Concessionaire Meeting
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1 Concessionaire Meeting Wednesday, January 20, 2016
2 Agenda Welcome/Introductions Concessions Handbook Review ACDBE Marketing Finance/Internal Audit Pre-Opening Reminders Laurie Noyes, Director of Airport Concessions Concessions Team Cheryl Hawkins, Business Diversity Manager Kari Goetz, Director of Marketing Laura Tatem, Director of Audit Tony Conza, Senior Manager, Business Analysis, Reporting, & Revenue Control Concessions Team Q & A 2
3 3
4 Irene Pierpont and Nina Mahoney, Sr. Managers Concessions Concessions Handbook
5 Handbook Contents Contacts Quick Reference Handbook Checklist Misc. 5
6 Operations Pricing Standard Price Conformance Price Disclosure Employee 10% Discount To Go Within lease line Sampling Cleanliness Maintenance Waste Management Pest Control 6
7 Communications Advertised sales/promotions Media requests/inquiries Contact information Concessionaire meeting 7
8 Compliance Signage Pre-approved Airport signs/banners Distribution of material Operational Performance audits Checklist Annual reviews 8
9 Compliance Prohibited Acts Employee misconduct Unapproved products Unapproved price or menu changes Tipping language/policy Smoking in uniform Failure to Comply First Violation Second Violation Third Violation Fees $500/day security, health code, critical $100/day operations, pricing, late pricing survey, late reporting, noncritical 9
10 Cheryl Hawkins, Business Diversity Manager ACDBE Compliance
11 Airport Concession DBE Program Department Staff Introductions Compliance and Monitoring - Overall ACDBE goals: F & B = 29% / Retail = 23% of total annual gross receipts - ACDBE JV partner is responsible for a distinct, clearly defined portion of the work of the JV agreement - ACDBE compliance reports due 15 days after the end of each calendar month - Concession Site Visits ACDBE Quarterly Meeting
12 Kari Goetz, Director of Marketing Marketing
13 Regular Board Meeting / August 2014 Concessionaire Meeting/ January7,20, 2016 Hillsborough Hillsborough County County Aviation Aviation Authority Authority
14
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21 Laura Tatem, Director of Audit and Tony Conza, Senior Manager, Business Analysis, Reporting, & Revenue Control Finance/Internal Audit
22 Finance and Internal Audit Various Payments Due Each Month Reports Due with Corresponding Due Dates Non-compliance Internal Audit s Function
23 Various Payments Due Monthly Rent/Minimum Annual Privilege Fee (MAPF) Rent The Premises Rent is established by the Authority and is based on fair market rental for all occupied space and is subject to Florida sales tax. It is paid in monthly installments without demand beginning on the Commencement Date on the first day of each month. MAPF Commencement Date through Package Completion Date- abated Package Completion Date through end of that year- pro-rated First full year 85% of the Privilege Fee paid in the prior Contract Year, but never less than the initial MAPF set forth in the Summary Contract Provisions
24 Various Payments Due Monthly (cont.) Privilege Fee Commencement Date through Package Completion Date- (Gross Receipts x % Rent) Package Completion Date through end of that year- Privilege Fee If gross receipts x % rent is greater than MAPF for a month Concession Service Fee Paid within 10 days after the last day of each month Not additional rent, but payment excluded from the tax imposed by Florida Statute Section (10)(j) Utilities Authority will provide certain utility connections to the Premises as stated in Concessions Design Criteria Manual Concessionaire responsible to pay for all utilities necessary in the operation of the Concession Employee Parking/FBI Fees/Badge Fees/Other Miscellaneous Invoiced Monthly Payment is due 15 Days from the date of invoice
25 Reports Due with Corresponding Due Dates Daily Sales Entered into Portal Monthly Report Information Entered into Portal No later than 10 days after end of each month Reference form set forth in Exhibit C Gross Receipts for each Concession Location
26 Reports Due with Corresponding Due Dates (cont.) Quarterly Income Statement No later than 30 days after the end of each calendar quarter Signed by Concessionaire s chief financial officer or authorized designee Send to the Concessions Department Annual Audit Provided by external, independent CPA firm No later than 90 days after the end of each Contract Year Schedule of Gross Receipts + Privilege Fees for each month in the Contract Year Send to Finance Department
27 Fees and Fines for Non-compliance Interest Charged on Late Payments The Authority reserves the right to charge interest on Rents, fees, or charges received after due dates Interest can be charged at the Federal Reserve Bank of New York prime rate in effect on the date the rents, fees, or charges became due plus four percent (FRBNY prime + 4% or 18% per annum, whichever is greater) Late Charge for Monthly Report per day Late Charge for Annual Audit per day
28 Internal Audit s Function Resource / Team / Success Right to perform audits, inspections, or attestation engagements Gross Receipts Contract Compliance Concessionaire s Records Examples: general ledgers, sales journals, bank deposit slips, bank statements, etc. All records to be provided in timely manner May assess liquidated damages per day
29 Internal Audit s Function (cont.) Underreporting or Underpayment Interest Assessment Gross receipts underreported by 3% Expense of engagement billed to Concessionaire Gross receipts underreported or underpaid by 5% Contract terminated for cause upon 30 days written notice Ask, ask, ask
30 Irene Pierpont and Nina Mahoney, Sr. Managers Concessions Pre-opening Reminders
31 8 Weeks Out Liquor license application Grand opening planning Central Receiving & Distribution Center (CRDC) Bradford Airport Logistics Mike Pardikes, General Manager 31
32 6 Weeks Out Hire Badging appts. (2-3 weeks in advance) Employee parking Customer Service training Airport familiarization 32
33 30 Days Out Submit for approval Proposed Pricing Uniform Standards Store Hours Return Policy To Go Packaging Cleaning Schedule Maintenance Schedule Transporting Carts 33
34 Questions & Answers 34
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