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HomeMy WebLinkAbout07/06/2010, C 8 - CONTRACT WITH COUNTY FOR ANIMAL CARE AND CONTROL SERVICES FOR FY 2010-13 councilJu jJul 6 2010 ac,Enaa Report N�CITY Y OF SAN LUIS O B I S P O FROM: Deborah Linden, Chief of Police SUBJECT: CONTRACT WITH COUNTY FOR ANIMAL CARE AND CONTROL SERVICES FOR FY 2010-13 RECOMMENDATION Approve a three-year contract with the County of San Luis Obispo for the continued provision of Animal Care and Control Services from July 1, 2010 to June 30, 2013 in the amount of$151,346 for the first year, with annual CPI adjustments thereafter, and authorize the Mayor to execute the contract. DISCUSSION Background For many years, the City has contracted with the County of San Luis Obispo for the provision of Animal Care and Control Services. Services provided pursuant to the contract include: emergency and non-emergency response of Animal Services Officers for injured and stray animals; investigative services for animal bites, abuse, and neglect; sheltering and quarantine services; dog licensing; animal adoption and other services as required either by State law or City Municipal Code. The Police Department administers the contract on behalf of the City. The last three-year contract with the County expired on June 30, 2009. In May 2009, the City was notified by the County that contract costs would substantially increase. Contract costs had already increased since 2006 largely because the County had not been achieving full cost recovery from the cities utilizing their services. However the cost increases being proposed for 2009 through 2012 caused concern for all of the cities involved. Staff representing all seven contract cities worked with the County to form an Animal Services Committee to conduct an in-depth study and analysis of the animal services provided to the cities and the associated costs. The study team, comprised of representatives from County Administration and the County Health Agency, the County Animal Services Manager, the Police Chiefs from the Cities of San Luis Obispo and Arroyo Grande, and the City of San Luis Obispo Finance Director, began meeting in June 2009 and completed the study in May 2010. During this time, the Council authorized two contract extensions for the County to provide animal control services through June 30, 2010. Study Findings The Animal Services Committee met approximately six times during the study period. The County representatives on the committee were open and collaborative in their approach and provided an abundance of information to the City representatives to increase understanding about the Animal Services function, including laws governing the treatment of animals and the costs /V�� County Animal Services Contract FY 2010-13 Page 2 involved in providing the services. The committee experience proved to be extremely worthwhile and productive, and the group has agreed to continue as a new Animal Care and Control Coordination Group in order to maintain open lines of communication and collaboration among the County and the contract cities. In the future, the group will focus on reasonable methods to promote responsible ownership of animals through licensing and micro-chipping in order to reduce costs for the contract cities and the County and promote increased safety for pets. The following are key findings from the committee's analysis of the animal services being provided to the cities: 1. Program costs are reasonable: The County provides a wide variety of animal services, many of which are driven by legal requirements and community expectations. The total budget for the Animal Services Division for FY 2010-11 is about $2.4 million, down from $2.7 million the previous year. Costs would be significantly higher were it not for the use of county jail inmates and volunteers who work in the kennel. About 45% of the budget is for the operations of the County Animal Shelter; the remainder of the budget is for field services (about 52%) and education (3%). Revenue generated through animal licensing and service fees off-set some of the program costs for the County and contract cities. The study committee reviewed the animal services budget in detail and is satisfied that costs are reasonable and appropriate for the services being provided. In addition, the County has been very responsible in controlling and reducing costs in order to help balance the County budget and to be sensitive to the fiscal challenges facing the cities. 2. Data collection is accurate: Services provided are allocated to each city or to the County (unincorporated areas) based on the location of service calls and/or the address of animal owners using the various services. The County utilizes specialized computer software to track services, animals and owners in order to allocate costs and monitor activity trends. Address information is accessed from the U.S. Postal Service zip code database which tends to be very accurate. Audits of calls for service in several cities indicated a high rate of accuracy of data collection and address coding. 