Fresno’s planned animal shelter just got $2.3 million more expensive. Here’s why
The $15 million animal shelter Fresno is looking to build just got more expensive Thursday despite reluctance from members of the City Council to spend more.
The council unanimously approved a $2.3 million increase to the contract with Quiring General LLC, which represents the second increase in spending on the contract since it was first approved in May.
The original agreement was approved May 21 with Northstar General Inc. for a $14.5 million shelter to be built on 4.8 acres near Airways Boulevard and Gap Drive.
Northstar General Inc. has not been able to get the bonds it needed to complete the project, according to city staffers. So the council in August approved a business alliance between Northstar and Quiring. Both companies are based in Fresno.
Much of the new expense has to do with equipment for the inside of the building, which was not part of the original deal for the structure alone, according to city staffers.
The city is planning to use a $22 million bond over 15 to 20 years to cover the costs, which — including non-construction expenses — is about $20.7 million, staffers said.
Mayor Lee Brand said the original bid was for a generic animal shelter, which was not site-specific. “In other words, we didn’t know where it was going to go,” he said.
SPCA contract expired
The city is in a difficult situation because Fresno’s contract with the Central California Society for the Prevention of Cruelty to Animals was officially set to end in June, but the animal nonprofit has agreed to work with the city through 2021, according to the CCSPCA.
Because that relationship is ending, the city entered into an emergency agreement without a process that asked for bids from multiple contractors.
Councilmember Esmeralda Soria said she gave her support to the increase reluctantly.
“I am extremely concerned,” she said. “I think this is an unfortunate example that we had to proceed quickly.”
Councilmember Mike Karbassi said city staffers have acted in a trustworthy manner in keeping the spending under the anticipated bond funding.
“I think this is one of those cases where we’ve been pretty responsible,” he said.
The CCSPCA, which collects strays, performs pet adoptions and maintains the local animal shelter, decided to end its relationship with the city. The idea is to eventually hire Fresno Humane Animal Services to operate the new shelter.
Payment plan
Buying the equipment for the shelter through the contractor may mean a savings when the Fresno Humane Animal Services moves in, city staffers said.
Councilmember Miguel Arias noted that the lifespan of at least some of the shelter-related equipment, like cars, is much shorter than a bond debt.
He said paying for the equipment in the shelter with a bond is unusual compared with how the city would equip a police or fire station. “We pay for the equipment out of pocket. We don’t bond it out for 30 years,” he said.
Officials say they expect a bond debt of 15 to 20 years, which is shorter than Arias implied but longer than the life of some equipment, like city-owned vehicles. Cars last seven to 10 years, according to Assistant City Manager Jim Schaad.
He said paying for the equipment with the bond is unusual, but the shelter is an unusual circumstance. “Under normal circumstances, I wouldn’t recommend it,” Schaad said.
Arias argued borrowing money to pay for equipment sets a new standard for projects.
Karbassi said the shelter is a project the city was not expecting to undertake and came out of an emergency situation — so the city is not setting precedence for future projects.
The city has worked with UC Davis and Fresno Humane Animal Services to make sure the shelter meets the city’s needs, Schaad said.
Gap land
The land purchased from Gap for $1 was a returned favor of sorts. Gap has been in Fresno since 1999 with a huge distribution facility near Clovis and Shields avenues. Gap bought 216 acres from the city in 1997 for $2. The site now includes a 2 million-square-foot distribution center.
City leaders and the nonprofit CCSPCA have a strained history, which dates back most recently to 2011 and 2012.
Facing harsh criticism from animal advocates and politicians over euthanasia rates, the SPCA threatened to end contracts with both Fresno County and the city of Fresno. County leaders eventually opted for another service provider.
This story was originally published December 3, 2020 at 1:22 PM.
