CC 2017-02-14_09e MOA for Animal Services ShelterMEMORANDUM
TO: CITY COUNCIL
FROM: BEAU PRYOR, ACTING CHIEF OF POLICE
DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: CONSIDERATION OF MEMORANDUM OF AGREEMENT WITH THE
COUNTY OF SAN LUIS OBISPO TO JOINTLY FINANCE AND
CONSTRUCT A REPLACEMENT ANIMAL SERVICES SHELTER
DATE: FEBRUARY 14, 2017
RECOMMENDATION:
It is recommended the City Council approve and authorize the Mayor to execute a
Memorandum of Agreement (“MOA”) in substantial conformance as shown in
Attachment 1 with the County of San Luis Obispo, and the Cities of Atascadero, Grover
Beach, Morro Bay, Pismo Beach, Paso Robles and San Luis Obispo to jointly finance
and construct the replacement of an animal services shelter.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The proposed Memorandum of Agreement would apportion 8.4% of the estimated costs
of $13.3 million to the City of Arroyo Grande based on the average use of the shelter
from 2012-2015. This amounts to an estimated payment of approximately $70,000 to
$87,000 per year over the next 30 years. Per the proposed MOA, this amount could
adjust upward or downward based on a three year look back of actual shelter usage.
Staff’s assessment is that shelter usage has been fairly consistent and that actual future
payments will be near the amount established for the first three years.
Additionally, the Memorandum of Agreement contains cost containment provisions with
respect to actual costs and provides a mechanism to reduce costs or allow a
participating City to terminate the agreement if costs exceed the estimated capital
budget of $13.3 million by 10% or more.
BACKGROUND:
Under state law, each incorporated City has the option of providing their own animal
services or contracting with the County to provide animal services consistent with the
standards outlined under state law. All seven cities in the County have currently
contracted with the County for those services. Under this service contract, all seven
cities and the County share the cost of animal services based on a formula that factors
the agencies' proportionate use of field services and shelter services.
Item 9.e. - Page 1
CITY COUNCIL
CONSIDERATION OF MEMORANDUM OF AGREEMENT WITH THE COUNTY OF
SAN LUIS OBISPO TO JOINTLY FINANCE AND CONSTRUCT A REPLACEMENT
ANIMAL SERVICES SHELTER
FEBRUARY 14, 2017
PAGE 2
The contract provides for the provision of animal care and control services that include,
but are not limited to:
Sheltering and medical care of stray, owner surrendered, confiscated, and
quarantined household animals.
Reunification of sheltered animals with owners or adopted into new homes.
Receipt and publication of lost and found animal reports.
Response to calls for service from the Police Department or residents for stray or
loose animals, dangerous or vicious animals, bite and neglect/abuse
investigations, potential rabies exposure investigations and quarantines, pickup
of deceased animals.
Regulation of breeders and sales of domestic animals.
Animal-related nuisance investigation.
Enforcement of State and local animal-related laws.
Capital costs for the replacement of the shelter are not included in the costs charged to
cities for field services or shelter services.
ANALYSIS OF ISSUES:
The County Animal Services Division (“Division”) provides animal field services/care
and shelter services throughout the unincorporated regions of the county, as well as
within each of the seven incorporated communities. Each city contracting with the
Division is assessed an annual service fee based upon their proportionate use of both
field services and animal sheltering together with the operational costs associated with
each of these functions. The City’s current contract for these services expires June 30,
2019. Costs charged to the city are approximately $80,000 annually and are included in
the Police Department’s budget.
The Division operates a single animal shelter to house and care for stray and owner
relinquished animals. This shelter, located at 885 Oklahoma Avenue in San Luis
Obispo, is the County's only open intake animal shelter and receives approximately
4,500 animals annually. Dogs and cats account for roughly 92% of the animals handled
at the shelter with the remainder comprised of a wide variety of animals ranging from
rabbits, alligators, and emus to guinea pigs, monkeys, and snakes.
