City Panel Agrees to Bus-Shelter Talks

A stalemate over construction of new city bus shelters showed signs of breaking Wednesday when a City Council panel agreed to begin negotiations with Outdoor Systems Inc., the company that holds a contract to operate the shelters.

“We want to renegotiate the contract to make sure the shelters are located in communities that haven’t been able to receive these services,” said City Councilman Richard Alarcon, chairman of the council transportation committee.

“The positive thing is that we are finally moving ahead,” said Dennis Kuhl, general manager of Outdoor Systems.

The bus shelter contract has been in limbo since Outdoor Systems took it over in 1996 as part of an acquisition deal.

Alarcon and other city officials said that in the past, shelters have been constructed in areas considered most desirable for attracting advertisers, rather than those with the most bus riders.

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They said that the city’s 13% cut of advertising revenues remitted by Outdoor Systems isn’t enough. As a result, the city has declined to give Outdoor Systems a formal go-ahead to continue with the contract.

With the contract disputes unresolved, planning has stalled on at least 400 promised new shelters.

As it is, there are only about 1,000 shelters in a city with more than 9,000 bus stops. The shelters are concentrated on major commercial strips, leaving many working-class neighborhoods without shelters.

Wednesday’s committee action directs city staff to begin talks with Outdoor Systems on how to resolve the contract disputes, and to begin planning where to build the shelters.

It remains to be seen how effective these talks will be.

One point of disagreement is likely to be the proposed increase in the city’s share of revenues.

Outdoor Systems lobbyist Howard Sunkin said Thursday the company aims to stick to the 13% cut allowed in the current contract.

Questioned further by Alarcon, Sunkin countered that Outdoor Systems is already making financial concessions to the city by not seeking redress for the extra funds spent to maintain the shelters.

Outdoor Systems claimed it spends up to 20% more on maintenance for L.A. shelters than on those in other cities, largely because people in L.A. scratch graffiti on the glass.