Agenda Index City of Vancouver


Date: October 7, 1997

Dept. File No. 3203-1

CC File No. 5554

TO: Vancouver City Council

FROM: The General Manager of Engineering Services in

Consultation with the Manager of Real Estate Services

SUBJECT: Seaboard Bus Shelters - Rent Review


A.THAT Council approve the increases of rental fee for Seaboard bus shelters on City streets to $127 per month, relocation fee to $1500 per shelter, and processing fee to $75 per shelter.

B.THAT Seaboard be requested to work with City staff to develop an enhanced shelter for major stops and transfer points as a follow-up to the Transportation Plan.


The General Managers of Engineering Services and Corporate Services RECOMMEND approval of the foregoing.


The Director of Finance can approve leases and lease renewals:

A. If the total value is less than $250,000; or

B. If the term is no more than five years.


The purpose of this report is to seek Council approval to increase the rental fee for Seaboard bus shelters on City streets to $127 per month, the relocation fee to $1,500 per shelter, and the processing fee to $75 per shelter. These new rates will be for a five year contract renewal term from the 1st day of September, 1997, and ending on the 31st day of August, 2002.


The City has a ten year contract with Seaboard Advertising for the installation and maintenance of bus shelters on City streets, which began in 1992. There is a five year renewal clause in the contract stipulating that new rates for the monthly shelter rental fee, relocation fee and processing fee are to be renegotiated for the latter five-year term from September 1, 1997, to August 31, 2002.

The arrangement with Seaboard has been successful in providing the public with a covered weather-protected shelter at many of the bus stops in the City. There are about 340 bus shelters installed by Seaboard Advertising on City streets. Bus shelter installation and maintenance are undertaken at the cost of Seaboard Advertising. The existing contract requires Seaboard to install a minimum of twenty bus shelters per year (ten shelters at new locations plus ten shelters to replace City shelters). Ten percent of the shelter advertising space is made available to the City for public service notices, festival and concert advertising, etc.

Aside from providing a much needed public service, the Seaboard bus shelter program generated revenue of $136,900 for the City in 1996.


From our discussions with a Seaboard Advertising representative, the following is a summary of the existing rates and what is proposed for the next five years:

Existing Proposed

Monthly Rental Fee $ 50 per shelter $ 127 per shelter

Relocation Fee $1000 per shelter $1500 per shelter

Processing Fee $ 50 per shelter $ 75 per shelter

The monthly rental fee is comparable to what other major Canadian cities are charging for advertising bus shelters. The new relocation fee and processing fee will cover City costs such as works required to remove and/or relocate an existing City bus shelter to accommodate a new Seaboard bus shelter.

In 1997, a rental fee is payable on roughly 240 out of 340 existing bus shelters. For each shelter installation, a rental fee is only payable after a Grace Period of five years. Assuming that rent is applicable to an additional twenty shelters per year, the overall revenue would be about $2.1 million over the course of the five-year term.

The Manager of Real Estate Services is of the opinion that the proposed new rent is representative of current market conditions.


It is recommended that Council approve the new fee schedule as described in this report.

In addition, the City’s Transportation Plan proposed the provision of higher-standard shelters at major bus stops. It is proposed to work with Seaboard to develop suitable shelters for these locations.

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