Title
Extend Contract with Active Network, LLC for Recreation Management System (Ordinance S-44041)
Description
Request authorization for the City Manager, or his designee, to extend Contract 130050 with Active Network, LLC on a month-to-month basis, for up 12 months, to allow continuity of service while negotiating a new recreation management system contract.
Report
Summary
Active Network, LLC (Active Net) provides the City with a hosted recreation management software product that allows online recreation program registration, facility rental and on-site point of sale. It tracks memberships, generates reports and processes fee payments. It is a critical system to manage the Parks and Recreation Department, facilitating the payment of an average of $4 million annually for fee-based recreation programs and facility rentals.
The revenue the City receives pays for the recreation programs offered by the Parks and Recreation Department. This software product is a transaction-based model in which Active Net assumes the responsibility for collecting revenues and meeting Payment Card Industry (PCI) standards for credit card payments, and remits the revenue to the City. There are no General Fund expenditures required to purchase or maintain the Active Net recreation management system. The current contract with Active Net expires on Nov. 23, 2017.
A recent Request for Proposals (RFP) process has caused a delay in the implementation of a new recreation management system contract. An extension of the contract with Active Net will allow the Parks and Recreation Department to maintain customer service to the public while staff negotiates a new contract.
Procurement Information
An RFP process was conducted October through December of 2016. On March 1, 2017, City Council awarded the contract to Rec 1, the highest-scored proposer. On July 13, 2017, Rec 1 withdrew from contract negotiations. Staff subsequently began discussions with the second-highest-scored proposer. The extension will allow negotiations to continue without interruption of service to the public.
Contract Term
The contract with Active Net shall be extended on a month-to-month basis, for up to 12 months, beginning on or about Nov. 24, 2017.
Financial Impact
The current recreation management contract generates an average of $4 million annually through fee-based recreation programs and facility rentals. Active Net collects this revenue and remits it to the City twice monthly. There is no impact to the City's General Fund.
Concurrence/Previous Council Action
On March 1, 2017, City Council awarded the contract to the highest-scored proposer, Rec 1.
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Parks and Recreation Department.