Los Angeies County One Gateway Plaza 213.gz2.2( MetropolitanTransportation Authority Los Angeles, CA 90012-2952 metro.net @ Metro EXECUTIVE MANAGEMENT AND AUDIT COMMITTEE JULY 21,2011 SUBJECT: USE OF MTA PROPERTY FOR COMMERCIAL ACTIVITIES ACTION: APPROVE REVISIONS TO THE USE OF MTA PROPERTY FOR COMMERCIAL ACTIVITIES POLICY RECOMMENDATION A. Approve revisions to the Use of MTA Property for Commercial Activities Policy ("Policy") as set forth in Attachments "A" to the Board Report. B. Delegate authority to approved future revisions to the Policy to the Chief Executive Officer. ISSUE The Board adopted the Use of MTA Property for Commercial Activities Policy ("Policy") on April 25, 2002. The Policy is being revised to update the process for selecting vendors at rail and bus facilities, to address the use of alcohol at Union Station and to update the policy to reflect current practices, references, definitions and standardized policy format. DISCUSSION The Use of LACMTA Property for Commercial Activities Policy (1) provide guidelines for the use of LACMTA property for commercial activities, (2) identify the type of commercial activities that may be conducted by non-LACMTA personnel or by the public and (3) establish criteria under which a permit or contract may be obtained. The policy requires that individuals or corporations conducting commercial activities, on LACMTA property, comply with the procedures and regulations contained in the Policy. The Policy also outlines the process that is to be used by staff to notify the public of the availability of commercial opportunities and the process for selecting and assigning available locations. The current policy provides that assignments are applied on a "first come, first served" basis for a limited period of time not to exceed one (j) year. The Policy is to be revised
Transcript
Los Angeies County One Gateway Plaza 213.gz2.2( Metropolitan Transportation Authority Los Angeles, CA 90012-2952 metro.net
@ Metro
EXECUTIVE MANAGEMENT AND AUDIT COMMITTEE JULY 21,2011
SUBJECT: USE OF MTA PROPERTY FOR COMMERCIAL ACTIVITIES
ACTION: APPROVE REVISIONS TO THE USE OF MTA PROPERTY FOR COMMERCIAL ACTIVITIES POLICY
RECOMMENDATION
A. Approve revisions to the Use of MTA Property for Commercial Activities Policy ("Policy") as set forth in Attachments "A" to the Board Report.
B. Delegate authority to approved future revisions to the Policy to the Chief Executive Officer.
ISSUE
The Board adopted the Use of MTA Property for Commercial Activities Policy ("Policy") on April 25, 2002. The Policy is being revised to update the process for selecting vendors at rail and bus facilities, to address the use of alcohol at Union Station and to update the policy to reflect current practices, references, definitions and standardized policy format.
DISCUSSION
The Use of LACMTA Property for Commercial Activities Policy (1) provide guidelines for the use of LACMTA property for commercial activities, (2) identify the type of commercial activities that may be conducted by non-LACMTA personnel or by the public and (3) establish criteria under which a permit or contract may be obtained. The policy requires that individuals or corporations conducting commercial activities, on LACMTA property, comply with the procedures and regulations contained in the Policy. The Policy also outlines the process that is to be used by staff to notify the public of the availability of commercial opportunities and the process for selecting and assigning available locations.
The current policy provides that assignments are applied on a "first come, first served" basis for a limited period of time not to exceed one (j) year. The Policy is to be revised
as set forth in Attachment "A" which sets out a process allowing for a Lottery to select the vendors that will be permitted to operate retail-vending carts at certain locations. This revision is required to address the issue of multiple vendors seeking permits for certain popular locations such as the Red Line Universal City and North Hollywood Stations. Under the current process is difficult to determine which vendor is in fact the "first" to submit their application and has resulted in conflicts between vendors and staff. The policy is also revised to permit the vendor to operate for a period of time not to exceed two (2) years or a longer period of time at the discretion of the Real Estate Department. The current one (1) year period does not permit the vendors sufficient time to establish their business at the station site and requires additional administrative time to implement the process by staff. The revisions also cover the sale or use of alcoholic beverages, except in designated areas approved by the Chief Executive Officer. This change is necessary to permit the use of alcoholic beverages at Union Station. These policy changes highlighted in Attachment "A" to this Board Report.
FINANCIAL IMPACT
No significant financial impact is anticipated due to the revisions to the Use of LACMTA Property for Commercial Activities Policy. The changes will permit efficient use of staff time in implementing the Policy.
