TO: ADAM PIRRIE, CITY MANAGER
FROM: JEREMY SWAN, JEREMY SWAN
DATE: MARCH 25, 2025
Reviewed by:
City Manager: AP
SUBJECT:
Title
AUTHORIZATION TO EXTEND THE PROFESSIONAL SERVICES AGREEMENT WITH INLAND VALLEY HUMANE SOCIETY AND S.P.C.A. FOR ANIMAL CARE AND CONTROL SERVICES (FUNDING SOURCE: GENERAL FUND)
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SUMMARY
The City of Claremont contracts for animal care and control services with the Inland Valley Humane Society & S.P.C.A. (IVHS) and has done so for more than fifty years. IVHS is contracted to provide shelter master functions, licensing, and other animal care and control services provided for in Title 6 of the Claremont Municipal Code.
The first renewal term with IVHS expires on June 30, 2025, and requires a ninety-day notice of termination. If a ninety-day notice of termination is not given, the contract shall automatically renew for a successive two-year term. The cost for the first year of the renewal will increase by fifteen percent. The second year of the agreement will increase by the Consumer Price Index, not to exceed four percent. Revenue from animal licensing and other fees collected by IVHS on the City’s behalf is projected to be $200,000 over the next two years ($100,000 per year), which will offset the cost of the agreement.
In addition to considering contracting with IVHS for animal control services, staff has also explored the feasibility of signing on as a member of a new Joint Powers Authority (JPA) formed by the Cities of Ontario, Chino and Montclair. This JPA would provide animal control services to its member agencies beginning in July 2025. The merits of both of Claremont’s options for animal control services are discussed in this report.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Authorize the City Manager to extend the current agreement with the Inland Valley Humane Society & S.P.C.A. for an additional two years, effective July 1, 2025, in an amount not to exceed $466,416 annually, plus a Consumer Price Index (CPI) adjustment (not to exceed four percent) in 2026-2027; and
B. Appropriate $36,502 from the unassigned General Fund balance to fund the increased cost of service for 2025-26.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Authorize the City Manager to negotiate with the Animal Resources Center (JPA) for animal control services.
B. Reject the recommendation.
C. Delay the recommendation and request additional information.
FINANCIAL REVIEW
Approval of the proposed contract extension with IVHS would result in an annual net cost of $366,416 in 2025-26 for animal control services. The net cost is based on an expected licensing revenue offset of approximately $100,000 per year. The amended 2025-26 net contract amount represents an increase of approximately $36,502 over the 2025-26 budget for animal control services. The agreement provides for a CPI increase of up to four percent for 2026-27, which would result in a net cost of $385,073 during that fiscal year. This assumes a contract cost for 2026-27 of $485,073, offset by $100,000 in licensing revenue.
An appropriation of $36,502 from the unassigned General Fund balance to cover the increase for 2025-26 is required. Funding for the second year of the agreement will be included in the City’s operating budget for 2026-28.
The staff cost to prepare this report is estimated at $2,430 and is included in the operating budget of the Community Services Department.
ANALYSIS
Title 6 of the Claremont Municipal Code provides for the orderly regulation of dogs, cats, other common pets, domesticated animals, and wild animals when such animals are used for noncommercial uses. Title 6 also provides for the humane care and treatment of all animals, and the protection of the general public from unwarranted intrusions and nuisances caused by animals and/or their owners. The City has contracted with the Inland Valley Humane Society & S.P.C.A. for more than fifty years to provide shelter master functions, licensing, and other animal control services.
Currently, IVHS provides full-service animal care and control services to twelve communities and has one limited sheltering contract. In addition to Claremont, IVHS provides full-service contracted animal care and control services for the cities of Chino, Chino Hills, Covina, Diamond Bar, Glendora, La Verne, Montclair, Ontario, Pomona, San Dimas, and the unincorporated areas of San Bernardino County. Sheltering services are provided for the City of La Habra. IVHS services include pick-up of stray, injured, or deceased animals; enforcement of leash law violations; animal ambulance services; animal sheltering operation and maintenance; collection of all dog/kennel license and impounding fees; as well as Citywide canvassing to ensure that residents are adhering to the licensing requirements set forth by State Law and local ordinances. IVHS staff also provide low-cost vaccination and microchipping clinics and handle dog bite and animal cruelty investigations.
The Claremont Municipal Code requires that all dogs four months of age or older within the City be licensed. The City Council establishes the licensing fee through resolution and IVHS collects all licensing fees on behalf of the City, as well as late fees and fines. This revenue offsets the cost of the City's agreement with IVHS. To ensure that dogs in the City are properly vaccinated and licensed, IVHS conducts neighborhood canvassing throughout the community as needed. IVHS completed a canvassing during November 2024 with significantly higher licensing revenue during the months of December 2024 and January 2025 compared to previous years. The chart below summarizes Claremont's animal licensing revenue history, with an average five-year revenue of $103,006.
Licensing Revenue History
|
2020 |
2021 |
2022 |
2023 |
2024 |
5 yr Avg |
|
$89,626 |
$117,708 |
$108,041 |
$105,729 |
$93,926 |
$103,006 |
The twelve full-service agencies serviced by IVHS share the cost of the animal control portion of the IVHS budget based on population and services. Factors contributing to increases in costs for IVHS to provide animal control services include animal disposal, workers' compensation insurance, liability insurance premiums, and increased employee salary and benefit costs.
Over the last twelve months, there has been discussion about animal control services and the services provided by Inland Valley Humane Society among its member agencies. At the forefront of those discussions was the decision by IVHS not to renew their agreement with the City of Ontario, forcing Ontario to look at other options to provide animal control services to their community. As a result of the due diligence process, the Cities of Ontario, Chino and Montclair have formed a Joint Powers Authority (JPA) called the Animal Resources Center (ARC) of the Inland Empire, which will be providing services effective July 1, 2025.
The City’s current agreement with IVHS was entered into on July 1, 2021, for a two-year term with auto-renewals for additional two-year terms unless terminated. July 1, 2025, would usually be a “Pooled-Term” renewal. A “Pooled-Term” renewal is based on the pooled use adjustment, which evaluates the use of resources by each member agency in the overall pool as a means of distributing the cost of providing animal control services. With the departures of Ontario, Chino, and Montclair to the ARC, it is estimated that over fifty percent of the pooled use is leaving IVHS. IVHS notified the City that IVHS will not be implementing the pooled use recalculation at this time, since it would be cost-prohibitive for the cities they serve.
Since the implementation of the new agreement on July 1, 2021, the increases in service costs by IVHS have been as follows:
|
Term Dates: |
Contract Amount |
Increase Reason: |
|
July 2021 - June 2022 |
$360,000 |
Original Contract |
|
July 2022 - June 2023 |
$374,400 |
CPI - 6.6%; 4% max implemented |
|
July 2023 - June 2024 |
$391,864 |
Pooled Usage - 4.5% |
|
July 2024 - June 2025 |
$405,579 |
CPI - 3.5% |
|
July 2025 - June 2026 |
$466,416 (proposed) |
15% flat increase |
The IVHS Board of Directors is actively reviewing programs and services for the upcoming year with a commitment to improved levels of customer service, and faster response times. A new addition for IVHS is a new 37-foot mobile spay and neuter vehicle, “The Good Mobile.” The “Good Mobile” will offer low-cost veterinary services within the communities served by IVHS.
IVHS has increased their responsiveness and been more proactive in addressing customer service concerns in the community. IVHS continues to offer a variety of services through their Pomona offices and includes Claremont in the publicity for such events and services. An ongoing concern many member cities have expressed about IVHS is the lack of transparency in rate setting. Since IVHS is organized as a 501c3 non-profit, it is not subject to the same open meeting laws and requirements for transparency as the cities it serves. This has been a source of frustration for member agencies since they are unable to obtain information or participate in the rate setting process, or have a role in making decisions that could control the cost of services.
The alternative option available for animal control services is the Animal Resources Center of the Inland Empire (ARC). ARC is a new organization being formed under a Joint Power Agreement (JPA). The current founding members of ARC are the cities of Ontario, Chino and Montclair, and unincorporated areas of San Bernardino County. Other cities have been offered the opportunity to join the JPA, and some may choose to do so. Member agencies of ARC will have a seat on its Boad of Directors. They have a governance structure where each agency would have a vote on issues related to the JPA, including ARC’s budget and rate setting, along with the approval of new members. The City of Claremont has an opportunity to become an original member of ARC with an effective date of July 1, 2025.
