Resolution 2021-31644 RESOLUTION NO. 2021-31644
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER, PURSUANT TO INVITATION TO NEGOTIATE NO. 2020-
239-KB, REVENUE SHARING AGREEMENT FOR THE CONSTRUCTION,
OPERATION, AND MAINTENANCE OF BUS SHELTERS AND OTHER
STREET FURNITURE; AND AUTHORIZING THE ADMINISTRATION TO
ENTER INTO NEGOTIATIONS WITH OUTFRONT MEDIA, AS THE SOLE
PROPOSER; PROVIDED, HOWEVER, THAT: 1) THE FINAL NEGOTIATED
AGREEMENT SHALL BE SUBJECT TO THE PRIOR APPROVAL OF THE
CITY COMMISSION; AND 2) IF THE CITY COMMISSION APPROVES THE
AGREEMENT THE PROPOSED BUS SHELTER DESIGN SHALL ALSO BE
SUBJECT TO THE PRIOR APPROVAL OF THE CITY COMMISSION.
WHEREAS, on September 16, 2020, the Mayor and City Commission authorized the
issuance of Invitation to Negotiate (ITN) 2020-239-KB Revenue Sharing Agreement for the
Construction, Operation, and Maintenance of Bus Shelters and other Street Furniture; and
WHEREAS, on October 21, 2020, the ITN 2020-191-ND for Revenue Sharing
Agreement for the Construction, Operation, and Maintenance of Bus Shelters and other Street
Furniture (the ITN") was issued; and
WHEREAS, a voluntary pre-proposal meeting was held on November 4, 2020; and
WHEREAS, on January 7, 2021, the City received one (1) proposal from OUTFRONT
Media Group, LLC; and
WHEREAS, on February 16, 2021, via LTC # 071-2021, the City Manager appointed
the Evaluation Committee (the "Committee"), which convened on February 25, 2021 to consider
the responsive proposal; and
WHEREAS, the Committee was provided an overview of the project, information
relative to the City's Cone of Silence Ordinance and the Government Sunshine Law, general
information on the scope of services and a copy of the OUTFRONT Media Group, LLC
proposal; and
WHEREAS, the Committee was instructed to score the sole proposal pursuant to the
evaluation criteria established in the ITN; and
WHEREAS, after reviewing the sole proposal received by the City, OUTFRONT's
qualifications, and having considered the Evaluation Committee's scoring and commentary,
concur with the Evaluation Committee and find that OUTFRONT is a responsive, responsible
proposer which has the qualifications to undertake work under the ITN.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the recommendation of the City Manager, pursuant to Invitation to
Negotiate No. 2020-239-KB for Revenue Sharing Agreement for the Construction, Operation,
and Maintenance of Bus Shelters and other Street Furniture, and authorizing the administration
to enter into negotiations with OUTFRONT Media Group, LLC, as the sole proposer; provided,
however, that: 1) the final negotiated agreement shall be subject to the prior approval of the City
Commission; and 2) if the City Commission approves the agreement the proposed bus shelter
design shall also be subject to the prior approval of the City Commission.
PASSED AND ADOPTED this /7 day of //Ord% 2021.
ATTEST:
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RAF EL E. GRA ADO, CITY CLERK DX2—Y/1
AN GELBER, MAYOR
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=INCORPORATED.'
APPROVED AS TO
FORM &LANGUAGE
&FOR EXECUTION
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City Attorney
Resolutions-C7 AE
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Raul J.Aguila, Interim City Manager
DATE: March 17,2021
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO INVITATION TO
NEGOTIATE NO. 2020-239-KB, REVENUE SHARING AGREEMENT FOR THE CONSTRUCTION,
OPERATION, AND MAINTENANCE OF BUS SHELTERS AND OTHER STREET FURNITURE; AND
AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH OUTFRONT MEDIA, AS
THE SOLE PROPOSER; PROVIDED, HOWEVER, THAT: 1)THE FINAL NEGOTIATED AGREEMENT SHALL
BE SUBJECT TO THE PRIOR APPROVAL OF THE CITY COMMISSION;AND 2)IF THE CITY COMMISSION
APPROVES THE AGREEMENT, THE PROPOSED BUS SHELTER DESIGN SHALL ALSO BE SUBJECT TO
THE PRIOR APPROVAL OF THE CITY COMMISSION.
