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Consider allowing the Non-Exclusive License Agreement with Pin High Investments for the placement and maintenance of bus bench facilities with advertising at locations along the Lawton Area Transit System bus routes to expire.
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INITIATOR: Christine James, Planning Director
STAFF INFORMATION SOURCE: Christine James, Planning Director
BACKGROUND: On December 17, 2002, Council approved an agreement with Pin High Investments for placement and maintenance of bus bench facilities with advertising at locations along the Lawton Area Transit System bus routes. On May 22, 2007, a five-year renewal with two single year extensions was approved, with the last extension expiring on July 14, 2014. A new Non-Exclusive License Agreement with Pin High Investments for the placement and maintenance of bus bench facilities with advertising at locations along the Lawton Area Transit System bus routes was approved on February 10, 2015. This contract is from July 15, 2014, to July 14, 2024, with two 5 year optional extensions.
On June 10, 2024, Staff sent a letter to PinHigh stating Staff's intention to bring this item to the Trust on June 25, 2024. The letter also outlines the current status of the contract with PinHigh.
PinHigh has failed to provide payment for the last four years (2020-2023) for a total of $4,800. Paragraph 3 of the contract outlines the fee schedule.
PinHigh has failed to provide proof of insurance since 2020, as required in paragraph 4 of the contract.
At the conclusion of the contract all shelters and benches included in the contract will become the property of the Transit Trust unless that shelter or bench is less than ten years old. There is one shelter that is less than ten years old as it was replaced in 2018 at a cost of $7,635.00. At the conclusion of the contract this shelter will have depreciated (as per paragraph 17 of the contract) to a value of $3,054.00 (less than the amount PinHigh owes the Trust for the years from 2020...
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