SR-09-11-2012-3LC „Yo, City Council Report
Santa Nloaica”
City Council Meeting: September 11, 2012
Agenda Item: 33 L-
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Temporary Operator License Agreement for 12040 -12048 Wilshire
Boulevard
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a License Agreement with Chauvet Tree Farms for the short-term use of City -
owned property located at 12040 -12048 Wilshire Boulevard. The license fee of $10,004
would cover the initial first term period of 61 days with the option, at the City's
discretion, of up to four additional 90 day extensions during the 2013 -2016 Christmas
seasons, for a total of up to five Christmas seasons.
Executive Summary
On May 11, 2012, staff issued a Request for Proposals (RFP) for Christmas tree lot
operators. Chauvet Tree Farms was the only operator to respond to the RFP. The
License Agreement would allow Chauvet Tree Farms to sell Christmas trees on the
City -owned property at the southeast corner of Wilshire and Bundy. The proposed
initial license period is for 61 days, from November 1, 2012
through December 31, 2012, for a license fee of $10,004. This fee would increase
annually thereafter by the Consumer Price Index (CPI).
Discussion
Each year, staff receives inquiries from Christmas tree lot operators seeking information
about City -owned vacant land that can accommodate Christmas tree sales. However,
an appropriate vacant City lot was not available for temporary use until the City acquired
the Property at 12040 -12948 Wilshire Boulevard in March 2010. This property is
located in the City of Los Angeles, adjacent to the City of Santa Monica's Arcadia Water
Treatment Plan.
Interim use of this property for revenue - generating purposes such as Christmas tree
sales, and for other short-term uses, is appropriate until long -term plans for the property
are developed. Therefore, this year, in response to the inquiries, staff issued a
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Request for Proposal (RFP) for Christmas tree lot operators for the property at 12040-
12048 Wilshire Boulevard for a period of up to ninety days during the 2012 Christmas
season.
Contractor /Consultant Selection
As part of a competitive bid process, on May 11, 2012, staff posted the RFP on the
Economic Development web site and sent it to seven Christmas tree lot operators. In
addition, this RFP was posted on Planet Bids on May 14, 2012 and was sent to the
California Christmas Tree Association on May 16, 2012. The selection criteria included
three years of experience with Christmas tree lot operations and the financial resources
to provide a quality service to the public.
On May 16, 2012 staff also issued an addendum to the RFP to include the option, at the
City's discretion, of up to four additional 90 day extensions during the 2013 -2016
Christmas seasons for a total of up to five Christmas seasons. Three perspective
bidders viewed the RFP on Planet Bids, however, only one response was received from
Chauvet Tree Farms ( Chauvet), who proposed to rent the site from November 1, 2012
through December 31, 2012 and pay a fee of $10,004. This fee would increase during
each short -term period of the then - current United States Department of Labor
Consumer Price Index (CPI). The proposed hours of operation would be from 10am to
10pm, seven days a week. The first three weeks of November would be used for lot
setup and acquiring all required City of Los Angeles permits. Retail sales would begin
on November 23, 2012 and close on December 25, 2012. The last week of December
would be used for cleanup and removal of all debris. Chauvet would be required to
obtain all permits and other approvals from the City of Los Angeles.
City staff was satisfied with Chauvet's execution of their lease term on this property last
year and received excellent reviews regarding their demonstrated expertise, knowledge,
and experience from property owners including the City of Culver City and the
Metropolitan Transportation Authority who leased property to Chauvet in the past for
operation of Christmas tree lots.
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Financial Impacts & Budget Actions
The License Agreement will generate $10,004 in additional revenue for the City. Funds
will be deposited in Account No. 25671.402350 (Water - Miscellaneous Non - Operating)
Prepared by: Elsa Trujillo, Senior Development Analyst
Approved: Forwarded to Council:
Andy Agle, Director
Housing and Economic Development
City Manager
Reference Contract No.
9643 (CCS)