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APPROVE EVENTS CENTER CAPITAL IMPROVEMENT PROGRAM BUDGET TO ALLOW SMG TO ENTER INTO A CONTRACT WITH CLICK EFFECTS FOR THE REPLACEMENT OF THE VIDEO PRODUCTION SYSTEM AT THE STOCKTON ARENA AND STOCKTON BALLPARK
recommended action
RECOMMENDATION
It is recommended that the City Council approve by motion an amended 2015-2019 Capital Improvement Plan budget to allow SMG to enter into a contract with Click Effects in the amount of $55,500 for the replacement of the video production at the Stockton Arena and Stockton Ballpark.
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Summary
Click Effects Pro-AV is a software and hardware interface located in the equipment rooms at the Ballpark and the Arena and is used by the production team for event video presentations and sponsor marketing. The City purchased Click Effects Pro-AV in 2005 and after 10 years, the software and related hardware is failing. Considered obsolete and no longer supported by the manufacturer, system repair is not an option. SMG, the City’s contracted facility management company, needs to replace the system with a newer version of a compatible product.
Staff is recommending that Council approve a motion to amend the 2015-2019 CIP Budget to allow a contract between SMG and Click Effects for the purchase in the amount of $55,500. If Council approves the proposed motion the Fiscal Year 2014-2019 CIP Budget will be adjusted to defer funding for an urgent, though non-critical lighting project at the Oak Park Ice Arena and move forward with this project instead.
DISCUSSION
Background
SMG evaluated the video production equipment in 2011 as part of a venues assessment which provided the framework for future capital improvement plans. The Click Effects Pro-AV system was evaluated to be at the end of life at the time, but SMG production staff has been able to keep the systems operating in a limited fashion until the graphics programs could be replaced. The Arena and Ballpark were constructed 10 years ago, and many equipment repair and replacement requests by SMG have been delayed due to the City’s financial difficulties.
The system failure is happening in the middle of the Stockton Thunder hockey season and just 30 days prior to the start of the Stockton Ports baseball season beginning in April 2015. This failure affects the City’s ability to provide contractually obligated sports team productions.
Present Situation
At the Arena, the aging product has lost about 80% functionality. The control functions crash during the hockey games making video production services unreliable. The graphics software and related hardware which operates the video board is in failure. Instant replay, video clips, advertising of upcoming events, in-game updates, camera-fan interactions, sponsorship clips, game scoring, safety messages, and related graphics production are affected. As a result of these failures, SMG has to pay production staff for additional work before each event. This additional work consists of staff having to load and create backup files to lessen the impact of the unstable system and provide support to the team when the system fails during a live event.
At the Ballpark, the software and hardware controller for graphics display have completely failed. The Stockton Ports cannot update player statistics, scores, or provide informational video messages and production content.
Click Effects modernized the Pro-AV system into a new product called Cross Fire that can integrate with the current configuration of software and hardware in the video booths without requiring replacement of equipment. The cost for systems, training, and tax would be $55,500.
Facility Maintenance and Equipment Expenditures
The City Council-approved Facilities Management Agreement with SMG gives them the responsibility to negotiate, execute, and enter into material contracts with City approval. It is the City’s responsibility to exercise oversight and review internal controls when large expenditures for facility repairs and equipment projects are planned for the entertainment venues. Venue projects are included in the City’s Capital Improvement Program.
Arena staff researched competitive products but the alternative available products would require significant equipment replacement and incur substantially higher costs, and would not be available to immediately address the problems during the current Thunder season at the Arena, or in time for the start of the Ports season at the ballpark. SMG recommends the immediate purchase of Click Effects, a proprietary product that specifically works with existing equipment which would be installed and available for use within two days after delivery.
Findings
There is urgency to move forward with necessary replacement as failure has occurred repeatedly during the current season of the Stockton Thunder Hockey team, which has resulted in a significant cost impact to SMG to incur additional staffing costs to create back up files in anticipation of the system failures during games at the Arena. The City is contractually obligated to provide specific facilities and services as listed in Exhibit D of the Ice Hockey Team Lease and Exhibit C of the Ball Park License Agreement including software and hardware to operate the audio-visual programs, video system, and scoreboard. The replacement product will provide video production interface, graphics and production software, a video graphics board, a scoreboard controller, and a board diagnostic tool. Additionally, the Ports season at the Ballpark is scheduled to begin in April 2015, further creating an urgent need to address the systems failures at the Ballpark this fiscal year, and not wait until the new fiscal year Capital Improvement Budget is passed.
FINANCIAL SUMMARY
Replacement of the scoreboard software and hardware systems was not budgeted in the 2014-15 fiscal year, but it is needed in order for SMG to provide an appropriate level of service to their consumers and teams. The CIP Budget for 2014-2015 allocated $230,000 in funding for prioritized projects at the Entertainment Venues. To accommodate the unexpected equipment replacement without going over the appropriation of $230,000 originally approved by Council, the CIP Budget will be adjusted and a less critical project to replace lighting at the Oak Park Ice Arena will be deferred until the FY 2015-2016. The other projects for FY 2014-2015 are already underway. The following table provides a summary of the projects and the adjustment that will be made in the FY 2014-2015 CIP Budget. The remaining cost for completion of the Oak Park Ice Arena Lighting will be budgeted in the CIP 2016-2020.
|
2014-15 Approved CIP |
|
2014-15 Proposed Adjusted CIP |
|
|
Energy Management |
$86,000 |
Energy Management |
$86,000 |
|
Chiller Rebuild |
$58,000 |
Chiller Rebuild |
$58,000 |
|
Oak Park Ice Arena Lighting |
$86,000 |
Oak Park Ice Arena Lighting |
$30,500 |
|
Video Production System |
$ 0 |
Video Production System |
$55,500 |
|
Total 2014-15 Approved CIP |
$230,000 |
Total 2014-15 Proposed Adjusted CIP |
$230,000 |