ALTERNATIVES CONSIDERED
The changes to the policy governing the Use of LACMTA Property for Commercial Activities are believed to be necessary to ensure that LACMTA's operations, including the purchase of Union Station, continue to be conducted in a lawful fashion and to assure the selection of vendors to operate at MTA facilities is conducted in an equitable manner.
NEXT STEPS
Implementation of the revised Policy will be initiated in the fourth quarter of 201 1 to select vendors with contracts effective January 1, 2012. Existing vendor contracts were extended to December 31, 201 1 pending the adoption of the revised policy.
ATTACHMENTS
A. Use of LACMTA Property for Commercial Activities Policy redlined to show changes from original policy
Prepared by: Velma C. Marshall, Deputy Executive Officer - Real Estate
Use of LACMTA Property for Commercial Activities
Arthur T. Leahy V
Chief Executive Officer
Use of LACMTA Property for Commercial Activities Page 3
Los Angels County Metropolin Transportation Authority
@ Metro
GENERAL MANAGEMENT Deleted: S , =i_ - -- --- --- - Deleted. c e r t a ~ ~ Los Angefes County
Use of LACMTA Property for Commercial Activities Metropohtan Authority ("MA") properly may be used for c e r t a ~ ~
(GEN 47) commerc~al and non-commercial achvltles that may provlde revenue to
POLICY STATEMENT WA z-L = -- z=
- 7 a - - \ -- Deleted: The use of MTA properly for ..; --., <><'l>" C" - ' - ,,- 2 , " L _At--,2 M---L :c-s<zi 2'. 2 , - i i tkz l l . !tAC?i'll'.t! a- -Z 1> h e x : ~ commercial and ~on-commercial
~_@4[i~t:a biak ac4'-_--?2 -,. t::.x + .:l.l:-i - E L ~ I - ~ ~ ~ ~ : ; ~ Y ~ ~ ~ ~ bws:;t~:b : -3ubject to reasonable rules achxhes shall he authonzed only by wntten p e m t or contract signed by the
and regulations regarding time, place and manner- I X ~ L wl~s e ~ ~ ~ r ~ ~ ~ ~ e oFgs ~ F ' % G ~ P ~ I G , appropnate department head or acting departmen? head
\ _---- __ - - - Deleted: K
of :,RITA Property
. " which a p e d t or contract may be obtained that will enable the reauestor
Chief of SBU APPROVED: County Counsel ADOPTED: CEO
Effective Date:
Date of Last Review:
Deleted: or by the - -- - --- Ddeted: or non-commerc~al achvlhes after the effectwe date of tius whcv
- -
to use the property for one of the allowed purposes. This policy is necossary to preserve the facilities of MTA for their dedicated purpose, to provide for safe and efficient operation of the transit system and to further the e q t s b l e distribution of licenses and eontracta to the public for the allowable activities.¶ The purpose of this Policy is to establisb criteria for vending and concession facilities on MTA property. This Policy will be implemented to meet the following objectives.1 <#*enexate revenue to help o&et MTA's capital and operating expenses.7 <#>Increase transit ridership to reduce a i ~ quality impacts, energy consumption and traffic congestion.8 <#>Generate additional activity at stations that enhances use of the transit service and improves patron perception of safety and security.7 <#>Rovide sewices to transit patrons that will reduce tbe amount of travel needed to purchase goads and sewices.8 <#>Proride development and business ouuorhmities to the orivate sector.7
USE OF LACMTA PROPERTY FOR COMMERCIAL ACTNITIES JUNE 201 1 Page 1 of 6
I 1.1 Allowable Uses
Any authorized commercial activities must be compatible with the construction, operation, +
maintenance, security, safety and aesthetic treatment of the transit system as well as the surrounding community. Individuals or business entities, &&i.a_ by the issuance of a permit or contract pursuant to this policy, are granted limited use access to&.%CMTA1s~roperty for the purpose of engaging in allowable activities. Access will only be authorized when the safety of
