June 13, 2006
SUBJECT: Amendment to the Animal Shelter Services Agreement with the Humane Society Silicon Valley
REPORT IN BRIEF
The purpose of this report is to secure City Council approval to extend the short-term agreement with the Humane Society Silicon Valley (HSSV) for animal sheltering services for a period of one year. The original three-year Animal Services Agreement and First Amendment extending the contract for one year between the HSSV and the City of Sunnyvale (Attachment A), along with the proposed “Second Amendment” (Attachment B) for one additional fiscal year fulfills this objective. The Agreement will start on July 1, 2006. The one-year term of this “Second Amendment” will bridge the time between the end of the City’s original three year agreement with the HSSV and the beginning of the City’s long-term animal shelter services agreement with Palo Alto Animal Services.
Authority to pursue the original contract was granted by the Sunnyvale City Council on March 18, 2003. The direction from Council is from agenda item number 03-096, which directed the City Manager to “authorize staff to complete negotiations and enter into a long-term contract with the City of Palo Alto and a short-term contract with the Humane Society.” The purpose of this proposed “Second Amendment” is to ensure continuation of animal sheltering services with HSSV until Palo Alto can complete construction on their new facility.
Staff recommends that the City Council authorize the City Manager to extend the short-term Animal Shelter Agreement with the HSSV via the proposed “Second Amendment.”
BACKGROUND
On July 20, 2000, the City entered into a Joint Powers Agreement with six other cities to form the Silicon Valley Animal Control Authority (SVACA). The goal of SVACA was to provide animal field, shelter and related services to the participating cities. SVACA completed its first full year of field operations during FY 2001-2002, however, Sunnyvale opted to provide field services and use only shelter and related services offered by SVACA. During the first year of operations, some concerns arose as to Sunnyvale’s continued participation in SVACA.
A major concern developed due to a shelter plan that was larger and more expensive than originally approved by the participating cities. This change in plan required participants to appropriate additional capital funding for the expanded facility. Challenges regarding public transportation easements and mitigating contamination at the proposed shelter site were also encountered. This led to uncertainties regarding the feasibility of using the site and, if usable, the final shelter configuration and cost.
In addition to concerns regarding the shelter and its location, Sunnyvale’s animal sheltering costs increased dramatically after joining SVACA. Since SVACA did not have a facility, shelter services were provided to the City by the Humane Society through SVACA. Under this arrangement, SVACA’s operating costs doubled between FY 2000-2001 ($164,630) and FY 2001-2002 ($380,740), and were projected to increase further as the project became fully staffed to $561,630.
A third concern emerged as a result of a cost comparison study. Following the completion of SVACA’s second year of operation the participating cities had an actual cost history, which allowed them to compare SVACA to other similar Bay Area shelters. The City of Cupertino initiated this study. The study concluded that SVACA’s costs per animal were inordinately high. The projected costs per animal once the SVACA project was fully staffed and operational was $263 per animal.
Consequent to discussions regarding the comparison study and escalating costs, the City Council made a decision on March 18, 2003, authorizing staff to pursue alternative shelter contracts. This decision resulted in the City’s withdrawal from SVACA. Council authorized the City Manager to secure a short-term animal sheltering services agreement with HSSV, and a long-term contract with Palo Alto Animal Services (PAAS).
The City entered into a long term contract with PAAS on January 1, 2004 with the understanding that they would begin to provide services to the City as soon as they had completed construction on a necessary expansion. Without the expansion there was not the capacity to receive animals from Sunnyvale. Until PAAS was ready to receive animals from Sunnyvale, a short term solution was necessary. Sunnyvale was able to secure a short-term contract with HSSV for sheltering services and has been able to extend that contract, as PAAS is not ready to accept responsibility for Sunnyvale animals due to a lack of shelter space.
EXISTING POLICY
Goal 4.1B
Provide community oriented services that are responsive to citizen’s needs in traditionally non-criminal areas.
DISCUSSION
Understanding that the City is in a long term contract with the City of Palo Alto to provide required animal sheltering including veterinary, vaccination and disposition of found and surrendered animals, staff had to enter into a short-term contract with the HSSV for shelter services until PAAS constructs a shelter large enough to accommodate Sunnyvale’s need.
The HSSV has agreed to continue to provide shelter services to Sunnyvale via an amendment to our current agreement. This is being done with funds that are budgeted in Program 483 for Animal Services, originally intended to be paid
to PAAS. Until DPS is able to utilize the services of PAAS, the money will be paid to HSSV.
