SUBJECT:       Award of Contract to Provide Music Appreciation Classes for Families through the City’s Recreation Program (F0404-61)

REPORT IN BRIEF

Approval is requested for the award of a one-year contract to Music for Families, Inc., of Sunnyvale, with an option to extend the contract for an additional one-year period, to provide music appreciation classes for children and their parents through the City’s Recreation Program.

BACKGROUND

Since 2001, the City has contracted with Music for Families, formerly known as Music Together of Mid-Peninsula, to teach family music appreciation classes.  The classes are very popular and are among the first to fill each session.  An additional section of the class was added in Fall 2004.  Given the continued high demand and long waiting lists to enroll, it is likely additional sections will be added in the future.

Music for Families was selected, based on its success conducting similar classes for the City of Palo Alto at two park locations, the Town of Atherton and at four church locations in Mountain View, Menlo Park, Los Altos and Palo Alto.

The current contract began on January 3, 2005.

DISCUSSION

During the past year, more than 600 students have participated in classes provided for the City by Music for Families.

The company is paid 70% of the resident rate for all class participants.  The remaining 30% is retained by the City to offset the cost of handling class registrations.  This retention rate is comparable to that of other large recreation contract providers.  Although the City does incur costs in supporting the classes provided by Music for Families, the firm’s popularity and its own extensive marketing efforts help to keep this class the City’s single most profitable youth performing arts class.

The current contract term will not end until December 31, 2005; and it is anticipated at this time that total payments to Music for Families under the existing contract will exceed 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 $65,000 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.

FISCAL IMPACT

This agreement involves funds generated from recreation program participation fees with no impact on the General Fund.  It is anticipated that the total payment to Music for Families, Inc., for its 70% share of program revenue will not exceed $65,000 per year.  Should the annual limit of $65,000 be paid to the contractor, the City will net nearly $28,000 for its 30% share of the participant fees.

RECOMMENDATION

It is recommended that Council award a one-year contract to Music for Families, Inc., in an amount not to exceed $65,000 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 music appreciation classes for children and their parents through 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

A.  Draft Service Agreement (.pdf)