2011-27692 Reso RESOLUTION NO. 2011 -27692
A RESOLUTION APPROVING AND AUTHORIZING THE MAYOR
AND THE CITY CLERK TO EXECUTE AMENDMENT NO. 1 TO THE
AGREEMENT BETWEEN THE CITY AND CLEAR CHANNEL
ADSHEL, INC. (CONTRACTOR) TO CONSTRUCT, OPERATE AND
MAINTAIN BUS SHELTER STRUCTURES AND OTHER STREET
FURNITURE THROUGHOUT THE CITY, PURSUANT TO REQUEST
FOR PROPOSALS N
O OSALS O. 107 - 99/00; SAID AMENDMENT
EXERCISING THE CITY'S OPTION TO RENEW THE AGREEMENT
FOR THE FIRST FIVE (5) YEAR RENEWAL TERM, COMMENCING
ON NOVEMBER 1, 2011, AND ENDING ON OCTOBER 31, 2016,
WITH THE OPTION TO RENEW FOR A SECOND FIVE YEAR
RENEWAL TERM, AT THE CITY'S SOLE OPTION AND
DISCRETION; INCREASING THE MINIMUM ANNUAL GUARANTEE
PAYABLE TO THE CITY THROUGHOUT THE TERM; AND
REQUIRING CONTRACTOR TO SUBMIT A PROPOSAL TO THE
CITY FOR THE DEVELOPMENT (OR CONVERSION OF EXISTING,
AS THE CASE MAY BE) OF A TO BE AGREED UPON NUMBER
OF LCD BUS SHELTERS THROUGHOUT THE CITY, WHICH WILL
BE DEVELOPED, DESIGNED, FABRICATED, INSTALLED,
OPERATED, AND MAINTAINED AT CONTRACTOR'S SOLE COST
AND EXPENSE.
WHEREAS, on October 17, 2001, the Mayor and City Commission approved
Resolution No. 2001 - 24650, approving an Agreement between the City and Clear
Channel Adshel, Inc. to construct, operate and maintain bus shelter structures and other
street furniture throughout the City, pursuant to City of Miami Beach Request For
Proposals No. 107 - 99/00, dated October 17, 2001 (the "Agreement "); and
WHEREAS, the initial ten (10) term of the Agreement expires on October 31,
20111; the parties hereby wish to exercise the remaining five (5) year renewal term and,
in consideration therefore, also amend certain terms and conditions of the Agreement;
all as set forth in the attached Amendment No. 1 to the Agreement.
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 approve and authorize the Mayor and City Clerk to execute the
attached Amendment No. 1 to the Agreement between the City of Miami Beach, Florida
and Clear Channel Adshel, Inc. to construct, operate and maintain bus shelter
structures and other street furniture throughout the City, pursuant to City of Miami
Beach Request for Proposals No. 107 - 99/00; said amendment exercising the City's
option to renew the Agreement for the first five (5) year renewal term, commencing on
November 1, 2011, and ending on October 31, 2016, with the option to renew for a
second five year renewal term, at the City's sole option and discretion; increasing the
minimum annual guarantee payable to the City throughout the term; ;and requiring
1
contractor to submit a proposal to the City for the development (on conversion of
existing, as the case may be) of a to be agreed upon number of LCD bus shelters
throughout the City, which will be developed, designed, fabricated, installed, operated,
and maintained at contractor's sole cost and expense.
PASSED AND ADOPTED this (3k day of Jui 2011.
