HomeMy WebLinkAbout2000-03-27 00-143 ORDER!3l
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Passage_Fhst Reading_Refural
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OUNCIL ACTIONh
Date: Mas2], 2000 Item No. OLL143
61tem/Subjecl Airport Concessionaire Lease Agreement
Responsible Depmtrnent: ArportYPumbasing
Commentary:
The following contract award W Stellar Partners, Inc. was reviewd by the Finance Committee on March
20n, and referred W the City Council with a recommandation for approval.
See attached memorandum from Bob Ziegelaar for details. The Stepan Partners proposal was the only
proposal received in response to the City's RPP.
Departm ead
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City Manager
r Associated Wi ation: Furnace Commitee Recommendation and bid tabulation
Budget Approval
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Legal Approval:
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Passage_Fhst Reading_Refural
Assigned to cowaoo alaucMcce March n, 2000
CITY OF BANGOR
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Concessions
By the City Coanoit of the My of Bangor.
OEDEEEDr
7nA David N. Pellegrino, Purchasing Agent is hereby authorized to execute a five year
contract with Stellar PSMers, Inc. for the book shop, gift shop and duty Gee conceesions at the
Bangor hnemational Airport
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W-143
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Title, Authotiziug Contract Aeard to
stelLr Partners. for. for Airport
C cessiosa
......................................
Councilman
BGRr MEMORANDUM
To:
The Finance Committee
Cc:
City Manager, Purchasing Agent
From:
Bob Ziegelaar, Airport Director
Re:
Airport Concessionaire Lease Agreement
Attachments:
1
Date:
March 15;2000
Please find attached a summary of the pertinent details involved in the proposal received
fiom Stellar Partners regarding the rights m conduct retail sales at Bangor international
Airport.
You may be aware that Stellar farmers is the new name of the operator previously known as
Fenton Hill Florida, who was the successful proposer for the Bookshop concession a little
more than five years ago. This time the operator is proposing to operate all retail operations
(other than the restaurantlounge concession) and it has obtained concurrence from the Gift
Shop and Duty Free Sales concessionaires in doing so. In fact, Stellar Partners would act as
the "Master Concessionaire" and subcontract to the other two operators in tum. By doing so
Stellar farmers would manage all three operations and would be responsible for the staffing
and stock keeping at all tree stores. This is a system that has been proven in work at other
airports and,generally, results in more efficient services. Given the clear pressure upon this
airport to seek me greatest possible efficiencies in all meas, Airport Management
recommends that the proposal by Stellar Parmers be accepted.
Aside from the above considerations, management further bases its recommendation on the
following factors:
- Stellar Partners has been a solid performer over the past five years
- The previous contract has been Ally fulfilled, including the required substantial
renovations and capital outlays
- The operator has not seen the traffic levels it reasonably could have expected during the
past five years but did not seek changes in its conhactual obligations
- As a DBE operator the operator contributes directly to the Airport reaching its DBE goals
- The operator's fin inial record keeping has been exemplary
Please feel fice to contact me regarding any aspects of this item.
Summary ofConcusionaire RFP Response
The Airport Department demand an RFP for the booketore, gift shop, and duty free store in the Airport. We received
me proposal that is fiam Steller Parmem, Inc. who is the current operator of Ne introduce,
Sol list Pumets, had. would em as a mazler concessionaire; that is IM operation would be combined under me
anninvart umbrella and one contract. Stellarxrould wbwnaarr Ne Duty Free shop W World Duty Flee
Americas, Nu (World) and Me gift shop would be subcontracted to Mmtage, Enterprise; Joe. girl the
(hrasshopper Shop). Both Worts antl Manage currently, no Ne respective stores.
The RFP called fora minimum ovemde payment of S6,000 for the dutyfree and gift shops and $50,000 for Me
booksMe. Stillarhas ageedto Me minimums. The override wheiule mluested in Me RFP was not a g dumed
Mile, but a Wile when the overme pm'mvge is based on mil yearly sales and is applied to Ne firm dollar of
Mala. Sailer has closed a Drummed scale, however, forme bookstore, they have otYmW a longer percentage
override. Based an Me projected sales for Me five years, the gradumed scale will sedum metal overrides IW VO,OCQ
or $4,000 per year.
Stiller is committed to investing $10,000 in the Imalmoure in the IAB tttminal including a new cW-out our and
signage. ney will also invest SIO M in the gift shot includes anew cash wrap, additional lightln& and some
casmencrepvrs.
Sxllaz Paztnen, Inc. is cmifiW by Mineen airyomto M a Disadrenmged Business Enatprise (DEE). Divinities
indicated thea wine morons lave reciprocity proarvision for DBE cerfification, The Airport will pursue the possibility
ofusmgtWipro ly and hit is notpossibl5 will work with Sallerw be arti(ed bythe Scam of Maine.
The three wncessimahes that will be involved with this conMct have worked well with the Airport admin6mtion.
ney know ora AiMon end bringacombined 20 yeah ofesperimce at Mis AiTOA. AlMaugh the override is
slightly lowerthen requeskQ it is in the AmpoWs befit to accept Mis proposal.
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