Loading...
HomeMy WebLinkAboutCULVER AMHERST LLC - later named Signal Outdoor Advertising, LLC - 1998-12-21 (12)Qcv�ied o 76, ,Ci'iedt»rieh %ye�s�� Tz- ,t3�,�eo6Le1�- �°1.v0 CITY OF HUNTINGTON BEA f�eov.see�� MEETING DATE: April 19, 1999 DEPARTMENT ID NUMBER: AD99-3 Council/Agency Meeting Held: 4ZO to: 7rred/Continued Approved ❑ Conditionally A roved ❑ Denied hif o;�Y ?ty Jerk's Signature Council Meeting Date: April 19, 1999 Department ID Number: k95:3 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION r SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS a -1, SUBMITTED BY: RAY SILVER, City Administrator PREPARED BY: RICHARD BARNARD, Deputy City Administrator ROBERT F. BEARDSLEY, Director of Public Work�> SHARI L. FREIDENRICH, City Treasua2 JOHN REEKSTIN, Director of Administrative Services/A SUBJECT: AWARD OF A FRANCHISE AGREEMENT FOR TRANSIT ADVERTISING SERVICES RELATED TO THE PLACEMENT OF BUS SHELTERS / BUS BENCHES WITHIN THE PUBLIC RIGHT OF WAY Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should the City Council enter into a ten-year Franchise Agreement for Transit Advertising Services for the purpose of providing street furniture within the public right-of-way for members of the public that use Orange County Transportation Authority (OCTA) bus services within the City of Huntington Beach? Funding Source: Revenues, derived from the Transit Advertising Services Franchise Agreement will be deposited into the City's GeneralFund Revenue Account. City Council Economic Development Committee (EDC) Recommended Action: 1. Move that the City enter into a ten-year Franchise Agreement for Transit Advertising Services with C'a for lacement of bus sh hers / bus b nches within the public right-of-way. ell/✓e.� ( AlakeY".D (-/ 7d re." /l/4 RCA ROUTING SHEET.doc -2- 04/13/99 9:28 AM REQUEST FOR COUNCIL ACTION MEETING DATE: April 19, 1999 .. ..DEPARTMENT ID NUMBER: AD99-3 2. Direct City staff to negotiate ��1pn-year franchise Agreement between the City of Huntington Beach and e aP�d return to City Council for approval on May 3, 3. Authorize an appropriation of $83,620 from the General Fund unappropriated Fund Balance into the Public Works Department Budget and Direct the City Administrator to increase the Public Works Department's Table of Organization by one (1) full time Traffic Technician po iti n ($58,620) and provide for (1) one vehicle ($25,000). AP�i2d ✓ED (/� �R��� mod) Alternative Action(s): 1. Select Culver Amherst LLC to provide Transit Advertising Services and direct City staff to negotiate a ten-year Franchise Agreement with Culver Amherst LLC and have that agreement returned to City Council for final approval on May 3, 1999. 2. Reject all bids and direct that new proposals be solicited. Analysis: On December 21, 1999 the City Council rejected all bus shelter / bus bench proposals and directed City staff to reinitiate the RFP process. City Council directed City staff to return to the Council with a recommendation within ninety (90) days. A revised RFP and sample Franchise Agreement was prepared, along with the criteria upon which proposals would be evaluated. On February 3, 1999 Deputy City Attorney Jennifer McGrath and other City staff team members presented this information to the City Council Economic Development Committee (EDC). City Council Members present at the EDC meeting were Mayor Pro Tern Dave Garofalo, Council Member Dave Sullivan and Council Member Ralph Bauer. After review and discussion by the EDC of the revised RFP and sample Franchise Agreement, City staff was authorized by the EDC to distribute the documents. The RFP was mailed to fifteen (15) companies. The City's Purchasing Officer notified all fifteen (15) companies of a February 16, 1999 pre -proposal meeting. Companies interested in submitting proposals were encouraged to attend the meetinto ask questions relating to the City's RFP. Four (4) companies attended the February 16t pre -proposal meeting. The final date for submittal of proposals to the City was March 5, 1999. Proposals were received from the following five (5) companies: 1. Chancellor Municipal Group 2. Culver Amherst, LLC 3. Eller Media Company 4. Gateway Outdoor Advertising 5. Outdoor Systems Advertising A review panel of City staff consisting of Richard Barnard, Deputy City Administrator, Shari Freidenrich, City Treasurer, Dan Villella, Finance Director, and Robert Hidusky, Traffic BUSSHEL.DOC -3- 04/15/99 2:13 PM REQUEST FOR COUNCIL ACTION MEETING DATE: April 19, 1999 DEPARTMENT ID NUMBER: AD99-3 Engineer Technician met several times to review the five (5) proposals and arrive at a preliminary recommendation to select Culver Amherst. In addition, Rick Amadril, Purchasing Manager and Jennifer McGrath, Deputy City Attorney attended several of these meetings and provided support to the review panel Also, as directed by the City Council at the December 21, 1998 City Council meeting, city staff review panel met with the City Council Economic Development Committee (EDC) on March 25, 1999 to discuss the proposals, and to share with the EDC it's conclusions. In reviewing the proposals, city staff focused its attention in the following areas: Amount of hard revenues (cash) the selected company would pay to the City for granting them a ten-year Franchise Agreement. 2. The ability of the company to perform and meet the conditions outlined within the Franchise Agreement. 3. Determination of the appropriateness and acceptability of the company's approach and work plan for the installation, maintenance and repair and for the level of in -kind services and innovation the company would bring to the City. 4. Review of the companies' qualifications, knowledge and experience with projects of a similar nature, including past performance and references. After the city staff review panel evaluated the five- (5) proposals and outlined the merits of each, it was concluded that two (2) of the five- (5) companies stood out far and above the other three. Following this conclusion, the review panel continued its meetings and analysis to determine which of the two (2) leading companies staff believed would best serve the interest of the City over the 10 year agreement. To insure that all aspects of the proposals were considered the City Administrator asked John Reekstin, Director of Administrative Services, and David Biggs, Director of Economic Development to join in the review of the top two proposals. After this additional review staff met and discussed the proposals and concluded that the staff would continue to recommend Culver Amherst. The City Council's Economic Development Committee (EDC) of Green, Garofalo and Dettloff met on March 24, 1999 and after discussing the proposals with city staff determined that the Committee wanted to interview both Eller Media and Culver Amherst. Interviews by the EDC Committee were held on April 7, 1998. The EDC adjourned at the conclusions of the interviews, postponing a decision on which firm they wanted to recommend to the City Council, until Monday, April 12, 1999. At the April 12, 1999 EDC meeting the City Council Committee determined, by a vote of 2-1 (Dettloff), to recommend to the entire City Council that the Transit Shelter Franchise Agreement be awarded to Eller a. a. 1 RCA ROUTING SHEET.doc -4- 04/15/99 1:24 PM REQUEST FOR COUNCIL ACTION MEETING DATE: April 19, 1999 DEPARTMENT ID NUMBER: AD99-3 Profile of the OCTA Baas Service for Huntington Beach The City of Huntington Beach is currently served by thirteen (13) Orange County Transit Authority (OCTA) bus routes (routes 1 /1 A, 25, 29, 33, 35, 37, 64, 66, 70, 72/72A 74, 76/76A, & 701). To service these bus routes there are currently 473 bus stops located along these thirteen (13) bus routes. The OCTA estimates bus ridership within Huntington Beach to be 3,500,000 per year. Over the ten- (10) year term of the Franchise Agreement it is anticipated that the number of bus routes and bus stops will expand and ridership will grow to well over 4,500,000 riders per year. To service the needs of the bus riding public, the City, through granting of a Franchise Agreement, can both assist the bus riders by allowing a private company the ability to locate street furniture within the public right-of-way at OCTA designated bus stops, while at the same time garnering revenues for the City. In exchange for allowing the private company to place commercial ads on their bus shelters and bus benches, the City is paid a portion of the advertising dollars. City Staff Analysis Presented below are the more salient points related to each of the four- (4) criteria that were used during the evaluation of the proposals, which lead the city staff their final conclusions. 1. Amount of herd revenues (cash) the selected company would pay to the City in exchange for granting them a ten-year Franchise Agreement to use public right-of-way for placement of street furniture. Revenue Analysis Up until 1997 the City had contracts with three separate bus shelter companies. These companies were Shelter Vision, Patrick Target Media, and Metro Display. Beginning in 1995 these three separate bus shelter companies where acquired by Eller Media. Eller Media purchased Patrick Target Media in August 1995, Shelter Vision in November 1996 and Metro Display in 1997. The City Council approved the assignment of the Patrick Target Media and Sheltervision Contracts to Eller Media on February 3, 1997. There is no record of the City Council ever approving the assignment of the Metro Display contract to Eller Media. Today, the Eller Media Company is the only company providing bus shelters within the city. The significance of the bus shelter contract to the city can be seen by looking at the amount of revenue currently being collected by the City and comparing that to the minimum revenue being offered by those bus shelter companies submitting proposals. Under the current contractual arrangements with Eller Media the revenue paid to the city by Eller Media from January 1, 1997 through March 30, 1999 (27 months) is $435,500. Under either the Culver -Amherst or the Eller Media proposals revenue to the city will be greatly enhanced. RCA ROUTING SHEETAOC -5- 04/15/99 1:24 PM REQUEST FOR COUNCIL ACTION MEETING DATE: April 19, 1999 DEPARTMENT ID NUMBER: AD99-3 In reviewing the five (5) proposals, two (2) of the five (5) submissions stood out with regard to their ability to compensate the City for use of the public right-of-way for placement of bus shelters and bus benches containing ad space. Under the following Revenue Analysis both Culvert Amherst LLC and Eller Media Company proposed revenue payments to the City that are substantially more than those revenues currently being collected by the City. The following is a revenue analysis of the guaranteed minimum payments from Culver Amherst and Eller Media. Comparison of these two (2) proposals show that if the City were to receive only the guaranteed minimum rent for 170 shelters and 300 benches, Culver Amherst would pay $1,798,200 (1/3) more than would be the case with Eller Media. The following table shows minimum revenue comparisons between the two (2) companies. PAYMENTS TO THE CITY CULVER AMERHURST, LLC ELLER MEDIA COMPANY DIFFERENCE YEAR 1 $498,000 $2,468,400* YEAR 2 $600,000 0 YEAR 3 $600,000 0 YEAR 4 $600,000 0 YEAR 5 $753,000 0 YEAR 6 $753,000 $541,200 YEAR 7 $753,000 $557,040 YEAR 8 $858,000 $572,880 YEAR 9 $858,000 $588,720 YEAR 10 $858,000 $604,560 TOTAL $7,131,000 $5,332,800* $1,798,200 CREDIT FOR PRESENT VALUE $458,568** GRAND TOTAL FOR CASH PAYMENTS TO THE CITY $7,131,000 $5,791,368 $1,339,632 * From Eller Media Company Proposal, Page 54 "Credit for Present Value due to advance payment in year one, Page 62 of Eller Media Proposal Under the proposal received from Eller Media Company, they indicated a willingness to pay an advance rent amount of $2,468,400 to the City upon the execution of the Franchise Agreement. This amount equates to the payment for the placement of 170 bus shelters and 300 bus benches at bus stops located inside the City for the first five (5) years of the Franchise Agreement. On the sixth year of the Franchise Agreement, Eller Media would begin making advance minimum quarterly payments to the City as shown in the above table. Because of the time value of money, this offer adds significant monetary value to their offer. This additional value has been determined to equate to $458,568. Therefore, this amount has been factored in (and reflected in the above comparison table) when calculating the financial benefit of their proposal to the City. This present value increases Eller Media total minimum cash payment to the City from $5,332,800 to $5,791,368. While a significant increase, it still falls short of the cash value being offered by Culver Amherst by RCA ROUTING SHEET.doc -6- 04/15/99 1:24 PM REQUEST FOR COUNCIL ACTION MEETING ®ATE: April 19, 1999 DEPARTMENT I® NUMBER: AD99-3 $1,339,632. Also, it should be pointed out that Culver Amherst will pay to the city a first year's minimum payment of $498,000 immediately following a 30 day notice to Eller Media to remove its bus shelter from the city's public right- of- way. If the city desires placement of more than 170 bus shelters then the advance payment would be increased upward to match the minimum payment per shelter for the first year. In addition to the guaranteed minimum revenue, both proposals offer to share percentages of advertising revenues with the City. The rate and method of these calculations are significantly different. The Culver Amherst proposal would pay the City a percentage of revenue or the minimum rent whichever amount is greater. This percentage rate ranges from 25% to 30% over the ten (10) year period of the Franchise Agreement. The Eller Media proposal would pay the City a percentage of revenue when its advertising occupancy rate reaches 70%. This percentage rate ranges from 1 % to 6% for occupancy rates within 70% to 100%. When comparing the two methodologies, it would appear very unlikely that the Eller Media percentage methodology to exceed the Culver Amherst formula. This is best illustrated with the following example: • Under the 5th year of the Eller Media proposal, Eller Media will pay to the City $224 per month plus 6% of revenues, assuming they have sold 100% of their available rental space. ® For comparison purposes, the 5th year of the Culver Amherst proposal, Culver Amherst will pay to the City $325 per bus shelter or 27% of revenue, whichever amount is greater. The result of this comparison shows that for the Eller Media formula to reach the $325 minimum payment threshold as promised by Culver Amherst, their space rentals would need to cost $1,683 ($224 plus 6% of the $1,683 to equal $325). But if the space rental is worth $1683, the Culver Amherst method would pay $454 to the City, which would equate to 27% of the $1,683. Therefore, while the City can only be certain of receiving the minimum income, the Culver Amherst percentage methodology offers much greater potential revenue to the City. It should also be pointed out that Eller Media has offered the City an option of enhancing its cash receipts by $345,000 by having the City forgo the placement of thirty (30) non - advertising shelters and thirty (30) public service shelters at bus stop locations in the City. Even if the City was to accept this option, the revenues being offered to the City under the Eller Media proposal is still $994,632 less than is being offered by Culver Amherst. The availability of non -advertising bus shelters and public service announcement bus shelters RCA ROUTING SHEET.doc -7- 04/15/99 1:24 PIVI MEETING DATE: April 19, '1999 DEPARTMENT ID NUMBER: AD99-3 would be a loss to the City; thus, the in -kind value being offered by Eller Media would be significantly reduced. Likewise, it should be indicated that while the previously shown minimum revenue was calculated using 170 shelters and 300 benches, Culver Amherst offered to pay minimum rent for as many as 300 shelters and 500 benches if so desired by the City. Such an option would increase the City's ten-year minimum revenue from Culver Amherst to $12,060,000, $4,929,000 more than shown for comparison purposes. Therefore, using a scenario in which the City would accept the $345,000 Eller Media option and would accept the Culver Amherst option, the revenue differential would increase from $1,339,632 differential to $5,923,632. 2. The ability of the Company to perform and meet the conditions outlined within the Franchise Agreement. Of the five (5) companies submitting proposals, Culver Amherst and Eller Media were determined to be the most qualified to perform contractual obligations. This conclusion was based upon the two (2) companies' financial strength, knowledge and experience in the transit shelter business. Eller Media scored the highest in this category due to the company's longevity in the outdoor advertising business and the recent (February 1997) acquisition of Eller Media by Clear Channel Communications Company. Clear Channel Communications is a multi -billion dollar national and international conglomerate with interest in television, radio, wireless services and outdoor advertising. It should be mentioned that while the 1995, 1996 and 1997 Clear Channel Communications Annual Stockholders Report was included with Eller Media's proposal, only one (1) years worth of Eller Media's financial statement was included in the 1997 Annual Report. Also, Dun & Bradstreet indicated that Eller Media tends to over leverage its self. In spite of these issues, the panel felt that Eller Media's strength lies in the fact that it is an established Orange County company providing bus shelters to several Orange County cities. Eller Media controls approximately 85 percent of the Orange County Market. Also, as indicated above, Clear Channel Communications acquisition of Eller Media appears to bring to the company financial strength and backing. Culver Amherst received the second highest score in the category of ability to perform the contractual obligations. This was due to a number of factors. First, Culver Amherst is new to the Orange County market and therefore is not as well known as Eller Media. Second, review of three (3) years of Culver Amherst financial statements reflects a relatively new company in a growth mode. The City was provided by Culver Amherst with copies of letters from two (2) financial institutions indicating a willingness to extent credit to Culver Amherst to meet all financial obligations found within the City's RFP and sample Franchise Agreement. These financial institutions are Communications Equity Associates and Midwest Bankers Group, Inc. Third, the panel noted that Culver Amherst debt is low. Finally, Dun & Bradstreet gave Culver Amherst high marks in its Supplier Performance RCA ROUTING SHEET.doc -8- 04/15/99 1:24 PM REQUEST FOR COUNCIL ACTION MEETING DATE: April 19, '1999 DEPARTMENT ID NUMBER: AD99-3 Review. These factors coupled with the backing of the financial community put the company in a position for growth. In conclusion the review panel -felt that either Culver Amherst or Eller Media could perform under the terms and conditions of the city Franchise Agreement. 3. Determination of the appropriateness and acceptability of the company's' approach and work plan for the installation, maintenance and repair, and for the level of in -kind services and innovation the company would bring to the City. Both Eller Media and Culver Amherst have provided information within their proposals regarding (1) Work Plan for Installation of New Bus Shelters and Bus Benches; (2) Proposed Maintenance Schedule; and (3) In -Kind Services and Innovation. The following is a brief summary of the information provided by each company. As with the financial analysis, it is assumed for this analysis that either company will install 170 bus shelters and 300 benches. Eller Media Company • Work Plan for Installation of New Bus Shelters and Bus Benches Eller Media has stated that all bus stops within the City (473) will receive either a bus shelter with advertising, bus shelter without advertising, an advertising bench or non - advertising bench. Eller has indicated that the new bus shelters will be replaced in lots of twelve (12) bus shelters per week beginning 30 days from the approval of the proposed design. Following this initial installation, Eller Media will install twelve (12) new bus shelters per week until all desired bus shelters are installed. New bus benches will be installed in lots of ten (10). The first ten (10) bus benches will be available sixty (60) days from the approval of the proposed design. Following the initial installation of ten (10) benches, Eller Media will install ten (10) benches per week until the desired number have been installed. After the remaining bench company contract expires with the City, Eller Media is prepared to place their benches in locations approved by the City where the previous Bench Company had their benches. According to the Eller Media proposal, those sites where an amenity is located by another bench company a replacement will be provided as soon as possible upon notification of the removal of the amenity at the end of its term. Eller Media has also committed to ensuring that a smooth transition with the least amount of inconvenience to the public. O Maintenance Schedule Eller Media indicated that it is their intent to make Huntington Beach a showcase on how transit amenity programs are maintained. Maintenance crews will visit each site a minimum of two (2) times per week. Each bus stop with Eller Media amenities will RCA ROUTING SHEET.doc -9- 04/151991:24 PM REQUEST FOR COUNCIL ACTION MEETING DATE: April 19, '1999 DEPARTMENT ID NUMBER: AD99-3 receive a trash receptacle that will be emptied a minimum of two (2) times per week or more often if necessary. While this is a positive recognition within their proposal, it needs to be pointed out that it is a requirement that was included within the City's RFP. Eller Media indicated that crews would be in the City five (5) days a week providing immediate response to any problems that may occur. Locations that require more than two (2) times per week maintenance will be provided that extra attention. All amenities provided by Eller Media will be galvanized to resist the corrosive environment of salt air. Also, all amenities will be power coated to provide the best resistance to etched vandalism. In general, Eller Media has indicated that they are prepared to take all necessary steps to insure a high standard of maintenance. ® In -Kind Services & Innovation With regard to in -kind services, Eller Media proposes to provide services included in the following table: DESCRIPTION OF IN -KIND DOLLAR VALUE OF STAFF REMARKS SERVICES BEING IN -KIND SERVICES OFFERED Install thirty (30) new non- Each non -advertising bus shelter These non -advertising bus advertising bus shelters. costs $5,000. Value over the shelters would most likely be term of the ten-year Franchise placed within the coastal zone Agreement is $150,000 where City ordinance prohibits placement of advertising within the public right-of-way. Install thirty (30) new public Each new public service bus Bus shelters will be used to service bus shelters. shelter costs $6,500. Value over promote City events and the term of the ten-year programs (i.e. DARE, Neigh - Franchise Agreement is hood Watch, Fire Protection, $195,000. Special Events, etc. Provide.sixty (60) panels of The value of the sixty- (60) If the City would forgo the non - space each month for the panels is based on a panel rate advertising and public service entire term of the Franchise of $350 per panel. Total yearly announcement bus shelters in Agreement on public service value to the City is $273,000 per favor of the proposed cash shelters. year or $2,730,000 over the term amount of $345,000, then this of the ten-year Franchise in -kind offer would disappear. Agreement. Staff would recommend that the City Council forgo the cash in favor the sixty- (60) bus shelters. Provides 150 posters per The value of each poster is All posters would be used on year. $150. 150 posters per year the thirty- (30) public service would have a value of $22,500 announcement bus shelters. per year or $225,000 over the Poster design, printing, hanging term of the Franchise and removing would be at no Agreement. cost to the City. RCA ROUTING SHEET.doc -10- 04/15/99 1:24 PM REQUEST FOR COMM ACTION MEETING DATE: April 19, 1999 DEPARTMENT ID NUMBER: AD99-3 DESCRIPTION OF IN -KIND SERVICES BEING OFFERED DOLLAR VALUE OF IN -KIND SERVICES STAFF REMARKS Provide two painted bulletins Two bulletins and their pro- This-in-kind,service would be 14' x 48' along with duction are valued at $30,500 coordinated with the Huntington production. per year or $305,000 for the term Beach Visitor & Conference of the Franchise Agreement. Bureau. Provide thirty (30) bus shelter Value of this offer is $126,000 This in -kind service would be panels outside the City in per year, $1,260,000 over the coordinated with the Huntington various areas throughout term of the ten-year Franchise Beach Visitor & Conference Southern California. Agreement. Bureau. In conclusion, the value of the in -kind services being offered by Eller Media in exchange for the City entering into a ten-year Franchise Agreement with them is estimated by Eller Media to be worth $4,865,000. CULVER AMHERST, LLC ® Work Plan for Installation of New Bus Shelters and Bus Beaches Culver Amherst would submit permit applications to the City during the thirty- (30) day notice given to Eller Media. Culver Amherst has fifty- (50) bus shelters in stock that are scheduled for Huntington Beach if they are awarded the Franchise Agreement. Culver Amherst is prepared to install these fifty (50) bus shelters beginning May 3, 1999. Culver Amherst would work with the City the first sixty- (60) days of the program to ensure all permits request were completed. Culver Amherst would install fifty (50) bus shelters per month until the City's desired quantities have been installed. Upon approval of City permits, Culver Amherst is prepared to install bus benches at a rate of 100 units per month until the City's desired quantity have been installed. According to Culver Amherst, installation of bus shelters and bus benches will begin on the first day that the City provides free and clear access to Culver Amherst. • Maintenance Schedule Culver Amherst has indicated that following the installation of a bus shelter or bus bench a crew will visit the site every day for a thirty- (30) day period. This will allow Culver Amherst to establish a maintenance requirement profile and thereby plan out the most efficient routes for the service team. Culver Amherst has indicated that all shelters and benches will be visited a minimum of two (2) times per week. Sites requiring extra attention will be serviced more frequently. Scheduling of maintenance service crews will be based on the results of initial and ongoing route analysis. BUSSHEL.DOC -11- 04/15/99 2:13 PM REQUEST FOR COUNCIL ACTION MEETING DATE: April 19, 1999 DEPARTMENT ID NUMBER: AD99-3 Culver Amherst has taken an option on an industrial building in the City of Huntington Beach pending award of the Franchise Agreement to them by the City Council. The building is located at 15400 Graham Street. Culver Amherst plans to use this Huntington Beach location as their sales and maintenance operations headquarters. Culver Amherst will establish a phone number that will be staffed 24 hours per day to receive complaints, emergencies and sales inquiries. The phone number will be posted on each bus shelter and bench. The phone line will be activated prior to the installation of the first units. Complaints will be responded to within 24 hours of receiving the complaint. Serious or urgent complaints will be responded to as soon as is physically possible and no later than 24 hours from the time the complaint is first received. a In -Kind Services & Innovation With regard to in -kind services, Culver Amherst proposes the services included in the following table: DESCRIPTION OF IN -KIND DOLLAR VALUE OF STAFF REMARKS SERVICES BEING OFFERED IN -KIND SERVICES Provides fifteen (15)-advertising A $33,750 per year value to the While this is an in -kind service, panels in Huntington Beach for City or a value of $337,500 for it is a requirement of the City's three (3) four -week segments the life of the ten-year Request For Proposal. per year for the duration of the Franchise Agreement. ten-year Franchise Agreement. Provide an additional 100 A $ 750 value per panel or Use of panels will be divided advertising panels per year $75,000 per year value to the between the Public Information within and outside the City of City, or a value of $750,000 Office and the Huntington Huntington Beach over the life of the ten-year Beach Visitor & Conference Franchise Agreement. Bureau for use to promote the City of Huntington Beach in markets outside of the City. Provide the City design, A $150 value per poster or a 45 of the posters per year printing, installation and $30,000 value per year to the would be used for the fifteen - removal of 200 public service City, or a $300,000 value over (15) advertising panels that are posters per year at no charge the life of the ten-year required in the City's Request to the City. Franchise Agreement. For Proposal. The remaining 155 posters would be available for the additional 100 advertising panels offered above. RCA ROUTING SHEETAOC -12- 04/15/99 1:24 PM REQUEST FOR COUNCIL ACTION MEETING DATE: April 19, 1999 DEPARTMENT ID NUMBER: AD99-3 DESCRIPTION OF IN -KIND SERVICES BEING OFFERED DOLLAR VALUE OF IN -KIND SERVICES STAFF REMARKS Economic Services Centers -0- While this proposal is consisting of informational innovative, it appears to be kiosks wall signs and bus unrelated to providing street benches. furniture along OCTA designated bus routes. There may also be issues regarding City sign codes. While the proposal shows a level of innovation, it is more suited for a separate discussion and agreement, and the value of the Economic Development Centers as it relates to the Franchise Agreement should not be counted as in -kind services since it does not directly relate to providing street furniture for the bus routes, nor can it be implemented by simply entering into the Franchise Agreement. In conclusion, the value of the in -kind services, less the Economic Development Centers (valued by Culver Amherst at $3,300,000) being offered by Culver Amherst in exchange for the City entering into a ten-year Franchise Agreement with them is $1,387,000. 4. Review of the company's qualifications, knowledge and experience with projects of a similar nature, including past performance and references. • Culver Amherst The panel reviewed each of the five (5) proposals submitted, and both Culver Amherst and Eller Media received high scores in this category. Culver Amherst brings an experienced team of individuals with an array of experience in the area of providing bus shelters to municipal government. While the company is relatively new, the personnel that will work with the City of Huntington Beach has many years of experience in the field of advertising, and most particularly in the management of bus shelters. The City has contacted the references provided by Culver Amherst and all have spoken highly of the Company and their dealings with company Principals. The Culver Amherst Management Team are very familiar with the Southern California market, having had a bus shelter business (approximately 1,000 bus shelters) in the Los Angeles area during the early 1980's (Shelter Media). ® Eller Media RCA ROUTING SHEET.doc -13- 04115/991:24 PM REQUEST FOR COUNCIL ACTION MEETING DATE: April 19, 1999 DEPARTMENT ID NUMBER: AD99-3 Eller Media acquired and maintains 240 bus shelters in the City of Huntington Beach. Eller Media's presence in Huntington Beach began in 1997 with acquisition by Eller Media of three (3) shelter companies in late 1996 and early 1997. The City Council approved the assignment of two of the three existing bus shelter contracts (Shelter Vision, and Patrick Target Media) to Eller Media on February 3, 1997, the same year that Eller Media was acquired by Clear Channel Communications. Eller Media absorbed employees from these three (3) (including Media Display) acquired bus shelter companies, and in part some of these employees make-up the Eller Media Management Team which would be providing services to the City of Huntington Beach if Eller Media was awarded the Franchise Agreement by the City Council. The Eller Media Management Team is composed of individuals with many years of experience in bus shelter and outdoor advertising programs. Eller Media's strength lies not only in a knowledgeable and experienced team, but also in their presence in the Southern California Region. They currently control approximately 85 per cent of the Orange County bus shelter market. The many references that were contacted throughout the County spoke well of Eller Media and the service that they have received from the company. However, there were cities that currently have contracts with Eller Media who were less than enthusiastic about Eller Media and the quality of their service. During the time that Eller Media has provided service to the City Huntington Beach, the City has had a good relationship with Eller Media. However, the City's' experience has included some problems in relation too timely payments, lack of efforts to illuminate bus shelters in accordance with existing agreements, and a less than acceptable standard of maintenance. Even thought these types of problems have been present for several years, the problems have continued under the ownership of Eller Media Increase in Public Works Department Table of Organization One of the drawbacks in previous Bus Shelter Contracts was a lack of attention by the city to what was occurring within the city's public right of ways regarding the placement of bus shelters and bus benches. To ensure acceptable levels of monitoring and management of the city rights of ways, and to ensure proper level of administration and enforcement of the Franchise Agreement staff is recommending the appropriation of $83,620 from the Franchise Agreement for Transit Advertising Services revenues to pay for one new position and one vehicle for the Public Works Department. The position that is being recommended to be filled is a Traffic Technician at an annual cost (Salary including benefits) of $58,620. This position would be responsible for the daily inspection of the bus shelters and bus benches and to insure compliance with the terms of the Franchise Agreement. In additio to the administration of the Franchise Agreement the Traffic Technician would a investigate new locations and relocations of bus shelters and benches, and is installation, electrical, & construction permits. The position would also work with the Ci Finance Division of the Administrative Services Department to insure franchise paym6, are received by the city and to respond to other city department inquires, responc. RCA ROUTING SHEET.doc -14- 04/15/99 ` REQUEST FOR COUNCIL ACTION MEETING DATE: April 19, 1999 DEPARTMENT ID NUMBER: AD99-3 citizens inquires, coordinate with the franchise, and interface with the Orange County Transit Authority (OCTA) on bus shelter and bench issues. Environmental Status: Not Applicable. Attachment(s): 1 2 3 n 5. A Copy of City's Request for Proposal, Sample Franchise Agreement and Amendments to Same Result of City Staff Evaluation of the five proposals received from Eller Media, Chancellor, Culver Amherst, Gateway Outdoor, & Outdoor Systems Memo from Bob Hidusky, Traffic technician to Richard Barnard, Deputy City Administrator, dated March 22, 1999 regarding OCTA Bus Ridership. Memos from Bob Hidusky, Traffic Technician to Richard Barnard, Deputy City Administrator, dated March 22 & 23, 1999 regarding Reference Checks for Culver Amherst and Eller Media. Dun & Bradstreet Business "Supplier Performance Review" for Culver Amherst and Eller Media. Copy of Eller Media Proposal 1 7. 1 Copy of Culver Amherst Proposal RCA Author: Richard Barnard RCA ROUTING SHEET.doc -15- 04/15/99 1:24 PM GTON BEACH PUBLIC WORKS DEPARTMENT REQUEST FOR PROPOSAL For TRANSIT ADVERTISING SERVICES February 5, 1999 The City of Huntington Beach invites your proposal for TRANSIT ADVERTISING SERVICES per the attached Proposal Terms and Conditions and Scope of Service. CLOSE TIME AND DATE Your signed Proposal must be submitted in a sealed envelope marked "RFP#990305-2" prior to: Time: 4:00 P.M. Date: March 5, 1999 Submit five (5) signed copies of your entire proposal to the following address: City of Huntington Beach_ Purchasing Division 2000 Main Street PO Box 190 Huntington Beach CA 92648 Request for Proposal # 990305-2 LATE PROPOSALS WILL NOT BE ACCEPTED. FAXED PROPOSALS WILL NOT BE ACCEPTED. 1 jmp/busshelr/Hp/02/04/99 PRE -PROPOSAL MEETING A pre -proposal meeting will be held to answer any questions. Time: 1:30 - 3:00 P.M. Date: February 16, 1999 Location: 2000 Main Street, Huntington Beach, Room B-8 OPENING Please note there will be no public opening of proposals. Prices and other proposal information shall not be made public until the proposal is awarded. At that time the executed contract will become public information. Additional information may be obtained by contacting Richard Amadril at (714) 536-5521 EXAMINATION OF PROPOSAL Each vendor is responsible for examining the Request for Proposals and submitting its proposal complete and in conformance with these instructions. DISCREPANCIES IN PROPOSAL DOCUMENTS Should vendor find discrepancies in or omissions from the Request for Proposals, or if the intent of the Request is not clear, and if provisions of the specifications restrict vendor from submitting a proposal, they may request in writing that the deficiency(s) be modified. Such request must be received by the City's Purchasing Central Service Manager three (3) days before proposal opening date. All vendors will be notified by addendum of any approved changes in the Request for Proposal documents. ORAL STATEMENTS The City of Huntington Beach is not responsible for oral statements made by any of their employees or agents concerning this Request for Proposals. If the vendor requires specific information, vendor must request that the City of Huntington Beach supply it in writing. RIGHT TO REJECT City reserves the right to reject at any time any or all proposals, or parts thereof, and to waive any variances, technicalities and informalities which do not impair the quality, utility, durability, or performance of the items. FORM OF PROPOSAL AND SIGNATURE The proposal must be made on this form only. The proposal should be enclosed in a sealed envelope, showing the Request for Proposal # in the lower left corner and addressed to the City of Huntington Beach, 2000 Main Street, Huntington Beach CA 92648, Attn: Purchasing. This bid must be signed by an officer or authorized employee. Proposals may be rejected if this form is not signed. 2 jmp/busshe1t/rfp/02/04/99 SUBMISSION DATE AND WITHDRAWAL OF PROPOSALS Each proposal must be delivered to the City of Huntington Beach, 2000 Main Street, Huntington Beach CA 92648, Attn: Purchasing and received on or before the due date and time stated. Proposals must be withdrawn without prejudice, providing the Purchasing Division receives the written request no later than the time set for opening proposals. Withdrawals will be returned to vendor unopened. FAXED PROPOSALS ARE NOT ACCEPTABLE. SELECTION PROCESS "The method by which the.Ci+v will select for this effort is as follows: Proposals will be reviewed by the Selection Committee, and a determination will be made as to who is to be interviewed by the Selection Committee". After selection of the successful vendor, the City will negotiate final contract terms. The Selection Committee will judge proposals on the following criteria: Revenue to City Ability of vendor to perform contractual obligations. Appropriateness and acceptability of approach and workplan. , Qualification/Knowledge of and experience with similar projects. ;2_0 CI TY iNFORMA TION The City has a population of approximately 190,000 and covers 28 square miles. Based on population, this makes Huntington Beach the third largest city in Orange County and the 15th largest city in the State of California. The City has 81/2 miles of beaches and was host to over 11 million visitors in 1997. The City currently has 473 bus stops. PROJECT DESCRIPTION The City is requesting proposals to enter into a non-exclusive franchise agreement for the provision of transit advertising services in the public -right-of-way. Proposals will be accepted from qualified transit advertising services companies. The City reserves the right to request and have installed and maintained, additional non -advertising bus shelters or non -advertising bus benches as it deems appropriate. Transit advertising services can potentially be placed anywhere a bus stop, as identified by the Orange County Transit Authority, exists in the city. See Map #1 attached. However, HB Municipal Code Section 12.36.030 restricts advertising in the Coastal Zone and the Downtown Specific Plan area and will not be allowed in the Downtown Specific Plan area (Map #2A) or the Coastal Zone (Map #213). In addition, the proposal must conform to the additional regulations set forth in HB Municipal Code 12.36 attached. 3 jmp/busshe1t/rfp/02/04/99 The undersigned certifies that he or she has read all documents related to this Request and understands all terms and conditions expressed in the Request for Proposal (RFP) and related documents. With that understanding, the undersigned proposes to the City of Huntington Beach the following: 1. Introduction. Describe your understanding of the proposed project. Identify the primary vendor, if this is a joint proposal, and describe that firm's qualifications and relevant experience for completing the proposed Scope of Services. Identify all joint applicants and subcontractors and briefly discuss their qualifications and relevant experience for completing the proposed project. 2. Personnel. Identify the Project Manager, key personnel, subconsultants, and sub- contractors to be assigned to the project and their qualifications and relevant experience, including past business affiliations related to this industry, titles and years spent with prior companies. The designated Project Manager shall be the primary liaison with the City for the duration of the contract. The designated Project Manager shall function in this capacity as long as he/she remains employed by the firm. 3. Describe your proposed methodology for accomplishing the goals of the City of Huntington Beach. Applicants are encouraged to recommend alternatives, which may enhance the overall quality of the project. 4. References. Provide name and phone numbers of three references that are currently using the service requested in this RFP. Select a mix of long-standing and recent customers. 5. Background. Each vendor shall submit with their proposal copies of their annual financial reports for the past three (3) years. These reports will be used by the City to determine the financial strength of the vendor. 6. Provide a photograph of the type of transit advertising services that you would like to install and you think would complement the City of Huntington Beach and improve the streetscape. Include specifications of shelter and/or bench. 7. How long has your company provided the services being requested in this RFP? Be specific as to the types of services provided (e.g. Shelters vs. benches). 8. Specify the number of customers using your service. Provide a list of all the cities you are currently doing business with as well as a contact person and phone number. 9. Identify other public entities, which are receiving similar services from vendor. Describe the length of the relationship with the entity, the method of compensation, and the number of months the entity received the guaranteed minimum monthly payment and/or the percentage of gross advertising revenue during the length of the relationship. 10. Maintenance Schedule. Describe the maintenance and repair schedule consistent with the requirements set forth in the proposed franchise agreement attached to be implemented upon installation of the transit services. Identify inspection schedules, response times, and any subcontractors who may be used to meet the maintenance duties of the vendor. 4 jmp/busshe1 t/rfp/02/04/99 11.Installation Schedule. Describe the methodology and schedule of installation of services upon execution of the agreement, incorporating the. terms and conditions of the existing agreements attached hereto. Identify when installation will begin, how long services will be unavailable, and when the initial annual payment will be submitted pursuant to paragraph 15 of the franchise agreement. 12. Compensation. Identify the proposed "COMPENSATION TO CITY' (as defined in the proposed Agreement). The compensation is on a per month basis for each advertising shelter plus a non -advertising bench, an advertising shelter only, or an advertising bench only, and must be provided in the spaces below. Contract Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Potential Extension Year 11 Year 12 Year 13 Year 14 Year 15 Guaranteed Minimum Monthly Payment (Shelter + Non Ad Bench) Guaranteed Minimum Monthly Payment (Shelter Only) Guaranteed Minimum Monthly Payment (Ad Bench Onlv) Plus, Percentage'Of Gross Advertising Revenue 13. The City may request the expansion of the proposed program to include additional non - advertising bus shelters and/or non -advertising bus benches. Applicants are required to identify the "cost" of the installation and maintenance of additional non -advertising shelters and/or non -advertising bus benches as a reduction in the Guaranteed Minimum Payment. The proposed reduction for each new, non -advertising shelter and/or non -advertising bench must be provided in the space below. Also include the proposed reduction for a group of non -advertising shelters and/or benches as shown below. $----------------------- for addition of a single non -advertising shelter y u jmp/busshei drfp/02/04/99 $----------------------- for addition of a single non -advertising bench $--`------------------- for addition of a group of 1 -10 non -advertising shelters $----7------------------ for addition of a group of 1 -10 non -advertising benches $----------------------- for addition of a group of 11 - 20 non -advertising shelters $----------------------- for addition of a group of 11 - 20 non -advertising benches $----------------------- for addition of a group of 21 - 30 non -advertising shelters $----------------------- for addition of a group of 21 - 30 non -advertising benches $----------------------- for addition of a group of 31 - 40 non -advertising shelters $----------------------- for addition of a group of 31 - 40 non -advertising benches $----------------------- for addition of a group of 41 - 50 non -advertising shelters $----------------------- for addition of a group of 41 - 50 non -advertising benches $----------------------- for addition of a group of 51 - 60 non -advertising shelters $----------------------- for addition of a group of 51 - 60 non -advertising benches $----------------------- for addition of a group of 61 - 75 non -advertising shelters $----------------------- for addition of.a group of 61 - 75 non -advertising benches $----------------------- for addition of a group of 76 - 100 non -advertising shelters $----------------------- for addition of a group of 76 - 100 non -advertising benches 14. Vendor Information Signature Printed Name Firm Name Address City/State Phone FAX Date E-mail Address Website URL PLEASE ATTACH PROPOSAL AND ANY ADDITIONAL DOCUMENTS TO SUPPORT THE INFORMATION PROVIDED ON THIS SHEET. APPLICANTS ARE ENCOURAGED TO RECOMMEND ALTERNATIVES WHICH MAY ENHANCE THE OVERALL QUALITY OF THE PROJECT. 6 j mp/busshelt/rfp/02/04/99 GATE:-31-98 CITY OF HUNTINGTON BEACH DEPARTMENT OF PUBLIC WORKS MAP -# 1 HUNTINGTON BEACH rTTY MAP DATE: 7-31-98 CITY OF HUNTINGTON BEACH DEPARTMENT OF PUBLIC WORKS MAP #2A DOWNTOWN SPECIFIC PLAN AREA DATE: 7-31-98 CITY OF HUNTINGTON BEACH DEPARTMENT OF PUBLIC WORKS low MAP #2B COASTAL 7nNp _ Huntington Beach Municipal Code 12.36.010-12.36.030(e) Chapter 12.36 BENCHES, TELEPHONE BOOTHS, AND OTHER PUBLIC SERVICE ITEMS (581-4/52, 2292-8178, 2574-10182, 2935-4/88, 3401-10/98) Sections: 12.36.010 Definitions 12.36.020 Franchise/Agreement 12.36.030 Lirpitations on Advertising in Public Rights -of -Way 12.36.040 Locational Criteria --Telephone Booths 12.36.010 Definitions. In this chapter, unless from the context a different meaning is intended, or unless a different meaning is specifically defined and more particularly directed to the use of such words: (a) "Bench" means a seat located upon public property, along any public way, for the accommodation of passersby or persons awaiting transportation. (2935-4/88) (b) "Street" means any public thoroughfare or way including the sidewalk, the parkway and any other public property bordering upon a public way. (581-4152, 2935-4/88) 12.36.020 Franchise/Agreement. No person shall install or maintain any bench, transit shelter, telephone booth or other public service item which incorporates advertising panels on any street unless installed in accordance with a franchise agreement granted by the City Council. The provisions of this section shall not be construed to prohibit the installation and maintenance of benches, transit shelters, telephone booths or other public service items without advertising . panels on any street, provided that a permit for each item has been obtained pursuant to section =.12.12.020 of the Municipal Code. Any bench which is in violation of the provisions of this section at the time of adoption of this ordinance shall be removed within thirty (30) days of the effective date of this ordinance. (581-4/52, 2292-8/78, 2574-10/82, 2935-4/88) 12.36.030 Limitations on Advertising in Public Rights -of -Way. The following regulations shall limit advertising copy panels which are placed within the public right-of-way in accordance with this chapter and Section 12.12.020 of the Municipal Code: (a) Advertising shall be limited to product or service identification and to businesses which are not located on adjacent properties. Copy which includes arrows or directions to a location shall be prohibited. (b) No advertising for cigarettes or alcoholic beverages shall be permitted. (c) The maximum allowable advertising copy shall be two, twenty-four (24) square foot panels for bus benches/shelters. For telephone booths or structures, the maximum shall be two, eight (8) square foot panels. (d) In conformance with the City's Coastal Element, public service items located within the Coastal Zone shall not contain advertising for private businesses or services. (e) In conformance with the City's Downtown Design Guidelines, public service items located within the Downtown Specific Plan area shall not contain advertising for private businesses or services. 10/98 FRANCHISE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND FOR TRANSIT ADVERTISING SERVICES WHEREAS, this Agreement (the "Franchise Agreement" or "Agreement") is made and entered into as of the day of 2199 , by and between the City of Huntington Beach, a municipal corporation hereinafter referred to as "CITY" and , a corporation, (hereinafter referred to as "GRANTEE". WITNESSETH WHEREAS, the CITY is authorized to grant, renew and deny franchises for the installation, operation and maintenance of transit advertising services and otherwise regulate encroachment into the public -right-of-way within the city's boundaries by virtue of federal and state statutes and court rulings, by the CITY's police powers, by its authority over its public rights of way and by other CITY powers and authority; and WHEREAS, the GRANTEE has agreed to comply with the applicable regulations pertaining to transit advertising services, including but not limited to Huntington Beach Municipal Code Chapter 12.36 entitled "Benches, Telephone Booths, and Other Public Service Items" (hereinafter "Chapter 12.36"); and WHEREAS, GRANTEE has the financial, legal and technical ability to provide the services, facilities and equipment as set forth in this Agreement granting a franchise; and WHEREAS, the terms and conditions of this Agreement granting a franchise renewal are reasonable to meet the future transit advertising related needs and interests of the community, taking into account the cost of meeting such needs and interests; and NOW, THEREFORE, in consideration of the promises and agreements hereinafter made and exchanged, the parties covenant and agree as follows: 1. GRANT OF FRANCHISE Pursuant to the authority provided in Chapter 12.36, the CITY hereby grants a non- exclusive transit advertising services franchise to GRANTEE pursuant to the terms and conditions of this Agreement (hereinafter the "Franchise"). To the extent the provisions of Chapter 12.36 are inconsistent with those of this Agreement, the provisions of this Agreement shall prevail. 1 g:jmp/busbench/bussheld2/4/99 2. FRANCHISE AREA. The franchise area for this Franchise shall be all property within the boundaries of the City of Huntington Beach as they exist on the effective date of the Agreement, and as the boundaries may exist during the Franchise period, through annexation. GRANTEE shall provide transit advertising services and transit non -advertising services only at those sites specifically, identified in Exhibit "A" attached -hereto and incorporated by reference. GRANTEE shall provide a list of shelter and/or bench locations to the Stops and Zones Department of OCTA. 3. TERM OF AGREEMENT This Agreement shall commence on the _ day of , 1999, (the "Effective Date") and shall continue in effect for a period of ten (10) years (the "Term"). The Term shall expire on the day of I , unless this Agreement is terminated earlier, pursuant to the provisions of this Agreement, or otherwise according to law. At the CITY'S option during, or at the expiration of the term, the contract may be extended for an additional five (5) years, or for up to five (5) additional one (1) year increments. 4. COMPENSATION TO CITY For each year during the term of this Agreement, GRANTEE agrees to pay to CITY the greater of a guaranteed minimum payment ("Guaranteed Minimum Payment") or a stated percentage of the gross advertising revenues ("Percentage Revenue") derived from advertising shelters and/or benches within the CITY. The Guaranteed Minimum Income per shelter and/or bench per month and applicable Percentage Advertising Revenue for each year of this Agreement are set forth in Exhibit `B" attached hereto and incorporated by reference. If at any time during the Term, GRANTEE and CITY agree to add additional shelters and/or benches with advertising to the number of shelters/benches initially authorized, the Guaranteed Minimum Payment shall be increased on a revenue per shelter and/or bench per month basis. If there is any increase in shelters and/or benches the.performance bond shall be increased by the agreed upon amount. Any decrease in shelters and/or benches shall not decrease the performance bond amount. 5. TRANSIT SERVICES STANDARDS A. All bus shelter and bench improvements shall meet the minimum design requirements as defined in the City of Huntington Beach Standard Plans, and the Orange County Transportation Authority's "Bus FACILITMs HANDBOOK" dated April, 1996, and made available through that agency and is made a part hereof by this reference. All work performed within the CITY boundary shall conform to City Standard Plans on file, the latest edition of Standard Specifications For Public Works Construction (Green Book), the latest edition of the National Electric Code (NEC), or at the direction of the Director of Public Works or his/her designee. A minimum four inch (4") concrete slab shall be placed at all bench and shelter locations. Concrete mix design shall be 520-C-2500 (Type V). This slab is to be placed in accordance with the Orange County Transportation 2 g.jmp/busbench/busshe1d2/4/99 Authority's `Bus FACILITIES HANDBOOK" (figures 26 and 29) dated April, 1996, for transit shelters and related street furniture, and the requirements of the Americans with Disabilities Act (ADA) of 1990. In addition, all work must comply with the conditions of the Public Works Permit issued for each individual location, and any and all other conditions of the Agreement. B. Each shelter or bench site design shall be compatible with the landscaping in its vicinity, in a manner satisfactory to the Director of Public Works or his/her designee. Bus shelters and benches to be located on an existing landscaped slope will require special design and landscaping modifications. All bus shelters and benches shall have consistent design within a community. C. GRANTEE shall permanently affix in a conspicuous area on each shelter and/or bench an owner identification tag which includes GRANTEE'S business name and 24 hour service telephone number. D. GRANTEE shall supply the approved trash receptacle at each site in accordance with the site specifications, or as approved by Director of Public Works or his/her designee. If needed, a second trash receptacle shall be installed at the request of the Director of Public Works or his/her designee. Trash receptacles shall not block the bypass space between the sidewalk, shelterlbench, and the curb face. E. If required, the GRANTEE will obtain written permission to encroach from the underlying property owner (other than the CITY), prior to issuance of any permit for any shelter and/or bench. No telephones, vending machines, newsracks; or any other devices not specifically authorized pursuant to this Agreement shall be permitted to be installed on, or adjacent to the shelters without the prior written authorization of the Director of Public Works or his/her designee. below. 6. DESIGN STANDARDS; AMENITIES GRANTEE shall provide said services consistent with the design standards set forth A. SHELTER DESIGN STANDARDS 1. The shelter's structural design(s) shall be plan checked and approved by the City of Huntington Beach prior to implementation of the installation program. 2. A metal structure thirteen feet (1 Y) or seventeen (17') feet long with a five foot (5') roof line. The structure shall have a minimum of four columns to support the roof and be enclosed on three sides with tempered, tinted glass, and an advertising panel at the end farthest from the bus' approach. The shelter shall be lit from dusk to dawn by an overhead fluorescent light with a control timer or photo electric cell. Electrical service shall be 120 Volt and shall be underground. 3. Each shelter will house a matching eight foot (8') bench with a back. The bench should have arms only at both ends. The shelter shall also accommodate a minimum space of 48 3 g jmp/busbench/busshelt/2/4/99 inches by 48 inches for persons in wheelchairs. Each shelter shall also have a matching trash receptacle with an inner and outer lining, not including plastic garbage bags, to prevent leaks and spills. All furniture shall be anchored to the site or otherwise attached to the shelter to prevent theft and/or vandalism. 4. The name of the nearest cross street or local feature shall be placed on the shelter's roof facia on the approach end of the shelter consistent with City of Huntington Beach standards, or as directed by the Director of Public Works or his/her designee. The GRANTEE's name and 24-hour phone number shall be displayed for emergency purposes within the interior of each shelter. 5. Each shelter or bench shall be issued its individual permit application, shall specify the shelter or bench standard plan number to be used, and will be accompanied by an 8-1/2" x 11" location drawing, signed and stamped by a California Registered Civil or Structural Engineer. The location drawing shall contain a minimum 40 foot to 1 inch scale (1"=40' scale) representation of the proposed shelter site covering the area from the property line to the street centerline at the intersection. Mid -block sites can be shown with broken line ties. The drawing shall also give all necessary street dimensions such as: sidewalk width, street width, etc. All substructures within the sidewalk area, street lighting electroliers, fire hydrants, storm drain catch basins, trees, vaults, gas lines, water lines, electrical, and any other sidewalk facility or street furniture must be shown on the location drawing. A no - scale key map must also be included on the location drawing. 6. Minimum setback of the shelter structure, including roof, from the.face of curb shall be two feet. 7. Any shelter located less than 48 inches from the curb face shall have rear access at the ad -panel end of the shelter. 8. Every shelter shall be illuminated from dusk until dawn by an overhead fluorescent light fixture concealed in the roof structure with a control timer and/or a photo electric cell. GRANTEE shall apply for, and obtain at its own cost, any necessary electrical service permits from the electrical provider. Metered electrical service charges shall be at GRANTEE's sole expense. 9. Back and side panels shall be constructed of tempered tinted glass or other safety devices to protect pedestrians by enhancing visibility. The CITY reserves the right to substitute the optional materials offered by the GRANTEE on a case -by -case basis. 10. Where existing curbing is found to be in good condition and presents no hazard to bus stop users, curbing shall not be disturbed during the installation of the bus shelter. Any required conduit shall be passed under the curb in a manner that does not affect the curbing. Where curbing is found to be in poor condition sufficient to cause a hazard to bus stop users, the curb and gutter shall be replaced as part of the site improvements at GRANTEE's 4 g:jmp/busbench/busshelt/2/4/99 sole expense. The CITY's agent shall be the deciding judgment on the potential hazard determination. B. NON -SHELTER FURNITURE DESIGN STANDARDS For those bus stops without a bus shelter identified by the CITY, the *GRANTEE shall install an 8-foot bench with a back and a complimentary trash receptacle with an inner and outer (non -wire mesh) lining to prevent leaks and spills. The bench shall have arms at both ends and shall be anchored to the site. 7. SECURITY FOR PERFORMANCE The purpose of the performance security is to insure faithful performance of GRANTEE'S covenants for construction, maintenance, repair or replacement of the shelters, timely payment of all revenues due the CITY (including without limitation, permit fees, business license fees, and advertising revenues), and restoration of shelter and/or bench sites to the condition existing prior to installation of the shelters and/or benches, whenever a shelter and/or bench is removed or relocated. a. The GRANTEE shall establish a letter of credit in the sum of one thousand dollars ($1,000.00) per shelter location within forty-five (45) days after the effective date of this Agreement. The letter of credit shall be in a form acceptable to the City Attorney. The GRANTEE shall restore to the letter of credit any amount the CITY withdraws as liquidated damages, within thirty (30) days after the CITY withdraws the money. The GRANTEE may request that the CITY reduce the letter of credit from one thousand Dollars ($1,000.00) per shelter to five hundred dollars ($500.00) per shelter at any time after CITY has verified the completion of the installation of all shelters and benches pursuant to the Agreement, and that GRANTEE is not in material breach of the Franchise. The CITY shall complete its review of GRANTEE's compliance with these conditions within sixty (60) days after receipt of the GRANTEE's request. The GRANTEE may provide cash or a cash equivalent in substitution of the letter of credit including without limitation a certificate of deposit or savings account, the rights of which have been signed over to the CITY. Any interest accrued on such cash or cash equivalent security shall be paid over to the GRANTEE. GRANTEE's recourse, in the event GRANTEE believes any taking of funds from the Letter of Credit is improper, shall be through legal action, after the Letter of Credit has been drawn upon. b. Surety Bond. As an alternative to establishing a Letter of Credit, the GRANTEE may obtain a surety bond acceptable to the CITY, to guarantee the sum of one thousand dollars ($1,000.00) per shelter. The Surety Bond shall be in a form acceptable to the City Attorney and shall be submitted concurrently with the effective date of this Franchise Agreement. The form of the Surety Bond shall contain, at a minimum: gjmp/busbench/busshe1d2/4/99 (1) That the surety is licensed in California and maintains a Best's Financial Size Category of IX. (2) That the surety holds a Certificate of Authority from the United States Department of the Treasury as an acceptable reinsuring company pursuant to Department Circular 570 as published in the Federal Register. (3) The surety shall have a Best's insurance rating of not less than A. (4) The principal amount of the obligation shall be one thousand dollars ($1,000.00) per shelter. (5) The obligation by the surety to pay the principal amount to the CITY is unconditional pursuant to Civil Code Section 2806. (6) The liability of the surety for the payment of the principal amount accrues immediately upon the default of the GRANTEE, and without demand or notice pursuant to Civil Code Section 2807. (7) The surety shall waive any defense based on or arising out of any defense of the GRANTEE other than payment in full of the principal amount including without limitation a defense based on or arising out of the disability of the GRANTEE, the unenforceability of the principal obligation, or any part thereof, or any change, renewal or acceleration of the terms of the principal obligation. Further, said surety shall waive any right to require the CITY to proceed against the GRANTEE or pursue any other remedy in the CITY's power. Further, said surety shall have no right of subrogation and shall waive all presentments, demands for performance, notices of protest, notices of dishonor and notices of the acceptance of the Surety Agreement. (8) The surety shall also undertake to pay reasonable attorneys' fees and other costs incurred by the CITY in enforcing the Surety Bond. (9) GRANTEE shall require said surety to submit to the CITY documentation evidencing the above requirements and any documentation required of the GRANTEE by the surety for the purpose of ascertaining GRANTEE's financial condition. 8. PERFORMANCE SCHEDULE: LIQUIDATED DAMAGES The following performance schedules shall be adhered to by the GRANTEE. Any deviation from these schedules without written CITY approval, except on account of those events specified in Section 8, shall constitute a material breach of contract, and the GRANTEE shall be liable to the CITY for liquidated damages as set forth below. 6 gimp/busbench/bussheld2/4/99 GRANTEE will submit permit applications for all locations identified in Exhibit A attached hereto and incorporated by reference to the CITY'S Department of Public Works within thirty (30) days of the Agreement's "Effective Date". Installation of the first bus shelter and/or bench shall begin no later than days following issuance of permits. The constWction/electrical inspector shall be notified 48 hours in advance of all construction/electrical work. The number to call for notification is (714) 536-5431 unless a different number is provided in writing by the CITY. The starting date given at time of notification will be the beginning of the 7 working days. Installation of an individual shelter, including all shelter amenities, except: electrical connections, shall be completed within seven (7) calendar days after work has commenced on that shelter. Electrical connections shall be completed within fifteen (15) calendar days after work has commenced. Failure to perform as required will result in liquidated damages being assessed by the CITY as provided below. Construction and installation of all advertising shelters and/or benches, non -advertising shelters and/or benches, including electrical connections, shall be completed within C .. J months following the Effective Date. At locations where installation is temporarily deferred, installation shall be completed within four (4) months of receiving written directions to proceed from the Director of Public Works or his/her designee. For each failure to satisfy the performance schedule, GRANTEE shall pay to CITY liquidated damages ("Liquidated Damages") of one hundred dollars (S100) per failure, per day_ The failure to meet the performance schedule as to each separate shelter and/or bench shall be deemed a separate failure subject to a separate Liquidated Damages payment. The parties hereto agree that the amount set forth above as the "Liquidated Damages" constitutes a reasonable approximation of the actual damages that CITY would suffer for each failure to meet the performance schedule, considering all of the circumstances existing on the effective date of this Agreement, including the relationship of the Liquidated Damages amount to the range of harm to CITY and accomplishment of CITY's purpose in entering into this Agreement, the difficulty and impracticability of determining actual damages involving such issues as the dollar damages per shelter or bench per day of delay and the CITY's goals in installing new shelters and benches, and that the proof of actual damages would be costly or inconvenient. In placing its initials at the places provided hereinbelow, each party specifically confirms the accuracy of the statements made above and the fact that each party has been represented by counsel who has explained the consequences of the Liquidated Damages provision at or prior to the time each executed this Agreement. GRANTEE'S INITIALS 7 g jmp/busbench/bussheld2/4/99 CITY'S INITIALS 9. FORCE MAJEURE The time within which the GRANTEE is obligated to commence and to complete construction of shelters and benches shall be extended for a period of time equal in duration to, and performance shall be excused on account of and for, and during the period of, any delay caused by strikes, threat of strikes, lockouts, war, threats of war, insurrection, invasion, acts of God, calamities, violent action of the elements, fire, delays in electrical service provider permit issuance, action or adoption of any regulation, law or ordinance by any governmental agency, precluding GRANTEE'S performance. 10. SHELTERIBENCH MAINTENANCE ANDREPAIR At all times during the term of this Agreement, GRANTEE shall, at its sole expense, maintain all shelters and/or benches, in a neat, attractive, safe, and sanitary manner in accordance to the satisfaction of the CITY'S Director of Public Works or his/her designee. This includes, but is not limited to removal of litter, graffiti, and debris; cleaning of all visible surfaces, and emptying trash receptacles. GRANTEE shall report all maintenance activities in the CITY each quarter. A. GRANTEE shall maintain all shelters, benches, and amenities pursuant to the Maintenance Schedule attached hereto as Exhibit "C". GRANTEE shall also keep the pad and an area within fifteen feet (15') of the shelter or bus bench clean and litter free at all times. Steam cleaning of all shelters, benches, and all furniture will be provided on an "as -needed" basis. No routine maintenance shall be performed during peak hours for 7:00 a.m. to 9:00 a.m., or 4:00 p.m. to 6:00 p.m. B. GRANTEE shall, at its own expense, replace or repair any and all damaged, defaced or worn out shelters, benches, or individual parts thereof to "like new" condition no later than twenty- four hours after discovery by GRANTEE, or notification of such damage or defacement is received by telephone. If the condition of the shelter or bench represents a danger, the GRANTEE shall respond immediately (no later than within 4 hours of notification). GRANTEE shall maintain and furnish a twenty-four hour emergency telephone number. When damage requires emergency removal of an entire shelter, or bench, in order to leave the site in safe condition, the removed fixtures shall be replaced and made fully operational within five (5) working days. C. In the event GRANTEE fails to correct, repair, replace, or remove a shelter or bench as required by this Agreement, CITY may, at its sole discretion, cause the correction, repair, replace, or removal of the shelter or bench. Any costs incurred by CITY shall be paid directly to CITY by GRANTEE within ten (10) days following receipt by GRANTEE of CITY'S invoice. Costs not paid within this time period will be deducted from the security deposit as set forth in Section 6. The security deposit shall be repaid within 30 days. If payment is not received by the due date a late charge of 1.5% per month, compounded monthly, will be added. If payment is not received within 30 days of the due date the GRANTEE will be in default and the Agreement may be terminated immediately. 8 g.jmp/busbench/busshe1t/2/4/99 11. ADVERTISING STANDARDS A:: Shelter advertising shall be limited to two backlit ad panels per shelter. If the side walk/parkway is narrow, access is to be provided by pouring additional slab. Alternative advertising panel designs as required on a site -by -site basis will require the specific approval of the Director of Public Works, or his/her designee. 12.36. B. All advertising shall conform to the requirements of Huntington Beach Municipal Code C. Any proposed advertising to be located on said shelter ad panels shall not: 1. Display the words "STOP", 'DRIVE-IN", "DANGER", or any other word, phrase, symbol or character which may interfere with, mislead, confuse, or direct vehicular traffic. 2. Comprise of rotating, revolving, or flashing lighting devises. 3. Promote material which the CITY in its sole discretion determines is offensive to community standards of good taste. 4. Promote alcohol and/or tobacco products. Beer and wine advertising is acceptable. 5. Promote unsold bus shelter advertising space. 6. Contain "on -site business identification signs", "off -site business identification signs", or "political advertisements". For the purpose of this Agreement, "on -site business identification signs" are defined as bus shelter ad panels immediately adjacent to the business which is the subject of the shelter ad. Business with multiple sites within the CITY are exempt from this ad restriction. "Off -site identification signs" are defined as ad panels that give specific direction to an advertiser's place of business other than the site's address. Restrictions include, but are not limited to indications such as: directional arrows; "one block"; "next right"; etc. D. The Director of Public Works or his/her designee will make the final determination on unacceptable advertising. In the event that an advertisement is determined to be unacceptable, GRANTEE agrees to remove said advertising within twenty-four (24) hours of official notification, which may be made by telephone. 12. PUBLIC SERVICE MESSAGES A. GRANTEE shall make available to the CITY, fifteen advertising panels for three (3) four -week segments each year for ten (10) years. 9 g jmp/busbench/bussheld2/4/99 B. GRANTEE shall in cooperation with the city, design, print, install and remove fifteen (15) four color posters, three times a year, for ten (10) years at no cost to the CITY. GRANTEE shall assist CITY in design of posters. CITY shall use color posters and advertising to promote the City of Huntington Beach interests. C. Unsold shelter ad panels shall be used by the CITY for public service announcements. For purposes of this section only, "unsold ad panels" excluded advertising required by contractual obligations with advertisers (e.g. "bonus" or "override" panels). D. GRANTEE shall arrange for service and installation of the public service announcements including promotions of transportation related programs as defined by the Public Information Officer or his/her designee. Public service announcements may be preprinted ad sheets from organizations, such as DARE, NEIGHBORHOOD WATCH, MADD, CONFERENCE AND VISITOR BUREAU, ETC. or on special occasions, the CITY shall provide camera ready copy only. Public Service Announcements shall be held to the same standards required of commercial advertising. E. GRANTEE shall provide CITY with up to 10 advertising panels a year, outside of the CITY, at locations of the CITY's choice. The advertising shall run for four weeks. 13. SITE RELOCATION The CITY will have the right to require the GRANTEE to relocate shelters and/or benches, at its sole expense, for the convenience of pedestrians and bus patrons, or because of a change in bus stop locations, or street widening/construction. The GRANTEE shall not relocate or remove a bus shelter or bench without the CITY's permission. The CITY may require, or permit a shelter or bench to be removed or relocated if it has been demonstrated to be incapable of proper maintenance due to excessive vandalism or any other reasonable cause. "Excessive vandalism" is defined as damage inflicted to an individual shelter during any consecutive six (6) month period, which requires cumulative expenditures for replacement and repair that exceed the original cost of construction and installation of the shelter. In the event that a bus route is altered or deleted such that a bus shelter or bench will no longer serve an active bus stop, GRANTEE shall, within thirty (30) days after notification, remove the shelter and/or bench completely or relocate the bus shelter or bench to a new location designated by the CITY. The vacated location shall be restored to its original condition within that same time period. 14. ADDITIONAL SHELTERS AND/OR BENCHES If at any time during the Term, GRANTEE and CITY agree to add bus shelters and/or bus benches without advertising to the number of shelters and/or benches initially authorized, at CITY'S sole discretion, CITY shall provide an amendment to this agreement to reimburse 10 g:jmp/busbench/busshe1 d2/4/99 GRANTEE for cost of services for additional shelters and/or benches without advertising based on the values as shown below. $ each for addition of a single non -advertising shelter. $ each for addition of a single non -advertising bench. $ each for addition of a group of. I-10 non -advertising shelters. $ each for addition of a group of 1-10 non -advertising benches. $ each for addition of a group of 11-20 non -advertising shelters. $ each for addition of a group of 11-20 non -advertising benches. $ each for addition of a group of 21-30 non -advertising shelter. $ each for addition of group of 21-30 non -advertising benches. $ each for addition of a group of 31-40 non -advertising shelters. $ each for addition of a group of 31-40 non -advertising benches. $ each for addition of a group of 41-50 non -advertising shelters. $ each for addition of a group of 41-50 non -advertising benches. $ each for addition of a group of 51-60 non -advertising shelters. $ each for addition of a group of 51-60 non -advertising benches. $ each for addition of a group of 61-75 non -advertising shelters. $ each for addition of a group of 61-75 non -advertising, benches. $ each for addition of a group of 76-100 non -advertising shelters. $ each for addition of a group of 76-100 non -advertising benches. 15. METHOD OF PAYMENT Upon , GRANTEE shall pay in advance, the annual payment for the first full year of service. Thereafter, GRANTEE shall pay quarterly, in advance, on the first day of the quarter, the contract Guaranteed Minimum Payment. If payment is not received by the due date a late charge of 1.5% per month, compounded monthly, will be added. Payments shall be made to the City Treasurer, P.O. Box 711, Huntington Beach, CA 92648. Within sixty (60) days of the end of each contract year GRANTEE shall deliver to CITY a Statement of Accounts for the preceding contract year, showing all shelter and/or bench locations, the advertiser or advertisers at each advertising shelter and/or bench during the preceding contract year, the gross advertising revenues received for each advertising panel at each advertising shelter and/or bench, and the applicable Percentage Revenue for that year. The Statement of Accounts shall be prepared or approved by a certified public accountant according to customary accounting practices and shall be accompanied by a certificate of an authorized officer of GRANTEE attesting to the truth and accuracy of the information relied upon by the accountant, according to the certifying officer's best knowledge. In the event that Percentage Revenue for a particular contract year exceeds the Guaranteed Minimum Payment received by CITY for that contract year, GRANTEE shall pay the difference to the CITY at the time of filing the Statement of Accounts. 11 gjmp/busbench/busshe1t/2/4/99 16. ACCESS TO RECORDS The CITY and its authorized agents shall be granted reasonable access during GRANTEE'S normal business hours to all of GRANTEE'S books, documents, paper, and records that relate to this Agreement. 17. MORTGAGES Any mortgage or lien against the shelters and/or benches shall be subordinate to all franchise rights of the CITY. 18. INTEREST OF GRANTEE The GRANTEE covenants that it presently has no interest and shall not acquire any interest, directly or indirectly, that would conflict in any manner or degree with the performance of the services contemplated by this Agreement. No person having such an interest shall be employed by or associated with the GRANTEE. By accepting this Agreement, GRANTEE acknowledges that notice is and was hereby given to GRANTEE pursuant to California Revenue and Taxation Code Section 107.6 that use or occupancy of any public property pursuant to the authorization herein set forth may create a possessory interest which may be subject to the payment of property taxes levied upon such interest. GRANTEE shall be solely liable for, and shall pay and discharge prior to delinquency, any and all possessory interest taxes or other taxes levied against GRANTEE's right to possession, occupancy or use of any public property pursuant to any right of possession, occupancy or use created by this Agreement. GRANTEE shall not be barred from challenging any amounts assessed pursuant thereto. 19. CONTRACT TERMINATION Notwithstanding any other provision in this Agreement, and in addition to other methods of termination available under the laws of the State of California, GRANTEE's failure to comply with any of its obligations or responsibilities pursuant to this Agreement shall constitute a material default. If GRANTEE fails to commence and completely cure any default within thirty (30) days following written notice from CITY, CITY may immediately terminate this Agreement. Any unpaid monies owed to the CITY shall be paid out of the security funds first, then the CITY shall have the right to sell shelters and/or benches. Upon termination of this Agreement CITY shall have the right, but not the obligation, to purchase from GRANTEE any or all of the shelters and/or benches covered by this Agreement. The price to be paid shall be the value remaining in each unit (including all appurtenances) at the time of termination. For the purpose of this Agreement, "value remaining" shall mean the original value of the unit at its installation (which is determined by this Agreement to be an amount equal to $ for each shelter with advertising including related furniture, $ for each shelter without advertising including related furniture, and $ for each 12 g Jmp/busbench/busshelt/2/4/99 bench including related furniture) minus one tenth (1/10) of the value per year for each full year or portion thereof after installation. In the event that CITY decides not to purchase one or more units on termination of this Agreement, GRANTEE shall remove the unit and return the sites to original condition or better, at GRANTEE's sole expense. GRANTEE shall obtain the appropriater permits and complete the removal of all designated units and restoration of the affected sites within ninety (90) days following CITY'S written election not to acquire the designated shelters. Any shelter, bench, or other furniture not removed within the specified ninety (90) day period shall be declared abandoned, in which case CITY shall obtain ownership by default, or at its election, remove the abandoned shelter, bench or furniture and charge GRANTEE for all costs of removal, with such costs being secured by the letter of credit defined in Section VH, SECURITY FOR PERFORMANCE. 20. LAWS AND REGULATIONS The GRANTEE shall keep fully informed of State and Federal laws and County and Municipal ordinances and regulations that in any manner affect those employed by or in any way affect the performance of services pursuant to this Agreement. The GRANTEE shall at all times observe and comply with all such laws, ordinances and regulations. Furthermore, each and every provision required by law to be inserted into this Agreement shall be deemed to be inserted, and this Agreement shall be read and enforced as though .they were included. 21. HOLD HARMLESS GRANTEE shall protect, defend, indemnify and hold harmless CITY, its officers, officials, employees and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation, costs and fees of litigation of every nature) arising out of or in connection with GRANTEE's performance of its services under this Agreement, or its failure to comply with any of its obligations contained in this Agreement by GRANTEE, its officers, agents or employee, except such loss or damage which was caused by the sole negligence or willful misconduct of the CITY. 22. INSURANCE. GRANTEE, at its sole cost and expense, for the full term of the Agreement (and any extension thereof), shall obtain and maintain at minimum all of the following insurance coverage: A. Types of Insurance and Minimum Limits. The coverage required herein may be satisfied by any combination of specific liability and excess liability policies. 1. Pursuant to California Labor Code section 1861, GRANTEE acknowledges awareness of section 3700 et seq. of said Code, which requires every employer to be insured against liability for workers compensation; 13 g:jmp/busbench/busshe1d2/4/99 GRANTEE covenants that it will comply with such provisions prior to commencing performance of the work hereunder. GRANTEE shall maintain workers compensation insurance in an amount of not less than One Hundred Thousand Dollars ($100,000) bodily injury by accident, each occurrence, One Hundred Thousand Dollars ($100,000) bodily injury by disease, each employee, Two Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit. GRANTEE shall require all subcontractors to provide such workers compensation insurance for all of the subcontractors' employees. GRANTEE shall furnish to CITY a certificate of waiver of subrogation under the terms of the workers compensation insurance and GRANTEE shall similarly require all subcontractors to waive subrogation. 