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47 APPENDIX B: Sample Franchise Agreements The District of Columbia franchise agreement is available at www.ddot.dc.gov/cwp/view,a,1255,q,633272.asp. St. Paul, Minnesota456 Appendix I. Bus Stop Shelter Franchise* *Editor's noteâ-Appendix I, §§ 1â-28, is derived from Ord. No. 17237, §§ 1--28, adopted May 9, 1985. Section 27 of Ord. No. 17237 deems that said ordinance be incorporated into the Legislative Code, but does not specify the exact nature of that incorporation. At the editor's discretion, there- fore, Ord. No. 17237 has been included as App. I. Section 1. Grant. Acting pursuant to the authority granted to the City of Saint Paul by the Minnesota State Legis- lature pursuant to Minnesota Statutes, Section 160.27, Subdivision 2, the council of the City of Saint Paul does hereby grant to Ad Shelters, Inc. (hereinafter referred to as "company") a nonex- clusive bus stop shelter franchise subject to all the terms and conditions set forth in this franchise ordinance. (Ord. No. 17237, § 1, 5-9-85; C.F. No. 95-516, § 1, 6-7-95; C.F. No. 05-457, § 1, 6-8-05) Section 2. Rights and privileges of company. The franchise granted by the city shall grant to the company the right to place and maintain within the limits of any streets within the City of Saint Paul, for the convenience and comfort of persons waiting for buses at such locations as may be designated by the city in the manner pro- vided herein, bus shelters with advertising displayed thereon subject to the limits and conditions set forth in this franchise ordinance. (Ord. No. 17237, § 2, 5-9-85; C.F. No. 95-516, § 2, 6-7-95; C.F. No. 05-457, § 2, 6-8-05) Section 3. Agreement. Upon adoption of this franchise ordinance and execution of the acceptance thereof by the com- pany, the company agrees to be bound by all the terms and conditions contained herein. The com- pany also agrees to provide all services set forth in its application and by its acceptance of the franchise, company specifically agrees that the company's application is thereby incorporated by reference and made a part of this franchise ordinance. In the event of a conflict between the appli- 456 www.stpaul.gov/code/appi.html.
48 cation made by the company and the provisions of this ordinance, that provision which provides the greatest benefit to the city in the opinion of the city council shall prevail. (Ord. No. 17237, § 3, 5-9-85; C.F. No. 95-516, § 3, 6-7-95; C.F. No. 05-457, § 3, 6-8-05) Section 4. Termâ-Renewal. The term of this franchise granted by the city shall be for a term of ten (10) years from and after July 1, 2005. Thereafter the franchise may be renewed for an additional ten-year term on such terms and conditions as may be mutually acceptable to the city council and company. (Ord. No. 17237, § 4, 5-9-85; C.F. No. 95-516, § 4, 6-7-95; C.F. No. 05-457, § 4, 6-8-05) Section 5. Commencement of term. The franchise term shall commence with the effective date of this ordinance; provided, that the company has filed within thirty (30) days after publication of this ordinance a written acceptance hereof with the city clerk in such form as the city attorney may approve; and provided, that a bond or letter of credit and the evidence of comprehensive liability insurance, which are required by this ordinance, shall have been approved and have been filed with the city clerk within ninety (90) days after the publication of this ordinance. (Ord. No. 17237, § 5, 5-9-85; C.F. No. 95-516, § 5, 6-7-95; C.F. No. 05-457, § 5, 6-8-05) Section 6. Area. This franchise is granted for the entire area of the City of Saint Paul as it exists and as its bor- ders may from time to time be