HomeMy WebLinkAboutStaff Report 3.F 07/06/2015DATE: July 6, 2015
TO: Honorable Mayor and Members of the City-Council
FROM: John C. Brown, City Manager
Agenda Item #3.F
SUBJECT: Resolution Approving the Second Amendment to the Professional Services
Agreement with the Petaluma Animal Services Foundation
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Approving the Second
Amendment to the Professional Services Agreement with the Petaluma Animal Services
Foundation.
BACKGROUND
In July 2012, the City Council approved an agreement with the Petaluma Animal Services
Foundation (PASF) to provide Animal Services in the City of Petaluma, effective July 30, 2012
(the Agreement). Prior to that date, the City of Petaluma provided animal and shelter services
directly. The decision to contract with the Animal Services Foundation occurred during a period
of on -going budget reductions and was made to avoid further reductions to service levels, and
with the expectation that a non - profit organization would be able to access additional funding
sources to restore and enhance services.
Section 2 of the Agreement provides for a three -year term. It allows the City to extend the term
for one (1) additional three -year period. Section 2 (A) further dictates the PASF must seek an
extension at least 90 days, but no more than 180 days, prior to the termination date. The
extension is at the City's sole discretion. The three -year period of the Agreement terminates on
July 31, 2015. Section 3 caps the City compensation to the PASF at $478,220 per year. Section
10 specifies the fees that PASF may charge, maximum annual automatic increases which may be
implemented, requirements for setting fees greater than those allowed by automatic increase, and
provides for revenue sharing between the parties. Because of its financial condition when the
Agreement was approved, the City retains $92,000 each year from the fees and charges collected
by the PASF. This amount is deducted, by twelfths, from the compensation paid to PASF each
month. The maximum annual net compensation that has actually been provided to PASF during
each of the past three years was $386,220.
In February, 2014, the City Council approved the First Amendment to the Agreement. The
amendment modified the fee schedule to reduce certain fees, and to increase certain other fees in
excess of those automatically granted under section 10.
On February 23, 2015 PASF representatives requested an extension to the Agreement, and
elimination of the fee amount retained by the City (Attachment 2). I met with three members of
the PASF Board shortly thereafter, to discuss their request, City finances, PASF service levels,
and other options for revenue sharing between the parties.
DISCUSSION
The Council's objectives in contracting with the PASF were to maintain viable Animal Services
programs without further degradation of services or loss of personnel; insulate the City from
exposure to future cost increases; improve the health and welfare of animals in the care of the
shelter; increase the number of animals adopted from the shelter; decrease the number of animals
euthanized each year with the goal of being a "no- kill" shelter; provide training and
rehabilitation for some animals to aid in their successful adoption; and to capitalize on the
PASF's status as a non - profit to enhance fundraising and grant writing opportunities to
strengthen and expand existing programs. This included an expectation that staffing will
increase, hours of operation will expand, and additional programs will be added.
The Animal Services Advisory Committee and the City Council were provided regular reporting
during the past three years, which documents the PASF's success in meeting these objectives. In
particular, staffing hours and animal adoptions have increased, as have patrol activities.
Conversely, shelter population and euthanizations have decreased, and new programs have been
introduced. The Committee and the Council have been pleased with these accomplishments, and
with the PASF's outreach efforts, use of social media, and attraction of outside funding.
Attached for the City Council's information is a copy of the report which addresses the most
recent reporting period, August 1, 2014 through January 31, 2015 (Attachment 3). The report
will be shared with the Animal Services Advisory Committee at its July 1, 2015 meeting, and is
provided to you as an attachment to this report. Based on PASF's performance over the past
three years, however, which continues to be exhibited in the most recent semi - annual report,
extending the Agreement for one (1) additional three -year period is recommended.
