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Outdoor Promotions in their attached letter has also reiterated that they would be willing to <br />increase the fee payable to the City to 10% after the first five years (Exhibit D). <br />Discussion: Staff has spent considerable time working with Outdoor Promotions and Transtop <br />on this issue. We have attached a map showing each vendor's proposed locations for their <br />shelters (Exhibit E). The franchise ordinance details the requirements of the programs, and we <br />believe both can meet the requirements. The estimated annual revenue to the City, based on a <br />20-shelterprogram, could range between $5,000 and $10,000. Transtop is offering a 9% <br />franchise fee or a graduated fee structure to the City based on gross advertising revenues. <br />Outdoor Promotions is offering the City an initial fee of 8% of gross revenue, which would <br />increase to 10 % after the fifth year of the agreement. <br />Recommendation: Staff is asking the Council to provide direction to staff as to which provider <br />we would work with in drafting a granting ordinance. This could come back to the Council in <br />March for approval. This would allow spring or early summer construction of the shelters. <br />For your reference, a copy of the Non-Exclusive Transit Shelter Ordinance is attached (Exhibit <br />F). <br />Prepared By: Duane Schwartz <br />