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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/16/2021 - ITEMS RELATING TO THE GARDENS ON SPRING CREEK/BUTT Agenda Item 17 Item # 17 Page 1 AGENDA ITEM SUMMARY November 16, 2021 City Council STAFF Michelle Provaznik, Director, Gardens on Spring Creek Ted Hewitt, Legal SUBJECT Items Relating to The Gardens on Spring Creek/Butterfly Pavilion Butterfly House Operations. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 160, 2021, Approving a Contract Term of up to Ten Years for Butterfly House Operations by Rocky Mountain Butterfly Consortium, dba Butterfly Pavilion. B. Resolution 2021-104 Approving an Exception to the Use of a Competitive Process for Butterfly House Operations by Rocky Mountain Butterfly Consortium, dba Butterfly Pavilion. The purpose of this item is to request an exception to the competitive bid process and a contract term of up to 10 years beginning November 16, 2021, to continue the services being provided by the Butterfly Pavilion for butterfly operations of the Butterfly House at The Gardens on Spring Creek. Approval of this exception may be used as authorized in City Code Section 8-161(d)(4) as the basis for the City Manager and the Purchasing Agent to negotiate and agree to the additional purchase of butterfly management services from Butterfly Pavilion through November 2031 without further Council approval. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading and Resolution. BACKGROUND / DISCUSSION The City has contracted with Butterfly Pavilion for butterfly house operations at The Gardens on Spring Creek since 2016. Butterfly Pavilion staff were instrumental in the design/build of the glass house to ensure it would meet United States Department of Agricultural (USDA) guidelines for butterfly flight house permitting. With the Butterfly House now fully operational, Butterfly Pavilion is responsible for obtaini ng the USDA permit and oversees compliance. Butterfly Pavilion provides 2.5 FTE staff to manage butterfly house operations including: butterfly purchases from sustainable butterfly farms, animal care, pest and disease monitoring, and guest experience activities. The contract between the City and the Butterfly Pavilion expired on November 15, 2021. This year is the fifth and final year of the current contract. A new contract is required pursuant to Code Sec. 8 -186 which limits multi-year contracts to five years. Adoption of this Resolution and Ordinance will allow this contractual relationship to continue. If Council approves the Resolution the parties intend to promptly execute a new contract that would be effective as of November 16, 2021, but made co ntingent on the Council’s approval of the Ordinance on second reading and such Ordinance taking effect on or before December 31, 2021. As part of its 2016 Contract, the Butterfly Pavilion required a non-compete clause that would prevent the City from continuing to operate a butterfly house for two years after the end of that contract if it was not renewed or Agenda Item 17 Item # 17 Page 2 extended. As part of proposed new contract Butterfly Pavilion has agreed that if the City renews the new contract at the end of the first five-year term for an additional five years, then, in recognition of this partnership, the non-compete covenant will terminate and no longer be enforceable against the City. CITY FINANCIAL IMPACTS The proposed contract contains a negotiated cost to the City for butt erfly operations in the amount of $192,474 paid in quarterly installments of $48,118.50. Funds for the contract are authorized in the 2022 budget. In each subsequent year of the Contract Term and any extension beyond the initial five year Contract Term th e Collaborator Compensation shall increase by two percent (2%) per year. The City can terminate the contract at any time if Council does not appropriate sufficient funds for butterfly operations in a subsequent budget year. -1- ORDINANCE NO. 160, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING A CONTRACT TERM OF UP TO TEN YEARS FOR BUTTERFLY HOUSE OPERATIONS BY ROCKY MOUNTAIN BUTTERFLY CONSORTIUM, DBA BUTTERFLY PAVILION WHEREAS, the City has contracted with Rocky Mountain Butterfly Consortium (“Butterfly Pavilion”) for butterfly house operations at The Gardens on Spring Creek since 2016; and WHEREAS, Butterfly Pavilion staff were instrumental in designing and building the glass butterfly house to ensure it would meet United States Department of Agricultural (“USDA”) guidelines for butterfly flight house permitting; and WHEREAS, Butterfly Pavilion is currently responsible for obtaining the required USDA permit and oversees compliance for the butterfly house; and WHEREAS, Butterfly Pavilion provides staff to manage butterfly house operations including: butterfly purchases from sustainable butterfly farms, animal care, pest and disease monitoring, and guest experience activities; and WHEREAS, the City entered into a five-year agreement with Butterfly Pavilion that will expire on November 15, 2021; and WHEREAS, the Purchasing Agent has determined that Butterfly Pavilion has performed butterfly house operations well and to the satisfaction of the City, and City staff recommends continuing