It is recommended that the Mayor and City Commission authorize the issuance of Invitation to Negotiate (ITN) 2022-060-WG for the City employee cafe which seeks proposals from qualified parties interested in operating a food and beverage cafe located at the ground floor retail space of the City-owned building located 773 17th Street (adjacent to City Hall).

On April 26, 2017, the Mayor and City Commission awarded ITN No. 2017-097-WG for a City Employee Cafe to Taste Bakery Café. Taste Bakery Café currently operates the food and beverage cafe located at the ground floor retail space of the City-owned building located 773 17th Street (adjacent to City Hall), which provides healthy menu options for City employees. The agreement had an initial term of three (3) years with the City Manager option to renew for two additional, one-year periods. The agreement is scheduled to expire on October 31, 2022.

The City-owned ground retail space, including an adjoining outdoor seating area, was leased to Taste Bakery Café for one dollar per contract year.  In consideration of the reduced rent, employees were provided a forty percent (40%) discount, with the City reimbursing Taste Bakery for employee discounts, in an amount of $168,960 not exceeding $200,000 per contract year.  It has been a successful program as it provides healthy menu options and is used extensively by employees and visitors to City hall.

In anticipation of the current agreement expiring, the Administration is recommending issuing the RFP.

To consider an agreement subsequent to the current agreement, the City seeks responses from Bidders interested and qualified to maintain, manage and operate a food and beverage café at the ground floor retail space of the City-owned building located at 773 17th Street (adjacent to City Hall). The successful bidder will provide healthy menu options for City employees in accordance with and subject to all the requirements, terms, and conditions herein. Interested parties are invited to submit proposals in accordance with Section 0300. Responsive proposals will be evaluated in accordance with Section 0400.

The City may negotiate with one or more firms to arrive at an agreement for services, inclusive of rent, revenue, and employee discounts as mutually agreed upon. Now that the café at this location has been deemed to be viable, the City is seeking to increase the current rent. The successful bidder will be responsible for rent and its prorated share of property operating expenses (common area maintenance, real estate taxes, insurance, etc. based on tenant’s square footage) for the ground-level portion of the building. Firms are to propose a rental structure for the City’s consideration, along with an employee benefit program. The employee benefit program should include, at a minimum, a percentage discount for employee meals.

It is recommended that the Mayor and City Commission authorize the issuance of ITN 2022-060-WG for the operation of a City employee cafe.