Briefing on Discussions Regarding a Master Lease Agreement for the Intelligent Digital Kiosks
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1 Briefing n Discussins Regarding a Master Lease Agreement fr the Intelligent Digital Kisks Cmmittee-f-the-Whle September 11, 2018 Nevin Grinnell Vice President Chief Marketing Officer 1
2 Agenda Backgrund Details Deal Pints 2
3 Cnnectivity thrughut ur system 3
4 Kisk Backgrund kisks deplyed, perated, and maintained by Smart City Media (SCM) and Landmark 10 years at n cst t DART; with tw, five-year ptins Deplyment at rail platfrms and transit centers and ther hightraffic passenger sites DART rider and DART rganizatin features/benefits Advertising revenue-sharing Funding fr mbile ruters fr bus fleet and light rail vehicles t enable Wi-Fi Deplyment f telecm structures at identified statins 4
5 Kisk Cntract Alignment Path February 2017 Briefed the Administrative Cmmittee n an unslicited prpsal frm Verizn April 2017 DART issued an RFP t encurage fair and pen cmpetitin Six respnses were received; three were cnsidered cmpetitive Octber 2017 Administrative Cmmittee unanimusly mved t frward this item t Cmmittee-f the-whle Cnsent Agenda Nvember 2017 Draft master lease and exhibits brught t the Cmmittee-f-the-Whle fr review January 2018 Cnslidated multiple dcuments int ne dcument June 2018 Prepare master lease cnsistent with apprved deal terms summary and supprting exhibits 5
6 Kisk Details
7 Kisk Details Tw-sided tuch screen unit Dimensins 8.8 feet tall 3.5 feet wide 55 inch screen Design Flexible skin design Operatins Requires 4 strands f fiber fr full peratin 7
8 Kisk Details Wayfinding Optins System will tie-in t ur wayfinding system Tp prtin f screen will prvide schedule infrmatin Opprtunity t and/r text directins 8
9 Kisk Details DART Infrmatin Opprtunity t cmmunicate DART infrmatin Hw t ride infrmatin Cde f Cnduct Bus bridges and emergency infrmatin Safety and Security infrmatin 9
10 Kisk Details Lcalized Infrmatin Opprtunity t pst lcal relevant infrmatin by categry Examples may include: Nightlife & Lcal Hanguts Parks & Recreatin Kids & Family Sprts/Fitness Live Music Venues Arts & Culture/Shpping Markets & Fairs Weather Etc. 10
11 Kisk Details Advertising Opprtunity fr lcal advertising Supprt fr ur lcal merchants Advertising by lcatin f Kisk 11
12 Kisk Details Additinal Features Wi-Fi htspt capable Prgrammed t interface in 9 languages ADA Features Braille labels Audi Jack, speakers and micrphne Inductin lp fr hearing aids Emergency cnnectin Available App and App integratin 12
13 Telecm Structure Details Telecm structure t generate revenue fr small cell Opprtunity t further enhance cnnectivity thrughut the DART system Structures will have cameras and lighting t further enhance safety and security fr DART riders 13
14 Key Deal Pints
15 Deal Terms 10-Year Term cmmencing: The date that is 6 mnths frm the effective date, r The date f the Installatin f the 50 th Kisk Extensin beynd Initial Term Tw successive five-year perids Installatin cmmitment 1 st functining Kisk within six mnths f the effective date 150 functining Kisks n later than the secnd anniversary f the effective date Cmpletin f at least 300 kisks n later than the third anniversary f the effective date 15
16 Payment Terms SCM t reimburse DART $2,240,510 fr Sierra Mdems purchased t facilitate Wi-Fi capabilities $1,120,255 n later than 30 days fllwing the effective Date $1,120,255 n later than 180 days fllwing the effective Date 35% revenue share fr advertising at the Kisk Cmmences the first quarter f the first year f the Term the last day f each quarter 10% revenue share fr telecm Small cell Cmmences the first quarter f the third year f the term the last day f each quarter 16
17 Data and Privacy Terms Cntract stipulates that bth DART and SCM are nt authrized t sell, rent r give away any data t third parties DART and SCM jintly c-wn all data Benefit fr DART is fr planning and cmmunicatin purpses N persnally identifiable infrmatin is cllected thrugh the Kisk There is n pen internet access at the Kisk Infrmatin captured thrugh lgs and datasets cnsists f cntent interactins, lcatin f the kisks and the mbile applicatins, prfile f the users and time f access Data is stred t prvide infrmatin as t type f cntent and services users are lking at 17
18 Exclusivity Terms Landmark/SCM shall have exclusivity, defined as: Interactive, r mtin-activated digital advertising Kisk n DART prperties (within the identified DART lcatins) Allws SCM t sell and place advertising n the Kisk under DART s existing advertising plicy Telecm infrastructure exclusivity n DART prperties and DARTwned real estate Excludes agency cmmunicatins telecm 18
19 Maintenance and Updates SCM/Landmark will maintain and repair, if needed, all the kisks and ensure they perate in accrdance with the design and specificatins SCM/Landmark will prvide a refresh fr replacement f Hardware between: the 3 rd year and 10 th year f the term between the 11 th year and the 15 th year and again the 16 th year and the 20 th year SCM/Landmark is respnsible fr all sftware maintenance and updates 19
20 Questins?
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