SR-307-004-03
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CARS:BFM:CC:tb Santa Monica,
City Council Meeting March 28, 1989
TO:
Mayor and City council
FROM:
City staff
RECOMMENDATION TO AMEND RESOLUTION 3579 (CCS) ,
SECTION 5 (a) AND (b) TO ALLOW CITY STAFF TO SEEK
AN OUTSIDE COMPANY TO OPERATE CONCESSIONS AT THE
SANTA MONICA CIVIC AUDITORIUM
SUBJECT:
INTRODUCTION
This report recommends that the City Council amend Resolution No.
3579 (CCS) section 5 (a) and (b) to allow the civic Auditorium to
contract for a food concessionaire.
This report further
recommends that the limits regarding types of food sold, outlined
in Section 5 (b), be rescinded.
BACKGROUND
Resolution 3579 (CCS) allows all concessions except food to be
operated by a permittee authorized by the Civic AUditorium
Manager.
Currently the civic Auditorium hires as needed Event Attendant
I's to operate the concession stands. Administrative personnel
orders food and suppl ies , takes inventory, and supervises the
operation.
required.
Catering is performed by outside companies when
Amending Resolution 3579 (CCS) Section 5 (a) and (b) would allow
the civic Auditorium to explore the profitability of retaining an
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outside concessionaire. Current per capita concession revenue
ranges from $.22 to $.98 for the majority of Civic Auditorium
events. Industry standards range from $.02 to $2.22 per capita
for similar sized facilities with the upper end being more
prevalent (Laventhol and Horwath 1988 Exhibition Hall Industry
Report).
A professional concession management company may be able to
increase this source of revenue while taking on the labor and
supply costs. civic Auditorium clients may also benefit from an
expanded menu and additional services.
A Request for Proposal would be issued following this resolution
change and a four month time frame is anticipated to seek an
outside concessionaire.
BUDGET/FINANCIAL IMPACT
The estimated financial impact of contracting out concessions
would be approximately $9,100 savings in direct as-needed and
administrative labor costs and $33,000 in concession supply
costs. There is a high turnover in the Event Attendant I
category. Any employees currently working in the concession
stands can be absorbed in security or on the clean up staff as
attrition occurs. The new concessionaire may also be interested
in employing experienced staff members.
The amount of additional potential revenue will need to be
determined as the dialog with professional companies progresses.
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RECOMMENDATION
City staff recommends that the city council amend Resolution 3679
to delete the words "except food" in section 5 (a). In addition
staff recommends that Section 5 (b) be entirely deleted.
Prepared by:
Barbara Franklin-Moran
Director, Cultural and Recreation services
Carole Curtin
Civic Auditorium Manager
civicstf
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RESOlUT ION NO.
(City Council Serles)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AMENDING RESOLUTION 3579{CCS) TO ALLOW CITY STAFF TO SEEK AN
OUTSIDE COMPANY TO OPERATE CONCESSIONS AT THE SANTA MONICA
CIVIC AUDITORIUM
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
RESOLVES AS FOLLOWS:
SECTION 1. Resolutlon 3579{CCS) Section 5 is amended to read as
follows:
Section 5. Concessions
(a) All concessions shall either be retained by and operated
under the supervision of the Director, or operated by a permittee authorized by
the Dlrector to do so. The Director shall have the nght to contract wlth a
person, or persons, for the use of a conceSSlon, or concessions, including the
sa 1 e of any food 1 tern, on the bas; s of (1) a percentage of gross recei pts; or
(2) a flat monthly or single event rental basis.
(b) All food concessions shall be operated under the
supervision of the Olrector, for and on behalf of the Clty.
SECTION 2. The Clty Clerk shall certify to the adoption of this
Resolution, and thenceforth and thereafter the same shall be in full force and
effect.
APPROVED AS TO FORM:
ROBERT M. MYERS
City Attorney
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