CITY OF NORTH LAUDERDALE

PARKS AND RECREATION DEPARTMENT

TO: Mayor and City Commission

FROM: Richard D. Sala, City Manager

BY: Michael Sargis, Parks and Recreation Director

DATE : March 11, 2008

SUBJECT: Report on Sports Complex Concession Stand Operation

Unlike the majority of Cities in Broward County, youth athletic programs in North Lauderdale are currently run by the Parks and Recreation Department instead of private non-profit groups. Prior to 2000, these programs were run by private leagues but due to mismanagement of programs, losing individuals interested in volunteering their time to run leagues and questionable book keeping, the Department took control and has been working hard since then to create new programs and operate them effectively. These programs, which are a part of the Recreation Division Self Supporting 171 Fund, have received numerous overwhelming positive comments from the participants.

The only major issue that we have been facing regarding these programs is the operation of the concession stand at the complex. While non-profit groups can put a great deal of time and effort into running these stands, we are forced to use staff hours to operate them and thus have not been able to dedicate a great deal of time into making our concession stand profitable. On the average, the City is spending about $8,500 per year in staff time to open and operate the stand, purchase food items and track supplies, revenue and expenditures. When you add the staff time expenditure to the cost of purchasing food items and supplies, it is not possible to run these stands in the positive.

In the past, the staff tried to approach various vendors to operate the aquatic center concession stand, but did not get any favorable responses. Recently the staff was approached by a vendor, Taste of Chicago, showing interest in operating our concession stand for Youth Baseball, Youth Soccer, Cricket and any other programs offered at the Sports Complex. Taste of Chicago operates concessions stands in Margate and Coral Springs and has been able to provide decent profits to those organizations. This vendor provides a quality menu featuring the run of the mill food items which would be an improvement from what we’ve been able to provide in the past. As part of the agreement to operate the concession stand, the vendor is willing to give the City 40% of net monthly sales; this is identical to what they pay to other organizations. Along with receiving 40% of the net sales, we will also be able to save by eliminating our staff time and other associated costs, all of which are supported by the General Fund.

In a time of ever tightening budgets, we strongly believe that offering the Concession Stand to a private vendor in exchange for a percentage of the net sales as well as savings in staff time and other associated costs is a true benefit to the Department and City.