TECHNOLOGYREJECTED

City of Lathrop Staff Report Rescind Resolution No. 26-5958 2026-05-11

Lathrop rescinds recreation software deal with Kaizen

Not to exceed $106,197; $18,500 annually with escalators; 2% Technology Fee on Gross Billing; $1,495 hardware; various payment processing feesCity of LathropKAIZEN LABORATORIES INCMay 11, 2026

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Description

The City of Lathrop had approved a five‑year SaaS contract with Kaizen Laboratories, Inc. for a recreation registration software management system valued at up to $106,197 plus transaction-based fees, running from February 9, 2026 through June 30, 2031. After Kaizen rescinded its proposal and declined to sign, the City Council moved on May 11, 2026 to rescind the prior resolution approving the agreement and to reject all RFP proposals in order to re‑advertise.

Contract Details

Contract Amount

Not to exceed $106,197; $18,500 annually with escalators; 2% Technology Fee on Gross Billing; $1,495 hardware; various payment processing fees

Vendor

KAIZEN LABORATORIES INC

Agency

City of Lathrop, CA

Contract Type

TECHNOLOGY

Document Date

May 11, 2026

Contract Term

Effective February 9, 2026; five (5) year term through June 30, 2031; Order Form initial service term 5 years with 2-year renewal term

Renewal Date

2031-06-30

Renewal Info

Initial five-year SaaS term beginning February 9, 2026 with termination no later than June 30, 2031, plus a stated 2-year renewal term in the Order Form. Annual software subscription starts at $18,500, increases to $20,000 on the first anniversary and by 5% annually thereafter unless renegotiated. Agreement also contemplated a 2% Technology Fee on Gross Billing and ongoing payment processing fees. The agreement never became effective because Kaizen rescinded its proposal prior to signing, and the City rescinded its approval via Resolution on May 11, 2026.