AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 2/6/2019
TO: Honorable Mayor and City Council Members
FROM: Library and Recreation Services Department
SUBJECT:
Title
City Council consideration of a Third Amendment to the City's contract with the Active Network (TAN).
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RECOMMENDED ACTION:
Recommended action
That the City Council authorize the City Manager, or his designee, to sign a Third Amendment with Active Network (TAN).
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ANALYSIS:
The Library and Recreation Services Department transitioned from its registration software program from "RecWare Safari" to "The Active Network" in May 2012. TAN offers recreation registration and facility reservation software, through its online portal, that is accessible by both City staff and residents. Use of the service is paid for by transaction fees. Staff-initiated transactions are paid at a lesser rate than those charged directly to online users.
When the service began, patrons paid fees as "a Service Charge equal to 4.5% + $.50 for all transactions $0-150, $150-$500 = 3.5% + $5.50 and $500+ = 2.5% + $10.50 with a minimum Service Charge of $2.00." This was a promotional rate with transaction fees scheduled to increase January 2013.
In October 2012, the original service agreement was amended to extend the promotional transaction fee rate until January 2014. Due to concerns related to TAN's performance, the City amended the agreement again in March 2014 to allow for a twelve-month termination notice in lieu of the original 36-month requirement. At that time, TAN allowed the City to maintain the existing promotional transaction fee rate.
In early 2016, TAN informed City staff that transaction fees would increase "equal to 6.5% + $1.00 for all transactions $0-$150, $150-$500 = 3.5% + $5.50, and $500+ = 2.5% + $10.50 with a minimum Service Charge of $2.00." The fee increase was presented to and approved by City Council on July 2016. Because of the uptick, a Kids Club parent who registers directly...
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