As previously mentioned, the PASF has asked to eliminate the revenue retained by the City of
Petaluma pursuant to Section 10. This request corresponds to costs associated with additional
services the PASF has provided, beyond those required in the original Scope of Work. Since
assuming animal care and control operations from the City, PASF has:
➢ increased full -time employment from 260 hours per week to 321 hours per week;
➢ increased animal access to medical care from one day per week, with limited in -house
services, to 6 days per week, which includes the services of an entire vet hospital and
staff;
➢ added online dog licensing to the mail or personal visit options formerly only available to
residents;
➢ increased the animal live release rate to 99.15 %; and
➢ added a behaviorist, who offers training and retention services to residents in need of
such services for their animals. (Not available under City management).
As PASF has increased the services it provides for Petaluma, City staff's time spent on Animal
Services administration has decreased. City staff time still includes fielding and routing public
inquiries, periodic interaction with PASF management; contract management, which primarily
consists of administering reporting provisions; accounts payable and accounting; and staffing the
Animal Services Advisory Committee. As previously indicated, the City's financial position in
2012 was largely responsible for the revenue retention provision in Section 10. Our financial
position is less precarious in 2015, and can support a reduction, but not elimination, of the City's
share of Animal Services revenues. This has been discussed with the PASF, which has modified
its original request and now seeks a fifty percent (50 %) reduction in the City's revenue retention
amount. For the previously- stated reasons, approval of this request is recommended.
The attached Resolution authorizes and incorporates as an exhibit the Second Amendment to the
Agreement. Changes are to Section 2, to exercise the one -time three -year extension, extending
the Agreement to July 31, 2018; and to Section 10, reducing the revenues retained by the City
from $92,000 per year to $46,000 per year. Changes to Section 2 also eliminate reference to
further extension of the Agreement; it will need to be renegotiated prior to July 31, 2018 if the
parties intend to continue their relationship beyond that date.
FINANCIAL IMPACTS
The recommended action will not change the City's not -to- exceed contribution to PASF of
$478,200 per year. It would change the amount of revenue shared between the parties, reducing
the City's share by $46,000 and increasing the PASF's share by a corresponding amount. This
would decrease the amount of revenue retained by the City to $46,000 annually, and increase the
City's actual net not -to- exceed payments to the PASF to $432,220 annually. The reduction in
City revenues was anticipated, and incorporated, into the 2015 -16 Budget.
ATTACHMENTS
1. Resolution
2. PASF letter of February 23, 2015
3. August 1, 2014 through January 31, 2015 Report
ATTACHMENT 1
RESOLUTION APPROVING THE SECOND AMENDMENT TO THE PROFESSIONAL
SERVICES AGREEMENT WITH THE PETALUMA ANIMAL SERVICES
FOUNDATION
WHEREAS, on July 2, 2012 the City Council approved and authorized the City
Manager to execute a Professional Services Agreement (Agreement) with the Petaluma Animal
Services Foundation (PASF) to provide animal services, effective August 1, 2012; and
WHEREAS, on February 24, 2014 the City Council approved the First Amendment to
the Agreement, which replaced and superseded the fee schedule labeled "Exhibit E" in the
Agreement approved in July 2012; and
WHEREAS, Section 2 (A) of the Agreement provides for a three -year term, and allows
that the City may extend the term for one (1) additional three -year period; and
WHEREAS, Section 10 (C) of the Agreement provides that the City shall retain a
portion of the Fees and Charges collected by the PASF; and
WHEREAS, the City and PASF wish to extend the Agreement through July 31, 2018,
and to modify the fee sharing arrangement to provide additional funding to PASF.
NOW, THEREFORE, BE IT RESOLVED that the Petaluma City Council hereby
approves the Second Amendment to the Professional Services Agreement with the Petaluma
Animal Services Foundation, which extends the term of the Agreement to July 31, 2018 and
modifies the revenue sharing arrangement between the City and the PASF, which is attached to
and incorporated in this Resolution as Exhibit A.
4
EXHIBIT A
SECOND AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH
PETALUMA ANIMAL SERVICES FOUNDATION
THE AGREEMENT entered into and effective as of August 1, 2015 by and between the City of
Petaluma, a municipal corporation and a charter city (hereinafter referred to as "City ") and the
Petaluma Animal Services Foundation (hereinafter referred to as "Contractor ") is hereby
amended as follows:
Section 2. TERM.
