CC 2018-08-14_09b Amendment_Animal Services Shelter
MEMORANDUM
TO: CITY COUNCIL
FROM: JAMES A. BERGMAN, CITY MANAGER
SUBJECT: CONSIDERATION OF AMENDMENT NO. 1 TO AGREEMENT FOR
COUNTYWIDE ANIMAL SERVICES SHELTER
DATE: AUGUST 14, 2018
SUMMARY OF ACTION:
Reestablish participation in the Countywide animal services shelter project.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Participation in the construction of a new animal services shelter will require annual
payments of approximately $65,000 to $87,000 for the next 25 years. This will be in
addition to the City’s yearly contributions for animal services provided by the County of
San Luis Obispo which is approximately $70,000.
RECOMMENDATION:
It is recommended that the City Council approve and authorize the City Manager to
execute Amendment No. 1 to the Agreement for Allocation of Construction and
Financing Costs for a Countywide Animal Services Shelter.
BACKGROUND:
Historically, all seven incorporated cities in the County have contracted with the County
for animal services and have paid proportional rates based upon use. The County
currently operates a single animal shelter to house and care for stray and owner
relinquished animals in San Luis Obispo County. In April 2015, the County Board of
Supervisors directed County staff to replace the animal shelter with a new, upgraded
and much larger facility, and to have each city in the County pay their proportionate
share of the cost of the new shelter. The City of Arroyo Grande’s proportional share is
8.39 percent.
On February 28, 2017, after initial negotiations were completed with the County, the
Council approved an Agreement for the parties to agree to a cost-sharing framework for
the new shelter. The Agreement was ultimately approved by all seven cities and the
County.
On October 30, 2017, the cities of Paso Robles and Atascadero withdrew from the
Agreement due to potential alternative options available to both cities and concerns with
the terms of the Agreement. The absence of both cities from the cost-sharing framework
Item 9.b. - Page 1
CITY COUNCIL
CONSIDERATION OF AMENDMENT NO. 1 TO MEMORANDUM OF AGREEMENT
FOR COUNTYWIDE ANIMAL SERVICES SHELTER
AUGUST 14, 2018
PAGE 2
was determined to have a significant financial impact to the County and the remaining
cities participating in the shelter. On October 24, 2017, in anticipation of the withdrawal
from the agreement by Paso Robles and Atascadero, the Council directed staff to
withdraw from the Agreement should the withdrawal of cities cause the City’s
proportional share to exceed a specified threshold.
ANALYSIS OF ISSUES:
Since the decision last October by the cities of Paso Robles and Atascadero to
withdraw from the Countywide Agreement, Paso Robles and Atascadero and the
County have worked to achieve certain modifications to the countywide shelter
agreement that would help alleviate concerns and allow both cities to participate in a
modified Agreement. Those discussions have led to a revised proposal from the County
with the following changes:
• Reduce the one-time project costs to be charged to the cities by $1 million;
• Work to achieve reductions in animal intakes and animal nights at the shelter, of
such magnitude that they would achieve reductions in cost averaging 5% per
year for the first five years of operation, after controlling for other factors that
would also increase costs;
• Share governance of the shelter so that the cities will function as full partners
rather than customers of the County
The cities of Paso Robles and Atascadero and the County have already approved the
modified agreement and the other cities are placing this amendment on their Council
agendas in late July and August. By taking this sequenced approach, all participants
can be assured that they are considering an agreement that Atascadero, Paso Robles,
and the County have already committed to.
The proposed amendment to the Agreement may reduce costs for the City for the
construction of the new shelter. The estimated savings or additional costs from the
original agreement will depend on interest rates, actual savings realized, and the actual
animal intake reductions in the city. Amendment savings to the City at today’s interest
rates are estimated to be about $1,800 annually over a 25-year period.
The cost of borrowing the money for the shelter is a key component of cost control due
to the large amount being borrowed and the 25-year horizon to pay-off the financing.
Although the efforts of Paso Robles and Atascadero have resulted in the County
assuming an additional $1 million of the project, in the intervening 10 months interest
rates for Municipal Bonds has increased about 50 basis points and are not expected to
decrease in the near future. It is possible that any savings to the cities by the County
paying the additional $1 million will be negated by rising interest rates. As was a
concern in October - time is of the essence and the faster the County can secure
financing the better the chances to avoid higher costs due to rising interest rates.
Item 9.b. - Page 2
CITY COUNCIL
CONSIDERATION OF AMENDMENT NO. 1 TO MEMORANDUM OF AGREEMENT
FOR COUNTYWIDE ANIMAL SERVICES SHELTER
AUGUST 14, 2018
PAGE 3
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve and authorize the City Manager to execute Amendment No. 1 to the
Agreement for Allocation of Construction and Financing Costs for a Countywide
Animal Services Shelter;
2. Do not approve and direct staff to explore providing its own animal shelter and
field services as required by State law; or
3. Provide direction to staff.
ADVANTAGES:
Executing Amendment No. 1 will allow the City to be a participant in a new animal
shelter and ongoing animal shelter services.
DISADVANTAGES:
Executing Amendment No. 1 will commit the City to annual payments in the range of
$65,000 to $87,000 for the next 25-years.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2. At the time of report publication, no comments
have been received.
