Consideration and Approval of Contract: Cooperative Purchase Contract with Kaizen Laboratories Inc for a Point-of-Sale and Reservation Management System in an amount not to exceed $90,000 annually.
 

1. Approve the cooperative purchase contract with Kaizen Laboratories Inc. and execute a contract in an amount not to exceed $90,000 annually
2. Authorize the City Manager to execute the necessary documents

The City of Flagstaff has used recreation management software since 2008. The software manages all manner of transactions and reservations for the Parks, Recreation, Open Space, and Events (PROSE) Division, from memberships and point-of-sale for all recreation facilities, to indoor and outdoor amenity reservations, special event permit reservations and invoicing, youth and adult sports reservations and invoicing, and registration for city sports leagues, tournaments, and programming such as swim lessons. The current software no longer meets the Division's needs and expectations for customer service, cybersecurity, and reliability. In researching other available platforms over the past several years, the PROSE team identified the point-of-sale and reservation management system offered by Kaizen Laboratories as ideal for the Division's needs and our community. Kaizen was recently awarded the contract to update Pima County's Parks and Recreation reservation system, which was written with cooperative language to allow other Arizona locations to utilize their procurement process and contract. 

Kaizen's fee is based on 5% of PROSE's estimated annual revenue of $1,800,000, plus applicable sales taxes. If the estimated annual revenue exceeds $1,800,000, the parties will increase the not-to-exceed amount. Additionally, electronic payment processing fees will be charged and collected by the Contractor for online payments. Should PROSE user fees and rates be considered for adjustment in the future, the Kaizen 5% fee could be considered as part of that discussion. Kaizen's funding model with other agencies is that they collect the 5% fee at the time of transaction directly from the customer. This model could be included in any future rate adjustment conversations. 
 
 

Project Name: Point-of-Sale and Reservation Management System by Kaizen Laboratories Inc.
Cost: Not to exceed $90,000 annually, based on five percent of estimated annual revenue of $1,800,000, plus applicable sales taxes 
Account Number Budgeted: 001-11-156-0580-5-4231 with $8,750; 001-11-156-0580-5-4290 with $39,000; 001-11-156-0580-5-4301 with $5,500; and 055-11-158-3067-5-4433 with $36,750. 
FY2025-26 Budgeted Amount: Knowing that the new system will not "go live" until the second half of the fiscal year, the FY2025-26 budgeted amount is anticipated to be funded with approximately $25,000 from BBB Recreation. 
Grant Funded: No
Funding Source: General Fund and BBB Recreation

There have been no previous council decisions.

1. Approve the contract as recommended
2. Not approve the contract and provide direction to staff 

Flagstaff currently uses Vermont Systems Incorporated's (VSI) recreation management software called RecTrac and their online registration platform called WebTrac. Kaizen’s system offers numerous advantages compared to the current VSI platform, including the following:

• Modern Functionality: A user-friendly interface with support for mobile devices and digital wallet-based memberships.
• Security and Compliance: Native HIPAA compliance meets requirements that ensure the security and privacy of users with secure data management,  including electronic waivers and electronic signatures on contracts.
• Enhanced Communication: Automatic notifications and language translation capabilities.
• New Functionality: Special event permits, sports league management, facility reservation management, and ticketing modules that are integrated into the platform.
• Proven Performance: With 24-hour customer support and testimonials from other municipalities, including Pima County, Arizona, and Castle Pines, Colorado, Kaizen is proven to handle more than 10,000 concurrent users without degradation in service.

The Procurement Section identified a cooperative purchase agency contract with Pima County to utilize the purchase of a Point of Sale and Reservation Management System. Pima County conducted a competitive and open procurement process through Request for Proposal Solicitation No.# RFP-PO-2400008 that resulted in Contract #MA-PO-24-162, with Contractor Procurement staff that determined the procurement was a fair and competitive process, and that the resulting cooperative purchase contract is applicable to this project. 

This Cooperative Purchase Contract shall commence upon execution by the parties and shall continue for a period of three (3) years (“Initial Term”) with an option for three (3) additional one (1) year extensions presuming that the underlying Agency Contract has not expired or been terminated, or the Contractor has agreed to continue to provide to the City the materials and/or services in the Scope of Work pursuant to the same terms in the Agency Contract. The contract may be extended by mutual written consent of both parties.

High Performing Governance:

• Serve the public by providing high quality customer service. 
• Implement and communicate innovative and efficient local government programs, new ideas, and best practices.

Safe and Healthy Community:

• Promote physical and mental well-being through providing recreational opportunities, parks, open space, and active transportation options.

Livable Community:

• Provide amenities and activities that support a healthy lifestyle

There is no connection to the Regional Plan.

There is no connection to the Carbon Neutrality Plan.

There is no connection to the 10-year Housing Plan.

There is no connection to a Division Specific Plan.