HOUSTON – Will the third time be the charm?
It’s a question that will be answered Wednesday morning at Houston City Hall when the very last Agenda Item of Mayor Sylvester Turner’s tenure is announced.
Once again this week, the item catching the eyes of KPRC 2 Investigates is the same as the two previous weeks: “ORDINANCE amending Revenue Agreements with SSP AMERICA IAH ITRP, LLC; PARADIES LAGARDERE @ IAH 2021, LLC; LATRELLES GALLEY, LP; and AREAS HOU JV, L L C for Food and Beverage and Retail Concessions at George Bush Intercontinental Airport/Houston (IAH) and William P. Hobby Airport (HOU)”.
As KPRC 2 Investigates first highlighted, what is being proposed to council members is a vote focused on, “Revenue agreements to be amended to require City Council approval for terminations for convenience or cause. All other terms of the agreements would remain unchanged.”
In the past, the Director of the Houston Airport System and the Mayor of Houston could cancel a contract.
The agenda item backup clearly states, “The four Revenue Agreements contain clauses granting the Director of the Houston Airport System (HAS) authorization to terminate the Agreements at any time for convenience with 30 days written notice.”
However, as we have reported recently, Airport Director Mario Diaz wants Houston City Council to change this practice. As a result, it will be more difficult for a future Mayor to cancel city contracts by making it necessary for a vote on a contract cancellation to go to the city council for a vote.
An airport spokesman told KPRC 2 Investigates, “The administration believes it is a better practice for the city council instead of the airport director to have the final say on discontinuing a contract.”
Councilmember Mike Knox told KPRC 2 Investigates that the proposed move by Mayor Turner and Director Diaz is unlawful.
“It’s illegal because the city charter – which is the constitution of the city says that city council members may not, they shall not engage in any administrative in any department, anywhere in the city,” said Knox.
On Tuesday morning, Councilmember Michael Kubosh echoed Knox’s sentiments during the “Pop-Off Politics” Segment on KPRC 2+.
“Well, I believe the item is an error. I believe it’s illegal because council members have no authority to direct the city Airport Director or any employees of the city to do anything,” said Kubosh.
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Mayor-Elect John Whitmire told KPRC 2 Investigates the day following his election, “They’re not fooling anybody,” regarding the actions of the Mayor and the Airport Director. Whitmire also described the act as, “wrong,” adding “much of the city’s business right now is awful timing.”
Whitmire made his position clear to Houstonians on the unprecedented agenda item including council members.
“I think at this stage when you’re a lame duck you ought to acknowledge there is an election and you’re in transition and you ought to wait for the new administration I would hope council recognizes that,” said Whitmire.
Knox said he feels Mayor Turner is abusing his public office and hopes others -- including federal investigators -- are taking notice of tomorrow’s vote, adding the case is hard to miss.
“I can’t see how they already aren’t alerted, it’s been all over your news program,” said Knox.
Kubosh also believes investigative eyes are watching Wednesday’s developments closely making it clear that he has not been provided with key documents he has requested from the Turner administration.
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The agenda item has been tagged during the two previous City Council sessions and “fireworks” are expected when this agenda is called on Wednesday according to Knox, who added, “Bring popcorn and a large drink.”
Last week, Chris Pappas issued the following statement to KPRC 2 Investigates following the item being tagged during city council: “Due to our pending litigation, we continue to be concerned about the proposed changes to hand-picked concessions contracts. Additionally, the ordinance and amendment are unlawful and violate the City Code and Charter – that is not good governance. The Terminal E contracts that Pappas signed in 2019 have a termination for convenience clauses. Further, every airport concession throughout Texas that Pappas is involved in has a termination for convenience clauses in favor of the Landlord.”
In December 2018, after KPRC 2 Investigates uncovered tens of millions in spending and mismanagement of the International Redevelopment Project (ITRP) at Bush Intercontinental Airport.
When we spoke to Mayor Turner about approximately $85 million spent without much earth being moved on the project the mayor explained why contracts were canceled, “When I came in and reviewed what was before me, I was not confident that it was the best deal so we reset it.”
However, in 2023, Mayor Turner no longer believes that no mayor no longer should have that ability when it comes to certain lucrative concessions contracts inside of the Houston Airport System.