2. GRANTEE shall obtain and furnish to CITY, a policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify GRANTEE, its officers, agents and employees, while acting within the scope of their duties, against any and all claims of arising out of or in connection with this Agreement, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name CITY, its officers, and employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the Agreement shall be deemed excess coverage and that GRANTEE 'S insurance shall be primary. 23. CERTIFICATES OF INSURANCE Prior to commencing performance of the work hereunder, GRANTEE shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall: a. provide the name and policy number of each carrier and policy; b. shall state that the policy is currently in force; and C. shall promise that such policies shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty days prior written notice; however, ten days prior written notice in the event of cancellation for nonpayment of premium. GRANTEE shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by CITY. 14 g Jmp/busbench/busshelt/2/4/99 The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of CITY by GRANTEE under the Agreement. CITY or. -its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. GRANTEE shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. If for any reason GRANTEE fails to obtain or keep any of such insurance in. force, CITY may, but shall 'not be required to, obtain such insurance, in which event GRANTEE shall promptly reimburse the CITY premium cost therefor plus one and one-half percent (1 '/2%) monthly interest thereon until paid. 24. OWNERSHIP Prior to commencing performance under this Agreement, GRANTEE shall provide the CITY with a written statement, executed under penalty of perjury, containing the following information: A. If the GRANTEE is a corporation, the name of the corporation shall be set forth exactly as shown in its Articles of Incorporation or Charter together with the State and date of incorporation and the names and residence addresses of each of its current officers and directors, and of each stockholder holding more than five percent (5%) of the stock of that corporation. B. If the GRANTEE is a partnership, the statement shall set forth the name and residence of each of the partners, including limited partners. If GRANTEE is a limited partnership it shall furnish a copy of its certificate of limited partnership as filed with the County Clerk. If one or more of the partners is a corporation, the provisions of Subsection A, above, pertaining to corporate GRANTEE shall apply. C. If the GRANTEE is a corporation, or partnership, GRANTEE shall designate one of its officers or general partners to act as its responsible managing employee. Prior to the Effective Date GRANTEE shall deliver to CITE' proof of the designation of the responsible managing employee pursuant to appropriate authority. The responsible managing employee shall complete and sign all the statements required by this Agreement. D. If the GRANTEE is not a corporation or a partnership, the statement shall set forth the name and residence address of each and every owner possessing more than five percent (5%) ownership interest, regardless of whether such ownership interest consists of stock or any other asset, tangible or intangible. 25. NOTICES Any notice required to be given herein shall be in writing and shall be personally served or given by mail. Notice by personal service shall be effective upon delivery. Any notice by 15 g:jmp/busbench/busshe1t/2/4/99 mail shall be deemed to have been given when deposited in the United States mails, certified and postage prepaid, addressed to the party to be served, as follows: To: CITY TO GRANTEE: Director of Public Works City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648-2702 26. ASSIGNMENT; SUBCONTRACTS The GRANTEE shall not subcontract, assign, sell, encumber or otherwise transfer its rights and obligations under this Agreement without the prior written consent of the CITY. Approval shall not be unreasonably withheld. Any attempted transfer without the CITY'S prior written consent shall be void and shall, at the option of the CITY, terminate this Agreement. 27. AMENDMENT; WAIVER This Agreement shall not be amended except by a written instrument signed by the parties. No failure or delay of either party in the exercise of any right given to that party pursuant to this Agreement or given to that party by operation of law shall constitute a waiver of that right, nor shall any single or partial exercise of that right preclude any other further exercise of that right or of any other right. No waiver shall be effective unless the waiver is executed in writing and delivered to the other party in compliance with the notice provisions of this Agreement. 28. INDEPENDENT CONTRACTOR GRANTEE shall perform all services required herein as an independent contractor of CITY and shall remain at all times as to CITY a wholly independent contractor and not an employee of CITY. CITY shall not in any way or for any purpose become or be deemed to be a partner of GRANTEE in its business or otherwise, or a joint venturer, or a member of any joint enterprise with GRANTEE, 29. LEGAL ACTIONS The Municipal and Superior Courts of the State of California in the County of Orange shall have the exclusive jurisdiction of any litigation between the parties arising out of this Agreement. This Agreement shall be governed by, and construed under, the laws of the State of California. The rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. Service of process on CITY shall be made in the manner required by law for service 16 gjmp/busbench/busshe1d2/4/99 on a public entity. Service of process on GRANTEE shall be made in any manner permitted by law and shall be effective whether served within or outside of California. 30. NON -LIABILITY OF CITY OFFICERS AND EMPLOYEES No officer, official, employee, agent, representative, or volunteer of the CITY shall be personally liable to the GRANTEE, or any successor in interest, in the event of any default or breach by the CITY, or for any amount which may become due to GRANTEE or its successor, or for breach of any obligation of the terms of this Agreement. 31. INTERPRETATION; SEVERABILITY The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. The Section headings are for purposes of convenience only, and shall not be construed to limit or extend the meaning of this Agreement. Each provision of this Agreement shall be severable from the whole. If any provision of this Agreement shall be found contrary to law, the remainder of this Agreement shall continue in full force. 32. EXTENT OF AGREEMENT This document represents the entire integrated Agreement between the CITY.and GRANTEE. All prior negotiations, representations, or agreements, either written or oral, are merged into and superseded by this Agreement. GRANTEE and CITY expressly agree that no additional terms or conditions exist that affect this Agreement and that are not contained in this Agreement. REST OF PAGE NOT USED 17 g jmp/busbench/bussheld2/4/99 33. ATTORNEY'S FEES In the event suit is brought by either party to enforce the terms and provisions of this agreement or to secure the performance hereof, each party shall bear its own attorney's fees. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. GRANTEE: CITY OF HUNTINGTON BEACH, A municipal corporation of the State of California By: print name ITS: (circle one) Chairrnan/President(Vice President Mayor AND ATTEST: By: City Clerk print name ITS: (circle one) Secretary/Chief Financial Officer/Asst. Secretary -Treasurer APPROVED AS TO FORM: REVIEWED AND APPROVED: City Attorney a. INITIATED AND APPROVED: City Administrator Director of Public Works 18 gjmp/busbench/busshe1d1i29/99 Exhibit `B" Contract Year Guaranteed Minimum Monthly Payment (Shelter Only) Guaranteed Minimum Monthly Payment (Ad Bench Only) OR Percentage Of Gross Advertising Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Potential Extension Year 11 Year 12 Year 13 Year 14 Year 15 19 g jmpfbusbench/busshelt/2/4/99 0 s Huntington Beach February 8, 1999 «Company» ((Address)) Citystzip» «Attn» CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach California 92648 CENTRAL SERVICE DIVISION This is an addendum to the Request for Proposal for Transit Advertising Services, RFP#990305-2, which was sent out on Friday February 5, 1999. In the original mailing we did not include the attachment enclosed. This attachment falls under "Required Information" #11 "Installation Schedule" on page 5. Everything else remains the same. Sincerely, Marilyn Goldstein /mg ADDENDI.DOC 03/2919911:44 AM s � Huntington Beach February 22, 1999 CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach California 92648 CENTRAL SERVICE DIVISION This is addendum #2 to the Request for Proposal for Transit Advertising Services, RFP#990305-1. Below are the following changes: 1. "General Traffic Engineering criteria for the location of transit advertising services & Design Concept" is an addition to the original Request for Proposal. 2. Within the Franchise Agreement on page 9 "#11. ADVERTISING STANDARDS" has changes on C. #4 per attached. 3. On page 5 of the proposal, "#12. titled Compensation", please fill out the new compensation section attached. Everything else will remain the same. Sincerely, Marilyn Goldstein /mg Addend2.doc 02/22/9912:52 PM General Traffic Engineering criteria for the location of transit advertising services. Transit advertising services can potentially be placed anywhere a bus stop, as identified by the Orange County Transit Authority, exists in the city. In addition to the criteria mentioned in the RFP, the shelter shall not block the visibility of driveway ingress/egress or business signage. Design Concept Although design concepts are discussed in the RFP, the City is open to alternative design concepts which may enhance the overall quality of the project. Changes in design concepts shall be discussed with and approved by City staff. 11. ADVERTISING STANDARDS A Shelter advertising shall be limited to two backlit ad panels per shelter. If the side walk/parkway is narrow, access is to be provided by pouring additional slab. Alternative advertising panel designs as required on a site -by -site basis will require the specific approval of the Director of Public Works, or his/her designee. 12.36. B. All advertising shall conform to the requirements of Huntington Beach Municipal Code C. Any proposed advertising to be located on said shelter ad panels shall not: 1. Display the words "STOP", "DRIVE-IN", "DANGER", or any other word, phrase, symbol or character which may interfere with, mislead, confuse, or direct vehicular traffic. 2. Comprise of rotating, revolving, or flashing lighting devises. 3. Promote material which the CITY in its sole discretion determines is offensive to community standards of good taste. 4. Promote alcohol and/or tobacco products. Beer- and wine aa.,e:s; '" weeptable. 5. Promote unsold bus shelter advertising space. 6. Contain "on -site business identification signs", "off -site business identification signs", or "political advertisements". For the purpose of this Agreement, "on -site business identification signs" are defined as bus shelter ad panels immediately adjacent to the business which is the subject of the shelter ad. Business with multiple sites within the CITY are exempt from this ad restriction. "Off -site identification signs" are defined as ad panels that give specific direction to an advertiser's place of business other than the site's address. Restrictions include, but are not limited to indications such as: directional arrows; "one block"; "next right"; etc. D. The Director of Public Works or his/her designee will make the final determination on unacceptable advertising. In the event that an advertisement is determined to be unacceptable, GRANTEE agrees to remove said advertising within twenty-four (24) hours of official notification, which may be made by telephone. 12. PUBLIC SERVICE MESSAGES A. GRANTEE shall make available to the CITY, fifteen advertising panels for three (3) four -week segments each year for ten (10) years. 9 g J mp/b usbench/b usshel t/2/21 /99 11. ADVERTISING STANDARDS A: Shelter advertising shall be limited to two backlit ad panels per shelter. If the side walk/parkway is narrow, access is to be provided by pouring additional slab. Alternative advertising panel designs as required on a site -by -site basis will require the specific approval of the Director of Public Works, or his/her designee. 12.36. B. All advertising shall conform to the requirements of Huntington Beach Municipal Code C. Any proposed advertising to be located on said shelter ad panels shall not: 1. Display the words "STOP", "DRIVE-IN", "DANGER", or any other word, phrase, symbol or character which may interfere with, mislead, confuse, or direct vehicular traffic. 2. Comprise of rotating, revolving, or flashing lighting devises. 3. Promote material which the CITY in its sole discretion determines is offensive to community standards of good taste. 4. Promote alcohol and/or tobacco products. 5. Promote unsold bus shelter advertising space. 6. Contain "on -site business identification signs", "off -site business identification signs", or "political advertisements". , For the purpose of this Agreement, "on -site business identification signs" are defined as bus shelter ad panels immediately adjacent to the business which is the subject of the shelter ad. Business with multiple sites within the CITY are exempt from this ad restriction. "Off -site identification signs" are defined as ad panels that give specific direction to an advertiser's place of business other than the site's address. Restrictions include, but are not limited to indications such as: directional arrows; "one block"; "next right"; etc. D. The Director of Public Works or his/her designee will make the final determination on unacceptable advertising. In the event that an advertisement is determined to be unacceptable, GRANTEE agrees to remove said advertising within twenty-four (24) hours of official notification, which may be made by telephone. 12. PUBLIC SERVICE MESSAGES A. GRANTEE shall make available to the CITY, fifteen advertising panels for three (3) four -week segments each year for ten (10) years. 9 g: jmp/busbench/bussheld2/21 /99 12. Compensation. Identify the proposed "COMPENSATION TO CITY" (as defined in the proposed Agreement). The compensation is on a per month basis for each advertising shelter plus a non -advertising bench, an advertising shelter only, or an advertising bench only, and must be provided in the spaces below. Contract Year Guaranteed Minimum Monthly Payment (Shelter + Non Ad Bench) Guaranteed Minimum Monthly Payment (Shelter Only) Guaranteed Minimum Monthly Payment (Ad Bench Only) OR, Percentage Of Gross Advertising Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Potential Extension Year 11 Year 12 Year 13 Year 14 Year 15 Huntington Beach February 8, 1999 «Company» «Address» cCitystzip» «Attn» CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach California 92648 CENTRAL. SERVICE DIVISION This is an addendum to the Request for Proposal for Transit Advertising Services, RFP#990305-2, which was sent out on Friday February 5, 1999. In the original mailing we did not include the attachment enclosed. This attachment falls under "Required Information" #11 "Installation Schedule" on page 5. Everything else remains the same. Sincerely, Marilyn Goldstein /mg ADDEND 1.DOC 03/29/9911:44 AM AMENDMENT NO. I TO LICENSE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH - AND ELLER MEDIA TO PROVIDE TRANSIT ADVERTISING SHELTERS THIS AMENDMENT is made and entered into as of the day of 199_, by and between the City of Huntington Beach, a municipal corporation hereinafter referred to as "CITY" and ELLER MEDIA, a Delaware corporation, hereinafter referred to as "LICENSEE". WHEREAS, the CITY entered into a License Agreement between the City of Huntington Beach and Shelter Vision Media, Inc., dba Sheltervision to provide for transit advertising shelters on November 21, 1994, which was thereafter assigned to LICENSEE on February 3, 1997; WHEREAS, the CITY entered into a License Agreement between the City of Huntington Beach and Patrick Target Media to provide for transit advertising shelters on November 21, 1994, which was thereafter assigned to LICENSEE on February 3, 1997; WHEREAS, the CITY entered into a License Agreement between the City of Huntington Beach and Metro Display Advertising, Inc. to provide for transit advertising shelters on February 6, 1995; and LICENSEE acquired a 100% interest in Metro Display Advertising, Inc. on June 17, 1997; WHEREAS, the parties mutually desire that CITY permit LICENSEE to continue to provide transit advertising shelters in CITY and upon CITY sidewalks as previously provided pursuant to the aforementioned License Agreements, NOW, THEREFORE, it is agreed by CITY and LICENSEE as follows: 1. DURATION: This Amendment shall commence on the 1 st day of January, 1999 (the "Effective Date") and remain in force until September 30, 1999, unless previously terminated as hereinafter provided. This Amendment may be extended upon mutual consent of both parties. 2. TERMINATION/CANCELLATION CITY shall have the right to terminate this Amendment with or without cause effective upon thirty (30) days written notice to LICENSEE. Upon notice of termination, LICENSEE shall remove the unit and return the sites to original condition or better, at LICENSEE'S sole expense. LICENSEE shall complete the removal of all designated units and restoration of the affected sites within thirty (30) working days following notice of termination. Imp/agreemen W usamend/12/29/98 Any shelter, bench, or other furniture not removed within the specified thirty (30) working day period shall be declared abandoned, in which case CITY shall obtain ownership by default, or at its election, remove the abandoned shelter, bench or furniture and charge LICENSEE for all costs of removal, which costs are secured by bonds as defined in 13 of the aforementioned License Agreements. 3. FORCE MAJEURE The time within which the LICENSEE is obligated to remove shelters and . benches shall be extended for a period of time equal in duration to, and performance shall be excused on account of and for, and during the period of, any delay caused by strikes, threat of strikes, lockouts, war, threats of war, insurrection, invasion, acts of God, calamities, violent action of the elements, fire, action or adoption of any regulation, law or ordinance by any governmental agency, precluding LICENSEE'S performance. 4. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the original License Agreements shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and through their authorized offices the day, month and year first above written. ELLER MEDIA, INC. Lo print name ITS: (circle one) Chairman/President/Vice President print name ITS: (circle one) Secretary/Chief Financial Officer/Asst. Secretary — Treasurer CITY OF HUNTINGTON BEACH, A municipal corporation of the State of California REVIEWED AND APPROVED: �2� re'P 411, Ci Administrator APPROVED AS ' A-'� TO F RM: g a `City Attorney lei 1,2A INITIATED AND APPROVED: Director of Administrative Services Jmp/agreement/busamend/l2/29/98 12i30i98 08:10 ELLER MEDIA CO -+ 7345038 7145365233 12-29-98 06:15PM FROW 111 NO.618 W33 Poi •N . 4", �► AMENDMENT NO, 1 TO LICENSE. AGREEMEN T:BE'TWEEN THE CITY OF HIiJNTINGTON BEACH AND ELLER MEDIA TO PROVIDE TRANSIT ADVERTISING SHELTERS THIS AMENDMENT is made and entered into as of the day of , 199___, by and between the City of Huntington Beach, a municipal corporation hereinafter referred to as "CITY" and ELLER MEDIA, a Delaware corporation, hereinafter refereed to as "LICENSEE". WHEREAS, the CITY enterod into a License AgrePxrient betwe$n the City of Huntington Beach and Shelter Vision Media, Inc., dba Sheltervision to provide for transit advertising shelters on November 21, 1994, which was thereafter assigned to LICENSEE on February 3. 1997; WHEREAS, the CITY entered into a License Agreement between the City of Huntington Baruch and Patrick Target Media to provide for transit advertising shelters on November 21, 1994, which was tereafter assigned to LICENSEE on February 3, I997; WHEREAS, the CITY entered into a License Afreetnent between the City of Huntington beach and Metro Display Adl7ettiairS;4n6.*to provide for transit advertising shelters on February 6, 1993; and LICENSEE acquired a 100% interest in Metro Display Advertising, Inc -on June 17, 1997; WHEREAS, the parties mutually desire that CITY permit LICENSEE to continue to protizde transit advertising shelters in CITY and upon CITY sidewalks as previously provided pursuant to the aforementioned License Agreements, NOW, THEREFORE, it is agreed by CITY and LICENSEE as follows: This Amendment shall commence on the 1st day of January, 1999 (the "Effective Date") and remain in force until September 30, 1999, unless previously terminated as hereinafter provided. This Amendment may be extended upon mutual consent of both parties. 2. TERMINATIONICA,NCELLATION CITY shall have the right to terminate this Amendment with or without cause effective upon thirty (30) days written notice to LICENSEE. 'Upon notice of termination, LICt?SEE't till ?emove the unit and return the sites to original condition or better, at LICENSEE'S sole expense. LICENSEE shalt complete the removal of all designated units and restoration of the affected sites within thirty (30) working days following notice of termination. Jrry'aarc*m=Vbu&u=d/tI/ %%3 12i30i98 09:10 ELLER MEDIA CO 4 7345038 N0.618 D02 12-29-98 06:15PM FROM Ill P02 Any shelter, bench, or other furniture not removed within the specified thirty (30) working day period shall be declared abandoned, in which case CITY shall obtain ownership by default, or at its election, remove the abandoned shelter, bench or furniture and charge LICENSEE for all costs of rerioval, which costs are secured by bonds as defined in 13 of the aforementioned License Al romnents. The time within which the LICENSEE is obligated to remove shelters and benches shall be extended for a period of time equal in duration to, and performance shall be excused on account of and for, and during the period of, any delay caused by strikes, thmat Qf SSllhij, j9jh94W, war, threats of wart insurrection, invasion, acts of God, calamities, violent action of the elements, fire, action or adoption of any regulation, law or ordinance by any governmental agency, preeluding, LICENSEE'S performance. d, REAFFIRMATION Except as spccifically modified Herein, all other terms and conditions of the original License Agreements shall remain in frill force and effect. TNti WITNESS WHEREOF, the Farties hereto have caused this Amendment to be executed by and through their authorized offices the day, month and year first above written. ELLER MED INC. print tus"r e ITS: (circle one) Chairman sid 'ice President 13 �� print name IT5; (circle one) Secretary/Chief Financial Officer/Asst. Secretary —'treasurer AM' )rWaF=rmtJbusemmdn 2n9198 CITY OF HUNTINGTON BEACH, A municipal corporation of the State of California REVIEWED AND APPROVED. City Administrator APPROVED AS TO FORM: s City Attorney t� . ,, jNgLATED AND APPROVED: Director of Administrative Services i r12-29-98 06:15PM FROM 111 7145365233 POI AMENDMENT NO. 1 TO LICENSE AGREEMENT BETWEEN THE CITY OF lEIUNTINGTON BEACH AND ELLER MEDIA TO PROVIDE T1RANSIT ADVERTISING SHELTERS THIS AMENDMENT is made and entered into as of the day of , 199 , by and between the City of Huntington Beach, a municipal . corporation hereinafter referred to as "CITY" and ELLER MEDIA, a Delaware corporation, hereinafter referred to as "LICENSEE". WHEREAS, the CITY entered into a License Agreement between the City of Huntington Beach and Shelter Vision Media, Inc., dba Sheltervision to provide for transit advertising shelters on November 21, 1994, which was thereafter assigned to LICENSEE on February 3, 1997; WHEREAS, the CITY entered into a License Agreement between the City of IIuntington Beach and Patrick Target Media to provide for transit advertising shelters on November 21, 1994, which was thereafter assigned to LICENSEE on February 3, 1997; WHEREAS, the CITY entered into a License Agreement between the City of Huntington Beach and Metro Display Advertising; Inc? to provide for transit advertising shelters on February 6, 1995; and LICENSEE acquired a 100% interest in Metro Display Advertising, Inc. on June 17, 1997; WHEREAS, the parties mutually desire that CITY permit LICENSEE to continue to provide transit advertising shelters in CITY and upon CITY sidewalks as previously provided pursuant to the aforementioned License Agreements, NOW, THEREFORE, it is agreed by CITY and LICENSEE as follows: DURATION: This Amendment shall commence on the 1st day of January, 1999 (the "Effective Date") and remain in force until September 30, 1999, unless previously terminated as hereinafter provided. This Amendment may be extended upon mutual consent of both parties. 2. TERMINATION/CANCELLATION CITY shall have the right to terminate this Amendment with or without cause effective upon thirty (30) days written notice to LICENSEE. Upon notice of termination, LICENSEE' Shall ?°emove the unit and return the sites to original condition or better, at LICENSEE'S sole expense. LICENSEE shall complete the removal of all designated units and restoration of the affected sites within thirty (30) working days following notice of termination. dmp/agreemenVbusan=d/t 2/29199 12-29-98 06:15PM FROM 111 P02 aK' . ..n=!. - X Any shelter, bench, or other furniture not removed within the specified thirty (30) working day period shall be declared abandoned, in which cast CITY shall obtain ownership by default, or at its election, remove the abandoned shelter, bench or furniture and charge LICENSEE for all costs of removal, which costs are secured by bonds as defined in 13 of the. aforementioned License Agreements. 3. FORCE MAJEURE The time within which the LICENSEE is obligated to remove shelters and benches shall be extended for a period of time equal in duration to, and performance shall be excused on account of and for, and during the period of, any delay caused by strikes, threat 4f 61rihu,14Sk4}lt§j war, threats of war, insurrection, invasion, acts of God, calamities, violent action of the elements, fire, action or adoption of any regulation, law or ordinance by any governmental agency, precluding LICENSEE'S performance. 4. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the original License Agreements shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and through their authorized offices the day, month and year first above written. ELLER MEPJAINC. 7S.7r��e K Si: j ArL print name ITS: (circle one) Chairman esiden Vice President By: print name ITS: (circle one) Secretary/Chief Financial Officer/Asst. Secretary — Treasurer CITY OF HUNTINGTON BEACH, A municipal corporation of the State of California REVIEWED AND APPROVED. City Administrator APPROVED AS TO FORM: qg 7 `City Attorney 1 yl�ls� ,,,,.,JNUTATED AND APPROVED: Director of Administrative Services JmplagmenumUbusamend/12/29198 LICENSE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND METRO DISPLAY ADVERTISING, INC.. TO PROVIDE FOR TRANSIT ADVERTISING SHELTERS 150, THIS AGREEMENT is made and entered into this day of 199//, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation oftreState of California, hereinafter called CITY and METRO DISPLAY ADVERTISING, INC., a California corporation, hereinafter called LICENSEE. WHEREAS, the parties mutually desire that CITY permit LICENSEE to provide transit advertising shelters in CITY and upon CITY sidewalks at locations approved by the Director of Public Works of CITY. NOW, THEREFORE, the parties covenant and agree as follows: 1. DURATION This agreement shall become effective July 1, 1994 and remain in force until December 31, 1998, unless previously terminated as hereinafter provided. This agreement may be extended upon mutual consent of both parties. 2. COMPENSATION LICENSEE shall pay to the CITY a fee of Five Thousand Dollars ($5,000.00) per month beginning July 1, 1994, and ending December 31, 1995 or fifteen percent (15%) of the gross revenue, whichever is greater. LICENSEE shall pay to CITY the sum of twelve Thousand Dollars ($12,000.00) per month beginning January 1, 1996, and ending December 31, 1998, or fifteen percent (15%) of the gross revenue, whichever is greater. This compensation clause is payment for all the shelter locations as shown on Exhibit A for a maximum of 170 shelters. Therefore'no additional shelters may be added under this payment schedule. This minimum fee shall be payable monthly in advance. Fees are non-refundable unless the CITY requests removal of a shelter. 6W=tr;a1V15/94 Shelter advertising panels and overhead roofing shall contain lighting to illuminate the inner area of the shelter. LICENSEE shall furnish and pay for all electrical connections and the energy used and supplied to the shelters and shall indemnify CITY against any and all costs arising from the use, maintenance and construction thereof. Each shelter shall come equipped with one 22 gallon trash receptacle furnished by the shelter company. Shelters shall be illuminated from dusk to dawn. Solar powered shelters may have reduced hours of illumination from dusk to midnight. Materials to be used will be subject to CITY approval. Materials should withstand corrosive elements and be finished to resist graffiti. Typical materials will be aluminum, tempered glass, steel supports and polyesters. Each shelter will clearly display identification, shelter company's name and phone number and a CITY supplied shelter number. Each shelter shall comply with all applicable government codes and regulations including design specifications as may be set forth by the CITY. 5. AL4=NANCE Each shelter and the immediate area around each shelter shall be inspected, cleaned, and trash receptacles emptied not less than two (2) times per week. Each shelter and bench and the immediate area around each shelter and bench shall be steam cleaned as needed but not less than twice each year. If shelter or bench damage or vandalism is such that the public could be exposed to a dangerous situation while in or near the shelter or bench, LICENSEE shall repair or, if necessary, remove the entire shelter or bench within twenty-four (24) hours of notification and it shall be replaced and/or made fully operational at the same location within five (5) working days after removal. Graffiti and vandalism will be checked for during the twice weekly cleaning operation. All graffiti found by such crews or by reports from citizens or the CITY will be 3 6/klmclyd11J8l94 � . .: .. LICENSEE hereby agrees to indemnify, defend, and hold and save harmless CITY, its officers and employees from any and all liability, including any claim of liability and any and all losses or costs arisingout of the negligent performance of this Agreement by LICENSEE, its officers or employees. 10. WORKERS' COMPENSATION LICENSEE shall comply with all of the provisions of the Workers Compensation Insurance and Safety Acts of the State of California, the applicable provisions of the California Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless CITY from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney fees and costs presented, brought or recovered against CITY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by LICENSEE under this agreement. LICENSEE shall obtain and furnish evidence to CITY of maintenance of statutory workers compensation insurance and employers liability in an amount of not less than $100,000 bodily injury by accident, each occurrence, $100,000 bodily injury by disease, each employee, and $250,000 bodily injury by disease, policy limit. 11. RgSURANCE In addition to the workers' compensation insurance and LICENSEE'S covenant to indemnify CITY, LICENSEE shall obtain and furnish to CITY the following insurance policy covering the -services provided under this agreement: A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify LICENSEE, its officers, agents and employees, while acting within the scope of their duties, against any and all claims arising out of or in connection with the services provided herein, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability 6Wmctro/12/W4 13. RESTORATION BOND LICENSEE will post restoration bonds The bonds may be in the form of an irrevocable letter of credit, surety bond or in such,form as approved by the City Attorney. The first bond shall be in the amount of $10,000 and shall be delivered to the. CITY within thirty (30) days of the execution of this Agreement. A. second bond in the amount of $10,000 will be delivered to the CITY within six (6) months after execution of this Agreement. A third bond in the amount of $10,000 will be delivered to the CITY within one (1) year of execution of this Agreement. A fourth bond in the amount of $10,000 will be delivered to the CITY within eighteen (18) months of the execution 'of this Agreement. All bonds shall remain in full force and effect during the term of this Agreement. 14. NOTICES Any notice or special instructions required to be given in writing under this agreement shall be given either by personal delivery to LICENSEE'S agent (as designated in Section 1 hereinabove) or to CITY'S Director of Public Works as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO CITY: Director of Public Works City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 TO LICENSEE: Tony Ingegneri, Vice President Government Relations Metro Display Advertising, Inc. 15265 Alton Park, Suite 100 Irvine, CA 92718 15. TERMINATION/CANCELLATION CITY may terminate this agreement for cause. LICENSEE shall be afforded a pre -termination notice and opportunity to respond prior to any such termination. 7 6/k/mC4W12/R/94 17��V\tf The foregoing sets forth the entire agreement between the parties. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by and through their authorized officers the day, month and year first above written. LICENSEE: METRO DISP AY AD RTISING, INC. By: G signaffre G,_dfint p e r Its: (circle one Chairman( �res��ideice President By: - sign tore print name Its: (circle one Secre Chief Financial Officer/Asst. Secretary - Treasurer REVIEWED AND CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California ATTEST: 0 City Clerk APPROVED AS TO FORM: 16 r' lot, City Attorney ZZL INITIATED AND APPROVED: J\\ D' ector'ofPublic Works E 6Wmdm/121V94 LICENSE AGREEMENT BETWEEN _ THE CITY OF HUNTINGTON BEACH AND PATRICK TARGET MEDIA. TO PROVIDE FOR TRANSIT ADVERTISING SHELTERS THIS AGREENMW is made and entered into this 771 V day ofA4,rrihe_' P 1994, by. and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter called CITY and PATRICK TARGET MEDIA, a limited partnership, by PATRICK TARGET MEDIA, a Delaware corporation - general partner, hereinafter called LICENSEE. WHEREAS, the parties mutually desire that CITY permit LICENSEE to provide transit advertising shelters in CITY and upon CITY sidewalks at locations approved by the Director of Public Works of CITY. NOW, THEREFORE, the parties covenant and agree as follows: 1. DURATION This agreement shall remain in force until December 31, 1998, unless previously terminated as hereinafter provided. This agreement may be extended upon mutual consent of both parties. 2. COMPENSATION LICENSEE shall pay to the CITY a fee of One Hundred Dollars ($100.00) per month per shelter, or 15% of gross advertising revenue, whichever is greater. This minimum per shelter fee will be increased by Five Dollars ($5.00) per year beginning January 1, 1995, and by a same amount each successive year on the first day of January during the term of this agreement. This minimum fee per shelter shall be payable quarterly (i.e. January 1st, April 1st, July 1st and October 1st) in advance. Fees are non-refundable unless the CITY requests removal of a shelter. A listing will be provided to the CITY each quarter showing each shelter, the advertisings, and revenue for that location. The listings will be due April 30th, July 31st, October 31 st and January 31 st. 1 3\sV-gr=:Patdck Target MediaV6/29/94 Any additional monies due the CITY in excess of the annual minimum will be paid no later than July 31st. Fees received after the due date are subject to 10% per month penalty. If fees are delinquent more than 60 days, the CITY may declare the contract voided and order removal of all shelters: The shelter and location covered by this license agreement are listed on Exhibit "A' and made a part of this agreement. LICENSEE may request additional shelter locations. The Director of Public Works will determine if the location requested fills a need and grant additional locations. Such new locations will be subject to the same expiration date and terms as this contract. All new locations will require payment of all permits and fees as are established by ordinance or resolution. In addition, a one-time fee of $500 will be required for each additional location. Advance minimum fees for new shelters will be prorated to January 1st. Where more than one company requests the same location, the CITY will award the locations alternately to each company. 3. NON-EXCLUSIVE RIGHT TO ERECT SHELTERS The rights granted herein are not exclusive, and during the terms of this agreement CITY may grant to any other company or individual the right to erect advertising shelters on public streets and sidewalks within its corporate limits. 4. TYPE OF SHELTER All shelters will include a bench, roof and side panels. Back and side panels will be constructed of tempered bronze glass or a material authorized in writing by the Director of Public Works. A map display case is desirable. Shelters will be of approximately the following dimensions with a minimum of 4 feet clearance between the shelter and the curb face.: a. 17 feet in length b. 5 feet in depth C. 8 feet, 6 inches in height 2 5\SV,& e:PatrickTargetMedia1009/94 Advertising panels are limited to two illuminated panels, with each display face measuring no more than 48 inches wide and 72 inches high. Shelter advertising panels and overhead roofing shall contain lighting to illuminate the inner area of the shelter. LICENSEE shall furnish and pay for all electrical connections and the energy used and supplied to the shelters and shall indemnify CITY against any and all costs arising from the use, maintenance and construction thereof. Each shelter shall come equipped with one 22 gallon trash receptacle furnished by 1. the shelter company. Shelters shall be illuminated from dusk to dawn. Solar powered shelters may have reduced hours of illumination from dusk to midnight. Materials to be used will be subject to CITY approval. Materials should withstand corrosive elements and be finished to resist graffiti. Typical materials will be aluminum, tempered glass, steel supports and polyesters. Each shelter will clearly display identification, shelter company's name and phone number and a CITY supplied shelter number. Each shelter shall comply with all applicable government codes and regulations including design specifications as may be set forth by the CITY. 5. MAINTENANCE Each shelter and the immediate area around each shelter shall be inspected, cleaned, and trash receptacles emptied not less than two (2) times per week. Each shelter and bench and the immediate area around each shelter and bench shall be steam cleaned as needed but not less than twice each year. If shelter or bench damage or vandalism is such that the public could be exposed to a dangerous situation while in or near the shelter or bench, LICENSEE shall repair or, if necessary, remove the entire shelter or bench within twenty-four (24) hours of notification and it shall be replaced and/or made fully operational at the same location within five (5) working days after removal. M 5V\Ag=:Patdck Target MedW06/29/94 Graffiti and vandalism will be checked for during the twice weekly cleaning operation. All graffiti found by such crews or by reports from citizens or the CITY will be removed within five (5) working days. A twenty-four hour emergency telephone number shall be supplied to the CITY. 6. PERMITS, FEES AND LICENSES LICENSEE will obtain all permits and for business license and pay the costs and fees regularly assessed by CITY. 7. TYPES OF ADVERTISING LICENSEE shall.utilize shelters only for advertising material and will not permit obscene, indecent and vulgar advertising. No shelter may advertise tobacco products. Alcohol advertising will be limited to beer and wine and no more than twenty percent (20%) of the shelters will be allowed such advertising at any one time. No alcohol advertising may be displayed within 500 feet of school, church or CITY park. LICENSEE will withdraw any shelter advertising which CITY in its sole discretion determines to be inappropriate and such advertising shall be removed upon twenty-four (24) hours notice of such determination. LICENSEE shall make up to five percent (5%) of space available for public service advertising. Public service advertising space is to be provided only when not rented to an advertiser. 8. SITE LOCATIONS The location of shelters will be chosen by mutual agreement of the Public Works Director and an authorized representative of LICENSEE. In the event relocation of bus shelters is requested by CITY due to development or redevelopment of certain areas, changes in bus routes, or at the discretion of the Public Works Director, LICENSEE will remove and relocate such shelters and bear all costs of restoring the sites and relocating each shelter. All shelters at new locations will be erected within sixty (60) days of CITY approval. 4 S\AAgrec:Pahick Target MedW07/06194 9. INDEMNMCAITON AND HOLD HARMLESS LICENSEE hereby agrees to indemnify, defend, and hold and save harmless CITY, its officers and employees from any and all liability, including any claim of liability and any and all losses or costs arising out of the negligent performance of this Agreement by LICENSEE, its officers or employees. 10. W ORI ERS' COMPENSATION LICENSEE shall comply with all of the provisions of the Workers Compensation Insurance and Safety Acts of the State of California, the applicable provisions of the Cal fornia Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless CITY from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney fees and costs presented, brought or recovered against CITY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by LICENSEE under this agreement. LICENSEE shall obtain and furnish evidence to CITY of maintenance of statutory workers compensation insurance and employers liability in an amount of not less than $100,000 bodily injury by accident, each occurrence, $100,000 bodily injury by disease, each employee, and $250,000 bodily injury by disease, policy limit. 11. INSURANCE In addition to the workers' compensation insurance and LICENSEE'S covenant to indemnify CITY, LICENSEE shall obtain and furnish to CITY the following insurance policy covering the services provided under this agreement: A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify LICENSEE, its officers, agents and employees, while acting within the scope of their duties, against any and all claims arising out of or in connection with the services provided herein, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability 5 31s\AV=:Patrick Target Media106/29/94 and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $11000,000. Said policy shall name CITY, its officers, and employees as Additional insureds, and shall specifically provide that any other insurance coverage which may applicable to the service. provided herein, shall be deemed excess coverage and.that LICENSEE'S insurance shall be Peary 12. CERTIFICATES OF INSURANCE;.ADDMONAL INSURED ENDORSEMENTS Prior to commencing performance of the work hereunder, LICENSEE shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this agreement; said certificates shall provide the name and policy number of each carrier and policy, and shall state that the policy is currently in force and shall promise to provide that such policies will not be canceled or modified without thirty (30) days prior written notice of CITY. LICENSEE shall maintain the foregoing insurance coverages in force until the work under this agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of CITY by LICENSEE under the agreement. CITY or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. LICENSEE shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. A separate copy of the additional insured endorsement to each of LICENSEE'S insurance policies, naming the CITY, its officers and employees as Additional Insureds shall be provided to the City Attorney for approval prior to any payment hereunder. 6 As%Av=:Patrick Target MediaNO6/29/94 LICENSEE will post a $500 per shelter restoration bond.. The bond may be in the form of an irrevocable letter of credit, surety bond or in such form as approved by the City Attorney. 14. NOTICES Any notice or special instructions required to be given in writing under this agreement shall be given either by personal delivery to LICENSEE'S agent (as designated in Section 1 hereinabove) or CITY'S Director of Public Works as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO CITY: Mr. Lou Sandoval Director of Public Works City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 TO LICENSEE: Steven J. Hunt Executive Vice President/Chief Financial Officer Patrick Target Media Group, Inc. 737 North Michigan, Ste. 1300 Chicago, IL 60611 15. TERMINATION/CANCELLATION CITY may terminate this agreement for cause. LICENSEE shall be afforded a pre -termination notice and opportunity to respond prior to any such termination. LICENSEE shall have the right to cancel the contract or remove shelters for reasonable cause. The CITY shall receive ninety (90) days prior notice to such cancellation. All ..shelters that are removed due to cancellation or termination shall have the location restored to the original site condition acceptable to the Director of Public Works. The costs of all restoration will be borne by LICENSEE. 16. SALE OR TRANSFER OF CONTRACT It is of importance to CITY that the holder of this contract has both the industry experiences and financial capability to carry out the terms and conditions of this contract in a 7 MhAgreeTatrick Target MediaV6l29/94 professional manner. Therefore, this contract shall not be sold, leased or transferred in any form without prior approval of the City Council. 17. AUDIT AND RETENTION OF RECORDS LICENSEE will allow a reasonable inspection and audit of applicable books and records by authorized CITY officials -and firms authorized by CITY to perform such function at its Tustin offices during reasonable business hours for the sole purpose of determining that the revenues due to the CITY are accurately made. All records are to be retained for three (3) years from the ending period on any year. 18. LEGAL SERVICES SUBCONTRACTING PROHIBITED LICENSEE and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. LICENSEE understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and. CITY shall not be liable for payment of any legal services expenses incurred by LICENSEE. REST OF PAGE NOT USED 8 5V\Ag=-.Patrick Target MediaVMW94 19. ENTIRETY The foregoing sets forth the entire agreement between the parties. IN WITNESS WFIEREOF, the parties hereto have caused this agreement to be executed by and through their authorized offiicers,the day, month and year first above written. LICENSEE: PATRICK TARGET MEDIA, a limited partnership, By: PATRICK TARGET MEDIA, a Delaware Corporation, general partner j�s�.tce• JC. SC � CJ �L ' print name ITS: (circle one) Chairman/Presiden ice President By. --- --- S'�'ti6j.F—� _print name ITS: (circle one SecretaryhiefFinancial Officer/ sst Secretary -Treasure ATTE T: City Clerk CITY OF HUNTINGTON BEACK A municipal corporation of the State of California Mayor APPROVED AS TO FORM: 11Y Att6mey G � -30-►� INITIATED AND APPROVED: Direc- to of Public Works .9 3\sWgrx:Patrick Target Media106/29/94 LICENSE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND SHELTER VISION MEDIA, .INC., dba SHELTERVISION TO PROVIDE FOR TRANSIT ADVERTISING SHELTERS THIS AGREEMENT is made and entered.into this v�� S� day of vem r 1994, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter called CITY and SHELTERVISION MEDIA, INC., dba SHELTERVISION, a California corporation, hereinafter called LICENSEE. WHEREAS, the parties mutually desire that CITY permit LICENSEE to provide transit advertising shelters in CITY and upon CITY sidewalks at.locations approved by the Director of Public Works of CITY. NOW, THEREFORE, the parties covenant and agree as follows: 1. DURATION This agreement shall remain in force until December 31, 1998, unless previously terminated as hereinafter provided. This agreement may extended upon mutual consent of both parties. 2. COMPENSATION LICENSEE shall pay to the CITY a fee of One Hundred Dollars ($100.00) per month per shelter, or 15% of gross advertising revenue, whichever is greater. This minimum per shelter fee will be increased by Five Dollars ($5.00) per year beginning January 1, 1995, and by a same amount each successive year on the first day of January during the term of this agreement. This minimum fee per shelter shall be payable quarterly (i.e. January 1st, April 1st, July 1st and October 1st) in advance. Fees are non-refundable unless the CITY requests removal of a shelter. A listing will be provided to the CITY each quarter showing each shelter, the advertisings, and revenue for that location. The listings will be due April 30th, July 31st, October 31st and January 31st. . 1 GWsheftert /10/17/94 Any additional monies due the CITY in excess of the annual minimum will be paid no later than July 31 st. Fees received after the due date are subject to 10% per month penalty. If fees are delinquent more than 60 days, the CITY may declare the contract voided and order removal of all shelters. The shelter and location covered by this license agreement are listed on Exhibit "A" and made a part of this agreement. LICENSEE may request additional shelter locations. The Director of Public Works will determine if the location requested fills a need and grant additional locations. Such new locations will be subject to the same expiration date and terms as this contract. All new locations will require payment of all permits and fees as are established by ordinance or resolution. In addition, a one-time fee of $500 will be required for each additional location. Advance minimum fees for new shelters will be prorated to January 1st. Where more than one company requests the same location, the CITY will award the locations alternately to each company. 3. NON-EXCLUSIVE RIGHT TO ERECT SHELTERS The rights granted herein are not exclusive, and during the terms.of this agreement CITY may grant to any other company or individual the right to erect advertising shelters on public streets and sidewalks within its corporate limits. 4. TYPE OF SHELTER All shelters will include a bench, roof and side panels. Back and side panels will be constructed of tempered bronze glass or a material authorized in writing by the Director of Public Works. A map display case is desirable. Shelters will be of approximately the following dimensions with a minimum of 4 feet clearance between the shelter and the curb face.; a. 17 feet in length b. 5 feet in depth 2 Mshefteri /10117/94 C. 8 feet, 6 inches in height _ Advertising panels are limited to two illuminated panels, with each display face measuring no more than 48 inches wide and 72 inches high. Shelter advertising panels and overhead roofing shall contain lighting to , illuminate the inner area of the shelter. LICENSEE shall furnish and pay for all electrical connections and the energy used and supplied to the shelters and shall indemnify CITY against any and all costs arising from the use, maintenance and construction thereof. Each shelter shall come equipped with one 22 gallon trash receptacle furnished by the shelter company. Shelters shall be illuminated from dusk to dawn. Solar powered shelters may have reduced hours of illumination from dusk to midnight. Materials to be used.will be subject to CITY approval. Materials should withstand corrosive elements and be finished to resist graffiti. Typical materials will be aluminum, tempered glass, steel supports and polyesters. Each shelter will clearly display identification; shelter company's name and phone number and a CITY supplied shelter number. Each shelter shall comply with all applicable government codes -and regulations including design specifications as may be set forth by the CITY. 5. MAINTENANCE Each shelter and the immediate area around each shelter shall be inspected, cleaned, and trash receptacles emptied not less than two (2) times per week. Each shelter and bench and the immediate area around each shelter and bench shall be steam cleaned as needed but not less than twice each year. If shelter or bench damage or vandalism is such that the public could be exposed to a dangerous situation while in or near the shelter or bench, LICENSEE shall repair or, if necessary, remove the entire shelter.or bench within twenty-four (24) hours of notification 3 Wshetterl/10W/94 and it shall be replaced and/or made fully operational at the same location within five (5) working days after removal. Graffiti and vandalism will be checked for during the twice weekly cleaning operation. All graffiti found by such crews or by reports from citizens or the CITY will be removed within five (5) working days. A twenty-four hour emergency telephone number shall be supplied to the CITY. 6. PERMITS, FEES AND LICENSES LICENSEE will obtain all permits and for business license and pay the costs and fees regularly assessed by CITY. 7. TYPES OF ADVERTISING LICENSEE shall utilize shelters only for advertising material and will not permit obscene, indecent and vulgar advertising. No shelter may advertise tobacco products. Alcohol advertising will be limited to beer and wine and no more than twenty percent (20%) of the shelters will be allowed such advertising at any one time. No alcohol advertising may be displayed within 500 feet of school, church or CITY park. LICENSEE will withdraw any shelter advertising which CITY in its sole discretion determines to be inappropriate and such advertising shall be removed upon twenty-four (24) hours notice of such determination. LICENSEE shall make up to five percent (5%) of space available for public service advertising. Public service advertising space is to be provided only when not rented to an advertiser. 8. SITE LOCATIONS The location of shelters will be chosen by mutual agreement of the Public Works Director and an authorized representative of LICENSEE. In the event relocation of bus shelters is requested by CITY due to development or redevelopment of certain areas, changes in bus routes, or at the discretion of the Public Works Director, LICENSEE will remove and relocate such shelters and bear all costs of restoring the sites and relocating each shelter. 4 6/WsheRerl /10/17/94 All shelters at new locations will be erected within sixty (60) days of CITY approval. 9. INDEMNIFICATION AND HOLD HARMLESS LICENSEE hereby agrees to indemnify, defend, and hold and save harmless CITY, its officers and employees from any and all liability, including any claim of liability and any and all losses or costs arising out of the negligent performance of this Agreement by LICENSEE, its officers or employees. 10. WORKERS' COMPENSATION LICENSEE shall comply with all of the provisions of the Workers Compensation Insurance and Safety Acts of the State of California, the applicable provisions of the California Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless CITY from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney fees and costs presented, brought or recovered against CITY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by LICENSEE under this agreement. LICENSEE shall obtain and furnish evidence to CITY of maintenance of statutory workers compensation insurance and employers liability in an amount of not less than $100,000 bodily injury by accident, each occurrence, $100,000 bodily injury by disease,, each employee, and $250,000 bodily injury by disease, policy limit. 11. INSURANCE ' In addition to the workers' compensation insurance and LICENSEE'S covenant to indemnify CITY, LICENSEE shall obtain and furnish to CITY the following insurance policy covering the services provided under this agreement: A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify LICENSEE, its officers, agents and employees, while acting within the scope of their duties, against any and all claims arising out of or in connection with the services 5 6/Wsh etteri /10117/94 provided herein, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name CITY, its officers, and employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the service provided herein, shall be deemed excess coverage and that LICENSEE'S insurance shall be primary. 12. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED ENDORSEMENTS Prior to commencing performance of the work hereunder, LICENSEE shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this agreement; said certificates'shall provide the name and policy number of each carrier and policy, and shall state that the policy is currently in force and shall promise to provide that such policies will not be canceled or modified without thirty (30) days prior written notice of CITY. LICENSEE shall maintain the foregoing insurance coverages in force until the work under this agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of CITY by LICENSEE under the agreement. CITY or its representative shall at all times have the right to demand -the original or a copy of all said policies of insurance. LICENSEE shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. A separate copy of the additional insured endorsement to each of LICENSEE'S insurance policies, naming the CITY, its officers and employees as Additional Insureds shall be provided to the City Attorney for approval prior to any payment hereunder. 6 Wshetterl /10/17/94 13. RESTORATION BOND LICENSEE will post a $500 per shelter restoration bond. The bond may be in the form of an irrevocable letter of credit, surety bond or in such form as approved by the City Attorney. 14. NOTICES, Any notice or special instructions required to be given in writing under this agreement shall be given either by personal delivery to LICENSEE'S agent (as designated in Section 1 hereinabove) or to CITY'S Director of Public Works as the situation shall warrant, or by'enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO CITY. TO LICENSEE: Director of Public Works David Ravo, President City of Huntington Beach ShelterVision 2000 Main Street P.O. Box 49180 Huntington Beach, CA 92648 Los Angeles, CA 90049 15. TERMINATION/CANCELLATION 1. CITY may terminate this agreement for cause. LICENSEE shall be afforded a pre -termination notice and opportunity to respond prior to any such termination. LICENSEE shall have the right to cancel the contract or remove shelters for reasonable cause. The CITY shall receive ninety (90) days prior notice to such cancellation. All shelters that are removed due to cancellation or termination shall have. the location restored to the original site condition acceptable to the Director of Public Works. The costs of all restoration will be borne by LICENSEE. - - 16. SALE OR TRANSFER OF CONTRACT It is of importance to CITY that the holder of this contract has both the industry experiences and financial capability to carry out the terms and conditions of this .contract in a 7 - 6MsheRerl/10/17/94 professional manner. Therefore, this contract shall not be sold, leased or transferred in any. form without prior approval of the City Council. 17. AUDIT AND RETENTION OF RECORDS LICENSEE will allow a reasonable inspection and audit of applicable books and records by authorized CITY officials and firms authorized by CITY to perform such function at its Tustin offices during reasonable business hours for the sole purpose of determining that the. revenues due to the CITY are accurately made. All records are to be retained for three (3) years from the ending period on any year. 18. LEGAL SERVICES SUBCONTRACTING PROHIBITED LICENSEE and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. LICENSEE understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by LICENSEE. REST OF PAGE NOT USED 8 & Wshefterl /10/17194. 19. ENTIRETY - The foregoing sets forth the entire agreement between the parties. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by and through their authorized officers the day, month and year first above.written. LICENSEE: SHELTE�j VISION MEDIA, INC., dba SHELTERVISION io z6-9Y By; . print name ITS: (circle one) Chairma Aden ice President 3 -u- ?Cr By: tt r�RcE-r KAVo print name ITS: (circle one) ecretary/Chief Financial Officer/Asst. Secretary -Treasurer ATT T: City Clerk AP City Administrato CITY OF HUNTINGTON BEACH, A municipal corporation of the State of California - Mayor APPROVED A TO FORM: City Attorney /'0 y� INITIATED AND APPROVED: Director oWublic Works 6/Wshettert /10/17/94 01 /13/99 10: 53 E" ER MEDIA CO 714 374 1573 NO.674 P02 09:43 January 13, -------------------------------------------------------------------------------------------------------------------------- 1999 LOC&TIMS =A&US 1 Transit Shelters - C I R C V L A T I 0 N Loc.R Pace Axes Route Facing Ill. Ride r unit Type Bonsal. Inset. .from. To Ped Autol Auta2 Auto3 17th S/O Main HS - Huntington Bch 1458 Lease A: ORC-337e2 Perin Si 1460 I RB KM N 18 857 rS Shelters 0.0 20..2 0.0 0.0 Adams E/O Beach 05 - Huntington Bch IS70 Lease ORC-RT32 Permit #z 1470 I R9 rN W 1s 850A6 Shelter* 0.0 '23.6 0.0 0.0 Adams w/o Magnolia xG - Huntington Bch 1473 Lease #: ORC-HTB2 Permit p: 1473 I RB N'4 S 18 858 C6 shelters 0.0 23.6 0.0 0.0 Adams E/O Fagnolia SS - Huntington Bch 14T4 Lease 0: QAC-HTB2 Permit #: 1474 I HB MH W 18 858 C6 Shelters 0.0 21.6 0.0 0.0 . Adams W/O Sutton 17S - Huntington Bch . 1477 Lease #: ORC-ETI82 Permit 0: 1477 I RB MW 8 lI 858 F? Shelters 0.0 23.6 0.0 0.0 Adams W/o Brookhuret Ns - H'untington Bch 1179 Lease #: ORC-XT33 Permit 8: 2479 1 H9 Mw E 18 858 E6 Shelters 0.0 23.6 0.0 0.0 Beach W/O Stark WS - Huntington Bch 1490 ` Lease S: ORC-NTB2 Permit E: 148o I X3 MM N 18 321 A6 Shelters 0.0 43.2 0.0 0.0 Beach 5/0 warner wS - Runtirigton Bch 1482 Lease #: ORC-i3T82 Permit 8: 1482 I 19 MM N 18 629 A7 eheltera 0.0 4.1.2 0.0 0.9 Beach N/0 Ellie is - Huntington Bch 1455 Lease #: ORC-ST22 Permit R: 1485 r H3 Mw S 12 658 Ai Shelters 0.0 40.5 0.0 0.0 ------------------- -............................. Bglea E/0 Dole& Chica VS - Huntington Bch ..------------------------------------------------------------------------ 1487 Lease 4: ORC-AT82 Permit 0: 2487 1 HB MH E 13 827 D4 Shelters 0.0 14.5 0.0 0.0 --------------------------------------------------------------------------------'-----....--------------------------------- Bolsa Chica SIO Rancho E6 - Huntington Bch L409 Lease 0: QRC-HTB2 Permit B: 1489 I Hs MM S 12 827 s3 Shelters 0.0 25.0 0.0 0.0 ............. .------------------------------------------------------------ Solsa W/O Able US - Huntington Bch 1491 •-------------------------------------- Lease 0: ORC-STS2 Permit 0: ---....... 101 1 H3 MM 2 12 e27 E3 Shelte:s 0.0 12.8 0-0 0.0 ._-••--•--.-•--.----------------------------------------------------------------------------------------------------------- Bglsa E/O Springdale SS - Bunti4gtcn Bch 1492 Lease 0: ORC-STB2 Pasant 0: 1492 I RS M W 12 627 P4 Shelters Iaact 97/04/Ol 98/12/01 0.0 16.2 0-0 0.0 Bolea Chica N/0 Heil 88 - Nuntirrgtaa Bch 1495 Lease 0: ORC-HTB2 Permit 9: 1495 1. HB MM S i8 821 D6 8helte:e 0.0 23.7 0.0 0.0 8rookhuret N/0 Adams ES - Huntington Bch 1497 Lease #: ORC-BTH2 Permit 0: 1497 I RB M 6 18 8S8 b6 Shelters 0.0 29.0 0.0 0.0 erookhuret W/O Atlanta ES - Huntington Bch 1499 .Lease #: ORC-HTB3 Permit 0: 1499 1 98 Mw S 18 s88 Bl Shelters 0.0 18.2 0.0 0.0 BYookhurst S/O Hamilten US - xuntingtoh Bch 1500 Lease 0: ORC-ST92 Permit 2: 1500 I BB Mw N i8 888 E2 Shelters N/8 0.0 21.6 0-0 0.0 ------------------------•--...--....-...-.--------------------------------------------------------------------------------- Edinger 9/0 ooldenwest N9 - Huntington Bch 1503 Lease is CRC-8I32 Permit #: 1S03 I H3 MM E 18 427 RS shelters 0.0 26.3 0.0 0.0 rller aedia - orange county Charting Pro 6.8r6 01/13/99 10:53 ELLER MEDIA CO 4 714 374 1573 IU.674 00., 09:43 January 13. 1999 LOCATIM DATANABB 2 Trureit shelters 2 R C 0 L A T I 0 N; Loe.6 Pace Area Route Facing I21. Ride # Cait Type Iroasal. Inact. Trom To Yid Autol Autea Aut03 Edinger E/o.Goldenrest SS - X=tingtca Be#t 1594, Lease Q: ORC-T=2 Permit E: 1504 I BE mm W 12 827 k5 Shelters .0.0 25.3 0.0 - 0.0 Edinger E/O finer 68 - Huntingtoa'Bch 2.506 Lease 0: ORC-XT32 Permit 6: 1306 I sm DLM v 18 827 J6 Shelters 0.0 26.3 0.0 0.0 Edinger W/0 Parkside SS - Runtitgton Beh 1500 Lease #: ORC-2=2 Yezmit #_ 150E I Rib xx it 18 827 06 Shelters 0.0 26.3 0.0 o.o Edinger W/o Beach 86 - Runtingten Bch 1511 Lease is ORC-&TH2 Permit $: 1511 1 RID NX B 18 928 AS Shelters 0.0 36.3 0.0 0.0 Garfield W/O Beach WS - Runtington Bch IS13 Lease •: ORC-RT82 Permit 4: 1513 I RS K4 E SS 250 A4 Shelters 0.0 9.2 0.0 0.0 CQldenmeet 8/0 Edinger WS-.Euntingtoa Bch 151E Lease 8: ORC-RT81 Permit 8: 1514 I Rib FM N 12 827 G6 Shelters 0.0 28-4 0.0 0.0 --------------- ------------------------------------------------------------------------------------------------------ Coldctweet N/O Warner ES - Runtington Bch 1517 Lease #: ORC-ATa2 Permit #: 1S17 I H3 M S 18 827 317 6helters 0-0 27-7 0-0 0,0 Gothard S/O Center WS - Ru=tiagton Beh Isis Lease #: ORC-ET2,2 Permit #: 1518 I FI3 M19d N 12 $27 RS shelters 0.0 11.5 0.0 0.0 Magnolia 5/0 Garfield WS - Runtington Bch 15d0 Lease 8: - ORC-RT82 Pera,it #: 1520 I 19 M8 N 1s 859 C4 Shelter$ 0.0 29.1 0.0 0.0 ------------------ ........................... Magnolia N/O 8tillmell 36 - Huntington ..---------------------------------------------------------------------------- Bch 1523 Lease #: ORC-HTB2 Permit k: 1523 I ii$ K11 S 12 es8 Ca shelters 0.0 12.5 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Hagnolia W/O Hamilton 14S - Huntington Bch 1524 Lease #: ORC-HTb2 Permit 9: 1524 I HE MR N i8 eaS C2 Shelters 0.0 12.5 0.0 0.0 Main W/O Dtlaoarc B$ - HNntington Bch 1527 Lea$c 4: ORC-UT82 Permit 8: 1577 I a M 8 18 857 J4 Shelters 0.0 10.1 0.0 0.0 Fiala 9/0 Yorktown BS - Huntington Bch R.529 Lease #. ORC-HTBa Permit 4: 1525 I FIB MM S 1s 857 HS Shelters 0.0 10.1 0.0 0.0 PCS S/O llth WS - Huntington Bch 1530 Lease #: ORC-RT82 Permit $: 1530 I Na Rini N 19 887 21 Shelters 0.0 23.6 0.0 0.0 ---------------------------------------------------------------------- PCH 8/0 Main ES - Huntington Bch ---- -- 1533 -•------------------------------------------- Lease #; ORC-HT22 Permit C: IS33 I HB M S 18 887 R2 S40ters 0.0 23.6 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- SCH 9/0 hake WS - Yvu:tington Bch 1534 Lease #+ ORC-KT22 Permit 4: 1534 I HB F44 N 18 887 J2 Shelters 0.0 23 6 0 0 0.0 PCX N/o coach ES - Huntington Bch 1537 Lease $: ORC-RT83 Permit #: IS37 I HB M 6 12 see A3 S3eltera 0.0 22.3 0.0 0.0 Talbert W/O St. Vlncaot Pe Paul WE - Huntington 1539 Lcvsc #: OAC-ST82 Permit #: 1539 I RE NN 5 18 -------------------- --...... ------------------------------------------------------------------- 858 A2 Shelters 0.0 11.5 ............................ 0.0 0.0 ---------------------------------------------------------------------------------------------------------------------------- Eller Media - Orange County Charting Pro 6.8r6 bli13i99 10:54 ELLER MEDIA CO ?14 3?4 15?3 NO.6?4 PO4 _ 09: 43 January 13. 1999 L4Cl2IOH! nxT7,.D7:1; :. 3 Transit Shelters (Cott.).. .'_.. C I itCU LAT x O q' , Loc•# Face Area Route Racing Ill'. hide # Unit Type 3loabal. Iuact.`-From To Dad Autoi Autc2 Auto3 --------------------------------------------------------------------------------------------------------------------------- warncr 3/0 Green Ss - Huntington Bch 1540 Lease p: ORC-3iT82 Permit a: 1560 2 H5 M w 18 857 ax ehcltsre 0.0 21.6 0.0 0.0 --------------- ...... Warner WO Leslie YS - RUntingtoa Bch - -... - -----. . 1513 Lease I. ORC-HT82 Permit 4: 1543 1 RB MN 8 is 857 D1 Shelters - 0.0 20.3 0.9 0.0 Warner E/O Leslie SS - 1Cuntingtoa Bch 1514 Lease A? ORC-BTB2 Pcrmit Y: 1544 I BB M4 w is 857 D1 Shelters 0.0 20.3 0.0 0.0 Warner 3/0 Springdale SS - Huntington Bch 1546 Ret.: 1339/01/13 Lease #: OBC-8TB2 Permit #: 2549 I Im MM W 12 857 Fi Shelters Nis 0.0 24.3 0.0 0.0 Warner W/O Nichol0 NS - Buntitgton Bch 1549 Lease #: ORC-HT152 Permit #: 1549 I 133 P" 3 18 827 J7 Shelters 0.0 23.0 0.0 0.0 Warner W/O Beach 88 - luntington Bch 1550 Lease #: OhC-=2 Permit #: 1550 I H8 hm W is 828 A7 Shelters 0.0 23.0 0.0 0.0 Torktamn W/O Main VS - Huntington Bch 1553 Lease #: OAC-AT32 Permit #: 1553 I H3 NP7 s 18 857 US Shelters 0.0 10.1 0.0 0.0 PCH S/O 28th 88 - Puntington Bch 3497 Lease #: ORC-HTB2 Permit 9: 2137 1 H3 nq 8 i8 e26 J7 Shelters 0.0 0.0 0.0 0.0 Beach A/o Utica ES - Buatirgton Bch 2459 Lease I: ORC-MZ Permit #: 2499 I- HB MG a 18 858 AS Shelters 0.0 0.0 0.0 0.0 Beach 3/0 McDenald'wS - Huntington Bch 3501 Lease #: ORC-=2 Permit $: 2501 I as beg N is 928 A6 Shelters 0.0 9.0 0.0 0.0 ------------------------------ -------------------------------------------------------------------------------------------- PCX S/O Buntizgton WS - Huntington Bch 3503 Lease #: CAC-STS2 Permit #: 2503 1 n MH N 18 857 J2 Shelters 0.0 0.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- PCH 0 Driftwood 8a - Runtington Bch 2505 Lease 0: OkC-3T82 Permit #: 2505 I ;M MM 8 is Sae A2 Shelters 010 0.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- PCH a Lake ES - Runtington Bch 2507 Lease #: ORC-HT82 Permit &: 2507 I BB MN 5 1s 687 J2 Shelters 0.0 0.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Scach 9/0 Adams ES - Huntington Bch 3509 Lease #: ORC-8T82 Permit 0: 2509 1 118 MSP 8 18 858 A6 Shelters 0.0 0.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Beach 8/0 Main WS - Runtington Bch 2511 Lease $: OAC-HTB2 Permit #: 2511 I HB MM N i8 e5a A3 shelters 0.0 0.0 0.0 0.0 Beacb S/O Talbert WS - Huntington Bch 3513 Lease #: ORC-RTB2 Permit #: 2513 I HE MM N 18 eye A2 shelters 0.0 0.0 0.0 0.0 --------------------------------------------------------------- Beach 2/0 Taylor WS - Huntington Bch ----------------------------------------------------------- 2513 Lease Q: ORC-ST82 Permit A: 2515 I HB MM Y is 858 A3 Shelters 0.0 0.0 0.0 0.0 ...................................... ----------------------------------- PCR S/O seach WS - Runtirgtot Bch -------------------------------------------------- 3517 Lease #: ORC-N= Permit #: 2517 I IQ MW Y 18 $98 A3 Shelters 0.0 0.0 0.0 9.0 Eller ?Sadia - Orange Couxty Charting Pro 6.8r6 01/13/99 10:54 ELLER MEDIA CO -► 714 374 1573 NO.674 D0� 09:43 January 13. 2999 LOCA?IOHS DATAn198 4 tranalt SheltersMont.) _ C I A C U L,A T I 0 N Loc.B Face Area Routs Facing Ill.. .. _:.------------------- ----------------------- Ride 8 truit.Trps .--- Xotlsal. --- ------- Enact. From - 10 Fed A1tLo1 Auto2 Autol ...Fn 9/0 lath WS - Huntingtoo Bch '. -.-----.--- 7519 ------------....--------------.------------- Lease /: ORC-�2 Permit #: 2519 I ES MK N 18. 987 81 Shelts=s 0.0 0.0 0.0 0.0 _ _.-- ..._ _ - ra S/O 9th BS - Huntington Bch _ 2521 Lease 4; ORC-Wr22 Permit is 2521 I HS MM 8 is 857 El shelters 0.0 0.0 0.0 0.0 PCR 8/0 Newland WS - Rumtington Bch 2333 Leas• 4: ORC-ET32 Permit #: 2523 I 103 MW N is 888 33 Shelters 0.0 0.0 0.0 0.0 PCR s Driftwood WS - Huntington Bcb 7515 Lease A. ORC-STS2 Permit b: 2535 I FM M N 18 885 A2 Shelters 0.0 0.0 0.0 0.0 PCB 8/0 9th WS - Buntlggton Bch 2537 Lease 0: ORC-UT22 Permit 0: 2527 I HS Mx N 18 537 H1 Shelters 0.0 0.0 0.0 0.0 PCH N/0 Admiralty 33 - Huntington Bch 2529 Lease #: ORC-ITi83 Permit #= 2529 I fib MH $ 19 026 07 Shelters 0.0_ 0.0 0.0 0.0 PC8 S/0 Lake SS - h'untlugton Bch 2531 Lease #: ORC-NTB2 Permit #: 2531 I M MH N is 887 J2 Shelters 0.0 0.0 0.0 0.0 Beach N/0 Aldrich W9 - Runtington Bch 2533 Lease #: ORC-HTB2 Permit #: 2S33 I H3 MA 8 18 $21 AS Shelters 0.0 0.0 0.0 0.0 PCB N/O Coral Cay ES - Ryptington Bch 1335 Lease 3: OAC-RT82 Permit #: .2535 I iB MH 8 I 857 Al Shelters 0.0 26.5 C.0 0.0 Beach 8/0 Slater Ws - Huntington Bch 2545 Leave #: ORC-RT32 Permit #: 2545 1 RB MDR N 18 658 Al Shelters 0.0 0.0 0.0 0.0 ----------------------------------------------------------..........----------------------------------------.-.....-•------ Beach 8/0 Adams Sob - Huntington Bch 2547 Lease #: ORC-BT82 Permit #: 2547 I AB MM N 18 85a AS Shelters 0.0 0.0 0.0 0.0 ----.--.....---------------------------------------------------------------------------...------------------- Beach N/0 Garfield ES - Huntington Bch 2349 Lease 0: .........---- ORC-HT82 Permit #: 2S49 I HB MW S 18 858 U Shelters 0.0 0.0 0.0 0.0 Beach B/0 Yorktown V9 - Huntington Bch 2551 Lease 9: ORC-=2 Permit 9: 2551 I RB MN H 18 858 AS Shelters 0.0 0.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Brockh%ret 5/0 Hamilton so - Huntington Bch 2353 Lease 9; ORC-HT82 Permit #: 2553 I He MW 8 18 aa8 E2 shelters 0.0 0.0 0.9 0.0 Warner W/O Golden West N9 - Huntington Bch 2335 Lease #: ORC-ETB2 Permit 0: 2SS5 1 HS r^6 r 18 857 R1 Shelters 0.0 0.0 0.9 0.0 Edinger 8/0 Golden West SS - 8untingtca Bch 2585 Leaoe #: ORC-=3 Permit #: 2585 I RB M W 18 427 R6 Shelters HIS 0.0 0.0 0.0 0.0 Adams Ave. 200 FT W/O BreokhuVpt 8t 86 3095 Leave #: ORC-8T81 Permit #: 53-10:325 3095 I HS MW N 24 -------------------------------------------------------------------------------------------------------------------------- 358 36 Small °V• Add Panel 0.0 35.0 0.0 0.0 Adams Ave. 200 FT 8/0 Brcokhurst St. 96 - 3097 Lease #: ORC-HTB1 Permit #: TIt= LSY' 3097 I RB W4 W 24 ....... ----------------------------------- 658 86 Small •V* Add Panel ---------------------------------------------------- 0.O 42.0 •--------------------- 0.0 0.0 --------------------------------------------------------------------------------------- Hlle; media - Orange County Charting Pro 6.8r6 01,/13i99 10:55 ELLER MEDIA CO 714 374 1573 NO.674 ME 09:43 January 13. 1999 LOCATIOXV DAT"A38 5 - Transit Shelters (Cont ---;--. C I R C U L A T I O 8 Lcc.# Face Area Route racing Ill`. Rids 0 Unit Type Noaaal: matt. .Frets To Ped Aut02 Aut02 Auto3 Algonquin St. 190 F1 SID Davenport Dr. ES - 3099 Lease N. ORC-8T82 Permit #: 3099 r as PO4 6 33 557 C1 Small °V. Add Panel 0.0 13.0 0.0 0.0 Beach Blvd. 100 FT 9/0 Garfield Ave. ,WS - 3202 Lease #: ORC-ml Permit #: ;- .- 3102 r K3 Mm A 22 _-.- eSS A4 Small 'V' Add Panel - 0.0 58.0 0.0 O.0 --------------------------------------------------------------------------------------------------------------------------- Beach Blvd. 100 PT 9/0 Crazadio Dr. ES - 3206 Leave 4: ORC-Umal Formic #- BzM% =-I 3104 I Es MW a 24 858 A4 Small 'V' Add Panel 9.0 41.0 0.0 0.0 Beach Blvd. too PT S/O Reil Ave. WS - 2tuntington 3105 Lease #: ORC-MI Permit 1: NTB DO= 3105 I RB M D1 12 82a A6 Small 'V' Add Panel 0.0 60.0 0.0 0.0 Beach Blvd. too FT N/O Indianapolis Ave. as - 32BB Lease #: ORC-RTBI Permit #= 3100 I EB P^PI 8 12 858 A7 Small 'V' Add Panel 4.0 25.0 0.0 0.0 Beach Blvd. 100 Fr W/O Indianapolis Ave. WS - 3110 Lea" #: CRC-RTB; Permit 8: RILLTOP LQ 3110 I B$ Md IN 18 858 A7 Small 'V' Add Panel 0.0 25.0 0.0 0.0 Beach Blvd. 100 FT KID Memphis Ave. WS - 3112 Lease 0: ORCGHTBI Permit v 3112 I lt8 PC4 N 12 858 A7 Satisll 'V' Add Panel 0.0 2S.0 0.0 0.0 Reach Blvd. 100 PT S/0 Newman. Ave. ES - W%=tington 9114 Lease #: ORC-RT83 Permit 9: 3114 1 ma MW a 12 858 A2 Stoall 'V' Add Panel 0.0 59.0 0.0 0.0 Reach Blvd. 200 FT S/0 Slater Ave. ES - Runtingtoa 3116 Lease.$: ORC-RT81 Permit #: SF.DPPII*'G C 3116 1 - BB MN 8 12 65; Al Small 'V' Add Panel 0.0 53.0 0.0 0-0 Beach Blvd. 100 FT W/O Talbert Ave. 96 - 31/8 Lease 0: O3C-tt7.8i Permit 9: 203.008778 3119 I --------------------------------------------------------------------------------------------------------------------------- H3 Mot S 24 BSa A3 Small 'V' Add Panel 0.0 59.0 0.0 O.0 Beach Blvd. 100 FT SID Terry Dr. W$ - Buntington 3120 Lease #: ORC-RTSI Peru #: TOM BERNAT 3220 I HB Mx N 24 828 A7 $Mall 'V' Add Panel 0.0 60.0 0.0 0.0 Beach Blvd, 100 FT N/0 Kerner Ave. 53 - Huntington 3122 Lease #: ORC-RTSl Permit #: PMCDONA..DS 3222 1 K5 MW S 24 $38 A7 Small 'V' Add Patel 0.0 61.0 0.0 0-0 Beach Blvd. 100 PT N/0 Yorktown Ave. 53,- 3124 Lease #. ORC-BT81 Permit #: 3124 I RR MW S 12 858 AS Small 'V' Add Pavel 0.0 $6.0 0.0 0.0 --------------------- 8olea Ave. 100 ---`---------------- PT W/O GraEam St. BS '------------------ - Kuntingtcn ............................................................... 3128 Lease 9: ORC-RTel Permit #: 3-220551 31.28 I --------------------------------------------------------------------------------------------------------------------------- RB RM W 24 827 E4 Small 'V' Add Panel 0.0 12.0 0.0 0.0 eolsa Ave. 100 rT W/O Sabre La• NO - Buntington 3130 Lease #: ORC-RT31 Perm.1t #: 3130 1 RB MM F 12 827 P4 Straight Add Panel 0.9 24.0 0.0 0.0 Bolaa Ave. 100 FT W/O Victoria Ln. 88 - Runtington 3132 Lease #; ORC-RTBl Permit #: D. MAIJALA 3212 I --------------------------------------------------------------------------------------------------------------------------- ]a MN u 24 827 G4 Snell 'V' Add Panel 0.0 25.0 0.0 9.0 Brookhurat St. 100 rT 6/0 Atlanta Ave. WS - 3134 Leave #: ORC-31TB1 Permit #; 3134 I --------------------------------------------------------------------------------------------------------------------------- 30 MW N 1s aa8 E1 Small 'V' Add Panel 0.0 40.0 0.0 0.0 Brookhurst 3t. 100 PT $10 Busbard St. US - 3136 Lease #: ORC-BTB1 Permit 9: J136 I 30 MW 17 12 Gas Dd 6n211 'V' Ads .Panel 0.0 24.0 0.0 0.0 Eller Nsdia - Orange county Charting Pro 6.8r6 01 i13/99 10: 55 EL..LER MEDIA CO -+ 714 374 1573 NO.674 00' 09:41 January 13. 1999 LOCaZrOg! tAZAZW3 6 Transit Shelters _'' (Cont.) = C I ACUL AT I 07P oc.# Face 1�r Lea Route lacing Ill. Rids 4 Unit Tyye Noae81- inset. From To Pad Autol Auto2 Auto3 Bzookhuret St- 100 PT OPP Cliff Or- W8 - 3139 Lease P: 02C-RsS1 Permit #: 317@ I 2C3 HW N 12 ` 868 91 Small IV Add Panel 0.0 27.0 0.0 0.0 _ _ _.. - Brookhuret St. 100 P: 6/0 Indianapolis Ave. US - 3240 Lease 0; ORC-RTB1•Permit It; 3140 r RB I4W N - 22 858 37 Small °V' Add Panel 0.0 27.0 o.o 0.0 Srookhurat St. 100 FT WO JWXUI, Dr. IS - - 3142 Lease #: ORC-R721 Permit #: 3-114290 3142 I Im MW 8 24 858 ES Small •V• Add Panel 0.0 45.0 0.0 0.0 Brookhurat St. 100 PT 8/O Yorktown Ave- W8 - 3144 Lease #: CAC-=Bl Permit 8: 3144 1 H8 MW N 12 8S8 55 Small •V' Add Panel 9.0 43.0 0.0 0.0 Brookhurst St. 100 PT Dt/O Yorktown Ave. 88 - 3146 Lease is CAC-Ml Permit 8: 53-037915 3146 1 HE DEW a 24 858 YS straight Add Pansl 0.0 45.0 0.0 9.0 Delaware St- Igo FT N10 CI4Y Ave. ES - Suntington 3118 Lease 4: CRC-RTBl permit #: 314@ 1 YH iID2 �8 12 857 JS Smal •V' Add Panel 0.0 3.0 0.0 0.0 Edinger Ave. 100 FT OPP Edinger Plaza SS - 3150 Leave 8: ORC-8TB1 Permit #: WjNCHZLi.18 3150 1 ES M N 24 827 05 Small -v Add Panel 0.0 3110 0.0 0.0 Edinger Ave. 100 FT E/O Gothard at. SS - 3152 Leas* #: ORC-Ml Permit #: 3152 2 SB DM W 24 827 ES Straight Ad9 Panel 0.0 39.0 0.0 0.0 Edinger Ave. 100 PT W/O Montgomery Wrd Piz US - 31S4 Leaaa #: ORC-RTB1 Pvxm1t k: MAWNLD RC 3154 I - Iis X4 E 12 '827 JS rzk=wn 0.0 39.0 0.0 0.0 Edinger Ave. 100 PT W/O Sher L.a_ US - RLntington 31SS Leans #: ORC-RTBI Permit #: 81'=GTN CT 3156 1 HS M E 12 827 JS straight Add Panel 0.0 39.o 0.0 0.0 -------------•------------------------------------------------------------------------------------------------------------- Garfield Avo. 109 PT 1/0 Plorida St. 6S - 3158 Lease it: OAC-HTB1 Permit #: 3158 I H3 MH w 12 a54 A4 Small •V' Add Panel 0.0 12.0 0.0 0 0 Coldenvest St. loo PT N/0 Yorktown Ave. BS - 3162 Lease #: ORC-bTal Permit #: 3162 I Ra io4 S 12 857 M Caknown 0.0 Z3.0 0.0 0.0 Kagnolla St. 100 FT OPP Bermud& Dr. 9WS 1 3194 Lease 6: ORC-MI Permit #: 3164 1 EB eAi N 12 980 C3 Large 'V- Add Panel 0.0 910 0.0 0-0 Warns; Ave. 100 PT 210 Rotterdam Ln. SS - 3166- Lease 9; ORC-=1 Permit 4! 3166 I FZ MW W 12 828 A7 Small 'v' Add Panel 0.0 21.0 0.0 0.0 Ramilton Ave. 100 rr W/O Brookhurst St. N3 - 3160 Lease #•- ORC-BTvI Permit 6: 3145 I R3 MW E 12 988 82 Larce 'V' Add Parwl H/S 0.0 24.0 0.0 0.0 Main St. 109 FT W/O Ellia Ave. NS - Huntington Bch 3170 Lease #- ORC-HTB1 Permit #: PLANTER 3170 1 89 MS1 E 24 558 A3 USkaewa 0.0 16.0 0.0 0.0 --------------------------------------------------I---------------------- ------------------------------------------------- Main St. 109 PT 3/0 Florida St- 88 - 8'uatingtoa 3172 Lease 9- ORC-Ml Permit #: 3172 I R8 MM a 12 858 A4 IIuMova 0.0 1G.0 0.0 010 --------------------------------------------------------------------------------------------------------------------------- McFadden Ave. 100 PT E/0 Product Ln. 68 - 3174 Leave #: ORC-BTBS permit #: 3174 I Ea K4 N 12 827 t5 Large 'V- AM Panel 0.0 9.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Eller Xedia - Orange County Charting Pro 6.er5 01/13/99 10:56 ELLER MEDIA CO 4 714 374 1573 NO.674 DOE 09.43 January 13, 1939 LOCR?ZC&5 VATAMASg 7 Transit Shelters' C I R C V L A T r a v al Loc.$ race Area Route Taclag Z12. Ride # Unit Type Noaeal..Zn.att. Tzom To Fed Autol Auto2 Anto3 - Orange Ave. 290 eT 9/O 17th St. WE - Huntington 3176 Lease S: OXC-HTBl Permit K: 53-105124 3174 I 93 M1 N 2s E57 H7 Shull -V- Add passel 0.9 3.0 0.0 0.0 PCH 200 PT N/O 6th Stt Zs Wu= ington Sch 317a Lease #: ORC-NIB1 Permit x: . 3278 r R5 mm 8 12 357 H1 Small oV+,Add Panel 0.0 33.0 0.0 0.6 PC$ 10o TT N/0 Anderson at. 85 - xuntingtcn Bch 3100 Lease #: ORC-RTBI Permit #: 3180 1 za sod S IS 926 J6 Small -V- Add Panel 0.0 45.0 0.0 0.0 Pez 200 TT !1/0 94ntirgton St. E8 - M ntinyton Bch 3132 Lease 8: ORC-ETB1 Permit 3: 53-OSso45 3183 I $g HM ----------------------------------------------------------------------------------------------------------------------- S 24 a87 J2 SMAll 'V' Add Panel 0.0 33.0 0.0 0.0 PCX 100 PT W/o let St. B8 - 1ntington Bch 3194 Lease #: ORC-BTB1 Permit $: UIMNOW 3184 I RS M S 24 887 472 Straight Add Panel 0.0 33.0 0.0 0.0 PCH 100 rr N/O let St. ws Huntington Bch 3196 Lease S; CRC-NT81 Permit 4: 3186 I. RS M1 �N 13 887 JZ Straight Add Panel 0.0 33.0 0.0 0.0 PCH 100 FT N/0 Hain St. wS - Huntington Bch 3198 Lease A; ORC-KrBl Permit $; 85.701577 3108 I HB KK AT 24 887 F2 Small ■V' Add Panel 0.0 31.0 0.0 0.0 PCH 100 FT 8/0 17th St. 8$ - Huntington Bch 3130 Lease is ORC-Moo Permit 4: PATRICK 3190 2 HH FM S 24 887 Cl Small •V' Add Passel 0.0 33.0 0.0 0.0 PCB 100 FT V/0 Warner Ave. 8S - Huntington Bch 3192 Lease 4: ORC-RTB1 Permit #: SHOPPINO.0 3192 I H$ PM S 24 $57 Al Small 'V' Add Panel 0.0 45.0 0.0 0.0 ------------------------ ------------------------------ ------------------------------------------------------------------ Springdale St. 100 FT 9/0 Bolaa Ave. wS - 3194 Lease 8: OAC-HTal Permit A: 3194 I HS MH N 12 827 F4 Small IV' Add Panel 0.0 30.0 0.0 0.0 Warner Ave. 100 TT W/O Algongain St. NS - 3196 Lease 8: OitC-ml Permit a: 3196 1 Hb M B 12 a57 Cl Straight Add Panel 0.0 26.0 0.0 0.0 -------------------------------------- Warner Ave. 100 PT W/O ------------------------------------------------------------------------------------ Beach Blvd. NO - Huntington 3118 Lease #: ORC-HTBl Permit 8: 3190 I H3 MM B 12 926 A7 Small 'V, Add Panel 0.0 34.0 0.0 0.0 warner Ave. 100 IT 8/0 Bolea Chica St. is - 3200 Lease #; ORC-BTBI Permit 8: A.l1ACGILAV 3200 I H8 Mx W 12 8S7 D1 Small 'V' Add Panel 0.0 30.0 0.0 0.0 earner Ave. 100 9T KIO Edwards St. NO - Huntington 3202 Lease #: ORC-h=l Permit 4: 3202 1 HB M" E 12 927 C7 Small 'V• Add Panel 0.0 28.0 0.0 0.0 Warner Ave. 100 7T C/O Ooldenveat St. SS - 3304 Lease S: ORC-ETBl Permit 9: 3-113028 3204 r HB MM W 24 827 H7 unkzOwn 0.0 36.0 0.0 9.0 warner Ave- 100 TT WIC Cothard St. 53 - Huntington 3208 Lease 9:: ORC-HT81 Permit 9: 3208 I 10 MM W 12 827 R7 Small 'V' Add Panel 0.0 36.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Warner Ave. 100 FT W/O Oothard at. US - Huntington 3210 Lease S: ORC-BTB1 Permit C: 3210 2 HB " L 12 827 H7 9 all 'V' Add Panel 0.0 36.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Warner Ave. 100 FT 9/0 Graham St. NS - Huntington 3212 Lease C; ORC-8T81 Permit #+ TERNSILL 3212 ; HE MN E 16 957 El Small -V- Add Panel 0.0 30.0 0.0 0.0 Eller Media - orange Cout,ty Chazting Pro 6.sz6 01/13/99 10:56 ELLER MEDIA CO -> 714 3?4 1573 NO.674 909 09:43 January 13, 1999 LOCATZ088 DATARASB g Transit sheltesa (Cont.) C I R C V L A T 1 0 N Loc.# race Araat Route Facing Ili. Ride C unit Type Norval. Znact. FYoto 70 Fed Aute1 Aut02 Aut03 Warner Ave. 100 FT W/O xagnolia at. He.- 3214 Lease #: ORC-BT81 Permit ¢: CASPER'S 7 3224 j EB Xn E 12 -. 828 C7 Small -V- Add Panel .0.0 21.0 0.0 0.0- Warner Ave. 100 FT`W/0 Newland st- N8 3216 L4aee is OAC-WMI Permit #: SAAO'8 SVC 3216 I Ra xv E 12 828 37 small IV' Add Panel 0.0 21.0 0.0 0.0 Warner Ave. 100 FT W/O Nichols St. 88 - iilamtington 3218 Lease #: GRC-H4'al Permit a: 3-118276 3218 I Y.8 M4 M 26 827 J1 Small °V' Add Pa'sel 0.0 34.0 0.0 0.9 warner Ave. 100 FT E/0 PCH SS - &yntSnyton Bch 3230 Lease #: Ouc-RTal Permit b: 732-0039339 3320 I 23 M W 28 857 Al Small *V# Add Panel 0.0 26.0 0.0 0.0 Warner Ave. 190 FT W/O Rotterdam La. N8 - 3232 Lease #: ORC-Kral Permit #: 3232 1 .HS I04 S 17 426 A7 small -V1 Aid Panel 0.0 21.0 0.0 0.0 Warner Ave. 100 FT E/0 Elms St. US - Runtington 3224 Leaso N: ORC-HT81 Permit #: WA&VER P= 3224 Z kB MN isis 857 Cl Small -V- Add Panel 0.0 32.0 0.0 0.0 Yorktown Ave. 100 FT 11/0 Huntington St. NS - 3226 Lease #: ORC-ETZI Permit It: 3226 I Na PN E le 857 JS Unknown 0.0 15.0 0.0 0.0 ------------------------------------------------------------------------------------------------------------------- Brookhuret St. 100 rT S/0 Garfield Ave. WS - 3228 Lease #: CRC-HTSl Permit #: 53-302770 3226 I R;B MN N 24 858 E4 Small -V- Add Canal 0.0 45.0 0.0 0.0 Bola& Ave. 100 FT W/O Goldeaweat St. 88 - 3511 - Lease #: ORC-NTB1 Permit #r hMM SAVIN 3521 1 FM " W 24 827 A3 Straight Add Panel 0.0 2S.0 0.0 0.0 Goldenwest at. 100 FT N/O Oxford Dr. Ws - 3601 Lease 0: ORC-HTBl Permit #: . 3601 Z n Mc N 12 827 H4 Va}¢own 0.0 46.0 O.0 0.0 Edinger Ave. 100 PT 3/0 Springdale St. WS - 3603 Lease #: ORC-ItT81 Permit V 3603 I FIB MM E 12 827 F6 Smell IV- Add Panel 0.0 36.0 0.0 0.0 ---------------------------------------- 8dinger Ave. ------------------------------------ 10O FT W/O Edwards St. 88 - 3505 ----------------------------------------------- Lease #: ORC-Ml Permit #: 360S Z BS 00d W 12 827 G6 Small 'V' Add Panel 0.0 36.0 0.0 0.0 Edinget Ave. 100 rT W/O Springdale St. 5S - 3401 Lease d: ORC-XT31 Permit #-. 