Loading...
HomeMy WebLinkAbout10/17/2012 - STAFF REPORTS - 5.D. A. For fiscal year 2012-13 the City will contribute funds in an amount equal to the unexpended budgeted funds that remain in the current fiscal year City's budget accounts attributed to the management and operation of the Shelter, including prorated costs of utilities and custodial maintenance according to the following schedule: 50% on November 1, 2012 and 50% on February 1, 2013. For fiscal years 2013-14 and 2014-15, the City shall contribute the base amount of Nine Hundred and Ninety Five Thousand Dollars ($995,000), to be paid in four equal installments on June 1, Octoberl, February 1, and May 1 of each fiscal year. For each of the next three Fiscal Years the City shall contribute an amount equal to the base amount adjusted in an amount equal to the increase or decrease in the Consumer Price Index published by the United States Department of Labor, Bureau of Labor Statistics (1982-1984 = 100) [the "CPI") for "All Items-All Urban Consumers", for the Los Angeles County-Riverside-Orange County Metropolitan Statistical Area, during the preceding year. If the option periods are exercised the contribution amount shall be negotiated in good faith by the Parties. B. The City shall be responsible for all maintenance of the air conditioning system in the Shelter. City Manager shall provide training on the control system so that the Friends can reasonably adjust the temperature in certain areas of the Shelter authorized by the City Manager. C. City shall also provide maintenance of the Shelter's landscaping. D. City will provide and assign to Friends the version of Chameleon Shelter Management computer software currently used at the Shelter to maintain Shelter records and provide training in its use, subject to any applicable software licensing or maintenance agreements that may be necessary for the Friends to enter into. E. The City will continue to include the Shelter on the City's real property insurance policies. F. The City Council will periodically review and establish license and impound fees in amounts the City Council reasonably determines will allow the Friends to recover their costs in providing the licensing and impound services pursuant to the terms of this Agreement. G. The City Council will appoint a member of the City Council to serve as Liaison to the Board of Directors of Friends. 11. Term and Termination. A. The term of this Agreement shall be five (5) years and eight (8) months, commencing on November 1, 2012 and ending on June 30, 2018. The term of the Agreement may be extended twice for three (3) years for each extension, with the mutual consent and agreement of the Parties. -1 WR^4-tA 'M B. The Parties intend that any issues related to operations at the Shelter or issues relating to interactions between the employees or agents of the parties, or any issues concerning rights and responsibilities under this Agreement, be resolved at the lowest possible level.Toward that end,the Parties agree to attempt in good faith to mutually resolve disputes at a staff level in the first instance. If unresolved, the dispute will be moved to the next level of supervisor in the case of the City, and the Shelter Manager in the case of Friends. If the matter cannot be resolved at that level, Page 19 1 o/1,71 ZO l Z C444t FA^TV4ZVUS �OQ 9ALM Sp9 �2 O V N k k C �GM.ORkRO\k'f9 g41FORN�P» CITY COUNCIL STAFF REPORT DATE: October 17, 2012 NEW BUSINESS SUBJECT: ANIMAL SHELTER PRIVATIZATION FROM: David H. Ready, City Manager BY: Interim Animal Shelter Director SUMMARY The proposed action would approve an Operating Agreement for the Palm Springs Animal Shelter with a non-profit organization. RECOMMENDATION: 1. Approve Operating Agreement for the Palm Springs Animal Shelter, with the Friends of the Palm Springs Animal Shelter. 2. Authorize the Finance Director to make all financial transactions (appropriations, amendments and transfers) necessary to implement the Agreement. 3. Appoint a member of the City Council to serve as Liaison to the Board of Directors of the Friends of the Palm Springs Animal Shelter. STAFF ANALYSIS: This fall, after passing the first year anniversary of the opening of the Palm Springs Animal Shelter, the City has spent a good deal of time evaluating its ability to operate the much larger shelter vs. a model of having a non-profit organization carry out the operations. Staff believes this past years' experience, as well as a growing national trend of non-profits operating shelters, supports the need to shift from a City operated facility to this proposed model. The City of Palm Springs has successfully utilized a model of contracting with private entities that can lend greater specialized expertise to a particular municipal operation (e.g. The Palm Springs Convention Center, Tourism and the Palm Springs Wastewater Treatment Facility). With the opening of the new Palm Springs Animal Shelter in October, 2011, the City went from a 50 year old 4,000 sq. ft. facility to a state of the art 20,000 sq. ft. facility. The City's approach to handling its homeless animal population moved from a ITEM NO. 159 City Council Staff Report October 17, 2012—page 2 Animal Shelter Privatization traditional municipal shelter to more of a sanctuary model where animals are maintained until they can be rehomed. These major changes resulted in an increase in shelter staff from 3.5 employees to 10 employees, as well as increasing the annual operating cost from approximately $331,000 in fiscal year 2010-11 to over $1.05 million in the current fiscal year. Moreover, this year's costs