BC 2002 06 17 - Laserfiche WebLink

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June 17, 2002 Page 384 Mr. Karl Holshouser, representing the North Carolina Junior Angus Association and North Carolina Junior Beef Roundup, stated the need for panels at the Expo to tie cattle to during livestock shows. He discussed the future use of the facility for cattle shows and sales and the revenue that could be brought into the community from those events. Other persons addressing the Board concerning the need for permanent horse stalls at the Expo were as follows: Bill Cannon; Rice Speed; Norma Floyd; Nancy Boone;. Dave McEachern; Joe Faggart; David McDonald; Terry Brown; Dale Holt; Meg Dickerson; Ray Deal; and Jay Webster. They commented on such issues as the state's horse industry, revenue that the horse shows would bring to the County and the safety of the animals at those events. Chairman Freeman closed the meeting for comments concerning the horse stalls at the Expo at approximately 10:20 p.m. Mr. Clifton advised that the Expo was planned as a facility that could be used for a variety of activities and not just as a concert hall, convention center or horse arena. He pointed out that initial plans for the Expo had called for the use of portable stalls. Mr. Mark Chappuis, Expo General Manager, advised that he had received numerous requests concerning horse shows and the need for stalls at the Expo. There was brief discussion by the Board regarding the importance of the horse industry in North Carolina, the cost of permanent stalls and the equestrian facilities that are located in other parts of the state. After discussion, the Board by consensus asked Mr. Chappuis to meet with Mr. Ray Cloninger, look at permanent stalls versus temporary stalls at the Expo and bring a recommendation back to the Board. Selection of Food Service Provider for the Expo (Compass Group or Carolina Food Systems) Mr. Clifton reported on negotiations with the Compass Group and Carolina Food Systems for food service at the Expo and outlined the issues set forth below concerning the two proposed contracts. Further, he advised that Compass is a large multi-divisional firm headquartered in Charlotte with significant resources and multiple alternative support opportunities. Carolina Food Systems is a start-up firm headed by Joe Phelps who has extensive experience in the industry but must rely on others to support some of the projected food service demand. Compass Group: ' Management Fee - $100,000.00 Annually. No financing cost on equipment purchase. · A bonus program tied to performance above established goals. · County directly receives all food service revenues and pays Compass monthly for "expenses" associated with food purchases and staffing. · The County determines the "surcharge" applied to off-site catering functions when clients require a third party caterer to provide services. Compass retains control of alcohol service if applicable. Suggested ~surcharge" would range from 20-25%. The County receives the ~surcharge." Carolina Food Systems: · Management Fee - $72,000.00 Annually. · County would remain responsible for financing costs equipment purchases and may have to sign-off on a Financing costs are estimated at $40,000 annually. Bonus program tied to performance above established goals. associated with loan guarantee. County directly receives all food service revenues and pays food service suppliers directly based on individual supplier accounts. Staffing charges would be paid by the County on two-week cycles. Surcharge policy identical. There was discussion regarding the two food service contract proposals and the merits of each proposal. The Board addressed such issues as the following: (1) equipment financing cost for Carolina Food Systems; (2) the annual management fee; (3) the size of the Compass Group and its availability of resources; and (4) the commitment by Carolina Food Systems in providing services to the facility.