People are food as are little dogs...to bears. If you remove the food, then the OP isn't at his house anymore.
I'd bet good money at this point that this bear hasn't been eating people. It's been eating dogfood that's left out or trash or something of that nature. If you can eliminate stuff like that, you'll generally have fewer problems with animals. They have no reason to be there other than just passing through. I've seen probably ten or twelve in the wild during the last fifteen years of my life. Just hiking along and minding my own business I've accidentally gotten very close to five or six of them. In all cases, as soon as they've noticed me, they either move along and mind their own business or flat out run away as fast as the can.
Not to say that some animals aren't in need of being shot. Some are and the one that the OP has run into seems like it might be in that category. But sometimes you can do things to minimize the danger of confrontation.
Personally, I'd zero for heavy 7.62x39 ammo with the irons if possible. If not, put the scope on the lowest power. Standard 123 grain stuff is a little light IMO, but I'd use it if that's what I had when things went bad. I know of people who've killed them with .357's during hunting season, so repeated hits from 7.62x39 should do the job.
Call the PGC and report the bear - they do pride themselves on handling such problems. At least give them the chance to trap it and get it on record that there's a dangerous bear in the area.
Remove any food that you might accidentally be leaving out. Encourage neighbors to do the same before someone gets killed, because bears and humans shouldn't really mix any more than necessary.
Keep the rifle on you when you take your dogs out at night and use it if you feel the need to. I'd shoot a dangerous bear without hesittion rather than let it harm me or other people in the area.
Last, remember that bears can be killed. They're just bears.