were held down by utilizing temporary employees while evaluating the long term solution to operating the shelter. Continued operation of the shelter by the City next fiscal year utilizing regular employees will increase the annual cost to over $1.3 million. With these cost levels in mind, the Procurement and Contracting Department developed and circulated a "solicitation of interest" document to known entities with animal care experience to gauge the level of interest in a privately operated shelter. Following a month of advertising and searching the City received one Statement of Interest from the Friends of the Palm Springs Animal Shelter ("Friends"). The City staff requested that the Friends prepare a proposal to operate the shelter and that document has been utilized as a basis to negotiate the proposed agreement. A general comparison between the "City Operation" vs. "Friends Operation" is as follows: ITEM CITY OPERATION NON-PROFIT Model Type Municipal Shelter Sanctuary Shelter Days Open 5 6 Hours/Wk Open 30 34 Staff Groomer no yes Registered Vet. Tech staffer no yes Intake Behavior Assessment Minimal "Safer" evaluations Number of Full-time Employees 10 11 Part-time Employees 2 6 Humane Education Not Currently Yes Low Cost Rabies Clinics Not Currently Yes, twice a year TNRM Program Thru Friends Yes Off-site Adoption Programs Thru Friends Yes Foster Program Thru Friends Yes Behavior Rehab Program Thru Friends Yes Transfer/Rescue Program Staff& Friends Yes The business points of the proposed Operating Agreement are as follows: • Privatized Operations begin November 1, 2012. • Initial Contract Term would be 5 years 8 months (to coincide with fiscal year). • Two (3) year options would follow with mutual consent. • The Friends would be required to offer all services normally found at a modern animal shelter. • Compensation for the remainder of the 2012-13 fiscal year would be the funds remaining in the Animal Shelter Budget (3305) as of November 1, 2012 plus a prorated share of the remaining utility budget for the facility. • Compensation for fiscal years 2013-14 and 2014-15 would be a flat $995,000. 2 City Council Staff Report October 17, 2012—page 3 Animal Shelter Privatization • Compensation for the remaining three years of the initial term shall be adjusted based on CPI movement in calendar year 2014. • Facility maintenance would be based on a normal landlord /tenant split. • Friends would be responsible for all medical costs. • Friends would administer the Dog Licensing program for the City and retain the estimated $22,000 in revenue. • Animal Control would be maintained as a separate entity operating from the City Police Department. FISCAL IMPACT: In the first full year of operations it is proposed that the City provide the Friends $995,000 which would allow the City to avoid its estimated cost of operations of $1,305,000; an avoided cost savings of $310,000. Future years will be evaluated to determine annual savings to the City for avoided costs, as appropriate, based on the Friends operating experience at the end of each fiscal year. Allen Smoot, Interim Animal Shelter Director David H. Ready, Ci ger Attachment: Operating Agreement 3 ANIMAL SHELTER SERVICES AGREEMENT THIS ANIMAL SHELTER AGREEMENT("Agreement'), dated this 17th day of October, 2012, is entered into by and between the City of Palm Springs, a California municipal corporation and charter city, ("City"), and Friends of the Palm Springs Animal Shelter, a California non-profit corporation, ("Friends"), with reference to the following: RECITALS A. The City currently provides a variety of animal control and shelter services which involve primarily the enforcement of the laws of the city and the state, including without limitation the provisions of Title 10 of the Palm Springs Municipal Code, regarding the proper care and maintenance of animals. These services include: (1) the operation of an impoundment facility in accordance with Palm Springs Municipal Code Section 10.20.030 which houses dogs, cats, and other animals surrendered by the public; (2) the provision of adoption services; (3) licensing of dogs in accordance with law; (4) assistance in rabies vaccination with local veterinarians; and (5) promotion of the humane treatment of animals. B. In October of 2011 the City closed its original impoundment facility of 4,000 square feet and opened a new, state of the art Animal Shelter of 20,000 square feet. The shelter was constructed with general funds of the City and contributions raised through the efforts of the Friends. Due in large measure to the efforts of the Friends, the impoundment operations have evolved from a traditional shelter model to a sanctuary model that accentuates the goal of re-homing displaced pets and other animals. Staffing has increased from 3 employees to 10 employees and an increase in total budget costs from $331,436 in FY 2010-11 to $1.05 million in FY 2011-12. It is anticipated that if the City continues to operate the Animal Shelter according to existing practices, the annual budget for the operation of the Shelter could exceed $1.3 million in FY 2012-13. C. The City Council continues to look at ways to effectively, efficiently, and affordably partner to provide Animal Shelter Services for the current fiscal year and the future. These efforts include not only the development of long range, stable funding for current services and others desired by the City, the Friends, and the community, but also strategic partnering in operation of the services within the capabilities of the organizations involved in these efforts. One such