DATE: June 17, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: AMENDMENT 4 TO THE MASTER CONCESSIONAIRE PROPERTY USE AGREEMENT (BEACH VENDING) WITH MAINSTREET OCEANSIDE, INC.
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 4 to the Master Concessionaire Property Use Agreement with MainStreet Oceanside, Inc., to extend the term for two additional years commencing on July 15, 2026 and terminating on July 30, 2028 and authorize the City Manager to execute the amendment upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
On July 6, 2005, the City of Oceanside (“City”) entered into a Master Concessionaire Property Use Agreement (“Agreement”) with MainStreet Oceanside, Inc. (“Permittee”) to provide the services required of a master concessionaire with respect to the management and supervision of vendors and concessionaires of beach related services (i.e., bike & water sports rentals, food, beverages, snacks, clothing, beach accessories, souvenirs, etc.) to the general public.
Per the Agreement, beach related services must be situated on City-owned property east of The Strand roadway right-of-way (“Premises”) between Breakwater Way to the north and Wisconsin Street to the south. Additionally, Permittee is prohibited from operating west of The Strand roadway right-of-way and will not be allowed to have mobile vending and concessionaire operations in said area.
The original Agreement provided for an initial term of five years and expired on July 14, 2010. Amendment 1 approved on December 7, 2016 extended the agreement to July 14, 2020, Amendment 2, approved on June 3, 2020, extended the term through July 14, 2023 and Amendment 3 approved on June 7, 2023, extended term through July 14, 2026. Permittee has requested to exercise its option to extend.
The proposed Amendment 4 provides for a two-year term and one one-year extension option, to be provided at the City’s sole discretion, subject to approval by the City Council. Staff is recommending approval of Permittee’s formal request.
Reconstruction of the Oceanside Municipal Pier Bridge is anticipated in the near future and once such construction is formally scheduled to begin, the City will provide notice to the Permittee to vacate all vendors located in the plaza area north of the Amphitheatre. It’s anticipated that the Beach Vending Agreement with MainStreet Oceanside will be revisited once the Pier Bridge re-construction is completed as it would be an appropriate time to re-evaluate the current contracted vending model.
FISCAL IMPACT
|
Description |
Three-Year Average Annual Amount |
Prior Three-Year Percentage Rent Income |
Revenue Account |
|
MainStreet Percentage Rent Revenue |
$16,800 |
$50,399 |
PM R&L - City 1101.4351 |
Permittee pays percentage rent annually based on a tiered schedule. Percentage rent was collected for prior last three years in the amount of $50,399, that averages out to $16,800 annually. Percentage rent received will be deposited into account 1101.4351.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Julie Cook, Property Agent II
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Amendment 4
2. Property Use Agreement
3. Amendment 1
4. Amendment 2
5. Amendment 3