9.C.
City Council Meeting - FINAL
- Meeting Date:
- 04/16/2024
- From:
- Rick Tadder, Management Services Director
TITLE:
Consideration and Approval of Cooperative Agreement: A Cooperative Agreement between the City of Flagstaff and Flagstaff Metropolitan Planning Organization for the purposes of a cash advance fund.
STAFF RECOMMENDED ACTION:
Approve the Cooperative Agreement between the City of Flagstaff and Flagstaff Metropolitan Planning Organization for the purposes of a cash advance fund.
Executive Summary:
The Cooperative Agreement between the City of Flagstaff and Flagstaff Metropolitan Planning Organization DBA MetroPlan ("FMPO" or "MetroPlan") allows the City to provide a cash advance fund to assist the FMPO with business operations related to project and planning grants that benefit the City. The time between a grant reimbursable expense is incurred by FMPO to the time that a federal, state or local government reimburses the FMPO may often take greater than 60 days to receive the cash. During this time additional bills and operational expenses need to be paid. This could create some delays in paying vendors if the cash is not available. Most of the services FMPO provide are related to grant projects. This cash advance fund will be restricted for use related to managing the cash flow while waiting on grant reimbursements.
Financial Impact:
The cash advance fund will be considered a receivable on the City of Flagstaff's balance sheet, therefore no budget appropriation is required for this item. Should the City determine the monies advanced are critical to the City's operations or if the cash advance fund is no longer needed, the funds may be returned to the City with a 90-day notice.
Policy Impact:
None
Previous Council Decision or Community Discussion:
No
Options and Alternatives to Recommended Action:
- Approve the Cooperative Agreement
- Amend and approve the Cooperative Agreement
- Do not approve the Cooperative Agreement
Background and History:
Last November the City was approached by FMPO to discuss cash flow needs related to their operations. Due to the increase in federal grant revenues available due to bills like the Infrastructure Investment and Jobs Act and others, there has been a larger number of reimbursable grants managed by FMPO which in turns requires higher cash needs while waiting for reimbursements. Keeping a fiscally strong cash fund available is prudent for the health of the organization and ability to pay vendors timely for services provided. The City met with FMPO and determined the City can assist by providing a cash advance fund to assist our community partner. We agreed to support an Intergovernmental Agreement to be the mechanism to provide the cash advance fund. The Intergovernmental Agreement must be approved by the City Council and the FMPO/MetroPlan Board.
Connection to PBB Priorities and Objectives:
None
Connection to Regional Plan:
None
Connection to Carbon Neutrality Plan:
None
Connection to 10-Year Housing Plan:
None