SR-02-12-2013-3Floom City of City Council Report
Santa Monica
City Council Meeting: 12�
Agenda Item:`]
To: Mayor and City Council
From: Rod Merl, Pier Manager
Subject: Trolley Kiosk License on the Santa Monica Pier
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a 36 -month License Agreement with "66 to Cali, Inc." a California based
company, to operate from a retail vending stand known as the "Trolley Kiosk" on the
Santa Monica Pier.
Executive Summary
This report recommends the Council authorize the negotiation and execution of a 36-
month License Agreement to '66 to Cali, Inc.' to operate from a retail kiosk known as
the Trolley Kiosk on the Santa Monica Pier selling Route 66 themed collectibles and
souvenirs.
Background
The Trolley Kiosk is a vending stand located on the Santa Monica Pier east of the
Santa Monica Pier Police Substation and is currently operated by '66 to Cali, Inc.'
selling Route 66 themed merchandise. '66 to Cali, Inc.' first became a Pier vendor in
2009 as part of the mobile vending cart program. In 2011, the business relinquished
its mobile cart to operate from the fixed location Trolley Kiosk. The Trolley Kiosk
license expired June 30, 2012 and the business has been operating under a month to
month hold over.
City policy has been to ensure public competition regarding leasing and licenses
opportunities on the Pier. A Request For Proposals for the Trolley Kiosk was issued in
September 2012. The RFP was advertised on the City's website and through direct
1
mailings to interested parties on the City's vending cart waiting list. The City received
six proposals by the November 15, 2012 deadline, including a proposal from the
current operator '66 to Cali, Inc.
Discussion
The six 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. Proposed
concepts included eyebrow threading, a food use, and various types of souvenir
concepts. The committee evaluated the proposals based on responsiveness to the
RFP; experience and qualifications; managerial capability; and product concept and
compatibility with Pier. In addition, in accordance with the Santa Monica Pier Leasing
Guidelines, the current Pier vendor received bonus points for being an existing Pier
business in good standing.
Of the six submittals received, '66 to Cali, Inc.' submitted the strongest proposal with
respect to each criterion set forth in the RFP. A new 36 -month agreement to sell
Route 66 themed collectibles and souvenirs including apparel, plaques, signs,
glassware, books, and maps is recommended.
While there are other merchants on the Pier that sell Route 66 souvenirs, '66 to Cali's'
strategy to ensure the uniqueness of its operation has been to sell higher quality
products and employ staff who are exceptionally knowledgeable and eager to share
information with visitors on the history of Route 66 and the Santa Monica Pier.
Financial Impacts & Budget Actions
The Operator shall be expected to pay the City the greater of monthly minimum /base
rent or ten percent of gross sales for each calendar month. Staff projects minimum
annual base rent revenue of $11,850. This revenue is included in the FY 2013 -14
adopted budget at account 30626.401830 — Vendor Rent. The City maintains a sales
RAF
examination program to verify the accuracy of the sales reports submitted by City
tenants with percentage rent obligations.
Prepared by: Elana Buegoff, Senior Development Analyst
Approved:
Rod Merl
Pier Manager
3
Forwarded to Council:
Rod Gould
City Manager
Reference Agreement No.
9709 (CCS)