REPORT TO COUNCIL
SUBJECT
Title
Authorize an Amendment to the Agreement with Active Network, LLC for Recreation Management System Software to Increase the Not-to-Exceed Amount by $574,978 and Extend the Term by Nine Years (F26-382)
Report
REPORT IN BRIEF
Approval is requested to authorize an amendment to the product and services agreement with Active Network (ActiveNet), LLC of Plano, Texas, to increase the agreement amount by $574,978 and extend the agreement term by nine years. The amendment would increase the not-to-exceed amount from $206,980.75 to $781,958.75.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, contracts for this type of service are awarded pursuant to a Request for Proposals (RFP) best value process, unless otherwise exempt from the competitive bidding process. Additionally, City Council approval is required for the procurement of goods and/or services exceeding $250,000 in any one transaction.
Further, Section 2.08.070(b)(3) of the Sunnyvale Municipal Code, authorizes the purchase of goods and/or services to be exempted from the competitive bidding requirements when the solicitation of bids or proposals would be impractical, unavailing or impossible.
This purchase supports the City Council’s Responsive Governance Strategic Goal by:
maintaining and supporting reliable online registration, payments, and recreation program management; protecting sensitive customer and City data through continued vendor support and cybersecurity updates; and planning for service continuity and predictable costs over a nine-year term.
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)(5) in that it is a governmental organization or administration activity that will not result in direct or indirect physical changes in the environment.
BACKGROUND AND DISCUSSION
The City issued an RFP for recreation management system software on December 16, 2024. The City received six responsive proposals, and Active Network, LLC received the highest evaluation score. Due to unplanned system stability and functionality issues with the prior vendor, the City accelerated negotiations with ActiveNet and determined that implementing a one-year agreement would best support city operations and user experience (Attachment 2), with the understanding that a longer-term contract would be brought to City Council for approval once the stable system was in place.
The Library and Recreation Services Department uses ActiveNet for program registration, facility and reservation management, memberships and passes, point-of-sale transactions, customer account management, reporting, and related recreation-service operations. The ActiveNet system provides a secure, supported platform for public-facing registration, reservations, and payment processing.
The proposed amendment (Attachment 1) will increase the agreement amount by $574,978 and extend the term by nine years to provide continued software maintenance and support at a fixed and predictable cost. These services include vendor-hosted software access, security patches, updates, bug fixes, product releases, performance improvements, and technical support necessary to maintain the security, reliability, and continued operation of the City’s recreation management system.
Active Network, LLC provides the City’s existing ActiveNet software platform and is the only source for the vendor-hosted environment, product releases, security patches, and technical support required for that platform. Replacing ActiveNet would require a separate system replacement project, including data migration, configuration, testing, implementation, and staff training, and would create substantial cost, delay, and risk of disruption to public recreation services. A new competitive solicitation for these services within the next ten years would be impractical and unadvisable, unless the City encounters specific unreconcilable challenges with ActiveNet. Should that occur, staff would return to Council with options.
FISCAL IMPACT
This action will not require a budget modification or change to the City’s 20-year Resource Allocation Plans. Funding for software maintenance and support for Active Network LLC’s ActiveNet application through FY 2027/28 is available in Fund 7027 - Technology and Communication Services Fund under Project 837340 - VSI Replacement (Attachment 3).
Beginning in FY 2028/29, funding for ActiveNet maintenance and support will be incorporated in the operating budget in Fund 7027 using planned project operating appropriations already included in project 837340 - VSI Replacement.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Approve an amendment to the product and services agreement with Active Network, LLC, for recreation management system software in substantially the same form as Attachment 1, to increase the agreement amount by $574,978, for a new not-to-exceed amount of $781,958.75, and extend the agreement term by nine years;
- Authorize the City Manager to execute the amendment when all necessary conditions have been met; and
- Authorize the City Manager to amend the agreement within the nine-year amendment timeframe, and to increase compensation subject to budget availability, need, and negotiated pricing.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Kathleen Boutté Foster, Director, Information Technology
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS:
1. Draft Amendment to the Product and Services Agreement with Active Networks, LLC
2. Original Product and Services Agreement with Active Networks, LLC
3. 837340 Budget Project Summary