Existing Shelter
The Animal Services shelter was constructed in approximately 1975 on a site which had
formerly been a landfill utilized in the 1940's by the US Army and Camp San Luis
Obispo. As initially designed, the structure totaled 6,600 square feet and was intended
primarily for the kenneling of dogs, with less than 38 square feet dedicated to the care
and housing of cats; no accommodations were made for other types of animals. Since
then, additional building modifications were constructed to accommodate dog runs
Item 9.e. - Page 2
CITY COUNCIL
CONSIDERATION OF MEMORANDUM OF AGREEMENT WITH THE COUNTY OF
SAN LUIS OBISPO TO JOINTLY FINANCE AND CONSTRUCT A REPLACEMENT
ANIMAL SERVICES SHELTER
FEBRUARY 14, 2017
PAGE 3
adjacent to the kennels, corrals for ranch animals, a small structure for cats, night drop-
off kennels, an expansion for staff administration, and renovation for the public lobby.
Industry standards and public expectations of animal shelters have shifted substantially
and many of the shelter's original design features and characteristics are now outdated
or inconsistent with the current understanding of humane animal sheltering. The
consequences of these design issues relative to their impact on humane animal care
are further compounded by the effects of deferred maintenance, robust utilization, and
harsh environmental conditions. Over time, roofing leaks have developed, walls and
door frames have begun to deteriorate, and the capacity of electrical and drainage
systems have been overloaded. The lack of heating, poor ventilation, and general
facility layout promotes stress, illness, and behavioral problems in sheltered animals.
The austere and unwelcoming environment often discourages the general public from
visiting and is believed to have an adverse impact on adoption and stray reclaim rates.
In 2010, the County contracted with Ravatt Albrecht & Associates to develop design
plans for Phase I of a project to remodel the facility. It quickly became apparent that the
scope of the project exceeded the available funding and the dog kennel remodel
component of the project was dropped. The ability to design a remodel which could be
constructed within budget was further complicated by soil stability and potential
methane off-gassing issues resulting from the shelter's location on an abandoned
landfill. During the environmental permitting process, it was determined that a permit
was required through CalRecycle1, adding time and cost to the development process.
Since then, the project has received a post landfill closure permit through CalRecycle,
and permits from the Air and Water Quality Control Boards.
In November 2013, the County received five construction bids from contractors· for the
Animal Services Cattery and Lobby Expansion project. Bids ranged between
$1,245,200 and $1,382,000. The lowest bid received exceeded the estimated
construction cost or budget by $350,250, which was 39% above the engineer’s
estimated construction cost. In January 2014, staff recommended and the Board of
Supervisors rejected all bids for the Animal Services Cattery and Lobby Expansion
project. In light of the significant disparities between the project budget, operational
needs, and projected construction costs, the project was reassessed and an effort was
made to identify design modifications and alternative operational measures which might
bring construction costs within budget. During this reassessment, the identification of
additional structural problems, including the development of a large sinkhole directly
adjacent to the building, caused concern that further investment and attempts to
rehabilitate the facility would be fiscally irresponsible.
1 CalRecycle oversees the permitting of land use or other activities on active or abandoned land fill sites.
Item 9.e. - Page 3
CITY COUNCIL
CONSIDERATION OF MEMORANDUM OF AGREEMENT WITH THE COUNTY OF
SAN LUIS OBISPO TO JOINTLY FINANCE AND CONSTRUCT A REPLACEMENT
ANIMAL SERVICES SHELTER
FEBRUARY 14, 2017
PAGE 4
The County explored a potential partnership with Woods Humane Society to build and
operate a replacement facility. The County concluded it was infeasible due to a number
of factors, with the primary one being that that Woods was not amenable to managing
an expansion of services that they provide. In April 2015, the County Board of
Supervisors concluded that based on the totality of factors, remodeling the existing
facility would be imprudent, partnerships unlikely and therefore directed staff to pursue
the development of a replacement facility.
