April 19, 2005

SUBJECT: Award of Contract to Provide Youth Sports Classes and Camps for the City’s Recreation Program (F0404-56)

Approval is requested for the award of a one-year contract to Skyhawks Sports Academy of Spokane, Washington, with an option to extend the contract for an additional one-year period, to provide youth sports classes and camps for the City’s Recreation Program.

For a number of years, the City has offered youth sports classes and camps to the public through its Recreation Program. As is typical with Recreation Program classes, the City contracted with private firms to teach the classes; and revenue generated was shared between the City and these firms.

For many years, the City has contracted with Skyhawks Sports Academy to provide youth sports camps under the City Manager’s contract award authority. Recently, their services have expanded to include sports classes as well. Skyhawks Sports Academy was selected because it has a well-established sports program that offers a variety of sports for children, and it operates sports camps and classes for a large number of cities throughout California and in several other states. The current one-year contract began on January 1, 2005.

Since contracting with this firm, the City has seen an increase in revenue for youth sports camps. During 2005, approximately 900 children participated in the sports camps provided for the City by Skyhawks Sports Academy; and it is expected that participation will increase in years to come, based on the overall quality of the services offered by Skyhawks Sports Academy.

The company is paid 80% of the resident registration fees collected for sports classes and camps minus any refunds. The remaining 20% is retained by the City to offset the cost of handling class and camp registrations.

The current contract term will not end until December 31, 2005; and it is anticipated at this time that total payments to Skyhawks Sports Academy under the existing contract will be significantly more than the City Manager’s contract award authority. Staff, therefore, recommends that the existing contract be terminated and replaced by the attached one-year agreement in an amount not to exceed $100,000 per year with an option to extend the agreement for an additional year.

Section 2.08.070(b) of the Sunnyvale Municipal Code exempts professional services, including instructors, from the City’s competitive bidding requirement.

Although impossible to predict, it is anticipated that total payments to Skyhawks Sports Academy for its share of program revenue during the initial one-year contract term will not exceed $100,000. However, it should be noted that this program is anticipated to generate a net profit to the City of $68,599 for the current fiscal year.

It is recommended that Council award a one-year contract to Skyhawks Sports Academy, in an amount not to exceed $100,000 per year, in substantially the same format as the attached draft, and with an option to extend the contract for an additional one-year period, to provide youth sports classes and camps for the City’s Recreation Program.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Reviewed by:

Curtis Black
Interim Director, Parks and Recreation

Approved by:

Amy Chan
City Manager

Attachment
Draft Service Agreement (.pdf format)