FOR FOOD AND BEVERAGE AND RETAIL/DUTY FREE CONCESSIONS AT VICTORIA INTERNATIONAL AIRPORT

Transcription

1 REQUEST FOR PROPOSALS FOR FOOD AND BEVERAGE AND RETAIL/DUTY FREE CONCESSIONS AT VICTORIA INTERNATIONAL AIRPORT DATE OF ISSUE: JUNE 1, 2012 DUE DATE: SEPTEMBER 7, 2012 by 12:00 PM PDT Page 1 of 46

2 TABLE OF CONTENTS 1.0 INVITATION PROPOSAL INFORMATION CONCESSION AGREEMENT INFORMATION SCHEDULES AND APPENDICES: SCHEDULE ONE RECEIPT CONFIRMATION FORM SCHEDULE TWO SUBMISSION CHECKLIST SCHEDULE THREE COMPANY PROFILE SCHEDULE FOUR EXPERIENCE AND REFERENCES SCHEDULE FIVE FINANCIAL INFORMATION SCHEDULE SIX MANAGEMENT AND OPERATIONS PLAN SCHEDULE SEVEN DESIGN OF PROPOSED LOCATIONS SCHEDULE EIGHT CUSTOMER SERVICE PLAN SCHEDULE NINE FINANCIAL OFFER(s) SCHEDULE TEN PROPONENT S DECLARATION APPENDIX A LAYOUT OF AIRPORT TERMINAL APPENDIX B LAYOUT OF EXISTING CONCESSIONS APPENDIX C LAYOUT OF FUTURE CONCESSIONS APPENDIX D CONCESSION ACTIVITY STATISTICS APPENDIX E PASSENGER ACTIVITY AND MARKET INFORMATION APPENDIX F PASSENGER DEMOGRAPHICS APPENDIX G PROPOSED CONSTRUCTION SCHEDULE Page 2 of 46

3 1.0 INVITATION 1.1 VICTORIA AND VICTORIA INTERNATIONAL AIRPORT Victoria, British Columbia, the Provincial Capital city is located on the southern tip of Vancouver Island off Canada s Pacific Coast. Victoria has long been renowned for its old world charm and British heritage but the city also has a very vibrant and intriguing cosmopolitan side which includes world class accommodations, shopping, spas, and culinary experiences. Victoria s accolades in 2011 include Conde Naste Travellers Readers Choice Awards 3 rd Best City in Canada and Best Island in North America and TripAdvisor Travellers Choice Awards Top 10 Family Vacations in Canada and 5 th Best Food & Wine Destination in North America. Victoria enjoys one of Canada s mildest climates which allows for the enjoyment of its spectacular ocean and mountain vistas along with the ability to enjoy many outdoor activities including world famous gardens, hiking, cycling, and fishing. Not only an attractive city and popular tourism destination, Victoria also has a thriving technology sector that has risen to be its number one private industry. It is also proud of its large student population here to attend top post secondary academic institutions like the University of Victoria, Royal Roads University, Camosun College, and the Canadian College of Performing Arts. Victoria is also rich with First Nations history and has a very active and talented arts community. Victoria International Airport ( Airport ) is operated by the Victoria Airport Authority ( Authority). Almost half of Vancouver Islands 700,000 population lives around Victoria and the southern end of Vancouver Island. The Airport is primarily an O and D (Origin and Destination) airport and the second busiest (based on passengers) in the Province of British Columbia after Vancouver with 1.5 million passengers annually, and the tenth busiest in Canada. The Airport is well served with more than 120 daily flights throughout North America. The Airport was most recently rated one of the top ten most loved airports in the world by CNNgo among a list of favourites like Singapore Changhai, Hong Kong International and Zurich. The Airport was also the recipient of ARN s (Airport Revenue News) Best Customer Service Award Small Airport Category in Additional information on passenger activity and market information is contained in (Appendices E and F). Page 3 of 46

4 Mission and Guiding Principles: Our mission is to provide a safe, secure and efficient airport that supports the quality of life, sustainability and economic development of our region. Our Guiding Principles include safety and security as our number one priority, being a leader in environmental management, delivering exceptional levels of customer service and value while always keeping ease and function top of mind, being considered an employer of choice, working constructively with our stakeholders and community, managing our finances and infrastructure prudently, promoting our region, and always striving to foster leadership and innovation. Air Terminal Improvement Project: The Authority is embarking on an 18 month terminal improvement project. This project will see improvements to passenger flow, security screening, and components of our concessions program. At the Pre board Screening checkpoint screening lines will increase from three with the capacity for five to handle peak passenger flows. Our current food and beverage concessions program is well represented and successful with our regional White Spot full serve restaurant brand and National Tim Hortons and Starbucks brands however, the post security food and beverage and retail offerings are not in keeping with passenger expectations. A new larger post security food and beverage space will provide an opportunity to create a unique locally focused concept that is reflective of Victoria s vibrant food scene. On the retail side our goal is to create a better balance by essentially reversing the retail spaces to increase its presence post security and reduce its size pre security. This provides an opportunity to create a better offering for travelers post security that is also more reflective of Victoria and Vancouver Island. Construction of a centralized elevator, escalator and stairs will allow for more intuitive passenger circulation and increased seating and new décor at the bridged gates will improve passenger experience and create a better overall environment. Project Cost: $8.1 Million Project Start: November 2012 Project Completion: March 2014 Page 4 of 46

5 1.2 CONCESSION PROGRAM GOALS The Authority s overall vision is to be the best airport anywhere and expects its service providers to be part of a team that delivers that vision. The Authority s concession goals are to: Improve existing post security food and beverage and retail/duty free by creating a concession program with exceptional quality while maintaining ease and function for our customers through the strategic placement of interesting concession concepts, blending a merchandise mix which reflects the vibrancy of our region, and satisfies the changing wants of our customers. Provide quality customer service by encouraging concessionaires to attract and retain welltrained, friendly and efficient staff that effectively monitors activities and stimulates sales. Provide Value in all transactions with pricing at no more than local market prices. Reinforce our airport s sense of place by introducing a fresh local food concept airside in addition to the current regional and national brands located pre security and a new retail offering both pre and post security that differentiates the airport and creates a unique sense of place that is Victoria and Vancouver Island. Develop, manage and maintain aesthetically appealing build outs that meet the Authority s Tenant Design Standards while having an appealing merchandise mix that satisfies the changing needs of the market, incorporates local flavour and market trends. Page 5 of 46