proposal is the transfer of operational responsibility of the Animal Shelter management and operations to the Friends. D. The Parties recognize and agree that the integration and continuation of Animal Services, traditional animal control, licensing, impoundment and sheltering, adoption, vaccination, and education, together with other services not currently available, will require a continuing public-private funding partnership between the City and Friends and other interested entities, contributors, and the community. E. The Palm Springs Animal Shelter (the "Shelter") encompasses the physical facility consisting of the animal shelter building and grounds as generally depicted on Exhibit "A" to this Pagel t� Agreement, as well as services that seek to meet the needs of the City and the community at large and, in particular,to provide safe, humane shelter for impounded, homeless, abused, neglected, lost or abandoned animals; primarily dogs and cats. It provides a temporary home for animals offered for adoption, held for a short time until their owners can be found, and shelters animals impounded for a variety of public reasons. F. It is the goal of the Parties to ensure that the Shelter operates in a professional manner, incorporating sound principles of kennel science, disease control, sanitation, and other humane animal care techniques. AGREEMENT 1. Grant of Authority. City hereby grants to Friends, and Friends hereby accepts, the right and obligation to manage, operate, use, posses, maintain, occupy, promote, and market the Shelter as an animal shelter for the purpose of providing care and humane treatment for lost, strayed, or homeless animals that are received into the Shelter, and animals seized by the City's Animal Control Officer or held pursuant to court order. The Friends shall perform and furnish, or cause to be performed and furnished, all management, operation, maintenance, promotion, marketing, and administration of the Shelter in accordance with all Legal Requirements, all on terms and subject to limitations of this Agreement. (For the purpose of this Agreement, the term "City Manager" or "Animal Control Officer" means the person, office, or position designated by the City Manager of the City.) Without in any way limiting The Friends right to manage and operate the Facility in accordance with the terms of this Agreement, the Friends, with the input of the City Manager, shall have the authority and responsibility to: (a) determine, establish, and implement the policies, standards and schedules for the operation and maintenance of the Shelter and all matters affecting customer relations; (b) hire, train, and supervise the Shelter employees; (c) supervise and direct all phases of advertising, sales, and business promotion for the Shelter; (d) establish accounting and payroll procedures and functions for the Shelter. City agrees that it will cooperate with the Friends to permit and assist the Friends to carry out its duties under this Agreement. 2. General. A. The Friends shall house animals currently at the Shelter and those received at the Shelter during the term of this Agreement, for the holding or redemption periods set forth in the Legal Requirements. At the end of the appropriate holding or redemption period, animals that have not been redeemed by their owners, shall be offered for adoption or euthanized as provided under the Legal Requirements. Friends shall encourage adoption where the animal and potential adoptive home are both believed to be appropriate. B. In the exercise of its discretion, Friends may hold animals housed at the Shelter beyond the time required by law, provided that the Friends shall not hold animals beyond the time required by law if the same will result in there being insufficient space or facilities for the impoundment of animals seized pursuant to the City's Animal Control functions. Page 12 5 C. The Friends shall keep the Shelter open to the public a minimum of thirty-five (35) hours per week, six days a week, unless otherwise mutually agreed in writing by the Friends and the City Manager, and excepting closures reflective of the holidays determined by City Manager, or other occasional closures for other good and sufficient reasons determined by Friends, in which case notice will be provided to the City Manager at least 24 hours in advance, if possible. In no case will closure to the public compromise care, watering, and feeding of the animals. Subject to the foregoing, the Friends shall establish reasonable hours during which animals may be viewed, redeemed, or adopted. D. The Shelter may be required to house animals other than domestic companion animals, when necessary. Other animals may include livestock, birds, pet rodents, snakes, and other exotic animals. E. In performing is obligations and duties under this Agreement, the Friends shall conform to all applicable ordinances of the City of Palm Springs, the laws and regulations of the State of California, and the Stipulation and Order re Settlement, in the case of Daniel Teutle, et al. v. City of Palm Springs, et al. (Case No INC1103235 —Superior Court, County of Riverside, Indo Branch) and executed by the City and the Friends on June 26, 2012. A copy of this Settlement is on file in the Office of the City Clerk. All such ordinances, laws, and stipulations and orders are collectively referred to in this Agreement as the "Legal Requirements." F. The Friends shall determine, establish, and implement the policies, standards, and schedules for the operation and maintenance of the Shelter and all matters affecting customer relations. The Friends shall be responsible for processing applications for the placement of adoptable animals in accordance with the Legal Requirements. The Friends shall be entitled to collect and retain reasonable adoption and redemption fees, issue dog licenses, and collect and retain payments for dog licenses G. The Friends shall maintain the capacity of the Shelter at its present level. No expansion or contraction from the present capacity shall occur without the written approval of the City. H. Friends shall operate the Shelter in conformance with the general provisions of this Agreement, develop and implement standards of care for its operations at the Shelter, and prepare benchmarks to measure its performance. Written standards and benchmarks will be provided to the City Manager within 120 days of the transfer of operations. 