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HomeMy WebLinkAbout2018-02-13; City Council; ; Adopt a Resolution authorizing city staff to negotiate a lease agreement with Lisa Martel to operate a cafe within the property located at 1775 Dove Lane, commonly knownFiscal Analysis Once a lease agreement is approved the city will generate monthly revenue at market rate for the City of Carlsbad's General Fund. The lease rate will be disclosed at the time of lease approval. Next Steps City staff and Mrs. Martel will commence negotiations on a lease agreement and return to City Council for approval of a lease agreement. Environmental Evaluation (CEQA) This action is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines section 15301 (leasing of existing public structures or facilities). Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the meeting date and time. Exhibits 1. City Council Resolution. February 13, 2018 Item #2 Page 2 of 4 RESOLUTION NO. 2018-015 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA AUTHORIZING CITY STAFF TO NEGOTIATE A LEASE AGREEMENT WITH LISA MARTEL TO OPERATE A CAFE WITHIN THE PROPERTY LOCATED AT 1775 DOVE LANE, COMMONLY KNOWN AS THE DOVE LIBRARY CAFE Exhibit 1 WHEREAS, on November 7, 2017, the City Council authorized the release of a RFP for the lease of the Dove Library cafe that included a city-funded offer of a tenant improvement budget of up to $80,000 by Resolution No. 2017-209; and WHEREAS, on December 14, 2017, the city received two formal proposals which were evaluated and scored by an internal selection committee; and WHEREAS, the selection committee scored each proposal using criteria including: Respondent's vision and plan for the property, experience and ability to perform, and financial benefit to the city; and WHEREAS, based on the final cumulative scores, the selection committee is recommending Lisa Martel as the prospective tenant. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That City of Carlsbad Real Estate Manager is authorized to enter into exclusive lease negotiations with Lisa Martel for a ninety day period for the property located at the Dove Library. 3. That staff will return to the City Council for approval of the negotiated lease agreement once negotiations have been completed or return to City Council for further direction. February 13, 2018 Item #2 Page 3 of 4 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 13th day of February, 2018, by the following vote, to wit: AYES: NOES: ABSENT: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. None. None. (SEAL) February 13, 2018 Item #2 Page 4 of 4 All Receive -Agenda Item # d-- For the Information of the: CITY COUNCIL ACM v" CAL CC \/" oate~ha\1£< City Manage r 7 February 13, 2018 Council Memorandum To: From: Honorable Mayor Hall and Members of the City Council Gary T. Barberio, Assistant City Manager Via: Kevin Crawford, City Manage'f!--£-- {city of . Carlsbad Re: Supplemental Information for City Council Agenda Item #2 -Authorization to Negotiate a lease agreement for the Dove Library Cafe During the City Council _briefings held on Monday, February 12, 2017, staff wa s asked to provide some additionalinformation. Please find attached the following: 1) The Request for Proposals (RFP) for the Dove Library Cafe, which was authorized for release by the City Council in November 2017; 2) Proposal received from Lisa Martel ("Chapters"), received on Decembe r 8, 2017; and 3) Proposal received from Brian Hall ("Seagrounds, LLC"), received oh De cember 14, 2017. Staff is recommending that the City Council authorize city staff to negotiate a lease agreement with Lisa Martel to operate the Dove Library Cafe. Staff will return to the City Council for approval of the lease agreement. cc: Celia Brewer, City Attorney , Heather Pizzuto, Library & Cultural Arts Director Curtis M. Jackson, Real Estate City Manager's Office City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2820 t City of Carlsbad REQUEST FOR PROPOSALS For Dove Library Cafe PROPOSALS DUE PRIOR TO: December 14, 2017 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 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 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. II. 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. Renovatio.ns 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/ comm~rcial 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 pro~,ided 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 Average Library Attendance: Hours of Daily Visitors Average Hours Open Operation Sunday 524 4 1-Spm Monday 1224 12 9am-9pm Tuesday 1179 12 9am-9pm Wednesday 1228 12 9am-9pm Thursday 1131 12 9am-9pm Friday 921 8 9am-Spm Saturday 945 8 9am-Spm Daily Staff Mon -Thurs 60 Friday 38 Saturday 28 Sunday 20 Average daily visitors to gallery so #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 *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 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. UI. 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 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 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: SO 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 Orc!I 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 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. S) 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 wgrk. 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 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 owne_rship 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. 