City Council Meeting: September 11, 2012
Agenda Item: 3-L
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Temporary Operator License Agreement for 12040-12048 Wilshire Boulevard
On May 11, 2012, staff issued a Request for Proposals (RFP) for Christmas tree lot operators. Chauvet Tree Farms was the only operator to respond to the RFP. The License Agreement would allow Chauvet Tree Farms to sell Christmas trees on the City-owned property at the southeast corner of Wilshire and Bundy. The proposed initial license period is for 61 days, from November 1, 2012 through December 31, 2012, for a license fee of $10,004. This fee would increase annually thereafter by the Consumer Price Index (CPI).
Each year, staff receives inquiries from Christmas tree lot operators seeking information about City-owned vacant land that can accommodate Christmas tree sales. However, an appropriate vacant City lot was not available for temporary use until the City acquired the Property at 12040-12948 Wilshire Boulevard in March 2010. This property is located in the City of Los Angeles, adjacent to the City of Santa Monica’s Arcadia Water Treatment Plan.
Interim use of this property for revenue-generating purposes such as Christmas tree sales, and for other short-term uses, is appropriate until long-term plans for the property are developed. Therefore, this year, in response to the inquiries, staff issued a Request for Proposal (RFP) for Christmas tree lot operators for the property at 12040-12048 Wilshire Boulevard for a period of up to ninety days during the 2012 Christmas season.
As part of a competitive bid process, on May 11, 2012, staff posted the RFP on the Economic Development web site and sent it to seven Christmas tree lot operators. In addition, this RFP was posted on Planet Bids on May 14, 2012 and was sent to the California Christmas Tree Association on May 16, 2012. The selection criteria included three years of experience with Christmas tree lot operations and the financial resources to provide a quality service to the public.
On May 16, 2012 staff also issued an addendum to the RFP to include the option, at the City’s discretion, of up to four additional 90 day extensions during the 2013-2016 Christmas seasons for a total of up to five Christmas seasons. Three perspective bidders viewed the RFP on Planet Bids, however, only one response was received from Chauvet Tree Farms (Chauvet), who proposed to rent the site from November 1, 2012 through December 31, 2012 and pay a fee of $10,004. This fee would increase during each short-term period of the then-current United States Department of Labor Consumer Price Index (CPI). The proposed hours of operation would be from 10am to 10pm, seven days a week. The first three weeks of November would be used for lot setup and acquiring all required City of Los Angeles permits. Retail sales would begin on November 23, 2012 and close on December 25, 2012. The last week of December would be used for cleanup and removal of all debris. Chauvet would be required to obtain all permits and other approvals from the City of Los Angeles.
City staff was satisfied with Chauvet’s execution of their lease term on this property last year and received excellent reviews regarding their demonstrated expertise, knowledge, and experience from property owners including the City of Culver City and the Metropolitan Transportation Authority who leased property to Chauvet in the past for operation of Christmas tree lots.
Financial Impacts & Budget Actions
The License Agreement will generate $10,004 in additional revenue for the City. Funds will be deposited in Account No. 25671.402350 (Water-Miscellaneous Non-Operating)
Prepared by: Elsa Trujillo, Senior Development Analyst