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Five Flags Private Mgmt D~~~E ~ck~ MEMORANDUM April 14, 2004 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Work Session - April 19, 2004 Study to Privatize Management of the Five Flags Center Attached please find the material for the work session on this matter. Leisure Services Manager Gil Spence will make a brief presentation. City staff will then be available to answer any questions you might have. I am also aware that members of the Five Flags Advisory Commission and the private firms may be in attendance. ('1JJl ~ /ì¡ L-- Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Gil D. Spence, Leisure Services Manager CITY OF DUBUQUE, IOWA MEMORANDUM April 14,2004 TO: Honorable Mayor Terry Duggan and Members of the City Council FROM: Rod Bakke, Chairperson Civic Center Advisory Commission SUBJECT: Private Management of the Five Flags Center INTRODUCTION The purpose of this memorandum is to communicate to the City Council the Civic Center Advisory Commission's recommendation regarding the issue of private management of the Five Flags Center. BACKGROUND As the division review process went along, the staff kept the Commission informed of what was being done. When the Request for Proposals for private management was developed, a copy was provided to the Commission, They reviewed each of the three proposals and when it was decided to interview the three firms that responded, two commissioners were invited to be on the interview team (Mike Brannon and Rod Bakke represented the Commission), A staff report was given to the Commission to assist the decision making process. At the Commission's March 15, 2004 meeting (minutes attached) a full discussion was held on the issue with the three firms and several user groups present The Commission decided it needed more time to review and study the issue and scheduled their April meeting for April 12th to decide on a recommendation for the City Council. DISCUSSION All three firms that submitted proposals were present at the Commission's April 12, 2004 meeting, plus representatives of two user groups, and the Teamster Local 421, continued FF Commission memo to Council page two When discussing the issue, the Commission expressed great concern for the present staff at the Center. Many are long-term employees of the City of Dubuque and the Commission would like to see employment, pay and benefits retained, as much as possible for both the union and non-union employees. All Commissioners expressed interest in, and general support for, private management The following were some of the advantages given for private management: Energize the profit making aspects of the Center with new events, innovative ideas and possible naming rights, . Strengthening marketing, public relations and promotion . Expose Center staff to additional resources to enhance their areas of responsibilities . Add sound business practices and organizational structure . Expand our horizons and create a new outlook as we prepare for the future . New ideas using advice and assistance from the management firm . Try to change some public perception of the Center, that we are not as progressive and not up-to-date as we should be Prepare for the future/change when change is needed. Be open to innovation, Put us in touch with entertainment venues that we have not had access to and keep up-to-date with changes in the industry After much discussion, the Commission voted unanimously to recommend to the City Council that private management be pursued for the Five Flags Center. Discussion then turned to which of the three firms should be recommended to provide the private management service. All commissioners felt all three firms were good candidates to provide the management services. Concern was expressed that Kinseth lacks experience managing a facility like Five Flags. It was felt they could learn the business but we need someone that can hit the ground running in all aspects of managing the center. Strengths of Compass that were listed by the Commission included: . Steve Peters, President, was the first manager of Five Flags and knows our facility and community. He will be our contact person and we would have his cell phone number to contact him any time, continued FF Commission memo to Council page three Knows our market place and focuses their operation on facilities in medium to small markets such as ours. Is the best fit for Dubuque considering their experience with ice and theater facilities in the Midwest. Strengths of SMG that were listed by the Commission included: . Tremendous company with great track record nationwide . Ability to lean on larger acts and bigger venues to get them to perform in Dubuque . Since their other facilities are a good distance from Dubuque, they will compete less with our revenue. . Opportunities for career paths for staff Three commissioners expressed their support for Compass and two expressed their support for SMG, When a motion was made to recommend Compass to provide the private management services, the motion passed on a 3 - 2 vote, Some commissioners will attend the April 19th work session and will be happy to address any of your questions then, RB:et attachment CITY OF DUBUQUE, IOWA MEMORANDUM March 31, 2004 TO: Michael C, Van Milligen, City Manager FROM: Gil D" Spence, Leisure Services Manager SUBJECT: Study to Privatize Management of the Five Flags Center INTRODUCTION The purpose of this memorandum is to communicate the final report on private management of the Five Flags Center" BACKGROUND At the City Council goal-setting session in August 2003, the City Council asked that a study be done of the operation of the Five Flags Center to see what could be done to hold the line on, or reduce the property tax support" All options were to be considered, including private management The privatization review was completed with the review committee comprised of the following individuals: Gil Spence """""""""""""""""""""""" Leisure Services Manager Paula Jo Wolfe """".."..,.."..,......""",,, Civic Center Division Manager Peggy Degnan """""""""""""""""""" Events Coordinator John Richardson """"""""""""""""""" Acting Operations Supervisor Pauline Joyce """""",,",,",,",,",,",,,,,",," Administrative Services Manager Cindy Steinhauser """",,",,",,",,",,,,,",," Assistant City Manager Dawn Lang """"""""""""""""""""""" Budget Director Rich Russell """"""""""""""""""""" Building Services Manager continued privatization of FF management page two A "Request for Proposals" was developed (copy attached) and mailed to five different firms. The following three firms submitted proposals on February 2, 2004: SMG 701 Market Street Philadelphia PA 19106 Kinseth Hospitality Group 2 Quail Creek Circle North Liberty IA 52317 Compass Facility Management, Inc, Suite 200 Park Plaza Building 6th and Duff Streets Ames IA 50010 The committee, along with Civic Center Advisory Commission members Mike Brannon and Rod Bakke, interviewed all three firms on February 23rd. DISCUSSION To aid the City Council decision on whether to privatize the management of the Five Flags Center or not, the committee developed the following list of issues and questions for consideration when making the decision: . Will private management change the mission and vision of the Center? . Is the decision to privatize based on subsidy reduction, how the building would best operate, or both? ,/ In the approach to subsidy reduction, should we emphasize increased revenue or reduced expenses? Increasing the number of ticketed events will increase tourism, which in turn generates increased hotel/motel taxes, sales tax, parking fees and other such items that directly impact the City's budget . If the bottom line is a main concern: strict enforcement of the no carry-in food and drink policy, rental rates, and other charges needs to be done regardless of whether the facility is publicly or privately managed. This will impact a number of existing user groups. . All three proposals speak of growing the business. When non-ice hours are increased, ice users will have less ice time, If ice programming is expanded, non- ice users and present ice users will have less time, . Does the City of Dubuque want to change the name of Five Flags by selling naming rights whether the facility is publicly or privately managed? . To what extent should the impact of privatization on the present staff be part of the consideration? As the committee studied the concept of private management, the following advantages and disadvantages were identified: continued privatization of FF management page three . Advantages ,/ possible reduction in subsidy ,/ improved marketing of the building on a local, regional and national level ,/ larger network available to attract a greater number and variety of spectator shows to Dubuque ,/ increased communication with peers in other facilities to discuss problems, issues, and touring shows ,/ customer service, and other training opportunities for employees ,/ part of a larger purchasing network for equipment and supplies . Disadvantages ,/ impact on employees - some may lose their jobs and benefits ,/ loss of local control, although this can be reduced in the final agreement ,/ There is a fee to be paid the management company that will initially increase the tax support, ,/ loss of civic responsibility in the way the building operates Attached is a summary sheet prepared by the committee for each of the three firms that were interviewed, The summary sheets outline the terms each proposes for the agreement, examples of how they will save money, strong points and weak points, For ease of comparison of the terms each proposes, the City pays all expenses and collects all the revenue, The subsidy all three firms refer to is the tax support for FY 2004 shown in the RFP, except SMG, which uses an average of the last three years, If the City Council decides to pursue private management, the committee recommends the proposal from SMG be selected, The committee feels the SMG proposal is the strongest for the following reasons: . They are a large firm and have transitioned many facilities from public to private management . With 168 facilities that they manage, SMG has so much power in the business they are able to bypass some promoters and work directly with agents of the entertainers, . They have a large purchasing power for equipment and supplies, including such big items as dasher boards, continued privatization of FF management page four . The committee feels SMG has a greater booking leverage to bring shows and acts to Dubuque. . Understand and accept the no competition clause with the Grand River Center. SMG will focus on generating additional revenue to reduce the subsidy while looking for cost saving measures. . Extensive experience managing entertainment shows and acts, . Staff that is retained will have salaries and benefits equal to, or better than, what they have, except their retirement system will change and they will no longer accumulate credits toward the Iowa Public Employees Retirement System, The review committee also studied the City's operation of the Center to analyze operational efficiencies and procedures to determine if the tax subsidy can be reduced. A detailed report accompanies this memorandum for your review. The following is a list of the recommendations included in that report: . The capital improvement and equipment items suggested in section three of Executive Summary be further investigated and incorporated into the budget process as funding allows. . Invitation to Bid be sent out to outsource the concession operation. Tax asking reduction from this item is estimated at $40,000. . If the current Building Supervisor is promoted to the vacant Operations Supervisor position, the building supervisor position be down graded to maintenance worker. Tax asking savings would be $10,118. . Naming rights for the Center be sold. To do this, a consultant would be hired and paid a percentage of the naming rights revenue because staff does not have the time and expertise to do this. Since this is such an unknown, no estimate will be made as to how much tax asking reduction there could be. . A more aggressive approach be taken to co-promote and self-promote events. This assumes some financial risk, but could yield financial reward. . Further study maximizing use of the building during slow months. . To improve the bottom line, strict enforcement of the no carry-in food and drink policy will be done. continued privatization of FF management page five The FY 2005 operating budget submitted by staff reduces the property tax support by $24,619 over the FY 2004 benchmark of $741 ,000 used by the three firms that submitted proposals. When that amount is added to the recommendations listed above, a property tax savings of $74,737 would result. This is without any naming rights or business growth being factored in, If we are to grow business much beyond where we are now, we will need to look at shuffling some positions. Maybe eliminating a maintenance position and creating a marketing type position, Also, we are seeing growth in the concession business and the civic center manager thinks we may eliminate the property tax support for that activity, If we can do that, we may want to keep that operation in-house, but the same $40,000 savings would result ACTION STEP This report is submitted for City Council review. Action requested is that the City Council provide direction on whether private management should be pursued or not. GDS:et attachments FIVE FLAGS CIVIC CENTER COMPASS PROPOSAL Terms . 5 years, with two three-year renewal options . $84,000, annual CPI adjustment plus 20% of operating budget savings and 5% of naming rights and advertising revenues Penalty for non-performance - waive variable fee equal to shortfall FY 2004 tax asking of $741 ,000 will be used as the subsidy benchmark. Examples of how they will !!y! money . Grow business . Advertising and sponsorships Naming rights . TicketMaster, $15,000 plus Non-profit organizations provide workers for concession stands and as ushers Reduce City's subsidy level by up to one-third, including Compass fees, in three years . Savings in staff costs of $74,040 Strong points Management services to mid-side and smaller markets Experience working with local boards . Three management meetings each year, bi-weekly conference calls, annual meeting of all department heads and managers of all Compass facilities, and training sessions for specialized areas and services Strategic Visioning Program . Transition Plan Retain employees, review performance after six months . Summer theater program In-house ice programming Clearer vision of tertiary markets Raise funds to renovate concession stands now Four other Compass historic theater network Most of their facilities are mixed use, ice and non-ice, Daily e-mails of what acts/events are touring Has transitioned a number of public facilities to private management Has no problem with the no competition clause with the Grand River Center Weak points How will Cedar Rapids and Davenport facilities compete with Five Flags Impact on staff Reduce secretary to part-time Eliminate one utility worker . Reduce all salaries . Add business office coordinator . Add marketing manager FIVE FLAGS CIVIC CENTER SMG PROPOSAL Terms 5 years . $75,000 per year, annual CPI adjustment plus 50% of operating budget savings (not to exceed $250,000) . Will contribute $75,000 toward revenue generating projects . Tax asking from the last three years will be used as the subsidy benchmark. Examples 2f how they will save money . Grow business (May - September) . Advertising and sponsorships Non-profit organizations provide workers for concession stands . TicketMaster contract Strona points Manage 168 facilities, 142 are government owned and they transitioned them to private management Customer service training . Quarterly meetings - Contract Administrator, General Manager, SMG Regional Manager, bi-weekly conference calls, and daily e-mails Re-branding of Five Flags Center Same person will be the transition person, contact person, and regional booking manager . Work directly with some agents Salaries and benefits equal to or better, stress career path for employees, and honor seniority Mystery shopper program Maintenance software Stronger network - maybe we could get favors . Most of their facilities are mixed use, ice and non-use Facilities are a further distance apart and will compete less with each other Has no problem with the no competition clause with the Grand River Center Large purchasing power for equipment and supplies, including such big items as dasher boards Weak points Contact person lives in Florida Impact on staff Eliminate concession manager Eliminate two utility workers . Add marketing / sales coordinator . Add bookkeeper / payroll . Add director of finance and concessions FIVE FLAGS CIVIC CENTER KINSETH PROPOSAL Terms . 5 years . $24,000, plus 50% of operating budget savings . FY 2004 tax asking of $741 ,000 will be used as the subsidy benchmark. Examples of how they will save money Labor cost savings in administration, property maintenance, and sales National contracts and purchasing power . Concession management New business . Partnerships . Advertising . Naming rights Strona points . Create a group sales program for people coming to the hotel . Good food and beverage experience . Sales people in their other hotels . Synergy between hotel and Five Flags . Experience with floor shows . Package show tickets with hotel room . Twenty-four hour telephone answering Weak Points Hotel sales department would be contact to schedule events Lack of experience - confident they can learn ,/ stage shows ,/ working with event promoters ,/ ticket office management ,/ ice scheduling and management No leverage to attract events . Concerned about not being able to schedule conferences and would want to re-visit the no competition with the Grand River Center clause prior to signing final agreement Impact on staff Keeps only the Event Coordinator and Technical Director Positions eliminated and responsibilities assumed by Holiday Inn staff include: civic center manager, operations supervisor, secretary, concession manager, building supervisor and two utility workers. Dubuque Five Flags Center Mission Statement We provide an economic stimulus and diverse life enriching experiences for the people of Dubuque and the tri-state area, in a safe and well-maintained facility and [with] support services for event hosts and their guests, Operatina Culture Statement We are a knowledgeable, skilled, and flexible team of service-oriented professionals who help create an enjoyable experience for users and guests of the Five Flags Center. Kev Result Areas (KRAs) We will focus on the following key result areas to assure we achieve or mission while demonstrating the attributes of our desired operating culture. Physical Plant Management It is essential that we have a safe, well-maintained and accessible facility that provides a pleasant and functional environment for events. We believe: >- The condition and appearance of the building is a reflection of our staff and our city, >- Safety is everybody's responsibility. >- Changes in the facility must reflect changes in our role in the community, . Accommodate a variety of events, Respect historical significance. Critical Objectives: 1, Maintain compliance with all codes - Building, Fire, Safety, ADA, Health, OSHA, etc, 2, Facility maintenance process in place, including annual "spring cleaning." 3. Develop and maintain a preventative maintenance program, 4. Maintain a five-year capital-improvement program, Events Management Our internal processes must consistently result in an efficient and positive experience for our users from the point of first contact through final settlement. We Believe: >- Delivering on commitments builds organizational integrity, >- Event management is a seamless team driven process ~ The process can always be improved, ~ Process improvement is a team responsibility ~ Team members are individually and collectively responsible for execution of the process, ~ Every interaction with a user is an opportunity to foster the relationship, ~ Open dialog leads to mutual understanding. Critical Objectives: 1, Develop and maintain a building policy manual. 2, Develop and maintain a comprehensive event process flow document. 3, Develop and maintain a User-friendly contract developmenUinsurance process, 4, Develop and implement an "Event Evaluation" tool for users, 5, Develop and implement a "Post Event" documentation process. 6, Schedule and conduct pre and post season hockey team building session, Marketing and Public Relations Positive visibility among event planners and promoters along with a reputation for delivering value and service will assure we attract and retain a solid base of users, We believe: ~ Reputation is an early selection criterion for users. ~ Visibility and awareness are key components of marketing, ~ The image of The Five Flags Center is inseparable from and contributes to the image of the events we host ~ An active presence in the "events" industry helps build visibility and awareness. Critical Objectives: 1. Develop and maintain an "Event Industry" marketing strategy (IAAM), . Manager attends IAAM meetings/conference 2, Develop and maintain a "Facility Awareness" (in the industry) strategy, 3, Develop and maintain a list of local and regional media contacts. 4, Develop and implement an "Events Awareness" strategy. Customer Service It is incumbent upon all our staff to proactively manage the experiences of our guests, We believe: » Customer service is an attitude - a habit of thinking and behaving. » Customer service is measured in terms of perceptions. » Perceptions are derived from experiences, » Every interaction with a customer is an opportunity to create a positive perception, » Our success depends on user's success. Critical Objectives: 1, Develop and implement customer service training program for key employees, 2, Develop and implement a customer service feedback tool. Fiscal Responsibility We have an obligation to prudently balance our mission to serve the diverse needs of the community with the financial support from the citizens of Dubuque. We believe: » The citizen's expect and deserve value for their investment in The Five Flags Center. » Diverse life-enriching experiences are an investment in the community's quality of life, » Users and customers are willing to pay for value, » Value is determined by perceptions in the market place, Critical Objectives: 1, Meet all budget guidelines set by City Council. 2. Review and revise performance measures of our budget document 3, Calculate and track "economic impact" of events, 4, Review staffing levels for different types of functions. 5. Develop and conduct an annual review process to assess fees and charges. " CITY OF DUBUQUE, IOWA January 6, 2004 REQUEST FOR PROPOSALS FOR MANAGEMENT OF THE FIVE FLAGS CENTER The City of Dubuque, Iowa is soliciting proposals from qualified firms to provide management services for the Five Flags Center. The City Council has asked staff to explore private management às a means to hold the line on, or reduce, the level of property tax support now provided the Center. Included with the Request for Proposals is material that describes the Center and the current activity level. Dubuque is located on the Mississippi River west of the Illinois-Wisconsin border and is connected to both states by bridges. It is the educational, industrial, and commercial center for the tri-state area and has a stable and diversified manufacturing base and a growing service sector. The City's Census population is 57,686, The City is approximately 30 square miles in area. The City's annual budget is over $90 million and funds a full range of services. The Dubuque area economy has remained strong with unemployment at record low levels and a steady growth in manufacturing and construction jobs, The city's central retail area serves almost all of the fifteen surrounding counties in Iowa, Illinois and Wisconsin. The last few years has seen major renovation to the four block areas on both sides of the Center. A four block pedestrian mall has been reopened, many restaurants and shops have opened in renovated buildings, companies have moved into the downtown area, There is also substantial commercial activity west of the central business district area along U,S, Highway 20, including an enclosed shopping mall with several national retailers, In 1999, the City approved the construction of over one million square feet of new commercial, office, industrial and institutional space, Residents of the Dubuque area make extensive use of the recreational opportunities afforded by the Mississippi River, which are complemented by the City and County park systems. This includes outdoor swimming pools, picnic areas, ice-skating rinks, baseball diamonds, tennis courts and a public golf course. Several recreational areas are situated on the bluffs overlooking the mighty Mississippi River. The City has a wide variety of cultural offerings including art galleries, theater groups and symphony concerts. In 1985, pari-mutuel gaming was introduced to the community and in 1991, riverboat gambling became an added attraction, The City's Mississippi riverfront is the location of this riverboat gambling and regular cruise boats. The port facilities are located in the historic Ice Harbor area, Dubuque enjoys approximately one million tourists annually and this number is anticipated to grow. continued " The Five Flags Center is located only a few blocks from the Port of Dubuque, which has recently seen construction of the $188 million America's River Project. The America's River project includes: The National Mississippi River Museum and Aquarium, a complex located next to the Ice Harbor; The Grand Harbor Resort and Waterpark, a 200-room hotel and indoor Waterpark along the riverfront; The Grand River Center, a 135,000 square foot education and conference center and a 2000' Mississippi Riverwalk, The National Mississippi River Museum and Aquarium includes: 15 aquariums; Immersion theater showcasing the Mississippi River's creation, floods, history and underwater life; outdoor wetland featuring natural and living history with floating laboratories and classrooms; stream tables; an educational overnight program which lets visitors sleep on a "boat and breakfast" National Historic Landmark steamboat The Grand Harbor Resort and Waterpark includes a seven story hotel with approximately 200 rooms and a 24,000 square foot indoor waterpark, Phase II includes 150 additional rooms and an 18,000 square foot addition to the waterpark, The Grand River Center is a state of the art education and conference center with a 30,000 sq, ft. exhibit hall, 12,000 sq. ft. meeting rooms, 12,000 sq. ft, ballroom, a spectacular River room which extends out over the Mississippi River and over 25,000 sq. ft of indoor and outdoor prefunction space, The Mississippi Riverwalk and Amenities includes a riverwalk which links the Alliant Energy Amphitheater, the American Trust River's Edge Plaza, a landing for the Delta Queen, boat docks, public art and an 18-mile bike-hike trail connection to the Heritage Trail. For additional information on Dubuque and recent initiatives, please visit the following web sites: www.qrandrivercenter.com www.rivermuseum.com www.qrandharborresort.com www.dubuquechambercom www.qreaterdubuque.orq www.americasriver.com .' Section 1.1 Section 1.2 Section 1.3 Section 1.4 Section 1,5 Table of Contents REQUEST FOR PROPOSALS Introductory Letter ARTICLE I GENERAL INFORMATION Facility History Facility Mission Statement, Operating Cultural Statement, and Key Result Areas Contact Timetable Review of Qualifications ARTICLE II QUALIFICATIONS, RESPONSIBILITIES FORMAT AND DEADLINE Section 2,1 Section 2.2 Section 2.3 Section 3.1 Section 3.2 Section 3.3 Section 3.4 Section 3,5 Section 3.6 Section 3,7 EXHIBITS Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 Exhibit 5 Qualifications Responsibilities Format and Deadline ARTICLE III STATEMENT OF QUALIFICATIONS Firm Background General Management Experience Concession and Food Management Facility Operation Note and Restrictions Contract Arrangements Client References Attachments Operating Income and Expense Comparison I FY 2005 Budget Event Days and Attendance Schedule Organizational Chart Literature - Exterior and Interior Mission Statement, Operating Cultural Statement, and Key Result Areas ARTICLE I GENERAL INFORMATION ". Section 1.1. Facility History The history of the Five Flags Center begins on November 10, 1910 with the opening of the Majestic Theater. The Theater was touted as the most beautiful and safest theater in Iowa, modernized down-to-the-minute and booked on a circuit of 87 theaters. Designed by America's premier theater architects C.W, and George L. Rapp of Chicago, the Majestic Theater is an ornate Renaissance Revival style with French and Italian influences. Vaudeville flourished at the Majestic, and some of the most famous performers of the period -- AI Jolson, Eddie Cantor, Sarah Bernhardt, Ethel Barrymore, and others, appeared at the opulent, Majestic show house. Movies replaced live theater in 1929, and the Majestic's name was changed to The Orpheum, The Orpheum remained a movie house for many years, bringing the world of Hollywood to Dubuque. By 1969, however, the theater building was earmarked for demolition. Saved by a group of citizens who felt the theater was an irreplaceable treasure, it underwent an extensive two-year renovation from 1974-1976. The "Five Flags Committee," named after the five national flags that have flown over Dubuque since Marquette and Joliet explored the Upper Mississippi in 1673, raised enough funds to complete the restoration behind the concept of building an adjoining civic center. The restored Orpheum was renamed the Five Flags Theater, and officially reopened on March 13, 1976, Since then, the theater has undergone its second major renovation, Special care was taken to preserve the historic Five Flags Theater with the expertise of the areas premier restoration professionals. The restored theater glows with glittering gold, bronze, copper, and burgundy, On August 17, 1976 a $3,7 million bond issue was passed to construct the Five Flags Center next to the theater and the two buildings became one. The grand opening of the Five Flags Center was held on May 24, 1979 and the building has served the tri-states since. The arena includes 25,000 square feet of unobstructed space, around 1,215 permanent elevated cushioned seats, and bleacher seating for 3,850, Performers such as Bob Hope, Van Halen, Bill Cosby, Kiss, Air Supply, Bob Dylan, The Goo Goo Dolls, The Harlem Globetrotters, Collective Soul, Alan Jackson and Willie Nelson have all been hosted in the arena. In addition to the arena and 711-seat historic theater, the Center has three meeting rooms used for a variety of events and activities, promenade space, office areas and storage. ,--~>~,---~.