DATE: February 18, 2025
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Derek Schweigart, Parks and Recreation Director
Tiffany Oren, Recreation Manager
SUBJECT: AWARD OF CONCESSION AGREEMENTS FOR KITEBOARD
LESSONS, RETAIL, RENTAL AND DEMONSTRATIONS AT BAYWINDS
PARK FROM APRIL 1, 2025 THROUGH DECEMBER 31, 2027, WITH OPTIONAL EXTENSIONS THROUGH DECEMBER 31, 2029
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution awarding concession agreements to Wind Over Water and The Kite School for Kiteboard Lessons, Retail, Rental and Demonstrations at Baywinds Park from April 1, 2025, through December 31, 2027, with optional extensions through December 31, 2029; and authorizing the Mayor to execute the concession agreements and authorizing the City Manager to exercise the two optional extensions.
EXECUTIVE SUMMARY
For over twenty years, Foster City has offered a windsurfing and kiteboarding concession at Bay Winds Park located on East Third Avenue in Foster City, providing lessons, retail, rentals, and demonstrations for both experienced and novice participants at this popular destination. On June 15, 2020, Wind Over Water LLC and the Kite School were approved for concession agreements with the City for a two-year term ending on December 31, 2022, with optional extensions through December 31, 2024. On December 2, 2024, the City Council authorized staff’s request to issue a new Request for Proposal (RFP) to continue providing these services at Baywinds Park.
The RFP opened on December 9, 2024, and was published to potentially qualified vendors. Two bids were received by the January 2, 2025, bid deadline. Both bids received were from existing vendors currently operating at the site, The Kite School and
Wind Over Water.
BACKGROUND/ANALYSIS
The Foster City Parks and Recreation Department has offered a windsurfing and kiteboarding concession at Bay Winds Park on East Third Avenue for over twenty years to provide lessons, retail, rental and demonstrations for both experienced and inexperienced participants at this popular kiteboarding destination. The Bay region adjacent to Baywinds Park is well known as a premier location among the kiteboarding community offering optimal wind conditions necessary for the sport.
The Parks and Recreation Department is committed to maximizing access to the park system through a variety of services and activities. Concession agreements enhance these offerings by enabling private and non-profit agencies to provide services on City property that the Parks and Recreation Department cannot directly offer. Additionally, fees charged for the right to conduct business on City park property reimburses the City for its actual and reasonable costs to manage the Concession agreements. These agreements are time-limited, allowing both the City and the concessionaire to evaluate the service and its terms, while also providing opportunities for other organizations to be considered for providing the service.
The Kiteboarding "season" is typically from March through October, so it would be ideal to enter into an agreement as soon as reasonably possible to allow the concessionaire(s) to take advantage of the full season. Both The Kite School and Wind Over Water have proposed operations that align with this schedule.
The RFP opened on December 9, 2024. Staff sent invitations to five qualified vendors to submit bids. Section 3.04.080 requires that the City’s Purchasing Authority analyze the proposals received and make a recommendation to the City Council. Two bids were received by the January 2, 2025 bid deadline, both from existing vendors currently operating at the site, The Kite School and Wind Over Water. Based on the vendors’ history of successfully operating at the site, a dedicated customer base and over 20 years of experience each. Staff recommend renewing agreements with both companies.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
The approval of the concession agreements with the Kite School and Wind Over Water are not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.
FISCAL IMPACT
The City charges vendors a $1,000 annual concession fee plus a $500 monthly fee for the use of City park property. As a result, both The Kite School and Wind Over Water would each generate a total annual revenue of $4,500 for the City.
The revenue total is equal to $1,000/year per vendor, and each vendor pays $500 a month from April to October (total seven months).
The annual concession fee [partially] reimburses the City for its actual and reasonable costs to manage the agreements. On average, the City’s cost to manage each agreement per season for seven months from April to October is $1,050. The $500 monthly fee is imposed for the Vendors’ use of Baywinds park. In December 2024, the San Mateo County Office of the Assessor provided a ballpark estimate for the value of the land at Baywinds Park and indicated that the land would be valued at less than $100 per square foot, and used a conservative estimate of $50-$100 per square foot.
Each vendor uses 762 square feet of Baywinds Park, which means the total value of land each vendor uses is $38,100 (using an estimated value of $50 per square foot).
ATTACHMENTS:
Attachment 1 - Resolution Awarding Concession Agreement to The Kite School and Wind Over Water
Attachment 2 - Agreement with The Kite School
Attachment 3 - Agreement with Wind Over Water
Attachment 4 - The Kite School Proposal
Attachment 5 - Wind Over Water Proposal