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Remember, Jone is not just getting a $320,000 a year contract amount, he is also getting fees from the City for spay/neuters performed for LAAS, which might be another $350,000 plus any services performed for the clinic as a private practice. We may be talking about $800-900,000 a year. AND, he does not have the usual expenses EVERY OTHER VET CLINIC FACES: facility rent, utilities and outlay of a lot of money for "major equipment."
What will Jones give the City in return?
He gives a 7% discount on LAAS requested spay/neuters. That's it basically.
Let us say he provides 2,500 cat spay/neuters and 2,500 dogs.
Let us say his fee is $60 (average for spay or neuter) for a cat and $90 average for dogs (spay/neuter from 8 lb males to 90 lb females). For all I know he is charging double this. Some one call his clinic to find out how much he charges the general public and let me know. I don't know how he is listed.
He gets approximately $150,000 for the LAAS cats he treats and $225,000 for dogs. He gives $25,000 back to the city.
The City is paying him $320,000 per year on contract, and he gets another $350,000 a year from the spay/neuters he does for the city. Therefore, he is getting $670,000 a year from LAAS and the City for 5,000 spay/neuters. If the city were to pay private vets $100 for each spay neuter instead of $30 or $60, the 5,000 operations would cost the City $500,000. BUT, Jones gets free rent, free utilities and free major equipment. He moves into a free, fully equipped clinic and is guaranteed at least $670,000 a year just from the City and who knows what other from a general practice with the public.
However, there is nothing in the contract that says how many spay/neueters Jone is to provide for LAAS. It must be mutually agreed upon. Ditto other services for LAAS and the public.
This is a deal like no other.
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But, it allows Boks to say he opened a spay neuter clinic in a shelter, even if it provided no value to anyone except Jones and Boks.
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Details of the contract from January Commission Minutes:
http://www.laanimalservices.com/PDF/commission/2007/012207Agd.pdf
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2 comments:
You're right. That is a sweetheart of a deal. Who is this Dr. Jones? What is his relationship with Boks and City people? Who is negotiating this contract?
Re the previous post. I have included his bio from the Animal Commission notes.
Go to the LAAS site and to the Commissioners' page. Do a search on "Eric Jones" in the minutes of the Commission. Three meetings discuss his credentials, and details of his contract.
I saw the provisional contract 6 months ago. At that time it was more reasonable for the city. Jones demanded more and got more. The City said he was the only bidder. Bull. They didn't advertise very well in the usual vet journals and vet employment venues. Ed said it was too expensive, I heard.
That contract then called for Jones to pay 50% of the net income after expenses to the City for rent of the clinic on shelter proprty. It also called for a ceratin number of spay/neuters to be performed. Those provisions are gone now. He can do whatever he wants. Of course the City can cancel his contract if they don't like what he does.
But he can do private practice to the general public, making perhaps another gross $300,000 a year. He might be able to hire another vet at $120,000 and do even more in this general practice. He might be making close to $1,000,000 a year with his private practice, on City property, subsidized by a guarranteed $320,000 plus free rent, utilities and major equipment.
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