HomeMy WebLinkAboutStaff Report 2304-1313CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, June 12, 2023
Council Chambers & Hybrid
5:30 PM
Agenda Item
13.Direction on Operating Model for Palo Alto Animal Shelter, Which May Include:
Negotiating A New Agreement with Pets In Need; Moving to In-House Service Delivery;
and/or Issuing a New Request For Proposals. CEQA Review – Not a Project Supplemental
Report added, Public Comments, Presentation
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Community Services
Meeting Date: June 12, 2023
Report #:2304-1313
TITLE
Direction on Operating Model for Palo Alto Animal Shelter, Which May Include: Negotiating A
New Agreement with Pets In Need; Moving to In-House Service Delivery; and/or Issuing a New
Request For Proposals. CEQA Review – Not a Project
RECOMMENDATION
Staff recommends the City Council discuss and provide direction to staff on future operations of
the Palo Alto Animal Shelter, which may include negotiating a new agreement with Pets in Need;
moving to in-house service delivery; and/or issuing a new request for proposals.
EXECUTIVE SUMMARY
In February 2022, the City Council directed staff to work with Pets-in-Need (PIN) toward
development of a new Agreement that would result in a long-term partnership for shelter
operations. City staff and PIN have been working collaboratively to develop a Term Sheet that, if
approved by the Council and PIN Board of Directors, would be the basis for a new five-year
Agreement for the period 2023 - 2027. Council discussed and provided feedback to staff on the
draft Term Sheet and overall animal shelter operations during a Study Session on March 27,
20231.
The terms included represent increased staffing and associated compensation to PIN with
proposed net cost of $1.3 million for the first year with an annual escalator equivalent to the
Consumer Price Index (CPI). The current Fiscal Year 2023 compensation is $0.7 million, the new
terms represent an increase of approximately $100%. The FY 2024 Proposed Operating Budget
anticipated increased cost for services and included additional funding of $0.5 million in FY 2024
for a total of $1.2 million. Based on the current term sheet, additional funding may be needed.
Other terms include an increase in the City’s capital investment to improve the shelter facility
1 City Council, March 27, 2023; Agenda Item #3; SR #2302-0940,
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82278
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and a minor reduction in scope of services. The FY 2024 Proposed Capital Budget included
additional funding of $1.5 million in the Animal Shelter Renovation capital project (PE-19002) for
estimated capital investment based on the current terms.
BACKGROUND
2 to operate the Palo Alto Animal Shelter. The term and
compensation of the current Agreement (Attachment A) include:
2 City Council, November 26, 2018; Agenda Item #13; SR #9822,
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2018/id-9822-pets-in-need.pdf?t=62179.92
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Key responsibilities of Pets in Need include:
•Animal Shelter Services including sheltering stray, abandoned, and owner
surrendered animals
•Medical Services including veterinarian services to shelter animals, vaccination
clinics, micro-chipping, and a low cost spay and neuter clinic
•Animal adoptions and foster program
•Operating schedules for shelter services, emergency veterinary
On November 15, 2021, Pets in Need (PIN) provided formal notification to the City that it would
exercise its right to terminate the Agreement without cause in 12 months’ time as allowed in
Section 19.2 of the Agreement. PIN stated that delays in completing the capital improvement
projects, particularly the new dog kennel building influenced their decision to terminate the
Agreement.
The City and PIN staff discussed how best to operate the Animal Shelter for the remaining term
of the Agreement and began exploring how to continue the partnership beyond the termination
date. On February 14, 20223, the City Council passed the following motion unanimously:
A.That as a condition for continuing good faith negotiations, that Pets in Need would
agree to extend the notice of termination six months beyond the current date;
B.Proceed with negotiations with Pets in Need for a long-term contract agreement for
animal services in Palo Alto;
C.Evaluate the necessary kennel size for community partners that we serve;
D.Include some form of trap and neuter program;
E.Include a small animal area in the renovation plans;
F.Assure that the contract agrees upon hours of operation and services provided;
G.That the parties agree to pursue a fundraising program to supplement existing capital
commitments for the shelter; and
H.Explore the transition to a new database.
The PIN Board supported extending the termination date for six additional months to end on May
15, 2023. At the Council Study Session4 on March 27, 2023, staff provided Council an update on
the status of contract negotiations with PIN and an opportunity for the Council to provide
feedback on a draft Term Sheet. As a point of comparison, City staff included a preliminary
estimate of the cost and revenue associated with bringing operations of the Animal Shelter back
to an in-house model. PIN and City staff continue to refine the Term Sheet and mutually agreed
to extend the current agreement to terminate on September 30, 2023. City Staff have completed
a more detailed analysis of an in-house model.
3 City Council, February 14, 2022; Agenda Item #9; SR #13952,
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81766
4 City Council, March 27, 2023; Agenda Item #3; SR #2302-0940,
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82278
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ANALYSIS
March 27 Study Session
The City Council discussed and provided feedback on the draft term sheet during a study session
on March 27, 2023. The Council requested information on the following:
•A breakdown of PIN’s costs showing the increased compensation from the original
Agreement.
•The percentage of PIN’s operating budget that is for animals covered in Palo Alto, Los
Altos, and Los Altos Hills.
•A comparison chart of PIN’s fees with other municipal shelters’ fees.
•A more detailed and accurate comparison of PIN’s services to the Peninsula Humane
Society.
•PIN’s revenue over the previous five years.
•Consideration of a minimum and maximum number of surgeries and events.
•A side-by-side comparison of PIN’s proposal and the in-house model.
•A more defined capital plan identified in the Agreement.
•Additional information on feral cats and the method by which they are handled.
PIN has prepared responses to the Council’s questions, which are included as Attachment B. An
analysis of the costs and resources needed to move back to an in-house shelter operation is
described below, along with a comparison of the two operating scenarios. Additional information
on shelter improvements and feral cats are also included.
Term Sheet with Pets in Need, as revised
The Term Sheet that was presented to Council at the March 27th Study Session has been revised
to reflect re-negotiated terms since receiving feedback from the City Council. The revisions
included are shown in Attachment C as either underline or strikethrough and include updated
language related to developing a policy on how feral cats will be handled, and more specificity
on prioritization of capital improvements.
PIN has added an additional term to address City compensation for additional services rendered
each month beginning June 1, 2023 until a new contract is executed. PIN calculates this as the
difference between the monthly fee (1) specified for Year 5 in Exhibit B of the 2019 Agreement
and (2) the monthly fee specified for Year 1 in the proposed new Agreement, effective June 1,
2023. This cost equates to $55,535 per month in additional compensation beginning June 1, 2023
and each month until a new Agreement is executed.
The total annual compensation proposed by PIN for operations of the Animal Shelter is $1.4
million with an annual escalator based on the Consumer Price Index. A summary of the Term
Sheet as compared to the current Agreement is below.
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2019-2023 PIN
Agreement
2023-2027 PIN
Proposed
Increased Cost to
City
Expense / (Revenue)
Compensation
Shelter Services and 60
spay/neuter surgeries per month
$703,580
in year 5 (2023)
$1,373,400/
year (year 1)
$669,820/
year
Annual Escalator 2%Annual CPI rate To be negotiated
Additional Interim Compensation None $55,535/ month
as of June 2023
$55,535/ month as
of June 2023
Capital Improvements
City investment $3.4M
(approx. $1M
remaining)
$2.5M +$1.5M one-time
investment
Limit on PIN investment in
additional projects
Up to $10,000 No limit, must
follow prevailing
wage and other
laws, and obtain
City approval
$0
Staff time to
review and
approve
Renovation Delays $60,000 $0 $0
Scope of Work Changes
After-hours veterinary care for
stray hold animals
Included in scope Not in scope $15,000/
year
Veterinary services for cruelty
investigations
Included in scope PIN has
discretion
$10,000/
year
Licensing Included in scope Not in scope,
Add 0.48 City
staff
$40,000/
year
Licensing revenue To PIN To City ($180,000)/
year
Net Annual Cost to the General
Fund (excluding capital, annual
escalator and interim
compensation)
$773,580 $1,373,400 $554,820
Analysis of an In-house Operating Model
The City Council requested that staff further evaluate the cost of returning shelter operations in-
house as a service delivery alternative to PIN. Attachment D summarizes the costs, services, and
implementation strategy for both operating models (PIN and In-House) and a third alternative,
to issue a new Request for Proposals.
The proposed staffing model needed to safely operate the animal shelter requires the addition
of 7.00 full-time positions and two 0.48 FTE (total 0.96 FTE) hourly positions. The costs for these
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positions and the recommended position classifications are based on staff research of expected
pay ranges based on regional market surveys modeled with the City’s benefit rate cost
assumptions. The organizational chart in Attachment E includes:
PROPOSED STAFFING MODEL SHELTER SERVICES*
Position FTE Hourly Estimated Cost
(Salary and Benefits)
Total 7.00 2 staff
(0.96 FTE)$1,166,000
* The position classifications previously used by the City to perform in-house services are not maintained in the
City's current salary schedules. Staff expects to refine these estimates upon formal review by the Human
Resources Department.
**This would not be an additional new cost; this is a reallocation of existing management resources to support
oversight.
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PIN, the City has maintained and updated the animal services fees in the municipal fee schedule
for their operations. Should operations return to the in-house model, staff expect a fee study will
be needed to ensure charges are up to date and in line with other municipal shelters and City
costs.
Comparison of Annual Cost Net Impact to the General Fund
FY 2024
Budget
2023-2027 PIN
Proposed
In-House Operating
Model
Net Cost $3.7M $3,758,400
($1.3M ongoing)
$1,046,000
Organizational impacts of In-House model
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Scope of Services
•Public Hours of Operation: Both PIN and the In-House model propose about 80 hours
biweekly of public serving hours.
o PIN opens to the public M-F 12:30PM-6PM, Sat 10AM-6PM, Sun 12:30-6PM.
o In-House model schedule would be M-F 8AM-5PM, 9/80 Friday closed.
•Impounds/Intakes: Both PIN and the In-House model would not have a cap or additional
fees incurred for impounds or intakes.
•Licensing: In both scenarios, the City would provide licensing services requiring the City
to hire part-time staffing to support this at an estimated cost of $40,000. Revenues from
these services would be returned to the City to defray costs.
•Spay/Neuter: Both PIN and the In-House model will support some level of spay/neuter
services.
o PIN states that it will provide spay/neuter services to the best of its ability
prioritizing residents of Palo Alto, Los Altos, and Los Altos Hills. The Term Sheet
assumes PIN will complete a minimum of 60 surgeries per month for cats and
dogs only. The 2019 Agreement did not include a metric for the number of
surgeries to be completed by PIN.
o In-House model proposes about 150 spay/neuter surgeries per month, made
possible by having a full-time Veterinarian on staff and includes cats, dogs, and
other small pets. This number is based on the number of surgeries completed
when the City previously operated the shelter.
•Vaccine Clinics: Both PIN and In-House model propose weekly vaccine clinics available
to Palo Alto residents.
•After Hours Vet Care: Neither PIN nor the In-House model have a Veterinarian on staff
24 hours a day, therefore after-hour emergencies would require outside services at
cost, currently estimated at $15,000.
•Cruelty Investigations:
o PIN would provide veterinary care for live animals impounded as part of
cruelty investigations; however, PIN would not have the obligation to provide
additional services related to cruelty investigations including post-mortem
examinations of deceased animals. If PIN does not provide these services, the
City would contract out these services at an estimated cost estimated at
$10,000 annually.
o In-House model includes cruelty investigations and post-mortem services at
no additional cost.
