777 SOUTH FIGUEROA STREET, SUITE 2555 LOS ANGELES, CALIFORNIA 90017 PHONE 213.622.8095 2410002.CUL:KHH
WWW.KEYSERMARSTON.COM 11410.011.001
ADVISORS IN:
Real Estate
Affordable Housing
Economic Development
BERKELEY
Debbie M. Kern
David Doezema
LOS ANGELES
Kathleen H. Head
Kevin E. Engstrom
Julie L. Romey
Tim R. Bretz
SAN DIEGO
Paul C. Marra
Linnie A. Gavino
EMERITUS
A. Jerry Keyser
Timothy C. Kelly
MEMORANDUM
Keyser Marston Associates, Inc. (KMA) was engaged by the City of Culver City (City) to summarize the salient terms of the two proposals submitted in response to the Request for Proposals (RFP) for Interactive Digital Kiosks (Kiosks) that was distributed in July 2024. Based on the parameters identified in the RFP the summaries identify the following salient features of the two proposals:
1. The qualifications information provided by each proposer, including the following information:
a. Experience implementing, operating, maintaining and managing analogous Kiosk projects;
b. Case studies that demonstrate the company’s relevant experience; c. A description of the technology employed by the company in the development and operation of the Kiosks; and
d. Other pertinent information provided by the proposers.
2. The major components of the proposed implementation scope, which are identified in the following table:
To: Elaine Gerety-Warner, Economic Development Director City of Culver City
From: Kathleen Head
Date: October 21, 2024
Subject: Digital Kiosk Proposal Summaries
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Implementation Scope Components
Design Financing Plan
Locations Operations
Installation Maintenance
Accessibility City Responsibilities
Public Outreach Cost/Revenue Sharing
EXECUTIVE SUMMARY
Proposers
The City received proposals from the following entities:
1. IKE Smart City is a subsidiary of Orange Barrel Media, LLC, which is a privately held company:1
a. IKE Smart City has 15 years of experience in the construction and installation of Kiosks.
b. To date IKE Smart City has deployed and is operating 550 Kiosk units in 20 cities.
2. Success Mantra is a boutique management advisory firm that created a team that includes Ideum & Peerless AV, a hardware manufacturer and Fanisko LLC, a products and solutions company:
a. The team’s focus has been on creating tour applications and Kiosks used by sight-seeing locations. The team does not have specific experience in creating and installing wayfinding Kiosks for cities.
b. The team members have experience in their relevant fields ranging from 10+ years for Fanisko LLC to 20+ years for Success Mantra and Ideum & Peerless AV.
1 IKE stands for Interactive Kiosk Experience.
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Proposed Business Terms
There is significant variation between the business terms being proposed by the two groups, which can be summarized as follows:
KIOSK CONSTRUCTION AND INSTALLATION
1. IKE Smart City is proposing to construct and install 15 Kiosks in a first phase, and an additional 15 Kiosks in a second phase at the City’s and IKE Smart City’s mutual discretion.
2. The Success Mantra team is proposing to construct and install a minimum of 30 Kiosks. The construction is proposed to be split into two 15 Kiosk phases.
FINANCING PLAN
1. IKE Smart City is proposing to construct and install the Kiosks at no cost to the City.
2. The Success Mantra team’s proposal calls for the City to fund the costs associated with constructing and installing the Kiosks and then to be reimbursed with the net operating income generated by the Kiosks.
PROPOSED AGREEMENT TERM
1. IKE Smart City is proposing that the agreement with the City remain in place over a 10-year term, with a 10-year renewal option if they remain in good standing at the end of the initial term.
2. The Success Mantra team is proposing to enter into a five year agreement with the City. A seven year agreement term option is also provided.
GUARANTEED PAYMENTS AND BENEFITS TO THE CITY:
1. IKE Smart City is proposing to provide the following payment structure:
a. A $500,000 cash signing bonus is proposed to be paid upon the installation of the first Kiosk in Phase 1. If the City and IKE Smart City agree to a second phase, an additional $500,000 cash signing bonus will be paid upon the installation of the first Kiosk in Phase 2.