ATTACHMENT:
1. February 2017 Agreement
Item 9.b. - Page 3
Item 9.b. - Page 4
AMENDMENT NUMBER 1 TO THE
AGREEMENT FOR ALLOCATION OF CONSTRUCTION AND FINANCING COSTS FOR AN
ANIMAL SERVICES SHELTER AT 865 OKLAHOMA A VENUE IN SAN LUIS OBISPO,
CALIFORNIA, BETWEEN THE CITIES OF ATASCADERO, ARROYO GRANDE, GROVER
BEACH, MORRO BAY, PASO ROBLES, PISMO BEACH, AND SAN LUIS OBISPO AND THE
COUNTY OF SAN LUIS OBISPO
THIS AMENDMENT ("Amendment"), dated for reference as of June 5, 2018, to the Agreement (defmed
below), is entered into by and between the COUNTY OF SAN LUIS OBISPO (the "County"), and the
cities of ATASCADERO, ARROYO GRANDE, GROVER BEACH, MORRO BAY, PASO ROBLES,
PISMO BEACH, AND SAN LUIS OBISPO (each, a "City," and collectively, the "Cities," and, together
with the County, the "Parties", or individually "Parfy").
RECITALS
The County and each of the Cities previously entered into an Agreement ("Agreement") for allocation of
construction and financing costs for a new Animal Service Shelter at 865 Oklahoma A venue in San Luis
Obispo, California ("Shelter" or "Project"). The Agreement was dated as of February 1, 2017.
The Parties acknowledge the benefit of collaborative and joint efforts in constructing, financing, and
managing the Shelter.
The Parties enter into this Amendment to memorialize ·changes regarding the Parties' participation and
corresponding obligations with regard to the management and allocation of construction and financing
costs for the Shelter. ·
This Amendment memorializes the Parties' joint commitment to collaboratively address and resolve the
issue of rising . costs for animal . services. The Parties recognize that the operating philosophy and
operating model-by which the shelter has been operated is not the model that will best serve the Parties
going forward.
The model going forward views all parties as partners, and is based on the needs of all Parties, with all
Parties. being incentivized to find creative way~ to reduce the costs of those services. The model going
forward also demonstrates the County's commitment to seeking opportunities to be more nimble, and
open to change.
The Agreement and this Amendment represent the entire agreement between the Parties.
NOW, THEREFORE, the Parties agree as follows:
1. Recitals.
The above Recitals are true and correct.
2. Capital and Financing Costs
a) The Project construction costs to be shared by the Parties were estimated at the time the
Agreement was signed to be Thirteen Million One Hundred Sevency Six Thousand Five Hundred
Dollars ($13,176,500). Pursuant to this Amendment, the County shall reduce the costs allocated
-to the Cities as follows:
i. The County will solely pay the first one million dollars ($1,000,000) of the project,
moving $1,000,000 in shared Estimated Project Construction Costs in Exhibit D to
eounty-Only Costs.
Page 1 of 4
Item 9.b. - Page 5
11. The shared Estimated Project Construction Costs will thereby be reduced to Twelve
Million One Hundred Seventy Six Thousand Five Hundred Dollars ($12,176,500).
b) The County further agrees to pass through any financing costs to the Cities with no additional
points, administrative fees, or charges.
c) After .all construction and related financing costs are retired, the Parties then participating in the
Shelter program may continue their joint use of the Shelter for the life of the building, at no
additional capital or financing costs.
3. Animal Shelter Operations
a) Shared Governance. The Parties agree that further clarification of the intended shared governance
model is appropriate. The intent of the Operations Committee and the Executive Board created
by the Agreement is to ensure all Shelter policies and operations reflect the needs of all Parties
and equitably benefit all Parties. The Operations Committee and the Executive Board are
authorized to ensure the policies and operations of field services policies and operations also
reflect the needs of all Parties and equitably benefit all Parties. Any conflicts that cannot be
successfully resolved by the Operations Committee or the Executive Board will be addressed by a
5-person ad hoc committee, comprised of County Supervisors and City Mayors.
b) Targeted Reductions in Operation Costs. The County agrees to adopt goals and take action steps
to reduce animal intakes and total animal nights by an average of five percent (5%) per year for
the next five (5) years. The resulting cost savings will be shared by all parties in accordance with
the Animal Care and Control Services contract in place at the time. The targeted reductions are to
be accomplished primarily by reducing the need for services and the costs of those services, not
by reducing or denying needed services. Steps undertaken may include, but are not limited to:
1. Targeted education campaigns
ii. Pro-active and targeted programs such as catch, spay/neuter, and release programs
m. Pro-active licensing and licensing enforcement
iv. Community-based approaches that involve the community in activities and donations
v. Active pursuit of grants and donations
vi. User fees set at a strategic level to minimize subsidy from general taxes.
c) Cost Benefit Analysis. The County agrees to undertake a cost/benefit analysis related to services
and operations of the Shelter and present the findings to the Operations Committee. The County
will also propose needed actions to the Operations Committee and, as necessary, the Executive
Board, and implement changes identified and agreed to by the Parties to achieve reductions in
operating costs.
4. Client Services Approach
a) Working collaboratively with the Operations Committee and Executive Board, the County agrees to
adopt a client-oriented services approach for Shelter operations. Elements of this approach may
include, but are not limited to:
i. Mobile spay/neuter programs
11. Pet owner education programs
iii. Outreach to constituents
1v. Offering micro-chipping
5. Kennel Permits
a) The County will not issue kennel permits inside city limits without written approval of that city.
