City Council
February 20, 2024
AGENDA REPORT
TO: Jestin D. Johnson FROM: Ann Dunn
City Administrator Director, Oakland Animal
Services
SUBJECT: Veterinary Supply Contract with
Covetrus DATE: February 7, 2024
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Adopt A Resolution Approving An Increase To The Existing Oakland Animal Services Cooperative Purchase Agreement With Covetrus North America/Butler Animal Health Supply LLC, By An Amount Not To Exceed Sixty Thousand Six Hundred Thirty-Eight Dollars And Fifty Cents ($60,638.50), For A Total Contract Amount Of Seven Hundred Ninety-Nine Thousand Two Hundred Ninety-Three Dollars And Eight Cents ($799,293.08).
EXECUTIVE SUMMARY
The proposed resolution will authorize the City Administrator to increase the amount of the July 1, 2018 – September 30, 2024 contract with Covetrus North America/Butler Animal Health Supply LLC (Covetrus) for veterinary supplies for shelter animals in an amount not to exceed $60,638.50.
The increase to the Covetrus contract will allow Oakland Animal Services (OAS) to pay outstanding invoices in the amount of $60,638.50. Following this requested increase, OAS will no longer utilize this vendor.
REASON FOR URGENCY
On January 11, 2024, Covetrus notified the City of Oakland (City) that it intends to “exercise any and all means available to Covetrus in collecting this balance [indicating that] a judgement against [the City] may include court costs, interest and attorney fees, as well as the amount of the claim.” An immediate action is required to avoid a substantial adverse impact that may occur if action was deferred to a subsequent special or regular meeting.
Jestin Johnson (Feb 12, 2024 17:34 PST)
Feb 12, 2024
Jestin D. Johnson, City Administrator
Subject: Veterinary Supply Contract with Covetrus
Date: February 7, 2024 Page 2
City Council
February 20, 2024
BACKGROUND / LEGISLATIVE HISTORY
Covetrus is under Contract Purchase Agreement #2019002146 for the provision of veterinary supplies for shelter animals for the period July 1, 2018 to September 30, 2024. The City utilized a Cooperative Purchase Agreement based on County of Kern Contract Agreement #1377, Purchase Order #1984810, as authorized by the City Municipal Code Section 2.04.080 Cooperative Purchasing Agreement. The original term of the contract was for an amount not to exceed $538,654.58. On March 20, 2023, the contract amount was increased by $200,000.00 under purchasing’s normal approval process for cooperative contracts/amendments. This occurred prior to City Council’s policy, adopted in July of 2023, that now requires approval by Council for cooperative contracts/amendments which exceed $250,000.
OAS was mistaken in the understanding of the funding remaining on the contract and purchased supplies in the amount of $60,638.50 for which invoices are outstanding. The City has contracted with a different vendor for veterinary supplies and will no longer be making purchases under Contract Purchase Agreement #2019002146.
ANALYSIS AND POLICY ALTERNATIVES
The proposed resolution would align with the Citywide priorities of a holistic community safety and a responsive, trustworthy government.
On January 11, 2024, Covetrus notified the City that of its intention to “exercise any and all means available to Covetrus in collecting this balance [indicating that] a judgement against [the City] may include court costs, interest and attorney fees, as well as the amount of the claim.”
The proposed resolution would authorize the City Administrator to increase the Covetrus contract amount in an amount not to exceed $60,638.50 for a total contract amount of $799,293.08 to allow for City to pay and resolve all outstanding invoices with Covetrus.
FISCAL IMPACT
The increase to the funding available for the contract would be for an amount not to exceed $60,638.50 to provide sufficient funding to pay outstanding invoices and will make the contract amount for the term July 2018 – September 30, 2024 a total not to exceed $799,293.08.
Funding for this contract is in the Fiscal Year 2023-2024 budget within Fund 1010, Organization 62111 – Animal Services, Account 52913 – Supplies Technical and Scientific. No additional budgetary adjustment is necessary.
PUBLIC OUTREACH / INTEREST
There are no public outreach opportunities associated with this report.
Jestin D. Johnson, City Administrator
Subject: Veterinary Supply Contract with Covetrus
Date: February 7, 2024 Page 3
City Council
February 20, 2024
COORDINATION
Development of this report was coordinated with internal OAS staff, the Budget Bureau and Controller’s Bureau in the Department of Finance, City Attorney’s Office, and City Administrator’s Office.
SUSTAINABLE OPPORTUNITIES
Economic: There are no economic, environmental or social equity opportunities associated with this report.
Environmental: There are no economic, environmental or social equity opportunities associated with this report.
Race & Equity: OAS largely serves people from Oakland who lack the financial resources to provide veterinary care for their animals and live in communities where there are no veterinary clinics or other support for companion animals.
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt A Resolution Approving An Increase To The Existing Oakland Animal Services Cooperative Purchase Agreement With Covetrus North America/Butler Animal Health Supply LLC, By An Amount Not To Exceed Sixty Thousand Six Hundred Thirty-Eight Dollars And Fifty Cents ($60,638.50), For A Total Contract Amount Of Seven Hundred Ninety-Nine Thousand Two Hundred Ninety-Three Dollars And Eight Cents ($799,293.08).
For questions regarding this report, please contact Ann Dunn, Director, at (510) 535-5604.
Respectfully submitted,
Digitally signed by Ann Dunn
Date: 2024.02.12 12:27:58
-08'00'
ANN DUNN
Director, Oakland Animal Services
Reviewed by: Betsy Lake
Assistant City Administrator
Prepared by: Ann Dunn, Director
Oakland Animal Services
Ann Dunn
Agenda Report - OAS - Covetrus (AD) 2
Final Audit Report 2024-02-12
Created: 2024-02-12 (Pacific Standard Time)
By: Winnie Woo ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAAONL1qgPj70V7-9wTLbgU9tsiX5Zn0cOD "Agenda Report - OAS - Covetrus (AD) 2" History
Document created by Winnie Woo ([email protected])
2024-02-12 - 12:49:14 PM PST- IP address: 157.131.33.180 Document emailed to Jestin Johnson ([email protected]) for signature 2024-02-12 - 12:49:36 PM PST
Document e-signed by Jestin Johnson ([email protected]) Signature Date: 2024-02-12 - 5:34:09 PM PST - Time Source: server- IP address: 76.133.5.53 Agreement completed.
2024-02-12 - 5:34:09 PM PST