The term of this amended Agreement ( "Term ") commences on August 1, 2015 and expires on
July 31, 2018 (Expiration Date ") unless the Agreement is: amended in accordance with Section
23 or the Agreement is terminated sooner, in accordance with Section 25.
A. Upon termination, any and all documents and materials City has provided to
Contractor and any and all of the documents or materials prepared for City or relating
to the performance of the Services, except for Contractor records that are protected by
law, such as Contractor attorney - client and work - product privileged documents, and
personally identifiable health information of Contractor employees or prospective
employees (unless the employee or prospective employee has authorized the delivery)
shall be delivered to the City as soon as possible, but not later than sixty (60) days
after termination of the Agreement.
Section 10. FEES AND CHARGES
A. Attached to and made a part of this Agreement as Exhibit `B" is a Fee Chart titled
"Exhibit E -PASF Fee Schedule 2/24/2014" that lists the maximum fees and charges that
the Contractor shall charge and collect from those persons receiving Services Contractor
performs pursuant to this Agreement for the Period August 1, 2015 through July 31,
2016.
B. Annually, beginning August 1, 2016, the fees and charges specified in Exhibit E may be
increased by an amount no greater than the increase in the Bay Area Consumer Price
Index since the prior year.
C. Each year during the term of the Agreement, $46,000 of the total amount collected by the
Contractor that year from charges for the performance of the Services shall be retained by
the City. To facilitate that transaction, the City will deduct $3,833 from the amount
otherwise due the Contractor as payment for each monthly invoice submitted to the City
for payment. For example, if Contractor's monthly invoice totals $39,851.67, City shall
pay $36,018.67.
IN WITNESS WHEREOF, the parties hereto have executed this document the
.20
CITY OF PETALUMA
City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
APPROVED:
Risk Manager
APPROVED:
Finance Director
CONSULT
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Name and Title
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Taxpayer I.D. Number
Petaluma Business Tax Certificate Number
Petaluma Animal
Services Foundation 40 PE.
Board of Directors
February 23, 2015
John C. Brown
City Manager
City of Petaluma
11 English Street
Petaluma, CA 94952
Dear Mr. Brown,
ATTACHMENT 2
Ic
FEB 2 4 2015
CITY MANAGER
Thank you for scheduling a meeting this Thursday with representatives of the Petaluma Animal Services
Foundation Board of Directors — Katherine Wells, Secretary, Valerie Fausone, and myself — regarding the
upcoming renewal of our contract with the City.
As you requested, this letter summarizes the main points we would like incorporated in the new contract.
Essentially, the terms of the current agreement would be extended without change. One item we would
like to modify is provision 9.C, which we believe should be deleted and replaced with:
"The Contractor may retain as revenue of the Contractor any and all charges collected for performance of
the Services."
We look forward to meeting with you on Thursday.
Sincerely,
Donald Duffala, Esq.
(707) 769 -0670
dongpetalumaanimalshelter.org
840 Hopper Street Petaluma, CA 94952
707- 778 -PETS info @petalumaanimalsheiter.org www.petalumaanimaisheiter.org
11
ATTACHMENT 3
Petaluma Animal
r
Services Foundation
Providing HOPE and homes for animals in need.
Review August 1St, 2014 —January 31St' 2015
Animal intakes
8/1/2013 - 1/31/2014
Dogs 271
Cats 268
Other 87
Total = 626
Adoptions:
8/1/2013- 1/31/2014
Dogs 98
Cats 237
Other 20
Total = 355
Euthanasia
8/1/2013- 1/31/2014
Dogs 3
Cats 19
Other 0
Total = 22
8/1/2014 - 1/31/2015
Dogs 173
Cats 195
Other 71
Total = 439
8/1/2014- 1/31/2015
Dogs
93
Cats
240
Other
13
Total
= 346
8/1/2013- 1/31/2015
Dogs
2
Cats
1
Other
0
Total
= 3
PASF live release rate for 8/1/2014 to 1/31/2015
99.52%
Providing HOPE:
Veterinary /Medical
Petaluma Animal
Services Foundation
and homes for animals in need.