( &A~'%lJl-empioyees and transit patrons can be assured, ingress and egress ofpatrons accommodated, and normal transportation services operated without disruption. The following are examples ofthe types of activities and services for which permits or contracts for limited use may be granted:
* Retail items such as jewelry, sundries and similar items
* Newsstands to sell newspapers, magazines, paperback books, candy, and related items
a Photography
* Mail collection boxes on a controlled basis at passenger station plazas
e Flower Stands
I Food Kiosks (food dispensed in closed or resealable containers)
I Deleted: POLICY IMPLEMENTATION , L - -- -- - - -
Formatted: Bullets and Numbenng
7- ---.- Deleted.. who -- .--- r____%- - -- d - -- Deleted: MTA's
..------- -- -." Delated:P
Deleted: MTA --- .d
Formatted: Bullets and Numbenng
Shoe Shine Stands
Self-service postal units
Automatic Teller Machines (ATMs)
Dry Cleaners Services (Drop off and Pick Up only)
* Film Development, (Drop off and Pick Up only)
1 1.2 Prohibited Use and Unauthorized Activities -
Sale or use of alcoholic beverages, tobacco products, ~ . C C F ~ LP dezimated as e:*\ + Formatted: Indent: Left 0.25", Tabs: 0.5", bst tab + Not at 0.25"
-:$>;& 2 W t v : - -- ----- 7
+ Formatted: Bullets and Numbering @ 5aie O f "*: 2 : d.+y* 2: L:: . G 5 z
a Sale of hot food items in the station areas (excluding the plaza level). ----- - 7 S~1e% 02 $'>'i,i - L - u - cL ;u;l;c:lii5 i I; r ewl'acit ikefispapeirs anag;zdzrra,es or (b- Formattad: Bullets and Numbering __- -__--______i
book3
USE OF LACMTA PROPERTY FOR COMMERCIAL ACTMTIES JUNE 201 1 Page 2 o f 6
,-.-- --
I . Other activities that are deemed by ,L "\C;"L 430 be incompatible (or unsafe) with the + ---- _-___ ~eleted: WA _ - _-__ ____ _ - construction operation, maintenance, security and aesthetic treatment of the transit Formatted: Indent: Left: 0.25",
Tabs: 0.5", List tab + Not at 0.25'' 2 system. -- --
c--- ---
Fonnsltted. Font: Bold ----.-- P - - \
-2
* :-i3-- W Q C E PL S SSA Fomatted: Body Text Indent i=_-i=~- ----?LC - Deleted: shall
2.1 Permittinp Process - .". -- & --. - ----- A-da---. Deleted: on 7-- ->-.- - . -&
LAChlTA-% i g determine the number of vending, concessions or other uses that may take place mleted. MTA _ ___ ̂ l_i -- &any ~ p e c i f i c ~ ~ ~ ~ ~ & l o c a t i o n at any $ h e . The availability a~ ld aise of any&k$"zC >I-& groperty for commercial activity is at the sole discretion of&,&{:PfIT64.
* hiebed: r n ~ Selection of individuals or business entities to occupy space in s e l e c t e d ~ P , ~ > I ~ ~ ~ transit ~ e ~ e ~ e d : - P - a -. ----- facilities may be on the basis of either of the following processes:
D~I%"~:~EA _ _ _ _. -- - e Jssuance of a Rewest for Pro~osal for commercial activities at selected MTA vroverties- Deleted: MTA - - - ----=---- =a
This process will be used to select a master tenant to manage thc cornmercia, dsa of ~i -=--=-- ~ormatted. Underline - *-
soeciEc LACSJTA mrapeibies &I individual or business selected under this process will ~omatted: Indent: Lefc 0.25", Tabs: 0.5", L~st tab + Not at 0.25" , enter into agontract to mgraac and operate a commercial activity for a specifiedperiod of - -- -- = T
t h e not to exceed five (5) years. Contracts will be entered into between&r%C%lTA4 and meted: s- ---I -- -- -
individuals or business entities in accordance with&C%I $A'S l ~ x i n g potk~g?-$ ' Deleted: multlple spaces m MTA properttes - -_ _ " _-_ -
Formatted: Bullets and Nurnberlng - --- ----- Formatted: Underl~ne - _ i ---
Deleted: &lU - - - - --
