SR-02-12-2013-3E.0-ft r
Iddla City of City Council Report
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Santa Monica
City Council Meeting:
Agenda Item:
To: Mayor and City Council
From: Rod Merl, Pier Manager
Subject: Vending Cart Licenses for the Santa Monica Pier
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute 12 -month License Agreements for the attached list of nine independent vending
cart operations on the Santa Monica Pier.
Executive Summary
This report recommends the Council authorize negotiation and execution of a 12 -month
vending cart license with the following nine finalists selected through a public Request
for Proposal process:
1. Candy Carousel (kettle corn, cotton candy, candy, shaved ice)
2. Redline (sunglasses)
3. Tee's R Us (t- shirts and custom transfers)
4. LA Beach Kites (kites, toys)
5. Two Photos In One (holographic photos)
6. Downtown Food Co (cut fruit)
7. Berlin Currywurst (sausage with curry)
8. Green Truck (organic wraps and fish tacos)
9. Crepe'n Around (crepes)
Background
For more than 10 years the Santa Monica Pier Vending Cart Program has helped to
contribute to the Pier's lively and unique character, activating the public space,
enhancing retail options, and providing more food choices for the Pier's diverse
clientele. In addition the Cart Program provides small businesses and entrepreneurs an
opportunity to operate a business at one of Southern California's premier destinations.
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City policy has been to provide regular intervals for competitive, public procurement
processes to select the best business enterprises for these public space licenses and
the vending opportunities they represent. Recognizing that the mix of uses on the Pier
has changed over time and will change in the future, the goal of the Santa Monica Pier
Vending Cart Program has been to make available and manage an appropriate mix of
retail and food uses for the public's enjoyment, as well contribute towards the fiscal self -
sufficiency of the Pier.
Currently the City has designated 12 mobile cart opportunities on the Pier deck.
Vending licenses for nine of these locations expired in June 2012 and have been
operating on a month to month hold over condition. The remaining three licenses will
expire in June 2013.
In the summer of 2012, the City issued an RFP to solicit proposals from interested and
qualified businesses for vending cart licenses for the nine available locations on the
Pier. The RFP was advertised on the City's website, through press releases published
in the local press, and through direct mailings to interested parties on the City's vending
cart waiting list. The City received 34 proposals by the September 28, 2012 deadline.
Discussion
The objective stated in the RFP was to award up to nine vending cart licenses which (i)
best meet the City's requirements outlined in the RFP; (ii) enhance the experience of
the pier visitor by making available to them a variety of interesting and unique beach
and pier related merchandise and food; (iii) provide revenue to the City; and (iv) provide
the best product and service to the public.
The 34 proposals were reviewed by an evaluation committee comprised of
representatives from the Office of Pier Management, Economic Development Division,
Santa Monica Pier Corporation, and Downtown Santa Monica, Inc. The committee
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evaluated the proposals based on responsiveness to the RFP; experience and
professional qualifications; product concept; cart design; and managerial capability; and
relevance to the Pier experience; in addition, in accordance with the Santa Monica Pier
Leasing Guidelines, current Pier vendors in good standing who submitted proposals
received bonus points for being an existing Pier business.
Thirteen operators were invited to make a presentation before the committee and
respond to questions. The evaluation committee focused on operations whose products
were unique and thematically appropriate for the Pier yet not duplicative of products and
offerings already available at the Pier.
The committee recommends the nine operators referenced above and detailed in
Attachment I be awarded 12 -month vending licenses. The new operators would have
four months from Council approval to execute the license agreement and obtain a
permitted and approved vending cart or their rights for a license would terminate.
A description of each recommended vendor is attached. The recommended retail
merchants offer quality merchandise that is not overly represented on the Pier. The food
operators provide offerings that are not available on the Pier.
Of the nine recommended vendors, six are current Pier vendors. One of the nine cart
spaces is currently vacant. The remaining two current Pier vendors, an apparel cart
operator and a hat cart operator, were invited to interview with the evaluation
committee. However, they were not recommended for one of the nine available spots,
primarily due to the fact that their merchandise offerings, clothing apparel and hats, are
already found at multiple locations on the Pier.
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Financial Impacts & Budget Actions
Selected vendors will pay a flat monthly seasonal -fee per cart. Staff projects minimum
annual revenue of $106,650. This revenue is included in the FY 2012 -13 adopted
budget at account 30626.401830 — Vendor Rent.
Prepared by: Elana Buegoff, Senior Development Analyst
Approved:
Rod Merl
Pier Manager
Forwarded to Council:
Rod Gould
City Manager
Attachments: I. Description of Recommended Vendors
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Attachment 1.
Recommended Vendors
Two Photos in One: Pier vendor since 2005 selling holographic photos souvenirs. Photos are
taken at the cart or visitors can bring their own photos (hard copies or digital files) to have them
turned into 'holographic' prints while they wait.
Candy Carousel: Pier vendor since 2001, selling fresh popped kettle -corn, cotton candy, and
packaged candy including saltwater taffy gift boxes featuring the Santa Monica Pier logo.
Vendor has a second cart that sells shaved ice. Cotton candy sugars and shaved ice syrups are
hand -mixed to ensure unique flavors not available elsewhere on the Pier.
Tees 'R' Us: Pier Vendor since 2011, selling locally themed and custom t- shirts, sweats and
jackets in adult and children sizes. The cart will offer a new feature -- an on -site printer and
heat press that will allow visitors to customize shirts. Other unique products include sound
sensitive T- shirts that use electroluminescent technology to make them light up.
Redline: Pier vendor since 2000, selling high quality sunglass and sunglass accessories.
LA Beach Kites: Pier vendor since 2000, selling kites, wind socks and spinners, toys, and
personalized engraved key chains.
Downtown Food Co. & Commissary: Pier vendor since 2009, selling cut to order fresh fruit
(such as mango, watermelon, strawberries, cantaloupe, coconuts, and pineapple) served in a
32 ounce container.
Berlin Currywurst: Currywurst is a traditional street food in Germany consisting of sliced
sausage served with a curry flavored tomato sauce and eaten with a wooden stick. Owners
operated currywurst restaurants and vending carts in Germany, and subsequently relocated to
California. In 2011 they opened a Berlin Currywurst restaurant in Silverlake, followed by a
second location in Hollywood in November 2012. The Berlin Currywurst cart would offer visitors
a choice of beef, chicken, or tofu sausage. Products will be sourced from local farms and use
organic ingredients wherever possible.
Green Truck: The mission of Green Truck, a Los Angeles area mobile food service provider
since 2006, is to make local and organic food available for everyone. A limited menu proposed
for the pier would include organic chicken wraps, fish tacos and vegan quesadillas.
Crepe'n Around: Rated by Zagot in 2012 as one of 'LA's Top Food Trucks', owners propose to
serve sweet and savory crepes from a mobile food cart on the Pier.
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Reference Agreement
Nos. 9700 (CCS) through
9708 (CCS)