TROY — Troy City Council will consider establishing a new concession food and beverage manager and salary at its regular meeting at 7 p.m. today at City Hall.
An ordinance (O-14-2015) to establish the new position was recommended at the parks and recreation committee last week. The manager would oversee all concession operations at Hobart Arena and the Troy Aquatic Park. Hobart Arena’s two-year contract with American Legion Post 43 J.L. Concessions non-profit expires at the end of June. The non-profit paid Hobart Arena $10,800 per year ($825 per month plus event fees) to be the vendor of food and non-alcoholic beverages during the arena’s events.
The committee supported the recommendation of the Troy Recreation Board that all food/beverage concession operations at the Hobart Arena be performed by City staff and recommended that legislation be prepared to amend the salary ordinance to establish the position of Concessions/Food and Beverage Manager at the pay grade of MGT -1 with a salary range of $47,994.95 up to $56,233.02.
At the June 10 meeting, Hobart Arena and Recreation Department director Ken Siler said when the arena was renovated 15 years ago, the department bid out the concessions on a two-year contract. During the arena’s feasibility study, the nationally recognized Bigelow Concessions firm’s study determined the arena could potentially profit from its concession sales and increase the arena’s net revenue by $21,000 after the arena’s renovation are complete.
“As part of this renovation project … the plan is to expand the concessions operations significantly to one, provide a better experience for the consumer and two, potentially to better maximize our profitability from concessions,” said Siler during the June 10 committee meeting.
At the recreation board meeting, Siler provided a spreadsheet which projected the city of Troy’s net profits of concession sales at Hobart Arena in three scenarios:
— $57,000 pre-renovation with the concession sales bid out to outside vendor
— $26,500 net profit during arena renovations, including the salary of a full-time concession manager with in-house profits from sales
— $91,230 net profit post renovation, including the salary of a full-time concession manager, hosting additional events, and implementing a non-profit volunteer program to help staff concessions with a percentage (estimated around 12 percent) of the event’s sales paid to their organization.
The spreadsheet included food and beverage sale projections.
For beer sales: pre-renovation, $50,836 for six alcohol events, including four concerts; $60,000 during renovations based on five concerts; $100,000 post renovation projected for eight concerts and other events at $12,500 per event.
Food and non-alcoholic beverage concession sales based on gross receipts projections:
— $10,800 in sales based on the current monthly flat rate paid by the current vendor
— $100,000 in sales based on number of events being reduced slightly during renovation
— $150,000 in sales based on post renovation with increased number of events based on Bigelow Company study (included in the Crossroads Consulting feasibility study in 2014) with 2013 event and attendance records.
The committee gave its positive recommendation which will be presented to council today. The ordinance will have its first reading.
In other business:
R-29-2105 Increase authorization for N. Market/Piqua-Troy Road project to $806,422.20 will be considered. Emergency legalization is requested. The streets and sidewalks committee met on June 10 regarding the increase in funding. The project was authorized to not exceed $790,300 with $350,000 of the projected funded by the Ohio Public Works Commission. The city was advised that due to less than favorable soil conditions, resulting in instability, increased the need for significantly higher quantities of fill material. The legislation is considered emergency so final payment can be made to the contractor Double Jay Construction.
O-15-2015 Intent to negotiate jointly with other cities regarding Street Lighting Costs will be considered. Emergency legislation is requested.
According to the utilities committee report, recent negotiations have been conducted on behalf of the Miami Valley Communications Council to negotiate jointly with other cities in the region for one price schedule for the next street lighting contract. Cities who intend to be part of the negotiations must sign up by July 15. The city’s current agreement for street lighting expires at the end of 2015. Troy has been one of approximately 17 area communities negotiating the street lighting contract through the MVCC. For the current three-year contract, Troy’s savings in street lighting costs has been estimated to be about $220,000, or about a 19 percent savings. Due to the July 15 deadline, emergency legislation is considered.
Due to the time frame, emergency legislation has been requested.