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Home My WebLink About1993-05-24 93-278 ORDERmv Vzl DateVI May 24,11993 Item No. Item/Subject: Award of Newspaper - Giftshop Concession at Bangor International Airport Responsible Department: Airport/Purchasing Commentary: Three proposals were received for the giftshop concession and the total adjusted payments and proposed shop renovations ranged from $1,001,454.00 from Mr. Paperback to $1,247,162.00 from Fenton Hill Florida - see attached summary. The proposals were reviewed by the Airport Committee on April 9, 1993 and o May, 7, 1993 where additional information and clarifications were considered. Please refer to the memorandum dated May, 3, 1993 for an outline of the additions and clarifications that were reviewed during the second Airport Committee meeting. A letter from the Civil Rights Division of the FAA that expressed concern about the City's selection process was also reviewed and discussed. The staff recommendation to award the concession contract to Fenton Bill Florida w approved by the AirportCommittee and referred to the City Council with a n to passage. Department How Manager's Comments: WR.A a ( . . ,A city Manager Associated Informationzoj.FifJ4- A Budget Approval: Finance Director Legal Approval: aala,�Scio y�I'`� 1jjot ,'ss JeS r4iud dy ThiS 1ka'iil Ix city solicitor Introduced Per: /Passage /-7 First Reading /-7 Referral Page 1 of 1 Msigned to COMll10, Shubert Nay J4, 1993 CITY OF BANGOR (TITLE.) (Prbtr authorizing Aaavd..ef CP4qo$%ion.SeutracC..at_Bangor .. International AiiFO C to Fenton Hill Ft TSdsInc. BY the cam COMMON Of W City Of Damm. ORDERED, THAT Edward A. Barrett, City Manager, is hereby authorized to execute a five year contract with Fenton Hill Florida, Inc. for the operation. of a newspaper, magazine and gift shop concession at Bangor International Airport. The concession's to the Airport, shop renovations and operation as a disadvantaged business enterprise shall be in accordance with the proposal submitted by Penton Bill Florida, Inc. on March 17, 1993. In Ci'y Council May24,1993 Tabled until Opinion is received from FAA MC� CS Clerk IN CITY COUNCIL Joan 14, 1993 Passed by the fallowing yes and no votes. COontilros voting yes: Blanchette, Bragg. Cohen, Sail, Shubert, Saucy Stone and Sullivan. Councilor Q[ivy no: Prankel./�//JJ ti116� �N1 C CIL I CLERK 93-276 O ROER Title Autba[i[Lg Award of Concessions Contract at Bangor International Ai[poYt t0 Fenton Hill Floiia .Inc..................... ....�.....,.{........... 4 ................ �✓-'~`✓`U� MS.�Ao��iguoryryedro Councilman 2T: 93-2)$ May 3, 1993 MEMORANDUM fro: Airport Committee FROM: David N. Pellegrino Purchasing Agent RE: Newspaper, Magazine, Giftshop Concession at Bangor International Airport in accordance with action taken during the April 9, 1993 meeting of the Airport Committee the owners of the Mr. Paperback concession were contacted and given the opportunity to add shop renovations to their proposal and to meet the 108 Disadvantaged Business Enterprise requirements of the FAA. In response to this opportunity the Mr. Paperback Company has proposed a $150,000.00 renovation to their concession area and has stated that at least 10% of their purchases would be made from certified DBE firms or firms that were owned and controlled by women and minorities and therefore certifiable as DBS firma. See attached correspondence dated April 23rd and April 28th from Mr. Paperback. Since the April 9, 1993 Airport Committee meeting I have also received the attached correspondence from the other proposers in which they have corrected and clarified my summary that was presented during our last meeting. i have also received the attached letter from the FAA in which they have expresseda great deal of concern about the award of the concession contract to a non DBE concessionaire. I have reviewed all aspects of the revised proposals with Bob Ziegelaar and Eric Stumpfel and we all agree that the most responsive and most competitive proposer. Continues to be Fenton Bill Florida, Inc. we also believe that any other award would carry a potential