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 tbe 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 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 Attachment B Estimated Capital Expense Worksheet --~•"•""• ~ --n• '"•-r•• • -,-v•• , H-••n• •••-.••.-••~ •••••••• '-'"<"·~·••,••,-••••·--·"<~ CAPEX (Capital Investment Breakdown) Description Construction HVAC Electrical Lights Licenses/Permits Other: Infrastructure Sub-Total Proprietor Equipment Equipment* _ Millwork Package Si~ns _ _ Dishj~LJssing/Trash Ar~c1 _ Explanation V_arie~dependingon prnprietor - Counter, cabinets, etc -- Menus boards, ~raphics Furniture Chairs, Tables, Stools Small Wares Plc1tes,Silv~r1111are, Servin~ Other: $ Proprietor Equipment Sub-Total $ *Includes: Cooktops Ovens· ~spresso J\Jlachine Sinks · Prep Tables Ice Machine _ ~~1'ri~eration Dish Machine Storage (wet, dry) Paper Storage Flooring Display Vending 12 Low High $ Low High $ 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: Explanation Library visitors per day % of visitors who will buy Gues.ts 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 $ $ $ COGS Sub-Total $ OPEX (Operating Costs) Description C_r:~~it Sard Fee_s/B~!Jkirig ... . ~i.ri!=ri;.L.aundry,_U_riif~rms. Janitorial, Safety_. _ ..... . f?_ffic1: ~xp~ns_e~! ~~A, . Marketing __ _ Insurance J:i.<:e_nses,_ 1=_e_es,_Per.n:ii!5 _ Other: Rent OPEX Sub-Total Explanation EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization) Sales-Labor-COGS-OPEX 13 $ $ Estimates 1280 355 - Estimates Estimates Estimates Estimated Attachment D Architectural Drawings of Cafe 14 ld11 A F:R.OFO'iAL FOR. DOVE tlBR.AR.Y LO'-ATION 'lUBf\lTTED BY U\A /"\AR.TEL 12/9&/17 j i I r I, I 1: F I I I I Hi Curtis, Thank you in advance for reviewing my proposal for the Dove Library cafe. As you review the revised figures for the Tl allowance, you'll notice that they have been adjusted to rneetthe high end of the required prevailing wage guidelines. I will not have a firm figl,ire until that part of the proposal is reviewed by the appropriate government entity; I expect thatthe figures will decrease slightly in each category as we make adjustments in payroll and material costs. There have been some changes in the interior layout. I'd like to move the wall and door to the existing storage room to allow more room along the back wall which would allow me to move the dishwashing area to the corner and out of customer sight. I have also pared down the amount of planned seating. The original seating plan was too tight for the space. The balance of the information requested in the RFP guidelines can be found in my business plan. There is also a small amount of support documentation included. Information regarding financial capacity and rental rates have been discussed in earlier documentation from January, July and August. This information has not changed. The proposal is being submitted as a sole proprietorship but will be changed to an LLC sometime in early 2018. The proposal is contingent upon the receipt of adequate information that has been requested and not covered on the blue prints and a successful negotiation of all lease terms. The proposal will remain in effect for 180 days until May 30, 2018. Lisa Martel Chapters -Dove Library Competition Current Alternatives Currently, our library patron;s only choice to get a beverage or snack is to either stop prior to their visit or walk across two parking lots to access a few chain vendors and a coffeehouse with a limited menu. Our Advantages • Convenience of an onsite location • healthy appealing and library friendly menu items • high quality coffee/beverages • menu flexibility to accommodate various event needs • Ability to develop and manage a catering program • environmentally friendly pack.aging program • customer loyalty program • library literacy program fund.raising support • experience of management staff artd team • Carlsbad resident in tune with the community 3 CONFIDENTIAL -DO NOT DISSEMINATE. This business plan contains confidential,. trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Chapters • Dove Library Execution Marketing & Sales Marketing Plan Themar:ketingplanat C'.hapters begins with cJganly designed andeasilyunderstoqd signage and menus. Items that are approved for consUil.lptionwithin the Library itself will be. clearly marked with a "LF" library friendly symbol. All grab and go items will be individually labeled and. priced for easy pick up and purchase. Printed andlaminated menus for both food and drinks will be availabfo for reference by out patrons when they walk in. Made to order sandwicltes and salads wijl be ordered by using a preprinted order form that the client will fill out and give to their server. Having both a grab and go and a made to o:rder program will enable us to maximize ~stom.er needs minimize their wait time and maintain a high level of cu,stomer satisfaction. Chapters will establish a loyalty program to encourage patrons tojoin our database and purchase frequently. The forinatwill be provided by the POS system provider. Details to follow; Weplal:l to work closely with marketing staff at Dove Lihratyto capitalize artd enhance their current prognµns like Toddler Time, Story Time Theatre, Foreign Film Fridays1 Cinema Series etc. Menu iteITIB. can b.e developecl to coordinate with these programs for example, a specially priced childtert's combo Shack to compliment the children~s programs or special dessert offeringspaitedwith espresso/coffee after film events. We. believe there is a g:reat deal of opporhttrity in this area to coordinate and make our patron's experience at the featured events even.mote enjoyable; A comprehensive catering program will be d~veloped with the input of llhrnry administration to accommodate all special events needs. A designa,ted on staff catering coordinator will ensure all client needs are met at a highlev:el of service; Details of the catering program will be listed as the program is developed. 