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Home My WebLink About1997 08 25 Regular Item C COMMISSION AGENDA ITEM c REGULAR CONSENT INFORMATIONAL x 8/25/97 Meeting Authorization REQUEST: The Parks and Recreation Department requests that the City Commission approve continuation of the Department Concessions program for Fiscal year 1997-1998 or amend the program to an eight (8) month schedule. PURPOSE: The purpose of this request is to affirm Commission support for continuing this service as being subsidized by less than ten percent (10%) or approximately $9,400.00 for another year trusting the amount of this support will decrease in a reasonably progressive manner or Commission might choose to contract such services or choose to reprogram the Concessions to an eight (8) month format. ISSUE ANALYSIS: . The service is well appreciated by the public to the point a major user group requested the concession be open for simply their fall league registration day. . It is believed that a private contractor could not provide the same quantity and quality of service as is now the "norm" and keep prices and hours of service at such a level and also make a profit. See attached "Concession Research" . It is proposed that this quality of service is so valuable that the subsidy is justified. . Records for the Spring 1997 season show significant'increases in income over the similar 1996 season. See "Finance Director's Summaries" for third (3rd) quarter showing costs and revenues as equal. The factor is that the Little League grew by 15% this year. Page 2 Agenda Item-Concessions August 25, 1997 . The closing of the miniature golf course should save much of the current deficit immediately, . The "Concessions Research" summary sheet attached shows as follows: A. We have one of the three larger concession operations in the area, B. We serve a number of fields and leagues which are among the larger servers in the area. C. All other athletic fieldslleagues serving concessions are contracted. D. All localities provide utilities without direct cost to vendors and income from vendors to the Cities barely covers that cost or even creates a small loss in four of five cases which suggests those concessions, from a City point of view, are at least minimally self supporting. E. None of those concessions are open for all events. If activity is seen by the vendor as low, the service is not provided. F. Our concession serves not only our athletic leagues, but is available to other park users, for City special events on and off site, i.e. Torcaso Park Neighborhood Bar-B-Que, July 4th Celebration, Easter and for summer camps and other programs as we see fit. The others are not. G. Proceeds vs. Costs for 1996 and 1997 show proceeds remaining the same, but costs down $4,000.00, therefore the deficit reduced, This is an indication of efficiency and improvement of operations. H. If we contracted our facility, we do not believe we would get the service we now provide for the following reasons: 1. We now provide 21 different articles for sale, None of the other vendors provide more than twelve. They cannot equal our quality and make a profit so the menu would be reduced if we contracted. 2, Contractors will not open for events without enough activity to create a profit. Page 3 Agenda Item-Concessions August 25, 1997 3, Presently, all private concession prices are same at best and most are higher than ours. . Finally, we could be in the swimining pool business in the foreseeable future. We know that concession operated as well as the one we now have, would create noticeable profits for City use. If we contract now, we might lose that substantial revenue in the future. . All trends measurable show our concession operation is a quality service and is appreciated. It is becoming more efficient and the deficits are decreasing. I can offer the following options: Option # 1 Option #2 Option #3 Status Quo-Self Expanatory Contract entirely-Self Explanatory Eight Month