Agenda Packet — Hercules City Council, May 24, 2022 (part 1 of 2)

Tuesday, May 24, 2022
6:30 PM
City of Hercules
111 Civic Drive
Hercules, CA 94547
City Council
Mayor Dion Bailey
Vice Mayor Alexander Walker-Griffin
Council Member Dan Romero
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Lauren Berges, City Clerk
Meeting Agenda
In-Person in Council Chambers or
Zoom ID: 824 7016 7417
Zoom Passcode: 059522
Zoom Phone Number: 1-669-900-6833

May 24, 2022City Council Meeting Agenda
See last pages of agenda for information regarding meeting procedures To view webcast of meetings, live or on demand, go to the City's website at www.ci.hercules.ca.us I. SPECIAL MEETING - CLOSED SESSION – 6:30 P.M. CALL TO ORDER - ROLL CALL II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

1. 22-184 Conference With Legal Counsel - Liability Claim (Government Code Section 54956.95) In one (1) matter.

Claimant: Velasquez- Claim #GL-014171
IV. REGULAR MEETING – 7:00 P.M. CALL TO ORDER - ROLL CALL V. REPORT ON ACTION TAKEN IN CLOSED SESSION
VI. PLEDGE OF ALLEGIANCE
VII. MOMENT OF SILENCE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 22-185
Presentation from West Contra Costa Unified School District Board Trustee, Jamela Smith-Folds

2. 22-188 Farewell to Community Development Director, Robert Reber

3. 22-189 Welcome to the new Community Development Director, Tim Rood IX. AGENDA ADDITIONS/DELETIONS
X. PUBLIC COMMUNICATIONS
This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

In accordance with Executive Order N-25-20 and guidance from the California Department of Public Health on gatherings, remote public participation is allowed as follows:

The public may log into the Zoom meeting (refer to agenda cover for Zoom login information) and provide their public comment (3 minute time limit). If attending in-person, please fill out a speaker card and provide to the City Clerk. When the public comment period is open for the item you wish to speak on, use the "raise hand" feature in Zoom (or press *9 if connecting via phone audio only) at the time the Mayor calls for public comment. Please wait your turn and once you are brought into the meeting, state

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May 24, 2022City Council Meeting Agenda
your name and city of residence for the record.

For additional alternatives to providing public comments please refer to the procedural instructions on how to Participate and Watch the Hercules City Council Meeting on the last pages of the agenda.

All public comments are allowed up to 3 minutes to relay their message or concern. A limit of 30 minutes will be devoted to taking public comment at this point in the agenda. If any speakers remain at the conclusion of the initial 30 minute period, time will be reserved at the conclusion of the meeting to take the remaining comments.

XI. PUBLIC HEARINGS

1. 22-181 All-Electric Building Ordinance
Amendments to the Hercules Municipal Code, Title 9 - Building Regulations, modifying Chapter 5 - Electrical Code
All-Electric Building - Staff Report
Attach 1 - All-Electric Building - Draft Ordinance
Attach 2 - All-Electric Building - PC Resolution - Final Attach 3 - Staff Report to City Council - 2021-9-28
Attach 4 - Staff Report to City Council - 2022-01-11
Attach 5 - Staff Report to City Council - 2022-02-08
Attachments:

XII. CONSENT CALENDAR

1. 22-183 Minutes
Recommendation: Approve the Regular Meeting Minutes of May 10, 2022.

Meeting Minutes May 10, 2022Attachments:

2. 22-178 Emergency Declaration Extension
Recommendation: Adopt a resolution authorizing virtual city council, commission and committee meetings during a declared state of emergency pursuant to government code 54953 (AB 361).

Staff Report - AB 361
Attach 1 - AB 361 Resolution
Attach 2 - Recommendations for Public Meetings
Attachments:

3. 22-177 AB 1276 - Single-Use Foodware Reduction Enforcement Requirements
Recommendation: Waive the Second Reading and Approve Final Adoption of an Ordinance Adding Title 5, Chapter 12, Sections 5-12.01 to 5-12.06 to the Hercules Municipal Code Regulating the Provision of Single-Use Foodware Accessories and Standard Condiments.

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May 24, 2022City Council Meeting Agenda
Single Use Plastics Ordinance staff report - 220524
Single-Use Foodware AB1276 SR 220510 0 jpt
AB 1276 Foodwre Ordinance
SR -220426 -AB1276
AB 1276 Text
Attachments:

4. 22-179 Accept the Investment Report for the Quarter Ending March 31, 2022 Recommendation: Accept the investment report for the quarter ending March 31, 2022.

Staff Report - Investment Quarterly Report Ending 03-31-2022 Attach 1 - Quarterly Investment Report
Attachments:

XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-186 Adoption of City Council Strategic Plan 2022-2023 and Multi-Year Priorities
Recommendation: Receive and file report on Strategic Planning Workshop and adopt by Resolution the Hercules City Council 2022-2023 and Multi-Year Priorities.

Staff Report - Adoption of City Council 2022-2023 and Multi-year Priorities Attach 1 - Resolution - City Council 2022-2023 and Multi-year Priorities Attach 2 - City Council 2022-2023 and Multi-year Priorities Attachments:

2. 22-175 Program Design Considerations for Yiftee Digital Gift Card Pilot Program
Recommendation: Approve the Yiftee Pilot Digital Card program components and implementation measures.

Staff Report - Yiftee Gift Card Program Design 5-24-22
Attach 1 - Yiftee's Gift Card Program Summary Presentation Attach 2 - Hercules Community Gift Card Program
Attach 3 - Resolution
Attachments:

3. 22-187 Contract with Contra Costa County to Provide Animal Control Services
Recommendation: Staff recommends that the City Council approve a Resolution authorizing the City Manager to execute an updated agreement with the Contra Costa County Animal Services Department ("Animal Services").

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May 24, 2022City Council Meeting Agenda
Staff Report - Updated Agreement with Contra Costa County Animal Services Department Attach A - Resolution - Updated Agreement with Contra Costa County Animal Services Department Exhibit 1 - Hercules- City Service Agreement - Final
Attach B - City – County Animal Services Agreement, Hercules, July 1, 2005 Attach C - Hercules Animal Services Agreement Presentation, January 11, 2022 Attach D - Contra Costa Animal Services (CCAS) - Serving Our Community! – CCAS Serving Attach E - Letter of Concern from the Animal Rights Coalition Regarding Contra Costa County Animal Services Agreement March 22, to 18 Incorporated Cities: New Fees July 2022 Attach F - Animal Services Letter of April 8, 2022, Regarding Recent Citizen Concerns Attachments:

4. 22-182 Discussion Regarding Juneteenth Commemoration and Administrative Requirements for Display of a Ceremonial Pan-African or Juneteenth Flag
Recommendation: Receive report, discuss, and provide direction to staff.

Staff Report - Pan-African Flag 220510
AP 16 Flag Policy
Attachments:

XIV. PUBLIC COMMUNICATIONS
This time is reserved for members of the public who were unavailable to attend the Public Communications period during Section X of the meeting, or were unable to speak due to lack of time. The public speaker requirements specified in Section X of this Agenda apply to this Section.

XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

AND FUTURE AGENDA ITEMS
This is the time for brief announcements on issues of interest to the community. In accordance with the provisions of the Brown Act, matters which do not appear on this agenda but require City Council discussion may be either (a) referred to staff or other resources for factual information or (b) placed on a future meeting agenda.

XVI. ADJOURNMENT
The next Regular Meeting of the City Council will be held on Tuesday, June 14, 2022 at 7:00p.m. in the Council Chambers.

Agendas are posted in accordance with Government Code Section 54954.2(a) or Section 54956.

Members of the public can view electronic agendas and staff reports by accessing the City website at www.ci.hercules.ca.us and can receive e-mail notification of agenda and staff report postings by signing up to receive an e-notice from the City’s homepage. Agendas and staff reports may also be obtained by contacting the Administrative Services Department at (510) 799-8215 (Posted: May 19, 2022)

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May 24, 2022City Council Meeting Agenda

INSTRUCTIONS ON HOW TO PARTICIPATE AND WATCH THE HERCULES CITY COUNCIL AND PLANNING

COMMISSION HYBRID MEETINGS
Attend in Person: Hercules City Council Chambers – 111 Civic Drive, Hercules, CA 94547 Attend via Zoom Teleconference: Details provided below and zoom webinar login, passcode and phone numbers provided on the agenda cover.

Please note: Updated COVID-19 safety protocols will be posted outside the City Council Chambers. Please review this information before entering the Council Chambers.

How to Submit Public Comments
In Person: Attend meeting at the Hercules City Council Chambers, fill out a public speaker card located on the side table and submit it to the City Clerk.

Via Zoom: Members of the public may submit a live remote public comment via Zoom video conferencing.

