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SR 11-15-2022 8A City Council Report City Council Meeting: November 15, 2022 Agenda Item: 8.A 1 of 10 To: Mayor and City Council From: David White, City Manager, City Manager's Office Subject: Adoption of a Resolution Declaring Intention to Award a Franchise Agreement for RFP 300: Digital Wayfinding and Out-of-Home Advertising Kiosk Program and related categorical exemptions. (Continued from October 25, 2022) Recommended Action Staff recommends that the City Council: 1. Adopt a finding of Categorical Exemption pursuant to Sections 15303 (New Construction or Conversion of Small Structures) and 15311 (Accessory Structures) of the California Environmental Quality Act (CEQA) Guidelines in accordance with the Environmental Review section of this report; and 2. Adopt the attached Resolution of Intent declaring the Council’s intent to hold a public hearing on December 13, 2022 to award a franchise to BIG Outdoor for the installation, operation, and maintenance of a digital wayfinding and out-of- home advertising kiosk network for a 20-year term, per the terms and conditions stated in the resolution. Executive Summary The City initiated the Digital Wayfinding and Out-of-Home Advertising Kiosk Program to provide interactive information to residents and visitors, enhance public safety via emergency capabilities, deliver community messaging, and generate revenues through advertising sales. Deployment of the kiosk network would be structured as a franchise agreement with an exclusive vendor that would require no direct costs incurred or investment made by the City, with the franchisee required to install, operate, and maintain the kiosks. Compensation for the City and the franchisee would be realized through profit-share of advertising revenues. After an extensive evaluation process, finalist interviews, and reference checks, an 8.A Packet Pg. 330 2 of 10 internal evaluation team selected BIG Outdoor as the best bidder. BIG Outdoor offered a financial package that was significantly higher than all other bidders (including a $4 million signing bonus and a 50% revenue share offer to the City, with a $5 million minimum annual guarantee), the greatest community benefits, and kiosk technology and design most appropriate for the culture and aesthetic of Santa Monica, and would bring a well-qualified, sophisticated, and experienced team to deploy, operate, and maintain the kiosk network. Background In response to a recommendation from the Budget Task Force in February 2020, the City of Santa Monica is in the early stages of building a Community Partnerships (i.e., public-private partnerships) program to take a more innovative and entrepreneurial approach to address community priorities and further diversify the City’s revenue streams. This would support the City’s financial stability and its ability to continue providing robust community programs and services, particularly during times of economic volatility or unpredictable events, like the COVID-19 pandemic that decimated many of the City’s revenue sources. An equally important goal of the Community Partnerships program is to provide new opportunities for relationship-building and collaboration between the City, residents, and businesses. The creation of the philanthropic donor-advised fund We Are Santa Monica in April 2020 was the first component of this program. Since its inception, the Fund has raised more than $1.6 million in donations and granted nearly $1 million to local non- profit organizations, including a $400,000 grant to Local Initiatives Support Corporation to facilitate a small business grants program that exclusively supported Santa Monica businesses impacted by the pandemic. The next Community Partnerships initiative began in June 2020 when Council directed staff to work with The Superlative Group, Inc. (Superlative) to complete a valuation study to look at several viable public-private partnership opportunities, including a digital wayfinding and out-of-home advertising program, as well as potential sponsorship and naming rights opportunities. To complete this work, Superlative conducted site visits, 8.A Packet Pg. 331 3 of 10 extensive information gathering, comprehensive quantitative and qualitative valuation analyses, development of an asset database, policy and contract analysis, and industry benchmarking. In January 2021, as part of the City’s midyear budget update, staff presented the results of Superlative’s valuation study to Council. Following that presentation, Council directed staff to issue a Request for Proposals (RFP) to identify a franchise partner to establish a Digital Wayfinding and Out-of-Home (OOH) Advertising Kiosk Program to provide interactive information to residents and visitors, enhance public safety with emergency capabilities, deliver community messaging, and generate new revenues through advertising sales. Past Council Actions Meeting Date Description 06/09/2020 (Attachment A) Council directed staff to work with Superlative to complete a valuation study to look at all viable public-private partnership opportunities including sponsorships, naming rights, and digital wayfinding and out-of-home advertising. 01/26/2021 (Attachment B) Council directed staff to move forward with an RFP process to identify a franchise partner to implement a Digital Wayfinding and Out-of-Home Advertising Program. Discussion Per Council’s direction, RFP #300 was published in December 2021 for a franchisee to manage a comprehensive advertising program to procure a partner that has successfully deployed, operated, and maintained kiosk programs in a minimum of three other similar markets, has a demonstrated history of producing strong advertising revenues, and is committed to actively managing the program to meet the needs of the City of Santa Monica and the community. This would be a zero-dollar contract with the franchisee responsible for deploying, operating, and maintaining the kiosks at no cost to the City, with compensation realized through a percentage of advertising revenues. To ensure the franchisee has sufficient 8.A Packet Pg. 332 4 of 10 time to recover the significant initial capital investment required to launch the program, the term of the agreement would be 20 years. The RFP closed in January 2022 and six proposals were received. Staff conducted a comprehensive evaluation of all proposals and short-listed three finalists based on their ability to achieve the stated objectives with emphases on community benefits and profit sharing. Superlative then performed an in-depth analysis of the finalists’ proposals and advised staff on the appropriateness of the technical specifications, feasibility of revenue projections, and adequacy of community benefits included in each. Staff interviewed three finalists and then invited the top two to submit Best and Final Offers. After significant consideration, the internal evaluation team determined BIG Outdoor would be the best franchise partner for the City. BIG Outdoor has successfully launched similar digital kiosk networks in partnership with business improvement districts (BIDs) and retail centers in cities such as Miami, New York, Dallas, and Austin, and references attested to BIG Outdoor’s qualifications, responsiveness to community concerns, and the overall success of their digital wayfinding and OOH advertising networks. Given that Santa Monica’s digital kiosks would largely be installed in commercial/retail corridors and in consultation with our BIDs, BIG Outdoor’s reputation for cultivating positive relationships with local businesses would be invaluable to the success of our kiosk network. Further, BIG Outdoor has extensive experience working with municipalities on various other advertising projects, including the City of West Hollywood. The RFP required bidders to provide estimated revenue projections for the 20-year franchise term, as well as a minimum annual guarantee of revenues the City would receive if projected revenues are not achieved. BIG Outdoor’s proposal offered significantly higher financial benefits to the City than any other bidder. 8.A Packet Pg. 333 5 of 10 Projected Revenues BIG Outdoor offered the City a 50% share of adjusted gross revenues, which it estimates would be an approximate average of more than $14 million annually over the franchise term, assuming a total of 50 kiosks are installed. City staff inquired into the viability of BIG Outdoor’s revenue projections, given that they were considerably higher than all other bidders. Staff learned BIG Outdoor has existing relationships with many notable high-profile companies that heavily invest in advertising to grow and maintain their market share, including American Express, Apple, Facebook, and Uber, among others. BIG Outdoor has been active in Santa Monica since 2013 with its digital signage network at Santa Monica Place, and its RFP revenue projections were informed by current rates in the local OOH market. Minimum Annual Guarantee BIG Outdoor offered a minimum annual guarantee of $5 million commencing upon full deployment and completion of Phase 1, with 3% escalation every three years for the duration of the franchise term. Effectively, the City would receive either 50% of adjusted gross revenues or $5 million per year, whichever is higher. Signing Bonus In addition to the 50% revenue share and minimum annual guarantee offers, BIG Outdoor also committed to paying the City a $4 million signing bonus prior to the effectiveness of the franchise agreement. A signing bonus was not requested in the RFP and the offer demonstrates BIG Outdoor’s stable financial position and confidence in its success in the Santa Monica market. Additional Community Benefits BIG Outdoor committed to contribute 2% of its net media revenues from the Santa Monica kiosk network towards community programs and services at the City’s discretion. This type of benefit was not requested in the RFP, was not offered by any other bidder, and validates BIG Outdoor’s commitment to being an engaged community partner. 8.A Packet Pg. 334 6 of 10 To ensure success of the program, BIG Outdoor has also committed to hiring a full-time community ambassador to interface directly with the City and community for all communications. This would be a community member who is intimately familiar with Santa Monica’s neighborhoods, residents, culture, and local businesses. Furthermore, the City of Santa Monica would receive 10% free screen time dedicated to promoting City programs, services, initiatives, and announcements. In addition, any unsold time could be utilized for City messaging. Maintenance and Repair BIG Outdoor would be responsible for all maintenance and repair expenses, including graffiti removal, and would have a full-time team deployed seven days per week dedicated to maintaining the kiosk network. BIG Outdoor would also proactively monitor kiosks for software and network issues 24 hours per day. Kiosk Design The kiosks proposed by BIG Outdoor are designed for functionality and ease of use, and would include a variety of public benefits and smart technologies such as: • Wayfinding information highlighting local businesses and attractions; • Public safety alerts; • Emergency blue phone capability; • Optional public safety surveillance; • Public Wi-fi; • Access to the City’s 3-1-1 customer service portal; • Real-time transportation information, including arrival/departure data (e.g., bus, train, shared mobility devices, etc.); • Pedestrian counting data; • Photo booth with customizable Santa Monica digital frames and filters; • Multilingual display; and • City and community messaging/advertising space. 