HomeMy WebLinkAboutFresno Humane Animal Services-Mandated Animal Control Services_A-24-696 A-24-328 A-19-562.pdf COtj County of Fresno Hall of Records, Room 301
2281 Tulare Street
Fresno,California
601 Board of Supervisors 93721-2198
O� 1$56 0 Telephone: (559)600-3529
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www.fresnocountyca.gov
December 17, 2024
Present: 5- Supervisor Steve Brandau, Chairman Nathan Magsig,Vice Chairman Buddy Mendes,
Supervisor Brian Pacheco, and Supervisor Sal Quintero
Agenda No. 66. Public Health File ID: 24-1319
Re: Approve and authorize the Chairman to execute Amendment II to Agreement with Fresno Humane
Animal Services effective January 1, 2025,with no change to the term of January 1, 2020 to December
31, 2025, increasing the maximum compensation by$702,594 to a total of$12,476,280; and adopt
Budget Resolution increasing FY 2024-25 appropriations for the Department of Public Health Org
56204762 in the amount of$702,594(4/5 vote)
APPROVED AS RECOMMENDED
Ayes: 5- Brandau, Magsig, Mendes, Pacheco, and Quintero
Agreement No. 24-696, Resolution No. 24-404
County of Fresno Page 74
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Board Agenda Item 66
O 1856 O
FRE`'�
DATE: December 17, 2024
TO: Board of Supervisors
SUBMITTED BY: David Luchini, RN, PHN, Director, Department of Public Health
SUBJECT: Amendment II to Agreement with Fresno Humane Animal Services
RECOMMENDED ACTION(S):
1. Approve and authorize the Chairman to execute Amendment II to Agreement with Fresno
Humane Animal Services effective January 1, 2025, with no change to the term of January 1,
2020 to December 31, 2025, increasing the maximum compensation by$702,594 to a total of
$12,476,280; and
2. Adopt Budget Resolution increasing FY 2024-25 appropriations for the Department of Public
Health Org 56204762 in the amount of$702,594(4/5 vote).
There is a $702,594 increase in Net County Cost (NCC)associated with the recommended actions.
Approval of the first recommended action will allow the County to remit more adequate payments to Fresno
Humane Animal Services (FHAS)for the cost of services provided under the Agreement scope of work.
Approval of the second recommended action will increase the Department's appropriations for FY 2024-25
to account for an increase in NCC. While the animal shelter is located in District 1, services are provided
countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, the vendor will have to terminate the existing
agreement due to lack of sufficient County funding to provide the required services.
FISCAL IMPACT:
There is a $702,594 increase in NCC associated with the recommended actions, which will allow the
County to more adequately compensate FHAS for the cost of services provided under this agreement. The
additional NCC will be funded from Unassigned Fund Balance. As such, these funds are classified as
Unassigned for financial reporting purposes in compliance with Governmental Accounting Standards Board
(GASB)statement 54. The recommended amendment will increase the total maximum compensation of the
agreement from $11,773,686 to$12,476,280 and increase the FY 2024-25 appropriations in the amount of
$702,594 in the Department's Org 5620.
DISCUSSION:
On October 22, 2019, your Board approved Agreement A-19-562 with FHAS to serve as the County's
shelter-master and animal control agency, including animal care, field service operations, enforcing leash
laws, dog licensing and improving outcomes for animals taken into the County shelter. When the agreement
County of Fresno Page 1 File Number.24-1319
File Number:24-1319
was written, animal control operations were housed at the prior County morgue located at 760 W. Nielsen,
Fresno, California 93706 while the new County shelter was under construction. The Department projected
an increase in operational costs once the new shelter was complete and included language in the
Agreement that allows for a re-evaluation of FHAS' compensation after one year in the new shelter. FHAS
moved into the new shelter at 1510 West Dan Ronquillo Drive, Fresno, CA 93706 in April 2022.
In January 2024, the Department and FHAS began conducting a review of the operational costs to fulfill their
contractual obligations and determined the contract compensation was not sufficient.
On June 18, 2024, your Board approved Amendment I to Agreement A-19-562 with FHAS to reduce the
contract term by four years from the original term of January 1, 2020 through December 31, 2029 to January
1, 2020 through December 31, 2025, which decreased the overall maximum compensation from
$18,931,792 to$11,773,686. Additionally, Amendment I increased the FY 2023-24 and FY 2024-25
maximum compensation by$1,000,000 to remit more adequate payments to FHAS from January 2024 to
December 2025. In January 2025, the monthly advance reverts back to$142,901, as established in the
original Agreement budget.
