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HomeMy WebLinkAbout11 - Concession at CdM State BeachCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 11 March 28, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, Assistant City Manager 949 - 644 -3002 DKiff(cD- city. newport- beach. ca. us Administrative Services Department Evelyn Tseng, Income Contract Administrator 949 - 644 -3153 Etseng @city.newport- beach.ca.us SUBJECT: Award of Concession at Corona del Mar State Beach ISSUE: Who should be selected as the next food, beverage, and beach goods concessionaire at Corona del Mar State Beach? RECOMMENDATIONS: 1) Select Kilmer Enterprises, Inc, as the next concessionaire at CDM State Beach based on the proposal submitted by Kilmer in response to City's recent Request for Proposals for the CDM concessionaire. 2) Authorize the Mayor to execute a Concession Agreement based on the terms attached to this report. DISCUSSION: Background: From November 1991 through September 2005, Kilmer Enterprises managed the Corona del Mar State Beach concession. During that time, Kilmer Enterprises paid 45% of its monthly gross receipts for rent. In the last calendar year of its operation, 2004, Kilmer Enterprises paid $100,420.00 to the City. Award of CDM Concession March 28, 2006 Page 2 In September 2005, the concession agreement with Kilmer Enterprises was terminated in order to commence construction of the Corona del Mar Beachgoer Amenities Improvement Project (the "Project "). The Project includes 1043 square feet for a concessions facility, and is scheduled to open sometime in late spring, 2006. Council Policy F -7 requires the City to "seek revenue equivalent to the open market value of the highest and best use; and, whenever possible the City shall conduct an open bid or proposal process to insure the highest financial return" in negotiations regarding the lease of non - residential income property. Process. On October 27, 2005, the City issued a Request for Proposals for the concession operations at Corona del Mar State Beach. All the proposers are willing to negotiate on rent, rent credits, lease term and menu items. After reviewing the written proposals, we summarized the proposals then distributed summaries to each person that submitted a proposal (NOTE: the written proposals are available in the City Manager's Office should anyone want to see them). Then City staff (Dave Kiff, Lloyd Dalton, Evelyn Tseng, Glen Everroad, and Aaron Harp) met in person with each proposing firm to discuss their concepts. Following those meetings, some of the firms refined their rent and term information — the refined results are summarized in this staff report. Finally, we met with Council Member Nichols, in whose district CDM State Beach resides, to discuss the process with him and hear his opinions. Then we made our recommendation via this staff report. The Proposals. In reviewing the proposals below, it is important to note that while some candidates may provide higher rent offers than others, the concession experience of the other candidates should be taken into account because their reputation and creativity may generate more overall gross revenue. Below is a summary of the four proposals received. Please note that the rent hypotheticals assume $240,000 gross /year. 1 — Mike Ali — Mike Ali currently owns and operates Zack's Beach Concession in Huntington Beach. Mike comes with good recommendations from State Parks and others. TERM: Mike proposed a 10 -year lease term with rent credit for tenant improvements. RENT: $7,200 and 20% of gross sales per year. Therefore, $55,200 /yr. MENU: Hamburgers, hot dogs, french fries, nacho /cheese strips, pizza, burritos, deli sandwiches (turkey, chicken, tuna, fish), falafel, salads — Greek, Caesar RENTALS: Boogie boards, bikes, chairs, umbrellas FOR SALE: Beach toys, cameras (disposable), sand toys, shirts, souvenirs, sunglasses. sunscreen, swim trunks, towels Award of CDM Concession March 28, 2006 Page 3 2 — Michael and Kathleen Flamson — The Flamsons currently operate the Crystal Cove Shake Shack and The Place Sports Bar and Grill. The Flamsons come with good recommendations from neighbors and clients. TERM: 10 year lease term with rent credit for tenant improvements. RENT: 1" Tier (under $240,000 gross) _ $5,000 base rent plus 150/0 of gross; 2nd Tier ($241,000 - $300,000 gross) _ $5,500 base plus 17% of gross; 3`d Tier ($301,000 and above) _ $6,000 base, 18% of gross. Therefore, $41,000 1yr. MENU: Cheeseburgers, hamburgers, chicken burgers, veggie burgers, turkey burgers, hot dogs, turkey dogs, patty melts, philly steaks, zucchini fries, french fires,onion rings, chicken strips, grilled cheese, burritos, tacos, taquitos, quesadilla, sandwiches (tuna, turkey, roast beef, vegetarian), salads (chefs, chicken chef's, chicken taco, Cobb, Caesar, dinner), shakes