to contract with Butterfly Pavilion for butterfly house operations; and WHEREAS, because Section 8-186(a) of the City Code requires that any contract for services with a potential total term over five years in length be authorized by the City Council by ordinance, the agreement with Butterfly Pavilion cannot be renewed without Council approval; and WHEREAS, the Purchasing Agent has further determined that to continue with the delivery of high-quality butterfly house operations, the execution of a new agreement with a term of up to 10 years beginning as of November 16, 2021, is advisable and would maintain the continuity in the delivery of those services; and WHEREAS, to maintain continuity of operations, the City intends to enter into a new agreement with Butterfly Pavilion as of November 16, 2021 that will be made contingent on this Ordinance becoming effective, following approval by the City Council on second reading, on or before December 31, 2021. NOW, THEREFORE, BE IT ORDAINED B Y THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -2- Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby authorizes the execution of an agreement between the City and Butterfly Pavilion for butterfly house operations at The Gardens on Spring Creek for a term of five years beginning as of November 16, 2021, with an option to extend the agreement to November 15, 2031, pursuant to Section 8-186(a) of the City Code. Introduced, considered favorably on first reading, and ordered published this 16th day of November, A.D. 2021 and to be presented for final passage on the 7th day of December, A.D. 2021. __________________________________ Mayor ATTEST: _____________________________ Interim City Clerk Passed and adopted on final reading on this 7th day of December, A.D. 2021. __________________________________ Mayor ATTEST: _____________________________ Interim City Clerk -1- RESOLUTION 2021-104 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AN EXCEPTION TO THE USE OF A COMPETITIVE PROCESS FOR BUTTERFLY HOUSE OPERATIONS BY ROCKY MOUNTAIN BUTTERFLY CONSORTIUM, DBA BUTTERFLY PAVILION WHEREAS, the City has contracted with Rocky Mountain Butterfly Consortium (“Butterfly Pavilion”) for butterfly house operations at The Gardens on Spring Creek (the “Gardens”) since 2016; and WHEREAS, Butterfly Pavilion staff were instrumental in designing and building the glass butterfly house at the Gardens to ensure it would meet United States Department of Agricultural (“USDA”) guidelines for butterfly flight house permitting; and WHEREAS, Butterfly Pavilion is currently responsible for obtaining the required USDA permit and oversees compliance for the butterfly house; and WHEREAS, Butterfly Pavilion provides staff to manage butterfly house operations including: butterfly purchases from sustainable butterfly farms, animal care, pest and disease monitoring, and guest experience activities; and WHEREAS, the City entered into a five-year agreement with Butterfly Pavilion that expired on November 15, 2021; and WHEREAS, the City Council is also considering an ordinance to allow the City to enter into an agreement with Butterfly Pavilion for butterfly house operations for five-years, with possible extensions for an additional five years; and WHEREAS, City Code Section 8-161(d)(1)(b) authorizes the Purchasing Agent to contract for services without competition if, although there exists more than one (1) responsible source, a competitive process cannot reasonably be used or, if used, will result in a substantially higher cost to the City, will otherwise injure the City's financial interests or will substantially impede the City's administrative functions or the delivery of services to the public; and WHEREAS, the Purchasing Agent has determined that the purchase of services from Butterfly Pavilion falls within the scope of this exception because, given Butterfly Pavilion’s specialized ability to manage butterfly house operations, the use of a competitive process to contract for such services at this time would injure the City’s financial interests and interfere with the delivery of services for the butterfly house at the Gardens; and WHEREAS, the Purchasing Agent has submitted the requisite justification to the Interim City Manager for approval; and WHEREAS, the Interim City Manager has reviewed and approved the justification for this acquisition; and -2- WHEREAS, City Code Section 8-161(d)(3) requires approval of this purchasing method by the City Council for items costing more than $200,000 prior to acquisition; and WHEREAS, the proposed contract with Butterfly Pavilion contains a negotiated cost to the City for butterfly house operations in the amount of $192,474 for the initial year of the contract, with compensation to Butterfly Pavilion increasing by two percent per year for each subsequent year of the contract term. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby approves, as an exception to the City’s competitive purchasing process, the purchase of butterfly house operations from Butterfly Pavilion as set forth herein. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 16th day of November, A.D. 2021. __________________________________ Mayor ATTEST: _____________________________ Interim City Clerk