ORDINANCE approving and authorizing Revenue Agreement between City of Houston and LATRELLE’S GALLEY, LP for Food and Beverage Concession at William P. Hobby Airport (HOU) for the Houston Airport System - 10 Years - Revenue

Request for Proposals received March 10, 2022, for P03-T34419 - Approve an ordinance awarding a revenue contract to LaTrelle’s Galley, LP to provide and operate a food and beverage concession at William P. Hobby Airport (HOU) for the Houston Airport System.

Specific Explanation:
The Director of the Houston Airport System and the Chief Procurement Officer recommend that City Council approve an ordinance awarding a ten (10) year revenue contract to LaTrelle’s Galley, LP to provide and operate a food and beverage concession at William P. Hobby Airport (HOU) for the Houston Airport System.

The Request for Proposals (RFP) was advertised in accordance with the requirements of the State of Texas bid laws. As a result, proposals were received from seven (7) firms: Air Star-LTS Marquis HOU, LLC, Areas HOU JV, LLC, HMS Host International, Inc., LaTrelle’s Galley, LP, OTG Management HTX, LLC, Paradies Lagardere @ HOU 2022 (F&B), LLC, and SSP America. The Evaluation Committee (EC) consisted of City employees from the Administration and Regulatory Affairs and General Services Departments, and the Houston Airport System. The evaluation was based on the following criteria:

1. Customer Service/Management and Operations Plan
2. Local Participation
3. Concept Development and Menu
4. Design, Material and Sustainability
5. Background and Experience
6. Transition Plan
7. Compensation to the City

The EC’s findings, based on the evaluation of proposals’ responses to the Technical Competencies and the Compensation to the City, resulted in the following:

LaTrelle’s Galley, LP was deemed the most qualified as it received the highest overall score based on the evaluation criteria. Therefore, the EC is recommending LaTrelle’s Galley, LP for Package Two. The RFP comprised Package One and Package Two. LaTrelle’s chose Package Two as its preferred package. Package One was cancelled and is being re-procured.

The Term of the Agreement shall commence on the effective date, and unless sooner terminated in accordance with Article XIV of the agreement, shall expire in ten (10) years.

The Concessionaire will deliver to the City on or before the Effective Date a surety bond in an amount equal to $3,205,950 conditioned on the faithful performance of all terms, conditions, and covenants of the Agreement

The following Percentage Fee Rate by category of product sold at the Facilities shall be applied to Gross Sales per month beginning on the Effective Date:

ACDBE Participation:
The RFP was advertised with a 30% goal for ACDBE participation. LaTrelle’s Galley, LP submitted a participation plan of 97.25% and has designated the below-named companies as its certified ACDBE prime concessionaire and subcontractors.

Pay or Play:

The proposed contract requires compliance with the City’s Pay or Play ordinance regarding health benefits for employees of City contractors. In this case, the contractor provides health benefits to eligible employees in compliance with City policy.

Hire Houston First:
The proposed contract requires compliance with the City’s Hire Houston First (HHF) ordinance that promotes opportunity for Houston businesses and supports job creation. In this case LaTrelle’s Galley, LP does not meet the requirements for HHF designation; no HHF firms were within three percent.

Fiscal Note:
Revenue for this item is included in the FY2023 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.

Estimated Revenue