HomeMy Public PortalAbout12) 10A Agreement with San Gabriel Valley Humane SocietyAGENDA
ITEM 1 O.A.
COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
DATE: June 4, 2019
TO: The Honorable City Council
FROM: Bryan Cook, City Manager
By : Michael D. Forbes, Community Development Director
SUBJECT: APPROVAL OF AGREEMENT WITH THE SAN GABRIEL VALLEY
\ .HUMANE SOCIETY FOR ANIMAL CONTROL, SHELTER, AND
LICENSING SERVICES
RECOMMENDATION:
1. Approve a new agreement between the City of Temple City and the San Gabriel
Valley Humane Society (SGVHS) for animal control, shelter, and licensing services
for Fiscal Year (FY) 2019-20 (Attachment "A"); and
2. Authorize the City Manager to execute the agreement.
BACKGROUND:
1. On June 7 , 2016 , the City Council approved an agreement with SGVHS for animal
control, shelter, and licensing services . The agreement provides for an initial three-
year term ending June 30, 2019. The agreement automatically renews annually
thereafter for a maximum of five years through June 30 , 2024, unless SGVHS or the
City provides notice of intent not to renew the agreement at least 90 days prior to
the end of the term .
2. On March 15 , 2019 , SGVHS provided written notice that they would not renew the
agreement under the existing terms and requested a new agreement with an annual
fee of $252,000 (Attachment "B").
3 . On April 2, 2019, the City Council directed staff to negotiate a new agreement with
SGVHS.
City Council
June 4, 2019
Page 2 of 3
ANALYSIS:
The existing agreement provided an initial monthly rate of $15,208 for all animal control,
shelter, and licensing services starting in FY 2016-17, with an automatic annual increase
of four percent. After two annual increases, the monthly rate for FY 2018-19 is
$16,448.97. If the existing agreement were renewed for another year, the monthly rate
would increase to $17,106.93 for FY 2019-20.
SGVHS states in their letter that the contracted services cannot be sustained under the
current rate structure due to continuing increases in the minimum wage, increases in the
cost of providing animal care, and costs to maintain SGVHS's aging facility and vehicles.
To cover the costs of providing services under the agreement, SGVHS is seeking a
monthly rate of $21,000 for FY 2019-20. This represents an increase of about 28 percent
over the current rate and is about 23 percent above next year's rate under the existing
agreement. Rather than commit to another multi-year agreement with automatic
increases, SGVHS is requesting to commit to an annual agreement and renegotiate the
rates each year due to continuing cost increases.
Due to the significant increase in the requested rate, staff met with SGVHS and requested
additional information about their finances to justify the requested increase. SGVHS
provided audited financial statements for calendar years 2015 and 2016; statements for
2017 and 2018 are not yet completed. SGVHS provided the following information about
their recent and current financial situation to justify the requested increase:
• SGVHS relies on three sources of income: 1) service fees paid by cities (currently
Temple City and San Gabriel); 2) fees paid by the public for animal adoptions,
vaccinations, and surgical sterilization; and 3) grants, donations, and bequests.
• Grants, donations, and bequests are inconsistent and vary widely from year to
year. As such they cannot be reliably depended upon to fund operations.
• While SGVHS has dedicated volunteers that support it, the volunteers perform
important but non-essential tasks such as walking and grooming the animals.
Volunteers do not provide basic essential services such as animal control, medical
care, feeding, or waste cleanup. SGVHS must rely upon paid employees to ensure
that these basic functions are consistently provided.
• Total operating expenses for calendar 2018 were about $995,000 of which about
$680,000 (68 percent) was employee compensation.
• Due primarily to increases in the minimum wage, employee compensation
increased from 63 percent of expenses in 2014 to 68 percent in 2018 and is
estimated to increase to 72 percent for 2019.
City Council
June 4, 2019
Page 3 of 3
• For 2019, service fees paid by cities (assuming increased fees as requested) are
estimated to cover only 56 percent of employee compensation and 40 percent of
total expenses, with the remainder covered by service fees paid by the public and
donations.
• The total expenses each year are for operations and maintenance only, and do not
include any facility upgrades or capital purchases such as new vehicles, both of
which are needed.
