‘Theodore H. Strauss une 21, 2010 Pauline Medrano Deputy Mayor Pro Tem Dallas ity Council Distt 2 Dallas City Hal 1500 Marilla t,, Room SEN Dallas, Texas 75201 Dear Ms. Medrano: the Cty f Dallas and t hopethat you will do so on june 23, 7 Theodor ul saussED OAKLEY 5011 LEWIS STREET, DALLAS, TEXAS 75207 Dear Council Members, T have refrained from contacting you in the past unless I felt that the matter was in the best interests of the city. felt very strongly about the convention center hotel, the Bishop Davis Zoning, the Smoking Ordinance, and the Trinity. | am writing you today because I feel strongly about the contract issue at Love Field and I can’t attend tomorrow's meeting as | am out of the country. | fully support staff's recommendation to Council and urge you to vote YES in favor of extending and renewing the existing concession contracts at Love Field. 1 know how much time you have spent on this issue. 1 understand that, initially, the staff was in favor of putting all the concessions out to bid. | understand that the transportation committee then directed the staff and consultant to bring back a proposal to encourage the existing concessions to remain in the old terminal until the built, then allow the existing naires to move into the new terminal with about new terminal conces the same square footage. The staff, consultant, and the concessionaires worked very hard to accomplish this in thebest way possible. I know that your staff and consultant would not recommend something that is not in the best interest of the city and the traveling pul I find it very suspect that, after all your work, as this contract Is before you to vote, the mayor puts it back in to yet another ad hoc committee. In almost every case where a member of the council began by questioning the staff's decision to the extent that this issue has been, there was some other hidden agenda. This issue seems to be portrayed as just about ethics and an open government issue. | have watched as the vendors have been portrayed as sub standard. They have been portrayed as if they have some unethical connection to council or staff when in fact they have bid on city contracts in the past. They have been successful in some efforts and unsuccessful in others. None of these vendors or their representatives ever contacted me for anything during my tenure on the council. J remind you that until the 14-1 became the form of council, one vendor had all the concessions at DFW and Love Field for decades. Once the monopoly was broken up, qualified minority vendors finally had an even playing field. You are sending a very bad message to vendors across the board when you put qualified people like these through all these negotiations then change the rules at the end at the Council level.Everyone wants a fair process and to obtain a good deal for the city. Remember a lease space at an airport is not the same as a space in a strip center or the Galleria. The market and customer base is very different. If there is a problem with the process, then fix that. That is in your purview. If you choose to put all the space out to bid, then who will fill the space after the contracts expire next June? Will you have to subsidize the existing vendors to provide in the old terminal? This contract provides the nin to service: services necessary and allows a seamless tran: the new terminal without additional expense to the City or the Aviation Department.0. “Toe Love Feld Contracts: Gatting the Bast Deal or ‘To national recocrized aot consultant hire by th Git of Dal recommends a blended dang process proving the best value othe iy. ‘The Cy of Dales pfessonl sta als commended a blended bdking process a proving {ho bet value fo the ey. That vale neues having proven vender fo werk tough he ‘dsrupion ofa tives yer constcten process. ase vendo's have aso domoncvated ‘ommtment ana sng power by staying open to provide service fo avers rough the Feduced vate folowing 11 and dung te recent economic downturn. Despite a recessionary ‘Sate thy have always met to Foal conmimments ote oy “This was an open as wansparnt gress. The Cy Counc or a Cty Counc! commie receive mare than 12 brings on Lave Fld aver the poe tree year. The Cy Counc or 2 Cy Counes commie rested brings on ts propesed aor cantacis our Unes aver he pst 13 mont. Comell members consitentyvoicas oe suppor ot the cy sta and Eansutan’s work Te Counels commit of jurceton, the Transperaon and Environmental Caries, voted 1.0 in tv of reconmending for pprovs te ey sae proposal 0 the fl Counat ‘The ey eta recomnandaton dose nclude the ute ofan open bi process forthe conzace st Love Fas. Forine wal enacts, 7 percent of real spaces, which represents 5t percent ot the reas square ezagein the new Love Field Terminal be awarded through an open process. ity not get a total apon bid process? The consulant hired by be Cy of Daas Insets concuons unique io Love Fat make te blended tid procase te est value tthe hy. ‘Ta extended consets are tid othe open bid contacts. The staff propose spacial dereses the soonero ofa proving 2 “eter da forthe ey by alowing tho iy to cancel he egolates contracts concessions tno mast beter ema feed for tha new S500, The Sip intrest sre wa protects “The Love Field constuction makes his stvation unique. The current proposal takes into account Ihe potental dorian of services at Love Fed curent vender coracts ae not extended “Tees nothing unususlabout aepors extending te centats of vendors. Te cy laff ‘ecommended the erent food an oi conrace bo extendee bes ont sigfeant success Snd investment nat be curent vendors have maenteirLove id operations. DFW