HomeMy WebLinkAboutAgenda Report - December 21, 2016 C-09CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
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AGENDA TITLE: Authorize City Manager to Negotiate Boat House Concession Contract Extension
with Headwaters Kayak Shop
MEETING DATE: December21, 2016
PREPARED BY: Parks, Recreation and Cultural Services Director
RECOMMENDED ACTION: Authorize the City Manager to negotiate a Boat House concession
contract extension with Headwaters Kayak Shop.
BACKGROUND INFORMATION: The City entered into a concession agreement with Headwaters
Kayak Shop on April 1, 2014, turning over non -motorized boat
rentals at Lodi Lake Park to the Lodi company in return for 15
percent of gross revenue. The contract expires on March 31, 2017.
The agreement has proven financially beneficial to the Parks, Recreation and Cultural Services (PRCS)
and the department has an excellent relationship with Headwaters Kayak Shop. PRCS' annual Boat
House revenue has nearly tripled since the City entered into the agreement with Headwaters. In addition,
the concessionaire has been an outstanding corporate citizen by promoting Lodi Lake, participating in
lake cleanup activities, providing free paddling activities for injured war veterans, and other community
activities, such as sponsoring PRCS'
75th anniversary celebration this year.
Now that we have three seasons of positive experience, we are interested in executing a longer-term
contract without soliciting multiple proposals (Headwaters was the only respondent in 2014). A long-term
concession agreement will give Headwaters the confidence to make investments in the Boat House,
inventory, and mutually beneficial improvements. The parties have tentatively agreed to a five-year term
plus a series of two-year extensions. The City will continue receiving 15 percent of gross revenue. Other
changes will address operational requirements in the original agreement that will have no impact on the
City.
On November 1, the Parks and Recreation Commission voted unanimously to recommend the City
Council endorse this proposed action. The Council will be asked to approve the contract at a future date.
FISCAL IMPACT: Headwaters has increased annual Boat House revenue by nearly
$10,000 and a longer agreement will likely increase that amount.
FUNDING AVAILABLE: Not applicable.
JH:tI
cc: City Attorney
Jeff Hoo
Parks,Ffecreation and Cultural Services Director
APPROVED:
ager