City of Stockton. Legislation Text

Transcription

1 City of Stockton Legislation Text File #: , Version: 1 STOCKTON ANIMAL SHELTER OPERATIONS RECOMMENDATION None. Information only. Summary Great strides to improve humane care and outcomes for animals at the Stockton Animal Shelter have been made in the last five years as a result of public concern, increased staffing, budgetary resources, and a partnership with San Francisco Society for Prevention of Cruelty to Animals (SF SPCA). The current contract with SF SPCA expires at the end of June 2018, and because it has made clear its intention not to continue the partnership, the City will need to determine how best to proceed without its expertise, resources and assistance. It is imperative that direction and resources be provided during the upcoming fiscal year to allow for a transition plan to be in place once the SF SPCA contract expires. DISCUSSION Background Historically, the City of Stockton has addressed animal welfare and sheltering for animals within City limits through the Stockton Animal Services division of the Police Department housed at the Stockton Animal Shelter (Shelter). In addition, the City has sheltered animals from outside City limits through a Memorandum of Understanding (MOU) with San Joaquin County for the past three decades. In 2012, the Shelter experienced lower-than-desired live release rates (LRR) and levels of care for the sheltered animals. As a result, the Council increased funding while the Shelter revamped its operations and partnered with the SF SPCA to improve care and outcomes for Stockton s animals. In less than three years the LRR went from 32% of animals entering the Shelter leaving alive, to 82%. This LRR is well above the state average of about 50%, and it remains high today. Shelter statistics reflect the largest improvement in Shelter history and translate into thousands of additional animal lives saved annually. The increase in the LRR is due to a variety of factors, including changes to Shelter protocols, additional allocated budget resources, increased staffing, expanded rescue partners, and increased public support. The partnership between the Shelter and the SF SPCA began as a consultative role and has evolved into a mutual partnership benefiting the City, San Joaquin County, and the community we serve. The City did not pay for any services from the SF SPCA in FY or FY In FY , the City contributed $60,000 to offset some of SF SPCA s operating costs. In addition to City of Stockton Page 1 of 6

2 increased costs for staffing, food, medicine, etc. the City contributed to SF SPCA $160,000 in FY , $500,000 in FY , and $750,000 is proposed in the FY budget which is intended to bring the contract to an approximate cost neutral position for services provided. The contract with SF SPCA expires at the end of FY and SF SPCA has indicated it is not interested in renewing. The City is legally obligated to take possession of stray or abandoned animals and to provide for their care and treatment for specified periods of time. These obligations are codified in the California Penal Code, Health and Safety Code, Food and Agricultural Code, Stockton s Municipal Code, and in Stockton s 2015 lawsuit settlement with the Animal Legal Defense Fund (ALDF). APPLICABLE LAWS California Penal Code 597.1(a)(1): Any peace officer, humane society officer, or animal control officer shall take possession of the stray or abandoned animal and shall provide care and treatment for the animal until the animal is deemed to be in suitable condition to be returned to the owner (c): Any peace officer, humane society officer, or animal control officer shall convey all injured cats and dogs found without their owners in a public place directly to a veterinarian known by the officer to be a veterinarian who ordinarily treats dogs and cats for a determination of whether the animal shall be immediately and humanely destroyed or shall be hospitalized under proper care and given emergency treatment. 599d(a): It is the policy of the state that no adoptable animal should be euthanized if it can be adopted into a suitable home. 599d(b): It is the policy of the state that no treatable animal should be euthanized. California Health and Safety Code (e): The governing body of each city, city and county, or county shall maintain or provide for the maintenance of a pound system and a rabies control program. California Food and Agricultural Code 31105: The board of supervisors shall provide for both of the following: o The taking up and impounding of all dogs which are found running at large. o The killing in some humane manner or other disposition of any dog which is impounded : The required holding period for a stray dog impounded shall be six business days, not including the day of impoundment : The required holding period for a stray cat impounded shall be six business days, not including the day of impoundment. City of Stockton Page 2 of 6