problem with the FAA due to their disadvantaged Business enterprise requirements for airport concessions. NEWSPAPER, MAGAZINE, GIFTSHOP, CONCESSION BANGOR INTERNATIONAL AIRPORT SUMMARY OF PROPOSALS RECEIVED Mr. Panerback Annual Guarantee: $ 112,000.00 $ 105,000.00 Projected Payments: $ 50,000.00 (in advance) 1993 146,981.00 1,337,580.00 1994 155,560.00 11429,821.00 1995 164,696.00 11528,421.00 1996 174,427.00 11.5 1997 184.790.00 1,000,001 + 219,263..04 1s - Total Pavments $ 826,454.00 Payments Adjusted to Mr. Paperback's $300,000.00 $261,000.00 Projected Gross Sales $ 826,454.00 S. - Proiected Annual 108 Purchase 1008 098 Gross Sales: from ONE Firms 1993 1,099,847.71 Total Proposed Pay- 1994 11171,339.81 1995 1,247,474.76 $1,313,963.00 1996 1,328,560.62 1997 1,467,193.78 ifications Adjusted 93-j78 Fenton Hill W.H. Smith $ 105,000.00 1,284,500.00 $ 50,000.00 (in advance) 1,349,000.00 183,488.00 1,337,580.00 163,100.00 192,675.00 11429,821.00 176,802.00 202,350.00 11528,421.00 190,637.00 212,400.00 11.5 204,473.00 223.050.00 1,000,001 + 219,263..04 $1,013,963.00 $ 954,275.00 $ 947,162.00 $ 897,162.00 1,223,250.00 1,154,000.00 1,284,500.00 0- 200,000 1,245,351.00 1,349,000.00 0 1,337,580.00 1,416,000.00 12 11429,821.00 1,487,000.00 11 11528,421.00 Payments: 8 of Groes Sales 0- 200,000 a 11 0 200,001- 600,000 10 12 10 600,001- B00,000 11 13 12 800,001-11000,000 11.5 14 13 1,000,001 + 12 1s - 15 Modifications: up to $165,000.00 $300,000.00 $261,000.00 S. - INS: 108 Purchase 1008 098 .Joint Venture from ONE Firms - 104 OHS Total Proposed Pay- ments/Modifications $1,101,454.00 $1,313,963.00 $1,215,275.00 Total Payments/Med- ifications Adjusted to Mr. Paperback's Projected Gross Sales $1,001,454.00 $1,247,162.00 $1,158,162.00 MR PAPERBACK 1135 HAMMOND STREET BANGOR, MAPLE 04401 207-990-4107 23 AP611993 City of Bangor Mr. David N. Pellegrino Purchasing Agent 73 Barlow Street Bangor, Maine 04401 Re: Operation ofa Concession at Bangor hnemational Airport Dear Mr. Pellegrino: Mr. Paperback is pleased to present architectural renderings of our proposed newsstand at the Bangor International Airport. As the sketches will show, we envision an open floor plan that facilitates comfortable shopping and will maximize the product display. Further we propose a new front on the international terminal store to allow for better egress. The architects have estimated that these proposals will con approximately $150,000.00 to implement and Mr, Paperback is prepared to immediately begin reconstruction upon award of the contract and the signing of a lease. Our other terms as provided in the original subnission remain in force. In addition to the proposals for our gores, we are enclosing a lin ofbusinesses that are or can quality as DBE's and from which we buy in excm of 10% of our merchandise. Please contact any of our listed vendors should you require additional information. We look forward to continued business with the City of Bangor and the Bangor International Airport and will be pleased to answer mry questions you may have concerning our proposal Sincerely, 6�?I Robin Ross President, Mr. Paperback MR PAPERBACK 1135 RAMMONB STREET BANGORMAINE 04401 3074904109 28 April 1993 City ofBangor W. David N. Pellegrino Purchasing Agent 73 Harlow Street Bangor, Maine 04401 Dear Mr. Pellegrino 93-2)8 Y Per your request, we have prepared a listing of the dollar amounts (wholesale cost) of the business we did with DBE or DBE capable businesses. Given the short notice ofyour request I have been able to find receipts for only 81530535 (wholesale) for last year. We understand that the FAA requires 10% of our business to be with DBE type enterprises and we will comply with that directive if chosen to be the Operator of the Airport Concession. We will be happy to provide receipts, addresses and other proof of business as requited to verify our compliance with the 10% role. It is our intention to buy greater than 10% of our merchandise fiom these vendors in the coming year as we firmly support not only DBE's but local Maine vendors and merchants. Ifyou require additional information we will do our best to