DATE: January 28, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: AMENDMENT 4 TO THE PROPERTY USE AGREEMENT WITH TOWER OPTICAL COMPANY, INC.
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 4 to the Property Use Agreement with Tower Optical Company, Inc., for the operation of six coin-operated binocular machines on the Oceanside Municipal Pier effective February 1, 2026 and terminating on January 31, 2029; and authorize the City Manager to execute the amendment.
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BACKGROUND AND ANALYSIS
Tower Optical Company, Inc. (“Permittee”) has been operating on the Oceanside Municipal Pier (“Pier”) since March 1989. The City of Oceanside (“City”) entered into an agreement dated March 5, 2014 (“Agreement”) with Permittee, Amendment 1 dated March 27, 2019, Amendment 2 dated December 18, 2019, and Amendment 3 dated January 25, 2023 for the ongoing operation of six coin-operated binocular machines on the Pier. The existing Agreement expires on January 31, 2025. At this time the Permittee has requested to extend the term of the agreement for three years.
The proposed Amendment 4 to the Agreement (“Amendment 4”) extends the term for three years commencing on February 1, 2026 and terminating on January 31, 2029, and the Permittee desires to continue to operate a total of six coin-operated binocular machines on the Pier. Four of the machines are located on the first hammerhead, and two of the machines are located at the base of the Pier. None of the machines interfere with pedestrian or vehicular traffic. The Permittee continues to remain responsible for the maintenance and upkeep of the machines and has agreed to repair and refurbish all six binocular machines at the Premises no later than January 31, 2026. This will include replacing any worn parts, repainting each viewer base and fully replacing any viewer that is not operable.
FISCAL IMPACT
|
Description |
3-year Average Annual Amount |
3-Year Total Amount |
Revenue Account |
|
Tower Optical Lease Payments |
$1,804 |
$5,412 |
1101.4351 |
The City receives 50 percent of the gross income generated from the viewing machines. The City has received an average of $1,804 per year from the Permittee in the past three years.
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. Staff Report
2. Amendment 4