To: Aaron Rector, City Manager
From: Michael Beaver, The Keller Pointe Manager
Subject:
Title
Consider a resolution approving the contract with American Defensive Arts Academy of Keller, Texas, in an amount not to exceed $70,000.00, and authorizing the City Manager to execute all related purchase documents on behalf of the City of Keller.
Action Requested:
The Keller Pointe partners with American Defensive Arts Academy to offer martial arts programs under a revenue-sharing agreement. Per the agreement, 60% of program revenue is paid to American Defensive Arts Academy, while The Keller Pointe retains 40%. This arrangement has been successful and provides a valuable service to the community.
Due to high participation and strong revenue performance, total payments to American Defensive Arts Academy are projected to exceed $50,000.00 during the current fiscal year. While payments are not expected to exceed $70,000, City policy requires City Council approval for any vendor payments anticipated to surpass $50,000.
Approval of this item will ensure compliance with purchasing policies and allow continued delivery of this high-performing program.
Financial Impact:
This program operates under a revenue-sharing model, with 60% of generated revenue going to American Defensive Arts Academy and 40% retained by The Keller Pointe. Martial arts programming remains a top revenue-generating initiative and serves as a key funding source for Recreation Department operations.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Staff recommends approval