The Humane Society will provide the following services, including shelter facilities, supplies, animal attendants, supervisors and administrative personnel, and any other supplies and personnel reasonably required to perform the following services.
· Shelter of abandoned, impounded, lost or stray domestic animals brought to the shelter by Sunnyvale residents or personnel.
· Quarantine of vicious animals.
· Testing of suspected rabid animals.
· Provision for surrender and reclaim of abandoned, lost or stray domestic animals during established business hours.
· Euthanization and disposal of animals that are abandoned, lost, impounded, or stray domestic animals unclaimed by their owners and fail to be adopted.
In addition, the Humane Society will provide medical services to Sunnyvale animals, including office facilities, supplies, and professional and trained personnel, employed or under contract, necessary to perform the following services.
· Veterinarian services twenty-four hours per day to treat and provide veterinarian care to stray, injured, or sick dogs, cats, and other impounded animals.
· Monitor impounded quarantined biter animals.
· Vaccination services and, free of charge to the public, rabies control information.
Detailed information concerning the following items appears in the original animal shelter agreement presented in Attachment A; operating schedules, dead animal services, records (maintenance, inspection, monthly and annual reports), program revenue (prior fees, records, statement), animal licensing, prior payments (schedule and amount), inspection of financial records, term/termination of agreement, indemnification, insurance, independent contractor agreement, assign ability, notices, nondiscrimination, ownership of materials, venue, and general provisions.
Within Attachment B, the proposed “Second Amendment” to the Agreement, all the original items remain in effect with amendments of a $12 increase per animal payment provision to cover an increase in HSSV overhead costs, and a new termination agreement. The cost difference represents a 10% increase over the prior agreement which covers all administrative costs as well as costs associated with medical and dead animal services. The proposed termination agreement allows Humane Society to terminate this agreement upon at least three (3) months prior written notice, but reduces the stipulation for the City to terminate upon at least two (2) months prior written notice. Should the expansion not be completed during this contract period, the HSSV is amenable to a shorter term or month to month agreement to ensure services to Sunnyvale until the construction on the expansion project in Palo Alto is completed.
FISCAL IMPACT
The fiscal year 2006/2007 budgeted amount for animal shelter services through the Humane Society is $342,950. The billing arrangement with the Humane Society will be based on the number of live animals impounded. The “live animal” cost incorporates all administrative costs and costs associated with medical and dead animal services. The cost for FY 06/07 will be $163 per animal. The total number of animals brought to HSSV by either Sunnyvale Animal Control or Sunnyvale residents in FY 2004/2005 was 1,407. Based on the FY 2004/2005 numbers, the projected expenditures for FY 2006/2007 will be approximately $230,000. Staff will make this adjustment for the FY 2006/2007 adopted budget.
Conclusion
The City of Sunnyvale has the need to shelter animals that are lost, abandoned, or surrendered by their owner. HSSV currently provides and is agreeable to continue providing those services until PAAS has completed a shelter expansion and is able to provide sheltering services to Sunnyvale. HSSV has no intent in providing sheltering services over the long term.
The short term, proposed “Second Amendment” to the Animal Services Agreement between HSSV and the City of Sunnyvale provides the best option for Sunnyvale to shelter animals until such time as PAAS can accommodate Sunnyvale animals.
PUBLIC CONTACT
Public contact was made through posting of the Council agenda on the city's official notice bulletin board, posting of the agenda and report on the city's web page, publication of the Council agenda in the San Jose Mercury News, and the availability of the report in the Library and the City Clerk's Office.
ALTERNATIVES
1. Approve a one year extension to the Animal Services Agreement with HSSV to provide animal sheltering services.
2. Do not approve the extension of the agreement and direct staff to research other alternatives.
RECOMMENDATION
Staff recommends Alternative #1.
Reviewed by:
Don Johnson, Director, Department of Public Safety
Prepared by: Dayton Pang, A/Deputy Chief
Reviewed by:
Mary Bradley, Director, Department of Finance
Reviewed by:
David A. Kahn
City Attorney
Approved by:
Amy Chan
City Manager
Attachments
A. The original 3-year agreement and first amendment between the Humane Society Silicon Valley and the City of Sunnyvale
B. The second amendment for one additional fiscal year