POS Agreement_Dubuque Regional Human Society 2014THE CITY OF
Dui
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Humane Society Contract Renewal Recommendation
DATE: July 1, 2014
Dubuque
band
AI -America City
r
2007 • 2012 • 2013
Public Health Specialist Mary Rose Corrigan recommends City Council approval a one
year Purchase of Service Agreement with the Dubuque Regional Humane Society in the
amount of $133,039.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
bd-144 c,
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Mary Rose Corrigan, Public Health Specialist
THE CITY OF
Dui
Masterpiece on the Mississippi
TO: Mike Van Milligen, City Manager
FROM: Mary Rose Corrigan, Public Health Specialist
SUBJECT: Humane Society Contract Renewal Recommendation
DATE: June 30, 2014
Dubuque
bard
All -America City
r
2007 • 2012 • 2013
INTRODUCTION
This memo provides background history of the City's purchase of service agreement
with the Dubuque Regional Humane Society (DRHS) and a recommendation for a new
one year agreement beginning July 1, 2014.
BACKGROUND
Prior to FY2005, the City purchase of service agreement was renewed annually and
generally included a 2-3% increase in payment from the previous year. In the spring of
2004, the city and the DRHS had extensive negotiations regarding the agreement,
prompted by a letter from the DRHS to the City Council requesting a $248% increase,
from $30,584 to $106,483.
During the negotiations, I researched alternatives to contracting with the DRHS for
animal services. Although viable options were proposed, the short time frame to
execute these options prior to the contract expiring made them difficult to execute. At
one point the city manager recommended a termination to the agreement notice,
however, negotiations did resume and the first five-year agreement was approved. The
agreement included a graduated increase from $46, 400 in FY05 to $112,400 in FY09.
The agreement also stated that the DRHS would provide monthly reports with data on
the number of animals brought in from City Animal Control, Police and citizen finders
along with revenues received by the DRHS.
In 2008, Assistant City Manager Cindy Steinhauser and Budget Director Jenny Larson
and I negotiated a new five-year agreement with the DRHS. The new agreement
included the following provisions for the DRHS:
• A third -party financial audit provided prior to July 1, 2013, and annually
• Institute a cost accounting system by December 31, 2010 and provide reports
that break down revenue and expenses in various categories, including but not
limited to, activities such as adoption, animal cruelty, education, development,
cemetery, promotion, City of Dubuque Animal Control. Once in place, the
revenue and expense reports shall be submitted to the City monthly.
• An account report of the direct City expenditures for each of the activities
identified above will be added to the regular monthly reports
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• Clarification of special accommodations and other minor changes
The new agreement began using the base fee of $115,772, a 3% increase from the
previous year's agreement and increased by the annual CPI. The annual increase would
not be less than 3% nor more than 5% of the annual fixed fee for the prior year.
In FY2014, the final year of this agreement, the City paid the DRHS $130,303.00.
The history of payments to the Humane Society since FY1999 is:
• FY 1999 $26,940 • FY 2007 $106,400
• FY 2000 $27,756 • FY 2008 $109,400
• FY 2001 $28,584 • FY 2009 $112,400
• FY 2002 $29,304 • FY 2010 $115,772
• FY 2003 $30,036 • FY 2011 $119,245
• FY 2004 $30,636 • FY 2012 $122,822
• FY 2005 $46,404 • FY 2013 $126,507
• FY 2006 $71,400 • FY 2014 $130,303
DISCUSSION
In the 2004 agreement, minimal reports were required by DRHS. In the 2009
agreement, the DRHS agreed to:
"DHS shall institute a cost accounting system and shall not later than December 31,
2010 provide to City reports that break down revenue and expenses in various
categories, including but not limited to, activities such as adoption, animal cruelty,
education, development, cemetery, promotion, City of Dubuque Animal Control. At
such time as DHS has a system in place to allow production of the revenue and
expense reports, such reports shall be rendered no later than the fourth Thursday of
the succeeding month."
This provision was not met by the DRHS. Therefore, we do not have accurate
information on the cost for city animals brought to the DRHS.
