Chino Hills barks at Humane Society | New
Chino Hills board members were not happy to learn that its annual contract with the Inland Valley Humane Society (IVHS) could potentially increase by about $ 300,000 per year.
The council voted 3-2 on Tuesday to extend the contract by a month to allow ongoing negotiations between city staff and IVHS since January to continue.
Councilors Ray Marquez and Cynthia Moran wanted a two-month extension to better understand the large increase, but were rejected by Mayor Johsz and Councilors Peter Rogers and Art Bennett.
IVHS provides animal control services to the city. The contract amount for the 2020-2021 fiscal year was $ 200,563.
(The gross contract is $ 502,564 with guaranteed income making the net cost $ 200,563.)
Nikole Bresciani, president and CEO of IVHS, explained that the Humane Society no longer shares revenue with the cities it serves, as revenue has declined as more animals are spayed and neutered.
“The unintended consequences of sterilization and sterilization mean reduced license fees,” Ms. Bresciani said. “Cities have been warned against income caps in recent years. “
She was referring to member cities that have contracts with IVHS, including Chino, Ontario, Pomona, Diamond Bar and others.
City Councilor Marquez said his main concern was that the city did not know how much revenue the city was bringing to IVHS.
He said he was not happy with the cost model whereby the city pays the contract and IVHS keeps the revenue.
Mr Marquez said IVHS did not want to account to the city for the amount of money Chino Hills generates in revenue. “They are unwilling to show us the information and that is not fair,” he said.
Mr Marquez said he was unaware that city staff and IVHS have been negotiating since January. “It should have been put on the agenda earlier. I wish we had more data and more information to move forward, ”he said.
City Councilor Art Bennett said Thursday he was struggling to accept that the city has no control over the fixed costs which are increasing by $ 300,000 a year. “I am puzzled that we don’t seem to find an alternative to a huge increase like this,” he said.
Mr. Marquez asked: “Who else is there for our city? We have an obligation to provide the service at the lowest possible cost.
IVHS offers two options to all of its member cities for contract costs: a gross cost model and a net cost model.
Under the gross cost model, Chino Hills would be billed for the monthly gross cost less any license revenue received on behalf of the city.
The gross cost would be $ 680,000, but the city would not be guaranteed a predetermined amount of income, so the cost to the general fund could be higher in this model, according to the city’s deputy city manager Rod. Hill.
In the net cost model, the city would be billed for the net cost of the contract with a “guaranteed” income amount.
IVHS “guaranteed” an income of $ 175,000 for the city, bringing the net cost to $ 505,000. Any income collected on behalf of the city in excess of $ 175,000 would be shared 50-50 with IVHS.
The excess portion of the IVHS would be placed in an escrow account to be used for spaying, neutering or microchipping dogs and cats for residents who cannot afford the services.
Ms Bresciani said the city is due to do a solicitation in July, where IVHS is going door-to-door to enforce licenses.
She said that over a year of exploration, the revenue combined with licensing and impoundment generates $ 425,000 in Chino Hills.
The gross contract amount of $ 680,000 would become a net cost of $ 250,000 in the exploration year, she said.
Ms Bresciani said when income stabilizes as it has for several years, IVHS cannot provide services. “In all these years it has never been addressed,” she said.
City Councilor Cynthia Moran said IVHS does a great job, but the money doesn’t stay in Chino Hills. “We are paying for the whole business model and subsidizing other cities,” she said.
IVHS began presenting the cost model changes to Chino in February, spokeswoman Vivian Castro said.
The city approved the gross cost agreement template at the June 15 council meeting in its annual contract amendment / renewal report.
The model takes the gross cost of $ 880,000 to maintain Chino and applies a guaranteed income of $ 320,000, leaving Chino with a net total of $ 560,000, she said.
If IVHS doesn’t get $ 320,000 in revenue, the agency will make up that difference, Ms. Castro said.
If the income exceeds $ 320,000, the income is split 50-50 and the amount is deposited into an escrow account for animal medical procedures for low income families.
In addition, the city will now have a dedicated Humane Society agent who will serve Chino from 7:30 am to 9 pm, ”said Ms. Castro.
Ms Bresciani said the agent is an increased advantage for the size of the city of Chino. The contract is still based on shared expenses, she added.