On July 9, 2024, your Board approved Agreement A-24-387 with Hatching LLC (Hatching)to evaluate the
County's animal services program, including shelter and field operations, and provide recommendations for
appropriate funding and operational efficiencies. Hatching conducted a site visit at the County's animal
shelter from September 2, 2024 to September 6, 2024, during which time, Hatching observed shelter
operations and field services.
On November 6, 2024, Hatching provided the County with their preliminary findings and determined
$260,000 is the minimum necessary monthly payment to reimburse FHAS for costs incurred to fulfill the
Agreement scope of work. Without intervention, FHAS will face a shortfall in operating expenses, and will not
have adequate County revenue to continue providing crucial animal control, rabies control and shelter
services. Hatching anticipates submitting their full report to the County in December 2024.
Approval of the recommended action will allow the County to review Hatching's final report, re-evaluate the
animal services program, and develop all necessary procurement and contractual documents. The
Department plans to return to your Board with a new animal services agreement before July 1, 2025.
REFERENCE MATERIAL:
BAI #51, July 9, 2024
BAI #66, June 18, 2024
BAI #7, October 22, 2019
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk-Amendment 11 to Agreement with FHAS
On file with Clerk- Budget Resolution
CAO ANALYST:
Ronald W. Alexander, Jr.
County of Fresno page 2 File Number.24-1319
Agreement No. 24-696
1 AMENDMENT II TO AGREEMENT
2 THIS AMENDMENT, hereinafter referred to as Amendment II, is made and entered into this
3 17th day of December , 2024, by and between the COUNTY OF FRESNO, a Political Subdivision
4 of the State of California, hereinafter referred to as "COUNTY', and FRESNO HUMANE ANIMAL
5 SERVICES, a California Non-Profit Public Benefit Corporation, whose address is 2789 S. Orange
6 Avenue, Fresno, CA 93725, hereinafter referred to as "CONTRACTOR" (collectively the "parties").
7 WITNESSETH:
8 WHEREAS, on October 22, 2019, the COUNTY and CONTRACTOR entered into Agreement
9 No. 19-562 ("Original Agreement") for shelter-master, shelter and emergency veterinary services for
10 animal from the unincorporated areas of the County, pursuant to Food and Agricultural Code,
11 Sections 31105 and 31106, Penal Code, Section 597f, and Fresno County Ordinance Code,
12 Chapters 9.01 through 9.12; enforcement of dog licensing and animal control, pursuant to Fresno
13 County Ordinance Code, Chapters 9.04 through 9.12 and California State laws pertaining to animal
14 control; and
15 WHEREAS, the CONTRACTOR moved to the new animal shelter ("Shelter") located at 1510
16 West Dan Ronquillo Drive, Fresno, California 93706 in April of 2022, which has an increased capacity
17 of 159% from the previous shelter located at 760 W. Nielsen, Fresno, California 93706; and
18 WHEREAS, Clause 3 "Compensation for Services and Reimbursement of Expenses" of the
19 Original Agreement states a re-evaluation of shelter costs will be conducted one (1) year after the
20 completion of the Shelter, on or around April 2023. The Department of Public Health (DPH) and
21 CONTRACTOR did not have sufficient data at that time to accurately assess the operational costs or
22 expenditure trends; and
23 WHEREAS, in January 2024, DPH began an operational audit and concluded there is not
24 sufficient funding in the Original Agreement to support the Scope of Work activities. Subsequently, in
25 July 2024, the County entered into an agreement with animal services consultant, Hatching LLC, and
26 their evaluation determined a need to increase funding to CONTRACTOR.
27 NOW, THEREFORE, in consideration of their mutual covenants and conditions, the parties
28 hereto agree to amend the Agreement as follows:
1 - COUNTY OF FRESNO
Fresno,CA
1 1. That COUNTY Agreement No. A-24-328, Section Three (3) "COMPENSATION
2 FOR SERVICES AND REIMBURSEMENT OF EXPENSES", at Page Two (2), beginning with Line
3 Nineteen (19) "In" and ending on Page Two (2), Line Twenty-One (21) after the phrase "Exhibit B-1"
4 is replaced as follows:
5 "A. In consideration of CONTRACTOR's performance hereunder including services, and subject to
6 the terms and conditions herein, the COUNTY agree to compensate CONTRACTOR according to,
7 and in the manner provided in, the Compensation Schedule, attached hereto as Exhibit B-2."
