CITY COUNCIL STAFF REPORT
Meeting: May 16, 2023
Subject
Consider an amendment to the recreation agreement between the City of Cupertino and Lisa Molaro, a sole proprietor/individual for ceramics and art instruction.
Recommended Action
Authorize the City Manager to execute the Third Amendment to the recreation agreement between the City of Cupertino and Lisa Molaro, a sole proprietor/individual increasing the amount by $336,941 for a total amount not to exceed $505,941 and extending the term of the agreement to end on August 30, 2025.
Reasons for Recommendation
Background
City of Cupertino has been offering city ceramics and art programs at the Wilson Park Building (Wilson). The building houses a kiln, several pottery wheels, and many specialty ceramics and art tools. Lisa Molaro is a contracted instructor with the City who provides the ceramics and art program at Wilson. Programs offered at Wilson include programs for youth, teens, and adults in the community. Camps offered include Wilson Park Art Camp and Wilson Park Teen Art Camp. Ceramics classes for youth include Create Together Clay Your Way, Art for Homeschoolers, Clay Handbuilding for Teens, and Teen Potters Wheel. Classes and programs for adults include Beginner, Beyond Beginner, and Intermediate Potter’s Wheel, Handbuilding for Adults, and Open Ceramics Studio. Other classes and programs offered include private ceramics lessons, private ceramics and art parties, and specialty ceramics workshops including topics like Ornament making, Mosaics, and Cricut machine work. The ceramics and art programs offered at Wilson positively impact the quality of life of the Cupertino community.
The City has awarded a three-year contract, under the City Manager’s authority, to Lisa Molaro, to provide the ceramics and arts programs. Programming with this contractor began in November 2016. The contractor began building the program and establishing a reputation for the ceramics, arts classes, and programs at Wilson until Covid closures occurred. Since the reopening of the building and classes in Summer of 2021, participation has steadily and consistently increased.
While there are local vendors that offer some programs with ceramics such as Color Me Mine or Petroglyph, these businesses do not allow the opportunity to create a ceramics piece from scratch. The pieces are premade pottery pieces that are available to paint and left to be fired by the company. Wilson provides classes and programs that allow participants to create truly unique pieces of art from inception to creation.
The contract terms are a 60/40 split on revenue collected for classes and camps with the contractor receiving 60% of the revenue and the City receiving 40% of the revenue. For ceramic parties and open studio which make up a small portion of the overall program, the term is a 70/30 split. The contractor administers the program including hiring and training any instructors and maintaining the specialized equipment. The City provides the facility, the equipment, registration, and a listing in the recreation class schedule.
Offering specialty recreation classes and programs through contracts such as these are an industry standard and occur commonly in surrounding cities such as Sunnyvale, Santa Clara, Mountain View, and San Jose.
The contractor has developed and fostered a reputation as an excellent teacher and administrator of the ceramics and arts program. Per contract, the contractor has hired, trained, and supervised staff and has set a high standard for the base of knowledge in ceramics and art techniques conveyed in the program. The contractor has built a personalized brand over several years of working with the community to provide structured, organized, and creative programs and classes which is supported with excellent customer service. The program has grown each year under the contractor’s direction, and the community has come to expect and rely on the consistent, high-quality instruction and personal attention given in the program. The reputation that has been built over the course of several years cannot be duplicated or replicated. This contract allows the City to tap into the highly specialized knowledge of a proven professional to serve the community with a quality arts and ceramics program.
This contract is a professional services contract; therefore, it is exempt from competitive bidding requirements under Cupertino Municiple Code (CMC) 3.22.070(D). The contractor is responsible for superior class quality and this reputation is crucial to retaining current participation and revenue levels. The contractor’s excellent administration of the program which includes specific knowledge of ceramic and art techniques along with the student commitment, and active community engagement has established a proven record of success that has been achieved through the longevity and continuity of the program.
The contract amendment requested will exceed the City Manager’s purchasing authority under CMC 3.22. Increasing this contract would allow these programs to continue to be offered through August 2025 and continue to produce revenue for the City that exceeds the amount paid to the instructor.
Sustainability Impact
No sustainability impacts.
Fiscal Impact
The City currently has an agreement with Lisa Molaro, sole proprietor/individual to administer the ceramics and art programs at Wilson. The ceramics and art program offered at Wilson Park Building is run through G/L account 580-62-613 Youth and Teen Recreation.
The current term of the contract is from April 29, 2021 to June 30, 2023. As a result of the ongoing success of the program, the total revenue for the current contract is projected to be $345,732 with a total contractor payment of $207,439, equaling $138,293 in City net revenue. Revenues are based on anticipated programming and regular enrollment trends through June 30, 2023.
The extended term of the contract will cover programmatic costs and estimates for FY 23-24 and FY 24-25. For FY 23-24, projected total revenue is $231,397, total contractor payment of $138,838, equaling $92,559 in City net revenue. For FY 24-25, projected total revenue is $266,106, total contractor payment of $159,664, equaling $106,442 in City net revenue.
Fiscal Year
Total Revenue
Total Contractor Payments
City Net Revenue
FY 16-17
$24,655
$14,793
$9,862
FY 17-18
$58,334
$35,000
$23,333
FY 18-19
$64,648
$35,000
$25,859
FY 19-20*
$55,497
$38,789
$22,199
FY 20-21*
$9,207
$5,524
$3,683
FY 21-22
$135,310
$81,186
$54,124
FY 22-23 Projected
$201,215
$120,729
$80,486
FY 23-24 Projected
$231,397
$138,838
$92,559
FY 24-25 Projected
$266,106
$159,664
$106,442
*Impacted by Covid Closure March 2020 to April 2021
California Environmental Quality Act
The proposed contract amendment is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15301 (operation of an existing facility). _____________________________________
Prepared by: Sonya Lee, Recreation Manager
Reviewed by: Rachelle Sander, Director of Parks and Recreation Approved for Submission by: Pamela Wu, City Manager
Attachments:
A – Draft Amendment