HomeMy WebLinkAboutCC_2018_07_10_AgendaPacket
CITY OF ATASCADERO
CITY COUNCIL
AGENDA
Tuesday, July 10, 2018
City Hall Council Chambers, 4th floor
6500 Palma Avenue, Atascadero, California
(Entrance on Lewis Ave.)
CITY COUNCIL CLOSED SESSION:
1. CLOSED SESSION -- PUBLIC COMMENT
2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION
3. CLOSED SESSION -- CALL TO ORDER
a. Conference with Real Property Negotiators (Govt. Code 54956.8)
Real Property: 6009 Del Rio Road, Atascadero, California, 93422
(APN 049141038)
Agency Negotiator: Rachelle Rickard, City Manager
Negotiating Parties: Robert and Richard Arnold
Subject of Negotiations: Purchase price and/or terms of payment.
b. Conference with Labor Negotiators (Govt. Code Sec. 54957.6)
Agency designated representatives: Rachelle Rickard, City Manager
Employee Organizations: Atascadero Professional Firefighters, Local
3600; Atascadero Police Association; Service Employees International
Union, Local 620; Mid-Management/Professional Employees; Non-
Represented Professional and Management Workers and Confidential
Employees
4. CLOSED SESSION -- ADJOURNMENT
5. COUNCIL RETURNS TO CHAMBERS
City Council Closed Session: 5:00 P.M.
City Council Regular Session: 6:00 P.M.
Page 1 of 44
6. CLOSED SESSION -- REPORT
ADJOURNMENT
REGULAR SESSION – CALL TO ORDER: 6:00 P.M.
PLEDGE OF ALLEGIANCE: Mayor Pro Tem Fonzi
ROLL CALL: Mayor O’Malley
Mayor Pro Tem Fonzi
Council Member Bourbeau
Council Member Moreno
Council Member Sturtevant
APPROVAL OF AGENDA: Roll Call
Recommendation: Council:
1. Approve this agenda; and
2. Waive the reading in full of all ordinances appearing on this agenda, and the titles
of the ordinances will be read aloud by the City Clerk at the first reading, after
the motion and before the City Council votes.
PRESENTATIONS: None.
B. CONSENT CALENDAR: (All items on the consent calendar are considered to be
routine and non-controversial by City staff and will be approved by one motion if no
member of the Council or public wishes to comment or ask questions. If comment or
discussion is desired by anyone, the item will be removed from the consent calendar
and will be considered in the listed sequence with an opportunity for any member of
the public to address the Council concerning the item before action is taken.)
1. City Council Draft Action Minutes – June 26, 2018
Recommendation: Council approve the City Council Draft Action Minutes of
the June 26, 2018, City Council meeting. [City Clerk]
UPDATES FROM THE CITY MANAGER: (The City Manager will give an oral report on
any current issues of concern to the City Council.)
COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanting to
address the Council on any matter not on this agenda and over which the Council has
jurisdiction. Speakers are limited to three minutes. Please state your name for the record
before making your presentation. Comments made during Community Forum will not be a
subject of discussion. A maximum of 30 minutes will be allowed for Community Forum,
unless changed by the Council. Any members of the public who have questions or need
information may contact the City Clerk’s Office, between the hours of 8:30 a.m. and 5:00 p.m.
at 470-3400, or cityclerk@atascadero.org.)
Page 2 of 44
B. PUBLIC HEARINGS: None.
C. MANAGEMENT REPORTS:
1. Animal Shelter Services Agreement – Amendment to the Current Animal
Services Memorandum of Agreement
Fiscal Impact: Amendment savings to the City of Atascadero are estimated
to be between $6,000 - $70,000 annually.
Recommendations: Council:
1. Authorize the City Manager to send a letter to each of the signatories of
the Agreement for Allocation of Construction and Financin g Costs for an
Animal Services Shelter rescinding the City’s letter dated October 30,
2017 regarding the Countywide Animal Shelter - Notice of Conditional
Withdrawal from the Agreement.
2. Authorize the City Manager to execute Amendment #1 to the Agreement
for Allocation of Construction and Financing Costs for an Animal
Services Shelter in substantial conformance with the attached
version.[City Manager]
COUNCIL ANNOUNCEMENTS AND REPORTS: (On their own initiative, Council
Members may make a brief announcement or a brief report on their own activities.
