COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING AND PUBLIC MEETING BEFORE THE COMMITTEE ON LICENSES AND INSPECTIONS - - - Caucus Room, City Hall Philadelphia, Pennsylvania Wednesday, June 3, 1998 1:15 p.m. - - - BILL 980242 - Amending Section 9-205 of The Philadelphia Code, relating to sidewalk sales, by adding a new provision prohibiting sidewalk sales on the 2700 block of American Street, both sides. BILL 980314 - Amending Section 9-205 of The Philadelphia Code, relating to sidewalk sales, by adding a new provision prohibiting sidewalk sales on the 200 block of West Lehigh Ave., both sides. BILL NO. 980343 - Granting permission to Pietrantonio Cassetta trading as Cassetta's Cheese Shop, located at 7401 Castor Avenue, to construct, use, and maintain an open-air sidewalk care o the east side of Castor Avenue directly abutting and contiguous with the aforesaid property. RES. 980349 - Authorizing Council's Committee on Licenses and Inspections to conduct an investigation and hold a public hearing into the recent allegations of consumer fraud levied against Ogden Entertainment, the contractor of record with the City or Philadelphia, regarding the food and beverage concessions at Veterans Stadium. PRESENT: COUNCILMAN JAMES F. KENNEY, Chairman COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN MICHAEL A. NUTTER COUNCILMAN ANGEL ORTIZ COUNCILMAN FRANK DICICCO COUNCILMAN FRANK RIZZO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 COMMITTEE ON LICENSES AND INSPECTIONS I N D E X Bill No. 980343 John P. Campbell, Manager . . . . . . . . . . 4 Legislative Regulatory Affairs - L&I Pietrantonio Cassetta, Owner. . . . . . . . . 5 Cassetta's Cheese Shop Bill No. 980314 John P. Campbell, Manager . . . . . . . . . . 8 Legislative Regulatory Affairs - L&I Bill No. 980343 John P. Campbell, Manager . . . . . . . . . . 8 Legislative Regulatory Affairs - L&I Resolution 980349 Donald Russell, Journalist. . . . . . . . . . 16 Philadelphia Daily News 17 Brian Hastings, General Manager . . . . . . . 29 Ogden Entertainment Bruce Ground, Ogden Entertainment . . . . . . 46 Commissioner Michael DiBerardinis . . . . . . 76 Philadelphia Department of Recreation Greg Grillone, Veterans Stadium Director. . . 76 Michael Connelly, President . . . . . . . . . 103 Federal Pretzels Baking Company Vince Termini, President. . . . . . . . . . . 103 Termini Brothers Bakery 3 COMMITTEE ON LICENSES AND INSPECTIONS (Index - cont'd.) Resolution 980349 (cont'd.) Wayne King. . . . . . . . . . . . . . . . . . 114 Hand Craft Jewelry James Tyrell. . . . . . . . . . . . . . . . . 116 Airport Property Manager Philadelphia International Airport Thurston Hyman, Secretary-Treasurer . . . . . Local 274 4 COMMITTEE ON LICENSES AND INSPECTIONS P R O C E E D I N G S
Good afternoon, ladies and gentlemen. This is the Council Committee on License and Inspections. My apologies for the use of this room, however nice it may be. We expected to be in the Council chambers for this meeting, but because of a long-standing hearing that's been going on a while longer, holding the meeting in this room was the only suggestion. After years of being in this Council, I can tell you that the acoustics are not very good, so that any whispering or talking at side bar becomes amplified, and the stenographer and committee members will have a hard time hear the proceedings. So if you need to talk, please walk into the hallway to do so, that would be a big help. The other thing is, when you're testifying, speak directly into the microphone, which will also give us the ability to hear what you have to say. Before we get to the resolution on Veterans Stadium, we have three kinds of 5 COMMITTEE ON LICENSES AND INSPECTIONS - Bill 980343 housekeeping-type bills to do relative to sidewalk sales and other kinds of issues, and then we'll quickly move on the to resolution at hand. The first bill is No. 980343, which is an ordinance granting permission to Pietrantonio Cassetta trading as Cassetta's Cheese Shop, located at 7401 Castor Avenue, to construct, use, and maintain an open-air sidewalk care o the east side of Castor Avenue directly abutting and contiguous with the aforesaid property. Mr. Campbell, please identify yourself for the record.
