Our Focus: Your Future
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1 Town of Fort Erie Legal & Legislative Services Our Focus: Your Future Prepared for Council-in-Committee Report No. CS Agenda Date May 22, 2007 File No Subject RENEWAL OF SPCA AGREEMENT Recommendations THAT A by-law be submitted to Council to authorize the entry into a new agreement with the Fort Erie SPCA for a period of three (3 years according to the terms set out herein. Relation to Council s Corporate Strategic Plan Priority: Financial stewardship. Goal: The Council will ensure the development and focus on long-term financial planning, ensure optimum use of resources and further develop sound financial strategies to meet the needs of the community. Initiative: C1.2 continue to initiate alternative service delivery strategies (i.e. public/private partnerships, volunteer community groups, shared services. List of Stakeholders 1. Dog Owners 2. Fort Erie SPCA 3. Town of Fort Erie Prepared by: Submitted by: Approved by: Original Signed Carolyn J. Kett, A.M.C.T. Town Clerk Original Signed Heather A. Salter, B.E.S., LL.B Town Solicitor/Director of Legal and Legislative Services Original Signed Harry Schlange, MBA Chief Administrative Officer
2 Department Page 2 of 5 Report No. CS Purpose of Report The Animal Control Services Agreement between the Town of Fort Erie and the Fort Erie SPCA (SPCA is due to expire on May 31, The Clerk has met with representatives of the SPCA to review services, expenses and revenues relative to the renewal of the Animal Control Services Agreement as well as opportunities for greater efficiencies. Analysis The Fort Erie SPCA has been providing animal control services for the Town of Fort Erie since The SPCA acts as poundkeeper and provides animal control services as set out in Appendix 1 to this report which is the Animal Control Services Agreement currently in effect. The current contract price for animal control services payable by the Town on an annual basis is $113, As with any organization today, especially non-profit organizations and those that have experienced a decline in bingo revenues, they are challenged to meet their budget goals. The SPCA was seeking an annual 3% increase over a three year agreement. Their financial challenges include keeping two vehicles on the road, increase in utility costs and increase in gasoline costs. In 2005 they received a bequest from an estate but such largess only occurs from time to time. Financial materials received from the SPCA are attached as Appendix 2. During the negotiations of the new contract, it was determined that certain efficiencies could be gained in their organization to maximize resources and reduce some costs, which are noted as: Improve computer programming to improve efficiencies since computer program is twenty years old. Utilize more fuel efficient vehicle(s. Reduce bookkeeping fees by performing tasks in-house. Examine e-licencing for the issuance of dog licences which can reduce costs associated with this function and look to complete the implementation of same in the Fall of Stagger the work hours when selling licences door to door since a good percentage of people are not home during the day. Investigate contracting for this service. Include address on licence applications so that a database can be developed to send e-notices of default and licence renewal communications. Look at stiffer penalties for failure to obtain a licence. SPCA Highlights The Town has entered into an agreement with the SPCA since 1977 for the provision of animal control services generally under three year term contracts;
3 Department Page 3 of 5 Report No. CS Between the period the SPCA did not receive an increase in contract price; Dog licencing fees increased in 2004 to offset any losses in 2005 and to balance the budget since the SPCA suffered an operating loss of $20,000 in 2003 which was funded from its Reserve Fund in 2004; The SPCA currently has approximately $80,000 in its Reserve Fund which is intended to carry the organization should it fall on hard times or significant capital improvements are required; The SPCA currently receives approximately $20,519 in annual bingo revenues; The SPCA employs nine people, four part time and five full time. There are two full time animal control officers; In 2006 the SPCA used $30,000 of its lottery surplus resulting in a zero balance. Financial/Staffing Implications Table 1 illustrates the SPCA contract price since TABLE / /07 Contract price (tax levy $160,918 $125,500 $127,000 $128,000 $ 98,500 $ 98,500 $113,360 Property tax exemption $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 Total cost of animal control $162,418 $127,000 $128,500 $129,500 $100,000 $100,000 $114,860 Table 2 illustrates licencing revenues for the SPCA. TABLE 2 ANIMAL CONTROL INCOME FROM 1990 Year Town Payment Licence Fees Total 1994 $160, $ 5, $166, $128, $42, $170, $98, $71, $169, $98, $77, $175, $98, $72, $170, $98, $73, $171, $98, $77, $175, $98, $76, $174, $113, $79, $192, $113, $109, $222, $113, $104, $217, $113, $105, $218, The SPCA are willing to accept a negotiated contract price as follows: Year 1 - $115, (2% increase Year 2 - $117, (2% increase Year 3 - $117,500.00
