Swimming Pool Concessions Staffing Copyright 2014
City of Dubuque Consent Items # 18.
ITEM TITLE: Swimming Pool Concessions Staffing
SUMMARY: City Manager recommending approval of the addition of staffing in the
amount of .479 Full Time Equivalent (FTE's) for Fiscal Year 2016 and 1 .44
FTE's in the future budgets for the purpose of operating the concession
stands at Flora and Sutton Pools.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
❑ Pool Staffing Increase Due to Department Run Concessions-MVM Memo City Manager Memo
❑ Staff Memo Pool Concession FTE addition Staff Memo
❑ Previous Council action related to Pool Concessions Supporting Documentation
THE CITY OF Dubuque
UBE I
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Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Pool Staffing (FTE) Increase Due to Department Run Concessions
DATE: December 1, 2015
At the April 6, 2015, City Council meeting City Council approved $38,722 to purchase
concession equipment so the City could begin operating the pool concession stands in
calendar year 2016.
Leisure Services Manager Marie Ware recommends City Council approval of the
addition of staffing in the amount of .479 Full Time Equivalent (FTE's) for Fiscal Year
2016 and 1.44 FTE's in the future budgets for the purpose of operating the concession
stands at Flora and Sutton Pools. It is projected that in Fiscal Year 2017, the City will
have a positive cash flow of $3,580.
1 concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Marie L. Ware, Leisure Services Manager
THE CITY OF Dubuque
UBDgkE
;��-Americ111 aC i I.
Masterpiece on the Mississippi 2007-2012-2013
TO: Michael C. Van Milligan, City Manager
FROM: Marie L. Ware, Leisure Services Manager
SUBJECT: Pool Staffing (FTE) Increase Due to Department Run Concessions
DATE: December 1, 2015
INTRODUCTION
The purpose of this memo is to seek approval to increase in FTE's for FY16 and future
budgets due to the Leisure Services Department operating the pool concessions.
BACKGROUND
In January of 2015, staff developed bid specs for concessionaires to provide concession
service at both Flora and Sutton Pools over the next 3 years. On February 3rd, staff
received one bid from Paul Connors (the person who has done the concessions for the
last four years plus). This bid was for a minimum of$500 per pool or a 5% share of
gross sales (whichever is higher). The last 3-year agreement was for a minimum of
$6,000 or a 15% share of gross sales per year. That bid was rejected.
Recreation Division Manager Dan Kroger asked Aquatics Program Supervisor Janna
Beau to re-bid the service and to reach out to as many other local food businesses
(HyVee, Meyers Cox, etc.) in order to at least receive a second competitive bid. Staff
did communicate with several corporate companies as well as a private individual who
had expressed interest. The bid specs were re-posted as well as sent directly to these
contacts. On the due date, staff again received only one bid from Paul Connors. This
time, his bid was for$1000 minimum per pool or a 6% share of gross sales.
Due to the low bid, staff reached out to Mr. Connors to see if he would accept a 1-year
contract. Mr. Connors did accept a one-year contract for the 2015 pool season. This
action provided staff with a year to develop a new strategy for the pool concessions. At
the April 6, 2015 City Council Meeting, the action to accept the bid for a 1-year term,
purchase the proper equipment with the available CIP funds, and plan for a City run
operation in 2016 was approved by the City Council.
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DISCUSSION
The advantage to operating the concessions stands in-house is there is a greater
opportunity to generate additional revenue for the pool facilities especially in light of no
competitive bids and the low payment by the Ione bidder. The approved Council action
requires additional staff which were not part of the current FY16 Budget when adopted.
Staff has estimated an additional 3,000 seasonal hours for concession workers to run
the concession stands. These additional hours will increase the total FTE's by .479
FTE in FY 16 and 1 .44 in the FY17 and future budgets.
BUDGETIMPACT
Due to the operation of the stands, the budget will be impacted in several line items.
These include concession revenue, payroll (salaries and Social Security), food and
beverage expenses, and supplies. The chart below highlights these additions to the FY
16 and 17 Budget:
Estimated Revnue Budget Number FY16 Projected FY17 Budget
Flora 10034300-51936 $ 11,700.00 $35,000.00
Sutton 10034300-51936 $ 8,400.00 $25,000.00
Total $ 20,100.00 $60,000.00
Estimated Expenses
Salaries 10034300-61030 $ 8,591.00 $28,420.00
Social Security 10034300-61320 $ 657.00
Food *10034300-62642 $ 4,300.00 $ 13,000.00
Beverages *10034300-62649 $ 4,300.00 $ 13,000.00
Supplies *10034300-62668 $ 1,000.00 $ 2,000.00
Total $ 18,848.00 $56,420.00
Net Revenue $ 1,252.00 $ 3,580.00
* Line Items Covered for Start-up in Maintenance CIP#3501890
The CIP #3501890 Maintenance funds totaling $38,722 were approved for this project
and will be used to purchase the new concessions equipment as well as the start-up
food and supplies. Budget Director Jenny Larson has reviewed these potential
expenses and agrees that these CIP funds are an appropriate use.
RECOMMENDATION
I respectfully request the addition of .479 FTE's FY16 and 1 .44 FTE's in the future
budgets for the purposes of operating the concession stands at Flora and Sutton Pools.
