9.C.
City Council Meeting - FINAL (AMENDED)
- Meeting Date:
- 03/04/2025
- From:
- Brian Gall, Airport Director
TITLE:
Consideration and Approval and Ratification of Contract: Approve the Concessionaire Services License Agreement with Hi-Line Snack and Vending, Inc. to add two micro-markets and a coffee kiosk at the Flagstaff Pulliam Airport.
STAFF RECOMMENDED ACTION:
- Approve the Concessionaire Services License Agreement with Hi-Line Snack and Vending, Inc. to add two micro-markets and a coffee-kiosk at the Flagstaff Pulliam Airport; and
- Authorize the City Manager to execute the necessary documents.
Executive Summary:
On November 14, 2024, the City of Flagstaff issued a Request for Proposals for qualified food and beverage vendors to provide two self-serve micro-market food and beverage locations, including, at least one coffee kiosk within the Flagstaff Pulliam Airport ("Airport"). The two locations are inside the Airport Terminal; with one micro-market/coffee kiosk in the Terminal lobby and one micro-market in the passenger hold room beyond the security check point. Micro-markets are unattended, self-service stores with a variety of food and beverage items, including fresh food options, such as salads and sandwiches. The equipment in the Terminal lobby will include a coffee kiosk.
Two prospective vendors submitted proposals and an evaluation committee of City staff reviewed and scored the proposals. Through this solicitation process and the evaluation of the vendors that submitted proposals, staff is recommending the selection of Hi-Line Snack and Vending, Inc. ("Hi-Line") to provide the micro-markets and coffee kiosk services. Photographs of the proposed equipment are attached to this staff summary. The Concessionaire Services License Agreement term is for ten (10) years with two (2) optional five-year renewals.
Two prospective vendors submitted proposals and an evaluation committee of City staff reviewed and scored the proposals. Through this solicitation process and the evaluation of the vendors that submitted proposals, staff is recommending the selection of Hi-Line Snack and Vending, Inc. ("Hi-Line") to provide the micro-markets and coffee kiosk services. Photographs of the proposed equipment are attached to this staff summary. The Concessionaire Services License Agreement term is for ten (10) years with two (2) optional five-year renewals.
Financial Impact:
Project Name: Concessionaire Services License Agreement
Cost: The Licensee will provide concessions payments of a percentage of their quarterly gross receipts to the City.
Cost: The Licensee will provide concessions payments of a percentage of their quarterly gross receipts to the City.
Policy Impact:
None
Previous Council Decision or Community Discussion:
None
Options and Alternatives to Recommended Action:
- Approve the Concessionaire Services License Agreement with Hi-Line for two micro-markets and a coffee kiosk at the Airport; or
- Provide staff additional direction.
Background and History:
The Concessionaire Services License Agreement with Hi-Line Snack and Vending, Inc. will bring two micro-markets and a coffee kiosk to the Flagstaff Pulliam Airport ("Airport") for the benefit of fliers, employees housed at the Airport, and citizens visiting the Terminal.
The Airport is currently served by American Airlines with daily direct flights to Phoenix Sky Harbor International Airport and Dallas Fort Worth International Airport. The 2024 projected passenger volume for the Airport is approximately 160,000 enplanements and deplanements (passengers boarding and arriving from commercial flights). Flight hours vary seasonally, but the first departure is commonly at 6:00 a.m. and the last arrival is commonly at 11:00 p.m. To accommodate this flight schedule, the Terminal operating hours are 4:00 a.m. to 12:00 a.m. In addition to employee and passenger traffic, the Airport sees individuals dropping off and picking up passengers. The Terminal houses the employees of the Airport administrative offices, the Flagstaff administrative offices of American Airlines, and the offices of the Transportation Security Administration. The Terminal is also the main location for car rentals in northern Arizona (Alamo, Avis, Budget, Enterprise, Hertz, and National) and the Terminal visitors include car rental customers who visit the Airport specifically for this reason.
