2012-3771 Ordinance ORDINANCE NO. 2012-3771
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA AMENDING THE CODE OF THE CITY OF MIAMI
BEACH, BY AMENDING CHAPTER 82, "PUBLIC PROPERTY," ARTICLE IV,
"USES IN PUBLIC RIGHTS-OF-WAY," DIVISION 6, "PROHIBITED SIGNS
OVER PUBLIC PROPERTY," SECTION 82-414 "PERMITTED SIGNS,
SHELTERS AND ADVERTISING IN PUBLIC RIGHTS-OF-WAY", TO PERMIT
ADVERTISING ON BICYCLE RENTAL KIOSKS AS PART OF A CITY BIKE
SHARING PROGRAM; PROVIDING FOR CODIFICATION, REPEALER,
SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, the City Commission has determined that it is in the best interests of
the City to support the City's bicycle rental and sharing program allowing the placement
of bicycles and bike sharing facilities in the public rights-of-way of the City; and
WHEREAS, the bicycle rental kiosks included in this program are proposed to
include advertising to generate revenue to support the cost of the bicycle sharing
program, and for other purposes; and
WHEREAS, it is necessary and appropriate to amend the section of the City
Code granting authority for signs associated with public facilities in the public rights-of-
way.
WHEREAS, the City Commission finds that this amendment is necessary in
order to accomplish the above.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA.
SECTION 1. Section 82-414, "Permitted signs, shelters and advertising in public rights-
of-way," of the Land Development Regulations of the Code of the City of Miami Beach,
Florida is hereby amended as follows:
Sec. 82-414. Permitted signs, shelters and advertising in public rights-of-way.
Notwithstanding any other prohibitions in this Code to the contrary, the city may
place, or contract to place, directory signs and bus shelters in the public rights-of-way,
or bicycles and bicycle rental kiosks as part of a city-sponsored bicycle rental and
sharing program, with advertising thereon. Such signs, shelters, bicycles and bicycles
rental kiosks shall be subject to all applicable permitting requirements and design
reviews as provided for in the Land Development Regulations.
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i
SECTION 2. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is
hereby ordained that the provisions of this ordinance shall become and be made part of
the Code of the City of Miami Beach, Florida. The sections of this ordinance may be
renumbered or relettered to accomplish such intention, and the word "ordinance" may
be changed to "section", "article", or other appropriate word.
SECTION 3. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are hereby
repealed.
SECTION 4. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect ten days following adoption.
PASSED AND ADOPTED this 18th day of July , 20 2.
MAYOR
AT ,.,E3
J APPROVED AS TO
CITY CLERK :i►vcoRP oRarEO
FORM & LANGUAGE
& FOR EXECU ION
First Reading: Cy 26'"
Second Readin �� 1 Z
Ci rney� iate
Verified by:
Richard G. Lorber, AICP, Acting Planning Director
Underscore denotes new language
StFikethMugh denotes deleted language
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COMMISSION ITEM SUMMARY
Condensed Title:
Amendment of the City Code Chapter 82, "Public Property," Article IV, "Uses in Public
Rights of Way," Division 6, "Prohibited Signs Over Public Property," Section 82-414
"Permitted Signs, Shelters and Advertising in Public Rights-of-way", to permit advertising on
bicycle rental kiosks as part of the City Bike Sharing Program.
Key Intended Outcome Supported:
Enhance mobility throughout the City.
Supporting Data(Surveys, Environmental Scan, etc.):
16.8 % of residential respondents indicated that they would be willing to use bicycles as
transportation.
Issue:
Shall the City Commission approve the proposed amendment to the City Code allowing
advertising on bicycle rental kiosks of the DecoBike Shared Bicycle Program?
Item Summa /Recommendation:
The Administration recommends that the City Commission adopt the proposed ordinance
upon second reading public hearing.
The City executed a concession agreement with Deco Bike, LLC, for a self service bicycle
rental and sharing program with facilities located in specifically designated public rights-of-
way. The bicycle sharing program now serves as a viable transportation network. As part of
the Agreement, the City currently permits the concessionaire to place limited advertising on
the bicycle baskets (through a Bike Basket Sponsorship Program). Section 138-73 of the City
Code prohibits general advertising signs. This prohibition is an important component of the
City's regulations governing aesthetic considerations, and prevents billboards and similar off-
site advertisements from proliferating throughout the City. The City has allowed limited
advertising in the public right-of-way as a means of offsetting the costs associated with
providing needed public facilities such as bus shelters and benches (city-wide) and directory
signage (on Lincoln Road).