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Capital Improvements to Shelter
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Other Considerations
•A slightly lower shelter operational cost, but higher infrastructure needs.
•With services and staffing being contracted out, there would be no liability or pension
obligations to the City.
•PIN has an extensive network, including partner organizations, which can be leveraged
for donations.
•With broader reach, serving the Bay Area and beyond, PIN could maximize use of the
shelter; however, careful consideration should be given to Palo Alto residents and its
contract cities.
•Policy decisions are a collaboration between PIN and the City.
•Slightly higher estimated operational cost than PIN, including pension costs and liability.
•An In-House model returns animal welfare and shelter operation policy decisions to the
City.
•City would have control over shelter operations including public service hours, vaccine
clinics, and spay/neuter surgeries.
•Services focused on the needs of Palo Alto residents and those of its contract cities.
•Increased revenue to partially offset shelter estimated operation costs
FISCAL/RESOURCE IMPACT
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operating agreement at $1.4 million. This expense is expected to be offset by adjustments to
increase revenue estimates by $180,000 to recognize licensing fees. Staff expects to bring
forward budget amendments as necessary in subsequent staff reports or budget processes.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
CITY OF PALO ALTO CONTRACT NO. _C_1_9_17_4_4_9_3 __ _
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND PETS IN NEED
FOR PROFESSIONAL SERVICES
This Professional Services Agreement ("Agreement") is entered into on this
..1.L day of January .~by and between the CITY OF PALO ALTO, a California
chartered municipal corporation ("CITY'' or "City of Palo Alto"), and PETS IN NEED, a
California non-profit public benefit corporation, located at 871 Fifth Ave, Redwood City, CA
94063 C'CONSULTANT' or "Pets In Need").
RECITALS
The following recitals are a substantive portion of this Agreement and are hereby
incorporated herein by this reference.
A. CITY intends to provide animal sheltering and veterinary care, as more fully
described in Exhibit "A" (Scope of Services), attached to and made a part of this
Agreement, for the City of Palo Alto, and for the City of Los Altos and the Town of Los
Altos Hills (the "Contract Cities"), at the Palo Alto Animal Shelter, 3281 East Bayshore
Road, Palo Alto, CA 94303 (the "Palo Alto Animal Shelter" or the "Premises").
B. CITY and CONSULTANT desire for CONSULTANT to perform the Services
{as defined below) at the Palo Alto Animal Shelter pursuant to the terms and conditions
set forth in this Agreement.
C. CITY acknowledges that CONSUL TANT is entering into this Agreement in
furtherance of its no-kill mission, and that, to the extent permitted by law, CONSUL TANT
will operate the Palo Alto Animal Shelter as a no-kill shelter.
D. CITY and CONSUL TANT are entering into this Agreement with the intention
of establishing a long -term partnership to offer exceptional shelter services for Palo Alto
and its partner cities of Los Altos and Los Altos Hills, while working together towards
building a new Pets in Need Palo Alto animal shelter facility.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and
conditions, in this Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSUL TANT shall perform the services described
at Exhibit "A· ("Services") in accordance with the terms and conditions contained in this
Agreement.
SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution
(the "Effective Date") and continuing for five (5) years from the Effective Date, unless
terminated earlier pursuant to Section 19 of this Agreement. The term of this Agreement
may be renewed or extended upon the mutual written agreement of the parties. One year
prior to the expiration of the term (or other such timeline as may be mutually agreed upon
by the parties), either party may request the parties to begin negotiating in good faith a
renewal or extension of this Agreement.
Page 1 of25
SECTION 3. USE OF PREMISES. CONSUL TANT's use of the premises shall be subject
to the additional terms set forth on Exhibit "D" (Use of Premises) attached hereto.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services shall be in the amount of, and shall not
exceed three-million, four-hundred forty thousand six-hundred twenty six dollars and ten
cents ($3,440,626.1 O) as detailed in Exhibit "B" (Compensation). CONSUL TANT agrees to
complete all Services within this amount. Any work performed or expenses incurred for
which payment would result in a total exceeding the maximum amount of compensation
set forth herein shall be at no cost to the CITY. Notwithstanding the foregoing, a
contingency fund of two-hundred thousand dollars ($200,000) (the "Contingency Fund")
shall be available; as well as a fund for the compensation of renovation delays
("Compensation of Renovation Delays Fund") of sixty thousand dollars ($60,000) shall be
available, as detailed in Exhibit "B" (Compensation). In the event the Contingency Fund
and the Compensation of Renovations Delays Fund are utilized as provided for herein, the
total compensation for Services, reimbursable expenses and the costs payable by CITY to
CONSULTANT under this Agreement, shall be and shall not exceed three million, seven
hundred thousand, six-hundred twenty-six dollars and ten cents ($3,700,626.10) as
detailed in Exhibit "B" (Compensation), subject to Section 19 ("TERMINATION OR
SUSPENSION OF AGREEMENT OR SERVICES").
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall invoice the
CITY for payment on a monthly basis. Invoices shall describe the services performed
and, if reasonably requested by CITY, supporting documentation. CONSULTANT's
invoice shall be submitted to the City's project manager for payment at which point the
CITY has 30 business days from the date of the submission to render payment to the
CONSUL TANT. Invoices must also include CONSUL TANT name, address, contract
number, description of services, date of services, and compensation amount.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be
performed by CONSUL TANT or under CONSUL TANT's supervision. CONSUL TANT
represents that it possesses the professional and technical personnel necessary to
perform or supervise, as applicable, the Services required by this Agreement and that its
personnel have sufficient skill and experience to perform the Services assigned to them.
CONSULTANT represents that it, and its employees have and shall maintain (and that it
shall require its subcontractors, if any, to have and maintain) during the term of this
Agreement all licenses, permits, qualifications, insurance and approvals of whatever
nature that are legally required to perform the Services .
Notwithstanding anything to the contrary in this Agreement, the representations and
warranties in this Section 6 are exclusive and are in lieu of all other warranties of any kind ,
whether express or implied (including, without limitation, the implied warranties of
merchantability, fitness for a particular purpose and noninfringement, and all warranties
that may arise from course of dealing, course of performance or usage of trade), all of
which are hereby expressly disclaimed.
SECTION 7. COMPLIANCE WITH LAWS. CONSUL TANT shall keep itself informed of
and in compliance with all federal, state and local laws, ordinances, regulations, and
orders that are applicable to the performance of the Services or those engaged to perform
Services under this Agreement. CONSUL TANT shall procure all permits and licenses, pay
all charges and fees, and give all notices required by law in the performance of the
Services .
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SECTION 8. ERRORS/OMISSIONS. CONSUL TANT is solely responsible for costs ,
including, but not limited to, increases in the cost of Services, arising from or caused by
CONSUL TANT's errors and omissions, including, but not limited to, the costs of correcting
such errors and omissions, any change order markup costs, or costs arising from delay
caused by such errors and omissions or unreasonable delay in correcting such errors and
omissions.
SECTION 9. [RESERVED].
SECTION 10. INDEPENDENT CONTRACTOR . It is understood and agreed that in
performing the Services under this Agreement CONSULTANT, any person employed by
CONSULTANT, and any subcontractor retained by CONSULTANT to perform any of
CONSULTANT'S obligations under this Agreement, shall act as and be an independent
contractor and not an agent or employee of CITY.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSUL TANT shall not
assign or transfer any interest in this Agreement nor the performance of any of
CONSULTANT's obligations without the prior written consent of the City Manager. The
City Manager shall have sixty (60) days from receipt of Consultant's notice of proposed
assignment to accept or decline the proposed assignment in writing. If the City Manager
declines the proposed assignment, he or she shall state the basis for the decision in the
written notice to CONSULTANT. Consent to one assignment shall not be deemed to be
consent to any subsequent assignment. Any assignment not expressly contemplated
ui:,der this Agreement, or made without the approval of the City Manager shall be void .
SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that
subcontractors may be used to perform CONSULTANT'S obligations under this
Agreement. The subcontractors authorized by CITY to perform work on this Project are:
a. Sage Veterinary Center; and
b. Pets Rest Cemetery, and
c. Any other subcontractors retained by CONSUL TANT to perform
CONSULTANT'S obligations under this Agreement.
CONSULTANT shall be responsible for directing the work of any subcontractor and for
any compensation due to subcontractors. CITY assumes no responsibility whatsoever
concerning subcontractor compensation .
CONSULTANT shall be fully responsible to CITY for all acts and omissions of a
subcontractor as more fully set forth in Section 16 of this Agreement.
CONSULTANT shall change or add a subcontractor to perform the Services set forth on
Exhibit A hereto only with the prior approval of the City Manager or his designee (such
approval not to be unreasonably withheld, delayed or conditioned). The City Manager
shall have thirty (30) days from receipt of CONSULTANT's request to approve or decline
in writing CONSULTANT's request to change or add subcontractors .
SECTION 13. PROJECT MANAGEMENT. CONSULTANT shall assign its executive
director, who currently is Al Mollica, as the project manager to have supervisory
responsibility for the performance, progress, and execution of the Services and as the
project coordinator to represent CONSULTANT during the day-to-day performance of the
Services. If circumstances cause the substitution of the project manager (including if, at
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any time, Al Mollica no longer serves as executive director of CONSULTANT).
CONSUL TANT shall promptly notify the CITY's project manager of such substitution and
consider in good faith CITY's requests with respect to such substitution.
The parties agree that during the term of this Agreement and for all purposes of this
Agreement, CONSULTANT'S project manager shall be authorized to act as the
"Superintendent" of the City's animal services division pursuant to Section 6.04.100 of the
Palo Alto Municipal Code, for purposes of [Sections 6.12.010, 6.12.030, 6.12.050,
6.16.050, and 6.32.040 of the Palo Alto Municipal Code.
CITY's project manager is the Director of Community Services, Community Services
Department, 1305 Middlefield Road, Palo Alto, CA 94303, Telephone (650) 463-4900,
who is currently Monique leConge Ziesenhenne. The project manager shall be
CONSULTANT's point of contact with respect to performance, progress and execution of
the Services. CITY may designate an alternate project manager from time to time with
prompt written notice to CONSUL TANT.
SECTION 14. INTELLECTUAL PROPERTY RIGHTS.
14.1 Definition of Intellectual Property Rights. "Intellectual
Property Rights" means patents of any type, design rights, utility models or other similar
invention rights, copyrights, mask work rights, trade secret or confidentiality rights,
trademarks, goodwill, trade names, logos and service marks and any other intangible
property rights, including applications and registrations for any of the foregoing, in any
country, arising under statutory or common law or by contract and whether or not
perfected, now existing or hereafter filed, issued, or acquired.
14.2 "Pets In Need" Ownership. The parties acknowledge and
agree that, as between the parties, Pets In Need owns all Intellectual Property Rights in its
name ("Pets In Need"), logos and marks, as may be amended from time to time by Pets In
Need .
14.3 "City of Palo Alto" Ownership. The parties acknowledge
and agree that, as between the parties, the City of Palo Alto owns all Intellectual Property
Rights in its name ("City of Palo Alto"), logos and marks, as may be amended from time to
time by the City of Palo Alto, and in accordance with Palo Alto Municipal Code as may be
amended from time to time.
