If Recommendation Three is carried by a 2/3 majority, Recommendation Four will be presented.

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1 Presented To: City Council Request for Decision Animal Care and Control Implementation Update Presented: Tuesday, Jul 12, 2016 Report Date Tuesday, Jun 28, 2016 Type: Presentations Resolution Recommendation One: THAT the City of Greater Sudbury receives the report dated June 28, 2016 from the Executive Director Administrative Services/City Clerk. Recommendation Two: THAT the City of Greater Sudbury approves the reallocation of existing budget resources to support the new Council Approved Animal Control Enforcement service delivery model, and the transfer of $225,000 from purchased contract services to salaries and benefits and use those funds to add 5,481 part-time and contract hours to the approved complement for enforcement staff in the Security and By-Law section. Recommendation Three: Signed By Report Prepared By Caroline Hallsworth Executive Director, Administrative Services/City Clerk Digitally Signed Jun 28, 16 Recommended by the Department Caroline Hallsworth Executive Director, Administrative Services/City Clerk Digitally Signed Jun 28, 16 Recommended by the C.A.O. Ed Archer Chief Administrative Officer Digitally Signed Jun 28, 16 WHEREAS the costs of contracting out of pound, if the current RFP is awarded, will have increased 244% since 2001 and whereas the costs of continuing to contract out these services, if awarded, would require an operating budget increase of $413,229 annually, beyond currently approved budgets for animal control services, that Council reconsiders Resolution CC which states that the City of Greater Sudbury continues to contract out Pound Services. If Recommendation Three is carried by a 2/3 majority, Recommendation Four will be presented. Recommendation Four: THAT RFP CPS be cancelled; AND THAT staff be directed to implement a CGS operated Pound, in a municipally owned building which is to be renovated to accommodate a pound; AND THAT the By-Law Services budget be restructured through reallocation of funds currently assigned to purchased contract services to cover the costs of this service, including salaries and benefits for two full-time positions, materials and energy costs; AND THAT the capital costs for establishment of a pound be funded from the Tax Rate Stabilization Reserve, all as outlined in the report from the Executive Director, Administrative Services/City Clerk.

2 Finance Implications If Council approves the recommendation to implement a CGS operated pound, the total cost for animal control will be $675,000. Of this amount, $280,000 will be allocated to the previously approved CGS enforcement with the remaining $395,000 for the CGS pound. The cost will be funded from the existing animal control contract budget of $691,771, as well as additional revenue of $50,000 from pound services. If approved, capital renovations estimated in the amount of $400,000 - $600,000, as well as new equipment in the amount of $100,000 will be funded from Tax Rate Stabilization Reserve leaving an uncommitted balance of $3,717, ,517,055.92

3 Executive Summary: This report updates Council and the Community on the implementation of the new service delivery model for Animal Care and Control, including outlining the new staffing model, advising of the outcomes of the RFP process, providing a new service delivery option for pound services and summarizing the budget adjustments within resources already allocated to animal care and enforcement under both scenarios. Background: In the fall of 2014, after two rounds of Requests for Proposals, Council was presented with a report to award a five year contract for Animal Control Services. Council at that time, concerned by a significant price increase associated with the contract, voted to shorten the next contract for provision of animal control services, from five years to two so as to expire at the end of October 2016 and directed an external examination of the City of Greater Sudbury s needs, requirements and desires, balanced with best practices, for the care and control of animals. In January and February of 2016, Council received the report from Matrix Consulting and made three decisions in regards to the model of service for Animal Care and Control: CGS conducts animal services by-law enforcement through the use of CGS employees beginning in the fall of 2016 when the current contract expires CGS continues to contract out for pound services and issues an RFP for that service, designed to increase competition and the potential for a larger number of qualified bidders CGS formally adopted a Low Kill Service philosophy, based on eleven core tenets, outlined in the Matrix report. Since those decisions were made, staff have been working to action the directions established by Council as summarized below. Staffing Model: By-Law Enforcement of Animal Control One of the new opportunities for the City of Greater Sudbury as a result of the service delivery model selected by Council is the expansion of current hours of service for By- Law Enforcement, from the current Monday Friday 8:30 4:30 schedule, to include evening and weekend coverage. This change is made possible by blending the responsibilities for both general by-law enforcement and animal control enforcement for all officers. The current Job Description for Senior By-Law Officers contains inclusive language for the enforcement of animal control.

