Title
Downtown Digital Kiosks
Description
This report provides the Transportation, Infrastructure and Planning Subcommittee information on the potential installation of interactive informational kiosks in public right-of-way within certain areas of the downtown Enhanced Municipal Services District. Staff further requests feedback from the Subcommittee regarding the potential for a Downtown Digital Kiosks project.
THIS ITEM IS FOR INFORMATION AND DISCUSSION.
Report
Summary
Downtown Phoenix Inc. (DPI), an Arizona nonprofit corporation, is contracted by the City to provide enhanced municipal services for the downtown Phoenix area generally described as 3rd Avenue to 7th Street and Jackson to Fillmore streets. Some of these enhanced services includes providing a higher level of maintenance and amenities, such as landscaping, seating, and way finding signage, within the Streetscape Improvement District (SID).
DPI initially approached City staff and requested permission from the City to install eight to ten digital interactive kiosks (Kiosks) within the SID as a pilot program, which would provide way finding and real-time information related to public transit, events, downtown businesses, buildings, as well as social media interaction with users.
City staff and DPI have since discussed the various aspects of a Kiosks project, including the procurement and installation of equipment, management and control of the Kiosks, maintenance responsibilities, resilience of Kiosks to Phoenix weather and temperature conditions, Kiosk content and features, revenue generation, advertising, and legal considerations.
Digital Kiosks
Static kiosks have been used in downtown areas across the United States, including Phoenix, for many years to convey information about upcoming community events, public meetings, and other pertinent information for residents and visitors. With advancements in technology these Kiosks have become electronic in design, offering touch screen technology and real-time information. Many cities across the United States have either installed these Kiosks themselves or collaborated with others to install Kiosks in places like bus stations, light rail stations, convention centers, and public squares. These Kiosks are touted by vendors and municipalities as offering an easy interface for residents to access information about city services and resources, publicize entertainment opportunities, way-find in downtown areas, obtain emergency alert information, and promote a pedestrian friendly environment in an innovative way.
In addition, Kiosks can also have optional features such as free Wi-Fi access, emergency call stations, social media interaction, payment centers, and cameras for enhanced security. Municipalities like the City of Houston, which in spring 2021 approved the initial installation of 75 Kiosks, promoted the installation of digital Kiosks as an innovative method to lead residents and visitors to local businesses, promote events, give directions, explore their downtown, post job opportunities, offer social services, conduct surveys, and generate additional revenue.
Revenue Potential
Kiosks are traditionally leased or rented by the municipality, but can also be owned by the municipality. The capital investment for the design and installation of the Kiosks is compensated via an operations agreement with a Kiosk vendor who sells advertising space on the Kiosk. Advertising is typically displayed when the Kiosk is not being actively engaged by a user. The revenue generated by the sale of advertising is also typically used to cover the operations and maintenance of the Kiosk, with a portion thereafter shared via a revenue-sharing agreement with the Kiosk vendor. This revenue-sharing varies greatly across municipalities researched but many have signed agreements wherein an average of 25-40 percent of the net revenues are shared with the municipality. For example, the City of Houston's contract guarantees the City minimum annual revenues of $1-$2 million, with potential revenues of approximately $4 million from the 75 kiosks they have agreed to install in the initial contract phase. However, like the City of Phoenix, the City of Houston, has existing ordinances that prohibit advertising in the public right-of-way (ROW), and code changes were required to permit the installation of their Kiosks.
Considerations
Kiosks like the ones proposed for the downtown area are typically located within the public ROW and are traditionally funded by the sale of advertising displayed on the Kiosk. Existing Phoenix City Code prohibits advertising within public ROW with a few exceptions, and installation of the Kiosks would required an exception to the Phoenix City Code. Further, it is recommended that these types of Kiosks should be managed by the City of Phoenix and not delegated to an outside or private entity.
Staff researched the use of Kiosks in other cities locally and nationwide, and have evaluated what the installation of Kiosks in downtown Phoenix could offer residents and visitors, including the potential to have these Kiosks installed prior to the return of the Super Bowl to Arizona in February 2023.
Installation/Operations
Design and installation of the Kiosks are traditionally covered by the Kiosk vendor as are the ongoing operations and maintenance. Electricity for the Kiosks is covered by the Kiosk vendor and Wi-Fi access can be provided either by the municipality or the Kiosk vendor. Locations for all Kiosks are mutually agreed upon between the municipality and the Kiosk vendor and must be within the public ROW. The vendor's installation of the Kiosks would include building permits, utility coordination and construction, and repairs to any impacted street assets including pavement and sidewalks.
The overall design of the Kiosk, its content, details of frequency of advertising, special features on the Kiosk, and service timelines are all individualized to meet the needs of the municipality. Advertising content is typically mandated to follow and be screened to meet all municipality requirements for visual, written and verbal content in accordance with local standards. All maintenance activities, including graffiti removal or other vandalism repairs, is required to be completed at the Kiosk vendor’s expense and within a reasonable time frame from notification. Upgrades and replacement of Kiosks beyond routine maintenance and repair would also be at the Kiosk vendor’s expense.
Program Implementation
Moving forward with potential implementation of Downtown Digital Kiosks program would first involve initiating and issuing a Request for Information (RFI) to potential Kiosk vendors to gather the most relevant and recent information on contract terms, Kiosk features and installation timelines. The RFI would be used to inform the content of a Request for Proposals (RFP), which would be issued in order to select a Kiosk vendor. With Council approval, the City would enter into a contract with the selected vendor based on the vendor's proposal and agreed upon contract terms.
The Street Transportation Department requests feedback from the Transportation, Infrastructure and Planning Subcommittee regarding the potential for a Downtown Digital Kiosks project.
Location
Downtown Phoenix
Council Districts: 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Street Transportation Department.