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CITY COUNCIL AGENDA REPORT
City of Anaheim
CONVENTION, SPORTS & ENTERTAINMENT
DEPARTMENT
DATE: JULY 23, 2024
FROM: CONVENTION, SPORTS & ENTERTAINMENT DEPARTMENT
SUBJECT: AGREEMENT BETWEEN SMART CITY NETWORKS AND THE
CITY OF ANAHEIM DESIGNATING SMART CITY NETWORKS
AS THE EXCLUSIVE TECHNOLOGY SERVICES PROVIDER
OF THE ANAHEIM CONVENTION CENTER
ATTACHMENT (Y/N): YES ITEM # 05
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion,
1. Approve the Agreement between Smart City Networks, Limited Partnership (SCN) and the City of Anaheim (City) designating SCN as the exclusive technology service provider throughout the Anaheim Convention Center.
2. The Agreement will include a base term of seven (7) years and at the end of the seventh year, the City and SCN by mutual consent, may renew for three (3) additional one-year terms.
3. SCN submitted a financial proposal that commits to paying the City a license fee of 60% of gross revenues on technology services; 3% Technology Reserve Fund; and Capital Investment in the amount of $2,150,000, consisting of network and infrastructure upgrades for enhanced technology services.
4. Authorize the Executive Director of the Convention, Sports & Entertainment Department to execute this Agreement and any other related documents, including all actions necessary to implement and administer the Agreement and execute any optional renewals.
DISCUSSION:
The Convention Center is a leader in the management and operation of convention centers. As an Enterprise fund, one of the Convention Center’s primary goals is to manage the facility in a financially responsible manner that maximizes annual operating revenues with the goal of equaling or exceeding our annual operating expenses. The operating revenues that will be generated as a result of the Agreement with SCN contribute to reaching this goal.
Agreement between Smart City Networks and the City of Anaheim Designating Smart City Networks as the Exclusive Technology Services Provider of the Anaheim Convention Center July 23, 2024
The Convention Center first entered into an Agreement designating an Exclusive Technology service provider in 1986. As stated above over the last five years, the exclusive provider has generated $36.2 million in sales resulting in $16.6 million in commissions paid to the City over this timeframe.
The current agreement is set to expire on September 30, 2024. SCN was previously awarded this Agreement in 1986, 1996, 2008 and 2014.
On March 7, 2024, Convention Center staff issued an RFP to 177 self-registered vendors via the City’s Planet Bids system under the categories of Telecommunications Services (Not Otherwise Classified) and Telephone Systems/ Engineering seeking qualified vendors for the opportunity to be named the Exclusive Technology Services Provider.
The RFP invited all prospective bidders to participate in a mandatory pre-bid conference; identify their experience and qualifications to provide technology services; identify the operating plan and infrastructure management of services to be provided to clients and tenants of the Convention Center; to provide sufficient documentation to demonstrate its financial resources to meet the operating requirements, including inventory and staff; and to prepare a detailed business and marketing plan to support the proposed commission to be paid to the City.
On March 19, 2024, representatives from 8 firms that provide technology services attended the mandatory pre-bid conference.
Following the mandatory pre-bid conference, two Addendums to the RFP were distributed through the City’s Planet Bids portal. On April 16, 2024, bids were due and a total of three (3) bids were received.
The Convention Center established an Evaluation Panel and assigned this group the task of reviewing each proposal in accordance with the requirements identified in the RFP. The Evaluation Panel was comprised of the following persons: Mindy Abel, Deputy Director Sales & Services Anaheim Convention Center; Dan Lee, Deputy Director Administration & Operations; Tom Morton, Executive Director Convention, Sports and Entertainment, David Hernandez, Financial Services Manager Anaheim Convention Center and Monica Vera, Contracts Administrator Anaheim Convention Center.
The proposals were evaluated based on the five areas defined in the RFP and listed below:
Experience (100 points)
Operating Plan and Infrastructure Management (200 points) Client Service Approach (200 points)
Financial Proposal (400 points)
Agreement between Smart City Networks and the City of Anaheim Designating Smart City Networks as the Exclusive Technology Services Provider of the Anaheim Convention Center July 23, 2024
Financial Strength (100 points)
The Evaluation Panel found all three (3) proposals responsive and was pleased with the conscientious effort made by each of the bidders. Proposals were received from the following and ranked as listed below:
1. Smart City Networks
2. Hospitality Network LLC
3. Encore Group (USA) LLC
The decision to award the proposed Agreement to Smart City Networks was based on the following strengths:
Experience:
SCN is one of the largest providers of technology and telecommunications services for convention centers, hotels and hospitality venues, providing services to these venues in 17 states.
Over the past thirty-eight (38) years, SCN has a proven service record working with Convention Center clients and exhibitors, as well as serving as a valuable partner for the provision of these services to various internal city meetings held in the Convention Center. Their inventory of equipment and technical expertise continues to fully meet the needs of the Convention Center’s clients.
Operating Plan and Infrastructure Management:
Smart City Networks has a national support structure consisting of trained technicians, engineers, regional managers and a national director who oversees all property operations for safety and consistency. They offer a refined wired and wireless infrastructure that enables delivery of a comprehensive range of permanent and temporary services throughout the venue.
Client Service Approach:
SCN is equipped with the technology and expertise necessary to guarantee seamless connectivity for event planners, exhibitors, and attendees at the Convention Center.
Financial Proposal:
SCN submitted a financial proposal that commits to paying the City a license fee of 60% of gross revenues on technology services; 3% Technology Reserve Fund; and Capital Investment in the amount of $2,150,000, consisting of network and infrastructure upgrades for enhanced technology services.
Financial Strength:
Agreement between Smart City Networks and the City of Anaheim Designating Smart City Networks as the Exclusive Technology Services Provider of the Anaheim Convention Center July 23, 2024
Smart City Networks presented complete financial documentation as required in the RFP.
IMPACT ON BUDGET:
Revenues generated from this Agreement will be used to support the Convention, Sports & Entertainment’s departmental operations.
Respectfully submitted,
Thomas Morton, Executive Director
Convention, Sports & Entertainment Department
Attachments:
1. Smart City Networks Technology Services Agreement
2. Exhibit A (RFP)
3. Exhibit B (Bid Proposal)