Hillsborough County Aviation Authority Solicitation Addendum Addendum No.: 1 Solicitation No.: 16-534-030 Tampa Airport Concessions Redevelopment Program; Spa Services Solicitation Title: Concession Request for Proposals Addendum Date: 7/14/16 Procurement Agent: Amy Flack NOTE: The due date for submission of the Response remains on July 28, 2016 by 2:00 p.m. THE FOLLOWING ITEMS ARE MADE AND HEREBY BECOME A PART OF THIS SOLICITATION AS PREPARED BY PROCUREMENT: REPLACE: Delete Appendix C, Response Form J.1, Pro Forma, and replace with REVISED Appendix C, Response Form J.1, Pro Forma, which is posted on the Authority website (www.TampaAirport.com > Learn About TPA > Airport Business > Procurement > Current Solicitation Opportunities) and is available for download. REPLACE: Delete Attachment I, Historical Enplanements, and replace with REVISED Attachment I, Historical Enplanements, included in this Addendum No. 1. ADD: Attachment VI, Concessions Historical Sales, is ADDED pursuant to this Addendum No. 1 and is hereby made part of the Tampa Airport Concessions Redevelopment Program; Spa Services Concession Request for Proposals, No. 16-534-030. REPLACE: Request for Proposals, Section 1.03, Background, Paragraph 2, is DELETED and replaced with the following: Hillsborough County Aviation Authority ADDENDUM NO.1 07/14/16 Issued RFP No.16-534-030 Page 1 of 5 Tampa Airport Concessions Redevelopment Program; Spa Services Concession The Airport is served by over 17 commercial airlines operating from four airside terminals: Airside Terminal A with 18 gates, Airside Terminal C with 16 gates, Airside Terminal E with 13 gates, and Airside Terminal F with 13 gates. During the Authority fiscal year (FY) ending September 30, 2015, the Airport served approximately 18.5 million passengers. The current concessions program is comprised of approximately 65 units within the categories of food and beverage, retail, services and duty free. In FY2015 the current concessions program achieved $105 million in gross sales. REPLACE: Appendix D, Sample Lease and Concession Contract, Article II, Summary of Contract Provisions, Page 12, Concessions Services Fee Rate, is DELETED and replaced with the following: Concessions Services Fee Rate: 0.5% of Gross Receipts REPLACE: Appendix E, Concession Services, Premises and Merchandising, Page 6, Key Business Terms, Concessions Services Fee Rate, is DELETED and replaced with the following: Concessions Services Fee Rate: 0.5% of Gross Receipts QUESTIONS AND RESPONSES: Q1. Can you share documentation supporting the statement that 90% of the enplanements of terminal E are in Gates E62-E68? R1. The Authority receives enplanement data based on airlines, not by individual gates. Delta is the signatory airline on gates 62, 64, 65, 66, 67 and 68 on Terminal E and carries 90% of the traffic to this airside. Please refer to REVISED Attachment I, Historical Enplanements, included with this Addendum No. 1. Q2. How are the gates E69-E74 used today? R2. Delta is the signatory airline on gates 69 and 70 and also uses gate 71. Air Canada uses gates 72 and 73 and WestJet uses gate 74 on Terminal E. Q3. What is the plan for the future years for gates E69-E74? R3. The Concessions Redevelopment Program brings concessions closer into the gate hold areas, as evidenced by Four Green Fields, Tampa Bay Times and the Spa locations near gates 62 Hillsborough County Aviation Authority ADDENDUM NO.1 07/14/16 Issued RFP No.16-534-030 Page 2 of 5 Tampa Airport Concessions Redevelopment Program; Spa Services Concession through 68, and Starbucks, duty free, and other concessions near gates 69 through 74. The Airport is actively seeking additional carriers as well as new flights with our existing carriers. Please refer to Section 1.03, Background, of the Request for Proposals for Tampa Airport Concessions Redevelopment Program; Spa Services Concession, RFP No. 16-534-030. Q4. What is the proportion of enplanements on gates 62 and 64 in Terminal E? R4. Delta is the signatory airline on gates 62 and 64, on Terminal E and carries 90% of the traffic to this airside. Please refer to REVISED Attachment I, Historical Enplanements, included with this Addendum No. 1. The Authority receives enplanement data based on airlines, not by individual gates. Q5. Can you share the historical sales of the concessions (retail and food & beverage) in terminals A, C, E and F? R5. Please refer to Attachment VI, Concessions Historical Sales, included with this Addendum No. 1. Q6. In the case of a LLC between a prime concessionaire and an ACDBE entity, is it acceptable to include an unsigned draft of a LLC operating agreement? R6. No. Q7. What is the proportion of international flights in terminal F? R7. Please refer to REVISED Attachment I, Historical Enplanements, included with this Addendum No. 1. Q8. What are the operating hours expected for the spa services