City Council
Report
City Council Meeting: April 12, 2022
Agenda Item: 3.D
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To: Mayor and City Council
From: David White, City Manager, City Manager's Office
Subject: Approval of Second Modification to Agreement 10813 (CCS) with The Superlative Group, Inc. for Evaluation and Analysis of Proposals Received in Response to RFP #300 Digital Wayfinding and Out-of-Home Advertising Kiosk Program
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a second modification to agreement #10813 (CCS) in the amount of $55,000 (including 10% contingency) with The Superlative Group, Inc. to provide consultation services for the Digital Wayfinding and Out-of-Home Advertising Program. This would result in an eight-year reinstated and amended agreement with a new total amount not to exceed $846,734, with future year funding contingent on Council budget approval.
Summary
In January of 2021, as part of the City’s mid-year budget update, staff presented the results of a valuation study that identified viable opportunities to expand public-private partnerships for the City. Following that presentation, City Council directed staff to issue a Request for Proposals (RFP) to launch a Digital Wayfinding and Out-of-Home Advertising Program and return with a recommendation to award a franchise agreement. RFP #300 was open from December 1, 2021 to January 21, 2022 and six proposals were received.
Due to the extended term of the franchise agreement (20 – 30 years), the complex and highly technical nature of the proposals received, the advanced technology required to implement the program, and to ensure the City receives fair value, staff recommends 2 of 5
reinstating the agreement with The Superlative Group (Superlative) in the amount of $55,000 to provide the following services:
• Complete a comprehensive review of the proposals received by the City; • Compare valuations and rates of success by the proposers for similar project arrangements in comparable markets;
• Evaluate each proposal’s overall financial benefit to the City for the term of the franchise agreement;
• Analyze the proposed equipment and technology to be used by each proposer; • Compare the proposed timelines for project implementation included in each proposal to the realistic timelines needed for project implementation; and • Provide guidance to the City, as needed, throughout negotiations with proposers.
Discussion
Since 2015, the City has contracted with Superlative to value, procure, and manage sponsorships for the Breeze Bike Share system and conduct a valuation study of other viable assets (i.e., naming rights and sponsorship opportunities for City-owned facilities, public spaces, and category partnerships). In February 2020, the Budget Task Force recommended developing a public-private partnership program, a need which was later underscored by the COVID-19 pandemic and resulting stay-at-home orders that dramatically impacted the City’s revenue streams.
On June 9, 2020, Council directed staff to work with Superlative to complete a valuation study to look at all viable public-private partnership opportunities, including a digital wayfinding and out-of-home advertising program. To complete this work, Superlative conducted site visits, information gathering, quantitative and qualitative valuation analyses, development of an asset database, policy and contract analysis, and industry benchmarking.
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With the mid-year budget update on January 26, 2021, staff returned to Council with the results of the valuation study and Council approved moving forward with an RFP process to identify a franchise partner to implement a Digital Wayfinding and Out-ofHome Advertising Program. The RFP’s scope of work includes implementation of digital wayfinding kiosks that would provide interactive information to residents and visitors, as well as enhance public safety via emergency capabilities. Kiosks could include a variety of public benefits and smart technologies such as:
• Wayfinding information;
• Public service announcements;
• Economic development information related to local businesses and attractions; • Public safety alerts and emergency phone capabilities; • Public wireless internet;
• Connection to the City’s 3-1-1 customer service portal; • Real-time transportation options and arrival/departure data; • Pedestrian and vehicle counts;
• Multilingual display; and
• Minimum advertising space allocated to the City to promote community programs and services.
The program would be structured as a franchise agreement that would require no direct costs incurred or investment made by the City, with the franchisee required to deploy, operate, and maintain the kiosks. Compensation for the City and the franchisee would be realized through a percentage of advertising revenues.
Staff recommends reinstating the agreement with Superlative to support the City in securing the most profitable franchise agreement with the best qualified franchise partner for the program. Staff would subsequently return to Council in Summer/Fall 4 of 5
2022 with a recommendation to award the Digital Wayfinding and Out-of-Home Advertising Program RFP to the best bidder, as determined with the assistance of Superlative’s analyses.
Past Council Actions
Meeting Date Description
01/26/2021
(Attachment A)
Council directed staff to move forward with an RFP process to identify a franchise partner to implement a Digital Wayfinding and Out-of-Home Advertising Program.
06/09/2020
(Attachment B)
Council directed staff to work with Superlative to complete a valuation study to look at all viable public-private partnership opportunities including sponsorships, naming rights, and digital wayfinding and out-of-home advertising.
03/05/2019
(Attachment C)
Council authorized a first modification to agreement #10813 (CCS) with The Superlative Group, Inc.
Financial Impacts
Staff seeks authority to increase the amount of the agreement with The Superlative Group to provide proposal evaluation and analysis services for the Digital Wayfinding and Out-of-Home Advertising Program. Funds are available in existing departmental budgets. Per the valuation completed by Superlative in 2021, it was estimated that the City could potentially generate a minimum of $2 million per year in annual revenues once the program is implemented, and potentially more. Additional information on the expected revenues and timing of such revenues would be presented at the time when staff return to Council for award of a franchise agreement.
Agreement Modification Request
Agreement #
Current
Authorized
Amount
FY 2021-22 Budget
Modified Request
Amount
Department Account # Total Revised
Contract Amount
10813 (CCS) $791,734 $0 01700003.537080 $791,734
10813 (CCS) $0 $27,500 01200009.552010 $ 27,500
10813 (CCS) $0 $27,500 01300005.552010 $ 27,500
Total: $846,734
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Prepared By: Melissa Spagnuolo, Acting Community Partnerships Administrator Approved Forwarded to Council
Attachments:
A. January 26, 2021 Staff Report (Web Link)
B. June 9, 2020 Staff Report (Web Link)
C. March 5, 2019 Staff Report (Web Link)
D. Oaks Initiative Form
E. Contract 10813 - The Superlative Group
F. First Modification - Contract 10813 - The Superlative Group