Westminster City Council
SUBJECT
Title
Approval of Amendment No. 2 to the Agreement for Animal Shelter Services in Fiscal Year.
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From: Darin Lenyi, Chief of Police
Requested by: Administration
Prepared by: Ron Weber, Deputy Chief
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RECOMMENDED ACTION
Recommendation
A. Approve Amendment No. 2 to the Agreement for Animal Shelter Services increasing its cost by $9,500 a month starting on June 1, 2024 costing an additional $9,500 in Fiscal Year 2023-2024 and $114,000 in 2024-2025 bringing the total contract cost for Fiscal Year 2024-2025 to $732,684 and authorizing the City Manager or her designee to execute the amended agreement; and
B. Approve the second option year renewal of the Agreement taking effect on July 1, 2024.
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BACKGROUND
On January 16, 2020, the City released a Request for Proposals (RFP) to initiate a competitive bidding process for animal shelter services. At their meeting on March 11, 2020, the City Council approved the award of a contract to Westminster Adoption Group and Services (WAGS) for the provision of animal shelter services. WAGS is a non-profit 501(c)(3) charitable organization. Their contract is for three years plus two one-year extensions, for a possible total contract term of five years. On July 1, 2024, the City will be able to exercise its second option to renew the WAGS contract for the fifth year.
WAGS has been the City’s animal shelter provider since 2011 and has consistently met the expectations outlined in the agreement. WAGS has been a part of the business community in the City for over 20 years and is centrally located approximately one mile from the Westminster Police Station. This is a significant advantage to Animal Control Officers (ACO) as it allows them to drop off animals at any time throughout their shift without leaving the city. The short distance between the police station and the WAGS shelter allows the ACOs to spend more time patrolling Westminster and Stanton as well as to complete administrative tasks at the police station. The shelter location is also convenient for Westminster and Stanton residents.
The agreement’s Scope of Work includes the provision of shelter facilities for all animals that are impounded or quarantined by Westminster Animal Control Officers for animals subject to the City’s jurisdiction. These facilities are operated and maintained on a 24-hour per day basis in a neat, clean, and sanitary condition; in compliance with all applicable governmental statutes, ordinances, rules, and regulations; and conformity with established standards for humane animal care. Their services also include animals impounded or quarantined from the City of Stanton, to whom Westminster provides contracted Animal Control and Shelter services. The contract terms also allow the City to continue to preserve its ability to retain related revenues. The contract with the City of Stanton ends on October 31, 2025, with the option of three additional one-year extensions.
On April 15, 2024, WAGS sent the City a letter stating they are giving their 60-day notice of terminating their contract with the City unless they are able to obtain a $9,500 a month increase to their contract price for the last month of the 2023-2024 contract and the final year (2024-2025) of the contract citing the following reasons:
• Animal intakes increased from 2019, WAGS had 2,219 animals compared to the animal count in 2022, which was 2,634 and grew to 2848 in 2023. For over seven years, WAGS has carried the burden of an over 180% increase going from 2016’s 1,008 animal intakes to 2023’s 2,848 which is 1,840 additional animal intakes. WAGS had to fundraise $120,000 to cover their operational cost increases.
• The dogs being brought to WAGS are mostly 1-3 years old and have not been socialized or have socially unacceptable behavior. WAGS has had to adjust by creating a new program B.E.T. - Behavior Enrichment Training to try to reduce the instances of euthanasia with caring cognitive rehabilitation for these dogs. Although B.E.T. is not the financial responsibility of the City, it does fall into the expectations of animal care post-COVID expectations of an animal shelter. The California standard is to reduce euthanasia in animal shelters.
• WAGS labor cost has jumped to well over 25%, consistent with other labor industries.
• A community issue is homelessness and poverty, thus having people relinquish their pets, primarily dogs, to WAGS, filling every kennel for most of 2023. WAGS has been at 65-85 dogs consistently for months. The cost of care for these dogs and the longer stays due to the lack of adoptions this year has eaten into WAGS’ budget.
• Workers' Compensation and insurance costs increased over 47%. Overhead and maintenance costs, rent, electricity, water, and facility maintenance continue to encumber the budget far worse than the previous years.
FISCAL IMPACT
With the $9,500 a month cost increase, the contract cost in Fiscal Year 2023-2024 will be $628,184 up from $618,684. In Fiscal Year 2024-2025, the $9,500 a month increase will raise the contract cost to $732,684. The requested increase will be included in the proposed budget for Fiscal Year 2024-2025 in Animal Control - Contractual account 32000-43090.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
Approve the $9,500 a month contract price increase in the City’s Animal Shelter Agreement in Fiscal Year 2023-2024 and in Fiscal Year 2024-2025 and exercise the second option to extend the contract effective July 1, 2024.
ATTACHMENTS
1. April 15, 2024, WAGS Letter
2. WAGS Contract - 1st Amendment
3. WAGS Contract - 2nd Amendment
REVIEWED BY
Erin Backs, Finance Director
Christian Bettenhausen, City Attorney
Christine Cordon, City Manager