3. A new cost allocation methodology was needed: In the past, the County allocated costs to the contract cities using a method that assigned a "service factor" to each city, which measured certain services to determine if a city was using more or fewer services in proportion to the city's population. Analysis of this method revealed that it is deficient in accurately allocating costs and revenue based on the services used by each city. In addition, this method proved to be complex and confusing to users. In order to develop a new cost allocation methodology, the committee compared the two other cost allocation methods used by various counties in California: a) Per Capita Methodology: With this method, costs and revenue are allocated to contract cities and the County based solely on the percentage of resident population in each jurisdiction. This method is very straight-forward and easy to administer. However, it assumes each city and the County are using about the same level of service proportional to their population (i.e. each resident is using about the same amount of services and l County Animal Services Contract FY 2010-13 Page 3 generating about the same amount of revenue). An analysis of actual usage of animal control services by each city revealed this was not the case. Some cities tend to use services at a much higher frequently than others, and some cities generated significantly greater revenue than others. Allocating costs and revenue based on a per-capita model would result in cities that use fewer services and/or generate more revenue having to effectively subsidize those cities that use a disproportionately higher share of services. In fact, the analysis determined that our City utilizes a relatively low proportion of services than several other cities. b) Service-based Methodology: This model allocates costs and revenues to the cities (and to the County for unincorporated areas) based on each city's actual use of services and revenue generated. Usage is measured by allocating actual field calls, animal impounds, and licenses issued (allocated by address of animal owner). This method provides a more direct and measurable relationship between the actual amount of service being provided to a city, combined with the actual revenue generated by a city through animal licenses and other fees, and the costs charged to the city for that service. Cities that have a lower rate of service and/or generate more off-setting revenue pay lower contract fees than cities with higher usage rates. After considering all three cost allocation methods, staff from each contract city and the County agreed that the service-based methodology described above is the fairest and most accurate way to allocate costs and revenue. The new three-year contract being proposed reflects this new cost allocation method. Contract Provisions and Costs The proposed contract provides for the provision of Animal Care and Control services to the City for three years, through June 30, 2013. Services include, but are not limited to: • Sheltering and medical care of stray, owner surrendered, confiscated, and quarantined household animals. • Reunification of sheltered animals with owners or pet adoptions into new homes. • Receipt and publication of lost and found animal reports. • Response to calls for service from the Police Department or residents for stray or loose animals, dangerous or vicious animals, bite and neglect/abuse investigations, potential rabies exposure investigations and quarantines, pick up of deceased animals. • Regulation of breeders and sales of domestic animals. • Animal-related nuisance investigation. • Enforcement of state and local animal-related laws. The contract fee for FY 2010-11 is $151,346. The fee will be increased annually for inflation based in the percentage increase of the Consumer Price Index (CPI) during the preceding calendar year. Should the CPI decrease, service fees will remain unchanged. In addition, the City or the County may request a service fee rate review once each year if desired. C�-3 County Animal Services Contract FY 2010-13 Page 4 The proposed contract fee was calculated using the new Service-based methodology, which resulted in a significant decrease in cost for the City. The new methodology revealed that the City of San Luis Obispo is utilizing animal services at a lower rate than some of the other cities in the County; however this usage rate was not accurately reflected in the prior cost allocation methodology. As such, cities using significantly higher rates of service were paying less than their fair share and other cities were paying more. The new cost allocation methodology corrects for this, resulting in higher rates for two cities and lower rates for the other five cities, including San Luis Obispo. For comparison, the City paid $200,256 for services in FY 2009-10 using the old cost allocation methodology. The proposed contract represents about a$49,000 decrease in costs from the previous year without reducing services for City residents. CONCURRENCES The Director of Finance and Information Technology concurs with the staff recommendation. The transition to a Service-based cost allocation model was supported by staff representatives from all the contract cities. FISCAL IMPACT The cost for FY 2010-11, the first year of the contract, is $151,346 and is included in the Police Department's 2410-11 budget. The City will be notified in May of any CPI adjustments for subsequent years and the Police Department will budget accordingly. ALTERNATIVES 1. The Council could choose not to approve a new agreement with the County for animal services. This would leave the City without the ability to provide such services and without a viable in-house or contract alternative. Many of the services are required by law..Therefore, staff does not recommend this alternative. 