__.~--~~-_._---~- -"---""" ." Section 1.2. Mission Statement. Operatina Culture Statement. and Key Result Areas See Exhibit 5 Section 1.3. Contact Below is the designated contact relative to this RFP. It is requested that any and all questions be directed to this individual only. Gil D. Spence Leisure Services Manager 2200 Bunker Hill Road Dubuque, IA 52001-3010 (563) 589-4263 Section 1.4. Timetable The City reserves the right to adjust this Timetable should circumstances for adjustment benefit the process, January 5, 2004 February 2, 2004 February 2, 2004 through February 13, 2004 City Council approval of RFP Proposals due back from firms by 5:00 p.m. Review proposals and clarify any questions, potential Interviews February 13, 2004 through March 2004 City Council decision on if they want to proceed with private management April 2004 through June 2004 July 1, 2004 Management Agreement negotiated and signed Management Agreement effective Section 1.5. Qualifications Qualifications will be reviewed and evaluated by a committee of the City which will make a recommendation to the City Manager and City Council. The City Council will make the award of the management contract and approve final terms, The City reserves the right to reject any or all firms, to waive any informality or defect in any submittal or to amend or supplement, in whole or in part, this RFP. The City further reserves the right to extend any and all schedules and to negotiate any terms and conditions in the Management Agreement The City will award the contract to the Firm they deem most appropriate, based solely on their judgment, without further discussion. The submitting firms will not be compensated for any expenses in the process of responding to this RFP. ---, . -- ARTICLE II QUALIFICATIONS, RESPONSIBILITIES, FORMAT AND DEADLINE Section 2.1. Qualifications Firms qualified to be considered for award: 1. Will have minimum of five years experience in the events facility general management and concession management field, 2, Will provide a complete and comprehensive Statement of Qualifications. 3, Will be able to cite specific success in the events facility management field, 4. Will provide a contract format for consideration regarding the type of agreement sought. 5. Will respond to questions with specific names, dates and dollars, The selected firm must become registered to do business in the State of Iowa in the areas necessary to perform the Management Agreement. Section 2.2. Responsibilities The firm awarded the contract will be expected to assume management of the facility on July 1, 2004. Such firm will be responsible for all of the obligations and duties set forth in this RFP. The firm awarded the contract will be expected to produce and act upon a plan to make the transition from the present management. This plan must be submitted to Gil Spence no later than two (2) weeks after the award of the contract Prior to submitting its qualifications, each firm shall make all investigations and examinations necessary to ascertain conditions and requirements affecting the operation of the Facility. Qualified firms will know how to proceed with investigations and examinations; therefore, the failure in this area will not relieve the successful firm from the obligation to comply, in every detail, with all provisions and requirements, Section 2.3. Format and Deadline Each envelope is to have a complete return address in the upper left-hand corner and the marking "Facility Management RFP" in the lower left hand corner. Eight (8) copies of submittal are to be provided. Submittals should be limited to no more than 30 pages, not including attachments. Firms considered to be finalists may be interviewed, Each firm interviewed may have no more than two representatives, Interviews should take no more than two hours each, Submittals are due by 5:00 p,m, February 2,2004, envelope, are to be delivered to the offices of: Gil D. Spence Leisure Services Manager 2200 Bunker Hill Road Dubuque IA 52001-3010 Complete submittals, sealed in one Submittals received after the deadline will remain sealed in the envelope and returned to the firm at the address on the exterior of the envelope, _._~---- --~~- "'-' ARTICLE III STATEMENT OF QUALIFICATIONS Section 3.1. Firm Backaround 1. Discuss your firm's management experience with multi-use events facilities, particularly similar facilities when citing examples, 2. Discuss your firm's management experience with concession management in multi- use events facilities, particularly similar facilities when citing examples. 3. Discuss your firm's management experience with multi-use events facilities owned by local government. Include information relative to the line of authority from the government entity to the on-site management as well as if these facilities operate at a surplus or a loss and why, 4. Discuss circumstances within the last five years where your firm was excused or terminated from a contract for facility management. 5, Provide the most recent balance sheet and financial information regarding the financial stability of the firm, Please indicate whether the financial information is to be kept confidential. 6, Discuss your firm's experience working with local government boardslcommissions and City Council. Section 3.2. General Manaaement 1. Describe notable improvements or innovations your firm has recently instituted at other facilities. Specifically in the area(s) of operating surplus/loss, utilization, maintenance, utility cost controls, promoter cultivation and relations, community relations and perception, 2, Describe your firm's approach to administrative and financial systems and procedures. Specifically monetary controls and system, personnel recruitment and retention, organizational structure and the division of responsibility. 3. Describe your firm's approach to facility maintenance, Include daily, periodic and scheduled maintenance. 4. Describe the form of staff organization, background and experience, training, advancement and compensation of personnel assigned to other facilities your firm manages, 5. Discuss your approach to developing a similar staffing plan for this facility, including your firm's commitment to retain current employees, 6. Describe any services that your firm provides and believes are useful and outstanding in the context of the overall management abilities of the firm. 7. Discuss your firm's experience and approach in working with groups and organizations such as: the convention and visitors bureau; athletic organization; local school events groups; local industry groups; service clubs; and cultural art organizations. 8. Describe your firm's approach to and examples of successfully attracting top name performers and performing groups, 9. Describe your firm's marketing plan for maintaining and enhancing the event activity level at the facilities, Include booking policies and specific initiatives your firm would undertake including the budgetary impact of such initiatives, 10, Describe your firm's ability to use technology in promotion of the facility and events, 11, Describe your firm's experience with theater management and working with theater groups, 12, Give examples of events, facilities your firm manages, has self-promoted. 13. Describe your firm's experience scheduling and managing hourly ice usage and working with ice user groups. Section 3.3. Concession and Food ManaQement 1. Describe your firm's experience with concession, food and beverage options. Specifically: pricing, surplus I loss, delivery approaches, vendors, operating procedures, quality and variety, 2. Describe your firm's experience with branded food vendors and a multi-use events facility where there are 100 to 150 event days per year. 3, Describe your firm's approach to the utilization of in-house concession facilities. Section 3.4. Facility Operation Notes and Restrictions 1, The Five Flags Center will not compete for the same type of events that can be held at the Grand River Center, unless the event comes through the Grand River Center. Those events include, but are not limited to: conferences/conventions, dinners/ banquets, meetings, receptions, and flat floor events. 2. All City of Dubuque usage will be with no rental fee charged, only staff and foodl beverage costs can be charged. Same applies to non-ticketed usage by the Dubuque Community School District Graduation ceremonies are the only events this would apply to, as of now, Events where tickets are sold, rental fees do apply, 3. All fees and charges must be approved by the City of Dubuque, 4. All scheduling and booking policies and practices must be approved by the City of Dubuque, Section 3.5. Contract ArranQements Describe the type of contractual arrangement your firm generally seeks for general management of a facility such as this one, Include a discussion of the compensation arrangement and commissions, if any, and the criteria used in determining such. Private management contract options include, but are not limited to: lease the entire operation and private management -,,~---""=- Section 3.6. Client References Provide comprehensive list of clients and convention and visitors bureaus in comparable markets including: name and location of facility name of contact with title, address and phone number brief description of services provided by your firm length and description of working relationship with local convention and visitors bureau Section 3.7. Attachments Submitting firms are encouraged to include attachments with their submittals, including but not limited to: sample report forms letters of reference brochures programming information ADMINISTRATION BUILDING MAINTENANCE ICE EVENTS CONCESSIONS TOTAL Percentage self-supporting LEISURE SERVICES DEPARTMENT CIVIC CENTER DIVISION EXPENSE/REVENUE SUMMARY Fiscal Year 2005 expense revenue tax asking expense revenue tax asking expense revenue tax asking expense revenue tax asking expense revenue tax asking expense revenue tax asking ACTUAL FY 2003 $ $ 158,793 2,302 156,491 $ $ 269,178 269,178 $ 173,072 138,626 34,446 $ $ 490,053 273,230 216,823 $ 171,718 142,796 28,922 $ $ 1,262,814 556,954 705,860 44.10% EXHIBIT 1, p. 1 of 8 10/24/2003 BUDGETED PROPOSED FY 2004 FY 2005 166,127 ~ 165,877 314,622 - 314,622 210,438 138,630 71,808 441,718 287,965 153,753 159,947 125,000 34,947 1,292,852 551 ,845 741,007 42.68% 176,991 ~ 176,741 280,952 - - 280,952 221,329 137,003 84,326 441,812 290,600 151,212 173,503 144,800 28,703 1,294,587 572,653 721,934 44.23% ro .<;..- '0 " N Q., I- m :c >< w 0 UJ I- W UJ ::> '" UJ 0: I I- ~ ill "0 :0 ~>- ~'" 3:5 '" ':" ~z ""'j:: <: 0: UJ ê; I- Z '" ¡: ~ "- '" 0 w> '" .~ ~u ..JI ::> uii'j ".' 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Wo ::i¡¡j;: Ž~ <[W~ O~ ~:~ ~~ -td '" ;::;:: ¡: '" '" 00i- O!- --0 -0 OO!- O!- 00 ::¡::g ,::,.:: 00 """ "'" uiui f'J'" row "" ÕÒ """ """ "I>- '" :ii ,~ " :;: 0- ,;: to ro " .:; è; ro ID " '" u; '" f'J '" " ~ J ~~ C D 0 ID U D U " '" " '" t; " ..J " r " " " ,;: u; ID I' .:; è; " . 0 0 :; U '" ¡:oj ;::; " ;¡; ~ ~ ~' a-. \1'¡ --.., " g oJ ::: I~~ ,:\:C-...<;¡; i\( ~ """ '" 0- O~ "t- "'i? ui ui :' :1 !- m >; ;¡ Z <[ ;;; " !;: ¡;; " Cd '" 0: '" " Z D !- " >: " !- Z W '" " " I>- ,;: '" f'J .:; .:; '" ID " '" " ~ ro c' "" " .:; .:; :;: '" rù " ('". u; ° " .:; .;; > W I: !- f'J ::: " " ;; w W :;: 0 Z D '" ~ u > CO " '" ;;: ~ ~ ..J --' "" :". ¡::: 0 LEISURE'SERVICES DEPARTMENT Civic Center Division Expense I Revenue History EXHIBIT1,p.7of8 FY 1994 FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL BUDGET Expense $957,655 $999,588 $986,970 $ 1,023,656 $ 1,041,138 $ 1,075,881 $ 1,063,595 $ 1,041,403 $ 1,122,447 $ 1,262,814 $ 1,292,852 Revenue $477,224 $597,593 $470,175 $ 548,630 $ 450,397 $ 467,498 $ 522,247 $ 496,942 $ 443,314 $ 556,956 $ 551,845 Tax Support $480,431 $401,995 $516,795 $ 475,026 $ 590,741 $ 608,383 $ 541,348 $ 544,461 $ 679,133 $ 705,858 $ 741,007 % self supportina 49,8% 59.8% 47.6% 53.6% 43,3% 43,5% 49,1% 45,5% 39,5% 44,0% 42,7% July 2, 2003 revised 10-8-03 EXHIBIT 1, p. 8 of 8 LEISURE SERVICES DEPARTMENT CIVIC CENTER DIVISION REVENUE FY 2001 FY 2002 FY 2003 FY 2004 ACTUAL ACTUAL ACTUAL BUDGET ADMINISTRATION Miscellaneous $ 7,249 $ 111 $ 2,303 $ 250 ICE Ice Skating Fees $ 10,625 $ 13,421 $ 11,172 $ 16,245 Ice Rental Fees $ 71,747 $ 77,408 $ 70,119 $ 76,060 Hockey Game Fees $ 58,173 $ 15,468 $ 38,844 $ 28,125 Rental, Ice Skates $ 2,358 $ 2,674 $ 4,113 $ 4,700 Ice Rental, Leased $ 15,619 $ 8,436 $ 14,367 $ 13,500 Miscellaneous $ 174 $ 12 $ 158,696 $ 117,407 $ 138,627 $ 138,630 EVENTS Catering $ 5,369 $ 1,528 $ - $ 5,000 Novelty Sales $ 10,260 $ 7,551 $ 5,072 $ 10,000 Events Revenue $ 197,233 $ 200,039 $ 259,075 $ 230,565 Invest. Earnings $ 600 $ 450 $ 582 $ 400 Advertising Displays $ 7.500 $ 5,500 $ 8,500 $ 7,500 Ticket Surcharge $ 34,500 $ 220,962 $ 215,068 $ 273,229 $ 287,965 CONCESSIONS Beer $ 34,117 $ 33,573 $ 45,517 $ 38,000 Food $ 62,797 $ 74,520 $ 95,325 $ 80,000 Liquor $ 934 $ 733 $ 661 $ 2,500 Catering $ 12,187 $ 1,903 $ 1,294 $ 4,500 $ 110,035 $ 110,729 $ 142,797 $ 125,000 TOTAL $ 496.942 $ 443,315 $ 556,956 $ 551,845 EXHIBIT 2, p, 1 of 2 CITY OF DUBUQUE FIVE FLAGS CENTER TOTAL FISCAL YEAR # OF EVENTS ATTENDANCE FY 2002 552 162,221 FY 2003 651 171,303 ._,-- ---.-".-. , . ._~ '---"-~-"-" EXHIBIT 2, p. 2 of2 CITY OF DUBUQUE FIVE FLAGS CENTER TYPES OF EVENTS FY 2002 FY 2003 FY 2004 ACTUAL ACTUAL BUDGETED Thunderbird hockey games 23 29 27 Public skating sessions 50 50 45 Contract ice hours 615 789 735 Theater performances / rehearsals / meetings 185 120 160 City meetings 75 78 80 Arena performances 41 48 50 Arena meetings / banquets / parties 2 3 0 Arena exhibition days 26 25 10 West Arena performances 5 9 15 West Arena exhibition days 4 4 4 Ballroom meetings / banquets 9 8 0 Ballroom exhibition days 4 8 3 Meeting room sessions 208 172 200 Self / co-promoted events 8 8 8 OTHER ITEMS OF NOTE Ice changeovers 20 13 14 Ice maintenance days 150 159 205 Regular ticket office service days 312 286 290 Events serviced by ticket office 160 103 125 DUBUQUE FIVE FLAGS CENTER ORGANIZATIONAL CHART I LEISURE SERVICES MANAGER I DIRECTOR I EXHIBIT 3 I ~I SECRETARY I In_~ I -----[----- r---- EVENT~--T~ TECHNICAL ~ORDINA-=:J L- DIRECTOR CONCESSIONS MANAGER OPERATIONS MANAGER ---_._--_._~ - :~~~~~R- . UTILITY WORKER <D .4- . 0 ~ l[ [: C c id .,;.~ - c::J :r: x UJ n <D 4- 0 N ~ .,;. - ;:; :r: x UJ . 1 ~ i~/ ~I!...!! °ò~ ^. ~ I ¡BBliS U!DV1 ~ I '61 51 wi ~I ill¡ I D C <D L « iBaliS isn ~Dl (f) ()) 0 L0- W .::: Lo- . i ~' 1M'!] I: II~§I I ill I! 1¡~1 h:;1 I~, II c~~1 ~t1J,111 0 . , 0 J ' . CD 4- 0 '"' ~ . .,;. - c::J :r: x UJ CD U 0 C ill E 0 L- iD.- <D 4- 0 .,;. ~ .,;.- - CD :r: x UJ I ~ t¡, 1m I' ~ Iv~ ~d , " ,",I ~ ~I- II I~.¡. ' If I~. i 12~ ~£ I §! ; I 0 c (J) '- <i VJ CD 0 LL ill > LL I' =1 0' 35: () ::J ill ---- I ,u I ..eeJ..S U!Df'; '" ~ I ~ J:: - '" '0,-,- 0 z ~tJ E 0 0 '" '00 0 t= ~ 0 ~ ~ ~ ~ ~ .' L QJ 0 CD 2:: ~) I I +ee~¡s ¡sn:>°l . . , . EXHIBIT 4, p. 5 of 6 F'ive Flags enter pper Pr'orl1enade Concession Loffice Gate D Gate '.' w -- E Gate .ru ~Q¡Sl ~ woMEN's =f - I Gale 0 0 J-----~ Ii ] r4 H-- OPEN ....lJ 1 ~ --Tï U "Þ ¡: d U OPEN 4---- ~ L ~ - °°~N~:- ~l---.JD --_r.--] ~I ~_/ .---~' -l- _CJi'pheum Room - Main Sheel J Majectic Room . , Gust Street CD 4- 0 CD ~ ~ .,;. ¡- CD ;':¿ UJ I¡=== ~ L 0 (\'1 ,V ¡ ~dl À, ~ -. .~ lJ. ~. ~II I ~ -- - -. II ~ F'V~ i ~'Ii , I ! Ii I .. j I L-, I i 1 ì j I ~ i I I ~ I 1 J ~ I i I ~ I ~ ~ I 071'~711 \----1/ @ !) @= I ! II . I I -, 1- II I - II ! II I I ,-------; I 1 '0.: I - I i f' i ! - - I' I~,. I ,I I~ I ¡ i I i ;:;: ! I' .:=-1 I I ~ CD, . ~~ ~ L, .--_._-~ ~._._._~._.- EXHIBIT 5, p. 1 of 3 Dubuque Five Flags Center Mission Statement We provide an economic stimulus and diverse life enriching experiences for the people of Dubuque and the tri-state area, in a safe and well-maintained facility and [with] support services for event hosts and their guests. OperatinQ Culture Statement We are a knowledgeable, skilled, and flexible team of service-oriented professionals who help create an enjoyable experience for users and guests of the Five Flags Center. Key Result Areas (KRAs) We will focus on the following key result areas to assure we achieve or mission while demonstrating the attributes of our desired operating culture. Physical Plant Management It is essential that we have a safe, well-maintained and accessible facility that provides a pleasant and functional environment for events. We believe: »- The condition and appearance of the building is a reflection of our staff and our city. »- Safety is everybody's responsibility. »- Changes in the facility must reflect changes in our role in the community. . Accommodate a variety of events. Respect historical significance. Critical Objectives: 1. Maintain compliance with all codes - Building, Fire, Safety, ADA, Health, OSHA, etc. 2. Facility maintenance process in place, including annual "spring cleaning." 3. Develop and maintain a preventative maintenance program. 4. Maintain a five-year capital-improvement program. Events Management Our internal processes must consistently result in an efficient and positive experience for our users from the point of first contact through final settlement. We Believe: »- Delivering on commitments builds organizational integrity. »- Event management is a seamless team driven process EXHIBIT 5, p, 2 of 3 » The process can always be improved. » Process improvement is a team responsibility » Team members are individually and collectively responsible for execution of the process, » Every interaction with a user is an opportunity to foster the relationship. » Open dialog leads to mutual understanding. Critical Objectives: 1, Develop and maintain a building policy manual. 2, Develop and maintain a comprehensive event process flow document. 3, Develop and maintain a User-friendly contract development/insurance process. 4. Develop and implement an "Event Evaluation" tool for users. 5. Develop and implement a "Post Event" documentation process. 6. Schedule and conduct pre and post season hockey team building session, Marketing and Public Relations Positive visibility among event planners and promoters along with a reputation for delivering value and service will assure we attract and retain a solid base of users. We believe: » Reputation is an early selection criterion for users. » Visibility and awareness are key components of marketing. » The image of The Five Flags Center is inseparable from and contributes to the image of the events we host » An active presence in the "events" industry helps build visibility and awareness. Critical Objectives: 1. Develop and maintain an "Event Industry" marketing strategy (IAAM). . Manager attends IAAM meetings/conference 2. Develop and maintain a "Facility Awareness" (in the industry) strategy. 3. Develop and maintain a list of local and regional media contacts. 4. Develop and implement an "Events Awareness" strategy. Customer Service It is incumbent upon all our staff to proactively manage the experiences of our guests. _._~--- -, ---_. .. EXHIBIT 5, p, 3 of 3 We believe: » Customer service is an attitude - a habit of thinking and behaving. » Customer service is measured in terms of perceptions. » Perceptions are derived from experiences, » Every interaction with a customer is an opportunity to create a positive perception. » Our success depends on user's success. Critical Objectives: 1. Develop and implement customer service training program for key employees. 2. Develop and implement a customer service feedback tool. Fiscal Responsibility We have an obligation to prudently balance our mission to serve the diverse needs of the community with the financial support from the citizens of Dubuque. We believe: » The citizen's expect and deserve value for their investment in The Five Flags Center. » Diverse life-enriching experiences are an investment in the community's quality of life. » Users and customers are willing to pay for value. » Value is determined by perceptions in the market place, Critical Objectives: 1. Meet all budget guidelines set by City Council. 2. Review and revise performance measures of our budget document 3. Calculate and track "economic impact" of events, 4. Review staffing levels for different types of functions. 5. Develop and conduct an annual review process to assess fees and charges. ---~~W"~W, . . CIVIC CENTER DIVISION PROGRAM REVIEW MARCH 2004 CfVfC CENTER DfVfS/ON PROGRAM REVIEW TABLE OF CONTENTS A. INTRODUCTION ......................,..........,........,............,....,..........,...,.."........ B, EXECUTIVE SUMMARY 1. Intent of Center and full time staffing level.........................,............ 2. Obstacles to the Center's operation ...,.....................................,......, 3. Capital improvement and equipment items to be considered for improved operation or reduced expense ........................".......... 4. Concession operation ...,..,..,................,.,.,..................,............."..... 5. Philosophy regarding risk taking in self-promotion activity ............... 6. Use during slow times ............................................"...."........."......, C. RECOMMENDATIONS .,...",.........,..,."........,..,..............,..,..,...,........"..".'. D, BACKGROUND MATERIAL 1, Summary of each activity; goal; staff assigned; procedures, processes and steps involved; and budget information ................... 2, Response to review questions ....... "..........................., ".................. 3. Mission statement ........,........,......".."................,.....,......,.,.......,...... A - 1 B-1 B-3 B-5 B-7 B - 21 B -23 C - 1 D - 1 D -12 D -19 "-'-".------ "..- . INTRODUCTION . . The program review of the Civic Center Division was completed with the review committee comprised of the following individuals: Gil Spence"""",.",."..".".".""",. Leisure Services Manager Paula Jo Wolfe ".....,.....""""""" Civic Center Division Manager Peggy Degnan"""."........"....."." Events Coordinator John Richardson ".."....".....,....... Acting Operations Supervisor Pauline Joyce...."...".......".....".., Administrative Services Manager Dawn Lang .,.."",..,...,.".........."... Budget Officer Cindy Steinhauser ...........""""".. Assistant City Manager Rich Russell.",..""....,."..".......,... Building Services Manager At the City Council goal-setting session in August 2003, the City Council asked that a study be done of the operation of the Five Flags Center to see what could be done to hold the line on, or reduce, the property tax support. All options were to be considered, including private management. The review process developed by the City Manager's office was used to guide the review. Committee members are to be commended for the time and effort put forth during this time consuming process. Their questions and suggestions were most helpful during the review, The study of private management of the Center will be done in a separate memorandum, A-1 ..._-~ .. ._....._-_...._~ EXECUTIVE SUMMARY INTENT OF CENTER AND FULL TIME STAFFING LEVEL The original intent of the building was "To be a multi-purpose building that offers something for all ages." In reading the Grand Opening supplement from the Telegraph Herald it is obvious this intent was to be accomplished by the Center being an arts center, convention center, ice arena, sports center, meeting place, entertainment center and a stimulus for development downtown. With the opening of the Grand River Center, the original intent has been modified somewhat Conferenceslconventions, meetings, banquets, and floor shows have moved to the Grand River Center. In 2002, Conventions, Sports and Leisure Intemational (CSL) was hired to analyze potential future users for the Five Flags Center. The Civic Center Advisory Commission and staff used that study when they developed the new Mission Statement, Operating Culture Statement, and Key Result Areas for the Center. This review was conducted keeping the original intent of the building and assuming that private management would operate the same as currently being done, Present full time staff includes: Paula Jo Wolfe......."......". Civic Center Manager Peggy Degnan ..""""""'" Events Coordinator vacant ......".,...,......,......... Operations Supervisor vacant ......".."...."......."". Secretary John Snider....................." Concessions Manager John Richardson ..."......." Building Supervisor Alvy Kennedy......"............ Utility Worker Robert Richardson ............ Utility Worker Daniel Holtkamp ."......."'" Technical Director The concession manager position was added in 1989 when the Center took over the concession operation as a result of no private operation expressing any interest Since the building was opened, six full time positions have been eliminated: one house manager one technical director one secretary one accounting person one patron services manager / marketing person one utility worker B-1 ---- -- '.- -- - - - -..--. ..._.~ . The following things are currently being outsourced: most performance sound equipment and setup performance stage lighting trash pickup some ticket sales are done through Ticket Master outlets . ticket printing freon related maintenance specialized or heavy maintenance duties linen for events off duty police audio visual equipment service B-2 OBSTACLES TO THE CENTER'S OPERATION . PARKING: There are several aspects to the parking issue that the Center must deal with: .¡" Perceived lack of parking space for individuals attending events at the Center. There is ample parking within three blocks of the Center in parking ramps but most people view that as too far or do not realize they can park there. .¡" Parking for promoters and event vehicles can limit the types of events the Center can attract An example would be a circus that needs to park vehicles close (next to the Center) to house their animals. This type of parking is very limited and the lack of it makes attracting this type of event very difficult. ,/ Meter parking and the resulting parking tickets cause public relations concerns with building users. Four hour meters rather than two hour meters around the block of the building would help address this, CONFLICT BETWEEN ICE AND NON-ICE EVENTS: This is a nice problem to have because it means the Center is busy with a variety of events and the demand for booking dates is strong. It does create a difficult situation for the center manager as she tries to meet the needs of all user groups. The ice making process begins the first of September and during this two-week process, no other events can be held in the arena, The ice sheet remains down until mid-March to mid-April depending on whether the Dubuque Thunderbirds make the playoffs and how far they advance, During this seven month period when the ice sheet is down, non-ice events are held on an insulated flooring put over the ice. Having non-ice events in the Center restricts the flexibility of the Dubuque Thunderbirds to schedule home games, Many non-ice events schedule their dates several years in advance causing those dates to be unavailable for the Thunderbirds. Long running non-ice events require the Thunderbirds to travel out of town for practice times, adding cost to their operation. Non-ice events in the Center also restrict the ice time available to other ice users including the Dubuque Youth Hockey Association, Over 30 hockey and public skating. The demand for ice time from all these groups has increased the last few years, B-3 ---- ~- ---..