3. Medical Services. A. The Friends shall provide necessary veterinary services to the animals housed at the Shelter or placed in foster care up to $250 per animal or such higher amount as the Friends may establish. The Friends shall ensure that all veterinary services are provided by qualified personnel licensed by the State of California and can be provided on site through the utilization of medical facilities at the Shelter with visiting veterinaries or by utilizing a local veterinary clinic. Any dog or cat deemed adoptable shall be spayed or neutered as soon as practicable when Page13 6 determined to be medically sound. The Friends shall have the discretion to spay or neuter any other animal. B. The Friends shall provide the Shelter with sufficient funding to pay for all reasonable and necessary medical expenses incurred with regard to the treatment of the animals at the Shelter. C. It is the responsibility of the Friends that the Shelter's veterinarian and/or staff are (1) trained and appropriately certified to administer controlled euthanasia solutions, and (2) responsible for obtaining euthanasia solutions, properly maintaining records pertaining to such solutions, and to safely keep the solutions in accordance with the Legal Requirements. D. The Friends shall develop and implement a system whereby animals are assessed for behavior and temperament in a manner consistent with the Legal Requirements. The Animal Care Manager of the Shelter, or the designee of the Executive Director of Friends, shall be consulted prior to a final determination being made regarding an animal's behavior and temperament. Under no circumstances shall the Friends allow any aggressive or dangerous animals to become available for adoption. E. The Friends shall euthanize animals that are irremediably suffering from injury or illness consistent with the Legal Requirements. The Friends shall also euthanize all animals found to be dangerous and or unadoptable as well as all animals found to be in poor health and untreatable. The Friends shall follow the HSUS and American Veterinary Association's recommended protocols for euthanasia. F. The Friends shall be wholly and solely responsible for providing general medical care for any animals in the Shelter, including all veterinary costs, including without limitation spaying/neutering and inoculations and medical supplies. G. The Friends shall provide for proper disease control at the Shelter so as to minimize the spread of disease. 4. Animal Care. A. The Friends shall be wholly and solely responsible to house, care for, water, and feed all surrendered, stray, and impounded animals held at the Shelter or in foster care and hold such animals, regardless of how each such animal was delivered to the Shelter for no less than the holding period of time as prescribed by the State or the City of Palm Springs, whichever applicable holding period is longest. The Friends shall periodically make recommendations to the City Council regarding the amounts to be charged for the impound and housing of animals under the provisions of this Agreement. The Friends shall retain all impound fees paid to the Shelter. B. Friends shall provide for the board and care of all animals that are impounded for any reason by the Animal Control Officer. Friends shall not deviate from any special conditions that the Animal Control Officer places on an impounded animal. The Friends shall provide for the putting to death of any animals so ordered by the courts or other competent authority. C. At a frequency no less than one time per day, all animals are to be fed and provided fresh water, and all water bowls, litters, and cages/kennels are to be cleaned and sanitized. Page14 7 D. The Friends shall provide for the adoption or placement of as many animals as possible in an effort to meet a goal of 90% live release rate. The Friends may place animals that have cleared their holding periods with properly vetted animal rescue groups; under no circumstance, however, shall Friends release animals to any type of a dealer or breeder. The Friends may provide pre-adoption of animals before the animals have cleared their respective hold or redemption periods as required under the Legal Requirements so long as such program is adequately disclosed to all potential adopting residents of the City and applied in a fair and consistent manner. E. The Friends shall provide Trap, Neuter, and Release feral cat programs consistent with past practices of the City or as authorized or approved by the City Manager. F. In accordance with the Legal Requirements, the Friends will provide final arrangements and disposal of any and all animals that die in the custody of Friends at the Shelter, are euthanized, put to death, or are deceased animals brought to