6. In the event of a conflict between the terms of the Agreement and the Amendment, the terms of this
Amendment shall prevail.
Page 2 of 4
Item 9.b. - Page 6
IN WITNESS WHEREOF, by their execution below, the Parties agree to be bound by the provisions of
this Amendment, and the Board of Supervisors of the COUNTY OF SAN LUIS OBISPO has authorized
and directed the Chairperson of the Board of Supervisors to execute this Agreement for and on behalf of
the County, and the Cities of ATASCADERO, ARROYO GRANDE, GROVER BEACH, MORRO
BAY, PASO ROBLES, PISMO BEACH, AND SAN LUIS OBISPO have caused this Agreement to be
subscribed by each of their duly authorized officers and attested by their Clerks.
Dated: COUNTY OF SAN LUIS OBISPO ------
Clerk of the Board
Dated: CITY OF ATASCADERO ------
City Clerk By:
Dated: CITY OF ARROYO GRANDE ------
City Clerk By:
Dated: CITY OF GROVER BEACH ------
City Clerk By:
Dated: CITY OF MORRO BAY ------
City Clerk By:
Dated: CITY OF PASO ROBLES ------
City Clerk By:
Dated: CITY OF PISMO BEACH ------
City Clerk By:
Page 3 of 4
Item 9.b. - Page 7
Dated: CITY OF SAN LUIS OBISPO ------
City Clerk By:
Page 4 of4
ATTACHMENT 1
Item 9.b. - Page 8
AGREEMENT FOR ALLOCATION OF CONS1RUCTION AND FINANCING COSTS FOR AN
ANIMAL SERVJCES SHELTER AT 865 OKLAHOMA A VENUE IN SAN LUIS OBISPO,
CALIFORNIA, BETWEEN THE CITIES OF ATASCADERO, ARROYO GRANDE, GROVER
BEACH, MORRO BAY, PASO ROBLES, PISMO BEACH, AND SAN LUIS OBISPO AND THE
COUNTY OF SAN LUIS OBISPO
\
THIS AGREEMENT, dated for reference as of February 1, 2017 (the "Agreement"), is entered into by
and between the COUNTY OF SAN LUIS OBISPO (the "County"), and the cities of ATASCADERO,
ARROYO GRANDE, GROVER BEACH, MORRO BAY, PASO ROBLES, PISMO BEACH, AND
SAN LUIS OBISPO (each, a "City," and collectively, the "Cities," and, together with the County, the
"Parties", or individually "Party'').
RECITALS
The County and. each of the Cities are parties to a separate but similar Contract for Animal' Care and
Control Services ("Services Contract'') effective as of July 1, 2016 and expiring, unless sooner
terminated, on June 30, 2019, pursuant to which the County provides animal control services throughout
San Luis Obispo County, including within the jurisdictional boundaries of each of the Cities.
In conjunction with and pursuant to the Services Contract, the County operates an existing Animal
Services Shelter located at 885 Oklahoma A venue in San Luis Obispo, California. Owing to the
obsolescence of the existing shelter, it is necessary to construct a new Animal Services Shelter ("Shelter"
or "Project'') as generally described in Exhibit A, at an address preliminarily identified as 865 Oklahoma
Avenue, and as generally depicted in Exhibit B ("Shelter Property").
The Parties acknowledge the benefit of collaborative and joint efforts in constructing the Shelter.
The Parties enter into this Agreement to memorialize their participation and corresponding obligations
with regards to the allocation and repayment of the construction and financing costs for the Shelter.
NOW, THEREFORE, the Parties agree as follows:
1. Recitals.
The above Recitals are true and correct.
2. Estimated Project Construction Costs.
a) The Project construction costs, excluding the portion of the Oklahoma Ave./Utility Extension
costs to be borne solely by the County, and excluding the County-only costs of the remaining
depreciation value of the existing facility, demolition of the existing facility, and land costs, and
excluding costs to be shared proportionally only by the Cities, for the Shelter are estimated at this
time to be Thirteen Million One Hundred Seventy Six Thousand Five Hundred Dollars
($13,176,500) as shown in Exhibit D (the "Estimated Project Construction Costs"). The
Estimated Project Construction Costs include expenses for soft costs, such as architectural and
engineering services; County costs for administration, project management service,
environmental review, planning and building fees, and inspections; and hard costs, such as actual
construction costs.
b) The Estimated Project Construction Costs shall only include those expenses and costs generally
descn'bed above, which are incurred by the County specifically for the Shelter construction
project. Notwithstanding anything to the contrary below, the total Project Costs, as defined in
Paragraph 5(a) below shall not exceed Fourteen Million Five Hundred Thousand Dollars
($14,5-00,000) without a written amendment to this agreement signed by all Parties.
Page 1 of 13
Item 9.b. - Page 9
c) The Project will be managed as a "Design/ Build" project, as approved by the County of San
Luis Obispo Board of Supervisors on April 12, 2016.
3. Excess Construction Costs
a) Prior to Authorization for Construction to Begin ("Construction Contract'').
