HomeMy WebLinkAboutReso 1978-9340Form No. 342
Rev. 2/76.
RESOLUTION NO. 9340
RESOLUTION OF THE' CITY COUNCIL OF'~'iE"'CI'TY OF CHULA
VISTA, APPROVING AGREEMENT BETWEEN THE CITY OF CHULA
VISTA AND TRANSIT ADS INC. FOR CHULA VISTA BUS
ADVERTISING FOR A 20-MONTH PERIOD FROM NOVEMBER 1,
1978 TO JUNE 30, 1980
AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT
The City Council of the City of Chula Vista does hereby
resolve as follows:
NOW, THEREFORE, BE IT RESOLVED that that certain agreement
between THE CITY OF CHULA VISTA, a municipal corporation, and
TRANSIT ADS INCORPORATED, for provision of interior/exterior bus
advertising for a 20-month period from November 1, 1978 to June 30,
1980
dated the 24th day of October 1978 a copy of
which is attached hereto and incorporated herein, the same as though
fully set forth herein be, and the same is hereby approved.
BE IT FURTHER RESOLVED that the Mayor of the City of Chula
Vista be, and he is hereby authorized and directed to execute said
agreement for and on behalf of the City of Chula Vista.
Presented by
r ~..-:
W. J. Rob ns, Director of
Public Works
Approved as to form by
George D. indberq, City Attorng~~
ADOPTED AND APPROVED by the CITY COUNCIL of the CITY OF CHULA
VISTA, CALIFORNIA, this 24th day of October 1978 by
the following vote, to-wit:
AYE5: Councilmen Scott, Cox, Hyde, Gillow
NAYES: Councilmen Egdahl
ABSENT: Councilmen None
~ ~~Q.
Mayor of the City of Chula Vista
ATTES
y c:ler
STATE OF CALIFORNIA)
COUl~'1'Y OF SAN DIEGO) ss.
CITY OF CHULA VISTA)
of Chula
true and
not been
I, City Clerk of
Vista, California, DO HEREBY CERTIFY that the above
correct copy of Resolution No. and that the
amended or repealed. DATED
City Clerk
the City
is a full,
same has
°c~ r
t.. "Z~L-C.! a• z t. ,~c
ADVERTISING LEASE AGREEMENT
THIS LEASE AGREEMENT, made this 24th day of October ,
1978, by and between the CITY OF CHULA VISTA, a Municipal Corporation
(hereinafter referred to as "CITY"), and TRANSIT ADS INCORPORATED
located at 14600 East Alondra Boulevard, La Mirada, California
(hereinafter referred to as "TAI").
W I T N E S S E T H
WHEREAS, CITY is the operator of the Chula Vista Transit
System within its area's jurisdiction, and is a governmental entity
established under the laws of California and authorized to operate
a municipal transit system under Public Utilities Code of the State
of California; and,
WHEREAS, CITY has available on its leased transportation
vehicles advertising space available for lease; namely:
(a) Eleven (11) 30" x 144" Kings, on street side,
(b) Eleven (11) 30" x 88" Jumbo Queens,
(c) Ten (10) 21" x 72" Tail lights,
(d) Eleven (11) Coaches available with inside advertising
cards; and,
WHEREAS, the above space availability is based upon the
eleven (11) present transit Coaches, and one (1) additional transit
Coach to be added during the 1979 fiscal year.
NOW, THEREFORE, the mutual promises and conditions herein
contained, the parties hereto agree as follows:
1. The CITY hereby subleases to TAI for a period of
twenty (20) months from the 1st day of November, 1978, to
June 30, 1980, all the advertising frames as set forth in this
Lease Agreement.
2. This Lease Agreement shall cover all advertising frames
available, as above described, except for the following exclusions:
(a) The CITY shall retain the right to use all
exterior space available for public service on a space
available basis.
9'3y~
(b) The CITY shall retain up to six (6) inside
advertising cards in each Coach to be used for public
service messages.
3. TAI hereby agrees to pay as and for the term of the
Lease a minimum fee of $8,000, or fifty percent (500) of the net
income, whichever is the greatest amount. The $8,000 minimum
guarantee, shall be apportioned at the rate of $400 per month
over twenty (20) months. The contract with Beals and Associates
that expires January 31, 1979, will bring the CITY $125.00 per
month. This sum is included in the above cited minimum monthly
figure.
4. On a monthly basis, TAI shall remit to CITY no less
than fifty percent (500) of the net income received by TAI for
advertisements on or in the CITY Transit Coaches for that month,
commencing on November 30, 1978, or one-twelfth (1/12) of the annual
guarantee, whichever is greater. Net income is defined as Gross
Amount collected by TAI, less commissions paid to advertising
agencies.
5. As the CITY adds or deletes Coaches or advertising
space, the minimum guarantee will be adjusted accordingly to the
following rate:
per mor,+~
(a) $40~wi11 be added on to the guaranteed
minimum fee for each coach added to
Chula Vista Tran it (CVT) service.
per mo.n~F4~~~It_,
(b) $40~will be su tracted from the guaranteed
minimum fee for each coach deleted from
CVT service.
6. CITY shall provide and keep in good repair all frames.
Installation and removal of advertisers posters is to be handled
by TAI personnel.