Council Members may ask a question for clarification, make a referral to staff or take
action to have staff place a matter of business on a future agenda. The Council may take
action on items listed on the Agenda.)
D. COMMITTEE REPORTS: (The following represent standing committees.
Informative status reports will be given, as felt necessary):
Mayor O’Malley
1. City / Schools Committee
2. County Mayors Round Table
3. SLO Council of Governments (SLOCOG)
4. SLO Regional Transit Authority (RTA)
5. Integrated Waste Management Authority (IWMA)
Mayor Pro Tem Fonzi
1. Air Pollution Control District
2. Oversight Board for Successor Agency to the Community Redevelopment
Agency of Atascadero
3. SLO Local Agency Formation Commission (LAFCo)
4. City of Atascadero Design Review Committee
5. Atascadero Basin Ground Water Sustainability Agency (GSA )
Council Member Bourbeau
1. City of Atascadero Design Review Committee
2. Homeless Services Oversight Council
3. City of Atascadero Finance Committee
4. SLO County Water Resources Advisory Committee (WRAC)
Page 3 of 44
Council Member Moreno
1. California Joint Powers Insurance Authority (CJPIA) Board
2. City of Atascadero Finance Committee (Chair)
3. Economic Vitality Corporation, Board of Directors (EVC)
Council Member Sturtevant
1. City / Schools Committee
2. League of California Cities – Council Liaison
E. INDIVIDUAL DETERMINATION AND / OR ACTION:
1. City Council
2. City Clerk
3. City Treasurer
4. City Attorney
5. City Manager
F. ADJOURN
Please note: Should anyone challenge any proposed development entitlement listed on this Agenda in court, that
person may be limited to raising those issues addressed at the public hearing described in this notice, or in written
correspondence delivered to the City Council at or prior to this public hearing. Correspondence submitted at this public
hearing will be distributed to the Council and available for review in the City Clerk's office.
I, Amanda Muther, Deputy City Clerk of the City of Atascadero, declare under penalty of perjury that the foregoing agenda for the
July 10, 2018 Regular Session of the Atascadero City Council was posted on July 3, 2018, at the Atascadero City Hall, 6500 Palma Avenue, Atascadero,
CA 93422 and was available for public review at that location.
Signed this 3rd day of July 2018, at Atascadero, California.
Amanda Muther, Deputy City Clerk
City of Atascadero
Page 4 of 44
City of Atascadero
WELCOME TO THE ATASCADERO CITY COUNCIL MEETING
The City Council meets in regular session on the second and fourth Tuesday of each month at 6:00 p.m.
Council meetings will be held at the City Hall Council Chambers, 6500 Palma Avenue, Atascadero. Matters
are considered by the Council in the order of the printed Agenda. Regular Council meetings are televised
live, audio recorded and videotaped for future playback. Charter Communication customers may view the
meetings on Charter Cable Channel 20 or via the City’s website at www.atascadero.org. Meetings are also
broadcast on radio station KPRL AM 1230. Contact the City Clerk for more information (470-3400).
Copies of the staff reports or other documentation relating to each item of business referred to on the
Agenda are on file in the office of the City Clerk and are available for public inspection during City Hall
business hours at the Front Counter of City Hall, 6500 Palma Avenue, Atascadero, and on our website,
www.atascadero.org. Contracts, Resolutions and Ordinances will be allocated a number once they are
approved by the City Council. The minutes of this meeting will reflect these numbers. All documents
submitted by the public during Council meetings that are either read into the record or refe rred to in their
statement will be noted in the minutes and available for review in the City Clerk's office .
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in
a City meeting or other services offered by this City, please contact the City Manager’s Office or the
City Clerk’s Office, both at (805) 470-3400. Notification at least 48 hours prior to the meeting or time when
services are needed will assist the City staff in assuring that reasonable arrangements can be made to
provide accessibility to the meeting or service.
TO SPEAK ON SUBJECTS NOT LISTED ON THE AGENDA
Under Agenda item, “COMMUNITY FORUM”, the Mayor will call for anyone from the audience having
business with the Council to approach the lectern and be recognized.