RECOMMENDATION
The Administration recommends that the Mayor and City Commission approve the Resolution accepting the City Managers
recommendation to enter into negotiations with the sole bidder, and authorizing the Administration to bring the final negotiated
agreement and,subsequently,the bus shelter design,back to the City Commission for consideration.
BACKGROUND/HISTORY
In October 2001, the City and Clear Channel executed an agreement for Clear Channel to construct, operate, and maintain the
current bus shelter structures on the public rights-of-ways throughout the City(the Agreement). The Agreement resulted in the bus
shelters currently installed on City right of ways and provided for commercial static advertising on the bus shelters with an escalating
revenue sharing agreement with the City. Over the last three years,the City has received an annual average of$644,000 from Clear
Channel,comprised of$260,000 in minimum annual guarantee,plus 30%from the net revenue share.
Five amendments to the Agreement were approved by the City Commission to-date. Most significantly,Amendment No.5, executed
in October 2020, established an Agreement termination date of September 30, 2021, and enabled for transfer of ownership of bus
shelters from Clear Channel to the City(upon expiration or termination of the Agreement). Additionally, Amendment No. 5 reduced
the minimum annual guarantee by 50%(to$130,000);and increased revenue share from 30%to 50%;as a result of financial impact
to Clear Channel due to the COVID-19 pandemic.
Given that the current bus shelters were installed in 2001;are in need of significant maintenance;and the City Commission expressed
a desire to update the current design, at its December 9, 2015 meeting, the City Commission referred an item to the Finance and
Citywide Projects Committee (the Committee) for a discussion on updating the design of the existing bus shelters, for an iconic
design and amenities/enhancements that could help promote transit.
On January 22, 2016, the Committee considered the issue. The Administration had originally recommended issuing a single
solicitation for the design, construction, operation and maintenance of new bus shelters. However, because the Committee
considered the iconic design of the new bus shelters to be of primary importance, it recommended issuing only a solicitation to
engage a firm to come up with a design,with a solicitation for the construction operation and maintenance to be issued at a later time.
At its March 9, 2016 meeting, the City Commission adopted Resolution No. 2016-29325, accepting the recommendation of the
Committee to issue a solicitation for the design of new bus shelters. The Resolution also authorized the City Manager to extend the
existing Agreement on a month-to-month basis until such time as the City could execute an agreement with a firm to construct the
newly designed bus shelters.
On April 13, 2016, the City Commission approved the issuance of Request for Qualifications (RFQ) No. 2016-116-KB for
Architectural and Engineering Design Criteria Professional Services for New Bus Shelters. The RFQ process resulted in the
selection of ACAI Associates, Inc., whose team included the premier design firm of Pininfarina. The City executed a contract with
ACAI Associates, Inc. (with Pininfanna as sub-consultant to ALAI)for new bus shelter designs on July 19, 2017, and the design
effort commenced on October 4, 2017. The resulting bus shelter design developed by the ACAI/Pininfarina team incorporated
features enhancing passengers' transit experience, including innovative designs and technology, and enabled for installation of bus
shelters at more bus stops; particularly at locations in constrained rights-of-way. The ACAI/Pininfarina bus shelter design was
approved by the City Commission, Design Review Board (DRB),and Historic Preservation Board(HPB).
Following approval of the ACAI/Pininfarina bus shelter design, on August 7, 2019, the City issued RFP No, 2019-306-KB for the
construction,operation,and maintenance of the new bus shelter design. The RFP required proposers to submit proposals based on
the approved ACAI/Pininfarina bus shelter design. The successful proposer would bear all costs associated with construction,
operation,and maintenance of the bus shelters,and provide revenue to the City based on advertising proceeds. No responses to the
RFP were received. The primary reason some proposers cited for declining to submit a proposal was the high
manufacturing/construction cost of the ACAI/Pininfarina design.
Staff also held meetings with a number of firms in the bus shelter industry to better understand any design-related concerns,or other
impediments, which may have resulted in the City not receiving any responses to the REP. The issue of the high cost of the
ACAI/Pininfarina design was, once again, the primary concern expressed. Based on industry feedback, City staff worked with the
ACAI/Pininfarina team to consider ways to reduce the construction cost of the approved bus shelter design. As a result, the
ACAI/Pininfarina design was amended to include a number of revisions that could reduce manufacturing costs without impacting the
design.
ANALYSIS
Based on industry feedback, the Administration determined that issuing a new solicitation that provided flexibility for prospective
bidders to bid on the ACAI/Pininfarina design,or suggest an alternative bus shelter design,would be in the best interest of the City.