8 2. That COUNTY Agreement No. A-24-328, Section Three (3) "COMPENSATION
9 FOR SERVICES AND REIMBURSEMENT OF EXPENSES", at Page Two (2), beginning with Line
10 Twenty-Six (26) "For" and ending on Page Three (3), Line Sixteen (16) after the word "provided" is
11 replaced as follows:
12 "c. For every 12-month term beginning with January 1, 2023 through December 31, 2025, a cost
13 of living adjustment based on the lesser of 3% or the then current Pacific Region Consumer Price
14 Index (CPI). In addition, CONTRACTOR will receive an increase of$1,000,000 in 2024 and
15 $702,594 in 2025 as follows:
16 Compensation Maximum (Table A)
17 Contract Period Maximum Compensation
18 Jan. 1, 2020 — Dec. 31, 2020 $1,788,986
19 Jan. 1, 2021 — Dec. 31, 2021 $1,668,317
20 Jan. 1, 2022 — Dec. 31, 2022 $1,765,008
21 Jan. 1, 2023— Dec. 31, 2023 $1,935,096
22 Jan. 1, 2024 — Dec. 31, 2024 $2,782,630
23 Jan. 1, 2025— Dec. 31, 2025 $2,536,243
24
25 In no event shall services under this Agreement be in excess of Twelve Million, Four Hundred
26 Seventy-Six Thousand, Two Hundred and Eighty and 00/100 Dollars ($12,476,280) during the term of
27 this Agreement. It is understood that all expenses incidental to CONTRACTOR's performance of
28 services under this Agreement shall be borne by CONTRACTOR. COUNTY's payments shall be
- 2 - COUNTY OF FRESNO
Fresno,CA
I made in advance (except for Emergency Veterinary Services, Contingency Fund, Disaster Plan, and
2 Sheriff's Office expenses) on the tenth (10t") day of each month for the month in which services are
3 provided."
4 3. The parties agree that this Amendment may be executed by electronic signature as
5 provided in this section. An "electronic signature" means any symbol or process intended by an
6 individual signing this Amendment to represent their signature, including but not limited to (1) a digital
7 signature; (2) a faxed version of an original handwritten signature; or (3) an electronically scanned
8 and transmitted (for example by PDF document) of a handwritten signature. Each electronic signature
9 affixed or attached to this Amendment (III) is deemed equivalent to a valid original handwritten
10 signature of the person signing this Amendment for all purposes, including but not limited to
11 evidentiary proof in any administrative or judicial proceeding, and (2) has the same force and effect
12 as the valid original handwritten signature of that person. The provisions of this section satisfy the
13 requirements of Civil Code section 1633.5, subdivision (b), in the Uniform Electronic Transaction Act
14 (Civil Code, Division 3, Part 2, Title 2.5, beginning with section 1633.1). Each party using a digital
15 signature represents that it has undertaken and satisfied the requirements of Government Code
16 section 16.5, subdivision (a), paragraphs (1) through (5), and agrees that each other party may rely
17 upon that representation. This Amendment is not conditioned upon the parties conducting the
18 transactions under it by electronic means and either party may sign this Amendment with an original
19 handwritten signature.
20 4. COUNTY and CONTRACTOR agree that this Amendment II is sufficient to amend the
21 Agreement; and upon execution of this Amendment II, the Agreement, Amendment I and Amendment
22 II together shall be considered the Agreement.
23 5. The Agreement, as hereby amended, is ratified and continued. All provisions, terms,
24 covenants, conditions and promises contained in the Agreement, and not amended herein, shall
25 remain in full force and effect. This Amendment II shall be effective January 1, 2025.
26 ///
27 ///
28 ///
- 3 - COUNTY OF FRESNO
Fresno,Cif
1 IN WITNESS WHEREOF, the parties hereto have executed this Amendment II as of the day
2 and year first hereinabove written.