--- -- '-"'----'~~~"""""'- . Having the ice sheet in the Center also restricts the non-ice events in the building. Some events do not come to the Center because they do not want to be over the ice or they schedule for a time when ice is out Events scheduled over ice often complain that it is cold for those seated on the floor. The insulated floor that covers the ice is not very attractive but we now have carpet to layover the floor, if the user group wants to rent it. Approximately $36,000 is spent annually on labor costs to change over the arena from ice to non-ice event and back to ice, This is a very labor intense, time consuming process that is budgeted to be done fifteen times per year and is a non-reimbursable expense, When you consider that the prime time for both ice usage and non-ice events is the same months of the year, and the high scheduling demand from both groups, it is easy to see the difficulty the center manager has meeting all those requests. Staff is to be commended on its ability to work with all groups and equally meet everyone's scheduling needs. TRENDS OF TOURING INDUSTRY: When times are good for performers, they are not on tour because they do not need the money. Scheduling acts for the Center during this time is almost impossible, When times are not good for performers, they go on tour and scheduling them for Five Flags is much easier. SIZE OF THE CENTER LIMITS WHA T CAN BE OFFERED: With a maximum seating capacity of 5,200, we are limited in the types of acts we can schedule. Big name performers cost so much we would have to charge ticket prices two and three times "normal" price. Our building size limits us to secondary market shows where promoters have an opportunity to make a profit with reasonably priced tickets. . EXPANDED COMPETITION: Expanded competition is coming locally from the Grand Opera House, Dubuque County Fairgrounds, Diamond Jo, and colleges. As these venues schedule concerts and other events, they not only "take them away" from Five Flags, they compete for the entertainment dollars many people are willing to spend. Our market size limits the number of concerts the area can support, no matter which venue provides them, There is also expanded competition regionally as Cedar Rapids, the Quad Cities, Rockford, Madison, Milwaukee, and La Crosse, all have similar buildings now competing for that entertainment money. B-4 CAPITAL IMPROVEMENT AND EQUIPMENT ITEMS During the review process, capital improvement projects and equipment items that would improve or enhance operation of the Center were identified, This section identifies those items judged to be realistic: CAPITAL IMPROVEMENT PROJECTS: 1. Change bleacher seating (east bleachers) to fold-up seating, making the seats more comfortable and easier to sell, 2. Redecorating the Bijou room, 3, Convert section of warming kitchen into an additional concession stand. 4, Relocate ticket office ,/ remove from interior of the building ,/ streamline box office procedures ,/ makes ticket office usage available during events or when building is closed ./ eliminates temporary setups now required 5, Expand the energy management system to include the theater and locker rooms. 6. Close section 8 to create more storage space. 7. Expand ice refrigeration system and install dehumidification system to improve ice quality and expand the ice season, 8. Replace arena HVAC system. 9. Better ice insulation (covering). 10, Renovate concession stands and obtain point of purchase registers, 11, Improve ambiance of the promenade and entrances to the building. EQUIPMENT ITEMS: 1. Portable rigging system for the arena, 2. Masking (black curtains) to transform the arena into a theater to bring in shows that are too large to play in the theater. B-5 '_."-~'-"'-- 3, Point of purchase registers for concession stands. 4, Replace and upgrade arena and theater sound systems. 5. Expand computer system/terminals to increase operation efficiency and to ease the transfer of work orders and event information, 6. Video system for arena and promenade ,/ informational purposes for users and operating video of what is happening in sections of the building B-6 - - CONCESSION OPERA TION The first ten years the Center was open the concession operation was outsourced to a private individual. When that ten-year contract was up for renewal, no one responded to the request for proposals. At that time the Center hired a concession manager and took over the operation. For a number of years we were able to show a profit from the concession operation to offset tax support for the rest of the operation, In FY1997, the profit margin began to shrink and around FY1999, we began to use tax support for the concession operation. A four-year history of expense and revenue follows: FY2002 FY2003 FY2004 FY2005 ACTUAL ACTUAL BUDGETED PROPOSED Expense $ 144,358 $ 171,718 $ 159,947 $ 173,503 Revenue 110,728 142.796 125,000 144,800 Tax Support $ 33,630 $ 28,922 $ 34,947 $ 28,703 This change has been brought about by the following reasons: Reduction in the type of events that generated high beer sales. Events like the Buddy Holly Dance, Toughman Contest, and concerts aimed at persons over twenty-one years old are no longer held or the number of events reduced, People do not drink as much beer as in the past This is a good thing for people's health, but reduces our revenue. Expenses, mostly salaries and benefits, have increased sharply the last five years and revenue has not kept pace. Often times the concession operation is a service to the event where the profit margin is small or even provided at a loss. The following are examples: . The Dubuque Symphony Orchestra likes to have a bar of wine and soft drinks for intermission at their concerts, The staff time taken to set up this bar and to provide the service during the intermission results in little, if any, profit for the Center. . Over the years the Center has received complaints from the Dubuque Youth Hockey Association concerning the concession stand not being open enough during their B-7 - regular ice usage. The stand was not open all the time they were in the building because for much of the time little business was done and we lost money. A few years ago the decision was made to open the stand all the time ice is being used, This provides the needed service for the user group but results in little profIt for the Center. Attached is an Invitation to Bid that was developed if it is decided to seek bids. The review committee recommends this Invitation to Bid be sent out, if private management is not pursued, to test and see if anyone is interested, The committee believes that not only would the $28,703 tax support be saved, the private operation may pay to be able to provide the service. B-8 - - LEISURE SERVICES DEPARTMENT CITY OF DUBUQUE, IOWA INVITATION TO BID DATE CONCESSION OPERATION AT FIVE FLAGS CENTER I. INTRODUCTION The City of Dubuque, Iowa, is soliciting bids from qualified concessionaires to operate the concession operation at the Five Flags Center. II. BUILDING PROFILE The Five Flags Center is a multi-purpose building serving a variety of event types, In FY2003, 651 events were held at the Center with an estimated attendance of 171,300. Types of events would include concerts, hockey games (youth, high school and Dubuque Thunderbirds), basketball, traveling shows and others. For more information on events, contact Civic Center Manager, Paula Jo Wolfe, at (563) 589- 4254. III. SUBMISSION REQUIREMENTS The City of Dubuque reserves the right to reject any and all bids, to select the bid in best interest of the City, and to negotiate changes with any firm. The City of Dubuque is not liable for any cost incurred by any firms related to the submission of this bid or the execution of the agreement or contract. The City of Dubuque is an Equal Employment Opportunity Employer. Bid Submission Bid shall be delivered by 5:00 p.m., CDT on Friday, address below: , at the Gil D, Spence Leisure Services Manager 2200 Bunker Hill Road Dubuque, Iowa 52001-3010 B-9 .MU-- - . Five Flags concession operation page two The bid shall be sealed and shall be clearly labeled "Five Flags Concession Bid." It is anticipated that an agreement for services will be awarded on Each firm assumes full responsibility for delivery and deposit of the completed bid package on or before the deadline. The City of Dubuque is not responsible for any loss or delay with respect to delivery of the bids. Further information may be obtained from Leisure Services Manager Gil Spence by telephone at (563) 589-4263 or by writing to 2200 Bunker Hill Road, Dubuque, Iowa 52001-3010. IV. INFORMATION TO BE INCLUDED To simplify the review process and to obtain the maximum degree of comparability, the bid shall include the following information and shall be organized in the manner specified below. Letter 2f Transmittal Provide a letter of transmittal briefly outlining the firm's understanding of the work, general information regarding the firm and individuals to be involved, and the name, address, telephone number and fax number for the contact person for the bid. Profile of Firm The bid shall include general information about the firm, the firm's area of expertise, and the firm's official name, address, and principal officers. Qualifications The bid shall include the name of the anticipated concession manager, his or her qualifications and experience and the names, qualifications and experience of other key personnel who would be associated with the operation. V. SCOPE OF SERVICES The agreement is described in detail in the proposed Concession Agreement The extent of the agreement includes, but is not limited to: B -10 - - Five Flags concession operation page three Rights to sell food and beverage items from the concession stands located in the Center, . The agreement shall be for a five-year period, through . Grantee shall be responsible for providing a quality concession service during all events as designed by the civic center manager. . Grantee shall furnish all equipment, machines, and supplies to operate the concession stands. Grantee shall maintain liability insurance, product liability insurance, and worker's compensation insurance as designated in the agreement Bidder shall specify a fee and a percentage of gross sales. The larger of the two figures will be paid to the City in payments as designated by the agreement. . All bids must be made on blanks furnished by the City. B - 11 . ~._-~- - . CONCESSION AGREEMENT LEISURE SERVICES DEPARTMENT CITY OF DUBUQUE FIVE FLAGS CENTER PROPOSAL BASE FEE OF DOLLARS OR OF GROSS SALES, WHICHEVER AMOUNT IS GREATER. ALTERNATE: SIGNATURE FIRM ADDRESS TELEPHONE PERCENT B-12 CONCESSION AGREEMENT FOR FIVE FLAGS CENTER This agreement, made and entered into this - day of , 2004, by and between the City of Dubuque, Iowa, acting through the Civic Center Advisory Commission, hereinafter called the "City", whose address for the purpose of this lease is 405 Main Street, Post Office Box 628, Dubuque, Iowa 52004-0628, and , hereinafter called the "Concessionaire", whose address for the purpose of this agreement is WITNESSETH: WHEREAS, the City is engaged in the operation and maintenance of the public facility called the Five Flags Center and the City desires to engage a competent and qualified concessionaire to operate and manage the concession stand at the facility; and WHEREAS, The Concessionaire is desirous of procuring from the City the privilege to operate and manage the concession stand and is qualified to provide the requisite services associated therewith; and WHEREAS, the public interest and welfare will be served and the Five Flags Center materially enhanced by granting such privilege to a reputable party who wìll provide certain services to the public patronizing the complex, NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements hereinafter set forth, it is agreed by and between the parties as follows: 1, LENGTH OF AGREEMENT, This agreement for the privilege and obligation to operate the concession rights at the Five Flags Center shall be for the five year period from July 1, 2004 through June 30, 2009, 2. PAYMENTS, Concessionaire shall pay to the City, through the Five Flags Center, the sum of $- per year for each year that this agreement is in effect Said fee shall be paid in monthly payments due by the 15th of the month, beginning with the second month of operation. 3, FINANCIAL STATEMENTS. Concessionaire shall not later than the 15th of each month provide the City with a financial statement verifying all receipts from the operation of its business. In addition, Concessionaire shall make available to the City all its records regarding the operation of the business when so requested by the City. B - 13 ~~""'- . , --.--" , ---~~--~'"~,~-----'" . . 4. LICENSES. Concessionaire shall obtain all licenses, permits, and other documents necessary to operate a food and beverage business, including beer sales, at its sole expense, as required by the laws of the City of Dubuque, State of Iowa, and the United States. 5, TERMINATION, This agreement may be terminated by the Leisure Services Manager upon 24-hours written notice if it is deemed in the best interest of the City and by Concessionaire upon seven (7) days' written notice to the Leisure Services Manager. Upon termination of this agreement, the Concessionaire shall remove all its property and personnel from the Concession stand. It is expressly understood and agreed that this agreement is not a lease or a conveyance of realty, but merely a granting of the privilege to provide certain services for the benefit and convenience of the public, The rights and obligation of the parties under this agreement shall end with the effective day of the termination of this agreement except that the Concessionaire shall be responsible for any damages or losses attributable to his/her acts or those of his/her employees while operating the concession stand. 6, ASSIGNMENT OF AGREEMENT. Concessionaire shall not assign, sell, or in any way transfer the business or this agreement without the prior written consent of the Leisure Services Manager. 7, PRODUCT SALES AND HOURS OF OPERATION, It is understood and agreed that the Concessionaire shall handle a general line of beer, soft drinks, food, et cetera, such as are commonly found available at such places. Concessionaire shall obey all laws and regulations of the City of Dubuque and State of Iowa pertaining to the sales of said products, including dram shop insurance, The Concessionaire shall file a price list prior to July 1 st for such items sold at the concession stand, with the Leisure Services Manager. These prices shall be in effect until the Leisure Services Manager is notified in writing that a price change is requested, In the event that the Concessionaire shall not submit a price list to the Leisure Services Manager prior to July 1 st, the prices of the previous season shall prevail until a new price list is approved. The concession stand shall be open and available to the public during the hours and events as determined by the Civic Center Manager, primarily to coincide with the events scheduled. Closing shall not be later than fifteen minutes after the event is concluded. The Civic Center Manager reserves the right to prohibit beer sales during events requesting no beer sales. The Concessionaire shall enforce the "no carry-in" rule. 8. MACHINERY AND EQUIPMENT. Concessionaire shall provide and maintain all machines and equipment necessary to operate its business at its sole expense. Structural changes to the building pertaining to equipment must be approved in writing by the Civic Center Manager and done at Concessionaire's expense, When said equipment is removed, the building shall be restored to its original condition, at Concessionaire's expense. Storage shall be limited to the designated areas. B -14 9. ELECTRICITY AND WATER. City shall provide electricity and water to concession area for use by Concessionaire at City's sole expense. 10. CONCESSION STAND MAINTENANCE. Concessionaire shall be responsible for all damage done by employees of the Concessionaire, Concessionaire shall not alter the interior or exterior of the concession stands without prior written consent of the Civic Center Manager. 11. SIGN(S). Concessionaire, at his/her sole expense and with approval from the Civic Center Manager, may erect suitable signs to inform the public of the products available for sale, and the prices. No signs will be hung on the outside of the concession stands. 12, HOUSEKEEPING, Concessionaire shall be solely responsible for maintaining the concession business area and keeping the same in a clean and wholesome condition at all times. Concessionaire shall keep all garbage and refuse generated by his/her business neatly contained, and shall place all refuse in the dumpsters provided by the Center. 13. PERSONNELIN CONCESSION AREA. Only employees of the Concessionaire or authorized personnel shall be permitted in the concession portion of the building. 14, REMOVAL OR ENCUMBRANCE OF CITY PROPERTY. Concessionaire shall not remove or encumber any property or equipment of City located in the concession building; nor shall Concessionaire dispose of or disburse any funds owed to City. 15. RIGHT OF ENTRY. concession area at any time. City shall have the right to enter and examine the 16. INSURANCE. Concessionaire shall provide such insurance as required by the attached insurance schedule. 17, INDEMNIFICATION, The Concessionaire agrees to defend, indemnify and hold harmless the City, its officers, boards, commissions, agents, and employees from and against all claims by any person whatsoever occasioned by the operation of Concessionaire under this Agreement 18, LIABILITY FOR CONCESSIONAIRE'S EQUIPMENT, SUPPLIES, AND OTHER PROPERTY. City shall not be responsible in any way for lost, stolen, or damaged equipment, supplies, or other property of Concessionaire. The Concessionaire shall be solely responsible for all of its equipment and supplies. B - 15 -- - -~ - -- ~ '--.-.--- ~.- -. ----"'w_v 19. EMPLOYEES, Concessionaire shall supply at its sole expense a sufficient number of employees to adequately serve the public during the hours of operation. Concessionaire's employees shall at all times reflect personal cleanliness, Unkempt and unclean employees will not be tolerated. Employees shall wear distinctive shirts, jackets, or smock and cap whenever working. 20. PERFORMANCE BOND. Concessionaire shall on or before July 1, 2004, execute to the City a bond with good and sufficient security, said bond to be approved by City, in the sum of Fifty Thousand Dollars ($50,000.00) conditioned upon the faithful performance and discharge of the obligations imposed by this agreement from the date thereof and said bond shall remain in force and effect during the life of the agreement. Concessionaire shall pay all premiums chargeable for said bond and shall keep the same in force and effect at all times throughout the term of this agreement and until removal of all its property from the concession area. Said performance bond shall contain a provision that it shall not be terminated or otherwise allowed to expire until thirty (30) days' written notice to that effect is given to the City and the Concessionaire herein. Said bond shall be in a form satisfactory to the City; and a duplicate copy, along with written evidence of payment of the required premium, shall be filed with the City during the term of this agreement 21, TOTAL OR PARTIAL DESTRUCTION OF CONCESSION BUILDING. In the event of fire or other disaster causing partial or total destruction of the concession stands, the City at its option may proceed with rebuilding or repair of the building. During the period of rebuilding, Concessionaire shall have the option of continuing to operate its business from a temporary or mobile concession stand. FOR THE CITY OF DUBUQUE FOR THE CONCESSIONAIRE address phone B -16 INSURANCE SCHEDULE A INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE CITY OF DUBUQUE 1. All policies of insurance required hereunder shall be with an insurer authorized to do business in Iowa. All insurers shall have a rating of A of better in the current A.M. Best Rating Guide, 2. All policies of insurance shall be endorsed to provide a thirty (30) day advance notice of cancellation to the City of Dubuque if cancellation is prior to the expiration date, This endorsement supersedes the standard cancellation statement on the Certificate of Insurance, 3. shall furnish a Certificate of Insurance to the City of Dubuque, Iowa for the coverage required in Paragraph 6 below. Such certificates shall include copies of the following policy endorsements: a) Thirty day notice of cancellation to the City of Dubuque, b) Commercial General Liability policy is primary and non-contributing, c) Commercial General Liability additional insured endorsement. d) Governmental Immunity Endorsements, e) Waiver of recovery under workers compensation. 4. Each certificate shall be submitted to the contracting department of the City of Dubuque, 5, Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach ofthis agreement 6. shall be required to carry the following minimum coverage/limits or greater if required by law or other legal agreement: a) COMMERCIAL GENERAL LIABILITY General Aggregate Limit Products-Completed Operations Aggregate Limit Personal and Advertising Injury Limit Each Occurrence Limit Fire Damage Limit (anyone occurrence) Medical Payments $2,000,000 $1,000,000 $1,000,000 $1,000,000 $ 50,000 $ 5,000 This coverage shall be written on an occurrence, not claims made, form per location. All deviations or exclusions from the standard ISO commercial general liability form CG 0001 or Businessowners form BP 0002 shall be clearly identified. B -17 . . Governmental Immunity Endorsement identical or equivalent to form attached. An additional insured endorsement identical or equivalent to ISO Form CG 2026 or CG 2011 and include as additional insureds: "The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees, and volunteers." b) WORKERS' COMPENSATION & EMPLOYERS LIABILITY Statutory for Coverage A Employers Liability: $100,000 each accident $100,000 each employee-disease $500,000 policy limit-disease Policy shall include an endorsement waiving right of recovery against City of Dubuque, c) UMBRELLA/EXCESS LIABILITY LIQUOR OR DRAM SHOP LIABILITY Coverage to be determined on a case-by-case basis by Finance Director. B - 18 POLICY NUMBER COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name of Person Or Organization: The City of Dubuque, inciuding all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees, and volunteers. (If no entry app",ars above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement) WHO IS AN INSURED (Section Ii) is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out of your operations or premises owned by or rented to you. CopvriQht Insurance Services Office. Inc. 1994 CG20261185 B - 19 .,---- CITY OF DUBUQUE, IOWA GOVERNMENTAL IMMUNITIES ENDORSEMENT 1. Nonwaiver of Governmentallmmunitv. The insurance carrier expressly agrees and states that the purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time. 2. Claims Coveraqe, The insurance carrier further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government Immunity, The City of Dubuque, Iowa shall be responsible for asserting any defense of govemmental immunity, and may do so at any time and shall do so upon the timely written request of the insurance carrier. 4. Non-Denial of Coveraqe. The insurance carrier shall not deny coverage under this policy and the insurance carrier shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa. No Other Chanqe in Policy. The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. B - 20 PHILOSOPHY REGARDING SELF-PROMOTION In order to boost the number of events, attendance and revenue, certain facilities go beyond the normal practice of renting to outside promoters, and engage in promotion and co-promotion of events. Self-promotion means that the facility assumes the role of the promoter, undertaking all costs and risks normally taken by promoters who might engage an attraction and rent the facility, Co-promotion means that the facility enters into an agreement with a promoter under which the facility and the promoter agree to share costs, risks, profits and losses, under some negotiated formula, Normally, promotion and co-promotion involves the assumption of certain risk on the part of the facility, Policies vary from facility to facility, with many reporting either an unwillingness to take risks or a prohibition from doing so. This is often the case with certain publicly owned facilities where managers are prohibited from taking promotional risks, which might result in the loss of public funds. At Five Flags, the self-promotion activity was established to allow the center manager some flexibility to co-promote or self-promote events in the Center. A conservative approach has always been taken when making these decisions and expending these funds, The main focus for these funds has been to promote performances in the theater. These performances are usually put on by local arts groups that need some assistance to reduce the financial risk, The relationships that have been developed have become successful for both the Center and the arts groups, Over the last few years there has been some talk that a more aggressive approach should be taken to self-promote events that could generate greater funds for the Center. A Celebration on Ice was self-promoted this year and ended up losing some money, so there are risks. The money that was lost should be made up in other events that were held, so the City should not lose money in the self-promotion activity at the end of the year. For the Center to take a more aggressive approach to self-promotion, the City Council would need to authorize the Civic Center Manager to risk the loss of public funds to promote events. Most times when an agency representing an artist calls, the Civic Center Manager needs to move quickly to estimate potential costs and revenue and decide to contract the artist Everyone would need to recognize the risks and be willing to take them, B - 21 Another aspect that needs to be considered as this topic is discussed is the staff time involved to self-promote events, especially major events. With the staff reductions the Center has experienced over the years, there is not a lot of staff time that can be taken to do much more self-promotion events. If a more aggressive approach is taken we would need to evaluate the present staffing level to determine if positions should be changed to allow the center manager to have assistance in this effort, In 2002 the City hired Conventions, Sports and Leisure International (CSL) to conduct an analysis of potential future uses for the Five Flags Center. That study recognized that we host a modest level of promoted spectator events and suggests the primary event focus in future years should include: secondary market shows agent booked events musical productions theater productions specialty events (illusion art, comedy, et cetera) motor sports The study recognizes that the Center would need to co-promote these events to attract a great number of them to Dubuque. Expansion of art programming and the ice season were also mentioned. The CSL Study also states that scheduling for the Center should not result in a loss of popular music and entertainment events due to activities such as open skating, practices, and other low attendee events. The review committee suggests that a discussion be held with the City Manager, City Council, and Center staff to determine if the present approach should be maintained or if a more aggressive approach should be taken. B -22 USE DURING SLOW TIMES The summer months are often considered the slow months of usage at all buildings. This time period is used for maintenance projects with self-promoted and "special deal" events scheduled around the maintenance. This is also a time period when outdoor venues are offering shows and activities. It seems counterproductive to compete with entertainment events like the Diamond Jo, Catfish Festival, Dubuque County Fair, downtown Jazz Festivals and other local events. Some creative events in other markets we may want to consider include: . expand ice season basketball tournaments . art programming and events . volleyball tournaments . art exhibits . Allow five city non-profit groups to rent the facility for only $1.00 plus labor and equipment costs Center staff will continue to look for ways to expand building usage while considering the issues stated above, B -23 --- . . RECOMMENDATIONS The following is a series of recommendations the review committee would like to make, if management is not privatized: . The capital improvement and equipment items suggested in section three of Executive Summary be further investigated and incorporated into the budget process as funding allows, Invitation to Bid be sent out to outsource the concession operation. Tax asking reduction from this item is estimated at $40,000, If the current Building Supervisor is promoted to the vacant Operations Supervisor position, the building supervisor position be down graded to maintenance worker. Tax asking savings would be $10,118. Naming rights for the Center be sold, To do this, a consultant would be hired and paid a percentage of the naming rights revenue because staff does not have the time and expertise to do this, Since this is such an unknown, no estimate will be made as to how much tax asking reduction there could be. . A more aggressive approach be taken to co-promote and self-promote events. This assumes some financial risk, but could yield financial reward. Further study maximizing use of the building during slow months. . To improve the bottom line, strict enforcement of the no carry-in food and drink policy will be done. Center staff will continue to look for ways to expand building usage while considering the issues stated above. C-1 BACKGROUND MATERIAL CIVIC CENTER DIVISION SUMMARY PER FY 2005 BUDGET ADMINISTRATION ACTIVITY Goal: To provide the community with a wide variety of both spectator and participation events through professional leadership and administration of the Civic Center Operation. Staff assigned: LEISURE SERVICES MANAGER CIVIC CENTER MANAGER SECRETARY no seasonal or part-time employees Gil Spence Paula Jo Wolfe vacant .15 FTE 1.00 FTE 1.00 FTE Procedures, Processes and Steps Involved: . Supervising, monitoring and analyzing the day-to-day operation ,/ presence of events ,/ hiring and training staff ,/ conducting staff meetings to plan event setup, operation and take-down . Maintaining personal contact with presenters, promoters and agents on national, regional and local levels . Negotiating contracts for all events held at the Center . Planning for the future of the Center ,/ staying abreast of industry trends . Preparing an annual operating budget . Keeping the City Council, City Manager, Civic Center Commission, and Leisure Services Manager informed of Center activities D - 1 ._--_.