Well, I had taken that picture when we were at the beach one day shortly after we first moved here. My guess at the time was it was a jelly fish and I Googled to try and find out what type it was and didn't have any luck figuring it out. Well, after I posted the picture yesterday I decided to try again and Googled "clear and blue jellyfish". If I am correct it is The Portuguese Man o' War (Physalia physalis), also known as the blue bubble, blue bottle, man-of-war, or the Portuguese man of war (not technically a jelly-fish).
It wasn't very big, it could have fit in the palm of my hand. Luckily I was the one who found it and not one of the kids. A sting from one is apparently pretty painful. After I spotted it I picked it up with a shovel and threw it away down the beach.