Item Coversheet

OLD BUSINESS  5.

COMMITTEE MEMORANDUM

TO: Public Safety and Neighborhood Quality of Life Committee Members


FROM:
Rickelle Williams, Interim City Manager


DATE: June 5, 2024


SUBJECT:

DISCUSS AND TAKE ACTION ON OUTFRONT MEDIA GROUP CONTRACT.


HISTORY:

At the December 13, 2023 City Commission meeting, at the request of Commissioner Kristen Rosen Gonzalez, the Mayor and City Commission (“City Commission”) referred an item (R9 V) to the Public Safety and Neighborhood Quality of Life Committee (“PSNQLC” or “Committee”) to discuss the City of Miami Beach (“City”) contract for bus shelters with Outfront Media Group LLC (“Outfront”) including possible termination.

 

On September 2, 2021, the City Commission adopted Resolution No. 2021-31853 authorizing the City to enter into a revenue-sharing agreement (“Agreement”) with Outfront for the design, construction, operation, and maintenance of bus shelters and other street furniture at designated locations within the City. The Agreement was executed on October 1, 2021 and covers a 20-year term with a 5-year renewal option. The goal of the bus shelter Agreement is to install a minimum of 200 and a maximum of 250 bus shelters throughout the City such that every existing bus stop in the City (currently over 200) will have a bus shelter. The estimated revenue share to the City over a 20-year contract term is estimated between $44 million and $48 million; and between $62 million and $69 million for a 25-year term. The total value to the City, including capital expenditure, revenue share, and operating/maintenance costs, is estimated to be between $82 million (for a 20-year term with 200 shelters) and $119 million (for a 25-year term with 250 shelters). 

 

On May 4, 2022, the City Commission adopted Resolution No. 2022-32156 (Attachment A), approving, in concept, the bus shelter design pursuant to the Agreement with Outfront. Design concept approval was obtained from the Historic Preservation Board (“HPB”) on September 13, 2022, and from the Design Review Board (“DRB”) on November 1, 2022, with the final bus shelter design, including materials and finishes, to be reviewed and approved by Planning Department staff. The bus shelter design concept required additional design and engineering, specifically: 1) manufacturing feasibility design to refine the build/deploy plan; 2) value engineering to meet the program budget; and 3) structural engineering design to meet the requirements of the Florida Building Code. The result of this design refinement for the new “standard” bus shelter is shown on Attachment B. Planning Department staff reviewed and administratively approved the final bus shelter design and determined it was consistent with the design concept previously approved by HPB and DRB. It is worth noting that Outfront has designed three (3) variations of the new bus shelter based on size and amenities (standard, enhanced, and minimal). Furthermore, every bus shelter is anticipated to be equipped with digital “next bus” estimated time of arrival signs, either incorporated as part of the new bus shelter structure or as a stand-alone sign.

ANALYSIS

Pursuant to the Agreement, Outfront shall install a prototype bus shelter for City approval prior to commencing mass production and installation throughout the City. As such, Outfront is in the process of manufacturing the prototype bus shelter, which is proposed to be installed on the west side of Washington Avenue north of Lincoln Road (adjacent to Soundscape Park) by October 2024. The installation of the new bus shelters is anticipated to commence in early 2025 upon City Manager's approval of the prototype. A phasing plan has been developed to ensure a smooth transition between the installation of new bus shelters and the removal of existing bus shelters. The phasing plan is as follows:

 

  • Priority 1: Installation of enhanced shelters at locations with high ridership;
  • Priority 2: Installation of new shelters at bus stop locations without shelters and more than 50 boardings per day;
  • Priority 3: Installation of new shelters at bus stop locations without shelters and fewer than 50 boardings per day;
  • Priority 4: Installation of minimal shelters due to low ridership and/or adjacent single-family land use; and
  • Priority 5: Replacement of the existing bus shelters with new shelters.

 

In compliance with the terms of the Agreement, Outfront anticipates completing the installation of approximately 200 new bus shelters citywide by November 2026.

 

At the April 17, 2024 PSNQLC meeting, the Committee discussed this item and requested the City Administration (“Administration”) to return at a future date with an update on the implementation of the prototype bus shelter.

CONCLUSION:

The outlined schedule for mass production and installation of new bus shelters provides a clear roadmap for the completion of this project. The Administration remains committed to continue collaborating closely with Outfront to expedite the timeline and ensure a smooth and successful execution of this project.


Applicable Area

Citywide
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
Yes No 

Strategic Connection

Mobility - Increase multi-modal mobility citywide and connectivity regionally.
ATTACHMENTS:
DescriptionType
Attachment A – Resolution No. 2022-32156Memo
Attachment B – Rendering of New Standard Bus ShelterMemo
Referral Item R9 V - December 13, 2023Memo