provide it Please let us know when we may expect the neat meeting of the Airport Committee. Robert F. Foss President S, Page 1 9}2]R MR. PAPERBACK u6TMa OF USAWAs EacLnmee AmuMa: Tie PMbla House Ahry Wy Spenw Jane Crown Jw Creole, MM2] 1W%Aller 8480 BU TJ 100yuwlar Ad, Em 313 PemNuft Mmne OMR Gmr9elwm, Mairm 0154 620346 1-20]32EH4950 9305&] 1-9]0 2.Ara2 Are Wage Ceramka EYaOMOlaen B.H.S. MMI Bama 0S Ale Rinde OMa 1W%mnlm Po. Box"I 100% FORMS Wanm,M0ne 0454 Bar Harder Means "OH2613529 6184M 1-ID]30 ix 6170.60 Country0reflen EMMSee9^^ck Bg T Cada Samme TePp P0. Btt11S0 100%wnw 105awprSrcek Clmle Wrm cnMell yyµ Mass So WI Pollan, Anne GaryToppi 1&017516154 564.76 ell 33%canna 556695 Just A SK W9ry Olin Mans IRM1M BeIMLambml RFD 03 Bm 30 IW%caner P0. Em 1014 1PKox�u BaIh9. Mass, damoolII. Mane 14ID]3384W 03.M6.37 1-ID]5'i]3152 $1AeBAO pais Boards Dana ROEeb WMN Arms CdMetin GMlwmtl Cora Wl Lve - IWM Aller SISORARmC 1W%vme, RAo*PaIL M4 SO years Rd SMvx. LT I�50034�II S11726A0 13102-25]d50] 63.622.00 KMcreb By Lynn LRIn Lure SNye Sharon ArdMe ime Ad Asset IM%w ]M Man Round IW%elm Bangs. ME KxNiapped Wa1PM, MA 0790 i 227d 7-8591 1 86365021 519297 Nature Deal ON11e Baht, PiMVWGaMn Belle!Ants, 6Mi1tu8We 10096amer SRT.e 1Wiwrar Allsf.PA19003 6106.51 Carchose ME O4,08 $92710 Futtxm Shvm OaOom. BAl4T3 Oallmxers, ME WAS 1 N]SRSMt ACCOMMSPmdind; ManecnaticarM Jklarraw BreN walam CMysW1m Cars CHID) RROI Sm489C IW%vmer 51 GYvm MrM 10016wxv Camden. ME 044 $MAO TMmWon, ME 0ASH 1-207-2m & S 1-34!.3518893 AWawMS VnlmW of Moore EIMaOW BIrtMwd See shell Grm, nks susanscnw M1an SBMI 5I%ewner P.0'9= 792 1WSulaier Cwvo, ME UWA Comdn, ME dealer I A]8 !1 1-217-2�b9041 09740 crafts By0ume Mar9e0m1 LTO Inc Anneal Lnda Ttlrry 2951 Akfam KiAlrsai 100%calx PMkp 80eelpl 10096wmer Warren, ME 0464 9FMen Road 4A 1-30]-73301 s. PWaY. ME 04105 130]-nM1nM BesPMm OnCa Oarvlson IMryyvnky POMVIrs JeegMAa HMkq Page 1 9}2]R HOPE I, Ba51N IMMIA RE 1M%mmv nenzcotta, ME 00503 1-P]dX m Grapho S""'piling Lynne Be@" 341 YIN, SMMO 10016 ,,,,r York, ME BOWS 1-3)7503-'/909 IM04m MmeycNk Panx Wn lmpewnne Lo MGucnmo PO, Box 272 1 W%>.mu Meg•HlpewY Wa)m, ME 0 Naa B,nw 1-207485,8589 I00%nmw aN fm'e Paiby SuwnlbmArt RR1 B"MUS 1W%armor. Ash Cm Rmd Genlw Ywn. lural Be. Halwvnll, ME 040M IM%oi 1-3) 8i3SD Larn Lnens Mop COSY 113 FM ROM ICONS seems Cqe EI®beth. ME 00107 Yen MCGreawY 1�A]-0RB301B 140%,caner Passes Pnbery Cheryl Oamemn PC. BOMBED lm% SYMsh, ME OOWO Penny FutlW 1 N76,QN 2 IaOl&� odscllYcm cs canna Gneml P.O. Sm SM IW%wmer CarBnu, ME Un6 $505.11 1340 IW%caner BBebeNy Faws c. Sw nercaMN COX C. BBB] PaNwazan Fr,W, ME 04032 SCROwnea Meleshirmots um Bxgv 395paMs ROOM BNwW, ME 00012 1-3)I WeMYNewrnger BW40ees ROOM Oum[y PC. SOSO 7016 s BOSOM, ME 00005 I-ZD7 ] 391 #9033 Pupuls Vapry Co. Also HnN P.O. Bm9 IW%ormer Mb, ME 0MS3 1-dM3M i $311.36 9}278 G. PO.Bn366 IO daw ME 00051 1.3)]-] Ica Spore MouNaln fe"berro MoNy 514748 P.O. Po Gel 1N%arner WH. Rocpal ME 00055 WUSIHole W"Shop IM04m MmeycNk PC, BO, R50 100% welr BmnM,ME Of 921-0 Maidg Panay Naa B,nw 1475 Gmam R®a I00%nmw Wamn, ME 0,800 bZC-27 561 swmner Pmnry Genlw Ywn. lural PO, 0=61 IM%oi snmmn Rub GmMlk ME O l I�N74 &mm Saw RMr PWay Yen MCGreawY RR1 BmV 140%,caner Bora aMME=10 1-201� C,&o Guw Penny FutlW RI Ba 1915 RI KH IaOl&� BUWinham. ME 04006 Slim 1-S]E66ffiD] Beer MICR C,. BmnY Baron 399 CMG ROM] IW%caner YF0E61] 18*209� WkMwzew WMans ESOy SmP RRI BOM IWC IM%wrvf 41IMpo4 ME OOSW 1 W/ 75469 Maine BL.em Fn Proiuus WeMYNewrnger Po' 10066 Owner 16 Mme HI1 RW M Paris. ME 04239 I-20]81 AMbe LlanEm GreeNoM Barbm Hmr'ilbn 2a Gmly Rwa IM%Omer CM IsMane C¢ ME Qtl i I -W-0 %10 PW2 93-2]6 7 II.B.Depwiman, e..E��,a. „..aew,emw. o�Innspona�lnn nim Federal viation Administration APR 2 2 7993 Mr. David H. Pellegrino ONE Liaison Officer City of Bangor Bangor City Hall 73 Harlow Street Manor, ME OA40' Dear Mr. Pellegrino This letter confirms. your recent telephone conversation with Sherri Dottin, of our office, and have Micklin of our headquarters Office of Civil Rights, concerning the Newspaper, Magazine, and Giftshop Concession at Bangor International Airport. As we understand