1. Give your name for the record (not required)
2. State the nature of your business.
3. All comments are limited to 3 minutes.
4. All comments should be made to the Mayor and Council.
5. No person shall be permitted to make slanderous, profane or negative personal remarks
concerning any other individual, absent or present
This is the time items not on the Agenda may be brought to the Council’s attention. A maximum of 30
minutes will be allowed for Community Forum (unless changed b y the Council). If you wish to use a
computer presentation to support your comments, you must notify the City Clerk's office at least 24 hours
prior to the meeting. Digital presentations must be brought to the meeting on a USB drive or CD. You are
required to submit to the City Clerk a printed copy of your presentation for the record. Please check in with
the City Clerk before the meeting begins to announce your presence and turn in the printed copy.
TO SPEAK ON AGENDA ITEMS (from Title 2, Chapter 1 of the Atascadero Municipal Code)
Members of the audience may speak on any item on the agenda. The Mayor will identify the subject, staff
will give their report, and the Council will ask questions of staff. The Mayor will announce when the public
comment period is open and will request anyone interested to address the Council regarding the matter
being considered to step up to the lectern. If you wish to speak for, against or comment in any way:
1. You must approach the lectern and be recognized by the Mayor
2. Give your name (not required)
3. Make your statement
4. All comments should be made to the Mayor and Council
5. No person shall be permitted to make slanderous, profane or negative personal remarks
concerning any other individual, absent or present
6. All comments limited to 3 minutes
The Mayor will announce when the public comment period is closed, and thereafter, no further public
comments will be heard by the Council.
Page 5 of 44
ITEM NUMBER: A-1
DATE: 07/10/18
CITY OF ATASCADERO
CITY COUNCIL
DRAFT MINUTES
Tuesday, June 26, 2018
City Hall Council Chambers, 4th floor
6500 Palma Avenue, Atascadero, California
(Entrance on Lewis Ave.)
CITY COUNCIL CLOSED SESSION:
Mayor O’Malley called Closed Session to order at 4:59 p.m.
1. CLOSED SESSION -- PUBLIC COMMENT
2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION
3. CLOSED SESSION -- CALL TO ORDER
a. Conference with Labor Negotiators (Govt. Code Sec. 54957.6)
Agency designated representatives: Rachelle Rickard, City Manager
Employee Organizations: Atascadero Professional Firefighters, Local
3600; Atascadero Police Association; Service Employees International
Union, Local 620; Mid-Management/Professional Employees; Non-
Represented Professional and Management Workers and Confidential
Employees
4. CLOSED SESSION -- ADJOURNMENT
5. COUNCIL RETURNS TO CHAMBERS
6. CLOSED SESSION -- REPORT
ADJOURNMENT
The City Attorney reported that there was no reportable action.
City Council Closed Session: 5:00 P.M.
City Council Regular Session: 6:00 P.M.
Page 6 of 44
ITEM NUMBER: A-1
DATE: 07/10/18
REGULAR SESSION – CALL TO ORDER: 6:00 P.M.
Mayor O’Malley called the meeting to order at 6:00 p.m. and Council Member Sturtevant
led the Pledge of Allegiance.
ROLL CALL:
Present: Council Members Moreno, Sturtevant, Mayor Pro Tem Fonzi and
Mayor O’Malley
Absent: Council Member Bourbeau
Staff Present: City Manager Rachelle Rickard, Public Works Director Nick DeBar,
Police Chief Jerel Haley, Deputy Administrative Services Director
Cindy Chaves, Community Development Director Phil Dunsmore,
Fire Chief Casey Bryson, City Attorney Brian Pierik, Deputy City
Manager/City Clerk Lara Christensen, Deputy City Manager Terrie
Banish, Deputy City Clerk Amanda Muther
APPROVAL OF AGENDA:
MOTION: By Council Member Sturtevant and seconded by Mayor Pro
Tem Fonzi to:
1. Approve this agenda; and
2. Waive the reading in full of all ordinances appearing on this
agenda, and the titles of the ordinances will be read aloud
by the City Clerk at the first reading, after the motion and
before the City Council votes.
Motion passed 4:0 by a roll-call vote. Bourbeau absent.
PRESENTATIONS: None.
A. CONSENT CALENDAR: (All items on the consent calendar are considered to be
routine and non-controversial by City staff and will be approved by one motion if no
member of the Council or public wishes to comment or ask questions. If comment
or discussion is desired by anyone, the item will be removed from the consent
calendar and will be considered in the listed sequence with an opportunity for any
member of the public to address the Council concerning the item before action is
taken.)
