TITLE
Consider a memorandum/resolution approving an airport concession agreement for Killeen Fort Hood Regional Airport.
SUMMARY
DATE: January 8, 2019
TO: Ronald L. Olson, City Manager
FROM: Matthew Van Valkenburgh A.A.E., Executive Director of Aviation
SUBJECT: APPROVAL OF CONCESSION AGREEMENT FOR KILLEEN FORT HOOD REGIONAL AIRPORT
BACKGROUND AND FINDINGS:
Shortly following opening of the Killeen Fort Hood Regional Airport in August of 2004, an agreement was entered into with Subway Corp. as a food service vendor to passengers, customers, staff, and visitors, and Jester’s Lounge for serving of alcoholic beverages and light snack foods. Subsequently, as Jester’s departed the market in 2010, in that same year agreements were made to provide a coffee and bar concession with Green Beans Coffee, Inc. In September 2016, Subway Corp. made a corporate decision to discontinue their services at the Airport; Green Beans continued operation at the Airport until September 2017. In lieu of these concessions, the Airport requested the vending provider, Automatic Chef, provide additional services in the concession area until such time a vendor was selected.
Realizing the need for a concessionaire at the Airport, staff began drafting a concession request for proposal in August 2017; RFP 18-05 “Food, Drink and Bar Service Killeen Fort Hood Regional Airport” was released in November 2017. The document stated the Airport’s desire for a tenant within the terminal building that would sell on-site prepared hot and cold meals, pastries, other snacks, coffee, beer, wine, liquor, soft drinks, and other similar items. Sale of related non-food products would be approved if offered in conjunction with the desired drink and food items. The successful proposer was to be granted exclusive rights to the sale of alcoholic beverages within the terminal. Due to the size of the Airport and the number of enplanements, it was envisioned only one major provider would be selected to...
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