per terminal? R8. Please refer to Appendix E, Concession Services, Premises and Merchandising, under Special Conditions. Q9. What is the proportion of enplanements in terminal F between gates F85 and F90? R9. The Authority receives enplanement data based on airlines, not by individual gates. American Airlines is the signatory airline on gates 86 and 87 and uses gates 85, 88 and 89. Silver uses gate 85. Copa, Cayman, Edelweiss, Sun Country and British Airways use gate 88. British Airways, Cayman, WestJet, Sun County and Copa use gate 90. Please refer to REVISED Attachment I, Historical Enplanements, included with this Addendum No. 1. Q10. What is the proportion of enplanements in terminal A between gates A1 and A11? R10. The Authority receives enplanement data based on airlines, not by individual gates. Hillsborough County Aviation Authority ADDENDUM NO.1 07/14/16 Issued RFP No.16-534-030 Page 3 of 5 Tampa Airport Concessions Redevelopment Program; Spa Services Concession United is the predominant airline on Terminal A and the signatory airline on gates 6 through 9. Sun Country uses gate 10, Alaska Airlines uses gates 11 and Silver Airways uses gates 1 and 3. There is no gate 2. Please refer to REVISED Attachment I, Historical Enplanements, included with this Addendum No. 1. Q11. Can you please confirm the number of gates in each terminal. The information on the maps and RFP narrative don’t match. • Are there 17 or 18 gates in Terminal A? • Are there 13 or 14 gates in Terminal E? • Are there 12 or 14 gates in Terminal F? R11. See REPLACE section noted above regarding Request for Proposals, Section 1.03, Background, Paragraph 2. Q12. If we need an additional storage in the airport, what is the rent per square foot? R12.The initial Support Space Rent Rate is $22.00 per square foot. Please refer to Appendix D, Sample Lease and Concessions Contract, Article II, Summary of Contract Provisions. Q13. Is it possible for an entity that was awarded a concession contract at Tampa International Airport and failed to sign a lease agreement with the Airport Authority to propose on Solicitation 16-534-030 TPA? R13. Please refer to Section 4.0, Minimum Qualifications, of the RFP. Q14. Does the Concession Services Fee include the distribution center fees? R14. Yes. Please refer to Appendix D, Sample Lease and Concession Contract, Article II, Summary of Contract Provisions. Q15. Would you consider to reduce the Concessions Services Fee to 0.5% of the Gross receipts? R15. Yes. Q16. Can you confirm that the initial premises rent is subject to the sales tax of 6%? R16. Please refer to Appendix D, Sample Lease and Concessions Contract, Article V, Section 5.02, Premises Rent. Applicable sales tax is 7%. Q17. With an initial premises rent rate of $41 per sq. ft and an minimum annual privilege fee of $110,000, the total Minimum Annual Guaranteed rent for this package is $204,000. This rent is significantly higher than any rent paid by spa services concessions in comparable mid- size airports. Which factors explain this discrepancy? Hillsborough County Aviation Authority ADDENDUM NO.1 07/14/16 Issued RFP No.16-534-030 Page 4 of 5 Tampa Airport Concessions Redevelopment Program; Spa Services Concession R17. In consideration of projected enplanement growth, spa services sales, and capital investment, Authority believes the Premises Rent and Minimum Annual Privilege Fee are reasonable and allow fair, market-based returns to Authority and Concessionaire. Q18. Is it possible to negotiate the initial premises rent rent or the minimum annual privilege fee for this package? R18. No. However, note that the Premises Rent is based on actual area developed by Concessionaire; the initial Premises Rent will be adjusted based on the amount of space Concessionaire develops in Airside Terminal E. Please refer to Appendix E, Concession Services, Premises and Merchandising, under Special Conditions. Q19. Is there a water/sewer point of access in the spa location in terminal A? R19. Please refer to Attachment V – Concessions Design Criteria Manual, 3.6.4 Plumbing. Q20. Is there a water/sewer point of access in the spa location in terminal C? R20. Please refer to Attachment V – Concessions Design Criteria Manual, 3.6.4 Plumbing. Q21. Is there a water/sewer point of access in the spa location in terminal E? R21. Please refer to Attachment V – Concessions Design Criteria Manual, 3.6.4 Plumbing. Q22. Is there a water/sewer point of access in the spa location in terminal F? R22. There is no water/sewer point of access in the spa location in Terminal F. The restrooms are located directly across from the spa location which indicates adjacent plumbing access. Please refer to Appendix E, Concessions Services, Premises and Merchandising, Page 8. Q23. Would HCAA allow the use of a portable sink instead of regular plumbing installations in terminals E and F? R23.