A California-based company will soon provide new software to handle ticket sales at Mosaic Place after the municipality ended its relationship with Ticket Rocket.
During its Sept. 8 regular meeting, council voted 6-1 to have city administration sign a master software and services agreement with Paciolan LLC for an initial seven-year term, with an option to renew for an extra three years.
In return, Paciolan will provide the software and support services to supply ticket services at Mosaic Place and for other third parties, such as the Moose Jaw Warriors. The company will create and maintain a website for ticket transactions, while the agreement also allows the city to participate in regional ticket opportunities.
Coun. Brian Swanson was opposed.
Background
City hall and Ticket Rocket mutually ended their relationship on May 29 via a settlement agreement, a council report explained. The municipality later issued a request for proposals, and after an evaluation committee reviewed the six submissions, Paciolan was chosen as the best option.
“City administration engaged in negotiations with Paciolan with the goal of establishing the terms of a draft agreement that would be fair and agreeable to both parties,” the report said, adding since that time, the agreement has been finalized based on provisions conditionally negotiated.
Council discussion
The rates that Paciolan offered were favourable, with one perk being the company would deposit the money every seven days, said city manager Jim Puffalt. The ticket provider will create a robust website to handle ticket sales, while it can also offer analytics and marketing support.
“They are very state of the art and advanced for this type of project,” he continued, pointing out Moose Jaw now has the software franchise and can acquire commission when other communities or organizations — such as the Western Hockey League (WHL) and the Saskatchewan Junior Hockey League (SJHL) — use it.
Coun. Scott McMann wondered when the contract would start, pointing out with the pandemic still in effect, there wasn’t much potential to sell tickets.
“It just seems a bit odd to me that we’re entering a contract with minimum ticket sales when we can’t sell any,” he added.
It will take two months to have everything up and running, and since the hope is to have events happening by Christmas, the website needs to be in place, explained legal counsel Raelynn Mechelse. In particular, the WHL expects to start play by December, so Paciolan needs an eight- to 10-week lead time to prepare for the Warriors’ return.
It seemed odd to Coun. Dawn Luhning that the initial term of the contract was seven years when she thought it would normally be three to five years with a renewal option.
“It worries me with the experience we have had with the previous (ticket provider). Can we negotiate?” she wondered.
Negotiations are mostly settled, while seven years is the industry standard, Mechelse said. City hall could reopen the discussions if council felt strongly about the contract length.
Concerns with bidding process
Swanson had concerns with the request for proposal process, pointing out the municipality had to purchase equipment from Paciolan while it didn’t from other bidders. Being forced to purchase used equipment made the new deal more expensive; he couldn’t think of any past situation in which council had to purchase used equipment like this.
He was also concerned that the company had a guaranteed annual minimum fee.
Some proponents had a guaranteed annual minimum fee, which is common in the industry, said Mechelse. Paciolan said it had that fee to offer competitive pricing. Meanwhile, other bidders had higher annual fees and additional licensing and start-up fees.
As for the used equipment, the company advised city hall that the gear had been shipped to a warehouse and not opened, which qualifies it as used, she added.
Swanson was curious how Moose Jaw would benefit economically to have the province-wide licence for Paciolan. In response, Puffalt explained the economic benefits would flow to Mosaic Place, which would reduce the subsidy that the municipality provides.
The next regular council meeting is Monday, Sept. 21.