3607 I RD MM 6 12 627 F6 Small IV' Add Panel 0.0 35.0 0.0 0.0 Springdale St. 100 FT S/0 hachine Dr. WS - 3603 Le30e #: ORC-RTDI Permit 8: 3609 Z us MM V 12 827 F4 Small •V■ Add panel 0.0 30.0 0.0 0.0 Edinger Ave. 100 rr W/O Edwards St. ES - 36LI Leaaa #: ORC-Axel Permit 9- 3611 I F8 KM P 12 927 CS Small -V- Add Panel 0.0 36.0 0.0 0.0 Yorktown Ave. 200 PZ S/0 Main St. 65 - Euntlhgtoc 3611 Lease #: 0RC-=R1 Permit #: 53-101476 3623 1 Im MM W 24 857 95 VrJmo'an 0.0 15.0 0.0 0.0 --------------•-----------------------------------------------------`------------------------------------------------------ Garfield Ave. 100 PT E/O Busherd St. 83 - 3613 Lease #: ORC-Emal Permit 9: 3615 Z HB MW W 12 858 Dt Small ^v- Add Panel v/S 0.0 14.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Reach alvd. 100 FT S/0 Clay Ave. aS - Runtington 3617 lease :: ORC-8T31 Permit #: AMER BLDO 3617 I K3 14W S 12 858 AS Small IV- Add P"vl 0.0 $0.0 0.0 0.0 Eller Media - Orange County Charting Pro 6.at6 01/13/99 10:56 ELLER MEDIA CO 714 374 1573 NO.674 D10 09:44 January 3.3. 1999 L0CA=ox3 DATABASE - y Transit Shelters C I R C V L A T I O Dt Local Pae4 Area Route Facing Ill. Aide A Unit Type honsal.'Inset.' rrom To Ped Aut01 Auto2 Auto3 Beach Blvd. 200 PT 9/0 Clay Ave- W9 - Huntington .3619 Lease 0: OBC-Mal Permit Or V-HAUL 3619 I 85 M A 24 as$ AS Small 'V- A44 Panel _0.0 44.0 0.0 0.0 y Beach Blvd. 100 FT 8/0 Constantinc Dr. wS - 3621 Lease 1: 0RC-HT81'Permit #: uissAw DSA 3622 I HB M N 20 858 A4 Scal2 --------------------------------------------------------------------------------------------------------------------------- IV'. Add Panel 0.0 44.0 0.0 0.0 Beach Blvd. 3.00 FT 6/0 Constantine Dr. 83 - 3633 Lease 0: CRC-H121 Permit $: 53-101411 3623 1 EZ Mw S 24 858 A4.910111 •V' Add Panel 0.0 44.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Beach Blvd. 100 PT N/0 ;iollaad Dr, Es - Huntington 3635 Leave i%: 0RC-F=1 permit 0: 53-101012 3625 1 F3 Pan S 24 858 Al Smell •V' Add Panel 0-0 61.0 0.0 0.0 Beach Blvd. 100 iT N/0 Terrry Dr. ES - Huntington 3637 Lease #: 0RC-HT91 Permit At 3627 1 BB M 8 12 529 A7 Small IV' Add Panel 0.0 60.0 0.0 0.0 Beach Blvd, l00 FT S/0 Ronald Xd. IPS - 1Rntip9ton 3629 Lease #: ORC-MI Permit 0: 3629 1 HS MR �N 24 858 A2 Small 'V' Add Panel 0.0 $9.0 0.0 0.0 ................ ---------------------------------------------------- Main St. 100 FT 6/O MiAtington St. SS - Huntington •------------------------------•------------------.... 3631 Laasv t: ORC-RTB1 Permit 0: CASCACS FR 3631 I H5 MM ►1 24 657 J4 VnkAOwn 0-0 16.0 0.0 0.0 Magnolia Sr.. 100 FT S/O Hyde Park Dr- ES - 3633 Least 0: ORC-RTB1 Permit R: T.CMIMAWA 3633 I H3 MW S 24 858 C5 Lnknown ----------------------------------------------------------------------------`-------------------------- 0.0 35.0 0.9 0.0 ------•------------- OarEield Ave- 100 IT Z/0 Mt. Melton Cir. SS - 3635 Lease A: ORC-RTSI Permit !!: BR001= M 3635 I• Ha MW w 12 058 84 Small 'V• Add Panel 0.0 14.0 0-0 0.0 leach Blvd. 100 PT'8/0 Taylor Dr. 88 - Huntington 3637 Leaps 0: ORC-RTB,1 Permit $: 3637 1 10 MW S 18 858 A3 Small 'V* Add Panel 0.0 $0.0 0-0 0.0 Oa=fle2d Ave. 100 PT 2/0 Magnolia St. SS - 3639 Leave 0: ORC-;=Bl Permit #: SAL ZITO 3639 1 113 MW W 24 858 C4 Suli 'V' ALd panel 0.0 19.0 0.0 0.0 8rookhi=st St. 100 PT S/0 Raan:sla Dr. SS - 3641 Lease 0: ORC-HTB1 Permit Is; 53-09S143 3641 I R3 MW S 24 858 Ss small 'V' Add Panel 0.0 45.0 0.0 0.0 ----------••---------------------------------.---.------------------------------------------------------------------------- Golderrwest St. 1CO PT N/O Hell Ave. E8 - 3643 Lease 0: ORC-=I Permit 8: 33-056584 3643 1 xz M4 6 12 627 96 Small -V' Add Panel 0.0 42.0 0-C 0.0 Brookhurvt 8t. 100 FT 8/0 Continental Dr. ES - 3645 Bet.: 1995/07/30 Lease #: ORC-13TH1 PermA t 0: 3645 I H3 MW S 12 158 Be Small 'V' Add Panel 0.0 43.0 0.0 0.0 Warner Ave. 1GO PT 2/0 Pinehuret Ln. SS - 3643 Lease #: ORC-MTH1 Permit #: 36i8 I ;M 104 w 12 857 71 Small 'V' Add Panel 0.0 20.0 0.0 0.0 Adams Ave. 300 FT W/0 Picad113y Dr. NS - 3650 Leaev 0: 0RC•RT81 Permit 0: 3650 I HB MW S 12 858 ES Small 'V* Add Panel 0.0 42.0 0.0 0.0 ---------------------------------------------------..--------------------------------------------------------------------.- Coldenrest St- 100 FT 9/0 Lydia Dr. 8S - 3632 Leave 8: ORC-HTBS Pvrmit 4. 53-098492 36S2 I H8 MM S 24 827 H7 UZ)=wn 0.0 41.9 0.0 0.0 891ea Chica St 100 FT'1/0 Bolva Ave. ES - 36$4 Lease #: ORC-HTBI Permit A: 3654 I HB M'7 S 12 827 D4 Small IV, Add Pagel 0.0 37.0 0.0 0.0 81ler P:edla - Orange County Cbarting Pro 6.er6 01i13/99 10:57 09:44 January 13, 1999 ELLER MEDIA CO - 714 374 1573 LOC7I ays D.MUASY 1. NO.674 D11 10 Transit Shelters - (Cant.) C Z RCULATZON _ Loc.I Face Arca Route Facing 111. 3tlde # Unit Type Nonsal. Inact. From To Ped Autol Auto2 Auto3 !Bain St. 100 FT S/O TorRtown Ave. We; - Huntington 3656 Lease #: ORC-HTB3 Permit g: 51-088903 3656 z im KK 17 24 857 RS Unknown 0-0 '15.0 0.0 0.0 . Beach Blvd. Zoo 1T 9/0 Liberty Ave. WE - 3656 Lease 8: ORC-HTB1 Permit #: LIB237n Mx 3658. I PM P94 11 24 858 A2 Small IV' Add Panel 0.0 59.0 0.0 0.0 GOthard St. 200 PT N/o Edinger Ave. SS - 3640 Lease 17 ORC-$T81 Permit j: 3660 I RD M 8 12 877 AS Unknown 0.0 17.0 0.0 0.0 Edinger Ave. 100 PT W/O Gethard St. ba - 3652 Lease }: ORC-UM Permit 8: 53-I01475 3662 I 1a Nat 8 24 827 R5 Small •V• Add Panel 0.0 33.0 0.0 9.0 - Brookhurst St, 100 FT 810 Kamuela Dr. Die - 3664 Lease 8: ORC-HTSI Permit 9; RANCR0 mRp 3664 --------------------------------------------------------------------------------------------------------------------------- j K5 11W N 24 856 25 Small -V- Add Panel 0.0 4S.0 0.0 0.0 Warner Ave. 100 1T 3/0 Sculpin Dr. SS - Auhtington 3666 Lease #: CRC-AT•B1 Permit 9: 3-120551 3S66 I B8 My �i4 24 857 01 ftknovn 0.0 36.0 0.0 0.0 Breo)thurot St. 200 FT 6/0 rodever Dr. We - 3664 Lease 8: ORC-IMI Permit Fr: A. J7t8RICH 3666 I XE K4 N 24 886 El Small -V• Add Panel 0.0 27.0 0.0 0.0 Yozktown Ave. 100 tT 3/0 RUntingtoa St. SS - 3671 Lease #; ORC-AT81 Permit #: 2671 I BE K14 W 12 857 JS unLnoxn 0.0 15.0 0.0 0.0 Magnolia St. 100 FT S/O Moditerzaneam Dr. E8 - 3673 Lease #: ORC-h-r5l Permit #: 53-101364 3673 I H5 MW 8 24 858 C7 •Un)Qiovn 0.0 39.0 0.0 0.0 ---------------------.----------------------------------------------------------------`------------------------------------ Adnm9 Ave. 100 FT'm/0 Derbyshire La. RS - 3675 Re-t-: 1998/08/12 Lease 8: ORC-RT81 Permit A: 3675 1 13 W4 E 12 858 D6 Small eV4 Arid Panel 0.0 35.0 0.0 0.0 Magnolia St. 100 FT 1110 Hamilton Ave. NS - 3691 Laase 1; ORC-HT81 Permit 8: 3651 I hS PT.7 S 12 s e a C2 Unknown 0.0 14.0 0.0 0.0 --•--------------------------------`-------------------------------------'--------.....------------------------.......----- erookhurot St. 100 FT W/O Cliff Dr. ES - 3762 Lease S: 08C-3ZBl Permit #; D- JJIDF:Rso 3762 I K3 MW 8 24 888 E1 Small •V- Add Panel 0.0 21.0 9.9 0.0 NCPaddcn Ave. 100 PT RIO Graham St. SS - 3764 Lease 8: 08C-F'T81 Pe: nit #: 3764 I HB and W 12 027 35 Small IV" Add Panel 0.0 9.0 0.0 0-0 ----------- ----------------------------------------------- Adams Ave. lo0 F; WO Seabridge Ln. 98 -....... - ---------_-.....----------..----------------------------- 3768 Lease k; ORC-RTH1 Per7ut #: 3768 I Be MW W 12 858 A6 Small -V- Add Panel 0.0 35.0 0.0 0.0 17th St. 100 FT A/O Pecan St. NS - Huntington Bch 3770 Lease #: 08C-SZBl Permit 8: 3770 r 10 MM 9 13 657 H7 Small *VI Add Panel 0.0 3.0 0.0 0.0 ►tagnalia St. 100 PT N/O Adams Ave. E8 - 8untingtom 3773 Lmaaw 8; ORC-R'TSl Fezmit 8: 3772 I 118 MW 6 12 858 C6 VnknO+n 0.0 37.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Hamilton Ave. 100 FT 8/0 Bushard at, SS - 3774 Leass 8: ORC-RT91 F9z'Mit $: 3714 I RB MW W 12 888 D2 unknown 0.0 26.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Hain St. 100 PT OPP Piorida St. WE - RuntiAgton 3776 Lease #: ORC-h791 Permit #: 3776 1 HB M L 18 858 A4 Unknow= 0.0 16.0 0.0 0.0 Eller Media - Orange County C"hartirsg Pro 6.8r6 01/13/991 10:57 ELLER MEDIA CO -' 714 3?4 1573 NO.6?4 91, 09:44 January 13, 1999 LOCASi0A9 DAZAVASz 11 Transit Shelte=e 7(font.) C I A C V L A T I O 8 Loc.# Paco Area Route facing Ill. Ride C Unit Type Noneal. Inact•..rrom To .-Pad Auto1 Auto2 Aut03 Talbert Ave. 200 PT 9/0 Beach Blvd. SS - 377E Leave.i:. .ORC-Nni Permit $: 3776 1 88 )m W. 12 85a A2 Uhlmovn 0.0 14.0 0.0 0.0 learner Ave. 100 RT 8/O Rosa Ln. N8 - Huntington 3780 Lease ;: 0RC-W=1 Permit t: 3780 I as ttW E 12 329 B7 Small -V* Add ---------------------------------------------------------------------------------------------------------------------------- Panel 0.0 21.0 0.0 0.0 Garfield Ave. ZOO rT E/O Beach Blvd. 68 - 3795 Lease #- ORC-HT81 Permit 3795 I EB MW W 12 858 A4 small -V- Add Panel 0.0 25.9 0.0 0.0' Main St. 100 FT N/0 Utica Ave. 8S - Evatingtoa Bch 3797 Lease 8: CRC-RT81 Permit #: 3797 I Ism 1.3'! S 12 857 86 Obknomn 0.0 15.0 0.0 0.0 . Garfield Ave. 100 rT W/O Newland St. SS - 3799 Lease #: ORC-lrl81 Permit #: 3799 I 10 MW K 12 858 24 Small -V' Add Panel 0.0 25.0 0.0 9.0 Beach Blvd. 100 PT 6/0 Utica Ave. MS - Huntington 3021 Lease 4: ORC-ETSI Permit #: 3421 I RB M! N 12 e50 A6 Small 'V• Add Panel 0.0 40.0 0.0 0.0 Edinger Ave. 100 FT WIO Gothard St. 86 - 3831 Ret.: 1997/03/24 Leaae.8: ORC-aT81 Permit ti: 3831 I RB K4 W 12 827 B5 Small •V' Add Panel 0.0 39.0 0.0 0.0 Gold"West St. 190 PT 8/0 Varner Ave. mS - 3833 Lease 9- OIC-EiBI PerasS.t B: CYDSVY DEAL 3833 1 Ho rA N 24 657 H1 Vn) a-:0vn 0.0 36.0 0.0 0.0 Edinger Ave. 100 PT E/O Marjan Ln. S8 - Huntington 3635 Lease #: oRC-KrBi Permit : 3835 I IQ TQ3 W 12 827 G6 Small 'V- Add Panel 0.0 46.0 0.0 0.0 Slinger Ave. 100 FT W/O Goldenmest St. NS - 3937 Leaae k: ORC-8TB1 Permit 6: 38J7 I H3 MM E 12 627 R5 Small 'V' Add Panel 0.0 37.0 0.0 0.0 solea Ave. 100 rr E/O Bolsa Chica St. 55 - 3$39 Lease R- ORC-RT81 Permit #: SW DO -ALL 3839 ; B3 MH w 24 827 DA Small -V- Add Panel 0.0 11.0 0.0 0.0 Kagnolia St. 100 FT N/0 Village Dr. ES - 3839 Lease #: OAC-HTB1 Permit S: 3989 I 113 Ma S 12 858 C7 Vnknovs 0.0 38.0 0.0 0.0 -------------•--•---------------------------------------------------------------------------------------------------------- Warner Ave. 100 rT W/O Springdale St. NS - 3891 Lease #: ORC-RT81 Permit 8: 3311 I RD M $ 12 857 P1 Bull 'V, Add ------------------ Panel 0.0 30.0• 0.0 0.0 ------------------------------------------------------------------------------------- Y.cradden Ave. 100 PT E/O Goldenxest St. SS - 3951 Lease g: I------------------- ORC-ETB1 Permit 8: 3951 I 10 MM W 12 827 H4 Un)=vvn 0.9 15.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Mcradden Ave. 100 PT W/O Electronic Ln. US - 3953 lease #: ORC-8T81 Per¢:it #: 3953 I BH M r 12 827 S5 S=n -V' Add Panel 0.0 9.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Bolea Avis. 190 rT W/O Craham St. HS - Huntington 395S Lease 8: OAC-WrBI Parait #: J. SLAZINA 3955 I HH X4 E 12 827 8:4 small 'V' Add Panel 0.0 11.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Coldenvest St. 1o0 rT A/0 Betty Dr. ES - 3969 Lease d): 0RC-UT91 Permit #: 3969 I IM "M S 12 057 H1 Unknpwn 0.0 36.0 0.0 0.0 Bdiager Ave. 100 rT OPP Plyr=uth Ln. SS - 3971 Lease 9: ORC-ETB1 Pernit 8: 3971 I IM Mtl W 42 827 PG Shall -V' Add --------------------------------------------------------------------------------------------------------------------------- Panel 0.0 35.0 0.0 0.0 Eller Media - Orange County Ctartiug pro 6.8r6 01/13/99 10:59 ELLER MEDIA CO -► 714 374 1573 NO.674 D1__ 09:44 Janu4ty 13. 1999 LOCLTZOW9 DATAZA8s 12 Transit Shelters .. _ 'rrom C I R C O L A T Z O N LOC.# Pace Area Route Pacing Ill. Ride # vait Type W.oneal..IRaet. To Ped Autol Auto2 Auto3 'Delaware St. 100 FT 9/0 17th St. Wr - Huntington 3973 Lease #: ORC-ifT81 Permit #: 3973 I Ba . M N 12 857 05 Small RVI Add Panel 0.0 3.0 0.0 0.0 Bolea Chica St 100 rr wo Sisson Ds. IS - 39.75 Lease S: ORC-HTB1 Permit #: P. TRORHTo 3175 I F3 M11 3 11 a27 D6 Straight Add Panel 0.9 29.0 0.0 Q.Q. 37th St. 100 PT W/O Palm Ave. N8.- 3untington Bch 3977 Leave #r ORC-RT191 Permit $: 3977 I Fib KH E 12 857 X7 Small IV' Add Panel 0.0 3.0 0.0 0.0 Warner Ave. 100 FT E/O Oak St. NS - Huntington Bch 3979 Leavv #; ORC-STsl Permit 0: 3979 I RB 7:OS 8 12 827 ,T7 Small IV' Add Panel 0.0 31.0 0.9 0.0 Sprirvadals St. 100 PT 6/0 Engineer Dr. ffig - 3981 Lease 8: OAC-S731 Per -,,.it p: 3981 I H3 MM N 12 827 r4 Small -V-. Add Panel 0.0 27.0 0 0 0.6 --------------------------------------------------------------------------------------------------------------------------- W ger Ave. 100 FT W/O Springdale, St. N6 - 3983 Lease #: ORC-ET31 Permit #: 3983 I HB MM E 12 827 F6 Small IV" Add Panel 0.0 35.0 0.0 0.0 Solsa Ave. 100 FT S/0 Drake Ln. 88 - Huntington 4035 Lease #: ORC-RTB1 Psrnit #: 4035 1 12 !Re, W 12 827 P4 Shall IV- Add Panel 0.0 24.0 0.0 0.0 Beach Blvd. 100 PT 3/0 Cypress Ave. H9 - 4057 Lease #: ORC-XTBI Pertiit #: AAA RESOM3 4057 I AB 14M F 24 .858 Al Small -V* Add Panel 0.0 61.0 0.0 0.0 Magnolia 5t. 100 PT C/o Hyde Park Dr. WS - 4254 Lease #: ORC-hnl Permit #: 4254 I RB b(W it 12 .858 CS M-Omown 0.0 35.0 0.0 0.0 Magnolia St. 100 FZ N/O Clipper Dr. W8 - 4256 Lease 4: CAC-nal Permit q: 4256 I RS - KX a 12 858 C6 UU)MOwa 0.0 37.0 0.0 010 Magnolia St. 100 PT N/O Oceanmood Dr. 18 - 4258 Rat.: 1997/C3/10 Lease 8: ORC-=1 Permit #: 4256 I FIB MW 8 12 eel Cl Urk^.ovn 9.0 32.0 0.0 0.0 Center Avg. 100 FT E/0 R=tington Village DT8 - 4260 Lease #: ORC-ET81 Permit #: 4260 1 KB MM B 18 827 .75 Small 'v- Add Panel 0.0 15.0 0.9 0.0 Center Ave. 100 PT W/O Himitington V1114ge NS - 4362 Lease 9: ORC-RIBI Permit #: 4262 I HB MM B 12 827 JS Small -V" Add Pan01 0.0 16.0 0.0 0,0 Magnolia St. 100 FT 910 tllaworth Dr. WS - 4396 Lease #: ORC-WITH% Permit #: 4296 I as MW y 12 489 C1 Unknown 0.0 32.0 0.0 0.0 fdegnOlia St. 100 PT X/O Carrolltown Dr. WS - 4296 Lease #: ORC-UT81 Permit #: 098 I NB !Td by 12 938 C1 Unknown 0.0 32.0 0.0 0.0 --------------------------------------------------------------------------------------------------------------------------- Malmo Ave. 100 PT W/O Coldwater Ln. US - ' 4304 Lease #: ORC-Ml Permit #: in PROC 430% I HE M117 r 13 858 A6 Small -v- Add Panel - 0.0 35.0 0.0 0.0 Srookhurst St_ 100 PT 6/o Constitution Dr. WS - 4306 Lease #: ORC-K:91 Permit :i: 4306 1 HB xW N 12 8S8 E6 small •V- Add Panel 0.0 43.0 0.0 0.0 Adams Ave. 100 PT W/O Beach Blvd. NS - Suntingtob 4309 Leave #: ORC-9 21 Hermit 2: 4306 I MR M4 2 12 a5a A6 Small IV' Add Panel 0.0 8.0 0.0 0.0 Eller Media - Orange County Chatting Pro 6.8r6 01/13/99 10:58 ELLER MEDIA CO -+ 714 374 1573 NO.674 P14 09:44 January 13. 1999 7.00ATIOFS yATAA.Uz 13 Tranalt Shelters (cont.)• C I R C V L A T 1 0 1T. Loc-9 Pace Area Route Facing .112- Rifle f Unit Type Nonyal. Inact. Prom To Pad Autol AOt02 Auto? Brookhurst St. 100 FT S/O PecX Dr. NS - Buntington 4310 Leave 4: ORC-BT81 Permit a: 433,0 I Ism Mw N 12 859 E7 6mall IV' Add Panel 10.0 36.0 0.0 0.0 Brookhurat St. 200 FT N/O Indiana polio Ave, ES - 4313 _ Leave #: ORC-23 l permit #: . 4312 I HS MW 5 - 12 859 27 Small IV, Add ranel --------------------------------------------------------------------------------------------------------------------------- 0-0 36.0 0.0 0.0 Broal.hurst St. 100 rT S/O Continental Dr. VS - 4330 Lease #: ORC-8TH1 Permit 3: 4330 I Ka Mw N 14 858 R6 small •v, Add Panel . -------------------------- 0.0 43.0 0.0 0.0 ------------------------------------------------------------------------------------------- Garfield Ave. 100 FT E/O Dela.arc St. NS - 4370 Leave g: O11C-RTB1 Permit $: 4370 1 H9 ffli E 24 857 J4 Largs "V' Add Panel 0.0 13.0 0.0 0.0 TorXtovn Ave. 100 FT W/O Ranch T.P. us - Huntington 4372 Ltaac 0: ORC-R721 Permit 4: 4372 1 258 MM S 12 857 J6 Small 'V' Add Panel ----------------------------------------I 0.0 15.0 0.0 0.0 ---'--------------------------------------------------------------------------- Garfield Ave. 100 FT w/0 6 merfield Ln. 8S - 4374 Lease 0: ORC-RIB1 Permit 8: 4374 I EB Me W 19 858 B4 Small 'V' A34 Panel 0.0 25.0 0-0 0.0 Ootnard St. 100 FT S/0 PcFadden Ave. WS 4376 Lease B: ORC-ErrBl Permit #; OW'BST COLL 4376 I R8 Mn N 24 827 J4 Wmoxn 0.0 17.0 0.0 0.0 Edinger Ave. 100 rT W/O Sherbreck Ln. US - 4378 Lease #; ORC-STB1 PtSait 8: 4370 1 F93 MM B 12 827 CS Small IV, Add Panel 0.0 36.0 0.0 0.0 Edinger Ave. 100 FT W/O Standish Ln. NS - 4380 Lease ORC-ATdl PcPmit A: 4380 I Hs W E 12 827 16 Small IV' Add Panel 0.0 36.0 0.0 0.0 Magnolia 8t. 100 FT N/0 Atlanta Ave. 83 - 4382 Leas #: ORC-RTBS Permit 4: 4382 1 M 2Sd 5 12 989 Cl U'nknown 0.0 32.0 0.0 0.0 Algonguim St. 100 FT S/C Heil Ave. V9 - Ruantingtan 4384 Least 8: ORC-RTB1 Permit 8: HAREOR PIN 4384 3 R6 KM S 24 $27 C7 Small •V' Add Panel 0.0 13.0 0.0 0.0 Rail Avc. 200 PT 210 Le Grande In. 88 - Runtington 4386 Lease S: ORC-RT81 Permit 1: 4386 1 FM M W 12 627 C7 Unknown 0.0 15.0 0.0 0.0 Heil Ave, 100 FT WIO Crcen St. SS - 2luntingtca Bch 4384 Lease #: ORC-HT31 Parfait a: 4395 7 20 Ki 11 12 827 C7 17nk,7owti 0.0 15.0 0.0 0.0 McPadden Ave. 100 FT E/O Computer La. SS - 4390 Lease 9: ORC-HTB1 Permit $: 6390 I R3 MK N 12 827 ES Small IV' Add Panel 0.0 9.0 0.0 0.0 -------------------•--------•----------------------•-----------------------•----------------------------------------------- McFadden Ave. 100 FT OPP Computer Ln. NS 4372 Lease 8: ORC-HT81 Permit 4: 4392 I RQ MH E 12 977 E5 small -V' Add Panel 0.0 9.0 0.0 0.0 Adams Ave. 100 FT 3/0 Cromer Reef Ln. SS - 4613 Lease p: ORC-HT81 Permit f: $683 1 RB Mw w 12 658 B6 Small IV, Add Panel 0.0 35.0 0.0 0.0 r,dinger Ave. 100 PT E/O Warren 8t. e8 - Huntington 4695 Lease 8= CAC-RTBl Permit 4: 4695 I 103 KM. W 12 827 D6 Small *V' Add Panel 0.0 25.9 . 0.0 0.0 Warner Ave. 100 PT 9/0 Ooldenwest St. 53 - 7191 Ret.. 1995/00/26 Lease 0: ORC-HT31 Permit 0! 7451 I 309 KM w 12 827 k7 6ma11 IV' Add Panel -----------------------------------`----------------------------..__._...._........................------------------------ 0.0 36.0 0.0 0.0 Eller Media - Orangc County Charting pro 6.8r6 AGREEMENT FOR THE INSTALLATION AND MAINTENANCE OF BENCHES FOR THE -CITY OF HUNTINGTON BEACH THIS AGREEMENT is made and entered into this Qjtta' J St- . day of = 4tt}y 1978, by and between the City of Huntington Beach, a municipal corporation of the State of California, here- inafter referred to as "CITY", and :COAST UNITED ADVERTISING, a California corporation, D/B/A Bench Ad Company, hereinafter referred to as "BENCH AD". WHEREAS, CITY desires that the general public be provided with the convenience of benches at bus stop locations throughout the CITY; and WHEREAS, BENCH AD is in the business of furnishing benches to municipalities and placing and maintaining benches containing advertising thereon, as well as benches without advertising; and ; WHEREAS, CITY desires to grant permission to BENCH AD upon the terms and conditions set forth herein to place and maintain benches in the public rights -of -way of CITY, NOW, THEREFORE, IT IS HEREBY AGREED as follows: 1. CITY does hereby grant to BENCH AD a franchise and right to place benches in the public rights -of -way in the City of Huntington Beach -in accordance with the terms and con- ditions specified herein and at only those locations and those quantities of bus benches designated in Exhibit "A", which is ~) attached hereto and incorporated herein by r.eferenee., BENCH.AD agrees that said benches shall be placed- .as, near as_ , is practi:cal . to established bus stop signs. 2. CITY shall designate the Director. of Planning and Environmental Resources, hereinafter referred to as "DIRECTOR" to administer the terms of this agreement. 3. BENCH AD shall install bus benches at all locations designated within sixty (60) days of the execution.of this. Agreement. No*more than one (1) bench.shall be installed at any bus stop except by prior written approval from the DIRECTOR. 4. All.benches shall remain the property of BENCH AD. 5. The benches shall be constructed of heavy cast concrete approximately three hundred (300) pounds in weight. Each bench shall include the name and current telephone number of BENCH AD. 6. BENCH AD shall carry public liability and property damage insurance in the form approved by the City Attorney and shall provide a certificate of said insurance to the City Clerk. Said insurance shall name CITY as an additional ifisured,.in the following amounts. Combined single limit, person injury - including liability:insurance -- $300,000.00 each occurrance. Property damage liability -- $50,000.00 each occurrence. 7. BENCH AD shall indemnify, hold harmless and defend the CITY, its officers,• employees and agents against any claim or cause of action for damage to property or for injury or death -2- '. A of. any person, occasioned by BENCH AD's, its employees'; or agents' acts or omissions'in the installation, placement, oper- ation or maintenance of said benches. 8. BENCH AD shall., at its sole expense and cost, maintain said benches in a good condition; shall regularly in- spect said benches at least once each three months of the term of` this Agreement; and shall make the necessary repairs .to said benches immediately upon ascertaining that the repair is needed or upon being notified of said facts by CITY. CITY reserves the right to perform maintenance and bill BENCH AD in the event reported maintenance is not performed within fifteen (15) days of notification to BENCH AD. 9. BENCH AD agrees to pay to the CITY an annual permit fee of five (5) dollars per year per bench or portion thereof located within the CITY limits of the CITY. The payment shall be first due and payable upon execution of this Agreement and on each anniversary thereafter for the life of this Agreement. BENCH AD shall also procure an annual business license, as provided in Title 5 of the Huntington Beach Municipal Code. 10. BENCH AD shall submit to the DIRECTOR, quarterly, a list of bench locations, date of placement and current status. 11. CITY and BENCH AD both agree that the DIRECTOR may modify Exhibit "A'l and require relocation or removal of benches, or the placement of additional benches. BENCH AD agrees to place, remove or relocate benches in locations designated by the DIRECTOR within thirty (30) days of receipt of written notice to do 'so. mm 12. BENCH AD shall place advertising copy only on those benches at•locations•designated "Advertising" in Exhibit "All Benches at locations designated "Non -Advertising" shall either be blank.or carry public service messages as abproved by the DIRECTOR. BENCH AD shall not place advertising on any bench for alcoholic beverages or tobacco products, or. any advertising which is ob- jectionable in the judgment of the DIRECTOR. BENCH AD shall not place advertising upon any bench which•shall- be competitive to any business located adjacent to the location of said bench. BENCH AD shall not place any political adver- tising on benches. No advertising copy shall display the words "STOP", "LOOK", "DRIVE-IN", "DANGER", or any other word, phrase, symbol, or character calculated to interfere with or mislead traffic. BENCH AD shall submit advertising copy to the DIRECTOR for its review and approval. The advertising copy received by the DIRECTOR shall be deemed approved unless the DIRECTOR noti- fies B NCH AD in writing within ten (10) days after receipt of its obj ction or disapproval. 1 . This Agreement shall not be assigned or transferred by BENCH AD without the written approval of CITY. 14. Unless sooner terminated, this Agreement shall continue ,ire force for a period :of one (1) year from and after the date of execution. After the expiration of the one year term.' this Agreement shall automatically renew from year to year, unless either party shall provide the other with a written notice sixty (60) days. prior to the termination date of its intention not to -4- automatically renew this Agreement. 15. In the event of any breach on the part of BENCH - AD, the CITY shall notify BENCH. AD of its intention to terminate. this•'Agreement. If.after thirty days of `the date of notification, - the terms of this Agreement have not been satisfactorily complied with, CITY may terminate said agreement. 16. Upon termination"of this Agreement, in accordance with Paragraphs 13 or 14 above, all benches installed within the CITY shall be removed within sixty (60).days after written notice to do so has been delivered to BENCH AD by the DIRECTOR, and CITY shall be under no further obligation hereunder. 17. Both CITY and BENCH AD both agree that this Agree- ment shall be of no force and effect unless and until the pro- posed ordinance of the City of Huntington Beach regarding bus benches' and transit shelters is adopted by the City Council and becomes effective according to law. -5- ATTEST: Alicia 'M. Wentworth City Clerk By Deputy REVIEWED AND"APPROVED: Cith Administrator CITY OF HUNTINGTON BEACH A Municipal Corporation. Mayof' APPROVED AS TO FORM: C ty Att.orney MT COAST UNITED ADVERTISING D/B/A BENCH AD COMPANY 4943 East Slauson Avenue Maywood, California 90270 09/16/98 12:04 FAX 8187030638 BENCH AD U 002 C I T Y B E N C H R E P O R T BENCH AD CITY: HTB - HUNTINGTON BEACH T B409116/98 PAGE_'1 BENCH ID STREET CROSS STREET CRNR CITY ZIP: PERMIT CUSTOMER COPY A C827B5000 EDINGER MONTEREY NS HTB - - 0827C6040 EDINGER FANTASIA LN NS HIS - SKICRA 54-A 0827C6041 EDINGER FANTASIA LN NS HIS - -: C827C6050 EDINGER MELODY LN NS HIS P 12372 - 0827C7000 ALGONQUIN PEARCE NBFS HIS - 0827C7010 ALGONQUIN DAVENPORT ES HTB - FRANAUT 232* 0827C7013 ALGONQUIN HEIL SE HTB 12375 - 86 0827C7015 DAVENPORT ALGONQUIN SW HTB 65586 ?DEBRA 259-C O827C7020 HEIL LE GRANDE SE HIS 65598 SKICRA 54-A 0827C7030 WARNER GREEN SE HIS 65509 86. 0827C7033 WARNER HOSKINS NE HIS P CRTINS 308E1* 0827C7034 WARNER HOSKINS ' NE HTB - - 0827D3050 BOLSA GRAHAM SW HIS 12376 NATSUN2 574A1* 0827D6005 BOLSA CHICA EDINGER SE HIS - BARDELG 74-A 0827D6012 EDINGER BOLSA CHICA NW HTS - 0827D6015 BOLSA CHICA SISSON WE HIS 12820 NATSUN2- 574A1* 0827D6031 EDINGER GRAHAM NE HIS - LIBCHR 547 082706032 EDINGER GRAHAM SW HTB - DAIQUEHH 511-D 0827D7010 SOLSA CHICA HEIL NE HIS 65578 LIBCHR 547 C827D7032 WARNER BOLSA CHICA NW HIS 12998 BARDELG 74A* 0827D7033 WARNER SOLSA CHICA SE HIS P 09878 WOMURG 115-A 0827D7040 WARNER GRAHAM NW HIS P 09729 BARDELG 74-A C827E3015 BOLSA SPRINGDALE SE HIS 86 C827E3040 SPRINGDALE ENGINEER SW HIS 64481 NATSUN2 574A1 082TF4036 SOLSA DRAKE LN SE HIS 09702 - 0827F5000 SPRINGDALE MC FADDEN NE HIS - 0827F6010 EDINGER PLYMOUTH NW HIS 09704 - 0827F6015 EDINGER PLYMOUTH SS HIS 65594 - 0827F6020 EDINGER SPRINGDALE NW HIS 12242 BARDELG 74A* 0827F6025 EDINGER SPRINGDALE SW HIS 65595 DAIQUEHH 511-E 0827F7020 WARNER LARK NE HT8 09730 SKICRA 54-A 0827F7040 WARNER SPRINGDALE NW HIS 07408 PACCLU 401-A 0827F7045 WARNER SPRINGDALE SE HIS 65511 WOMURG 115-A 0827G3000 EDWARDS ROYAL OAKS NE -HTB - CDMOV 906 0827G3010 BOLSA EDWARDS SE HIS 61711 - 0827G6100 EDINGER EDWARDS SE HIS - - 0827G6105 EDINGER EDWARDS NV HIS - CDMOV 906* 0827G7016 WARNER EDWARDS SE HIS 07406 WOMURG 115-A C827G7035 WARNER SCULPIN. SS HIS - PACCLU 401-B 0827H4035 GOTHARD CENTER SW HTB 65597 MCDONAL 3-Y 0827H5000 EDINGER COLLAGE ENTR NW HIS - NRCNIK 845 D827H5012 EDINGER GOLDEN WEST SE HIS - CONLIC 133 0827H5013 EDINGER GOLDEN WEST NW HIS - PAGKISTN 354-A 0827H5015 EDINGER 7201 BLK SS HIS 65593 COHOV 906 082786020 EDINGER GOTHARD NW HIS 65591 - 0827H6027 EDINGER GOTHARD SE HIS 12712 MCDONAL 3-W 0827H6030 EDINGER MARJAN LN SE HTB 65593 - 09/16/98 12:05 FAX 8187030638 BENCH AD U 003 CITY BENCH REPORT BENCH AD CITY: HTB - HUNTINGTON BEACH .;. T B409/16/98 PAGE 2 BENCH JO STREET CROSS STREET CRNR CITY ZIP _:.=PERMIT. CUSTOMER COPY A 0827H6D46 GOLDEN WEST STONEWOOD NE HTB 08620 082786050 GOLDEN WEST EDINGER SW HTB - 07132 PACCLU 401-A 0827H6060 GOLDEN WEST LAURELHURST SW HTB 08621 0827H6080 GOLDEN WEST VALENTINE NE HTB 08624 MB 0827H6090 GOTHARD EDINGER NE '.HTB 09988 PAGKISTN 354-A 0827H7006 GOLDEN WEST HEIL NE HT8 08627 SKICRA 54-A 0827H7008 GOLDEN WEST HEIL SW HTB 08629 - 0827H7010 GOLDEN WEST LYDIA SW HTB 08630 - 0827H7015 GOLDEN WEST NORMA SE HTB .07133 - 86 O827H7020 GOLDEN WEST WARNER SW HT8 65596 DAICUEHH 511-C 0827H7025 WARNER GOLDEN WEST NW HTB - WILLYO 750E 0827H7044 WARNER GOTHARD SW NTB 10256 WOMURG 115-A C827H7050 WARNER 7100 ELK NS HTB - CHR14AR 131 0827J4040 CENTER HUNTING.VLLG SS HTB 11399 - 86* 0827J5006 CENTER HUNTING VLLG NS HTB 11399 HARIND - 510-H C827J5040 GOTHARD MC FADDEN i SW HTB 08089 0827J6040 EDINGER BEACH NW HTB 09317 BARDELG 74-A C827J6045 EDINGER ENT.HUNT.CTR NW HTB 08164 CONPLU 51 C827J6046 EDINGER PARKSIDE LN SW HTB - PAGKISTN 354-A 0827J6047 EDINGER 7552 ELK SE HTB 08296 WOMURG 115-A 0827J6060 EDINGER SHER NW HTB P 07886 ?DEBRA 9C6 0827J6070 EDINGER SHER SE --HTB 07887 PAGKISTN 354-A 0827J7045 WARNER BEACH SW HT8 65508 SKICRA 54-A 082BA6015 BEACH HEIL SW HTB - NATSUN2 574A1 082BA6016 BEACH HEIL NE HTB 12756 LIBCHR 547 0828A6020 BEACH TERRY NE HTB - COMOV 906 C82BA6025 BEACH TERRY SW HTB 08591 NATSUN2 574A1 0828A7030 BEACH WARNER NE HTB 08166 NATSUN2 574-B D828A7035 BEACH WARNER SW HTB 65577 FRANAUT 232 0828A7040 WARNER BEACH W/O NW HTB 09516 BARDELG 74-A 0828C4000 EDINGER SWEETLEAF NW HTB - - 86 0857A1036 PAC CST HWY WARNER NE HT8 - HARIND 510-H D857AIC40 WARNER PAC CST HWY LP HIE PVT MCAREC00 08541042 WARNER PAC CST HWY LP HTB PVT HARIND 510-H 0857A1043 WARNER PAC CST HWY LP HTB PVT CRUFOR 245A1 0857A1045 WARNER PAC CST HWY LP HTB PVT HARINO 510-H 0857A1046 WARNER PAC CST HWY LP HIS PVT HARIND 510-H 0857CIO25 WARNER ALGONQUIN NW HTB 07149 BARDELG 74-A .0857E1045 WARNER GRAHAM SE HTB - NATSUN2 574A1 0857G7000 PAC CST HWY GOLDEN WEST NE HTB - NATSUN2 574A1 0857GTOOS PAC CST HWY GOLDEN WEST SE HTB - BARDELG 74-A 0857G7020 PAC CST HWY 17TH SE HTB 06841 NATSUN3 574-B 0857G7025 PAC CST HWY 17TH NE HTB 09296 SKICRA 54-A 085TG7028 PAC CST HWY 17TH SW NTB - TERHAR 979 0857G7030 ORANGE 17TH NE HTB 07141 - - 0857H1000 GOLDEN WEST BETTY NE HTB 12749 LIBCHR 547 D857HIC08 GOLDEN WEST FORD NW HTB 08637 MARINO 510-G 09/16/98 12:05 FAX 8187030638 BENCH AD 004 C I T Y B E N C H R E P O R T BENCH AD CITY: HTB .- HUNTINGTON'BEACH T 8409/16/98 PAGE 3 BENCH 10 STREET CROSS STREET CRNR CITY ZIP PERMIT CUSTOMER COPY A.. 0857H1010 GOLDEN HEST. SLATER NE HTB .081.07 - 0857H1015 GOLDEN WEST. SLATER SW ,.HTB 07134 SKICRA 54-A 0857HI022 GOLDEN WEST TUCANA • SW . HTB - NATSUN2 574A1* 0857H1027 GOLDEN WEST TUCANA DR WE HTB - FRANAUT 232* 0857H2O10 GOLDEN WEST..RIO VISTA ES HTB 08638 STAREA10 912-A 0857H2O15 GOLDEN WEST RIO VISTA SW HTB 08639 SUKFEE 365 0857H2O20 GOLDEN WEST CENTRAL PARK NE HTB 08640 SIESUM 303Q1 0857H3010 GOLDEN WEST TAYLOR NW HTB 08641 NATSUN2 574A1* 0857H5010 GOLDEN WEST CLAY SW HTB 08060 NATSUN2 574A1 0857H5020 MAIN GARFIELD NE HTB 08157 STEMEH 471-C 0857H6010 GOLDEN WEST YORKTOWN WE HTB 06833 SUKFEE 365 0857H6015 MAIN YORKTOWN SW HTB 09132 GUSBRO 67-A 0857H6016 MAIN YORKTOWN SW HTB - STEMEH 471-E 0857H6020 MAIN ADAMS SW HTB 08501 TERHAR 979 0857H6040 MAIN UTICA NE HTB 08521 GUSBRO."- 67-A 0857H6041 MAIN SPRINGFIELDi NE HTB - 26RMVD 471-C* 085786050 MAIN 17TH-UTICA SW HTB NORMAN FRANAUT 232 0857H6060 17TH MAIN SW HTB 08520 SUKFEE 365 0857H6070 YORKTOWN GOLDEN WEST SE HTB 06842 SUKFEE 365 0857H6071 YORKTOWN GOLDEN WEST SE HTB - TERHAR 979 0857H6085 YORKTOWN MAIN SE HTB - STEMEH 471-E - 0857H6090 YORKT06'N MAIN NW HT3 08503 SKICRA 54-A 085786100 17TH ADAMS SW HTB 08527 CUS3RO 67-A 0857H7000 ORANGE 14TH ST SW HTB - M3 - C857H7030 MAIN PALM SW HTB - SUKFEE 365 0857H7035 MAIN 11TH NW HTB 09133 GUSBRo 67-A C857H7041 MAIN 12TH SE HT8 - GUSBRO 67-A 0857H7050 17TH AGUA ES HTB 08526 FRANAUT 232 0857H7055 17TH AGUA SW HTB 08525 HARIND 510-H C857H7060 17TH PALM NW HTB 07154 SUKFEE 365* 0857H7065 17TH PALM NE HTB 00314 HARIND 510-H C857H7066 17TH PECAN SW HTB - HARIND 510-H 0857J3050 MAIN DELAWARE NW HT8 08514 GUSBRO 67-A* 0857J3055 MAIN DELAWARE SE HT8 - FRANAUT 232 0857J4000 DELAWARE GARFIELD SE HTB - TERHAR 979 085TJ4070 MAIN HUNTINGTON NW HTB - - 0857J4075 MAIN HUNTINGTON NE HTB - MCAREC00 0857J5030 DELAWARE CLAY NE HT8 65588 - 085TJ5038 DELAWARE 17TH NW HTB 65572 - 0857J6052 DELWARE 2604 BLK ES HTB - - 0857J6070 YORKTOWN HUNTINGTON NW HTB 08507 SUKFEE 365* 085TJ6075 YORKTOWN HUNTINGTON SE HTB 08508 MCAREC00 - 0857J6080 YORKTOWN LAKE NW HTB 08519 GUSBRO 67-A 0857J6085 YORKTOWN LAKE SE HTB 08506 TERHAR 979 0858A1000 BEACH SLATER SE HTB 12714 NATSUN2 574-8 085BA1010 BEACH BLAYLOCK NE HTB 61904 NATSUN3 574A1 085BA1015 BEACH CTPRESS SW HTB 61905 - 86 09/16/98 12:06 FAX 8187030638 BENCH AD 121005 C I T Y B E N C H R E P O R T BENCH AD CITY: HTB - HUHTlNGTON BEACH T 8409/16/98 PAGE 4 BENCH ID STREET CROSS STREET CRNR.CITY ZIP, :PERMIT CUSTOMER COPY A 085SA1030 BEACH HOLLAND HE HIS, 08589 - 86 085BA1035 BEACH HOLLAND 300' N/WS HTB. M90 SKICRA 54-A 085BA104D BEACH SLATER -SW -- HTB 63728 NRCNIK 845: 0858A2010 BEACH LIBERTY SW . HTB 00353 MR 615 0858A2025 BEACH w NEWMAN BE HTB 65574 085BA2050 TALBERT BEACH BE HTB - FRANAUT 232 085BA2051 TALBERT BEACH BE HT8 - NATSUN2 574A1*. . 0858A2052 BEACH TALBERT SW HIS WOMURG 115-A 0858A2053 BEACH TALBERT NE HTB - CONLIC 133 085WO01 MAIN ELLIS SW HT3 - +SAHCOLT 141 08SWO10 BEACH GRAZIADIO NE HTB 08586 CONLIC 133 0858A3020 BEACH MAIN SW HTB 63829 FRANAUT 232 0858A3022 BEACH MAIN SW HTB P MCDONAL 3DO 0858A3030 BEACH TAYLOR BE HTB 65575 CONPLU 51 0858A3033 BEACH TAYLOR SW HT3 09025 NATSUN3- 574A1 085BA3055 BEACH BLVD ELLIS AVE I NE HTB 13042 GUS3RO 67-A 0858A3070 MAIN FLORIDA NS HTB 08138 LIBCHR 547 C858A5000 BEACH CLAY SW HTB P 10259 - 86 0858A5007 BEACH CONSTANTINE SW HTB 08585 SKICRA 54-A 0858A5010 BEACH GARFIELD NE HTB 63502 CONLIC 133 0858A5015 BEACH GARFIELD SW HTB 00345 MCDONAL 3-110"1 C858A5020.BEACH OVEN ES HTB 13115 SKICRA 54A* 085BA5040 GARFIELD BEACH NW HTB 08509 SUKFEE 365 0858A5042 BEACH YORKTOWN NE HTB 08581 LISCHR 547 0858A5045 GARFIELD BEACH BE HTB 08510 - 085BA5065 GARFIELD FLORIDA BE HTB 08512 - 0858A6010 ADAMS BEACH NW HTB- 06829 CONLIC 133 0858A6020 BEACH ADAMS NE HTB - GUSBRO 67-A C858A6025 BEACH ADAMS SW HT8 63501 ?DEBRA 441-A 085BA6026 BEACH ADAMS SW HTB 11147 - 39-A 085BA6030 BEACH UTICA NE HTB 08579 NATSUN2 574A1* 0858A6035 BEACH UTICA SW HTB 08580 MCDONAL 388 0858A6050 DELAWARE ADAMS BE HTB 65587 - 0858A7010 BEACH INDIANAPOLIS NE HTB 65573 SKICRA 54-A 0858A7015 BEACH INDIANAPOLIS NW HTB 63503 NATSUN3 574A1 085BA7017 BEACH MEMPHIS NE HTB 09556 - 86* 0858A7020 DELAWARE MEMPHIS ES HTB 07131 - 0858A7030 DELAWARE PORTLAND WS HIS P 08593 - - 0858B6010 ADAMS COLDWATER LN NW HTB 11317 - 86* C85886015 ADAMS COLDWATER LN BE HTB 11328 MB - 085886020 ADAMS NEW BRITAIN BE HT8 11327 - 085886030 ADAMS NEWLAND NW HTB 68870 - 86 085886035 ADAMS NEWLAND BE M78 11845 - - 085886040 ADAMS ROTHERT LN NW HTB 11329 - 86* 085BC5005 GARFIELD NEWLAND NW HTB - - 0858C5011 GARFIELD NEWLAND SW HTB - - 232* D85SC5020 GARFIELD MAGNOLIA NW HTB 10292 SKICRA 54-A 09/16/98 12:06 FAX 8187030638 C I T Y B E N C H R E P O R T BENCH AD 0006. BENCH AD CITY: HTB - HUNTINGTON BEACH T 9409/16/98 PAGE 5 BENCH ID STREET CROSS STREET CRNR CITY ZIP PERMIT CUSTOMER COPY A 085BC5025 GARFIELD MAGNOLIA SE HTB 10294 CONPLU 51 o858C504O MAGNOLIA HYDE PARK SW, HTB 10351 - - 085BC5045 MAGNOLIA HYDE PARK SE -. HTB 12M - - 0858C5055 MAGNOLIA MOORPARK SE HTB 13078 - 0858C6010 ADAMS BUSHARD SE HTB 65566 - 0858C6011 ADAMS LOTUS NE HTB - - 0858C6012 ADAMS SEABRIGE LN SE HTB - - 86 085BC6018 ADAMS MAGNOLIA NW HTB - GILGRA 553 OB58C6030 MAGNOLIA ADAMS NE HTB 09873 GUSBRO 67-A 085SC6035 MAGNOLIA ADAMS SW HTB 09874 SKICRA 54-A 0858C6037 MAGNOLIA MADELINE SE HTB P 12835 - 0858C6040 MAGNOLIA YCRKTOWN ' NE HTB 07138 - 86* 0858C6045 MAGNOLIA YORKTOW,q SW HTB 07139 NATSUN2 574A1 0858C7010 MAGNOLIA INDIANAPOLIS NE NTH 65633 GILGRA 553 0858C7015 MAGNOLIA INDIANAPOLIS SW HTB - GUSHRO _ 67-A 0858C7020 MAGNOLIA VILLAGE HE HTB 10180 - 86 085ED5010 GARFIELD BUSHARD NW HTB 10314 STAREAA 303C 085BD5015 GARFIELD BUSHARD SE HTB 10293 - 86 0858E4005 SROOKHURST GARFIELD SW HTB 08183 LISCHR 547 0858E4010 BROOKHURST KAMUELA SE NTH 08188 i 0858E4016 BROOKHURST KAMUELA SW HTB - NATSUN2 574B° 0858E4025 BROOKHURST KUKUI NE HTB 10183 - - 0858E4050 GARFIELD SROOKHURST NW HTB 08192 JEAMAR 303K1 0858E6010 ADAMS BROOKHURST NU HTB 65563 MCOONAL 3-S2 085BE6012 ADAMS BROOKHURST SW HTB - C858E6020 ADAMS DERBTSHIRE NW HTB 08165 - 86* C858E6025 ADAMS DERBYSHIRE SE HTB 08164 - 0858E6030 ADAMS SUTTON NW HTS 07128 - 86* 0858E6045 BROOKHURST ADAMS NE HTB 65579 SKICRA 54-A C85BE6048 BROOKHURST ADAMS 3001S SW HTB 65583 - - C856E6060 BROOKHURST CONSTITUTION NE HTB 65581 RICVAL 303S 085BE6065 BROOKHURST CONSTITUTION SW HTB 08189 RICVAL 303S 085BE6080 BROOKHURST YORKTOtaN SW HTS 08184 CONPLU 51 085BE6085 BROOKHURST YORKTOWN NE HTB 11091 NATSUN3 574-B 0858E7010 SROOKHURST STONYBROOK SE HTB 07M - 0858E7011 BROOKHURST PECK SW HTB - 86 085BE7020 BROOKHURST MEREDITH ES HTB 07885 - - 0858F6010 ADAMS LAWSON LN SE HTB 65567 - 86 C858F6020 ADAMS PICADILLY NW HTB 07880 - 86 0887H1010 PAC CST HWY 11TH ST WS HIS - HARIND 510-H 0887H1016 PAC CST HWY 14TH ST SE HTS - NATSUN2 574A1 0887H1035 ORANGE 7TH SE HTB 07143 28RMVD 0887H1036 ORANGE 1ST NE HTB - HARIND 510-H 0887HI038 PAC CST HWY MAIN SW HTB - NATSUN3 574A1 088781040 ORANGE 9TH EBFS HTB 07144 NATSUN2 574A1* 0887H1092 PAC CST HWY 11TH NE HTB - NATSUN2 574A1 0887J1015 MAIN ACACIA NE HT8 - HARIND 510-H 09/16/98 12:07 FAX 8187030638 BENCH AD 16007 CITY BENCH REPORT BENCH AD CITY: NTH - HUNTINGTON BEACH T 0409/16/98 PAGE 6 8 BENCH ID STREET CROSS STREET CRNR CI7Y ZIP PERMIT CUSTOMER COPY A .. 0887J1018 ATLANTA HUNTINGTON HE NTH - MATSUN3 574A1* 0887J1019 ATLANTA HUNTINGTON. NE NTH - - 86 0887JI025 ORANGE 1ST NW NTH - - 86 0887J1026 ORANGE 1ST NW HTB - - 86_ 0887J1031 ORANGE MAIN NE .NTH - GUSBRO 67-A* 0887J1032 ORANGE MAIN NE NTH - MCAREC00 0887J1040 ORANGE MAIN SW NTH - TERHAR 979 0887J10" ORANGE MAIN SW NTH - - C887J2005 HUNTINGTON PAC CST HWY NE NTH - - 86 0887J2033 PAC CST HWY HUNTINGTON NW NTH - MCARE000 0887J2035 PAC CST HWY HUNTINGTON NW NTH - NATSUN3 574A1 0887J2040 PAC CST HWY HUNTINGTON SE NTH - MCDONAL 3-AA 0887J2051 PAC CST HWY 21002 GRDR NS NTH - NATSUN3 574A1 0887J2097 PAC CST HWY 2ND SW HT8 - SKICRA 54A* 0888A1008 ATLANTA BEACH NW NTH 08602 NATSUN2- 574A1 888 0A1030 BEACH ATLANTA ' NE NTH - HARIND 510-H 088BA1032 BEACH ATLANTA NE NTH 12280 CONPLU 51 08SU3010 PAC CST HWY BEACH NW NTH 06837 MCDONAL 3CC C UA3015 PAC CST HWY BEACH SE NTH - NATSUN3 574A1 088WO18 PAC CST HWY BEACH SE NTH - CRUFOR 245A1 OBUS3022 PAC CST HWY NEWLAND NW NTH - NATSUN3 574-B 088893025 PAC CST HWY NEWLAND SW NTH P CONLIC 133 0888CIO32 ATLANTA/9051 MAGNOLIA MKT NTH LUCKYS - 67* OBUC1045 MAGNOLIA ATLANTA NE HTB - C21SEL 209E 0888C1050 MAGNOLIA ATLANTA SW NTH - NATSUN2 574-8 0888C2030 HAMILTON MAGNOLIA ' SE HT8 07135 NATSUM3 574A1 OBUC2040 HAMILTON POLYNESIAN SE NTH 09117 - 86 088SC2051 MAGNOLIA HAMILTON NE HTB - GUSBRO 67-A 088BC2060 MAGNOLIA STILWELL ES HT8 09344 GUSBRO 67-A 088BC2065 MAGNOLIA STILWELL NW NTH - MB 86* 08MC3010 MAGNOLIA BANNING NE NTH 09116 MCAREC00 OBBZC3020 MAGNOLIA BANNING SW HT8 12147 - 86* 0888C3030 MAGNOLIA BERMUDA SW NTH 12148 - 86* 0888C4001 MAGNOLIA PAC CST HWY LOOP HT3 - MCAREC00 - C888C4015 MAGNOLIA PAC CST HWY NE HT8 12966 HARIND 510-H 088BD2010 HAMILTON BUSHARD SE HTB 09119 - 86* 088803020 HAMILTON LEHAU SE NTH 09118 - - C88804000 BROOKHURST PAC CST HWY LOOP NTH - MB C88804310 BROOKHURST BUSHARD NE NTH - HARIND 510-H C88SD4011 BROOKHURST BUSHARD NE HTB - MCAREC00 - C88BD4020 BROOKHURST PAC CST HWY LCOP NTH - MB 86 0888D4021 BROOKHURST PAC CST HWY LOOP NTH - CRUFOR 245A1 OME101C BROOKHURST ATLANTA NE NTH 09121 CONPLU 51 C888E2010 BROOKHURST HAMILTCN NE NTH 65582 NATSUN2 574A1 C888E2011 SROOKHURST HAMILTON SW NTH - MB 86 C888E2030 HAMILTON BROOKHURST NW NTH 08137 - 86 160- 140- 120- 100- .e 40- 20- Q Eller Chancellor Culver Gateway Outdoor Outdoor System � llh m Flo ❑ 40% Revenue to City ,((note compensation only hard dollars", no for inkind services ❑ 20% Ability of vendor to perform contractual obligations. (Bonding, financial stability, resources & personnel) ❑ 20% Appropriateness and acceptability of approach and workplan (from start to finish, inkind services, installation, maintenance, re & innovation) ❑ 20% Qualification/Knowledge of and experience with similar project (past performance, references) IN Overall Total out of 200 ,I I �ij1�IuP��� �II 1�a�uri�,"ao� G,�d�T-0i nee �y�ir.uul�l4 ^ ^, I 1 Eller Chancellor Culver Gateway Outdoor Outdoor System Bus Shelter Evaluation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Eller Chancellor Culver Gateway Outdoor Outdoor System Bus Shelter Evaluation � nnoi Appropriateness ancfaccepta6iCity of approach andwor4Can Eller Chancellor Culver Gateway Outdoor Outdoor System Bus Shelter Evaluation Quaty-icationlrnowfedg,eofandeVefience'withsimi(ar project Eller Chancellor Culver Gateway Outdoor Outdoor System Sus Shelter Evaluation OveraCC7otat out of 200 Eller Chancellor Guwer uwavrruy a -'� .. t y � a- 4, i e N toAb N'' O> V 00 0 ', O o 0 0' ,Y Revenue to City r.3vK -*,Vex- y 1 Ability of.vendor to perform contractual r ... . obligations_ . a. _ D.- '`Appropriateness and � M. . acceptability of approach anid workplan Q, 1 CD QualificatioNKnowledge of and experiencelwith -- similar project _ = c, Overall Total out of 200� T je _ k. - Chancel ear '-'' J �� .. ..; ' , fa ,. ,, _... :" ✓r'` .,,_,.' � 1 r'.• J. 1 � 41 ®Chancellor ,. r t', 100% y 4 4 u 90%r, a; r JS' � "JI - :.•— rr::lj 70°/O .y'f !�' YJ1,, - 1. �'.';D` - rti'I• ', I '_ yr �y q L 6 CI ,. Bus Shelter`Peoposal 50'/0 .350 t 35% .,, y, 1. W 30% r- 20'/0 10°/O re - . 0 : C ^ ' C d CW 19 y . - 3 1 Sry 1 1 �• C � ' V]. ... - �•'� , •'.Y Ir�.I. 4 I- '�. .i 1. C'._ — `..1"t'..W UO 1 . .0.(1 n I1. J•:i.r S „�.,, T ... C. '�.' R R , m °-Cc I 1^` �r. r .Q-. C1 �� ; �� vr, t0,. v .'O ,y •✓r l0 ,r ..f CL l0 jd t ,.� .,Cc ° NO 61 r� o n _ Ne Revenue to,Cii i 1 i i Iiii i+I», 1! }I,l4{! 11ijII! h '. (!{�i _ , Ability of vendor.'to perform contractual, j 4�r'1 �� it { 1 III J 1{!{I' Il1,I}� ji, , _ obligations. ;''Appropriateness.and _ - of 11 � I, Ii _ ` approach and workplan I { Q, Kd Qualification/_ nowledge, - -` ° of and experience With similar project�''� .' :Overall Total out of 200: 5 1 r '. •g r t� � 'i,. _ N - y- 0- = C O O O O' .O O 0 0 0 0 0. 0 0 O. 0 O O O 0 o 0 Revenue to City, Ability of vendor perform contractual obligations. =. Appropnateness_ -arid g Bey. acceptability of approach and wrorkplan z .o `Qualification/Knowledge _ of and experience with �� '` +�14. t similar -protect 1 'Overall Total out of 200 r J}_- -- 1 - y r c _ f it � . � 1 , 1 _.✓ .} . � t � J .. r^.� ,.ram ®utc�oor,S 'stenZ { y r � } DUtdOiOr r •« r ��J��.d „'_ � {�r�: a �. ���� � -v � IC-. ��, r.. � �'� � P�, Ic,�r� � � �`� � .,✓� �� �..f'. .' : � �� �h I r I� - ,c, + � ��'".v-�{r , 1'00'/0 , -.90 /o • err. 60% - r� 70'/ a 60% . a 4 45 /o a , , 0 36 35% 7 /o �4 s Bus: Shelter Proposal 50 /o � 30 /o � �.- 1- ^ 4 % 20% a I /o f I cc . f tiC� s � i! i' r' (� O. + P J O 7 rr t fA �'� Ou _ 4 � a C> -C� O ' V'v.'' m"r i. rJ.: If „ O;i O i rr tr'tO i N, r .Q I� ' .. r 'Cc i r�,� d �� ::�,. V '�yyy� W Q. H �, C1 O. l4 . =Q;.. r— C N f cc Qi {, y r -rt �01 �.,, i '., ., •;;' r 7 tier �' , Vxv,Milt �DdS:pCltNa/t�K■JitTt(i6 e;z,•. is _ Cdl,ier,iilt � _. �' r{t':: - hl1[ �:� .s a � i •�- � . �. �• - rnt �ezL' r,z� � -:� Wawa_ iuy .7ssRq t�.•TDtSacir2ie'" - - fTDCRr_ 6 .i- �Uraru ` :• rlanta - Sail. : mot Tonr:t \;Lng ler>= sue\ �- �G., El Ming o^ 1 U Sun C iY . Peari `mat. uxF�. �o Mesa emp: i60 Phoet mX C1ar,!l.-r =•: 87 61arI � Gila eend ' 10 Flor -1 �^ HOUS7Q14 _�''� ay s . s c,saden r=w4p ri , _ ;� � 711; xz 1 r I exa L RRLLz]� lSl ��� a1SSL-x 1 IISI 20j, w...: .. C.:rec Sand (It P v evoke k XSapuf.21 ti;xbr ti -. •�r3. a =-izt-x -- Fr :ktltt �4t 1e ' OL2RC Wes `a Bs,d:r7��'•-_-,f�s �U (\ (!�.',a-�_i`: tee.. Sar, Antonio j/i; rf ✓`� .•-r t �_ •sue::-,.,.'ax'. Ver Gr:i �� .c 1a•s.•v� Po -.. y.. �S ' 'San SAN FR N tit ..� T.ta•.., L 8.7 • N! EMYL! --:+%fJ Q ttSkt8. 117ter 77rratty::� � 7' wr AerEm. THEY •. ; �-:vttYts11 rip rswamp• -� r� rXl .,. ��"L- Rea Ssu3t, � Yr '• resat. sn Ya ve ►totif Fa't r ... ''X _ - z� • - -_Tvsr:�� r16t0►tt 8 Z `,` J ••Mi eozrc s :oc: y� '$araa.3 � PI; ,. crave •.'\ v�.n. -� :�eutt \. J��� SCZ Clt•t -••.see �'�' '• K,�rvR 'tt �rr:m • � � :Wt. 71):OrYlp1 RECORD REVENUES Achieved record revenues of $790 million, an increase of 98 percent over 1.996. RECORD PROFITS AT THE OPERATING LEVEL Reported $302.7 million in operating income before depreciation and amortization, an increase of 97 percent over 1996. RECORD AFTER TAX CASH FLOW Produced $213.4 million in after tax cash flow, an increase of 99 percent over 1996. RECORD AFTER TAX CASH FLOW PER COMMON SHARE -DILUTED Earned $2.33 of after tax cash flow per common share, an increase of 62 percent over 1996. CONTINUED GROWTH OF STOCK PRICE Clear Channel's common stock price per share increased 120 percent during 1997 and has compounded at an annual average rate of 89 percent over the last five years and 57 percent over the last ten. ADDITION.TO THE S&P 500 The Company was added to the widely followed S&P 500 in recognition of its industry leadership. OUTDOOR ADVERTISING Emerged as a leader in the Outdoor Advertising Industry by acquiring Eller Jledia Company, announcing a proposed merger with Universal Outdoor, and making an offer to purchase More Group Plc. PUBLIC DEBT OFFERING Received an investment grade debt rating from both Moody's and S&P, and subsequently raised approximately $300 million in the Company's first public debt offering. In Thousands Except Per Share Amounts Gross revenue Operating income before depreciation and amortization Operating income Net income Net income per common share - diluted - After tax cash flow(1) After tau cash flow per common share - diluted (1) CONTINUED EQUITY FINANCING Issued approximately $1.1 billion in equity in order to maintain conservative financial leverage and take advantage of attractive opportunities. ENLARGED CREDIT FACILITY Increased the size of the Company's revolving credit facility to $1.75 billion. DOMESTIC RADIO ACQUISITION'S Continued the expansion of our radio group by adding 70 stations during 1997, bringing the total number of stations owned or programmed to 173; most notable v: as the acquisition of 43 stations from Paxson Communications Corporation. INTERNATIONAL RADIO EXPANSION The Australian Radio Network, which is 50 percent owned b}' Clear Channel, acquired two additional stations during 1997. Clear Channel also acquired a 50 percent interest in Radio Bonton s.a., a company which operates one FM radio station in the Czech Republic. Finally, an agreement vas reached with Radio Shanghai by which Clear Channel will sell airtime on 13 radio stations broadcasting in Shanghai, China. WIRELESS CONINIUNI CATION TOWER INDUSTRY Invested inAmericanTower Corporation, which has subsequenth announced an agreement to merge with AmericanTower Systems and create t9e definitive Ieader in that industry. ENRICHED MANAGEMENT TEAM Continued to develop management teams at the local level; these have become the single greatest strength of the Company. Additionally, through promotions and recruitment, enhanced the support group overseeing these managers. 1997 1996 % Change $790,178 $398,094 98% 302,664 153,407 97% 167,574 99,090 69% 63,576 37,696 69% $.67 $0.51 31% 213,445, 107,318 99% $2.33 $1.44 62% (1) Defined as net income before unusual items plus depreciation, omortization of intangibles (including nonconsolidoted affiliates) and deferred taxes. Cross Revenue IN MILLIONS F- $790.2 $398.1 I $283.4 i $200.7 t $135.7 ;X 1993 9A _ ® y, 199 1995 1996 1997 After Tax Cash Flow BEFORE UNUSUAL ITEMS IN MILLIONS I $213A $107.3 $71.1 $46.9 L $26I.6 L L___ 1993,99 993 9A .19 1995 1996 1991 Operating Income BEFORE DEPRECIATION AND AMORTIZATION $302.7 IN MILLIONS $153.4 L $112.6 I $72.7 $42.2 — 1993 9A --MR. 19 1995 1996 999 1 After Tax Cash Flow Per Common Share - Diluted BEFORE UNUSUAL ITEMS $2.33 993 d MR''® g 1 1q9 1995 1996 mpppp- 1991 Clear Channel Communications, Inc. • 1997 Annual Report LE T T E R TO THE. Dear Fellow Shareholders: I am pleased to report that nineteen ninety-seven was the most successful year in our Company's history. We enjoyed continued success in our broadcasting business, setting new records for after tax cash flow. In addition, our entry into the outdoor advertising business has been well rewarded with immediate financial success. After tax cash flow per share, the most important measure of our Company's success, increased sixty-two percent from $1.44 in 1996 to $2.33 in 1997. Gross revenues increased from $398.1 million to $790.2 million from 1996 to 1997, an increase of nineryeight percent, while operating income before depreciation and amortization increased from S 153.4 million to S302.7 million over the same period. These strong fundamentals contributed to the ongoing growth of shareholder value. Clear Channel's common stock price increased 120 percent during the past _ }ear. Our Company's stock price has compounded at an annual average rate of fifty-seven percent over the last decade, making it one of the best performing stocks on \ . the New fork Stock Exchange during that period. Lowry Mays BROADCASTING • The Telecommunications Act of 1996 initiated a wave of consolidation in the radio industry that continued throughout 1997. Since our last annual report, our Company has increased the number of radio stations, it owns, programs or sells airtime on from 109 to 184 stations which are located in forty domestic markets (this includes all pending transactions). In addition to these radio stations, our Company continues to successfully operate eighteen television stations in eleven markets across the United States. Clear Channel also continues to have a significant interest in the field of Spanish language radio broadcasting through its 32.3% stake in Heftel Broadcasting. Finally, during 1997 Clear Channel added to its international operations by acquiring two new stations in Australia and one in the Czech Republic. The largest of our 1997 radio acquisitions was the purchase of Paxson Communications' forty-three stations during the fourth quarter of 1997. These assets are an excellent addition to Clear Channel because they are clustered in Florida. a region of rapid growth and attractive markets. Even in the brief time since the acquisition, we have begun to capitalize on the excellent local management and infrastructure at these stations, continuing their tradition of community service and development into truly excellent performers. The decision to concentrate on Florida is consistent with our Company's long-standing policy of mal.:ng investments that have an inherent growth profile. During 199— a great deal of our radio station acquisitions were located in markets where Clear Channel already had a presence. By making these `tuck -in' acquisitions of broadcasting stations, w e not only improve the operations of the acquired assets but also enhance the performance of our existing stations in that market. Stronger station groups allow our Company to provide its clients W'th more choices and greater flexibility. The following'tuck-in' acquisitions were added dung 1997:WZZU-FM,V,'FXC-FM,WF;1K-F.M and WDUR-ALM in Rale'.2h. NC; WQ,'vIF-FM and WHKW-FM in Louisville, KY, KHOM-FM in New Orleans, IA; KJOJ-A.Nl in Houston, TX;WVTI-FM in Grid Rapids, MII;WMM-FM,WZTR-FIT and WOKYAM in Milw-aukee.wl: WXRM-FM andWOIZ-FBI in Fort Myers,FL; Cvti1Ft:=N1 and WOIC-AM in Columbia, SC;AVLAN-A,"M in Lancaster. RJ K-N5%-FM, KSSN-FM and KOLL-FM in Tittle Rock,AR; and KQS= FM in Tulsa, OK. During the year we, also dosed on transactions that added five new, markets to. our Company's radio broadca--,!ng operations. WODE-FM and WEEK -AM in Allentown, PA; KTO.%I- FM, KDON-FM, KOCN-FM, KRQC-FM, KTOM AM and KDON .M%I in :Monterey, CA; WING -FM, WGTZ-FM and WING -AM in Dayron, OH;WKXI-FM,WJMI-FM,WOAD-&M andWKXIAM in jackson NLS were all deals that added markets to the Clear Channel fas_ir In Albany, NY Clear Channel has an 80% interest in Radio Enterprises, Inc., which owns WQBK-FM, WTMM AM, WQBT _=\1 and WXCR FM. During the year, our television operations continued in their tradition of strong performance and leadership. As with our radio business, we continually strive to give each station an idca:�ry consistent with the community it serves in order to enha ce viewer loyalty and distinguish it from its competitors. Across :he ,..r Communications, Inc. • 1 "7 Annual Report I" 77 L E, T T E - R T O THSHAR.EHOLDE-, J_E,�­_ Company during 1997, plans were made for the conversion of each of our television stations to digital broadcasting. We are excited about the opportunities that this new platform will give Clear Channel to serve our viewers. Our ongoing strategy of affiliating the majority of our stations with the most rapidly growing networks gives the entire group a more attractive growth profile. Additionally, our substantial investment last year in news operations has begun to pay a healthy dividend to our Company and the viewers it serves. SPANISH LANGUAGE BROADCASTING Clear Channel's investment in Heftel Broadcasting continues to give our Company a means of participating in the rapidly growing Spanish language broadcasting arena. We remain very excited about the growth prospects for this business. Spanish speaking listeners have been a traditionally underserved demographic group, which allows Heftel the opportunity for rapid expansion. Heftel is the leading domestic Spanish language radio broadcaster. with stations in eleven of the top fifteen Spanish language radio markets. Although our investment is a passive, nonvoting interest, we are confident that Heftel's outstanding management team will continue to produce long term value for its shareholders. Heftel's price per share increased in value by 197 percent during 1997, making the value of Clear Channel.s.. stake approximately S664 million at December 31, 1997. OUTDOOR ADVERTISING Nineteen ninety-seven w-as also a year marked by our Company's entry into the outdoor advertising sector. Not only did we close on our first major outdoor acquisition, Eller Media Company, but we also initiated a merger with Universal Outdoor. On October 23.1997, our Company entered into a stock for stock merger agreement with Universal Outdoor «lued at approximately $1.7 billion. The proposed merger is expected to close during the first half of 1998, at which time Universal shareholders will receive .67 shares of Clear Channel stock for each share of Universal stock held. Through this merger, our Company will become the largest domestic outdoor advertising company, with a leading presence in twenty-one of the top thirty-five media markets across the United States. The Universal transaction adds display faces in twenty-two markets in which our Company's existing outdoor company did not operate. Additionally, eight of Universal's outdoor advertising markets overlap with our Company's existing operations, including such markets as Memphis, Tampa, Jacksonville, Orlando, Minneapolis, Dallas, Chicago and Milwaukee. This merger demonstrates our Company's continuing commitment to leadership in all media segments in which the Company is a participant and is a testament to our continuing commitment and enthusiasm toward the outdoor advertising business. Universal was founded in 1973 and has grown rapidly over the past three years through strategic acquisitions in the middle and eastern United States. The acquisition is highly complimentary to the Eller operation, whose geographic concentration is in the middle and western United States. Randall Mays and Mark Mays Additionally, in March of 1998 Clear Channel announced that it had offered to purchase the stock of More Group Plc. More Group is based in London, England, and has operations in 22 countries.These countries are located primarily in Europe.We see this acquisition as a further step in our Company's international expansion. Our acquisition of More Group will provide us with a platform to continue to expand on a global basis. It also is an example of our ability to invest our capital in ways that will augment Clear Channel's growth. Further information on More Group can be found later in this Annual Report. Another strategic outdoor acquisition completed during 1997 was our purchase of the Union Pacific Railroad Company outdoor advertising display license portfolio;w-hich is comprised of approximately 4,000 licenses to operate displays on railroad rights -of -way. The Company acquired the right to manage this portfolio for the next ra-enry•-five years. The agreement also calls for our Company to develop and manage new displays along the railroad right-of-way, which is concentrated in California, Illinois and Texas, during the next rw-enry-five years. During 1997, aside from the purchases mentioned above, our Company completed numerous separate acquisitions of outdoor advertising displays in eleven markets, including Los Angeles, Dallas, Chicago, Milwaukee, Houston,Atlanta and San Antonio. These acquisitions enhance our Company's outdoor advertising coverage in these important markets and further enable us to provide superior service to our clients. They also create economies of scale and help us to operate more effrcientl<- and profitably in our served markets. During the coming year we will continue to focus our attention on finding innovative new ways to help our clients market their products and seri,ices. We are confident about the growth prospects of our outdoor business. Additionally, we will remain a consolidator of the industry to the extent that we are able to make investments that meet our acquisition criteria. LETTER T Q T H E SHAREHOLIJE.RS INTERNATIONAL During the past twelve months Clear Channel has continued to extend its strong position as a broadcaster both in Australia and New Zealand through its subsidiaries, the Australian Radio Network and the New Zealand Radio Network.Within both of these countries, consolidation continues to develop in much the same way that it has in the United States. 1997 also marked the beginning of our Company's radio presence in Eastern Europe. In May, Clear Channel acquired a fifty -percent interest in Radio Banton, a radio station serving the Czech Republic. The owner of the remaining portion of this station is Bonton s.a., a large, diversified Czech media company. We are hopeful that this single station will serve as an effective foothold for further expansion in that region. Finally, in December of this past year we were successful in drafting preliminary agreements with Radio Shanghai, which operates thirteen radio stations and one cable television station serving the Shanghai, China market. The agreement calls for Clear Channel to assist in selling airtime on these fourteen stations, which cover approximately fifty million Chinese citizens, and also calls for sharing of certain training programs and programming content. We are very pleased with this accord and see it as a platform for our Company's continued growth in Asia. Foremost in our minds in pursuing international opportunities is the maintenance of a conservative and prudent approach toward evaluating the possibilities for expansion. While we understand that emerging marketplaces hold strong potential for advertising -based businesses, it is equally important to proceed at a pace that ensures proper protection of those investments. We are committed to the continued search for broadcasting and outdoor operations in countries that enjoy stable currencies, attractive industry dynamics, rapid growth of advertising expenditures, and sound political infrastructures. CROSS -MEDIA SYNERGIES During 1997 our Company renewed its attention to the area of maximizing the value of owning multiple types of media outlets in a given market. The benefits to our clients of being able to provide more than one conduit through which to market their products and services are quite substantial. In addition, our 1 Company can often utilize capacity within those alkernative`me(Ra- to more effectively market its own services. For example, in the eleven markets where we have broadcasting and outdoor operations C'including all pending transactions), we use vacant outdoor advertising space to effectively promote listenership or viewership of our Company's broadcasting stations in that particular market. In the eight markets where we have radio and television broadcasting operations, we can utilize unsold airtime in both media to encourage individuals to watch our television stations or listen to our radio stations. For this reason it is important that we continue to establish these cross -media overlaps within markets; we believe the long-term value they create can be j significant. CAPITAL MARKETS puring 1997, Clear Channel received an Investment Grade rating from both Standard & Poor's Corporate Ratings and Moody's Investors Service on its Senior Debt. This rating reflects the strength of our Company's balance sheet, which Management has always felt to be a great asset. The investment grade rating made it attractive for our Company to enter the public debt markets for the first time. In October, our Company raised approximately $300 million, pricing thirty -rear debentures at a coupon of 7.25%. In addition to this issuance of public debt, Clear Channel refinanced its existing Revolving Credit Facility, increasing the amount available under that line to 51.75 billion. Clear Channel continues to have one of the lowest costs of capital of its peers, which we view as a strategic advantage in our consolidating industries. In addition. during 1997, our Company continued to improve on its access to capital by issuing 20,73" ,426 new common shares which strengthened our balance sheet and provided additional acquisition capacity, should proper opportunities become available. STRATEGIC DIRECTION Our Company continues to be committed to its proven corporate strategy: • Decentralized, flexible, entrepreneurial business units that place on emphasis on simplifying structures and procedures, • Sound centralized financial management, • Growth through internal expansion of existing operations, supplemented by strategic acquisitions, • Internal capital investment to improve quality and market leadership, • Insistence on adherence to the highest standards of integrity and business conduct, and • Significant attention to long-term strategic planning. The growth of our core businesses is healthy, and the markets we serve continue to be excellent environments in which to achieve our long-term goals. Our position within these markets . is, as it has been in the past, one of Ieadership.To the over 5,500 members of our team who made 1997 possible,I personally thank you. And to our shareholders, rest assured that we continue to work hard to enhance the long-term value of your investment. Lowry Mays Chairman and CEO March 9,1998 4 • Clear Channel Communications, Inc. 0 1997 Annual Report D O ]VI E S T I C RADIO STATIONS WKSJ FM - Country :WKSj A.M Country W1LXC FM Adult Contemporary NS'RKH FM Classic Rock WDWG FM Country WNTM AM News/Tall: WNSP FM (1) Sports Little Rock KQAR FM Contemporary Hits K.-%IjX FM Classic Rock KDDK FM Country KSS- FM Country KOLL FM Oldies Monterey KTOM AM Country KDON Atli Contemporary Hits KOCI FM Oldies KDON FM Contemporary Hits KRQC FM Classic Rock KTOM FM Country New Haven WKCI FM Contemporary Hits WAVZAM Nostalgia WELL AM News/Talk WAVK FM . Adult Contemporary WIMY FM Soh Adult Contemporary WFKZ FM Adult Contemporary Ft Myers/Naples WCKT FM Country WQNU FM Country • _ _ • WIOI A.Ni Nostalgia WXRM FM SoftAdult Contemporary WOLZ FM Oldies Jacksonville VMNZ.i,-N1 News W\•ZS AM Sports VTSJ FM Jazz WROO FM Country WPI.A EN Rock WBGB F_Nf Classic Rock Miami/ft Lauderdale WFTLAM News WINZAIM News/Sports WIOD AM News/Talk WPLL FM Rock WLVE FM jazz WZTA FM Rock WHYI FM Contemporary -Hits - - - WBGG FM Classic Rock Orlando WWNZAM News WQTMAM Sports WSHE FM Modem Rock WJRR FM Rock WMGF FM Adult Contemporary WTKS FM Talk Panama City WDIZAM Sports/Talk WSHF FM Adult Contemporary WPBH FM Oldies WFSY FM Adult Contemporary WPAP FM Country Pensacola WYCL FM (1) Oldies WTKX FNI Rock Tallahassee W-'NIS A__Ni News/Talk W7ZT FJi jazz XX-ENT FNI Country WSNI EN Oldies W :XSR F.Ni Modem Rock Tampa/St. Petersburg WILV FM Adult Contemporary WfLNZA_Nl (Ix'_) News WZTM AM Ness WSJT FM Jan V.Mn FM Classic Rock WSRR FM Modem Adult Contemporary WRBQ A.NI Adult Urban Contemporary WRBQFM- -- - - - - Country West Palm Beach WBZTAM News/Talk/Sports WKGR FM Classic Rock WOLL FM Oldies WHASAM -- - News/I•aMports .t WAMZFM Country WHKW FM Country WTFX FM Modem Rock W WKY AM News/Talk/Sports WKJK AM Adult Standards WQMF FM . Classic Rock New Orleans WODT AM Blues WQUE FNI Urban Contemporary WYLD AM Gospel WYLD FM Urban Adult Contemporary W NOE FM Country KKK D FM Alternative Rock KUINIX FM Contemporary Hits Springfield WHYN AM News/1•alk/Sports W'HYN FM Adult Contemporary Grand Talk WOOD FM Adult Contemporary - wBCT FM Country WTKGAM News/Talk/Sports WCUZ FM Country WVTI FM Contemporary Hits WKXI AM Solid Gold Urban Oldies WKXI FM Urban Contemporary WOAD AM_ ?" Urban Contemporary WJMI FM '-- Rhythm & Blues WXRA FM Alternative Rock WTQRFM Country WSJ AM News/Talk Raleigh WQOK-FM Urban Contemporary WNNTL FIN1 Gospel WDLRA.NI Urban Oldies VT F:V1 L: rban Adult WTX'K FM Urban Adult NEW 1 Albany ? WQBK FM i Alternative Rock WQBJ FNI Alternative Rock )M. Lrt AM News/Talk WXCR FJI Classic Rock Cleveland WNCX FM Classic Rock WEREAM News/Talk WENZ FM Alternative Rock Dayton WING FM Classic Rock WING AM News/Talk/Sports WGTZ FM Contempory Hits (1) Joint Saks Agreement or Local Marketing Agreement (2) Pending Acquisition Cigar Channel Communications, Inc. 0 I M Annual Reparf • KTOKAM News/Talk/Sports KEBC AM News/ralk/Spanish KJYO FM Contemporary Hits WKYAM (i) News/Talk KTST FM Country KXXY FM Country KQSR FM Soft Rock Tulsa KAKC AM News/Sports/Oldies KMOD FM Album Oriented Rock KQLLA,Nl axe) Sports/ralk KQLL FM (1x,-) Oldies KOAS FM (ice) Smooth jazz KMRX FM Modem Rock WODE FM Oldies WEEXArI Country Lancaster WLAN FM Hot Adult Contemporary WLAN Art Big Band Readin WRAW AM Middle of the Road WRFY FM Contemporary Hits WWBB FM Oldies W WRX FM Classic Rock Columbia �= WWDM FM Urban Contemporary WARQ FM Alternativc Rock W.%IFX FM Classic Rock WOIC ArI Urban Gold Cookeville WHLB Art Country WPT\ Art News/Talk WGIC FM Adult Contemporary WGSQ FM Country Memphis ♦Y'i RK F-M Urban Contemporary WDIAA-M Adult Urban WEGR FM Classic Rock WRFC A-M News/Ialk WKXQ FM Alternative Rock KJaIS FM UrbanAdult Contemporary KW.A—%I Art Religious Austin KPEZ FM Classic Rock KHFI FM mHrts orary_ KEPI Oldies KFON AM Sports El Paso KPRR FM Contemporary Hits KHEY FM Country KHEY AM Oldies Houston KPRC AM Newrts KSEV�AM�� Nev.Vralk/Sports (1) joint 5:tlesAgrc=cntorLocalMaritctingAgteement (2) Pending Acquisition KNUQ FM Adult Urban Contemporary KBXX FM Urban Contemporary KEYS FM (i) Rhythmic CHR KJOJINN Chd5darVralk I;JOJ FM Rhythmic CHR San Antonio WOAI Art News/Talk/Sports KQX-T FII Adult Contemporary KTi.Zt Art Nea s/ral0- ports Y,AJA FM Country KSJL FM (i) UrbanAdult Contemporary Norfolk WOWI FM Urban Contemporary w7CD FM Smooth jazz WSVV FM Adult Urban Contemporary WSVY FM Adult Urban Contemporary Richmond WRVAANf News/ralk/Sports WILNL AM Sports WRVQ FM Contemporary Hits WM FM Album Oriented Rock WTVR FM SOhAC WTVRAM Nostalgia WKKV FM Urban Contemporary WMIL FM Country WOKYAM Adult Standards WM FM Oldies N E T WORK S Birmirlg am Alabama Radio Network Coral Gables Clear Channel Sports Gainesville Clear Channel Sports Maitland ' Florida Radio Network IOWA � Clear Channel Sports Nashville • ""' Tennessee Radio Network - San Angelo Voice of Southwest Agriculture College Station Clear Channel Sports Des Moines Clear Channel Sports VIRGINIA I Richmond KENTUCKY' (T is News Network - Louisville Kentuckv News Nerwork OKLAHOMA Oklahoma City Oklahoma News ,Network D_ _ O :M _ EST 1 T E L E V I S I O N wPMI ` NBCTV15 WJTC UPNTV44 (1) KTTU ' UPNTV18 Little Rock KLRT FOX Tv16 KASN UPN TV38 (1) I i Jacksonville WAWS FOXTV30 UPNTV47 (1) KANSAS Wichitc KSAS FOX TV24 AA1K] ICCF%?A FOXTV23 7uls'a � `- KOKI FOX TV23 KTFO tiPNTV41 (t) Harrisburg/Lebanon/ Lancaster V;W CBS TV21 NXIA-H LPN TV15 (1) V-PRI CBS TV12 WNAC Fox TV, 64 (1) 1 i 0 '- Bulletins Tucson Bulletins C-,) 30 Sheet Posters (2) Los Angeles - Shelters 30 Sheet Posters Bulletins Wallscapes Sacramento Shelters 30 Sheet Posters Bulletins San Diego Shelters 30 Sheet Posters Bulletins San Francisco 8 Sheet Posters CZ) 30 Sheet Posters R> Bulletins Transits (2) Wallscapes (2) Indianapolis 8 Sheet Posters (2) 30 Sheet Posters (2) Bulletins (I-) Transit (2-) Des Moines 8 Sheet Posters (2) 30 Sheet Posters (2) Bulletins C2) Shelters Baltimore- 8 Sheet Posters Shelters (2) 30 Sheet Posters 30 Sheet Posters (2) Bulletins Bulletins (2) Transit Transits (2) Wallscapes Salisbury 30 Sheet Posters (2) DELAWARE Bulletins (2) Wilmington MINNESOTA 8 Sheet Posters (2) Minneapolis 30 Sheet Posters (2) Bulletins (2) 30 Sheet Posters (2) Bulletins (2) FLORIDA Jacksonville 30 Sheet Posters (z) Bullctirls C� Miami Shelters Ocala/Gainesville 30 Sheet Posters (z Bulletins (2) Orlando Bulletins 30 Sheet Posters crn Tampa Shelter 30 Sheet Posters Bulletins 8 Sheet Posters 30 Sheet Posters Bulletins New York 8 Sheet Posters (2) 30 Sheet Posters (2) Bulletins (2) 30 Sheet Posters Bulletins Cleveland 30 Sheet Posters Bulletins Wallscapes .wa•• Shelters (2) 30 Sheet Posters (2) Bulletins (2) SOUTH 30 Sheet Posters (-0 Bulletins (2) Chatanooga - 30 Sheet Posters (2) Bulletins (2) Memphis Shelters (2) 8 Sheet Posters (2) 30 Sheet Posters (2) Bulletins (2) Dallas 8 Sheet Posters (s) 30 Sheet Posters (2) Bulletins El Paso 8 Sheet Posters 30 Sheet Posters Bulletins Houston 8 Sheet Posters 30 Sheet Posters Bulletins San Antonio 8 Sheet Posters 30 Sheet Posters Bulletins 8 Sheet Posters (2) 30 Sheet Posters Bulletins Bulletins m 30 Sheet Posters (2) Bulletins m 250 throughout United States (1) Joint Sale Agreement or Local Marketing Agreement (Z) Pending Acquisition Clear Channel Communications, Inc. a 1"7 Annual Report TEN-YEAR CUMULATIVE RETURN Year-end value of $1,000 invested at ' $80,000 December 31, 1987. This represents a compound annual growth rate of approximately 57% ;Cw �� Sr• $60,000 I 541,410 $40,000 i (� 525,327 $20,000 I - $14,565 $10,561 $1,286 $1,420 $1,561 $2,016 $3,142 $0 i 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 $25,000 $24,367 '• PERFORMANCE GRAPH CLEAR CHANNEL I Clear Channel Communications, Inc. COMMUNICATIONS, INC. compared to market indexes. $20,000 --; PAUL.k4GAN :=— - ;BROAbCAST AVERAGE- - - - - - - -ai - Yi t•T �•s.,K,r• y. -,Y fit -'_=ks T^ _ � -- Wit: . - -:s�'�:.:,C• t%mow­ A S&P 50 $ 5,000 '"� •ram. iI _ • . $3,i9T j •� 2,822 _ ram, $0:. sate , 1992 1993 1994 199S 1996 1997 8 • Clear Channel Communications, lna • I"? Annual Report owns" o z 33 m ra 0 00 r 00 9 A x 0 In z In to �41 I, A, In L's AUSTRALIAN RADIO N-ETWO_RK 2WS F Sydney, P Hits and 101.7 Mt MIX10 Sydney, NSW ,- Soft Adult Contemporary 106.5 MHz - ::4 ONE FM Western Sydney, NSW Adult Contemporary 101.1 MHz GOLD 104 FM Melbourne,N ictoria Gold 104.3 MHz TTFM FM Melbourne,V"ictoria Hot Adult Contemporary 101.1 MHz RADIO 1VEW Z:EA;LAND NETWORK Community Radio Radio Waitomo Te Kidd 1170AM Radio Forestland Tokoroa 1413AINI King Country Radio Taumarunui 1512AdNI Lakeland FM Taupo 96.7FM Gisborne's 2ZG 945AN1 Hawera's 2ZH 1557AM --River City. FM Wanganui 89.6FM Radio Wairarapa Masterton 846AM Radio Marlborough Blenheim 97FM,1539AM & 1584AM Radio Scenicland Greymouth 90.5FM, Greymouth 93.1 & 91.1FM Reefton 97.3FM Westport 90.9FM Buller 1287AM South Westland Ashburton's 3 ZE 92.5FM & 8 7 3AM Radio Waitaki Oamaru 1395A,tii Classic Hits FM 97FM Auckland 90FM W ellington 98FM Christchurch 1026AM Radio Northland 98.6FM Hamilton's ZHFNI 9580P FM Bay of Plenty 97FM Rotorua 89FM Bay City Radio, Hawkes Bay 90FM Taranaki 97.8FM Manawatu 90FM Nelson 99FM Timaru 89FM Dunedin 98.8FM Invercargill's ZAFM ZM & Classic Rock 91ZM Wellington 90.9 & 93.5FM 91ZM C3h�tchurch 91.3FM Whangarei 93.1FM 96ZM Dunedin 95.8FM 98.3FM Rotoru Classic Rock '4t 96FM Napier Classic Rock 091 FM 90.6 Newstalk Z13 Auckland 1080A,INI & 89.4FM Wellington 1035AM Christchurch 1098AINI Waikato 1296AM _ Bay of Plenty 1008AM Hawkes Bay 1278AM Taranaki 1053AM & 1557AM Manawatu 927AM Dunedin io4Southland 864AM i 4KO AM Brisbane, Queensland Adult Contemporary 693 KHz 4BH AM Brisbane, Queensland Soft Adult Contemporary 882 kHz 106.3 FM Canberra Adult Contemporary 106.3 MHz 5AD FM Adelaide, SA Adult Contemporary 105.3 MHz 5DN AM Adelaide, SA News/1'alk 1323 KHz F 0s 6 har 4P Clow Charowl CommunieaKons, beL • 1997 Annual Rsport MORE GROUP PLC GEOGRAPHIC REVENUE DISTRIBUTION - 1997 IRELAND US o - 7% - BELGIUM 8% — NORDIC 22% ASIA 1% On March 5, 1998. Clear Channel Communications. Inc.. announced that it had reached an agreement with the board of More Group Plc regarding the terms of a recommended cash offer to acquire all of the issued shares of More Group.The offer values each Nlore Group share at £10.30. More Group is one of the vvorld's leading outdoor advertising companies. It employs more than 1.000 people in 22 countries and operates over 90.000 fixed advertising panels worldwide. Although the majority of its assets are located in Europe. the Company also has operations in the United States._1sia, and Australia.The company _ _operates a number of brands -Adshel (50,000 street furniture panels), More O'Ferrall, Superboards and W'W (40,000 billboards) and More Trans (Transport contracts). From an established, market -leading base in the UK and Ireland, More has developed organically and by acquisition to become one of the world's leading outdoor advertising companies. In addition to developing its market shares through innovative product engineering, More has been at the forefront of consolidation activity in Europe and Asia. It has now established strong market share throughout the world and is well placed to secure further street furniture and transport tenders in its domestic market and internationally. PRODUCT LIME REVENUE DISTRIBUTION - 1997 TRANSIT 3% FURNITURE BILLBO 48% 49 t , BILLBOARDS ENGLAND SCOTLAND « WALES IRELAND UNITED STATES FRANCE BELGIUM SWEDEN DENMARK NORWAY I RUSSIA - ESTONIA - - LAWA I LITHUANIA CHINA I SINGAPORE TANVAN THAILAND AUSTRALIA MALASIA' INDLA' I CANADA* 'Operations Established and bidding for contracts. 12 • Clear Channel Communications, Inc. • 1997 Annual Report .f MANAGE1�ffiN T'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS COMPARISON OF WWNZ-AM. WQTM-AM, WSHE-FM, WIRRFM, WMGFFM and WMSfM . Orlando, FL 1997 VS. 1996 wDiZ-AM, WSHFFK WPBHFAk WFSYFM and WPAPFM Panama City, FL WNLSAM, WJZTFM, WTNTFM CONSOLIDATEDWSNI-FM and WXSRFM 1:4ohossee, FL WKESFM (now WILVFM), - Consolidated net revenue in 1997 increased 98% to S697.1 WZTM-AM, WSJTFM and WHFTFM Tampa, FL million from S351.7 million. Operating expenses increased WBZT-AM, WKGRFM 99% to $394.4 million, compared to S198.3 million for 1996. 10/97 and WOLLFM WYCLFM West Palm Beach, FL Pensacola, FL Operating income before depreciation and amortization 10/97 WHNZ-AM Tampa/St. Petersburg, FL in 1997 increased to S302.7 million from S153.4 million. or 9/97 9/97 WDUR-AM, WFXCFM 97%. Depreciation and amortization increased 149% to S 114.2 and WFXKFM Raleigh, NC million from S45.S million. Interest expense increased to S75.1 9/97 KTOM,AM/FM, KDON,AM/FM, million from S30.1 million, or 1- 0%. Other income (expense) KOCNFM and KRQCFM Monterey, CA - net increased to S11.6 million from S2.2 million. Net income 8/97 8/97 WMFXFM, WO1C-AM. Columbia, SC was S63.6 million for 1997, compared to S37.7 million in 4/97 4/97 WKIFAM, WOLZFM 1996. The corresponding earnings per common share -diluted and WFSNFM (now WXRMFM) Fort Myers, FL was 5.67 and 5.51 for 1997 and 1996, respectively. Income tax 3/97 3/97 WMUM and WOKY-AM Milwaukee, WI expense (based on income before equity in earnings (loss) 2/97 2/97 KHOMFM (now KUMXFMj New Orleans, LA 2/97 2/97 WAKXFM (now WVTIfM) Grand Rapids, Ml of nonconsolidated affiliates) in 1997 was S47.1 million, 1/97 1/97 WQMFFM and WHKWFM Louc•ille, KY reflecting an annual average effective tax rate of 45%, 12/96 12/96 Radio Equity Partners, LP (REP) compared to S28.4 million, or a 40% effective rate in 1996. WRXWM, WEGRFM, WREC-AM Memphis, TN Equity in earnings (loss) of nonconsolidated affiliates WWBB.FM and WWRXFM Providence, RL increased to S6.6 million in 1997 from S(5.2) million in 1996. 12/96 12/96 KIMSFM and KWAM-AM Memphis, TN 10/96 10/96 WHKWAM (now WKJK-AM), The predominant reasons for the increase in net revenue and WWV-AM and WiFXFM Louisville, KY operating expenses are rwo fold: first, the revenue and expens- 8/97 10/96 WL4N-AM/FM Lancaster, PA es associated with the operations of Eller Media Corporation 8/96 8/96 Radio Equity Partners, LP (REP) (Eller), an outdoor media company acquired in April of 1997. This WARWK WWDMFM WXRMFM (now WQNl1FM) Columbia, SC new outdoor segment, including subsequent acquisitions and and WCKTFM Ft Myers/Naples, FL license management agreements of approximately 7,000 display WSJSAM, WTQRFM, WXRAFM Greensboro, NC faces, contributed 30% of the Companyt revenue and 27% of the WNOEFM, KUZFM (now KKND•FM) New Orleans, LA Company's operating expenses during 1997. Second, net revenue WHYN,AM/FM Springfield, MA and operating expense increased from radio stations and networks lCW--AM (now KEBC-AM, acquired during 1997 and a full year of operations for those radio IOW -FM and KTSTFM Oklahoma City, OK and television stations acquired during 1996. Station and network 3/97 8/96 Radio Enterprises, Inc (3) acquisitions are as follows: WQBJFM, WXCRFM,WQBK-AM (now WfMM,AM), Acquired eesem Operaratia a S+otion or Network Locotien and WQBKFM Albany, NY 7/96 7/96 WPnTV Providence, RI 11/97 11/97 KQSYFM (now KMRXFM) Tulso, OK 7/96 WNAOTV Providence, RI 10/97 10/97 KMVKFM (now KDDKFM), 6/96 6/96 WTVR,AM/FM Richmond, VA _ KSSNFM and KOLLFM• : _- liitle Rock;_ AB, _ ::.1197 : 5/96. WZZUFM (now WNNLFhk Raleigh, NC 10/97 10/97 Penn State Sports Network Slate College, PA 2/97 5/96 KJOJ AM Houstarr'- 10/97 10/97 Miami Hurricane Sports Network Cord Gables, FL 5/96 5/96 US Radial hmc (USR) 10/97 10/97 Florida Got= Sports Network Gainesville, FL KHEY~M and KPRRFM El Paso, TX 10/97 10/97 Tennessee Radio Network Nashville, TN KJOJfM Houston, TX 10/97 10/97 Florida Radio Network Moiiiand, FL KMJXFM, KDDKFM (now KQARFMj Little Rode, AR 10/97 10/97 Alabama Radio Nehvork Birmingham, AL WHRKFM and WDLAAAM Memphis, TN 10/97 10/97 WZTRFM Milwaukee, VA WKKVFM Milwaukee, WL 12/97 10/97 Paxson Rodeo (Paxsara WJCDFM and WOMFM - Norfolk, VA WHUBAM, WMk4AM, WQOKFM Raleigh, NC WGICfM and WGSQFM Cooke 16, TN WRAW,AM, WRFYFM Reading, PA WAVKFM, WKRYFM and WFKZFM Florida Keys, FL 10/96 5/96 WSVY-FM Norfolk, VA WZNZ,AM, WNZSAM, WFSJfM 10/96 5/96 WCUZ-AM (now WTKGAMj WROOfK WPWM and WNCFM Jacksonville, FL and WCUZFM Grand Rapids, MI WFrL k% WLOD-AM 11/96 5/96 WMYKFM (now WSWW4 Norfolk, VA WPLLFM, WLVEFM and WZTA,FM Miami, FL 5/96 KCAL4 FM and KOASFM Tulsa, OK W11C',FM Pensoeolo, FL 2/96 2/96 WOODAA^/FM, WBCTFM Grand Rapids, MI MAMWEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 10/95 10/95 Voice of Southwest Agriculture Radio Network San Angelo, TX 10/95 10/95 WHPN Harrisburg, PA 10/95 WLYHdV Harrisburg, PA 7/95 WKY-AM Oklahoma City, OK 6/95 WTEVN Jacksonville, FL 1/95 1/95 KMIQFM Houston, 7X 1/95 1/95 KPRGAM and KSEKAM (3) . Houston, TX 5/96 11/94 WENZ-FM ' Cleveland, OH 8/96 3/93 KEPI -FM and KFON-AM Austin, TX (1) Represents the dote in which the Company consummated the purchase of the FCC license. (2) Represents the date from which the results of the station's operations are included with the results of the Company. This date may precede the acquisition date as a result of the Company executing a local marketing agreement (LMA) or joint sales agreement USA) as broker for the station. (3) The Comcany acquired on 80 % interest in these stations. The tangible and intangible assets acquired through the purchases of Eller and the above mentioned stations and networks account for the majority of the increase in depreciation and amortization for 1997. Interest expense increased as a result of greater average borrowing levels and higher average borrowing rates, 6.3% in 1996 to 6.6% in 1997. Other income increased primarily as a result of a S6.2 million gain from the sale of 350,000 shares of common stock in Heftel Broadcasting. Income tax expense rose due to the increase in taxable earnings as well as an increase in the average effective tar rate from 40% in 1996 to 45% in 1997. The effective tax rate increased as a result of the increase in nondeductible amortization expense principally associated with the acquisition of Eller. Equity in earnings (loss) of nonconsolidated affiliates increased in 1997 primarily as a result of the solid financial performance by Heftel. An additional increase resulted from the purchase of a 30% interest in American Tower Corporation, the leading independent domestic owner and operator of wireless communication towers. These increases were partially offset by an eroding currency valuation in Australia and New Zealand. Equity in earnings (loss) of nonconsolidated affiliates is includ- ed in the results of operations for the Company's radio segment. RADIO Net revenue in 1997 increased 53% to $332.6 million from S217.2 million. Operating expenses increased 59% to $201.2 million, compared to $126.6 million for 1996. Operating income before depreciation and amortization in 1997 increased to S131.4 million from S90.6 million, or 45%. Depreciation and amortization increased 74% to S48.5 million from S27.8 million in 1996. Operating income increased 32% to $82.9 million in 1997 from S62.8 million in 1996. The majority of the increase in net revenue, operating expenses and depreciation and amortization was due to the aforementioned radio and network acquisitions. At December 31, 1997, the radio segment included 156 stations for which the Company owned the Federal Communications Commission (FCC) license and 17 stations programmed under local marketing or time brokerage agreements. These 173 radio stations operate in 40 different markets. TELEVISION Net revenue in 1997 increased 17% to S157.1 million from S134.6 million. Operating expenses in 1997 increased 19% to S85.1 million compared to S71.7 million for 1996. Operating income before depreciation and amortization in 1997 increased to S71.9 million from S62.8 million, or 14%. Depreciation and amortization decreased .6% to S17.9 million from S18.0 million. Operating income increased 21% to S54.0 million,in 1997 from S44.8 million in 1996. The increase in net revenue was primarily due to a full year of operations for the aforementioned television acquisitions that occurred in July of 1996 and from improved ratings at several of the television stations. Operating expenses rose predominately due to the inclusion of a full year of operations for the aforementioned television station acquisitions and the increase in selling expenses related to the increase in revenue. At December 31, 1997, the television segment included 11 television stations for which the Company owned the FCC license and seven stations for which the Company programmed under time sales or time brokerage agreements. These 18 television stations operate in 11 different markets. Net revenue and operating expenses in 1997 was S207.4 million and S 108.1 million, respectively. Operating income before depreciation and amortization in 1997 was S99.3 million. Depreciation and amortization was S47.8 million resulting in operating income of S51.5 million in 1997. Assuming the acquisition of Eller was effective at the beginning of 1996, pro forma net revenue in 1997 would have increased 11% to S=64.1 million from 1996 pro forma of S237.0 million. Pro forma - operating expenses in 1997 increased .1% to S 141.9 million com- pared to S141.8 million for 1996 pro forma. Pro forma operating income before depreciation and amortization in 1997 increased to S122.2 million from S952 million, or 28%. Pro forma deprecia- tion and amortization increased 2% to S643 million from S64 2 million. Pro forma operating income increased 86% to S57.8 mil- lion in 1997 from $31.0 million in 1996. Pro forma revenue increased primarily due to improved occupancy and increased rates for usage of display faces. This also resulted in the increased pro forma operating income before depreciation and amortization and pro forma operating income. At December 31, 1997, the outdoor segment operated 57,660 display faces in 17 different markets. . 1997 Annual Report a Clear Channel Communications, Inc. • U MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS COMPARISONOF severance costs, and other write-offs totaling 54.7 millior 1996 VS 1995 related to Heftel's reorganization. All of these equit} • investments are included in results of operations for tha Company's radio segment 'CONSOLIDATED Consolidated net revenue in 1996 increased 41% to $351.7 million from 5250.1 million. Operating expenses in 1996 increased 44% to S 198.3 million, compared to S 1375 million for 1995. Operating income before depreciation and amortization in 1996 increased to 5153.4 million from 5112.6 million, or 36%. Depreciation and amortization increased 36% to 545.8 million from 533.8 million. Interest expense increased to 530.1 million from 520.8 million, or 45%. Other income (expense) increased from S(.8) million to 52.2 million. Net income was 537.7 million for 1996, compared to 532.0 million in 1995. Income tax expense (based on income before equity in net income loss of, and other income from, nonconsolidated affiliates) in 1996 was S28.4 million, reflecting an annual average effective tax rate of 40%, compared to 520.3 million, or a 41% effective rate in 1995. Equity in net income (loss) of, and other income from, noncon- solidated affiliates decreased to S(5.2) million in 1996 from 52.5 million in 1995. The majority of the increase in net revenue was due to the additional. revenue associated with the radio and television stations acquired in 1996 and the inclusion of a full year of operations for those stations acquired in 199-. These stations are listed in the aforementioned table. Operating expenses rose due to the increase in selling expenses associated with this revenue increase and the additional operating expenses associated with the above acquisitions. The major cause of the increase in depreciation and amortization was the acquisition of the tangible and intangible assets associated with the purchases of the above mentioned stations. The majority of the increase in interest expense was due to an increase in the average amount of debt outstanding which was partially offset by a decrease in the average interest rate from 6.8% in 1995 to 6.3% in 1996. Income tax expense increased because of the increase in earnings. The equity in net income (loss) of and other income from, non- consolidated affiliates resulted from: one, the Company's purchase in May 1995 of a 50% interest in the Australian Radio Network Pry Ltd. (ARN), which owns and operates radio stations and a radio representation company in Australia; two, the purchase in May 1995 of 21.4%, and the purchase in August 1996 of an additional 41.8%, of the outstanding common stock of Heftel Broadcasting Corporation (Heftel), a publicly -traded Spanish -language radio broadcaster in the United States; and three, the purchase in July 1996 of a 33.33% (one-third) interest in the New Zealand Radio Network (NZRN), which owns and operates 52 radio stations in New Zealand. The majority of the decrease in equity in net income (loss) of, and other income from, nonconsolidated affiliates was due to the Company's equity interest in certain employment contract payments, RAD10 Net revenue in 1996 increased 51% to $217.2 million frorr $144.2 million. Operating expenses increased 45% to S126.