HomeMy WebLinkAbout2017-11-07; City Council; Resolution 2017-209RESOLUTION NO. 2017-209
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA AUTHORIZING THE RELEASE OF A REQUEST FOR PROPOSALS
FOR LEASING THE PROPERTY LOCATED AT 1775 DOVE LANE, COMMONLY
KNOWN AS THE DOVE LIBRARY CAFE
WHEREAS, the City of Carlsbad issued a Request for Proposals on July 10, 2015 seeking
proposals to manage and operate the Dove Library Cafe ("Cafe"), and the city received no responses
to the RFP; and
WHEREAS, the City of Carlsbad issued a second Request for Proposals ("RFP") on July 12, 2016
seeking proposals to manage and operate the Cafe and the city received no viable responses; and
WHEREAS, the city hired a restaurant consultant to review the Cafe facility and provide
guidance on appropriate steps the city should take in order to successfully lease and operate the Cafe,
which included the recommendation of including a tenant improvement budget in any future Request
for Proposals; and
WHEREAS, the city desires to re-issue a Request For Proposals for leasing the Cafe; and
WHEREAS, the city is recommending that the Request For Proposals include a city-funded offer
of a tenant improvement budget of up to $80,000.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. The above recitations are true and correct.
2. City staff is hereby authorized to release a Request For Proposals, attached hereto as
Attachment A, for leasing the property located at 1775 Dove Lane, commonly known as the
Dove Library Cafe.
November 7, 2017 Item #3 Page 3 of 29
3. City staff is hereby authorized to include a city-funded offer of a tenant improvement
budget of up to $80,000 within the Request For Proposals, with said budget funded from
the Library and Cultural Arts Department's current fiscal year operating budget in the
General Fund.
4. City staff is directed to return to the City Council with a recommended tenant with whom
the city should exclusively negotiate terms of a new lease agreement.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City of Carlsbad on the 7th day
of November 2017, by the following vote, to wit:
AYES: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard.
NOES: None.
ABSENT: None.
ATTEST:
( i0fru'D-1<'rrL~ F3-
BARBARA ENGLESON, CITY CLERK I
{SEAL)
November 7, 2017 Item #3 Page 4 of 29
Table of Contents
Section Page
I. INTRODUCTION 1
II. BACKGROUND AND PROPERTY DESCRIPTION 1
Background 1
Average Library Attendance 2
Property Description 2
Tenant Improvement Budget 3
Site Map 3
Adjacent Uses 3
Hours of Operation 4
Ill. SELECTION PROCESS 4
Selection Process 4
Submittal Requirements 4
Procedure/Schedule 5
Evaluation of Proposals 6
Questions 6
Site Tours 7
Selection Criteria 7
Offer to Exclusively Negotiate 7
IV. SPECIAL CONDITIONS 7
Reservations 7
Public Record 7
Right to Cancel 8
Additional Information 8
Conflict of Interest 8
Change of Ownership 8
Scope Changes 8
Proprietary Information 8
Responsive Materials Ownership 8
Best Value Selection 9
Lease Award 9
V. COMPLIANCE WITH PREVAILING WAGE LAWS 9
VI. CONCLUSION 10
Conclusion 10
Attachment A 11
Attachment B 12
Attachment C 13
Attachment D 14
November 7, 2017 Item #3 Page 6 of 29
I. INTRODUCTION
The City of Carlsbad ("City") is seeking proposals from qualified respondents interested
in operating and managing the Dove Library Cafe commercial space -designated as a
food & beverage services facility -that is available at the Carlsbad City Library ("Library")
on Dove Lane. The objective of this Request for Proposals ("RFP") solicitation is to
identify the most qualified, responsive and responsible proposer who can provide the
most sensible solutions to the occupation, operation and management of this food &
beverage services facility.
11. BACKGROUND AND PROPERTY DESCRIPTION
Background
The Dove Library campus recently underwent a $6.3 million dollar renovation project
and is located at 1775 Dove Lane, Carlsbad, CA 92011. Renovations at the Dove Library
campus focused on enhancing the location as a community gathering space, including
creating a "living room" feel by adding seating areas for patrons. Additionally, a new
patio and cafe (the subject of this RFP) with expanded food and drink options and a
redesigned courtyard were also a part of the renovation, as well as a remodel of the
Ruby G. Schulman Auditorium.