This amendment will allow the City to permit general advertising signs on the bicycle rental
kiosks included in the City's bicycle rental and sharing program. In accordance with Charter
Section 5.02, the City shall consider the long term economic impact of proposed legislative
actions, the proposed Ordinance would have the potential to increase revenues by $288,000
in advertising revenue over the initial five (5) year term.
Advisory Board Recommendation:
N/A
Financial Information:
Source of Amount Account Approved
Funds:
1 $
OBPI Total $
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Richard Lorber, Planning Department or Gary Held, Legal
Sign-Offs:
Department Director Assistant City Manager City Manager
RL GH JGG el f7K KGB
T:\AGENDA\2012\7-18-12\Decobike Kiosk Advertising u 012 sum.docx
AGENDA ITEM RS-5 I 101AMIBEACH
® MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfi.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the Citty Lnd n
FROM: Kathie G. Brooks, Interim City Manager 111�4 -
DATE: July 18, 2012 Sec Public Heari n
SUBJECT: Bicycle Rental Kiosk Advertising
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA AMENDING THE CODE OF THE
CITY OF MIAMI BEACH, BY AMENDING CHAPTER 82, "PUBLIC
PROPERTY," ARTICLE IV, "USES IN PUBLIC RIGHTS-OF-WAY,"
DIVISION 6, "PROHIBITED SIGNS OVER PUBLIC PROPERTY,"
SECTION 82-414 "PERMITTED SIGNS, SHELTERS AND
ADVERTISING IN PUBLIC RIGHTS-OF-WAY", TO PERMIT
ADVERTISING ON BICYCLE RENTAL KIOSKS AS PART OF A CITY
BIKE SHARING PROGRAM; PROVIDING FOR CODIFICATION,
REPEALER, SEVERABILITY AND AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the proposed
ordinance upon second reading public hearing.
BACKGROUND
At the July 13, 2011 Commission meeting a discussion regarding DecoBike advertising
was held. The item was referred to the Finance and Citywide Projects Committee to
discuss a) determination of financial need to ensure program is successful; b) look at
alternatives if advertising is not an option; c) bring back first reading ordinance at the
September Commission Meeting; and d)conduct regional meetings.
The proposal by Deco Bike to allow advertising on the kiosks was discussed at
numerous committees and public meetings including the Miami Beach Visitor and
Convention Authority(8/22/11), the Transportation and Parking Committee (9/12/11), the
Ocean Drive Association (9/13/11), the Mayor's Blue Ribbon Bikeways Committee
(9/22/11), and two specially advertised community workshops, one at City Hall on 9/7/11
and another at the North Shore Park Youth Center on 9/12/11.
The Planning Department showed each group large images of the three options for size
and scale of advertising panels on the existing Deco Bike kiosks. They explained that if a
policy decision is made to permit advertising on the kiosks, it could be limited to
locations in commercial districts.
A majority of persons who spoke at these meetings were opposed to any type of
advertising on the Deco Bike kiosks. The most common reasons stated were aesthetics
and that it could open a Pandora's Box of advertising in other locations in Miami Beach.
Many people questioned whether it was premature to make this proposal since the bike
City Commission Memorandum
Bicycle Rental Kiosk Advertising
July 18, 2012 Page 2
sharing program had only been in operation for 6 months at that time. Some individuals
stated that the matter should be reconsidered after one year of operation and after the
City audits the books to verify whether advertising revenue is necessary to make the
program financially viable.
April 19, 2012 Finance & Citywide Projects Committee
At the April 19, 2012 Finance and Citywide Projects Committee meeting, the results of
the Finance Department's analysis of DecoBike's financial statements were presented to
the Committee, with the recommendation that advertising revenue would be needed in
order to maintain the financial stability of the bike sharing program. The Committee
recommended approving advertising for the bicycle rental kiosks.
City Commission First Reading
At the June 6, 2012 City Commission meeting, the Commission approved this proposed
ordinance upon first reading, but with a referral back to the Finance and Citywide
Projects Committee prior to second reading, to explore if there were any other funding
options other than advertising to subsidize the program.
June 28, 2012 Finance & Citywide Projects Committee
On June 28, 2012, the Finance and Citywide Projects Committee discussed the matter
further, and concluded that there were no other viable funding mechanisms to subsidize
the bike sharing program, and recommended that the Commission adopt the proposed
ordinance.
ANALYSIS
Concession Agreement Review and Proposed Modifications
DecoBike, LLC, entered into a concession agreement with the City dated July 15, 2009
in response to RFP 44-07108 for the delivery and operation of a self-service bicycle
rental fleet for public use to be stationed in the public right of way. DecoBike began
operation March 14, 2011, and currently operates a total of 83 stations with 850 bicycles.