changed. (Ord. No. 17237, § 6, 5-9-85; C.F. No. 95-516, § 6, 6-7-95; C.F. No. 05-457, § 6, 6-8-05) Section 7. Police powers. In accepting this franchise the company acknowledges that its rights hereunder are subject to the police power of the city to adopt and enforce general ordinances necessary to the safety and welfare of the public; and it agrees to comply with all applicable general laws and ordinances en- acted by the city pursuant to such power. (Ord. No. 17237, § 7, 5-9-85; C.F. No. 95-516, § 7, 6-7-95; C.F. No. 05-457, § 7, 6-8-05) Section 8. Other franchises. No bus stop shelters with advertising displayed thereon shall be allowed to occupy or use a right-of-way of any street or highway within the City of Saint Paul without a franchise. This shall not, however, include non-advertising shelters constructed by Metro Transit. The rights hereby granted are not exclusive and the city may grant like rights and responsibilities to other persons during the term of this franchise. (Ord. No. 17237, § 8, 5-9-85; C.F. No. 95-516, § 8, 6-7-95; C.F. No. 05-457, § 8, 6-8-05)
49 Section 9. Notices. All notices from company to the city pursuant to this franchise shall be to the director of the de- partment of public works unless otherwise stated herein, or to any other officer designated by the director of the department of public works. Company shall maintain throughout the term of this franchise a local office and address for service of notices by mail. Company shall also maintain with the city a local office and telephone number for the conduct of matters related to this fran- chise open during normal business hours. (Ord. No. 17237, § 9, 5-9-85; C.F. No. 95-516, § 9, 6-7-95; C.F. No. 05-457, § 9, 6-8-05) Section 10. Fee for franchiseâMinimum fee. In consideration of the rights granted the company by this franchise, the company agrees to pay the city a fee based upon the annual gross revenue collected that the company derives from adver- tising on shelters located within the city in accordance with the following schedule: (1) If annual gross revenues are less than four hundred twenty-five thousand dollars ($425,000.00): Nine (9) percent. (2) If annual gross revenues are four hundred twenty-five thousand dollars ($425,000.00) but less than four hundred seventy-five thousand dollars ($475,000.00): Ten (10) percent. (3) If annual gross revenues are four hundred seventy-five thousand dollars ($475,000.00) but less than five hundred fifty thousand dollars ($550,000.00): Eleven (11) percent. (4) If annual gross revenues are more than five hundred fifty thousand dollars ($550,000.00): Twelve (12) percent. The fee shall be paid to the Saint Paul Public Works DepartmentâAccounting Section quarterly within thirty (30) days after the expiration of each calendar quarter. Each payment shall be based upon the gross advertising revenues received in the preceding calendar quarter. The quarterly fee payment due shall be determined by multiplying the gross revenues for the quarter by that per- centage that would be applied assuming that the annual gross revenues will be four (4) times the gross revenues for that quarter. The gross revenue as defined shall mean all advertising revenue derived directly or indirectly by the company, its affiliates, subsidiaries, apparent or any person in which the company has a finan- cial interest, from or in connection with the operation of the franchise prior to any deduction; pro- vided, however, that this shall not include any taxes on services furnished by the company herein imposed directly upon any advertiser by the city, state or other governmental unit and collected by the company on behalf of said governmental unit.