(i) If the County receives information in the design or bidding process indicating that the
Estimated Project Construction Costs for the Shelter will exceed $13,176,500 by less than ten
percent (10%), the County shall provide written notice to each member of the Executive
Board (as defined in Section 9(b) below) of the revised estimated construction costs with.in a
reasonable period of time before such additional construction costs are incurred. The
Executive Board shall either approve or disapprove the additional construction costs, if any,
by written notice to the County, delivered within ninety (90) days after receipt of the
County's notice of the revised construction costs. If any Executive Board member fails to
timely approve in writing, the Executive Board shall be deemed to have not approved and the
County shall promptly confer with all Cities regarding the additional construction c9sts and
any means by which such additional construction costs may be minimized.
(ii) If the County receives information as part of the design or bidding process indicating that the
Estimated Project Construction Costs for the Shelter will exceed $14,500,000, the County
shall immediately provide written notice to each City of the revised estimated construction
costs ("Excess Construction Costs") and confer with the Cities as to whether to authorize the
Construction Contract or reject all bids. Each City shall either approve or disapprove the
Excess Construction Costs resulting in Estimated Project Construction Costs exceeding
$14,500,000 by written amendment delivered to the County with.in ninety (90) days after
receipt of the County's written amendment. If the decision is to authorize the contract, the
County shall prepare and deliver to the Cities a written amendment to this Agreement
amending Section 2(b) to increase the not-to-exceed amount. If any City fails to timely ·
approve in writing, the City shall be deemed to have disapproved. Should a City(ies)
disapprove the Excess Construction Costs, the County will immediately confer with all Cities
in an attempt to reconcile the disagreement. Should the Parties be unable to reach agreement,
the measures shall be taken to reduce the costs below $14,500,000 and in no such event shall
the Parties be liable for Excess Construction Costs absent a written amendm~nt to this
agreement.
(iii) If a City chooses to not participate in the shelter construction at that time, the City is allowed
to withdraw from this agreement and pay its proportionate share of all costs incurred as of the
date of withdrawal. The date of withdrawal shall be defined as the date that written notice is
received by the County of the City's desire to withdraw due to Excess Construction Costs
beyond amounts previously agreed. The County will recalculate future payments of the
remaining Parties using revised percentages of shelter use with the methodology in Section
6(a).
b) Authorization for Construction to Begin
(i) Upon County's authorization for Construction to begin, total costs for the Project including
any incurred or future hard costs, soft costs, contingencies, and other miscellaneous costs
related to Shelter construction will be added to the estimated final construction costs
("Estimated Final Construction Costs"). The Estimated Final Construction Costs will not
exceed the Estimated Project Construction Costs (or Excess Construction Costs), unless
agreed to in writing by all of the Parties in a written amendment to this Agreement. Should
the Parties be unable to reach agreement, measures shall be taken to reduce the costs below
Page 2 of 13
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Item 9.b. - Page 10
$14,500,000 and in no such event shall the Parties be liable for Excess Construction Costs
absent a written amendment to this agreement.
(ii) If a City chooses to not participate in the shelter construction at that time, the City is allowed
to withdraw from this agreement and pay its proportionate share of all costs incurred as of the
date of withdrawal. The date of withdrawal shall be defmed as the date that written notice is
received by the County of the City's desire to withdraw due to Excess Construction Costs
beyond amounts previously agreed. The County will recalculate future payments of the
remaining Parties using revised percentages of shelter use with the methodology in Section
6(a). ·
c) After Authorization for Construction to Begin
(i) If the County becomes aware, after its authorization for Construction to begin, that the costs
of construction will exceed the Estimated Final Construction Costs due to unforeseen or other
conditions,_ the County shall provide written notice, to each City of the revised estimated
construction costs within a re?Sonable period of time before such additional construction
costs are incurred. Each City shall either approve or disapprove the additional construction
costs, if any, by written notice to the County, delivered within ninety (90) days after receipt
of the County's notice of the revised construction costs. If any City fails to timely approve in
writing, the City shall be deemed to have not approved and the County shall promptly confer
with all Cities regarding the additional construction costs and any means by which such
additional construction costs may be minimized. No additional construction costs shall be
incurred that exceed $14,500,000 without a written amendment signed by all the Parties.
Should the Parties be unable to reach agreemen~ measures shall be taken to reduce the costs
below $14,500,000 and in no such event shall the Parties be liable for Excess Construction
Costs absent a written amendment to this agreement.
(ii) If a City chooses to not participate in the shelter construction at that time, the City is allowed
to withdraw. from this agreement and pay its proportionate share of all costs incurred as of the
date of withdrawal. The date of withdrawal shall be defmed as the date that written notice is
received by the County of the City's desire to withdraw due to Excess Construction Costs
beyond amounts previously agreed. The County will recalculate future payments of the
remaining Parties using revised percentages of shelter use with the methodology in Section
6(a).
4. Financing
a) County Advance of Funds. The County shall advanqe funds required to pay for the costs of
construction of the Shelter. The County intends to fmance the funds it advances, including
County in house soft costs .
. i) County Sole Discretion as to Financing Terms. The County, at its sole discretion, shall
determine fmancing terms based on market rates and terms available at the time of fmancing.
The anticipated financing interest rate is estimated to be between 3.5%-5%, based on a 25-
year term, see Exhibit D. The County may finance the Estimated Final Construction Costs
(hard, soft, design, etc.) for the Shelter in addition to customary out of pocket costs to obtain
:fin~cing, if any. The County may choose to provide in-house financing, provided the
interest rate charged to the Cities does not exceed commercially available rates for like
projects and terms of financing are equal to or more favorable to Cities than terms otherwise
available to the County.