it, Fenton Hill submitted a proposal in response to a Request for Proposals (RFP7 issued by the City of Bangor for operation of this Concession. Subsequently, the city determined that Fenton Hill's proposal qualified under the -evaluation criteria as full responsive and the best of three Proposals submitted. The other proposals were made by W.H. Smith and Mr. Paperback, the latter being a local firm and the present incumbent. We understand that while the city has asked all three proposers to submit additional information, the proposal submitted by Mr. Paperback failed to include a provision for making capital improvements and failed to respond to the disadvantaged business enterprise (DBE( requirement set forth in the HIS. we also understand, further, that some members of the city council of Bangor may wish to allow Mr. Paprback to modify its proposal because it is a local firm, even though the city's own policy prohibits the use of a local geographical preference. In our telephone conversation, We made reference to the minutes Of a city council committee meeting, in which a Mr. Stone describes Fenton Hill as the "qualifying firm" and Mr. Paperback as the "local firm." 93 -2)B - The Federal Aviation Administration (FAA) has a concern that further action by the City of Bangor to allow Mr. Paperback to amend its proposal may violate the nondiscrimination provisions of 49 CPR Part 23, the U.S. Department of Transportation regulation, Sections 23.93(a)(1) and 23.7. These provisions were incorporated into the AFP at Section 12. In particular, our concern is that Fenton Hill, which several airports have certified as a DBE, submitted a fully responsive proposal; nevertheless, the city is considering action to permit Mr. Paperback to amend its proposal, which the city apparently deemed to be non-responsive. We believe that such action, if taken, would constitute prima facie evidence of discrimination against Fenton Hill based on race and/or sex. Accordingly, we request that you fully inform our office of further actions that the city intends to take with respect to selection of the retail concessionaire. It is our intention to assist the city so that it complies with the provisions of 49 CFR Part 23. If we can be of further assistance, please contact Sherri Dobbin on 617-273-7317 of my staff. Sincerely, The M ager, Civil Ri hts Staff FENTON HILL FLORIDA, INC TAMPA INTERNATIONAL AIRPORT • LEVEL 3 • TAMPA. FL 33607 TELEPHONE: (813) 2M3639 • TELEFAX: (013) 6 3874 TO: David Pellegrino EE FROM: Susan Stackhouse 1.1rd0. SUBJECT: Newsstand Proposal 2ZAAf In reference to our telephone conversation and your subsequent fax of the Summary of Proposals, I believe there may be some confusion as to the projected payments. I interpreted the request for proposed "rental percentages if more - than the 108 - 128 established as the minimum percentages of Grass Annual Bales" per page T of Appendix B to mean a single percentage as it applies to annual sales. Because we projected annual sales to be in excess of $1,000,001 each year, our percentage rent would be 158 each year. The graduated percentages are simply a "safety net" in the event that annual sales fall below $1,000,000. As a result of this interpretation, our projected payments in year One would total $183,488 or $1,013,996 for the five year period (excluding modifications). These projected rent payments are specified in our proforma as Rent Expense -Minimum and Rent Expense- Additional. I find it very difficult to understand why a proposer would assume that the minimum annual guarantee and the percentage rent should be added together. On page 6 of Appendix B under Section 9, it clearly states "The proposer shall pay to the City, during each contract year of the term of this concession, a minimum .annual guarantee and the applicable percentages of gross revenue, whichever i greater". I hope that this clarifies the situation. Please call me if you have any additional questions. /01.93-278 46� 40VIA FACSpl - (207) 947-0341 WH SMITH Bangor, MB 04401 Dear David: Thant; you for the comparative hfortnation you sent me on Friday. I reviewed