/ /T /'. �� .�/ ___ � '%
atti errera Bo er, Mayor
ATTEST:
FoAcktA
Robert Parcher, City Clerk
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Approving And Authorizing The Mayor And City Clerk To Execute Amendment No. 1 To The
Agreement Between The City And Clear Channel Adshel, Inc. (Contractor) To Construct, Operate And
Maintain Bus Shelter Structures And Other Street Furniture Throughout The City, Pursuant To Request
For Proposals No. 107 - 99/00; Said Amendment Exercising The City's Option To Renew The Agreement
For The First Five (5) Year Renewal Term, Commencing On October 1, 2011, And Ending On September
30, 2016, With The Option To Renew For A Second Five Year Renewal Term, At The City Manager's Sole
Option And Discretion; Increasing The Minimum Annual Guarantee Payable To The City Through Out The
Term; And Requiring Contractor To Submit A Proposal To The City For The Development (Or Conversion
Of Existing, As The Case May Be) Of A To Be Agreed Upon Number Of LCD Bus Shelters Throughout
The City, Which Will Be Developed, Designed, Fabricated, Installed, Operated, And Maintained At
Contractor's Sole Cost And Expense.
Key Intended Outcome Supported:
Maintain City infrastructure. Enhance mobility throughout the community.
Supporting Data (Surveys, Environmental Scan, etc.):
Issue:
Should the Mayor and City Commission Adopt the Resolution?
Item Summary/Recommendation:
The City Commission is requested to approve the attached resolution that renews the current
agreement with Adshel Clear Channel (Clear Channel) for five years, with the option for an
additional five year renewal, to construct, operate and maintain bus shelter structures and
other street furniture throughout the City. The agreement provides for: an increase in the
percent of advertising revenue shared with Clear Channel; an increase in the annual payment
to the City; and, a requirement to provide the City with a proposal for interactive digital
displays in place of the current static advertising in bus shelters. Approval of the agreement
will result in increased revenue for the City. For example, if this agreement were applied to
the 2010 numbers (final revenue of $486,647) the City would have seen an increase of
$143,324.
Advisory Board Recommendation:
Finance and Citywide Projects Committee, May 19, 2011 requested that the negotiated renewal be brought
to them for action.
Financial Information:
Source of Amount Account
Funds: 1
2
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Duncan Ballantyne, Ext. 6163
Sign - Offs:
Department Director • ant City Manager City Manager
FB DB JM
Agenda Item 6 73
T:WGENDA\2011 \7- 13- 11Adshel summary Date 7 -/3-
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www miamibeachfl_gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM. Jorge M. Gonzalez, City Manager
DATE. July 13, 2011
SUBJECT: A Resolution Approving And Authorizing The Mayor And City Clerk To Execute
Amendment No. 1 To The Agreement Between The City And Clear Channel Adshel,
Inc. (Contractor) To Construct, Operate And Maintain Bus Shelter Structures And
Other Street Furniture Throughout The City, Pursuant To Request For Proposals No.
107 - 99/00; Said Amendment Exercising The City's Option To Renew The Agreement
For The First Five (5) Year Renewal Term, Commencing On October 1, 2011, And
Ending On September 30, 2016, With The Option To Renew For A Second Five Year
Renewal Term, At The City's Sole Option And Discretion; Increasing The Minimum
Annual Guarantee Payable To The City Through Out The Term; And Requiring
Contractor To Submit A Proposal To The City For The Development (Or Conversion
Of Existing, As The Case May Be) Of A To Be Agreed Upon Number Of LCD Bus
Shelters Throughout The City, Which Will Be Developed, Designed, Fabricated,
Installed, Operated, And Maintained At Contractor's Sole Cost And Expense.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution to renew the City's agreement with Adshel /Clear Channel for a five (5)
year period with the option to renew for an additional five (5) year period.
KEY INTENDED OUTCOME
Maintain infrastructure and enhance mobility throughout the community.
EXECUTIVE SUMMARY
The City Commission is requested to approve the attached Resolution that renews the current
agreement with Adshel Clear Channel (Clear Channel) for five years, with the option for an
additional five year renewal, to construct, operate and maintain bus shelter structures and other
street furniture throughout the City. The agreement provides for: an increase in the percent of
advertising revenue shared with Clear Channel; an increase in the annual payment to the City;
and, a requirement to provide the City with a proposal for interactive digital displays in place of
the current static advertising in bus shelters. Approval of the agreement will result in increased
revenue for the City. For example, if this agreement were applied to the 2010 numbers (final
revenue of $486,647) the City would have seen an increase of $143,324.
