FOR ON THE. Attn: Trolley Kiosk

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1 REQUEST FOR PROPOSALS FOR RETAIL KIOSKK ON THE SANTA MONICA PIER Proposals Due: 4 PM, November 15, 2012 Attn: Trolley Kiosk RFP City of Santa Monica 1901 Main Street, Ste E Santa Monica, CA P age

2 I. INTRODUCTION 1.0 Opportunity The City of Santa Monica invites competitive proposals from interested and qualified entities ( Operator ) to operate from a pedestrian oriented feet and is located near the entrance to the parking commercial kiosk on the Santa Monica Pier known as the Trolley Kiosk. Trolley Kiosk is approximately 100 square area. Photos of the Concession Area and a site map are contained in Exhibit A. The selected Operator will be responsible for providing the design and construction of all proposed tenant improvements as well as any equipment, furnishings, and appliances necessary to its operations. 2.0 Preferred Uses The Santa Monica Pier Leasing Guidelines specifies the preferred uses for each commercial opportunity on the Pier. The Preferred Use for the Trolley Kiosk is Pierr related souvenir and sundries featuring Pier trademark licensed products. Other visitor serving servicess will also be considered. 3.0 Local and Non Formula Preferences The leasing on the Pier is subject to a preferencee for locally owned, independent, non formula businesses and activities that are financiallyy and operationally capable of providing the Preferred Uses. A formula business is that which requires by contractual or other arrangement the maintenance of standardized services, décor, uniforms, facility design and format substantially identical to another operation. 2 P age

3 II. PROPOSAL SUBMISSION PROCEDURE AND DEADLINE All proposals must utilize the Proposal Submission Form (Exhibit C) which contains the questions relating to Operator s organization, personnel, and experience that would substantiate its qualification and capabilities to perform the services required under this RFP. Proposals must be received in a sealed envelope no later than 4 PM. on November 15, Respondents must submit five (5) sets of the proposal by mail or by hand to: Attn: Trolley Kiosk RFP City of Santa Monica 1901 Main Street, Ste. E Santa Monica, CA Proposals received after the time established for receiving proposals will not be considered. Facsimile Proposals are not acceptable. This Request for Proposals (RFP) contains the questions and informational requirements for respondents to address. Submissions must fully address all items in the contents of the submittal section. III. GENERAL REQUIREMENTS 1.0 Minimum Qualification Operator must demonstrate to the satisfaction of the City that it has the relevant experience, financial capability and appropriate concept to successfully operate a Concession Opportunity on the Pier. The following minimum requirements and qualifications have been established in order for Operators to be considered for this Concession: Operator shall have two or more years of continuous experience within the last five (5) years in the ownership, management or operation of a retail or food service establishment (experience may include operation of a vending cart.) Operator must have demonstrated managerial, and staffing resources to maintain high quality, daily operation. Operator must have demonstrated financial capacity to finance improvements and operating costs for the business that it proposes. 2.0 Term It is anticipated that, if granted, the License will be for a period of up to three years. 3 P age

4 3.0 Monthly License Fee The Operator shall be expected to pay the City the greater of monthly minimum/base rent or ten percent (10%) of gross sales for each calendar month. Minimum/Base Rent July, August, September October, November, December January, February, March April, May, June $1, per month $1, per month $ per month $1, per month Licensee shall be required to provide to the City, along with the Monthly License Fee, a written report signed by the Licensee, showing the gross sales made in the preceding calendar month. 4.0 Design and Tenant Improvement The costs of designing and constructing improvements including signage to the Kiosk are to be borne solely by the Operator. Modifications to the space including signage will require review and approval by the City as landlord and by the City through its regulatory capacity and may include review by the Landmark s Commission. 5.0 Utilities Electric service is provided and paid for by the City and is included in the license fee charged. All other utility connections and charges including phone/internet service shall be the responsibility of the Operator if selected. 6.0 Pier Trademarks, Logos and Trade Names Operator acknowledges that the City and Santa Monica Pier Corporation (SMPC) have copyrighted the Santa Monica Pier trade name, Santa Monica Pier bridge sign and Santa Monica Pier logo. Any and all Pier Logo merchandise displayed and sold from the Concession Area shall consist solely of licensed products approved by the City and SMPC. 7.0 Insurance and Indemnification If selected, before beginning operations, Licensee shall procure and maintain at Licensee s own expense for the duration of the agreement, the following insurance against claims for injuries to persons or damages to property which may arise from or in connection with the possession, occupancy, operation and use of the License Area by Licensee, Licensee s agents, representatives, employees or subcontractors. Comprehensive/Commercial General Liability of not less than $1,000,000 per occurrence. Workers Compensation and Employer s Liability. Personal Property Insurance coverage in the amount of at least 100% of the full replacement value. 8.0 Maintenance Operator shall be responsible at its sole cost and expense for keeping the Concession Area 4 P age