6 SUMMARY OF CURRENT CONCESSIONS FOOD AND BEVERAGE Name Category Location Area (m 2 ) Common Use Seating (m 2 ) 2011 Annual Gross Sales Photo Tim Hortons Quick Serve Pre Security $1,140,142 White Spot Casual full service dining with bar Pre Security 424 n/a $1,633,969 Capital Brew We Proudly Brew Starbucks (See Note re: MAG below) Specialty Coffee Pre Security $294,000 Airside Café and Lounge Quick Serve and Lounge Post Security $1,060,858 RETAIL/DUTY FREE News and Gifts Shop News, gifts, convenience, souvenirs, duty free Pre Security 224 $1,380,467 Airside Retail Kiosk News, convenience, duty free Post Security 15 $386,648 Notes: All branded concepts were initiated and fully capitalized by the Authority. Seating areas are currently excluded from lease and are maintained by the Authority. Tim Horton s, White Spot and Starbucks are strong National and Local British Columbia brands currently operated by Compass Group Canada Ltd., an affiliate of SSP whose Concession Agreement is scheduled to terminate August 31, Starbucks opened March 1, MAG based on 2012 proforma of approx. $385,000 not 2011 Capital Brew gross sales. Page 6 of 46

7 1.3 CONCESSION OPPORTUNITIES This RFP contains two package opportunities at the Airport: Food and Beverage Package One for four (4) locations; and Retail/Duty Free Package Two for two (2) locations. Food and Beverage Package One: Four (4) specific food and beverage locations comprise Package One with the Airport as outlined below: # Concession Location Area m 2 State of Build Out 1. Tim Hortons Pre security 127 Already Built out 2. White Spot Pre security 424 Already Built out 3. Starbucks Pre security 41 Already Built out 4. Airside Restaurant and Bar Post security 148 Must be built out Tim Hortons, White Spot, and Starbucks are already built out by the Authority and are operational. (See Capital Investment below for details). The Airside Café post security location will be removed during the construction phase and replaced with a new build out of approximately 148m 2 which the concessionaire must build out to service a restaurant and bar in the lower passenger departure lounge. The Authority is providing the venting, grease trap and the ceiling for post security kitchen; however, concessionaire will pay back this capital investment over a (1) year period as noted in the Capital Recovery Fee section. Retail/Duty Free Package Two: Two (2) specific retail/duty free locations are available within the Airport as noted below: # Concession Location Area m 2 State of Build Out 1. Retail/Duty Free Pre Security 45 Must be built out 2. Retail/Duty Free Post Security 135 Must be built out Construction will require a new build out of the existing pre security retail/duty free store of approximately 45 m 2. The existing post security retail/duty free kiosk will be replaced with a new build out of approximately 135 m 2 (in the current approximate location of the existing Airside Café) to accommodate a larger post security retail/duty free offering. Each package will be evaluated on its own merit. Conditions should not be placed on either package and will not be regarded as a component of the evaluation process. Proponents may propose on one or both entire packages and may be awarded both packages if the offer is deemed the best on the merit of each package offer received. Concessionaires must be prepared to participate on either package if proposing on both packages in the event only one package proposed is chosen. Page 7 of 46

8 1.4 TYPE AND DURATION OF AGREEMENT The Authority will enter into a Concession Agreement with the successful Proponent(s) for the following terms: Food and Beverage Package One: ten (10) year term with Authority option for a two (2) year renewal. The Concession Agreement will allow operational take over of existing facilities twenty five (25) days from the date that the Concession Agreement is executed; however, the term of the Concession Agreement will not commence until ninety (90) days after the postsecurity food and beverage location has been turned over to the successful Proponent(s) or facility opens for business, whichever is earlier. Retail/Duty Free Package Two: seven (7) year term with Authority option for a three (3) year renewal. The Concession Agreement will allow operational take over of existing facilities twenty five (25) days from the date that the Concession Agreement is executed; however, the term of the Concession Agreement will not commence until ninety (90) days after the postsecurity food and beverage location has been turned over to the successful Proponent(s) or facility opens for business, whichever is earlier. The retail/duty free operator will be required to provide temporary facilities in the post security passenger departure lounge as well as in the pre security arrivals rotunda during the construction period while the post security retail location is being built out. If the Proponent prefers a retail duty paid operation, it may propose this type of concession; however, the Authority will require traditional duty free products such as tobacco, liquor, perfume and cosmetics to have special pricing to provide same as pricing as if it were dutyfree. Note that the percentage fee will be 15% for the duty paid lower discounted products as well in this case or as proposed and accepted by the Authority. 1.5 FINANCIAL TERMS The financial terms include a minimum annual guarantee (MAG) or percentage of gross revenue, whichever is greater, a capital investment in building out new facilities, a capital cost recovery to recognize the capital investment already made by the Authority in Tim Hortons, White Spot and Starbucks, and a capital cost recovery of the grease interceptor and exhaust fan and duct work required for post security kitchen facilities which the Authority will install. Minimum Annual Guarantee by Package The Minimum Annual Guarantee (MAG) is outlined below for each Location; however this amount may be bid up by the Proponent(s). Only percentage rent will be applicable to any temporary locations. MAG or percentage rent, whichever is greater will be applicable once new build outs are open and to existing pre security built out for food and beverage locations. Page 8 of 46

9 Food & Beverage Package One: # Concession Location Area m 2 MAG 1. Tim Hortons Pre security 127 $109, White Spot Pre security 424 $156, Starbucks Pre security 41 $ 37, Airside Post security 150 $101,000 Retail/Duty Free Package Two: # Concession Location Area m2 MAG 1. Retail/Duty Free Pre Security 45 $ 40, Retail/Duty Free Post Security 135 $145,000 The successful Proponent(s) will be responsible for paying such MAG to the Authority or a percentage of gross revenue, whichever is greater (or as proposed and accepted). The MAG will be escalated annually based on expected Cost of Living adjustment of 2.0% annually. The MAG may be bid up, but any proposed MAG lower than the minimum MAG indicated will not be accepted. Percentage of Gross Revenue The percentage of gross revenue is due and payable when revenues exceed the minimum annual guarantee for each location (whichever is greater). Food and Beverage Package One: The minimum acceptable percentage of gross revenues for branded food and beverage is 12%. Such percentage may be bid up for any location. Retail/Duty Free Package Two: The minimum acceptable percentage of gross revenues for retail is 15%; for duty free the minimum acceptable percentage of gross revenue is 25%. The percentage of gross revenue may be bid up. If the Proponent proposes duty paid retail only, it must accept offering discounts on traditional duty free products such as tobacco, liquor, perfume, and cosmetics. Key Upfront Money There is no requirement for a specified upfront or key money to be paid; however, such key upfront money will be considered when evaluating the financial proposals. Page 9 of 46