14.4 "Palo Alto Animal Shelter" Ownership. The parties
acknowledge and agree that, as between the parties, the City of Palo Alto owns all
Intellectual Property Rights in the name "Palo Alto Animal Shelter".
14.5 Grant of License by City of Palo Alto. The City of Palo
Alto hereby grants to Pets In Need a royalty-free, non-transferable term license, for the
term of this Agreement, to use, reproduce, make derivative works, display, and perform
publicly the name "Palo Alto Animal Shelter" solely in conjunction with "Pets in Need", for
example, and without limitation, "Pets in Need Palo Alto Animal Shelter" and "Palo Alto
Animal Shelter, operated by Pets in Need," for purposes of the performance of this
Agreement, as provided for herein.
14.6 Name Changes; Development of Logos or Marks. Any
name changes, derivative works, or logos or marks as may be developed by Pets In Need
with regard to such animal shelter are required to be approved in writing by the City of
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Palo Alto City Manager or designee prior to any publication, or any other public use, in any
form or media. The City Manager shall approve or deny such requests in writing within 45
days of receipt of CONSULTANT's complete written proposal, and shall set forth its basis
for any denial in writing. During the term of this Agreement, the City of Palo Alto shall not
change such name of such animal shelter, nor develop any derivative works, or logos or
marks, with regard to such animal shelter, except as is mutually agreed in writing with the
Pets In Need Executive Director or designee prior to any publication, or any other public
use, in any form or media. The City Manager shall approve or deny such requests within
45 days of Consultant's complete written proposal, and shall set forth its basis for any
denial in writing. Notwithstanding anything to the contrary in this Agreement, CITY agrees
that CONSULTANT may offer naming rights for any wing, room, kennel, or other area
within the shelter in compliance with the City's Naming Policy and Procedure.
· 14.7 Limitations on uPets In Need Palo Alto Animal Shelter".
The City of Palo Alto agrees that its use of the name "Pets In Need Palo Alto Animal
Shelter", and as may be changed as provided for herein, with regard to the animal shelter
that is the subject of this Agreement, as well as any logos or marks that may be developed
and approved as provided for herein with regard to such shelter, are strictly limited to the
term of this Agreement, and that, unless otherwise agreed by the parties in writing, upon
expiration or termination of this Agreement, the City of Palo Alto shall cease and desist all
use of such names, logos and marks with regard to such animal shelter in relation to the
ongoing operation of such shelter as of the date of such termination or expiration.
14.8 Use of City of Palo Alto Seal or Logo. Any use by Pets In
Need of any City of Palo Alto seal or logo is required to be approved in writing by the City
of Palo Alto City Manager or designee prior to any publication or any other public use, in
any form or media, and in accordance with Palo Alto Municipal Code as may be amended
from time to time, provided that the City Manager or his designee shall approve or deny in
writing a written request by Pets in Need within ten (10) days of the date of the request,
and shall set forth his or her basis for any denial in writing.
14.9 Use of Pets in Need Seal or logo. Any use by the City of
Palo Alto of any Pets In Need seal or logo is required to be approved in writing by the Pets
In Need Executive Director or designee prior to any publication, or any other public use, in
any form or media, provided that the Executive Director of PIN or designee shall approve
or deny in writing a written request by CITY within twenty (20) days of the date of the
request.
14.10 Reservation of Rights. All Pets In Need Intellectual
Property Rights not expressly granted under this Agreement are reserved to and retained
by Pets In Need . All City of Palo Alto Intellectual Property Rights not expressly granted
under this Agreement are reserved to and retained by the City of Palo Alto.
SECTION 15. AUDITS. CONSUL TANT shall permit CITY to audit, at any reasonable
time during the term of this Agreement and for three (3) years thereafter, CONSULTANT's
records pertaining to CONSULTANT'S performance of the Services under this Agreement.
CONSUL TANT further agrees to maintain and retain such records for at least three (3)
years after the expiration or earlier termination of this Agreement.
SECTION 16. INDEMNITY; LIMITATION OF LIABILITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall
indemnify , defend and hold harmless CITY, its Council members, officers, employees and
Page 5 of25
agents (each a "CITY Indemnified Party") from and against any and all third party
demands, claims, or liability of any nature, including death or injury to any person,
property damage or any other loss, including all costs and expenses of whatever nature
including reasonable attorneys' fees, experts fees, court costs and disbursements
("Claims") to the extent resulting from, or arising out of (i) any act or omission of
CONSULTANT that is outside the scope of CONSULTANT's authority under this
Agreement and/or (ii) the negligence or willful misconduct of CONSULTANT or its officers,
employees, agents or subcontractors in the performance of this Agreement. To the fullest
extent permitted by law, CITY shall indemnify, defend and hold harmless CONSUL TANT,
its directors, officers, employees and agents (each a "CONSULTANT Indemnified Party")
from a·nd against any and all third party Claims to the extent resulting from or arising out of
(i) the negligence or willful misconduct of CITY or its officers, employees, agents or
subcontractors in the performance of this Agreement , (ii) any condition in or about the
Premises, except to the extent caused by the negligence or willful misconduct of
CONSULTANT or a CONSUL TANT Indemnified Party. or (iii) CITY's decision to transition
to a consultant-provided service delivery model and City's decision, based on
CONSULT ANT's representations contained in its proposal to the City and herein, to
contract with CONSULTANT to provide the Services.
16.2. In the event of concurrent negligence of more than one
party, its Council members (or directors), officers, employees, agents or subcontractors,
the liability for any and all Claims shall be apportioned under the California theory of
comparative negligence as presently established or as may hereafter be modified.
Nothing in this Agreement shall constitute a waiver or limitation of any rights that a party
may have under applicable law in the event of concurrent negligence of persons or entities
other than the parties to this Agreement.
16.3. The parties agree to cooperate with each other in the
investigation and disposition of third-party Claims hereunder. It is the intention of the
parties to reasonably cooperate in the disposition of all such Claims. Such cooperation
may include joint investigation, defense and disposition of claims of third parties
hereunder. The parties agree to promptly inform one another whenever an incident report,
claim or complaint is filed or when an investigation is initiated concerning this Agreement.
Notwithstanding the foregoing, in the event of a conflict in interest, each party may
conduct its own investigation and engage its own counsel.
16.4. Each party agrees to mitigate any loss or damage which it
may suffer in consequence of any breach by the other party of the terms of this
Agreement. or any fact, matter, event or circumstance giving rise to a Claim.
16.5. LIMITATION OF LIABILITY. N01WITHSTAND1NG
ANYTHING TO THE CONTRARY CONTAINED HEREIN OR ELSEWHERE, NEITHER
PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL,
CONSEQUENTIAL, INDIRECT, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES,
INCLUDING BUT NOT LIMITED TO LOST PROFITS IN CONNECTION WITH THIS
AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
ANY SUCH POTENTIAL CLAIM , LOSS OR DAMAGE .
16.6. LIMITATION OF LIABILITY OF CITY. EXCEPT WITH
REGARD TO CITY'S OBLIGATIONS TO INDEMNIFY AND HOLD HARMLESS THE
CONSULTANT PURSUANT TO THIS SECTION 16, CITY'S PAYMENT OBLIGATIONS
UNDER THIS AGREEMENT SHALL BE LIMITED TO THE PAYMENT PROVIDED FOR
IN SECTION 4 (NOT TO EXCEED COMPENSATION) OF THIS AGREEMENT.
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16.7. LIMITATION OF LIABILITY OF CONSULTANT. IN NO
EVENT SHALL THE TOTAL AGGREGATE LIABILITY UNDER THIS AGREEMENT OF
CONSULTANT TO CITY EXCEED FIVE MILLION DOLLARS.
16.8. CITY represents and warrants that (i) it has complied with
Section 2.30.250 of the Palo Alto Municipal Code and (ii) the CITY's indemnification
obligations contained in this is Section 16 represent the valid and enforceable obligations
of CITY.
SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any
covenant, term, condition or provision of this Agreement, or of the provisions of any
ordinance or law, shall not be deemed to be a waiver of any other term, covenant,
condition, provisions, ordinance or law, or of any subsequent breach or violation of the
same or of any other term, covenant, condition, provision, ordinance or law. No waiver of a
condition or nonperformance of an obligation hereunder is effective unless it is in writing
signed by the authorized representatives of the parties hereto and, as applicable,
approved as required under the Palo Alto Municipal Code or Charter.
SECTION 18. INSURANCE. CONSULTANT, at its sole cost and expense, shall obtain, as
soon as practicable following the date of this Agreement, and maintain, in full force and
effect during the term of this Agreement, the insurance coverage described in Exhibit "C".
CONSULTANT shall be responsible for ensuring that its subcontractors retained to
perform Services under this Agreement, if any, shall obtain and maintain in full force and
effect during the term of the subcontractor's engagement, the insurance coverage
described in Exhibit "C," as well as a policy endorsement naming CITY as an additional
insured under any policies required in this Section 18.
18.1. All insurance coverage required hereunder shall be provided
through carriers with AM Best's Key Rating Guide ratings of A-VII or higher which are
licensed or authorized to transact insurance business in the State of California.
18.2. CONSUL TANT shall file with CITY certificates evidencing
such insurance as soon as practicable following the date of execution of this Agreement
but in any event prior to the first day any of CONSULTANT'S obligations are performed
hereunder. The certificates shall be subject to the approval of CITY's Risk Manager and
shall contain an endorsement stating that the insurance is primary coverage and shall not
be canceled, or materially reduced in coverage or limits, by the insurer except after filing
with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or
modification. If the insurer cancels or modifies the insurance and provides less than thirty
(30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager
written notice of the cancellation or modification within five (5) business days of the
CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring
that current certificates evidencing the insurance are provided to CITY's Chief
Procurement Officer during the entire term of this Agreement.
18.3. The procuring of such required policy or policies of insurance will not be
construed to limit either party's liability hereunder nor to fulfill the indemnification
provisions of this Agreement.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may terminate this Agreement or suspend
Page 7 of25
the performance of the Services, in whole or in part, in the event of a material breach of
CONSULTANT's obligations to CITY under this Agreement, which breach is not cured by
CONSULTANT within (60) days of receipt of written notice from CITY to CONSULTANT
detailing the nature of such failure. The City Manager may terminate this Agreement
without cause by giving one-year prior written notice thereof to CONSUL TANT.
19.2. CONSUL TANT may terminate this Agreement or suspend
its performance of the Services, in whole or in part, in the event of a material breach of
CITY's obligations to CONSULTANT under this Agreement, which breach is not cured by
CITY (i) with respect to material breach of CITY's payment obligations herein, within thirty
(30) days of receipt of written notice from CONSULTANT to CITY, or (ii) with respect to
material breach of all other CITY obligations hereunder, within sixty (60} days of receipt of
written notice from CONSUL TANT to CITY detailing the nature of such breach .
CONSULTANT may terminate this Agreement without cause by giving one-year prior .
written notice thereof to CITY.
19.3. In the event of any suspension or termination hereunder,
CITY shall pay CONSULTANT for the Services rendered and materials delivered to CITY
(i) on or before the effective date of such suspension or termination and (ii) in accordance
with this Agreement. CITY shall pay such amounts to CONSULTANT within thirty (30)
days after receipt of CONSULTANT's invoice. To the extent that CITY has prepaid any
fees, CONSULTANT shall fund to CITY any prepaid fees on a pro-rata basis to the extent
such fees are attributable to the period after the termination date, and CITY shall have no
obligation to pay unpaid fees that would have become due during the remaining Term had
this Agreement not been terminated .
