City: Request not meant to shut out ‘little man’
SANTA MONICA BEACH — The owner of four mom-and-pop beach concession stands fears his operation may soon be swept away by big business, while City Hall contends it will avoid legal sand traps by opening up the bidding process.
Last month City Hall issued a request for proposals that offers bidders a chance to replace Perry’s Beach Cafe and Rentals, four concession stands that have been a Santa Monica trademark for more than 25 years.
Perry’s owner, Richard Chacker, says City Hall’s request for a proposal is an invitation for large food-service corporations, such as McDonalds, to take over the sites he leases from Santa Monica. Meanwhile, City Hall says it’s following basic legal procedure and that the request is as broad as possible in order to allow the city to choose the best fit.
Perry’s locations offers 142 kinds of food on its menu served in an outdoor, casual dining atmosphere. Visitors are also able to rent bikes, boogie boards, skates, umbrellas, or take lessons for various beach activities. His concession stands play classical music in the morning and pop tunes in the afternoon.
Over the years, Chacker says he and his staff have worked to broaden their customer base into a mix of which the community can be proud.
With visitors coming to his stands on recommendations from around the world, Chacker says he thought he was successful. However, he believes the city’s request to open up the bidding process is more than standard procedure and is aimed to undermine the “little man.”
“I’ve been involved in this process with the city five times, and I’ve never seen anything like this,” Chacker said, referring to the 70-page request for proposal the city has sent out into the business community seeking bidders.
He insists the “devil is in the details.” He cites that not only does City Hall’s request ask that the business community take over the four Perry’s concession stands, it also prefers that the candidates be able to provide concession service at the civic auditorium and the beach cafe at 1100 Pacific Coast Highway. He says the total minimal capital investment would be $783,000.
“It is highly unlikely that a small business operator will have the financial or human resources to provide that,” Chacker said.
However, representatives from City Hall said the aim in the proposal request wasn’t to shut the “little man” out, but to provide as much competition as possible, as required by law, so the city can choose the best candidate.
“It could be a big or small operator,” Councilman Richard Bloom said. “Nothing is determined. I don’t think the city’s request is intended to criticize Perry’s operation.
“I would think the incumbent would have as good a chance as any, because he has a read on Santa Monica’s needs.”
Elaine Polachek, open space manager for City Hall, said the request for proposals is often stressful for business owners, who have a lot riding on their success. The process is meant to abide by legal standards.
Polachek said last time City Hall went out to bid in the late 1990s, Chacker submitted the only proposal and he was awarded the agreement. This time around, City Hall hired a food services consultant to assist in the preparation of the proposal to help expand the process.
But it’s not meant to exclude the incumbent, either, she says.
“We’re obviously looking for the best rental offer along with an operation that provides a high quality of food, rentals and service to the public,” Polachek said. “Richard knows the market and business better than anyone having operated the concessions for decades.”
City Hall is expected to announce who is awarded the five-year contract next summer.
Originally published in the Santa Monica Daily Press print edition on September 9, 2005. Read the original PDF.