Prepared by: Dan Kroger, Recreation Division Manager
Cc: Jenny Larson, Budget Director
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THE CITY OF Dubuque
AH-AmeflcaC"
Masterpiece on the Mississippi 2007.2012.2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Pool Concessions Bid and Alternatives
DATE: March 30, 2015
Leisure Services Manager Marie Ware is recommending acceptance of the latest bid
from Paul Connors to operate the pool concessions. This would be for this next season,
with the City purchasing the appropriate equipment over the next year to transition the
concessions to a City-run operation in 2016.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Y '
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Marie L. Ware, Leisure Services Manager
Jennifer Larson, Budget Director
THE CITY OF Dubuque
4Ame�tcaCky
...........
Masterpiece on the Mississippi 2007 2012.2013
TO: Michael C. Van Milligan, City Manager
FROM: Marie L. Ware, Leisure Services Manager
SUBJECT: Pool Concessions Bid and Alternatives
DATE: March 23, 2015
INTRODUCTION
The purpose of this memo is to provide you with information related to the pool
concessions contract, an update on the bid process, and to offer future alternatives.
BACKGROUND
In January, staff developed bid specs for concessionaires to provide concession service
at both Flora and Sutton Pools over the next 3 years. On February 3rd, staff received
one bid from Paul Connors (the person who has done the concessions for the last six
years). This bid was for a minimum of$500 per pool or a 5% share of gross sales
(whichever is higher). The last agreement was for a minimum of$6,000 or a 15% share
of gross sales. The bid was rejected.
Dan Kroger asked staff to re-bid the service and to reach out to as many other local
food businesses (HyVee, Meyers Cox, etc.) in order to at least receive a second
competitive bid. Staff did communicate with several corporate companies as well as a
private individual who had expresses interest. The bid specs were re-posted as well as
sent directly to these contacts. On the due date, staff again received only one bid from
Paul Connors. This time, his bid was for$1000 minimum per pool or a 6% share of
gross sales.
DISCUSSION
The latest bid of$1,000 minimum per pool equates to a 66% rate decrease compared to
the last two (3-year contracts). There is also a quoted 9% decrease in potential gross
revenue.
Due tothe low bid, staff has reached out to Mr. Connors to see if he would accept a 1-
year contract. This action would provide staff with a year to develop a new strategy for
the pool concessions.
An alternate option would be to reject the bid and run the concessions in-house. There
are two issues that would need to be addressed in order accomplish this task. The first
would be the need to purchase equipment for both facilities. Currently, all equipment is
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owned by Mr. Connors and would be removed if not under contract. Secondly, there
would be the need to hire additional staff to fill the hours to properly operate such
facilities. This new staffing would equate to roughly 2,600 in additional seasonal hours
and $22,321 in payroll (assumes maximum amount of hours possible and 2 staff at
each location). Along with the increase in payroll there would be an increase in product
expenses.
In regards to purchasing equipment, we would propose the total of$38,722 remaining in
CIP#'s 3502369-73210 and 3502370-73210 which is left over from the Bunker Hill Roof
Project. This would be more than enough funding to purchase equipment for both
facilities.
The advantage to operating such a facility in-house would be the potential revenue
generation for the facility as well as the ability to monitor revenue and expenses. In the
past, staff has relied on the reporting of the contractor. Since 2010, the gross sales
reported have been near or over $50,000.
An Improvement level package was also approved in FYI budget process to install
internet access at both pools. This access would allow for the proper POS (Point of
Sale) systems to be purchased and installed at both pools as well. In order to operate
for this initial upcoming season which begins in late May, cash registers could be used
at both pools for the season.
Staff could develop a detailed budget within the next 2 weeks as an estimate on what a
full season could look like under the operation of the City.
In summary, there are really three alternatives/choices for this upcoming season.
1. Accept the latest bid for a 1-year term and re-bid in 2016.
2. Accept the latest bid for a 1-year term, purchase the proper equipment
with the available CIP funds outlined earlier, and plan for a City run
operation in 2016.
3. Reject the latest bid, set a new operating budget, buy the equipment, and
begin a City run operation in May of 2015.
RECOMMENDATION
We recommend alternative #2 for the direction of the concessions operations at both
pools. This alternative will provide staff with the proper equipment to run a quality
operation while also allowing time for planning, budgeting, and installing the best
infrastructure (computers, POS systems, City IT access, etc.).
Prepared by: Dan Kroger, Recreation Division Manager
CC: Jenny Larson, Budget Director
Ken TeKippe, Finance Director
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ORNGINAL
CONCESSION PROPOSALS
LEISURE SERVICES DEPARTMENT
CITY OF DUBUQUE
FLORA PARK SWIMMING POOL PROPOSAL
BASE FEE OF DOLLARS PER YEAR OR
PERCENT OF ANNUAL GROSS SALES, WHICHEVER AMOUNT IS GREATER,
NICHOLAS J.-SUTTON SWIMMING POOL PROPOSAL
BASE FEE OF DOLLARS PER-YEAR OR
PERCENT OF ANNUAL GROSS SALES, WHICHEVER AMOUNT IS GREATER.
@W@W@W@W@W@W@W@
PROPOSAL FOR BOTH POOLS
FLORA: [SASE FEE OF ) - DOLLARS PER YEAR-OR ---
G, Ic PERCENT OF ANNUAL SALES, WHICHEVER AMOUNT IS
GREATER.
00
SUTTON: BASE FEE OF DOLLARS PER.YEAR OR
C, 4) - PERCENT OF ANNUAL SALES, WHICHEVER AMOUNT IS
GREATER,
SIGNATURE
FIRM
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ADDRESS 1'7 ,
TELEPHONE S��P �-- 2 G'/
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