and smoothies (strawberry, vanilla, banana, peach, pineapple, coconut, peanut butter, chocolate oreo, raspberry, "monkey flip ") RENTALS: Boogie boards, chairs, umbrellas, volleyballs FOR SALE: Hats, smashball, sunscreen, sweatshirts, T- shirts, towels 3 — Kilmer Enterprises Inc. — Gordon and Doug Kilmer (Kilmer Enterprises, Inc) ran the previous concession at Corona del Mar, and is well- regarded in the Corona del Mar community. TERM: 5 -year lease term. Kilmer Enterprises will pay for tenant improvements RENT: $75,000 or 35% of total gross revenues, whichever is higher. Therefore, $84,000. MENU: Hamburger, cheeseburger, veggie burger, cheese sandwich, chicken sandwich, hot dog, corn dog, French fries, French fries w /chili, chili, burritos, tortilla strips, tortilla strips w /cheese, tortilla strips w /chili, churros. RENTALS: Boogie boards, chairs, umbrellas FOR SALE: Bait, batteries, board wax, cameras (disposable), film, firewood, flying saucers, utensils, hats, lighter fluid, matches, paper plates, sand buckets, spoons, sunglasses, sunscreen, towels. 4 — Gina Rhodes /Fernando Iniquez — Gina Rhodes currently operates the Newport Beach Little League Snack Bar located at the athletic fields at Lincoln Middle School. Ms. Rhodes, and her father, Mr. Iniguez, also own and operate the Mail Room in Corona del Mar. Ms. Rhodes comes with good recommendations from clients. TERM: 10 year lease term plus five year option. Rent credit for tenant improvements. RENT: $80,000 or 35% of the gross including rental equipment, whichever is higher. Therefore, $84,000. MENU: Cheeseburgers, hamburgers, kids burger, hot dogs, chili cheese dog, corn dog, chicken fingers, sandwiches (ham and cheese, chicken salad, tuna salad), salads (Chinese chicken, Cobb, chicken, Santa Fe), Smoothies. RENTALS: Badminton sets, blankets, boogie boards, chairs, fins, paddleboards, picnic baskets, playpens, sandpail sets, skimboards, umbrellas, volleyballs FOR SALE: Firewood Selection /Recommendation. Staff was pleased with the quality of responses to the RFP. All of the four proposers had strong concepts and good ideas about the concession. We believed that each proposer brought individual strengths worthy of consideration. While pricing was important to us in making our recommendation, so was experience in beach concessions. We concluded that, while Ms. Rhodes and the Kilmer proposal included identical rent payments, the tenant improvement cost provided 3 Award of CDM Concession March 28, 2006 Page 4 by Kilmer and the good track record of Kilmer's work at CDM State Beach warrants Kilmer's selection. Again, we note how pleased we were with each of the proposers' concepts and presentations. We thank them for the time and effort that went into their proposals. Proposed Terms of Agreement. If the Council approves this item, it would also authorize the Mayor to enter into a contract based substantially on the following terms that would be addressed within a formal Concession Agreement: • TERM: A single term of 5 years, with two 5 -year options. • RENT: $80,000 /yr or 35% of gross sales, whichever is greater • TENANT IMPROVEMENTS: Concessionaire must pay the cost of tenant improvements — no rent credit offered. • INSURANCE: Concessionaire must provide insurance as required by the Request for Proposal, and as approved by the City's Risk Manager. • HOURS OF OPERATION: To be determined based on discussions with selected vendor • ENVIRONMENTAL PROTECTION Concessionaire must install a grease interceptor, as required by the City of Newport Beach Municipal Code; use food packaging consistent with good environmental practices, including prohibiting Styrofoam from the premises, minimizing the use of PVC plastics, and providing both trash receptacles and places for customers to dispose of recyclable products. Prepared by: Submitted by: Evely Tseng, In Contract Contract Administrator Dave Kiff, Assistant Ci y Manager Attachments: Request for Proposals Draft of Concession Agreement Terms H CITY OF NEWPORT BEACH REQUEST FOR PROPOSALS Concession Operations and Tenant Improvements at Corona del Mar State Beach Deadline for Proposals December 2, 2005 at 4:00 PM Informational Meeting Fire Conference Room City Hall 3300 Newport Blvd. Newport Beach, CA 92658 Wednesday, November 30, 2005 1:00 P.M. REQUEST FOR PROPOSALS ( "RFP ") Concession Operations and Tenant: Improvements at Corona del Mar State [Beach The City of Newport Beach ( "City ") is soliciting proposals in order to identify individuals and /or businesses qualified to operate and manage a renovated concession located at Corona del Mar State Beach ( "CDM State Beach ") (See Attachment 1). CDM State Beach is part of the California State Parks system, but it is managed and operated by the City. This RFP is designed for those interested in entering into a contractual