While it seems like debate is just beginning about the Animal Shelter of Pell City, Inc.’s (ASPCI’s) future, it isn’t. In fact, it’s almost run its course.

Within days, residents of St. Clair County will know definitively if they’ll continue to be supported by the nonprofit organization or if instead they’ll have impoundment service provided through a new partnership. Signs point currently point to the latter, as a contingency plan could become active as early as next week.

Months ago, in response to unwavering requests for increased funding, the City of Pell City and the St. Clair County Commission moved into discussions about a shared future on the issue that doesn’t include the ASPCI. According to Pell City City Manager Brian Muenger, if an agreement isn’t reached between the Commission and ASPCI this week, On Monday, July 27 he said he intends to propose the City terminate its contract and begin the transition to take over services.

UPDATE: On July 23, Muenger released a tentative Pell City city Council agenda that includes termination of the ASPCI contract.

In addition, Muenger said he has already discussed the issue with other St. Clair County municipalities and Lincoln, which also has a contract with the shelter, and he said all have indicated they would be willing to move their contracts or appropriations to Pell City’s new operation.

These actions will likely end ASPCI’s operation, as losing both contracts will push it into insolvency. It would lose the building it operates from, which is owned by the City, as well as the entirety of its government funding – approximately $150,000 annually.

On one hand, the dissolution of the ASPCI appears justified. Against a contract that can’t effectively be negotiated, the organization requested additional goodwill funding from the County in light of its recent shortfalls. ASPCI indicated it would cease services if that funding wasn’t received. The Commission’s refusal to increase its payout is both legal and responsible regarding its taxpayers.

On the other, the ASPCI presents a compelling case for continuing its operation. While not legal in footing, the organization does appear to have the public’s interest at heart and has made great strides in reducing the unwanted animal population in the county.

But there is no indication negotiations will continue. If the City is going to run an impoundment operation, according to Alabama law it must be active by the beginning of the next fiscal year, which opens Oct. 1. Muenger said he’s already designed the operation. Now, all that remains is a 60-day opt-out period required under both the City and County contracts.

It appears likely things are going to change.

“I do have a deep appreciation of what they’ve done over the years there, and I understand it is not something that is simple in any way,” Muenger said of ASPCI. “This is not a decision the City takes lightly, but at this point, barring some breakthrough in negotiations, I see that we are most likely going to be heading down this road.”

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MISSION

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From its facility near the St. Clair County airport in Pell City, ASPCI operates what amounts to two nonprofit organizations, though the fiscal reporting doesn’t appear as such. First, through contracted funding and contributions from local municipalities, the organization provides impoundment services.

These services are specific by their contracts. ASPCI is required with government funding provided to collect, house and care for animals for a period of seven days, following which time they are to dispose of the animals in a “humane and lawful manner.”

But for more than a third of the animals, that’s not the case.

ASPCI, through grants, donations and fundraising claims it also offers residents of the county an array of services beyond impoundment. It runs adoption, rescue and foster programs, vaccinates, microchips, provides low-cost spay and neuter services and distributes food to pet parents. All of this, it reports, is done without using monies from its impoundment contracts.

According to a release from ASPCI president Barbara Wallace, the facility’s live-release rate is up 11 percent from last year. June 2015 year-to-date versus the same period in 2014 is 34 percent and 23 percent respectively. Since 2000, ASPCI has re-homed more than 13,000 animals, including 1,223 last year. That’s more than three each day in 2014.

Other data provided by ASPCI Vice-President Dave Hart shows that ASPCI has the lowest government cost per animal impounded when compared to operations in Gadsden, Talladega and Shelby County – at least $15 less.

According to his research, Shelby County Humane Society receives $395,000 annually in government funding, and last year it impounded more than 5,000 animals. At that rate, its cost per animal is approximately $79. ASPCI receives less than half that funding – approximately $150,000 each year – and impounded more than 4,500 animals in 2014.

These figures have not been confirmed with the other organizations, but that amounts to $34 per animal at ASPCI according to Hart’s numbers.

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NEGOTIATION

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Alabama law requires that counties and cities with populations over 5,000 either have their own pounds and impoundment officers or pay someone else to do it. The County has it’s own animal control officer, but it has a legal contract with ASPCI to provide impoundment.

The law states that governments that don’t provide their own services are required to contribute their “pro rata” share to the organization that it contracts with for the service. However, this is not the case in St. Clair County, as the agreement is a flat fee.

“Based on the 2010 Census, the unincorporated population of St. Clair County is 36,948,” the 2013 contract between the Commission and ASPCI reads. “However, the contract amount of $80,000 annually is not based on a per-capita amount; rather a lump sum amount agreed upon by both parties…”

Under this clause, there is no justification for ASPCI to request an increase in funding from the County. However, for the past two years — even before its board members signed the agreement — that’s exactly what they said they’ve been doing.

Hart said requests for funding increases began in July 2013, but the contract for a flat fee of $80,000 was signed in October of the same year. The Commission added $1,000 in 2014.

In December 2014, ASPCI sent a letter to the Commission requesting a $79,000 increase in funding to $160,000 – a 98 percent raise.

