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HomeMy WebLinkAboutTR 04/98 (2)70 REPORT TO COUNCIL FROM: Neil Killen DATE: October 20,1998. .tanager of Transportation REPORT NUMBER: TR 04.98 SUBJECT: Mediacom Transit Shelter Advertising Contract Extension RECOMMENDATION: WHEREAS Pickering Council has previously approved Resolution #322/96 to provide Mediacom Inc. with exclusive rights to supply and install transit shelters with advertising for a term of seven (7) years ending on December 31, 2003; and WHEREAS the Corporation and Mediacom have previously agreed to accelerate the delivery schedule of shelters that were earmarked for 1999 through 2003 in order to respond to resident requests and provide five (5) custom shelters to complete the Town Centre transit terminal project; and WHEREAS Mediacom Inc. has met all contractual obligations concerning the installation of thirty -two (32) standard transit shelters and (5) custom shelters during the term of the current agreement; IT IS THEREFORE RECOMMENDED THAT Council of the Corporation of the Town of Pickering approve a by -law to amend the existing contract for an extended five (5) year term commencing on January I, 2004 and expiring on December 31, 2008. ORIGIN: Resolution of Council #322/96. AUTHORITY: By -law to amend the current contractual term with Mediacom Inc. FINANCIAL IMPLICATIONS: Mediacom has offered an amended guaranteed revenue schedule totaling $530,000 for the ten (10) year period commencing January 1, 1999 through December 31, 2008. Minimum annual guaranteed payments to the Town will be paid in advance in accordance with the following schedule: Current Contract Tenn: Minimum guarantee due January 1, 1999 ... ............................... $50,000 Minimum guarantee due January 1, 2000 ... ............................... $50,000 Minimum guarantee due January 1, 2001 ... ............................... $50,000 Minimum guarantee due January 1, 2002 ... ............................... $50,000 Minimum guarantee due January 1, 2003 ... ............................... $50,000 Extended Contract Term_: Minimum guarantee due January I, 2004 .... ............................... $52,000 Minimum guarantee due January 1, 2005 ... ............................... $54,000 Minimum guarantee due January I, 2006 ... ............................... S56,000 Minimum guarantee due January I, 2007 ... ............................... $58,000 Minimum guarantee due January 1, 2008 ' ... ............................... $60,000 Report to Council' TR 04.98 Date: October 20, 1998. Subject: Mediacom Transit Shelter Advertising Contract Extension Page 21 EXECUTIVE SUMMARY: Mediacom has supplied the Town of Pickering with a total of thirty seven (37) transit shelters since the current contact began on June 1, 1996. A total of thirty two (32) shelters were installed in the first year of the contract primarily along the Kingston Road corridor as replacements for Go Transit shelters. The current contract provided for seven (7) additional shelters to be installed over the course of the seven (7) year contract upon the written request of the Town. The Town agreed to the installation of five (5) custom shelters in lieu of seven (7) standard shelters in order to maintain a higher standard for shelter design in the area of the new Pickering Town Centre terminal. Mediacom has now met all contractual obligations concerning the supply and installation of transit shelters during the term of the current agreement; The Department of Transportation continues to receive requests from residents for additional transit shelters at various bus stop locations throughout the Town. Under the terns of the existing contract, no additional shelters will be provided prior to the expiration of the agreement on December 31, 2003. In order to meet the demand for additional shelters in a timely fashion, Pickering Transit requested that Mediacom review our current agreement and provide a proposal that would allow the Town to receive an additional quantity of shelters in order to meet existing and future demand. Mediacom has responded with a new proposal that would extend the existing agreement for a further period of five (5) years commencing on January I, 2004 and expiring on December 31, 2008. The amended agreement would provide the Town with access to an additional forty (40) shelters to be installed at a rate of five (5) shelters per year commencing in 1999 through 2006. In response to urgent requests that have been received, Pickering Transit has made arrangements with Mediacom to install three (3) of the five (5) shelters earmarked for 1999 prior to the end of 1998 pending acceptance of the proposed contract amendments. BACKGROUND: The principle items contained in the amended contract proposal with Mcdiacom include: I. The amended contract will be for an additional five (5) year term commencing upon the expiry of our existing contact on January 1, 2004 and expire on December 31, 2008. 