There are still 27 stations remaining to be implemented over the next 3 months. As of
March 2012, there were 2,380 members.
The DecoBike program has had a tremendously positive impact on the community. It
has logged in excess of 815,000 rides and their bike fleet journeyed more than
2,444,000 miles. By utilizing DecoBike instead of an automobile for local trips, their
members and visitors burned over 89,000,000 calories and reduced the city's CO2
emissions footprint by 2,400,000 pounds.
During the initial period of operations from January 2011 through December 2011
financial statements provided by DecoBike and compiled by their accountant, Douglas
N. Rice, CPA,PA, reflected an operating loss of approximately $387,561. Their proposed
operating budget for 2012 reflects increased ridership revenue and while the business
still projects an operating loss it has been reduced to approximately $76,500. Revenues
and ridership continue to increase; however, to maintain the equipment and provide the
services that the public has come to expect, the business has a very high ratio of
expense to revenue.
The Administration met with Mr. Bonifacio Diaz, Chief Operating Officer and Mr. Ricardo
Pierdant, President DecoBike, LLC. to review the current financial statements and
contract terms of the existing concession agreement in the context of current operations.
It is clear that, without intervention by the City through contract term modification or an
City Commission Memorandum
Bicycle Rental Kiosk Advertising
July 18, 2012 Page 3
additional revenue source, this program will not achieve a return of capital or modest
profit to the operator or to the City over the long term.
Over the past few months, the Administration has worked with Mr. Diaz to develop a
revised pro-forma that would achieve a sustainable financial model which provides a
return to the City, and return of capital along with a modest profit to DecoBike over a ten
year period.
In order to provide sufficient revenue to sustain the DecoBike operation, it is proposed to
allow 40 kiosks to display advertising. It is expected that 40 kiosks will generate annual
net revenue of $211,200 per to the concessionaire after deducting City's share, $57,600
and a 50/50 split of the balance with the advertising company. If the Mayor and City
Commission decides on a policy direction to allow advertising on Decobike kiosks, then
the citywide ordinance prohibiting general advertising signs needs to be amended
accordingly.
Advertising Ordinance Change
Section 138-73 of the City Code prohibits general advertising signs, which are defined in
the code as "any sign which is not an accessory sign or which is not specifically limited
to a special purpose by these regulations." This prohibition is an important component
of the City's regulations governing aesthetic considerations, and prevents billboards and
similar off-site advertisements from proliferating throughout the City.
However, like many other cities throughout the world, the City of Miami Beach has
allowed limited advertising in the public right-of-way as a means of offsetting the costs
associated with providing needed public facilities such as bus shelters and benches
(city-wide) and directory signage (on Lincoln Road). An ordinance was adopted by the
City in 2001, codified at Section 82-414 in the City Code, in order to address these
facilities in the public right-of-way, affirming the City's authority to place such signs and
shelters in the public right-of-way with and supported by the associated advertising.
Section 82-414 had previously been amended to permit directory sign kiosks, and in
2010, it was amended to permit advertising on the baskets of the bicycles included in the
bicycle rental program. These amendments, and the currently proposed amendment
adding the bicycle rental kiosks which are part of the City-sponsored bicycle rental
program to the list of permitted advertising on facilities in the public right-of-way funded
through the advertising revenues, are generally legally recognized as a permitted
exception to the ban on general advertising, and thus do not detract from the
ban. However, as the City Attorney's Office has advised in the past, in consultation with
outside counsel, each exception to the general advertising ban adopted by the City
places the ban further at risk of being challenged and possibly invalidated. It is a policy
choice as to whether to allow a further exception in light of this opinion.
The bicycle sharing program now serves as a viable transportation network integrating
with the South Beach Local and Shared Car Program. This proposed ordinance would
further amend Section 82-414 to extend this provision to the bicycle rental kiosks as part
of the City sponsored bicycle sharing program. This amendment will allow the City to
permit general advertising signs on the bicycle rental kiosks included in the City's bicycle
rental and sharing program.
In order to permit advertising to be placed on the bicycle rental kiosks, Section 82-414 of
City Commission Memorandum
Bicycle Rental Kiosk Advertising
July 18, 2012 Page 4
the City code must be amended as follows:
Section 82-414- Permitted signs, shelters and advertising in public rights-of-way
Notwithstanding any other prohibitions in this Code to the contrary, the city
may place, or contract to place, directory signs and bus shelters in the public
rights-of-way, or bicycles and bicycle rental kiosks as part of a city-
sponsored bicycle rental and sharing program, with advertising thereon.