Good afternoon, Councilman Kenney and members of the L&I Committee. I'm John P. Campbell, Regulatory Affairs Manager, with the Department of Licenses and Inspections. The Department has no testimony on bill 20 980343. This is usually a bill that is handled by the Streets Department 'cause we're talking about encroachments on a footway, and it's usually testimony provided by the Streets Department who talks about issues such as circulation and a study of the possible location of underground utilities. 6 COMMITTEE ON LICENSES AND INSPECTIONS - Bill 980343
But your department will agree to enforce all of the provisions of the bill if it's approved by Council?
My name is Pietrantonio Cassetta. I have a cheese shop at 7401 Castor Avenue, and I've been in business for 11 years now. It's well-kept, it's clean. So people tell me about two years ago to add water ice to the building. All the customers, they keep telling me that I should have something on the side there, water ice that they can enjoy right there. By the way, I have about 14 feet of space on the sidewalk, so I think I don't stop anybody to walk by.
Thank you for your testimony. 7 COMMITTEE ON LICENSES AND INSPECTIONS - Bill 980242 Any questions for this witness by members of the committee? (No questions.)
The second bill is No. 980242, which is an ordinance amending Section 9 9-205 of The Philadelphia Code, relating to sidewalk sales, by adding a new provision prohibiting sidewalk sales on the 2700 block of American Street, both sides. Mr. Campbell, isn't it North American Street?
Well, the only problem, however, is that -- if the Councilman's staff is here from Councilman Mariano's office, this is a flaw in the title. Mr. Campbell, do you consider it a problem?
We certainly can't amend the title at the committee. 8 COMMITTEE ON LICENSES AND INSPECTIONS - Bill 980242
There is a South American, but I believe the street name is really American Street -- just the north and the south designate the direction. (Anthony Farnon comes forward.)
Anthony Farnon, F-A-R-N-O-N, legislative aide to Councilman Mariano. As far as I believe, I can't -- I'm not experienced enough to tell the Council.
Do you have a copy 9 COMMITTEE ON LICENSES AND INSPECTIONS - Bill 980314 of the bill as it was introduced?
It's upstairs. I would have to run up and get it for you, sir.
I think what may help us here is, why don't you try to contact the Chief Clerk's office. I think what we want to see is the blue back.
And while he's getting that now, we'll hold the rest of the testimony and move on to Bill No. 980314, which is an ordinance amending Section 9-205 of The Philadelphia Code, relating to sidewalk sales, by adding a new provision prohibiting sidewalk sales on the 200 block of West Lehigh Ave., both sides. Mr. Campbell.
Good afternoon. John P. Campbell, Legislative Regulatory Affairs Manager. The Department has no objection to the enactment of Bill 980314. As it relates to sidewalk and street issues we bow to the will of City Council.
You say that with a straight face, Mr. Campbell. 10 COMMITTEE ON LICENSES AND INSPECTIONS - PUBLIC MEETING
But I also would just like to add that we have been out there a number of times in the month of May. And in the four to five times we went there, we have not seen any vending in these particular locations. Now, it just might be the luck of the draw that the times we were out there that there weren't vendors, and that's happened before.
All right. Stand by. Mr. Campbell, the Chair has decided we're going to recess the public hearing, go into our public meeting, get these two bills out. We're going to hold 980242 to the call of the Chair until we have that problem issue resolved in the title. And the Chair recognizes Councilmember Ortiz for a motion on Bill No. 980314, with a rules suspension.
Mr. Chairman, I move that Bill 980314 be moved out of committee with a request for suspension of the rules and a favorable recommendation. (Duly seconded.) 11 COMMITTEE ON LICENSES AND INSPECTIONS - PUBLIC MEETING
Moved and seconded. All in favor, aye. There are none opposed. Bill No. 980314 is reported out of this committee with a favorable recommendation, and a request has been made for rules suspension so as to allow first reading at our next Council session. The Chair recognizes Councilman Ortiz for a motion on Bill No. 980343.
Mr. Chairman, I move that Bill 980343 be moved out of committee with a favorable recommendation and a request for suspension of the rules. (Duly seconded.)
Moved and seconded. All in favor, aye. There are none opposed. Bill No. 980343 is reported out of this committee with a favorable recommendation, and a request has been made for rules suspension to allow first reading at our next Council session. That will conclude the public meeting of the Licenses and Inspections Committee. 12 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 We will now reconvene the public hearing to deal with Resolution No. 980349, which is a resolution authorizing the Council Committee on Licenses and Inspections to conduct an investigation and hold a public hearing into the recent allegations of consumer fraud levied against Ogden Entertainment the contractor of record with the City or Philadelphia, regarding the food and beverage concessions at Veterans Stadium. Before we begin the hearing, Mr. Campbell, I don't think I need you.