In addition to adding the micro-market/coffee kiosk to the Terminal lobby, the City is currently conducting a large renovation project for a new City-operated and City-staffed Visitor Center in the Terminal lobby with a dining area with café-style tables and chairs directly adjacent to the Visitor Center (and the micro-market/coffee kiosk). The City is pursuing the acquisition of a liquor license at the Visitor Center to sell single-serve beer and wine beverages. Travel goods and souvenirs will also be sold at the Visitor Center. It is intended that the seating area and the single-serve beer and wine beverages will serve as a compliment to the products sold at the Visitor Center and the micro-market/coffee kiosk. A second micro-market will be located inside the secure passenger holding area.
Procurement staff ran a formal solicitation through a Request for Proposals on PlanetBids from 11/14/2024 to 12/13/2024. Published on 11/21/2024 and 11/28/2024 in the Arizona Daily Sun. The solicitation pulled two responsive proposals. A team of six evaluators scored the proposals to determine which firm was most qualified to work with the City. The following is the final scoring. Hi-Line Snack and Vending, Inc. was determined to be the most advantageous contractor to work with the Airport in this project.
Hi-Line Snack & Vending, Inc. - 537
Mountain High Markets, LLC - 443
The Airport is currently served by American Airlines with daily direct flights to Phoenix Sky Harbor International Airport and Dallas Fort Worth International Airport. The 2024 projected passenger volume for the Airport is approximately 160,000 enplanements and deplanements (passengers boarding and arriving from commercial flights). Flight hours vary seasonally, but the first departure is commonly at 6:00 a.m. and the last arrival is commonly at 11:00 p.m. To accommodate this flight schedule, the Terminal operating hours are 4:00 a.m. to 12:00 a.m. In addition to employee and passenger traffic, the Airport sees individuals dropping off and picking up passengers. The Terminal houses the employees of the Airport administrative offices, the Flagstaff administrative offices of American Airlines, and the offices of the Transportation Security Administration. The Terminal is also the main location for car rentals in northern Arizona (Alamo, Avis, Budget, Enterprise, Hertz, and National) and the Terminal visitors include car rental customers who visit the Airport specifically for this reason.
In addition to adding the micro-market/coffee kiosk to the Terminal lobby, the City is currently conducting a large renovation project for a new City-operated and City-staffed Visitor Center in the Terminal lobby with a dining area with café-style tables and chairs directly adjacent to the Visitor Center (and the micro-market/coffee kiosk). The City is pursuing the acquisition of a liquor license at the Visitor Center to sell single-serve beer and wine beverages. Travel goods and souvenirs will also be sold at the Visitor Center. It is intended that the seating area and the single-serve beer and wine beverages will serve as a compliment to the products sold at the Visitor Center and the micro-market/coffee kiosk. A second micro-market will be located inside the secure passenger holding area.
Procurement staff ran a formal solicitation through a Request for Proposals on PlanetBids from 11/14/2024 to 12/13/2024. Published on 11/21/2024 and 11/28/2024 in the Arizona Daily Sun. The solicitation pulled two responsive proposals. A team of six evaluators scored the proposals to determine which firm was most qualified to work with the City. The following is the final scoring. Hi-Line Snack and Vending, Inc. was determined to be the most advantageous contractor to work with the Airport in this project.
Hi-Line Snack & Vending, Inc. - 537
Mountain High Markets, LLC - 443
Connection to PBB Priorities and Objectives:
None
Connection to Regional Plan:
- Goal T.10. Strengthen and expand the role of Flagstaff Pulliam Airport as the dominant hub for passenger, air freight, public safety flights, and other services in northern Arizona.
- Policy T.10.1. Maintain and expand Flagstaff Pulliam Airport as an important link to the national air transportation system
Connection to Carbon Neutrality Plan:
None
Connection to 10-Year Housing Plan:
None