SR-112707-8B~~~
City Council Report
City of
Santa Monica -
City Council Meeting: November 27, 2007
Agenda Item: ~J~
To: Mayor and City Council
From: Barbara Stinchfield, Community and Cultural Services Director
Subject: Approval of Criteria for .Selection of Concessionaire at the Annenberg
Community Beach Club at Santa Monica State Beach
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 (415 PCH), as outlined in this staff report.
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 cafe 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 cafe food service ("Back on the Beach") as well as
take-out food service and beach equipment rentals. Now that the construction is well
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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 staffs 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 Couhcil 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.
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• 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 proposers) and the financial
feasibility of the operation as proposed. Preference will be given to Small
Businesses as defined by California's Small Business Certification program
(Attachment 1).
• 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 irnprovement 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.
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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 Mav 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,
FenceM/all 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
415 Pacific Coast Highway.
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.
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Additional revenue may be generated based on the proposal selected
contract is awarded, the additional revenue amount will be identified.
Prepared by: Callie Hurd, Open Space Manager
Approved:
~'u~-emu.- U(~t
Barbara Stinchfield
Director, Department
to Council:
P a ont Ewell
it anager
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When the
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 California;
• Must have its owners (or officers in the case of a corporation) domiciled in California;
and
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.
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