2011-04-06 P & R Packet - Laserfiche WebLink

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distributed, made and sold —with the ability to increase offerings at a later time. These items are an array of beverages, hot dogs, chips, and candy. Food Sold from Concession Stands Minnesota Statutes, § 297A.01, subdivision 3(c)(3)(viii), provides that all food sold for immediate consumption from concession stands is taxable. Potential Distributors Sam's Club The first purchase site that was evaluated was the Sam's Club in White Bear Lake. This store allows the City to place an order online for pickup. City staff would simply place an order sometime during the week with staff picking up the order the next day and delivering it to the Laurie LaMotte Memorial Park site. The benefits of this method include greater access to inventory and a limited amount of delivery costs. The potential issues with this distribution method are finding staff time to initiate the purchases and delivering the product. Approximate cost for Soda = $.28 per can This is the method the City of Blaine utilizes —Nate 763 - 785 -6151. The City of Blaine operates one concession stand at their new lakeside beach. The concession stand is operated by one individual and managed by their Park and Recreation Department. They sell only packaged goods — gatorade water, pop, and candy all of which are purchased at Sam's Club. City staff purchases and delivers the goods. Their hours of operations are 12 -6 everyday during June through August. They estimate that they spent $1800 and had revenue of $4100. Direct Buy - Coke On 3/25/11 staff met with a representative from Coke. Three options for distribution were discussed — fountain pop, cooler with pop, and a pop machine. If the City were to upgrade the concession stand room the cooler distribution method would work well. Coke would allow the city to use a branded cooler free of charge and deliver the needed product. The pop machine alternative would be a bare bones approach— offering only beverages with limited profit potential. With the pop machine option, Coke would take care of inventory and money management. The fountain pop option was discouraged because of the setup time involved along with the unknown demand factor. Approximate cost for Soda = $.425 per can Direct Buy - Watsons Ice Cream Kevin Mattson 763 - 286 -6602 They provide freezer and ice cream products. Direct Buy - Indian Head Foods – Hot dogs and buns, Brett Degainer 612 - 716 -0210 Elizabeth Brouse of Andover 763 - 767 -5100 Customer Base The latest information provided to City staff was that baseball games would played M -TH, with the possibility of playing all seven days of the week. The hours of these games are 4 to 9:30. Minimum estimates are 70 players / 100 parents for a total of roughly 170 visitors to the park each night. Regardless of how exact the estimation is for park visitor's demand for concession products is difficult to quantify. That said, a preliminary pro -forma financial indicates the operation should at the very least be able to breakeven from an operations stand point. Employees and Hours of Operation City staff anticipates hiring two individuals to split time running the operation. These individuals will operate the concession stand and operate a simplified accounting /inventory scheme. For example, each night a tally of what was sold will be reconciled to cash received. Also, each night the employees will drop off money received into the City Hall utility lock box.