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Attachment E � � REQUEST FOR COUNCIL ACTION Date: November 30, 2015 Item No.: Department Approval City Manager Approval Item Description: Transit Shelter Franchise Discussion 1 BACKGROUND z In April of 2005 the Roseville City Council adopted Ordinance No.1317 Granting a Non - 3 Exclusive Transit Stop Shelter Franchise to Transtop Minnesota, Inc. subject to the terms, a conditions and requirements of Chapter 1207 of the Roseville City Code (see Attachment A). 5 This franchise agreement together with Chapter 1207 of the City Code, provides for the right for o the franchisee to erect and maintain transit shelters at several locations within the City of 7 Roseville. The 20 locations were recommended by the Public Works, Environment, and a Transportation Commission in 2005 and were approved by the City Council at the same time the 9 franchise was granted. The agreement established a ten year term with two five year extension 10 options. 11 Since that time, Transtop Minnesota, Inc., has been purchased by CBS Outdoors and then this 12 division was spun off into a separate company, OutFront Media. The franchise agreement has 13 remained valid through this transition and the responsible company has kept up with the required 14 maintenance. 15 For the past ten years this arrangement has worked relatively well, and the City has received 16 several thousand dollars per year in additional revenue as stipulated in the franchise agreement. n There have been times where the City has had to notify the franchisee of required maintenance 18 after receiving complaints from the public, but the response time was generally satisfactory. As 19 the term of the franchise was nearing expiration, the City did not have reasons to deny an 20 extension as provided in the franchise agreement. 21 Earlier this year, OutFront Media lost business in adjacent Cities for similar services and zz therefore began a discussion with the City about the possibility of not extending the agreement. 23 The discussions seemed to be heading towards a "trial' extension whereby OutFront would za attempt to perform the required maintenance with a smaller work force, but recently they have zs given formal notice that they will not be extending the franchise agreement and are therefore zs looking for a resolution to the transfer of ownership for the transit shelters. 21 OutFront has offered the shelters to us at a purchase price of $1000 per shelter. For the 20 za shelters that would be $20,000. If we were to purchase the shelters out right the City would need 29 to identify a funding mechanism to pay for the ongoing maintenance of the shelters, including so snow removal, trash pick-up, general cleaning, and structure maintenance. Page 1 of 3