Smart City Lands Authority Contract

Heidi Genoist -- Tradeshow Week, 3/14/2008 3:17:00 PM

Locally based Smart City Networks won the bid to handle the Las Vegas Convention & Visitors Authority’s telecommunications needs for the next five years, following a unanimous vote last week by the LVCVA board of directors to approve the proposed contract.

On the board’s recommendation, the Authority operations staff hired outside researchers to help it negotiate contract terms it felt were more beneficial to the Authority and more in line with national trends. Smart City (formerly Facilities Communications Intl.) has been the LVCVA’s exclusive telecom provider since 1998.
The new terms include some changes:

• Smart City will invest at least $2 million in a switch upgrade and possible relocation.

• The contract covers Cashman Center (owned by Las Vegas and operated by the LVCVA) as well as the Las Vegas Convention Center.

• The LVCVA will receive 37 percent of the first $9 million of annual gross receipts for telecom services provided at the LVCC, and 40 percent beyond that.

• The LVCVA will receive 10 percent on all gross receipts for telecom services at Cashman.

• Two percent of all gross receipts for telecom services will also go into a technology fund to be used for maintenance, significant repairs, new technology and upgrades.

• Smart City will add one manager to its LVCC-dedicated team for extra support during the renovation of the convention center.

• Fixed monthly costs for long distance and maintenance will do away with the need to audit individual phone calls.

Board members only balked at the low number of Smart City management staff (five) dedicated to the LVCVA’s needs.
Extrapolating the rough annual amount the telecom provider could net under the contract, board Vice Chair Keith Smith, CEO of Boyd Gaming, asked LVCVA Vice President of Facilities Mark Haley, “So, for $5 million, we get five people?”

Haley was quick to point out the many added services the new contract includes, for instance, preferred audiovisual, cable TV drops, Web hosting, video conferencing and LVCVA personnel training.
In a statement, Smart City President Paul Ashley said, “We’re pleased that the LVCVA has approved our contract, and feel very privileged to work with one of the best convention centers in the country.”