2017-29835 Reso2017-29835
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AWARD OF A COMPETITIVE
SOLICITATION, PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO.
2017 -081 -WG, FOR CITY MUNICIPAL PARKING GARAGE ADVERTISING
SERVICES, TO LAMBDA LAMBDA SIGMA LLC D/B/A ALCHEMY MEDIA ("
ALCHEMY MEDIA"), AS THE TOP RANKED PROPOSER FOR GROUP II,
PARKING GARAGE ADVERTISING TO INCLUDE INTERIORS AND
EXTERIORS; AND FURTHER, AUTHORIZING THE ADMINISTRATION TO
NEGOTIATE AN AGREEMENT WITH ALCHEMY MEDIA, WITH THE FINAL
NEGOTIATED AGREEMENT SUBJECT TO THE ADVANCE APPROVAL OF
THE MAYOR AND CITY COMMISSION.
WHEREAS, at the January 11, 2017, the City Commission approved to issue the
Request for Proposals (RFP) No. 2017 -081 -WG for Parking Garage Advertising Services; and
WHEREAS, on January 25, 2017 the RFP was issued; and
WHEREAS, RFP responses were due and received on March 14, 2017; and
WHEREAS, the City received proposals from City Media Advertising LLC and Lambda
Lambda Sigma LLC DBA Alchemy Media; and
WHEREAS, the Evaluation Committee appointed by the City Manager pursuant to LTC#
138-2017 convened on March 31, 2017, to consider the responsive proposals received;
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; and
WHEREAS, the Committee was also provided with general information on the scope of
services and a copy of each proposal; and
WHEREAS, the Committee was instructed to score and rank each proposal pursuant to
the evaluation criteria established in the RFP; and
WHEREAS, the evaluation process resulted in the ranking of proposers as follows: City
Media Advertising, LLC, as the top ranked proposer for Group I Parking Garage Advertising
Interiors Only, and Lambda Lambda Sigma LLC DBA Alchemy Media, as the top ranked
proposer for Group II, Parking Garage Advertising to Include Interiors and Exteriors; and
WHEREAS, the Mayor and City Commission declined to accept the City Manager's
recommendation to reject all proposals, and authorized the Administration to enter into
negotiations with Alchemy Media, the top-ranked proposer for Group II, Parking Garage
Advertising to Include Interiors and Exteriors, with any final proposed negotiated agreement
subject to the advance approval of the Mayor and City Commission.
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 award of a competitive solicitation, pursuant to Request for
Proposals (RFP) No. 2017 -081 -WG, For City Municipal Parking Garage Advertising Services, to
Lambda Lambda Sigma LLC d/b/a Alchemy Media ("Alchemy Media"), as the top ranked
proposer for Group II, Parking Garage Advertising to Include Interiors and Exteriors; and further,
authorize the administration to negotiate an agreement with Alchemy Media, with the final
negotiated agreement subject to the advance approval of the Mayor and City Commission.
PASSED AND ADOPTED this e4 day of /In l/ 2017.
ATTEST:
Rafael E. Grarado, Citi Clerk
T:WGENDA\2017\4 - April\Procurement Dep
Reso City Municipal Parking Garage Adverti
Philip Levine
g Garage Advertising Services\RFP 2017 -081 -WG
APPROVED AS TO
FORM & LANGUAG!
& FOR EXECUTION
WAM
BEACH
Resolutions - R7 L
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: April 26, 2017
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER TO REJECT ALL PROPOSALS RECEIVED,
PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 2017 -081 -WG,
FOR CITY MUNICIPAL PARKING GARAGE ADVERTISING SERVICES.
RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On May 11, 2016, the City Commission referred to the Finance and Citywide Projects
Committee (the Finance Committee) a discussion item to consider advertising opportunities
within municipal parking garages, provided the advertising is not visible from the right of way,
The Finance Committee discussed this issue at its June 17, 2016 meeting and asked staff to
research the feasibility of advertising within the City's municipal parking garages. The Finance
Committee further discussed the issue at its September 30, 2016 meeting and directed staff to
obtain industry input regarding potential opportunities.
If the City were to approve advertising at specified locations within nine (9) City -owned parking
garages, the City could potentially yield between $136,000 and $300,000 in revenue annually
and could do so in a manner that does not create an overly -commercialized environment.
On November 18, 2016, the Finance Committee recommended issuance of a Request for
Proposals for potential advertising partnerships/opportunities within the City's nine (9) municipal
parking garages.
ITN PROCESS
At the January 11, 2017, the City Commission approved to issue the Request for Proposals
(RFP) No. 2017 -081 -WG for Parking Garage Advertising Services. On January 25, 2017 the
RFP was issued. RFP responses were due and received on March 14, 2017. The City
received proposals from the following firms: City Media Advertising LLC ("City Media") and
Lambda Lambda Sigma LLC d/b/a Alchemy Media ("Alchemy Media").
Page 1217 of 1596
City Media submitted a proposal offering to install advertising within the parking garages and not
visible from the right-of-way. Alchemy Media submitted a proposal for both interior (in
partnership with City Media) and exterior advertising that is visible from the right-of-way.
