Title
AUTHORIZATION TO ENTER INTO A CONTRACT WITH UCG ASSOCIATES FOR CONCESSION PROGRAM MANAGEMENT
SPECIFICATION P-20011
Body
To the Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
It is recommended that the General Superintendent and CEO or his designee enter into a contract with UCG Associates (“UCG”) for the purpose of concession program management. The contractor was selected pursuant to a publicly advertised Request for Proposals. No work may commence, and no payment shall be made to vendor prior to the execution of a written agreement.
II. Award Information
Company: UCG Associates
150 N. Michigan Avenue
Suite 2930
Chicago, IL 60601
Company Type: Illinois Corporation
Majority Interests: Mr. Anthony Drake 34.34%
Ms. Yovette L. Drake 24.64%
Ms. Sharon Sarmiento 15.67%
Contract Type: Term Agreement
Contract Term: Three (3) years with, two (2) additional one (1) year extension options.
Contract Amount: See Exhibit A
Scope of Services: Licensing and managing concessionaires for all of Chicago Park District (“CPD”)’s food and beverage, retail, and other consumer-related services as outlined in “Chicago Park District Code - Chapter IX - Concessions and Food Services”
Affirmative
Action Goals: The Minority- and Women-Owned Participation for this contract include: 75% Minority-Owned and 10% Women-Owned.
Authorization: Authorize the General Counsel to include other relevant terms and conditions in the written Agreement. Authorize the General Superintendent to execute the Agreement and the Secretary to attest as to the signing of the Agreement and keep an original copy of the Agreement on file.
III. Budget and Financial Information
Budget Classification: Operating
Fiscal Year: 2020 - 2023
Source of Funds: 001.9310.9310.626035.00001.01.01.00001
IV. Procurement Information
Specification Number: P-20011
Date Advertised: May 28, 2020
Pre-submittal via Tele-Conference June 11, 2020
Date Proposals Due: July 6, 2020
Number of Proposals Received: Two (2)
This contract was publicly advertised as a Request for Proposals (“RFP”). The RFP discussed the scope of services (“scope”) for the management of the CPD concession program in 96 pages and also included 2 exhibits that supplemented the information in the scope including: (i) 2020 locations, including available, unavailable, and focus area parks; (ii) 2019 financial reports reflecting gross concession sales, rent, and revenue share to CPD.
The Evaluation Committee (“EC”) was comprised of five (5) voting members, all CPD staff and one (1) non-voting member, also a CPD staff person. They began their evaluation of the proposals at their first meeting on August 17, 2020. The EC met again on August 24, 2020 and decided at the conclusion of their three hour meeting to invite both proposers to oral presentations. Oral presentations were held on September 1, 2020, and each session lasted approximately two and one half to three hours. The EC met twice following oral presentations, and at the end of their two hour meeting on August 27, 2020 they decided to send a request for Best and Final Offers to both proposers. Purchasing received both Best and Final Offers on September 17, 2020, and the EC met for two hours the same day to continue their evaluation and review of the Best and Final Offers. The EC concluded their evaluation by unanimously recommending UCG Associates for award.
V. Explanation
The CPD requires the services of a management firm to oversee the concession program. The CPD currently has over 212 facilities and/or grounds that are offered to concessionaires for the purpose of selling food and beverage, retail merchandise, and other consumer-related services. The concession program generates approximately $3 million dollars in annual revenue to CPD.
Area of Responsibility
The area of responsibility for the manager of the concession program is districtwide with the exception of the following areas: (i) Soldier Field, (ii) Huntington Bank Pavilion, (iii) Museums in the Parks, (iv) Golf Courses & Driving Ranges, (v) Harbors. However, from time to time Manager may be asked to perform or assist with any or all services for these locations.
