Item Coversheet
  CITY COUNCIL AGENDA MEMO
MEETING DATE: 7/24/2023
DEPARTMENT:Parks
DIRECTOR:Ron Smith, Director of Parks and Recreation
AGENDA ITEM:To approve the purchase of a Hosted Recreation Management System
RECOMMENDED ACTION:Approval of Expenditure

ITEM SUMMARY

To approve an expenditure for a Hosted Recreation Management System for an initial term of three (3) years with three (3) one-year automatic renewals in the estimated annual amount of $367,556 from Active Network, LLC for the Parks and Recreation Department; and authorizing the City Manager to execute all necessary documents. Approved

BACKGROUND

The Parks and Recreation Department currently utilizes ACTIVE Network, LLC’s Active Net as its recreation management system. It is the recommendation of the department to continue utilizing Active Net and enter into a new contract with ACTIVE Network, LLC for a term of three (3) years with options to renew for three (3) automatic one-year periods.

 

Active Net, is an industry leading recreation management system which provides the department with service modules for program registration, membership pass validation, on-line registration, facility booking, point of sale, payment processing, league maintenance, reporting, and accounting processes in a completely hosted web environment. Active Net meets PCI Level 1-Compliant standard, offering residents a high level of payment information security.

 

Active Net has been utilized since November 2017 and provides satisfactory services administratively and to the public. Active Net contains over 232,000 customer accounts in the system and allows staff to manage nearly 7,000 classes, 18,000 facility room and field rentals, 5,000 point of sale items and 160 sports leagues on an annual basis.

 

Active Net is a per-transaction based solution. There are no concurrent or per-seat licensing fees so the department has the capability of expanding services without incurring the cost of additional licenses. Active Network, LLC’s fee structure will remain neutral. Approximate Active Net annual fees would be $367,556 based on Fiscal Year ’20-’21 total transaction fees. This figure includes software, credit card processing, credit card security, and support. Three-year average Active Net fees were $274,469. This purchase is funded by the Recreation Revolving Fund with transaction fees incorporated into the price of classes, rentals, leagues and concessions.

 

The department is invested in both the software and hardware associated with Active Net. The fiscal and non-fiscal costs of migrating to another recreation management system would provide little if any additional benefit to the City, the department, or the public. Continuing with Active Net is a cost responsible approach. Failure to approve the new Active Net contract would result in the loss of the department’s ability to provide the above mentioned services to the public.

 

The City is exempt from the competitive bid process for this purchase as allowed by Texas Local Government Code Chapter 252 Subchapter B Section 252.022(a)7)(A). (City of Plano Internal Contract No. 2023-0236-XR)

FINANCIAL SUMMARY/STRATEGIC GOALS

Funding for this item is included in the FY 2022-23 Recreation Revolving Fund and is planned for future years, as well.  Terms of the agreement between the City of Plano and Active Network, LLC includes an initial term of three (3) years with options to renew for three (3) automatic one-year periods, for a total estimated amount of $2,205,336, if all renewals are exercised.

 

Approval of this item supports the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government.