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Staff Report PREPARED BY: DOLLY GOYAL Library Director Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 06/06/2017 ITEM NO: 12 DATE: MAY 23, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: DISCONTINUE COFFEE CART SERVICES IN THE LIBRARY AND REPURPOSE THAT SPACE FOR THE FRIENDS OF THE LOS GATOS LIBRARY RECOMMENDATION: Discontinue Coffee Cart services in the Library and repurpose that space for the Friends of the Los Gatos Library. BACKGROUND: When the new Los Gatos Library was under construction 2012, a Request for Proposal (RFP) for coffee cart services was sent to the community and awarded to Los Gatos Roasting Company with a five-year lease agreement. During the majority of this time, the closest venues for coffee included 7-Eleven and The Purple Onion. Recently Café Dio opened across the street, and is very accessible from the Library. DISCUSSION: In anticipation of the end of lease term, another RFP for coffee cart services was offered to 16 businesses in Los Gatos, four businesses in Campbell and San Jose, two businesses in Saratoga, and one business in Cupertino (Attachment 1). The RFP was targeted toward local businesses and did not include larger business chains such as Peet’s, Starbucks, etc. The RFP subsequently resulted in no bids. Teri Hope, owner of the Los Gatos Roasting Company and current renter of the Library coffee cart space, provided written notice that she would not be renewing the lease (Attachment 2). Ms. Hope also included feedback on the experience of having a coffee cart in the Library, its overall sustainability, and modest profitability. PAGE 2 OF 3 SUBJECT: DISCONTINUE COFFEE CART SERVICES IN THE LIBRARY AND REPURPOSE THAT SPACE FOR THE FRIENDS OF THE LOS GATOS LIBRARY MAY 23, 2017 S:\COUNCIL REPORTS\2017\06-06-17\12 - Coffee Cart\Staff Report Coffee Cart FINAL.docx 6/1/2017 2:42 PM SLL 110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832 www.losgatosca.gov DISCUSSION (cont’d): While coffee carts and cafes within libraries were once popular, most branch libraries have discontinued the service for reasons similar to Ms. Hope’s experience. The City of Santa Clara Central Park Library is one of the few libraries that continue to have a cafe. CONCLUSION: Staff recommends eliminating the service for a coffee cart within the Library due to the lack of interest from small coffee houses to the RFP. Staff recommends repurposing that space for the Friends of the Los Gatos Library to expand their connection with the community , and provide literature of about their bookstore, its location, and the bookstore hours. The Library will continue to allow food and beverages inside of the Library, consistent with the Rules of Conduct. If the Town Council agrees with the recommendation, the Library will focus on supporting local businesses by indicating where coffee and similar products can be obtained in Town. ALTERNATIVES: Alternatively, the Council could direct:  The reissuance of the RFP to include national and more commercial coffee providers, and/or  The placement of vending machines in the Library. Staff is not recommending either alternative because it is unlikely that a national chain would be interested in the opportunity and because vending machines bring their own cost, maintenance, and potential patron concerns. FISCAL IMPACT: The Los Gatos Roasting Company began their lease in 2012 with a $500 per month rent, with an annual increase of $20 each year, ending at $580 for FY 16-17. This was de minimus revenue for purposes of the Town budget. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. PAGE 3 OF 3 SUBJECT: DISCONTINUE COFFEE CART SERVICES IN THE LIBRARY AND REPURPOSE THAT SPACE FOR THE FRIENDS OF THE LOS GATOS LIBRARY MAY 23, 2017 S:\COUNCIL REPORTS\2017\06-06-17\12 - Coffee Cart\Staff Report Coffee Cart FINAL.docx 6/1/2017 2:42 PM SLL 110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832 www.losgatosca.gov Attachments: 1. Coffee Cart RFP Contacts 2. Teri Hope Letter, 4-27-17.