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ITEM: AUTHORIZATION TO CONTINUE UTILIZING REVENUE GENERATING CONTRACTS FOR NRG STUDIOS, WELLINGTON CHEER AND DANCE, SWIMMING, TUMBLE TOTS, FOOD TRUCK INVASION, GOURMET FOOD TRUCK EXPO AND CALVARY CHURCH
REQUEST: Authorization to continue utilizing revenue generating contracts with NRG Studios, Wellington Cheer and Dance, Wellington Swimming, Muriel D. Williams (Tumble Tots), Food Truck Invasion, Gourmet Food Truck Expo and Calvary Church.
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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 2019 Total Annual Registrations Collected by the Village |
Est. FY2019 Annual Revenue Retained by the Village at 30% |
Est. FY 2019 Annual Expenses Paid to the Provider by the Village at 70% |
|
NRG Studios, LLC |
$43,506. |
$13,052. |
$30,454. |
|
Wellington Cheer and Dance |
$80,477. |
$24,143. |
$56,334. |
|
Wellington Swimming |
$104,454. |
$31,336. |
$73,118. |
|
Muriel D. Williams (Tumble Tots) |
$39,452. |
$11,836. |
$27,616. |
In all of the above 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.
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 2018 Revenue Generated |
FY 2019 Projected Revenue |
|
Food Truck Invasion |
$49,140. |
$45,770. |
|
Gourmet Food Truck Expo |
$29,850. |
$44,620. |
|
Calvary Church |
$32,730. |
$32,730. |
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 NRG Studios, LLC, Wellington Cheer and Dance, Wellington Swimming and Muriel D. Williams, for an additional three (3) years effective October 1, 2019 through September 30, 2022.
In addition, staff recommends exercising the first of two (2) one-year renewal options with Food Truck Invasion, Gourmet Food Truck Expo and Calvary Church effective July 1, 2019 through June 30, 2020.
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 NRG Studios, Wellington Cheer and Dance, Swimming, Muriel D. Williams (Tumble Tots), Food Truck Invasion, Gourmet Food Truck Expo and Calvary Church.