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Home My Public Portal About18) 10B Purchase Animal Control And Shelter Services in Open MarketCity Council November 17, 2015 Page 2 of 4 5. On June 19, 2012, the City Council directed staff to issue an RFP for animal control and shelter services in light of the dissolution of the JPA. The City Council further directed staff to enter into a three-month agreement with SGVHS starting July 1, 2012, to ensure that there would be no gap in animal services pending selection of a service provider. 6. On July 1, 2012, SGVHS began providing service per the three-month agreement and also started providing full-time animal control services. In conjunction with the start of Fiscal Year (FY) 2012-13, City staff that had been providing the animal control function was reassigned and all animal control responsibilities were shifted to SGVHS. 7. On August 24, 2012, the City released an RFP. The RFP was posted on the City's web site and sent to SGVHS, the Pasadena Humane Society & Society for Prevention of Cruelty to Animals (SPCA), the Inland Valley Humane Society, and the Los Angeles County Department of Animal Care and Control. In response to the RFP, proposals were received from SGVHS and the Pasadena Humane Society & SPCA. 8. At the September 25, 2012, City Council meeting, numerous public speakers spoke in favor of contracting with SGVHS. The City Council voted unanimously to reject all bids, continue animal services with SGVHS on an interim basis, and direct staff to bring the item back for further consideration by June 2013. 9. On November 1, 2012, following the expiration of the three-month agreement, the City and SGVHS began a monthly service arrangement whereby services are provided on a monthly basis with no annual or other agreement. This arrangement is still in place today. 10. On June 27, 2015, SGVHS sent a letter to Temple City (Attachment "A") requesting to increase the service rates to $148,000 annually. This represents an increase of about nine percent over the current annual rate of $135,000, which has not increased since 2012. ANALYSIS: Temple City does not currently have an agreement with SGVHS, and has been utilizing its services on a month-to-month basis since 2012. Since the City Council voted to reject all bids in 2012, the next step would have been to either re-issue the RFP to solicit new or additional bids, or to take the necessary steps to forego another RFP process and purchase animal services on the open market. The Temple City Municipal Code (TCMC) generally requires that an RFP be issued for any contract services exceeding $25,000. However, TCMC Section 2-5-10 provides that "Bidding shall be dispensed with ... when the city council by a four-fifths (4/5) majority determines after City Council November 17, 2015 Page 3 of 4 opening of bids that rejection of all bids and purchase on the open market will best serve the city ... " The City Council in 2012 took the first step of rejecting all bids, but did not take the second step of approving the purchase on the open market. Staff is recommending that the City Council take that step now and approve the purchase of animal services on the open market directly from SGVHS. SGVHS was founded in 1924 as the Alhambra-San Gabriel Humane Society. SGVHS has provided animal shelter services and after-hours animal control services for Temple City since at least 1980, and full-time animal control services since 2012. SGVHS currently has contracts with two other cities; it provides animal control, shelter, and licensing services for San Gabriel; and shelter services for Rosemead. Staff is recommending that the City purchase directly from SGVHS for the following reasons: • SGVHS has consistently provided Temple City with excellent service, or been willing to immediately address any service concerns; • There are very few providers of animal control and shelter services in the San Gabriel Valley. When the RFP was issued, only two organizations responded. It is unlikely that issuing a new RFP would solicit additional responses or yield different results; • SGVHS is located in San Gabriel, which is nearby and convenient for Temple City residents. Other local animal service providers are located further away from Temple City and would not be as convenient for residents; and • Since SGVHS has relatively few client cities, losing Temple City as a client could have a significant financial impact on SGVHS and may affect its ability to provide services to other cities. If the City Council approves purchasing animal services on the open market, staff will negotiate a contract with SGVHS including fees, terms, services to be provided, and performance standards, and will return to the City Council for approval of the contract. CITY STRATEGIC GOALS: Approving procurement of animal services in the open market from SGVHS would further the City Strategic Goals of Public Health and Safety and Quality of Life. FISCAL IMPACT: The City currently pays SGVHS $135,000 annually. This amount is included in the FY 2015-16 City Budget. SGVHS is requesting to increase this amount to $148,000 annually. If approved, this would require an additional budget allocation of $13,000. The forthcoming staff report recommending approval of a contract between the City and June 27, 2015 Mr. Michael D. Forbes, AICP Community Development Director City ofTemple City 9701 Las Tunas Dr. Temple City, CA 91780 Dear Mr. Forbes, ATTACHMENT A San Gabriel __ ..t'a H Valler«'t._ umane . t socte y The San Gabriel Valley Humane Society ("SGVHS") is proud to serve the City ofTemple City and all its residents. As a local shelter, we very much value the relationships we have built and are continuing to build within the community. We look forward to many more years of service! As we move forward, the SGVHS must continually examine the sustainability of the shelter's finances and facility. This must include a review of our currently existing agreement which began in October 2012. The annual cost of the agreement is $135,000. We are now preparing to enter year four (4) of the agreement and respectfully request consideration of a contract and a cost increase. The California minimum wage will be increasing to $10 per hour effective January 1, 2016. This will impact several SGVHS staff. Additionally, no shelter personnel have received a cost of living increase in the last 3 to 4 years. SGVHS needs to provide staff compensation increases to comply with up-coming wage law changes and to maintain a fair wage base. We have also experienced other cost increases for property tax assessments, utilities and facility & Animal Control vehicle maintenance. Additionally, please note that subsequent to the establishment of the 2012 fee agreement, your staff requested and we did provide dog licensing follow-up services. It is our understanding that such services resulted in a decline in the number of non-compliant licenses from ~700 to ~20 as of June 22, 2015. We also issued about 300 citations related to licensing issues. These services were not included in the original agreement. Thus while these services have generated revenues for the City, SGVHS was not compensated for providing them. As the first requested increase since October 2012, the SGVHS respectfully asks for a minimum increase to $148,000 (9%) annually. This assumes a modest 3% increase per year beginning with the 2013 year. Our staff would be very thankful and the community would benefit from needed facility improvements. Thank you in advance for your consideration. t;dcdJ,£/{j Cynthia A. Rigney ~ Board President 851 E. Grand Avenue San Gabriel, California 91776 626.286.1159 www.sgvhumane.org Tax ID 95-1661090