General Requirements advertising on traffic traffic circles

A. Terms.

Application form: a form provided by the municipality by which a commercial party gives notice of its intention to enter into an advertising agreement with the municipality.

Commercial party: a person or legal entity acting in the business of a profession or company.

Advertiser: the commercial party with whom an advertising agreement has been entered into.

Advertising Agreement: the agreement between municipality and commercial party whereby the latter has the right to advertise for a specified period of time in the manner described in the Advertising Agreement.

Frame: the container in which an advertising sign can be attached.

Effective date: the day on which the agreement takes effect, namely: the day after the signed agreement is sent by the municipality to the advertiser. 

Annual fee: equals the bid made by a commercial party to be considered for entering into an advertising agreement.

List I: A listing of traffic traffic circles designated by the municipality for advertising by frame-mounted billboards.

List II: A listing of traffic traffic circles not designated by the municipality for advertising by frame-mounted billboards.

Design: the design of a billboard.

Reference date: the date on which new agreements are entered into.

Advertising sign: a sign with dimensions of 80 x 50 cm that has an imprint of an advertising message on one side in accordance with the design submitted by the commercial party along with the application form.

Auction: the process by which commercial parties can bid to obtain the right to enter into an advertising agreement.

Traffic traffic circle: a traffic traffic circle located within the territory of the Municipality of Kerkrade and included in List I or List II. 

The Municipality: the Municipality of Kerkrade, located at Markt 33 in 6461 EC Kerkrade.

Waiting list: an overview of commercial parties that have participated in an auction in any year but with whom no advertising agreement has been concluded in the same year.

B. Rules.

1. Traffic traffic circles located within the territory of the Municipality of Kerkrade can be made available for advertising purposes. 
2. Advertising referred to under 1. shall be by means of a billboard placed in a frame.
3. The number of frames to be placed per traffic traffic circle depends on the layout of the traffic traffic circle and may vary from a minimum of one to a maximum of four advertising signs. The layout as per drawings at List I.
4. Commercial parties may compete once a year by auction for one or more of the available frames of each designated traffic circle. Notice of this auction shall be given at least in the City Journal and the municipal website.
5. The opening bid is €572 excluding VAT.
6. The opening bid may be indexed by the College.
7. Indexation of the opening bid referred to under 5 shall be made on the basis of the Consumer Price Index (CPI), All Households, based on 2019=100, as published by the Central Bureau of Statistics (CBS), by multiplying each time the opening bid applicable up to the date of adjustment by a fractional number the numerator of which is the annual price index figure applicable to the last calendar year that has elapsed prior to the date on which the adjusted fee takes effect, and the denominator of which is the annual price index figure applicable to the calendar year preceding that last calendar year.
8. However, the compensation referred to under 7 shall not be revised if it would lead to a reduction in the applicable opening bid. In such a case, the opening bid shall be revised only if, as soon as the annual price index for the most recently completed calendar year before an adjustment date exceeds the annual price index used as the numerator for the most recently effected revision, and only in such a case by using the former annual price index as the numerator and the latter annual price index as the denominator; after this, the provisions under 7 shall apply again.
9. Each time the CPI referred to under 7 are published on a more recent time basis, the CPI on this more recent time basis shall take their place and be applied. Should the publication of the CPI referred to under 7 and 9 above be discontinued, the CPI will be replaced by as many similar or comparable annual price index figures as possible, to be determined by the parties in mutual consultation or, failing agreement between the parties, at the request of the most diligent party by means of a binding opinion by the director of Statistics Netherlands (CBS), in each case on the most recent time basis as published by Statistics Netherlands, and so on. Any costs associated with that binding opinion shall be borne by the parties each for one half.
10. An advertising agreement has a term of one, two or a maximum of three years and cannot be renewed. The term is fixed at the beginning of the advertising agreement.
11. Upon receipt of all bids, the available frames per traffic traffic circle will be allocated to highest bidder per traffic circle. And then - depending on the available frames - to the bidder with the second highest bid until all available frames are distributed. An agreement is then made with these party(ies).
12. If no contract is concluded, no other bid is made for the frame concerned or an advertising agreement is terminated prematurely, the frame will be offered again at the next auction. However, if potential commercial parties - who have been placed on the waiting list - still wish to contract for the traffic traffic circle in question, this will only be possible for the remaining term of the previously valid agreement with the monetary compensation and other Requirements agreed in that agreement. 
13. The municipality may fill the unused frames at its discretion to the extent not inconsistent with these policy principles. 
14. A commercial party with which an advertising agreement has been concluded may not transfer the rights arising therefrom to third parties without the consent of the municipality.
15. The potential advertiser shall provide the design of the billboard in accordance with the specifications of the "Request for Agreement" application form.
16.  Upon receipt of the request and draft referred to in item 15, the College shall review the draft.
17. The Board may reject a draft without giving reasons. In this case, the applicant will be given a one-time opportunity to amend the draft.  
18. After each auction, a new waiting list is established and the previously valid one expires. A commercial party placed on a previous waiting list will retain this position until the frame in question is part of a new auction. 
19. An advertising agreement has a term of one, two or up to three years and cannot be renewed.
20. If the billboard is replaced during the term at the request of the advertiser, the advertiser shall pay the manufacturing cost of the billboard.
21. The Municipality of Kerkrade is responsible for the (green) maintenance of the traffic traffic circle, the purchase, placement and maintenance of the frames and billboards.
22. The advertiser cannot derive any rights from the layout of the traffic circle and/or the performance of maintenance.

C. Other rules.

1. The Board of Mayor and Aldermen may designate traffic circles that are available for the placement of frames for the purpose of advertising signs (List I) and traffic circles that are not available for the placement of frames for the purpose of advertising signs (List II).
2. The Board of Mayor and Aldermen authorizes the Director of the Urban Development and Management Sector or his deputy to:
   a. mutating Lists I and II (see under 1);
   b. applying for the necessary environmental permits;
   c. entering into and terminating advertising agreements;
   d. reviewing submitted drafts;
   e. Adjusting the (draft) advertising agreement; 
3. After the term of the advertising agreement expires, available frames may be offered to potential advertisers until the next auction in accordance with the provisions of paragraph 12 (Rules section) of the General Requirements advertising on traffic traffic circles 2020. 
4. Traffic circles listed in List I that are available or whose contract ends on the survey date shall be offered for auction by public notice each year before the survey date.
5. The director of the Urban Development and Management Sector or his deputy are mandated to enter into and terminate advertising agreements as well as to sign them.