3
CONTRACTOR COUNTY OF FRESNO
4 FRESNO HUMANE ANIMAL SERVICES
5
Authorized Signature Nathan Magsig, Chairman of the Board of
7 Supervisors of the County of Fresno
y� J 1
8 c (-./tC�ni1 / i k/tfll/ T2Pd%ckl�e
Print Name and Title
9 Date:_ 12• ��' ��
10
11 ATTEST:
Bernice E. Seidel
12 Clerk of the Board of Supervisors
County of Fresno, State of California
13
14 By:
15 Deputy
16
FOR ACCOUNTING PURPOSES ONLY:
17
Fund/Subclass: 0001/10000
18 Account/Program: 7295/0
19 Organization: 56204762
20
21
22
23
24
25
26
27
28
4 _ COUNTY OF FRESNO
Fresno,CA
FRESNO HUMANE ANIMAL SERVICES Exhibit B-2
COMPENSATION SCHEDULE
Jan 1,2020-Dec.31,2020 Jan 1,2021-Dec.31,2021 Jan.1,2022-Dec.31,2022 Jan.1,2023-Dec.31,2023 Jan.1,2024-Dec.31,2024 Jan.1,2025-Dec.31,2025
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Shelter Operations
Salaries $ 582,088 $ 599,551 $ 617,538 $ 636,064 $ 655,146 $ 744,800
Benefits $ 128,758 $ 132,621 $ 136,600 $ 140,698 $ 144,919 $ 179,267
ACT Space Rental $ 30,000 $ 30,000
Services&Supplies $ 276,593 $ 284,891 $ 293,438 $ 302,241 $ 661,308 $ 770,647
Spay/Neuter Program $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 100,000 $ 100,000
Feral Cat Program $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000
Vehicle Purchases $ 80,000
Vehicle Costs&Equipment $ 11,139 $ 11,473 $ 11,817 $ 12,172 $ 12,537 $ 12,913
Other $ 15,118 $ 15,572 $ 16,039 $ 16,520 $ 17,016 $ 17,526
Total Shelter Operations $ 1,123,696 $ 1,154,108 $ 1,235,432 $ 1,187,695 $ 1,620,926 $ 1,855,153
Field Services
Salaries $ 270,534 $ 278,650 $ 287,010 $ 295,620 $ 304,489 $ 353,624
Standby&Overtime $ 16,126 $ 16,610 $ 17,108 $ 17,621 $ 18,150 $ 31,289
Benefits $ 65,552 $ 67,519 $ 69,545 $ 71,631 $ 73,780 $ 75,993
Services&Supplies $ 5,941 $ 6,119 $ 6,303 $ 6,492 $ 56,687 $ 56,888
Vehicle Purchases $ 166,000 $ 202,000
Vehicle Costs&Equipment $ 35,699 $ 36,770 $ 37,873 $ 39,009 $ 40,179 $ 41,384
Other $ 2,652 $ 2,732 $ 2,814 $ 2,898 $ 2,985 $ 3,075
Total Field Services $ 562,504 $ 408,400 $ 420,653 $ 635,271 $ 496,270 $ 562,253
Total Shelter and Field Services $ 1,686,200 $ 1,562,508 $ 1,656,085 $ 1,822,966 $ 2,117,196 $ 2,417,406
Emergency Vet Services* $ 47,741 $ 49,173 $ 50,648 $ 52,167 $ 103,732 $ 55,344
Contingency Fund** $ 53,045 $ 54,636 $ 56,275 $ 57,963 $ 559,702 $ 61,493
Service provided to Sheriff's Office $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000
GRAND TOTAL $ 1,788,986.00 $ 1,668,317.00 $ 1,765,008.00 $ 1,935,096.00 $ 2,782,630.00 $ 2,536,243.00
$ 1,000,000.00 $ 702,594.00
*Emergency veterinary costs are paid by COUNTY upon approval of invoice remitted by FHAS in accordance with Agreement provisions.
**Contingency Funds shall provide for sudden or unantipated expenses required of FHAS by COUNTY. Anticipated expenditures should be approved by County in advance and requests for payment shall be invoiced.
Compensation for renewal periods years 2 and 3 shall increase at a rate of three percent(3%)from the prior year compensation,less purchases of new vehicles.
Budget Increase Summary
Current Maximum Amended Maximum Increase($) Increase(%)
CY 2024 $1,782,630 $2,782,630 $1,000,000 56%
CY 2025 $1,833,649 $2,536,243 $702,594 38%
Total $3 616 279 $5,318,873 $1 702 594 47%
Page 1
FRESNO HUMANE ANIMAL SERVICES Exhibit B-2
COMPENSATION SCHEDULE
Compensation Schedule
MonthlyAdvancel Emer enc Vet Contingency Vehicle Purchase Sheriff's Office Total
12 Monthly Payments January 2020-December 2020 1 126,683
TOTAL 1,520,200 47,741 53,045 166,000 2,000 1,788,986
12 Monthly Payments January 2021 -December 2021 130,209
TOTALI 1,562,508 1 49,173 54,636 2,000 1,668,317
12 Monthly Payments January 2022-December 2022 1 131,340
TOTALI 1,576,085 1 50,648 56,275 80,000 2,000 1,765,008
12 Monthly Payments January 2023-December 2023 1 135,081
TOTALI 1,620,966 1 52,167 57,963 202,000 2,000 1,935,096
6 Monthly Payments lianuary 2024-June 2024 138,933
6 Monthly Payments July 2024-December 2024 213,933
TOTALI 2,117,196 1 103,732 559,702 2,000 2,782,630
6 Monthly Payments JJanuary 2025-June 2025 260,000
6 Monthly Pa ments IJuly 2025-December 2025 142,901
TOTALI 2,417,406 1 55,344 61,493 2,000 2,536,243
Total Compensation 10,814,361 358,805 843,114 448,000 12,000 12,476,280
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