B5: Annual Concession Report Presentation — original pdf

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Austin Parks and Recreation Department Annual Concession Report 2020 Finance Division Contract Compliance Staff Presented by December 2020 Austin City Code § 8-1-73 requires delivery of an annual report to the Parks and Recreation Board and the Environmental Commission providing the following information regarding concessions on Lady Bird Lake Park: Austin City Code • Name and Location • Income and Expenditures • Total Number of Boats Rented • Environmental Concerns 2 Names and Locations Rowing Dock Texas Rowing Center Zilker Zephyr Railroad (temporarily closed) Zilker Café (temporarily closed) Zilker Park Boat Rentals Butler Pitch & Putt Lone Star Riverboat Cruises Austin Rowing Club / Waller Creek Boathouse EpicSUP 3 3 COVID-19 Impact on Concessions March 13 State of Texas Declaration of State of Disaster Concessions modify operations to include distancing, hand sanitizer, etc. March 24 Austin/Travis County Stay Home-Work Safe Order Concessions closed May 1 Open Texas Phase 1 Boating concessions reopen with modified operations May 8 Lone Star Riverboat reopens at 25% capacity limits May 24 Lone Star Riverboat increases to 50% capacity limits June 28 Pause in Open Texas Phases Concessions closed for July 4 weekend and beyond August 15 Park facilities limited reopening Boating concessions reopen; modified operations still in place. Butler Pitch and Putt remains closed to begin renovations. 4 4 FY20 Income, Expenditures, and Payments $2.5 s n o i l l i M $2.0 $1.5 $1.0 $0.5 $0.0 Gross Sales *Business Expenses, IRS Publication 535 $1,411,561 Reported Expenditures Payments to City $1 $653,102 $111,359 $2 $403,855 $328,340 $39,068 $3 $343,588 $165,033 $38,103 $4 $281,591 $423,215 $64,822 $5 $1,467,756 $839,097 $143,031 $6 $2,448,496 $1,850,844 $186,225 $7 $358,344 $238,765 $33,401 5 5 Monthly Revenues FY19 vs FY20 All Concessions (down 16%) $1.6 $1.4 s n o i l l i M $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $0.0 Lone Star Riverboat (down 66%) 1 2 3 4 5 6 7 8 9 10 11 12 Series1 Series2 EpicSUP (up 72%) s d n a s u o h T $120 $100 $80 $60 $40 $20 $0 s d n a s u o h T $120 $100 $80 $60 $40 $20 $0 1 2 3 4 5 6 7 8 9 10 11 12 FY19 FY20 EpicSUP FY19 6 EpicSUP FY20 6 FY20 Revenue vs Average (FY14–FY19) COVID-19 Impact s n o i l l i M $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Average Revenue FY20 Revenue $1,277,359 $1,349,483 1 2 $470,674 $396,512 3 $195,268 $317,524 4 5 6 7 $617,376 $246,063 $1,396,868 $1,360,022 $2,251,672 $2,296,955 $470,468 $332,470 7 7 Capital Improvements Rowing Dock – $41,760 Dock Improvements • Replaced portion of wood and steel substructure and top decking • Added steel boat racks Texas Rowing Center – $492,000 Boathouse / Dock Construction • Added 9,000 square feet of dock space and renovated the remaining wooden dock • Added two 3,000-square-foot boathouses The entire project, when completed at the end of 2020, is estimated at $1.15 million. Total Vendor Investments – $533,760 8 Texas Rowing Austin Rowing Rowing Dock EpicSUP Zilker Park Boat Rentals Boat Inventory Stand-up Paddle Boards (SUPs) Kayaks Canoes Rowing Shells Coaching Boats / Launches Center 179 398 23 148 10 Club 111 64 0 55 10 151 117 23 0 0 26 125 0 0 0 80 70 60 0 0 Total Boats FY20 748 240 291 151 210 Total Boat Inventory by Fiscal Year FY16 | 1456 FY17 | 1794 FY18 | 1694 FY19 | 1597 FY20 |1640 9 Contract Terms Concession Contract Contract Begin End 0 0 0 2 5 0 0 2 0 1 0 2 5 1 0 2 0 2 0 2 5 2 0 2 0 3 0 2 5 3 0 2 0 4 0 2 Zilker Zephyr Railroad Texas Rowing Center Zilker Park Boat Rentals Rowing Dock Austin Rowing Club EpicSUP Lone Star Riverboat Butler Pitch & Putt Zilker Café Interim Period Basic Term Option Executed Option Remaining Holdover 5 2 / 1 5 5 5 5 1996 2000 2006 2000 2012 2013 2015 2019 2021 2020 2040 2021 2022 2023 2020 2025 2029 2031 10 5 2 5 5 5 5 5 5 5 5 5 5 2 1 5 5 2 4 5 2 5 5 10 5 5 # 10 5 5 Texas Rowing Center--180-day holdover, May-October 2020 Austin Rowing Club--one 4-year extension by Council Resolution 20180628-070 10 Contracts and Concession Committee FY20 Recommendations Concession Development Concession Reporting Provide a comprehensive contract and concessions report that includes a plan to increase concessions at park facilities. Report expenditures and revenue on all park concessions outside of Lady Bird (Town) Lake. 11 Concessions Outside of Lady Bird Lake Permit Type Term Permits Issued Cost / Permit Revenue Six month Single Day Six month Six month Single day 35 15 1 5 Commercial Use – Food or Other Specific Park Use Commercial Use – Fitness Trainers (14,018 attendees total) Walsh Boat Landing Launch Permit & Concession (closed for renovation October 2019-May 2020) Commercial Use – Performing Artists TOTAL REVENUE Golf Concessions (4 contracts) N/A N/A $480/month $2,280 $500-$1500 $50 $50/trainer +0.45/attendee $10 N/A $18,127 $7,527 $50 $62,356 $90,340 12 12 Strategic Plan to Increase Park Concessions Integrate concession planning into the Vision Planning process for Implement Long Range Plan recommendations for establishing • • individual parks. concessions. • Refer to previous data referencing community needs and wants for diverse system-wide concessions. • Evaluate concession ideas based on business needs and viability. • Collaborate with PARB working group to engage with communities and explore innovative concessions. • Collaboratively develop criteria for concessions. • Develop, release, and oversee concession solicitations. • Standardize concession contract language. 