Administrative
Report
N.3., File # 21-3365 Meeting Date: 1/4/2022
To: MAYOR AND CITY COUNCIL
From: CAMERON HARDING, COMMUNITY SERVICES DIRECTOR
TITLE
DISCUSSION AND POSSIBLE ACTION REGARDING PREPARATION OF A REQUEST FOR
PROPOSAL (RFP) FOR CONCESSIONAIRE OPERATION OF THE VETERANS PARK
COMMUNITY CENTER
EXECUTIVE SUMMARY
In 1991, the City Council approved the repurposing of the former Main Library building located in Veterans Park as a banquet and special events center to be operated by a private concessionaire.
The building was re-named the Veterans Park Community Center (“facility”) and was seismically retrofitted and renovated to accommodate its new use. The initial catering and facility management agreement was awarded to Spectrum Holding Company, Inc. (“Spectrum”) in 1996. This contract was renewed in 2013 and remained active until it expired on October 31, 2020. At that time, the vendor elected not to pursue a renewed contract and vacated the facility.
Direction is needed on the type and scope of concessionaire services the City Council would like to include in the facility’s next operating agreement. To initiate this discussion, a draft request for proposal (RFP) representing the list of services historically provided at the facility has been attached to the report. The draft includes requirements for the operator to: 1) provide qualified food, beverage, event and facility management, 2) be responsible for all facility operations while assuming all financial risk, 3) pay the City a percentage of gross sales each month with an annual minimum return guarantee, 4) offer a discount for City-sponsored events, and 5) provide janitorial and other regular building maintenance services.
It has been suggested over the years that the City consider expanding the type of services offered at the facility to allow for greater and more regular community access. Ideas like an art gallery and/or a daytime café have been mentioned. These concepts could be added to the list of requirements in the drafted RFP or could form the basis for an alternative concessionaire agreement all together. It is recommended that the City Council discuss the Veterans Park Community Center RFP and provide direction on its content.
BACKGROUND
The Veterans Park Community Center is an 11,400 square foot landmark building listed on the National Register of Historic Places. It served as the city’s Main Library from 1930 through 1991. In January 1991, the building incurred substantial seismic damage as a result of the Sierra Madre earthquake, forcing its closure to the public. In late 1991, the City Council approved the repurposing of the facility as a banquet and events center and initiated plans for construction of a new library
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of the facility as a banquet and events center and initiated plans for construction of a new library facility adjacent to the Civic Center. The former main library building was renamed the Veterans Park Community Center (“facility”) and was renovated to include seismic upgrades and a historic restoration to accommodate its new use. Following completion of the renovation in 1995, the city issued an RFP for the facility’s catering and management operations. Spectrum was awarded the contract for operation of the facility in 1996. This contract was renewed in 2013 and remained active until its expiration on October 31, 2020. At that time, the vendor elected not to pursue a renewed contract and vacated the facility. The facility has remained closed due to precautionary measures associated with the COVID-19 pandemic.
In order to resume services at the facility, an RFP for facility operation must be released and a new agreement negotiated/executed. The RFP would solicit proposals from qualified operators with proven experience and a reputable track record operating a similar type of facility according to the terms and conditions desired by the City Council.
The terms and conditions of the past RFP and agreement included the following:
· Scope of Services:
o Manage and operate the facility including facility reservation and use calendars. o Coordination of qualified catering services for weddings and receptions, business meetings, parties and other events while assuming all associated financial risk. o Provide necessary staff resources including janitorial and other building maintenance services.
o Manage all promotional materials and marketing of the facility. o Provide facility equipment for private rentals including chairs, linens, flatware, etc. o Implement a responsible and approved parking plan.
· Term: Seven years commencing spring 2022 through spring 2029 with three, one-year options to renew.
· Financial Return to the City: Proposers must indicate their proposed percentage of gross sales as well as the guaranteed annual minimum return that would be paid to the city throughout the term of the contract. Projected gross sales must also be provided for years one through four.
· Building and Equipment Maintenance: The selected concessionaire will be responsible for janitorial services and routine building maintenance. Proposers must indicate the percentage of financial responsibility they will assume for the following building and equipment maintenance items:
o Maintenance, repair and replacement of tables, kitchen equipment, carpeting and flooring;
o Maintenance, repair and replacement of doors, windows, window frames, gutters and drain spouts;
o Ongoing maintenance, repair and replacement of all major building systems including HVAC, elevator, electrical, plumbing and sewer systems; and o Maintenance, repair and replacement of foundation, bearing and exterior walls,
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subflooring and roof.
As noted in the Executive Summary, the RFP can be modified to include more than just catering and special event services. Direction is needed on the RFP’s final scope of services.
The proposed timeline for the RFP is as follows:
Council Approval of the RFP……………………..January 18, 2022
Issuance of the RFP………………………………January 19, 2022
Pre-proposal Conference………………..............January 31, 2022 Deadline for Submission of Questions………….February 10, 2022 Final Addenda and Answers Issued…………….February 21, 2022 Proposals Due……………………………………..February 31, 2022
Evaluation Period………………………………….March 7 - March 10, 2022 Interviews…………………………………………..Week of March 14
Contract Award……………………………………April 2022
It should be noted that capital improvements to the Veterans Park Community Center are included in the approved Capital Improvement Program. Specifically, $405,000 was appropriated in the FY 2021 -22 Budget for the project. The project includes: upgrades to the building’s roof, paint, and masonry; repairs and upgrades to the elevator system; HVAC modifications; and window replacement. Staff expect most of the capital repairs to be completed prior to the start of the new facility concessionaire agreement. Any remaining items will be coordinated with the operator to limit impacts on operation.
COORDINATION
The City Attorney’s Office has approved the sample agreement included as part of the RFP. The Community Services Department consulted with the Public Works Department regarding the building maintenance provisions of the agreement and the timing of the CIP project. Additionally, the Financial Services Department was consulted regarding the receipt and review of proposals.
FISCAL IMPACT
The type and scope of services included in the final agreement will ultimately determine the amount of future City revenue and expenses at the facility. Under the facility’s prior catering and special events arrangement, revenues and expenditures associated with the Veterans Park Community Center for the last full year of operation (FY 2018-19) were as follows:
VETERANS PARK COMMUNITY CENTER FY 2018-19 PERFORMANCE
REVENUE EXPENDITURES
M & O/Maintenance $ 7,000
Building Occupancy $ 235,314
Building Replacement $ 1,548
City Overhead $ 39,437
Liability Insurance $ 29,547
Catering Concession $367,801 Sewer Fee $ 929
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Total $367,801 Total $ 313,775
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
1. Draft Request for Proposal (With Previous Agreement Terms)
2. Sample Lease Agreement