50 (Ord. No. 17237, § 10, 5-9-85; C.F. No. 95-516, § 10, 6-7-95; C.F. No. 05-457, § 10, 6-8-05; C.F. No. 05-457, § 10, 6-8-05) Section 11. Accounts and records. The company shall keep books of account and records of all business transacted and costs in- curred in connection with the purchase, manufacture and installation of the shelters and advertis- ing on shelters, showing all financial transactions including receipts and disbursements and the particulars thereof in a form satisfactory to the director of the department of finance and man- agement services. Company shall make such books of account and records available at all reason- able times for inspection, examination or audit by city officers, employees or agents. Company shall submit such statements in regard to revenues the city's director of the department of finance and management services may reasonably require. The company shall file annually with the city no later than one hundred twenty (120) days after the end of the company's fiscal year, a copy of a financial report applicable to the Saint Paul Bus Shelter System, including an income statement relating to its operations during the fiscal year and a balance sheet, both of which shall be certified as correct by an independent certified public ac- countant, and a statement of its properties, equipment and facilities which are located upon the streets, highways and public places within the city giving its investment in such facilities on the basis of original cost, less applicable depreciation. These reports shall be certified as correct by an authorized officer of the company and shall be submitted along with such other reasonable infor- mation as the city shall request with respect to the company's facilities and expenses related to its bus stop shelter system operations within the city. The company shall also file with the city clerk copies of its articles of incorporation, bylaws, agreements with any other person relating to the ownership of the bus stop shelter system, and amendments of such documents as they become effective. (Ord. No. 17237, § 11, 5-9-85; C.F. No. 95-516, § 11, 6-7-95; C.F. No. 05-457, § 11, 6-8-05) Section 12. Insurance. The company shall, during the entire term of this franchise and extensions thereof, maintain in force, at its own expense, a policy of comprehensive liability insurance to be filed and maintained with the department of finance and management services. The insurance policy shall insure the city, members of its board and commissions and its officers, employees and agents, and the com- pany from all liability on account of injuries, death or damage to any person or persons and dam- age to property arising out of or resulting from or in connection with the construction, operation, maintenance, location, placement or removal of any shelter or other facility of the company, or oc-
51 casioned by any of the activities of the company, its officers, agents or employees under this fran- chise. Minimum liability limits under the policy are to be one million dollars ($1,000,000.00) for bodily injury or death of any one person; two million dollars ($2,000,000.00) for bodily injury or death of more than one person in a single occurrence; and one million dollars ($1,000,000.00) for property damage to one claimant and two million dollars ($2,000,000.00) for more than one claim- ant in a single occurrence. The policy shall be of type in which coverage is restored immediately after the occurrence of any loss or accident from which liability may thereafter accrue. The policy shall contain an endorse- ment which shall provide that no cancellation shall become effective without thirty (30) days' prior written notice to the city of intent to cancel or not to renew. In the event such insurance is can- celled and the company shall fail to immediately replace it with another equivalent policy, the city may terminate their franchise and declare it to be forfeited. (Ord. No. 17237, § 12, 5-9-85; C.F. No. 95-516, § 12, 6-7-95; C.F. No. 05-457, § 12, 6-8-05) Section 13. Indemnification. A. The company shall fully indemnify, defend and save harmless the city, its officers, board, commissions, employees and agents from any and all claims, suits, actions, liability and judgments for damages (including, but not limited to, expenses for reasonable legal fees and disbursements assumed by the city in connection therewith): (1) For injury or death to any person or persons or damage to property arising from or in con- nection with the acts of the company, its officers, agents or employees in the construction, opera- tion, maintenance, location, placement or removal of any bus stop shelter or other facility of the company; (2) Arising out of replacement or display of any advertisements, notices, signs or posters on any shelters; or (3) Arising out of the exercise of any other right or privilege under the franchise. B. In the event that suit is brought or that damages or other recourse shall be sought against the city, either independent or jointly with the company on account of or arising out of any injury, death, property damage or activity of the company referred to in subparagraph A of this section, the company, upon notice by the city, shall defend the city in such suit or action at the cost of the company, and in the event of final judgment being obtained against the city, either independently or jointly with the company, the company shall indemnify the city and pay such judgment with all costs and hold the city harmless therefrom. The company shall pay all expenses incurred by the city in defending itself with regard to all damages and liability referred to in this section. Nothing