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b. Each year the City will be provided with the greater of $750,000 or 50% of the net revenues generated by the Kiosks.
c. Commitments to provide advertising space for local businesses and nonprofit content with a value of $500,000 per year.
2. The Success Mantra team’s proposal is structured as follows:
a. The City is proposed to receive 100% of the net revenues generated by the Kiosks until the construction and installation costs incurred by the City are recouped.
b. Minimum annual payments:
i. The City will be provided with the greater of a minimum payment of $75,000 per year for the 15 Kiosks installed during Phase 1, increasing to $150,000 per year once 30 Kiosks are installed; or
ii. Thirty percent (30%) of the net advertising revenues generated each year.
c. Options are provided for increased revenue sharing opportunities under specified conditions.
A matrix that compares the salient characteristics of the two proposals follows this memorandum.
PROPOSAL ANALYSES
IKE Smart City
IKE Smart City is a subsidiary of Orange Barrel Media, LLC, which is a privately held company that has been operating since 2004. IKE Smart City was founded in 2015, and has offices in West Hollywood, California; New York, New York; Columbus, Ohio; and Charlotte, North Carolina. This project would be managed by the West Hollywood office.
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RELEVANT EXPERIENCE
Since 2015 IKE Smart City has deployed Kiosk networks in 20 cities and is operating 550 live units. IKE Smart City has been awarded contracts in four additional cities.
Current Kiosk Locations
Atlanta, Georgia Houston, Texas
Aventura, Florida Miami, Florida
Baltimore, Maryland Minneapolis, Minnesota
Berkeley, California Oakland, California
Cincinnati, Ohio Phoenix, Arizona
Cleveland, Ohio Raleigh, North Carolina
Columbus, Ohio San Antonio, Texas
Coral Cables, Florida St. Louis, Missouri
Denver, Colorado Tampa, Florida
Detroit, Michigan Tempe, Arizona
Awarded Contracts
Arlington, Texas San Diego, California
Miami Beach, Florida Washington, DC
IKE’s stated s mission is to create value for municipal clients and the cities they serve through innovative smart city technology.
CASE STUDIES
The RFP requested that proposers provide three examples of other successful Kiosk installations that have been operational for a minimum of two years. IKE Smart City provided seven examples. KMA has summarized the characteristics of the Berkeley, Oakland, and Coral Gables installations. The other four examples that were provided are Atlanta, Tampa, Denver, and Houston.
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Berkeley, California
IKE Smart City entered into a franchise agreement with the City of Berkeley for deployment of Kiosks throughout the city. IKE Smart City indicated that they work closely with Berkeley’s destination marketing organization; its business improvement districts and business associations; disability advocacy organizations; and other stakeholder groups to refine the Kiosks to meet the needs of residents and visitors.
Key features of this venture are:
1. IKE Smart City entered into a partnership with the National Federation of the Blind to develop a nonvisual access solution for the Kiosks. This accessibility feature is now live across all the IKE Smart City locations.
2. The Kiosks complement Berkeley’s existing static wayfinding signage by providing enhanced information which is updated continuously at no cost to the City of Berkeley.
3. The proposal states that the applications have been customized to promote discovery and exploration of Berkeley’s neighborhoods.
4. The Kiosks exhibit projects by local and international artists in collaboration with Berkeley’s cultural organizations.
5. IKE Smart City indicated that they support various community groups and nonprofit organizations through sponsorships and promotional efforts.
Oakland, California
The City of Oakland selected IKE Smart City to provide 50 Kiosks to serve residents and visitors. These kiosks provide dynamic wayfinding capabilities, access to social services, community engagement through interactive features, and art activations.
IKE Smart City identified the following key features of this program:
1. IKE Smart City works with arts and cultural institutions to develop media programs that showcase the work of established and emerging artists.
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2. IKE Smart City and the City of Oakland worked collaboratively with business located near the proposed Kiosk sites. This included outreach to neighbors and business owners to identify ideal locations for the Kiosks.
3. IKE Smart City collaborated wit the City Council offices, business improvement districts, and other stakeholders to determine the most suitable locations for Kiosks within each district. 15% of the Kiosks are being located in high priority underserved target areas.
