City of Powell River council is poised to vote on issuing a request for proposals (RFP) for the provision of food services at the concession in the Powell River Recreation Complex. However, CUPE (Canadian Union of Public Employees) Local 798 officials oppose the proposal and want an opportunity to present their own plan for re-opening the facility.
Council decided to close the concession after the hockey season ended in 2012 as part of budget reductions. According to information from the parks, recreation and culture department, the concession lost $16,389 in 2011, a deficit that is covered by revenue from property taxes.
Council has decided that the concession can only be operated if there were no cost to the city. “Management staff has determined that this is not achievable using city staff to operate the concession facilities,” wrote Bill Reid, director of parks, recreation and culture, in a report to council, which he presented at the July 4 committee-of-the-whole meeting. “It is believed the only way to operate the concession facilities at no cost to the city is to contract this service out to private suppliers of food services.”
According to the city’s lease rates bylaw, the city would be guaranteed about $925 a month, or approximately $11,000 a year, based on the square footage of the concession facility.
Danielle Craigen, president of Local 798, made a presentation at the meeting, and asked that council give the union an opportunity for more discussions about its plan for the concession. “The concession has been an agenda item in labour-management meetings on several occasions,” said Craigen. “The union has presented options to management. None of those options have been implemented or even respectfully discussed.”
Craigen disputed some of the claims in Reid’s report and said that lack of management of the facility was the reason it lost money. “There are few business ventures that can find success without some degree of management,” she said. “Our concession stand is no exception.” The concession could realize a profit with “very little dedicated attention and a few simple, cost-free changes,” Craigen added.
Craigen also said the local has requested assistance and support from CUPE national.
Mayor Dave Formosa said he would like to see the union’s business plan. Craigen replied that she felt there needed to be more discussion before the union presented a plan. “I feel we have something that would work,” she said.
Mac Fraser, the city’s chief administrative officer (CAO), took exception to Craigen’s claim that the union’s suggestions had not been dealt with. “It was an item at the labour-management committee, there was an initial meeting with the mayor, I was tasked and completed discussions with the union and we were unable to come to a zero-cost arrangement,” he said. “I think it is misstated to say this hasn’t been dealt with.”
Fraser also said the union can submit a proposal if council approves the RFP process.
Formosa said if the union can make a proposal that shows how it can make money that goes back into city coffers, he would like to see that plan. “I think if that is something that is not viable and we’re in a position to lease it out for X amount of dollars, then do that,” he said.
Councillor Chris McNaughton pointed out that council made the decision two years ago to close the concession. “We did invite the union to provide some ideas, some concepts and that is really a business plan,” he said. “We’ve exhausted those discussions, I’m hearing from our CAO, and we’re at a point now where we’re going to be like other communities that have made a decision to have the private—whether it’s private non-profit or private sector—individuals operate the food services and there will be no cost to the taxpayer.”
In the end, all councillors agreed to refer the staff recommendation to council.
