Here is a rip off you seldom see.
There was a motion before Council this past Friday to authorize a contract to Eric Jones DVM to pay him $1,600,000 for 5 years to provide spay neuter services to LAAS and the community as part of a private practice. It passed.
The City gives Jones free rent, free utilities, provides the major equipment so that he can move his private practice from Pacoima to the SLA shelter.
He can run a private practice out of the shelter, offering services to the public.
What does the City get?
It gets a 7% discount on spay/neuters he does on shelter animals, up to $15,000 from a shot clinc, and 10% of Jones private practice net income.
Forgot. The City also gives him $1,600,000.
From Council Agenda notes and minutes of Boks message to the Commission.
From my Blog (http://www.imalwatch.blogspot.com/):
LAAS/Jones sweetheart deal; City to pay Jones $320,000 to move his private practice from Pacoima to the SLA shelter to run a spay neuter clinic/ So, whatْs wrong?
Jones only gives the City a 7% discount for spay/neuters for LAAS!!
Jones gets free utilities.
Jones gets most of the major equipment needed for the clinic from the City.
Jones can run a private practice out of SLA and he gives 10% of the net to the City.
Jones give the City up to $15,000 a year out of shot clinics.
AND , the City pays him $1,600,000 over 5 years with an extra four years of yearly options.
From Commission minutes; my comments are in blue.
Transmittal from the Mayor of a City Administrative Officer0150-08240-0000 report, dated June 14, 2007, relative to a contractbetween the Department of animal Services and Dr. Eric D. Jones, DVM toprovide animal spay/neuter surgeries at the South Los Angeles Spay andNeuter Clinic, for a term of five years, with up to four one-yearrenewal options, at an estimated $1.6 million over the five year period.Date Received
This RFP and subsequent recommendation of award of the Agreement is an important early step before the Departmentْs expansion of its animal shelter and care facilities, which will feature fully-equipped spay/neuter veterinary clinics, and therefore will enhance the Cityْs continuing efforts to spay/neuter the animal population.
What is does not say here is that LAAS is only getting a 7% discount on spay neuters on LAAS animals.
With the South Los Angeles clinic in the lead, these other five new clinics will provide spay and neuter services for shelter dogs and cats, feral cats as part of a sterilization program, and rabbits; services may also be provided to the public who may bring in their pets for sterilization and related medical assistance. These services are key to the Departmentْs goal of becoming the largest City in the United States with a successful ôNo-Kill¤ policy.
Yes, but letْs look at the agreement. Jones only gives the city a 7% discount on spay/neutering of LAAS animals!!! This is astounding. The public gets a 7% discount!! AND, get this, he can also conduct a private practice but must keep his fees at fair market rates and, he only has to give the City 10% of his private practice net income.
Under the proposed Agreement, which is based substantially on the RFP, Dr. Jones will perform spay/neuter surgeries on dogs, cats, and rabbits, and other ancillary medical procedures associated with the surgical sterilization, in conformance with all surgical standards as dictated by the California Veterinary Medical Practice Act. Dr. Jones shall also provide related veterinary services such as cursory pre-surgical physical examinations on all surgical candidates; Wellness Clinics (vaccine clinics); emergency medical treatments; micro-chipping all dogs, cats, and rabbits that are adopted from the Shelters if mutually agreed upon by Dr. Jones, the adopter, or requested by the Department; post-treatment care; and other services.
Notice, this long winded paragraph says nothing about provided exclusive no-cost services for LAAS animals. We are paying him $1,600,000 over 5 years for him to run his own private practice on the Cityْs dime. He gives LAAS a 7% discount. The City pays his utilities.
SIGNIFICANT AGREEMENT TERMS AND CONDITIONS:
Prices of Services
Charges for spay/ neuter services are as set by the Board; prices of other services to the public shall be subject to Department disapproval, but are not to exceed prevailing market prices in the immediate area.
(That is, he can proved services to the public as a private practitioner.)
The Department shall provide most major equipment required, such as surgical tables and sterilizers, and make them available for use by the contractor. Dr. Jones will be required to purchase all additional equipment and all medical supplies necessary to provide services.
Well, well, LAAS also provides the major equipment also.
Payments to City
In consideration for the use of City property and equipment, Dr. Jones shall reimburse the Cityْs Animal Sterilization Fund for its costs and expenses quarterly as follows: a seven percent (7%) discount below pre-set base prices on all spay/neuter services billed to the Department; a payment to the Department of fifty percent (50%) of net profits from Wellness (vaccine) clinics up to $15,000 per year; and a payment to the Department of ten percent (10%) of other proposed veterinary services to be provided to the public by this clinic.
What the City gets out of this contract:
A 7% discount on all spay/neuters for the City. 7%!!! He will also give $15,000 to the City out of shot clinic profits.
Cost of Operations
The cost of setting up, staffing, maintaining, and performing related services under the Agreement shall be the responsibility of Dr. Jones. No extra charges shall be paid by the Department or the pet owner for dog, cat, and rabbit spay, and neuter surgery beyond those stated in the Agreement.
The City shall provide electricity, water, heating and air conditioning, and maintain the delivery systems thereof. Dr. Jones will be responsible for all additional utilities, including telephone service and data.
Dr. Jones has to pay for his own phone, but power, heating and water are paid for by the City.
Faithful Performance Bond
A Faithful Performance Bond shall be required of Dr. Jones prior to starting operations, for an amount of $36,600.00, to guarantee faithful performance of all work, within the time period prescribed, in a manner satisfactory to the City.
Dr. Jones exceeds the minimum experience in spay/neuter programs required in the RFP, having been practicing veterinary medicine for the past six years. He has provided such services within the City of Los Angeles, operating a veterinary clinic in Pacoima since 2002, during which time he provided spay/neuter services to the Department. As Dr. Jones proposed to move his staff and equipment from his current location to the South Los Angeles clinic, start-up operating costs will be minimized, which will allow him to focus his resources on continuing service levels and not on significant start-up costs.
Dr. Jones proposed a seven percent (7%) discount below pre-set base prices on all spay/neuter services billed to the Department; a payment to the Department of fifty percent (50%) of net profits from Wellness (vaccine) clinics up to $15,000 per year; and a payment to the Department of ten percent (10%) of other proposed veterinary services to be provided by this clinic to the public.
The City gets 10% of Jones net profit of services offered to the public OUT OF CITY FACILITIES!! He is bringing his private practice from Pacoima.
The review of Jonesْ proposal, his interview, and confirmation of his credentials indicated sufficient qualifications and experience to operate the clinic as proposed. The evaluation of his proposal did not lend itself to use of a point system as there were no other competing proposals received in response to the RFP.
It is hard to believe that with this cushy agreement, there were no other bids.
There is no impact to the General Fund. Funds will be used from Fund 543, Spay and Neuter Trust Fund; Fund 842, Animal Sterilization Trust Fund; and Fund 841, Veterinary Medical Trust Fund, in accordance with trust fund limitations and as they would be paid to an outside veterinarian. Due to savings of 7% on sterilizations, funds will be available to accomplish more surgeries. Revenue from work for the public will also supplement the funding for additional spay and neutering.
That is, what the City gets ouit of all this is a 7% discount on spay/neuter for LAAS animals, and 10% of his net private practice income.
What this particular announcement does not say is that the City is also paying him $320,000 per year for a 7% discount on LAAS spay/neuters.