HomeMy WebLinkAboutBy-law 2214/86THE CORPORATION OF THE TOWN OF PICKERING
BY-LAW NO. 2214 /86
Being a by-law to authorize the execution of an
Agreement between the Corporation of the Town
of Picketing and Jim Pattison Industries Ltd.,
c.o.b, as Trans Ad, respecting advertising in
and on Town-owned buses.
WHEREAS pursuant to the provisions of the Municipal Act, R.S.O. 1980, chapter 302,
section 210.98, by-laws may be passed for operating a public bus transportation
system, an aspect of which is advertising on and in buses operated within that
system;
NOW THEREFORE, the Council of the Corporation of the Town of Picketing HEREBY
ENACTS AS FOLLOWS:
The Mayor and Clerk are hereby authorized to execute an Agreement, in the
form attached hereto as Schedule A, between the Corporation of the Town of
Pickering and Jim Pattison Industries Ltd., c.o.b, as Trans Ad, respecting
advertising in and on Town-owned buses.
BY-LAW read a first, second and third time and finally passed this 5th day of May,
1986.
Ybhn E. Anc~son~ M-aydr ,
/Brfice Taylor, Clerk
TOWN OF
PICKERING
APPROVE[}
AS TO FOR[J
LEG.~L DF,::T.
SCHEDULE ^ TO BY-L~ No, 2214/8~
MEMORANDUM OF AGREEMENT dated this 5th day of May, 1986.
BETWEEN:
THE CORPORATION OF THE TOWN OF PICKERING
hereinafter called the "Town"
OF THE FIRST PART,
JIM PATTISON INDUSTRIES LTD.
carrying on business as "TRANS AD"
hereinafter called the "Contractor"
OF THE SECOND PART.
WITNESSETH:
Subject to the terms and conditions hereinafter set forth, the Town hereby
grants to the Contractor for a period of five years commencing as of the 1st
day of May, 19B6, and ending on the 30th day of April, 1091, the exclusive
right of advertising in and on all buses owned and operated by the Town
during the said period, except Handi-Trans buses.
The advertising space granted by this Agreement shall consist of the following:
A. Interior Space:
One row of racks eleven inches high in the head line of
the interior of each side of each bus and running from
end to end of each bus above the windows thereof.
B. Exterior Space: (a)
One frame twenty-one inches high by seventy
inches long, or one frame thirty inches high by
one hundred and thirty-nine inches wide, or both,
depending upon the size of the bus on each side
of the exterior of each bus;
(b)
One frame twenty-one inches high by seventy
inches long, on the exterior of the back of each
bus directly below the rear windows.
Notwithstanding the foregoing, the Town shall not be required to place racks or
frames in or on buses when such racks or frames cannot, in its opinion, be
conveniently or safety installed.
Interior racks shall be supplied and maintained in usable condition by the Town
for that purpose.
All exterior frames shall be supplied by the Contractor and the Town shall be
responsible for installation and maintenance of the frames. The exterior frames
become the property of the Town upon receipt.
The Town will provide a locked cupboard in the bus garage for the purpose of
storing the advertising cards and signs used by the Contractor.
No other advertisements shall be placed in, upon or about the buses except
those of the Contractor. The Town may, however, place its notices to the
public, providing such notices shall not interfere with the space hereby granted
to the Contractor.
Any advertisements to be placed in or on the buses of the Town shall be of
moral and reputable character and the Contractor shall forthwith remove from
any bus any advertisement which the Town, in the reasonable exercise of its
discretion, desires removed.
The Contractor shah indemnify and save the Town harmless against any and all
claims for damages and from all liability, loss and expenses arising from or
caused by any alleged libellous or obscene advertisement or notice or any
alleged copyrighted matter in amy advertisement or notice.
The consideration payable by the Contractor for the rights and privileges
hereby granted to it shall, for each contract year during the currency hereof,
be the greater of:
(a)
a sum equivalent to fifty-five percent of gross billings made by the
Contractor during the contract year with respect to advertising placed
pursuant to the right hereby granted; or
(b)
the guaranteed yearly sum in respect of the contract year set forth in
paragraph 8 hereof.