relationship with the City ( "Concession Lease Agreement ") to lease the City- managed concession facility. The selected concessionaire shall be required to assist in the completion of the tenant improvements and operate the facility according to the terms of the City's Concession Lease Agreement. I. RFP TERMS AND CONDITIONS A. This RFP does not commit the City to award a contract. No other party, including any applicant, is intended to be granted any rights hereunder. Proposals which, in the sole discretion of the City, do not meet the minimum requirements, including without limitation the minimum proposal submission requirements, will not be reviewed. This RFP and the process it describes are proprietary to the City and are for the sole and exclusive benefit of the City. Any response, including written documents and verbal communication by any applicant to this RFP, will become the property of the City and if required by law may be subject to public disclosure by the City or any authorized agent of the City. The City is not liable for any costs associated with the development, preparation, transmittal or presentation of any proposal or material(s) submitted in response to this RFP. B. It shall be the applicant's responsibility to review and verify the completeness of its proposal. The City may request additional or clarifying information or more detailed information from any applicant at any time, including information inadvertently omitted by a applicant. The City may request to inspect properties or contact clients referenced in the applicant's proposal. The City also reserves the right to conduct investigations with respect to the qualifications of an applicant. C. Verbal communication made by any City employee or agent of the City with respect to this RFP is not binding and shall not in i W any way be considered as a commitment by the City. Only written responses to questions submitted in writing to the City or written addenda to this RFP issued by the City may be relied upon. D. City employees and officials are prohibited from responding to this RFP or being a party, direct or indirect, to any contract resulting from the RFP, and no proposal shall be accepted from, or contract awarded to, any City employee or official who submits a proposal or solicits any contract in which he or she may have any direct or indirect interest. No applicant may submit more than one proposal pursuant to this RFP. Entities that are legally related to each other or to a common entity may not submit separate proposals. Any proposal may be rejected because it, in the City's sole judgment, violates these conditions or the spirit of these conditions. E. The City reserves and may exercise the following rights and options with respect to evaluation of proposals and selection for negotiation: To reject any and all proposals and re -issue the RFP at any time prior to execution of a final contract if, in the City's sole discretion, it is in the City's best interest to do so; ii. To supplement, amend, substitute or otherwise modify this RFP at any time prior to selection of one or more respondents for negotiation and to cancel this RFP with or without issuing another RFP; iii. To accept or reject any or all of the items in any proposal and award the contract in whole or in part if it is deemed in the City's best interest to do so; iv. To reject the proposal of an applicant that, in the City's sole judgment, has been delinquent or unfaithful in the performance of any contract with the City or other government entity, is financially or technically incapable or is otherwise not a responsible applicant; V. To reject as informal or non - responsive any proposal which, in the City's sole judgment, is incomplete, is not in conformity with applicable law, is conditioned in any way, z deviates from this RFP or contains erasures, ambiguities, alterations, or items of work not called for by this RFP; vi. To waive any informality, defect:, non - responsiveness and/or deviation from this RFP that is not, in the City's sole judgment, material to the proposal; vii. To permit or reject, at the City's sole discretion, amendments (including information inadvertently omitted), modifications, alterations and /or corrections of proposals by some or all of the respondents following proposal submission; viii. To request that some or all of the applicants modify proposals based upon the evaluation of the City. F. The City may enter into negotiations for a contract, on terms and conditions satisfactory to the City with one or more selected applicant(s). However, the City reserves the right to terminate any negotiations at any time or conduct simultaneous, competitive negotiations with multiple applicants. The City reserves the right to negotiate acceptable terms in an otherwise unacceptable proposal. Such negotiations may