Special Notice / Hearing: None
Vote Required: 4/5ths
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Agreement with California Dining Services
RECOMMENDATION:
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Adopt a resolution authorizing the County Executive, or designee, to negotiate and execute a lease agreement substantially in the form provided as Attachment A as may be modified in consultation with the County Attorney, to permit California Dining Services to provide cafeteria services at the Hall of Justice and County Office Building 3, for the term July 22, 2024 through July 21, 2027.
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BACKGROUND:
The Hall of Justice housing the Superior Court and other services and the recently opened County Office Building #3 (“COB3”) are centers of public business for County employees, Court staff and members of the general public. For many years, the County has contracted with an outside vendor to operate and provide cafeteria services at the Hall of Justice café area. For the past 14 years, a vendor that has since retired provided such services in the lower floor area at the Hall of Justice, including hot and cold entrees and “grab and go” foods for County and Court staff, jurors, and the general public.
In addition, COB3 features a café space and dining area, designed to enable service of “grab and go” foods and beverages. The café will provide an accessible food option for County personnel and members of the public who may visit the campus for services.
Government Code § 25537.5 authorizes the Board, by 4/5 vote, to contract and lease County property for employee cafeteria purposes.
DISCUSSION:
In April 2024, the County Executive’s Office conducted a competitive bidding process (“RFP”) to identify a qualified vendor to resume providing cafeteria service at the Hall of Justice (located at 400 County Center, Redwood City) and to provide such services at COB3 (located at 500 County Center). A copy of the RFP matrix is submitted with this memorandum. An evaluation committee of County and Court staff reviewed the proposal and determined that California Dining Services (“CDS”) meets the County’s qualifications to provide cafeteria services at these locations.
Based in Irvine, CDS is one of the largest regional food service management companies in California, operating 75 corporate or government cafes. California Dining Services emphasizes the use of seasonal and locally grown produce to provide nutritious meals. CDS also promotes using bio-friendly products whenever possible, participate in recycling programs offered through their clients, and continuously promotes waste reduction.
Staff has prepared a proposed lease agreement in the form submitted with this memorandum as Attachment A to provide CDS with permission to manage, staff and operate the cafeteria and dining area with food service at the Hall of Justice and to provide fresh food, beverages and “grab n’ go” snacks at COB3. Under the proposed lease agreement, CDS will provide staffing and also work with the County’s Vocational Rehabilitation Services (“VRS”) program to consider staffing appropriate functions of the cafes with clients of the VRS. Under the proposed agreement, CDS will offer healthy food and drink choices at both cafeteria locations, and comply with all County licensing, inspection, janitorial, and wellness requirements. The County will cover the base rent for the first two years of the agreement, after which CDS will be responsible for paying the base rent totaling $11,392 per month. CDS will be responsible for paying the full cost of all janitorial, housekeeping and pest control services.
Staff recommends that the Board adopt a resolution authorizing the County Executive, or designee, to negotiate and execute a lease agreement substantially in the form provided herewith as may be modified in consultation with the County Attorney, to permit CDS to provide cafeteria services at the Hall of Justice and County Office Building 3, for the term July 22, 2024 through July 21, 2027.
The County Attorney has reviewed the proposed lease agreement and resolution as to form.
FISCAL IMPACT:
The County will not charge base rent for the first two years of the agreement. CDS will be responsible for paying the full cost of utilities and operating expenses of their business. The cost of rent for the first two years ($11,392 per month) will be paid for by Non-Departmental Services and is included in the FY 2024-25 Recommended Budget.