8.A Packet Pg. 335 7 of 10 In addition to these features, BIG Outdoor would retain a local architect to design the exterior of Santa Monica’s kiosks to ensure they are fully customized for our community and aesthetically suitable for the areas in which they would be installed. (Example kiosk designs are available in Attachment C for conceptual purposes only.) Vendor Selection Bidder Recommendation Best Qualified Person/Firm BIG Outdoor Evaluation Criteria Training/credentials/experience, competence/skill, capacity/ability to perform services promptly, sufficiency of financial/other resources, character/reputation, ability to provide future services as needed and price. Municipal Code SMMC 2.24.190 RFPs Received BIG Outdoor IKE Smart City Smart City Media Jolt Charge Inc. iKahan Media Tranzito-Vector RFP Data Posted On Posted On Advertised In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 12/01/2021 City's Online Bidding Site Santa Monica Daily Press 8 01/22/2022 Justification to Award Based on these criteria and criteria in SMMC 2.24.190, staff recommends BIG Outdoor as the best qualified firm to install, operate, and maintain the Digital Wayfinding and OOH Kiosk Program based on the firm’s expertise, experience with similar projects, the positive feedback received during reference checks, kiosk technology and user interface, community benefits, and significant financial commitments. Project Plan Once the franchise has been awarded and the agreement executed, BIG Outdoor would present and collaborate with the City and community (including residents, neighborhood organizations, and BIDs) to determine final kiosk designs and user interface/applications, as well as finalize permanent locations for the kiosks, based on locations previously approved by Council, and identify alternate sites should issues arise at any location. BIG Outdoor’s internal construction team, along with local subcontractors, would identify utility infrastructure relative to kiosk locations, create utility drawings and work plan for connectivity, coordinate with utility companies for 8.A Packet Pg. 336 8 of 10 approvals, and would compile and apply for all necessary building permits and entitlements. The project team would provide a detailed implementation schedule and prepare sites for installation, including notifications to community members within the vicinity of construction. In addition to installation of the displays, BIG Outdoor would provide comprehensive staff training on operating services and procedures. Upon launch of the wayfinding and OOH kiosk network, BIG Outdoor would immediately implement a comprehensive daily maintenance plan. Phase 1 would include hardware design and procurement, software and user interface design, kiosk installation and staff training, and ongoing network management, and would be deployed within 12 months. Phase 2 deployment would follow within 12 to 24 months of Phase 1. Environmental Review The project would install and operate up to 50 digital wayfinding/advertising kiosks in various locations throughout the city in the public right of way and other City-owned property. The kiosks would vary in size depending on space and other site specific locations; however, most would be on average 87-100" in height, 40-46" in width, and 10-12” in depth. The kiosks would provide interactive information and enhance public safety, and would be maintained by the franchisee. The project is categorically exempt from CEQA pursuant to Sections 15303 and 15311 of the CEQA Guidelines. Section 15303 provides exemption for a class of projects (Class 3) consisting of the construction of limited numbers of new, small facilities or structures. Section 15311 provides exemption for a class of projects (Class 11) consisting of the construction of minor structures accessory to existing commercial, industrial, or institutional facilities, including small parking lots. In addition, none of the exceptions specified in Section 15300.2 of CEQA Guidelines would apply that would preclude the use of this CEQA exemption - the project site is not located in a sensitive environment, the project would not have a significant effect on the environment, the 8.A Packet Pg. 337 9 of 10 project would not damage scenic resources, the project would not be located on a hazardous waste site; and the project would not cause a change to a historical resource. Minor excavation would be required to construct the kiosks, and therefore no significant construction impacts would occur. Furthermore, the kiosks would not be large enough to obstruct views of scenic resources, the installation of kiosks would not occur on hazardous or sensitive properties, and the kiosks would not damage historic or scenic resources. Therefore, this project is a Class 3 and 11 project that is categorically exempt per Section 15303 and 15311 of the CEQA Guidelines. Next Steps Upon adoption of the Resolution of Intent to Hold a Public Hearing, the RFP protest period would begin. The public hearing and first reading of the ordinance to award the franchise agreement would take place at the City Council’s December 13, 2022 meeting and any protests would be heard at that time. The second reading, adoption of the ordinance, and official award of the franchise would follow at Council’s regular meeting on January 10, 2023. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. The program would be structured as a franchise agreement that would require no direct costs incurred or investment made by the City, with the franchisee required to install, operate, and maintain the kiosks. Staff will return to Council for the public hearing to award the franchise to BIG Outdoor to install and for approval of corresponding budget actions to facilitate the forthcoming revenues. 8.A Packet Pg. 338 10 of 10 Prepared By: Melissa Spagnuolo, Community Partnerships Manager Approved Forwarded to Council Attachments: A. June 9, 2020 Staff Report (Web Link) B. January 26, 2021 Staff Report (Web Link) C. Kiosk Design Concepts D. Resolution of Intent to Hold Public Hearing to Award Franchise Agreement E. Written Comments F. PowerPoint Presentation 8.A Packet Pg. 339 8.A.cPacket Pg. 340Attachment: Kiosk Design Concepts (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 8.A.cPacket Pg. 341Attachment: Kiosk Design Concepts (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 8.A.cPacket Pg. 342Attachment: Kiosk Design Concepts (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 8.A.cPacket Pg. 343Attachment: Kiosk Design Concepts (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 8.A.cPacket Pg. 344Attachment: Kiosk Design Concepts (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 8.A.cPacket Pg. 345Attachment: Kiosk Design Concepts (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 8.A.cPacket Pg. 346Attachment: Kiosk Design Concepts (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 8.A.cPacket Pg. 347Attachment: Kiosk Design Concepts (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 City Council Meeting 11-15-2022 Santa Monica, California RESOLUTION NUMBER ____ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA DECLARING ITS INTENT TO AWARD A DIGITAL WAYFINDING AND OUT-OF-HOME ADVERTISING KIOSK FRANCHISE TO BIG OUTDOOR. WHEREAS, on January 26, 2021, the City Council directed City of Santa Monica staff to issue a Request for Proposals to identify a franchise partner to implement a digital wayfinding and out-of-home advertising program to provide interactive information to community members and visitors, enhance public safety with emergency capabilities, deliver community messaging, and generate new revenues through advertising sales; and WHEREAS, the City of Santa Monica issued Request for Proposals #300 on December 1, 2021 for a franchise partner that has successfully deployed, operated, and maintained kiosk programs in a minimum of three other similar markets, has a demonstrated history of producing strong advertising revenues, and is committed to actively managing the program to meet the needs of the City of Santa Monica and the community; and WHEREAS, City Charter Section 1601 requires that the City Council City pass a resolution declaring its intention to grant the franchises, stating the name of the proposed grantee, the character of the franchise and the terms and conditions upon which it is proposed to be granted; and 8.A.d Packet Pg. 348 Attachment: Resolution of Intent to Hold Public Hearing to Award Franchise Agreement (5470 : Resolution of Intent to Award OOH Kiosk WHEREAS, such resolution must fix and set forth the day, hour and place when and where any persons having any interest in the franchises or any objection to the granting thereof may appear before the City Council and be heard thereon; and WHEREAS, the resolution must direct the City Clerk to publish said resolution at least once within fifteen (15) days of the passage thereof, in the official newspaper; and WHEREAS, the time fixed for such hearing shall not be less than twenty (20) nor more than sixty (60) days after the passage of said resolution; and WHEREAS, at the time set for the hearing, the City Council shall proceed to hear and pass upon all protests and its decision thereon shall be final and conclusive. Thereafter it may grant, or deny, the franchise, subject to the right of referendum of the people; and WHEREAS, the City initiated the Digital Wayfinding and Out-of-Home Advertising Kiosk Program to provide interactive information to residents and visitors, enhance public safety via emergency capabilities, deliver community messaging, and generate revenues through advertising sales; and WHEREAS, deployment of the kiosk network would be structured as a franchise agreement with an exclusive vendor that would require no direct costs incurred or investment made by the City, with the franchisee required to install, operate, and maintain the kiosks; and WHEREAS, compensation for the City and the franchisee would be realized through profit-share of advertising revenues; and WHEREAS, after an extensive evaluation process, finalist interviews, and reference checks, an internal evaluation team selected BIG Outdoor as the best bidder, 8.A.d Packet Pg. 349 Attachment: Resolution of Intent to Hold Public Hearing to Award Franchise Agreement (5470 : Resolution of Intent to Award OOH Kiosk based upon several factors, including a financial package that was significantly higher than all other bidders ($4 million signing bonus and a 50% revenue share offer to the City with a $5 million minimum annual guarantee), significant community benefits, and kiosk technology and design most appropriate for the culture and aesthetic of Santa Monica; and WHEREAS, BIG Outdoor has agreed that the terms and conditions upon which the digital wayfinding and out-of-home advertising kiosk franchise will be granted are as follows: the franchise term will be twenty (20) years; installation of up to fifty (50) digital kiosks; the City will receive a fifty-percent (50%) share of adjusted gross revenues or a minimum annual guarantee of five-million dollars ($5,000,000) per year with a three- percent (3%) escalation every three years, whichever is higher; the franchise grantee will contribute two-percent (2%) of franchisee’s annual net media revenues to community programs and services at the City’s discretion; and a one-time signing bonus in the amount of four-million dollars ($4,000,000) that will be paid to the City prior to the effectiveness of the franchise agreement. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The above referenced recitals are incorporated by reference as true and correct. SECTION 2. Council hereby declares its intent to grant a digital wayfinding and out-of-home advertising kiosk franchise to BIG Outdoor. SECTION 3. The terms and conditions upon which the digital wayfinding and out-of-home advertising kiosk franchise will be granted are as follows: the franchise term 8.A.d Packet Pg. 350 Attachment: Resolution of Intent to Hold Public Hearing to Award Franchise Agreement (5470 : Resolution of Intent to Award OOH Kiosk will be twenty (20) years; installation of up to fifty (50) digital kiosks; the City will receive a fifty-percent (50%) share of adjusted gross revenues or a minimum annual guarantee of five-million dollars ($5,000,000) per year with a three-percent (3%) escalation every three years, whichever is higher; the franchise grantee will contribute two-percent (2%) of its annual net media revenues to community programs and services at the City’s discretion; and a one-time signing bonus in the amount of four-million dollars ($4,000,000) that will be paid to the City prior to the effectiveness of the franchise agreement. SECTION 4. The public hearing at which Council shall hear and pass upon all protests with respect to the proposed digital wayfinding and out-of-home advertising kiosk franchise grantee set forth in Section 2 will take place on December 13, 2022, at 5:30 p.m., at 1685 Main Street, Santa Monica, California 90401. SECTION 5. The City Clerk shall certify to the adoption of this Resolution, and thenceforth the same shall be in full force and effect. The City Clerk shall cause this Resolution to be published once in the official newspaper within 15 days after its adoption. APPROVED AS TO FORM: _________________________ DOUGLAS SLOAN City Attorney 8.A.d Packet Pg. 351 Attachment: Resolution of Intent to Hold Public Hearing to Award Franchise Agreement (5470 : Resolution of Intent to Award OOH Kiosk 1 Vernice Hankins From:Bobak Roshan <bobby@cafedemitasse.com> Sent:Friday, October 21, 2022 8:45 AM To:Gleam Davis; Sue Himmelrich; Kristin McCowan; Phil Brock; Oscar de la Torre; Lana Negrete; Christine Parra Cc:councilmtgitems; Denise Anderson-Warren; David White Subject:re: Agenda Item 14A, Digital Wayfinding and IKE Smart City EXTERNAL  Dear Councilmembers, I write this letter to express my support for IKE Smart City’s interactive digital kiosk deployment in the City of Santa Monica. IKE has successfully deployed interactive wayfinding kiosks in over 15 cities across the country. As a local business owner, I believe that IKE will enhance the pedestrian experience in Santa Monica to the benefit of local dining and retail establishments. IKE’s directory applications naturally drive traffic to local shops through agnostic business listings that focus on the proximity of the user to the business they are seeking, instead of paid listings that tend to dominate normal internet searches. Additionally, IKE’s emergency functionality will enhance safety in the area for our customers. The IKE team has reached out to small business owners and is committed to working in good faith the City of Santa Monica and our local businesses towards a successful program. During the early days of the pandemic, IKE donated free advertising space on all of its digital screens nationwide, telling residents which restaurants were open for takeout, delivery and dine-in, with scannable QR codes that could take residents to external websites with more information. This is the level of commitment the City of Santa Monica should be looking for in its kiosk partner. Most importantly, IKE has a proven track record of success with across the county with references from top cities across the nation. Thus, we know they deliver on their promises. For the above reasons, I support IKE Smart City’s bid for the City’s wayfinding kiosk RFP. Item 14.A 10/25/22 1 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 352 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 2 Best regards, ‐‐   Bobak Roshan  Founder  Demitasse Coffee  cafedemitasse.com    Item 14.A 10/25/22 2 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 353 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) October 20, 2022 Santa Monica City Councilmembers Via email Re: Santa Monica IKE Program Dear Santa Monica City Councilmembers, I write this letter to express Experience Columbus’ support of the IKE platform. IKE kiosks have been a part of our Columbus streetscape since late 2018 and have continued to provide critical resources to our residents and visitors as they navigate our city. At the touch of a finger, you can find local restaurants, the best public transit route to a museum, or the nearest shelter and the services it provides. Not only is the product outstanding, but the IKE team is top-notch, very communicative, and is continuously improving the software platform to stay ahead of the game in the field of wayfinding and digital interactive kiosks. The platform supports our small business and non-profit communities with free listings in the directory and significantly discounted advertising rates. The IKE team also ensures that there is continuously a mix of local art, community content and commercial content on each kiosk in our city. On behalf of Experience Columbus, I fully endorse the IKE kiosks, and I believe Santa Monica would benefit from a partnership with IKE Smart City, just as we have. Best regards, Kari Kauffman Chief Destination Experience Officer Experience Columbus 277 W. Nationwide Blvd., Ste.125, Columbus, OH 43215 614-222-6107 kkauffman@experiencecolumbus.com Item 14.A 10/25/22 3 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 354 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Item 14.A 10/25/22 4 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 355 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) October 21, 2022 Santa Monica City Councilmembers Via email Re: Kiosks in Santa Monica Dear Santa Monica City Councilmembers, On behalf of ABV Agency + Gallery, ,DPZULWLQJWRH[SUHVVP\VXSSRUWIRU,.(6PDUW&LW\ȢVELG for digital kiosks in Santa Monica. IKE is the only bidder with broad experience collaborating with local artists and institutions. Their well-tested kiosk product would be a useful platform to shRZFDVHORFDODUWLVWVȢZRUNWRWKHPLOOLRQVRIpeople that visit Santa Monica each year and will enliven the FLW\ȢVQHLJKERUKRRGVZLWKDUWDQGFRPPXQLW\FRQWHQW Public art has helped create, merge, and sustain communities across the landscapes of artistry, activism, education, and so much more. Through its power, public art largely remains one of the most prominently accessible and reliable means of supporting communal learning, community engagement, social justice, radical imagination, and collective memory. Supporting public art initiatives empowers the vitality of neighborhoods and KRQRUVWKHFLW\ȢVFRPPLWPHQW to its artists. In addition to being a public-facing platform to host community event information and emergency messaging, this program will support the local arts community by featuring creative works on new, highly visible platforms that will reach a diverse audience. Public art is a powerful form of expression that enriches communities and encourages meaningful dialogue. These kiosks will give exposure to artists who may otherwise not have had such a far-reaching opportunity to showcase their work. I am an enthusiastic supporter of IKE Smart City kiosks and endorse the team and product wholeheartedly. Thank you, Morgan Andrews, Director ABV Agency + Gallery Item 14.A 10/25/22 5 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 356 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Letter: Santa Monica City Council -Big Outdoor-221021 Date: October 21, 2022 RE: Adoption of a Resolution Declaring Intention to Award a Franchise Agreement for RFP 300: Digital Wayfinding and Out-of-Home Advertising Kiosk Program Santa Monica City Council To Whom it May Concern, We the McKinney Avenue Transit Authority, have worked with Big Outdoor for several years and have always appreciated the ad revenue they have been able to bring to our organization in Dallas. Big Outdoor manages the sales and marketing of our streetcar /trolley advertising program. They have successfully monetized these assets while making sure all campaigns and advertisers are of the highest quality. In addition, we have begun work with Big Outdoor in designing interactive/wayfinding kiosk signage for our busiest stations in our system. They’ve helped navigate this process by interfacing with local business owners, associations, and BIDs to assure a successful launch. During our multi-year relationship, Big Outdoor has proven to be a trusted partner and we look forward to collaborating with them for years to come. Sincerely, Vic Cervantes President McKinney Avenue Transit Authority (MATA) Item 14.A 10/25/22 6 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 357 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 1 Vernice Hankins From:Diana Nawi <nawiandforever@gmail.com> Sent:Monday, October 24, 2022 7:48 AM To:councilmtgitems; Denise Anderson-Warren; David White; Gleam Davis; Phil Brock; Christine Parra; Lana Negrete; Sue Himmelrich; Kristin McCowan; Oscar de la Torre Subject:Agenda Item 14A, Digital Wayfinding and IKE Smart City Attachments:DNawi_IKE Support Letter.pdf EXTERNAL    Dear Santa Monica City Councilmembers,     I am writing to express my support for IKE Smart City’s bid for digital kiosks in Santa Monica. Their well‐tested kiosk  product would be a useful platform to showcase local artists’ work to the millions of people that visit Santa Monica each  year and will enliven the city’s neighborhoods with art and community content. I have worked with Orange Barrel Media  to undertake major arts initiatives in cities across the US, chief among them our collaboration to bring arts programing  to Los Angeles in the City of West Hollywood. This has been an incredible platform to showcase the work of established  and emerging artists, from both the city and abroad. It has brought diverse artworks of the highest caliber into the  public sphere and made them accessible for a broad audience.      Orange Barrel Media’s commitment to public art and promoting the work of artists, as well as  collaborating with arts professionals based in the region, will only be furthered by the platform IKE will provide. IKE  presents a unique opportunity to foster engagement and allow for encounter and it will allow the arts program to reach  an even broader public. This is a unique opportunity to bring cutting edge contemporary art and community engaged  programming to sites throughout the city.    In addition to being a public‐facing platform to host community event information and emergency messaging, this  program will support the local arts community by featuring creative works on new, highly visible platforms that will  reach a diverse audience. Public art is a powerful form of expression that enriches communities and encourages  meaningful dialogue. Additionaly, these kiosks will give exposure to artists who may otherwise not have had such a far‐ reaching opportunity to showcase their work.    I am in full support of the IKE Smart City kiosk program and am excited to work alongside the Santa Monica arts  community to bring more public art to the city. Please find a letter of support attached as well.     