result in changes in terms material to this RFP; in such an event, the City shall not be obligated to inform other applicants of the changes, or permit them to revise their proposals accordingly, unless the City, in its sole discretion, determines that doing so and permitting such is in the City's best interest. Should negotiations not prove satisfactory with the selected applicant(s), the City reserves the right to discontinue negotiations. Additional firms may be asked to enter into negotiations, and /or the City may solicit new proposals. II. BACKGROUND The City's contractor is currently upgrading the public amenities at CDM State Beach. The area will be improved with replacement infrastructure and visitor - serving amenities such as public restrooms, showers, a lifeguard facility, and landscaping. The facility shall include a self- contained concession area intended to provide food /drink service and beach rentals to beach visitors. For more information about the renovation, please see the City's website (www. city. newport- bea ch. ca. us then 'Projects" then 'Big Corona State Beach "). CDM State Beach includes open shoreline, day use 3 IN parking, and nearby City parks. CDM State Beach also hosts major special events, including an annual sandcastle building competition and an antique car show. CDM State Beach is one of the community's most family - friendly beaches, because it has ocean -level parking and (typically) gentle surf conditions. The City is pleased to present this opportunity for interested individuals and /or businesses to submit proposals and qualifications for the operation of the beach concession facility that will be constructed as part of the renovated facilities. It shall be the responsibility of the selected applicant to install fixtures and equipment, and to operate the concession on behalf of the City. The concessionaire shall have the sole responsibility to finance or purchase all tenant fixtures located within the renovated facilities. Construction of the facility is scheduled to be completed by May 2006, and the concessionaire shall work with City's contractor regarding the installation of fixtures and equipment and necessary tenant improvements. III. PROJECT DESCRIPTION The concession facility is intended for food and drinks as well as beach rentals, such as umbrellas and body boards. The concession area will be approximately one thousand forty -three (1,043) square feet in size and centrally located near the Lifeguard office. All utility services will be stubbed in, however, it will be the responsibility of the concessionaire to install service runs, including gas, water, and electricity in addition to completing interior finishes, equipment, and other tenant improvements (see Attachment 2 for detailed plans of the property). The concessionaire will be required to install adequate ventilation to operate a cooking grill. IV. CONCESSION OPERATIONS Concession operations are a key component to the overall character of CDM State Beach. The selected concessionaire will be required to satisfy the following conditions as a part of the concession operations: Personnel The concessionaire will be responsible for hiring the necessary personnel to conduct the daily operation of the concession. The concessionaire will comply with all federal, state, and local laws related to minimum wage, social security, nondiscrimination, ADA, unemployment compensation, and a workers' compensation. If required by the City, employees shall wear a uniform and /or identification badge. Operating Hours Hours of operation may vary, based upon seasons and weather. Concessions typically operate daily during summer months, beginning Spring Break and continuing through Labor Day. The primary operating hours are generally early morning to dusk. Off - season operations, particularly on weekends and warmer weekdays, is expected. Operations during cool off- season days is subject to discussion with city officials. The City does not intend to ask the concessionaire to remain open on days in which it is clearly not profitable to do so. The City invites proposers to identify specific hours of operation that will provide good customer service and concessionaire profitability. Menu Items The concessionaire is expected to serve quality food and drinks to meet the needs of the visiting public. Simple menu items, such as pizza, hamburgers, hot dogs, fries, and other snacks should be offered at prices consistent with prices charged at similar beach concessions (such as those located at San Clemente, Huntington Beach and Seal Beach). Beverages should include sodas, juice drinks, and bottled water. Beer and wine sales are currently not permitted by the City. Food Packaging and Debris The concessionaire shall use food packaging consistent with good environmental practices, including prohibiting