CITY COUNCIL STAFF REPORT
Meeting Date: June 06, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-22 AUTHORIZING THE CITY
MANAGER TO EXECUTE AN UPDATED AGREEMENT WITH THE
CONTRA COSTA COUNTY ANIMAL SERVICES DEPARTMENT AND
RESCINDING RESOLUTION NO. 32-06
SYNOPSIS
The Contra Costa Animal Services Department performs animal control on behalf of all cities in Contra Costa County (except Antioch, which has its own program). Contra Costa Animal Services is proposing a new service agreement between itself and all of the cities for which it performs services to clearly define the services that it will provide and increase per capita fees to achieve a balanced budget between County revenue and service expenses. Staff recommends that the City Council approve the proposed resolution authorizing the City Manager to execute an updated agreement with the Contra Costa County Animal Services Department and rescinding Resolution No. 32-06.
DISCUSSION
Background
The California Food and Agricultural Code contains regulations regarding domestic animal safety and welfare. Contra Costa County has adopted local standards of Division 416 based on State requirements, and the City of Pleasant Hill has adopted the County’s standards by reference in its Municipal Code.
The Contra Costa Animal Services Department (“Animal Services”) has provided animal control services in Pleasant Hill since the City’s incorporation in 1961 through an agreement between the City and County. The current two-page agreement (Attachment B) was executed in 2006.
Animal Services performs animal control on behalf of all cities in Contra Costa County except Antioch, which has its own program. In fiscal year (“FY”) 2021/22, the City is budgeted to pay Animal Services $6.79 per capita, approximately $232,672, for its services.
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 presentations to the Public Managers Association and at the Mayors Conference.
Animal Services is proposing a new service agreement between itself and all of the cities for which it performs services (Exhibit to the resolution). The new agreement more clearly defines the services that Animal Services will provide and increases per capita fees to $7.97 in FY 2022/23 to achieve a balanced budget.
Analysis
The current agreement between the City and Animal Services, which automatically renews each year, does not contain a specific description of services to be rendered, nor performance standards. It is in the best interest of the City and Animal Services to have an agreement in place that more clearly defines these services/standards and contains clearer definitions. Attachment C is a factsheet regarding the updated agreement.
Animal Services has conducted extensive analysis of its current services and fee levels and determined that its current fee levels are inadequate to sustain service to cities. The new $7.97 per capita fee that Animal Services is proposing for FY 2022/23 is based on the County’s 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 and the City is not currently able take over the specialized service provided.
The City currently pays Animal Services $6.79 per capita annually (approximately $232,672).
Animal Services is proposing that the City pay $7.97 per capita in FY 2022/23 (approximately $272,040), and $9.11 per capita in FY 2023/24 (approximately $310,952 based on the current population from the California Department of Finance Demographic E1 report). The term of the proposed new agreement is two years, which Animal Services considers a pilot period during which it and the cities it serves can test the new agreement. This two year period will also allow for discussion of potential changes to a next version of a standard agreement to perhaps be implemented in FY 2024/25. Unless the contracting parties update the agreement before FY 2024/25, the agreement will automatically renew for successive three-year periods until either party terminates the agreement by giving the other party 90 days advance written notice of termination.
The updated agreement that Animal Services is proposing primarily includes services that are mandated by the State, creates accountability by listing target response times for each activity type, defines what is covered under deceased animal services, describes what other services are not covered, and codifies performance reporting within the agreement. It does not include certain services that some community advocates have requested (see Attachment D). Animal Services has decided that it is more practical to focus on the current two year agreement to meet basic requirements, rather than executing new agreements that would increase cities’ per capita costs dramatically.
On March 17, 2022 (sent March 16, 2022 after close of business), all Contra Costa County cities received a letter of concern (Attachment D) from the Animal Rights Coalition regarding the proposed Animal Services agreement.. In response, Animal Services also submitted a letter to the City addressing concerns raised by citizens (Attachment E). 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.
The Cities of Hercules, Moraga, and Pinole have already approved the new agreement. Although the City’s costs will increase under the proposed agreement, City staff believes it to be beneficial to the City to execute the new agreement, which has more clarity and commitment from Animal Services on service levels and contributes to the financial sustainability of Animal Service programs.
FISCAL IMPACT
The City currently pays Animal Services approximately $232,672 annually. Under the proposed agreement, it will pay Animal Services approximately $272,040 in FY 2022/23 and $310,952 in FY 2023/24. The City pays Animal Services through the General Fund. The City’s Finance Manager has included the projected costs in the proposed FY 2022/23 – FY 2023/24 biennial budget.
The updated agreement includes a defined fee structure for FY 2022/23 and FY 2023/24, which converts to a formula-based fee structure that will commence in FY 2024/25. The fee structure is as follows:
For FY 2022/23: $7.97 for each person residing within the City limits as of January 2022. For example, Pleasant Hill’s population is 34,133 (based on the California Department of Finance Demographic E1). Therefore, the Annual Fee for FY 2022/23 is $272,040.
For FY 2023/24: $9.11 for each person residing within the City limits as of January 2023. For example, if Pleasant Hill’s population remains the same (34,133), the Annual Fee will be $310,952.
For each fiscal year thereafter that the agreement is in effect, the per capita rate for the Annual Fee will be calculated using the following formula:
o (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 detailing revenue and actual costs incurred by the County to provide Animal Services during the preceding year.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Staff recommends that the City Council approve the proposed resolution authorizing the City Manager to execute an updated agreement with the Contra Costa County Animal Services Department and rescinding Resolution No. 32-06.
ALTERNATIVES TO RECOMMENDED ACTION
The City Council could not adopt the proposed resolution and provide direction to staff on how to move forward with providing animal services to the public.
ATTACHMENT(S):
A. Proposed Resolution
Exhibit: City-County Animal Services Agreement
B. City-County Animal Services Agreement (2006)
C. Contra Costa Animal Services (CCAS) - Serving Our Community D. 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 E. Animal Services Letter of April 8, 2022, Regarding Recent Citizen Concerns F. Correspondence from the Public
Prepared by: Danielle K. Habr, Principal Management Analyst/City Clerk Approved by: June Catalano, City Manager