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HomeMy WebLinkAbout07F Eagles Bar and Grill - River Oaks Golf Course City Council Action Request Form Meeting Date 8/10/2016 Department Administration Agenda Category Consent Agenda Title Eagles Bar and Grill - River Oaks Golf Course Staff Recommendation Approve the plan for the Eagles Bar and Grill at River Oaks Golf Course. Approve the transfer of 100,000 from the General Fund to cover additional part-time staffing and Capital Improvements. Budget Implication $100,000 Projected Budget Amount - Transferred from General Fund Attachments Memo from Z Dockter 8/4/2016 1 To: Honorable Mayor and City Council Charlene Stevens, City Administrator From: Zac Dockter, Parks and Recreation Director Date: 8/2/2016 RE: Discussion of Plan for Eagles Bar and Grill th At a workshop on July 20, staff presented 3 options on operating the Eagles Bar and Grill. Option A -- full-time, 7 day a week operation; Option B -- 7 day a week Supper Club; Option C -- 5 day a week Supper Club. The Council selected Option C, the 5 day Supper Club model. The Supper Club model will allow us to greater leverage our current and future employee needs while maintaining a high level of fiscal responsibility desired by the public. The model will have the Eagles open Wednesday thru Sunday (4pm- 10pm Wednesday thru Friday; 11am-11pm on Weekends). Customers will be able to sit in the lounge or outside on the patio depending on the time of year. The goal is to be able to sit almost 60 people in the lounge at once. To break even, the Eagles and Bar and Gill will need to average sales volumes of $1,996.00 on the weekend and $1,314.00 on a weekday. The plan is to have the Supper Club up and running for the final quarter of 2016 with a “soft” opening around October 1 as the golfing season winds down. These changes will allow for a greater experience for Cottage Grove residents and provide a customer experience that currently does not exist in Cottage Grove. Additional Staffing To meet the needs of staffing the Eagles, the following part-time positions will be needed for the last quarter of 2016.  Line Cooks – 6  Bartenders – 6  Servers – 4  Dishwashers -- 4 These new positions will allow for the Eagles to meet the goals laid out by the Council and City Staff. Assuming that these positions are hired in time for the final quarter of 2016 (13 weeks), that equates to roughly $43,000 budget addition for PTE payroll in 2016. The budget adjustments for the 2017 budget are being handled in the regular budget process. There are two items for the 2016 CIP which will need to be added to achieve the level of service desired at the Eagles. The reconstruction of the bar to allow for drinks to be served on the banquet side 2 ($35,000) and the lounge remodel and seating expansion to accommodate more customers ($25,000). The reconstruction of the bar is scheduled to be completed in late December 2016 or January 2017. To fund these CIP additions, there are opportunities to defer maintenance on fuel tanks ($70,000), defer maintenance on chemical storage ($18,000) or defer maintenance on dumpster storage ($11,000). These have been identified 2016 capital projects that could still potentially be deferred and pushed into 2017. Implementation Schedule This timeline as of today to reach full operations for the Supper Club is as follows: a.August – recruit, interview and hire staffing b.August – continued expansion of menu to include all or most of proposed menu items. Document feedback on product selection. c.August – finalize banquet menu and pricing d.August – finalize bar and lounge design e.August – finalize supper club special events and menu options for remainder of 2016 f.September – train new staffing g.September – report on new menu options. Offer additions, alternative or deletions as merited by feedback h.September – finalize base menu i.September – finalize communications plan for the Eagles Bar and Grill j.September – aggressive marketing campaign of new supper club model k.September – lounge remodel l.October – implement supper club operations on regular schedule m.January – present quarterly financial report to Council (to be compared to proposed to pro forma report) n.January – remodel bar st October 1 is the tentative date for a “soft” opening of the Eagles Bar and Grill. The Eagles will be open year-round. Staff Recommendations 1.Staff recommends establishing the Eagles Bar and Grill as a Supper Club as selected by Council at the July 20 workshop. 2.Staff recommends authorizing the transfer of $100,000 from the General Fund to support the additional $40,000 in part-time staffing and $60,000 in capital improvements for the Eagles Bar and Grill. Any additional fiscal need for River Oaks operations will be addressed with budget adjustments at year end.