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Hernando Today

Bidding For The Beach Rights

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By MICHAEL D. BATES

Hernando Today

Published: February 21, 2009

PINE ISLAND - For some 18 years, Willy's Tropical Breeze has been selling food and cold drinks to beach-goers at Pine Island.

County commissioners have been pleased with owner Willie Kochounian's concession service. He's had consistently good health inspections and there haven't been any complaints about operations there, Parks Director Pat Fagan said.

That's the reason why commissioners keep extending their lease contract with Kochounian every five years.

That contract has gone up through the years - from $9,500 annually, as stipulated in that first contract in September 1991 (with additional payments of $1,000 a year through 1996) to the current $18,000 a year set forth in the most recent contract signed in 2006.

His current contract is adjusted annually based on the Consumer Price Index, not to exceed $500 per fiscal year.

That ensures Willie's will be a fixture at the beach through 2011.

Except for that first contract in 1996, the county has not gone out to bid on the concession contract at Pine Island, Fagan said.

When this most recent contract expires, Fagan thinks it might be time to do so.

"At the end of this term of contract, it's something that definitely needs to be looked at, especially with economic conditions, to see if we can get more money for the operation," Fagan said.
Fagan admits he is hesitant about doing so because Kochounian has run such a "good, quality operation out there."

Not only that, but Kochounian regularly closes the parking lot gate leading into Pine Island, Fagan said.

"Sometimes it's not always about money," Fagan said. "He's a top-notch vendor and there have been no complaints from the public."

But bidding encourages competition, which could ultimately bring more money into county coffers. It also eliminates any perception one company or person is getting favors.
County Commission Chairman Dave Russell said the county is obligated to honor Kochounian's contract through 2011.

Russell, who was not involved with previous contract negotiations, said if he is still a commissioner in 2011, he will ask that the concession stand rights go out to bid, which he called the normal business procedure for the county.

"We should advertise it and entertain bids - not necessarily just on costs, but on service delivery and quality of service - particularly as it pertains to food and public health," Russell said.

County Attorney Garth Coller said there is nothing illegal about the concession contract because it includes a renewable clause.

Newly elected County Commissioner John Druzbick, who was also not on the board during any of the concession stand's contract renewals, agrees Kochounian runs a clean stand, maintains regular hours and provides a great service to beach-goers.

However, there is no reason the county should not bid out the job, as it does with other concession stands that come before the board.

"I don't know why it hasn't come up for bid," Druzbick said.

Of course, there is always a risk, he said.

Competing bids could drive up the cost and - should Kochounian rebid for the concession rights and win - be forced to hike up prices to make up for a costlier lease contract, Druzbick said.

But free market competition is healthy and should be encouraged, he added.

If it comes to bidding, Kochounian said he probably wouldn't participate. Not after all he's given to the county, he said.

"I don't think it would be fair for me to bid on it because I've done a lot for the county," he said.

Where else will the county find someone who will lock the gates at night and put up with the frequent harassment from some beachgoers who are reluctant to leave? Kochounian asked.

Kochounian said he's able to double as the gatekeeper because he lives on the island, only a couple streets down from his stand. Having the county pay for the service will be an added expense, he said.

Plus, many of the structures he has in place, including the decks, are not pre-fabricated and would have to be torn down.

"I'd have to tear everything out of here," he said. "I'm not going to leave it for the next person, I'll tell you that."

As for his current lease, Kochounian believes $18,500 is too much as it is, especially when other costs are added on such as the $387 a month he said he pays for liability insurance for being on the beach.

And because of high gas prices and the recent cold weather, business is down anyway, he said.

"I built this into something special," Kochounian said. "People come from all over the world to my place."

The Stats On The Island

•Parks Director Pat Fagan said he doesn't believe the imposition of a $2 parking fee at Pine Island represents a hardship for the public.

•That fee netted the county some $100,000 in 2008, down from 2006 and 2007 when it generated about $125,000, he said.

•One reason for the decline in revenue was because Pine Island was closed several times in 2008 for health and weather conditions.

•In 2008, 62 people opted to buy an annual parking pass for $40, Fagan said. So far this year, his department has sold 11 passes.

Reporter Michael D. Bates can be reached at 352-544-5290 or mbates@hernandotoday.com.

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