(1) The County will provide notification to the Shelter Executive Board of its intentions
regarding external or in-house financing at least 30 days prior to taking action on
Page 3 of 13
Item 9.b. - Page 11
financing. Said notification will include final estimates of financing costs and
anticipated interest rates.
(2) Should the Cities desire to have costs identified as "Costs Shared Proportionally by
Cities Only" in Exhibit D included in any financing, the Cities shall provide written
notification to the County by October 31, 2017. Should all Cities fail to provide
written notice, the "Costs Shared Proportionally by Cities Only" will be proportionally
allocated to each of the Cities as shown in Exhibit C and billed accordingly, with a
paynlent due date of January 1, 2018.
ii) Estimated Project Financing Costs. The :financing costs are estimated to range from
$7,556,392 to $11,618,328, as shown in Exhibit D, depending on the applicable interest rate
and whether there are out of pocket costs to obtain financing ( collectively "Estimated Project
Financing Costs"). If the actual interest rate is higher or lower than that estimated on Exhibit
D, the actual financing costs will vary.
5. Total Estimated Project Costs/fatal Project Costs.
a) The Estimated Final Construction Costs and the Estimated Project Financing Costs are jointly
referred to as the Total Estimated Project Costs. Once the Shelter has been constructed and
financed, the County will prepare a final cost summary of the actual construction and financing
costs incurred by County in connection with the Shelter, excluding any costs that this Agreement
expressly provides shall be excluded from the calculation, to establish the total project costs and
annual repayment schedule based on the financing. Upon request, a City may review back up
material for the summary. After review and adjustment (if any) of the final cost summary by all
Parties, the approved final cost summary shail be known as the Total Project Costs. No City shall
unreasonably delay or disapprove the Total Project Costs.
6. Allocation of Total Project Costs.
(a) Allocation Based on Percentage of Shelter Use. Each Party shall pay its share of the Total Project
Costs, based on the annual repayment schedule associated with the financing. Each Party's share
shall be based upon that individual Party's percentage of shelter use. Shelter use is defined as the
number of shelter services (impounds, quarantines, animal surrenders, confiscations, euthanasia
requests, etc.) originating from, or requested by, an individual Party's jurisdiction and/or its
residents. Each Party's share shall be determined annually by the County as part of their normal
record keeping processes. The individual Party's shelter use percentage shall be calculated using
the total number of shelter services allocated to an individual Party over the preceding three full
fiscal year periods, divided by the total number of all shelter services provided to all ·Parties over
the same preceding three full fiscal year periods.
( Party#Shelter Services Yearl + Party #Shelter Servicesyear 2 + Party #Shelter Service Sy ear 3 )
%Shelter Use= (Total#Shelter Servicesyearl + Total #Shelter Servicesyear 2 + Total #Shelter Servicesyear3)
Exhibit C indicates the percentage of each Party's actual use of the existing Animal Services
shelter for the Fiscal Years 2013-14, 2014-15, and 2015-16. Adjustments to each Party's annual
allocation of Total Project Costs shall be adjusted annually based on the previous 3-year trailing
average of the percentages of shelter use.
b) Reallocation in the Event of Withdrawal or Termination. In the event that a Party withdraws or
terminates under Section 8 below, the allocation of each Party's share of Total Project Costs shall
be adjusted upward for the remaining parties for the subsequent calendar year. The annual
calculation and any associated adjustments shall be made by December 3.1 st of each year and
shall be due on July 1st of the next fiscal year.
Page 4 of 13
Item 9.b. - Page 12
;
7. Use of Shelter
a) The Shelter shall only be used as an Animal Services facility. No other County department or
agency or other person or entity shall use any portion of the Shelter without the prior written
consent of the Operations Committee (as defined in Section 9 (a) below). Such use shall be
accompanied by the payment of an appropriate rental charge.
8. Termination and Withdrawal
a) Withdrawal Prior to Authorization of Construction/Payment of Allocation of Soft Costs.
i) Any Party may withdraw from this Agreement prior to County's authorization of the
Construction to begin by giving a minimum of one ( 1) year's written notice to all Parties and
by payment of its share, based on the allocation set forth in Section 6,. above, of costs
incurred by County prior to date of receipt of notice of withdrawal. Notice shall be deemed
received on the date of personal delivery, or if mailed by U.S. mail, five (5) days after date of
mailing. Such costs shall be reasonably determined by County and a majority of the Parties
of the Executive Board, excluding any Party(ies) electing to withdraw. Any withdrawing
Party shall pay its share by the effective date of its withdrawal. A withdrawing Party who
withdraws prior to October 31, 2017 shall not be required to pay any portion of fmancing
costs, regardless of whether outside financing or in -house County financing is ultimately
provided. Any payment of soft or hard costs by a withdrawing Party shall be deleted from the
amount to be financed. The County will recalculate future payments of the remaining Parties
using revised percentages of shelter use with the methodology in Section 6(a).
b) Withdrawal After Construction Begins /Payment of Allocation.
