The development of an on-site spay/neuter facility at the New Hanover County Animal Control Services shelter.

Sterilization Protects The development of an on-site spay/neuter facility at the New Hanover County Animal Control Services shelter. Jean P. McNeil, DVM Daisy Brown David Howard, MPH Barbara McClure, MBA, CPA G. Robert Weedon, DVM, North Carolina

Table of Contents Executive Summary 3 Company Description 5 Industry Analysis & Trends 7 Target Market 9 Competition 11 Strategic Position 15 Risk Assessment & Regulatory Issues 17 Marketing Plan & Sales Strategy 19 Operations 21 Technology Plan 23 Management & Organization 24 Community Involvement & Social Responsibility 26 Development Plan 28 Financial Information 30 Appendices 34 NC-2 Business Plan Management Academy for Public Health Page 2 of 51

EXECUTIVE SUMMARY The Concept Pet overpopulation, irresponsible breeding, and the resultant rabies exposure risk are public health concerns in every area of the United States. According to Dr. Alan Beck in his book Between Pets and People, Recent estimates indicate that between 4 and 6 million animals were given up to shelters annually in the United States. We have tended to solve the problem by euthanasia of unwanted, sick, and stray animals. Our plan is to offer a proactive solution to address these problems by constructing and operating an on-site spay/neuter facility with an adoption play area. Reduction in pet overpopulation is the ultimate goal. The additions afford a means of effectively targeting this problem by increasing ease of adoptions, maintaining the 100% sterilization compliance rate, and better utilizing staff in the field and office. Community benefits, positive partnering with county residents, and increased public education and awareness are a bonus to the plan. Background In recent years, (NHCACS) faced the challenge of achieving 100% compliance (from 50%) for sterilization of adopted animals. This was accomplished by transporting adopted animals to area veterinary hospitals by NHCACS staff for surgery after the adoption transaction. Current county budget constraints and staffing cuts have depleted NHCACS resources, making continued transport a burden to maintaining essential operations. The only viable alternative, which is more cost effective, is to perform surgeries on adoptable animals prior to adoption. The spay/neuter facility addition will provide the means to accomplish this goal. The Company The primary mandate of NHCACS is to protect the community from the threat of rabies virus exposure. In 1989, the state of North Carolina was free of diagnosed rabies cases. One decade later, the state has few rabies-free counties (see Appendix 1-3). There have been a total of 61 positive animals verified in since March 26, 1996. Pet overpopulation, stray animals, and unethical breeding practices lead to increased rabies exposure risk. Reducing the number of unwanted pets decreases the number of strays, thereby reducing potential rabies exposure. NHCACS has the means to provide the county with a cost-effective and customer-friendly solution to pet overpopulation in our community. NC-2 Business Plan Management Academy for Public Health Page 3 of 51

The Market Adopters and potential adopters at NHCACS are the primary end-user target market for Phase I of our project. Phase II involves targeting community pet owners, who for many reasons do not have their pets surgically altered. Competitive Position NHCACS operates the largest (of approximately a dozen) animal adoption agencies in the surrounding region. This allows us to offer the widest range of pets suitable for adoption. Additionally, our modern technology, and physical facility offer the best possible care for shelter animals. Operations Current staff at the shelter, supplemented by local volunteers, will perform the necessary functions to operate the facility. Veterinary supervision and scheduling of surgical procedures and staff will be necessary. We anticipate that this can be accomplished on a volunteer basis. The Future Phase I of the project includes neutering of all adoptable animals at the shelter. Phase II expansion includes low cost spay/neuter of pets owned by county residents. Other services, such as educational opportunities, classes, and training may be expanded by releasing staff to perform these functions. Financials The NHCACS trust fund (approximately $38,000) provides start-up funding for the project. Total startup cost is estimated at $92,400, including a $37,500 match from County Property Management s construction labor contribution. Funds Sought NHCACS anticipates only one round of financing to build and equip the additions. Initial funding will be taken from the existing trust fund. The remainder of the funds will come from a capital campaign conducted in the community. Once operational, the facility will be self-supporting through revenue received from adoption fees. NC-2 Business Plan Management Academy for Public Health Page 4 of 51

Company Description (NHCACS) is a county organization, which operates under the covering of the Health Department. NHCACS is responsible for surveillance of rabies exposure situations and protection of the companion animals in the community. The shelter is located at 180 Division Drive in Wilmington, North Carolina. Our Mission The mission of NHCACS is to protect the community from the threat of rabies virus exposure, and to ensure proper animal care, through prevention, public perception, and education. One major goal of the organization is to increase successful adoption rates and decrease euthanasia rates of surrendered pets. Services NHCACS bridges the gap between public health and law enforcement. We enforce Section Five: Animals & Fowl of the Ordinance. This section includes all laws pertaining to domestic animal care, rabies exposure procedures, and licensing requirements. The current shelter (see Figure 1 on page 6) houses animals that are brought in or picked up running-at-large in the community. Those pets that are not recovered by their owners may be placed in the adoption area after a physical exam is conducted. Pets may be boarded at the facility for rabies quarantine. Officers patrol the area for strays, canvass communities to determine licensing status, and respond to rabies exposure situations and citizen complaints. Protection is available 365 days a year, day or night. The on-site spay/neuter and adoption play area additions will assist NHCACS staff in successful placement of pets in new homes. Surgery performed prior to adoption will ensure a healthier animal going home with their new parent at the point of adoption. Development to Date The initial adoption policy allowed pet owners to take their new family member home at the point of adoption. Surgery appointments were made as their pet was adopted; however, 50% never made the trip to the veterinary hospital. NHCACS realized they were as much a part of the problem as they hoped to be a part of the solution. In October 1999, a new program was implemented that established the division at 100% compliance on neutering of adoptive pets. Animals are currently adopted at the NC-2 Business Plan Management Academy for Public Health Page 5 of 51

shelter, but pet owners must wait until the surgical alteration is completed before they are able to carry their pet home. Officers are required to transport the pets to the veterinary hospitals daily, thus reducing valuable time for other important duties. Legal Status and Ownership NHCACS is a county owned and operated facility. The on-site spay/neuter facility may operate without state licensing for surgery performed on animals that are county property. Expansion to Phase II of the plan would require state licensure to perform surgery under the covering of a licensed veterinarian. Funding for the shelter and the additions has come from the general county budget. However, the initial start-up money to build the spay/neuter facility will be accomplished by a capital campaign. Some money has already been collected in an established trust fund specifically dedicated for the county s animal needs. Once operational, the facility will be self-sufficient based on market analysis projections. Figure 1. Animal Control (NHCACS) Facilities NC-2 Business Plan Management Academy for Public Health Page 6 of 51

Industry Analysis and Trends NHCACS is well positioned to take on the added responsibility of the spay/neuter facility and adoption play area. This marks a significant opportunity to meet customer needs in our growing community. Pet overpopulation is a national problem, and any work that can diminish the numbers of animal casualties should be implemented. Size & Growth NHCACS has seen considerable development in the last decade. Advances in technology have improved licensing procedures, which have markedly increased revenue. The division moved into our new facility in April 1995, which improved public image and made adoptive pets more readily accessible. We are strategically positioned to build the addition to the shelter as part of expanding our scope of service. Seasonality The numbers of unwanted, sick, and stray animals increase in the summer months, when more animals are reproducing. The number of pets surrendered increases, also (see Figure 2). The addition of a spay/neuter facility would have a corresponding increased demand for volunteers to operate during this time of the year. The Christmas holiday season also brings a wide variety of customers to the shelter seeking a new pet for a gift idea. Figure 2. Impounds and Adoptions Calendar Year 2001 600 500 400 300 200 100 0 Jan- 01 Feb- 01 Mar- 01 Apr- 01 May- 01 Jun- 01 Jul-01 Aug- 01 Sep- 01 Oct- 01 Nov- 01 Dec- 01 Impounded Pet Animals Adopted Pet Animals NC-2 Business Plan Management Academy for Public Health Page 7 of 51