The consideration referred to in paragraph 6(b) shall be paid in equal monthly
instalments, and shall be paid on or before the 20th day of the 2nd succeeding
calendar month.
The Town shall have the right at all reasonable times to examine the books of
account of the Contractor through any representative named by it and shall be
given all facilities reasonably necessary to check the correctness of statements
of gross billings.
Within thirty days after the end of each contract year, the Contractor shall
have prepared a Yearly Statement for that year of the gross billings made by it
to which this Agreement refers, and comment as to its accuracy by a firm of
Chartered Accountants, and the Town shall have the right to inspect such
statement at any time. Any adjustment in the amount of the consideration
payable by the Contractor under paragraph 6 for that contract year shall be
made on or before the 20th day of June of the next contract year, or in the
case of the 1990 contract year, on or before June 20, 199].
8. The annual guaranteed sums are as follows:
Contract Year
Guaranteed Yearly Sum
1986 (May 1, 1986-April 30, ]987) $18,000.00
1987 (May 1, 1987-April 30, 1988) $19,000.00
1988 (May 1, 1988-April 30, 1989) $20,000.00
1989 (May 1, 1989-April 30, 1990) $21,000.00
1990 (May 1, 1990-April 30, 1991) $22,000.00
The term "gross billings" as used in this Agreement, means the gross billings
made by the Contractor to its client less:
(a)
commissions deducted by or paid or payable to advertising agencies with
respect to advertising placed with the Contractor through such agencies,
but in no case shall any commission be deducted in respect to advertising
obtained by the Contractor, or by a person or corporation in which the
Contractor is in any way financially interested, direct from advertisers;
(b)
prompt payment discount to clients if payment is made within ten days
after the date of invoice, not to exceed two per cent;
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(c)
(d)
bad debts deducted in accordance with and subject to the following pro-
vision, namely:
The Contractor shall have the right to write off as bad debts from its
gross billings any billings made to clients, payment whereof is then three
months or more in arrears; a statement of all such billings written off
shall be furnished to the Town at the time and together with payment of
the instalment in respect of the monthly billings, giving the respective
names and addresses of the clients and the respective amounts written
off; if collection of any or all of such unpaid billings shall be made by
the Contractor at any subsequent date, the Contractor shall forthwith pay
to the Town an amount equal to the applicable percentage of such amounts
collected under paragraph 6(a) unless paragraph 6(b) still applies;
net production costs on production included sales contracts and other
standard media industry discounts.
10.
If for any reason the bus service should be suspended for a continuous period
of seventy-two hours or longer, a pro rata reduction shall be made in comput-
ing the guaranteed yearly sum payable by the Contractor calculated on the
length of time the bus service is not in operation.
In the event that non-service continues beyond thirty days, consideration will
be given to further adiustments to the applicable guaranteed yearly sum, to
acknowledge the long-term business loss that would be experienced due to the
period of non-service.
11.
The Town shall notify the Contractor immediately upon any change in the fleet
and the effective date of such change. Should the operational fleet be
creased or reduced then the guaranteed yearly sum will be increased or
reduced accordingly.
12.
If default of any payment provided for in this Agreement shall continue for a
period of thirty days after written demand for payment shall have been duly
made upon the Contractor by mailing a registered letter to the Contractor at
700 - 150 Eglinton Avenue East, Toronto, Ontario, M4P 1ES, the Town may elect
to terminate this contract and remove all advertising cards from the buses
without further notice to the Contractor.
IN WITNESS WHEREOF the Parties hereto have executed this Agreement as of May
1st, 1986.
SIGNED, SEALED & DELIVERED
THE CORPORATION OF THE TOWN OF PICKERING
John E. Anderson, Mayor
Bruce Taylor, Clerk
JIM PATTISON INDUSTRIES LTD., carrying on
business as "TRANS AD"
R. D. Sinclair, President
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