52 herein shall be deemed to prevent the city from participating in the defense of any litigation by its own counsel at its own sole cost and expense. (Ord. No. 17237, § 13, 5-9-85; C.F. No. 95-516, § 13, 6-7-95; C.F. No. 05-457, § 13, 6-8-05) Section 14. Assignment or transfer. A. The franchise shall not be sold, assigned or transferred, either in whole or in part, or leased, sublet or mortgaged in any manner, nor shall title thereto, either legal or equitable or any right, interest or property therein, pass to or vest in any person without the prior consent of the Saint Paul City Council which consent shall not be unreasonably withheld. Any assignee, lessee, mortgagee and any person or entity having or acquiring any interest, right or title in or to the fa- cilities that are installed or operated hereunder must show financial responsibility as determined by the city and agree to comply with all provisions of the franchise. Any document by which any interest, right or title to the franchise or the facilities that are installed or operated hereunder are transferred to or vested in any person shall, by its terms, be expressly subordinate to the terms and conditions of the franchise. B. The company shall notify the city by certified mail, return receipt requested, of any actual or proposed change in, or transfer of, or acquisition by any other party of, control of the company or the facilities installed hereunder. The word "control," as used herein, is not limited to major stock- holders but includes actual working control in whatever manner exercised. Any transfer, sale or assignment of the franchise, or control of the company, or facilities that are installed or operated hereunder, shall be cause for forfeiture of the franchise unless and until the city shall have con- sented thereto, which consent shall not be unreasonably withheld. The city shall be deemed to have consented to a transfer or acquisition of stock in the company unless the city disapproves the same within thirty (30) days after receipt of notice of any proposed or actual transfer of stock or notifies the company within thirty (30) days that additional time is necessary to consider the mat- ter. The company shall, when it files its acceptance of this franchise, also file a list of its stockhold- ers, all agents or nominees of the company and all persons having a beneficial interest therein, stating the nature of such interest. (Ord. No. 17237, § 14, 5-9-85; C.F. No. 95-516, § 14, 6-7-95; C.F. No. 05-457, § 14, 6-8-05) Section 15. Locations. No shelter shall be placed upon the public street or highway right-of-way until the following procedure has been accomplished and the location has been approved by the council; A. The company shall give written notice to abutting property owners at least ten (10) days prior to the date set for a public hearing and furnish them with a site plan upon their request.
53 B. The company shall print in a newspaper of general circulation in the City of Saint Paul at least ten (10) days prior to the date set for public hearing, notice of such public hearing. C. The company shall submit to the director of public works ten (10) copies of a site plan, a de- scription of how electrical service will be provided and any unique shelter design required to ac- commodate the shelter to the location, and any other information the director may require. No shelter may be placed upon the public right-of-way unless the site plan is approved by the director. D. The company shall notify all utility locaters and submit to the director proofs that such no- tice has been given. E. The company must obtain all building and other required permits from the city or any other agency of government as the law requires, including a permit from the proper road authority if other than the city. The council shall hold a public hearing with regard to the approval of all new locations. All loca- tions and installations must conform to the zoning ordinance of the city. (Ord. No. 17237, § 15, 5-9-85; C.F. No. 95-516, § 15, 6-7-95; C.F. No. 05-457, § 15, 6-8-05) Section 16. Performance bond. Within ninety (90) days after the publication of this ordinance, the company shall file with the city clerk a performance bond in the amount of twenty-five thousand dollars ($25,000.00) in favor of the city. The bond shall be maintained throughout the term of the franchise and until the com- pany shall have liquidated all of its obligations