i) Any Party may withdraw from this Agreement after the County's authorization of
construction begin, by providing a minimum of one (1) year's written notice to all of the
other Parties and prepaying its entire allocation of the Total Project Costs by the effective
date of its withdrawal. If a Party withdraws from this Agreement prior to October 31, 2017,
any estimated fmancing costs shall be deducted from the Total Project Costs before
calculating the withdrawing Party's Total Project Costs share. If County provides in-house
financing, any finance or interest charge accruing or payable after the withdrawal shall be
deducted :-from the Total Project Costs before calculating the withdrawing Party's share of the
Total Project Costs. Withdrawal from the Agreement shall be effective as of December 31 of
the year stated in the written notice. The County will recalculate future payments of the
remaining Parties using revised percentages of shelter use with the methodology in Section
6(a).
c) The County shall not terminate a City's access to or use of the Shelter if the City is not in default
of its payment obligations. For the purposes of this Agreement, a City shall be deemed to be in
default if said City is sixty ( 60) calendar days or more in arrears on any payment required under
this Agreement.
(i) Should the County desire to terminate a City's access or use of the Shelter for default of its
payment obligations, the County shall include any non-defaulted Cities, at the non-defaulted
Cities' sole discretion, in negotiations with the defaulted City, prior to their termination.
(ii) The County shall retain fmal decision authority to terminate any City's access to or use of the
Shelter for default of said City's payment obligations.
9. Termination for Government Non-appropriation
a) For each annual payment any City may owe related to repayment of the Total Project Costs
as defined herein, whether a proportionate annual payment or lump sum payment pursuant
to, but not limited to, provisions 4, 5, 6 and 8 of this Agreement, Cities represent and
Page 5 of 13
Item 9.b. - Page 13
warrant: that they have appropriated and budgeted the necessary funds to make all
necessary payments required pursuant to this Agreement for the remainder of the fiscal
year in which this Agreement conhnences, if any; and that it currently intends to make
further payments for the full term of this Agreement as scheduled in the above enumerated
provisions if funds are appropriated for such payments in each succeeding fiscal year by its
governing body. Without contractually committing itself to do so, Cities reasonably
believe that moneys in an amount sufficient to make all payments can and will lawfully be
appropriated therefor. Cities will direct the persons in charge of their budget requests to
include the subject payments required under this Agreement payable during each fiscal
year in the budget request presented to Cities' governing body for such fiscal year;
provided, that Cities' governing body retains authority within their sole discretion to
approve or reject any such budget reque~t. All payments shall be payable out of legally
available revenues of Cities appropriated therefore. County agrees that no payment or
obligation under this Agreement will be a general obligation of Cities and no payment
herein shall constitute a pledge of either the full faith and credit of Cities or the taxing
power of Cities. ·
b) If Cities' governing body fails to appropriate sufficient funds in any fiscal year for annual
payments under this Agreement, then a ''Non-Appropriation Event" shall be deemed to
have occurred. If a Non-Appropriation Event occurs, then the Non-Appropriating City
shall give County immediate notice of such Non-Appropriation Event and provide written
evidence of such failure by the City's Governing Body; and this Agreement shall terminate
as to the City giving notice of a Non-Appropriation Event without penalty or costs to that
City, provided that the City shall pay all payments and other amounts payable under this
Agreement for. which funds ~ave been appropriated by the City's governing body.
10. Animal Shelter Operations
a) An Operations Committee comprised of the County's Health Agency Director or his/her designee
and a subset of City Managers or their designees shall be formed. At their sole discretion, all
Parties may be represented on the Operations Committee.
b) An Executive Board compos_ed of the County Administrative Officer (CAO) and a subset of the
City Managers (2-3) for each of the Cities, or their designees, shall consider significant po'licy or
budget changes and make recommendations prior to policy implementation or budget adoption
for the Shelter.
c) The Executive Board meetings shall be held as needed and in conjunction with the existing
monthly City Manager/CAO meeting. At a minimum, "Animal Services" shall be a standing item
that is considered twice in a calendar year. While any Party may request that "Animal Services"
be added to the agenda of any City Manager/CAO monthly meeting, it will be the responsibility
of the chair of the meeting to ensure Animal Services is placed on the agenda and satisfies the
minimum number of meetings required by this Agreement.
d) If the City Managers' recommendation is different from that of the CAO on budget or policy
matters, the County shall include the City Managers' recommendation in any related staff report
to the Board of Supervisors and provide a summary of the nature of any disagreement.
e) Final policy and budgetary authority for Shelter operations reside with the County Board of
Supervisors.
f) Future Services Contracts shall be for 3-year terms.
g) If a City chooses to provide its own field services, it ~ust provide to all Par_ties, a one ( 1) year's
written notice of its intent to provide its own services and to terminate, or (if applicable) not to
Page 6 of 13
Item 9.b. - Page 14
..
renew, its Services Contract with the County, except as otherwise expressly provided in its
Services Contract with the County,
h) Service Contracts shall be separate from the Parties' obligations to finance and pay their
proportional and allocated shares of Total Project Costs for the Shelter.
i) The County's repayment obligation of its share of the Total Project Costs shall not be included in
the calculation of the Shelter's operating costs. The County shall charge no ren~ for the Shelter or
Shelter Property or otherwise attempt to obtain compensation from the Cities for those items
identified in Appendix D as "County Only Costs".
j) Any City shall have the ability to provide its own separate field services. The costs for accessing
the Shelter shall be reasonably determined by the County after consulting with the Executive
Board and shall only be for the fair share reasonable operating costs for Shelter operations.
k) Any City that elects to not participate in Shelter Total Project Costs shall immediately cease as a
Party to this Agreement and the County shall not be required to provide any animal services to
such City. Such City shall be required to provide its own animal services and shelter, in
accordance with al1 applicable laws and statues, effective on a date mutually agreed to by the City
and the County. If the City and the County are unable to mutually agree to a date, termination
will be effective upon the expiration of the City's existing Service Contract or the date a
Certificate of Occupancy is issued for the new Shelter, whichever occurs first.