Download the Zoom mobile app from the Apple Appstore or Google Play. If you are using a desktop computer, you can test your connection to Zoom by clicking here or go to: https://www.zoom.us/join. Zoom also allows you to join by phone at +1-669-900-6833 or +1-929-205-6099 or +1-253-215-8782. • Speakers will be asked to provide their name and city of residence, although providing this information is not required for participation.
• Each speaker will be allowed up to 3 minutes to speak and provide comment. A limit of 30 minutes will be devoted to taking public comment during the first public comment period on the agenda. If any speaker comments have not been accommodated prior to the initial 30 minute period, time will be reserved at the conclusion of the meeting for the remaining public comments. • Speakers will be muted until their opportunity to provide public comment.

When the Mayor opens the comment period for the item you wish to speak on, please use the “raise hand” feature (or press *9 if connecting via telephone) which will alert staff that you have a comment to provide and press *6 to unmute.

Written Comments Submitted Electronically: All comments received before 3:00 p.m. the day of the meeting will be provided to the City Council prior to the meeting and posted to the City’s agenda website and located by clicking on the “meeting details” tab. Written comments received after 3:00 p.m. will be provided to City Council and posted to the agenda website the following day. Written comments will not be read aloud during the meeting. Email comments to [email protected]. Please indicate which item on the agenda you are commenting on in the subject line of your email.

Written comments submitted in person or via mail: Additional ways to provide your public comment is to either drop off your comment in person to the front desk receptionist located in the City Hall lobby or to mail your comment to City of Hercules, ATTN: City Clerk – Public Comment (Meeting Date), 111 Civic Drive, Hercules, CA 94547 in time to reach the City Clerk no later than 3:00 p.m. on the day of the meeting or you can submit your comment by telephone by calling (510) 799-8215 no later than 3:00 p.m. on the meeting date.

If you need assistance with public comment, please contact: Lauren Berges, City Clerk at [email protected] or by calling (510) 799-8215.

All public comments will become part of the official meeting record. The City cannot guarantee that its network and/or the website will not be uninterrupted. To ensure that the City Council receives your written comments, you are strongly encouraged to submit your comments in writing in advance of the meeting by 3:00 p.m. on the day of the Council or Commission meeting.

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May 24, 2022City Council Meeting Agenda

OTHER WAYS TO WATCH THE MEETING
Live on Channel 28: City Council meetings will replay the following Thursday at 7:00 p.m. and Saturday at 1:00 p.m.

Planning Commission meetings will replay the following Wednesday at 7:00 p.m. and Saturday at 9:00 a.m.

Video Streamed Live on the City’s Website:

To view City Council and Planning Commission meeting videos online go to: Hercules Meeting Videos.

Instructions to view Live or On-Demand Videos from the City’s website:

1. Go to: Hercules Meeting Videos or https://hercules.legistar.com/calendar.aspx.

2. Locate the desired meeting and date.

3. Click the associated “Video” link (Video status is as follows):

Video = Video is available for on demand viewing.

In Progress = Video is available for viewing during live recording.

Not Available = Video is either unavailable or has not been recorded.

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May 24, 2022City Council Meeting Agenda

THE HERCULES CITY COUNCIL ADHERES TO THE FOLLOWING POLICIES,

PROCEDURES AND REGULATIONS REGARDING CITY COUNCIL MEETINGS

1. SPECIAL ACCOMODATIONS: In compliance with the Americans with Disabilities Act, if you require special accommodations to participate at a City Council meeting, please contact the City Clerk at 510-799-8215 at least 48 hours prior to the meeting.

2. AGENDA ITEMS: Persons wishing to add an item to an agenda must submit the final written documentation 12 calendar days prior to the meeting. The City retains the discretion whether to add items to the agenda. Persons wishing to address the City Council otherwise may make comments during the Public Communication period of the meeting.

3. AGENDA POSTING: Agendas of regular City Council meetings are posted at least 72 hours prior to the meeting at City Hall, the Hercules Swim Center, Ohlone Child Care Center, Hercules Post Office, and on the City’s website (www.ci.hercules.ca.us),

4. PUBLIC COMMUNICATION: Persons who wish to address the City Council should complete the speaker form prior to the Council's consideration of the item on the agenda.

Anyone who wishes to address the Council on a topic that is not on the agenda and is relevant to the Council should complete the speaker form prior to the start of the meeting. Speakers will be called upon during the Public Communication portion of the meeting. In accordance with the Brown Act, the City Council may not take action on items not listed on the agenda. The Council may refer to staff any matters brought before them at this time and those matters may be placed on a future agenda.

In the interests of conducting an orderly and efficient meeting, speakers will be limited to three (3) minutes.

Anyone may also submit written comments at any time before or during the meeting.

5. CONSENT CALENDAR: All matters listed under Consent Calendar are considered to be routine and will be enacted by one motion. There will be no separate discussion of these items unless requested by a member of the Council or a member of the public prior to the time the City Council votes on the motion to adopt.

6. LEGAL CHALLENGES: If you challenge a decision of the City Council in court, you may be limited to raising only those issues you or someone else raised at the meeting or in written correspondence delivered at, or prior to, the meeting. Actions challenging City Council decisions shall be subject to the time limitations contained in Code of Civil Procedure Section 1094.6.

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1 CITY COUNCIL STAFF REPORT

DATE: May 24, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Robert Reber, Community Development Director Larissa Alchin, M-Group, Contract Planner

SUBJECT: Amendment to the Hercules Municipal Code, Title 9 —Building Regulations, modifying Chapter 5—Electrical Code

RECOMMENDED ACTION:

Staff recommends that the City Council waive the first reading and approve for introduction the proposed amendments to the City’s existing Building Regulations to require that certain new and rebuilt buildings be required to be built as “all-electric,” that is, without natural gas infrastructure.

FISCAL IMPACT OF RECOMMENDATION:

There are no direct fiscal impacts associated with this item.

BACKGROUND & DISCUSSION:

State law establishes a process that allows local adoption of energy standards that are more stringent than the statewide standards permitted by Title 24 of the California Code of Regulations (CCR), which is commonly referred to as “the Building Code.” The se local amendments to energy standards are called “Reach Codes” because they are reaching beyond the minimum requirements with the goal of decreasing greenhouse gas (GHG) emissions.

In mid -2021, the City Council directed Staff to bring forward potential Reach Code recommendations that would apply to new construction. At the September 28, 2021, meeting, following staff’s presentation on the health, safety, and environmental concerns associated with natural gas use in buildings (see Attachment 3), Council directed staff to return with additional information regarding the range of ordinance types, example ordinance, feasibility, and California power grid capacity. Staff returned for the January 11, 2022, City Council meeting with the requested information (see Attachment 4). Because the City of Hercules contracts with Contra Costa County’s Building Department for building plan

2 check services and inspections, Council weighed the options of adopting a stand -alone ordinance or adopting by reference the County’s All-Electric Ordinance and directed City staff to report back at a later date once the County adopted its own ordinance.

Following the Contra Costa County Board of Supervisors’ adoption of an All-Electric Ordinance on January 18, City staff returned to the Hercules Council on February 8, 2022, to present the County’s ordinance and request direction on drafting an ordinance for Hercules (see Attachment 5). The County ordinance requires all newly constructed buildings that are any of the following to be all-electric buildings:
 Residential
 Detached accessory dwelling units
 Hotel
 Office
 Retail (including restaurants)

Rather than adopting the County’s ordinance by reference, the City Council directed staff to draft an all -electric ordinance to amend the 20 19 California Building Standards Code to require all of the following newly constructed buildings be all-electric, with no natural gas infrastructure:
 Residential
 Hotel
 Office
 Accessory dwelling units

At its regular meeting on April 12, 2022, the Planning Commission reviewed and voted to recommend for Council adoption a draft ordinance aligned with Council’s prior direction but with the following modifications:
a. Change “Accessory Dwelling Units” to “Detached Accessory Dwelling Units”; b. Clarify that rebuilding of existing structures would be subject to the ordinance; and
c. Revise the exception for laboratories and medical buildings to apply only to laboratory and research-specific functions and not for general heating and appliance purposes.

The all-electric building requirements of the ordinance would not apply to any of the following uses:
 Emergency facilities and emergency generators
 Restaurants
 Retail

A draft Ordinance (Attachment 1) based on Planning Commission’s resolution (Attachment 2) is provided for the City Council’s review and consideration.

3 ATTACHMENTS:

1. Draft Ordinance – All-Electric Building Decarbonization

2. Planning Commission Resolution No. 22-06

3. Staff Report to City Council – September 28, 2021

4. Staff Report to City Council – January 11, 2022

5. Staff Report to City Council – February 8, 2022

Ordinance No. (Draft)

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ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERCULES AMENDING C H A P T E R 5 O F TITLE 9 OF THE H E R C U L E S M U N I C I P A L C O D E

TO REQUIRE CERTAIN NEWLY CONSTRUCTED BUILDINGS TO BE ALL - ELECTRIC BUILDINGS.

