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07/10/2012 05 Airport Management Options Y i . :1. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of: July 10, 2012 ITEM TITLE: Airport Management Options -- Presentation by Tony O'Rourke SUBMITTED BY: CONTACT PERSON /TELEPHONE: SUMMARY EXPLANATION: Resolution Ordinance Other (specify) Contract: Mail to: Contract Term: Amount: Expiration Date: Insurance Required? No Funding Phone: Source: APPROVED FOR City Manager SUBMITTAL: STAFF RECOMMENDATION: BOARD /COMMISSION RECOMMENDATION: ATTACHMENTS: Click to download ❑ expanded year-round service MEMORANDUM To: Honorable Mayor and Members of the Yakima City Council From: Tony O'Rourke, City Manage Date: July 5, 2012 RE: Airport Management Options The government is not, and should not be a monopoly. Every service government provides can, and is, being provided by the private or non - profit sector. To ensure the public that the City is providing the best service at the optimal price requires routine competition. Unfortunately, most cities mistakenly outsource services in lieu of competing with the private or nonprofit sector. Outsourcing presumes government simply cannot compete, and therefore, the service is contracted to a non - government provider. I am a proponent of "managed competition." Managed competition consists of subjecting government services to competition. Much like the request for proposal process, government services are opened to a formal bid process. Both private, nonprofit, and the existing government service providers compete for the right to provide the government service. In my past experiences, I have subjected city services, ranging from fleet management, recreation facilities, performing arts centers and capital improvements to managed competition In every instance, whether the current city provider or a non - governmental provider prevailed, the public benefited from lower costs and improved services. To that end, I would propose you consider requesting the Airport Board of Directors to consider a "managed competition" of the airport operations. This will enable the City, County, and Airport Board the opportunity to solicit multiple proposals on how to best manage and maximize the assets of the Airport. The City already has a track record of contracting for management services at the Convention Center and Capitol Theatre, as well as, catering services at the Convention Center. The Airport would be an excellent candidate to initiate the managed competition process in the City of Yakima.