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Trustees press vendors on startup costs; two contracts tabled, one approved
Summary
The board debated vendor startup costs and consistency across applications for summer and after‑school programs. Staff presented three contracts: UC Merced Bobcat Summer Academy ($263,640) and UC Merced Caltech tutors ($374,790) were tabled pending legal guidance on startup costs; Schoolyard RAP (spring/summer) totaling up to $270,000 was approved after trustee questioning about guarantees and program value.
Merced City School District trustees spent substantial time on Jan. 14 questioning vendor startup costs and the district’s approach to paying upfront expenses for summer and after‑school contracts.
Staff presented three separate items: a UC Merced Bobcat Summer Academy contract (up to $263,640) intended to serve up to 600 students over multiple sessions; a Schoolyard RAP spring and summer contract (two components valued up to $120,000 and $150,000 respectively); and an 18‑month UC Merced Caltech tutors contract (up to $374,790) to support after‑school tutoring for up to 320 students.
Trustees repeatedly asked whether the district should pay vendor startup costs and whether that practice is being applied uniformly. Trustee questions flagged specific startup-cost amounts listed in contract packets (the Bobcat item referenced startup costs of $87,882 and the Caltech tutors item $93,697.50). Trustee Delgado and others said the district must adopt a consistent approach rather than picking and choosing which vendors receive upfront funds.
Staff said they would seek legal guidance and update the Request for Funding Application to state whether vendor startup costs are allowable and, if so, under what conditions. That request for standardization prompted trustees to move the UC Merced Bobcat and UC Merced Caltech items to a future meeting so the board could review legal and subcommittee recommendations.
Schoolyard RAP’s CEO Brandon Brown defended his program’s pricing and staffing model and described the program’s cultural and mentorship components. Brown said the organization staffs to capacity regardless of final enrollment to maintain the intended staff‑to‑student experience. Following discussion, the board approved the Schoolyard RAP spring/summer contract by voice vote.
Why it matters: trustees framed the issue as one of equity and financial stewardship — asking whether the district should subsidize start‑up costs for vendors (potentially advantaging some providers) or require vendors to absorb initial expenses unless a consistent exception is defined.
Next steps: staff will seek legal advice and return with a clarified Request for Application and recommended standard language about vendor startup costs for future agendas.