WHEREAS, the 2022 Edition of the California Building Standards Code (CBSC) will take effect throughout California on January 1, 2023, and provides standards for both the use of natural gas and electricity for substantially the same purposes, such as heating buildings, cooking food, etc.; and

WHEREAS, Health and Safety Code Sections 17958.5 and 18941.5 authorizes local agencies to establish more restrictive building standards than those specified in the CBSC, including, but not limited to, green building standards that are reasonably necessary because of local climatic, geological, or topographical conditions based on and in accordance with the findings required by Health and Safety Code Section 17958.7 and the other requirements imposed by Section 17958.7; and

WHEREAS, consistent with Health and Safety Code sections 17922, 17958, 17958.5, 17958.7, and 18941.5 as well as Public Resources Code section 25402.1(h)(2) and Government Code sections 50020 through 50022.10, the City of Hercules desires to establish more restrictive standards than those contained in the 2022 California Energy Code to require all newly constructed residential buildings, hotels, and office buildings to be constructed as all-electric buildings without natural gas infrastructure.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERCULES DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. RECITALS. The above recitals are true and correct. The City Council hereby incorporates the above recitals into this Ordinance by this reference.

SECTION 2. ENVIRONMENTAL REVIEW. This amendment is Categorically Exempt from CEQA pursuant to Section 15061(b)(3) (the “ common sense exemption”) as it can be seen with certainty that there is no possibility the project will have a significant effect on the environment and thus is not subject to CEQA. Adoption of these building standards does not require or authorize any construction or physical impact to the environment, and the standards themselves are intended to reduce greenhouse gas emissions.

SECTION 3. AMENDMENTS. That the City Council of the City of Hercules does hereby amend Hercules Municipal Code, Title 9, Chapter 5, to read as follows:

Sec. 9-5.01 Administration.

These regulations shall be known as the “Electrical Code,” and may be so cited, and will

Ordinance No. (Draft)

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be referred to herein as “this Chapter.”

This Code is one of the technical codes of Building Regulations and is administered under Title 9, Chapter 5 of the Hercules Municipal Code. (Ord. 254 Div. 6 (part), 1987)

Sec. 9-5.02 Adoption by Reference.

The California Electrical Code, 2019 Edition (California Code of Regulations, Title 24 Part 3) based on the 2017 Edition of the National Electrical Code, as published by the National Fire Protection Association, as modified by the State of California and published in the “California Code of Regulations,” is adopted by reference and made a part of this Chapter as though fully set for th herein, subject to the additions and deletions set forth in this Chapter. (Ord. 526 § 6 (part), 2019)

Sec. 9-5.03 Copies on File.

One (1) copy of the 2019 California Electrical Code as adopted by Section 9-5.02 is on file in the office of the Chief Building Official for inspection by the public. (Ord. 526 § 6 (part), 2019)

Sec. 9-5.04 Amendments, Additions and Deletions.

(a) Addition to Chapter 1, Section 101 Scope to read as an additional paragraph as follows:

(1) The Administrative part of this chapter is in addition to the City of Hercules Building Regulations Administrative Code, Title 9, Chapter 1 of the Hercules Municipal Code. Where conflicts occur between this chapter and Title 9, Chapter 1 of the Hercules Municipal Code, the provisions of Title 9, Chapter 1 of the Hercules Municipal Code shall govern. (Ord. 254 Div. 6 (part), 1987)

(b) The 2019 California Energy Code (“CEnC”) is amended by the changes, additions, and deletions set forth in this chapter. Section numbers used below are those of the 2022 California Energy Code.

(1) Section 100.0(e)(2)(A) of CEnC Subchapter 1 (All Occupancies - General Provisions) is amended to read:

A. All newly constructed buildings.

(i) Sections 110.0 through 110.12 apply to all newly constructed buildings and rebuilt buildings within the scope of Section 100.0(a), where rebuilt involves demolition and reconstruction of a building or structure involving the repair or replacement of fifty (50) percent or more of the exterior walls or involving work that exceeds one-half (½) of the appraised value of the structure. In addition, newly constructed buildings shall meet the requirements of Subsection B, C, D, or E, as applicable.

Ordinance No. (Draft)

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(ii) A newly constructed building that is any of the following building types shall be an all-electric building:

a. Residential

b. Detached Accessory Dwelling Units

c. Hotel

d. Office

Exceptions to Section 100.0(e)(2)(A)(ii):
 Laboratory- and research-specific functions within laboratories and medical buildings (general heating and appliance purpos es within laboratories and medical facilities are not exempt).
 Emergency facilities and emergency generators;
 Development projects that have obtained vested rights before the effective date of this subsection pursuant to a development agreement in accorda nce with Government Code section 65866, a vesting tentative map in accordance with Government Code section 66998.1, or other applicable law.

(1) Section 100.1(b) (Definitions) of CEnC Subchapter 1 (All Occupancies – General Provisions) is amended by adding the following definition:

ALL-ELECTRIC BUILDING means a building that has no natural gas or propane plumbing installed within the building, and that uses electricity as the sole source of energy for its space heating (including heating of all indoor and o utdoor spaces of the building), water heating (including heating of indoor and outdoor pools and spas), cooking appliances, and clothes drying appliances. An all -electric building may utilize natural gas for emergency generators.

Sec. 9-5.05 Permits Required.

It shall be unlawful for any person, firm or corporation to install, alter, repair, replace or remodel any electrical system or equipment regulated by this Code. (Ord. 288 Div. 1 (part), 1990)

Sec. 9-5.06 Unsafe Electrical Systems.

All electrical systems or equipment regulated by this Code which are unsafe, or which constitute a fire hazard, or are otherwise dangerous to human life are, for the purpose of this Section, unsafe. Any use of electrical systems or equipment regulated by this Code constituting a hazard to safety, health or public welfare by reason of inadequate maintenance, dilapidation, obsolescence, fire hazard, disaster, damage or abandonment is, for the purpose of this Section, an unsafe use.

Ordinance No. (Draft)

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All such unsafe electrical systems or equ ipment are declared to be public nuisances and shall be abated by repair, rehabilitation, demolition or removal in accordance with the procedures set forth in the Uniform Code for the Abatement of Dangerous Buildings or such alternate procedure as may be a dopted by this jurisdiction. As an alternative, the Building Official or other employee or official of this jurisdiction as designated by the governing body may institute any other appropriate action to prevent, restrain, correct or abate the violation. (Ord. 288 Div. 1 (part), 1990)

SECTION 20. SEVERABILITY. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decisions shall not affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would have adopted the Ordinance, and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be deleted.

SECTION 21. EFFECTIVE DATE AND PUBLICATION. The City Clerk shall certify to the adoption of this Ordinance and shall publish or post the Ordinance as required by law. This Ordinance shall be effective thirty (30) days from date of final adoption.

THE FOREGOING ORDINANCE was first read at a regular meeting of the Hercules City Council on the XX day of _____ 2022, and was passed and adopted at a regular meeting of the Hercules City Council on the XX day of ______ 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dion Bailey, Mayor

Lauren Berges, CMC
City Clerk

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PC Resolution 22-06 – All-Electric Building Ordinance

HERCULES PLANNING COMMISSION
RESOLUTION NO. 22-06

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF

HERCULES RECOMMENDING THAT THE CITY COUNCIL AMEND CHAPTER 5 OF TITLE 9 OF THE HERCULES MUNICIPAL CODE TO REQUIRE CERTAIN NEWLY CONSTRUCTED BUILDINGS TO BE ALL-ELECTRIC BUILDINGS.

WHEREAS, Health and Safety Code Sections 17958.5 and 18941.5 authorizes local agencies to establish more restrictive building standards than those specified in the CBSC, including, but not limited to, green building standards that are reasonably necessary because of local climatic, geological, or topographical conditions based on and in accorda nce with the findings required by Health and Safety Code Section 17958.7 and the other requirements imposed by Section 17958.7; and

WHEREAS, after the staff presentation at its regular meeting on September 28, 2021, the City Council directed staff to retu rn to Council with additional information regarding the range of ordinance types, example ordinance, feasibility, and power grid capacity; and

WHEREAS, after the staff presentation at its regular meeting on January 11, 2022, the City Council directed staff to return to Council following the Contra Costa Board of Supervisors adoption of the County’s All-Electric reach code ordinance; and

WHEREAS, after the staff presentation at its regular meeting on February 8, 2022, the City Council directed staff to draft recommendations to amend the 2022 California Building Standards Code to require all newly constructed residential buildings, hotels, and office buildings to be constructed as all-electric buildings without natural gas infrastructure and to present a draft ordinance amendment incorporating such recommendations to the Planning Commission for its consideration and recommendations; and

WHEREAS, on April 18, 2022, the Planning Commission held a duly noticed public hearing to consider these amendments and did hear and use its independent judgment to consider all said reports, recommendations, and testimony hereinabove set forth.

NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF HERCULES

DOES HEARBY RESOLVE AS FOLLOWS

The foregoing recitals are true and correct and made a part of this Resolution.

