R2022-117 Resolution Accepting the Proposal and Authorizing a Contract with Houck Transit Advertising for Decatur Transit

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4. PAYMENT TERMS A. In consideration of the rights and privileges granted under this Agreement,the Contractor shall make payments to the City as follows: Percentage Payments per Month during the Agreement • 52.00%of billings per month in the first 12 month period • 52.00%of billings per month in the second 12 month period • 52.00%of billings per month in the third 12 month period • 52.00%of billings per month in the fourth 12 month period • 52.00%of billings per month in the fifth 12 month period Guaranteed Payments per Year during the Agreement • $50,000.00 in the first 12 month period • $50,000.00 in the second 12 month period • $50,000.00 in the third 12 month period • $55,000.00 in the fourth, 12 month period • $55,000.00 in the fifth 12 month period If the total of the payments for any year(12-month period) does not exceed the guaranteed payment amount,then the Contractor shall pay the City the amount of the difference. B. The percentage payment shall be based upon the monthly billings by the Contractor and not upon monthly receipts.Contractor bears the responsibility for all uncollectible billing,except in the case of a legally filed bankruptcy. C. The guaranteed payment and the percentage payment rate shall be appropriately adjusted,by mutual consent of the parties, in the event that the City eliminates buses or adds buses to its fleet. D. The Contractor shall furnish the City each month a copy of the client billing and at the same time shall remit to the City the percentage payment for that month,or the guaranteed payment for the year(12 month period),as specified above. E. The Contractor shall honor the year one(1)obligation of$5,000 sponsorship for the City's Holiday Initiative. S. OBLIGATIONS OF CONTRACTOR A. The City hereby grants to the Contractor the exclusive right and privilege to solicit,sell,and display advertising on the interior and exterior of buses operated by the City.The Contractor shall operate to maximize the revenue generated from such advertising.The Contractor shall provide this service in accordance with this Agreement.