19.4 The following Sections shall survive any expiration or termination of
this Agreement: 14, 15, 16, 17, 19.3, this 19.4, 20, 25, and 27.
SECTION 20. NOTICES. Any notice provided for in this Agreement shall be in writing and
shall be either (i} personally delivered, (ii) received by certified mail, return receipt
requested, or (iii) sent by reput~ble overnight courier service (charges prepaid) to the
recipient at the address indicated below.
To CITY: City of Palo Alto, City Manager's Office
250 Hamilton Ave., Palo Alto, CA 94301
With a copy also to the CITY's Project Manager.
To CONSULTANT: Attention of the project director at the address of CONSULTANT
recited above .
Notices will be deemed to have been given hereunder {i) when delivered personally to the
recipient, (ii) one (1) business day after being sent to the recipient by reputable overnight
courier service (charges prepaid) or (iii) five (5) business days after being mailed to the
recipient by certified or registered mail, return receipt requested and postage prepaid .
SECTION 21. CONFLICT OF INTEREST
21.1. In accepting this Agreement, CONSUL TANT covenants that
it presently has no interest, and shall not acquire any interest, direct or indirect, financial or
otherwise, which would conflict in any manner or degree with the performance of the
Services.
Page 8 of 25
21.2. CONSUL TANT further covenants that, in the performance of
this Agreement, it shall not employ subcontractors or other persons or entities
having such an interest. CONSULTANT celtifies that no person who has or will have any
financial interest under this Agreement is an officer or employee of CITY; this provision
shall be interpreted in accordance with the applicable provisions of the Palo Alto Municipal
Code and the Government Code of the State of California.
21.3. CITY agrees and acknowledges that, as of the date of
hereof, CONSULTANT is not a "Consultant" as that term is defined by the Regulations of
the Fair Political Practices Commission, and that therefore CONSULTANT shall not be
required to file the financial disclosure documents required by the Palo Alto Municipal
Code and the Political Reform Act.
SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section
2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person because of the race, skin color, gender,
age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital
status, familial status, weight or height of such person. CONSUL TANT acknowledges that
it has read and understands the provisions of Section 2.30.51 O of the Palo Alto Municipal
Code relating to Nondiscrimination Requirements and the penalties for violation thereof,
and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in
employment.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONSULTANT shall comply with the CITY's Environmentally
Preferred Purchasing policies which are available at CITY's Purchasing Department (and
copies of which have been provided to CONSULTANT by CITY), incorporated by
reference and may be amended from time to time. CONSULTANT shall comply with waste
reduction, reuse, recycling and disposal requirements of CITY's Zero Waste Program .
Zero Waste best practices include first minimizing and reducing waste; second, reusing
waste and third, recycling or composting waste. In particular, CONSULTANT shall comply
with the following zero waste requirements:
(a) All printed materials provided by CONSUL TANT to CITY generated from a
personal computer and printer including but not limited to, proposals, quotes,
invoices, reports, and public education materials, shall be double-sided and printed
on a minimum of 30% or greater post-consumer content paper, unless otherwise
approved by CITY's project manager. Any submitted materials printed by a
professional printing company shall be a minimum of 30% or greater post
consumer material and printed with vegetable based inks.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in
accordance with CITY's Environmental Purchasing Policy including but not limited
to Extended Producer Responsibility requirements for products and packaging. A
copy of this policy is on file at the Purchasing Division's office, and a copy of the
current policy has been provided to CONSULTANT by CITY.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no
additional cost to CITY, for reuse or recycling. CONSULTANT shall provide
documentation from the facility accepting the pallets to verify that pallets are not
being disposed.
Page 9 of 25
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSUL TANT shall comply with all requirements of the Palo Alto Municipal Code
Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In
particular, for any employee otherwise entitled to the State minimum wage, who performs
at least two (2) hours of work in a calendar week within the geographic boundaries of the
CITY, CONSUL TANT shall pay such employees no less than the minimum wage set forth
in Palo Alto Municipal Code section 4.62.30 for each hour worked within the geographic
boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices
regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal
Code section4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions
of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement
shall terminate without any penalty (a) at the end of any fiscal year in the event that funds
are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in
the event that funds are only appropriated for a portion of the fiscal year and funds for this
Agreement are no longer available. This section shall take precedence in the event of a
conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS
CONTRACTS. The Services are not subject to prevailing wages . CONSULTANT is not -
required to pay prevailing wages in the performance of the Services in accordance with
applicable law including without limitation SB 7 .
SECTION 27. MISCELLANEOUS PROVISIONS.
27 .1. This Agreement shall be governed by the laws of the State
of California without regard to its conflict of laws provisions .
27 .2. In the event that an action is brought, the parties agree that
trial of such action shall be vested exclusively in the state courts of California in the
County of Santa Clara, State of California .
27 .3. The prevailing party in any action brought to enforce the
provisions of this Agreement may recover its reasonable costs and attorneys ' fees
expended in connection with that action. The prevailing party shall be entitled to recover
an amount equal to the fair market value of legal services provided by attorneys employed
by it as well as any attorneys' fees paid to third parties.
27.4 . This document represents the entire and integrated
agreement between the parties and supersedes all prior negotiations, representations,
and contracts, either written or oral. This document may be amended only by a written
instrument, which is signed by the parties .
27 .5. The covenants, terms, conditions and provrsrons of this
Agreement shall apply to, and shall bind, the heirs, successors, executors, administrators,
assignees, and consultants of the parties.
27.6 . If a court of competent jurisdiction finds or rules that any
provis ion of this Agreement or any amendment thereto is void or unenforceable, the
unaffected provisions of this Agreement and any amendments thereto shall remain in full
force and effect.
Page 10 of 25
27.7. All exhibits referred to in this Agreement and any addenda,
appendices, attachments, and schedules to this Agreement which, from time to time, may
be referred to in any duly executed amendment hereto are by such reference incorporated
in this Agreement and shall be deemed to be a part of this Agreement.
27.8. In the event of a conflict between the terms of this
Agreement and the exhibits hereto or CONSULTANT's proposal (if any), this Agreement
shall control. In the case of any conflict between the exhibits hereto and CONSULTANT's
proposal, the exhibits shall control.
27.9. If, pursuant to this contract with CONSULTANT, CITY shares
with CONSULTANT personal information as defined in California Civil Code section
1798.81.S(d) about a California resident ("Personal Information"}, CONSULTANT shall
maintain reasonable and appropriate security procedures to protect that Personal
Information, and shall inform CITY as soon as practicable, but no later than 24 hours after
learning that there has been a breach in the security of the system or in the security of the
Personal Information. CONSULTANT shall not use Personal Information for direct
marketing purposes without CITY's express written consent.
27 .10. All unchecked boxes do not apply to this Agreement.
27 .11. The individuals executing this Agreement represent and
warrant that they have the legal capacity and authority to do so on behalf of their
respective legal entities.
27.12. This Agreement may be signed in multiple counterparts,
which, when executed and delivered by the parties hereto, shall together constitute a
single binding agreement. This Agreement may be signed using the City's Docusign
platform .
{signature page follows]
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CONTRACT No. Cl9174493 SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized
representatives executed this Agreement on the date first above written.
CITY OF PALO AL TO PETS IN NEED
City Manager
Officer 2
APPROVED AS TO FORM:
By~
Attachments:
EXHIBIT "A":
EXHIBIT "B":
EXHIBIT "C":
EXHIBIT "D":
.. .
Name: ,. ;-A
Title~·,#'/c0~
SCOPE OF SERVICES
COMPENSATION
INSURANCE REQUIREMENTS
USE OF PREMISES
Page 12 of 25
EXHIBIT 11 A"
SCOPE OF SERVICES
PETS IN NEED ("CONSULTANT") agrees to provide Animal Shelter Services as
described in Section II below at the Palo Alto Animal Shelter, 3281 East Bayshore Road,
Palo Alto, CA, for the City of Palo Alto ("CITY") and the Contract Cities . CITY agrees to
perform the obligations as described in Section Ill below.
I. DEFINITIONS The following terms as used in this Exhibit "A" Scope of Services
shall have the meaning provided below:
A . "Diseased and crippled animal" means those animals which are
known or believed to be infected with a~y dangerous or
communicable disease, or which have an incurable , crippled
condition or which are afflicted with any painful disease which is
believed to be incurable .
B. "Dangerous animal" means any dog or other animal which
demonstrates a propensity to assault, bite, scratch or harass people
or other animals without provocation. There shall be a rebuttable
presumption that any animal that bites a person is a dangerous
animal.
Capitalized terms used but undefined herein shall have the meanings set forth in
the Agreement for Professional Services (this "Agreement") to which this Exhibit is
attached and of which it forms a part.
II. PETS IN NEED RESPONSIBILITIES:
1. Animal Shelter Services. CONSUL TANT shall perform the following
sheltering services and shall provide shelter supplies, animal
attendants , supervisors and administrative personnel, and any other
personnel, supplies and equipment, reasonably required to perform the
following services ("Shelter Services"):
a) Shelter of abandoned, surrendered, impounded, lost or
stray domestic animals brought to the shelter by CITY or its
Contract Cities, its residents, or personnel.
b) CONSULTANT may shelter and provide services to
animals outside the scope of paragraph (a) above rnon-City
animals") including moving animals between the Palo Alto
Animal Shelter and Pets In Need Redwood City facility on a
space-available basis and at CONSULTANT's sole expense
for all costs, including labor, equipment, supplies, food, and
medication . At no time shall animals within the scope of
paragraph (a) above be denied services due to services
provided to non-City animals at the Pets in Need Palo Alto
Animal Shelter.
c) For the avoidance of doubt, to the maximum extent
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permissible by law, CONSUL TANT shall have exclusive
discretion over how long an animal is sheltered, including
exclusive discretion to shelter an animal for a longer period
than the statutory minimum number of days This section shall
not be interpreted to authorize funds in addition to those
specified in this Agreement, and CONSULTANT shall be
responsible for managing the length of animal sheltering within
the funds and resources authorized by this Agreement.
d) Quarantine of biting animals.
e) Rabies testing of suspect animals.
f) Provision for reclaim of abandoned, lost or stray domestic
animals during established business hours.
g) Shelter staff shall make every effort to identify lost animals
(through ID tags and microchips) and to contact owners.
h) Be CITY's and Contract Cities' main point of contact (by
phone, in-person, and electronic means) regarding animal
shelter services, including inquiries regarding missing pets.
i) Provide medical evaluation and treatment, if necessary,
to all incoming animals. This includes vaccinations, and
spay and neuter surgeries to domestic animals.
j) Euthanasia and disposal of abandoned, lost, impounded, or
stray domestic animals that are unclaimed by their owners
and found to be diseased and crippled and/or dangerous as
defined by Palo Alto Municipal Code and California State Law.
k) For purposes of clarity, CONSUL TANT shall not be
required to provide owner-requested euthanasia at any time,
and CITY acknowledges that CONSUL TANT has elected not
to provide or subcontract this service.