3 Stockton Municipal Code : Impounding Animals o The Animal Services Center may take into custody and impound any animal that is found at large or otherwise contrary to section if the Animal Services Center reasonably believes that such impoundment is necessary to protect: (1) the public health, safety, and welfare; (2) public or private property; (3) an animal that is sick or injured for which care is necessary; or (4) from imminent injury or danger an animal that has strayed onto a public right-of-way or other public property : When animals may be adopted, transferred or euthanized o A. the Animal Services Center shall not adopt or transfer out or euthanize a dog or cat until the State mandated holding period o E. The holding period provided in this section shall be considered a minimum holding period. To permit the public as much time as possible to retrieve or adopt animals, the Animal Services Center shall extend the holding period for individual animals to the extent that kennel space is available and the overall health and safety of the animals in the Shelter are not affected negatively. Present Situation Since 2012, City spending on the Shelter has escalated by 112% (or from $1.4 million to $3.0 million), using the same general fund dollars for which most city services compete. Even though FY approaches an approximate cost neutral arrangement with SF SPCA, replacing its staff with city employees would represent a substantial additional and ongoing cost. These future financial requirements of the current staffing model exceed the level of anticipated ongoing funding that is available. With approximately 13 months remaining in the current configuration, this is the optimal time to begin considering other options. OPTIONS 1. Take over all Shelter operation costs and positions SF SPCA is currently providing, and operate the Shelter without assistance. 2. Issue a request for proposal (RFP) to outsource the Shelter operations, in whole or in part, while Animal Control would remain with the City. 3. Negotiate an extension of the contract with SF SPCA, if possible. 4. Reduce the live release rate and level of service that the community has grown accustomed to fit within the existing budget resources. City-Run Shelter If the City were to handle all aspects of the Shelter s operation, and provide the same level of service currently provided, we would have to maintain all services currently provided by City employees and take over all services currently provided by SF SPCA. That would require establishing and filling six City of Stockton Page 3 of 6

4 new City employee classifications and adding a total of 17 positions: Supervising Veterinarian (1) Veterinarian (2) Supervising Registered Veterinary Technician (1) Registered Veterinary Technician (6) Veterinary Assistant (3) Animal Services Coordinator (3) Animal Services Supervisor - classification exists, adding one (1) position SF SPCA estimates its cost for providing the above positions to be approximately $750,000 per year. It is estimated, with salary and benefits, the same positions as City employees would cost approximately $1,646,548 per year, based on salary comparisons of nearby municipal shelters and current benefit rates for City employees. Current FY expenditures for the Animal Shelter are estimated to be just over $3.0 million, approximately $440,000 over the FY original budget. In FY the SF SPCA contract price increases by $250,000 to $750,000 and, in order to maintain the current level of services provided at the Shelter, further funding is requested in Other Services and Materials & Supplies, in an estimated amount of $565,000. In addition, some level of transition will be required to smoothly transfer care from SF SPCA to City staff. Key positions would be needed up to three months in advance at a cost of $546,664. The FY Animal Shelter budget of $2.6 million and these additional factors result in a projected FY Budget need of $3.9 million. Thereafter, the annual operating cost of the Stockton Animal Shelter is projected to increase incrementally each year for labor and supply increases, which will be offset, in part, by the elimination of the SF SPCA expense in FY By comparison, Sacramento Animal Shelter has a similar animal intake number and LRR, but operates with 49 staff members and an annual budget of $4.6 million. Outsource Shelter Operations The main benefit of outsourcing Shelter operations, either in whole to an organization or in part to a series of independent contractors, is the possible fiscal savings of employee costs. Other potential benefits of privatization include improved operational efficiency and flexibility, the lack of special interest interference, improved Shelter fundraising (as private donors are often hesitant to subsidize the perceived obligations of government), and improved staff and community morale. However, significant obstacles to outsourcing Shelter operations also exist. First and foremost, it is not clear whether any third party is willing or has the capacity to assume Shelter operations. The SF SPCA is not interested in taking over the Shelter or even continuing the current arrangement, and the City is unaware of any other organization with the bandwidth, expertise, and interest in providing the care and services that the City currently provides. Second, there may be bargaining group issues with any privatization efforts. Although there are a number of ways to contractually and politically address the treatment of existing union employees at the Shelter (for example, it may be possible to simply absorb union-represented workers in other City of Stockton Page 4 of 6

