To: Honorable Mayor and Members of City Council
From: Steve Potter, City Manager
Prepared By: Liz Habkirk, Assistant City Manager
TITLE:
Title
Animal Shelter Services Agreement
LABEL
RECOMMENDED ACTION:
Recommendation
Approve and authorize the City Manager to execute an agreement with Napa County for the provision of Animal Shelter Services
Body
DISCUSSION:
Since 2009, the cities of Napa, American Canyon, and the Town of Yountville have participated in cost share agreements with the County of Napa (County) for the operation of the Napa County Animal Shelter and Adoption Center. Each agency shares the Shelter’s net operating costs currently using an allocation methodology based on the jurisdiction’s population.
The Animal Shelter services typically include receiving and impounding animals, pet redemption, pet adoption and placement services, quarantine, micro-chipping, spaying and neutering services, dead animal disposal, and community pet ownership education. The volume of animals entering the Shelter, after dipping during the Covid Pandemic, have returned to pre-Pandemic levels and continues to grow. Since the passage of Measure A in 2016, costs for providing services at the Shelter have steadily increased particularly related to administrative tasks and veterinarian and medical service costs.
In 2023, City staff provided the Council with a presentation outlining examples of alternate methods to provide these services. However, additional research into the applicability of different models for Napa given our geographic proximity to other jurisdictions, ability to provide shelter facilities, as well as the service expectations and local needs led to the conclusion that our continued regional partnership model was most appropriate. Staff further worked collaboratively with our partner agencies and consultants to conduct an extensive review of service levels and allocation methodology options to ensure best practices were in place.
Ultimately, the consultant and the working group concluded that the current cost allocation methodology based on each jurisdiction’s share of the human population was deemed to be the most effective methodology, combining an acceptable reflection of animal population served with ease of administration. Other methodology’s considered included ones requiring extensive data gathering on services provided to individual animals, origination data for animals, a “cafeteria plan” style of service provision and others. Staff supports the collective recommendation from the partner agency working group to continue utilizing the current cost allocation methodology which has been included in the recommended updated agreement.
Following the review of the cost allocation methodology, the partner agency working group reviewed and updated the agreement language. Although minor amendments have been completed in recent years, the contract has not been significantly updated since 2019. The working group reviewed both service and administrative process language and each agency is recommending approval to their governing board. Each partner agency will enter into their own contract with Napa County for the provision of animal shelter services.
The updated contract includes minor language clarifications as well as modifications to certain contract provisions from previous agreements with the County. These include:
- Extension of the termination for convenience clause from ninety (90) to one hundred and eighty (180) days.
- Ability for partners to access data on Shelter statistics via the County website.
- Requirement to hold meetings with the partners quarterly (rather than a minimum of annually) to review operational issues.
- Defined process for partner jurisdictions to object to budget amendments or proposals.
- Defined process for providing a financial credit to partner jurisdictions for funding in excess of reserve amounts on an annual basis.
- A phase in of County administrative costs above the current maximum of $40,000 over the next two budget years based on reviews of actual costs with a new maximum administrative cost allowance of $120,000.
Staff is recommending the City Council approve the updated agreement with Napa County and authorize the City Manager to execute the agreement pending final approval. Napa County is scheduled to consider the contract at a regular Board of Supervisors meeting in May.
FINANCIAL IMPACTS:
While the allocation methodology in the new contract remains as previous, changes to the structure of charging County administrative costs will likely increase the overall City contribution. Based on the latest population information, the City’s required contribution is 61.9% of the overall operational budget. Annually, the Animal Shelter budget is reviewed by staff and included in the General Services Administration budget for approval by Council. FY 26/27 budget proposals are still under review by the County. Any updated budget information will be included in the Council’s Mid-Cycle Budget review in June 2026.
CEQA:
The City Manager has determined that the recommended action in this agenda report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Proposed Agreement
NOTIFICATION:
None.