4 CONFlbi:}ffiAL -DO Nor DISSEMINATE, This business plan contains confidential, trade·secret information and is shared only with the understanding that you will not share its contents or ideas with · third parties without the express Written consent of the plan author. Chapters · Dove Library Chapters will have a strong social media presence ~ Instagram, Facebook etc. These are all opportunities to market special events, promotions and new menu items to the public. Yelp will be regularly monitored to ensure high ratmgs by cafe visitors. Sales Plan Chapters will be budgeted at an initial volume level based 011 the visitor coqnts provided by the Dove Library and their consultant. The budgeted transaction dollar is expected to be slightly lower that the consutant' s while Perkatory establishes their customer base and full menu. Operations Locations & Facilities The primary sales location of Chapters will be at the Dove Library in the space that was formerly occupied by the used bookstore. The majority of this space will be used to house the sales and prep area of the business, Although there will be limited seating inside, patrons will be able to enjoy their purchases using the seating provided outside on the patio and inside the library facility itself. A commercial kitchen space will be utilized to support both the cafe sales and catering portions of Chapters. The kitchen will provide the equipment and space necessary to prepare, refrigerate and store om products. This will allow the production of quality foods, highly satisfied cafe customers and catering clients. The kitchen will also make it possible to meet and exceed the expectedsales volume. Technology Chapters will run a POS system that will accept cash, credit and bank card payments. The system will track sales information by customer count, peak vs. nonpeak sales times, sales by category and inventory control The information provided by these reports will used to ensure we are meeting our customers needs to the best of om ability, schedule staffing accurately, control payroll and food waste. The POS system will provide a program to encourage customer loyalty by giving patrons promotional 5 CONFIDENTIAL· DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you vlill not share its contents or ideas ·with third parties without the express written consent of the plan author. Chapters -Dove library Milestones & Metrics Milestones Table Milestone Du.e Date Who's Responsible Complete final business plan January 31, 2018 Lisa Martel Obtain Licenses and permits February 10, 2.018 Lisa/Eric Complete blue print I plan check February 28, 2018 Lisa/Eric Secure,start up funding March 01, 2018 Lisa Martel Complete social media plan and accounts March 10, 2018 Lisa Martel Begin Interior Construction March 14, 2018 Eric Kilstrom . Complete menus May 01, 2018 Lisa Martel Complete equipment purchases May 18, 2018 Lisa Martel Complete Interior Construction June 01, 2018 Eric Kilstrom Technology systems June 04, 2018 Lisa Martel Obtain certificate of occupancy June 04, 2018 Lisa/Eric Soft Opening June 08, 2018 Lisa Martel Grand Opening June 11, 2018 Usa Martel Key Metrics Phase I key metrics -the focus is on controlling start up costs, construction, equipment purchases, licenses and permits. · Phase 2 key metrics -food costs, payroll, repair and profit margins 7 CONFIDENTIAL -DO NOT DlSSEMlNATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. · Chapters -Dove Library I have many friends and acquaintances who are. experienced and very successful :in the food service industry. They are valuable resources for information for menu development, equipment selection, food purveyor recommendation, marketing ideas and human resources management. Specifically for this project, I have Chris Tempesta as a business advisor: Chris is an established business owner. She reviews and critiques decision making and submissions. Eric Kilstrom is my project manager. He oversees and obtains information regarding the construction build out. 9 CONFIDENTIAL -DO NOT DISSEMINATE. This business plan contains confidential. trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author. Menu o·ptions Espresso drinks and fresh brewed coffee served hot using Stumptown Roasters and flavored syrups from Ghiradelli and Manin brands. Stumptown cold brew coffee and two flavors of Kombucha on tap. · Selection of gourmet hot teas freshly brewed Green and Passion fruit iced teas and iced blended tea lattes in Chai and Matcha flavors. Blended to order fresh fruit smoothies in a variety of flavors. In addition a selection bottled and canned drinks will be available. The will include bottled water, La Croix, Sodas, energy drinks etc .. An assortment of baked goods to indude croissants, scones, sweet breads, dessert bars and gourmet cookies. All items will be freshly baked and delivered daily from Baked in the Sun. Breakfast items will include, bagels, breakfast sandwiches, steel cut oatmeal made daily with an assortment of toppings and acai bowls topped with fresh seasonal fruit. Food items available throughout the rest of the day will consist of a selection