OUTDOOR RESORT - PALM SPRINGS OWNER’S ASSOCIATION BOARD OF DIRECTORS STAFF REPORT
Board Meeting Date:
September 21, 2020 New Unfinished X Discussion
Consent Agenda Executive Session
Agenda Item: Description:
Espresso Bar Contract Termination and Award
Submitted By:
Ed Vitrano, General Manager
Date: September 17, 2020
Background:
1. Termination/Compensation After 18 years of faithful service, Alex and Marge McDougall, long-time Owners in the Resort and the concessionaires of Marge’s Espresso Bar, expressed a desire to take a year off during the Covid pandemic. The Board discussed the issue and considered the following: 1. Would it be possible to find a substitute for only one year? The Board then asked management to contact the McDougalls to negotiate an end to the relationship, since the contract had reduced to a month-to-month basis. During those discussions, the concessionaires agreed to a non-renewal, but made some requests for the Board to review. 2. Award Assuming the negotiations to end the current contract went as desired, the Board also discussed two alternative concessionaires who had shown interest in future operations. First was a proposal to operate a Specialty Drink establishment with other pastry offerings, such as a Boba Bar located in a local mall. Second was more in line with a Starbucks operation, with breakfast/lunch sandwiches added. Motion(s) for Consideration: To approve termination of the Espresso Bar contract and award the McDougalls $1,500, which consisted of 3 years of rent as well as a $600 gratuity in recognition of their long service. And To engage Richard Camacho, of TACOOK Enterprises, the concessionaire of Bella Roma at the La Palma Café, and amend the contract to include the operation of a “Coffee Café.” 2. How did the Espresso Bar rate on the recent Strategic Plan Survey? 3. What did the Board see as future desires/needs of the operation? 4. What were the terms of the contract?
Designated Funding:
N/A
Board Action:
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