The City awards franchises and concessions in a manner similar to the procurement process (e.g., by using RFP’s or competitive sealed bids), while revocable consents are made through a permitting and petitioning process initiated by the requesting entity.  MOCS oversees and certifies agency compliance with the applicable laws and regulations for franchises, concessions, and revocable consents.  Franchises and concessions are also subject to the approval of the Franchise and Concession Review Committee (FCRC) in certain circumstances.

• Franchises are grants of the right to occupy or to use the City’s inalienable property, such as streets or parks, for a public service, e.g.,   transportation or telecommunications.
• Concessions are grants for the private use of city-owned property such as for food sales or recreational activity, with the City’s compensation typically tied to the concessionaire’s revenue.  Concessions are also subject to FCRC’s rules.

The FCRC is comprised of six members: two represent the Mayor, one represents the Law Department, one represents the Office of Management and Budget (OMB), one represents the City Comptroller, and representatives of the five Borough Presidents share one vote, which is allocated according to the location of the franchise or concession at issue. 

To award a franchise, the FCRC must conduct a hearing and approve the franchise with at least five votes.  Concessions, depending on their award method, may or may not require FCRC approval.  Those procured by competitive sealed bid never require FCRC approval. 

FCRC Hearings and Meetings

• November 9, 2009 FCRC Public Hearing
• November 10, 2009 FCRC Public Hearing
• November 10, 2009 FCRC Public Meeting

Public hearings are held for all “significant” concessions, i.e., those awarded via a method other than competitive sealed bid that either have a term of 10 years or more or will result in a projected annual income to the City of more than $100,000.  Concessions awarded via negotiated concession require a preliminary approval by the City’s Chief Procurement Office to utilize the negotiated concession method and one subsequent FCRC approval of the concession agreement, with the support of at least four votes. Concessions awarded via different procedures, i.e., sole source or non-for-profit, require two FCRC approvals, each with the support of at least four votes: first, a preliminary approval allowing the agency to enter into negotiations, and then, once the concession agreement is finalized, a vote to approve its grant.