2. Mediacom proposes to install an additional forty (40) transit shelters at locations agreeable to The Town and Mcdiacom at a rate of five (5) shelters per year commencing in 1999 through 2006. 3. To accommodate urgent requests for new shelters, Mediacom will permit the five (5) shelters or a portion thereof, earmarked for installation in 1999 to be installed in 1998. 4. For the five (5) year extended contractual period commencing January I, 2004, Mediacon, will pay the Town minimum annual payments as set out in the financial consideration portion of this report. in addition to these amounts, additional payments will be calculated and paid based on 20% of net revenues in excess of the minimum payment as set out in section 17.2 of the current agreement. 5. Mcdiacom proposes to ensure that a map display case is installed and maintained in a state of good repair in all transit shelters installed by Mcdiacom. 6. Medincom agrees to include the removal of snow at shelters at the time of routine maintenance. In periods of heavy snowfall, Mediacom will undertake to ensure the shelters t � , are clear from snow. y,N 7, All terms and conditions of the current contract extend to the new contract period. r��x Report to Council TR 04.98 Date: October 20,1998. (� 7Oubject: Madlacom Transit Shelter Advertising Contract Extension Page 3 "ATTACHMENTS :. 1, Contract Amendment Proposal from Mcdiacom Inc. 2. Current Transit Shelter Contract with Mediacom Inc. THE CORPORATION OF! F(E TOWN OF PICKERING 73 i, C BY-LAW NO Being a by -law to amend the current contract for transit shelter installations, advertising and maintenance with Mediacom Inc. for an extended five (5) year exclusive tern commencing on January 1, 2004 and expiring on December 31, 2008, II WHEREAS Pickering Council has previously approved Resolution #322/96 to provide Mediacom Inc. with exclusive rights to supply and install transit shelters with advertising for a term of seven (7) years ending on December 31, 2003; and WHEREAS Mediacom Inc, has met all contractual obligations concerning the supply of thirty - two (32) trvtsit standard shelters and (5) custom shelters during the term of the current agreement; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF PICKERINO HEREBY ENACTS AS FOLLOWS: I. To amend the existing contract for an extended five (5) year term commencing on January 1, 2004 and expiring on December 31, 2008. i BY -LAW read a first, second and third time and finally passed this 2nd day of November. 1998. MEDYA,COM1 ATrACHWi ro NT III 7 ieptember 15, 1998 Pickering Transit 2570 Tillings Road Pickering, Ontario L1V 2P8 Attention: Mr. Neil Killen, Manager of Transportation Re: Transit Shelters with Adverthing CGatraet Amendment As you are aware with the completion of the transit terminal project this summer Mediacom has met all of the contractual obligation of the current agreement with respect to shelter installation. Mediacom has now installed 32 transit shelters with advertising caisson within the municipality, and 5 custom shelters at 6e terminal. The five custom shelters were installed in lieu of 7 standard shelters required under the contract. Under the terns of the existing contract, no additional shelters will be built prior to the expiration of the agreement on December 31, 2003. Pickering Transit continues to receive requests from' the public for shelters. To accommodate new requests for shelters Mediacom proposes to amend the term of agreement that will result in a extension period of 5 years from the extended tens of the existing agreement. In consideration of the extended term to commence on January I, 2004 and expire on December 31, 2008 Mediacom proposes the following enhancements. 1. Mediacom proposes to install an additional 40 transit shelters, to be installed at a rate of 5 per year commencing in 1999 through 2006. (The 1999 installation or a portion thereof, can be accelerated for immediate installation if outstanding requests need to be addressed.) Mediacom reserves the right to refuse a location deemed unacceptable for advertising purposes by Mediacom, however, Mediacom will agree to the installation of an all glass transit shelter in exchange for a shelter with advertising at a location if required by Pickering Transit. 2. For the 5 year period commencing January I, 2004, Mediacom will pay the Town a minimum annual payment in accordance with the following schedule: Minimum guarantee due January 1, 2004 ........ ............................... $52,000 Minimum guarantee due January 1, 2005 ........ ............................... $54,000 Minimum guarantee due January 1, 2006 ........ ............................... $56,000 Minimum guarantee due January 1, 2007 ........ ............................... $58,000 Minimum guarantee due January I, 2008 ........ ............................... $60,000 In addition to the amounts set out above, additional payment will be calculated and paid based on the same terms and condition as set out in section 17.2 of the current agreement. 5 .2. 3. Mediacom proposes to ensure that a map display case is installed and maintained in a state of good repair in all transit shelters installed by Mediacom. 4. Mediacom agrees to include the removal of snow at the shelters as a maintenance enhancement to be removed from within the shelters at the time of said routine maintenance. In periods of heavy snowfall, Mediacom will undertake to ensure the shelters are clear from snow. 5. All other terms and conditions as current are extended to the new contract period. As you are aware, Mediacom pays an annual guaranteed payment to the Town on January 1 st, and on or before March 31st of each year will pay to the Town the amount by which 20% of the net revenues exceed the guaranteed payment for the payment period. Therefore more advertising opportunities means more potential revenue for the Town. Mediacom has enjoyed an excellent business relationship with Pickering Transit, and we thank you for the opportunity to assist in the Town of Pickering transit requirements. Please don't hesitate to contact me, should any clarification of our proposal be required. Sincerely, Darcy Clark Legislative & Community Develonment Mannaer F +_ (hereinafter referred to as the "Town") -and- MEDtA- COM IS (hereinafter referred to as "Mediacom ") W�ITN,�TOREPO�# R�'0 6 3 "Gl 0 Q�t pN c OF THE FIRST PART OF THE SECOND PART WHEREAS the Town desires to provide transit passenger shelters with advertising within the geographic boundaries of the Town of Pickering; AND WHEREAS Medlacom is able and willing to supply and transit passenger shelters with advertising caissons, and to maintain transit passenger shelters for the Town; AND WHEREAS the Town is willing to permit Med(acom to install transit passenger shelters with advertising caissons on preperty under its jurisdiction and on properties within its geographic boundaries. NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the covenants hereinafter contained and the sum of TWO DOLLARS ($2.00) of the lawful money of Canada, now paid by each of the parties hereto to each of the other parties hereto (the receipt whereof is hereby acknowledged), the parties hereto hereby covenant, promise and agree with each other as follows: 1.1 The words "shelter" or "transit passenger shelter" means a structure erected at a Pickering bus/transit slot), within the Town of Pickering's geographic limits for the convenience of transit passengers. 1.2 The :words "advertising caisson" or "caisson" means a box containing two advertising faces, lighting fixtures and electrical appurtenances. 1.3 . The words "advertising face" means a location wherein one sheet of advertising copy may be displayed. .2. TERM OF THIS AGREEMENT The parties agree that the term of this agreement shall be for a period commencing on 'the date'of execution of this agreement and ending on December 31, 2001 subject to. the right of Mediacom (upon written notice to the Town prior to October .1, 2001), to extend the term of this agreement for a further period of 2 years on the same terms and conditions as contained herein, save and except for any further right of"renetval,thereafter. Merllacom agrees to design, manufacture, supply, install and maintain transit passenger shelters with, advertising within the Town's geographic boundaries as set tw4:lh this Agreement (the 'contract work'), to the satisfaction 'of the Town's S }614 i'91,�v1f f .4 4. NEW -MM T ue Thirty-two (32) shelters will be installed by Mediacom in the first year as hereinafter set out, and thereafter, seven (7) shelters will be installed by Mediacom during the balance of the term of the contract, and upon the written request of the Town, such that a total of thirty nine (39) shelters will have been installed by Mediacom on or before December 31, 2002. The parties agree that twenty two (22) of the shelters will be installed prior to June 1, 1997 and ten (10) additional shelters will be installed prior to September, 1997. 5. 'NEW SHELTER D SI .N '4.1 Any Sheller to be constructed by Mediacom under this agreement shall be a "Daytech Type" shelter or equivalent. 4.2 Unless otherwise approved in writing by both the Town and Mediacom, the new shelters to be provided by Mediacom will be constructed as follows; approximately 4'h' wide, 10W long and 7V.' high; 10 mm tempered glass panels on three sides with an allowance for a doorway approximately 4'h' wide; an advertising caisson on the far side of the shelter; • two illuminated advertising faces measuring approximately 47" x 68 "; domed roof; transit map display cases where applicable (as determined in writing by the Town's Executive Director of Operations). 