City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00257 1/16/2024 Consent Item 8.
Contract: Goods Supplemental Agreement: Veterinary Supplies and Medications (two-thirds vote required)
File ID: 2024-00257
Location: Citywide
Recommendation: Adopt a Resolution: 1) suspend competitive bidding, in the best interests of the City, for veterinary supplies and medication; 2) pass a Motion authorizing the City Manager or City Manager’s designee to execute Supplemental Agreement No. 3 to City Agreement PRC002168 with MWI Animal Health (Amerisource Bergen) in the amount not-to-exceed $300,000, bringing the total not-to-exceed amount to $545,000 for veterinary supplies and medications; and 3) ratifying all prior supplemental agreements previously issued by the City Manager and resetting the City Manager’s authority to issue supplemental agreements accordance with Chapter 3.56 of the City Code.
Contact: Phillip Zimmerman, Animal Care Services Manager, (916) 808-8333, [email protected]; Jennifer Chikasawa, Administrative Officer, (916) 808-5851, [email protected], Community Development Department Presenter: None.
Attachments:
1-Description/Analysis
2-Supplemental Agreement with MWI Animal Health (Amerisource Bergen) 3-Resolution
Description/Analysis
Issue Detail: Animal Care Services does not have sufficient funding left on contract PRC002168 to pay for veterinary medical supplies and medications through the remainder of fiscal year 2023/24.
Staff is requesting authorization to execute Supplemental Agreement No. 3 to City Agreement PRC002168 with MWI Animal Health (Amerisource Bergen) for veterinary supplies and medications in the amount not-to-exceed $300,000, bringing the total not-to-exceed amount to $545,000 for veterinary supplies and medications.
The City’s Animal Care Services Shelter (Shelter) is classified as a depositary for living animals and therefore bound by California Civil Code. California Civil Code § 1834 states: “A depositary of living
File ID: 2024-00257 1/16/2024 Consent Item 8.
animals shall provide the animals with necessary and prompt veterinary care, nutrition, and shelter, and treat them kindly. Any depositary that fails to perform these duties may be liable for civil damages as provided by law”. If an animal enters the shelter and is sick or injured, it must be treated promptly.
The Shelter is a licensed State of California Veterinary Medical Board Veterinary Premise - license number 5855. As a registered veterinary premise, the Shelter is required to maintain the minimum standards of a fixed veterinary premise as defined in California Code of Regulations § 2030. Under this code the Shelter is required to have any necessary and appropriate drugs and equipment to treat an animal emergency readily available. As a licensed premise that provides surgical services, the Shelter is also required to maintain the necessary surgical instruments, equipment, and sanitary supplies.
Policy Considerations: City Code Section 3.56.230(c) authorizes the City Council to suspend competitive bidding for service when upon a two-thirds vote, the City Council determines it is in the best interests of the City to do so. Section 3.56.090 requires Council approval to authorize the City Manager to bind the City by contract for purchases that are $100,000 or more. The recommendations in this report are consistent with Sacramento City Code Section 3.56.
The supplemental agreement with MWI Animal Health - Amerisource Bergen exceeds the City Manager’s approval authority and requires approval by City Council. The Sacramento City Code Section 3.56.230 mandates that a 2/3 vote of the City Council is required to suspend competitive bidding when it is in the best interest of the City.
Continuing to contract with MWI Animal Health - Amerisource Bergen ensures that Animal Care Services continues to comply with California Civil Code § 1834 to provide necessary and prompt veterinary care and California Code of Regulations § 2030 for veterinary premises.
Economic Impacts: Not applicable.
Environmental Considerations: Not applicable. This is exempt from the California Environmental Quality Act (CEQA) because it does not have the potential for causing a significant effect on the environment. (CEQA Guidelines §15061(b)(3)).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: It is imperative that the Shelter have at minimum one large veterinary distributor of animal care products on contract. The Shelter must maintain all necessary veterinary equipment, supplies, and medication to remain compliant with the California Code of Regulations and California Civil Code.
File ID: 2024-00257 1/16/2024 Consent Item 8.
Shelters United is a two thousand plus strong cooperative buying program exclusively for nonprofit animal welfare organizations and municipal animal shelters. Their mission is to help nonprofit animal shelters and rescue groups save money by sourcing manufacturer and distributor discounts on products needed to heal, protect, and adopt out healthy pets. Shelters United has partnered with MWI Animal Health (Amerisource Bergen) as an exclusive distribution partner and negotiated a standard 4% savings on over a thousand products for shelters. In this calendar year, Animal Care Services has saved over $47,000 through this cooperative buying program.
MWI Animal Health (Amerisource Bergen) is one of the largest veterinarian distributors with more than 50K animal care products and 22 distribution facilities around the U.S. Most of the orders placed arrive the next business day. The Shelter’s required veterinary treatments can vary depending on animal intake. MWI’s order and delivery structure allow the Shelter to only order products as needed, reducing perishable medication waste. Continuing to contract with MWI Animal Health (Amerisource Bergen) through the Shelters United cooperative buying program ensures that Animal Care Services can maintain compliance for all California State Veterinary code requirements.