the Shelter by Animal Control. Except as expressly provided in this provision, nothing herein shall require the Friends to handle or dispose of deceased animals from any other agencies or organizations. G. The Friends shall provide grooming services at the Shelter for all shelter animals so that at least 40 animals per month receive grooming. Groomings shall be tracked in the shelter monthly statistics. H. The Friends shall establish and sponsor a low cost rabies clinic or event at least two times a year. S. Records and Reports. A. The Friends shall maintain complete records of each animal admitted, housed, or maintained at the Shelter in a manner consistent with the Legal Requirements, using the existing Chameleon animal shelter management software. Any change from this system must be agreed to by the City Manager. All animals impounded shall be assigned an impound number for tracking purposes and records for each animal shall be maintained through the last date of the animal's impoundment. Such records shall include without limitation kennel records, animal medical records, animal behavior records, adoption records, redemption records, euthanasia records, receipts, inventory, fees and charges, and activity records. All records shall be maintained for a minimum of 3 years. B. The Friends shall provide the City Manager with an annual audited financial report no later than seventy-five (75) days after the end of each calendar year during the term of this Agreement. C. The Friends shall be responsible for licensing all dogs as required in the Legal Requirements. The Friends shall be deemed an authorized licensing agent of the City Manager pursuant to the terms of Palm Springs Municipal Code Chapter 10.08, as amended from time to time. The Friends shall periodically make recommendations to the City Council regarding the amount to be charged for dog licenses. The Friends shall retain all dog license fees. The Friends shall offer on-line license payments and related services when practicable. Page 15 8 D. The Friends shall establish accounting and payroll procedures and functions for the Shelter. City Manager agrees that the City Manager will cooperate with Friends to permit and assist Friends to carry out its duties under this Agreement. E. The Friends shall develop and maintain monthly statistical reports, developed in cooperation with the City Manager and posted on the Shelter's Web Site. 6. Employees and Volunteers. A. The Friends shall employ, at all times during the term of this Agreement, such trained and qualified personnel as are necessary to properly perform the duties and responsibilities specified in this Agreement. The Friends shall be solely responsible for the recruitment, hiring, training, supervision, and/or termination of all staff and/or volunteers. The employees of the Friends shall not be employees of the City. B. The Friends shall maintain adequate staffing levels at the Shelter to ensure that all services outlined in this Agreement are provided in an efficient and professional manner. C. The Friends shall establish, promote, and operate volunteer and/or community service programs and shall assume liability for, appropriately screen, supervise, and train all such volunteers assisting at the Shelter. D. It is expressly understood and agreed by the Friends that its officers, employees, and agents will not be deputized and will not be authorized to enforce any rules, regulations, ordinances or laws except as specifically provided in this Agreement. The City, through its authorized agents, will enforce all animal control ordinances. E. The Friends shall provide a minimum of 14.2 FTE staffing for the shelter operations. In the event that animal populations decrease substantially due to the positive programs established by the Friend, the Friends may petition the City for a lower FTE level. Typical positions may include those similar to the following: (a) Executive Director (b) Animal Care Manager (c) Animal Health Technician (d) Volunteer Coordinator (e) Customer Service and Office Manager (f) Foster and Transfer Coord. 50% (g) Adoption Counselor 75% (h) Intake Coord. 75% (i) Groomer 50% 0) Lead Animal Care Attendant (1) (k) Animal Care attendant (5) (1) Animal Care Attendant 50% (1) (m)Animal Care Attendant 20% (1) Page 6 5 7. Insurance and Indemnity. A. The Friends shall maintain Workers' compensation and disability insurance as may be required by law with respect to all persons (other than Animal Control Officers) working at or performing services for or at the Shelter. Certificates of such insurance shall be filed annually with the City Clerk. B. The Friends shall, at its sole cost and expense, procure such public liability insurance from insurers acceptable to the City's Risk Manager as will protect the Friends and the City from any claims for damages to property and for personal injuries, including, without limitation, death, which may in any way arise hereunder or from the services provided by the Friends or anyone directly or indirectly employed by the Friends. Such liability insurance shall have a policy limit of not less than Five Million ($5,000,000.00) Dollars per occurrence, and shall name the City of Palm Springs as an "additional insured" and shall not be cancellable without prior notice to the City. C. Copies of all policies and related endorsements shall be delivered to the City Clerk with full premiums paid on or as promptly as practicable after the commencement date of this Agreement. All policies shall be subject to the written prior approval of the Risk Manager for adequacy in form and protection. D. Notwithstanding anything contained in this Agreement to the contrary, the Friends shall protect, save, and keep the City harmless and indemnify the City from and against any and all claims, losses, costs, damages, suits,judgments, penalties, expenses, and liabilities of any kind or nature whatsoever arising after November 1, 2012, directly or indirectly arising out of or in connection with this Agreement and the performance hereunder by the Friends of the terms and conditions of this Agreement. 