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Home My WebLink AboutIR 7864 [INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7864 S ep r ow. a To.the Mayor and Members of the City.Council S tember 27, 1984 X Subject: ANIMAL CONTROL KENNELING CONTRACT RENEWAL 1873 The current Animal Control Kenneling Contract expires in September 1994. On June 7, 1994, in preparation for contract.renewal, Mr. James Bias, Executive Director of the Humane Society of North Texas, notified Dr. James Agyemang, Animal Control Manager, of the Humane Society's intent to request a fee increase in the kenneling contract to $6.50 a day per animal. That request was later changed on June 29 to $5.50 per day per animal with a provision for increasing costs in the following two years to $5.75 per day per animal in FY 1995-96 and $6.00 per day per animal in FY 1996-97. On August 16, 1994, the Health Department budget was presented to City Council. At that point, the first year impact of the kenneling contract was discussed. Later, Council approved additional funds totaling$56,000 to cover the estimated $231,000 cost for kenneling services in the first year. Escalation of kenneling costs was included in the budget impact section of the decision package but was not specifically discussed during review of the budget. A brief background on the experience the City has had with the kenneling contract to date is given, followed by a discussion of current issues that may impact funding for the contract. Background on Kenneling Services Contract On. September 17, 1991, the first Kenneling Services Contract was executed; the initial term of the contract was for three years from the date of the execution. The City reserved the right, as its sole option, to renew the agreement at the end of the initial time for a period of two years. Kenneling costs, actual and estimated, are shown from January 1992 - September 1995. Fiscal Year Kenneling Cost 1991-92 $83,984 (9 months) 1992-93 $99,347 1993-94 $167,000* 1994-95 $231,000* *estimated %' The projected cost for kenneling.services in 1993-94 estimate is based on $4.32 per day per animal and 1994-95 estimate is based on $5.50 per day per animal. ISSUED BY THE CITY MANAGER FORT WORTH TFxec h INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7864 "•` September 27, 1894 soar To the Mayor and Members of the City Council page 2 of 4 .. rexay Subject: ANIMAL CONTROL KENNELING CONTRACT RENEWAL Issues Impacting Funding Source for Kenneling Contract Since the inception of the Kenneling Services Contract in 1991, significant cost increases have been experienced each year as shown above. The major revenue source identified to cover the Kenneling Services Contract is the fees collected from the City licensing program. To enhance compliance with the licensing program, the City implemented a one-tag licensing fee system in January, 1994. As of August 30, 1994, $159,420 has been collected. As a comparison, a total of$36,373 was collected in licensing fees in the previous fiscal year. Two issues have now developed that may significantly impact the major funding source, the licensing program. An amendment to the Texas Veterinary Licensing Act passed by the 73rd Legislature gives no leeway for veterinarians to share rabies vaccination information with the Texas Department of Health or local health departments. A meeting scheduled with local veterinarians on August 17, 1994, addressed the need to continue cooperative efforts in implementing the one-tag licensing system. It quickly became apparent that local veterinarians were opposed to sharing rabies vaccination information with the Health Department in light of the amendment. Their reticence to continue to share their rabies vaccination-information-with 'the-- - --- Animal Control Program has resulted in an immediate $4,000 reduction in revenues collected under the licensing program in August. We anticipate that the licensing program will continue to experience significant reductions. Staff has proposed an amendment to the Texas Veterinarian Licensing Act to enable the local health departments to access rabies vaccination information. Resolution 2005 was approved by Council on August 23, 1994, urging the Texas Municipal League to seek introduction and passage of legislation which would provide for the disclosure of veterinary records which pertain to rabies control and other zoonosis control issues to the Texas Department of Health and local health authorities. In addition to the change in the Texas Veterinary Licensing Act, a potential change may occur in the County pertaining to animal licensing. On August 9, 1994, a group of County voters presented the required 100 signatures to the County Commissioners to approve placing on the November ballot a referendum on dog registration. If the referendum passes, it will require dogs to be licensed and vaccinated County-wide. Attorneys for both the City and the County have reviewed the Health and Safety Code chapter pertaining to County registration and regulation of dogs. They agreed that if the referendum passes there will be confusion and a possible court challenge to the municipal ordinances creating registration for purposes of rabies control. ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS No. 7864 INFORMAL REPORT TO CITY COUNCIL MEMBERS E To the Mayor and Members of the City Council September 27, 1994 Page 3 of 4 ex 41 Subject: AN01AL CONTROL HENNELING CONTRACT RENEWAL Ian We have therefore proposed an amendment to Chapter 822c in the Health and Safety Code to make it clear that municipal dog registration programs will not fall to County-wide registration adopted under local option elections. This proposal will be presented in the October 1994, Inter-Intra Governmental Affairs Committee Meeting Kenneling Services Contract Renewal In light of the potential negative impact on fee collection described above, staffs original recommendation was going to be for a one year contract honoring the $5.50 per day per animal reimbursement to the Humane Society as a conservative approach. If the issues presented above are resolved with no negative impact to the City, staff was fully prepared to recommend $5.75 per day per animal in FY 1995-96, and $6.00 per day per animal in FY 1996-97. On September 16, 1994, Mr. James Bias notified Dr. James Agyemang that the Humane Society would want an increase in fees from $5.50 per day per animal to $6.00 per day per animal if the contract were for only one year. Under the contract agreed to by the Humane Society, the City would retain the termination clause which would provide for termination of the agreement at any time with or without cause by giving 30 days written notice of the City's intention to terminate. After the date of the written notice no.increase of-any-cost should_accrue .-_ . to the City. Additionally, any City contract is subject to the annual appropriation of funds by the City Council. Since one City Council cannot bind future City Councils with respect to expenditures for operations, a contract of this type is effectively a one year contract. On July 12, 1994, the Animal Control Advisory Committee recommended that the Humane Society's proposed three (3)year contract be accepted. Again on September 20, 1994, the Advisory Committee members reviewed the three year Humane Society contract proposal. They endorsed accepting the contract, noting that the 30 day termination clause could be exercised if the funds were significantly reduced by the pending legislative issues described in this report. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7864 M,NYIR`o September 27,.1994 p�FORr To the Mayor and Members of the City Council p Page 4 of 4 u `rexay« Subject: ANIMAL CONTROL KENNELING CONTRACT RENEWAL It is the intent of staff to point out the critical issues surrounding the funding of the kenneling contract. Based on direction from City Council, an M&C will be placed on the October 4, 1994 City Council agenda outlining the terms of the contract for the Animal Control Kenneling Services. The M&C will provide for a three year contract with the escalating fee. However, staff may recommend a change to this contractual arrangement should circumstances change. Bob Terrell City Manager BT:g f ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS