HomeMy WebLinkAbout17- Administration CITY OF SAN BERK .RDINO - REQUEST I )R COUNCIL ACTION
From: Pe Duce Subject:
Peggy y Resolution regarding modification
Dept: of Agreement with Metro Display
p Administration Advertising, dba Bustop Shelters
Date: February 19, 1993
Synopsis of Previous Council action:
June 1, 1990 — Mayor and Common Council approved agreement with Metro Display
Advertising, dba Bustop Shelters to construct nineteen shelters.
October 23, 1991 — First Amendment approved to construct an additional thirteen
shelters and fifteen non—advertised bus benches.
Recommended motion:
Adopt resolution.
ignature
Contact person: Peggy Ducey Phone: 5122
Supporting data attached: yes Ward: all
FUNDING REQUIREMENTS: Amount:
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
75-0262 Agenda Item No.
CITY OF SAN BERK- .RDINO - REQUEST t JR COUNCIL ACTION
STAFF REPORT
On October 23 , 1991, the Mayor and Common Council approved a first
amendment to an agreement dated June 1, 1990 with Metro Display
Advertising, doing business as Bustop Shelters. The original
agreement provided for the construction of nineteen advertising bus
shelters to be placed throughout the City. These shelters were
actually constructed. The first amendment allowed for an
additional thirteen shelters and fifteen non-advertised bus benches
to be installed at designated locations in the City. These were not
constructed before January 22, 1992 when Bustop Shelters filed for
voluntary reorganization under Chapter 11 of the Federal Bankruptcy
Code.
Once bankruptcy was filed, Bustop Shelters did not take action to
install the additional 13 shelters, nor did they pay the City any
revenues from the advertising on existing shelters. Since they
filed for reorganization, Bustop has changed management and
developed a Plan of Reorganization. As part of that plan, they are
requesting some modifications to the existing agreement and first
amendment. The modifications are as follows:
1. That the City not require the thirteen shelters and
fifteen benches approved through the first amendment be
constructed.
2 . That the Contractor pay all advertising revenue owed to
the City prior to the Chapter 11 over a two year period.
The amount due is $14, 250, which covers April 1991 to
January 1992 .
3 . That all revenue owed to the City after Chapter 11 filing
be paid upon court approval of the Plan of
Reorganization, estimated to be in late March, 1993 . The
amount due as of April 1, 1993 will be $19,950.
To be included in the Plan of Reorganization, Council must take
action on this second amendment before March 17, 1993 .
RECOMMENDATION
Approve resolution.
75-0264
1 RESOLUTION
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF A SECOND AMENDMENT TO AN AGREEMENT BY AND BETWEEN THE
3 CITY OF SAN BERNARDINO AND METRO DISPLAY ADVERTISING, INC. , DOING
BUSINESS AS BUSTOP SHELTERS OF CALIFORNIA, INC.
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
5 SAN BERNARDINO AS FOLLOWS:
6 SECTION 1. The Mayor is hereby authorized and directed to
7 execute on behalf of said City a second amendment to the Agreement
8 by and between the City of San Bernardino and Metro Display
9 Advertising, Inc. doing business as Bustop Shelters of California,
10 Inc. , a California corporation, 2692 Dow Avenue, Tustin, CA, 92680
11 relating to the reorganization through bankruptcy of Bustop
12 Shelters.
13 SECTION 2 . The authorization to execute the above-referenced
14 amendment is rescinded if the parties to the agreement fail to
15 execute it within sixty (60) days of the passage of this
16 resolution.
17 I HEREBY CERTIFY that the foregoing resolution was duly
18 adopted by the Mayor and Common Council of the City of San
19 Bernardino at a meeting thereon, held on the day
20 of 1993 , by the following vote, to wit:
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j RESOLUTION OF THE CITY OF SAN BERNARDINO EXECUTING AN AMENDMENT TO
THE AGREEMENT WITH METRO DISPLAY ADVERTISING, INC. (BUSTOP SHELTERS
2 OF CALIFORNIA) RELATING TO THE PROVISION OF AN ADDITIONAL 13
SHELTERS.
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4 COUNCIL MEMBERS AYES NAYS ABSTAIN ABS=
5 ESTRADA
6 REILLY
7 HERNANDEZ
8 MAUDSLEY
9 MINOR
'10 POPE-LUDLAM
11 MILLER
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.13 City Clerk
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The foregoing resolution is hereby approved this day
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of , 1993 .
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:18 W. R. Holcomb, Mayor
City of San Bernardino
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Approved as to form
20 and legal contentf:--'Zc,-�tC
21 JAMES F. PENMAN
City Attorney
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23 By:
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1 SECOND AMENDMENT TO AGREEMENT
2 THIS SECOND AMENDMENT TO AGREEMENT made and entered into this
3 day of , 1993 , by and between the CITY OF SAN
4 BERNARDINO, a municipal corporation, 300 North "D" Street, San
5 Bernardino, California 92418 and Metro Display Advertising, Inc. ,
6 herein doing business as BUSTOP SHELTERS OF CALIFORNIA, INC. , a
7 California corporation, 2692 Dow Avenue, Tustin, CA 92680 (herein
8 referred to as "Contractor") .
