title
APPROVE MEMORANDUM OF UNDERSTANDING BETWEEN THE ANIMAL PROTECTION LEAGUE AND THE CITY OF STOCKTON TO PROVIDE VETERINARY AND SHELTER SERVICES FOR AN INITIAL TERM OF THREE YEARS IN THE AMOUNT OF $1,308,485 FOR THE FIRST YEAR
recommended action
RECOMMENDATION
It is recommended that City Council approve, by motion, the proposed Memorandum of Understanding between the Animal Protection League and the City of Stockton for an initial three-year term expiring June 30, 2021.
body
Summary
The Animal Protection League (APL) has supported the Stockton Animal Shelter (Shelter) for many years by raising funds for equipment, supporting spay and neuter clinics, and assisting with off-site adoption events. The City needs to contract with professional veterinarian staff to assist in caring for animals brought to the Shelter. The current contract with the San Francisco Society for Prevention of Cruelty to Animals (SF SPCA) expires on June 30, 2018, and it is important there is no lapse in veterinary and shelter services. Without providing for adequate medical care, the vast improvements made to the Shelter’s live release rate over the last several years would suffer. After an unsuccessful Request for Information solicitation, wherein no responses were received from interested parties willing to provide veterinary and shelter services, the APL stepped in and offered to provide the current level of medical care and shelter services under their non-profit umbrella. City staff and APL worked on the proposed Memorandum of Understanding (MOU), which covers an initial three-year period with two one-year options for a total potential contract term not to exceed five years (Attachment A). The annual cost is $1,308,485 with a 5% increase each year. The first year of the MOU also provides for a $100,000 start-up payment to assist in a smooth transition between entities and to help with the one-time costs incurred by the APL in establishing veterinary and sheltering services. This annual amount, while significantly higher than the current MOU, is still well below the value of the services provided previously by the SF SPCA and well below the cost to provide such services if the City was to employ the same level and type of staffing.
DISCUSSION
Background
In November 2012, the City entered into an MOU with the SF SPCA. The initial relationship between the SF SPCA and the Shelter was consultative in nature but quickly grew into a partnership that included life-saving programs. The annual live release rate was 32% in 2012, 50% in 2013, 75% in 2014, and 82% in 2015. Staffing provided by the SF SPCA is one of the driving contributors to the increased live release rate, which has held steady since 2015. During the first two years of the SF SPCA partnership, the City did not provide financial contributions for the services provided; however, once it was determined that staffing, specifically veterinarian and medical assistance staffing, would be key to improving positive outcomes for Shelter animals, the City began supporting the added costs on an incremental basis. In FY 2014-15, the City contributed $60,000 to partially fund the employee costs of one full-time SF SPCA Veterinarian at the Shelter, and increased the amount to $160,000 in FY 2015-16, to $500,000 in FY 2016-17, and finally to $750,000 in FY 2017-18. The estimated value for services received by the SF SPCA is $1,500,000.
In April 2017, the SF SPCA provided notice that they would not be interested in renewing the contract upon expiration on June 30, 2018. City staff began researching various alternatives to mitigate the consequence of losing this valuable partner. Among the options considered was creating equivalent City staff positions to what SF SPCA was providing, contracting with another private or non-profit entity, eliminating the shelter services provided to San Joaquin County, and/or losing the tremendous progress made on the live release of shelter animals.
The City’s Long Range Financial Plan cannot support the addition of 15 full-time positions. Contracting with another entity seemed like the best, most viable option; however, there were no known entities with the capacity in place to assume such responsibility. Eliminating the shelter services for San Joaquin County would only provide nominal relief as they only account for approximately 30% of the total animals serviced at the Shelter. In addition, elimination of providing these services has a corresponding reduction in revenue payments. Finally, losing the progress made on the live release rate over the last several years is not a viable option because it would reopen potential legal action. The City is obligated by State Health & Safety Code to provide basic medical and sheltering services to animals.
Present Situation
The City is currently paying $750,000 to the SF SPCA for the following full-time staff assigned to work at the Shelter:
Veterinarians 2.25
Veterinary Technicians 6
On-Call Veterinary Technicians 3
Live Release Coordinator 1
Part-Time Live Release Assistant 1
Foster Coordinator 1
Volunteer Coordinator 1
The current MOU with the SF SPCA expires on June 30, 2018, and they have indicated they do not desire to continue the partnership.
There is continued public support to increase the live release rate and continually improve humane care and outcomes at the Shelter; however, this support must be balanced with the available funds to operate the Shelter. Shelter staff, in partnership with the SF SPCA, continue to spend a lot of time raising funds to support the Shelter as well as identify cost-saving ways to operate in the most efficient manner. Without continued support for medical and veterinarian services, the City will not be able to sustain the dramatic results it has achieved since 2012. The proposed MOU with APL has a term of three years, expiring on June 30, 2021, with two one-year options to extend for a total not to exceed term of five years. This MOU provides the staffing needed at the Shelter while considering the long-term future of animal sheltering.
FINANCIAL SUMMARY
The projected amount for APL services in FY 2018-19 is $1,308,485, plus an additional $100,000 one-time start-up payment, for an increase of $658,485 compared to the FY 2017-18 cost. Subsequent annual increases of up to 5% will be based on the annual service cost of $1,308,485.
The City’s Long-Range Financial Plan does not include additional funding for this service at the Shelter on an ongoing basis. If continuation of this contract is a Council priority, other services will have to be cut, or reserves will have to be used. There is a potential revenue increase which will help offset the higher cost of services; however, it is not yet in place and cannot be guaranteed at this time.
The FY 2018-19 contract increase of $658,485 is included in the proposed FY 2018-19 Annual Budget in the Police Department Animal Shelter General Fund budget, Account No. 010-2466-530. Funding for this contract is contingent on the Council’s adoption of the proposed FY 2018-19 Annual Budget.
Attachment A - MOU Animal Protection League 2018