REQUEST FOR PROPOSAL

For Tennis Concession

CORONADO TENNIS CENTER

Release Date: July 24, 2020

Due Date: August 10, 2020

City Contact: Dominique Albrecht, Assistant to the City Manager

TABLE OF CONTENTS

Contents TABLE OF CONTENTS .......................................................................................................................................... 2

INTRODUCTION .............................................................................................................................................. 3

TERM ................................................................................................................................................................ 3

MASTER TIMELINE ......................................................................................................................................... 3

DESCRIPTION OF TENNIS CENTER AND PRO SHOP .................................................................................. 4

RECENT OPERATING HISTORY .................................................................................................................... 4

INQUIRIES AND RESPONSES ......................................................................................................................... 5

PROPOSAL SUBMITTAL ................................................................................................................................. 5

TENNIS CONCESSIONAIRE RESPONSIBILITIES ......................................................................................... 6

PHILOSOPHY AND CONCEPT OF OPERATION STATEMENTS .................................................................. 7

EXPERIENCE .................................................................................................................................................... 7

PERSONNEL REQUIREMENTS ....................................................................................................................... 7

BID SUBMITTALS ............................................................................................................................................ 8

EXPENSES ........................................................................................................................................................ 8

TRANSITION .................................................................................................................................................... 8

INSURANCE AND BOND REQUIREMENTS .................................................................................................. 8

PROPOSAL PROCEDURES .............................................................................................................................. 9

CRITERIA FOR EVALUATION ..................................................................................................................... 10

AWARD OF CONTRACT ............................................................................................................................... 12

INDEPENDENT CONTRACTOR .................................................................................................................... 12

NOTICES ......................................................................................................................................................... 12

EXHIBIT A: TENNIS CENTER SITE MAP ..................................................................................................... 14

INTRODUCTION

The City of Coronado (hereinafter referred to as "CITY") Recreation and Golf Services (hereinafter

"RGS") is soliciting proposals from capable parties interested in operating the Coronado Tennis Center

("Tennis Center") Tennis Concessionaire ("Concessionaire").

The successful Concessionaire will be responsible for operating the Pro Shop retail concession, in an

organized and professional manner consistent with the professional expectations of the CITY. The

CITY expects that the Concessionaire will be active in marketing, tournaments, facility utilization and

partnering with the CITY where applicable.

The proposing individual or company shall demonstrate the ability to perform in this type of business

clearly, and articulate an achievable business plan for operation (based on the criteria set forth in this

RFP), and document compliance with appropriate laws and regulations. The selected concessionaire

shall demonstrate the ability to implement a concession that will meet, or exceed, the objectives of the

CITY, as well as, incorporate innovative ideas that are appropriate.

TERM

It is the CITY's intent to award a contract with an ‘initial’ term of three (3) years. At the CITY's sole

discretion, the CITY may exercise its option to extend the contract for up to two (2) additional five year

periods, up to a maximum of ten (10) additional years.

MASTER TIMELINE

The anticipated schedule for this Solicitation is as follows:

Date Activity

July 24, 2020 Release of RFP

July 31, 2020 at 5 p.m. Questions Due

August 5, 2020 at 5 p.m. Answers to Questions and Addendum(s) posted

August 10, 2020 at 5 p.m. Proposal Deadline

August 11-12, 2020 Proposals Reviewed / Interviews Scheduled / Conduct Interviews

August 18, 2020 City Council Approval of Concessionaire and City Manager

Authority to Negotiate with Selected Concessionaire August 19 – August 28, 2020 Contract Negotiations and Finalization

September 1, 2020 Contract Commencement

DESCRIPTION OF TENNIS CENTER AND PRO SHOP

The Tennis Center consists of a 1,400 square foot facility consisting of a lounge and kitchen, operating

center, restrooms, patio, and a 355 square foot space designated for retail. The Tennis Center also

includes two office areas that are utilized by CITY staff.

The Tennis Center has been in operation since the early 1960's and was remodeled in 2011. It consists

of eight (8) tennis courts (three lighted), and the associated facilities. The Tennis Center serves

Coronado residents, residents of neighboring cities, and visiting tourists. The CITY also has eleven

(11) additional courts located in other parts of the CITY, ten (10) of which are lighted. The CITY

courts accommodate public play, league play, tournaments, and professional instruction.

All tennis facilities are overseen and maintained by the CITY through the designated RGS supervisor.

