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| TITLE: |
| Consideration and Adoption of Resolution No. 2023-31: A resolution approving the Third Amendment to the Intergovernmental Agreement and Third-Party Agreement between the City of Flagstaff, Coconino County and Paw Placement of Northern Arizona dba High Country Humane for Animal Sheltering Services. |
| STAFF RECOMMENDED ACTION: |
1) Read Resolution No. 2023-31X by title only
2) City Clerk reads Resolution No. 2023-31 by title only (if approved above)
3) Adopt Resolution No. 2023-31
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| Executive Summary: |
| This Third Amendment to the Intergovernmental Agreement (IGA) with Coconino County and Third-Party Agreement with Paw Placement of Northern Arizona dba High Country Humane (High Country) to provide Animal Sheltering Services includes a five year extension, expiring on June 30th, 2029. This Third Amendment will provide compensation from the City in the amount of $417,150 per year or $34,762.50 monthly, subject to annual price adjustments. |
| Financial Impact: |
This Third Amendment includes a five (5) year extension, expiring on June 30th, 2029, and will provide compensation from the City in the amount of $417,150 per year or $34,762.50 monthly, subject to annual price adjustments. The City will also apply a CPI increase to the maintenance and repair costs, which are paid directly to High Country. The current maintenance and repair costs is $12,390 which is paid annually. These CPI increases are consistent with what the County has agreed to pay to High Country as well.
Annual price adjustments shall be included at a minimum of 1% and not to exceed 3% based on the Consumer Price Index for all Urban Consumers (CPI-U): U.S. city average, by expenditure category, 12-month analysis table, using the expenditure category "Pet Services Including Veterinary" https://stats.bls.gov/news.release/cpi.t07.htm#cpipress7.f.4 released in January of each year and applied to annual compensation under Section III.A.1.i of the Agreement. The adjusted CPI-U will be applied on July 1 of each year, beginning July 1, 2023.
Maintenance annual price adjustments shall be included at a minimum of 0% and not exceed 5% based on the CPI-U: U.S. city average, by expenditure category, 12-month analysis table, using the expenditure category “All Items Less Food and Energy” https://stats.bls.gov/news.release/cpi.t07.htm#cpipress7.f.4 released in January of each year and applied to the annual compensation under Section III.A.2 of the Agreement. The adjusted CPI-U will be applied on July 1 of each year, beginning July 1, 2023.
If the Third Amendment is approved, the estimated FY 2024 CPI increase for compensation will be 3%, and the CPI increase for repair and maintenance will be 5%. The resulting FY 2024 estimate for compensation will increase from $405,000 per year or $33,750 monthly, going to $417,150 per year or $34,762.50 monthly, subject to annual price adjustments.
The resulting FY 2024 estimate for repair and maintenance will increase from $12,390 per year, making the new amount $13,009 per year.
No increase to the agreement amount above the CPI-U increases may be proposed by the High Country for the remaining term of the agreement.
The FY2024 Budget for this contract is included in the General Fund in account 001-09-402-1311-1-4273 for a total of $430,160.
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| Policy Impact: |
| None |
| Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan: |
Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics.
Improve the effectiveness of notifications, communication, and engagement with residents, neighborhoods and businesses and about City services, programs, policies, projects and developments. |
| Has There Been Previous Council Decision on This: |
On October 16, 2018, the City Council adopted Resolution #2018-47 approving an IGA between the City of Flagstaff and Coconino County and a Third-Party Agreement with High Country to provide Animal Sheltering Services. Additionally, this same IGA/Third-Party Agreement was presented to and approved by the Coconino County Board of Supervisors on October 16, 2018.
On July 7, 2020, the City Council approved Resolution #2020-42 approving the First Amendment to the IGA/Third-Party Agreement.
On November 15, 2022, the City Council approved Resolution #2022-53, approving the Second Amendment to the IGA/Third-Party Agreement. |
| Options and Alternatives: |
- Approve the Third Amendment to the IGA/Third-Party Agreement with Coconino County and High Country; or
- Do not approve the Third Amendment to the IGA/Third-Party Agreement.
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| Background/History: |
In 2017, City staff were approached by the County and asked if the City would be interested in a joint County/City Request for Proposals (RFP) for Animal Shelter Services. The owner of the Second Chance Center for Animals indicated a possible interest in donating the property and building to the County if the primary use and purpose were for an animal shelter. On April 27, 2018, a joint County/City RFP was advertised, and two proposers responded: Coconino Humane Society and High Country.
After the evaluation/scoring process and negotiations with both proposers, the City and the County determined that High Country was the highest scoring organization that met the needs of both agencies. On October 16, 2018, the City Council adopted Resolution #2018-47 approving the original IGA/Third-Party Agreement between the City, the County, and High Country. Simultaneously, this same IGA/Third-Party Agreement was presented and approved by the Coconino County Board of Supervisors on October 16, 2018.
The original term of this IGA/Third-Party Agreement was from October 16, 2018, through June 30, 2024. Under the original term of the IGA/Third-Party Agreement, the contract may be renewed for up to one (1) additional, five (5) year extension by mutual written consent of the parties.
High Country presented to the City Council again on March 10, 2020, about services and an increased funding request. The City Council gave direction to amend the original IGA/Third-Party Agreement with the requested increases. On July 7, 2020, City Council adopted Resolution #2020-42 approving the First Amendment to the IGA/Third-Party Agreement between the City, the County, and High Country.
In January 2022, High Country sent a letter to the City requesting a yearly increase to the contract beginning in Fiscal Year 2022-23. The City and the County began discussions on the impacts that the increase would have on Animal Sheltering Services. The City Council agreed to a one time increase for Fiscal Year 2022-23 in the amount of $124,500, there by adding to the existing City compensation amount of $292,890, for a total compensation of $417,390 for Fiscal Year 2022-23.
On November 15, 2022, the City Council approved a Second Amendment to the IGA/Third-Party Agreement to provide Animal Sheltering Services. The Second Amendment included language that all three of the involved parties requested. The Second Amendment to the IGA/Third-Party Agreement was drafted jointly by operational staff from all three entities. It included further definitions and adds clarifying language to outline the roles and responsibilities of the parties. |
| Community Benefits and Considerations: |
| The City benefits by having a longer term contract with a facility which will continue to accept and provide care and shelter for the adoption of stray dogs and cats. |
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