DocuSign Envelope ID: 4FF3A56A-12F6-40FB-98DE-4561D2D51EAB

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PC Resolution 22-06 – All-Electric Building Ordinance

NOW, THEREFORE, BE IT FURTHER RESOLVED THAT THE PLANNING

COMMISSION OF THE CITY OF HERCULES RECOMMENDS THAT THE CITY COUNCIL:

1. Find that the ordinance is Categorically Exempt from CEQA pursuant to Section 15061(b)(3) (the “common sense exemption”) as it can be seen with certainty that there is no possibility the project will have a significant effect on the environment and thus is not subject to CEQA. Adoption of these building standards does not require or authorize any construction or physical impact to the environment, and the standards themselves are intended to reduce greenhouse gas emissions

2. Adopt the ordinance attached hereto as Exhibit A amending the Hercules Municipal Code and its Building Regulations by modifying Chapter 5 of Title 9 , with the following revisions to the Section 100.0(e)(2)(A)(ii) of the ordinance:

a. Change subsection (b) from “Accessory Dwelling Units” to “Detached Accessory Dwelling Units”;
b. Clarify that rebuilding of existing homes would be subject to the ordinance; and c. Revise the exception for laboratories and medical buildings to apply only to laboratory- and research -specific functions and not for general heating and appliance purposes.

The foregoing Resolution was duly adopted at a regular meeting of the Planning Commission of the City of Hercules held on the 18
th day of April 2022, by the following vote of the
Commission:

AYES: Morrison, Rubio, Sacramento, Schaufenbil
NOES: None.

ABSTAIN: None.

ABSENT: None.

Hector Rubio, Planning Commission Chair

ATTEST:

Robert Reber
Community Development Director

Exhibit A: Draft Ordinance amending Chapter 5 of Title 9 of the Hercules Municipal Code (Building Regulations)
DocuSign Envelope ID: 4FF3A56A-12F6-40FB-98DE-4561D2D51EAB

Ordinance No. (Draft)

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ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERCULES AMENDING CHAPTER 5 OF TITLE 9 OF THE HERCULES MUNICIPAL CODE

TO REQUIRE CERTAIN NEWLY CONSTRUCTED BUILDINGS TO BE ALL -

ELECTRIC BUILDINGS

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERCULES DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. RECITALS. The above recitals are true and correct. The City Council hereby incorporates the above recitals into this Ordinance by this reference.

SECTION 3. AMENDMENTS. That the City Council of the City of Hercules does hereby amend Hercules Municipal Code, Title 9, Chapter 5, to read as follows:

Sec. 9-5.01 Administration.

These regulations shall be known as the “Electrical Code,” and may be so cited, and will DocuSign Envelope ID: 4FF3A56A-12F6-40FB-98DE-4561D2D51EAB

Ordinance No. (Draft)

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be referred to herein as “this Chapter.”

This Code is one of the technical codes of Building Regulations and is administered under Title 9, Chapter 1 of the Hercules Municipal Code. (Ord. 254 Div. 6 (part), 1987)

Sec. 9-5.02 Adoption by Reference.

The California Electrical Code, 2019 Edition (California Code of Regulations, Title 24 Part 3) based on the 2017 Edition of the National Electrical Code, as published by the National Fire Protection Association, as modified by the State of California and published in the “California Code of Regulations,” is adopted by reference and made a part of this Chapter as though fully set forth herein, subject to the additions and deletions set forth in this Chapter. (Ord. 526 § 6 (part), 2019)

Sec. 9-5.03 Copies on File.

One (1) copy of the 2019 California Electrical Code as adopted by Section 9-5.02 is on file in the office of the Chief Building Official for inspection by the public. (Ord. 526 § 6 (part), 2019)

Sec. 9-5.04 Amendments, Additions and Deletions.

(a) Addition to Chapter 1, Section 101 Scope to read as an additional paragraph as follows:

(b) The 2022 California Energy Code (“CEnC”) is amended by the changes, additions, and deletions set forth in this chapter. Section numbers used below are those of the 2022 California Energy Code.

(1) Section 100.0(e)(2)(A) of CEnC Subchapter 1 (All Occupancies - General Provisions) is amended to read:

A. All newly constructed buildings.

(i) Sections 110.0 through 110.12 apply to all newly constructed buildings within the scope of Section 100.0(a). In addition, newly constructed buildings shall meet the requirements of Subsection B, C, D, or E, as applicable.

(ii) A newly constructed building that is any of the following building types shall be an all-electric building:

DocuSign Envelope ID: 4FF3A56A-12F6-40FB-98DE-4561D2D51EAB

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a. Residential

b. Accessory Dwelling Units

c. Hotel

d. Office

Exception to Section 100.0(e)(2)(A)(ii): Laboratories and medical buildings that include laboratories. Development projects that have obtained vested rights before the effective date of this subsection pursuant to a development agreement in accordance with Government Code section 65866, a vesting tentative map in accordance with Government Code section 66998.1, or other applicable law, are exempt for the requirements of Section 100.0(e)(2)(A)(ii).

(1) Section 100.1(b) (Definitions) of CEnC Subchapter 1 (All Occupancies – General Provisions) is amended by adding the following definition:

ALL-ELECTRIC BUILDING means a building that has no natural gas or propane plumbing installed within the building, and that uses electricity as the sole source of energy for its space heating (including heating of all indoor and outdoor spaces of the building), water heating (including heating of indoor and outdoor pools and spas), cooking appliances, and clothes drying a ppliances. An all -electric building may utilize natural gas for emergency generators.

Sec. 9-5.05 Permits Required.

It shall be unlawful for any person, firm or corporation to install, alter, repair, replace or remodel any electrical system or equipment regulated by this Code. (Ord. 288 Div. 1 (part), 1990)

Sec. 9-5.06 Unsafe Electrical Systems.

All such unsafe electrical systems or equipment are declared to be public nuisances and shall be abated by repair, rehabilitation, demolition or removal in accordance with the procedures set forth in the Uniform Code for the Abatement of Dangerous Buildings or such alternate procedure as may be adopted by this jurisdiction. As an alternative, the Building Official or other employee or official of this jurisdiction as designated by the governing body may institute any other appropriate action to prevent, restrain, correct or DocuSign Envelope ID: 4FF3A56A-12F6-40FB-98DE-4561D2D51EAB

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abate the violation. (Ord. 288 Div. 1 (part), 1990)

AYES:

NOES:

ABSENT:

ABSTAIN:

Dion Bailey, Mayor

Lauren Berges, CMC
City Clerk
DocuSign Envelope ID: 4FF3A56A-12F6-40FB-98DE-4561D2D51EAB 1 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of September 28, 2021

TO: Members of the City Council

SUBMITTED BY: Robert Reber, Community Development Director Larissa Alchin, Contract Assistant Planner

SUBJECT: Discussion of building decarbonization through possible adoption of all- electric building code amendment

RECOMMENDED ACTION:

Discuss and p rovide direction if and w hat type of a ll-electric ordinance should or should not be pursued.

COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:

No Commission or Subcommittee actions or recommendations are yet applicable for this action. If an ordinance were to be considered, it would require Planning Commission review. If Council directs staff to initiate adoption of an all-electric ordinance, staff recommends that the process be completed early enough that it can be approved by the California Energy Commission (CEC) no later than September 2022, prior to the start of the next building code cycle that will take effect January 1, 2023.

FISCAL IMPACT OF RECOMMENDATION:

If Council desires an ordinance be drafted, additional but unknown staff and attorney time will be needed to draft the o rdinance, notice and hold required public hearings, and then implement a mandatory program, which would also affect costs of construction in Hercules.

BACKGROUND:

The primary component in natural gas is methane. Methane is a short -lived pollutant whose contribution to climate change (“global warming potential”) is, pound for pound, 25 times greater than carbon dioxide over a 100-year period. In addition to being a source of greenhouse gas emissions, natural gas has other attributes negatively affecting public health and safety. Indoor natural gas use, particularly for cooking, worsens indoor air quality, which disproportionately harms children, who are 42% more likely to develop asthma as a result of exposure. Ruptures in natural gas lines caused by earthquakes pose a secondary hazard of fires (half of the fires in San Francisco after the 1989 Loma Prieta earthquake were due to ruptured gas lines). Reducing a community’s reliance on the natural

2 gas system improves its physical resilience, reduces fire risk , simplifies building systems and maintenance, and reduces greenhouse gas emissions.

In September 2018, Governor Jerry Brown signed two bills aimed at reducing greenhouse gas emissions from buildings, SB 1477 and AB 3232. SB 1477 calls on the California Public Utilities Commission (CPUC) in consultation with the California Energy Commission (CEC) to develop two new programs: the Building Initiative for Low Emissions Development (BUILD) program and the Technology and Equipment for Clean Heating (TECH) program to promote the use of high efficiency building appliances. AB 3232 required the CEC to develop a feasibility assessment (Building Decarbonization Assessment) for reducing greenhouse gas emission of buildings to 40 percent below 1990 levels by 2030. According to the
California Building Decarbonization Assessment – Final
Commission Report presented to the CEC on August 11, 2021,1 residential and commercial buildings jointly account for 25 percent of greenhouse gas (GHG) emissions and 70 percent of electricity use in the state. The assessment concludes that reducing building emissions is an essential component of meeting California’s GHG reduction targets.