10 Capital Recovery Fee A capital recovery fee is required annually to reimburse the Authority for the cost of investing in the branded concessions pre security as outlined below. This does not include the cost of the new construction required. Also, the cost of the Authority providing a grease interceptor and venting must be included in the Capital Recovery Fee and payable over the first year of the Concession Agreement. Tim Hortons and White Spot were built out in 2007 at a cost of $1.7 million dollars amortized over a ten year period and are ready for turn key operation. The Proponent must compensate the Authority for the remaining five year amortization of $170,900 for Tim Horton s and $570,800 for White Spot for the cost of the build out of these facilities. The Starbucks location replaced the former Capital Brew location and opened on March 1, 2012 with a construction cost of $330,000 which will be amortized over a ten year period. The Proponent must compensate the Authority for $300,000 of the build out cost of this facility over the next ten (10) years as part of the concession financial offer. Capital Recovery Fee by Location for existing Food and Beverage Locations # Concession Capital Recovery Fee Amortized Years Annual Amount 1. Tim Hortons $170,900 5 $ 34, White Spot $570,800 5 $114, Starbucks $300, $ 30,000 TOTAL ANNUAL PAYMENT $178,340 Capital Recovery Fee for new Post Security Food and Beverage Location The Authority is providing a grease interceptor and venting and the costs for this must be reimbursed over the first year of the Concession Agreement. Grease Interceptor Architectural, Structural,and Civil Hard Costs Mechanical and Electrical Hard Costs $ 721 $10,000 Exhaust Fan & Duct Architectural, Structural,and Civil Hard Costs Mechanical and Electrical Hard Costs $3,500 $20,750 Subtotal Hard Costs $34,971 Overhead & Contingencies $8,576 TOTAL HARD COSTS $43,547 Architect, Engineer, and PM Fees $4,715 TOTAL PAYMENT OVER FIRST YEAR OF CONCESSION AGREEMENT $48,262 Page 10 of 46

11 Capital Investment in New Build Out Locations: The successful Proponent(s) will be expected to make a minimum capital investment of Twenty Five Hundred Dollars ($2,500) per square metre to finish its new build out space (Food and Beverage Location 4 and Retail Locations 1 and 2). Tenant must indicate its proposed capital investment in the Proposed Financial Offer (Schedule Nine) which shall be no less than One Thousand Dollars ($1,000) per square meter per location for commercial, kitchen, and/or storage space. These investments must be supported by invoices and produced on request of the Authority. Proposal Deposit The Proposal Deposit of $5,000 for each package must be submitted with the proposal. This Proposal Deposit fee is refundable to all but the successful Proponent(s) and will be returned to Respondents (except for the successful Proponent(s) whose will be applied to rent) once the Concession Agreement for the Location(s) is executed. Security Deposit or Performance Bond The successful Proponent(s) must be prepared to provide a Security Deposit or Performance Bond once the Concession Agreement is executed. The Security Deposit or Performance Bond will continue throughout the term of the Concession Agreement for the Location. The Security Deposit may be a bank guarantee, letter of credit or certified cheque in the amount of thirty per cent (30%) of the proposed first year annual MAG/rent as proposed by Awarded Proponent. The Security Deposit is due and payable prior to initiation of operations. A Performance Bond for the entire MAG may be used rather than the Security Deposit and must be received by the Authority prior to the commencement of operations and must be renewed annually for the life of the Concession Agreement. Refurbishment of Locations Tenant must refurbish all locations no less than every five (5) years for food and beverage locations and no less than every three and half (3.5) years for retail and submit cost documentation to substantiate Five Hundred Dollars ($500) per square metre. Additional Financial Responsibilities In addition to the financial offer and the capital investment and recovery, the successful Proponent will also be responsible for real property taxes, exclusive use area utilities, exclusive use area cleaning and maintenance costs, and any applicable permit and municipal business license requirements. 1.6 MINIMUM QUALIFICATIONS The Authority has established the following minimum qualifications that a Proponent must meet in order to be considered qualified: Experience The Proponent, including any partners, if any, must provide evidence that it has the necessary experience to fulfill the scope of the Authority s requirements in this RFP, and have the capacity to secure the franchises. Page 11 of 46

12 The Proponent must have a minimum of three years of continuous experience, within the past five years, in the ownership, development, delivery, and operation of a successful concession. (Schedule Four) Management and Operations The Proponent must submit a management and operations plan along with a planned organizational chart, list of proposed key management employees and their experience, and a summary of their operation plans pertinent to this Airport. Financial Capability The Proponent, including any partners, if any, must provide evidence of its ability to finance and undertake the monetary commitments that will be required to successfully lease, develop, construct, and operate the proposed concessions. Proponent should have capitalization funds that equal at least three months of projected sales per location. (Schedule Five) Conflict of Interest No employee or authorized representative of the Authority, the Province of British Columbia, or the Federal Government of Canada may have any direct or indirect interest in the Proponent, including, but not limited to any partners of the Proponent. Page 12 of 46

13 1.7 EVALUATION CRITERIA Proposals will be evaluated on the following criteria: Evaluation Criteria Experience Company s experience (3 years minimum) out of the past (5) years in providing food and beverage and/or retail services in high traffic locations (depending on proposal package submittal). International brands must indicate experience as a franchised known brand for the international branded opportunity. Regional Operators must indicate their experience in the region in which they have operated. Management and Operations Plan Proponent must submit a management and operation plan along with a planned organizational chart, list of proposed employees and their experience, and a summary of their operation plans pertinent to this Airport. Financial Ability The Proponent must provide proof of ability to fund the build out and ongoing operations as required; for example, a letter from the banking institution or funding organization or financial statements indicating availability of funds, and also provide three years of financial statements of its company. Concept and Design Considerations The Proponent must submit a layout with a front view of the proposed location design and an evaluation view of the location relative to the location within the Airport. Photographs or renderings of concession designs may be used to provide information on the proposed design of the location. Customer Service Include performance measurement criteria and related programs for each of the following areas: Customer Service, Quality Control. Ability to meet the Authority s Concession Goals Financial Offer Proponent must provide ten years projected revenue, and operating expenses by location for food and beverage; and seven years of projected revenue and operating expenses for retail/duty free. Points The Proposal with the highest financial offer or scores will not necessarily be accepted. The Authority reserves the right to accept the Proposal that it deems most advantageous for the Authority, and the right to reject any or all Proposals for any reason. The Authority will not be responsible for the costs of preparation and submission of Proposals. Page 13 of 46

14 2.0 PROPOSAL INFORMATION 2.1 DEADLINE DATE FOR RESPONSE TO RFP Responses to this RFP for Food and Beverage Package One and Retail/Duty Free Package Two for the Authority is due September 7, 2012 no later than 12:00 pm PDT. 2.2 PRE PROPOSAL MEETING A pre proposal meeting will be held at the Airport on June 21, 2012 at 1:00 pm in the Large Boardroom 2 nd Floor Air Terminal Building which will include a tour of the facilities. The purpose of the Pre Proposal meeting is to provide an opportunity for airport staff to provide information on the existing concessions, outline their expectations for the new concessions, review the expected terms of the RFP, the form of the Concession Agreement, the tenant guidelines, airport operating characteristics, as well as provide any other information the Proponent may need to submit a complete Proposal and respond to questions on site and in writing. 2.3 ISSUING OFFICE / AUTHORITY REPRESENTATIVE Victoria Airport Authority Electra Boulevard Sidney, BC V8L 5V4 Attention: Ian West, Director, Terminal Operations Phone: (250) E mail: ian.west@victoriaairport.com 2.4 INQUIRIES All inquiries and other communications relating to this RFP and any subsequent agreements are to be directed in writing only to the above named person, who is the Authority s Representative. Depending upon the nature of the inquiry, the Authority may respond to the inquirer in writing or if appropriate, issue a written addendum to the RFP to all Proponents. The Authority shall have no responsibility for and the Proponent agrees not to rely upon communications, representations or statements from any other person regarding this RFP, its subject matter or any subsequent Concession Agreement. Page 14 of 46

