Item 10ACity of Southlake, Texas
MEMORANDUM
January 13, 2004
TO: Billy Campbell, City Manager
FROM: Malcolm Jackson, Director of Community Services (x. 1527)
SUBJECT: Approval of the Concessions and Endorsement Task Force Report and
proposed actions
Action Requested: City Council approval of the Concessions and Endorsement Task Force
Report and proposed actions.
Background
Information: The Parks Board, at their July 14, 2003 meeting, approved a
recommendation for the development of a task force to study the concession
and associated endorsement programs involving the City and youth sports
associations. The Concessions and Endorsement Task Force was developed
to study potential opportunities to expand the benefits for both the youth
sports associations and the City through proper management of the
concessions operations and fostering quality endorsement programs. The
Task Force consists of representatives from each of the four youth sports
associations (SGSA, SBA, GSSA, and SCLA), Parks Board members
Elaine Cox and Emily Galpin, Council member Keith Shankland and Mayor
Pro Tem Ralph Evans, and City staff.
During the development of the report, the Task Force reviewed the existing
conditions of both the City's and youth sports association's concessions
operations and sponsorships, analyzed opportunities to enhance the
effectiveness and efficiencies for all entities in regards to concessions
operations, revenue enhancement and service levels, and determined the
existing conditions and proposed existing conditions of each entity.
As a result of the information obtained during the report development
process, the Task Force developed the following set of recommendations.
- Allow for the continuation of the Task Force to develop draft policies and
procedures pertaining to sponsorship and advertising opportunities at City
facilities to include facility sponsorships, portable advertising, and
permanent advertising.
- Develop a Request for Proposal (RFP) seeking a single vendor to provide
concession services for the City of Southlake Parks and Recreation
Department and the youth sports associations (SGSA, SBA, SCLA, and
GSSA) at all existing facilities and programs, as well as inclusion of new
opportunities identified by the Task Force as presently being under served.
Billy Campbell, City Manager
January 13, 2004
Page 2
- In addition to current methods, utilize existing community and City
resources such as the Chamber of Commerce, Southlake Scene recreation
brochure, City web site and cable channel, and Department of Economic
Development to promote team and league sponsorship opportunities for
both the youth sports associations and City recreation programs. The costs,
terms, and policies of team and league sponsorships would remain the
responsibility of the participating organizations (SBA, GSSA, SGSA,
SCLA, and City) but would be limited to sponsor recognition on jerseys,
written material, and temporary banners. Permanent or portable signage
may also be included at the discretion of the participating organization, but
would fall under the stipulations of the future proposed policies and
procedures pertaining to sponsorship and advertising opportunities at City
facilities, compliance with City ordinances, and the review and approval of
the Parks and Recreation Board.
Financial
Consideration: There are no direct financial impacts associated with this report.
Financial Impact: The long term financial impacts to the City will be explored in greater depth
as part of the proposed continuation of the Task Force as it relates to
sponsorships, advertising, and concession opportunities.
Citizen Input/
Board Review: The Parks Board reviewed and recommended (8 -0) at their January 12,
2004 meeting to approve the Concessions and Endorsement Task Force
Report and proposed actions.
The Concessions and Endorsement Task Force consists of two City Council
members, two members from the Parks Board, a representative from each of
the four youth sports associations, and City staff
Legal Review: Not applicable.
Alternatives: Alternatives may include:
■ City Council approval as submitted.
■ City Council discussion and input.
■ City Council decision not to approve as submitted.
Supporting
Documents: Supporting documents include:
■ Concessions and Endorsement Task Force Report.
Staff
Recommendation: City Council approval of the Concessions and Endorsement Task Force
Report and proposed actions.
Concessions and Endorsement Task Force Report
An analysis of concessions and endorsement opportunities for Southlake youth sports
associations, City programs, and public parks and facilities.
Southlake, Texas
December 15, 2003
Concessions and Endorsement Task Force Report
An analysis of concessions and endorsement opportunities for Southlake youth sports associations,
City programs, and public parks and facilities.
The Parks Board, at their July 14, 2003 meeting, approved a recommendation for the development of a
task force to study the concession and associated endorsement programs involving the City and youth
sports associations. Currently, no standardization of systems exists and the City receives no direct
proceeds from concession operations. The Concessions and Endorsement Task Force was developed
under the belief that potential opportunities exist to expand the benefits for both the youth sports
associations and the City through proper management of the concessions operations and fostering quality
endorsement programs. The City Council was briefed on the Task Force in October and members were
invited to participate in the study and review process.