Open Competitive Environment The area veterinary community may see the spay/neuter facility in Phase II as a threat to their practices. Clients that would normally seek care at their hospitals may come to the animal shelter instead. Other animal care shelters in the community may seek special privileges and discounted payment for services rendered. Failure to cooperate could result in antagonistic attitudes between organizations. Barriers to Entry Cost to build the additions is a major obstacle to implementation. An established trust fund is the initial source of start up capital, but a campaign would be necessary to fund the remainder of the project. Staffing is also a barrier in operation of the facility. Veterinarians from the area will be paid an hourly rate, but they must sacrifice time away from their busy practices. Volunteers will be needed to assist them in their duties. Long Term Opportunities Phase I will service the animals adopted from the shelter. Animals will be selected based on pre-determined criteria of adoptability. Surgery will be performed prior to placement in the adoption area, so the pet can go home with the new owner at the point of adoption. Since the recovery process is minimal, these animals will be adoptable within a day or two. Phase II will expand the surgical procedures to include animals in the community. A veterinary overseer will be needed to operate the facility and to obtain licensure for hospital activities. This service will establish NHCACS as a provider of low cost spay/neuters for the county residents to decrease pet overpopulation. NC-2 Business Plan Management Academy for Public Health Page 8 of 51

Target Market Our target market includes internal and external customers, intermediary and enduser customers, and the two phases of our plan. Each of these is examined below. Internal customers Internal customers include the Health Director, Board of Health, County Commissioners, County Property Management, and the staff of NHCACS. The Health Director, Board of Health and County Commissioners will be customers early in the process as we seek approval of this project. These stakeholders not only hold purse strings, but also control all major capital and programmatic campaigns by Health Department divisions. County Property Management will construct the facility, and therefore is a customer. The staff at NHCACS will play a key role in the success of the project from the beginning, and must be considered part of the process. Their normal operations must also be respected and disruption kept to a minimum. External customers External customers include adopters/potential adopters/general public, area veterinarians, area animal groups (Humane Society, Cat Adoption Team, Friends of Felines, Rescue Organizations), pet retailers/wholesalers, pet owners of low-income status and/or those without a veterinarian relationship. Adopters and potential adopters at NHCACS are the primary end-user target market for Phase I of our project. They will be targeted to adopt from NHCACS and given reasons such as convenience, reasonable cost, reduction of euthanasia and pet overpopulation. This market will drive Phase I to ensure our efforts are market driven and not product driven. The general public will be the target of our social marketing and public relation efforts. NHCACS has a negative image among much of the public, as do most animal control operations. A partnership with other animal groups will be forged. Pet retailers and wholesalers are possible strategic liaisons for donated materials, marketing assistance, public perception improvement, and entrepreneurial opportunities. Phase II will involve targeted marketing to pet owners who for many reasons do not have their pets altered. Some low-income pet owners perceive spay/neuter as cost prohibitive and an unnecessary expense. We will target this group with a message of low-cost, beneficial, and convenient spay/neuter services at NHCACS. We also hope the broader social marketing message of pet care, responsibility, and respect will drive some pet owners to veterinary offices for animal health care services. NC-2 Business Plan Management Academy for Public Health Page 9 of 51

Intermediary and End-users Intermediary customers in this spay/neuter project will be area veterinarians due to our plan to utilize their services at NHCACS to perform the spay/neuter procedures both in Phase I and Phase II of the project. The results of our area veterinarian survey indicate 92% of the respondents were in favor of mandatory spay/neuter and only 22% disagreed with the concept of an on-site spay/neuter facility (see Appendix 6). 6 We will target further marketing to those veterinarians supportive of the project. We hope to draw in more of the veterinary community with positive feedback from those involved from the beginning. The primary end-user customers will be pet adopters at NHCACS in Phase I and the low-income pet owner population in Phase II. In Phase I, we will market the enhanced convenience, affordability, and good deed aspect of adopting from NHCACS. In Phase II, we will develop marketing vehicles that reach low-income pet owners and those resistant to spay/neuter. Two Phases of Project Phase I will target those persons adopting animals from NHCACS. The improved services associated with adopting will enhance the experience for adopters and we will encourage referrals and positive word of mouth. We will also target those considering adoption. This will involve partners such as veterinary offices, pet product retailers, area animal groups, area publications, and other settings where potential adopters can be reached. In Phase II we will add a marketing effort toward low-income pet owners and those who have not spayed or neutered their animals. The primary assumption with this target population for low-cost spay/neuter services is that low-income pet owners see the procedure as too costly and not really necessary. Demographics The end-user demographics in Phase I include the entire county population. Those households with adequate space and living conditions for pet animals, economic resources and commitment to good physical and emotional health for the adopted animals are preferred. In Phase II, the end-user demographics include clients whose socioeconomic status and income level might preclude them from having their pet surgically altered. These individuals recognize the benefits of pet ownership and can afford to have a pet, but they may not feel that they can afford the luxury of having the pet spayed or neutered. NC-2 Business Plan Management Academy for Public Health Page 10 of 51

Competition There are two distinct types of competition that we will consider as we build our business plan. These are: Competition for Surgical Services Competition for Adoptive Owners Competition for surgical services refers to the demand for surgical sterilization by existing pet owners. Competition for adoptive owners refers to the availability of pets for adoption by various factions in the community. It is important to consider both types of competition for the two phases of our plan. Competition for adoptive owners will directly impact the ability of NHCACS to deliver surgical spay/neuter services in a timely fashion for potential adopters. Competition for surgical services will be a major factor as we expand into Phase II providing low cost spays and neuters for that segment of the community who cannot afford to have these services provided by the private sector but did not adopt their pet from NHCACS. Introduction to Competition in the Veterinary Industry The delivery of veterinary medical services is a complex industry. Traditionally, most veterinary practices use frequently-utilized, high mark-up services such as routine vaccinations to offset the other aspects of practice that do not have as high a profit margin. This is the case for several reasons. First, third party payers are just now coming into play in the veterinary industry and as a result, owners of pets facing expensive treatments or surgeries, who do not have insurance, have been reluctant to commit to such major expenses. Second, the cost of providing sophisticated services (such as chemotherapy or orthopedic surgery) is prohibitive to most owners. Consequently, most veterinarians use high mark-up routine services to offset the cost (and thereby reduce the price of) the more sophisticated procedures. A second philosophy, and one that is becoming more mainstream, is that every aspect of a veterinary operation needs to be self-supportive. In either philosophy, the cost of surgical sterilization (spaying or neutering) is going to be more expensive for the pet owner. In the first scenario, since surgical sterilization is a routine procedure with a significant mark-up, the income from these procedures will be used to offset more sophisticated services. In the second scenario, the cost of surgical sterilization will have to be self-supportive, so it must generate a profit for the practice. Competition for Surgical Services Enter the era of the low-cost spay/neuter clinic. During the past decade, the social awareness of the veterinary industry has increased and as a result, many communities now have low-cost spay/neuter facilities to encourage the public to have their pets altered NC-2 Business Plan Management Academy for Public Health Page 11 of 51

as a means of reducing the overpopulation of pet animals. This is the case in New Hanover County. For almost a decade, the Humane Society (NHCHS) has operated a low cost spay/neuter facility at its shelter. Operating as a private, not-for-profit organization, NHCHS can offer reduced rate surgical sterilization in direct competition with the local private veterinary community. Additionally, several veterinary practices in have maintained their surgical sterilization fees at as low as possible in order to compete with NHCHS and to encourage their clients to have their pets altered. Still others offer low-cost surgical sterilization similar to lossleaders in grocery stores (reduced cost cola, for instance, in hopes that shoppers will buy higher-markup items such as chips and dip) with the thought that clients who decide to have their animals altered may, at the same time, choose to have other full-fee services, such as vaccinations, performed. There are other gimmicks used by the private sector to encourage clients to have their pets spayed or neutered. One practice has a reduced rate spay day each week and another advertises reduced rate spays certain times of the month. All of these programs would be in direct competition with Phase II of our project providing low-cost surgical sterilization to the general public. Competition for Adoptive Owners Another form of competition to be considered with Phase I of our project would be groups that provide adoptions (and arrange their own spay/neuter services). One such group, Cat Adoption Team (CAT) adopts cats to the general public and has an arrangement with several veterinarians to provide low-cost surgical sterilization for their adoptees. There are several other shelters in the general area that adopt both dogs and cats, including NHCHS, Southport-Oak Island Animal Rescue (SOAR) and Pender Animal Lovers (PAL). All of these facilities compete directly with NHCACS for the adoption of available animals, and indirectly compete in the demand for surgical services for those adopted pets. All of these facilities operate as not-for-profit shelters that advertise a no-kill policy, that is, they do not euthanize animals. This puts NHCACS at a distinct disadvantage. NHCACS is thought of as the dog catcher. Even the name Animal Control substantiates the misconception that the employees are more concerned with enforcing the laws than the adoption of homeless animals. Being a governmental agency, they are bound by the statutory regulations to not refuse any animal, no matter how unsuitable for adoption it may be. This results in higher euthanasia rates, which when publicized, reflects negatively on the organization. All of these perception issues result in competition for available homes for homeless animals. However, there are some positive aspects to the organization. Owing to the fact that NHCACS is the largest adoptive organization in the region, our strong suit is the sheer number, and hence variety, of animals available for adoption. This volume should allow potential adopters to find exactly what they are looking for in a potential pet. (See Appendix 7 for a graphic comparison between NHCACS and NHCHS impounds and adoptions.) NC-2 Business Plan Management Academy for Public Health Page 12 of 51

