14-E
TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Joel Hockman, Director of Public Safety
SUBJECT: Consideration and possible action to authorize the Mayor to execute Amendment No. 21 to Agreement File No. 200, in a form approved by the City Attorney, with Southeast Area Animal Control Authority (SEAACA) for animal control services.
DATE: August 14, 2023
EXECUTIVE SUMMARY
The 2023-24 Amendment to the Agreement with SEAACA reflects an annual contract rate increase of 8%. There are no changes in service delivery proposed for next year.
RECOMMENDATION TO CITY COUNCIL
1) Authorize the Mayor to execute Amendment No. 21 to Agreement File No. 200, in a form approved by the City Attorney; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
As illustrated below, the proposed annual gross cost of SEAACA services is $739,223 which will be offset by the estimated licensing and penalty revenue of $138,000, for a net cost of approximately $601,223.
Cost of SEAACA services per AFN 200, Amendment No. 21 $ 739,223 Less: Guaranteed animal license revenue (138,000) Net cost of SEAACA services $ 601,223
Note: Annual animal license fees collected in excess of the guaranteed revenue amount is split 50/50 between the City and SEAACA. There were no animal license revenues collected in excess of the $138,000 guaranteed revenue in FYs 2019-2021 and the City received a minimal amount of $56 in FY 2021-22.
Staff Report – Amendment No. 21 to SEAACA Agreement File No. 200 August 14, 2023
DISCUSSION
It is understood that the direction of both the SEAACA Board of Commissioners and the Administrative Committee is to limit their costs of operations. The contract rate increase for fiscal year 2023-24 is 8% and the annual increases for the past three fiscal years were
5.0% (2022-23), 5.3% (2021-22), and 3.5% (2020-21).
According to SEAACA1:
Our fiscal year annual operating budget included actual known increases in agency services and supplies including, but not limited to, preventative maintenance contracts, computer maintenance costs, personnel, retirement, health insurance, energy/utilities, cleaning supplies, kennel supplies, veterinary surgical supplies, animal pharmaceuticals, contract veterinarians, shelter repairs/maintenance, animal food and supplies, insurance coverage (property, liability, worker’s comp and vehicle insurances) and replacement vehicles, computer and other necessary equipment.
SEAACA recognizes that our employees are our most valuable resource and is aware that we must compensate them appropriately for the work they perform; effective July 1, 2022, SEAACA employees received a negotiated 8% COLA (our employees had not received an adjustment in salary for several years); negotiations for a future MOU are pending.
ATTACHMENT:
Amendment No. 21 to Agreement File No. 200 ............................................................... 3
1 Cathy Kyle, SEAACA Manager, Human Resources/Finance
____________________________________________________________________________________________________________________________________________________________ Amendment to Agreement FY 2023-2024
1 June 2023
AMENDMENT TO THE AGREEMENT FOR ANIMAL CONTROL SERVICES
THIS AMENDMENT is entered into this 1st day of July 2023, by and between the SOUTHEAST AREA ANIMAL CONTROL AUTHORITY whose address is 9777 SEAACA Street, Downey, California 90241 (herein, "SEAACA”) and the CITY OF BELLFLOWER , a California Corporation, whose address is 16600 Civic Center Drive, California 90706 (herein “CITY")
RECITALS
WHEREAS CITY and SEAACA previously entered into an Agreement for Animal Control and Sheltering Services dated July 1, 2019 for the Fiscal Years 2019-2024; and
WHEREAS, Said Agreement provides for annual costs and fees for Animal Control Services; and,
WHEREAS SEAACA and CITY desire to set forth costs to CITY for Animal Control and Sheltering Services for the Fiscal Year 2023-2024:
NOW THEREFORE, SEAACA and CITY agree that the aforementioned Agreement for Animal Control Services dated July 1, 2019, shall be amended in the following regards:
SECTION II. Paragraph 2, Subsections a) and b) are amended to read as follows:
a) The total cost to the CITY for Fiscal Year 2023-2024 shall be $739,223.00 offset by revenues collected by SEAACA in performance of this Agreement for license fees and penalties.
SEAACA guarantees that the base revenues shall be $138,000.00 for Fiscal Year 2023-2024; the guarantee will be provided by SEAACA annually. If license revenues exceed the guarantee, 50% shall be retained by SEAACA and 50% shall be returned to the CITY following the close of the fiscal year.
b) The net cost for Fiscal Year 2023-2024 to CITY for said services shall not exceed $601,223.00 and shall be paid by CITY to SEAACA in two equal payments upon invoice on the following schedule: July 1, 2023, $300,611.50 and $300,611.50 on October 1, 2023. Said sums shall be paid within thirty (30) days after receipt of invoice. If payment is not delivered to SEAACA within thirty (30) days after CITY's receipt of invoice, SEAACA is entitled to recover interest thereon. Said interest shall be at the rate of ten percent (10%) per year, o r any portion thereof, calculated from the last day of the month in which the services were performed. If such payment is not delivered to SEAACA within the time set forth hereinabove, SEAACA may satisfy such indebtedness, including interest thereon, from any funds of the CITY on deposit or to the credit of SEAACA, without giving further notice to CITY of SEAACA's intent to do so.
SECTION 2. All of the remaining provisions of the Agreement for Animal Control Services shall remain the same.
IN WITNESS WHEREOF, THE CITY OF BELLFLOWER, by order of its City Council caused this Amendment to Agreement to be signed by its Mayor and attested to by its Clerk, and the SOUTHEAST AREA ANIMAL CONTROL AUTHORITY, (a.k.a. SEAACA), by order of its Commission, has caused this Agreement to be subscribed by the Chairperson of said Commission and attested to by it’s Executive Director and/or Clerk of said Commission.
____________________________________________________________________________________________________________________________________________________________ Amendment to Agreement FY 2023-2024
2 June 2023
AGREEMENT WITH SOUTHEAST AREA ANMAL CONTROL AUTHORITY FOR ANIMAL CONTROL AND SHELTERING SERVICES FOR FISCAL YEAR 2023-2024 -Signature Page-
CITY OF BELLFLOWER
BY: _______________________________
Sonny R. Santa Ines, Mayor
ATTEST:
_________________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM AND CONTENT
_________________________________
Karl H. Berger, City Attorney
SOUTHEAST AREA
ANIMAL CONTROL AUTHORITY
BY: __________________________________
Gloria Olmos, Chairperson
ATTEST:
_________________________________
Denise Woodside, Executive Director
APPROVED AS TO FORM AND CONTENT
_________________________________
Scott Nichols, SEAACA Attorney