Operation-Follows Option #3-Eight Month Operation: Operations history shown in the Finance Director's Summaries attached indicate we do well in Spring and Fall and poorly in Summer and Winter. Little League provides by far the most support of our concession operation. I believe one way to break even immediately (or show profit) would be to close the concession in June and July and December and January of each year. The down side of this alternative is Polar Bear Adult Softball and summer leagues would not be served. All baseball and soccer (youth) would be fully served. We have substantial use for our Concessions Manager in the off months in other ways and we can do some shifting of personnel to be able to again provide an on- site supervisorlmaintenance person for the greatly improving Trotwood Park. By selecting option #3 now, we are not precluded from going back to year round operation should programming increase to support same, We also suggest that if we select this option we could remove the "No Food or Drink" signs and policy now in force. If we were to do that on a year round basis, City operated or Vendor operated, revenue losses would be assured, Page 4 Agenda Item-Concessions August 25, 1997 RECOMMENDATION: It is recommended that the City Commission approve continuation of the Parks and Recreation Department Concessions Program per status quo or adopt the eight month operations as in Option #3. IMPLEMENTA TION SCHEDULE: Begin new eight month program October 1, 1997 or continue as is or advertise for vendor to begin soon after October 1, 1997. ATTACHMENTS: #1 #2 Finance Director's Summaries Concessions Research Chart COMMISSION ACTION: /agenda48 Concession Research By City August 1997 Alt. Springs Casselberry Lake Mary Longwood Oviedo Sanford Winter Springs # of Concession Sites 6 pool only 1 1 2 4 3 # of Baseball Fields 5 nJa 3 1 4 8 5 # of Softball Fields 4 1 2 4 4 2 #Of Soccer Fields 6 0 0 0 4 8 Concession operated by: Contractor City Contractor Leauges by Contractor Contractor City contract City does Subsidise: All All All All All All All Utilities Utilities Utilities Utilities Utilities Utilities Utilities (Self) City receives? revenues 16% gross 100% $250 mo & $2,500,00 Not $1,800.00 -$9,400 yr (or lease) N/A 10% gross per year Available per year (-opt #3 if higher even) $45,000 Concession open when? Season Season Season Season Season Season Season Play Only Play Only Play Only Play Only Play Only Play Only Play, practices, Special Events Items on menu as % -40% nJa -60% -60% -75% -40% Base here 21 more or less than ours 12 items,18 kinds of items -47 selections: as sample comparable selections Prices Average % more same nJa same 20% more 15% more same Base here or less than ours * Any City Profits? yes nJa No No No No No, Lose How much plus or +$3,000 even Lose $500 Even Lose $9,400 yr minus for loss $2,200 yr or opt #3 even * After $3,000.00 assumed as city subsidize costs for utilities (As is ours even more) CONRESCH.DOC 120000 100000 -20000 CONCESSION STAND PROJECTED FY 97-98 80000 6??oo 40000 III T atal Operating Expenses [J Revenues Over(Under) Expenses 20000 o 1st Qtr. 2nd Qtr. Fiscal Year 3rd Qtr. 4th Qtr. CONCESSION STAND FY 96-97 100000 80000 6??oo 40000 20000 o -20000 1st Qtr. 2nd Qtr. 3rd Qtr. Fiscal Year 4th Qtr. Ii Revenues iii Total Operating Expenses o Revenues Over(Under) Expenses CONCESSION STAND FY 95.96 100000 80000 60000 40000 20000 o -20000 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Fiscal Year E:J Revenues Il!I Total Operating Expenses [J Revenues Over(Under) Expenses 100000 80000 60000 40000 20000 -20000 CONCESSION STAND FY 94-95 o Ii Revenues . Total Operating Expenses o Revenues Over(Under) Expenses 1st Qtr. 2nd Qtr. Fiscal Year 4th Qtr. 3rd Qtr. City of Winter Springs Central Winds Park Concession Stand Revenues verses Expenses Statement October 1,1997 thru September 30,1998 Quarter Quarter Quarter Quarter Fiscal Ended Ended Ended Ended Year to 12/31/97 3/31/98 6/30/98 9/30/98 Date Revenues: (Projected) $18,435 $26,197 $34,929 $17,465 $97,025 Operatina Expenses: (Projected) Salaries - Full Time $6,392 $5,576 $6,490 $5,980 $24,438 Salaries - Part Time $3,421 $3,296 $4,601 $1,216 $12,535 F.I.C.A. Taxes $751 $679 $849 $551 $2,828 Health/Life Insurance $450 $450 $450 $450 $1,800 Workers Compo Ins. $638 $577 $721 $468 $2,403 Pension Expense $447 $390 $454 $419 $1,711 Operating Supplies-Misc(est) $200 $200 $200 $200 $800 Operating Supplies-Food $6,620 $9,217 $11,071 $4,092 $31,000 Operating Supplies-Drink $4,405 $5,657 $10,695 $3,243 $24,000 Janitorial Supplies $0 $45 $0 $135 $180 Repair & Maint-Equipment $69 $272 $160 $0 $501 Utility Services $1 ,130 $850 $1,297 $963 $4,240 Total Operating Expenses $24,523 $27,208 $36,989 $17,716 $106,436 Revenues Over(Under) Expenses ($6,088) ($1,011) ($2,060) ($252) ($9,411) City of Winter Springs Central Winds Park Concession Stand Revenues verses Expenses Statement October 1, 1996 thru September 30, 1997 Projected Quarter Quarter Quarter Quarter Fiscal Ended Ended Ended Ended Year to 12/31/96 3/31/97 6/30/97 9/30/97 Date Revenues: $16,038 $21,501 $30,391 $6,456 $74,386 ODeratina EXDenses: Salaries - Full Time $6,176 $5,387 $6,271 $5,778 $23,612 Salaries - Part Time $3,258 $3,139 $4,382 $1,158 $11,937 F.I.C.A. Taxes $722 $652 $815 $531 $2,719 Health/Life Insurance $450 $450 $450 $450 $1,800 Workers Compo Ins. $613 $554 $692 $451 $2,311 Pension Expense $432 $377 $439 $404 $1,653 Operating Supplies-Misc(est) $200 $200 $200 $200 $800 Operating Supplies-Food $3,719 $5,178 $6,195 $2,277 $17,369 Operating Supplies-Drink $3,864 $4,962 $9,382 $2,916 $21,124 Janitorial Supplies $0 $45 $0 $135 $180 Repair & Maint-Equipment $22 $87 $51 $0 $160 Utility Services $1 ,202 $904 $1 ,380 $999 $4,485 Total Operating Expenses $20,658 $21,936 $30,257 $15,299 $88,150 Revenues Over(Under) Expenses ($4,620) ($435) $134 ($8,843) ($13,764) City of Winter Springs Central Winds Park Concession Stand Revenues verses Expenses Statement October 1, 1995 thru September 30, 1996 Quarter Quarter Quarter Quarter Fiscal Ended Ended Ended Ended Year to 12/31/95 3/31/96 6/30/96 9/30/96 Date Revenues: $14,387 $20,799 $24,847 $14,414 $74,447 Ooeratina Exoenses: Salaries - Full Time $5,856 $5,270 $6,148 $5,270 $22,544 Salaries - Part Time $4,508 $3,580 $5,105 $2,529 $15,722 F./.C.A. Taxes $793 $677 $861 $597 $2,927 Health/Life Insurance $450 $450 $450 $450 $1,800 Workers Compo Ins. $674 $575 $731 $507 $2,487 Pension Expense $351 $316 $369 $316 $1,353 Operating Supplies-Misc(est) $200 $200 $200 $200 $800 Operating Supplies-Food $3,704 $5,330 $7,466 $3,573 $20,073 Operating Supplies-Drink $3,666 $4,094 $8,009 $3,764 $19,533 Janitorial Supplies $36 $22 $0 $98 $156 Repair & Maint-Equipment $0 $193 $350 $0 $543 Utility Services $1,034 $859 $1,177 $1,265 $4,335 Total Operating Expenses $21,272 $21,566 $30,866 $18,569 $92,273 Revenues Over(Under) Expenses ($6,885) ($767) ($6,019) ($4,155) ($17,826) City of Winter Springs Central Winds Park Concession Stand Revenues verses Expenses Statement October 1,1994 thru September 30,1995 Quarter Quarter Quarter Quarter Fiscal Ended Ended Ended Ended Year to 12/31/94 3/31/95 6/30/95 9/30/95 Date Revenues: $10,549 $16,835 $24,747 $18,812 $70,943 Ooeratinq Exoenses: Salaries - Full Time $5,746 $4,969 $5,797 $4,958 $21,470 Salaries - Part Time $3,122 $3,206 $5,287 $3,019 $14,634 F.I.C.A. Taxes $678 $625 $848 $610 $2,762 Health/Life Insurance $468 $468 $468 $468 $1,872 Workers Compo Ins. $576 $531 . $720 $519 $2,347 Pension Expense $345 $298 $348 $297 $1 ,288 Operating Supplies-Misc(est) $200 $200 $200 $200 $800 Operating Supplies-Food $3,377 $6,310 $5,842 $5,529 $21,058 Operating Supplies-Drink $2,848 $2,062 $6,249 $5,149 $16,308 Janitorial Supplies $71 $0 $0 $66 $137 Repair & Maint-Equipment $144 $237 $63 $357 $801 Utility Services $1,021 $795 $1,055 $1,028 $3,899 Total Operating Expenses $18,597 $19,702 $26,877 $22,200 $87,376 Revenues Over(Under) Expenses ($8,048) ($2,867) ($2,130) ($3,388) ($16,433)