8. Working with the Citv. A. The Friends and the City Manager shall coordinate the documentation, monitoring, and handling of all animals under quarantine in conformance with the Legal Requirements. The Friends shall immediately report to the City Manager the improper or accidental release of any animal from the Shelter. B. Animal Control personnel of the City shall be permitted to use the Shelter and related equipment to the extent necessary in the performance of their duties. C. The Friends shall promote animal care and control in accordance with the Legal Requirements and shall provide public assistance and referral of all issues related to animal control to the Animal Control Officer. 9. Maintenance and Repair of the Shelter. A. The Friends shall provide the Shelter with sufficient funding to purchase and maintain an adequate inventory of all consumable supplies and equipment necessary to conduct Shelter operations. Page17 10 B. The Foundation shall do nothing detrimental to the facilities, equipment, or property of the Shelter. The Friends shall not intentionally harm the Shelter building, grounds, or equipment. Upon City determination of intentional harm (through willful act or neglect) to building, grounds, or equipment, the Friends will be financially responsible for all repairs and may be subject to termination of this Agreement as provided in this Agreement. The Executive Director or the Executive Director's designee shall contact the City Manager when repairs to the Shelter are needed. The Friends are responsible for contacting City Manager in a timely manner for emergency or non-routine maintenance issues that may arise. C. Title to the Shelter and the furniture, furnishings, fixtures, appliances, and equipment remaining at the premises on the commencement date hereof and installed during the term of this Agreement or any extension thereof, shall remain vested in the City. D. The Friends shall be responsible for minor cosmetic maintenance such as small drywall repairs, painting, light bulb changes, and regular deep cleaning of the facility. The Friends shall also be responsible for maintenance of washer/dryer, dishwasher-sanitizers, SMT Pressure cleaning system including the filters (but not the pumps which will be maintained by City), computer systems and servers, phone system, CCTV system. E. The Friends shall be responsible for all custodial maintenance, maintaining the Shelter in a neat and clean condition, and specifically for cleaning the Shelter on a daily basis. F. The Friends shall be responsible for all utilities, including without limitation, electric, gas, telephone, water, and trash removal. G. Friends and its agents, employees, or contractors subcontractors or other representatives shall not bring upon the Shelter, or permit or authorize any other person or entity to bring upon the Shelter, any hazardous materials, hazardous substances, hazardous wastes, pollutants, asbestos, polychlorinated biphenyls (PCBs), petroleum or other fuels (including crude oil or any fraction or derivative thereof). Notwithstanding the foregoing, Friends may bring such fuels and lubricants onto the Shelter as may be required for operation of construction vehicles during construction and backup power for generators during, maintenance or repair of the Friends' Facilities. In addition, Friends may also bring onto the Shelter, any lead-acid batteries, cleaning solvents, and other chemicals necessary for proper utilization and maintenance of the Friends' Facilities. In bringing any materials or substance onto, or using any materials and substances on, the Shelter, Friends shall comply with all federal, State, and local government laws, regulations, and rules. Friends shall be solely responsible for any damages or costs incurred by Lessor due to any environmental contamination, arising from the presence or use on Friends' behalf of any hazardous materials or substances that Friends, its agents, employees, contractors, subcontractors or other representatives bring onto the Shelter. 10. City Obligations. A. For fiscal year 2012-13 the City will contribute funds in an amount equal to the unexpended budgeted funds that remain in the current fiscal year City's budget accounts attributed to the management and operation of the Shelter, including prorated costs of utilities Page18 lY and custodial maintenance according to the following schedule: 50% on November 1, 2012 and 50% on February 1, 2013. For fiscal years 2013-14 and 2014-15,the City shall contribute the base amount of Nine Hundred and Ninety Five Thousand Dollars ($995,000), to be paid in four equal installments on June 1, Octoberl, February 1, and May 1 of each fiscal year. For each of the next three Fiscal Years the City shall contribute an amount equal to the base amount adjusted in an amount equal to the increase or decrease in the Consumer Price Index published by the United States Department of Labor, Bureau of Labor Statistics (1982-1984 = 100) [the "CPI"] for "All Items-All Urban Consumers", for the Los Angeles County-Riverside-Orange County Metropolitan Statistical