District of Columbia Street Furniture Act of 2002
Bill 14-652

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A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

Chairman Linda W. Cropp, at the request of the Mayor, introduced the following bill which was referred to the Committee on Public Works and the Environment.

To authorize the District Division of Transportation within the Department of Public Works to enter into a franchise agreement for the design, fabrication, construction, installation, operation (where applicable), repair, and maintenance of stet furniture, including bus shelters, and to authorize the franchisee to place advertisements upon certain of the street furniture, including bus shelters.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this Act may be cited as the "District of Columbia Street Furniture Act of 2002".

Sec. 2. The Franchise Agreement.

(a) The District Division of Transportation in the Department of Public Works ("DDOT") is, authorized, based upon an evaluation of the proposals received following a request for proposals, to enter into a franchise agreement for the design, fabrication, construction, installation, operation (where applicable), repair and maintenance of street furniture on public space in the District of Columbia. The request for proposals shall be advertised in a newspaper of general circulation. The street furniture may include, but is not limited to, self-cleaning automatic public toilets, information kiosks, newspaper vending boxes, news stands, public benches, bicycle racks, and other products including, after October 4, 2003, bus shelters.

(b) The design, construction, fabrication, installation, operation (where applicable), repair, and maintenance of all street furniture will be performed by the franchisee at no cost to the District of Columbia in exchange for allowing the franchisee to place advertisements, supplied by the franchisee, on certain types of street furniture with the approval of DDOT.

(c) The franchise agreement shall, for its term, be the exclusive agreement in the District of Columbia for the private design, construction, fabrication, installation, operation, repair, and maintenance of all street furniture, except bus shelters which, through October 4, 2003, are covered by a prior franchise agreement (Bus Shelter franchise agreement) entered pursuant to the District of Columbia Bus Shelter Act of 1979, effective May 10, 1980 (D.C. Law 3-67; 27 DCR 1266). Upon the expiration of the bus shelter franchise agreement, bus shelters shall be subject to the street furniture franchise agreement established pursuant to this act.

(d) The franchise agreement entered pursuant to this act shall be for a period not to exceed 20 years. In its discretion, DDOT may enter a franchise agreement for an initial period of less than 20 years, and subsequently extend the agreement through one or more option periods. The total duration of the agreement including the exercise of any options shall not exceed 20 years.

(e) If DDOT does not extend the franchise agreement, DDOT may enter into a new franchise, agreement in accordance with the provisions of this act. The term of the new franchise agreement shall not extend beyond the 20th' anniversary of the effective date of the first franchise agreement awarded pursuant to this act.

(f) The Director of DDOT shall have full authority to conduct this procurement and execute the franchise agreement independent of any actions or review by the Chief Procurement Officer or the Contracts Appeals Board.

(g) Under the terms of the franchise agreement, the franchisee shall be responsible for:

(1) All costs and expenses for the design, fabrication , construction, operation, maintenance, and repair of the street furniture, and any damage that results from the installation, repair, or relocation of such street furniture;

(2) Assuring that all books, records, and documents are maintained and available for the period of time specified in the franchise agreement and are available to persons authorized by DDOT to have access thereto, and available for audit;

(3) Maintaining, at the franchisee's expense, such insurance bonds and indemnification requirements as specified in the franchise agreement from the commencement of the agreement throughout the term of the agreement including, but not limited to, motor vehicle insurance for personal injury and property damage for all vehicles owned, hired, or used during the term of the agreement; general bodily injury liability and property damage liability insurance; worker's compensation insurance, employer's liability insurance; umbrella liability insurance; product liability; performance security, and any other insurance deemed necessary by DDOT with the level of coverage specified in the franchise agreement;

(4) Acquiring advertisements which shall be approval by DDOT to be placed on certain street furniture as specified by DDOT and at such locations as approved by the DDOT; and

(5) Upon the expiration of the prior, Bus Shelter franchise agreement on October 4, 2003:

(A) Relocating existing bus shelters to new sites designated by the District; and

(B) Removing and relocating bus shelters due to changes in routes.

(h) The franchise agreement shall establish:

(1) A plan for the type of street furniture to be acquired for each neighborhood;

(2) The types of street furniture that will be acquired;

(3) The location of street furniture;

(4) Any limitations on the type of advertising permitted on street furniture;

(5) Limitations on the percentage of street furniture that may contain advertisements;

(6) The process for approving advertisement placed on the street furniture;

(7) The minimum percentage of advertising space that shall be available for public service announcements; and

(8) The franchise fee to be paid to the District of Columbia, which shall be calculated in the manner specified in the franchise agreement and may include, but not be limited to, any of the following: a guaranteed annual minimum fee; a percentage of annual gross projected advertising revenue; a lump sum cash bonus for entering into a franchise agreement; or such other revenue sharing arrangement as may be accepted by the DDOT.

(i) Upon termination or expiration of the franchise agreement, the ownership and disposition of all street furniture created or maintained pursuant to the franchise agreement shall be determined in accordance with the franchise agreement.

Sec. 3. Deposit of Franchise Fee

All funds paid to the District pursuant to the franchise agreement shall be deposited into the District of Columbia Highway Trust Fund.

Sec. 4. Advertising.

