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101-Staff Report.pdf
PUBLICWORKS DEPARTMENT
CITY HALL
1010300TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408)777-3354www.cupertino.org
CITYCOUNCILSTAFFREPORT
Meeting: March 1, 2011
Subject
CoffeeSocietyLease.
RecommendedAction
AuthorizetheCityManagertoexecuteaoneyearleasewiththeCoffeeSociety,withtheoption
grantedtotheCoffeeSocietytoextendthisinitialtermwithtwoadditional oneyearperiods.
Discussion
OnAugust23,2010,theCityissuedaRequestforProposalstooperateafoodandbeverage
businessinthe500squarefootcaféspaceoftheCupertinoLibrary.TheRFPwasadvertizedin
theWorldJournal,theSanJoseMercury,andtheCupertinoCourierwhereinterestedparties
were directedtotheCity’sweb siteforafull document.
Additionally,staffemailedapproximately81foodservicebusinessesandrestaurants,ofthe
nearly160foodbusinessesinCupertino,toadvisethemoftheavailabilityofthespaceand
directedthemtotheCity’swebsiteforthefullRFPdocument.Approximately62commercial
retail brokerswereadvisedaswell.
Finally,thoselocalbusinessownerswhoknewthespacemightbecomeavailableandwere
interestedinleasingit,were notified directly oftheRFP.
OnSeptember15,2010,theCityClerk’sofficehadreceivedthreeproposalsbythedeadlineof
3:00 p.m. Therespondentswereasfollows:
·Streeter&Sons,DBACoffeeSociety,Cupertino
·BonjourCrepes,Cupertino
·SangheeLee,SanJose
Aftercarefulconsiderationofthethreeproposals,Councilinstructedstafftoenterinto
negotiationswiththeCoffeeSociety.Suitabletermswereagreedto byCouncilinclosedsession
onNovember29,2010andaleasewassubsequentlypreparedandprovidedtoJackieStreeter,
owner oftheCoffeeSociety,for signature.
AttheDecember21,2010CouncilMeeting,Councilaskedformoretimetoreviewtheproposed
leasewiththeCoffeeSocietysoitwasthenbroughtbackforconsiderationatthemeetingof
January4,2011.Additionally,twoareasoftheproposedleasewiththeCoffeeSocietywere
identifiedforcorrectionandthosecorrectionsweremade.
OnJanuary4,2011,CouncilvotedtorejecttheproposedleasewithCoffeeSocietyandreopen
theRequestforProposals.TheCityofCupertinohasexaminedthepertinentcircumstances
surroundingthistransactionandhasgiveninstructionstotheirrealestatenegotiatorsinclosed
session. TheattachedleasewiththeCoffeeSocietyis nowrecommendedforapproval.
A summaryofthetermsofthis proposedleaseareasfollows:
·aoneyearleasewiththeCoffeeSociety,withtheoptiongrantedtotheCoffeeSocietyto
extendthisinitialtermwithtwoadditional oneyear periods
·thebaserentisestablishedforthefirstyearat$1,000permonth,followedby$1,050per
monthforthe secondyearand $1,100 permonthforthethirdyear
·thebusinessmaybesoldatanytimeandtheleaseassignedprovidedthatthenewtenant
retainsthe samename,typeandlevel ofservice.
SustainabilityImpact: Theleaseandtheuse ofthelibrarycaféspacebytheCoffeeSocietyfully
supportstheCity’s sustainabilitygoals.
FiscalImpact
Uponexecutionofthelease,effectiveMarch1,2011,theCitywillbeginreceiving$1,000per
month,withanadditional $50 permonththe secondyearandanadditional $50 thethirdyear.
_____________________________________
Preparedby: TimmBorden,Director ofPublicWorks
ApprovedforSubmissionby:DavidW.Knapp,CityManager
Attachments:LeaseAgreement
