Title
Recommendation to Clarify that the Previously Approved Animal Shelter Operator Agreement with Friends of the Alameda Animal Shelter Includes an Annual Increase Based on the Percentage Change in the Consumer Price Index for a Total 10-Year Compensation Estimate of $11,574,639. (City Manager 10021030) [Continued from October 17, 2023]
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
On July 20, 2021, City Council approved an agreement with the Friends of the Alameda Animal Shelter (FAAS) to operate the Alameda Animal Shelter (Shelter) for an initial term of two years and an extension term for a total of up to ten years (File No. 2021-1068). This staff report is intended to clarify the total 10-year compensation in the approved 2021 Agreement as an estimated $11,574,639, including an annual increase based on the percentage change in the Consumer Price Index. Funding for Shelter operations for Fiscal Year (FY) 2023-24 and FY 2024-25 was included in the FY 2023-2025 budget approved on June 20, 2023. 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 of Alameda (City) and operated by the Alameda Police Department (APD). Following budget cuts during the recession, FAAS took over animal shelter services in 2012, with animal control remaining under APD. In 2017, the City and FAAS renegotiated their contract to continue to provide this service to the community, including a lease between the 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, City Council approved a new animal shelter operator agreement with FAAS 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. Even 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 by providing food and veterinary services at no cost. 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 an Agreement with FAAS for an initial term that included Fiscal Years 2021-22 and 2022-23 and an extension term of up to four two year extensions for a total of up to 10 years. Annual compensation for the first twelve months of the initial term was reimbursed in an amount not-to-exceed $997,818 for expenses identified in the FAAS budget. The Agreement states that this not-to-exceed amount of $997,818 shall, subject to City Council appropriation of adequate funds, be adjusted upward annually, effective as of the 13th month of the term, and for each year of the extension term, by the Bay Area Consumer Price Index (CPI) as published by the United States Department of Labor, Bureau of Labor Statistics. The Agreement, however, did not clarify an estimated amount assuming the Agreement is extended for the entire 10-year period. For purposes of clarification, the table below establishes that amount based on a five percent (5%) annual increase, which is an estimate of the percentage change in the CPI. If the percentage changes were less or more than that, the actual amount reimbursed would be less or more than the estimated amount in the table below. This agreement is funded for Fiscal Years 2023 - 25 and any future annual compensation would be subject to 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 |
ALTERNATIVES
• Accept clarification of the City Manager’s overall authority for the Animal Shelter Operator Agreement’s total 10-year compensation, as recommended by staff.
• Provide staff with an alternative direction.
FINANCIAL IMPACT
Funding for the Agreement is included in the approved FY 2023-25 budgets in an amount not-to-exceed $2,259,490. Annual compensation for FY 2025-26 through the remainder of the Agreement will be subject to future City Council budgetary approval and paid on a monthly reimbursement basis.
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
Clarify that the previously approved Animal Shelter Operator Agreement with FAAS includes annual increases based on the percentage change in the CPI for a total 10-year compensation estimate of $11,574,639.
Respectfully submitted,
Sarah Henry, Communications Director
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Animal Shelter Operator’s Agreement