Jenny Larson and I began negotiations on March 7, 2014 for this year's new agreement
(however, I had met with Maria Benham on November 27, 2013 and discussed the cost
accounting reports we would be seeking). We requested a number of changes, the most
significant being the DRHS providing accurate costs for city animals. Other changes
negotiated for a new agreement to include the following:
Section 3. Annual Fee. Removed "provided, however, that the increase in the annual
fixed fee each year shall not be less than 3% and no more than 5% of the annual fixed
fee for the prior year." The annual increase will be based solely on the Consumer Price
Index—All Urban Consumers (CPI-U)—US City Average. All items, during the period
ending in May immediately preceding such Fiscal Year as published by the Bureau of
Labor Statistics of the US Department of Labor.
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Section 5. Releasing impounded animal. Remove "City shall pay to DRHS any
impoundment fees received by city for impounded animals that were not received by
DRHS from an Animal Control Officer or City of Dubuque Police Officer, such as to be
paid to the DRHS on a monthly basis." The city will now collect all impoundment fees
including those from animals brought in by citizen finders.
Section 6. Reports. Add to 6.1. The report will include number of animals brought in
by City Animal Control, City Police and citizen finders (added citizen finders).
Add to 6.3. Percentage of wages by each activity for each staff provision. DRHS shall
institute a cost accounting system and shall provide reports that break down revenue
and expenses in various categories, including but not limited to, activities such as
adoption, animal cruelty, education, development, cemetery, promotion, City of
Dubuque Animal Control and assign % of wages by each activity for each staff
position.
Section 10. Disposal of Impounded Animals. Change the requirement to hold a
licensed cat from 5 to 3 days for the owner to claim.
Section 5. Added: Allowing access to the City's animal licensing data for use of the
database by DRHS and its employees for purposes of confirming ownership,
vaccination and licensing information for animals in the possession of the DRHS
pursuant to this agreement.
Section 3 (1), (2) and (3) adds specific penalties for failure to develop and utilize the
cost accounting system for city animals.
Other minor technical changes were also made to the agreement.
At our most recent meeting on June 19, 2014, DRHS stated they have a method for
tracking the costs related to city animals, including employee percentages and costs.
In lieu of purchasing new software, the information will be tracked and compiled
manually by their current financial service, Grassland Accounting Services. This will
provide more accurate information for a potential future software purchase. With a goal
of obtaining accurate costs for city animals utilizing a new and more detailed accounting
system, both parties agreed to a one-year Purchase of Services Agreement.
RECOMMENDATION
I recommend that the City Council approve the attached one year Purchase of Service
Agreement between the City of Dubuque and the Dubuque Regional Humane Society.
COUNCIL ACTION
Authorize the Mayor to sign the attached Purchase of Service agreement between the
City of Dubuque and the Dubuque Regional Humane Society on behalf of the City of
Dubuque.
cc Crenna Brumwell, Assistant City Attorney
3
Cindy Steinhauser, Assistant City Manager
Jenny Larson, Budget Director
4
AGREEMENT BETWEEN
THE CITY OF DUBUQUE, IOWA AND
DUBUQUE HUMANE SOCIETY
THIS Agreement, dated for reference purposes the 1st day of July 2014, is
entered into by and between the City of Dubuque, Iowa, ("City") and the
Dubuque Regional Humane Society ("DRHS").
Whereas, City has no suitable shelter for dogs, cats and other animals
that may be taken up or received pursuant to Title 7, Chapter 6, Article B, 7-6B-
10 of the City of Dubuque Code of Ordinances; and
Whereas, DRHS is an incorporated society which maintains suitable
shelter for animals (the Shelter) which may be taken or received pursuant to
Title 7, Chapter 6, Article B of the City of Dubuque Code of Ordinances; and
Whereas, it is deemed to be in the best interest of City to enter into an
agreement with DRHS to provide animal housing and services for City.
NOW, THEREFORE, IT IS AGREED BETWEEN THE PARTIES HERETO
AS FOLLOWS:
SECTION 1. TERM. The term of this Agreement must be from July 1, 2014
through and including June 30, 2015.
SECTION 2. SHELTER AND EQUIPMENT.
2.1. DRHS must provide the Shelter and all equipment in the Shelter necessary
for the operation of an animal shelter in accordance with the terms of this
Agreement and the laws and administrative rules of the State of Iowa, and the
City of Dubuque Code of Ordinances.
2.2. DRHS must maintain the Shelter in a clean and sanitary manner and
must not permit any condition to exist that might constitute a public nuisance.