~.~".~ . Providing a high profile, positive image of the Civic Center ,/ personal appearances of staff ,/ speaking engagements ,/ community involvement ,/ professional marketing efforts Responding to citizens complaints/questions Civic Center summary page two . Conducting all office operations and procedures in an efficient and professional manner Budget Information: EXPENSES: full time employees social security I.P.E.R.S. health insurance worker's compensation life insurance office supplies postage and shipping OlE maintenance contracts DP equipment maintenance contracts copying legal notices subscriptions dues travel, city telephone property insurance general liability misc, operating supplies TOTAL ACTIVITY EXPENSE REVENUE: miscellaneous revenue D-2 $ 112,566 8,611 6,473 23,479 243 ~ 900 540 801 5,304 150 350 375 400 2,400 13,029 95 750 300 $ 151,597 $ $ 25.394 176,991 250 Civic Center summary page three CONCESSIONS ACTIVITY Goal: To provide a wide variety of food and drink to Civic Center patrons that complements and enhances the various activities taking place in the facility, Staff assigned: CONCESSIONS MANAGER CONCESSIONS WORKER BARTENDER CONCESSION ASSISTANT (45) (31) ( 1) John Snider part-time part-time part-time 1.00 FTE .99 FTE .35 FTE .44 FTE Procedures, Processes and Steps Involved: Provide food and drink to patrons ,/ operate concession stands during events ,/ operate beverage bars for events that want them . Maintaining a pleasant atmosphere in stands ,/ hire and train employees ,/ keeping stands clean, with a good appearance ,/ requiring employees to be neat and clean ,/ greeting patrons in a friendly and efficient manner ,/ meeting or exceeding all health requirements . Generate as much profit as possible ,/ schedule appropriate number of employees for each event ,¡" select menu items and pricing ,/ maintain accurate accounting and historical records ,/ research and order appropriate products NOTES ,/ quality of products, image and service to the users have a higher priority than making a profit D - 3 - --, -' - -~-~--,--,----, . Civic Center summary page four ,/ the Center does not have the facilities to cater meals for functions Budget Information: EXPENSES: full time employees $ 47,536 part-time employees 29,482 social security 5,892 I.P.E.R.S. 3,698 health insurance 10,920 worker's compensation 787 life insurance ~ $ 98,410 office supplies 100 uniform purchase 300 legal notices 150 dram shop insurance 5,702 mileage 75 general liability 531 mach.lequipment maintenance 800 operating supplies 350 food products 37,000 beer products 16,000 liquor products 1,000 license fees 2,500 miscellaneous services 3,000 67,433 equipment items 7.660 TOTAL ACTIVITY EXPENSE $ 173,503 REVENUE: beer sales $ 46,000 food sales 96,000 liquor sales 1,500 catering 1.300 TOTAL ACTIVITY REVENUE $ 144,800 D-4 . . Civic Center summary page five BUILDING MAINTENANCE ACTIVITY Goal: To provide safe, sanitary and event-ready facilities that encourage patron attendance by maintaining the building and major equipment in a safe, pleasing and functional condition. Staff assigned: OPERATIONS SUPERVISOR BUILDING SUPERVISOR UTILITY WORKER CREW LEADER LABORER II, housekeeping ( 1) ( 6) vacant John Richardson Alvy Kennedy part-time part-time 1.00 FTE 1.00 FTE .50 FTE .10 FTE ,17 FTE Procedures, Processes and Steps Involved: . Provide monitoring and operation of all electrical, mechanical and structural elements of the facility plus maintenance of all rolling stock ,/ development and implementation of a preventative maintenance program ,/ researching and recommending cost efficient means to reduce utility, equipment and labor costs . Reducing loss time accidents by instituting and implementing a loss prevention safety program . Providing general cleaning of the building, including the once-a-year "spring cleaning" of all common areas Budget Information: EXPENSES: full time employees part-time employees social security I.P.E.RS, health insurance worker's compensation life insurance safety equipment $ 117,235 4,983 9,350 6,938 27,301 1,288 234 -1QQ $ 167,429 D - 5 ~--_.~_... . . . Civic Center summary page six uniform allowance postage electricity gas telephone property maintenance custodial services HVAC maintenance elevator maintenance property insurance boiler insurance general liability operating supplies mach.lequipment maintenance miscellaneous services 100 100 39,845 9,641 543 10,000 350 12,000 315 12,714 8,454 869 6,076 4,200 416 equipment items TOTAL ACTIVITY EXPENSE $ 105,623 7900 280,952 0 TOTAL ACTIVITY REVENUE D-6 ICE ACTIVITY . . Civic Center summary page seven Goal: To provide the community with a high quality indoor ice rink for approximately 160 days per year, covering a variety of ice activities, while maintaining non-ice activities as a revenue producer. Staff assigned: EVENTS COORDINATOR UTILITY WORKER CASHIERS ( 4) CREW LEADER ( 2) LABORER II, stage ( 3) LABORER II, housekeeping (28) USHER (11) HOUSE MANAGER ( 7) ZAMBONI DRIVER ( 5) Peggy Degnan Alvy Kennedy part-time part-time part-time part-time part-time part-time part-time .25 FTE .50 FTE ,12FTE ,24 FTE .06 FTE 1.43 FTE .41 FTE .17 FTE .58 FTE Procedures, Processes and Steps Involved: . Providing a high quality indoor ice sheet for approximately 140 days ,/ the ice making process takes ten working days ,/ the ice melting process takes two days ,/ twenty-four Minnesota Junior Hockey League games are budgeted ,/ seven hundred and thirty-five hours of contracted ice usage are expected ,/ forty-five public skating sessions are expected . Description of part-time positions ,/ the laborer grade positions would include zamboni operators, T-shirt security, change-over workers, cleaning crew and skate guards ,/ cashiers work public skating and for Saints' games ,/ ushers work Thunderbird games ,/ people that work skate rental are budgeted in the concessions activity D-7 .- ,-~.--.,_._",-~~~---",-<. . Civic Center review page eight Budget Information: EXPENSES: full time employees $ 30,793 part-time employees 44,360 part-time reimbursable 9,485 overtime 629 social security 6,523 I.P.E.R.S. 3,760 health insurance 8,190 worker's compensation 1,547 life insurance ~ $ 105,349 uniform allowance 75 sales tax 5,821 postage and shipping 50 electricity 55,180 gas 27,405 HVAC maintenance 1,500 general liability 574 operating supplies 8,000 license fees 600 mach.lequipment maintenance 5,000 104,205 equipment 11,775 TOTAL ACTIVITY EXPENSE $ 221,329 REVENUE: ice skating fees $ 16,639 ice rental fees 74,715 hockey game fees 28,125 rental, ice skates 4,024 ice rental, leased 13,500 TOTAL ACTIVITY REVENUE $ 137,003 D -8 EVENTS ACTIVITY . . Civic Center review page nine Goal: To provide planning and execution of all Civic Center events through professional consultation, ticket handling and sales, professional technical assistance, building setup and cleanup, event security, ushering and promotion to maximize patron comfort and enjoyment while maintaining a positive public image, Staff assigned: EVENTS COORDINATOR TECHNICAL DIRECTOR UTILITY WORKER CASHIERS ( 7) CREW LEADER ( 8) LABORER II, housekeeping (28) LABORER I, housekeeping (66) HOUSE MANAGER ( 5) USHER I (35) Peggy Degnan Daniel Holtkamp Robert Richardson part-time part-time part-time part-time part-time part-time .75 FTE 1,00 FTE 1,00 FTE .90 FTE .82 FTE 2.58 FTE .74 FTE .44 FTE 1.19 FTE Procedures, Processes and Steps Involved: Providing professional planning, scheduling and coordination of events ,/ give professional advice in event planning ,/ present event cost estimates ,/ send out work orders to required crews ,/ prepare billings ,/ monitor the preparation for, and execution of events ,/ coordinate all event-related services ,/ hire, train and supervise the part-time usher and security staff Provide professional technical assistance and execution for events ,/ maintain event-related equipment ,/ hire, train and schedule high quality technical and stage crews ,/ provide accurate technical advice on event setup and technical requirements and costs ._- D-9 . . Civic Center review page ten ,/ provide lighting designs, sound reinforcement and electrical hookups for groups . Maximize patron comfort and enjoyment ,/ monitor lights, HVAC and other mechanical equipment during events ,/ schedule and supervise event setup and cleanup crews ,/ maintain building appearance during events . Provide accurate, consistent and complete ticket service for all events ,/ open ticket office six days a week, 12:00 noon to 5:30 p,m. ,/ provide ticket office service for door sales prior to events ,/ maintain ticket master outlets to insure availability to people in the surrounding areas ,/ continually evaluate ticket office policies, practices, personnel and procedures Budgetlnfonnavon: EXPENSES: full time employees part-time employees part-time reimbursable overtime social security I. P.E. R.S. health insurance worker's compensation life insurance $130,332 46,836 71,655 1,647 19,161 11,779 30,031 2,578 -.W. 850 300 1,500 0 2,500 8,000 50 300 400 300 8,503 $ 314,280 office supplies uniform purchase postage and shipping OlE maintenance contracts printing promotion dues transportation travel, city lodging electricity D -10 REVENUE: . . Civic Center review page eleven gas refuse telephone general liability hospitality talent fees operating supplies mach.lequip, maintenance payments to other agencies software license expense catering services mach.lequipment rental miscellaneous services financial service fees 6,245 3,800 1,888 2,445 300 30,000 13,500 3,000 236 1,900 1,500 1,500 21,000 750 equipment TOTAL ACTIVITY EXPENSE advertising displays novelty sales event revenue investment earnings ticket surcharge TOTAL ACTIVITY REVENUE $ 7,500 6,500 241,700 400 34,500 TOTAL DIVISION EXPENSE TOTAL DIVISION REVENUE D-11 -.._~._, --~"_. $ 110,367 17 165 441,812 $ 290,600 $ 1,294,587 572.653 $ 721,934 . CIVIC CENTER REVIEW COMMITTEE STAFF RESPONSE TO QUESTIONS B, Division should be asked to identify a list of activities it would perform if resources were available, and why it would perform them. . MASKING (BLACK CURTAINS) TO TRANSFORM THE ARENA INTO A THEATER, $25,000 storage okay ..¡ bring in shows that are too large to play in the theater (Broadway type shows) . MARKETING OF THE BUILDING (NOT EVENTS)/IN-HOUSE PROMOTION, NEW LOGO FOR CENTER . CHANGE BLEACHER SEATING TO FOLD-UP SEATING * Positives ..¡ more comfortable seating ..¡ improved appearance ..¡ the two items above make seats easier to sell ..¡ enhance the theater type atmosphere referred to above Negatives ..¡ reduce seating . RELOCATE TICKET OFFICE * ..¡ remove from interior of the building ..¡ streamline box office procedures ..¡ makes the office useable during events ..¡ eliminates temporary setups now required . PORTABLE RIGGING SYSTEM FOR ARENA . THEATER LIGHTING SYSTEM AND RIGGING FOR ARENA, ($300,000) . CONVERT SECTION OF WARMING KITCHEN INTO AN ADDITIONAL CONCESSION STAND . CLOSE SECTION 8 TO CREATE MORE STORAGE SPACE OR MEETING ROOM SPACE . ALLOW MORE RISK TAKING IN SELF-PROMOTING EVENTS D -12 . . LARGE VIDEO SCREEN FOR ARENA (RENT) Ý need price . COMPUTERIZED TIME CARD SYSTEM . REPLACE ICE RINK REFRIGERATION SYSTEM / COMPRESSORS / BUILDING MODIFICATIONS TO EXPAND THE ICE SEASON AND TO IMPROVE PRESENT ICE MAKING AND ICE QUALITY * . FIGURE SKATING PROGRAM . EXPAND ENERGY MANAGEMENT SYSTEM TO INCLUDE THEATER AND LOCKER ROOMS . CREATE MORE STORAGE SPACE . REPLACE HVAC SYSTEM * . BETTER ICE INSULATION (COVERING)* . LONG RUNNING THEATER SUMMER SHOW (SELF PROMOTION) . VIDEO SYSTEM FOR ARENA AND PROMENADE* Ý informational purposes for users and operating video of what is happening in sections of the building . LIGHTED SIGNAGE ON.OUTSIDE OF BUILDING . MARQUEE FOR THEATER . POINT OF PURCHASE REGISTERS FOR CONCESSION STANDS ($8,000 each) . RENOVATE CONCESSION STANDS * C. The division should be asked what other activities are petformed, or in what different manners they are petformed in other cities. . WE DO NOT CHARGE USERS FOR ITEMS OTHER BUILDINGS DO Ý event cleanup Ý maintenance during events Ý AV, equipment Ý electricity used during events Ý trash D -13 ..,- --- ---- . . WE DO NOT HAVE OUR OWN PARKING . WE DO NOT HAVE A GRILL IN THE CONCESSION STANDS . WE DO NOT HAVE A MARKETING PERSON . OTHERS USE UNION LABOR FOR TECHNICAL SETUP IV. 1, Are there questions and obstacles unique to this activity? . ICE . TRENDS OF TOURING INDUSTRY (CONCERTS) . MORE ADEQUATE SIGNAGE FOR RAMPS . SIZE OF CENTER LIMITS WHAT CAN BE OFFERED . SIZE OF CONCESSION STANDS . USERS BRING IN THEIR OWN FOOD / DRINK . LACK OF STORAGE SPACE . PHYSICAL APPEARANCE OF THE BUILDING . WEIGHT RESTRICTIONS IN ARENA TO "HANG" EQUIPMENT NEEDED FOR SOME SHOWS . OVERHEAD DOOR ON 5TH STREET IS TOO NARROW . SEATING SETUP IN ARENA IS MOSTLY ON ONE SIDE . NEW MIDDLE SCHOOL THEATER MAY COMPETE FOR SCHOOL EVENTS NOW HELD IN THE THEATER . EXPANDED COMPETITION FROM THE GRAND OPERA HOUSE 2. How could foreseeable trends of demographic or geographic changes in the City impact the activity? . AS POPULATION AGE LEVELS CHANGE, IT IMPACTS TYPES OF EVENTS THAT WILL BE SUCCESSFUL . EMPLOYMENT LEVEL CREATES FINANCIAL IMPACTS ON EVENTS D -14 . . . POPULATION INCREASE CREATES MORE POTENTIAL USERS 3. Are there other functions which should be performed, or which are more important? . THE ORIGINAL INTENT OF THE BUILDING IS FOR THE CENTER TO BE A MUL TI- PURPOSE BUILDING THAT OFFERS SOMETHING FOR ALL AGES, THIS IS STILL THE INTENT OF THE CENTER AND ALL EVENTS AND ACTIVITIES ARE CONSIDERED TO BE OF EQUAL IMPORTANCE. 4. What mechanisms are there for citizen feedback to department activities? What kind of feedback has been received? What are common complaints and compliments? . NO FORMAL PROCESS IS ESTABLISHED FOR FEEDBACK . FEEDBACK IS RECEIVED OVER THE TELEPHONE OR THROUGH THE MAIL . COMPLAINTS ý temperature in theater Ý lack of parking I parking tickets Ý events having to be held over ice (too cold) Ý type of seating (bleachers) Ý Fifth Street overhead door being too narrow Ý limitations (physical and structural) of the building Ý ice floor covering Ý no dock level entry Ý wheelchair seating . COMPLIMENTS Ý types of events offered Ý many thank yous are received from user groups Ý professionalism and cooperative staff 5, Is this program / service a high City priority per City Council goals and priorities, or legal mandates? . DOES NOT SEEM TO BE A HIGH PRIORITY AT THIS TIME . NOT LEGALLY MANDATED D -15 ,- 10. 6. Is this program required by federal, state or local regulations? NO What body has oversight/review authority over work products or processes? OSHA, FLSA, EEOC, Teamsters Union and Civic Center Commission. Special licenses -- liquor, beer, food, dance hall, theater and ISCAPIBMI Are common City policies in these areas adequately met? YES Are there other requirements unique to this activity? NO 7. Can we do away with this program? It is possible, if you so choose. Ramifications are obvious, 8, Can the program be outsourced? YES, OPTIONS INCLUDE: -I lease entire operation -I private management -I sell entire building Are there private sector or other public sector agencies that are providing a similar service? FAIRGROUNDS GRAND OPERA HOUSE HOTELS / MOTELS DIAMOND JO COLLEGES 9, Can certain functions be shared with another department to provide some of the program processes or procedures in a more effective or efficient manner? NO Should the program be shifted internally to another department or division to make it more effective or efficient or because another department has similar functions it is cu"ently providing? NO D - 16 11, 12. 13. 14. 15. . , Is there updated technology or other techniques that could help to address issues, improve effectiveness and/or efficiency of service provisions? . HAVE OUR OWN WEB SITE . CALLER 1.0, . MARQUEE FOR THEATER . INFORMATION LINE (TELEPHONE) Is this program in whole or in part a duplication of service provided elsewhere? NO Is the service being provided in a cost effective manner now? YES How do we compare in delivery of the service and staffing levels to cities with comparable programs and/or private enterprise? . SIX FULL TIME STAFF POSITIONS HAVE BEEN ELIMINATED OVER THE YEARS AND THE NUMBER OF EVENTS HELD AND VISITORS HAVE INCREASED . OUR STAFF LEVEL APPEARS TO BE LESS THAN OTHER FACILITIES If others operate more efficiently, are there obstacles to operating as efficiently? . ICE / NON-ICE EVENTS CONFLICT AND IT IS COSTLY TO CHANGE OVER FROM ONE TYPE OF EVENT TO ANOTHER . CONSISTENT LEVEL OF EVENT ACTIVITY . LOCATION AND VISIBILITY OF OFFICE . BUILDING LIMITATIONS Have questions and issues presented by City Council been previously addressed? YES Specifically identify cost reduction measures, including possible personnel reductions, and the ramifications of these reductions. . REPLACE BUILDING SUPERVISOR POSITION WITH A MAINTENANCE WORKER. ELIMINATES SOME PART-TIME HOURS ALSO. D - 17 ----~".__..-_... " ~. . FACILITY MANAGEMENT IS ADDRESSED ELSEWHERE AND MAY NOT RESULT IN COST REDUCTIONS THINGS THA TARE CURRENTL Y BEING OUTSOURCED . most performance sound equipment and setup . pipe and drapes for conventions . catering . performance stage lighting . trash pickup . some ticket sales are done through outlets . ticket printing . freon related maintenance . some maintenance duties - specialized or heavy linen for events . off duty police * ITEMS ALREADY BUDGETED IN C.I.P. D -18 . , ~~ Dubuque Five Flags Center Mission Statement We provide an economic stimulus and diverse life enriching experiences for the people of Dubuque and the tri-state area, in a safe and well-maintained facility and [with] support services for event hosts and their guests, Operating Culture Statement We are a knowledgeable, skilled, and flexible team of service-oriented professionals who help create an enjoyable experience for users and guests of the Five Flags Center. Key Result Areas (KRAs) We will focus on the following key result areas to assure we achieve or mission while demonstrating the attributes of our desired operating culture. Physical plant Management It is essential that we have a safe, well-maintained and accessible facility that provides a pleasant and functional environment for events. We believe: »- The condition and appearance of the building is a reflection of our staff and our city. »- Safety is everybody's responsibility. »- Changes in the facility must reflect changes in our role in the community. . Accommodate a variety of events. . Respect historical significance, Critical Objectives: 1, Maintain compliance with all codes - Building, Fire, Safety, ADA, Health, OSHA, etc. 2. Facility maintenance process in place, including annual "spring cleaning." 3, Develop and maintain a preventative maintenance program. 4. Maintain a five-year capital-improvement program. D -19 -. ,--_. ~ ,. ~ " Events Management Our internal processes must consistently result in an efficient and positive experience for our users from the point of first contact through final settlement. We Believe: ~ Delivering on commitments builds organizational integrity. ~ Event management is a seamless team driven process ~ The process can always be improved, ~ Process improvement is a team responsibility ~ Team members are individually and collectively responsible for execution of the process. ~ Every interaction with a user is an opportunity to foster the relationship. ~ Open dialog leads to mutual understanding. Critical Objectives: 1. Develop and maintain a building policy manual. 2. Develop and maintain a comprehensive event process flow document 3. Develop and maintain a User-friendly contract development/insurance process. 4. Develop and implement an "Event Evaluation" tool for users, 5, Develop and implement a "Post Event" documentation process. 6. Schedule and conduct pre and post season hockey team building session. Marketing and Public Relations Positive visibility among event planners and promoters along with a reputation for delivering value and service will assure we attract and retain a solid base of users, We believe: ~ ~ ~ Reputation is an early selection criterion for users. ViSibility and awareness are key components of marketing. The image of The Five Flags Center is inseparable from and contributes to the image of the events we host An active presence in the "events" industry helps build visibility and awareness, ~ D -20 . , Critical Objectives: 1. Develop and maintain an "Event Industry" marketing strategy (IAAM). Manager attends IAAM meetings/conference 2, Develop and maintain a "Facility Awareness" (in the industry) strategy, 3. Develop and maintain a list of local and regional media contacts, 4. Develop and implement an "Events Awareness" strategy. Customer Service It is incumbent upon all our staff to proactively manage the experiences of our guests. We believe: þ þ þ þ Customer service is an attitude - a habit of thinking and behaving. Customer service is measured in terms of perceptions, Perceptions are derived from experiences. Every interaction with a customer is an opportunity to create a positive perception, Our success depends on user's success, þ Critical Objectives: 1. Develop and implement customer service training program for key employees, 2. Develop and implement a customer service feedback tool. Fiscal Responsibility We have an obligation to prudently balance our mission to serve the diverse needs of the community with the financial support from the citizens of Dubuque. We believe: Þ The citizen's expect and deserve value for their investment in The Five Flags Center. Þ Diverse life-enriching experiences are an investment in the community's quality of life. Þ Users and customers are willing to pay for value, Þ Value is determined by perceptions in the market place. D -21 --""",""'" .- .. Critical Objectives: 1. Meet all budget guidelines set by City Council. 2. Review and revise performance measures of our budget document. 3. Calculate and track "economic impact" of events. 4. Review staffing levels for different types of functions. 5, Develop and conduct an annual review process to assess fees and charges. D -22 -. ~o_--". . ,."."....- BrookinDS, SD Cedar Ranids, IA Daven~rt, IA Grand Forks, ND Grand RaDids, MI Kennewlck, WA MackinawCltv, MI Muskenon. M1 S~ncer, IA To~ka. KS Vicksbum, MS Account MileaJ!e Chart 0 409 505 266 805 1440 1184 '" 6 ~ ~ 409 0 86 589 413 1776 795 812 172 401 i ~ g: 505 86 0 673 329 1816 795 420 238 385 883 I "8 " 266 589 673 0 906 564 336 322 1366 680 '" ¡; is. ~ 913 435 2141 237 41 648 '" ¡; is. ~ g: 805 413 1440 1776 ~ ~ ~ 237 2028 1161 ~ I 0 -'i' ~ Æ g 172 238 322 435 648 1510 696 654 0 324 1106 I 401 385 425 664 750 1646 985 757 f < i a 425 799 664 1447 329 906 0 1816 1366 795 647 812 420 336 913 41 2116 271 1184 883 799 1447 926 2345 1161 932 324 0 827 1106 827 0 2141 0 2028 2116 750 929 1510 1646 2345 564 680 0 271 0 654 696 985 757 932 Topeka Performing Arts Center 214 SE 8"' Avenue Topeka, KS 66603 Phone: 785-234-2787 Fax: 785-234-2787 www.toactix.ol1! Concert Capacity: u.s. Cellnlar Center / 370 I~ AvenueNE Cedar Rapids, IA 52401 Phone: 319-398-5211 Fax: 319-362-2102 www.midwestwi Concert Capa CITY OF DUBUQUE, IOWA MEMORANDUM JeWN¡¿ f3MNId oa:2 March 10, 2004 TO: Michael C. Van Milligen, City Manager FROM: Gil D. Spence, Leisure Services Manager SUBJECT: Study to Privatize Management of the Five Flags Center INTRODUCTION The purpose of this memorandum is to communicate the final report on private management of the Five Flags Center. BACKGROUND At the City Council goal-setting session in August 2003, the City Council asked that a study be done of the operation of the Five Flags Center to see what could be done to hold the line on, or reduce the property tax support. All options were to be considered, including private management The privatization review was completed with the review committee comprised of the following individuals: Gil Spence """"""""""""""""""'" Leisure Services Manager Paula Jo Wolfe """""""""""""""" Civic Center Division Manager Peggy Degnan """""""""""""""'" Events Coordinator John Richardson """"""""""""""" Acting Operations Supervisor Pauline Joyce """"""""""""""""" Administrative Services Manager Cindy Steinhauser """"""""""""'" Assistant City Manager Dawn Lang """"""""""""""""""'" Budget Director Rich Russell ..................................... Building Services Manager continued privatization of FF management page two A "Request for Proposals" was developed (copy attached) and mailed to five different firms, The following three firms submitted proposals on February 2, 2004: SMG 701 Market Street Philadelphia PA 19106 Kinseth Hospitality Group 2 Quail Creek Circle North Liberty fA 52317 Compass Facility Management, Inc. Suite 200 Park Plaza Building 6th and Duff Streets Ames IA 50010 The committee, along with Civic Center Advisory Commission members Mike Brannon and Rod Bakke, interviewed all three firms on February 23rd, DISCUSSION To aid the City Council decision on whether to privatize the management of the Five Flags Center or not, the committee developed the following list of issues and questions for consideration when making the decision: . Will private management change the mission and vision of the Center? Is the decision to privatize based on subsidy reduction, how the building would best operate, or both? ,/ In the approach to subsidy reduction, should we emphasize increased revenue or reduced expenses? Increasing the number of ticketed events will increase tourism, which in turn generates increased hotel/motel taxes, sales tax, parking fees and other such items that directly impact the City's budget. If the bottom line is a main concern: strict enforcement of the no carry-in food and drink policy, rental rates, and other charges needs to be done regardless of whether the facility is publicly or privately managed. This will impact a number of existing user groups. . All three proposals speak of growing the business. When non-ice hours are increased, ice users will have less ice time. If ice programming is expanded, non- ice users and present ice users will have less time, Does the City of Dubuque want to change the name of Five Flags by selling naming rights whether the facility is publicly or privately managed? . To what extent should the impact of privatization on the present staff be part of the consideration? As the committee studied the concept of private management, the following advantages and disadvantages were identified: continued privatization of FF management page three . Advantages ,/ possible reduction in subsidy ,/ improved marketing of the building on a local, regional and national level ,/ larger network available to attract a greater number and variety of spectator shows to Dubuque ,/ increased communication with peers in other facilities to discuss problems, issues, and touring shows ,/ customer service, and other training opportunities for employees ,/ part of a larger purchasing network for equipment and supplies . Disadvantages ,/ impact on employees - some may lose their jobs and benefits ,/ loss