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Agenda Item
ASR
Control 08-002223 |
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MEETING DATE: |
01/27/09 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
1 |
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SUBMITTING
Agency/Department: |
OC Public Works
(Approved) |
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Department contact
person(s): |
Tony Ferrulli (714) 834-3790 |
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Tom Mason (714) 834-4389 |
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Subject:
Cafe OC Tenant Selection
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ceo Concur |
County
Counsel Review |
Clerk of the Board |
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Concur |
Approved Agreement to Form |
Discussion |
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4/5 Vote |
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Budgeted: Yes |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A |
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Funding Source: N/A |
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Prior Board Action: December
6, 2005 |
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RECOMMENDED ACTION(S)
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1. |
Find that the proposed project is Categorically Exempt (Class 1) from the provisions of CEQA pursuant to Section 15301 of the CEQA Guidelines. |
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2. |
Select Joseph D'Angelo, dba Bella's Kitchen, as the primary tenant and Concepts Food Service, Inc. as the alternate tenant for Cafe OC. |
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3. |
Authorize OC Public Works Director or designee to negotiate a final lease with the selected primary tenant or the alternate tenant if agreement cannot be reached with the primary tenant. |
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4. |
Approve the attached Lease form and authorize the Chair of the Board to execute the Cafe OC lease in substantially the form of the attached Lease when it has been executed by the tenant and approved by County Counsel. |
SUMMARY:
Selection of a tenant for Cafe OC; authorization to negotiate a lease; and approval of a lease form with authorization for the Chair of the Board to execute will support the availability of convenient food service in the Santa Ana Civic Center for the public and County employees.
BACKGROUND INFORMATION:
On December 6, 2005, your Board approved a lease with the present tenant, for which a competitive bidding process was not used. The lease was for two years and your Board delegated the option to extend the term for three additional one-year periods to the Director of OC Public Works. The lease revenues were below market and not covering County monthly operating cost, therefore, OC Public Works issued a Request for Proposal (RFP) for a new lease.
The RFP was issued by OC Public Works on August 6, 2008 and approximately 1,000 e-mails were sent out to vendors registered on-line to do business with the County for food related services notifying them of the solicitation. OC Public Works placed an advertisement in the Orange County Register and ran a Public Notices advertisement for five days in the same newspaper.
A pre-proposal conference was held on September 23, 2008 and attended by three prospective proposers and on September 25, 2008 three proposals were received. A summary of the proposals is attached as Exhibit A.
An evaluation committee comprised of five County employees, one each from the Assessor, Auditor-Controller, Clerk Recorder, County Executive Office/Finance, and Treasurer-Tax Collector, all of whom work in the Santa Ana Civic Center, evaluated the proposals. The evaluation committee used the evaluation form, attached as Exhibit B, to score each proposal. A Memorandum of Recommendation, attached as Exhibit E, summarizes the scores of all proposals. On October 23, 2008, the evaluation committee interviewed the three proposers. At the end of the interviews, the evaluation committee scored the proposers as follows:
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Proposer |
Score |
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Joseph D'Angelo, dba Bella's Kitchen |
2,170 |
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Concepts Food Service, Inc. |
2,025 |
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Damoui's Enterprises, Inc., dba Oscar's Deli and Grill |
1,555 |
Upon your Board's approval, OC Public Works will enter into negotiations with the recommended primary tenant and if agreement cannot be reached, negotiations will be undertaken with the alternate tenant. The recommended lease form includes a five year lease term with the option to extend for one additional five-year term. The County will receive the greater of Annual Minimum Rent of Percentage of Gross Receipts. The estimated County revenue to be negotiated with the selected tenant is as follows:
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Year |
Annual Minimum Rent |
Percentage
of Gross Receipts |
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1 |
$24,000 |
6% |
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2 |
$24,000 |
7% |
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3 |
$30,000 |
8% |
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4 |
$36,000 |
9% |
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5-10 |
$48,000 |
10% |
The final lease agreement will be presented to the Chair of the Board for execution in substantially the form of the attached Lease, Exhibit C. The target date for the lease term to begin is April 15, 2009.
Compliance with CEQA: The proposed project is Categorically Exempt (Class 1) from the provisions of CEQA pursuant to Section 15301 of the CEQA Guidelines.
General Plan: The project conforms to the General Plan of the City of Santa Ana.
Legal Authority: Government Code §25536 provides that the Board of Supervisors may lease county property for employee cafeteria purposes and approval requires 4/5 vote.
FINANCIAL IMPACT:
N/A
STAFFING IMPACT:
N/A
EXHIBIT(S):
Exhibit A-Café OC Proposers Comparison Chart
Exhibit B-Evaluation Form
Exhibit C-Model Lease
Exhibit D-Model Lease Summary
Exhibit E-Memorandum of Recommendation