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 and Pier 60 Concessions, located at 332 South Gulfview Boulevard and 7 Causeway Boulevard, respectively, from March 1, 2027 to February 29, 2032; three additional five-year terms, and authorize the appropriate officials to execute same.
Body
SUMMARY:
RFP 20-26 had two responders, and the selection committee selected Fields, Inc. based on experience and financial yield to the City. Fields, Inc. has been the operator of both the Barefoot Beach House and Pier 60 Concession stand for the past two decades. During this time Fields, Inc. has provided exceptional food concession services and cabana rentals to residents and visitors of Clearwater Beach. In addition, they have provided capital improvement funds to improve and repair city facilities on the beach and have contributed to the support of the Clearwater Beach Lifeguards.
Fields, Inc. has been the successful vendor for the past four Request for Proposals (RFP’s) for both the Barefoot Beach House and Pier 60 Concessions.
Fields, Inc. has played a role in the success of the Beach by providing vital concession services over the past two decades and it is anticipated that they will continue to be an important partner in the future.
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 both the Barefoot Beach House and Pier 60 Concessions expires on February 28, 2027 while this new agreement will begin on March 1, 2027.
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 guaranteed base rent of $240,000 per year for operation and use of both concession buildings as well as an additional percentage of gross sales above $1.5M starting at 20 percent and increasing to 25 percent at $3M or more. In addition, Fields will provide 50 percent of gross sales for all beach rentals. Based on the last three years, the City received an average of $2.7 million per year from beach rentals.
Additional financial investments made by Fields, Inc. included in the agreement include $5,000 per year for the lifeguard operations on Clearwater Beach and capital funds of $100,000 per year for capital improvements and renovations to the Concession Complex.
The agreement includes 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.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
STRATEGIC PRIORITY:
Approval of the lease agreement supports several Strategic Plan Objectives including:
• 1.1: Provide evidence-based measurement tools to continually guide municipal performance and promote accountable governance.
• 1.3: Adopt responsive levels of service for public facilities and amenities, and identify resources required to sustain that level of service.
• 1.5: Embrace a culture of innovation that drives continuous improvement and successfully serves all our customers.
• 2.1: Strengthen public-private initiatives that attract, develop, and retain diversified business sectors.
• 2.2: Cultivate a business climate that welcomes entrepreneurship, inspires local investment, supports Eco-friendly enterprises, and encourages high-quality job growth; and
• 2.3: Promote Clearwater as a premier destination for entertainment, cultural experiences, tourism, and national sporting events.
