SUBJECT/RECOMMENDATION:
Title
Approve a Lease Agreement between Clearwater Ferry and the City for ferry vessels purchased under FDOT JPA Agreement G2S84 and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The City has always had an interest in connecting downtown and Clearwater Beach with alternative forms of transportation. Some of the reasons for the interest are reducing traffic on Memorial Causeway, addressing parking shortages on the beach and providing tourists with other avenues for entertainment.
RFP #35-16 was released on May 10, 2016, to evaluate the potential for a scheduled water taxi service in Clearwater providing waterborne transportation between Downtown Clearwater, Clearwater Beach Marina, and the Clearwater Beach Recreation Center. Since November of 2016, Clearwater Ferry Services Inc. has been the sole provider of this service for the city with the routes changing periodically during this time.
In July of 2023 the City entered into the Second Amendment and Second Extension to Water Taxi Operation Agreement between the City of Clearwater and the Clearwater Ferry Service. The agreements included the Ferry requested subsidy, in the amount of $500,000 in multiple payments through October of 2027, designed to help cover the operating costs required to service the Clearwater routes and regular schedules (Friday-Sunday from 10 AM - 9:30PM). The City requires Clearwater Ferry Services Inc. to provide a minimum of two vessels for the routes and incorporates a penalty in the event a vessel is out of service for an extended period. Marine and Aviation is responsible for maintaining the ferry landings. The amended routes and schedules were specifically designed to facilitate the activation of downtown and Coachman Park by connecting the City’s Downtown Harbor Marina and Clearwater Beach Marina by an alternative means of transportation. The operating agreement extends until September 30, 2033.
On March 7, 2024, Council approved FDOT JPA Agreement G2S84 provided for an 83% grant from FDOT for the purchase of vessels, refurbishment/construction of docks, and water transportation service, with a 17% cash match from the City. The project cost was $1,200,000 with FDOT contributing $1,000,000 in grant funding and the City of Clearwater contributing up to $200,000 in matching funds. The grant allowed for up to $800,000 of grant funds to be used for the purchase of vessels and the refurbishment and construction of docks and up to $200,000 of grant funds to be used for water transportation service operations including maintenance and supplies.
On March 8, 2024, the City published RFP 32-24 for the purchase of two pontoon or tritoon vessels for conducting ferry services on the beautiful intercoastal waters on the west-central coast of Florida. On April 18, 2024, the evaluation committee representing City Manager’s Office, Marine and Aviation and a representative from Clearwater Ferry selected Trident Pontoons, Inc. for the purchase of the two ferry vessels. The vessels were built in accordance with specifications outlined in the RFP and the Agreement.
The vessels have been delivered. The City would like to enter into a lease agreement with the Clearwater Ferry to license and operate the vessels in compliance with the Second Amendment and Second Extension to Water Taxi Operation Agreement. The Ferry is responsible for all maintenance, registration, licensing and insuring of the vessel. The Ferry agrees to indemnify the City against all liabilities, demands, claims and suits related to the vessels. The City is agreeing to the lease for the nominal amount of $1 in exchange for the Ferry’s performance of the contract terms.
APPROPRIATION CODE AND AMOUNT:
Annual $1 payment from Clearwater Ferry to be coded to the General Fund.
STRATEGIC PRIORITY:
High Performing Government: 1.2 Maintain public infrastructure, mobility systems, natural lands, environmental resources, and historic features through systematic management efforts.
Economic & Housing Opportunity: 2.2 Cultivate a business climate that welcomes entrepreneurship, inspires local investment, supports Eco-friendly enterprises, and encourages high-quality job growth.
Community Well-Being: 3.2 Preserve community livability through responsible development standards, proactive code compliance, and targeted revitalization.
Environmental Stewardship: 4.4 Develop accessible and active transportation networks that enhance pedestrian safety and reduce citywide greenhouse gas emissions.
