Pomona Picks Animal Care Provider With IRS Troubles

The city is drawing up an animal control services contract to replace the nonprofit Pomona Valley Humane Society with a private company headed by a man who says his last venture was shut down by the Internal Revenue Service over nonpayment of payroll taxes.

Meanwhile, leaders of the humane society say the organization’s services are being terminated because of a vendetta that began a year ago when an animal control officer who has friends in Pomona city government was fired.

Pomona Councilman C. L. (Clay) Bryant denied any vendetta but said that when he heard about alleged verbal abuse of employees and other problems at the humane society he tried to persuade the organization to fire its director.

The council has said that its decision a month ago to contract with another company was based on a rate increase.

This week the council refused a request by Mayor Donna Smith for an investigation into the background of Philip Steward, who plans to create a company called Companion Animal Care Center to provide the city with animal control services. Smith complained that the city knows little about Steward.

It was later learned by a reporter that an organization in Colorado headed by Steward shut down because of tax problems. A spokeswoman for the IRS in Denver said tax liens totaling more than $74,000 were filed against the organization, but she could not provide other details.

Steward said National Resource Development Assn., which he started in 1985 to raise money for animal welfare agencies, was closed in February for falling behind in payroll tax payments to the IRS. Steward attributed the problem to errors by the organization’s bookkeeper but said he is being held personally liable for $24,000 in tax payments.

In addition, Steward said he is being sued by the Colorado Humane Society for misuse of a membership list, an allegation he denies. A spokesman for the society would not comment on the suit. The spokesman said Steward, through a telemarketing campaign, raised more than $300,000 for the society over two years, but the relationship soured.

His difficulties in Colorado, Steward insisted, should not affect his plan to take over animal control services in Pomona.

Steward, 41, worked for the Pomona Valley Humane Society as an animal control officer 15 years ago. He was director of the Sacramento Society for the Prevention of Cruelty to Animals for a year and worked as a firefighter in Colorado and as a field representative for the American Humane Assn. in Denver.

In a proposal approved by the council a month ago, Steward offered to incorporate animal control services into a one-stop discount pet store, offering dog and cat food, dog-grooming, pet taxis, veterinary treatment and other services.

Smith said that the only information given to the council about Steward consisted of a two-page resume and that the city should have investigated further before agreeing to give him a contract worth $390,000 a year.

But Bryant said Monday night: “We’ve been checking his references and so far they are immaculate.” Informed by a reporter the next day about Steward’s problems with the federal government, Bryant said he wasn’t concerned because many people run into trouble with the IRS.

What is important, Bryant said, is that by contracting with Steward’s firm instead of the humane society, the city can save about $80,000 a year.

The city began looking for alternatives after the humane society raised its rates in July by $66,000 a year. The society, which serves seven cities, offered to continue serving Pomona in fiscal 1989-90 at a cost of $294,910, plus $179,000 in revenue from dog licenses and other fees.

The city has so far refused to pay the increase. The humane society has continued to provide service under the old rate but has said it will stop serving Pomona Dec. 31 unless the city agrees to pay the higher amount retroactively. The cutoff could create a problem, because Steward says his agency will not be able to take over animal control until March 1 at the earliest.

The council rejected a suggestion to use the county Department of Animal Care and Control, which would cost Pomona less than the humane society, because Pomona residents would have to travel 20 miles to a Baldwin Park pound to claim stray animals.

Steward proposed to provide animal control services for $210,000, plus $180,000 in dog licenses and fees. He requested a third of the fee in advance to hire and train employees, buy equipment and remodel facilities. Steward said he plans to establish his animal shelter, pet store and clinic at the closed Sears service center south of the Indian Hill Mall but will need a zone change and conditional-use permit.

Bryant said Steward’s plan is cheaper and will provide better service than the humane society.

Humane society officials, however, accused Bryant of retaliating because the society refused to fire William Harford, the organization’s executive director for 10 years. Harford said he fired Kathryn Gay Varner, a friend of Bryant’s, as a humane officer last year. He said Varner responded with a scathing eight-page letter that made untrue accusations.

Harford said Bryant sent copies of Varner’s letter to the humane society board and demanded management changes. The reason for the firing has not been made public. Varner’s accusations reportedly involved sexual discrimination and other abuse of employees.

Varner, who now works as an accounting clerk for the city, said that although she is a friend of Bryant and of acting City Administrator Tom Fee, she has not used those friendships to punish the humane society. “Mr. Harford is angered that he is losing a million-dollar contract (over years) and he is looking for someone else to blame it on,” she said.

Terry Lepper, a La Verne veterinarian who is president of the humane society, said the board decided that Harford had acted properly in firing Varner.

Nevertheless, he said, Bryant threatened to cut off Pomona’s financial support. In a letter to the president of the society a year ago, Bryant said: “I intend to pursue the subject of a change in management personnel and am ready to ask the Pomona City Council to withhold any further contributions to the humane society until the change is effected.”

Lepper said it was clear to the board that the price for retaining a contract with Pomona was to dismiss Harford. He said other cities served by the society are pleased with its management and have warned that they will terminate their contracts if Harford is fired to satisfy Pomona.

Harford said the humane society, which has 27 employees and has served Pomona for 40 years, will be faced with a severe revenue loss if it loses the contract. He said the agency devotes nearly half its animal control service to Pomona and has been counting on receiving a corresponding amount of revenue. The society also serves Claremont, La Verne, San Dimas, Chino, Montclair and Diamond Bar.

Pomona officials said the humane society changed its rates this year to charge Pomona more per capita than the other cities. Pomona is charged more, Harford said, because it receives more service. Last year, for example, the society picked up 13,000 dogs and cats in Pomona, which has 120,000 residents, and only 1,800 dogs and cats in Claremont, which has a population of 42,000.

Harford said that many low-income Pomona residents are unable or unwilling to spend money to have their pets neutered or buy dog licenses. In fact, he said, when animal control officers have asked some Pomona residents to buy $20 dog licenses and pay $10 late fees, the residents often handed over the dogs instead.

Harford said the humane society will continue to respond to calls about injured animals but will stop providing other services to Pomona on Dec. 31 unless an agreement is reached. The city has not asked the humane society to continue service into next year, Harford said.

But Bryant said the city expects the humane society to continue providing service until it is replaced. The society is obligated to serve Pomona under terms of an agreement that provided city land for the animal shelter 40 years ago, he said. Harford disputed a contention by Bryant that the city could reclaim the property.

Although the council voted last month to hire Steward’s Companion Animal Care Center, the contract has not yet been written and signed. Councilman Tomas Ursua said details of the agreement will be disclosed at next week’s council meeting.

BACKGROUND Conflict between the Pomona City Council majority, led by Councilman C. L. (Clay) Bryant, and Mayor Donna Smith over the rapid changes in city government have produced quarrelsome and lengthy council meetings--this week’s began at 7 p.m. Monday and ended shortly before 3 a.m. Tuesday--and have divided the community. The council fired the city administrator and police chief and accepted the resignations of six other department heads since the majority took control in April.