OFFICE FOR EXCELLENCE in
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GOVERNMENT
Findings and Proposals
for
Process and Organizational Improvements
for
ARIZONA COLISEUM AND
EXPOSITION CENTER
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OFFICE FOR EXCELLENCE IN GOVERNMENT
ARIZONA COLISEUM AND EXPOSITION CENTER
TABLE OF CONTENTS
EXECUTIVE SUMMARY
PROPOSALS
1. MISSION AND STRATEGY
2. ORGANIZATIONAL STRUCTURE
3. PERFORMANCE SHARING PLAN t !
4. PERFORMANCE MONITORING
4.1 MANAGEMENT SYSTEMS
4.2 CAPACITY UTILIZATION
4.3 INFORMATION MANAGEMENT
5. REVENUE OPPORTUNITIES
5.1 PREFERENTIAL PARKING RATES
5.2 RENTAL OF PARKING LOTS
5.3 PARKING REVENUE LIMITATIONS AT THE ARIZONA
NATIONAL LIVESTOCK SHOW
5.4 FAIR COMMERCIAL EXHIBITORS AND
CONCESSIONAIRES
5.5 CASH MANAGEMENT
5.6 PRESS BOX SEATS
5.7 SUBPPORT OF THE ARIZONA NATIONAL
LIVESTOCK SHOW
6. COST CONTROL OPPORTUNITIES
6.1 FAIR ENTRIES COST CONTROL
6.2 PREMIUM BOOK COST RECOVERY
7. SERVICE IMPROVEMENT OPPORTUNITIES
7.1 CHILD CARE SERVICES
7.2 CREDIT CARD PURCHASES BY TELEPHONE
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TABLE OF CONTENTS
( Continued)
EXHIBITS
i. Letter from ACEC
1. ACEC- OEG Partnership Agreement
2. Summary of Benefits
3. Summary of Proposed Organization Savings
4. List of Interviews
5. Executive Division, Present Organizational Structure
6. Finance Division, Present Organizational Structure
7. Booking Division, Present Organizational Structure
8. Administration Division, Present Organizational Structure
9. Operations Division, Present Or. ganizational Structure
10. Security/ Parking Departments, Present Organizational Structure
11 . Physical Plant - Coliseum, Present Organizational Structure
12. Physical Plant - Grounds, Present Organizational Structure
13. Entries, Present Organizational Structure
14. Board, Director, Division Heads & Depts., Revised Organizational
Structure
15. Finance Division, Revised Organizational Structure
16. Coliseum Division, Revised Organizational Structure
17. Administration Division, Revised Organizational Structure
18. Operations Division, Revised Organizational Structure
19. Operations Division, Revised Organizational Structure
20. Security and Parking Department, Revised Organizational Structure
21. Physical Plant - Coliseum, Revised Organizational Structure
22. Physical Plant - Grounds, Revised Organizational Structure
23. Entry Department, Revised Organizational Structure
24. 1990 Capacity Utilization
25. 1990 Capacity Utilization ( Continued)
26. 1991 Capacity Utilization
27. 1991 Capacity Utilization ( Continued)
28. 1992 Capacity Utilization
29. 1992 Capacity Utilization ( Continued)
30. 1st Half 1993 Capacity Utilization
31 . Entries Dept Statistics 1982- 1992
32. Entries Dept Total Exhibitors by Category 1982- 1992
33. Entries Dept Total Exhibits Judged by Category 1982- 1992
34. Maricopa County Population with Total and Paid Fair Attendance
35. Maricopa County Population versus Fair Attendance Graph
36. Entries Dept Advertising and Printing Costs 1984- 1991
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OFFICE FOR EXCELLENCE IN GOVERNMENT
EXECUTIVE SUMMARY
Arizona Coliseum and Exposition Center
The Office for Excellence in Government ( OEG) has completed a diagnostic review of
the Arizona Coliseum and Exposition Center ( ACEC). This summary presents a
synopsis of the findings and recommendations developed by OEG in partnership with
the ACEC and describes the approach used in conducting the review. The review was
conducted from September 1992 to January 1993. No analysis was conducted .
during the period of the State Fair in 1992. Joint drafting of all recommendations, as
outlined in the Partnership Agreement, commenced in late May due to the ACEC's
request and concluded in early August 1993.
The Coliseum and Fairgrounds can be a continuing source of revenue to the State.
A principal consideration in developing the proposals was to support an aggressive
increase in the utilization of the Coliseum and Grounds over the current levels. In
addition, identified benefits ranging from $ 1,271,900 to $ 1,410,100 for the ACEC
based on cost reductions and revenue opportunities were identified. The summary of
proposed benefits are presented in Exhibit 2.
The summary of savings associated with the organizational changes is presented in
Exhibit 3: Summary of Proposed Organization Savings. The proposals for
organizational savings should not be interpreted as a reflection of the performance of
the individuals in the current organization whose job functions and responsibilities are
no longer necessary to meet the challenges facing the organization.
OBJECTIVES AND MANAGEMENT CONCERNS
The overall objective of the diagnostic review was to evaluate the ACEC using various
business analysis and Total Quality Management ( TOM) techniques to identify
improvements in the delivery of the agency's services. In this context, four ACEC
Management concerns conveyed during a partnership meeting were addressed:
1. Maintenance of the " enterprise" nature of the ACEC
2. Preservation of the long term job security of employees
3. Provision for rewarding all employees for superior performance
4. Response to legislative requests for contributions to the General Fund.
APPROACH
The approach to this review focused on taking an integrated view of the organization.
As a whole, and for each of the areas reviewed, the following elements were studied:
the mission and strategic focus; the process delivery methodology; the process
technology; methods for using and managing information; performance
measurements; quality and" service issues and measurements; organizational
structures; and the logistics and physical assets used by the organization to deliver
services.
The study began with the analysis of · shelf data · provided by the ACEC " to become
" familiar with the mission, size, structure and responsibilities of the major areas of the
i: lgency. Next, extensive interviews were conducted at all levels of the organization,
3electing those individuals best situated to help identify areas for improvement.
During the course of the review, a total " of 77 interviews were conducted with agency
personnel, customers and competitors. The list of persons interviewed is presented
in Exhibit 4: List of Interviews. As a result of information obtained in the interviews,
process flows were documented and agency documents and records were analyzed.
The diagnostic team also toured the ACEC facilities and visited the State Fair.
The review was conducted through analytical rather than comparative techniques to
provide the ACEC with an opportunity to identify levels of improvement. These
improvements support the ACEC Management's efforts to satisfy the expectations of
the Legislature while regaining a competitive position in the local entertainment
market.
SUMMARY OF FINDINGS AND PROPOSALS
To date, local customers ( i. e event promoters) of the Coliseum facility appear to have
been satisfied with the facilities and service levels provided by the agency. In
addition, they expressed optimism about the prospects for the ACEC to fulfill its
statutory mandate and retain a viable share of the local entertainment market.
However, the ACEC appears to be at a critical juncture, caught between the
Legislature's rising expectations of financial contributions to the state's general fund
and a significant decrease in revenues related to the loss of the Phoenix Suns
basketball franchise and other events to a newly opened venue. The ACEC's audited
financial statements for FY 1992 show the first operating loss in over 10 years.
To capitalize on its opportunities, the ACEC needs to develop and implement an
aggressive plan. The proposals contained in this report were developed to assist the
ACEC, as an on- going state agency, in formulating such a plan. The proposals are
grouped into the following categories: 1) Mission and Strategy, 2) Organizational
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Structure, 3) Performance Sharing Plan, 4) Performance Monitoring, 5) Revenue
Opportunities, 6) Cost control, and 7) Service Improvement Opportunities.
The proposals related to Mission and Strategy are for the ACEC to formalize its role
as a contributor to the State's General Fund with the understanding that limits will be
placed on additional requests; champion an Agency Performance Sharing Plan
supported by a Performance Monitoring System; and · urgently implement an
aggressive business plan to counter the loss of non- Fair revenues.
The proposal related to Organizational Structure primarily includes changes in the labor
intensive efforts of the ACEC -- Coliseum and Grounds. These efforts will enable the
ACEC to more effectively control labor costs as it refocuses strategically for the
future. All incumbents, whose permanent positions are eliminated, will be allowed the
opportunity to participate in the statewide re- deployment process.
Regarding the Agency Performance Sharing Plan, it is proposed that the plan be based
on the agency's cash profits; have a fixed minimum contribution ( e. g. percent of
assets) or a variable contribution ( e. g. percent of remaining profits) to the State's
General Fund; and provide an opportunity for all agency employees to receive a share
of the remaining profits based on achieving specific objectives established in a
Performance Monitoring System.
The ACEe should establish a formal and comprehensive Performance Monitoring
System based on teams in all key functional areas selecting performance measures
and objectives; developing action plans to achieve the objectives; and establishing an
information management system to collect information and report monthly on
performance versus objectives. Regarding objectives, increasing the non- Fair capacity
utilization of the facilities should receive high priority.
The proposals related to Revenue Opportunities include implementing a preferential
parking fee system; increasing the fixed parking lot rental rates; reducing the current
level of financial support to the Arizona National Livestock Show ( ANLS); collecting
parking fees during the ANLS; capitalizing on the marketplace demands for Fair
commercial exhibitor and concessionaire space; modifying cash management practices
to increase returns; and using guest press box seats for marketing purposes.
The proposals related to Cost Control Opportunities focus on reducing the Fair Entries
Department costs or increasing revenues and making their publications self funding.
The proposals related to Service Improvement Opportunities focus on introducing child
care services during events and accepting credit card purchases over the telephone.
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GENERAL OBSERVATIONS
The proposals are primarily based on the situation as it existed when the interviews
and analyses were conducted. In addition, a formal strategy or business plan from the
ACEC was not available at the time of the review, though the document was under
development but had not been approved by the Board of Directors. As a result, some
of the proposals needed to be reformulated during the joint drafting stage due to
changes in the environment and management direction since January 1993.
The diagnostic effort was greatly assisted by the cooperation of the ACEC employees · ,
and it should be noted that they exhibited true dedication and competence in this
endeavor.
IMPLEMENTATION
Implementation is the critical step in the process of achieving change. With the
exception of the Performance Sharing Plan which depends on Legislative action, all
of the proposals can be implemented within one year and, in fact, many of the
recommendations have already been implemented since the recommendations were
first shared with the ACEC in January 1993.
ACKNOWLEDGEMENTS
The Office for Excellence in Government would like to thank the Board of Directors,
the Executive Director of the Arizona Coliseum and Exposition Center and the entire
staff for their cooperation, participation, suggestions and support during this study.
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Exhi bit
Mailing Address: p. o. Box 6728 Phoenix, AZ 85005- 6728
location Address: 1826 West McDowell Road FAX ( 602) 495- 1302 ( 602) 252- 6771
GARY D. MONTGOMERY, Executive Director RAY McAULEY, Deputy Director.
August 11, 1993
Mr. Tim Boncoskey
Director of the Office for Excellence in Government
1700 W. Washington, 3rd Floor
Phoenix, Arizona 85007
Dear Mr. Boncoskey:
Upon receiving the request that our agency participate in Governor
Symington's program to make government more efficient, we were reluctant to
become a part of the project. We are not, as you are aware, a large agency and
we were faced with the loss of our second largest event and the emergence of a
new competitor for the valley's entertainment activities. We didn't feel that
we could afford the time and effort as we felt that we could better apply our
energies to the pursuit of other activities that would offset the changes we
faced in our business atmosphere.
Fortunately, the Board agreed to invest time and effort into this project
and the results have been very beneficial. With the assistance of a member of
the consulting firm hired by the state and a state employee assigned to review
our agency we and our entire upper and middle management staff were able to
identify areas of cost reductions and revenue streams and those business
directions which will help us meet the needs of today and the future.
We would like to thank you for the professional way in which you led us
through the preparation of the final report and for allowing us the opportunity
to have our views reflected in the final document. Although we may not have been
in total agreement as to the recommendations, we would like to acknowledge that
our involvement in this worthwhile effort has shown us the way to operate on a
higher level of sophistication and competitiveness than that which we previously
had been able to achieve ..
Again, we wish to express our appreciation to Governor Symington and you
for your interest and efforts in our agency. The people of the State of Arizona
will benefit from our collective ~ fforts.
Sincerely,
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P~/// J
GARY D. MON MERY
cc: Mary Huerstel
Steve Shadle
Tony Astorga
Yolanda Kizer
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EXHIBIJ 1: ACEC - OEG PARTNERSHIP AGREEMENT
MISSION STATEMENT
An honest and open relationship.
and service quality by
of patrons, vendors and
improve work
expectations
Enhance job satisfaction
Recognize excellence
Evaluate and
exceeding the
participants.
Prompt and open resolution of differences through the
problem escala tion process,' in order to finish diagnostic
review by December 31, 1992.
Explore methods of recognizing excellence of performance.
Cooperate fully without jeopardizing the success and
mission of the partncrin9 participants.
Jointly draft all recommendations including differing
opiniolls.
Initiate improvements
ositive manner during
Commit to delivering the highest quality service at the
lowest appropriate cost on a continuing basis.
Our team, corisisting of the Arizona Veterans · Memorial
Coliseum, Arizona State Fairgrounds and Project Slim is con~ itted
to an accurate review process designed to:
In fulfillment of the following goals, we will achieve this in
an open and cooperative environment.
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~~~- "~ Mailing Address: P. O. Box 6728 Phoenix, AZ 85005- 6728
_ ~,_. II. I __ Loc_ at_ io_ n_ A_ d_ d_ r_ es_ s_:_' 8_ 2_ 6_ W_.~_. s_ t M_ C_ D_ ow_ el_ 1R_ o_ a_ d_ F_ AX_(_ 60_ 2_)_ 49_ 5_-_' 3_ 0_ 2_( 6_ 0_ 2)_ 25_ 2,_ 6_ 77__' _....
