Title
Recommendation to Authorize the City Manager to Execute a First Amendment to the Alameda Animal Shelter Services Agreement (Agreement Amendment) with Friends of the Alameda Animal Shelter (FAAS) for Animal Shelter Services Extending the Term by Two Years in an Amount not to Exceed $1,779,832, including a One-Time Expenditure of $50,000 in Fiscal Year (FY) 2019-20 for Additional Staff Support, for a Four-Year Total Compensation Not to Exceed $3,464,800, plus an Escalator in 2020-21 Based on the Bay Area Consumer Price Index; and
Introduction of Ordinance Approving a First Amendment to the Lease Agreement (Lease Agreement) and Authorizing the City Manager to Execute a First Amendment to the Lease Agreement with Friends of the Alameda Animal Shelter (FAAS) Extending the Term by Two Years with the Same Terms and Conditions, for the Facility located at 1590 Fortmann Way, Alameda, CA 94501. [Requires Four Affirmative Votes] (City Manager 2110)
Body
To: Honorable Mayor and Members of the City Council
From: Eric Levitt, City Manager
EXECUTIVE SUMMARY
In January 2012, FAAS took over the management of Alameda’s animal shelter from the City of Alameda (City). In early 2016, FAAS and the City renegotiated the Alameda Animal Shelter Services Agreement (Agreement) and on June 6, 2017, the City Council approved the Agreement with FAAS to provide animal shelter services, for an amount not to exceed $804,300 in Fiscal Year (FY) 2017-18, with an annual increase based on the Bay Area Consumer Price Index (CPI). At the same time, the City Council approved a Lease Agreement (Lease) with FAAS, which included $45,000 for capital improvements in FY 2017-18.
The Agreement Amendment t extends the term of the Agreement two years, with compensation not to exceed $1,810,104, including a one-time expenditure of $50,000 to hire a part-time veterinarian to offset increasing costs associated with outsourcing medical care. The Lease Amendment extends the term by two years at the same base rent to coincide with the Agreement Amendment.
BACKGROUND
Up until 2011, the Alameda Police Department provided all animal care and control services in the City.
In June 2011, the City Council approved its annual budget, which included steep spending cuts in all City departments in order to close a $7.5 million budget deficit. In an effort to manage the Alameda Police Department's $1.3 million budget reduction, operation of the Alameda Animal Shelter was to be outsourced to another community or nonprofit organization. At that time, FAAS expressed a strong interest in managing the shelter, and after several months of negotiations, the City and FAAS entered into a 15-year contract, starting in January 2012 (Exhibit 1). Key elements of that agreement included:
• FAAS pays the City $1 annually as rent;
• Starting in January 2012, the City provided FAAS with a base of $300,000 plus an annual escalator tied to the Bay Area Consumer Price Index to run the shelter. For FY 2016-17, the City contributed a total of $355,823 to FAAS;
• The City is responsible to maintain the building's roof, foundation, heating/ventilation/air conditioning systems, and electrical systems;
• FAAS is responsible for general maintenance of the building as well as janitorial services and some utilities;
• FAAS provides all of the general animal shelter services such as licensing of companion animals upon adoption, holding of strays and owner-surrendered animals, finding homes for animals within their care, and ensuring the provision of after-hours drop boxes;
• The Police Department is responsible for animal control, responding to stray animal calls, transporting animals to the facility, and field enforcement of animal control laws;
• FAAS is required to accept all companion animals and make a “reasonable effort” to find a new owner. They also have to use a “best effort” to avoid euthanasia; and
• FAAS has no requirement to accept live wild animals; however, they must accept dead animals to ensure the proper disposal of remains.
In early 2016, FAAS approached the City indicating they were having financial difficulties and needed additional funding to be sustainable as an organization and continue to provide the community with a high level of shelter services. On June 6, 2017, the City Council approved a two-year Agreement with FAAS for an amount not to exceed $804,300 in FY 2017-18 (Exhibit 2) with an escalator for the second year. At the same time, the City Council approved a two-year Lease with FAAS (Exhibit 3), which included $45,000 for capital improvements.
DISCUSSION
Since the Agreement and Lease were approved, FAAS continues to be an excellent community partner as they work to fulfill the scope of services outlined in the Agreement, including:
• Shelter Services: Sheltering abandoned, unwanted or stray animals, medical care, adoption of animals, pre-adoption spay and neuter of cats and dogs, licensing, and euthanasia of animals. All animals housed in the shelter shall be treated with care and provided a clean, comfortable, and healthy environment.
o Standards: Maintain and adhere to evolving best practice protocols regarding shelter admission and intake procedures, care and welfare of animals, employee conduct, and operations.
o Operational Assessment: In 2018, the City contracted with Team Shelter USA (Team Shelter), a national full-service animal welfare consulting firm helping funders, organizations and municipal leaders implement proven life-saving best practices, to conduct an operational assessment of the shelter and the services provided by FAAS pursuant to the 2017 Agreement. In early 2019, Team Shelter delivered an Operational Assessment Report to the City and FAAS. Working with the City, FAAS will implement recommendations outlined in the Operational Assessment Report, or explain why recommendations may not be appropriate for our community and this shelter.
o Hours: FAAS has agreed that the shelter shall be open to the public during the hours of 11:00 am to 5:00 pm, Thursdays through Sundays, and 11:00 am to 7:00 pm on Wednesdays.