the information Friday night and it became apparent tha[eitb drl a n misinterpreting the tnmpatative figures you provided or true is possibly some confusion concerning the rent portion of our proposal. I attempted to call you Monday only to learn that you were on holiday. Due to the fact than, in the RFP and in the contract, percentage rent IS also referred in as "additional rent", we assumed the rem payments that would be made would be the minimum annual guaranine plats the quoted percentage tent. In fact, as you review the section of our proposal entitled "Proposed Payments" (a copy is attached), you will see that our rent is proposed in that fashion, indicating our intent to pay our quoted $50,000 per year plus the percentages quoted. If I am interpreting your "Summary of Proposak" correctly, the intended interpretation of our proposal would allow you to add $5Q000 to each year of our "Projected Payments' and $250,000 to both categories of 'Proposed Payments/Modifications'. I have entered these changes on the attached copy of your form. That corrections seem to place us ahead of the other proposers as far as revs is conceded, which is indicative of our desire N be of service to the City of Bangor and your ant traveler. We are familiar with your air traveler and we are confident that we can provide your traveler, your city and your airport with superior facilities, merchandise and service. We me in hopes that your f dings, having compared us He Other Proposers in all areas of performance, coupled with this clarification of the not issue, will place W H Smith m a favorable position He become your retail concessionaire. I will attempt to touch base with you on Tuesday N see if any further information might be helpful. Very truly s, B u�-- aDa'u Senior Airport Real Estate Manager 3Dlbam co: W. Bob Ziegelaar (via Facsimile (20n 945-5998) April 19, 1993 3200 windy Hili Road Suite 1500 Wast Tosser Mariana, Georgia 30081 Mc David Pellegrino purchasing Department ca�ss rl ( tcr,u est -1352 City of Bangor, City Hall 73 Harlow Streed Bangor, MB 04401 Dear David: Thant; you for the comparative hfortnation you sent me on Friday. I reviewed the information Friday night and it became apparent tha[eitb drl a n misinterpreting the tnmpatative figures you provided or true is possibly some confusion concerning the rent portion of our proposal. I attempted to call you Monday only to learn that you were on holiday. Due to the fact than, in the RFP and in the contract, percentage rent IS also referred in as "additional rent", we assumed the rem payments that would be made would be the minimum annual guaranine plats the quoted percentage tent. In fact, as you review the section of our proposal entitled "Proposed Payments" (a copy is attached), you will see that our rent is proposed in that fashion, indicating our intent to pay our quoted $50,000 per year plus the percentages quoted. If I am interpreting your "Summary of Proposak" correctly, the intended interpretation of our proposal would allow you to add $5Q000 to each year of our "Projected Payments' and $250,000 to both categories of 'Proposed Payments/Modifications'. I have entered these changes on the attached copy of your form. That corrections seem to place us ahead of the other proposers as far as revs is conceded, which is indicative of our desire N be of service to the City of Bangor and your ant traveler. We are familiar with your air traveler and we are confident that we can provide your traveler, your city and your airport with superior facilities, merchandise and service. We me in hopes that your f dings, having compared us He Other Proposers in all areas of performance, coupled with this clarification of the not issue, will place W H Smith m a favorable position He become your retail concessionaire. I will attempt to touch base with you on Tuesday N see if any further information might be helpful. Very truly s, B u�-- aDa'u Senior Airport Real Estate Manager 3Dlbam co: W. Bob Ziegelaar (via Facsimile (20n 945-5998) 3T 27r F FENTON HILLFLORIDA, INC. M TAMPA INTERNATIONAL AIRPOHI • LEVEL 3 • TAMPA, FL 338% TELEPHONE' (8131 