~ GARY D. MONTGOMERY, Executive Director RAY McAULEY, Deputy Director
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Pioneer in Performance Sharing
EXHIBIT 2: SUMMARY OF BENEFITS
Enhanced status with Legislature
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38,500
50,000
28,800
$ 93,240 to $ 186,480
11,200
30,000 to 75,000
80,700
31,000
4,600
129,800
795,200
$ 1,293,040 to $ 1,431,280
More participative management
Stronger marketing and booking organization
Financial rewards for all ACEC employees
TOTAL BENEFITS
Savings\ Revenue Increases
Child Care Services
Fair Entries
Premium Book Cost Recovery
Preferential Parking Rates
Rental of Parking Lots
Parking Revenue Limitations at ANLS
Fair Commercial Exhibitors and
Concessionaires
Cash Management
Press Box Seats
Support of the ANLS
IV. Organization
II. Cost Control Opportunities
III. Service Improvement Opportunities
V. Other Benefits
I. Revenue Opportunities
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EXHIBIT 3: SUMMARY OF PROPOSED ORGANIZATION SAVINGS ••
DIVISIONS SAVINGS ••
ADMINISTRATIVE • Consolidated communications supervisor and • administrative secretary position $ 19,604 • BOOKING • Secretary 24,871 • Box office clerk 18,188 • FINANCIAL • Payables clerk 21,726 • Buyers assistant 19,499 • OPERATIONS • Custodial worker 18,241 • Electrician 28,960 • Equipment operator 28,069
• Equipment service worker 32,105
• Grounds labor supervisor 27,230
• Labor crew supervisor 28,069
Three labors 63,240 • Painter 28,776 • Supplies clerk 17,926 ••
SUBTOTAL PERMANENT REDUCTIONS $ 376,504 • Fifteen full- time temporaries at an avg rate • of $ 5.00 plus .84 fringes 177,840 ••
TOTAL NET SAVINGS $ 554,344 ••
LUMP SUM COST REDUCTION\ REVENUE INCREASES •• Accounting $ 7,907 • Security 25,000 • Parking 21,530 • Purchasing/ Personnel 6,100 • Communications 6,600 • Entries 13,971 • •••••• SUBTOTAL LCOUGBUoosprohMxleiuserOPaenrifutdnSfiinmsgcUgeMMMMaaCianinOntetaSengnTaeanRmncEceeeDntUCTIONS\ REVENUE INCREASES $ 2142011053190,,,,,, 0499300603621 8 00 5 8 • TOTAL ORGANIZATIONAL SAVINGS\ REVENUE INCREASES $ 795,244 •••
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EXHIBIT 4: LIST OF INTERVIEWS
PERSON INTERVIEWED TIlLE DATEAND TIME
1. RAYMOND W. MCAULEY
2. GARY SPENCE
3. DON B. WEST
4. GARY D. MONTGOMERY
5. WILLIAM O. ROLLER
6. JAMES A. THARP
7. GEORGAWESTMOREIAND
8. SHERRY PEW
..... 9. KEITII A, ROHRMAN
o 10. JAMES E. WILLIAMS
11. MERCY S. GONZALEZ
12. DENNIS R. GANOE
13. HELEN M. KENNELLY
14. J. A. MULLENEAUX
' 15. WILLIAM H. MCVAY
16. WILLIAM ROLLER, JR.
17. WILLIAM L. KLOPFER
18. GORDON ROTII
19. PATRICK O. KORNEGAY
20. SUSAN BAKER
21. WANELL SKINNER
22. AMY K IBARRA
23. PAMELA K STOCKSDALE
24. KENNETII MICHAEL DAVIS
25. DENNIS D. WEIGELT
26. DAVID PORTILLO
27. OLIVE G. MORTENSEN
28. J. DAVID RICH
Comptroller - Deputy Director September 3, 1992 lQ: OO a. m. - 4: 45 p. m
Assistant Executive Director - Operations September 4, 1992 10: 00 a. m. - 2: 45 p. m.
Director of Midway Management
Coliseum Manager September 8, 1992 10: 00 a. m. - 12: 00 p. m.
Assistant Executive Director and 12: 45 p. m._- 2: QOp. m.
Executive Director September 9, 1~~ 1}: OOa. m. - 2: 4~. m.
Assistant Director of Operations September 10, J99~ J: 00 a. m. - 12: 00 p. m.
Chief of Security September 10, 1992): 001'- l! l. - 4:_~. m.
Executive StaffAssistant September 14, 19? 2~: 00 a~ IIl' - ll:~ O~. m.
Director of Fair Entries · September 15, 19929: 00 a. m. - 11: 00 a. m.
Assistant Chief of Securi! y ( Captain) September 15, 1992 11: 00 a. m. - 1: 15 p. m.
Assistant Chief of Security ( Captain) September 15, 1992 1: 45 p. m. - 4: 00 p. m.
Secretary I - OfficeManager_ September 16, 1992 9: 00 a. m. - 10: 45 a. m.
Coliseum Event Control Officer I ( Sargeant) September 16, 199211: 00 a. m. - 12: 30 p. m.
Administrative Assistant III - OfficeManager_ September 16, 1992 1: 30 p. m. - 3: 30 p. m.
~ l1ipment Mechanic II September 16, 1992 9: 00 a. m. - 11: 00 a. m.
Equipment Services Assistant Septe~ ber 16,1992 l1:() O a. m.- J: QQ. p. m.
Equipment Services Assistant Septembe! J6L1992 1: 30 p. m. - 3.=-~. m.
Ph~ cal Plant Supervisor III September 17, 19928: 45 a. m. - 10: 45 a. m.
Ph~ cal Plant Supervisor II _ Septe. mber 17, 199211: 00 a. m. - 1: 00 p. m.
Ph~ cal Plant Supervisor II SepteDllJer 17,19921: 35 p. m.- 4: 00 p. m.
Director of Marketing and Advertisement September 22, 1992 9: 00 a. m. - 11: 00 a. m.
Assistant Coliseum Manager September 22,199211: 00 a. m.-. 1: 05 p. m.
Box Office Manager Septelll!> er) 2, 1992 1: 45 p. m. - 3: 45 p. m.
Personnel Director September 23, 19929: 00 a. m. - 11: 00 a. m.
Electrician September 23, 1992 11: 00 a. m. - 1: 00 p. m.
Director of Accounting September 2.1,. 1992 1: 30 p. m. - 4: 00 p. m.
Legislative Liaison September 24,1992 9: 00 a. m. - 10: 35 a. m.
Administrative Assistant III September 24, 19~ 2 1l: 15. i'_. m. -): 00 p. m.
Assistant Chief Counsel September 24,) 992 1:..~ 0 p. m.- 2: 45 p. m.
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EXHIBIT 4: LISTOF INTERVIEWS
PERSON INTERVIEWED TITLE DATEAND TIME
29. MILDRED LONG Communicat! ons Supervisor September 25,19929: 00 a. m. - 11: 00 a. m.
30. PATRICIA D. DUPUIS Executive Secretary II - 1J()() king Coordinator September 28,19929: 15 a. m. - .11: 30 a. m.
31. ROBERT T. COSTELLO State Fire Marshal September 28,12923: 00 p. m. - 5: 15 p. m.
32. EDWARD C. CUNNINGHAM State Fire Marshal September 28, 1~ 2 3: 00 p. m. - 5: 15 p. m.
33. DAVID COLLINS Director Maricopa CountyFair September 29, 19928: 45 a. m. - 10: 30 a. m.
34. GERALDINE CRAIG Show Director Arizona National Livestock Show September 29, 1992 11: 00 a. m. - 12: 30 p. m.
35. BILL BACHAND Owner TooUes Country and Broker September 30, 1992 11: 00 a. m. - 12: 15 p. m.
36. JERRY COLANGELO General Manager Phoenix SUDS October 5, 1992 10: 00 a. m. - 11: 00 a. m.
37. ROBERT K. MACHEN General Manager America West Arena October 5,199210: 00 a. m. - 11: 00 a. m.
38. RICHARD H. DOZER VP Chief Operating Officer Phoenix Suns October 5, 1992 10: 00 a. m. - 11: 00 a. m.
39. DAN ZELISKO Evening Star Productions, Inc. October 13,199l1: 30 p. m. - 3: 30 p. m.
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40. ADAM KELLER General Manager, Phoenix Roadrunners Hockey Club October 13, 1~ 2~: 00 p. m. - 5: 00 p. m.
41. ALLEN FLEXER Chief Operating Officer Blockbuster Desert Sky Pavillion October 15, 19921: 00 p. m. - 4: 15 p. m.
42. JANE L. CIARK General Manager Blockbuster Desert Sky Pavillion October 15,) 9922: 00 p. m. - 4: 15 p. m.
43. DEBRA D. MORTENSEN Administrative Secretary III November 20, 1992 10: 00 a. m. - 11: 30 p. m.
44. MODENAWATSON BuyerAssistant November 20,199210: 00 a. m. - 11: 30 p. m.
45. RAYMOND W. MCAULEY Comp! roller - l! 9> uty Director November ~ O, 1992 12: 45 a. m. - 3: 15 p. m.
46. MARJORIE B. FIASCHETIl Buyer II No~ ember 20, 19923: 15 a. m. - 4: 00 p. m.
' 47. PAMELA K. STOCKSDALE Personnel Director November 2. l, 19929: 10 a. m. - 9: 45 a. m.
48. DENNIS D. WEIGELT Director ofAccounting November2. l, 19929: 45 a. m. - 10: 45 a. m.
49. GEORGA WESTMORELAND Executive StaffAssistant November 2. l, 1992 11: 00 a. m. - 11: 30 a. m.
50. GARY SPENCE Assistant Executive Director - Operations November 2. l, 1992 1: 30 a. m. - 3: 15 p. m.
Director of Midway Management
51. GORDON ROTH Physical Plant Supervisor II November 24,19929: 00 a. m. - 10: 30 a. m.
52. RICHARD J. PETRENKA Deputy Director State Treasurer November 24, 1992 10: 00 a. m. - 10: 45 a. m.
53. NEAL E. HELM Deputy Director State Treasurer November 24, 1992 10: 00 a. m. - 10: 45 a. m.
54. HELEN M. KENNELLY Administrative Assistant III - Office Manager November 25, 1992 9: 00 a. m. - 10: 00 a. m.
55. ALFRED M. MARQUEZ Painter November 25, 1992 10: 00 a. m. - 11: 00 a. m.
56. AMY K. IBARRA Box Office Manager November, 25, 1992 11: 00 a. m. - 12: 10 p. m.
57. JAMES A. THARP Chief of Security November 25, 1992 2: 40 p. m. - 4: 00 p. m.
58. DENNIS D. WEIGELT Director of Accounting November 30, 1992 1: 30 p. m. - 4: 30 p. m.
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EXHIBIT 4: LIST OF INTERVIEWS
PERSON INTERVIEWED
59. RAYMOND W. MCAULEY
60. WILLIAM L. KLOPFER
61. GORDON ROTH
62. ROY E. HENDERSON
63. ROBERTL. EATON
64. PATRICKO. KORNEGAY
65. NEAL C. HERL
66. KEITH A. ROHRMAN
67. RAYMOND W. MCAULEY
68. GARY D. MONTGOMERY
69. WANELL SKINNER
70. ANN HAR1LEY
71. STEVE EISNER
72. KENT ROSS
73. WILLIAM WELLS
74. AMY L. WOOD
75. JAMES E. WILLIAMS
76. MARTINL. DICKEY
77. SHERRY PEW
TITLE DATEAND TIME
Comptroller - Deputy Director December 1, 1992 10: 00 a. m. - 12: 00 p. m.
Physical Plant Supervisor III December 2, 1992 8: 00 a. m. - 9: 30 a. m.
Physical Plant Supervisor II Decembel' 2, 1992 I: QO~ m ..... · 1: 30 p. m.
Welder December 2, 19921: 30 p. m. - 2: 00 p. m.
Plumber December 2, 1992 2: 00 p. m. - 4: 00 p. m.
Physical Plant Supervisor II December. 7, 19929: 00 a. m. - 10: 00 a. m.
Electrician December 7, 1992 10: 00 a. m. - 11: 00 a. m.
Assistant Chief of Security_ tc: aPtain) December 7, 19929: 55 a. m. - 11: 00 a. m:.
Comptroller -_ peputy Director I? ecember 7, 1992 11: 00 a. m. - 12: 20 p. m.
Executive Director December 8, 19929: 30 a. m. - 11: 00 a. m.
Assistant Coliseum Manager December8, 1992 11: 00 a. m. - 12: 30 p. m.
Executive Secretary I December 8, 1992 2: 00 p. m. - 3: 40 p. m.
Boxing Promoter December 9, 19929: 05 a. m. - 10: 55 a. m.
Physical Plant Supervisor I December 9, 1992 11: 05 a. m. - 1: 30 p. m.
Storekeeper I DeceDlber 10, 1992 11: 00 a. m. - 1: 00 p. m.
Ticket Director - Parking December 10, 1992 8: 50 a. m. - 11: 05 a. m.
Assistant Chief of Security ( Captain) December 10, 1992 11: 10 a. m. - 11: 35 a. m.
Director of Marketing and Advertisement December 10, 19922: 00 p. m. - 4: 05 p. m.
Director of Fair Entries December 14, 19929: 00 a. m. - 11: 15 a. m.
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
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1. MISSION AND STRATEGY
Current situation:
The ACEC's statutory mission consists primarily of putting on a State Fair and
other public interest events while generating sufficient revenues to cover
expenses. For the past 10 years ( 1982- 1992), the ACEC management has
demonstrated a consistent capacity not only to meet, but to exceed, its
requirement to cover expenses.
This capacity to generate excess revenues and build a surplus of funds has
placed the agency, in the eyes of the Legislature, in a position to make
contributions, from time to time, to the state's general fund. The Legislature
has already requested contributions on two occasions, in 1989 and 1992, for
a total of $ 3 million from the ACEC's General Fund. As of November 1992, the
ACEC had approximately $ 6 million in its General Fund.
Recently, the ability of the agency to sustain its revenue surplus has been
adversely affected by the departure of the Phoenix Suns basketball franchise
and other events to a newly opened arena. The Suns left in mid 1991 and for
FY 1992 the ACEC registered its first operating loss in1 0 years.
While the long term impact of new venues on the local entertainment market
will be unclear for another one to two years, in the short term these sites will
benefit from a " honeymoon" effect due to newness. However, the three major
local promoters of country music, rock and boxing events and the operator of
a large outdoor venue have indicated that they believe there is room for all
current entertainment venues in Phoenix and that the Coliseum is very
competitive. They identified no major physical or service weaknesses at the
ACEC.
During this review copies of the agency's written strategy and/ or business plan
to provide a strategic context for this analysis was requested. However, no
formal strategy or business plan was available at the time. Since this review
ended in January, a strategy and business plan has been developed and the
ACEC has incorporated the results of this review into those plans. The results
of some of the ACEC's business plan can be seen in section 2 in this report.
13
There appears to be continuing interest in the issue of whether the ACEC
should be privatized. Discussions related to private management of the
Coliseum ( leaving the Fair and grounds under state management) have taken
place with interested parties. As of the conclusion of this review, these
discussions have ceased due to the parties' failure to agree on a specific
performance guarantee linked to a potential Coliseum management contract.
Impact:
The ACEC risk$ not being able to fulfill the contribution expectations of the
Legislature, the reward expectations of its employees ' and the business
performance expectations of the Governor's Office.
Unplanned legislative requests for contributions may continue to disrupt capital
project planning.
Lack of strategic planning and focus could result in a costly misalignment of the
ACEC's activities, resources and structures with the changing requirements of
the local entertainment market.
Privatization, as a means of generating revenues for the State General Fund, is
likely to remain an issue.
Proposals:
Position the ACEC to deal aggressively with the forces of change by taking the
following actions: '
Formalize the ACEC's role as a contributor to the State's General Fund
by revising the agency's legislative mandate.
Obtain formal agreement to limit additional requests for the fiscal year
as long as the State's Minimum Return for that year is contributed.
Champion an Agency Performance Sharing Plan to define contributions
to the State's General Fund and financial rewards for all employees who
have contributed to the achievement of specific performance objectives
as defined in a formal Performance Monitoring System. Detailed findings
and proposals are presented in section 3: " Agency Performance Sharing
Plan."
14
•••••
•••
•••
••••
•••••••••
••
••
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••
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••••
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••••
••••••••
••
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••
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•••••
••
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••••••••
•••••
••••
••• •
Urgently develop and implement, with extended employee participation,
an aggressive business strategy and business plan to maximize the use
of, and return on, all of the ACEC's assets ( e. g. Coliseum, fairgrounds,
investments), and ensure its continuation as an on- going concern.
Develop and implement a formal Performance Monitoring System to
provide accurate and timely feedback on results versus objectives and to
support recognition of achievement by sharing in financial rewards as
defined in the Performance Sharing Plan. Our detailed findings and
proposals are presented in section 3: " Performance Monitoring."
