►
Description
he Committee on Transportation and Public Utilities of the Council of the City of Philadelphia held a Public Hearing on Monday, June 7, 2021, at 2:00 PM, in a remote manner using Microsoft® Teams to hear testimony on the following item:
210505 An Ordinance authorizing the Procurement Commissioner and the Chief Executive Officer of Philadelphia International Airport on behalf of the City of Philadelphia, to enter into an amendment to a concession agreement for the management of the food, beverage, retail and passenger services program at Philadelphia International Airport, and an amendment to the ancillary Additional Services Agreement, all under certain terms and conditions.
C
C
We
are
using
microsoft
teams
to
make
these
remote
hearings
possible
instructions
for
how
the
public
may
view
and
offer
public
testimony
at
public
hearings
of
council
committees
are
included
in
the
public
hearing,
notices
that
are
published
in
the
daily
news
inquiry
and
legal
intelligence.
Sir,
prior
to
the
hearings,
and
can
also
be
found
on
phl
counsel,
dot
com
will
the
clerk
please
call
the
role
to
take
attendance.
C
B
D
C
B
Bill
number:
two:
zero:
five:
zero;
five
authorizing
the
procurement
commissioner
and
the
chief
executive
officer
of
philadelphia
international
airport,
on
behalf
of
the
city
of
philadelphia,
to
enter
into
an
amendment
to
the
concession
agreement
for
the
management
of
the
food
beverage,
retail
and
passenger
services
program
at
philadelphia,
international
airport
and
an
amendment
to
ancillary
additional
services
agreement.
All
under
certain
terms
and
conditions.
C
By
continuing
to
bring
in
the
meeting,
you
are
consenting
to
being
recorded
additionally
prior
to
recognizing
members
for
the
questions
or
comments
they
have
for
witnesses.
I
will
note
for
the
record
at
this
time
that
we
will
use
the
chat
feature
available
in
microsoft
teams
to
allow
members
to
signify
that
they
wish
to
be
recognized
in
order
to
comply
with
the
sunshine
neck.
The
chat
feature
must
only
be
used
for
this
purpose
for
the
clerk.
Please
call
the
panel
for
bill
number
210505.
C
E
E
Marketplace
provides
all
of
the
support
services
necessary
for
concessionaires
to
operate,
including
delivery
and
distribution
of
all
products,
custodial
services,
marketing
piecing
providing
utilities,
common
area
maintenance
and
the
like.
In
return.
The
agreement
was
approved
by
city
council
in
2014,
provides
compensation
levels
at
9.75
percent
of
gross
rents
collected,
most
of
which
covers
the
operating
cost,
to
administer
the
program.
E
To
put
that,
in
perspective
nine
point,
seven
five
percent
of
the
growth
collected
in
calendar
year,
2019
totaled
4.38
million-
that
amount
was
only
1.65
million
dollars
in
calendar
year
2020
the
calendar
year.
2020
compensation
was
not
enough
to
fund
the
program's
fixed
operating
costs
when
the
pandemic
struck
and
passenger
levels
dropped
by
more
than
90
percent
concession
locations
at
phl,
closed
and
sales
dropped
by
90
percent.
E
E
The
notable
changes
include
a
revised
fee
structure,
which
would
be
the
greater
of
11
of
total
gross
concession
revenues
or
a
guaranteed
annual
payment
of
3.3
million
dollars.
This
revised
fee
structure
will
allow
marketplace
to
operate
a
modified
concession
program
at
break
even
levels
during
the
anticipated
postcovid
recovery
period.
E
C
A
A
A
A
We
currently
manage
170
food
and
shop
locations
at
the
airport
and
in
2019
over
a
hundred
of
those
locations
where
minority
women
owned
businesses,
the
covet
19,
impacts
of
of
commerce
and
businesses.
At
the
airport
is
well
known,
and
certainly
detailed
in
ms
cameron's
testimony,
our
operations
have
gone
from
as
low
as
12
stores
open.