That's right, they need you on the other side. Is there anyone here from the Recreation Department? (No response.)
I'd like to start this hearing today and again apologize our inability to use the main Council chambers, but I 13 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 think this room will be sufficient for our needs. And I'd like to thank everyone for coming this morning. As a result of an investigative story by the Philadelphia Daily News on the quality and cost of food and beverages served at Veterans Stadium, we are convening today's hearing to look into this overall contract, which was entered into years ago with the City of Philadelphia and 11 Ogden Entertainment Company. 12 We also want to use the opportunity to 13 explore ways to reduce costs and improvement of quality and selection of food services at this publicly-owned municipal facility similar to the Philadelphia International Airport. Like so many Philadelphians, I have fond memories of going to Phillies game as a young boy with my family. First at Connie Mack, which I believe I attended twice, and then at the Vet. It was an enjoyable family outing and it was an affordable family outing. And every time I go to the ball game with my children today, it brings back those precious memories to me. However, what was once an affordable 14 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 outing for an average family of four is now a luxury that few can readily afford at today's prices. It costs a family of four over a hundred dollars to go to a baseball game at Veterans Stadium. Aside from the memories, for a hundred dollars, a family gets four lower-level seats, one hot dog and soda per person, two beers, and two programs, and perhaps a souvenir for each child. As we get older, memories of special times in our lives are meaningful and take on a legacy all their own. Some memories get clouded while our ability to recall diminishes, but no 14 matter how old I become, I will always remember how good those dogs tasted at Connie Mack Stadium and at the Vet when it first opened. I know that we can do better and provide better services for the people who live in Philadelphia who are baseball fans and are football fans, in addition to the people who live in the region and come in to visit our stadium venue -- and also, very importantly, for the people who come in from out of town to visit Philadelphia for the first time. We perhaps have a reputation, and 15 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 deservedly so, for some of the best fast food opportunities in this city. From our cheese steaks to our pastries, some of the things that we've become famous for we don't have an opportunity to purchase at that stadium. And one of the purposes of this hearing today is to discuss, as we move towards the expiration of the Ogden contract in the year 2000, the opportunity to reconfigure and to re-specify the mission of the food service at the Vet and also to try to open up the opportunities for local vendors who are purveying famous foods -- food that has made the City of Philadelphia famous, an opportunity for them to come in and perhaps do what was accomplished at the Philadelphia International Airport that experienced the same bad reputation. Not too long ago, the Philadelphia International Airport was known for poor service, poor food, and high prices -- not a very welcoming, wonderful experience. That experience has been changed, dramatically changed, light years ahead of what it used to be. And if you talk to anyone who has been at the airport 16 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 recently, the entertainment value there, the ambience, the food and the pricing has become something that we can be proud of for a major gateway of our city. I believe Veterans Stadium has that same type of opportunity, and I think that we can do that. We cannot do certain things in facilities that we don't own. CoreStates Center, the Spectrum, and other places, we don't own those venues.
But this venue in particular and the airport and others, we do have the opportunity to kind of direct where we want to go with these contracts and to try to determine and to improve and expand upon the level of service and quality and choice that our citizens and our baseball fans have. So what I'd like to do first is, in deference to the organization that first got involved and brought this to our attention, is to ask Mr. Russell of the Daily News to please come up and approach the table. I believe you have a visual. Would you like to -- perhaps the Sergeant-At-Arms is here? ) 17 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349
Good afternoon. Please identify yourself for the record and proceed.