ARC has acquired land in the City of Ontario where the future ARC offices and animal control services will be headquartered. With ARC, the percentage of ownership and usage will be public and included in the rate structure. The proposed percentage for Claremont could range from six to eight percent, depending on who ultimately joins the JPA. The costs of Claremont joining the JPA presented in this report are based on an eight percent ownership share, consistent with the current membership of ARC.
There are two cost components associated with City joining ARC as a member - annual operating costs and capital costs. The total annual operating costs for 2025-26, for all member agencies, are estimated at $5,000,000 after the revenue offset. The revenue received from licensing is part of the revenue overhead for the pool and not the individual member agency. Using the City’s proposed eight percent ownership share, the City’s allocation of annual operating costs for 2025-26 is estimated at $400,000.
In addition to the annual operating costs, for the first twelve years of membership, each agency would be responsible for the capital cost of acquiring the necessary land, facility and equipment to support the ARC’s operations. The capital costs will be amortized over a twelve-year period; however, the elements of the capital costs will be charged at different times. The total capital costs, including the acquisition of land and the construction of a new facility, are estimated at $45 million. The City would be responsible for eight percent, or approximately $3.6 million. This $3.6 million would be amortized over twelve years.
For 2025-26, the capital cost allocated to the City would only include land acquisition, and facility design services at an estimated $92,000. The capital cost would be the same for fiscal year 2026-27, with an increase in 2027-28 for the amortization of the City’s share of construction costs for the new animal control facility. It is estimated that this increase would amount to an additional $249,600, with that increase remaining in place for a twelve-year period.
ARC has provided an estimate of construction costs; however, the actual costs would depend on material and labor costs when the project is bid, which could increase from current estimates, resulting in each member agency responsible for those increases. As ARC has not received bids for construction, the actual constructions costs are unknown at this time.
If Claremont should join ARC, Claremont would be responsible for an anticipated eight percent share of the total cost, or $492,000 in 2025-26. That amount is subject to change if additional agencies join ARC.
The tables below show the proposed cost of services under both IVHS and ARC for the next two fiscal years:
|
|
IVHS |
ARC (8% share) |
|
Contract cost: 2025-26 |
$466,416 |
$400,000 |
|
Less: Fee Revenue |
$100,000 |
- |
|
Plus: Capital Costs |
- |
$92,000 |
|
Total Cost |
$366,416 |
$492,000 |
|
Additional Costs |
- |
$125,584 |
|
|
IVHS |
ARC (8% share) |
|
Contract cost: 2026-27 (4% CPI assumption) |
$485,072 |
$400,000 |
|
Less: Fee Revenue |
$100,000 |
- |
|
Plus: Capital Costs |
- |
$92,000 |
|
Total Cost |
$385,072 |
$492,000 |
|
Additional Costs |
- |
$106,928 |
As the data in the tables demonstrate, there is a significant additional cost of participating as a member of ARC for animal control services. That additional cost amounts to $125,584 in 2025-26 and $106,928 in 2026-27. The additional costs would increase in subsequent years, as final construction costs for the ARC’s facility are amortized for member agencies. Capital costs would increase to an estimated $341,600 for the remaining ten years of the amortization period.
IVHS is an established animal services provider that has provided animal control services to the City for over fifty years. IVHS is not a public agency, subject to open meeting laws and transparency requirements, therefore the City has a limited ability to influence or participate in establishing policies related to services, setting rates for the agencies to which it provides services or approving operating budgets. IVHS has taken steps to address service concerns over the last year, and the City has received fewer complaints regarding IVHS’s service than it previously did. IVHS has also partnered with the City on events over the last year, participating in the National Night Out event in August 2024 and presenting at the City’s Community Wildlife Meeting in September 2024. IVHS has also indicated that they are reviewing programs and services to control future costs for the agencies it serves.
In contrast to IVHS, the City’s participation as a member of ARC would provide an opportunity for the City to have representation and input on their board and be able to provide guidance and direction on rate setting and cost containment. However, the City’s participation in the JPA would come with significant ongoing operating and capital costs.
Given the significant difference in the cost of animal control services between IVHS and the newly-form Animal Resources Center, staff recommends extending the current agreement with the Inland Valley Humane Society & S.P.C.A. for an additional two years, effective July 1, 2025. It would also be prudent for the City to monitor the operations of ARC, and should the opportunity to join the JPA present itself at a future date to realize cost savings relative to the City’s contract with IVHS, that option could be explored.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, General Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by:
Jeremy Swan
Community Services Director