BACKGROUND
The current agreement originated October 17, 2001, extends to October 17, 2011 with the
option for a five -year renewal, and currently covers 100 bus shelters and assorted street
furniture, e.g. bus benches, trash cans. At the May 19, 2011 meeting of the Finance and
Citywide Projects Committee, there was discussion of comparable rates for sharing advertising
revenue, how other cities handle bus shelter advertising, Clear Channel's competitors, elements
of a proposed renewal agreement, and a presentation on Clear Channel's interactive digital
displays in San Francisco.
The Committee:
1. Asked that the deadline to determine renewal be extended from June 1, 2011 to October
1, 2011 and that the negotiated proposal to renew the current agreement be brought to
the full Commission;
2. Recommended that the structures pending construction or capital investment be put in
abeyance until the agreement is renewed; and,
3. Asked that an amendment to the agreement be developed to incorporate the interactive
digital shelters (displays) and is brought back to the Finance and Citywide Projects
Committee.
In summary response: the deadline for the renewal decision has been moved to October 1,
2011; the negotiated resolution to renew the current agreement is attached; no additional
structures or capital investment has been undertaken in the interim; and, the requirement for a
proposal for interactive digital displays by Clear Channel is part of this agreement.
ANALYSIS
Revenue
The following compares revenues generated in the current agreement with the proposed
renewal agreement.
1. Static advertising display annual minimum payment
• Current agreement: $240,000 annually.
• Proposed agreement: $260,000 annually.
2. Static advertising display revenue sharing
• Current agreement: Currently 20% net revenue. 10% net revenue sharing years 1
through 3, 15% net revenue sharing years 4 through 7, and 20% net revenue sharing
years 8 through 10. Year 10 ends October 17, 2011.
• Proposed agreement: 30% upon five year renewal, 35% upon additional five year
renewal if option is exercised.
% Increase
from 2010
Total Current
Static Example Example City
Display Using Using Agreement
Revenue 2010 Annual 2010 Using 2010
Net Revenue Sharing Share % Revenue Payment Revenue Example
Current City Agreement (Years 1
through 10, ending October 17, 2011) 20% $246,647 $240,000 $486,647 0%
Current City Agreement 5 Year Renewal
(Years 11 through 15) 25% $308,309 $240,000 $568,309 17%
Proposed 5 Year Renewal (Years 11
through 15) 30% $369,970 $260,000 $629,970 29%
Proposed Additional 5 Year Renewal
(Years 16 through 20) 35% $431,632 $260,000 $691,632 42%
Term
The renewal is for a five year term with the option for an additional five year term at the City's
sole discretion.
Interactive Digital Displays
Both Clear Channel and the City are interested in exploring the replacement of the static
advertising displays in bus shelters with interactive digital displays. Interactive digital displays
provide both digital advertising as well as the ability for a pedestrian to `interact' with the display
through touch in some way. At their May 19, 2011 meeting, members of the Finance and
Citywide Projects Committee received a presentation from Clear Channel on an award winning
interactive neighborhood game competition on interactive digital displays in San Francisco.
Administration is interested in using the interactive feature as a means to provide public
information such as transit information, event information, directions and maps, public safety —
and, yes, perhaps a South Beach, Mid Beach, and North Beach competition. As far as we know,
Miami Beach would be the first in the nation to incorporate interactive public information on bus
shelter displays.
As the interactive digital displays both generate additional revenue and feature interactive
features that could provide helpful information to tourists, residents, and transit users,
Administration believes that these enhancements may provide value. However, the technology
is very new and whether the City Commission finds it to be appropriate for Miami Beach is yet to
be determined. Thus, the City and Clear Channel will be working to provide the City
Commission with a `hands -on' presentation of an interactive digital display incorporating public
information later this year. If desired by the City Commission, this renewal agreement requires
that Clear Channel will then present the City with a proposal to install these displays in City bus
shelters.