Thank you, Councilman. My name is Don Russell. Thank you for having me here today. I come before you as a journalist, as a beer drinker, and as a lifelong Philadelphia baseball fan. And I come before you with a sense of outrage over the rip-off that is being perpetrated at Veterans Stadium. My name is Don Russell, and I write a column called "Joe Six pack" for the Philadelphia Daily News. Six weeks ago armed only with this simple measuring cup, I randomly tested draft beers sold during the Phillies games. At concession booths throughout the stadium, the drafts were plainly advertised as being 18- or 12-ounce beers. After a just a few innings of testing, it became clear that these beers did not measure up. Each 18-ounce cup consistently short by 2 ounces, and the 12-ounce cups were missing one or two ounces apiece. 18 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 Those two ounces may not sound like much. In fact, it's barely a swallow. But at a ballpark that sells three-quarters of a million cups of beer a year, it's ounce after ounce after ounce after ounce. And at either $4 or $5 a cup, Phillies beer is the most expensive in the National League. Each ounce of beer costs the consumer up to 33 cents. A conservative estimate shows that the cost of the missing beer totals perhaps one half a million dollars. When I alerted the City's Department of Licenses and Inspections to the beer racket, a team of inspectors visited the stadium and nosed around exactly 1 of the stadium's 60 concession booths. But just one step ahead of the law, the stadium's concessionaire, Ogden Entertainment, removed the advertising signs that had promised 18- and 12-ounce beers. Luckily, a Daily News photographer had snapped a picture of one of those signs, and it's shown here, along with my first report on the beer scam. With the signs now gone, the L&I 19 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 inspectors told me they could not cite Ogden for false advertising. But had the City inspectors bothered to pour a single beer in the stadium cups, they would have found exactly what I have discovered with this plastic measuring cup: It is physically impossible to fit a properly-poured 18-ounce beer into this cup. With even a minimum half-inch collar of foam on top, this cup can barely hold 11 ounces. 12 There can be only two explanations: 13 Either the stadium's charging the consumers for 14 foam, which is tantamount to charging for air; or 15 the stadium is ripping off fans. 16 Though they were caught red-handed, Ogden never offered any apologies or rebates to beer-drinking fans. The simple solution would have been to pour 18 ounces of brew into larger cups, or just lower the price. Instead, Ogden pulled a slick sleight of hand by removing the signs. " Now, The Daily News has been accused of 20 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 making a big deal about a little beer. And it is true -- it's just suds. But a cup of brew at a baseball game is as American as we get. Other cultures may satisfy themselves with caviar and cricket or souffle and soccer. But here in mirror in Philadelphia, the birth place of America, it's baseball and beer. Beer is an integral part of our national pastime. It washes down the salty peanuts, it spills out of the cup when we reach for a foul ball. " Cheating fans out of an honest measure of beer is an assault on the joy of baseball. Unfortunately, most Phillies fans are quite accustomed to the beer racket at the Vet. In the past weeks, I have been told by many season-ticket holders that only a fool would shell out big bucks ballpark food and beverages. That's a sad commentary, and I can only say that I'm heartened that most fans have wisened 21 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 up to the beer rip-off at the Vet. But what about the out-of-towners that this city is trying to desperately to attract?
In a city that's building its economic future on the development of its tourism industry, the beer scam at the Vet assaults the wallet of every citizen of Philadelphia. How can we expect to promote ourselves as a first-class destination city if we swindle visitors as if they were rubes? We lure them to our ballpark, then stiff them on beer. The experience can't help but leave a bad taste in the mouth of every visitor who shells out his or her hard-earned money for a ballpark brew. Maybe this isn't grand theft, maybe it isn't even a blatant act of consumer fraud. But it is plainly dishonest to gouge a captive audience. Any basketball fan can tell you that the suds scam at the Vet is not fair play. Thank you.
Thank you very much for your testimony. Mr. Russell, during the course of your 22 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 own investigation, how many signs did you come across that indicated the size of the beer specifically for a specific price?
A number of them. The one in the picture here today was on at least one of the stands where they sell pizza products. But throughout the stadium, there were other placards showing 18- and 12-ounce cups, with the prices listed next to them. Those signs are now missing swell.
During the course of your investigation, how many stands did you use your measuring device to investigate?
I went to approximately 8 to 10 stands and tested about 10 beers. That included food court stands and concession stands on all the levels and the Winners Restaurant.
The Winners Restaurant also indicated the same situation that you say you found?
In the concourse area, there are stands that, I think, run by Red Bell. 23 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349
Did you have an opportunity to do a similar test at the Red Bell stands?.
They served their beers in a plastic cup, and it measured ounces. 12
I don't believe there was a sign there. There was no guarantee of how much you were getting.
During the course of your pieces on this issue, you also indicated some other things I'd like to you elaborate on as a result of the food, its quality, and price, and what you've been able to uncover as a result of 24 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 your investigation.