Financial Considerations: Due to the increasing cost of medical and veterinary supplies, the current agreement with MWI Animal Health (Amerisource Bergen) is not sufficient for the current fiscal year’s operational need. There is sufficient funding in the Fiscal Year (FY) 2023/24 Community Development Department Operating Budget and the F.O.C.A.S. (Friends of the City Animal Shelter) Multi-year Operating Project (I13000400) to fund Supplemental Agreement Number 3 of $300,000.
Existing funding in the Animal Care Services division operating budget is not sufficient to maintain current and future price increases related to veterinary services and supplies. Any future obligations or additional supplemental agreements will be subject to savings in future fiscal year budget appropriations in the departments operating budget.
Local Business Enterprise (LBE): MWI Animal Health (Amerisource Bergen) is not an LBE.
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)
Project Title and Job Number: Veterinary Supplies and Medications Date: 11/21/2023 Purchase Order #: Supplemental Contract No.: 3 The City of Sacramento ("City") and ______MWI – Animal Health_____("Contractor"), as parties to that certain GoodsAgreement designated as Contract Number _PRC002168_, including any and all prior supplemental contracts modifying the contract (the contract and all supplemental contracts are hereafter collectively referred to as the "Contract"), hereby supplement and modify the Contract as follows: 1. The Technical Specifications specified in Exhibit A of the Contract is amended as follows: Time of performance shall be extended through 07/31/2024. 2. In consideration of the additional and/or revised goods described in section 1, above, the maximum not-to-exceed amount that is specified in Exhibit B of the Contract for payment of Contractor's fees and expenses, is increased/decreased by _increased_, and the Contract’s maximum not-to-exceed amount is amended as follows: Agreement's original not-to-exceed amount: __$150,000Net change by previous supplemental contracts: _$95,000__ Not-to-exceed amount prior to this supplemental contract: __$245,000_ Increase/decrease by this supplemental contract: _$300,000 _ New not-to exceed amount including all supplemental contracts: _$545,000_ 3. Contractor agrees that the amount of increase or decrease in the not-to-exceed amount specified in section 2, above, shall constitute full compensation for the additional and/or revised goods specified in section 1, above, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection with such additional and/or revised goods, including costs associated with any changes and/or delays in schedules or in the provision of additional and/or revised goods or other work by Contractor. 4. Contractor warrants and represents that the person or persons executing this supplemental contract on behalf of Contractor has or have been duly authorized by Contractor to sign this supplemental contract and bind Contractor to the terms hereof. 5. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall provide all of the goods and perform all of the services, duties, obligations, and conditions required under the Contract, as supplemented and modified by this supplemental contract. [SIGNATURES ON FOLLOWING PAGE]
RESOLUTION NO. 2023-xxxx
Adopted by the Sacramento City Council
January 16, 2024
SUSPEND THE COMPETITIVE BIDDING PROCESS TO ADD ADDITIONAL
FUNDING FOR VETERINARY SUPPLIES AND MEDICATIONS WITH MWI ANIMAL
HEALTH (AMERISOURCE BERGEN)
BACKGROUND
A. The City of Sacramento Fr ont Street Animal Shelter (Shelter) is classified as a depositary for living animals and therefore bound by the California Civil Code. California Civil Code § 1834 states: “A depositary of living animals shall provide the animals with necessary and prompt veterinary care, nutrition, and shelter, and treat them kindly. Any depositary that fails to perform these duties may be liable for civil damages as provided by law.” If an animal enters the shelter and is sick or injured it must be treated.
B. The Shelter is a licensed State of California Veterinary Medical Board Veterinary Premise – license number 5855. As a registered veterinary premise, the Shelter is required to maintain the minimum standards of a fixed veterinary premise as defined in title 16 of the California Code of Regulations, § 2030. Under this code the Shelter is required to have any necessary and appropriate drugs and equipment to treat an animal emergency readily available. As a licensed premise that provides surgical services, the Shelter is also required to maintain the necessary surgical instruments, equipment, and sanitary supplies.
C. MWI Animal Health (Amerisour ce Bergen) is one of the largest veterinarian distributors with more than 50,000 animal care products and 22 distribution facilities around the U.S. Continuing to contract with MWI Animal Health (Amerisource Bergen) through the Shelters United cooperative discounted buying program ensures that Animal Care Services can maintain compliance for all state veterinary requirements.
D. City Code section 3.56. 230(c) authorizes the City Council to suspend competitive bidding for a contract when, upon a two-thirds vote, the City Council determines it is in the best interest of the City to do so.
E. Because the City is m andated to provide necessary and prompt veterinary care and maintain all minimum standards of a California fixed Veterinary Premise, it is in the City’s best interests to suspend competitive bidding, add additional funding, and continue to contract with MWI Animal Health (Amerisource Bergen).
F. BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE
CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. In the best interest of t he City, competitive bidding is suspended for veterinary supplies and medications with MWI Animal Health (Amerisource Bergen).