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REQUEST FOR COUNCIL ACTION 3/10/98 ITEM .: F-1 Department Approval: Manager Reviewed: Agenda section: • f : Reports and Recommendations Item Description: Contract for Social Services with Northwest Youth & Family Services. BACKGROUND The most recent draft of the,proposed contract for social services with Northwest Youth Family Services is attached for City Council consideration. This contract has been amended as a result of a meeting with ether communities and by actions by the Northwest Youth & Family Services Board of Directors. The key issues, which have been changed, include the following: Distribution of Assets Upon Dissolution—a concern was that Northwest Mouth Family Services could continue to operate but in some manner inconsistent with the current mission. The new language allows the City to ask for the Board to liquidate assets if Northwest Youth & Family Services deviates from its current mission as identified in this agreement (Part ll, Recitals, mart A.) Board of Directors--the language identifying the composition of the Board of Directors has been modified so that each city has a designated seat on the Board of Directors, with the limit of the Board of not more than 20 members. This language assures that cities will not have a majority vote of the Board of Directors, nor do cities necessarily have to select a member of the Board to fill their designated seat. POLICY OWE TIVEs The fundamental change represented by the "Contract" versus the previous "Joint Powers Agreements' is the degree of City control. As a Joint Powers agency, the City has had specific control of the agency. A contract suggests a much less specific degree of control and, in fact, a more arms lengthy AL contractual" relationship. discussion point has been ghat,.if any, control the City is giving up by going from a Joint Powers relationship to a contractual relationship. The equity owned by Northwest Youth Family Services is arguably an asset of the cities which compose the Joint Powers agency. Severing that relationship is an issue that should be considered carefully by City Council. In our discussions with other cities, the language directing Northwest Youth Family Services to its odginal mission as outlined in the Recitals and linking dissolution of the corporation to that mission is one way of establishing the long-range direction of the agency consistent with its role while under Joint Power Agreement control.