Administrative Recommendation
Administration recommends that the City Commission approve the renewal of the agreement
through the approval of the attached Resolution.
JMG \DRB \sam
T :WGENDA\2011 \7- 13- 11\Adshelmemo
City of Miami Beach - EXHIBIT #1
# Shelter # Location
1 2718 Alton Rd WS 5ft W/O 19 St F/N
2 2720 Dade Blvd. S/S 10' W/O Purdy Avenue
3 2724 Alton Road W/S 60' S/O Lincoln Road
4 2728 Alton Rd ES 50 ft. N/O 16 Street F/S
5 2730 Alton Road E/S 20 ft. N/O 15 Street
6 2732 Alton Road E/S 50 ft. N/O 14 Street
7 2734 Alton Road W/S 50 ft. N/O 14 Street
8 2736 Alton Road E/S 75 ft N/O 11 Street
9 2738 Alton Road E/S 70 ft N/O 10 Street
10 2740 Alton Road W/S N/O 8 Street
11 2742 Alton Road E/S N/O 8 Street
12 2745 West Av WS 10 ft N/O 9th Street F/N
13 2746 Mac Arthur Cswy NS 250ft W/O Bridge Rd F/E
14 2748 MacArthur Cswy SS 115 ft E/O Terminal Isle
15 2754 Alton Road E/S 20' S/O 2 Street
16 2758 5 Street SS 50 ft. W/O Lenox Ave
17 2760 5 Street NS 45 ft W/O Lenox Av
18 2762 5th Street N/S E/O Michigan Avenue
19 2764 5th Street S/S E/O Michigan Avenue
20 2768 5th Street N/S 44 ft. W/O Meridian Avenue
21 2772 Washington Av WS 50 ft. N/O 5 Street
22 2774 Washington Av ES N/O 5th Street
23 2776 Washington Av / 7 Street ES
24 2778 Washington Av / 7 Street WS
25 2780 Washington Av / 11 Street (PRIORITY)
City of Miami Beach - EXHIBIT #1
# Shelter # Location
26 2782 Washington Ave W/S 71' N. /O 13 Street
27 2784 Washington Ave W/S 45' N/O 14 Street
28 2788 Washington Ave W/S 200' N/O 16 Street
29 2790 Washington Av WS 50ft S/O 17Th St F/N
30 2792 Washington Av WS 45ft N/O 18Th St F/N
31 2794 Washington Av ES 25ft N/O 18th St F/S
32 2796 Washington Av WS 40ft N/O 21 St F/N
33 2798 Dade Blvd. N/S 10' 300' E/O Washington
34 2800 17 St NS 200ft W/O Washington Av F/E
35 2802 17 St SS 63ft W/O Washington Av F/W
36 2804 17 St NS 20ft E/O Convention Center Dr F/E
37 2806 17 St SS 40ft W/O Pennsylvania Av F/W
38 2808 17 St NS 65ft W/O Meridian Av F/E
39 2814 Collins Avenue WS N/O 18 Street (NEW)
40 2816 Collins Av ES 60ft S/O 22 St F/N
41 2818 Collins Avenue E/S 30' N/O 21st Street
42 2824 Collins Avenue N/O 24 Street ES
43 2826 Indian Creek Drive W/S 200' S/O 41 Street
44 2828 Indian Creek WS 10' S/O 29 Street
45 2830 Indian Creek Drive W/S 50' S/O 43 Street
46 2832 Collins Av WS 40 ft. S/O 44 St F/N
47 2836 Collins Av WS 25 ft. S/0 45 St F/N
48 2838 Collins Av ES 300 ft N/O 47 St F/S
49 2840 Pine Tree Dr ES 50ft N/O 24 St F/S