Certainly. Well, The Daily News has focussed on the hot dog situation, in large part, as a perhaps even better symbol of the poor quality of food at the Vet. We found complaints of cold, very expensive hot dogs. We had complaints from ballpark fans of green hot dogs. Another fan complained of finding a wire in a hot dog. And, overall, the general feeling from the many fans that we interviewed was that the food was overpriced and undercooked and not very tasty. We've also reported about the situation involving pretzels down there which are a basic food of Philadelphia. And the pretzels sold at the Vet do not resemble what anybody in Philadelphia would recognize as a pretzel you get from a street vendor. They're not very tasty, they've often frozen, and they're quite expensive.
Councilmembers, do you have any question for Mr. Russell?
I'd just like to make a comment to Mr. Russell. I want to applaud The Daily News for doing an excellent job. 25 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 As far as my I'm concerned, this resolution is well overdue. I have five grandchildren, and believe me, it's tough if you really want to buy a hot dog there, the prices. And I have to agree with everything that's going on what you have reported in The Daily News.
Thank you, Councilwoman. The yellow and blue cup that you have there --
This cup is the one that was being sold up as an 18-ounce cup. The other one is 12 ounces.
Actually, I can do better than; that I'll fill it with real beer. This is Budweiser.
Is it chilled? COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349
It's cold. I have to tell that you there may be differences between draft and bottled beer but, uh. . . (Mr. Russell pours beer into cup.)
That may be unfair. I know that the Ogden vendors attempt to serve beers down there as full to the rim as possible. And, frankly, there's probably a good bit of foam in that particular pour.
That's been my experience. I normally ask the employee there not to put the lid on 'cause they usually get do right to the top. And if the lid goes on, it winds up spilling, coming out the straw hole.
Actually, I'm not certain that they have lids for beer at the stadium anymore. My experience is that when they fill it to the top, they tend to splash the beer on your hands on the way back to the stands.
Thank you. I'm not 27 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 sure this is on, let me check. I think I can communicate. Mr. Russell, Don, could you tell me -- I'm a little confused or maybe even disappointed. There's such things as evidence. And that photo to me is evidence that Ogden was advertising a certain-ounce beer for a certain amount of money. L&I said that they couldn't take any action because of the fact that the Ogden people tampered with the signs based on the photos that you have? And they're -- obviously the camera has a date print stamp on it. What was L&I's reluctance in doing anything because the signs had been removed?
I honestly can't answer that, Councilman. The inspectors who went down to the stadium told me that if there were no signs up any longer, that there was no way they could cite. I mean, it was clear. This photograph was in thousands of newspapers around Philadelphia, and L&I only went down when they saw the photographs. So I'm. . .
Well, I'm glad the Police Department doesn't work that way. 28 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 Thank you very much.
Just for the record, we're now at about -- well, it's about ten ounces. But, frankly, I think that may be a bit unfair because there is a bit of foam in there. But let me just say that (unintelligible due to acoustics) half-inch of foam in this cup, you're going to get about 12 ounces of beer. 13
All right, fine. 14 Thank you very much. 15 If there are no more questions for this 16 witness, thank you very much for your testimony. If you'd like to, you're free to hang here in the proceeding as it goes on.
We'd now like to now ask the people from Ogden, once he's cleared way items, if they could come up. And you can remove those items. After these witnesses will be the Recreational Commissioner. 29 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349
Brian, hold on one second. Are there going to be two people testifying or one?
You can testify and respond in any way you feel is appropriate. Perhaps the best thing to do, if you follow my suggestion, is to respond to the beer issue because the overall issue, in addition to the size of the beers and how many ounces is one part of this discussion. I think the most important part of the discussion, however, is the food service in general, the pricing in general, and what we can do and what you've done to try to improve it, what can be done to try to improve it, and where you think the problems lie. That's where we want to get to in the discussion.