Styrofoam from the premises, minimizing the use of PVC plastics (especially plastic bags for carrying food), and providing both trash receptacles and places for customers to dispose of recyclable products from the concession. Merchandise and Beach Rentals Beach rentals are very popular and considered an important element of the concession operation. The concessionaire is expected to offer rentals of such items as umbrellas, beach chairs, and body boards. Additional merchandise, such as sunscreen, hats, and other beach related products are recommended by the City to be made available for sale. 5 V. CONSIDERATION & TERM The City envisions that the concessionaire will pay a base rent plus a percentage rent to the City as consideration for the concessionaire's use of the facility and the property. Proposals should include the proposed base rent, percentage rent, and total rent anticipated to be paid for an initial five (5) year term. The City envisions intends to grant the concessionaire a five (5) year term, with one or more additional five (5) year option periods. The amount of option periods shall be negotiated with the proposers as a part of the City's decision process in advance of awarding the concession. The City will reserve the right to terminate the Concession Lease Agreement at any time in the event of the concessionaire's non - performance or default of the Concession Lease Agreement terms. All fixed facility improvements (fixtures, fixed cabinetry, shelving, etc) may become City property, at City's option, following the termination of the Concession Lease Agreement. Specific language in this regard shall be included in the Concession Lease Agreement. VI. QUALIFICATIONS To ensure a high - quality level of operation for the facility, applicants must demonstrate minimum experience and qualifications. Applicants must complete the City's Vendor Application Form (see Attachment 3) and provide evidence of the following: • Experience in successfully operating and managing a similar type of business for a minimum of three (3) years. • Fiscal solvency and capacity to complete necessary tenant improvements. • Demonstrated track record of being an equal opportunity employer. • Must not be currently indebted to the federal government, State of California, or the City of Newport Beach for non - payment of taxes, fines, judgments, liens, or fees. The applicant or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act "), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the work to be performed pursuant to this RFP, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. If subject to the Act, the applicant shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate rejection of the applicant's proposal, or, if the Concession Lease Agreement is already entered into with the applicant, immediate termination of that Agreement by City. The applicant shall be required to indemnify, defend and hold harmless City for any and all claims for damages resulting from the applicant's violation of this provision. Additional copies of this RFP, as well as copies of documents referenced in this RFP, may be obtained online at www. city. newport- beach. ca. us. Copies may also be obtained at the Revenue Division, City of Newport Beach, 3300 Newport Blvd., Newport Beach, CA 92658 -8915. VII. PROPOSAL INSTRUCTIONS Submission Date and Requirements One original and five unbound copies of completed proposals must be submitted to: Evelyn Tseng Revenue Division City of Newport Beach 3300 Newport Blvd. P.O. Box 1768 Newport Beach, CA 92658 -8915 The following conditions apply to this submission: • Proposals must be submitted by 4:00 PM, on December 2, 2005. • Proposals must be signed, in ink, by an individual duly authorized to bind the applicant and must be sealed and labeled on the cover with the RFP title and applicant's name. • Proposals must be 1 1/2 spaced (or double- spaced) and in a font size of 12 or larger. Proposals typed single - spaced or in a font size smaller than 12 will not be accepted. • Proposals or proposal components will not be accepted via facsimile (fax) transmission. • Proposals shall remain binding for one hundred twenty (120) days from the date of proposal submission. • The City reserves the right, at its sole discretion, to reject and return, without evaluation, any proposal received after the proposal submission time and date, whether it is delivered by mail or otherwise. VIII. REQUIRED ELEMENTS OF PROPOSALS Applicants may submit any information they deem necessary and appropriate for the City to fully and completely evaluate their qualifications. The proposal must, at a minimum, include the following general information: 1. Vendor Application (Use form listed as Attachment 3) 2. Checklist for a Complete Submission (Use form listed as Attachment 4) 3. Description of the applicant's business structure, key staff and their qualifications. 