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Food operations in parks and other public spaces
( display item 18)
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• Staff reasons for outsourcing food service in parks
December 17, 2001
To: Economic Development and Parks Committee
From: Shirley Hoy, Acting Chief Financial Officer
Joe Halstead, Commissioner Economic Development, Culture and Tourism
Subject: Request for Proposal # 0613-01-0203 for the Operation of Concession Services for the Parks and Recreation Division
The purpose of this report is to recommend the award of the Request For Proposal (RFP)for the operation of concessions services for the Parks and Recreation Division of the Economic Development Culture and Tourism Department. The agreement will commence May 1st, 2002 for a five year term expiring April 30th, 2007, with the option for renewal for a further five year term, at the request of the Department Head in conjunction with the Purchasing Agent.
Along with improved service levels, more diverse and healthy food choices, and significant capital investment, improved financial return and improvements in net revenue are one of the considerations of this RFP. Based on the submissions being recommended, the proponents’ projected annual rent payable to the City from concessions is estimated to be $140,585. The projected net revenues over a five year period is estimated at $702,925 and $1.4 Million over ten years. Further improvements can be expected as the public sees the improved standards of product offered and level of service resulting in increased sales and additional net revenues. In addition, the proponents will be making a capital investment of approximately $ 1.4 Million, during 2002 and 2003.