On September 16, 2020,the Mayor and City Commission authorized the issuance of Invitation to Negotiate (ITN)2020-239-KB for
Revenue Sharing Agreement for the Design, Construction, Operation,and Maintenance of Bus Shelters and Other Street Furniture.
On October 21,2020,the ITN was issued.The ITN also included stand-alone digital Estimated Time of Arrival(ETA)signs,and the
sale of bus shelter advertising space, with the goal of negotiating an agreement that resulted in new and improved bus shelters and
revenue to the City.The ITN allowed bidders to bid on the ACAI/Pininfarina design or suggest an alternative bus shelter design,with
all costs related to design, construction, and installation of the bus shelters and other street furniture to be the responsibility of the
successful bidder.
A voluntary pre-proposal conference to provide information to prospective bidders was held on November 4,2020. Five(5)addenda
were issued. The Department issued bid notes to approximately 10,000 companies utilizing www.bidsync.com website. 92
prospective bidders accessed the advertised solicitation. ITN responses were due and received on January 7, 2021. The City
received one(1)proposal from OUTFRONT Media Group,LLC(OUTFRONT).
On February 16, 2021, the City Manager appointed the Evaluation Committee via LTC #071-2021. The Evaluation Committee
convened on February 25, 2021, to consider proposals received. The Committee was comprised of Tonya Daniels, Director of
Marketing & Communications; Rogelio Madan, Chief of Community Planning & Sustainability, Planning Department; Milos
Majstorovic, Transportation Manager, Transportation and Mobility Department; Nelson Perez-Jacome, City Engineer, Public Works
Department;and Frank Quintana, Deputy Chief Information Officer,Information Technology.
The Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance and the
Govemment Sunshine Law. The Committee was also provided with general information on the scope of services and a copy of the
proposal. The Committee was instructed to score and rank the proposal pursuant to the evaluation criteria established in the ITN.
Attachment "A" to this Commission Memorandum includes the scoring of the sole proposal submitted by OUTFRONT. All
Committee members scored the OUTFRONT proposal with an average score of 93 points.
The Administration finds that although OUTFRONT is not proposing to construct the ACAI/Pininfarina bus shelter design (NOTE:
proposal of an alternative design was permitted under the ITN), it has demonstrated a commitment to work with the City to refine an
alternative bus shelter design that respects the City's original design intent with the prior selection of the ACAI/Pinifarina design.
From a process standpoint,once the City Commission approves and executes a final agreement with OUTFRONT,OUTFRONT will
begin developing the new bus shelter design in close coordination with the City.The new bus shelter design will be presented to the
City Commission for review and approval. If the bus shelter design is approved by the City Commission,OUTFRONT will seek DRB
and HPB approvals. After securing all City approvals, OUTFRONT will commence manufacturing and deployment of new bus
shelters throughout the City in accordance with the executed agreement.
Some of the key elements of the OUTFRONT proposal include the following:
• installation of up to 200 bus shelters (almost double the number of existing bus shelters)and technology components such as
ETA signs at each bus shelter
• digital and static advertisements at bus shelters
• design,construction,operation,and maintenance of new bus shelters would be at no cost to the City
• provides for a high level of maintenance of bus shelters
• allocation of static and digital advertising space for the City's use, and the ability for the City to access 100% of all digital
inventory in case of public emergency
• over a twenty (20) year initial contract term with one, five (5) year optional renewal period, OUTFRONT is proposing a
minimum annual guarantee of $96,000/year, plus escalating annual revenue share from gross advertising revenue from
$300,000 in year 1 to $3.8 million in year 25 of the agreement. The agreement could potentially result in over$56 million in
revenue to the City over the contract term
A summary of the sole proposing firm follows:
OUTFRONT Media Group,LLC
OUTFRONT,with 2019 annual revenues in excess of$1.78 billion,is the country's largest out-of-home media company and currently
operates in 44 US markets and throughout Canada. It is the largest provider of transit advertising services in the United States—45
current transit agency and municipal contracts across which we generated over half a billion dollars in transit advertising revenue in
2019.
OUTFRONT Media Inc is a publicly traded company listed on the New York Stock Exchange under the symbol OUT. It is fully
prepared to utilize its robust balance sheet, positive cash flows and access to capital markets to support all aspects of its proposal
including the annual guarantees described therein. OUTFRONT is proud of its long history in the out-of-home media business citing
that it has never failed to meet any of its contractual obligations and has never defaulted on any municipal or transit agency contract.