Services provided through the Tennis Center consist of recreational and competitive tennis, group and

private tennis instruction, tournaments, general public walk-on tennis, individual reservation play,

tennis leagues and tournaments, and other miscellaneous tennis-related activities. Tennis instruction is

provided by the CITY via independent contractor. The Tennis Center also serves as a gathering place

for the Coronado Tennis Association (CTA). The CTA currently conducts a number of its own

programs. Under normal conditions, the tennis courts are open year round between 6:00 a.m. and 10:00

p.m.

The CITY is located on the San Diego Bay, between San Diego and the Pacific Ocean and enjoys a

mild climate, making it an ideal locale for year-round tennis. The local economy is supported mostly

by tourism and the city is home to three large resort hotel properties. There are significant numbers of

retirees and military personnel who live and work in Coronado. The residents are proud of the city's

many fine historic buildings and traditional special events.

RECENT OPERATING HISTORY

Concessionaire’s extrapolated revenue since FY 2015:

A small portion of gross revenues currently comes from "non-merchandise sales” and the allocation

by the CITY was changed after FY15. Previously this included concessions, and use of the tennis ball

machine, etc.

Category

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

5-Year

Average

Merchandise Sales $78,970 $87,759 $93,548 $86,299 $68,337 $82,983

Non-Merchandise Sales 3,377 578 6 85 812 $972

TOTAL $82,347 $88,337 $93,554 $86,384 $69,149 $83,954

INQUIRIES AND RESPONSES

In order to promote transparency and ensure that all potential Concessionaires receive the same information,

the CITY will answer all questions provided in writing by the questions due date.

All questions should be emailed to Dominique Albrecht, Assistant to the City Manager, at:

dalbrecht@coronado.ca.us . No phone calls will be accepted!

All questions must be submitted no later than Wednesday, July 31 by 5:00 p.m. Responses and addendums,

if any, will be provided to all applicants and posted to the CITY’s website by 5:00 p.m. on Friday, August

5, 2020.

PROPOSAL SUBMITTAL

To be considered, and due to COVID-19 restrictions, one (1) electronic copy of the proposal,

submitted by email, must be submitted on or before Monday, August 10, 2020 by 5:00 p.m.

(timestamps on this date that do not meet the delivery time will not be accepted). Proposals should be

emailed to Dominique Albrecht: dalbrecht@coronado.ca.us. No paper copies will be accepted at this

time.

TENNIS CONCESSIONAIRE RESPONSIBILITIES

Division of Time. Concessionaire, or designee, shall devote substantially all business time to operating,

supervising, promoting and managing the activities required. The Concessionaire shall be the ambassador of the

Tennis Center and represent the CITY as the Tennis Concessionaire for all identified events unless other

arrangements have been made with the approval of the RGS Director of the CITY (hereinafter the “Director”).

The Concessionaire’s performance of duties and responsibilities shall be evaluated by the Director. If any third

persons are employed by the Concessionaire, such person shall be entirely and exclusively under the direction,

supervisor, and control of the Concessionaire.

Operation. Concessionaire shall operate the Pro Shop retail concession. Concessionaire shall operate concession

every day and submit a seasonally adjusted schedule. Concessionaire shall staff the Pro Shop with personnel to

conduct the operations. The Concessionaire shall make its available employees participate in any scheduled

training that the CITY requires or recommends. Such training includes, but is not limited to, CPR training, AED

training and/or emergency drills.

Tennis Events. Concessionaire will accommodate all reasonable requests. Concessionaire will work with the

CITY in the delivery of events and tournaments that the CITY deems beneficial to the CITY, its brand, or the

promotion of the Tennis Center. Concessionaire shall work in good faith to ensure successful event(s) and fully

cooperate with the CITY.

Advertising. Concessionaire shall work with the Director, CITY officials, and tournaments in promoting tennis

at the Tennis Center. The Concessionaire shall promote tennis, community functions, tennis instruction, and the

delivery of tennis to the public. The professional promotion and the Concessionaire branding of the Tennis Center

are paramount to the CITY.

Court Conditions. The Concessionaire shall be aware of the material condition of the Tennis Court and tennis

facilities.

Meetings. The Concessionaire shall attend all meetings that are required by the RGS Director.

Marketing and Data Collection. The Concessionaire shall maintain an on-line presence through the CITY’s

approved website. The Concessionaire may have a website that interfaces with CITY’s website. The

Concessionaire shall capture appropriate forms of information, such as emails addresses, zip codes, and phone

numbers for database building, customer tracking, and advertising notifications through the POS system for direct

marketing and demographic purposes.

