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SR-02-12-2013-3E.0-ft r Iddla City of City Council Report City {. 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. 1 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 E 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. 4 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 0 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. F'1 Reference Agreement Nos. 9700 (CCS) through 9708 (CCS)