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HomeMy WebLinkAboutCAO 13-11 Cif Report To Executive Committee PICKERING Report Number: CAO 13-11 Date: September 12, 2011 187 From: Debbie Shields City Clerk Subject: Animal Sheltering Services - File: S3010-007-11 i Recommendation: 1. That Report CAO 13-11 be received; 2. That the current lease and servicing agreement with The Dog Pad Inc. which expires on December 31, 2011, located at 15 Reesor Road not be renewed. 3. That Council provide pre 2012 Capital Budget approval for the following: a) that the Mayor and Clerk be authorized to enter into a 5 year lease, in a form acceptable to the Chief Administrative Officer, the Director of Corporate Services & Treasurer and the City Solicitor, with Transport Canada for the property located at 1688 Highway No..7; and b) leasehold improvements, furniture and fixtures in the estimated amount of $100,000. 4. That Council authorize the Director, Corporate Services &.Treasurer to finance the project as follows: a) the estimated project cost for leasehold improvements, furniture, fixtures, and equipment through an internal loan not to exceed $100,000 at a term not to exceed five years; b) the internal loan be undertaken from the Development Charges Reserve Funds at a rate of 2.5%; c) the loan be repaid through an annual savings in lease and service costs allocated in the current budget for Animal Services in the estimated amount including financing cost of $21,500 annually until the loan is repaid; and d) the Treasurer be authorized to make any changes, adjustments, and revisions to the amount, term, and conditions or take any actions necessary in order to effect the foregoing; Report CAO 13-11 September 12, 2011 Subject: Animal Sheltering Services Page 2 5. That the appropriate officials of the City of Pickering be given the authority to give effect thereto. Executive Summary: Since 2007, the animal shelter has been based at a boarding kennel located at 15 Reesor Road in Toronto. Contract negotiations began earlier this year with the Dog Pad Inc., as the current contract is set to expire on December 31, 2011. On July 1, 2011, the City was advised that the Dog Pad Inc. was requesting a 50% increase in lease and service payments to extend the lease. Under the provisions of the current agreement, should the City not agree to the 50% increase, the Dog Pad Inc. has given the City notice to vacate the premises on or before December 31, 2011. A 50% increase would mean the annual lease and service cost of $54,000 would increase to $81,000 yearly for the use of their facility. The City recently became aware of the potential to lease property located at 1688 Highway No. 7 in Brougham, formerly known as Nonna's Cafe. Upon further investigation, it has been determined that this site would be an excellent opportunity for the City to run and operate its own animal shelter in Pickering. This site would suffice for the next five years however; the long term plan is to have a permanent animal shelter built in conjunction with a new Operations Centre. The market rate for the above property was listed at $1500 monthly (net), however Transport Canada have agreed to lower this to $1000 monthly (net) subsequent to discussions with senior staff. The operating costs for the City to run its own animal shelter will be covered under Animal Services current operating budget (account 2399) and are estimated to have a net savings of $30,000 yearly. Council approval is required to enter into the lease and fund leasehold improvements, furniture, and fixtures. All funds will be repaid out of the current budgeted expenditure account for animal services. Financial Implications: As the current arrangement with The Dog Pad Inc. ends on December 31, 2011, the recommendations require approval prior to Council considering the 2012 Budgets. The property at 1688 Highway No. 7 will require work to retrofit the facility to meet our animal sheltering needs. In order to ensure the new facility is ready to shelter animals by January 1, 2012, the necessary work must begin immediately. The chart below compares yearly operating costs based on our current contract, proposed contract and to operate a city run facility. CORP0227-07/01 revised Report CAO 13-11 September 12, 2011 Subject: Animal Sheltering Services Page 3 109 Current Cost Proposed Cost at City Run Facility Cost at at the Dog the Dog Pad Brougham Site Pad Lease Costs 2,000/month 3,000/month $1,000/month (negotiated down from $1500) Service Costs $2,500/month $3750/month $0- included in current (includes staff and salaries maintenance Utilities Included with n/a Hydro: $5,000 lease costs Oil: $4,000 Water: $600 Contin enc n/a n/a $2,400 Total Yearly Costs $54,000 $81,000 $24,000 While the exact nature and cost of leasehold improvements, furniture, fixtures and equipment is to be determined, it is felt that a provision of $100,000 should be sufficient. This expenditure will be financed by an internal loan to be repaid with the annual savings in lease costs over the next five years. Staff's best estimates do not indicate an increase in budget for this facility and operation. As previously indicated, by operating our own animal shelter the City will be saving $30,000 annually over the current cost. Based on the proposed contract put forward by The Dog Pad Inc., the City would have a cost saving of $57,000 over the renewal lease cost. Sustainability Implications: We are committed to financial integrity, accountability and fiscal sustainability. This new lease arrangement will bring all shelter management directly under the city's control as well as being more cost efficient and saving money. The hamlet of Brougham is only 10km away from the core of the City and is more accessible than our current facility, located in Scarborough. Having a facility located in Pickering will ultimately reduce the distance of travel that staff are required to drive, therefore, reducing the amount of gas emissions entering into the environment. Operating our own facility will allow us to expand our community engagement initiatives, and further develop education and volunteer opportunities. i CORP0227-07/01 revised Report CAO 13-11 September 12, 2011 Subject: Animal Sheltering Services Page 4 Background: The City assumed the responsibility of Animal Services on January 1, 2006 upon termination of a long term agreement with the Town of Whitby. Since that time, all functions of Animal Services are