• Animal Intake: Accept all animals that come into the custody of, or are impounded by, the City. FAAS shall accept all owner-surrendered animals from residents of the City. FAAS will operate the shelter as an “Open Intake” shelter, meaning that no animal will be turned away due to its species or breed. Dogs shall be accepted without breed-specific barriers.
• Animal Care: Policies and Procedures
o Assessment: Every animal entering the shelter shall be assessed in regard to physical condition, medical condition, medical needs, and behavioral observations. All dogs and cats are to be scanned for the presence of a microchip, and if found, FAAS shall promptly initiate a search for the owner through the microchip vendor.
o Vaccination: All animals shall be vaccinated, including intranasal Bordetella and DHPP for dogs and FVRCP for cats. Animals shall also be treated for fleas, intestinal parasites, and groomed as necessary for the animal’s health.
o Veterinary Services: Veterinary services to perform necessary medical treatments may be provided by off-site veterinarians. FAAS shall rotate such off-site referrals between and among available veterinarians in the City. (The Agreement Amendment includes $50,000 to hire a part-time veterinarian to help reduce these contractual costs in subsequent years.)
o Holding Requirements: Animals will be held in accordance to law and eligibility for adoption, transfer to other animal welfare agencies, or placement with a qualified rescue group.
o Quarantine: An animal that is dangerous or potentially carrying a highly infectious disease that may threaten the health and safety of other animals or humans will be accepted and placed into quarantine.
• Dead Animals: Accept custody of dead animals from animal control or from the community, and dispose of the same.
• Service Area: The shelter shall be operated to meet the animal services needs of the City.
• After-Hours Drop-Off Boxes: Maintain after-hours drop-off boxes and take custody of animals dropped off in such boxes.
• Euthanasia and Vivisection: FAAS shall not euthanize any animal for time or space, and shall make every effort to avoid euthanasia, unless medically necessary and/or behaviorally warranted for the safety of the public. An average live release rate for dogs and cats of 90% or higher shall remain the goal of FAAS.
• Adoption, Placement, or Transfer of Animals: Make every reasonable effort to identify each animal’s owner and return the animal to its owner prior to release of the animal through adoption, placement with a rescue group, or transfer to an animal welfare agency.
o Spayed/Neutered, Microchipped, and Licensed: As a condition for adoption, cats and dogs shall be spayed or neutered and microchipped. FAAS shall also require all cats and dogs, whether released to their prior owners or released for adoption, to be licensed in accordance with City policies and procedures.
o Adoption Outreach: Adoption shall be promoted through a variety of outreach strategies including advertising, online, mobile, and off-site events.
• Community Partnership and Involvement: Partnerships with community groups, veterinary service providers, other animal welfare agencies, and rescue agencies may be developed and maintained by the FAAS.
o Volunteer Program: Maintain an active volunteer program. Participation in the program will be encouraged, and recruitment, screening, training, and retention of fostering, shelter, and adoption volunteers will be provided by FAAS.
o Alameda Point Collaborative (APC): Use good faith efforts to employ two (2) full or part-time employees who live in the collaborative. Currently, FAAS has one position filled by an APC resident, and will continue to conduct outreach to APC residents when positions are open.
As specified in the Agreement, FAAS provides the City with regular reports (Exhibits 4-6) on their activities and disposition of animals, including:
• Number of impounded animals received from animal code enforcement and field services;
• Number of stray animals accepted from residents of the City;
• Number of animals returned to owners;
• Number of animals adopted;
• Number of animals transferred out of the Alameda Animal Shelter to other animal welfare agencies or placed with rescue groups;
• Number of animals that are stolen;
• Number of animals that are dead upon arrival;
• Number of animals that died while in care of the shelter;
• Number of animals that are euthanized and the reason for euthanasia;
• Live release rate;
• Number of volunteer hours contributed;
• Progress on implementing Operations Assessment Report;
• Amount of animal license fees collected;
• Number of grants applied for and amount of grant money received;
• Summary of donations received; and
• Quarterly income statements, balance sheets, cash flow statements, and budget to actual reports, prepared in accordance with generally accepted accounting principles.
On October 16, 2018, FAAS Executive Director John Lipp, presented an annual report to the City Council (Exhibit 7) showcasing how FAAS continues to be proactive in their efforts to shelter animals, including:
• South Shore Holiday Pop-Up: In December 2018, FAAS opened up a Holiday Pop-Up Adoption Center at South Shore. Adoptions increased by 28% over the previous December and thousands of people came to the store to meet FAAS animals or attend one of several special events hosted at the space.