Market Share Distribution A review of estimated data for the last fiscal year shows some interesting trends (see Figure 3). The majority of animals altered in, North Carolina are done in private practice settings. This corresponds with the number of private practices which exceed both adoptive organizations and low-cost spay neuter services in absolute numbers, and therefore availability of services. The small market share of both the adoptive organizations and low-cost spay/neuter facilities may reflect a saturation of their available services. Potential clients get frustrated by a lack of available adoptive animals and the long wait for an appointment to have their pets surgically altered. This data is important for two reasons. First, they show the distribution and market share of the various competing organizations at the current time. Second, they show the tremendous potential for market penetration in both the area of adoptive organizations and low-cost spay/neuter services, corresponding, respectively, to Phase I and Phase II of our project. Figure 3 graphically displays the relative percentages of distribution of surgical services (estimated) currently in, North Carolina. Figure 3. Distribution of Surgical Sterilization Services in, North Carolina (Percent of Market) 10% 5% Private Veterinary Practice Low Cost Spay Neuter Adoptive Organizations 85% Our goal with this project is twofold. First, we would like to increase our market share of both adoptive organizations (currently estimated to be 5%) and secondly, low cost sterilization (currently estimated to be 10%). By doing so, it is believed that we can not only increase our pieces of the pie, but also the size of the whole pie, as well. It is important to note two significant concerns that we have as a result of increasing our piece of the pie. First, by increasing our percentage of the pie, absolute numbers of procedures performed will increase, thereby increasing our workload. Second, it is important to NC-2 Business Plan Management Academy for Public Health Page 13 of 51

remember that increasing our piece of the pie comes with the risk of alienating the local veterinary community. We feel that this is not a significant problem since the majority of veterinarians who responded to our survey (92%) viewed mandatory spay/neuter in a positive light and only a small percentage (22%) disagreed with an on-site spay/neuter facility (see Appendix 6). Increasing the size of the whole pie means more people having their animals altered which, as a result of better education of the pet-owning public, will ultimately lead to a decrease in pet overpopulation. Competitive Position As previously mentioned, NHCACS is at a distinct disadvantage when it comes to public perception due to their statutory requirement to enforce the laws regarding animal welfare and rabies prevention. This requirement results in NHCACS being viewed by the public as the dog catcher. With regards to Phase I of our project, this negative image has the potential to reduce adoptions. With respect to Phase II, the negative image might carry over and prevent pet owners for using NHCACS services for surgical sterilization. To combat this negative public perception, NHCACS will have to make substantial efforts to enhance their public image with regards to adoptions and pet availability. Additionally, in order to attract potential clients for Phase II, NHCACS will have to be flexible and responsive to the needs of pet owners, specifically with regards to the availability of surgical appointments. NC-2 Business Plan Management Academy for Public Health Page 14 of 51

Strategic Position Due to the large number of animals that annually are surrendered or impounded at the shelter, NHCACS has a tremendous capacity to adopt animals to the public from not only, but surrounding areas as well. No other shelter or adoptive organization has the quantity of animals for prospective adopters to choose from. Over the past five years, the other main adoptive organization in the area, NHCHS has become more selective in their acceptance and adoption criteria (see Appendix 7a) which has led to additional animals being presented to NHCACS for surrender. However, during that same time period, the figures cited for animals impounded and adoption rates have remained relatively flat at NHCACS, demonstrating the community s absorption (Friends of Felines, Cat Adoption Team and other private adoptive organizations) of the excess strays. The relatively low adoption rate at NHCACS demonstrates the tremendous potential to improve adoption percentages (see Appendix 7b). In order to improve in the area of number of pet animals adopted (and adoption percentages), NHCACS must work to shed the image of the dog catcher and gain public perception as a more userfriendly organization. Owing to the fact that it is a governmental organization, NHCACS will always have some of the mandated regulatory functions and paperwork associated with the adoption process. However, with the advent and growth of their volunteer organization, NHCACS will work to streamline the adoption process. Additionally, prospective adopters should have a wider range of adoption-ready pets to choose from since the surgical sterilization will be done on-site and can be accomplished prior to the pets being put on display for adoption. Animals altered, but not adopted, would be placed in foster homes in hopes of successful adoption, in time. Pet Ownership Trends As the benefits of the human-animal bond become more widely recognized, the trend towards pet ownership in our society will increase, this, according to the U.S. Pet Ownership and Demographic Sourcebook, published by the American Veterinary Medical Association. Additionally, with more families being dual income-no kids, pets will serve as surrogate family members. The trend in pet adoption is more towards shelter or rescue adoption. This is thought to be a result of a more ecologically enlightened society that will look first to help relieve the pet overpopulation problem rather than vicariously contribute to it by supporting the breeding of pet-quality animals. Another interesting trend is that more pet owners are choosing to have their pets spayed or neutered so as not to contribute to the pet overpopulation problem. Again, this can be directly attributed to the more ecologically friendly attitude that society in general takes. While all of this will have an impact on Phase I of our project, it will directly impact Phase II which will be to provide surgical sterilization services to the general public, not just adopted animals. NC-2 Business Plan Management Academy for Public Health Page 15 of 51

Target Market For Phase I, our target market is the individual seeking to adopt a pet animal. As previously mentioned, this market is strong and growing. By providing healthy, surgically altered animals for adoption, we hope to give pet owners years of healthy companionship and not contribute to the pet overpopulation problem. The target market for Phase II will primarily be the pet-owning public who may be unable to afford surgical sterilization by the private sector. However, as is the case with the private veterinary practice, by keeping the fees for spaying and neutering as low as possible, we are hoping to encourage all pet owners to have their animals altered in order to prevent pet overpopulation. In the section on Competition, the graphic illustration showed only 10% of the surgical sterilization in is provided by low-cost spay/neuter facilities. This represents a tremendous market to be developed (See Figure 3, page 13.). NC-2 Business Plan Management Academy for Public Health Page 16 of 51

Risk Assessment As previously mentioned, one risk is the growth of competing adoptive agencies and low-cost spay/neuter facilities. Due to the public s increased awareness of the plight of homeless animals, there is a move to establish no-kill shelters and to promote lowcost surgical sterilization. While this risk will have minimal impact on Phase I, the impact on Phase II could be considerable, and will need to be studied and considered. A second risk is the unforeseen anesthetic complication which may result in the death of an animal. While impact of this risk is minimal in Phase I (the animals would be altered prior to adoption when they are still considered the property of New Hanover County), it is substantial in Phase II, where the loss of a pet even in the absence of negligence might lead to negative publicity for the shelter. However, this risk is present for any organization providing surgical sterilization (nationwide statistics show unexpected anesthetic death to occur approximately once in every 300,000 procedures) and is considered minimal. A third risk is the health of the economy. Economic downturns may lead to fewer pets being adopted. This risk is considered minimal since studies have shown that even in the face of economic adversity, people will still adopt pets and provide the necessary care for them. A fourth risk is the potential alienation of the local veterinary community due to the loss of revenue from providing surgical services for the county (Phase I) and the direct competition offered by Phase II. This risk is viewed as minimal. Results of our veterinary community survey prior to the inception of this project indicate that the majority view an on-site spay/neuter facility in a positive light (see Appendix 6). Additionally, we plan to involve the veterinary community in the implementation and staffing of our facility. A final risk includes the saturation of services (Phase II) by individuals seeking to have their pets spayed or neutered. Such excessive demand has forced NHCHS to suspend their waiting list and appointment scheduling on occasion. This risk is of concern because individuals may decide to have their pet altered due to an unforeseen circumstance such as the dog coming in heat or being accidentally bred. If we cannot meet the demand, some individuals may decide not to have their pet altered when the exigency of surgery has passed. Such a situation might inevitably contribute to the pet overpopulation problem. We view this scenario as not only a risk but also a justification of need. By being able to offer low cost spays and neuters in a timely fashion, we significantly mitigate the impact of this risk. NC-2 Business Plan Management Academy for Public Health Page 17 of 51