( million, compared to $87.5 million for 1995. Operating income before depreciation and amortization in 1996 increased tc $90.6 million from 556.7 million, or 60%. Depreciation anc amortization increased 39% to 527.8 million from S20 million Operating income increased 71% to 562.8 million in 1996 frorr $36.7 million in 1995. The majority of the increase in net revenue, operating expense and depreciation and amortization was due to the aforementione, radio and network acquisitions. At December 31, 1996. the radi, segment included 91 stations for which the Co.apam• owned th Federal Communications Commission (FCC) license and 1: st: tions programmed under local marketing or time brokerag agreements, all of which operated in 26 different markets. With the passage of the Telecommunications Act (the A.-t) February 1996, the limit on the maximum number of licens that one company may own in the United States was eliminate and the limit on the number of licenses that one company m own in any given market was changed. This limit depends on t size of the market; in the largest markets, for example. o company may not own more that eight licenses total. with more than five licenses of one service (.&.\I or FM). This silo the Company significant flexibility in future growth in it -a( broadcasting operations. Net revenue in 1996 increased 27% to S 134.6 million fr $105.8 million. Operating expenses in 1996 increased ?' _ $71.7 million compared to 550.0 million for 1995. OFem incbtiie-liefore'depreciation and atnortization in 1996 in.:e. to 562.8 million from $55.8 million, or 13%. Depreciation amortization increased 31% to S18.0 million from 513.8 trail' Operating income increased 7% to 544.8 million in 1996 f $42.1 million in 1995. The majority of the increase in net revenue was due tc inclusion of the aforementioned television acquisitions in and 1995. Operating expenses rose due to the increase in sF expenses associated with these revenue increases, the incl of the aforementioned television acquisitions in 1996 and and the start-up costs of the news departments at four telex stations. The major cause of the increase in depreciatic amortization was the acquisition of tangible and intangible associated with the purchase of the aforementioned tear _ ._..__. t-. . I007 Annual Report MANAGEME'NT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS stations. At December 31, 1996, the television segment included eleven television stations for which the Company owned the FCC license and seven stations, which the Company programmed under time sales or time brokerage agreements, all of which operated in eleven different markets. «with passage of the Act in February 1996, the restrictions on ownership of television stations include a national ownership limit of stations that reach no more than 35% of the total United States television audience and the limit of one license per market for any one broadcaster. This allows the Company greater opportunity to expand into additional markets in television broadcasting. LIQUIDITY AND CAPITAL RESOURCES The major sources of capital for the Company have been cash flow from operarions. advances on its revolving long-term line of credit facility (the credit facility), other borrowings, and funds provided by the initial stock offering in 1984 and subsequent stock offerings in July 1991, October 1993, June 1996, May 1997 and September 1997. Historically, cash flow has exceeded earnings by a significant amount due to high amortization and depreciation expense. Effective April 10, 1997, the Company refinanced the credit facility, increasing the borrowing limit to S 1.75 billion. The cred- it facility converts into a reducing revolving line of credit on the last business day of September 2000, with quarterly repayment of the outstanding principal balance to begin the last business day of September 2000 and continue during the subsequent five year period, with the entire balance to be repaid by the last business day of June 2005. On September 9, 1997, the Company filed a shelf registration statement on Form S-3 covering a combined S 1.5 billion of debt securities, junior subordinated debt securities, preferred stock, common stock, warrants, stock purchase contracts and stock --purchase units (the shelf registration statement).. The shelf registration statement also covers preferred securities which may be issued from time to time by the Company's three Delaware statutory business trusts and guarantees of such preferred securities by the Company. On October 9, 1997 the Company completed an offering of $300 million, 7.25% debentures due October 15, 2027 resulting in net proceeds to the. Company of $294.3 million. Interest on the debentures is payable semiannually on each April 15 and October 15, beginning April 15, 1998. The Company, at its option, may at any time redeem all or any portion of the debentures at a redemption price equal to 100% of the principal amount, or the i sum of the present values of the remaining scheduled payments Of principal and interest thereon discounted to the date of redemption on a semiannual basis at the applicable Treasury Yield plus 25 basis points, plus accrued interest to the date of redemption, whichever is greater. On May 14, 1997, the Company completed an offering of 6,093,790 shares of common stock. On September 12, 1997. the Company completed an offering of eight million shares of common stock. The net proceeds to the Company were approximately $288.4 million and S503.3 million, respectively. During 1997, the Company used the credit facility and cash flow from operations to purchase broadcasting assets (radio stations) totaling S784.2 million, outdoor assets (display faces and license management agreements) totaling S490.3 million and equity interest in American Tower Corporation for S32.5 million. In addition to these acquisitions, the Company loaned S35.4 million to third parties in order to facilitate the purchase of certain broadcast assets and refinanced S417 million of Ions -term debt assumed as a part of the acquisition of Eller. Advances on the credit facility totaled S1,695.4 million. The Company made principal payments on the credit facility totaling S1,197.3 million, including S748.0 million, which represents a portion of the proceeds from the Company's stock offerings in May 1997 and September 1997, and S292.7 million, which represents a portion of the proceeds from the Company's debt offering in October 1997. Through mid February of 1998, the Company purchased the broadcasting assets of certain radio stations in Mobile, AL. Monterey, CA, AIlentown, PA and in Jackson, MS for approxi- mately S24.0 million, S23.2 million, S29.0 million, and S20.0 million, respectively. The credit facility and cash flow from operations provided funding. After giving effect to the above - mentioned transactions and other borrowings of S16.8 million. the Company had S1,328.2 million outstanding under the credit facility, with S384.5 million available for future borrowings. Interest rates on most of the borrowings adjust every 30 days. Based on the S1.215.2 million outstanding debt under the credit facility at December 31, 1997, a 1% increase in interest rates would result in a net after tax charge to the Company's earnings of approximately S7.5 million. In addition, other notes payable _—amounting to $38.5. million were outstanding at December 31. . 1997. The Company also had $24.7 million in unrestricted cash and cash equivalents at December 31, 1997. The Company expects that cash flow from operations in 199S will be sufficient to make all required interest and principal payments on long-term debt. On October 23, 1997 the Company entered into a defutitive agreement to merge with Universal Outdoor Holdings, Inc.. (Universal) an international corporation with over 34,000 display faces in 23 markets. The merger, which is subject to certain clos- ing conditions and regulatory approvals, is structured as an exchange of stock. each share of Universal common stock will be exchanged for .67 shares of the Company's stock. On February F. 3 1997 Annual Report • dear Channel Communications, tnc. • 1 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 1998, the Universal common stock shareholders voted to approve the adoption of the agreement and plan of merger between Universal and the Company. Upon consummation of this merger, the Company will issue approximately 19.3 million shares of its cornmon stock and assume approximately S566 million in long- term debt. The. Company intends to account for this merger as a purchase transaction and expects to consummate this merger during the first half of 1998. On March 5, 1998 the Company announced an agreement with the Board of Directors of More Group, Plc (More Group), an out- door advertising company based in the united Kingdom, regard- ing the terms of a recommended cash offer to acquire all of the issued shares of More Group. The offer values each More Group share at £10.30 or approximately S17.00. The total value of this transaction will be approximately S735.7 million. This transaction is subject to certain regulatory approvals and other closing conditions. If these conditions are met, this transaction is expected to close during 1998. The Company in::nds to fund this transaction through the credit facility and additional funds generated from either equity and'or debt offerings. CAPITAL EXPENDITITRES AND PROGRAM COMl!'IITMENTS Capital expenditures in 1997 increased 57% to S31.0 million from S19.7 million in 1996. The majority of the increase was attributable to the purchase of display structures in the outdoor segment. Capital expenditures made during 1997 were as follows: In millions of dollars Radio Televisiono) Outdoor Land and buildings..... $ 4.6 $ 2.5 $ 1.7 Broadcasting and other equipment........ 4.4 4.5 — Display structures and - - other equipment::.:...- - - - - — — — _ _ •.13.3 $ 9.0 $ 7.0 $ 15.0 (1) Capital expenditures related to the conversion to digital television are expected to begin in the last quarter of 1998 and to be completed by the end of 2002. The Company's television stations and sports networks have entered into programming commitments to purchase the broad- cast rights to various feature films, syndicated shows, sports events and other programming. Total commitments for such programming at December 31, 1997 were S38.8 million. These commitments were not available for broadcast at December 31, 1997, but are expected to become available over the next few years, at which time the commitments will be recorded Most commitments are payable over a period not exceeding five years. The Company anticipates funding any subsequent broadcasting or outdoor capital expenditures and program commitments with the credit facility and cash flow generated from operations. OTHER In 1997, the Company adopted Statement of Financial Accounting Standards No. 128, Earnings Per Share. The adoption of this new accounting standard did not have a material impact on the Company. In 1998, the Company will adopt Statement of Finncial Accounting Standards No. 130, Reporting Comprel:;rsive Income, and Statement of Financial Accounting Standa \o. 131, Disclosures about Segments of an Enterprise ane Re!eted Information, which become effective during the fiscal rear 1998. The adoption of these new accounting standards is not expected to have a material impact on the Company. INFLATION, Inflation has affected the Company's performance in terms of higher costs for wages, salaries and equipment. Alt�ough the exact impact of inflation is indeterminable, the Ce mpany believes it has offset these higher costs by increasing the effective advertising rates of most of its broadcasting static- and outdoor display faces. YEAR 2000 Some of the Company's older computer programs were written i using two digits rather than four to define the applicable year. As a result, those computer programs have time -sensitive so tare that recognizes a date using "00" as the year 1900 rather than the year 2000. This could cause a system failure or miscalcu!ations: causing disruptions of operations, including, among other things,: a temporary inability to process transactions, send invoi:es, or: engage in similar normal business activities. The Company has completed an assessment and will modify on replace portions of its software so that its computer systems VdIll function properly with respect to dates in the year 2000 and thereafter. The Company does not expect that the Year 2000 Issue will materially affect future financial results. -- - -I--- OL ---- I P......nuniea}ions, Inc. • 1997 Annual Report 1997 FINANCIAL REPORT 1VIANAGEI[ENT' S REPORT ON FINANCIAL STATEMENTS The consolidated financial statements and notes related thereto were prepared by and are the responsibility of management. The financial statements and related notes were prepared in conformity with generally accepted accounting principles and include amounts based upon management's best estimates and judgments. It is management's objective to ensure the integrity and objectivity of its financial data through systems of internal controls designed to provide reasonable assurance that all transactions are properly recorded in the Company's books and records, that assets are safeguarded from unauthorized use, and that financial records are reliable to serve as a basis for preparation of financial statements. The financial statements have been audited by our independent auditors, Ernst & Young LLP, to the extent required by generally accepted auditing standards and, accordingly, they have expressed their professional opinion on the financial statements in their report included herein. The Board of Directors meets with the independent auditors and management periodically to satisfy itself that they are properly discharging their responsibilities. The independent auditors have unrestricted access to the Board, without management present, to discuss the results of their audit and the quality of financial reporting and internal accounting controls. Lowry Mays Chairman/Chief Executive Officer Herbert W. Hill, jr. Senior Vice President/ChiefAccounting Officer REPORT OF ERNST & YOUNG LLP We have audited the accompanying consolidated balance sheets of Clear Channel Communications, Inc. and Subsidiaries (the Company) as of December 31, 1997 and 1996, and the related consolidated statements of earnings, changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 1997. These financial satements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statements of Ht:tel Broadcasting Corporation, in which the Company has a :_?io interest and of Australian Radio Network Pty Ltd, in which the Company has a 50% interest, have been audited by other auditors whose reports have been furnished to us; insofar as our opinion on the consolidated financial statements relates to data included for Hertel Broadcasting Corporation for 1997 and for the Australian Radio Network Pry Ltd, for 1996, it is based solely on their reports. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and per- form the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, e%idence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, based on our audits and the reports of other auditors, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Clear Channel Communications, Inc. - and Subsidiaries at December 31, 1997 and 1996, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 1997, in conformity with generally accepted accounting principles. San Antonio, Texas March 11, 1998 1997 Annual Report • Clear Channel Communication$, Inc- CONSOLIDATED BALANCE SHEETS ASSETS In thousands of dollars December 31, 1997 1996 Cash and cash equivalents .............................................. $ 24,657 $ 16,701 Accounts receivable, less allowance of $9,850 in 1997 and $6,067 in 1996 ............................... 155,962 79,182 Film rights - current.......................................................... 14,826 14,188 Income tax receivable...................................................... 3,202 3,093 Total Current Assets 198,647 113,164 TROPERTY, -PLANT 1EQ.!UIPAUNT Land, buildings and Improvements ..................................... 84,118 46,550 Structures and site leases .................................................. 487,857 - Tronsmitter and studio equipment ...................................... 215,755 153,255 Furniture and other equipment .......................................... 46,584 21,164 Construction in progress ................................................... 39,992 4,284 874,306 225,253 Less accumulated depreciation ........................................... 128,022 77,415 746,284 147,838 INTANGIBLE Network affiliation agreements ......................................... 33,727 33,727 Licenses and goodwill..:................................................... 2,175,944 764,233 Covenants not -to -compete ................................................. 24,892 22,992 Other intangible assets ..................................................... 19,593 8,712 2,254,156 829,664 Less accumulated amortization .......................................... 141,066 78,646 _ _ - - " - - - 2,113,090 ...- : _" . 75101$_ Notes receivable.............................................................. 35,373 52,750 Film rights....................................................................... 14,171 13,437 Investments in, and advances to, nonconsolidated affiliates ............................................... 266,691 230,660 Other assets.................................................................... 30,122 10,807 Other investments............................................................ 51,259 5,037 Total Assets $3,455,637 $1,324,711 b • Clear Channel Communications, Inc. • 1 "7 Annual Report CONSOLIDATED BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' EQUITY December 31, 1997 1996 CURRENT LIABILITIES, Accounts payable ................................. $ 11,904 $ 9,865 Accrued interest ............................................................... 9,950 6,272 Accrued expenses ............................................................ 34,489 8,236 Deferred income ............ ................................................... .1,340. 1,300 Current portion of long-term debt ...................................... 13,294 1,479 Current portion of film rights liability .................................. 15,875 16,310 Total Current Liabilities 86,852 43,462 Long-term debt ................................................................ 1,540,421 725,132 Film rights liability ........................................................... 15,551 13,797 Deferred income taxes ...................................................... 10,114 11,283 Deferred income .............................................................. 9,750 11,250 Other long-term liabilities ................................................. 25,378 Minority interest .............................................................. 20,787 6,356 SHAREHOLDERS' EQUITY Preferred Stock, par value $ 1 .00 per share, authorized 2,000,000 shares, no shares issued and outstanding .................................................. Common Stock, par value $.10 per share, authorized 150,000,000 and 100,000,000 shares, issued and outstanding 98,232,893 and 76,992,078 shares in 1997 and 1996, respectively .................................................................. 9,823 7,699 Additional paid -in capital ................................................. 1,541,865 398,622 Retained earnings ............................................................ 169,631 106,055 Other............................................................................. 2,398 1,226 Unrealized gain on investments ......................................... 23,754 - Cost of shores (38,207 in 1997 and 26,878 in 1996) held in treasury ............................................... (687) (171) Total Shareholders' Equity ------ - Total Liabilities And Shareholders' Equity See Notes to Consolidated Financial Statements 1,746,784 513,431 . - .. - ... $3A55,637 $1,3 2A,71 I 1"7 Annual Report - Clear Channel Communications. bw- CONSOLIDATED STATEMENTS OF EARNINGS In thousands of dollars, except per share data Gross revenue .................................................. Less: agency commissions ................................... Net revenue ...................................................... e Operating expenses ........................................... Depreciation and amortization ............................ Operating income before corporate expenses....... Corporate expenses ........................................... Operatingincome .............................................. Interest expense ................................................ Other income (expense) - net .............................. Income before income taxes ............................... Income taxes ..................................................... Income before equity in earnings (loss) of nonconsolidated affiliates .................... Equity in earnings (loss) of nonconsolidated affiliates ................................ Netincome ....................................................... ]PATA • - - Net income per common share: Basic............................................................. Diluted.......................................................... See Notes to Consolidated Financial Statements Year Ended December 31 1997 1996 1995 S 790,178 $ 398,094 $ 283,357 `= 93,110 46,355 ; `33,298 697,068 351,739 250,059 394,404 198,332 y 137,504 114,207 45,790 33,769 188,457 107,617 78,786 20,883 47,116 20,292 $6,961 $ 63,576 30,080 2,230 71,240 28,386 42,854 5,158 $ 37,696 $ 32,014 S .72 $ .51 $ .db $ .67 $ .51 $ ,46 CONSOLIDATED STATEIvtENTS OF CHANGES IN SHAREHOLDERS' EQUITY In thousands of dollars Cumulative,:, Additional Translation UnreoLzed Common Paid -in Retained Ad ustment Gain on Treasury Stock Capital Earnings and Other Investments Stock =='Total Balances at January 1,1995..................... $ 1,723 $ 92,535 $ 36,346 - - $ . (71) $ 130,533 Net income for year .................................. 32,014 = 32,014 Exercise of stock options ............................ 7 627 (100) 53A Currency translation adjustment ................. $ 102 102 Unrealized gains an investments, netof tax .............................................. Stocksplit ................................................. Balances at December 31, 1995 ................ Net income for year .................................. Exercise of stock options ............................ Proceeds from sale of Common Stock......... Currency translation adjustment ................. Reversal of unrealized gains on investments, net of tax ........................... Stocksprat ................................................. Balances at December 31, 1996................ 1,729 (1,729) 3,459 91,433 68,360 102 37,695 5 301 385 310,738 1,124 3,850 (3,850) 7,699 398,622 106,05E 1,226 Net income for year .................................. Proceeds from sale of Common Stock......... 1,409 790,310 Common Stock and stock options issued for business acquisition ................. 665 348,023 Exercise of stock options ............................ 50 4,910 Currency translation adjustment ................. Unrealized gams on immstrnents, net of tax.... .......................................... - - - - - - - - - - 63,576 $ 530 530 530 (171) 163,713 37,695 306 311,123 1,12- (530) (53C) - (171) 513,431 63,576 791,719 6,633 355,321 (397) (516) 4,047 (5,064) (5,0611 --------23,754-------- 23,754 Balances at December 31, 1997................ $ 9,823 $ 1,541,865 $ 169,631 $ 2,398 $ 23,754 $ (687) $ 1,746,761 See Notes to Consolidated Financial Statements 1"7 Annual Report • Cleo► Channel Communications. Inc • In thousands of dollars CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, 1997 1996 1995 Net income........................................................... $ 63,576 $ 37,696 - $ 32,014 Reconciling Items: y Depreciation..................................................... 51,700 19,337 15,380 Amortization of intangibles ............................... 62,507 26,453 18,389 Deferred taxes .................................................. 18,300 5,730 2,953 Amortization of film rights ................................. 16,735 15,038 11,263 Payments on film liabilities ................................ (17,289) (14,627) (10,353) Recognition of deferred income ......................... (1,460) (810) — (Gain) loss on disposal of assets ........................ (1,129) (41) 405 Gain on sale of other investments .:.................... (3,819) — — Equity in [earnings) loss of non - consolidated affiliates .................................... (2,778) 7,933 — Dividends received from nonconsolidated affiliates........................................................ — 7,207 — Decrease minority interest ..............................».. (617) — —. Changes in operating assets and liabilities: Increase accounts receivable .............................. (20,752) Increasedeferred income » ............................... Increase (decrease) accounts payable »» ........ ... (5,271) Increase (decrease) accrued interest ..... ...........» 3,598 Ikrecise (decrease) accrued expenses— - - - . and other liabilities ........................................ 1,628 Increase (decrease) accrued income and other taxes .............................. »..........» (109) Net cash provided by operating activities .............. $ 164,820 (10,606) (11,5a5) 13,360 — 4,489 (372) 5,764 (2331 (320) - —3 831 (8,999) 2,598 $ 107,604 $ 64,330 CONSOLIDATED STATE1v ENTS OF CASH FLOWS - CASH FLO«'S FRONt Iff I.MTSTING ACTIVITIES: Decrease in restricted cash .................................. Decrease (increase) in notes receivable - net.......... Increase in investments in and advances . _ _ _ _ to nonconsolidated affiliates - net ...................... Purchases of investments ...................................... Proceeds from sale of investments ......................... Purchases of property, plant and equipment.......... Proceeds from disposal of assets ........................... Acquisition of broadcasting assets ......................... Acquisition of outdoor assets ......................... Increase in other intangible assets ......................... (Increase) decrease in other -net ............................. Net cash used in investing activities ...................... Year Ended December 31, 1997 1996 1995 — — $ 38,500 $ 17,377 $ (52,750) — (38,317) (163,295) (81,279) (25,101) (3,113) (500) 6,333 — — (30,956) (19,723) (15,110) 2,410 16 383 (784,204) (550,630) (105,136) (490,345) — — (10,881) (2,895) (1,870) 7,891 (4,374) 5,340 (1,345,793) (796,764) (159,672) Proceeds of long-term debt ................................... 2,013,160 718,575 162,600 Payments on long-term debt ................................. (1,614,821) (326,400) (64,800) Payments of current maturities .............................. (5,176) (3,134) (4,419) Proceeds from exercise of stock options ................ 4,047 306 534 Proceeds from issuance of common stock .............. 791,719 311,123 — Net cash provided by financing activities ............... 1,188,929 700,470 93,915 Net increase (decrease) in cash and cash equivalents ................................................ 7,956 11,310 (1,427) Cash and cash equivalents at beginning of year ............... ...... ............. .......»... 16,701 5,391 6,818 Cash and cash equivalents at end of year ................... .................. .....»...... $ 24,657 $ 16,701 $ 5,391 �z See Notes to Consolidated Financial Statements WA �. 1"7 Annual Roper! • Clear Channel communications, Inc • S NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING- POLICIES The consolidated financial statements include the accounts of the Company and its subsidiaries, substantially all of which are wholly -owned. Significant intercompany accounts have been eliminated in consolidation. Investments in nonconsolidated affiliates are accounted for using the equip method of accounting. Certain amounts in prior years have been reclassified to conform to the 1997 presentation. Cash and cash equivalents include all highly liquid investments with an original maturity of three months or less. %lost of the Company's outdoor advertising structures are located on leased land. Land rents are typically paid in advance for periods ranging from one to twelve months. Prepaid land leases are expensed ratably over the related rental term The capitalized costs of film rights are recorded when the license period begins and the film rights are available for use. The rights are amortized based on the number of showings or license period. Unamortized film rights assets are classified as current or non- current based on estimated usage. Amortization of film rights is included in operating expenses. Film rights liabilities are classified as current or noncurrent based on anticipated payments. Property, plant and equipment are stated at cost Depreciation is computed principally by the straight-line method at rates that, in the opinion of management, are adequate to allocate the cost of such assets over their estimated useful lives, which are as follows: Buildings - 10 to 30 years Structures and site leases - 10 to 20 years Transmitter and studio equipment - 7 to 15 years Furniture and other equipment - 5 to 10 years Leasehold improvements - generally life of lease Expenditures for maintenance and repairs are charted t operations as incurred, whereas expenditures for renewal an betterments are capitalized. Intangible assets are stated at cost and are being amortized usin the straight-line method. Excess cost over the fair value of net assets acquired (goodwzl and certain licenses are generally amortized over 25 year Covenants not -to -compete are amortized over the respective lives c the agreements. Network affiliation agreements are amortized ov, 10 years. Leases are amortized over the remaining lease terms. The periods of amortization are evaluated annually to determir whether circumstances warrant revision. Impairment losses on long lived assets (including relat: goodwill) are recognized when indicators- of impairment a present and the estimated future undiscounted cash flows are n sufficient to recover the assets' carnins value. Q1'HER INVESTMENTS: Other investments are composed primarily of equity securitit Tfese securities are classified as mailable -for -sale and cam at fair value based on quoted market prices. The unrealiz gains or losses on these investments, net of tax, are reported a: separate component of shareholders' equity. The avm2e cu method is used to compute the realized gains and losses on sa of equity securities. FINANCIAL INSTRUMENTS: The carrying amounts of financial instruments approximate th fair value. INCOME TAXES: . The Company accounts for income taxes using the liabi method. Under this method, deferred tax assets and liabilities determined based on differences between financial report bases and tax bases of assets and liabilities and are measu using the enacted tax rates expected to apply to taxable incc in the periods in which the deferred tax asset or liabilir, expected to be realized or settled. 26 - dear Channel Communications, Inc. - 1997 Annual It"d NOTES TO CONSOLIDATED FINANCIAL STATEMENTS REVENUE RECOGNI,TI.ON Radio and television broadcast revenue is recognized as adver- tisements or programs are broadcast and is generally billed monthly. Outdoor advertising provides services under the terms of contracts covering periods up to three years, which are generally billed monthly. Revenue for outdoor advertising space rental is recognized ratably over the term of the contract. Revenues from design, production and certain other services are recognized as the services are provided. Payments received in advance of billings are recorded as deferred revenue. Revenue from barter transactions is recognized when advertise- ments are broadcast or outdoor advertising space is utilized. Merchandise or services received are charged to expense when received or used. Periodically, the Company enters into interest rate swap agree- ments to modify the interest characteristics of its outstanding debt. Each interest rate swap agreement is designated with all or a portion of the principal balance and term of a specific debt obligation. These agreements involve the exchange of amounts based on a fixed interest rate for amounts based on variable interest rates over the life of the agreement without an exchange of the notional arnount upon which the pa}ments are based. The cifferential to be paid or received as interest rate change is accrued and recognized as an adjustment to interest expense related to the debt. The fair value of the swap agreements and changes in the fair value as a result of changes in market interest rates are not significant. FOREIGN CURRENCY: FOreien currency translation adjustments, which result from the translation of financial statement information into U.S. dollars for the Company's investments in Australian Radio Network Pry Ltd. (ARN) and New Zealand Radio Network (NZRN), are accounted for as a separate component of shareholders' equity. Transaction gains or losses are recorded as income or expense as incurred. ® e ® t The Company uses the intrinsic value method in accounting for its stock based employee compensation plan. s- T USE -OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. In 1997, the Company adopted Statement of Financial Accounting Standards No. 128, Earnings Per Share. The , adoption of this new accounting standard, -which, required the restatement of all presented periods' earnings per share data, did not have a material impact on the Company" NOTE B - BUSINESS ACQUISITIONS In April of 1997, the Company acquired approximateh" 93% of the outstanding stock of Eller Media, Inc. (Eller). Ellefs operations included approximately 50,000 outdoor advertising display faces in 15 major metropolitan markets. As consideration for the *stock acquired the Company paid cash of approximately S329 million and issued common stock of the Company in the aggregate .glue of approximately S298 million. In addition, the Company issued options on the Company's common stock with an aggregate , alue of approximately S51 million in connection with the assumption of Eller's outstanding stock options. In addition, the Comparty assumed approximately $417 million of Eller's long-term debt, which was refinanced at the closing date using the Company's credit facilin: This acquisition was accounted for as a purchase with resulting goodwill of approximately S655 million. Subsequent to the acquisition of Eller, the Company has acquired approximately 3,000 additional display faces and executed license management agreements for approximately 4,000 display faces, for an aggregate consideration of S 161.7 million. ' . Alwduring 1997, the Company'adquired substantially all of the broadcasting assets of 70 radio stations, including four stations that the Company acquired an 80% interest therein, and six news, sports and agricultural networks in 22 markets. The most significant acquisition was 43 radio stations, six news, sports and agricultural networks and approximately 350 display faces acquired from Parson Communications, Inc. for approximately S629 million during the fourth quarter of 1997. During 1996 the Company acquired substantially all of the broadcasting assets of 49 radio sta- tions, and two television stations in 20 markets. During 1995, the Company acquired substantially all of the broadcasting assets of thm radio stations, including two stations that the Company acquired an 80% interest therein, two television stations and one news and agricultural network in three markets. At December 31. 1997, the Company programmed 17 radio stations and seven 1997 Annual Report • Clear Channel Communications, Inc. • 27 -- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS television stations under a local marketing agreement or a joint sales agreement and does not own the FCC license. The following is a summary of the assets acquired and the con- sideration given for the above stated acquisitions: In thousands of dollars 1997 1996 1995 Property, plant and equipment............ $ 629,207 $ 47,579 $ 15,013 Accounts receivable. 56,028 15,656 3,09S Licenses, goodwill and other assets.......... 1,460,505 488,251 93,716 Total assets acquired 2,145,740 551,486 111,824 Less: Seller financing..... — — (1,400) Liabilities assumed (507,456) (856) (5,288) Minority interest.... (I5,047) — — Common Stock and stock options issued (348,688) — — Cash paid for acquisitions........... $ 1,274,549 $ 550,630 S 105,136 The results of operations for 1997, 1996, and 1995 include the operations of each station, for which the Company purchased the license, from the respective date of acquisition. Unaudited pro forma consolidated results of operations, assuming each of the acquisitions had occurred at January 1, 1995, would have been as follows: Pro Forma (Unaudited) Year Ended December 31, In thousands of dollars, except per share data 1997 1996 1995 Net revenue.......... $ 831,814 $ 670,481 $ 665,015 Net income (loss) .. $ 29,891 $ (22,773) $ (23,930) Net income (loss) per common share -diluted $ .28 $ (.30) $ (.32) RADIO N'T1:T«r In July 1996 the Company purchased a one-third interest i NZRN, which purchased all of the stock of Radio New Zealar Commercial, formerly a government -owned company consistir of 52 radio stations throughout New Zealand. In May of 1995, the Company purchased 21.4% of tl outstanding common stock of Heftel Broadcasting Corporati: (Heftel) a Spanish -language radio broadcaster in the Unit States: In August of 1996, the Comparry purchased an addition 41.8% of the outstanding common stock of Heftel. In January 1997, the Company purchased an interest from the Tichenor fa: ily, which was subsequently exchanged for Heftel corm -non sto at the time of Heftel's merger with Tichenor Media System, Ir (Tichenor), another Spanish -language radio broadcaster with tions in major Hispanic markets in the united States. In Febru-- of 1997, the Company sold 350,000 shares of its Heftel comr stock as a selling shareholder in a secondary stock offer` in which Heftel issued an additional 4.8 milli shares of common stock. The Company recognized a gain approximately S6.2 million as a result of this transaction..41 Heftel issued another 5.6 million shares of its common stock connection with its merger with Tichenor. As a result of th transactions, the Company's interest in Heftel was 3:.3% of total number of shares of Heftel's common stock outstandini December 31, 1997. AMERICAN1,0WER CORPORATIO In July of 1997 the Company purchased a thin, perc (30%) interest in American Tower Corporation (%TC), leading independent domestic owner and operator of wire communication towers. The -pro- forma information above is presented is response The following table summarizes the Company's investment to applicable accouriting iules relating to business'acquisitionS- - these nonconsolidated affiliates: and is not necessarily indicative of the actual results that would have been achieved had each of the businesses been acquired In thousands of dollars at the beginning of 1995, nor is it indicative of future results ARN WZRN Heftel A7C To of operations. AtDecamber31,1996_._ $73,2A2 $29,393 $128,025 — S23C AcWWOim of 30% of ATC. — — — 532.5:0 32 Ad&Ww.) i rm*nw*, nd�. 8,807 9." (3,989) is N®TEU1 C ® INVESTMENTS o°rtn,x}x(bssl 1,323 (d.202) 6,909 27a Ammthnfion of VA IRV° • ° • ' , ® s excess tost — — (1,097) t129i f ttrntslal - In May of 1995, the Company purchased a 50010 interest in ARN, (2,763) 12.3011 an Australian company that owns and operates radio stations, a AtDemmbw31, 1997..... $80,609 $23,83A 5129,Ba8 $3:.1^A $te narrowcast radio broadcast service and a radio representation company in Australia. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS These investments are not consolidated, but are accounted for under the equity method of accounting, whereby the Company records its investments in these entities in the balance sheet as "Investments in, and advances to, nonconsolidated affiliates" The Company's interests in their operations are recorded in the income statement as "Equity in earnings (loss) of nonconsolidat- ed affiliates." Other income derived from transactions with nonconsolidated affiliates consists of interest and management fees which aggregated S6.4 million in 1997, $4.5 million in 1996 and SIA million in 1995, less applicable income taxes of S2.5 million in 1997, S1.7 million in 1996 and SA million in 1995. Equity in the undistributed earnings (loss) included in "Retained earnings" for these investments was S2.1 million and S(2.2) million for December 31, 1997 and 1996, respectively. The following table presents summarized financial information for AR\ and Heftel: Balance sheet information at December 31, 1997: In thousands of dollars ARNm . Heftel Current assets ......... $ 12,633 $ 36,695 Noncurrent assets— • 215,119 475,554 Current liabilities..... 31,263 25,725 Noncurrent liabilities.. 121,705 96,564 Shareholders' equity— 74,784 389,960 Income statement information for period investment held in 1997: Net revenues........... $ 72,116 $ 136,584 Operating expenses 52,077 82,064 Net income ............. 10,749 18,772 (1 J For presentation purposes only, data for ARN has been translated into U.S. dollars at the December 31, 1997 exchange rate and has been presented in conformity with Australian GAAR The Company's equity in net income of ARM which is based on U.S.'GAAP, is not directly comparable to net income reported - by ARM The most significant difference involves the charge against results of operations for the amortization of radio licenses under U.S. GAAP, which is not recorded under Australian GAAP. The Company's share of such amortization for its investment in ARN was $2.9 million for the year ended December 31, 1997. NOTES RECE"I`VABLE: During 1997 and 1996, the Company prodded approximately S35.4 million and S52.8 million respectively, in financing to third parties. The financing provided in 1997 was used to affect the acquisition of radio broadcasting operations. A total of S21.4 million was relieved as consideration for six FCC licenses acquired during January 199S. The remaining S 14 million will be relieved as consideration for three FCC licenses expected to be acquired during the fast half of 199S. The financing provided in 1996 was in the form of loans secured by the assets of certain radio stations. These loans, which were paid in full during 1997, were accoutted for as notes receivable, with the related interest income recorded in other income. OTHER INVESTMENTS - Other investments at December 31, 1997 include marketable equity securities recorded at market value of S62.2 million (cost basis of S23.9 million). During 1997, realized gains of S3.8 million were recorded in "Other income (expense) - net:' At December 31, 1997, unrealized gains, net of tax. of S23.8 million were recorded as a separate component of shareholders' equity. s 1997 Annual Report • Clear Channel Communications, Inc. • 29 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Long-term debt at December 31, 1997 and 1996 consisted of the following: In thousands of dollars December 31, 1997 1996 Debentures, 7.25%, interest payable semi-annually on April 15 and October 15, beginning April 15, 1998, principal to be paid in full on October 15, 2027. n)............................................ $ 300,000 Revolving long-term line of credit facility payable to banks, three years interest only through September 1999, payable quar- terly, rate based upon prime, LIBOR or Fed funds rate, (6.3% at December 31, 1997) at the Company's discretion, principal to be paid in full by June 2005, $534.8 million remains undrown, secured by 100% of the Common Stock of the Company's wholly owned subsidiaries m................ 1,215,221 $ 717,175 Other long-term debt ................ 38,494 9,436 1,553,715 726,611 Less: current portion .................. 13,294 1,479 Total long-term debt .................. $1,540,421 $ 725,132 (1) Proceeds from issuance of debentures totaled S294.3 million, net of fees and initial offering discount. The fees and initial offering discount are being amortized as interest expense over 30 years and at December 31, 1997, were S5.7 million. (2) This facility converts into a reducing revolving line of credit on the last business day of September 2000, with quarterly - - - - - - - - . - --repayment of the principal to begin on that date and continue 0 quarterly through the last business day of June 2005, when the - commitment must be paid in fulL Of the $534.8 million undrawn, S9.6 million is unavailable due to a guarantee and S27.7 million is unavailable due to letters of credit. This leaves S497.5 million available at December 31, 1997 for future borrowings under the credit facility. The Company's current line of credit agreement with banks contains certain covenants that substantially restrict, among other matters, the payment of cash dividends and the pledging of assets. Future maturities of long-term debt at December 31, 1997 are as follows: In thousands of dollars 1998 ».......»......»»..»» $ 13,294 1999 ......»......»..»....... 7,344 2000 ....»..».».............. - 2,185 2001 ».........»..»......».. 2,200 2002 » ............... ........ 88,994 2003 and thereafter .... 1,439,698 $ 1,553,715 The Company currently hedges a portion of its outstandi debt with interest rate s«ap agreements that effectively fix interest at rates. from 5.5%o to 8.5% on S565 million of its cure borrowings. These agreements expire from February 1 to October 2000. The fair value of these agreements at Deceml 31, 1997 and settlements of interest during 1997 were not matey NOTE E m C® MITMENT.1 The Company leases office space, certain broadcasting facilir equipment and the majority of the land occupied by its outd advertisine structures under long-term operating leases. Som; the lease agreements contain renewal options and annual re escalation clauses (generally tied to the consumer price in or a maximum of 5%), as well as provisions for the paymen utilities and maintenance by the Company. As of December 1997, the Company's future minimum rental commitme under noncancelable lease agreements with terms in excel one year, consist of the following: In thousands of dollars 1998........................... S 37,596 1999 ........................... 3 2, 44 8 2000 .......................... 26,714 2001........................... 22,898 2002........................... 18,315 2003 and thereafter .... 71,064 $ 209,035 Rent expense charged to operations for 1991, 1996 and 199: S76.5 million, $53 million and S4.5 million, respectively. The Company's film rights commitments -and related film a are recorded on the earliest date the rights are availabl, telecast. At December 31, 1997, the future paments on film rights liabilities are as follows: In thousands of dollars 1998 ».».»».......».....». $ 15,875 1999- 9,359 2000--......— 5,472 2001 »........»........»..... 676 2002............ .......... »» 44 $ 31,426 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ;..�s:4� F3. Commitments for additional film license agreements in In thousands of dollar the amount of S26.3 million have been executed; however, they 1997 1996 are not included in the amounts above because the programs Deferred Tax Liabilities: were not available for telecast as of December 31, 1997. In Excess tax depreciation........... $ 18,190 $ 7,409 addition, commitments for sports rights have been executed Excess tax amortization........... 13,514 4,868 in the amount.of SS.3 .million for future radio and television Film amortization .................... 809 '- 809 broadcast of spotting events. Basis reduction of acquired assets .................... 2,670 413 Gain on sale of assets ............. 3,175 - � T �T � NOTE F m COl \ T-I GEl`,Tti l..n �S Other...................................... 752 - Total deferred tax liabilities .... 39, 110 13,499 From time to time. claims are made and lawsuits are filed Deferred Tax Assets: against the Company, arising out of the ordinary business of Gain on sale of assets ............. 386 374 the Company. In the opinion of the Company's management, Deferred income ...................... 6,291 - liabilities, if any, arising from these actions are either covered Operating loss carry forwards 11,087 y 1,581 by insurance or adequate reserves, or would not have a material Accrued expenses ................... 8,603 - adverse effect on the financial condition of the Company. Bad debt reserves ................... 1,903 - Other ...................................... 726 261 In various areas in which the Company operates, outdoor Total deferred tax assets.......... 28,996 2,216 advertising is the object of restrictive and, in some cases, prohibitive zoning, and other regulatory provisions, either enact- Net deferred tax liabilities....... $ 10,114 $ 11,283 ed or proposed. 1-he impact to the Company of loss of displays due to governrnenzA action has been somewhat mitigated by federal and state laws mandating compensation for such loss and The reconciliation of income tax computed at the U.S. federal constitutional restraints. statutory tax rates to income tax expense is: to thovsends of dollar G e INCME TAXES 1997 1996 195NOTE Amomet Pac- Mauro Pecos lbnmme P mew Significant components of the provision for income taxes are Income tax expense _ as follows: at stotutory rotes_. $ 38,772 35 % S 26,651 35 e S 17.926 35'. Stole income ragas, net In thousands of dollars of federal tar benefit 1,958 2% 1,403 2: 1,100 2% 1997 1996 1995 Amortization ofsoodwill 7,093 6% 1,493 2% 1,543 4'. Current - federal ... $ 28,321 $ 22,214 $ 16,085 Other - net 1,809 2% 556 1 q 161 Deferred ............... 18,299 5,730 2,953 S 49,632 45% $ 30,103 4C: $ 20,730 41% State ...................» 3,012 2,159 1,692 _ _ Total „................... $ 49,632 $ 30,103 $ 20,730 The Company has certain net operating loss catryforwards amounting to approximately S29.2 million, which expire beginning in the year 2011. Included in current -federal is S2.5 million, S 1.7 million and SA million for 1997, 1996 and 1995, respectively, related to ta=` s on other income frotmnonconsolidated affiliates, which has y NOTE H - CAPITALS STOCK " bren included as a reduction in "Equity in earnings (loss) of non - consolidated affiliates." The remaining $47.1 million, $28.4 mil- s lion and S20.3 million for 1997, 1996 and 1995, respectively, have been reflected as income tax expense. In October 1996 and October 1995, the Board of Directors authorized two -for -one stock splits distributed on December 2, 1996 and Significant components of the Company's deferred tax liabilities November 30, 1995, respectively, to stockholders of record on and assets as of December 31, 1997 and 1996 are as follows: November 13, 1996 and November 15, 1995, respectively. - A total of 38.5 million and 17.3 million shares, respectively, were issued in connection with the 1996 and 1995 stock splits. All share, per share, stock price and stock option amounts shown in the financial statements (except the Consolidated Statement of Changes in Shareholders' Equity) and related footnotes have - been restated to reflect the stock splits. 1"7 Annual Report • Clear Channel Cot-nications, Inc 31 NOTES TO CONSOLIDATED FK%-NCIAL STATEMENTS ELLER PUT/CALL AGREEMENT T6c Company granted to the former Eller stockholders certain dcmand and piggyback registration rights relating to the shares of common stock received by them. The holders of the rcmaining outstanding shares of Eller capital stock, not purchased by the Company, have the right to put such stock to the Company for approximately 1.1 million shares of the Company's common stock until April 10, 2002. From and after April 10, 2004, the Company will have the right to call this minority interest stake in Eller for 1.1 million shares of the Company's common stock in thousands, except per share data 1997 1996 1995 NUMERATOR: Net income ...................... $ 63,576 $ 37,696 $ 32,014 Effect of dilutive securities: -Eller put/call agreement (2,577) — Numerator for net income per common share -diluted.... $ 60,999 $ 37,696 $ 32,014 DENOMINATOR: Weighted average common shares ............... 88,480 73,422 69,092 Effect of dilutive securities: Employee stock options.. 2,220 1,208 978 Eller put/call agreement 815 — — Dilutive potential common shares .............. 3,035 1,208 978 Denominator for net income per common - share -diluted .................. 91,515 74,630 70,070 NET INCOME PER COMMON SHARE. Basic ............... ...........» $ .72 $ .51 $ 46 Diluted..........»...».»....— $ .67 $ .51 $ 46 The Company has granted options to purchase its common stock to employees and directors of the Company and its affiliates under various stock option plans at no less than the fair market value of the uriderlying_stock on the date of grant. These options are granted for a term not exceeding ten years and are forfeited in the event the employee or director terminates his or her employment or relationship with the Company or one of its affiliates. All option plans contain antidilutive provisions that require the adjustment of the number of shares of the Company common stock represented by each option for any stock splits or dividends. The following table presents a summary of the Company's stock options outstanding at and stock option acti iry during the year ended December 31, 1997, 1996 and 1995: In thousands, except per share data Weighted Average Price Options Per Share Options outstanding at January 1, 1997................... 1,638 $ 9.00 Options granted in acquisition,.. 1,468 13.00 Options granted ........................ . . 3Z6 44.00 Options exercised ..... ...... ...... »... (495) 5.00 Options forfeited ...................... (281 34.00 Options outstanding at December 31, 1997at............. 2,929 16.00 Weighted ave,-age fair value of options granted during 1997 35.00 Options outstanding at January 1, 1996........... ..»..... 1,528 6.00 Options granted .........».»........» 233 28.00 Options exercised ...... »........... .. (107) 3.00 Options forfeited ....................... (16) 34.00 Options outstanding at December 31,-,1996 »».........» 1,638 9.00 Weighted overage fair value of options granted during 1996 12.00 Options outstanding at January 1, 1995.....».»...»»» 1,657 5.00 Options granted.....»....».......»» 195 14.00 Options exercised ..».......»..... .... (264) 2.00 Options forfeited .............»........ (60) 8.00 Options outstanding at Decem6er.31, 1995......»»».» 1,528 6.00 Weighted average fair value of options granted during 1995 M (1) Vesting dates range from March 1993 to October 2002, and expiration dotes range from January 1998 to April 2007 at exercise prices ranging from $3.26 to $61.00. There were 1.8 million shares available for future grants under the various option plans at December 31, 1997. f NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The fair value for these options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted -average assumptions for 1997 and 1996: risk -free interest rates of 6.0%; a dividend yield of 0%. The volatility factors of the expected market price of the Company's common stock used was 31% and 34% for 1997 and 1996, respectively, and the weighted -average expected life of the option was five and six years for 1997 and 1996, respectively. Pro forma net income and earnings per share, assuming that the Company had accounted for its employee stock options using the fair value method and amortized such to expense over the options' vesting period is as follows: In thousands, except per share data 1997 1996 Net Income As reported ........................ $ 63,576 $ 37,696 Pro forma ........................... $ 61,739 $ 37,498 Net income per common share Basic As reported ..................... $ .72 $ .51 Pro forma ....................... $ .70 $ .51 Diluted As reported ..................... $ .67 $ 51 Pro forma ...................— $ .67 $ .50 In February 1991, CCTV, a wholly owned subsidiary of the Company. adopted the 1991 Non -Qualified Stock Option Plan which authorized the granting of options to purchase 50,000 shares of CCTV Common Stock. In February 1993, CCTV elected to discontinue the granting of options under this plan. At December 31, 1997, there were 9,500 options outstanding under this plan, with an exercise date of January 1, 1999. NOTE J - SUPPLEMENTAL INFORMATION In thousands of dollars Supplemental Cash Flow: Cash paid for interest Cash paid for taxes Other Income (Expense) — net: Realized gains on sale of marketable securities Gain on disposal of fixed assets Minority interest Interest income from notes receivable 1997 1996 1995 $ 71,399 $ 24,316 $ 20,985 49,741 35,669 18,132 $ 10,019 — — 2,027 — — (848) — — — $ .1,779 — Depreciation and Amortization: Goodwill and licenses $ 49,800 $ 19,700 $ 9,900 Other Current and Long -Term Liabilities: Acquisition accrual Accrued compensation and benefits Outdoor advertising structure takedown accrual Accrued insurance Accrued property tax 1997 1996 $ 15,236 — 12,159 $ 6:080 11,539 — 5,915 — 5,089 — .1 NOTE K - SEGMENT DATA The Company consists of three principal business segments — At December 31, 1997, common shares reserved for future radio broadcasting, television broadcasting and outdoor issuance aggregated approximately six million shares. advertising. At December 31, 1997, the radio segment included 156 stations for which the Company is the licensee and 1" stations operated under lease management or time brokerage NOTEI - EMPLOYEE agreements. These 173 stations operate in 40 markets. The radio PENEFIT PLANS. _ _ _ _ . _ _ _ _ . _ _ _ : _ `Segment also operates eight networks including seven news and ..agriculture -and -one sports network. - - - - - - - - - - - The Company has a 401(k) Savings Plan (Plan) for the purpose Of providing retirement benefits for substantially all employees. Both the employees and the Company make contributions to the Plan. The Company matches a portion of an employee's deferred compensation to a maximum of $9,500 in 1997. Company matched contributions vest to the employees based upon their Years of service to the Company. Contributions to this Plan of $1.2 million, S.7 million and $.5 million were charged to expense for 1997,1996 and 1995, respectively. :tl-- At December 31, 1997, the television segment included 11 television stations for which the Company is the licensee and seven stations operated under lease management or time brokerage agreements. These 18 stations operate in 11 markets. At December 31, 1997, the outdoor segment operated 57.660 advertising display faces including 3,697 displays under license management agreements. These display faces are in 17 markets. Substantially all revenues are from unaffiliated companies. ore to If 1997 Annual Report • Clear Channel Communications, Inc. • 33 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS .� NOTE M - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) In thousands of dollars, except per share data March 31, June 30, September 30, December 31, 1997 1996 1997 1996 1997 1996 1997 1996 Gross revenue_-........._ $ 110,831 $ 70,140 $ 212,200 $ 92,406 $ 209,050 $ 107,189 $ 258,097 $ 128,359 Net revenue ..»... ............ „. $ 98,289 $ 62,208 Operating expenses........... 63,055 38,230 Depreciation and amortization 15,946 8,755 Operating income before corporate expenses......... 19,288 15,223 Corporate expenses .... „..... 2,854 1,674 Operating income ....„........ Interest expense .......... »..... Other income (expense) - net............„ Income before income taxes Income taxes ...................... Income before equity in earnings (loss) of nonconsolidated affiliates Equity in earnings (loss) of nonconsolidated affiliates Netincome ... „......... ».... ». Net income per common shore: m Basic.„..».....».....»........ $ 186,779 $ 81,370 $ 184,108 $ 94,839 $ 227,892 $ 113,322, 103,678 43,762 99,B09 53,409 127,862 62,931 32,724 10,589 31,546 13,022 33,991 . 13,424 50,377 27,019 52,753 28,408 66,039 36,967 5,017 1,804 5,828 2,170 7,184 2,879 16,434 13,549 45,360 25,215 46,925 26,238 58,855 34,088 11,046 5,424 21,268 6,322 19,490 8,033 23,272 10,301 6,259 206 (1,060) (19) 2,442 480 3,938 1,563 11,647 8,331 23,032 18:874 29,877 18,685 39,521 25,350 4,962 2,810 12,345 7,356 14,335 7,261 15,474 10,959 6,685 914 5,521 10,687 11,518 -r 15,542 11,424 24,047 14,391 717 4,407 1,030 3,067. '8,375) (1,773) 1,470 $ 7,599 $ 6,238 $ 15,094 $ 12.548 $ 18,609 $ 3,049 $ 22.274 $ 15,861 $ .10 $ .09 $ .18 $ .18 $ .21 $ .04 $ .23 $ .21 - - - - Diluted ».„.„»».... - $ - - .10 = $- -.09- - $ - - -.16 -$ • • .18 $ .19 $ 04 . $ __.22 $ .20. Stock price: m High ...». .. _ $ 49.6250 $29.5625 $ 63.3750 $ 43.3750 $ 68.7500 $ 45.2500 $ 79.4375 $ 44.5625 Low..... ; 34.2500 20.3750 42.7500 26.7500 58.6250 35.6250 60.0000 30.5000 (1) Adjusted for two -for -one stock split effected in December 1996. The Company's Common Stock is traded on the New York Stock Exchange under the symbol CCU l"7 Annual Report • Clear Channel Communications, InL 0 35, in thousands of dollars, except per share data Gross revenue ............................................... Netrevenue .................................................. Operating expenses ...................................... Depreciation and amortization ...................... Operating income before corporate expenses Corporate expenses ...................................... Operatingincome ......................................... Interest expense ............................................ Other income (expense) - net ......................... Income before income taxes .......................... Incometaxes ................................................. Income before equity in earnings (loss) of nonconsolidated affiliates .............. Equity in earnings (loss) of nonconsolidated affiliates ........................... Netincome ................................................... Net income per common share: m Basic......................................................... Diluted...................................................... Cash dividends per share m ........................... SELECTED FINANCIAL DATA Year ended December 31, 1997 1996 1995 1994 1993 $ 790,178 $ 398,094 $ 283,357 $ 200,695 $ 135,680 $ 697,068 $ 351,739 $ 250,059 $ 178,053 $ 121,118 394,404 198,332 137,504 105,380 78,925 114,207 45,790 33,769 24,669 17,447 188,457 107,617 78,786 48,004 y 24,746 20,883 8,527 7,414 5,100 3,464 167,574 99,090 71,372 42,904 21,282 75,076 30,080 20,752 7,669 5,390 11,579 2,230 (803) 1,161 (196) 104,077 71,240 49,817 36,396 15,696 47,116 28,386 20,292 14,387 6,573 56,961 42,854 29,525 22,009 9,123 6,615 (5,158) 2,489 0 0 $ 63,576 $ 37,696 $ 32,014 $ 22,009 $ 9,123 $ .72 $ .51 $ .46 $ .32 $ .15 $ .67 $ .51 $ 46 $ .32 $ .15 Current assets ............................................... $ 198,647 $ 113,164 $ 70,485 $ 53,945 $ 38,191 Property, plant and equipment - net ............... 746,284 147,838 99,885 85,318 67,750 Total'assets.................................................. 3,455,637 1,324,711 563,011 Al 1,594 227,577 Current liabilities .....................»... 86,852 43,462 36,005 27,679 26,125 Long-term debt, net of current maturities........ 1,540,421 725,132 334,164 238,204 87,815 Shareholders' equity .................................... 1,746,784 513,431 163,713 130,533 98,343 (1) All per share amounts have been adjusted to reflect stock splits effected on the following dates and in the following ratios: Date of Sort Ratio of Sort December 1996 twafor one November 1995 two -for -one February 1994 five -for -four February 1993 five-for4our QUANTITATIVE AND QUALMME DISCLOSURES ABOUT MARKET RISK ` =` _.lit i e o At December 31, 1997, approximately 7S°o of the Company's long-term debt bears interest at variable rates. Accordingly, the Company's net income and after tax cash flow are affected by changes in interest rates. Assuming the current level of borrowings at variable rates and assuming a two percentage point change. in the 1997 average interest rate under these borrowings, it is estimated that the Company's 1997 interest expense would have changed by S24.3 million resulting in a change in the Company's 1997 net income and after tax'cash flow of 515.0 million. In the event of an adverse change in interest rates, management would likely take actions to further mitigate its exposure. However, due to the uncertainty of the actions that would be taken and their possible effects, this analysis assumes no such actions. Further this analysis does not consider the effects of the change in the level of overall economic activity that could exist in such an environment. At December 31, 1997, the Company had several interest rate protection agreements. Originally. Eller Media. Inc. (Eller), put these . aareements in force to mitigate the interest rate risk on its long-term debt. Subsequently, ownership of these agreements transferred to the Company as a result of its acquisition of Eller on April IOth. 1997. The fair value of these agreements are not material at December 31. 1997, are not expected to become material in the near -term. and have not been considered in the above analysis as the Company intends to terminate these agreements during 1993. The Company's eamings are affected by fluctuations in the value of the U.S. dollar as compared to foreign currencies as a result of its investments in Australia and New Zealand. both of which are accounted for under the equity method. It is estimated that the result of a 10* o fluctuation in the value of the dollar relative to theses foreign currencies at December 31. 1997 would change the Company's 1997 net income and after tax cash flow by 50.5 million. The Company's analysis does not consider the implications that such fluctuations could have on the overall economic activity that could exist in such an environment in either the U.S. or the foreign countries or on the results of operations of these foreign entities. EQUITY PRICE RISK: The carrying value of the Company's available -for -sale equity securities is affected by changes in their quoted market prices. It is estimated that a 2Vo change in the market prices of these securities would change their carrying value at December 31, 1997 by 512.4 million. 1997 Annual Report • Clear Channel Communications, Int. • 37 intentionally(This page lae2H I s CORPORATE Lowry Man Chairman Chid Executive Officer Mark P. Mays President Chid Operating Officer Randall Mays Executive Vice President Chid Financial Officer Kathryn Johnson ice President . Communications Herbert W. Hill.jr. SeniorVice President Chief Accounting Officer David V6-dson Nice President Controller Kenneth E.Wvker Senior%ice President for Legal Affairs Demetra Koelling Mice President Corporate Counsel Rick Wolf Nice President Corporate Counsel Houston Lane Nice President Finance Lowry Mays': Chairman Chief Executive Officer Ida Chycinskl Vice President Cash Management Deborah Williams Vice President Corporate Taxation Dr. Ed Cohen Vice President Research' - ' ' ' . Susan Ross Director of Corporate Reporting RADIO James Smith Senior Vice President Operations & Capital Management George L Sosson ScniorVice President Operations -East Stan Webb SeniorVice President Operations -Central Peter Ferrara Senior Vice President Operations -Florida Radio Vice Presidents David Arcara, Albany Jeff Frank,Allentoum Judy Lakin,Austin Walt Tiburski, Cleveland Steve Patterson, Columbia Dave Thomas, CookeviW David Maccjko, Dayton Alan D. Fcld Partner.Aklm, Gump, Strauss, Hauer and Feld Red McCombs Private Investor Theodore H.Strauss Senior Managing Director. Bear, Stearns & Co., Inc. John H.U-dtiams ScniorMce President: Everett Securities, Inc. Bill Strudr M Paso Jim Keating, FkAfyers Skip Fssick, Grand Rapids Howard Nemrnz, Greensboro Carl Hamilton, Houston Ernest jackson,Houston Dan Patrick Houston Kevin Wcbb jackson Linda Byrdjacksonville Joel Day, Florida Keys Mike Shannon, Lancaster/Reading Richard D.Booth, Little Rock Bob Scherer. Louisville Mark Thomas. Louisville Bruce Demps—Ifempbis Sherri Saw•yer,Sfemphis David Ross..tfiami Ronna Woulfe.Sfiami Terr Wood.3filuaukee David Coppock..tfobile Miles Chandler..11onterey Faith Zila,.Veu• Haven Earnest James, New Orleans Janct Arms[cad, A'orfolk John Moen, Oklaboma City Jenny Sue Rhoades, Orlando jimmrvneyard, Panama City Jeanie Hufford,Pensacola Mart Chase. Providence Wayne Jefferson. Raleigh Carl McNeill, Richmond Linda Forem Ricbmond Reggie Jordan. Richmond RobertT. Cohen, San Antonio Elizabeth D. Kocurck; San Antonio A copy of the Comparry's Annual Report on Form I O-K filed with the Securities and Exchange Commission nay be obtained without charge upon written request to: Herbert W. Hilljr Senior Vice President Clear Channel Communications, Inc. P.O. Box 659512 San Antoaio,Texas 78265-9512 Gary James, Springjteld David Manning,TaZabassee Skip Schmidt, Tampa Kevin Malone, Tampa Allen McLaughlin, Tulsa David D'Eugenio, West Palm Beach Radio Networks Vice Presidents Rick Green, Clear Channel Nexus Networks Kevin Moore, Clear Channel Sports Networks OUTDOOR ELLER MEDIA COMP-ALNY Karl Eller, Chairman & CEO Scott Eller, President Tim Donmoyer, CFO/Exec.VP Division Presidents John jacobs,Adanta Ken Blakey, Chicago Bill Platko, Cleveland Gene Leehan,Dallas S. Doak Hoover, El Paso Michelle Costa, Houston Paul Sara,M11waukee Dennis Wazaney,Neu•York Bill Hooper, Northern California Bruce Seidel, Orange County Manny Molina,Pboenix Dan Creel, San Antonio Ignacio Ayala, South Florida Ernst &Young, LLP SanAntonio,Texas Bank of NewYork 101 Barclay Street 12 Floor West New York, NY 10286 George Manyak, Southern Caltfornta S.Wayim Mock,Tampa Bat• TELEVISION Rip Riordan Executive Vice President/ Chief Operating Officer Television Vice Presidents David M. D'Antuono, Albany r John F. Feeser, III, Harrisburg Josh McGraw jacksont-We Chuck Spohn, Little Rock Jack L Peck,bfempbis Steve Spendlove, .ilinneapolis Sharon Moloney 3lobile Deborah J. Sinay, Providence Jack Jacobson, Tuscon Hal Capron, Tulsa Ranch- Pratt, Wichita INTERNATIONAL Richard D. No-. ik President Alarz•Aan Chapman Vice President Business Development . China AUSTRALIA John Hamilton Chief Financial Officer NEW ZEALAND Stephen Barron Chief Executive The annual meeting of shareholders will be held at 200 Concord Plaza on the 1st floor in the Conference Room, San Anto io,Texas, at 11:00 am CDT on Tuesday, May 5,1998 Kiel Eller Chairman & CEO: Ella Mcdia Company 1 0 CLEAR CHANNEL COINIMUNICATIONS, INC. MAILING ADDRESS P.O. BOX 659512 SAN ANTONIO, TEXAS 78265.9512 CORPORATE ADDRESS 200 CONCORD PLAZA SUITE 600 - SAN ANTONIO, TEXAS 78216.69AO 210.822.2828 FACSIMILE 210.822.2299 WORLD WIDE WES ADDRESS WWW.CLEARCHANNEL.COM �F „ •t A t � r+F Pf 1 1 -1'• � .. t.,n�vY r tit_. ,�����tj{1�`S!i ���'s`~� "7�+h'i mrY" i op', C ` N�7�yjrYr �• 1 �: [MRk�� 1��� � �xr a.:• ���t`�e� �" 1 �:k"JET `�' ' v�', > > 1� r +Z. � •nut a 0 (("� � �a 1 "fit � 't fiK'� r y � '�'+1 ,. � ,/4 .Y"t1, i, � ; a r 4w}�iG+. �T ` t �� c �+� u. < �•�+s�n �w�++� 1 9 9 6 ACCOMPLISHMENTS RECORD REVENUES Achieved record revenues of $398 million, an increase of 41 percent over 1995. RECORD OPERATING PROFITS AT THE STATION LEVEL Famed $153 million in station operating income before depreciation and amortization, an increase of 36 percent over 1995. RECORD AFTER TAX CASH FLOW Generated more than $107 million in after tax cash flow, an increase of 51 percent over 1995. RECORD AFTER TAX CASH FLOW PER SHARE Reported after tax cash flow per share of $1.44, adjusted for a two -for -one stock split on December 2, 1996, an increase of 43 percent over 1995. LONG-TERM STOCK PRICE PERFORMANCE Clear Channel's common stock price per share increased 64 percent during 1996 and has compounded at an annual average rate of 82 percent over the last five years and 50 percent over the last decade. INCREASED ACCESS TO CAPITAL Improved financial availability and flexibility by completing a new $1.3 billion revolving credit facility and raising $311 million in equity financing. DOMESTIC RADIO ACQUISITIONS Acquired 35 FM radio stations and 14 AM radio stations in 20 markets. DOMESTIC TELEVISION ACQUISITIONS - Acquired WPRI-TV, the CBS affiliate in Providence, RI and entered into a local marketing agreement With WNAC-TV, the F01' affiliate seeing Providence. SPANISH LANGUAGE BROADCASTING Acquired a temporm controlling interest in Heftel Broadcasting Corporation and subsequently merged Heftel with Tichenor Media System, Inc. The combined company is the largest Spanish language radio broadcaster in the United States. Clear Channel OltT15 32.3 percent of the merged company. INTERNATIONAL ACQUISITIONS Acquired a 331/3 percent interest in the largest radio group in New Zealand. Additionally, Australian Radio Network, of which Clear Channel owns 50 percent, acquired four radio stations: one in Brisbane, one in Western Sydney and two in Adelaide, Australia. LOCAL TELEVISION NEWS EXPANSION Launched extensive local news operations in Memphis, TN; Mobile, AL/Pensacola, FL; Jacksonville, FL and Albany, N-Y. STRENGTHENED MANAGEMENT Strengthened management at all levels and updated the Company's strategic plan. George Sosson, Stan Webb am James Smith were promoted to the position of Senior Vice President in the radio division. In Thousands Except Per Share Amounts 1996 1995 % CHANGE GROSS BROADCASTING REVENUE $398,094 $283,357 41 % STATION OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION 153,407 112,555 36% OPERATING INCOME 99,090 71,372 39% NET INCOME 37,696 - 32,014 18% ` NET INCOME PER SHARE (I) $0.50 $0.46 9% AFTER TAX CASH FLOW(2) 107,318 71 ,140 5 1 % AFTER TAX CASH FLOW PER SHARE (11121 $1 .44 $ 1 .01 43% . a) Adjusted for a two -for -one stock split effective December 2, 1996. (2) Defined as net income before unusual items plus depreciation, intangible amortization (including nonconsolidated affiliates) and deferred taxes. FINANCIAL. H IG HLIGHTS ......................................................... GROSS REVENUE IN MILLIONS $398.1 $283.4 $200.7 E $135.7 s94.5 AFTER TAX CASH FLOW BEFORE UNUSUAL ITEMS IN MILLIONS Qi n7 0 s1 STATION OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION IN I $2 AFTER TAX CASH FLOW PER SHARE BEFORE UNUSUAL ITEMS s LETTER TO THE SHAREHOLDERS ..................................... ..... ...«....................... ................ ..« ; y....«....................................................................................................................................... .««« EAR FELLOW SHAREHOLDERS: NINETEEN NINETY-SIX WAS THE MOST SUCCESSFUL YEAR IN YOUR COMPANY'S HISTORY. FINANCIAL RESULTS AGAIN ACHIEVED RECORD LEVELS IN OUR CORE BUSINESS OF RADIO AND TELEVISION BROADCASTING. AFTER TAX CASH FLOW PER SHARE, THE MOST IMPORTANT MEASURE OF YOUR COMPANY'S FINANCIAL PERFORMANCE, INCREASED 43 PERCENT FROM $1.01 IN 1995 TO $1.44 IN 1996 GROSS REVENUES INCREASED FROM $283.4 MILLION TO $398.1 MILLION FROM 1995 TO 1996, an increase of 41 percent, while station operating income before depreciation and amortization increased from 5112.6 million to 153.4 million over the same period. This stronger financial performance contributed to the increase in your Company's stock price which, after a two -for -one stock split effective December 2. 1996, increased 64 percent during the year. Your Company's stock price has compounded at an annual average rate of 50'k� ever the last decade. making it one of the best performing stocks over that period. Nineteen ninety-six was a year of continued growth and unique opportunities for your Company At the beginning of the year Clear Channel owned, programmed or sold airtime on, 43 radio stations and 16 television stations in 21 markets domestically, as well as a 50 percent interest in the Australian Radio Network and a 2 1 % stake in Heftel Broadcasting Corporation, the largest Spanish language radio broadcaster in the United States. Subsequent to the passage of the Telecommunications Act of 1996, your Company has doubled in size and cat-rently owns, programs or sells air time on 109 radio stations (including pending LOWRY MAYS transactions) and 18 television stations in 32 markets in the United top ten Hispanic markets in the United States. Clear Channel States. Additionally, your Company expanded into New Zealand remains the largest stockholder in the newly -merged company, with a one-third interest in that country's largest radio broadcaster with a 32.3% stake. and added to its operations in Australia. Your Company acquired RADIO a temporary controlling interest in Heftel Broadcasting Corporation Your Company moved swiftly to take advantage of the on August 5, 1996. Subsequently, Heftel Broadcasting Corporation Telecommunications Act of 1996 and made significant investments merged with Tichenor Media System, Inc. to form a Spanish in many of its existing radio markets and entered several new language radio broadcasting company which reaches each of the markets. LETTER TO THE SHAREHOLDERS In Grand Rapids, Michigan, the broadcasting assets of WOOD- AM/FM and WBCT FM were purchased. Subsequently, your Company also closed on the acquisition of WCUZ-AM/FM and WAKX-FM (now WVTI-FM) in that market. brought your company its first radio operations in the markets of Springfield, MA; Winston-Salem/Greensboro, NC; Columbia. SC and Fort Myers/Naples, FL This acquisition created strategic radio clusters in each of these markets. Additional stations were acquired to add to the Company's Your Company has continued its trend of consolidation by presence in Tulsa and Richmond. In Tulsa, your Company entered adding to its position in several of these markets. In New Orleans. into an agreement to acquire KOAS-FM and KQLL-AM/FM. In the addition of KHOM-FM brings your"Companys radio operations Richmond, WTVR-AM/FM was acquired. to 6 Fivis and 2 AMs in the Crescent City. Additionally, a definitive -- In Louisville, your Company broadened its operations by agreement to acquire WKII-AM, WFSN-FM and WOLZ-Fbi in acquiring WWKYAIM, WTFX-FM, WHKW-FM, WKJK-AM and Fort Myers, FL has been executed. WQMF-FM, increasing its ownership to 4 Fivi and 3 AM radio In 1996, Clear Channel also made an equity investment of an 80% interest in Radio Enterprises. Inc., which is headed by Jim Arcara. the former president of the radio stations in that market. In May, Clear Channel closed on its purchase of US Radio, Inc., which owned or programmed 19 radio stations in eight markets, including Milwaukee, WI; Norfolk, VA; Raleigh, NC; Reading, PA; \iemphis, TN; Little Rock, AR; and Houston and El Paso, TX. Your Company has entered into and completed several transactions which will strengthen its position in these markets. In Milwaukee. a definitive agreement was executed to purchase WOKY AM and WIMIIL-FM. In Norfolk, WMYX-F\I and %%`SVY--F\I were added. Your Company has also entered into a definitive agreement to purchase WFXC-FM, WFXK-FM, and WDUR-AM, and acquired WZZU-FM which will enhance its position in Raleigh, NC. In Lancaster, PA, which overlaps the Harrisburg television market and is adjacent to your Company's profitable radio operations in Reading, PA, Clear Channel has entered into a definitive agreement to purchase WLAN-AM/FM. In Memphis, TN, your Company acquired KJMS-FM and KWAM-AM. During the third and fourth quarters of 1996, the acquisition of Radio Equity Partners, L.P. (REP) was completed. REP had operations which overlapped with your Company in New Orleans. Memphis, Oklahoma City and Providence. Additionally; REP division of the American Broadcastin, .Company: and his son, David Arcara. Radio Enterprises, Inc. owns or has entered into agreements to acquire WQBK-A\I/F\I. WQBJ-FM and %X-.\CR-F\I. all of which serve Albam: NZ Y where your Company owns WX.X'A-TV the FOX affiliated television station. TELEVISION During 1996, several long term operating investments were made in the television division. R'PRI-TV, the CBS affiliate in Providence, RI, was added to the Clear Channel family. Concurrent with that acquisition, your Company entered into a local marketing agreement to program and sell advertising time on WNAC-T<: the FOX affiliate in Providence. Since November of 1995, when your Company began its first local news operations in Memphis. Clear Channel has been adding news operations in its other television markets. By the end of 1996 news operations were launched in four markets: Memphis. Mobile/Pensacola, Jacksonville and Albany. In addition, your Company invested significant capital and other resources to LETTER TO THE SHAREHOLDERS upgrade its news franchises in Harrisburg and Providence. In the short term these news department start-ups have resulted in reduced profitability. but it is expected that during 1991 and 1998, each of these operations will become more profitable and contribute meaningfully to your Company's long-term perfonnance. SPANISH LANGUAGE RADIO Over the last twelve months, Clear Channel acted as the catalyst .in the formation of the leading Spanish language radio broadcaster in the United States. In June 1996, your Company extended a tender offer for all of the outstanding stock of Heftel Broadccuting Corporation (Heftel) which it did not already own. Your Company increased its stake in Heftel in August 1996 from 21.4 percent to 63.2 percent through this tender offer and a related stock purchase agreement entered into with former officers of Heftel. Subsequently, Heftel merged with Tichenor Media System, Inc. jichenor) in February 1997 (the Tichenor merger), forming the largest Spanish language radio broadcaster in the United States, with strong franchises in each of the top ten Hispanic markets. Heftel also completed an equity offering of 4.8 million shares of class A common stock (the Heftel offering) and established a S500 million revolving line of credit. Heftel is well positioned with its strong operating foundation and its relatively unlevered balance sheet to "continue to be the -leading Spanish language radio broadcaster in the United States. After the Tichenor merger and the Heftel offering, your Company holds a 32.3% stake in Heftel. Heftel is publicly traded on the NASDAQ under the symbol HBCCA. INTERNATIONAL In 1996, the New Zealand government privatized Radio New Zealand Commercial. The successful acquiror was New Zealand Radio Network (NZRN) a consortium consisting of three equal partners: Clear Channel, Australian Provincial Newspapers Ltd., (which is also your Company's partner in ARN), and lviL-on S Horton, which is the largest publisher in New Zealand. Subsequently. NZRN added to its operations by acquiring Prospect, Ltd. which strengthened NZRNs presence in Auckland. the largest market in New Zealand. NZRN is the dominant radio broadcaster in New Zealand. It owns 52 radio stations in New Zealand and controls approximately 60% of that country's radio revenues. In Australia, your Company added to its investment in the Australian Radio Network (ARN). ARN acquired radio stations 5AD and 5DN in Adelaide, the capital of South Australia, as well as radio station 5BH in Brisbane, the capital of Queensland. ARV also acquired ONE -FM in Western Sydney, which will complement ARN's two FM radio stations in Sydney. ARN also divested two :mall stations in A1buryA klodonga. In total, ARN owns 10 stations all in capital cities of Australia including Sydney. Melbourne, Brisbane, Adelaide. and Canberra. Your Company continues to look for attractive investments in other countries outside of the United States. Management will continue to analyze international investment opportunities in countries where we find higher rates of advertising growth, sound political infrastructure, moderate currency risk and attractive industry dynamics. OUTDOOR ADVERTISING On February 25,1997 your Company entered into a definitive agreement to acquire the stock of Eller Media Company for S 1.15 billion. Eller Media is the oldest, largest and most established outdoor advertising company in the United States, controlling over 50,000 display faces. Founded in 1901 by Walter Foster and George W Meiser, the company's rich history of leadership set standards that would pioneer the modem outdoor advertising industry. Approaching its 100th anniversary, Eller Media Company remains the outdoor advertising industry leader. ON L.ETTE R TO T Today, Eller Media reaches 26 major metropolitan markets throughout the United States and is the nation's largest outdoor advertising provider. Coverage areas include: Los Angeles, San Diego, San Francisco, Sacramento, Chicago, Milwaukee, Cleveland, H E SHAREHOLDERS operating characteristics of the entire broadcasting.industry. STRATEGIC DIRECTION Your Company continues to be committed to its proven corporate strategy: Akron/Canton, Dallas/Ft. Worth, Houston, San Antonio, El Paso, Phoenix, Atlanta, Tampa Bay and Miami/Fort Lauderdale. Eller Media continues to broaden its presence in major metropolitan N DECENTRALIZED, FLEXIBLE, ENTREPRENEURIAL markets with strategic acquisitions and aggressive expansion. BUSINESS UNITS THAT PLACE AN EMPHASIS ON Eller Media operates a wide array of outdoor products [hat --'"SIMPLIFYING STRUCTURES AND PROCEDURES, is unmatched in the out -of -home advertising industry. Its products include traditional outdoor displays, such as large freeway bulletins and 30 -sheet posters, transit shelters, commuter rail panels, buses, point -of -purchase signage and wallscape murals. Eller Media will operate as an autonomous wholly -owned subsidiary of Clear Channel and will continue to be led by its current CEO, Karl Eller. Mr. Eller's outdoor advertising experience spans 4 years. During that time he served as President/CEO of Combined Communications, which was acquired by Gannett. A true entrepreneur, Mr. Eller has also served as President/CEO of Columbia Pictures Communications and Circle K Corporation. The University of Arizona School of Business bears his name. Mr. Eller will join Clear Channel's Board of Directors upon the closing of this acquisition. CAPITAL MARKETS In an effort to continue to be flexible and take advantage of attractive investment opportunities. Clear Channel refinanced its existing Credit Facility and increased the amount available under the line to $1.3 billion. Additionally, your Company issued approximately 7.7 million shares (adjusted for a two -for -one stock split effective December 2,1996) of common stock in June 1996. The net result of these actions gives your Company a strengthened balance sheet with significant acquisition capacity. DEREGULATION The Telecommunications Act of 1996 (the Act) significantly relaxed ownership regulations with regard to both radio and television stations. Your Company continues to believe that the potential consolidation afforded by the Act will improve the ® SOUND CENTRALIZED FINANCIAL MANAGEMENT, ® GROWTH THROUGH INTERNAL EXPANSION OF EXISTING BROADCAST PROPERTIES, SUPPLEMENTED BY STRATEGIC ACQUISITIONS, ■ INTERNALCAPITAL INVESTMENTTO IMPROVE QUALITY AND MARKET LEADERSHIP, INSISTENCE ON ADHERENCE TO THE HIGHEST STANDARDS OF INTEGRITY AND BUSINESS CONDUCT, AND SIGNIFICANT ATTENTION TO LONG-TERM STRATEGIC PLANNING. The future of our core businesses is bright. and the markets we serve continue to improve. Our position in each of these markets remains one of leadership. To the over 3,200 members of our team who made 1996 possible, I personally thank you. To our shareholders. you may continue to expect that our team i_ committed to enhancing the long-term value of your investment. LOWRY MAYS CHAIRMAN AND CEO MARCH 3, 1997 SAN ANTONIO WOAI AM News/I'alk/Sports 1'_00 KHz KQXT FM Adult Contemporary 101.9 MHz KTKR AM Sponstalk/Play-by-play 60 KHz KAJA FM Country 97 3 MH= KSJL FM,++ Urban Adult Contemporary 9 ).1 \IHz HOUSTON KHYS FM - Rhythmic CHR 4S5 MHz KPRC AM News/ralk/Spor[s 950 KHz KSEV AM News/Talk/Sports -10 KHz KMJQ FM Cuban Adult Contemporary 102.1 MHz KBXX FM Urban Contemporary 97.9 MHz KJOJ FM Rhythmic CHR 103.3 MHz KJOJ AM Christian 880 KHz AUSTIN KEYI FM Oldies 103.5 MHz KFON AM Sports 1490 KHz 102.3 NIH= KHFI FM Contemporary Hits 96.7 MH= EL PASO KPRR FM Contemporary Hits 102.1 NIH= KHEY FM Country 96.3 IMH= KHEY AM Countn 690 ICH= NEW HAVEN WKCI FM Contemporary Hits 1013 MH= WAVZ AM Nostalgia 1300 KH= WELT AM News/Talk 960 KH= TULSA KAKC AM News/Sports/Oldies 1300 KHz KMOD FM Adult Oriented Rock 97.5'MHz - - - - KQLL AM++1121 Sports/Talk 1430 KHz KQLL FM++++=+ Oldies 106.1 MHz KOAS FM++++z+ Smooth Jazz 92.1 MHz OKLAHOMA CITY KXXY FM Country 96.1 MHz FA-M i L.Y KEBC AM Sports Talk News/Spanish 1340 KHz KTST FM Country 101.9 MHz KTOK AM News/fall./Sports 1000 KHz KNRX FM New Alternative Rock 94.7 MHz KJYO FM Contemporary Hits 102.7 MHz WKY AM+++ News/Talk 930 KHz LOUISVILLE WHAS AM News/Talk/Sports 840 KHz WAMZ FM Country 97.5 MHz WKJK AM Country 1080 KHz WTFX FM Modern Rock 100.5 MHz WWKY AM Newsaalk/Sports 790 KHz WHKW FM Country 98.9 MHz WQMF FM Classic Rock 95.7 MHz TAMPA WMTX AM Sports/ralk 1040 KHz WMTX FM Hot Adult Contemporary 95.7 MHz TREE WRBQ AM Adult Urban Contemporary 1380 KH= WRBQ FM Country 104.7 MHz- MIAMI WHYI FM Contemporary Hits 100.7 MHz- WBGG FM Classic Rock 105.9 bIH= FT. MYERS/NAPLES WCKT FM Country 107.1 MH= WXRM FM Soft Adult Contemporary 105.5 AIH= 'WK11 AM +• 2� Nostalgia 1070 KH= WFSN FM +••2- Country 100.1 N,[H= WOLZ FM Oldies 95.3 MHz RICHMOND WRVA AM News/Talk/Sports 1140 KHZ WRNL AM Sports 910 KHZ WRVA FM Contemporary Hits 94.5 MHz WRXL FM Adult Oriented Rock 102.1 MHz WTVR FM Soft AC 98.1 MHz WTVR AM Nostalgia 1380 KHz F A M I L Y °FREE NORFOLK WOWI FM Urban Contemporary 102.9 MHz WJCD FM Smooth jazz 105.3 MHz WMYK FM Rhythmic CHR 92.1 MHz WSVY FM Adult Urban Contemporary 107.7 MHz NEW ORLEANS WOOT AM Blues 1280 KHz WQUE FM Urban Contemporary 93.3 MHz WYLD AM Gospel 940 KH= WYLD FM Urban Adult Contemporary 98.5 MHz WNOE FM Country 101.1 MHz KKND FM Alternative Rock 106.7 MHz KHOM FM Contemporary Hits 104.1 MHz CLEVELAND WENZ FM Alternative Rock 107.9 MHz WNCX FM Classic Rock 98.5 MHz WERE AM News/Talk 1300 KHz MEMPHIS WHRK FM Urban Contemporary 97.1 MHz WDIA AM Adult Urban 1070 KHz KJMS FM Urban Adult Contemporary 101.1 MHz KWAM AM Religious 990 KHz WEGR FM Classic Rock 102.7 MHz WREC AM News/Talk 600 KHz WRXQ FM Alternative Rock 93.7 MHz RALEIGH WQOK FM Urban Contemporary 97.5 \[Hz WZZU FM Classic Hits 103.9 MHz WDUR AM,Z) Urban Oldies 1490 KHz WFXC FM,Zr Urban Adult 107.1 MHz WFXK FM,Z, Urban Adult 104.3 MHz GREENSBORO WXRA FM Alternative Rock 94.3 \IHz WTQR FM Country 104.1 MHz WSJS AM News/raIk 600 KHz MILWAUKEE WKKV FM Urban Contemporary 100.7 MHz WMIL FM(2) Country --106:1MHz -- - WOKY AM(2) Adult Standards 920 KHz LITTLE ROCK KDDK FM Country- 100.3 MHz KMJX FM Classic Rock 105.1 MHz READING WRAW AM Oldies 340 KHz WRFY FM Rock Hits 102.5 iNvIH= LANCASTER WLAN AM--Z) Bia Band 1390 KH= WLAN FM,1)12) Hot AC 96.9 MHz GRAND RAPIDS WOOD AM News/Talk/Sports 1300 KH= WOOD FM Adult Contemporary 105.7 MH= WBCT FM Country 93.7 MH= WCUZ AM News/Talk/Sports 1230 KI-ir WCUZ FM Country 101.3 MHz WVTI FM Hot Adult Contemporary 96.1 MHz PROVIDENCE WWBB FM Oldies 101.5 %IHz WWRX Fly Classic Rock 103.7 \1H= SPRINGFIELD WHYN AM News/Ialk/Spons 560 kii WHYN FM Adult Contemporary 93.1 MH= COLU M BIA WWOM FM Crban Contemporary 101.3 \[H= WARQ FM Alternative Rock 93.5 \[H= ALBANY WQBK FMi3) Alternative Rock 103.9 MH= WQBJ FM,3) Alternative Rock 103.5 MH= WQBK AM,3, New-srTalk 1300 kH= WXCR FMt3$ Classic Rock 102.3 \IH= M Joint Sales Agreement or local Marketing Agreement rZ r Pending Acquisition 43 � Pending acquisition by Radio Eme v ses. fr.,.. IF41 wj=' MOBILE WPNII-TV • NBC 15 TUCSON K, TU-TV • UPN 18 JACKSONVILLE %%*-k%\'S-TV • FOX 30 \t 1 E\ =TV • UPN 47t 1 Faoenie .an Francisco �cramento Angeles =an Diego LOUISVILLE Kentucky News Network RICHMOND Virginia Radio Network PENSACOLA «'JTC-T\' • L-PN 44(1) . TU LSA KTFO-I1' • L:PN 41- KOKI-TV • FOX 23 MEMPHIS \VL\IT--T\' • UPN 30(1 WPT1=T\' • ABC 24 13 W.I.