CITY COUNCIL STAFF REPORT
Meeting: November 7, 2023
Subject
Approve a Fourth Amendment to the recreation agreement with Snapology of Los Gatos dba SV Kids Corp for Enrichment STEAM Programs.
Recommended Action
Authorize the City Manager to execute a Fourth Amendment to the recreation agreement with Snapology of Los Gatos dba SV Kids Corp (Snapology), increasing the amount by $190,105 for a total contract amount not to exceed $341,105 and extending the term of the agreement to August 31, 2026.
Reasons for Recommendation
Background
The City began offering enrichment science, technology, engineering, arts and mathematics (STEAM) programs through Snapology at the Portal Park Building in Fall 2020 through an agreement executed under the City Manager’s award authority.
The contract terms include a 60/40 split on revenue collected for in-person classes and camps with the contractor receiving 60% of the revenue and the City receiving 40% of the revenue. For online classes, which are only a very small portion of the overall program during the term of the contract, the compensation is a 70/30 revenue split. Snapology administers the program including hiring and training instructors and providing all class and camp materials. The City provides the facility, registration, and a listing in the recreation class schedule. Offering specialty recreation classes and programs through negotiated contracts such as these are an industry standard and occur commonly in surrounding cities such as Campbell, Sunnyvale, Santa Clara, and Mountain View.
Snapology began building and establishing a reputation for this youth age program and participation has steadily and consistently increased. With the success and growth of the program three amendments have been executed under the City Manager’s award authority to increase the total contract amount and extend the term of the agreement. As with all classes and programs offered through the Parks and Recreation Department, an increase in registration reflects greater community interest in the offerings and results in increased revenue for the City. The contract amendment requested will exceed the City Manager’s purchasing authority under Cupertino Municipal Code section 3.22.060(A) and the City’s Purchasing Policy. Increasing this contract will allow the Snapology classes and programs to continue to be offered through August 2026 and continue to produce revenue for the City.
Sustainability Impact
No sustainability impacts.
Fiscal Impact
The City currently has an agreement with Snapology to provide youth STEAM programs and the classes and camps at Portal Park. The programs are run through G/L account 580-62-613 Youth and Teen Recreation.
The extended term of the contract will cover programmatic costs and estimates through August 31, 2026 Fiscal Year
Total Revenue
Total Contractor Payments
City Net Revenue
2021 Actuals
$7,940
$4,764
$3,176
2022 Actuals
$89,745
$53,847
$35,898
2023 Actuals
$76,772
$46,063
$30,709
2024 Projected
$88,287
$52,972
$35,315
2025 Projected
$101,531
$60,918
$40,613
2026 Projected
$116,760
$70,056
$46,704
2027 Projected (July/Aug)
$87,475
$52,485
$34,990
Totals
$568,510
$341,105
$227,405
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 – Snapology Agreement, First, Second, and Third Amendments B – Draft Fourth Amendment