Agenda Packets - 2000/03/06 - Laserfiche WebLink

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City of Mounds View Staff Report To: Chuck Whiting, City Administrator From: Bruce A. Kessel, Finance Director Item Title/Subject: Catering at Community Center Date of Report: February 17, 2000 The following is a summary of some of the issues relating to catering at the Community Center. The issues include: 1) Generating funds to offset operating costs at the Community Center; 2) Limiting the City’s liability exposure at the Center; 3) Minimizing wear and tear on facility; 4) Maximizing revenues from each event; and 5) Keeping fees low for users. There are several issues that have opposite goals and as such, conflict with each other. I. Generating funds to offset operating costs at the Community Center. During the planning of the Community Center, my understanding is that the portion of the building including Children’s Home Society, the School District and the Banquet Center was designed to be used to generate revenues to offset the operating costs for the gymnasium, meeting rooms, and teen area. Leases were entered into with Children’s Home & the School District which removed the City from using that portion of the building. Based upon discussions with other cities, it was determined that it would be in the City’s best interest to contract out management of the banquet center. A main component of this contract is that the more successful the banquet center is, the higher the compensation to the banquet manager, therefore, a win-win for both parties. The banquet center generates revenues from several sources including the rental of the space, a percentage of the food and liquor catering, and miscellaneous charges. Based upon a review of other facilities, it was determined that the City’s policy relating to catering should be to receive a percent of the catering, with a minimum guaranteed fee. Demand for space during certain periods of the year and certain days exceeds the available space in the area, and as such, to maximize revenues, it was determined that during peak days of the week and months, the full banquet center would have to be rented (can not rent only a portion of the banquet center) in addition to having a guaranteed minimum catering amount or catering fee. This would maximize our revenue while still allowing us to be competitive with other facilities. To maximize both the number of rentals and the fees earned, users who wish to reserve the facility three or more months prior to a date are required to pay the standard fee. However, if a date is open within three months, there may be lower fees to rent what may have been unused space. II. Liability & Health issues The City’s liability exposure can arise in a number of areas, including food prepared and/or served at the facility, the condition of the facility, and/or acts of the City, its agents, or the general public.