TO: | Honorable Mayor and City Council | FROM: | Christian Clegg, City Manager | DATE: | 6/12/2023 | WARD: | | SUBJECT: | Amendment No. 1 to Agreement No. 2022-185 with the Society for the Prevention of Cruelty to Animals (SPCA) (revised not to exceed $2,238,872 annually) for Animal Shelter Management Services at the Bakersfield Animal Control Center. | STAFF RECOMMENDATION:
Staff recommends approval of the amendment. | BACKGROUND:
On September 25, 2013, the City has contracted with the Bakersfield Society for the Prevention of Cruelty to Animals (SPCA) to manage and operate the City of Bakersfield Animal Care Center (CBACC), most recently pursuant to Agreement No. 2022-185 approved by the City Council and executed on September 21, 2022. SPCA is an independent non-profit organization founded in 1949, which advocates for and is an expert regarding the general welfare and humane treatment of animals and prevention of pet overpopulation. The current term for the Agreement (No. 2022-185) is set to expire on June 30, 2023, with the option to renew for two consecutive one-year periods.
The City believes SPCA is in the best position to identify needs, evaluate options, purchase goods, and contract for various facility and maintenance needs of CBACC due to SPCA’s day-to-day role in managing and operating the facility, and is likewise better equipped to retain necessary staff for successful operations. Agreement No. 2022-185 currently provides compensation on a flat-rate monthly basis subject to itemized invoicing, which unduly restrains SPCA’s ability to address unanticipated needs and ensure minimal disruption to CBACC operations. As the City wishes to continue this valuable partnership, an amendment has been created to ensure a continuance of operations at CBACC and to modify existing payment procedures to ensure the SPCA can efficiently and effectively perform its obligations, increase compensation for the remainder of the available Term (i.e., automatic Renewal Periods until June 2025), retain necessary staff, and meet fluctuating cash-flow demands of daily operations and facility needs.
The Amendment revises the compensation section of the Agreement to provide three main components:
- An annual management fee of $125,000 for SPCA's services in managing and operating CBACC. This base fee amount is not changing; however, it will now be subject to an annual CPI adjustment and, effective July 1, 2023, will be paid in quarterly, as opposed to monthly, installments.
- An annual Operations & Maintenance Payment to serve as compensation for all other actual and necessary expenditures reasonably incurred in managing the CBACC facility, as set forth in the Agreement. The annual O&M Payment is currently $1,228,872 and paid monthly; effective July 1, 2023 it will be increased to $1,613,872 and paid quarterly. The increased O&M Payment is intended to allow SPCA sufficient funds to directly hire all staff SPCA deems necessary and appropriate for efficient and effective operations at CBACC.
- A Facility Improvements Fund for purposes of needed repairs, equipment, and improvements to the CBACC premises which are infrequent, non-routine, and/or due to wear and tear over time, including but not limited to structural components or appurtenances and mechanical and non-mechanical facility needs such as HVAC, plumbing, roofing, lighting, fencing, cameras, locks, appliances, and building repairs. Effective July 1, 2023, SPCA will be advanced $250,000 from the Facility Improvements Fund. Thereafter, SPCA may request additional funds be advanced by written request, subject to an accounting of all monies spent to date, not to exceed a total of $500,000 in the fiscal year. The Amendment further specifies requirements and procedures that SPCA must abide by prior to SPCA expending any funds from the Facility Improvements Fund.
|
| | | |