Title
Recommendation to Authorize the City Manager to Execute an Amendment to the Agreement with the Friends of the Alameda Animal Shelter for Animal Shelter Operations to Clarify Payment Schedule for a Total 10-Year Compensation Not-to-Exceed $11,574,639. (City Manager 10021030)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
On July 20, 2021, the City Council approved a new agreement with the Friends of the Alameda Animal Shelter (FAAS) to operate the Alameda Animal Shelter (Shelter) and City Council approved expenditures for the first two years of the agreement, Fiscal Years (FY) 2021 - 2023 (File No. 2021-1068).
This amendment to the previously approved agreement is coming to City Council now because the original City Council action approved the total amount of the first two years of the agreement, but did not include the cumulative total of the full agreement. Funding for Shelter operations was included in the FY 2023 - 2025 budget approved on June 20, 2023. Staff recommends City Council approve the amendment to the agreement, which includes the same terms as the approved 2021 agreement, and approve the 10-year agreement compensation term in an amount not-to-exceed $11,574,639. City Council will approve future annual appropriations as part of the regular budget approval process.
BACKGROUND
Animal control shelters are regulated under the California Food and Agriculture Code and the California Civil and Penal codes. Those regulations mandate that city and county animal control shelters and/or its agencies provide care to animals housed in an animal control shelter to prevent spread of disease, to protect the animals, and protect the public good.
Prior to 2012, Alameda’s animal shelter and animal control services were managed by the City and operated by the Police Department. Following budget cuts during the recession, FAAS took over animal shelter services in 2012, with animal control remaining under the Police Department. In 2017, the City and FAAS renegotiated their contract to continue to provide this service to the community, including a lease between the City of Alameda (City) and FAAS for the building at 1590 Fortmann Way. Both the service agreement and the current lease agreement expired in July 2021. At that time, Council approved a new animal shelter operator agreement that included terms from the service agreement and lease, allowing FAAS to continue to provide animal shelter services at the current location.
FAAS has been an exemplary partner, providing a high level of service to the community, including operating the City’s animal shelter, working on citywide emergency planning, and reporting regularly to the City Council. During the pandemic, FAAS continued to provide a high level of service to the community and expanded its coordination with local non-profit organizations to provide services to assist unhoused and low-income residents. Since the 2021 Agreement was approved, FAAS has continued this high level of service, brought on a new mobile outreach and adoption center, continued their work on the Community Center in the Harbor Bay Business Park, opened Thrifty Kitty, a new thrift store on Webster Street, and renovated and reopened the animal shelter with new kennels, flooring, and parking lot.
DISCUSSION
On July 20, 2021, City Council approved a new Agreement with FAAS for Fiscal Years 2021-22 and 2022-23. While this was approved as a 10-year agreement, only the first two years of agreement compensation were approved and the total cumulative agreement compensation amount was inadvertently not included in the City Council approval. This amendment includes all previously City Council approved agreement terms and specifically details the annual compensation and total not-to-exceed agreement amount of $11,574,639.
Key terms from the 2021 agreement are included below, with the addition of the total 10-year compensation in an amount not-to-exceed $11,574,639:
• Compensation to FAAS: $997,818 in 2021, with an annual cost of living increase based on the Consumer Price Index, for a total compensation of $11,574,639 for 10 years, including an annual escalator of five percent. Detailed annual payments are further described in the Financial Impact section.
• Term: Two years, with up to four two-year extensions subject to review and approval by the City Manager.
• Scope of services: FAAS will continue to maintain animal shelter services for the community, including adhering to best practices regarding shelter admission and intake, care and welfare of animals, employee conduct, and operations. FAAS shall not euthanize any animal for time or space, and the average live release rate goal for dogs or cats will be 90% or higher.
• Staffing: FAAS will increase its current staffing. The Adoption and Foster Services Manager is a new position paid by the City. The Medical Director, Community Services Manager, two South Shore employees, and part-time thrift store employee are new positions paid by FAAS.
• Reporting: FAAS shall present an annual report to the City Council regarding the quantity and quality of services provided under the service agreement. FAAS shall also provide annual status reports to the City Manager. An annual financial audit will be conducted and posted on the FAAS website.
• Premises: 1590 Fortmann Way will continue to be used by FAAS, as it has been since 2011.
Surplus Lands Act
This transaction does not implicate the Surplus Lands Act because this transaction selects an operator (i.e., FAAS) to operate a City facility, namely an Animal Shelter. The transaction does not constitute disposition of agency property as defined by the SLA and its implementing regulations.
ALTERNATIVES
• Authorize the City Manager to execute an Amendment to the Agreement with FAAS, as recommended by staff.
• Direct staff to negotiate different terms to the Amendment to the Agreement. If this Amendment is not approved, the City will be unable to make its monthly payment to FAAS until new agreement terms are approved.
FINANCIAL IMPACT
The next two years of funding for the Agreement are included in the approved FY 2023 - 25 budgets in an amount not-to-exceed $2,259,490. The total 10-year agreement compensation is in an amount not-to-exceed $11,574,639, paid on a monthly reimbursement basis, subject to budget allocations. Annual compensation for FY 25-26 through the remainder of the agreement will be subject to future City Council approval.
|
FAAS Budget |
|
FY 21-22 |
$ 997,818 |
|
FY 22-23 |
$1,049,705 |
|
FY 23-24 |
$1,102,190 |
|
FY 24-25 |
$1,157,300 |
|
FY 25-26 |
$1,215,165 |
|
FY 26-27 |
$1,275,923 |
|
FY 27-28 |
$1,339,719 |
|
FY 28-29 |
$1,406,705 |
|
FY 29-30 |
$1,477,040 |
|
FY 30-31 |
$1,550,892 |
|
TOTAL |
$11,574,639 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to execute an amendment to the agreement with FAAS for animal shelter operations to clarify the payment schedule for a total 10-year compensation not-to-exceed $11,574,639.
Respectfully submitted,
Sarah Henry, Communications Director
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Amendment
2. Original Agreement