R2007-12 AUTHORIZING INTERGOVERNMENTAL AGREEMENT ENTITLED "LUMP SUM"

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COUNCIL MEMORANDUM i #2007-OS �I DATE: January 18, 2007 ' TO: Honorable Mayor Paul Osborne and City Council 'I FROM: Steve Gar City Manager �' SUBJECT: Animal Cont 1 Agreements RECOMMENDATION: Even though we cannot recommend that the City accept either , contract, we would like for the County to add the following language to both contracts I� before we offer it to the City Council for consideration: , 1. The City may audit the animal control and shelter operation as it deems necessary. II 2. Any surplus that is remaining at the end of each six month period be returned and shared based on percentage of funding by any governmental entity contributing to the County's animal control operation. ' 3. In the event that the City chooses the "Lump Sum" option with the above language , changes, the contribution will be $175,000 on inception and the remainder after six months. BACKGROUND: As you know the County has given the City two contract options for animal control services. The first is the "Lump Sum" agreement, which requires the City to pay the County $350,000 the first year. The second is the "Net" agreement, which requires the City to pay the County 93% of the "Net Costs" or $477,118 the first year. The County has made it clear that these are the only two o�tions on the table. With that being said we still have a problem with recominending either of the two options to the City Council for approval. We currently have a c�ntract in place which requires that we pay the County $124,800 per year. We also collect about $300,000 per year in registration fees, which is turned over to the County on a monthly basis. The $124,800 that we pay to the County is $1.52 per capita. That compares to an average for Champaign, Bloomington, Normal and Springfield of $1.07. Had there been a CPI provision in the current contract, the total we would be paying today would be about $153,700 per year. The "Lump Sum" agreement is an increase of$225,000 c�r 180% over the current contract which has been in place for eight years. At $350,OU0 our per capita costs would increase to $4.28. It is estimated that the CPI provision �vould cause the contract to go up by about $12,000 per year and would end up costing the City about $375,000 in the fifth year.