Regulatory Issues The biggest regulatory issue is the licensing of an on-site spay/neuter facility by the state of North Carolina. The North Carolina Board of Veterinary Medical Examiners ( The Board ) regulates the practice of veterinary medicine in the state of North Carolina. The Board has established a series of standards for the licensing of a surgical facility. This will be an issue only during Phase II. The facility and the veterinarians performing surgery there will all have to be licensed. This issue is minor since we plan to consult the practice act prior to the design and construction phase of our project. The North Carolina Practice Act requires that the Board inspect our facility prior to occupancy. Additionally, the credentials of all surgeons working for the facility will be scrutinized. This is not an issue for Phase I, since the facility is operated by the county and will only surgically sterilize county animals. This is not considered the practice of veterinary medicine and is not subject to the scrutiny of The Board. Additional regulatory issues include the licensing and usage restrictions on controlled substances. There are accepted procedures with regards to the use and documentation of controlled substances that will have to be implemented and adhered to during the operation of a spay/neuter facility in either Phase I or Phase II. NC-2 Business Plan Management Academy for Public Health Page 18 of 51

Marketing Plan and Sales Strategy NHCACS capitalizes on the strong emotional and social attraction to pet adoption. We will also increase the convenience of the adoption process with on-site spay/neuter services, play area for adopter and instructional use, and special attention to making the facility more conducive to adopters/customers. Pricing of adoption and spay/neuter services will be held to a minimum to attract the widest segment of the population as possible. Our business will meet important customer needs: affordable and convenient adoption, low cost spay/neuter, good referrals for veterinary services after adoption, educational materials, future opportunities for obedience classes, and a feeling of satisfaction for adopting a homeless animal. Our message will combine traditional features such as convenience, low-cost, unparalleled selection, extensive information, healthy animals, and good customer service along with our social message of doing a community service by adopting a homeless animal. Future relations between NHCACS and adopters will exist via rabies licensing, instructional classes offered, possible adopter e-newsletter or mailed newsletter. Pointed effort will be made by NHCACS to connect adopters to area veterinarians for on-going relationships. One key vehicle for this is the information packet each adopter will receive (see Appendix 4). The emotional attraction to pet adoption (human/animal bond, benefits of pet relationship, helping community) will be marketed heavily, and the reasonable cost with increased convenience will be used as the closer to convince our target market to adopt rather than buy from retail outlets or breeders. Due to our strong desire to team with area private animal adoption organizations, we will focus less energy on competing with them for adoptions and more on raising the community level of adoptions and lowering the level of homeless animals. We will focus more of our message in Phase II on convincing the public to have their animal(s) altered. This will reduce the amount of unwanted animals being euthanized. Marketing Vehicles Our initial target for Phase I will be area veterinarians. Their support and participation to perform the spay/neuter procedures are key to Phase I success. The actual vehicles will be personal communication, printed material explaining the plan and mutual benefits, and group presentations with question and answer sessions. The same vehicles will be used for internal customer marketing to our Health Director, Board of Health, County Commissioners, and other important gatekeepers for project approval. Vehicles for increasing the adoption rates at NHCACS in Phase I will include printed materials in veterinarian offices, pet retailers, public events, and other venues, which we hope to make permanent at these places. We will also solicit media coverage at the launch of the project and do media stories when the facility actually opens. An information kit will go with each adoption (see Appendix 4). NC-2 Business Plan Management Academy for Public Health Page 19 of 51

In Phase II, we will continue Phase I operations with associated marketing activities, but will add marketing to the low-income pet owner population and also those pet owners skeptical of the need and benefits of spay/neuter. In Phase II we will enhance the social messages about responsibility toward community, public health risk, health benefits for animals after spay/neuter, affordability of procedure at NHCACS, relative convenience, and low complication risk due to experienced area veterinarians doing procedures. Marketing vehicles in Phase II will include free or low cost media coverage of our services and message, new print materials placed at point of purchase in pet retailers, veterinary offices, other area animal organizations offices, and places of business our target market may frequent. These might include convenience stores, grocery stores, hunt clubs, employers, etc. NC-2 Business Plan Management Academy for Public Health Page 20 of 51

Operations NHCACS is a division of the Health Department. We provide services to all residents, by enforcing rabies surveillance regulations; licensing cats, dogs and ferrets; and sheltering unwanted, sick, and injured animals. We also adopt animals and control pet overpopulation by spaying, neutering, and vaccinating the animals adopted from our facility. We are a customer-responsive operation, especially in light of recent budgetary and staffing cuts. We strive to provide the best possible service to the citizens of New Hanover County. Our goal at NHCACS is to build a spay/neuter clinic attached to our existing facility, with a separate entrance from our main building. The clinic will operate once or twice a week depending on the number of adoption candidates on hand. The clinic will be built and operational in two years (see Appendix 8). The clinic will be staffed with contract veterinarians and volunteers, both of which will be essential for successful operations. Our intent is to provide the best service possible. With the clinic performing procedures on-site, adoption candidates are ready for their new home, no waiting periods necessary, as we have had in the past. Cost and Time Effective Program With implementation of our program, costs will decrease and time effectiveness will increase. Our procedure of transporting adopted animals to the veterinarians throughout the area will cease, therefore freeing NHCACS officers to perform rabies surveillance and license canvassing in the community. Competitive Advantage On average, NHCACS officers spend 520 hours annually transporting adopted animals to local veterinarians. That translates to $9,204.00 in salary dollars. While having the clinic on site wouldn t eliminate this cost, it would allow increased enforcement of licenses and citations by the number of man-hours listed. The time will be spent generating revenue in the form of writing civil citations for violators. It is estimated that the 520 man-hours of increased citation and license canvassing would generate a 5% increase in license and citation fees, or approximately $22,000 annually. NC-2 Business Plan Management Academy for Public Health Page 21 of 51

Problems Addressed Spaying and neutering all adoption candidates prior to placement will increase cost with the initial start-up of the clinic. This is included in our cost estimates for the first quarter of operation. Other issues of concern are making sure we have local veterinarians on board, and backup available in case of an emergency. Location of the site Touring our facility for the right spot was key. We needed a separate entrance, but it needed to be next to the holding area of the shelter for convenience of moving the animals in and out. We decided to place the clinic on the left side of our existing facility (see Figure 6), allowing room for a separate entrance and play area. Figure 6. Location of Spay/Neuter Facility Addition NC-2 Business Plan Management Academy for Public Health Page 22 of 51

Technology Plan NHCACS is on the cutting edge of technology. We have a computer system in place that allows us to track our accounting functions, inventories, and clients, just to name a few. Our system has functions that we have not explored yet. When we selected the software, we considered ease of use; cost; security; and ability to upgrade, expand, and integrate with our existing data technology system. At this stage our system is providing us with everything we need. Our computer system is updated annually to provide us with the most up-to-date features. At this stage we anticipate needing computer access and telephone service to meet our needs. Other technology concerns would be tracking animal medical history documentation and equipping the clinic with state of the art equipment. For external technology we would like to be able to communicate with the veterinary community via email and telephone. All of the local veterinarians do not have access to the web to communicate with us. Communicating via email would save time and money to the veterinarian community and NHCACS. Via the web the veterinarians could provide us with the latest information regarding proper animal care, medication, and vaccination information to distribute to the public at the time of adoption. This could potentially create new business for the veterinarians. With information constantly changing, having the latest information is essential. NHCACS is on the web. Check out our web site at www.nhcgov.com click on the Health Department and find the link for to find out about our operations, county ordinances and fees. NC-2 Business Plan Management Academy for Public Health Page 23 of 51

Management and Organization Key Employees The success of the facility expansion is dependent on all NHCACS staff. Specific duties are divided into three main areas, including field work, clerical functions, and shelter operations. A section supervisor, who is directed by the NHCACS public health division manager, oversees each area (see Appendix 9). Managers: Jean P. McNeil, Public Health Division Manager. Jean McNeil has worked in the division for nearly thirteen years. She moved up from an officer position to overseeing the entire division in the span of time she has been with the shelter. She holds a degree in veterinary medicine and has worked in the community at local hospitals. During her term as the division s director, she has implemented the 100% compliance rate on surgical procedures for adoptive pets, installed the new software system that has added animals to be viewed on the internet site, and rescued three sets of animals from abusive situations. McNeil s major goals include increasing adoption rates and decreasing euthanasia rates of impounded animals. Customer service to the community is also a priority. The additions would enhance the shelter s effectiveness and provide a boost to meeting these objectives. Judy P. Evonko, Animal Control Supervisor. Judy Evonko began her service with NHCACS as an officer. She has been promoted twice since her start with the organization. The first promotion was to the position of shelter supervisor before moving into her current slot. She is a certified veterinary technician, and she worked in the private sector in this capacity prior to becoming a county employee. Daisy S. Brown, Administrative Support Supervisor. Daisy Brown holds a degree in business administration. She served as the Health Department s human resource representative prior to her promotion to her current clerical supervisory position. She is the shelter contact for clerical and outreach volunteers. Nancy A. Ryan, Shelter Supervisor. Nancy Ryan bred and showed dogs for the majority of her adult life. Her schooling background is in business marketing and management. She started with the division as a shelter attendant and has since been promoted to the supervisory position. She is a member of Dovia, a volunteer recruitment organization. She is the shelter contact for animal volunteers, and she will be the primary overseer of the additions. NC-2 Business Plan Management Academy for Public Health Page 24 of 51

Board of Health The Board of Health consists of nine community professionals, who are appointed for service by the NHC County Commissioners. They are the direct governing body that oversees the activities of the Health Department. NHCACS is a division of the Health Department. Advisory Committee The NHCACS Advisory Committee is comprised of ten community citizens, who are appointed by the Board of Health. The veterinarian who serves on the Board of Health is the link between the two committees. The committee meets bimonthly from fall until spring. It serves as a valuable resource to NHCACS on a continuing basis. Specialists An area architect will design the building additions, including the surgical suite. Area veterinarians will be used to perform the surgical procedures. Their work will be monetarily compensated at an hourly contracted rate; however, voluntary assistance will also be solicited. Technicians will be gathered from local volunteers for surgery days. NC-2 Business Plan Management Academy for Public Health Page 25 of 51

Community Involvement & Social Responsibility Due to our being part of county government, we are strictly bound by law, ordinance, county policy, and high ethical standards. We are committed to serving the entire public at the highest level possible. Being part of county government requires all of our legal, human resources, marketing, contracting, and other business dealings to be beyond reproach and absolutely fair-handed. We are guardians of the public trust, and our good citizenship plays a large role in all decisions. Our responsibility for this venture is divided into three audiences: veterinarians who will work with us and do the spay/neuter procedures, area animal groups with common goals to decrease pet overpopulation, and the public at large. Area veterinarians must know that we have their best interests in mind as we formulate strategies to reach our goals of reduced rabies risk, reduced pet population, and improved animal welfare. We will show them we intend to get pet owners into relationships with veterinarians for regular care, and include them as our primary referral to adopters/customers. We will accomplish this in a number of ways. First, we will require that rabies vaccinations be given by a local veterinarian of the adopter s choice. Rabies vaccination is required by law in North Carolina, and the vaccine must be administered by a licensed veterinarian. We expect citations to increase as officer field time increases after they no longer have to transport animals to veterinarian offices for spay/neuter surgery. Second, we will include an adoption packet (see Appendix 4) which will have education materials, a list of area veterinarians, and will encourage adopters to establish a relationship with a veterinarian of their choice. We will also be sure to publicize the positive contributions area veterinarians are making. This will position us as good citizens in that we do not desire to intrude on their livelihoods. Several animal interest groups exist in our area. We are reaching out to all of them to form a coalition to work on our common goals together. This coalition will be integral to this project s success and on-going success of animal welfare / control issues. Our reaching out to these groups will show we are good citizens and hopefully inspire a good cooperative relationship among all the groups. Our relations with the public are two-fold. We have direct contact with those adopting from us, those coming in to pay rabies license fees, claim their animals, and do other personal transactions. Another relationship is one of image. Animal Control here, as in many places, is perceived by many to be the place where unwanted animals go to be euthanized. From a public perception standpoint, we have the burden that we must of enforcing laws and ordinances, and killing animals that are unclaimed, sick, or potentially dangerous. We do many on-going activities that relate our mission of animal welfare. Some examples are spay-a-thons, adopt-a-thons, low cost rabies vaccination events, fundraisers, radio shows, newspaper articles, public service announcements, and more. This project will further our goals in showing our public that we want to dramatically reduce the number of euthanasias we are forced to do, improve animal and human welfare, and find good homes for all the animals we have for adoption. As mentioned in NC-2 Business Plan Management Academy for Public Health Page 26 of 51

our marketing plan, we will adopt social marketing strategies to effect changes in the public attitudes toward their pet s welfare and NHCACS. The message will be that stray and unwanted animals increase risk of rabies exposure and injuries for everyone, and all citizens should play a role in decreasing this risk. We will suggest that pets not be obtained unless adequate attention, housing, finances, and healthcare are planned for. We will also suggest that to do otherwise is irresponsible citizenship, and harmful to the overall health of the entire community. We will make sure every citizen knows they can bring any animal into animal control and every effort will be made to adopt the animal out to a loving home. NC-2 Business Plan Management Academy for Public Health Page 27 of 51

Development Plan Long-term Goals Our primary goal is to establish an on-site spay/neuter clinic for shelter dogs and cats that are targeted for adoption. The clinic should begin operation in Fall 2003 (see Appendix 8). An exercise/play area will also be provided adjacent to the clinic. Our second major goal is expansion of spay/neuter services to the public at low cost. We anticipate this expansion to be available in the second year of operation, or 2004. The physical facility will be added on to the existing NHCACS building and will include an exercise/play area for shelter animals. Strategies for Achieving Goals A physical facility in which to perform the services is required. It is planned as an addition to the existing NHCACS building. Concurrent with design and construction of the facility, fundraising activities will be taking place and the final arrangements made for volunteer and paid staff (assistant and veterinarians) to man the clinic. We must also equip the spay/neuter facility. We expect to do this through donations, possibly of used human equipment, and purchases where necessary. We will approach suppliers and manufacturers of veterinary pharmaceuticals to secure potential donations. Operations will begin with surgery on shelter dogs and cats only, and only those that are available for adoption. The expected annual number of surgical procedures is six hundred and fifty to seven hundred (650-700) for the first year, making hours of operation about six to eight (6-8) hours per week. Major Risks We prefer to think of our risks as opportunities. Thus, one of our major opportunities is to obtain acceptance of the program from both the local veterinarians and the general public. Public acceptance is crucial to the success of Phase II expanding to include low cost spay/neuter services to the public. Another opportunity we have is to assure adequate funding for both Phases I and II of the project. Construction cost of the facility will be met by donations already received and currently held in trust, and donations to be solicited. Ongoing operations will be covered in Phase I by the elimination of contract fees now paid to local veterinarians to perform spay/neuters on adopted pet animals. Fees for services charged to pet owners will cover the additional costs under Phase II. We anticipate limited risk here, as no full time staff will be hired, with veterinarians and assistants either working in a volunteer capacity or on a part-time, per hour basis. NC-2 Business Plan Management Academy for Public Health Page 28 of 51