13 Strategic Plan to Increase Park Concessions PARK PLANNING PROCESS CONCESSION POTENTIAL Walnut Creek Sports Complex Request for Information (RFI) expected December 2020 TBD depending on proposal concepts submitted Walter E. Long Metro Park Vision Plan approved by Council October 2020 John Treviño Metro Park Vision Plan approved by Council October 2020 Boating and paddling Food and beverage Boating and paddling Food and beverage Holly Festival Beach Phase 1A—community outreach TBD through community outreach Seaholm Intake Building Phase 1 design Café possible in Phase 2 (currently unfunded) Zilker Botanical Garden In progress ZBG Conservancy desires opportunities Zilker Metro Park Consultant Team approved by Council August 2020 TBD through community outreach 14 Environmental Commission Recommendations At its November 20, 2020, meeting, the City of Austin Environmental Commission recommended that PARD staff do the following: Marine Waste Disposal Lady Bird Lake Safety Other Concession Considerations   Verify that three years of records have been maintained for entities that pump waste on Lady Bird Lake; include these monthly records in the public record. Include waste pump-out data in both the public record and the Annual Concession Report.   In consultation with City of Austin rescue teams and Watershed Protection Department, review the number of public and private boats typically on Lady Bird Lake and if there are capacity issues, that should be considered. Consider physical, social, and environmental capacity issues when anticipating upcoming solicitations.   Continue working on consistent terms and conditions in concessions contracts to the extent practicable. Provide an update on any new concessions, including the Seaholm Power Plant and the Zilker Park Vision Plan. 15 Marine Waste Disposal State Law Texas Commission City Code Lake Water Protection Program on Environmental Quality (TCEQ) (Austin Water)  Requires permits for boats with an  Staff may inspect any boat or boat on-board toilet.  Permits must be renewed every two years. pump-out facility at any time to determine compliance with state law.  Program staff inspects Lady Bird Lake excursion boats annually during permit application process. PARD  Contract requires Lone Star Riverboat Cruises to include manifests of pump-out activity in monthly reporting. 16 Lake Safety – Boat Count and Capacity Issues Austin Fire Department (AFD) Special Operations (emergency lake response) does not maintain capacity estimates for Lady Bird Lake. AFD stages more crews during peak use periods to increase AFD visibility and reduce emergency response times. Typically, PARD monitors boating activity during peak seasons through concessionaire reports. However, due to COVID-19, concessions were closed during spring break and July 4 weekends and experienced peak rental business during May and August. As this unprecedented high demand was unexpected, PARD did not track rental numbers during these periods. 17 Other Concession Considerations New Solicitations  PARD considers the physical, social, and environmental capacity of the lake by including environmental requirements in concessionaire Requests for Proposals. Consistent Terms and Conditions for Contracts  In collaboration with Corporate Purchasing, we will use a standard contract template for all concession contracts. Contract components include:  Standard contract  Solicitation  Vendor proposal  Standard purchase terms and conditions  Supplemental purchase provisions 18 Public Benefit EpicSUP Butler Pitch and Putt $10,365 in discounts to teachers and veterans, gift cards for local community organizations such as Explore Austin, and board rentals for group events and lake cleanup efforts $4,375 in free lessons and rounds of golf for cancer survivors, partnering with Texas Team Survivor. Austin Rowing Club Rowing Dock $45,216 in fundraising efforts, free equipment use for local schools and community organizations, and discounts to military, first responders, and student groups $38,000 in free Learn to Row programming and RISE (Rowing in School Experience) partnership with Murchison Middle School Texas Rowing Center $105,500 in rowing scholarships, adaptive programs, programs with Austin High School, sponsorships, and charitable events 19 Staff Recommendations Per Austin City Code, § 8-1-73 Not later than the 30th day after receipt of a report by the director of the Parks Department, the board and the Environmental Commission shall make a recommendation to Council regarding: Creation, continuation or termination of a concession The status of each existing concession The issuance of request for proposal for a concession under this division 20