2. The Council could direct staff to negotiate different contract terms to increase or decrease services and associated costs. Staff has engaged in extensive discussions with County representatives regarding the services provided. Staff believes the services as proposed in the contract are necessary for our City (and many are legally mandated) and the costs are reasonable. Thus, staff does not believe service reductions would be desirable or that continued negotiation with the County would result in a reduction in contract costs. ATTACHMENT Contract for Animal Care and Control Services from July 1, 2010 through June 30, 2013. T:\Council Agenda Reports\Police CAR\2010\CAR 2010-13 Animal Services Contract 7-6-1 O.DOC ATTACHMENT CONTRACT FOR ANIMAL CARE AND CONTROL SERVICES THIS CONTRACT is made and entered into by and between the County of San Luis Obispo, a public entity in the State of California, ("County") and San Luis Obispo, an incorporated city in the State of California, ("City"). WITNESSETH: WHEREAS, County has established the Division of Animal Services to provide animal care and control functions including the enforcement of the ordinances of San Luis Obispo County Code Title 9 and of California state codes pertaining to the care, keeping, and management of animals; and WHEREAS, County, through Animal Services, maintains and operates an animal shelter and a humane education program; and WHEREAS, City is desirous of contracting with County for the provision of such services; NOW THEREFORE, in consideration of the covenants, conditions, agreements, and stipulations set forth herein, the parties hereby agree that County shall perform the services described herein for the compensation set forth herein, subject to the terms and conditions set forth herein. 1. Services. The parties agree to perform the services described in Exhibit A, attached hereto and incorporated herein by reference as if set forth in full at this point. 2. Compensation. The parties agree to the compensation described in Exhibit B, attached hereto and incorporated herein by reference as if set forth in full at this point. 3. Duration. The parties agree to the duration described in Exhibit C, attached hereto and incorporated herein by reference as if set forth in full at this point. 4. General Conditions. The parties agree to the general conditions described in Exhibit D, attached hereto and incorporated herein by reference as if set forth in full at this point. 5. Notices. Notices required in this contract shall be provided to: COUNTY CITY Eric Anderson, DVM Deborah Linden Animal Services Manager Chief of Police PO Box 3760 1042 Walnut Street San Luis Obispo, CA 93406 San Luis Obispo, CA 93401 Page Iof2 � d �5' ATTACHMENT IN WITNESS WHEREOF, the parties have executed this agreement as of the date set forth below. CITY OF SAN LUIS OBISPO An Incorporated City in the State of California By: DAVID F. ROMERO Date Mayor APPROVED AS TO FORM: HRISTINE DIETRICK Date City Attorney ATTEST: By: ELAINA CANO Date City Clerk COUNTY COUNSEL: APPROVED AS TO FORM AND LEGAL EFFECT: WARREN R. JENSEN County Counsel By: KATHY BOUCHARD Date Deputy County Counsel COUNTY OF SAN LUIS OBISPO A Public Entity in the State of California By: FRANK MECHAM Date Chairman of the Board of Supervisors Page 2 of 2 ATTACHMENT ATTEST: By: JULIE RODEWALD Date County Clerk and Ex-Officio Clerk of the Board of Supervisors Page 3 of 2 ATTACHMENT CONTRACT FOR ANIMAL CARE AND CONTROL SERVICES EXHIBIT A SCOPE OF SERVICES 1) County Obligations. The County shall perform the following duties. a) Shelter Services i) Maintain, or cause to be maintained, an animal shelter whereat stray, owner surrendered, confiscated, quarantined and custodially impounded household pets are received and provided with appropriate care, housing, and shelter services in accordance with state regulations, local ordinances, and policies governing the humane treatment of such animals. ii) Provide services allowing sheltered animals to be returned to their owners, adopted into new homes, or to be humanely euthanized. iii) Provide for the receipt and publication of lost and found animal reports. iv) Provide services for the humane euthanasia of household pets and for the disposal of their remains. b) Field Services i) Receive and respond to public calls for service related to alleged violations of local or state codes pertaining to the care, keeping, treatment, and management of animals. ii) Provide for the response to any of the following circumstances 24 hours a day, seven days a week: (1) Domestic animals posing an active and present threat