Today,
it's
12
stores
open
to
today's
levels
of
operating
approximately
fifty
percent
capacity,
but
that
only
tells
part
of
the
story
for
the
businesses
at
the
airport,
especially
the
smaller
minority
businesses.
A
The
partnership
at
phl
and
the
many
hours
of
responding
and
planning
with
all
of
the
levels
of
the
airport
personnel
has
been
remarkable.
Importantly
marketplace.
Phl
also
maintained
our
commitment
to
diverse
businesses
because
I'm
a
small
business
owner.
I
personally
understand
the
impact
that
the
pandemic
would
have
had
on
small
businesses.
A
A
An
amendment
to
our
agreement
will
allow
marketplace
phl
to
continue
to
support
and
grow.
The
diverse
business
base
enhance
the
passenger
experience
and
to
continue
the
long
tradition
as
the
airport
being
the
economic
driver
in
the
region,
my
firm
marketplace
phl
and
our
over
170
merchants
and
our
2000
employees.
C
Thank
you.
Thank
you
very
much
and
thank
you
for
your
presentation
before
I
open
up
to
my
colleagues
for
a
couple
questions.
Clarence.
Can
you
give
me
specific
numbers
on
the
number
of
minority
businesses
that
are
at
philadelphia
international
airport
under
the
agreement
with
marketplace
the
sort
of
specific
number,
and
then
also?
E
F
F
Thirty
million
four
hundred
and
eighty
one
thousand
six
hundred
and
ninety
three
program
dollars
and
thirteen
million
nine
hundred
one
four.
Sixteen
going
to
acdbes
the
location
breakouts
by
ethnicity
are
36
for
black
americans,
two
for
hispanic
americans,
none
for
native
american
26
for
asian,
indian,
american
and
asian
pacific
american.
We
have
13
locations.
C
D
C
A
D
D
I
see
that
now
the
leisure
travel
has
been
going
and
you
know
also
conventions
will
hopefully
be
coming
on
if
we
get
into
the
last
quarter
or
maybe
maybe
not
last
quarter
more
next
quarter,
first
quarter
second
quarter
of
next
year.
But
how
do
you
see
that
growth
and
how
they're
helping
you,
mr
legion,
and
some
of
the
minority
businesses
like
yourself
and
others
at
the
airport,
as
well
as
just
growth
of
the
airport
as
well,
especially
for
our
employees,
that
work
at
those
locations
also
work
for
the
airport.
E
So
clarence,
let
me
take
the
first
part
of
that.
Okay
and
then
you
can
take
this.
The
second
thank
you,
councilmember
green
for
that
question
and
and
you're
exactly
right.
That's
one
of
the
things
that
we
worry
about.
The
most
is
is:
when
is
business
travel
going
to
come
back?
We
things,
look
pretty
strong
this
summer
with
leisure
travel,
as
you
said,
but
that
once
everybody
takes
their
vacations
and
school
goes
back
to
normal
in
september.
E
We're
very
concerned
that
if
business
travel
hasn't
returned,
you
know
we'll
have
this
huge
peak
in
the
summer
and
then
just
this,
this
great
big
valley
in
september
and
through
the
winter
we
are
doing
passenger,
intercept
surveys
right
now,
with
our
airport
provided
wi-fi
system,
and
essentially,
if
you
log
on
you
might
get
a
couple
of
questions.
What
we
are
asking
is
how
many
people
are
traveling
for
leisure
versus
business
and
what
we're
finding
is
that
you
know
say
four
or
five
months
ago,
the
business
travel
percentage
was
only
about
10
percent
of
total.
E
A
Well
again,
to
echo
shelly's
point:
you
know
a
lot
of
the
philadelphia
business
centered
around
business
travelers.
You
know-
and
I
think
this
testimony
today
is
sort
of
a
clear
example
of
how
everything's
changed
and
how
people
are
doing
business.