Coral Gables, Florida
The Miami City Commission unanimously approved an ordinance that allowed for the placement of 150 advertising funded Kiosks citywide within the right-of-way or on city- owned property. IKE Smart City indicated that after the Kiosks went live Coral Gables advertising revenue increased by five times due to its close proximity to the Miami network.
TECHNOLOGY EMPLOYED IN THE DEVELOPMENT AND OPERATION OF THE KIOSKS IKE Smart City employs a full-time Product and Software Engineering team dedicated to keeping the firm on the cutting edge of technology. IKE Smart City does not outsource any of this work.
The Kiosks are fabricated with premium hardware to ensure performance and longevity in all conditions. The Kiosks are evaluated to UL standards, they withstand extreme weather conditions, and they are graffiti resistant.
The physical dimensions of the Kiosks are as follows:
1. The Kiosks are two sided and they weigh approximately 800 pounds;
2. The Kiosks are 99.5 inches tall, 37.5 inches wide and 12.5 inches deep;
3. The touchscreen size is 65 inches;
4. The footprint is 37.5 inches by 12.5 inches; and
5. The digital interface is 12.3 square feet.
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6. The Kiosks typically include eight screens that flip every 10 seconds. The slides run for 24 hours per day and they do not vary by time.
The Kiosks are set up with Wi-Fi information obtained by the user can be transferred to their mobile phone. A QR Code methodology is applied to protect against personal data being retained. Moreover, the data is scrubbed immediately after use. IKE Smart City does not collect or sell data.
IKE Smart City offers an optional Emergency Call System that connects to local emergency services at no cost to the City.
DIFFERENTIATORS
IKE Smart City identified the following qualifications that differentiate the firm from their competitors:
1. Unparalleled experience;
2. Expert and vertically integrated team;
3. Financial stability;
4. Community focused; and
5. Best-in-class user experience.
PROPOSED IMPLEMENTATION SCOPE
Design
IKE Smart City offers customization opportunities that are proposed to be refined to reflect the City’s brand. The proposal includes the following three design concepts:
1. The Culver City logo, which is comprised of the red cursive font and modern gray type, which were inspired ty the original Culver Theater marquee.
2. Heart of Screenland, which recognizes Culver City as the legendary heart of the film industry by balancing it tagline on the spine of the City’s seal on the front of the Kiosk.
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3. The film industry is a recognizable hallmark of Culver City, and this concept incorporates the iconic elements of a film strip that runs across the spine and a graphic film reel runs along the gray cabinet base.
Location
IKE Smart City is proposing to install 15 Kiosks in Phase 1. At the City’s and IKE Smart City’s mutual discretion an additional 15 Kiosks would be installed in Phase 2. IKE Smart City recommended that a minimum of 15 Kiosks need to be provided to ensure the network benefits can be achieved and commercial viability can be ensured.
IKE Smart City identified the following potential areas for Kiosk placement:
1. Downtown;
2. City Hall;
3. Arts District; and
4. Fox Hills.
IKE Smart City proposes to partner with the City and local stakeholders to identify the optimal locations for the Kiosks while the Kiosks are being manufactured, The identified key location selection criteria are:
1. Public interaction;
2. ADA compliance;
3. Kiosk locations in close proximity to power sources;
4. Adjacencies to retail and/or restaurants; city attractions or the entertainment district; and transit centers; and
5. Compliant sidewalk placement.
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Installation / Accessibility
IKE Smart City offers a fully integrated team to perform all the necessary Kiosk installation work. The firm is experienced in public right-of-way and utility construction. They use industry recognized SAS to manage large scale deployments for speed and efficiency.
