Item 18 - Appropriation of Fund for Poway Community Swim Center Concession AGENDA REPORT SL%IMARY
TO: Honorable N~ayor and Members of the City Councn
FROM: James L. Bowersox, City Mana~
INITIATED BY: John D. Fitch, Assistant City Manager~)~
~ ~N ~_...--~
Robert L. Thomas, Director of CommunRy Services "/~.-~
James D. Bentz, Community Services Manager '._z~-
Greg Sundberg, Recreation Supervisor
DATE: April 18, 1995
SUBJECT: Appropriation of Funds for the Poway Community Swim Center Concession
ABSTRACT
The City Council has requested that staff assess alternatives for the operation of the
concession at Poway Community Swim Center. The alternative of providing vending
machines in the current concession building is recommended by staff. It is recommended
that the City Council appropriate $5,000 from Unappropriated General Fund Balance to
modify the existing concession building to be used as a vending machine concession.
ENVIRONMENTAL REVIEW
This item is not subject to CEQA review.
FISCAL IMPACT
An appropriation of $5,000 would be needed.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council appropriate $5,000 from the Unappropriated
General Fund Balance to modify the existing concession building to be used as a vending
machine concession.
ACTION
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- AGENDA REPORT
CITY OF POWAY
This report is included on the Consent Calendar. There will be no separate discussion of the report prior to approval by the
Cit~ Council unless memDers of the Council. staff or public request it to be removed [rom the Consent Calendar and
discussed separately IF you wish to have this report pulled for discussion, please fiji out a slip indicating the report number
and give it to the Cit~ Clerk prior to the beginning of the Cit~ Council meeting.
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Mana~
INITIATED BY: John D. Fitch, Assistant City ManagerC~~'~
Robert L. Thomas, Director of Communit~ Services~__~,~
James D. Bentz, Community Services Manager-~F~,~E~-
Greg Sundberg, Recreation Supervisor
DATE: April 18, 1995
SUBJECT: Appropriation of Funds for Poway Community Swim Center
Concession
BACKGROUND
In March 1994, bids were solicited for the operation of the concession at the
Community Swim Center. The concessionaire who had provided services for the
past two years declined to continue operation of the concession and removed
his equipment.
Bids were solicited from commercial vendors and local nonprofit organizations.
The City did not receive any bids for the concession operation.
The City Council requested that the staff assess alternative methods for
providing concession services at the swim center.
FINDINGS
Staff has analyzed the following alternatives for operating the concession at
the Community Swim Center:
Alternative 1
Purchase necessary equipment to operate the concession using City funds and
seek bidders to operate the concession.
One of the problems associated with the operation of the concession has been
concerns expressed by potential bidders that the building is an empty shell
with no facilities provided. The alternative of the City purchasing equipment
ACTION:
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Agenda Report
April 18, 1995
Page 2
and essentially having the vendor use the City's equipment for selling to the
public has been discussed. The cost of purchasing refrigerators, freezers,
ice machines, and other equipment would be approximately $5,000. The issue of
who is responsible for needed repairs and replacement of items is a
disadvantage to Alternative 1.
Alternative 2
Operate the concession through the Community Services Department.
The concept of the City operating the concession by using City staff would
cost $5,000 in start up costs. This figure does not include inventory and
staff salaries. Historically, the concession has not produced a large amount
of revenue. Alternative 2 would probably not generate enough revenue to cover
staff and inventory costs.
Alternative 3
Go back out to bid and solicit vendors throughout San Diego County.
Alternative 3 has been discussed and there has been little interest. The cost
of insurance and start up costs are high and this has discouraged the
nonprofit groups from bidding. The issue of when the concession would be
allowed to operate has been a problem in the past. Conflicts occurred in the
past when nonprofit groups wanted to operate their own concessions during swim
- meets and Pony Colt operated a concession on the ball field.
Alternative 4
Modify the concession and install vending machines through a vending machine
company.
Alternative 4 would provide a year-round concession at little cost to the
City, and would provide a convenient place for the public to purchase snacks.
The concession would essentially be a self-serve stand and provide prepackaged
hot and cold food items and beverage dispensers.
After analyzing the various alternatives, it is recommended that Alternative 4
be pursued and the concession be modified and vending machines installed.
Bids would be solicited to provide vending machines in the swim center
concession which would dispense 1) hot beverages (coffee, hot chocolate, and
soup), 2) ice cream, popsicles, and other cold food items, 3) a soft drink and
juice dispenser, 4) and snack machines with chips, candy bars, and other food
items not requiring refrigeration.
The vendor would be responsible for restocking and all maintenance on the
machines. A change machine would also be provided by the vendor.
The City would charge a percentage of revenue on the income generated by the
_ vending machines. Current revenue from one snack machine and two beverage
dispensers at the swim center generated $1,181 over a six month period. It is
anticipated that revenue from installation of vending machines would generate
in excess of $3,000 during the first year. This amount is more than received
by the City during the time a concessionaire operated the concession.
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Agenda Report
April 18, 1995
Page 3
In order to install vending machines in the concession building, certain
modifications are needed. A commercial steel service door on the swim center
side,replacing the existing 8' window, would need to be installed. With
additional electrical work, it is estimated that the project would cost
$5,000.
By installing vending machines at the Community Swim Center, patrons would be
provided food service at a minimum risk and cost to the City.
ENVIRONMENTAL REVIEW
This item is not subject to £EQA review.
FISCAL IMPACT
Appropriation of $5,000 would be needed.
ADDITIONAL PUBLIC NOTIFICATION AND CORR£SPONDENCF
None.
RECOMMENDATION
It is recommended that the City Council appropriate $5,000 from the
Unappropriated General Fund Balance to modify the existing concession building
to be used as a vending machine concession,
JLB:JDF:RLT:JDB:GDS
APR 18 1995 ITEM 18
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