Proposed Shelter and MOA
The Board of Supervisors directed staff to pursue the construction of a new 15,000
square foot facility (approximate) to be located next door to the existing facility to fully
address the facility needs and implement many of the recommendations contained in
the Humane Society of the United States and (HSUS) and SPA report (Attachment 2).
The new facility would be located next door to the existing facility. Further programming
was required to define the proper size for the facility and ultimately landed on the
program description that is generally outlined in Exhibit A to the proposed Memorandum
of Agreement.
Staff is recommending the approval of the Memorandum of Agreement as it provides a
mechanism to: 1) share costs based on proportionate use 2) clarify service and shelter
governance, and 3) control construction costs. It is an efficient way to construct a
shelter consistent with state law and local service preferences and standards.
Given the significant investment that each City is making, the issue of governance and
the role that Cities have in terms of containing costs is important. Moreover, the timing
of the completion of the facility will impact future budgets.
An important issue is one of how to best apportion capital costs associated with the
replacement facility and ensuring that the type of construction selected is the most
economical and efficient one to meet existing and future needs of the region.
Ultimately, through extensive discussions with the County and Cities, the
recommendation was made to distribute all costs for the proposed shelter based on the
proportional use of shelter services, as set forth in Exhibit C of the Memorandum of
Agreement.
ALTERNATIVES:
The following alternatives are presented for the City Council’s consideration:
1. Approve staff recommendations;
2. Do not approve staff recommendations;
3. Provide direction to staff.
Item 9.e. - Page 4
CITY COUNCIL
CONSIDERATION OF MEMORANDUM OF AGREEMENT WITH THE COUNTY OF
SAN LUIS OBISPO TO JOINTLY FINANCE AND CONSTRUCT A REPLACEMENT
ANIMAL SERVICES SHELTER
FEBRUARY 14, 2017
PAGE 5
ADVANTAGES:
Animal care and control services will be provided to City residents in a facility that is
consistent with current humane standards and public expectations. Additional
governance over costs associated with animal care and control services will be
available to the City. In addition, the City will be able to benefit from the economies of
scale of sharing both capital and service costs with the County and six cities in San Luis
Obispo County. Staff has determined that the City cannot provide its own animal field
services or shelter services and build its own facility for less than approximately
$225,000 per year.
DISADVANTAGES:
Additional costs will be incurred for many years into the future.
ENVIRONMENTAL REVIEW:
The County of San Luis Obispo is the lead agency under the California Environmental
Quality Act (CEQA). This means that they completed all environmental review for the
project and the City, as a responsible agency, relies on the County’s environmental
determination to meet the City’s statutorily required CEQA mandates.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1. MOA
2. Humane Society of the United States and (HSUS) and SPA report
Item 9.e. - Page 5
Page 1 of 12
AGREEMENT FOR ALLOCATION OF CONSTRUCTION AND FINANCING COSTS FOR AN
ANIMAL SERVICES SHELTER AT 865 OKLAHOMA AVENUE 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 Avenue 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
described 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
($14,500,000) without a written amendment to this agreement signed by all Parties.
ATTACHMENT 1
Item 9.e. - Page 6
Page 2 of 12
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 within 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 costs 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 within 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 amendment 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
Item 9.e. - Page 7
Page 3 of 12
$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 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).
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 reasonable 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 agreement, 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 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).
4. Financing
a) County Advance of Funds. The County shall advance funds required to pay for the costs of
construction of the Shelter. The County intends to finance 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 financing terms based on market rates and terms available at the time of financing.