of local control, although this can be reduced in the final agreement ,/ There is a fee to be paid the management company that will initially increase the tax support. ,/ loss of civic responsibility in the way the building operates Attached is a summary sheet prepared by the committee for each of the three firms that were interviewed. The summary sheets outline the terms each proposes for the agreement, examples of how they will save money, strong points and weak points, For ease of comparison of the terms each proposes, the City pays all expenses and collects all the revenue, The subsidy all three firms refer to is the tax support for FY 2004 shown in the RFP, except SMG, which uses an average of the last three years, If the City Council decides to pursue private management, the committee recommends the proposal from SMG be selected, The committee feels the SMG proposal is the strongest for the following reasons: . They are a large firm and have transitioned many facilities from public to private management . With 168 facilities that they manage, SMG has so much power in the business they are able to bypass some promoters and work directly with agents of the entertainers. . They have a large purchasing power for equipment and supplies, including such big items as dasher boards, continued privatization of FF management page four . The committee feels SMG has a greater booking leverage to bring shows and acts to Dubuque. Understand and accept the no competition clause with the Grand River Center. SMG will focus on generating additional revenue to reduce the subsidy while looking for cost saving measures, Extensive experience managing entertainment shows and acts, Staff that is retained will have salaries and benefits equal to, or better than, what they have, except their retirement system will change and they will no longer accumulate credits toward the Iowa Public Employees Retirement System. The review committee also studied the City's operation of the Center to analyze operational efficiencies and procedures to determine if the tax subsidy can be reduced. A detailed report accompanies this memorandum for your review, The following is a list of the recommendations included in that report: . The capital improvement and equipment items suggested in section three of Executive Summary be further investigated and incorporated into the budget process as funding allows. . Invitation to Bid be sent out to outsource the concession operation, Tax asking reduction from this item is estimated at $40,000. If the current Building Supervisor is promoted to the vacant Operations Supervisor position, the building supervisor position be down graded to maintenance worker. Tax asking savings would be $10,118. Naming rights for the Center be sold. To do this, a consultant would be hired and paid a percentage of the naming rights revenue because staff does not have the time and expertise to do this. Since this is such an unknown, no estimate will be made as to how much tax asking reduction there could be. A more aggressive approach be taken to co-promote and self-promote events. This assumes some financial risk, but could yield financial reward. Further study maximizing use of the building during slow months. To improve the bottom line, strict enforcement of the no carry-in food and drink policy will be done. continued privatization of FF management page five The FY 2005 operating budget submitted by staff reduces the property tax support by $24,619 over the FY 2004 benchmark of $741 ,000 used by the three firms that submitted proposals. When that amount is added to the recommendations listed above, a property tax savings of $74,737 would result This is without any naming rights or business growth being factored in, If we are to grow business much beyond where we are now, we will need to look at shuffling some positions, Maybe eliminating a maintenance position and creating a marketing type position, Also, we are seeing growth in the concession business and the civic center manager thinks we may eliminate the property tax support for that activity, If we can do that, we may want to keep that operation in-house, but the same $40,000 savings would result. ACTION STEP This report is submitted for City Council review, Action requested is that the City Council provide direction on whether private management should be pursued or not. GDS:et attachments FIVE FLAGS CIVIC CENTER COMPASS PROPOSAL Terms . 5 years, with two three-year renewal options . $84,000, annual CPI adjustment plus 20% of operating budget savings and 5% of naming rights and advertising revenues . Penalty for non-performance - waive variable fee equal to shortfall . FY 2004 tax asking of $741,000 will be used as the subsidy benchmark, Examples of how they will save money . Grow business . Advertising and sponsorships Naming rights . TicketMaster, $15,000 plus Non-profit organizations provide workers for concession stands and as ushers . Reduce City's subsidy level by up to one-third, including Compass fees, in three years . Savings in staff costs of $74,040 Strong points . Management services to mid-side and smaller markets . Experience working with local boards . Three management meetings each year, bi-weekly conference calls, annual meeting of all department heads and managers of all Compass facilities, and training sessions for specialized areas and services . Strategic Visioning Program . Transition Plan Retain employees, review performance after six months . Summer theater program In-house ice programming . Clearer vision of tertiary markets . Raise funds to renovate concession stands now . Four other Compass historic theater network Most of their facilities are mixed use, ice and non-ice. . Daily e-mails of what acts/events are touring Has transitioned a number of public facilities to private management . Has no problem with the no competition clause with the Grand River Center Weak points . How will Cedar Rapids and Davenport facilities compete with Five Flags Impact on staff Reduce secretary to part-time Eliminate one utility worker Reduce all salaries . Add business office coordinator . Add marketing manager FIVE FLAGS CIVIC CENTER SMG PROPOSAL Terms . 5 years . $75,000 per year, annual CPI adjustment plus 50% of operating budget savings (not to exceed $250,000) . Will contribute $75,000 toward revenue generating projects . Tax asking from the last three years will be used as the subsidy benchmark. Examples of how they will save money . Grow business (May - September) . Advertising and sponsorships Non-profit organizations provide workers for concession stands . TicketMaster contract Strong points . Manage 168 facilities, 142 are government owned and they transitioned them to private management . Customer service training . Quarterly meetings - Contract Administrator, General Manager, SMG Regional Manager, bi-weekly conference calls, and daily e-mails Re-branding of Five Flags Center . Same person will be the transition person, contact person, and regional booking manager . Work directly with some agents Salaries and benefits equal to or better, stress career path for employees, and honor seniority . Mystery shopper program . Maintenance software . Stronger network - maybe we could get favors Most of their facilities are mixed use, ice and non-use Facilities are a further distance apart and will compete less with each other Has no problem with the no competition clause with the Grand River Center Large purchasing power for equipment and supplies, including such big items as dasher boards Weak points Contact person lives in Florida Impact on staff Eliminate concession manager Eliminate two utility workers . Add marketing / sales coordinator . Add bookkeeper / payroll . Add director of finance and concessions FIVE FLAGS CIVIC CENTER KINSETH PROPOSAL Terms . 5 years . $24,000, plus 50% of operating budget savings FY 2004 tax asking of $741 ,000 will be used as the subsidy benchmark. Examples of how they will save money . Labor cost savings in administration, property maintenance, and sales . National contracts and purchasing power . Concession management New business Partnerships . Advertising . Naming rights Strong points . Create a group sales program for people coming to the hotel . Good food and beverage experience . Sales people in their other hotels . Synergy between hotel and Five Flags Experience with floor shows Package show tickets with hotel room . Twenty-four hour telephone answering Weak Points Hotel sales department would be contact to schedule events Lack of experience - confident they can learn ,/ stage shows ,/ working with event promoters ,/ ticket office management ,/ ice scheduling and management . No leverage to attract events . Concerned about not being able to schedule conferences and would want to re-visit the no competition with the Grand River Center clause prior to signing final agreement Impact on staff Keeps only the Event Coordinator and Technical Director Positions eliminated and responsibilities assumed by Holiday Inn staff include: civic center manager, operations supervisor, secretary, concession manager, building supervisor and two utility workers. Dubuque Five Flags Center Mission Statement We provide an economic stimulus and diverse life enriching experiences for the people of Dubuque and the tri-state area, in a safe and well-maintained facility and [with] support services for event hosts and their guests, Operatina Culture Statement We are a knowledgeable, skilled, and flexible team of service-oriented professionals who help create an enjoyable experience for users and guests of the Five Flags Center. Key Result Areas (KRAs) We will focus on the following key result areas to assure we achieve or mission while demonstrating the attributes of our desired operating culture, Physical Plant Management It is essential that we have a safe, well-maintained and accessible facility that provides a pleasant and functional environment for events, We believe: >- The condition and appearance of the building is a reflection of our staff and our city. >- Safety is everybody's responsibility, >- Changes in the facility must reflect changes in our role in the community, . Accommodate a variety of events. Respect historical significance. Critical Objectives: 1. Maintain compliance with all codes - Building, Fire, Safety, ADA, Health, OSHA, etc, 2. Facility maintenance process in place, including annual "spring cleaning." 3, Develop and maintain a preventative maintenance program. 4. Maintain a five-year capital-improvement program, Events Management Our internal processes must consistently result in an efficient and positive experience for our users from the point of first contact through final settlement. We Believe: >- Delivering on commitments builds organizational integrity. >- Event management is a seamless team driven process ~ The process can always be improved, ~ Process improvement is a team responsibility ~ Team members are individually and collectively responsible for execution of the process, ~ Every interaction with a user is an opportunity to foster the relationship, ~ Open dialog leads to mutual understanding, Critical Objectives: 1. Develop and maintain a building policy manual. 2, Develop and maintain a comprehensive event process flow document. 3, Develop and maintain a User-friendly contract development/insurance process, 4. Develop and implement an "Event Evaluation" tool for users, 5, Develop and implement a "Post Evenf' documentation process. 6. Schedule and conduct pre and post season hockey team building session. Marketing and Public Relations Positive visibility among event planners and promoters along with a reputation for delivering value and service will assure we attract and retain a solid base of users, We believe: ~ Reputation is an early selection criterion for users. ~ Visibility and awareness are key components of marketing, ~ The image of The Five Flags Center is inseparable from and contributes to the image of the events we host. ~ An active presence in the "events" industry helps build visibility and awareness, Critical Objectives: 1, Develop and maintain an "Event Industry" marketing strategy (IAAM), . Manager attends IAAM meetings/conference 2. Develop and maintain a "Facility Awareness" (in the industry) strategy. 3. Develop and maintain a list of local and regional media contacts, 4, Develop and implement an "Events Awareness" strategy, Customer Service It is incumbent upon all our staff to proactively manage the experiences of our guests, We believe: ~ Customer service is an attitude - a habit of thinking and behaving. ~ Customer service is measured in terms of perceptions. ~ Perceptions are derived from experiences. ~ Every interaction with a customer is an opportunity to create a positive perception. ~ Our success depends on user's success, Critical Objectives: 1, Develop and implement customer service training program for key employees, 2. Develop and implement a customer service feedback tool. Fiscal Responsibility We have an obligation to prudently balance our mission to serve the diverse needs of the community with the financial support from the citizens of Dubuque. We believe: ~ The citizen's expect and deserve value for their investment in The Five Flags Center. ~ Diverse life-enriching experiences are an investment in the community's quality of life. ~ Users and customers are willing to pay for value, ~ Value is determined by perceptions in the market place. Critical Objectives: 1, Meet all budget guidelines set by City Council. 2, Review and revise performance measures of our budget document. 3. Calculate and track "economic impact" of events, 4. Review staffing levels for different types of functions. 5. Develop and conduct an annual review process to assess fees and charges. CITY OF DUBUQUE, IOWA January 6, 2004 REQUEST FOR PROPOSALS FOR MANAGEMENT OF THE FIVE FLAGS CENTER The City of Dubuque, Iowa is soliciting proposals from qualified firms to provide management services for the Five Flags Center. The City Council has asked staff to explore private management as a means to hold the line on, or reduce, the level of property tax support now provided the Center. Included with the Request for Proposals is material that describes the Center and the current activity level. Dubuque is located on the Mississippi River west of the Illinois-Wisconsin border and is connected to both states by bridges, It is the educational, industrial, and commercial center for the tri-state area and has a stable and diversified manufacturing base and a growing service sector. The City's Census population is 57,686. The City is approximately 30 square miles in area. The City's annual budget is over $90 million and funds a full range of services. The Dubuque area economy has remained strong with unemployment at record low levels and a steady growth in manufacturing and construction jobs. The city's central retail area serves almost all of the fifteen surrounding counties in Iowa, Illinois and Wisconsin, The last few years has seen major renovation to the four block areas on both sides of the Center. A four block pedestrian mall has been reopened, many restaurants and shops have opened in renovated buildings, companies have moved into the downtown area. There is also substantial commercial activity west of the central business district area along U,S, Highway 20, including an enclosed shopping mall with several national retailers, In 1999, the City approved the construction of over one million square feet of new commercial, office, industrial and institutional space, Residents of the Dubuque area make extensive use of the recreational opportunities afforded by the Mississippi River, which are complemented by the City and County park systems. This includes outdoor swimming pools, picnic areas, ice-skating rinks, baseball diamonds, tennis courts and a public golf course, Several recreational areas are situated on the bluffs overlooking the mighty Mississippi River. The City has a wide variety of cultural offerings including art galleries, theater groups and symphony concerts, In 1985, pari-mutuel gaming was introduced to the community and in 1991, riverboat gambling became an added attraction, The City's Mississippi riverfront is the location of this riverboat gambling and regular cruise boats. The port facilities are located in the historic Ice Harbor area. Dubuque enjoys approximately one million tourists annually and this number is anticipated to grow. continued The Five Flags Center is located only a few blocks from the Port of Dubuque, which has recently seen construction of the $188 million America's River Project. The America's River project includes: The National Mississippi River Museum and Aquarium, a complex located next to the Ice Harbor; The Grand Harbor Resort and Waterpark, a 200-room hotel and indoor Waterpark along the riverfront; The Grand River Center, a 135,000 square foot education and conference center and a 2000' Mississippi Riverwalk, The National Mississippi River Museum and Aquarium includes: 15 aquariums; Immersion theater showcasing the Mississippi River's creation, floods, history and underwater life; outdoor wetland featuring natural and living history with floating laboratories and classrooms; stream tables; an educational overnight program which lets visitors sleep on a "boat and breakfast" National Historic Landmark steamboat. The Grand Harbor Resort and Waterpark includes a seven story hotel with approximately 200 rooms and a 24,000 square foot indoor waterpark, Phase II includes 150 additional rooms and an 18,000 square foot addition to the waterpark. The Grand River Center is a state of the art education and conference center with a 30,000 sq, ft, exhibit hall, 12,000 sq, ft, meeting rooms, 12,000 sq, ft. ballroom, a spectacular River room which extends out over the Mississippi River and over 25,000 sq, ft of indoor and outdoor prefunction space, The Mississippi Riverwalk and Amenities includes a riverwalk which links the Alliant Energy Amphitheater, the American Trust River's Edge Plaza, a landing for the Delta Queen, boat docks, public art and an 18-mile bike-hike trail connection to the Heritage Trail. For additional information on Dubuque and recent initiatives, please visit the following web sites: www.qrandrivercenter.com www,rivermuseum.com www.qrandharborresort.com www.dubuquechambercom www.qreaterdubuque.orq www.americasriver.com Section 1.1 Section 1,2 Section 1,3 Section 1.4 Section 1.5 Table of Contents REQUEST FOR PROPOSALS Introductory Letter ARTICLE I GENERAL INFORMATION Facility History Facility Mission Statement, Operating Cultural Statement, Result Areas Contact Timetable Review of Qualifications and Key ARTICLE II QUALIFICATIONS, RESPONSIBILITIES FORMAT AND DEADLINE Section 2,1 Section 2.2 Section 2.3 Section 3,1 Section 3.2 Section 3,3 Section 3.4 Section 3,5 Section 3,6 Section 3.7 EXHIBITS Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 Exhibit 5 Qualifications Responsibilities Format and Deadline ARTICLE III STATEMENT OF QUALIFICATIONS Firm Background General Management Experience Concession and Food Management Facility Operation Note and Restrictions Contract Arrangements Client References Attachments Operating Income and Expense Comparison / FY 2005 Budget Event Days and Attendance Schedule Organizational Chart Literature - Exterior and Interior Mission Statement, Operating Cultural Statement, and Key Result Areas ARTICLE I GENERAL INFORMATION Section 1.1. Facilitv Historv The history of the Five Flags Center begins on November 10, 1910 with the opening of the Majestic Theater. The Theater was touted as the most beautiful and safest theater in Iowa, modernized down-to-the-minute and booked on a circuit of 87 theaters. Designed by America's premier theater architects C, Wand George L, Rapp of Chicago, the Majestic Theater is an ornate Renaissance Revival style with French and Italian influences, Vaudeville flourished at the Majestic, and some of the most famous performers of the period -- AI Jolson, Eddie Cantor, Sarah Bernhardt, Ethel Barrymore, and others, appeared at the opulent, Majestic show house. Movies replaced live theater in 1929, and the Majestic's name was changed to The Orpheum, The Orpheum remained a movie house for many years, bringing the world of Hollywood to Dubuque. By 1969, however, the theater building was earmarked for demolition. Saved by a group of citizens who felt the theater was an irreplaceable treasure, it underwent an extensive two-year renovation from 1974-1976. The "Five Flags Committee," named after the five national flags that have flown over Dubuque since Marquette and Joliet explored the Upper Mississippi in 1673, raised enough funds to complete the restoration behind the concept of building an adjoining civic center. The restored Orpheum was renamed the Five Flags Theater, and officially reopened on March 13, 1976, Since then, the theater has undergone its second major renovation. Special care was taken to preserve the historic Five Flags Theater with the expertise of the areas premier restoration professionals, The restored theater glows with glittering gold, bronze, copper, and burgundy, On August 17, 1976 a $3,7 million bond issue was passed to construct the Five Flags Center next to the theater and the two buildings became one, The grand opening of the Five Flags Center was held on May 24, 1979 and the building has served the tri-states since, The arena includes 25,000 square feet of unobstructed space, around 1,215 permanent elevated cushioned seats, and bleacher seating for 3,850. Performers such as Bob Hope, Van Halen, Bill Cosby, Kiss, Air Supply, Bob Dylan, The Goo Goo Dolls, The Harlem Globetrotters, Collective Soul, Alan Jackson and Willie Nelson have all been hosted in the arena. In addition to the arena and 711-seat historic theater, the Center has three meeting rooms used for a variety of events and activities, promenade space, office areas and storage. Section 1.2. Mission Statement, OperatinQ Culture Statement. and Kev Result Areas See Exhibit 5 Section 1.3. Contact Below is the designated contact relative to this RFP, It is requested that any and all questions be directed to this individual only, Gil D, Spence Leisure Services Manager 2200 Bunker Hill Road Dubuque, IA 52001-3010 (563) 589-4263 Section 1.4. Timetable The City reserves the right to adjust this Timetable should circumstances for adjustment benefit the process, January 5, 2004 February 2, 2004 February 2, 2004 through February 13, 2004 City Council approval of RFP Proposals due back from firms by 5:00 p.m. Review proposals and clarify any questions, potential Interviews February 13, 2004 through March 2004 City Council decision on if they want to proceed with private management April 2004 through June 2004 July 1, 2004 Management Agreement negotiated and signed Management Agreement effective Section 1.5. Qualifications Qualifications will be reviewed and evaluated by a committee of the City which will make a recommendation to the City Manager and City Council. The City Council will make the award of the management contract and approve final terms. The City reserves the right to reject any or all firms, to waive any informality or defect in any submittal or to amend or supplement, in whole or in part, this RFP. The City further reserves the right to extend any and all schedules and to negotiate any terms and conditions in the Management Agreement. The City will award the contract to the Firm they deem most appropriate, based solely on their judgment, without further discussion. The submitting firms will not be compensated for any expenses in the process of responding to this RFP. . ~...~- ARTICLE II QUALIFICATIONS, RESPONSIBILITIES, FORMAT AND DEADLINE Section 2.1. Qualifications Firms qualified to be considered for award: 1. Will have minimum of five years experience in the events facility general management and concession management field. 2. Will provide a complete and comprehensive Statement of Qualifications. 3. Will be able to cite specific success in the events facility management field, 4, Will provide a contract format for consideration regarding the type of agreement sought 5, Will respond to questions with specific names, dates and dollars, The selected firm must become registered to do business in the State of Iowa in the areas necessary to perform the Management Agreement. Section 2.2. Responsibilities The firm awarded the contract will be expected to assume management of the facility on July 1, 2004. Such firm will be responsible for all of the obligations and duties set forth in this RFP. The firm awarded the contract will be expected to produce and act upon a plan to make the transition from the present management This plan must be submitted to Gil Spence no later than two (2) weeks after the award of the contract Prior to submitting its qualifications, each firm shall make all investigations and examinations necessary to ascertain conditions and requirements affecting the operation of the Facility. Qualified firms will know how to proceed with investigations and examinations; therefore, the failure in this area will not relieve the successful firm from the obligation to comply, in every detail, with all provisions and requirements Section 2.3. Format and Deadline Each envelope is to have a complete return address in the upper left-hand corner and the marking "Facility Management RFP" in the lower left hand corner. Eight (8) copies of submittal are to be provided, Submittals should be limited to no more than 30 pages, not including attachments, Firms considered to be finalists may be interviewed, Each firm interviewed may have no more than two representatives, Interviews should take no more than two hours each. Submittals are due by 5:00 p.rn. February 2, 2004, envelope, are to be delivered to the offices of: Gil D. Spence Leisure Services Manager 2200 Bunker Hill Road Dubuque IA 52001-3010 Complete submittals, sealed in one Submittals received after the deadline will remain sealed in the envelope and returned to the firm at the address on the exterior of the envelope. ARTICLE III STATEMENT OF QUALIFICATIONS Section 3.1. Firm Backaround 1. Discuss your firm's management experience with multi-use events facilities, particularly similar facilities when citing examples, 2, Discuss your firm's management experience with concession management in multi- use events facilities, particularly similar facilities when citing examples. 3. Discuss your firm's management experience with multi-use events facilities owned by local government Include information relative to the line of authority from the government entity to the on-site management as well as if these facilities operate at a surplus or a loss and why. 4. Discuss circumstances within the last five years where your firm was excused or terminated from a contract for facility management. 5. Provide the most recent balance sheet and financial information regarding the financial stability of the firm. Please indicate whether the financial information is to be kept confidential. 6. Discuss your firm's experience working with local government boardslcommissions and City Council. Section 3.2. General Manaaement 1. Describe notable improvements or innovations your firm has recently instituted at other facilities. Specifically in the area( s) of operating surpluslloss, utilization, maintenance, utility cost controls, promoter cultivation and relations, community relations and perception, 2. Describe your firm's approach to administrative and financial systems and procedures. Specifically monetary controls and system, personnel recruitment and retention, organizational structure and the division of responsibility, 3, Describe your firm's approach to facility maintenance. Include daily, periodic and scheduled maintenance, 4, Describe the form of staff organization, background and experience, training, advancement and compensation of personnel assigned to other facilities your firm manages, 5. Discuss your approach to developing a similar staffing plan for this facility, including your firm's commitment to retain current employees, 6, Describe any services that your firm provides and believes are useful and outstanding in the context of the overall management abilities of the firm. 7. Discuss your firm's experience and approach in working with groups and organizations such as: the convention and visitors bureau; athletic organization; local school events groups; local industry groups; service clubs; and cultural art organizations. 8, Describe your firm's approach to and examples of successfully attracting top name performers and performing groups, 9. Describe your firm's marketing plan for maintaining and enhancing the event activity level at the facilities. Include booking policies and specific initiatives your firm would undertake including the budgetary impact of such initiatives. 10. Describe your firm's ability to use technology in promotion of the facility and events. 11. Describe your firm's experience with theater management and working with theater groups, 12. Give examples of events, facilities your firm manages, has self-promoted. 