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Home My WebLink About2011-01-19 PACKET 04.I.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 01/19/2011 PREPARED BY Administration Joe Fischbach ORIGINATING DEPARTMENT STAFF AUTHOR COUNCIL ACTION REQUEST Consider Approving the River Oaks Golf Course and Cottage Grove Ice Arena Employee Incentive Program. STAFF RECOMMENDATION Approve the River Oaks Golf Course and Cottage Grove Ice Arena Employee Incentive Program. BUDGET IMPLICATION $ $ BUDGETED AMOUNT ACTUAL AMOUNT FUNDING SOURCE ADVISORY COMMISSION ACTION DATE ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ❑ ECONOMIC DEV. AUTHORITY REVIEWED APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS 0 MEMO /LETTER: Memo and attachment from Joe Fischbach dated 01/14/11 ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS l City Administrator Date COUNCIL ACTION TAKEN: M O APPROVED ❑ DENIED ❑ OTHER (M CITY OF COTTAGE GROVE MINNESOTA To: Honorable Mayor and City Council From: Joe Fischbach, Human Resources Coordinator Date: January 14, 2011 0- Subject: River Oaks and Ice Arena Incentive Program Background The City has offered an incentive program at River Oaks whereby employees are financially rewarded if they bring in a golf tournament and /or banquet facility event. In the attached policy are the guidelines of the program. We have had 5 employees bring 6 events to River Oaks over the past 2 years. We are proposing that this program be expanded to include the Cottage Grove Ice Arena as well. Employees would be financially rewarded for bringing in someone who would rent at least 5 hours of ice and /or purchase advertising space at the arena. Currently, no regular full -time employees at River Oaks are eligible for the incentive program. It is seen as part of their job duties to help increase revenues for the facility. We are proposing the same arrangement for the ice arena: no regular full -time employees or the regular part -time Office Clerk II would be eligible for incentive pay related to ice rental or advertising. Recommendation Approve the River Oaks Golf Course and Cottage Grove Ice Arena Employee Incentive Program. Arena Employee Incentive Program Thank you for taking part in our incentive program. The incentive program is a "bonus" program open to all City of Cottage Grove employees (with exceptions) who bring to River Oaks Golf Course and /or the Cottage Grove Ice Arena (Arena) an additional revenue stream. Employees who bring additional revenues to River Oaks Golf Course and /or the Arena will be rewarded with additional cash income for themselves. The incentive program is strictly an optional program. Our Goal To increase sales /revenues for River Oaks Golf Course and /or the Arena and to reward an employee who brings that additional sales /revenues. Strategy Green fee incentives are based upon golf group outings. Banquet incentives are based upon total revenues less sales tax, gratuity, and beverage sales. Ice rental is based on bulk ice rental purchases of 5 hours or more. Arena advertising incentives are based on net income. Incentive Program Rules for Green Fees • All outings must be booked with the Golf Course Manager. Outings must be booked a minimum of (4) days prior to scheduled day of play. • Employee (him /herself) does not count in total player count. • Outings booked /completed for incentive program must have not played in prior years. • Changing of an outing name (from prior years) does not constitute new outing. • All incentive rewards will be noted on payroll. • Golf Course Manager, Golf Course Superintendent, Assistant Superintendent, Assistant Manager and Chef will not be included in the incentive program. • All staff will not be rewarded for random phone calls or any inquires by perspective golf tournaments /outings to River Oaks Golf Course. Incentive Program Rules, for Banquets • All banquets must be booked with Assistant Golf Course Manager/Food and Beverage. Banquets must be booked a minimum of (4) days prior to banquet. • Banquets booked /completed for incentive program must have not used facility in prior years. • Changing banquet name (from prior years) does not constitute new banquet. • All incentive rewards will be noted on payroll. • Golf Professional /General Manager, Golf Course Superintendent, Assistant Superintendent, Assistant Golf Course Manager /Food and Beverage and Chef /Assistant Food and Beverage Manager will not be included in the incentive program. • All staff will not be rewarded for random phone calls or any inquires by perspective banquets to River Oaks Golf Course. Employee Incentive Program Green Fees Current Rate (less sales tax) Rate after 10% remove for incentive 18 Holes 18 Holes 18 Holes 9 Holes All 9 Holes Weekday Weekend Senior Days Senior $28.57 $30.91 $18.03 $18.03 $13.11 $25.71 $27.81 $16.22 $16.22 $11.80 Employee 10% income per green fee $2.86 $3.10 $1.81 $1.81 $1.31 Anticipated Employee Green Fee Income Based Upon Size of Event (examples) 12 person $34.32 $37.20 $21.72 $21.72 $15.72 24 person $68.64 $74.40 $43.44 $43.44 $31.44 36 person $102.96 $111.60 $65.16 $65.16 $47.16 48 person $137.28 $148.80 $86.88 $86.88 $62.88 72 person $205.92 $223.20 $130.32 $13032 $9432 100 person cap $256.00 $277.00 $162.00 $162.00 $115.00 Banquets All incentives are based upon total gross sales, not to include sales tax, gratuity or beverages Revenue Dollars $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 cap Employee Incentive $30.00 $70.00 $100.00 $150.00 $200.00 $250.00 Incentive Program for Ice Rentals • All rentals must be approved and booked through the Ice Arena Manager. Outings must be booked at least two (2) days prior to the first rental. • Repeat rentals from prior years will not be considered for the incentive program. • Changing of the rental or event name does not constitute a new rental. ® All incentive rewards will be noted on payroll. • All regular, full -time Ice Arena and Recreation employees and the Office Clerk II are ineligible for the ice rental portion of the Incentive Program. Incentive Program for Advertising Sales • All sales must be approved and processed through the Ice Arena Manager. • Advertising renewals will be included as part of the program only if the original advertising agreement was realized because of the employee. • Advertising income will be a result of the advertising revenue minus the sign production fees (if applicable). Average expense of advertising signs range in price from $100 - $200. Three year contracts receive free production fees. • Advertising agreements that extend multiple years will be paid out in future years upon receipts of annual payments by the advertiser. • All incentive rewards will be noted on payroll. • All regular, full -time Ice Arena and Recreation employees and the Office Clerk II are ineligible for the ice rental portion of the Incentive Program. Sample Earning Potential Table Ice Rental Rates: Prince Non-prime Incentive Employee Earning Potential Ice Rental North/West Rinks $200 $140 10% $100 (5 hour minimum prime) Ice Rental South Rink $100 $90 10% $50 (5 hour minimum prime) Advertising Rates: Ad Fee Expense* Incentive Employee Earning Potential Ice Resurfacer Side Ad $1,250 $250 10% $100 Ice Resurfacer Top Ad $1,000 $250 10% $75 8' Dasher Board Ad $850 $200 10% $65 4' Dasher Board Ad $500 $150 10% $45 8' Wall Ad $500 $150 10% $35 4' Wall Ad $350 $100 10% $25 *Expenses are estimated based on typical design costs. 3 year agreements have no expense.