6. SITE SELECTION 6.1 The actual site selection of shelter positioning for the transit passenger shelters to be installed will be determined by and must be approved of by the Town's Executive Director of Operations (in consultation with the Chairman of the Town's Transit Committee) and Mediacom. Prior to undertaking any installations of transit passenger shelters, the Town will supply Mediacom with a list of proposed locations of transit passenger shelters for the first s calendar year of this agreement and subsequently for each calendar year thereafter throughout the term of this agreement and any renewal thereof. 6.2 The Town agrees to allow shelters with advertising to be placed at those t locations which have an existing transit passenger shelter, all as more particularly set out In Schedule 'A' attached hereto and forming part of this agreement. Mediacom agrees to assume the cost and responsibility for moving the existing shelter set out in Schedule A to another location .` provided any such relocation is approved by both the Town and Mediarnm. 6.3 ` `The, Town . agrees that notwithstanding Clause 4,'Medlacom reserves` the right to refuse to install advertising caisson in seven of the shelters refereed to r W In Clause 4, If in Its opinion, the advertising faces will not be of any value to Medlacom. 7 �xj d 7g 7. CONCRETE PADS 7.1 Concrete pads may not always be required for the installation of shelters, however, where the installation of concrete pads Is jointly deemed to be necessary by Mediacom and the Town, for the purposes of keeping the shelter level and secured to the ground, Mediacom agrees to be responsible for supplying the concrete pad at no cost to the Town. Notwithstanding the foregoing, the Town agrees to pay the cost of installing the concrete pads at the existing 17 locations as set out on Schedule A to this agreement. 8. 9. 7.2 The parties agrees that should the Town wilfully cause any undue delays in construction after construction of a shelter pad has commenced, with the prior consent of the Town; and should the Town deliver written instructions to Mediacom not to proceed with the installation of a shelter on a concrete pad prepared by Mediacom, the Town shall assume full responsibility for the shelter pad and Mediacom shall be released from its responsibility to indemnify and save the Town harmless with respect to such location. .Mediacom will be responsible to work with the Hydro authorities to supply and connect underground electrical power to all transit passenger shelters constructed by Mediacom and to pay all Hydro charges for such connections. Mediacom agrees .to be responsible for the cost of power consumed in Illuminating the advertising faces throughout the term of this agreement and any renewal thereof. 9.1 Mediacom agrees to be responsible for maintaining the Mediacom -owned together with all Town-owned shelters, in good repair and appearance to the satisfaction of the Town's Executive Director of Operations. This will include the complete washing of all glass and metal frames at least twice monthly or more frequently if required by the Town, repainting as required plus the replacement of burned out lights, removal of graffiti, stickers, posters and the like and repair and replacement of damaged or broken parts and the supply of replacement parts as may be deemed necessary by the Town. Litter and snow removal will be performed by Mediacom at time of normal maintenance at no cost to the Town. In carrying out its maintenance or cleaning duties as aforesaid, Medfacom will not permit, create, or leave any shelter in a dangerous or hazardous condition, including Icy conditions that may be caused by cleaning operations in winter months. Further, during any such maintenance operations, all employees, contractors, or agents of Mediacom will conduct themselves so as not to create any traffic hazards and will take all appropriate safety precautions, including the safe parking of vehicles. The Town agrees to remove snow from inside the transit passenger shelters covered under this Agreement when the Town is engaged in snow removal from its bus stops if the work has not already been completed by Mediacom. 9.2 The Town may provide written notification to Mediacom that any shelter requires regular maintenance and Mediacom shall, as soon as is reasonably possible and no later than 48 hours after the receipt of such notice, undertake the maintenance required at no cost to the Town. t� F t { 78 9.3 The Town may provide written notification to Mediacom that a shelter in the Town requires emergency maintenance if its condition is such that it renders It a serious danger to the public as determined solely by the Town's Executive Director of Operations. In such an event, Mediacom shall, as soon as it is reasonably possible, and within no later than 24 hours after the giving of notice, repair, maintain or make safe the shelter at Mediacom's own expense and to the satisfaction of the Town. 10, VANDALISM 10.1 In the event that a shelter at any specific location has been subjected to repeated damage due