On June 28, 2023, pursuant to RFP No. 2022-040-KB, the City of Miami Beach executed a 30-year agreement with IKE Smart City (the “Agreement”) for the design, manufacture, installation, operation and maintenance of interactive digital media kiosks (“IKE Kiosks”) at designated locations in the City of Miami Beach. 

Since June 2017, when in response to residents' concerns, the Miami Beach United advocacy group submitted a resolution encouraging the City "reject the idea of creating digital kiosks as information sources for tourists and residents," and again with this new iteration of the digital kiosk proposal, there continues to be extremely strong resident pushback against these kiosks.  That should count for something.

• Since 2017, the volume and accessibility of information on the ubiquitous smart devices has only increased exponentially, and therefore the need for such information signage is greatly reduced. 
• Additionally, we already have challenging public right of ways: narrow sidewalks that have to accommodate utilities, signage, alternative modes of transportation, and increasing numbers of pedestrians.  
• Wider public right of ways may also have, in addition to those challenges, sidewalk cafes, planters, host/ess stands, etc. 
• While I appreciate the opportunity for a revenue stream from a portion of the advertising sales on the kiosk, we do not need more commercial visual clutter, especially that which could potentially be pushing out messages contrary to the branding narrative the City wishes to move towards.  For such a small revenue impact, the cost in lack of control of the narrative may be onerous.  The effective visual pollution certainly would be. and in a city where there is so much beautiful architecture and natural beauty to enjoy, downgrading the experience further erodes our brand.

In response to resident concerns, IKE has withdrawn its application to the Historic Preservation Board for placement of any kiosks in the South of Fifth neighborhood.  If it is reasonable to eliminate this type of visual clutter in one neighborhood, why is it not reasonable to eliminate it in every other neighborhood?

Although I commend IKE for listening to the City’s residents and voluntarily agreeing to not install any kiosks in the South of Fifth neighborhood, I would like to discuss this matter further with my colleagues, to consider the possible termination of the Agreement.  Based on direction provided by the City Commission during negotiations with IKE, the Termination for Convenience clause in the Agreement approved by the City Commission cannot be exercised until the sixteenth year following its effective date.

It appears that if the City were to refund the initial $1,000,000 payment made by IKE following the execution of the Agreement, the City would also have exposure on a breach of contract claim of up to $100,000, as the Agreement includes a limitation on the City’s liability of $100,000, for a total of $1.1 million.  As a businessperson and tax paying resident, I am not being cavalier about this significant amount of money.  

Despite all of this, I believe that it may be in the best interests of the City and its residents to terminate an agreement even if there are costs involved for breaching the contract.