OUTFRONT's roots in transit advertising date back 83 years to 1938 when it was first incorporated as Transportation Displays
Incorporated and began providing advertising services to Long Island Rail Road,then a subsidiary of the Pennsylvania Railroad. Its
team of 36 employees in the Miami area was established in 2002 and has consistently been one of the top performing market teams
in North America,delivering consistent revenue growth and exceptional results in service of our existing regional municipal and transit
advertising contracts.
Today, OUTFRONT represents a wide array of municipalities and transit agencies including New York City Transit, Long Island Rail
Road, Metro-North Railroad, Massachusetts Bay Transportation Authority, Washington Metropolitan Area Transit Authority,
Metropolitan Atlanta Rapid Transit Authority, Bay Area Rapid Transit, Los Angeles County Metropolitan Transportation Authority,
Orange County Transportation Authority,CalTrain and Santa Clara County's Valley Transportation Authority,among others.
Regionally, OUTFRONT also represents the City of Miami Beach Trolleys, Miami-Dade County Transit, Miami-Dade County Bus
Shelters,City of Miami Trolleys,City of Miami Bus Shelters, Palm Tran Bus Shelters,and Brightline.
SUPPORTING SURVEY DATA
According to a 2019 Community Satisfaction Survey conducted by ETC Institute, 74% of respondents are satisfied with the City of
Miami Beach Trolley System and 59% are satisfied with the Miami-Dade County bus service. Furthermore, 24% of survey
respondents highlighted bus stop amenities as a factor of dissatisfaction with the trolley service. This project will improve the safety,
convenience, and image of the City's bus stop amenities and as a result, increase the residents'quality of life and satisfaction with
transportation services offered in the City of Miami Beach.
FINANCIAL INFORMATION
CONCLUSION
The existing bus shelters throughout the City were installed by Clear Channel almost twenty years ago,and are in desperate need of
upgrading. The existing contract with Clear Channel will expire no later than September 30,2021.
After reviewing the sole proposal received by the City, OUTFRONT's qualifications, and having considered the Evaluation
Committee's scoring and commentary, I concur with the Evaluation Committee and find that OUTFRONT is a responsive,
responsible proposer which has the qualifications to undertake the work under the ITN.
Some of the highlights of the firm's experience,qualifications,approach,and methodology to project delivery include:
• OUTFRONT has a highly qualified project team with bus shelter operations in Miami-Dade County and City of Miami and
numerous years of experience with bus shelter operation and maintenance.
• OUTFRONT presents a robust approach and methodology to construction, maintenance,and advertising,which includes digital
advertising.
• Preliminary revenue share is significantly higher than in the current Agreement with Clear Channel(potentially over$56 million in
revenue to the City over the contract term not including additional revenue opportunities).
For the reasons stated herein, I recommend that the Mayor and City Commission approve the Resolution authorizing the
Administration to enter into negotiations with OUTFRONT Media Group, LLC as the sole proposer: provided, however,that the final
negotiated agreement and, subsequently, the bus shelter design, shall both be subject to the prior approval of the Mayor and City
Commission.
Applicable Area
Citywide
Is this a"Residents Right Does this item utilize G.O
to Know"item,pursuant to Bond Funds?
City Code Section 2-14?
Yes No
Stratanir r:nnnartinn
Mobility-Increase multi-modal mobility citywide and connectivity regionally.
Legislative Tracking
Transportation/Procurement
ATTACHMENTS:
Description
o Attachment A
Evaluation Committee Relative to Invitation'
to Negotiate(ITN)No.2020-239-KB,for a g
Revenue Sharing Agreement for the 1 Miles MajstorovieaFi Tongs Daniels i Penn-Jerome Pern-Jee I Roselle Madan Y Frank Quintana a 1.OW Y
Construction,Operation,and Maintenance I a Aggregate
otpels�
of Bus Shelters and other Street Furniture
1 Qualitative I Quantitative Subtotal Qualitative Quantitative I Subtad Qualitative 1 Quantitative i Subtotal OuWtaeve QuenMative aubbtel Qualitative Quantitative i SUMorai 1
OUTFRONT Media 95 0 i 95. Lt 90 0 90 1Bfi 0 86 1 95 0 95 1 100 0 100 1 ,` 5 1
• quenoWtrenub
Total ou.mibnr.
OUTFRONT Media"."" o a