with the city. In the event the company fails to comply with any law, ordinance or regulation governing the franchise or fails to well and truly ob- serve, fulfill and perform each term and condition of the franchise, including the company's appli- cation which is incorporated as though fully set out herein, there shall be recoverable, jointly and severally, from the principal and surety of the bond any damages or loss suffered by the city as a result, including the full amount of any compensation due the city, indemnification for the cost of removal and storage of any shelter, plus a reasonable allowance for attorney's fees, including the city's legal staff, and costs up to the full amount of the bond. The bond shall also be conditioned upon the removal at the expiration or termination of the franchise of the company's shelters and the restoration of the streets and public places of the city to their former condition. The bond shall contain an endorsement that no cancellation shall be ef- fective until ninety (90) days after receipt by the city clerk of a written notice of intent to cancel or not to renew sent by certified mail, return receipt requested. No cancellation shall be effective if the surety has received notice by the city of the company's default. The bond may not be cancelled
54 and shall remain in effect in the period commencing at the expiration or termination of the fran- chise and for three hundred sixty-five (365) days thereafter. (Ord. No. 17237, § 16, 5-9-85; Ord. No. 17575, § 1, 7-19-88; C.F. No. 95-516, § 16, 6-7-95; C.F. No. 05-457, § 16, 6-8-05) Section 16A. Optional letter of credit. In lieu of the performance bond required under Section 16, the company may elect to give the city a letter of credit for twenty-five thousand dollars ($25,000.00) issued by a bank in the metro- politan area. The letter of credit shall provide that it may be drawn upon under the same circum- stances as a surety would be subject to a claim under its bond as provided in Section 16 with re- spect to the performance bond, except that the letter of credit shall be subject to a draw without any previous demand upon, or notice to the company. The letter of credit shall also be subject to a draw if it is effective for a limited term and is not replaced by a replacement letter of credit at least thirty (30) days before expiration. The letter of credit shall also be in a form approved by the city attorney and shall be on file with the city clerk and remain so until three hundred sixty-five (365) days after the expiration or termination of the franchise. (C.F. No. 95-516, § 16A, 6-7-95; C.F. No. 05-457, § 16A, 6-8-05) Section 17. Removal of shelter. A. The council may order company to remove any shelter when it reasonably determines that it is no longer of any benefit to the public, when there is no longer a bus stop at the location or when it finds that maintenance is inadequate under Section 20 herein. If the city requires removal of a bus shelter because of relocation of all or part of a bus route, the city shall give the company a reasonable period of time to remove the shelters thereof. If the city requires the removal of more than four (4) bus shelters because of the relocation of a bus route, the reasonable costs of removing or relocating the shelters may be set off against the franchise fee due the city. B. If a shelter must be temporarily removed for construction done by any governmental unit or its contractor, company shall, after being given two (2) weeks' written notice, at its own cost re- move the shelter promptly when requested to do so by the director of public works. The city may also, upon two (2) weeks' written notice, order the company to temporarily remove a shelter for an abutting owner's construction at such owner's expense. The city shall not be required to provide two (2) weeks' advance written notice when and in the event the removal of the shelter is required on account of an unexpected or emergency situation.
55 C. If the company fails promptly to remove a shelter when ordered to do so by the director of public works or council, the city may have the shelter removed within thirty (30) days after written notice to the company, and the company shall pay the cost of removal or storage thereof. (Ord. No. 17237, § 17, 5-9-85; C.F. No. 95-516, § 17, 6-7-95; C.F. No. 05-457, § 17, 6-8-05) Section 18. Public works to regulate installation. The director of public works shall regulate the installation of shelters and if, in the opinion of the director of public works, the shelter installation is hazardous, the director may order the com- pany to take necessary steps at its own cost to remove or relocate the shelter or make the neces- sary repairs to correct the hazard. The director of public works has the right to conduct reasonable inspections of shelters for this purpose. In regulating the installation of shelters, the director of public works shall regulate the size of shelters installed, its orientation or placement on the site, and any preparatory or remedial site work. When the