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
financing, 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
Item 9.e. - Page 8
Page 4 of 12
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
payment 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/Total 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 shall 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. %𝑆𝑆ℎ𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝑈𝑈𝑈𝑈𝑒𝑒=( 𝑃𝑃𝑃𝑃𝑒𝑒𝑒𝑒𝑃𝑃#𝑆𝑆ℎ𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝑆𝑆𝑒𝑒𝑒𝑒𝑆𝑆𝑆𝑆𝑆𝑆𝑒𝑒𝑈𝑈 𝑌𝑌𝑌𝑌𝑌𝑌𝑌𝑌1 +𝑃𝑃𝑃𝑃𝑒𝑒𝑒𝑒𝑃𝑃 #𝑆𝑆ℎ𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝑆𝑆𝑒𝑒𝑒𝑒𝑆𝑆𝑆𝑆𝑆𝑆𝑒𝑒𝑈𝑈𝑌𝑌𝑌𝑌𝑌𝑌𝑌𝑌 2 +𝑃𝑃𝑃𝑃𝑒𝑒𝑒𝑒𝑃𝑃 #𝑆𝑆ℎ𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝑆𝑆𝑒𝑒𝑒𝑒𝑆𝑆𝑆𝑆𝑆𝑆𝑒𝑒𝑈𝑈𝑌𝑌𝑌𝑌𝑌𝑌𝑌𝑌 3)(𝑇𝑇𝑇𝑇𝑒𝑒𝑃𝑃𝑒𝑒#𝑆𝑆ℎ𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝑆𝑆𝑒𝑒𝑒𝑒𝑆𝑆𝑆𝑆𝑆𝑆𝑒𝑒𝑈𝑈𝑌𝑌𝑌𝑌𝑌𝑌𝑌𝑌 1 +𝑇𝑇𝑇𝑇𝑒𝑒𝑃𝑃𝑒𝑒 #𝑆𝑆ℎ𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝑆𝑆𝑒𝑒𝑒𝑒𝑆𝑆𝑆𝑆𝑆𝑆𝑒𝑒𝑈𝑈𝑌𝑌𝑌𝑌𝑌𝑌𝑌𝑌 2 +𝑇𝑇𝑇𝑇𝑒𝑒𝑃𝑃𝑒𝑒 #𝑆𝑆ℎ𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝑆𝑆𝑒𝑒𝑒𝑒𝑆𝑆𝑆𝑆𝑆𝑆𝑒𝑒𝑈𝑈𝑌𝑌𝑌𝑌𝑌𝑌𝑌𝑌 3)
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 31st of each year and
shall be due on July 1st of the next fiscal year.
Item 9.e. - Page 9
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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 financing
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 financing 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 final decision authority to terminate any City’s access to or use of the
Shelter for default of said City’s payment obligations.
9. 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.
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b) An Executive Board composed 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 policy 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 must provide to all Parties, a one (1) year’s
written notice of its intent to provide its own services and to terminate, or (if applicable) not to
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 rent 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 all 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.
10. Animal Shelter Planning
a) The Parties agree to form an ad-hoc value engineering team consisting 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.
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11. 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
12. 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.
13. Assignability
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.
14. 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.
15. 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.
16. 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.
17. 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 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:
Item 9.e. - Page 12
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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:
Dated: _______________ CITY OF SAN LUIS OBISPO
_____________________ ____________________________
City Clerk By:
Item 9.e. - Page 13
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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: 16,000 square feet
Outdoor Runs: 3,000
Incinerator, Cold Storage: 2,000
Sally Port, Truck Wash, Truck Parking (8 trucks): 4,200
Disaster Response Equipment: 1,200
Visitor Parking (15 spaces): 5,300
Staff Parking (20 spaces): 7,000
Large Animal Pens: 27,000
Subtotal: 65,700
Additional 20% for Circulation, Landscaping: 13,140
TOTAL: 78,840 square feet
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EXHIBIT B
865 Oklahoma Ave
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EXHIBIT C
(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% 427 11% 291 8% 1,004 8.39%
2 Atascadero 476 12% 600 15% 643 17% 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%
7
San Luis
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%
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EXHIBIT D
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$77$&+0(17
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