That's fine. 30 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349
I'll be glad to answer any questions, but I think this addresses most of the issues brought up by yourself and Mr. Six Pack. Ogden Entertainment is an internationally-recognized concessionaire serving millions of people around the world. We're proud and honored to have been the concessionaire of Veterans Stadium for the past years. 11 As to the quality of conditions you 12 brought up earlier, Councilman, at the Vet, we 13 offer nearly 200 different selections. In addition to hot dogs and sodas (unintelligible due to acoustics) water ice, our menu selections offer the highest quality. In fact, we're proud to say that in a national survey of ballpark fare by dietitians, little leaguers, and their families done by USA Today, Veterans Stadium was concession rated the best, and won a home run as you can see by this photograph here I have behind me. Our hot dogs are supplied by Hatfield, the best in the business. Hatfield hot dogs exceed national USDA standards and are constantly 31 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 checked for quality of (unintelligible due acoustics). Hatfield has been providing the highest quality product in the food service industry to the Delaware Valley for a hundred years. As far as the pricing, we're also proud to note the pricing of our concessions is among the most competitive in the country. According to the National Baseball Fan Cost Index, Vet concessions ranks third lowest in prices of concessions in America. In fact, it's nearly 13 percent below the national average. Only two 14 ballparks, Montreal and Cincinnati, have lower 15 concession prices than Veterans Stadium. The 16 price for our Phanatic hot dog and soda, our most 17 popular Phanatic menu selection, is also less at 18 the Vet than at any other ballpark in the country. 19 As to the beer issue that Don brought 20 up (unintelligible due to acoustics), the Vet has the largest selection of beer of micro brews than any other stadium in the country. Fans can choose from a variety of hundreds of different beers from around the world America's, including the most popular beers -- Budweiser, Miller's, and Coors. 32 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 We don't sell or advertise our Vet beers by the ounce. Our menu advertises only the price of beer, not the volume. At baseball games, each one of our menu board clearly offers two choices for draft beer -- large and regular. We've never misrepresented the way we advertise or sell beer or any of our products to our customers. Our large beer is served in an 18-ounce cup filled to the top. A regular beer is served in a 12-ounce cup filled to the top. The methods we use to serve beer are specifically recommended by our brewers and (unintelligible due to acoustics) training that every one of our concession servers go through. As to local vendor participation, included in the 200 menu selections at the Vet are offered products from Philadelphia-based local restaurants and food vendors, including Rita's Water Ice, Hatfield, and (unintelligible due to acoustics). All local vendors have the same chance to participate in Vet concessions. A selection process approved by the City is used to select vendors based on a criteria that includes quality, 33 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 pricing, delivery, just to name a few. Our interests have always been to serve Philadelphia fans and their families the best food at the most competitive industry prices, and we're going to continue to do that. To that end, we've established a called "Vet Concession 2000" to examine the concession contract at the Vet going forward. Over the last several months, we've begun to hold discussions to identify ways to improve the terms, structure, and local participation in the Vet so that it continues to develop the well-deserved reputation of the City of Philadelphia. We welcome the input and involvement of City Council, and we welcome the public too.
Thank you very much for your testimony. I have a list of questions I'd like to ask regarding the contract. What I'd like you to do is respond to at least the one picture we saw that would indicate that there was a specific holding out of a specific number of ounces for a specific price. And if you could also respond to the allegation 34 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 that upon the appearance of L&I inspectors, these signs disappeared.
You know, I would call that ludicrous. I'll give you some background. Obviously, there is a picture here of two stands. Of the 120 menu boards we have throughout the stadium, there are two stands for Pizza Hut. Those menu boards were provided by Pizza Hut to fit their specifications when we do business with them. What you see, though, the 18-ounce and 12-ounce that's described is the size of the cup. When we realized that it was inconsistent with our other menu boards we did, in fact, remove them. And now it just says "$5" and "$3."
When did you realize it was inconsistent with your other menu boards?
And why wouldn't you with respect to -- if you do know, fine; if you don't, you don't have to speculate. 35 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 But why would Pizza Hut order signs that had specific ounce requirements?
Well, what we did was, we changed the menu there. We added a few different items. We wanted to upgrade the menu board, and when the information was communicated to them, it was communicated in the typical way that we get pricing approved. And they read it line for line with our cup specification on there. Once again, it was inadvertently left up there.
Does that cup specification appear anywhere in the contract?
No, it does not. It's what we submit to the City for pricing on an annual basis.
So there is some documentation, either internal or with the City, that would indicate some size?
We typically, when we submit pricing, we put in a lot of information -- 36 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 size of hot dogs, quantities -- in order to reference, you know, the value.
Is it your contention that the difference, however slight you may believe it is, is one of issue of foam or --
Those cups specifically hold and ounces. We do not misrepresent 9 them. 10 As far as the beers being poured in the 11 cups, we specifically train our employees the 12 proper service and how to pour a beer so that a 13 quality product is going across the counter. 14
Could you discuss 15 for me -- I mean, break down the costs of what 16 goes into, for example, the food items and the 17 liquor items as it relates to the percentage that 18 the City gets, the taxes that are applied. See, what I'm trying to get an idea of is to the listener or the person who would read this story, what exactly goes into the cost of an item when they buy it? How much is taxes, how much is the City, how much is you, how much is labor? What is that exactly?