The OEG believes that these proposals address the four " main concerns
conveyed to us during our partnership meeting with the ACEC:
1. Maintenance of the " enterprise" nature of the ACEC
2. Preservation of the long term job security of employees
3. Provision for rewarding all employees for superior performance
4. Response to legislative requests for contributions to the General
Fund
15
•••••••••
••••
•••
•••••
••
•••••
••••••
•••••••
•••••••
•••••• •
2. ORGANIZATIONAL STRUCTURE
Current situation:
The ACEC's current structure is comprised of four divisions reporting to an
Executive Director. The four divisions are as follows:
1. Finance Division, headed by the Deputy Director
2. Booking Division, headed by the Coliseum Manager
3. Administration Division, headed by the Executive Staff Assistant
4. Operations Division, headed by the Operations and Midway
Manager.
The principal functions and responsibilities of the divisions are as follows:
1. . Finance Division:
Accounting
Purchasing
Personnel
Legislative Liaison
Fair Ticket Sales.
2. Booking Division ( Coliseum and Grounds):
Booking
Event Coordination
Marketing and Advertising
Programs and Novelties
Box Office
Sponsorships.
3. Administration Division:
Communications
Secretarial
Fair Concessionaires and Commercial Exhibitors
Fair Credentials.
17
4. Operations Division ( Coliseum and Grounds):
Maintenance
Event Setup
Custodial
Security
Parking
Safety
Fair Midway Management
Fair Entries.
Charts of the present organization alignment of the ACEC are reflected In
Exhibits 5- 23. The different types of positions ( e. g. permanent, part time) are
distinguished by different symbols identified in a legend in each exhibit.
The ACEC has 102 authorized permanent positions ( excluding the five Board
Members) of which 67 are occupied and 35 are vacant. Of the 67 occupied
positions, eight are uncovered positions.
Of the 67 occupied positions, the Finance Division accounts for nine, the
Booking Division for nine, the Administration Division for four, the Operations
Division 44 and the Executive Director.
The agency supplements its manpower needs with temporary status
employees, the majority of whom are hired during the period of the annual
State Fair.
Impact:
The OEG initially focused on recommending to the ACEC a revised organization
structure. However, since the review was completed the ACEC Board has
taken a policy position to reduce expenditures by eliminating positions for the
long term. The ACEe initiated these reductions and most have taken place
since the OEG site visits were completed in 1992.
Proposals:
Reduce the Personal Service and Employee Related Expenses of the ACEe in
labor intensive operations which are no longer needed to meet future
requirements. The reduction affects 16 permanent positions for an
approximate savings of $ 370,000 and 15 temporary positions for an
approximate savings of $ 170,000. In addition, lump sum operating cost
savings\ revenue increase goals have been implemented in most functional areas
18
•••••••••
•••••••••
•••
•••
••
••••
••
••••••••••
••••••••••••
•
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•••
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••
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••• ••
to save $ 240,000 annually. More details are included in Exhibit 3.
It is important to note that personnel reductions should not be interpreted as
a reflection of the performance of the individuals in. the current organization
whose job functions and responsibilities are no longer necessary to meet the
challenges facing the organization. All incumbents, whose permanent positions
are eliminated, will be allowed the opportunity to participate in the statewide
re- deployment process.
Benefits:
The proposal will enable the ACEC to more effectively control labor costs as it
refocuses strategically for the future.
Management comments:
The ACEC Board seeks to avoid future net operating losses and to continue to
provide completely self- supporting services to the citizens of Arizona. The selfsupporting
nature of the ACEC is indeed rare in government. To compensate
for the loss in revenue, the Board has reduced expenses. Although these
reductions have taken place since Project SLIM's site visits, and are in the spirit
of SLIM, they do not reflect the implementation of original recommendations.
19
· v
::: J
ACEC
EXHIBIT 5: EXECUTIVE DIVISION
PRESENT ORGANIZATIONAL STRUCTURE
ACEC BOARD
( 51
EXECUTIVE
DlRECT( Jl
LEGAL ATTORNEY GEHEl
OlJ/ SEL POSITICH
PAID BY ACEC
I I I I
IlEPIIlY DlllECTlJI A5SISTANT EXECUTIVE EXEOITlVE STAFf ASSISTANT EXECUTIVE
DlRECT1JlICOLlSEIJl ASSISTANT DIRECTlJI
FINANCE DIYISICH IWlAGER
AIIllIMISTRATIIII DIVISICH lJ'ERATICHS DIVISIlJI
IIOJ( IIIl DIVISIIII
• ..~..••...............................
D
D o
C
LEGEIIl
~ STAFf
PART TIlE
( 4t tnJlSl1EEJ()
PART TIlE « 4t tnJlSl1EEJ()
FAIR
(~ j} i; T~ M~~)
• •••
Fi~ FJm~ I~
< JlGANIZATIONAL STRUCTUlfl
- ACCllMTIIIl
- I'IJlCHASIIIl
- PEIISOIlEL
- LE61SLATIVE LIAISlJI
- FAIR TItxfT SALES
( SEf EXHIBIT C.
IIOJ( ING DIVISIIII
< JlGANIZATIONAL STRUCTUlI!)
- IIOJ( IIIl
- EVENT ClJR) INATICH
- NARl(£ TIIIl & ADVERTISIIIl
- _ & NOVELTIES
- B< II( CFFICE
- SPCIl5lJI5HIPS
( SI!! EXHIBIT O.
AIIllIMISTRATIIII
OIVISICH < JlGANIZATIONAL
STRUCTUlfl
- cotUlICATlCHS
- SElIlETAltIAL
- FAIR ClJICESSIOlS &
COtHERCIAL EXHIBITlIlS
- FAIR CRBJEIITIALS
( SEf EXHIBIT f- h
tftRATICHS DIVISIIII
< JlGANllATIDNAL STRUClUIIES)
- NAINTBWlCE
- EVENT SET- iP
- MIOIfT EVENT SEIlVIC! S
- OJSTlIlUL
- SECUUTV
- P_ ING
- SAFETY
- FAIR MIDWAV
- FAIR ENTRIES
ILLMCLI2
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
ACEC
EXHIBIT 6: FINANCE DIVISION
PRESENT ORGANIZATIONAL STRUCTURE
AIlOlISHHENT
PEIIlING
D LEGEND
PERIIANENT 5TAfF D PART TIlE ('" 1 « XJlS1lEEJ(). o PART TIlE
(<'" I « XJlS/ IEE1()
L FA1R
( FUlL TIlE' PART
TIlE: CQftRACTCIl) •
ILLMCL'"
ACEC
EXHIBIT 7: BOOKING DIVISION
PRESENT ORGANIZATIONAL STRUCTURE
ASSISTANT
EXECUTIVE DIRECTlll
COlISEUf HANAGER
PA « RT. TtIolE. JISIl& I()
FAIR
( W- tilT~ fR:~)
LEtlBIl
~ sn"
PART TIlE
(. to. JISIl& I()
D
D oC
)
)
ILLHCLt5' •••••••••••••••••••••••••••••••••••••••••••••••••••••••
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
ACEC
EXHIBIT 8: ADMINISTRATION DIVISION
PRESENT ORGANIZATIONAL STRUCTURE
i
EXECUTl'l£
STAff
ASSISTANT
II
CCH4ERCIAL SPACf
SUPEIlVISIJl
( VACANT)
I
~ AIlIIINISTRAT1' 1£ I I AIlIIINISTRATI'I£ I I, eatUlICATI() 15 I LOCATalS I fAIR I CLERICAL
ASSISTANT III SECRETARV III SUPEIlVISIJlI POOl ( J' 2 CRBlENTIALS TEIf'S
( VACANT) CLERK TVPIST III POOl ( J' 2
I I I I
I IClALEIL RK I IlAllICILERK I r lPfOtROAl T( Ja' lS ~ II lPfOtROAl T( Ja' lS 6 I I_ TTEt1t'SOl
POOl ( J' , .., 5
D LEGEND
PERMANENT STAFf D PA( 4R8T tToINJRE Sllftl() o PA « R4T8TtINoJERSllftl()
L FAIR
( FUll TINEfltART
TINE; CON ACTOO)
lllllCLt]
ACEC
EXHIBIT 9: OPERATIONS DIVISION
PRESENT ORGANIZATIONAL STRUCTURE
ASSISTANT
EXECUTIVE
DIRECTlll
Cl'ERATlONS
.-.-. l. llHC. ll6 ..
6OU'
CART
CllNTRACTal
lL
( S! E EXHIBIT II ! IITIIIES
ORGANIlATIOIAI.
STllUCTIJlE )
( RE!' alTS TO
PPSI - GRaNlS)
- ( RfI'OlTS TO
PPSI - GRaNlS)
( S! E EXHI8IT 6:
PKYSICAl PlANT
COlISEIJl
DRGANIlATI< JlAl
STIIUCTIJlE )
( S! E EXHIBIT H:
PKYSICAl PlANT
GRaNlS
DRGANIlATI< JlAl
STRUCTIJlE )
PART TIME
(< It IOJRS/ WEEK)
PART TIME
« < It 1OJRS1lEE10
FAIR
(~} i; TE~ fR~~~ l. n
lEGEtIl
D I'ERIlAHENT STAFF
D oC .-..
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
ACEC
EXHIBIT 10: SECURITY/ PARKING DEPARTMENTS
PRESENT ORGANIZATIONAL STRUCTURE
I SEWllTV CHIEF I
..
( PlS « NlffIRXVPISOOlllCf J I~~ I I~~ I
PARKING SECl. UTY
I I I I I I I I CllEllENTIALS I ( ffICf_ 1 Dt ·
S
• ( ffIC£ RS~ I E'mIT CDITRDl I ( SEClIIITY LTS. JI ~ I~~ ( I I 5lIJTTlE IlUS PARKING GATE SE~ Mf'I lltJg:~' L. r I I ~ Cf: I POOl fI' 2 J ( ffICf POOl fI' l' POOl fI' 4
CllNTRACTDA ATTENDANT . MANAGER
CJ'£ RATIal Slf> ERVISOl : ~ ~ illm I
I I ( ( ffICf STAFF k&~~ J I SATEllITE
- I FIlL~ IV TEll'
POOl fI' 1 ( ffICf CLms
POOl fI' 4
r I I
( ( ffICf
) STAFF ( P~~ ER)
POOl fI' 2
Pl « ( NffIIXCEPROSlICf) I Pl « ( NffIIXCfPROSlICf I CPAOPlIl ~ I, CTllNQTIRTA1ClUTClJlll
POOl fI' ' I POOl fI' II POOl fI' 11 I I I ( PARKING SELLERS J
I
PARKING
POOl fI' 1. DAIVER ( ) ( POOl OF 2 I SlJS'EERCVTIlJSlOlS I G~ RANDST~ c~ a. ISEIJI sr..= t~ IIOSllEJ'E\' RDVEITSAlIIlL
POOl 0 F 1.
I I I
I_ T~ ( OOLISEIJI 1 I- ua SEWlITY SEClIIITY POOl fI' 22
( GATE CDITRDlLER J ( LOT ATTENlANT ) POOl fI' 4t POOl fI' ~
POOl fI' 12 SlJ'ERVISOlS
POOl OF 6
(~~~ l » ) I 21TH AYE. & I CAPITOl LOTS
I
EI1PlO'lEf
D. P. S. LOTS POOl fI' 15 PARKING
POOl fI' I. POOl fI' 251 POOl fI' " D LEGEM)
PERHANENT STAFF
I CATTLEBARN I SOOTH IUIlDING I EXHIBIT I LOADING DOlX I'AIlKIN6 LOT
SECTDA SECTDA IUILDING SECTlJl SECTORS
D POOl OF 25 POOl OF 22 POOl fI' 15 POOl OFI2 POOl fI' 13 PA( 4Rt! tToI. lJElSflEEI() o PART TIlE ( ca. ISEIJI
I
« 4t to. JlSlWEEX) FIRST- AID FIRMSIDTW- AAVID IF_ IRSTT- A~ ID I CFllNIRTSRTA- CATIlDJl
POOl: fI' 1 POOl OF 6 POOl OF 6 POOl fI' 14 C FAIR
( FUlL TIlEflART
TIlE; Cal ACTDA)
lllHCLtI
ACEC
OPERATIONS DIVISION
EXHIBIT 11: PHYSICAL PLANT - COLISEUM
PRESENT ORGANIZATIONAL STRUCTURE
CUSTllOUN
I'OOl C. 2
IllllCllNl!
CUSTIlOIA115
I'OOl C. ..
lAlllJlEllS
I'OOl C. 2t
- SfT LP
- ClEANIll8
TeI'S ASSllII! D AS NEBEII
- CUSTllOIAl
TeI'S ASSIGNED AS NEEIlED:
PART TIlE
( ole 1OJRS11EE1()
PART TIlE
( ( ole 1OJRS11EE1()
lEtlElC>
_ STAFf
FAIR
(~~; T~ fR~ rr~)
D
D
o
C
m!
......-. -.- - .
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
ACEC
OPERATION DIVISION
EXHIBIT 12: PHYSICAL PLANT - GROUNDS
PRESENT ORGANIZATIONAL STRUCTURE
1BPS ASSI_ AS _
lAlllJlERS
POOl CF 6
D lE68Cl
D P_ A(< RSITtTTtoIMJAIES/ FlEEF I() o PA( R< T< ItTItMoJEISIllEEK) C FAIR
( FUll TIMEhtART
TIME: cal ACTCIl).
tllllCll7
JJ
ACEC
OPERATIONS DIVISION
EXHIBIT 13: ENTRIES
PRESENT ORGANIZATIONAL STRUCTURE
RIHlERS
( 8- 11)
.)
::>
D lEGEICl
D PPEA( lR. lIT. lANTIfEIUIllETlSS/ ITEIBR O o PA( R< T.. T1IflUElS1lEB() C fAIR
( fUll TIlEhtART
lLUlClt9'
TIlE; COO ACTtIl) I
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
ARIZONA VETERANS' MEMORIAL
COLISEUM
AND EXPOSITION CENTER
BOARD, DIRECTOR, DIVISION HEADS & DEPTS.
Revised Organizational Structure
July 1, 1993
Board
of Directors
I
Gary Montgomery
Executive Director
N
1.0 I
Ray McAuley
Deputy Director
Accounting
Purchasing
Personnel
Admin. Assistant
Fair Ticket Sales
I
Don West
Coliseum Manager
Events Staff
Box Office
Advertising/ Marketing
Programs & Novelties
Fair Ticket Weighing
I
[
Gary Spence
Operations Director
_ Entries
F Coliseum Maintenance
Grounds Maintenance
Equipment Maintenance
_ Midway Coordination
_ Security/ First Aid
__ Parking
I
Georga Westmoreland
Executive Staff Asst.
Communications
E Fair Information
Fair Commercial Sales
Fair Credentials
ARIZONA VETERANS' MEMORIAL
COLISEUM
AND EXPOSITION CENTER
FINANCE DIVISION
Revised Organizational Structure
July 1, 1993
PERMANENT STAFf.
FULL TIME TEMPORARY
( 40 hrs per week)
PART TIME TEMPORARY
« 40 hrs per week)
FAIR ( Full Timc, Port Timc
and Conlr< 1clor)
ADOT
LIAISON
LEGEND
c=
DEPUTY
DIRECTOR
~-
FAIR TICKET PERSONNEL PURCHASING ACCOUNTING LEGISLATIVE LIAiSON
MANAGER MANAGER MANAGER MANAGER SPAADCMEINLOACSASTTO. R
I
TEMP TEMP CAPITOL POLICE SHlfTTLE
LIAISON CONTRACTOR
~.~"-~---
---~_._---- I
PCAAYSRHOIELRL ACCTOEUMNPTING ACCTOEUMNPTING RFEINPAONRCTIIANLG PAYABLES
ADMISSIONS MIDWAY ADMISSIONS
SALES OFFICE OFFICE
SUPERVISOR SUPERVISOR SUPERVISOR
I I
TEMPS TEMPS TEMPS Cl POOL OF 132 POOL OF 6 POOL OF 3 - [)
TEMPS
POOL OF
-~_.