1. City Council Draft Action Minutes – June 12, 2018
Recommendation: Council approve the City Council Draft Action Minutes
of the June 12, 2018, City Council meeting. [City Clerk]
Page 7 of 44
ITEM NUMBER: A-1
DATE: 07/10/18
2. May 2018 Accounts Payable and Payroll
Fiscal Impact: $4,443,408.17
Recommendation: Council approve certified City accounts payable, payroll
and payroll vendor checks for May 2018. [Administrative Services]
3. Appointment of Atascadero Tourism Business Improvement District
(ATBID) Board Members
Fiscal Impact: None.
Recommendation: Council appoint Deana Alexander, Daniel Brewer and
Amar Sohi to the ATBID Advisory Board, for a term expiring June 30, 2020.
[City Manager]
MOTION: By Mayor Pro Tem Fonzi and seconded by Council Member
Moreno to approve the Consent Calendar.
Motion passed 4:0 by a roll-call vote. Bourbeau Absent.
UPDATES FROM THE CITY MANAGER:
City Manager Rachelle Rickard gave an update on projects and issues within the City.
COMMUNITY FORUM:
The following citizens spoke during Community Forum: David Nickels, Paul Murphy,
Nancy Hair, Michelle Harms, Jim Wilkins, and Barbara Combs.
B. PUBLIC HEARINGS:
1. Placement of Sewer Service Charges on the 2018-2019 Property Tax
Rolls
Ex-Parte Communications:
Fiscal Impact: The City will bill $1,939,105.15 in sewer service charges for
Fiscal Year 2018-2019.
Recommendation: Council adopt Draft Resolution placing sewer service
charges on the 2018-2019 property tax rolls. [Public Works]
Ex Parte Communications
None were disclosed.
Public Works Director Nick DeBar gave the staff report and answered questions from
the Council. City Manager Rickard also answered questions from the Council.
PUBLIC COMMENT:
The following citizens spoke on this item: Susan Funk.
Mayor O’Malley closed the Public Comment period.
Page 8 of 44
ITEM NUMBER: A-1
DATE: 07/10/18
MOTION: By Council Member Sturtevant and seconded by Mayor Pro Tem
Fonzi to adopt Draft Resolution placing sewer service charges on
the 2018-2019 property tax rolls. (Resolution No. 2018-057)
Motion passed 4:0 by a roll-call vote. Bourbeau Absent.
2. Summary Vacation for Portions of Mercedes Avenue & Del Rio Avenue
Right-of-Way
Ex-Parte Communications:
Fiscal Impact: None.
Recommendation: Council adopt Draft Resolution finding and determining
that portions of Mercedes Avenue and Del Rio Avenue rights -of-way,
adjacent to 5147 Traffic Way, 5205 Traffic Way, and 6155 Via Avenue, are
unnecessary for present or prospective public street purposes and
ordering their summary vacation. [Public Works]
Mayor Pro Tem Fonzi noted that her place of employment is representing a property in
escrow near the proposed vacations, which creates a potential conflict of interest for
her. She stepped down from the dais, recusing herself from the discussion and vote fo r
this item.
Ex Parte Communications
None were disclosed.
Public Works Director Nick DeBar gave the staff report and answered questions from
the Council.
PUBLIC COMMENT:
The following citizens spoke on this item: Skip Touchon.
Mayor O’Malley closed the Public Comment period.
MOTION: By Mayor O’Malley and seconded by Council Member Moreno to
adopt Draft Resolution finding and determining that portions of
Mercedes Avenue and Del Rio Avenue rights-of-way, adjacent to
5147 Traffic Way, 5205 Traffic Way, and 6155 Via Avenue, are
unnecessary for present or prospective public street purposes
and ordering their summary vacation. (Resolution No. 2018-058)
Motion passed 3:0 by a roll-call vote. Bourbeau Absent, Fonzi abstained.
Mayor Pro Tem Fonzi returned to the dias.
C. MANAGEMENT REPORTS:
1. Elected Mayor Term Ballot Measure
Fiscal Impact: The City Clerk’s estimate for the addition of this ballot
measure is approximately $2,500.
Page 9 of 44
ITEM NUMBER: A-1
DATE: 07/10/18
Recommendations: Council adopt the following Resolutions to submit to
the voters a question relating to the term of the elected mayor:
1. Draft Resolution A, approving ballot measure text relating to the term
of office for Mayor to be submitted to the qualified electors of the City
at the General Municipal Election to be held on November 6, 2018, as
called by Resolution No. 2018-051.
