REPORT TO COUNCIL
SUBJECT
Title
Action on Amendments to Ten (10) Vendor Agreements for Recreational Programming Services in the Parks & Recreation Department for a revised not-to-exceed aggregate maximum compensation amount of $6,206,130, subject to budget appropriations, in final forms approved by the City Attorney.
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Parks & Recreation Department (Department) manages and maintains the City's park system, recreation facilities, pools, and cemeteries, as well as provides recreation programs, services, and activities that contribute to the vitality, health, and wellness of the community. The Department’s recreation programs serve over 30,000 participants per year and generated over $2.5 million in revenue in FY 2022/23. Programs are offered at various program facilities across the City and promoted through the Department’s published seasonal activity guides.
In November 2018, the City conducted a Request for Proposal (RFP) process to identify qualified vendors to provide recreational programming services. On June 25, 2019, the City Council approved the execution of eighteen (18) agreements with an initial term of five years and five (5) one-year options, extending the terms of the agreements through June 30, 2029 (Attachment 1). These agreements provided for program revenue to be split between the City and the vendor, with the vendor receiving 60% to 70% of gross revenue per participant.
In addition, the original Council approval included authorization to increase the maximum compensation of each individual agreement up to 15% above the originally approved maximum compensation, subject to budget appropriations.
Of the original 18 vendor agreements approved by the City Council in June 2019
four (4) of the vendors are no longer working with the City (Chaparral Country Corporation, Code for Fun, Lil Sluggers, and Renee Ramsey). At this time, the Department of Parks and Recreation would like to amend the agreements with the remaining fourteen (14) vendors to provide for a single, five-year extension in the term of the agreements rather than proceed with 5, one-year options as provided for in the original agreement. This action will maintain continuity of services and provide efficiencies in administering the agreements with these vendors who have provided high-quality, diverse, and specialized programming options to the community over the term of their respective agreements.
Four (4) of the proposed amended agreements would have a not-to-exceed compensation amount that are within the City Manager’s signature authority and therefore, are not included in this report. These four (4) vendors are as follows: Justin Fujihara, Play-Well Technologies, Sports, Fitness & Karate, and Starrz Dance Academy.
The proposed amendments for the remaining ten (10) agreements will cause the not-to-exceed compensation amount to surpass the City Manager’s signature authority and, therefore, are presented to the City Council for consideration and approval.
DISCUSSION
During the current term of the agreements, (ending June 30, 2024), the ten (10) vendors have offered popular recreation enrichment programs to the public. The public has shown a very high level of enthusiasm for participation in these programs and activities and the Department has built a solid partnership with these vendors.
The proposed amendments increase the total not-to-exceed maximum compensation of the ten (10) vendor agreements by $2,526,130, from $3,680,000 to $6,206,130, effective July 1, 2024. The ten (10) amendments are required to continue providing these programs into the extended terms set forth in each agreement as indicated in the agreement amendments (Attachments 2-12) and are subject to budget appropriations in subsequent years. The amendments are funded by registration fees collected for the programs in the General Fund and require no budget amendments.
Please note that amendments were executed with seven (7) of the vendors in 2020 to allow for the addition of Virtual Programming Guidelines (VPG) and a corresponding adjustment to the schedule of fees (Amendment #1). The VPG provided for the provision of virtual classes to be offered as well as guidelines to be implemented related to hosting platforms, privacy, and classroom safety. Included in the amendments were a change in the revenue split for in-person programs from 60%-70% to an 80%-20% split for the vendor for virtual programming. As programs transitioned back to in-person programming, the revenue split reverted to the original agreement split.
The following Vendors executed Amendment No.1:
• Kimberly Davey
• Guru’s Educational Services
• Joyful Melodies
• Mad Science of the Bay Area
• Teacher Sean’s Music Factory
• Josh Rubietta
• Linnea Sheehy
The remaining three (3) vendors (Kidz Love Soccer, Kodenkan Jujitsu and Skyhawks Youth Sports) did not provide virtual programming and consequently, did not execute an amendment to do so.
Table 1 summarizes the proposed amendments included as part of this recommendation for City Council approval.
Table 1
|
Attachment No. |
Vendor Name & Program Category |
Amendment No. |
Current Not-to-Exceed Amount |
Proposed Not-to-Exceed Amount |
|
2 |
Kimberly Davey Ballet Dance Instruction |
2 |
$900,000 |
$1,310,130 |
|
3 |
Guru’s Educational Services Public Speaking Instruction |
2 |
$75,000 |
$145,000 |
|
4 |
Joyful Melodies Musical Instruction |
2 |
$95,000 |
$165,000 |
|
5 |
North American Youth Activities DBA Kidz Love Soccer Soccer Instruction |
1 |
$575,000 |
$710,000 |
|
6 |
Anthony Janovich DBA Kodekan Jujitzu School Jujitsu Martial Arts Instruction |
1 |
$135,000 |
$160,000 |
|
7 |
Nanogan Science & Services, LLC DBA Mad Science of the Bay Area Science Instruction |
2 |
$220,000 |
$325,000 |
|
8 |
Sean Mendelson DBA Teacher Sean’s Music Factory Children’s Music Exploration |
2 |
$400,000 |
$460,000 |
|
9 |
Josh Rubietta Music, Chorus and Performing Arts Instruction |
2 |
$300,000 |
$1,100,000 |
|
10 |
Linnea Sheehy Dance Instruction |
2 |
$830,000 |
$1,200,000 |
|
11 |
Southbay Youth Sports, LLC Sports Instruction |
1 |
$150,000 |
$631,000 |
|
Total: |
$3,680,000 |
$6,206,130 |
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 proposed amendments increase the total maximum compensation by $2,526,130, from $3,680,000 to $6,206,130, for the 5-year extension through June 30, 2029. Funding for the proposed amendments is offset by program revenues based on the revenue split between the vendor and the City as executed in the vendor agreements. Per the agreements, the vendors retain 60-70% and the City retains 30-40% of gross program revenues to cover City costs for marketing, facility-use and program administration. The program costs and revenues are factored into the annual budget.
COORDINATION
This report 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 <mailto: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 Amendments to the Agreements with the following ten (10) vendors to provide recreational programming services, in the respective not-to-exceed amounts and amended terms noted in this report, for a revised not-to-exceed aggregate maximum compensation amount of $6,206,130, subject to budget appropriations, in final forms approved by the City Attorney: 1) Kimberly Davey; 2) Guru’s Educational Services; 3) Joyful Melodies; 4) North American Youth Activities; 5) Anthony Janovich; 6) Nanogan Science & Services; 7) Sean Mendelson; 8) Josh Rubietta; 9) Linnea Sheehy; and 10) Southbay Youth Sports, Inc.
Staff
Prepared by: Kimberly Castro, Recreation Manager
Reviewed by: Cynthia Bojorquez, Assistant City Manager/Acting Director Parks & Recreation
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. File ID No. 19-456
2. Amendment No. 2 Kimberly Davey
3. Amendment No. 2 Guru’s Educational Services
4. Amendment No. 2 Joyful Melodies
5. Amendment No. 1 North American Youth Activities
6. Amendment No. 1 Anthony Janovich
7. Amendment No. 2 Nanogan Science & Services
8. Amendment No. 2 Sean Mendelson
9. Amendment No. 2 Josh Rubietta
10. Amendment No. 2 Linnea Sheehy
11. Amendment No. 1 Southbay Youth Sports, Inc.