CITY OF HALLANDALE BEACH

MEMORANDUM

DATE: August 12, 2008

TO:                  D. Mike Good, City Manager 

FROM:            Rebecca Munden-Correa, Director of Parks and Recreation

SUBJECT: Consideration of a Vendor Contract for Beach Amenities:

PURPOSE:

The purpose of this item is to consider the feasibility of contracting with a vendor for the rental of beach amenities, such as chairs, umbrellas and water sports/crafts as a new source of revenue.

BACKGROUND:

The City Commission and the City Manager have discussed the possibility of additional concessions at the City’s Beach and directed staff to provide additional information regarding the feasibility of such additional concessions and the preparation of a Request for Proposals.

DISCUSSION

Currently, the Beachside Café is providing rental of chairs and umbrellas at the north beach and the Beach Club Condominium is also providing beach chairs and umbrellas to its residents directly behind the Beach Club. There is currently no provision for beach chairs and umbrellas at the South Beach. In addition to beach chairs and umbrellas, staff considered the feasibility of personal watercraft and non-motorized watercraft and amenities such as canoes, kayaks and other beach related amenities.

Benefits

With regard to economic feasibility, working with vendors will provide a revenue source for the City.  A Request for Proposals (RFP) would be sent out with the assistance of General Services.  The City could either receive a set monthly fee, a percentage of sales or a combination of both. 

The City of Fort Lauderdale indicated its minimum annual concession fee for motorized watercraft concession would be $20,000.00 for the first year and up to $30,000.00 by the third year.  The City of Hollywood signed a contract in 2005 with a company to provide public beach rental equipment and cabanas at $36,000.00 the first year with annual increases of 5% each year until 2010.

In preparing a Request for Proposals, staff would include consideration of maintaining a safe and accessible beach.  It is anticipated that a buoy system would be deployed in a manner to maintain maximum available beach and water access and at the same time ensure all of the beach patrons’ safety.

Any vendor would be required to maintain adequate liability insurance and that staff would work with the City Attorney’s office in preparing the RFP in order to ensure all legal issues are appropriately addressed, including the preparation of an appropriate Waiver Form to be required of all persons making use of these facilities. Staff would also coordinate with all necessary departments to ensure all safety and logistical issues are properly addressed in the RFP and any proposed concession agreement and that all guidelines, policies and procedures are adhered to in this process.

It is anticipated that approximately that initially, annual revenue in the amount of $20,000 would be generated.  Further, the fee booklet would include appropriate concessionaire fees.

RECOMMENDATION:

The City Commission authorize the City Manager to establish concession fees, and award concession contracts in the best interest of the City.

Reviewed:

_______________________________                                                          __________

D. Mike Good, City Manager                                                                             Date

_____Approved                _____Disapproved                _____Hold for Discussion