2. Draft Resolution B, setting priorities for filing written arguments
regarding the City measure and directing the City Attorney to prepare
an impartial analysis.
3. Authorize the Director of Administrative Services to appropriate $2,500
of General Fund Reserve monies to the City Clerk budget. [City Clerk]
Deputy City Manager/City Clerk Christensen gave the staff report and answered
questions from the Council.
PUBLIC COMMENT:
The following citizens spoke on this item: Susan Funk.
Mayor O’Malley closed the Public Comment period.
MOTION: By Council Member Sturtevant and seconded by Mayor Pro Tem
Fonzi to adopt the following Resolutions to submit to the voters a
question relating to the term of the elected mayor:
1. Draft Resolution A, approving ballot measure text relating to
the term of office for Mayor to be submitted to the qualified
electors of the City at the General Municipal Election to be
held on November 6, 2018, as called by Resolution No. 2018 -
051.
2. Draft Resolution B, setting priorities for filing written
arguments regarding the City measure and directing the City
Attorney to prepare an impartial analysis to include of all City
Council Members names listed under authorization.
3. Authorize the Director of Administrative Services to
appropriate $2,500 of General Fund Reserve monies to the
City Clerk budget (#1: Resolution No. 2018-059, #2: Resolution
No. 2018-060)
Motion passed 4:0 by a roll-call vote. Bourbeau Absent.
Deputy City Manager/ City Clerk Christensen clarified and confirmed with Council
that the motion authorizing Mayor O’Malley and Mayor Pro Tem Fonzi to write
the argument in favor of the Measure would amend Draft Resolution B to add a
sentence at the end of Section 1 stating “Mayor O’Malley and Mayor Pro Tem
Fonzi will be responsible to write an argument in favor of the Ballot Measure.”.
MOTION: By Mayor O’Malley and seconded by Council Member Sturtevant to
have Mayor O’Malley and Mayor Pro Tem Fonzi act as the primary
ballot measure writers for the question relating to the term of the
elected mayor, adding a sentence at the end of Section 1 of Draft
Page 10 of 44
ITEM NUMBER: A-1
DATE: 07/10/18
Resolution B stating “Mayor O’Malley and Mayor Pro Tem Fonzi will
be responsible to write an argument in favor of the Ballot
Measure.”, and if needed, authorizing Council Members Sturtevant
and Bourbeau to write any rebuttal.
Motion passed 4:0 by a roll-call vote. Bourbeau Absent.
Mayor O’Malley recessed the meeting at 7:50 p.m.
Mayor O’Malley reconvened the meeting at 7:57 p.m.
2. Marketing Update Year End 2017-2018 & New Marketing Plan 2018-2019
Fiscal Impact: None.
Recommendation: Council receive and file Marketing Update for Fiscal
Year End 2017-2018 and new Marketing Plan for Fiscal Year 2018-2019.
[City Manager]
Deputy City Manager Banish gave the staff report and answered questions from the
Council. Stephanie Sawyer from Verdin Marketing also gave a brief presentation and
answered questions from the Council. Amanda Diefenderfer of Big Red Marketing
answered questions from Council.
Deputy City Manager Banish provided the City Council with a copy of the 2018-2019
Calendar of Events (Exhibit A).
PUBLIC COMMENT:
The following citizens spoke on this item: None.
Mayor O’Malley closed the Public Comment period.
The Council commended and received and filed the report.
3. El Camino Real (North) and San Anselmo Road (East) Pavement
Rehabilitation Construction Award
Fiscal Impact: $2,122,300 from various road funding sources.
Recommendations: Council:
1. Award a construction contract for $1,591,431 to Ferravanti Grading
and Paving for the El Camino Real (North) and San Anselmo Road
(East) Pavement Rehabilitation Project (Project No. C2016R01).
2. Authorize the City Manager to execute a contract with Ferravanti
Grading and Paving in the amount of $1,591,431 for the construction of
the El Camino Real (North) and San Anselmo Road (East) Pavement
Rehabilitation Project.
3. Authorize the Administrative Services Director to appropriate an
additional $338,600 in Local Transportation Fund balance toward the
El Camino Real (North) and San Anselmo Road (East) Pavement
Rehabilitation Project.
Page 11 of 44
ITEM NUMBER: A-1
DATE: 07/10/18
4. Authorize the Director of Public Works to file a Notice of Completion
with the County Recorder upon satisfactory completion of the project.