- . Tampa Bay %liami/Ft. Lauderdale • - Atlanta OKLAHOMA CITY Oklahoma News Network Clear Channel Sports FAMILY. TREE WICHITA KSAS-TV • FOX 24 LITTLE ROCK KLRT-TV • FOX 16 KASN-TV • UPN 38(1, ALBANY \\'?iXA-TV • FOX 23 • Chicago to Cleveland Akron/Canton COLLEGE STATION Clear Channel Sports SAN ANGELO Voice of Southwest Agriculture Radio Network HARRISBURG WHP-T\- • CBS 21 WLYH-TV • UPN 15- 1 L MINNEAPOLIS WFTC-T\ . FOX 29 PROVIDENCE WPRI-T\' • CBS 12 \VNAC-TV • FOX 64t+) Dallas/R.\\ orth El Paso Houston San Antonio XTIMMIMEW \Milwaukee DES MOINES Clear Channel Sports Ir . 01. 2WfS FM Sydney, NSW Hits and Memories 101.7 MHz MIX106 FM Sydney, NSW Soft Adult Contemporary 106.5 MHz ONE FM Western Sydney NS%V Adult Contemporary 101.1 MHz GOLD104 FM Melbourne, Victoria Gold 104.3 MHz TTFM FM Melbourne, Victoria Hot Adult Contemporary 101.1 MHz AUSTRALIAN R A ®I ® N E T W O R K 4KQ AM Brisbane, Queensland Adult Contemporary 693 KHz 4BH AM Brisbane, Queensland Soft Adult Contemporary 882 KHz 106.3 FM Canberra Adult Contemporan 106.3 MHz SAD FM Adelaide, SA Adult Contemporan 105.3 MHz SDN AM Adelaide, SA Newsrralk 1323 KHz $19,986 P°-- "$1,804 $1,000 '. PERFORMANCE GRAPH t indexes. Clear Channel Communications. Inc. cornuared to marke 74 - t -AW 41 CLEAR CH NNEL COMMUNICATIONS BROADCAST AvIERAGE <J� _S&P 500- s _ NEW ZEALeAND RADIO NETWORK COMMUNITY RADIO ZM & CLASSIC ROCK RADIO WAITOMO 91 ZM Te Kuid Wellington 90.9 & 93.5FM 1170AM 91 zM RADIO FORESTLAND Christchurch 91.3FM Tokoroa 93ZM 1413AM Whangarei 93.1FM KING COUNTRY RADIO 96ZM Taumarunui Dunedin 95.8FM 1512AM 98.3FM LAKELAND FM Rototu Taupo CLASSIC ROCK 96.7FM 96FM Napier GISBORNE'S CLASSIC ROCK 2ZG 945AM Q91FM 90.6 HAWERA'S-- 2ZH 1557AM NEWSTALK ZB RIVER CITY FM AUCKLAND WANGA14UI 1080AM & 89.417M ® ` 89.6FM WELLINGTON RADIO WAIRARAPA 1035AM Masterton 846AM C H RISTCH U RCH 1098Ab1 RADIO MARLBOROUGH WAIKATO Blenheim 1296AM 97FM, 1539AM & 1584ANI BAY OF PLENTY RADIO SCENICLAND 1008AM Greymouth HAWKES BAY ` 90.5FM, 12 7 8 AINI Grejy,mouth 93.1 & 91.1F\I TARANAKI Reefton 97.3F\I 1033A`I & 1557A\I Westport 90.9F%I MANAWATU Buller 1287AM 927AM SOUTH WESTLAND AS H B U RTO N'S DUNEDIN 1044AM 3ZE 92.5FM &873ANNI SOUTHLAND RADIO WAITAKI 864AM Oamaru 1395AM CLASSIC HITS FM 97FM Auckland 9OFM Wellington 98FM Christchurch 1026A M Radio Northland 98.6FM Hamilton's ZHFXI 95BOP FM Bay of Plenty 97FM Rotorua 89FM Bay City Radio, Hawkes Bay 96FM Taranald 97.8 FM bfana-,V= 9OFM Nelson 99FM Timaru 89FM Dunedin 88.8 FM Invercargill's ZiFM PRO FORMA DOMESTIC REVENUE BY MARKET* WIC 0ALBANY ,10 1.80 TUCSON _ _ 2.2% AUSTIN 2.20/. L MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ___ ......................... ................................................................................. ».... _................ ................ .................................... ...... .-...... .............................. ................... COMPARISON OF 1996 VS 1995 Net broadcasting revenue in 1996 increased 41% to 51.739,000 from $250,059,000. Station operating ex-.�onses in 1996 increased 44% to $198,332,000, com- =a-cd to $137,504.000 for 1995. Station operating income _..,,re depreciation and amortization in 1996 increased to ::53.407,000 from S112,555,000, or 36%. Depreciation _-a amortization increased 36% to $45,790,000 from _' ;.769,000. Interest expense increased to $30.080,000 :n S20,751,000. or 45%. Other income (expense) :_rcased from $(803.000) to $2,230,000. Net income was -; 7.696,000 for 1996, compared to $32,014,000 in 1995. ....ome tax expense (based on income before equity in net. :.")Me/loss of, and other income from, nonconsolidated :fates) in 1996 was $28,386,000, reflecting an average __ :,ual effective tax rate of 40%, compared to $20.292,000, : - a 41 % effective rate in 1995. Equity in net income (loss) _. and other income from, nonconsolidated affiliates .-;:reased to $(5,158,000) in 1996 from $2,489,000 in -'5. The majority of the increase in net broadcasting -::-enue was due to the additional revenue associated with .; radio and television stations acquired in 1996 and the -.:.usion of a full' year of operations for those stations -:attired in 1995. These stations are as follows: Acquisition Date Network or Station Location 1996 Acquisitions February 14, 1996 «'OOD-AM/FM, WBCT-FM Grand Rapids, MI %lay 13, 1996 US Radio, Inc. (USR) IC-IE1-AM/FM, KPRR-FM El Paso, TX KJOJ-FM, KJOJ-AM (2) Houston, TX IOIJX-FM, KDDK-FM Little Rock, AR WHRK-FM, WDL4-AM Memphis, TN WKKV-FM Milwaukee, W1 «7CD-FM, WOWI-FM Norfolk, VA %t'QOK-FM, WZZU-FM(2) Raleigh, NC WRAW--AM, WRFY FM Reading, PA %lay 31, 1996 WENZ-FM (3) Cleveland, OH June 1, 1996 WTVR-AMfFM Richmond, VA July 1, 1996 WPRI-TV, Providence, RI WNAC-TV (1) Providence, RI August 1, 1996 IMI-FM (3), KFON-AM (3) Austin, TX August 1, 1996 Radio Equity Partners, LP (REP) XV.ARQ-FM, WWDM-FM Columbia, SC %VXRM-FM, WCKT FM Ft. Myers/Naples, FL %VSJS-AM, WTQR-FM, WXRA-FM Greensboro, NC WNOE-FM, KLJZ-FM (now KKND-FM) Ncw Orlcans, La WHYN-AM/FM Springfield, hLV KXXYAM (now KEBC-AM), KXXY-FM, KTSTFM Oklahoma City; OK October 1, 1996 WHKW AM (nowWKJK-AM), WWKYANl. WTFX-FM Louisville, Kt' WSVY FM (2) (3) Norfolk, VA October 11, 1996 • WCUZ-AM/FM Grand Rapids, hll \ovember 27. 1996 WMYK-FM (2) (3) Norfolk, VA December 3, 1996 Radio Equity Partners, LP (REP) VVRXQ-FM, WEGR-FM, WREC-AM Memphis, TN WWBB-FM, VAVRX-FM Providence, RI December 16. 1996 KJbiS-FM, KWAM-AM Memphis, TN January 1. 1993 1995 Acquisitions KMJQ-FM Houston, TX January 1. 1995 KPRC-AM (4), KSEV AM (4) Houston, TX October 17. 1995 Voice of Southwest Agriculture San Angelo, TX October 31. 1995 %V-HP-TV, WLY'H-TV (1) Harrisburg, PA 11` The Company programs this station under a local marketing agreemen: and does not own the FCC license. (_` The Company did not acquire the license for this station but assur..e.: the local marketing agreement (LMA) or joint sales agreement (JSA a. broker for this station upon acquisition of the former broker (either USR or REP. as the case may be), which originally executed such agreement. Tine Company subsequently closed the acquisition of this station and now owns the FCC license. (3 i The Company did not own the license for this station prior to this dare. but did program the station under an LMA or participate in a JSA prior to this date. The results of operations of this station have been included in prior period(s). The Company acquired the license of this station on the date indicated, thus, no longer programs this station under an LMA or par- ticipates in a JSA (4) The Company acquired an 80% interest in this station. Station operating expenses rose due to the increase in selling expenses associated with this revenue increase and the additional operating expenses associated with the above acqui- sitions. The major cause of the increase in depreciation and amortization was the acquisition of the tangible and intangible assets associated with the purchases of the above mentioned stations. The majority of the increase in interest expense was due to an increase in the average amount of debt outstanding, which was partially offset by a decrease in the average interest rate from 6.8% in 1995 to 6.3% in 1996. Income tax expense increased because of the increase in earnings. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ................................................................................................................................................._............._.................._...................................................................... The equity in net income (loss) of, ,and other income from, nonconsolidated affiliates resulted from: one, the Company's purchase in May 1995 of a 50% interest in the Australian Radio Network Pty Ltd. (ARN), which owns and operates radio stations and a radio representation com- pany in Australia; two, the purchase in May 1995 of 21.4%, and the purchase in August 1996 of an additional 41.8%, of the outstanding common stock of Heftel Broadcasting Corporation (Heftel), a publicly -traded Spanish -language radio broadcaster in the United States; and three, the pur- chase in July 1996 of a 33.33% (one-third) interest in the New Zealand Radio Network (NZRN) -which owns and operates 52 radio stations in New Zealand. The majority of the decrease in equity in net income (loss) of, and other income from, nonconsolidated affiliates was due to the Company's equity interest in certain employment contract payments, severance costs, and other write-offs totaling $44,731,000 related to Heftel's reorganization. All of these equity investments are included in results of operations for the Company's radio segment. RADIO Net broadcasting revenue in 1996 increased 51% to 5217,189,000 from $144,244,000. Station operating expenses increased 45% to $126,628,000, compared to S87.531,000 for 1993. Station operating income before depreciation and amortization in 1996 increased to S90,561,000 from $56,713,000, or 60%. Depreciation and amortization increased 39% to $27,756,000 from S19.981,000. Station operating income increased 71% to $62,805,000 in 1996 from $36,732,000 in 1995. The majority of the increase in net broadcasting revenue, station operating income, station operating expens- es and depreciation and amortization was due to the afore- mentioned radio and network acquisitions. At December 31, 1996, the radio segment included 91 stations for which the Company owned the Federal Communications Commission (FCC) license and 15 stations programmed under local marketing or time brokerage agreements, all of which operated in 26 different markets. With the passage of the Telecommunications Act (the Act) in February 1996, the limit on the maximum num- ber of licenses that one company may own in the United States was eliminated, and the limit on the number of licens- es that one company may own in any given market was changed. This limit depends on the size of the market; in the largest markets, for example, one company may not own more than eight licenses total, with no more than five licens- es of one service (AM or FM). This allows the Company sig- nificant flexibility in future growth in its radio broadcasting operations. Net broadcasting revenue in 1996 increased 27% to $134,550,000 from $105,815,000. Station operating expenses in 1996 increased 43% to $71,704,000 compared to $49,973,000 for 1995. Station operating income before depreciation and amortization in 1996 increased to $62,846,000 from $55,842,000, or 13%. Depreciation and amortization increased 31% to $18,034,000 from $13,788,000. Station operating income increased 7% to $44,812,000 in 1996 from $42,054,000 in 1995. The majority of the increase in net broadcasting rev- enue was due to the inclusion of the aforementioned televi- sion acquisitions in 1996 and 1995. Station operating . expenses rose due to the increase in selling expenses associ-' ated with these revenue increases, the inclusion of the afore- mentioned television acquisitions in 1996 and 1995, and the start-up costs of the news departments at four television sta- tions. The major cause of the increase in depreciation and amortization was the acquisition of tangible and intangible assets associated with the purchase of the aforementioned television stations. At December 31. 1996. the television sea ment included eleven television stations for which the Company owned the FCC license and seven stations which the Company programmed under time sales or time brokerage agreements, all of which operated in eleven different markets. With passage of the Act in February 1996, the restrictions on owmership of television stations include a national ownership limit of stations that reach no more than 35% of the total United States television audience and the limit of one license per market for any one broadcaster. This allows the Company greater opportunity to expand into additional markets in television broadcasting. COMPARISON OF 1995 VS. 1994 Net broadcasting revenue in 1995 increased 40% to $250,059,000 from $178.053,000 in 1994. Station operat- ing expenses in 1995 increased 30`Yo to $137,504,000 com- pared to $105,380,000 for 1994. Station operating income before depreciation and amortization in 1995 increased to $112,555,000 from $72,673,000. or 55%. Depreciation and amortization increased 37% to S33.769.000 in 1995 from $24,669,000 in 1994. Interest expense increased to $20,751,000 ,from $7,669,000 or 171 6. Net income was $32,014,000 in 1995 compared to $22.009,000 for 1994. Equity in net income of, and other income from, nonconsol- idated affiliates w.is $2,439,000 in 1995. Income tax expense (based on income before equity in net income/loss of, and other income from, nonconsolidated affiliates) in MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 1995 was $20,292,000, reflecting an annual effective rate of 41%. compared to $14,387,000, or a 40% effective rate in 1994. The majority of the increase in net broadcasting revenue was due to the additional revenue associated with radio and television stations acquired in 1995 and the inclu- sion of a full year of operations for those stations acquired in 1994. These stations are as follows: Acquisition Date Network or Station Location 1995 Acquisitions January 1, 1995 KMJQ-FM Houston, TX January 1, 1995 KPRC-Ah1(2), KSEV-AM (2) Houston, TX October 17, 1995 Voice of Southwest Agriculture San Angelo. TX October31, 1995 WHP-TV, MrMi-TV (1) Harrisburg. RA 1994 Acquisitions January 14, 1994 KEBC-FM (now KNRX-FM) Oklahoma City. OK February 28, 1994 KLRTTV, KASN-TV(1) Little Rock, AR March 9, 1994 WAXY --FM (now \XBGG-Fbt) Miami/Ft. Lauderdale, FL Au wt 15, 1994 KBM-FM Houston. TX October 12, 1994 4 Metroplex Communications, Inc. Miami/Ft. «IM-FM Lauderdale, FL WbtTX-A,WFM Tampa. FL WERE -AM, NVNCX-FM Cleveland, OH November 1, 1994 al'ENZ-FM (3) Cleveland, OH December 1, 1994 WXXA-TV Albany, N1 (1) The Company programs this station under a time sales or time broker- age agreement and does not own the FCC license. (2) The Company acquired an 80% interest in this station. (3) The Company programmed this station under a local marketing agree- ment but subsequently closed the acquisition of this station and now ours the FCC license. Station operating expenses rose due to the increase in selling expenses associated with this revenue increase and the additional operating expenses associated with the above acquisitions. The major cause of the increase in depreciation and amortization was the acquisition of the tangible and intangible assets associated with the purchases of the above mentioned stations. The majority of the increase in interest expense was due to an increase in the average amount of debt outstanding and an increase in the average interest rate from 5.7% in 1994 to 6.8% in 1995. The equity in net income of, and other income from, nonconsolidated affiliates resulted from the Companys purchase of a 50% interest in the Australian Radio Network Pty Ltd (ARN), which owns and operates radio stations and a radio representation company in Australia and the purchase of 21.4% of the common stock of Heftel *Broadcasting . Corporation (Heftel), -a Spanish -lan- guage radio broadcaster in the United States. Income tax expense was up due to the increase in earnings. Net income rose for the above stated reasons, but . was partially offset by a $2,315,000, or 45%, increase in cor- porate related expenses warranted by the increase in current business activity. RADIO Net broadcasting revenue in 1995 increased 50% to $144,244,000 from $95,863,000 in 1994. Station operating expenses increased 36% to $87,531,000 in 1995, compared to $64,149,000 for 1994. Station operating income before depreciation and amortization in 1995 increased to $56,713,000 from $31,714,000, or 79%. Depreciation and amortization increased 62% to $19,981,000 from S12,324,000. Station operating income increased from S 19,396,000 in 1994 to $36,732,000 in 1995, or 89%. The majority of the increase in net broadcasting revenue, station operating expenses and depreciation and amortization was due to the aforementioned radio and net- work acquisitions. The increase in station operating income was primarily due to the inclusion of the operating results of the above stated acquisitions. At December 31, 1995 the radio segment included 36 stations for which the Company owned the Federal Communications Commission (FCC) license and seven stations programmed under local market- ing or time brokerage agreements. These 43 stations operat- ed in 12 different markets. The radio segment also operated five networks. Net broadcasting revenue in 1995 increased 29% to $105,815,000 from $82,190,000. Station operating expens- es in 1995 increased 21% to $49,973,000 compared to $41,232,000 for 1994. Station operating income before depreciation and amortization in 1995 increased to $55,842,000 from $40,958,000, or 36%. Depreciation and amortization increased 12% to $13,788,000 from $12,344,000. Station operating income increased to $42,054,000 from $28,614,000, or 47%. The majority of the increase in net broadcasting revenue was due to the increase in advertising revenue resulting from improved ratings at the majority of the televi- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ..._ .................................... ....................................... ............................ .__............... _....................................................................................................... ........ ......... lion stations, the additional revenue associated with the tele- vision stations acquired in 1995, and the inclusion of a full year of operations for those stations acquired in 1994. Station operating expenses rose due to the increase in selling expenses associated with these revenue increases, the expenses associated with the start up of two news depart- ments, and the operating expenses of the newly acquired sta- tions. The major cause of the increase in depreciation and amortization was the acquisition of the tangible and intangi- ble assets associated with the purchase of the aforemen- tioned stations. At December 31, 1995, the television seo ment included ten television stations for -which the Company owned the license and six stations which were programmed under local marketing or time brokerage agreements. These 16 stations operated in ten different markets. LIQUIDITY AND CAPITAL RESOURCES The major sources of capital for the Company his- torically have been cash flows from operations, advances on its revolving long-term line of credit facility (the credit facil- ity), and funds provided by an initial common stock offerin; in 1984 and subsequent stock offerings in July 1991. October 1993 and June 1996. Historically, cash flows have exceeded earnings by a significant amount due to the high amortization and depreciation associated with the broadcart- ing.industry: Effective August 1, 1996 the Company refinanced its credit facility, increasing the total funds available to $1.04 billion. The credit facility converts into a reducing revolving line of credit on the last business day of September 1999. with quarterly repayment of the outstanding principal bal- ance to begin the last business day of December 1999 and continue during the subsequent five year period, with the entire balance to be repaid by the last business day of September 2004. During 1996, the Company used the credit facility to finance the purchase of broadcasting assets (radio and television stations) and an equity interest in the broadcasting operations of NZRN and an additional equity interest in ARN and Heftel. In addition to these acquisitions, the Company loaned 552,750,000 to third parties in order to facilitate the purchase of certain broadcasting assets. The loans have been recorded as notes receivable, while the inter- est income related to these loans is being recorded in other income. The Company received repayment of $40,000,000 in February 1997 and expects to receive payment of the remainder of these notes receivable during the first half of 1997. Advances on the credit facility related to such pur- chases of broadcasting assets, equity investments and loans totaled $718,575,000. The Company made principal pay- ments on the credit facility totaling $326,400,000, including $287,400,000 which represents a portion of the proceeds from the Company's stock offering in June 1996. Based on the weighted average balance of debt out- standing under the line of credit for the year ended December 31, 1996, a 1% increase in interest rates would have resulted in a net after tax charge to the Company's earnings of approx- imately $3,179,000. In addition, other notes payable amounting to $9,436,000 were outstanding at December 31. 1996. The Company also had $16,701,000 in unrestric:ed cash and cash equivalents at December 31, 1996. During the first quarter of 1997, the Company pur- chased the broadcasting assets of radio stations WQNIF-F%l in Louisville, Kentucky for approximately $13,5001000: NAIZZU-FM in Raleigh, North Carolina for approxima?e7V S7,500,000; KHOM-FM in New Orleans, Louisiana or approximately $6,854,000; and KJOJ-AM in Houston, Texas for approximately $984,000, using the credit facility a::c cash flows from operations to fund the acquisitions. After giving effect to transactions and pay-donr:_ subsequent to December 31, 1996, the Company c.-:.: S705,825,000 outstanding under the credit facility, S316,450,000 available for future borrowings. Interest r_:e; on most of these borrowings adjust every 30 days. In January 1997, the Company announced tha: entered into two separate definitive agreements to acgl-l::e \%TSN-FM, WKII-AM and WOLZ-FNl in Ft. Myers, Floc.; for approximately $11,000,000 and WMIL-FM and AEI in Milwaukee, Wisconsin for appcoxima:J.K S40,000,000. Both of these transactions are subject to fe al regulatory regulatory approvals. In February 1997 the Company entered into definitive agreement to purchase the stock of Eller Ale_'.: Corporation (Eller), a privately -held corporation, subjec::o federal regulatory approvals, for total consideration approximately $1.15 billion, consisting of a combination approximately $750 million in cash and the issuance to E ;: shareholders of approximately $400 million in Company's common stock. The Company anticipates financing the cash po- tion of the Eller acquisition and the other pending acqus Lions with its line of credit facility and is currently negod t:- ing to expand its credit facility to $1.75 billion. T e Company believes it will be successful in expanding t e credit facility. After giving effect to transactions and pa% - downs subsequent to December 31, 1996 and these pen&. transactions, the Company would have $1,506,825,000 cr, standing under this newly -expanded line of credit. �\ $9,575,000 unavailable due to guarantees and $8,150.00' unavailable due to letters of credit, the total amount availa-E.el under this newly -expanded line of credit would $225,450,000. a. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Company expects that cash flow from opera- tions in 1997 will be sufficient to make all required interest and principal payments on long-term debt. CAPITAL EXPENDITURES AND PROGRAM COMMITMENTS Capital expenditures of $19,723,000 during 1996 included $2,728,000 and $4,719,000 for land and buildings and broadcasting and other equipment, respectively, for the radio segment and S3,171,000 and $9,105,000 for land and uildings, and broadcasting and other equipment, respec- tively; for the television segment. The majority of the increase in capital outlays in 1996 was attributable to the start-up of n;�vs departments at four of the stations in the television sej raent and the purchase of land and buildings in the radio a::d television segments. Capital outlays are expected to increase very little in 10,97, reflective only of the growth in the number of radio and television stations. As the operator of 18 television sta- tions and various sports networks, the Company will con- tinue to enter into programming commitments to purchase .ne broadcast rights to various feature films, syndicated :.ous, sports events and other programming. Total commit- ments for such programming at December 31, 1996 were :'_9,027,000. These commitments were not available for teievision or radio broadcast at December 31, 1996 but are expected to become available over the next few years, at which time the commitments will be recorded. Most com- mitments will then be payable over a period not exceeding five years. The Company- anticipates paying for these program commitments and capital outlays with cash generated from operations. It anticipates funding any subsequent radio and television station acquisitions with the credit facility and cash flows generated from operations. OTHER On January 1, 1996, the Company adopted Statement of Financial Accounting Standards No. 121, Accounting for the Impairment of Long -Lived Assets and for Long -Lived Assets to Be Disposed Of. The adoption of this new accounting standard did not have a material impact on the Company. The Company has elected to follow Accounting Principles Board Opinion No. 25 Accounting for Stock Issued to Employees (APB 25) and related Interpretations in account- ing for its employee stock options. Under APB 25, because the exercise price of the Company's employee stock options equals the market price of the underlying stock on the date of grant, no compensation expense is recognized. For purposes of pro forma disclosures required by statement of Financial Accounting Standards No. 123. -Accounting for Stock Based Compensation, the estimated. fair value of the options is amortized to expense over the option; vesting period. The effect of this pro forma adjustment is not material to the financial statements. Inflation has affected the Company's,performance in terms of higher costs for wages, salaries and equipment. Although the exact impact of inflation is indeterminable. the Company believes it has offset these higher costs by increa:- in; the effective advertising rates of most of its radio and television stations. 996 FINANCIAL REPORT MANAGEMENT'S REPORT ON REPORT OF ERNST & YOUNG LLP, FINANCIAL STATEMENTS INDEPENDENT AUDITORS The consolidated financial statements and notes related thereto were prepared by and are the responsibility of management. The consolidated financial statements and related notes were prepared in conformity with generally accepted. accounting principles and include amounts based upon management's best estimates and judgments. It is management's objective to ensure the integrity and objectivity of its financial data through systems of inter- nal controls designed to provide reasonable assurance that all _ transactions are properly recorded in the Company's books and records, that assets are safeguarded from unauthorized use, and that financial records are reliable to serve as a basis for preparation of financial statements. The financial statements have been audited by our independent auditors, Ernst & Young LLP, to the extent required by generally accepted auditing standards and, accordingly, they have expressed their professional opinion on the financial statements in their report included herein. The Board of Directors meets with the independent auditors and management periodically to satisfy itself that they are properly discharging their responsibilities. The independent auditors have unrestricted access to the Board, without management present, to discuss the results of their audit and the quality of financial reporting and internal accounting controls. Lowry Mays Chairman/Chief Executive Officer We have audited the accompanying consolidated balance sheets of Clear Channel Communications, Inc. and subsidiaries as of December 31, 1996 and 1995, and the related consolidated statements of earnings, changes in shareholders' equity and cash flows for each of the three .years in the period ended December 31, 1996. These finan- cial statements are the responsibility of the Company's man- agement. Our responsibility is to express an opinion on these financial statements based on our audits. The financial state- ments of the Australian Radio Network Pty Ltd, a corpora- tion in which the Company has a 50% interest, have been audited by other auditors whose report has been furnished to us; insofar as our opinion on the consolidated financial statements relates to data included for the Australian Radio Network Pty Ltd, it is based solely on their report. We conducted our audits in accordance with gener- ally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall finan- cial statement presentation. We believe that our audits pro- vide a reasonable basis for our opinion. In our opinion, based on our audits and the report of other auditors, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Clear Channel Communications, Inc. and subsidiaries at December 31. 1996 and 1995, and the consolidated results of their opera- tions and their cash flows for each of the three years in the period ended December 31, 1996, in conformity with gen- erally accepted accounting principles. A,/V� !"11(r1� Herbert W. Hill, Jr. Senior Vice President/ Chief Accounting Officer a LLP San Antonio, Texas February 17, 1997, except for Note K. as to which the date is February 25, 1997 CONSOLIDATED BALANCE SHEETS ............................................................................ _................... ................................................................................................. .... ................ ............... ................... ASSETS Cash and cash equivalents ......................................... Accounts receivable, less allowance of $6,066,794 in 1996 and $3,809,529 in 1995 .......................... Film rights - current ................................................... Income tax receivable ................................................. Total Current Assets Land........................................................................... Buildings.................................................................... Transmitter and studio equipment ............................. Furniture and other equipment .................................. Leasehold improvements ............................................ Construction in progress ............................................ Less accumulated depreciation ................................... Network affiliation agreements ................................... Licenses and goodwill ................................................ Covenants not -to -compete ......................................... Other intangible assets ............................................... Less accumulated amortization .................................. Notes receivable......................................................... Filmrights................................................................I Equity investments in, and advances to, nonconsolidated affiliates ...................................... Otherassets ................................................................ Other investments ...................................................... Total Assets See Notes to Consolidated Financial Statements December 31, 1996 1995 $ 16,700,752 $ 5,391,104 79,182,580 14,187,640 3,092,693 113,163,665 12,235,273 28,992,708 153,254,927 21,163,668 5,322,365 4,284,361 225,253,302 77,415,597 147,837,705 33,726,904 764,233,345 22,991,932 8,711,977 829,664,158 78,645,708 751,018,450 52,750,000 13,436,589 230,659,734 10,807,633 5,037,310 $ 1,324,711,086 52,920,450 12,173,527 70,485,081 7,821,899 17,068,026 109,517,279 13,996,9$7 4,560,289 5,079,864 158,044,344 58,159,152 99,885,192 23,422,904 286,406,955 22,871,932 5,816,987 338,518,778 52,192,327 2186,326,451 15,968,502 81,911,343 7,021,531 1,412,704 $ 563,010,804 CONSOLIDATED BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' EQUITY December 31, 1996 1995 Accounts payable....................................................... $ 9,864,401 $ 5,314,716 Accrued interest......................................................... 6,272,193 508,271 Accrued expenses....................................................... 8,235,966 7,760,002 Income and other taxes .............................................. — 3,906,580 Deferred income.....................................................:.._— -- 1,300,000 — Current portion of long-term debt ............................. 1,479,327 3,406,297 Current portion of film rights liability ........................ 16,309,787 13,109,024 I Total Current Liabilities 43,461,674 36,004,890 y Long-term debt .......................................................... 725,131,618 334,163,729 Film rights liability..................................................... 13,797,015 17,143,812 Deferred income taxes ................................................ 11,283,303 5,552,835 Deferred income......................................................... 11,250,000 — Minority interest........................................................ 6,356,885 6,432,903 e e Preferred Stock, par value $1.00 per share, authorized 2,000,000 shares, no shares issued and outstanding .......................................... — — Common Stock, par value $.10 per share, authorized 100,000,000 shares, issued and outstanding 76,992,078 and 34,592,695 shares in 1996 and 1995, respectively ................... 7,699,208 3.459,269 Additional paid -in capital ........................................... 398,621,825 91.433,138 Retained earnings....................................................... 106,054,793 68.359,190 Other......................................................................... 1,225,763 632.036 Cost of shares (26,878 in 1996 and 13,439 in 1995) held in treasury ....................................... (170,998) (170.998) Total Shareholders' Equity 513,430,591 163.712.635 Total Liabilities And Shareholders' Equity $ 1,324,711,086 $ 563.010,804 See Notes to Consolidated Financial Statements Gross broadcasting revenue ....................................... Less agency- commissions ........................................... Net broadcasting revenue ..................................... Station operating expenses :........................................ Depreciation and amortizzation................................... Station operating income .................................... Corporate general and administrative expenses .......................................... Operating income ................................................ Interest expense......................................................... Other income (expense) -net ....................................... Income before income taxes ....................................... Income taxes.............................................................. Income before equity in net income (loss) of, and other income from, nonconsolidated affiliates .................................... Equity in net income (loss) of, and other income from, nonconsolidated affiliates .............................. Netincome........................................................... CONSOLIDATED STATEMENTS OF EARNINGS Year Ended December 31, 1996 1995 1994 $ 398,094,474 $ 283,357,052 46,355,620 33,297,672 351,738,854 250,059,380 198,331,650 137,504,473 45,789,764 33,768,882 107,617,440 78,786,025 $ 200,694,908 22,642,326 178,052,582 105,380,066 74 66R_940 4S,003,976 8,527,310 7,414,457 5,099,834 99,090,130 71,371,568 42,904,142 30,080,410 20,751,454 7,669,000 2,230.025 (803,280) 1.161,456 71,239,745 49,816,834 36,396,598 28,386,416 20,291,922 14,387,102 42,853,329 29,524,912 (5,157,726) 2,488,703 22,009,496 S 37,695,603 $ 32,013,615 S 22,009,496 Net income per common share ................................ S .50 $ .46 S .32 Weighted average common and common share equivalents outstanding .......................................... See Notes to Consolidated Financial Statements 74,648,777 70,200,796 69,325,812 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ' Additional Common paid -in Retained Treasury Stock capital earnings Other stock Total Balances at January 1, 1994 ........ S 1.715,076 S 84,635,233 S 14,336.079 — ($2,343,642) S 98,342,746 Net income for year ..................... 22,009,496 22,009,496 Exercise of stock options ............. 1,168 2,805,735 (27,440) 2,779,463 Issuance of 119,048 shares - of Common Stock to purchase a ' minority interest ...................... 1.891,968 1,609,532 3,501,500 Lssuance of 117,975 shares of Common Stock for a business acquisition ................................. 6,797 3,202,203 691.000 3,900,000 Balances at December 31, 1994.. 1,723,041 92,333,139 36,345,375 — (70,550) 130,533,205 Net income for year ..................... 32,013,615 32',013,615 Exercise of stock options ............. 7,209 62 7,0 18 (100128) 333,779 Currency translation adjustment. S 102,292 102,292 Unrealized holding gains on . marketable securities ............... 529,744 329,744 Stock split ................................... 1,729,019 (1.729.019) — Balances at December 31. 1993... 3,439,269 91.433,138 68,339.190 632.036 (170.998i 163,712,635 Net income for year ..................... 37.693,603 37.695,603 Exercise of stock options ............. 5,334 300.571 305,905 t Proceeds from issuance of 3,830.000 shares of Common Stock ....................... 385,000 310.737.721 311.122,721 Currency translation adjustment. 1,123.471 1.123.471 Reversal of unrealized holding gains on marketable securities .................................. (529,744) 1529,744) Mock split ................................... 3.849,605 13.3-9.605) — Balances at December 31, 1996.. S 7,699,208 S 3a8.621.825 S 106.054.793 S 1.225.763 (S170.9981 S 313.430.591 See Notes to Consolidated Financial Statements NET CASH FLC.VS PRQVIDED B,Y OPERATING ACTIVITIES CASH • o Decrease (increase) in restricted cash ......................... ,Increase) in notes receivable ..................................... ,Increase) in equity investments in, and advances to, nonconsolidated affiliates -net ................................ Purchases of property, plant and equipment .............. Proceeds from disposal of property, plant andequipment...................................................... Proceeds from disposal of broadcasting assets............ acquisition of broadcasting assets .............................. Purchase of minority interest .............:........................ ,Increase) decrease in other investments .................... Increase) in other intangible assets ............................ ;Increase) decrease in other -net .................................. Net cash flows used in investing activities ................. Proceeds from long term debt .................................... Payments on long term debt ...................................... Payments of current maturities ................................. E.tercise of stock options ............................................ Proceeds from issuance of common stock .................. Net cash flows provided by financing activities......... Net increase (decrease) in cash .................................. Cash at beginning of year .......................................... Cash at end of year .................................................... ;ee Votes to Consolidated Financial Statements CONSOLIDATED STATEMENTS OF CASH FLOWS . Year Ended December 31, 1996 1995 1994 $ 107,603,742 $ 64,330,005 $ 41,131,501 — 38,500,000 (38,500,000) (52,750,000) — — (163,294,851) (81,279,307) — (19,723,031) (15,109,896) (5,747,166) 15,508 33,053 130,047 — 350,000 2,025,000 (550,629,549) (105,135,886) (127,427,369) — — (4,000,000) (3,624,606) 4,149,136 (4,135,718) (2,894,990) (1,870,183) (1,160,990) (3,862,120) 691,503 (1.094,531) (796,763,639) (159,671,580) (119,910,727) 718,575,000 162,600,000 165,100,000 (326,400,000) (64,800,000) (25,800,000) (3,134,081) (4,418,695) (1,999,492) 305,905 533,779 2,779,463 311,122,721 — — 700,469,545 93,915,084 140,079,971 11,309,648 (1,426,491) 1,300,745 5,391,104 6,817,595 5,516,850 $----16,700,752-- $ 5,391,104 $ 6,817,595 SCHEDULE RECONCILING NET INCOME TO NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES Netincome................................................................ Depreciation............................................................... Amortization of intangibles ........................................ Deferred taxes............................................................ Amortization of film rights ......................................... Payments on film liabilities ............................ ............ : Recognition of deferred income ................................. (Gain) loss on disposal of assets ................................. Equity in net loss of nonconsolidated affiliates........... Dividends received from nonconsolidated affiliates.... Changes in operating assets and. liabilities: (Increase) accounts receivable .................................... Increase deferred income ........................................... Increase (decrease) accounts payable ......................... Increase (decrease) accrued interest ........................... Increase (decrease) accrued expenses ......................... Increase (decrease) in income and other taxes payable.................................................................. Net cash flows provided by operating activities See Notes to Consolidate4 Financial Statements Year Ended December 31, $ 37,695,603 $ 32,013,615 $ 22,009,496 19,336,390 15,379,826 12,639,104 26,453,374 18,389,056 12,029,436 5,730,468 2,953,612 188,059 15,038,223 11,262,835 9,857,530 (14,627�200) (10,353,200) (10,037,749) (810,000) — — (41,402) 404,994 (598,863) 7,933,364 — — 7,206,823 — — (10,606,199) (11,544,653) (8,408,540) 13,360,000 — — 4,489,685 (372,119) 1.151,467 5,763,922 (233,219) 485,721 (320,036) 3,831,264 (721,855) (8,999,273) 2,597,994 2.037,695 - S 107,603,742 $ 64,330,005 $=1.131,501 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS _........................................................................... .................... _.............. ................... ..... _._............................... .................................................... ....... _... ............... NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements include the accounts of the Company and its subsidiaries, substantially all of which are wholly -owned. Significant intercompany accounts have been eliminated in consolidation. Investments in nonconsolidated affiliates are accounted for under the equity method of accounting. Certain amounts in prior years have been reclassified to conform to the 1996 presentation. Property. plant and equipment are stated at cost. Depreciation is computed principally by the straight-line method at rates which, in the opinion of management, are adequate to allocate the cost of such assets over their esti- mated useful lives, which are as follows: Buildings - 10 to 30 years Transmitter and studio equipment - 7 to 15 years Furniture and other equipment - 5 to 10 years Leasehold improvements - generally life of lease Expenditures for maintenance and repairs are charged to operations as incurred, whereas expenditures for renewal and betterments are capitalized. Intangible assets are stated at cost and are being amortized by the straight-line method. For the years prior to 1993, excess cost over the fair value of net assets acquired (goodwill) and certain Iicenses were amortized between 25 and 40 years. All goodwill and licenses acquired subsequent to 1992 are being amortized over 25 years. Amortization of goodwill and licenses was $19,719,763, $9,918,585 and $4,481,660 in 1996, 1995 and 1994, respectively. Covenants not -to -compete are amortized over the respective lives of the agreements. Network affiliation agree- ments are being amortized over 10 years. The periods of amortization are evaluated annually to determine whether circumstances warrant revision. The capitalized costs of film rights are recorded when the license period begins and the film rights are avail- able for use. The rights are amortized based on the number of showings or license periods. Unamortized film rights assets are classified as cur- rent or noncurrent based on estimated usage. Amortization of film rights is included in station operating expenses. Film rights liabilities are classified as current or noncurrent based on anticipated payments. GARTER'-TRANSAGTICWS: Revenue from barter transactions is recognised when advertisements are broadcast, and merchandise or ser- vices received are charged to expense when received or used. The Company. accounts for income taxes using Statement of Financial Accounting Standards No. 109. Accounting for Income Taxes (SFAS 109). Under SFAS 109, income taxes for financial reporting purposes are determined using the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting bases and tax bases of assets and liabilities and are measured using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be realized or settled. Foreign currency translation adjustments, which result from the translation of financial statement information into U.S. dollars for the Company's investments in Australian Radio Network Pty Ltd. (ARN) and New Zealand Radio Network (NZRN), are accounted for as a separate component of shareholders' equity. Transaction gains or loss - _.es_ between_the_Company and ARN and NZRN are recorded as income or expense as incurred. See Note I for further dis- cussion of the Company's equity investments in ARN and NZRN. Net translation gains resulting from the translation of ARN and NZRN financial statement information from Australian dollars and New Zealand dollars, respectively, to U.S. dollars in the reconciliation of Australian and New Zealand accounting principles to accounting principles gen- erally accepted in the United States (U.S. GAAP) amounted to $1,123,471 in 1996 and $102,292 in 1995. Net transac- tion gains amounted to $362,030 in 1996 and $101,319 in 1995. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Effective January 1, 1996 the Company adopted Statement of Financial Accounting Standards No. 123, Accounting for Stock Based Compensation and elected to con- tinue to use the intrinsic value method in accounting for its stock based employee compensation plan. Effective January 1, 1996 the Company. adopted__ Statement of Financial Accounting Standard No. 121, Accounting for the Impairment of Long -Lived Assets and for Long -Lived Assets to be Disposed Of. Impairment losses are rec- ognized when indicators of impairment are present and the estimated future undiscounted cash flows are not sufficient to recover the assets' carrying value or estimated fair value, less costs to sell. The effect of adopting this Statement was not material to the consolidated financial statements. Cash and cash equivalents include all highly liquid investments with an original maturity of three months or Iess. The carrying amounts of the Company's financial in-struments approximate their fair value. The preparation of financial statements in confor- mity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accom- panying notes. Actual results could differ from those esti- mates. NOTE B - LONG-TERM DEBT Long-term debt at December 31, 1996 and 1995 consisted of the following: December 31, 1996 1995 Revolving long-term line of credit facility payable to banks, three years interest only through September 1999 payable quarterly rate based upon prime, LIBOR or Fed funds rate at the Company's discretion (5.9% at December 31, 1996). prin- cipal to be paid in full by September 2004, $322,825,000 remains un-drawn (1) S 717.175.000 S 325,000,000 Other long-term debt 9,435,943 12,370.026 726,610.945 337,570.026 Less: current portion 1,479.327 3,406.297 Total loner term debt S 725,131,618 S 334,163.729 t1l Principal repayment on the credit facility begins the last business da% f December 1999 and continues quarterly through the last business day o September 2004, when the commitment must be paid in full. Of the S322.825.000 undrawn, S9,575,000 is unavailable due to a guarantee as described in Note I while S8,150.000 is unavailable due to letters of credit. This leaves S305,100,000 available at December 31. 1996 for future bor- rowings under the credit facility. The Company's current line of credit facility kith banks contains certain covenants which restrict, amon ether matters, the payment of cash dividends and pledgitt of assets. Future maturities of long-term debt at December 31. 1996 are as follows: 1997.................. $ 1,479.327 1998 .................. 1,477,280 1999 .................. 24,008, 713 2000 .................. 81,082,188 2001.................. 125,305,625 2002 and thereafter 493,057,812 $ 726.610,945 Interest paid in 1996, 1995 and 1994 amounted it., $24,316,488, $20,984,673 and $7,183,27 9, respectively: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE C - COMMITMENTS NOTE D - STOCK SPLITS AND DIVIDENDS The Company leases office space and certain broad- casting facilities and equipment under long-term operating leases. Some of the lease agreements contain renewal options and annual rental escalation clauses (generally tied to the consumer price index or a maximum of 5%), as well as pro- visions for the payment of utilities and maintenance by the Company. As of December 31, 1996, the Company's future minimum rental commitments, under noncancelable lease agreements with terns in excess of one year, consist of the following: 1997.................. S 4,457,032 1998 ................ 3,965,511 1999 .................. 3,174,907 2000 .................. 2,482,172 2001.................. 1,832,649 2002 and thereafter 8,313,543 $ 24,225,814 Rent expense charged to operations for 1996, 1995 and 1994 was S5.298,894, 54,510,413 and $3,272,870, respectively: The Company's film rights commitments and relat- ed film assets are recorded on the earliest date the rights are available for telecast. At December 31, 1996, the future pay- ments on these film rights liabilities are as follows: 1997.................. S 16,309,787 1998 .................. 8,254,674 1999 .................. 4,823,603 2000 .................. 712,377 2001.................. 6,361 2002 and thereafter $ 30,106,802 Commitments for additional film license agree- ments in the amount of S 17,467,855 have been executed. However, they are not included in the amounts above because the programs were not available for telecast as of December 31, 1996. In addition, commitments for sports rights have been executed in the amount of $1,559,634 for future radio and television broadcast of sporting events. In October 1996 and 1995, the Board of Directors authorized two -for -one stock splits distributed on December 2, 1996 and November 30, 1995, respectively, to stockhold- ers of record on November 13, 1996 and November 15, 1995, respectively. In February 1994, the Board of Directors autho- rized a five -for -four stock split in the form of 25 percent stock di-%zdend distributed on February 22, 1994 to stock- holders of record on February 15, 1994. A total of 38,496,039; 17,290,188 and 6,860,300 shares, respectively, were issued in connection with the 1996, 1995 and 1994 stock splits. Fractional shares were paid in cash based on the closing price on the record date. All share, per share, stock price and stock option amounts shown in the financial statements (except the balance sheet and statement of changes in shareholders' equity) and relat- ed footnotes have been restated to reflect the stock splits. NOTE E - BUSINESS ACQUISITIONS AND DISPOSITIONS During 1996, 1995 and 1994, the Company acquired substantially all the broadcasting assets of the fol- lowing radio stations, television stations and news and agri- cultural networks, which were all principally funded by bor- rowings under the credit facility. Acquisition Date Network or Station Location 1996 Acquisitions February 14, 1996 WOOD-AM/FM, WBCT FM Grand Rapids, Nil May 15, 1996 US Radio, Inc. (USR) KHEY AWFM, KPRR-FM El Paso, TX KJOJ-FM, KJOJ-AM (4) Houston, TX KMJX-FM, KDDK-FM Little Rock, AR 1VHRK-FM, WDIA-AM Memphis, Ib — WKKV FM Milwaukee, WI WJCD-FM, WOWI-FM Norfolk, VA WQOK-FM, WZZU-FM (4) Raleigh, NC WRAW-AM, WRFY FM Reading, PA May 31, 1996 WENZ-Five (5) Cleveland, OH June 1, 1996 WTVR-AM/FM Richmond, VA July 1, 1996 WPRI-TV Providence, RI WNAC-TV (3) Providence, RI August 1, 1996 KEPI -FM (5). KFON-AM (5) Austin, TX August 1, 1996 Radio Equity Partners, LP (REP) WARQ-FM, WWDM-FM Columbia, SC WXRM-FM, WCKT FM Ft. Myers/Naples, FL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ... ._.................... _............................................................................... .... ._........................................................ ............................. .-................ _.... ..... ..-................. WSJS-AM, WTQR-FM, WXRA-FM Greensboro, NC WNOE-FM, KQZ-FM (now KKND-FM) New Orleans, LA WHYN-AM/FM Springfield, MA KXXY-AM (now KEBC-AM) KM —FM, KTST FM Oklahoma City, OK October 1, 1996 WHKW AM (now WKJK-AM), WWKYAM, WTFX-FM Louisville, KY WSVY-FM (4) (5) Norfolk, VA October 11, 1996 WCUZ-AM/FM Grand Rapids, M I November 27, 1996 WMYK-FM (4) (5) Norfolk, VA December 3, 1996 Radio. Equity Partners, LP (REP) WRXQ-FM, WEGR-FM, WREC-AM Memphis, TN WWBB-FM, WWRX-FM Providence, RI December 16, 1996 KJMS-FM, KWAM-AM Memphis, TN 1995 Acquisitions January 1, 1995 KMJQ-FM January 1. 1995 KPRC-AM (2)/KSEV-AM (2) October 17, 1995 Voice of Southwest Agriculture - October 31, 1993 WHP-TV, WLYH-TV (3) quently closed the acquisition of this station and now owns the applicable license. (5) The Company did not own the license for this station prior to this date. but did program the station under an LMA or JSA prior to this date. The results of operations of this station have been included in prior period(s). The Company acquired the license of this station on the date indicated. thus, no longer programs this station under an LMA or JSA. The following is a summary of the assets acquired and the consideration given for the above stated acquisitions: 1996 1993 1994 Property, plant and equipment ............. S 47,579,227 S 15,012.828 $ 26,385.571 Accounts receivable .. 15,635,931 3,093,279 5,334,47E Licenses, goodwill and other assets............ 488,250,391 93,716,385 113,444.182 Total assets acquired. 551,485,549 111,824.492 145,164.229 Less: Houston, TX Seller financing......... — (1,400.000) — Houston, TX Liabilities assumed.... (856.000) (5,288.606) (13,836.860N Common Stock issued — — (3,900.0001 San Angelo, TX Harrisburg, PA ' 1994 Acquisitions January 14, 1994 KEBC-FM (now KNRX-FM) Oklahoma City, OK February 28. 1994 KLRT-TV/KASN-TV(3) Little Rock. AR %larch 9, 1994 WAXY FM (now WBGG-FM) Miami/Ft. Lauderdale. FL August 15. 1994 KBM-FM Houston, TX l Ctober 12. 1994 Metroplex Communications, Inc. (1) WHYI-FM Miami/Ft. Lauderdale. FL WMTX-AM/FM Tampa, FL WERE -AM, WNCX-FM Cleveland. OH November 1, 1994 WENZ-FM Cleveland. OH December 1. 1994 WXXA-TV Albany, NY t1) The Company issued 135,950 shares of Common Stock and released 100.000 shares of treasury stock in conjunction with this purchase. t') The Company acquired an 80% interest in this station. (3) The Company programs this station under a local marketing agreement or joint sales agreement and does not own the FCC license. t4) The Company did not acquire the license for this station but assurr-ed the local marketing agreement (LMA) or joint sales agreement USA) as bro- ker for this station upon acquisition from the former broker (either USR or REP), which originally executed such agreement. The Company subse- Cash paid on acquisitions............ S 550.629,549 S105,,135.886 _S127,427.369 The results of operations for 1996, 1995, and 1994 include the operations of each station from the respective date of acquisition. Assuming each of the acquisitions ham occurred at January 1, 1994, unaudited pro forma consoli- dated results of operations would have been as follows: Pro Forma (Unaudited) Year Ended December 31, in thousands (except per acre amounts) 1996 1995 1994 Net broadcasting revenue .................. S 410,318 S 365.293 S 325.521 Net income ............... $ 45,636 S 50.055 S 26.182 Net income per share ................ S .61 S .71 $ .3$ The pro forma information above is presented it: response to applicable accounting rules relating to business acquisitions and is not necessarily indicative of the actual results that would have'been achieved had each of the sta- tions been acquired at the beginning of 1994, nor is it indica- tive of future results of operations. ............................................................................. ................. .._............ NOTES TO CONSOLIDATED FINANCIAL STATEMENTS .................... _........... _............ ................ ............. ............................ The Company did not sell any radio or television 1996 1995 stations during 1996. In January 1995. the Company sold KYOK-AM in Houston, TX and K-HYS-FM in Port Arthur, TX Deferred tax liabilities: and KALO-AM in Beaumont/Port Arthur, TX for Tax over book $2,475,000, $5,000,000 and $450.000, respectively, to a depreciation ..................... $ 7,409,317 S 6,658,528 third party, of which $350,000 was in cash and the remain- Tax over book amortization. 4,867,887, — der in notes receivable. Of the resulting gain, approximately Film amortization ................ 808,877 778,366 $324,000 is included in other income, and the remaining Basis reduction of acquired $5,014,000 is deferred. The net assets and operations of assets ................................. 413,246 558,000 these stations were not significant. Other ................................... — 326,600 During 1994, the Company sold substantially all the broadcasting assets of four radio stations. KEYN-Fbl and Total deferred tax liabilities 13,499,327 8,321,494 KQAM-AM in '*A%ichita, KS were sold for $2,000,000 to a third party, while KORA-F\1 and KTAM-AM, in Deferred tax assets: Bryan/College Station, TX, were sold to a former employee Gain on sale of assets........... 374,354 y 360.895 for $25,000 in cash and $2,200.000 in notes receivable. Book over tax amortization.. — 2,270,963 These transactions resulted in a net gain of approximately NOL carrforwards.............. 1,580,419 — $700,000 which is included in other income. Net assets and Other ................................... 261,251 136.801 operations of these four radio stations were not significant. Total deferred tax assets.. 2,216.024 2,768.659 NOTE F - INCOME TAXES Significant components of the provision for income taxes are as follows: 1996 1993 1994 Current - federal ....... S 22,213,972 S 16.084,974 S 12,068.573 Deferred .................... 5,730,468 2.953,612 188.059 State .......................... 2.158,976 1.691.824 2.130,470 Total .......................... S 30.103,416 S 20.730,410 S 14,387.102 Included in current -federal is $1,717,000 and $438,488 for 1996 and 1995, respectively, related to taxes on other income from nonconsolidated affiliates, which has been included as a reduction in equity in net income (loss) of, and other income from, nonconsolidated affiliates. The remaining S28,386,416 and $20,291,922 for 1996 and 1995, respectively, have been reflected as inc omeiak I expense. 1 Significant components of the Company's deferred tax liabilities and assets as of December 31, 1996 and 1995 i are as follows: Net deferred tax liabilities.... S 11,283,303 S 5,552,835 The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense is: 1996 1995 1994 Amount Percent :Amount Percent Amount Peaen: income mx expense atwtutoryntes......... ..... S 26,650.911 35i6 S 18.460.409 35% S12.738.809 35.: Scue income nsa. net of federal tax benefit .......................... 1.403.334 2% 1.099.686 2% Amor=tion of goodwill ....... ................... 1,493.025 2% 1.543.250 4% Other, net ............................. 556,146 1% (372.935) . 1384,806 4°: 461.261 1 (197.774) S 30,103.416 40% S 20.730.410 41% S14,387.102 40i0 Income taxes paid in 1996, 1995 and 1994 amounted to $35,668,689, $18,132,416, and $13,107,514, respectively. The Company acquired certain net operating loss carryforwards in conjunction with its purchases of KLRT/KASN-TV, Metroplex Communications, Inc. and US Radio, Inc. At December 31, 1996, the remaining carryfor- ward relating to US Radio amounted to $4,515,482 which expires completely in the year 2010. The Company had no The Company does not offer or provide post -retire- ment health care benefits to any of its employees. NOTE 1 - INVESTMENTS On May 24, 1995, the Company purchased 21.4% of the outstanding common stock of Heftel Broadcasting Corporation (Heftel) a Spanish -language radio broadcaster in the United States. On August 5, 1996, the Company pur- chased an .additional 41.8% of the outstanding common tuck of Heftel in a combined transaction involving a pur- chase of shares of Heftel held by officers and directors of Heftel and a tender offer for shares of Heftel held publicly. After the stock purchase and tender offer, the Company tem- porarily held approximately 63.2% of the outstanding com- mon -stock of Heftel. In February 1997, the Company sold 350,000 :hares of Heftel common stock it owned as a selling share- holder in a secondary stock offering in which Heftel sold an additional 4,830,000 shares of its common stock. Also, Heftel issued another 5,559,491 shares of its common stock in connection with its merger with Tichenor Media System, Inc. ;Tichenor), another Spanish -language radio broadcaster with stations in major Hispanic markets in the United Mates. The combination of the Company's stock purchase and tender offer, Heftel's secondary stock offering and the Company s sale of 350,000 shares of Heftel common stock, and Heftel's merger with Tichenor reduced the Company's interest in Heftel to 32.3% of the total number of shares of Heftel's common stock outstanding. On May 11, 1995, the Company purchased a 50% interest in ARN, an Australian company which owns and operates radio stations and a radio representation company in Australia. _ -----.____.__._.___ _ In 1996, Clear Channel invested additional.capital in ARN so that ARN could purchase the broadcasting assets of two radio stations in Adelaide, Australia. In July 1996 the Company purchased a one-third interest in NZRN, which purchased all of the stock of Radio New Zealand Commercial, formerly a government -owned company consisting of 52 radio stations throughout New Zealand. The following table presents a rollforward of the NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Company's investments in and advances to ARN, NZRN and Heftel. ARN NZRN Heftel Tonal At December 31. 1995 S61,397,305 — S 20.514.03S S Sl 011.343 Acquisition of 1/3 of NZRN................... — S 31,254.258 — 31.254.25S Additional investment during the period ..... 12,984,104 — 119.056.4S9 132.040.503 Dividends and other returns of investment received .................... (7,206.823) — — (7.206 S_3` Equity in net income floss) of non- r consolidated affiliates 5,473,583 (1.861.119) (S.962.072` 0.349.60A) A.ztonization of excess cost, included in equity m net income ........... — — .5 - l_..-: �o t2.5S3.7- �o) Foreign currency translation gains ....... 1,123,471 — — 1.123.471 Unrealized gains on marketable securities (529.744) %529.744' AtDecember31,1996S73.241.896 S29.393.139 S12S.L'124.699 521.1.659.734 All three of these investments are not consolidated, but are accounted for under the equity method of account- ing, whereby the Company records its investments in these entities in the balance sheet as "Equity investments in, and advances to, nonconsolidated affiliates." The Company's interests in the net income or loss of and the other income, net of taxes, derived from each of Heftel, ARIN and NZRN is reflected in the income statement as "Equity in net income (loss) of, and other income from, nonconsolidated affiliates." Other income derived from nonconsolidated affiliates con- sists of interest and management fees which aggregated S4,493,000 in 1996 and $1,401,000 in 1995, less applicable income taxes of $1,717,000 in 1996-and S438,000 in 1995. The following table presents selected financial information for ARN and NZRN for the year ended December 31, 1996. For convenience purposes only, data for ARN and NZRN have been translated from Australian dollars and New Zealand dollars, respectively, to U.S. dollars at the applicable December 31, 1996 exchange rates.. Balance sheet information at December 31, 1996: ti NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ........._.. ... _................................................................................................................_........................................................._............................................................. r ARN NZRN Current assets ...................... $ 15,675,000 $ 15,620,000 Noncurrent assets ................ 230,486,000 106,094,000 Current liabilities ................. 23,993,000 15,178,000 Noncurrent liabilities........... 130,628,000 104,524,000 Shareholders' equity............ 91,540,000 2,012,000 Income statement information for period the investment was held in 1996: Net broadcasting revenues $ 74,310,000 $ 24,966,000 Station operating expenses 52,360,000 21,677,000 Net income (loss)............ 15,480,000 (2,228,000) The Company's equity in net income of ARN and NZRN, which is based on U.S. GAAP, is not directly compa- rable to the net income reported above by ARN and NZRN. The most significant difference involves the charge against results of operations for the amortization of radio licenses under U.S. GAAP, which is not recorded under Australian or New Zealand GAAP. The Company's share of such amortiza- tion for its investment in ARN was $2,581,000 for the year ended December 31, 1996, and the Company's share of such amortization for its investment in NZRN for the period this investment was held in 1996 was $598,000. OTHER INVESTMENTS In addition, during 1996 and 1995, the Company provided approximately $52,750,000 and $10,075,000, respectively, in financing to third parties, which was used to effect the acquisition of radio and television broadcasting operations. The financing provided in 1996 was in the form of loans secured by the assets of certain radio stations and the financing provided in 1995 was in the form of a guaran- tee of debt of $9,575.000 and a $500,000 cash advance secured by an option to purchase the broadcasting assets of a certain television station at a nominal amount. The Company is accounting for the 1995 transactions in a man- ner similar to the equity method, the effect of which was not significant for the years ended December 31, 1996 and 1995. The $52,750,000 in loans are accounted for as notes receivable as of December 31, 1996, with the related interest income recorded in other income. In February 1997 the Company received repayment of $40,000,000 of the notes receivable. NOTE J - CONTINGENCIES From time to time, claims are made and lawsuits are filed against the Company, arising out of the ordinary busi- ness of the Company. In the opinion of the Company's man- agement, liabilities, if any, arising from these actions are either covered by insurance or adequate reserves, or would not have a material adverse effect on the financial condition or operations of the Company. NOTE K - SUBSEQUENT EVENT$ In January 1997 the Company closed its acquisi- tions of the following stations: WQMF-FM in Louisville; Kentucky for approximately $13,500,000 and WZZU-Fll in Raleigh, North Carolina for approximately= $7,500,000. Also in January 1997, the Company announced that it entered into two separate definitive agreements to acquire WFSN- FM, V K10-AM and WOLZ-FM in Ft. Myers, Florida for approximately $11,000,000 and W1vflL-FM and WOKYAM in Milwaukee, Wisconsin for approximately $40,000,000. Both of these transactions are subject to federal regulatory approvals. In February 1997 the Company closed its -acquisi- tion of KHOM-FM in New Orleans, Louisiana for approu- mately $6,854,000 and KJOJ-AM in Houston, Texas for approximately $984,000. The Company financed all of thz_e acquisitions subsequent to December 31. 1996 with its line of credit and cash flows from operation_. In February 1997 the Company entered into a definitive agreement to purchase the stock of Eller Media Corporation (Eller), a privately -held corporation, for total consideration of approximately $1.15 billion, consisting of approximately $750 million in cash and the issuance to Eller shareholders of approximately $400 million in the Company's common stock. This acquisition is subject to fed- eral regulatory approvals and is expected to close within the next sir months. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ... ......................... ................................................................._............................................._..................................................................................._-..................... (VOTE L - SEGMENT DATA The Company consists of two principal business segments - radio broadcasting and television broadcasting. At December 31, 1996, the radio segment included 91 stations for which the Company owned the FCC license and 15 stations programmed under local marketing or time brokerage agreements. These 106 stations operate in 26 different markets. The radio segment also operates five networks and includes the Company's equity investments (see Note I). At December 31, 1996, the television segment included eleven television stations for which the Company is the licensee and seven stations which are programmed under local marketing or time brokerage agreements. These 18 stations operate in 11 different markets. Substantially all revenues represent income from unaffiliated companies. 1996 1995 1994 S 217,189,250 $ 144,244,066 $ 95,862.834 Net broadcasting revenue ........................................... Station operating expenses .....:................................... 126,627,982 87,530,942 64,14i,412 Depreciation............................................................... 8,916,495 6,973,801 5,664,700 Amortization of intangibles ........................................ 18,839,820 13,007,026 6.659.726 Station operating income ........................................... 62,804,953 36,732,297 19.389.996 Total identifiable assets ............................................... Capital expenditures.................................................. 1,079,853,088 340,684,912 244.296.718 7,446,872 5,242,553 1,888,787 Net broadcasting revenue ........................................... 134,549,604 105,815,314 82,189,748 Station operating expenses ......................................... 71,703,668 49,973,531 41,231,654 Depreciation............................................................... 10,419,895 8,406,025 6,974,404 Amortization of intangibles ........................................ 7,613,554 5,382,030 5,369,710 Station operating income .......................................... Total identifiable assets ............................................. Capital expenditures.................................................. 44,812,487 42,053,728 28,613,980 244,857,998 222,325,892 167,297,307 12,276,159 9,867,343 3,858,379 Net broadcasting revenue ........................................... 351,738,854 250,059,380 178,052,582 Station operating expenses ......................................... 198,331,650 137,504,473 105,380,066 Depreciation............................................................... 19,336,390 15,379,826 12,639,104 Amortization of intangibles ........................................ 26,453,374 18,389,056 12,029,436 Station operating income .......................................... Total identifiable assets ............................................. Capital expenditures.................................................. 107,617,440 78,786,025 1,324,711,086 563,010,804 19,723 ,031 15,109,896 48,003,976 411,594,025 5,747,166 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 0 NOTE M o QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) March 31, June 30. September 30, December 31, 1996 1995 1996 1995 1996 1995 1996 1995 Gross broadcasting revenue ............... S 70,139,925 $ 58,646,216 S 92,406,491, S 72,342,267 S 107,189,144 S 68,130.871 S 128358.914 S 84,237.698 Net broadcastmg revenue .................. 62,208,445 51,857,692 81,368,271 63,727,814 94,839,458 60.038,131 113,322.680 74,435,743 Station operating expenses ................. 38,230,252 33,181,977 43,762,099 34,151,824 53,408,934 32,104322 62,930.365 38,066,350 Depredation and amortization........... 8,755,025 8,399,455 10,587,534 8,165,573 13,022,189 8,018,075 13,425.016 9,185,779 Station operating income ................... 15,223,168 10,276.260 27,018,638 21.410,417 28,408,335 19.915,734 36.967.299 27.183,614 Corporate expenses—..:....................... --1,673,571 1,530,324 1,804.011 1,585.898 2.170,128 1,608,243 2.8i F66 2,689,992 Operating income .............................. 13.549,597 8.745,936 25,214,627 19,824,519 26.238,207 18,307,491 34,OE7 699 24,493,622 Interest expense ................................. (5,423,837) (4,447,973) (6,321,472) (5,214,279) (8,033,067) (5,559,145) (10,302.0340 (5,530,057, Other income (expense) .................... 205.815 258.580 (19,358) (241,341) 479,345 (98.095) 1.5E=223 (722,42- Income before income taxes ............. 8,331,575 4,556,543 18.873,797 14,368.899 18.684.485 12,650,251 25,3-Z.588 18,241,141 Income raxes...................................... 2,810,010 1,877377 7.356,060 5.594,783 7,260,782 5,698,411 10.95=-564 7,121,356 Income before equity in net income (loss) of, and other income from, nonconsolidatedaffiliates ............... 5,521,565 2.679,166 11.317,737 8,774,116 11,423,703 6,951,840 14,39'.324 11,119.785 Equity in net income (loss) of, and other income from, non - consolidated affiliates ...................... 716,764 — 1.030,410 363,726 (8X3,072) 1,161.568 1.47 .:72 963,409 Net income ........................................ S 6,238.329 S 2.679.166 S 12.548,147 S 9,137,842 S 3.048.631 S 8,113.408 S 15 S-, =96 8 12.083.19- Net income per common share (1).... S .09 S .04 S .17 S .13 S .04 S .12 S 20 8 .17 Weighted average common and common share equivalents outstanding (1) ............................... 70,409.284 70,078.048 71.839.402 70.111,936 78,240.998 70,204.916 78.18-=_3 70.252.215 Stock price (1): High .............................................. S 29.5625 S 15.1230 S 43.3750 S 17.3750 S 45.2500 S 20.4375 S 4=-"-'5 5 22.062i Low ........................•••••.................. 20.3750 12.3313 26.7500 13.4375 33.6250 15.4063 30.5:00 18-1250 (1) Adjusted for two -for -one stock splits declared by Board of Directors in October 1996 and 1995. The Company's Common Stock is traded on the New York Stock Exchange under the sy rnbol CC(:. SELECTED FINANCIAL DATA ....................................... . ............................................................................. ............. ................................................. »................. ...._......................... ..................... ,';cSULTS Oi- A7]C S Ir:FC '7A 10 1 tin thousands, exccpt for per share data) Gross broadcasting revenue ................... Net broadcasting revenue ...................... Station operating expenses ..................... Depreciation and amortization ............... _cation operating income ....................... Corporate expenses ................................ Operating income .................................. Interest expense ..................................... Other income (expense) ...:.................... Income before income taxes .................. Income taxes .......................................... Income before equity in net income (loss) of, and other income from, nonconsolidated affiliates ................... Equity in net income (loss) of, and other income from, nonconsolidated affiliates............................................... Net income ............................................ Net income per common share (1) ........ l eighted average Fommon and common share equivalents outstanding (1) ....... Cash dividends per share (1) ................. 1996(4) $ 398,094 351,739 198,332 45,790 107,617 8,527 99,090 (30,080) 2,230 71,240 28,386 42,854 (5,158) Year ended December 31, 1995(4) 1994(4) 1993(3) $ 283,357 $ 200,695 $ 135,680 250,059 178,053 121,118 137,504 105,380 78,925 33,769 24,669 17,447 78,786 48,004 24,746 7,414 5,100 3,464 71,372 42,904 21,282 (20,752) (7,669) (5,390) (803) 1,161 (196) 49,817 36,396 .15,696, 20,292 14,387 6,573 1992(2) $ 94,472 84,485 55,812 12,253 16,420 2,890 13,530 (4,739) (1,217) . 7,574 3,281 29,525 22,009 9,123 4,293 2,489 - - - S 37,696 $ 32,014 S 22,009 S 9,123 $ 4,293 S .50 S .46 $ .32 S .15 $ .07 74,649 70,201 69,326 62,202 59,320 Current assets ........................................ S 113,164 Property, plant and equipment - net ...... 147,838 Total assets ............................................. 1,324,711 Current liabilities ................................... 43,462 Long-term debt, net of current maturities 725,132 Shareholders' equity ............................. 513,431 70,485 $ 53,945 $ 38,191 $ 24,844 99,885 85,318 67,750 48,017 363,011 411,594 227,377 146,993 36,005 27,679 26,125 10,073 334,164 238,204 87,815 97,000 163,713 130,533 98,343 31,053 --(1) All per share -amounts have been adjusted to reflect stock splits issued on the following dnerand in the following ratios: Date of Split Ratio of Split December 1996 two -for -one November 1995 two -for -one February 1994 five -for -four February 1993 five -for -four March 1992 five -for -four (2) Includes eleven months' results of operations of the Kentucky News Network, nine months' results of operations of WPTY TV, eight months' results of operations of WKCI-FM and WAVZ-AM and six months' results of operations of KEYN-FM, KQAM-AM, WRVA-AM, WRVQ-FM and WRBQ-AWFM - all acquired in 1992. (3) Includes eleven months' results of operations of KQXT-FM, ten months' results of operations of KHFI-FM, nine months' results of operations of WYLD- A.WFM, WRXL-FM, VR-NL-AM (now WRVH-AM) and the Virginia News Network, six months' results of operations of KSJL-AM (now KLKR-AM), four and one half months' results of operations of WLMT TV, three months' results of operations of KITN-TV (now WFTC-TV) and two months' results of operations of KT'FO-TV - all acquired in 1993. (4) See Note E to Consolidated Financial Statements for information regarding acquisitions effected during 1996, 1995 and 1994. COR PO RAT E 0 F F I CERS Chairman Mays Ch Chief Executive Officer Mark P Mays President Chief 0perating Officer Randall Mays Executive Vice President Chief Financial Officer Herbert W. Hill, Jr. Senior Vice President Chief Accounting Officer Kenneth E. Wyker Senior Vice Presidentfor Legal affairs Jacob T. Gray Vice President Controller Demetra Koelling Vice President Corporate Counsel Houston Lane Lice President Finance Ida Chycinski Vice President Cash lanagement Deborah Williams Vice President Corporate Taxation James Smith Senior Vice President Operations & Capital MaraSement George L. Sosson Scrag Vice President Operations -Radio Lowry Mays - Cltainmcut Chief Executive Officer Stan Webb Senior Vice President Operations -Radio Janet Armistead Vice.President Norfolk Richard D. Booth Vice President Little Rock R Miles Chandler Vice President Oklahoma City Matthew Chase Vice President — Providence Bob Cohen Vice President San Antonio Bruce B. Demps Vice President Memphis Edward Essick Vice President Grand Rapids Linda D. Forem Vice President Richmond Carl Hamilton Vice President Houston Ernie Jackson Vice President Houston Earnest L. James We President New Orleans GaryJames Vice President Sprinezeld Wayne Jefferson Vice President Raleigh Alan D. Feld Partner. Akin, Gunip, Strauss, Hauer and Feld Red McCombs Piir tte Investor Theodore H. Strauss' Senior Managing Director Bear, Stearns & Co., Inc. John H. RXilliams' Senior Vice President: Everen Securities, Inc. 