4. Description of the applicant's relative experience in operating a concession or other similar business enterprise, including relative size of business operated, type of retail sales, etc. 5. An audited financial statement (or a financial statement prepared by a certified public accountant) from the last full year of operation of a similar business enterprise. If you wish for this financial information to be kept out of the public record, please submit ONE COPY in a separate envelope, with the words FINANCIAL INFORMATION' along with your name on the envelope. This information will be held apart from the proposal and will be returned upon completion of the selection process. 6. A proposed annual budget for the operation of the beach concession for the first five years. Include a brief narrative that generally describes the anticipated expenses, revenues, and net income for each year. 8 7. A sample menu, including proposed prices, together with a list of merchandise available for rent and /or sale. 8. A proposed rent structure (base rent and /or percentage rent) and proposed rental amount to be paid to the City. 9. At least three persons or businesses that have first hand knowledge of the applicant's ability to successfully operate and maintain a high - quality beach concession. If possible, at least one reference should be a public entity other than the City of Newport Beach. IX. ADDITIONAL REQUIREMENTS Insurance The concessionaire must meet all the insurance requirements required by the Concession Lease Agreement. (See Attachment 5 for insurance language). All applicants are encouraged to contact their insurance carriers during the review of qualifications stage to ensure that the insurance requirements can be met if the applicant is selected for negotiation of a contract. Codes and Licensing The concessionaire must comply with Orange County Public Health Codes regulating food establishments, and the concession must meet applicable City Codes for Plumbing, Building, Electrical, and l=ire. X. REVIEW OF PROPOSAL RESPONSES Review process All proposals received by the deadline will be evaluated by a committee ( "Review Committee ") established by the City Manager or his designated representative. Upon the review and discussion of the quality and responsiveness of the proposals received, the Review Committee will make recommendations to the Newport Beach City Council. The City discourages any proposer's advocacy before Members of the City Council until such time as the Review Committee has brought forth its recommendation to the City Council. E Notification of Awards The successful applicant will be required to execute the Concession Lease Agreement with the City, which is subject to formal approval by the Newport Beach City Council. The City anticipates that the selected applicant will participate in the completion of all tenant improvements of the concession facility and open for business during the month of May 2006. ATTACHMENTS 1. Location Map for Concession 2. Facility Floor Plan and Elevations 3. Vendor Application Form 4. RFP Submission Checklist 5. Summary of City of Newport Beach Insurance Requirements 10 ATTACHMENT 1 CORONA DEL MAR STATE BEACH SITE PLAN (ATTACHED) a 121 E, ®r 2 cz, El Fj -E-1 c-. B El Ei E EIS El it i 11 H p 81 CORONA DEL MAR STATE BEACH IMPROVEMENTS J..ORrENSFNQMMRM Cm�N �POUBEAGK .... .. :;W4: ATTACHMENT 2 CORONA DEL MAR STATE BEACH FLOOR AND MISCELLANEOUS PLANS (ATTACHED) 2Y -4' < -Y m- o_____ : 8 rd -b -- �- ��°i' la ®om ao ®a o 0 oaa aa0 © 0 0 0 ac_ c0 0 0 • gY+ � io � ° �;n �� � iE nCC �Q p � M�o$� S �N �� $ Deg m CORONA DEL MAR STATE BEACH IMPROVEMENTS P� I RD���O�°'�6'° C rTY OF NEWPORT BEACH iS ; v O 3 canw:..w, .w.ro,... A. 9 ••• fL00R PLAN Imo` X t�h•1� \ —�,Y�� a\u�� wxco_�__\m _u�= uuv:o:nwti�� Qw w�uuuvuu\mhmu�c�.av�- 9 F.1'Vf��� 0�3 CORONA DEL MAR STATE BEACH IMPROVEMENTS CITY OF NEWPORT BEACH nz y y i1088 ➢1S�OA(iENgIJCHWSROTiQ�Ii E | § | ƒ m7• � A ° � . - / , rJ`\� /q /I# 7 \5 \!3-]), a § . ( \ ) CORONA DEL MAR x _ \2\ STATE e&HNE� . ' y _ . 2 }_|,\ �..� | § . � �\ .ƒ - � !