HomeMy WebLinkAboutCSD-13-010 - Presentation - Kitchener-Waterloo Humane Society1
Staff Re,~ort
KIT(;x~l~`~.R ~ommunityServicesDepartmen~ www.kitthenerca
REPORT TO: Community and Infrastructure Services Committee
DATE OF MEETING: January 28, 2013
SUBMITTED BY: Michael May, Deputy CAO, Community Services
Department, 519-741-2200, extension 7079
PREPARED BY: Shayne Turner, Director of By-law Enforcement, 519-741-
2753
WARD(S) INVOLVED: All
DATE OF REPORT: January 22, 2013
REPORT NO.: CSD-13-010
SUBJECT: Presentation by the Kitchener-Waterloo Humane Society
RECOMMENDATION:
That City staff work in collaboration with the Kitchener-Waterloo Humane Society and the
City of Waterloo, where appropriate, to develop a Responsible Pet Ownership Strategy,
and report to Council at a future Council meeting.
BACKGROUND:
The City of Kitchener and the Kitchener Waterloo Humane Society (KWHS) has a long standing
contractual relationship relating to provision of animal control, shelter, adoption and licensing
services.
On June 18, 2012, the Community and Infrastructure Services Committee considered Report
No. CSD-12-085 (copy attached) relating to authorizing a renewed contract between the City
and KWHS, which outlined the services provided under the terms of the contract.
The report also indicated the KWHS's intent to make a presentation at a future committee
meeting to discuss the concept of a responsible pet ownership strategy.
REPORT:
An overview of the services provided by KWHS is contained in the attached report CSD-12-085.
The focus of this report is to highlight the presentation to be made to the Community and
Infrastructure Services Committee on January 28, 2013, by Jack Kinch, Executive Director of
KWHS. The presentation will discuss some history of the relationship between the City and
KWHS, what the KWHS does outside of the contract with the 2 cities, challenges the KWHS,
and in turn the City, currently faces and some ideas around how to proceed with an approach to
address the challenges identified.
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Going forward, the "approach to addressing the challenges identified" can be better described
as a strategy to encourage responsible pet ownership. It is anticipated that the development of
such a strategy may include discussions on how to encourage pet owners to licence and/or
provide a means of permanent identification for their pets, have all their pets spayed or
neutered, access training on physical care, socialization and medical attention for their pets and
ensure that their pets do not become a threat or nuisance in the community.
The process to review and develop a strategy, along the lines as noted above, has not yet been
clearly defined. However, it is anticipated that it will include a review of programs implemented
in other jurisdictions as well as a consultation process with area stakeholders.
Subject to Council's direction, further information regarding the process and timing of a review
can be distributed to members of Council under separate cover at a later date.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The aforementioned amendments support the Community Priority of Quality of Life, as
contained in the City's Strategic Plan.
FINANCIAL IMPLICATIONS:
None identified at this time.
COMMUNITY ENGAGEMENT:
Subject to Council's direction, any initiative to develop a responsible pet ownership strategy will
include a consultation process involving interested stakeholders. Details of any such initiative
will be communicated to Council before moving forward.
ACKNOWLEDGED BY: Michael May, Deputy CAO, Community Services Department
Encl.
9-2
1
Staff Re,~ort
KIT(;x~l~`~.R ~ommunityServicesDepartmen~ www.kitthenerca
REPORT TO: Community and Infrastructure Services Committee
DATE OF MEETING: June 18, 2012
SUBMITTED BY: Mike Selling, Interim Deputy CAO, 519-741-2669
PREPARED BY: Shayne Turner, Director of By-law Enforcement, 519-741-
2753
WARD(S) INVOLVED: All
DATE OF REPORT: June 11, 2012
REPORT NO.: CSD-12-085
SUBJECT: CONTRACT WITH THE KITCHENER-WATERLOO
HUMANE SOCIETY
RECOMMENDATION:
That the Mayor and City Clerk be authorized to execute agreements, subject to the
satisfaction of the City Solicitor, with the Kitchener-Waterloo and North Waterloo
Humane Society and the Corporation of the City of Waterloo, for the provision of animal
control, pound, dog licensing, and animal by-law enforcement services, as well as the
animal spay-neuter program.
BACKGROUND:
The City of Kitchener has a long standing relationship with the KW Humane Society (KWHS), by
way of agreements to provide for animal control, pound services, dog licensing, and animal by-
law enforcement services, as well as spay and neuter programs.. The agreements are actually
3 party agreements, which include the City of Waterloo. Typically these agreements are
developed and executed to run with the terms of Council. In January of 2011, Council adopted
staff's recommendation in Report No. CSD-11-006, providing fora 1 year extension to the 2007-
2010 contract, to give City and KWHS staff an opportunity to review and negotiate a variety of
issues. As such, the current contract expired at the end of 2011 and this report discusses the
negotiations towards a new contract. Both the City and KWHS have agreed to continue
applying the terms of the expired contract while progress was being made in the current
negotiations.