Area, during the preceding year. If the option periods are exercised the contribution amount shall be negotiated in good faith by the Parties. B. The City shall be responsible for all maintenance of the air conditioning system in the Shelter. City Manager shall provide training on the control system so that the Friends can reasonably adjust the temperature in certain areas of the Shelter authorized by the City Manager. C. City shall also provide maintenance of the Shelter's landscaping. D. City will provide and assign to Friends the version of Chameleon Shelter Management computer software currently used at the Shelter to maintain Shelter records and provide training in its use, subject to any applicable software licensing or maintenance agreements that may be necessary for the Friends to enter into. E. The City will continue to include the Shelter on the City's real property insurance policies. F. The City Council will periodically review and establish license and impound fees in amounts the City Council reasonably determines will allow the Friends to recover their costs in providing the licensing and impound services pursuant to the terms of this Agreement. G. The City Council will appoint a member of the City Council to serve as Liaison to the Board of Directors of Friends. 11. Term and Termination. A. The term of this Agreement shall be five (5) years and eight (8) months, commencing on November 1, 2012 and ending on June 30, 2015. The term of the Agreement may be extended twice for three (3) years for each extension, with the mutual consent and agreement of the Parties. B. The Parties intend that any issues related to operations at the Shelter or issues relating to interactions between the employees or agents of the parties, or any issues concerning rights and responsibilities under this Agreement, be resolved at the lowest possible level.Toward that end,the Parties agree to attempt in good faith to mutually resolve disputes at a staff level in the first instance. If unresolved, the dispute will be moved to the next level of supervisor in the case of the City, and the Shelter Manager in the case of Friends. If the matter cannot be resolved at that level, the issue will be addressed by the City Manager and the Executive Director to mutually resolve the dispute. If, at this level, the Parties are still unable to reach resolution, then the Parties may mutually agree to submit the issue in controversy to mediation through a mutually agreed upon Page19 12 local mediator. Any costs for mediation shall be borne equally by the Parties. If the Parties are unable to reach resolution through mediation, the Parties shall then be free to exercise their respective rights under the Agreement through whatever means are available under law. C. Either party may terminate this Agreement by giving written notice to the other party of not less than twelve (12) months. In the event of such termination, the City shall be responsible for payment to the Friends only for services actually rendered through and until the final date of termination. 12. Miscellaneous Provisions. A. The Friends shall comply with the Recycled Water Requirements as provided in Exhibit "B" to this Agreement and as such requirements may be amended from time to time by actions of the State Department of Public Health and the Desert Water Agency. The City shall cooperate with the Friends in the Friends compliance with these requirements. B. The Friends represents that it is legally qualified to perform all of its obligations and duties as required under the terms of this Agreement and that it is properly incorporated as a Not for Profit Corporation under the laws of the State of California. C. The City Manager has the right to make inspections of the Shelter upon reasonable notice during business hours to assure compliance with the requirements of this Agreement and to ensure that the animals are cared for in a humane manner consistent with the provisions of this Agreement and the Legal Requirements. D. Noting in this Agreement shall be construed as establishing a partnership under California law between the parties or to authorize either party to this Agreement to incur any debt or obligation of the other. Neither the City nor the Friends shall be considered as the agent of the other nor shall either have the right to bind the other in any manner whatsoever. E. The Friends shall not assign this Agreement or otherwise engage any other organization to perform the work or services to be performed under this Agreement without the express written consent of the City Council. F. It is the express understanding of the parties that this Agreement does not constitute an employer-employee arrangement. The Friends is an independent contractor and covenants that it will conduct itself consistent with such status. G. It is understood that continuation of the Agreement between the Parties is subject to available city funding in annual appropriations during the budget process. H. This Agreement represents the entire understanding of the City and the Friends as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered by this Agreement. This Agreement shall be governed by the laws of the State of California and construed as if drafted by both City and the Friends. Any action, arbitration, mediation, hearing or other proceeding related to this Agreement shall be conducted only in the County of Riverside. I. Any written notices required pursuant to this Agreement shall be made by certified or registered mail, return receipt requested,or reliable overnight courier and delivered to the following