Based upon the foregoing, the Interim City Manager recommends that the Mayor and City Commission waive, by a 5/7^ths vote, the formal competitive bidding requirement, as permitted in Section 2-367(e) of the City Code, as being in the best interest of the City, and approve, in substantial form, the draft Professional Services Agreement with OUTFRONT, a copy of which is attached hereto, so the City may continue to generate revenues from the City trolley advertising services provided by OUTFRONT, until such time as a new agreement for similar services may be executed pursuant to the ITN; and further authorize the Interim City Manager to finalize and execute the Professional Services Agreement with OUTFRONT.

On August 18, 2011, the City of Miami issued a Request for Proposal 272271 to secure a firm to execute trolley advertising services. Upon receiving proposals the City of Miami, via Resolution R-13-0501, executed a Professional Services Agreement for Trolley Advertisement Program Services for the City of Miami with Van Wagner Miami, LLC (“Van Wager”), with an effective contract date of March 20, 2014, with an initial term of two (2) years, with the ability to extend the contract for up to four (4) additional one (1) year periods.

In 2014, Van Wager sold its outdoor advertising division to CBS, now known as OUTFRONT Media Group, LLC (“OUTFRONT”). In 2018, the City of Miami Beach Office of Marketing and Communications was tasked with finding alternate revenue streams for the City, and at the July 13, 2018 City of Miami Beach Finance and Citywide Projects Committee budget briefing meeting, multiple options were presented to the Committee as alternative ways to generate revenue for the City of Miami Beach including various advertising and sponsorship opportunities.

At the September 14, 2018 Finance and Citywide Projects Committee meeting, the City's Office of Marketing and Communications presented options for additional sources of revenue generation throughout the City including (1) advertising on the City trolleys, (2) large-scale sponsorships, including naming opportunities for certain City-owned facilities, including the Miami Beach Convention Center, and (3) advertising on the rear exterior façade of the City’s Fleet Management building on Terminal Island.

At the September 14, 2018 Finance and Citywide Projects Committee meeting, the Committee voted to direct the Administration to obtain trolley advertising services via a “piggyback” agreement with the City of Miami’s existing agreement with OUTFRONT.

On September 26, 2018, the Mayor and City Commission adopted Resolution No. 2018-30518, approving an authorizing the City Administration to obtain advertising services for the City’s trolleys from the City of Miami trolley advertising contract with OUTFRONT.

On December 14, 2021, the City of Miami executed a contract extension with OutFront Media, to extend the existing service agreement through to May 9, 2022. After realizing the contract had expired, the City of Miami Beach Office of Marketing and Communications reach out to OutFront Media on August 3, 2023, to request to continue their piggyback agreement between the City of Miami and OUTFRONT, but OUTFRONT was unable to agree to the terms of the piggyback agreement as the new agreement with the City of Miami had a large lump sum payment up front, which OutFront Media was unable to agree to with the City of Miami Beach. With the business terms not being identical to the City of Miami agreement, a piggyback agreement was no longer viable.

On February 23, 2024, the City of Miami Beach issued an ITN No. 2024-008-ND to Secure Municipal Circulator Services, to include trolley advertising, with a closing date of May 10, 2024, and in the interim, the City needs to execute a bridge agreement with OUTFRONT to outline the business terms for trolley advertising as outlined in the draft PSA agreement attached.

This proposed Agreement will continue with the existing business terms of the expired agreement, but with the removal of alcohol as an allowable category.

For the years 2021, 2022 and 2023 combined, Alcohol Advertising on Miami Beach trolleys totaled of sum of $130,251, as outlined below:

2023

Total Trolley Advertising Revenues (incl. alcohol) - $281,249

Total Alcohol Trolley Advertising Revenues - $87,001 (31% of total revenues)

1. Anheuser Busch $55,000
2. Villa Maria Wines $10,000
3. Buzz Balls  $22,001

 2022

Total Trolley Advertising Revenues (incl. alcohol) - $179,166

Total Alcohol Trolley Advertising Revenues - $43,250 (24% of total revenues)

Alcohol Advertising

1. Palm Bay International MOSCATO WINES - $43,250
   

 2021

Total Trolley Advertising Revenues (incl. alcohol) - $250,610

Total Alcohol Trolley Advertising Revenues - $0 (0% of total revenues)

The majority of alcohol advertising sales have taken place during the holiday season (November, December and January) or during May, which aligns with F1.

The Administration recommends that the Mayor and City Commission waive, by a 5/7ths vote, the formal competitive bidding requirement, as permitted in Section 2-367(e) of the City Code, as being in the best interest of the City, and approve, in substantial form, the draft Professional Services Agreement with OUTFRONT.

LOBBYIST DISCLOSURE
In accordance with Resolution No. 2023-32857, adopted by the City Commission on December 13, 2023, the following information has been provided by the Administration as it relates to the subject resolution:

1. Was the Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

2. If so, specify name of lobbyist(s) and principal(s): Not Applicable