IKE Smart City indicated that they typically can complete the initial Kiosk installations within six months depending on site design, identification of power, connectivity, and local permitting requirements. IKE Smart City proposes to:
1. Locate Kiosks in areas that are easily and safely accessed by pedestrians;
2. Choose locations that meet Federal ADA requirements and all applicable City code requirements;
3. Select locations in close proximity to power sources to avoid long trenches and invasive construction and disruption; and
4. To repair sidewalks to their pre-existing condition.
Public Outreach
The IKE Smart City proposal does not include a section dedicated to their public outreach plan. However, throughout the proposal IKE Smart City identified proposed collaborations with City staff, policy makers, community groups, and other local stakeholders. IKE Smart City indicated that as part of the proposal process IKE Smart City canvassed Culver City businesses. They included letters of support from the following people/organizations:
Letters of Support
Culver City Education Foundation Culver City Arts District Wende Museum Organic, LLC dba Akasha Restaurant
Walter N. Marks Incorporated Crystal C. Alexander
Financing Plan
IKE Smart City proposes to manufacture, install, operate, and maintain the Kiosk program at no cost to the city. IKE Smart City proposes to undertake an initial phase that includes Elaine Gerety-Warner, City of Culver City October 21, 2024 Digital Kiosk Proposal Summaries Page 11
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15 Kiosks. A second phase that includes 15 additional Kiosks will subsequently be undertaken at the mutual discretion of the City and IKE Smart City.
Due to the large capital investment required to deploy a Kiosk network, IKE Smart City is proposing that the City enter into an agreement with a 10-year term. They are further proposing that a 10-year renewal be offered if IKE Smart City is in good standing at the end of the initial term.
Operations
IKE Smart City has an in-house staff dedicated to ongoing operations, software development, content management and sales. IKE Smart City proposes to provide the following services at no cost to the City:
1. On-site and remote systems operations monitoring;
2. Kiosk troubleshooting and repairs;
3. Hardware upgrades;
4. Content updates and implementation;
5. Data analysis accessibility and reports; and
6. Advertising sales and implementation.
Maintenance
IKE Smart City follows clear operational processes using a skilled team of remote and in- market resources. IKE Smart City is immediately notified of any issues through their remote monitoring team and telephone response on a 24/7 basis. Regular maintenance is provided by field technicians five days per week and one weekend day. Remote monitoring is provided on a 24/7 basis. In addition, a Regional Technical Supervisor is available to resolve issues within 24 hours of receiving notification of an issue.
City Responsibilities
The City responsibilities are limited to the Planning Department’s role in the entitlement and the Public Works Department’s role in approving the installation of the Kiosks on Elaine Gerety-Warner, City of Culver City October 21, 2024 Digital Kiosk Proposal Summaries Page 12
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public rights-of-way. IKE Smart City proposes to provide a turnkey operation at no cost to the City.
Cost/Revenue Sharing
The City is not being asked to invest any funds in the development, installation, or operation of the Kiosks. In return for being provided with the opportunity to undertake the project, IKE Smart City is offering the following compensation to the City:
1. A $500,000 cash signing bonus upon the installation of the first Kiosk in Phase 1. If the City and IKE Smart City agree to proceed with a second phase, an additional $500,000 cash signing bonus will be provided upon the installation of the first Kiosk in Phase 2.
2. The proposed revenue sharing structure provides the City with greater of the following amounts each year:
a. A minimum annual payment of $50,000 per Kiosk, which equates to $750,000 for 15 Kiosks; or
b. 50% of net revenues.
Based on the IKE Smart City projections, the net revenues will exceed the minimum annual payment each year commencing in the second year of operation. The annual payment amounts are estimated to range from approximately $876,000 to $1.3 million during the first 10 years of operation.
IKE Smart City is also offering the non-monetary benefits to the City include the following:
1. Cumulatively at least 25% of the screen time is proposed to be dedicated to City uses; and.
2. $500,000 per year will be set aside for local business and nonprofit content.
Success Mantra Team
RELEVANT EXPERIENCE
The Success Mantra team consists of the following entities:
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1. Success Mantra identifies as a boutique customer success management advisory firm that has been providing services for over 20 years. The proposal indicates that these services include the following:
a. Services to organizations of any size to assist the organization in achieving their short- and long-term goals.
b. Enabling their clients to reach their goals by providing management consulting, identification of potential new clients and markets for products and services.
c. Providing design services, custom software, fabrication, and audio-visual exhibits.
d. Designing and developing turnkey products for public spaces. These products have been sold in more than 40 countries.
2. Ideum & Peerless AV (Ideum) is a hardware team that over the past 20+ years that provides interactive digital experiences. The proposal indicates that Ideum is the largest employer in Corrales New Mexico.
