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APPROVE MOTION TO AUTHORIZE A COOPERATIVE AGREEMENT WITH MWI FOR THE PURCHASE OF MEDICAL SUPPLIES FOR ANIMAL SERVICES
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RECOMMENDATION
It is recommended that City Council approve a motion to:
1. Authorize the City Manager to execute a Cooperative Agreement with MWI for the purchase of medical supplies in an amount not to exceed $1,044,193.08 over the term of the agreement.
2. Approve findings pursuant to Stockton Municipal Code Section 3.68.070 to support and justify an exception to the competitive bidding process.
3. Authorizing the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of the Resolution.
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Summary
Stockton Animal Services receives approximately 9,000 to 10,000 animals each year and has historically relied on MWI Veterinary Supply, Inc. as its primary medical supplier due to competitive pricing, strong product availability, and rapid delivery. Since Council’s prior authorization of $297,000 in December 2022, the Shelter has experienced a continued rise in animal intake, increased medical supply costs averaging 38%, and a growing number of sick and injured animals requiring more intensive treatment. Additionally, in partnership with Hard Luck Animal Welfare Advocates, the department has expanded its community-focused medical services, resulting in higher usage of veterinary medications, consumables, and other treatment resources.
As these needs have grown, the medical supply contract with MWI is no longer being pursued as a sole source procurement. Instead, Animal Services intends to utilize a cooperative purchasing agreement, which will allow the department to procure medications and medical supplies at a lower cost while ensuring continued access to essential veterinary products. Leveraging a cooperative agreement will help maintain consistent inventory levels across both the primary shelter and the City of Stockton Pet Adoption and Wellness Center, which now handles surgical procedures and expanded medical care.
To sustain humane, timely, and medically appropriate treatment for animals in custody and community pets receiving services, Animal Services is requesting a contract amount of $1,044,193.08 through the cooperative agreement. This adjustment is necessary to meet increased medical demands, support expanded operations across two facilities, and ensure the department can continue providing high-quality veterinary care.
DISCUSSION
Background
The Animal Services Division relies on MWI Veterinary Supply Company to provide the essential medical supplies needed to care for animals housed at the City’s Animal Shelter. The Shelter receives approximately 9,000 to 10,000 dogs and cats annually, many of whom arrive with urgent or complex medical needs. To maintain effective operations and ensure timely treatment, the Shelter must have consistent access to high-quality medical supplies, pharmaceuticals, and veterinary-related products.
California Health and Safety Code section 121690(e) requires cities and counties to maintain or provide for the maintenance of animal care and control services. MWI offers a comprehensive inventory of veterinary supplies that meet these operational and regulatory requirements. Their broad product range, competitive pricing, and dependable delivery schedules enable the Shelter to respond quickly to fluctuating intake levels, emergencies, and seasonal variations in animal care needs. By serving as a single, centralized supplier, MWI also reduces delays associated with working across multiple vendors and ensures that critical supplies are available when needed.
On May 23, 2017, City Council approved Motion 2017-05-23-1105, authorizing the purchase of medicines and other medical supplies exclusively through MWI in an annual amount of $215,000, and due to increased animal intake and an average 38% increase in MWI medical supply costs, the annual purchase amount was later adjusted to $297,000 by Council motion 2022-12-13-1205. As animal intake continues to increase, maintaining reliable access to veterinary supplies is critical to supporting humane care, sustaining live-release outcomes, and meeting state and industry best practices. For these reasons, MWI remains a vital partner in the continued operation of the City’s Animal Shelter.
Present Situation
Stockton Animal Services, in partnership with Hard Luck Animal Welfare Advocates, has significantly expanded the level of medical and support services available to shelter animals and to pets belonging to community members most in need. With the addition of the City of Stockton Pet Adoption and Wellness Center, the department now operates across two locations: the primary shelter, which focuses on intakes and daily care for incoming animals, and the Wellness Center, which concentrates on surgeries, medical treatment, and adoption preparation. Operating two facilities has substantially increased the department’s overall utilization of medical supplies, treatment medications, and other veterinary resources necessary to support shelter operations, foster programming, rescue coordination, offsite adoption activities, and enhanced medical care within the community.
The expansion of services has coincided with a continued rise in the intake of sick and injured animals requiring immediate medical intervention, diagnostics, and in many cases, extended care. These animals often present with conditions requiring high levels of treatment, including surgical procedures, advanced wound care, pain management, and ongoing medication. As a result, both facilities have experienced a significant increase in the consumption of essential veterinary medications, surgical supplies, medical consumables, and general treatment resources needed to support humane and effective care.
Due to the increased medical demands associated with operating two service locations and the department’s broadened community support initiatives, Stockton Animal Services is requesting an increase to the current medical supply contract amount. Ensuring adequate funding is critical to maintaining appropriate inventory levels and sustaining high-quality, timely medical care for both shelter animals and community pets who rely on these expanded services.
Findings
The Stockton Municipal Code Section 3.68.070 (A)(4) requires that to make a cooperative agreement exception to the competitive bidding process, the Council must adopt findings that support and justify the exception. The following facts are presented for the Council’s consideration for approval and adoption as findings in support of purchasing directly from MWI Veterinary Supply:
1. The Animal Shelter does not have the adequate storage capacity to purchase medical supplies in bulk to achieve volume discount pricing from smaller distributors.
2. Competitor vendors may carry some but not all necessary medications, vaccinations, and medical supplies, requiring multiple orders from more than one vendor.
3. Pricing comparisons between vendors reveal MWI Veterinary Supply provides the lowest cost for medical supplies most often ordered by the Animal Shelter.
4. The relatively short shelf life of most medications and the requirement for temperature-controlled medications prevent the Shelter from keeping a monthly supply on hand.
5. Without the ability to receive medication orders quickly, the Shelter would have to expend additional staff time and money to transport animals to a veterinary clinic to ensure that required medical care is received.
6. MWI competitively prices all its products at a largely discounted price compared to other vendors and offers free shipping and next-day delivery, which is very important due to limited storage space at the Animal Shelter.
7. MWI carries all the medication and medical supplies available, except items that must be purchased directly from the manufacturer.
FINANCIAL SUMMARY
The current annual estimated cost for purchasing medications and medical supplies from MWI Veterinary Supply, Inc. is $522,096.54. Funding for these expenditures is available in the FY 2026-2027 Police Department Other Special Revenue Fund, Pet Overpopulation Program, Animal Services Division, as well as the Police Department General Fund, Animal Shelter Program, Animal Services Division.