At the City Council's request, staff brainstormed with SGVHS to try to find any additional
services that could be offered as part of the new contract. While nothing specific was
identified, SGVHS noted that their low-cost vaccination and microchipping clinic was
recently expanded from three days to five days per week, adding convenience for the
public. One likely reason for decreased attendance at the annual July clinic is that the
same services are now offered regularly and conveniently throughout the year, from 2
p.m. to 4 p.m. Tuesday through Saturday.
SGVHS is requesting to be compensated at a rate to cover its actual expenses. While the
requested increase is significant, the above information demonstrates that it is necessary
to pay for the level of service that Temple City expects and receives. The fees requested
by SGVHS are comparable to the fees charged by the County of Los Angeles for FY
2018-19 which are expected to increase for FY 2019-20. The fees are therefore lower
than what the City would pay for FY 2019-20 to contract with the County of Los Angeles
for animal control and shelter services. SGVHS has the additional advantage of being
located nearby, which provides an added convenience for residents and allows SGVHS
to provide prompt and responsive service to Temple City.
CITY STRATEGIC GOALS:
The City's agreement with SGVHS furthers the City Strategic Goals of Public Health and
Safety and Quality of Life by ensuring that the City will continue providing animal control,
shelter, and licensing services for the community.
FISCAL IMPACT:
The proposed FY 2019-20 City Budget includes $252,000 to cover the new monthly fee of
$21,000.
ATTACHMENTS:
A. New Agreement with SGVHS
B. Letter from SGVHS dated March 15,2019
ATTACHMENT A
CITY OF TEMPLE CITY AGREEMENT FOR ANIMAL CARE AND CONTROL
CONTRACT SERVICES
This Agreement is entered into this 41h day of June, 2019 between the CITY OF TEMPLE CITY herein
called "City", and the SAN GABRIEL VALLEY HUMANE SOCIETY, a non-profit cmporation,
hereafter referred to as "Humane Society."
WITNESSETH
The Humane Society agrees as an independent contractor to provide comprehensive animal care, control
and sheltering, and licensing services in support of the City's programs and activities specified in the
terms, conditions and special provisions of this contract.
SECTION I
TERM OF CONTRACT
This Agreement shall become effective July I, 2019, and shall continue until June 30,2020.
SECTION II
ANIMAL SHELTER SERVICES
A. Humane Society shall maintain humane and sanitary shelter facilities suitable for the
impoundment of all animals which may come into its custody from the City and Humane Society
shall make provision for receipt of these animals on a 24 hour, seven days a week basis. Humane
Society's shelter shall be located at 851 East Grand A venue, San Gabriel, California. Humane
Society shall maintain public office hours from 8:00 a.m. to 5:00 p.m., from Tuesday through
Sunday and be closed Monday each week and kennels shall be open to public visitation from
10:00 a.m. to 4:30 p.m., on its days of operation. Humane Society's offices are closed on
Mondays and specified holidays.
Animals impounded for the City shall be held for adoption or redemption, by the owner or
animal's custodian, for the minimum period of time specified by ordinance of the City, provided
that no designated holding period shall be less than that provided by state law for the animal
concerned. Humane Society reserves the right to humanely euthanize any impounded, diseased
or injured animal prior to the expiration of the holding period upon the recommendation of a
licensed veterinarian and in accordance with state law. All animals held in excess of the
minimum period specified above shall become the responsibility of Humane Society and the City
shall have no fmiher responsibility for such animal.
B. In the absence of written instructions from City to the contrary, Humane Society will accept stray
animals found by private citizens within the City's boundaries, and be responsible for the
collection, care and disposition of all animals voluntarily relinquished by their owners who reside
in the City of Temple City.
Agreement for Animal Care/Control Services
Page 2
C. Humane Society may charge a reasonable fee for the acceptance of animals voluntarily
relinquished by owners residing in the City, which fee shall be collected from the animal owner
and become the property of Humane Society. Humane Society shall not refuse to accept a City
pet owner sutTendering his/her animals; provided that the owner agrees to pay for the Humane
Society's keeping until its adoption or euthanasia. Humane Society shall not be required to
euthanize an adoptable animal that is relinquished by its owner. Humane Society shall not be
required to place any animal for adoption that Humane Society determines is not suitable for
adoption in accordance with state law.