As part of the renovation project, the library developed a shell space for a cafe that
encompasses approximately 700 square feet with direct interior access to the Library
lobby and exterior access from the Library courtyard. Improvements to the courtyard
and cafe space created a new gathering place for the community that both enhance
existing service offerings and create opportunities for the spaces to become
destinations on their own merits. The courtyard improvements introduced new design
features, landscaping, seating, furniture, lighting, and sound capabilities to the space.
The Library provides a range of library services over 355 days a year (closed only 10 days
per year). The facility also includes an art gallery, an active public meeting room, and a
215 seat auditorium. Detailed below are hours of operation and usage data for each
space. The cafe will be accessible to patrons visiting the library and gallery, attending
cultural programs, meetings and events in the courtyard. It will likely be visited by some
of the surrounding residential/ commercial space residents and employees.
Current Library policies permit food and beverages within the Library. The Library is
seeking a cafe menu that focuses on foods that require primarily warming, cooling or
finishing on site, i.e., soups, salads, sandwiches, pastries, coffee and juices -as opposed
to foods that need to be fully cooked. Baking and microwaving is acceptable for the
purpose of heating foods or beverages provided in a manner that is suitable for the
improved space. The cafe may also become the city's preferred or required caterer to
provide catering services for public and private auditorium, gallery, meeting room or
courtyard events.
1
November 7, 2017 Item #3 Page 7 of 29
Average Library Attendance:
Hours of
Daily Visitors Average Hours Open Operation
Sunday 524 4 1-5pm
Monday 1224 12 9am-9pm
Tuesday 1179 12 9am-9pm
Wednesday 1228 12 9am-9pm
Thursday 1131 12 9am-9pm
Friday 921 8 9am-5pm
Saturday 945 8 9am-5pm
Daily Staff
Mon -Thurs 60
Friday 38
Saturday 28
Sunday 20
Average daily visitors to gallery 50
#of
Annual -Meetings /Events Events Attendance
Annual auditorium use 287 29,096
Annual meeting room use 339 13,384
Property Description
The cafe shell space itself is approximately 700 square feet with the ability to utilize the
outdoor seating situated in the adjoining courtyard. The cafe will have its own separate
entrance from the exterior courtyard that is designed to allow the cafe to operate
outside of normal library hours. There is also an interior entrance between the cafe
and Library entry lobby. There is no additional on-site storage for cafe operations
beyond the space within the cafe itself. The cafe shell space is currently outfitted with a
grease interceptor, HVAC penetration, two floor sinks, utility stubs, and a water heater.
The City will provide:
• Up to $80,000 in a tenant improvement budget (see below)
• Enclosed interior floor space measuring approximately 700 square feet
• Stub-outs for electrical, plumbing, ventilation, and data/phone*
• Door locks and keys for cafe space
• Shared-use central trash and recycling bins behind the library
• Shared-use trash and recycling receptacles in the library and courtyard.
2 November 7, 2017 Item #3 Page 8 of 29
*Note: Heating, air conditioning, electrical and water utilities will be paid by the Library
and included in the total lease amount charged to the tenant.
The tenant will provide:*
• All cafe furniture and casework (counters, cases, tables, chairs, storage, etc.)
• Menu board
• All professional equipment and installation
• All supplies
• Security for cash handling operations (safe, register, cash drawer, etc.)
• All necessary permits for improving and for the operation of a public cafe
• Interior signage for the cafe
• Trash and recycling receptacles inside the cafe
*Note: The cafe is part of the Library as a whole and decor must complement the
entire building. Therefore, all signage and decor design must be approved by the
City.
Tenant Improvement Budget
The City has conducted a cost estimate to build out the 700 SF cafe shell space, and the
City anticipates the tenant improvements for the cafe to be approximately $100,000.
The City is authorized to contribute up to $80,000 total towards the tenant
improvement budget. The respondent will be expected to assist the City in cost
containment by designing a work plan and materials that would make the most effective
use of available dollars, providing the highest quality and most effective cafe space. The
City will negotiate with the selected respondent for a not-to-exceed price based on the
submitted fee and tenant improvement proposal.
Site Map
For an aerial view of the parcel, please see the attached Site map in Attachment A.
Adjacent Uses
The Library is conveniently located within the Plaza Paseo Real shopping center which
includes a cinema, post office, major supermarket chain store, bank and several other
businesses and eateries. The Library is also surrounded by several residential
developments within accessible walking distance. The cross roads are El Camino Real
and Aviara Parkway, which serve as two main arteries for the local community.
3 November 7, 2017 Item #3 Page 9 of 29
Hours of Operation
The Library is open 355 days per year, 7 days per week.
