9.
City Council Work Session
- Meeting Date:
- 06/14/2022
- From:
- Rick Tadder, Management Services Director
- Department:
- Management Services
Co-Submitter:
Greg Clifton, City Manager; Budget Team
TITLE:
High Country Humane Presentation and Intergovernmental Agreement Discussion
DESIRED OUTCOME:
City Council direction on possible funding and amendments to the Intergovernmental Agreement with Coconino County for Animal Sheltering Services.
EXECUTIVE SUMMARY:
High Country Humane will be providing a presentation to City Council to discuss services provided, current funding and a request to increase funding. City Staff will present some financial history on the Intergovernmental Agreement with Coconino County (IGA). Staff will seek City Council direction on possible funding and amendments of the IGA.
INFORMATION:
On October 16, 2018, City Council approved Resolution #2018-47 approving the proposed IGA between the City of Flagstaff, Coconino County, and Paw Placement of Northern Arizona (PPNAZ) doing business as High Country Humane. Additionally, this same IGA was presented and approved by the Coconino County Board of Supervisors on October 16, 2018. The City shares the cost at 55% ($280,500 City), 45% ($229,500 County) for operations and costs at 50% ($12,390 each) for maintenance. In addition, the County funds 100% ($40,800) for capital improvements.
In February 2020, High Country Humane approached both the City of Flagstaff and Coconino County requesting assistance to cover the higher expenses they were experiencing. High Country Humane requested a one-time for fiscal year 2019-20 in an amount of $48,332.00 ($26,583 City, $21,749 County) which is in line with the allocation percentages under the original IGA. High Country Humane also requested an increase in fiscal years 2020-2021 and 2021-2022 of $145,000 ($79,200 City, $65,800 County) which is in line with the allocation percentages under the original IGA. High Country Humane presented to City Council on March 10, 2020 about services and increase funding request. Council gave direction to amend the IGA with the requested increases. On July 7, 2020, City Council approved Resolution #2020-42 approving the amendment to the IGA between the City of Flagstaff and Coconino County.
*plus an additional $48,332 funding in fiscal year 2019-20
In January 2022, High Country Humane sent a letter to the City requesting consideration of a $590,000 yearly increase to the contract beginning in fiscal year 2022-23. The City and County began discussions on what the impacts to the IGA would entail. Based on current data, the funding percentages would potentially change where the City now funds 45% of the operations versus the current 55% of operations. The County also recommended increasing the operating budget by only $390,000 in the amended IGA, discussions about which are continuing. The impact to the City with these changes would be $124,500. At the April 2022 Budget Retreat, staff presented the request to Council for consideration. Due to available resources in the General Fund, this is recommended for consideration of one-time funding for the fiscal year 2022-23 budget adoption. Council did not approve this additional funding due to lack of information available. City staff met with High County Humane to discuss next steps and recommended a presentation to Council on the operations and funding request. This meeting is providing that opportunity. Below is the County’s funding recommendation for the possible 2022 IGA amendment:
The City budget will be adopted on June 21, 2022 with funding for this contract at the 2018 IGA level which is $292,890. The proposed increase would be $124,500 to the City. The Budget Team discussed this funding request. If Council would like to proceed with a one-time increase, the Budget Team will be able to identify funding in fiscal year 2022-23 from our contingency budget in the General Fund. Again, due to available resources in the General Fund, this is recommended consideration of one-time funding for the fiscal year 2022-23 budget adoption. We do not recommend an ongoing increase of the funding currently. We would anticipate having an opportunity to be part of negotiating future cost increases with the County and High Country Humane next fiscal year and potentially bring forward another amended IGA if an increase funding need is needed.
| 2018 IGA | Total IGA | City $ | City % | County $ | County % |
| Operations | $510,000 | $280,500 | 55% | $229,500 | 45% |
| Maintenance | $24,780 | $12,390 | 50% | $12,390 | 50% |
| Totals | $534,780 | $292,890 | $241,890 |
In February 2020, High Country Humane approached both the City of Flagstaff and Coconino County requesting assistance to cover the higher expenses they were experiencing. High Country Humane requested a one-time for fiscal year 2019-20 in an amount of $48,332.00 ($26,583 City, $21,749 County) which is in line with the allocation percentages under the original IGA. High Country Humane also requested an increase in fiscal years 2020-2021 and 2021-2022 of $145,000 ($79,200 City, $65,800 County) which is in line with the allocation percentages under the original IGA. High Country Humane presented to City Council on March 10, 2020 about services and increase funding request. Council gave direction to amend the IGA with the requested increases. On July 7, 2020, City Council approved Resolution #2020-42 approving the amendment to the IGA between the City of Flagstaff and Coconino County.
| 2020 IGA | Total IGA | City $ | City % | County $ | County % |
| Operations | $510,000 | $280,500 | 55% | $229,500 | 45% |
| Ops 1X/2Years | $145,000 | $79,200 | 55% | $65,800 | 45% |
| Maintenance | $24,780 | $12,390 | 50% | $12,390 | 50% |
| Totals | $679,780 | $372,090 | $307,690 |
In January 2022, High Country Humane sent a letter to the City requesting consideration of a $590,000 yearly increase to the contract beginning in fiscal year 2022-23. The City and County began discussions on what the impacts to the IGA would entail. Based on current data, the funding percentages would potentially change where the City now funds 45% of the operations versus the current 55% of operations. The County also recommended increasing the operating budget by only $390,000 in the amended IGA, discussions about which are continuing. The impact to the City with these changes would be $124,500. At the April 2022 Budget Retreat, staff presented the request to Council for consideration. Due to available resources in the General Fund, this is recommended for consideration of one-time funding for the fiscal year 2022-23 budget adoption. Council did not approve this additional funding due to lack of information available. City staff met with High County Humane to discuss next steps and recommended a presentation to Council on the operations and funding request. This meeting is providing that opportunity. Below is the County’s funding recommendation for the possible 2022 IGA amendment:
| 2022 Proposed | Total | City $ | City % | County $ | County % |
| Operations | $900,000 | $405,000 | 45% | $495,000 | 55% |
| Maintenance | $24,780 | $12,390 | 50% | $12,390 | 50% |
| Totals | $924,780 | $417,390 | $507,390 |
The City budget will be adopted on June 21, 2022 with funding for this contract at the 2018 IGA level which is $292,890. The proposed increase would be $124,500 to the City. The Budget Team discussed this funding request. If Council would like to proceed with a one-time increase, the Budget Team will be able to identify funding in fiscal year 2022-23 from our contingency budget in the General Fund. Again, due to available resources in the General Fund, this is recommended consideration of one-time funding for the fiscal year 2022-23 budget adoption. We do not recommend an ongoing increase of the funding currently. We would anticipate having an opportunity to be part of negotiating future cost increases with the County and High Country Humane next fiscal year and potentially bring forward another amended IGA if an increase funding need is needed.