JZeview of a Reauest to Use*, I i' 4 --4. Propem form s u b m i t t e d ~ an individual or Formatted: Underllne a----- -- - - -- - ---
business entity for a specified use of a particular&~~~-~IQPr~pert?/~for a limited time. ~eleted: MU %
L--- ---A
This process will be applied on a "first come, &st serve" basis and shall be limited in ~ormatb& Underline duration in accordance with the demand schedule for the requested property. An -%=-&d
CDeTeted: W A individual or business selected under this process will be issued a Permit to Use 7- -- - .. -- -- 7
Deleted: one JAChfTl'TA Property for a limited period of time not to exceed-QJ ye% --- ----A -- ---
Deleted: two -i ------ - ---
- Deletod: 2 -- - - -- -- - d
1.2 Proees., t"L- s; , ; g l Q & s ~ ; *
---- --- Deleted: 1 -- - - - - Deleted: s The nendor ieaect asr Drcc-z dialded 1nta$i3 (2 ) zCitGmrIe% 1: \:l;do,rs ss- +
-- -- -- p-
food and JrmL a rc ld~ i&~nd 37) ? i y e l l s n . n e n e r a l merchandise Deic lo ~ h a : high Formatted. No bullets or nurnber~ng
&ewna~d for crrtarn l a * ' sr&&o locateons and toas t r e ecjuaiib., and transEren~% due to& ---< - Formatted: Outline numbered +
high demand :em h r food 6.- .+2::2gq6.i?n55 [he se~ea:ts.~hl ohendors for VBTIOU:, bus @ Level: 2 4- Nurnbenng Style: 1, 2, 3,
rail stations ma\ be based r m LC LdJer\( sasle&@g Real Estate Qa&@rnent md% I ~ S ~ A + Start at: 2 + Alignment: Left + -- ----- - Altgned at: 0" + Tab after: 0.5" + general 50ot~ce ail>li;:nn t>e p,ibltc ofthe a\cpiLah~ip_a uf scridinz iocaeioi.1~ &t CPI"L~III . Indent - - at: 0.5"
-- -- -- =--i' LACW'I A bits a d rad fazilities Tk2 hot1~~5ball speckft the grSsj and d c a d l m p s Fomatted: Indent: Left: OS", NO
subrn i 'dn~ d Vending Service Qetmf; Appf~ca t io~~ j. l % ~ $ f j l ~ & t $ ~ n ' g ) L 0011 r d ~ e l ~ t 91 L bullets or nurnber~ng a - - -- _ _ --- Deleted: 7 -- -- ---
USE OF LACMTA PROPERTY FOR COMMERCIAL ACTMTIES -TUN!? 201 1 Page 3 of 6
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-- - sate dts~nbutiorr c-ilo~ or r e c a r j ~ . _ 1 ~ e ~ a ~ o F : 0 1 ~ cantroiled or iilsu-c;I substances F-:z,: 6, Deleted: to comply wrth the
reqwements of the Dmg-Free *." r 3 , I 0 : ,"+-persons operating a commercial activity in or around a transit Workplace A C ~ of 1988, thud parttes
facility$9austge;_c~g~&4~L~L%$ail Safety Training session for both light and heavy rail 1 - u b g from the MTA use, sale, Property dtstnbubon, are prohbited operating lines. consumpbon and the receipt of any
alcohol controlled or illegal substances - - - r Deleted: AU
-
80 RESPONSIBILITIES ~E~~ a l l - - _ _ I Deleted: attend an annual Facilities EnPineeringqs responsible for developing, reviewing and approving compliance with
I \ -_-----A -
thedesign-&riteria for kiosks, vending carts and built-out spaces used for commercial activity. I Deleted: Small Business Partieioationt[
Facilities Maintenance Department iqresponsible for providing maintenance services at A program to encourage and fachtate small busmesses shall be developed to
L L f a c i l i t i e s and$or d e r o r m i ~ a compliance with maintenance standads by approved asswe that small busmess entrepreneurs are aftorded an opp~mrmty to parttcipate vendors. m the vendmg and concessions program at rd and bus transit faahbes The
Risk Management De~artment &responsible for determining insurance requirements to be program wzu requue that a certm
; :02 ,-"_i by individuals or business entities occupying& 11 CtfT A Property. percentage -- -- -- of vendor -- space be d e m - I -- Deleted: 2
Real Estate Department gdministers this policy and is responsible for developing, - - ---, Deleted: - implementing, issuing and monitoring permits, lease agreements or management agreements +--a-W---=-- -- --.