address: Page 110 13 To City: City of Palm Springs 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 Attn: City Manager To Friends: J. Each party agrees to and shall do and perform such other and further acts and properly execute and deliver such other and further documents as may be reasonably necessary, expedient or convenient to implement the intents and purposes hereof. K. Whenever this Agreement requires or calls for the approval or consent of any party hereto, such approval shall not be unreasonably withheld,delayed,or conditioned. L. In the event of any dispute, arbitration, or litigation arising out of or relating to this Agreement, or the breach or performance of it, the prevailing party shall be entitled to recover, in addition to any other appropriate relief, reasonable attorneys'fees and legal costs incurred in connection therewith. M. In the event any provisions of this Agreement is deemed or construed by arbitration or a court of competent jurisdiction to be unenforceable, the remaining provisions shall nevertheless remain binding and enforceable to the maximum extent possible. IN WITNESS WHEREOF,the parties hereto have executed this Agreement and made it effective as of the day and year set forth above. Friends: FRIENDS OF THE PALM SPRINGS ANIMAL SHELTER A California Non-Profit Corporation By: Title: Dated: CITY: CITY OF PALM SPRINGS A California municipal corporation and charter city By: Title: Dated: ATTEST: City Clerk APPROVED AS TO LEGAL FORM: City Attorney Pagel11 14 EXHIBIT A (Site Plan of Animal Shelter) Page 112 15 to r, SWATT I MIERS ARCHITECTS �"e'o5 ,.c< - a I.ms eas O I p 1 � I O i V l�fP� s(. e ` PALM SPRINGS X HLL ANIMAL CAR! O - FACILITY -1 W Oy - «. r o s o�0 .-0 i i o o ^o iII i m -- ----- d------------- _fft - ll SITI 0 0 .nc.ra O O Qu � mwuw ux wunwxo wrnm rw am manwsu SITE PLAN O' oO V w °' if mc�uw" p ssM aB4ss`mrtwan°ia"'nrmw°pm1°�ummou¢on (D ® muv w 0' Off' mno russ a .wm+mrs w.wry e.oum m urw rm�vae 0 o A1.01 EXHIBIT B (Recycled Water Requirements) Page 113 17 Recycled Water Requirements The Palm Springs Animal Shelter utilizes reclaimed water for all kennel wash-down as well as flushing of toilets and urinals. As the only facility in all of Riverside County to hold a permit (CDPH Project No. 3390005-711) for utilization of reclaimed water inside of the building there are State requirements to maintain the permit. Site Supervisor: The Operator shall appoint a Recycled Water Site Supervisor at the facility who will obtain training and certification on the operational practices related to recycled water. The Site Supervisor's contact information will be provided to the State Department of Public Health and Desert Water Agency for emergency purposes. The Site Supervisor shall be responsible for the following: (a) Recycled water use in accordance with the Desert Water Agency, State Department of Public Health and the Regional Water Quality Control Board requirements and preventing potential violations of those guidelines; including required start up, cross connection and backflow prevention testing; and (b) Maintaining copies of applicable permits on-site, and (c) Using Best Management Practices to eliminate irrigation runoff, overspray, and ponding; and (d) Operating, repairing, maintaining, and monitoring the recycled water system to minimize failure of equipment and materials; and (e) Knowledge of the basic concepts of backflow and cross-connection prevention, system testing and related emergency procedures; and (f) Ensuring that there are no cross-connections made between the drinking water and recycled water systems; and (g) Being present at all cross-connection tests; and (h) Take action to contain any unauthorized discharge of recycled water; and (i) Educating all maintenance personnel and volunteers on the proper use of recycled water and reminding them that it is not approved for drinking, washing or cooking; and Q) Notifying Desert Water Agency immediately in the event of any recycled water line break, spill, unauthorized discharge, cross-connection, fluctuation in piping system pressure, major change in water quality or any other failures, violations and emergencies that occur involving the recycled water or drinking water systems; and (k) Notifying the Desert Water Agency of any signs designating landscape areas being irrigated with the recycled water that need to be replaced; and (1) Notifying the Desert Water Agency as to any change in ownership of the property; and (m)Obtaining prior approval from the Desert Water Agency for all proposed changes and modifications to any on-site facilities. 18 Training: Friends will provide appropriate training for all staff and volunteers of the Animal Care Facility in the correct operations and use of the existing recycled water system, procedures for use of the SMT Wash-down system, and the facilities other uses of recycled water. Only trained staff and volunteers will be allowed to operate the SMT kennel wash-down system. The SMT water supply, in public areas, will be through locked control boxes. The public will be restricted from access to the SMT water supply. Contacts: (a) Desert Water Agency: Debbie Randall, P.O. Box 1710, Palm Springs, Ca. 92264, (760)323-4971 (b) State Department of Public Health: Chun Huang, Ca. Dept. of Public Health, 1350 Front Street, Room 2050, San Diego, Ca. 92101 (c) Regional Water Quality Control Board: Robert Purdue, 73-720 Fred Waring Dr., Palm Desert, Ca. 92260 33. Council Liason: Establish language the sets up a position of City Council Liason to the Board as a voting member of the Bd of the Friends. 19