D. Humane Society shall not release any animal for the purposes of medical research or vivisection.
SECTION III
FIELD SERVICES
A. Humane Society shall provide animal control services to City. Said services shall include, the
investigation of complaints regarding violations of the City's ordinances and state law; the
collection of dead animals; and the capture of any stray, diseased, injured or vicious animal
excluding large dead animals and dead animals on freeways. Humane Society shall take calls
directly from City's citizens during normal public business hours. Humane Society shall respond
to calls from authorized personnel of the City, including Los Angeles County Sheriff's
Department, on a 24 hour/7 day per week basis.
B. Humane Society will prioritize and respond to all calls for service as follows:
• Emergent Public Safety Calls (immediate risk to public safety and/or an animal). Examples
include: loose vicious animal, animal in traffic, animal endangennent.
• Non-Emergent Public Safety Calls (no immediate risk to public safety and/or an animal).
Examples include: stray (non-vicious) animal, animal confined by reporting party, deceased
animal on public or private property, leash law violations, barking dog complaints.
SECTION IV
INCIDENTAL COSTS AND SERVICES
In addition to the shelter services, field services, and licensing services as outlined in Sections
II, III and V, Humane Society may provide other services to the City, and charge costs for these
services, as agreed upon in advance by the City.
SECTIONV
ANIMAL LICENSING SERVICES
A. Humane Society shall administer City's dog licensing program in compliance with City
Municipal Code requirements and City established dog license fees.
B. Humane Society shall receive and process dog license applications from City residents.
Agreement for Animal Care/Control Services
Page 3
C. Humane Society shall mail renewal letters annually and shall receive and process renewals.
Humane Society shall issue (and mail as necessary) all dog license documents and license tags.
License tags will be issued for the life of the dog.
D. Humane Society shall respond to and investigate reports of unlicensed dogs. Humane Society
shall be responsible for initial follow-up and efforts to license such dogs and shall work with City
to detem1ine the appropriate course of enforcement action if needed.
E. Humane Society shall be the custodian of dog license applications, fonns and related documents
(considered to be public records) and shall maintain such records in a manner consistent with
City's records retention schedule. Humane Society shall organize and maintain records by year
and shall provide records to City when scheduled for destruction.
F. Humane Society shall remit to City a!! license fees collected on a quarterly basis. Fees collected
during each quarter shall be remitted to City within thi1ty (30) days following the end of each
quarter.
G. Humane Society agrees to provide one ( 1) animal licensing and low cost microchip clinic for the
City at San Gabriel Valley Humane Society, 851 E Grand Avenue, San Gabriel, California at no
cost to the City.
SECTION VI
COMPENSATION
A. City shall pay Humane Society a lump sum of $21,000 per month for all services described in
Section II, Animal Shelter Services, Section III, Field Services, and Section V, Animal Licensing
Services, due and payable in accordance with Section VI, C.
B. During the term of this contract, City agrees to compensate Humane Society for all payments
due.
C. Humane Society shall invoice City quarterly in advance on the first day of each quarter for
Service. City shall pay for each quarter's service within thi1ty (30) days after receipt of said
invoice. Said amount shall fully compensate Humane Society for all service provided for City as
constituted on the effective date of this Agreement and shall include complete shelter and field
services for all stray animals, excluding any animals impounded for quarantine or evidence
purposes.
D. Humane Society may at its discretion impose reasonable fees upon animal owners for the care
and feeding of an animal impounded and/or held in quarantine. All stray animal owner or
guardian redemption fees are to be kept by the Humane Society. Intake Vaccinations, Rabies,
Microchip and Unaltered Fee are also charged if administered.
E. Humane Society may at its discretion impose reasonable fees on City residents for the removal
of deceased domestic animals from private property and other animal related services requested
by residents at their property.
Agreement for Animal Care/Control Services
Page 4
F. Shelter services for animals held in quarantine or for animals held as evidence at request of
City/County prosecuting attorney or city law enforcement officer and for animals held longer
than four days pursuant to any applicable city ordinance or state law, shall be billed to City within
30 days of receipt of an itemized invoice provided by Humane Society. The rates established
may be adjusted upon mutual written consent by both City and Humane Society. (Rates: $30.00
Impound fee, $15.00 per day Board)
SECTION VII
EQUIPMENT, SUPPLIES AND PERSONNEL
A. Humane Society shall provide, at its own cost, all facilities, equipment, vehicles, supplies and
personnel necessary to perform the services in Section II, Animal Shelter Services, Section Ill,
Field Services, and Section V, Animal Licensing Services, to be furnished by Humane Society
under the terms and conditions of this Agreement.
SECTION VIII
HUMANE EDUCATION SERVICES
Humane Society shall make available, upon request of City educational materials designed to promote
humane education. Such materials shall be provided at no cost to City.
SECTION IX
PUBLIC HEALTH RESPONSIBILITIES
A. Humane Society shall conduct one (!) low-cost microchip clinic to provide City residents a
reasonable opportunity to secure low cost microchips. (As defined in Section V.)
B. Humane Society agrees to cooperate with public health authorities in enforcing the provisions of
the California Health and Safety Code relating to biting dogs and animals suspected of being
infected with the rabies virus.
SECTION X
SOCIETY EMPLOYEE STATUS
A. All persons employed by Humane Society for the performance of services to be provided
pursuant to the terms and conditions of this Agreement shall be employees or agents of Humane
Society. City shall not be called upon to assume any liability for the direct payment of any
salaries, wages or other compensation to any Humane Society personnel perfonning such
services for City, nor shall City be called upon to pay any liability other than as provided for in
this Agreement. Notwithstanding the foregoing, it is agreed that City shall have the full
cooperation of Humane Society's officers, agents and employees and Humane Society shall have
the full cooperation of City and of the officers, agents and employees of City in the performance
and evaluation of the services.
Agreement for Animal Care/Control Services
Page 5
SECTION XI
INSURANCE AND LIABILITY
A. Humane Society will defend, indemnify, and save harmless City from all demands, claims,
causes, or action, or judgments and from all expenses that may be incurred in investigating the
same, arising from, or growing out of, any act or omission of Humane Society, its contractors,
agents or employees, in connection with the operation of Humane Society's shelter, or in the
performance of related duties under this Agreement. Humane Society shall fully inform all
persons using or being upon Humane Society's premises or conducting business at such location
of the non-liability of City for any act or neglect of Humane Society, by posting an adequate
number of notices to that effect in, about, or on said premises.
B. Humane Society's indemnification under this Agreement does not extend to liabilities, losses,
claims, demands, actions, causes of action, proceedings, suits, damages, judgements, costs and
expenses of litigation, including attorney's fees, which Indemnitee may suffer or incur or which
Indemnitee may become subject to by reason or of arising out of any injury to or death of any
person(s), damage to property, or loss of use of property caused by the active or passive
negligence or willful acts or omissions of City, its elected and appointed officials, officers, agents,
employees, volunteers or representatives.
C. Humane Society shall at its own cost and expense secure and maintain the following Insurance
coverage and provide copies of its most current coverage/documents all of the following:
1. Comprehensive general liability coverage, including vehicle insurance, in an amount no
less than $1,000,000 combined single limit per occurrence, $2,000,000 general aggregate.
2. Said policy shall name the City of Temple City, its elected and appointed officers,
officials, employees, agents and volunteers as additional insureds with regard to damages
and defense of claims arising from (I) activities performed by or on behalf of the Humane
Society; (2) completed operations of the Humane Society, of (3) premises owned, leased
or used by Humane Society.
3. Insurance shall be placed with insurers which are admitted in the State of Califomia and
have a cu!1'ent A.M. best rating of no less than A; VII.
4. Said policy shall bear an endorsement and have attached a rider whereby it is provided
that, in the event of expiration, cancellation or modification of such policy for any reason
whatsoever, the City shall be notified by registered mail, postage prepaid, return receipt
requested, not less than thirty (30) days before the expiration, cancellation or modification
is effective.
5. The Humane Society shall file a Certificate of Liability Insurance and original
endorsements affecting coverage required by this section with the City.
6. Proof of Worker's Compensation coverage shall be maintained as required by the State
of Califomia and provided to the City prior to the execution of this contract.
7. City shall defend, indemnify and save Humane Society harmless from all demands,
claims, causes of action, or judgments, and from all expenses that may be incurred in
Agreement for Animal Care/Control Services
Page 6
investigating or resisting the same, arising from, or growing out of, any act or neglect of
the City its contractors, agents or servants in connection with the performance of the
provisions of this Agreement.
