HomeMy WebLinkAbout2016-07-12; City Council; 22341; Authorize issuance of request for proposals for lease of property located at Dove LibraryCITY OF CARLSBAD-AGENDA BILL 4
AB# 22 341 AUTHORIZE THE ISSUANCE OF A REQUEST FOR DEPT. DIRECTOR tJ[j.-
DATE. 7/12/16 PROPOSALS FOR THE LEASE OF PROPERTY LOCATED AT CITY ATTY. tf> DOVE LIBRARY DEPT. City Manager CITY MGR. tv'---
RECOMMENDED ACTION:
Adopt a Resolution authorizing city staff to issue a Request for Proposals for the lease of property
located at the 1775 Dove Lane, commonly known as the Dove Library Cafe.
ITEM EXPLANATION:
The Dove Library Cafe (11Cafe") is approximately 700 square feet in area and is located adjacent to the
courtyard & the entrance to the Dove Library. The city included the development of the cafe as part of
the overall Dove Library improvement project.
The Dove Library currently provides a range of library services to an average of 1,500 patrons daily.
The library also includes an art gallery with an estimated 700 weekly visits, an active public meeting
room, and a 215 seat auditorium that is used multiple times throughout the day. The city desires to
provide convenient catering and food services to the aforementioned library visitors. Additionally, the
Cafe will be accessible not only to library patrons and staff, but could be visited by some of the
surrounding residential/commercial space residents and employees as well.
The city issued a Request for Proposals (11RFP") on July 10, 2015, seeking proposals for a restaurant use
that received no responses. Subsequent to the close of the RFP, the city received an unsolicited
proposal to operate the cafe; however, the city and the prospective tenant were unable to reach an
agreement to occupy the Cafe.
Staff requests that the City Council authorize the issuance of a new RFP for the lease of the Cafe. Staff
is recommending the issuance of a new RFP as the recent completion of the facility may increase the
interest in the Cafe. Once proposals are received, staff will return to City Council with a recommended
party with whom the city should exclusively negotiate terms of a new lease agreement.
DEPARTMENT CONTACT: Curtis M. Jackson 760-434-2836 curtis.jackson@carlsbadca.gov
FOR CLERK USE. b( COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC D
DENIED D CONTINUED TO DATE UNKNOWN D
CONTINUED D RETURNED TO STAFF D
WITHDRAWN D OTHER-SEE MINUTES D
AMENDED D REPORT RECEIVED D
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Item#4-AB#22,341 July 12, 2016 Page 1 of 16
FISCAL IMPACT:
Once an agreement is approved the lease will generate monthly revenue at a competitive fair market
rate for the city which will be disclosed at the time of lease approval. In addition to the lease revenue,
the new use will generate additional sales tax revenue for the city.
ENVIRONMENTAL IMPACT:
This action is categorically exempt from the California Environmental Quality Act pursuant to CEQA
Guidelines section 15301 (leasing of existing public structures or facilities).
EXHIBITS:
1. Resolution authorizing city staff to issue a Request for Proposals for the lease of property
located at 1775 Dove Lane, commonly known as the Dove Library Café.
2. Draft Request for Proposals, Exhibit "A" to Resolution
3. Aerial site map of 1775 Dove Lane.
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RESOLUTION NO. 2016-143
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA AUTHORIZING THE ISSUANCE OF A REQUEST FOR
PROPOSALS FOR THE LEASE OF PROPERTY LOCATED AT 1775
DOVE LANE, COMMONLY KNOWN AS THE DOVE LIBRARY CAFE
WHEREAS, the City of Carlsbad issued a Request for Proposals ("RFP") on July 10, 2015
seeking proposals to manage and operate the Dove Library Cafe for restaurant purposes; and
WHEREAS, the city received no responses to the RFP; and
WHEREAS, the city desires to re-issue a RFP to solicit proposals from qualified food &
beverage service operators to enter into a lease to operate a cafe at the Dove Library.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows that:
1. The above recitations are true and correct.
2. City staff is hereby authorized to issue a new RFP, attached hereto as Exhibit A,
for the lease of the property located at 1775 Dove Lane, commonly known as the
Dove Library Cafe.
3. Staff is directed to return to City Council for authorization to exclusively
negotiate a lease agreement with the selected respondent to the RFP, as
recommended by staff.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 12th of July, 2016, by the following vote to wit:
AYES: Hall, Wood, Schumacher, Blackburn, Packard.
NOES: None.
ABSENT: None.