REPORT:
The financial structure of the City's past contracts with KWHS is based on a base amount, paid
to KWHS, which is subject to inflationary adjustments year over year and a revenue sharing
arrangement with respect to dog licensing fees. Services performed by KWHS include:
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Provision of a Pound facility and performance of legislated Poundkeeper duties in accordance
with by-laws and legislation
- Provision of by-law enforcement services pertaining to the City's by-laws regarding dogs
and animals including the designations of potentially dangerous, dangerous, and
prohibited dogs (it should be noted that the City's By-law Enforcement Division also
provides by-law enforcement services);
- Inspections of exhibitions/circuses involving animals, pet shops, kennels, boarding
kennels, and doggy daycares pursuant to applicable by-laws;
- Catching and impounding of stray dogs, picking up stray cats, and picking up injured or
dying wild and domestic animals;
- Removing and disposing of dead animals from public places;
- Assisting the Fire Department and Waterloo Regional Police Services in capturing,
removing, and sheltering domestic animals;
- Assisting to the City in creation or refinement of by-laws respecting animals;
- Keeping records in accordance with standards set out in the Agreement and provincial
legislation;
- Administering the City's dog licensing by-law program, based on a revenue sharing
model (details to be discussed later in this report); and
- Administering the spay and neuter program contributed to by the City (details to be
discussed later in this report).
As staff entered into negotiations with KWHS in 2011 and subsequently into this current year,
there was an understanding between both parties that a full clause by clause review of the
contract should be undertaken to ensure that the contract reflected the actual services provided
by KWHS. Over time, it is believed that the actual services provided, had expanded significantly
from what the contract states, all the time being for the better, to the point that the contract did
not accurately represent the current situation. It was understood and accepted that such an in-
depth review would likely take longer than first anticipated when staff recommended a 1 year
extension. However, the longer term benefits and contract clarity would be worth the effort and
the time required.
As a result, staff believe that the draft contract being recommended to Council is an accurate
reflection of the current relationship, meeting the expectations of both parties. The following is
an overview of the key elements and changes from previous contracts.
Administrative Lanauaae
A great deal of language in the previous contracts was adjusted to accurately reflect current
services provided. It is believed that the refining of the contract language will facilitate a more
streamlined negotiation process in future years, by allowing staff to concentrate on the
elements of the agreement most likely to undergo negotiation, (ie. financial compensation).
9-4
Term of Contract
Both parties are recommending an initial 2 year term for the draft contract, with an
understanding that the aim of subsequent contract negotiations would be 4 year terms. This
initial 2 year term will serve 2 purposes. Firstly, it will allow both parties to further engage in the
development of initiatives aimed at a "responsible pet ownership strategy". Secondly, it will
offset the expiry date of future contracts so as not to coincide with the term of Council. The net
result of this change is that a newly elected Council will not be required to consider such an
extensive contract so early in their term.
Base Contract Amount
Staff are recommending a 2% inflationary increase for 2012 and 2.75% in 2013. Staff believe
that this increase can be accommodated within the existing budget allocations, with details
provided in the Financial Implications section.
Dog Licensing Program
During the course of our negotiations, the Humane Society identified its concern that it has been
chronically underfunded in provision of animal services. The Humane Society presented some
basic financial data indicating that Kitchener's per capita animal services costs are much lower
than the amounts paid in other municipalities across the province. The Humane Society also
identified a concern that the past model for sharing the dog licensing revenue is structured to
favour the City in terms of future growth and provides virtually no financial incentive for the
Humane Society to expend resources on growing the licensing program.
The City and the Humane Society explored ways to increase funding to the Humane Society
without negatively impacting the tax base. The Humane Society provided some details on how
it may be able to increase the number of dog licences being purchased in a manner that is
mutually beneficial. As such, staff are proposing a refined cost sharing structure which is more
equitable for the KWHS and provides them with a distinct financial incentive for growth, while at
the same time providing a guaranteed revenue stream for the City which is higher than in
previous years.
The old model included a base payment of $177,137 to the Humane Society with a 50/50 split of
licensing revenue over that base payment but did not allow the Humane Society to retain any
portion of increases in the prices of licenses since 2007. In 2007, the Humane Society retained
approximately 86% of licensing fees pursuant to this arrangement but by 2012, the Humane
Society's portion had dropped to approximately 47% of licensing fees collected as they did not
share in the rate increases over that time frame. The City's total payment from licensing
revenue in 2011 was $194,568.
The new model requires the Humane Society to pay the City the greater of $207,263 or 36% of
total gross licensing fees collected by the Humane Society in each of 2012 and 2013. This
guaranteed minimum payment exceeds the City's share of licensing revenue from 2011.
