Loading...
Five Flags Civic Ctr Privatizat D~ ~~~ MEMORANDUM April 28, 2004 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Five Flags Privatization After the City Council work session on April 19th where the Five Flags Civic Center review was presented and private management discussed, I met with SMG and Compass Facility Management. Assistant City Manager Cindy Steinhauser, Budget Officer Dawn lang, Personnel Manager Randy Peck, and leisure Services Manager Gil Spence joined me for these sessions. Both firms are well qualified to provide private management services for the Five Flags Center. After careful review of the written material and the presentations made, my recommendation is Compass Facility Management. This recommendation should not reflect negatively on the skills and abilities of SMG. The following are the strengths Compass brings to Dubuque: . Steve Peters, President of the company, will be our contact person and the Five Flags staff will be able to contact him any time. The responsiveness and effectiveness of a smaller organization can sometimes be more effective than a larger organization. . Compass focuses its business on medium and smaller market public assembly facilities and has presented a successful track record in that work. . Compass has a Midwest historic theater network that reflects the needs of Dubuque's historic Five Flags Theater. . Compass recognizes the importance of a profitable concession operation and has offered to provide funding, or raise the necessary funds, to immediately renovate the three concession stands. . When discussing how to grow the business at Five Flags, Compass outlined how they would utilize the theater and improve the ice programming. . Compass projects to reduce the property tax support for the Center by enough the first year to offset their fee and by the third year expects the reduction to be $255,000. In the important matter of transition of current City employees to the new management company, I would ask approval to negotiate a transition plan into the Management Contract with Compass, which would begin July 1, 2004. The City currently has two vacancies in the full-time positions at Five Flags. The transition plan would consist of the following: The Five Flags Civic Center Manager Paula Wolfe and all part-time employees would become employees of Compass effective October 1, 2004. Other management employees, who include Events Coordinator Peggy Degnan, Building Supervisor John Richardson, Concession Manager John Snider and Technical Director Dan Holtkamp, would become employees of Compass effective January 1, 2005. All other positions would become employees of Compass effective January 1, 2006. Any newly-hired employees would immediately become Compass employees. This schedule allows the City the greatest ability to hold Compass accountable for operation of the facility. It also allows any employees who would like to remain City employees, time to seek other opportunities. This would be my recommendation for a transition plan whether the City Council selects Compass or SMG. I respectfully recommend that the Mayor and City Council direct staff to negotiate a 5-year Management Agreement with Compass Facility Management to manage the Five Flags Center beginning July 1, 2004. (fkJJ ~ AJL Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Gil Spence, leisure Services Manger Steve Peters, President, Compass Joe Romano, Regional Vice President - Mid-West, SMG Dave Baker, President, Teamsters Union Paula Wolfe, Civic Center Manager Peggy Degnan, Events Coordinator John Snider, Concessions Manager John Richardson, Building Supervisor Alvy Kennedy, Utility Worker Robert Richardson, Utility Worker Daniel Holtkamp, Technical Director CITY OF DUBUQUE, IOWA MEMORANDUM April 27, 2004 TO: Michael C. Van Milligen, City Manager \~ FROM: Gil D. Spence, leisure Services Managet!Jì SUBJECT: Study to Privatize Management of the Five Flags Center INTRODUCTION The purpose of this memorandum is to provide a summary of the process taken to conduct the review of the Civic Center Division operation, including private management DISCUSSION 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 The committee met several times to review the present operation of the Center and made several suggestions to reduce the property tax support. The committee then began the study of private management for the Center. A "Request for Proposals" was developed 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 After the committee reviewed the three proposals, the committee decided interviews were needed. Mike Brannon and Rod Bakke from the Civic Center Advisory Commission volunteered to represent the Commission on these interviews. All three firms were interviewed on February 23rd. The committee then met to discuss its selection and decided on SMG. Commission members discussed the issue at length on March 15th and decided more time was needed to review and study the issue. On April 12th, the Commission met to determine its recommendation to the City Council. It was decided by unanimous vote to recommend to the City Council that private management be pursued for the Five Flags Center. Further, on a 3 - 2 vote the Commission voted to recommend Compass Facility Management provide the private management services. Both the Committee and Commission presented their recommendations to the City Council at a work session on April 19th. GDS:et CITY OF DUBUQUE, IOWA MEMORANDUM April 23, 2004 FROM: Michael C. Van Milligen City Manager. . Randy Peck rQ Personnel Manager TO: SUBJECT: IPERS Coverage for Civic Center Employees I visited with an IPERS representative following the April 19, 2004 work session and she confirmed that the Civic Center employees would have to remain under the direction and control of the City of Dubuque to continue coverage under IPERS. If the Civic Center employees become employees of a private management company, IPERS coverage would be discontinued. If you have any questions, please feel free to call. RP:bf