Consideration and Approval: Service Provider Contract with United Way of Northern Arizona in the amount of $363,750 for Fiscal Year 2019-2020.

1. Award the Service Provider Contract and allocate funds to United Way of Northern Arizona ("UWNA") in the amount of $363,750 for the fiscal year 2019-2020 to provide community health and human services; and
2. Authorize the City Manager to execute the necessary documents.

In Fiscal Year 2019-2020, the City is seeking to enter into a Service Provider Contract with UWNA to provide community health and human services. The procurement method for selecting UWNA was through a sole source. "Sole source" is defined as:  

  The Sole Source Justification Form for this Service Provider Contract is attached.

If approved, the allocation and administrative costs will be paid from and budgeted in account 001-09-402-1311-1-4273 (Service Provider Contract), in FY 2019-2020.

The Service Provider Contract, in summary, provides the allocation of funds to be used exclusively for assisting nonprofit entities located in Flagstaff in providing community health and/or human services. The recommended action approves the specific allocation of monies for FY 2019-2020 as reviewed and approved by the Board of Directors for UWNA.  Given the total fund allocation of $363,750 to UWNA, $249,688 will be allocated by UWNA utilizing a formal application process to various social service agencies, $63,000 ($70K less 10% Admin Fee for UW administering the funding) for early childhood education (LAUNCH Program) and $51,062 for administrative fees for UWNA to administer the programs.

Historically, formal competitive Requests for Proposals ("RFP") were conducted, however, UWNA has been the only proposer to respond to the RFP.  Based on our research, UWNA is the only local Flagstaff non-profit organization who provide these services. The initial contract term is for one (1) year, with the option to renew the contract for up to four (4) additional one (1) year periods.

11. Effective governance

Yes. In June of 2009, Council approved a 3-year Service Provider Contract, which expired June 30, 2012, with two (2) one (1) year options to extend.  The City exercised both extension years, with the last extension expiring on June 30, 2014.  Prior to the expiration of this multi-year contract, the Purchasing Section conducted a new formal competitive Request for Proposals, with UWNA submitting the only proposal response.  Council approved the 3-year Service Provider Contract, and subsequent two (2) one (1) year options to extend, with the last extension expiring on June 30, 2019.

1.) Approve the contract with UWNA
2.) Consider reducing the funding allocation and have UWNA submit information as to where the cuts would occur (in priority) and the impact of these proposed reductions
3.) Direct Purchasing staff to conduct a formal competitive Request for Proposals

In 1992, the City worked with UWNA to establish a program that allocates City funds to agencies that provide community health and human services. Because of this program, the City, UWNA, and the citizens of Flagstaff have benefited from that partnership for the allocation and disbursement of City general funds for social services to be administered throughout the community.  As mentioned earlier, a formal RFP process was conducted to give other organizations an opportunity to submit a proposal as to how they would serve the City and its citizens, ensuring that City funds are used effectively to benefit targeted populations, and distributed through a volunteer driven and fair process and leveraged with multiple types of resources.

An organization acting on behalf of the City to allocate funds for community health and human services is an arrangement that is very beneficial to the City and provides a “one-stop-shop” for the various social service agencies.

None.

Approval of this Service Provider Contract will permit UWNA to distribute funds to those agencies that are able to provide the necessary health and human services identified as community goals.  The Service Provider Contract requires that a report/presentation be given by UWNA to Council shortly after the Board takes action to approve all funding allocations.

Involve and collaborate. The UWNA Board is a broad representative of the community and includes a participating provider. The Board sets the goals of the UWNA organization necessary to achieve their mission.  The Board continues to involve representatives from the public in review of the agency's activities.