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CC - ACTION ITEM: (1) Adoption of a Finding that the Interactive Digital Kiosk Program Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15301(c) (Class 1), 15303 (Class 3) and 15304 (Class 4); (2) (If Desired) Approval of an Agreement with Ike Smart City, LLC for the Implementation of an Interactive Digital Kiosk Program, Including Commercial Advertising, Along City Sidewalks and Public Right of Way; and, (3) Direction to the City Manager as Deemed Appropriate.
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Meeting Date: July 14, 2025
Contact Person/Dept: Elaine Warner/Office of Economic and Cultural Development
Phone Number: (310) 253-5777
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (07/10/2025); (Email) Public Notification, Culver City Business License List, Downtown Business Association, Culver City Arts District, Chamber of Commerce (07/02/2025)
Department Approval: Jesse Mays, Assistant City Manager (07/01/2025)
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RECOMMENDATION
Staff recommends the City Council (1) adopt a finding that the interactive digital kiosk program is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15301(c) (Class 1), 15303 (Class 3) and 15304 (Class 4); (2) if desired, approve an agreement with Ike Smart City, LLC (“Ike”) for the implementation of an interactive digital kiosk program, including commercial advertising, along City sidewalks and in the public right-of-way; and, (3) provide direction to the City Manager as deemed appropriate.
BACKGROUND
In July 2024, the City released a Request for Proposals (“RFP”) for a Digital Kiosk Program in the public right-of- way as allowed per Zoning Code Amendment P2022-0357-ZCA approved in June 2024.
The RFP required respondents to provide detailed information on the kiosk design, proposed quantity and siting, infrastructure, installation, operation, maintenance, use, accessibility, financing, case studies, advertising strategy, respondent qualifications, technology, and additional information related to the kiosks. The RFP also requested a proposed cost/advertising revenue sharing program that provides for the kiosk’s infrastructure, installation, utilities costs, and on-going maintenance at no cost to the City.
In October 2024, the City Council selected Ike to implement an interactive digital kiosk program in Culver City.
DISCUSSION
Since October, Staff and the City’s Ad Hoc Digital Kiosk Subcommittee (Mayor O’Brien and Council Member Vera) (“the Subcommittee”) have been meeting to negotiate agreement terms and a siting process as previously directed by City Council.
The Subcommittee recommends approval of the proposed agreement (Attachment 1) which includes the following provisions:
Siting Plan and Process
Ike will develop a proposed siting plan in accordance with approved requirements (Exhibit E) and present to the community during a dedicated meeting to engage and encourage feedback regarding proposed locations. City staff may deny a proposed location pursuant to the following denial criteria:
• a specific health, safety, or aesthetic impact caused by the proposed location; or
• the proposed location will conflict with existing improvements, property interests, agreements, or other rights, or
• the proposed location will conflict with a planned public or private improvement, or
• the proposed location will conflict with applicable laws or regulations, or
• the City lacks the authority to approve Kiosk installation at that location, or
• the information provided regarding the proposed location is not detailed enough for the City to make a determination regarding approval.
Per the community and Subcommittee recommendations, a final draft siting plan will be brought to City Council for approval and implementation. The Council can approve and/or provide feedback for alternative considerations; however, the initial deployment would not be less than 15 kiosks for Phase I.
Repair and Maintenance
Ike will provide regular maintenance to ensure the units remain in “good and operable” condition with reasonable wear and tear excepted. For clarity, broken glass or graffiti is not defined as reasonable wear and tear. The agreement stipulates that Ike will:
• Visit every installed Kiosk each weekday (5 days), and conduct visits on weekend days as needed, to ensure the Kiosks are maintained in a clean manner
• Utilize electronic monitoring seven days per week to assess functionality
• Respond within twenty-four (24) hours to any notice regarding damage or disfunction
If a Kiosk needs to be permanently removed due to relocation or functionality, Ike will restore the sidewalk/location to its original condition.
