STAFF REPORT TO THE CITY COUNCIL
DATE:
Regular Meeting of May 24, 2022
TO:
Members of the City Council
FROM:
Dante Hall, City Manager
SUBJECT: RESOLUTION APPROVING AN UPDATED AGREEMENT WITH
CONTRA COSTA COUNTY ANIMAL SERVICES DEPARTMENT
RECOMMENDATION
Staff recommends that the City Council approve a resolution authorizing the City Manager to execute an updated agreement with the Contra Costa County Animal Services Department (“Animal Services”).
FISCAL IMPACT
The City currently pays Animal Services approximately $174,000 annually through the General Fund. The updated agreement includes a defined fee structure for FY 22/23 and FY 23/24, which converts to a formula-based fee structure that will commence in FY 24/25. The fee structure is as follows:
For the fiscal year 2022-2023, $7.97 for each person residing within the City limits as of January 2022. For example, Hercules’ population is 25,864. Therefore, Hercules’ Annual Fee for FY 22/23 is $206,136. For the fiscal year 2023-2024, $9.11 for each person residing within the City limits as of January 2023. For example, if Hercules’ population remained the same (25,864), the Annual Fee will be $235,621.
For each fiscal year thereafter, the per capita rate for the Annual Fee shall be calculated using the following formula: (A) The County’s budgeted cost to provide Animal Services throughout the County in that fiscal year, minus the sum of animal licensing fees and user fees projected to be received from all County residents in that fiscal year, minus the budgeted County general fund contribution for that fiscal year, divided by (B) the sum of the population of the unincorporated area plus the population of all cities for which the County provides Animal Services.
Each year, the County will prepare a reconciliation report of actual costs incurred by the County to provide Animal Services during the preceding year.
The City’s General Fund can absorb the future cost increases if the City executes the new agreement.
BACKGROUND
Since at least 2005, Contra Costa County Animal Services has provided animal control services in Hercules through an agreement between the City and County. Animal Services performs animal control on behalf of all cities in Contra Costa County except Antioch, which has its own program.
Over the course of the past few years, Animal Services has been undergoing a strategic planning process to identify a new service model through which it can meet its legal requirements and achieve financial sustainability. Animal Services described this process in a presentation that was provided to the Hercules City Council on January 11, 2022, a copy of which is attached (Attachment C).
Animal Services is proposing a new service agreement between itself and all of the cities for which it performs services, attached (Exhibit 1 to the resolution). The new agreement more clearly defines the services that Animal Services will provide and increases per capita fees to achieve a balanced budget.
REVIEW & ANALYSIS
The current agreement from 2006 (attached) is one page in length, automatically renews each year, and provides little detail regarding what specific services will be provided. The updated agreement provides greater detail regarding service levels, including:
Detailing specific services provided under the agreement for all areas of operation, Creating accountability by listing target response times for each activity type, Defining what is covered under deceased animal services, Describing which services are not included under the agreement, and Codifying performance reporting within the agreement.,
Animal Services has conducted an extensive analysis of its current services and fee levels and determined that its current fee levels are not adequate to financially sustain its services to cities. The new, higher fees that Animal Services is proposing in its new agreement are based on an analysis of what is required to meet the specific proposed service levels. The City shares Animal Services’ interest in having a program that is financially sustainable, as it is less likely to lead to unexpected service changes in the future.
The term of the newly proposed Agreement begins on the Effective Date and continues for two years. This Agreement shall automatically renew for successive three-year periods until either party terminates this Agreement by giving the other party 90 days advance written notice of termination.
The new agreement that Animal Services is proposing primarily includes services that are mandated by the State. It does not include certain services that some community advocates have requested. Animal Services has decided that it is sensible to execute new agreements with cities that focus on meeting basic requirements, and do not increase cities’ per capita costs too dramatically, rather than executing new agreements that include more expansive services and greater cost increases. On March 17, 2022, all Contra Costa County cities received a letter of concern from a group named the Animal Rights Coalition regarding the proposed Animal Services agreement (Attachment E). The letter and attachments noted areas of concern and suggested recommendations along with other Animal Services agreements to compare. In response, Animal Services also submitted a letter to the City addressing concerns raised by citizens (Attachment F). Animal Services is not willing, at this point, to consider providing different service levels, at different fees, for different cities, although that option will be further discussed during the two-year term of the proposed agreement.
Although the City’s costs will increase under the proposed agreement, City staff believes it is beneficial to the City to execute the new agreement with more clarity and commitment from Animal Services on service levels and contributes to the financial sustainability of Animal Service programs.
ATTACHMENTS
A. Resolution
Exhibit 1 - City – County Animal Services Agreement, Hercules, July 1, 2022 B. City – County Animal Services Agreement, Hercules, July 1, 2005 C. Hercules Animal Services Agreement Presentation, January 11, 2022 D. Contra Costa Animal Services (CCAS) - Serving Our Community! – CCAS Serving Hercules
E. Letter of Concern from the Animal Rights Coalition Regarding Contra Costa County Animal Services Agreement March 2022, To 18 Incorporated Cities: New Fees July 2022 F. Animal Services Letter of April 8, 2022, Regarding Recent Citizen Concerns