8/1/2013- 1/31/2014 8/1/2013 - 1/31/2015
Shelter Veterinarian hours 277.5 242
RVT hours 455 553.25
Exams 2603 2825
Surgeries 377 287
PASF shelter veterinarian works 8 hours per week. Registered Veterinary Technician
works 16+ hours per week. Additional medical needs are met by using local
veterinarians and emergency hospitals after hours. Additional medical days are added as
needed.
Staff ine Levels
7/31/2012
Shelter Assistant
Animal Control Officers
Shelter Supervisor
FT Kennel Technician
PT Kennel Technician
Animal Services Manager
Total:
7/31/2013
40 hrs
80 hrs
40 hrs
40 hrs
20 hrs
40 hrs
260 hrs per week
CSR /Vol Coord
55 hrs
Animal Control Officers
80 hrs
Cat Care Coord
40 hrs
Registered Vet Tech
16 hrs
PT Kennel Technician
69 hrs
Executive Director
40 hrs
Total:
300 hrs per week
7/31/2014
CSR /Vol Coord
40 hrs
Animal Control Officers
80 hrs
Cat Care Coord
40 hrs
Registered Vet Tech
16 hrs
PT Kennel Technician
45 hrs
Providing HOPE
Petaluma Animal
Services Foundation
and homes for animals in need.
Executive Director 40 hrs
Certified Dog Trainer 40 hrs
Mkting /Social Media Coord 20 hrs
Total: 321 hrs per week
1/31/2015
CSR /Vol Coord
40 hrs
Animal Control Officers
80 hrs
Cat Care Coord
40 hrs
Registered Vet Tech
16 hrs
PT Kennel Technician
47 hrs
Executive Director
40 hrs
Certified Dog Trainer
60 hrs
Mkting /Social Media Coord
20 hrs
Total: 343 hrs per week
Open Hours
Tuesday- Friday 1:00 pm to 6:00 pm
Saturday 12:00pm to 6:00 pm
These hours have remained static before and after the Foundation took over animal
services.
Petaluma Animal
Services Foundation
Providing 'HOPE and homes for animals in need.
Animal Control Calls for Service and Response
Total CFS: 631 2,181
Response times are immediate during business hours and within 30 minutes after hours.
Offsite Events
We hold offsite adoption events almost every weekend and sometimes during the week.
This involves loading up animals in our mobile adoption vehicle taking them to a
location and setting up for a period of time to show adoptable animals. Fundraisers are
held at offsite locations as well.
Licensing data
8/1/2013- 1/31/2014
2,267 licenses sold
8/1/2014- 1/31/2015
1,874 licenses sold
Volunteer hours
Approximately 8 volunteers a day for two hours = 16 hours a day. This equals 112 hours
a week in volunteer labor. This has remained constant from COFP management to PASF
management.
8/1/2013 - 1/31/2014
8/1/2014 - 1/31/2015
Bite / Scratch
25
27
Cat Colony
2
0
Cruelty/ Neglect
6
3
Enforcement
82
164
Owner Assist
16
4
Patrols
274
1539
Police Assist
10
12
Stray
274
265
Transport
7
4
Wildlife
93
96
Welfare Check
34
67
Total CFS: 631 2,181
Response times are immediate during business hours and within 30 minutes after hours.
Offsite Events
We hold offsite adoption events almost every weekend and sometimes during the week.
This involves loading up animals in our mobile adoption vehicle taking them to a
location and setting up for a period of time to show adoptable animals. Fundraisers are
held at offsite locations as well.
Licensing data
8/1/2013- 1/31/2014
2,267 licenses sold
8/1/2014- 1/31/2015
1,874 licenses sold
Volunteer hours
Approximately 8 volunteers a day for two hours = 16 hours a day. This equals 112 hours
a week in volunteer labor. This has remained constant from COFP management to PASF
management.