3. Fanisko LLC (Fanisko) is a products and solutions company that has a team of innovators and technologists that use Augmented Reality/Virtual Reality (AR/VR), Gamification, and Gen AI for sports, media, healthcare, retail brands, and enterprises. Fanisko has been working with enterprise organizations throughout the world for the last 10+ years to help them with their digital transformation and modernization needs.
The Success Mantra team indicated that their focus has been on creating interactive products that tell important stories about science, art, history, and culture. They further state that the team is committed to creating user centric interactive experiences that are delivered in immersive and exciting ways. The Success Mantra team provides design services, custom software, fabrication, and audio visual exhibits. They design and develop product spaces and they sell them in 40 countries.
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CASE STUDIES
The RFP requested that proposers provide three examples of other successful Kiosk installations that have been operational for a minimum of two years. The Success Mantra team provided three examples of tour applications, a design room example and the following two Kiosk examples:
New Mexico Film Production Albuquerque Support
This interactive Kiosk is located in the airport, and the proposal indicates that it offers scenic vistas of New Mexico. The Kiosk also provides information on movie and television productions that have captured those sites on film.
Nieuwe Kerk & Oude Kerk Digital Signage Experience
These outdoor digital Kiosks combine heritage preservation, digital signage technology, and architectural integration. The proposal indicates that the team performed rigorous on- site assessments and an understanding of the local environment to inform the design of a digital signage system capable of withstanding the challenges of outdoor exposure.
The Kiosks feature trademarked outdoor displays. The proposal indicates that the Kiosks have exhibited excellent durability and they provide exceptional visibility in diverse weather conditions.
TECHNOLOGY EMPLOYED IN THE DEVELOPMENT AND OPERATION OF THE KIOSKS
1. Proposed hardware and software:
a. The Success Mantra team’s hardware operates on an integrated Windows computer running Windows 11 Pro. The hardware is proposed to come equipped with standard Windows system health checking programs.
However, the City has the discretion to install any programs of their choice. b. A proprietary software program will be provided that allows for attractive animations and transitions. Several aspects of the information would be pulled from various APIs in order to display the most updated information without requiring a person to make the updates.
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c. Proprietary Kiosk-mode software will be provided that prevents users from breaking into the front end Kiosk system. The back end security updates will be dependent on the systems from which the Kiosks are pulling. Windows updates will likely be needed during the Kiosks’ life cycle. d. A back end content management system will be built using a proprietary program in order to add custom information. The system will be editable using a browser based interface.
2. The screen brightness can automatically adjust the brightness and contrast through the setting in the Windows PC. Alternatively the brightness can be adjusted using a remote control provided for the system.
3. The Success Mantra team proposes to develop an API that serves as a robust interface between the database and front end applications. The proposal indicates that their approach includes implementing best practices for security, optimizing performance, and ensuring scalability to handle future growth.
4. The Success Mantra team’s Kiosks are equipped with advanced analytics capabilities that provide real time insights into usage patterns, user demographics, and interaction trends. This information is intended to help the client make informed decisions and to optimize the Kiosk program.
5. Custom reporting is provided to allow the client to access detailed reports on Kiosk performance, public engagement, and advertising effectiveness.
DIFFERENTIATORS
The Success Mantra team identified the following factors that differentiate them from other firms that implement Kiosks:
1. The Success Mantra team is continuously innovating its technology. They are committed to research and development to deliver cutting edge Kiosk solutions to meet the evolving needs of their clients.
2. Data privacy and security is prioritized. The Success Mantra team employs robust security measures to ensure that sensitive citizen information is protected.
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3. The Success Mantra team prioritizes a human centered design philosophy to ensure that their Kiosks are intuitive and user friendly.
4. The Success Mantra team fosters strong relationships with local businesses and organizations. By collaborating with local stakeholders they can create Kiosks that truly serve residents and visitors.