city has approved a site plan, the company shall submit detailed amended plans showing any discrepancies between the site plan approved and the work completed. The company shall install and maintain a minimum of one hundred (100) shelters within the franchise area unless otherwise approved by the city. (Ord. No. 17237, § 18, 5-9-85; C.F. No. 95-516, § 18, 6-7-95; C.F. No. 05-457, § 18, 6-8-05) Section 19. City may require sheltersâInstallation schedule. The city may require the company to install shelters at such locations it may reasonably desig- nate within the city and may require the company to take the procedural steps necessary for the approval of such locations as specified in Section 15 herein within thirty (30) days after it desig- nates such location or locations. Shelters shall be installed at a location within three (3) months after the location is approved by the council; provided, however, that the company shall not be required to install more than twenty (20) shelters in any three-month period. The months of December, January, February and March shall not be included in determining either three-month period. If the company establishes that the cost of maintaining a shelter exceeds the actual costs of in- stalling the shelter, the company shall not be required to keep and maintain a shelter at such loca- tion; otherwise no shelter may be removed from an approved location without the consent of the council. The city shall not permit any other bus stop shelter franchisee to install or retrofit a shel- ter within one block of a shelter installed and maintained by the company in the central business district or two (2) blocks in the remainder of the city. (Ord. No. 17237, § 19, 5-9-85; C.F. No. 95-516, § 19, 6-7-95; C.F. No. 05-457, § 19, 6-8-05)
56 Section 20. Maintenance. The company will maintain all shelters to the reasonable satisfaction of the director of public works as set out below. Maintenance includes cleaning and washing the entire shelter inside and out; removal of graffiti, stickers, posters, notices and the like; removal of litter within fifty (50) feet of the company's shelter in an area between the public sidewalk right of way property line on the shelter side of the street and the street curbline on the shelter side of the street, weeds and grasses inside and adjacent to the shelter; repair and replacement of damaged or broken parts; the supply of replacement parts; replacement of burned-out lighting fixtures; the supply of electrical energy; and clearing snow from inside the shelter, and cleaning snow, dirt and debris in the area between the shelter and the curbline. The company is not required to remove litter on any adjacent private property. The company shall clean and wash and remove graffiti, stickers, posters, litter and weeds at each shelter at least once every week, or more frequently if required, to keep each shelter free of any noticeable accumulation of dirt, dust, marks, stickers, posters, litter or weeds. In addi- tion, the company shall remove litter from specific shelter(s) on a complaint basis within twenty- four (24) hours of receiving notice from the director of public works or designee. The company shall inspect each shelter at least once every seven (7) calendar days for any dam- aged or broken parts or burned-out lighting fixtures and the company shall repair or replace dam- aged or broken parts and burned-out lighting fixtures within twenty-four (24) hours after the com- pany becomes aware of the damage, breakage or burn-out. (Ord. No. 17237, § 20, 5-9-85; C.F. No. 95-516, § 20, 6-7-95; C.F. No. 05-457, § 20, 6-8-05) Section 21. Advertising. The company shall limit advertising to one-third (1/3) of the area of the vertical surface of the shelter. All advertising panels shall not be larger than four (4) feet by six (6) feet in dimension, ex- cept for specially designed artwork on shelters that provides additional revenue and is approved on a case by case basis by the director of public works or designee. The company shall not permit ob- scene, immoral or indecent advertising or political advertising of any character. The company shall not allow more than sixty (60) percent of the company's combined total advertising space on all shelters in the city to alcoholic beverage products at any time. There shall be no tobacco products advertised in accordance with state and federal laws. The company, in accepting this franchise, agrees to remove any advertising which the council determines to be inappropriate to the particu- lar location or surroundings of the shelter or inappropriate as a use of the public street right-of- way. The company shall provide equal access to all advertisers at reasonable rates. The company shall, upon notice, remove any advertisement of a private company or a commercial product or ser-