SECTION XII
RECORDS MANAGEMENT AND FINANCIAL ACCOUNTING
A. Humane Society agrees to develop and maintain a comprehensive records management system
and provide City with such records relating to the services perfonned under this Agreement. All
records shall be in a form acceptable to City. All Humane Society records relating to services
provided or work performed pursuant to this Agreement, including all financial, managerial and
operation records, shall be made readily available for inspection by City representatives at all
reasonable times following a request by the City. If costs are incurred during compliance with a
City request to inspect records or books, such costs shall be documented by Humane Society and
reimbursed to Humane Society by City upon request by Humane Society.
B. Humane Society shall comply with information access provisions in accordance with all
applicable non-profit corporation requirements as stipulated by the State of California.
C. Humane Society shall be responsible for the preparation and submittal of all invoices and related
financial documents for services provided. Society shall fully cooperate with City regarding the
methodology and processes required for the appropriate preparation of all financial documents
as determined by City. Humane Society shall submit invoices as defined in Section VI.
SECTION XIII
CONTRACT ADMINISTRATION
A. Humane Society shall provide, upon request by City, reports showing the number and species of
animals impounded or received from the City. Additional field services impound data shall be
provided to City upon request.
B. Humane Society and City shall attend meetings as requested by either party to discuss operations
and activities within the scope of this Agreement.
SECTION XIV
LEGAL
A. In the event this Agreement should be challenged by suit filed by a non-party hereto, and in the
event City, in its sole discretion, determines to defend said suit, City shall defend this Agreement
at no expense to Society.
B. In the event that litigation is required to enforce or interpret the provisions of this Agreement, the
prevailing party shall be entitled to reasonable attorney's fees.
Agreement for Animal Care/Control Services
Page 7
SECTION XV
ASSIGNMENT
A. Humane Society shall not have the right, or power to sell, mortgage or assign this Agreement or
the powers granted to it or any interest therein.
SECTION XVI
MERGER
A. This Agreement represents the entire understanding between the parties hereto and supersedes
any and all prior written or oral agreements or understanding between the pmiies.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement.
APPROVED AS TO FORM
City Attorney
Date: ________ _
CITY OF TEMPLE CITY
City Manager
Date: ___________ _
SAN GABRIEL VALLEY HUMANE
SOCIETY
Board President
Date: ___________ _
March 15, 2019
Mr. Michael D. Forbes, AICP
Community Development Director
City of Temple City
9701 Las Tunas Dr.
Temple City, CA 91780
Dear Michael,
ATTACHMENT 8
San Gabriel Valley Humane Society ("SGVHS") is proud to serve the City of Temple City and all its
residents. As a community shelter, we very much value the partnerships we have built and are
continuing to build with the cities in our area. As we enter our 95'" year, we look forward to many more
years of service!
Our existing contract for animal control and sheltering services began in June 2016. The contract
provides for a 4% compensation increase annually through June 30, 2024. As we recently discussed,
SGVHS cannot sustain contract services without a more significant increase effective July 1, 2019.
SGVHS proposes that we amend the contract to allow for annual increases at a rate mutually agreed
upon each year.
Consistent with this approach, SGVHS respectfully requests an increase in annual compensation from
$197,388 (for the period from July l, 2018-June 30, 2019) to $252,000 (for the period from July 1, 2019
-June 30, 2020). a 28% increase. This increase is necessitated by the continuing increases in the
California minimum wage, increases in the cost of caring for the animals entering our shelter
(vaccinations, food, litter, etc.) and the costs to maintain our aging facility and animal control vehicles.
I will be more than happy to meet with you and other City representatives to discuss the need for this
increase and review our financial statements and facility needs. Please note that as SGVHS has gross
revenues well under $2,000,000 per year it is not required to have an audit. (California Government
Code section 12586(e)(1)) However, in order to provide transparency, we do have an independent CPA
conduct a review of our financials every two years. I can currently provide the financial review for the
2015 and 2016 calendar years. The review for the 2017 and 2018 calendar years will not be completed
until later this spring. But I can provide our internal financials for those periods when we meet.
Michael, I look forward to working with you as we continue to build the partnership between Temple
City and SGVHS to ensure the animals of your City receive the attention and care they need and deserve.
Board President
851 E. Grand Avenue San Gabriel, California 91776 626.286.1159 www.sgvhurnant?.o[.~ Tax ID 95-1661090