State Building Code

Every three years, the State of California adopts new building standards that are codified in Title 24 of the California Code of Regulations, referred to as the California Building Standards Code (“Building Code”). This regular update is referred to as a “code cycle.” The current code cycle is for the year 2019 and was adopted by Hercules, via Ordinance No. 526 with amendments adopted by Contra Costa County and the Rodeo–Hercules Fire Protection District. The next code cycle will be for the year 2022 and will become effective statewide on January 1, 2023.

On August 11, 2022, the CEC approved the 2022 Energy Code which includes elements to incentivize all-electric construction for newly constructed and renovated buildings to increase efficiency and lower emissions. The 2022 Energy Code focuses on four key areas in newly constructed buildings:

• Encouraging electric heat pump technology for space and water heating, which consumes less energy and produces fewer emissions than gas-powered units. • Establishing electric-ready requirements for single-family homes to position owners to use cleaner electric heating, cooking, and electric vehicle (EV) charging options whenever they choose to adopt those technologies.
• Expanding solar photovoltaic (PV) system and battery storage standards to make clean energy available onsite and complement the state’s progress toward a 100% clean electricity grid. • Strengthening ventilation standards to improve indoor air quality.

The proposed 2022 Energy Code stops short of requiring new buildings to be exclusively electric (gas ban); nevertheless, the code does require homes to be electric-ready, with dedicated 240-volt outlets and space (with plumbing for water heaters) so electric appliances can eventually replace installed gas appliances (see Attachment 2 for 2022 Building Energy Efficiency Standards Summary passed by the CEC). The proposed code update for 2022 does not dictate the type of energy to be used in buildings (as between such options as natural gas, propane, or electricity). Rather, the code applies prescriptive or performance-based standards to each individual building design submitted for review.

1 https://efiling.energy.ca.gov/GetDocument.aspx?tn=239311 3 The 2022 update next moves to the California Building Standards Commission (CBSC) for approval and is scheduled for consideration in December 2021. If approved, the building standards will go into effect January 1, 2023, to provide time for all interested parties to prepare for the changes.

DISCUSSION:

The State of California allows cities to amend the California Building Standards Code to make them more restrictive by adopting “Reach Codes.” When a local government adopts a reach code, that agency must make an official finding that the new requirements save energy and are cost-effective.

To be cost effective, the money saved from the reduced energy costs needs to be enough to cover the initial cost within a reasonable period of time. Therefore, exploring cost-effectiveness is a key step for local governments in California interested in establishing a reach code. There is no official method for determining cost effectiveness, but local governments must make a cost -effectiveness determination, based on the m ethod they deem appropriate, and provide such evidence to the California Energy Commission.

In practice, cost-effectiveness is often measured by a benefit-to-cost ratio, whereby the benefit is the total energy bill savings expected from the energy conservation measure(s) , and the cost is the incremental cost of installing the measure(s). A ratio of at least 1.0 is considered cost -effective, indicating the benefit exceeds the cost.

Another commonly used measure of cost-effectiveness is “simple payback,” which is calculated by dividing the up-front installation cost by the annual utility savings. The resulting value indicates the number of years it takes to pay back the initial cost. Generally, an energy -efficiency measure is considered cost-effective when it pays back in less than 15 years. The exact cutoff value is a matter of opinion and depends on the context, but usually falls between 10 and 20.

Each cost-effectiveness study sets out to evaluate a specific set of energy conservation measures (e.g., home energy efficiency measures) for one or more specific building types (e.g., new single-family homes). The studies start with a digital building model that reasonably represents a typical building of that type in California. Next, installation costs are typically estimated for each measure by surveying building contractors. Then software is used to simulate the energy needs of the building with and without the measures. From these simulations, savings estimates are derived. Besides measuring benefit-to-cost ratio, cost-effectiveness studies also present additional results related to how much energy, money, and emissions are saved. As weather patterns and utility rates differ across the state, the cost-effectiveness energy-efficiency measures may differ from one location to another.

Cost-effectiveness studies model cost-effectiveness using climate zones to approximate the local weather pattens.

Cost-effectiveness studies can be funded directly by a city, but most studies are developed with the California Energy Codes & Standards Reach Codes Subprogram which is funded by ratepayer funds.

Using an automated online tool
2 provided through this statewide utility program, City staff have generated a preliminary sample estimate of c ost effectiveness in Hercules for possible energy efficiency measures (see Attachment 3).

Some cities and counties in California have already adopted reach codes to go above and beyond the statewide building code to require building electrification using an array of building code approaches.

2 Cost Effectiveness Explorer: https://explorer.localenergycodes.com/ 4 According to the Sierra Club, as of September 2021, 49 cities and counties (about 10% of jurisdictions statewide) have adopted reach codes to reduce their reliance on gas. In addition, the California Green Building Standards (“CAL Green” Part 11 of Title 24) includes voluntary reach standards and offers model building code language for local governments that wish to adopt reach codes that exceed the minimum statewide requirements. Table 1 below offers a sample of recently adopted reach codes and the range of approaches.

Table 1 – Adopted Electrification Ordinances
City Residential Commercial Remodels Exemptions Date
Adopted
Fairfax Yes Yes No Commercial kitchens 8/4/2021
Emeryville Yes No Remodels of
50% or more
Nonresidential
buildings but must be
pre-wired for future
electric appliances
7/20/2021
Petaluma Yes Yes Substantial
remodels or
addition of 50%
or more
Essential Services
Buildings and backup
power facilities for
Essential Services
Buildings.
5/3/2021
Daly City Yes Yes No 100% affordable
housing, ADUs,
commercial kitchens,
and laboratories
4/27/2021
Piedmont Yes Yes Based on project
evaluation and
Home Energy
Score
A Home Energy Score
Report demonstrating
a Home Energy Score
of 7
2/1/2021
Millbrae Yes Yes No Laboratories, and most
residential buildings
may have non-electric
cooking and fireplaces
10/27/2020
East Palo Alto Yes Yes No Affordable housing,
and commercial
kitchens
10/6/2020

In addition to the adopted reach codes referenced above, Contra Costa County’s Sustainability Commission voted on August 23, 2021, to present a letter and report to the Board of Supervisors in support of adopting building electrification reach codes for new construction.

Removing natural gas as an energy option would reduce the carbon footprint of buildings in Hercules by removing or reducing a source of greenhouse gas emissions from buildings. If Hercules adopts an all-electric ordinance, the building code amendment could remove natural gas as a possible energy source for new construction and remodels as directed by the City Council. Should the City Council direct staff to proceed with the development of an all- electric ordinance requiring new buildings and/or substantial remodels to be all-electric, an initial discussion of parameters would be helpful to enable staff to develop a proposed ordinance.

5 General Steps to Develop All-Electric Ordinance
Figure 1 below provides a generalized timeline for implementing the following steps necessary to adopt and implement a reach code ordinance (actual time to implement may vary depending on the scope and nature of the ordinance and the resources available):

1. Develop idea for a reach code ordinance:
o Ideas for reach codes can come from several places, including direction from City Council, General Plan policies, and neighboring jurisdictions.

2. Work with stakeholders:
o Both internal and external stakeholders such as elected officials, building officials and staff, local developers and contractors, environment advocacy groups , and others involved in implementing and enforcing the reach code.

3. Obtain a cost-effectiveness study

4. Develop and draft an ordinance
o All-electric reach codes typically include the purpose of the reach code, what types of buildings and actions trigger the reach code, whether there are any exceptions to or exemptions from reach code requirements, relevant definitions and interpretations and any additional administrative requirements. (See Attachment 2 for a model ordinance)

5. Public process and revisions
o The proposed draft ordinance would initially be considered by the Planning Commission followed by review and consideration by the City Council.

6. Formal adoption process
o Since a reach code is a local ordinance, it is adopted by the City Council.

7. Application for approval by California Energy Commission o Once the local reach code is adopted, but before it can be enforced, the ordinance must be submitted to the CEC. The CEC will verify that the reach code is at least as stringent as the California Energy Code and then post the reach code and accept comments on it for 60 days.

Figure 1 - BAYREN Generalized Timeline

6 ATTACHMENTS:

1. 2021 Building Energy Efficiency Standards Summary

2. All-Electric Model Code Ordinance
(version of the Menlo Park all-electric code, edited by Peninsula Clean Energy and Silicon Valley Clean Energy for use as a model)

3. Sample estimate of cost effectiveness results for Hercules 1 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of January 11, 2021

TO: Members of the City Council

VIA: Dante G. Hall, City Manager

SUBMITTED BY: Robert Reber, Community Development Director Larissa Alchin, Contract Assistant Planner

SUBJECT: Continued discussion from City Council meeting held September 28, 2021, on decarbonizing buildings through possible adoption of an all-electric building code amendment

RECOMMENDED ACTION:

Discuss and provide direction if and what type of all-electric ordinance should or should not be pursued.

COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:

FISCAL IMPACT OF RECOMMENDATION:

BACKGROUND:

At the regular City Council meeting held on September 28, 2021, following a presentation by staff, City Council members present agreed to continue the discussion to a date uncertain to enable the full City Council an opportunity to provide feedback to staff. The September 28 staff report to City Council provided an in -depth look at all -electric ordinances (see Attachment 1) . During the September 28 meeting, Council members asked staff to provide additional information regarding the range of ordinance types, example ordinance, feasibility, and power grid capacity.

2 DISCUSSION:

Types of Reach Codes

Local jurisdictions have adopted two types of reach codes:
 Prescriptive codes, which require one or more specific energy efficiency measures; and  Performance codes, which require buildings perform more efficiently based on accepted computer modelling and allow trade-offs between energy efficiency measures.

Additionally, some related codes do not specifically require increased energy efficiency, but they may cause less energy to be used or they may increase the likelihood of electrification and therefore reduced greenhouse gas emissions. Examples of this type of code are requiring EV charging stations or requiring a home energy audit.

Table 1 - Prescriptive & Performance Reach Codes
Reach Code Type Examples
Prescriptive Banning new natural gas infrastructure;
Requiring all-electric power source for new construction in most common occupancy types;
Requiring all-electric power source for new construction and substantial remodels.

See Attachment 2: All-Electric Model Reach Code
Performance Fuel-Neutral Reach Code requir ing stricter energy efficiency, renewable energy, and energy storage requirements for newly constructed buildings regardless of energy power source (electricity and natural gas OR electricity only). All new mixed-fuel buildings must comply with stricter performance standards or prescriptive requirements such as being all-electric.

See Attachment 3: Electric-Preferred Model Reach Code

Local jurisdictions have adopted a variety of reach codes for the current (2019) three-year code cycle which took effect January 1, 2020. These adopted reach codes include performance-based “Fuel- Neutral” ordinances (such as those adopted by the cities of San Rafael and Albany), which require new buildings comply with greater energy performance levels regardless of building power source.

The “Electric Preferred” ordinance adopted by Marin County requires only mixed-fuel buildings comply with greater energy performance levels to offset the effects of continued natural gas use. Some prescriptive “All-Electric” reach codes, such as that adopted by the City of Campbell, ban natural gas for specific appliance uses such as water and space heating while still allowing gas for fireplaces and cooking. The cities of Petaluma and Berkeley have adopted “Gas Ban” or “All-Electric” ordinances whereby no new gas lines or hookups are allowed in certain new construction.

As of September 2021, 49 local justifications in California had adopted reach codes to reduce their reliance on natural gas and improve energy efficiency (see Attachment 4). On February 18, 2020, Richmond was the first city in Contra Costa County to adopt a reach code banning natural gas for 3 space/water heating and cloth dryers in new single-family and low-rise multifamily units. Richmond is currently working on an update to its reach codes to make it more stringent in anticipation of the upcoming Title 24 update. On December 14, 2021, the Contra Costa County Board of Supervisors voted to waive the first reading and set a date of January 18, 2022, for a public hearing to consider adoption of an ordinance amending the County’s building code to require all newly constructed residential buildings, hotels, offices, and retail buildings to be constructed as all-electric buildings without natural gas infrastructure (see Attachment 5).

Figure 1- Adopted Reach Codes

Feasibility of All-Electric Ordinance
The feasibility of switching to all-electric energy sources compared to the current hybrid model of gas and electric power depend on the installation of solar photovoltaic (PV) systems, battery storage, and improving efficiencies. Starting with the 2019 Title 24 update, all new single-family and low-rise multi-family buildings are required to install PV systems that cover the projected annual electrical usage. With the 2022 Title 24 update, current solar requirements will be coupled with PV battery storage to increase the availability of energy when needed at night and on cloudy/smoky days .

Additionally, s tarting in 202 3, new high-rise multifamily units, hotels -motels, schools, and commercial buildings will also be required to install PV and battery systems. The solar systems must also be sized to provide for the full annual energy usage of the building, based on the floor area of the building and climate zone where the building is located. Nevertheless, there are exceptions to the PV mandate, like a property being too shaded or having too small a roof to install solar panels.

Local weather patterns impact how much energy a building consumes and accordingly the amount of energy certain measures may save. Provisions in the California Energy Code account for climate variation by dividing the state into sixteen climate zones. Hercules contains two climate zones: 91.8%

4 of the existing building stock is located in Climate Zone 3, and 8.2% is located in Climate Zone 12.1 Cost effectiveness studies model energy performance using weather patterns from each climate zone to better approximate energy savings and therefore cost -effectiveness in each climate zone . The California Energy Codes & Standards Study ( Attachment 6) contains the full methodology, assumptions and building prototypes used in the low-rise residential cost-effectiveness studies. Cost effectiveness studies analyze two different metrics (utility bill impacts and time-dependent valuation) to assess cost-effectiveness in newly constructed residential buildings. Both methodologies require estimating and quantifying the incremental costs and energy savings associated with energy efficiency measures. The main difference between the methodologies is the way they value energy and thus the cost savings of reduced or avoided energy use.

 Utility Bill Impacts (On-Bill): Customer-based Lifecycle Cost (LCC) approach that values energy based upon estimated site energy usage and customer on-bill savings using electricity and natural gas utility rate schedules over a 30-year duration, accounting for discount rate and energy cost inflation.

 Time-Dependent Valuation (TDV): This methodology is intended to capture the “societal value or cost” of energy use including long-term projected costs such as the cost of providing energy during peak periods of demand and other societal costs such as projected costs for carbon emissions, as well as grid transmission and distribution impacts. This metric values energy use differently depending on the fuel source (gas, electricity, and propane), time of day, and season. Electricity used (or saved) during peak periods has a much higher value than electricity used (or saved) during off -peak periods. The Energy Commission uses this methodology in evaluating cost-effectiveness for efficiency measures in Title 24, Part 6.

The cost-effectiveness study measures the benefit-to-cost ratio of multiple energy saving measures over a 30-year time frame, taking into account future savings, costs, and financing of incremental first costs. Energy efficiencies studied include but are not limited to cool roofs, slab insulation, wall & attic insulation, and HVAC duct measures. Results are presented as On-Bill benefit-to-cost (B/C) ratio or Time Dependent Valuation (TDV) B/C ratio. A value equal to one is equivalent to the incremental cost and a value greater than one represents a positive return on investment. The tables below show the results from the Cost-Effectiveness report for new low-rise single-family homes and multi-family units in Hercules. The City of Hercules Climate Zone 3 cost-effectiveness study also provide s calculations for new and existing office, retail, and hotel buildings (see Attachment 7).

1 Climate Zone 3 is typified by hot dry summers and warm winters (distinct wet and dry seasons; low rainfall and low humidity; no extreme cold but can be cool in winter; hot to very hot summers common; significant diurnal temperature range). Climate Zone 12 experiences cooler winters and hotter summers than Climate Zone 3, with some lower areas receiving frost on winter nights. 5 Table 2 – Benefit-to-Cost Ratios of Energy Options for New Single-Family Homes in Hercules

Table 3 – Benefit-to-Cost Ratios of Energy Options for New Low-Rise Multifamily Units in Hercules
Package B/C TDV B/C
High-Efficiency Appliances 1.73 1.58
EE + PV 2.43 1.73
EE + PV + Battery 1.32 1.64
Electrification 0.58 1.46
Electrification + EE + PV 4.18 ∞
Electrification + PV (neutral cost) ∞ ∞

The following Energy Efficiencies (EE) were included as part of the climate zone 3 new single-family home packages: verified low-leakage ducts in condition spaces, R-10 perimeter slab insulation, basic compact hot water distribution design credit, 0.35 cfm (cubic feet p er minute) HVAC system, minimum code compliant PV, and 5-kWh battery storage. No Energy Efficiency packages alone were found to be cost-effective and therefore not included for multifamily units. The only package which did not show a positive On-Bill ratio was the Electrification package which compares a 2019 code compliant all-electric home with a 2019 code compliant mixed -fuel home, and does not include improved efficiencies, HE appliances, increased PV scaling, or battery storage.

The cost-effectiveness study for climate zones 3 and 12 show reach codes requiring all-electric fuel in new construction would result in a positive return on investment in nearly all new residential and nonresidential construction in Hercules. Furthermore, requiring new construction to be electric-ready as the new 2022 Title 24 update proposes would likely make mixed-fuel buildings more costly to build as they require the added cost of gas lines.

