Title
Recommendation to Authorize the City Manager to Execute a First Amendment to the Animal Shelter Operator Agreement with the Friends of the Alameda Animal Shelter, increasing Compensation for Services by $186,000 for a Total Agreement Amount Not-to-Exceed $11,760,639 over the 10-Year Term, due to a Significant Increase in Animal Intakes Causing Costs for Staff and Medical Care to Increase. (City Manager 10021030)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
For Fiscal Year (FY) 2023-24 Fiscal Year, the City of Alameda’s (City) contract with the Friends of the Alameda Animal Shelter (FAAS) did not keep pace with the true costs for core, state-mandated Animal Care services primarily due to an increase in animal intakes resulting in the need for additional animal care staffing. The annual intake of total animals increased 37% from 462 in FY 2021-22 to 632 animals in FY 2022-23 and increased an additional 16% to 733 animals in FY 2023-24. Despite the significant increase in the number of animals, FAAS continued to provide a high level of care, maintaining an average live release rate of over 96%. Staff recommends increasing compensation to FAAS by $186,000 to cover the actual costs for these core, Animal Care services that are state mandated for the City to provide.
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.
On July 20, 2021, City Council approved an Animal Shelter Operator Agreement (Agreement) with 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 <https://alameda.legistar.com/LegislationDetail.aspx?ID=5026080&GUID=C3D598F9-AD7D-4A0C-BCDD-D95ED576DDA7&Options=ID|Text|&Search=2021-1068>). On November 7, 2023, City Council approved a clarification of the previously approved Agreement, detailing that the Agreement includes an annual increase based on the percentage change in the Consumer Price Index (CPI) for a total 10-year compensation estimate of $11,574,639 (File No. 2023-3451 <https://alameda.legistar.com/LegislationDetail.aspx?ID=6374135&GUID=7E382068-9EAF-4217-BB3C-95B65FE3F2C1>).
Funding for Shelter operations for FY 2023-24 and FY 2024-25 was included in the FYs 2023-2025 Biennial Operating Budget approved on June 20, 2023. City Council will approve future annual appropriations as part of the regular budget approval process.
DISCUSSION
The biggest variable in managing an open-intake animal shelter is the number of animals coming into the shelter, the physical status of those animals and the staffing levels required to care for those animals. The FY 2023-24 FAAS budget (Exhibit 4) did not keep pace with the actual costs for core, state-mandated services and includes a 14.4% deficit ($185,544), despite the annual cost of living adjustment (COLA) per the agreement.
This is primarily the result the significant increase in the number of incoming animals and the condition of those animals. The increase of incoming animals - a 16% increase over the previous year and an increase of 37% over the same period just two years ago, requiring additional animal care staffing (Exhibit 3). The condition of the animals coming into the shelter are more significant, both behaviorally and medically, which also requires additional veterinarian and other staffing and operational costs.
FAAS continues to privately fundraise and significantly leverage public support to sustain innovative programs that help keep people and their pets stay together (and out of the shelter) and provides exceptional care and positive outcomes for the Alameda community’s lost, homeless, and abandoned animals. These prevention-based programs save the City money by keeping animals out of the shelter system.
In addition, FAAS will be opening a privately-funded Animal Medical Services & Training Campus and hiring of a Full Time Shelter Veterinarian that will help off-set rising costs of care by bringing these critically needed services in-house. Additional information on the program is available at www.alamedaanimalshelter.org/about/fams <http://www.alamedaanimalshelter.org/about/fams>.
For these reasons, FAAS is requesting one-time funding in the amount of $186,000 to offset a deficit caused by an increase in intake and the need for additional staff and medical services. The funding is available in the City Manager’s Office and Non-Departmental budgets for FY 2023-24 from the General Fund. Staff will coordinate closely with FAAS to forecast upcoming annual budgets and if any additional changes are required, bring those as part of the FY 2025-27 Biennial Budget.
ALTERNATIVES
• Authorize the City Manager to execute a First Amendment to the Agreement with FAAS.
• Do not authorize the First Amendment and provide staff with 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. Staff will use existing budget to fund the additional compensation needed to continue to provide core animal services. No additional appropriations are needed.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents. This action relates to the Strategic Plan Priority to Enhance Community Safety and Services. This action is subject to the Levine Act.
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 a First Amendment to the Animal Shelter Operator Agreement with FAAS, increasing compensation for services $186,000 to a total agreement amount not-to-exceed $11,760,639 over the 10-year term, due to a significant increase in animal intakes causing costs for staff and medical care to increase.
Respectfully submitted,
Sarah Henry, Communications Director
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Animal Shelter Operator’s Agreement
2. Contract Amendment
3. Intake table
4. Budget changes and notes