• Monday through Thursday: 9 am to 9 pm
• Friday and Saturday: 9 am to 5 pm
• Sunday: 1 pm to 5 pm
The Library expects the tenant to generally be open during the Library's business hours,
but will consider an expanded or contracted schedule to accommodate business needs
and Library special events.
Ill. SELECTION PROCESS
Respondent selection is anticipated to occur through the process outlined herein, the
described selection criteria, and submittal requirements.
Selection Process
The City is seeking proposals, including qualifications, from individuals and/or entities
with restaurant or commercial retail experience and the financial capacity to lease,
improve, and operate the cafe.
Submittal Requirements
Respondents shall provide the City with the information requested below, with the
exception of the Financial Capacity materials, of which two (2) copies are to be
submitted under separate cover on a confidential basis.
(1) A statement that the signatory is authorized to submit the proposal on behalf of
each listed member of Respondent's team;
(2) A statement that the proposal will remain in effect for a minimum of 180 days
from the date of submittal and may be extended at the mutual agreement of
both the City and Respondent;
(3) Leasing Team Entity and Qualifications: A description of the type of entity that
will develop the cafe (e.g. corporation, LLC, joint venture, etc.), list of other
owners of interest that may provide equity to the ownership entity, and the
estimated percentage of ownership of each.
a. Legal name and principal officers of each member of the
Respondent's team.
4 November 7, 2017 Item #3 Page 10 of 29
b. Description of each principals previous relevant experience in
leasing similar property and operating a similar use, and obtaining
financing commitments, detailing financing source, amounts
committed, etc.;
(4) Project Description: Describe the proposed food, beverage and meal services to
be offered in the cafe space, along with the associated tenant improvements
proposed to deliver said services. Indicate the estimated tenant improvement
budget using the Capital Expenditure Worksheet provided in Attachment B.
(5) Schedule: Respondents will provide a development schedule, from authorization
to negotiate through certificate of occupancy. If alternate financial structures
are proposed, please include schedule(s) specific to the alternate type(s) of
financing being proposed. Proposals must also include an estimated certificate
of occupancy date.
(6) Financial Capacity: provided on a confidential basis, to the extent allowed by law.
(7) Proposed rental rate. If respondent elects to utilize the City's tenant
improvement budget in whole or in part, prevailing wage requirements under
California Labor Code section 1720 et seq. may apply. (Please refer to Section V
below.)
(8) Operating Expenditures. Respondents will provide estimates of ongoing staffing
and operating expenditures using the Operations Expenditure Worksheet
provided in Attachment C.
(9) Design Rendering. Respondents will provide a schematic drawing reflecting the
placement of millwork, tables, seating, appliances and other fixtures within the
designated cafe space, using the architectural drawing supplied as Attachment
D.
(10) Catering Capabilities. Respondents will provide a detailed explanation of catering
capabilities using off-site commercial kitchen facilities. Catering capabilities are
desirable to support a variety of Library & Cultural Arts meetings and events.
Procedure/Schedule
The procedure for selection is as follows:
1) Proposals shall be submitted to the City no later than 4:00 p.m. on December 14,
2017. Proposals and/or modifications received subsequent to the hour and date
specified will not be considered;
2) Following timely receipt, submissions will be reviewed by staff within 30-days of
the submittal date;
5 November 7, 2017 Item #3 Page 11 of 29
3) The most desirable and qualified Respondent(s) may be invited for an interview
and presentation of their proposal; and
4) Following review and analysis of the proposal(s), staff will recommend selection
of a tenant to negotiate a property lease agreement with the City.
Evaluation of Proposals
Following timely receipt, an evaluation of each submittal will be conducted by a
selection panel of city staff within 14-days. The evaluation will include all of the
requested information and will be scored according to the table below:
The fit of the proposed operation in regards to operation type 30 pts.
and effectiveness of proposed menu offerings;
Qualifications and experience of the Respondent in regards to 20 pts.
food services operations;
Demonstrated understanding of the Respondent's business plan 10 pts.
and operational methodology;
Proposer's demonstrated understanding of the potential 10 pts.
customer base and immediate area; and
Proposed financial and lease terms 30 pts.
Subtotal: 100 pts.
Oral Interview (if required) 50 pts.
Subtotal: 50 pts.
Total Possible Score 150 pts.