11. Animal Shelter Planning
a) The Parties agree to form an ad-hoc value engineering team con~isting of up to three (3.) City
representatives and a minimum of two (2) County representatives.' City representatives shall fully
participate with the County to assist with investigating and identifying the most effective and efficient
methods to construct a Shelter that meets all Parties' existing and future animal service's needs. The
value engineering team shall meet as needed and provide input with architects, designers,
construction managers, and engineers during the development of plans and specifications for the
Shelter.
b) Prior to the authorization of the Construction Contract, the Executive Board shall be presented
project plans and estimated budgets, and provide a recommendation that will be included in the
CAO staff report to approve the contract by the Board of Supervisors.
12. Effective Date
a) Except as set forth above, this Agreement shall be effective for the period from January 5, 2017
until each Party has made the last payment required under Section 6 or, if applicable, Section 8,
of this Agreement ·
13. Entire Agreement .
a) This is the entire agreement among the Parties with respect to the Project and supersedes any
prior written or oral agreements with respect to the Project. In the event of a conflict between the
terms of this Agreement and the Services Contract, the terms of this Agreement shall prevail.
14. Assign.ability
a) Except as otherwise expressly provided for herein, no Party shall assign any of its obligations or
rights hereunder without the written consent of all Parties.
15. Notices
a) Any notices required to be given pursuant to this Agreement shall be given in writing and shall be
mailed to all Parties to the Agreement, directed to the County Administrative Officer and County
Counsel, and to the City Manager ·or City Administrative Officer and City Attorney of each City.
Page 7 of 13
Item 9.b. - Page 15
16. Audit
a) The Cities may inspect and/or audit all records and other written materials used by County in
preparing the Total Project Costs and annual invoices to each City.
17. Good Faith Efforts ,
a) The Parties shall each act in good faith in performing their respective obligations as set forth in
this Agreement and shall work diligently to maintain their longstanding cooperative relationships.
18. Amendment
a) This Agreement may only be amended in writing, signed by all Parties.
IN WITNESS WHEREOF, by their execution below, the Parties agree to be bound to the obligations
stated herein, and the Board of Supervisors of the COUNTY OF SAN LUIS OBISPO has authorized and
directed the Chairperson of the Board of Supervisors to execute this Agreement for and on behalf of the
County, and the Cities of ATASCADERO, ARROYO GRANDE, GROVER BEACH, MORRO BAY,
PASO ROBLES, PISMO BEACH, AND SAN LUIS OBISPO have caused this Agree:rp.ent to be
subscribed by each of their duly authorized officers and attested by their Clerks.
Dated: -------
Clerk of the Board
Dated: -------
City Clerk
Dated: ~-Z.8-17
~M_~ CityClerk
Dated: -------
City Clerk
Dated: -------
City Clerk
Dated: -------
COUNTY OF SAN LUIS OBISPO
CITY OF ATASCADERO
By:
CITY OF ARROYO GRANDE
;.;A~J1,r..Hiu...
# · tr}--~
CITY OF GROVER BEACH
By:
CITY OF MORRO BAY
By:
CITY OF PASO ROBLES
Page 8 of 13
• l
Item 9.b. - Page 16
16. Audit
a) The Cities may inspect and/or audit all records and other written materia1s used by County .in
preparing the Total Project Costs and BMual invoices to each City.
17, Good Faith Effons .
a) The Parties shaH each act in good faith in perfonning their respeetive obligations as set forth in
this Agreement and shall work diligently to maintain their longstanding cooperative relationships.
18. Amendment
a} Thfs Agreement may only be amended in writing, signed by all Parties.
IN WITNBSS WHEREOF, by their execution below, the Parties agree to be bound to the obligations
stated herein, and the Board of Supervisors of the COUNTY OF SAN LUIS OBISPO has authorized and
directed the Chairperson of the Board of Supervisors to execute this Agreement for and on behalf of the
County, and 1he Cities of ATASCADERO, ARROYO GRANDE, GROVER BBACH, MORRO BAY,
PASO ROBLES. PISMO BEACH. AND SAN LUIS OBISPO have caused this Agreement to be
subscribed by each of their duly authorized officers attested b . · lerks.
Dated: &ma(~?Ui
TOMMVGONG
Clerk of the Board .
ar,~rwn• .