5 in a clean and attractive condition. Operator will not allow boxes, cartons, barrels or other similar items to remain in view of public areas. 9.0 Operator s Employees The Operator is an independent Licensee and not an employee of the City. Employees of the Operator are not employees of the City. Persons working for the Operator shall be neat and clean at all times and shall wear some distinctive article of apparel that identifies them as Operator employees. Employees shall be courteous to all guests and patrons of the Pier, shall be knowledge about the Pier in order to provide guests with basic information including Pier history, special events and location of restrooms, ATMs, first aid services, etc Merchandise and Pricing a) The City serves a diverse clientele of people from varying socio economic levels and merchandise and pricing should reflect that diversity. b) The City reserves the right to approve the products offered for sale by the Operator. c) The Operator shall agree to withdraw from sale any items disapproved by the City. d) The City in writing must first approve changes to the approved list of items to be sold. e) The Operator shall, at all times, display to the public prices for the sale of all merchandise Deliveries Delivery Hours on the Pier are from 5 AM to 10 AM daily. Delivery vehicles may not exceed weight limits of the Pier Operating Hours The Operator must submit a proposed time schedule for weekdays, weekends including Sundays, and holidays. This must be included in your proposal document. Minimum Operation Days and Hours: o Summer Season: May 1 through September 30 Monday to Thursday 11 AM 8PM; Friday to Sunday 11 AM 10 PM o Remainder of the Year: Monday Sunday (and holidays) 11 AM 7 PM 13.0 Cash Register The Operator shall install a mechanical or electronic cash register system, shall activate the same at the conclusion of every sale, and shall make the resulting register record available to the City for audit purposes Compliance with Governmental Codes, Regulations, and Licenses Operator shall operate in compliance with all governmental codes and regulations and shall obtain, at its expense, any and all licenses and permits necessary for the operation of its business, including, without limitation, a City of Santa Monica Business License Taxes Private businesses operating from City owned properties are obligated to pay all taxes, 5 P age

6 assessments, or charges that at any time may be levied by the State, County, City, or any tax or assessment levying body including Los Angeles County possessory interest fees which shall subject Tenant to liability for the payment of property taxes levied on such possessory interest Statement of Rights and Understanding The City reserves, and may in its sole discretion, exercise the following rights and options with respect to this Request for Proposals (RFP): a) to accept, reject or negotiate modifications to any and all proposals as it shall, in its sole discretion, deem to be in its best interest; submission of an RFP does not bind the City to any action or to any party. Submissions do not create or assume any relationship, agency or obligation by the City, its officers or employees. b) to issue additional solicitations for proposals and/or addenda to the RFP; c) to award the Concession to the Operator the City has determined to be most responsive, who has submitted a complete proposal which meets the specifications and requirements which are deemed by the City most advantageous to and in the best interest of the City; d) to negotiate with any one or more of the respondents; e) to waive any irregularities in any proposal; f) to select any proposal as the basis for negotiations; and to negotiate with respondents for amendment or other modifications to their proposals; g) to conduct investigations with respect to the qualification of each respondent; to obtain additional information deemed necessary to determine the ability of the respondent to carry out the obligations of the Concession. This includes information needed to evaluate the experience and financial capability of the respondent Cost Liability The Operator shall bear all costs associated with submitting the proposal. The City of Santa Monica does not pay finder's fees or commissions for opportunities arising under this RFP. Any such compensation must be negotiated between the Operator and his or her agent or broker, if any Review and Selection Procedure Proposals will be judged according to a combination of criteria to include: a) Thoroughness and completeness of proposal; responsiveness to RFQ requirements. b) Applicability and quality of Operator's relevant experience and references. c) Feasibility (including financial feasibility) of proposed operation and management. d) Compatibility of the proposed operation (including design compatibility) with the Santa Monica Pier. e) Competitiveness and appropriateness of proposed revenue to the City. f) Preference will be given to local, independent and non formula business that are financially and operationally capable of providing the preferred uses detailed in this Request for Proposal. 6 P age