15 2.5 PROPOSAL SUBMISSION DETAILS The Proponent shall, before submitting its Proposal, thoroughly examine and assess the Proposal documents and the site, if desired. The Proponent must also be knowledgeable of all relevant laws, rules, notices, directives, standards, orders and regulations, licensing and permit requirements, labour market, and other circumstances, which may affect the Proposal. Submission of a Proposal constitutes a representation by the Proponent that it is familiar with and accepts all of the foregoing. The Proponent must submit one (1) original and four (4) identical copies of its completed Proposal including applicable appendices prior to the closing date, by hard copy to the offices or by courier to: Ian West Director, Terminal Operations Victoria Airport Authority Electra Blvd 2 nd Floor Administration Offices Sidney, BC V8L 5V4 The Proponent s Proposal must be signed by an authorized signatory of the Proponent. The proposal must note on the outside envelope whether the proposal is for Food and Beverage Package One or Retail/Duty Free Package Two. If submitting for both packages, note both packages. Proposals must be typewritten or computer generated. No hand written proposals will be accepted. Proposals sent by facsimile or will not be accepted; late or mis delivered Proposals may not be accepted. The Authority reserves the right to make additional copies of all or part of the Proponent s Proposal for internal use or for any other purpose required by law. Proposals will NOT be publicly opened. The Proponent will be advised of the results after evaluations of all Proposals received. The Authority reserves the right in its sole discretion to extend the closing date prior to the closing date and time, and will endeavour to notify the Proponent as soon as practically possible in the event of any extension of the closing date. Proposals received after the proposal deadline date will not be accepted. Page 15 of 46

16 2.6 KEY TARGET DATES Following are the Key Target Dates and Events with respect to this RFP process. Such dates are not guaranteed and may change based upon circumstances. A. Request for Proposals issued:... June 1, 2012 B. Pre Proposal Information Meeting:... June 21, 2012 C. Deadline for Questions:... August 3, 2012 D. Question Response Deadline:... August 13, 2012 E. Closing Date for Submission of Proposals:... September 7, 2012 F. Award to Successful Proponent(s) (if any):... October 16, 2012 G. Concession Agreements must be executed by... November 16, 2012 H. Food and Beverage Operation Commencement... December 11, 2012 I. Retail/Duty Free Operation Commencement... December 11, 2012 J. New Post Security Food and Beverage Opens/Concession Agreement Commences:... June 1, 2013 K. New Pre and Post Security Retail/Duty Free Opens/ Concession Agreement Commences:... Dec 1, 2013 This schedule may be subject to change without liability to the Authority. A more detailed description of phasing is in the Proposed Construction Schedule. (Appendix G). 2.7 PROPOSAL REQUIREMENTS Specific detailed requirements are contained in each of the following schedules. The Proponent must include within its Proposal, but is not limited to, the following: Schedule One Receipt Confirmation Form In order to receive any addenda, the Proponent is asked to complete the form and or courier it to the Authority at its earliest convenience. Schedule Two Submission Checklist This form is provided to assist Proponent to make sure all Schedules have been submitted. Schedule Three Company Profile The Proponent must list its company information including officer, board of directors members, affiliations, and/or partnerships contact information, address, telephone or cell phone numbers and information. Schedule Four Experience and References The Proponent must demonstrate its experience in operating in an airport or high traffic facility based upon commonly known industry standards for a minimum of three years. Proponents must indicate their experience with franchised brands in the region in which they have operated. Page 16 of 46

17 Schedule Five Financial Information The Proponent must provide proof of ability to fund the build out and ongoing operations as required; for example, a letter from the banking institution or funding organization or financial statements indicating availability of funds, and also provide three years of financial statements of its company. Schedule Six Management and Operations Plans Proponent must submit a management and operation plan along with a planned organizational chart, list of proposed employees and their experience, a summary of their operation plans pertinent to this Airport, and staffing to include the number of management and non management employees and the shifts to cover the operating hours of each location. Schedule Seven Design of Proposed Locations The Proponent must submit a layout with a front view of the proposed location design and an elevation view of the location relative to the location within the Airport. Photographs or renderings of concession designs may be used to provide information on the proposed design of the location. A proposed construction schedule must also be submitted. Schedule Eight Customer Service Plan Proponent must include performance measurement criteria and related programs for customer service and quality control. Schedule Nine Financial Offer The Proponent must detail its financial offering on each Package for each Location and provide a financial plan including expected gross revenue, all costs of operation and capital by year and location. Schedule Ten Proponents Declaration Proponents, at their cost, may be required to make an oral presentation to the Evaluation Committee. 2.8 PROPOSAL COSTS All costs and expenses with respect to the submission of a Proposal pursuant to this RFP shall be the sole responsibility of the Proponent and the Authority assumes no liability whatsoever for any Proponent costs and expenses. 2.9 OWNERSHIP All Proposals and supporting material will become the property of the Authority WITHDRAWAL OF PROPOSALS Proposals may be withdrawn by a Proponent up until the deadline date for submittals in the case of any submittal received prior to that date. Page 17 of 46

18 2.11 ADDENDUM The Authority may, at any time prior to the closing date and time, issue additional information, clarifications or modifications to the RFP by written addenda issued by the Authority s Representative or his/her designate only. The Authority will notify the Proponent who has completed and submitted the Receipt Confirmation Form (Schedule One) but it is the Proponent s sole responsibility to ensure they have received all addenda prior to submitting their Proposal OMISSIONS AND DISCREPANCIES If the Proponent is in doubt as to the meaning or interpretation of anything in the RFP, find any discrepancies in, or, find omissions from the RFP, the Proponent should immediately contact the Authority s Representative. The Proponent shall be solely responsible for any errors, omissions, discrepancies or misunderstandings resulting from the Proponent s failure to examine thoroughly the RFP and from the Proponent s failure to enquire further with the Authority. The Proponent must satisfy itself in all respects as to the risks and obligations to be undertaken under any Concession Agreement entered into, as a result of this RFP INTERPRETATION No oral interpretation of any RFP by anyone, whether or not employed by the Authority, shall be effective to alter or modify any of the provisions in the RFP. Every request for interpretation of the meaning of any of the requirements of the RFP shall be made in writing to the Authority s Representative only PARTNERING / STRATEGIC ALLIANCES The Proponent may partner with other third parties in order to fulfill all of the requirements set out in this RFP, provided that all partners, joint venturers and the like, sign the signatory page of the Proposal and any other documents as may, from time to time, be required by the Authority NO COLLUSION Except as specified within its Proposal, the Proponent declares that no other person, either natural or corporate, has or will have any interest or share, directly or indirectly, in this Proposal or in the proposed Concession Agreement, which may be awarded. There is no collusion or arrangement, formal or informal, between the Proponent and any other actual or prospective Proponent in connection with its Proposal submitted for this RFP; the Proponent has no knowledge of the contents of any other Proposal; and the Proponent has made no comparison of figures, agreement or arrangement, express or implied, with any other party in connection with the making of its Proposal, except as are declared within the Proposal. Page 18 of 46

