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HomeMy WebLinkAboutStaff Report 3001 City of Palo Alto (ID # 3001) City Council Staff Report Report Type: Action ItemsMeeting Date: 7/23/2012 July 23, 2012 Page 1 of 5 (ID # 3001) Summary Title: Proposed Revenue Increases and Expenditure Reductions for Animal Services Title: Public Hearing: Proposed Revenue Increases and Expenditure Reductions for Animal Services From: City Manager Lead Department: Police Recommendation Staff recommends that the Council review the proposed Animal Services revenue increases, expenditure reductions, and staffing allocations and approve the adoption of the municipal fee changes related to Animal Services. Background The City Council approved a $449,105 reduction to the net cost of Animal Services to the City as part of the FY 2013 budget. Staff sought feedback from a Stakeholder Group comprised of Palo Alto Animal Services (PAAS) shelter staff, Friends of the Palo Alto Animal Shelter, area humane societies, private veterinarians, and other interested individuals to discuss and determine how best to reduce the budget, increase revenues and/or engage in partnership while still providing the high level of service the community has experienced in past years. While the Stakeholder Group is still meeting, staff has developed a proposal with Stakeholder input to achieve the budget reduction with on-going, structural expenditure reductions, fee revenue increases (which are outlined in this CMR) and the one-time use of some donations. Table 1 outlines the financial impact of the proposed changes with both the timeline in FY2013 as well as a scenario showing the annualized impact. The revenue amounts shown below are the net impact of the proposed revenue increases. The gross revenue that will be added to the FY2013 budget will be $302,437 which includes the one-time donations, and the 5% technology fee and other fee increases already accounted for in the FY2013 Adopted Budget. Table 1: Financial Impact of Proposed Changes Revenue Increases Effective August 1 Annualized Scenario July 23, 2012 Page 2 of 5 (ID # 3001) Spay/Neuter Revenue Increase - Increase volume by 25%, booking 3,000 appointments annually - Increase Resident/Partner City Fees by average of 22% - Increase Non-Resident/Partner Fees by average of 50% $131,810 $143,793 Dog Licenses - Increase volume by 30% through partnering with local veterinarians - Increase fees to all owners by average of 23% $25,553 $27,876 Vaccination Revenue - Increase fees to all customers by 33%, except for rabies vaccination $8,931 $9,743 Adoptions - Increase fees to all customers by 25% $3,609 $3,938 One-Time Donations (new in FY 2013) - Santa Clara County $47,000 - Matties Fund $25,000 - Anonymous Donation for Volunteer Coordinator $35,000 $107,000 $0 Total Additional Revenue $276,903 $185,349 Expenditure Reductions Effective January 1 Annualized Scenario Eliminate 1.0 FTE Animal Control Officer ($45,635) ($91,270) Eliminate 1.0 FTE Supervisor Animal Services ($64,909) ($129,818) Eliminate 0.5 FTE Volunteer Coordinator (Saved for FY 13) N/A ($56,213) Eliminate 0.10 FTE Hourly Veterinarian, effective July 1st ($7,125) ($7,125) Total Expenditure Reductions ($117,669) ($284,426) Draw from Donations Received in Prior Fiscal Year $54,533 - Total Placeholder Impact ($449,105) ($469,775) Discussion Staff’s proposal is comprised of approximately 40% revenue increases and 60% expenditure reductions to meet the $449,105 FY 2013 net cost reduction target. This plan represents the best option to maintain acceptable levels of service for the community and our partner cities while significantly reducing Animal Services’ cost to the General Fund in FY 2013. Revenue Increases Proposed fee increases, which are included as attachment 1, are integral to the success of this plan and are reasonably competitive given the significantly higher costs faced for many of these services in the private