57 vice that has been placed or displayed on a shelter on the same street and within one (1) city block of any property owned or leased by a company which is in competition with, or which, as its princi- pal and primary business, markets a product or service which is advertised. The city has the right to use up to five (5) percent of the advertising panels for their own de- partmental public service announcements with a sixty (60) day advance notice and such space shall be subject to availability. City's announcement posters may be rotated to different locations as panels are sold to advertisers. City will provide franchisee with announcement posters ready to install. Advertising may be placed on shelters only in accordance with the Saint Paul Zoning Ordi- nances. (Ord. No. 17237, § 21, 5-9-85; C.F. No. 95-516, § 21, 6-7-95; C.F. No. 05-457, § 21, 6-8-05) Section 22. Forfeiture. A. The city shall, in addition to any other rights it may have, have the right to declare that the company has forfeited the franchise in the event of a substantial breach of its terms and condi- tions, including, but not limited to, the following circumstances: (1) If the company becomes insolvent or is declared bankrupt or makes any assignment for the benefit of its creditors; or (2) If the company assigns or transfers or attempts to assign or transfer the franchise, or sells or leases or attempts to sell or lease any of its shelters without the council's permission; or (3) If the company fails to install shelters on schedule as required in Section 19 of this ordi- nance, or fails to conform to the specifications contained in its application or the invitation for ap- plications, or fails to construct the shelters in a workmanlike manner to the satisfaction of the di- rector of public works and in conformity, with this ordinance, or if the company refuses or neglects when so ordered to take down, rebuild or repair any defective or unsatisfactory work or to main- tain the shelter as required under Section 20 herein; or (4) If the company fails to remove any shelter when ordered to do so in accordance with this ordinance; or (5) If the company refuses or neglects to comply with any reasonable order of the director of public works; or (6) If the company persists in any course of conduct in violation of any of the provisions of this ordinance; or (7) If the city receives notice of intention not to renew or the company fails to keep in force its insurance, bond and letter of credit required herein.
58 The foregoing shall not constitute a substantial breach if the breach occurs as a result of circum- stances over which the company has no control. The company shall not be excused by mere eco- nomic hardship nor by the neglect of its officers, agents, or employees. B. The director of public works may make a written demand by certified mail that the com- pany comply with any such provision, rule, order or determination under or pursuant to this fran- chise. Such notice shall be entitled "Forfeiture and Termination Notice." If the violation by the company continues for a period of thirty (30) days or more following such written demand, without having been corrected or remedied, the matter of forfeiture and termination of the franchise shall then be taken before the city council. The city shall cause to be served upon the company at least twenty (20) days prior to the date of such council meeting a written notice of intent to terminate the franchise, including the time and place of the meeting. Public notice shall be given of the meet- ing and issue which the council is to consider. The city council shall hear and consider the issue and the council shall, in its discretion, determine whether there has been a substantial breach. If the council determines that there has been a substantial breach, the company shall have such pe- riod of time as the council may set, but not less than thirty (30) days in which to cure the breach; provided, that no opportunity for cure need be given for fraud or misrepresentation. At the expira- tion of the period of time set for compliance, the council may terminate the franchise forthwith upon finding that the company has failed to cure the breach. If the company fails to cure, the city or any stockholder of the company may cure and the expense incurred shall be a debt of the com- pany to the stockholder or the city, as the case may be. C. There is no intention that the shelters shall be forfeited in the event of a forfeiture of the franchise, except as follows: In the event of forfeiture, the company shall forfeit to the city all equipment and facilities that may be located along, over or under any street or highway within the city, unless such property is removed by the company within ninety (90) days from the date of for- feiture. The performance bond or letter of credit posted in accordance with Section 16 or Section 16A shall remain posted to insure that the streets, highways and public places from which such equipment is removed shall be placed in good condition. (Ord. No. 17237, § 22, 5-9-85; C.F. No. 95-516, § 22, 6-7-95; C.F. No. 05-457, § 22, 6-8-05) Section 23. Disposition of shelters on expiration of franchise. A. In the event that the franchise expires and is not renewed, the city may purchase the shel- ters and facilities then in place upon such terms and for such consideration as may be agreed to by the city and the company prior to the expiration of the franchise. If prior to the expiration of the franchise or within ninety (90) days following such expiration the city elects to award a franchise
