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Department Approval: �� � � REQUEST FOR COUNCIL ACTION Manager Reviewed: DATE: 06/ 14/04 ITEM: 11. Agenda Section: Item Description: Consider Transit Shelter Franchise Ordinance with Outdoor Promotions, Inc. Background: In April, 2002, Craig Piernot, Outdoor Promotions, Inc. (from Denver), 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 similar issues. The Council approved a non-exclusive franchise ordinance on July 21, 2003, to allow for "advertising shelters" to be located along bus routes. Staff has been working with Outdoor Promotions on locations, as well as, a specific franchise ordinance creating a franchise agreement for advertising shelters with Outdoor Promotions, Inc., which would cover this type of installation on public right-of-ways. The City Attorney has drafted a transit shelter franchise ordinance specific to Outdoor Promotions (Exhibit A). This ordinance would be a non-exclusive franchise, meaning the City could enter into more than one franchise agreement for placement and operation of transit shelters within the City. On February 24 and Apri127,2004, the Public Works Commission considered the siting of 20 transit shelters in Roseville. A public hearing was held on Apri127,2004, which generated very little public input, either for or against transit shelters. Discussion: Staff has spent considerable time working with Outdoor Promotions on this issue. The attached franchise agreement is Outdoor Promotions current position on locations requested and franchise fees to be paid the City. This agreement specifies that 8% of gross advertising revenues be paid to the City annually based on 20 shelters. This may be more or less depending on the advertising market. Staff feels the 8% return to the City is low when compared to fee structures in Minneapolis and St. Paul, as well as other markets in which Outdoor Promotions operates. The proposed 20 sites that Outdoor Promotions is requesting at this time include three existing shelters that the City constructed with City and federal funds on Larpenteur Avenue. Staff feels the fees returned to the City on these three shelters should reflect the smaller investment on the part of Outdoor Promotions. We would not recommend approval of these sites at this time. Recommendation: Staff is recommending the Council n�t a � this franchise agreement at this time. We seek direction from the Council as to sta scekiog other firms interested in locating transit shelters in the City. Representatives from Outdoor Promotions may be present to discuss this item further with the City Council.