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 Amendment
LABEL
RECOMMENDED ACTION:
Recommendation
Approve and authorize the City Manager to execute on behalf of the City Amendment No. 1 to Agreement No. C2019-144 for 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 City of Napa’s share for FY2025-26 is 62% of the operating budget plus an additional 3% contribution to the Shelter’s Capital Improvement budget, which will equate to an estimated $1.42 million total contribution.
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. There are no proposed changes to the Animal Shelter services in this Amendment.
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. Additionally, the County’s overhead costs, including salaries and benefits of staff, liability insurance, workers’ compensation claims, IT support and facility maintenance have grown significantly. While the City’s share of the budget has remained consistent during this time at approximately 62%, our total contribution will increase from a budgeted $1.2 million in FY 2024/25 to the $1.42 million projected for FY 2025/26.
In 2023, City staff provided the Council with a presentation outlining an intention to issue a Request for Proposals for Shelter Services and provided examples of alternate methods to provide these services. Since that time, to help address some of the concerns raised to the Council, the County and partner agencies have held extensive discussions on the future of shelter operations and the current population-based allocation methodology. These conversations have been productive, and the group is currently engaged with an outside consultant to conduct an allocation methodology study to help determine best practices for cost-sharing. Staff is estimating this study and subsequent discussions with the County will conclude by the end of the current calendar year.
Staff is recommending approval of the Amendment to the agreement with the County which extends the term for one year, through June 30, 2026. This will allow sufficient time for the allocation methodology study to conclude and for any changes proposed to be vetted and discussed by the Animal Shelter agency participants. Staff may return with a second amendment to modify the cost share allocation if appropriate.
FINANCIAL IMPACTS:
The funds for this agreement have been requested as a part of the FY 2025/26 and FY 2026/27 budget process. Should any changes to the cost sharing allocation methodology occur, staff would prepare a subsequent amendment to this agreement and budget adjustment for Council approval.
CEQA:
The City Manager has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Amendment No. 1 to Agreement No. C2019-144
NOTIFICATION:
None.