Advertising Content
Pursuant to the requirements in the RFP, the agreement specifies the types of content/advertisements that are prohibited on the Kiosks to include content that:
• is contrary to any law, ordinance, rule or regulation of any applicable government authority;
• promotes or advertises adult-related products and services, firearms, tobacco, smoking, and smoking materials, including electronic smoking or “vaping”;
• promotes or advertises political campaign speech, political advertisements or advertisements or displays designed to promote views of political groups, including promotion or opposition of ballot measures;
• contains sexual or excretory subject matter;
• contains advertising that is false, misleading, or deceptive;
• contains advertising that violates copyrights or trademarks;
• contains profanity or depictions of violence;
• contains advertisements or displays which condone discrimination based upon race, religion, creed, ethnicity, national origin, age, socio-economic status, disability, gender or sexual orientation;
• is harmful or disruptive to the public use of public sidewalks;
• promotes unsafe behavior; and
• is demeaning or disparaging.
Advertising Buffer
To ensure the Kiosks remain competitive and revenue generating relative to the financial projections proposed, Ike has requested advertising buffers around the Kiosks.
The proposed agreement does not limit the City’s ability to authorize the installation of bus shelters and benches, or other street furniture hosting advertisements in the future but limits the distance these elements would be located near the Kiosks. Bus shelters and benches featuring advertising would be required to be at least 200 feet from any IKE Kiosk; and street furniture featuring advertising would be located at least 150 feet from any IKE Kiosks.
Default and Remedies
The Agreement includes a default and remedy provision that provides for a 30-day cure period after notification of a default, or up to 180 days if the issue cannot be cured due to third party/supplier issue.
Agreement Term
The term of the agreement shall be for a period of 20 years for each phase of deployment. The initial term, Phase I, includes the installation of 15 Kiosks within 10 years. An additional term of 10 years for Phase I (renewal term) may be provided if Ike has not been in default for the preceding year relative to its maintenance obligations.
The City and Ike have the option to not proceed with the Phase II installation for an additional 15 Kiosks. If the parties do not agree upon the additional deployment of Kiosks, the Agreement and revenue sharing remains in effect until the 20-year period for Phase I is complete.
Local Business/Non-Profit Content
To support access for local businesses and non-profits, Ike will provide an annual $500,000 allocation of free advertising space. The intent of the program allocation is to support and promote local, independent businesses not affiliated with a major chain or franchise and whose annual net revenues may prohibit the ability to afford third-party advertising. The program will be administered by Ike on a first come first serve basis and criteria for inclusion in the program shall be determined Ike and the Subcommittee. Pricing for advertisements may vary based on current Kiosk network and timing. Funding will remain available until exhausted.
Privacy Policy
The agreement includes language pertaining to privacy and collection of personal identifiable information as well as Ike’s Standard Privacy Policy (Exhibit C). The Standard Privacy Policy is broader relative to Ike’s entire network, however, the language in the agreement is specific to Culver City, and for purposes of enforcement, shall be senior to Ike’s standard policy. It notes that:
• The Kiosks shall not collect the personally identifiable information of its users, other than from users of the IKE Kiosks that provide consent for such information to be provided to the IKE Kiosk, including by accessing IKE’s Wi-Fi functionality and photo booth feature. The Company shall not sell any personally identifiable information collected by the IKE Kiosks.
• Ike shall require users to agree to the Privacy Policy prior to accessing the Wi-Fi functionality on each Kiosk, and each feature of the Kiosks that may collect personally identifiable information shall be designed with an access gate requiring user consent prior to accessing such feature.
• As of the date hereof, the only Kiosk features that may collect personally identifiable information are the Wi-Fi feature and the photo booth feature. The personally identifiable information collected by the photo booth feature is a photo of the user’s image, and the personally identifiable information collected through the use of the Wi-Fi functionality are MAC ID addresses and IP addresses. The IKE Kiosks shall not retain copies of the photos taken via the photo booth feature for any duration longer than is required to allow users to access such images via QR code. The Company may retain MAC ID addresses and IP addresses for a limited period of time before being removed from the hardware in the ordinary course.