“ASPCI cannot continue to run at this deficit. Without this immediate increase in funding, ASPCI will no longer be able to provide impoundment services to St. Clair County by the end of 2015,” the request reads.

County Attorney James Hill continued communication with ASPCI through July 2015, during which time no agreement was reached. With the contract in place, there is no legal cause for the Commission to increase its payout – especially, according to Hill, to double it.

“If you told me this was based on cost of living or inflation or food price increases, I’d probably understand,” Hill said. “But I’ve had a dog during this time, and the cost of food has definitely not jumped 100 percent.”

Since that letter in December, Hill provided correspondence that showed ASPCI has provided at least two adjustments to the request. A figure of $147,000 was recently presented. Including the County’s regular contribution to ASPCI’s low-cost spay and neuter program of $12,000, it represents a $53,000 increase rather than the original $79,000.

Hill said however that at this juncture, if ASPCI were to approach the County with a request for level funding, it would be difficult to consider.

“Part of my frustration has been with their moving target,” he said.

Vice-President Hart said the ASPCI based the $147,000 request on a per capita figure. Not one of population, but rather of animal collection.

Hill reported the county’s animal control officer delivered about 800 animals to the ASPCI in 2014, and that figure has been decreasing annually. Conversely, Hart said that taking into account animals surrendered to the shelter from communities covered under St. Clair County’s legal requirements – all unincorporated areas and every municipality in the County save Pell City and Moody – ASPCI actually impounded 3,230 animals in the County’s jurisdiction in 2014.

“That breaks down to about 70 percent of all the animals we took in last year,” Hart said.

Legally, according to the contract, the County is under no obligation to pay a pro rata share. But, by the numbers, 70 percent of the ASPCI’s operation costs, according to its provided figures, breaks down to $147,000.

“I understand the math behind it, but I certainly understand why it’s a tough pill to swallow for the Commission,” Muenger said.

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QUESTIONS

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ASPCI’s provided figures though are a primary point of debate. As previously stated, the shelter operates both impoundment services under contract as well as services it’s not required to provide under the law. These include everything except the collection, seven-day hold and disposal.

The shelter’s impoundment operation figure of $211,000 per year doesn’t appear to divide overhead expenditures between the operations. Hill said, for example, he was under the impression that the entire cost of power and water fell under impoundment totals.

“At this point, I don’t have a breakdown I’m comfortable with,” he said.

ASPCI’s 2013 tax filing shows that the total cost of operation was approximately $511,000 and total revenue was $474,000 – a $38,000 loss. In the same year, it took in $147,000 from local governments. It also spent $188,000 on salaries for its employees.

In addition, Muenger’s own research of ASPCI’s 1099s over the last five years shows deficit operation since 2012. In 2014, he reported that the shelter took in $166,000 in government contributions and spent $210,000 on salaries, showing the strong reliance on donations and grants.

“Why is the operation not scalable?” Muenger said. “If have a tough budget here and I say, ‘Public works you need to cut 7 percent out of your budget,’ there’s an attempt to do that.”

The short answer, Hart said, is that the organization believes it’s made too much progress in controlling the county’s animal population and improving the shelter’s live-release rate to reverse course.

“It’s not a gray area,” Hart said. “Our options are to euthanize more animals or go completely bankrupt.”

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NEXT STEPS

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The contingency plan for Pell City to run impoundment services in the county, Muenger said, would seek to provide many of the same live-release services currently offered by ASPCI including adoption and rescue. However, he cautioned that some services would go away, namely the shelter’s program to subsidize spay and neuter surgeries known as SNAP. This program cost ASPCI approximately $45,000 in 2014 and more than double that in years past.

The plan’s influence on live-release rate is unknown, but the City would look to reduce expenditures and that has the potential to increase the kill rate. However, Muenger dispelled rumors that a government takeover would mean a complete lack of effort on the front.

“To the highest degree possible, the City is going to try to emulate ASPCI’s services as it relates to outreach and adoption efforts just as a matter of good shelter operation,” he said. “We will be reaching out to partners in different rescue agencies, and I’d like to develop network of fosters.”

The likely picture of the new operation, he said, would include a reduction in staff of at least two-full time positions, but the City would look to move certain personnel from ASPCI into the new operation.

The City would also seek new contracts and appropriations from area municipalities. With multiple municipalities likely to pass the 5,000 threshold in the 2020 Census – namely Margaret, Argo and Springville – all will be looking toward stable operation of impoundment services.

Muenger said he hoped for an easy transition on all fronts. 

• The Animal Shelter of Pell City, Inc. has declared it must have more funding to continue operations.

• ASPCI’s contract with St. Clair County is set at a flat fee with no precedent for increases.

• If no agreement is reached between the County and ASPCI, Pell City will also terminate its contract.

• If this occurs, ASPCI would lose its building and most, if not all, its government funding.

• The City and County have negotiated a plan for Pell City to provide services if no agreement is reached, and that plan could be set in motion as early as Monday, July 27.

“I do have a deep appreciation of what [ASPCI has] done over the years there, and I understand it is not something that is simple in any way. This is not a decision the City takes lightly, but at this point, barring some breakthrough in negotiations, I see that we are most likely going to be heading down this road.”