I} CONSULTANT shall maintain a public website, separate from
the CITY's website, with information including without
limitation: shelter hours, volunteer opportunities, adoption
information, medical services offered and information about
those services and contact information.
m} Consultant shall allow CITY Animal Control Officers
access to the shelter at all times for purposes of dropping
off animals and provide reasonable accommodation for
Animal Control Officers to begin and end their shifts, and
complete administrative work in the shelter.
n) CONSULTANT shall maintain, repair and replace all
surgical room equipment, cages, hoses, and other
equipment at the facility.
o) CONSULTANT shall comply with all federal, state, and
local laws in effect applicable to the Services upon
commencement of the provision of the Services, and shall
be subject to inspection by the CITY and other duly
authorized federal, state, and local authorities to insure
Page 14 of 25
such compliance. This includes the applicable provisions of
Palo Alto Municipal Code Title 6, as amended from time to
time. For the avoidance of doubt, this provision shall not be
construed to expand the scope of the Services as
expressly set forth in this Exhibit "A".
p) CONSULTANT shall use commercially reasonable efforts to
offer comprehensive volunteer and educational programs which
may include, without limitation: animal fostering programs, dog
walker programs, and animal care trainings.
q} When appropriate, in CONSULTANT'S sole discretion,
CONSULTANT may partner and/or coordinate with adoption
programs, rescue groups, and other no-kill shelters to maximize
the shelter's adoption rate and/or place animals in suitable
foster care. CONSULTANT shall seek CITY's approval for
partnerships in which CONSUL TANT pays or receives money
or other financial consideration, solely to the extent that such
partnership relates to CONSULTANT's performance of the
Services. CITY shall approve or deny in writing any such
request within thirty (30) days after receipt of such request.
r) Develop and maintain communication with CITY by:
1. Responding in a timely.manner to emails and phone
calls.
2. Communicating and resolving issues and concerns
promptly.
s} Develop, in cooperation with CITY, a feral cat plan.
The plan shall include how PIN handles feral cats, spay/neuter
provisions, and release of feral cats. CONSULTANT shall not
release feral cats within the City of Palo Alto or any of its
Partner Cites.
t) Develop, in cooperation with CITY, a disaster preparedness plan .
2. Medical Services
a) CONSUL TANT shall provide supplies, and professional and
trained personnel, employed or under subcontract or
contract, necessary to perform the following services
("Medical Services"): Provision of veterinarian services
twenty-four (24} hours per day to treat and provide
veterinarian care for impounded animals, including for
animals picked-up by Animal Control Officers.
CONSULTANT may, in its sole discretion and at its sole
expense, arrange after-hours emergency care through any
veterinary subcontractor.
b) Monitor quarantined animals.
c) For a fee, conduct vaccination clinics and have available,
free of charge to the public, rabies control information.
d) Conduct microchipping.
e) For a fee, which shall be posted on CONSULTANT's website,
Page 15 of 25
at the same rate established for City residents and Contract
Cities, provide access to the CONSULTANT's low cost spay
and neuter clinic.
f) The City's Animal Control Officers shall be licensed through
CONSULTANT'S medical authority to administer euthanasia
as necessary for animals that are unclaimed by their owners
and found to be diseased and crippled and/or dq11gerous as
defined by Palo Alto Municipal Code.
g) Comply with all laws requiring reporting of animal-borne
diseases, including rabies. This includes Municipal Code
section 6.32.020, as amended from time to time .
3 . Operating Schedules
a) CONSUL TANT shall provide Shelter Services for the animals
twenty-four (24) hours a day, seven (7) days a week.
b) CONSULTANT shall provide emergency veterinary services in
accordance with Section 597(f) of the California Penal Code .
c) CONSULTANT shall have shelter staff on site for care of shelter
animals seven (7) days per week, 365 days per year.
d) CONSULTANT shall have business offices and public access
areas of shelter to be open to the public on a schedule designed to
benefit the public and facilitate the services established in this
Agreement, provided that the public hours and access be a
minimum of six (6) days per week and forty (40) hours per week .
CONSULTANT shall post the public hours on its website, and
inform CITY and Contract Cities in writing of any change in hours .
e) CITY acknowledges and agrees that, until the renovations
described in Exhibit Dare completed, CONSUL TANT may be
unable to be fully staffed and operational in accordance with this
Paragraph 3, and may request to operate at a reduced schedule at
its reasonable discretion. Consultant's project manager shall make
any such request to City's project manager, whose consent shall
not be unreasonably denied, delayed, or conditioned.
f) CONSUL TANT shall observe the following holiday closures for
public hours:
January 1 (New Year's Day)
Martin Luther King's birthday
Memorial Day
July 4th (Independence Day)
Labor Day
Thanksgiving Day
Day after Thanksgiving
Christmas Eve (1/2 Day)
Christmas Day
4 . Dead Animal Services
a) CONSULTANT shall provide storage facilities, disposal
Page 16 of 25
mechanisms, administrative personnel, and any other personnel,
supplies and equipment reasonably required to perform the
following services ("Dead Animal Services"):
i. Identification of and notification to the owner of the dead
animal, whenever possible; and
ii. Disposal of the body of the dead animal. CONSUL TANT shall
offer animal owners the option to pay for cremation services,
in which case, CONSUL TANT shall arrange for cremation with
the appropriate subcontractor.
b) CONSULTANT shall subcontract with one or more
subcontractors for the maintenance of a dead animal storage
facility as well as collection of dead animals and maintenance of
the facility and equipment, all at CONSULTANT's sole expense.
5. Wildlife
a) The impoundment of wildlife shall be managed by CONSUL TANT
staff. An assessment of wildlife shall be done by medical staff, if
necessary. If the animal is severely injured or sick, a licensed
veterinarian shall be consulted, and the case shall be fully
documented in accordance with AVMA guidelines. This
Agreement assumes that all wildlife animals will continue to be
transferred to the Peninsula Humane Society at no cost to the
CITY or to CONSUL TANT, as set forth in the Memorandum of
Understanding between CONSUL TANT and Peninsula Humane
Society dated November 17, 2017. Should Peninsula Humane
Society request fees for wildlife intake, CONSULTANT and the
CITY shall negotiate in good faith to amend this Agreement per
Section 27 .4 herein, to provide for the reimbursement by CITY to
CONSULTANT of such fees (upon documentation of such fees by
CONSULTANT reasonably satisfactory to CITY).
6. Records Management
a) CONSUL TANT and CITY's Animal Control shall maintain joint
access to the Chameleon database, as provided for in this section .
CONSUL TANT is responsible for keeping the Chameleon
database updated in a timely fa~hion. Chameleon data is
designated "For Official Use Only," meaning, CONSUL TANT may
only use such data for the performance of this Agreement, and not
for marketing or any other purposes without the prior written
consent of the CITY's City Manager or designee. Annual
maintenance fees for the Chameleon software shall be paid by
CITY. Repair and replacement cost of the server and supporting
hardware, if any, shall also be paid by CITY. CONSUL TANT shall
not have access to certain areas of the database, such as saved
criminal information (as required by law). CITY shall work with the
database programmer/vendor to ensure that such areas of the
Page 17 of 25
database are not accessible by CONSULTANT. All data entered
into the Chameleon database by any party shall be property of
CITY.
b) Monthly Report
i. CONSUL TANT shall deliver to CITY during the term of
this AGREEMENT, and within thirty (30) days of the end
of each month, a monthly Animal Shelter and Impound
Report summarizing monthly and year-to-date services
provided by CONSULTANT for CITY. This report shall
include, but not be limited to, the following information:
( 1) Licensing statistics
(2) Medical statistics including spay and neuter,
microchips, and vaccinations
(3) Volume of animals in and out of facility by type of
animal and type of outcome.
(4) For each animal, which city in which it was picked up
(if known).
c) Financial Reporting
i. CONSULTANT shall deliver to CITY during the term of this
Agreement, and within ninety (90) days of the end of each
May, an audited financial report covering CONSULTANT's
operation of the Palo Alto Animal Shelter.
d) Retention of Records, Right to Monitor and Audit
i. CONSUL TANT shall maintain records relating to
CONSUL TANT's operation of the Palo Alto Animal Shelter
for a period of four (4) years after the expiration or
termination of this Agreement or until any audits or reviews
are completed, whichever comes later, and such records
shall be subject to examination and/or audit of CITY, a
Federal granter agency, and the State of California for a
period of four (4) years after the expiration or termination of
this Agreement or until any audits or reviews are completed,
whichever comes later.
ii. Records/accounts relating to CONSULTANT's operation of
the Palo Alto Animal Shelter shall be open and accessible
to inspection upon reasonable notice during normal
business hours throughout the term of this Agreement and
for a period of four (4) years thereafter or until any audits
or reviews are completed, whichever comes later.
iii. Parties, upon request by either party to the other, shall meet
on occasion to consider revisions which may be needed to
the reporting forms created to document performance of the
Services provided.
7. Fundraising, Marketing and Branding
a) CONSULTANT shall create and manage fundraising, marketing,
volunteer development and education programs. Local volunteer
Page 18 of 25
groups shall be integrated into fundraising and other activities and
events when reasonably possible. The "Pets In Need Palo Alto
Animal Shelter" shall be the initial brand name of the shelter to be
operated by CONSULTANT pursuant to this Agreement, and any
logo or name change shall be approved in writing by
CONSUL TANT and the CITY's City Manager or designee prior to
use.
8. Licensing and other fee collection
a) CONSULTANT shall charge fees for services according to the
CITY's municipal fee schedule or according to state or local laws.
Fees for any services not covered by CITY's municipal fee
schedule or state or local laws shall be set by CONSUL TANT.
CONSUL TANT shall take CITY's comments into consideration
when setting such fees. CITY shall take CONSUL TANT's
comments into considefation when setting its municipal fee
schedule.
b) CONSUL TANT shall manage dog licensing including processing,
issuance, and renewals on behalf of CITY and Contract Cities.
Licensing information shall be included on all Incident Reports and,
additionally, provided to CITY on an as requested basis.
CONSULTANT shall collect all associated license fees on behalf of
CITY, at the fee amounts set by CITY. Licensing includes the
licensing of dogs as defined in Municipal Code Chapter 6.16 as
amended from time to time.
c) CONSUL TANT shall process citation fees, and shall remit 100%
of these fees to the CITY on a quarterly basis. PETS IN NEED
shall process and retain all other fees and revenues, including
without limitation adoption fees, spay, neuter, impoundment,
permit, license, and other fees as listed in the municipal fee
schedule.
9. Contract Cities; WeCare Alliance
a) CITY and CONSULTANT shall provide services to the City of Los
Altos and the Town of Los Altos Hills (the "Contract Cities 0 )
pursuant to the CITY's amended Regional Animal Care and
Control contracts approved by City Council on June 2, 2014.
These contracts are valid through June 30, 2019 with an option for
an additional five-year extension . The Parties agree that this
Agreement assumes that the Contract Cities' contracts will be in
effect during the entire term of this Agreement.
b) CITY shall consult with CONSUL TANT should the contracts with
the Contract Cities be amended or terminated, provided that if any
such amendment or termination is reasonably expected to result in
increased costs to CONSULTANT, such amendment or
termination (if initiated by CITY) shall be subject to
Page 19 of25
CONSUL TANT's prior written consent. CONSUL TANT shall notify
CITY in writing of its consent or lack thereof within forty-five (45)
days after receipt of CITY's written request, which request shall
include the precise language of such amendment or all relevant
details of such termination (whichever applies}. If CONSULTANT
consents, the parties shall amend this Agreement (i} to adjust the
scope of Services accordingly and (ii) to cover any reasonable cost
increases to CONSUL TANT.
c) CITY may contract with additional cities, subject to
CONSULTANT's prior written consent. CONSULTANT shall
notify CITY in writing of its consent or lack thereof within forty
five (45) days after receipt of CITY's written request, which
request shall include the text of such proposed contracts. If
CONSUL TANT consents, CONSUL TANT and CITY shall
amend this Agreement (i) to adjust the scope of Services
accordingly and (ii) to cover any reasonable cost increases to
CONSULTANT.
d) CONSUL TANT shall continue membership in
the WeCare Alliance (www.sheltersfirst.org}.