• FAAS to Open Permanent South Shore Adoption Center: Following the success of the Holiday Pop-Up, FAAS has signed an agreement with South Shore to open a permanent Adoption Center at the same location. With an anticipated opening of early June, the privately funded satellite location will include professionally designed window and store displays showcasing adoptable shelter cats and rabbits, monthly dog adoption fairs in the open courtyard, special events to welcome the community, and a conference and training room for pet loss support groups, education seminars, and activities for youth organizations.
• North Loop Project at Harbor Bay: Launched with the donation of a ½ acre parcel at the Harbor Bay Business Park in 2018, FAAS is in the design review process for a Community Center campaign to broaden their humane education and adoption programs.
• New Spay/Neuter Program: Through an innovative partnership with East Bay SPCA, FAAS is now performing their own spay/neuter (S/N) surgeries at the SPCA surgery center on Hegenberger in Oakland. This allows FAAS to alter a larger number of animals in a shorter time period, thereby increasing efficacy and reducing length of stay.
The Agreement Amendment (Exhibit 8) extends the term two years and increases the compensation in an amount not to exceed $914,916 in FY 2019-20. There is an escalator based on CPI for the compensation for FY 2020-21. The Agreement includes a one-time payment of $50,000 in 2019-20 to hire a part-time veterinarian in order to offset increasing costs associated with the outsourcing of medical care for shelter animals. Excluding Spay/Neuter surgeries, in FY 2017-18 FAAS spent $104,000 on outside vet services. These costs were funded through the City contract for standard vet care and lab services and through private donations for animals requiring medical care outside the standard of care for community shelters.
Veterinary costs for FY 2018-19 are projected to be similar to FY 2017-18. Although FAAS will always need to outsource lab services and specialists, the majority of required care (wellness exams, vaccinations including rabies, diagnosis, etc.) could be more efficiently handled in-house, eventually reducing costs and increasing the quality of care and outcomes. Given that FAAS invoices the City on a monthly basis for actual costs, it is likely the City will see an immediate benefit to this cost-shifting model. By adding $50,000 in FY 2019-20 to the contract extension for a part-time staff position, FAAS will be in a position to make this a sustainable model without adversely risking access to outside medical services during the transition period.
The Lease Amendment (Exhibit 9) extends the term by two years at the same terms and conditions.
FINANCIAL IMPACT
The first year operating annual cost of this Agreement Amendment is an amount not to exceed $864,916, paid on a reimbursement basis, plus $50,000 for staffing in FY 2019-20 only. Staff will budget total expenditures of $914,916 in the upcoming FY 2019-20 budget and $864,916 plus an annual CPI increase in the FY 2020-21 budget. Licensing revenues are estimated to help offset a portion of these costs.
|
Fiscal Year Contract |
CPI |
Authorized Amount |
Expended to Date |
Agreement Amendment |
|
2017-18 |
|
$804,300 |
$778,290 |
|
|
2017-18 One-time expenditure |
|
$45,000 |
$45,000 |
|
|
2018-19 |
3.9% |
$835,668 |
$619,948 |
|
|
2019-20 Proposed |
|
$864,916 |
|
$864,916 |
|
2019-20 One-time expenditure |
|
$50,000 |
|
$50,000 |
|
2020-21 Proposed |
(Est. 3.5%) |
$864,916 + CPI |
|
$864,916 + CPI |
|
Total (without 2020-21 CPI increase) |
|
$3,464,800 |
$1,443,238 |
1,779,832 + CPI |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
ENVIRONMENTAL REVIEW
This action is not subject to environmental review as the activity is not a "project" for purposes of the California Environmental Quality Act (CEQA) because it is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment. CEQA Guidelines, section 15378(b)(5).
RECOMMENDATION
1) Authorize the City Manager to execute a first amendment to the Alameda Animal Shelter Services Agreement (Agreement Amendment) with Friends of the Alameda Animal Shelter (FAAS) for animal shelter services extending the term by two years in an Amount not to exceed $1,779,832, including a one-time expenditure of $50,000 in Fiscal Year (FY) 2019-20 for additional staff support, for a four-year total compensation not to exceed $3,495,072, plus an escalator in 2020-21 based on the Bay Area Consumer Price Index; and
2) Introduction of Ordinance approving a first amendment to the Lease Agreement (Lease Agreement) and authorizing the City Manager to execute a first amendment to the Lease Agreement with Friends of the Alameda Animal Shelter (FAAS) extending the term by two years with the same terms and conditions, for the facility located at 1590 Fortmann Way, Alameda, CA 94501.
Respectfully submitted,
Sarah Henry, Public Information Officer
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits
1. 2011 Lease Agreement
2. 2017 Services Agreement
3. 2017 Lease Agreement
4. 2017-18 Annual Report
5. 2018-19 Mid-Year Report
6. FAAS Audited Financial Statements
7. FAAS 2018 Presentation to City Council
8. 2019 Contract Amendment
9. 2019 Lease Amendment