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Report regarding a resolution approving the Lease and Concessionaire Agreement between the City of South San Francisco and Mata MV Corporation (d.b.a. Morning Vibes Café) to operate a café at the Library | Parks and Recreation Center. (Han-Ching Wong, Management Analyst II)
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RECOMMENDATION
Recommendation
It is recommended that the City Council approve the Lease and Concessionaire Agreement between the City of South San Francisco and Mata MV Corporation (d.b.a. Morning Vibes Café) to operate a café at the Library | Parks and Recreation Center.
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BACKGROUND/DISCUSSION
The Library | Parks and Recreation Center (LPR) opened on October 28, 2023, and quickly became a popular and well-utilized community hub in South San Francisco. Based on community feedback requesting a café or coffee shop at LPR, as well as interest expressed by City Councilmembers, the Library and Parks and Recreation Departments issued a Request for Proposals (RFP) to identify a qualified café operator. After scoring written proposals and conducting in-person interviews, plus a site visit, City staff recommend a lease agreement with vendor Mata MV Corporation (d.b.a. Morning Vibes Café).
In planning the design of LPR, staff identified a café space as a future desired amenity. Basic furniture, fixtures, and utility hookups were installed in anticipation of a café serving food and beverages. The café space is located on the third floor of LPR, near the Administration offices, and measures approximately 192 square feet. (See Attachment 1 for café space plan in the 3rd floor lobby.)
The RFP required vendors to propose how they would finish, furnish, equip, and operate a café. The published criteria for evaluation prioritized project and vendor qualifications, including experience operating cafés, for a combined weight of 55%. Menu quality, including selection, healthy options, and affordability, was weighted at 35%. An additional 5% of the score accounted for proposed Community Service plans, with the rent and revenue share proposal accounting for the final 5%.
Separately, businesses based in South San Francisco, owned by a South San Francisco resident, or owned by graduates of the City of South San Francisco and Renaissance Entrepreneurship Center program were eligible to receive a one-time, non-additive 2% preference applied to their base score.
The RFP allowed rent proposals to be tiered by year as necessary for fiscal sustainability to address the vendor’s startup costs and capital.
First RFP Issued June 2025
The RFP was publicized through various newsletters, the South San Francisco Chamber of Commerce, OpenGov, flyers, social media, and mailed letters to business license holders identified as food operators. The evaluation team received confirmation of attendance from nine vendors for the mandatory site walk, which included a tour of the café space and a brief tour of the building and kitchens. Of the nine vendors, three submitted applications. Of those who submitted, none met all of the submission requirements of the RFP and were considered non-responsive. The evaluation team used this round to refine the application process and developed a detailed checklist to guide vendors in submitting complete proposals.
Second RFP Issued August 2025
The second RFP was publicized through the same channels as the first RFP, including various newsletters, the South San Francisco Chamber of Commerce, OpenGov, flyers, social media, and mailed letters to business permitholders identified as food operators.
Vendors from the first RFP were notified of the second RFP and invited to reapply. For those vendors who previously attended the site walk, attendance for the subsequent site walk was optional and none elected to attend. Seven vendors confirmed attendance at the mandatory site walk and later submitted their applications. Four vendors - Morning Vibes Café (South San Francisco), Skandariana International (South San Francisco), Latin & Asian Hospitality Group (Campbell), and Tallio’s (San Francisco) - submitted responsive applications.
Based on the proposal evaluation, Morning Vibes Café’s proposal received the highest overscore of the four responsive applications. The final scores (out of 102 points) were as follows: Morning Vibes Café (94.14 points); Latin & Asian Hospitality Group (90.14 points); Skandariana International (86.71 points); and Tallio’s (68.57 points). The review panel for the proposals and interviews consisted of staff from Economic & Community Development, Parks & Recreation, and Library departments. (See Attachment 2 for a summary of scores.)
The top three vendors, Morning Vibes Café, Skandariana International, and Latin & Asian Hospitality Group, were subsequently invited to in-person panel interviews. During the interview process, staff were able to further examine the proposals and vendor qualifications.
While each of the three vendors proposed an aesthetic space design and a menu with affordable healthy options, Morning Vibes Café differentiated itself in the following ways:
• Extensive relevant, and recent, experience successfully operating cafés in South San Francisco and the Bay Area
• Daily on-site management support for café staff during morning opening procedures
• Local support for café staff just minutes away, including coverage for sick calls, supply needs, customer service complaints, etc.
• Food prepared offsite at nearby kitchen; the kitchen at Library | Parks and Recreation Center can remain available for other uses
• Staffed hours of operation includes Saturdays, no reliance on vending machines
• Sustainability of business operations is not dependent on catering business opportunities resulting in additional revenue
As part of the evaluation process, the team conducted a site visit to the leading proposer, Morning Vibes Café, a San Francisco-based café owned and operated by Haydee M. Mata and Victor G. Caicero, who also own and operate Antigua Coffee Shop in South San Francisco. During the visit, food and beverages were sampled to further assess Morning Vibes Café’s operational capacity, quality of offerings, and overall readiness to operate at LPR. The visit confirmed Morning Vibes Café’s high-quality offerings, welcoming atmosphere, and responsiveness to operational questions, demonstrating their readiness to operate at LPR.
Based on the evaluation of written proposals, interviews, and the site visit, Morning Vibes Café was selected as the preferred café operator due to its demonstrated operational experience, quality, diverse and affordable offerings, strong customer service, and clear vision for a successful operation at LPR.
FISCAL IMPACT
There will be no cost or negative impact to the General Fund. The café operator will fund its own tenant improvements, routine maintenance, and preventive care, and will reimburse the City for the cost of utilities. Under the proposed lease terms, the café operator may qualify for a tenant improvement credit applied against the minimum monthly rent up to a maximum of $720 - essentially a waiver of three months’ rent - during the anticipated tenant improvement period. This concept is similar to that adopted by the City’s Launch Local program, which was approved by City Council in 2025.
The lease revenue structure includes:
• Minimum Monthly Rent: $240.00 per month
• Percentage Rent: Year 1: 3% of monthly Gross Sales; Year 2: 3.5% of monthly Gross Sales; Year 3+: 4% of monthly Gross Sales
Projected sales and net revenue are estimated at approximately $3,300 per month during the first year of operations. Furthermore, staff will work closely with the tenant to address any operational concerns during the build out to minimize impact to facility patrons.
RELATIONSHIP TO STRATEGIC PLAN
Adding the approved café operator to LPR contributes to the major focus area addressing quality of life, delivering services and amenities to address community needs and supporting South San Francisco business owners. The café will enhance the community hub by supporting social connection, hosting events, and establishing partnerships, further strengthening community engagement, lifelong learning, and the value of shared public spaces.
CONCLUSION
Approving the Lease and Concessionaire Agreement with Morning Vibes Café will enhance the Library | Parks and Recreation Center as a well-utilized community facility by supporting social well-being, encouraging community gathering, and providing functional spaces for work and recreation. The café’s operations and programming will complement existing Library and Parks & Recreation services, strengthen community engagement, and provide long-term benefits to residents and visitors.