Well, specifically for 37 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 food items, it's a percent sales tax. In addition to that, depending on where the food item is sold within the stadium, there's a different commission rate that's due the City of Philadelphia. In general, the concession stands, the commission there is 58.21 percent. For food court stands, it's 30 percent. With beer, the tax is percent. It's a City tax. And, once again, the same commission rates apply, depending on where it's sold.
So for the beer, 10 percent is applied on 58.2 percent, and then it's actually 68.2 for liquor and 58.2 percent for food?
Correct. And there's also a 25-cent surcharge the City had agreed to, to finance the outside policing for the L&I detail.
Right, right. Well, actually, the Eagles is slightly higher. It's 50 cents. 38 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349
So before you even start to make any money on food items, to round the figure off, let's say you have to give the City 60 percent of the gross receipts on all food?
Depending on where it's sold. If it's sold at the food court, that commission is only 30 percent.
In 1990, the Eagles 15 collected a surcharge of 75 cents per beer. I 16 believe that's also related to the issue of 17 policing and security both inside and outside the 18 stadium. They again collected a surcharge in 19 1994. Was there a surcharge collected between '91 20 and '94? 21
I don't have that 22 information with me but I believe so. I can get 23 you the number. 24
Well, we have 25 representatives from the Recreation Department and 39 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 the stadium. Maybe they know. But if you could find out, I would be interested in knowing that and what that amount was that was turned over to the City.
Do you know or can you recall or can you find out what the cost of a cup of beer was in 1991?
I believe there was an increase until the actual liquor tax went into effect. I believe it was '95.
In 1992, the Phillies received a surcharge, cents for cup of 25 beer, bringing the cost to $4 a cup, and that was 40 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 in 1992. Was a surcharge collected after 1992?
Once again, I don't have that information. I'd be glad to provide it for you.
I'd also ask -- don't know, do you have somebody there taking notes on requests for information? I'd appreciate it, you know, if you could get back to the Chair with that if it's not available to you now or if there's no one here who can give you that information.
We also need to know what the cost of beer was from '91 through '95.
I can tell you that we did hold the price through the years you're talking about.
The issue of 41 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 pretzels becomes something that's mystified me for a long time now. Within a baseball's throw of Veterans Stadium is the birth place of Philadelphia soft pretzels, at Seventh and Federal, Federal Baking Company. We however provide opportunity for customers to buy what is a large frozen -- not frozen -- not always frozen, but a sometimes frozen pretzel, which is obviously not a Philadelphia product. If you could tell me how that happens, why it happens.
Actually, we do offer Federal Pretzels in our suite in our catering department. You know, we've chosen, through careful analysis to go with the J&J which is a quality pretzel. It's a pretzel served in well over 95 percent of the stadiums and arenas in the country. You known, we have strict criteria. We carefully consider every product. We want to sell the best product out there that can meet the criteria specified.
Well, I would argue 42 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 with you, just from a subjective standpoint, as a lifelong Philadelphian, that that's not the best pretzels available.
And as a lifelong Philadelphian, I would agree with you. However, when you deal with a dynamic situation where the attendance fluctuates, the weather fluctuates, and you have storage issues, just the general logistics, we have found that we need pretzels that meet that criteria. When all things are considered -- and we don't make any decisions lightly -- we found that J&J is the pretzel that fits the bill. We would be glad to consider Federal pretzels, and we constantly review these (unintelligible due to acoustics).
Are there any fees that are paid to either Ogden or the Phillies for consideration to sell specific products or requirements to buy advertising in the stadium complex that you're aware of?
I can only speak to what I know of, Ogden. And we pay for the pretzels. Any arrangements otherwise would have to be taken 43 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 up with the Phillies.
Are you aware of whether or not the Phillies have the opportunity to either veto or to suggest or to require a specific product to be sold or not to be sold?
As I'm aware, they do not have that ability, but we would not sell a product that does not meet our criteria. The Phillies -- well, fortunately, we're tied closely with them and we try to work with them wherever possible, but they do not have the ability to dictate what is sold there.
And another issue. Is there any distinct cover charge to the Stadium Club during Phillies games?
