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 Fourth Amendment to the concession contract with Pop Four Love Field JV, LLC for food and beverage concessions services at Dallas Love Field Airport to (1) extend the term of the contract by an additional seven-years; and (2) increase the current street plus 10 percent pricing to 15 percent for the sit-down restaurants covered by the contract (Cru Wine and Bruegger’s Bagels) - Estimated Revenue: Aviation Fund $1,577,025.00
Body
BACKGROUND
On March 7, 2021, the City Council authorized a concession contract with Pop Four Love Field JV, LLC for food and beverage concession services for the construction, management, and operation of two food and beverage concessions, Cru Wine (C2261) and Bruegger’s Bagels (L1045), by Resolution No. 12-0706. The contract’s primary term for Pop Four Love Field JV, LLC began November 1, 2014.
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, Pop Four Love Field JV, LLC projects to spend $1,800,000.00 on capital improvements and rebranding of one unit and a refresh of the other unit. The Department of Aviation seeks City Council approval to amend the contract with Pop Four Love Field JV, LLC to extend the term by an additional seven-years and increase the current street plus 10 percent pricing to 15 percent for Cru Wine and Bruegger’s Bagels both a sit-down restaurant.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
on March 7, 2012, the City Council authorized the City Manager to enter into a Food & Beverage Concession Contract with Pop Four Love Field JV, LLC for the operation of a Cru Wine and Bruegger’s Bagels at the Airport (“Contract”) by Resolution No.12-0706; and
On August 12, 2015, the City Council authorized the First Amendment to the contract to address certain street pricing and rate of pay issues by Resolution No.15-1335; and
On June 26, 2019, the City Council authorized the Second Amendment to the contract wherein the City exercised both of the one-year Renewal Terms per the provisions of the Contract by Resolution No. 19-0978; and
On October 13, 2021, the City Council authorized the Third Amendment to the concession contract wherein upon the expiration of the Renewal Term, the term of the Contract shall be extended for two years and shall expire, unless terminated sooner pursuant to the Contract in October 2027, by Resolution No. 21-1649; and
FISCAL INFORMATION
Estimated Revenue: Aviation Fund $1,577,025.00
OWNER
Pop Four Love Field JV, LLC
Luis Ibarguengoytia President/Chief Executive Officer