[
MIDWA
SALES
SUPERVIS = r
w
o
JUl. Y 1993
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
S
ANT
F1. JLL TIME TEMPORAJ<. Y
( 40 hrs per week)
PART TIME ThWORARY
« 40 hrs per week)
FAIR ( Full Time. Part Time
and Contractor}
LEGEND
COLISEUM DIVISION
Revised Organizational Structure
July I, 1993 .
31
CLERICAL
TEMP
FAIR
WRITER
MEDIA ESCORTS
POOL OF6
FAIR
PHOTOGRAPHERS
( 2)
I ASU MARKETING
l SURVEYORS
POOL OF 8
COliSEUM
DIVISION
MANAGER
I I I I I
DIRECTOR OF EXEC. SECRETARY II IASSISTANT COLlSEU~ BOX OFFICE rl PROGRAMS AND ] GROUP SALE ~ MARKETING AND ~ BOOKING ~ ~ NOVELTIES
ADVERTISING COORDINATOR MANAGER MANAGER DIRECTOR CONSULT
,
ADMINISTRATIVE STAGE MANAGER ASSISTANT EVENT ASSISTANT BOX Y NOVELTY
1
ASSISTANT II ..... POOLOF4 - COORDINATOR >- OSFAFLICESE MSPGEPCJTIAICLIKSETT SELLERS
,
, I
GRAPHIC SIDESADDLE { HEAD BOXOFFICE
- DESIGNER I
L- DRIVERS ( 2) USHER H CLERKS
POOL OF 2
GRAPHIC lUSHER CHIEFS H TICKET SELLERS -- I
ARTIST PooLOF4 POOL OF 20
- CLERICAL POUSOHLEORFS80 FAIR TICKET f- TEMP MANAGER
VOICE
- OFTHE
H FAIR DRIVERS L- TICKET TEMPS
( 4) POOL OF 2
•••
ARIZONA VETERANS' MEMORIAL
: COLISEUM
• AND EXPOSITION CENTER •••••
•••••
••••
•••••
••••
•••
••
••
••
••••••••
•••••
••• •
ARIZONA VETERANS' MEMORIAL
COLISEUM
AND EXPOSITION CENTER
ADMINISTRATION DIVISION
Revised Organizational Structure
. July 1, 1993
WN
EXECUTIVE
STAFF
ASSISTANT
I I I I
ADMINISTRATIVE . ADMINISTRATIVE CLERICAL
ASSISTANT III SECRETARY III/ SOUVENIR LOCATORS FAIR TEMPS
SALES POOL OF 2 CREDENTIALS
( VACANT) COMMUNICATIONS POOL OF 2
I I
CMLEARILK MAIL CIILERK OPPOEORALTOOFR6S PINOFOOTLEROMMFPAS1T0IO- 1N5
JULY 1993
CJ
CJ
CJ
C
LEGEND
PERMANENTSTAH' .
FULL TIME TEMPORARY
( 40 hrs per week)
PART TIME TEMPORARY
k 40 hrs per wt" Ok)
FAIR ( Full Time, P, 1rl Time
and. Conlrilclor)
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
ARIZONA VETERANS' MEMORIAL
COLISEUM
AND EXPOSITION CENTER
CHIEF
OF
SECURITY
SECURITY and PARI( ING DEPARTMENT
Revised Organizational Structure
July 1, 1993
w
U1 PARKING
ATIENDANTS
POOL ( 175)
EVENT CONTROL
OFFICER II
PARKING
PARKING
ATIENDANTS
POOL ( 175)
PHOENIX
POLICE
( 18)
SHUTILE
BUS
OFFICE
MANAGER
PARKING
SELLERS POOL
( 24)
EVENT
SECURITY
( 200)
- c I
DT~ EVENT CONTROL PHOENIX
OFFICE ~_~~~! f~ __ OFFICER II POLICE
SECURITY ( 12) MANAGER
'--~ l L ~_ J__
PARKING EVENT OFFICE OFFICE
SELLERS POOL SWITCHBOARD CLERKS CLERKS
( 36) ( 2) ( 4) ( 2)
I 1 I
10 PROGRAM FIRST- AID CONTRACT I CONTRACT
SECURITY
( 15) P( O30O) L FIR( S1T4 · ) AID LOCKSMITH P( 4O0O0) L _ ...,_.~-~--- '--------
JULY 1993
I I
CJ
c= J
C
LEGEND
PERMANENT STAH"
FULL TIME TEMPORARY
( 40 ' n. per week) -
PART TIME TEMPORARY
« 40 Ins per week)
FAIR ( Full Time, Part- Time
and Conlrador)
A I{ I L UNA VET E H. A N S I M EMU H. 1A L
COLISEUM
AND EXPOSITION CENTER
OPERATIONS DIVISION
Physical Plant - COLISE. UM
Revised Organizational Structure
July I, 1993
ASSISTANT
DIRECTOR OF
OPERATIONS
AL
I 1
PHYSICAL PLANT
SUPERVISOR II
,
T
1 I I
U LABOR CREW
EQUIPMENT EVENTS CREW) LABOR CUSTODI
SUPERVISOR
OPERATOR LABORERS I' SUPERVISOR POOL POOL
I) ( vacanl) ( vacant) ( 20) ( 30)
I I
LABORERS EQUIPMENT CUSTODIANS IEVE~ REW'
( 7) OPERATOR ( 2)
( 25)
SEMI- SKILL
LABORER
( 2) ( vacan
LABORER
( 2)
( 1 vacant)
HYSICAL PLAN
SUPERVISOR
COLISEUM'
BUILDING
MAINTENANCE
TECHNICIAN
LEGEND
PERMANENT STAFF
FULL TIME TEMPORARY
( 40 hrs per week)'
rARTT1ME TEMPORARY
« 40 Ius per week)
FAIR ( Full Time, rarl Time
and COl\ lr" clor)
I I
~
c= J
C , When running mulliple ~ hifls.
" yi93
••••••••••••••••••••••••••••••••• • it. cWu~' h. crl." ••••••••••••
..................................................... ~~
ARIZONA VETERANS' MEMORIAL
COLISEUM
AND EXPOSITION CENTER
OPERATIONS DIVISION
Physical Plant - Grounds
Revised Organizational Structure
July I, 1993
L
E
T
PHYSICAL
PLANT
SUPERVISOR III
I I I I I I I I
BLOCK CEMENT
PLUMBER
ELECTRICIANS PHYSICAL PLANl
WELDER ELECTRICAL LANDSCAF
LAYER FINISHER ( 2) SUPERVISOR I SIGN PAINTER
CONTRACTORS ARCHITEC
I I
SEMI LABOR POC
SKILLED ( 6)
LABORER
"---- I I I I I .1 ~ --
EOQPUEIRPAMTEONRT OEQPEURIPAMTEONRTI OEPQEURIPAMTOENRTII LABO( 2R) ERS LABO( 8R) ERS LABPOOROELRS IlABOPOROELR'
w
-.... j
o
c= J
c= J
C
LEGEND
PERMANENT STAl'l'
FULL TIME TEMPORARY
( 40 hrs p~ r w~ ek)
PARTTlME TEMPORARY
« 40 1m per we~ k)
I'AIR ( Full Time, PorI Time
and Conlractor)
JULY 1993
ARIZONA VETERANS' MEMORIAL
COLISEUM
AND EXPOSITION CENTER
ENTRY DEPARTMENT
Revised Organizational Structure
July 1, 1993
TS
TS
ADMINISTRATIVE ASSISTANT III
DIRECTOR OF ENTRIES
----
-- I , I I I
OCK VETERINARIAN
MISCELLANEOUS OFFICE
ADMINISTRATIVE ASSISTANT II DEPARTMENT
rOR CONTRACT SERVICES ASSiSTANTS ENTRIES SUPERVISOR SECRETARY JUDGES
COMPUTER PROGRAMMER
SUPERINTENDEN
--
- T
MENT
NDENTS ASSISTANT
1 1 SUPERINTENDEN
>----
-- r
TANT JUDGE'S DEPARTMENTAL RUNNERS
ENDENTS CLERKS OFFICE PERSONNEL CLERKS AND
) HOSTESSES
--
LIVEST
DIREC
ASSIS
SUPERINT
( 2
DEPART
SUPEnINT
( 5
w
OJ
I I
c= J
LJ
C
LEGEND
PERMANENT STAFF
FULL TIME TEMPORARY
( 40 hrs per week)
PART TIME TEMPORARY
« 40 hr. per week)
FAIR ( Full Time, P. rtTime
. nd Conlrarlor)
.. JUL. Y 199.3 ................................................. ,~
...................................................... ~
nl\ IL" UJ- JJ\ VLJeh. J\ I" J 1\! lelvlVl\ ll~ L
COLISEUM
AND EXPOSITION CENTER
_ L~_
ASSISTANT
EXECUTIVE DIRECTOR
OPERATIONS
Ul> t- H. A l1Ul\ 1t; Ul Vl~ lUl"
Revised Organizational StructurE
July 1, 1993
I
EQUIPMENT
REPAIR
TECHNICIAN
DPS
LIAISON
~~~]=
FAIR 1
__ J
DPS
OFFICERS
POOL OF 166
ww
SECURITY
CHIEF
( SEE EXHIBIT F:
SECURITY AND PARKING
ORGANIZATIONAL
STRUCTURE)
I
EQUIPMENT
SERVICES
ASSISTANT B
ASSISTANT
DIRECTOR OF
OPERATIONS
ADM ASST III
OFFICE MGR.
( SEE EXHIBIT J:
OPERATIONS OFFICE
ORGANIZATlONAL
STRUCTURE
ADM ASS'T III
DIRECTOR OF
ENTRIES
( SEE EXHIBIT I:
ENTRIES
ORGANIZATIONAL
STRUCTURE)
I
ASSISTANT
MIDWAY MANAGER
SAFETY
CONTRACTORS
CHIEF
RIGGER
PHYSICAL PLANT
SUPERVISOR
COLISEUM
PHYSICAL
PLANT
SUPERVISOR III
PHYSICAL PLANT
SUPERVISOR"
COLISEUM
STOREKEEPER
DOC
CREW
SUPERVISOR
- J~ Jrl CARPENTER!
RIGGER
I
I RIGGERS I POOL OF 15
( SEE EXHIBIT G:
PHYSICAL PLANT
COLISEUM
ORGANIZATIONAL
STRUCTURE)
( SEE EXHIBIT H:
PHYSICAL PLANT
GROUNDS
ORGANIZATIONAL
STRUCTURE)
( SEE EXHIBIT G:
PHYSICAL PLANT
COLISEUM
ORGANIZATIONAL
STRUCTURE)
I
LABORER
I
RUNNER
I I
I I
LJ
C
DOC
CLEANING
CREW
LEGEND
PERMANENT STAFF
FULL TIME TEMPORARY.
( 40 Ins p~ r week)
PART TIME TEMPORARY
« 40 hrs p(' r we~ k)
FAIR ( Full Time, Pari lime
and Contr< 1clor)
ARIZONA VETERANS' MEMORIAL
COLISEUM
AND EXPOSITION CENTER
OPERATIONS DIVISION
Revised Organizational Structure
July I, 1993
y
Adm Ass't III
Office Manager
J I I I I I
Jdian Custodial Secretarl Secretary Secretary Secretar ~) Worker II 16hrsMr
I
I ~ I
dians : odian Custodia
Call Poolof4
~
l_~
[ Cuslo
On
w
~
. Jlyi 93••••••••••••••••••••••••••••••••••••••
LEGEND I I PERMANENT STAFF CJ FULL TIME TEMPORARY
( 40 Ius per week)
~ PART TIME TEMPORARY L-- J « 40 hrs per week)
r--- FAIR ( Full Time, ParI Time L- and Conlr., dnr) •••••••••••• r~
•••••••••••••
••••••
•••••••
•••••••••••••••
••••••••••
••• •
3. PERFORMANCE SHARING PLAN
Current situation:
The ACEC does not contribute funds to the State General Fund on an annual
basis. The ACEC, however, was mandated to transfer $ 1,000,000.00 in
1989, and $ 2,000,000.00 in 1992 to the State General Fund, and in 1987
repaid a loan of $ 1,085,000.00 from the State General Fund twenty years
ahead of schedule.
The ACEC is called an " enterprise agency" because it retains its operating and
non- operating revenues to offset operating and capital expens" es and retire its
revenue bonds. The ACEC is statutorily designed to be a self- sustaining
agency. Non- operating funds include a share of the State's racing receipts and
interest on investments.
The ACEC receives 5% annually of the funds generated by pari- mutuel racing
( A. R. S. Sec. 5- 113. A.). These funds are allocated to the ACEC for capital
outlay and debt service. In FY 93, these funds amounted to $ 438,694.00.
The ACEC holds its racing receipts in its Capital Outlay Fund.
The ACEC maintains an Operating Fund for operating and maintenance
expenses, and capital improvements. Other funds of the ACEC and their
investments are described in the Findings and Proposals for Cash Management
recommendation.
The Auditor General audits the ACEC's financial statements annually for the
year ending on June 30. The financial statements audited are prepared by the
ACEC.
The ACEC's permanent employees are State of Arizona employees subject to
the salary and benefit schedules of the State. Salary and merit increases and
cost- of- living raises are determined by the Legislature. The ACEC's permanent
employees enjoy these benefits to the same extent, and under the same
guidelines, as other State employees.
Impact:
The legislative requests for contributions to the State General Fund disrupt the
ACEC's planning for capital improvements and negatively affect the employees
who are proud of the ACEC's enterprise status and profitable performance.
Secondly, there is no mechanism to reward permanent employees for their
entrepreneurial efforts.
39
The State General Fund, on the other hand, is not in a position to collect a
consistent cash return on the public assets managed by the ACEC.
Proposals:
The ACEC should establish an Agency Performance Sharing Plan which
provides for a potential annual contribution to the State General Fund and a
reward and incentive plan for employees.
The Plan could have the following cOfJ'lponents:
a. Be based on cash profits.
b. Have a fixed minimum contribution or a variable contribution to
the State General Fund.
c. Employees have an opportunity to benefit from the ACEC's share
of performance benefits.
d. The shares of the ACEC and of its employees are linked to
achieving specific business performance objectives established in
a formal agency- wide performance monitoring system.
The ACEC should create a Study Team to draft necessary legislation and
implement the adopted Plan. Legislation will be required to create and
implement an Agency Performance Sharing Plan.
Benefits:
As a result of implementing an Agency Performance Sharing Plan the ACEC
would:
Become an important contributing agency to the welfare of the State of
Arizona
Know in advance what portion of its profits would be contributed to the
State General Fund and would be better able to plan long- term
improvements and projects
Be rewarded for increasing its profits, and its employees would be
rewarded for their entrepreneurial efforts and diligence.
The State of Arizona would receive a financial return on a major asset and reap
the benefits of public investments dating back before Statehood.
A Performance Sharing Plan would serve as a model for other State agencies
and would enhance Arizona's image as a national governmental leader.
40
••••••••
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••
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Management comments:
Any plan would have to be approved by the ACEC Board and would require
legislation. The proposals will be carefully reviewed and considered by the
ACEC.
