Modern wireless communication and sensor technologies enable ubiquitous sensing through distributed agents in various networks. In the context, collaborative interaction of Internet of Things (IoT) connected end-user devices enables achieving certain goals. In this study, we aim at introducing a holistic distributed framework that enhances operational performance of smart cities infrastructures. Then, we explain a fully distributed consensus + innovations approach for coordinating among agents. Our proposed consensus + innovations sits at the core of the proposed framework. In a nutshell, our distributed algorithm achieves a distributed solution for a collaborative decision making problem through iterative agent-based computations and limited inter-agent communications. This algorithm enables fully distributed coordination of agents, plug-and-play capability, and scalability of the solution algorithm for future network expansion.