Thank you,  Diana Nawi   Independent Curator  Item 14.A 10/25/22 7 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 358 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) October 18, 2022 Santa Monica City Councilmembers Re: Kiosks in Santa Monica Dear Santa Monica City Councilmembers, I am writing to express my support for IKE Smart City’s bid for digital kiosks in Santa Monica. Their well-tested kiosk product would be a useful platform to showcase local artists’ work to the millions of people that visit Santa Monica each year and will enliven the city’s neighborhoods with art and community content. I have worked with Orange Barrel Media to undertake major arts initiatives in cities across the US, chief among them our collaboration to bring arts programing to Los Angeles in the City of West Hollywood. This has been an incredible platform to showcase the work of established and emerging artists, from both the city and abroad. It has brought diverse artworks of the highest caliber into the public sphere and made them accessible for a broad audience. Orange Barrel Media’s commitment to public art and promoting the work of artists, as well as collaborating with arts professionals based in the region, will only be furthered by the platform IKE will provide. IKE presents a unique opportunity to foster engagement and allow for encounter and it will allow the arts program to reach an even broader public. This is a unique opportunity to bring cutting edge contemporary art and community engaged programming to sites throughout the city. In addition to being a public-facing platform to host community event information and emergency messaging, this program will support the local arts community by featuring creative works on new, highly visible platforms that will reach a diverse audience. Public art is a powerful form of expression that enriches communities and encourages meaningful dialogue. Additionaly, these kiosks will give exposure to artists who may otherwise not have had such a far-reaching opportunity to showcase their work. I am in full support of the IKE Smart City kiosk program and am excited to work alongside the Santa Monica arts community to bring more public art to the city. Thank you, Diana Nawi Independent Curator Item 14.A 10/25/22 8 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 359 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) October 21, 2022 Santa Monica City Council: To Whom it May Concern, The Gaslamp Quarter Association located in downtown San Diego has worked with Big Outdoor over the past several years to help monetize our advertising kiosk program throughout our district. They've been instrumental in bringing in revenue that has helped our business owners thrive and has allowed for us as an association to drive increased business to the Gaslamp. In addition to the sales and marketing aspect, they've implemented cleaning and maintenance procedures that keeps the kiosks and surrounding areas looking pristine at all times. They've always gone above and beyond to help many of our business owners, oftentimes by promoting their business on the kiosks and helping them drive revenue. Big Outdoor has a community minded approach that works well in the neighborhood. They are always innovating on ways to support the Gaslamp Quarter outside of just advertising. Big Outdoor has always been available to discuss special events and have helped us in ways outside the standard sales agreement. They're a true partner, and a group that we look forward to working with for years to come. If you have any questions, please feel free to reach out to me directly. Best regards, Michael Trimble Executive Director Gaslamp Quarter Association Item 14.A 10/25/22 9 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 360 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Item 14.A 10/25/22 10 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 361 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) From:Janet Renner Subject:Agenda Item 14A, Digital Wayfinding and IKE Smart City Date:Monday, October 24, 2022 10:28:27 AM EXTERNAL October 24, 2022 Santa Monica City Councilmembers Re: Kiosks in Santa Monica Dear Santa Monica City Councilmembers, On behalf of FRONT International: Cleveland Triennial for Contemporary Art, I am writing to express our support for IKE Smart City’s bid for digital kiosks in Santa Monica. The interactive kiosks have been an invaluable publicly accessible platform that showcase cultural and nonprofit organizations and enliven our city’s streetscape. Importantly, IKE has allowed us to engage with residents and visitors to educate about FRONT International: Cleveland Triennial for Contemporary Art that is a free, public contemporary art exhibition comprised of artist commissions, performances, films, and public programs that takes place across Cleveland, Akron, and Oberlin every three years. . Their well-tested kiosk product would be a useful platform to showcase local artists’ work to the millions of people that visit Santa Monica each year and will enliven the city’s neighborhoods with art and community content. Public art has helped create, merge, and sustain communities across the landscapes of artistry, activism, education, and so much more. Through its power, public art largely remains one of the most prominently accessible and reliable means of supporting communal learning, community engagement, social justice, radical imagination, and collective memory. Supporting public art initiatives empowers the vitality of neighborhoods and honors the city’s commitment to its artists. In addition to being a public-facing platform to host community event information and emergency messaging, this program will support the local arts community by featuring creative works on new, highly visible platforms that will reach a diverse audience. Public art is a powerful form of expression that enriches communities and encourages meaningful dialogue. These kiosks will give exposure to artists who may otherwise not have had such a far-reaching opportunity to showcase their work. FRONT International: Cleveland Triennial for Contemporary Art is in full support of the IKE Smart City kiosk program and believe they are best suited to engage the Santa Monica arts community to bring more public art to the city. Item 14.A 10/25/22 11 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 362 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Thank you, Fred Bidwell, Executive Director FRONT International: Cleveland Triennial for Contemporary Art Item 14.A 10/25/22 12 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 363 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Item 14.A 10/25/22 13 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 364 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 1 Vernice Hankins From:Kivland, Kelly <kkivland@wexarts.org> Sent:Monday, October 24, 2022 12:58 PM To:councilmtgitems; Denise Anderson-Warren; David White; Gleam Davis; Phil Brock; Christine Parra; Lana Negrete; Sue Himmelrich; Kristin McCowan; Oscar de la Torre Subject:Agenda Item 14A, Digital Wayfinding and IKE Smart City EXTERNAL    October 18, 2022    Santa Monica City Councilmembers    Re: Kiosks in Santa Monica     Dear Santa Monica City Councilmembers,     I am writing to express my utmost support for IKE Smart City’s bid for digital kiosks in Santa Monica.     IKE Smart City has been a generous supporter of the Wexner Center for the Arts on several past public art initiatives,  including with artists Ann Hamilton, Carlos Motta, and Anna Tsouhlarakis. We believe in the power of the arts to  illuminate and reflect the complexities of contemporary life and to foster cross‐cultural exchange, understanding, and  respect. These projects have enriched our community and encouraged meaningful dialogue, and we look forward to  partnering with IKE and Orange Barrel Media on future projects.    The team at IKE and Orange Barrel Media have a longstanding track record of partnering with artists and cultural  organizations to advance cultural projects. Their kiosks will be an invaluable platform to showcase cultural organizations  and artists’ work and will enliven Santa Monica’s neighborhoods. IKE’s platforms engages citizens and visitors in a more  inclusive way by reaching a broad and diverse audience.    I am in full support of the IKE Smart City kiosk program and believe they are best suited to engage the Santa Monica arts  community to bring more public art to the city.    Thank you,  Kelly Kivland    Kelly Kivland (she/her)  Chief Curator and Director of Exhibitions  Wexner Center for the Arts  Ohio State University  1871 North High Street  Columbus, OH 43210  website: https://wexarts.org/      Item 14.A 10/25/22 14 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 365 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) October 24, 2022 Santa Monica City Council To Whom it May Concern, We have worked with Big Outdoor for the past several years and have always appreciated the partnership. Big Outdoor manages several supergraphics and digital media kiosks throughout Downtown. They’ve always been responsive to our requests for including content benefiting the community. They ensure all assets and advertisers are of the highest quality. Big Outdoor has proven to be a trusted partner and we look forward to working them for years to come. Sincerely, Shalissa Perry, Chief Marketing Officer Downtown Dallas, Inc. Item 14.A 10/25/22 15 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 366 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Item 14.A 10/25/2216 of 31Item 14.A 10/25/228.A.ePacket Pg. 367Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 1 Vernice Hankins From:Council Mailbox Sent:Tuesday, October 25, 2022 8:00 AM To:councilmtgitems Subject:Fw: Agenda Item 14. Digital Kiosks From: Neil Carrey <neilcarrey@verizon.net> Sent: Monday, October 24, 2022 6:45 PM To: Council Mailbox <Council.Mailbox@santamonica.gov> Subject: Agenda Item 14. Digital Kiosks EXTERNAL When I saw Agenda Item 14 concerning digital Kiosks, I checked out the IKE Smart City, which seems to be the one whose digital Kiosks and used by other cities and has a long track record, and Big Outdoor, which the staff is recommending, which has no track record and I could find nothing on its website to indicate it has ever installed these types of Kiosks in any city. I then saw a demonstration of the IKE Kiosk and was extremely impressed. I had hoped to also see a demonstration of the Big Outdoor Kiosk but was surprised to learn they did not have a digital kiosk. In my research I was further surprised that staff was recommending the contract be awarded to an advertising and billboard company that has no experience delivering community focused multifunctional kiosks in the public right of way. Since these kiosks will be very visible in the City and this will be a very long program, the City should take sufficient time to make sure they have selected a trusted and experienced partner that has demonstrated its ability to deliver a Kiosk that meets or exceeds the community and City expectations and delivers value to the community and at the same time will be a revenue generator for the City. In addition, a partner with a proven tract record of successful installation and maintenance of these types Kiosks. IKE has this experience and demonstrated its ability to do so in this arena, which Big Outdoor has not. It appears to me that staff is recommending Big Outdoor because originally it came in with a better proposal from a financial standpoint. They clearly could not have recommended Big Outdoor over IKE based on its experience or product. While it would have been a mistake to award Big Outdoor the contract under these circumstance, it is my understanding that IKE Smart City has committed to matching the financial offer of Big Outdoor, it now makes no sense for Council to offer the contract to Big Outdoor and a lot of sense to award it to IKE Smart City. I urge you to do the right thing and not follow staff's advice. Thank you. Item 14.A 10/25/22 17 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 368 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 2 Neil Carrey neilcarrey@verizon.net neilcarrey@rubinattorneys.com (T) 310-451-9188 (C) 310-200-5067 Item 14.A 10/25/22 18 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 369 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) October 25, 2022 Santa Monica City Council Via Email RE: Agenda Item 14A, Digital Wayfinding and IKE Smart City Dear City Council Members: We at the National Federation of the Blind believe in the full capacity of blind and low-vision citizens. The realization of our mission regularly affords us the pleasure of working with companies such as IKE Smart City to collaborate in transformative ways. With IKE, we had the fortune over the last few years of assisting in the company’s journey to developing an innovative