HomeMy WebLinkAboutStaff Report 2312-2462 City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: January 16, 2024
Report #:2312-2462
TITLE
Approval of Amendment No. 2 with Pets in Need Contract (C19174493) to extend the term
through March 2024 and increase the compensation by $342,501 for operations of the Palo
Alto Animal Shelter, for a Not-to-Exceed Amount of $4,431,872; CEQA status – not a project.
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager to execute
Amendment No. 2 to Contract No. C19174493 with Pets in Need (Attachment A) in the amount
of $342,501 to continue operations of the Palo Alto Animal Shelter for an additional three-month
term or until a new Agreement is finalized, whichever is sooner.
BACKGROUND
Since 2019, animal sheltering services at the Palo Alto Animal Shelter have been provided by Pets
in Need. The current Agreement has a five-year term ending January 17, 2024 (Attachment B).
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 has extended the termination date several times while the
City and PIN negotiate a new contract Agreement. Staff from the City and PIN have discussed
progress with the Council on several occasions1,2,3. On August 14, 2023, the City Council approved
a proposed Term Sheet with Pets in Need for continued operations of the Palo Alto Animal
Shelter. The Council directed staff to return for approval of a new Agreement reflecting the terms
and approved an interim payment to Pets in Need in the amount of $55,535 per month beginning
June 2023 and each month until a new Agreement is executed. Amendment No. 1 (Attachment
C) to the Agreement was approved by the City Manager and increased the not-to-exceed amount
of the contract by $444,280, which reflects the addition of the interim payment for the eight-
month period beginning June 1, 2023, through January 31, 2024.
1 City Council, March 27, 2023, Agenda Item #3, SR#2302-0940;
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82278
2 City Council, June 12, 2023, Agenda Item #3, SR#2302-1313;
https://cityofpaloalto.primegov.com/Portal/viewer?id=2049&type=0
3 City Council, August 14, 2023; Agenda Item #6, SR#2306-1712;
https://cityofpaloalto.primegov.com/Portal/viewer?id=2632&type=0
Additional background information on the Pets in Need Agreement and approved Term Sheet
can be found in the previous staff reports included as footnotes to this report.
ANALYSIS
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY: