The Capital Humane Society, which has provided shelter services to Lincoln for nearly half a century, nearly tripled the price it wants to charge for its services, prompting city officials to sign just a one-year contract and consider other options.
Those options, city officials say, include continued negotiations with the humane society, a nonprofit that has contracted with the city to provide shelter services for stray animals picked up by the city’s animal control officers since 1976.
The latest eight-year contract — which cost the city $571,829 annually — expired Aug. 31. In December, the humane society submitted a proposal for nearly $1.5 million the first year and increasing roughly 4% each year so the city would pay $1.94 million in the final year, if it extended the initial four-year contract as it did previously.
The humane society was the only organization to respond to the city’s request for proposals for shelter services, city officials said.
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“The city worked for many months attempting to negotiate a more reasonable agreement that maintains our long-standing partnership, ensures the humane treatment of stray animals, and aligns with the best fiscal and public health interests of Lincoln taxpayers,†Chris Triesbsch, the city’s chief communications officer, said in an emailed response to questions.
The City Council was scheduled to consider the contract last month, but city officials pulled it from the agenda to continue negotiations.
The city has since negotiated a reduction in cost of the one-year contract to $1.43 million, which officials said it signed to maintain services with the flexibility “for continued community discussions that could better balance the cost and care for lost and stray animals in our community.â€Â
Those include “all options,†not just trying to reach an agreement with the humane society, Triesbsch said.
The one-year contract does not require City Council approval.
But City Council members were briefed on the proposal in August, and four council members contacted for this story said they think the city should explore other options, but continue negotiations with the humane society.
Council member Sändra Washington said before the city enters into a long-term contract that’s significantly higher than the old one, there should be community conversations to learn whether citizens believe that’s a good use of city money.
Such an increase could result in higher pet licensing fees, for example, and it raises questions about whether just pet owners should pay the increased cost, or if there is a larger public health interest that means everyone should contribute, she said.
Council member James Michael Bowers said it was disappointing that humane society officials didn’t seem willing to have a “sober, realistic†conversation about how they can continue the partnership.
“I hope this is just a bump in the road that can be smoothed out,†he said. “Making sure animals are taken care of in this city will always come first and I’m not going to play games with other organizations about it.â€
Capital Humane Society Director Matt Madcharo said the proposed increase is necessary to cover the organization's expenses and provide care to the animals. The organization has been relying on fundraising dollars to cover the gap.
“At the end of the day we felt that our donor support shouldn’t be going to subsidize the contract,†he said.
The increase is based on three factors: the expenses related to the organization’s adoption center, which opened in 2013 and were not included in the previous bid; increases in labor and supply costs; and the increase in the number of animals either reunited with their owners, adopted or placed with another agency that will find them a home.
Today, that placement rate is 87% compared to 41% in 2010, before the Pieloch Adoption Center opened at 6500 S. 70th St. Madcharo said that's a point of pride for the humane society.
“Basically the long story short is ... it requires more money and resources to find live outcomes for pets. It’s a lot cheaper if you’re just euthanizing.â€
In its initial proposal the humane society suggested a couple of changes to the contract that contribute to the higher cost, including having the city pay not only for animals delivered to the shelter by animal control officers, but for any lost or stray animals found within the city limits and delivered to the shelter by citizens.
The humane society also wanted the city to pay for hospitalization costs of animals brought to the shelter until the humane society took over ownership, typically three days if an animal isn’t reclaimed by its owner. The city wanted the humane society to pay all those costs.
The humane society also has had a contract with Lancaster County since 2009 where compensation is based on a monthly billing fee structure, according to the humane society’s proposal. Madcharo said they also increased what they charge the county, but the county brings considerably fewer pets to the shelter.
The humane society serves more than 6,000 animals a year in its shelter.
In determining its proposal for a new contract, the humane society included all strays brought to the shelter by both citizens and animal control officers.
Those 2,976 animals brought to the shelter between Dec. 30, 2022, and Nov. 30, 2023, cost $490,961 — or 46% of the organization’s total expenses during that time, according to the organization’s proposal.
To come up with the initial $1.49 million proposal, the humane society used that number, added $828,500 in payroll expenses (for 23 employees needed to handle those animals), $62,000 in payroll taxes and a 3% adjustment for 2024, and added an additional 5% profit. The profit, Madcharo said, is not intended to make money off the city but for increased costs for maintenance and repair of equipment.
In its request for proposals, the city included only the 1,744 stray animal control officers brought to the shelter from Sept. 1, 2022, to Aug. 31, 2023. The monthly cost under the old contract was $47,652 per month.
The $1.43 million, one-year contract signed by the city does include strays brought by citizens but does not include the 5% increase, nor will the city cover hospitalization costs.
Among the services provided by the humane society in addition to the shelter are the adoption center; Stransky Veterinary Center, 5505 O St., which opened in March and offers low-cost veterinary services; and the Pawsitive Impact Project, which provides assistance to people struggling to feed and care for their pets.
Madcharo said he is confident the city and humane society can reach an agreement on a new long-term contract.
Much of the conversation has involved educating city officials about the work the shelter does, he said.
“I think we’ve made a lot of progress,†he said. “Our stance is we want to continue to work toward finding that long-term solution and I think city officials do too,†he said. “We had a good relationship for a long time ... we’ll just have to keep working toward it.â€