STRATEGIC PRIORITY: Mobility Solutions, Infrastructure, and Sustainability
AGENDA DATE: October 13, 2021
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Aviation
EXECUTIVE: Majed Al-Ghafry
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SUBJECT
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Authorize a Second Amendment to the concessionaire contract with Host International, Inc., a Dallas Love Field food and beverage concession, approved as to form by the City Attorney, in order to (1) exercise both one year renewal terms; and (2) add two extension years to the contract - Estimated Revenue: Aviation Fund $1,657,000.00
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BACKGROUND
On March 7, 2015, City Council authorized a concession contract with Host International, Inc., a food and beverage concession contract for the construction, management, and operation of Cool River (C2125), La Madeleine (C2546), Paciugo/Auntie Anne’s (C2321), Starbucks East (C2653), Starbucks West (C2452), and Chick-Fil-A (C2063) by Resolution No. 12-0706. The Contract’s Primary Term commenced November 1, 2014 for all the units, with a Contract Primary Term expiration of October 31, 2021. In addition, based on the concession’s excellent operation throughout the Primary Term, but especially during the COVID-19 pandemic when airline traffic was significantly reduced, with drastic staffing reductions and sales lost, concessionaire continued operations to service passengers and airport employees in a very trying climate, the Department of Aviation seeks (1) to exercise both one year renewal terms; and (2) add two extension years to the contract, allowing concessionaire to recover and re-establish a profitable position at Dallas Love Field.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 7, 2012, City Council authorized the food and beverage contract with Host International, Inc. by Resolution No. 12-0706.
On August 12, 2015, City Council authorized an amendment to allow street plus 10 percent pricing, $10.37 per hour minimum wage rate and waived the shared costs provision for food court cleaning, third party inspection and deliveries and trash removal by Resolution No. 15-1335.
FISCAL INFORMATION
Estimated Revenue: Aviation Fund $1,657,000.00
OWNER
Host International, Inc.
Anthony Alessi, Vice President, Business Development