19 2.16 DISCLOSURE OF INTEREST The Proponent is required to fully disclose in its Proposal: a) any relationship the Proponent may have with any employee, officer or director of the Authority; and b) the nature of that relationship. Failure to disclose, or false or insufficient disclosure of the nature and extent of any relationship the Proponent may have with any employee, officer or director of the Authority shall be grounds for immediate termination of any Concession Agreement with the Authority in the Authority s sole discretion without further liability or notice SELECTION PROCESS Following the closing date and time, it is the intention of the Authority to evaluate all Proposals received according to the evaluation criteria described in the RFP documents. The Authority further expressly reserves the right in its sole discretion to: a) clarify or request any additional information to properly evaluate any Proposal received without becoming obligated to offer the same opportunity to any or all other Proponents; b) negotiate with one or more Proponent concurrently prior to award without becoming obligated to offer the same opportunity to any or all other Proponents; c) waive any minor or technical non compliance by a Proponent with the requirements of this RFP without becoming obligated to waive any other non compliance by any other Proponent; and d) accept any Proposal(s) which in the Authority s opinion offers best overall value or are the most advantageous Proposal(s) for the Authority. The Authority shall not be bound by this RFP to accept any or all Proposals and may cancel this RFP in whole or in part at any time without any award or liability whatsoever RESERVED RIGHTS OF THE AUTHORITY The Authority reserves the right to request clarifications and/or additional information as is necessary to properly evaluate the proposal; negotiate with any Proponent or with another Proponent or Proponents concurrently. The Authority is not required to offer any modified terms to other Proponents. The Authority shall incur no liability to any Respondents as a result of such negotiations or modifications. The Authority reserves the right to cancel this RFP, to reject any or all proposals; to re advertise for proposals if necessary, to waive minor irregularities and formalities; and to accept the proposal which offers, in the Authority s sole judgment, the best overall value for the Authority. All expenses incurred by the Proponent will be solely at its own cost. Page 19 of 46

20 This RFP does not constitute an offer. No Concession Agreement shall result upon submission of Proposals. The Authority is not under obligation to enter into any Concession Agreements with anyone in connection with this RFP or responses received, nor to pay for any costs incurred in the preparation of proposals submitted in response to this RFP. The Authority will consider the past performance of the Proponent on other agreements in terms of quality of work and compliance with the terms and conditions of those agreements. The Authority may also utilize other available resources to determine the Proponent s record of past performance WAIVER OF NON COMPLIANCE Proposals which contain qualifying conditions or otherwise fail to conform to the instructions herein may be disqualified or rejected. The Authority may, however, in its sole discretion, retain, for its consideration, evaluation and potential award, Proposals which are nonconforming because they do not contain the content or form required by the instructions in this RFP or because the Proposal does not comply with the process for submission set out in the instructions in this RFP CONFIDENTIALITY Notwithstanding anything contained herein, the Proponent agrees that any information, whether delivered to the Proponent by the Authority, or whether retrieved by the Proponent by any other means, shall not be exploited and no direct or indirect disclosure made to any other party of said information without the prior, express written agreement of the Authority APPLICABLE LAW The laws and the Courts of British Columbia shall apply and have exclusive jurisdiction over this RFP and any subsequent Concession Agreement which may be awarded COMPLIANCE WITH LAWS The Proponent with whom the Authority chooses to enter into a Concession Agreement, if any, shall comply with all federal, provincial and local laws, regulations, requirements and orders applicable to the performance of any Concession Agreement which may result from this RFP process. Page 20 of 46

21 2.23 NO LIABILITY By submitting a Proposal, the Proponent agrees that in no event will the Proponent claim damages for any amount whatsoever for any cost incurred by the Proponent in preparing its Proposal or for matters relating to any agreement or matters concerning the competitive process, and, the Proponent, by submitting a Proposal, waives any claim for loss of profits if no Concession Agreement is made with the Proponent. Any information contained in this RFP and attachments is provided to assist the Proponent in the preparation and submission of its Proposal. The Authority assumes no responsibility for the use of this information for any other purpose CONSENT TO INVESTIGATION In order to allow the Authority to properly determine the qualifications and capabilities of a Proponent, the Authority reserves the right in its sole discretion to conduct such investigations of a Proponent s business experience, financial capability and business practices as it deems necessary and the Proponent agrees to permit and co operate with such investigations. Page 21 of 46

22 3.0 CONCESSION AGREEMENT INFORMATION 3.1 CONSENT TO INVESTIGATION In order to allow the Authority to properly determine the qualifications and capabilities of a Proponent, the Authority reserves the right in its sole discretion to conduct such investigations of a Proponent s business experience, financial capability and business practices as it deems necessary and the Proponent agrees to permit and co operate with such investigations. A Concession Agreement must be concluded with the Authority based on the proposed (or negotiated) Proposal no later than thirty (30) days from the official notification by the Authority of award to the successful Proponent(s) or the rights and privileges of this opportunity may be forfeited unless otherwise agreed to in writing by the Authority. Each Concession Agreement will become effective and binding on the date of execution by the Authority. Copies of the proposed Concession Agreement will soon be issued as an Addendum. General Requirements and Obligations The Authority s Obligation to Concessionaire are: Utility Access The Authority will provide access to utilities but the tenant will have to determine utility requirements and bring utilities from utility source to the Location. Basic Shell and Core Space Provided The Authority will provide basic shell and core space with access to utilities as may be available and required for the new post security location and tenant ready space for the pre security locations. Materials and Finishes All materials and finishes must be approved by the Authority prior to installation. The Concessionaire s Requirements are: Concessionaires will be held to the same standards of excellence as the Authority currently requires and as outlined in the Authority s Tenant Guidelines which will include standards to which the concessionaires must be held. Page 22 of 46

