REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 2 to the Agreement for Services between the City of Santa Clara and California Sports Center for gymnastics instruction
Report
BACKGROUND
Until 2018, the Parks & Recreation Department issued seasonal contracts to its recreation vendors to offer various recreation programs. The City’s Code requires that contracts over $100,000 receive City Council review and approval.
The Parks & Recreation Department selected California Sports Center (CSC) in 2000 through a competitive proposal process to be the City’s gymnastics program provider at the Earl Carmichael Park Gymnastics Center located at 3445 Benton Street. The City maintains the class registration software, advertising and marketing, facility maintenance and gymnastics equipment. CSC offers gymnastics, tumbling and trampoline programs, day camps, special events and gymnastics instruction for children and their parents beginning at 18 months through 18 years of age. CSC has grown the program to serve over 2,800 registrants in 2017, generating $434,509 in gross revenue.
The Department is reviewing its recreation vendor services and agreements and is bringing them into compliance with City policies and procedures. In November 2018, the City issued a Request for Proposal (RFP) for general and special interest recreation classes for Santa Clara residents, including gymnastics programs. As the vendor selection and contract negotiation process continues, existing vendor services are being extended and continued through 2019 to provide a smoother transition and complete the RFP process.
A new agreement with the California Sports Center was entered into on December 3, 2018 and agreement had a term of September 1, 2018 to December 31, 2018 for an amount of $99,000. The City entered into Amendment 1 on December 17, 2018 and further extended the term to February 28, 2019.
DISCUSSION
The vendor selection and negotiation process is expected to require several additional months. Amendment No. 2 will allow the City to continue to provide services during this period which includes the busiest portion of the year.
Amendment No. 2 extends the term of the Agreement through December 31, 2019 to provide services to our residents for gymnastics classes, programs and related activities, and increases the total not to exceed amount by $501,000 from $99,000 to a new total not to exceed Six-Hundred Thousand Dollars ($600,000). The contract amendment amount is based on the estimated revenue generated from gymnastics classes for 2019.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve commitment to a specific project which may result in potential significant impact on the environment.
FISCAL IMPACT
The Amendment increases the not to exceed amount of the Agreement to $600,000; however, the amended agreement creates the potential for $821,900 in gross General Fund revenue, of which the City would retain net revenues of between 27% (for the majority of the programming) and 10% (for camps, special programs, and team development programs), which will offset the cost to the City to support the program. Funding for this Agreement, as amended, will be generated through General Fund program revenues received over the course of the year from class registration fees and course material fees.
COORDINATION
This Amendment has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to execute Amendment No. 2 to the Agreement for Services between the City of Santa Clara and California Sports Center in the not to exceed amount of $600,000 for gymnastics instruction and services.
Staff
Reviewed by: James Teixeira, Director of Parks & Recreation
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Agreement for Services with California Sports Center
2. Amendment No. 1 to Agreement for Services with California Sports Center
3. Amendment No. 2 to Agreement for Services with California Sports Center