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REQUEST FOR COUNCIL ACTION DATE: Ol/24/OS ITEM: 4. DepartmentApproval: Manager Reviewed: Agenda Section: � � •� � �� `J � Item Description: Consider Transit Shelter Franchise Provider Background: In April, 2002, Outdoor Promotions, Inc., presented to the City Council a proposed transit shelter improvement plan along bus routes in Roseville and possibly throughout the 35W coalition Cities. They have been working throughout the Metro Area on offering similar programs to other cities. The Council established a non-exclusive franchise ordinance on July 21,2003, to allow for "advertising shelters" to be located along bus routes. The ordinance establishes the terms and conditions under which a franchise would be granted to a provider, as well as the level of maintenance required of them. On February 24 and Apri127,2004, the Public Works Commission considered the siting of 20 transit shelters in Roseville based on the Outdoor Promotions proposal. A public hearing was held on Apri127,2004, which generated very little public input, either for or against transit shelters. In June of 2004 staff brought forward a proposed franchise ordinance that would have granted a franchise to Outdoor Promotions Inc. Staff recommended that the Council not move forward at that time to allow for further exploration of other vendors' interest in establishing a transit shelter program in Roseville. We have been working with Transtop Inc., the current provider of advertising transit shelters in Minneapolis and St. Paul, on their interest in expanding their program into Roseville. They have provided transit shelters for 25 years in those communities. We have had discussionswith the Public Works Commission in November and December comparing the programs and franchise fees offered by the two providers (Exhibits A& B). The Transtop program in Minneapolis and St. Paul does not offer trash receptacles and pickup as required by our ordinance. They have now offered to include this in their proposed Roseville program to meet the requirement of our ordinance. As of the December Commission meeting, both vendors were offering an 8% initial franchise fee to the City based on gross advertising revenues. The Public Works, Environment, and Transportation Commission at their December, 2004, meeting voted to recommend to the council that a franchise be granted to Transtop Inc. to establish a transit shelter program in the City of Roseville (Exhibit B). Outdoor Promotions indicated after that meeting that they would still be seeking a franchise in Roseville, as we have a non-exclusive franchise ordinance allowing the council to grant more than one franchise. Since the Commission discussion, Transtop has increased their franchise fee proposal as indicated in their attached letter (Exhibit C).