accessible wayfinding technology for the blind. IKE Smart City partnered with our Blind Users Innovating and Leading Design (“BUILD”) program in order to develop and test a solution that would enable blind and low vision users to access the benefits provided by the IKE Smart City kiosk. After twenty-one usability sessions with our BUILD participants, all having varying degrees of vision loss and technological experience levels, the sessions yielded beneficial results that helped determine that a mobile hand-off software solution provides an effective and inclusive opportunity for blind and low vision users to engage with IKE. The BUILD program sessions revealed that use of a personal mobile device while navigating city streets is an effective component for the blind and visually impaired, and this solution further allows IKE to leverage successful 3rd party mobile solutions whose innovations in the accessibility space continue to be an evolution of access to information for the blind and low vision user. Throughout the BUILD process, our team was impressed with IKE’s willingness to listen, incorporate, and innovate. IKE demonstrated a thoughtful approach and willingness to improve by speaking with software accessibility experts, conducting in-the-field research on tactile keypads for kiosks, and speaking with fast-food kiosk engineers, in addition to continued conversations with NFB and ongoing collaboration with blind community members via the BUILD program. Our experience with the IKE team has been incredibly positive, and we hope to express our support for the program. Sincerely, Anil Lewis Executive Director, Blindness Initiatives National Federation of the Blind AL/pwm Item 14.A 10/25/22 19 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 370 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) October 25, 2022 Client-Matter: 70128-030 VIA EMAIL Santa Monica City Council City Hall 1685 Main Street Santa Monica, CA 90401 Re: Agenda Item #14.A, Proposed Award of Contract for Digital Wayfinding and Advertising Kiosk Program Dear Honorable Councilmembers: This firm represents IKE Smart City (“IKE”) in connection with the City’s Request for Proposals for the Digital Wayfinding and Out of Home Advertising Kiosk Program (“RFP”). We are writing to respectfully request that you vote to approve a Resolution of Intent (“ROI”) to Award the Digital Wayfinding and Out of Home Advertising Kiosk Program contract to IKE with its improved financial offer, which you have complete authority to do tonight under California law, the Santa Monica City Charter (the “City Charter”), the Santa Monica Municipal Code, and the RFP. Doing the opposite – proceeding with an ROI to award the contract to BIG Outdoor (“BIG”), on the other hand, would lead to additional delay, violate the express terms of the City’s RFP, and run counter to the public interest. IKE is fully confident in the City Council’s ability to select IKE tonight and agrees to indemnify the City from any challenge to IKE’s selection under this procurement. I. California Law and the City Charter Authorize the City Council to Modify the Draft ROI to Select IKE. The City Charter, which governs the award of the contract under the RFP, does not require the City Council to move forward with a staff recommendation, and in the absence of any such requirement, the City Council has the authority to decide for itself which of the bidders it will name in the ROI and to specify the terms and conditions upon which the City Council proposes to grant the franchise. In California, “[t]he amount of leeway a public entity has in awarding a contract is governed by the statutory or municipal law framework applying to that contract.” Great West Contractors, Inc. v. Irvine Unified School Dist., 187 Cal.App.4th 1425, 1447 (2010). Item 14.A 10/25/22 20 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 371 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Nothing in the City Charter limits the City Council’s leeway to disregard a staff recommendation, which is just that – a recommendation. The City Charter provides the City Council with the sole authority to grant a franchise by ordinance. City Charter, Section 1600 (“The City Council is empowered to grant by ordinance a franchise to any person, firm or corporation […] The City Council may prescribe the terms and conditions of any such grant.”). The Charter also empowers and requires the City Council to pass a resolution declaring its intention to grant a franchise agreement. City Charter, Section 1601 (“Before granting any franchise, the City Council shall pass a resolution declaring its intention to grant the same, stating the name of the proposed grantee, the character of the franchise and the terms and conditions upon which it is proposed to be granted.”). Nothing in these or any other provisions of the City Charter (nor the Santa Monica Municipal Code for that matter), obligate the City Council to follow staff’s recommendation in making an award. Substituting bidders from the dais is permissible under California law and there are notable examples of other situations when a decision-making body has disregarded staff’s recommendation and substituted an alternative bidder (see Exhibit A for example). The City Council has the ultimate legal authority to select a grantee, as well as “the character of the franchise and the terms and conditions upon which it is proposed to be granted.” The City Council can lawfully exercise this authority to modify the ROI and declare its intent to award the Digital Wayfinding and Out of Home Advertising Kiosk Program contract to IKE, including modifying the terms and conditions upon which the City Council proposes to grant the franchise. The City Council can also move forward with an ROI for IKE that includes terms that were not in IKE’s Best and Final Offer (“BAFO”). The City Council is not obligated or bound by terms and conditions for the franchise proposed by City Staff, IKE, or BIG, and has the full authority to change the terms in the ROI before adopting it because the Council is the ultimate decision-making body. As detailed above, the City’s Charter provides the City Council with the discretion to include the “terms and conditions upon which [the franchise] is proposed to be granted.” Nothing in the Charter precludes or limits the Council’s discretion to only including terms in a respondent’s prior proposal. II. The RFP Expressly Authorizes the City Council to Modify the ROI to Select IKE. Rather than require the City Council to move forward with the staff recommendation, the RFP makes it expressly clear that the City Council may select any proposer it deems to be in the best interest of the City, so long as the selected bidder meets the quality and compliance specifications of the RFP (something which we believe BIG cannot possibly meet under any rational basis). The RFP states: Notwithstanding the Evaluation Team’s selection, the City reserves the right to award this RFP and the resultant Franchise Agreement in any manner it deems to be in the best interest of the City and make the selection based on its sole Item 14.A 10/25/22 21 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 372 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) discretion. The City is the sole and exclusive judge of quality and compliance with proposal specifications in any of the matters pertaining to this RFP. RFP, Section 5.1 (emphasis added). It was the clear and explicit expectation of the City, and the understanding of the proposers to the RFP, that the City Council could have ultimate discretion to award the Digital Wayfinding and Out of Home Advertising Kiosk Program contract to whichever bidder the City Council determined to be “in the best interest of the City.” As IKE has demonstrated, and as the RFP scoring (aside from the inappropriate and unlawful BAFO) scoring, which completely disregarded the RFP evaluation criteria) reflects, IKE’s proposal and product are clearly the best option for the City. As you are aware, IKE has confirmed it is willing to accept a franchise agreement with financial terms and conditions that exceed BIG’s BAFO. Nothing in the City’s Charter, Municipal Code or RFP precludes the City Council from adopting an ROI that has financial terms and conditions that differ from IKE’s BAFO. As a courtesy, IKE proactively confirmed its willingness to agree to improved terms in yesterday's letter to the City Council, but ultimately it is the City Council that gets to decide what terms are laid out in the ROI, just as it is entitled to negotiate improved benefits for the City prior to awarding any contract or franchise. Moving forward with an ROI with IKE is clearly in the best interests of the City, both in terms of user experience and financial return to the City. Again, the City Council can lawfully exercise this authority to modify the ROI, as anticipated in the RFP, and declare its intent to award the Digital Wayfinding and Out of Home Advertising Kiosk Program contract to IKE, including modified terms and conditions upon which the City Council proposes to grant the franchise. III. Moving Forward with Staff’s ROI is a Recipe for Protracted Delay. Should the City Council choose to move forward with the ROI to BIG as recommended by City Staff, IKE would have solid grounds to protest the award. If that were to happen, the City Council would then need to restart this process, issue and approve another ROI for an award to IKE, and hold a new and fully noticed City Council meeting in the future. And, to make matters worse, the City could then face a frivolous protest from BIG on such an award, necessitating yet another duly noticed City Council hearing and further delay. There is no reason for the City to incur these delays. The City Council should instead exercise its authority to modify the ROI now and notice its intent to award the Digital Wayfinding and Out of Home Advertising Kiosk Program contract to IKE. Unlike a frivolous protest by BIG, there are several reasons a protest of an award to BIG would be meritorious. BIG’s proposal is nonresponsive for failing to meet the minimum experience and reference requirements of the RFP, and should have been disqualified from the start. While the City enjoys wide latitude to act in the public interest, it cannot award a contract to a nonresponsive or non-responsible bidder, or completely disregard the RFP’s clear product Item 14.A 10/25/22 22 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 373 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) and scoring requirements. The RFP called for proposers “who have successfully deployed, operated, and maintained kiosk programs in a minimum of three other similar markets.” RFP, Section 2.1. BIG does not have kiosks in three cities or public rights-of-way, let alone a cutting- edge, diverse city like Santa Monica. The RFP asked bidders to “[p]lease submit at least three references from other public entities.” RFP, Section 4. BIG’s proposal had zero public entity references. Why? Because it has not entered into interactive kiosk contracts with public entities as required by the RFP. The same goes for BIG’s partner, which while not a billboard company like BIG, is only a startup focused on shopping mall directory kiosks with limited functionalities. Finally, the Evaluation Committee completely disregarded the RFP’s scoring criteria after requesting the BAFOs. It is clear from the BAFO scoring that after IKE and BIG submitted their BAFOs, the bidders were completely re-scored on a new, 100 point scale that was untethered to any evaluation criteria in the RFP. This is a clear violation of California procurement law, which requires that awarding agencies score proposals based on the announced scoring criteria. And the above is just the tip of the iceberg. You have already received a letter from my client yesterday illustrating