Concession stand overhaul coming at City facilities

Coun. Martin Ring said some of the concessions have become more of a service that have come at a cost to the various locations. In the case of the 7th Hole Concession, the golf course’s users pay for the concession’s loss.

“That’s not absorbed by the taxpayers of the city, that’s absorbed by the users that use the facility. The fees are based on an operating loss of $14,000. We’re going to recover it through the user fees,” Ring said.

The City has tried to adjust the hours of operation of the 7th Hole Concession, Ring said. That, however, results in the community services department fielding complaints about the limited hours of operation.

“Well, it’s not really making us any money. Should we really have it open? [The] 7th Hole Concession is just one example where the liquor sales — that’s not us.”

The concession is operated by the City, but the revenues from the biggest money generator, the liquor sales receipts, go to the Prince Albert Golf and Curling Club. The club holds the liquor licence, and therefore retains the revenues.

According to Ring, with the liquor sales component factored in, the concession would probably make money.

A report written by the City’s recreation manager Derek Blais is recommending that the operation of the concession be terminated and the City negotiate an agreement with the Prince Albert Golf and Curling Club that would grant the club exclusive concession rights for a percentage of sales.

The club would, according to the report, continue to sell concessions via a cart service.

Among the other recommendations put forward by the report is to purchase and install 10 cash registers at the Art Hauser Centre. Over the course of four budget deliberations, between 2010 to 2013, the suggestion that the City pay $50,000 for the new point-of-sale machines was squashed.

This past January, the concession implemented a manual tracking system, but that “compromised customer service” according to Blais’ report.

The department received a revised quote for $45,000 for the 10 cash registers. The Art Hauser Centre, which has the largest concession operation of all City facilities, is the only one without point-of-sale machines.

Blais’ report also suggests the City tender a few of the contracts that are coming due this year: one for supplying soft drinks, another for automated teller and vending machines, and another for the supply of nachos, popcorn, slush and coffee products.

His report also recommends that the concession menus be adjusted and a tender for supplying and delivering be tendered for a one-year term.

Additionally, Blais recommends ending the current agreement with the Prince Albert Minor Softball Association Inc. for operating the Prime Ministers’ Park concession. Along with this, the Minor Softball Reserve would be renamed the Prime Ministers’ Park Improvement Reserve and the concession’s profits would fund the reserve.

Lastly, he recommends that the City create a permanent concession operation at the Prince Albert Municipal Airport.

Mayor Greg Dionne disagrees with the idea of putting a permanent concession at the airport. This was one of many points he took issue with during the discussion.

Dionne instead advocated for the increased use of vending machines, including at the airport. At the Art Hauser Centre, he said many of the items sold in the vending machines were also on the concession stand’s menu.

“If we can sell them in the vending machine, then take them off our menu,” he said.

The mayor is calling for a serious look at the City’s concessions and then that they make some “tough decisions,” whether they be manned concessions or go the vending route.

The City currently receives 40 per cent of the revenues from candy and toy vending machines and 30 per cent of the revenues from game vending machines with prizes. It also receives $1.25 for every ATM transaction in the facilities.

Administration and members of council now plan to hold a strategic planning session to discuss Blais’ recommendations.

Speaking on behalf of the community services department, director Jody Boulet welcomed the meeting with council and conceded that there are changes that need to be made.

“We recognize that. We’ve heard it through the budget, we’ve heard it on different council items that have come up on the agenda that we have to address the question whether or not this is going to be a service or profit centre and certainly we’re hearing some linkages to it being a profit centre, which we have no problem with.”

2014 concession budget review (budgeted to actual profit):

7th Hole Concession: Budgeted = $450.00 Actual = ($14,733.00)

Alfred Jenkins Field House: Budgeted = $1,090.00 Actual = $598.00

Art Hauser Centre: Budgeted = $42,320.00 Actual = $50,694.00

Dave G. Steuart Arena: Budgeted = $9,690.00 Actual = $22,377.00

Kinsmen Arena: Budgeted = $17,390.00 Actual = $14,488.00

Kinsmen Water Park: Budgeted = $20,540.00 Actual = $1,886.00

Prime Ministers’ Park: Budgeted = $0 Actual = $11,762.00

Totals: Budgeted profit = $91,480.00 Actual profit = $87,072.00

tjames@panow.com

On Twitter: @thiajames

by Thia James

Concession stand overhaul coming at City facilities

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