to public safety (2) Domestic animals which are severely injured, ill, or in eminent risk and whose owner is unknown or unavailable. (3) Domestic or wild animal demonstrating signs of possible rabies infection. (4) Calls for assistance from law enforcement or emergency response personnel. (5) Reported animal bites where the animal remains in the area unconfined and whose owner is unknown or unavailable. (6) Loose livestock roaming on roadways or other public areas. Exhibit A, Page 1 of 3 ATTACHMENT iii) Provide for the response to any of the following during Animal Services' normal business hours: (1).Pick-up and impoundment of unlimited numbers of stray confined, domestic animals. (2) Pick-up and disposal of unlimited numbers of dead domestic animals from roadways, parks, and other public areas. (3) Pick up and transfer to shelter of owned animals for surrender or euthanasia (4) Pick up of dead owned animals for disposal iv) Provide for the necessary medical treatment and emergency care for domestic animals picked up by Animal Services personnel and for those domestic animals presented directly to veterinarians by private citizens and emergency response personnel. v) Provide for the receipt, processing and investigation of animal bite reports as well as the subsequent quarantine of animals in accordance with state codes pertaining to rabies control. vi) Receive and respond to reports of animals, domestic or wild,which are suspected to be rabid or to have been exposed to rabies infection and attempt to affect their capture. Captured animals will be processed in accordance with state codes pertaining to rabies control. vii)Receive and process all applications related to the keeping and sale of household pets; inspect and regulate permitted operations in accordance with local and state codes. viii) Provide for the recording, investigation, administrative hearings, and issuance of findings and orders related to animal nuisances, animal seizures or confiscations, and dangerous or vicious animals. Nuisances which remain unresolved following the issuance of an abatement order will be processed to court through the City Attorney's office. ix) Assist in the preparation and filing of court documents related to the civil and/or criminal prosecution of cases involving violation of municipal codes pertaining to the care, treatment, and keeping of domestic animals. x) Provide for the preparation, filing and civil or criminal prosecution of cases involving violations of California state codes pertaining to the care, treatment, and keeping of domestic animals. c) Reporting: Provide to the City quarterly service activity and financial reports reflecting field services, licensing, shelter operations, and humane education programs. Reports will detail this information for both the individual quarter and year-to-date. Exhibit A, Page 2 of 3 CF-7 ATTACHMENT 2) City Obligations. The City shall perform the following duties. a) Ordinance Conformity: Adopt, either by direct incorporation in the municipal code or by way of reference, animal control ordinances which are in conformity to and are not in substantial conflict or in variation from Chapter 9 of the San Luis Obispo County Code. b) Prosecution of Municipal Code Violations: Through the City Attorney, provide for the preparation, filing and civil or criminal prosecution of cases involving violation of municipal codes, pertaining to the care, treatment, and keeping of animals, including all such codes incorporated into the municipal code by way of reference. c) Assistance: Provide such assistance and support to Animal Services personnel as may be reasonably necessary to safely and effectively execute the operations required by this contract within the City limits. 3) Animal Care and Control Coordination Group: The County and City agree to meet and confer periodically, along with other parties contracting for like services, during the term of this Contract. Specifically, the Animal Services Manager will coordinate at least one meeting each January, May, and September to review and discuss current issues as they relate to the fiscal and practical application of this contract. Additional meetings may be held from time to time as becomes necessary. Exhibit A, Page 3 of 3 / ^1 � \I ATTACHMENT CONTRACT FOR ANIMAL CARE AND CONTROL SERVICES EXHIBIT B COMPENSATION 1) First Year Base Service Fee: The City agrees to pay to the County the amount of$151,346 for services provided under this Contract during the first year of service. 2) Annual Service Fee Adjustment: After the first year of service under this Contract and in the event that a City Service Fee Determination has not been conducted pursuant to paragraph 4 of this exhibit within the preceding twelve (12) months, then an annual adjustment for inflation will be made to the City Service Fee . Inflationary adjustments will be calculated by the county no later than May 15`of each year and will become effective on July I"of that year. The inflationary adjustment factor will be determined by calculating the percentage increase of the Consumer Price Index(CPI) during the preceding calendar year. With regard to its application to the terms of this Contract, the Consumer Price Index (CPI)refers to the Consumer Price Index for Urban Wage Earners and Clerical Workers, Los Angeles- Riverside-Orange Statistical Area, as published by the Bureau of Labor Statistics. In the event there is a decrease in the CPI during the preceding calendar year, service fees will remain unchanged. 