Item 38 - Agreement with Bean Sprouts at the Santa Ana Zoo

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Food and Beverage Concession Services at the Santa Ana Zoo February 20, 2024 Page 2 3 9 6 9 The Request for Proposals (RFP) No. 23-040 was advertised on May 25, 2023, on the City’s online bid and management publication system. A summary of the invitation for the bids and bids received is as follows: 79 Vendors notified 8 Santa Ana vendor notified 19 Vendors downloaded the bid packet 1 Bids received 0 Bids received from Santa Ana Vendors The proposal was evaluated according to the criteria listed in the RFP, which includes vendor responsiveness, experience, the fee proposal, and references to ensure that the proposal met the standards of the zoo. While only one proposal was received, City staff is confident that Bean Sprouts will provide quality services and product to users of the Santa Ana Zoo. Bean Sprouts’ sole focus is serving family destinations and the importance of the visitor experience. They complement their environmentally responsible and sustainable efforts with high-quality ingredient guidelines that emphasize organic, hormone- and antibiotic- free offerings. With a menu that includes sandwiches, salads, pizzas, and organic espresso bar alongside the “Imaginibbles kids” menu, Santa Ana Zoo staff believes that their operational philosophy is in line with the mission and goals of the zoo. Additionally, the fresh, non-fried menu food options lend themselves to quicker service to customers. Bean Sprouts has been well-received by visitors over the past five years and the new addition of alcohol sales will further enhance the services they provide. The agreement will provide the City with a tiered revenue-share plan that includes a share of net sales (total sales amount before applicable taxes). •6% Revenue Share - Up to $300,000 •8% Revenue Share - $300,001-500,000 •10% Revenue Share - Over $500,000 Additionally, Bean Sprouts will invest up to $50,000 for install of improved service windows in the café area, purchase of a mobile cart, and expenses related to compliance with ABC and SAMC requirements for alcohol sales. Bean Sprouts has already had initial conversations with City staff and the ABC about licensing. There are a number of compliance steps required for successful licensing and Bean Sprouts will immediately take further steps with approval of this agreement. There will be no downtime or lapse in service for zoo visitors as Bean Sprouts is currently providing food concession and will continue with approval of this agreement.