McAleece Concession Operation
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MEMORANDUM
March 28, 2005
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: McAleece Concession Operation
Leisure Services Manager Gil Spence is recommending City Council approval to create
seasonal positions to allow the City of Dubuque to operate the concession stand at the
McAleece Park and Recreation Complex. In the past, the concession operation was
contracted to private individuals or groups and the City has received a return between
$12,000 and $15,000 annually. The only bid received this year called for only $7,500 to
be returned to the City. It is believed that if the City operates the concession stand, a
conservative estimate of profit will be $13,517.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
;11J ({>l.hlL
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Gil D. Spence, Leisure Services Manager
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MEMORANDUM
March 28, 2005
TO: Michael C. Van Milligen, City Manager
FROM: GiI D. Spence, Leisure Services Manager,
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SUBJECT: McAleece Concession Operation
INTRODUCTION
The purpose of this memorandum is to request City Council approval to create seasonal
positions to allow the City of Dubuque to operate the concession stand at the McAleece
Park and Recreation Complex.
BACKGROUND
Since the complex opened eighteen years ago we have contracted the operation to
private individuals or groups. Each of the six, three-year agreements has returned to
the City between $12,000 and $15,000 annually. The last agreement returned $15,000
annually and those funds helped offset the cost of operating the adult softball program.
DISCUSSION
The only bid we received this year called for $7,500 to be returned to the City. When
the FY 2006 budget was prepared we thought the amount might go down so we
estimated $13,000 as revenue from the concession operation. This would result in a
$5,500 budget shortfall or would mean the softball entry fee would have to be increased
an additional $16.00 per team to cover the loss.
Recreation Division Manager Pat Prevenas explained this situation during our budget
hearing with the City Council and that we were studying the possibility of operating the
stand ourselves. We have determined we need to do so as a means to generate the
needed revenue. We have generated a budget that will result in a profit of $13,517,
close to the original budgeted amount. We believe this is a conservative budget and
that profits will exceed $13,517.
more
McAleece concession operation, page two
To operate the concession stand we need to hire a Snack Bar Manager (500 hours) and
Concession Worker II (600 hours). There will be one snack bar manager but may need
two or three people to cover the concession worker hours.
Attached are revenue and expense sheets that outline the concession operation budget.
There will be startup expenses in FY 2005 that are not included in this budget. Those
expenses would be $5,000 for equipment purchases.
ACTION REQUESTED
The action requested is for the City Council to approve the additional seasonal positions
and budget for the City to operate the concession stand at the McAleece Park and
Recreation Complex.
GDS:et
attachments
FISCAL YEAR 2006
(
REVENUE
1. Department and Division Name 2. Activity Name and No.
Leisure Services I Recreation Division McAleece Concessions
Line Item Description Amount Explanation
44411 Beer $28,000 Sale of beer sold at the
concession stand
44412 Food 11,000 Sale of food sold at the
concession stand
44419 Beverages I ice 11 ,000 Sale of non-alcoholic
beverages and ice sold
at concession stand
TOTAL $50,000
G\EILEEN\MS-WordlBudgel\2006\McALEECE CONC REVENUE.doc
BP-2B - City of Dubuque
FISCAL YEAR 2006
Maintenance level Budget Justifications
1. Department and Division Name 2. Activity Name and No.
Leisure Services I Recreation Division McAleece Concessions
3. Maintenance Level Expenditure Detail
Line Item Description Amount Explanation
61030 Seasonal employees $ 9,696 From form BP-1 A
61310 I.P.E.R.S. 307 From form BP-1A
61320 Social security 742 From form BP-1A
61430 Worker's comp (estimate) 318 From form BP-1A
62247 Dram Shop Insurance 1,620
62611 Machinery I equipment maintenance 300 Maintenance of
concession equipment
62642 Food products 5,000
62643 Beer products 11 ,500
62649 Beverages I ice 5,500 Beverage products and
ice
62664 License fees 500 Food and alcohol
permits
62671 Operating supplies 1,000 Napkins, cups,
cleaners, et cetera
TOTAL $ 36,483
G:\EILEEN\MS-WordlBudget\2006\McALEECE CONC BP-20 FRM.doc
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