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APPROVE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF STOCKTON AND THE COUNTY OF SAN JOAQUIN FOR THE PROVISION OF IMPOUND AND ANIMAL SHELTER SERVICES FOR AN INITIAL TERM OF FIVE YEARS
recommended action
RECOMMENDATION
It is recommended that City Council approve, by motion, the proposed Memorandum of Understanding between the City of Stockton and the County of San Joaquin for impound and animal shelter services for an initial five-year term expiring June 30, 2023.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
The City of Stockton (City) has operated a joint animal pound (Shelter) with San Joaquin County (County) under a Memorandum of Understanding (MOU) dating back to 1981. Several operational changes made over the last several years have necessitated major revisions to the agreement, and a new MOU is now recommended for Council approval (Attachment A). Key changes center around clarification of the method, manner, and cost of services provided. The proposed MOU changes the focus from providing animal impound services to better represent the actual services being provided, including shelter and medical care. The initial term of the MOU is five years, with options to renew in five-year term increments not to exceed twenty (20) years. The cost for providing impound and animal shelter services will change from a percentage of actual costs to a per animal fee and include provisions for recovering the actual cost for extraordinary circumstances which cause an undue burden on shelter staff.
DISCUSSION
Background
In 1981, the City entered into an Agreement with San Joaquin County for the Operation of a Joint City/County Pound Facility to allow for a more efficient and economical performance of common pound activities, and to set forth a financing mechanism for capital improvements needed at the existing site, 1575 S. Lincoln Street. The Agreement was amended once, in 1991, to incorporate the County’s existing fee schedule; however, has not been amended since. The Agreement did not have an expiration date; however, did provide for a 365-day notice to terminate by either party.
The terms of the current Agreement were general in nature, and the City and County have worked cooperatively to improve services and meet the growing legal requirements for sheltering of animals. The Shelter has undergone significant operational improvements and efficiencies over the last several years with the assistance of the San Francisco Society for the Prevention of Cruelty to Animals (SF SPCA). The annual live release rate was 32% in 2012, 50% in 2013, 75% in 2014, and 82% in 2015 and has been maintained at that level for the last two years. Under the current Agreement, the County shares in the cost of operating the Shelter in arrears based upon the factor of the number of animals serviced belonging to the County, and the total operating cost. With the significant additional financial obligations over the last several years, the City and County have met several times regarding the best way to predict, plan for, and stabilize costs.
Present Situation
The proposed MOU memorializes the current practice and services provided at the Shelter, as well as sets forward some key operational changes intended to streamline processes and help Shelter staff be as efficient as possible with their time and resources. One major change that has several operational efficiency benefits is that once the animal is received at the Shelter, the animal becomes the property of the City. That means the City can shelter all animals the same with regard to treatment, disposition, and fees. Previously, the County retained control over the animal, which meant a different fee schedule and caused confusion when multiple customers in line at the Shelter were receiving different rates for the same services. Under the proposed MOU, the only fees that remain different are those for obtaining a County License.
FINANCIAL SUMMARY
The cost mechanism proposed is a per animal fee, charged quarterly. The proposed rate is $325 per animal up to 3,000 animals with an increased rate to $525 per animal for any additional animals. There is a provision for cost recovery on extraordinary events which cause an undue burden on Shelter staff, and there is a 5% fee increase for each year of the term. The anticipated annual revenue under this MOU for Fiscal Year 2018-19 is $1,080,000, based on the average number of County animals brought to the Shelter of 3,200.
The City will continue to issue County dog licenses and will transfer those revenues to the County on a quarterly basis. The other financial change resulting from the adoption of this new MOU is the elimination of separate fee schedules based on whether the animal is City or County. Under this Agreement, once the animal is received and there are no legal holds, it becomes a City animal, and the City receives all revenue associated with returning the animal to its owner or adopting it out.
Attachment A - MOU for the Provision of Impound and Animal Sheltering Services