Concern is expressed that the profit objectives should not overshadow the
public interest mission and services of the ACEC.
The ACEC would not like to see the annual budgetary process become a
nitpicking debate over budget formulas.
Implementation of a Performance Sharing Plan should not wait for next year's
retirement of the Coliseum revenue bonds as long as it is consistent with the
bond resolution.
41
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•••••
••••••
••
•••
••••••
••
••••••••
••
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••••••
••••
4. PERFORMANCE MONITORING
4.1 MANAGEMENT SYSTEMS
Current situation:
Currently, the ACEC does not have a year- round, formal, agency- wide
performance management system. Such a system would be required to
support the distribution of performance sharing financial rewards to employees.
During the Fair some performance measures are generated. Profit and Loss
( P& L) reports are generated by Department comparing actuals to budgets and
prior years.
During the non- fair period P& L reports are generated by department, comparing
current year's performance to prior year results.
An evaluation of the agency in terms of Total Ouality Management ( TOM),
performance monitoring and human resource management principles reveals
weaknesses in the following areas:
Performance Measures and Objectives:
The Agency and its organizational units need to have a set of
comprehensive, documented measures of collective performance ( such
measures are distinct from the state's individual- based EPAS measures).
Collective performance measures form the basis for establishing specific
objectives, or results, to be achieved by teams of employees within a
specified timeframe.
On occasion, top management does set a major objective and follow- up
system. For example, during the last Fair the objective was an
attendance of one million and cumulative daily attendance figures were
compared to this objective. The Booking Division does appear to have
made a limited attempt at instituting such performance measures and
objectives.
Performance Reports:
Even in the most developed area of financial reporting, non- Fair
information is reported in relation to the previous year but not to current
year's budget or performance target.
43
A recent report on Event Performance comparing actual to projected
financial performance after events has · been proposed by the Finance
Division for use by the Booking Division but OEG could not determine
whether it is actually being used.
Data Collection:
Without a framework of performance measures and objectives, data
collection appears to have developed as information needs have arisen
over time.
As an example. information on employee hours and equipment use is
collected from Coliseum Operations employees but only if it is in support
of back charges to event promoters. Use of time and equipment on
other occasions is not recorded.
Participative Management:
Participation in management of the ACEC appears generally limited to
five individuals - Executive Director, Deputy Director, Operations Division
Director, Coliseum Manager and Legal Counsel - who meet weekly to
make all key decisions.
The agency's skilled craftsmen do not seem to be systematically
involved with contracts for work in their specialty on the ACEC grounds.
These internal experts are not involved in areas such as scope of work,
bid review, contractor supervision or quality assurance.
Security and Parking management is not systematically involved before
contract negotiations with promoters to agree on the resources needed.
Communication:
Communication in the ACEe appears to be limited to narrow channels
within Divisions and Departments.
Inconsistent responses were frequently given to identical general
questions asked in different Divisions or at different levels of the same
Division ( e. g. questions related to security arrangements, reporting
relations, financial relationships).
Great concern was expressed by two managers about discussing matters
of policy with immediate subordinate Supervisors.
44
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••••••
•••••
••••••
•••
•••••••
•••••••
••••••••••••
45
Impact:
Proposals:
Assign to each team the following responsibilities:
Percent of Maricopa Co. population attending state fair.
40% for the ' 93 fair.
Measure:
Objective:
Delegation of financial responsibility appears to be limited to the Deputy
Director, Coliseum Manager and Operations Division Director.
Select the most important performance measures of their key
functional area, giving priority to those which are most closely
A significant exception to the above is the widespread distribution of
event schedules and setup sheets to coordinate the planning of events.
Operations Division monthly · fi. nancial reports are being more widely
distributed since this review began. As a result, Security management
expressed surprise at certain costs allocated to that Department and
Entries management found differences between their own departmental
records and those of the Finance Division.
Select a limited number of overall agency performance measure( s) and
objective( s) ( a maximum of 3- 5 measures). For example:
Create teams in the ACEC's key functional areas, including representative
members from the lower levels in the organization. For example, teams could
be created at the Department levels ( e. g. Entries, Security and Parking,
Personnel, Accounting, Box Office) to include at least first line supervisors.
Delegation of financial responsibility:
The ACEC should establish a formal and comprehensive performance
monitoring system to support a proposed performance sharing plan and boost
performance levels. The key features of a Performance Monitoring System are
as follows:
The project team believes that the current collective performance levels ofthe
ACEC are probably not as high as they could be, given the absence of a formal
and comprehensive performance monitoring system.
•••
•••
•••
•••
•••••
•••••••
••••••••
••••
•••••
•••
••••••
•••• •
linked to the Agency's overall performance measure( s) ( maximum
of 3- 5 measures).
. Collect the data needed to assess the current levels of
performance for each performance measure.
Based on the current level of performance, set an ambitious
performance level objective for each performance measure to be
achieved by a specific date ( e. g. in one year or less).
Develop, for each objective, a set of action plans to achieve the
objective. Action plans should include a description of the action,
a completion date, and the individual or team responsible. If the
action plans involve members of other teams, review plans with
them to obtain agreement and support.
Establish, for each objective, the data collection systems needed
to measure actual performance levels and record progress at
regular intervals ( at least monthly).
Establish a short ( two- three page) team performance report for top
management, based on the data collected, to track graphically
performance versus objective ( at least monthly). The charts
should be have a comment section which is filled in by the highest
ranking team member. The report should include an exception
report flagging action plans which have not been completed as
planned.
Publicize the initial team commitments ( objectives and action
plans) and progress in reaching objectives. Publicity should take
two forms: 1) Bulletin boards prominently displayed, and 2)
Quarterly public presentations to management and other teams.
The presentations also provide management with an opportunity
to communicate overall agency performance versus objectives,
communicate policy, listen to concerns and identify and support
key players at all levels.
Benefits:
A formal and comprehensive performance monitoring system will support the
performance sharing plan, increase performance levels, recognize achievement
and broaden participation in the management of the agency.
46
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47
PERFORMANCE MONITORING
CAPACITY UTILIZATION
Current situation:
First
6mo. s
1993
Event Cap.
Days 1lliL.
71 Flo
53 29%
1992
Event Cap.
~ ! lliL.
249 68%
110 30%
~
Event Cap.
Q.. aY. S ! lliL.
288 79%
94 26%
~
Event Cap.
Q.. aY. S ! lliL.
293 80%
99 27%
Coliseum:
Grounds:
A significant decline in Coliseum capacity utilization
A modest increase in Grounds capacity utilization
The Coliseum capacity utilization is more than twice as large as
the average grounds building utilization.
1. Limited objectives:
Management's primary focus has been on the 18 days of the
State Fair when capacity utilization is at its maximum level for
both the Coliseum and Grounds.
The respective capacity utilizations of the Coliseum and Ground Facilities
( grouped together) can be expressed as percentages of total days dedicated to
events in relation to total days in the year. Days dedicated to events include
" move in" and " move out" days, ice making days, and, in the case of sports
events, days required to be held for playoffs.
External factors ( e. g. the local market for entertainment, the departure of the
Phoenix Suns) have affected the agency's capacity utilizations. However, there
also appear to be internal factors which may limit capacity utilization of
facilities. Examples of four such factors follow:
The past three years history of capacity utilizations for the Coliseum and the
Grounds Facilities are as follows ( Grounds figures are averages for all buildings
excluding the Coliseum):
Details related to these capacity utilizations are presented in Exhibits 24 and 25
for 1990, Exhibits 26 and 27 for 1991, and Exhibits 28 and 29 for 1992, and
Exhibit 30 for the first six months of 1993.
The capacity utiHzations presented above reveal:
4.2
4.
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•••
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•••
••••••
•••
For non- Fair Coliseum capacity utilization, the only objective
expressed to us during our interviews was to " replace two- thirds
of the Suns 41 dates in FY ' 93."
There appear to be no specific non- Fair Grounds Facilities
objectives related to capacity utilization.
2. Limited deployment of resources:
The only individual dedicated to booking events is the Coliseum
Manager in charge of the Booking Division. This position is
responsible for booking the Coliseum and the Grounds,
coordinating events ( in rotation with the Assistant Coliseum
Manager), and supervising the box office function and the
Marketing and Adyertising function. Some booking assistance is
provided by the Executive Director and the Marketing and
Advertising Manager, both of whom have been Coliseum
Managers previously.
3. Policy constraints:
Facility rental rates are fixed year- round. Low demand days ( e. g.
early to mid- week, off- season) are priced the same as peak
demand days.
4. Operational constraints:
Extended " move in" periods prior to certain events:
Eight " move in" days for the Visiting Nurses Book Sale
Eight " move in" days for the Junior League Rummage Sale
16 " move in" days for the Maricopa County Fair
20 " move in" days for the ANLS
Impact:
Internal factors under the ACEC's management control may have a negative
impact on capacity utilization, and consequently, on revenues.
Proposals:
To increase capacity utilization and boost revenues, the OEG proposes that
management take action in the following areas:
48
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1. Objectives:
Following the establishment of a performance monitoring system as
proposed in Section 4.1 , establish a booking performance measure and
set an ambitious objective. ( e. g. 300 event days or 82% capacity
utilization rate).
2. Resources:
Increas. e the manpower resources dedicated to the Coliseum and create
dedicated resources for the Grounds Facilities.
3. Policy:
Develop an aggressive facilities rental rate structure designed to
maximize use of the facilities throughout the year. The rates sheet
should be transformed from an accounting into a marketing tool.
4. Operations:
Following the establishment of a performance monitoring system as
proposed in Section 4.1 I establish a " move in/ move out" performance
measure and set an ambitious objective. ( e. g. for returning events,
reduce " move in/ move out" time by 50% over last year).
5. Suggestions for events:
Book Coliseum events during the Maricopa County Fair
Book Coliseum and Grounds events during the Fiesta Bowl
celebration period
Organize Hispanic- oriented events ( e. g. trade shows related to
NAFTA, events sponsored by the Arizona- Sonora Commission)
Revive participation as a focal point for 10K races.
Benefits:
Increasing the capacity utilization rates of the Coliseum and Grounds will
increase revenues and the distribution of funds based on the Performance
Sharing Plan.
49
EXHIBIT 24: 1990 CAPACllY UTILIZATION
JAN FEB MAR APR MAY JUN
Event Tot. % Event Tot. % Event Tot. % Event Tot. % Event Tot. % Event Tot. %
clays ( 1) clays CaP. clavs ( 1) davs CaP. clays ( 1) days Cap. clays ( 1) clays Cap. days ( 1) clays Cap, clave ( 1) clava Cap,
7 31 23% 7 28 25% 7 31 23% 8 30 27% 20 31 65% 9 30 30%
7 31 23% 10 28 36% 9 31 29% 2 30 7% 0 31 0% 0 30 0%
13 31 42% g 28 7% 14 31 45% 14 30 47% § 31 16% 16 30 53%
27 31 87% 19 28 68% 30 31 97% 24 30 80% 25 31 81% 25 30 83%
5 31 16% 0 28 0% 10 31 32% 1 30 3% 0 31 0% 3 30 10%
5 31 16% 11 28 39% 0 31 0% 1 30 3% 0 31 0% 3 30 10%
20 31 65% 22 28 79% 20 31 65% 8 30 27% 10 31 32% 3 30 10%
13 31 42% 0 28 0% 12 31 39% 0 30 0% 4 31 13% 2 30 7%
0 31 0% 0 28 0% 17 31.' 55% 0 30 0% 0 31 0% 0 30 0%
9 31 29% 11 28 39% 18 31 58% 6 30 20% 7 31 23% 0 30 0%
0 31 0% 0 28 0% 0 31 0% 0 30 0% 0 31 0% 0 30 0%
6 31 19% 4 28 14% 11 31 35% 0 30 0% 0 31 0% 0 30 0%
5 31 16% 0 28 0% 13 31 42% 0 30 0% 0 31 0% 0 30 0%
19 31 61% 15 28 54% 19 31 61% 7 30 23% 11 31 35% 3 30 10%
5 31 16% 2 28 7% 14 31 45% 0 30 0% 0 31 0% 0 30 0%
11 31 35% 0 28 0% 9 31 29% 0 30 0% 0 31 0% 0 30 0%
14 31 45% 11 28 39% 16 31 52% 2 30 7% 14 31 45% 2 30 7%
( J1
a
COLISEUM ( SUNS)
COLISEUM ( ROADR)
COLISEUM ( OTHER)
COL TOTAL:
NORTH HALL
SOUTH HALL
MAN EXHIBIT
GRANDSTAND
ARIZONA PLAZA
AGRll
AGRI2
HOME EC& 4H
FLORICULTURE
YOUTH
CATTLE BARN
WILDLIFE
OUTSDE AREAS ( 2)
GROUNDS AVG: 30% 21% 44% 7% 13% 3%
( 1) Event days Include move In and move out days. For Coliseum, includes " hold" days.
( 2) Days when one or more events took place in the outside areas.
SUNS days Include days held for post season games
Roadrunner days include Kings camp days
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
EXHIBIT 25: 1990 CAPACITY UTILIZATION ( continued)
JUL AUG SEP OCT NOV DEC 1990
Even1 Tot. % Even1 Tot. % Event Tot. % Event Tot. % Even1 Tot. % Evem Tot. % Evem Tot. %
dayS ( 1) dava CaP. days ( 1) days CaP. days ( 1) days Cap. days ( 1) days Cap. days ( 1) dava Cap. dava ( 1) days Cap. days ( 1) days Cap.
3 31 10% 0 31 0% 0 30 0% 0 31 0% 6 30 20% 8 31 26% 75 365 21%
0 31 0% 0 31 0% 0 30 0% 0 31 0% 9 30 30% 8 31 26% 45 365 12%
11 31 35% 26 31 84% 27 30 90% 27 31 87% ~ 30 27% 10 31 32% 173 365 47%
14 31 45% 26 31 84% 27 30 90% 27 31 87% 23 30 77% 26 31 84% 293 365 80%
8 31 26% 8 31 26% 9 30 30% 29 31 94% 7 30 23% 0 31 0% 80 365 22%
5 31 16% 4 31 13% 3 30 10% 21 31 68% 0 30 0% 0 31 0% 53 365 15%
0 31 0% 0 31 0% 16 30 53% 24 31 77% 6 30 20% 7 31 23% 136 365 37%
0 31 0% 0 31 0% 4 30 13% 24 31 77% 3 30 10% 22 31 71% 84 365 23%
0 31 0% 0 31 0% 30 30 100% 28 31 90% 2 30 7% 22 31 71% 99 365 27%
0 31 0% 0 31 0% 15 30 50% 31 31 100% 5 30 17% 24 31 77% 126 365 35%
0 31 0% 0 31 0% 0 30 0% 0 31 0% 2 30 7% 25 31 81% 27 365 7%
0 31 0% 0 31 0% 5 30 17% 28 31 90% 1 30 3% 22 31 71% n 365 21%
0 31 0% 0 31 0% 3 30 10% 31 31 100% 0 30 0% 22 31 71% 74 365 20%
0 31 0% 0 31 0% 17 30 57% 21 31 68% 9 30 30% 24 31 n% 145 365 40%
0 31 0% 0 31 0% 21 30 70% 31 31 100% 29 30 97% 22 31 71% 124 365 34%
0 31 0% 0 31 0% 2 30 7% 28 31 90% 0 30 0% 22 31 71% 72 365 20%
0 31 0% 0 31 0% 10 30 33% 31 31 100% 3 30 10% 26 31 84% 129 365 35%
COLISEUM ( SUNS)
COLISEUM ( ROADR)
COLISEUM ( OTHER)
COL TOTAL:
NORTH HALL
SOUTH HALL
MAN EXHIBIT
GRANDSTAND
ARIZONA PLAZA
U1 AGRI1
I-'
AGRI2
HOME EC& 4H
FLORICULTURE
YOUTH
CATTLE BARN
WILDLIFE
OUTSIDE AREAS ( 2)
GROUNDS. AVG: 0% 0% 37% 81% 18% 70% 99 365 27%
EXHIBIT 26: 1991 CAPACITY UTILIZATION
JAN FEB MAR APR MAY JUN
Event Tot. % Event Tot. % Event Tot. % Event Tot. % Event Tot. % Event Tot. %
days ( 1) days CaP. dava ( 1) davs CaP. davs ( 1) days Cap. days ( 1) days Cap. davs ( 1) dava CaD. dava ( 1) dava CaD.
