Consent 1.B.
Regular City Council Meeting
- Meeting Date:
- 09/26/2011
- TITLE
- Yellowstone Valley Animal Shelter Contract Renewal
- PRESENTED BY:
- Tina Volek, City Administrator and Craig Hensel, Deputy City Attorney
- Department:
- Legal
Presentation:
PROBLEM/ISSUE STATEMENT
The City Council voted in September of 2008 to privatize the City Animal Shelter, and entered into a contract with the Yellowstone Valley Animal Shelter (YVAS) to manage and run the animal shelter. YVAS took over the day to day operations of the animal shelter in March of 2009, and has been operating the shelter ever since. The original contract called for a contract term of two (2) years with three (3) 1-year options to renew by mutual agreement of both parties. City staff and representatives from YVAS have negotiated the terms of a contract extension and are in mutual agreement to extend the terms of the contract for an additional two year period, effective upon approval by the Council.
The majority of provisions in the original contract will remain unchanged for the two year period of renewal. The only substantive changes to the contract are as follows:
1) The original contract required YVAS to maintain a line of credit equal to the annual contract price that the City could execute on in the event of default. As YVAS has successfully run the shelter for a two year period and has a demonstrated track record of success, this term was modified and the renewal will require YVAS to escrow one month’s payment (approximately $20,666) in an interest bearing account the City can execute on in the event of default.
2) The original contract called for three (3) 1-year options to renew, and the renewal will provide for a two (2) year option to renew.
3) The original contract required an annual financial audit. The renewal will require a biennial financial statement be provided to the City.
The majority of provisions in the original contract will remain unchanged for the two year period of renewal. The only substantive changes to the contract are as follows:
1) The original contract required YVAS to maintain a line of credit equal to the annual contract price that the City could execute on in the event of default. As YVAS has successfully run the shelter for a two year period and has a demonstrated track record of success, this term was modified and the renewal will require YVAS to escrow one month’s payment (approximately $20,666) in an interest bearing account the City can execute on in the event of default.
2) The original contract called for three (3) 1-year options to renew, and the renewal will provide for a two (2) year option to renew.
3) The original contract required an annual financial audit. The renewal will require a biennial financial statement be provided to the City.
ALTERNATIVES ANALYZED
The Council may:
- Approve the contract renewal with YVAS; or
- Deny the contract renewal with YVAS
FINANCIAL IMPACT
The City of Billings paid YVAS $240,673 for the most recent year of the contract. YVAS negotiated an approximate 3% increase for the contract renewal term, and will be paid $248,000 for year 3, which will be increased for year 4 corollary to the all inclusive Consumer Price Index.
RECOMMENDATION
Staff recommends the Council approve the contract renewal with YVAS.