The Task Force consists of Matt Tuggey, Southlake Girls Softball Association; Bea Mask, Southlake
Baseball Association; Peter Gaal, Grapevine Southlake Soccer Association; Joan McGaffigan, Southlake
Carroll Lacrosse Association; Parks and Recreation Board representatives Elaine Cox and Emily Galpin;
City staff members Steve Moore, Ryan McGrail, and Steve Polasek. Council member Keith Shankland
and Mayor Pro Tern Ralph Evans served as representatives from the City Council. While these
individuals comprised the formal task force, a substantial amount of information was provided by other
groups and organizations such as area school districts and cities, as well as from visiting youth sports
association board members.
As a part of the first meeting on October 16, 2003, the Task Force outlined its goals and objectives.
Specifically, the Task Force endeavored to provide an analysis of concessions and endorsement
opportunities for Southlake youth sports associations, City programs, and public parks and facilities. The
Task Force goals were to: 1) review existing conditions as they related to both the City's and youth sports
association's concessions operations and sponsorships; 2) analyze opportunities that may enhance the
effectiveness and efficiencies for all entities in regards to concessions operations, revenue enhancement
and service levels; 3) determine the needs and wants of each entity; and 4) develop a report with
recommendations to the Parks and Recreation Board and City Council.
The Concessions and Endorsement Task Force pursued an aggressive meeting schedule beginning on
October 16, 2003 with weekly meetings scheduled through the culmination of this final report. The Task
Force reviewed the existing sponsorship opportunities of each youth sports association as allowed in their
Facilities Utilization Agreement (FUA) and what conditions actually exist today. Signage sponsorship
opportunities were provided to the Southlake Girls Softball Association (3 per field), the Southlake
Baseball Association (2 per field), and the Grapevine Southlake Soccer Association (2 signs total) as part
of their FUA's. The Southlake Carroll Lacrosse Association has no provision in their agreement for
signage. None of the youth sports associations have actively pursued sponsorship opportunities through
field signage during the last two years.
The City presently has agreements in place with Coca -Cola at both Bicentennial Park and the Southlake
Sports Complex. The Bicentennial Park agreement is for ten years and in general provides Coca -Cola
with exclusive rights for the provision of all beverage products sold and beverage signage within the park.
The City receives a percentage (20 %) of revenue from sales generated by six vending machines placed in
the park, in addition to $100,000 received in year one and $25,000 for each additional year. The
agreement term is from March 17, 2000 through March 17, 2010.
The agreement with Coca -Cola for the Southlake Sports Complex was transferred to the City from the
previous owners upon the City's purchase of the property. The City received no direct payment from
Coca -Cola at that time, but does receive a minimal amount through a percentage (20 %) of revenue from
the vending machines. The agreement term is for fifteen years from July 17, 1998 through July 17, 2013.
The Task Force also identified existing concession services provided by the various entities. The
Southlake Baseball Association (SBA) makes concession items available for games and tournaments in
Bicentennial Park from their designated facility and a portable trailer located near their smaller fields.
Using their designated facility, the Southlake Girls Softball Association (SGSA) also provides
concessions at Bicentennial Park for their games and tournaments, as well as some City special events.
With the spring completion of the concession building at Bob Jones Park, the Grapevine Southlake Soccer
Association (GSSA) began weekend sales of concession items this fall for the first time ever during their
regular season. GSSA has provided sales at some past tournaments using temporary facilities. The
Southlake Carroll Lacrosse Association (SCLA) currently provides no concessions at any of the facilities
they utilize.
City concessions are typically provided in one of two ways. During large special events such as the
Independence Day Celebration in Town Square, outside vendors are brought in to sell hot dogs, turkey
legs, popcorn, etc. During Parks and Recreation programs such as Southlake Saturday Nite and Movies in
the Park, City staff oversees concession sales and provides pre - packaged items such as chips, candies, and
soda. The same holds true for City sponsored athletic tournaments for basketball or track. No concession
services are provided during regular season games for basketball, in -line hockey, flag football, or
volleyball, to name a few.
The Task Force also researched how public entities (cities and school districts) in the area addressed
concessions and endorsement opportunities. A telephone survey of area cities found that many, including
the City of Southlake, are not presently receiving any direct proceeds from use of the concession stands.
There were a few minor variations among some cities to include:
- retaining a small percentage of the gross revenue from concession sales by youth sports
associations
charging a small fee ($50 per month) to the youth sports associations
youth sports association responsibility for 100% of electrical costs
cities bidding concessions to outside vendor and receiving percentage (20 %) of gross
revenue.
In regards to sponsorships, the survey demonstrated that responsibility for obtaining and overseeing
sponsorship opportunities were almost evenly split with some cities reserving that right and others turning
it over to the youth sports associations. Most city- managed sponsorships are directly tied to soft drink
contracts at their various sports facilities.
School districts have typically proven to be more progressive in the pursuit of endorsement and vending
contracts. As a result, their operational information is more complex and difficult to summarize. Some
districts, such as Carroll ISD, have hired marketing coordinators to actively purse agreements with
vendors from an array of industries that provide food, beverages, services, and retail items. The Plano
ISD utilizes an advertising agency to solicit advertisement opportunities at facilities and on their buses.