to vandalism, Mediacom may, at its own expense, remove or relocate the shelter to an alternative, location approved by both the Town and Mediacom. Upon relocating any shelter, Mediacom shall restore the previous site to its original condition including removal of any concrete pad at its sole expense and at no cost to the Town. I i 10.2 For the purpose of this section, repeated damage due to vandalism shall mean four (4) or more instances of damage within a twenty four (24) month period I wherein the total cost of repairs exceeds TWO THOUSAND DOLLARS ,(52,000.00) on each occurrence respectively. i 10.3 If the shelter has been subjected to repeated damage due to vandalism and the Town does not agree to its relocation by Mediacom the Town agrees to be responsible to pay the costs of repair arising from the 5th act of vandalism and all subsequent damages due to vandalism arising thereafter at that location. 11. ADVERTISING 11.1 As a member of the Outdoor Advertising Association of Canada, Mediacom shall abide by the Canadian Code of Advertising Standards as amended from time to time. As well the parties agree that no advertisement placed on any shelter shall advertise, promote or mention in any way: cigarettes, cigars or any tobacco product liquor, wine, beer or any other alcoholic beverage political candidate(s) during a local Municipal Election offensive references or racial matters religious advertising which promotes a specific ideology, ethnic point of view, policy or action which in the opinion of the Town might be deemed prejudicial to other religious groups or offensive to users of the transit system. 11.2 The Town reserves the right to require, by resolution of Council, the Immediate removal of any particular advertisement, or of a given advertisement at a specific location within the Town's geographic limits, if in its opinion the advertisement or the installation at a certain place is offensive to the public or creates a safety hazard. Mediacom shall forthwith carry out the removal of the advertisement within 48 hours of receipt of written notification of the Town Council's resolution requesting same. 11.3 The Town and Mediacom agree that despite any of the terms and conditions of this agreement, Mediacom shall be permitted to install advertising enhancing product designs on transit passenger shelters located within the Town's geographic limits, subject to the prior written approval of the Town's Executive Director of Operations. i so s t -- j 11.4 For the purposes of this Agreement, the term "advertising enhancing product designs" shall include, but is not limited to: (a) interactive talking advertising features; (b) three dimensional advertising displays; and f (c) advertising space extensions. 11.5 The Town has the right to require that the installation of advertising enhancing product designs be in a manner other than as proposed by Mediacom, including the direction that they be placed or positioned on the transit passenger shelter to provide for the safety of pedestrians and the safe movement of vehicles. 11.6 The Town has the right to prohibit the installation of or to require the Immediate removal of any advertisement used in association with an advertisement enhancing product design or the removal or adjustment of any particular type of advertising enhancing product design at specified locations if, in the opinion of the Town, the advertisement or the installation of the advertising enhancing product design is inappropriate. 11.7 The Town agrees that it will not authorize the placement or erection of benches for use by the general public at a shelter which unreasonably obstructs or inter ,gyres with the visibility or effectiveness of the advertising on such shelter as determined solely by the Town's Executive Director of Operations, acting reasonably. 11.8 Mediacom agrees that any advertisements regarding candidates for local Municipal elections must be in compliance with the applicable legislation. ICIIIIIII all .14 . r . 12.1 Mediacom will make available to the Town any advertising faces on the shelters covered under this agreement which are available and unsold during any month, for free advertising use by the Town. 12.2 All public service messages shall be subject to approval by Mediacom's Creative Review Board and will only be posted on advertising faces available pursuant to the terms herein. The Town will be responsible for the cost of designing, producing and supplying to Mediacom their oven public service message posters. Mediacom will be responsible for installing and removing the posters from the caissons. 