Phase II operations do require additional licensing and possible accreditation. An inability to acquire these could force abandonment of Phase II plans or closure of Phase II operations if already begun. Every effort is now, and will continue to be, made to ensure that all regulatory issues are addressed in advance of Phase II implementation. Exit Plan Exiting Phase II of our in-house spay/neuter program, due to poor acceptance or excessive operational costs, would be through closure of the program. Should economic conditions make it necessary to also exit Phase I, we would also do so through program closure and re-initiate the current mandatory spay/neuter program. The pet exercise/play area would remain in use and the facility space could be easily converted into additional space for NHCACS. NC-2 Business Plan Management Academy for Public Health Page 29 of 51

Financial Information Assumptions Personnel Shelter Attendant Part-time o Will be required to assist veterinarians with surgery procedures and maintain the surgery area. o No other staff will be added to NHCACS at this time. Veterinarians and veterinary technicians will be working on an as needed basis, some as unpaid volunteers. Key Expenses Facility Expansion Surgery Equipment Financing Start-up Funding o Trust funds will provide initial funding (approximately $38,000 as of December 31, 2001.) o Community fundraising and donations expected Approximately $16,900. o In-kind donations anticipated for all equipment and furnishings. o In-kind donation anticipated for labor to complete the interior of the building addition. Operational Funding o Adoption fees will fully cover operation costs and provide excess revenues to help offset other NHCACS operations. Other Assumptions This is a cash basis operation. o Revenues and expenditures are accounted for on a cash basis. o Adoption fees are collected in cash. No credit is extended. Therefore there are no accounts receivable. Co-operation and volunteer time from the veterinary community is expected. o However, full estimate of costs for veterinarian time is calculated in procedure costs to be conservative in net revenue projections. Savings in Animal Control Officers time and travel are not an offset to the SPAY project costs. All Officer positions will remain and efforts will be redirected. Any revenue impact from Officer redirection is not included in this projection, as it is expected to be negligible. 5% salary increases per year (including both market adjustments and merit increases). 3% inflation increases per year for non-salary items. Benefits = 30% of salaries NC-2 Business Plan Management Academy for Public Health Page 30 of 51

Start-up Capital and Expenditures A summary of revenue sources and expenditures for the start-up phase of SPAY follows: Revenue Sources NHCACS Trust Fund $ 38,000 Monetary Donations 16,900 In-Kind Donations 37,500 Total Sources of Capital $ 92,400 Start-up Expenditures Buildings Construction $ 65,000 Fence Expansion 1,500 Total Buildings 66,500 Capital Equipment Furniture 2,500 Equipment 15,000 Total Capital Equipment 17,500 Reserve for Contingencies (10%) 8,400 Total Start-up Expenditures $ 92,400 NC-2 Business Plan Management Academy for Public Health Page 31 of 51

Cash Flow Initial twelve (12) months of operation The chart below summarizes, by quarter, the revenues and expenditures projected for the first twelve months of SPAY operation, expected to begin on October 1, 2003. This includes the second through fourth quarters of our fiscal year ending June 30, 2004, and the first quarter of our next fiscal year. Our seasonally adjusted adoption and procedure expectations are based on our actual recent adoption statistics. SPAY: Sterilization Protects Animals and You Initial 12 Months Operation by Quarter Revenue and Expenditure Projections Projected Revenues 10-1 -- 1-1 -- 4-1 -- 7-1 -- Total 12-31-2003 3-31-2004 6-30-2004 9-30-2004 1st 12 Months Adoption Fees - $60 per pet $ 6,075 $ 8,100 $ 14,175 $ 12,150 $ 40,500 Projected Expenditures Salaries: Shelter Attendant - 15 hours per week 2,149 2,149 2,149 2,256 8,703 Benefits (estimated at 30% of salaries) 645 645 645 677 2,611 Subtotal - Salaries & Benefits 2,794 2,794 2,794 2,933 11,314 Procedure Costs 2,683 3,577 6,260 5,366 17,885 Maintenance - - Furniture & Equipment - - Insurance 150 150 Utilities - - Telephone - - Office Supplies - - Postage & Shipping - - Marketing & Advertising - - Travel & Training 125 125 125 125 500 Subtotal - Expenditures 5,751 6,496 9,178 8,424 29,849 Net Revenue Over (Under) Expdentitures $ 324 $ 1,604 $ 4,997 $ 3,726 $ 10,651 Assumptions: Number of Adoptions 101 135 236 203 675 Number of Spay/Neuter Procedures 105 140 245 210 700 NC-2 Business Plan Management Academy for Public Health Page 32 of 51

Revenue and Expenditure Projections The following chart provides a projection of revenues and expenditures for the operation for the nine-month partial first year, and the following five years. Growth in adoptions is expected at a reasonable rate over the years as projected below. SPAY: Sterilization Protects Animals and You Six Year Projection Revenue and Expenditure Projections Projected Revenues 10-1-03 -- FY Ending FY Ending FY Ending FY Ending FY Ending 6-30-2004 6-30-2005 6-30-2006 6-30-2007 6-30-2008 6-30-2009 Adoption Fees - $60 per pet $ 30,375 $ 40,500 $ 42,000 $ 43,500 $ 45,000 $ 46,500 Projected Expenditures Salaries: Shelter Attendant - 15 hours per week 8,596 9,026 9,477 9,951 10,448 10,971 Benefits (estimated at 30% of salaries) 2,579 2,708 2,843 2,985 3,134 3,291 Subtotal - Salaries & Benefits 11,174 11,733 12,320 12,936 13,583 14,262 Procedure Costs (see Appendix ) 12,938 18,422 19,080 19,738 20,395 21,053 Maintenance - Furniture & Equipment - Insurance 150 155 159 164 169 174 Utilities - Telephone - Office Supplies - Postage & Shipping - Marketing & Advertising - Travel & Training 500 515 530 546 563 580 Subtotal - Expenditures 24,762 30,824 32,089 33,384 34,709 36,069 Net Revenue Over (Under) Expdentitures $ 5,613 $ 9,676 $ 9,911 $ 10,116 $ 10,291 $ 10,431 Assumptions: Number of Adoptions 506 675 700 725 750 775 Number of Spay/Neuter Procedures 525 700 725 750 775 800 NC-2 Business Plan Management Academy for Public Health Page 33 of 51

Appendices Appendix Contents 1. Age of Terrestrial Rabies Epizootic 35 2. Geographical Diffusion of Rabies in North Carolina 36 3. Positive Rabies Cases by Year 37 4. Adoption Packet Contents 38 5. Off-Site Spay/Neuter Concerns 39 6. Survey Results 40 7a. Adoption Statistics New Hanover Humane Society 47 7b. Adoption Statistics NHCACS 47 8. GANTT Chart 48 9. Management Structure 49 10. Internet Resources 50 11. Editorial Saving Pets and Taxpayers 51 NC-2 Business Plan Management Academy for Public Health Page 34 of 51

Appendix 1 NC-2 Business Plan Management Academy for Public Health Page 35 of 51

Appendix 2 NC-2 Business Plan Management Academy for Public Health Page 36 of 51

Appendix 3 POSITIVE RABIES CASES BY YEAR NEW HANOVER COUNTY Calendar Year Fiscal Year 1996 19 cases 95-96 8 cases 1997 26 cases 96-97 29 cases 1998 8 cases 97-98 13 cases 1999* 3 cases 98-99 5 cases 2000* 3 cases 99-00 2 cases 2001* 2 cases 00-01 3 cases 2002* 0 cases 01-02 1 case The first positive rabies case was discovered on March 26, 1996. The animal was a bobcat found in a dog pen on Marathon Road in Castle Hayne, NC. *The decrease in the number of diagnosed rabies cases can possibly be attributed to better public education, implementation of the mandatory spay/neuter program, and fiscal responsibility. This list is current through March 14, 2002. NC-2 Business Plan Management Academy for Public Health Page 37 of 51

Appendix 4 ADOPTION PACKET CONTENTS NEW W HANOVER COUNTY ANIMAL CONTROL SERVICES Short version of County ordinance Veterinarian list Rabies brochure Vaccination schedule Post-operative care (if needed) Behavior issues and resources Free samples Collar & leash (Or cat-box) Recommended care: o Grooming issues, e.g. flea control o Heartworm disease o Feline leukemia concerns o Dental upkeep NC-2 Business Plan Management Academy for Public Health Page 38 of 51

