Title
Commuter Station Concession Services
History
For many years, the Village has contracted with a variety of contractors to provide concession services in the commuter stations at 143rd Street and 159th Street. In 2013, the vendor who had been operating as concessionaire at both stations chose not to continue in this business. There were several weeks where there was no vendor at either station. At that time, the owner of Amano Vivere Café came forward and offered to fill the gap as concessionaire at 143rd Street for nine weeks as a temporary solution. That arrangement was subsequently renewed for a one-year term. The 153rd Street station has remained without a vendor during this period.
Recently, there has been some interest in the concession services at the 153rd Street station. Staff is preparing a Request for Proposals (RFP) for this service. Staff recommends that the RFP be a multi-year agreement and allow vendors the option to provide proposals for one or both stations. The 153rd station has immediate availability and the 143rd has availability beginning in September 2014 when the existing agreement expires.
Since 2009, the Village Board has reduced or waived the requirement that the vendor pay 6% total sales to the Village. The reason for the waiver is that there have been very narrow profit margins for these concessionaires. Commuters often choose to stay in their cars or in the adjacent warming shelters while waiting for their trains and they do not enter the station at all. The cost to the Village to provide space to a vendor in the station is minimal as the lights and heating/cooling are already provided during to the station during those hours. Ancillary water consumption and power for refrigeration are the primary cost. In return, the vendor serves as the eyes and ears for the Village letting us know when there are issues raised by commuters or facility concerns with restrooms or other amenities.
Prior to releasing the RFP, staff is requesting that the Committee discuss the terms of the future agreement(s). Those terms will include length of the contract, % fee amount, if any, and the approval of allowing vendors to select whether they wish to provide a proposal for both stations or just one.
On February 3, 2014, this item was reviewed by the Finance and Information Technology Committee, recommended for approval and referred to the Village Board of Trustees for consideration.
Financial Impact
None
Recommended Action/Motion
I move to approve producing a Request for Proposals for concession services at the 143rd Street and 153rd Street commuter stations;
And
Approve waiving the prior fee of 6% total sales due the Village for the duration of the service agreements.