8.3 Bicentennial Center Scoreboard Acquisition
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
06/04/2007 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR
NO: 8 AGENDA:
BICENTENNIAL CENTER
ITEM
NO. 3
BY:
BY: Keith Rawlings
Page 1
ITEM:
Acquisition of electronic scoreboard, equipment and related advertising displays.
BACKGROUND:
On February 14, 2005, the City Commission authorized a project to enter into a marketing plan with
Daktronics Sports Marketing, Inc. (DSM) in order to pay for needed electronic improvements in and
around the arena – primarily a new scoreboard. Working with DSM, the Bicentennial Center acquired
four (4) corporate sponsors who were willing to commit to terms of 3 to 10 years of sponsorship in
exchange for advertising opportunities in the Center.
On December 11, 2006 the commission authorized us to proceed with a lease-purchase of the
necessary equipment and signage needed to satisfy the terms of the advertising agreements with the
new sponsors. The pu rchase price of the equipment at that time was to be $194,000 and would
require financing of approximately $135,000 to $140,000.
On January 22, 2007 we again approached the commission to finalize the project and to authorize the
funding mechanism. It w as the commission’s preference that the project be financed internally with
General Fund resources, rather than utilize the option of a lease-purchase with all of the ramifications
of tax law restrictions and higher interest rates.
Before we were able to obtain all of the final signatures on the four sponsorship agreements, another
potential sponsor came forward and expressed a desire to be a part of our project. We came to
agreement with them and that resulted in another 10-year sponsorship, bringing our total sponsors to
five (5). This additional sponsor permits us to significantly upgrade the equipment we need at a
modest increase and still increase the funds returning to the General Fund to pay for the project.
As a result, the purchase price of the equipment has increased by a little over $15,000 (from $194,000
to $209,250), but the potential return has increased by $30,000 (from $251,550 to $281,550).
FISCAL NOTE:
ANNUAL ADVERTISING REVENUE CASH FLOW
Current Status
January 22, 2007 Status
YEAR Advertising Potential
Advertising Potential
Commitment Commitment
Commitment Commitment
$102,850 $102,850
2007 $ 99,850 $ 99,850
$ 22,850 $ 22,850
2008 – 2009 $ 19,850 $ 19,850
(per year)(per year)
(per year)(per year)
$ 19,000 $ 22,850
2010 – 2016 $ 16,000 $ 19,850
(per year)(per year)
(per year)(per year)
$281,550 $308,500
TOTAL $251,550 $278,500
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
06/04/2007 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR
NO: 8 AGENDA:
BICENTENNIAL CENTER
ITEM
NO. 3
BY:
BY: Keith Rawlings
Page 2
CONFORMANCE WITH THE STRATEGIC PLAN:
The project is in conformance with the strategic plan in that the proposed facilities contribute t o a
thriving social environment, demonstrates community pride and supports an appealing quality of life.
In addition, the strategic plan provides that the “City Commission will have committed to providing the
highest quality city services possible within available resources.”
The Capital Improvements Policy provides that: Priority consideration will be given to “… projects
which specifically replace or renovate an essential but obsolete facility” and “projects which are funded
in whole or in part by leveraged or partnership funding, including grants, private funds, etc.”
The Fund Balance Policy provides that when year end fund balances in the general fund exceed the
target and the budget estimate, the City Commission may consider use of those funds for on e time
expenditures which do not substantially increase operating costs or to shift capital projects from bond
financing to cash financing to reduce future costs.
COMMISSION ACTION:
It is recommended that the City Commission reauthorize the project in t he amount of $209,250,
utilizing the same general fund resources