CITY COUNCIL STAFF REPORT
May 7, 2024 {{section.number}}l
AUTHORIZE THE CITY MANAGER TO EXECUTE A FIRST RESTATED MANAGEMENT
SERVICES AGREEMENT WITH THE PACIFIC ANIMAL WELFARE SOCIETY OF CORONADO (PAWS) FOR OPERATIONS OF THE CORONADO ANIMAL CARE FACILITY RECOMMENDATION:
Authorize the City Manager to execute a First Restated Management Services Agreement, in a form approved by the City Attorney, with Pacific Animal Welfare Society (PAWS) for the operation of the Coronado Animal Care Facility.
BACKGROUND:
PAWS has operated the Coronado Animal Care Facility (ACF) since November 1, 2014, taking over from the Coronado Police Department per a Management Services Agreement between PAWS and the City. Under the agreement, PAWS manages the operations of the ACF and provides for the care, feeding, veterinary care, behavioral assessment, and adoption of Coronado’s stray animals. PAWS also assumes emergency custodial care of animals at the request of the Police Department.
The Management Services Agreement has been amended four times to extend the term and adjust the contract cost by consumer price index factors. The most recent amendment adjusted the contract price through FY 2022-23.
PAWS has demonstrated that ACF operations have sustained significant cost increases in medical expenses, staffing costs related to both animal volumes and care demand as well as escalating CPI. As the Management Services Agreement had been amended several times in the 10 years since initial execution, the City and PAWS agreed to undertake a more thorough review of the contract to arrive at a First Restated Agreement.
ANALYSIS:
The First Restated Agreement is presented to the City Council for approval and authorization to execute. The agreement retains the same level of animal care support as has been provided. Key changes to the Agreement include:
· Term of 5 years
· Total annual contract price of $541,000 with annual adjustments for CPI not to exceed 5.5% and an annual true-up for utilities costs and insurance premiums · A joint effort by the City and PAWS to plan needed renovation to the ACF to improve animal care and adoption success, improve operability, and contain medical care costs. As the ACF is a City facility, the City will manage and fund renovations.
City staff negotiated this Agreement in good faith and recommends Council approval.
FISCAL IMPACT:
Sufficient funds are budgeted in the FY 2023-24 Budget for the current year contract costs. Future funds will be budgeted annually after the analysis of CPI and other variable factors.
ALTERNATIVE:
The City Council could decline to authorize the contract and provide alternate direction to staff.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
Not Applicable.
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
1. First Restated Management Services Agreement with Pacific Animal Welfare Society Submitted By: City Clerk's Office / Kelsea Holian