7.B.
City Council Draft Agenda
- Meeting Date:
- 06/16/2026
- From:
- Rebecca Sayers, Parks, Recreation, Open Space, and Events Director
TITLE:
Consideration and Approval of Contract: Amendment One to Cooperative Purchase Contract 2025-155 with Kaizen Laboratories, Inc. for a Point-of-Sale and Reservation Management System.
STAFF RECOMMENDED ACTION:
- Approve the contract amendment to change the payment model from 5% per transaction, to a Software as a Service (SaaS) model at a cost of $70,000 annually for the initial three-year term of the contract, ending June 30, 2029
- Authorize the City Manager to execute the necessary documents
Executive Summary:
The City entered into a cooperative purchase contract with Kaizen Laboratories, Inc in November 2025 to implement point-of-sale and reservation management software for the Parks, Recreation, Open Space, and Events (PROSE) Division. The initial payment terms were based on 5% of anticipated annual revenue, not to exceed $90,000. Implementation of the software is fully underway, with ramada reservations beginning in April 2026, recreation centers in May 2026, and athletics registrations in May 2026. Kaizen has requested a change in payment terms from a percent of revenue model to a Subscription as a Service (SaaS) model, with an annual cost of $70,000, with no cost increases during the initial contract term of three years. Kaizen will invoice the city the full annual amount in July 2026 with a 30-day payment term.
The initial contract term would have ended in November 2028, but Kaizen has agreed to extend the initial term to align with the updated payment terms. The new contract ending date will be June 30, 2029, with an option for three additional one-year terms. Kaizen has agreed to keep the annual payment at $70,000 for the initial three-year term. The contract allows for negotiated increases afterward.
The initial contract term would have ended in November 2028, but Kaizen has agreed to extend the initial term to align with the updated payment terms. The new contract ending date will be June 30, 2029, with an option for three additional one-year terms. Kaizen has agreed to keep the annual payment at $70,000 for the initial three-year term. The contract allows for negotiated increases afterward.
Financial Impact:
Project Name: Point-of-sale and Reservation Management System by Kaizen Laboratories, Inc.
Cost: $70,000.00
Account Number Budgeted: 001-11-156-0580-5-4290 ($53,250) and 055-11-158-3067-5-4433 ($16,750)
FY2026-27 Budgeted Amount: $90,000
Grant Funded: No
Funding Source: General fund and BBB Recreation
Cost: $70,000.00
Account Number Budgeted: 001-11-156-0580-5-4290 ($53,250) and 055-11-158-3067-5-4433 ($16,750)
FY2026-27 Budgeted Amount: $90,000
Grant Funded: No
Funding Source: General fund and BBB Recreation
Policy Impact:
Only the payment model and contract period are being changed with this amendment. The updated cost is a savings of $20,000 to the city. Note that should PROSE user fees and rates be considered for adjustment in the future, the annual cost of the software subscription should be considered to be recovered with those revenues.
Previous Council Decision or Community Discussion:
Council approved the original cooperative purchase contract on November 4, 2025.
Options and Alternatives to Recommended Action:
- Approve the contract amendment as recommended
- Not approve the amendment and provide direction to staff
Connection to PBB Priorities and Objectives:
High performing governance.
Connection to Regional Plan:
There is no connection to the Regional Plan.
Connection to Carbon Neutrality Plan:
There is no connection to the Carbon Neutrality Plan.
Connection to 10-Year Housing Plan:
There is no connection to the 10-year Housing Plan.
Connection to Division Specific Plan:
There is no connection to a Division Specific Plan.