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ITEM: AUTHORIZATION TO CONTINUE UTILIZING REVENUE GENERATING CONTRACTS FOR CHEER AND DANCE, SWIMMING, TUMBLE TOTS, TAEKWONDO AND WELLINGTON SOCCER
REQUEST: Authorization to continue utilizing revenue generating contracts with Wellington Cheer and Dance, Wellington Swimming, Muriel D. Williams (Tumble Tots), Caulett CMMA, Inc. (Taekwondo), and Wellington Soccer.
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EXPLANATION: The Village’s Purchasing Manual includes a provision whereby any contract that generates revenue in excess of $25,000, requires Council approval (Chapter 3, Special Exemption, Item 3).
The following vendors are currently contracted and providing services that generate revenue to the Village above the $25,000 threshold amount:
|
Provider |
Est. FY 2016 Total Annual Registrations Collected by the Village |
Est. FY 2016 Annual Revenues Retained by the Village (30%) |
Est. FY 2016 Annual Expenses Paid to the Provider by the Village (70%) |
|
Wellington Cheer and Dance |
$105,393 |
$31,618 |
$73,775 |
|
Wellington Swimming |
$173,550 |
$52,065 |
$121,485 |
|
Muriel D. Williams (Tumble Tots) |
$44,371 |
$13,311 |
$31,060 |
|
Caulett CMMA, Inc. (Taekwondo) |
$46,850 |
$14,055 |
$32,795 |
|
Wellington Soccer |
$57,941 |
$17,382 |
$40,559 |
In all of these contracts, the Village collects all registration fees and pays the provider 70% and retains 30%. In addition, as is the case with all athletic programs, all facility costs are borne by the Village.
While Muriel D. William’s, Caulett CMMA Inc. and Wellington Soccer’s contracts do not generate revenues in excess of $25,000, annual payments made by the Village (approx. $31,060, $32,795 and $40,559, respectively) exceed the purchase threshold amount ($25,000) and require Council approval.
All vendors continue to provide successful programs to the Village and no firms have contacted the Village with interest in establishing and managing similar programs.
Staff recommends continued utilization of revenue generating contracts with Wellington Cheer and Dance, Wellington Swimming, Muriel D. Williams and Caulett CMMA, Inc., and Wellington Soccer for an additional three years effective October 1, 2016 through September 30, 2019.
Pursuant to the Village Purchasing Manual, all services listed above are exempt from bid requirements; however, Council approval is required.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: These contracts generate revenue as described above. The related expenditures and revenues are included as part of the annual budget process.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Authorization to continue utilizing revenue generating contracts with Wellington Cheer and Dance, Wellington Swimming, Muriel D. Williams (Tumble Tots), Caulett CMMA, Inc. (Taekwondo), and Wellington Soccer.