REPORT TO THE CITY COUNCIL FROM: ALMA G. TORRES, Deputy City Manager Office of Mayor & City Manager SUBJECT ..Title Approve the third amendment to the animal control services agreement between the City of Fresno and Fresno Humane Animal Services in the amount not to exceed $2,321,500 for a five-month term beginning July 1, 2023 to November 30, 2023. ..Body RECOMMENDATION Staff recommends that the City Council approve the third amendment to the animal control services agreement between the City of Fresno and Fresno Humane Animal Services (FHAS) to extend the current services agreement for a period not to exceed five months effective July 1, 2023, to November 30, 2023. EXECUTIVE SUMMARY In May of 2022, the city entered into a 14-month agreement with Fresno Humane Animal Services (FHAS) for the legally mandated animal control services and operation of the City's Animal Center. The agreement is set to expire on June 30, 2023. On April 26, 2023, the City received notice from FHAS of their intent to not renew the existing contract and the City began the processes necessary for transitioning the operations in-house. Due to the various steps that will be necessary to transition operations, including creating job titles, scopes, pay ranges, determining bargaining units, entering into vendor contracts and agreements, etc., the City anticipates that the process will not exceed more than five months. During this time, FHAS will continue to provide the services as previously agreed in the current contract without any changes to the current terms. BACKGROUND In May of 2022, the city entered into a 14-month agreement with Fresno Humane Animal Services to provide all animal control, pound master, veterinary and sheltering operations at the City's Animal Center facility and related activities authorized and required by applicable law including California Food and Agriculture Code sections 31105, 31106, California Penal Code section 597f and Fresno Municipal Code sections 10-301 to 10-329 to the City of Fresno (City). On April 26, 2023, FHAS notified the City of their intent to not renew the contract and of their willingness to extend the current contract to allow sufficient time for the City to transition the operations of the center internally. Staff has determined that due to the various processes that will be necessary to transition this operation to inhouse, such as creating the various job titles, job scopes, pay ranges, bargaining unit assignments, establishing contracts and agreements with vendors, a period of five months beginning on July 1, 2023 will be necessary to complete the transition. This amendment does not change any of the terms of the original agreement. Funding for this extension is included in the FY2024 Proposed Budget and Council action is necessary to continue to receive services and process reimbursements to FHAS. ENVIRONMENTAL FINDINGS This is not a project under California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378. LOCAL PREFERENCE Fresno Humane is considered local pursuant to Fresno Municipal Code Sec. 4-109. FISCAL IMPACT The FY 2024 Adopted Budget includes sufficient appropriations to support this extension. Attachment: Third Amendment to Services Agreement