PROPOSED IMPLEMENTATION SCOPE
Design
1. The Success Mantra team identified the following three potential Kiosk designs:
a. The Ideum Portrait is an all-in-one multi-touch interactive Kiosk that features a vertically oriented 55 inch 4K Ultra HD display. This Kiosk is designed with a patented structure and constructed from aircraft grade aluminum. The proposal states that this Kiosk is built to withstand demanding environments to ensure both durability and high performance.
b. The proposal describes the Ideum 65” Presenter as a ruggedized multitouch 4K display designed to deliver high quality interactive experiences in demanding environments. This model is constructed with an all aluminum frame featuring a patented design that utilizes the best available commercial components to ensure durability and performance.
c. The Peerless AV Black Dual Sided Smart City Kiosk is designed to offer superior durability and functionality in demanding outdoor environments.
This model has a dual sided 55 inch patented display that ensures visibility and performance in any weather condition.
2. The Success Mantra team indicates that they are committed to environmentally friendly practices in their operations and product development. The Kiosks are designed with sustainability in mind, incorporating energy efficient components and recyclable materials.
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Location
As part of the proposal process, the Success Mantra team undertook comprehensive internal research and concluded that 30 strategically placed Kiosks would provide optimal coverage and accessibility for both Culver City residents and visitors. They believe that this number will allow the Kiosk network to effectively serve the city’s diverse neighborhoods and key areas.
The Success Mantra team is proposing to undertake the following Kiosk location identification process:
1. The team proposes to perform a detailed analysis to identify top locations for the Kiosks including population density, foot traffic, and potential usability. The study is proposed to include:
a. Mapping key business districts, parks, and commercial corridors; b. Analysis of population distribution and movement patterns; c. Assessment of tourist and visitor hotspots; and
d. Evaluation of transportation hubs and high traffic areas.
2. The Success Mantra team proposes to partner with City representatives to conduct on-site evaluations of potential locations.
3. The Success Mantra team proposes to incorporate community feedback through surveys, public meetings, and other engagement methods to ensure that Kiosk locations align with community preferences.
Installation / Accessibility
The Success Mantra team’s hardware is designed to be plug-and-play ready. As proposed, the Kiosk will only need to be connected to a power source. The Kiosk will have a universal 110-240V power using four amps or 400W at maximum load.
Portrait Kiosks are ADA compliant and the 65 inch Presenter Kiosks are ADA compliant when mounted at an appropriate height. As an option, the Success Mantra team offered to provide an “Audio Accessibility Layer” for visually impaired usersat an extra cost.
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Public Outreach
The proposal calls for the Success Mantra team to obtain community feedback through surveys, public meetings, and other engagement methods to ensure that Kiosk locations align with community preferences. The Success Mantra team estimates that the community outreach process can be completed within approximately six months.
Financing Plan
The Success Mantra team is proposing for the City to fund 100% of the costs associated with constructing and installing the Kiosks. In addition, in the event the revenues generated by the Kiosks in any year are less than the operating costs, the City will be responsible for funding the shortfalls.
Operations
The Success Mantra team is proposing to provide the following operations services:
1. Implementation of a proactive monitoring system to detect and address issues before they impact the user experience.
2. Creation of an automated alert system will be implemented that sends a notice to the Success Mantra team’s support group of any software issues or anomalies.
3. Availability of the team’s dedicated in-house support team during business hours to provide technical assistance and to troubleshoot any software related issues.
4. Use of remote access tools to diagnose and resolve issues quickly.
5. Prioritization of bugs or issues based on their impact and urgency.
6. Commitment to working diligently to resolve critical issues promptly.
Maintenance
1. The Kiosk hardware is proposed to be backed by a three-year warranty with an in- house support team that will be available during business hours to troubleshoot issues. Repairs are proposed to be undertaken on a case-by-case basis depending on the solution recommended by the Success Mantra team’s support team.
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2. Kiosk Software:
a. The software is proposed to be backed up by a one-year warranty. The team is offering an extended warranty option at an additional cost to the City. b. The Success Mantra team proposes to provide regular software updates to ensure that the Kiosk systems are funning the latest versions, incorporating new features, security patches and performance improvements. c. The Success Mantra team proposes to continually enhance the software to improve the user experience, introduce new functionalities, and maintain compatibility with emerging technologies.