(a) The advertisements displayed on street furniture pursuant to this act shall not be deceptive, misleading, untruthful, obscene or in violation of the District of Columbia Consumer Protection Procedures Act, effective July 22, 1976 (D.C. Law 1-76; D.C. Official Code 28-3901 et seq.).

(b) Street furniture shall contain the minimum amount of advertising necessary to provide the desired economic return to the District- and the amenities specified in the franchise agreement.

(c) Advertising displays on street furniture shall not extend beyond the exterior limits of the street furniture.

(d) There shall be no advertisements posted related to tobacco products.

(e) No more than 50% of the advertisements posted shall relate to alcoholic beverages. This amount shall be determined by the total number of hours an advertisement is displayed in a calendar year.

(f) A minimum of 10% of the street furniture shall not contain any advertisement.

(g) DDOT shall have the right to remove any advertisement that is places in violation of the franchise agreement or in violation of law.

Sec. 5. Required Provisions in the Franchise Agreement.

(a) DDOT shall notify the franchisee in writing of any violations of the franchise agreement and establish a compliance schedule for correcting the violations. In the event that the compliance schedule is not met, DDOT may terminate the franchise agreement in accordance with the terms of the franchise agreement.

(c) If the Mayor, the Director of the Department of Public Works, or the Director of DDOT, receives notice from the United States Secretary of Transportation that the future operation of the franchise agreement may result in a reduction of the District's share of federal highway funds pursuant to section 131 of Title 23 .of the United States Code, the franchisee will remove the advertisement within 30 days from the date of receipt of the notice by the District. Upon the expiration of the 30 days specified in this subsection, if, the franchisee fails to cure the violation that resulted in the threatened reduction of highway funds, the Director of DDOT may terminate the franchise agreement.

(d) The Contract Appeals Board shall have no jurisdiction to hear or decide any matter with respect to the solicitation, award, or administration of any franchise agent authorized by this act. The Contract Appeals Board shall forthwith dismiss any petition or complaint filed with respect to such an agreement.

Sec. 6. Relation to Other Provisions of Law.

(a) The provisions of section 2 of An Act To regulate the erection, hanging, placing, painting, display, and maintenance of outdoor signs and other forms of exterior advertising within the District of Columbia, approved March 3, 1931 (46 Stat. 1486; D.C. Official Code §1-303.22 ), and 12A DCMR 3111.0 through 3125.0, pertaining to outdoor signs and other forms of exterior advertising in the District of Columbia, shall not apply to the advertisement resulting from the franchise agreement.

(b) The procurement based on this act and the resulting franchise agreement, shall not be subject to the District of Columbia Procurement Practices Act of 1985, effective February 21, 1986 (D.C. Law 6-85; D.C. Official Code §2-301.01 et seq.).

Sec. 7. Successor Agency

In the event that DDOT is reorganized into a new Department of Transportation or other similar entity, the authority of the Director of DDOT under this act shall be assumed by the successor agency.

Sec. 8. Fiscal Impact.

The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(3)).

Sec. 9. Effective Date.

This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), a 30-day period of Congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of Columbia Register.

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DISTRICT OF COLUMBIA STREET FURNITURE ACT OF 2002

SECTION BY SECTION ANALYSIS OF THE BILL

Section 1:

States the purpose and short title of the act.

Section 2:

Authorizes the District Division of Transportation to issue a request for proposals and enter a franchise agreement for the fabrication, construction, installation, operation, repair and maintenance of street furniture. After October 4, 2003, bus shelters shall be subject to this act. The franchisee will be permitted to acquire advertisements for some of furniture. The franchise agreement shall not exceed 20 years. The franchisee will bear all costs related to the franchise agreement. The District will be paid a franchise fee in accordance with the terms agreement.

Section 3:

Provides that the franchise fee be deposited into the District of Columbia Highway Trust Fund.

Section 4.

Establishes requirements for advertisements. Advertisements shall not be deceptive or obscene, be kept to a minimum, not include tobacco products, be subject to removal if in violation of the franchise agreement or law.

Section 5.

Sets forth provisions required to be in the franchise agreement including notification of violations, default, and procedures for handling any advertisements that are in violation of federal law on the display of advertisements. The Contracts Appeals Board shall have no jurisdiction over any matter arising out the solicitation, award, or administration of the franchise agreement.

Section 6.

Establishes that the procurement and the resulting franchise agreement shall not be subject to laws that normally govern the erection of outdoor signs in the District including An Act To regulate the erection, hanging, placing, painting, display and maintenance of outdoor signs and other forms of exterior advertising within the District of Columbia, approved March 3, 1931 (46 Stat. 1486; D.C. Official Code § 303.22) and 12A DCMR 3111.0 through 3125.0. The procurement and franchise agreement shall not be subject to the District of Columbia Procurement Practices Act of 1985, effective February 21, 1986 (D.C. Law 6-85; D. C. Official Code §2-301.01 et sec .)

Section 7.

Provides that if there is a successor agency to the District Division of Transportation, it shall have the powers granted to the District Division of Transportation pursuant to this act.

Contains the fiscal impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(3)).

Establishes the effectiveness of the act after approval by the Council and the Mayor ( or an override of a veto) and the passage of the 30-day period of Congressional Review.