23 3.2 CONCESSION AGREEMENT NEGOTIATIONS The Authority intends to negotiate and conclude a Concession Agreement with the most qualified and responsible Proponent offering the best overall value and quality and most advantageous Proposal for a term of ten (10) years for food and beverage Package One with one two (2) year renewal option and seven (7) years for retail/duty free Package Two with one three (3) year renewal option. In the event a Proponent and the Authority fail to reach agreement, negotiations will be terminated by the Authority, without any compensation whatsoever payable to the Proponent. An alternate Proponent may then be invited to participate in the negotiation process. The process may be repeated as often as necessary. 3.3 REJECT AND RE NEGOTIATE The Authority may reject all Proposals received and re advertise for Proposals if necessary. Such cancellation of the RFP process does not preclude the Authority from subsequently meeting with any Proponent to negotiate a Concession Agreement that best suits the needs of the Authority. 3.4 NO CONTRACTUAL OBLIGATION The Authority shall not be obligated in any manner to any Proponent whatsoever until a written Concession Agreement has been negotiated and duly executed related to any Authority accepted Proposal. 3.5 CONCESSION AGREEMENT OFFER Any offer for the provision of concessions at the Airport shall be made in writing only by the Authority s President CEO. 3.6 REQUIRED COMPLIANCE The successful Proponent(s) must comply with all applicable provisions of any Federal, Provincial, or Municipal occupational health and safety codes, electrical and building codes, and rules of any government entities that have jurisdiction. All permits and licenses required to construct and operate a Concession at the Airport shall be obtained by the successful Proponent(s) at its own expense, and shall be maintained as required in the Concession Agreement throughout the term of the Concession Agreement. 3.7 EXCLUSIVITY The Authority will not enter into an exclusive Concession Agreement with any successful Proponent(s) during the term of the Concession Agreement. At any time, the Authority may at its own discretion enter into other Concession Agreements with other entities for food or retail concepts similar to those of the successful Proponent(s). It is understood and agreed that the Authority will discuss any plans with the existing successful Proponent(s) but cannot grant the right to any exclusivity to any individual successful Proponent(s). Page 23 of 46

24 SCHEDULE ONE RECEIPT CONFIRMATION FORM To receive any further distributed information about this Request for Proposal, please complete this form and it as soon as possible to: Anita Kardos Terminal Operations Officer COMPANY NAME: STREET ADDRESS: CITY: PROVINCE: POSTAL CODE: MAILING ADDRESS (IF DIFFERENT THAN ABOVE): FAX NUMBER: ( ) PHONE NUMBER: ( ) CONTACT PERSON: TITLE: E MAIL ADDRESS: Please send us any further correspondence about this Request for Proposal by: Courier Collect Courier Name and Account No.: E mail (default if no box checked) Pick up at Airport Administration Office PREPROPOSAL MEETING RSVP: Are you planning to attend Pre proposal meeting on June 21, 2012 at 1:00 PM? Yes How many in your party? No Page 24 of 46

25 SCHEDULE TWO SUBMISSION CHECKLIST Proponents are advised that Proposals which do not include all of the following documents will be considered incomplete and may be rejected. Documents to be Submitted Due Date Included? Schedule One Receipt Confirmation Form ** ASAP ** Schedule Three Company Profile September 7, 2012 Schedule Four Experience and References September 7, 2012 Schedule Five Financial Information September 7, 2012 Schedule Six Management and Operations Plan September 7, 2012 Schedule Seven Design of Proposed Locations September 7, 2012 Schedule Eight Customer Service Plan September 7, 2012 Schedule Nine Financial Offer(s) September 7, 2012 Schedule Ten Proponent s Declaration September 7, 2012 Proposal Deposit $5,000 September 7, 2012 Page 25 of 46

26 SCHEDULE THREE COMPANY PROFILE This document is intended to provide information on the capacity, skill, and experience of the Proponent. The Proponent may supplement information requested with additional sheets if required. Submitted to: Victoria Airport Authority Electra Blvd. Sidney, BC V8L 5V4 1. Company Information Company Name (full legal name): Name and Title of Contact Person: Address: Phone: Fax: E Mail: Website: 2. Legal Structure of Company: Year Established: Joint Venture: Corporation: Partnership: Registered: Sole Proprietor: Other: Names and Titles of Officers, Partners, Principal: Name: Title: 3. Company Organization Attach an organizational chart for the company as it currently exists. Indicate the number of personnel (at all levels) currently employed by the company: Are your employees represented by a union: Yes No Name of Bargaining Unit (if applicable): Page 26 of 46

27 List key management individuals in the organization. Identify both their general responsibilities and their duties as they relate to the proposed Concession Agreement(s). Name Position Responsibilities If this company is a subsidiary of another, provide the name and address of the parent: Parent: Related Business Nature: Address: Page 27 of 46

28 SCHEDULE FOUR EXPERIENCE AND REFERENCES Experience: Outline your company s experience (3 years minimum) out of the past five years in providing food and beverage and/or retail services in high traffic locations (depending on which package you are proposing). If proposing on both packages, provide experience in each area. You may attach up to three pages describing your experience in each category (maximum six pages if describing both). Year One Year Two Year Three References: Name: Company: Contact Person(s): Phone: E Mail: Name: Company: Contact Person(s): Phone: E Mail: Name: Company: Contact Person(s): Phone: E Mail: Note: Attach additional pages as required as noted above. Page 28 of 46

29 SCHEDULE FIVE FINANCIAL INFORMATION 1. Company Financial Information List annual revenue and net income by year: Annual Revenue Year Total Canadian Total Net Income Canadian Attach compiled, reviewed or audited financial statements for the last (3) years, , including Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Changes in Financial Position (Cash Flow). Attach the most recent interim/management financial statements with comparable balances for the same periods (if different from those already provided). 2. Financial References: a. Bank Name: Location: Contact Person(s): Phone: Fax: E Mail: b. Bonding Company: Location: Contact Person(s): Phone: Fax: E Mail: c. Insurance Company: Location: Contact Person(s): Phone: Fax: E Mail: Page 29 of 46

30 SCHEDULE SIX MANAGEMENT AND OPERATIONS PLAN Proponents must provide a description of the management team and operational plans that the proponent plans to utilize. The management plan shall include the following: List key management staff. Indicate whether or not these individuals currently have a position within your organization. Describe your management policies and procedures and the approach you will take specific to this airport. Key Management Staff Position Name Responsibilities Current Position? Y/N Page 30 of 46

31 SCHEDULE SEVEN DESIGN OF PROPOSED LOCATIONS Proponents to this RFP must indicate their proposed design and layout in both narrative and by pictures and/or drawings (elevations) indicating the front view of the proposed concept and the side view with descriptions of the materials to be used in the build out for either/or packages proposing on. Please respond to the following: 1. Proponents are required to submit concept drawings/plans, pictures and/or drawings for the Premises as part of their proposal including the following: Preliminary dimensioned space plan Concept elevation renderings showing perspectives of the proposed storefront design including signage Preliminary cost estimate Proposed design, construction and installation schedule 2. Explain how you plan to maintain the quality of the Location(s). 3. Describe the materials to be used in your Location and how they relate to the appropriate theme for Victoria International Airport in relation to Victoria and Vancouver Island. 4. Please provide your construction timetable based on a finish of no later than ninety (90) days from turn over date of the subject space. Page 31 of 46

