Doing Business w ith McCarran Clark County Department of Aviation - - PowerPoint PPT Presentation

Doing Business w ith McCarran

Clark County Department of Aviation August 24, 2010

Agenda

PART I

• About McCarran International Airport (Dolores Leyva)
• Disadvantaged Business Enterprise Program (Dolores Leyva)
• Overall Concessions Retail Plan (Scott Van Horn)
• Current/Upcoming Specialty Retail Opportunities (Scott Van Horn)
• RFP Process (Scott Van Horn)
• HMSHost - Upcoming Food & Beverage Opportunities
• HMSHost Overall Concessions Program Goals (Anthony Alessi)
• Airport Experience/Operations (Betty Bauerly)
• ACDBE Certification/Proposal Submittal Timeline (T3) (Yasmin Sheriff)
• Airport Tenant Improvement Process (Ellen Marciel)
• Questions & Answers

PART II

• ACDBE Certification Workshop (Airport Concession Consultants)
• Questions & Answers

About McCarran

by Scott Kichline Commercial/Business Development Manager

About McCarran

• Owner & Operator:

Airport System:

• Financing the Airport:
• 2009 Statistics

– Seventh-busiest airport in North America – Second-busiest Origin & Destination airport – 40.5 million passengers – 111,000 Average daily passengers – 1,400 Average daily aircraft operations

• Airport Security
• Tenant Security Responsibilities

– Comply with all security rules and procedures – Comply with all badging and auditing requirements – Adhere to vehicle decal and registration requirements

• Airport Tenant

– Estimated Investment – Improvement Process - To be discussed later in the session.

Operating Requirements

Regulations

• Federal

– Federal Aviation Administration – Transportation Security Administration

• State

– Nevada Revised Statutes

• Local

– County ordinances

The Disadvantaged Business Enterprise Program

by Dolores Leyva ACDBE/DBE Liaison Officer

Overview

• The U.S. Department of Transportation Disadvantaged

Business Enterprise (DBE) program is a federally mandated program implemented through Code of Federal Regulations 49, Parts 23 and 26.

• Provides strict requirements for the establishment and

implementation of participation by minority and women-

• wned businesses and in airport concessions.
• The DBE regulations:

– Require state and local transportation agencies that receive federal financial assistance to establish a formal DBE program to implement the regulations. – Require Airports to establish a formal DBE and ACDBE program, as applicable.

Airport DBE Program

• In accordance with U.S. Department of Transportation

CFR 49, Parts 23 and 26, the Department of Aviation has established a

– Disadvantaged Business Enterprise (DBE) Program; and – Airport Concession Disadvantaged Business Enterprise (ACDBE) Program.

• Program Objectives

Certification

• To be certified as a DBE, a firm must be a small

business 51% owned and controlled by socially and economically disadvantaged individuals.

– minorities or women are presumed to be socially disadvantaged. – Disadvantaged owners personal net worth cannot exceed $750,000.

• McCarran is part of the Nevada Unified

Certification Program, and is one of three certifying agencies.

Current Status of DBE Program

• The Airport’s DBE total revenue percentage in

concessions is 17.9 percent, which exceeds the FAA’s aspirational goal of 10 percent;

• Some concessionaires have been able to compete as

prime contractors and expand their operations into

• ther airports;
• The DBE program has enabled the department to

expand its overall diversity outreach activities.

Current Status

• f ACDBE Program

Specialty Retail Concessionaires

– Local Concessionaires

• 10 ACDBE Certified Tenants
• 50+ Locations

Food & Beverage Master Concessionaire

• HMSHost, the master concessionaire for food

and beverage, has committed to a goal of 27.5% participation. News & Gift Concessionaire

• By mutual agreement Hudson has committed

to a goal of 20% participation.

How Do I Apply?

• Application Process

– www.mccarran.com/doingbusiness/DisadvantagedBusinessProgram.html

• Process

– 45 to 90 days

• Contact

Dolores Leyva DoloresL@mccarran.com (702) 261-5123

• Brochure “Opportunity Through Partnership”
• McCarran’s Website
• DBE Workshop at 1 P.M.

Opportunities through Concessions

by Scott Van Horn Airport Concessions Manager

• Gaming
• Advertising (indoor & outdoor)
• Transportation (limousines, shuttle buses)
• Rental cars
• Passenger services (ATMs, shoeshine, vending)
• Specialty retail

– National mix – Local opportunities

• RFP Process
• News & Gift (master concessionaire)
• Food & Beverage (master concessionaire)

Concession Components

Retail Concession Plan Revised June 1, 2010

by Scott Van Horn Airport Concessions Manager

Airport Concession Plan

• Original Plan approved by the Board on February

21, 2006, later Updated on December 4, 2007.

