Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Revenue And Infrastructure topic
No spam. Unsubscribe anytime.
Finance panel forwards Clear Channel transit-shelter deal to full board amid concerns about digital ads and future amendments
Summary
SFMTA presented a negotiated 15-year transit-shelter advertising and maintenance agreement with Clear Channel that would pay an upfront sum and annual guarantees to the city; Supervisors sent the ordinance and controller report to the full board without recommendation while demanding clearer limits on signal-cover ads, experimental advertising and amending language that could confer future exclusive rights.
San Francisco The Finance Committee considered a major, long-term advertising and street-furniture agreement negotiated by the San Francisco Municipal Transportation Agency and Clear Channel Outdoor.
SFMTA staff said the proposed 15-year deal would provide an upfront payment (the staff cited roughly $33.5 million) and annual minimum-guarantees that materially increase revenues available to the agency. The agreement requires the contractor to replace and maintain thousands of shelters and kiosks, install next-Muni signage at shelters, meet twice-weekly maintenance inspections, use vandal-resistant materials and offer online reporting for maintenance requests. The contract also includes performance bonds, letters of credit and liquidated damages, including $5,000 per day penalties for noncompliant alcohol ads that violate the agencys advertising policy.
Judson True of SFMTA said the RFP process produced a single top-ranked proposer, Clear Channel, and that independent consulting review (Booz Allen Hamilton) supported the agencys financial assumptions. Clear Channel would pay a revenue-share above the contract's minimum guarantee (55 percent in the initial 15-year term) and contribute to arts-commission and marketing funds.
Supervisors pressed staff on several points. Supervisor Aaron Peskin and Supervisor Tom Ammiano asked staff to tighten the contract language to cap the total number of commercial signal-control covers and kiosks so the number could not exceed 150 combined, and to clarify who within SFMTA may approve "experimental" advertising media. Supervisor McGoldrick urged removing two clauses that he said could grant the contractor exclusive rights in unspecified future programs (bicycle sharing and canopy/canopy-like installations) before the city had defined scope or competitive options.
Public testimony included repeated concerns about the proliferation of commercial advertising in public space, the potential for digital or rotating ads, and the need for a public, auditable database showing what ads are placed where. Several speakers and advocates asked the city to ensure that financial reports and the contractors projections are public and enforceable; SFMTA staff said Clear Channel will make annual financial reports available to the city and that the contract includes strong disclosure and audit rights for the agency.
The committee moved items 10 and 11 to the full Board of Supervisors without recommendation to allow additional legal and drafting clarifications on signal-control covers, "experimental" advertising, and the provisions supervisors flagged for deletion or rewording. SFMTA staff said they will work with Board counsel and the contractor on tightened language and return to the full board with any agreed changes.
