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Legislation #: 020299 Introduction Date: 3/14/2002
Type: Resolution Effective Date: 4/18/2002
Sponsor: COUNCILMEMBER XBARNES
Title: Directing the City Manager to include the American Royal Complex and the Convention Center Complex in the next round of KC-GO reviews and to select by May 1, 2002, an industry specialist consultant to assess the current operations and management of the Convention and Entertainment Centers facilities, as well as to assist the City in the development of a Request for Proposals, according to the guidelines set forth in this Resolution, for the management of any one or more of such facilities, and to report back to the City Council by July 24, 2002.

Legislation History
DateMinutesDescription
3/20/2002

Hold On Agenda

3/14/2002

Referred Finance and Audit Committee

4/3/2002

Hold On Agenda

4/10/2002

Hold On Agenda

4/17/2002

Immediate Adoption as a Committee Substitute

4/18/2002

Adopted as Substituted


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COMMITTEE SUBSTITUTE FOR RESOLUTION NO. 020299

 

Directing the City Manager to include the American Royal Complex and the Convention Center Complex in the next round of KC-GO reviews and to select by May 1, 2002, an industry specialist consultant to assess the current operations and management of the Convention and Entertainment Centers facilities, as well as to assist the City in the development of a Request for Proposals, according to the guidelines set forth in this Resolution, for the management of any one or more of such facilities, and to report back to the City Council by July 24, 2002.

 

WHEREAS, the Mayor and City Council recognize that Kansas Citys American Royal Complex (including Kemper Arena) and Convention Center Complex can be among the Citys most important attractions and sources of direct and indirect revenues; and

 

WHEREAS, the Mayor and City Council desire to pursue changes in how City services are provided with a goal of increasing organizational efficiencies, securing maximum cost effectiveness, and improving accountability and service to the public; and

 

WHEREAS, the Mayor and City Council firmly believe that the City should always endeavor to find the most efficient and effective ways of improving convention, arena, and assembly services for users and visitors and to improve the direct and indirect revenue generating capacity of these facilities; and

 

WHEREAS, the Mayor and City Council are committed to the essentiality of the City continually seeking to improve its ability to attract, retain, and properly market and service conventions, concerts, sporting and cultural events, family shows, and trade shows in an increasingly competitive market; and

 

WHEREAS, the American Royal and Convention Complex facilities function both independently and interdependently in providing services to citizens and visitors; and

 

WHEREAS, various users and stakeholders have different expectations of how these facilities should operate and serve them and the community; and

 

WHEREAS, the Mayor, 11 City Council Members, Union Leaders, and all City management signed the Kansas City, Missouri Competitiveness and Efficiency Charter; and

 

WHEREAS, the Kansas City, Missouri Competitiveness and Efficiency Charter resulted in the Kansas City Government Optimization Program (KC-GO), a broad-based, inclusive, labor/management initiative to identify and adopt the best business practices of the private and public sectors, identify and implement operating improvements, and develop competitive business plans to improve the efficiency and competitiveness of City operations; and

 

WHEREAS, the KC-GO process provides for the use of an industry specialist consultant; employee work groups; the input, advice, participation, and assistance from users and other stakeholders; the involvement and assistance of civic interests and professional groups, and


evaluation by the Competitive Review Committee in assessing the current performance of operations and recommending a set of solutions and a course of action to improve the operational and financial performance, efficiency, effectiveness, and competitiveness of city activities; and

 

WHEREAS, the Competitiveness and Efficiency Charter provides the Mayor and City Council with the right to pursue alternative service delivery methods in the absence of a credible Competitive Business Plan or the failure to meet the performance targets and efficiencies stated in the Competitive Business Plan; and

 

WHEREAS, private management has proven to be valuable in some other communities in improving the fiscal performance of arena, convention, and assembly facilities, and in maximizing revenues and minimizing operational costs while simultaneously maintaining customer satisfaction; and