Is there a cover to gain admittance or do you need a reservation? How do you --
You need a ticket. You 44 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 also -- there's also a very long waiting list as a result of how desirable that location is.
Who receives those charges that are charged to get into the Club?
I don't have that information in front of me. Once again, I can get it for you.
Fine. And I don't expect you to be able to -- I have a whole list of questions, and I'm not expecting you to know it all or have it at your fingertips, but if you could get that information back to the chair and provide us with that, we would really appreciate it.
Councilmember Rizzo. 45 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349
Thank you, Councilman. Many of the complaints that I hear, besides the pricing, is the quality of the product. You described that you buy one of better hot dogs -- Hatfield, which exceeds the national standards.
When you buy the product from them -- and we've heard the word "green hot dog" -- does it come to you fresh or frozen?
It actually comes to us fresh. Another point -- when there's a long break between games, they're frozen, and it's clearly dated.
We freeze it only when necessary. During a long, long break, it could be frozen. Now, when I say "a long break," I mean over two weeks. The shelf life on hot dogs is up to 45 days, so the period when a hot dog may be frozen during the Phillies season is not very 46 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 lengthy.
Quite a few products due to the logistics of, you know, feeding 20,000, 60,000 people at a given event necessitates freezing.
How do you manage that something doesn't get, like in my freezer, a year in the back? How is that managed?
As the products come in, they're stamped and dated. We're very careful. Our warehouse people and our stand people are trained professionals. They go through rigorous training. And we rotate the stock properly. We go to great lengths to make sure that it's a quality product.
GROUND: I'm Bruce Ground, and I'm with Ogden Entertainment. The product that we purchase at the Veterans Stadium is not on a home stand basis for baseball. And what I mean by that is when we look at a home stand, whether it be 6 games, 10 games, 15 games, we calculate the amount of product 47 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 that's required for that home stand and purchase only for the home stand, plus percent. 4 So the amount of product we have left 5 over at the end of a home stand is very minimal 6 and is kept down at the main warehouse and is under strict guidelines for refrigeration and freezing.
For the most part, bread is calculated to only to get us through the home stand. And, once again, there's a very a minor amount of bread that may be frozen. Pretzels, they are also calculated -- not on a home stand basis but on a game basis. So these pretzels are coming in specifically for an individual game. And, once again, there's a very modest amount that comes to us frozen.
Is there anywhere in your contract that is indicated that you do freeze product? Is there in the contract -- I was led to believe that you represent the product as being fresh that you sell.
All the product that we 48 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 bring in is in fact fresh.
If you're specifically referring to the pretzel, it comes to us in a frozen state. That's the way it is purchased, and that's the way it's purchased across the entire country.
It is a frozen product that's sold nationally across 95 percent of the stadiums and arenas in the country.
If you bought them from Seventh and Federal, they'd be fresh. Thank you.
Well, that's -- I want to just be fair 'cause I've been both in the stands and in the suite level. I would suspect that the price -- I don't suspect, I know the price for items in the suite level are significantly different than items 49 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 -- higher than items in the stands. So I mean, if you're going to buy -- some of the pricing that I've seen, without hadn't even gone into the suite-level issues, are exorbitant amounts of money for --
Compared to other stadiums and arenas, our neighbor up and down, all over, it's not fair to compare it to what you may get at a catered hall.
The dynamics of the stadium, we're open for one hundred events a year, a good year, but we still have to pay for the overhead, all the capital improvements, all the utilities. And, I dare say, our electric bill is quadrupled when you --.
Believe me when I tell you, just when the building is dark, our costs are significant. When you have a hundred days to work 50 COMMITTEE ON LICENSES AND INSPECTIONS - RES. 980349 to cover those costs, which are significant, that's why it's not a fair comparison.
But it's also not a fair comparison to take solace in the fact that you're as high-priced as every ballpark in the country.
Well, actually, we're 9 percent below if you're talking about concessions. 10
My next question is 11 on the handout provided which indicates that 12 Philadelphia is below -- it's only higher-priced 13 than Montreal and Cincinnati -- there's a price 14 here of a hot dog for $1.25. 15
That, I understand, 17 is a children's hot dog. 18 And my understanding from today, when I 19 saw The Inquirer, Mr. Six Pack aside, this is more 20 of a non-biased source, they rated the price of a hot dog at Veterans Stadium as 2.75 to 3.50.