Agenda Report
TO:
July 11, 2022
Honorable Mayor and City Council
FROM: Parks, Recreation and Community Services
SUBJECT: CONTRACT AWARD TO iTENNIS, LLC and MOVE YOUR FEET TO
OPERATE THE CITY'S TENNIS PROGRAM
RECOMMENDATION:
It is recommended that the City Council:
1. Find that the proposed action is not a "project" subject to the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines Section 15061(b)(3) and, as such, _no environmental review is required; and
2. Authorize the Interim City Manager to enter into a contract, based on a competitive selection process pursuant to Pasadena Municipal Code Section 4.08.047, with iTennis, LLC and Move Your Feet to operate the City's tennis program for three years with two optional one-year extension periods subject to the approval of the City Manager.
BACKGROUND:
The City of Pasadena Parks, Recreation and Community Services Department (PRCS) offers the Pasadena community a quality tennis program which includes lessons, group clinics, camps, tournaments and leagues. The program operates up to seven days a week, year-round (except on holidays) for participants ages five and up. Due to the specialized skills required to provide these services, PRCS has contracted with an outside vendor with the experience and qualifications to provide a professionally managed tennis program at affordable prices.
On December 2, 2021, PRCS posted the Citywide Tennis Program bid opportunity on PlanetBids. Proposals were due January 7, 2022. Notices were sent to 15 vendors and two proposals were received, both from local Pasadena vendors.
The scope of work included program parameters, contractor requirements, facilities available to use, pre-season marketing and preparation requirements, City responsibilities, inclement weather protocols, and storage availability. Proposals were MEETING OF 07 /11/22 AGENDA ITEM NO. 13
Contract Award - City Tennis Program
July 11 ,' 2022
evaluated based on overall program proposal, experience, and budget. Additional preference points were awarded to local and small or micro-businesses.
A review panel of three City staff and one external industry professional independently scored the proposals in accordance with the stated evaluation criteria . The scores of each member of the review panel were calculated individually and then combined which produced an overall score for each proposer. Results of the evaluation can be found in Attachment A.
The City has offered a public tennis program on City courts for over 25 years utilizing a single vendor to provide the instruction. For the past 20 years iTennis has been that sole vendor . In recent years, PRCS staff have received complaints from individual tennis professionals wanting to teach on our courts. They expressed an "unfairness" to the exclusive contract. However, given that we award exclusive rights for teaching this was not allowed. Since this current vendor solicitation only yielded two qualified responses - iTennis and Move Your Feet, PRCS staff recommends both vendors be given the opportunity to operate the City's tennis program. The Department feels this arrangement will yield benefits as it offers the tennis community a choice in vendors which could attract new, different and diverse participants.
The PRCS Department has taken care to balance the need for tennis courts to be open and available to the public for drop in play versus the need and desire for a structured tennis program. Pasadena has a total of 14 tennis courts at six parks (Brenner - 1, Brookside - 5, Eaton Blanche - 2, Hamilton - 2, Grant - 2 and Washington - 2). Under the terms of. these contracts, half of the courts will always be available for drop in play and the half will be utilized by the tennis vendors as follows. # of Tennis
Vendor Park Courts
iTennis Brookside 3
Grant . 1
Total# Courts 4
Move Your Feet Eaton Blanche 1
Hamilton 1
Washington 1
Total# Courts 3
In addition, under the joint use agreement with PUSD, additional tennis courts are available during non-school hours at Pasadena and John Muir High Schools.
Contract Valuations
As part of the contract negotiation process, each vendor was required to estimate the amount of gross revenue they will generate as a result of operating their share of the City's tennis program. Each vendor will offer tennis lessons (both private and Contract Award - City Tennis Program
July 11, 2022
group/clinic style), leagues and camps. Additionally, iTennis will offer youth and adult tennis tournaments. All tournaments must be sanctioned by the United States Tennis Association (USTA). The USTA permits one organization in the area to conduct USTA tournaments and iTennis holds that authorization . The tennis fees each vendor charges must align with those approved in the City's adopted General Fee Schedule.
Based on their staff size, courts available, estimated number of clients, proposed fees and number and types of classes, each vendor estimated the amount of gross revenue they will generate. iTennis estimates they will generate $407,500 per year and Move Your Feet estimates $126,220 per year (please see Attachment B for further details on how the vendors calculated these amounts). The three year value of these contracts is:
iTennis - $1,222,500 and Move Your Feet - $378,660.
Per the City's General Fee Schedule, contract sports programs ' revenue sharing agreements can be negotiated. Most recently the iTennis agreement shared revenue generated at three parks (Eaton Blanche, Grant, and Hamilton) on a 70%/30% revenue sharing basis and a flat amount of $60,000 for the Brookside Park courts. This generated $89,721 in FY 18 and $69,322 in FY 19, the last full pre-COVID years of operation .
Staff has negotiated a simple 70%/30% revenue sharing agreement with both contractors. Based on the contract valuations reported above, the below amounts of revenue are anticipated to be generated and remitted to the City.
One Year Three Year Total
Amount Amo-unt
Est. Gross Remitted to Est. Gross Remitted to
Vendor Revenue City (30%) Revenue City (30%)
iTennis $407,500 $122,250 $1,222,500 $366,750
Move Your Feet $126,220 $37 ,866 $378 1660 $113 ,598
TOTAL $533,720 $160,116 $1 ,601,160 $480,348
COUNCIL POLICY CONSIDERATION:
Approval of this contract award supports the City Council's strategic planning goals to support and promote the quality of life and local economy and maintain fiscal responsib ility and stability.
ENVIRONMENTAL ANALYSIS:
The proposed contracts with iTennis, LLC and Move Your Feet for the City Tennis Program have been determined to be exempt from California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines Section 15061 (8)(3), the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment.
Contract Award - City Tennis Program
July 11, 2022
FISCAL IMPACT:
Awarding these contracts will result in estimated revenues in Recreation Contract Fees (budget account 10118050-666800-58025) in the amount of $160,116 per year or $480,348 over the three-year life of the contract.
Prepared by:
~~ L ardo Chavez
Superintendent, Parks, Recreation and
Community Services Department
Approved by:
Attachments:
Attachment A - RFP Evaluation Scores
Attachment B - Contract Values
Respectfully submitted,
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Director, P ,
Community .Services t