Orange County NC Website
Browse       Search
16 <br />Attachment B <br />actually cost more in personnel and inventory costs than projected revenue <br />received. <br />However, the comparison to fee-based usage of all of the requested hours is <br />misleading, as it is basedon an assumption that fees for those hours of field <br />usage would in fact be received from other entities. This has not been the case <br />($350 total in FY 2010-11), and makes the comparison above a theoretical one. <br />It must be noted that in the last fiscal year, little usage of the fields in question <br />occurred(excluding a large September softball tournament), and thus the actual <br />revenue figure of $350 from FY 2010-11is the equivalent term of the agreement <br />(March-July, September-October) proposed by HYAA for that year, and is over <br />eighttimes less thanthe proposed $3,000 License Fee rate in the agreement. <br />Estimates of potential concessions revenueare difficult to project. Based on <br />figures from HYAA, we may expect to see gross concessionssales of up to <br />$4,200-$5,600per year. However, if the County operates concessions, there will <br />be significant associated costs for purchases of sale inventory and paid seasonal <br />staff,which will be required to undergo food safety training. Net proceeds of <br />concessions revenue for the County are usually about 30% of sales(after <br />subtracting purchases and personnel costs), making the net revenue expectation <br />based on HYAA estimates around $1,260 - $1,680per year. <br />However, staff notes that the potential for concessions revenue isa significant <br />unknown.The cost of paying staff to sell concessions may outweigh any <br />revenues gained.As such, having a third-party concessions vendor may be <br />desirable. There are indications that an area church, which sells concessions as <br />a side venture, may be willing to undertake concessions sales (and pay the <br />vending fees of up to $1,755 as per the Fee Schedule). <br />$4,755 <br />The total of license agreement and potential concessions revenue is . <br />2.Estimated Costs Associated withthe License Agreement <br />Without actual observations or a frame of reference for assessing costs <br />associated withHYAA’s proposeduse of the Cedar Grove (and to a much-lesser <br />degree, Fairview) ballfields, an estimate of costs that will accrue to the County <br />as a result of the usage is difficult to project. The true measure and assessment <br />of these costs will not be known until after one (or more accurately, multiple) <br />years of observation and actual expenses are accounted for. For purposes of <br />agreement renewal, it is hoped that the spring season of 2013 will enable tweaks <br />to the agreement, if needed. <br />With that caveat, however, there are several areas where staff projectstypes of <br />costs that may result fromthe agreement. For example, there will certainly be <br />substantially-increased usage of thefields, restrooms, water fountains and <br />3 <br /> <br />