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APPROVE MOTION TO EXECUTE A THREE-YEAR AGREEMENT, WITH TWO (2) ADDITIONAL ONE (1) YEAR OPTIONS TO EXTEND WITH ALL CREATURES VETERINARY CLINIC FOR AFTER-HOURS VETERINARY HOSPITAL AND/OR EMERGENCY CARE
recommended action
RECOMMENDATION
It is recommended that City Council approve a motion to:
1. Authorize the City Manager to execute a three-year Standard Agreement with two (2) one-year options to extend between All Creatures Veterinary Clinic (All Creatures) and the City of Stockton (City) in an amount not to exceed $522,508.
2. Approve findings which support and justify an exception to the competitive bidding process pursuant to Stockton Municipal Code section 3.68.070(A)(3) where the City held a competitive Request for Proposals.
3. Authorize and direct the City Manager to make any and all expenditures and appropriations on behalf of the City as appropriate and necessary to carry out the purpose and intent of this motion.
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Summary
The Stockton Police Department (SPD) receives calls of stray, sick, and injured animals after hours. Since law enforcement officers are required by law to respond to sick and injured animals, there could be a significant impact to their calls-for-service, which also results in lengthy wait times for citizens standing by with the sick or injured animals, without the ability to transport the animal to an after-hours emergency clinic.
The Stockton Animal Shelter (the Shelter) does not operate on a 24-hour basis, requiring alternate arrangements for the after-hours care of injured animals. By contracting with after-hours and veterinary hospitals, the City better manages its obligations to provide emergency after-hours care and respond to sick or injured animals when staff at the Shelter are unavailable. For the last several years, the Shelter has contracted with service providers using a tiered veterinary care service schedule and associated fee structure. The current 6-month contract with All Creatures will expire on June 5, 2024, leaving the Shelter with an immediate need for a new contract.
The Shelter is seeking Council approval for a three-year agreement (Attachment A) with All Creatures in the amount of $313,505 with two (2) one-year options to extend for a total not to exceed amount of $522,508.
DISCUSSION
Background
Prior to 2016, the Shelter lacked the ability to control veterinary charges because there was no set standard of care and pricing. In 2016, Shelter staff designed a three-tiered veterinary care service schedule and associated fee structure. With the set fee structure and services to be provided, expenditures were easier to predict and control.
In 2018, Council approved two contracts for services, one with Family Pet Hospital and the other with All Creatures. Due to the lack of service provided, the contract with Family Pet Hospital was cancelled, resulting in higher intake of animals for All Creatures and the need for additional funding.
To ensure that the Shelter can send sick and injured animals to off-site veterinarians for treatment after-hours, a Request for Proposal (RFP) for new after-hours veterinary hospital and/or emergency care services was issued on July 19, 2018 to all Stockton veterinarians, animal hospitals, and emergency care veterinarians. Proposals were due on August 9, 2018, and only two were received, All Creatures and Family Pet Hospital. Family Pet Hospital and All Creatures Veterinary Emergency were accepted, and agreements were established with Resolution 2018-10-16-1107.
All Creatures was initially approved for a three-year agreement with a maximum not to exceed amount of $240,000 and an option to extend for an additional two years. In 2021, the contract extension of two additional years was approved along with increased funding not to exceed $85,800, making the total maximum not to exceed amount for the entire contract $325,800. When the contract with Family Pet Hospital was cancelled due to the lack of services provided, a higher intake of animals resulted for All Creatures, creating the need for additional funding for the remainder of the contract.
Present Situation
Additional RFP’s (PUR 23-033) and (PUR 24-008) for after-hours services were posted to Bid Flash on August 3, 2023, and on September 12, 2023, respectively, with no responses received. As a result, the Shelter entered into a six-month gap agreement with All Creatures for the remainder of Fiscal Year 2023-24 for a cost not to exceed $45,000 from December 2023 to June 5, 2024. This six-month agreement was issued with the intent to allow time for a new procurement and long-term contract to be approved through Council without a lapse in service. The Shelter is seeking approval for a three-year agreement with All Creatures in an amount of $313,505, with two (2) one-year options to extend for a total not to exceed amount of $522,508.
The 2022 Live Release Rate finished the year at 86%. The ability to maintain this level of live release is due, in part, to the accessibility of after-hours emergency veterinary care. Without providing adequate medical care, the vast improvements made to the Shelter’s Live Release Rate over the years would suffer. It is important not to have a lapse in after-hours veterinary services. While there is continued public support to increase the Live Release Rate and improve humane care and outcomes at the Shelter, this support must be balanced with the available funds to operate the Shelter.
Findings
Pursuant to SMC section 3.68.070, Council may approve findings which support and justify exceptions to the competitive bidding process. These findings include:
1. A contract with an after-hours veterinary hospital and/or emergency care clinic is necessary to provide medical care for sick and injured animals after-hours when the Shelter is closed.
2. The City does not have the staff to manage such operations and services, and hiring qualified staff to complete the outlined scope of services, compared to the contracted expense, would be cost prohibitive to the City.
3. No proposals were received by the noticed due date. Therefore, the City has negotiated to award the current contractor, All Creatures Veterinary Clinic, with the three-year agreement in accordance with the City’s approved General Procurement Policy 17.05.010, Section G-6, which authorizes executing an agreement to a supplier that was not involved in the formal solicitation process.
FINANCIAL SUMMARY
The total proposed cost is $313,505 for a three-year agreement with All Creatures. The agreement includes two (2) one-year options to renew in an amount not to exceed $522,508. Adequate expenditures have been appropriated in the FY 2024-25 Police Department General Fund Animal Services Account.
Attachment A - All Creatures Standard Agreement