marketplace and lack of suitable public competition for the same services. On June 14, 2012, the stakeholder group held its first meeting and there was consensus that Animal Services fees needed to be raised, although specific proposals were not discussed. Staff met separately with members of the stakeholder group who expressed a particular interest in fees and discussed our current fee structure and potential opportunities and challenges related to increasing or changing fees. Spay and Neuter Fees July 23, 2012 Page 3 of 5 (ID # 3001) The most integral component of this plan is increases to spay/neuter fees and anticipated additional surgery volume. Under this plan, Animal Services would continue to provide spay/neuter and vaccination services to individuals not residing in Palo Alto or our partner cities, who account for approximately 75% of spay/neuter volume and 60% vaccination volume (other services, such as surrenders or animal control activities, are not offered to individuals outside of Palo Alto or its partner cities). These individuals from outside of Palo Alto or our partner cities who receive service through the spay and neuter clinic would see the most dramatic fee increases, but the costs for these increases are still substantially lower than private veterinarian rates and competitive with other local low-cost providers. Under this plan, the average costs of all spay and neuter surgeries at the shelter would be $95 for residents and $125 for non-residents. In addition, members of the revenue subcommittee of the Stakeholder Group recommend that those individuals using vouchers at the PAAS provided by the Palo Alto Humane Society (PAHS) be given the resident fee. Staff concurs with this partnering recommendation as proposed by PAHS. Despite the recommended higher fees, Staff does not anticipate negative impacts on the volume of surgeries performed because of Palo Alto’s status as one of the few public low-cost spay and neuter clinics and wider service availability. In addition, most of the surgeries performed at the shelter are for smaller animals, which see the smallest increase in absolute dollar terms. Maintaining a full-time veterinary staff and continuing to provide these services to individuals outside of our service area is the most cost-effective option. Due to legal mandates to provide veterinary care to injured stray animals and sterilization services for adopted animals, the City would be required to provide veterinary services regardless of whether or not the City employed a veterinarian, likely through a contract veterinarian and agreements with local animal hospitals. The City would likely have to pay a minimum of $95,000 a year to provide this minimal level of service and could not offer spay/neuter or vaccination services to the public, which would result in the loss of more than $200,000 annually in revenue. In addition, preliminary cost recovery information shows that the City currently provides a 39% subsidy for providing spay and neuter services. Staff’s proposal reduces this subsidy substantially and mitigates the burden of increased fees to residents and partner cities by raising fees for non-residents at a greater rate than residents. Not only does this lessen the impact of fee increases on residents, it also assists in sustaining the program as a whole since not providing these services to non-residents would necessitate much higher resident fees to achieve similar revenue targets and would likely lead to fewer spay/neuter surgeries performed. Staff has also included an estimated 25% volume increase in the number of spay and neuters performed. This is a conservative estimate to restore volume numbers to those similar to the past three years; as well appointment availability will be expanded to ensure the target number of annual surgeries is reached. Other Services Most vaccination fees will increase by $5, except rabies vaccines which will see no increase, and