REPORT TO THE CITY COUNCIL September 27, 2018 FROM: WILMA QUAN-SCHECTER, City Manager Mayor and & City Manager's Office LAURA GLORIA, Deputy City Manager Mayor and & City Manager's Office SUBJECT ..Title Approval of a Second Amendment to the Agreement entered between the City of Fresno and the Central California Society for the Prevention of Cruelty to Animals. ..Body RECOMMENDATION Staff recommends that the City Council approve the Second Amendment to the Agreement entered between the City of Fresno and the Central California Society for the Prevention of Cruelty to Animals in order to reflect up to a $213,000 increase approved by the City Council through the FY2019 budget motions. EXECUTIVE SUMMARY The Central California Society for the Prevention of Cruelty to Animals (CCSPCA) provides the City of Fresno (City) with all animal control, pound master, veterinary and animal sheltering services, and facilities per a contract entered in March of 2014 and effective through June 30, 2019. The CCSPCA submitted a budget increase request to cover minimum wages impacts. The requested amount of up to $213,000 was added through budget motions and subsequently approved in the FY2019 budget. BACKGROUND The current agreement with the CCSPCA has been in effect since March of 2014, since then, the CCSPCA has continued to provide the City with animal control services including animal control, pound master, veterinary and animal sheltering services. The CCSPCA's current contract for the aforementioned services consists of $3,803,300. Effective, January 1, 2017, the minimum wage for all industries will be increased yearly through January 1, 2023 for employers employing 26 or more employees. As such, the CCSPCA also requested a budget increase to cover salary increases and additional costs to address minimum wage increases. The requested amount of up to $213,000 was added as a budget motion and subsequently approved in the FY2019 budget. The Second Amendment provides for the addition of $184,951 to the current contract based on the detailed cost schedule provided by the CCSPCA. In the event that the CCSPCA requests additional funding over the $184,951 but under the $213,000 during the term of the current agreement, the City Manager will have the authority to administratively amend the contract to include remaining funding at her sole discretion, subject to CCSPCA providing an amended cost schedule. Staff recommends that the City Council approve the Second Amendment to the Agreement entered between the City of Fresno and the CCSPCA for the increased wage costs and to continue current level of service and scope through the one-year extension ending on June 30, 2019. ENVIRONMENTAL FINDINGS This is not a project under California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378. LOCAL PREFERENCE Local preference does not apply because this is an amendment to an existing agreement. FISCAL IMPACT The FY 2019 Budget included $3,803,300 to fund the contract through June 30, 2019. Subsequent Council motions added the additional $213,000. The detailed cost schedule submitted by the CCSPCA confirmed the amount of $184,951 for a total contract of $3,988,251. Attachment: Second Amendment to the Agreement including Cost Schedule