#2 Action on financial gain request for Janesville Noon Lions Club to place gumball machines in various City buildings
LEISURE SERVICES DEPARTMENT MEMORANDUM
April 13, 2012
TO: City Council
FROM: Shelley Slapak, Acting Recreation Director
SUBJECT: Action on a Financial Gain Request from Janesville Noon Lions Club
Introduction
The Janesville Noon Lions Club, Inc. has submitted a letter requesting approval to place
gumball type vending machines in the lobby of the following facilities: Municipal
Building, Police Services Building, Fire Stations, Senior Center, Ice Arena and City
Services Center. The Lions Club is a not for profit, tax exempt organization under IRS
tax code 503(c)(4) for “civic organizations” as a serviceclub.According to Chapter
12.62, in section 12.62.02 of the Janesville Municipal Code, the City Council must
approve all first time special event applications involving financial gain. Additionally,
any new vendor requests for financial gain on City property should be reviewed by
council. Attached is a copy of the application and letter of intent from Dave Welton,
Janesville Noon Lions Club President.
Background
Previously, the Lions Club had a gumball machine in the entrance to the Police
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Department when it was located on the 1 floor of the Municipal Building. Today, the
Club has approximately 150 machines located in businesses throughout Janesville.
The Janesville Noon Lions Club, Inc. has provided the Leisure Services Department
with a special event application for financial gain activity within City facilities. As stated
in their letter, the Janesville Noon Lions Club is dependent on community support and
fundraisers in their efforts throughout the community, including several City facilities.
The Janesville Noon Lions Club has invested significant funds and volunteer labor into
City parks and facilities throughout the years, including Lions Beach and parkland
between JPAC and Hedberg Public Library, among others. They plan to continue to
invest in these projects, and have a continued need for additional fundraising
opportunities, such as this request.
Staff Recommendation
Leisure Services has reviewed this request, and staff recommends the council provide
direction. The City typically receives a percentage of “concession or vending sales”
occurring in City facilities or on parkland. Due to the low projected revenue amount,
staff feels a percentage of profit should not be required. The Lion’s Club plans to invest
these funds in City property.
Staff feels due to low pedestrian traffic at several City facilities, the machines should be
limited to select sites, such as Police Services, Municipal Building, Central Fire Station,
and the Senior Center. Additionally, the Ice Arena concessions and vending sales are
under contract by the Youth Hockey Association. This request for the Ice Arena would
have to go before the Youth Hockey Board for approval. While the intent is good, other
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service clubs may wish to do similar fundraising efforts in City facilities in the future.
Staff feels guidelines should be set for these types of requests.
City Manager Recommendation
This is a difficult request to provide a recommendation. On the positive side, the Lions
Club has been an excellent partner to the City and in particular the City’s leisure
services department over the years. We appreciate very much the partnership and
hope for its continued partnering.
However, on the other side, this would allow a private vendor to receive a partial
financial gain by selling products at City facilities without any direct City benefit. The
concern here is that the City traditionally receives some percentage of the proceeds
when concessions are sold in City facilities and that would not occur in this situation.
Under this circumstance and due to the precedence I cannot recommend approval.
Possible Motion
I move to approve allowing gumball machines from the Lions Club in the
municipal facilities with location determined by the City Manager’s office.
Attachments
Cc: Eric Levitt, City Manager
Jacob J. Winzenz, Assistant City Manager/Director of Administrative Services
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