(SEAL)
Item#4-AB#22,341 July 12, 2016 Page 4 of 16
City of Carlsbad
REQUEST FOR PROPOSAL
For
Dove Library Food & Beverage Service Operation
PROPOSALS DUE PRIOR TO:
Tuesday, August 31, 2016 at 4:00 p.m. PST
SEND TO:
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Attn: Curtis M. Jackson, Real Estate Manager
The City of Carlsbad encourages the participation of minority and women-owned businesses
Item#4-AB#22,341 July 12, 2016 Page 5 of 16
Table of Contents
Section Page
I. INTRODUCTION 1
II. BACKGROUND AND PROPERTY DESCRIPTION 1
Background 1
Property Description 1
Site Map 1
Adjacent Uses 1
Hours of Operation 2
III. SELECTION PROCESS 3
Selection Process 3
Submittal Requirements 3
Procedure/Schedule 4
Evaluation of Proposals 5
Questions 6
Site Tours 6
Selection Criteria 6
Offer to Exclusively Negotiate 6
IV. SPECIAL CONDITIONS 6
Reservations 6
Public Record 7
Right to Cancel 7
Additional Information 7
Conflict of Interest 7
Change of Ownership 7
Scope Changes 7
Proprietary Information 7
Responsive Materials Ownership 8
Best Value Selection 8
Lease Award 8
V. COMPLIANCE WITH PREVAILING WAGE LAWS 8
VI. CONCLUSION 9
Conclusion 9
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I. INTRODUCTION
The City of Carlsbad ("city") is seeking proposals from qualified firms interested in
operating and managing commercial space - designated as a food & beverage services
facility - that is available at the newly remodeled Dove Library location. 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.
II. BACKGROUND AND PROPERTY DESCRIPTION
Background
The Dove Library ("Library"), which recently completed a $6.3 million dollar renovation
project, is located at 1775 Dove Lane, Carlsbad, CA 92011. Renovations at Dove Library
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
café, 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 added space for a café adjacent to the
entry courtyard that is approximately 700 square feet with direct interior and exterior
access. The intent for the courtyard and café was to create a new gathering space for
the community that will also support and compliment a variety of uses in surrounding
spaces and enhance our patron's experience. The café and courtyard also have the
potential to become their own destination. The modernization and redesign project also
included significant renovations for the Library courtyard, which serves as the gateway
to the Library and these locations. The courtyard improvements brought new design
features, landscaping, seating, furniture, lighting, and sound capabilities to the space.
The Library currently provides a range of library services to an average of 1,500 patrons
daily. The facility also includes an art gallery with an estimated 700 weekly visits, an
active public meeting room, and a 215 seat auditorium that is used multiple times
throughout the day. This café will be accessible to library patrons and staff, and will
likely be visited by some of the surrounding residential/ commercial space residents and
employees.
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The Library requires a 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 café may also become the city's preferred or required caterer
to provide catering services for public and private auditorium, gallery or courtyard
events.
Property Description
The café space itself will be approximately 700 square feet with the ability to utilize the
adjoining courtyard for outdoor seating. The café will have its own separate entrance
from the exterior courtyard and is designed to allow the café to operate outside of
normal library hours. There is also an interior entrance between the café and Library.
There is no additional storage outside of the identified café space. The space will be
designated as specified in Attachment A.
The Library will provide:
• Enclosed interior floor space measuring approximately 700 square feet
• Electrical, plumbing, ventilation, and data/phone stub outs*
• Courtyard furniture (tables, chairs, shading)
• Door locks and keys for café space
• All finishes for the area which complement the rest of the library
• Central trash and recycling bins behind the library for café use
• Trash and recycling receptacles in the library and courtyard.
*Note: Heating, air conditioning, electrical and water utilities will be paid by the Library
and included in the lease amount charged to the tenant.
The tenant will provide:*
• All café 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 the operation of a public café
• Signage for the café
• Trash and recycling receptacles for staff and patrons inside the café
*Note: The café 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.
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Site Map
For an aerial view of the parcel, please see the attached Site map in Attachment B.
Adjacent Uses
The Library is conveniently located next to a popular 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.
Hours of Operation
The Library is currently open on the days and times shown below. The Library expects
the tenant to generally be open during the Library's normal business hours, but will
allow an expanded or contracted schedule to accommodate business needs.
• Monday through Thursday: 9 am to 9 pm
• Friday and Saturday: 9 am to 5 pm
• Sunday: 1 pm to 5 pm
III. 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 café.
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;
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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 café (e.g. corporation, LLC, joint venture, etc.) and a 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.
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 use and tenant improvements proposed for
the café. Indicate the estimated tenant improvement budget.
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.
6) Financial Capacity: provided on a confidential basis, to the extent allowed by law.
7) Proposed rental rate. If rent credits or a below-market rental rate are proposed
to offset the cost of tenant improvements in whole or in part, prevailing wage
requirements under California Labor Code section 1720 et seq. may apply.
(Please refer to Section V below.)
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 Wednesday,
August 31, 2016. 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;
3) The most desirable and qualified Respondent(s) may be invited for an interview
and presentation of their proposal; and
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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 and
effectiveness of proposed menu offerings;
30 pts.
Qualifications and experience of the Respondent in regards to food
services operations;
20 pts.
Demonstrated understanding of the Respondent's business plan
and operational methodology;
10 pts.
Proposer's demonstrated understanding of the potential
customer base and immediate area; and
10 pts.
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 top three (3) Respondents may be invited to attend an oral interview. 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 an agreement cannot be reached with the highest-ranking
Respondent, the city will terminate negotiations and have the option enter into 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.
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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 proposers who 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 café operation experience.
3) Financial benefit to the City.
4) Rental rate, description of tenant improvements and other applicable terms and
conditions of a lease.
5) Financial ability of the Respondent to lease 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.
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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.
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 café 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
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Public Records Act. If you have proprietary information, products or services, please
identify them in your proposal.
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.
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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 café property for a restaurant use.
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., August 31, 2016.
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