4 The Matrix report recommended that to support the delivery of animal control enforcement with City of Greater Sudbury staff, an additional three full time equivalent employees would be required in addition to the existing complement of officers already working in the department. Based on the addition of 5,481 part time hours (2.9 FTE) for enforcement, a new service schedule has been developed which will ensure the availability of By-Law Enforcement officers between 8:30 a.m. and 10:00 p.m. on weekdays and for twelve hours each day on weekends. This will be augmented with some holiday service and one officer on call during the overnight period in regards to animal control emergencies. During the winter control overnight enforcement period, the duties of parking enforcement and animal control emergencies can be combined for further efficiency. In the new service delivery model, By-Law Enforcement Officers will receive additional training so as to enable them to also enforce the Animal Care and Control By-Law. Training costs will be higher in the first year of the new service as all full-time and parttime officers require animal enforcement training, which training will include ride alongs with municipal by-law enforcement officers in other municipalities where animal control enforcement is included in the duties of municipal by-law staff. After the first year, training costs are expected to stabilize. Vehicles and Equipment By-Law Services currently makes use of five vehicles, three of which are small cars, one of which is an SUV and the other of which is a pick-up truck. Staff has reviewed the vehicle requirements for by-law enforcement with a capacity to transport animals in appropriate cages with Fleet Services. There is no requirement to add to the number of vehicles assigned to By-Law Services. The three small cars will be exchanged for three station wagons which can accommodate the animal control equipment. The cost of equipping the five By-Law Enforcement vehicles with animal control equipment is approximately $1,500 per vehicle for a total one-time cost of $7,500. Request for Proposal CPS16-110: Animal Control Pound Services A request for proposal was issued in May 2016 for pound and shelter services for domestic cats and dogs brought in by CGS By-Law department or surrendered by the general public. The RFP was structured so that service providers would receive payment from the City of Greater Sudbury for each animal in their care during a provincially legislated three day redemption period, not including the day the animal was admitted, and statutory holidays. After three days, dogs and cats may be fostered or adopted out by the service provider who would continue to retain all adoption fees, providing further incentive to reduce the length of stay of each animal in the shelter. An option was

5 provided for proponents to bid on service to the City as a whole, or for smaller zones to allow for smaller organizations to bid. Based on the statistics from the current service provider, the number of animals in impound in any given year varies from a low of 1,207 to a high of 1,591 with a six year average of 1,453 cats and dogs either being held in redemption period or surrendered to the pound. For the purposes of costing the RFP proposals and budgeting for the future, staff has used 1,500 animals per year. Two proponents responded to the RFP which closed on June 17, Proponent Pet Save Inc. (Northern Ont) o/a Pet Save Animal Services Wenrick Kennel Inc. o/a the Rainbow District Animal Control & Shelter Services Price per dog per Price per cat per three day three day redemption period redemption period (all three zones) (all three zones) $170 $170 $550 $550 Proposals were scored using the following criteria: Demonstrated experience working with and providing the care for animals for a period not less than three (3) years. 25 Cost Proposal 40 Service delivery which will meet the needs of the community and CGS, including but not limited to: Facility, Schedule, Plan for Adoption/Foster Care, Service to public. References provided for up to three (3) similar sized projects, at least one of which is within Northern Ontario One proponent met all the requirements for experience, service delivery and references, however with an annual value of $825,000 is double the budgeted range for this contract and more than triples the value of the other bid. These costs do not include the cost of enforcement. When the costs of enforcement are added, a net annual operating budget increase of $413,229 would be required if the contract is awarded to this proponent.

6 The other proponent had a price of $255,000 and as the lowest bidder, scored full marks on pricing. However the RFP submission was very brief and did not provide evidence of meeting all of the RFP requirements and did not achieve a 50% score on the combined elements related to experience, service delivery and references. Staff cannot recommend that either of the proposals be awarded and therefore proposes that RFP CPS be cancelled. If Council wishes to award the RFP as offered, the higher scoring of the two proposals is the bid having an estimated annual dollar value of $825,000 which will necessitate an annual operating budget increase in support of animal control. History of Pricing: Animal Control Contract The City of Greater Sudbury has had contracts in place since 2001 in regards to Animal Control. Those contracts have been renewed in 2004, 2009, 2014 and For the years , the dollar value shown in the graph below is the actual final amount spent on the contact as reflected in CGS year end budgets, for 2016 it is the budgeted dollar amount based on the contract terms and in 2017 it is the estimated value of the highest scoring bid, should the RFP be awarded (and for 2017 excludes the cost of enforcement). 900, , , , , , , , , Over the sixteen year history of this contract, costs have escalated at a rate significantly higher than inflation, as shown in the chart below. In fact, between 2001 and 2015, the dollar value of the contract has increased 154% and between 2001 and 2017, if awarded as bid, the dollar value will have increased 244% before enforcement costs are added. According to the Bank of Canada Inflation Calculator, a product that cost $239, in 2001 if increased only for inflation, should cost $313, in The cycle of ever escalating contract service costs cannot continue indefinitely and as prices increase at a rate far outstripping inflation, alternative service delivery models need to be re-examined.

