Five Flags Civic Center Annual Report for FY 2020 Copyrighted
September 8, 2020
City of Dubuque Action Items # 2.
City Council Meeting
ITEM TITLE: Five Flags Civic CenterAnnual Reportfor FY2020
SUM MARY: City Manager transmitting the Fiscal Year 2020 Annual Report for Five
Flags.
Five Flags Manager HR Cook, who is employed byASM Global
(formerly SMG), the private management company for Five Flags, will
make a presentation to the City Council on the Five Flags Civic Center
FY 2020 Annual Report and fiscal year-end financials.
SUGGESTED Receive and File; PresentationSuggested Disposition:
DISPOSITION:
ATTACHMENTS:
Description Type
Five Flags Civic Center Annual Report-MVM Memo City Manager Memo
Staff inemo Staff Memo
FY 20 Year in Review Five Flags Civic Center Annual Supporting Documentation
Report
Dubuque
THE CITY OF �
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Maste iece on tj2e Mississi i zoo�•zoiz•zois
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: FY 2020 Year End Annual Report for Five Flags Civic Center
DATE: September 2, 2020
Leisure Services Manager Marie Ware is transmitting the FY2020 Annual Report for
Five Flags. Five Flags Manager HR Cook, who is employed by ASM Global (formerly
SMG), the private management company for Five Flags, will make a presentation to the
City Council on the Five Flags Civic Center FY 2020 Annual Report and fiscal year end
financials.
� �
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Marie L. Ware, Leisure Services Manager
Dubuque
THE CITY OF �
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TO: Michael C. Van Milligen, City Manager
FROM: Marie L. Ware, Leisure Services Manager
SUBJECT: FY 2020 Year End Annual Report for Five Flags Civic Center
DATE: September 1, 2020
INTRODUCTION
The purpose of this memorandum is to request an opportunity for General Manager HR
Cook to share a presentation of the Five Flags Civic Center FY 2020 Annual Report and
fiscal year end financials with the City Council.
BACKGROUND
The City has contracted with SMG (now ASM Global) since 2004 to manage Five Flags
Civic Center. The approved management agreement set up a benchmark. This
benchmark and the formula defined in the agreement are used in the submission of the
budget each year and the establishment of the actual budget for each year of operation.
The benchmark is the amount the City sets for ASM Global (ASM) of property tax
needed to operate Five Flags Civic Center. ASM is challenged to spend less than the
benchmark, thereby reducing the amount of property tax support needed. The
benchmark is calculated by taking total expenses less earned revenue for the Civic
Center, to get the property tax support. This calculation was completed in the beginning
by taking the average actual property tax support spent in FY 2002, 2003, and 2004
($682,091) and then increased annually by an inflation factor.
ASM's goal is to come under the benchmark but if the benchmark is not met, according
to the management agreement, the City must pay any amount over the benchmark.
ASM's incentive to meet and beat the benchmark gives them $0.50 of every dollar
under the benchmark.
DISCUSSION
As the administrator of the management contract for Five Flags Civic Center I meet
monthly with General Manager, HR Cook. At these meetings we review bookings, event
successes, operations, repairs, capital terms and more. On a monthly basis ASM
shares their financial statement with me as well as the Budget and Finance Director
Jenny Larson and Assistant Director of Finance Cassie Ross.
As was shared previously during City Council updates related to COVID the Five Flags
Civic Center will end the year in a deficit (over the benchmark). The closure of Five
Flags Civic Center during the late winter/early spring disrupts the budget and affects the
budget's final fiscal year outcome. General Manager HR Cook on March 21, 2020
shared a cash flow statement if the Center was closed until June 30, 2020. At that time,
the final estimate was ($279,912) over the benchmark. As early as March 10, 2020 HR
began cutting expenses, shutting down services and contracts that could be paused or
cancelled and laying off part time staff and they have turned off and turned down
everything possible in the building. These cuts and cancellations dropped the final
estimate to ($210,000) on April 6, 2020.
ASM requested $120,000 in early April to pay the bills that were coming due for the next
two months. The request was approved, and funds disbursed. ASM was then able to
lower the estimate to ($201,049) in later April based upon further savings identified and
after employees that were laid off and furloughed applied for unemployment. ASM was
able to further cut this deficit to $210,000 and they continued searching for any other
potential ways to lower this amount. ASM requested $80,000 to complete the fiscal
year. This means their total request over benchmark was $200,000, almost $80,000
lower than the initial estimate.
The City has now finished its Fiscal Year end and with the Period 13 closed ASM has
completed the financial review and statements. Of the $200,000 over benchmark
payment that ASM requested from the City $152,428.71 was needed to finish FY 20.
The balance of$47,571.29 from the requested $200,000 has been rolled forward into
FY 21 financials for this current fiscal year.
Six full-time staff are on full furlough through September and five full-time staff are on
part furlough through September. This will be re-evaluated in mid-September as
October shows firm up, reschedule again or cancel.
ACTION REQUESTED
I respectfully request an opportunity for General Manager HR Cook to present the Five
Flags Civic Center FY 2020 Annual Report and fiscal year end financials with the City
Council.
cc: HR Cook, Five Flags Civic Center General Manager
Jenny Larson, Budget and Finance Director
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Among all the industries that have been impacted by COVID-19, the effect has
been especially devastating to the live entertainment business. Large gatherings
are still prohibited in many states. Some of the biggest event promoters have
made significant job cuts, including Creative Artists, William Morris, and Feld
Entertainment. The company behind Cirque du Soleil eliminated 1 ,300 jobs and � � � � � � � � � � � � � �
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filed for bankruptcy protection.
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� Highest Attendance Event: Disney on Ice - 7,139 Guests (7 performances)
� Highest Attendance Single-Day Event: Retro Rewind - 1 ,960
� Highest Beer Sales Event: Cody Johnson - 2,624 Beers Sold ($15,877)
� Busiest Week: February 20-27
• Country Unplugged, Battle for the Bluff Rodeo (two days), DSO Spring
Family Concert, DSO Classics 3 (two performances), Carden Brothers/EI
Kahir Shrine Circus
• Total Attendance: 6,340
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• Highest Attendance Increase: Baitle for the Bluff Rodeo - 81 �o Increase Over FY 2019
• Pre-Potter Party: More than 300 guests attended a special pre-show reception prior to the
Five Flags performance of "Potted Potter," a nationally-touring Harry Potter parody
• Highest Attended Theater Event: All Community Reads: Picking Cotton - 616
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I n October, Five Flags Center partnered with I mOn =' -�' �-- �
Communications to provide FREE wireless internet to Five "
Flags guests. Visitors to the venue can enjoy five hours of � ������� ������
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free WiFi to share photos with friends and family, check in
on social media, and view upcoming events. ImOn ' s
upgrades will also allow Five Flags to introduce future - • - • -
technologies to further improve the guest experience. - . •
- FREE WIFJ
SERVICE
• • • � • Powered by
, ImOn Communications
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FY 2020 H I G H LI G HTS Jen Miller
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M M U N I TY U T R E A H Today the gir�s�,•+;ere treated like Ftock stars Five Flags Center for Disney On Ice Seeing m}�girls smile,
gig�le.]auah is everything these da}�s.y�
Dan&I ba�ight these t�ckets a cou,�le months agc but they+r,ere regular seats. Hotn•ever F�ve Flags
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