'mower, f cite audit committee Reggie Jordan Vice President Richmond Thomas G. Kennedy III Vice President New Orleans Betty Koeurek Vice President San Antonio Judy Lakin Vice President Austin Kevin Malone Vice President Tampa David F. Manning Vice President Tampa Allen McLaughlin Vice President Tulsa Carl McNeill Vice President Richmond John M. Moen Via President Oklahoma Cit. Howard T. Nemenc Vice President Greensboro Dan Patrick Vice President Houston Steve Patterson Vice President Columbia Shaun V: Portmann Vice President Ft. \lvcrs David R. Ross Vice Presidert Miami A copy of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission may be obtained without charge upon written request to: Herbert XN: Hill, Jr. Senior ice President Clear Channel Communications, Inc. P.O. Box 659512 San Antonio. Tmis r8265-9312 Sherri R Sawyer Vice President Memphis Robert R. Scherer Vice President Louisville Mike Shannon Vice President Reading/Lancaster William H. Struck Vice President El Paso Walter A. Tiburski Vice President Cleveland J. Tim West Vice. President Oklahoma City Terry D. Wood Vice President Milwaukee Faith Zila Vice President New Haven Rip Riordan Executive Vice President/ Chief Operating Officer Television Hal Capron Vice President Tulsa David M. D'Antuono Vice President Albany John F. Feeser, III Vice President Harrisburg josh McGraw Vice President Jacksonville Ernst & Young, LLP San Antonio, Texas Bank of New York 101 Barclay Street 22 Floor West New York, NY 10286 Sharon Moloney Vice President Mobile Jack L. Peck Vice President Memphis Randy Pratt Vice President Wichita DeborahJ. Sinay Vice President Providence Steve Spendlove Vice President Minneapolis Jem• Whitener Vice President little Rock CLEAR CHANNEL COMMUNICATIONS INTERNATIONAL Richard D. Novik President AUSTRALIAN RADIO NETWORK Nigel Milan Chic] Executive Officer John Hamilton Chic. Financial Officer t NEW ZEALAND RADIO NETWORK Joan. Withers Chic; Executive Officer Stephen Barron Chic; Financial Officer The annual meeting of shareholders will be hell at 200 Concord PLr_a on the 1st floor in the Conference Room. San Antonio, Texas. at 11:00 am CST on Tuesday, April 29. 1997. TO: FROM: CITY OF HUNTINGTON BEACH - INTERDEPARTMENTAL COMMUNICATION Rich Barnard, Deputy City Administrator Bob Hidusky, Traffic Technician�� SUBJECT: OCTA Bus Ridership DATE: March 22, 1999 This memorandum is in response to your inquiry regarding bus ridership in the City of Huntington Beach. On Monday, March 22, 1999, 1 spoke with Bill Battory of OCTA Stops and Zones Section. The following ridership numbers are approximations for the City of Huntington Beach based on available data on short notice. • On a daily basis (Monday through Friday only) there are approximately 13,700 riders. • On a weekly basis (Monday through Friday only) there are approximately 68,300 riders. • On a yearly basis (Monday through Friday only) there are approximately 3.5 million riders. • A 10-year projection of ridership estimates that there will be approximately 4.4 million riders per year. The above 10-year projection is based on half of a 20-year projection. An actual 10-year projection has not been calculated. If you have any question please feel free to contact me at 536-5518. RMH:rmh F � CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION TO: Rich Barnard, Deputy City Administrator FROM: Bob Hidusky, Traffic Technician �\`4 SUBJECT: Eller Media Reference Check DATE: March 22, 1999 This memorandum is in response to your inquiry regarding the above referenced subject matter. Y I contacted the County of Orange and the Cities of Westminster, Garden Grove, Costa Mesa, and Fountain Valley. The following comments are separated into "Favorable" and "Unfavorable". Favorable: Eller Media • Did pay on time. • Have paid a percentage above guaranteed minimum. • Did keep maintenance up. • Is okay. Unfavorable: Eller Media • Did not light shelters. • Did not maintain shelters. • Organization had to call for payments. • Organization had to do an audit to get payments exceeding guaranteed minimum. • Organization had minor problems with maintenance, but generally okay. • Did not pay electrical fees as required in contract. If you have any question please feel free to contact me at 536-5518. RMH:32791 '�.j C CITY OF HUNTINGTON BEACH (INTERDEPARTMENTAL COMMUNICATION TO: Rich Barnard, Deputy City Administrator FROM: Bob Hidusky, Traffic Technicians���� SUBJECT: Culver Amherst Reference Check DATE: March 23, 1999 This memorandum is in response to your inquiry regarding the above referenced subject matter. Nassau County Planning Commission was contacted regarding Culver Amherst. The Nassau County Planning Commission oversees the bus shelter program for the cities in the county. The Director of Transit had all positive comments regarding Culver Associates (pre Amherst). In addition the county has been receiving a percentage over the minimum guaranteed payment. I contacted the County of Orange regarding bus shelters in their jurisdiction in Newport Beach Laguna Beach, Sunset Beach, Foothill Ranch, Laguna Hills, Tustin, and Santa Ana. These bus shelters were recently acquired through the purchase of Southwest Media and Manufacturing Company. The County of Orange had positive comments about Southwest Media and Manufacturing Company and expects the same with Culver Amherst. I also contacted Stamford Transit District (Connecticut) and West Orange Township (New Jersey). These bus shelters were recently acquired through the purchase of Amherst. The above mentioned organizations had positive comments about Amherst and expects the same with Culver Amherst. If you have any question please feel free to contact me at 536-5518. RMH:rmh Dun Z"Bradstr.eet"Su lier 'Performance Review" - _ r INDUSTRY ®ELLER 0c6LVER - OVERALL RAPerformance ' - - --I nAi 1.43 Summary _ _ __TING 1 Rating were based on their _ customers such as Advertising-_; Agency, Outdoor Advetising _ Services, Newspaper Publishing & _ _:'• - = ' Motion Picture Distribution Attitude of,P.ersonne(--_- - Technical Support .44 -- - -- TotaIGost s = A t 1.23 - - Quality of. Product/Service - _ - 1.49 Pfoblem/Respon"siveness ' 4 T; t ` I Timeliness l 1.5 446 7777 0= 0 5 1 1.5 2 2.5 3 - 3`5 4ii - 45 _ PERFORMANCE MEASUREMENT Timeliness Problem/Responsiveness Quality of Product/Service Total Cost Technical Support Attitude of Personnel (652 BUSINESSES (5 BUSINESSES) INDUSTRY ELLER 1.46 1.40 1.40 1.40 1.49 1.20 1.23 2.00 1.44 1.60 1.30 1.00 (4 BUSINESSES_ ) CULVER , 1.50 1.00 1.00 1.00 1.00 1.00 s i 1 W I UER3ALL-RATING= 1. Exceeds Expectations 2. 3. Meets Expectations 4. 5. Below Expectations ✓ Overall Rating = (Overall satisfaction with supplier performance) ✓ Timeliness-- Delivery or Performance = (Delivery of product or performance of service in promised time periods) ✓ Problem Responsiveness = (Responsiveness to any product or service problem) ✓ Duality of Purchased Product or Service = (Level of quality of purchased product or service) ✓ Total Cost = (Promised total cost of product or service versus any additional incurred costs) ✓ Technical Support = (Level of ongoing service to support or enhance purchased products or services ✓ Attitude of Supplier Personnel = (Attitude of Supplier personnel about supplier and toward customers) March 5, 1999 Review Committee City of Huntington Beach IEILLE7" 2000 Main Street MEDIA COMPANY Huntington Beach, CA 92648 Dear Review Committee: Eller Media is proud to submit its response to the City of Huntington Beach for transit amenity service. Our 16 years of service give us a unique perspective on the city's transit amenity goals and we believe our proposal reflects this. The following are just some of the benefits our proposal offers to the city: • Nearly $3 million available upon the signing of the contract. • The greatest amount of revenue offered any city in the State of California. • A total compensation package worth over 10.5 million dollars. • A distinctive new transit amenity design for the city. • Alternative methods that offer to significantly increase revenue to the city. • Backed by the largest Out -of -Home Media Company in the world. • Bonded by triple A rated company. e Least amount of inconvenience of service to the public. • The most effective coverage of Southern California maximizing ad sales. • 16 years of experience serving Huntington Beach. • Unparalleled level of maintenance service. All of this and more will be covered in the proposal we have provided to the City of Huntington Beach. We look forward to being the city's transit amenity provider into the next millennium. Sincerely, Bra c�-§eide President, Eller Media Company Southern California Transit Shelter Division ORANGE COUNTY DIVISION 1539 W. ORANGEWOOD AVE., ORANGE, CALIFORNIA 92668 (714) 997-1700 FAX (714) 997-0077 ELLER MEDIA COMPANY STREETSCAPA PARTN- , , ;HIV \' , Ai - FOR THE CITY OF HUNTINGTON BEACH, CALIFORNIA MARCH 5, 1999 ' rJI . &d I -"py �- �Gw vtoYs "•fib�y}y 4t"y�_ ,%LeY9k t f2` �r I MEDIA COMPANY VS 1) Introduction 2) Key Personnel 3) Proposed Methodology 4) References and Letters 5) Financial Background 6) Bus Shelter / Bus Bench Designs 7) Length of Service -x 8) List of Contacts =- 9) Similar Entities F 10) Maintenance Schedule 11) Installation Schedule 12) Compensation _- 13) Non -Ad Amenities 14) Bidder Information 15) Summary P-3 P-6 P-9 P-12 P-25 P-27 P-37 P-39 P-43 P-47 P-49 P-52 P-56 P-59 P-61 . � ,�^ \ .. .\ � \ ^� \ �WIN . � � � .� � �ƒ � � . \ � � ( �\ § Transit advertising is central to Eller Media Company's vision for Out -of -Home Advertising. A special area of expertise within the company. Eller Media Company operates over 3,100 transit amenities throughout Southern California alone: including the counties of Los Angeles, Orange, San Diego, San Bernandino, Riverside, and Ventura. With sixteen years of experience providing transit amenity service to the city of Huntington Beach. Etter Media is proud to propose a comprehensive program. The program we are proposing is designed to not only achieve the goals and objectives of the city, but to make the city a focal point in how transit amenity programs are approached and accomplished in the future. The following are highlights of the benefits that will be described in greater detail throughout our proposal: • A level of guaranteed revenue greater than that received by any other municipal agency in the State of California. • The financial strength to pay the first five years of guaranteed revenue in advance, reducing risk and offering the added benefit of present value. • The maximum amount of guaranteed revenue beginning on day one of the contract. • An additional escalating share of revenue that guarantees to bring in extra income to the city based on the success of the largest Out -of -Home advertising company in the world. • A unique partnership with Coca-Cola that offers to greatly increase the level of revenue to the city. • A specially designed transit shelter with distinctive features that will be unique to Huntington Beach. • Advertising and non advertising bus benches of a unique quality and design. • The least amount of inconvenience to the public for the transitioning of the transit amenity program. • Maintenance and repair schedules that ensure crews will be maintaining our transit amenities five days a week ia.the city visiting eachamenity a.minimum of twice a week, more often if necessary. • Eller Media Company is a subsidiary of the largest media company in the world with a capitalized value exceeding 16 billion dollars • A commitment to providing service based on ridership and marketing needs at any stop in the city - now and into the future. O Public Service exposure throughout the city, the County, the State and the World! 4. Ira's Central Maintenance PO Box 40482 Pasadena, CA 91114 Subcontractors Ira's Central Maintenance (ICM) is a disadvantaged owned. Pasadena based organization. ICM has been maintaining Etter's Los Angeles and Ventura County advertising shelters since 1994. ICM also maintains the shelters at the Burbank Airport. The contact person is Mr. Ira. Galloway at (818) 788-3610. ND Electrical Construction 2316 Via Amapola San Clemente, CA 92673 Etter Media has been using ND Electric to illuminate our bus shelters since 1984. They hold a C-10 license and are fully bonded. The contact person is Mr. Mike Martin at (714) 498-1799. Mobile Wash Company 124 S. Bell Circle Anaheim, CA 92806 Mobile Wash is responsible for cleaning Etter's Orange County shelter inventory. They have eight (8) years of experience. Their trucks are equipped with pressure water systems, and they have steam cleaning services. They are also equipped with 2-way radios and beepers for 24 hour response. The contact person is Mr. Dave Cristini at (714) 535-3417. American Craftsman 28367 Mt. Stephen Avenue Santa Clarita, CA 91351 American Craftsman has recently been tasked with providing Eller Media concrete and electrical service. They have successfully worked with the Cities of Santa Clarita, Santa Ana and West Covina. Their strengths lie in interfacing with City Public Works departments, field inspectors and construction experience. The contact person is Mr. Tom Geoffroy at (805) 250-0797. Media Maintenance 9930 Bell Ranch Drive Santa Fe Springs, CA 90670 Media Maintenance, a disadvantaged business entity, has performed the current service of routine cleaning of Eller Media's shelters in the City of Huntington Beach. Providing twice -weekly maintenance, Media Maintenance's crews are specially trained. The contact person for Media Maintenance is Mr. John Townsend at (562) 944-9804. 5. The success of any shelter program is determined by the experience of the respective outdoor advertising company. Eller has the most experienced staff dedicated to the various aspects of outdoor advertising and specifically bus shelter programs. Eller's staff includes the following persons. Eller Media Company Southern California Transit Division Orange, California Bruce Seidel -President Southern California Transit Shelter Division The founder of Target Media, Mr. Bruce Seidel has thirty-four (34) years experience in the outdoor advertising industry. Mr. Seidel has sixteen (16) years experience in the bus shelter industry and is the past President of the Shelter Advertising Association, a national organization of bus shelter operators. Mr. Seidel founded Target Media, one of the pioneers of the bus shelter industry. in June 1983. He was Managing General Partner of Target Media until 1993 when Patrick Media Group. a wholly owned subsidiary of General Electric Capital Corporation, made a substantial investment in the company. He served as Vice President/General Manager of the newly structured company; Patrick Target Media. In August of 1995. Eller Media Company purchased Patrick Media Group, and appointed Mr. Seidel as President of the Southern California Transit Shelter Division. Mr. Seidel will serve as the key contact for the City of Huntington Beach program. Mr. Seidel can be reached at (714) 289-2000. David Atkinson -Sales Manager Southern California Transit Shelter Division As a native Southern California resident. Mr. Atkinson has been in the advertising/media industry for ten years. While focusing on mall advertisement and primarily bus shelters, Mr. Atkinson has demonstrated expertise in all areas of sales management. His dedication to serving local, regional, and national accounts gave him the honor of being a member of the 1998 Presidents Club. He can me reached at (714) 289-2009. 7. i- r� s� Dana Ouellette -Operations Manager Southern California Transit Shelter Division Mr. Ouellette has been involved in all aspects of bus shelter maintenance, posting, repair and installation since he joined Target Media in 1984. In 1993 he became Director of Operations and is now responsible for all areas of the day-to-day Southern California Transit Shelter Division operations. Mr. Ouellette has thirteen years experience in the bus shelter industry. He can be reached at (714) 289-2003. Tony Ingegneri-Public Affairs Manager Southern California Transit Shelter Division Mr. Ingegneri's experience with transit shelters began in 1989. Mr. Ingegneri has been the lead contact person for the City of Huntington Beach since 1989. Mr. Ingegneri has served four years as a Planning Commissioner for the City of Garden Grove, three years on the Citizen's Advisory Committee for the Orange County Transit Authority and two years as a Garden Grove City Councilman. Mr. Ingegneri will be the project manager for all day-to-day contact with the City of Huntington Beach. He can be reached at (714) 289-2015. Kevin Kocic - Operations Supervisor Southern California Transit Shelter Division A native of Huntington Beach, Mr. Kocic oversees maintenance and repairs in the city. He has thirteen years of experience in repairs, maintenance, and supervision with transit amenities including the installation of most of the bus shelters in the city. As a resident of Huntington Beach, it will be Mr. Kocic's responsibility to ensure all transit amenities are properly maintained on a daily basis. He can be reached at (714) 289-2016. a Proposed Methodology Our understanding of the goals of the City of Huntington Beach as they pertain to the transit amenity program is to generate the greatest amount of revenue and to provide safe and reliable service to the public. To that end, Eller Media Company is the most qualified to meet this goal for the following reasons. 1) Ability to Generate Revenue • Five years of revenue up front reducing risk to the city while increasing revenue through present value. • The maximum amount of revenue begins on day one of the contract because our shelters are already in place. • The largest Out -of -Home media company in the world with a diversified line of media proven to be attractive to advertisers in their media buying decision making. • 800 sales representatives employed at 90 sates offices around the world in touch with every national, regional and most local advertising and marketing companies throughout the world. • The ability to provide space in the top U.S. markets to promote the city of Huntington Beach as a vacation destination thereby increasing the visibility of the city at no cost while generating tourist dollars. • A partnership with Coca-Cola that offers to increase the city's earnings significantly through a program that is already proven. • Sixteen years of developing local businesses advertising on transit shelters throughout the city. • Proven track record of selling and promoting,the city of Huntington Beach to local, regional, and national advertisers. • Etter Media will hire and pay for a part time, independent engineer (such as from WittDan Associates) to assist in meeting the schedule for a smooth transition of the transit amenities. • Eller Media Company serves 86% of the Orange County Market exclusively with transit shelters. This exclusive coverage enables Eller Media to more effectively package local, regional, and national advertising buys throughout Orange County and Sounthern California. 10. I I Proposed Methodology 2) Ability to Provide Safe & Reliable Service • An existing program and proposed installation schedule that offers the least inconvenience and disruption of service to the public. • Experienced installation and illumination crews that have installed and illuminated most of the existing transit shelters currently in place. • A GIS mapping program and proprietary maintenance software program designed to monitor all amenites and maximize maintenance and repair support throughout the City. • Maintenance crews will be in the city five days a week cleaning ensuring all amenities will be cleaned at least twice a week, more often if necessary. • A one -hour response time to any problem during normal business hours and four-hour response time for all other times. • All street furniture will be galvanized to better resist the wear and tear of salt air which comes with a beach proximity. • Elegant etched rear glass to give a distinctive look for the city while rendering the panels less vulnerable to etched graffiti. • All amenities will be securly bolted to the concrete sidewalk. • Eller Media is properly licensed to operate a transit shelter program, with a C 61- D 34 license number 702550. • Bonded by a AAA rated insurance company to ensure the faithful performance of all aspects of the transit amenity program. qlll State of California c� CONTRACTORS STATE LICENSE BOARD A�'a' ACTIVE LICENSE (a Emense Numo702550 Emny CORP PATRICK MEDIA GROUP INC DBA Busmess Name ELLER MEDIA COMPANY ciassmraoonis C61 /D42 C61 /D34 Eapnallon Dale 0 2/ 2 8/ 2 0 01 12. Eller Media Company is proud of the relationship it has developed with the many municipal agencies we serve, Eller Media strives to create new and unique transit shelter programs for its clients. The following references are examples of Eller Media's commitment to providing a StreetScape Partnership Program. Please feel free to contact any of our references regarding the transit amenity program we provide. 13. s i i t City of Irvine In February of 1997 Eller Media Company entered into an exclusive advertising bus shelter contract with the City of Irvine. The scope of Eller's shelter program was divided into two phases. Phase I consisted of fifty-four (54) advertising shelter and nine (9) non -advertising shelters. Eller also is providing 150 transit benches and trash receptacles which Eller maintains. For more information about this city, contact Farideh Lyons at (949) 724-6237. 14. Irvine Transportation Center In March of 1998 Eller Media, as part of our Phase I bus shelter agreement with the City of Irvine, designed, constructed and installed five bus shelters for the train platform. The shelters were designed to complement the depot in style and color. Eller also constructed and designed three sided kiosks that were placed around the perimeter of the depot. One panel of each kiosk has a "YOU ARE HERE" map. For more information regarding this center, contact Farideh Lyons at (949) 724-6237. -a 51 AWE-- row.- -- r 15. City of Laguna Niguel In October of 1993, Eller Media entered in to an exclusive bus shelter contract with the City of Laguna Niguel. Prior to this, Laguna Niguel had approximately thirty-five advertising shelters provided by two companies. Eller Media's shelter program includes the installation of forty-four custom designed advertising shelters along with thirty-four non -advertising benches. Eller Media provides maintenance for all shelters and benches. For more information about this city, call Dave Rogers at (949) 362-4377. 16. City of Mission Viejo Eller Media has been providing bus shelter service to the community of Mission Viejo since 1983. In 1998, the City of Mission Viejo and Eller Media entered into an exclusive agreement. As part of the contract. Eller Media provides 35 custom -designed advertising bus shelters, one public service bus shelter and 54 custom -designed non -advertising bus benches throughout the City. For more information, about this city, call Elaine Lister at (949) 470-3053. 17. City of West Covina In February of 1998, Eller Media entered into an exclusive bus shelter contract with the Clty of West Covina. Prior to Eller becoming involved in West Covina, the City provided non advertising bus shelters at eighty one of the total one hundred ninety six bus stops. The scope of Etter's shelter program in West Covina includes the installation of fifty custom designed, domed roof advertising shelters. Additionally, Eller relocates any city owned non advertising shelter which is replaced by an Etter advertising shelter. Eller also subsidizes the maintenance of all non advertising shelters by providing the City with an annual cleaning fee; the fee is used to pay for cleaning of all eighty one non advertising shelters. For more information about this city, call Naresh Palkhiwala at (626) 814-8425. 18. City of Tustin In November of 1995, Eller Media entered into an exclusive bus shelter contract with the City of Tustin. Prior to Eller Media's involvement in the City of Tustin, the city provided seven non -advertising shelters and fifteen non -advertising benches for the one hundred thirty six bus stops. The scope of Etter's shelter program in Tustin includes the installation of forty four advertising shelters, four non -advertising shelters and thirty five non -advertising benches. Eller Media maintains all shelters (ad, non -ad & city owned non -ad) along with the fifty non -ad benches. For more information about this city, call Joe Myers at (714) 573-3173. 19. r Cra>traft ;, rr Withrow rr T. `!. Butterfield ember -_= R. Potocki f - _nith _7-; '��rlbCl f7, 1 October_8. 1997 Cifiy of Mission Viejo RE: ELLER MEDIA SHELTERS To NN-hom it may concern: tsaa.oQac�e.a�o Eller NIedia has provided bus stop shelters in Mission Viejo since before City Incorporation in March 1988. I have managed the City's shelter program since June of 1990. I find that the Eller Media shelters are clean and well maintained. and that the company pays its fees in a timely fashion. Th.- companv is also very responsive to Cite. requests and requirements. If you have any questions regarding the level of service which Eller -'%,ledia provides in Mission Viejo, please feel free to call me at (714) 470-3053. Sincerl-ly, CITY OF MISSION VIEJO EI"aine Lister Associate Planner •- � � , „ ...._ �• ... ,-.,., .._.. ���o� cal �1e � �-n.ot �n -, • _- ,-�«�,r � uF oR b CI7T OF ORANGE DEPARTMENT OF PUBLIC WORKS - STREET AND SANITATION DIVISION - (71a) 532-6A80 FAX (714) 532.6444 March 20, 1997 To Whom It May Concern: RE: Eller Media Dear Sirs, The City of Orange has had an exclusive contract with Eller Media for the installation and maintenance of transit shelters since 1991. During that time we have enjoyed a very positive working relationship with their organization. They have provided an excellent service level to the residents of our City. Their quick response to service requests and prompt payment record has made it a pleasure to work with them. During the time we have contracted with them we have had no citizen complaints regarding the condition or cleanliness of the shelters. The adv-,:-tising content of the shelters has always been in good taste and in accordance with the pro%isions of our contract. The Citv of Orange would c +ve them an excellent rating as a service provider and would not hesitate to recommend them to any entity or jurisdiction that may be considering their services. If I may provide any further information re2arding their performance record please do not hesitate to contact me at (i I-1) 532-6461. incerely, John oertscher 637 WEST STRUCK AVENUE ORANGE. CA 92667 CM OF LAKE FOREST �pF UAKc r 1 Mavor �BER 20• S9� Peter He zog Mayor Pro Tem Richard T. Dixon February- 17. 1993 Council Members Kathryn McCullough Marcia Rudolph Helen Wilson Mr. Bruce Seidel. President Via U. S. Mail & Facsimile Robe C. Duner Robert C. Dunek Southern California Transit Shelter Division (714) 997-3234 Cit,, Clerk Eller kledia Company Jeri L..stateiv 1539 West Oranr_ewood Avenue Orange. California 92668 Subject: Bus Shelter Public Ser%-ice Announcements Dear Bruce: The Franchise Agreement betwe;n tce Cit-of Lake Forest and Eller Media Co -Spam for Installation and Maintenance of Bus Smelters provides the opportunity for Public Ser%ice Announcements to be placed in Shelters. While this may be a common feature of sucl, Agre,ments. I -want to express my appreciation for Eller's willingness to obser\ e cotin the spirit and the letter of the clause. Ce:72iniv. it -would be unde-stan able if paid er- tising material would take precedence o%-er Public Service Announc�-ments. Ho\\.N;!•. %\e are gratified by your cooperative at.izade and helpfulness in designinn. producin__ and installing anractiv e. appropriate and finished artwork for issues and events in which the Cite has an interest. Frequently. our bus- schedules pre%-nt us from thanking our franchise partner•_ for the important parts they play in keeping our citizens inforned. I hope this letter helps %ou to know that we are aware Of 1, our fine work- and that it is sincerely appreciated. Very truly yours. CITE' OF LAKE FOREST Robert L. Woodinus. P.E. Director of Public Works,C lLy Ens=ineer r\am,r1%,hr0S 0rpbs%c Juc wwcw.citwlakeforest.com 23161 Lake Center or:•. Suite :C Lake Forest. CA 9: l .�. F.,-r C..... .nirr Ae Ad — CA111•n.rr tlrr rrr1urY -CIVI—.— Z61 -� Wcrks Dcoar,l- r i Cory o' irime. One Civic Cenier Plaza. PA Box 19575. mine. Caidoma :_52� 's: _ t - _ _.'. . July 8, 1998 To whom it may concern: The City of Irvine contracts with Eller Media Company to provide transit shelters and other related street furniture throughout our community. Eller Media has been an excellent company to work with. and they have met and exceeded our expectations for developing, implementing and maintaining our transit amenity program. In developing our transit shelter program, the City of Irvine was interested in a unique style that could appeal to a varier- of architectural designs. Eller Media worked patiently and diligentIv to meet our requirements. They are eery responsive and have maintained their shelters and non advertising benches in "like new" condition. We highly recommend Eller Media Compan,, contact me at (949) 72 1-7==0. Sincerely. Nlariv Bi rant City Project Development administrator MB:m%N- If you have any- questions. please feel free to IN L- — — CITY of LAGUNA NIGUEL M&R 2 8 1987 CITY COUNCIL 2:791 La Paz Road - Laguna Nigucl. California 92677 Parricia C. B.;Ivs Public VCorks/Enginccrin Mark J. Goodman Phone/714.362- 060 Faxx/714.362.4369 Linda Lindholm March 25, 1997 To Whom It May Concern Re: Reference for Eller Media Eddic Rosc Mimi Walters The City of Laguna Niguel entered into an exclusive agreement with Eller Media in 1993 to operate and maintain the bus shelters and bus benches throughout the City. Currently they have 44 shelters and 34 bus benches. Eller Media has been very responsive and cooperative on all issues related to the shelters/benches. They respond promptly to all requests for repair due to vandalism and to all other issues. They have also been extremely helpful in preparing posters for City functions and working with us to place them in the shelters. Our overall experience with Eller Media has been very positive. If you have any questions or require additional information, please contact me at (714) 362- 4339. Sincerely, ,K&, Y,&2 Ken Montgomery Director of Public Works/City Engineer iApubwrk3%wp5I dAu\1caers'�elcr.dr 5Z Company Information Eller Media Company is one of the oldest and most respected outdoor advertising companies in America. Eller Media operates in excess of 200,000 outdoor advertising panel faces in forty (40) major U.S. markets boasting sales revenues in excess of five hundred ninety two million dollars. A wholly owned subsidiary of Clear Channel Communications, Inc. Eller Media's parent company is a publicly traded company on the New York Stock Exchange trading under the symbol of CCU. Clear Channel Communications is a diversified broadcast company that owns or programs 184 radio stations and 18 television stations in 43 U.S. markets. Clear Channel's capitalized value exceeds sixteen billion dollars and has historically been one of the best performing media companies on the New York Stock Exchange. Clear Channel Communications also owns Europe's leading outdoor advertising company, More Group. More Group operates out -of -home advertising in thirteen European countries and ten countries outside of Europe. As Etter Media approaches its one hundredth year of service, Eller remains the leader in the out -of -home advertising industry. Eller is the nations leading outdoor advertising company. Dominant in 40 major markets across the country, Eller coordinates multi -market campaigns and caters to the marketing needs of local, regional and national advertisers. The Eller product mix includes transit shelters, commuter rail transit, buses, point -of -purchase signage, wallscape murals, malt displays, airport advertising, highway bulletins, bus benches, and 30-sheet posters. Enclosed with our proposal are copies of th 1995, 1996, 1997 financial reports for Clear Channel Commincations. The 1998 financial report is not available at this time. 4.1 n N Eller Media Company has worked with Tolar Manufacturing to design a new shelter and bench for the city of Huntington Beach. Developed to withstand both natural and man made forces, our new shelter will add a distinctive look to the city unlike any transit amenity found in California. The colors used for the shelters and benches are Ultramarine Blue with Vermillion (a rich reddish orange) roof accents similar to the city's logo colors. Pictures of the proposed shelter and bench, available in both advertising and non -advertising structures, are shown in the following pages. Also enclosed are paint chip samples, a back glass sample and a model of the proposed shelter. The following are additional benifits of our proposed transit amenity: 1) The Ultramarine blue will provide a highly visible, distinctive looking shelter along with the Vermillion roof accents. 2) The shelters and benches will be first galvanized to help greatly reduce the corrosive effects of the salt air. 3) The shelters and benches will be powder coated to give a strong resistant surface for vandalism. 4) The upper back panel of the shelters will be tempered, 1/4 inch thick etched glass with the letters "HB" centered in the glass, encircled similarly as the city's logo and the words "Surf City" written underneath. 5) The lower back panel will be punched metal to deter vandalism while providing protection from the rain and allowing air to flow freely for the summer months. 6) The non -advertising bus benches will either carry the city's own public service message or the city's logo. The color and design of the transit amenites are subject to the approval to the city. In the event the city does not approve the design.and color, Eller Media will work,with the- city- to-develop_new styles: . 28. o� N n0 0n0n0(;( n 9 o 1 �I �) n .•� »� ���� - 0 �� n n n n 0 0n0n0nt is r"4°d 2yi i�� a ',�) n n �) \�) no n () O o n) nn 9 4Mn o1, tS n t; n 1 n l) o n' . ,., i p ae� +�°�"gg"--ta���r„`�,y���� c ,�� •fit u ) � � n i n � • r� �'S'��, �i S@ yx,U to 7 y m�I ^8Ayy"}�;yi�p� • y5 I 'Fr ..x P '++ ' 4 ' ® s A END ELEVATION Pl. 1/4 X 3 1/2 X 6 3/4(2) /8 BOLT(B) SECTION C4 ALUM ROOF PANELS 1/8" THICK G ICJ\IIS I:III:HI: t 12'-7 7/8' 12'-2 1/2' FE a, ADJUSTABLE FRONT ELEVATION SCREEN SUPPORTS ROOF BOW 2" X I' RECT ALUM TUBE O 48' SPACING FLUORESCENT LAMP :::,.__, O O 3 8E X PAX 7 REMOVABLE LENSES O O SECTIONBALLAST H ROOF PLAN VIEW -BELOW THERMOCLEAR AND BOWS O O 3/8 PLATE 7X7 END ELEVATION ROOF PANEL 1/8 THK ALUM SHEET �I X I X 1/16 ALUM SO TUBE(BATTEN) \� r GUTTER SCREEN INSERTION GROOVE J' SCH 40 PIPE —SHOE- 2 1/2" SCH 40 PIPE 1/2-13 HEX HEAD BOLT X 4' SCREEN SUPPORT/ANCHOR 3/4-10 X 12' THDEO ROO WITH HEXNUT,LOCKWASHER k FLATWASHER % SECTION L:Wh1 ' "»v::•.: spa �" am tns � M I END ELEVATION STL PL 1/4 X 3 1/2 X 6 3/4(2) /8 BOLT(so)) ��pp SECTION 04 TWIN WALL POLYCARBONATE �1/4" THICK w N \ Y a FRONT ELEVATION 1 /4" THICK lE%AN THERMOCLEAR ROOF FLUORESCENT LAMP REMOVABLE LENSES O O STEEL PLATE ® 3/8 X 7 X 7 O ® O BALLAST SECTION DD=DD ROOF PLAN VIEW -BELOW THERMOCLEAR AND BOWS O STEEL PLATE 3/8X 7X 7 �11 RILRRR n woe O • ru sa LLI END ELEVATION \\'t3s ROOF JOINT BAND — CUTTER • SCREEN INSERTION GROOVE 3" SCH 40 PIPE SHOE- 2 1/2" SCH 40 PIPE r I HEX HEAD BOLT a / 1/2-13 X 4" SCREEN SUPPORT/AP 3/4-10 X 12" iHOE WIHEXNUT,LOCKW/ ik FLTHLIWASHER uIA ., R� fl I� 1 � �Al A, US 1 d did r�e�1 r "�� 1 II °�� '�` �' I tc "• a ,��, t III �I.II I�as ..Ii,I.11r.lrtill, Ihro I11��111 �1U �I �� n' II IIIIlllli ol����%�'�ha •" " " II 111.111�� � �� II. ,i 111 ,IIL. �& � w.rrk�� � I. I 111 III II A�� ,�I�����. + I � I11�1 II'11 Ir � � `;;:;; Ilj II►Il�fj � ;��"'," � �� tom. � + a�,al�n � I I _ r I ( ► ( ar '� r '��' aytia�" Y� i ii 11 1 S �M ,et I 111111111 r },{ JR r �c, x r I ► I �' � w 11` II II � �o�i5'�a e�'� 'ill p 3h I it ,II 111111111 2 a "' �i' L1111111. I1�IftK�� III 111 II, (l) I.i II III Ifll 4 �rS�I it: II Illflll , Oil I I I harIg III III .� �d t�v � II III Ii� i III1111 11 I II.I III I LL11 ll!%) N Phl Ill I . lI111,I1 g,1 i.i! 111 111 �e4 5 I t 11 i I x,r II; II 7f t'a' Ilf I�II� m I 4 ZONE I REV I DESCRIPTION 10 GA STEEL-1/4' DIA 0 3/0' SPACING 72 72 1/2 \ \ \ \ \ .A ee oeeeeoeeeeeeeeoeeseeeoseeeo ea000 oeeee o0 a o aee°°e°e same eoeoo maee mee eeeo ooe ee eo o°e°O°oe °°° o ee eomes0000aeeeoseeeoeo esoeeooeooee eoo �A STEEL PIPE 3/4' SCH 40 Perforated Metal Bench w 1AIITLI CIC%I /DA(-V CI IDE)ODT DADC REMOVABLE TRIM I I I I I I STEEL PIPE I I 1 SCH 40 I I I I I I FRONT SHOE DETAIL —41 STEEL PIPE 1 1/4 SCH 40 n - -..... -- - --I -- - - -. . -. - _.-._ ACRYLIC PLYWOOD PLASTIC PLYWOOD$�FLATHEAID FLATSAR BRACKET SPACER 3/8 X 4' STEEL F TH3EAD S' SCREW BOLT 3/8-16 X 2 1/4' FACE FRAME POSTER �, WELDEO STEEL CONSTRl1CTKIN SECT1ON A — A SECTION B — B SCALE 4X SCALE 4X W DATE I PPPR� TAMPERPRUF BOLT 14-20 X 2" WITH SELF —LOCK HEXNUT STEEL F. 8. 3/8 X 2" X 4" 100% WELDED TO PIPE WITH HOLE FOR 3/8 HILTI TYPICAL 4 PLACES LIATolar Manufacturing Company, Inc 730 Monroe Way, Placentia CA 92870 DESCRIPTION PERFORATED METAL BENCH 6' CUSTOMER/VENDOR ELLER MEDIA SIZE MATL. WITH SIGN BACK DWG NO. REV A SUPPORT BAR SCALE DATE DRAWN BY: Shelter Size Shelter dimensions are 16 feet long, up to 5 feet deep (roof), with a base height of 8 to 10 feet high (depending upon roof style) SHELTER L POSTER lu 6' MAN Shelter Illumination Eller Media Company Transit Shelters are 100% illuminated with no cost to the advertiser for labor, materials, and permits. The lighting contributes to the safety of evening transit users, deters vandalism to the structure and makes it possible for the message to be seen at night. All shelter advertisement and overhead ceiling lights are illuminated from dusk until dawn. Shelter Design Eller Media Company Transit Shelters are made with structural aluminum and heliarc-welded for maximum strength and durability. Each shelter has one rectangular advertising box with two sides. These two panels are constructed of aluminum and have either safety tempered or a clear polyurethane glass covering the advertisement. The size of each advertising display face will not exceed 48' wide and 70' in height. 35. ORANGF MALL 4 - �s Now Elio El ch Eller Media Company has 16 years of experience selling advertising and operating transit amenities in the City of Huntington Beach. This experience includes the following benefits and attributes: 1) Sixteen years of installing advertising and non -advertising transit shelters and benches. 2) Sixteen years of maintaining advertising and non -advertising transit shelters and benches. 3) Sixteen years of selling advertising on transit shelters in the city of Huntington Beach, as well as Orange County, the State of California and around the world. 4) Eller Media Company serves 86% of the Orange County Market exclusively with transit shelters. This exclusive coverage enables Eller Media to more effectively package local, regional, and national advertising buys throughout Orange County and Southern California. 5) Some of our other markets sell advertising on benches, relevant experience specific to Huntington Beach includes the following: a) Sixteen years of selling advertising to local businesses in Huntington Beach of which local advertising is primarily the clientele of bench advertising. b) Eller Media's Orange County office receives numerous calls from local advertisers inquiring about advertising which some are referred on to bench advertising companies. c) Eller Media's local Orange County sales office employs 5 local sales people to seek opportunities in this market. 38. 0% CV) The Following is a list of municipal and private contracts where Eller Media Company provides transit shelter service. Feel free to contact the people below regarding the service we provide. AVTA Bill Budlong Executive Director 1031 West Avenue L-12 Lancaster, CA 93534 (805) 726-2616 City of Buena Park Paul Dipietro 6650 Beach Boulevard Buena Park, CA 90620 (714) 562-3652 City of Costa Mesa Dennis Johnson Assistant Engineer 77 Fair Drive Costa Mesa, CA 92626 (714) 754-5180 City of Diamond Bar Bob Rose 21660 East Copley Drive Diamond Bar, CA 91765 (909) 396-5694 Burbank Airport Contracts/Prop. Mgr. 2627 Hollywood Way Burbank, CA 92505 (818) 840-8840 City of Bellflower Mike Egan City Manager 1660 Civic Center Drive Bellflower, CA 90706 (562) 804-1424 City of Commerce Daniel Gomez 2535 Commerce Way Commerce, CA 90040 (213) 722-4805 City of Cudahy Nick Mull 5220 Santa Ana Street Cudahy, CA 90201 (323) 773-5143 City of Banning Don Foster 789 N. San Gorgonio Ave. Banning, CA 92220 (909) 922-3105 City of Brea Sam Hanna Engineer One Civic Center Drive Brea, CA 92621 (714) 990-7760 City of Corona Chet Wior 815 West Sixth Street Corona, CA 91720 (909) 736-2201 City of Cypress Keith Carter Traffic Engineer 5275 Orange Avenue Cypress, CA 92630 (714) 229-6741 City of Et Monte Debi Moraza City Transportation Manager 3525 Clemmons El Monte, CA 91731 (626) 580-2217 City_of Fontana Frank Schuma Community Services Director 8353 Sierra Avenue Fontana, CA 92335 (909) 350-6712 City of Garden Grove George Allen Traffic Engineer 11391 Acacia Parkway Garden Grove, CA 92642 (714) 741-5100 City of Hesperia Ken Hubler 15888 Main Street Hesperia, CA 92345 (760) 947-1000 City of Imperial Jerry Hahs 420 South Imperial Ave. Imperial, CA 92251 (760) 355-4371 City of Lakewood Scott Pomrehn 5050 Clark Avenue Lakewood, CA 90712 (562) 866-9771 City of Los Alamitos David Cox Landscape Superintendent 3191 Katella Avenue Los Alamitos, CA 92720 (714) 431-3538 City of Montebello Kathryn Voltz 1600 West Beverly Boulevard Montebello, CA 90640 (213) 887-4545 City of Fountain Valley Don Heinbuch Administrative Assistant 10200 Slater Avenue Fountain Valley, CA 92708 (714) 965-4412 City of Grand Terrace Thomas Schwab City Manager 22795 Barton Road Grand Terrace, CA 92324 (909) 824-6621 City of Huntington Beach Bob Hidusky Traffic Engineer 2000 Main Street Huntington Beach, CA 92648 (714) 536-5518 40. City of Irvine Farideh Lyons Transportation Engineer 1 Civic Center Plaza Irvine, CA 92604 (949) 724-6000 City of Laguna Niguel Tim Casey City Manager 27821 La Paz Road Laguna Niguel, CA 92656 (949) 362-4300 City of Lancaster Mark Bozegian 44993 Fern Avenue Lancaster, CA 93534 (805) 723-5902 City of Maywood Ronald Lindsey City Manager 4319 East Slauson Avenue Maywood, CA 90270 (213) 562-5000 Ciy of Moreno Valley Jane Williams 14177 Frederick Street Moreno Valley, CA 92552 (909) 413-3109 City of Fullerton Bob Hodson Director of Engineering 303 W. Commonwealth Ave. Fullerton, CA 92832 (714) 738-6870 City of Hawaiian Gardens Leonard Chaidez City Administrator 21815 Pioneer Boulevard Hawaiian Gardens, CA 90716 (562) 420-2641 City of Huntington Park Patrick Fu 6550 Miles Avenue Huntington Park, CA 90255 (213) 582-6161 City of La Habra Nelson Wong 201 East La Habra Blvd. La Habra, CA 90631 (562) 905-9720 City of Lake Forest Bob Woodings Director of Public Works 23161 Lake Center Drive Lake Forest, CA 92630 (949)707-5783 City of Lawndale Harold Williams 14717 Burin Avenue Lawn date, CA 90260 (310)970-2166 City of Mission Viejo Elaine Lister Planner 25909 Pala Mission Viejo, CA 92691 (949) 470-3053 City of Newport Beach Richard Edmonston Traffic Engineer 3300 Newport Boulevard Newport Beach, CA 92663 (949) 644-3344 City of Norco Jerry Johnson City Manager 2870 Clark Avenue Norco, CA 91760 (909) 735-3900 City of Ontario Lee Pearl 303 East "B" Street Ontario, CA 91764 (909) 391-2510 City of Port Hueneme Greg Brown City Planner 250 N. Ventura Road Port Hueneme, CA 93041 (805) 986-6553 City of San Fernando Mike Drake 117 MacNeil Street San Fernando, CA 91340 (818) 898-1242 City of Santa Fe Springs Gus Velasco Assistant City Manager 11710 Telegraph Road Santa Fe Springs, CA 90760 (310) 868-0511 City of Signal Hill Charlie Honeycutt 2175 Cherry Avenue Signal Hill, CA 90806 (310)989-7353 City of Stanton Terry Matz City Manager 7800 Katelta Avenue Stanton. CA 90680 (714)379-9222 City of Victorville Guy Patterson Public Works Director 14343 Civic Drive Victorville, CA 92392 (760) 955-5204 City of Norwalk James Parker Director of Transportation 12700 Norwalk Boulevard Norwalk, CA 90650 (562) 929-5533 City of Orange John Loertscher 300 E. Chapman Avenue Orange, CA 92666 (714) 532-6455 41. City of Rialto John Meinke 150 S. Palm Rialto. CA 92376 (909) 820-2525 City of Santa Ana Will Hayes Enterprise Manager 217 North Main Street Santa Ana, CA 92702 (714) 565-4048 City of Santa Maria Lee Diaz 705 West Cypress Santa Maria, CA 92454 (805) 925-0951 City of Simi Valley Ray Turpin Transit Administrator 2929 Tapo Canyon Road Simi Valley, CA 93063 (805) 583-6481 City of Tustin Joe Myers 300 Centennial Way Tustin, CA 92680 (714) 544-8890 City of Westminster Don Vestal City Manager 8200 Westminster Blvd Westminster, CA 92683 (714) 898-3311 City of Oceanside Gary Gurley Contract Administrator 300 North Hill Street Oceanside, CA 92054 (760)966-4133 City of Pomona Dave Johnson P.O. Box 660 Pomona, CA 91769 (909) 620-2333 City of San Bernardino Jan Wadges 300 N. "D" Street San Bernardino, CA 92418 (909) 384-5122 City of Santa Clarita Nicole Kvarda 25663 Stanford Ave. Santa Clarita. CA 91355 (805) 294-2507 City of Seal Beach Keith Till City Manager 211 8th Street Seal Beach, CA 90740 (714) 828-8550 City of South El Monte Steve Henley 1415 Santa Anita Avenue South El Monte, CA 91733 (818) 579-9101 City of West Covina Naresh Palkhiwala Principal Engineer P.O. Box 1440 West Covina, CA 91793 (626) 814-8425 City of Yucaipa John Tooker City Manager 34282 Yucaipa Boulevard Yucaipa, CA 92399 (909) 797-2489 County of San Bernardino James Hlawek Administrarion Officer 385 North Arrowhead Ave San Bernardino, CA 92415 (909) 387-2623 Riverside Transit Authority Susan Hafner P.O. Box 59968 Riverside, CA 92517 (909) 684-0850 County of Los Angeles Robin Phillips 900 South Fremont Ave. 11th Floor Alhambra, CA 91803 (562) 458-3968 County of Orange Al Vasquez Public Property Permits Manager 300 N. Flower 1st Floor Santa Ana, CA 92702 (714) 834-2166 42. c1r) Eller Media Company serves hundreds of similar communities with transit amenity programs. Attached is a list of the communities served by Eller Media's Southern California Transit Shelter Division alone. We are current with all of the communities we provide revenue, either in the form of a share of revenue or guaranteed revenue. Similar entities to Huntington Beach include the following examples: 1) Los Angeles County - (comparable because this is our largest L.A. County contract) Etter Media provided an additional $48,000 in its share of revenue above the guarantee for 1998. 2) Costa Mesa - (comparable because it is our second largest coastal community contract, though it is one fifth the size of Huntington Beach) Eller Media provided an additional $4,500 in its share of revenue above the guarantee for 1998. 3) Orange - (comparable because it is a similar share of revenue structure, though it is one fifth the size of Huntington Beach) Eller Media provided an additional $4,800 in its share of revenue above the guarantee for 1998. 44. Municipal Agencies Contract Since Payment Due Advance or Arrears RANGE COUNTY ity of Brea 16 years semi-annual Advance ity of Buena Park ars quarterlyAdvance it of Costa Mesa rs month) Advance oun of Orange K16ears semi-annual Advance i of C ress ars annual Advance i of Fountain Valle ars quarterly Arrears City of Fullerton 19 years quarterly Advance City of Garden Grove 19 years quarterly Advance ity of Huntington Beach 16 years monthly Advance ity. of Irvine 3 years quarterly Advance ity of Laguna Niguel 16 years quarterly Advance ity of La Habra 5 years quarterly Advance ity of Lake Forest uarterl Advance it of Los Alamitos ars semi-annual Advance ity of Mission Viejo K16years ears semi-annual Advance i of New ort Beach ears quarterly Advance ity of Orange 7 years monthly Advance ity of Santa Ana 19 years semi-annual Advance ity of Seal Beach 6 years semi-annual Advance ity of Stanton 16 years semi-annual Arrears ity of Tustin 4 years annual Advance ity of Westminster 16 years quarterly Advance os Angeles County 2 ears quarterly Arrears VTA Lancaster/Palmdale ity of Bellflower 10 years quarterly Advance ity of Burbank 1 year quarterly Advance i of Commerce 10 ears quarterly Arrears ounty of L.A. 9 years quarterly Advance ity of Cudahy 10 years quarterly Arrears ity of Diamond Bar 8 years quarterly Arrears ity of El Monte 10 years quarterly Arrears ity of Hawaiian Gardens 10 years quarterly Arrears ity of Huntington Park 10 years quarterly Arrears ity of Lakewood 10 years quarterly Advance ity of La Puente 1 year quarterly Arrears ity of Lawndale 10 years quarterly Arrears ity of Maywood 10 years quarterly Arrears i of Montebello 10 Xears I quarterlyArrears 45. Municipal Agencies Contract Since Payment Due Advance or Arrears ity of Norwalk 10 years quarterly Arrears �xy of Pomona years quarter rrears ity of San Fernando 6 years I quarterlyArrears ity of Santa Clarita 5 ears ity of Santa Fe Springs 7 years quarterly Advance ity of Signal Hill 5 years quarterly Arrears ity of South El Monte 3 years quarterly Arrears ity of WestCovina 1 year quarterly Arrears an Bernardino County = ax p, � M ity of San Bernardino 10 years quarterly Arrears ounty of San Bernardino 10 years quarterly Arrears ity of Fontana 10 years quarterly Arrears ity of Grand Terrace 10 years quarterly Arrears ity of Hesperia 10 years quarterly jArrears ity of Ontario 10 years quarterly Advance ity of Rialto 10 years quarterly Arrears ity of Victorville 10 years quarterly Arrears ity ot Yucaipa 10 years quarterly Arrears iverside County ity of Banning 10 years uarterl Arrears ity of Corona 10 years quarterly Arrears ity of Moreno Valley 10 years uarterl Arrears ity of Norco 5 years uarterl Arrears iverside ransit Authority 10 years quarterly Arrears an Diego County` .: ceanside 10 years quarterly Arrears entura County�x ounty of Ventura 2 years quarterly Advance ity of Oxnard 2 years quarterly Advance ity of Pt. Hueneme 5 years quarterly Advance �ity of Santa Paula 1 year quarterly Advance Uty of Simi Vallev 12 yearn I guarterlyAdvance 46. 47. Eller Media Company desires to make the City of Huntington Beach a showcase on how transit amenity programs are maintained. Employing the following means to ensure all amenities will look as nice in ten years as they do on the day they are installed. • Crews will visit each amenity twice a week at a mimimum. • All amenities will receive a trash receptacle that will be emptied a minimum of twice a week, more often if necessary. • Crews will be in the city five days a week providing immediate response to any problem that may occur. • Maintenance Pro, a proprietary software program designed to monitor the unkeep of all amenities will be utilized to develop routes for maintenance to maximize the efficiency of our cleaning efforts to ensure more heavily used amenities receive extra attention. • All amenities will be galvanized to resist the corrosive environment of salt air. • All amenities will be powder coated to provide the best resistance to etched vandalism. • All advertising surfaces will be replaced should any substrate obscure the visibility of the display. • The upper back panel of the shelters will be an etched glass to help curtail etched vandalism while enhancing the attractiveness of the amenity. • Based on the size and number of street furniture proposed by Eller Media, we will have maintenance crews working five days a week cleaning each amenity a minimum of twice a week offering the city the best service availabe. • All crews are radio dispatched for immediate repair requests and responses. • Eller Media's maintenance supervisor was raised, and lives, in the City of Huntington Beach, he will personally oversee the maintenance in the city. NJ o� Eller Media Company currently operates the shelters in the City of Huntington Beach. Therefore, Eller Media offers the most convenient method of transitioning the transit amenity program. All of the stops with ridership in the city will receive an amend i.e. an advertising shelter, non -advertising shelter, advertising bench or non -advertising bench and in a quantity to meet either to meet ridership or marketing needs. The benefits of our installation schedule include: • Any stop currently without an amenity will receive priority installation. • Any stop with an amenity will not be without an amenity for more than one day, most will be replaced on the same day the old amenity is removed. • Regardless of ridership or marketing needs, any stops requested by the city will be furnished with an amenity at no cost to the city. • The first group of 12 shelters will be available 30 days from approval of the proposed design. • Each week thereafter. 12 shelters will be available for installation until the project is complete. • The first group of 10 benches will be available 60 days from the approval of the proposed design. • Each week thereafter. 10 benches will be available for installation until the project is complete; or as others remove their bench. • Eller Media has trained crews familier with many prior installations of both benches and shelters in the City of Huntington Beach. • At those sites where an amenity is located by other, a replacement will be provided as soon as possible upon notification of the removal of the amenity at the end of its term. Every reasonable effort wilt be made to work with the existing vendor to accomplish a smooth transition with the least amount of inconvenience to the public. • The installation schedule will have no bearing as to when the clock will begin on revenue to the city, that clock begins upon the execution of the agreement. The following is a letter by the manufacture of the proposed amenities offered by Eller Media Company relating to their ability to meet the proposed installation schedule. 491 79 Eller Media Company is offering to the City of Huntington Beach the highest revenue, balanced with a distinctive new transit amenity design, and unmatched level of service, and the greatest ability to perform. Our commitment to the city wilt be to provide an exceptional transit amenity program with the highest rate of return to the city. To that end, Eller Media Company offers the following: Contract Year Guaranteed Minimum Monthly Payment (Shelter+ Non -Ad Bench) Guaranteed Minimum Monthly Payment (Shelter Only) Guaranteed Minimum Monthly Payment (Ad Bench Only) 'Percentage of Gross Advertising Revenue Year 1 200 200 15 1% a 70%Occupancy a% a so% Occupancy 4% ® 90% Occupancy 6% a 100% Occupancy Year 2 206 206 16 Year 3 $212 $212 $17 Year 4 218 218 18 Year 5 $224 $224 $19 Year 6 $230 $230 $20 Year $236 $236 $21 Year 242 242 22 Year $248 $248 $23 Year10 $254 $254 $24 Potential Extension Year 11 $254 $254 $25 1% a "% Occupancy 2% a s0% Occupancy 4% @ 90% Occupancy a% a 100% Occupancy Year 12 $254 $254 $25 Year 13 254 254 25 Year 14 $254 $254 $25 Year15 $254 $254 $25 'Eller Media Company proposes an additional compensation package which offers to provide the City of Huntington Beach with additional revenue beyond the guarantee based on the sales success of the largest Out -of -Home advertising company in the world. In addition to the guaranteed revenue, Etter Media will provide additional revenue to the city based on advertising occupancy. Should the occupancy level reach between 70% to 79%. the city will receive 1 % of the total revenue generated on all transit amenities in the city. Should the occupancy reach between 80% and 89%. the city will receive an additional 2% of the revenue generated for that year. At 90% to 99% occupancy, the city will receive 4% of the total revenue generated on all transit amenities throughout the city. Should thI occupancy reach 100%, the city will receive 6% of the revenue generated - in addition to the guaranteed fees for that year. This plan is a win win for the City of Huntington Beach and Eller Media Company. 53. �.c y pop For years 12 through 15, the guaranted revenue per amenity will increase by the change in the Los Angeles/Long Beach CPI. The amount shows the minimum that will be offered but the guarantee may go up based on the CPI. The following table is a summary of the compensation offered by Eller Media Company to the City of Huntington Beach. anew This amount does not take into consideration additional monies the city will receive through the level of occupancy share of revenue, additional advertising amenities producing guaranteed fees beyond the minimum number proposed or extra revenue available through the partnership with Coca Cola. 54. non -advertising shelters ($5,000 each) $ 150,000 ;O 01new public service shelter ($6,500 each). $ 195.000 Should the City determine that revenue is more important Total than service, Eller Media offers to liquidate these amenities $ 345,000 in cash and provide the City up to $345,000 in cash. Eller Media will also provide 60 panels of space each month for ��the entire term of the agreement on the public service shelters. In -Kind The value of this space is based on a panel rate of $350 for $ 2,730,000 13 four -week periods per year. The value of the space is $273,000 � per year or $2.730,000 for the first ten years. Eller Media will also produce 150 poster per year, a value In -Kind of $22,500 per year. $ 225,000 Eller Media will also provide two painted bulletins along with their production each year. The value for the two painted In -Kind bulletins and poster production provide an additional $ 305,000 $30.500 per year. Eller Media is offering 30 shelter panels outside the City throughout In -Kind Southern California: the value of this offer is $10,500 per month. $ 1.260,000 Minimum Teri -Year Guaranteed Revenue $ 5,332.800 Present Value $ 458,568 Greatest Total Ten Year Guaranteed & In -Kind Revenue $ 10,656,368 At Eller Media Company, our goal is not only to be a responsible member of the communities we serve, but also to take a proactive role in making our communities a better place to live. Each year, Eller Media donates more than one million dollars worth of public service advertising space in Southern California to campaigns and more than ten million nationwide. Eller Media feels very strongly that Huntington Beach is a unique city. We propose supplying advertising to heighten public relations and promotional copy at no cost to the City in the following manner. Eller Media will build and install 30 public service bus shelters throughout the City of Huntington Beach. The 60 advertising panels will be for the City's exclusive promotional use. In partnership with the City. Eller shall design, print, install and remove 120, 4-color posters a year. Eller Media will also make available to the City, 15 advertising panels throughout Southern California twice a year for four weeks. In partnership with the City, Eller shall design, print, install and remove 30, 4-color posters a year. The City may use these panels to promote special City events and the beach. As by far the largest provider of bus shelter service in Orange County and Southern California, Eller Media offers a market reach that cannot be matched. One hundred and fifty 050) posters will cover (2) postings a year for the city's sixty (60) public service panels, plus two postings a year for the fifteen (15) panels outside the City limits. In addition. Eller Media will make available at no cost to the City of Huntington Beach, two (2) painted bulletins for one four week period each. The bulletins may be used together or separately at different times of the year. Production will bel provided for the two bulletins. • 60 panels for public service in Huntington Beach each month • 30 bus shelter panels per month throughout Southern California • Two bulletins for one four week period each in any market • Production of 150 shelter posters each year • Production of two bulletins each year • Posting and removal of all panels • Free design of posters 55 Eller Media has reviewed the bus stops in the City of Huntington Beach. As part of our proposal to the City we are offering non -advertising bus shelters, public service bus shelters and non -advertising bus benches at stops that do not meet marketing needs yet have ridership demands. The following pictures are examples of the types and styles of non -advertising amenities we provide to other cities. Etter Media will work with the City of Huntington Beach to design matching non -advertising amenities to complement the styles proposed with our response. The scope of non -advertising amenities includes bus benches, trash receptacles, pay phones and other related amenities as may be necessary to meet the needs and requirements of the City of Huntington Beach. Should the City of Huntington Beach desire additional non -advertising amenities in the future, Eller Media will provide them at no cost. 57. - r7 "Id Q-Illy ll=,C Need 1,0, 1-,d Affort 0 Call 714-84Micc 09, Hugingon Beach Community Clinic.. 8041Newman Ave. vft— TAe TA vnl IiOyllun 59. Signature: ' Printed Name: Bruce K. Seidel Firm Address: Eller Media Company Address: 1539 W. Orangewood Avenue City/State: Orange, California 92868 Phone: (714) 997-1700 Fax: Date: E-mail Address: Website URL: (714) 997-3234 March 5, 1999 Bseidel@Ellermedia.com www.EllerMedia.com The proposal submitted by Etter Media Company offers the City of Huntington Beach the greatest opportunity to maximize its revenue potential over the term of the contract, along with distinctive new transit amenities supported by an unparalled level of maintenance. The following are the highlights of the transit amenity program offered by Etter Media Company: • The first five years of guaranteed revenue provided up front resulting in the present value of $2.468,400 be g worth $2,926,968. y erg'- { \ 4 • Over 400 sales people selling Out -of -Home advertising in 43 of the top 50 U.S. Markets, over 800 sales people world wide. • The largest Out -of -Home media company in the world with a capitalized value exceeding 16 billion dollars. • 16 years of experience of selling local, regional, and national advertising in Huntington Beach and throughout Southern California. • A partnership with Coca Cola that offers to bring in significant additional revenue. • The maximum amount of revenue begins on day one of the guaranteed fee per shelter begins and is paid upon the execution of the contract. • A new distinctive transit amenity program designed to enhance the city and provides better resistance to natural and man made forces. • A GIS mapping program and proprietary software program developed to maximize the efficiency of maintanance and repair crews. • Transit amenities visited a mimimum of twice a week with crews in the city all week long and extra service provided at high use stops when needed. • The least amount of inconvenience of service to the public for the transitioning of the transit amenity program. 62. Tolar Shelters Tolar Mfg. Co., Inc® 730 Monroe Way Placentia, CA 92870 Tel: (714) 985.9100 Fax: (714) 985-9111 USA: (800) 339.6165 February 26, 1999 City of Huntington Beach 2000 Main St Huntington Beach, CA 92648 Dear Council Members and Staff: Tolar Manufacturing has been working with Eller Media Company to develop a unique shelter design for the City of Huntington Beach. Based on the design which Eller Media Company has submitted to the City with its bid, Tolar Manufacturing Company, Inc, proposes the following: 1) The first group of twelve (12) shelters and benches will be available for installation approximately 30 days from notice to proceed with manufacturing. 2) Each week thereafter, another group of twelve (12) shelters and benches will be available for installation, continuing through completion. 3) The first group of ten (10) advertising bus benches will be available for installation approximately 60 days from notice to proceed with manufacturing. 4) Each week thereafter, another group of ten (10) advertising bus benches will be available for installation, continuing through completion. Tolar will guarantee to take every reasonable measure within its control to see that this production and delivery schedule is met. If circumstances beyond Tolar's control interrupt this schedule, Tolar will take all steps which Tolar, in it's sole discretion, deems reasonable to correct the deficit. Please feel free to contact me if you have any questions or if there is anything I can provide. Sincerely, Ga ar President MO it Request for Proposal: BUS SHELTERS [BUS B E N'C H E S RFP# 990305=2' PROPOSAL SUBMITTED TO: City of Huntin,gton :6'each Purchasing Division 2000 Main Street Huntington Beach; ,CA 926:48 PROPOSAL,S'UBM,ITTED BY, Christopher J. Culver President CulverAmherst, LLC. 14.1 Fifth Avenue New York, KY 10010 Telephone (212) 539.6104 Fax: (212) 505-6899 ;DATE,SUBMITTED: 'March 5, 19,99 CULVER AMHERST, LLC. ;`�•ia°,' ',cam%„ ��`=� Introduction • .�Rs't�'i%rin�.4.'t<:==: ��"e �kr�f.'�iSs't'`.r�o" uii�-....e..�... �.m..�..����..�.... r Personnel s� Methodology COMPANY OVERVIEW CULVER AMHERST CULVER AMHERST is a rapidly growing shelter advertising company known for innovation and excellence in the development of out -of -home media properties. Culver Amherst specializes in municipal transit advertising, newsracks, wayfinding, mall advertising programs and sponsorship opportunities. The Culver Amherst management team has been involved in the development of street furniture =' programs for 23 years, starting in 1976 with William Paray's development of shelter programs in the state of Connecticut. In 1983, Chris Culver and John Hall pioneered the first public/private bus shelter program on the West Coast under the Shelter Media name, building approximately 1,000 shelters in the Los Angeles Market. Shelter Media was sold to Gannett in 1988. Through a recent acquisition, Culver Amherst has re-established its roots in Orange County and currently operates over 70 shelter displays in Orange County as well as a shelter manufacturing operation in Santa Ana. Our Orange County based management team dates back to 1985, when Shelter Vision was formed by David and Aaron Ravo. Now a part of the Culver Amherst team, the Ravo's manage, under the direction of John Hall, the firm's bus shelter manufacturing, installation and maintenance facility in Santa Ana. By operating its own manufacturing facility in Orange County, Culver Amherst is able to maintain tight control over product quality and provide rapid response for repairs and upgrades in the field. In addition to participating in RFD's for bus shelters and benches throughout the state of California, Culver Amherst currently operates a long-term contract to manufacture, install and maintain advertising displays at Union Station in Los Angeles. The firm has also secured the rights to sell sponsorships and advertising throughout the City of Long Beach in conjunction with its partner, SMG, which operates the Long Beach Convention Center and Long Beach State Culver Amherst currently owns and operates over 1,400 shelter advertising and bench displays as well as 200 non -advertising shelters in the Tri-State area of New York, New Jersey and Connecticut. The Company's Tri-State operation covers a population base of over 4 million people and includes agreements with over 45 municipalities. The Company is also developing new street furniture programs in Washington DC and Maryland. In New York City, Culver Amherst owns the exclusive rights to transit advertising on double-decker buses. It also is the largest operator of wall mural advertising sites in Manhattan. Culver Amherst's out -of -home portfolio includes a partnership with SMG, the country's largest stadium management / advertising company, for the development of exterior signage and kiosk advertising in over forty stadiums under SMG management. The firm is headquartered in New York City and has field offices in New Jersey, Long Island, .4 Connecticut, Los Angeles and Orange County. It has also reserved a space for sales, operations and maintenance at 15400 Graham Street in Huntington Beach in preparation for the awarding of the bus shelter contract. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 HUI NT I, I NOT I ON BEACH OFFICE .. .......... T L LC LVF 1,54,00 Grah'am Street, Huntington, L3eachL, CA Project Overview Culver Amherst is pleased to have the opportunity to respond to this RFP for bus shelters and bus benches in the City of Huntington Beach. Our understanding is that the proposed project encompasses the following components: • Entering into a ten-year franchise agreement, for the provision of transit advertising services in the public right-of-way, with the City of Huntington Beach. A five-year extension may be granted to the vendor at the end of the initial ten year term. • Installing a number of advertising bus shelters, non -advertising shelters, advertising benches and non -advertising benches in the public right of way. The quantity of each of these structures is to be determined by the City. The list of potential and acceptable sites for such services is to be determined by the City. • Providing the most attractive and durable shelters and benches to the City as possible within the financial constraints of the project. • Ensuring as smooth a transition between the current vendor and the new program as possible, and providing uninterrupted transit shelter service to passengers. • Selling bus shelter and bench advertising to local, regional and national clients at the highest possible rates. We understand that our goal is to maximize revenue to the City. • Providing a high level of maintenance, cleaning and repair service to the bus shelters and benches provided. • Providing a portion of available advertising panels to the City for public service announcements. • Providing the City with the greater of a guaranteed payment vs. a specified percentage of advertising revenue. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 Key Personnel Biographical Information Christopher J. Culver President Mark Van Fossan Director Franchise Development Paul Theisen Executive Vice President John Hall Vice President/ Western Region Project Manager Mike Culver Vice President Director of Sales David Ravo Manufacturing & Operations Orange County Aaron Ravo Manufacturing & Operations Orange County Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 Christopher J. Culver President Chris Culver brings more than his name to Culver Amherst, L.L.C. His experience with out -of home and other media forms began in 1983 in Los Angeles. It was there that Culver launched a new out -of - home media company, Shelter Media, creating bus shelter advertising in the U.S. As Executive Vice President, he quickly built Shelter Media into a multi -million dollar company and sold it to Gannett Outdoor in 1988. After the Gannett acquisition, Culver went on to expand his knowledge of marketing and media when he formed a marketing and sales company that developed signage in National Football League stadiums and created new sales venues for the California Lottery. Culver's expertise went international shortly thereafter when he assisted in the launch of the UK Charity Lotteries, the first major lottery in Great Britain. Culver supervised over 125 sales specialists in London that secured 6,500 CTNs, pubs and supermarkets to sell the new lottery and produced in excess of $100 million for this venture in the first year. Culver's next challenge brought him back to New York in 1991 where he was asked to rebuild another media company. As Executive Vice President and Director of Marketing Sales at TDI, Culver redefined sales and marketing and in three years grew revenue to $175 million annually, up from $110 million. TDI is one of the strongest media companies in the country today. Upon forming his own firm in 1994, Culver proceeded to secure the rights to several municipal transit shelter franchises. In 1998, Culver Associates acquired Amherst Media to form Culver Amherst, LLC. Under the Culver Amherst banner, Mr. Culver has formed a strong management team, focused on the development of progressive, high quality bus shelter and bus bench programs. With street furniture franchises in New York, New Jersey, Connecticut and California, Culver Amherst is recognized as a leader in its field. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 Mark Van Fossan Director i Franchise Development As the former President and COO of Patrick Media Group (now Eller Media), Van Fossan brings a strong finance and operations background to Culver Amherst. Shortly after assuming the President's position at Patrick, Van Fossan led the firm's foray into the transit shelter industry until Patrick was sold to Eller Media several years later. Prior to Patrcik Media, Mr. Van Fossan worked in the Corporate Finance departments at Lehman Brothers and Paine Webber. Starting as an analyst and graduating to associate and Vice President, Mr. Van Fossan concentrated on providing strategic financing and mergers and acquisitions advice to companies in the media and communications industry. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 is Paul Theisen Executive Vice President Paul Theisen's background and qualifications include over ten years of sales, marketing and business F' development experience. He currently serves as Executive Vice President of Culver Amherst, L.L.C. _ As a founding partner of the firm, Theisen has been instrumental in securing media properties and has led the firm's effort to win municipal advertising franchises across the United States. In addition to ongoing franchise expansion efforts, Theisen is actively involved with designers, manufacturers and municipal administrators in the development of new street furniture products, including next -generation bus shelters, bus benches, informational kiosks and wayfinding systems. Theisen's prior experience includes over seven years in the sporting goods industry, from 1988 to 1995. As Director of International Sales & Marketing at Cybex, a leading manufacturer of fitness and sports medicine products, he built a worldwide distribution network with representation in over 60 countries, and established subsidiaries in Germany, Belgium and Japan. He has also served as a retained consultant to manufacturers, marketers and import/export firms in the sporting goods industry. Theisen holds a Bachelor of Arts degree from the University of San Diego, and an Masters degree in Business from the American Graduate School of International Management. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 ` John Hall Vice President/ Western Region Project Manager 4 " Mr. Hall began his career in the outdoor industry as V.P of operations and Public Relations for Shelter i Media Inc. In the early 80's, he was a key figure in the acquisition of the Los Angeles transit shelter and bench franchise which ultimately lead to the installation and maintenance of over 1000 structures in the southern California market. This market became the most successful and publicly accepted program in the country, based on the foundation set by Hall. His ability to attract major advertisers in the Motion Picture and Apparel industries led to the overall acceptance and ultimate success of the medium on a national level. ` In 1998, Gannett's outdoor division purchased Shelter Media and its holdings. Gannett appointed John as Transit Coordinator for all of Southern California. His responsibilities included inventory control, national accounts supervision and Public affairs. In 1993, John was promoted to Director of Transit and given the task of reviving their San Diego market. For the next three years, record sales were achieved. In 1996, Outdoor Systems purchased Gannett's outdoor division. John was retained as their Director of Transit in charge of Public Affairs. His expertise and dedication made it possible to secure additional key properties for Outdoor Systems. In 1997, John was given the additional position as Director of Outdoor System's nation mall properties consisting of over 700 malls nationwide. Again his abilities and dedication made it possible for further expansion and higher profitability. In 1998, Culver Amherst opened a West Coast office. John Hall was hired as Vice President/Westem Region. Based in Orange County, Hall currently oversees the expansion of Culver Amherst's business in California and other western states. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 Michael Culver Vice President / Sales Mr. Culver has over 12 years of transit advertising sales experience. He began building the Los Angeles bus shelter advertising franchise with Shelter Media in 1985 as an Account Executive and then moved to Phoenix to build that franchise until Shelter Media was purchased by Gannett in 1988. After returning to LA to as Sr. Account Exec. for Gannett, Mr. Culver was hired as National Sales Manager for Metro Displays, a transit media company with over 2,500 displays nationwide. In 1990, while National Sales manager for the Atlanta shelter franchise, Michael organized and handled national sales for a network of independent transit markets including Atlanta, St. Louis, Ft. Lauderdale, West Palm Beach, Cincinnati, Portland, Connecticut, Orlando, Tulsa and suburban San Francisco. Michael's last stop before Culver Amherst was with P & C Media, the second largest bus advertising company in the country with 15 markets. Mr. Culver served as Vice President of National Sales and was responsible for a 30% growth in sales from 1996-1997. As V.P. of Sales for Culver Amherst Mr. Culver is responsible for all aspects of sales and marketing, overseeing both local and national sales representatives and managing national accounts for all Culver Amherst properties. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 F i David Aaron Manufacturing Ravo Ravo & Operations With over 14 years of experience in the bus shelter business in Orange County, David Ravo and Aaron Ravo bring a wealth of knowledge to Culver Amherst and its proposed program for Huntington Beach. As founders of Shelter Vision in 1985, David and Aaron built a bus shelter franchise in Orange County which was acquired in 1996 by Eller Media. In addition to building 70 new bus shelter advertising panels throughout Southern California, the Ravo's have also been designing and manufacturing bus shelters since 1994 at a manufacturing facility in Santa Ana. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 Huntington Beach Shelters & Benches 5 ' I Proposed NlethodolgU Culver Amherst has reviewed the scope of work as described in the Request for Proposal and agrees to comply with all terms and conditions contained therein. Culver Amherst's strategy for developing and maintaining a successful bus shelter and bench program in Huntington Beach is based upon, but not limited to, the following: I. MAINTENANCE, SERVICE & REPAIR Local Office & Crews Culver Amherst will base its service and local sales operation in the City of Huntington Beach and has a lease pending for space at 154000 Graham Street. Repairs will be handled quickly and efficiently through the stocking of parts and equipment at the office, in vans and at the manufacturing facility in Santa Ana. Service vans will be stocked with all materials required for daily cleaning and maintenance. This includes all cleaning products, hardware, glass panels, toolbox, power tools, generator, posters, lamps and extension cords. Brand new vehicles will be leased for the Huntington Beach crews and all personnel will carry Company identification at all times. Service Routes & Routing Analysis Immediately following the installation of a bus shelter or bus bench, a crew will visit the site every day for a 30-day period. This will allow the Company to establish a maintenance requirement profile and thereby plan out the most efficient routes for the service team. All shelters and benches will be visited a minimum of twice per week. Those sites requiring extra attention will be serviced more frequently. Scheduling of service crews will be based on the results of initial and ongoing route analysis in Huntington Beach. Managing Complaints Complaints Management will be handled through the following methods: • A service number will be established in Huntington Beach for complaints, emergencies and sales inquiries. The line will be staffed 24 hours per day and the number will be posted in a noticeable yet attractive fashion on the front of each shelter and bench. This line will be in place prior to the installation of the first unit. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 • Complaints will be logged by the Project Manager and reviewed on a frequent and regular basis. The Company will respond to routine complaints related to shelter or r_ bench installations within 24 hours. • Serious or urgent complaints will receive a response as soon as is physically _ possible and no later than 24 hours from the time of first receipt of complaint. These types of complaints may require the Project Manager to confer with City personnel prior to responding to complaining party. • A Complaint and Comment log will be kept in Culver Amherst's office. Copies of the complaint log will be made available to the City if requested. II. MANAGEMENT & OPERATIONAL CONTROL Controlling Signace Inventory Culver Amherst manages signage inventory through the use of a computerized database tracking system, developed in-house specifically for outdoor advertising applications. Every sign unit in the inventory pool is assigned an identification number, which is linked to a database indicating the sign's position, size, price and current status, ie. sold until (date) to (advertiser) at ($rate). The database will also indicate every sign's respective vehicle number and contract number. This tracking system allows us to analyze inventory on a real-time basis and maximize revenue through efficient inventory management. A timeline graph is also generated, allowing the sales force to visually check on available inventory on a daily basis. Installing Advertising Signs Signs will be installed by an employee of Culver Amherst. Employees will ensure that signs are installed on a timely basis and in a professional manner. An installation log will be maintained by Culver Amherst and will be available for review by the City upon request. Quality Control Culver Amherst seeks to maximize revenue generated to the City of Huntington Beach under this contract. By focusing on the overall quality of the installation of advertisements and the cleanliness of the signage, the Company has developed a reputation for developing showcase properties. It t is our intent to maintain a high level visual presentation by installing well -designed capital equipment and by insuring the frequent cleaning of signs and rapid replacement of torn or defaced signs. All bus shelters will be illuminated. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 III. MAXIMIZING ADVERTISING SALES Culver Amherst and its principles have extensive experience in installing, maintaining and, in particular, selling outdoor advertising in over one hundred markets across the United States. The key to our success lies in four key areas of our approach: Dedicated Sales Force Culver Amherst has developed its own dedicated local sales force, and is thereby able to present Huntington Beach bus shelter and bench media in the best possible light. In order to maintain the highest standards in its presentation to clients, the firm does not use outside reps or brokers. By combining the efforts of an experienced local sales force with the Company's strong national sales staff, we are able to maximize revenue to the City. In selling advertising space, Culver Amherst always seeks to strike a balance between local, regional and national advertisers in the market. We anticipate local advertisers to represent approximately 60% of the advertising revenue. Currently the city appears to have approximately 10% local advertisers. Help Advertisers Achieve Their Goals Culver Amherst is a marketing -oriented advertising company. Before selling any media form, we analyze the advertisers' sales and marketing goals. A beverage company may be seeking to increase the number of cases sold to a certain demographic group or may be looking to increase its distribution at the retail level. When selling bus shelter advertising to such an advertiser, it is important to understand these marketing challenges and demonstrate during sales presentations how our medium reaches the consumer where they work, shop, eat and play. We show advertisers how bus shelters penetrate the local market and bring the client's message into the busy commercial neighborhoods of the city. Unlike radio and TV, you can't turn the channel. Unlike newspapers and magazines, you can't turn the page. Pursue Client's Entire Media Budget Unlike most outdoor advertising companies, Culver Amherst does not limit itself to discussing outdoor advertising budgets with clients. Instead, we analyze their entire media budget and outline how their radio, television and print budgets can be shifted toward outdoor advertising, thereby providing them with a more powerful media plan at a lower overall cost. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 i Develop New Categories In the early 1980's, when outdoor advertising was dominated by tobacco and alcohol } accounts, the firm's key executives were instrumental in developing new categories, r. including fashion, entertainment and health care products. Culver Amherst has recently sold programs to government agencies, movie studios, internet companies and world renowned artists. These are examples of just some of the new categories we pursue in conjunction with more traditional advertising categories. By developing new categories, the Company is assured of future growth. r i i Maintain the Highest Standards in Design & Maintenance In building outdoor media properties, Culver Amherst seeks to create premier shelter and bench advertising franchises by maintaining the highest standards in the industry not only in advertising clientele but in the aesthetics, operation and maintenance of the plant. By building showcase properties, the Company has developed a reputation as a high quality operator. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March S, 1999 i Develop New Categories In the early 1980's, when outdoor advertising was dominated by tobacco and alcohol 4 accounts, the firm's key executives were instrumental in developing new categories, including fashion, entertainment and health care products. Culver Amherst has recently sold programs to government agencies, movie studios, internet companies and world renowned artists. These are examples of just some of the new categories we pursue in conjunction with more traditional advertising categories. By developing new categories, the Company is assured of future growth. Maintain the Highest Standards in Design & Maintenance In building outdoor media properties, Culver Amherst seeks to create premier shelter and bench advertising franchises by maintaining the highest standards in the industry not only in advertising clientele but in the aesthetics, operation and maintenance of the plant. By building showcase properties, the Company has developed a reputation as a high quality operator. