City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01431 9/17/2024 Consent Item 5.
Supplemental Agreement: Veterinary Laboratory Testing Services and Testing Supplies with IDEXX Laboratories
File ID: 2024-01431
Location: Citywide
Recommendation: 1) Pass a Motion authorizing the City Manager or City Manager’s designee to execute Supplemental Agreement No. 3 to City Agreement C2020-0287 with IDEXX laboratories in the amount not-to-exceed $275,000, bringing the total not-to-exceed amount to $605,000 veterinary laboratory testing services and supplies; and 2) 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 IDEXX Laboratories
Additional Description/Analysis
Issue Detail: Animal Care Services does not have sufficient funding left on contract C2020-0287 to pay for laboratory testing supplies and services for the remainder of the contract term. Staff is requesting authorization to execute Supplemental Agreement No. 2 to City Agreement C2020-0287 with IDEXX Laboratories for veterinary lab testing services and supplies in the amount not-to-exceed $275,000, bringing the total not-to-exceed amount to $605,000 for veterinary lab testing services and supplies.
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: 2024-01431 9/17/2024 Consent Item 5.
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.
Policy Considerations: Section 3.56.090 requires Council approval to authorize the City Manager to bind the City by contract for purchases that are $250,000 or more. Section 3.04.020 requires any single contract amendment that increases the contract amount by more than $250,000 requires city council approval. The recommendations in this report are consistent with Sacramento City Code Section 3.56 and 3.04.
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 the necessary veterinary lab equipment and services readily available to properly and accurately treat ill animals. As a licensed premise that provides surgical services, the Shelter is also required to maintain the necessary surgical instruments, equipment, and sanitary supplies.
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: The Shelter Veterinary team must have access to quick and accurate testing equipment and services. Veterinary lab testing helps determine how to proceed with a treatment path for a sick or injured animal.
On March 10, 2020, City Council approved Resolution 2020-0064 to suspend competitive bidding in the best interest of the City to contract with IDEXX for lab testing services and supplies. Through the IDEXX 360 program, Animal Care has obtained new testing equipment. Through the IDEXX 360 program, Animal Care receives an 8 - 50% discount off standard retail pricing on testing supplies.
The ability to perform the most common tests on site with results in minutes increases the speed veterinary staff can treat an animal.
For certain specimen samples that our onsite machine cannot process, IDEXX currently provides daily pickup services. Specimens are processed at their laboratory located in West Sacramento. The
File ID: 2024-01431 9/17/2024 Consent Item 5.
Shelter’s proximity to IDEXX’s testing lab helps ensure test results are received within 24 hours. To limit the exposure and contamination of infectious diseases within our shelter, animals who exhibit signs of contagious diseases or infections must be quarantined until their test results are received.
In addition to an increase in shelter animal intake, in 2022 the shelter launched The Homeless Outreach and Assistance Program (HOAP). The HOAP team includes a program coordinator, registered veterinary technicians, animal control officers, and other support staff. Services offered include vaccinations, microchips, arranging spay or neuter surgeries, in-the-field vet exams, assisting with veterinary care, distributing pet supplies, and more. The veterinary services provided through the HOAP program, in addition to nearly a 20% increase in shelter animal intake between 2022 and 2023, have increased the need for veterinary laboratory testing and testing supplies.
Financial Considerations: Due to the increasing cost of medical veterinary supplies and the increased volume of animals treated by shelter staff, the current contract agreement amount of $330,000 is insufficient for the remainder of the contract term through March 2026. There is sufficient funding in the Fiscal Year (FY) 2024/25 Community Development Department Operating Budget to fund Supplemental Agreement Number 2 of $275,000. Any future obligations or additional supplemental agreements will be subject to the department’s operating budget.
Local Business Enterprise (LBE): The minimum LBE participation requirement was waived by the Director of Community Development. Staff has determined the waiver is in the City’s best interest because of the absence of local suppliers and subcontractors making it impractical and not financially beneficial to the City.
CONTRACT ROUTING SHEETContract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.General Information (Required)Original Contract # (supplements only): ________ Supplement/Addendum #: ___________________Assessor’s Parcel Number(s): ________________________________________________________________Contract Effective Date: _________ Contract Expiration Date (if applicable): _________$ Amount (Not to Exceed): ______________________ Adjusted $ Amount (+/-): _____________________Other Party: ______________________________________________________________________________Project Title: _____________________________________________________________________________Project #: ____________________________________ Bid/RFQ/RFP #: ___________________________City Council Approval: if YES, Council File ID#: __________Contract Processing ContactsDepartment: ______________________________Contract Coordinator: _______________________Project Manager: _________________________________Department Review and Routing(Signature) (Date)(Signature) (Date)(Signature) (Date)(Signature) (Date)Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.)_______________________________________________________________________________________------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------ IDEXX Laboratories2Community Development03/10/2026Phillip [email protected]$275,000Veterinary Laboratory Testing Services and Testing Supplies2024-01431YESJennifer ChikasawaC2020-0287$605,000
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)
Project Title and Job Number: Veterinary Laboratory Testing Services and Testing Supplies Date: 06/30/2024 Purchase Order #: Supplemental Contract No.: 2 The City of Sacramento ("City") and IDEXX Laboratories("Contractor"), as parties to that certain Professional Services Agreement designated as Contract Number 2020-0287, 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 Scope of Services specified in Exhibit A of the Contract is amended as follows: No change to the scope of services or time of performance. 2. In consideration of the additional and/or revised services 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 by _$275,000_, and the Contract’s maximum not-to-exceed amount is amended as follows: Agreement's original not-to-exceed amount: $300,000Net change by previous supplemental contracts: _$30,000Not-to-exceed amount prior to this supplemental contract: $330,000 Increase by this supplemental contract: $275,000 New not-to exceed amount including all supplemental contracts: _$605,000 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 services 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 services, including costs associated with any changes and/or delays in schedules or in the delivery of other services 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 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]
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)
Approval Recommended By: Approved As To Form By: Project Manager City AttorneyApproved By: Attest:____________________________________Contractor City ClerkApproved By:Michael Jasso, Assistant City ManagerCity of Sacramento