CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 16 Section Name: CONSENT CALENDAR Account Number: 10-6661 File ID: 26-11431 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Library Department
MEETING DATE: July 20, 2026
SUBJECT:
San Mateo Public Library Main Branch Cafe Operating Lease — Agreement RECOMMENDATION:
Approve a Property Lease and Operating Agreement with Henok Getahun for operation of the PLUR Cafe at the Main Library Branch for two years commencing on July 22, 2026, through July 21, 2028, in accordance with Municipal Code Section 3.62.030(b); and authorize its execution by the City Librarian.
BACKGROUND:
When the new Main Library opened in 2006, a cafe space was included on the third floor in response to public feedback gathered during meetings held to inform the design of the new library building. Between 2006 and 2015, two vendors operated cafe establishments in the space. The first exercised their option to terminate their lease in 2008, and the second operated from 2008 until 2015, at which point their lease was not renewed by the City. Due to a strong desire on the part of the public and staff to maintain a cafe presence, the Library issued a third Request for Proposals (RFP) for cafe operation in February 2016. At the conclusion of the selection process, Rafat Haddad of 3 Bees Coffee was selected as the new cafe operator. Mr. Haddad operated the cafe at the Main Library from 2016 until December 2022, when he exercised his option to terminate the lease. The public continued to express a strong desire for a coffee shop, and in February 2026, the Library launched a fourth RFP for cafe operation.
Two vendors submitted proposals and participated in the selection process, which identified Mr. Henok Getahun as the new cafe operator. Mr. Getahun has operated three cafe locations, including cafes in hospitals and local government buildings throughout Santa Clara County, over the past five years. His business has earned a strong reputation, and Mr.
Getahun has demonstrated a commitment to providing high-quality products and excellent customer service, which he will bring to the Library. The City now wishes to enter into a lease agreement with Mr. Getahun from July 22, 2026, through July 21, 2028.
BUDGET IMPACT:
The City receives 10% of gross sales for months in which the gross sales exceed $10,000. Rent is waived if the gross sales do not exceed $10,000 to support the sustainability of the cafe service in the Library. The estimated annual revenue to the City will be within the range of $6,000 - $12,000.
ENVIRONMENTAL DETERMINATION:
This Lease Agreement is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA Guidelines Section
15301.)
CITY OF SAN MATEO
STRATEGIC PLAN ALIGNMENT
This staff report supports the Infrastructure initiative.
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Lease Agreement
STAFF CONTACT
Marcia Mendonca, Senior Management Analyst
[email protected]
(650) 522-7805