• Recent Updated Plan Present before BOCC June

1, 2010.

– Provides National Brand or Local Small Business designation to all remaining Specialty Retail space not previously approved by the BOCC. – Provides recommendations to all Specialty Retail Agreements that expire prior to December 31, 2012. – Identifies and provides recommendations for new Specialty Retail opportunities in D Gates and Terminal 3.

Terminal 1 Esplanade

TERMINAL 1, ESPLANADE

Terminal 3 Level 2

Terminal 3 Opportunities Level 1

D Gates

Airport Concession Plan CURRENT MIX (67 locations)

• 47 or 70% are Local/Small Business
• perated
• 20 or 30% are National Brands, of which

40% are operated by local companies

POST NEW LOCATIONS

• 44 or 66% Local/Small Business operated
• 23 or 34% National Brands, of which 10 or

43% are operated by local companies

RFP Process

• Local selections made through a

competitive Request For Proposal (RFP) process

• RFP advertised in local papers, invitations

sent to those on interest list

• RFP Timeline:

– Release of RFP – Pre-Proposal meeting – Deadlines for written questions – Deadlines for response to questions – Deadline for submission of RFP – Anticipated date for approval by BOCC

RFP Copies

• All upcoming RFPs are available

free of charge via our website.

http://www.mccarran.com/DoingBusiness/Concession.html

RFP Copy

Post RFP Selection EVALUATION:

• All RFPs evaluated by a team of reviewers
• Evaluate financial proposal, concept and

merchandise, experience, financial capability

• Score and rank proposals

SELECTION:

• Present recommendation to Clark County Board of

Commissioners

• Board makes selection
• Begin contract negotiations

Post RFP Selection

AGREEMENT PROCESS:

• Agreement is drafted based on the proposal submitted
• Agreement is signed by the new tenant and sent to the

Board of Clark County Commissioners (BOCC) for twice:

– First, to advertise the intent to enter into an Agreement – Second, to award the Agreement

• BOCC authorizes the Director of Aviation to execute the

Agreement READY TO BEGIN BUILDOUT PROCESS:

• The tenant forwards design and merchandise layout

plans to the Department of Aviation for review

– Plans are subject to the Airport’s Project Concept Approval Process

Lease Agreements Terms and conditions

• Assigned Areas
• Use Clause
• Rent
• Redetermination of Rent
• Method of Payment and Reports
• County to Provide
• Company to Provide and Maintain
• Hours of Operations
• Control of Personnel
• Insurance
• Airport Personnel Identification

RFP Release Timeline

• D Gates Locations

– Release Mid 2011

• Esplanade

– Release September 2010

• Terminal 3

– Release September 2010

Food & Beverage Opportunities through HMS Host

(Please Reference their presentation)

Tenant Improvement Process

by Ellen Marciel Construction Project Coordinator

Tenant Improvement Process

• PCA Approval
• Design phase
• Permitting phase
• Construction phase

Tenant Improvement Process

PCA Approval

• Conceptual ideas for

improvements to lease space

• Routed to airport

departments for approval

• Released to Project

Coordinator

Design Phase

Tenant Improvement Process

Design phase

• Design Kick Off meeting,

if necessary

• Construction drawings

routed for airport approval

• All improvements must be in

accordance with our Tenant Improvement Manual

Permitting Phase

Permitting phase

• Most improvements require

permitting from Clark County Building Department

• While waiting for building

permits, get your contractors badged

Tenant Improvement Process

Construction phase

• Pre-Construction

Meeting, introduce airport inspectors

• As-built deposit required, to

be returned in full at the completion of construction

• Work progresses to

punchlist

Tenant Improvement Process

Construction phase, cont’d

• Once punchlist is satisfied,
• btain final sign off
• Designer prepares record

drawings, based on contractor’s as-builts

• Return of as-built deposit,

and project closeout

McCarran International Airport Concession, Business & Development Offices, 5th Floor (702) 261-3443 http://www.mccarran.com/doingbusiness/main.html Scott Kichline Manager, Commercial/Business Development 702-261-5690, ScottK@mccarran.com Scott Van Horn Airport Concessions Manager 702-261-5830, ScottV@mccarran.com Dolores Leyva ACDBE/DBE Liaison Officer 702-261-5123, DoloresL@mccarran.com

Contact Information

Questions & Answers