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ITEM: AUTHORIZATION TO CONTINUE UTILIZING PARKS AND RECREATION REVENUE GENERATING CONTRACTS
REQUEST: Authorization to continue utilizing multiple Parks and Recreation revenue generating contracts.
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EXPLANATION: The Village’s Purchasing Manual includes a provision whereby any contract that generates revenue in excess of $25,000 annually, requires Council approval (Chapter 3, Special Exemption, Item 3).
1. The following providers are currently contracted and providing services that generate 100% in revenue to the Village, above the $25,000 annual threshold amount:
|
Provider |
FY 2017 Revenue Generated |
FY 2018 Projected Revenue |
|
Food Truck Invasion |
$67,524.00 |
$47,000.00 |
|
Gourmet Food Truck Expo |
N/A |
$30,000.00 |
|
Cavalry Church |
$32,730.00 |
$32,730.00 |
In fiscal year 2017, Food Truck Invasion was the only contracted provider, and generated revenue to the Village of $67,524. Projected revenue in fiscal year 2018 is $47,000.
On January 1, 2018, the Village began utilizing a second provider, Gourmet Food Truck Expo. There are no reported revenues in fiscal year 2017; however, projected revenue for fiscal year 2018 is approximately $30,000. Under these agreements, the Village retains 100% of the revenue.
2. The Village has an existing independent contractor agreement with NRG Studios, LLC to provide dance lessons to children ages two (2) through eighteen (18). The Village collects 100% of the registration fees, and pays NRG Studios, LLC, 70% and retains 30% as summarized below:
|
Provider |
FY 2017 Total Annual Registrations Collected by the Village |
FY 2017 Annual Amount Paid to the Provider by the Village (70%) |
FY 2017 Annual Revenues Retained by the Village (30%) |
|
NRG Studios, LLC |
$33,361.00 |
$23,352.00 |
$10,009.00 |
In fiscal year 2017, the Village collected $33,361 in registration fees, paid NRG Studios, LLC $23,352 (70%) and retained $10,009 (30%). Projected total registration fees in fiscal year 2018 are $40,000, with the Village paying NRG Studios, LLC $28,000 (70%) and retaining approximately $12,000 (30%).
Staff recommends continued utilization of revenue generating contracts with Food Truck Invasion, Gourmet Food Truck Expo, Cavalry Church and NRG Studios, LLC for an additional three years from date of award.
Pursuant to the Village’s 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. The related expenditures and revenues are included as part of the annual budget process.
WELLINGTON FUNDAMENTAL: Responsive government
RECOMMENDATION: Authorization to continue utilizing multiple Parks and Recreation revenue generating contracts.