The concession management responsibilities include:
• Procuring the highest possible quality and variety of foods, commodities, and services in order to enhance the use of the parks, providing comfort and convenience to patrons at reasonable prices through a competitive notice of availability process.
o Assure park patrons of the friendliness and convenience of the CPD, thereby enhancing the CPD’s image
• Providing concession management at the industry’s highest standards
• Providing innovative and creative retail, dining, and service concepts, themes, and products that have broad customer appeal and are representative of Chicago
• Developing and introducing a comprehensive concession marketing strategy enhancing concession business opportunities and optimizing concession revenues throughout the CPD
• Providing business opportunities to minority and woman-owned business enterprises and local firms
• Ensuring that all concession spaces and stand-alone locations maintain consistent operations and adhere to aesthetic appearance standards designed to enhance the quality of the concession experience within the CPD
UCG Associates has 30 years of experience of managing and broad range consulting on concessions. Their background and proficiency includes curation and design, space planning, merchandising, and program implementation. UCG Associates has a proven record of managing concessions portfolios in a manner that has enhanced customer experience, facilitated concessionaire success, and has resulted in increased revenue. Their approach envisions a concessions program that is not only a service provider for park visitors and a revenue generator for CPD, but is a potential vehicle for community development, life skills training, and civic enhancement.
Most notably, UCG Associates has provided concessions program management and consulting to the Chicago Department of Aviation at both Chicago O’Hare and Midway International airports for more than 20 years. The program consists of approximately 214 concession locations over multiple concourses covering 7,627 acres. In its capacity with the Chicago Department of Aviation, UCG Associates has fulfilled planning, development, and implementation responsibilities including leasing, concession solicitations, and program enhancement on all the key concessions projects at both ORD and MDW. The firm was instrumental to the Midway Airport planning and development of the Concessions Redevelopment Program-a $75 million redevelopment project. Furthermore, UCG Associates has provided concession development services for airports nationwide including; Miami International Airport, Tampa International Airport, San Antonio International Airport, and John Wayne International Airport.
UCG Associates has extensive experience working with park systems with demonstrated success working with the National Park Service as well as Tennessee, Wyoming, Oregon, Ohio, and South Dakota State Parks. UCG Associates has demonstrated the capability to plan for and oversee concessions that have seasonal visitation patterns. They have successfully executed strategic marketing plans to increase visitation opportunities and revenue during off-season periods at the Statue of Liberty, Mt. Rushmore, and Olympic National Park.
The UCG Associates team will utilize their breadth of experience to evaluate the highest and best use of space allocation, deploy their concession management and lease administration portal, and launch an education and mentorship program to grow and develop small minority and women-owned businesses. The firm will expand food truck participation and introduce ghost kitchens to increase access to affordable gourmet food and award-winning concept offerings. The implementation plan includes a strategic realignment of the overall concession portfolio using data analytics and multi-channel marketing to increase awareness and enhance customer engagement.
UCG Associates has the experience, capability and personnel necessary to operate the Chicago Park District’s concession program. Therefore, it is in the best interest of the Chicago Park District to recommend award for concession program management services contract to UCG Associates.
VI. General Conditions
1) Conflicts: The Agreement shall not be legally binding on the Chicago Park District if entered into in violation of the provisions of 50 ILCS 105, the Public Officer Prohibited Activities Act.
2) Ethics: The Chicago Park District’s Ethics Code, Chapter III of the Code of the Chicago Park District, shall be incorporated into and made part of the agreement.
3) Contingent Liability: Any agreement lawfully entered into for a period of more than one year shall be executory only for the amounts for which the Park District may become
liable in succeeding fiscal years pursuant to Section 17(i) of the Chicago Park District Act, 70 ILCS 1505/17(i). All agreements authorized herein shall contain a clause that
any expenditure beyond the current fiscal year is subject to appropriation in the subsequent fiscal year budget.
4) Economic Disclosure Statement (“EDS”): Contractor has submitted a full and complete EDS.
Respectfully Submitted:
Dana Zilinski Patrick Levar, Jr.
Director of Revenue Chief Operating Officer
Approved as to the Purchasing Process:
Mark Reed
Director of Purchasing
Approved Within the Appropriation
Steve Lux
Chief Financial Officer
Approved as to Legal Form:
Timothy King
General Counsel
Approved:
Michael P. Kelly
General Superintendent and CEO