COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Environmental Services Agency

DATE:

May 12, 2003

BOARD MEETING DATE:

June 17, 2003

TO:

Honorable Board of Supervisors

FROM:

Marcia Raines, Environmental Services Agency Director

SUBJECT:

Agreement for Animal Control Services with the Peninsula Humane Society and Agreements with 20 Cities

Recommendation

1.

Adopt a resolution authorizing the Environmental Services Agency Director to execute an Agreement with the twenty cities of the County for the provision of Animal Control Services upon receipt of all executed City/County agreements for Animal Control Services.

2.

Adopt a resolution waiving the request for proposal process and authorizing the Environmental Services Agency Director to execute an agreement for Animal Control Services with the Peninsula Humane Society upon receipt of all executed City/County agreements for Animal Control Services.

Background

The County has contracted with the Peninsula Humane Society (PHS) for the provision of Animal Control Services to all Cities and the unincorporated areas of the County for over 45 years. The twenty Cities of the County have historically contracted with the County for Animal Control Services.

Animal Control costs increased dramatically in FY 1999-2000 due to the passage of state legislation mandating longer holding period for animals and the spay/neuter of all adopted animals. As a result of this increase, the County and Cities sought to use funds in the most efficient way possible for the provision of services. To this end a study by an independent consulting group was completed. One area of focus of the study was the allocation of Animal Control costs between jurisdictions. The County and Cities re-examined the cost sharing formula and amended the County/City contracts in FY 2002-03 to reflect a shift to a service based formula. Previous years' allocations were based on a formula involving population and assessed value.

All Animal Control revenue collected, including licensing revenue and permit fees, is used to offset the total program cost and thus reduce the County and Cities' cost share for Animal Control. Through a program monitoring committee referred to as the Animal Control Task Force, City representatives are involved in policy creation, priority setting, and program evaluation.

The Peninsula Humane Society is located on County property at Coyote Point. PHS holds a lease with the County through the year 2050.

The current contracts for service between the County and PHS and between the County and all cities end on June 30, 2003.

Discussion

In an effort to afford greater city participation in contract negotiations for the new three-year contract, a negotiation team was composed of representation from City Managers, Police Chiefs, Finance Directors, and County Environmental Services Agency staff. The team focused on working with Peninsula Humane Society staff to increase operational efficiencies and also examined current animal control service fees in order to recommend increases to recover costs. Once negotiations were completed with PHS, the recommended contract was presented to all City Managers and city staff.

The contract services to be provided by PHS will continue to include:

· Response to field service calls relating to biting and/or dangerous animals, dog packs, injured or sick animals, stray animals, and dead animal pick-up.

· Issuance of citations for violations of any state statutes or local County/city ordinances.

· Provision of shelter services, including impounding, receiving, housing, redeeming, providing veterinary treatment, adopting, euthanizing, and disposing of animals.

Notable changes from the previous County/PHS agreement include:

· Term: Three-year term with termination by either party only for breach of the contract.

· Payments:

o FY 2003-04: $4,454,397 ($52,115 increase from the current year)

o FY 2004-05: $4,624,617 (5% increase)

o FY 2005-06: $4,803,348 (5% increase)

· PHS incentive towards contract savings: In order to create an incentive for PHS to most efficiently use contract funds, language has been added allowing PHS to retain 50% of contract savings with the approval of the County.

· Records: A provision was added clarifying the records PHS must maintain and make accessible.

· Quarantines: In order to reduce contract costs, PHS will not complete phone quarantines. This service will be performed by the County.

· Barking Dog Complaints: In order to reduce contract costs, PHS will no longer respond to barking dog or noise nuisance animal complaints. The County and each City will need to make provision for response to these complaints.

· Uniform Ordinance: Each City is asked to maintain an animal control ordinance substantially similar to the County's ordinance. Should a City pass an ordinance which changes PHS levels of service or increases costs, the City must contract separately with PHS for services.

· Significant organizational and clean-up changes including: inclusion of standard County equal benefits language, changes to non-discrimination language, updated performance measures and inclusion of a mutual hold harmless provision.

Note that PHS has not agreed to the standard County Non-discrimination language. Modified Non-discrimination language is included in the contract.

Each City contracts with the County for the provision of Animal Control Services to be performed by PHS. The Agreement with each City contains the same conditions, requirements and service components contained in the PHS Agreement with the County. All cities receive the same services under the Agreements.

The following cities will be entering into contracts for Animal Control Services provided through the proposed Agreement:

Atherton Menlo Park

Belmont Millbrae

Brisbane Pacifica

Burlingame Portola Valley

Colma Redwood City

Daly City San Bruno

East Palo Alto San Carlos

Foster City San Mateo

Half Moon Bay South San Francisco

Hillsborough Woodside

Notable changes from the previous County/City agreements include:

· Term: Three-year term with no provision for earlier termination for any city. Termination by County is only by termination of the PHS contract.

· Uniform Ordinance: Each City is asked to maintain an animal control ordinance substantially similar to the County's ordinance. Should a city pass an ordinance that changes PHS levels of service or increases costs, the City must contract separately with PHS for services.

· Allocation Formula: Cost distribution is based on service levels and will be updated yearly based on a rolling three-year average of service levels.

County Counsel has reviewed both Agreements and finds them in order.

Vision Alignment

The Agreements for Animal Control Services keep the commitment of ensuring basic health and safety for all and responsive, effective and collaborative government and goals number 7: Maintain and enhance the public safety of all residents and visitors, and number 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues effecting the entire County. The Agreements contribute to this commitment and goal by providing animal control services that protect the public health and safety through a collaborative, County-wide approach.

Fiscal Impact

The total contract amount with PHS for FY 2003-04 is $4,454,397, which represents a $52,115 increase from the current year. Contract costs will increase 5% between each fiscal year. Animal Control costs to the County and Cities are offset by any animal control revenues received. After discounting revenues, the County and Cities will distribute costs based on service level percentages as detailed in the County/City Agreement. For the FY 2003-04, the County's percentage share will be 6.92%. Funds have been appropriated in the Animal Control Services 03-04 Recommended Budget for the new PHS contract and the County's share of costs. The recommended funding for the second and third years of the contract will be requested during the regular budget process for FY 2004-05 and FY 2005-06.