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SR-850-005-01 (31) Council Meeting: September 27, 2005 Santa Monica, CA TO: Mayor and City Council FROM: City Staff SUBJECT: Recommendation to Authorize the City Manager to Negotiate and Execute a Concession Agreement with G.W. Inc., d.b.a. The Bookmark Café, to provide café services at the new Main Library of the Santa Monica Public Library INTRODUCTION This report recommends Council authorize the City Manager to negotiate and execute a Concession Agreement with G.W. Inc., d.b.a. The Bookmark Café, to operate a café concession at the new Main Library. BACKGROUND In March 2005, the City issued a Request for Proposals from interested and qualified entities to operate a 750 square foot café concession located in the central courtyard of the new Main Library at 601 Santa Monica Boulevard. The Library will be completed this fall and to the public by early 2006. An evaluation committee consisting of representatives from the Library, Resource Management, and City Manager?s Office reviewed 13 responses that were received by the April 7, 2005, submittal date. Five restaurateurs were initially selected as finalists: European Bakery, Elfie Mosse Café, SMPL Café, Sung Chung, and G.W. Inc. The evaluation committee, with the 1 assistance of restaurant consultant Manask & Associates, submitted questions and requests for additional information to the semi-finalists. European Café withdrew their proposal prior to submitting a response to the supplemental questions. After review and discussions including a check of references, interviews and food sampling, the evaluation committee selected G.W. Inc. as the top candidate for the Library Café concession. G.W. Inc. provided an extensive and reasonably priced menu of healthy food options, including breakfast items and a children?s menu. The recommended operator is a local and experienced restaurateur with a reputation for high quality food and excellent customer service. The operator owns two local restaurants, Bud?s Deli and Gary?s Grill, and received very favorable landlord and industry references. G.W. Inc.?s estimated operating and start-up costs, including capital investment for the build-out of the café, are estimated to be $175,000. G.W. Inc. is seeking a five-year term with two five-year options. BUDGET/FINANCIAL IMPACT The operator will pay a monthly license fee to be the greater of $3.00 per square foot ($2,250 monthly, and the rate is to be adjusted annually by CPI) or 9 percent of gross revenues. Revenue increases associated with this agreement will be included in FY 2005-06 Mid-term budget review and future budgets. 2 RECOMMENDATION Staff recommends that the City Council authorize the City Manager to negotiate and execute a Concession Agreement with G.W. Inc., d.b.a. the Bookmark Café to operate a cafe at the Santa Monica Main Library. Prepared By: Jeff Mathieu, Director Resource Management Department Miriam Mack, Economic Development Manager Greg Mullen, City Librarian Elana Buegoff, Sr. Administrative Analyst Reference Contract No. 8514 (CCS) 2