Providing HOPE`
Petaluma Animal
Services Foundation
and homes for animals in need.
Social media use: website hits, FB reach
1/31/13
Website Hits
1/31/2014
Daily facebook readers
8,200
8,812
Friends of friends
N /A*
N /A*
People talking about page
N /A*
N /A*
Overall readers
N /A*
N /A*
Weekly FB post clicks
20,000
27,726
Overall FB reach
44,000
50,139
Twitter Accounts
2
0
Instagram Accounts
0
1
*Facebook changed the way statistics are reported. Consequently some
categories have changed from one date range to the next.
Social media is an integral part of our marketing and fundraising strategy. Website hits
were 37,642 as of 1/31/14. We have stopped using Twitter as it proved not to be useful.
We have started an Instagram account recently and that is slowly gaining traction.
All events, wish lists, animals for adoption are posted on our page each day. PASF does a
minimum of 15 FB posts a day, to a maximum of 23 posts per day, 365 days a year.
All strays are posted on the website and on Facebook immediately, leading to a quick
return home.
Grants received
Farmer's Wife Barntique - $2,000
Finances:
Please see attached document
The document shows all personnel costs while the staffing levels show only those
assigned to Petaluma.
, "Y
7:39 AM Petaluma Animal Services Foundation
05/01/15
Accrual Basis Profit & Loss Prev Year Comparison
August 2014 through January 2015
F
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Aug '14 - Jan 15
Aug '13 - Jan 14
Ordinary Income /Expense
Income
4000 • Contribution Income
4010 • Individual Contributions
237,153.74
101,680.85
4030 • Calendar
1,254.00
4,590.00
4040 • Hope Fund - Vet Care
8,475.00
0.00
Total 4000 • Contribution Income
246,882.74
106,270.85
5000 • Earned Income
5010 • Contract Income
5011 • City of Petaluma
239,100.00
239,100.00
5013 • City of Healdsburg
48,249.96
0.00
5015 • City of Cloverdale
1,294.00
0.00
Total 5010 • Contract Income
288,643.96
239,100.00
5050 • Other Earned Income
230.00
0.00
5100 • Adoption Income
5110 • Adoptions -Cat
8,165.00
13,017.80
5120 • Adoptions -Dog
6,080.00
5,711.00
5130 • Adoptions -Other Animals
49.00
150.00
Total 5100 • Adoption Income
14,294.00
18,878.80
5200 • Clinic Income
5210 • Spay /Neuter
2,760.00
960.00
5220 • Microchip- Dog /Cat
1,765.00
200.00
5230 • Cremation & Disposal
399.00
459.00
5250 • Other Clinic Fees
5,346.52
14,931.00
5270 • Redemption
6,055.00
900.00
5280 • Surrender
2,557.00
297.00
5200 • Clinic Income - Other
0.00
6,090.00
Total 5200 • Clinic Income
18,882.52
23,837.00
5300 • Training Center
50.00
0.00
5400 • Boarding
1,220.00
960.00
5500 • Licensing
5515 • HBC Licensing
1,729.00
0.00
5520 • PASF Licensing Online
120.00
0.00
5500 • Licensing - Other
38,981.34
36,078.00
Total 5500 • Licensing
40,830.34
36,078.00
5600 • Merchandise Sales
686.00
210.00
5700 • Special Events Revenue
5720 • Rooster Booster
12,791.00
29,600.00
5740 • Other Special Events
15,432.26
0.00
Total 5700 • Special Events Revenue
28,223.26
29,600.00.
