MEMORANDUM 05-05

DATE: January 3, 2005

TO: Mayor Hornaday / Homer City Council

FROM: Walt Wrede

SUBJECT: Contract Extension / Coastal Animal Care

Attached you will find a new contract between the City and Coastal Animal Care. This contract amends and extends the City’s existing contract with the contractor as directed by the Council. Title 20 of the Homer Code and a copy of the Humane Society guidelines for animal shelter operation are attached and made a part of the contract. We believe that this is a good contract and you can see that the Contractor has already signed it. There are several salient points worth noting.

• This contract is for a period of one year, from January 1, 2005 through December 31, 2005.
• The termination clause contains an easy way to terminate the contract for cause or in the event that the Council decides later in the year that conditions have changed and it is in the best interest of the City to either hire employees or conduct a formal RFP process.
• The contract amount is for a total of $47,000. This represents a 20% increase from the previous contract. We believe this increase is justified because we are asking the contractor to operate a new and expanded facility, comply with soon to be developed policies and procedures, and expand hours of operation.

It is important to recognize that this contract amount does not fully reflect the true costs of what a contract amount might be if we contracted this service out in the traditional sense. For example, the City provides the building including maintenance and custodial services, it provides the food and supplies, and it provides and maintains a vehicle. These types of services would generally be part of the contract. It is also important to note that the true cost of operating the shelter exceeds what the City has budgeted. The City budget is supplemented by contributions from Friends of Animals and numerous individual contributors. We will attempt to keep better track of this so we can show the true costs associated with the shelter operations.

RECOMMENDATION: Approval of the Attached Contract with Coastal Animal Care