Power Grid Capacity
According to a 2019 study by Energy and Environmental Economics, Inc.,4 the California grid is a summer peaking system, with peak electricity demand driven by residential and commercial air conditioning. This means that the summer peak load is used to plan systemwide capacity additions and investments. Residential and commercial building electrification will lead to an increase in winter

2 Ratios listed “∞” indicate cases where there are both first cost savings and annual utility bill savings; upgrade and benefits are realized immediately.
3 The cost savings for the all-electric code compliant home ("Electrification" package) is invested in a larger PV system, sized to result in a lifetime incremental cost of zero based on the On-Bill approach, relative to a mixed-fuel home. 4 Residential Building Electrification in California:
https://www.ethree.com/wp-content/uploads/2019/04/E3_Residential_Building_Electrification_in_California_April_2019.pdf Package B/C TDV B/C
Energy Efficiency (EE) 2.60 2.36
High-Efficiency Appliances 1.76 1.62
EE + PV 2.22 1.68
EE + PV + Battery 1.50 1.58
Electrification 0.55 1.53
Electrification + EE + PV 2.88 ∞2
Electrification + PV (neutral cost)3 ∞ ∞
6 electricity demand across all climate zones. However, as the study suggests, even in a relatively high residential building electrification future, buildings’ contribution to statewide winter electricity demand is likely to remain lower than the residential summer peak demand levels. Currently, most natural gas consumption is attributed to water and space heating in the home, which generally increase in the winter months during off-peak electricity demand.

Without additional energy efficiency measures, widespread use of electric space and water heating could increase California’s overall electricity use by approximately 19 percent . However, when coupled with energy efficiencies, PV systems, and batteries (as required by the energy code), those grid impacts would be reduced. In California, space heating accounts for 40 percent of natural gas use in residential and commercial buildings combined. Electric heat pumps are an energy-efficient heating and cooling system that can heat buildings by moving heat from outdoors to indoors (during winter) and cool buildings by moving heat from indoors to outdoors (during summer). Similarly, induction cooktops, heat pump electric clothes dryers, and electric water heat pumps and solar hot water heaters are high efficiency and reduce the impact of increased electric grid use.

Furthermore, a 2018 Synapse Energy Economics 5 study that modeled the impacts of building electrification scenarios on the grid in the winter and summer, confirmed that California’s electricity infrastructure is well equipped for electrification and that the new winter demand from space and water heating needs would remain below the summer peak demand. Northern California PG&E customers (including Hercules) consume the majority of natural gas in the state. Under a n “unmanaged” scenario in which 50 percent of the natural gas used in new and existing building is converted to electric for space and water heating, PG&E’s winter peak loads would begin to surpass summer peak loads as shown in Figure 4. Converting 50 percent of buildings to electric space and water heating will be a slow process with natural gas currently accounting for 86 percent of space heating and 90 percent of water heating in residential buildings. Similarly, natural gas is used to heat water in 95 perc ent of commercial buildings and for 80 percent of space heating in Northern California. Nonetheless, according to the Synapse study, if PG&E becomes a winter-peaking utility in the future , it is unlikely to require additional generation supply but could req uire additional transmission and distribution upgrades to serve load in its territory.

5 Decarbonization of Heating Energy Use in California Buildings:
https://www.synapse-energy.com/sites/default/files/Decarbonization-Heating-CA-Buildings-17-092-1.pdf 7 Figure 2 – PG&E electrification impacts in a 50% building electrification scenario

During the summer months, electrification will result in relatively minor additional load from water heating, but very little additional load from space heating. The graphs below depict the expected hourly load shapes from water and space heating on a peak summer day and a peak winter day.

Figure 3 - Residential peak summer and winter space and water heating

The graphs indicate that water heating load is highest during the morning and late evening hours.

Electric water heating in the summer would likely draw energy form the grid. However, a portion of

8 the load could be shifted to off peak hours through time-of-use rates and through water heaters’ ability to heat water during off-peak hours and store it for use during peak hours.

With increased Title 24 energy efficiency standards for 2022, including heat pump technology use for space and water heating, PV systems and batteries sized to provide the total electricity usage of a home, all electric newly constructed buildings would likely have minimal impact on the summer and winter grid demand.

Direction to Staff
As described above, reach codes can be either prescriptive codes, which require one or more specific energy efficiency measures, or performance codes, which require buildings perform more efficiently through a variety of optional measures regardless of fuel source. Performance reach codes require energy modeling to craft policies which exceed minimum building energy performance by a certain percentage and are generally more complicated to develop and enforce . The prescriptive and performance approaches can also be combined as a hybrid reach code.

Staff is requesting the Council provide direction on the following:

1. Does the Council wish to adopt a building decarbonization ordinance (Electrification Ordinance)?

2. If so, does the Council wish to adopt by reference the County’s pending ordinance, or adopt an ordinance of its own?

3. If the latter, does Council prefer a prescriptive or a performance-based ordinance?

4. What projects would be subject to the ordinance?
o New single-family residential
o New multi-family residential
o New accessory dwelling units
o New commercial buildings
o Substantial remodel of existing buildings

5. Will any exceptions be allowed?
o Affordable housing projects
o Cooking appliances (commercial and/or residential)
o Outdoor fireplaces/pits and grills
o Medical
o Laboratories
o Emergency facilities

6. When will the ordinance take effect?
o Immediately upon approval, which effects the current 2019 building code o With the 2022 update which takes effect January 1, 2023

9 ATTACHMENTS:

1. Staff Report to the City Council – September 28, 2021

2. All-Electric Model Reach Code

3. Electric-Preferred Model Reach Code

4. 2019 Code-cycle adopted reach codes

5. Contra Costa County Ordinance No. 2022-02 All-Electric Buildings

6. California Energy Codes & Standards Study

7. Summary Cost-Effectiveness results for Hercules Climate Zone 3

1 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of February 8, 2022

TO: Members of the City Council

VIA: Dante G. Hall, City Manager

SUBMITTED BY: Robert Reber, Community Development Director Larissa Alchin, Contract Assistant Planner

SUBJECT: Continued discussion from City Council meeting held January 11, 2022, on decarbonizing buildings through possible adoption of an all -electric building code amendment

RECOMMENDED ACTION:

Discuss and provide direction if and what type of all -electric ordinance should or should not be pursued.

COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:

No Commission or Subcommittee actions or recommendations are yet applicable for this action. If an ordinance were to be considered, it would require Planning Commission review. If Council directs staff to initiate adoption of an all -electric ordinance, staff recommends that the process be completed early enough that it can be approved by the California Energy C ommission (CEC) no later than September 2022, prior to the start of the next building code cycle that will take effect January 1, 2023.

FISCAL IMPACT OF RECOMMENDATION:

If Council desires an ordinance be drafted, additional but unknown staff and attorney time will be needed to draft the ordinance, notice and hold required public hearings, and then implement a mandatory program, which would also affect costs of construction in Hercules.

BACKGROUND:

2 Council provided an in-depth look at all-electric ordinances (see Attachment 1). At the regular City Council meeting held January 11, 2022, following a presentation by s taff, Council members requested staff return w ith an update following Contra Costa Board of Supervisors vote on the County’s All-Electric reach code ordinance (see Staff Report Attachment 2)

Additionally, Council requested clarification on the cost associated with construction of an all - electric building to Hercules residents. The new Energy Code adopted by the State in August 2021 and effective on January 1, 2023, will require the following in newly constructed homes and businesses in Hercules and t hrough the State regardless of the City adopting an All -Electric Ordinance.

 Extend PV systems and introduces battery storage standards to the following building types:
o High-rise multifamily (apartments and condos)
o Hotel-motel
o Tenant space
o Office, medical office, and clinics
o Retail and grocery stores
o Restaurants
o Schools
o Civic (theaters, auditoriums, and convention centers)

 Require single-family homes to be electric-ready, including:
o Electrical circuits for space heating, water heating, cooking/ovens, and clothes dryers.
o Electrical panel, branch circuits, and transfer switch for battery storage. o Dedicated circuits and panels to easily convert from natural gas to electric in the future

Require most new homes and buildings statewide to be equipped with at least one heat pump for either space heating or water heating or face higher energy efficiency requirements. o Additionally, even if they don’t install an electric heat pump, they must provide the wiring and space to make it easy to install one in the future.

DISCUSSION:

On January 18, 2022, Conta Costa Board of Supervisors adopted Ordinance No. 2022-02 (Attachment 3) which amends the 2019 California Energy Code to require all newly constructed residential buildings, detached accessory dwelling units, hotels, offices, and retail buildings to be constructed as all-electric buildings without natural gas infrastructure. As previously stated, the ordinance applies only to new construction, however, it also covers any reconstruction of structures that are lost due to fire or natural disaster.

Direction to Staff

Staff is requesting the Council provide direction on the following:
3 1. Does the Council wish to adopt by reference the County’s adopted ordinance, or adopt an ordinance of its own?

2. If adopting the County’s code by reference would Council like to add exceptions? o Affordable housing projects
o Accessory Dwelling Units when the existing primary dwelling also has natural gas infrastructure.
o Medical
o Laboratories
o Emergency facilities

3. If the Council prefers to adopt its own ordinance would a prescriptive or a performance - based ordinance be preferred?

