The URL can be used to link to this page

Home My WebLink About9/15/1999 - STAFF REPORTS (13) DATE: September 15, 1999 TO: City Council FROM: Director of Aviation TERMINAL CONCESSION DEVELOPMENT PROGRAM RECOMMENDATION: That the City Council authorize staff to proceed with contract negotiations for Retail, Food and Beverage Outlets at Pahn Springs International Airport with The Paradies Shops,Hams Enterprise, Shades and Shirts Inc.,and Anton Airfood. BACKGROUND: On January4, 1999,Notice was given via a"Request for Proposals(RFP 08-99)for Specialty Retail, and/or Food and Beverage Outlets at Palm Springs International Airport" that the City of Palm Springs(City)was seeking qualified retailer(s)to operate food,beverage and retail concessions at Palm Springs International Airport(Airport). Two meetings inviting local interest groups were held on January 19, 1999 followed by a Pre-Proposal on January 21, 1999. The purpose ofthe meetings were twofold:first to conduct alocal outreach program and secondly to discuss the requirements and objectives of the RFP. Approximately 70 persons were in attendance,representing in excess of 35 local area companies. Proposal were accepted on March 30, 1999. Four(4)proposals were received,they included: 1. Harris Enterprise- "Gifts to Go!" Location#1 - Souvenir&Specialty Gift Store/Southwest Theme i 2. HDS Retail North America- "Press Relay" Location#9-News,Books, Sundries Location#15 -News(Kiosk) Location#19-Specialty Gift 3. Reyes Ca& (Cover Letter stated they had changed their concept to 'Reyes Periodicals") 4. Shades and Shirts Inc. -"Desert Resortwear" & "Sunglasses/Shades International' Location#1 &#8-Resort and Casual Wear Location#10-Sunglasses The Department of Aviation in conjunction with the Procurement Division reviewed all proposals for completeness and adherence to the RFP requirements. All proposals received were for retail outlets,there were no food and beverage. Locations(spaces)and services that were not proposed include:Location's #2-Cocktail Lounge; #3-Full Service Restaurant; #7-Bar; #11 -Fast Food; #14 - Coffee Carl; and #17 - Coffee Stand. From this review two local retail proposers and proposals were recognized as responsive (one in part) and submitted to the City Manager for consideration and direction. There were four(4)national firms that attended the Pre-Proposal meeting and expressed serious interest. Each of these firms submitted letters expressing desire to establish relations with the Airport In lieu of providing a formal written response to the RFP, some offered alternative proposals while others addressed various concerns and issues as to"why"they did not make a formal /10 4C pa � Terminal Concession Development Program Page 2 submission;however,all four firms still clearly conveyed an interest in entering negotiations and/or offering alternate proposals. These firms included: 1. CA-One Inc. (Incumbent Concessionaire,providing R,F&B) 2. Host Marriott Services(Company offers services in R,F&B) 3. The Paradies Shops/Anton Airfood(Team together for R,F&B) 4. W.H. Smith,Inc. (Company focus on Retail Services only) Upon completion of the initial review process,the Department submitted responsive proposals and alternative approaches for the Terminal Concessions Development Program to both the City Manager and the Palm Springs Regional Airport Commission seeking direction. The Commission was briefed that in accordance with the RFP, an evaluation committee was established by the City Manager to proceed accordingly with the responsive proposers and the above listed national firms. Additionally,in discussion with the City Manager,it was decided that the four(4)national firms who have continued to express desire in providing concessions at PSP would be invited to make a formal visual representation to an evaluation committee on the development of retail, food & beverage concessions at the Airport. The Airport Commission supported this course of action. The two responsive proposers in the first step RFP process include: 1.)Harris Enterprise; and 2.) Shades&Shirts. As a point of clarification,Shades&Shirts submitted proposals(listed above)for three (3)retail locations of which one (1)was deemed responsive, Shades International. Formal presentation to the evaluation committee were scheduled August 10-11, 1999. The evaluation committee, as established by the City Manager, consisted of three staff members from the Department of Aviation, one staff member from the office of the Assistant City Manager for Operations, the Procurement Division Manager, two Airport Commissioners, the Director of Economic Development,and the American/American Eagle Station Manager at PSP. The evaluation committee unanimously selected the joint team proposal ofThe Paradise Shops and Anton Airfood. With the opening of the Phasq HA Terminal in November,time is of the essence. Staffis continuing to negotiate with the existing concessionaire regarding an early out(buyout)of the remaining term oftheir agreement,or to provide temporary facilities as required by the agreement in-lieu of an early out. At this point, staff is requesting to proceed with negotiations with four individual firms to provide retail,food and beverage concessions at the Airport. The proposed firms in the locations shown are as follows: RETAIL: Paradies Shoos Barris Entggmrise Shades and Shirts Inc. Desert Marketplace- Space 7 Gifts to Go! -Space 1 Shades Int'l-Space 10 PGA Tour Shop-Space 8 Desert News-Spaces 9, 15,and 19 FOOD&BEVERAGE: Anton Aufood Palm Springs Brewing Company-Space 2 Celebrity Bistro-Space 3 Desert Classic Grille-Space 11 Terminal Concession Development Program Page 3 Seattle's Best Coffee-Space 14 Seattle's Best Coffee and Freshens Frozen Yogurt and Ice Cream-Space 17 Staff is also continuing to work closely with the City Attorney's office on the proposed terns and conditions of the concession agreements. At its meeting of August 25, 1999, the Airport Commission was given an in-depth presentation on the joint team proposal selected and highly recommended by the evaluation committee. The Airport Commission voted unanimously to recommend City Council approve proceeding with contract negotiation as recommended by the evaluation committee and also with the two local firms who were deemed responsive in the RFP process. RIDDLE HAROLD E. GOOD,CPPO Director of Aviation Proc er 11w— APPROVED: APPROVED: LEN F. SMOOT,A.A.E. ty er Assistant City Manager- Operations Attachment: 1. Minute Order D� 3 MINUTE ORDER NO. ��'•- AUTHORIZING STAFF TO PROCEED WITH CONTRACT NEGOTIATIONS FOR RETAIL, FOOD AND BEVERAGE OUTLETS AT PALM SPRINGS INTERNATIONAL AIRPORT WITH THE PARADIES SHOPS, HARRIS ENTERPRISE, SHADES AND SHIRTS, INC., AND ANTON AIRFOOD. -------------------- I HEREBY CERTIFY that this Minute Order authorizing staff to proceed with contract negotiations for retail, food and beverage outlets at Palm Springs International Airport with The Paradise Shops,Harris Enterprise,Shades and Shirts, Inc., and Anton Airfood was adopted by City Council of the City of Palm Springs, California in a meeting thereof held on the 15th day of September, 1999. PATRICIA A. SANDERS Acting City Clerk D