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March S, 1999 r References Name: Michael Licitra Title: Planning Dept.Supervisor Organization: Nassau County Planning Commission Telephone: 516-571-5924 Franchise: Long Island Bus Shelters Name: Hayim Grant Title: Vice President Organization: New York Apple Tours Telephone: 212-944-9700 Franchise: Transit advertising - bus exteriors Name: Katherine Rice Title: Director of Cultural Affairs Organization: City of Los Angeles Telephone: (213)-485-8529 Franchise: Los Angeles bus shelters Name: Moira McNulty Title: Transit Director Organization: Stamford Transit District Telephone: (203) 977-4610 Franchise: Connecticut bus shelters Name: Leonard Lepore Title: Director of Transit Organization: West Orange Township Telephone: (973) 325-4160 Franchise: New Jersey bus shelters Name: Chris Stark Title: Vice President Organization: Midwest Bankers Group Telephone: (317) 581-1776 Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 A Thomas S Gulotta County Executive Nassau County Planning Commission 400 CourAy Seat Orlve Mineola, N.Y. 11501 -4M 51 t3.571.6844 - FaX 518471-a83® December 3, 1998 Mr. Dan Villella Director of Finance CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach, California 92640 BY FAX: (714) 374-1571 Dear Mr. Villella: Paul F. Ponessa W ector I regret that you were not able to receive my telephone call this afternoon, but I hope that this letter will serve to answer your questions. As you know, I am the administrator in charge of Nassau County's bus shelter program. In February 1997, Nassau County awarded a contract to Culver Asso- ciates to manage and maintain our municipal bus shelter program. This contract. was awarded with high expectations for an improvement of amenity for our transit riders as well as a substantial increase in revenue to help defray the operating deficits that are inherent in provision of public transportation. In the less than two year period that Culver has had this contract, Nassau County's expectations have been realized many times over. Culver has rehabilitated approximately 100 shelters and 100 benches that the previous vendor had permitted to fall into disrepair, and has introduced about 100 new shelters and 100 new benches to the supply. All of this has been accomplished in a very cooperative and enthusiastic manner., in a somewhat compiicat.ed environment of overlapping jurisdictions requiring many levels of approval. All of Culver's facilities have been kept clean and properly maintained. Apart from facility benefits to our bus riders, Nassau County's cash receipts in the first year of Culver's involvement were more than six times the amount received in any previous year from the former vendor. Given the program expansion that has occurred over the past year, we expect to do even better this year. This is marked contrast to the efforts of the former vendor, whose i- advertising sales and commissions to Nassau Couaty were static over the previous ten years. I Good luck in your bid solicitation. Please feel free to contact me it T can provide further information or assistance in drafting your contract. verryl truly yours, Michael Licitra Planner Supervisor gym' OUTDOOR ,... ; ~ : SERVICES Out -of --Home Media Specialists 137 Fifth Avenue • New York, NY 10010 Tel: 212-473-4141 • Fax: 212-529-9534 December 15, 1998 I To whom it may concern: Please accept this letter of recommendation for Culver Associates. I have known Chris Culver for approximately 15 years dating back to when he built the bus shelter advertising franchise in Los Angeles and Orange County in the mid-1980's. Their hard work and dedication to the business has gained our respect and trust that our advertisers will be well serviced by their company. We have purchased millions of dollars worth of advertising from Culver during the past and we look forward to doing considerable business in the future. Our past and present client list includes: - • Polo/Ralph Lauren California Milk Advisory • Amstel Seagrams • Levis Chrysler • Nike etc. etc. Culver's return to Southern California will bring a welcomed, creative and innovative approach back to the market. Best regar Bob Nylan President I I FILE No.105 12/18 '98 16:00 ID:FT CONMUNICATIONS FAX:310 319 9744 PAGE 2 S � FISHER/ TERRELL COMMUNIC:A11,1ONs INC:URPORATI-A) I 429 Sawa Monica Blvd. Snhr 300 Sama Monica, CA 90401 � (tll0) 3!y975lt i (310) 319.9744 FAX Mcember 18, 1998 To Whom It May Concern: l have been buying medial from Culver liar over Iran years and have (mind their service to be impeccable. 'Their final work and dedication to II1C hUS111CSS hay made our mIntionship what it is -- one that is hased on nuptial respect, and trust. Our post and hrcmit elient list. includes: • Penguins • lux Broadcasting t'ompany • Roosevelt Field Mall • 13ugIC I i<1y We have dune considerable business throughout 1110 years and intend (0 continue N1. pporling the markets that Culver represents. Yours sincerely, Tom 'Terrell President 1)'T:dh i 12-16-1998 2:30PM FROM MARKETING AD VENTURE 1 310 540 6883 P.1 Marketing Nentures 21213-B Hawthorne Blvd. ® Suite 5263 ® Torrance s CA ® 90503 e Phone 310\543-1996 Fax 31M540-6W3 December 14, 1998 To Whom It May Concern, My company Marketing AD ventures has been in the out -of -home advertising business for the past 15 years. During this time, we have had the opportunity to work with Culver Associates on quite a few different projects. It has always been an excellent experience. They say that a company is only as good as the people who work in it. If that is the case, this is a great company. Whether it was wallscapes or buses benches or shelters, in Manhattan or across the country in Los Angeles the people that make up Culver Associates are consistent in the high quality of product they offer and plant operation. I have found that Culver not only offers a valuable advertising venue but does so from a professional "in it for the long term" mentality. The out -of -home plants that Culver has been a part of have always been of the highest structural quality and maintained in such a way that my advertising campaigns have been worry free. They are up on time and the appearance of the structures is in adherence with what we do: We specialize in fashion clientele that demand perfection. Everything revolves around "the look". Our client list includes: Adrienne Vittadini, Harley Davidson Eyewear, Guess? Jeans, Swank Inc., Ocean Pacific, Nantucket Industries, Viva International, GoTo.com, Saint Johns Health Center, Hunt -Wesson and others. I would recommend Culver Associates to any city that is interested developing a bus shelter and/or any other outdoor type of venue. Sincerely, Bruce G. Friedlander ,.' DEC-18-1998 09:24 212 260 0646 P.02i02 My P=ond experience oath Ct= Culver spas over I a yeas, wh= both he and myself wem one of the first outdoor bus shelter advertisers in Los Angeles. verywyyours., ldvertisin& Inc. Lo es Prekdent a0erti$ing, in*. 149 bay street'. aanta' montoa ..ea 90405 U1 .581.4889 T-VO-581.5908 TOTAL P.02 I LE, R_T' 1' S 1_ 'IY G Urry Fischer December 16, 1996 President Mr. Bruce Sondike Buyer County of Nassau 1551 Franklin Avenue Mineola, New York 11501 Dear Mr. Sondike: Please` accept this lett4r as a formal recommendatin for Chris Culver. I have known Mr. Culver since the mid-1980's when he was Executive Vice President of Shelter Media in Los Angeles. Mr. Culver grew the Los Angeles bus shelter franchise into a successful franchise which is flourishing today. Mr. Culver was in my opinion responsible for creating the credibility the bus shelter advertising industry has today. Since the acquisition of Shelter Media by Gannett Transit I have also been in close contact with Mr. Culver and in fact have entrusted millions of dollars in outdoor advertising with him since 1991 on behalf of Time Warner Cable of New York City and NY1 News. The County of Nassau will be best served having Mr. Culver's experience in design, manufacturing, maintenance and sales. A ly,isch /ph 4 KI Fifth Avenue 9th FI= New York New York 10010 (212) 353-0100 Fax: (212) 353-1105 McCANN-ERICKS®N Kathleen LeRose Vice President Director of Out —of -Home Media December 13, 1996 Mr. Bruce Sondike County of Nassau 1551 Franklin Avenue Mineola, New York 11501 Dear Mr. Sondike: This letter is a formal recommendation that the County award its bus shelter franchise to Chris Culver. We have worked closely with Mr. Culver in his former capacity as Executive Vice President of T.D.I., one of the largest out -of - home media vendors in the country. His knowledge and experience in all facets of the out -of -home advertising business proved invaluable in assisting the agency in convincing several high profile clients to invest their advertising dollars in such media vehicles as bus shelters, billboards and telephone kiosks for the first time. Among these clients were AT&T, Chemical/Chase Bank and the Coca- Cola Company. All were pleased with the results and continue to include such vehicles in their media plans. We already have pending buys for shelters in Nassau County for 1997 for such clients as Chase Manhattan and Exxon. We look forward to working with Mr. Culver again. Best regards, Kathleen LeRose McCANN-ERICKSON, Inc. 750 Third Avenue, New York, NY 10017 Phone 212-984-3707, Fax 212-984-3728 Financial Statements CULVER AMHERST, LLC FINANCIAL STATEMENTS 4 i CULVER AMHERST, LLC PRO FORMA BALANCE SHEET PRO FORMA STATEMENT OFINCOME AND RETAINED EARNINGS YEAR ENDING DECEMBER 31, 1998 Year Ending (E) (: 12/31/98 COMBINED BALANCE SHEET ' PRO FORMA ASSETS - CURRENT ASSETS i Cash $ 510,581 Accounts Receivable $ 2,598,561 Work in Process $ 1,131,080 Due From Affiliates $ 535,654 Prepaid Expenses $ 157,168 Loan to Affiliate $ 15,000 Employee Loans Receivable $ 1,761 TOTAL CURRENT ASSETS $ 4,949,807 PROPERTY AND EQUIPMENT, (net of $172,000 in accumulated depreciation) $ 1,139,178 OTHER ASSETS Security Deposits $ 133,130 Loan origination fees, (net of $583 in accumulated amoritization) $ 4,417 Loan Receivable- Officer $ $ 6,226,532 LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Acounts Payable $ 2,251,177 Accrued Expenses $ 1,107,790 Prebilled Revenue $ 1,129,792 Sales Tax Payable $ 12,154 Loan Payable-EAB, current portion $ 100,000 Due to Affiliates $ 535,654 Due to municipalities $ 206,888 TOTAL CURRENT LIABILITIES $ 5,343,456 LONG TERM LIABILITIES Loan Payable - EAB, less current portion $ 320,853 STOCKHOLDER'S EQUITY Capital Stock $ 20,100 Additional Paid in Capital $ 281,175 - Retained Earnings $ 260,948 i i $ 6,226,532 Notes: (A): Actual; (E): Estimate Page 1 of 2 3/3/99 CULVER AMHERST, LLC PRO FORMA BALANCE SHEET PRO FORMA STATEMENT OF INCOME AND RETAINED EARNINGS YEAR ENDING DECEMBER 31, 1998 COMBINED STATEMENT OF INCOME AND RETAINED EARNINGS PRO FORMA REVENUES Revenues from Operations Cost of Sales GROSS PROFIT EXPENSES Selling and Administrative INCOME FROM OPERATIONS OTHER INCOME Management Fee Interest and Other OTHER EXPENSES Loss on invest in El Nino NET INCOME BEGINNING RETAINED EARNINGS (DEFICIT) ENDING RETAINED EARNINGS Year Ending (E) 12/31/98 $ 15,056,025 $ 11,666,263 $ 3,389,762 $ 3,323,187 $ 66,575 $ 83,670 $ 69,730 $ 20,000 $ 199,975 $ 60,973 $ 260,948 Page 2 of 2 3/3/99 Financial Statements CULVER AMHERST, LLC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 1997 CULVER AMHERST, LLC PRO FORMA BALANCE SHEET PRO FORMA STATEMENT OFINCOME AND RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1997 Year Ended (A) { 12/31/97 r COMBINED BALANCE SHEET PRO FORMA I ASSETS CURRENT ASSETS Cash $ 988,759 Accounts Receivable $ 2,173,870 Work in Process $ 693,315 Due From Affiliates $ 171,516 Prepaid Expenses $ 28,802 Loan to Affiliate Employee Loans Receivable $ 15,783 TOTAL CURRENT ASSETS $ 4,072,045 PROPERTY AND EQUIPMENT, (net of $43,681 in accumulated depreciation) $ 625,919 OTHER ASSETS Security Deposits $ 55,740 Investment - El Nino $ 15,000 Loan origination fees, (net of $83 in accumulated amortization) $ 4,917 Loan Receivable- Officer $ - $ 4,773,621 LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Acounts Payable $ 2,187,352 Accrued Expenses $ 529,996 Prebilled Revenue $ 722,757 Sales Tax Payable $ 10,876 Loan Payable-EAB, current portion $ 100,000 Due to Affiliates $ 171,516 Due to municipalities $ 288,876 TOTAL CURRENT LIABILITIES $ 4,011,373 LONG TERM LIABILITIES Loan Payable - EAB, less current portion $ 400,000 STOCKHOLDER'S EQUITY Capital Stock $ 20,100 Additional Paid in Capital $ 281,175 Retained Earnings $ 60,973 $ 4,773,621 Notes: (A): Actual; (E): Estimate; t 3/3/99 Page 1 of 2 CULVER AMHERST, LLC PRO FORMA BALANCE SHEET PRO FORMA STATEMENT OF INCOME AND RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1997 COMBINED STATEMENT OF INCOME AND RETAINED EARNINGS PRO FORMA REVENUES Revenues from Operations Cost of Sales GROSS PROFIT EXPENSES Selling and Administrative INCOME FROM OPERATIONS OTHER INCOME Management Fee Interest and Other OTHER EXPENSES Loss on invest in El Nino NET INCOME BEGINNING RETAINED EARNINGS (DEFICIT) ENDING RETAINED EARNINGS Year Ended (A) 12/31/97 $ 9,183,570 $ 6,956,323 $ 2,227,247 $ 2,196,489 $ 30,758 $ 50,002 $ 11,535 $ 92,295 $ (31,322) $ 60,973 Page 2 of 2 3/3/99 n Financial Statements CULLER AlV HERST, LLC FINANCIAL. STATEMENTS I CULVER AMHERST, LLC PRO FORMA BALANCE SHEET PRO FORMA STATEMENT OFINCOME AND RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 COMBINED BALANCE SHEET PROFORMA ASSETS CURRENT ASSETS Cash Accounts Receivable Work in Process Due From Affiliates Prepaid Expenses Loan to Affiliate Employee Loans Receivable TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT, (net of $8,792 in accumulated depreciation) OTHER ASSETS Security Deposits Investment - El Nino Loan Receivable- Officer LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Acounts Payable Accrued Expenses Prebilled Revenue Sales Tax Payable Loan Payable-EAB, current portion Due to Affiliates Due to municipalities TOTAL CURRENT LIABILITIES LONG TERM LIABILITIES Loan Payable - EAB, less current portion STOCKHOLDER'S EQUITY Year Ended (A) 12/31/96 $ 101,245 $ 1,496,650 $ 76,525 $ 50,820 $ 6,538 $ 1,731,778 $ 41,248 $ 7,167 $ 65,000 $ 1,845,193 $ 1,075,411 $ 644,567 $ 94,447 $ 1,814,425 Capital Stock $ 100 Additional Paid in Capital Retained Earnings 1$ 30,668 $ 1,845,193 Notes: (A): Actual; (E): Estimate; Page 1 of 2 3/3/99 CULVER AMHERST, LLC PRO FORMA BALANCE SHEET PRO FORMA STATEMENT OFINCOME AND RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 COMBINED STATEMENT OF INCOME AND RETAINED EARNINGS PRO FORMA REVENUES Revenues from Operations Cost of Sales GROSS PROFIT EXPENSES Selling and Administrative INCOME FROM OPERATIONS OTHER INCOME Management Fee Interest and Other OTHER EXPENSES Loss on invest in El Nino NET INCOME BEGINNING RETAINED EARNINGS (DEFICIT) ENDING RETAINED EARNINGS Year Ended (A) 12/31/96 $ 6,633,619 $ 5,719,124 $ 914,495 $ 916,660 $ (2,165) $ 29,167 $ 13,236 $ 40,238 $ (9,570) $ 30,668 Page 2 of 2 3/3/99 a - Street Furniture Designs The following pages illustrate some of the designs available to the City of Huntington Beach. Although these designs are very contemporary and attractive, Culver Amherst is open to alternative designs for Huntington Beach. We welcome the opportunity to select a design which fits the specific needs of the City. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 ..,..:.. r ............ .,............. ...m,..r... ...a.>~s_y s', a rr,., � a..a..a.:,:1 �......� :s.' • w...err w .. �. 4.+,..r� r. j...r+N ``—`^• :+:a - . a r M . •,� •,, �,.,. r-, .. s . . CULVER AMHERST Bus Shelters 1i .,h�,r�,:1.% ',�. �'p.,t,' : /, %r.dvt"e ... "1�...a:a._.. , �...,,.•FE av �;�, .�-. ,gN.' °, „p ..Ai'i; ,. ., .. " •.,ill! dkNi��r,nq`h';Ad;4^i,+At $w1�i�iv'rEz{�'''�,sY';_�. rF� ,gf�',,'tl ij+N,$'�Ma�l�l,�+�y'm,hn .,�ir4r1CAt�t�a'r®,a"�•� ;r.hiI4. '�'Ynsfll���fi�,'Mad"M,AraAy`MM`gy,wrif�en�,di'h' .Sw,,:iit i`?asiya y+'�7+"i.7`♦ ^.�4b:'.,�t�"f'� �w u d hFi�t,rf+'F�'''"a'C.aa<Vi.�'t?tda�y'�i,r9_,d;,'rr«,x„',e.M.,�,A�.�b'7„�'i4�yRr„ d.d��qk„',.}�,Atqysiyr'+,. ip R" )r, ' .`�.6' `yaa��yekPY°F�, rr'y�k�vk�+;J�t',%![�r1"1"�,p,6aS,�l.*..y"1�ePd, �m°v�f'�,!k;'.�}"!1uC7d"S'J"J`"C�Y,tt✓^.�'k.�.{"�'r�"s'� 'dJ'�p!'P ,��'"t;,�a�L`p"'fl�� e'h*, 'yp' ARMS ' t1 i vFn'�, ;•�'d��r:�" %�' �i'pa�',g��E., '..�'��;�,•'a�C,/µp' t.I 'P;'Ra�`riy•r-ij',4tl���'.fiAr r' a . ;. f 1 y, �1 ��` 1, +y"� r•, . �, �, ',,'F � o-,�, ``r�� 33}if+i',vti,`r!°'1y^ v �� l�.Rf j �" }�yy � ',"{�'^"���: ,�. r *y"''�y�'.xb "q�r f ' �:/' "+•el(; § o fu^;^I, � v,9 �, S" a, ��p;}.3 r'f � �.- . l" •'. " ,J.��.vr,... �'.. '� : � �f,! ^r i? � `tea An� 1 S d �,41jf; I'^,�'S 0 � y�"7.'i4nk'4 � ����5.• .. � tl� �'S ,,y ��a}. w g.,,i.' Sip fu 3'ygGj r, St 8iS - � � � yy+ 11 aty��arkgVlnme r T ""'h �r f � f a ���,%�+�'+ s;^ ft r r �"r>�yer,41' rf i � '� �jf ',ki��i �",°? 'i ' r,� a r"I + ,rk� •°^T„�at 1 y 4 a� } r k v �^8 mr kflar r •:��i f1Y. r�' . ' -�, a '" 4� qpf' ySi.�a 4i a. ,dl! l.•, i'!Y �,. ?dry d� J ,. 7iyr •� �, """r a iT'J a ,a"FF'a} , rL„? k ,a. ';' '"" n t •a J, a�j r+ 4 +�, ��''�i 3'•r t .d �- �y'!k "L`+t'w ,�,y� w �r;,ai �� ,+J, PRr 1t n "r; �alo,¢�k :.1f4• A" u'yy�r : �a � - PA 9+ '"r a e^� i J• r � f ^ � �'k"'",y*«w. :,�'C � � ..w'i'r♦r�iC2„�r' �xr'�� F�F'' .. ' ' �a� ' -h" ��t'r � � i f,,yr �� R�Nrvi� F � � i�i., a•'�1„ r�'.-Jii _ ..w �._. «.., .:i(q x �1 .,�..�i.�.,.,wr..Jlnr '��' I• pr,,.r';��r�'� [, ti� r�,,• �, ,.., .., ',. ..'S,, _P�+ '�'��ei #' ,ii erti r� i �+i.:. u, • frY ��+ ir',, �" � .M, s��4 _, , a�i+,',; v.„r" ,� r�.,... ,,r, IT 1,K� wa+w v„+�irp bk474�a 114TI i f (r, w. .... 5�i.�+A�� � 1(N"�� �+� �y � `4 ' � . i� �+ . wF. � • ,i d 3, �" �e�rdh, ."r�%Wi"r, aer Fzip,. i ye 'b� f • . "'udL«PW.�.Ura..,�.+w ^^44ki }i4. �r�� �1' i c��i�t.,r,i •#+d"�o� ��',����� 7?dat�� , .�." i x�a, ,f Lrc"�4M1k7�ia_ r � �" + yy � �;,�: d ;�ya "`�rr��r f �a! +;kd� ,'��"� , 'yy; rn ''+V'.w3e"t, . a '� � r w.n•^sue' �� ea '�7 �`4S'� r ,�y'�'�'"a i�r �aC kar frw �, � ��, x � �+,� ti, t 7�t r �F� � ,, ,• '+'� e� r kC� r r N na; '� Mqq f ry '. 1F "• c, ; i � k ;+- r > t, r. I' l � Y` ,�ti, t r. t'i Y 't+•,R ww i �t t+ + v�Ri tra �ti `ti � . ( � ' ti 5 � s� ';, ;,� � fit' � s i .'�` 7 :jif, °t,y�.� ' .� t•Z����. ������`�"!� •�'( �;�• � ` ��A'�vrP }3U��'�'r�,,x �9 � ��.�t ,� „,�y' �,im� �'; {'. �' ��, �'�?°M`�'�'�.�H�Ma �r�f � a"• ��� f� vv,� ., � �'�tnaw .k.r� �" „k�aa�i " '�E�n �• ���'� wgr,� 'y,+�", "+�- a ,,.,rM� � "��.,, tea• ���,yW � ---- tY-t® � 104E1tUOG0.E0R ` a EI 1 Bnvaa 1:lltlOCa • - r'a? too _ IRaw a r-n Ste r F-r r 1-a J/a• 7 ENO FlAt BAR �•�• �- �� _ �� END FIAT t Roos' TRIM Bnf. y - . 4- ij [ �! � + j i s ,r >alu evom ee►l, A. s +, � f, ae9*JAY CASE nil tJ'R tEetOio OO7S MIW C� ...�. r r_,. PJKW ATM GLASS CLIP ap o�Ia a to — a w CLAW ep- aatAss a/aP stolck -. PCs Sam SWT X, SIDE O"ATM a e► BUS SHELTER � � r � \ �aMat� a 7� fir •�. .z` ti ?F`c �'�T� # ,'o T'bs`f - � F% Ej ' ..�� � 3 ,�•, t '{PAS>'qµ� � f4 �' , •"� 4 ? < _ Yr 'r � � �°/k b jr'16�Y' .i•1 j � r 1 �',; N3 � i1 �t• if it t. a �� _ �t �. 'f�A }dr Y J'• �`!' YY .p .1 � � � t X.I. � ' +' y�' t '. t r s , �%a i13.. I� ���1' t�R'��:,`I°,•i114%'�t,1.�.,j�F'w' t ��iu�l������rl+��.:"m s�3,. .i,s«i:.�; it� ' l , ` .t. .� " C:i P3P',fL9.'.9 �.� er�rT •.�. � s Y .,. �.. .. ,. r i , r' 3 i • , • r,�, r . ,.nee a' , - , i r ^Ab ri 7E ,r a °o•egk 3 -'� t1 - 3 l . s� i i r �aeri Mt3fi^tir �U�� �k ry • �18 U,S S lH E" L T E rti Az WL op - ___ mono' BUS S �H 'E LT E R, '—�---r' — sal ....,...r s:�:. ..�.:•.� � .. � �,. C 9 xW "•Y74 3/2` 14 a� UIL SW FRANC (23'x7ID" COPY g1E) 1 AUlit s3cN FRAiIE � I Ans- ' 1�' DtiE11Si0i�) OWL a TAP MR A 614ZZf• J' (SiA3 F.Fi. Pdll. S�EYV • �� $3 3/8' PiAS11C 1Y000 :'-4 1J4' Lao / PLASW iI�OR :0 K 3aOCArTM TO FLAY CARL4M SI tS S� t A 4 iVOR&i SLAB OF 'lwbEa ` 3/a, -18 H.K. CAP SCREIY M-3 3/4' 1 1'xl' /� smm ANME 4's2s s/8'x3/8t' 3� 1'-3 3/2' ?O BE P..Amo AT sonu1 OF BEND LOLtt ti >'•LAT 1YASHER 4 a ANCRIM 6'-iCtD StEEi PLAT BAR O 2 O A x 3/le swa. WK (4 RED Put KNCH) iROMi EL3E1/ATiOit FM 11MAM" ' I/4' hUT TALU M11; = 1'xl'x1/0' 70 P►AX BEFORE 5'-Ip'LP.KTALOW S FAE 1181'c IS 1 SM AN" ik PLACE 3/a• J-4.,F-:e-6 3,W INA. ME 3JI8• 4` 1+ .--- TCfi CORNER �� �Hvo FLAT onK SIMOF ANGLE A -A - - - - DETAIL A ADVERTISING BENCH (A) 7' DAY BENCH UP MWATM u ' 11� _ .. .. :., .,..: . m1:1 a .n vrr ,.w:1y. .. ax'x�. �.•... !., _, 4t:_,n �._ ., :'s,n"6 hnSS+. tn_:: ..., ." 'B17R1�.76R'S!T^".^.3+..a.. pw.,>„�e sg • - rt -,;:f aw .. i? ro l - r a•�.. .:� si . �e ",rf•A a� m 51 • P a �y��,+ ,.r'y��i _l3rt� - - _._ "au+...J Wuu.uus ww'.ti um.lulnvm �.. •. :zt•;' : r : -. •.. •s..4Rs,C arty ;.:+u:WxNtM44i"ANL�;.ul{yj�' — � - •.,,rw J .t.wtY.u.. roMJ..A�n _..� ••:.,,M,en �. T' n. N3.7, §. z*4na+vtk�D tr "C"'G'hL •.... roSN •'7 ". 3:4t2n vile i I r - - '. ,^..,..r�F:•,± r�Yi.,,:-1•rwwy,.7�.�s�YdF F ,.w� '�'iG��fii'� _ �"•}�`i ..WMliw y U. A 4� Nf 1 SnCMCAMONS DIIMIffi'i3m0i+i3 & WmGnn OaetaDt heir 3323" Seat height 14.43" Aim height: 26.7r Owd depth:261S" Anchor bolt hole diatneter:.50' Chatbetow sbows length dimensions A and B (bah We to bolt hole cement trued In inches). The eorrespondMg mtmber below represents Its net rrclghf(measured in pounds). All dimensos no approximate. This dnatt should not be used to set snchor bolts. 4' St . 6' 8' 14' 7 • � " 1 p I wt hr 118 .128 136 3W M&W TBD • ttrfghe 187 207 Spe ft latgdt (see above chart for standard lengths) by adding length to end of model nntnber (I.e. B.164 for the six foot modes. ® SwW�rd k ng& Ci Oastent tethgte (consult factory) bk1,MLANEOUS Boehm shipped unmembled (KD). Anchor bolts •1 included. STAmmom Cast gray iron ASrA A.t&76 Qw 30 FUMH Polyester powder coadng .003'-.005" coverage ❑ Deep Black (standard) 0 Bench Green (standard) ❑ • Other (consult factory) WOOD 9 straight slam 1.0625' x 23V finished distension. Kiln dried. dear all sides. Drilled. sanded, dtumfet ed ends. All corners eased. .0 Standard wood 0 Other Lconstdt factory) WOOD RrDm 0 Nattual ❑ Other (consult factory) HARDWARE Stainless steel 1/4-20 nuts and bolts. Stainless steel #t10.32 screws. Sieel .S2S'diameter de rnd. Aluminum . i23"x 1.Mr ctoss braces. NON ADVERTISING BENCH (B) 7' CLASSIC CITY BENCH AVAILABLE IN WOOD t STEEL ALUMINUM OR RECYCLED PLASTIC B E .N 'C HAm r 41 4.000 r • , M s f•• { a it f • SPEMCATiONS 1DmiS om & 'Wm(;v S Cretan hetgbt M.= Seat height: 14.43- Ann height 26.75 0rerolldepdr263S Anchor bolt hole diameter. —W Chart below Am lend dimensions A and B (bolt hole to bolt hole etxtreta atessnred is inches). The corresponding nootber below represents hs as wdghr (measured in pounds). All dhrtensiom arm ap;m (mate. 'Chas &bare should not be used to set anchor bolts. 4' 5t 6t St 10t 71 g aM mm Aw I 1 wetyhr 118 .128 136 w THD IX* Wo (sea above &!tart for standard lengths) by adding length to I of model ftmtber t3 (Lc 1" for the sex forte ntodell. 6 Standards Cl Comm ((consult factory) �+hscsLY.htMUS Beaches shipped armssembled (0). And wr bolts 1 included. S. d STAKMONS Gist gay iron AMA A•4-76 Class 30 Fmm Polyester l t powder ring rc coa .003"-.003' ems& 0 Deep Black (standard) 0 Bench Green (standard) 0 Other (consult factory) WOOD 9 straight siats 1.W2.5" x 2—V finisited dinnension. Kiln dried. dear all ddes. Drilled. sanded. draatfeted ends. All corners eased. 0 Standard wood 0 Other (commit factory) WOOD Fran 0 Natural 0 Other (consult factory) HARDWARE Stainless steel 1/4-20 nuts and bobs. Stainiess steel #10-32 strews. Steel .623'diameter de md. Alwnirtam .123'x 1.00'et»ss braces. ADVERTISING BENCH (C) 8' CLASSIC CITY BENCH * AVAILABLE IN WOOD, STEEL ALUMINUM OR RECYCLED PLASTIC ..�k El ADVERTISING' BENCH 0`1811"ll-AM Oro iku tie V44 4 -A� s:t: i $t. Mesh Bench (advertising) BENCH B E N C ,H Ir _ .. X • ti • 1 l�f W W �, U ADVERTISING BENCH �►i )q ;��s�k,�Fti'yi��, � S!. fir. � ��(. � '1: ,�r'-,, I f'�'A �' ,. f-Mt'�► } r. MVI IVA uz in IC GE RII: U's 600.0LD iMTRI b. `iARIOILDINa BTEAIC HOVSF Y �;NIM"�Tr' ..'A rr � -MS�+ryw� At:, pL��♦�{iq+�'9v A"p ,w,cN �{,� L 'a., n. ej. l .•V- A'xl 11NI. w.J'l1M�Ipy.wrS J.•,. -? � M�('a4r.} � 'f� k+.�..1'J ��'Iro• �, .{ T{rM ;l 1 I � � � i 1e •' � � cif ..f' ... � 1R�,� ... �-. ADVERTISING. BENCH ' "OAa f • �`•' (iyr�,<u{x'�Y 1 fY,�,vy�„i�.M,Rr "1a�'�1� r.r•, K � i°�'F MR .Mu.w..?...w a.. aia�,.. .,$, :' •'; --in ..:.. �:�.i. ^,�..q�.�u5a�. �...•� N. ,. :. R'a _i {� GET S""RIOW"m®. * x},• :y��j Y ,t ? r 640OtDEo�rrrrrRn. yiS , R, 6 EABlunDia6 s acg►fou #�`'�'.°.,�a-:� ��`i4afa•.4,r ��t a<�.,.�.,t -. ,� {Nynfi, 'fi�.d'c`�jc{H'S"nry rv.. -.1,:.�n I. ylfy.:ym 1. 4t • 'i}• +fir '�Yt M'.. �i. +f � 'LZ�•.t, �.. ,;.ais.: 1 k.•...<.L,IXc 1; 1 Y •s ?rAz � ,>��Y{,,�� "Stsr�•1j1�` 1� %• yr��yw���3fs"'T•�"M4"a�i•7•!Ya �`*r W .' .... .. .. W y L .41ga-05- 1999 04 - I TOTAL P.02 Wayfinder Systems As part of its effort to improve the streetscape in Huntington Beach, Culver Amherst is willing to _ provide ten (10) wayfinder structures similar to the ones pictured in the following three pages. These would be manufactured and installed at no cost to the City. Culver Amherst will work jointly with the City to design an attractive, informative wayfinder system. The wayfinder system is optional and installation of the wayfinder system is at the full discretion of the City. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 WA.YFtNDFNG EXAMPLE It %mll- m WAYFINDING EXAM-P,LE 2' tf . ... ....... `!Fl ij WAYF[NDING EXAM,PLIZ 3 4-01 ®R I Xis -4 P 31 � IN Information Kiosks ' The Information Kiosks illustrated in the following pages are also available in a number of alternative designs and colors. Culver Amherst proposes to install a number of these kiosks in the City of Huntington Beach. One panel of the kiosk can be dedicated to community news, events schedules, public announcements, tourist maps, etc. The Information Kiosks are an optional component of Culver Amherst's street furniture program, at the discretion of the City. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP a March 5, 1999 ;i � : a - r. �, 7 l'r &tW� 4r%Yh, r`,✓ � k. 5 za d, �1'A iI! i.i ' T Ul In o r r. jo i �C ", f'. t ;Nhr •. ?,•F: z ,f. � �'dr: 1+ �4�rwti d �1�� d4ya'r to ! •d �{ � { 1 4.`?! � 1i 4:. 9 �'� rt 1 y �IX�"5t tf a ff ��% bryy'. '•H % : # ao! i7 ,'iid it 'der C t �.,". to/• �, Kx t1� F r3�t.M /'�Ay+tb �i,t a:r mow- am iweumr . �x N,SO1�4 N01'..LVW'HO'A`N1 i - Newsracks As part of its effort to improve the streetscape in Huntington Beach, Culver Amherst would like the ' City of Huntington Beach to consider the installation of its modular newsrack system. Photographic renderings of the product are featured in the attached pages. i. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 j +r r 7? , Al '1 If .'� y, K. r F f �.r t" i o Sidewalk View .no 1 CA • - - -- -- - C'ULVER r. ...... �*,r • 6 BOX NEWSRACK I • 2 OFFSET CRESCENT AD DISPLAYS ( 6' X 4' ) CULVER AMHERST, LLC History of the Proposer's Relevant Sales & Operational Experience Chris Culver Shelter Media 1983-88 Built 1,000 bus shelters with advertising in the Los Angeles market. Shelter Media was sold to Gannett Outdoor in 1988. Transportation Displays Inc. 1991-94 As Executive Vice President at TDI, Mr. Culver redefined sales and marketing and in three years grew revenue from $110 million to $175 million annually. Mark Van Fossan Patrick Media — Eller Media As President of Patrick Media, Mr. Van Fossan was responsible for developing the company's growth and expansion into the shelter business. Mr. Van Fossan ended his career with Patrick Media when he orchestrated the sale of the company to Eller. John Hall Shelter MediaGannett Outdoor Co. 1983-96 As Director of Transit, Mr. Hall was responsible for transit properties in Southern California, including the revival of the bus shelter franchise in San Diego. Prior to joining Gannett, Hall negotiated several transit franchises, including the one in Huntington Beach, CA. Outdoor Systems, Inc. 1996-98 After the acquisition of Gannett Outdoor by OSI, Mr. Hall was named Director of Transit in charge of Public Affairs. His expertise and dedication made it possible for OSI to secure additional key properties across the United States. Mike Culver Shelter Media/Gannett 1985-97 In his 12 years of national sales at various markets Mr. Culver has sold more shelter advertising to more national clients than anyone. Mr. Culver's experience started in Los Angeles and he has built shelter sales operations in Atlanta, Cincinnati, New York. Culver Amherst New York Apple Bus Tours The firm owns the exclusive rights to sell Super King and Super Tail advertising panels on the exterior of 60 Double Decker buses in Manhattan. t Culver Amherst NY -NJ -CT Bus Shelters Culver Amherst has achieved an 85% occupancy rate in its bus shelter franchises in New York, New Jersey and Connecticut. This success is largely due to the firm's strong relationships with companies such as Chase Manhattan Bank, Disney, Avon Products, i . Snapple, Orion Pictures, USPS, Bell Atlantic, Kinko's, Continental Airlines, Armani, Versace, Nissan, Honda, Valvoline and others. t Culver Amherst New York City - Walls & Billboards The firm has secured over 50 leases for outdoor advertising sites and achieved a 75% occupancy rate. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 Clients & Cities Served by Culver Amherst 1. List of Municipalities served by Culver Amherst 2. Franchise History & Compensation By Market 3. List of Advertising Clients Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 MUNICIPAL, AGREEMENTS Culver Amherst currently operates transit shelter advertising franchises in the following municipalities: California: Newport Beach Laguna Hills Laguna Beach Tustin Sunset Beach Santa Ana Foothill Ranch Note: The Company operates bus shelters in these cities under agreements with the County of Orange. Connecticut: Bridgeport Waterbury Hartford Naugatuck Valley Norwalk New Britain Stamford New Jersey: Bloomfield Elmwood Park Verona New York: Albertson Baldwin Bethpage Carle Place East Meadow Elmont Flower Hill Franklin Square Freeport Garden City Glen Cove Hempstead Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 West Orange Union Fairlawn Lyndhurst Cedar Grove Hempstead Village New Cassel Island Park New Hyde Park Jericho North Merrick Lake Success N. Valley Stream Levittown Oceanside Lido Beach Plainview Lynbrook Port Washington Manhasset Seaford Massapequa Uniondale Merrick Valley Stream Mineola Westbury Munsey Park F'I2ANCHISE HISTORY & COMPENSATION The following is an overview of Culver Amherst's current bus shelter operations, by market. Figures in parentheses represent the year the franchise commenced: California: Newport Beach Laguna Hills (1996) Laguna Beach Tustin Sunset Beach Santa Ana Foothill Ranch Note: The Company operates bus shelters in these cities under agreements with the County of Orange. Compensation: Payments are based on flat fees per shelter. Connecticut: Bridgeport (1996) Waterbury (1981) Hartford (1983) Naugatuck Valley (1983) Norwalk (1981)) New Britain (1993) Stamford (1980) Compensation: Payments are based on a percentage of revenue only. New Jersey: Bloomfield (1997) West Orange (1998) Union (1998) Elmwood Park (1997) Fairlawn (1997) Lyndhurst (1998) Verona (1997) Cedar Grove (1998) Compensation: Payments are based on a percentage of revenue only. New York: Albertson Hempstead Village New Cassel (1997) Baldwin Island Park New Hyde Park Bethpage Jericho North Merrick Carle Place Lake Success N. Valley Stream East Meadow Levittown Oceanside Elmont Lido Beach Plainview Flower Hill Lynbrook Port Washington Franklin Square Manhasset Seaford Freeport Massapequa Uniondale Garden City Merrick Valley Stream Glen Cove Mineola Westbury Hempstead Munsey Park Compensation: Guaranteed Annual Payment vs. Percentage of Revenue. 1997: Exceeded guaranteed payment by 560% 1998: Exceeded guaranteed payment by 757% Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 Partial List of Advertisers (March 1999) Public Service Entertainment Media Project Safe Baby Universal Pictures GoTo.com March of Dimes Disney Pictures One On One Sports -AM 620 Hoops For Lymphoma Dreamworks Pictures Mining Company New York City Dept. of Health MGM Pictures Fortune Magazine Cystic Fibrosis Foundation Universal Home Video Village Voice 1-800-TIPS Disney Home Video New York Newsday Pax TV Chancellor Radio-103.5 WKTU etail UPN TV Cox Broadcasting-102.3 WBAB Sephora Parfume Ringling Bros Circus News 12-NY The Wiz i Target Stores Broadway Plays Travel Just For Feet Rent Continental Airlines Modell's More To Love Travelex Kinkos Cats TWA Dial -A -Mattress Miss Saigon Grupo Taca Edwards Food Stores A Beautiful Thing Allegro Resorts Scarlet Pimpernel Hunter Mountain Food Service Lowestfare.com Ruth's Chris Automotive McDonald's Nissan Telecommunications Wendy's Mercedes Benz AT&T Nathan's Honda Bell Atlantic/Nynex Dunkin Donuts Valvoline Oil Centers Motorola Checkers Volkswagen Sprint PCS Domino's Pizza Cellular Plus Consumer Products Krups Sony Playstation Apple Computers IBM RK Roofing Arizona Ice Tea Altoids Snapple Ice Tea Solgar Vitamins Consumer Services Visa US Postal Service NY Lottery Healthcare Oxford Health Plans Finance & Insurance Community Health Network Chase Manhattan Bank Connecticare H&R Block Yale Preferred One NY Life Genesis PNC Bank Wellcare Vision Securities Continuum Healthcare/Beth Israel Allstate Insurance Nassau County Med Center Coldwell Banker Physicians Health Services ReMax Realty Prudential Realty Fashion & Anoarel Giorgio Armani Bebe Guess? Polo/Ralph Lauren Rampage Levi's Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 Steve Madden Geoffrey Beene Globe Shoes Spiegel Bum Equipment Bisou Bisou Versace The Sak Bugle Boy 1. Installation Plan Permit Applications Based on the current bus shelter contract, Culver Amherst would submit permit requests during the 30 day notice given to Eller Media. Culver Amherst would be prepared to install the first 50 shelters beginning May 5, 1999. Culver Amherst would work with the City during the first 60 days of the program to ensure all permit requests were complete. Shelter Installations Based on the current vendor's contract with the City, Culver Amherst is prepared to commence with shelter installations immediately upon the approval of permits by the City and the removal of Eller's shelters. We currently have fifty (50) shelters in our warehouse ready to be installed in Huntington Beach. Culver Amherst is prepared to install bus shelters at the rate of 50 units per month until the City's desired quantity has been installed. To insure maximum safety and efficiency in regard to new shelter installations, Culver Amherst would recommend and propose to the City that Culver Amherst removes and disposes of the existing, obsolete shelter inventory. Bench Installations Based on the current vendor's contract with the City, Culver Amherst is prepared to commence with bench installations immediately upon the approval of permits by the City and the removal of Coast's benches. Culver Amherst is prepared to install bus benches at the rate of 100 units per month until the City's desired quantity has been installed. To insure maximum safety and efficiency in regard to new bench installations, Culver Amherst would recommend and propose to the City that Culver Amherst removes and disposes of the existing, obsolete bench inventory. Available Inventory Culver Amherst currently has 50 bus shelters in inventory available for installation in Huntington Beach. We will maintain this minimum level of inventory in anticipation of the upcoming needs in Huntington Beach, and will commit to manufacturing adequate quantities of shelters and benches once an agreement is executed with the City. The Company also maintains a stock of various bus benches and is prepared to order appropriate quantities of benches with one or more manufacturers in order to satisfy the requirements of the agreement. Commencement of Installations Installation of shelters and benches will begin on the first day that free and clear access is provided to Culver Amherst by the City. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 Installation Plan, p.2 Availability of Shelter Service Culver Amherst intends to provide uninterrupted bus shelter service to the City i and its transit passengers, and will make every effort to ensure a smooth transition from the current vendor to the new program. To ensure a seamless approach Culver Amherst proposes to handle the removal of the current shelter and bench inventory. We will either scrap the old units or deliver them to the current vendors warehouse. Culver Amherst will install new shelters as rapidly and efficiently as possible while ensuring that high levels of safety and quality are maintained throughout the process. When Culver Amherst removes an existing shelter, the replacement shelter will be installed within 24 hours. Electrical Plan Shelters will be illuminated from dusk until dawn. Culver Amherst will apply for and obtain, at its own cost, any necessary electrical service permits from the electrical provider. We will illuminate all shelters in a timely manner as will be agreed to in the contract. Payment of Initial Annual Fee Pursuant to Paragraph 15 of the Franchise Agreement, Culver Amherst will pay the first years' annual fee when free and clear access to shelters and benches is established. As an example, if the City provides Eller Media with a 30-day notice of termination on April 51h, and free and clear access to shelters is established for Culver Amherst on May 5`h, then Culver Amherst will pay the first year's fee to the City on May 5`h. The amount of the payment will be determined by the agreed upon quantity of shelters in the final contract. The same timing of payment to the City applies for the benches and is dependant on the date that the City provides free and clear access to the bench inventory. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 i Subcontractors - Manufacturing Culver Amherst will employ the services of Tolar Manufacturing for a large proportion of its shelter supply. This will be supplemented by the Company's own manufacturing operation in Santa Ana. All units supplied to the City will meet required specifications and standards in regard to materials, workmanship, durability, finish, electrical function and general appearance. Tolar Manufacturing produces bus shelters, benches, kiosks and other street furniture. Based in Placentia, Tolar Mfg. has been involved in the production of bus shelters for over ten years. Bus Shelter & Bench Installations Culver Amherst will complete most of the installation work with its own direct employees. When additional assistance is required due to high volume, the firm will employ the services of Shelter Installation & Maintenance, Inc. of Orange County Electrical Work Electrical work will be completed by Shelter Installation & Maintenance, Inc. The firm is a fully - licensed electrical contractor specializing in the bus shelter business. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 Compensation to the City of Huntington Beach I Culver Amherst's compensation to the City of Huntington Beach is comprised of the following components: i I 1. Standard compensation proposal: 2. Economic Development Centers proposal: 3. Public Service Message Allotment Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 Compensation. Culver Amherst's compensation plan is on a per month basis for each advertising shelter plus a non -advertising bench, an advertising shelter only, or an advertising bench only. Contract Year Guaranteed Minimum Monthly Payment (Shelter + Non Ad Bench) Guaranteed Minimum Monthly Payment (Shelter Only) Guaranteed Minimum Monthly Payment (Ad Bench Only) OR, Percentage Of Gross Advertising Revenue Year 1 $200 $200 $25 25% Year 2 $250 $250 $25 25% Year 3 $250 $250 $25 25% Year 4 $250 $250 $25 27% Year 5 $325 $325 $25 27% Year 6 $325 $325 $25 27% Year 7 $325 $325 $25 27% Year 8 $350 $350 $40 30% Year 9 $350 $350 $40 30% Year 10 $350 $350 $40 30% Potential Extension Year 11 $350 $350 $50 30% Year 12 $350 $350 $50 30% Year 13 $350 $350 $50 30% Year 14 $350 $350 $50 30% Year 15 $350 $350 $50 30% Non -advertising Amenities. The City may request the expansion of the proposed program to include additional non -advertising bus shelters and/or non -advertising bus benches. The "cost" of installation and maintenance of additional non -advertising shelters and benches is outlined below. These costs represent a reduction in the Guaranteed Minimum Payment. Maintenance and repair is included in this cost. $4,500 for addition of a single non -advertising shelter $ 500 for addition of a single non -advertising bench $4,500 for addition of a group of 1-10 non -advertising shelters $ 450 for addition of a group of 1-10 non -advertising benches $4,250 for addition of a group of 11-20 non -advertising shelters $ 425 for addition of a group of 11-20 non -advertising benches $4,150 for addition of a group of 21-30 non -advertising shelters $ 415 for addition of a group of 21-30 non -advertising benches $4,000 for addition of a group of 31-40 non -advertising shelters $ 400 for addition of a group of 31-40 non -advertising benches $4,000 for addition of a group of 41-50 non -advertising shelters i $ 400 for addition of a group of 41-50 non -advertising benches $4,000 for addition of a group of 51-60 non -advertising shelters $ 400 for addition of a group of 51-60 non -advertising benches $4,000 for addition of a group of 61-75 non -advertising shelters $ 400 for addition of a group of 61-75 non -advertising benches $4,000 for addition of a group of 76-100 non -advertising shelters $ 400 for addition of a group of 76-100 non -advertising benches 14. Bidder Information N oj'.M� Signature Printed Name Christopher kulver Firm Name Culver Amherst, LLC Address 141 5' Avenue, 11'h floor City/State New York, NY 10010 Phone 212-539-6104 FAX 212-505-6899 Date March 5, 1999 E-mail Address cjc@culvermedia.com Website URL www.culveramherst.com "ECONOMIC DEVELOPMENT CENTERS" In addition to its compensation package to the City of Huntington Beach, Culver Amherst has developed a component, which would provide the City with an opportunity to generate additional income. Culver Amherst would offer to build and maintain unique street furniture with advertising to generate revenue for specific locations. These locations would be branded "Economic Development Centers" (EDC's) and benefit from the advertising generated from this designated signage. Advertising revenue generated from any street furniture operated by Culver Amherst at the EDC's will be shared 50-50% with the City. The advertising signs could be located at the location benefiting from the revenue or the advertising may be located in areas that are not EDC's . Economic Development Centers could be a valuable tool in funding needed programs like: Youth sports Boys and Girls Club Senior programs Handicap services Other proposed Economic Development Centers could include: Downtown Municipal Parking Structure Boardwalk and Pier Downtown commercial area Other locations to be designated by the City EXAMPLE OF AN ECONOMIC DEVELOPMENT CENTER At recent council meetings we have heard many discussions regarding increasing fees at the City parking structure. If we designated the Parking Structure as an EDC we could potentially generate over $33,000 annually from this program. On the following pages we have given examples of unique signage that may be used at EDC's. We propose to work with the City to design signage for each location. Street furniture which Culver Amherst would propose for the parking structure: Informational Kiosks Wall signs (SEE PHOTOS IN SECTION 6) Bus Benches Projected income from Parking Structure: Average Ad rate per panel per month: $ 550 x 10 ad panels projected Revenue per month: $ 5,500 Revenue per year: $66,000 50% to City of Huntington Beach: $33,000 If the City were to designate 10 Economic Development Centers, the City could generate approximately $330,000 in additional annual revenue. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 Public Service Messages Culver Amherst will make available to the City fifteen advertising panels in Huntington Beach for three (3) four -week segments each year for ten (10) years. The Company will, in cooperation with the City, design, print, install and remove these posters three times per year at no charge to the City. Culver Amherst will also make available to the City 100 advertising panels (within and outside of Hungtington Beach) per year for ten (10) years. The Company will, in cooperation with the City, design, print, install and remove these posters three times per year at no charge to the City. These additional 100 panels will be made available to the City at the discretion of Culver Amherst. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 4 t r, r - i Compensation Summary for City of Huntington Beach r Culver Amherst's total 10 year compensation offer is comprised of the following items: 1. Standard shelter compensation proposal Guaranteed Minimum Payment based on 150 shelters: $ 5,355,000 Guaranteed Maximum Payment based on 300 shelters: $ 10,710,000 T City will determine final number of shelters 2. Standard bench compensation proposal ' Guaranteed Minimum Payment (minimum of 250): $ 885,000 j. Guaranteed Maximum Payment (maximum of 500): $ 1,350,000 City will determine final number of benches 1 3. Economic Development Centers proposal Based on the development of 10 EDC's: $ 3,300,000 4. Public Service allotment Based on 15 panels offered in -kind to the City for three 4-week periods per year (at $750 per panel): $ 337,500 100 additional public service panels per year will be provided to City at Culver Amherst's discretion: $ 750,000 5. Public Service Poster Printing Based on estimate of providing 200 posters (in -kind) per year to the City: $ 300,000 Minimum potential value of 10-year compensation proposal: $10,927,500 i Maximum potential value of 10-year compensation proposal: $16,747,500 t• 1 Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 Introduction Personnel Methodology References Background Photos Experience Customers Installation Schedule OCompensation CA AMMM CULVER A S S O C I A T E S, L T D. March 5, 1999 City of Huntington Beach Purchasing Division 2000 Main Street Huntington Beach, CA 92648 Re: RFP for Bus Shelters & Bus Benches Dear Selection Committee: Thank you for the opportunity to participate in this Request for Proposal for bus shelters and benches in Huntington Beach. The executives and staff members at Culver Amherst bring a high level of operational and sales experience in the bus shelter business. Our Project Manager and main contact for this RFP is John Hall, Vice President of the Western Region. Please contact John by telephone at (949) 766-5701 or fax (949) 766-3731. We look forward to working with you in developing a successful bus shelter program in Huntington Beach. I believe you will find that the Culver Amherst program described in this RFP response provides the City of Huntington Beach with the highest quality street furniture available and a solid financial package comprised of several innovative components, each designed to maximize revenue to the City. Sincerely Yours, Oil, . Christ pher J. Culver President 141 FIFTH AVENUE 11TH FLOOR NEW YORK, NY 10010 212.473.5600 FAX 212.505.6899 ADVERTISING ® COLLATERAL ^ MEDIA PLANNING /BUYING ® DIRECT MAIL o MULTIMEDIA ® PROMOTION D COMPANY OVERVIEW I CULVER AMHERST I CULVER AMHERST is a rapidly growing shelter advertising company known for innovation and excellence in the development of out -of -home media properties. Culver Amherst specializes in municipal transit advertising, newsracks, wayfinding, mall advertising programs and sponsorship opportunities. The Culver Amherst management team has been involved in the development of street furniture programs for 23 years, starting in 1976 with William Paray's development of shelter programs in the state of Connecticut. In 1983, Chris Culver and John Hall pioneered the first public/private bus shelter program on the West Coast under the Shelter Media name, building approximately 1,000 shelters in the Los Angeles Market. Shelter Media was sold to Gannett in 1988. Through a recent acquisition, Culver Amherst has re-established its roots in Orange County and currently operates over 70 shelter displays in Orange County as well as a shelter manufacturing operation in Santa Ana. Our Orange County based management team dates back to 1985, when Shelter Vision was formed by David and Aaron Ravo. Now a part of the Culver 1 Amherst team, the Ravo's manage, under the direction of John Hall, the firm's bus shelter manufacturing, installation and maintenance facility in Santa Ana. By operating its own manufacturing facility in Orange County, Culver Amherst is able to maintain tight control over product quality and provide rapid response for repairs and upgrades in the field. In addition to participating in RFP's for bus shelters and benches throughout the state of California, Culver Amherst currently operates a long-term contract to manufacture, install and maintain advertising displays at Union Station in Los Angeles. The firm has also secured the rights to sell sponsorships and advertising throughout the City of Long Beach in conjunction with its partner, SMG, which operates the Long Beach Convention Center and Long Beach State Culver Amherst currently owns and operates over 1,400 shelter advertising and bench displays as well as 200 non -advertising shelters in the Tri-State area of New York, New Jersey and Connecticut. The Company's Tri-State operation covers a population base of over 4 million people and includes agreements with over 45 municipalities. The Company is also developing new street furniture programs in Washington DC and Maryland. In New York City, Culver Amherst owns the exclusive rights to transit advertising on double-decker buses. It also is the largest operator of jwall mural advertising sites in Manhattan. Culver Amherst's out -of -home portfolio includes a partnership with SMG, the country's largest stadium management / advertising company, for the development of exterior signage and kiosk advertising in over forty stadiums under SMG management. The firm is headquartered in New York City and has field offices in New Jersey, Long Island, Connecticut, Los Angeles and Orange County. It has also reserved a space for sales, operations and maintenance at 15400 Graham Street in Huntington Beach in preparation for the awarding of the bus shelter contract. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 �� me w""gym m m m m m" M� m m 11 H Project Overview Culver Amherst is pleased to have the opportunity to respond to this RFP for bus shelters and bus benches in the City of Huntington Beach. Our understanding is that the proposed project encompasses the following components: • Entering into a ten-year franchise agreement, for the provision of transit advertising services in the public right-of-way, with the City of Huntington Beach. A five-year extension may be granted to the vendor at the end of the initial ten year term. • Installing a number of advertising bus shelters, non -advertising shelters, advertising benches and non -advertising benches in the public right of way. The quantity of each of these structures is to be determined by the City. The list of potential and acceptable sites for such services is to be determined by the City. • Providing the most attractive and durable shelters and benches to the City as possible within the financial constraints of the project. • Ensuring as smooth a transition between the current vendor and the new program as possible, and providing uninterrupted transit shelter service to passengers. • Selling bus shelter and bench advertising to local, regional and national clients at the highest possible rates. We understand that our goal is to maximize revenue to the City. • Providing a high level of maintenance, cleaning and repair service to the bus shelters and benches provided. • Providing a portion of available advertising panels to the City for public service announcements. • Providing the City with the greater of a guaranteed payment vs. a specified percentage of advertising revenue. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 r] i" g!Y Notes-- D r as i! P U F Ll H Ivey Personnel Biographical Information Christopher J. Culver President Mark Van Fossan Director Franchise Development Paul Theisen Executive Vice President John Hall Vice President/ Western Region Project Manager Mike Culver Vice President Director of Sales David Ravo Manufacturing & Operations Orange County Aaron Ravo Manufacturing & Operations Orange County Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 d I d- U U [1 i1 Christopher J. Culver President Chris Culver brings more than his name to Culver Amherst, L.L.C. His experience with out -of home and other media forms began in 1983 in Los Angeles. It was there that Culver launched a new out -of - home media company, Shelter Media, creating bus shelter advertising in the U.S. As Executive Vice President, he quickly built Shelter Media into a multi -million dollar company and sold it to Gannett Outdoor in 1988. After the Gannett acquisition, Culver went on to expand his knowledge of marketing and media when he formed a marketing and sales company that developed signage in National Football League stadiums and created new sales venues for the California Lottery. Culver's expertise went international shortly thereafter when he assisted in the launch of the UK Charity Lotteries, the first major lottery in Great Britain. Culver supervised over 125 sales specialists in London that secured 6,500 CTNs, pubs and supermarkets to sell the new lottery and produced in excess of $100 million for this venture in the first year. Culver's next challenge brought him back to New York in 1991 where he was asked to rebuild another media company. As Executive Vice President and Director of Marketing Sales at TDI, Culver redefined sales and marketing and in three years grew revenue to $175 million annually, up from $110 million. TDI is one of the strongest media companies in the country today. Upon forming his own firm in 1994, Culver proceeded to secure the rights to several municipal transit shelter franchises. In 1998, Culver Associates acquired Amherst Media to form Culver Amherst, LLC. Under the Culver Amherst banner, Mr. Culver has formed a strong management team, focused on the development of progressive, high quality bus shelter and bus bench programs. With street furniture franchises in New York, New Jersey, Connecticut and California, Culver Amherst is recognized as a leader in its field. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 Mark Van Fossan Director Franchise Development As the former President and COO of Patrick Media Group (now Eller Media), Van Fossan brings a strong finance and operations background to Culver Amherst. Shortly ' after assuming the President's position at Patrick, Van Fossan led the firm's foray into the transit shelter industry until Patrick was sold to Eller Media several years later. E d I L Prior to Patrcik Media, Mr. Van Fossan worked in the Corporate Finance departments at Lehman Brothers and Paine Webber. Starting as an analyst and graduating to associate and Vice President, Mr. Van Fossan concentrated on providing strategic financing and mergers and acquisitions advice to companies in the media and communications industry. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 Paul Theisen Executive Vice President IJ Paul Theisen's background and qualifications include over ten years of sales, marketing and business I development experience. He currently serves as Executive Vice President of Culver Amherst, L.L.C. As a founding partner of the firm, Theisen has been instrumental in securing media properties and has led the firm's effort to win municipal advertising franchises across the United States. 11 fi j n�, d In addition to ongoing franchise expansion efforts, Theisen is actively involved with designers, manufacturers and municipal administrators in the development of new street furniture products, including next -generation bus shelters, bus benches, informational kiosks and wayfinding systems. Theisen's prior experience includes over seven years in the sporting goods industry, from 1988 to 1995. As Director of International Sales & Marketing at Cybex, a leading manufacturer of fitness and sports medicine products, he built a worldwide distribution network with representation in over 60 countries, and established subsidiaries in Germany, Belgium and Japan. He has also served as a retained consultant to manufacturers, marketers and import/export firms in the sporting goods industry. Theisen holds a Bachelor of Arts degree from the University of San Diego, and an Masters degree in Business from the American Graduate School of International Management. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 F-i k LJ G I John Hall Vice President/ Western Region Project Manager Mr. Hall began his career in the outdoor industry as V.P of operations and Public Relations for Shelter Media Inc. In the early 80's, he was a key figure in the acquisition of the Los Angeles transit shelter and bench franchise which ultimately lead to the installation and maintenance of over 1000 structures in the southern California market. This market became the most successful and publicly accepted program in the country, based on the foundation set by Hall. His ability to attract major advertisers in the Motion Picture and Apparel industries led to the overall acceptance and ultimate success of the medium on a national level. In 1998, Gannett's outdoor division purchased Shelter Media and its holdings. Gannett appointed John as Transit Coordinator for all of Southern California. His responsibilities included inventory control, national accounts supervision and Public affairs. In 1993, John was promoted to Director of Transit and given the task of reviving their San Diego market. For the next three years, record sales were achieved. In 1996, Outdoor Systems purchased Gannett's outdoor division. John was retained as their Director of Transit in charge of Public Affairs. His expertise and dedication made it possible to secure additional key properties for Outdoor Systems. In 1997, John was given the additional position as Director of Outdoor System's nation mall properties consisting of over 700 malls nationwide. Again his abilities and dedication made it possible for further expansion and higher profitability. In 1998, Culver Amherst opened a West Coast office. John Hall was hired as Vice President/Western Region. Based in Orange County, Hall currently oversees the expansion of Culver Amherst's business in California and other western states. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 U P l U 0 H it U j r� C E Michael Culver Vice President / Sales Mr. Culver has over 12 years of transit advertising sales experience. He began building the Los Angeles bus shelter advertising franchise with Shelter Media in 1985 as an Account Executive and then moved to Phoenix to build that franchise until Shelter Media was purchased by Gannett in 1988. After returning to LA to as Sr. Account Exec. for Gannett, Mr. Culver was hired as National Sales Manager for Metro Displays, a transit media company with over 2,500 displays nationwide. In 1990, while National Sales manager for the Atlanta shelter franchise, Michael organized and handled national sales for a network of independent transit markets including Atlanta, St. Louis, Ft. Lauderdale, West Palm Beach, Cincinnati, Portland, Connecticut, Orlando, Tulsa and suburban San Francisco. Michael's last stop before Culver Amherst was with P & C Media, the second largest bus advertising company in the country with 15 markets. Mr. Culver served as Vice President of National Sales and was responsible for a 30% growth in sales from 1996-1997. As V.P. of Sales for Culver Amherst Mr. Culver is responsible for all aspects of sales and marketing, overseeing both local and national sales representatives and managing national accounts for all Culver Amherst properties. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 I I n d U L I I H D E Fi E �-1 David Aaron Manufacturing Ravo Ravo & Operations With over 14 years of experience in the bus shelter business in Orange County, David Ravo and Aaron Ravo bring a wealth of knowledge to Culver Amherst and its proposed program for Huntington Beach. As founders of Shelter Vision in 1985, David and Aaron built a bus shelter franchise in Orange County which was acquired in 1996 by Eller Media. In addition to building 70 new bus shelter advertising panels throughout Southern California, the Ravo's have also been designing and manufacturing bus shelters since 1994 at a manufacturing facility in Santa Ana. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 L Huntington Beach Shelters & Benches Proposed Methodology Culver Amherst has reviewed the scope of work as described in the Request for Proposal and agrees to comply with all terms and conditions contained therein. Culver Amherst's strategy for developing and maintaining a successful bus shelter and bench program in Huntington Beach is based upon, but not limited to, the following: II. MAINTENANCE, SERVICE & REPAIR 1 Local Office & Crews Culver Amherst will base its service and local sales operation in the City of Huntington Beach and has a lease pending for space at 154000 Graham Street. Repairs will be handled quickly and efficiently through the stocking of parts and equipment at the office, in vans and at the manufacturing facility in Santa Ana. Service vans will be stocked with all materials required for daily cleaning and maintenance. This includes all cleaning products, hardware, glass panels, toolbox, power tools, generator, posters, lamps and extension cords. Brand new vehicles will be leased for the Huntington Beach crews and all personnel will carry Company identification at all times. Service Routes & Routing Analysis Immediately following the installation of a bus shelter or bus bench, a crew will visit the site every day for a 30-day period. This will allow the Company to establish a maintenance requirement profile and thereby plan out the most efficient routes for the service team. All shelters and benches will be visited a minimum of twice per week. Those sites requiring extra attention will be serviced more frequently. Scheduling of service crews will be based on the results of initial and ongoing route analysis in Huntington Beach. Managing Complaints Complaints Management will be handled through the following methods: A service number will be established in Huntington Beach for complaints, emergencies and sales inquiries. The line will be staffed 24 hours per day and the number will be posted in a noticeable yet attractive fashion on the front of each shelter and bench. This line will be in place prior to the installation of the first unit. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 L 1® • Complaints will be logged by the Project Manager and reviewed on a frequent and regular basis. The Company will respond to routine complaints related to shelter or bench installations within 24 hours. • Serious or urgent complaints will receive a response as soon as is physically possible and no later than 24 hours from the time of first receipt of complaint. These types of complaints may require the Project Manager to confer with City personnel prior to responding to complaining party. • A Complaint and Comment log will be kept in Culver Amherst's office. Copies of the complaint log will be made available to the City if requested. 1 II. MANAGEMENT & OPERATIONAL CONTROL Controlling Si page Inventory Culver Amherst manages signage inventory through the use of a computerized database tracking system, developed in-house specifically for outdoor advertising applications. Every sign unit in the inventory pool is assigned an identification number, which is linked to a database indicating the sign's position, size, price and current status, ie. sold until (date) to (advertiser) at ($rate). The database will also indicate every sign's respective vehicle number and contract number. This tracking system allows us to analyze inventory on a real-time basis and maximize revenue through efficient inventory management. A timeline graph is also generated, allowing the sales force to visually check on available inventory on a daily basis. 1 Installing Advertising igns U Signs will be installed by an employee of Culver Amherst. Employees will ensure that signs are installed on a timely basis and in a professional manner. An installation log will be maintained by Culver Amherst and will be available for review by the City upon request. Quality Control Culver Amherst seeks to maximize revenue generated to the City of Huntington Beach under this contract. By focusing on the overall quality of the installation of advertisements and the cleanliness of the signage, the Company has developed a reputation for developing showcase properties. It is our intent to maintain a high level visual presentation by installing well -designed capital equipment and by insuring the frequent cleaning of signs and rapid replacement of torn or defaced signs. All bus shelters will be illuminated. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 III. MAXIMIZING ADVERTISING SALES Culver Amherst and its principles have extensive experience in installing, maintaining and, in particular, selling outdoor advertising in over one hundred markets across the United States. The key to our success lies in four key areas of our approach: IDedicated Sales Force H L H 1 Culver Amherst has developed its own dedicated local sales force, and is thereby able to present Huntington Beach bus shelter and bench media in the best possible light. In order to maintain the highest standards in its presentation to clients, the firm does not use outside reps or brokers. By combining the efforts of an experienced local sales force with the Company's strong national sales staff, we are able to maximize revenue to the City. In selling advertising space, Culver Amherst always seeks to strike a balance between local, regional and national advertisers in the market. We anticipate local advertisers to represent approximately 60% of the advertising revenue. Currently the city appears to have approximately 10% local advertisers. Help Advertisers Achieve Their Goals Culver Amherst is a marketing -oriented advertising company. Before selling any media form, we analyze the advertisers' sales and marketing goals. A beverage company may be seeking to increase the number of cases sold to a certain demographic group or may be looking to increase its distribution at the retail level. When selling bus shelter advertising to such an advertiser, it is important to understand these marketing challenges and demonstrate during sales presentations how our medium reaches the consumer where they work, shop, eat and play. We show advertisers how bus shelters penetrate the local market and bring the client's message into the busy commercial neighborhoods of the city. Unlike radio and TV, you can't turn the channel. Unlike newspapers and magazines, you can't turn the page. Pursue Client's Entire Media Budget Unlike most outdoor advertising companies, Culver Amherst does not limit itself to discussing outdoor advertising budgets with clients. Instead, we analyze their entire media budget and outline how their radio, television and print budgets can be shifted toward outdoor advertising, thereby providing them with a more powerful media plan at a lower overall cost. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 References Name: Michael Licitra Title: Planning Dept.Supervisor Organization: Nassau County Planning Commission Telephone: 516-571-5924 Franchise: Long Island Bus Shelters Name: Hayim Grant Title: Vice President Organization: New York Apple Tours Telephone: 212-944-9700 Franchise: Transit advertising - bus exteriors Name: Katherine Rice Title: Director of Cultural Affairs Organization: City of Los Angeles Telephone: (213)-485-8529 Franchise: Los Angeles bus shelters Name: Moira McNulty Title: Transit Director Organization: Stamford Transit District Telephone: (203) 977-4610 Franchise: Connecticut bus shelters Name: Leonard Lepore Title: Director of Transit Organization: West Orange Township Telephone: (973) 325-4160 Franchise: New Jersey bus shelters Name: Chris Stark Title: Vice President Organization: Midwest Bankers Group Telephone: (317) 581-1776 Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 1 11 L 0 0 Thomas S Gulotta County Executive Nassau Couniy Planning Commission 400 County Seat Drive Mineols, N-Y. 11501 -4825 516-571-6844 Fax 616471-3839 December 3, 1998 Mr, Dan Villella Director of Finance CITY OF HUNTINGTON BNACH 2000 Main Street Huntington Beach, California 92648 BY FAX. (714) 374--1571 Dear Mr. Villella: Paul F. r nnp5sa Vlt octal. I regret that you were not able to receive my telephone call this afternoon, but I hope that this letter will serve to answer your questions. As you know, I am the administrator in charge of Nassau County's bus shelter program. In February 1997, Nassau County awarded a contract to Culver Asso- ciates to manage and maintain our municipal bus shelter program. This contriont. was awarded with high expectations for an improvement of amenity for our transit riders as well as a substantial increase in revenue to help defray the operating deficits that are inherent in provision of public transportation. In the less than two year period that Culver has had this contract, Nassau County's expectations have been realised many times over. Culver has rehabilitated approximately 100 shelters and 100 benches that the previous vendor had permitted to gall into disrepair, and has introduced about 100 new shelters and 100 new benches to the supply. All of this has been accomplished in a very cooperative and enthusiastic manner, in a somewhat complicat.od environment of overlapping jurisdictions requiring many levels of approval, All of Culver's facilities have been kept clean and properly maintained. Apart from facility benefits to our bus riders, Nassau County's cash receipts 1 in the first year of Culver's involvement were more than six times the amount received in any previous year from the former vendor, Given the program expansion that has occurred over the past year, we expect to do even beLLer this year. This is marked contrast to the efforts of the former vendor, whose advertising sales and commissions to Nassau County were static over the previous ten years. Good luck in your bid Solicitation. Please feel free to contact me if T clan provide further information or assistance in drafting your contract. Very truly yours, i Michael Licitra Planner Supervisor To whom it may concern: Please accept this letter of recommendation for Culver Associates. I have known Chris Culver for approximately 15 years dating back to when he built the bus shelter advertising franchise in Los Angeles and Orange County in the mid-1980's. Their hard work and dedication to the business has gained our respect and trust that our advertisers will be well serviced by their company. We have purchased millions of dollars worth of advertising from Culver during the past and we look forward to doing considerable business in the future. Our past and present client list includes: Polo/Ralph Lauren California Milk Advisory _ Amstel ' , Seagrams "-Levis Chrysler oNike etc. etc. Culver's return to Southern California will bring a welcomed, creative and innovative approach back to the market. Best regard Bob Nylan President L FILE No.105 12/18 '98 16:00 ID:FT COMMUNICATIONS FAX:310 319 9744 PAGE 2 ir I S H E R/ T)ccemhcr 1 R, 1998 TERREI.L (MMMUN1(:A'r1UNS INC()Rl'ORATF.1) To Whom It May CollQuil: l have been buying, media Iron Culver for over lcn years tend have found their 5crvicr, to be impeccable. 'Their- litird work, and dedica(ioo to the ht.lsiness has made our relllt.ionship whal it is -- one that is bused on muttial respect and crud, ()Ur pfrst rmd prescllt Client Iisl. includes: l ()x (Broadcasting Company ® Roosevell field Mall ® Bugle. I it}y We luive clone considerable business throul;houl 111c years and irllcnd to collfinue st.ppporling the markets that (.:ulvLr represents. Yours sincerely, l )p11 ICI'I'C1l President 429 Sauna Monica Blvd. Sni1.c $O0 Salta MonieA, CA 90401 (110) 11 (X9721 (310) 81"744 FAX 12-16-1998 2:30PM FROM MARKETING AD VENTURE 1 310 540 6883 P.1 Marketing Ventures 21213-B Hawthome Blvd. a Suite 5263 a Tomnce s CA a 90503 ® Phone 310\543-1996 e 1~ax 3101540-W3 IDecember 14,1998 To Whom It May Concern, My company Marketing AD ventures has been in the out -of -home advertising business for the past 15 years. During this time, we have had the opportunity to work with Culver Associates on quite a few different projects. It has always been an excellent experience. They say that a company is only as good as the people who work in it. If that is the case, this is a great company. Whether it was wallscapes or buses benches or shelters, in Manhattan or across the country in Los Angeles the people that make up Culver Associates are consistent in the high quality of product they offer and plant operation. I have found that Culver not only offers a valuable advertising venue but does so from a professional "in it for the long term" mentality. The out -of -home plants that Culver has been a part of have always been of the highest structural quality and maintained in such a way that my advertising campaigns have been worry free. They are up on time and the appearance of the structures is in adherence with what we do: We specialize in fashion clientele that demand perfection. Everything revolves around "the look". Our client list includes: ,Adrienne Vittadini, Harley Davidson Eyewear, Guess? jeans, Swank Inc., Ocean Pacific, Nantucket Industries, Viva International, GoTo.corn, Saint Johns Health Center, Hunt -Wesson and others. I would recommend Culver Associates to any city that is interested developing a bus shelter and/or any other outdoor type of venue. Sincerely, Bruce G_ Friedlander H n DEC-18-1998 09:24 To 'viol it my co ncem. 212 260 0646 P.02i02 ICI Advrtisiang, Inc. has had a long tom, ouWmding relationship with Culver Associates. y pemnal experience with Chris Culver spm over 15 yes, where both he and myself were one of the &st outdoor bans shelter advertises in Los giveniheirprofessionalism ! d consistent of pi !�� ai 1 711, = ilk ";` -, 7P Y a+dvert%isinge !no. 1a9 bay street. sant.a'montaa ..Ca 90406 U10.56#...4889 t.37Q.587.8108 TOTAL P.02 I December 16, 1995 Mgr. Bruce Sondike Buyer County of Nassau 1551 Franklin Avenue Mineola, New York 11501 1 Dear Mr. Sondike: Please accept this lettiir as a formal recommendatin for Chris Culver. I have known Mr. Culver since the mid-1980's when he was Executive Vice President of Shelter Media in Los Angeles. Mr. Culver grew the Los Angeles bus shelter franchise into a successful franchise which is flourishing today. Mr. Culver was in my opinion responsible for creating the credibility the bus shelter advertising industry has today. Since the acquisition of Shelter Media by Gannett Transit I have also been in close contact with Mr. Culver and in fact have entrusted millions of dollars in outdoor advertising with him since 1991 on behalf of Time Warner Cable of New York City and NY1 News. The County of Nassau will be best served having Mr. Culver's experience in design, manufacturing, maintenance and sales. Yo s ly, arty isch /ph 1 141 Fifth Avenue 9th Floor New York New York 10010 (212) 353-0100 Fax:(212) 353-1105 ' McCANN-ERICKSON H", H n Kathleen LeRose Vic, Pr,sidrnt Dir,ctor of Out —of -Home Media December 13, 1996 Mr. Bruce Sondike County of Nassau 1551 Franklin Avenue Mineola, New York 11501 Dear Mr. Sondike: This letter is a formal recommendation that the County award its bus shelter franchise to Chris Culver. We have worked closely with Mr. Culver in his former capacity as Executive Vice President of T.D.I., one of the largest out -of - home media vendors in the country. His knowledge and experience in all facets of the out -of -home advertising business proved invaluable in assisting the agency in convincing several high profile clients to invest their advertising dollars in such media vehicles as bus shelters, billboards and telephone kiosks for the first time. Among these clients were AT&T, Chemical/Chase Bank and the Coca- Cola Company. All were pleased with the results and continue to include such vehicles in their media plans. We already have pending buys for shelters in Nassau County for 1997 for such clients as Chase Manhattan and Exxon. We look forward to working with Mr. Culver again. Best regards, Kathleen LeRose McCANN-ERICKSON, Inc. 750 Third Avenue, New York, NY 10017 Phone 212-984-3707, Fax 212-984-3728 m f Notes � f r i i I E u C Financial Statements CULVER AMHERST, LLC FINANCIAL STATEMENTS I YEAR ENDED DECEMBER 31, 1998 I 7 H CULVER AMHERST, LLC PRO FORMA BALANCE SHEET PR O FORMA STATEMENT OF INCOME AND RETAINED EARNINGS YEAR ENDING DECEMBER 31, 1998 Year Ending (E) COMBINED BALANCE SHEET PRO FORMA ASSETS CURRENT ASSETS Cash $ 510,581 Accounts Receivable $ 2,598,561 Work in Process $ 1,131,080 Due From Affiliates $ 535,654 Prepaid Expenses $ 157,168 Loan to Affiliate $ 15,000 Employee Loans Receivable $ 1,761 TOTAL CURRENT ASSETS $ 4,949,807 PROPERTY AND EQUIPMENT, (net of $172,000 in accumulated depreciation) $ 1,139,178 OTHER ASSETS Security Deposits $ 133,130 Loan origination fees, (net of $583 in accumulated amoritization) $ 4,417 Loan Receivable- Officer $ $ 6,226,532 LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Acounts Payable $ 2,251,177 Accrued Expenses $ 1,107,790 Prebilled Revenue $ 1,129,792 Sales Tax Payable $ 12,154 Loan Payable-EAB, current portion $ 100,000 Due to Affiliates $ 535,654 Due to municipalities $ 206,888 TOTAL CURRENT LIABILITIES $ 5,343,456 LONG TERM LIABILITIES Loan Payable - EAB, less current portion $ 320,853 STOCKHOLDER'S EQUITY Capital Stock $ 20,100 Additional Paid in Capital $ 281,175 Retained Earnings $ 260,948 $ 6,226,532 Notes: (A): Actual; (E): Estimate; Page 1 of 2 3/3/99 CULVER AMHERST, LLC PRO FORMA BALANCE SHEET PRO FORMA STATEMENT OF INCOME AND RETAINED EARNINGS YEAR ENDING DECEMBER 31, 1998 COMBINED STATEMENT OF INCOME AND RETAINED EARNINGS PROFORMA REVENUES Revenues from Operations Cost of Sales GROSS PROFIT EXPENSES Selling and Administrative INCOME FROM OPERATIONS OTHER INCOME Management Fee Interest and Other OTHER EXPENSES Loss on invest in El Nino NET INCOME BEGINNING RETAINED EARNINGS (DEFICIT) ENDING RETAINED EARNINGS Year Ending (E) 12/31/98 $ 15,056,025 $ 11,666,263 $ 3,389,762 $ 3,323,187 $ 66,575 $ 83,670 $ 69,730 $ 20,000 $ 199,975 $ 60,973 $ 260,948 Page 2 of 2 3/3/99 H H H- u Financial Statements u CULVER AMHERS'T, LLC FINANCIAL STATEMENTS Ll I YEAR ENDED DECEMBER 31, 1997 L l P, 1 1 1 1 1 1 CULVER AMHERST, LLC PRO FORMA BALANCE SHEET PRO FORMA STATEMENT OF INCOME AND RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1997 Year Ended (A) 12/31/97 COMBINED BALANCE SHEET PRO FORMA ASSETS CURRENT ASSETS Cash $ 988,759 Accounts Receivable $ 2,173,870 Work in Process $ 693,315 Due From Affiliates $ 171,516 Prepaid Expenses $ 28,802 Loan to Affiliate Employee Loans Receivable $ 15,783 TOTAL CURRENT ASSETS $ 4,072,045 PROPERTY AND EQUIPMENT, (net of $43,681 in accumulated depreciation) $ 625,919 OTHER ASSETS Security Deposits $ 55,740 Investment - El Nino $ 15,000 Loan origination fees, (net of $83 in accumulated amortization) $ 4,917 Loan Receivable- Officer $ - $ 4,773,621 LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Acounts Payable $ 2,187,352 Accrued Expenses $ 529,996 Prebilled Revenue $ 722,757 Sales Tax Payable $ 10,876 Loan Payable-EAB, current portion $ 100,000 Due to Affiliates $ 171,516 Due to municipalities $ 288,876 TOTAL CURRENT LIABILITIES $ 4,011,373 LONG TERM LIABILITIES Loan Payable - EAB, less current portion $ 400,000 STOCKHOLDER'S EQUITY Capital Stock $ 20,100 Additional Paid in Capital $ 281,175 Retained Earnings $ 60,973 $ 4,773,621 Notes: LA): Actual; (E): Estimate; Page 1 of 2 3/3/99 1 1 1 1 1 1 1 1 1 CULVER AMHERST, LLC PRO FORMA BALANCE SHEET PRO FORMA STATEMENT OF INCOME AND RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1997 COMBINED STATEMENT OF INCOME AND RETAINED EARNINGS PROFORMA REVENUES Revenues from Operations Cost of Sales GROSS PROFIT EXPENSES Selling and Administrative INCOME FROM OPERATIONS OTHER INCOME Management Fee Interest and Other OTHER EXPENSES Loss on invest in El Nino NET INCOME BEGINNING RETAINED EARNINGS (DEFICIT) ENDING RETAINED EARNINGS Page 2 of 2 Year Ended (A) 12/31/97 $ 9,183,570 $ 6,956,323 $ 2,227,247 $ 2,196,489 $ 30,758 $ 50,002 $ 11,535 $ 92,295 $ (31,322) $ 60,973 3/3/99 u 11 1 11 Financial Statements CULVER AM]HERST, LLC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 1996 H 1 1 1 1 1 I 1 1 1 1 CULVER AMHERST, LLC PRO FORMA BALANCE SHEET PRO FORMA STATEMENT OFINCOME AND RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 Year Ended (A) COMBINED BALANCE SHEET PRO FORMA ASSETS CURRENT ASSETS Cash $ 101,245 Accounts Receivable $ 1,496,650 Work in Process $ 76,525 Due From Affiliates $ 50,820 Prepaid Expenses $ 6,538 Loan to Affiliate Employee Loans Receivable TOTAL CURRENT ASSETS $ 1,731,778 PROPERTY AND EQUIPMENT, (net of $8,792 in accumulated depreciation) $ 41,248 OTHER ASSETS Security Deposits $ 7,167 Investment - El Nino Loan Receivable- Officer $ 65,000 $ 1,845,193 LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Acounts Payable $ 1,075,411 Accrued Expenses $ 644,567 Prebilled Revenue $ 94,447 Sales Tax Payable Loan Payable-EAB, current portion Due to Affiliates Due to municipalities TOTAL CURRENT LIABILITIES $ 1,814,425 LONG TERM LIABILITIES Loan Payable - EAB, less current portion STOCKHOLDER'S EQUITY Capital Stock $ 100 Additional Paid in Capital Retained Earnings $ 30,668 $ 1,845,193 Notes: (A): Actual; (E): Estimate; Page 1 of 2 3/3/99 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CULVER AMHERST, LLC PRO FORMA BALANCE SHEET PRO FORMA STATEMENT OF INCOME AND RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 COMBINED STATEMENT OF INCOME AND RETAINED EARNINGS PRO FORMA REVENUES Revenues from Operations Cost of Sales GROSS PROFIT EXPENSES Selling and Administrative INCOME FROM OPERATIONS OTHER INCOME Management Fee Interest and Other OTHER EXPENSES Loss on invest in El Nino NET INCOME BEGINNING RETAINED EARNINGS (DEFICIT) ENDING RETAINED EARNINGS Page 2 of 2 Year Ended (A) $ 6,633,619 $ 5,719,124 $ 914,495 $ 916,660 $ (2,165) $ 29,167 $ 13,236 $ 40,238 $ (9,570) $ 30,668 3/3/99 -�* 4' I E FI Street Furniture Designs ® The followingpages illustrate some of the designs available to the City of Huntington Beach. P g g Y g Although these designs are very contemporary and attractive, Culver Amherst is open to alternative designs for Huntington Beach. We welcome the opportunity to select a design which fits the specific needs of the City. i P � I Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP 1 March 5, 1999 ® ® ® ® m m m ® ® ® M M M ® ® m ...�L.It 1a1'All ��� � IIr IJa I rl � � i I N'NII l IIIIIII"Ilia i, �rv„I i �IIIF lal �Ix, I� 1„' h7;' III 1II ��'la�Cu'Illilih' N 6 P hh; f i�llll��ll�l�l�l�l� lr i III r' � .._ :IINI' h I II�I'IN r IN , f� rllilijr II;I I � II f II I fililY� I r, IN I , II +i,'. ',I'C'JOt RM ", 1'. ., ', .H,ollMluull ,n�: y . ...imw � „'. I... iI�iJt�1 �,.. „m xVihil�!��Gu�i�rl ylI fl�l I �I� �,h VI� III,I,pJi,NlNVIIuJN�l91!,plulriNII,,JIJW I�Iu �IMI IiI��i,Lpitltltl��Q''�� "u b I � a i��� wv1 � { I �� �.,x. � l x � wwnll IIIIIn NN �. Ji �, � Idu'VINIi.ilil�tl 'YI IId II',' Yir n Irl',' I rV I I IW �.+, r lliJl N �Iw,r fi,,,�Ilj, !rylli,,�flilrhfNl,l, �f�.,li4�I�I,J�IIIL.N�fIfInII�fIIIIi��,III,,,Ij4NU+.m'rvflllr�Nil,H�iNll{l'j741fgf1 II��Iry'hl�,�r;; �.,it,jlj'Iil,,yIINIIIN�IF',,; hu-,�k itl w.d,�liyl I NuN,I';,I��;, ('II�'i'iil,,�l l''��N II � I Iryil it IIIIIIItI��l l'II,I I,l r, rlPo�Y;7lili� 1111I II frilly I IIII�PIi {, i� d�i��,� u,ih4+�fiMlk j�, III I u,II� III I�11���II,�1�I I��Ifl� I! I i � I nn if i I'lli�lllull II�IIII ;, �'Iil�ii;N' Ir I'NII ufNlll"',,�', Ilil�l� I��III�I �„Ij I,�q Ili ill l��l� lll�� , I Ili' � u �I,N I ul�ll n L ,16UY�1' I II�II �Illlilil,ll �111111 a il�ll a�, 11 , I �i ll�ll l � I , . li, ri I'iu IIIIVI I , ,' ,N I, .I I li n I i 41uN�IN NIh��9' I;I MINI Ni� Al, If l f I. 67 u „� I till Inq�l�ll�,lj pull l 011'If)nllil,NlliNl NI�mll4l mll,q„ i I�11 , BUS: SHELTER ' I II I I N I i i l I R�m►a+� I �3 1 �� �;� �.� N .:,.M.,,. ,,,;,�. „ � 4 ,.��� ��3: �• • 'I..-.. n N. a 7-777777777777777= �,LIi� . m. N Ill r tDPW :&�ili nHl irllul p'tl III bl ICI 6� h I �m o�l� J�IIII� fry �. ���� ► " ��� — 4 mr4 � lr . YJ t� ane:b •� ��,' 4„,, , � ::,ip^y�Y � y J � � vi .�,� wIN���r, I� -- :. . 'a'Milgl�n!.. II � : I r till .. ,.,� III "Pm '; �• ._.�; .W I I� I : 41 I I u'� �;� ' L' I � I,u ;I � ' \ } � h � r t � �,� f II , I, al I �; I IfG� � Iry I•! o � I :�' I I �� .I � I I I' rli p Il ' it 'I I: li' � ., w..� Y � � � I,: � Ill, i , , N�� : I, ,n�hn k• �� � �'. � n W. MM. r : ' - ' : 'III I� INI I •'„ I"I ,,II« I � 1 hry I I " — �:"II ��- Ili�lll III'HI i � rL lI I I I. �' i� I I uNI4, , �, I �� ,�I I I a � �� III I IIyIIjIpINIp.L ..F,. oB IM I .. �IN:�� ^ ry ltl:' ;- .. '.i:. • . ".. :; :«III:: ^I ��' u 4 I ry 1��4 tdi I I ?V�I��III I'I /z Wuugyw.: I W 1. yI f } f II I �I uli'i �I�d dllkWw�p WN� �'INi� III IJIIIIIII l''I III ¢ L"!� fi mIIdIIIIII �Iu"NI'll!Illl � AlmNi M� Iu�ihY,; wrddlh � II ot ': '"��aull�Il I .. H I 1"$dC44IB TD;ffR6�EAR a_ 1A ZE Now t4 + 'o Raaf a, --- 3 jA T 3 —4- -- -�^� $ i 3/4' ANY �fY ! i 1 F ROOF Torre E�dD FLAT BAfi �� SIC BE , EKD BELL A I} NOV 3 CORNM 4' W- AY CASE C/1B 7Jtow OQTS P '9ELLOW DD' 00ODoc 00lQ0004n C-IclooeCOtTOC FRNM GLASS Cl4P n l* 3/r QIA MGM tRl� !il [XA$3 eP.1ASS91iM e� 6Cutl86 — St"O4: PCST Sam SIA" HOST-€i:RWffR r e 1 e I t l 1 D Y e f o e I e + s • 7J •� .C.7� SIDE IMEVATM 00 IB U S S HI EL IIhY �iy„,"I-.;IJI'�o IIr I ✓Id. {�; 1 a ;; II F I � ' t, t � �. x. � • ._... '^-: yl,� . n '�':. `'I y �ti!�IHM��� ,� I�'. d . III ��� Ihlu I I I rl � 9 I �Ilq I I I I {ij a ,i11 I C: I I � �•. � FI yl �I, III ly IIII •." I, a I ' Ia IM. � .,-. I , •�, , . f.,.';' I ' I u� ^ , IIIII �I�GII I�u�. 1' � •: ,,, „:. ,:,, : I7 ,'I a uIVG I III I {� 9-� °"'�-� (9 it Ilµl 1�1� , q w�'�°"�; ��a ...:," . .: I" '. i� i�,: I ,�: �. '�,,, I o�';: �;. �::: � � � ��� .'�:.I ..,: r ,I.,' ._ . ,' ; p,; I N I i ��'�I•�I" ' f�,, x %r�{�'�: !! QI, �Ilpl 'YI,', `,q I,Y cl �'...�. .,., r, ''ll:,= '. ;.', 'I I III' „ lu. ,'' 'q ',: .. ':!1 II• m I ., h; T�,I� �' I.: '�. �?x'.: M, ��:.i� ItlINdI�I� I�' ua aN-���N I * d'�II.� 'T :CC. � I � p::ilp IIII III I, I II� L:f�.' � Clr ;,, •:-. '. .: •I u; :: ��: a�� I�: : ' JI� ,.:y� ^,I ,'',IV� ,.Va'+d 19119111!I'til aE� a IIwNp� uu u { III Ii�V''R�tm•U •. ' I 1 III ,I';'ui �,i :ll'IV N yi � IG' �' • r t I I : I a I I )1:1 I 1 1 IV"d III v I, bail I IIIII � a , a P I I �,., L' '."•rrk' yt' III ,Illpl. u I , Y� rl IN' . � I, �' a?�Ip1111. r' II � �� ";I , li 1�ry7 t1.� � L ..r$»� 'I � d I. , �N !'� .r v a u. lu , � IN.., II N�I ,r-• q ImF "Iy HII i''.' ,",I,u I Ir , I ^ ,I fr'd lurypy: ,:: -:I,.: � f ^: {I�I lu : ,�. Ip�l1 II r, alp; ,.: I;I';.' I q1 ,. HhuWu:n,il �.,V� III 1.... d Iwlyl' H II y I� i' :i 1 L P I:,I �, ✓ t� rq'� I' �� I V I : i , II� ;`� �. 