DMllllY 011de
Dated: ____ _
City Clerk
Dated: ____ _
City Clerk
Dated: ____ _
City Clerk
Dated: ____ _
City Clerk
Dated: ____ _
~--
l~M:11~Dmtans;;;;a--2(;.11/11
By:
CJTY OF ARROYO GRANDE
By:
CITY OF GROVER BEACH
By:
ClTY OF MORRO BAY
By:
CITY OF PASO ROBLES
Page 8 of13
Item 9.b. - Page 17
City Clerk
Dated: ------
City Clerk
Dated: ------
City Cle:rk
By:
CITY OF PISMO BEACH
By:
CITY OF SAN LUIS OBISPO
By:
Page 9 of 13
Item 9.b. - Page 18
EXHIBIT A
Animal Services Facility
The quantities listed below were derived from a review of the existing Animal Services facility, the 2010
"Needs Assessment, Feasibility, and Building Program Study" by Shelter Planners of America, and
meetings with Animal Services Manager Eric Anderson.
Building Floor Area:
Outdoor Runs:
Incinerator, Cold Storage:
16,000 square feet
3,000
2,000
Sally Port, Truck Wash, Truck Parking (8 trucks): 4,200
Disaster Response Equipment:
Visitor Parking (15 spaces):
Staff Parking (20 spaces):
Large Animal Pens:
Subtotal:
Additional 20% for Circulation, Landscaping:
TOTAL:
1,200
5,300
7,000
27,000
65,700
13,140
78,840 square feet
Page 10 of 13
..
Item 9.b. - Page 19
}.
-..
LEGEND
a :11 • 11 '2 SITE BOLINDA..'<':'
EXHIBITB
~-
o·
OPEN
. Olx2Ul5
BORING J
0
.,.. "'·~·• .Ill! !l.~!!_i!f: "!!.I!!' .. W. !t. a -..~.:!I' ~L..11-~ • =~~
• ..
~ •
865 Oklahoma Ave
200'
. •
" ,. ,. ..
f
300'
SAN LUlS OBISPO COUNTY OPERATIONS CENTER
P'HASE 1 MASTER P'LAN
Page 11 of 13
Item 9.b. - Page 20
...
EXHIBITC
(Number of Shelter Service Provided)
Cities City Name 2013-14 2014-15 2015-16 Total Percent
Full Yr. Full Yr. Full Yr.
1 Arroyo Grande 286 7"A, 427 ll% 291 8% 1,004 8.39%
2 Atascadero 476 12% 600 15% 643 17"A> 1,719 14.37%
3 Grover Beach 167 4% 142 4% 135 4% 444 3.71%
4 Morro Bay 126 3% 143 4% 118 3% 387 3.23%
5 Paso Robles 724 18% 734 18% 792 21% 2,250 18.81%
6 Pismo Beach 57 1% 61 2% 54 1% 172 1.44%
San Luis
7 Obispo 482 12% 486 12% 479 12% 1,447 12.09%
99 Unincorporated 1,745 43% 1,464 36% 1,332 35% 4,541 37.96%
4,063 4,057 3,844 11,964 100.00%
Page 12 of 13
Item 9.b. - Page 21
EXHIBITD
=7·";·~:=:y:•~~ ;er-,,,-•, . ··;·:
. .
.
-. ·•·.: --
Construction (B u ilding & Si te Improvements ) s 7 ,840.000 s 7 ,840,000 s 7,840,000
Construction Contingency 836,500 836,500 836,500
Oklahoma Ave ./ Uti lity Extension 525,000 348,967 176,033 176,033
BLDG & SITE HARD COSIS SUBTOTAL: 9,201,500 348,967 8,85.2,533 176,033 8,676,500
INTERIOR HARD COSTS '"''il)l':ti, .·
Fi xtures. Furni ture & Equ i pment 400,000 400,000 400,000
Te l ephone/Data/Securi ty 160,000 160,000 160,000
INTERIOR HARD COSTS SUBTOTAL: 560,000 560,000 560,000
HARD COSTS SUBTOTAL: 9,761,500 348,967 9,412,533 176,033 9,236,500
SciFTSCOSTS'. ' •. :;.,,c'"' . . }\ .. 1''':E' ,,,. .. ,, ;,
!,·,"". .. ,,,. ..
ADMINISTRATION
County Admi n i strati on & Proj ect Management 500,000 500,000 500,000
PROFESSIONAL SERVICES
Arch itectural/Engineer i ng Des i gn Consu l tants 920,000 920,000 920,C-OO
Co nstruction Management 450,000 4 50,000 450,000
Testing & Inspecti on 310,000 31 0 ,000 310,000
Surveys,. Geotec h .• Env. M i tigati on 250,000 250,000 250,0GO
Permits & Fees 105.000 105,000 105,000
Storm Water Polluti on Prevention Pl an 170,000 170,000 170,000
MISCEUANEOUS
Proj ect Development Contingency 650,000 650,000 650,000
Esca lati on 585,000 585 ,000 585,000
SOFT COSTS SUBTOTAL: 3,940,000 3,940,000 3,940,000
. +:.. .... :., OTHER tosrs ,, . .
Rema i ning deprec i at i on value o f existing fac ility 168,800 1Ga,.soo
Demolition of exi sti ng facility 200,000 200,000
Land Cost (2 acres) 737,500 737,500
OTHER COSTS SUBTOTAL : 1,106,300 1,106,300
17s;aifa ; s>. 1s,176,soo
Financing Costs-Low end estimate
Est1 matei:I' Pro ject eoristructi on eosts
Estiinate.d Profert Financing COsts'@3..5%
Annual OeBt:Servfce 829,31&
Page 13 of 13
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Item 9.b. - Page 22