| Jgal * (- /) \ , ) � � | ( � � : \ � | / � i § o. \! •m e ! m£ NDE L a s se a� _ m >_nm __&,_ ® _ _ .. : MM X - }} 1 (� Xy6: Qn 855� HFR��B,i ��gagmR'` A 3 p� A�BqR yy S8 R'S F B A S 1 � - I ul —OJ • os m ( y I an I 7 i 1 a say — sp$ Q R3 4e6q " d 88�eR 3e 5�R sg M a c 0 0 c o 0 0 0 0 2 y 3 e C1 p 9 `y�qp 1 qA F.0 3gA3 'FE K ¢£ E gg qg ?B e$ RAF Yoga 'Rs! $'g S CORONA DEL MAR STATE BEACH IMPROVEMENTS ,a ROBBINS IORGPNS NGfl � z CITY OF NEWPORT BEACH «unw� � ®P::::: •••••• ••••••, ',• l LfffGUARD /CONCESSION BLDG - ELECTPLAN PAB iY PBSGCUIFB � 1 ATTACHMENT 3 CITY OF NEWPORT BEACH VENDOR APPLICATION FORM TYPE OF APPLICANT: ❑ NEW [] CURRENT OPERATOR Legal Contractual Name of Business: Owner's Name: Business Mailing Address: City, State and Zip Code: E -Mail Address Phone: Fax: General Business Contact Person for Business Operations: Title: E -Mail Address for Business Operations Business Telephone: Business Fax: Fiscal Contact Person for Fiscal Operations: Title: E -Mail Address for Fiscal Operations _ Business Telephone: Business Fax: Is your business: (check one) ❑ NON PROFIT CORPORATION ❑ FOR PROFIT CORPORATION Is your business: (check one) ❑ CORPORATION ❑ LIMITED LIABILITY PARTNERSHIP ❑ INDIVIDUAL ❑ SOLE PROPRIETORSHIP ❑ PARTNERSHIP ❑ UNINCORPORATED ASSOCIATION Names & Titles of Co- Owners, Partners, or Board Members (Also list Names & Titles of persons with written authorization /resolution to sign contracts) Names Title Phone Names and Titles of Business Officers Names Title 19 ITS = Does business have any liens or claims? (If so, please indicate by whom and specify lien or claim, including any tax delinquencies) Name of Company Claim Lien Amount Please provide the following: Federal Tax Identification Number: City of Newport Beach Business License Number: (If none, selected vendor must obtain a Newport Beach Business License prior to execution of contract.) ATTACHMENT 4 CORONA DEL MAR STATE BEACH CONCESSION RFP SUBMISSION CHECKLIST Name of Applicant ❑ Vendor Application ❑ RFP Checklist ❑ Business Structure, Key Staff and their Qualifications ❑ Description of Experience ❑ Financial Information ❑ Budget Information ❑ Sample Menu ❑ References ATTACHMENT 5 SUMMARY OF CITY OF NEWPORT BEACH INSURANCE REQUIREMENTS The following insurance language will be included in the Concession Lease Agreement and will be non - negotiable. All applicants should contact their insurance carriers to ensure that the insurance requirements can be met if the applicant is selected before submitting a proposal to the City: In addition to insurance required of Concessionaire to be obtained, provided, and maintained during the construction of the Improvements, and without limiting Concessionaire's indemnification of City, Concessionaire shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Concessionaire shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to execution of this Agreement by the City. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. D. Food Preparation. Concessionaire shall install at concessionaire's own expense any fire protective systems in grill, deep fry, and cooking areas which are required by city, county, and state fire ordinances, and such system when installed shall qualify for full fire protective credits allowed by the fire insurance rating and regulatory body in whose jurisdiction the Leased Area is located. E. Coverage Requirements. i. Workers' Compensation Coverage. Concessionaire shall maintain Workers' Compensation Insurance at statutory limits and Employer's Liability Insurance at One Million and OO /100 Dollars ($1,000,000.00) for his or her employees in accordance with the laws of the State of California. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (ten (10) calendar days written notice of non - payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for all losses that relate in any way to this Agreement. ii. General Liability Coverage. Concessionaire shall maintain commercial general liability insurance in an amount not less than One Million and OO /100 Dollars ($1,000,000.00) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. iii. Automobile Liability Coverage. Concessionaire shall maintain automobile insurance covering bodily injury and property damage for all activities of the Concessionaire arising out of or in connection with the services to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than One Million Dollars and OO /100 Dollars ($1,000,000.00) combined single limit for each occurrence. iv. Fire and Extended Coverage. Concessionaire shall maintain fire and extended coverage insurance, together with insurance against vandalism, theft and malicious mischief, on the improvements and fixtures, alterations, trade fixtures, signs, equipment, personal property and inventory on or upon the Leased Area from loss or damage to the extent of their full replacement value. v. Concessionaire shall maintain loss of rent insurance insuring that the Base Rent will be paid to City for a period up to six (6) months if the Premises are destroyed or rendered unusable or inaccessible for commercial purposes by a risk insured under a special form property coverage policy including vandalism and malicious mischief endorsements. E. Endorsements. Each insurance policy shall be endorsed with the following specific language: L The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Concessionaire. ii. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Concessionaire's operations or services provided to City. Any insurance maintained by City, including any self- insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (ten (10) calendar days written notice of non- payment of premium) written notice has been received by City. F. Timely Notice of Claims. Concessionaire shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Concessionaire's performance under this Agreement. G. Additional Insurance. Concessionaire shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. H. Subcontractors. In the event Concessionaire subcontracts, the contract between Concessionaire and such subcontractor shall require the subcontractor to maintain the same policies of insurance that Concessionaire is required to maintain pursuant to this Section. CONCESSION AGREEMENT TERMS Corona del Mar Concession TERM Term of Lease — 5 years Option to Extend — 2 five -year periods RENT The greater of Base Rent or Percentage Rent, to be paid on a monthly basis. Base Rent - $80,000 /yr Base Rent adiusment — annual cpi increase Percentage Rent — 35% of gross sales USE Hours of Operation — To be determined based on discussions with selected vendor. INSURANCE In addition to insurance required of Concessionaire to be obtained, provided, and maintained during the construction of the Improvements, and without limiting Concessionaire's indemnification of City, Concessionaire shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Concessionaire shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to execution of this Agreement by the City. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. 1 C. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. D. Food Preparation. Concessionaire shall install at concessionaire's own expense any fire protective systems in grill, deep fry, and cooking areas which are required by city, county, and state fire ordinances, and such system when installed shall qualify for full fire protective credits allowed by the fire insurance rating and regulatory body in whose jurisdiction the Leased Area is located. E. Coverage Requirements i. Workers' Compensation Coverage. Concessionaire shall maintain Workers' Compensation Insurance at statutory limits and Employer's Liability Insurance at One Million and 00/100 Dollars ($1,000,000.00) for his or her employees in accordance with the laws of the State of California. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (ten (10) calendar days written notice of non - payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for all losses that relate in any way to this Agreement. ii. General Liability Coverage. Concessionaire shall maintain commercial general liability insurance in an amount not less than One Million and 00/100 Dollars ($1,000,000.00) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. iii. Automobile Liability Coverage. Concessionaire shall maintain automobile insurance covering bodily injury and property damage for all activities of the Concessionaire arising out of or in connection with the services to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than One Million Dollars and 00/100 Dollars ($1,000,000.00) combined single limit for each occurrence. iv. Fire and Extended Coverage. Concessionaire shall maintain fire and extended coverage insurance, together with insurance against vandalism, theft and malicious mischief, on the improvements and fixtures, alterations, trade fixtures, signs, equipment, personal property and inventory on or upon the Leased Area from loss or damage to the extent of their full replacement value. v. Concessionaire shall maintain loss of rent insurance insuring that the Base Rent will be paid to City for a period up to six (6) months if the Premises are destroyed or rendered 2 r. .gym unusable or inaccessible for commercial purposes by a risk insured under a special form property coverage policy including vandalism and malicious mischief endorsements. E. Endorsements. Each insurance policy shall be endorsed with the following specific language: i. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Concessionaire. ii. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Concessionaire's operations or services provided to City. Any insurance maintained by City, including any self- insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (ten (10) calendar days written notice of non - payment of premium) written notice has been received by City. F. Timely Notice of Claims. Concessionaire shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Concessionaire's performance under this Agreement. G. Additional Insurance. Concessionaire shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. H. Subcontractors. In the event Concessionaire subcontracts, the contract between Concessionaire and such subcontractor shall require the subcontractor to maintain the same policies of insurance that Concessionaire is required to maintain pursuant to this Section. C1