Issue - meetings

Report ES15081

With the contract for advertising at bus stops expiring in July 2016, Transport for London (TfL) had given notice that it would not involve the Council in future contractual arrangements, TfL referring to legal advice indicating that the Council’s consent is not required as Highway Authority and they can exercise similar powers regarding bus shelters through their Transport Authority status. The Council was seeking legal advice on this as it could no longer receive income from the activity. In the meantime TfL had let an advertising contract, including advertising on bus shelters, to JC Decaux. 

The contract with Clear Channel on free-standing poster sites would also expire in July 2016 and approval was sought to tender as a concession contract for this activity, the anticipated contract value being approximately £1.3m  (if let for another 15 year term - an initial 10 year agreement with an option to extend for 5 years).

It was also proposed that officers separately tender a concession contract to identify and develop new advertising opportunities. This would comprise a five agreement with an option to extend for five years to identify and implement new sites not covered by the free-standing contract. This could involve an individual, advertising agency, or company identifying new opportunities and bringing them to fruition. 

In discussion, further background was provided on the contract for advertising at bus stops and the reason for the Council seeking legal advice. It was suggested that TfL should allow the Council to go through a consultation process and as Planning Authority it was understood that the Council could object to a bus shelter.

With reference to legal advice, the Deputy Leader suggested a cost sharing approach with other boroughs facing the same position. The Leader supported this and offered to raise the matter at London Councils. In his capacity the Deputy Leader also offered to do the same. Members were advised that some boroughs received no income from advertising at bus stops - the position at L B Bromley was possibly unique. The Leader asked to be informed of the position when known.

For the contract to develop new advertising opportunities, technological possibilities such as text messaging were suggested and policy might need to be developed in this area.

Members agreed the recommendations, the Leader looking to see that any possibility of cost sharing for legal advice is explored further, including the viability of such an approach.

 RESOLVED that:

(1)  the proposed tender activity in respect of the existing (free-standing) advertising sites be agreed with the new arrangements commencing on expiry of the current contract;

(2)  officers separately tender a contract to identify and develop additional new income generating advertising options / sites; and

(3)  TfL’s position regarding expiry of the bus shelter adverting contract be noted and officers be supported in seeking Counsel’s opinion in challenging TfL’s position.

Report ES15081

With the contract for advertising at bus stops expiring in July 2016, Transport for London (TfL) had given notice that it would not involve the Council in future contractual arrangements, TfL referring to legal advice indicating that the Council’s consent is not required as Highway Authority and they can exercise similar powers regarding bus shelters through their Transport Authority status. The Council was seeking legal advice on this as it could no longer receive income from the activity. In the meantime TfL had let an advertising contract, including advertising on bus shelters, to JC Decaux. 

The contract with Clear Channel on free-standing poster sites would also expire in July 2016 and approval was sought to tender as a concession contract for this activity, the anticipated contract value being approximately £1.3m  (if let for another 15 year term - an initial 10 year agreement with an option to extend for 5 years).

It was also proposed that officers separately tender a concession contract to identify and develop new advertising opportunities. This would comprise a five agreement with an option to extend for five years to identify and implement new sites not covered by the free-standing contract. This could involve an individual, advertising agency, or company identifying new opportunities and bringing them to fruition. 

In response to a question from the Chairman with regard to developing new advertising opportunities it was suggested that there might be scope in considering opportunities presented by proximity sensors and text messaging. The Chairman commented that if new or innovative methods were proposed, there may be a need for the Council to develop new policies.

In regard to TfL’s notice of not involving the Council in contractual arrangements for advertising at bus stops, it was not possible yet to provide any update on legal advice that was being sought.

RESOLVED that the Executive be recommended to:

(1)  agree the proposed tender activity in respect of the existing (free-standing) advertising sites, so that the new arrangements can commence on expiry of the current contract;

(2)  agree that officers separately tender a contract to identify and develop additional new income generating advertising options/sites; and

(3)  note TfL’s position regarding expiry of the bus shelter adverting contract and support officers in seeking Counsel’s opinion in challenging TfL’s position.