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HomeMy WebLinkAbout2000-03-27 00-143 ORDER!3l ow cad For: Passage_Fhst Reading_Refural ^ 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 Mnaaga's Covwvrts.TAaoihu�aP+a fw.nnr.w:wP wJFh t/4 �La�]p.P <'svn+u.iu t. City Manager r Associated Wi ation: Furnace Commitee Recommendation and bid tabulation Budget Approval Pirence ' Legal Approval: oh a !3l ow cad For: Passage_Fhst Reading_Refural Assigned to cowaoo alaucMcce March n, 2000 CITY OF BANGOR (TITLE.) MrbBr, .... A,u h tainsco�Awa w stellar earmers, L fop wpon _..... 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 l'rYl1 W-143 0R DGR 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. linens, Marty 16, aura Veym 930,24 AM