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ITEM 5 |
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City Council Memorandum Community Services Memo No. N/A
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| Date: |
November 9, 2023 |
| To: |
Mayor and Council |
| Thru: |
Joshua H. Wright, City Manager
Dawn Lang, Deputy City Manager - CFO
John Sefton, Community Services Director |
| From: |
Joshua Adams, Business Systems Support Analyst |
| Subject: |
Agreement No. 4561, with Active Network, LLC, for Recreation Registration System |
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| Proposed Motion: |
| Move City Council approve Agreement No. 4561, with Active Network, LLC, for the recreation registration system for the period of three years, in an amount not to exceed $175,000 in year one, beginning November 1, 2023, through October 31, 2026 |
| Background/Discussion: |
Since November 2014, the Recreation Division has utilized ActiveNet as its main business system solution to process transactions and provide reporting, meeting the city and customer needs. This software service is the primary tool used to facilitate customer engagement with recreation activity registration, parks and recreation facility reservations, and all related transactional accounting. In FY22/23 ActiveNet processed over 330,000 customer transactions for the Parks and Recreation divisions.
The initial agreement between ActiveNet and the City of Chandler was for a term of five years with five subsequent one-year automatic renewals. ActiveNet is a hosted, software-as-a-service (SaaS) solution.
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| Evaluation: |
On September 12, 2013, City Council approved an agreement with Active Network, LLC, for the recreation registration and reservation system. Active Network provides functional use of the software, all technical support, and product maintenance and development/upgrades for the system. Support and maintenance services are only available through Active Network. Over the tenure of ActiveNet use in Chandler, the functionality, service support, and operational improvements have continued to meet the technical, service, and operational needs of the Community Services Department. Staff recommends the award of this agreement to Active Network, LLC, for an initial term of a three years with a single two-year renewal option (for a total term not to exceed five years).
A significant change with this updated agreement is the consolidation of the Credit Card Processing services. Previously, this service was performed by a third-party (Chase PaymenTech). Under the new terms, an Active Network affiliate (Heartland) will assume this function. This change will provide a single point-of-contact for staff, and Active Network assumes responsibility to resolve credit card transaction and related issues. |
| Financial Implications: |
The SaaS purchase price is set by a determined percentage of the transaction fees that a customer pays. The Active Network Schedule (attached) details this fee structure. In a three-year review, the costs per transaction for the SaaS plus the payment processing fees were approximately $.50 per transaction on average. Historically, payment industry transaction fees have increased nominally per year. For this contract, depending on the customer’s payment choice, transaction fees may range from 2% up to 5% of the Council-approved and published Recreation/Reservation fee.
This contract projects continued future cost increases. The Community Services Pricing Policy includes these fees within the cost recovery model, and the customer does not pay an additional amount for credit card processing or convenience fees. Capacity to afford this expense is monitored monthly and increased needs will be managed through the annual budget process. |
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