The most desirable and qualified Respondent(s) may be invited for an interview and
presentation of their proposal. The Oral Interview will cover the same topics as the RFP
evaluation and may include new topics that your firm may consider relevant. The
interview would be up to one (1) hour in length with 30 minutes for a presentation and
30 minutes for a question and answer session. The Respondent's performance in this
interview will be a significant factor in the overall evaluation. Following review and
analysis of the proposals and oral interviews, staff will recommend selection of a
Respondent to the City Council. In the event that a lease agreement cannot be reached
with the highest-ranking Respondent, the city will terminate negotiations and have the
option enter into lease negotiations with the next highest-ranking proposal.
Please note that the city reserves the right to take any or no action based on responses
to this Request for Proposal, including the acceptance or rejection of proposals.
Questions
Any questions you may have pertaining to this RFP shall be addressed to the City's Real
Estate Manager, Curtis M. Jackson, at curtis.jackson@carlsbadca.gov. Answers to
questions will be distributed simultaneously to all known prospective proposers who
6 November 7, 2017 Item #3 Page 12 of 29
have received the RFP. All questions must be in writing and no other officer, agent, or
employee of the City is authorized to provide official answers.
Site Tours
Site Tours are not mandatory; however, interested Respondents should contact Curtis
M. Jackson, Real Estate Manager, at curtis.jackson@carlsbadca.gov or 760-434-2836.
Selection Criteria
The focus of the selection process will be on the following issues:
1) Respondent's vision and plan for the Subject Property.
2) Relevant cafe operation experience.
3) Financial benefit to the City.
4) Rental rate, description and estimated tenant improvement budget, and other
applicable terms and conditions of a lease.
5) Financial ability of the Respondent to lease, improve and operate the Subject
Property as evidenced by on-going relationships with financing sources and/or
financial status.
6) Litigation history.
Offer to Exclusively Negotiate
Upon selection of a Respondent, the City will negotiate a property lease agreement
exclusively with the selected Respondent for a period of up to 60 days. By submitting a
proposal and qualifications to the City, the prospective tenant is also agreeing that the
City retains the right to modify or suspend all aspects of the selection and exclusive
negotiating process and to waive any defects as to form or content of the offering or
any responses that are received. Further, City shall have the right to reject any and all
proposals.
IV. SPECIAL CONDITIONS
Reservations
This RFP does not commit the City to award a lease, to defray any costs incurred in the
preparation of a proposal pursuant to this RFP, or to procure or contract for work.
Public Record
All proposals submitted in response to this RFP become the property of the City and are
public records and, as such, may be subject to public review. Financial capacity
statements, however, are provided on a confidential basis to the extent allowed by law.
7 November 7, 2017 Item #3 Page 13 of 29
Right to Cancel
The City reserves the right to revise or cancel, for any reason, in part or in its entirety,
this RFP, including but not limited to: selection schedule, submittal date, and submittal
requirements. If the City cancels or revises this RFP, all Respondents will be notified in
writing by the City.
Additional Information
The City reserves the right to request additional information and/or clarification from
any or all Respondents to this RFP.
Conflict of Interest
The Respondent, if selected, shall be required to file a Conflict of Interest Statement
with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict
of Interest Code.
Change of Ownership
For the term of the lease proposed, Respondent is precluded from a change of
ownership of more than twenty-five percent (25%} without the City's express written
consent. The City reserves the right to withhold consent for any reason. Assignment,
sublease, encumbrance or other transfers of the leasehold interest in the cafe is
expressly prohibited without prior written authorization from the City.
Scope Changes
All changes in proposal documents shall be through written addendum. Verbal
information obtained otherwise will not be considered in the award process. Proposal
submittals must acknowledge all addenda. Proposals failing to do so may be considered
as non-responsive by the City and eliminated from further consideration.
Proprietary Information
Any restrictions on the use of data contained within a proposal must be clearly stated in
the proposal itself. Proprietary information submitted in response to this RFP will be
handled in accordance with applicable city procurement regulations and the California
Public Records Act. If you have proprietary information, products or services, please
identify them in your proposal.
8 November 7, 2017 Item #3 Page 14 of 29
Responsive Materials Ownership
All materials submitted regarding this RFP become the property of the City. Responses may
be reviewed by any person after final selection has been made. The City has the right to use
any or all system ideas presented in reply to this request, subject to the limitations outlined
in proprietary information above. Disqualification of a Respondent does not eliminate this
right.