Appendix 5 OFF-SITE SPAY/NEUTER CONCERNS NEW HANOVER COUNTY ANIMAL CONTROL SERVICES Veterinarian concerns: Surgical complications discovered @ point of surgery (e.g. cryptorchid, pyometra or pregnant) No desire to perform pediatric surgeries Transported animals contaminating their front office Additional surgical care required (pain medication) Time constraints of transport Officer concerns: Long wait for service at veterinary hospital Multiple questions asked regarding animal transported Multiple deliveries decreased time for other duties Verification of correct pet for transport Clerical concerns: Prolonged time to secure surgery appointment Unable to schedule appointment on Saturday afternoons Drawn out adoption process complete all requirements Customers desire to take pet at point of adoption Need for explanation--necessity of performing surgery Unable to adopt to a broader range of customers Customer concerns: Unable to take pet at point of adoption Pet dies under anesthesia (this is also extremely difficult for ACS staff and veterinary personnel to deal with) More pets available for adoption Better process to adopt NC-2 Business Plan Management Academy for Public Health Page 39 of 51

Appendix 6 Results of Survey Sent to Local Veterinarians A brief summary, in table form, follows of the average answers to the rated questions, with 1 = Strongly Disagree, 2 = Somewhat Disagree, 3 = Neither Agree Nor Disagree, 4 = Somewhat Agree, and 5 = Strongly Agree: Average Score NHCACS Mission I feel that the mission of NHCACS is to prevent rabies. 4.5556 I feel that the mission NHCACS is to prevent pet overpopulation. 4.3846 I feel that the mission of NHCACS is to enforce the laws regarding animals. 4.8889 More can be done to enhance/increase adoptions at our shelter. 3.6667 More can be done to further enhance the relationship between NHCACS and the local veterinary community. 3.5556 Adoptions and Mandatory Spay/Neuter I would be willing to foster shelter animals for adoption in our hospital. 2.2174 I support NHCACS adoption services, including mandatory spay/neuter program. 4.6923 I think NHCACS should provide an on-site spay/neuter program. 3.3704 I would be willing to participate (either as a volunteer or for compensation) in a NHCACS on-site spay/neuter program. 3.5556 I support the concept of pediatric spay/neuter on puppies and kittens. 3.8148 I think more can be done to encourage adopters to establish a relationship with local veterinarians. 3.6296 Rabies Surveillance and Licensing NHCACS is doing a good job in rabies surveillance/prevention and county licensing program. 4.0800 I support the concept of low-cost or free rabies clinics sponsored by the county. 4.1481 I would be willing to participate in such clinics. 4.2222 More can be done to increase compliance with rabies vaccination and county licensing. 3.2963 Volunteering I support the efforts of groups such as The Cat Adoption Team and Friends of Felines in their efforts to reduce the overpopulation of animals in our community. 4.4231 I am aware that NHCACS has a volunteer program. 3.4444 I encourage our employees and/or clients to become involved in our volunteer program. 3.0370 I, as a veterinarian, am interested in volunteering at the NHCACS shelter. 2.8519 NC-2 Business Plan Management Academy for Public Health Page 40 of 51

The table below provides not only the average score, but also the detail on number of responses for each category: 1 2 3 4 5 Neither Total # Strongly Somewhat Agree or Somewhat Strongly Survey Average Disagree Disagree Disagree Agree Agree Responses Score NHCACS Mission I feel that the mission of NHCACS is to prevent rabies. 0 0 3 6 18 27 4.5556 I feel that the mission NHCACS is to prevent pet overpopulation. 0 0 3 10 13 26 4.3846 I feel that the mission of NHCACS is to enforce the laws regarding animals. 0 0 0 3 24 27 4.8889 More can be done to enhance/increase adoptions at our shelter. 1 1 9 11 5 27 3.6667 More can be done to further enhance the relationship between NHCACS and the local veterinary community. 1 1 11 10 4 27 3.5556 Adoptions and Mandatory Spay/Neuter I would be willing to foster shelter animals for adoption in our hospital. 11 3 5 1 3 23 2.2174 I support NHCACS adoption services, including mandatory spay/neuter program. 0 0 2 4 20 26 4.6923 I think NHCACS should provide an on-site spay/neuter program. 4 2 8 6 7 27 3.3704 I would be willing to participate (either as a volunteer or for compensation) in a NHCACS onsite spay/neuter program. 4 2 4 9 8 27 3.5556 I support the concept of pediatric spay/neuter on puppies and kittens. 2 4 4 4 13 27 3.8148 I think more can be done to encourage adopters to establish a relationship with local veterinarians. 1 2 10 7 7 27 3.6296 NC-2 Business Plan Management Academy for Public Health Page 41 of 51

Rabies Surveillance and Licensing NHCACS is doing a good job in rabies surveillance/prevention and county licensing program. 0 2 4 9 10 25 4.0800 I support the concept of low-cost or free rabies clinics sponsored by the county. 2 1 3 6 15 27 4.1481 I would be willing to participate in such clinics. 2 0 3 7 15 27 4.2222 More can be done to increase compliance with rabies vaccination and county licensing. 2 2 12 8 3 27 3.2963 Volunteering I support the efforts of groups such as The Cat Adoption Team and Friends of Felines in their efforts to reduce the overpopulation of animals in our community. 0 1 2 8 15 26 4.4231 I am aware that NHCACS has a volunteer program. 3 4 5 8 7 27 3.4444 I encourage our employees and/or clients to become involved in our volunteer program. 3 2 14 7 1 27 3.0370 I, as a veterinarian, am interested in volunteering at the NHCACS shelter. 6 2 11 6 2 27 2.8519 Comments from each section are summarized below by topic: NHCACS Mission What do you view as the mission of? Enforce laws pertaining to animal and human health and safety Protect the public from diseases or injuries incurred from animals. What most pet owners see is you simply give out citations and require fees for pets. They are not aware of what these services help to support. Saving animal lives, avoiding euthanasia whenever possible, placing adoptees, preventing pain, disease and suffering for shelter pets. Control the animals (dogs and cats) in NHC Public education. Control of overpopulation, dangerous & stray animals, enforcing rabies vaccinations. Control stray animals & prevent rabies Control animal population & enforce rabies laws Prevent pet overpopulation;- inform public of rabies awareness The top three mission statements {referring to rated questions} above sum it up. Public health/rabies prevention; population control; animal welfare protection NC-2 Business Plan Management Academy for Public Health Page 42 of 51

Prevent pet overpopulation Rabies prevention and awareness. Prevention of overpopulation. Consensus of the above {related to the rated questions} What could we do to enhance and/or increase adoptions at our shelter? Posters or flyers to be distributed to vet clinics, groomers, boarding kennels Nothing Speak to more young peoples which I know takes money & personnel. Pet of the week, adoption fairs, etc. Increase volunteer participation News media special interest stories Public adoptions, tours. Media exposure. More positive PR! More Sat. adopt-a-thons! Get on WRAL TV am show! Have flyers made for vet offices explaining who NHCACS is & what s required by the county, etc. More public awareness More publicity TV and radio; the Humane Society has a pet of the week; make a website with pictures of found/adoptable animals. More local community involvement Public awareness/education work with local media, open house, adopt-a-thons, fund raisers Improve shelter conditions, offer basic training classes, adoption fairs, advertising More advertising with pictures of animals on tv/paper/at clinics What steps can be taken to further enhance the relationship between NHCACS and the local veterinary community? Monthly or bi-monthly newsletter Nothing Decrease the need for veterinarians to require pet owners pay county fee at hospitals or decrease # of notices stating fee not paid when it has been paid for 3 years. Try to increase computer program to include greater than 1 year in fee payment. Clients tend to blame our receptionist for the mistake! Not from, don t know. This is a great idea. Perhaps see if local association interested in having a question & answer at first part of a meeting or even having a meeting at A.C. Doing a fine job Foster animals at local hospitals for adoption. Encourage local veterinarians to keep community service at dangerous dog meetings and special events I feel the relationship is good currently. I think it is good as far as my hospital is concerned Stop making us feel like tax collectors More meetings between the two groups to make communication easier. NC-2 Business Plan Management Academy for Public Health Page 43 of 51

