SUBJECT/RECOMMENDATION:
Title
Approve an Agreement between the City and Alexandra of Clearwater Beach, Inc. (Alexandra), Clearwater, Florida for the operation and maintenance of the Pier 60 Concessions located at 10 Pier 60 Drive from March 1, 2017 through February 28, 2022, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
On October 21, 2016, the city purchasing office issued RFP (Request for Proposals) 02-17 for operation and maintenance of Pier 60 Concessions. The City received two proposals that were reviewed and ranked by city staff, who recommended Alexandra for the operation and maintenance of Pier 60 Concessions.
An agreement between both parties has been negotiated for a term of five years with one renewable term of five years. This item is the culmination of these negotiations and city staff is recommending approval by the City Council.
The current agreement with Alexandra to operate Pier 60 Concessions expires on February 28, 2017.
Included in the agreement is a guarantee return of $170,000 per year ($50,000 due the first day of each agreement year and $10,000 per month X 12 months) 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 they will provide 50% of gross sales for all beach rentals.
Over the past 3 years (2013 to 2015), gross revenue has increased from just over $2 million to $2.4 million, or approx. 20%, and there is no indication that the revenue projections will decrease in the coming years.
Additional in kind services and financial investments made by Alexandra include the following:
a. Clean, service and monitor restrooms at Pier 60 Concessions twice daily, 365 days per year
b. Clean, service and monitor restrooms at Rockaway twice daily, 365 days per year
c. Empty trash containers at Pier 60 Park once daily, 365 days a year, replace can liners
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.
In Fiscal Year 2016, the City generated $610,626 from this agreement and projects $723,350 in Fiscal Year 2017 and $790,579 in Fiscal Year 2018.
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: N/A
USE OF RESERVE FUNDS: N/A