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Report regarding proposed changes in services and programs to the City; and 2. Establish a fair and open bidding/request for proposal (RFP) process to contract, manage or provide such services and programs, which are not directly provided by NYFS staff. D. Fundinq In addition to the participating municipalities share of the annual budget, funds for the operation of NYFS will be raised by NYFS endeavoring to secure user fees, grants and appropriations from private organizations, the State of Minnesota, Federal and County agencies, and other legal and appropriate sources. 2. The City shall pay annually to NYFS the base amount listed in Exhibit A. This base amount will be adjusted annually for inflation/deflation using the Standard Metropolitan Statistical Area Consumer Price Index for All Urban Consumers (CPI-U). Such adjustment shall not exceed plus or minus 3% in any year. Any adjustment in the payment beyond those indicated by reference to the CPI-U shall require approval of each of the participating municipalities. 3. Amounts payable by the City shall be paid to NYFS on or before January 30, of each year to cover the City's share for that year. E. Board of Directors. This agreement is contingent upon the City having a designated seat on the Board of Directors. The Board of Directors shall be limited to not more than 24 Board members. F. Further Obliqations of NYFS. In addition to the obligations set forth elsewhere in this Agreement, this Agreement is further contingent upon NYFS doing the following: The Bylaws of NYFS shall be amended to add provisions requiring an open process for contracting services as provided for in paragraph C.2., above, and prohibiting NYFS from supporting or opposing individual candidates for election to public office in any of the participating municipalities; and adding the requirement that IRS 501.C3 status be maintained. 2. On or before June 30, of any year NYFS shall submit the proposed city budgeted amount for the subsequent year.