I with individuals, business entities and vendors occupying space inJJA4ChlTA facilities. The Real Del-. D -. -. - .---- ----
Estate Department is also the central contact for all requests under this policy and the liaison for I Deleted: C >---a W"'= 4 ==-;i=
coordinating with appropriate&AC3PTTA departments aqd,foc detenrniaain~ the nurnbq-& - ,- Deleted:,
c;omrnereiat act:vil~es psxma;?d :it t t ra~- , rs*~~t ions irs;gl PIann;n~ 5 a 4 ~ ~ ~ r ~ a j . ?DL- k t * -- Deleted: MTA --- - , ---, RaiB O~crai~oa? The Redl tbtdtc Dc~a:-tmcn; ~ + i I 1 pian and imp1einent the Lotten sastsm fbr he D e m to detemune ,------"---- setectli7n o f ~ ~ n d ~ r b d ~ z l ~bed ~eh: t "~" ' : 2 2 Deleted. Plannm D e o a r t m e n m
L--__ -2 ---- -
TransitSecurifi is responsible forpi.s;l&i~,-the safety and security ofpatrons, employees and +- Deleted: -- MTA - - - - - --- --- - - the public occupying $~";;_?~&-facilities. Deleted: faabbes 8 --- - - ---- - - -
Deleted: provlde -, - -. - Deleted: MTA --___-- ----- --- I 3.O . . -p D e w . - .. -- a% --Y----=.=i --iiii;
Advertising - a printed or electronic media display for the purpose of conveying a message. Formatted: Font: Not Bold -.- ---- - - Deleted. M A
Automatic Teller Machine - electronic banking equipment that permits patrons' access to I--p-- =--- - Deleted: h4T.4
routine banking functions. ,= ---- -A - Deleted: Respons~ble for d e t m -- - -- -- -- -- -- -- --
Small Business - a business with less than five employees, inclusive of the owner. The business Deleted: ~efur ik =-&= =-=--?"
is usually a sole proprietor with a nominal investment in the equipment necessary to operate the Deleted: Devartment - - --, - -- business. Deleted: assunng
- - - -- -- -- Commercial Activity - any enterprise or venture by groups or individuals for the purpose of Deleted: MTA , promoting or selling products or services to transit patrons or the public -1 f i ~ k ~ i 1 - p - $11 i:-on?:.
i- - -- - Deleted: 3
. . - -- -
Emplovee - any part-time or full-time, temporary or permanent, exempt or non-exempt, D e l W . DEFINITIONS (All d e f i n m -- - -
represented or non-represented individual including interns whog:compensated by& tC'kfT % Deleted: 1s --.-a k ------- -- - --
Jcr sera ICE b$ Le;'Cea\, Ini' w sgai"bsd_ar2 or other compensation. '-Deleted: the M A -- - --- Deleted: for h s or her semces
Joint Development Use or Joint Development --&he ~ E U S C physical integration of bansit --- 7 F
facilities with real estate development, and the disposition andlor development orL&C%IT A- Deleted: is defined as the close __ - __ - _--- Deleted: MTA -- -- --
USE OF LACMTA PROPERTY FOR COMMERCIAL ACTIVITIES JUNE 201 1 Page 5 of 6
I owned or controlled real property& or near mass transit facilities, - - - - to operating bus and rail transit facilities.
I Newspapersi%J;a~azineu - any publication, intended for general circulation, published regularly or at short intervals, and containing information and editorials on current events and news of general interest. 3 3 ~ b ~ i ~ s ~ : c ~ ~ s are ~zqcri;1c"il ~~d2-rb~i'aibired f r o i ~ confaininc ~ornoar~~hic or sex~iaih e ~ ~ $ t ~ ~ t t ~ a e e r i a i s
Public Service -the objects and enterprises that specifically serve the needs of the general public or are conducive to the comfort and convenience of the entire community.
Space Available - when sufficient square footage is available so that the activity will not -- - - adversely affect the safety or securitys,,irgd [orthe general public &g&%x!h$J interfere in the * ,- ~e~eted: - afforded wiil?=n--z=z=L ------)
normal operation o f&~i f34 7',4's public transportation system. .- Meted: I L O ~ \ ~ l u the actlvlty -- ma
A program to encourage and facilitate small businesses shall be developed to assure that small business entrepreneurs are afforded an opportunity to participate in the vending and concessions program at rail and bus transit facilities. The program will require that a certain percentage of vendor space be designated for small businesses and that assistance be provided by MTA if necessary to offset the investment that may be required to participate in the program.
Vendors who have participated in the Vending Demonstration Project shall be permitted to participate in the Small Business Program if they meet the minimum requirements established for the program.
Planning De~artment - Responsible for determining the number and location of commercial activities permitted at transit stations. Review, along with Facilities Engineering, the architectural compatibility of any proposed vending/concession facilities. Also responsible for developing the Small Business Participation Program.
Procurement Department is responsible for issuing Requests for Proposals when required to identify and select vendors and concessions that will be permitted to occupy space in
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. Responsible for determining the number and location of commercial activities permitted at transit stations in
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DEFINITIONS (All definitions are limited to the purpose of this policy)
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