So
you
know,
for
us:
philadelphia
has
always
been
a
tremendous
airport.
A
A
The
business
traveler
to
shelly's
point
the
leisure
travel
business
is
great
because
I
think
we're
all
we're
sort
of
in
a
cocoon
if
you
will
and
just
needed
to
get
out,
but
traditionally
the
summer
shows
peaks
because
of
tourism
and
then
sort
of
dies
after
the
summer,
and
we
don't
really
see
an
uptick,
usually
until
march
or
so
when
spring
travel
starts
all
over
again
and
our
sole
reliability
in
those
soft
months
is
really
the
the
business
traveler.
So
now
that
that's
gone,
it's
going
to
be
it's
going
to
be
a
transition.
E
And
you
know,
I
would
just
add
one
other
one
other
thing
to
to
what
clarence
said
and
that's
that
some
of
our
concession
operations
were
really
kind
of
geared
towards
the
business.
Traveler
brooks
brothers.
As
a
as
an
example
to
me,
you
know
others
that
that
really
were
catering
to
the
business,
traveler,
audience
and
and
those
businesses
have
in
particular
suffered.
E
A
A
B
E
That's
correct,
essentially,
the
technical
way
that
works
is
marketplace,
takes
in
all
the
rents
from
the
sub-tenants
subtracts,
their
their
piece
to
manage
and
operate
the
concessions
and
then
whatever
is
left
comes
to
the
airport
in
terms
of
revenue.
So
it's
really
it's
it's
airport
enterprise
funds.
Only
it's
it's
not
city.
Other
funds.
B
And
then
my
other
just
a
comment
is
because
of
what
happened
to
all
these
small
concessionaires
and
even
marketplace
phl,
I'm
hoping
that
they
all
were
able
to
apply
for
ppp
funds
around
one
and
two,
I'm
hoping.
Maybe
these
small
concessionaires
could
apply
for
that
restaurant
grants
that
were
available,
and
I'm
also
wondering
if
I
know,
there's
a
tax
credit
being
offered
by
the
federal
government
for
retention
of
employees
that
maybe,
if
we
haven't,
I
just
want
to
give
them
the
support
services.
B
A
Yes,
we
have,
we
have
certainly
made
whatever
information
that's
been
available
to
us.
That
would
assist
in
the
merchants
to
maintain
you
know
their
longevity.
We
passed
that
on
and
many
of
our
merchants
that
participated.
The
most
recent
restaurant
offer.
We
passed
that
on
to
all
of
our
our
merchants.
We've
offered
any
support
we
can
in
helping
them
get
that
those
applications
taken
care
of.
So
we've
we've
all
taken
full
advantage
of
every
opportunity.
That's
been
available
to
us.
A
C
Thank
you
very
much
clarence.
Thank
you
very
much
shelly.
I
just
want
to
follow
up
on
just
something
additionally,
in
terms
of
information
requested
shelly-
and
I
know
I
talked
to
you
offline,
but
could
you
also
just
provide
in
terms
of
again
the
number
of
minority
vendors
to
the
revenue
that
they're
bringing
in
three
the
demographics
of
each
individual
event?
C
Vendors
make
up,
and
so
rather
you
know
this,
how
many
employees
and
what
those
demographics
look
like
in
terms
of
people
who
are
actually
working
with
them
and
then
also
in
terms
of
making
sure
we're
supporting
our
businesses,
who
are
who
are
at
the
philadelphia
national
airport,
so
they
just
clarified
a
relief
that
came
down
from
the
federal
government
in
terms
of
relief
funding
that
supported
businesses
at
the
airport
in
terms
of
rent
relief.
Is
that
correct,
number
27
million
that
was
mentioned
at
the
last
hearing
in
terms
of
moving
forward?
C
E
Yes,
sir,
so
to
answer
the
first
question,
we
will
provide
for
the
official
record
the
information
that
we
that
you
asked
for
last
friday
with
the
numbers
everything
by
the
numbers.
