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Agenda Item 26.

City Council Meeting

Meeting Date:	10/06/2020
FROM:	Bill Gallardo

Subject:

Approve Amendment No. 1 to Bus Shelter Agreement with Clear Channel Outdoor, Inc. for a Six-Month Pandemic Relief Plan

RECOMMENDATION

Approve Amendment No. 1 to Bus Shelter Agreement to initiate a six-month pandemic relief plan with Clear Channel Outdoor, Inc.

BACKGROUND/DISCUSSION

The City has contracted with Clear Channel Outdoor, Inc. (Clear Channel) for the provision and maintenance of bus shelters since 1978. Under their current contract, which expires June 2021, Clear Channel is obligated to supply the City with 28 bus shelters complete with benches and trash receptacles, as well as perform regular pressure washing and graffiti removal of shelter equipment; making necessary repairs; and regularly emptying trash receptacles.

The agreement also specifies that Clear Channel pay the City the greater of either $93 per shelter per month, or 18% of gross revenues generated by allowing Clear Channel to use the bus shelter display cases for advertising. This currently equates to $32,000 in annual City revenue equally supporting the Senior Transportation and Art in Public Places programs within the General Fund.

In April 2020, and in response to COVID-19 hardships, Clear Channel requested the City waive a full calendar years' worth of obligated revenue due to a decline in advertising interest from their clients. In June 2020, the City Council approved a 90-day deferral of Clear Channel's quarterly payments, consistent with other relief or payment extensions granted to other payees. Clear Channel countered with a modified request for the City to consider waiving only 50% of FY 2020-21 revenue which would include payments owed from July 1, 2020 through December 31, 2020. Clear Channel would resume regular payments in January 2021.

Staff gave a report on the status of Clear Channel's revised request at the August 18, 2020 City Council Study Session. Staff received support to proceed with drafting a six-month pandemic relief contract amendment with the condition that Clear Channel provide some advertising cost relief to Brea's struggling small businesses through a partnership with the Brea Chamber of Commerce. Staff negotiated this term with Clear Channel, which resulted in language that satisfied the City of Brea, Clear Channel Outdoor, Inc. and the Brea Chamber of Commerce.

The six-month COVID-19 Pandemic Relief Amendment terms include:

Clear Channel will not make any payments to the City for the months of July 2020 through December 2020.
Clear Channel will resume payments in January 2021 through the remainder of the contract term of June 2021.
Clear Channel will sell advertising space to "Eligible Businesses" at only the cost of production and installation for the months of October 2020 through April 2021.
- An "Eligible Business" is a business that possesses a valid Brea business license and is not a component of a franchise or multi-city conglomerate.
- The Brea Chamber will serve as a partner to confirm and validate business eligibility.
- Clear Channel will provide the City with a written report of the businesses that participated in this program by May 31, 2021.

COMMISSION/COMMITTEE RECOMMENDATION

At their September 29, 2020, meeting the Finance Committee reviewed this item and recommended it for City Council approval.

FISCAL IMPACT/SUMMARY

Authorizes six months of payment relief equating to $15,624 in reduced City revenue for FY 2020-21. While annual Clear Channel revenues go towards equally supporting the Senior Transportation and Art in Public Places programs within the General Fund, staff is recommending that any Clear Channel revenues received in FY 2020-21 be applied to only the Senior Transportation Program funding, as these dollars serve as a match to existing Senior Mobility Program grants.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Jenn Colacion, Comunity Services Management Analyst
Concurrence: Chris Emeterio, Assistant City Manager and Carrie Hernandez, Community Services Manager

Attachments
Amendment