5 departments), it is noted that organized labor would likely play at least some role in this transition. Third, even if a private party were interested in assuming shelter operations, it is unclear whether outsourcing would be economically feasible or whether it would maintain or improve the current level of animal care. Negotiate an extension of the contract with SF SPCA SF SPCA has made it clear that it does not intend to renew its contract with Stockton beyond June 30, It is unknown whether it can be persuaded to continue providing services beyond the current contract. It is also unknown whether continuing the contract would be fiscally sustainable for the City. Shelter to provide a lower level of service If additional funding is not available to continue the Shelter s current level of service, the community would have to accept a lower live release rate than it has grown accustomed. The operations of the Shelter would have to be reworked to fit within available budgetary resources. Additional Consideration: San Joaquin County Animal Services San Joaquin County Animal Services currently operates under a Memorandum of Understanding (MOU) with the City to house its animals at the Stockton Animal Shelter. Approximately 30% of animals coming in to the Shelter are brought in by County Animal Services. The existing MOU does not require the two entities to operate under the same fee schedule or animal control policies, which causes confusion and additional burden on Shelter staff to provide quality customer service. Under the terms of the MOU, the County pays for its proportionate share of operating expenses, approximately $605,000 this year. This amount has increased significantly over the last few years, as additional resources have been allocated to the Shelter and as a result of the other positive changes in operation of the Shelter as outlined above. If the City chooses to terminate the MOU with San Joaquin County, it would be necessary to: Provide one year notice Reduce Shelter population accordingly Terminating the MOU may or may not save the City any money, but it would most certainly give the City more operational control over the Shelter and the latitude to improve operational efficiencies. A reduced Shelter population in a City-run Shelter may reduce the number of needed staff positions and costs. If the City chooses to continue the partnership with San Joaquin County, renegotiation of the current MOU between the parties regarding animal sheltering will be imperative. The City could explore requesting the County to pay a higher percentage of the cost than it currently pays, in order to maintain the Shelter s current level of service. City of Stockton Page 5 of 6

6 FINANCIAL SUMMARY Animal Shelter costs are primarily funded with General Fund dollars offset by some revenue from fees and from the San Joaquin County MOU. The projected expense of the Animal Shelter and Services for FY is $3.0 million, which is approximately $440,000 over the original budget adopted. Funds were moved from other Police Department Accounts to cover the overage. The Animal Shelter budget in the Proposed FY Annual Budget released on May 15, 2017, is $2.8 million which includes a funding increase for the SF SPCA contract. Although the City is currently in a strong financial position, long-term fiscal sustainability is dependent on disciplined budgeting decisions in the near term. The City s Long-Range Financial Plan included in the Proposed FY Annual Budget shows that the budgeted level of General Fund expenditures is sustainable in the long-term, retaining a balance greater than or equal to 5% of annual expenditures over the next 30 years. In order to maintain the existing level of service and LRR, the Shelter s annual budget needs to increase by $815,000 in FY : $250,000 for the SF SPCA contract already included in the Proposed Budget and $565,000 for the same level of medical supplies used in the current year. Adding $565,000 for medical supplies on an ongoing basis to the Long-Range Financial Plan would reduce the General Fund balance to 1% of total expenses by FY It is worth noting that this projection does not include the additional staff positions provided by SF SPCA. Should Council direct staff to proceed with bringing the services provided by SF SPCA in house at the end of the contract, a three-month transition period for critical staffing positions is requested, which is estimated at $546,664. Thereafter, staffing costs are projected to escalate by 7.5% and other expenses by 5%. The projected budgetary need in FY is $4.5 million. The cost to take over the Shelter operations would result in a negative General Fund balance starting in FY A RFP to outsource some or all of the Shelter services will require approximately ten months to complete at an unknown cost to execute any contract(s) resulting from the request. Renegotiating with SF SPCA has an unknown financial impact at this time. Lowering the LRR and changing operational practices at the Shelter to fit within the resources allocated will take some time and will not be an exact science. In other words, staff cannot project with certainty how far the LRR will need to decrease in order to stay within budget. City of Stockton Page 6 of 6