The
second
program
regarding
the
airport
provided
relief
program
for
the
concession
operations,
so
that
is
correct.
It
was
about
27
million
dollars
that
we
received
from
the
federal
government
that
was
specifically
earmarked
for
concession
relief.
E
What
we
did
is
is
the
way
the
sub
leases
work
is
most
of
them
have
what
is
called
a
minimum
annual
guarantee
or
percent
rent
and
says
that
they
have
to
pay
the
higher
minimum
annual
guarantee
or
the
percent
rent
with
so
many
operations
closed
without
not
bringing
in
any
revenue.
If
you
will
it
was,
it
was
unrealistic
to
to
be
able
to
to
ask
for
minimum
annual
guarantees.
E
E
So
in
other
words,
until
we
get
to
at
least
70
of
the
numbers
terminal
by
terminal.
Those
concession
operators
will
not
have
to
pay
minimum
annual
guarantees,
so
only
pay
a
percent
of
sales
that
they
actually
make
and-
and
we
felt
that
that
was
something
that
we
had
to
do
to
to
be
able
to
ensure
the
the
viability
of
these
businesses.
C
E
I
don't
have
the
latest
numbers
that
we
have
are
april.
They
just
came
in
this
morning,
so
I
don't
have
them
committed
to
memory,
but
we
are
you
know.
In
april
we
were
still
down
40
some
percent
over
2019
levels.
We
are
expecting
this
summer
to
perhaps
be
around.
You
know
the
the
upper
60
levels
of
2019,
so
we're
we're
getting
close
and
again
as
long
as
things
start
continue
to
come
back
after
the
summer
travel
surge
with
the
business
traveler.
E
C
C
C
A
C
And
but
the
report
talked
about
how
the
person
that
actually
comes
in
is
that
more
of
an
advantage
than
that
person
who
calls
himself
working
from
home
and
listen.
That's
michael
bloomberg
report,
I'm
just
we're
doing
some
business
reading
and
said:
okay!
Well
now
I
see
the
politics
and
the
dynamics
of
getting
ahead
right
versus
who's
in
the
office
versus
who's,
working
virtually
in
the
office
politics
around
advancement
and
moving
forward.
C
So
we
shall
see,
but
ultimately
you
know
I'm
a
fan
of
the
airport
and
would
like
to
see
us
get
back
to
business.
You
know,
as
usual
at
some
point
in
time
in
the
immediate
future.
So
I
just
want
to
personally
just
thank
the
two
of
you
for
taking
time
out
of
your
schedule
and
if
there
is
no
other
questions
from
members
of
the
committee,
I
just
want
to
say
thank
you
for
your
protection.
B
B
E
E
E
C
C
Welcome
I
want
to
thank
everyone
who
served
at
on
the
panels
and
as
witnesses
for
their
participation.
Today
we
value
input.
I
now
invite
all
panels
and
witnesses
to
please
disconnect
from
the
meeting
before
we
go
into
our
public
meeting.
We
will
now
pause
the
proceedings
briefly
as
multiple
participants
leave
the
air.
C
B
D
C
D
E
C
The
chair
knows
for
the
record
that
councilwoman
kendrick
brooks
seconds
the
motion.
It
has
the
move
in
property
segment
that
bill
number
210
505
be
reported
from
this
committee
with
a
favorable
recommendation
and
further
move
that
the
rules
of
council
be
suspended
to
permit
first
reading
of
this
bill
with
the
next
session
of
council.
C
All
those
in
favor
of
the
motion
will
signify
by
saying
I
I
I
I
I
those
opposed
the
eyes.
Have
it
and
the
motion
carries.
This
concludes
the
meeting
I
want
to
if
there
any.
If
there
are
no
additional
remarks,
I
want
to
thank
everyone
for
taking
time
out
of
your
schedule
for
being
here
for
the
committee
on
transportation
and
public
utilities
today.