Report Prepared by: Lieutenant Kalvin Haygood, Merced Police Department
Title
SUBJECT: Approval of Professional Services Agreement with Vetcor of Merced, LP dba Valley Animal Hospital for Veterinary Services
REPORT IN BRIEF
Considers approving a Professional Services Agreement with Vetcor of Merced, LP, doing business as Valley Animal Hospital, to provide veterinary services for Animal Control operations and Police Department K9s through July 31, 2029. The agreement formalizes the City's longstanding relationship with Valley Animal Hospital, establishes the scope of services, and updates the reimbursement limit for Animal Control cases from $250 to $400 per case to reflect increased veterinary costs.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a Professional Services Agreement with Vetcor of Merced, LP dba Valley Animal Hospital for veterinary services through July 31, 2029; and,
B. Authorizing the City Manager, or designee, to execute the agreement and any documents necessary to implement its provisions.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to other than recommended by staff; or,
3. Deny; or,
4. Refer to staff for consideration of specific items.
AUTHORITY
Merced Municipal Code Section 3.04.
CITY COUNCIL PRIORITIES
This item supports the City Council's Public Safety priority by ensuring uninterrupted veterinary care for the City's Animal Control program and Police Department K9 Unit while maintaining emergency response capabilities and animal welfare.
DISCUSSION
The Merced Police Department Animal Control Division and Police Department K9 Unit have utilized Valley Animal Hospital for veterinary services for many years. Valley Animal Hospital provides routine medical care, emergency treatment, diagnostic services, surgical procedures, and other veterinary services necessary to support animals in the City's custody and Police Department K9s.
To formalize this longstanding working relationship, staff is recommending approval of a Professional Services Agreement with Vetcor of Merced, LP, doing business as Valley Animal Hospital. Prior to recommending this agreement, the Police Department distributed a Letter of Interest to veterinary service providers seeking qualified firms capable of providing the required services. No additional responses were received. As a result, Valley Animal Hospital remains the only known local provider willing and able to provide the comprehensive veterinary services necessary to support the City's Animal Control operations and Police Department K9 Unit.
In addition to providing Animal Control services, Valley Animal Hospital serves as the primary veterinary provider for the Police Department's K9 Unit. During Fiscal Year 2025-2026, K9 veterinary expenditures totaled $1,258, and annual costs are expected to average approximately $1,500 for routine and emergency veterinary care. These costs are funded through the Police Department's approved K9 operating budget.
The agreement establishes the scope of veterinary services, payment procedures, insurance requirements, indemnification provisions, and other standard contractual terms. The agreement will remain in effect through July 31, 2029.
The previous reimbursement cap of $250 per Animal Control case was established in 2013. Since that time, veterinary operating costs have increased substantially. Valley Animal Hospital requested that the reimbursement limit be increased to $400 per case to better reflect the actual costs associated with examinations, diagnostics, emergency treatment, surgical procedures, medications, and continued care. Valley Animal Hospital estimates it absorbed approximately $15,000 in unreimbursed Animal Control costs during 2024 and approximately $9,000 during 2025 because of the existing reimbursement limitation.
During Fiscal Year 2025-2026, the City expended approximately $43,531 for Animal Control veterinary services and $1,258 for Police Department K9 veterinary care. Based on historical utilization and the increased reimbursement limit, Animal Control veterinary costs are projected to increase by approximately $1,000 per month beginning in Fiscal Year 2026-2027. Staff estimates annual Animal Control veterinary expenditures of approximately $60,000, based on an average monthly cost of $5,000.
Under the agreement, Valley Animal Hospital will continue providing walk-in, semi-immediate veterinary care for injured stray and unowned animals during normal business hours. Animals requiring after-hours emergency treatment will continue to be referred to regional emergency veterinary hospitals, consistent with current practice. The agreement also provides that treatment decisions, including euthanasia when medically appropriate, remain within the attending veterinarian's professional medical judgment.
Approval of this agreement will ensure uninterrupted veterinary services for the City's Animal Control program and Police Department K9 Unit while establishing a formal contractual relationship governing the services to be provided and the responsibilities of both parties.
IMPACT ON CITY RESOURCES
During Fiscal Year 2025-2026, the City expended approximately $43,531 for Animal Control veterinary services and $1,258 for Police Department K9 veterinary services, for a total annual expenditure of $44,789.
For Fiscal Year 2026-2027, Animal Control veterinary expenditures are estimated at approximately $60,000, reflecting the increased reimbursement limit of $400 per case and an anticipated increase of approximately $1,000 per month over historical expenditures. Annual K9 veterinary costs are expected to remain approximately $1,500, resulting in a total estimated annual expenditure of approximately $61,500.
Funding for these services will be requested annually through the Police Department's Animal Control and K9 operating budgets, subject to City Council approval through the annual budget process.
ATTACHMENTS
1. Valley Animal (Vetcor) Service Agreement 2026-2029