50 2842 Pine Tree Dr WS 40ft N/O 24 St F/N
51 2844 Collins Avenue E/S 20' N/O 35 Street
1
City of Miami Beach - EXHIBIT #1
# Shelter # Location
52 2848 Collins Av WS 200 ft. N/O 47 St F/N
53 2858 Collins Av ES 2ft N/O 54 St F/S
54 2864 Collins Avenue ES S/O 59 Street
55 2866 Collins Av ES 200ft S/O 65 St F/S
56 2868 Collins Av ES 25ft S/O 69 St F/S
57 2870 Collins Av ES 80ft N/O 75 St F/S
58 2872 Collins Av ES 20ft N/O 79 St F/S
59 2874 Collins Av ES 20ft N/O 83 St F/S
60 2876 Collins Avenue / 87 Street
61 2878 Harding Av WS 50 ft. S/O 75 St F/N
62 2880 Harding Av WS 20 ft. N/O 72 St F/N
63 2882 71 St NS 50ft E/O Dickens Av F/E
64 2886 Normandy Dr NS 50ft E/O Rue Versailles F/E
65 2888 Normandy Dr NS 35ft W/O Trouville Esplanade F/E
66 2890 Normandy Dr NS 75ft E/O West Bay Rd F/E
67 2892 71 St SS 60ft E/O Bearritz Dr F/W
68 2894 71 St SS 70ft E/O Trouville Esplanade F/W
69 2896 71 St SS 50ft E/O Rue Versailles F/W
70 2898 71 St SS 85ft E/O East Bay Dr F/W
71 2902 Abbot Av/ Indian Creek
72 2904 Pine Tree Dr WS 25ftN /O47St
73 2908 41 St N/S 110' W/O Prarie Ave
74 2910 41 Street N/S 10' E/O Alton Road
75 2912 Alton Road E/S 75' N/O 41 Street
76 2914 Alton Road WS 45 ft. N/O North Bay Road
77 2916 Collins Av ES 50 ft N/O 72 St
•
City of Miami Beach - EXHIBIT #1
# Shelter # Location
78 2958 41 Street S/S 140' W/O Prairie Ave
79 3200 Mac Arthur Cswy NS 75ft W/O Palm Island F/E
80 3250 Washington Ave W/S 60' N/O 9th Street (replacement for 2780)
81 3270 17 Street W/O Lenox Avenue (NEW)
82 3290 Pine Tree W/S 20' N/O 25 Street (NEW)
83 3300 Collins Avenue N/O 24 Street WS (NEW)
84 3310 Sheridan Av 100 ft N/O 26 Street
85 3320 Indian Creek Drive N/O 37 Street (NEW)
86 3326 Collins Av ES 29 ft. N/O 28 Street
87 3340 Pine Tree ES 39 ft. S/O 51 Street
88 3370 Indian Creek W/S N/O 65 Street -HIGH PRIORITY (NEW)
89 3394 Collins Av ES 5/O 77 Street (NEW)
90 3400 Collins Ave ES N/O 81 St F/S
91 3410 Collins Av ES / 85 Street (NEW)
92 3420 8638 Harding Av / 86 St (Stella Maris House) (NEW)
93 3430 77 Street SS E/0 Carlyle
94 2750/51/52/53 Alton Road W/S 100' S/O 2 Street (DOUBLE SHELTER - 2 AD BOXES)
95 3258/59/60/61 Lincoln Road SS E/0 Washington Av (2 boxes -4 faces)
96 3276/77/78/79 20 Street E/0 Bay Road (front of Publix) (four ad boxes)
97 3284/85 Venetian Cwy N/S W/0 Island Avenue
98 3286/87 Venetian Cwy S/S W/0 Island Avenue
99 3380/81/82 Abbot Av WS 160 ft. N/O 69 Street (2 boxes - 3 faces)
100 2860 Collins Av ES /100 ft. N/O 56 Street