7 Alternative Services Delivery Model for Pound Services The Matrix report recommended that the City continue to contract out pound services, assuming that the services could be retained for an amount of between $200,000 and $450,000 annually. With the highest scoring bid well outside that range, staff suggests that the contracting out of pound services is no longer viable. There are a few municipalities that own and operate their own pounds or animal shelters, including Brampton, whose business model was used to develop a costing option for a similar service in Greater Sudbury. A municipally owned or operated pound would employ two junior by-law enforcement officers, supplemented by part-time hours. The former City of Sudbury ran a pound for a number of years. CGS has three employees currently working the By-Law section, who have prior pound or animal kennel experience and who have expressed a keen interest in filling these new positions, should the alternate model be adopted. Operating costs associated with a pound include everything from utilities for the building, which will be high due to the particular requirements of this type of use, feed for the animals, pet adoption software, and the addition of one vehicle to the by-law fleet to support a standalone facility and the requirements for movement of animals between the pound and partner organizations. Physical cleaning of the facility and veterinarian services may be contracted out. The City is already working to develop new relationships with the Animal Care community and partnerships with foster and adoption groups will be critical to the success of a municipally operated pound. Staff across several departments have worked together to identify municipally owned buildings suitable for housing a pound. Criteria include size, space, condition and a location with some geographic distance from residential homes and the appropriate zoning. Sites primarily in the Garson area are being reviewed in detail as to what would be required to meet the OMAFRA standard for Pounds. Additional information will be provided to Council in regards to the preferred building in advance of the meeting. It is anticipated that capital costs for the building renovations will be in the $400,000 - $600,000 range and capital equipment costs may be in the $100,000 range. It is recommended that should this option be adopted, that the capital funds be drawn from reserves, to be paid back from the unspent balance of the current annual operating budget for animal control contracts. Costing the Options For ease and simplicity, the budget numbers noted below are specific to the Animal Care and Control portion of the Security and By-Law portfolio.

8 Description 2016 Approved Budget EXPENDITURES Matrix Estimates (Matrix Report, page 37: PPT Slide 10) Proposed Budget Contract Out Pound (Higher scoring proposal) Proposed Budget CGS Operated Pound Salaries and Benefits Additional Enforcement Staff Materials and Operating Expenses Purchased Contract Services Service Enhancement Pilot Trap, Neuter Release program Service Enhancement Pilot Expanded Spay/Neuter program TOTAL EXPENDITURES N/A $243,750 $225,000 $225,000 (Enforcement) $185,000 (Pound staff) N/A $41,000 (Extra Vehicles, Training, Clothing, Software) $622,771+ $69,000 RDAC revenue share $200,000 - $450,000 $20,000 $120,000 (Building costs, feed, software, 1 vehicle, equipment and supplies etc) $825,000 $110,000 (Vet and Cleaning Services) N/A $15,000 $15,000 $15,000 N/A $20,000 $20,000 $20,000 $691,771 $519,750 - $769,750 1,105,000 $675,000 REVENUES Less revenue increases in Year One 1 YEAR TOTAL OPERATING COSTS 5 YEAR TOTAL OPERATING COSTS N/A $150,000 N/A $50,000 $691,771 $369,750 - $619,750 $3,458,885 $1,848,750 $3,098,750 $1,105,000 $625,000 $5,525,000 $3,125,000

9 If Council decides to direct staff to award the contract to the highest scoring proponent, an annual operating budget increase of $413,229 will be required. If Council decides to operate a pound in a CGS building using CGS staff, the costs specific to that operation are $395,000, which added to the cost of in-house enforcement brings the total animal care and control operating costs to $675,000. As the new service is implemented, with a focus on licensing and with the City retaining fees associated with adoption and redemption directly from the Pound, it is anticipated that revenue increases of $50,000 will partially offset the costs and over time may be used in future years to either reduce the net operating budget or fund other programs. Next Steps Council is asked to make a decision as to the model of service delivery for Pound Services on July 12 th as the current service provider contract expires on October 31, 2016 and there is a significant body of work to complete to be ready for that date. In addition to this topic, there is a report on the July 12 th Agenda regarding the principles for a new Animal Care and Control By-Law, which By-Law is planned to come into effect for November 1, Once the new service model is in place, staff will come back to Council with proposals for pilot programs in support of TNR (Trap/Neuter/Release) to address Feral cat colonies and an Expanded Spay/Neuter Program.