Upon approval by the district, advertisements are implemented for a six month period at a cost of $500
with the advertising agency responsible for their installation and removal. Athletic facility advertisement
opportunities vary and may be handled through the business office, marketing coordinator, and in some
cases, the athletic director.
The sale of food and beverages at sporting events were typically provided by either the school district's
food services group or by a booster club (band boosters). From the survey information, only Highland
Park ISD contracted with an outside agency, receiving 35% of the net revenue.
After establishing background information consisting of area city and school districts existing conditions,
as well as those within the City of Southlake's youth sports associations and City sponsored recreation
programs, the Task Force set out to identify the existing and proposed additional conditions of each of the
entities (SBA, GSSA, SGSA, SCLA, and City). The conditions, respectively, were based on what each
entity was currently receiving in the form of revenue or service, the requirement that this level be
maintained, and areas where improvements could be achieved but were not mandatory to the present level
of operations. A summary of this information is as follows:
Entity
Existing Conditions
Proposed Additional
Conditions
Southlake Baseball
o Team sponsorships
o Increased revenue
Association
($300
o Facility sponsors
per season)
o Facility enhancements
o Concessions
Revenue
Southlake Carroll
o None
o Increased revenue
Lacrosse Association
o Concessions service
o Concessions revenue
o Team sponsors
o Facility sponsors
o Facility enhancements
Southlake Girls Softball
o Concessions revenue
o Increased revenue
Association
o Team sponsorships
o Facility enhancements
($300 per year)
o Facility sponsors
Grapevine Southlake
o Concessions service
o Increased revenue
Soccer Association
o Increased concessions
revenue
o Team sponsors
o Facility sponsors
o Facility enhancements
Southlake Parks and
o Concessions for TAAF
o Team sponsorships
Recreation
events
o Concessions for in -line
(Basketball /track),
hockey, basketball
programs, and special
leagues, volleyball
events
leagues, adult athletics,
flag football
o Program sponsorships
o Facility sponsorships
o Offset expenditures
relating to new
development and on-
going maintenance costs
of facilities.
Following the assignment of existing and proposed additional conditions, the Task Force identified three
main areas suitable for potential enhancements in revenue and service levels:
➢ Facility Advertising and Sponsorships
➢ Expanded Concessions Service
➢ Team and League Sponsorships
Facility sponsorship and advertising may include: 1) site - specific sponsorships of park facilities including,
but not limited to, athletic facilities, park structures, and other park entities; 2) temporary portable
advertising at various park facilities and events; and 3) permanent advertising on outfield fences,
scoreboards, and structures. Expanded concessions service advocates allowing greater menu varieties
where appropriate and providing service at facilities, programs, and athletic events where none exists
today. Team and league sponsorships suggest expanding this concept to all entities and seeking greater
support from local businesses, corporate sponsors, and community groups.
The Task Force further explored the aforementioned concepts to develop the following set of
recommendations.
➢ Allow for the continuation of the Task Force to develop draft policies and procedures pertaining to
sponsorship and advertising opportunities at City facilities to include facility sponsorships,
portable advertising, and permanent advertising.
➢ Develop a Request for Proposal (RFP) seeking a single vendor to provide concession services for
the City of Southlake Parks and Recreation Department and the youth sports associations (SGSA,
SBA, SCLA, and GSSA) at all existing facilities and programs, as well as inclusion of new
opportunities identified by the Task Force as presently being under served.
➢ In addition to current methods, utilize existing community and City resources such as the Chamber
of Commerce, Southlake Scene recreation brochure, City web site and cable channel, and
Department of Economic Development to promote team and league sponsorship opportunities for
both the youth sports associations and City recreation programs. The costs, terms, and policies of
team and league sponsorships would remain the responsibility of the participating organizations
(SBA, GS SA, SGSA, SCLA, and City) but would be limited to sponsor recognition on jerseys,
written material, and temporary banners. Permanent or portable signage may also be included at
the discretion of the participating organization, but would fall under the stipulations of the future
proposed policies and procedures pertaining to sponsorship and advertising opportunities at City
facilities, compliance with City ordinances, and the review and approval of the Parks and
Recreation Board.
The Task Force recognizes that its work was conducted within a relatively short time frame and that
further research and policy development may still be warranted should direction be provided. The Task
Force is grateful for having had the opportunity to explore the current system and provide general
recommendations which may lead to enhancements in concession services and revenue for the youth
sports associations and the City of Southlake. In the interim period, individual sponsorship and
endorsement opportunities will be reviewed on a case by case basis and subject to Parks and Recreation
Board and City Council approval. The members of the task force extend their appreciation to all those
that participated in the process. Members stand ready and available to address any questions or comments
regarding this report and are willing to move forward with their work to develop detailed policies and
procedures outlining facility sponsorship and advertising opportunities.