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HomeMy WebLinkAbout25E - AGMT - VENDOR KIOSKSREQUEST FOR COUNCIL ACTION CITY COUNCIL_ MEETING DATE: MAY 6, 2014 TITLE: AUTHORIZE CITY MANAGER TO ACQUIRE KIOSKS FOR ARTISTS VILLAGE FROM THE IRVINE COMPANY r� CITY MANAGE RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: 13-10-T071-9-61 ❑ As Recommended ❑ As Amended ❑ Ordinance on 18' Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Award contract to the Irvine Company for the purchase of four retail kiosks for the Artists Village in the amount not to exceed $50,000, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION Activating the promenade in the Artist Village with pedestrians is a high priority and staff are seeking to introduce live music, improved outdoor dining and upgraded lighting. At this time, staff is also preparing to develop operating and design guidelines to introduce retail kiosks to the promenade. This work is consistent with Santa Ana's Strategic Plan which emphasizes our Downtown as a thriving, culturally diverse, shopping, dining and entertainment destination. This past month, staff became aware of a unique opportunity to purchase discounted, pre -owned retail kiosks formerly utilized at the Irvine Spectrum by the Irvine Company. These kiosks are in excellent condition and meet the city's specifications. The Irvine Company has offered four kiosks for purchase at $12,000 each, which includes delivery to the Downtown Artists Village area. The purchase of these pre -owned kiosks is time sensitive and when compared to the purchase of new kiosks, will result in significant upfront savings to the City. Further, given estimates of rental rates of $1,000 per month for the kiosks, it is anticipated that the cost of acquisition can be amortized over a year's time. The proposed locations for the four kiosks are illustrated in Exhibit 1. Staff is confident that these kiosks can also serve as retail incubators for small businesses. It is also anticipated that one kiosk will be used as an information hub, providing news and events of interest to Santa Ana's various community and business groups. Once the kiosks are acquired and through an interactive website that will be launched, residents and visitors to the promenade will be invited to provide input on the types of businesses they 25E -1 Artists Village Kiosks May 6, 2014 Page 2 would like to see utilize the kiosks. Staff will also finalize our operating and design guidelines to ensure that the selected business enterprises meet city standards and expectations with the delivery of the kiosks anticipated in early July. FISCAL IMPACT Funds are available in the General Non - Departmental Machinery & Equipment account (no. 01105015 - 66400). Marc Morley -- -� Economic Develop ent pecialist III Community Develoa t Agency MM /kg Exhibit: 1. Kiosk Locations 2. Letter of Agreement APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency s 25E -2 EXHIBIT 1 Artists Village Proposed Kiosk Locations 25E -3 sop 'IL 2,,- r 4 < . .i SF 7 Al MAYOR Miguel A. Pulido MAYOR PRO TEM Sal Tinajero COUNCILMEMBERS Angelica Amezcua P. David Benavides Michele Martinez Roman Rayne Vincent F. Sarmiento CITY OF SANTA ANA OFFICE OF THE CITY ATTORNEY 20 Civic Center Plaza, M -29 • P.O. Box 1988 Santa Ana, California 92702 (714) 647.5201 • Fax (714) 647.8515 www.santa- ana.oro May 6, 2014 The Irvine Company C/O Heather Epstein Director of Specialty Leasing 101 Innovation, Irvine CA 92617 RE: Purchase of Retail Kiosks by City of Santa Ana Dear Ms. Epstein, CITY MANAGER David Cavazos CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria D. Huizar EXHIBIT 2 This letter shall confirm and memorialize the agreement between the Irvine Company and the City of Santa Ana wherein the Irvine Company has agreed to sell to the City four (4) retail kiosks formerly utilized by the Irvine Company at the Irvine Spectrum. The City shall pay $12,000.00 per kiosk. The sales price includes delivery by the Irvine Company of each kiosk to designated locations in the City. The kiosks will be delivered before the end of July 2014. The City will pay $12,000.00 per kiosk to the Irvine Company within 30 days of receipt and acceptance of the kiosk by the City. The Irvine Company agrees that the kiosks will be delivered in the relative same condition as they existed when in use at the Irvine Spectrum. The City thanks the Irvine Company for facilitating the sale of the kiosks. Please acknowledge your agreement with the terms herein by executing below and returning to my office. Please do not hesitate to contact me if you should have any questions. Heather Epstein Sin�cceere�ly,� � DAVID CAVAZOS City Manager SANTA ANA CITY COUNCIL Miguel A, Pulido Sal Tlnolero Vincent F. Sarmiento Michele Medina. Angelica Amemua P. David Sanavides Roman Rayne Mayor Mayor Pro Tem, Ward 6 Ward Ward Wahl Ward Ward MPulldoralsanta- ana.om $Tinaieroldisanfa - ena.om VSnrmiento0samri- ana.om _ AbriffWntaffe om AAmexcuaOsenleanaora ABenavldes(a)santa- ena.om RRevna0santa- ena.0ro A16 460 L- 460 25E -6