STRATEGIC PRIORITY: Transportation & Infrastructure
AGENDA DATE: May 8, 2024
COUNCIL DISTRICT(S): 6
DEPARTMENT: Department of Aviation
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
Title
Authorize a Second Amendment to the concession contract with CBC SSP America DAL, LLC for food and beverage concessions services at Dallas Love field Airport to (1) extend the term of the contract for an additional seven-years; and (2) increase the current street plus 10 percent pricing to 15 percent for the sit-down restaurant covered by the contract (First Quarter Bar & Grill) - Estimated Revenue: Aviation Fund $1,854,000.00
Body
BACKGROUND
On October 24, 2018, the City Council authorized a concession contract with CBC SSP America DAL, LLC, formerly known as Creative Bar Concepts, LLC for the construction, management, and operation of a food and beverage concession, First Quarter Bar & Grill (C2216), by Resolution No. 18-1482. The contract’s primary term began on February 1, 2020.
On December 8, 2021, Administrative Action No. 21-5889 authorized the City Manager to consent to the assignment and assumption the contract from Creative Bar Concepts, LLC, as Assignor, to CBC SSP America DAL, LLC as Assignee, effective upon date of execution.
On December 8, 2021, the City Council authorized the First Amendment to the concession contract to exercise both one-year renewal terms and to add two additional extension years to the contract by Resolution No. 21-1941.
Based on the concessionaire’s excellent operation through the primary term but especially during the COVID-19 pandemic when airline traffic was significantly reduced, with drastic staffing reductions and sales lost, the concessionaire continued operations to service the passengers and airport employees in a very trying climate. Post-COVID recovery progresses but at a significantly higher cost. Wages, hiring costs, merchandise and food costs have all increased, along with the delivery costs and all aspects of the operations at the airport have increased the costs of those operations. As enplanements continue to rise, the food and beverage outlet’s must be improved. To this end, CBC SSP America DAL, LLC projects to improve and refresh both units.
The Department of Aviation seeks City Council approval to amend the contract with CBC SSP America DAL, LLC to extend the term by an additional seven-years and increase the current street plus 10 percent pricing to 15 percent for First Quarter Bar & Grill (C2216) of which is a sit-down restaurant.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On October 24, 2018, the City Council authorized a concessions contract, with two-twelve-month renewal options, for food and beverage concession services at Dallas Love Field with Creative Bar Concepts, LLC, by Resolution 18-1482.
On December 8, 2021, the City Council authorized the First Amendment to the contract to exercise both one-year renewal terms and to add two additional extension years to the contract by Resolution No. 21-1941.
FISCAL INFORMATION
Estimated Revenue: Aviation Fund $1,854,000.00
OWNER
CBC SSP America DAL, LLC
Charles Bush, President/Chief Executive Officer