Character. The Concessionaire and employees, staff and independent contractors, shall hold themselves to a high

level of professionalism, and at all times protect the CITY brand.

Facilities. Facilities under the management of the Concessionaire shall include the Pro Shop, the Tennis Center,

and a storage building. See Exhibit A, Tennis Center Site Map.

Play Policies. The Concessionaire shall develop and enforce employee tennis privileges, with the approval of the

Director. Policies shall also include promotional tennis play and industry related tennis court reservations.

Based on the above general information, the CITY has prepared this Request for Proposals for distribution. All

related information necessary to submit a proposal is provided in the following pages for Concessionaire

consideration.

PHILOSOPHY AND CONCEPT OF OPERATION STATEMENTS

The following information is intended to assist the Concessionaire with the preparation of its proposal and solicit

information from the Concessionaire as to the philosophy and the methodology by which the Concessionaire will

deliver services in response to the Tennis Center Concessionaire provided in this RFP.

The Concessionaire's proposal narrative should include a philosophy statement demonstrating the

Concessionaire's approach to service delivery to the tennis community with specific reference to the tasks

defined in this RFP. Please provide specific examples, where appropriate, to the following statements to be

included:

1. Description of the applicant's goals and overall approach to the operation of tennis pro

Shop/facilities, with specific reference as to how these goals apply to the CITY. The CITY

desires to provide a balanced approach to tennis services that both enhances community and

public participation while providing a venue to visitors to Coronado.

2. Delineate the applicant's approach to customer service.

3. Describe the methods and basis for budget development and fiduciary responsibility.

4. Describe business practices and methods to develop robust merchandise sales and tennis

participation in a resort style community while working with residents to meet their needs.

5. Describe methods and philosophy for evaluating services and reporting strategies to ensure a

high level of customer service and satisfaction.

6. Describe the applicant's anticipated relationship with the CITY, service clubs, and any member

clubs and/or committees.

7. Describe marketing strategies and approach.

8. Business experience as it relates to the operation of a concession.

EXPERIENCE

Coronado is a high volume, fast paced environment. Proposals should include a detailed description

of all previous experience in working with public/private agencies and list specific references and

appropriate contact information. Applicants must list any management operations contracts, which

have been cancelled or otherwise terminated in the last ten years with appropriate contact information.

Applicant shall list any additional concessionaire or business-related operations currently under

contract and the remaining length of those contracts.

PERSONNEL REQUIREMENTS

Proposal shall include a list of anticipated position(s) and the qualifications and duties for each

position.

8

BID SUBMITTALS

To be provided under separate cover labeled "Confidential," the Concessionaire shall submit one detailed

five-year Business Plan that: 1) fully addresses staffing; 2) expected investment in initial merchandise; 3)

identify POS system; 4) and other operational costs.

Concessionaire pays CITY: The Concessionaire shall be paid under an agreement whereby the

Concessionaire pays the CITY:

Annual Facilities Rent: $6,600

EXPENSES

The selected Concessionaire shall be responsible for all operating expenses incurred in the operation

of the Pro Shop - except for those proprietary expenses to be paid by the CITY. Examples of proprietary

expenses include, cost of property and liability insurance, real property taxes (excluding possessory

interest taxes), cost of maintaining tennis courts, fences, etc. The CITY is responsible for basic utilities

(water, electricity, trash).

TRANSITION

The selected Concessionaire may negotiate with the existing Concessionaire on the following:

• The purchase of all fixtures, furnishings and equipment (FF&E) and merchandise inventory on-

site (based on independent appraisal of fair market value). Regardless, selected Concessionaire

must provide all FF&E and merchandise, at its own expense, required for proper operations.

• The purchase or assumption of tennis equipment.

• The purchase of point of sale (POS) system (including customer database). Regardless, selected

Concessionaire must provide a similar tennis-specific POS.

Note: Any agreement between the succeeding Concessionaire and the current Concessionaire for the

purchase or consignment of the above shall be treated as a private party sale and shall not be binding

or place any financial obligation whatsoever on the CITY.

INSURANCE AND BOND REQUIREMENTS

1. Insurance

The selected Concessionaire will be required to obtain and maintain during the term of the

Agreement policies of comprehensive general liability and property damage insurance from a carrier

authorized to be in business of the State of California in an insurable amount of not less than two

million dollars ($2,000,000) combined single limit per occurrence. These insurance policies must

name the CITY and its elected and appointed officers, officials, agents and employees as "additional

insureds." The CITY shall be provided with a Certificate of Insurance and additional insured policy

endorsement naming the CITY and its elected and appointed officers, officials, agents and employees

as "additional insureds".