32 SCHEDULE EIGHT CUSTOMER SERVICE PLAN Include performance measurement criteria and related programs for each of the following areas: Customer Service Provide an outline of the proposed staffing levels and hours of operation in each location. Provide a detailed outline of the customer service program for the concessions including a description of your approach to serving customers along with any unique aspects of Proponent s customer service philosophy. Provide a detailed outline of the operational and customer service related training programs that will be delivered to all staff including training to provide service to customers with disabilities. Provide information about Marketing Programs, Employee Training Programs, and Employee Policy Manuals. Describe the program the Proponent will utilize to monitor customer satisfaction. Describe the Proponent s plans for obtaining customer feedback and keeping the Authority informed about customer comments and the corrective actions taken. Note: Official Languages Act is applicable at the Victoria International Airport and successful Proponent(s) will be required to comply with the Official Languages Act and Regulations. Quality Control Describe the Proponent s quality control program(s) that will be implemented for the concessions and how the Proponent will ensure that those controls are maintained and deficiencies are addressed. Please include any inspection forms and performance measuring systems. Page 32 of 46

33 SCHEDULE NINE FINANCIAL OFFER(s) Please provide a schedule for projected revenue and operating costs for the package(s) for which you are proposing as part of your financial offer. FINANCIAL PROPOSAL FOR FOOD and BEVERAGE PACKAGE ONE The acceptable Minimum Annual Guarantee and percentage of gross revenue per Location is indicated on the form that follows; however, a higher offer may be proposed. Fill in your financial offer for the Minimum Annual Guarantee (MAG), percentage of gross revenue, capital investment and upfront/key payment money (if offered) in dollar amounts in the spaces provided on the form below with the offers signed by an authorized company officer. FINANCIAL PROPOSAL FOR RETAIL/DUTY FREE PACKAGE TWO The acceptable Minimum Annual Guarantee and percentage of gross revenue per Location is indicated on the form that follows; however, a higher offer may be proposed. Fill in your financial offer for the Minimum Annual Guarantee (MAG), percentage of gross revenue, capital investment and upfront/key payment money (if offered) in dollar amounts in the spaces provided on the form below with the offers signed by an authorized company officer. Note: Proponents have an option to offer retail and duty paid rather than retail and duty free as long as discounts are provided that would equal prices in a duty free store on specified products that are usually found in duty free stores such as tobacco, perfume, liquor,and cosmetics. If this option is taken, you may list the percentages for retail and for these product categories separately, or offer one percentage for both retail and duty paid. If Proponent is offering retail and duty free, then note the percentages separately for retail and duty free. Page 33 of 46

34 FINANCIAL PROPOSAL FORM TO: VICTORIA AIRPORT AUTHORITY Food and Beverage Package One LOCATION Tim Hortons White Spot Starbucks New Post Security TERM & RENEWALS 10 years 1 x 2 10 years 1 x 2 10 years 1 x 2 10 years 1 x 2 MINIMUM ACCEPTABLE ANNUAL GUARANTEE PROPOSED MINIMUM ANNUAL GUARANTEE ( MAG ) MINIMUM ACCEPTABLE PERCENTAGE OF GROSS REVENUE % $109,000 $ 12% $156,000 $ 12% $37,000 $ 12% $101,000 $ 12% PROPOSED PERCENTAGE OF GROSS REVENUE % Rent payable is the greater of MAG or Percentage of Gross Revenue; and the MAG will increase each year by 2.0% in each lease year. Capital Investment (minimum $250/Square Foot, $2500/m 2 ) for new location. LOCATION AMOUNT New Post Security Food & Beverage (148 m 2 ) $ KEY UPFRONT MONEY (if any) $ COMPANY NAME: Date CORPORATE OFFICIAL S NAME: Authorized Signatory Page 34 of 46

35 Financial Proposal Form To: Victoria Airport Authority Retail/Duty Free Package Two Note: Proposed percentage of gross revenue must be allocated for retail and duty free if offering duty free; if not, it must be allocated to retail (but discounts must be taken on duty free products as outlined previously, i.e. tobacco, liquor, perfumes, and cosmetics). LOCATION TERM & RENEWALS MINIMUM ACCEPTABLE ANNUAL GUARANTEE PROPOSED MINIMUM ANNUAL GUARANTEE ( MAG ) MINIMUM ACCEPTABLE PERCENTAGE OF GROSS REVENUE % PROPOSED PERCENTAGE OF GROSS REVENUE % New Pre Security Retail/Duty Free 7 years 1 x 3 $ 40,000 $ 15% Retail 25% Duty Free New Post Security Retail/Duty Free 7 years 1 x 3 $145,000 $ 15% Retail 25% Duty Free Capital Investment (Minimum $250/Square Foot, $2500/m 2) for new locations. LOCATION AMOUNT New Pre Security Retail/Duty Free (45 m 2 ) $ New Post Security Retail/Duty Free (135 m 2 ) $ KEY UPFRONT MONEY (if any) $ Rent payable is the greater of MAG and Percentage of Gross; and the MAG will increase each year by 2.0% in each lease year. COMPANY NAME: CORPORATE OFFICIAL S NAME: Date Authorized Signatory Page 35 of 46

36 SCHEDULE TEN PROPONENT S DECLARATION The Proponent confirms it has obtained and carefully examined all documents comprising this Request for Proposal (RFP) including all addenda issued by the Victoria Airport Authority (Authority). The Proponent, having reviewed all of the RFP, hereby undertakes and agrees to offer to the Authority to supply the services as described in the RFP. Except as specified within its Proposal, the Proponent declares that no other person, either natural or corporate, has or will have any interest or share, directly or indirectly, in this Proposal or in the proposed Concession Agreement which may be awarded. There is no collusion or arrangement, formal or informal, between the Proponent and any other actual or prospective Proponents in connection with Proposals submitted for this RFP; the Proponent has no knowledge of the contents of any other Proposal; and the Proponent has made no comparison of figures, Concession Agreement or arrangement, express or implied, with any other party in connection with the making of its Proposal, except as are declared within the Proposal. The Proponent hereby declares that it has no relationship with any employee, officer or director of the Authority. EXECUTED THIS DAY OF, 2012 AT IN THE PROVINCE OF BRITISH COLUMBIA. LEGAL SEAL OF CORPORATION (IF REQUIRED) WITNESS SIGNATURE WITNESS NAME ADDRESS CITY, PROVINCE, POSTAL CODE PROPONENT AUTHORIZED SIGNATURE NAME OF PROPONENT SIGNING OFFICER LEGAL NAME OF PROPONENT ADDRESS OF PROPONENT CITY, PROVINCE, POSTAL CODE CONTACT TELEPHONE NUMBER CONTACT FAX NUMBER E MAIL ADDRESS Page 36 of 46