3) Implementation of modified fees: Prior to the annual adjustment in the City service fee or in the event of a new City service fee determination, rates shall be adjusted following notification from the Health Agency Director to City. No further action by either party is necessary to implement said rates. 4) City Service Fee Determination: There shall be regular, periodic reviews of service fee assessed to the City at the following times or under the following circumstances: a) Service Fee Determination for Subsequent Contracts. A service fee determination will be completed by County 60 days prior to the termination of the contract for the purpose of setting service fees for the subsequent contract term. b) Annual Review at Option of County or Other Contracting Parties. The County, City, or any other party contracting with the County for like services during the term of this contract shall have the right to require a service fee determination be performed on the upcoming fiscal year's service fees by serving a written request for a rate review on the other contracting parties prior to May ls`of the preceding fiscalear. The rate determination will be completed by the County prior to June 30 and new City service fees shall go into effect beginning July Is` of the following fiscal year. Exhibit B, Page 1 of 2 ATTACHMENT 5) City Fee Determination Methodology: The County shall use a service based methodology for determining city service fees. The service based methodology shall be based on four key facets of Animal Services' operations: • Field Service • Licensing • Shelter Operations • Education Services a) Determination of Cost of Service—The cost of providing services to the City will be calculated by determining the average percentage of service allocated to the City over the preceding three years for each of the four facets of operations and multiplying this percentage against Animal Services operational cost for each facet. Combined, this then represents the City's total service cost in proportion to the County and all other contracting parties. b) Credit for Fees—The average annual revenue generated from fees or fines assessed directly to residents of the City by Animal Services over the preceding three years will be applied against the City's total service cost. c) Determination of Service Fee—The fee assessed to the City for provision of services outlined in this contract shall be determined by subtracting the average revenue as determined by item 6b of this exhibit from the average cost of service as determined by item 6a of this exhibit. 6) Billing—County shall bill City for contracted services in quarterly increments. City shall remit payment to the County within thirty(30) days of receipt of billing. Exhibit B, Page 2 of 2 I 1 ATTACHMENT CONTRACT FOR ANIMAL CARE AND CONTROL SERVICES EXHIBIT C DURATION 1) Effective Date: This contract shall be effective July 1, 2010 or fifteen (15) days following of the date of the signature of the County, whichever is later. The County shall be the last to sign this contract. 2) Duration: The term of this Contract shall expire June 30, 2013 unless terminated sooner as provided in Exhibit D. Exhibit C, page Page 1 of 1 F-l3 ATTACHMENT CONTRACT FOR ANIMAL CARE AND CONTROL SERVICES EXHIBIT D GENERAL CONDITIONS 1) Termination: Either party may terminate this contract at any time by giving the other party thirty (30) days written notice of termination. Termination for convenience shall have no effect upon the rights and obligations of the parties arising out of any services provided occurring prior to the effective date of such termination. County shall be paid for all work satisfactorily completed prior to the effective date of termination. In the event that the contract is terminated prior to the conclusion of a quarterly billing cycle, the City shall remit to the County a prorated amount based upon the number of days of service relative to the total number of days in the billing cycle. 2) Indemnification: Nothing in the provisions of this Contract is intended to create duties or obligations to, or rights in third parties not party to this contract, or affect the legal liability of either party to contract, by imposing any standard of care respecting the regulation and enforcement of laws regarding animals different from the standard of care imposed by law. It is understood and agreed that neither City, nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the County under or in connection with any work, authority or jurisdiction delegated to the County under this Contract. It is also understood and agreed that pursuant to Government Code 895.4, County shall defend, indemnify and save harmless the City, all officers, and employees from all claims, suits or actions of every name, kind, and description brought forth or on account of injuries