At its meeting on Monday evening, the City Council approved and selected a vendor for an interactive digital kiosk program with commercial advertising (Program) along City sidewalks and public right-of-way. In addition, the City Council voted to form an ad hoc subcommittee to work with City staff and the selected vendor to negotiate the terms of an agreement. Vice Mayor Dan O'Brien and Council Member Albert Vera Jr. were selected to lead the subcommittee. Of the two vendors to have submitted bids to the City for the program, the City Council selected IKE Smart City as the City's kiosk provider and operator. IKE is deployed in 20 cities, operating 550 live units.
IKE will be responsible for all installation and operating expense costs. The City will receive a $500,000 signing bonus for Phase 1 that would include 15 kiosks, 50% of net advertising revenues, with a minimum annual guarantee of $750,000. IKE will give $500,000 worth of advertising space to local businesses and non-profits annually. An second phase would site an additional 15 kiosks, at the mutual option of the City and IKE. IKE Smart City will provide cumulatively at least 25% of the default, advertising rotating screen time to the City for public information and announcements. No specific locations for the kiosks have been identified, though Downtown, Fox Hills, and the Art District have been considered. The Ad Hoc subcommittee will discuss siting and host a community meeting to gather feedback on proposed siting. The City Council will approve the final siting plan. IKE will be responsible regular maintenance, which will occur five days a week, and includes phone response 24/7.
The minimum annual revenues to the City are estimated to range from $750,000 per year (minimum annual guarantee of $50,000 per kiosk) for Phase I for the first year and approximately $876,000 to $1.3 million annually during the first 10 years of operation.
Vice Mayor O'Brien and Council Members Vera Jr. and Goran Eriksson voted in favor of the motion. Council Member Freddy Puza voted against. Mayor Yasmine-Imani McMorrin abstained from the vote. You can view IKE's proposal submission on the City's website.
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