7.F.
City Council Meeting - FINAL
- Meeting Date:
- 06/17/2025
- Co-Submitter:
- Rick Tadder
- From:
- Patrick Brown, Purchasing Director
TITLE:
Consideration and Approval of Contract: Service Provider Contract with United Way of Northern Arizona
STAFF RECOMMENDED ACTION:
- Approve the Service Provider Contract with United Way of Northern Arizona for City-Wide Community Health and Human Services; and
- Authorize the City Manager to execute the necessary documents.
Executive Summary:
Historically, the City has contracted with United Way of Northern Arizona to allocate City funds reserved for City-wide Community Health and Human Service programs to local social service agencies primarily for the benefit of low and moderate income residents of the City. The City and United Way of Northern Arizona have had a positive relationship throughout these contract years and United Way of Arizona has satisfactorily provided the personnel necessary to organize and provide said services.
The most recent service provider contract between the City and United Way of Northern Arizona expired on September 2, 2024. However, the City and United Way of Northern Arizona have continued to perform under the terms and conditions of that service provider contract. The City desires to continue the contractual relationship with United Way of Northern Arizona Provider and to approve this Service Provider Contract will delegate certain program administration and monitoring responsibilities regarding the allocation of City funds.
The contract term is for five (5) consecutive years with the possibility of five (5) additional one-year extensions. Payment for FY2025 and FY2026 have been identified in the Service Provider Contract. However, each subsequent year, City staff and United Way of Northern Arizona will have the ability to negotiate payment which will be presented to the City Council through the budgetary process. The approved budgeted allocation will be executed through a formal amendment to the Service Provider contract at the beginning of the corresponding fiscal year.
The most recent service provider contract between the City and United Way of Northern Arizona expired on September 2, 2024. However, the City and United Way of Northern Arizona have continued to perform under the terms and conditions of that service provider contract. The City desires to continue the contractual relationship with United Way of Northern Arizona Provider and to approve this Service Provider Contract will delegate certain program administration and monitoring responsibilities regarding the allocation of City funds.
The contract term is for five (5) consecutive years with the possibility of five (5) additional one-year extensions. Payment for FY2025 and FY2026 have been identified in the Service Provider Contract. However, each subsequent year, City staff and United Way of Northern Arizona will have the ability to negotiate payment which will be presented to the City Council through the budgetary process. The approved budgeted allocation will be executed through a formal amendment to the Service Provider contract at the beginning of the corresponding fiscal year.
Financial Impact:
Project Name: Community Health and Human Services
Cost: FY2024-25 $323,950 and FY2025-26 $333,750
Account Number Budgeted: 001-09-402-1311-1-4273
FY Budgeted Amount: FY2024-25: $323,950 and FY2025-26: $333,750
Grant Funded: No
Funding Source: General Fund
Cost: FY2024-25 $323,950 and FY2025-26 $333,750
Account Number Budgeted: 001-09-402-1311-1-4273
FY Budgeted Amount: FY2024-25: $323,950 and FY2025-26: $333,750
Grant Funded: No
Funding Source: General Fund
Policy Impact:
The Service Provider Contract, in summary, provides the allocation of funds to be used exclusively for assisting nonprofit entities located in Flagstaff in providing health and/or human services. The recommended action approves the specific allocation of monies for FY 2025 and FY2026 as reviewed and approved by the Board of Directors for United Way of Northern Arizona. Given the total fund allocation of $323,950 for Fiscal Year 2025 and $333,750 for Fiscal Year 2026 to United Way of Northern Arizona, the agency will utilize a formal application process to various social service agencies. Historically, formal competitive Request for Proposals ("RFP") were conducted, with United Way of Northern Arizona always being the only Proposer to respond to the RFP. Based on our research, United Way of Northern Arizona is the only local Flagstaff non-profit organization who provides these services. The initial contract term is for five (5) years, with the option to extend the contract for up to five (5) additional one (1) year periods.
Previous Council Decision or Community Discussion:
Yes. In June of 2009, Council approved a 3-year service 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 contract, and subsequent two (2) one (1) year options to extend, with the last extension expiring on June 30, 2019. In August of 2019, the Purchasing researched other potential providers for this service and found there we none to service the greater flagstaff area. On August 16, 2019, the Purchasing Director determined the procurement to be a sole source and on September 3, 2019, Council approved a new contract with an initial term of one (1) year with four (4) one extensions option. In April 2025, the Purchasing Director renewed the sole source procurement justification and is now presenting council with this next contract with a longer possible term of an initial five (5) years with five (5) one year extensions.
Options and Alternatives to Recommended Action:
- Approve the Service Provider Contract with United Way of Northern Arizona; or
- Not provide any funding to United Way of Northern Arizona; or
- Consider reducing the funding allocation and have United Way of Northern Arizona submit information as to where the cuts would occur (in priority) and the impact of these proposed reductions; or
- Direct Purchasing staff to conduct a formal competitive Request for Proposals.
Background and History:
In 1992, the City worked with United Way of Northern Arizona to establish a program that allocates City funds to agencies that provide health and/or human services. Because of this program, the City of Flagstaff, United Way of Northern Arizona, and the citizens of Flagstaff have benefited from that partnership for the allocation and disbursement of City of Flagstaff 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.
Connection to PBB Priorities and Objectives:
Safe and Healthy Community/Livable Community
Connection to Regional Plan:
Not Applicable.
Connection to Carbon Neutrality Plan:
Not Applicable.
Connection to 10-Year Housing Plan:
Not Applicable.
Connection to Division Specific Plan:
Not Applicable.