5 .IIIW°p I �,. I IGIM� q '�'S..=t. i fi:�+�•` r �'�^•'`y:�� .• .L I, I ': I IIII h L,II , •,. ,, .,, - • �I! wn.�"�Ip lll: I II � ViIj 'IIhY t•� �,.rt4,�5"�".�x, V I ° :'',, wNViCIa::,ld"lulNpii!,;{IIPo uM4 ll,i �NIII I:pl:'h•N N N1 +IL., � 1 •-1 itty ..&.: � ¢.,.,V,,;, �o ,�'�'''. 4'„ � III ,.. , i. , „:, :: : ' I . , i;r ,�`.. �', , P , �.m*{ :: ,, ''d�nn d y 1 i 1: p"' I � I'' I I IC I uWi�l�, - ,I-„ - p . ...II . '. �'*���:��� 'cif" :' t3•.�.It,'n:-;'. '" 0'.. �. „ � r, ;: • � I ,�:,. y,. .. . 1 "� F J6 '.•^I,.. , ,R.,, x__. N.I�,u; 1, � IOL� IL: ;�� I call � Ily MC7yI' �,. ;III �Ifl 6 1 �q��If 'y��WP!"L .,'�Ltir,M14 ��,�,r�. I � 1... •i1,1.;�; y� II: Itl'�.. �al,p ,• a' I vn,:k,�� �a'::� W t :..�.' � e. -r:.. «^:r; l��„Ya". y' ;;ji..x., JY�,. f 1. �,I ,. Nam, I ., .1'Ln w. ,,:..,,ryw. I ,� „v, r.I. •.11 Ir:w .Ipl IIII ,iilM'„, 11 II ('i�,., 11 �y�# •I J rx ' ,ti �rJ:'N ..d".� { ., i, I: n: I�, i�l: I ::�.c . d� 16� �._ 1 ;".,�•I' 4 fir, �' _, ��.b V;' Iitr " I ,j �'u�,,,,,7 ,1 : � � v .. .� � r�:.�1'-,�� �, -:. r! o.,, i...• ;r n:.. mal:.:.::,. I ",y d. I pr j :: i:u,p IM 1p�k. i�-4,y�.�,nlm��i^� ma�.�sW-,„,��.. f.' ,Y t W: nl:''; ',,���.. I IS. ,-., ,. ,' ,•„ I °'" I'� I ..'il:. ,. h.:,7 •nu.:... dl�. ,. 1,. �i IJI IIII .I. �I, 'F ke1n ^: r °P' .t w I II`J, � I1IyIjN "'� I a I II 'I I'I I, � IIIII �p�1 .. �V !VryIINI r IIIIl • I • pul L.'9 i' � N!,�,I "IIaI NIINd; y .�, NN r_. : s� All �, b,a . � „I� IIIII, II~IIII lr' •,ys;f,r e � . ''i' y }fiI I .III IIY!ll!9 �II� 4 y Lo:,^, q ., I. , 'il III' IIII U, a{.. `�nyj.,, .. 'aJ1 � a�,:'l' •y'�,�uµ° •IQI p� .'f�� , ��� f � ��pd�lpp((1�f�� III u ��I •,',, �I�iL Iprfil �I,�uu �f„,.0 t• r I II�.I: j�aP I � J" �dly�t�+. T-` i +'� �. �, 11 ��ddlN I' I N ' I li't 'VI�NN��'tlNIOg Iu!14',�� tl � ��U !�I"III wN..�I�+ItY": �,��.: ,��''�V.,u'.=.'k�•d l� �I � I � i.� �� � Idlh Iu I : �' I� i I .I : - �. I .r iil'11 III •_ 1/2'x23 04 1/2` 14 21 3/$"x7L >/� cRsao/v t2M7UM.Q ACOPY SIZE) I , z3 r/a" 3'-6 3/r 1 i ; A !< 1'�-5 3/4, 3/8'-I6 H.H. CAA SCREW 1 i'xt'x1/8' @OLT ST.ST. C/w STM ANGLE LOCX Jk FLAT WASHER 5-IG"L0 ds ANCHETt 44 MID PER BEMCN} 13 i FROUT MMATI M i 1 t , i 1 1 ' 1 ALUM SIGN FRAME f4 4®18` �Ar ab�l+sl�} c}1 1/Yx3 3/8' PLASTIC WOOD '-.0 3/4 Lei.4 _ tZ ZO MOUNIM TTO�FLAT BE I BAR WITH 1/4--2b CARTAGE BOLTS 5 ARLL 4' 7A>e TOR A b/�¢=1'pf 1' F.H. i'wx. SCRc'bV (Toe ! e0TTo1a) -4 1/b" MIRTH SLAB OF Ti fil TO BE PACED AT BCT W 4"h23 5/$'x3/l 3o 1.-3 1/2' OF SEND STEEL FLAT 13AR 11 mom 2 ' QD. x 3/16' STEEL ABBE WAD 1 AIVAT' " �ILW 4" kUT TAI;K Itit L+D 1'x1'xi/$• PLATE BEFORE5'-10'LG. 1 EEL TUBE IS i S3EEL ANGLED IN PLACE :t: 91 F,-3/6' T; OIA. MO NOTCH CORNER 4Rt ,UM MTO FIAT {ball 8F ANGLE aC. A -A (IYP) MAIL. A ADVERTISING BENCH (A) 7' DAY BENCH ADV' ,-RTI SIINIG B E N`C H. . ti * � � `^•=ram _ _ _ "u �II Oil t � 'ti„. ` •^ � �y,l� 'a, a N � .�, iginnx� ',.-__ - - _ � -ry^ I I Ji7 ^� �, � �., _ n�lk"�I��Nk►„'��x ri., ..•�mm,„�,.,.� � �' i5.•^`'ni': °., y .v v.ay •� '_ �'m�A'I"I�'1"nr � "Jnm;�1'��,�,��. ,� a:,'��,�a?�'n"�p,µ,� :. �«�-,� ..... aUrC^9 Lu• - _ Sw',�F,�„�y`;�„ i' " ` •'k mo^• • t : 4TM'�'�` :e" k a >a1 SO d� u'4o .i'Nn iJ �lkll'Ulgiglbl iiJllli I +p 1, M.i, sty •k ti'? ry��ld i{4 yI IINN�m 4 h dl, �Ig7Illq���Nuq' µ,u�.�m„�;�u; �NI i4UI��'��� � it . � ��I �, +� Iwo„ '��• u , � � "; � I�rl � II , I .,�'. � 4 . ,4i •� � ��,,7 � , �iV�@µ��I�N�,� ,��;�.,s. „. .. u. yn. ,,;.,r�, .n..�w'�-'C. � n.,rfiJ �� • i 4,..... � � I.��ni. Y';i ,, ,� ,"�+i,in ry, � m `y al a �,i�n'ri 7�µ; ,'�i �' ���4 �u. d "; ':� � I .w�.,im y„�� i., i , . �.. „ � la ..."-r'�r� "u � : �:�N�I@�� W,,o-�.� aI�M• 17Yr-� m �;• T - � r��r:, �, M,�;� '.. �, i i �i �� . w • I'�' +h }, k u .,h�N���,.hB d . x�, 't'� m w� �yR n-ro- 4 �' 7,, tiry'�"'i .r a "' �,. 7! a A ..t y+. •k. �1w ., '.. �'�• ..wm..� � t r�mit�"�, "m',.' I�IIII IIII�III� I I i I p nmuv�r�n , ,r US - 4 i I I II I �N III I � Y ...n�.:-�..•_„_"��u�me � y� .gym �d�',�y�k ` 4 � �� m-»w,u<-,m, ��=` "�-•m-: .� _ .:i� u^f�""_� ��_ ��•� -_...,-,,, �.J _'1""'�"�rF6dJ�`�•�_,'_ .m�;,r�,u,..:'W.w -• .. Hill ui'411, , INIP Atr I �I ""'" mmxamm�w wwu mwmwkMmmu pe W«nw wwwum � yw�%. I � .. m _, � k , ,xx n 6 Nummw�uNv,utiNrmuhHu�� y"•v � 'n, i i� n n, . maNmiu mwa wernnnnum,ri an ron xuwn «,u" pl lu ... rmm pull I k uwwumiuNw�mmmin 4n �n�° '' M ' in M pmMnmmmmximwmM Nm mmlN �I'+Yln"Nn� NM'nHueOMxMWX,MIIxNIXu mNp N NNiN.ni IINNmtwM+�'pMd Nmmm mm�m^ me nm +nxp u`, " , i,,. , "_ glYhn�nm wll �n�w:- nJ uIInh hIUptli ,nIIIn ,vi Ilnl�.llnn n iol,l mmr•^,""Ini ���"i0 uinn 111.. i1it 9i� w�u dr' ildIIwtli 2q.. , 7 ft. Day Bench (non-advertisinl-l- 0- � Mtnrm ms Dmwm & WExcim OwxA 332.9" Seat height 14.43" Arm height: 26.75" 0m9 dq* 26Z" Anchor bolt hole diameter:.30" Chartbelow shown length dimensions A and B (bolt bole to bolt hole eemters measured in Inches). 7be corresponding mtmber below represents its net rye k (measured in pounds). All dimensions are approximate. lids dm should not be used to set anchor bolts. 4' S' ' 4' �' $Ot 7' A"1WI lx !18 .123 13F � " TBD Sp ktgdt (see above chart for standard lengths) by adding length to end of mode! amber (Le. 8-164 for the six foot model). ❑ Standard kngth ❑ Castoef kngth (consult factory) MZCEUANEOUS Beaches skipped unassembled (Kl)). Anchor bolts •-� lncluda STAMCMONS Cast gray iron ASTM A-t&76 Cuss 30 �INISl:i , PolyesW .003*-o.005' coverage ❑ Deep ,91*ckc (standard) ❑ Bench Oteea (statKi 4 ❑ * Other (cotsttlt factory) WOOD 9 straight slats 1.0625" x 240" fmisbed dhnensim Kiln dried. dear all sides. Drilled. sanded. chunfeted ends. All corners eased, ❑ Standard wood ❑ Other (consult factory) WooD Fig ❑ Natural ❑ Other (consult factory) HARDWARE Stainless steel 1/4-20 nuts and boim Stainless steel # 10-32 scmw& Skee.1.623-diameter tie md. Aluminum .123"x t.00r cross braces. NON ADVERTISING BENCH (B) 7° CLASSIC CITY BENCH * AVAILABLE IN WOOD, STEEL ALUMINUM OR RECYCLED PLASTIC rr r r® r r rr r® r r rr r r r r r r r 7 ft. Classic City Bench (non -advertising) SPECMCAMNS Dmi`lSmOIYS & WEIGHTS Ovetaft height: 3325" Seat height: 14.43' Arm height: 26.75" Overall depth:26.23' Anchor bolt halt diameter:.S0" Chart below shows length dimensions A and B (bolt We to bolt hole centers messnted In Inches). Ilse corresponding number below tepresents Its net weight (=wured in pounds). All dimensions ate approximate. This chart Amid not be used to set anchor baits. 4S' 6' 81 7 A 0" wei h 118 .128 136 gp� f '`4sYol." TSD tveighr 187 207 Specify kngdt (see above chart for standard lengths) by adding length to eM'cf model number (I.e. B-t&6 for the six font model). .fl Standard kno (3 "Custom kttgtlt (consult faetorv.) NbSCTsE1ANEOUS Bencltts shipped unmembled (KD). Anchor bolts •l included. STA..NCMONS Cast gray iron ASr.A AAA-76 class 30 FINISH Polyester powder coating .003'-.005' coverage ❑ Deep Black ((standa4 ❑ Bench Ckeen (standard) ❑ Other (consult (actory) WOOD 9 straight slats 1.0625" x 2J0" finished ditnemion. Kiln dried. clear aII sides. Drilled. sanded. chamfemd ends. All corsets eased. ❑ Standard wood„ ❑ Other (consult factory) WOOD Fla � Natural CI Other (consult factory) HARDWARE Stainless steel 114-20 mm and bolts. Stainless steel #10-32 screws. Steel .42S diameter tie red. Aluminum .123x I.W' .toss braces. ADVERTISING BENCH (C) 8' CLASSIC CITY BENCH AVAILABLE IN WOOD, STEEL ALUMINUM OR RECYCLED PLASTIC 7 ft. Classic City Bench (advertising) BENCH 8 b°: ° a, dNgl 191 II"NII I� � I " � � Nn r x II w 1 m m � I � d� I y„ d a I NNE ;kc map" I I dl uIINII ii III � - . I . �I 411�. I lot rlNl IIII I.Illq �IIII�, n udl'� u�ldr V i. w� vlll4 Elul + m � � d' h �tl III I „, "�hpl I':I� ' I. I.. J 1 o ! IIII ll,il;l IIII d N;,I �I III u A* I; dl h m u:. Id�INNIpdW, yl �I* " `I. V� d� vest i+ �NI�W6NI' I N m �` LI I I U I dl I — "u •II a ��"I 4N � Mr , l dr go Nw d r IW ul. rm IX�'. III'�zyn„�y der olll"" a II I� a ^ Mu ,. Wb fiLgr 74 I� 4NIh k r . 'Wd I' �' - �'I 1WW' . .,WI , I�r R�ltl!r M I�^��.�I I�I � i ,. N. N a II I. i, 1 •.. .,.... 4 " _ r "�UIII Ilaylh II'Mfl II N IIN m V T'.'.P NN X I1IufI 'Y ' Ic II i W I J N�W U BEI,4CIH wiaul I""'I� �u+NpII�pIIL �F.�,gm�'gl llu �N:h ' ih.0 ` IQm IIIII .. :.'� 4INNi I SIN r, III�NIXIIIN!„ ,phr .� ,..: r.'iI IN�. �.. p�..., N�,IIIFI• � � , ' �,��'�'"I. ,.. I rN li L: ,'nl., V u m:IN a 91g1 ,aN"IIN n bN: gju,l, m III, �^ Po I N � ail : I NI I I � , al m ' I tw NQ, Sul ' N In Q4 d NIIIN!f MINI: �rl aWq�l . INI (I �, 6 IIL N:. N'.�p6 N pau II Ir, . «. ,�'"I'I-„«III. 'IpIe{ :N'� p;:"•" u,h. rL- :r - :IIIIII,I, l�,.. IdaINmpQ «rN X r rll �I"flIIIPoI : p��� rP„ VIP�IN NIIt' I' µ �Nlryip II p k tl u! q.9 �YtlV'gpllmrlln N, "�I �,; Ih u. pQl r h N NN" p Iflo, � "",�;1'udpU ul N i i„uN INII^ "'NNlryi, �'� h',. ,:.'" , I"Rill, MVN aN II VX, QN ,INyNI mXlr"; hl IM'n 'Nuuiryuu' . ,�u'li II N�xX.^ dI�N:' '�ql iml':��I��p�I II. gpIIR!II: �I INi�y�I 'rJ� „t'.. I '� r � �r .,,'�,,:" III NN ,i�p�I I ANadl �i91� I m I „N d ryI' .,,I i, �IIC I!�;'NNNplpu a �MNI d, ac ,om i! '. ,:, «u ,JWw y flI 111 I: IIIa 1 •-,�,�7 mi w INII NI, Ip,. r „" " mlI�„ III iXm Ihli II N�I'IQ� ! U� Nq INII NI N d� NN y p a 4� I0.'" t u�"W fly. I�U IWp� �'NiN'� hwlli!gNI '" ;, NN'4':'"I rIQ N qll """ rid "jl 'DWI Imo, 8 sN�'uDl "I,'N X, 4 INIIN-.a l NR� N V;,wil dN,;N h �'�p,p-IIII �� L;IQ r :a,� I,,., pi p �u IgpL'.., .mlup v l .III I,llul �ab, N .. MN:I�N�� �IH ul e'll N INI ' �, N" N d x ru : Qfa rll�� I• u� Ln I.. +�ml::'. � " :I IIN.p:"„-' �IQ, P—, '",i" II Uaq;I.II �:Nwprc.Ila,� wI„NIwN',Nuu"h ' I IpIr I;y1j Rq�i cNmNI !uN'll,1�iI'�u,, ' III,_IIu.:NN,�II�'�Ii'p�V;p�N�FIINL�" ,,''pIIN R , I^ IIIppIyIIpp;NWoI;�l:1I1iiN,m,ygIrN " r I' �V _II ,:mu4„ �QtI l QlN.�,,i!hl�l�.!. T '♦N4 !!„ 11N,:-dNwCla, .NIiN, N, !&Ir NI u IL! I m,, mNI .Ii„4 .I.'.,�. gp�'IIppppIulI II.!� ��b�ryILWNuII,pN�,A:4, ,I�"B�'^IW: W'"IIrI 4�I' u�14r i�yUmIII(la9f , ^�,, ,dIiN.i:„,°l ylp' tllp G�:k" u�":�N:QI! a, , lI �:.,Nrl ; I�Nipoi IIII'7;VpII�ef"..�NyyM���! .p"d� uq,� `. ,umlr�lFlyl N�uWN �.iIY MyuIIIN�Vj r fill, �h.mE.4.I''1aV : �Qwmr�•lp'N,, Lh o h.IGNI�IuNl, :V,�Ii!:' ,rl1-d,N� hl!l' X NmW r I4 NpAlIr All' NIh'. �4�of yy�:li, W r N, ; ct- - wln:I�Viu:1flNha w�' dli. �m m'IX "m Oil : 1�',� I � y .. � 'Ql" r m N�?illl��rl �NIN"IIIIN��VIm 4 ; . VI �N.N� � d„, �I I ! t + m^'au 9N' 'm�'' �mitl :: � rill XI r'Nal� ulQtl ',Ired� X��I „ N��II��"�"a C . �Ql rll�p ah �I M ,rrrIn:h�N iN t:, 41 ICI 'wwF '"Wa" �I II NNIpQQ CNN p, ,,q;I PI su : III�P -4r �mro ,u euN nil Nr q ��Nh,nN h g,III yNr �, + wlr ItlmN Ik tNl n �' 114 QX!Nfl :Sy"M�"'. W�y �rd •or .y.". w 4, „p Iu:I�N�r . I I�p�I��y NIA jjjI I it N� ICI N lit fill ��� n, I I � 'I tltl �I I t I I II it I I l r I Ij4 � III I �Iw'j I I. I J4 IIIp '��` jl � Ir Pl I II II �I,IIN JI i ft. Urban Lights (Illuminated Bench) CLJLVEJi HbbLK- I H I t--b s L I V. TOTAL P.02 liiii ® 1=111 = ® 11110 ® ® m ® ® ® 11110 1110 ® 1110 1110 NOW 1110 „„jIUI,NII , 1'Mp!!NruIIN -�__ - _ - - -_ �II' "llllll IrII I VI�� III ,IIII 'IIII IIII !N I III �I II I� ' NON M� ' III 'llllll IIIII ry, II���111 NI mm NII I IVIiI,, IIN NII�'NI It,INN' i1II IIII I r• NNN N( NWI CULNER AMHERST Nr�yN l i, l IIN MIN I N III rlhlll if IIII IIII � �ry, fl I IIIII IIN IIN) N � I III �l �g Nll�l IRlll III ,IIIII llllll 1 III ,IhJ Ihllµll I 'IIIIII IIII l l�I,�,11nl a00�'y I I�� IIII ' III 'llllll , N!N II��NI!!II IINNNN'I!Nrk'I 4PfINNINI � ryI,N'N„ININ I I I, I� W I I,NI I I I I II IIIII I IIII ll h 'IIII ', Otl!II II I I, I N I uIIIN I � I IIII Il Illy I II!I�,I, „IpN�V ,I, II Ii,N�I I � lull„II Ilwr IIIII AI f INI III. I IINI�INh1!INu,1��1NI �Im l II �,INt I,lll�;,l 1, I;,I IhII�1 ,ll�hi,l;lillj� II N I I � I INI! I I ® •ng I 'YNllh'MIII!N��,I I;, I,IIIII,II INI I; I'7dNiY6 ply'I NI) N �hIN�i�,N VIIII�jtl,lilllll l{ I, r!11 N ;I�'NIIII NIII' !''I,I, We, l �!,NI�IIN�,I IIININ I!I,i,l yl N �N,� n�Vil 111 1 III �h hN ! p II indII IIY VG mlN III! I!Illn 'IIIII Lrlla N III N st � �I III INII , I INI I f I I d" IIII IIIII �I I II �. Syems ! Ih l �N I IIII .i IIN NII"o! IIIl!h'IIllll, IIµ�NIiN�t ININ'I,IIIIaIIII!I,;IIIN,rI'I:INNl$Yri, a4l NNhImIh,INP1!N'1NN�46�'�, Il IIyII�;N�I�iII�N Nr'�l,h!llIl;'Il'yNNIdII,I l I IIIIIry'II",I Np'IhIINIr{Il �I,IN,!„��IhI IIiIIlI Ul ��fIINpIII"uIj. IliIIlII HiI'IiI d'Nfh'Id,I�IN ,IIN'IYI�I', INW�hl; ugII:tInlr�u�i;!'�I n I."dI rlN fd(� ,I, Y'. IIIII NG,hIR I I, IIIII V !;II N!I' I, lh iq'hh IIN�N II,, , I !!4„ N Iu 'I,„I INa:e r,,I xLG,IrI:I,�Nb:4: N!; I,'r:l;l"IIppIoNup I,'Nr'd�II�y INI •i'JI' YN' iltm it^r;INr,;IIIrA, rku h'nll;y': r'ili°III' V�II'lllllll!rlli,ill Il,lll'V!ml;gmgN Illylll lopp �jAp�I111411 NIII'IIIIIN�I III,INS'I,!N111lINlll4^Il'IIINI'NIIII'INIr I�Iugjli : III I'NI, III �Nm'I,I N ll, 'I IIII IA ryll�'lladl l�lh III !'iN' tl,,pl �h ''I III I,N I"�� IIIII I ;'lii'1 Ill fa ;;I I ! I�11 ', I I III �GNN I. ! iil'li"h!l' lal it '!, II Inj I'! I !��JII, I INI , I 'l NV I!i461 11 II,I 1,,,, I„,, IrI 0 i' ® IIII'l ICI Jhll, II iII IIIr •,: II'uJA LdMII II III IIIm Plll u��! IIII I'IN'M r' N' III ,,,:9 I�!�,II l y�W� rr a ti®rtlCosksInori III II ry I ill@ rIINIIII,!I' IIII'll III+ IIIN','I IIN I dll I,.ml,fI�9lI,II', 1' C %IIIII' 1' IIII I IN l 1 I I„YtlNIII ' Ii�IilPll�l' I IN�IiI^Nl,,h II'm`�y,� I�A! „11N'I'!l;nI INI,�j NrIyLI IN�m; IIi�,II, d�IN II%', I., INM!J IIII N,,I I,,NIIIII tlHI�'NII� 'IPI�II ^nIIIII'I,,N IIII'''vuuC'I�'Ir;i^IidN!'!!IIIlrlllhlrl'r,l,h!lIIII;IN'6hlII���I,IIIIIII'rlIII,IrI11�1�11;I IIrNIN l?I;I:gIm�I',mI'IIN,�IyNrl�!I:1I !i'i Ii.l'I IIIIIII! N. Nrll ': ' L,h •�. i'! ,III J„e NN;•r� I,Ji' :1!I'. d ', '�dYy,r II''ll l'I'?'iN '' l tlr �l'I I , qN '';I+IId' IIII „EUilmh N Y YI,II r Il,la:l 91'. �!hPu, .lr•r,ll .lit III ,� Ill I,, r•r.,l I�NNI 1I NIN II Il; f;l N I'I N'ill'�N;'I I I' P I I I ' In'' IIIIIII' IIII n I ! Ar ,'• 'I. NI NI nNNYa!ry�l,'N I' ! ' a ." '; IIII,., IIIII 1 F, I, r rq °IL;r• 1 1W 1,'� o�1r � ! ,p ,V, I.,{,u IJlgl ql, l ^'!9 i 191= ' ii, II III IIII Inl,;r rII I 1:'I I r i I, I 1, ' r IIII "li',14N,i I' tin",Y",''III IIII N I,.N.y Ihu' r i'A Y .;!III"Nr, l „I,n i,ll, III d!II�,II!, hIIIIIIII'illli,JIIIIIIrt•II�I,�I^I IIGNryiItrNNll N' �,'llWWgrll!II alNr I, II IIINII,I 1,,, Irr,,JII ir,�,.r�I1,1111111aIr:r' NNI L61INrll'lIN I,I,;i I. :,. IiYiLrr, e�IN Il�hi F, H,F I^I%, N I !• 1 iill, h'In ,, xr ,Jl, �.•qp ll! IIII: I;NI 11„III N IIII r,ll, III, rill In 'P ra aMa :,,n1 •p �"IIII Lryry'IJ�p. I lLp it IIII rill ,•A,I N,w 'Ir Nlnlfl :; I I, I, I lriNlILII.NlI ,•.Ni �•�I1I rWIII�Ia xk�IANA„'I1Ilfp:Il+ 1�NI•� ,uII I! Ivh IIlI1L. IlI . 1�I�'NN,I, 'IrrvNIPr1II,,II1j "I. ,I.I u'..�.Irn:xx 'I'''UrI'II�h I ',!N II l,i ii• h,,II¢"I'rNlN,l! I'IIiIt I„•III �N,II',I ^ I MI,.•I ,I,fIl,Id•r ! I�� II..IIP, II,I1rI� .:r1I^II1.1 Ilnrd lIiNrNIryI�^ 11ir rmill Ntl h11,Iwm :,' ,e,N IN, r,. 'r I�1''1 'I l �,, . , '',;•.' Ir "' I:�''�„III, ! INIi NhN 'I,l 4 riI Th,, I , ,�,�PI ,1'I 1,,N.,,Pep i: .F I �, � ii ar 'N'',P .d .I,p. 'h'I'Nd:', I.r II'.Ii:: , 'a x.. r ^;I•. r 'Ir� ,I . ,., In„:, r,.. ''I r I I �N I,;I, ..•r'qI' I�LrNaIrNI.flII, IW 1.rMIIIo,•I,�,I•I N•m..Nr,W, ,1lWI 1 I,'�IrI' .7P; Wr ,I.I•IGI°I IIp�uL, I,, I.N.I' Iai,I,I IIINIr^ihf,.:,(^iI,InI I,,a'lI,'i'II�i �iiII1I.rN,II., I, '�dIr,r'ir"I� Il..IxIIINNI. , �,,. IhlII, IrII�, 'IIdrI'I.IIN�II•I�I IfI P.. I.N�Nr IV �..'Id N. I . 'IrII.';NIN'N,JI :r.,xI,IINxI1 !I'I'1.hPr.I rIrII��:I,,I.I•a, r1 r: I,!r� Iq�mNI.� Iy' rII�r I�NI.1IqI1�M1I 1�IlI N IhIIN„IIII1N1l.I,WuIII I' hrt1 I✓hIr,I:�"W'fIJ I . NrrrII II„�ll,Il".LIIlI�Ll.I 1r'IMr' l iru', !�NAIII•rIII'NrI,I, . I�III1I , 'I .rIl'III1IN,� 4.aI,rlI'ir'UW.h I,,lII� IIIY•„�N''N,. :7II mI��r1!I III.I'IIllIkl�mm�IIII Nl''Ir.IIIq"NkNrI ,NN7u.Nl INII 1 I��d.I 4�'rrN.°,IINII'M fmIIr'N Ir.II II4II yrxl luiI„N. I IlNI xJx 'INIIN�,rI 1,I��l iNI 4I.'I ,rr I�xII,1l�: Ir.IhdI4lhGilIIl ,rr rIIIr4IlrI„•!, I�lI I ,I,NnII•� IIIrIllIII ip,iiIIII1N.N Ii Ir (. IN Ir�� NIN IiN ,I.I uI'u,III1N,IIII Ia,4 IIi1,II'iIF.,I,�III ,::IIII,II:'IiI,.r .,I!vuu:NnI'Ih'JIII��I IIh. , JI lI INhI,:I!LIIt,I III,Ir. IiIVIIInJI!III �IIlI�II,I 4'a I� IuuI lIIII IiIl�NNIIt ,I l I Nr1I I I r II,!iU.xII I fI1 �„'IiI I""�I�'I1, . Na( )�'IIII lIIIIIaII�IndyI luN rI I IN6'IrInfl•rNII In,yyir+,Nx 'hI I!.I."iI I ,�Il.nlJ II,I,4lIaI1al ,I'I.II'WrI',I .•6n.•h(N. II'Ir lNIi1I., �IN �I� 1NI� rhI�•NIriI��I�I, lnh NIlIr�r,'Iy1!rI. 'I.dNIaNI� 'NI aI lI4"I'l� 1 InItlIW,;II,�.I,�P',II4�NI�1,.I1mLI."N�I��,I u��,x,xI ':I(!l''lll�IIIp lNI�I•Nr llIr 'uIl��r•'lII I�IIi1kN1iI,lAI I',nIr,EIIa1Il lN II,�N�II N�I1,rI!I !IrNP 'tlIIIltlr �ti y �..li�, 1I." ,i1 1I� II d I �"�IIII I r,"PI:'L'•,:v-e' II" .hNn.,, rI dri ;'.Ir o1r!r,1.. f^uNNIr1r"I II,�I, lN.rI,11jIlI, I! II"r•I,.lI I.IIrl.-d,Ir.IN .I,dxrIr:NN IIINWI,� M' PI. IN,IIIJ".�I lI. nI.II•NI,N, mG'dxI:7IIN,mI1 !Ir, ,INr ,I41rrNIa^'r.1I�ru,,.mI,rI'.'.Nb9I�Il�III•r!!.J IpGl,S�,...d�•r�'rrw�iN1.,.I::i.INId�NIII.I,I,,.NIIM.i I ,�I 1IIi..,p 'N ,NNI�Irw�+I•II.,u I,1 , Iur�h ',, lNurl4rdol. .�I n I I II Ii pa I1I hr1•I- 'Wh,rIIIII'lI, ,1rI^I.,rI�,I l r . , ,NIII I„,,,„ I,i,l ,•I IN I., ,I. tl ,:,I II'' i .I I; Nll,,l I,,IWN I I. rN rl� I, III M,iI!Jtlhfl. :l" IIN IIII I � '. I', n x!i,, IN ,,I� �II'Myp�I��y„F IIr IIII> I 41, il Iln. lr. NII it ,1!�.Ip� I a, 'I III IIIh 'lit rA�rl 't4: I ''N': 1 NN'r N4 � II I I I I , N I„ it I 91 ." ' � 1I la NNrN�I�.• Ix , , I I rw, I III.. , I ;1 IN Nir�l, F I, l r, A. Illl•h „�, iY� fk tlnd.r, '111 „Ill lhq!.tV ',J:' rNkr � 'I ..r,ID„y u Ir �, N r pr,,!fll,Nl 4•, I 4rll b I'.I,I � •"� I IIIr .. I i,. I, I��6 N III ��� FII', I .NI 'N WI� •. a �nII �INN�II!', N� I , � N IIN .1!I I I 1, i 'I-,r I 1 i ',I''NI '�NIN .n r J� i � . I a. 1, Nl nla I IIII. ,IIII I uI�,VIN, „1 41r.. I ,.... .•,I, , � Nj. .,III Ir„N :,I� I, Ir rx ih ,,I, :v'I4+' h III ' iI„ :p 1 I I; Ir11 Is my, I I ,1 I II,Nr I, I 4Y 1 I r.l I. N.'1. �I.1 L,I N •n NI W : I r IN Y I I hI LII I hl a..I II I � a N�r I I 1 I lei: I I al .rr"II I La III I li,ui �^I n r I •"0' a.l J .Ir I I"I F I ..! r I V It I I I ^! I I rvN I"I ,I ,,, I ,.I � I I a r I' Fx rII 'IIr I / rh N d x I M I N I I I Iu I'ud,,r • , LI r FY' �I '.,, I I I IN' ,, ""N WIII• II h dINS; � 1rx •I. ','� rul'r• � I' ^, r! II I:NI I. all 1. I1I I I,. I I IIII n H.r L' I 9 rh I G I I I A Id.l >V IIr 'INI 'u I II I: I'. -I. I r4 I h �II �IL,I I 'h I WON I �.I � 141 ' II N � ,•x r I . i ' N�m� III°rN v,'� � I I "I.1,,, •I'�I. �: �., ,.. i NII Illy ,N,' II 1�pp rm I ! Ir 1 .a III. 1 �� I 'I ' III �� MIII dIYI Ir I N II I' 'I r. I• 'I�.A I« Irr Ir 1.1 II. Ir •I Irr n .11..I I. I I I I' INaI ! N' h' I I I III I I III I I I vl r 1. I INI 't M I I rl I x. l UrW N I� 11.111 1 w I I L Fr'r mr 'Iy ,IIr:. I I I I II. q I I u uu .�.�xd �• "I !� ry., •'�1 �rNr Jryp� i ,, Ir 1N . I • I r I Y ''VNI��:NNPP .i � r IIII, I .r �,�,,. '. ",�.Ir 1d� I ry" r ..,n) n•, .r, ��, IN'il': 1 r N I �,, I IN .I I r a ^'N'Irx• I'i I ', . I �� r 'Irw. L.. k. I I.rJ II :�6 I I 'I,rl u, N I r I�Ix , II� .•o •. � r,,I r, r N..,Phr I r, G I... I� N r Ir,ld � N n,N• 1 I I II NI I� x.�Iltlirl �rP N•I C�•I I q yW'I� I I. I N 7 ar 'p � I I5r � I 1 pr o�V rn..,. 61 I •,I IN Nr ^�. P� III I al •N.. N' I . , r I I qx,x .,x'I �r.ul ,' „,rl I I, WuIry r, ' I i. ' r! . . •I.. h'f 'I I I x I"II NNIINNN '. r';•', ..n ii III , t„ IIr' II ,.. N I" I I 111 "' „ I .„�,; I.J i i < ••:I 4�, ., I' V N I: m ," I� IW!I r• I I I Idel I, III 1 I ,W I I N, I I r. rNx I I., r JI I I I „u 1.Id. r 1 I Nlx ." �xI rlr II I q ,. ^rrrm .W. .I'. : I, I.i •. , I I ppI r:. , ... r. . „ rarr J .., „ I I,F • I I ', I I r r I I. I .r : I '", ,- I N I I � N r l ''... �ll�INwIXI� r,ln I a I rr ,„ I,. ,".. ,r; ,. Ir,.:l I,� I rl i. +I, II'W IIIIn "uf li II',I II •„.„ :,m, l: „I'i'V : ,., 4, ., l i N"tl' I, ,rill ,'!I u!Ix„I. r I I Jn�?�IH! N vy ' I ,I x.lrr• , ul, ��II. I ..h, r A r, � .. 71 +, I I 1 r I 'I � .. „I, I II „m,',.1 I: nr ., I, ,I, , N, 19 P, I xp '.. , I „{ d I" n I ••I ..,r I rI""I I „i 1 Ill rr l I I, ,. I I "i,l I. a r,a, III IKYh I k,.V I , d,", .:,I,!, I,r..r a 4 •,II: r r.,; : N ' ". „„ .rWII ! I u .l c Ir. I..N• I IL•. y I I I I d ^, dx , Ih.el .. I : I „real , r , ri •: N!" ° • . nP' el , 'I , , , I '.. 1 ' .I I I+' i ',fM ,I I, r,l l IA I ICI d I ,.e r I ,d I, I,I ', N� Y ..•{ I I � .. , N :, ,,,. ', 1 ." •µ. v I,„,, I• 'll � I ., x L, � rru6 � I r I• wn„ .• a ,, ,.,,m., , 1, .•. n: :! ' I, r ,i .u�, „ r !h, N I N7, Lr 1 IN N I .0 N Iq h n l l I N I ,• N 1 I I• I, �I III V rq�, I' ..,I I rr. , rll J 4N, 1 ,. I, ! ,, I I I, I h� :.. .• I r r I II "..� 1 t,1 I 11 I I I II I I I I 1 1 „ „• I Nr 1� I i II Ir. IV a 11 r4, l.r 1 I NI a L: n I I I I I I I I I IIII t I .,ilaaul II , r.d lu '1 I ;I I nN h I I l' rr rig h I I •N r, ! I n F �.� n 1• I N ,, (,, ,. ,u rr. a a"I "J ..I u1rI , „.lu• � r8 I I I I Irl � Ip I r 1 4 r. NI III .. I ir, I ,I I I I I. a. L� I r r „,..(• �. I I .. I I I r .., x,t. IN r, r II 'I r INII b•I""I,I I, I I r l I III I I lid I I r1. N I I •II q � I. ,� I ,rrr hl� I �+r r.11 Jill 1 N I I I I.i I 1I .r� II �r ,�, ,.I.. I I Ir�lr 1I: INI r• I I, I I I -d. aN �,� „� II,u N I. I.r✓I I I r rl d ICI �u• �� I rr Nx I I I „ I I�:, , I' II IdI 7 Ilan 'IIG 1, � II I I. I I .I ,r IIr 'IrII Il� I l l I I � I, n I I NII I �I I f l � !I��Y� 'tl,,, I � �.,;� n. � I N:� NI I 1 '.rN' 'f' I I II I � I �•. • Illm I ,III^ I I I ! II I I' I' � q II: r.: I II I N, I III ( Iu IIpI ,lit rtl I I I I I I I r I: a I I ITV rh II I Ir I I 'I. I� Ir 6�• I rl.l I 1 I I I I q J l IIr I I I I.r II. I � it I �II I I : N Vur .I Ir •Nui ^,N� I,IJ II, Nr L; I 'giNllll I� I Irl l . I. II I rll II III I I I I I rrrr,Jlr 14 I P I B IIIJI 'INNI,i'+' .r.r111N, I III I IlI''I '�Ir I I � I• ' I II I I NrII II I N xISou" I I I r � III I IIIr pI I I I . � I IIII , I r '•rx IIIr � I I III ,-,, I 'I r rn Nle, III I I� I I I I I rl I I rl I II 11 j 111 I'll 'I � I I l i I. I d 1 'IN"' I I NNI I JI'I .I �'"u,!N IhV •.o,�f 1 P, r I I 1 IIII I II I I I I" t l l I I xh 1 I I I I I N I .I � 1^I I '. I,� I '•I Ifl I '.^, I �.� I 'L.. �, pN P•N ,,.4r�h�nl, IIII .. kr, iI „ I 'II II IN,rI •r,i.'i r. n„,I .,• r.l , d.l ! III ..: I �. � I I I I II ,I �! I: I I. ry I FJ Ir. rd I I I � I I N I I I I � I III IIII I �I nl I I I. N I� N NN Ill,rr N I II III .I I I � I '.• J I �' P � ., I,N I rl4 � l d I I I. 'III i 11 I •I•. Lr'•II I NI! I I �N II I I I I I 1 I I I ',� Ip�pgl �apN I t N � I^�I I., .I I � I•l Iri I„I LII, !� I,i •l�� � i p LI, 'x" Ir'I '• I fllr NI rrl INI I!, .R N:I I i N I r r. I •. b NII 111' I al N� II ��e 1 FIN ' I lav I I ,n Ixi 41 'II N h II J ICI 'd IF 1, i 'III " .LI llr'iir ! ,I I N. 6• I'ijlp' I I N, . I I rY I I 'llti^ nI :h I I II I r'rl !:9 II•p I I I y I I J ItI !:h.. 'L. i '' I. I III I I , nn!..r al• 1 I �f III r1r I!J�� � 161r'lur.vlll N I 1 I L• I w f I �:r I:,. I rrli. rr ' IIr NIF 1"II' r I. � I I li iN I r I I I our, II FyI'� V .I .¢• �.I .I I rLr II I I rII.^ 'li I:J'r "r� 1 N I IIN yp 1 1 I, it"• " tl 11 I V 5 r 1•, I I � IIII' "P'ri"' I I I .L.I I N I •I �, � aa III I I. I ' I IIII^F,I: III INI II I I II I"' I a 1, l l r IIIn INI II I I I al I I I I INI I I 1 I' I 'l I I JPn I I 11 "I r III hl�l I, III I I II h' N q IIr I I�N � � .I. I I I'I' 1 I 14 III I I. I 1•I I, I { 'I I I I I� I I I 1 II I �I 1 I N I IIII 1 i N I' I M I II. I. „ IIIII II I 'I: .I INI I Ir I �II I I l fi;N, I'n' ''I I I 9'1 I i" N„' I IN VI I•r I ul I I I I I :1. NN• I. 1 l.r I I I r I I �I I I I^:I r III I I II I d N,II I! 11' FI �r IrII N g I N I II III i I fll,l 'rN I I I I I l hl II IIN I„ 'N'II I II I I I. r I I ,1 N IIIr II I � y I l• iN I I I I Il: I I I 9 r I. I .IIII I I ,;III, I, �' I I I II I I I I IIII III 11 u a I I 1 IIr II lr � II I 1� , IIII I 'I r I 'II L. I I Ir h l nl I 1 I I II I I I I n I I I I I LL. I I N I i t I II I IN I ,III III I I , I,I I Ir IIN N I I I n I,, �• II. III I I I I; 1 I Ieal. 'r I V I I Ir G I q I I IN I J rlllr Ip 1 Illll: I I P 1, I I III '@rI r N N IyNI r I I I IL' I. I'll rl' III r I I N I 111 � I I I I. �I'f •� 11 III , NI I� I. III ..I. I � ,I I I III' I II I 1 LII 11 •• : I I II•I. II hINI .r' I � i I. � I I I I I Ix r I I III IIII, II I I � I�I' I I IIII' ! II I I I rrdr' Nil I I I I I 1 I� ahI'I I'' I' I I�p II I I I II III I I I I I I I IN I I I l I I I IIr I'r 1 "l I I r� I I I I I nl I II I I �I I 111 I N I!' Nh I I I I I I I II dll II I I I I I I I II I I u N III III I I I � IN, L, W ", IIII III I Ir I I' I Il II II II III, � I � I !,r�hr,, .NII" I'1 II I I I l' I I I I d 11111 IIr II 'I I '� I' I I I ..INI Nr. I h •I I I I I lr' l I I h l i' 1 I Ir II II I I I I I �. I I I III 'III I I I I I,. I I I•I I I '�� r, �'!' I II I I I I I I I I II I I I I I'4 r l I� I I I G I III III I I II 1� d:!I I I III I I I 1 I( r I 11 I I I I r I I I I IN N I 'I I h' r l II I II' 'I I , II I I I' I I IIII rP ,I I. lI•. I II III 1 I I rrl Ir, nl I I� ,IIN I 1 I� N I I I I I III I' t I 1 d II II' IIh, I 'fY .I 'rr II I II I Ili :vd L. 'Ifs II I N' II i L:MIIIII Nr ' 1 N• I' � r,�r I ,I N I' I I I41 I'N II lal" I %� II .In "ull 1 W I I .I'' •I� I. I 1 I I I � NII ,lil r � n I I' •III (: ' 1' I"' N rA•"!r r I II I I I, �d' !II rill• ,� � II 'r LN. IrII i• J 'Ill I rII lidl I I IIr I II II Ix ,III II � I � I I I I ill I I N II. I I I I I 11 I I rrl;"I I h I rh I N I I I II I II I x l I i I I I .I I� III II�I I I I� Itl�I 11 I I I Irr I I' "I I I I i I II k I I III I I I I I u I I I I 'III'"rrIIIII II I I Ir'I" I I '� �• I I II i r. II �V I'' II N I "''I I I IIII 1 1 I I I N I 'I Ir I � I II N N 'h rI1I I I I•r. 1, I I I I I III I I ' I I N I I �r I I IH I I NN N I" h I 1 rru, I I N I I I I I I I III I I I II I r rl I I I NI I I L, IIII I I� I I 'I II II I I I I Ir rr4'' II 11 I I I I I, I II I NN ^1 I '.P II I I� II III I 1 I I4 I l II' I IIr I. I � I II I In,ll IIN III I I I I (.I. III' I I I I 14 I r II III r l I h l I I I I II h I I I it I I I I I r I II I x. I I I 1 NIN 1 I I x I I I I 11 I � I II IIIH U I r I I Ik • � I i I I r Ih I N I ry I, Ihl I I III II I I I N rr II II II I II I I r II IJ I I xl I I i I I I I III N I I I I I N i I I I I I dl I III I II I I I JJ�I I � II N h � � 'I I,II,NIN„ III IhII IIII I I IN N INI II'pryNNNr'Nl��l'l Ih,l N� �, ,1 I Pill h1G�II Nh I INIInI�I IIN I IIII I INII 'l I NIlI'IHINI'GIIII�I,I Nlllr ., I;I rr'N 1 ��NNI 1, ,Ia 11 I I,,N,II IIN lN'NfFI N4, N ''"IwNJJ11�I� IqI1frIII �IhirI, 1YI. Ir1N:H IlI' 'Ir1i ,,II�I,hrl,avI,r1IIA .,lIrIlGu Illrl x11�@I".I•r':I'II� I ' 'r I � JI,n��p, r Nxx r MN I I.r I II II,•r ,, rlr !f I .. , n N I, jk a I I I . II II I 'Irh I , I r � Ii. ' (N Irr II''I' el . IN� I. 11 I I I I I I. II I I I I I W 11 1 rl I I' N I N+ UrI'I'umiGInII�II"I;; NI P'III"IJlllp l�Nii' IIIINu I , III I NIIINI q ( dill ��'N h I� ,I llllll I,II IIII I Ifl h d NI hI,IIN,I IIN( I ,I II I NN IINININ I IIIIII�N�I�CNINI I1� li I�!,h' �lllilil, J�NI Inllll NIN�� INI NdIiIll! II GP�i , I 'I' I', .djIIN�! INI � INx�G ���ANiIN I 1 I�I ,,mt �;„hmral,r• y;uN, J�i!:I I'I r� I'rl',Jl�lr�lal,i!, n I,,,• 111441, Np,N,I,,�'N,!NN�','�',,^o 4,Ip�gllgp,"I'IF II�h INI�mrlI:r oudN 'tlIr'MVrN.I'1 I�r�i'�,I �ddIrrti ,•lIP , r Nr''•Ir1 IIh�I•,Il',. lrIrrX�',,IliI�bII7rr!.rh lv;IrlhJI I.nr'II•1 ': I'll.': Ilar ,r� 'yI I d'IrIII11r,ln,,r .: II N • rll,ll N -II I^"r I ''I 'ICI III II II',Ill' N I� I r „I I.r P th n rlll,l .. �1�71 �p I r d ,a;''.I' I:, W.I I III I I ,.I Xy. I N tl.l 1 I II IL1 , I .I u I I� I h I •. .'I,I,• I I �� I , � 4.t l 'I 1'r II 'I P ',,: li I I I. rl N. I N II � I N I 11 I I I I' iN, I!' I. III u 1' r•x I I I 1 I I ull yl N I bN INI�I�I II III I� 11 y 4' 11j� dlll p � ill II'II l', I 4rypryq�;I'ryI��N �IN,, i III �IIIIIN.NII 4I1' rIhII N II j•�. !.IlI.N.INIYI II I1,lI I p!'rY'.,x111 Iry" I .I r ' N, r ,IIII Ir W II Ir I h i rl IN, I'Iflryl�u� iII II, Ii 1'I "III II' I Ir I"I i �I I III I. I',I l I I I I ,IIN"IIl'� III I,I I II ' INI I it u mlll� 1 ' NNN I hN NII IGI I IIN ' Il u.I• III � i II�I;YI�IN' d III ' �,, f II,I, ��I'I fill �1N Iiy ' I, uNl, ul aim' ,I:!i I N.I m •�,, alll '�,, I4I .yillf • 'I,1 iul1 rl,i trI•I1,il J ,NJ .'IhN'I1r' •1II„NrI1l,rI.1rIJ IIrNI,lnII„!uI uA,Iry,: dur,rI. hIN,j I1!N it l,. r, , ! I 'IIIII I„,N I BN, re:� 'I H �' '" I I I 'll , I II l r I I �� I r��", '„ r '14r I , N1 I. I N r N I Ir m rr :I it I I I I I ppr I I N I n III I I' I I I II G �!IµM�Iy i I rIr IIr I'I IIr I I I �I' I I 'I ! I r"I I I I I I I ' I I l 1 I I I rrlk II I 1 1 k I I I I I I II. rI rl I I I II, I r I I, I 1 I I I II I I I I I r I I rl I I I r N I V r IIr N I I I I rJI I n r r l I I I I II h r I I I 11 li IIII I� I I ll II I I I I I 1 I N I r III I I I I� I I r:III I I. a I NII I� I 1 IN I III Il I IxIN 1 1� I I II, I I ! h I I I I I I I I I I !I II IIII ,III I I I I I I .NI I I I I 11 I I I �I r II N III r:: I LI I � I r ,r G I I I I II III I I I I I 11 IIII I 1 I 1 I I III I I I I I 1 H II I III, I NI I I I I I I ll rl I I I I I I I II, I I Il�rr �I I r I. l I I 1 I I r II N.I IN.� II I I I I 'I I N 1 I IIr11 I I,. % I•I I I II II I I N I I I H rl N N I INI 4 I I I I I I I I I INI. h I• I,•rr I II NN• N .�I � I I i 11 II II l I i. PorIIII IIII I I I itlN�WN r, Ill, I" I � ,:.rlll ` II II.JI t11N, ,'II1' I IIr I � r Ir N"III I I ( VY IN I' I 1 % N I N I I I 'Ir III I I III. I N I I II I I I .III I I I I. 9 I I i" N II I I,ir" I N I P I" I II PI I I 1 II � I 1 J I I I J Y I II l h14 I r N , I I •� III I P I Im IN I I I. l II I I l II I I II I I INI, jhl r. I I L• I I I I I I I , J,''Nf :,rrd I I pI i I,I' r II .• I ' , ' ., ''I I !I I I..I I I h llal I I I N I 11.' I N I� I i I I � III 11 r NI I � I 91 I INI I I I l I I I I I I l II N I . I I r I I I III I 1 I II I � d I II I IuI 1 I I II I N N I II IIII 1 J I I I I I .III N L Ilrr I IP r r r III r I I r 1 i "III IIA01 r i i I I I . i I I r i p I � I III pry N I r N �I I 1, I:. I I I 111 .,IIII r I �I , I III I r I I r. N I la I I I.II I N I I 1 I N I I I I� 11 I i� N N l INI a IIII I �r i I I I rrr h I III I I, II I, N I I I 11. I NIII I � �I II r.. r I I II I III I II I l I N II IIII � I I I I I I �• � I I I I I I r rl u N II I I I I Ir N. I I. N J I I I III r I I I I I III �I I. IIII I rr I I I,Irll .I � .,. I�I r I IIIII I N I I I � I I .I I IrNNh.!IN f I I I I I I I II I I I 1.1 rl I III I I I I I ul LI 1 I II I I I I II III I I r I 1 II 11 I 1 II II I II � I I Pr L I I� II LII I I I •, I I I e I I I ,Lrl II I I I IN 1 I 1 i I I I I II I I I I I 1 a� N I I II I.,I II I W I� N p N I ICI I I I I r r IIr I i I � I I INI I I ,III I N I II Ir . I I I II I I N I R� JI I I I r ll :I IIIII hl I i I I Nr I I I I I I rrrl r II I I I I r I I Nr d I I I. I x nr " ;. ;. Iul 11 L xlll II'INrI�III �II ,II II l l r ,w I II I � N I I r Ix I � r �II rl, .I. .Ixax V„III IN G II IIII, VI II p 4a I hII „„ L 1 ppJmmII el,l ,1•G Ir,l .. „"ilr I , i , : I. II,:•I .'.n �'l�� I'll, h'hI�,��,GNI llllll INNIx : r! J xr.� I, �III,I.hlll I I.,1 ,h, II�NINHIINL� I� I. N IIIII ; 'Nq�ul � I I III N1i IIr l . ,. ,l • . L I II, I'I'I,,� I,� I r �!�IIIp�pIp9� I �h IIII II!Ip�plp� I I .!.! I . I ,� 'I II �III�I�I�!� Iii�h�l!NI��INI NIII IIIIIII r "IIIII �''G I I'II .,,!nll ,, I,IxI ::Ur :' xr '.:. ,I' ,, i ,,i ' ,��':,I II �'�� � ,IYp, I,, .,, x,•,r:I •: ;, ��:.rl I �I I,y N:r l,� ���I�II�.. IIIiI,,II,II;I�II� n I I I I I I I I I. II I I � IPI I I� I IgIIIIrI,, �I I I I III, I rII r II I I I I I N I II �I� i:•' I I 1 I N I I I I 1 h I Ir, I III ,I rI I, , �Ir,l I''. fIryII'W1 II I IIti IIN"rINh�I:1 ....,IImHN I l I II. I I r I I 1 Il 1 I I J I P I I IN I I I I I , NII i ' ul' I III . ar ' r i WAY" F I N b I Ns ^` E X AMP: L'E 1 41.11 N •! M1^ N%I �tl` N ��1' ; �L 1 4� i l ��'ukE r '� T �"d F '*f W'yl� m Id I F 1N �p qr N P Fi h F ri. I �d a iN. Na pip IuN IdryN, 4r "'yy I d fi y �d a x �I B l II Nl 'I ,w a. �;� Cfl. psi l lutiI C� Xa W Iflig- It �N �o��l l Idl'I � '4�t�lr, I• d � tl µ `, • `,jjx � n N�li it p 1 �r� y h L�g krFa Ii �Ik� '7t VI V � a � a N m• Ihh� I.::� I III II IIII'I I ^4P �dr l�l IT 4A9 I �` �` IM 15 i �+ " 1 C �BI IN' H!F N! 11 Ir T 41u1 hl I Cd ° paj q t1 �Ip �'� �k y IIII I��II tl'FaF4 ry`4 �I �C'' adn.- Illlhl a M6'�,�'r�Fy�IIF Mdl P N I'u' jII Ji Ids �1 _. .r.'fJ`rvP� Y Fw w' n N 1 by { FF r+4 M �}. r.. r IF ar„ h •. gyp, '4F N. n I w N'^r yi a I,y,NII'; 1',�.uN .f 17 -I. 1 {, day' P k 'I ,.�j' .. ,klP,nt rP�^1 ``II'' n� +4 �' �'f d I dW r .i'�+ ,�,pa4 7 4„I �Mry.IIA -' :i, I rvl • r • r�. 14 pp I"dyMY Iyry�m�r .., „° N m `,T�, ''.;n"I' u `N • !1"I d�Id M'.L! '� la; �,I " Inl ,N — .. ,: �' a, ;.,., ldbry IIII ,y,l�ll;• r "7 3Nir: 5 ;ill [ ul(q., xn a� ,1i ..�e ;�:1'r 1"' -r.) c 91pry'd TI" � iIiIIF,:�� _` !,I � wy J `,�, I � jr ra 1 a���f .�•rvn Rui' IM .I a�' d,r F � C�N"t� "� it C NG �aiT'��iryy" ,��t6 q "I'" I Nk- �•''C;° ra' I ,"a° i.. 'C r � - I I II t p� .- � It r ;., tdl' 11..� �E:+���'�'��j'!'� II �,• IIII �y y II�� ��u•�,�Ill+�, ` "' k 3H �.!G;N,, IN:'F,�.� 'Gel 7U• �• f. �' �.. � �dl'���'�I I I � f ,y�� r I II �`' � 1I i,� �,•n:= ��. 7".:� ��.a� •. � L ,� _I: NdH' W�� -p• Vy.� l �,.h II I a n a '' JIB" ,�{, l:q, �. -. NI: � I ..�I III' I ` � Igfp� � N','I � Ir I��I " nAl.'.J��'', , �•. � ;.'(�. iJ 61 �Ilryl.i'�"� I�� r�.�� r I .yl�Cl�,l`E�7,� �ns-°d�.�n�I�a,l.•b Ihtl',,.��a�"; �..1�� u..a Id IIII. � I Ntl �'I I I I. ' �iM � yy I.f1'aM.� x:: 6 ,�I •. .. �t:an . � b I ' �g � ti 1 .l l I a WV ti', n xlle ' NINF - aa� �. 1 I � .� '�° r t " I 1 � I �,• � ` 1I� �-� a°!y+�2F+�'+WJINM�h44.I�.IW'.up,!!�kll�^� mnm�yjn al plll �in�d,nWm^�Il w��'�.��:I^: Ijt�•��„^a�i y ,�. ..a� "�_ N'�,. .�;�8 -�� � � �. aln •�. w I'll INS � ��G. a✓i �+ ud11�4wuwu�B 9"mi9l�mm llwt16p�9Mvur��mwadiplllil�d�IIIUdIN;nplmuigspin'�Nh� ' l dry" ? y� -- � �' � � I �rvi ' t � " q �ry r�n3 . ��a�Vi�� n � I� -�` .n a II �' N � :,, : nl un,,a•,:mk �, h%IIII: „i I L.�IB�11Nuxm�a:a'VNN. •- m x ��4du�i�� - _ � � W a l I r uhI na a' ,.. e: �. 'llau m!ml IflV71P!gliilllllAlll uV10 I I� INu�luuu It'4 � ,. qs,•, a. ''•� ,. FIIII 411h�1u I •rl � I ,,II' - -_.. ' .. . ,• nnid III ;Jt�IN.. _..__ .. ...�� w�l��,��h�.'r�amyr"_'" �� A � I �i Yil I I.� _.---•:` "��dl � Ia INI r �I�I'i ti' II'� � u I I I rll III Iiu;iXlrullll IIVIN�I�'arvn��'�" - I J ,I I h,11.'lu,� ,. , I , N I li II II IIII�IIIIIIIIV,I I I •I , ,� k , II I i I7 �N.I L III I .II.I ax�hllll ,.. ,n:� IN lu �� II II L 16 a ,II,Ir vll I �I: a N,..,.•I,„!t^ a,.ILI N..:, C IVII'�I od.F .In 'u ,�:Itllm II �� �i III II I�I°� I�� I .I�I Idl .: p, l "11'� � I Iullr l .+, olln�•,. I. I I „ , , w, a 11 �, IN ICI !� ml..I :-- � � � � I. I� � I � I � a:,, �-_." � , ��II III. II��.� It, . ,. . �. I. ., r. W�uI.,N,. �I�.. � I�IIa. n�v�,l �, ,.J ..l:l � a ...III ��I.I ..�I..�,� ..L,... I. h, .. ,,.I I�I,I,I„•I� �.OIII II�I.II.I�I�a I II�I I�I.I.I. ���I��� �Nn� IFI IIIIII :.,�1I .1-0:.n..,I,i,l m.s", a�I�,IJ�'� NdI_d�.i Iq.Iur III jI .�NI ry�^."la�'..I I uI��nI d,w,I..,mhI.�.��, •r-. ...a.—.�..�. "tI I. �.' �,.I�I I �ry „�Iry_ d1I�rIn, I�.Li: I.ux,,_�l. .„,. l_. .h-I .,.....�.«ue.:.�.tm.,,. m�h,a.0.� lI,�v.�. .�,.�� �IIi�__I..�. IN�.�.�ii. i..�..JJ9r . I . W.��,!YYI .F.k,�.p,,lin�i-e�,.a �. �.,�:.. ...,,pp4.,I.I,I l �IIIrI I •q..I.�. - . �.�: a I � �I hI�� � Iu IiI�, � I �II � �,I���.,II� �I�ICI I � IIN � ��I I.��I �,�16I. �i1'n I IIN�II� I.�I I I IILIII .I1 II II �I��I�I, �aG� Il,,�II L•! .,,:eI+ �. I�.,�.41I.I� II,.;�n,9 I�.�.t IIILI�ryLILI.VI.,.III1II, I7, III I N^IIII IIL.l.�i.I l .,., I„, .I .h.; . ,, ,,,• a�� n� �, ��I., m wmn.�-:r,,l, I ul, I,I,III� I.II I .. I �,I �I, IINI�, ,,�, I I I : I N,,..�., PoIICf�llll : ..L. N � ,'�R�A� I i r l J Wit, m .� II -•� I � I I. I I I I I I I x --- , x_ . u� aml a n� I !k1!�IyNIINI� : , ., x�l• b I _,... L.. I I .I•� .,u � � �I , .I Il I I I I,�iI, l i.l 9 alll u N � ..� n ..,wV.,a��,Nl_ ..,...:•.:. ,,71 l , �, lu I , �°i "�P'�I � I ., : I I i ,I !.. I !N .:.: ........... Ipm_,_ .. ICI:: I , I � � I � QI I I I. I� � . � II� �� I P � .•. N..low. .Ik�'�' �a--_,.,,. . .,., .Ib� I I:.I �I o.61 II I,I�, ,.III I N .._ _,.•... III I III II, ,�I 1 I III I� � I ' ka ��Nw4 IIII III Il,lpl!CdP II' � I IV, ,a.; ' I•,a r., I L.. IAU� pay.., nr If, l o''d,I N� � III, IIIII m��IIV�rI, ,., , atih7 , ifn•pYjlhb'�hlNl'IUVII�I!����,�II IIIgIII��llll,ugll II IN .... I. h.�� . q,n; 11 I I „� h I II II II I :' I NI II';�, I i,ii II �h� II I I r.;r I �I•�� ��IM4 �a ..,. it I � I� I , III y I II PI q I' I'I I. V^ II III u.• III IL, i. nllh'il�n� i.IIh! ryll Lp; r'xx .�. III a I I ry I III r Irl I ,, - N I II��Ippuu��I�mII uNI I „u l y y. j N of I� NI�'ll Ip�a III .' I I, ... u l a I p. ll' IVI a � � � i• . N I I u y�.0 Iu,�li��dBl.l,. .ell, II I� I :,� ";� � ;�I�rl"I. N y .dwNl „�.•I. I�III�iL':.d Ih�'�rhir�wolul I 4Ni1� INI ull, d II I C I,I Blld 'I ® ® ® m m ® ® ® m ® m m ® ® m ® ® ® m WA Y F I N D I' NIG ,= EXAMPLE 3 C p IGINNIq IIINIIII IIII IIIII IIIII aI III „ ml NaN NTMw 9 I lu l 'I I I lul p I pllpp iirfi IhII lu ul ylP III IIII I I NhII IIII II I IIII (I III III III I I I I IUIG71 Iln. n MN ... r � •r ,,,,,., I m � hll I yl I �I �,uWalIyAiQNINIw11111dN INII I"udl'I 'I I�I�P� I��il u. �'w, n �w In, A ' u Nil dI I III��rr u INN IIIII fll u N nay I � I6 �* II I u �nl nl � w I ' hhlM1lll • ,ryalplC yy � Iw �» YkN1 IA„I 'y,l"�. IIIIIP II IINII, ::(II III .IIYY�'ll. ". 'll IIU^'191 A Mt I��I IA alu l"i"4 "I m� I"'R� IXNII�1 lal �IN,W� MIIM� a"''�yb ryll ry�,y�' Y �'"`� ;I� ..•� ,Wyk I . I � Pwea ^!. .II. _ �u .�'�.,,, a �I II Ilpll�illnv.,. ��" III IIW I ,���NNI�� �Idl � I p ll''I , illllax � �lml rear *: I, .I tl� W� I II' 10 RlIt f 1N 11 11 a _ r • `*, � II I ' µ•illNll, r m;� �''�! IIIII jllll ILII W'IuIIINN u ; � I I INNI mna,M � 'y, � + A � . � , • 8 I I III l ONE » i�Inpugn�mlo- nau� IIIhIGI III If I I I IJ�iljl�ll�iwl'ald INmNm'�`,�6 P N W yu� �. •" : �� . ,N'J —+-- him II fII III II' 6 III I' i •Y S I YI III I cI 4.�.. I I11'41P VO vl I III III N dll I I I'V II II I IIII I I � o A ` �, ;� ---,..`== �ilhl' Vllllu�l h h IIII �I u�I III�I�II IIIII III! Wl i " ul` ,'ryI ��ryp���ppNIryII III IpI/y,II�I!ry.�IUI y ' IIIII IN I. . a W InA4VIMIIIIN�IIIIIIIINl�NIII NdflP I I Ni1 Ill .' ��N �N IA Ildl NI�III!'NIW IIIIIIY .IIII IIP; YI Y` '• �' n"�`�`,,V.',5�P�* F - ` e r�*III MflINN Pul, N sills NIIVryII ull+ll IIII��INI VI 'I InI"Illln u w u�NI�NIIN III �Ihiflhl' 41��p N ��� Id IN�N �1�' I Illpl »"a I IN,IIII J 1N��1'9r�N INWIu'al�I�l'l'Iy� �it IIIII ; 'u yd.,,l, , .urmr, I b �� N!��I@IIq��II�INMNIII�JIp�ll!m IIWInn41N� nw» .a � glr4il�' 9 Nd �I Miry qN" �tlll �II IIII I nlnP' 1 i.l I IIVd I�NP41 I�NIIN � ^V, �, IIy1,-i.N N1111 ""mNryq I pl 1 "I JI I N�dNtlIIpI I II �� II nWV YIINI' w.'I I I d1 II'l� gI III 16WIIuT'IGPM'tll'�"I mmr�mrr�md�gllmynina. 1 I Iq �mNm� r�". ':�^. I�1 mmll .rI�N II,^I,V N Nll it 'lulllll NI nl �ppI ul `N " dHl�llllillll amu Vi; l I, IISS 4I� M'I 4 i + mld MINI KNN� MiPAII i"I I "I, I lu 4 1 � I �dlll'��I It Illlu. '��I +�I� I I I. " H!I I� � N- �Pmmaa;mwluumpvumuolpuwmpaall"M�XI'�u'Nan!ut�i�+marr"'"� �I�ry��Ipl �����y '.�„� �' NINI MIT tit, IIIII u� �IIIjVNlwlu�IyNII "'� —i JI P.' YI ���.� �" " o .� �� N�� .� .„ r�� �`Ir �""�,mm�n I�,• "%'AfMiuh'iwLli�,',�N:aemwauy.. + —"�.°a� 'a�i,. � IT'l :INFORMA I IVI j b ems' I, p 'I R ^IIT� _ I I rolww I' a N?"� rye . � / ry, itI! UU I IN "M �• «, �I 4� i'"71u11 �11 I�i d I �II� ,.,,,„mM�uWIGM1AAY� � _ r Y I � n � I iM ����II All . I��ujjjI IY d iI I�PI b 4N ti �l l hF� tl I gl II� -.urin i!AtlA p�A �NdAYJA�H m9 ti IA p m unwwim c iam I, I � 3-Sided Information Kiosk - 6'x 4' displays ® M ® ® M M = ® = M M M ® ! = M M = M D 0 H U U 0 P I D Newsracks As part of its effort to improve the streetscape in Huntington Beach, Culver Amherst would like the City of Huntington Beach to consider the installation of its modular newsrack system. Photographic renderings of the product are featured in the attached pages. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 m m ® m ® m m m ® ® m ® ® ® m ® ® m m ® ® ® ® m m m ® ® ® ® ® ® m m m Ii BOX NEWSRACK ,Z- O FFS ET; CRESCENT AD DISPLAYS )�6' X null ' 16 Ihli 11111llb l nlillll��lll ',JI��Ii II�lili L, II I lilhl� I , i�; a��lll�lll��irupllhll�m�i��,�N CULVER AMHERST, LLC m rates fl cl Il LI [I History of the Proposer's Relevant Sales & Operational Experience Chris Culver Shelter Media 1983-88 Built 1,000 bus shelters with advertising in the Los Angeles market. Shelter Media was sold to Gannett Outdoor in 1988. Transportation Displays Inc. 1991-94 As Executive Vice President at TDI, Mr. Culver redefined sales and marketing and in three years grew revenue from $110 million to $175 million annually. 1 Mark Van Fossan Patrick Media — Eller Media n �I As President of Patrick Media, Mr. Van Fossan was responsible for developing the company's growth and expansion into the shelter business. Mr. Van Fossan ended his career with Patrick Media when he orchestrated the sale of the company to Eller. John Hall Shelter MediaGannett Outdoor Co. 1983-96 As Director of Transit, Mr. Hall was responsible for transit properties in Southern California, including the revival of the bus shelter franchise in San Diego. Prior to joining Gannett, Hall negotiated several transit franchises, including the one in Huntington Beach, CA. Outdoor Systems, Inc. 1996-98 After the acquisition of Gannett Outdoor by OSI, Mr. Hall was named Director of Transit in charge of Public Affairs. His expertise and dedication made it possible for OSI to secure additional key properties across the United States. Mike Culver Shelter Media/Gannett 1985-97 In his 12 years of national sales at various markets Mr. Culver has sold more shelter advertising to more national clients than anyone. Mr. Culver's experience started in Los Angeles and he has built shelter sales operations in Atlanta, Cincinnati, New York. Culver Amherst New York Apple Bus Tours The firm owns the exclusive rights to sell Super King and Super Tail advertising panels on the exterior of 60 Double Decker buses in Manhattan. Culver Amherst NY -NJ -CT Bus Shelters Culver Amherst has achieved an 85% occupancy rate in its bus shelter franchises in New York, New Jersey and Connecticut. This success is largely due to the firm's strong relationships with companies such as Chase Manhattan Bank, Disney, Avon Products, Snapple, Orion Pictures, USPS, Bell Atlantic, Kinko's, Continental Airlines, Armani, Versace, Nissan, Honda, Valvoline and others. Culver Amherst New York City - Walls & Billboards The firm has secured over 50 leases for outdoor advertising sites and achieved a 75% occupancy rate. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 7 Clients & Cities Served by Culver Amherst 1. List of Municipalities served by Culver Amherst 2. Franchise History & Compensation By Market 3. List of Advertising Clients Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 MUNICIPAL AGREEMENTS Culver Amherst currently operates transit shelter advertising franchises in the following municipalities: California: Newport Beach Laguna Hills Laguna Beach Tustin Sunset Beach Santa Ana Foothill Ranch Note: The Company operates bus shelters in these cities under agreements with the County of Orange. Connecticut: Bridgeport Hartford Norwalk Stamford New Jersey: Bloomfield Elmwood Park Verona New York: Albertson Baldwin Bethpage Carle Place East Meadow Elmont Flower Hill Franklin Square Freeport Garden City Glen Cove Hempstead Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 Waterbury Naugatuck Valley New Britain West Orange Union Fairlawn Lyndhurst Cedar Grove Hempstead Village New Cassel Island Park New Hyde Park Jericho North Merrick Lake Success N. Valley Stream Levittown Oceanside Lido Beach Plainview Lynbrook Port Washington Manhasset Seaford Massapequa Uniondale Merrick Valley Stream Mineola Westbury Munsey Park i� I H- 11 C� FRANCHISE HISTORY & COMPENSATION The following is an overview of Culver Amherst's current bus shelter operations, by market. Figures in parentheses represent the year the franchise commenced: California: Newport Beach Laguna Hills (1996) Laguna Beach Tustin Sunset Beach Santa Ana Foothill Ranch Note: The Company operates bus shelters in these cities under agreements with the County of Orange. Compensation: Payments are based on flat fees per shelter. Connecticut: Bridgeport (1996) Waterbury (1981) Hartford (1983) Naugatuck Valley (1983) Norwalk (1981)) New Britain (1993) Stamford (1980) Compensation: Payments are based on a percentage of revenue only. New Jersey: Bloomfield (1997) West Orange (1998) Union (1998) Elmwood Park (1997) Fairlawn (1997) Lyndhurst (1998) Verona (1997) Cedar Grove (1998) Compensation: Payments are based on a percentage of revenue only. New Fork: (1997) Albertson Baldwin Bethpage Carle Place East Meadow Elmont Flower Hill Franklin Square Freeport Garden City Glen Cove Hempstead Hempstead Village Island Park Jericho Lake Success Levittown Lido Beach Lynbrook Manhasset Massapequa Merrick Mineola Munsey Park New Cassel New Hyde Park North Merrick N. Valley Stream Oceanside Plainview Port Washington Seaford Uniondale Valley Stream Westbury Compensation: Guaranteed Annual Payment vs. Percentage of Revenue. 1997: Exceeded guaranteed payment by 560% 1998: Exceeded guaranteed payment by 757% Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 n r Partial Last of Advertisers (March 1999) Public Service Entertainment Media Project Safe Baby Universal Pictures GoTo.com March of Dimes Disney Pictures One On One Sports -AM 620 Hoops For Lymphoma Dreamworks Pictures Mining Company New York City Dept. of Health MGM Pictures Fortune Magazine Cystic Fibrosis Foundation Universal Home Video Village Voice 1-800-TIPS Disney Home Video New York Newsday Pax TV Chancellor Radio-103.5 WKTU Retail UPN TV Cox Broadcasting-102.3 WBAB Sephora Parfume Ringling Bros Circus News 12-NY The Wiz Target Stores Broadway Plays Travel Just For Feet Modell's Rent More To Love Continental Airlines Travelex Kinkos Cats TWA Dial -A -Mattress Miss Saigon Grupo Taca ® Edwards Food Stores A Beautiful Thing Allegro Resorts ® Scarlet Pimpernel Hunter Mountain Food Service Lowestfare.com Ruth's Chris Automotive McDonald's Nissan Telecommunications Wendy's Mercedes Benz AT&T Nathan's Honda Bell Atlantic/Nynex Dunkin Donuts Valvoline Oil Centers Motorola Checkers Volkswagen Sprint PCS Domino's Pizza Cellular Pius Healthcare Consumer Products Oxford Health Plans Finance & Insurance Krups Community Health Network Chase Manhattan Bank Sony Playstation Connecticare H&R Block Apple Computers Yale Preferred One NY Life IBM RK Roofing Genesis Wellcare PNC Bank Vision Securities Arizona Ice Tea Continuum Healthcare/Beth Israel Allstate Insurance Altoids Nassau County Med Center Coldwell Banker I Snapple Ice Tea Physicians Health Services ReMax Realty Solgar Vitamins Prudential Realty Fashion & Apparel Consumer Services Giorgio Armani Steve Madden Versace Visa Bebe Geoffrey Beene The Sak US Postal Service Guess? Globe Shoes Bugle Boy 1 NY Lottery Polo/Ralph Lauren Spiegel Rampage Bum Equipment Levi's Bisou Bisou Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 I Installation Plan Permit Applications Based on the current bus shelter contract, Culver Amherst would submit permit requests during the 30 day notice given to Eller Media. Culver Amherst would be prepared to install the first 50 shelters beginning May 5, 1999. Culver Amherst would work with the City during the first 60 days of the program to ensure all permit requests were complete. Shelter Installations Based on the current vendor's contract with the City, Culver Amherst is prepared to commence with shelter installations immediately upon the approval of pen -nits by the City and the removal of Eller's shelters. We currently have fifty (50) shelters in our warehouse ready to be installed in Huntington Beach. Culver Amherst is prepared to install bus shelters at the rate of 50 units per month until the City's desired quantity has been installed. To insure maximum safety and efficiency in regard to new shelter installations, Culver Amherst would recommend and propose to the City that Culver Amherst removes and disposes of the existing, obsolete shelter inventory. Bench Installations 1 Based on the current vendor's contract with the City, Culver Amherst is prepared to commence with bench installations immediately upon the approval of permits by the City and the removal of Coast's benches. Culver Amherst is prepared to install bus benches at the rate of 100 units per month until the City's desired quantity has been installed. To insure maximum safety and efficiency in regard to new bench installations, Culver Amherst would recommend and propose to the City that Culver Amherst removes and disposes of the existing, obsolete bench inventory. Available Inventory 1 Culver Amherst currently has 50 bus shelters in inventory available for installation in Huntington Beach. We will maintain this minimum level of inventory in anticipation of the upcoming needs in Huntington Beach, and will commit to manufacturing adequate quantities of shelters and benches once an agreement is executed with the City. The Company also maintains a stock of various bus benches and is prepared to order appropriate quantities of benches with one or more manufacturers in order to satisfy the requirements of the agreement. Commencement of Installations Installation of shelters and benches will begin on the first day that free and clear access is provided to Culver Amherst by the City. 1 Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP 1 March 5, 1999 �I H D E H rl Installation flan, p.2 Availability of Shelter Service Culver Amherst intends to provide uninterrupted bus shelter service to the City and its transit passengers, and will make every effort to ensure a smooth transition from the current vendor to the new program. To ensure a seamless approach Culver Amherst proposes to handle the removal of the current shelter and bench inventory. We will either scrap the old units or deliver them to the current vendors warehouse. Culver Amherst will install new shelters as rapidly and efficiently as possible while ensuring that high levels of safety and quality are maintained throughout the process. When Culver Amherst removes an existing shelter, the replacement shelter will be installed within 24 hours. Electrical Plan Shelters will be illuminated from dusk until dawn. Culver Amherst will apply for and obtain, at its own cost, any necessary electrical service permits from the electrical provider. We will illuminate all shelters in a timely manner as will be agreed to in the contract. Payment of Initial Annual Fee Pursuant to Paragraph 15 of the Franchise Agreement, Culver Amherst will pay the first years' annual fee when free and clear access to shelters and benches is established. As an example, if the City provides Eller Media with a 30-day notice of termination on April 5`h, and free and clear access to shelters is established for Culver Amherst on May 5`h, then Culver Amherst will pay the first year's fee to the City on May 5". The amount of the payment will be determined by the agreed upon quantity of shelters in the final contract. The same timing of payment to the City applies for the benches and is dependant on the date that the City provides free and clear access to the bench inventory. Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 C I Subcontractors Manufacturing Culver Amherst will employ the services of Tolar Manufacturing for a large proportion of its shelter supply. This will be supplemented by the Company's own manufacturing operation in Santa Ana. All units supplied to the City will meet required specifications and standards in regard to materials, workmanship, durability, finish, electrical function and general appearance. Tolar Manufacturing produces bus shelters, benches, kiosks and other street furniture. Based in Placentia, Tolar Mfg. has been involved in the production of bus shelters for over ten years. Bus Shelter & Bench Installations Culver Amherst will complete most of the installation work with its own direct employees. When additional assistance is required due to high volume, the firm will employ the services of Shelter Installation & Maintenance, Inc. of Orange County Electrical Work Electrical work will be completed by Shelter Installation & Maintenance, Inc. The firm is a fully - licensed electrical contractor specializing in the bus shelter business. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 3' "!r 0 k k k 1 Compensation to the City of Huntington Beach Culver Amherst's compensation to the City of Huntington Beach is comprised of the following components: l . Standard compensation proposal: 2. Economic Development Centers proposal: 3. Public Service Message Allotment Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP ' March 5, 1999 F, �J 1 F, Compensation. Culver Amherst's compensation plan is on a per month basis for each advertising shelter plus a non -advertising bench, an advertising shelter only, or an advertising bench only. Contract Year Guaranteed Minimum Monthly Payment (Shelter + Non Ad Bench) Guaranteed Minimum Monthly Payment (Shelter Only) Guaranteed Minimum Monthly Payment (Ad Bench Only) OR, Percentage Of Gross Advertising Revenue Year 1 $200 $200 $25 25% Year 2 $250 $250 $25 25% Year 3 $250 $250 $25 25% Year 4 $250 $250 $25 27% Year 5 $325 $325 $25 27% Year 6 $325 $325 $25 27% Year 7 $325 $325 $25 27% Year 8 $350 $350 $40 30% Year 9 $350 $350 $40 30% Year 10 $350 $350 $40 30% Potential Extension Year 11 $350 $350 $50 30% Year 12 $350 $350 $50 30% Year 13 $350 $350 $50 30% Year 14 $350 $350 $50 30% Year 15 $350 $350 $50 30% Non -advertising Amenities. The City may request the expansion of the proposed program to include additional non -advertising bus shelters and/or non -advertising bus benches. The "cost" of installation and maintenance of additional non -advertising shelters and benches is outlined below. These costs represent a reduction in the Guaranteed Minimum Payment. Maintenance and repair is included in this cost. $4,500 for addition of a single non -advertising shelter $ 500 for addition of a single non -advertising bench $4,500 for addition of a group of 1-10 non -advertising shelters $ 450 for addition of a group of 1-10 non -advertising benches $4,250 for addition of a group of 11-20 non -advertising shelters $ 425 for addition of a group of 11-20 non -advertising benches $4,150 for addition of a group of 21-30 non -advertising shelters $ 415 for addition of a group of 21-30 non -advertising benches 1 $4,000 for addition of a group of 31-40 non -advertising shelters $ 400 for addition of a group of 31-40 non -advertising benches $4,000 for addition of a group of 41-50 non -advertising shelters I 1 $ 400 for addition of a group of 41-50 non -advertising benches $4,000 for addition of a group of 51-60 non -advertising shelters $ 400 for addition of a group of 51-60 non -advertising benches $4,000 for addition of a group of 61-75 non -advertising shelters $ 400 for addition of a group of 61-75 non -advertising benches $4,000 for addition of a group of 76-100 non -advertising shelters $ 400 for addition of a group of 76-100 non -advertising benches 14. Bidder Information Oltm� rSignature �:4 Printed Name Christopher kulver Firm Name Culver Amherst, LLC Address 141 5`h Avenue, 11 `h floor City/State New York, NY 10010 ' Phone 212-539-6104 FAX 212-505-6899 Date March 5, 1999 E-mail Address cjc@culvermedia.com Website URL www.culveramherst.com 1 1 1 H 7 J IJ "ECONOMIC DEVELOPMENT CENTERS" In addition to its compensation package to the City of Huntington Beach, Culver Amherst has developed a component, which would provide the City with an opportunity to generate additional income. Culver Amherst would offer to build and maintain unique street furniture with advertising to generate revenue for specific locations. These locations would be branded "Economic Development Centers" (EDC's) and benefit from the advertising generated from this designated signage. Advertising revenue generated from any street furniture operated by Culver Amherst at the EDC's will be shared 50-50% with the City. The advertising signs could be located at the location benefiting from the revenue or the advertising may be located in areas that are not EDC's . Economic Development Centers could be a valuable tool in funding needed programs like: Youth sports Boys and Girls Club Senior programs Handicap services Other proposed Economic Development Centers could include: Downtown Municipal Parking Structure Boardwalk and Pier Downtown commercial area Other locations to be designated by the City EXAMPLE OF AN ECONOMIC DEVELOPMENT CENTER At recent council meetings we have heard many discussions regarding increasing fees at the City parking structure. If we designated the Parking Structure as an EDC we could potentially generate over $33,000 annually from this program. On the following pages we have given examples of unique signage that may be used at EDC's. We propose to work with the City to design signage for each location. Street furniture which Culver Amherst would propose for the parking structure: Informational Kiosks Wall signs (SEE PHOTOS IN SECTION 6) Bus Benches Projected income from Parking Structure: 1 Average Ad rate per panel per month x 10 ad panels projected Revenue per month: Revenue per year: 50% to City of Huntington Beach: $ 550 $ 5,500 $66,000 $33,000 If the City were to designate 10 Economic Development Centers, the City could generate approximately $330,000 in additional annual revenue. Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 Public Service Messages r Culver Amherst will make available to the City fifteen advertising panels in Huntington Beach for three (3) four -week segments each year for ten (10) years. The Company will, in cooperation with the City, design, print, install and remove these posters three times per year at no charge to the City. ' Culver Amherst will also make available to the City 100 advertising panels (within and outside of Hungtington Beach) per year for ten (10) years. The Company will, in cooperation with the City, design, print, install and remove these posters three times per year at no charge to the City. These additional 100 panels will be made available to the City at the discretion of Culver Amherst. u fl 1 I 11 Culver Amherst, LLC Huntington Beach Bus Shelters & Benches RFP March 5, 1999 Compensation Summary for City of Huntington Beach Culver Amherst's total 10 year compensation offer is comprised of the following items: 1. Standard shelter compensation proposal Guaranteed Minimum Payment based on 150 shelters: $ 5,355,000 Guaranteed Maximum Payment based on 300 shelters: $ 10,710,000 City will determine final number of shelters 2. Standard bench compensation proposal Guaranteed Minimum Payment (minimum of 250): $ 885,000 Guaranteed Maximum Payment (maximum of 500): $ 1,350,000 City will determine final number of benches 3. Economic Development Centers proposal Based on the development of 10 EDC's: $ 3,300,000 4. Public Service allotment Based on 15 panels offered in -kind to the City for three 4-week periods per year (at $750 per panel): $ 337,500 100 additional public service panels per year will be provided to City at Culver Amherst's discretion: $ 750,000 5. Public Service Poster Printing Based on estimate of providing 200 posters (in -kind) per year to the City: $ 300,000 Minimum potential value of 10-year compensation proposal: $10,927,500 Maximum potential value of 10-year compensation proposal: $16,747,500 Culver Amherst, LLC Huntington Beach Bus Shelter & Benches RFP March 5, 1999 INITIATING DEPARTMENT: City Administration SUBJECT: AWARD OF A FRANCHISE AGREEMENT FOR TRANSIT ADVERTISING SERVICES RELATED TO THE PLACEMENT OF BUS SHELTERS / BUS BENCHS WITHIN THE PUBLIC RIGHT OF WAY COUNCIL MEETING DATE: Aril 19, 1999 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Attached Subleases, Third Party Agreements, etc. (Approved as to form by City Attome Not Applicable Certificates of Insurance (Approved by the City Attomey) Not Attached (Explain) Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Attached (Explain Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR 1 MISSING AT1 . C � � t- ii _ REVIEWED RETURNED FORWARDED' Administrative Staff Assistant City Administrator Initial City Administrator (Initial) ( ) ( ) City Clerk ( ) EXPLANATION FOR c- OF ITEM: RCA Author: Richard Barnard F014 mac°CITY ®F HUB TINGT N BEACH INTER -DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Honorable Mayor Peter Green and City Councilmember Garofalo FROM: Gail Dutton, City Attorney DATE: April 19,1999 SUBJECT: Bus Shelter/Bench Contract - Conflict of Interest RLS 99-252 INDEX: FPPC; Conflict of Interest BACKGROUND We have received a letter from an attorney that represents Culver Amherst LLC, one of the potential bus bench/shelter franchisees (copy attached). The letter alleges that Mayor Green and Councilmember Garofalo have conflicts of interest that disqualify them from participating in the decision regarding the new franchise. Essentially, the letter alleges that another potential franchisee, Eller Media Company, gave $10,000 in free advertising to the Huntington Beach Community Clinic. The letter alleges that Mrs. Green is the President of the clinic, and that the gift from Eller to the clinic was designed to influence Mayor Green's vote. The letter further alleges that CouncilmemberGarofalo's business is selling print advertising, and that Eller will seek less local advertising than Culver, and will thus have less of an impact on CouncilmemberGarofalo's business. Therefore, according to the letter, Garofalo is more likely to support Eller's bid than Culver's. Representatives of the Clinic have confirmed that Eller has donated some advertising space to the Clinic, and that the Clinic is a non-profit organization. Mrs. Green is an unpaid volunteer member of the Clinic's board of directors. Our understanding is that the Local News is actually owned by Coatings Resources, Inc., and that Councilmember Garofalo is an employee of Coatings Resources. ISSUE Whether Mayor Green or Councilmember Garofalo have a financial conflict of interest, as defined by the Fair Political Practices Act, which prohibits them from making, participating in making, or in any way attempting to use their official position to influence the City Council's decision on the selection of the bus bench/shelter franchisee. gW99memos\busbench rls 99-252 a ANSWER It appears that no conflict exists, and that Mayor Green and Councilmember Garofalo may participate in the decision. ANALYSIS Defense to enforcement action. As a preliminary matter, please note that pursuant to Government Code Section 83114, good faith reliance upon a formal opinion issued by the Fair Political Practices Commission is a defense to an enforcement action brought under the Act. No such defense is provided by reliance upon an opinion by the City Attorney's office. After reviewing this memorandum, you may wish to contact the FPPC directly to receive their opinion. It is important that you understand that the City Attorney has no statutory duty or authority under the Political Reform Act to provide Political Reform Act advice to any Council member or member of an advisory body. As stated above, you may not rely upon any assistance provided by this office with immunity from FPPC enforcement or prosecution. Further, you enjoy no privilege of attorney/client confidentiality in reviewing these matters with the City Attorney. In the event that facts come to our attention which lead us to believe that you should disqualify yourself from participation in a decision, we will publicly advise the City Council of our belief that you should disqualify yourself. If, after receiving the assistance provided by this memo, you wish to participate in the decision making process with immunity from prosecution or enforcement, this office will assist you in making direct contact with the FPPC for informal or formal advice upon which you can rely. Mayor Green's potential conflict. Mayor Green's potential conflict is through the involvement of Mrs. Green with the Clinic. Because the Clinic is a non-profit organization, it is not a "business entity" as defined by the Political Reform Act. (See Cal. Gov't Code Section 82005.) Further, as an unpaid volunteer member of the board of directors, the Clinic is not a source of income to Mrs. Green. Therefore, we conclude that the facts presented in the letter do not demonstrate that Mayor Green has a conflict of interest that prevents him from participating in the decision regarding the bus bench/shelter franchise. Councilmember Garofalo's potential conflict. Councilmember Garofalo's potential conflict is through the fact that his employer, Coatings Resources, owns a local newspaper (the "Local News") that also sells advertising. Culver has two arguments: that the bus bench/shelter franchisee will be in competition for advertising dollars with the Local News; and that Councilmember Garofalo is more inclined to vote for the selection of Eller, because Culver will pursue local advertisers (in direct competition with the Local News) more vigorously than Eller. There are two problems with Culver's analysis. The first problem is that it is not reasonably foreseeable that the Council's decision on awarding a bus bench/shelter franchise will have any effect on Councilmember Garofalo's employer, Coatings Resources. We have not been 2 g\4\99memos%usbench rls 99-252 presented with any evidence that print ad revenue is, in any way, influenced by competition from bus bench/shelter ads. Second, even if we assume that competition from bus bench/shelter ads would have an effect on Coatings Resources' print ad revenue, there is no evidence that the effect would be a material effect on Coatings Resources as defined by the Regulations. There are different standards of materiality for indirectly involved business entities. We assume for purposes of this analysis that Coatings Resources is a business covered by Section 18705.1(b)(7) of the Regulations.' As such, the decision at issue is material if it will result in: a. an increase or decrease in the gross revenues for a fiscal year of $10,000 or more; or b. the business entity incurring or avoiding additional expenses or reducing or eliminating existing expenses for a fiscal year in the amount of $2,500 or more; or c. an increase or decrease in the value of assets or liabilities of $10,000 or more. From the facts as given, it appears unlikely that this decision will have any financial effect on Coatings Resources, let alone a material financial effect as defined by the Regulations; therefore, no disqualification is necessary. Regardless of who is awarded the new franchise agreement, it is unlikely that Coatings Resources will realize an increase or decrease in gross revenues for a fiscal year of $10,000 or more; or incur or avoid additional expenses or reduce or eliminate existing expenses for a fiscal year in the amount of $2,500 or more; or experience an increase or decrease in the value of its assets or liabilities of $10,000 or more. GAIL HUTTON City Attorney c: Ray Silver, City Administrator Melanie Fallon, Assistant City Administrator 1 Most of Section 18705.1 involves standards geared to large companies listed on various stock exchanges like the NYSE or NASDAQ. 3 gW99memos\busbench r1s 99-252 Apr-12-99 02:24P P.UZ Lemieux ONeill o proteauor+ol corporanon 200 North Westloke Blvd, • Suite 100 • westloke Vliiage Callforrno 91362-3755 -Tel: 605.495.4770 • Fox: 805.495.2787 April 12, 1999 Ka Facsimile & U.& Mail Gail Hutton, Esq. Office of the City Attorney 2000 Main Street Huntington Beach, California 92648 Re: Bus Shelters/Bus Benches RFP # 990305-2, Conflicts of Interest Dear Ms. Hutton: We represent Culver Amherst LLC ("Culver") in connection with the above -referenced RFP. I am writing to bring to your attention two matters relating to possible conflicts of interest on the part of Mayor Green, Mayor Pro Tem Garofalo, and Mr. Don Watson, that we recently have become aware of which we believe merit further scrutiny by the City Attorney. Background There has been a Staff recommendation (in the form of a draft RCA) that Culver's bid is the best for the City and that the contract should be awarded to Culver. Messrs. Green and Garofalo, however, have indicated they disagree with Staff and instead favor the bid from Eller Media Company ("Eller") — even though Eller's bid would provide significantly less revenue for the City, and even though Eller's performance of its current contract has been unsatisfactory for the City in significant respects. The draft RCA in favor of Culver was presented at the EDC meeting on March 24, 1999. According to the minutes of that meeting, however, Mr. Garofalo's views `were in direct opposition to Staffs recommendation." According to the minutes, Mr. Garofalo "shared the evaluation process that he would have used to find in favor of the Eller Media proposal." The minutes also reflect that when photographs were passed around showing the poor state of the current Eller shelters, Mr. Garofalo asked whether the City had ever informed Eller of the shelters' shoddy condition; in response, Staff and Council Member Detloff reportedly pointed out that it was Eller's contractual responsibility to monitor and maintain the shelters, not the City's. We understand the Staff received unfavorable comments about Eller's shelters from the FA0ATA=LV ..aWUWMRCH%HMOCnY.ATT opp-1 7-1 QQ4 1 S [ Zn cr7 , P A7 Apr-12-99 UZ:Z4P N_U� Gail Hutton, Esq. Office of the City Attorney April 12, 1999 Page 2 staffs at the cities of Westminister, Fountain Valley, and Garden Grove. In addition, today's Miami Herald reports that a felony indictment is expected against Eller resulting from the electrocution death of a 12 year old boy due to unsafe wiring at an Eller shelter. The minutes of the meeting also reflect that Mayor Green indicated he was not prepared to respond to the Staffs unanimous recommendation. However, Mayor Green proceeded unexpectedly to announce he had retained Mr. Watson as an unpaid, outside "consultant" to evaluate the bids. At the meeting, Mayor Green referred to a 19-page "preliminary critique" that Mr. Watson had prepared, which apparently did not agree with the Staffs recommendation in favor of Culver; and at the end of the meeting, the Staff was directed to meet with Mr. Watson to reconsider their recommendation. Mr. Green's Conflict of Interest We have learned that on approximately March 25, 1999 —just one day after the March 24 EDC meeting — Eller provided to the Huntington Beach Community Clinic (the "Clinic") ten bus shelter advertising posters, printed and displayed free of charge. Those advertisements normally would have cost an advertiser at least $10,000.00 for only one month's display, exclusive of printing costs (and, depending on the duration of display, could be worth considerably more). We also have learned that Mayor Green's wife, Cathy Green, is the President of the Clinic, and Mr. Watson is Chairman of the Clinic. At the very least, we believe these events raisgrt eappearance of impropriety. 1' a timing of these events alone raises the suspicion that EUer's largesse was designed to influence Mayor Green and Mr. Watson. This matter clearly merits further investigation, and warrants the recusal of Mayor Green (and his "consultant," Mr. Watson) from any further involvement in the RFP process. Mr. Garofalo's Conflict of Interest We also have learned that Mr. Garofalo appears to have a conflict of interest in connection with this UP. The bus shelter franchisee who is the successful bidder under the RFP will be in competition for advertising dollars with all local media, including The Local News. According to the masthead that appears in The Local News, Mr. Garofalo himself is the publisher of the paper, and David P. Garofalo & Associates, Inc. is the owner. 1'%DATAVLtVCAWbWrUbC'INI?fr= Arr Apr-12-99 02:25P Gail Hutton, Esq. Office of the City Attorney April 12, 1999 Page 3 Culver has made clear its intention to vigorously pursue local advertisers for the bus shelters. Eller, on the other hand, traditionally has underutilized local advertisers during its tenure. It would appear, therefore, that Mr. Garofalo's financial interests could be benefitted if the contract is awarded to Eller rather than Culver. Under the circumstances, we believe Mr. Garofalo should be recused and have no further involvement in the RFP process. The statutory provisions that warrant consideration are Sections 87100 and 1090 of the California Government Code. Section 87100 provides that "[n]o public official at any level of state or local government shall make, participate in making or in any way attempt to use his official position to influence a governmcntal decision in which he knows or has reason to know he has a financial interest." Section 1090 provides that "[m]embers of the Legislature, state, county, district, judicial district, and city officers, or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members." Based on the facts as we understand them, the questions to be considered are (A) whether Mr. Garofalo has a financial interest in the decision because the bus shelter franchisee will be in competition with Mr. Garofalo's The Local News for advertising dollars; and (B) whether Mr. Garofalo has a financial interest in the franchise contract in light of the different approaches of Eller and Culver in pursuing local advertisers. I will call you shortly to follow-up on these matters. Very truly yours, LEMIEUX & O'NE1LL NO Steven P. O'Neill SON -km F.TA,r,kKULvgAVtVNTOSL"Kr CRYATr APR-12-1999 15:35 96% P.04 HP,-_yL-may U4;x � Gail Hutton, Esq. Office of the City Attorney April 12, 1999 Page 4 cc: (Via facsimile &.U.S Mail): . Council Members, Julien, Harman, Green, Detloff, Bauer, Sullivan, and Garofalo City of Huntington Beach Staff P:%DATAvcvt.vx R%mvwm a,.wwtncmA,rr ODD_1'7_M1 000 9C•iC Q�� P"6i5 r Ho ' CITY OFHUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Honorable Mayor Peter Green and City Councilmember Garofalo FROM: Gail Hutton, City Attorney RECEIVED FROM C't &+ poua 1 AND MADE A PART OF THE ECORD AT THE —1 �^ COUNCIL MEETING OF N tlq DATE: April 19,1999 OFFICE OF THE CITY CLERK CONNIE BROCKWAY, CITY CLERK SUBJECT: Bus Shelter/Bench Contract - Conflict of Interest RLS 99-252 INDEX: FPPC; Conflict of Interest BACKGROUND We have received a letter from an attorney that represents Culver Amherst LLC, one of the potential bus bench/shelter franchisees (copy attached). The letter alleges that Mayor Green and Councilmember Garofalo have conflicts of interest that disqualify them from participating in the decision regarding the new franchise. Essentially, the letter alleges that another potential franchisee, Eller Media Company, gave $10,000 in free advertising to the Huntington Beach Community Clinic. The letter alleges that Mrs. Green is the President of the clinic, and that the gift from Eller to the clinic was designed to influence Mayor Green's vote. The letter further alleges that Councilmember Garofalo's business is selling print advertising, and that Eller will seek less local advertising than Culver, and will thus have less of an impact on CouncilmemberGarofalo's business. Therefore, according to the letter, Garofalo is more likely to support Eller's bid than Culver's. Representatives of the Clinic have confirmed that Eller has donated some advertising space to the Clinic, and that the Clinic is a non-profit organization. Mrs. Green is an unpaid volunteer member of the Clinic's board of directors. Our understanding is that the Local News is actually owned by Coatings Resources, Inc., and that Councilmember Garofalo is an employee of Coatings Resources. ISSUE Whether Mayor Green or Councilmember Garofalo have a financial conflict of interest, as defined by the Fair Political Practices Act, which prohibits them from making, participating in making, or in any way attempting to use their official position to influence the City Council's decision on the selection of the bus bench/shelter franchisee. g\4U9memos%usbench rls 99-252 ANSWER It appears that no conflict exists, and that Mayor Green and Councilmember Garofalo may participate in the decision. ANALYSIS Defense to enforcement action. As a preliminary matter, please note that pursuant to Government Code Section 83114, good faith reliance upon a formal opinion issued by the Fair Political Practices Commission is a defense to an enforcement action brought under the Act. No such defense is provided by reliance upon an opinion by the City Attorney's office. After reviewing this memorandum, you may wish to contact the FPPC directly to receive their opinion. It is important that you understand that the City Attorney has no statutory duty or authority under the Political Reform Act to provide Political Reform Act advice to any Council member or member of an advisory body. As stated above, you may not rely upon any assistance provided by this office with immunity from FPPC enforcement or prosecution. Further, you enjoy no privilege of attorney/client confidentiality in reviewing these matters with the City Attorney. In the event that facts come to our attention which lead us to believe that you should disqualify yourself from participation in a decision, we will publicly advise the City Council of our belief that you should disqualify yourself. If, after receiving the assistance provided by this memo, you wish to participate in the decision making process with immunity from prosecution or enforcement, this office will assist you in making direct contact with the FPPC for informal or formal advice upon which you can rely. Mayor Green's potential conflict. Mayor Green's potential conflict is through the involvement of Mrs. Green with the Clinic. Because the Clinic is a non-profit organization, it is not a "business entity" as defined by the Political Reform Act. (See Cal. Gov't Code Section 82005.) Further, as an unpaid volunteer member of the board of directors, the Clinic is not a source of income to Mrs. Green. Therefore, we conclude that the facts presented in the letter do not demonstrate that Mayor Green has a conflict of interest that prevents him from participating in the decision regarding the bus bench/shelter franchise. Councilmember Garofalo's potential conflict. Councilmember Garofalo's potential conflict is through the fact that his employer, Coatings Resources, owns a local newspaper (the "Local News") that also sells advertising. Culver has two arguments: that the bus bench/shelter franchisee will be in competition for advertising dollars with the Local News; and that Councilmember Garofalo is more inclined to vote for the selection of Eller, because Culver will pursue local advertisers (in direct competition with the Local News) more vigorously than Eller. There are two problems with Culver's analysis. The first problem is that it is not reasonably foreseeable that the Council's decision on awarding a bus bench/shelter franchise will have any effect on Councilmember Garofalo's employer, Coatings Resources. We have not been 2 g\4\99memos\busbench rls 99-252 presented with any evidence that print ad revenue is, in any way, influenced by competition from bus bench/shelter ads. Second, even if we assume that competition from bus bench/shelter ads would have an effect on Coatings Resources' print ad revenue, there is no evidence that the effect would be a material effect on Coatings Resources as defined by the Regulations. There are different standards of materiality for indirectly involved business entities. We assume for purposes of this analysis that Coatings Resources is a business covered by Section 18705.1(b)(7) of the Regulations.' As such, the decision at issue is material if it will result in: a. an increase or decrease in the gross revenues for a fiscal year of $10,000 or more; or b. the business entity incurring or avoiding additional expenses or reducing or eliminating existing expenses for a fiscal year in the amount of $2,500 or more; or c. an increase or decrease in the value of assets or liabilities of $10,000 or more. From the facts as given, it appears unlikely that this decision will have any financial effect on Coatings Resources, let alone a material financial effect as defined by the Regulations; therefore, no disqualification is necessary. Regardless of who is awarded the new franchise agreement, it is unlikely that Coatings Resources will realize an increase or decrease in gross revenues for a fiscal year of $10,000 or more; or incur or avoid additional expenses or reduce or eliminate existing expenses for a fiscal year in the amount of $2,500 or more; or experience an increase or decrease in the value of its assets or liabilities of $10,000 or more. GAIL HUTTON City Attorney c: Ray Silver, City Administrator Melanie Fallon, Assistant City Administrator 1 Most of Section 18705.1 involves standards geared to large companies listed on various stock exchanges like the NYSE or NASDAQ. 3 g14199memos\busbench rls 99-252 Apr-1Z-99 OZ:Z4P P_UL Lemieux ®Neill o prof000nol corporotlon 200 North Westloke Blvd. • Suite 100 - Werlake Milage Californlo 91302-3755 • Tel: 805.495.4770 • Fox: 805.495.2787 April 12, 1999 Ka Facsimile & U.S. Mail Gail Hutton, Esq. Office of the City Attorney 2000 Main Street Huntington Beach, California 92648 Re: Bus Shelters/Bus Benches PFP # 990305-2, Conflicts of Interest Dear Ms. Hutton: We represent Culver Amherst LLC ("Culver") in connection with the above -referenced Rl~P. I am writing to bring to your attention two matters relating to possible conflicts of interest on the part of Mayor Green, Mayor Pro Tern Garofalo, and Mr. Don Watson, that we recently have become aware of which we believe merit further scrutiny by the City Attorney. Background There has been a Staff recommendation (in the form of a draft RCA) that Culver's bid is the best for the City and that the contract should be awarded to Culver. Messrs. Green and Garofalo, however, have indicated they disagree with Staff and instead favor the bid from Eller Media Company ("Eller") — even though Eller's bid would provide significantly less revenue for the City, and even though Eller's performance of its current contract has been unsatisfactory for the City in significant respects The draft RCA in favor of Culver was presented at the EDC meeting on March 24, 1999. According to the minutes of that meeting, however, Mr. Garofalo's views "were in direct opposition to Staffs recommendation." According to the minutes, Mr. Garofalo "shared the evaluation process that he would have used to find in favor of the Eller Media proposal." The minutes also reflect that when photographs were passed around showing the poor state of the current Eller shelters, Mr. Garofalo asked whether the City had ever informed Eller of the shelters' shoddy condition; in response, Staff and Council Member Detloff reportedly pointed out that it was Eller's contractual responsibility to monitor and maintain the shelters, not the City's. We understand the Staff received unfavorable comments about Eller's shelters from the F.%DATA%CVL VFRWUWMRCH%HNTOCM.ATT APR-12-1999 15:34 '37% P.02 s-Apr-lc-�7 vc=c�+r r—.vD Gail Hutton, Esq. Office of the City Attorney April 12, 1999 Page 2 staffs at the cities of Westminister, Fountain Valley, and Garden Grove. In addition, today's Miami Herald reports that a felony indictment is expected against Eller resulting from the electrocution death of a 12 year old boy due to unsafe wiring at an Eller shelter. The minutes of the meeting also reflect that Mayor Green indicated he was not prepared to respond to the Staff s unanimous recommendation, However, Mayor Green proceeded unexpectedly to announce he had retained Mr. Watson as an unpaid, outside "consultant" to evaluate the bids. At the meeting, Mayor Green referred to a 19-page "preliminary critique" that Mr. Watson had prepared, which apparently did not agree with the Staffs recommendation in favor of Culver; and at the end of the meeting, the Staff was directed to meet with Mr. Watson to reconsider their recommendation. Mr. Green's Conflict of Interest We have learned that on approximately March 25, 1999 —just one day after the March 24 EDC meeting — Eller provided to the Huntington Beach Community Clinic (the "Clinic") ten bus shelter advertising posters, printed and displayed free of charge. Those advertisements normally would have cost an advertiser at least $10,000.00 for only one month's display, exclusive of printing costs (and, depending on the duration of display, could be worth considerably more). We also have learned that Mayor Green's wife, Cathy Green, is the President of the Clinic, and Mr. Watson is Chairman of the Clinic. At the very least, we believe these events raisg-t a appearance of improprie . Je timing of these events alone raises the suspicion that EUer's largesse was designed to influence Mayor Green and Mr. Watson. This matter clearly merits further investigation, and warrants the recusal of Mayor Green (and his "consultant," Mr. Watson) from any further involvement in the RFP process. Mr. Garofalo's Conflict of Interest We also have learned that lair. Garofalo appears to have a conflict of interest in connection with this UP. The bus shelter franchisee who is the successful bidder under the RFP will be in competition for advertising dollars with all local media, including The Local News. According to the masthead that appears in The Local News, Mr. Garofalo himself is the publisher of the paper, and David P. Garofalo & Associates, Inc. is the owner. P"GATAVR/LVEAW UKW bt7NiNrLXM ATT APP.-12-1999 15:34 97x P.03 ApY^-1L-�J-� UL:Z5P � P.04 Gail Hutton, Esq. Office of the City Attorney April 12, 1999 Page 3 Culver has made clear its intention to vigorously pursue local advertisers for the bus shelters. Eller, on the other hand, traditionally has underutilized local advertisers during its tenure. It would appear, therefore, that Mr. Garofalo's financial interests could be benefitted if the contract is awarded to Eller rather than Culver. Under the circumstances, we believe Mr. Garofalo should be recused and have no further involvement in the RFP process. The statutory provisions that warrant consideration are Sections 87100 and 1090 of the California Government Code. Section 87100 provides that "[n]o public official at any level of state or local government shall make, participate in making or in any way attempt to use his official position to influence a governmental decision in which he knows or has reason to know he has a financial interest." Section 1090 provides that "[m]embers of the Legislature, state, county, district, judicial district, and city officers, or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members." Based on the facts as we understand them, the questions to be considered are (A) whether Mr. Garofalo has a financial interest in the decision because the bus shelter franchisee will be in competition with Mr. Garofalo's The Local News for advertising dollars; and (B) whether Mr. Garofalo has a financial interest in the franchise contract in light of the different approaches of Eller and Culver in pursuing local advertisers. I will call you shortly to follow-up on these matters. Very truly yours, LEMIEUX & O'NEILL "" NO Steven P. O'Neill SON -km F.WATA%CUL VERVfVNT06C"KfQCRYATT APR-12-1999 15:35 96% P.04 Gail Hutton, Esq. Office of the City Attorney April 12, 1999 Page 4 cc: ' (via facsimile & U.S. Mail): Council Members, Julien, Harman, Green, Detloff, Bauer, Sullivan, and Garofalo City of Huntington Beach Staff P.WA?AYII.VER4iVKIGBC'HW M9CT�YJITC APR-12-1999 15:35 97i P.05