6 31 19% 5 28 18% 8 31 26% 9 30 30% 18 31 58% 9 30 30%
7 31 23% 9 28 32% 6 31 19% 6 30 2O'J{, 6 31 19% 0 30 0%
17 31 55% 13 28 46% 15 31 48' J(, ~ 30 13% ~ 31 10% 16 30 53%
30 31 97% 27 28 96% 29 31 94% 19 30 63% 27 31 87% 25 30 83%
0 31 0% 0 28 0% 7 31 23% 2 30 7% 0 31 0% 0 30 0%
0 31 0% 0 28 0% 0 31 0% 0 30 0% 0 31 0% 0 30 0%
12 31 39% 27 28 96% 20 31 65% 5 30 17% 5 31 16% 1 30 3%
2 31 6% 0 28 0% 16 31 52% 4 30 13% 0 31 0% 0 30 0%
0 31 0% 4 28 14% 13 31 42% 0 30 0% 0 31 0% 0 30 0%
3 31 10% 11 28 39% 12 31 39% 5 30 17% 4 31 13% 4 30 13%
0 31 0% 7 28 25% 12 31 39% 2 30 7% 1 31 3% 2 30 7%
0 31 0% 4 28 14% 13 31 42% 0 30 0% 0 31 0% 0 30 0%
0 31 0% 4 28 14% 13 31 42% 0 30 0% 0 31 0% 0 30 0%
7 31 23% 5 28 18% 19 31 61% 2 30 7% 1 31 3% 3 30 10%
0 31 0% 4 28 14% 11 31 35% 0 30 0% 0 31 0% 0 30 0%
0 31 0% 1 28 4% 0 31 0% 2 30 7% 0 31 0% 0 30 0%
10 31 32% 8 28 29% 11 31 35% 10 30 33% 9 31 29% 11 30 37%
U1
N
COLISEUM ( SUNS)
COLISEUM ( AOADR)
COLISEUM ( OTHER)
COL TOTAL:
NORTH HALL
SOUlH HALL
MAN EXHIBIT
GRANDSTAND
ARIZONA PLAZA
AGRI1
AGRI2
HOMEEC & 4H
FLORICULTURE
YOUTH
CATTLE BARN
WILDLIFE
OUTSIDE AREAS ( 2)
GROUNDS AVG: 10% 24% 41% 9% 6% 6%
( 1) Event days include move In and move out days.
( 2) Days when one or more even1s 100k place In the ou1slde areas.
SUNS clays include clays held for post season games
Roadrunner clays include Kings camp days.
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
• ••••••••••••••••••••••••••••••••••••••••••••••••••••••
EXHIBIT 27: 1991 CAPACllY UTILIZATION ( continued)
JUL AUG SEP OCT NOV DEC 1991
Event Tot. % Event Tot. % Event Tot. % Event Tot. % Event Tot. % Event Tot. % . Event Tot. %
days ( 1) days CaD. days ( 1) dayS Cap. days ( 1) days Cap. days ( 1) days CaP. davs ( 1) days CaD. davs ( 1) dayS Cap. . days ( 1) dayS CaP.
3 31 10% 0 31 0% 0 30 0% 1 31 3% 9 30 30% 4 31 13% 72 365 20%
0 31 0% 0 31 0% 1.2 30 40% 5 31 16% 8 30 27% 8 31 26% 67 365 18%
15 31 48% 11 31 35% 1. 30 23% 24 31 77% ~ 30 30% 15 31 48% 149 365 41%
18 31 58% 11 31 35% 19 30 63% 30 31 97% 26 30 87% 27 31 87% 288 365 79%
0 31 0% 6 31 19% 0 30 0% 30 31 97% 8 30 27% 3 31 10% 56 365 15%
0 31 0% 0 31 0% 1 30 3% 15 31 48% 3 30 10% 0 31 0% 19 365 5%
5 31 16% 0 31 0% 8 30 27% 28 31 90% 10 30 33% 22 31 71% 143 365 39%
0 31 0% 0 31 0% 7 30 23% 14 31 45% 5 30 17% 24 31 n% 72 365 20%
0 31 0% 0 31 0% 28 30 93% 31 31 100% 6 30 20% 23 31 74% 105 365 29%
2 31 6% 3 31 10% 4 30 13% 31 31 100% 19 30 63% 24 31 77% 122 365 33%
2 31 6% 0 31 0% 0 30 0% 18 31 58% 17 30 57% 26 31 84% 87 365 24%
0 31 0% 0 31 0% 0 30 0% 30 31 97% 6 30 20% 23 31 74% 76 365 21%
0 31 0% 0 31 0% 0 30 0% 28 31 90% 5 30 17% 23 31 74% 73 365 20%
0 31 0% 0 31 0% 0 30 0% 30 31 97% 12 30 40% 23 31 74% 102 365 28%
0 31 0% 0 31 0% 19 30 63% 31 31 100% 5 30 17% 23 31 74% 93 365 25%
0 31 0% 0 31 0% 0 30 0% 14 31 45% 3 30 10% 0 31 0% 20 365 5%
9 31 29% 9 31 29% 13 30 43% 18 31 58% 10 30 33% 25 31 81% 143 365 39%
U1
W
COLISEUM ( SUNS)
COLISEUM ( ROADR)
COLISEUM ( OTHER)
COL TOTAL:
NORTH HALL
SOUlHHALL
MAIN EXHIBIT
GRANDSTMID
ARIZONA PLAZA
AGRll
AGRI2
HOME EC& 4H
FLORICULTURE
YOUTH
CATTLE BARN
WILDLIFE
OUTSIDE AREAS ( 2)
GROUNDS AVG: 5% 4% 24% 80% 30% 69% 94 365 26%
EXHIBIT 28: 1992 CAPACITY UTILIZATION
JAN FEB MAR APR MAY JUN
Event Tot. % Event Tot. % Event Tot. % Event Tot. % Event Tot. % Event Tot. %
days ( 1) days CaD. days ( 1) days Cap. days ( 1) days CaP. days ( 1) days Cap. days ( 1) days Cap. days ( 1) days CaD.
7 31 23% 8 29 28% 9 31 29% 12 30 40% 21 31 68% 8 30 27%
6 31 19% 8 29 28% 5 31 16% 2 30 7% 0 31 0% 0 30 0%
18 31 58% ~ 29 31% 16 31 52% ~ 30 17% ~ 31 16% 14 30 47%
31 31 100% 25 29 86% 30 31 97% 19 30 63% 26 31 84% 22 30 73%
7 31 23% 2 29 7% 11 31 35% 0 30 0% 0 31 0% 0 30 0%
6 31 19% 0 29 0% 14 31 45% 0 30 0% 0 31 0% 0 30 0%
22 31 71% 21 29 72% 22 31 71% 18 30 60% 5 31 1~ 0 30 0%
10 31 32% 4 29 14% 14 31 45% 4 30 13% .0 31 0% 0 30 0%
10 31 32% 5 29 17% 24 31 n% 0 30 0% ' 0 31 0% 0 30 0%
17 31 55% 10 29 34% 19 31 61% 15 30 50% 6 31 19% 6 30 20%
10 31 32% 8 29 28% 19 31 61% 15 30 50% 2 31 ~ 0 30 0%
10 31 32% 0 29 0% 21 31 68% 0 30 0% 0 31 0% 0 30 0%
10 31 32% 0 29 0% 21 31 68% 0 30 0% 0 31 0% 0 30 0%
18 31 58% 11 29 38% 22 31 71% 15 30 50% 0 31 0% 8 30 27%
10 31 32% 0 29 0% 21 31 68% 0 30 0% 0 31 0% 0 30 0%
0 31 0% 0 29 0% 0 31 0% 0 30 0% 0 31 0% 0 30 0%
16 31 52% 0 29 0% 21 31 68% 10 30 33% 6 31 19% 1 30 3%
<.. Tl
~
COLISEUM ( SUNS)
COLISEUM ( ROADR)
COLISEUM ( OTHER)
COL TOTAL:
NORTH HALL
SOUTH HALL
. MAN EXHIBIT
GRANDSTAND
ARIZONA PLAZA
AGRI1
AGRI2
HOME EC & 4H
FLORICULTURE
YOUTH
CATTLE BARN
WILDLIFE
OUTSDE AREAS ( 2)
GROUNDS AVG: 39% 18% 60% 23% 6% 5%
( 1) Event days include move in and move out days.
( 2) Days when one or more events took place in the outside areas.
SUNS days include days held for pos1 season games
Roadrunner clays include Kings camp days
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
EXHIBIT 29: 1992 CAPACITY UTILIZATION ( continued)
JUL AUG SEP OCT NOV DEC 1992
Event Tot. % Event Tot % Event Tot. % Event Tot. % Event Tol % Event Tot % Event Tot %
days ( 1) days Cap. days ( 1) days Cap. days ( 1) days Cap. davs ( 1) davs Cap. days ( 1) days Cap. davs ( 1) dava CaD. dava ( 1) days CaP.
0 31 O'J(, 0 31 O'J(, 0 30 O'J(, 0 31 O'J(, 0 30 O'J(, 0 31 O'J(, 65 366 18%
0 31 O'J(, 0 31 O'J(, 12 30 40' J(, 6 31 19% 8 30 27% 6 31 19% 53 366 14%
14 31 45% 14 31 45% ~ 30 10' J(, 19 31 61% ~ 30 ~ ~ 31 29% 131 366 36%
14 31 45% 14 31 45% 15 30 5O'J(, 25 31 81% 13 30 43% 15 31 48% 249 366 68%
0 31 O'J(, 7 31 23% 4 30 13% 31 31 100% 7 30 23% 4 31 13% 73 366 20%
0 31 O'J(, 0 31 O'J(, 0 30 0% 17 31 55% 2 30 7% 0 31 O'J(, 39 366 11%
0 31 O'J(, 0 31 O'J(, 11 30 37% 20 31 65% 10 30 S3% 21 31 68% 150 366 41%
0 31 O'J(, 0 31 O'J(, 5 30 17% 17 31 55% 1 30 3% 25 31 81% 80 .366 22%
0 31 O'J(, 0 31 O'J(, 30 30 100% 31 31 100% 0 30 O'J(, 23 31 74% 123' 366 34%
6 31 19% 11 31 35% 8 30 27% 31 31 100% 15 30 50% 23 31 74% 167 366 46%
7 31 23% 11 31 35% 3 30 10' J(, 20 31 65% 15 30 50% 21 31 68% 131 366 36%
0 31 O'J(, 0 31 O'J(, 1 30 3% 31 31 100% 2 30 7% 23 31 74% 88 366 24%
0 31 O'J(, 0 31 O'J(, 0 30 O'J(, 30 31 97% 2 30 7% 5 31 16% 68 366 19%
3 31 10' J(, 0 31 O'J(, 0 30 O'J(, 31 31 100% 5 30 17% 26 31 84% 139 366 38%
0 31 O'J(, 0 31 O'J(, 20 30 67% 31 31 100% 2 30 7% 21 31 68% 105 366 29%
0 31 O'J(, 0 31 O'J(, 0 30 O'J(, 17 31 55% 2 30 7% 25 31 81% 44 366 12%
0 31 O'J(, 5 31 16% 9 30 30% 18 31 58% 3 30 10' J(, 25 31 81% 114 366 31%
( Jl
( Jl
COLISEUM ( SUNS)
COLISEUM ( ROADR)
COLISEUM ( OTHER)
COL TOTAL:
NORTH HALL
SOUTH HALL
MAN EXHIBIT
GRANDSTAND
ARIZONA PLAZA
AGRI1
AGRI2
HOME EC& 4H
FLORICULTURE
YOUTH
CATTLE BARN
WILDLIFE
OUTSIDE AREAS ( 2)
GROUNDS AVG: 5% 8% 26% 81% 17% 70' J(, 110 366 30%
EXHIBIT 30: 1st HALF 1993 CAPACllY UTILIZATION
JAN FEB MAR APR MAY JUN 1992
Event Tot. % Event Tot. % Event Tot. % Event Tot. % Event Tot. % Event Tot. % Event Tat. %
dava ( 1) dava CaD. days ( 1) days Cap. days ( 1) dayS CaP. days ( 1) days CaP. dayS ( 1) days Cap. days ( 1) days Cap. days ( 1) days Cap.
0 31 0% 0 28 0% 0 31 0% 0 30 0% 0 31 0% 0 30 0% o 181 0%
6 31 19% 8 28 29% 8 31 26% 3 30 10% 0 31 0% 0 30 0% 25 181 14%
15 31 48% 1. 28 25% ~ 31 29% ~ 30 27% Q 31 0% 1. 30 23% 46 181 25%
21 31 68% 15 28 54% 17 31 55% 11 30 37% 0 31 0% 7 30 23% 71 181 39%
2 31 6% 0 28 0% 2 31 6% 2 30 7% 0 31 0% 3 30 10% 9 181 5%
0 31 0% 0 28 0% 0 31 0% 0 30 0% 0 31 0% 3 30 10% 3 181 2%
14 31 45% 20 28 71% 21 31 68% 7 30 23% 0 31 0% 0 30 0% 62 181 34%
10 31 32% 0 28 0% 31' 31 100% 0 30 0% 0 31 0% 0 30 0% 41 181 23%
10 31 32% 7 28 25% 24 31 T7% 8 30 27% 0 31 0% 0 30 0% 49 181 27%
15 31 48% 9 28 32% 26 31 84% 9 30 700% 7 31 23% 4 30 13% 70 181 39%
15 31 48% 6 28 21% 18 31 58% 6 30 20% 6 31 19% 0 30 0% 51 181 28%
10 31 32% 6 28 21% 31 31 100% 8 30 27% 0 31 0% 0 30 0% 55 181 30%
0 31 0% 0 28 0% 0 31 0% 0 30 0% 0 31 0% 0 30 0% o 181 0%
9 31 29% 7 28 25% 27 31 87% 6 30 20% 4 31 13% 0 30 0% 53 181 29%
12 31 39% 2 28 7% 24 31 n% 8 30 27% 0 31 0% 0 30 0% 46 181 25%
0 31 0% 0 28 0% 0 31 0% 0 30 0% 0 31 0% 0 30 0% o 181 0%
16 31 52% 11 28 39% 95 31 306% 24 30 80% 1 31 3% 5 30 17% 152 181 84%
U1
CT>
COLISEUM ( SUNS)
COLISEUM ( ROADR)
COLISEUM ( OTHER)
COL TOTAL:
NORTH HALL
SOUlH HALL
MAN EXHIBIT
GRANDSTAND
ARIZONA PLAZA
AGRI1
AGRI2
HOME EC & 4H
FLORICULTURE
YOUTH
CATTLE BARN
WILDLIFE
OUTSIDE AREAS ( 2)
GROUNDS AVG: 33% 22% 87% 84% 5% 3% 53 181 29%
( 1) Event days Include move In and move out days.