10. Cost Overruns or Changes
a) If CITY or state laws are passed during the term of this Agreement
that require a greater level of service, CITY and CONSUL TANT
agree to negotiate in good faith regarding the reimbursement of
CONSULTANT for additional costs associated with implementing
the new laws. If Parties are unable to agree on reimbursement
costs, CONSUL TANT shall document the increased costs and
submit to the City Auditor. The City Auditor shall conduct an
independent audit. Parties agree to accept the City Auditor's
determination of any increased costs.
b) If current state laws are amended, repealed, otherwise changed
or suspended during the term of this Agreement that reduce, alter,
or remove existing relevant mandates, either party may require
the other party to meet to discuss possible financial and
operational impacts of levels of service per the change in law,
including but not limited to any decrease in contract amounts paid
to CONSULTANT, provided that no such decrease shall be
effective unless agreed by CONSULTANT.
111. CITY RESPONSIBILITIES. CITY shall:
1. Provide an adequate and safe facility for CONSULTANT to perform
the Services.
2. Provide Animal Control Officers (ACOs) and their services for CITY
and Contract Cities . This shall include maintenance of ACO vehicles
Page 20 of 25
and equipment. Establish fees for dog licensing and animal
impounding.
3. With regard to the shelter facility, provide and/or pay for utilities, taxes,
electricity, water, gas, waste water, recycling, waste (not animal
disposal), internet, Chameleon software/database and associated
support, and Chameleon server hardware and support (if any), which
collectively is estimated to cost approximately $55,000 peryear.
4. Develop and maintain proactive and consistent communication and
rapport with CONSUL TANT
a) Respond in a timely manner to emails and phone calls
b) Communicate and resolve issues and concerns immediately
c) Provide excellent customer service to CONSUL TANT staff and
customers
5. Develop, in cooperation with CONSULTANT, a disaster preparedness
plan
6. Administer the agreements between the CITY and the Contract Cities
regarding animal shelter services.
Page 21 of25
EXHIBIT "B 11
COMPENSATION
CITY agrees to compensate CONSULTANT for professional services performed in
accordance with the terms and conditions of this Agreement, and as set forth in the
schedule below.
SCHEDULE
Year1
Year2
Year3
Year4
Years
Sub-total Basic Services
Reimbursable Expenses
TO EQUAL AND NOT TO EXCEED
(SUBJECT TO SECTION 19 "TERMINATION OR
SUSPENSION OF AGREEMENT OR SERVICES")
$708,000.00
$663,000 .00
$676,260.00
$689,785.20
$703,580.90
$3,440,626.10
$0.00
Total Basic Services and Reimbursable expenses $3,440,626.10
Contingency Funds $200,000.00
(not to exceed $40,000 per year)
Additional Compensation for Renovation Delays $60,000.00
Maximum Total Compensation
ONE-TIME ADVANCE
(not to exceed $5,000 per month; see
Exhibit D, Section 15.7)
$3,700,626.10
Simultaneous with the execution of this Agreement, CITY shall pay to CONSULTANT One
Hundred Seventy Eight Thousand dollars ($178,000) as an advance against the first three
months of CONSULTANT's fee. CONSULTANT shall not submit an invoice for the
remainder of its fee for the third month until the end of such third month.
CONTINGENCY FUNDS
CITY shall provide contingency funds to CONSUL TANT in the following circumstances,
subject to written approval by the CITY's project manager, and to equal and not to exceed
the amount in this Exhibit C:
1. CITY shall provide contingency funds for after-hours and emergency veterinary
care if:
a. CONSULTANT has already spent at least $10,000 in the past 12 months
on a rolling basis on after-hours or emergency veterinary care that was
reasonable based on AVMA guidelines; and
b. The emergency or after hours treatment being sought is reasonable based
Page 22 of 25
on AVMA guidelines.
2. CITY shall provide contingency funds for hoarding cases if:
a. CONSUL TANT has already served more than 600 animals from the CITY
or the Contract Cities in the past 12 months; and
b. The hoarding case involves a minimum of 12 animals brought at once that
are expected to stay in the facility for at least 30 days each.
3. CITY shall provide contingency funds for the actual costs of wildlife intake at the
Peninsula Humane Society if:
a. The Peninsula Humane Society begins charging for the costs of wildlife
services; and,
b. This Agreement has not yet been amended to reflect the additional costs of
such services.
4. CONSULTANT may also request contingency funds in other unforeseen
circumstances.
To request contingency funds, the CONSULTANT shall submit a detailed written proposal
including a description of the scope of services, schedule, level of effort, and
CONSULTANT's proposed maximum compensation, for such services. In addition to the
factors above, CITY may consider whether contingency funds are appropriate within
existing funding and workload, and contingency funds shall not be released if
CONSULTANT has not exhausted unused or unallocated funds.
The CITY shall notify CONSULTANT in writing of its approval or lack thereof within ten
(10) days after the date of CONSUL TANT's proposal. If CITY's project manager does not
approve CONSUL TANT's request, CONSUL TANT may appeal that decision to the City
Manager.
If authorized by CITY, the contingency services scope, schedule and maximum
compensation shall be negotiated and agreed to in writing by the CITY's project manager
and CONSULTANT, and payment shall be made to CONSUL TANT, no later than ten (10)
days after the date of CITY's authorization. Contingency funds are subject to all
requirements and restrictions in this Agreement.
ADDITIONAL COMPENSATION FOR RENOVATION DELAYS
The City shall pay Consultant up to $5,000 monthly for up to twelve consecutive months
pursuant to the terms of Exhibit D, Section 15.7 ("Additional Compensation for Renovation
Delaysa) of this Agreement.
REIMBURSABLE EXPENSES
No Reimbursable Expenses are authorized by CITY through this Agreement, unless
pursuant to a written amendment to this Agreement as provided for herein .
ADDITIONAL SERVICES
No Additional Services are authorized by the CITY through this Agreement, unless
pursuant to a written amendment to this Agreement as provided for herein .
Page 23 of25
REQUIRED
YES
YES
YES
YES
YES
YES
INSURANCE
YES
YES
EXHIBIT 11C"
INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE
TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE
COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A
:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE
STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS
SPECIFIED, BELOW:
MINIMUM LIMITS
TYPE OF COVERAGE REQUIREMENT EACH
OCCURRENCE AGGREGATE
WORKER'S COMPENSATION STATUTORY
EMPLOYER'S LIABILITY
BODILY INJURY $5,000,000 $5,000,000
GENERAL LIABILITY. INCLUDING
PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $5,000,000 $5 ,000,000
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY $1,000,000 $1,000,000
-EACH PERSON $1,000,000 $1,000,000
-EACH OCCURRENCE $1,000,000 $1,000,000
AUTOMOBILE LIABILITY, INCLUDING
ALL OWNED, HIRED , NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000 ,000
BODILY INJURY AND PROPERTY $1 .000 ,000 $1,000,000
DAMAGE, COMBINED
PROPERTY INSURANCE ALL RISK, FULL REPLACEMENT INSURANCE
\/.II.I I I&:
BUSINESS INTERRUPTION
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN ALL DAMAGES $2,000,000
APPLICABLE), AND NEGLIGENT
PERFORMANCE
THE CITY OF PALO AL TO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND
EXPENSE, SHALL OBTAIN AND MAINTAIN. IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY
RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND
ITS SUBCONTRACTORS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S
LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS,
OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED
INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT
ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR
FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS
Page 24 of25
UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS
OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF
MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF CONSULTANT
UNDER THIS POLICY.
C . NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR
ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM,
CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30)
DAY WRITIEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE
FOR THE NON-PAYMENT OF PREMIUM, CONSULTANT SHALL
PROVIDE CITY AT LEAST A TEN (10) DAY WRITIEN NOTICE
BEFORE THE EFFECTIVE DATE OF CANCELLATION.
II. INSURANCE COVERAGE MUST INCLUDE:
1. A PROVISION FOR AWRITIEN THIRTY (30) DAY ADVANCE NOTICE
TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE
CANCELLATION; AND
2. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING
INSURANCE COVERAGE FOR CONSULTANT'S AGREEMENT TO
INDEMNIFY CITY.
3 . DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S
PRIOR APPROVAL.
Vendors are required to file their evidence of insurance and any
other related notices with the City of Palo Alto at the following URL:
https://www.planetbids.com/portal/portal.cfm?Company1D=25569
OR
http://www.cityofpaloalto.org/qov/depts/asd/planet bids how to.as
Q
Page 25 of25
. EXlllBITD
USE OF PREMISES
SECTION 1. USE OF PREMISES. Consultant shall have the exclusive right to enter and use the
Premises during the tenn of this Agreement for the sole purposes of perfonning the Services and fulfilling
Consultant's obligations under the Agreement, as detailed in this Section 1 ("Use of Premises") of this
Exhibit D. Consultant shall have the right to pennit Consultant's employees, agents and subcontractors to
enter and access the Premises for the sole purposes of perfonning the Services and fulfilling Consultant's
obligations under this Agreement. Consultant shall have the right to exclude third parties and trespassers
onto the Premises. Notwithstanding the foregoing, City's Animal Control Officers and their supervisors
have the right to enter the Premises at any time. In addition, City has the right to enter Premises at any
time for the purposes of inspection, emergency response and the perfonnance of City obligations under
this Agreement. Consultant shall, at City's request, promptly remove any of Consultant's property or
Consultant-installed improvements on the Premises to allow City access to the utilities or other City
owned facilities/property. In the event City deems it necessary, for purposes of health, safety or building
code requirements, in City's sole discretion, City shall have the right to move, alter or remove any such
property or improvements and City shall be responsible for promptly restoring or returning the same to its
prior condition.
SECTION 2. CONDITION OF PREMISES, CLEANING AND MAINTENANCE.
2.1 Condition of Premises, Routine Interior Cleaning and Janitorial Activities. In
connection with its use, Consultant shall maintain the Premises in a clean, safe, secure, orderly, and
sanitary condition, consistent with a commercially reasonable standard for a well-run animal shelter
facility, so far as the Premises may be affected by Consultant's activities under this Agreement.
Specifically, Consultant shall undertake routine cleaning and janitorial activities as necessary to maintain
the interior of the Premises in an orderly condition, as above, provided that nothing in this section shall
obligate Consultant to make any alterations or capital improvements to the Premises. Consultant shall
maintain all of its own equipment, furnishings and trade fixtures upon the Premises which are required for
the maintenance and operation of the Palo Alto Animal Shelter.