13, Describe your firm's experience scheduling and managing hourly ice usage and working with ice user groups. Section 3.3. Concession and Food Manaqement 1, Describe your firm's experience with concession, food and beverage options, Specifically: pricing, surplus floss, delivery approaches, vendors, operating procedures, quality and variety. 2. Describe your firm's experience with branded food vendors and a multi-use events facility where there are 100 to 150 event days per year. 3. Describe your firm's approach to the utilization of in-house concession facilities, Section 3.4. Facility Operation Notes and Restrictions 1. The Five Flags Center will not compete for the same type of events that can be held at the Grand River Center, unless the event comes through the Grand River Center, Those events include, but are not limited to: conferences/conventions, dinners/ banquets, meetings, receptions, and flat floor events. 2, All City of Dubuque usage will be with no rental fee charged, only staff and food/ beverage costs can be charged, Same applies to non-ticketed usage by the Dubuque Community School District. Graduation ceremonies are the only events this would apply to, as of now, Events where tickets are sold, rental fees do apply. 3. All fees and charges must be approved by the City of Dubuque, 4. All scheduling and booking policies and practices must be approved by the City of Dubuque. Section 3.5. Contract Arranqements Describe the type of contractual arrangement your firm generally seeks for general management of a facility such as this one. Include a discussion of the compensation arrangement and commissions, if any, and the criteria used in determining such. Private management contract options include, but are not limited to: lease the entire operation and private management. '._'~- ADMINISTRATION BUILDING MAINTENANCE ICE EVENTS CONCESSIONS TOTAL Percentage self-supporting . " '.' LEISURE SERVICES DEPARTMENT CIVIC CENTER DIVISION EXPENS&REVENUESUMMARY Fiscal Year 2005 expense revenue tax asking expense revenue tax asking expense revenue tax asking expense revenue tax asking expense revenue tax asking expense revenue tax asking ACTUAL FY 2003 $ $ 158,793 2,302 156,491 $ $ 269,178 269,178 $ 173,072 138,626 34,446 $ $ 490,053 273.230 216,823 $ 171,718 142,796 28,922 $ 1,262,814 556,954 705,860 $ 44.10% EXHIBIT 1, p. 1 of 8 10/24/2003 BUDGETED PROPOSED FY 2004 FY 2005 166,127 ~ 165,877 314,622 314,622 210,438 138,630 71,808 441,718 287,965 153,753 159,947 125,000 34,947 1,292,852 551 ,845 741,007 42.68% 176,991 ~ 176,741 280,952 - - 280,952 221,329 137,003 84,326 441,812 290,600 151,212 173,503 144,800 28,703 1,294,587 572,653 721,934 44.23% Section 3.6. 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EXHIBfT 1, p, 8 of 8 LEISURE SERVICES DEPARTMENT CIVIC CENTER DIVISION REVENUE FY 2001 FY 2002 FY 2003 FY 2004 ACTUAL ACTUAL ACTUAL BUDGET ADMINISTRATION Miscellaneous $ 7,249 $ 111 $ 2,303 $ 250 ICE Ice Skating Fees $ 10,625 $ 13,421 $ 11,172 $ 16,245 Ice Rental Fees $ 71,747 $ 77,408 $ 70,119 $ 76,060 Hockey Game Fees $ 58,173 $ 15,468 $ 38,844 $ 28,125 Rental, Ice Skates $ 2,358 $ 2,674 $ 4,113 $ 4,700 Ice Rental, Leased $ 15,619 $ 8,436 $ 14,367 $ 13,500 Miscellaneous $ 174 $ 12 $ 158,696 $ 117,407 $ 138,627 $ 138,630 EVENTS Catering $ 5,369 $ 1,528 $ - $ 5,000 Novelty Sales $ 10,260 $ 7,551 $ 5,072 $ 10,000 Events Revenue $ 197,233 $ 200,039 $ 259,075 $ 230,565 Invest, Earnings $ 600 $ 450 $ 582 $ 400 Advertising Displays $ 7,500 $ 5,500 $ 8,500 $ 7,500 Ticket Surcharge $ 34,500 $ 220,962 $ 215,068 $ 273,229 $ 287,965 CONCESSIONS Beer $ 34,117 $ 33,573 $ 45,517 $ 38,000 Food $ 62,797 $ 74,520 $ 95,325 $ 80,000 Liquor $ 934 $ 733 $ 661 $ 2,500 Catering $ 12,187 $ 1,903 $ 1,294 $ 4,500 $ 110,035 $ 110,729 $ 142,797 $ 125,000 TOTAL $ 496,942 $ 443,315 $ 556,956 $ 551,845 EXHIBIT 2, p, 1 of 2 CITY OF DUBUQUE FIVE FLAGS CENTER TOTAL FISCAL YEAR # OF EVENTS ATTENDANCE FY 2002 552 162,221 FY 2003 651 171,303 EXHIBIT 2, p, 2 of 2 CITY OF DUBUQUE FIVE FLAGS CENTER TYPES OF EVENTS FY 2002 FY 2003 FY 2004 ACTUAL ACTUAL BUDGETED Thunderbird hockey games 23 29 27 Public skating sessions 50 50 45 Contract ice hours 615 789 735 Theater performances I rehearsals I meetings 185 120 160 City meetings 75 78 80 Arena performances 41 48 50 Arena meetings I banquets I parties 2 3 0 Arena exhibition days 26 25 10 West Arena performances 5 9 15 West Arena exhibition days 4 4 4 Ballroom meetings I banquets 9 8 0 Ballroom exhibition days 4 8 3 Meeting room sessions 208 172 200 Self I co-promoted events 8 8 8 OTHER ITEMS OF NOTE Ice changeovers 20 13 14 Ice maintenance days 150 159 205 Regular ticket office service days 312 286 290 Events serviced by ticket office 160 103 125 lea ~I~-~ ..' COORDINATOR ---.- ~ EXHIBIT 3 DUBUQUE FIVE FLAGS CENTER ORGANIZATIONAL CHART [ LEISURE SER~ES MANAGER I I DIRECTOR I 1= TECHNICAL DIRECTOR I SECRETARY I -~I-'-~--_'~'_-_' - O~Ä~~~~- ~6~~~YR~j ~. [ :~~~R~I~~~ -J I !cONCESSIONS 1- MANAGER <D - "- 0 0. F----, ~ ~- ~ ;:: x w IiI r ;: c '= ~ - l~ ;; ;: ~ !' ,i i. <.c ~ 0 c. <j-- !:: "..'.1 ~ lIT ¡, I ¡ ~~ i. g I ""~ "0" m v CD >< w " 1 ¡",ellS U!DV'< ., ' . t I ~ =1 DI 3:1 OJi :JI ill! ¡ 0 : ",'Ç. ~ D 0 0 ~ci- i 0 C Q) L « 18811S Isn:>°l if) OJ 0 L.. Q) > L.. ..~..- ~... -_...~~ ..U I: !L! : , U~ !~,IV\./Yvi' r.' ¡II II.'.! ! If I~¡ i, 0 I: -~~,.'§¡ L. ,I . ~, ?i' ,.Ii II floc ~ If c'n~~,:~ê i ~I u ~ [oJ I r' <.D 4- 0 M è. .; f-- ;;; ~ w >! .- I I !, I 0 -, .~ I Ii ~ § II "'" I:=ï~ 1- L ~ ~~ c' ~ 0 ~vv - ! 'v -< /., ¡----r1-¡Y¿';v'<. I hi:, II I I~ I ~ U ~ ~ I '"' 4- 0 <T å. .,; f- CD :r: >< LLJ II I I I I I I' -Ë 0 C ill ... « (J] OJ 0 L>- 2 0 0 I ~ ': ~ 3' u S" .:= ""i2. ill .:::: L>- I I . ) /1 .~ . [ 1 ^¡ll i ~~! ~' § '" ~o ~ I I : I I ! i Q) C) I I ~ l~ LJ þ i : I ~ leeJ+S +sn:OOI _.~ ~ -,~.- - "--"""" ..~~._~ '.,^. ---~ -~.~.~"' ." .... EXHIBIT 4, p. 5 of 6 F'ive F~ags Center' Upper- Pr'OrTlenodo Concession (Office Gate Gate Gate D E F -C" '^1 MENS I" ï1 WOMENS r 1.G~te il Ii =::l ". , II ---_.-----h- OPE N -tt- ] rj U------U---= ..--+ Main Sireel <: SJ il.....-.-. - "V71 ~JD, <.0 "-- 0 <.0 0.. "" I- "" :r: >< w (r- e 0 ;=,\, Il I) ,~ (t",\,./ ~ , ~ ~ J @ (Ii "'= rr="v¡F'\ II II II , I I I - I I .---; I [ 6- ¡ I 1° ! ¡ : I I i I I II I I - I I II - I I ! I , , 1.1 ~ - ! I 1 j i ! ~ J ~ , ! J ~ I I I ~ - -~"'~ .,- EXHIBIT 5, p. 1 of 3 Dubuque Five Flags Center Mission Statement We provide an economic stimulus and diverse life enriching experiences for the people of Dubuque and the tri-state area, in a safe and well-maintained facility and [with] support services for event hosts and their guests. OperatinQ Culture Statement We are a knowledgeable, skilled, and flexible team of service-oriented professionals who help create an enjoyable experience for users and guests of the Five Flags Center. Key Result Areas (KRAs) We will focus on the following key result areas to assure we achieve or mission while demonstrating the attributes of our desired operating culture. Physical Plant Management It is essential that we have a safe, well-maintained and accessible facility that provides a pleasant and functional environment for events. We believe: > The condition and appearance of the building is a reflection of our staff and our city. > Safety is everybody's responsibility. > Changes in the facility must reflect changes in our role in the community. . Accommodate a variety of events, Respect historical significance, Critical Objectives: 1. Maintain compliance with all codes - Building, Fire, Safety, ADA, Health, OSHA, etc. 2. Facility maintenance process in place, including annual "spring cleaning." 3. Develop and maintain a preventative maintenance program. 4. Maintain a five-year capital-improvement program. Events Management Our internal processes must consistently result in an efficient and positive experience for our users from the point of first contact through final settlement We Believe: > Delivering on commitments builds organizational integrity. > Event management is a seamless team driven process EXHIBIT 5, p. 2 of 3 ~ The process can always be improved, ~ Process improvement is a team responsibìlìty ~ Team members are individually and collectively responsible for execution of the process, ~ Every interaction with a user is an opportunity to foster the relationship. >- Open dialog leads to mutual understanding. Critical Objectives: 1, Develop and maintain a building policy manual. 2, Develop and maintain a comprehensive event process flow document 3, Develop and maintain a User-friendly contract development/insurance process. 4, Develop and implement an "Event Evaluation" tool for users. 5, Develop and implement a "Post Event" documentation process. 6. Schedule and conduct pre and post season hockey team building session, Marketing and Public Relations Positive visibility among event planners and promoters along with a reputation for delivering value and service will assure we attract and retain a solid base of users. We believe: ~ Reputation is an early selection criterion for users. ~ Visibility and awareness are key components of marketing. ~ The image of The Five Flags Center is inseparable from and contributes to the image of the events we host. ~ An active presence in the "events" industry helps build visibìlìty and awareness. Critical Objectives: 1. Develop and maintain an "Event Industry" marketing strategy (IAAM). . Manager attends IAAM meetings/conference 2. Develop and maintain a "Facility Awareness" (in the industry) strategy. 3, Develop and maintain a list of local and regional media contacts. 4. Develop and implement an "Events Awareness" strategy. Customer Service It is incumbent upon all our staff to proactively manage the experiences of our guests. -~-_. ~,-------- - -.- ._,--= EXHIBIT 5, p. 1 of 3 Dubuque Five Flags Center Mission Statement We provide an economic stimulus and diverse lite enriching experiences for the people of Dubuque and the tri-state area, in a safe and well-maintained facility and [with] support services for event hosts and their guests. OperatinQ Culture Statement We are a knowledgeable, skilled, and flexible team of service-oriented professionals who help create an enjoyable experience for users and guests of the Five Flags Center. Key Result Areas (KRAs) We will focus on the following key result areas to assure we achieve or mission while demonstrating the attributes of our desired operating culture, Physical Plant Management It is essential that we have a safe, well-maintained and accessible facility that provides a pleasant and functional environment for events. We believe: ~ The condition and appearance of the building is a reflection of our staff and our city. ~ Safety is everybody's responsibility. ~ Changes in the facility must reflect changes in our role in the community, . Accommodate a variety of events. . Respect historical significance. Critical Objectives: 1, Maintain compliance with all codes - Building, Fire, Safety, ADA, Health, OSHA, etc. 2. Facility maintenance process in place, including annual "spring cleaning." 3. Develop and maintain a preventative maintenance program. 4. Maintain a five-year capital-improvement program. Events Management Our internal processes must consistently result in an efficient and positive experience for our users from the point of first contact through final settlement. We Believe: ~ Delivering on commitments builds organizational integrity. >- Event management is a seamless team driven process EXHIBIT 5, p. 2 of 3 > The process can always be improved. > Process improvement is a team responsibility > Team members are individually and collectively responsible for execution of the process. > Every interaction with a user is an opportunity to foster the relationship. > Open dialog leads to mutual understanding. Critical Objectives: 1, Develop and maintain a building policy manual. 2, Develop and maintain a comprehensive event process flow document. 3, Develop and maintain a User-friendly contract development/insurance process. 4, Develop and implement an "Event Evaluation" tool for users. 5. Develop and implement a "Post Event" documentation process. 6, Schedule and conduct pre and post season hockey team building session, Marketing and Public Relations Positive visibility among event planners and promoters along with a reputation for delivering value and service will assure we attract and retain a solid base of users, We believe: > Reputation is an early selection criterion for users. > Visibility and awareness are key components of marketing. > The image of The Five Flags Center is inseparable from and contributes to the image of the events we host. > An active presence in the "events" industry helps build visibility and awareness. Critical Objectives: 1. Develop and maintain an "Event Industry" marketing strategy (IAAM). Manager attends IAAM meetingslconference 2. Develop and maintain a "Facility Awareness" (in the industry) strategy. 3. Develop and maintain a list of local and regional media contacts. 4. Develop and implement an "Events Awareness" strategy. Customer Service It is incumbent upon all our staff to proactively manage the experiences of our guests. ~-- -- ----" -- ----, -,~ --~_.- EXHIBIT 5, p, 3 of 3 We believe: » Customer service is an attitude - a habit of thinking and behaving, » Customer service is measured in terms of perceptions, » Perceptions are derived from experiences, » Every interaction with a customer is an opportunity to create a positive perception, » Our success depends on user's success. Critical Objectives: 1. Develop and implement customer service training program for key employees, 2. Develop and implement a customer service feedback tool. Fiscal Responsibility We have an obligation to prudently balance our mission to serve the diverse needs of the community with the financial support from the citizens of Dubuque. We believe: » The citizen's expect and deserve value for their investment in The Five Flags Center. » Diverse life-enriching experiences are an investment in the community's quality of life. » Users and customers are willing to pay for value. » Value is determined by perceptions in the market place, Critical Objectives: 1. Meet all budget guidelines set by City Council. 2. Review and revise performance measures of our budget document 3. Calculate and track "economic impact" of events. 4. Review staffing levels for different types of functions. 5, Develop and conduct an annual review process to assess fees and charges. CIVIC CENTER DIVISION PROGRAM REVIEW MARCH 2004 CIVIC CENTER DIVISION PROGRAM REVIEW TABLE OF CONTENTS A. INTRODUCTION ............,.,...,.........,....,..".,.......,.,...",.,...,........'.,.........".... B. EXECUTIVE SUMMARY 1. Intent of Center and full time staffing level...............,........"............ 2, Obstacles to the Center's operation """""""""""""""""""""'""" 3, Capital improvement and equipment items to be considered for improved operation or reduced expense """""""""""""""""" 4, Concession operation """"""""""""""""""""""""""""""""""" 5. Philosophy regarding risk taking in self-promotion activity......."...... 6, Use during slow times """"""""""""""""""""""""""""""""""" C. RECOMMENDATIONS ."""""""""""""""""""""""""""""""""""""'" 0, BACKGROUND MATERIAL ~- 1. Summary of each activity; goal; staff assigned; procedures, processes and steps involved; and budget information ................... 2. Response to review questions """""""""""""""""""""""""""'" 3. Mission statement """""""""""""""""""""""""""""""""""""" A -1 B-1 B-3 8-5 B-7 B - 21 B -23 C -1 D - 1 0 -12 0 - 19 .-.- - INTRODUCTION The program review of the Civic Center Division was completed with the review committee comprised of the following individuals: Gil Spence..........."...""....."..".... Leisure Services Manager Paula Jo Wolfe ..,........................ Civic Center Division Manager Peggy Degnan............................. Events Coordinator John Richardson .................."...., Acting Operations Supervisor Pauline Joyce......................."..... Administrative Services Manager Dawn Lang """"'......................... Budget Officer Cindy Steinhauser "..."..,............. Assistant City Manager Rich RusselL...,..,....".........."....... Building Services Manager At the City Council goal-setting session in August 2003, the City Council asked that a study be done of the operation of the Five Flags Center to see what could be done to hold the line on, or reduce, the property tax support. AU options were to be considered, including private management The review process developed by the City Manager's office was used to guide the review, Committee members are to be commended for the time and effort put forth during this time consuming process. Their questions and suggestions were most helpful during the review. The study of private management of the Center will be done in a separate memorandum, A-1 ~-_._- --~ - --_. -'-"- ---- EXECUTIVE SUMMARY INTENT OF CENTER AND FULL TIME STAFFING LEVEL The original intent of the building was "To be a multi-purpose building that offers something for all ages." In reading the Grand Opening supplement from the Telegraph Herald it is obvious this intent was to be accomplished by the Center being an arts center, convention center, ice arena, sports center, meeting place, entertainment center and a stimulus for development downtown, With the opening of the Grand River Center, the original intent has been modified somewhat. Conferences/conventions, meetings, banquets, and floor shows have moved to the Grand River Center. In 2002, Conventions, Sports and Leisure International (CSL) was hired to analyze potential future users for the Five Flags Center. The Civic Center Advisory Commission and staff used that study when they developed the new Mission Statement, Operating Culture Statement, and Key Result Areas for the Center. This review was conducted keeping the original intent of the building and assuming that private management would operate the same as currently being done, Present full time staff includes: Paula Jo Wolfe.................. Civic Center Manager Peggy Degnan ..............." Events Coordinator vacant .............,................ Operations Supervisor vacant """......".............", Secretary John Snider.."................... Concessions Manager John Richardson ..."......... Bùilding Supervisor Alvy Kennedy.............,...... Utility Worker Robert Richardson """""" Utility Worker Daniel Holtkamp """"""'" Technical Director The concession manager position was added in 1989 when the Center took over the concession operation as a result of no private operation expressing any interest Since the building was opened, six full time positions have been eliminated: one house manager one technical director one secretary one accounting person one patron services manager I marketing person one utility worker B-1 The following things are currently being outsourced: most performance sound equipment and setup performance stage lighting trash pickup . some ticket sales are done through Ticket Master outlets . ticket printing . freon related maintenance specialized or heavy maintenance duties linen for events . off duty police audio visual equipment service B-2 OBSTACLES TO THE CENTER'S OPERA TlON . PARKING: There are several aspects to the parking issue that the Center must deal with: .¡' Perceived lack of parking space for individuals attending events at the Center, There is ample parking within three blocks of the Center in parking ramps but most people view that as too far or do not realize they can park there. .¡' Parking for promoters and event vehicles can limit the types of events the Center can attract An example would be a circus that needs to park vehicles close (next to the Center) to house their animals, This type of parking is very limited and the lack of it makes attracting this type of event very difficult ,/ Meter parking and the resulting parking tickets cause public relations concerns with building users. Four hour meters rather than two hour meters around the block of the building would help address this. If! CONFLICT BETWEEN ICE AND NON-ICE EVENTS: This is a nice problem to have because it means the Center is busy with a variety of events and the demand for booking dates is strong. It does create a difficult situation for the center manager as she tries to meet the needs of all user groups. The ice making process begins the first of September and during this two-week process, no other events can be held in the arena. The ice sheet remains down until mid-March to mid-April depending on whether the Dubuque Thunderbirds make the playoffs and how far they advance. During this seven month period when the ice sheet is down, non-ice events are held on an insulated flooring put over the ice. Having non-ice events in the Center restricts the flexibility of the Dubuque Thunderbirds to schedule home games. Many non-ice events schedule their dates several years in advance causing those dates to be unavailable for the Thunderbirds. Long running non-ice events require the Thunderbirds to travel out of town for practice times, adding cost to their operation. Non-ice events in the Center also restrict the ice time available to other ice users including the Dubuque Youth Hockey Association, Over 30 hockey and public skating, The demand for ice time from all these groups has increased the last few years, B-3 Having the ice sheet in the Center also restricts the non-ice events in the building. Some events do not come to the Center because they do not want to be over the ice or they schedule for a time when ice is out. Events scheduled over ice often complain that it is cold for those seated on the floor. The insulated floor that covers the ice is not very attractive but we now have carpet to layover the floor, if the user group wants to rent it. Approximately $36,000 is spent annually on labor costs to change over the arena from ice to non-ice event and back to ice. This is a very labor intense, time consuming process that is budgeted to be done fifteen times per year and is a non-reimbursable expense, When you consider that the prime time for both ice usage and non-ice events is the same months of the year, and the high scheduling demand from both groups, it is easy to see the difficulty the center manager has meeting all those requests. Staff is to be commended on its ability to work with all groups and equally meet everyone's scheduling needs. TRENDS OF TOURING INDUSTRY: When times are good for performers, they are not on tour because they do not need the money. Scheduling acts for the Center during this time is almost impossible. When times are not good for performers, they go on tour and scheduling them for Five Flags is much easier. SIZE OF THE CENTER LIMITS WHA T CAN BE OFFERED: With a maximum seating capacity of 5,200, we are limited in the types of acts we can schedule. Big name performers cost so much we would have to charge ticket prices two and three times "normal" price. Our building size limits us to secondary market shows where promoters have an opportunity to make a profit with reasonably priced tickets, EXPANDED COMPETITION: Expanded competition is coming locally from the Grand Opera House, Dubuque County Fairgrounds, Diamond Jo, and colleges. As these venues schedule concerts and other events, they not only "take them away" from Five Flags, they compete for the entertainment dollars many people are willing to spend. Our market size limits the number of concerts the area can support, no matter which venue provides them. There is also expanded competition regionally as Cedar Rapids, the Quad Cities, Rockford, Madison, Milwaukee, and La Crosse, all have similar buildings now competing for that entertainment money. B-4 CAPITAL IMPROVEMENT AND EQUIPMENT ITEMS During the review process, capital improvement projects and equipment items that would improve or enhance operation of the Center were identified. This section identifies those items judged to be realistic: CAPITAL IMPROVEMENT PROJECTS: 1. Change bleacher seating (east bleachers) to fold-up seating, making the seats more comfortable and easier to sell. 2. Redecorating the Bijou room. 3. Convert section of warming kitchen into an additional concession stand. 4, Relocate ticket office ,/ remove from interior of the building ,/ streamline box office procedures ,/ makes ticket office usage available during events or when building is closed ,/ eliminates temporary setups now required 5. Expand the energy management system to include the theater and locker rooms. 6. Close section 8 to create more storage space, 7. Expand ice refrigeration system and install dehumidification system to improve ice quality and expand the ice season. 8. Replace arena HVAC system. 9. Better ice insulation (covering). 10. Renovate concession stands and obtain point of purchase registers, 11. Improve ambiance of the promenade and entrances to the building. EQUIPMENT ITEMS: 1. Portable rigging system for the arena. 2. Masking (black curtains) to transform the arena into a theater to bring in shows that are too large to play in the theater. B-5 3, Point of purchase registers for concession stands. 4. Replace and upgrade arena and theater sound systems. 5. Expand computer systemlterminals to increase operation efficiency and to ease the transfer of work orders and event information. 6. Video system for arena and promenade ,/ informational purposes for users and operating video of what is happening in sections of the building B-6 CONCESSION OPERA TION The first ten years the Center was open the concession operation was outsourced to a private individual. When that ten-year contract was up for renewal, no one responded to the request for proposals. At that time the Center hired a concession manager and took over the operation, For a number of years we were able to show a profit from the concession operation to offset tax support for the rest of the operation. In FY1997, the profit margin began to shrink and around FY1999, we began to use tax support for the concession operation, A four-year history of expense and revenue follows; FY2002 FY2003 FY2004 FY2005 ACTUAL ACTUAL BUDGETED PROPOSED Expense $ 144,358 $ 171,718 $ 159,947 $ 173,503 Revenue 110,728 142,796 125,000 144,800 Tax Support $ 33,630 $ 28,922 $ 34,947 $ 28,703 This change has been brought about by the following reasons: Reduction in the type of events that generated high beer sales. Events like the Buddy Holly Dance, Toughman Contest, and concerts aimed at persons over twenty-one years old are no longer held or the number of events reduced. People do not drink as much beer as in the past. This is a good thing for people's health, but reduces our revenue. Expenses, mostly salaries and benefits, have increased sharply the last five years and revenue has not kept pace, . Often times the concession operation is a service to the event where the profit margin is small or even provided at a loss. The following are examples: . The Dubuque Symphony Orchestra likes to have a bar of wine and soft drinks for intermission at their concerts, The staff time taken to set up this bar and to provide the service during the intermission results in little, if any, profit for the Center. . Over the years the Center has received complaints from the Dubuque Youth Hockey Association concerning the concession stand not being open enough during their B-7 -----~- --,--_.