• The Company shall notify the City prior to adding any new features capable of collecting personally identifiable information, and any new features, if added, shall contain an access gate similar to those employed by the Wi-Fi feature and the photo booth feature to alert the user to the collection and sharing of any personal identifiable information provided upon use of that feature.
• The IKE Kiosks may also collect and generate usage data, which data is aggregated and anonymized and not capable of being used to personally identify individual users of the IKE Kiosks. The Company may share such aggregated and anonymized data as needed to ensure the efficient operation of the IKE Kiosks, such as in connection with developing new features for the IKE Kiosks or enhancing existing features of the IKE Kiosks.
Installment Bonus
Ike will provide the City with a non-refundable installment bonus of $500,000 within 30 days after the first Kiosk is operational. If the City and Ike mutually decide to proceed with Phase II for the installation of an additional 15 Kiosks, an additional $500,000 installment will be issued within 30 days after the 16th Kiosk is installed. The Phase II installation can be approved at any time between Phase I and the 10-year option determination. If Phase II is approved five years from the Effective Date of the agreement, the installment bonus for the 16th Kiosk will be increased by 10% ($550,000) to account for net present value. If the 16th Kiosk is installed ten years after the Effective Date, the installment bonus will be increased by 20% ($600,000).
Revenue Sharing
The City will receive the greater of a 50% net revenue share for the program or the minimum annual guarantee per Kiosk. The net revenue is the amount generated after the costs relative to installation, maintenance, operation, insurance and equipment are deducted.
At full installation of Phase I, Ike projects that 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 increase to approximately $876,000 to $1.3 million annually during the first 10 years of operation. The minimum annual guarantee shall increase by 10% for every five-year increment of the agreement for operating kiosks. These increases shall also apply to Phase II implementation if optioned.
Ike’s Proposal & Financial Projections
Ike’s proposal provides for both one time and ongoing revenue generation for the City as outlined below.
Over 20 years, the City could receive revenues of $17,403,750 (minimum annual guarantee for 15 kiosks) to $26,556,353 (Ike’s projections) if only Phase I is completed. If the City options for Phase II, total revenues over the life of the agreement term could range from $34,807,500 (minimum annual guarantee for 30 kiosks) to $53,112,706 per Ike’s projections.
FISCAL ANALYSIS
The Adopted Budget for Fiscal Year 2025-2026 does not include projected revenue from the proposed agreement with Ike Smart City, LLC. If Council approves the proposed agreement, the City can amend the budget to include the additional projected revenue after the agreement is executed and the kiosks are installed. According to Ike’s proposal, the City is projected to receive $500,000 once one kiosk is installed and operational and a minimum of $50,000 in revenue per kiosk per year up to 15 kiosks, for the first 5 years, which would yield a minimum of $750,000 annually during this period. This revenue could increase depending on the net revenue generated by the program and the terms of the revenue share in the proposed agreement.
ENVIRONMENTAL ANALYSIS
The project meets the criteria for categorical exemption under the California Environmental Quality Act (CEQA) Guidelines (California Code of Regulations Title 14) Sections 15301(c) (Class 1), 15303 (Class 3) and 15304 (Class 4) as described in the CEQA Memorandum (Attachment 2) prepared by Dudek. As is described in the CEQA Memorandum (Attachment 2), none of the exceptions to Categorical Exemptions described in CEQA Guidelines Section 15300.2 apply. It is recommended the City Council adopt the foregoing finding of exemption.
ATTACHMENTS:
1. Proposed Agreement with Ike Smart City, LLC
2. CEQA Memorandum
MOTIONS:
That the City Council:
1. Adopt a finding that the interactive digital kiosk program is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15301(c) (Class 1), 15303 (Class 3) and 15304 (Class 4), and that there will be no cumulative impacts or significant impacts, as described in the CEQA Memorandum;
2. (If desired) Approve an agreement with Ike Smart City, LLC for the implementation of an interactive digital kiosk program, including commercial advertising, along City sidewalks and in the public right-of-way;
3. Authorize the City Attorney to review/prepare the necessary documents;
4. Authorize the City Manager to execute such documents on behalf of the City; and,
5. Provide direction to the City Manager as deemed appropriate.