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C7L-Exercise Month-To-Month Extension Directory Structures In The Lincoln Road ACOMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The Mayor And The City Commission Of The City Of Miami Beach, Florida, Exercising A Month-To- Month Extension Of The Agreement Between The City And Clear Channel Adshel Inc., To Construct, Operate And Maintain Directory Structures In The Lincoln Road Area; Which Expires On April 17, 2013; With Said Extension Commencing On April 18, 2013, And Terminating, For Convenience And Without Cause, At Such Time As New Directory Structures Are Replaced And Installed. Ke Intended Outcome Su orted: Supporting Data (Surveys, Environmental Scan, etc.): N/A Item Summary/Recommendation: The City currently has an agreement with Clear Channel Adshel Inc., to construct, operate and maintain directory structures in the Lincoln Road Area, at ten (1 0) intersections along Lincoln Road, effective through April 17, 2013. Under the terms of the Agreement, the City receives a minimum of $22,000 per year or 30% of the total advertising net revenue from directory panels on Lincoln Road. Last year, the City received payment in the amount of $112,589. The highest annual revenue received was $149,683 in 2007. At the February 6, 2013 City Commission meeting, the Administration referred the subject matter to the Finance and Citywide Projects Committee (FCWPC) for discussion on whether or not the City would consider the installation of smaller fixed or digital advertising panels. At its February 20, 2013, the FCWPC recommended that the item be referred to the Historic Preservation Board to seek direction as to what type of directory structures are most appropriate for the Lincoln Road Corridor and after this direction is obtained, the FCWPC recommends that a Request for Proposals be prepared for their review. THE ADMINISTRATION RECOMMENDS APPROVING THE RESOLUTION Advisory Board Recommendation: Financial Information: Source of Funds: I I Amount I I 1 I I Financial Impact Summary: islative Trackin MIAMI BEACH 349 Account AGENDA ITEM --=C;...,...7.:........:;.,.J.._ DATE 'l-/2-/_j MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISS ON MEMORANDUM TO: Mayor Matti Herrera-Bower and Me FROM: Jimmy L. Morales, City Manager DATE: April17, 2013 SUBJECT: A RESOLUTION OF THE MAYOR A 0 THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, EXERCISING A MONTH-TO-MONTH EXTENSION OF THE AGREEMENT BETWEEN THE CITY AND CLEAR CHANNEL ADSHEL INC., TO CONSTRUCT, OPERATE AND MAINTAIN DIRECTORY STRUCTURES IN THE LINCOLN ROAD AREA; WHICH EXPIRES ON APRIL 17, 2013; WITH SAID EXTENSION COMMENCING ON APRIL 18, 2013, AND TERMINATING, FOR CONVENIENCE AND WITHOUT CAUSE, AT SUCH TIME AS NEW DIRECTORY STRUCTURES ARE REPLACED AND INSTALLED. ADMINISTRATION RECOMMENDATION Approve the Resolution. BACKGROUND The City currently has an agreement with Clear Channel Adshel Inc., to construct, operate and maintain directory structures in the Lincoln Road Area, at ten (1 0) intersections along Lincoln Road, effective through April17, 2013. The agreement was entered on April 18, 2001 with an initial five (5) year term. Subsequent to entering into contract with Clear Channel Adshellnc., the City realized that there was a need to have ten (1 0) additional street name signs and requested that Clear Channel Adshel Inc. install them. These additional street name signs help both pedestrian and vehicular traffic in identifying the street names and block address designation for that location. On August 14, 2001, it was determined and ordered by the Historic Preservation Board that one ( 1) additional directory sign would be placed at the intersection of James Avenue and Lincoln Road. On November 13, 2002, the City executed the First Amendment to the Agreement between the City of Miami Beach and Clear Channel Adshellnc., adding the additional street signs and additional two-sided directory structures. As part of this First Amendment, the term was extended by two (2) years, with a termination on April 17, 2008 and providing automatic renewals for up to five (5) additional one-year terms, which were already been exercised. Therefore, the current agreement terminates on April 17, 2013. 350 City Commission Memorandum -Adshel Lincoln Rd. Panels April17, 2013 Page 2 of 2 Under the terms of the Agreement, the City receives a minimum of $22,000 per year or 30% of the total advertising net revenue from directory panels on Lincoln Road. Last year, the City received payment in the amount of $112,589. The highest annual revenue received was $149,683 in 2007. At the February 6, 2013 City Commission meeting, the Administration referred the subject matter to the Finance and Citywide Projects Committee (FCWPC) for discussion on whether or not the City would consider the installation of smaller fixed or digital advertising panels. At its February 20, 2013, the FCWPC recommended that the item be referred back to the Historic Preservation Board to seek direction as to what type of directory structures are most appropriate for the Lincoln Road Corridor and after this direction is obtained, the FCWPC recommends that a Request for Proposals be prepared for their review. CONCLUSION The Administration recommends that the City Commission exercise a month-to-month extension of the Agreement between the City and Clear Channel Adshel Inc., to construct, operate and maintain directory structures in the Lincoln Road Area; which expires on April17, 2013; with said extension commencing on April 18, 2013, and terminating, for convenience and without cause, at such time as new directory structures are replaced and installed. JLM\JG s F:\WORK\$ALL\(1) EMPLOYEE FOLDERS\FIORELLA SARMIENTO\Adshel Lincoln Road Directory. memo.doc 351 u 352