TO: LINDA REICH, CITY MANAGER
FROM: JACKIE MELENDEZ, ASSISTANT CITY MANAGER
SUBJECT
title
West End Animal Services Joint Powers Authority Agreement with the City of Ontario.
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RECOMMENDATION
recommendation
1) Approve the Joint Exercise of Powers Agreement establishing the West End Animal Services Agency (JPA); 2) Appoint one Chino City Council Member and two alternates (first and second), to serve as voting members of the JPA’s Board of Directors; 3) Agree to allow the City of Ontario to serve as the JPA’s Interim Administrator and to provide administrative services to the Agency, including appointing a Treasurer/Auditor-Controller and Secretary; and 4) Authorize the City Manager to execute the Agreement on behalf of the City and all other documents as appropriate to carry out the terms of the Agreement.
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FISCAL IMPACT
Once formed, the JPA agencies will be given 90-days to finalize a budget to include member contributions for Capital, Start-up, Personnel and Operational Costs. Cost sharing will be based on the number of member agencies and their anticipated needs and/or the number and scope of additional contract agencies. If no additional agencies are added, the Cities of Ontario and Chino will assume a 65/35 split, respectively. Once a budget is established, staff will return with an appropriation request if needed for FY 24-25.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Superior Customer Service
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
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BACKGROUND
The City of Chino currently contracts with Inland Valley Humane Society (IVHS) to provide animal services; including, but not limited to sheltering, licensing and low-cost clinics. In 2022, Staff began evaluating the City’s current and future needs for these services including IVHS’s ability to provide such services. Given the City’s current population growth, the addition of new households and the annexation of new areas in the City’s sphere of influence (which increases the spread of the service area and the time needed to reach the outer portions of the expanding 30 square mile City), the City’s (and region's) intensifying need for animal services has already begun to outgrow the current provider’s capacity.
While IVHS is the only provider of such services, City staff evaluated different alternatives to meet this growing need and recommends the formation of a JPA in conjunction with the City of Ontario. The City of Ontario has begun to identify locations for potential animal services sites, which are more central to the City of Chino. Once approved, the JPA agencies will pay for the Capital and Start-up costs based on the final agreed upon cost sharing calculation.
The City’s current cost is $991,416 in FY24-25 for animal services with IVHS. This amount is reduced by the revenue received each year. In the past, the City was guaranteed $320,000 in revenue, reducing the cost to $671,416. Under the City's animal control program, IVHS collects and retains all payments for animal licensing, related fees, impound fees, kennel care fees, and court fines on behalf of the City. IVHS informed staff that they would cease canvassing for collecting overdue fees. Consequently, this led them to decide to remove the guaranteed revenue provision from the contract. This annual amount is also likely to increase due to the anticipated exit of the City of Ontario and/or other cities under contract with IVHS, as the departure of a service pool member could trigger a recalculation of pooled use, redistributing the exiting member's percentage among the remaining contract cities.
The current contract with IVHS is set to expire June 30, 2025. The City has requested a one year extension to June 30, 2026. This request is currently under evaluation with an anticipated response in August. The new facility is currently anticipated to come online in July 2026.
ISSUES/ANALYSIS
The establishment of a JPA for Animal Services, which will function as a full-service animal shelter and control agency, requires consideration of several factors, including:
JPA Formation and Governance Structure
Governance of the JPA will include one (1) voting member from the City of Chino and two (2) from the City of Ontario to serve on the Board of Directors. If three or more parties are involved, the governing body of each member agency shall be responsible for appointing one Director to the governing board. Additionally, this change will necessitate a recalibration of voting and financial responsibility weights among the member agencies.
Agencies interested in becoming founding members have until July 2025, to secure their position. Founding members will play a crucial role in the agency by using their voting rights to shape key decisions and policies. They will also own their proportionate share of the Animal Services facility, which will tie their success directly to the organization's growth. Beyond this deadline, agencies still interested can be considered by the Board of Directors for membership as a "contract" agency. This designation allows them to participate in the agency's activities and benefits with different terms than founding members.
Interim Director
To allow the West End Animal Services Agency to begin operations while recruiting an Executive Director and staff, the JPA Agreement authorizes one or both of the Member Agencies to serve as the Interim Administrator and provide certain administrative services to the JPA. Therefore, if approved, this action authorizes the City of Ontario to serve as the Interim Executive Director. The Interim Administrator will provide staff to fulfill roles including Treasurer/Auditor-Controller and Secretary, along with other administrative responsibilities.
Anticipated Costs
Costs for the future operation of the Animal Services facility include Capital, Start-up, Personnel and Operational expenses. If approved, the City of Chino and the City of Ontario will be the founding Member Agencies of the JPA, with Ontario covering 65% and Chino covering 35% of all anticipated costs. These ratios may change in the future as other members join the JPA or contracts with other cities and agencies are established. An estimate of these future costs is provided below. These estimates do not take into account revenues or other operational adjustments meant to reduce this overall annual expense, nor do these estimates take into account the addition of new member or contract agencies, which may further reduce these estimates. Finally, additional State, Federal, private and/or local funds may also offset these figures.
Capital & Start-Up Costs
Capital and Start-up costs include: Land Purchase, Design, Shelter Construction and Equipment. These costs are estimated to total $44,100,000. The City of Chino's share, at the current 35%, amounts to $15,435,000. The estimated cost breakdown is as follows:
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Description |
Estimate |
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Land Purchase |
$9,100,000 |
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Design |
$2,000,000 |
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Shelter Construction |
$30,000,000 |
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Equipment Costs (Shelter) |
$1,000,000 |
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Equipment Costs (Control) |
$2,000,000 |
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TOTAL |
$44,100,000 |
Personnel & Operational Costs
When the facility is operational, the City of Chino will be responsible for 35% of the Personnel and Operational Costs to include Shelter staff, Animal Control staff and Operations. These costs are estimated to total $6,299,572. Chino’s share at the current 35%, amounts to $2,204,850. The estimated cost breakdown is as follows:
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Description |
Annual Estimate |
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Animal Shelter Staff (31 FTEs) |
$3,388,406 |
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Animal Control Staff (14 FTEs) |
$1,911,166 |
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Operations |
$1,000,000 |
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TOTAL |
$6,299,572 |
At this time, staff is recommending that the City of Chino enter into a JPA for animal services to better serve the Chino community as described in the recommendation.
Attachment: Joint Powers Agreement Draft