Best Value Selection
The Respondent selected will be based on the best value option for the City. The City is
under no obligation to award this project to the Respondent offering the most
advantageous financial position. Evaluation criteria expressed in the RFP shall be used in
the proposal evaluation process. In evaluating proposals, the City may consider the
qualifications of the Respondent and whether the proposals comply with the prescribed
requirements.
Lease Award
The award of the lease will be in accordance with, but not limited to, the results of the
City's evaluation. Final approval of selected Respondent and award of lease lies with the
City of Carlsbad City Council.
V. COMPLIANCE WITH PREVAILING WAGE LAWS
The Lease will require the Respondent to acknowledge and agree that: (a) any construction,
alteration, demolition, installation or repair work performed under the Lease constitutes
"public work" under California Prevailing Wage Law, including Labor Code sections 1720
through 1815, et seq. (the "PWL"), and will obligate Respondent to cause such work to be
performed as a "public work," including, but not limited to, the payment of applicable
prevailing wages to the all persons or entities subject to the PWL; (b) Respondent shall
cause all persons and/or entities performing "public work" under the Lease to comply with
all applicable provisions of the PWL; (c) City is not responsible for Respondent's failure to
comply with any applicable provisions of the PWL; (d) Respondent's alleged or actual
violations of the PWL shall constitute an event of default under the Lease; and (e)
Respondent shall defend and indemnify City and its officers, employees, council members
and agents from and against any and all claims, assessments, back-wages, penalties, change
orders, suits, liability, judgments, damages, proceedings, orders, directives, costs, including
reasonable attorneys' fees, arising from or relating to any actual or alleged violations of the
PWL, or other application of laws, ordinances or regulations, by any person or entity,
including but not limited to Lessee, performing construction, alteration, demolition,
installation, repair and/or any other type of work contemplated under the Lease.
9 November 7, 2017 Item #3 Page 15 of 29
VI. CONCLUSION
Conclusion
We appreciate your interest in the City of Carlsbad and look forward to your proposal
and qualifications for a lease of the cafe property for the delivery of food and beverage
services.
Submittal packages should be addressed to:
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Attn: Curtis M. Jackson, Real Estate Manager
Please return your response no later than 4:00 p.m., December 14, 2017.
10 November 7, 2017 Item #3 Page 16 of 29
Attachment B
Estimated Capital Expense Worksheet
CAPEX (Capital Investment Breakdown)
Description
Construction
HVAC
Electrical
Lights
Licenses/Permits
Other:
Infrastructure Sub-Total
Proprietor Equipment
Equipment*
Millwork Package
Signs
Dish/Bussing/Trash Area
Furniture
Small Wares
Other:
Proprietor Equipment Sub-Total
*Includes:
Cooktops
Ovens
Espresso Machine
Sinks
Prep Tables
Ice Machine
Refrigeration
Dish Machine
Storage (wet, dry)
Paper Storage
Flooring
Display Vending
Explanation
Varies depending on proprietor
Counter, cabinets, etc
Menus boards, graphics
Chairs, Tables, Stools
Plates, Silverware, Serving
12
Low High
$ -$ -
Low High
$ -$ -
November 7, 2017 Item #3 Page 18 of 29
Attachment C
Estimated Operations Expenditure Worksheet
Demographics & Sales
Description
Total Headcount
Capture Rate
Serves
# of Business Days
Daily Blended Avg Check
Projected Annual Sales
Monthly Sales
Annual Operating Costs
LABOR
Description
Payroll
Payroll Taxes, Work Comp
Labor Sub-Total
COGS (Cost of Good Sold)
Description
Food Cost
Beverage Cost
Retail Cost {other merch)
Paper & Disposables
Other:
COGS Sub-Total
OPEX (Operating Costs)
Description
Credit Card Fees/Banking
Linen, Laundry, Uniforms
Janitorial, Safety
Office Expenses, G&A
Marketing
Insurance
Licenses, Fees, Permits
Other:
Rent
OPEX Sub-Total
Explanation
Library visitors per day
% of visitors who will buy
Guests served per day {transactions)
Days open for business
Average Transaction Amt
Guests served * Avg Trans Amt* Days
Explanation
Based on 355 days open. Include hours, hourly
rates, staffing levels. Includes salary to yourself?
"
Explanation
Explanation
EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization)
Sales -Labor -COGS -OPEX
13
Estimates
1280
355
$ -
$
Estimates
$ -
Estimates
$ -
Estimates
$
Estimated
$
November 7, 2017 Item #3 Page 19 of 29
Attachment D
Architectural Drawings of Cafe
14 November 7, 2017 Item #3 Page 20 of 29