April 26, 2005

SUBJECT: Award of Contract to Provide Youth Soccer Classes and Camps for the City’s Recreation Program (F0404-55)

Approval is requested for the award of a one-year contract to Kidz Love Soccer, Inc., of Cupertino, with an option to extend the contract for an additional one-year period, to provide youth soccer classes and camps for the City’s Recreation Program.

For many years, the City has offered youth soccer classes and camps to the public through its Recreation Program. As is typical with Recreation Program activities, the City contracted with a private firm to provide the services; and revenue generated was shared between the City and the contractor.

The City has contracted with Kidz Love Soccer for the past several years to provide youth soccer classes and camps under the City Manager’s contract award authority of $50,000. Kidz Love Soccer was selected, based upon its success running recreational soccer programs for many other cities. The firm is very well known all over the San Francisco Bay Area, and its instructors are exceptionally skilled and well trained. 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 soccer camps—both because of the quality of the program provided by Kidz Love Soccer as well as an increase in soccer’s popularity in recent years. During 2005, approximately 1800 children participated in classes and approximately 150 participated in camps provided for the City by Kidz Love Soccer.

The company is paid 70% of the resident registration fees collected for soccer classes and camps minus any refunds. The remaining 30% 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 Kidz Love Soccer 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 $120,000 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 Kidz Love Soccer, Inc., for its share of program revenue during the initial one-year contract term will not exceed $120,000. It should be noted that the City’s Youth Sports program is anticipated to generate a net profit to the City of $68,000 for the current fiscal year.

It is recommended that Council award a one-year contract to Kidz Love Soccer, Inc., in an amount not to exceed $120,000 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 soccer 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)