Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
101-Staff Report.pdf
PUBLICWORKS DEPARTMENT CITY HALL 1010300TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408)777-3354www.cupertino.org CITYCOUNCILSTAFFREPORT Meeting: March 1, 2011 Subject CoffeeSocietyLease. RecommendedAction AuthorizetheCityManagertoexecuteaoneyearleasewiththeCoffeeSociety,withtheoption grantedtotheCoffeeSocietytoextendthisinitialtermwithtwoadditional oneyearperiods. Discussion OnAugust23,2010,theCityissuedaRequestforProposalstooperateafoodandbeverage businessinthe500squarefootcaféspaceoftheCupertinoLibrary.TheRFPwasadvertizedin theWorldJournal,theSanJoseMercury,andtheCupertinoCourierwhereinterestedparties were directedtotheCity’sweb siteforafull document. Additionally,staffemailedapproximately81foodservicebusinessesandrestaurants,ofthe nearly160foodbusinessesinCupertino,toadvisethemoftheavailabilityofthespaceand directedthemtotheCity’swebsiteforthefullRFPdocument.Approximately62commercial retail brokerswereadvisedaswell. Finally,thoselocalbusinessownerswhoknewthespacemightbecomeavailableandwere interestedinleasingit,were notified directly oftheRFP. OnSeptember15,2010,theCityClerk’sofficehadreceivedthreeproposalsbythedeadlineof 3:00 p.m. Therespondentswereasfollows: ·Streeter&Sons,DBACoffeeSociety,Cupertino ·BonjourCrepes,Cupertino ·SangheeLee,SanJose Aftercarefulconsiderationofthethreeproposals,Councilinstructedstafftoenterinto negotiationswiththeCoffeeSociety.Suitabletermswereagreedto byCouncilinclosedsession onNovember29,2010andaleasewassubsequentlypreparedandprovidedtoJackieStreeter, owner oftheCoffeeSociety,for signature. AttheDecember21,2010CouncilMeeting,Councilaskedformoretimetoreviewtheproposed leasewiththeCoffeeSocietysoitwasthenbroughtbackforconsiderationatthemeetingof January4,2011.Additionally,twoareasoftheproposedleasewiththeCoffeeSocietywere identifiedforcorrectionandthosecorrectionsweremade. OnJanuary4,2011,CouncilvotedtorejecttheproposedleasewithCoffeeSocietyandreopen theRequestforProposals.TheCityofCupertinohasexaminedthepertinentcircumstances surroundingthistransactionandhasgiveninstructionstotheirrealestatenegotiatorsinclosed session. TheattachedleasewiththeCoffeeSocietyis nowrecommendedforapproval. A summaryofthetermsofthis proposedleaseareasfollows: ·aoneyearleasewiththeCoffeeSociety,withtheoptiongrantedtotheCoffeeSocietyto extendthisinitialtermwithtwoadditional oneyear periods ·thebaserentisestablishedforthefirstyearat$1,000permonth,followedby$1,050per monthforthe secondyearand $1,100 permonthforthethirdyear ·thebusinessmaybesoldatanytimeandtheleaseassignedprovidedthatthenewtenant retainsthe samename,typeandlevel ofservice. SustainabilityImpact: Theleaseandtheuse ofthelibrarycaféspacebytheCoffeeSocietyfully supportstheCity’s sustainabilitygoals. FiscalImpact Uponexecutionofthelease,effectiveMarch1,2011,theCitywillbeginreceiving$1,000per month,withanadditional $50 permonththe secondyearandanadditional $50 thethirdyear. _____________________________________ Preparedby: TimmBorden,Director ofPublicWorks ApprovedforSubmissionby:DavidW.Knapp,CityManager Attachments:LeaseAgreement