SUBJECT/RECOMMENDATION:
Title
Approve an Agreement between the City and Fields, Inc. of Clearwater, Florida for the operation and maintenance of the Barefoot Beach House, located at 332 S. Gulfview Blvd., from January 1, 2015 to December 31, 2019, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
On September 4, 2014, the City Council approved staff rankings for Request for Proposals 35-14 for the operation and maintenance of the Barefoot Beach House (BBH) and directed staff to negotiate a lease agreement with Fields, Inc. of Clearwater, Florida for a term of five years with one renewable term of five years.
This item is the culmination of negotiations with Fields, Inc. and city staff and is being recommended for approval by the City Council.
The current agreement with Fields, Inc. to operate the BBH expires on December 31, 2014 while this new agreement will begin on January 1, 2015.
In many respects this agreement is similar to the current agreement however updated to meet new and current City and State regulations.
Included in the agreement is a guarantee return of $100,008 per year for operation and use of the concession building as well as an additional percent of gross sales above $750,000 starting at 20% and increasing to 25%. In addition, Fields will provide 50% of gross sales for all beach rentals. Based on 2013 gross revenue the City would receive $602,979 from Fields, Inc. in 2015 if there was no increase in business.
However, it should be noted that the gross revenue for 2014 has increased by approximately 13% and there is no indication that the revenue projections will decrease in the coming years.
Additional financial investments made by Fields, Inc. included in the agreement include $2,500 per year for the lifeguard operations on Clearwater Beach and capital funds totaling $401,000 to expand the rest room facilities at BBH and construct a new beach maintenance building for city staff at Mandalay Park.
The agreement is strengthened by adding language to include updated background checks and first aid training requirements for employees; improved accountability by requiring updated standards of operation manuals and procedures; and, flexibility to expand product lines and offerings to the public.
Funds generated by this agreement go into the general fund of the City.
This item supports the City Strategic Vision by providing not only quality facilities and improvements to maintain the City infrastructure but also provides efficiency in partnering with other local businesses to operate City owned facilities.
APPROPRIATION CODE AND AMOUNT:
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USE OF RESERVE FUNDS:
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