2.3. DRHS must manage and operate the Shelter and provide proper and
adequate housing and feeding for all animals, pursuant to this agreement, which
come into its custody.
SECTION 3. ANNUAL FEE. As compensation to DRHS for providing the
services herein specified during the term of this agreement, the City must pay
DRHS during the term of this agreement an annual fixed fee as follows:
$133,039 for fiscal year July 1, 2014 - June 30, 2015. The annual compensation
must be payable in equal monthly installments due on or before the last day of
each month during such Fiscal Year, commencing July 31, 2014.
(1) The payment of fees under this contract is dependent upon the DRHS's
compliance with the terms and conditions of this contract related to Section 6.3,
cost accounting.
(2) In addition to other remedies available to the City if the DRHS fails to comply
with the terms and conditions of this contract relating to cost accounting
requirements, specifically employee payroll distribution to city animals and
allocation of invoices to city animals, as well as requirements in 6.1. 6.2, and 6.3,
the City may unilaterally reduce the fee that is otherwise payable to the DRHS in
accordance with the terms and conditions of this clause.
(3) The fee earned by the DRHS will be reduced ten percent (10%) the first month
of noncompliance and five percent (5%) each additional month of noncompliance.
SECTION 4. DAILY FEE. DRHS must be entitled to retain a daily fee charged to
an animal owner for keeping animals received from an animal control officer or
City of Dubuque police officer, as well as all daily fees charged to an animal
owner for services not within the scope of this Agreement.
SECTION 5. RELEASING IMPOUNDED ANIMAL.
5.1 DRHS must not under any circumstances release an impounded animal
to the owner without the owner producing evidence that all impoundment and
license fees have been paid to the City. Impoundment fees paid at the DRHS will
be paid to the City on or before the 10th day of each month for impoundment
fees paid to City during the previous calendar month.
5.2 For purposes of this Agreement DRHS will be granted access to the City's
animal licensing database. Use of the database by DRHS and its employees will
be limited to confirming ownership, vaccination and licensing information for
animals in the possession of the DRHS pursuant to this Agreement.
SECTION 6. REPORTS.
6.1. DRHS must provide City with monthly reports on a form approved by the
City detailing the number of animals taken in under the terms of this Agreement
and amount of revenue paid to DRHS for any service provided by DRHS for each
such animal. The report will include the number of animals brought in by City
Animal Control, City Police, and citizen finders.
6.2. DRHS must provide monthly financial statements including balance sheets
showing all assets and liabilities and income statements showing all revenues
and expenses. Such reports must be rendered not later than the fourth Thursday
of the following month.
6.3. DRHS must utilize a cost accounting system and must provide
reports that break down revenue and expenses for city animals, including but not
limited to, activities such as adoption, animal cruelty, education, development,
cemetery, promotion, owner surrender, City of Dubuque Animal Control. DRHS
Revenue and expense reports, including costs related to City animals, must be
rendered no later than the fourth Thursday of the succeeding month.
6.4. DRHS must furnish to City a report of DRHS's annual meeting, a list of
its officers, an annual IRS Form 990T, by no later than August 1, 2014, and a
budget no later than December 31, 2014.
6.5. Prior to July 1, 2014, DRHS must cause to be prepared, and provide City
with a copy thereof, an audit by an independent accounting firm covering the
period from January 1 through December 31, 2013. DRHS must also provide City
with a copy of any other audit prepared for DRHS during the term of this
Agreement.
SECTION 7. SPECIAL ACCOMODATIONS.
7.1 Special Accommodations For Any Animals Other Than Dogs or Cats. In
the event City places any animals other than dogs or cats with DRHS, which either
because of the number of such animals or the nature of the animal, require
special accommodations outside of the normal accommodations or capacity of
DRHS, City must reimburse DRHS for the fair and reasonable cost of care for
such animals, provided DRHS must submit to City not less than weekly a
statement showing the cost of such care. In the event the number or nature of
the animal or animals placed by City exceeds the care capacity of DRHS,
DRHS must make every effort to assist City in either caring for such animals at
their current location or assist City in finding alternative accommodations for
such animals. In the event alternative accommodations are required as provided
above, City must be responsible for payment of the cost of such alternative
accommodations.
