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31 OutFront has had discussions with Metro Transit about selling the shelters to them in the event 32 the City did not want to purchase them. Staff has followed up on this and learned that Metro ss Transit does not have any interest in purchasing the shelters. sa Metro Transit has faced considerable criticism and scrutiny over the past few years about where 35 transit shelters have been installed in the past. The criticism centers around the fact that many of ss the locations with shelters located in more affluent areas of the Metro had lower ridership than 37 bus stops within low income areas without shelters. Metro Transit has since adopted more sa detailed guidance on where shelters will be installed (see Attachment C which was printed from ss the Metro Transit web site). ao Given this, there is no guarantee that if the existing shelters are removed that we could expect to at see Metro Transit installed shelters at these locations in the future. Additionally, even if Metro 42 Transit were to someday install some shelters in the City, they currently do not provide snow as removal or trash service at their shelter locations which would be a dramatic difference in the as level of service currently experienced at our existing shelters. 45 Please also note the 20 shelters referenced above and shown on the attached map include two as shelters at Snelling Ave and County Road B. Those shelters have been removed in anticipation of 47 the new enhanced stations that are being installed for the A Line Bus Rapid Transit (BRT) as service along Snelling Ave that will be in operation next year. Construction on those stations just as recently started. If the franchise agreement had remained active, the City would have worked 50 with the PWET Commission and the City Council to identify two new locations for those 51 shelters. Currently the shelters are being stored in the Public Works Maintenance Yard. 52 DISCUSSION 53 Staff will present this information along with some more detailed information on this program 54 and the possible outcomes at the Council meeting. We are seeking direction from the City 55 Council on what to do with the shelters given that the franchise arrangement no longer seems 56 sustainable. To review, staff is presenting two options to consider: 57 1. Allow the franchise agreement with OutFront Media to expire and, as per the terms of the 58 agreement, require them to remove the shelters and restore the sites to the previous 59 condition or a negotiated final condition (i.e. leave the concrete pads in place). so 2. Purchase the shelters from OutFront Media and leave the shelters in place. In order to 61 fund the maintenance of the shelters release a Request for Proposals to sell advertising on 62 the shelters and collect revenue from those advertisement sales. The advertisement sales ss would also be used to offset the purchase price over time. sa Staff has contacted a separate advertisement firm to discuss their interest in taking over the 65 franchise agreement. This firm, Intersection, which recently won the contract to provide ss advertisements on Metro Transit vehicles and stations, indicated they would not be interested in 67 assuming the same ownership and maintenance responsibilities but would be interested in selling sa the ad space and sharing the revenues. OutFront Media also indicated they would be interested in ss that service. Therefore staff anticipates we would receive at least two proposals if we were to 70 issue an RFP. 71 FINANCIAL IMPLICATIONS 72 Based on the Council's direction to staff, the City may incur a cost of $20,000 to purchase the 73 transit shelters. It is recommended that the Engineering Services fund be used to fund the Page 2 of 3