dog licenses will be increased by $2-8 depending on the type and duration of license. In addition, dog license revenue should continue to increase in part due to increased compliance activities, such as working with area veterinarians to obtain rabies vaccination information in conformance with California Health and Safety codes. The annualized net impact of all revenue increases is approximately $185,000. Staff does July 23, 2012 Page 4 of 5 (ID # 3001) not anticipate volume reductions in vaccinations or in pet licensing due to the small dollar amount of the increases. While significant volume reductions due to the fee increases are not anticipated, the precise impact on volume is unknown and will have to be evaluated throughout the fiscal year. Staff recommends reviewing revenue projections in November 2012 and supplementing any projected shortfalls with additional draws from the Animal Services Donation Fund. Expenditure Reductions The plan also calls for the structural elimination of 2.6 Full-Time Equivalents (FTEs) in Animal Services, most effective on January 1, 2013, consisting of 1.0 FTE Animal Control Officer, 1.0 FTE Animal Services Supervisor, 0.50 FTE Volunteer Coordinator, and 0.10 FTE Management Specialists (Hourly Veterinarians). The annualized impact of these expenditure reductions is $284,426. The reductions of management staffing through the elimination of the Animal Services Supervisor position would require that longer-term planning such as disaster preparedness, training, participation in numerous countywide programs, and mutual aid be prioritized against other day-to-day responsibilities. The Volunteer Coordinator position would be saved for FY 2013 due to an anonymous donation, but would be eliminated in FY 2014. At that point, the shelter’s volunteer program would be maintained by absorbing the duties of the Volunteer Coordinator into the responsibilities of the remaining staff. In addition, PAAS may consider alternative options for these responsibilities in the future, such as having a volunteer or group of volunteers take on the responsibilities of the volunteer program The elimination of one Animal Control Officer (ACO) would result in field coverage going from two officers to one officer 85% of the time. There would likely be a slight negative impact on response times from this reduction in some instances. For example, there would be no back up officer in cases of simultaneous calls for service, calls for service with multiple animals, or field coverage in times of illness, vacation or family leave. With only one field officer on duty, field safety would require back-up response from other public safety officers. With the loss of Mountain View’s calls for service, average PAAS daily calls for service are expected to decrease from approximately 10 per day to approximately 7 or 8 per day between the months of November to April and decrease from approximately 13 per day to 10 per day between the months of May and October. This reduced level of calls will offset some of the impact of the position eliminations, but could still result in days where lower priority calls, such as deceased animal pickups, experience a delayed response and could be held over for the following shift during particularly busy days. The mid-year period of May through October can consistently yield very high call volumes which will significantly stress field service operations. For example, in 2011, PAAS had more than 25 days where 14 or more calls for service were received and several days of more than 20 calls for service, not including Mountain View calls for service. In these instances, there is a very high likelihood that low priority calls would stack-up and be held over into the following day and overtime would be needed to clear higher priority calls each shift. Calls requiring a police officer would be prioritized against other calls for service, which would also impact response times