9

The selected Concessionaire shall also carry Workers' Compensation Insurance in an insurable amount

of not less than one million dollars ($1,000,000) or statutory minimum amount, whichever is greater;

and Employers' Liability Insurance in an insurable amount of not less than one million dollars

($1,000,000); evidence of which is to be furnished to the CITY in the form of Certificate of Insurance.

2. Fidelity Bond

The selected Concessionaire shall be required to procure a fidelity bond in the amount of no less than

ten thousand dollars ($10,000) to cover any employee authorized to collect or handle money in the

course of their duties.

PROPOSAL PROCEDURES

1. Form and Style of Proposals

a. Describe in a detailed narrative, with supporting data or tabular materials as appropriate, the

proposed approach and procedures to be used in completing the tasks described in the Scope of Services capable of meeting the CITY's expectations as described. Include a proposed schedule showing implementation of the various tasks as needed. The final agreement with the Concessionaire will include a schedule for completion of the major milestones based upon selected Concessionaire's transition schedule.

b. Proposals shall include a detailed description and history of the applicant's experience related to

and necessary for the successful completion of the tasks defined in this RFP. Include a minimum

of three references and contact information.

c. Proposals shall include a statement as to whether the applicant is a sole proprietor, partnership or

corporation, or other legal entity and include the contact information of all officers.

d. Each proposal shall include a statement that all information included in the proposal is true and

accurate as represented by the presenter. Any proposal containing information proven false shall be

considered rejected by CITY.

2. Consideration of Proposals

a. It is the intent of the CITY to award a contract to the applicant whose proposal is in the best interest

of the CITY and based upon, but not limited to, the applicants demonstrated experience and

ability to provide concessionaire services. Applicants may be selected for an oral presentation

and shall be prepared to present evidence of Concessionaire’s financial ability to perform.

b. Selection of the successful applicant shall be based upon a qualitative comparative analysis of

concessionaire qualifications and the quality of proposal and oral presentation, in addition to a

financial background analysis of proposal.

c. The CITY shall rank acceptable proposals received and may conduct oral interviews with the

top ranking applicants. The CITY will then initiate negotiations with the top candidate(s).

Should negotiations be unsuccessful, the CITY will then initiate negotiations with the next

highest-ranking candidate(s). The CITY Council has final authority in approving any agreement

recommended by staff.

10

d. As part of the evaluation process, the CITY may contact the applicant's current or most

previous employer, supervisor, and/or visit facilities currently operated by the applicant.

3. References

Provide a list of at least five (5) client references who have received services from the prospective

concessionaire. Provide names of contact person, addresses and telephone numbers for all references.

4. Exceptions

Identify any exceptions you are proposing with respect to the Scope of Services and related Bid

Submittals. Additionally, if there are any exceptions to the CITY of Coronado's insurance requirements

and/or the CITY's contract provisions as shown in the attached exhibits, the applicant should list the

exceptions in the proposal.

CRITERIA FOR EVALUATION

Proposals will be evaluated by an Evaluation/Selection Committee which will evaluate and rank

proposals on criteria listed below. The criteria are itemized with their respective weights for a maximum

total of one hundred (100) points per Evaluation/Selection Committee member.

1. Experience as a Business Operator/Concessionaire - 20 points

List examples which demonstrate experience as a business owner/operator/concessionaire, and the

ability to manage a retail concession. Discuss employee development, supervision, professionalism and

code of conduct standards. Discuss business philosophy and approach, as well as, dealing with sensitive

issues. Provide examples. Discuss approach toward complaint resolution and when to inform CITY

staff.

2. Financial Strength and Stability - 20 points

Provide financial statements and identify working capital and lines of credit to operate and sustain

the concession operation as proposed. Identify capital for start-up costs and the proposed initial

investment. Discuss the ability to maintain strength and stability over the long haul. Identify

additional capital as necessary.