7. TAI shall send, within thirty (30) days after the end
of each calendar month, two copies of a certified statement of the gross
billings, including a statement of the size and type of display
contracted for by each advertiser, and the collection for such
month, to the CITY's Transit Coordinator and Finance Office and
shall remit to the CITY the proportionate amount of such collection
~3yC1 -2-
shown to be due to the CITY as per the form that is set forth
above.
g• TAI shall keep full and complete and true and
accurate records of their businesses under this agreement and
records shall be available for inspection or audit by the CITY
or by the CITY's authorized agent to verify monthly statements
and payments at any reasonable time throughout the period of
this agreement.
9. TAI promises and agrees that it will sell advertising
or display space leased to advertising agency only upon uniform
contracts, copies of which will be kept on file with the CITY.
Advertising rates will be published and a copy of said rate shall
be kept on file with the CITY. TAI shall upon CITY's approval
have the right to display free of charge public, educational, and
charitable displays when there are unsold spaces available upon
the public transportation vehicles of the CITY. ~~
10. Text and Illustration on cards shall be subject to the
approval by TAI and the CITY. The CITY reserves the right to
disapprove any such text and illustration. TAI will not accept
any Liquor, Tobacco, or Pornographic advertising.
11. TAI and the CITY shall cooperate fully with each other
to promote and sell the advertising space available under the
terms of this Lease.
12. Both TAI and the CITY do not intend by the terms of
this Agreement to create a partnership, joint venture, or agency
relationship between the CITY and TAI.
13. The payment of rental on a percentage basis, is
adopted by the parties solely as a convenient means for measuring
rental to be paid for the parties and the privileges granted.
14. The obligations of each party to this agreement shall
be suspended for the duration of any strike, shut down, or other
material interference with Chula Vista Transit's operation.
- 3-
~3y0
15. TAI hereby agrees that the terms of this Lease shall be
binding upon their heirs and assigns.
16. TAI covenants to hold CITY free and harmless from any
loss from any and every claim and demand of whatever nature made on
behalf of or by any persons for any wrongful act or omission on the
part of TAI, its agents, servants, and employees, and from all loss
or damage by reason of such acts or omissions. TAI shall procure a
policy of insurance with limits of not less than twenty-five thousand
dollars ($25,000.00) for property damage or loss, and of one hundred
thousand dollars ($100,000.00) as to liability to any one person,
and three hundred thousand dollars ($300,OOOo00) as to liability
with respect to any one occurance for bodily injury or death, and
CITY shall be named in said policy as co-insured to the extent its
interest may appear.
17. Upon termination of this Agreement for any reason,
including completion of the term herein specified, all existing contracts
for advertising shall be assigned to the CITY. TAI shall continue to
bill and service all such contracts until their expiration and shall
receive 50% of the net revenue thereof.
18. TAI covenants to observe and obey all applicable laws,
ordinances, rules and regulations as the same may exist from time to
time.
19. TAI hereby agrees that it will not assign its interest
in this contract without`prior consent of the .City,
IN WITNESS WHEREOF, the parties hereto have set their
hands on this day and year first above written.
~~~ ~~
Mayor, City of Chul Vista
Jo n $. Jo t
Ex cutive ice President
ansit ds Incorporated
Approved as to form:
v Cit ! ttorney _ '
~3yo
DEPARTMENT OF PUBLIC WORKS
PROPOSED GUIDELINES REGARDING ACCEPTANCE/REJECTION OF
ADVERTISING COPY ON BUS BENCHES AND CVT BUSES
A. Advertising company (i.e. Bench Ad or Transit Ads Inc.) must
submit any advertising copy to the Director of Public Works
or his designated representative two weeks in advance of date
that company desires the specific ad to be placed on an
appropriate bench or CVT bus.
B. The Director of Public Works or his designated representative
shall reject any advertising which it believes is not in good
taste and/or presents a negative appearance to the transit
rider as well as the public at large. Prime criteria established
(but not limited) as decision-making tools, comprises the
following:
1. The size of ads on benches shall be no more than 1/3 of
the total space of the back of the bench (i.e. a maximum
of 2.5 feet),
2. The size of ads on CVT buses shall be no longer than:
a) 30" x 144" King size ads on street side
b) 30" x 88" Jumbo Queens on curb side
c) 21" x 72" tail lights in rear
d) 30" long card in interior of bus
3. Ads should not contain poor color coordination or be composed
of outlandish colors,
4. The content of the advertising copy shall
uncluttered. The message shall be direct
Profane or obscene language shall be proh
5. Any pictures used in the advertising copy
taste and attractive. It should not tend
for motorists.
be legible and
and tasteful.
ibited.
shall be in good
to cause diversion
C. The Director of Public Works or-his designated representative shall
reject all advertising which it deems detrimental to public welfare
such as tobacco, liquor, and pornographic advertising on all
benches that are to be installed throughout the City as well as
on the exterior and interior of CVT buses.
D. Staff shall work on a consistent basis with both Bench Ad and
Transit Ads in placement of public se rvice announcements as well
as CVT informational and promotional messages on unsold space on
bus benches as well as on the inside and outside of CVT buses.
:'APPROVED AS T 0 M BY
~,~!.~ ,,~~- , w
i
`^~~r~~~ l..~~~~~EE~C, CITY AT~-.7~EY
._ , ,.. ~.
z~io