37 APPENDIX A LAYOUT OF AIRPORT TERMINAL Page 37 of 46

38 APPENDIX B LAYOUT OF EXISTING CONCESSIONS Page 38 of 46

39 APPENDIX C LAYOUT OF FUTURE CONCESSIONS Page 39 of 46

40 APPENDIX D CONCESSION ACTIVITY STATISTICS (in CAD) Category Gross Sales Food and Beverage $4,148,926 $3,976,031 $3,718,472 $3,426,645 Tim Hortons $1,140,142 $1,111,370 $1,002,814 $970,391 White Spot $1,633,969 $1,596,731 $1,532,509 $1,374,736 Capital Brew (now Starbucks) $293,521 $273,006 $263,411 $238,887 Airside Cafe $1,060,858 $971,826 $903,416 $831,235 Services (Catering/Vending) $20,436 $23,098 $16,322 $11,396 Retail/Duty Free $1,767,115 $1,827,335 $1,874,286 $1,968,341 Pre Security Duty Free $106,319 $107,710 $108,680 $118,120 Pre Security Retail $1,274,148 $1,370,227 $1,432,487 $1,486,625 Post Security Duty Free $32,062 $22,947 $15,861 $10,078 Post Security Retail $354,586 $326,451 $317,258 $353,518 TOTAL $5,916,041 $5,803,366 $5,592,758 $5,394,986 Category Gross Sales by Enplaned Passenger Food and Beverage $5.59 $5.25 $4.84 $4.44 Services (Catering/Vending) $0.03 $0.03 $0.02 $0.02 Retail $2.20 $2.25 $2.28 $2.39 Duty Free $0.19 $0.17 $0.16 $0.16 TOTAL $7.98 $7.70 $7.30 $7.01 Disclaimer of Liability: The Authority does not warrant or guarantee the statistics provided and assumes no responsibility or liability whether direct or indirect, as to the accuracy or quality of the statistics, nor for any consequence of their use. Proponents shall seek independent advice where they deem it desirable or necessary in order to use the forecasts. Page 40 of 46

41 APPENDIX E PASSENGER ACTIVITY AND MARKET INFORMATION Historical Enplaned Passenger Activity Year Enplanements Domestic 640, , , , ,166 Transborder 91, , , , ,527 International 8,579 4,878 7,188 11,414 14,220 Total 740, , , , ,913 Historical Total E/D (enplaned & deplaned) Passengers by Sector ( ) 1,800 1,600 International Transborder Domestic 6.6% 3.8% -0.4% -1.2% -1.0% 1, % 5.4% E&D Passengers (Thousands) 1,200 1, % -1.9% -4.4% 1.7% -4.8% 7.3% 5.7% Forecasts of E/D Passengers at Victoria by Market (Source: InterVISTAS) Year Domestic Transborder International Total ,217, ,906 28,328 1,499, ,230, ,000 31,000 1,526, ,264, ,000 36,000 1,574, ,304, ,000 41,000 1,628, ,342, ,000 46,000 1,680, ,375, ,000 50,000 1,726, ,543, ,000 76,000 1,988,000 Annual Average Growth Rate % 4.4% 9.4% 1.7% % 3.4% 16.1% 3.1% % 3.3% 13.9% 3.4% % 3.2% 12.2% 3.2% % 3.1% 8.7% 2.7% % 4.2% 8.7% 2.9% Page 41 of 46

42 Hourly Passenger Departures Profile August Peak 60 minutes = 08:30-09:30; 370 passengers Hourly Passengers :00-06:00 06:00-07:00 07:00-08:00 08:00-09:00 09:00-10:00 10:00-11:00 11:00-12:00 12:00-13:00 13:00-14:00 14:00-15:00 15:00-16:00 16:00-17:00 17:00-18:00 18:00-19:00 19:00-20:00 20:00-21:00 21:00-22:00 22:00-23:00 23:00-00:00 Hourly Passenger Arrivals Profile August 2011 (Source: OAG Schedule Data) Peak 60 minutes = 18:30-19:30; 400 passengers 350 Hourly Passengers :00-06:00 06:00-07:00 07:00-08:00 08:00-09:00 09:00-10:00 10:00-11:00 11:00-12:00 12:00-13:00 13:00-14:00 14:00-15:00 15:00-16:00 16:00-17:00 17:00-18:00 18:00-19:00 19:00-20:00 20:00-21:00 21:00-22:00 22:00-23:00 23:00-00:00 Page 42 of 46

43 Traffic Seasonality Historically, the Airport experiences its highest traffic level in the summer (August) and its lowest traffic level in the winter (February). Airline Operations WestJet and Air Canada are the largest carriers providing 81% of the seat capacity. Alaska Airlines is the third and United, Pacific Coastal, our Charters and other scheduled small carriers make up the rest. Scheduled Routes from Victoria Domestic: Vancouver, Abbotsford, Nanaimo, Kelowna, Calgary, Edmonton, Toronto. Transborder: Seattle and San Francisco. Las Vegas, Honolulu, and Phoenix. International: Mexico (Cancun and Puerto Vallarta) seasonally. Future Target Markets Domestic: Winnipeg, Ottawa Transborder: Los Angeles, Palm Springs, Denver, Salt Lake City Sunspot: Cabo, Mazatlan, Maui Disclaimer of Liability: The Authority does not warrant or guarantee the statistics provided and assumes no responsibility or liability whether direct or indirect, as to the accuracy or quality of the statistics, nor for any consequence of their use. Note: A variety of additional information about Victoria International Airport can be found on line at Page 43 of 46

44 APPENDIX F PASSENGER DEMOGRAPHICS GENDER Male 46% Female 54% PURPOSE OF TRAVEL Business 35% Leisure 65% NUMBER OF RETURN TRIPS IN % % % % 21 or more 6% AGE % % % % % % % 76+ 3% TIME PRIOR TO DEPARTURE Less than 30 min 1% min 6% % 1h 1h15 27% 1h15 1h30 18% 1h30 2h 20% More than 2h 10% RESIDENCY British Columbia 56% Victoria/Saanich Peninsula 45% Other Vancouver Island 1% Other BC 10% Other Canada 32% Calgary 8% Edmonton 4% Toronto 2% Ottawa 2% Winnipeg 1% Other 15% United States 8% International 4% CONNECTION RATE AT ANOTHER AIRPORT AND TOP CONNECTING AIRPORTS Vancouver, Seattle, Calgary, Toronto, Edmonton, Kelowna, Other 60% Page 44 of 46

45 APPENDIX G PROPOSED CONSTRUCTION SCHEDULE Page 45 of 46

46 Page 46 of 46