TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Mark Leyman, Parks and Recreation Director
Linda Robb, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 2 to the Software-as-a-Service Agreement with Kaizen Laboratories, Inc. in the Amount of $36,000 for an Updated Not-to-Exceed Amount of $106,000 for a Three-Year Term (Budgeted) (Parks and Recreation Director Leyman)
ADOPT RESOLUTION NO. 26-0098
Body
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RECOMMENDATION:
Staff recommends that the City Council:
a) Approve Resolution No. 26-0098 for Amendment No. 2 to the Software as a Service Agreement with Kaizen Laboratories, Inc. in the amount of $36,000 for an updated not-to-exceed amount of $106,000 and extend the contract by one year, for a three-year term; and
b) Authorize the City Manager to approve and execute the amendment with Kaizen Laboratories, Inc.
FISCAL IMPLICATIONS:
Sufficient funding for this Amendment No. 2 is currently available in the Parks and Recreation Department’s budget within the Facility and Parks Reservation Program.
BACKGROUND:
On August 19, 2024, the City entered into a one-year agreement with Kaizen Laboratories, Inc. to create a custom solution for court reservations. Kaizen collected 5% of revenue processed through their software platform, not to exceed $20,000. The Department and customers have been using the court reservation system successfully since April 2025.
On July 29, 2025, the City entered into Amendment No. 1 to increase the maximum compensation to $70,000, extend the term by one year, modify the scope of services, and revise the fee schedule to a flat fee of $50,000 for the one-year term.
As a best practice, the Department is in the process of evaluating an RFP for comprehensive registration services. The new system will include court reservations. Once the vendor is chosen, there will be an implementation period, and the Department will need the Kaizen services until either the new system is implemented or, if Kaizen is the chosen vendor, a new agreement is established.
DISCUSSION:
To avoid disrupting service for our racket sport customers, it is essential to keep the Kaizen reservation system in place throughout the implementation of the comprehensive registration system. If Kaizen is chosen as the new registration system vendor, the new agreement will supersede this amendment.
Staff recommends that the City Council: a) approve Resolution No. 26-0098 for Amendment No. 2 to the Software as a Service Agreement with Kaizen Laboratories, Inc., in the amount of $36,000 for an updated not-to-exceed amount of $106,000 and extend the contract term by one year for a total of three years; and b) authorize the City Manager to approve and execute the amendment with Kaizen Laboratories, Inc.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 26-0098
2. Amendment No. 2 - Kaizen Laboratories, Inc.