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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.