Assembly Bill 1482 (Alquist) went into effect as an urgency statute on July 12, 1999. This legislation allowed cities to delay the implementation of the longer holding periods for animals required under Senate Bill 1785 (Hayden) until July 1, 2000. Adoption of this resolution requires Council approval.

Staff recommends adoption of the Resolution and its related compliance plan.

The City of Sunnyvale, along with the cities of San Jose, Santa Clara, Milpitas, Monte Sereno, Saratoga, Campbell, Cupertino, and Los Gatos have contracted with the Humane Society of Santa Clara Valley for animal control service and sheltering since 1993. Senate Bill 1785 made mandatory holding periods in excess of what is reasonable for available space at the Humane Society of Santa Clara Valley. Prior to Senate Bill 1785, the law provided that the holding period for dogs and cats impounded was 72 hours from the time of impoundment. Subsequent to Senate Bill 1785, the new mandated holding period for dogs, cats and other animals legally allowed as personal property is 6 business days, not including the day of impoundment. The holding period for owner surrender animals has also increased from no mandatory holding period to a holding period of 6 business days. Assembly Bill 1482 allows cities to delay implementation of SB 1785’s requirements until July 1, 2000, by allowing cities to adopt a compliance plan.

The Humane Society notified all agencies that it would be physically impossible to comply with Senate Bill 1785 based on space availability and the mandatory increased holding periods. Furthermore, the Humane Society gave notice that as early as June 30, 2001, they would no longer provide sheltering, code enforcement, or field operations services. Realizing this may cause hardship for the current contract cities, the Humane Society has indicated that it could continue to provide shelter services through June 30, 2002.

Since the Humane Society’s notification of intention to cease operations, staff has been involved in discussions with all affected cities to plan for alternative animal field and shelter facilities.

In order to assist the cities that were not prepared for the immediate effects of SB 1785, AB 1482 went into effect as an urgency statute on July 12, 1999. This legislation allows cities to elect to delay implementation of the longer holding periods for animals required under SB 1785 until July 1, 2000, by taking certain actions set forth in the legislation. Under AB 1482, once a public agency passes a resolution to invoke the provisions of the legislation, that city shall adopt a compliance plan on or before July 1, 2000 to meet SB 1785’s longer animal holding requirements. The compliance plan must include a schedule for implementation and identify funding sources for any facilities that may have to be built in order to comply with SB 1785’s holding requirements.

The Humane Society of Santa Clara Valley continues to provide animal shelter services to Sunnyvale under contract for fiscal year 1999/2000 and also has committed to an additional two years of shelter services through June 30, 2002. An early-termination clause has been written into the contract if alternative arrangements can be secured prior to that time (appropriate city staff are now reviewing the draft contract). This provides a transition period for Sunnyvale and other cities in Santa Clara County that rely on their shelter services to plan, fund and construct a new animal shelter facility and to hire the staff necessary to operate the shelter.

The plan of action required under AB 1482 during this fiscal year, which will position the City to meet the holding requirements of SB 1785 on or before July 1, 2000 involves the following elements:

Work with the Humane Society of Santa Clara Valley to establish policies and programs to reduce the number of strays and increase the number of animals returned to their owners, thereby providing some added capacity within their existing facility by:

Over the next several months, it is anticipated that 1) a Joint Powers Authority (JPA) will be formed and 2) a cost-sharing plan will be developed and approved among participating cities for financing and operating the animal services facility. Draft versions of the proposed JPA and cost-sharing plan (DMG-Maximus Report) are attached hereto and incorporated for reference.

Between July 1, 2000 and July 1, 2002, complete the following elements of the facility construction and operation plan:

• Acquisition of a site for a new animal services facility, if proposed site owned by the City of Santa Clara cannot be utilized;

The City of San Jose is currently moving forward with a plan to build and operate a city animal shelter that will include field operations animal services. San Jose may offer their sheltering and or field operation services on a contractual basis to Santa Clara County cities should the JPA be unable to move ahead as envisioned.

• The proposed JPA cities are discussing the possibility of acquiring the existing Humane Society facility, the director of which has expressed interest in a land swap to facilitate this action.

The General Fund is the source of funding for the City of Sunnyvale’s contract with the Humane Society of Santa Clara Valley for the current fiscal year. Funding for the construction and operation of a new regional animal services facility will be provided by all the cities in Santa Clara County who become part of the JPA. It is anticipated that this will include Sunnyvale, Santa Clara, Milpitas, Campbell, Cupertino, Los Gatos, Monte Sereno, and Saratoga. Each city will contribute its share pursuant to an approved cost-sharing plan. Ongoing operation costs will be allocated to each city per an approved cost-sharing plan as well. The City of Sunnyvale’s share of the total costs is estimated at 28.07% for both capital and ongoing operations. It is expected that the city’s General Fund will bear the expenditure burdens for both capital and operational activities.

The fiscal impact if Sunnyvale chooses to participate in the Joint Powers Authority is projected to be as follows:

Projected capital costs for a fully enclosed modern animal services facility, which would be sized to serve all the potential participating agencies, is estimated to be at a low range of $5,222,354 to a high range of $6,507,567. These costs would be apportioned between and among the participating jurisdictions based on a cost allocation formula. Sunnyvale’s capital costs, beginning in FY 2000/2001, are estimated to be at a low range of $1,466,149 to a high range of $1,826,966. These costs are exclusive of 1) financing and 2) land costs.

The DMG feasibility study assumes the facility will be built on land currently owned by the City of Santa Clara. Land lease costs associated with this property are included in the annual operating cost estimate.

Annual operating costs for the proposed facility are projected to be $1.8 to $1.9 million annually, exclusive of costs associated with servicing debt or retiring principal related to development of an animal services facility. These costs would be apportioned between and among the participating jurisdictions based on a cost allocation formula. Sunnyvale’s annual operating costs would begin in FY 2002/2003, and are estimated to be $511,897, including a $45,090 revenue estimate (See following section titled *Unknowns).

Costs of participation in the City of San Jose program is an option that has not yet been studied or discussed.

The current JPA as proposed assumes Sunnyvale’s participation will include field and shelter services. After careful consideration, however, staff feels that to maintain and/or improve current service levels, field service provision must remain under Public Safety’s direct control and not handled through the proposed JPA. This issue needs to be more fully discussed with proposed JPA participants. If and when agreement is reached on the issue, staff will request amendment to the cost-sharing plan to reflect the change. The effect would be a reduction in projected 28.07% operations portion by 25%, from $511,897 to $385,100 for shelter services. Net operating costs in FY 2002/2003 are estimated to be $212,143 and break down as follows:

One additional item that needs clarification is the possibility of the City of Milpitas pursuing Animal Control services through a contract with the City of San Jose. If this occurs, Milpitas’ share in the proposed JPA will need to be apportioned to the remaining proposed JPA cities, thus increasing each city’s respective share.

The concepts contained in this plan have been discussed with the Humane Society, as well as the cities of San Jose, Santa Clara, Milpitas, and Campbell, representing the West Valley cities of Los Gatos, Cupertino, Monte Sereno, and Saratoga. In addition, Reports to Council are available in the Library and one the city’s web page.

Staff recommends Alternative 1.

Prepared by:

Kirk Sanfilippo, Captain
Bureau of Professional Standards

Prepared by:

Pete Gonda,
Administrative Assistant
Police Services

Reviewed by:

Irwin I. Bakin, Director
Department of Public Safety

Reviewed by:

Mary Bradley, Director
Department of Finance

Approved by:

Robert S. LaSala
City Manager