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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ACTION: APPROVED CONTINUED TO DATE SPECIFIC D DENIED D CONTINUED TO DATE UNKNOWN D CONTINUED D RETURNED TO STAFF D WITHDRAWN D OTHER-SEE MINUTES D AMENDED D REPORT RECEIVED D r-- Item#4-AB#22,341 July 12, 2016 Page 1 of 16 FISCAL IMPACT: Once an agreement is approved the lease will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. 2 Item#4-AB#22,341 July 12, 2016 Page 2 of 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. Item#4-AB#22,341 July 12, 2016 Page 3 of 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Item#4-AB#22,341 July 12, 2016 Page 6 of 16 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. 1 Item#4-AB#22,341 July 12, 2016 Page 7 of 16 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. 2 Item#4-AB#22,341 July 12, 2016 Page 8 of 16 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; 3 Item#4-AB#22,341 July 12, 2016 Page 9 of 16 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 4 Item#4-AB#22,341 July 12, 2016 Page 10 of 16 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. 5 Item#4-AB#22,341 July 12, 2016 Page 11 of 16 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. 6 Item#4-AB#22,341 July 12, 2016 Page 12 of 16 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 7 Item#4-AB#22,341 July 12, 2016 Page 13 of 16 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. 8 Item#4-AB#22,341 July 12, 2016 Page 14 of 16 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. 9 Item#4-AB#22,341 July 12, 2016 Page 15 of 16 -11210111111111111111 Item#4-AB#22,341 July 12, 2016 Page 16 of 16