Item Coversheet

Resolutions - C7  I




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Alina T. Hudak, City Manager 
DATE:October  13, 2021
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, AND ACCEPTING FOR CONSIDERATION AN UNSOLICITED PROPOSAL, PURSUANT TO SECTION 255.065 OF THE FLORIDA STATUTES, FOR THE MANUFACTURING, INSTALLATION, MAINTENANCE, AND OPERATION OF INTERACTIVE DIGITAL KIOSKS; AND FURTHER AUTHORIZING THE ADMINISTRATION TO PREPARE A COMPETITIVE SOLICITATION FOR THE SAME PROJECT PURPOSE AS THE UNSOLICITED PROPOSAL.

RECOMMENDATION

It is recommended that the Mayor and City Commission accept the unsolicited proposal received by the City, pursuant to section 255.065, Florida Statutes, and authorize the Administration to seek alternative proposals for the same project purpose as the unsolicited proposal for the manufacturing, installation, maintenance, and operation of interactive digital kiosks.

BACKGROUND/HISTORY

The City currently has ten static informational directories on Lincoln Road through an agreement with a contractor since April 18, 2001. This agreement currently is operating on a month-to-month basis terminable by the City, for convenience and without cause, upon thirty days prior written notice to the contractor.

 

On January 11, 2017, the City Commission directed the Administration to issue Request for Proposals (RFP) No. 2017-074-WG for Interactive Digital Media Kiosks. The goal of the RFP was to strategically locate interactive digital kiosks on Lincoln Road, as well as other locations across the City, to assist residents and visitors by providing interactive information on local restaurants and businesses, services, and transit, as well as providing a source of revenue for the City. On March 28, 2017, the City received proposals from Smart City Media, LLC; CIVIC; Smartscapes, LLC; Intersection Parent, Inc.; Sensity Systems, Inc.; and Orange Barrel Media, LLC.

 

The Evaluation Committee convened on December 11, 2017 to consider proposals received. The Evaluation Committee process resulted in the following initial ranking of proposers:

1st ranked - Smart City Media, LLC

2nd ranked - Orange Barrel Media, LLC

3rd ranked - CIVIQ Smartscapes, LLC

4th ranked - Intersection Parent, Inc

5th ranked - Sensity Systems, Inc.

 

At its February 14, 2018 meeting, the City Commission adopted Resolution No. 2018- 30196, approving the City Manager's recommendation to shortlist Orange Barrel Media LLC (" Orange Barrel") and Smart City Media LLC (" Smart City") for further consideration. Smart City and Orange Barrel were required to install a demonstration kiosk on Lincoln Road for approximately thirty (30) days to provide the Mayor and City Commission and the general public the opportunity to interact with and understand the functionality and size of the kiosks.

 

At its July 2, 2018 City Commission meeting, following presentations from the short-listed firms and substantial deliberations and input from members of the general public, the City Commission declined to accept the City Manager' s recommendation to authorize negotiations with Orange Barrel Media; and, should the Administration be unable to successfully negotiate a contract with Orange Barrel Media, authorizing the Administration to negotiate with Smart City Media. Instead, the City Commission rejected all bids received under the RFP. At that time, the general consensus of the City Commission was that the selection and installation of digital kiosks was premature given the upcoming implementation of the Lincoln Road Master Plan and that the technology proposed was rather new and untested.

 

On September 16, 2020, the City Commission approved agenda item C4M which referred to the Finance and Economic Resiliency Committee a discussion on interactive digital kiosks. The referral was deferred a number of times and was subsequently withdrawn on February 10, 2021 from FERC agenda.

ANALYSIS

On August 25, 2021, the Administration received an unsolicited proposal from IKE Smart City, a sister company to Orange Barrel Media, to manufacture, install, maintain, and operate interactive digital media kiosks at certain sites throughout the City.  The proposal includes the manufacturing, installation, operation, and maintenance of the digital kiosks at no cost to the City and provides the City with significant revenue as a share of the revenue the proposer yields from advertising.

 

IKE Smart City currently has digital kiosks installed in 10 markets nationally, including: Baltimore, MD, Cleveland, OH, Coral Gables, FL, Denver, CO, Miami, FL, Tampa, FL, Tempe, AZ, San Antonio, TX, and St. Louis, MO. The firm has also been awarded five additional markets, including: Atlanta, GA, Berkeley, CA, Cincinnati, OH, Detroit, MI, and Houston, TX.

 

Staff has conducted a preliminary analysis of the unsolicited proposal, including the proposed equipment, functionality, and potential revenue. Staff has considered the proposer’s performance on current contracts it has with other municipalities. Based on the information received, staff believes it is prudent to initiate a competitive process, as stipulated in Section 255.065, Florida Statutes, to allow other parties to submit competing proposals for the project.

 

It is important to note that the analysis conducted by staff is very preliminary and only intended to ascertain whether the unsolicited proposal should be considered, and others given an opportunity to submit competing proposals for the project. If the City Commission approves this item, the Administration will prepare an RFP and advertise it in accordance with Florida law. The purpose of the RFP is only to allow other parties an opportunity to submit a proposal that can be compared against the unsolicited proposal received by the City. Once proposals have been received, pursuant to the RFP, all proposals will be fully evaluated. At that time, the City Manager may make an award recommendation to proceed with negotiations with one or more respondents or may make a recommendation to reject all proposals received. The Mayor and City Commission would need to authorize the negotiation process, as well as approve any final contract should this project get to that point.

 

Further, Section 255.065, Florida Statutes, allows the City to charge a fee to any respondent to the RFP to cover the City’s cost of evaluating proposals received, including the unsolicited proposal. At this point, the Administration is unable to determine what if any costs would be incurred and, as a result, is unable to determine the fee that will be charged. However, should the Administration determine that it is necessary to cover certain costs that may be incurred as a result of the evaluation of proposals, Florida law does allow the City to impose the fee at a later point in the process.

 

Finally, the purpose of the proposed RFP is only to advertise that the City has received an unsolicited proposal for this project and allow other parties to submit competing proposals, as required by Florida law. No other action is being proposed at this time.

SUPPORTING SURVEY DATA

N/A

FINANCIAL INFORMATION

Any resulting agreement will be revenue generating. 
Amount(s)/Account(s):

N/A

CONCLUSION

After reviewing staff’s evaluation and reviewing the unsolicited proposal received, I would respectfully highlight the following points. First, the unsolicited proposal does present the potential for significant revenue to be yielded by the City.  Second, the RFP process considered herein does not bind the City in any way and is only a means for receiving competitive proposals for comparative purposes. It is important to note that the implementation of a digital kiosks project is not being proposed at this time – only that the Mayor and City Commission authorize a process by which other parties can submit proposals for the same project purpose as the unsolicited proposal received by the City. The decision to move forward with any project for digital kiosks would require several approvals by the Mayor and City Commission.

 

Therefore, based on the foregoing, I recommend that the Mayor and City Commission of the City of Miami Beach, Florida, approve the Resolution accepting  an unsolicited proposal pursuant to section 255.065 of the Florida Statutes  and authorizing the administration to seek alternative proposals for the same project purpose as the unsolicited proposal for the manufacturing, installation, maintenance, and operation of interactive digital kiosks.

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?
No No 
Legislative Tracking
Public Works/Transportation/Facilities and Fleet/Procurement

ATTACHMENTS:
Description
Resolution