7 19.0 Additional Information Questions regarding this RFP may be directed to: Elana Buegoff, Pier Leasing Manager (310) ; Questions regarding business licenses may be directed to: City of Santa Monica Business License Office (310) Question regarding Santa Monica Pier Trademarks and Logos may be directed to: Santa Monica Pier Corporation (310) Exhibits A. License Area/Photos B. Proposal Submission Form 7 P age

8 EXHIBIT A CONCESSION AREA Kiosk #2 (Trolley Kiosk) North East West South 8 P age

9 SITE MAP Trolley Kiosk 9 P age

10 EXHIBIT B PROPOSAL SUBMISSION FORM: Trolley Kiosk All proposals must include this Proposal Submission Form containing the questions relating to Operator s organization, personnel, experience and concept that would substantiate its qualification and capabilities to perform the services required by the scope of the RFP. In filling out this Proposal Submission Form respondent may: (1) replicate this format, or (2) utilize this format and fill in the appropriate information, attaching extra pages when additional space is needed. If replicated, the respondent assumes all responsibility for ensuring that all sections and wording are replicated and all requested information is provided utilizing the required format. SECTION I. COMPANY INFORMATION Print Clearly or Type 1. Company Name as Submitted to IRS: 2. Form of Organization: Individual, Corporation, Partnership, Other (explain: ) 3. If Corporation, please complete the following: Organized under the Laws of: 4. Authorized Representative Name and Title: 5. Address of Company: 6. City / State / Zip Code: 7. Telephone Number and Fax Number: 8. Employer Tax Identification Number or Social Security Number: SECTION II. REFERENCES Industry References Please provide at least two industry references that can furnish the City information regarding organization or individual s experience in providing retail operations. Include contact names and phone numbers. This information will be used to evaluate each Operator's service history. 1. Contact Name: Telephone #: Brief Description of Relationship: 2. Contact Name: Telephone #: Brief Description of Relationship: Credit/Bank References Please provide at least two bank, lender or other financial institution references that can furnish the City with information regarding organizations or individual s accounts and credit history. Include contact names and phone numbers. 1. Contact Name: Telephone #: 10 P age

11 Brief Description of Relationship: 2. Contact Name: Telephone #: Brief Description of Relationship: Landlord References Please provide at least two recent landlord references (including current landlord if leasing). Include contact names, phone numbers and address of property leased. 1. Contact Name: Telephone #: Address of Property Leased: 2. Contact Name: Telephone #: Address of Property Leased: Section III. SUBMISSION REQUIREMENTS A) Statement of Interest: This signed letter should provide a statement of interest highlighting the Operator s qualifications, experience, and its understanding of the elements of this opportunity. B) Experience: Provide a detailed history and description of organization s or individual s experience in development and management of a similar operation including specific role and accomplishments, dates, size, type of operation, type of tenant improvement, and amount of annual revenues for the three (3) most current consecutive years for each operation. C) Concept: Provide a detailed description of the type of operation you propose including a list of merchandise you wish to sell with prices. D) Design: Provide a description and/or design drawing of the space indicating: Operational configuration including location of equipment; Proposed improvements or modifications to kiosk space, if any including fixtures, finish materials, signage/graphic images and other design elements. NOTE: All merchandise must be located on or inside of the kiosk. Free standing displays outside of the kiosk will not be permitted. E) Hours of Operation: What minimum hours of operation do you propose? F) Professional Standards: What standards do you have for ensuring a professionally run operation? G) Financial: How do your financial assets allow you to undertake this opportunity? Please provide the following: a) Financial Plan indicating the source and amount of funding to be used for improvements and working capital. b) ProForma statement providing detailed income and expenses for three years of operation. H) Please provide any comments and/or additional suggestion for consideration by the City. 11 P age

12 SECTION IV. Having examined and understood the terms, conditions and specifications, and being familiar with the general nature of this request for proposal, the following is hereby proposed for consideration and evaluation: Signature Authorized Representative Date Print Name and Title of Authorized Representative Proposals must be received no later than 4:00 P.M. on November 15, 2012 Attn: Trolley RFP City of Santa Monica 1901 Main Street, Suite #E Santa Monica, CA Remember to include five (5) complete sets of the proposal. 12 P age