City Responsibilities
The Success Mantra team is proposing to undertake the proposed Kiosk development and installation at an estimated cost to the City of $670,000 for 30 Kiosks. The team’s estimated operational costs for monthly maintenance and support, content management and updates, and electricity and connectivity are estimated at $90,000 in the first year of operation. The operational costs are estimated to increase by 8% in Year 2, 7% in Year 3, 6% in Year 4, and 5% in Year 5.
The Success Mantra team is proposing that the City assist with the necessary approvals, location permissions and site finalization. Success Mantra is also proposing that the City accept responsibility for establishing the internet connectivity for the system and funding that connectivity.
Cost/Revenue Sharing
The Success Mantra team’s proposal allows for the City to receive 100% of the net revenue generated by the Kiosks until the development and installation costs for the Kiosks have been recouped. Thereafter, the City is proposed to receive the following guaranteed revenues:
1. Minimum annual payments:
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a. The City will be provided with the greater of a minimum payment of $75,000 per year for the first 15 Kiosks, increasing to $150,000 per year once 30 Kiosks are installed; or
b. Thirty percent (30%) of the net advertising revenues generated each year.
2. Two options are provided for increased revenue sharing opportunities under specified conditions.
The Success Mantra team recommended that a minimum of 20% of the overall advertising space on the Kiosks should be dedicated to City related information. The rationale is that this will provide crucial public service announcements, emergency alerts, events, and other information that is vital to the community. It should be noted that the advertising space that is dedicated to City related advertising will reduce the revenues available to fund the Kiosks’ operating expenses.
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PROPOSAL COMPARISON
INTERACTIVE DIGITAL KIOSKS RFP
Proposal Element IKE Smart City Success Mantra Team
Experience with
Interactive Digital
Kiosks
Deployed networks in 20 cities and
operating 550 live standard /
customized units developed by IKE.
Experience with site / tour specific
Kiosks. Identified three potential
Kiosk designs available by third
party providers.
Maintenance / Warranty
Ike Smart City accepts
responsibility for all maintenance
throughout the agreement terms.
Regular maintenance five days per
week. Telephone response 24/7.
Hardware – three year warranty
Software – one year warranty
In-house support team available
during business hours to
troubleshoot software
Physical maintenance not included
Number of Kiosks /
Phasing
Phase 1 – 15 Kiosks
Phase 2 – Optional 15 Kiosks at City
and IKE Smart City Discretion
30 Kiosks implemented in two sub-
phases
Agreement Term 10-year term with 10-year renewal if
in good standing after initial term. Five-year term. One alternative option offers a seven-year term.
Location Siting
No specific sites were identified.
Potential areas include Downtown,
City Hall, Arts District and Fox Hills.
No specific sites were identified.
Proposal calls for a site survey that
considers foot traffic, visibility,
accessibility and proximity to public
amenities.
Content Coordination /
Display
Content options proposed to be
coordinated with the City. Design
and software capacity will be
consideration.
A custom content management
system is proposed to be built that
incorporates the client’s input.
City Responsibilities
Permitting and Plan review for the
installation. Participation in the
content coordination and approval
process.
Permitting, installation, site
finalization assistance,
maintenance, content
management, and display design.
City Costs
No installation costs or operating
expense costs are proposed to be
incurred by the City.
Staff costs associated with
permitting and collaboration on site
selection have not been estimated.
Set-up costs are estimated at
$670,000. Ongoing expenses are
estimated at $90,000 in Year 1,
increasing at 8% in Year 2, and then
to 5% by Year 5. Costs not
quantified are use of City WiFi, staff
costs for installation, permits or
site finalization.
City Revenues /
Community Benefit
$500,000 cash signing bonus when
Phase 1 Kiosks are installed. An
additional $500,000 cash signing
bonus if Phase 2 is approved by
both City and IKE Smart City.
Minimum annual guarantee of
$750,000 for Phase 1 versus 50% of
net advertising revenue.
Advertising space with a value of
$500,000 for local business and
nonprofit content.
No signing bonus.
Minimum annual guarantee of
$75,000 for the first 15 Kiosks,
increasing to $150,000 once 30
Kiosks are installed.
100% of net revenues are received
by City until set-up costs are
recouped. Thereafter, City receives
30% of net advertising revenues.