[Public Works]
Public Works Director DeBar gave the staff report and answered questions from the
Council.
PUBLIC COMMENT:
The following citizens spoke on this item: None.
Mayor O’Malley closed the Public Comment period.
MOTION: By Mayor Pro Tem Fonzi and seconded by Council Member
Sturtevant to:
1. Award a construction contract for $1,591,431 to Ferravanti
Grading and Paving for the El Camino Real (North) and San
Anselmo Road (East) Pavement Rehabilitation Project (Project
No. C2016R01).
2. Authorize the City Manager to execute a contract with
Ferravanti Grading and Paving in the amount of $1,591,431 for
the construction of the El Camino Real (North) and San
Anselmo Road (East) Pavement Rehabilitation Project.
3. Authorize the Administrative Services Director to appropriate
an additional $338,600 in Local Transportation Fund balance
toward the El Camino Real (North) and San Anselmo Road
(East) Pavement Rehabilitation Project.
4. Authorize the Director of Public Works to file a Notice of
Completion with the County Recorder upon satisfactory
completion of the project. (Contract No. 2018-004)
Motion passed 4:0 by a roll-call vote. Bourbeau Absent.
COUNCIL ANNOUNCEMENTS AND REPORTS:
Council Members made brief announcements.
D. COMMITTEE REPORTS:
The following Council Members gave brief update reports on their committees since
their last Council meeting:
Mayor O’Malley
1. Ad Hoc Animal Shelter Committee
Mayor O’Malley dissolved the ad hoc Animal Shelter Committee noting it was no longer
needed.
Mayor Pro Tem Fonzi
1. City of Atascadero Design Review Committee
Page 12 of 44
ITEM NUMBER: A-1
DATE: 07/10/18
Council Member Moreno
1. Economic Vitality Corporation, Board of Directors (EVC)
E. INDIVIDUAL DETERMINATION AND / OR ACTION: None
F. ADJOURN
Mayor O’Malley adjourned the meeting at 8:56 p.m.
MINUTES PREPARED BY:
______________________________________
Amanda Muther
Deputy City Clerk
The following exhibits are available for review in the City Clerk’s office:
Exhibit A – 2018-2019 Calendar of Events provided by Deputy City Manager Banish
APPROVED:
Page 13 of 44
ITEM NUMBER: C-1
DATE: 07/10/18
Atascadero City Council
Staff Report - City Manager’s Office
Animal Shelter Services Agreement –
Amendment to the Current Animal Services
Memorandum of Agreement
RECOMMENDATIONS:
Council:
1. Authorize the City Manager to send a letter to each of the signatories of the
Agreement for Allocation of Construction and Financing Costs for an Animal
Services Shelter rescinding the City’s letter dated October 30, 2017 regarding the
Countywide Animal Shelter - Notice of Conditional Withdrawal from the
Agreement.
2. Authorize the City Manager to execute Amendment #1 to the Agreement for
Allocation of Construction and Financing Costs for an Animal Services Shelter in
substantial conformance with the attached version .
DISCUSSION:
Historically, all seven incorporated cities in the County have, in turn, contracted with the
County for animal services and all seven cities, together with the County, have shared
the cost of animal services.
The County currently operates a single animal shelter to house and care for stray and
owner relinquished animals in San Luis Obispo. In April of 2015, the County Board of
Supervisors directed County staff to replace the anima l 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. Under the proposal, the City of Atascadero’s costs for animal
control services, including both field services and shelter services, would increase
significantly.
On February 14, 2017, the Council considered whether or not to participa te in the new
shelter. The Council was very concerned with the projected costs of such services, but
given the lack of viable alternatives at the time, the Council directed the City Manager to
execute the agreement. Because the cost of the facility’s construction and operation
Page 14 of 44
ITEM NUMBER: C-1
DATE: 07/10/18
would have significantly increased the costs to participating cities, the City of Atascadero
and the City of Paso Robles jointly continued to explore other options for service delivery.