Such signs, shelters, bicycles and bicycles rental kiosks shall be subject to
all applicable permitting requirements and design reviews as provided for in
the Land Development Regulations.
Conceptually, 40 advertisements on kiosks could be acceptable if located in strictly
commercial corridors, not facing any residential areas, with the advertising content
subject to specific review and approval by the City Manager or his designee. DecoBike
advises that their advertising company requires a minimum size of 22"x 48" to generate
the revenue included in the projections.
The current agreement provides that the City reserves the right to impose such
additional requirements for the installation and display of the Advertisements, at any
time, at its sole option and discretion; provided that the City Manager or his designee
shall provide the Concessionaire with written notice of such additional requirements. The
permissible content of the advertisements shall not include firearms, alcohol or tobacco
products, or be of a sexually offensive nature. Additionally, advertisements shall not
promote unlawful or illegal goods, services or activities and shall not contain images or
information that demean an individual or group of individuals on account of race, color,
religion, national origin, ancestry, gender, age, disability or sexual orientation.
FISCAL IMPACT
In accordance with Charter Section 5.02, which requires that the "City of Miami Beach
shall consider the long term economic impact (at least 5 years) of proposed legislative
actions," this shall confirm that the City Administration evaluated the long term economic
impact (at least 5 years) of this proposed legislative action and determined that the
proposed Ordinance would have the potential to increase the revenues available to the
City generated by any proposed bicycle sharing program. It is estimated that
approximately $306,000 in advertising revenue could accrue to the City over the course
of the initial five (5) years of the ten year amended contract.
CONCLUSION
The Administration recommends that the City Commission approve the proposed
ordinance upon second reading public hearing.
TMGENDA\2012\7-18-12\Decobike Kiosk Advertising July 2012 memo.docx
NE THURSDAY,JULY 5,2012 1 13NE
I
MIAMIBEACH
CITY OF MIAMI BEACH
NOTICE OF PUBLIC HEARINGS
NOTICE IS HEREBY given that second readings and public
hearings will be,held by the Mayor and City.Commission
of the City of Miami Beach, Florida, in the Commission
Chambers,3rd floor.City Hall,1700 Convention Center Drive,
Miami Beach, Florida, on WEDNESDAY, July 18, 2012
to consider the following:
10:30 a.m.
Bicycle Rental Kiosk Advertising .
Ordinance Amending The Code Of The City Of Miami Beach,
By Amending Chapter 82, "Public Property," Article IV,
"Uses In Public Rights-Of-Way," Division 6, "Prohibited
Signs Over Public Property,".Section 82-414 "Permitted
Signs,Shelters.And Advertising In Public Rights-Of-Way",
To Permit Advertising On Bicycle Rental Kiosks As Part Of
A CityBike Sharing Program.
Inquiries may be directed to°the Planning Department at
(305)673-7550.
10:40 a.m.
:Ordinance Amending Chapter 10 Of The Miami Beach City
Code Entitled '"Animals," By Amending Section 10-11,
Entitled"Running At Large Prohibited, By Extending The
Pilot Program,Off-Leash Area For Dogs In South Pointe
Park Through-And Including December 31,2012.
Inquiries may be directed to the Parks and Recreation
Department at:(304)673-7730.
INTERESTED.PARTIES are invited to appear at this meeting,
or be,represented-.by an agent, or to express their views
in writing addressed to.the City Commission,:c/o.the City.
Clerk, 1700,Convention.Center:Drive, 1st Floor, City.Hali,
Miami Beach, Florida 33139. Coples.of these ordinances
are available for public:inspection during normal business
hours in the City.Clerk's Office,1700 Convention,Center Drive,
1st Floor, City Hall, Miami Beach, Florida 33139. This.
meeting may-be continued and under such circumstances
additional legal notice would not.be provided.
Rafael E:Granado,City Clerk
City of Miami Beach
Pursuant to Section 286.0105, Fla. Stat.,the City hereby
,advises the public that: if a person decides to appeal
any decision made by the City Commission with respect
to any matter considered at its meeting or its hearing,
such person must ensure that a verbatim record of the
proceedings is.made,which record includes the testimony
and evidence upon which the appeal is to be based.This
notice does not constitute consent by the City for the
introduction or admission of otherwise inadmissible or
irrelevant evidence, nor does it authorize challenges or
appeals not otherwise allowed by law.
To request this material in accessible format, sign
language interpreters, information on access for persons
With disabilities,and/or any accomrrlodation to review any
document or participate in any city-sponsored proceeding,
please contact (305) 604-2489 (voice), (305) 673-7218
(TTY) five days in advance to initiate your-request. TTY
users.may also call 711 (Florida Relay.-Service).
AD#708