HomeMy WebLinkAbout2024-11-12 - AGENDA REPORTS - RECREATION MGMT SYSTEM CONTRO
Agenda Item: 5
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: A
2UJ'
DATE: November 12, 2024
SUBJECT: RECREATION MANAGEMENT SYSTEM REPLACEMENT
CONTRACT
DEPARTMENT: Administrative Services
PRESENTER: Ryan Drake
RECOMMENDED ACTION
City Council:
1. Award a five-year contract to Kaizen Labs for the replacement of the City of Santa Clarita's
Recreation Software Management System for a total amount not to exceed $1,360,000.
2. Appropriate funding in the amount of $160,000 from the Technology Replacement Fund
(Fund 720) to Expenditure Account 7202203-516101 for Fiscal Year 2025-26.
3. Authorize an ongoing annual appropriation from the General Fund balance (Fund 100) to
Technology Services Expenditure Account 1002200-516101 for annual support, hosting, and
maintenance beginning in Fiscal Year 2026-27 for $169,150, Fiscal Year 2027-28 for
$75,000, Fiscal Year 2028-29 for $50,000, and Fiscal Year 2029-30 for $35,000, contingent
upon the appropriation of funds in the annual budget for such fiscal years.
4. Authorize an ongoing annual appropriation from the General Fund balance (Fund 100) to
Finance Expenditure Account 1002102-516132 for credit card processing fees beginning in
Fiscal Year 2025-26 for $54,000, with an annual increase of three percent through Fiscal
Year 2029-30 based on increased estimated revenue projections.
5. Authorize the City Manager or designee to modify the award over the course of the contract
term with Kaizen Labs based on revenue actuals.
6. Authorize the City Manager or designee to execute all contracts and associated documents
and approve future upgrades at no additional cost, subject to City Attorney approval.
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BACKGROUND
High quality recreation is among the cornerstone benefits and experiences for living in the City
of Santa Clarita (City). From a multitude of team sports to individual enrichment programs, the
City's recreation offerings are highly popular with residents of all ages. Based on a three-year
average, the City's recreation management system (RMS) processes more than 87,000
transactions generating approximately $5 million in revenue each year. Currently, 21,725
registered users who learn about the City's various recreation programs in the award -winning
Seasons magazine, use the RMS to register for classes, team sports, and more.
Since February 2013, the City has been using CivicRec as its RMS. While it was originally
selected for its affordability and functionality, CivicRec has not introduced significant
enhancements over the years and is no longer meeting the City's high standards for both staff
functionality and citizen serviceability. CivicRec lacks mobile compatibility, utilizes a
cumbersome user interface, and falls short of many desirable RMS features. Moreover, the
annual subscription cost of CivicRec is proposed to increase 37 percent starting in Fiscal Year
2025-26, plus the introduction of a two percent fee in subsequent years based on the amount of
recreation program revenue.
In light of the cost increase coupled with the current system's deficiencies, staff researched
multiple alternatives, seeking a more modern, user-friendly platform that can streamline
processes and provide improved services to residents. A total of three new RMS solutions were
researched, including ActiveNet, Amilia, and Kaizen Labs (Kaizen). Among them, Kaizen was
selected as the top solution, most notably for its comprehensive features, modern interface,
competitive cost, and seamless integration with existing systems such as the City's financial
system. While the transition to Kaizen will cost approximately $300,000 more than CivicRec
over five years, the included new features and capabilities described below offer a better value
proposition to the City and its residents.
Specifically, Kaizen's RMS offers numerous advantages compared to the current CivicRec
platform, including the following:
e Modern Functionality: A user-friendly interface with support for mobile devices and
digital wallet -based memberships.
e Security and Compliance: Native HIPAA compliance meeting requirements that
ensures the security and privacy of users with secure data management, including
electronic waivers and electronic signatures on contracts.
e Enhanced Communication: Automatic notifications and language translation
capabilities.
e New Functionality: Special event permits, sports league management, facility
reservation management, and ticketing modules that are integrated into the platform.
e Proven Performance: With 24-hour customer support and testimonials from other
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municipalities, including Pima County, Arizona, and Castle Pines, Colorado, Kaizen is
proven to handle more than 10,000 concurrent users without degradation in service.
The cost of Kaizen RMS shall be based on recreation program revenue over the next five years.
Therefore, staff is recommending to award a five-year contract to Kaizen for a new RMS, with a
total amount not to exceed $1,360,000. Using a sliding scale, Kaizen will receive 2.5 percent of
program revenue in year one (estimated at $160,000), 3 percent in year two ($210,000), 3.75
percent in year three ($285,000), and 4 percent in years four ($335,000) and five ($370,000).
This amount covers hosting, maintenance, enhancements, upgrades, support, and full use of the
system throughout the five-year term. There is no annual subscription fee or implementation fees
associated with the Kaizen platform.
On July 11, 1995, the City Council authorized the use of competitive and cooperative purchasing
agreements, allowing the City to benefit from existing contracts previously awarded through a
competitive bidding process. This approach enables the City to streamline procurement by
entering into a contract based on a competitively awarded contract from another public agency,
ensuring compliance with procurement regulations while saving time and resources.
In line with this, the City proposes to utilize cooperative purchasing language in the existing
contracts between Kaizen and Tulare County in California and Pima County in Arizona,
respectively, to negotiate the City's contract with Kaizen for a new RMS. Configuration of the
Kaizen RMS is slated to take seven to eight months and is forecasted to be operational in time
for fall 2025 recreation registration.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
Based on recreation program revenues over the past two years, the anticipated five-year contract
with Kaizen has a projected cost of $1,360,000. This includes a no -cost implementation that
includes system configuration, staff training, hardware/equipment, and customer support.
Upon approval of the recommended actions, the annual cost to support this contract will be
budgeted in expenditure account 7202203-516101 (Technology Replacement Fund) in the
amount of $160,000 for Fiscal Year 2025-26 and in remaining years, contingent upon the
appropriation of funds in the annual budget for such fiscal years, in expenditure account
1002200-516101 (General Fund) as follows: $210,000 for Fiscal Year 2026-27; $285,000 for
Fiscal Year 2027-28; $335,000 for Fiscal Year 2028-29; and $370,000 for Fiscal Year 2029-30.
The Finance Expenditure Account 1002102-516132 (General Fund) will be increased for credit
card processing fees beginning in Fiscal Year 2025-26 for $54,000, with an annual increase of
three percent through Fiscal Year 2029-30 based on increased estimated revenue projections.
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