some of the deficiencies in BIG’s product. The problems in moving forward with an ROI with BIG are so glaring that it should not merit a detailed protest in the future. * * * For the reasons discussed above, we respectfully ask that the City Council modify the ROI, as it has the authority to do, and notice its intent to award the Digital Wayfinding and Out of Home Advertising Kiosk Program contract to IKE. Thank you very much for your time and attention to this matter. Please feel free to contact me if you have any questions. Very truly yours, Victor De la Cruz Manatt, Phelps & Phillips, LLP cc: David White, City of Santa Monica City Manager Douglas T. Sloan, City of Santa Monica City Attorney Susan Y. Cola, City of Santa Monica Assistant City Attorney Pete Scantland, CEO, IKE Smart City Item 14.A 10/25/22 23 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 374 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Exhibit A Item 14.A 10/25/22 24 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 375 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 10/25/22, 12:08 PM City Council panel approves three contracts for LAX concessions - Los Angeles Times https://www.latimes.com/archives/la-xpm-2010-sep-14-la-me-0914-lax-concessions-20100914-story.html 1/4 City Council panel approves three contracts for LAX concessions BY DAN WEIKEL AND DAVID ZAHNISER, LOS ANGELES TIMES SEPT. 14, 2010 12 AM PT The push to overhaul restaurants, beverage stands and gift stores at Los Angeles International Airport took a major step forward Monday when a special City Council panel approved three retail contracts to a joint venture that features former Lakers star Magic Johnson and the widow of attorney Johnnie Cochran. The five-member Board of Referred Powers voted 4 to 1 to give the contacts to a partnership involving the Hudson Group, Magic Johnson Enterprises and Concourse Ventures, which is headed by Dale Mason Cochran. In one of the contracts, board members picked the joint venture over Miami-based Areas USA, which had been recommended by LAX officials. Council members Janice Hahn, Bernard C. Parks, Ed Reyes and Bill Rosendahl voted for the contracts. Councilman Tony Cardenas, the board’s chairman, voted no, saying he believed the panel had rushed into a decision. Parks, who was endorsed by Johnson during his unsuccessful 2008 campaign for county supervisor, made the motion to substitute the joint venture for Areas USA. He said after the vote that he favored Hudson’s bid because it had included two local businesses — Magic Johnson Enterprises and Concourse Ventures — as equity partners. BREAKING NEWS 5.1 earthquake hits near San Jose, rattling Bay Area Item 14.A 10/25/22 25 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 376 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 10/25/22, 12:08 PM City Council panel approves three contracts for LAX concessions - Los Angeles Times https://www.latimes.com/archives/la-xpm-2010-sep-14-la-me-0914-lax-concessions-20100914-story.html 2/4 Giving the contract to the Hudson team is in line with the city’s efforts to put greater weight on contracts with local companies, Parks said. “They didn’t just bring in a minority female to apply for their 10%" share of the bid package, he said. “They made them equity partners.” Eduardo Uribe, an Areas USA vice president, said company officials were disappointed that the Board of Referred Powers chose “to ignore the airport staff’s recommendation after a lengthy and thorough process.” “We look forward to being awarded the food and beverage packages for which we were also recommended in a fair competition,” he said. The three retail contracts must go to the City Council for final approval. Five other food and beverage contracts will be considered by the Board of Referred Powers on Sept. 20. Monday’s decisions were greeted favorably by Gina Marie Lindsey, executive director of Los Angeles World Airports, the agency that operates LAX, Ontario International Airport and Van Nuys Airport. “I am delighted to have made this much progress,” she said. Throughout Monday’s meeting, Cardenas voiced dismay over learning that some of the airport’s evaluators had discarded their notes or failed to make comments on bid forms about their reasoning for scoring a company the way they did. He called the loss of those notes “extremely terrible and odd” and grilled airport officials about the lack of backup documents. Cardenas also said he was concerned that airport evaluators did not check bidders’ references until after scoring a company. Lindsey told the panel that references were Item 14.A 10/25/22 26 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 377 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 10/25/22, 12:08 PM City Council panel approves three contracts for LAX concessions - Los Angeles Times https://www.latimes.com/archives/la-xpm-2010-sep-14-la-me-0914-lax-concessions-20100914-story.html 3/4 eventually checked and that evaluators decided that what was found would not affect any company’s score. dan.weikel@latimes.com david.zahniser@latimes.com Dan Weikel Dan Weikel covered local aviation, the California high-speed rail project, Metrolink, the MTA and regional transportation issues for the Los Angeles Times before leaving in 2017. He started with the newsroom in 1989 and previously covered courts and transportation in Orange County, the ports of Los Angeles and Long Beach as well as substance abuse, environmental issues and law enforcement as a member of a project team. A native of San Diego, Weikel is a graduate of the UC Santa Barbara and the master’s program at the University of Missouri School of Journalism. David Zahniser Twitter Instagram Email Facebook David Zahniser covers Los Angeles City Hall for the Los Angeles Times. More antisemitic hate seen in L.A. after Kanye West’s hateful rants Your voting guide to the 2022 California midterm election FOR SUBSCRIBERS SUBSCRIBERS ARE READING Item 14.A 10/25/22 27 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 378 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 10/25/22, 12:08 PM City Council panel approves three contracts for LAX concessions - Los Angeles Times https://www.latimes.com/archives/la-xpm-2010-sep-14-la-me-0914-lax-concessions-20100914-story.html 4/4 Subscribe for unlimited access Follow Us eNewspaper Coupons Find/Post Jobs Place an Ad Media Kit: Why the L. A. Times? Bestcovery Copyright © 2022, Los Angeles Times | Terms of Service | Privacy Policy | CA Notice of Collection | Do Not Sell My Personal Information Why so many L.A. people are drawn to this tiny, rustic town north of Santa Barbara Hollywood talent agency CAA cuts ties with Kanye West after antisemitic tirade Thousands of apartments may come to Santa Monica, other wealthy cities under little-known law Item 14.A 10/25/22 28 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 379 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 1 Vernice Hankins From:Council Mailbox Sent:Tuesday, October 25, 2022 2:24 PM To:councilmtgitems Subject:Fw: Support for IKE Smart City Bid - Item 14 From: Jan Williamson <jwilliamson@18thstreet.org> Sent: Tuesday, October 25, 2022 1:13 PM To: Council Mailbox <Council.Mailbox@santamonica.gov> Subject: Support for IKE Smart City Bid EXTERNAL Dear Santa Monica City Council, I'm writing as a Board member of SMTT and as the Executive Director of 18th Street Arts Center to encourage you to give new consideration to IKE's proposal to provide new interactive wayfinding in Santa Monica. I've interacted with their technology in person, and believe their 7 years of real world experience operating their platform and learning from working in other cities like Miami, Berkeley, Atlanta, Houston, will significantly benefit Santa Monica. • They have the capacity to be up and running in Santa Monica right away. • Their platform is completely interactive and able to communicate with people's mobile phones. • Their platform can accommodate multiple languages • They've developed good ADA systems by working directly with the disability community. • They commission and pay artists at appropriate rates for their work on their platform. (This is unusual!) • Their hardware is able to endure the extreme weather conditions of Detroit and Tempe Arizona, and the salt-air of Miami. • It appears that they have a business culture of innovating based on the needs of their clients, which is important for such a long commitment. I hope you give their proposal the consideration it deserves when thinking about this 30 year contract. Very best regards, Jan Item 14.A 10/25/22 29 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 380 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 2 Jan Williamson Executive Director she/her @18thstreetarts 18thstreet.org SUPPORT 18TH STREET ARTS CENTER Join Borderless on Patreon Item 14.A 10/25/22 30 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 381 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) October 25, 2022 Re: Big Outdoor reference To whom it may concern, Our partnership with Big Outdoor extends over five years. They were the first media firm to secure approval for a digital installation as part of the Atlanta Arts & Entertainment district. Big Outdoor has been a responsive partner that supports the goals and objectives of A&E Atlanta to elevate the district and the local creative community. Sincerely, Fredalyn M. Frasier, Project Director, Planning and Urban Design Central Atlanta Progress (CAP) Atlanta Downtown Improvement Development (ADID) Item 14.A 10/25/22 31 of 31 Item 14.A 10/25/22 8.A.e Packet Pg. 382 Attachment: Written Comments (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) RFP 300: Digital Wayfinding + OOH Advertising Kiosks City Council October 25, 2022 8.A.f Packet Pg. 383 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) RFP Evaluation Team Scoring/Voting Members: Susan Cola, City Attorney's Office Gigi Decavalles-Hughes, Finance Jay Dinkins, Transportation Sarkis Metspakyan, Information Services Alex Nazarchuk, Public Works Melissa Spagnuolo, City Manager's Office Jennifer Taylor, Community Development Internal Consultants: Heidi Duran, Finance Araceli Esparza, Finance Ben Delfin, City Attorney's Office Jason Kligier, Transportation Kellee MacDonald, Finance Stephanie Reich, Community Development Oscar Santiago, Finance 8.A.f Packet Pg. 384 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Background2019: Budget Task Force Recommendation 2021: Council directed staff to move forward with OOH RFP 2022: RFP closed with 6 proposals received 2020: Council directed staff to do a valuation study to look at P3 opportunities 8.A.f Packet Pg. 385 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) RFP Terms & Requirements •20-year franchise term •50 kiosks deployed in two phases •Percentage of ad space for City/community use •Revenue projections with minimum annual guarantee •Kiosk features and technical requirements: public Wi-Fi, emergency blue phone capability, pedestrian counting, multi-lingual, ADA accessible, transit info, etc. 8.A.f Packet Pg. 386 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) PRELIMINARY SCORING Evaluators reviewed proposals and independently assigned preliminary scores by category. FINAL SCORING Evaluators assigned final scores based on the Best and Final Offers, including consideration of interviews and reference checks. BEST + FINAL OFFERS The two finalists were asked to provide Best and Final Offers. REFERENCE CHECKS Staff selected two finalists and contacted references provided by each. PROPOSER INTERVIEWS The top 3 proposers were invited to interview with City staff. SUPERLATIVE ANALYSIS The Superlative Group performed an in-depth analysis and evaluation of the top 3 finalists. Evaluation Process 8.A.f Packet Pg. 387 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Best + Final Offers The only opportunity to amend or modify proposals based on feedback from the City. Information from competing proposals will not be disclosed to other proposers prior to submission of a Best and Final Offer. 