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Coffee Society Lease Staff Report PUBLIC WORKS DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 www.cupertino.org CITY COUNCIL STAFF REPORT Meeting: January 4, 2011 Subject Coffee Society Lease. Recommended Action Authorize the City Manager to execute a three year lease with the Coffee Society. Discussion On August 23, 2010, the City issued a Request for Proposals to operate a food and beverage business in the 500 square foot café space of the Cupertino Library. The RFP was advertized in the World Journal, the San Jose Mercury, and the Cupertino Courier where interested parties were directed to the City’s web site for a full document. Additionally, staff emailed approximately 81 food service businesses and restaurants, of the nearly 160 food businesses in Cupertino, to advise them of the availability of the space and directed them to the City’s web site for the full RFP document. Approximately 62 commercial retail brokers were advised as well. Finally, those local business owners who knew the space might become available and were interested in leasing it, were notified directly of the RFP. On September 15, 2010, the City Clerk’s office had received three proposals by the deadline of 3:00 p.m. The respondents were as follows:  Streeter & Sons, DBA Coffee Society, Cupertino  Bonjour Crepes, Cupertino  Sanghee Lee, San Jose After careful consideration of the three proposals, Council instructed staff to enter into negotiations with the Coffee Society. Suitable terms were agreed to by Council in closed session on November 29, 2010 and a lease was subsequently prepared and provided to Jackie Streeter, owner of the Coffee Society, for signature. At the December 21, 2010 Council Meeting, Council asked for more time to review the proposed lease with the Coffee Society so it is being brought back for consideration at this meeting of January 4, 2011. Additionally, two areas of the proposed lease with the Coffee Society were identified for correction and those corrections have been made. Sustainability Impact: The lease and the use of the library café space by the Coffee Society fully supports the City’s sustainability goals. Fiscal Impact Upon execution of the lease, effective January 1, 2011, the City will begin receiving $1,000 per month, with an additional $50 per month the second year and an additional $50 the third year. _____________________________________ Prepared by: Terry W. Greene, City Architect Reviewed by: Timm Borden, Director of Public Works Approved for Submission by: David W. Knapp, City Manager Attachments: Lease Agreement