Item No. 4
Town of Atherton
CITY COUNCIL STAFF REPORT – CONSENT AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: STEVE MCCULLEY, CHIEF OF POLICE
DATE: APRIL 15, 2026
SUBJECT: ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AN AMENDMENT TO THE ANIMAL CONTROL AGREEMENT
BETWEEN THE COUNTY OF SAN MATEO AND TOWN FOR A THREE-YEAR TERM BEGINNING JULY 1, 2026.
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution authorizing the City Manager to execute an agreement with the County of San Mateo (the County) to amend the Animal Control agreement between the County and the Town for a term of three years beginning July 1, 2026.
BACKGROUND
Animal control has been one of the longest-running regional/shared services in San Mateo County.
Since 1952, the County has contracted with the Peninsula Humane Society & SPCA (PHS) for animal control field and sheltering service. All 20 cities in the County have, in turn, contracted with the County for these services. Historically, cities have taken advantage of economies of scale in pooling resources to achieve lower service costs than each city could likely achieve by providing its own services.
PHS provides animal control services in a County-owned 45,000 square foot building at 12 Airport Boulevard in San Mateo. The mandated animal control service functions at the Airport Boulevard facility include receiving and housing stray animals; serving as a location for the public to look for lost pets or to surrender animals; sheltering animals; operating a spay/neuter clinic; and operating a vaccination clinic. For public convenience, licensing, micro-chipping, veterinary care, animal behavior work, and field services, staff are at this location and respond to calls for service in the community.
Animal Control Agreement
April 15, 2026
2346840.1 14537.007
On January 5, 2021, the County released a request for proposals to 71 organizations for an Animal Care, Control, and Shelter Services Contractor serving San Mateo County. Two contractors submitted proposals on February 18, 2021 (Peninsula Humane Society & SPCA and Partners in Animal Care & Compassion/Pets in Need).
On March 4, 2021, a review committee composed of nine reviewers, including a Deputy County Manager, a San Mateo County Fiscal Officer, five reviewers from various San Mateo County cities, and subject-matter experts from Los Angeles and San Bernardino, evaluated the proposals.
The evaluation determined that both proposals were acceptable; however, Peninsula Humane Society & SPCA (PHS) scored higher overall.
Contract negotiations with PHS started on March 24th. The negotiating team included the County Manager, County Counsel, the County Animal Control Manager, and six city representatives.
Negotiations were amicably concluded on April 3, 2021, with the following agreements:
ANALYSIS
Contract negotiations with PHS started on March 24, 2021. The negotiating team included the County Manager, County Counsel, the County Animal Control Manager, and six city representatives. Negotiations were amicably concluded on April 3, 2021.
Per the contract term, Animal Control services provided by PHS conclude on June 30, 2026. There is a clause in the contract that reads as follows:
1. Term
Except as otherwise provided herein, and subject to compliance with all terms and conditions, the term of this Agreement shall be from July 1, 2021, through June 30, 2026. The parties may extend the term by an additional three years if they mutually agree in writing. This Agreement becomes effective only after all jurisdictions identified on Exhibit D as Participating Cities adopt it by entering into the animal control services agreement between the County and the Participating Cities. If such County/Services Agreement is not adopted by all jurisdictions shown on Exhibit D, this Services Agreement is null and void in its entirety unless Contractor and any of the jurisdictions shown on Exhibit D agree to use it as the basis for a Services Agreement applicable to those parties providing such written consent, with such changes in payment, scope of service, and other terms as the parties may agree.
The County has met with the President of PHS, and both parties agree to extend the Animal Care and Control Services contract for an additional 3 years, until June 30, 2029.
As the council will recall, the PHS contract was developed in concept and reviewed by a working group of County managers, City Managers, and other interested city participants (e.g., personnel from some Police Departments). The San Mateo County City Managers Association (SMCCMA) has also established a standing committee to conduct an in-depth review of the contract, Animal Control Agreement
April 15, 2026
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performance audits, cost-sharing formulas, and the strategic direction for countywide animal control services. The SMCCMA committee was directly involved with the County during contract negotiations and had a seat at the table with PHS and the County.
The contract has performed effectively, providing the cities with reliable animal control services and significantly reducing complaints compared to previous years.
Provisions of the Amendment:
Only a few modifications have been made to the agreement, as outlined below:
4.1.a The County will pay Animal Control Contractor the following agreed-upon amounts.
These costs are to be reimbursed by the Cities as provided in Section 3.7 above.
Fiscal Year Amount
2021-22 $6,189,290.95
2022-23 $6,327,480.28
2023-24 $6,499,455.67
2024-25 $6,674,024.00
2025-26 $6,858,739.01
2026-27 $7,037,138.11
2027-28 $7,220,177.44
2028-29 $7,407,977.72
This is less than a 3% annual increase for the contracted animal control services. Contractual increases are pass-thru costs to local jurisdictions.
Section 4 County Responsibilities under 4.1 of the agreement are amended to read as follows:
4.1.b The County will pay Animal Licensing Contractor the following agreed-to amounts.
These costs are to be reimbursed by the Cities as provided in Section 3.7 above (the table in
4.2 includes the payment for the PetData contract of approximately $1,096,827 for five years, at $219,365 annually, which will end on June 30, 2027).
Current Contract
2022-2027
Amount
One-year license $4.28 per license
Multi-year license $4.28 for the first year and $2 for each additional year
Late fees collected $2.50 collection service fee for each license Replacement tags $4.28 per tag
Bank and supply fees Actual cost
Animal Control Agreement
April 15, 2026
2346840.1 14537.007
Section 4 County Responsibilities under 4.2 of the agreement is amended to read as follows:
4.2 The County shall provide the administrative services as outlined in this Agreement for the following estimated amounts to be charged to and paid by the Cities. Costs may vary as labor negotiations and internal service charges are negotiated at a Countywide level. Cities will be invoiced only for the actual costs of providing the services outlined in this Agreement and are to be reimbursed by the Cities as provided in Section 3.7 above.
Fiscal Year Amount
2021-22 $790,835
2022-23 $790,375
2023-24 $814,086
2024-25 $822,227
2025-26 $846,894
2026-27 $872,301
2027-28 $898,470
2028-29 $925,424
Section 4 County Responsibilities under 4.3.j has been removed from the agreement.
This section was to arrange a performance audit or fiscal assessment of the Animal Control Contractor PHS. The county issued an RFP in January to find a vendor to audit PHS. It felt that it would not be fiscally responsible to turn around within three years and conduct another audit, and that it would wait until the new contract in 2027 and write it into the new contract.
This is the reason for removal.
Section 5 General Provisions under 5.8 Term and Termination of the agreement is amended to read as follows:
5.8 Term and Termination. Subject to compliance with all terms and conditions, the term of this Agreement shall be from July 1, 2021, through June 30, 2029.
FISCAL IMPACT
Costs are budgeted for and consistent with the current agreement and will continue under the amended agreement for the next three years.
GOAL ALIGNMENT
Goal E – Strengthen Community Engagement and Transparency Goal F – Be a Forward-Thinking, Well-Managed, Well-Planned Town Animal Control Agreement
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PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item listed, at least 72 hours before the meeting, both in print and electronically. Information about this item is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders, including but not limited to media outlets, school districts, Menlo Park Fire District, service providers (water, power, and sewer), and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item ____ has or __X__ has not been before a Town Committee or Commission.
ATTACHMENTS
1. Amended Animal Control Agreement