Apart 8nd oer arpa across the county regulary extend the cones of success aor vendors, “Tres noting unusual about aeons negotiating centact versus puting hem oto Bid. has boenroplry ce nthe pat at DFW Airport. was most ecelly dana at I when ‘here as negotiate a contact wit Pappadeain’s pula restaurant a terminal at FW. ‘Tare noting unusual about he lng ofthe contacts. The calor 12 year tems. The Inausy average i 1D years. Two food wenues a DFW Aiport have tors foto 20 yrs in lang. The Fappadeaux's contac t DFW Aportis for ten years and includes 14,000 square feato! spot, amos! as much asthe ere proposed real space m he new Love Fl termi "he lena ofa contacts dotemined by he fvestent required bythe vendor versus ngth ot tie needed to recover that investment Long tam corrects ae nt unusual or apr venrs. Both vendors have boon sci business partners withthe Gy of Dai. They have mae SUubsiantalmvosimert in ta operatons at Lave Fic. Beth have mercasod sas and Yevanue tothe sepa Suing ew erent terms, ‘The Dallas City Cou has consistently enenuraged loca! mincty business partipation i the ‘andor contacts st ove Fld The read vendor has bse nthe Sept canesssions busses Tormore man 29 years ‘The inegty of he Gy contracting process eat stake, Ae all contacts noo be open be? ‘na Gy Counel seu tink woe abou the pracadets tis seting this debat ae tho ‘gata mereage tie sending fo Businesses who may want o do buses wh he SyDALLAS LOVE FIELD CONCESSIONS FREQUENTLY ASKED QUESTIONS Q. Why are the concessions contracts being awarded as “no bid”? ‘These contracts are not “no bid” contracts. ‘They are simply extensions and renewals ofexisting contracts Long term contract extensions are commonly awarded by City all (or example, the Love Field parking contract and the mulit-year Gulf Stream contract extension). Tivo other examples are the 50-year Union Staion contract extension and the 4C-year State Fair Association contract . Are the eurrent contracts the “best” deal for the City of Dallas? Yes, they are. These contracts have been studied by city staff and consultants for lover three years! Comparable airports similar in size of Dallas Love Field were studied along with industry standards. The contracts have clauses that prteet the city from any problems with performance, increase its revenue, and ean result in immediate termination if there is any default. (Q. Then what isthe problem? ‘The problem is thatthe mayor has decided to challenge these contracts after over three years of work by the City staT and the City Counel's transportation committee by creating a perception that these contracts lack transparency and faimess. This is not the ease. ‘Through misstatement, omission, and manipulation of facts, the mayor has created a perception that what is being considered by City Council isnot inthe best interest ofthe city. That is absolutely wrong. The Transportation and Environmental Committee, made up of City Council members, voted, unanimously, 10-0, in February to approve the staff's recommendation and go forward, Three of is members, including the Chair and Vice Chair of the Commitee ~ Linda Koop and Shetfie Kadane, have changed their positions since the Mayor voiced his opposition Q. Where does the money go from concessions if not to the City’s general fund? ‘The money received by airport concessions never goes tothe city's general fund to help pay salaries or crit police offices or fix stee lights, The money is restricted and goes to the Love Field aviation fund t help maintain the airport, The more money the concessionaires make, the more money that goes into the aviation fund. Q. Why is the City Council split long racial lines on this Issue? ‘The minority City Council members believe strongly in supporting the process that, City stafhas been through over the past three years, culminating inthe Council's‘Transportation Committee recommending 10-0 that these contracts be approved by the entire Dallas Ci:y Council. No favoritism is being considered, contrary to what hhas been portrayed inthe Dallas Morning News. In addition, the current concessionaires are successful, minority-owned businesses that have played by the rules. Q. What is the Ron Natinsky plan being discussed in the media as a ‘compromise © this issue? ‘What city council member Natinsky has offered should not be considered. What he Aid privately in attempting to broker a “deal” has now become public, A city council ‘member cannot negotiate contracts or their terms. Only city staff and its attorneys: ‘ean. Additionally, Ron Natinsky voted in favor to approve the proposed contract extension as current offered and applauded the city staff for its efforts atthe committee meeting in February. Why he bas suddenly changed his mind is ‘questionable, Q. Who are the current concessionaires at Love Field? ‘The food and beverage concessionaire is Dallas Love Field Joint Venture, Lid, an award-winning 100% minority owned business and the retail concessionaire is ‘Hudson Dallas Joint Venture Retail, which is 40% minority owned. Both companies hhave helped Love Field receive outstanding customer service awards Q. Why is the Mayor so opposed to these contracts? He says it is because of his wanting an “open” and “wansparent” City Hall, Questions are raised because ofhis support of no bid contacts at DFW Airport, no bid for the privatization of Dallas Zoo and his conflict of interest with hs political consultant representing a competitor of the current concessionaire's concession business, His behavior is also inthe form ofa strong mayor form of government, something the city voted agains a few years ago,