59 to any other person or company, and the city elects to have the new franchisee operate and main- tain the shelters which have been installed pursuant to this franchise, then the new franchisee shall purchase such shelters on such terms and for such consideration as may be agreed to by the new franchisee and the company. B. Notwithstanding the provisions of paragraph A of this section, in the event that the term of this franchise expires and the city and company have not renewed the franchise for an additional term, the company shall at its own expense remove all of the shelters and facilities which it has installed or caused to be installed upon or below the public streets and highways or public places of the city and shall restore the streets and highways of the city to their former condition in a man- ner satisfactory in the judgment of the director of public works. If the company fails to remove all such shelters and facilities within ninety (90) days after the expiration of the franchise, the city may have the shelters and facilities removed and require the company to pay the cost of such re- moval. In the event that the shelters and facilities have not been sold pursuant to paragraph A of this section or removed by the company, all right and title to the shelters shall be deemed to have passed to and vested in the city. The company agrees that in such circumstances it will execute such documents as the city attorney may require to transfer the title to such shelters and facilities. (Ord. No. 17237, § 23, 5-9-85; C.F. No. 95-516, § 23, 6-7-95; C.F. No. 05-457, § 23, 6-8-05) Section 24. Right of abutting property owner to construct shelter. Abutting property owners shall have the first right and privilege to construct, operate and main- tain shelters upon the public right-of-way of streets and highways of the city, at locations on or ad- jacent to the property of the owner. The abutting property owner shall give written notice to the council and the company of its election to construct a shelter at a given location no later than the date of the public hearing for the location of any shelter. If the abutting property owner so elects, the company may not construct a shelter at that location unless the abutting property owner con- sents in writing or fails to take affirmative measure to construct the shelter within ninety (90) days of its election. By electing to exercise its aforementioned first right and privilege, the abutting owner agrees to: (A) Permit no advertising on the shelter. (B) At all times maintain insurance pursuant to the terms of Section 12 of this ordinance. (C) Acknowledge that its rights are subject to the police power of the city pursuant to Section 7 of this ordinance. (D) Defend, indemnify and hold harmless the city, its officers and employees according to the terms and conditions of Section 13 of the ordinance.
60 (E) Submit all plans, specifications and drawings to the director of public works for approval prior to commencement of construction of the shelter. The director of public works shall regulate the installation of the shelters pursuant to Section 18. If the structural design of the shelter is similar to the structural design of the company's shelter, the director of public works shall require for his approval that the design, plans and engineering specifications be at least substantially equivalent in quality to those of the company's shelters. (F) Maintain its shelter pursuant to Section 20 of this ordinance. In the event the abutting owner fails to comply with any of the terms and conditions hereof, the city may require the owner to remove the shelter at its own expense. (Ord. No. 17237, § 24, 5-9-85; C.F. No. 95-516, § 24, 6-7-95; C.F. No. 05-457, § 24, 6-8-05) Section 25. Civil rights. The company shall at all times comply with the provisions of Chapter 183 of the Saint Paul Leg- islative Code and applicable state and federal law regarding nondiscrimination and civil rights. (Ord. No. 17237, § 25, 5-9-85; C.F. No. 95-516, § 25, 6-7-95; C.F. No. 05-457, § 25, 6-8-05) Section 26. Severability. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the valid- ity of the remaining portions thereof. (Ord. No. 17237, § 26, 5-9-85; C.F. No. 95-516, § 26, 6-7-95; C.F. No. 05-457, § 26, 6-8-05) Section 27. [Incorporation in Legislative Code.] This ordinance shall be deemed a part of the Saint Paul Legislative Code and shall be incorpo- rated therein as Appendix I. (Ord. No. 17237, § 27, 5-9-85; C.F. No. 95-516, § 27, 6-7-95; C.F. No. 05-457, § 27, 6-8-05) Section 28. [Effective date.] This ordinance shall take effect and be in force thirty (30) days from and after its passage, ap- proval and publication. (Ord. No. 17237, § 28, 5-9-85; C.F. No. 95-516, § 28, 6-7-95; C.F. No. 05-457, § 28, 6-8-05)
