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TOWN OF NEWCASTLE
REPORT
GENERAL PURPOSE & ADMINISTRATION COPMMITTEE
June 19, 1989
CS -21 -89
FILE #:
BAR SUPPLIES RATE REVIEW
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File # ' 9
Res. #
By -Law #
RECOMMENDATIONS:
it is respectfully recommended that the General Purpose & Administration
Committee recommend to Council the following: -
1. That Report No. CS -21 -89 be received for information and endorsement.
1.0 BACKGROUND
1.1 Prior to opening the Bowmanville Recreation Complex a rate of $1.50 per
person was recommended and ratified by Council to cover bar supplies.
During a regular meeting at Council on October 24, 1988, Resolution
recommendation:
#C- 785 -88 approving these rates included the foll g
"That the cost of the bar supplies be monitored for a period of two
months and that a status report be forwarded to the General Purpose
and Administration Committee for evaluation."
1.2 Since the hall was not in full operation until December and in order to
monitor all types of functions including non - alcoholic and alcoholic
events, staff delayed the report longer than the two months suggested in
order to ensure accurate revenues and costs.
2.0 Staff Comments
2.1 In response to the concerns expressed at that time staff have monitored
ave confirmed that this
the costs associated with these supplies and h
rate is adequate to cover bar supplies functions held in this facility.
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REPORT CS-21-89 - 2 - June 19, 1989
2.2 Schedule I indicates the supplies required for the bar and how they
break-down for each individual drink. Based on cost factors listed in
Schedule I, nightly corkage costs (based on three drinks per person) have
been determined as follows:
3 Drinks Per Night
Beer Drinker $ .99
Wine Drinker $ .81
Liquor Drinker $1.44
No Alcohol Drinker $1.95
3.0 Summary
3.1 In overview, the rate of $1.50 per person to cover bar supplies is
adequate to cover direct and, in most cases, indirect costs. Although
there may be a slight loss incurred for non-alcoholic events, these losses
are made up during events where alcohol is served. Since events involving
alcohol are the primary users of this facility, staff anticipate an
overall profit from corkage costs. Further, staff will be recommending in
an ensuing Rates & Fees Report for 1989-90 that this rate not be increased
for the next year in order to provide a fair rate of charge to users of
this facility.
Respectfully submitted,
Joseph P.' Caru--ana, Director
Department of Community Services
JML:JPC:sa
Recommended for presentation
to the Committee
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SCHEDULE I
CORKAGE COSTS
BEER: ICE (.03) + CUP (.05) + HOUSE CHARGE (.25) _ .33/DRINK
.27 /DRINK
WINE: CUP (.02) + HOUSE CHARGE (.25) _
LIQUOR: CUP (.04) + ICE (.03) PO /JUICE 25) +
( 16) * = .48 /DRINK
NO ALCOHOL:CUP(.04) + ICE (.03) POPOUSE CHARGE * *25) + .65 /DRINK
* AVERAGE OF POP AND JUICE COSTS
** DOUBLE CHARGE OF AVERAGE COST
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ITEM
QUANTITY
COST
COST PER DRINK
DIRECT: 1)
CITY PURE ICE
12 KG. BAG
$4.25
.03
2)
CC #7C PLASTIC CUPS
1000
$36.25
.04
3)
#150 WINE GLASSES
500
$59.15
.02
4)
BEER GLASSES
1000
$55.10
.05
5)
POP /JUICE
BAG
$51.26 .11
(675 drinks)
$50.00
.10
JUICE
.12
INDIRECT :B)
HOUSE CHARGE
.10
- EQUIPMENT
.15
- DEPRECIATION
BEER: ICE (.03) + CUP (.05) + HOUSE CHARGE (.25) _ .33/DRINK
.27 /DRINK
WINE: CUP (.02) + HOUSE CHARGE (.25) _
LIQUOR: CUP (.04) + ICE (.03) PO /JUICE 25) +
( 16) * = .48 /DRINK
NO ALCOHOL:CUP(.04) + ICE (.03) POPOUSE CHARGE * *25) + .65 /DRINK
* AVERAGE OF POP AND JUICE COSTS
** DOUBLE CHARGE OF AVERAGE COST
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