After further review of the possible alternative options available to the City, including the
construction and operation of a new, North County Animal Shelter; and due to the serious
nature of the concerns expressed by both council bodies in regards to the terms of the
Countywide Agreement, on October 30, 2017 the cities of Paso Robles and Atascadero
both delivered official notification to the County and to the other cities within the County,
that the two Cities were withdrawing from that agreement. That decision would have
resulted in a significant financial impact on the County and all of the other cities in the
County, and the other Cities understandably expressed a strong desire for both
Atascadero and Paso Robles to remain a participant in the countywide shelter. The other
cities in the County and the County itself are relying on the participation of all jurisdictions
to lower the costs that each faces. Atascadero and Paso Robles together account for
more than a third of all of the animal-nights incurred at the County shelter. Without the
participation of the two North County cities and their immediately surrounding
unincorporated areas, the annual costs to the other cities continuing to participate in the
County shelter would increase significantly.
Since the decision last October, to withdraw from the Countywide Agreement, the cities
of Paso Robles and Atascadero, and the County of San Luis Obispo have continued to
communicate, meet and work closely together in an attempt to achieve certain
modifications to the countywide shelter agreement that would help alleviate some of the
Council’s previously expressed concerns and allow the City to participate in a modified
Agreement. Those discussions have led to a revised proposal from the County. Among
the significant changes, the County has committed to:
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 partners, not
customers of the County.
Although we believe that a North County shelter could operate animal control services at
least as cost-effectively as can be achieved under the County proposal, there is certainly
some risk that our costs could be higher. The County has extensive support resources
and a Doctor of Veterinary Medicine manages the County Shelter. Currently, neither
Atascadero nor Paso Robles are required to devote significant staff time to animal control
services. This would definitely change with the development and operation of a North
County shelter. The additional responsibilities and workload would impact limited staff
time and energy now devoted to other, higher-priority programs. These considerations,
along with others, and the proposed changes as put forth in the amendment led the City
of Paso Robles to approve the modified agreement with the County.
With the City of Paso Robles deciding to remain with the County agreement, a North
County Animal Shelter, serving both Atascadero and Paso Robles is no longer an option.
Because of significant fixed costs, the City of Atascadero could not cost effectively build
Page 15 of 44
ITEM NUMBER: C-1
DATE: 07/10/18
and operate an animal shelter serving only the City of Atascadero. The County has made
a commitment to work toward reducing costs and to work together as partners with the
cities in providing animal services.
The City of Paso Robles and the County of San Luis Obispo have already conside red
and approved the modified agreement. The other cities plan to agendize this for their last
meetings in July. 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.
FISCAL IMPACT:
The proposed changes to the Agreement will reduce costs for the City of Atascadero.
The estimated savings from the original county-wide agreement will depend on interest
rates, actual savings realized and City of Atascadero actual animal intake reductions.
Amendment savings to the City of Atascadero are estimated to be between $6,000 -
$70,000 annually.
ALTERNATIVES:
1. Take no action;
2. Provide alternative direction to staff.
ATTACHMENTS:
1. Proposed Amendment #1 to the Agreement for Allocation of Construction and
Financing Costs
2. Agreement for Allocation of Construction and Financing Costs
Page 16 of 44
AMENDMENT NUMBER 1 TO THE
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 AMENDMENT (“Amendment”), dated for reference as of June 5, 2018, to the Agreement (defined
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 “Party”).
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 Avenue 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 ways 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 Seventy 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
County-Only Costs.
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 17 of 44
ii. 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:
i. Targeted education campaigns
ii. Pro-active and targeted programs such as catch, spay/neuter, and release programs
iii. 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
ii. Pet owner education programs
iii. Outreach to constituents
iv. 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.
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 18 of 44
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:
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 19 of 44
Dated: _______________ CITY OF SAN LUIS OBISPO
_____________________ ____________________________
City Clerk By:
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 20 of 44
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.
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 21 of 44
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 $14,500,000 and in no such event
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 22 of 44
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 NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 23 of 44
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 NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 24 of 44
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.
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
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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.
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 26 of 44
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 NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 27 of 44
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 NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 28 of 44
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
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 29 of 44
EXHIBIT B
865 Oklahoma Ave
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 30 of 44
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%
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
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EXHIBIT D
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 1
Page 32 of 44
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 2
Page 33 of 44
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 2
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ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 2
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ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 2
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ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 2
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Animal Services
Animal Services
Animal Services
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 2
Page 38 of 44
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 2
Page 39 of 44
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 2
Page 40 of 44
Needs Assessment, Feasibility, and Building Program Study"
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 2
Page 41 of 44
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 2
Page 42 of 44
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 2
Page 43 of 44
ITEM NUMBER: C-1
DATE: 07/10/18
ATTACHMENT: 2
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