The Evaluation Committee appointed by the City Manager pursuant to LTC# 138-2017
convened on March 31, 2017, to consider the responsive proposals received. The Committee
was comprised of Marcel Couso, Parking Manager, Parking Department, City of Miami Beach,
Kevin Kinney, Director, Parking Department, City of Coral Gables, James Murphy, Chief of
Urban Design, Planning Department, City of Miami Beach, David Naranjo, CEO, Rock Orange
Marketing Group and Jennifer Seoanes, Marketing Manager, Communications Department, City
of Miami Beach.
The Committee was provided an overview of the project, information relative to the City's Cone
of Silence Ordinance and the Government Sunshine Law. The Committee was also provided
with general information on the scope of services and a copy of each proposal. The Committee
was instructed to score and rank each proposal pursuant to the evaluation criteria established in
the RFP. The evaluation process resulted in the ranking of proposers as indicated in
Attachment A. A brief description of each proposer, as provided in their response to the RFP,
follows.
Citv Media
City Media is a parking facility media specialist that designs, installs and maintains single and
multi -sided print and digital displays at strategic high -traffic locations. They offer their clients the
latest innovations in advertising products from commercial advertising signage to digital
streaming video content. City Media has a highly qualified team of advertising professionals
that are focused on their specific specialty. This allows them to stay on the cutting edge of all
advertising products and technologies.
Alchemy Media
Alchemy Media, and its predecessor company, was founded in Los Angles in 1969 and is
generally considered the world leader in urban street level media. Over the years Alchemy has
expanded its asset base both organically and through highly targeted acquisitions, and now has
more than 2000 Out -Of -Home media assets in the top 20 domestic markets, the U. K and
Canada. Alchemy has achieved this success by partnering with landlords and municipalities; by
addressing the creative needs of advertisers and their agencies with high impact media
vehicles; and by following a consistent plan to steadily grow the base of its media assets to
meet its advertising client's various needs.
CONCLUSION
I have reviewed the proposals received, the results of the evaluation committee process and
the discussions before the Finance Committee on this matter, and find as follows.
On November 18, 2016, the Finance Committee held a discussion regarding the potential for
the City to yield as much as $300,000 annually from interior parking garage advertising not
visible from the right-of-way, and recommended that an item be forwarded to the Mayor and City
Commission for release of an RFP for interior parking garage advertising. At that time, exterior
advertising was not considered. On January 11, 2017, when the Mayor and City Commission
considered the request to approve the issuance of an RFP for interior only parking garage
Page 1218 of 1596
advertising, as a means of generating a significant amount of revenue for the City, the City
Commission gave direction to include exterior advertising as an option for considering further
increasing the significant revenue that could be yielded by the City through garage advertising.
On March 14, 2017, the City, pursuant to the RFP, received proposals from City Media and
Alchemy Media. The proposal submitted by City Media offered to install advertising within the
parking garages and not visible from the right-of-way yielding approximately $100,200 annually.
Alchemy Media submitted a proposal for interior advertising (in partnership with City Media) and
exterior advertising that is visible from the right-of-way. The approximate total to be yielded from
Alchemy Media's proposal for both interior and exterior advertising is approximately $225,000
annually. These figures do not include any percentage of gross advertising revenue that could
be negotiated after selection.
Despite the discussions before the Finance Committee regarding the significant potential for
revenue that could be yielded by the City from these advertising options, the financial proposals
received are significantly lower than anticipated. In addition to what appears to be a relatively
small potential for revenue to be yielded from interior exterior garage advertising, there are the
policy issues regarding signage viewable from the right-of-way that would need to be resolved.
It is important to note that Alchemy Media has proposed signage as large as 16' x 8' that would
be visible from the right-of-way.
Therefore, after reviewing all the submissions, the potential for revenue and in consideration of
the policy issues that would need to be resolved for this project, I recommend that the Mayor
and City Commission approve the Resolution rejecting all proposals received pursuant to
Request for Proposals (RFP) 2017 -081 -WG for Parking Garage Advertising Services.
KEY INTENDED OUTCOMES SUPPORTED
Ensure Expenditure Trends Are Sustainable Over The Long Term
FINANCIAL INFORMATION
Grant funding will not be utilized for this project
Leaislative Trackina
Marketing and Communications/Procurement
ATTACHMENTS:
Description
D Attachment A Scoring Matrix
D Resolution
Page 1219 of 1596
GROUPI
RFP 2017=081 -WG
City Municipal Parking
Garage Advertising Services
City Media Advertising, LLC
Marcel rn
Couso
100 1
Kevin
Kinney
it
94 1
"ATTACHMENT A"
James
Murphy
96
a David a, Jennifer
Naranjo Seoanes
100 1
Low
Aggregate ooa
Totals
1 $100,200.00 annually
98 1 ° 5
GROUP II Low
RFP 2917-0614/11G Marcel Kevin James David Jennifer
c Aggregate m CityMunicipal Parki9Couso Kinney Murphy ,� Naranjo Seoanes Garage Advertising Services g a a a Totals
Lambda Lambda Sigma LLC
DBA Alchemy Media 100 1 98 1 97 1 100 1 100 1 5 1 $225,000.00 annually
Page 1220 of 1596