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9.A.
City Council Meeting - FINAL (AMENDED)
Meeting Date:
12/17/2019
From:
Charity Lee, Real Estate Manager

Information

TITLE:

Consideration and Approval of Contract: Category 5 Master Cost Recovery Agreement between USDA, Forest Service, Coconino National Forest and the City of Flagstaff.

STAFF RECOMMENDED ACTION:

Approve the Master Cost Recovery Agreement Between U.S. Department of Agriculture (USDA), Forest Service, Coconino National Forest, and City of Flagstaff.

Executive Summary:

On June 18, 2019, Council approved the Category 5 Master Cost Recovery Agreement (the "Agreement") between the USDA, Forest Service, Coconino National Forest and the City of Flagstaff to expedite the processing of special use permits for City projects on Forest Service lands.  The Agreement was to be funded with an initial $15,000.00, however, this number does not represent the actual costs of processing the applications.  The Forest Service evaluated the actual costs and redrafted a new Agreement which details a breakdown of fees per project.  The total processing cost is $22,352.00 for the three City projects shown below.

1. Sheep Crossing                                            $4,936.80
2. Lake Mary #2 Communication Tower           $3,898.40
3. Cinder Lake Landfill Project estimated at    $13,516.80
Total Estimated Cost                                       $22,352.00

Processing fees are based upon the direct and indirect costs that the Forest Service incurs in reviewing the applications, conducting environmental analyses, reviewing documents and studies, conducting site visits, evaluating the applicant's technical and financial qualifications, and authorizing the applications. The processing fee shall be based only on costs that are necessary to process the applications.

Additional projects may be added to the Agreement through an Addendum which will update the processing costs for any additional applications.



 

Financial Impact:

The City shall pay $22,352 within 30 days of the date the bill for the fee was issued. 

If payment of the processing fee exceeds the Forest Service's final processing costs the Forest Service shall either
(a) refund the excess payment to the applicant
(b) at the applicant's request, shall credit it towards monitoring fees due

The Forest Service shall annually report costs incurred for processing the applications by providing a financial statement to the City of Flagstaff.

When the estimated processing costs are lower than the final processing costs the Forest Service will bill the City and the City shall pay the difference within 30 days.

Policy Impact:

None

Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:

TRANSPORTATION AND OTHER PUBLIC INFRASTRUCTURE
Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.

Has There Been Previous Council Decision on This:

Yes, Council approved the Category 5 Master Cost Recovery Agreement on June 18, 2019, for an initial processing fee of $15,000.

Options and Alternatives:

1. Approve the Agreement with the Forest Service.
2. Do not approve the Agreement which may delay the City projects.

Background and History:

The City has many projects that cross Forest Service land and require special use permits from the Forest Service prior to the commencement of any work.  These are a range of capital improvement projects; water, communication, transportation, and multi-modal transportation.  The Master Cost Recovery Agreement will help to expedite the processing of the applications with the Forest Service.  The projects that are currently in review with the Forest Service are the following.

1. Sheep Crossing                                           
2. Lake Mary #2 Communication Tower          
3. Cinder Lake Landfill Project estimated 

 

Key Considerations:

 Approval of the Mater Cost Recovery Agreement will allow the Forest Service to process the City's applications and help to expedite the process.

Community Involvement:

City capital projects will be processed quicker and will result in benefits to the community. 
Current projects are related to water, FUTS and road improvement projects.

Expanded Options and Alternatives:

Inform

Attachments