DEPARTMENT: Office of Innovation
DEPARTMENT HEAD: Brian Dillard
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Digital Community Kiosks Contract Amendment
SUMMARY:
This item will amend the professional services agreement with IKE Smart Cities LLC to extend the terms of the contract for the installation, maintenance and operation of the Community Digital Kiosks through December 31, 2030 with options to renew. This item also authorizes IKE Smart City, LLC to continue to advertise off premises in accordance with Chapter 28, section 28-10 of the City’s municipal code.
BACKGROUND INFORMATION:
On December 14, 2017, the City Council approved a contract award to IKE Smart City for the installation, maintenance and operation of digital kiosks. This pilot program, approved for a five-year initial term, promised the installation of up to 30 digital kiosks, at no cost to the City, throughout San Antonio including some City Parks, the San Antonio International Airport, the Convention Center, and Downtown.
This amendment will extend the agreement through December 31, 2030 and provide for renewal under the same terms and conditions for up to four additional one year periods. All other terms and conditions of the original contract with IKE will remain the same.
The kiosks are an excellent way for the City to communicate with both residents and tourists. They include information on wayfinding, VIA bus routes, B-Cycle, local events, and local businesses. The information is hyper-local within a 2-mile radius of the kiosk so that it is the most relevant to the person using the kiosk. In addition, the City can promote City programs like the San Antonio Library’s digital library collection, City events and current jobs that are available with the City.
Other key benefits include the ability to conduct short surveys and provide free Wi-Fi internet access to the public. The kiosks have air quality sensors, pedestrian sensors, and can also provide emergency communications when needed. IKE kiosks are ADA accessible and can provide content in multiple languages so that everyone will be able to utilize their benefits.
ISSUE:
This item will amend the professional services agreement with IKE Smart Cities LLC to extend the terms of the contract for the installation, maintenance and operation of the Community Digital Kiosks through December 31, 2030 with options to renew and authorizes IKE Smart City, LLC to continue to advertise off premises in accordance with Chapter 28, section 28-10 of the City’s municipal code.
ALTERNATIVES:
City Council could direct staff to issue a new Request for Proposals for the operations of digital kiosks throughout the City; however, this would create a loss of revenue from the current operations.
FISCAL IMPACT:
This item is a revenue contract. As part of the contract, IKE Smart City, LLC agrees to pay the City the greater of an amount equal to 21.5% of the Net Revenue generated from the operation of the kiosks equal to the gross revenue less the upfront cost of the kiosks or a Minimum Annual Guarantee per each year.
RECOMMENDATION:
Staff recommends approval of this item to extend the current professional service agreement with Smart Cities LLC through December 31, 2030 and allow IKE Smart Cities LLC to continue to advertise off-premises.