of grab and go and made to order sandwiches, salads with homemade dressings and _soups. Vegetarian options will be offered. In addition, a selection of healthy quick snacks will be available such as hummus and chips, fruit and cheese sampler, gourmet hot pretzel bites, flavored nuts qnd popcorn. There will be a selection of "kid friendly'' options as well. Kid size drinks, box lunches and mac and cheese. All selections will be served in tecycled/biodegradable/compostable paper products and utensils. Catering Options I have secured local commercial kitchen space to be utilized for prep and catering events. To begin, the basic catering menu wiU offer a selection of three to five gourmet salads and six gourmet s~ndwich options. The options will be offered as "build your own" platters, pre-made tray service or individual picnic style bag lunches. Fresh cookies, snacks and beverages will also be available. Catering minimums will be set at 10 people. At this point, I haven't determined a maximum but I'm confident that parties of 150+ can easily be handled. I have additional catering staff available to help with and contract larger than 150. Chapters catering options will expand and adjust to the need of the clientele based on information provided by the Dove Library management staff. Lisa's Start Up Costs MHlwork Appliances Plumbing fixtures Blueprints Permits POSequip Furniture Small wares Signage/nienu HR expenses Marketing Payroll Packaging initial food cost Total start up cost (Lisa) 30000 38300 2000 6000 300() 1000 4000 1500 1200 2000 1000 3000 2000 3000 90,000 1 Hi Curtis! Please forgive me for the novice approach for this submission. I wanted to get something to you for reference before the deadline date. I know you'll require a professional rendering before you go to council. Please know that I'm working on it. For now, rm providing a very basic layout of what is planned along with photo references to give you an idea.on the direction being tc1ken. Eric will provide you a sample board of colors and finishes that we'll be working With. The general style of the cafe will be a modified Arts & Crafts style that will be demonstrated in the color palette, fixtures, and fonts used for signing. The millwork photos may appear a bit "busy" with color and signage; I will eliminate this by using a more subtle, upscale approach to color, fixtures and signage placement Here is the reference for the numbered areas on the layout: . 1. The back wall will house the 3 compartment sink, hand sink, coffee maker, panini machine, induction burners, convection oven and a tall refrigeration unit in the corner by the electrical room door. the back wall and the walls on either side will be tiled with subway tile (tile on sample board) 6ft up. The tile on the back wall will be capped with a display shelf. I'm , borrowing this idea from the new Starbucks on Tamarack. 2. This section will house the sandwich table and an additional stainless worktable. A 4 ft high facade matching the miUWork will be built in front. It will be topped with 1ft high glass panels. 3. Section 3 is the service counter area. It will house a glass bakery case, the POS terminal, the espresso machine and an ifa accompaniments ,and the service return as seen in the photo, There will be 3 decorative lighting fixtures above this section (see photo reference) 4. Section 4 will house a service sink, and ice maker, the blenders for smoothies and a tall freezer; 5. Section 5 will be a framed in open front refrigeration unit that will house grab and go sandwiches, salads, soft drinks, and various· refrigerated snacks. 6. Section 6 will be the tall shelving unit frorn the millwork package that is featured in the photos. It will house grab and go snacks that do not require refrigeration, packaged coffees etc ... 7. This section is the condiment counter featured in the photos. All the fixings for coffee drinks, napkins, straws etc .... 8.. Bar height counters with stools and electrical outlets for charging purposes 9. Ditto. Please know that the customer seating area is a work in progress. it is very small space and we're trying to figure out how to best utilize it. I believe I'll need a table that is wheelchair accessible to be ADA compliant. The photos of the millwork will show some blonde finishes that will be eliminated by refacing them.-Please refer to the sample board for the replacement finishes. I haven't included photos of appliances. I'm researching for the.mo$t energy efficient items with the best warrantees. SDG&E has a foodservice demonstration kitchen at their energy innovation center that is providing me a great deal of information. The suspended ceiling will have the appropriate, health department required tiles of the actual work area. The ceiling over the customer service area will have a coordinating tile that will be painted in a darker shade to add dimension and distinguish one area from the other. Please refer to the sample board to see the wall color. There will pe a large graphic feature of the cafe name on the wall to the left when you walk in from the library entrance. Several types of sheet flooring are being considered for the work area behind the counter. lhe floor through the customer service area will be stained and sealed concrete. I hope this brings the look.of the cafe more in focus for you. It would be great if I could get clarification on the expected arrangements for the Cole library so I cah continue to work on getting the entire business plan/overview in order. Please advise. Thank you! Lisa Martel