REPORT TO COUNCIL
SUBJECT
Title
Award of Contract for Gymnastics Instruction Services and Camp Programs (F16-101)
Report
REPORT IN BRIEF
Approval is requested to award a contract for gymnastics instruction services and camp programs offered to the public through the City’s Community Services Division to California Sports Center for a two-year period, with an option to renew for one additional one-year period.
EXISTING POLICY
Section 2.08.070(b) of the Sunnyvale Municipal Code allows exemptions from competitive bidding in certain circumstances, including professional or specialized services such as recreation instructors.
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(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
It is typical to contract with private firms to teach Community Services Division classes and camps. The revenue generated by the programs is shared between the City and the contracting firm. On February 26, 2013, Council approved the award of a contract to California Sports Center (RTC No. 13-043) for recreational gymnastics classes. This contract is due to expire on April 30, 2016; and therefore, staff requests the award of a new contract.
Since contracting with California Sports Center, the City has seen a significant increase in gymnastics class enrollment with a corresponding increase in revenue generated by the program. In FY 2014/15, the program had 3,075 participants, an increase of 17% over FY 2013/14, which had 2,619 participants. As gymnastics will be a highlight of the 2016 Summer Olympics, staff also anticipates an increase in participation, based on the increased interest in the program that occurred after the last Olympics in 2012.
FISCAL IMPACT
Customarily, the City establishes not-to-exceed amounts for the purchase of goods and services. As this is a shared revenue contract with a goal of increasing instructional offerings, a not-to-exceed limit is unnecessary. California Sports Center will be paid 73% of the resident registration fee for all gymnastics classes and 80% for camp program participants, less refunds. The remaining 27% and 20%, respectively (and non-resident differential) will be retained by the City to offset administrative costs of providing facilities and equipment, promoting programs, registering participants, contract management and responding to customer service inquiries.
Over the most recent two-year period for which complete data is available, the total fee revenue was $759,403, with $547,048 going to the contractor and $212,355 retained by the City. The estimated contract value is $424,000 per year, based upon anticipated enrollment and a fee increase of 3% in September 2016.
Funding Source
Recreational programs are funded by the General Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Award a two-year contract to California Sports Center to provide gymnastics instruction services, in substantially the same form as Attachment 1 of the report and authorize the City Manager to execute the contract; and 2) Delegate authority to the City Manager to renew the contract for an additional one-year period, provided pricing and service remain acceptable to the City.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Acting Director, Department of Finance
Reviewed by: Cynthia E. Bojorquez, Director, Library & Community Services
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENT
1. Draft Services Agreement