City Council Meeting: November 27, 2007
Agenda Item: 8-B
To: Mayor and City Council
From:
Subject: Approval of Criteria for Selection of
Concessionaire at the
Recommended
Action
Staff recommends that the
City Council approve specific criteria for selection of an operator to provide
concession services at the new Annenberg Community Beach Club at Santa Monica
State Beach (
Executive
Summary
This report outlines criteria to use in reviewing proposals from potential operators for concession services at the new Annenberg Community Beach Club at Santa Monica State Beach (415 PCH) as a key visitor service for users of the facility. The desired concession includes sit-down and take-out food service at the existing beach café as well as rental of beach equipment for visitors to the facility once opened in early 2009. A Request for Proposals (RFP) will be issued in December of 2007, and, using the criteria set forth in this report, City staff will evaluate proposals prior to returning to the City Council with a recommended concessionaire. The proposed selection criteria give preference to high performing incumbents and small businesses, among other considerations, and are consistent with prior direction of the City Council to consider incumbents and small businesses in the award of these types of contracts. The proposed criteria are similar to those used by California State Parks in other state park concessions. Staff believes that together these criteria will provide the evaluation committee with the tools necessary to identify the most qualified concessionaire for the new beach club, scheduled to open in early 2009.
Discussion
As part of the development of the Annenberg Community Beach Club, the City Council approved the project design and basic operating parameters that included the continuance of the existing beach café food service (“Back on the Beach”) as well as take-out food service and beach equipment rentals. Now that the construction is well underway, the selection of a concessionaire for these services is imperative to give the successful bidder appropriate time to plan for the beach club’s opening early in 2009. In accordance with City ordinances and State law, the concession contract will be bid through an RFP process. This report presents to Council staff’s proposed criteria for evaluating proposals submitted in response to this RFP and provides an opportunity for Council to discuss the overall merits of the City’s lease award process.
Background
On September 27, 2005,
City Council discussed the merits of the City’s process for evaluating proposals
for City leasing opportunities. At that
time, Council requested that this subject be considered further. An Information
Item responding to Council concerns was published on October 2, 2007 by the
City’s Economic Development Division regarding the City’s standard evaluation
criteria and process.
On July 24, 2007,
City Council authorized staff to submit a request to California State Parks for
approval of the minimum bid requirements for the new beach club concession
contract as required by State law. Those
terms included a contract term not to exceed ten years and a minimum annual
rental bid of 10% of gross receipts or $100,000, whichever is greater. At that time, and in response to the
September 27, 2005 discussion, staff committed to returning to Council prior to
the issuance of the RFP for this concession regarding the proposal evaluation
criteria, specifically relating to local and small businesses.
Recommended
Criteria
Staff recommends
that proposals be evaluated based on the criteria outlined below. These criteria are similar to the criteria
used by the State for other state park concessions and are in conformance with
the criteria used for other City leases as described in the Information
Item of October 2, 2007. Proposed criteria include:
·
The scope, extent, applicability, and quality of
proposer’s experience, particularly with regard to the development, management,
and operation of comparable food service facilities. Preference will be granted to
high-performing, incumbent concessionaires.
·
The extent, appropriateness, and quality of
proposed capital improvements. Proposed
improvements will be evaluated based on the extent to which they address state
health codes, contribute to the desired visitor experience and are consistent
with the other physical and operational aspects of the site.
·
Financial resources, history, and references of the
proposer(s) and the financial feasibility of the operation as proposed. Preference will be given to Small Businesses
as defined by
·
Compatibility of the proposed operation with the
site and the proposer’s demonstrated understanding of and commitment to the City’s
goals for the site.
·
Quality and feasibility of proposer’s food service
plan and commitment to healthy food standards.
· Competitiveness, appropriateness, and feasibility of proposer’s rental bid. Bids will be weighed against the quality of services and capital improvements proposed. Thus, the rental bid of those proposers who commit to the highest standards of food quality and/or facility improvement will be weighted when compared to proposers who offer only moderate standards.
By providing a preference for high-performing incumbents, the City can reward high-quality and reliable operators and support the continuation of traditional services valued by the public. A small business preference will help to “level the playing field” between large and small operators and is compatible with the small business incentive program used by the State. Staff believes that together these criteria will provide the evaluation committee with the tools necessary to recommend the most qualified operator for the site.
Previous Council Actions
On September 27, 2005, City Council discussed the merits of
the City’s process for evaluating proposals submitted in response to RFPs for
City leasing opportunities. After
considerable discussion, Council directed staff to provide opportunities for
discussing a general philosophy of leasing City assets and evaluation criteria that
considers existing operators and small businesses.
On February
28, 2006, the City Council reviewed and approved the refined schematic
design plans for the Annenberg Community Beach Club including the retention of
the existing restaurant, incorporation of a take out window, and a new
concession building for beach rentals at the north end of the site. On May
25, 2006, the City Council denied appeals of the Planning Commission and
Landmarks Commission actions; certified the Final EIR; and approved the
Development Review Permit, Reduced Parking Permit, Fence/Wall height
modification, and Certificate of Appropriateness for the Project. On September
12, 2006 the City Council approved terms of the settlement agreement with
project neighbors and on September
26, 2006 the City Council adopted a resolution expressing its intentions as
to the duration of certain Project Conditions of Approval as agreed upon in the
approved settlement agreement. On January
23, 2007, the City Council approved activation of phase two of Design-Build
contract for adaptive reuse of
Alternatives
Alternatives include the removal of some evaluation categories such as small business status and incumbent performance.
Environmental Analysis
Operation of the proposed concession was included as part of the
environmental analysis completed for the rehabilitation and adaptive reuse of
the site.
Public Outreach
All parties that have expressed an interest in this project or in
other City or State concession opportunities will be notified of this RFP. Its
availability also will be published in local media.
Financial
Impacts and Budget Actions
At
a minimum, these contract terms will maintain the current rent paid to the City
of approximately $100,000 per year, which is included in the FY2007-08 adopted
budget. Additional revenue may be
generated based on the proposal selected.
When the contract is awarded, the additional revenue amount will be
identified.
Prepared by: Callie
Hurd, Open Space Manager
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Approved: |
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Forwarded to Council: |
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Barbara Stinchfield Director,
Department |
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P. City Manager |
Attachment 1
Small Business Certification Eligibility Requirements
·
Must be
independently owned and operated;
·
Cannot
be dominant in its field of operation;
·
Must
have its principal office located in
·
Must
have its owners (or officers in the case of a corporation) domiciled in
·
Together
with its affiliates, be either:
o
A
business with 100 or fewer employees, and an average annual gross receipts of
$12 million or less over the previous three tax years, or
o
A
manufacturer with 100 or fewer employees.