5900 • Other Income
2,273.41
0.00
Total 5000 • Earned Income
395,333.49
348,663.80
Total Income
642,216.23
454,934.65
Gross Profit
642,216.23
454,934.65
F
g.a4
7:39 AM Petaluma Animal Services Foundation
05/01/15
Accrual Basis Profit & Loss Prev Year Comparison
August 2014 through January 2015
i
Aug '14 - Jan 15
Aug '13 -Jan 14
Expense
7000 • Personnel Expense
7010 • Salaries & Wages
246,368.41
241,686.79
7020 • Employee Benefits
7025 • Simple IRA Fees
240.00
0.00
7020 • Employee Benefits- Other
34,778.67
16,553.00
Total 7020 • Employee Benefits
35,018.67
16,553.00
7030 • Recruitment
296.00
162.85
7040 • Fingerprinting, Background Chk
130.00
0.00
7050 • Worker's Compensation
20,348.50
15,551.50
7060 • Continuing Education
476.50
0.00
7090 • Employer Payroll Taxes
20,563.36
2,738.22
Total 7000 • Personnel Expense
323,201.44
276,692.36
7200 • Professional Fees
7210 • Accounting
9,932.00
1,640.00
7220 • Graphic Designer
1,635.63
1,800.00
7230 • Shelter Medical
22,423.96
20,062.50
7240 • Outside Medical
3,420.55
1,142.59
7250 • Kennel Contractors
0.00
1,110.00
7260 • Humane Education
0.00
392.97
7290 • Other Professional Services
244.17
59.00
Total 7200 • Professional Fees
37,656.31
26,207.06
7400 • Operations Expense
7410 • Office Supplies
7,538.48
4,047.16
7420 • Postage & Delivery
2,154.27
5,719.68
7430 • Printing & Duplicating
1,110.38
4,516.40
7440 • Hardware & Software
678.50
2,123.97
7450 • Dues and Subscriptions
442.60
180.00
7460 • Advertising and Promotion
2,470.38
6,842.64
7465 • Supplies - animals
4,242.60
25,183.99
7470 • Pet Food
0.00
16.55
7480 • Automobile Expense
7481 • Fuel
6,345.36
32.79
7482 • Other Auto Expenses
4,452.65
0.00
7480 • Automobile Expense - Other
271.00
7,468.61
Total 7480 • Automobile Expense
11,069.01
7,501.40
7485 • License Tags
401.30
275.96
7490 • City Fees
46,466.00
46,002.00
Total 7400 • Operations Expense
76,573.52
102,409.75
7500 • Clinic & Program Expense
7510 • Medical Supplies
17,923.02
17,491.55
7520 • Microchips
1,043.53
3,878.59
Total 7500 • Clinic & Program Expense
18,966.55
21,370.14
7600 • Meetings & Events
i
7:39 AM Petaluma Animal Services Foundation
05/01/15
Accrual Basis Profit & Loss Prev'Year Comparison
August 2014 through January 2015
t
Aug '14 -Jan 15
Aug '13 - Jan 14
7610 • Catering & Food
980.54
864.55
7620 • Fundraising
9,687.63
2,598.89
7650 • Adoption Event
66.53
150.00
Total 7600 • Meetings & Events
10,734.70
3,613.44
7700•Insurance Expense
7710 • Gen Liability /Auto /Prop /Umb
13,314.80
11,525.70
7720 • Directors &.Officers
1,864.20
1,494.50
7730 • Professional Liability
7,233.85
3,959.58
Total 7700 • Insurance Expense
22,412.85
16,979.78
7800 • Occupancy /Facility
7820 • Utilities
8,227.95
9,144.37
7830 • Repairs and Maintenance
6,516.93
6,298.55
7840 • Telephone & Internet
3,866.59
3,149.95
7850 • Depreciation Expense
2,839.35
0.00
7860 • Equipment
3,623.34
6,461.62
Total 7800 • Occupancy /Facility
25,074.16
25,054.49
7900 • Business Expense
7910 • Bank Service Charges
2,641.06
2,357.49
7920 • Interest Expense
457.27
119.75
7930 • Miscellaneous Expenses
370.22
608.52
Total 7900 • Business Expense
3,468.55
3,085.76
Total Expense
518,088.08
475,412.78
Net Ordinary Income
124,128.15
- 20,478.13
Net Income
124,128.15
- 20,478.13
t