13.1 Medfacom shall be responsible for any and all damages, or claims for damages for injuries or accidents done or caused by it or its employees, or resulting from the prosecution of the contract work, or any of its operations, or caused by reason of the existence or location or condition of the contract work, or of any materials, plant or machinery used thereon or therein, or which may happen by reason thereof, or arising from any failure, neglect or omission on Its part, or on the part of any of Its employees, to do or perform any or all of the several ads or things required to be done by it or them under and by this agreement and Mediacom covenants and agrees to hold the Town harmless and indemnified for all such damages and claims for damage; and in case of Mediacom's failure, neglect or omission to observe and perform faithfully and strictly, all the provisions of this agreement, the Town may, ten .(10) days after having given notice in writing of such failure, neglect or l omission, take such steps, procure such material, teams, trucks and workmen, i and do such work or things as he may deem advisable toward carrying out i ter � f 811 6 i .. and enforcing the same and the Town may, to the extent of the costs thereof, recover such costs in and Court of competent jurisdiction as a debt due and owing by Mediacom to the Town. 13.2 Medlacom covenants and agrees to from time to time and it all limes hereafter to save, defend and keep harmless and fully indemnify the Town and each of its officers, servants or agents, from and against all actions, suits, claims, liens and demands which may be brought against or made upon the Town, its officers, servants, or agents, and of, from and against all losses, costs, charges, damages and expenses which may be paid, sustained or incurred by the Town, its officers, servants by reason of, or on account of or in consequence of the execution and performance of the contract work, or the non - execution or imperfect execution of the contract work or the supply or non - supply of the contract work, or otherwise, by reason of or arising out of the occupancy of parts of public highways hereby granted and Mediacom will pay to the Town or any of its officers, servants or agents, on demand, as the case may be, all amounts and damages which may be paid, sustained or Incurred by the Town or such officers, servants or agents in consequence of any such actions, suits, claims, liens, executions or demands and all monies paid or payable by the Town or such officers, servants, or agents in settlement or in discharge thereof or on account, thereof, and [hat in default of such payment all loss, costs, charges, damages and expenses and all monies so paid or payable by the Town or such officers, servants, or agents may be recovered from Medtacom in any court of competent jurisdiction as monies paid at Mediacom's request and Mediacom hereby authorizes and empowers the Town or thereafter its solicitors for the time being to settle or compromise as the Town or its solicitors may deem expedient, any actions, suits, claims, liens, executions or demands which may be brought against or made upon the Town, their officers, servants, or agents by reason of, or on account of or in performance of this agreement and the non - execution or imperfect, execution of the contract work and the supply or non - supply of the contract work or otherwise by reason of or arising out of or as a result of this agreement or the permission to occupy parts of the highways hereby given Including any claims for damages arising from or caused by any alleged libellous or obscene advertisement or notice or any alleged copyrighted matter in any advertisement or notice placed in any of the Town's transit shelters by Mediacom. . 13.3 Mediacom shall procure and maintain for the term of this agreement Liability Insurance relative to each shelter installed and will identify the Town as a named insured, equal to or in excess of the following minimum requirements and shall file with the Town a Certificate of Liability Insurance evidencing such requirements. The Liability Insurance shall: (i) have a limit of liability of not less than ONE MILLION DOLLARS ($1,000,000.00) for any one occurrence and the amount of such liability insurance shall be increased at the request of the Town based on reasonable grounds acceptable to Mediacom; (ii) be Comprehensive Liability Insurance covering all operations and liability assumed under this agreement; (iii) not contain any exclusive or limitations in respect of shoring, underpinning, razing or demolition of any building or structure, collapse of any structure or subsidence of any property sinicture or land from any cause. 82 14. EXCLURyE&GHU 14.1 edtacom shallhave the exclusive.rl hts'to dis ,la 'advertisin 'Iman or all ftlietidnsit shelters erected `and covered by. this= agreement; , Tfii• Town! trMedfawm will be its excluslye'supplfer of•transit "•`'shelters with ' jl'� As ,m tc.1 during •.ttie confrad ;'period:4'' O�shelters`constrtT(ed by' ;hall be removed to rmit the.insta la ano e_r. onlpany's`a With or without advertising during the terof thc contract: 14.2 Notwithstanding Clause 14.1 herein, Mediacom agrees to allow the Toronto Area Transit Operating Authority (' TATOA') to maintain its corporate logo, in ! the form of a stylized green 'GO', on each shelter located within the i geographic limits of the Town. In the event that TATOA ceases to use any of the shelters to board passengers, TATOA shall be entitled to remove its corporate logo from such shelter(s) no longer used by it to board passengers. 