Meetings, newsletters More interaction between veterinarians/animal control employees Keep communications and more of them Adoptions and Mandatory Spay/Neuter How do you view our adoption services, including our mandatory spay/neuter program? Excellent Good policies The spay/neuter program seems to work well however, I do feel that several recent adopted animals are placed in homes without means for sufficient care. IE unaware of financial needs to care for pet HWP/vaccines, etc. Very positive Excellent step with mandatory spay/neuter before adoption. I feel it has greatly increased adoptees contact with DVM & benefits animal and client. Great follow-up from the majority of animals we see. Animals I ve seen from shelter seem to find good homes I believe it works well, yet most adopters never come back so it may be better to interview them As a citizen, I haven t heard much about it. I only hear about it as a vet. Good Seems to be working Great program seems to be working Spay/neuter program is great but an onsite facility would be much better! Fairly successful Necessary Services are lacking people are confused about policies Beneficial Questionable the very young ---> future What additional steps can be taken to encourage adopters to establish a relationship with local veterinarians? 15 minute counseling/written handout given by shelter officers to adoptees explaining necessary vaccines/products (HW Prevention flea control) needed to maintain healthy pet. Increased awareness/information given or discussed with new pet owners about the need for continued care for their new pet. Require heartworm testing for dogs, FCLV/FIV testing for cats these services should not be offered at the animal shelter. That s up to us as veterinarians. If an adoption counselor volunteer were ever found that would be a wonderful addition. Provide a list of area vet clinics, hrs, location NC-2 Business Plan Management Academy for Public Health Page 44 of 51

Establish a program to ensure every animal sees a vet free exams, rabies vacs, etc. I find that all they want is the spay/neuter and do not understand the responsibility of pet ownership lifelong. If shelter workers would mention to potential adopters about what vacs are needed, heartworms, etc. Educate adopters in proper care for animals before adopted I am not sure what is being done now new adopters should be counseled about vaccines, heartworm preventative and flea preventative Educate adopters better on basic and preventive health care for animals Client education on proper animal care Allow them to chose a vet & pick up animal there. Tell them at adoption time what services are still needed and approximately what time they are due More communication Rabies Surveillance and Licensing What can we do to increase compliance with rabies vaccination and county licensing? Poster re: County regulations/fines to be imposed post in public places Increase exposure of county laws IE advertisements other than newspaper radio/tv. Offer rewards to people who report unlicensed or unvaccinated animals much as rewards are offered with no questions asked for turning in drug dealers. More can be done but it takes more money & more manpower neither of which the county is going to provide. Persons who cannot/will not pay for license will forego rabies vaccination for the pet as it will be reported this is counterproductive to rabies control efforts. Awareness by advertising Revise the licensing system. Too confusing. Consider annual rabies vaccinations. As far as low-cost clinic, I feel that if a person can t afford a rabies vaccination they can t afford a dog. We have clients that get the low cost vaccination who have more income than you or I. Increase fines Make more people aware of consequences of not vaccinating. Education is the key. Issue more warnings and fines Educating the public Public education radio/tv/paper announcements NC-2 Business Plan Management Academy for Public Health Page 45 of 51

Additional Comments I feel NHAC does a spectacular job for our community keep up the good work! Related to volunteering: Shame on me for not thinking to do so before now. Related to supporting CAT & Friends of Felines, etc.: Strongly agree and disagree the last 2 kittens with ring worm I had in here were CAT adoptees and I have mixed feelings about releasing domestic cats to live a feral life, but every cat spayed is a good thing. I don t wish to work for the NHCACS as I am not in agreement with many of the NHCACS policies and the regulations and the implementation of the regulations and the very poor bookkeeping-computer records of the NHCACS. Overall the relationship between NHCAC and myself has been positive. I have respect for your positions, and support the program as a whole. My experience with CAT cats has been less than positive the majority are being adopted out with visible clinical signs of ringworm and the owners aren t being told about it. Related to support of pediatric spay/neuter: Young males whose testicles have not dropped yet should not be subjected to longer, more complicated surgical procedures. Neutering can wait until both testicles have dropped. If owners cannot afford a rabies vaccination they do not need an animal to care for. The ones I ve seen at rabies clinics are the ones that can afford a rabies easily, anyway I was not aware that there was a volunteer program at the animal shelter get the word out! I get asked every day by clients where can they volunteer! Also encourage potential adopters to acquire a pet that fits their life style this is a huge problem college students in an apartment adopting a puppy that s going to be 80+ lbs, etc. You all do a wonderful job!! Keep it up! Related to willingness to be a foster shelter: Inadequate kennel space. Related to pediatric spay/neuter: Unnecessary anesthetic risk compared to 6-month old. Also, masking of isoflurane exposes operating room personnel (Staff) daily potential LIABILITY for NHCACS!!! If they sue, they will win. Keep up the good work! NC-2 Business Plan Management Academy for Public Health Page 46 of 51

Appendix 7a NHCHS Statistics Note: Euthanasia statistics are not available for the Humane Society. New Hanover Humane Society Adoption Statistics 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 1995 1996 1997 1998 1999 2000 2001 Animals Accepted Animals Adopted Appendix 7b NHCACS Statistics NHCACS Adoption Statistics 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500-1995 1996 1997 1998 1999 2000 2001 Animals Accepted Animals Adopted Animals Euthanized NC-2 Business Plan Management Academy for Public Health Page 47 of 51

Appendix 8 GANTT Chart Sterilization Protects Animals and You (S.P.A.Y.) Project GANTT Chart Year 1 Year 3 Year 4 Presentation to Health Director, Board of Health, and County Commissioners and project Approval 3 Months (6/02 9/02) Construction, Inspections, Equipping, Staffing of facility Recruitment of Veterinarians for Spay/Neuter Surgery Recruitment of Area Animal Groups into Coalition Develop and Place Phase I Marketing Materials 12 Months (8/02 8-03) 4 Months (2/03 6/03) 6 Months (6/02 12/02) 7 Months (3/03 8/03) Open Phase I (10/03) Meet All Regulatory Requirements for Phase II Operations Recruit Additional Veterinarians for Spay/Neuter Surgery 8 Months (10/03 8/04) 6 Months (12/3 5/04) Develop and Initialize Phase II Marketing 4 Months (6/04 10/04) Open Phase II operations (10/04) NC-2 Business Plan Management Academy for Public Health Page 48 of 51

Appendix 9.. Management Structure Health Department - Public Health Division Manager ( Director) Animal Control Supervisor Administrative Support Supervisor Shelter Supervisor Spay/Neuter Operations Director Animal Control Officers Administrative Support Technicians Shelter Attendants Veterinarians Fiscal Support Technicians Shelter Volunteers Represents Proposed Operations NC-2 Business Plan Management Academy for Public Health Page 49 of 51

Appendix 10 Internet Resources Resource Internet Address Azalea Dog Training Club Brunswick County Animal Services Carolina Canines for Service Cumberland County Animal Control New Hanover Humane Society PAWS Place San-Lee Humane Society SOAR Fiends of Felines Pet Finder National Breed Club Rescue Network NC Equine Rescue League North Shore Animal Rescue League American Veterinary Medical Association http://adtc.wilmington.org http://brunswickanimal.org http://www.carolinacanines.co1m http://www.co.cumberland.nc.us/ccac/index.html http://humanesociety.wilmington.org http://www.pawsplace.org http://www.sanleehumanesociety.org http://soarsp.wilmington.org http://home.ec.rr.com/friendsoffelines http://www.petfinder.org http://www.akc.org/breeds/rescue.cfm http://www.ncerl.com http://www.nsal.org http://www.avma.org/care4pets/default.htm NC-2 Business Plan Management Academy for Public Health Page 50 of 51

Appendix 11 Editorial from the Wilmington Morning Star January 7, 2002* * Note that this editorial appeared as a result of Jean McNeil s presentation to the Board of Health regarding our upcoming proposal. A Wilmington Morning Star reporter did a small story on the idea and the editorial, unsolicited as it was, appeared in the paper as a result of that story. We view this as strong support for our project, as a win-win situation for our community and its animal population. NC-2 Business Plan Management Academy for Public Health Page 51 of 51