2.2 Maintenance and Utilities. Outside of Consultant's responsibilities for routine interior
cleaning and janitorial activities in Section 2.1 of this Exhibit, City shall be responsible for the
maintenance of the interior and exterior of the Premises and the surrounding grounds, including (without
limitation) the maintenance, repair, and replacement of the roof, building structure, improvements, and
the HV AC, electrical, plumbing, and other building systems. City shall perfonn any alterations to the
Premises (1) required by applicable laws or laws of general application (i.e. ADA, seismic regulations,
and building codes) and (2) to ensure that utilities (including, without limitation, water, gas, and
electricity) are available to the Premises, in amounts sufficient for Consultant to perform the Services. In
the event of a utilities outage, the City will work diligently to restore availability as quickly as possible.
City shall promptly perform its obligations under this Section 2.2 ("Maintenance and Utilities"). In the
event of a maintenance issue that impacts the health and safety of the operations, the City shall respond
within 24 hours of receipt of notice from Consultant to develop an action plan to address the issue in an
expedited timeframe.
SECTION 3. HAZARDOUS MATERIALS.
3.1 Environmental Laws. "Environmental Laws" means any applicable federal, state or
local laws and regulations relating to Hazardous Material (including, without limitation, its use, handling,
transportation, production, disposal, discharge or storage) or to human health and safety, industrial
hygiene or environmental conditions in, on, under or adjacent to the Premises, including without
limitation soil, air and groundwater conditions.
3.2 Hazardous Materials. "Hazardous Materials" means any substance, material, waste,
pollutant or contaminant which is regulated by applicable Environmental Laws as being hazardous, toxic,
flammable, carcinogenic, explosive or radioactive, or is potentially injurious to the public health, safety or
welfare or the environment.
3.3 Release. "Release," when used with respect to Hazardous Materials, means any actual or
imminent spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching, dumping, depositing, or disposing on, in, under or adjacent to the Premises, or any
improvements constructed hereunder by or on behalf of the Consultant, or in, on, under or adjacent to the
Premises or any portion thereof in violation of Environmental Laws.
3.4 Remediation. "Remediation" (and derivatives thereof such as an without limitation
"remediate"), when used with reference to Hazardous Materials, means any activities undertaken to clean
up, remove, contain, treat, stabilize, monitor or otherwise control Hazardous Materials located in, on or
under or adjacent to the Premises, or which have been or are being, or risk of being Released into the
environment. Remediation includes, without limitation, those actions included within the definition of
"remedy" or "remedial action" in California Health and Safety Code Section 25322 and "remove" or
"removal" in California Health and Safety Code Section 25323, and as may be amended from time to
time.
3.5 No Hazardous Materials. Consultant covenants and agrees that Consultant shall not, nor
shall Consultant permit any of Consultant's officers, employees, agents, or subcontractors, to cause or
pe1mit any Hazardous Material to be brought upon, kept, used, stored, generated, deposited or disposed of
in, on, under or adjacent to the Premises in violation of Environmental Laws, provided that Consultant
may store and use such substances in and on the Premises in such limited amounts as are customarily
used in the operation of an animal shelter such as the Premises so long as such storage and use is at all
limes in full compliance with all applicable Environmental Laws and permits. Consultant shall notify the
City as soon as possible within 24 hours if and when it learns or has reason to believe that there has been
any Release of Hazardous Material in, on, under or adjacent to the Premises. The City may request
Consultant to provide adequate information for City to determine that any Hazardous Material permitted
hereunder is being handled in compliance with all applicable Environmental Laws, and Consultant shall
promptly provide all such information. In the event that any Hazardous Material is Released in, on, under
or adjacent to the Premises by Consultant or any of Consultant's officers, agents, employees, or
subcontractors, Consultant shall promptly undertake all necessary actions to Remediate the contaminating
Hazardous Material from the Premises and to return the Premises and other City property affected
thereby, to the condition existing prior to such Release, or its reasonable equivalent or better, and
otherwise investigate and Remediate the Release in accordance with applicable Environmental Laws, at
no cost to City. Notwithstanding the foregoing, and excluding Consultant's notice obligations under this
Section, Consultant shall have no Remediation obligations under this Section for (i} the mere discovery of
any preexisting condition, or (ii) any conditions arising out of any action or inaction of City, its Council
members, officers, employees, agents or subcontractors, and not contributed to by any action or inaction
of Consultant or Consultant's officers, employees, agents, or subcontractors, (iii) any conditions arising
out of any action or inaction of third party vendors that are not an agent or subcontractor of Consultant,
and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents,
or subcontractors, (iv) any conditions arising out of any action or inaction of a third party, not an agent or
subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or
Consultant's officers, employees, agents, or subcontractors.
3.6 Hazardous Material Indemnity. Consultant shall, on behalf of itself and its successors
and assigns, indemnify, defend and hold harmless City, its Council members, officers, employees and
agents ( each a "City Indemnified Party"} from and against any and all claims, liabilities, penalties,
forfeitures, losses and/or expenses (including, without limitation, diminution in value of the Premise,
damages for the loss or restriction on use of the rentable or usable space or of any amenity of the Premise,
damages arising from any adverse impact or marketing of the Premises and sums paid in settlement of
claims, response costs, cleanup costs, site assessment costs, reasonable attorneys' fees, reasonable expert
fees, judgments, administrative rulings or orders, fines, penalties, costs of death of or injury), to any
person or damage to any property whatsoever (including, without limitation, groundwater, sewer systems
and atmosphere), arising from, or caused or resulting, in whole or in part, directly or indirectly, by the
presence or discharge in, on, under or adjacent to the Premises by Consultant, or Consultant's officers,
employees, agents or subcontractors, of Hazardous Material, or by any such party's failure to comply with
any applicable Environmental Law, whether knowingly or by strict liability. Such Consultant indemnity
obligations include, without limitation, and whether foreseeable or unforeseeable, all costs of any
Hazardous Materials management plan, closure, investigat.ion, repairs, and Remediation and restoration of
the Premises to its prior condition. For purposes of such indemnity obligations, any acts or omissions of
Consultant, its officers, employees, agents, or subcontractors (whether or not they are negligent,
intentional, willful or unlawful) shall be strictly attributable to Consultant. Consultant shall provide the
City with written notice of and afford City a full opportunity to participate in any discussions with
governmental regulatory agencies regarding any settlement agreement, Remediation or abatement
agreement, consent decree, permit, approvals, or other compromise or proceeding involving a Release of
Hazardous Materials in, on, under, or adjacent to the Premises by Consultant or Consultant's officers,
employees, agents, or subcontractors as detailed in this Section. Notwithstanding the foregoing,
Consultant shall have no obligation to indemnify the City or any City Indemnified Party for (i) the mere
discovery of any preexisting condition, or (ii) any conditions arising out of any action or inaction of City,
its Council members, officers, employees, agents or subcontractors and not contributed to by any action
or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors, (iii) any
conditions arising out of any action or inaction of third party vendors that are not an agent or
subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or
Consultant's officers, employees, agents, or subcontractors, (iv) any conditions arising out of any action
or inaction of a third party, not an agent or subcontractor of Consultant, and not contributed to by any
action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors.
SECTION 4. DAMAGE TO UTILITIES. Consultant shall exercise reasonable care to not do anything
in, on, under or adjacent to the Premises that damages any City utilities (e.g. gas, water, wastewater, fiber,
electric) located in, on, under or about the Premises. Consultant agrees to reimburse City within thirty
(30) calendar days of City's written request for any damages caused to City owned utilities caused by a
failure of PIN to exercise reasonable care the Premises.
SECTION 5. [RESERVED BY AGREEMENT OF THE PARTIES]
SECTION 6. SURRENDER; DUTIES UPON TERMINATION OR EXPIRATION. Upon the
expiration or earlier termination of this Agreement, Consultant shall immediately surrender the Premises
in the same condition as received upon completion of the improvements detailed in this Agreement and
any other improvements completed by City during the term of this Agreement (excepting reasonable wear
and tear; casualty not caused or contributed to by Consultant or its officials, employees, agents or
subcontractors; or condemnation not caused or contributed to by Consultant or its empl9yees, agents or
subcontractors), broom cleaned, walk-through with City staff completed, and free from hazards that are
not pre-existing and were not introduced by the City or its officials employees, agents or subcontractors
and clear of all debris that is not pre-existing and was not introduced by the City or its officials,
employees, agents or subcontractors. At such time, Consultant shall remove all of its property from the
Premises hereunder, and shall repair, at its cost, any damage to the Premises caused by such removal.
Consultant's obligations under this Section shall survive any termination of this Agreement. Consultant
shall deliver to the City the originals of all books, permits, plans, records, licenses, contracts, and other
documents pertaining to the Premises and its operation, any insurance policies, bills of sale or other
documents evidencing title or rights of the City, and any and all other records or documents pertaining to
the Premise, whether or not enumerated herein, which are requested by the City or necessary or desirable
for the ownership and operation of the Premise, which are in the Consultant's possession. Consultant shall
also deliver to City all keys, alarm codes, passwords, and other items used to secure the Premise .
Consultant further agrees to do all other reasonable things reasonably necessary to cause an orderly
transition of the management and operation of the Premises. The provisions of this Section shall survive
the expiration or earlier termination of this Agreement until the obligations of the Consultant under this
Section are fulfilled to the reasonable satisfaction of the City.
SECTION 7. REPAIR OF DAMAGE. If any portion of the Premises or any property of City located
in, on, under or adjacent to the Premises is damaged or at risk of damage by any of the activities
conducted by Consultant or anyone acting by or through Consultant, Consultant shall immediately notify
City in writing of such damage or risk of damage. City may remedy, but shall not be obligated to remedy,
such damage or risk of damage at Consultant's sole cost, or City may elect to witness Consultant's repair
work. In the event City elects not to remedy such damage or threat, Consultant shall repair any and all
such damage and restore the Premises or such property to its previous condition subject to City's
inspection, review and approval.
SECTION 8. CITY'S RIGHT TO CURE DEFAULTS BY CONSULTANT. If Consultant fails to
perform any of its obligations under this Exhibit D to restore the Premise, remove or alter improvements
or repair damage, or if Consultant defaults in the performance of any of its other obligations under this
Exhibit D within a reasonable time after demand by City, then City may, at its sole option, remedy such
failure at Consultant's expense; within ten ( I 0) days of receipt of a bill, Consultant shall promptly
reimburse the City's actual reasonable costs (including without limitation all costs, damages, expenses or
liabilities incurred by City, reasonable attorneys', experts' and Consultants' fees) in remedying or
attempting to remedy such failure, or City may reduce any outstanding amount due to Consultant under
the Agreement by the cost to City of such remedial action. In the alternative, the cost thereof may be
made a lien on Consultant's property as provided in section 12.12.010 of the Palo Alto Municipal Code.
Any such remedial action by City shall not be construed as a waiver of any rights or remedies of City
under this Exhibit D or the Agreement, and nothing herein shall imply any duty of City to do any act that
Consultant is obligated to perform. Consultant's obligations under this Section shall survive the
expiration or earlier tennination of this EKhibit D.
SECTION 9. GENERAL PROVISIONS. (a) If Consultant consists of more than one person, the
obligations of each person shall be joint and several. (b) Consultant may not record this Exhibit Dor any
memorandum hereof. ( c) Any sale or conveyance by City of the Premises, the provisions of Section 19
("Termination or Suspension of Agreement or Services") of this Agreement shall govern.
