Consideration and Approval of Contract: Approve the Contract with Creative Flagstaff to serve as the City's Lead Arts Agency (LAA) and Grantmaking Agency (GMA) for Arts, Culture and Science.
 

1. Approve contract #2025-176 with Creative Flagstaff
2. Authorize the City Manager to execute the necessary documents. 

The City of Flagstaff receives and allocates a portion of the revenues generated from a local transaction privilege tax rate of 2% on Hotels, Restaurants and Bars (also known as the Bed, Board, and Beverage tax or BBB tax) to Arts, Culture and Science in the community as prescribed by ordinance (7.5% of revenues). For many years, the City has used the services of a Lead Arts Agency (LAA - which is a term of art encompassing Arts, Culture and Science) to enhance the vibrancy and depth of arts, culture and science in the community in coordination and partnership with the City's Arts and Science program. This entity has also administered the pass-through of grant funds to sector-specific non-profits and creatives to assist them in producing expressions of public arts, culture and science. There are often over 40 grant recipients each year. This past year, with the expiration of the previous contract, the City worked with a consultant to survey community leaders in these areas to better understand how the City's investments were working and what could be improved. That study (attached) produced a document which provided an assessment of the state and future of the sectors, and ideas for how to best enhance them. Both the need for a sophisticated LAA, and the need for continued grant making to the non-profit and creative community, were clear in the feedback received. 

The results were used by staff to inform the development of a scope of work for the Request for Statement of Qualifications (RSOQ) which was released to identify the City's next LAA and GMA. For this process, to allow broader possible participation, the opportunity was provided to submit responses for one or both parts of the relationship. Creative Flagstaff, who has been the City's LAA and GMA for the past 7-year contract as well as in the past, was the sole and successful respondent for both components. 

This contract will enter into a 5-year commitment (with the option to renew for up to 3 additional 1-year terms) with Creative Flagstaff for the LAA services and to act as our GMA. While the Scope of Work will remain consistent throughout the term, each year a new Addendum will be brought to City Council outlining the new amount being allocated in the contract through the Budget process, which is based on BBB receipts, budget priorities, and fund capacity, as well as the specific activities to be accomplished in support of the scope of work. Per ordinance, these BBB funds must go to benefit the Arts, Science and Culture and cannot be used for activities not aligned with those goals. 

For the first year of this contract the City is proposing to spend $275,575 for the LAA activities (inclusive of $100,000 for events and festivals such as ArtX), and $851,000 for pass- through grants to non-profits and the creative community (inclusive of Creative Flagstaff's 15% administrative fee). The scope of work and specific activities will be further outlined below.   

Project Name: Lead Arts Agency and Grantmaking Agency for Arts, Culture and Science
Cost: $1,126,575
Account Number Budgeted: 054-07-216-0872-5-4273 : Service Partner Contracts; 054-07-216-0873-5-4273 : Service Partner Contracts; 054-07-216-0873-5-4290 : Other Miscellaneous Services 
FY Budgeted Amount: $1,126,575 ($275,575 LAA and $851,000 GMA pass-through and administration)
Funding Source: BBB - Arts and Science funding

Council heard a discussion on the BBB tax, and on the previous contract's annual report, on September 24, 2024.

The City's Arts, Culture and Science survey (attached) was presented to Council on January 14, 2025.

Council may choose to approve the contract as is.

Council may choose to request amendments to the contract and staff will work to negotiate those amendments with Creative Flagstaff and bring the contract back for approval.

Council may choose not to approve the contract and provide direction on how they would prefer to invest BBB - Arts and Science funding.

As stated above, the contract has two distinct components, but these components will support and enhance each other. The LAA Scope of Work activities include serving as the coordinating agency for the arts, culture and science endeavors in the Flagstaff area including, but not limited to:

1.  
   1. Long-range planning to address opportunities and gaps in sector and infrastructure.
   2. Leadership and coordination with outside agencies, as well as within the community.
   3. Promotional activities for the community and the sector to enhance participation, audiences, community awareness, and potential funding.
   4. General and technical support for individuals, programs, activities and organizations.
   5. Enhancement of community funding through grants and other means.
   6. and serving as a source of direct arts, science and cultural provision generating exhibitions and events that enhance the sector and provide vitality to the community. This will increase participation opportunities for residents and stimulate public and private support for arts, culture and science endeavors. Offerings will be reviewed as a part of the amended scope of services each year.

In the accomplishment of these items there are requirements, also outlined in the scope of work, for the LAA staff to meet with City staff to coordinate the activities and to present accomplishments and updates to City Council annually. The specifics of their efforts to achieve the scope of work above are outlined in the Addendum and will be updated each year based on the available budget and best use of funds. This year's addendum includes specific professional development activities and workshops, festivals such as ArtX, performances and exhibitions at the Coconino Center for the Arts, and a myriad of others.

As Grantmaking Agency (GMA), Creative Flagstaff is responsible for providing a fair and impartial grant process. Specifically, they will be appointing a review committee composed of area residents with one member representing the City Arts and Science Program which shall:

1.  
   1. Review funding proposals programmatically, financially and administratively using a ranking system and taking into account availability of funding, diversity of offerings and demonstrated public benefit from proposals.
   2. Make funding recommendations which shall be approved by the GMA Board of Directors prior to disbursement.
   3. Disburse all funding in a timely and effective manner.
   4. Notify organizations of requirements and payment schedules.
   5. Monitor funded programs and finances for compliance.
   6. GMA will provide the following deliverables:
      1. Annual Request for Proposals document prior to release. City will be able to request amendments to ensure process achieves City goals.
      2. Annual meeting with City staff to discuss any desired adjustments to the process.
      3. Proposed service agreement text. City will review for consistency with City goals.
      4. Rating and evaluation form used for the scoring of proposals.
      5. Verbal presentation to City Council and written report summarizing funding allocations and benefits achieved through grant process.

Alongside the above, the GMA is also obligated to meet with City staff once a year to go over improvements and ideas for the process.

These cumulative efforts are designed to create direct artistic impact through festivals, exhibits and performances, provide professional development to non-profits and creatives directly, and provide funding for great art, science and culture in the community. Flagstaff gives a larger amount of grant funding towards these activities than most cities and this was applauded in the public comment as part of the surveys. In times when Federal and State resources seem less certain, these funds become a critical tool in helping Flagstaff residents create amazing art, culture and science and add to the quality of life and fabric of the community.

Purchasing staff posted a Request for Statement of Qualifications (RSOQ) solicitation on February 7th, 2025 on the City's PlanetBids online solicitation platform. Purchasing yielded responses from one (1) interested firm -- Creative Flagstaff. The RSOQ was also advertised in the AZ Daily Sun on February 15th, and Februar 22nd, 2025. An evaluation committee of five members, including two (2) members outside of the City, evaluated the singular SOQ submitted. As a result of the scoring and discussion meeting, the evaluation committee determined Creative Flagstaff to be a qualified firm to serve as the Lead Arts and Grant Making Agency for the City of Flagstaff. The scoring for Creative Flagstaff's submission is listed below:

Creative Flagstaff
Lead Arts Agency Scoring - 488 out of 500
Grant Making Agency Scoring - 465 out of 500