- ---,-,--,~ ..". regular ice usage. The stand was not open all the time they were in the building because for much of the time little business was done and we lost money, A few years ago the decision was made to open the stand all the time ice is being used, This provides the needed service for the user group but results in little profit for the Center. Attached is an Invitation to Bid that was developed if it is decided to seek bids. The review committee recommends this Invitation to Bid be sent out, if private management is not pursued, to test and see if anyone is interested. The committee believes that not only would the $28,703 tax support be saved, the private operation may pay to be able to provide the service. B-8 LEISURE SERVICES DEPARTMENT CITY OF DUBUQUE, IOWA INVITATION TO BID DATE CONCESSION OPERATION AT FIVE FLAGS CENTER I. INTRODUCTION The City of Dubuque, Iowa, is soliciting bids from qualified concessionaires to operate the concession operation at the Five Flags Center. II. BUILDING PROFILE The Five Flags Center is a multi-purpose building serving a variety of event types. In FY2003, 651 events were held at the Center with an estimated attendance of 171,300, Types of events would include concerts, hockey games (youth, high school and Dubuque Thunderbirds), basketball, traveling shows and others, For more information on events, contact Civic Center Manager, Paula Jo Wolfe, at (563) 589- 4254, III. SUBMISSION REQUIREMENTS The City of Dubuque reserves the right to reject any and all bids, to select the bid in best interest of the City, and to negotiate changes with any firm. The City of Dubuque is not liable for any cost incurred by any firms related to the submission of this bid or the execution of the agreement or contract The City of Dubuque is an Equal Employment Opportunity Employer. Bid Submission Bid shall be delivered by 5:00 p.m., COT on Friday, address below: , at the Gi/ D, Spence Leisure Services Manager 2200 Bunker Hill Road Dubuque, Iowa 52001-3010 B-9 ~".. ~- Five Flags concession operation page two The bid shall be sealed and shall be clearly labeled "Five Flags Concession Bid," It is anticipated that an agreement for services will be awarded on Each firm assumes full responsibility for delivery and deposit of the completed bid package on or before the deadline. The City of Dubuque is not responsible for any loss or delay with respect to delivery of the bids. Further information may be obtained from Leisure Services Manager Gil Spence by telephone at (563) 589-4263 or by writing to 2200 Bunker Hill Road, Dubuque, Iowa 52001-3010. IV. INFORMATION TO BE INCLUDED To simplify the review process and to obtain the maximum degree of comparabifity, the bid shall include the following information and shall be organized in the manner specified below. Letter of Transmittal Provide a letter of transmittal briefly outlining the firm's understanding of the work, general information regarding the firm and individuals to be involved, and the name, address, telephone number and fax number for the contact person for the bid. Profile of Firm The bid shall include general information about the firm, the firm's area of expertise, and the firm's official name, address, and principal officers. Qualifications The bid shall include the name of the anticipated concession manager, his or her qualifications and experience and the names, qualifications and experience of other key personnel who would be associated with the operation. V. SCOPE OF SERVICES The agreement is described in detail in the proposed Concession Agreement The extent of the agreement includes, but is not limited to: B -10 Five Flags concession operation page three Rights to sell food and beverage items from the concession stands located in the Center. . The agreement shall be for a five-year period, through . Grantee shall be responsible for providing a quality concession service during all events as designed by the civic center manager. Grantee shall furnish all equipment, machines, and supplies to operate the concession stands. Grantee shall maintain liability insurance, product liability insurance, and worker's compensation insurance as designated in the agreement . Bidder shall specify a fee and a percentage of gross sales, The larger of the two figures will be paid to the City in payments as designated by the agreement. . All bids must be made on blanks fumished by the City. B -11 - -,-~_."'" CONCESSION AGREEMENT LEISURE SERVICES DEPARTMENT CITY OF DUBUQUE FIVE FLAGS CENTER PROPOSAL BASE FEE OF DOLLARS OR OF GROSS SALES, WHICHEVER AMOUNT IS GREATER. PERCENT ALTERNATE: SIGNATURE FIRM ADDRESS TELEPHONE 8-12 CONCESSION AGREEMENT FOR FIVE FLAGS CENTER This agreement, made and entered into this - day of , 2004, by and between the City of Dubuque, Iowa, acting through the Civic Center Advisory Commission, hereinafter called the "City", whose address for the purpose of this lease is 405 Main Street, Post Office Box 628, Dubuque, Iowa 52004-0628, and , hereinafter called the "Concessionaire", whose address for the purpose of this agreement is WITNESSETH: WHEREAS, the City is engaged in the operation and maintenance of the public facility called the Five Flags Center and the City desires to engage a competent and qualified concessionaire to operate and manage the concession stand at the facility; and WHEREAS, The Concessionaire is desirous of procuring from the City the privilege to operate and manage the concession stand and is qualified to provide the requisite services associated therewith; and WHEREAS, the public interest and welfare will be served and the Five Flags Center materially enhanced by granting such privilege to a reputable party who will provide certain services to the public patronizing the complex. I.. NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements hereinafter set forth, it is agreed by and between the parties as follows: 1, LENGTH OF AGREEMENT. This agreement for the privilege and obligation to operate the concession rights at the Five Flags Center shall be for the five year period from July 1, 2004 through June 30, 2009. 2, PAYMENTS. Concessionaire shall pay to the City, through the Five Flags Center, the sum of $- per year for each year that this agreement is in effect. Said fee shall be paid in monthly payments due by the 15th of the month, beginning with the second month of operation, 3, FINANCIAL STATEMENTS, Concessionaire shall not later than the 15th of each month provide the City with a financial statement verifying all receipts from the operation of its business. In addition, Concessionaire shall make available to the City all its records regarding the operation of the business when so requested by the City, B - 13 4. LICENSES, Concessionaire shall obtain all licenses, permits, and other documents necessary to operate a food and beverage business, including beer sales, at its sale expense, as required by the laws of the City of Dubuque, State of Iowa, and the United States. 5. TERMINATION. This agreement may be terminated by the Leisure Services Manager upon 24-hours written notice if it is deemed in the best interest of the City and by Concessionaire upon seven (7) days' written notice to the Leisure Services Manager. Upon termination of this agreement, the Concessionaire shall remove all its property and personnel from the Concession stand. It is expressly understood and agreed that this agreement is not a lease or a conveyance of realty, but merely a granting of the privilege to provide certain services for the benefit and convenience of the public, The rights and obligation of the parties under this agreement shall end with the effective day of the termination of this agreement except that the Concessionaire shall be responsible for any damages or losses attributable to his/her acts or those of hislher employees while operating the concession stand. 6, ASSIGNMENT OF AGREEMENT, Concessionaire shall not assign, sell, orin any way transfer the business or this agreement without the prior written consent of the Leisure Services Manager. 7, PRODUCT SALES AND HOURS OF OPERATION, It is understood and agreed that the Concessionaire shall handle a general line of beer, soft drinks, food, et cetera, such as are commonly found available at such places. Concessionaire shall obey all laws and regulations of the City of Dubuque and State of Iowa pertaining to the sales of said products, including dram shop insurance. The Concessionaire shall file a price list prior to July 1 st for such items sold at the concession stand, with the Leisure Services Manager. These prices shall be in effect until the Leisure Services Manager is notified in writing that a price change is requested, In the event that the Concessionaire shall not submit a price list to the Leisure Services Manager prior to July 1 st, the prices of the previous season shall prevail until a new price list is approved. The concession stand shall be open and available to the public during the hours and events as determined by the Civic Center Manager, primarily to coincide with the events scheduled. Closing shall not be later than fifteen minutes after the event is concluded. The Civic Center Manager reserves the right to prohibit beer sales during events requesting no beer sales. The Concessionaire shall enforce the "no carry-in" rule. 8. MACHINERY AND EQUIPMENT, Concessionaire shall provide and maintain all machines and equipment necessary to operate its business at its sole expense. Structural changes to the building pertaining to equipment must be approved in writing by the Civic Center Manager and done at Concessionaire's expense, When said equipment is removed, the building shall be restored to its original condition, at Concessionaire's expense. Storage shall be limited to the designated areas, B -14 9. ELECTRICITY AND WATER. City shall provide electricity and water to concession area for use by Concessionaire at City's sole expense. 10. CONCESSION STAND MAINTENANCE. Concessionaire shall be responsible for all damage done by employees of the Concessionaire, Concessionaire shall not alter the interior or exterior of the concession stands without prior written consent of the Civic Center Manager. 11, SIGN(S). Concessionaire, at hislher sole expense and with approval from the Civic Center Manager, may erect suitable signs to inform the public of the products available for sale, and the prices, No signs will be hung on the outside of the concession stands. 12, HOUSEKEEPING. Concessionaire shall be solely responsible for maintaining the concession business area and keeping the same in a clean and wholesome condition at all times, Concessionaire shall keep all garbage and refuse generated by his/her business neatly contained, and shall place all refuse in the dumpsters provided by the Center, 13, PERSONNEL IN CONCESSION AREA. Only employees of the Concessionaire or authorized personnel shall be permitted in the concession portion of the building. 14, REMOVAL OR ENCUMBRANCE OF CITY PROPERTY. Concessionaire shall not remove or encumber any property or equipment of City located in the concession building; nor shall Concessionaire dispose of or disburse any funds owed to City, 15, RIGHT OF ENTRY. concession area at any time, City shall have the right to enter and examine the 16, INSURANCE, Concessionaire shall provide such insurance as required by the attached insurance schedule, 17, INDEMNIFICATION, The Concessionaire agrees to defend, indemnify and hold harmless the City, its officers, boards, commissions, agents, and employees from and against all claims by any person whatsoever occasioned by the operation of Concessionaire under this Agreement 18, LIABILITY FOR CONCESSIONAIRE'S EQUIPMENT, SUPPLIES, AND OTHER PROPERTY. City shall not be responsible in any way for lost, stolen, or damaged equipment, supplies, or other property of Concessionaire, The Concessionaire shall be solely responsible for all of its equipment and supplies. B -15 "--~._-_. 19, EMPLOYEES. Concessionaire shall supply at its sole expense a sufficient number of employees to adequately serve the public during the hours of operation. Concessionaire's employees shall at all times reflect personal cleanliness. Unkempt and unclean employees will not be tolerated. Employees shall wear distinctive shirts, jackets, or smock and cap whenever working. 20. PERFORMANCE BOND. Concessionaire shall on or before July 1, 2004, execute to the City a bond with good and sufficient security, said bond to be approved by City, in the sum of Fifty Thousand Dollars ($50,000.00) conditioned upon the faithful performance and discharge of the obligations imposed by this agreement from the date thereof and said bond shall remain in force and effect during the life of the agreement. Concessionaire shall pay all premiums chargeable for said bond and shall keep the same in force and effect at all times throughout the term of this agreement and until removal of all its property from the concession area. Said performance bond shall contain a provision that it shall not be terminated or otherwise allowed to expire until thirty (30) days' written notice to that effect is given to the City and the Concessionaire herein. Said bond shall be in a form satisfactory to the City; and a duplicate copy, along with written evidence of payment of the required premium, shall be filed with the City during the term of this agreement 21, TOTAL OR PARTIAL DESTRUCTION OF CONCESSION BUILDING. In the event of fire or other disaster causing partial or total destruction of the concession stands, the City at its option may proceed with rebuilding or repair of the building. During the period of rebuilding, Concessionaire shall have the option of continuing to operate its business from a temporary or mobile concession stand. FOR THE CITY OF DUBUQUE FOR THE CONCESSIONAIRE address phone B-16 INSURANCE SCHEDULE A INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE CITY OF DUBUQUE 1, All policies of insurance required hereunder shall be with an insurer authorized to do business in Iowa, All insurers shall have a rating of A of better in the current A.M. Best Rating Guide. 2, All policies of insurance shall be endorsed to provide a thirty (30) day advance notice of cancellation to the City of Dubuque if cancellation is prior to the expiration date. This endorsement supersedes the standard cancellation statement on the Certificate of Insurance, 3, shall furnish a Certificate of Insurance to the City of Dubuque, Iowa for the coverage required in Paragraph 6 below. Such certificates shall include copies of the following policy endorsements: a) Thirty day notice of cancellation to the City of Dubuque. b) Commercial General Liability policy is primary and non-contributing. c) Commercial General Liability additional insured endorsement d) Governmental Immunity Endorsements. e) Waiver of recovery under workers compensation. 4. Each certificate shall be submitted to the contracting department of the City of Dubuque, 5, Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of this agreement. 6. shall be required to carry the following minimum coveragellimits or greater if required by law or other legal agreement: a) COMMERCIAL GENERAL LIABILITY General Aggregate Limit Products-Completed Operations Aggregate Limit Personal and Advertising Injury Limit Each Occurrence Limit Fire Damage Limit (anyone occurrence) Medical Payments $2,000,000 $1,000,000 $1,000,000 $1,000,000 $ 50,000 $ 5,000 This coverage shall be written on an occurrence, not claims made, form per location, All deviations or exclusions from the standard ISO commercial general liability form CG 0001 or Businessowners form BP 0002 shall be clearly identified. B - 17 Governmental Immunity Endorsement identical or equivalent to form attached. An additional insured endorsement identical or equivalent to ISO Form CG 2026 or CG 2011 and include as additional insureds: 'The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees, and volunteers." b) WORKERS' COMPENSATION & EMPLOYERS LIABILITY Statutory for Coverage A Employers Liability: $100,000 each accident $100,000 each employee-disease $500,000 policy limit-disease Policy shall include an endorsement waiving right of recovery against City of Dubuque, c) UMBRELLA/EXCESS LIABILITY LIQUOR OR DRAM SHOP LIABILITY Coverage to be determined on a case-by-case basis by Finance Director, B -18 POLICY NUMBER COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED- DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name of Person Or Organization: The City of Dubuque, inciuding all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees, and volunteers. (If no entry appears above, informabon required to complete this endorsement will be shown in the Declarations as applicable to this endorsement) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out of your operations or premises owned by or rented to you, CoPVrioht. Insurance Services Office. Inc. 1994 CG20261185 B - 19 CITY OF DUBUQUE, IOWA GOVERNMENTAL IMMUNITIES ENDORSEMENT 1, Nonwaiver of Governmental Immunity, The insurance carrier expressly agrees and states that the purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time. 2. Claims CoveraGe. The insurance carrier further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government Immunity, The City of Dubuque, Iowa shall be responsible for asserting any defense of govemmental immunity, and may do so at any time and shall do so upon the timely written request of the insurance carrier. 4. Non-Denial of CoveraGe, The insurance carrier shall not deny coverage under this policy and the insurance carrier shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa. No Other ChanGe in Policv. The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy, B -20 PHILOSOPHY REGARDING SELF-PROMOTION In order to boost the number of events, attendance and revenue, certain facilities go beyond the normal practice of renting to outside promoters, and engage in promotion and co-promotion of events, Self-promotion means that the facility assumes the role of the promoter, undertaking all costs and risks normally taken by promoters who might engage an attraction and rent the facility, Co-promotion means that the facility enters into an agreement with a promoter under which the facility and the promoter agree to share costs, risks, profits and losses, under some negotiated formula, Normally, promotion and co-promotion involves the assumption of certain risk on the part of the facility, Policies vary from facility to facility, with many reporting either an unwillingness to take risks or a prohibition from doing so. This is often the case with certain publicly owned facilities where managers are prohibited from taking promotional risks, which might result in the loss of public funds, At Five Flags, the self-promotion activity was established to allow the center manager some flexibility to co-promote or self-promote events in the Center. A conservati\ie approach has always been taken when making these decisions and expending these funds, The main focus for these funds has been to promote performances in the theate¡r. These performances are usually put on by local arts groups that need some assistance to reduce the financial risk. The relationships that have been developed have become successful for both the Center and the arts groups, Over the last few years there has been some talk that a more aggressive approach should be taken to self-promote events that could generate greater funds for the Center. A Celebration on Ice was self-promoted this year and ended up losing some money, so there are risks. The money that was lost should be made up in other events that were held, so the City should not lose money in the self-promotion activity at the end of the year. For the Center to take a more aggressive approach to self-promotion, the City Council would need to authorize the Civic Center Manager to risk the loss of public funds to promote events. Most times when an agency representing an artist calls, the Civic Center Manager needs to move quickly to estimate potential costs and revenue and decide to contract the artist. Everyone would need to recognize the risks and be willing to take them. B - 21 Another aspect that needs to be considered as this topic is discussed is the staff time involved to self-promote events, especially major events. With the staff reductions the Center has experienced over the years, there is not a lot of staff time that can be taken to do much more self-promotion events. If a more aggressive approach is taken we would need to evaluate the present staffing level to determine if positions should be changed to allow the center manager to have assistance in this effort. In 2002 the City hired Conventions, Sports and Leisure International (CSL) to conduct an analysis of potential future uses for the Five Flags Center. That study recognized that we host a modest level of promoted spectator events and suggests the primary event focus in future years should include: secondary market shows agent booked events musical productions theater productions specialty events (illusion art, comedy, et cetera) motor sports The study recognizes that the Center would need to co-promote these events to attract a great number of them to Dubuque. Expansion of art programming and the ice season were also mentioned, The CSL Study also states that scheduling for the Center should not result in a loss of popular music and entertainment events due to activities such as open skating, practices, and other low attendee events, The review committee suggests that a discussion be held with the City Manager, City Council, and Center staff to determine if the present approach should be maintained or if a more aggressive approach should be taken. B -22 USE DURING SLOW TIMES The summer months are often considered the slow months of usage at all buildings, This time period is used for maintenance projects with self-promoted and "special deal" events scheduled around the maintenance, This is also a time period when outdoor venues are offering shows and activities. It seems counterproductive to compete with entertainment events like the Diamond Jo, Catfish Festival, Dubuque County Fair, downtown Jazz Festivals and other focal events. Some creative events in other markets we may want to consider include: expand ice season basketball tournaments art programming and events volleyball tournaments art exhibits . Allow five city non-profit groups to rent the facility for only $1,00 plus labor and equipment costs Center staff will continue to look for ways to expand building usage while considering the issues stated above. B - 23 .---..- RECOMMENDATIONS The following is a series of recommendations the review committee would like to make, if management is not privatized: . The capital improvement and equipment items suggested in section three of Executive Summary be further investigated and incorporated into the budget process as funding allows, Invitation to Bid be sent out to outsource the concession operation, Tax asking reduction from this item is estimated at $40,000. If the current Building Supervisor is promoted to the vacant Operations Supervisor position, the building supervisor position be down graded to maintenance worker. Tax asking savings would be $10,118. Naming rights for the Center be sold. To do this, a consultant would be hired and paid a percentage of the naming rights revenue because staff does not have the time and expertise to do this, Since this is such an unknown, no estimate will be made as to how much tax asking reduction there could be. . A more aggressive approach be taken to co-promote and self-promote events, This assumes some financial risk, but could yield financial reward. Further study maximizing use of the building during slow months. . To improve the bottom line, strict enforcement of the no carry-in food and drink policy will be done. Center staff will continue to look for ways to expand building usage while considering the issues stated above. C-1 .._~.~~~.~ ,~, ~ -.-..- . - --.--.--" ~.. BACKGROUND MATERIAL CIVIC CENTER DIVISION SUMMARY PER FY 2005 BUDGET ADMINISTRATION ACTIVITY Goal: To provide the community with a wide variety of both spectator and participation events through professional leadership and administration of the Civic Center Operation. Staff assigned: LEISURE SERVICES MANAGER CIVIC CENTER MANAGER SECRETARY no seasonal or part-time employees Gil Spence Paula Jo Wolfe vacant .15 FTE 1.00 FTE 1,00 FTE Procedures, Processes and Steps Involved: . Supervising, monitoring and analyzing the day-to-day operation ,/ presence of events ,/ hiring and training staff ,/ conducting staff meetings to plan event setup, operation and take-down . Maintaining personal contact with presenters, promoters and agents on national, regional and local levels . Negotiating contracts for all events held at the Center . Planning for the future of the Center ,/ staying abreast of industry trends . Preparing an annual operating budget . Keeping the City Council, City Manager, Civic Center Commission, and Leisure Services Manager informed of Center activities D - 1 ~~~~-~ . ._~.-_.~_..__.._,-". Providing a high profile, positive image of the Civic Center ,/ personal appearances of staff ./ speaking engagements ,/ community involvement ,/ professional marketing efforts Responding to citizens complaints/questions Civic Center summary page two Conducting all office operations and procedures in an efficient and professional manner Budget Information: EXPENSES: full time employees social security I.P.E.R.S, health insurance worker's compensation life insurance office supplies postage and shipping OlE maintenance contracts DP equipment maintenance contracts copying legal notices subscriptions dues travel, city telephone property insurance general liability mise, operating supplies TOTAL ACTIVITY EXPENSE REVENUE: miscellaneous revenue D-2 $ 112,566 8,611 6,473 23,479 243 ~ 900 540 801 5,304 150 350 375 400 2,400 13,029 95 750 --1QQ $ 151,597 $ $ 25394 176,991 250 Civic Center summary page three CONCESSIONS ACTIVITY Goal: To provide a wide variety of food and drink to Civic Center patrons that complements and enhances the various activities taking place in the facility. Staff assigned: CONCESSIONS MANAGER CONCESSIONS WORKER BARTENDER CONCESSION ASSISTANT (45) (31) ( 1) John Snider part-time part-time part-time 1.00 FTE .99 FTE .35 FTE .44 FTE Procedures, Processes and Steps Involved: Provide food and drink to patrons ,/ operate concession stands during events ,/ operate beverage bars for events that want them Maintaining a pleasant atmosphere in stands ,/ hire and train employees ,/ keeping stands clean, with a good appearance ,/ requiring employees to be neat and clean ,/ greeting patrons in a friendly and efficient manner ,/ meeting or exceeding all health requirements . Generate as much profit as possible ,/ schedule appropriate number of employees for each event ,/ select menu items and pricing ,/ maintain accurate accounting and historical records ,/ research and order appropriate products NOTES ,/ quality of products, image and service to the users have a higher priority than making a profit D - 3 _'~h___-_~^-"'",-~ ._---~.._, Civic Center summary page four ,/ the Center does not have the facilities to cater meals for functions Budget Information: EXPENSES: full time employees $ 47,536 part-time employees 29,482 social security 5,892 I.P.E.R.S. 3,698 health insurance 10,920 worker's compensation 787 life insurance ~ $ 98,410 office supplies 100 uniform purchase 300 legal notices 150 dram shop insurance 5,702 mileage 75 general liability 531 mach.lequipment maintenance 800 operating supplies 350 food products 37,000 beer products 16,000 liquor products 1,000 license fees 2,500 miscellaneous services 3,000 67,433 equipment items 7,660 TOTAL ACTIVITY EXPENSE $ 173,503 REVENUE: beer sales $ 46,000 food sales 96,000 liquor sales 1,500 catering 1.300 TOTAL ACTIVITY REVENUE $ 144,800 D-4 Civic Center summary page five BUILDING MAINTENANCE ACTIVITY Goal: To provide safe, sanitary and event-ready facilities that encourage patron attendance by maintaining the building and major equipment in a safe, pleasing and functional condition, Staff assigned: OPERATIONS SUPERVISOR BUILDING SUPERVISOR UTILITY WORKER CREW LEADER LABORER II, housekeeping ( 1) ( 6) vacant John Richardson Alvy Kennedy partctime part-time 1.00FTE 1.00 FTE .50 FTE ,10 FTE ,17 FTE Procedures, Processes and Steps Involved: Provide monitoring and operation of all electrical, mechanical and structural elements of the facility plus maintenance of all rolling stock ,/ development and implementation of a preventative maintenance program ,/ researching and recommending cost efficient means to reduce utility, equipment and labor costs . Reducing loss time accidents by instituting and implementing a loss prevention safety program Providing general cleaning of the building, including the once-a-year "spring cleaning" of all common areas Budget Information: EXPENSES: full time employees part-time employees social security I.P.E.R.S. health insurance worker's compensation life insurance safety equipment $ 117,235 4,983 9,350 6,938 27,301 1,288 234 ------1QQ $ 167,429 D - 5 --_._~-_._~._~ ~ - -.- Civic Center summary page six uniform allowance postage electricity gas telephone property maintenance custodial services HVAC maintenance elevator maintenance property insurance boiler insurance general liability operating supplies mach.lequipment maintenance miscellaneous services 100 100 39,845 9,641 543 10,000 350 12,000 315 12,714 8,454 869 6,076 4,200 416 equipment items TOTAL ACTIVITY EXPENSE $ 105,623 7900 280,952 0 TOTAL ACTIVITY REVENUE D-6 ICE ACTIVITY Civic Center summary page seven Goal: To provide the community with a high quality indoor ice rink for approximately 160 days per year, covering a variety of ice activities, while maintaining non-ice activities as a revenue producer. Staff assigned: EVENTS COORDINATOR UTILITY WORKER CASHIERS ( 4) CREW LEADER ( 2) LABORER II, stage ( 3) LABORER II, housekeeping (28) USHER (11) HOUSE MANAGER ( 7) ZAMBONI DRIVER ( 5) Peggy Degnan Alvy Kennedy part-time part-time part-time part-time part-time part-time part-time .25 FTE ,50 FTE .12 FTE .24 FTE .06 FTE 1.43 FTE .41 FTE .17 FTE ,58 FTE Procedures, Processes and Steps Involved: Providing a high quality indoor ice sheet for approximately 140 days ,/ the ice making process takes ten working days ,/ the ice melting process takes two days ,/ twenty-four Minnesota Junior Hockey League games are budgeted ,/ seven hundred and thirty-five hours of contracted ice usage are expected ,/ forty-five public skating sessions are expected Description of part-time positions ,/ the laborer grade positions would include zamboni operators, T-shirt security, change-over workers, cleaning crew and skate guards ,/ cashiers work public skating and for Saints' games ,/ ushers work Thunderbird games ,/ people that work skate rental are budgeted in the concessions activity ,- "-~_....