or death of any person or damage to property resulting from anything done or omitted to be done by the County under this Contract except as otherwise provided by Statute. It is understood and agreed that neither County nor any officer or employee thereof, is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the City under or in connection with any work, authority or jurisdiction delegated to the City under this Contract. It is also understood and agreed that pursuant to Government Code Section 895.4, the City shall defend, indemnify and save harmless the County, all officers and employees from all claims, suits or actions of every name, kind and description brought fourth on account of injuries or death of any person or damage to property resulting from anything done or omitted to be done by City under connection with any work, authority or jurisdiction delegated to the City under this Agreement except as otherwise provided by Statute. 3) Notices: Any notice, payment, statement, or demand required or permitted to be given hereunder by either party to the other shall be effected by personal delivery in writing or by mail, postage prepaid. Mailed notices shall be addressed to the parties at the addresses Exhibit D, Page 1 of 3 ATTACHMENT appearing below, but each party may change its address by written notice in accordance with this section. Mailed notices shall be deemed communicated as of three days after mailing. Notices for County shall be addressed to: Eric Anderson Animal Services Manager PO Box 3760 San Luis Obispo, California 93406 Notices for Contractor shall be addressed to: Deborah Linden Chief of Police 1042 Walnut Street San Luis Obispo, California 93401 4) Status of the Parties' Officers/Employees/Agents: Neither party's officers, employees, agents, partners, other contractors or subcontractors shall be deemed to be employees of the other party at any time. Nothing in this contract shall be construed as creating a civil service employer- employee relationship or a joint venture relationship. No officer, employee, agent, partner, other contractor or subcontractor of the other party shall be eligible for membership in or any benefits from any plan for hospital, surgical, or medical insurance, or for membership in any retirement program,paid vacation, paid sick leave, other leave, with or without pay, collective bargaining rights, grievance procedures, appeals to the Civil Service Commission or any other benefits which inures to or accrues to an employee of the other party. The only performance and rights due the other party are those specifically stated in this contract. 5) Governing Law and Venue: This Contract shall be governed by and construed in accordance with the laws of the State of California. Additionally, this contract has been formed and shall be performed in San Luis Obispo County;the venue for any legal action on the contract shall be in San Luis Obispo County. 6) Entire Agreement: This Contract embodies the complete agreement of the parties hereto, superseding all oral or written previous and contemporary agreements between the parties relating to matters herein; and except as otherwise provided herein, cannot be modified without the prior written agreement of the parties. 7) Severability: In case any one or more of the provisions contained in this Contract shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof and this Contract shall be considered as if such invalid, illegal, or unenforceable provision had never been contained in this Contract. 8) Successors and Assigns: This Contract shall be binding upon and insure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and, except as otherwise provided in this Contract, their assigns. Exhibit D, Page 2 of 3 (5 ATTACHMENT 9) Ca tions: The captions to the various clauses of this Contract are for information purposes only and shall not alter the substance of the terms and conditions of this Contract. 10)Authorization: Each of the parties represents and warrants to the other that this Contract has been duly authorized by all necessary corporate or governmental action on the part of the representing party and that this Contract is fully binding on such party. Exhibit D, Page 3 of 3 a / council memoRAnoum July 1, 2010 RECEIVED TO: City Council JUL 01 2010 FROM: Katie Lichtig, City Manage,10- SLO CITY CLERK Deborah Linden, Chief of Police SUBJECT: Correction to Animal Care and Control Services FY 2010-11 Contract Amount July 6, 2010 City Council Meeting Item No. C8 On June 30, 2010, staff was notified by San Luis Obispo County Animal Services Manager Eric Anderson that County staff had identified an error in the FY 2010-11 contract costs for each of the cities that contract with the County for animal services. The County inadvertently did not credit the cities with a portion of anticipated savings that will be realized in FY 2010-11 due to County budget reductions. The error resulted in a decrease in contract costs for our City for FY 2010-2011 from $151,346 as reflected in the agenda report to $146,664, a reduction of $4,682. A corrected contract has been submitted to the City Clerk. 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