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
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A F:R.OFO'iAL FOR. DOVE tlBR.AR.Y LO'-ATION
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12/9&/17
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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