Board continues vote on non‑competitive lease waiver for SFO employee cafe after questioning

The San Francisco Board of Supervisors on Tuesday voted unanimously to continue for one week consideration of a proposed waiver of the city—s competitive‑bidding requirement for a lease at San Francisco International Airport (SFO) for an interim employee cafeteria at Terminal 1.

The board—s action followed extended questioning of airport staff about why the item was presented as a noncompetitive waiver and how long the proposed lease would run. "This lease has been in place and is now proposed, should this waiver be granted, as a 3‑year lease with 2 1‑year extensions," Supervisor Peskin said, adding that the proposed multi‑year term "calls into question why we would be waiving the competitive bid process." He moved to continue the item one week to allow the airport commission to consider a three‑year flat lease.

Kathy Weidner, representing San Francisco International Airport, told the board the Terminal 1 redevelopment makes long‑term permanent space uncertain. "When this was looked at ... it was determined that we couldn't ensure a permanent space in Terminal 1 where the employee cafeteria is located for any longer than 3 years," she said, adding airport staff had surveyed industry operators and found little interest in bidding on a very temporary space.

Several supervisors pressed for more detail about the outreach. Supervisor Campos asked who airport staff spoke with and how many operators were contacted; Weidner said she did not have the specific list immediately available and offered to provide it. "I'd be happy to get you that information," she said.

Supervisor Cohen and others said they were uncomfortable waiving the competitive process without firmer evidence that a public solicitation would fail. Supervisor Cohen noted the cafeteria began as a pilot project and "went on a lot longer than we would normally ever consider," and that the airport commission initially authorized the arrangement.

Supervisor Farrell said the interim cafeteria serves badged airport employees at pre‑security locations who have brief meal breaks and said a permanent location in Terminal 2 is expected to be subject to competitive procurement once space becomes available.

On the board—s motion to continue, Supervisor Peskin moved and Supervisor Kim seconded. The roll call showed 10 ayes and the item was continued to the board—s October 4, 2016 meeting.

Notes: The proposal as presented requested a waiver of Administrative Code Section 2A.173 for a lease with Amora International Inc., through the Airport Commission, for an interim employee cafe at Terminal 1. The airport said the current operator would remain in place under the proposed arrangement if the waiver were granted; it also said it had done industry outreach but did not provide specifics at the hearing and agreed to supply that list to supervisors.

Votes at a glance: On the continuance motion to 10/04/2016, the roll call recorded "Breed, aye; Campos, aye; Cohen, aye; Farrell, aye; Kim, aye; Mar, aye; Peskin, aye; Tang, aye; Wiener, aye; Yi, aye."