( 2) Deys when one or more events took place In the outside areas.
SUNS days include days held for post season games
RoadrunnElf days include Kings camp days
•••••••••••••••••••••••••••••••••••••••••••••••••••••••
••••••••
••••••
•••
•••••••
••••
••••••
••••
•••••
••••••••
••••
4. PERFORMANCE MANAGEMENT
4.3 INFORMATION MANAGEMENT
Current situation:
A Performance Sharing Plan requires performance monitoring which in turn
requires systems to manage information related to performance. At the ACEC,
there appear to be weaknesses in the area of information management.
In the Operations Division, for examp'le, we noted the following:
No maintenance work order system which allows maintenance activity
levels to be evaluated and planned by linking these activities to resources
and equipment or location. As an example, there is no integrated record
of the hours, value of materials and use of equipment related to skilled
craft work on a particular building.
Records of hours are related to specific maintenance activities and
locations only if they are charged back to events.
No records are maintained for equipment and vehicle on use ( who,
where, when, why) and downtime. Routine maintenance of vehicles and
equipment is not scheduled based on mileage or hours of use but
performed " when available". Regardless of vehicle and equipment age,
the replacement policy is to replace when parts can no longer be found.
Very limited use of planned maintenance schedules, procedures,
checklists and records.
Limited inventory management in the storeroom. The storekeeping
function does not include responsibility for maintaining records of
inventory receipts, issues and balances.
No integrated records of security resources and incidents by event to
evaluate and plan appropriate levels of security.
57
Impact:
The results of weak information management are as follows:
Work run on a day- to- day, or case- by- case, basis
Limited knowledge of performance status and trends
Limited planning capabilities and support for activity and resource levels
as expressed, for instance, in budgets.
Proposals:
Develop the information systems needed to support measuring the performance
objectives established by the proposed performance monitoring system ( see
Section 3.1).
Each information management system should provide for:
Collecting information in a timely and reliable manner
Storing information in a flexible form for retrieval
Statistical manipulation of information
Reporting of performance versus objectives.
Where computer systems are used, OEG propose that:
The main person responsible for each objective be in charge of the
information system for monitoring performance. Empowerment implies
trust. If concerns arise about the accuracy of information, audits can
always be performed.
Use off- the- shelf software to avoid the custom program quagmire.
Virtually all performance monitoring systems can be supported by
relatively inexpensive PC- based spreadsheets and data base management
systems.
Plan for proper training of all individuals involved from data collection to
reporting.
Benefits:
The simple introduction of accurate, reliable and publicized feedback on
collective performance usually results in significant, and often unexpected,
improvements. The effort and cost to introduce and maintain the information
systems is directly linked to performance monitoring, which in turn supports a
Performance Sharing Plan.
58
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•••
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••••••••
••••••
•
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•••
•••
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••
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••• •
5. REVENUE OPPORTUNITIES
5.1 PREFERENTIAL PARKING RATES
Current s1tuation:
Parking fees are a major source of revenue for the ACEC and totalled
$ 1,901,431.00 in FY 1992.
The ACEC charges a standard parking fee of $ 3.00 per vehicle for all events.
There are 2,968 sp, aces in the North Lot, 1,694 spaces in the South Lot, 1,137
spaces ( 1,053 Fair only) in the " 20th Avenue" Lot, and 930 spaces ( 750 Fair"
only) in the " DPS" Lot.
Other local venues have differential parking rates based on proximity to the
venue. For example, Blockbuster Desert Sky Pavilion charges $ 5.00 for parking
spaces nearest to the Pavilion, and $ 3.00 for farther away spaces.
The present Director of Marketing and Advertisement has had experience in
developing preferential parking systems. His expertise is available to the ACEC.
Impact:
Customers willing to pay a premium for a higher level of service are not offered
the opportunity to do so.
The ACEC is forsaking parking revenues which could be generated from
preferential parking fees. Parking revenues could be increased anywhere from
$ 93,240.00 to $ 186,480.00.
Preferential parking would require a physical dividing structure or median to
emphasize the perception of higher value. Construction costs, if required,
cannot be reasonably quantified at this time.
Proposals:
The ACEC design and implement a preferential parking fee system. The
Director of Marketing and Advertising could lead the planning team. The plan
could target all or certain events; be applied to future contracts with long- term
tenants; be applicable to the two outlying parking lots; and include different
rates for various types of events ( one rate for concerts, a different rate for
Grounds shows).
59
Benefits:
Setting aside the North and South Lots' spaces for preferential parking, the
ACEC's parking revenues would be enhanced between $ 93,240.00 and
$ 186,480.00 annually, or from 5% to 10% over FY 1992 parking revenues.
Management comments:
The benefits of preferential parking must be considered with the potential
additional costs of parking ticket sellers and the time necessary to sell multiple
tickets.
Since this recommendation was originally made, the ACEC has entered into an
agreement with the Roadrunners to set aside a number of parking places for
their season ticket holders as well as additional spaces that will be made
available to the general public ata cost of $ 4.00. In addition, it is the ACEC's
plan to set aside the North lot during the Fair as preferred parking for which
there will be a additional $ 1.00 premium charged per space.
60
••••••••
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•••••••
•••
••••
••••••••
••
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••••••••
••••
61
RENTAL OF PARKING LOTS
REVENUE OPPORTUNITIES
Current situation:
Difference
+ 30
- 23
+ 7
Parking Department
930
1,137
2,067
Rates Sheet
900
1,160
2,060
Lot
DPS
20th Ave
TOTAL
If a promoter wishes, the ACEC can rent any of its four parking lots for a fixed
rate. The current Rates Sheet shows that the lot referred to as the " DPS"
Parking Lot rents for $ 300.00 per day and the " 20th Avenue" Parking Lot for
$ 500.00 per day.
Proposals:
The Parking Department's records of the spaces in each lot are presented below
( there are minor inconsistencies with the number of parking spaces specified
in the Rates Sheet).
The ACEC use a consistent number of parking spaces to set rental rates for all
lots and adjust the Rates Sheet accordingly.
The ACEC increase its usage- based formula for the " DPS" and " 20th Avenue"
Parking Lots from 11 % and 15%, respectively, to a uniform 20%.
The parking revenues, when the parking lots are rented at fixed rates, are based
on a low percentage of potential revenue and are not consistent.
Impact:
The rental rates for the " DPS" and " 20th Avenue" lots are based on a usage
of 11 % for the " DPS" lot ( 100 spaces out of 930 at $ 3.00 each yields
$ 300.00) and 15% for the " 20th Avenue" lot ( 167 out of 1,137 spaces at
$ 3.00 each yields $ 500.00).
5.2
5.
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Benefits:
The ACEC could increase its fixed rates parking revenues. Using the 20% use
formula, the new rental rate for the " DPS" Parking Lot would be $ 500.00 and
for the " 20th Avenue" Parking Lot $ 700.00. If ten events rent the " DPS"
Parking Lot and the" 20th Avenue" Parking Lot, per year, parking income would
be increased from $ 800.00 ( under current rates) to $ 12,000.00.
Management comments:
One other idea would be to rent the lots for a percentage of sales/ profits
generated by the lessee.
62
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••• •
5. REVENUE OPPORTUNITIES
5.3 PARKING REVENUE LIMITATIONS AT ARIZONA NATIONAL LIVESTOCK SHOW
Current situation:
The ACEC does not charge for parking at any of the events sponsored by the
Arizona National Livestock Show ( ANLS). Parking is a major source of revenue
to cover the ACEC's costs, and the agency's standard parking fee is $ 3.00 per
vehicle for event parking.
The ANLS is the only event for which the ACEC does not- collect parking
revenues.
The ANLS records show that attendance at the 1991- 1992 National Show was
125,000 persons. The ACEC, on the other hand, estimates that 10,000
vehicles attended the ANLS last year which would have been charged for
parking, if a parking fee had been allowed. The ACEC's estimate for calculating
parking at general shows is 2.5 persons per vehicle.
For the 1991- 1992 Show, the ACEC incurred Parking Department expenses of
$ 13,212.00, for parking attendants and police security, which were not
reimbursed by ANLS.
The ANLS is funded from a portion of racing receipts allocated annually. In FY
89- 90, the ANLS received $ 373,758.46, in FY 90- 91, $ 370,000.32, and in FY
91- 92 $ 276,934.09. For FY 92- 93, $ 315,922.00 has been authorized. A
portion of these funds is used to pay the ACEC for the use of the facilities,
excluding parking.
Impact:
The ACEC is forsaking between $ 30,000.00 and $ 75,000.00 in annual parking
revenues, based on the 1991- 1992 Show attendance. The $ 30,000.00
revenue estimate is based on the ACEC's estimate of 10,000 vehicles.
Based on the ANLS estimate of 125,000 attendance at the 1991- 1992 Show,
assuming 50% of those persons were patrons who would have been charged
for parking, and using the estimate of 2.5 persons per vehicle, the number of
vehicles which would have paid for parking would have been 25,000, resulting
in a revenue loss of $ 75,000.00.
63
Proposals:
The ACEC could charge patrons for event parking at future ANLS Shows. As
an alternative, the ANLS could subsidize a portion of the patrons' $ 3.00 parking
fee.
Benefits:
The ACEC would enhance its revenues between $ 30,000.00 and $ 75,000.00
under current rates, and would eliminate a policy exception which favors one
major event over all others.
Management comments:
The ACEC disagrees that parking fees should be charged to gll patrons at the
show because it would not be cost effective.
The Rodeo is the only current event that it would be cost effective to charge
all attenders parking fees.
The ACEC indicated that a consideration would be split parking revenue with
the ANLS.
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5. REVENUE OPPORTUNITIES
5.4 FAIR COMMERCIAL EXHIBITORS AND CONCESSIONAIRES
Current situation:
For the Fair, the ACEC receives annually between 1,150 and 1,250 applications
for commercial exhibitor space and 200 applications for food concessionaire
space. Approximately 450 commercial space applications and 100 food
concessionaire spaces are approved for the Fair and contracts executed.
Therefore, 700- 800 commercial applications and 100 food applications are
denied each year because of lack of space.
Between 70% and 75% of the applications approved are from exhibitors
returning after last year's Fair. For the food concessionaires, about 99% of the
prior year's. Fair return. The ACEC policy is to book the prior Fair's exhibitors
and concessionaires first (" formers are booked first"). The result is that if an
applicant is accepted for one Fair, there is a very high probability that applicant
will be accepted every year thereafter. Only if there have been problems with
a lessee will that lessee not be accepted the following year.
Management has maintained a policy of increasing rates approximately every
two years and only after a " good" Fair. Rates were to have been raised during
the 1992 Fair but were not due to the uncertain economic conditions. The
1992 Fair was a " good" Fair.
For the 1992 Fair, the ACEC received $ 718,516.00 in revenues from
commercial space rentals and $ 89,314.00 from concession operations.
impact:
A more competitive selection process would provide the ACEC with critical
information regarding the market value of space at the Fair and Fair customer
preferences for exhibits and food. The selection process is informal ( based on
the judgment of one individual), mechanical and automatic. Diversity and
variety of applicants and goods and services are being neglected.
Proposals:
The ACEC implement a more competitive and objective selection process for
commercial exhibitors and food concessionaires.
The ACEC raise the rental rates by 10% for the 1993 Fair.
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Benefits:
A more competitive and objective selection systems is likely to make it easier
for the ACEC to charge higher rental rates, given the level of demand each
year.
Raising rental rates by 10% over current rates would increase revenues by
approximately $ 80,783.00 over total 1992 Fair commercial space and
concession revenues.
Management comments:
The ACEC raised the rates for the 1993 fair from $ 145.00 to $ 200.00 per
foot and established a rental option wherein the food contractors pay $ 160.00
a foot plus 20% or 23% ( the percentages are food and candy products
respectively). .
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5.5
REVENUE OPPORTUNITIES
CASH MANAGEMENT
Current situation:
The ACEC holds an investment fund known as " Operating Fund No. 1"; two
funds associated with the Coliseum revenue bonds, namely, " Sinking Fund No.
4" ( The ACEC indicates that this is not truly a sinking fund in accounting terms)
and " Bond Reserve Fund No. 5"; and a " Capital Outlay Fund No. 2."
A. Operating Fund No. 1
These funds are invested in United States Treasury Bills through the First
Interstate Bank of Arizona.
Between the end of November 1990 through the end of June 1993, the
balances of the ACEC's cash and investment fund ranged from a high of
$ 9,797,022.02 ( November 1991) to a low of $ 5,136,900.000 ( June 1993).
The monthly cash and investment balances declined from $ 8,838,801.48 in
June 1992 to $ 6,124,104.34 in September 1992. This decline was due to the
ACEC's contribution of $ 2,000,000.00 to the State General Fund at the
Legislature's request.
On June 30, 1993, the portfolio of Operating Fund No. 1 held by the First
Interstate Bank showed $ 5,589,300 in United States Treasury Bills as current
assets.
These funds are used for operational and maintenance expenses, and capital
improvements. The ACEC believes that these funds should be sufficiently liquid
to provide for ready access and to avoid interest rate risk when the investments
are liquidated.
B. Sinking Fund No. 4
On June 30, 1993, the portfolio of this fund held by the First Interstate Bank
showed $ 1,765,300 in United States Treasury Bills as current assets.
The ACEC uses this account to deposit funds to retire the Coliseum revenue
bonds. Currently, $ 1,820,000.00 is due on the bonds, with the last payment
due on June 30, 1994.
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Under Article V, Section 6 of Resolution 102 ( July 30, 1964) pertaining to the
Coliseum revenue bonds, funds deposited into this account are " to be used for
the redemption or purchase of outstanding bonds of this issue."
C. Bond Reserve Fund No. 5
On June 30, 1993, the portfolio of this fund held by the First Interstate Bank
showed the following United States Treasury Bills as current assets: Face
amount of $ 515,000.00 with a maturity of 364 days and an annual yield of
4.13%. The cost of these assets was $ 500,000.00. .
These funds are used as a $ 500,000.00 minimum reserve required in the
indenture of the Coliseum revenue bonds. They are intended to pay the bonds.
D. Capital Outlay Fund No. 2
On June 30, 1993, the portfolio of this fund held by the First Interstate Bank
showed no investments. The funds in this account come from allocated racing
receipts and are used for capital improvements and debt service. A. R. S. Sec.
5- 113. A.
The ACEC has pursued a very conservative interpretation of how these four
funds can be invested, and had an Attorney General's opinion issued in this
matter ( R84- 003). Resolution No. 1 02 ( July 30, 1964) provides in Article VI,
Section 1 ( Investment of Funds) that:
The State Fair Commission may invest in
obligations of the United States government,
or in obligations of agencies of the government
where the interest and principal due on such
obligations is fully guaranteed by the United
States government, surplus or temporarily
unused funds. The State Fair Commission
shall designate which funds shall be invested
and the terms of such investments... and the
income derived from such investments shall be
deposited in the Arizona State Fair Fund.
The ACEC may invest in United States Treasury instruments or in the
instruments of agencies whose principal and interest are guaranteed by the
United States. The ACEC is empowered to determine the investment strategy
and its execution.
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The four portfolios show that the ACEC is following a strategy of purchasing
Treasury Bills at a discount thereby profiting from capital gains upon maturity.
Treasury instruments are very liquid and can be bought and sold readily.
Interest rate risk is, however, a factor in carrying out an investment strategy
directed at income.