 

WHEREAS, the MOU with AFSCME Local 500 provides that the City will not contract out work performed by union employees without advance written notice to the Union; and

 

WHEREAS, the MOU with AFSCME Local 500 provides union employees the right to respond to any Request for Proposals for contracting out services presently provided by the union members; and

 

WHEREAS, the contract between Kansas City, Missouri, and the American Royal Association provides for the right of first refusal in the event the City proposes the transfer of control of the American Royal facilities or Parking Lot A; and

 

WHEREAS, the City is involved in ongoing discussions with representatives of the proposed downtown performing arts center regarding management and booking of events in the Music Hall and the new performing arts center; and

 

WHEREAS, the Greater Kansas City Sports Commission has convened a committee of civic representatives to make recommendations regarding the construction of an arena in downtown Kansas City; and

 

WHEREAS, it is recognized that a clearly defined mission statement for the facilities and specific objectives being sought from potential facility operators are of great importance to a successful Request for Proposals; and

 

WHEREAS, on September 4, 1997, the City Council adopted Resolution No. 971230 setting forth a mission statement for the Convention and Entertainment Centers Department in which the mission of the facilities was to serve as economic generators for downtown and the community; and

 

WHEREAS, the KC-GO process, the assessment of the facilities' current operations vis-a-vis similar facilities in comparable markets, as well as a quantitative and qualitative analysis of the advantages and disadvantages of various management structures, will assist the staff and City Council in evaluating our facilities' current mission statement and its relevance to the manner in which the City Council wishes the facilities to be operated and in defining the specific performance objectives desired of potential operators today and into the future; and

 

WHEREAS, comparative facility performance, financial, and market data and analysis are essential to determining if an RFP is necessary, which facilities should be included in an RFP, and in developing such an RFP and to assist employees in responding to such an RFP; NOW, THEREFORE,

 

BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the City Manager will include the American Royal Complex and the Convention Center Complex in the next round of KC-GO reviews.

 

Section 2. That an industry specialist consultant will be selected and be under contract by May 1 to assist employees, tenants, and other stakeholders in assessing facility operating and marketing results against comparable facilities, complexes, and markets; identifying performance gaps and other issues; developing solutions to resolve those gaps and issues; evaluating the advantages and disadvantages of public and private management of such facilities and complexes; and recommending the appropriate management structure for the existing facilities and the parameters under which the facilities and complexes should be managed.

 

Section 3. That the involvement of employee groups and other interested parties in the KC-GO process for the Convention and Entertainment Center facilities shall begin immediately.

 

Section 4. That the industry specialist consultant issue a report to the City Council regarding the operations, management, and associated issues of the Convention and Entertainment Centers facilities by July 24, 2002

 

Section 5. That the proposal from the industry specialist consultant contain an option to assist the City with the development of an RFP to seek proposals for the management of any one or more of the Convention and Entertainment Center facilities if the Council chooses to pursue that course based on the results of the first phase of this project

 

Section 6. That the City Manager will include representation from labor groups, facility tenants, department management and staff, representatives of key business partners and the local hospitality industry, the Convention and Visitors Bureau, civic interests, professional groups, and other parties in identifying issues and developing recommendations.

 

Section 7. That pursuant to the MOU with AFSCME Local 500, should the City select to issue an RFP for the management of any one or more of these facilities, current employees of the Convention and Entertainment Centers Department are encouraged to partner and submit a proposal and take part in a competitive contract process.

Section 8. That all such RFPs must contain a statement setting forth the proposers intentions and strategies regarding the retention, classification, compensation, and benefits (including sick leave, vacation, and pensions) of current employees of the Convention and Entertainment Centers Department.

 

Section 9. That among other parameters, any plan or proposal submitted for improving the efficiency, effectiveness, and competitiveness of the facilities should include approaches to advise existing and future tenants regarding efficient venue selection processes in order to maximize the use of available facilities.

 

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