7.2 Special Accommodations for Dogs or Cats. In the event City places any
dogs or cats with DRHS, which because of the number of such dogs or cats or the
nature of the dogs or cats, require special accommodations outside of the
normal accommodations or capacity of DRHS, City will reimburse DRHS for the
fair and reasonable cost of care for such animals, provided DRHS submits to City
not less than weekly a statement showing the cost of such care. In the event
the number of animals placed by City exceeds the care capacity of DRHS, DRHS
must make every effort to assist City in either caring for such animals at their
current location or assist City in finding alternative accommodations for such
animals. In the event alternative accommodations are required as provided
above, City will be responsible for payment of the cost of such alternative
accommodations.
SECTION 8. HOURS OF SERVICE.
8.1 DRHS must provide twenty-four hour access, seven days a week at the
Shelter for the purpose of receiving animals under this Agreement.
8.2 DRHS must keep the Shelter open to the public daily, Monday through
Sunday, holidays excepted, for the convenience of the public and for the purpose
of transacting business in connection with the services to be provided under this
Agreement. DRHS may close the Shelter for minimal time periods for
emergencies or other non-standard issues.
SECTION 9. ANIMAL CARE. DRHS must accept, handle, care for, maintain
and provide humane disposition for all animals brought to it pursuant to this
Agreement.
SECTION 10. DISPOSAL OF IMPOUNDED ANIMALS.
10.1 DRHS must not dispose of any impounded, licensed cat until at least
three (3) days after the notice to the owner and any impounded, licensed dog until
at least seven (7) days after the notice to the owner required by Title 7 of the City
of Dubuque Code of Ordinances has been made. DRHS must not dispose of any
impounded, unlicensed dogs or cats until at least three (3) days after the date of
impoundment.
10.2 DRHS must provide written notice to the owner of a licensed dog or cat if
DRHS can reasonably determine the owner's name and current address by
accessing a tag or other device that is on or a part of the dog or cat. The notice
must be sent within two (2) days after the dog or cat has been impounded.
The notice must provide that if the owner does not redeem the dog within seven
(7) days or the cat within three (3) days from the date that the notice is delivered,
the animal may be humanely destroyed or otherwise disposed of in accordance
with law as an abandoned animal whose ownership is vested in the DRHS. For
purposes of this requirement, notice is delivered on the date DRHS mails the
notice which may be by regular mail.
10.3 Notwithstanding the foregoing, DRHS may, in its sole discretion, at any
time, euthanize vicious dogs or other vicious animals, if DRHS determines such
dog or other animal constitutes a danger to the public or to DRHS's employees or
staff. Feral cats may be disposed of immediately.
10.4 The city may, in its sole discretion, at any time order the DRHS to euthanize
dogs or other animals, if the city determines such dog or other animal constitutes a
danger to the public or to DRHS's employees or staff. Feral cats may be disposed
of immediately.
SECTION 11. DISPLAY OF LICENSING. DRHS must prominently display in
the Shelter a Certificate of Registration and such other licenses as may be
required by the Iowa Department of Agriculture.
SECTION 12. INSPECTION OF SHELTER. The Shelter must be open for
inspection by the Public Health Specialist of the City of Dubuque. DRHS must
forward copies of all Department of Agriculture and other regulatory inspection
reports to the Public Health Specialist.
SECTION 13. INSURANCE. DRHS must at all times during the term of this
Agreement maintain insurance as set forth on the attached Insurance Schedule
A.
SECTION 14. TERMINATION.
1 4.1 This Agreement may be terminated by either party providing sixty (60)
days written notice to the other party by certified U.S. mad addressed to the City
Manager, City Hall or to DRHS's President, as the case may be.
14.2 If, through any cause, DRHS fails to fulfill in a timely and proper manner its
obligations under this Agreement, or if DRHS violates any of the covenants,
agreements or stipulations of this Agreement, City has the right to terminate this
Agreement by giving written notice to DRHS of such termination and specifying the
effective date thereof, said effect date to be no less than five (5) days before the
effective date of such termination. Upon termination of this Agreement, DRHS will
return to City all unexpended funds and/or any funds utilized for purposes other
than stated in this Agreement.
SECTION 15. COMPLIANCE WITH LAWS. DRHS must comply with all applicable
laws, ordinances and codes of the Federal Government, the State of Iowa, and the
City of Dubuque.
CITY OF DUBUQUE, IOWA DUBUQUE HUMANE SOCIETY
Roy D. Buol, Mayor Anthony Quinn, Chair