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.