8.A.f Packet Pg. 388 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 01 03 02 Offered the greatest financial benefits to the City Sophisticated, cohesive team whose professionalism outshined other bidders throughout the RFP process Fully customizable kiosks that will be architecturally- designed to meld with the unique characteristics of Santa Monica's neighborhoods Will hire a full-time team dedicated exclusively to Santa Monica 04 Recommended Bidder: BIG Outdoor 8.A.f Packet Pg. 389 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) •50% revenue share ⚬City's share of revenues estimated to be nearly $9 million upon deployment of Phase 1, and $13.5-17 million when both phases deployed. •If projected revenues are not met, the City would receive a minimum annual guarantee of $5 million per year, commencing upon full deployment of Phase I. •$4 million signing bonus Financial Proposal 8.A.f Packet Pg. 390 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Other Notable Community Benefits •Custom kiosk design •Additional 2% of net revenues to be donated to support the City's choice of community programs or service •10% of ad space reserved for City/community use •Discounted rates for local businesses 8.A.f Packet Pg. 391 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Digital Wayfinding & Out-of-Home Advertising Kiosk Program for the City of Santa Monica Submitted by BIG Outdoor 25 October 2022 LINKING TO THEFUTURE 1 8.A.f Packet Pg. 392 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 1. MEET BIGOUTDOOR...........................3 2. QUALIFICATIONS..............................11 3. COMMUNITY ENGAGEMENT……...19 . 4.KIOSK CONCEPTS & FEATURES........22 5. PROJECT PLAN..................................22 CONTENTS 2 8.A.f Packet Pg. 393 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) MEET BIGOUTDOOR 3 8.A.f Packet Pg. 394 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Brad Berkely CEO & Founder Mr. Berkley currently serves as CEO of BIG Outdoor and brings 23+ years of entrepreneurial business experience and a customer base comprised primarily of Fortune 500 clients. Before founding BIG Outdoor, Mr. Berkley successfully founded and sold Base4 Group. Brad has been featured in Business Week, CNN, Fox News, National Public Radio, and numerous other media outlets supporting entrepreneurship. Mr. Berkley also sits on the boards of select startups in the Dallas-Fort Worth area. Eric Niemeyer Founder Mr. Niemeyer is one of the Founders of BIG Outdoor, where he is responsible for new advertising opportunities and client relationships. He brings over 16 years of media sales and agency management experience. Previously, Mr.Niemeyer spent eight years at Outdoor Media Group, where he managed OOH investments for clients such as Apple, CBS, Wells Fargo, and Hilton. MEET BIGOUTDOOR KEY PERSONNEL | Founders Domain Northside, Austin, TXDomain Northside, Austin, TX 4 8.A.f Packet Pg. 395 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Jason Cox CTO With 15+ years of experience in managed services and operating large scale digital platforms, Mr. Cox is a notable leader in the industry. He has worked with clients ranging from small startups to industry leaders like Microsoft, Salesforce, and Viacom, helping develop impactful events, operational strategies, and push existing systems beyond their intended design. He is constantly looking for new and innovative ways to incorporate technology, and relishes hands-on moments where he can develop and troubleshoot new solutions. He’s been invited to speak at such conferences as DSE and SIGGRAPH. Bill Tagliaferri President Mr. Tagliaferri serves as President and heads the real estate division for BIG Outdoor and develops media assets throughout the United States. He has over 20 years experience in OOH, construction management and real estate services. Mr. Tagliaferri has developed and overseen various digital OOH projects throughout the US and is very proficient in the implementation of digital signage networks. Erin Watkins General Counsel Ms. Watkins worked at two nationally-recognized law firms before joining BIG Outdoor in 2015. She provides expert and strategic legal advice to management and sets internal governance policies to ensure all legal objectives are fulfilled.She also works with property owners,governmental entities,and other third parties on the development of BIG Outdoor’s signage assets. 5 MEET BIGOUTDOOR KEY PERSONNEL | Santa Monica Team Ryan Levine VP, West Coast Real Estate Mr. Levine brings over a decade of experience to managing BIG Outdoor’s existing Landlord partnerships and spearheads new signage developments on the West Coast. He joined BIG Outdoor in 2014 after four years with Van Wagner Outdoor, where he was responsible for signage inventory development and alternative OOH product growth in the Los Angeles market. 8.A.f Packet Pg. 396 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Natina Urbano Director of Operations West Coast Natina Urbano has a decade of successful experience in operations management. Ms. Urbano oversees the expansion of assets and photography on the West Coast. She hails from the state of Texas (where she attended Texas State University) and she is a strong believer in under-promising and always over-delivering. Ro Reyes VP, West Coast Sales Ms. Ro Reyes handles national sales for the West Coast. With 12+ years of experience, she is responsible for the company’s relationships with top premier agencies and accounts such as Apple, Warner Bros, Amazon, Netflix, Hulu, T-Mobile and CW, to name a few. She manages a team and ensures the highest standards of quality control and quality assurance, both internally and externally. She’s developed and implemented policies and procedures and oversees the day-to-day operational duties for Apple. 6 MEET BIGOUTDOOR KEY PERSONNEL | Santa Monica Team Emily Lanzillotti National Sales Representative Ms. Lanzillotti is a member of our West Coast Sales Team, responsible for servicing and growing relationships with our key agencies and accounts. These include Google, Youtube, Disney & Universal Studio’s, among others. With over seven years of OOH experience, she has worked on both the Agency and Sales side of the industry, as well as international experience (she's an Australian native). This mix of OOH knowledge helps support her clients’ strategies and campaign execution. Nicole Enriquez National Sales Planner Nicole Enriquez is a National Sales Planner for BIG Outdoor's West coast team. She has 7+ years experience in the OOH industry on both the client and media partner side. Her agency experience has helped her develop a deep understanding of client needs and how to best position BIG Outdoor within the OOH ecosystem. Nicole is a Santa Monica native but spent time on the East coast during college at Boston University. 8.A.f Packet Pg. 397 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 7 MEET BIGOUTDOOR Markets PORTLAND SAN FRANCISCO SAN DIEGO AUSTIN CHICAGO ATLANTA PHILADELPHIA BOSTON BIGOUTDOOR 2 LOS ANGELES OFFICES BIGOUTDOOR NEW YORK OFFICE BIGOUTDOOR DALLAS OFFICE 8.A.f Packet Pg. 398 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) 8 MEET ROVEiQ Profile Rove iQ is a technology company headquartered in Greater Cincinnati, Ohio, with additional offices in Miami, Florida. •BIGOUTDOOR and RoveiQ have a strategic partnership. •BIGOUTDOOR is invested in RoveiQ •RoveiQ has the most interactive kiosks deployed in the state of Florida RoveiQ’s Brand Promise: To enrich lives through intelligent software designed to move humans. Rove iQ is in the following markets: •Newport Beach, CA •Irvine, CA •Bay Area, CA •Atlanta, GA •Lawrenceburg, IN •Cleveland, OH •Cincinnati, OH •Charlette, NC •Raleigh, NC •Las Vegas, NV •Miami, FL •Orlando, FL •Tampa, FL •Cape Coral, FL 8.A.f Packet Pg. 399 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Nick Duskey Chief Technology Officer Mr. Duskey has 10+ years of technical and development experience, implementing new products and processes. Nick Manages the software development and security of our technology. Russ Middleton Chief Operations Officer Mr. Middleton will be responsible for taking you through the deployment process of the Rove iQ user experience. He creates the user interface and user experience for all parts of the digital screens. He has over 10 years of experience in deploying digital kiosks software, hardware, and other technologies around the country. PJ Thelen Chief Executive Officer Mr. Thelen has 25+ years of leadership experience servicing the IT industry in hardware, software, and services. Prior to joining Rove iQ, Mr. Thelen was President of Sunrise Technology (a division of the Kroger grocery chain), an innovative company that developed strategic technologies like Edge (an interactive digital smart shelf system) and Gen 3 Zooter (a powerful device that tracks merchandising programs, improves inventory management, and analyzes customer engagement trends by leveraging video analytics, automation, and machine learning. Steven McFarland Vice President of Client Relations Mr. McFarland has coordinated the majority of Rove iQ’s projects and is responsible for making sure that all parties are working toward deadlines together, and are organized to complete tasks. CJ Dyas Product Designer Mr. Dyas assists in the design of the User Interface and Experience from the moment it's sketched out on paper, until its being used by residents and visitors of the city. After installation, Mr. Dyas is responsible for designing new features, modifying existing features, and making adjustments to the User Experience based on user behavior and feedback. Annika Synnestvedt Customer Success Manager Ms. Synnestvedt focuses on the importance of customer satisfaction, continual service improvement, and the value of data analytics. 9 MEET ROVEiQ KEY PERSONNEL | Santa Monica Team 8.A.f Packet Pg. 400 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Santa Monica Success Ambassador BIG Outdoor will dedicate full-time staff to interface directly with the City for all communications. This will be a community member who’s intimately familiar with the neighborhoods, the community, and the unique businesses that define it. The job will be to work closely with these businesses –to bring them into the program and make it work for them. Director of Operations/Field Operations Associates BIG Outdoor will hire full-time employees to interface directly with incoming maintenance calls from field techs and community members. The job will be to work closely with the Field team to ensure the displays are clean and operational. If notified by city staff, community members, or if BIG Outdoor cannot resolve remotely, the field tech can be on site immediately and determine if any additional maintenance or repairs are needed. 10 MEET BIGOUTDOOR KEY PERSONNEL | Santa Monica Dedicated Team Currently recruiting a full-time staff that will be based in Santa Monica. 