15. ASSISTANCE The Town agrees to give Mediacom reasonable support and assistance in order to complete the installation of new shelters as mutually agreed upon. Such assistance will In but it is not limited to, assisting in preventing obstacles such as garbage cans, newspaper boxes and benches, interfering between the line of vision of pedestrians and motorists to [lie advertising faces. 16. ENCUMBRANCE OF TIT F TO SH jM Should Mediacom be unable to perform its duties under this Agreement or become insolvent, bankrupt or make an authorized assignment or compromise to its creditors, or encumber or allow to be encumbered its title to the shelters erected under this agreement by way of security, lien, execution or otherwise, such action or occurrence shall be deemed to be a breach and a contravention of this agreement by Mediacom, and the Town shall have the right to immediately terminate this agreement. 17. FINANCIAL GUA ANT 17.1 Mediacom will pay the Town a minimum annual payment in accordance with the following schedule: (1) For the period commencing on January 1, 1997 and ending on December 31, 1997 the sum of Forty Thousand Dollars ($40,000) payable on January i, 1997. ('Payment Period Year I% (il) And thereafter, for the period commencing on the 1st day of January, 1998 and ending on December 31, 1998, the sum of Forty Two Thousand Five Hundred ($42,500) payable on January 1, 1998. ('Payment Period Year II'); (iii) And thereafter for the period commencing on the 1st day of January 1999 and ending on December 31, 1999, the sum of Forty Five Thousand ($45,000) payable on January 1, 1999. ('Payment Period Year III% (iv) And thereafter for the period commencing on the 1st day of January 2000 and ending on December 31, 2000, the sum of Forty Seven Thousand Five Hundred Dollars ($47,500) payable . on January 1, 2000. ('Payment Period Year IV*); Councillor Brenner - 83 e (v) And thereafter for the period commending on the 1st day of January, 1001 and ending on December 31, 2001, the sum of Fifty Thousand Dollars ($50,000) payable on January 1, 2001. ('Payment Period Year V'); (vi) And thereafter, provided the term of this agreement has been renewed in accordance with the provisions of Clause 2 herein, for the period commencing on the 1st day of January, 2,002 and ending on December 31, 2002, the sum of Fifty Thousand Dollars ($50,000) payable on January 1, 2002. ('Payment Period Renewal Year I'); (vii)And thereafter provided the term of this agreement has been renewed in dccurdance with the provisions of Clause 2 herein, for the period commencing on the 1st day of January 2003, and ending on December 31, 2003, the sum of Fifty Thousand Dollars ($50,000) payable on January 1, 2003. ('Payment Period Renewal Year II'). 17.2 In addition to the amounts set out in Clause 17.1 above, at the end of each payment period as defined in Clause 17.1 hereof ('Payment Periods') Mediacom will calculate its net revenue from advertising from the transit passenger shelters during each respective Payment Period Year. Net revenue Is defined as gross revenue less agency commissions and discounts (which discounts will not exceed 25% of gross revenues). If 20% of net revenues for the payment period is greater than the minimum payment for the applicable payment period year as set out in Clause 17.1 herein, Mediacom will pay to the Town the amount by which 20% of net revenues exceed the minimum payment ( "Excess Revenue ") in addition to the minimum annual payment for such payment period. 17.3 Excess Revenues owing for each payment period year as determined in accordance with the above -noted formula, will be paid within the first ninety (90) days of the commencement of the next calendar year immediately following each respective payment period year as follows: Payment Period Year I • payment due on or before March 31, 1998 Payment Period Year 11 payment due on or before March 31, 1999 Payment Period Year III payment due on or before March 31, 2000 Payment Period Year IV payment due on or before March 31, 2001 Payment Period Year V payment due on or before March 31, 2002 Payment Period Renewal Year I payment due on or before March 31, 2003 Payment Period Renewal Year II payment due on or before March 31, 2004 17.4 Mediacom agrees upon request by the Town, to provide the Town with complete access to its books, records and accounts pertaining to the shelters, at the end of each payment period, in order to allow the Town to confirm Mediacom's calculation of net revenue and Excess Revenue for each payment period year. 84 18. ICI 18.1 The Town agrees to neither charge nor claim from Mediacom, whether directly or indirectly, any occupation fees, rents, royalties, permit or licence fees, in conjunction with the shelters and the advertising occurring within the shelters, throughout the term of this agreement or any renewal term. 18.2 Mediacom agrees to pay all applicable Goods and Services Taxes to the Town in addition to the amounts set out in Clauses 17.1 and 17.2 above. 