and result in additional overtime. July 23, 2012 Page 5 of 5 (ID # 3001) Attachments: 2013 Animal Services Muni Fee Increases (PDF) Prepared By: Ian Hagerman, Sr. Performance Auditor Department Head: Dennis Burns, Police Chief City Manager Approval: ____________________________________ James Keene, City Manager Dogs and cats Rabbits Parakeets, chickens, pigeons, doves Cockatiels Rats, hamsters, guinea pigs, mice Exotics Adoption Hold Fee Cats Dogs Large animals (horse, cow, pig) Rabbits Small animals (reptiles, birds including poultry) Dogs, cats, rabbits (per animal) – up to 20 lbs. Each additional animal Dogs up to 75 lbs. Dogs 76 lbs. And over Large animals up to 150 pounds (no animal accepted overweight) Small animals and birds Request for transport of owned dead animals up to 100 pounds Birds, small animals Domestic animals to 20 lbs. Dogs 21 to 75 lbs. Dogs 76 pounds and overCremation Service of Owned Animals includes euthanasia, if applicable Private Communal Private Communal Private Communal 0-24 pounds $130.00 $90.00 $141.00 $98.00 $140.00 $100.00 25-49 pounds $145.00 $105.00 $157.00 $114.00 $160.00 $115.00 50-75 pounds $160.00 $120.00 $173.00 $130.00 $175.00 $130.00 76-99 pounds $175.00 $135.00 $189.00 $146.00 $190.00 $150.00 100-150 pounds $200.00 $150.00 $216.00 $162.00 $220.00 $165.00 Custom engraved plaque additional fee Impoundment Fees Cat First offense Second offense Third and subsequent offense Dog – licensed First offense Second offense Third offense Fourth offense Fifth - Tenth offense Eleventh or subsequent offense $40.00 $75.00 $110.00 $130.00 $30.00 $45.00 $60.00 $30.00 $45.00 $60.00 $110.00 $27.00 $43.00 $59.00 $38.00 $76.00 $108.00 $130.00 $11.00 $43.00 $16.00 $27.00 $43.00 $59.00 $108.00 $135.00 $162.00 $100.00 Actual cost, including transportation expense, will be charged to house the animal at the $5.00 $3.00 $38.00 $9.00 $49.00 $108.00 $43.00 $5.00 $27.00 $40.00 $150.00 $100.00 $120.00 $35.00 $70.00 $40.00 $55.00 Disposal of Dead Owned Animals $125.00 $10.00 $25.00 $15.00 $20.00 Euthanasia Fees (includes animal disposal) $45.00 $55.00 $25.00 $135.00 $40.00 $5.00 $5.00 $40.00 $43.00 $25.00 $25.00 $25.00 $27.00 $5.00 $5.00 Fee established by Animal Superintendent Fee established by Animal Superintendent $27.00 $5.00 Fee established by Animal Superintendent $16.00 $16.00 $125.00 POLICE DEPARTMENT Animal Services 2012 FEE 2013 PROPOSED FEE Adoptions: include a $10.00 coupon off a future S/N surgery valid for 1 year from issue $100.00 2013 ADOPTED FEES In conjuction with advertised national and local animal welfare events, the Superintendent may lower the adoption fees to support the adoption of shelter animals. $20.00 Actual cost, including transportation expense, will be charged to house the animal at the Actual cost, including transportation expense, will be charged to house the animal at the Board Fees To be paid in addition to impound fee for all stray and impounded animals (including owner-surrendered animals for rabies quarantine). $15.00 $20.00 $15.00 Fees are per calendar day, including day received. $5.00 $5.00 $3.00 $3.00 $35.00 $40.00 $100.00 $110.00 $59.00 $108.00 $45.00 $8.00 $9.00 $50.00 $55.00 $60.00 $10.00 $165.00 City of Palo Alto FY 2012 Municipal Fee Schedule 20-1 POLICE DEPARTMENT Animal Services 2012 FEE 2013 PROPOSED FEE2013 ADOPTED FEES Dog – unlicensed First offense Second offense Third offense Fourth offense Fifth - Tenth offense Eleventh or subsequent offense Other Animals Large animal (horse, cow, pig, goat) Small animal (bird, rabbit, reptile) Special Impoundment Fees Dog – licensed Dog – unlicensed State Mandated Fees First offense Second offense Third and subsequent offense Licenses and Pet Identification License for a period of: Per Dog If Spayed or Neutered Per Dog If Spayed or Neutered Per Dog If Spayed or Neutered 12 months $30.00 $15.00 $32.00 $16.00 $40.00 $20.00 24 months $50.00 $25.00 $54.00 $27.00 $60.00 $30.00 36 months $70.00 $35.00 $76.00 $38.00 $80.00 $40.00 Late Fee - Thirty (30) days after expiration, or after 10 days in the case of new residents. Late Fee also applies for licenses which are purchased in response to a citation or animal impound. $20.00 $30.00 $22.00 $32.00 $30.00 $30.00 Cat ID Cat ID-altered animal Replacement license tag (dogs) Miscellaneous Sales, Pet Supplies Animal Control Officer/Veterinary Technician City Veterinarian Quarantine Home Inspection Fee IM & SQ IV IV solu-delta cortef 100 mg IV solu-delta cortef 500 mg IV IM Gas Local SQ (cat) SQ (dog) IV catheter plus insertion IV fluids IVAC set up and use Minimum surgery and preparation Surgical time/Vet treatment time $38.00 $100.00 $125.00 $170.00 $200.00 $100.00 $25.00 $50.00 $70.00 $95.00 $135.00 $49.00 $70.00 $92.00 $135.00 $162.00 $189.00 $76.00 $32.00 $38.00 $49.00 $54.00 $24.00/liter $16.00/day $38.00 $54.00 $11.00/5 years $5.00/5 years $5.00 $56.00/hour $108.00/hr $27.00 $38.00 $43.00 $54.00 $35.00 $100.00 Unaltered, impounded stray dogs and cats. Includes any animal impounded or found running at large in Foothills Park, Byxbee Park and Baylands preserve. $50.00 $45.00 $65.00 $85.00 $81.00 $22.00 $76.00 $114.00 $125.00 $150.00 $22.00/liter $15.00/day $20.00 $10.00/5 years $35.00 $40.00 $16.00/day $30.00 $32.00 $35.00 $45.00 $38.00 $49.00 $54.00 $24.00/liter $50.00 $54.00 $81.00 for first 30 minutes, $1.50 per minute thereafter $43.00 $50.00 $54.00 $70.00 $76.00 $75.00 for first 30 minutes, $1.50 per minute thereafter $50.00 $81.00 for first 30 minutes, $1.50 per minute thereafter $56.00/hour $100.00/hr $108.00/hr $5.00/5 years $5.00/5 years $5.00 $5.00 $52.00/hour The following charges are applicable to sick and/or injured stray animals and are payable at the time of redemption. Included in the fees are the Veterinarian and Technician’s time as well as the cost of materials. At cost outside veterinary treatment will be the responsibility of the animal owner. $25.00 $27.00 $35.00 $38.00 $40.00 $38.00 $108.00 per hour$100.00 per hour $108.00 per hour Fee set by the Superintendent, Animal Services Division. Veterinary Services Miscellaneous Service Fees Injections Sedation-Anesthesia Fluid Therapy $175.00 $75.00 $50.00 $100.00 $100.00 Surgery (not including anesthesia) $35.00 $50.00 $10.00/5 years $70.00 $35.00 $35.00 $105.00 City of Palo Alto FY 2012 Municipal Fee Schedule 20-2 POLICE DEPARTMENT Animal Services 2012 FEE 2013 PROPOSED FEE2013 ADOPTED FEES Oral or Topical treatment Flushing drains Force Feeding Flourescein Eye Stain Intensive Care (additional) Incubator/ICU cage with O2 Medical Grooming Medication - Rx fee Special Prescription Diets Wormings - Interceptor Bandage paw Robert Jones Splint Cite CPV test Azostick or Dextrostick Heartworm test DTM Fecal FeLV/FIV test Multistix urinalysis PCV PCV/TP Skin scraping Reference Lab (CVD) Kennel, birds, or animals Breeding permit - cat, dog, or bird Dangerous animal including microchip Livery stable, boarding stable Livestock Pet Shop/Groomer Boarding Pet Show or Fun Match Pony ride, pony ring Riding academy Traveling menagerie or zoo Spay and Neuter Clinic Fees Resident Non-Resident Resident Non-Resident Resident Non-Resident Cat Neuter (male)**$65.00 $90.00 Cat Spay (female)**$95.00 $130.00 0-30 pounds $100.00 $135.00 31-50 pounds $115.00 $155.00 51-75 pounds $135.00 $175.00 76-99 pounds $155.00 $210.00 100 pounds and over $250.00 $325.00 0 - 30 pounds $120.00 $160.00 31 - 50 pounds $135.00 $175.00 51 - 75 pounds $155.00 $210.00 76-99 pounds $190.00 $250.00 100 pounds and over $270.00 $345.00 Rabbit Neuter $75.00 $95.00 Rabbit Spay (female)$100.00 $120.00 Rat Spay (female)$100.00 $120.00 Rats, Guinea Pigs (male)$75.00 $95.00 Clinic Board Fee per day – all animals (Special arrangements required) $20.00 $20.00 Late fee for Spay and Neuter Pickup $25.00 $25.00 48 hour cancellation fee (non-refundable)$25.00 $25.00 No show fee (non-refundable)$50.00 $50.00 $165.00 $165.00 $165.00 $165.00 $100.00 $325.00 $165.00 $60.00 $165.00 $165.00 $60.00 $162.00 $162.00 $54.00 $324.00 $162.00 $54.00 $162.00 $0.00 $0.00 $211.00 $59.00 $87.00 $92.00 $103.00 $119.00 $141.00 $92.00 $87.00 $59.00 $16.00 $16.00 $27.00 $22.00 200% of our cost $108.00 $119.00 $141.00 $168.00 $3.00 each time $27.00 $32.00 $54.00 per hour $81.00 per day $81.00 per hour $11.00 - $65.00 $5.00 per day $27.00 Bandages/Splints $5.00 each time $16.00 $3.00 each time $81.00 per day $5.00 each time $15.00 $16.00 $5.00 each time $50.00 per hour $54.00 per hour $75.00 per day $3.00 each time $40.00/animal $20.00 $20.00 $43.00/animal $22.00 $22.00 $80.00 Dog Neuter (male)** $195.00 $100.00 Dog Spay (female)** $110.00 $130.00 $95.00 $233.00 $70.00 $55.00 $80.00 $85.00 $300.00 $150.00 $50.00 $150.00 $50.00 $150.00 $150.00 $150.00 $22.00 200% of our cost $150.00 $50.00 200% of our cost $20.00 $54.00 $162.00 $162.00 $27.00 $15.00 $15.00 $25.00 $16.00 $16.00 $16.00 $27.00 $16.00 $35.00 $30.00 $25.00 $16.00 $38.00 $32.00 $5.00 per day $75.00-95.00 $38.00 $32.00 $38.00 $65.00 $25.00-40.00 $26.00-43.00 $27.00 $25.00 $75.00 per hour $81.00 per hour $10.00 - $60.00 $11.00 - $65.00 $30.00 $32.00 $26.00-43.00 $70.00 $77.00-102.00 $70.00 $77.00-102.00 $35.00 $15.00 $38.00 $5.00 per day $110.00 $130.00 $215.00 $65.00 $155.00 $15.00 $85.00 $55.00 $3.00 each time $3.00 each time$3.00 each time Common Procedures (not including anesthesia) Labwork Permits (annual fee or per event) City of Palo Alto FY 2012 Municipal Fee Schedule 20-3 POLICE DEPARTMENT Animal Services 2012 FEE 2013 PROPOSED FEE2013 ADOPTED FEES Nail Clip Droncit injection (tapeworms) Dewclaw removal (per dewclaw) Deciduous teeth extraction (per tooth) Wound care Antibiotic injection Rx for clinic Special Rx Previously spayed/neutered Feral rescue own vaccine Feral rescue own Felv/FIV test Umbilical hernia Cryptorchid plus neuter fee Pre-surgical labwork Obesity fee plus spay fee Pregnancy fee plus spay fee Ear mite treatment Heartworm Leukemia/FIV Combo test Bordetella FVRCP DA2PP Leukemia/vaccine Rabies Rabies (Actual Cost Clinic) Puppy Package Included is DA2PP vaccine at 8,11 and 15 weeks of age; rabies vaccine at 16 weeks of age, and a microchip Kitten Package Included is FVRCP vaccine at 8,11 and 15 weeks; rabies vaccine at 16 weeks and a microchip Microchip Microchip rescue group Deposit per trap (2 trap maximum) Minimum rent for first 3-day usage Additional per day rent (calendar day) max 14 daysTraining/Behavior Classes Pre-registration (required) Behavior Consultation $40.00 $20.00 $10.00 $6.00 $100.00 $100.00 $20.00 $20.00 $20.00 $20.00 $35.00 $5.00 $15.00 $75.00/hour plus $81.00/hour plus $25.00-$100.00 $27.00-$108.00 $10.00 $6.00 $81.00 $81.00 $16.00 $16.00 $16.00 $16.00 $108.00 $16.00 $6.00 $35.00 $75.00 $38.00 $32.00 with surgery only $32.00 with surgery only $16.00-54.00 $16.00 $16.00-54.00 cost + $16.00 service fee Testing $38.00 - $70.00 $5.00 $16.00-135.00 cost + $26.00 service fee $22.00-43.00 $16.00 - $54.00 $26.00 Trap Rental $10.00 $15.00 $32.00 $22.00 $16.00-54.00 $15.00 $15.00 - $50.00 $20.00 - $75.00 $25.00 $30.00 $30.00 with surgery only $35.00 with surgery only $30.00 with surgery only $35.00 with surgery only $100.00 $100.00 cost + $26.00 service fee $20.00-40.00 $22.00-43.00 $5.00 $5.00 $16.00 $20.00 Services performed by the City Veterinarian in conjunction with spay and neuter surgeries $5.00 $5.00 $30.00 $35.00-50.00 $20.00 $25.00 cost + $25.00 service fee $15.00 $16.00 $5.00 ** A $5.00 discount will be applied to all dogs and cats five months or younger. * The animal shelter staff reserves the right to refuse service to any animal they deem unsuitable for reasons of safety, housing, etc. $75.00 $35.00 - $65.00 $16.00 $15.00-50.00 $15.00 $15.00-50.00 cost + $15.00 service fee Vaccinations $15.00 $16.00-54.00 cost + $16.00 service fee $35.00-75.00 $15.00-125.00 $25.00-150.00 $15.00 $15.00 City of Palo Alto FY 2012 Municipal Fee Schedule 20-4