4 Department Page 4 of 5 Report No. CS The following represents the current licencing fees: TABLE 3 TOWN OF FORT ERIE DOG LICENCING FEES Current Fees 1. Early Spayed/Neutered $ Early Unspayed/Unneutered $ After Spayed/Neutered Additional $ After Unspayed/Unneutered Additional $ After June (new dog Spayed/Neutered $ After June (new dog Unspayed/Unneutered $ Vicious $ Kennel $ Replacement tag - Beginning in 1995, the Town granted a percentage of the licencing fees to the SPCA in order to reduce the Town s contract price for animal control services and to provide incentives. In 1997 the SPCA received a larger percentage of the fees and in 1998 received all of the licencing fees. A survey of area municipalities was recently conducted and Fort Erie s dog licencing fees are current. Therefore, it is not recommended at this time to increase any of the fees. Policies Affecting Proposal By-law No , as amended, passed by the Municipal Council of the Town of Fort Erie on the 18 th day of August 1997 sets out the dog licencing and related fees. By-law No , as amended, regulates dangerous dogs. Section 11(1 and (3 of the Municipal Act, 2001, as amended, enables municipalities to provide any service or thing that the municipality considers necessary or desirable for the public, subject to certain rules and matters within the animal sphere of jurisdiction. Tendering Policy By-law No provides for the tendering of goods, works and services in excess of $25,000. However, the policy provides for exclusions in circumstances where there is a sole supplier of a particular good or service and competitive purchasing cannot reasonably be undertaken. The matter of tendering animal control services was raised and investigated in 2001 and At that time only two municipalities in the Province of Ontario tendered for animal control services. Most recently, the City of Niagara Falls went through the exercise and received two responses, one being from the Niagara Falls SPCA. There was some problems encountered with the process and they are currently retendering. The SPCA has an entrenched operation and facility. It also has the ability to fundraise through lotteries and to receive trust funds. It is governed by the Ontario SPCA. The SPCA has undertaken to continuously improve its operations to gain efficiencies and maximize resources through some of the initiatives described under the analysis section.
5 Department Page 5 of 5 Report No. CS In this particular case, it is deemed reasonable to waive the provisions of the Tendering Policy. Comments from Relevant Departments/Community and Corporate Partners As stated earlier, the Clerk has met with the SPCA relative to the contract renewal price. Alternatives Council may determine to alter the contract price or direct that the licencing fees be increased in order to reduce the Town s contract price for 2008 and Conclusion Given the competing demands on the Town s budget and the financial challenges experienced by the SPCA, the proposed contract price is deemed to be fair. Attachments Appendix 1 Current Animal Control Services Agreement Appendix 2 Financial materials from SPCA
6 Appendix 1 to Administrative Report No. CS dated May 22, 2007 ANIMAL CONTROL SERVICES AGREEMENT THIS AGREEMENT made this day of, BETWEEN: - AND - THE CORPORATION OF THE TOWN OF FORT ERIE (hereinafter the Town OF THE FIRST PART THE FORT ERIE SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS (hereinafter the SPCA OF THE SECOND PART WHEREAS it is the intention of the parties to enter into an Agreement for the provision of animal control, licensing and poundkeeper services within the Town of Fort Erie; NOW THEREFORE this Agreement witnesseth that for and in consideration of the promises and payments described herein the parties agree as follows; 1. The Town agrees; (a To appoint and does hereby appoint the SPCA as Poundkeeper for the Town with the duties of such Poundkeeper to be exercised by the SPCA, to pick up and impound any animal pursuant to applicable Town by-laws and Provincial legislation, as may be amended from time to time; (b To officially appoint, if necessary, specific employees of the SPCA as Animal Control Officers and to authorize them to enforce the provisions of applicable Town by-laws for licensing and regulating animals and the inspection of pet shops, as may be amended from time to time; (c To grant to the SPCA the right to dispose of all animals impounded which become the property of the Town, pursuant to Town by-laws and Provincial legislation, as may be amended from time to time;
7 Page Two 1. (cont d (d To grant to the SPCA the right to dispose of the carcasses of all animals lawfully destroyed; (e To grant to the SPCA the right to collect and retain all pound fees, boarding fees and destruction fees pursuant to Town by-laws, as may be amended from time to time; (f To appoint the SPCA to receive, on behalf of the Town, and retain all dog license fees pursuant to Town by-laws, as may be amended from time to time; (g To pay to the SPCA all monies received from fines levied for violations of applicable Town by-laws, as may be amended from time to time; (h To appoint a member of Council to the SPCA Board of Directors at the commencement of each term of Council and the appointment shall remain in effect for the term of Council. 2. The SPCA agrees; (a To enforce the provisions of the Town s by-laws for licensing and regulating animals and for licensing pet shops, as may be amended from time to time; (b To enforce the provisions of the Town s by-laws for potentially dangerous dogs and dangerous dogs and exotic animals; (c To produce and issue, at its sole expense, such forms, tags and other materials necessary for the licensing of animals and to charge and collect such license, pound, boarding and destruction fees pursuant to Town by-laws, as may be amended from time to time; (d To receive, impound and hold for claiming by the owner, any animal delivered to the SPCA s animal shelter by an Animal Control Officer or other duly authorized person and when necessary to dispose of same by sale or destruction; (e To provide, suitably equip, operate and maintain an animal shelter capable of providing adequate accommodation for animals impounded and to ensure the operation, maintenance and expansion or renovation of same complies with relevant statutes, regulations and by-laws and to provide proof of said compliance upon request of the Town;
