File #: ID 19-0065    Version: 1 Name:
Type: Resolution Status: Passed
File created: 1/22/2019 In control: City Council
On agenda: 3/19/2019 Final action: 3/19/2019
Title: Resolution Approving Bid in the Amount of $1,818,960 and Authorizing the Lease Agreement with Northstate Communications for the Coliseum Complex Wi-Fi Internet System
Attachments: 1. WiFi Evaluation Summ.pdf, 2. MWBE GFE Review Memo-Coliseum Complex WI-FI Internet Lease Agreement.pdf, 3. 19-0065 Resolution - Northstate WiFi Lease Agreement.pdf

Title

Resolution Approving Bid in the Amount of $1,818,960 and Authorizing the Lease Agreement with Northstate Communications for the Coliseum Complex Wi-Fi Internet System

 

 

Body

Department: Coliseum

Council District: District 1

 

Public Hearing: No

Advertising Date/By: No

 

Contact 1 and Phone: Matt Brown, 373-7406

Contact 2 and Phone: Mike Perdue, 373-7457

 

 

 PURPOSE:

City Council is requested to approve a utility service lease agreement between Northstate Communications and the Greensboro Coliseum Complex for a public Wi-Fi internet system to general public mobile devices in Coliseum Complex facilities. This lease agreement will provide a modern custom designed Wi-Fi internet system services for the Coliseum Complex campus. The agreement includes all equipment and a four (4) Gigabyte fiber internet service, all maintenance and repair of the system, etc. for a complete and fully operational public Wi-Fi system in the current Greensboro Coliseum Complex facilities. 

 

This Wi-Fi service will support the general public attending all events, as well as local and national media and promotors of major national championship events.

  

BACKGROUND:

In order to attract future major national championship events and basketball tournaments to the City and Coliseum, including the 2020 ACC Men’s basketball tournament and beyond, the Coliseum Complex must be maintained to a standard compared to other new modern arenas.  On August 5, 2016, the City Council approved $20,000,000 in limited obligation bonds supported by the City’s hotel/motel room occupancy tax to fund Coliseum Capital improvements that also included a new Wi-Fi system. On July 16, 2018, the City Council approved the Coliseum Leasing a Wi-Fi system instead of purchasing a new Wi-Fi system.

 

This lease agreement will provide a complete new modern Wi-Fi system that is specifically designed and engineered for Greensboro Coliseum Complex and provides the latest in servers and antenna access points (AP’s).  The lease agreement that includes maintenance and operation of the system so that the service and transmitters are modern and in good working order for the term of this agreement. 

 

This agreement also includes one (1) Gigabyte of internet service for public Wi-Fi that will be needed at the Steven Tanger Center for the Performing Arts, when it comes online in spring 2020.  One of the key marketing platforms for Tanger Center will be public Wi-Fi service.

 

The Coliseum solicited five national (5) Wi-Fi service providers to provide proposals for a turnkey Wi-Fi system, its operation and maintenance through a lease agreement: Northstate Communications, Spirit Communications, Verizon and IE Communications all provided lease proposals.   

 

A City of Greensboro IT staff review and Coliseum staff selected Northstate Communications as the recommended proposal to support a lease agreement with state-of-the-art equipment service along with sponsorship promoting the service. Northstate’s proposal includes Cisco system equipment, which will match designed equipment in Tanger Center.  City of Greensboro IT staff have been engaged in the project and join the Coliseum in recommending Northstate and the Cisco solution.  Northstate’s proposal is $1,818,960 over the 59 months or $369,958 annual lease payments.  Northstate is also committed to spend $330,000 over 5 years or $60,000 per year in Marketing Sponsorship plus $30,000 to promote the new service.

 

Proposal                         Equipment                Proposal Price             Marketing Reinvestment

Northstate Comm.           Cisco                          $1,818,960                    $330,000

Spirit Comm.                   Ruckus                       $1,620,000                    $123,750

Verizon                            Extreme                     $3,791,320                    $492,156

IE                                     Cisco                          $3,813,727                    $200,000                      

 

Note:                     Northstate and Spirit proposals include internet bandwidth service at the Coliseum and Tanger Center.     The other two proposals do not include any service.

 

COST SUMMARY:                                                                                    Annual Lease Payment:

Year 1 (Feb 1, 2020-Dec.31, 2020):                                                               $339,128 (11 months)

Year 2 (Jan 1, 2021- Dec 31, 2021):                                                               $369,958

Year 2 (Jan 1, 2022- Dec 31, 2022):                                                               $369,958

Year 4 (Jan 1, 2023- Dec. 31 2023):                                                                $369,958

Year 5 (Jan 1, 2024- Dec. 31 2024):                                                                $369,958

                     

 

The City’s M/WBE goal setting committee voted to not require an M/WBE goal on this project due to lack of M/WBE's availability to provide, install, or service a commercially engineered Wi-Fi system. Five (5) national firms with significant experience in large scale public Wi-Fi systems were solicited.

 

The City goal setting committee recommended that if the selected Wi-Fi vendor has a need to subcontract any of the fiber or Cat 6 wiring installation and/or conduit installation, that local M/WBE firms will have the opportunity to provide proposals for such work. Northstate

Communication has agreed to subcontract the cabling installation to C2 Contractors, LLC at an estimated value of $25,000.00. 

 

 

BUDGET IMPACT:

This lease will be funded out of the annual Coliseum maintenance and operations budget as a budgeted monthly expense in account number 521-7535-06.5250.

 

RECOMMENDATION / ACTION REQUESTED:

The Coliseum Complex and the City of Greensboro’s IT department recommend the City Council to approve this public Wi-Fi system lease agreement for services with Northstate Communications.