HomeMy WebLinkAbout1999 10 25 Regular Item A
COMMISSION AGENDA
ITEM A
10/25/99
Meeting
Consent
Informational
Public Hearing
Regu~ar X
MGR DEPT C CY
\uthorization
REQUEST: The Parks and Recreation Department is requesting the City Commission to
consider asking for proposals from the private sector regarding the Parks
and Recreation Department's concession operation.
PURPOSE: To review the operation of the Parks and Recreation Department's
concession operation and receive direction from the City Commission.
APPLICABLE LAW AND PUBLIC POLICY:
N/A
ISSUE ANALYSIS:
· The Parks and Recreation Department's concession operation is a quaDity operation. It
has a Concession Manager, Bonnie lIershelman who has done an outstanding job for
five (5) years providing service to olllr citizens. The concession operation has accurately
accounted for all funds collected. It has not restricted its menu to high profit items and
charged exorbitant prices. It has always been fully stocked and has opened for even
small events to provide a good service to the public. The facility is clean and orderly
and passes all government and staff inspections.
. The Parks and Recreation Department concession operation increased its total
revenues from $65,320.00 in 1998 to $82,370.00 in 1999, which is a $17,050.00 increase.
Page 2
Agenda Item-Concession Operations
October 25, 1999
. The concession operation has continued to show an operating loss over a five (5) year
period:
1995
1996
1997
1998
1999
Revenues
Expenses
+- Dollars
$66,302.
$83,284.
($16,982. )
$69,577.
$87,979.
($18,403.)
$75,150.
$84,081.
($ 8,931.)
$65,320.
$78,605.
($13,285.)
$82,370.
$95,314.
($12,944.)
Additionally, the concession operation lnad an inventory at fiscal year end of $6.437.00.
· The Parks and Recreation Department can take further measures to reduce the
operating loss by allocating more of the Concession Manager's time to parks
maintenance functions, close the concession entirely during slow months (January,
June and July) and purchase minimal food and drink supplies near the end of the fiscal
year. However, it is staff opinion that it may still show an operating loss.
· The cities of Altamonte Springs, Casselberry, Lake Mary, Sanford, Longwood and
Seminole County all contract out to the private sector their Parks and Recreation
Department's concession operations. Oviedo went to a city employee Concession
Manager in July of 1999.
. The Parks and Recreation Concession operations vary from 8% to 22% of gross sales
depending on location, provided equipment and utilities. All governmental entities have
concerns regarding quality and variety of products and consistency of hours of
operation with their contracted out concession operations.
. Should the City Commission elect to privatize the Parks and RecreatiolIl Department's
operation, the budgetary net savings could be as follows: (based on 1999 expenses)
Salaries/Benefits Full-Time
Salaries/Benefits Part-Time
Operating Supplies/Misc.
Operating Supplies/Food
Operating Supplies/Drink
Janitorial Supplies
TOTAL
$26,679.
$13,497.
$ 3,843.
$22,732.
$23,320.
$ 254.
$90.325.
Page 3
Agenda Item-Concession Operations
October 25, 1999
Projected Revenue
($-82,370.00)
Projected Revenue from private sector
If 20% of gross sales
$ 16,474.00
Concession Stand Operational Savings
$ 24.429.00
The budgeted Concessions Manager's position would be converted to a maintenance
position which is a needed position in light of the increased! facilities and maintenance
needs of the Parks Improvement Program in 2000.
Also, budgeted for Fiscal year 2000 is the new soccer concession stand equipment, in the
amount of $20,960.00. This equipment mayor may not be purchased depending on RFP
negotiations.
FUNDING:
No funding required for RFP.
RECOMMENDATION:
Staff is recommending that the Parks and Recreation Department be
authorized to request proposals for possible privatization of concession
operations.
IMPLEMENTATION SCHEDULE:
November 1, 1999
November 15,1999
December 6, 1999
RFP sent Oint
RFP's reviewed
RFP recommendation to City Commission
ATTACHMENTS:
Attachment #1-
Concession Stand Operating Statement
Attachment #2-
Concession Operations Survey
COMMISSION ACTION:
Agenda88
CITY OF WINTER SPRINGS
CONCESSION STAND-
OPERATING STATEMENT
FOR FY 95-99
Year
Ended
9/30/95
Year
Ended
9/30/96
Year
Ended
9/30/97
Year
Ended
9/30/98
Year
Ended
09/30/99
Revenues: $66,302 $69,577 $75,150 $65,320 $ 82,370
Operating Expenses:
Salaries/Benefits - Full Time $21,617 $22,566 $23,397 $24,229 $ 26,679 *
Salaries/Benefits - Part Time $16,264 $17,473 $14,740 $9,697 $ 13,497
Operating Supplies-Mise $3,200 $3,300 $3,370 $3,495 $ 3,843
Operating Supplies-Food $21,058 $20,073 $16,781 $15,985 $ 22,732 **
Operating Supplies-Drink $16,308 $19,533 $21,218 $20,480 $ 23,320 **
Janitorial Supplies $137 $156 $100 $48 $ 254
Repair & Maint-Equipment $801 $543 $374 $415 $ 533 ***
Utility Services $3,899 $4,335 $4,100 $4,256 $ 4,455
Total Operating Expenses $83,284 $87,979 $84,081 $78,605 $ 95,314
Revenues Over (Under) Expenses ($16,982) ($18,403) ($8,931 ) ($13,285) $ (12,944)
*
NOTE: CONCESSION MANAGER'S SALARY/BENEFITS IS STA TED AT 80% OF TOTAL AMOUNT.
PRIOR YEAR INFORMA TlON HAS ALSO BEEN ADJUSTED TO REFLECT THIS PERCENTAGE.
**
INVENTORY A T FISCAL YEAR END AMOUNTED TO: $6,437.00
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REPAIR & MAINTENANCE-EQUIPMENT IS ESTIMA TED.
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SEMINOLE COUNTY/CITY PARKS & RECREATION
CONCESSION OPERATIONS SURVEY
CITY /COUNTY Does your city contract its
concession services? If yes at
what annual rate?
ALTAMONTE SPRINGS Yes; 8% - 22%
CASSELBERRY Yes; $2,500.00 - $3,000.00
LAKE MARY Yes; $3,500 or 1001<> - 20%
which ever is greater
LONGWOOD Yes; $2,500.00
OVIEDO No; City Runs
SANFORD Yes; $1,800.00
WINTER SPRINGS No; City Runs
SEMINOLE COUNTY Yes' 15%
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