813) 2] 0 63838 1 TELEFAX' (813) On 3874 May 20, 1993 Robert Ziegelaar Airport Director Bangor International Airport 287 Godfrey Blvd. Bangor, Maine 04401 Dear Mr. Ziegelaar: I regret that neither I nor my partner will be able to attend the City Council meeting on May 24 due to the fact that we will be opening a new shop at O'Hare International Airport at that time. However, I have enclosed a letter directed to the Council which should help to counter the charges being made by Mr. Paperback. Would you please give this letter to the Council President if you feel it is appropriate. I appreciate your recommendation of Fenton Hill Florida, Inc, for the concession and remain optimistic that we will soon be operating at your fine airport• Sinc4tac yours 5 / Ouse � resident TUFFENTON HILL FLORIDA. INC. TAMPA INTERNATIONAL AIRPORT • LEVEL 3 • TAMPA, FL 336W TELEPHONE: (813) 276-3639 1 TELEFAX (813) 811-3 WC May 20, 1993 Dear Members of the Bangor City Council: As you know, my company, Fenton Hill Florida, Inc. is being recommended by the Airport Committee for the award of the News 8 Gifts Concession at Bangor International Airport. We worked hard to prepare a responsive, competitive proposal which will benefit the Airport, the City, and our Company and we thank the Committee for their recommendation. However, it has come to my attention that other proposers have raised several issues in an effort to discredit us Since I unfor- tunately could not attend the meeting in person, I will refute these charges in this letter. The most outrageous charge questions the legitimacy of our DBE status. Fenton Hill Florida was first certified as a THE in 1986 and since then has received certification by the 12 FAA -related agencies to which we have applied. The Company is controlled by myself and my partner, Barbara Geller. Both Mrs. Geller and I are married and both have husbands who operate .their own businesses. However, neither husband is involved in Fenton Hill Florida. In addition, Duty Free International, Inc. has a minority interest In the Company. DFI1s involvement is purely advisory and not one of control or day-to-day management. I realize that the similarity in names may s confusing but Fenton Hill Florida, Inc. and Fenton Hill American Ltd. -a are two entirely separate companies. Mrs. Geller and I adopted the name Fenton Hill Florida in 1989 in an effort to obtain the favorable pricing from vendors enjoyed by Fenton Hill 'American. We realize w that perhaps this name change was not a good idea as it has proven confusing to 'a number of airports. However, it isonly a name. It has been suggested that having both Fenton Hill -Florida and Fenton Hill American operating at the Airport will result in high selling prices. This concern is completely unfounded. Fenton Hill Florida has its own retail pricing philosophy. We have found the "gouging" the airport customer is a detriment to sales. As a result we maintain prices that are no more than 108 above off - airport prices. A list of retail prices was submitted i r pro- posal and we would invite airport management to survey our prices at any time to guarantee that we abide by what was proposed. Finally, I understand that there is some concern as to whether the concession will be profitable in light of our proposed rent structure and expenditure on improvements. Prior to submitting a proposal, we carefully analyze the economic viability of the con- cession. As you can see from the proforma statement included i the proposal, we believe that with the terms we proposed, the concession will be profitable. We currently operate concessions i six airports and every one is profitable. In each of these operationse our first-year sales and profit numbers have been within 10% of our proforma projections. I hope that this. has answered any questions you might have had. Fenton Hill Florida, Inc. is an experienced, qualified DBE airport concessionaire; and we are anxious to operate at the Bangor Inter- national Airport. I trust that the Council will vote to award to us the concession contract in question. Sincer y, �san H. SCkhouseJ President