However, this arrangement allows the Humane Society to share cost of living increases to
licenses and will hopefully make it worth the Humane Society's while to allocate additional
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resources to the enforcement of licensing provisions thus expanding the licensed base to the
benefit of the City and the Humane Society.
Spay/Neuter Programs
For many years, the City has provided $30,000 annually for a rebate program relating to pets
adopted from the KWHS. The aim of the program is to encourage people to have pets adopted
from the Humane Society sterilized as a means of controlling animal populations. In the past, a
person adopting an unsterilized animal from the Humane Society was required to leave a $75
deposit which would be returned upon presentation of proof that the animal had been sterilized.
Additionally the purchaser would be given a voucher intended to equal the cost of a discounted
sterilization procedure. These vouchers could be applied to a sterilization procedure with any
vet. The vet would sign off and the Humane Society would then refund the voucher amount.
Kitchener contributed 22% of the costs of the vouchers and Waterloo contributed 11 %.
Although this program assisted with the cost of the procedures and provided an incentive for
owners to have the procedures done, it did not ensure that the sterilizations would take place.
KWHS would prefer to ensure that every possible animal owned by the Humane Society is
sterilized before leaving its care. To make this happen, the Humane Society would like to
change the way they use the funds committed by the City. The end result is that there will be
no increase in the $30,000 of funding the City currently provides, however the overall goal of the
program will be significantly enhanced. As animals will be altered while owned by the Humane
Society, the Humane Society can also benefit from lower rates based on their volume than an
average pet owner would obtain. This enables the money contributed by the City to go further
allowing more animals to be sterilized with these funds while substantially decreasing the
administrative burden on the Humane Society. This also allows the Humane Society and the
City to lead by example in modelling responsible pet ownership.
Under the old program, the Humane Society contributed a minimum of 2/3 of the voucher costs
(i.e. $90,000 if the Cities' combined $45,000 contributions were utilized in full). The Humane
Society will continue to be required by our agreement to contribute a minimum of $90,000
annually to this program although we understand that its actual contribution will greatly exceed
this amount.
Retention and Impound Fees
The City requires KWHS to retain dogs they seize for a period of 5 days before they can
adopted out or otherwise disposed of. This 5 day period is longer than the standard initially
required by provincial legislation. In recognition of this, the City pays the KWHS an additional
annual fee that amounted to approximately $7,300 in 2011. Conversely, the KWHS pays the
City a percentage of the fees received as impound fees relating to dogs seized and impounded.
In 2011, this amount was $9,850.
During negotiations, both parties agreed that, from an administrative efficiency standpoint, both
of these items could be dispensed with. In the final analysis, there will be a small net benefit to
the KWHS of approximately $2,500 annually, which can be accommodated within the City's
9-6
current operating budget allocation. Both parties feel that reducing the administrative work
required to manage both payment structures makes sense.
Summary
It is staff's opinion that the draft contract represents a significant advancement in the
relationship with the KWHS. The contract provides incentives for KWHS to grow their programs
and advance their strategic directions, while minimizing the overall financial impact to the City's
tax base.
Going forward, the development of a "responsible pet ownership" strategy is a mutually agreed
upon goal. It is the intent of City and KWHS staff to make a presentation at a future Council
meeting, to outline the foundation of such a strategy, and test the guiding principles with
members of Council.
It should also be noted that, in the interest of fostering a meaningful and responsible
relationship, City and KWHS staff are exploring other avenues that may assist KWHS in
controlling costs, without any adverse impact to the City or the tax base. These discussions
include such things as Fleet vehicle costs. Any operating cost savings experienced by KWHS
can only serve to mitigate future negotiations relating to financial implications.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The aforementioned amendments support the Community Priority of Quality of Life, as
contained in the City's Strategic Plan.
FINANCIAL IMPLICATIONS:
The following table is a summary of the revenue and expenses of the City pursuant to the
proposed contracts.
2012 2013
Revenue
Dog Licensing (based on a
minimum guarantee) $207,263 $207,263
Expenses
Monthly Services $491,536 $505,053
Spay/Neuter Program $30,000 $30,000
Total Expenses $521,536 $535,053
Net Cost $314,273 $327,790
It is staff's opinion that the 2% increase in the base amount for 2012 can be accommodated
within the current operating budget allocation. The 2.75% increase for 2013, will be
incorporated into the 2013 operating budget process.
9-7
It should be noted that the revenue from the dog licensing program is a variable. The amount of
$207,263 is an amount guaranteed by KWHS, in exchange for a new revenue sharing structure
that provides them an incentive to grow the program. Depending on the success of their
initiatives, additional revenue could be realized, which would positively impact the City's budget
variance.
COMMUNITY ENGAGEMENT:
The development and execution of this contract is largely administrative in nature, which does
not require a significant community engagement strategy. Moving forward, the development of
initiatives for a responsible pet ownership strategy will involve an element of community and
stakeholder engagement.
ACKNOWLEDGED BY: Mike Selling, Interim Deputy CAO
9-8
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