8 Page Three 2. (cont d (f To keep the shelter open and in operation on such days and at such hours as shall from time to time be agreed upon between the parties, to ensure that the owners of impounded animals have a reasonable opportunity to reclaim such animals; (g To pay all costs of operating and maintaining the shelter; (h To make available to all residents of the Town of Fort Erie a program of humane services in accordance with the general custom of the SPCA and the requirements of the Town from time to time; (i To employ and supervise such Animal Control Officers as may be considered necessary by the SPCA to provide the services described herein, and to provide to the Town a list of the names and addresses of such Animal Control Officers as may, from time to time, be required by the Town, and; to provide such Officers with such equipment, protective clothing and vehicles deemed necessary and to pay all costs associated with same; (j To maintain the uniformed appearance of all employees of the SPCA and to maintain all equipment, including vehicles, in a neat and tidy manner; (k To deliver to the Town on a monthly basis a written statement of operations or like report and to provide said statement or report in such form and of such content as is deemed suitable to the Town from time to time; (l To deliver to the Clerk of the Town the minutes of each Board of Directors meeting; (m To distinguish between humane society activities and animal control activities and to submit to the Town, at intervals as required by the Treasurer of the Town, a full statement of all monies received by the SPCA and to submit an audit by May 1 in regard to the activities of the previous year; (n To indemnify, save and hold harmless the Town against all fines, suits, claims or liability, demands or actions for which the SPCA may become liable by reason of any breach, violation or non-performance of any duty, term or provision described herein, or by reason of any injury occasioned to or suffered by any person or property because of any wrongful act, neglect or default arising from the SPCA s performance of this Agreement;
9 Page Four 2. (cont d (o To carry public liability and property damage insurance with an insurer satisfactory to the Town in an amount not less than two million dollars ($2,000, for public liability and one million dollars ($1,000, for property damage; (p To file proof of new or renewed insurance with the Town upon signing the Agreement, or before termination of the existing insurance, and; to provide on the insurance policies that the Town is an insured party, and to compel the insurance company to give the Town thirty (30 days notice in the event of a cancellation of the policies, and; to produce a letter of good standing from the Workplace Safety and Insurance Board at the time of signing the Agreement and from time to time as may be required by the Town; (q To pay all legal fees in regard to any collection services, prosecutions or defense actions undertaken by or imposed upon the SPCA; (r To demonstrate the establishment and maintenance of a health and safety program with objectives and standards in compliance with applicable legislation and municipal policy by providing to the Town a Health and Safety Policy and applicable Safe Work Procedures; (s To ensure that workers in their employ are aware of hazardous conditions and substances in the work place and are wearing the proper protective equipment; (t To acknowledge that health and safety provisions are included at the management level to ensure high standard of health and safety; (u To have and maintain an understanding of the Health and Safety Policy from time to time of the Corporation. 3. The term of this Agreement shall be from June 1, 2004 to May 31, For the performance of the services and provision of the materials described herein, the Town offers and the SPCA agrees to accept the following sums, payable in twelve (12 equal installments in the calendar year on the first business day of each month; (i $113, for the period June 1, 2004 to May 31, 2005; (ii $113, for the period June 1, 2005 to May 31, 2006; (iii $113, for the period June 1, 2006 to May 31, Page Five
10 5. Either party hereto may give to the other ninety (90 days written notice of an intention to amend or terminate this Agreement at any time, without penalty or payment. Any such amendment shall be the subject of negotiations between the parties and mutual agreement. 6. The SPCA acknowledges that it is not authorized to incur expenses or create liability or indebtedness on behalf of the Town. 7. This Agreement may be assigned only with the written consent of the other party. IN WITNESS WHEREOF the parties hereto have hereunder affixed their corporate seals under the hands of their proper officers duly authorized in that behalf. Signed, sealed and delivered In the presence of THE CORPORATION OF THE TOWN OF FORT ERIE Mayor Clerk THE FORT ERIE SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS I have the authority to bind the Society
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