8.A.f Packet Pg. 401 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) QUALIFICATIONS 11 8.A.f Packet Pg. 402 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) QUALIFICATIONS Dallas, TXDallas, TX 12 8.A.f Packet Pg. 403 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) QUALIFICATIONS 13 Austin, TX 8.A.f Packet Pg. 404 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) QUALIFICATIONS North Hollywood, CAManhattan Beach, CA 14 8.A.f Packet Pg. 405 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) QUALIFICATIONS Miami, FLIrvine, CA 15 8.A.f Packet Pg. 406 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) QUALIFICATIONS New York City, NYWest Hollywood, CA 16 8.A.f Packet Pg. 407 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) One of our most cherished case studies is BIG Outdoor’s longstanding partnership with Macerich at Santa Monica Place (SMP). It’s a great example of our 360°Partnership approach in action. BIG Outdoor took over sales operations for three static signs and nearly doubled the sales revenues of the previous operator. Working closely with Macerich and SMP tenants –to explore ways to engage the public and promote their retail businesses –led to ever bigger trust and success: •In 2013, we began selling static signs at SMP. We built a state-of-the-art digital sign. BIG Outdoor more than doubled sales revenue on the static signs, prompting Macerich to expand our partnership, & our success with that asset led to the development of the first large-format digital display on the West Side of Los Angeles in 2016. •In 2019, we expanded our SMP digital network again, with 4 full-motion digital displays. •The BIG Outdoor team consistently overdelivers on annual projections. An important ingredient to this success is real, hands-on, grassroots collaboration with the retail tenants—to understand their needs and find affordable, high-impact advertising opportunities for them. We at BIG Outdoor are extremely proud of the SMP partnership, which helped shape (and serves as a model for) our 360°approach to other partnerships. QUALIFICATIONS CASE STUDY | Santa Monica Place 17 8.A.f Packet Pg. 408 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) QUALIFICATIONS PUBLIC/ PRIVATE | Collective Partnerships 18 SAN DIEGO 8.A.f Packet Pg. 409 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Gas Lamp District Kiosk Program | February 2022 | 219 COMMUNITY ENGAGEMENT 8.A.f Packet Pg. 410 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) •Full-time program ambassador, based in Santa Monica. BIG Outdoor will dedicate a full-time employee to interface directly with the City for all communications. This will be a community member who’s intimately familiar with the neighborhoods, the community, and the unique businesses that define it. The job will be to work closely with these businesses –to bring them into the program and make it work for them. •High standards for advertising content –strictly maintained at all times. Agencies & Advertisers City of Santa Monica COMMUNITY ENGAGEMENT BIGOUTDOOR | 360°Partnership Local Business & BIDs Residents 20 •Discounted local sales program •10% free screen time •BIG Outdoor is a member of the Santa Monica Chamber of Commerce •Intelligent, easy-to-use wayfinding software 8.A.f Packet Pg. 411 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) COMMUNITY ENGAGEMENT CONSULTINFORM INVOLVE COLLABORATE EMPOWER •public safety and Emergency alerts •wayfinding •safe shelter •social services •311 •local business list •local events •photo booth •social media •polling •feedback •surveys •workshops •community service activities •art & culture •job board •funding for various civic projects •ADA compliant •multilingual 21 8.A.f Packet Pg. 412 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Gas Lamp District Kiosk Program | February 2022 | 222 KIOSK CONCEPTS & FEATURES 8.A.f Packet Pg. 413 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) KIOSK CONCEPTS & FEATURES Concepts 2 8.A.f Packet Pg. 414 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) KIOSK CONCEPTS & FEATURES Additional Concepts 24 8.A.f Packet Pg. 415 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) KIOSK CONCEPTS & FEATURES 25 8.A.f Packet Pg. 416 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) KIOSK CONCEPTS & FEATURES 26 8.A.f Packet Pg. 417 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) KIOSK CONCEPTS & FEATURES 27 8.A.f Packet Pg. 418 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) KIOSK CONCEPTS & FEATURES 28 8.A.f Packet Pg. 419 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) KIOSK CONCEPTS & FEATURES Proven Hardware Extreme Sustainability •100% RoHS compliant •No air conditioning, no refrigerants (CFCs or freon) •No disposable air filters necessary •Made from 95%+ recyclable materials1 Industry Leading Reliability •Highest reliability/longevity in the industry •99%+ uptime based upon nearly 30,000 digital faces deployed in outdoor environments globally •Best in class remote monitoring and management •BoldVu (formerly LG-MRI) hardware is the most reliable in the industry 25-50% less power consumption than the competition •Average Monthly Power Consumption: 730 (kWh/mt) •Average Yearly Power Consumption: 8,760 (kWh/yr)Endless Options With many hardware designs and software options available Santa Monica can create the right solution for the community. 29 With many hardware designs and software options available, Santa Monica has the opportunity to choose the right design for the community 8.A.f Packet Pg. 420 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) KIOSK CONCEPTS & FEATURES Digital Kiosk Hardware Features 30 Thermal Management •Multi-patented, dual-loop thermal management system keeps components sealed from exposure to ambient air and contaminants. •Ensures full performance in ambient environments of temperatures between -40°C~50°C (-40°F~122°F). •No air filters, resulting in less periodic maintenance. Outdoor Proofing •Vandal resistance Anti-Reflective (AR) treatment on both sides of glass minimizes haze and reflection. •Stainless steel and powder-coated aluminum protect against vandalism, rust, and salt-air corrosion. •Design consistent with IP66 standards. Image Optimization •Ultra 4K Definition Support. •Optimal image quality in all lighting conditions. •Improves color saturation and contrast. •Dynamically adjust level, gamma values, and backlight luminance. •Reduces backlight power consumption and heat generation, extends backlight life. Video Verification •Real-time hardware monitoring of every video frame to ensure proper playback. •Abnormal behavior is addressed via automatic power cycle on the media player. Energy Monitoring •Monitors line current and voltage to report on power consumption. •Dynamically sheds power load to prevent tripped circuit breakers when available power fluctuates. Enduring Luminance •Maintains specified luminance for 10 years, without fading over time. •Auto-brightness adjustment based on geolocation firmware, adjusting brightness based on time of day. •Maximum Brightness: 3,500 nits 8.A.f Packet Pg. 421 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) The kiosk has multiple templates you can choose to manage its two modes of operation, which simultaneously reinforce the City’s brand as a premier destination while actively engaging the public. These operation modes effectively mix interactive and commercial messaging. KIOSK CONCEPTS & FEATURES Platform | Operational Modes 31 Passive Mode (Loop) This is the default mode of operation when someone is not interacting with the kiosk. The screen rotates advertising, City messages, and information about upcoming events in full- screen display. Loop timing can be programmed. Kiosk users can access City ads and/or revenue-generating ads. 8.A.f Packet Pg. 422 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) The kiosk has multiple templates you can choose to manage its two modes of operation, which simultaneously reinforce the City’s brand as a premier destination while actively engaging the public. These operation modes effectively mix interactive and commercial messaging. KIOSK CONCEPTS & FEATURES Platform | Operational Modes 32 Engagement Mode (Interactive) Once someone touches the screen, the ad loop disappears (or shifts to the top of the screen depending on the template you select) and the interactive applications appear with options similar to a smartphone experience. 8.A.f Packet Pg. 423 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) KIOSK CONCEPTS & FEATURES Software Platform Use Cases SEARCH FOR BUSINESSES WAYFINDING EMERGENGY & SAFETY TOUCH ENABLED 33 8.A.f Packet Pg. 424 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) AUGMENTED REALITY SELFIES KIOSK CONCEPTS & FEATURES Software Platform Use Cases WEATHERLOCATE PUBLIC TRANSIT/MICRO MOBILITY MULTILINGUAL 34 AUGMENTED REALITY SELFIES 8.A.f Packet Pg. 425 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Shop Find a new dress,a gift,or arts and crafts.Shop brings users to the nearest store right for them! Dine Find the perfect date night location or a quick bite to eat during your break. Dine helps users satisfy their taste buds! Stay Stay brings users to hotels and Inns throughout the city to sleep peacefully! Search The entire city, right at your fingertips! Search lets users find anything they need. Selfie Augmented Reality Selfie Filters help users capture moments to last a lifetime and send it to their phone. Transit View bus schedules and live arrival estimates by pinging local transit APIʼs and bringing to one screen. Weather View a local dynamic weather forecast that updates in real time so youʼre never caught in the rain! Events View upcoming city-wide events, concerts, block parties and more as they are announced! Activities Find a movie theater, golf field, or an arcade to enjoy with a group or solo! Maps Intelligent, intuitive and artistic; this is way-finding reimagined. The heart of Rove iQ is its industry leading wayfinding application. Amenities Find public restrooms, ATMs, public parks and more! KIOSK CONCEPTS & FEATURES Community Apps –Completely Customizable 35 Service From banking to auto repairs, Service provides users with directions to get the help that they need! 8.A.f Packet Pg. 426 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) COMMUNITY ENGAGEMENT A Commitment to Universal Design & Personal Custom Interface ACCESSIBILITY The kiosks will be public resources—and that means they need to be easy to use for everyone. Our platform is designed for everyone to enjoy the same ease of use. •Partner with Disability Community Resource Center (DCRC) •Universal Design for easy-to-use functionality •Wayfinding curated specifically for people with mobility challenges •User buttons are accessible to all •Toggle contrast and font size 36 8.A.f Packet Pg. 427 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) FIELD TECH APP CLEAN & SAFE APP SERVICE TICKETS/ WORK ORDERS KIOSK CONCEPTS & FEATURES Maintenance Program 37 8.A.f Packet Pg. 428 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) THANK YOU •Collaborate with community members and key stakeholders •BIGOUTDOOR has already began speaking to dozens of local businesses and non-profits •BIGOUTDOOR’s dedicated Santa Monica based staff will consist of community members who directly engage with city staff, residents, businesses and stakeholders. •BIG’s Dedicated & Focused Team of software developers, exclusive project management and maintenance staff, content designers, media team and community ambassadors. •Customizable designs •Hardware & software interface will be fully customized and upgraded throughout the franchise term •Input from key stakeholders and city staff is critical for this program to be a success •Financials •Signing bonus upon execution •Guaranteed annual payments •50/50 Percentage revenue share (greater of guaranteed rent) •Dedicated city messaging on displays as well as unsold time •2% of BIGOUTDOOR’s annual revenue received from franchise agreement to fund additional city projects/initiatives 38 8.A.f Packet Pg. 429 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins)) Staff Recommendation Adopt a Resolution of Intent declaring the Council’s intent to hold a public hearing on November 15, 2022 to award a franchise to BIG Outdoor for the installation, operation, and maintenance of a digital wayfinding and out-of-home advertising kiosk network, per the terms and conditions stated in the resolution. 8.A.f Packet Pg. 430 Attachment: PowerPoint Presentation (5470 : Resolution of Intent to Award OOH Kiosk Franchise (60 mins))