3. Five-Year Business Plan and Business Management - 15 points

Prepare a pro forma for the first five years of operation. Include all start-up costs, as well as on-

going variables (e.g. cost of merchandise sold) and fixed costs (e.g. salaries, rent, depreciation,

utilities, insurance, etc.). Identify relationships with vendors and purchasing ability. Discuss

accounting, record keeping, and inventory management/control. Discuss trends in merchandising,

customer service, and marketing, as well as any intended investment into the physical property

4. Hotels and Business Relationships – 15 points

List examples of relationships with businesses, business affiliations, and/or hotels that would be

beneficial to the growth of tennis at the facility through tournaments, outings, or general play. Identify

promotional opportunities through the use of the tennis facility, including the use of the clubroom and

patio area.

11

5. Media, Organizations, Club(s), and Service Groups – 15 points

List any organizations, clubs, service groups or others organizations that you have coordinated with in

a synergistic capacity over the last three (3) years. Discuss the professional outcome. Provide a

synopsis of any presentations to professional organizations and/or media relations that have benefitted

you and /or your business professionally.

6. Familiarity with Region (San Diego County) - 15 points

Demonstrate general knowledge of San Diego County and, in particular, Coronado.

12

AWARD OF CONTRACT

The contract award shall be made to the responsible Concessionaire whose proposal is most advantageous

to the CITY, taking into consideration the evaluation factors set forth in this request for proposal. Any

contract, resulting from this RFP, will be negotiated by the Office of the City Manager.

INDEPENDENT CONTRACTOR

The selected Concessionaire shall perform the services provided for herein in a manner of

Concessionaire's own choice, as an independent contractor and in pursuit of Concessionaire's

independent calling, and not as an employee of the CITY. The Concessionaire shall be under control of

the CITY only as to the result to be accomplished and the personnel assigned to perform the services

by the Concessionaire. The Concessionaire shall confer with the CITY at a mutually agreed frequency

and inform the CITY of work/progress as well as receive direction from the CITY. Neither the

Concessionaire nor Concessionaire's employees shall be entitled in any manner to any employment

benefits, including but not limited to employer paid payroll taxes, Social Security, retirement benefits,

health benefits, or any other benefits, as a result of a CITY Agreement. It is the intent of the parties that

neither the Concessionaire nor its employees are to be considered employees of CITY, whether

"common law" or otherwise, and the Concessionaire shall indemnify, defend and hold CITY harmless

from any such obligations on the part of its officers, employees and agents.

NOTICES

Good Faith. This RFP has been compiled in good faith. The information contained within is selective and

subject to CITY update, expansion, revision and amendment which will be available on the CITY website.

Right to Cancel. The CITY reserves the right to change any aspect of, terminate, or delay this RFP, the

RFP process and/or the program which is outlined within this RFP at any time, and notice shall be given in a

timely manner thereafter.

Not an Award. Recipients of this RFP are advised that nothing stated herein, or any part thereof, or any

communication during the evaluation and selection process, shall be construed as constituting; offering or

awarding a contract, representation or agreement of any kind between the CITY and any other party, save for a

formal written contract, properly executed by both parties.

Property of the CITY. Responses to this RFP will become the property of the CITY, and will form the

basis of negotiations of an agreement between the CITY and the apparent successful Concessionaire.

Not Liable for Costs. The CITY is not liable and will not be responsible for any costs incurred by any

Concessionaire(s) for the preparation and delivery of their RFP responses, nor will the CITY be liable for

any costs incurred prior to the execution of an agreement, including but not limited to, presentations by

RFP finalists to the CITY or any site visit costs.

Criminal Background Checks. The selected Concessionaire will be required to provide the name, date of

birth, and Social Security number of all personnel who will be assigned to do the work, for the purpose of

obtaining a criminal background check from the Coronado Police Department. This information must be

furnished prior to the commencement of services and shall be supplied for all subsequent employees. The

CITY reserves the right to conduct updated background check on existing personnel as deemed appropriate by

CITY.

13

Interpretation of Documents. The CITY reserves the right to make corrections or clarifications of the

information provided in the RFP. If any person is in doubt as to the true meaning of any part of the

specifications or other contract documents, or finds discrepancies in the specifications, he/she may submit

to the CITY a written request for an interpretation or correction.

Irregularities. The CITY reserves the right to waive non-material irregularities if such would be in the best

interest of the CITY.

Business Licenses and Other Certificates. Concessionaires are hereby noticed that a City of Coronado

business license will be required to perform the services outlined in this RFP. It is the responsibility of the

selected Concessionaire to obtain all licenses, certificates, and registrations necessary to perform the

specifications outlined in this RFP.

14

EXHIBIT A: TENNIS CENTER SITE MAP