HomeMy WebLinkAboutCULVER AMHERST LLC - later named Signal Outdoor Advertising, LLC - 1998-12-21 (12)Qcv�ied o 76, ,Ci'iedt»rieh %ye�s��
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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
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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
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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.
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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
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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
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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.
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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.
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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.
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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.
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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.
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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
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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
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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
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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:
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(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.
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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
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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.
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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.
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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
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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.
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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
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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;
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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.
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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
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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
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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
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07149
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09296
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NTB
-
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HTB
07141
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12749
LIBCHR
547
D857HIC08 GOLDEN WEST
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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..
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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
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HTB
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-
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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
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HTB
10294
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86
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07880
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11TH ST
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HIS
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HARIND
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14TH ST
SE
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NATSUN2
574A1
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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 ..
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HUNTINGTON
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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
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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
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> > 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
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✓ 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
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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
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10)
Maintenance Schedule
11)
Installation Schedule
12)
Compensation
_-
13)
Non -Ad Amenities
14)
Bidder Information
15)
Summary
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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.
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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.
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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.
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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.
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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
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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:
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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
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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: .
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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 -
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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.
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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
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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.
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Steel .623'diameter de md.
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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
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WAYFINDING EXAM-P,LE 2'
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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
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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
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• 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
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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
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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
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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
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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
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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.
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Culver Amherst, LLC
Huntington Beach Bus Shelters & Benches RFP
1 March 5, 1999
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'-.0 3/4 Lei.4
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CARTAGE BOLTS 5
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(Toe ! e0TTo1a)
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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' "
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91
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8F ANGLE aC. A -A (IYP)
MAIL. A
ADVERTISING BENCH (A)
7' DAY BENCH
ADV' ,-RTI SIINIG B E N`C H.
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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
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TOTAL P.02
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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
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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
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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
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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
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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
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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
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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
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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
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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
$4,000 for addition of a group of 41-50 non -advertising shelters
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$ 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
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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
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"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.
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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