Impact:
The very conservative language of. Bond Resolution no. 103 is costing the
ACEC at least 1% yield on its investments.
Proposals:
The ACEC develop a cash management plan which sets forth its investment
philosophy and cash management objectives for Operating Fund No. 1. The
plan would call for investment decisions to be made for levels of assets. For
example, a minimum amount of $ 1,000,000.00 or a percentage ( like 20%) of
investments at fiscal year end would be invested in two- year instruments,
which could be Treasury Notes or certificates of deposit. The plan should
specify that the ACEC will seek the most advantageous cash management
services available in the State and would provide for change of advisors, if
necessary.
The ACEC invest a portion of the current Operating Fund NO. 1' s assets in twoyear
Treasury notes or certificates of deposit. A reasonable amount to invest
in two- year instruments in Operating Fund No. 1 would be $ 3,000,000.00.
The ACEC invest $ 500,000.00 of Sinking Fund No. 4 for maturity in May,
1994.
The ACEC continue investing Bond Reserve No. 5 in one- year instruments to
mature in May, 1994.
Benefits:
A cash management plan would permit the ACEC to assess its investment
needs and make its decisions within an objective framework, more quickly take
advantage of money rate trends since it has established its goals, better judge
the performance of its investment advisors and enhance its interest income.
Under current money interest rates, the ACEC could increase its interest income
by $ 31,000.00 ( assuming 1.0% over current average portfolio rates).
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Less trading of Government securities would result in a savings of commissions
and bid/ ask spreads.
Management comments:
The bond indenture does not legally permit investments in instruments whose
interest and principal are not government guaranteed. The bonds will mature on
June 30, 1994. After the bonds are retired a more aggressive income
producing investment plan will be implemented. The desirability of investing
in longer- term instruments is recognized and this issue has been reviewed by
management in depth. Such investing will be done after June 30, 1994, when
the bonds are retired.
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5.6 PRESS BOX SEATS
Current Situation:
the ACEC contracts with Coliseum promoters to provide a certain number of
" seats for use by the Coliseum and Board of Directors" ( New Standard
Contract, Clause IV. H). Under the new contract the number of seats is 40.
For Phoenix Roadrunners games, there are 21 seats available to the ACEC in
Sections 204 ( 16) and 305 ( 5).
For many events, there are 42 seats commonly known as the Press Box Seats,
situated in Section 205. During Roadrunners games, these seats are not
available to. the ACEC but are used by the media.
Any person affiliated with the Coliseum wishing a seat must complete a short
form; deliver the form to the Administration Division; pick up the tickets, if
granted; and pay a nominal charge of $ 1.00 per ticket. There " is a limit of a
4 ticket request per person per event" ( request form). An ACEC employee
desiring a seat must obtain the approval of his supervisor. The decision to
accept or deny the ticket request is made by the Executive Staff Assistant, and
the tickets are printed by the Box Office. The Executive Director makes any
difficult decisions on acceptance or denial of ticket requests.
The records of the 2,314 ticket requests for 69 events granted between
October 3, 1991, and November 13, 1992, show that the vast majority of
seats were used by the ACEC employees.
Impact:
The ACEC is not deriving the maximum economic benefit from the seats at its
disposal.
Proposals:
The ACEC should use the available guest seats for business marketing and
publicity. The ACEC should invite its Fair and non- Fair promoters, advertisers,
contractors and suppliers as guests to events at least once per year. The ACEC
could offer the availability of these guest tickets to State, City and local
economic development officials to publicize the Coliseum and Grounds.
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The price of these guest tickets should be increased to $ 3.00. For example, the
highest Phoenix Roadrunners ticket is $ 14.00. An excellent hockey seat can
be provided to guests and the ACEC staff for $ 3.00.
All guest ticket users should pay the event parking fee even if they are affiliated
with the ACEC.
The ACEC should draft a written policy for the use of these guest tickets. The
policy could incorporate the current administrative procedures, but would set
forth the purpose and objective of these seats for business marketing and the
new fees.
Benefits:
In addition to increasing directly its revenues from business brought through
this marketing effort, the ACEe can increase direct revenues from guest ticket
sales. Based on the 2,314 tickets used during the one- year review period,
assuming that these tickets would have been sold for $ 3.00, the ACEC would
have made an additional $ 4,628.00.
Management comments:
This issue has been recognized, and the available seats will be used more for
marketing in the future. It is difficult to enforce parking on the employees and
Board members who have unlimited access to the grounds parking lots.
Effective August 1, 1993, the ACEC Board approved charging $ 3.00 for the
tickets, but chose not to change parking polices.
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5.7 SUPPORT OF THE ARIZONA N" ATIONAL LIVESTOCK SHOW
Current Situation:
The ACEC supports the Arizona National Livestock Show ( ANLS) by providing
discounts on rental rates and foregoing concessions. These activities are in
addition to providing free parking at ANLS events. ( See Section 4.3: Parking
Revenue Limitations at ANLS.)
The facilities used for the 1992- 1993 Show include all the main Grounds
buildings and the Coliseum. The standard daily rental charges for these
facilities is $ 75,650.00 while ANLS paid $ 25,000.00. Also, the ACEC did not
receive any revenues from outside concessions.
Impact:
The ACEC is forsaking $ 129,775.00 in revenues from rentals and concessions,
during an 8 to 10- day event, which according to the Show's promoters, had
attendance of 125,000 persons at the 1992- 1993 Show. The reductions in
rental is $ 50,650.00. For concessions, the loss is estimated at $ 79,125.00
( each patron spends an average of $ 1.50 on concessions, of which the ACEC
receives $ 0.422).
The total support represents approximately 26% of ANLS's total 1992 budget
of $ 504,150.00.
Proposals:
The ACEC should increase the rental to the ANLS Show.
The ACEC retain the right to obtain a standard concession percentage
commission.
Benefit:
The ACEC would increase its income by an estimated $ 129,775.00 annually.
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Management comments: •• The ACEC is working with ANLS to improve the marketing and profitability of •
the Show. The Show's dates are not good for livestock shows, and nationally, •
livestock shows have been declining in popularity and losing money. ••
It should also be noted that by enacting ARS 3- 1 003. B in 1970, the Legislature •
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payments for educational, agricultural, and mineral exhibits which are in the •
best interest of the state. The Board has traditionally treated the ANLS as such •
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6.1
COST CONTROL OPPORTUNITIES
FAIR ENTRIES COST CONTROL
Current situation:
The Entries Department is the only department devoted to Fair- related work
year- round and its cost has increased for the past nine years. A statistical
summary of the Fair- related work of this department from 1982 through 1992
is presented in Exhibit 31: " Entries Dept Statistics 1982- 1992".
Exhibit 31 shows several trends, namely:
1. A comparison of Total Income and Total Expenses for the Entries
Department shows substantial support from the ACEC. In 1991, the
cost was $ 414,265.24. This cost has steadily increased from
$ 237,758.93 in 1984.
Entry fee income has ranged from a low of $ 14,167.82 in 1985 to a
high of $ 18,295.35 in 1986, and since then has not surpassed
$ 17,000.00.
Premium award and trophy expenses steadily increased every year
between 1984 ($ 89,888.15) and 1992 ($ 133,402.00), with a dip in
1990 ($ 111,102.96). .
Entry fees have covered less than 18% ( since 1989 15%) of premium
awards and trophies.
2. The level of public interest in entries appears to have stabilized. The
number of exhibitors has never topped 9,500 and has remained stable
between 8,000 and 9,000. ( The high numbers for 1991 and 1992
reflect items made at the Fair by fairgoers, for which no entry fees are
paid. These items are not entries in the traditional meaning of the
subject).
The number of exhibits entered has declined since a high of 36,426 in
1982, and although it has been rising since 1989, the number of exhibits
entered has not exceeded 30,000 since 1982.
The number of exhibits judged topped out at 24,029 in 1988, and has
historically remained around 22,000.
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3.
During the past four Fairs, only 75% of the exhibits entered were
physically submitted and judged.
Livestock exhibits are the greatest beneficiaries of the support. The
expenses of premiums awarded to all livestock entries has risen from
$ 51,232.00 in 1982 to $ 61,818.00 in 1992. Over 50% of premium
award and trophy expenses have consistently gone to Livestock and
Junior Livestock entries.
The number of livestock entries has declined. The highest number of
Livestock and Junior Livestock exhibits judged was 3,185 in 1984, and
this number has declined to a plateau of 2,350 in recent years.
The number of all livestock exhibitors has declined from a high of 1,398
in 1982 to 463 in 1992.
The total number of exhibitors and exhibits judged by category between
1982 and 1992 are presented in Exhibit 32: " Entries Dept Total
Exhibitors By Category 1982- 1992" and Exhibit 33: " Entries Dept
Exhibits Judged By Category 1982- 1992". Note the declines in the
categories of Cities, Counties, Livestock, Junior Livestock, and the 4H
Horse Show.
The ACEC management has indicated that entries are a principal
attraction for Fairgoers, especially agriculture exhibits. Agriculture in
Arizona has historically affected every person in the state. The support
of the Entries Department for mining, cattle, cotton and citrus is vital to
Arizona's changing urban society.
A comparison of the annual population of Maricopa County, Total Fair
Attendance and Paid Fair Attendance between 1975 and 1992 is
presented in table form in Exhibit 34: " Maricopa County Population with
Total and Paid Fair Attendance 1975- 1992", and in graphical form in
Exhibit 35. Fair market research surveys show that, on average, 85%
of Fairgoers reside in Maricopa County ( 81 % in 1982; 87.3% in 1983;
85.2% in 1987; 84% in 1989; 88.7% in 1991). While the county
population increased annually between 1975 and 1992, Fair attendance
has leveled off since 1984. Expressed differently, the ratio between
county population and paid attendance has declined from 41 % in both
1984 and 1985 to 32% in 1992. The percentage of Maricopa County
residents attending the Fair has been declining.
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Animal exhibits appear to be low level attractions. A survey taken in
1982 showed that 7% of Fairgoers liked Livestock exhibits best. This
percentage was 5.9% in the 1983 survey. The 1991 Fair Market
Research Study, prepared by Arizona State University, showed that
4.81 % of the 876 respondents indicated that " Animal Exhibits" were
one ' of " the things" they enjoyed the most doing or seeing at the Fair
( 7th of seven choices rated). The 1992 ASU Survey showed that an
average of 10.3% of Fairgoers rated " Animals" as one of the three
favorite things at the Fair.
The ACEC estimates that about 30% of premium awards in dairy cattle,
10% in sheep and 5% in dairy goats go to out- of- state entrants. The'
balance of premiums is awarded to Arizona residents. Junior Livestock
and 4H premiums go to Arizona residents only.
Certain entry categories are restricted. For example, Junior Livestock
and 4H entries are limited to 4H or Future Farmers of America ( FFA)
members. According to the Maricopa County Fair, there are currently
3,204 4H and 1,127 FFA members in Maricopa County.
Some entry categories have high benefits in relation to entry fees.
Photography entrants pay entry fees of $ 6.00 ( domestic) or $ 7.00
( foreign) for up to four prints or slides submitted. Fine arts entrants pay
a $ 5.00 entry fee for each exhibit submitted. For a nominal fee, these
entrants gain the privilege of entering a professionally- sanctioned and
judged international contest, a finely printed post- Fair catalog and mailing
expenses. These contests are for professionals. Following the 1992
Fair, the ACEC printed 1,700 Fine Arts and 1,500 Photography catalogs
at an estimated cost of $ 3,000.00.
The ACEC believes that the annual expenses of its Entries Department
are not out of line with those of other comparable Fairs. Some Fairs, in
fact, pay corporate sponsors to show livestock entries.
Other comparable livestock shows have maintained smaller gaps
between entry fees and premium award expenses. For example, the
Arizona National Livestock Show ( ANLS) received $ 60,720.00 from
exhibitor entry fees and spent $ 75,297.00 in premiums, ribbons and
trophies at the 1991- 1992 Show. For the 1992- 1993 Show, theANLS
expects to receive $ 42,050.00 from cattle, horse, sheep and hog entries
and to spend $ 77,650.00 in premiums, ribbons and awards.
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The Maricopa County Fair is aimed at promoting youth and county
exhibits and emphasizes agricultural and livestock exhibits. The majority
of the patrons are from Maricopa County. An estimated 154,486
persons attended the 1992 Fair.
The Maricopa County Fair received, for the 1992 Fair, $ 12,238.00 in
entry fees and spent $ 17,401.00 in premiums, ribbons and awards. For
1993, the Maricopa County Fair expects to receive $ 10,000.00 from
entry fees and to spend $ 18,200.00 in premiums, ribbons and awards.
At the 1992 Maricopa County Fair, there were 1,250 Livestock and
Junior Livestock exhibitors, 779 agricultural exhibitors and 129
horsemanship exhibitors. There were 2,533 total Livestock and Junior
Livestock entries, 3,289 agricultural entries and 835 horsemanship
entries.
In FY 1992, the Payroll expenses of the Entries Department were
$ 189,615.68 and Premium Awards and Trophies were $ 116,979.70.
These items accounted for 70% of the department's annual expenses.
Impact:
The Entries Department is an increasing cost every year. Many traditional entry
categories have declined significantly during the past eleven Fairs calling into
question the necessity or reasonableness of maintaining many categories, or
retaining the level of entry fees and premium awards.
Proposals:
The ACEC should seek to reduce the Entries Department's current annual costs
or increase revenue by $ 50,000.00. Two areas where savings could be made
' are in Payroll and in Premium Awards and Trophies.
The ACEC should review the necessity of maintaining certain entry categories;
emphasizing certain categories; retaining certain levels of entry fees;
researching the need for different entries ( for example, furniture or vocational
entries); opening or closing categories to certain entrants; abolishing certain
entry categories; terminating certain premiums; enhancing other premiums;
terminating premiums for out- of- state residents; finding sponsors for certain
categories; and educating sponsors, entrants and associations to the needs of
the ACEC.
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A Study Team composed of the ACEC personnel, Arizona Fairs Association
members, County Fair representatives, sponsors and trade associations could
be established to assist with this review.
Benefits:
The ACEC should save $ 50,000.00 of the annual · budget of the Entries
Department. Secondly, the ACEC could be at the frontier of a movement to
improve entry departments nationwide. .
Management comments:
Entries are a distinguishing feature of the State Fair. Entries departments
nationally have been having difficulties in recent years. Livestock entrants are
more difficult to obtain as their costs have risen. The ACEC has been forced
to raise premiums to attract animal entries. Without entries, the Fair may
simply become just another festival.
Space limitations and restrictions on imposing fees on certain entries have
contributed to some of the trends noted above.
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EXHIBIT 31: ENTRIES DEPT STATISTICS 1982- 1992
Year Exhibitors Entered Judged JdgdlEntd Awards FeegAwards All Uvestock Exhibit~ Judged Exhibitors
Fair Total Exhibits Exhibits Exhibits Entry
Fees
Premium Ratio Premiums All Uvestock All Uvestock Total
Income
Total
Expenses Loss
OJ
C>
1982 8,820 36,426 22,109 61% NA NA NA $ 51,232.00 2,839 1,398 NA NA NA
1983 8,698 27,435 22,862 83% NA NA NA $ 50,974.50 3,185 1,282 NA NA NA
1984 8,315 26,164 22,043 84% $ 14,512.79 $ 89,888.15 16% $ 44,515.00 2,768 1,005 $ 18,797.69 $ 256,556.62 ($ 237,758.93
1985 8~~ 76 27,404 23,228 85% $ 14,167.82