SECTION 10. HOLDING OVER. If Consultant remains in possession of the Premises or any part
thereof after the expiration of the term of this Agreement, or any renewal option thereto, such occupancy
shall be a revocable license from month to month with all the obligations of this Exhibit D applicable to
Consultant. Nothing contained Exhibit D or in the Agreement shall give to Consultant the right to occupy
the Premises after the expiration of the term of this Agreement, or any renewal option thereto, or upon
any earlier termination .
SECTION 11. WAIVER OF CML CODE. Consultant expressly waives. the benefit ofany statute now
or hereinafter in effect, including the provisions of sections 1941 and 1942 of the Civil Code of
California, to the extent applicable, which would otherwise afford Consultant the right to make repairs at
City's expense or to terminate this Agreement because of City's failure to keep Premises in good order,
condition and repair.
SECTION 12. ALTERATIONS BY CONSULTANT. Consultant shall not make any alterations or
improvements to the Premises without obtaining the prior written consent of the City Manager, except for
alterations or improvements that cost less than Ten Thousand Dollars ($10,000 .00) and which do not
affect any building systems or the structural integrity or any structural components of the Premises.
12.1 Ownership of Improvements. All improvements constructed, erected, or installed upon
the Premises by Consultant must be free and clear of all liens, claims, or liability for labor or material and
shall become the property of City, at its election, upon expiration or earlier tennination of the term, and
shall remain upon the Premises upon expiration or earlier termination of this Agreement. Any furniture,
trade fixtures installed by Consultant, equipment or other property of Consultant (whether obtained prior
to or during the term of this Agreement) shall remain the property of Consultant. Consultant shall restore
the Premises to the condition prior to Consultant's installation of such trade fixtures, consistent with
Section 6 ("Surrender; Duties Upon Termination or Expiration") ..
12.2 Indemnity for Claims Arising Out of Construction. For the avoidance of doubt,
included in Consultant's obligations under Section 16 ("Indemnity; Limitation of Liability") of the
Agreement to which this is an exhibit, is Consultant's obligation to indemnify, defend and hold hannless
City Indemnified Parties against all Claims arising out of construction and maintenance work perfonned
on the Premises by Consultant or caused to be performed on the Premises by Consultant.
12.3 Certificate of Inspection. In the event Consultant will perform, or cause to be
performed, any construction, improvement or alteration or any other work on or to the Premises for which
City requires a certificate of completion, then upon completion of any such construction, improvement or
alteration, Consultant shall submit to the City Manager a Certificate of Inspection, verifying that such
construction, improvement or alteration was completed in conformance with Title 20 of the California
Code of Regulations for residential construction, or in conformance with Title 24 of the California Code
of Regulations for non-residential construction, as applicable.
12.4 As Built Plans. Consultant shall provide the City Manager with a complete set of
reproducible "as built plans" reflecting actual construction within or upon the Premises upon completion
of any: (i) new construction or (ii) structural alterations.
SECTION 13. ASBESTOS NOTIFICATION. Consultant acknowledges that City has advised
Consultant that the Premises contains, or because of its age, is likely to contain asbestos-containing
materials ("ACMs"). If Consultant undertakes any alterations, additions, or improvements to the
Premises, Consultant shall do so in a manner that avoids disturbing any ACMs present on the Premises .
If ACMs are likely to be disturbed in the course of such work, Consultant shall encapsulate or remove the
ACMs in accordance with an asbestos-removal plan approved by the City and otherwise in accordance
with all applicable laws, including giving all notices required, if any, by California Health and Safety
Code§§ 25915-25919.7, as may be amended.
SECTION 14. MATERIAL CASUALTY
14.1 Damage and Repair. If a Material Casualty (as defined herein) occurs, then the City
shall detennine, in its sole and absolute discretion, whether it wishes to continue to operate the Premises
as an animal shelter. The City's failure to provide written notice to Consultant of such election within
thirty (30) days after the occurrence of a Material Casualty or other damage or destruction of the Premises
shall constitute the City's election to continue the operation of the Premises as an animal shelter. If the
City elects (or is deemed to elect) to continue the operation of the Premises as an animal shelter after a
Material Casualty, or if the Premises is damaged but such damage does not constitute a Material Casualty,
then the City shall promptly reconstruct or repair the destroyed or damaged portion of the Premises. City
shall pay all costs of repairing and reconstructing the Premises. A "Material Casualty" is a total
destruction of the Premises or any damage to the Premises the repair of which would exceed the City
Manager's Council-delegated contracting authority under Palo Alto Municipal Code section 2.30.210,
depending on the applicable contract types in relation to the repairs required.
14.2 Termination. If City notifies Consultant in writing within thirty (30) days after the
occurrence of a Material Casualty that the City elects to not continue the operation of the Premises as an
animal shelter after such Material Casualty, then the Agreement shall immediately terminate as of the date
such notice is delivered to Consultant. In the event of such termination, (i) City shall pay Consultant's
reasonable costs in winding down the operations at the Premises, including, but not limited to, any costs
associated with the tennination of employees by Consultant and (ii) Consultant shall be entitled to retain
its prorated compensation amount for the quarter in which termination occurs (prorated for the number of
days in such quarter that elapsed up to the date of termination).
14.3 Continuation. If the City elects (or is deemed to elect) or is obligated to reconstruct or
repair the damaged portions of the Premises because such damage does not constitute a Material Casualty
pursuant to Section 14. l ("Damage and Repair"), the City and Consultant shall make a determination as
to whether the Premises will continue to operate during the reconstruction/repair period. If the parties
mutually determine (in their respective reasonable discretion) that the Premises will operate during such
period, this Agreement shall remain in full force and effect. Otherwise, Consultant's obligations to
provide animal shelter services under this Agreement shall be suspended during such period. In the event
of such suspension, (i) City shall pay Consultant's reasonable costs incurred by Consultant during any
such suspension of operations and (ii) Consultant shall be entitled to retain its prorated compensation
amount for the quarter in which suspension occurs (prorated for the number of days in such quarter that
elapsed up to the date of suspension). City shall further pay all reasonable costs incurred by Consultant
due to such suspension. If the parties desire, during the suspension period, the parties may negotiate in
good faith to try to provide for animal shelter services to the best of the parties' reasonable abilities under
the circumstances of such a suspension.
SECTION 15. CITY IMPROVEMENTS TO PREMISES. The City has worked with Consultant to
identify improvements to the Premises. The City shall improve the Premises as follows, subject to the
Contingencies described in this section:
15.1 Expansion of Existing Medical Suite. The City shall expand the medical suite at the
Premises to accommodate more animals and offer more privacy to customers. The remodeled medical
suite shall expand into the office area for the shelter and shall offer separate entrances for medical
customers, separate treatment, recovery, and preparation areas, as well as a lobby for medical customers.
The expansion will not be inconsistent with the plans entitled "Floor Plan -New Medical Area" that
Consultant provided to City, attached as (Exhibit D-1 ), to the extent practicable and feasible based on site
requirements and architectural-or engineering-based considerations. The City shall abate asbestos and
lead paint within the medical suite area of the Premises.
Expected Timeline:
Design and Review Timelines:
A/E Consultant Procurement: November 8 -December 30, 2018
Schematic Design/ Design Development: January 2, 2019 -February 25, 2019
Construction Documents: February 28-March 22, 2019
Building Permit: April 4-May 5, 2019
Procurement and Construction Timelines:
General Contract Bidding/Procurement: April 25 -July 7, 2019
Construction: July 24 -November 14, 2019
Note: During construction, the building will be closed, and staff will need alternative worksites. All other
parts of the building should still be open.
15.2 Addition of New Modular Building. The City shall place a modular building on the site
to supplement the existing building. The building shall be used for offices as well as for meetings and
educational programs for the public. The modular building shall be connected to utilities and will likely
require a concrete pad. The modular building will not be inconsistent with Exhibit D-2, to the extent
practicable and feasible based on site requirements and architectural-or engineering-based considerations.
The City will place one (1) construction-type trailer within sixty (60) days as temporary accommodations
until the modular building is installed and operational.
Expected Timeline:
Design and Review Timelines:
Design: November 8, 2018 -February 25, 2019
ARB Review: January IO, 2019-February 8, 2019
Building Pennit (concurrent): January I I, 2019 -May 4,2019
Procurement and Construction Timelines:
Procurement (9 steps): February 28 -May 12, 2019
Construction (4 major steps): May l, 2019 -July 28, 2019
15.3 Renovation of Existing Dog Kennels. The City shall renovate the existing dog kennels
located at the Premises to ensure that all kennels are operable and expected that this work shall be done
by March 15, 2019. The renovation shall be as described in Exhibit D-3, to the extent practicable and
feasible based on site requirements and architectural-or engineering-based considerations.
15.4 Construction of New Dog Kennels. The City shall construct 16 new kennels on the
Premises. Construction is expected to be complete by July 30, 2020. The new kennels will be constructed
of galvanized steel, will be air-conditioned and heated, and located as close as possible to the existing dog
kennels and medical area, to the extent practicable and feasible based on site requirements and
architectural-or engineering-based considerations. Interior and exterior runs shall be of material size and
quality not inconsistent with the applicable items as set forth on Exhibit D-4, to the extent practicable and
feasible based on site requirements, architectural-or engineering-based considerations, and procurement
requirements applicable to the City as a public entity.
15.5 Total Cost. The total cost of these improvements above is expected to be approximately
$3.4 million, not including staff time, as estimated at the time as of the execution of this Agreement, and
shall be fully paid for by the City of Palo Alto.
15.6 Contingencies . The Parties acknowledge that the improvements in this Section are
subject to conditions which may alter the scope of the aforementioned improvements and could prevent
one, some, or all of them from being constructed . These conditions include, but are not limited to:
(a) Permitting and architectural review;
(b) Appropriation of sufficient funds, as decided by the City Council;
(c) Compliance with all laws, regulations, permits, and conditions, including CEQA; and
(d) Changes in the prices for construction and materials.
15.7 Additional Compensation for Renovation Delays. Due to facility inadequacies, that
would be remedied by the completion of the renovations outlined in sections 15.1, 15.2, and 15.3, the City
will provide additional compensation to Consultant up to five-thousand dollars ($5,000) per month,
should the City be unable to substantially complete the renovations in the time periods outlined in
sections 15.1, 15.2, and 15.3. The additional compensation must be specifically documented and related
to costs Consultant incurs as a result of facility inadequacies that would be remedied by the completion of
renovations.
15.8 All work perfonned by the City shall be performed in a workmanlike manner, in
compliance with all applicable laws., City shall take reasonable steps to perfonn such work in a manner
which results in minimal disruption to Consultant's activities in the Premises. Consultant will take
reasonable steps to accommodate City's work. The City shall enforce all applicable third party warranties
at the request of Consultant. City shall promptly obtain final certificates of occupancy for all applicable
portions of the Premises.
15.9 Renovation Timeline Updates. City shall provide renovation timeline updates to
Consultant on a quarterly basis or more frequently upon request. Six months after the commencement of
the construction of the improvements detailed in this Agreement, the parties will meet to review whether
the renovation timelines stated herein are on track. City shall provide renovation timeline updates to
Consultant on a quarterly basis or more frequently upon request. If, in Consultant's reasonable
determination, there is excessive delay in any renovation timelines stated herein, and City is not diligently
pursuing completion of the improvements detailed in Section 15.1, 15.2, or 15.3, Consultant may
terminate this Agreement upon sixty (60) days' written notice to City.
Palo Alto Animal Shelter
3281 East Bayshore Rd., Palo Alto, CA
Legend
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