- D-7 --~---_. ~,--- -- --~ Civic Center review page eight Budgetlnfonnaüon: EXPENSES: full time employees $ 30,793 part-time employees 44,360 part-time reimbursable 9,485 overtime 629 social security 6,523 I.PER.S. 3,760 health insurance 8,190 worker's compensation 1,547 life insurance ~ $ 105,349 uniform allowance 75 sales tax 5,821 postage and shipping 50 electricity 55,180 gas 27,405 HVAC maintenance 1,500 general liability 574 operating supplies 8,000 license fees 600 mach.lequipment maintenance 5,000 104,205 equipment 11,775 TOTAL ACTIVITY EXPENSE $ 221,329 REVENUE: ice skating fees $ 16,639 ice rental fees 74,715 hockey game fees 28,125 rental, ice skates 4,024 ice rental, leased 13.500 TOTAL ACTIVITY REVENUE $ 137,003 D-8 EVENTS ACTIVITY Civic Center review page nine Goal: To provide planning and execution of all Civic Center events through professional consultation, ticket handling and sales, professional technical assistance, building setup and cleanup, event security, ushering and promotion to maximize patron comfort and enjoyment while maintaining a positive public image. Staff assigned: EVENTS COORDINATOR TECHNICAL DIRECTOR UTILITY WORKER CASHIERS ( 7) CREW LEADER ( 8) LABORER II, housekeeping (28) LABORER I, housekeeping (66) HOUSE MANAGER ( 5) USHER I (35) Peggy Degnan Daniel Holtkamp Robert Richardson part-time part-time part-time part-time part-time part-time .75 FTE 1.00 FTE 1.00 FTE ,90 FTE .82 FTE 2.58 FTE .74 FTE .44 FTE 1.19 FTE Procedures, Processes and Steps Involved: Providing professional planning, scheduling and coordination of events ,/ give professional advice in event planning ,/ present event cost estimates ,/ send out work orders to required crews ,/ prepare billings ,/ monitor the preparation for, and execution of events ,/ coordinate all event-related services ,/ hire, train and supervise the part-time usher and security staff Provide professional technical assistance and execution for events ,/ maintain event-related equipment ,/ hire, train and schedule high quality technical and stage crews ,/ provide accurate technical advice on event setup and technical requirements and costs D-9 Civic Center review page ten ,/ provide lighting designs, sound reinforcement and electrical hookups for groups . Maximize patron comfort and enjoyment ,/ monitor fights, HVAC and other mechanical equipment during events ,/ schedule and supervise event setup and cleanup crews ,/ maintain building appearance during events . Provide accurate, consistent and complete ticket service for all events ,/ open ticket office six days a week, 12:00 noon to 5:30 p.m. ,/ provide ticket office service for door sales prior to events ,/ maintain ticket master outlets to insure availability to people in the surrounding areas ,/ continually evaluate ticket office poficies, practices, personnel and procedures Budget Information: EXPENSES: full time employees part-time employees part-time reimbursable overtime social security I.P.E.R.S. health insurance worker's compensation life insurance $130,332 46,836 71,655 1,647 19,161 11,779 30,031 2,578 -1§1 850 300 1,500 0 2,500 8,000 50 300 400 300 8,503 $ 314,280 office suppfies uniform purchase postage and shipping OlE maintenance contracts printing promotion dues transportation travel, city lodging electricity 0 -10 REVENUE: gas refuse telephone general liability hospitality talent fees operating supplies mach.lequip. maintenance payments to other agencies software license expense catering services mach.lequipment rental miscellaneous services financial service fees equipment TOTAL ACTIVITY EXPENSE advertising displays novelty sales event revenue investment earnings ticket surcharge TOTAL ACTIVITY REVENUE TOTAL DIVISION EXPENSE TOTAL DIVISION REVENUE 0-11 ~~-~--~.~._.._~- 6,245 3,800 1,888 2,445 300 30,000 13,500 3,000 236 1,900 1,500 1,500 21,000 750 $ 7,500 6,500 241,700 400 34,500 ~., .--...- Civic Center review page eleven $ 110,367 17,165 441,812 $ 290,600 $ 1,294,587 572.653 $ 721,934 CIVIC CENTER REVIEW COMMITTEE STAFF RESPONSE TO QUESTIONS B. Division should be asked to identify a list of activities it would perform if resources were available, and why it would perform them. . MASKING (BLACK CURTAINS) TO TRANSFORM THE ARENA INTO A THEATER, $25,000 storage okay ,¡ bring in shows that are too large to play in the theater (Broadway type shows) . MARKETING OF THE BUILDING (NOT EVENTS)/IN-HOUSE PROMOTION, NEW LOGO FOR CENTER . CHANGE BLEACHER SEATING TO FOLD-UP SEATING * Positives ,¡ more comfortable seating ,¡ improved appearance ,¡ the two items above make seats easier to sell ,¡ enhance the theater type atmosphere referred to above Negatives ,¡ reduce seating . RELOCATE TICKET OFFICE * ,¡ remove from interior of the building ,¡ streamline box office procedures ,¡ makes the office useable during events ,¡ eliminates temporary setups now required . PORTABLE RIGGING SYSTEM FOR ARENA . THEATER LIGHTING SYSTEM AND RIGGING FOR ARENA, ($300,000) . CONVERT SECTION OF WARMING KITCHEN INTO AN ADDITIONAL CONCESSION STAND . CLOSE SECTION 8 TO CREATE MORE STORAGE SPACE OR MEETING ROOM SPACE . ALLOW MORE RISK TAKING IN SELF-PROMOTING EVENTS 0 -12 LARGE VIDEO SCREEN FOR ARENA (RENT) ..¡ need price . COMPUTERIZED TIME CARD SYSTEM . REPLACE ICE RINK REFRIGERATION SYSTEM! COMPRESSORS! BUILDING MODIFICATIONS TO EXPAND THE ICE SEASON AND TO IMPROVE PRESENT ICE MAKING AND ICE QUALITY * . FIGURE SKATING PROGRAM . EXPAND ENERGY MANAGEMENT SYSTEM TO INCLUDE THEATER AND LOCKER ROOMS . CREATE MORE STORAGE SPACE . REPLACE HVAC SYSTEM * . BETTER ICE INSULATION (COVERING)* . LONG RUNNING THEATER SUMMER SHOW (SELF PROMOTION) . VIDEO SYSTEM FOR ARENA AND PROMENADE* ..¡ informational purposes for users and operating video of what is happening in sections of the building . LIGHTED SIGNAGE ON.OUTSIDE OF BUILDING . MARQUEE FOR THEATER . POINT OF PURCHASE REGISTERS FOR CONCESSION STANDS ($8,000 each) . RENOVATE CONCESSION STANDS * C. The division should be asked what other activities are petformed, or in what different manners they are petformed in other cities. . WE DO NOT CHARGE USERS FOR ITEMS OTHER BUILDINGS DO ..¡ event cleanup ..¡ maintenance during events ..¡ AV, equipment ..¡ electricity used during events ..¡ trash D -13 . WE DO NOT HAVE OUR OWN PARKING . WE DO NOT HAVE A GRILL IN THE CONCESSION STANDS . WE DO NOT HAVE A MARKETING PERSON . OTHERS USE UNION LABOR FOR TECHNICAL SETUP IV, 1 , Are there questions and obstacles unique to this activity? . ICE . TRENDS OF TOURING INDUSTRY (CONCERTS) . MORE ADEQUATE SIGNAGE FOR RAMPS . SIZE OF CENTER LIMITS WHAT CAN BE OFFERED . SIZE OF CONCESSION STANDS . USERS BRING IN THEIR OWN FOOD / DRINK . LACK OF STORAGE SPACE . PHYSICAL APPEARANCE OF THE BUILDING . WEIGHT RESTRICTIONS IN ARENA TO "HANG" EQUIPMENT NEEDED FOR SOME SHOWS . OVERHEAD DOOR ON 5TH STREET IS TOO NARROW . SEATING SETUP IN ARENA IS MOSTLY ON ONE SIDE . NEW MIDDLE SCHOOL THEATER MAY COMPETE FOR SCHOOL EVENTS NOW HELD IN THE THEATER . EXPANDED COMPETITION FROM THE GRAND OPERA HOUSE 2. How could foreseeable trends of demographic or geographic changes in the City impact the activity? . AS POPULATION AGE LEVELS CHANGE, IT IMPACTS TYPES OF EVENTS THAT WILL BE SUCCESSFUL . EMPLOYMENT LEVEL CREATES FINANCIAL IMPACTS ON EVENTS D -14 . POPULATION INCREASE CREATES MORE POTENTIAL USERS 3. Are there other functions which should be performed, or which are more important? . THE ORIGINAL INTENT OF THE BUILDING IS FOR THE CENTER TO BE A MUL TI- PURPOSE BUILDING THAT OFFERS SOMETHING FOR ALL AGES. THIS IS STILL THE INTENT OF THE CENTER AND ALL EVENTS AND ACTIVITIES ARE CONSIDERED TO BE OF EQUAL IMPORTANCE, 4, What mechanisms are there for citizen feedback to department activities? What kind of feedback has been received? What are common complaints and compliments? . NO FORMAL PROCESS IS ESTABLISHED FOR FEEDBACK FEEDBACK IS RECEIVED OVER THE TELEPHONE OR THROUGH THE MAIL COMPLAINTS ,¡ temperature in theater ,¡ lack of parking / parking tickets ,¡ events having to be held over ice (too cold) ,¡ type of seating (bleachers) ,¡ Fifth Street overhead door being too narrow ,¡ limitations (physical and structural) of the building ,¡ ice floor covering ,¡ no dock level entry ,¡ wheelchair seating . COMPLIMENTS ,¡ types of events offered ,¡ many thank yous are received from user groups ,¡ professionalism and cooperative staff 5, Is this program / service a high City priority per City Council goals and priorities, or legal mandates? DOES NOT SEEM TO BE A HIGH PRIORITY AT THIS TIME NOT LEGALLY MANDATED D -15 10. 6. Is this program required by federal, state or local regulations? NO What body has oversight/review authority over work products or processes? OSHA, FLSA, EEOC, Teamsters Union and Civic Center Commission. Special licenses - liquor, beer, food, dance hall, theater and ISCAPIBMI Are common City policies in these areas adequately met? YES Are there other requirements unique to this activity? NO 7. Can we do away with this program? It is possible, if you so choose. Ramifications are obvious. 8, Can the program be outsourced? . YES, OPTIONS INCLUDE: ,; lease entire operation ,; private management ,; sell entire building Are there private sector or other public sector agencies that are providing a similar service? FAIRGROUNDS GRAND OPERA HOUSE HOTELS I MOTELS DIAMOND JO COLLEGES 9. Can certain functions be shared with another department to provide some of the program processes or procedures in a more effective or efficient manner? NO Should the program be shifted internally to another department or division to make it more effective or efficient or because another department has similar functions it is currently providing? NO D - 16 14. 15, 11. Is there updated technology or other techniques that could help to address issues, improve effectiveness and/or efficiency of service provisions? . HAVE OUR OWN WEB SITE . CALLER /D. . MARQUEE FOR THEATER . INFORMATION LINE (TELEPHONE) 12. Is this program in whole or in part a duplication of service provided elsewhere? NO 13. Is the service being provided in a cost effective manner now? YES How do we compare in delivery of the service and staffing levels to cities with comparable programs and/or private enterprise? . SIX FULL TIME STAFF POSITIONS HAVE BEEN ELIMINATED OVER THE YEARS AND THE NUMBER OF EVENTS HELD AND VISITORS HAVE INCREASED . OUR STAFF LEVEL APPEARS TO BE LESS THAN OTHER FACILITIES If others operate more efficiently, are there obstacles to operating as efficiently? . ICE / NON-ICE EVENTS CONFLICT AND IT IS COSTLY TO CHANGE OVER FROM ONE TYPE OF EVENT TO ANOTHER . CONSISTENT LEVEL OF EVENT ACTIVITY . LOCATION AND VISIBILITY OF OFFICE . BUILDING LIMITATIONS Have questions and issues presented by City Council been previously addressed? YES Specifically identify cost reduction measures, including possible personnel reductions, and the ramifications of these reductions. . REPLACE BUILDING SUPERVISOR POSITION WITH A MAINTENANCE WORKER. ELIMINATES SOME PART-TIME HOURS ALSO. D -17 .~~~-----~ _.- .. . FACILITY MANAGEMENT IS ADDRESSED ELSEWHERE AND MAY NOT RESULT IN COST REDUCTIONS THINGS THA TARE CURRENTL Y BEING OUTSOURCED . most performance sound equipment and setup . pipe and drapes for conventions . catering . performance stage lighting . trash pickup . some ticket sales are done through outlets . ticket printing . freon related maintenance . some maintenance duties - specialized or heavy linen for events . off duty police * ITEMS ALREADY BUDGETED IN C,I.P. D - 18 Dubuque Five Flags Center Mission Statement We provide an economic stimulus and diverse life enriching experiences for the people of Dubuque and the tri-state area, in a safe and well-maintained facility and [with] support services for event hosts and their guests, Operating Culture Statement We are a knowledgeable, skilled, and flexible team of service-oriented professionals who help create an enjoyable experience for users and guests of the Five Flags Center. Key Result Areas (KRAs) We will focus on the following key result areas to assure we achieve or mission while demonstrating the attributes of our desired operating culture. . Physícal Plant Management It is essentfãl that we have a safe, well-maintained and accessible facility that provide'S'; a pleasantand functional environment for events. We believe: >- The condition and appearance of the building is a reflection of our staff and our city. >- Safety is everybody's responsibility. >- Changes in the facility must reflect changes in our role in the community, . Accommodate a variety of events. . Respect historical significance. Critical Objectives: 1, Maintain compliance with all codes - Building, Fire, Safety, ADA, Health, OSHA, etc. 2. Facility maintenance process in place, including annual "spring cleaning." 3, Develop and maintain a preventative maintenance program. 4. Maintain a five-year capital-improvement program, D - 19 ........~.. ,,'c. . Events Management Our internal processes must consistently result in an efficient and positive experience for our users from the point of first contact through final settlement. We Believe: >- Delivering on commitments builds organizational integrity. >- Event management is a seamless team driven process >- The process can always be improved. >- Process improvement is a team responsibility >- Team members are individually and collectively responsible for execution of the process, >- Every interaction with a user is an opportunity to foster the relationship. >- Open dialog leads to mutual understanding. Critical Objectives: 1. Develop and maintain a building policy manual. 2. Develop and maintain a comprehensive event process flow document 3. Develop and maintain a User-friendly contract development/insurance process. 4, Develop and implement an "Event Evaluation" tool for users. 5. Develop and implement a "Post Event" documentation process. 6, Schedule and conduct pre and post season hockey team building session, Marketing and Public Relations Positive visibility among event planners and promoters along with a reputation for delivering value and service will assure we attract and retain a solid base of users. We believe: >- >- );> Reputation is an early selection criterion for users. Visibility and awareness are key components of marketing. The image of The Five Flags Center is inseparable from and contributes to the image of the events we host. An active presence in the "events" industry helps build visibility and awareness, >- D -20 Critical Objectives: 1. Develop and maintain an "Event Industry" marketing strategy (IAAM). . Manager attends IAAM meetingslconference 2. Develop and maintain a "Facility Awareness" (in the industry) strategy. 3. Develop and maintain a list of local and regional media contacts, 4, Develop and implement an "Events Awareness" strategy. Customer Service It is incumbent upon all our staff to proactively manage the experiences of our guests, We believe: » Customer service is an attitude - a habit of thinking and behaving, » Customer service is measured in terms of perceptions, » Perceptions are derived from experiences. » Every interaction with a customer is an opportunity to create a positive perception. » Our success depends on user's success. Critical Objectives: 1. Develop and implement customer service training program for key employees. 2, Develop and implement a customer service feedback tool. Fiscal Responsibility We have an obligation to prudently balance our mission to serve the diverse needs of the community with the financial support from the citizens of Dubuque, We believe: » The citizen's expect and deserve value for their investment in The Five Flags Center. » Diverse life-enriching experiences are an investment in the community's quality of life. » Users and customers are willing to pay for value. » Value is determined by perceptions in the market place. D-21 ,~ Critical Objectives: 1. Meet all budget guidelines set by City CounciL 2. Review and revise performance measures of our budget document 3. Calculate and track "economic impact" of events. 4. Review staffing levels for different types of functions. 5. Develop and conduct an annual review process to assess fees and charges. D -22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . I . . . . . . I . I I . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . II I . . . . I . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . I . . . . I . . . . . I . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . I I I I I . . . . . . . . . . . . . It It . . . . .. . . . . . þ þ . . . . . . . . . . . . . . t . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . þ . . . . þ þ . . . . . . . . . . . I . I . . . . . . . . . . . It It . . .. May 3, 2004 coÎF.ss . FACILITY MANAGEMENT, INC. Pack Plaza Building, Suite 200, 6th and Duff, P,O, Box 625, Ames, Iowa 50010 Phone, (515) 232-5151 Fax (515) 663-2022 April 27, 2004 The Honorable Mayor Terry M. Duggan MembeÏ-s of the City Council City of Dubuque City Hall 50 West 13& Dubuque, IA 52001 Mayor Duggan and Members of the Council: On behalf of Compass Facility Management, Inc., I would like to thank you for the opportunity to be considered for the management of the Five Flags Civic Center. Based on the discussion that took place at the City Council Work Session April 19, we have tailored our presentation to answer six key questions. A printout of the presentation we will make at your May 3 meeting follows this letter. Whv private manaeement? Five Flags is at a crossroads in its history. With conventions, meetings, and consumer shows moving to the Grand River Center, Five Flags must be repositioned in the marketplace. Functions such as programming, ticketing, event productions, marketing and sales, concessions, and mercha,ndising will be key to achieving a successful repositioning for Five Flags. These functions are not traditionally City functions. To be successful, Five Flags will have to perform more like a business to maximize its development of hockey and skating, amateur sports, entertainment, performing arts, and tourism The City can acquire the advantages of private management without giving up control. The Five Flags Commission would continue to determine the mission for Five Flags, set policies, ratify budgets and approve programming. The management company would be accountable to the Commission in all matters. What will become of incumbent emplovees? Compass will work with the City to establish a transition period during which Five Flags employees would have the opportunity to get comfortable with Compass, while at the same tim<¡ surveying their options to transfer to other City departments. The transition period coUld last up to 24 months. It will be our hope and intention to transfer all incumbent City employees to Compass employment. In doing so, we would work to meet or exceed their existing compensation levels. www.compassmgmt.com Screen 19 of our presentation compares Five Flags gross revenues and staff expenses to three Compass managed facilities. As a percentage of revenue, full time salaries for Five Flags are much higher than in comparable Compass facilities. Therefore, we will work with the City to manage staffing expenses without placing an undue burden on incumbent staff How will tenants and. user &OUPS be treated? At Compass we pride ourselves on the supportive relationships we build with our prime tenants and user groups. At Five Flags, the relationships with users becomes very personal to me. I was the first Five Flags manager, having opened both the theatre and the arena. I was part of the original organizing group for the Fighting Saints, predecessors to the Thunèlerbirds. I was a classmate of Doug Donald, director of Fly By Night Productions, at the University ofIowa, and I attended his wedding on the Five Flags Theatre stage when he married Lenore Howard. I personally set the stage for the Dubuque Symphony Orchestra for several years. And I nurtured the relationship with Wahlert High School with my then next door neighbor and Wahlert Choral Director Ron Gunnare. In short, I am personally invested in the success of Five Flags tenants and user groups because they have been a part of my history, and I of theirs, for over 25 years. Compass will work with these user groups to support them and make them as successful as possible. How will pro&aJD.JJÛne be improved? Compass will bring more events, and more profitable events, to Five Flags. We will start with a Strategic Visioning process that incorporates basic market research and work sessions with connnunities leaders that will determine a new course of direction for Five Flags. We will create an Enterprise Fund with sponsor and corporate partners providing seed money to "risk" on events for Five Flags. A full service marketing and sales department will be created, includiug an in-house ad agency. With these elements in place, Compass will work to enhance Five Flags programming in several specific areas: . Concerts and Popular Entertainment: Through Compass talent buyer Jim Baker we will work with managers, agents, and promoters to leverage Compass relationships to create more events for Five Flags . Compass will create new connnunity events that have proven successful in other markets. Examples include: Ribfest; Festival of Trees; Emerging Music Festival; Health Fairs. . Summer Tourist Theatre: Building on Compass experience with summer theatre in tourist destinations like Mackinaw City and Muskegon, Michigan, Compass will present small, light musical comedies in the Five Flags Theatre ITom Memorial Day to Labor Day, adding to the critical mass of attractions for summer visitors to Dubuque. 2 . Recreational Ice Programs: Compass will implement the skating and hockey programs we successfully introduced at the Cedar Rapids Ice Arena to maximize ice programming, particularly during daytime and off-peak usage periods. . School-time perfonning arts programming: Compass will capitalize on having three historic theatres on eastern Iowa (paramount in Cedar Rapids, Adler and Davenport, along with Five Flags) to conduct combined grants writing, fund raising, programming and promotions for children's and family programming, emphasizing master classes, work shops, and hands-on learning opportunities. How will the bottom line be affected? We project that we can reduce the annual Five Flags operating deficit by $255,000 within two to three years. (See screen 21). We propose to accomplish this through spec ifi c cost reductions and revenue enhancements. Even in year one, we will more than make up for our management :fee. Whv Compass over other options? Managing arenas and theatre in mid-size markets like Dubuque is very different Jyom managing facilities in large cities. Compass is the only national management company devoted exclusively to meeting the challenges of managing public venues in smaller markets. Compass is Iowa based, with headquarters in Ames - just three hours drive ftom Dubuque. Compass knows the eastern Iowa market like no other management company. At this critical time in the life of Five Flags, you need more than sound management You need leadership and devotion to purpose. I had the privilege of working with Wayne Norman and the Five Flags Executive Committee. I attended every Building Committee meeting chaired by Jacquie Merritt. As president of Compass, it would be my honor to continue the dream of the founders of the Five Flags Center, and take it to new heights. Other companies can service the needs of Five Flags. No company will nourish and enrich the Five Flags tradition like Compass. It has been our distinct privilege to participate in the process for selecting a private management company for Five Flags. We look forward to knowing your decision -g;y' &; St_L~ President Compass Facility Management, Inc. 3 " May 3, 2004 Questions we will address: ~ Why private management? ~ What will become of incumbent employees? ~ How will tenants and user groups be treated? ~ How will programming be improved? ~ How will the bottom line be affecte ~ Why Compass over other options? );> Consumer shows, conventions, banquets, and meetings are now going to Grand River Center );> Need to reposition in the marketplace . Hockey I Skating . Amateur Sports . Entertainment . Performing Arts . Tourism Why Private Management for Five Five Flaas at a Crossroads );> Concessions and Merchandising Why Private Management for Fiv To be more successful Five Fla s needs act and look more like a sports - entertainment - tourism business );> Programming );> Ticketing );> Event Production );> Marketing and Sales These functions are not traditionally City functions Assurances for City ~ Powers reserved for City under private management . Determine mission . Setting of policy . Budget approval - Set rates - Approve staffing levels . Programming approval ~ City receives . Expertise and professional support . Investment . Total accountability - Monthly reports - Ongoing access to all records Why Private Management for Fiv~ Compass Facility ement "Compass was created to serve . the unique management needs of edium and smaller market public assembly facilities. We have assembled a knowledgeable, enthusiastic, and creative team of respected industry professionals to do just that." Why Compass? COMPASS GETS RESULTS , » Revenue streams » Budget management » Programming » Exclusively dedicated to mid-market facilities » Iowa based Why Compass? Our Mission "It is the mission of Compass Facility Management, Inc. and its subsidiaries to maximize the presentation of successful events in client facilities for the cultural, recreational, educational, and economic benefit of the communities we serve." ~ Our Client: City of Dubuque Why Compass? Commitment to Outstanding Service to all Stakeholders ~ Our Users: Performers, Promoters, Event Planners, Loca Organizations, Prime Tenants ~ Our Guests: The people who attend our activities and events 10 ~ Thunderbirds Why Compass? First hand knowledge and appreciation for Five Flags tenants ~ Dubuque Symphony ~ Fly-By-Night Productions ~ Wahlert High School 11 ~ Opened Five Flags Theatre and Five Flags Center Why Compass? First hand knowledae and appreciation for Five Flaas history ~ Worked for many years with the Executive Committee headed by Wayne Norman ~ Worked from project beginning Building Committee headed by Jacqueline Merritt ~ Worked with very first Five Flags Commission 12 ~ Support and develop staff capabilities Why Compass? ~ Build on proud history of Five Flags with knowledge of Eastern Iowa market ~ Embrace the new tourism ~ Reposition Five Flags in the sports - entertainment - tourism marketplace ~ Nurture and support tenant organizations 13 What We Can Do for The Five Flags Center Provide Qualitv ManaQement Services: Strategic Visioning Marketing and Sales Operations Finance and Administration 14 What We Can Do for The Five Flags Center Provide Qualitv ManaQement Services: Programming/Event Booking: ~ Prime tenants, popular entertainment, and family programming ~ Community events and festivals "Compass Promotions": ~ Event creation, packaging, and recruitment . James Baker. Consolidated Entertainment Group, Inc. ~ Sponsor development 15 What We Can Do for The Five Flags Center Provide Quality Manaaement Services: Food and Beverage: ~ Evaluate menu pricing and portions and make modifications to improve profitability ~ Work with vendors and sponsors t renovate stands ~ Utilize volunteer groups for stands ~ Contain costs to maximize profits ~ Create new promotions for increased sales ~ Explore feasibility of lobby coffee I espresso bar 16 What We Can Do for The Five Flags Center Provide Qualitv Manaaement Services: Five Flags Theatre: ~ Join with Compass historic theatre network ~ Historic uniforms for FOH staff ~ Summer programming for tourist trade . Co-op presentations with Compass summer season at Center Stage Theatre in Mackinaw City, Michigan (3 shows - 26 weeks) 17 What We Can Do for The Five Flags Center Provide Qualitv ManaQement Services: Create New Recreational Ice Programs: > Add figure skating and "Learn to Skate" instruction programs > Promote "win - win" Cooperative with Thunderbirds Hockey 18 ._----~--_._---~~ '--. What We Can Do for The Five Flags Center Comparison 2003 financials: Center MWCC Mankatò $541 $2,227 $204 $384 38% 17% $776 $2,486 ($241) ($259) 19 What We Can Do for The Five Flags Center Comparison 2003 Finane!.!!!..;. 19 What We Can Do for The Five Flags Center Model Oraanizational Chart: P.T. Administrativ. SUpport _M\.¡nt.~~ ' "!>nversion ~r., Volunt..... I P.T."!>nc...lon. P.T. Staff FOH P.T. Staff Volunt..... SecurIty Lif. Safety 20 What We Can Do for The Five Flags Center Goals for Projected Financial Improvement: 21 Benefits of a Partnership with Compass ~ Increased Revenues ~ More Events ~ Networking of Professional Resources ~ A Better Bottom Line ~ Leadership and Dedication Based on 28 years History with Five Flags Review of Issues: p ~ Why private management? ~ What will become of incumbent employees? ~ How will tenants and user groups be treated? ~ How will programming be improved? ~ How will the bottom line be affecte ~ Why Compass over other options? 22 23 ~ -- "---=~~~o,=~~.._-. --..