handled in-house with the exception of shelter services. On May 14, 2007, Resolution 100/07 for Report CS 19-07 was passed by Council recommending that the City enter into a public-private agreement with Country Boarding and Training Kennels located in Toronto for a five year term. The agreement stated that Country Kennels would provide the feed, care and housing for all Pickering Animals, while City staff would be responsible to staff the facility each evening, for residents to reclaim or adopt animals. This agreement started in July of 2007. In October of 2009, Country Kennels was sold and purchased by a new owner called The Dog Pad Inc. The current agreement states that the Dog Pad Inc. will provide care and housing for all Pickering Animals, while City staff are still responsible to staff the . facility each evening for residents to reclaim or adopt animals. In addition, the City is now responsible for providing all food and litter required for our animals. This public-private agreement was put into place while the City reviewed a long term plan to build an animal shelter in conjunction with a new Operations Centre. The current agreement has allowed staff to better understand the day to day operations of an animal shelter. Although this agreement has worked for the past 5 years, staff feel that at this time in order to provide the most cost efficient and the highest quality of service to our residents, we must have direct control of all aspects of our animal shelter service. Short Term Sheltering Plan Staff are recommending that the City enter into a 5 year lease with Transport Canada to lease the property located at 1688 Highway No. 7 in Brougham, formerly known as Nonna's Cafe. Further to the financial cost savings, staff have identified many other advantages associated with the City operating its own animal shelter. Advantages of taking full ownership of animal sheltering include the following; • shelter is in Pickering • immediate accountability as the service provider, and the ability to address problems immediately • increase consistency with standards of Animal Care • increase consistency with cleaning practices and care given to animals • potential to increase sense of pride by City Staff and residents • potential to increase community engagement • free up office space at City Hall CORP0227-07/01 revised Report CAO 13-11 September'12, 2011 Subject: Animal Sheltering Services Page 5 191 In order to fulfill legislative requirements, certain leasehold improvements will have to be undertaken. Jurecka & Associates has been hired to conduct a preliminary assessment of the property and to determine what leasehold improvements are necessary. The chart below identifies the one-time leasehold improvements that will be required in order to retrofit the building to meet legislative requirements to operate an animal shelter. Infrastructure upgrades • insulating and treating the exterior walls and ceilings (including air & vapour barrier and interior finish) • extension of HVAC conduits and venting throughout facility • additional lighting where existing is insufficient • additional electrical distribution where insufficient • water supply with floor drains to rear east room • paint throughout Site modifications to meet accessibility • install concrete ramp, handrails, requirements landing & steps to front entrance of (longer-term) building • retrofit washroom to meet legislative requirements Other Site modifications . fence surrounding perimeter of property • Install security system Furniture & Fixtures, and Equipment . washer/dryer These items are a one-time capital cost and will be re-located to another facility when the • portable dog runs time comes. • cat cages • power washer CORP0227-07/01 revised ,Report CAO 13-11 September 12, 2011 Subject: Animal Sheltering Services Page 6 192 Animal Housing Requirements Housing is being recommended for approximately 35 cats, and an additional capacity for 4 cats in quarantine and 4 cats in isolation facilities Housing for 10 dogs is being recommended including an.area to quarantine for rabies observation and/or isolation due to disease. Sheltering and Administrative Staff Requirements The Supervisor of Animal Services will oversee the day to day operation of the shelter and field staff and assist Officers in all areas when needed. All animal services staff would work out of the facility and would assist in the day to day sheltering activities. The current 2012 staffing complement for Animal Services will be able to successfully run the animal shelter. Staffing requirements will be reviewed on an annual basis and depending on service needs; future staffing will be budgeted accordingly. Operating our own animal shelter will give us the opportunity to further develop our volunteer program and have an opportunity to further engage with our community. Currently, our volunteer program consists of 35 registered volunteers. Unfortunately, without our own facility our volunteers are only able to assist us at our satellite adoption facility at PetSmart, limiting the numbers of volunteers required. Operating our own animal shelter will allow us to expand our volunteer program into the shelter. .Long Term Sheltering Plan The City of Pickering is currently undertaking an Environmental Assessment to determine an appropriate location to build a new Operations Centre. As part of that assessment, the consultants have been asked to evaluate the potential to have an Animal Shelter located on the same site. The long term plan of Animal Services is to have an animal shelter built on the same site as the Operations Centre. Depending on the location and size of land allocated for the animal shelter, we will investigate the potential to partner with another municipality or a local veterinarian. Summary Based on the information provided in this report, it is recommended that the City proceed to enter into a 5-year lease with Transport Canada to operate our own animal sheltering facility. Attachments: none CORP0227-07/01 revised Report CAO 13-11 September 12, 2011 Subject: Animal Sheltering Services Page 7 193 Prepared By: Approved/Endorsed By: 6AIam Q W i2s J Lindsey Narraway Debbie Shields Supervisor, Animal S rvices City Clerk Gil Paterson Director, Corporate Services & Treasurer Copy: Chief Administrative Officer Recommended for the consideration of Pickering Cit Counci ) Am - Z4,2-011 Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07/01 revised