19. TITI TO SHELTERS Mediacom acknowledges that the Town is purchasing the shelters from the Toronto Area Transit Operating Authority, as set out in Schedule A to this agreement. 20. REMEDY FOR BREACH In the event of this Agreement being contravened by (i) Mediacom, the Town may; or (ii) by Town, then Mediacom may; at its or their option, as the case may be, terminate the Agreement by giving the offending party written notice of the violation/breach and if the offending party fails to remedy the violation/breach within ninety (90) days of the date of the notice, this agreement may, at the option of the party giving the notice be terminated. Notwithstanding the termination of the agreement by any party for any reason whatsoever, the payment of all outstanding amounts owing to the Town to the date of such termination (pro-rated to the date of such termination), shall become due and payable forthwith to the Town. Any notice or other communications to be given by any party hereunder to the other shall be in writing. and shall be given or made by delivering same by hand or fax transmission (in which event it will be deemed received on the date of delivery) or facsimile transmission as the case may be or by mailing same in a sealed envelope by prepaid registered mail, (in which case it shall be deemed received two (2) days after mailing) addressed to the party to whom notice is directed at the address set out below or to such alternative address as may from time to time be designated by notice, in writing, given in the same manner provided for in this section; TO THE TOWN The Town of the Town of Pickering Pickering Civic Centre One The Esplanade PICKERING, Ontario L1V 6K7 Attention: Town Clerk, (Fax # 905. 420-0515) TO MEDIACOM Mediacom Inc. 377 Homer Avenue ETOBICOKE, Ontario M8W lZ6 Attn:: Blair Murdoch Sr., V.P. Asset Development (Fax #416.255 -2063) io 22. DELAY IN PERFORMANf F Mediacom shall not be liable for any delay in performance of its duties under this agreement due to causes beyond its control, including, but not limited to, fires, floods, strikes, shortage of materials, delays in carriers, acts of God or the government ior the failure to obtain delivery of equipment or parts thereof. 23. ASSI .NM NT Mediacom or any successor thereto shall not assign this Agreement without first obtaining written consent of the Town, consent shall not be unreasonably withheld. 24. ENTIRE A .R •FM •NT This Agreement constitutes the entire agreement between the parties to this Agreement and supersedes any prior agreements and understandings, oral or written, between such parties with respect to the subject matter hereof. 25. EXECUTION This Agreement may be simultaneously executed in several counterparts, each of which when so executed shall be deemed to be an original and such counterparts together shall constitute, but one and the same instrument. 26. INTERPRETATION In constituting this Agreement, words in the singular shall include the plural and vice versa and words importing the masculine shall include the feminine, and the neuter and vice versa, and words importing persons shall include Towns and vice versa. IN WITNESS WHEREOF the said Parties hereto have hereunto affixed their respective Town Seals attested by the hands of their respective proper officers in that behalf duly authorized. THE CORPORATION OF THE TOWN OF PICKERING G Mayor AC, Clerk MEDIACOM INC. ' { Senior Vice President • Central Region a „u Ot ME Northside of Kingston Road at Rougemount Drive - Pickering 91.12 Southside of Kingston Road at Rosebank Road - Pickering 88.20 Northside of Kingston Road at Rosebank Road - Pickering 85.13 Southside of Kingston Road at Whites Road - Pickering F19.01 Northside of Kingston Road at Whites Road - Pickering 91.11 Southside of Kingston Road at Dunbarton School - Pickering 91.02• Southside of Kingston Road at Fairport Road - Pickering 83.01 Northside of Kingston Road at Fairport Road - Pickering 91.06 Northside of Kingston Road at Dixie Road West - Pickering 87.01 Southside of Kingston Road at Walnut Lane West - Pickering 89.08 Northside of Kingston Road at Walnut Lane West - Pickering 89.07 Southside of Kingston Road at Glendale Road West - Pickering 91 -08 Northside of Kingston Road at Glendale Road West - Pickering 89.06 Southside of Kingston Road at Glennana Road West - Pickering 91 -07 Northside of Kingston Road at Glennana Road West - Pickering 82.75 Southside of Kingston Road at Denmar Road - Pickering 79 -02 Northside of Kingston Road at Guild Road West - Pickering 87 -04