FROM:
Community Services
SUBJECT:
Title
Fontana Community Senior Center Coffee/Juice Bar Lease Agreement
End
RECOMMENDATION:
Recommendation
1. Authorize the City Manager to enter into a lease agreement with Paperboy Roasting Company to offer food and beverage preparation and retail services at the Fontana Community Senior Center; and
2. Authorize the City Manager to enter into any documents necessary to effectuate said agreement.
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COUNCIL GOALS:
• Operate in a businesslike manner.
• Increase citizen involvement.
• Become more service oriented.
DISCUSSION:
As part of the 43,855 square foot Fontana Community Senior Center, a coffee/juice bar is included to provide comprehensive services to center guests. Directly adjacent to the courtyard of this facility, is a designated space for the Coffee/Juice Bar. Specifically, this space will provide an opportunity for patrons of the center to purchase coffee and foods, wireless access to the internet, read a novel, or sit and chat with friends in a “coffee house” atmosphere.
The identified coffee bar space is 168 square feet and includes furnishings for operation. In addition, the Coffee/Juice Bar opens into a lounge area within the center where customers will be permitted to bring their coffee and/or packaged snack items to enjoy.
As part of a competitive application process, coffee vendors were solicited to lease the space and provide quality services, offering a range of beverage and food products and services, as well as work with the City of Fontana to offer special events. One application was received, and the company was invited to make a presentation of their operation proposal.
Paperboy Roasting Company was selected as the vendor for the Coffee/Juice Bar based on their application and the demonstration of their ability to create an atmosphere that compliments the programming offered within the facility (operated during the Fontana Community Senior Center operating hours and during City sponsored special events). Paperboy Roasting Company’s proposal for services in the space includes offering freshly roasted coffee, teas, juice, and fresh pastries.
The proposed Lease Agreement will have an initial term of one year and will automatically renew on an annual basis concurrent with the fiscal year cycle. The vendor will be required to make identified lease payments in an amount equal to the cost of the utilities for the space on a monthly basis. An annual adjustment has also been built in to account for cost of utility increases, as well as an option to adjust the lease amount if the actual cost of utilities is higher than the original estimate. The cost of maintenance and custodial services will also be the responsibility of the vendor.
The lease amount is deliberately set low to facilitate a successful start of this business enterprise and to ensure that guests to the facility have comprehensive and high-quality services available. In addition, the vendor will be in operation during specified City events to provide food and beverage services for the benefit of the community.
Paperboy Roasting Company is planning to operate the Coffee/Juice Bar from 9:00 a.m. to 2:00 p.m. Monday through Friday. This is within normal operating hours of the Fontana Community Senior Center.
By entering into this Lease Agreement, the City will be able to provide quality services and an enhanced center experience to the community through an experienced and professional vendor.
FISCAL IMPACT:
Lease revenues in the amount of $2,100.00 (the estimated cost of utilities to operate the coffee bar space on an annual basis) will be received by the City on an annual fiscal year basis. Revenue will be deposited into Org 10124200.
MOTION:
Approve staff recommendation.