9 WITNESSETH:
10 WHEREAS, the parties hereto entered into that certain
11 Agreement dated June 1, 1990, and a first amendment dated October
12 23 , 1991, relating to bus shelters at certain bus stops locations
13 throughout the City, and
14 WHEREAS, the parties desire now to amend said Agreement in
15 response to the reorganization of Bustop Shelters through
16 bankruptcy,
17 WHEREAS, Contractor did not construct additional 13 shelters
1,8 nor 15 non-advertised bus benches, and under the direction of prior
19 management, committed to install more advertising bus shelters than
20 the market can bear and therefore has placed a financial burden on
21 the company to the extent it has filed for protection under Chapter
22 11 of the Federal Bankruptcy Code,
23 NOW, THEREFORE, the parties hereto agree as follows:
24 1. Section 1 of said Agreement is hereby amended to read as
25 follows:
26 111. Right to Construct
27 City hereby grants to Contractor, on the
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I terms hereinafter described, a license to
2 construct, erect, install, repair, maintain
3 and insure shelters at nineteen (19)
4 designated bus stop locations on City
5 property, attached as Exhibit "A" .
6 All such shelters shall be completely
7 constructed within three (3) months of the
8 date of this Agreement is executed.
9 City further grants to Contractor, on the
10 terms hereinafter described, a license to
11 construct, erect, install, repair, maintain
12 and insure an additional thirteen (13)
13 designated bus stop shelters at locations on
14 City property, attached as Exhibit "B" .
15 All such additional shelters shall be
1.6 completely constructed with three (3) months
17 of the date this Amendment to Agreement is
18 executed. "
19 The City grants that the thirteen (13)
20 shelters and fifteen (15) benches approved
21 through the contract amendment date October
22 231 1991 will not be required to the
23 constructed.
24 2 . Section 2 of said agreement is hereby amended to read as
25 follows:
26 112 . Fees.
27 Contractor shall pay City seventy-five
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1 dollars per shelter per month or sixteen
2 percent (16%) of the gross advertising
3 received by Contractor for the rental of
4 advertising space for each shelter, whichever
5 is greater.
6 Contractor shall pay, under the terms of
7 bankruptcy reorganization the pre-petition
8 amount owed to City of $14,250, due for the
9 period of April, 1991 through January, 1992 .
10 This amount is to be paid over a two-year
1.1 period as specified in Contractor's Plan of
12 Reorganization as confirmed by the Federal
13 Bankruptcy Court.
14 The post-petition amount owed to City as
15 of March 1, 1993 is $18, 525, due for period of
16 February 1, 1992 through February 28, 1993 .
17 The post-petition amount will continue to
1$ accrue each month by $1, 425 until the Plan of
19 Reorganization is confirmed by the Court. All
20 payments thereafter to be made timely.
21 City and Contractor agree that no new
22 advertising bus shelters will be installed
23 providing guaranteed fees from advertising
24 revenue but additional shelters may be
25 installed with a percentage of the advertising
26 revenue received after agency commission
27 remitted to City under the same conditions
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I outlined in the First amendment to the
2 agreement. Additional non-advertising bus
3 shelters or bus benches will not be provided.
4 Roof design and shelter color will be
5 Contractor's standard bus shelter design.
6 3 . Section 3 of said agreement is hereby amended to read as
7 follows:
8 113 . Term.
9 The term of this Agreement is five (5)
10 years. At the conclusion of this Agreement,
11 the parties may renew or renegotiate the terms
12 and conditions. If the Agreement is not
13 renewed, Contractor shall remove all shelters
1,4 as provided in Paragraph 5 (d) .
1.5 4 . Except as provided herein, all other terms and conditions
16 of the original agreement and first amendment remain unchanged and
17 in full force and effect.
18 IN WITNESS WHEREOF, the parties have executed this Amendment
19 to Agreement on the day and date first above shown.
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j AGREEMENT BY AND BETWEEN THE CITY OF SAN BERNARDINO AND METRO
2 DISPLAY ADVERTISING, INC. (BUSTOP SHELTERS OF CALIFORNIA)
3 ATTEST: CITY OF SAN BERNARDINO
BY:
4 CITY CLERK W. R. HOLCOMB, MAYOR
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Approved as to form
6 and legal content$
7 JAMES F. PENMAN,
City Attorney
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BY:
9 CONTRACTORS:
METRO DISPLAY ADVERTISING, INC.
10 d.b.a. BUSTOP SHELTERS OF
11 CALIFORNIA, INC.
BY:
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BY:
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