Date: April 15, 2010

To: Recreation and Park Commission

From: Nick Kinsey
Through: Nicole Avril
Re: Permits for Various Pushcart Operators in City Parks

Agenda Item Wording:

Discussion and possible action to approve permits with Annie's Hot Dogs, La Cocina,
Let's Be Frank and Onigilly for the operation of push cart concessions in various park
locations.

Background:
The Recreation and Park Commission approved the publication and distribution of a
Request for Proposals (RFP) package on July 16, 2009. The RFP solicited respondents to
operate pushcarts in City Parks. The RFP asked respondents to bid on specific park
locations and allowed respondents to propose to operate in parks other than those where
pushcarts are currently located (Golden Gate Park and Civic Center).

The Department undertook this endeavor in an effort to activate park spaces, provide
additional amenities to park users and to generate additional revenue to the Department.
The RFP prioritized menus featuring healthy and sustainably grown foods as well as
those featuring distinct culinary offerings.

On February 18, 2010, Department staff presented the selection panels recommendations
to permit Annie’s Hot Dogs, La Cocina, Let’s Be Frank and Onigilly to operate in City
Parks. Department staff have since negotiated permits with each of the selected
respondents (Exhibits A-D). The Department is currently accepting proposals on a
rolling basis and intends to return to future Commission meetings with additional selected
respondents.

Permit Terms:
With the exception of the Onigilly permit, each of the permits are for a period of five
years. As the Department is receiving less percentage rent from the Onigilly permit than
the other permittees, Department staff have negotiated a one year permit and both parties
have agreed to revisit the financial terms after the completion of the initial permit.
Department staff agreed to a lower percentage rent because of the extensive amount of
 commercial kitchen rental time needed for their menu offerings and the fact that as they
only had one location, their commissary costs would be borne entirely by the one
location.

The permits require Department approval of the permittees equipment, menu and prices,
signage and hours of operations. Additionally, the permittees would be required to clean
and maintain the park space surrounding their concession.

Due to the unique logistical and operating conditions of each permittee, the financial
terms negotiated vary between each of the permits. In evaluating the financial terms of
each permit, Department staff considered the number of pushcart locations a permittee
has, their ability to distribute the cost of a Health Department required commissary across
multiple pushcart locations and the amount of offsite prep work and labor required. The
following chart lists the financial terms for each permittee.

Minimum Annual
Permittee Location Brief Description of Menu Guarantee Percentage Rent
Traditional hot dog stand
offerings incorporating organic
Civic Center Plaza, Behind foods in Golden Gate Park. At
the Bandshell at the Music Civic Center menu also
Concourse in Golden Gate includes sandwiches, salads
Annie's Hot Dogs Park and Spreckles Lake and fresh brewed coffee. 65,000 25%
Rotating menu, primarily
focusing on Latin American
inspired cuisine prepared by
participants in La Cocina's
Justin Hermann Plaza and entrepreneur development
La Cocina Mission Dolores Park programs. $24,000 10%
If gross sales for a
particular month are
under $20,000 the
percentage rent shall
be 10%, if gross
sales for a particular
month are over
$20,000 the
percentage rent shall
Let's Be Frank Justin Hermann Plaza Grilled organic hot dogs $12,000 be 15%.
If gross sales for a
particular month are
under $20,000 the
percentage rent shall
be 7%, if gross sales
for a particular
month are between
$20,000 and
$49,999 the
percentage rent shall
be 10%. If gross
sales for a particular
Traditional Japanese rice wrap month are over
similar to sushi but prepared $50,000, the
with brown rice and served percentage rent shall
Onigilly Justin Hermann Plaza without fish. $12,000 be 12.5%
Next Steps:
Upon approval by the Commission of the attached permits, Department staff will work
with the permittees to quickly begin operating each location. Department staff are in the
final steps of negotiating a permit with Blue Bottle Coffee for the operation of a
concession in Golden Gate Park and at Mission Dolores Park and anticipates returning to
the Commission with said permit in May. Additionally, Department staff will be
reconvening the selection panel shortly in order to review recent submissions. Recent
submissions include a gourmet coffee cart, a Belgian waffle truck, and a roaming food
cart market that would feature food trucks selling various ethnic foods and locate in a
different park each day of the week.

Financial Impact:
If permits are approved with all of the selected respondents, cumulatively they would
result in a revenue increase of no less than $113,000 to the Department annually.

Supported By:
Selection Committee (unanimously)
Department management and staff

Opposed By:
None known

Attachments:
Exhibit A–Annie’s Hot Dog Permit
Exhibit B-La Cocina Permit
Exhibit C-Let’s Be Frank
Exhibit D-Onigilly