4. What projects would be subject to the ordinance?
o New single-family residential
o New multi-family residential
o New accessory dwelling units
o New commercial building
o Substantial remodel of existing buildings

5. When will the ordinance take effect?
o Immediately upon approval, which affects the
current 2019 building code
o With the 2022 update which takes effect January 1,
2023

ATTACHMENTS:

1. Staff Report to City Council – September 28, 2021

2. Staff Report to City Council – January 11, 2022

3. Contra Costa County Ordinance No. 2022-02 (adopted January 18, 2022)

111 Civic Drive
Hercules, CA 94547City of Hercules
Meeting Minutes
City Council
Mayor Dion Bailey
Vice Mayor Alexander Walker-Griffin
Council Member Dan Romero
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Lauren Berges, City Clerk
7:00 PMTuesday, May 10, 2022
Zoom ID: 822 4828 1346
Zoom Passcode: 247702
Zoom Phone Number: 1-669-900-6833
To view webcast of meetings, live or on demand, go to the City's website at www.ci.hercules.ca.us
I. SPECIAL MEETING - CLOSED SESSION - NONE
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS - NONE III. CONVENE INTO CLOSED SESSION - NONE
IV. REGULAR MEETING – 7:00 P.M. CALL TO ORDER - ROLL CALL Mayor Bailey called the meeting to order at 7:02 p.m.

Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley

Present: 5 -
V. REPORT ON ACTION TAKEN IN CLOSED SESSION - NONE
VI. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Councilmember Kelley.

VII. MOMENT OF SILENCE
There was no moment of silence.

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May 10, 2022City Council Meeting Minutes
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 22-163 Proclamation Recognizing May 2022 as Asian American and Pacific Islander Heritage Month
Mayor Bailey read the Proclamation into the record.

2. 22-160 National Library Week 2022 Presentation
Presentation by Alison Peters, Hercules Library Manager.

Councilmembers provided comment.

IX. AGENDA ADDITIONS/DELETIONS
City Manager Hall had no further additions or deletions.

X. PUBLIC COMMUNICATIONS
Public speakers: Phil Simmons, Giorgio Cosentino, Dr. Moto, Sue Pricco, William Henderson
Written public comments were received by: Claudio Pinto, Debbie Schatmeier, Marie Bowman
XI. PUBLIC HEARINGS

1. 22-156 Military Equipment Funding, Acquisition, and Use Policy Recommendation: Introduction of an ordinance adopting Hercules Police Department Policy No. 709: Military Equipment, Acquisition, Funding, and Use.

Presentation by Chief William Imboden. Councilmembers provided comment.

Public Speakers: Carol Most, William Henderson
MOTION: A motion was made by Council Member Romero, seconded by Vice Mayor Walker-Griffin, to introduce Ordinance No. 537 for adoption. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -

2. 22-154 AB 1276 Single-Use Plastics Reduction Enforcement Requirements Recommendation: Waive the First Reading and Approve for Introduction an Ordinance Implementing AB 1276 Single-use Plastics Reduction Enforcement.

Presentation by City Attorney Patrick Tang. Councilmembers provided comment. No public comment.

MOTION: A motion was made by Council Member Grimsley, seconded by Vice Mayor Walker-Griffin, to introduce Ordinance No. 538 for adoption. The motion carried by the following vote:

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May 10, 2022City Council Meeting Minutes

Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -

3. 22-155 Public Hearing Regarding Possible Charter City Measure for the November 8, 2022 General Election
Recommendation: Receive and discuss staff report, open the public hearing, take public comment, and provide staff with further direction regarding a potential November 8, 2022 ballot measure to become a charter city.

Presentation by City Attorney Ben Fay of Jarvis Fay. City Manager Hall provided comment. Councilmembers and staff discuss the public hearing process, Charter City logistics, and a potential Charter City ballot measure for November 8, 2022.

Public Speakers: Eric Meyers, Phil Simmons, Wally Moore, William Henderson, Sue Picco, Susan Keeffe, Sherry McCoy, Cordell Hindler, Tanya Little
Councilmember Grimsley made a motion to close the public hearing, second by Councilmember Kelley, Ayes: Councilmembers Grimsley, Kelley, Romero, Vice Mayor Walker-Griffin, Mayor Bailey.

Not further action was taken. The next public hearing is scheduled for June 14, 2022.

XII. CONSENT CALENDAR
MOTION: A motion was made by Council Member Kelley, seconded by Vice Mayor Walker-Griffin, to adopt this . The motion carried by the following vote:

Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -

1. 22-162 Minutes
Recommendation: Approve the Regular Meeting Minutes of April 26, 2022.

Approved.

2. 22-157 Automated Closed Captioning and Language Translation for Public Meetings
Recommendation: Adopt a resolution approving the proposed quote from Link Electronics for automated closed captioning and translation equipment for an amount not to exceed $49,617.09 and to appropriate the necessary funding.

Approved.

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May 10, 2022City Council Meeting Minutes
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-161 Introduction of the proposed FY 22-23 General Fund and Other Restricted funds budget
Recommendation: Receive an introduction on the proposed FY 22-23 General Fund and Other Restricted funds budget

Presentation by Director of Finance Edwin Gato. Councilmembers provided comment. The following direction was given to staff to address policy questions: 1. The City Council requests to set aside ARPA funding for eligible non-profit grants - Social programs expense increase to $50,000; Business assistance grants and business rental assistance grants expense increase to $300,000 (with a notice of when $100,000 worth of disbursements have been made). 2. The Council agrees the reserve policy should be increased to 25%. 3. The Council agrees that a funding model be put in place to fund long-term capital improvement projects from existing resources and operating transfers into capital improvement reserves. The additional policy questions will be coming back to council for further discussion.

City Attorney Tang raises a procedural issue in the interest of time, 10:51 p.m., under adopted City Council rule 3.7
Public speakers: William Henderson, Tanya Little
Motion to table the item to move on to Landscape and Lighting Assessment Districts by Councilmember Romero, Second by Councilmember Kelley. Ayes: Councilmembers Grimsley, Kelley, Romero, Vice Mayor Walker-Griffin, Mayor Bailey.

2. 22-159 Landscaping and Lighting Assessment Districts - Approval of Preliminary Engineer’s Reports and Declaring the City Council’s Intention to Levy and Collect Assessments for Fiscal Year 2022/23 Recommendation: Adopt the following resolutions:
a. A resolution for the preliminary approval of the Engineer ’s Report and declaring the City Council ’s intention to levy and collect assessments for Fiscal Year (FY) 2022/23 within the City of Hercules for Citywide Landscaping and Lighting Assessment District No. 83-2, which is comprised of Benefit Zone Nos. 1, 2, 3&4, 5A, 5B, 5C, 6, 7, 8, 9, and 10, and setting a public hearing for June 28, 2022;
b. A resolution for the preliminary approval of the Preliminary Engineer’s Report and declaring the City Council ’s intention to levy

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May 10, 2022City Council Meeting Minutes
and collect assessments for Fiscal Year (FY) 2022/23 within the City of Hercules Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 and setting a public hearing for June 28, 2022;
c. A resolution for the preliminary approval of the Preliminary Engineer’s Report and declaring the City Council ’s intention to levy and collect assessments for Fiscal Year (FY) 2022/23 within the City of Hercules for Hercules Village Landscaping and Lighting Assessment District No. 2002-2 and setting a public hearing for June 28, 2022;
d. A resolution for the preliminary approval of the Preliminary Engineer’s Report and declaring the City Council ’s intention to levy and collect assessments for Fiscal Year (FY) 2022/23 within the City of Hercules for Baywood Landscaping and Lighting Assessment District No. 2004-1 and setting a public hearing for June 28, 2022; and
e. A resolution for the preliminary approval of the Preliminary Engineer’s Report and declaring the City Council ’s intention to levy and collect assessments for Fiscal Year (FY) 2022/23 within the City of Hercules for Bayside Landscaping and Lighting Assessment District No. 2005-1 and setting a public hearing for June 28, 2022.

Motion to table this item to continue the FY22-23 General Fund and Other Restricted Funds discussion by Councilmember Romero, Second by Councilmember Grimsley. Ayes: Councilmembers Grimsley, Kelley, Romber, Vice Mayor Walker-Griffin, Mayor Bailey.

Presentation by Director of Public Works/City Engineer Mike Roberts and Ed Espinoza of Francisco and Associates. Councilmembers provided comment. No public comment. Councilmembers set the CPI increase at 3% for all LLADs/Zones.

MOTION: A motion was made by Council Member Kelley, seconded by Council Member Grimsley, to adopt Resolution 2022-034. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -
MOTION: A motion was made by Council Member Grimsley, seconded by Vice Mayor Walker-Griffin, to adopt Resolution 2022-035. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -

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May 10, 2022City Council Meeting Minutes
MOTION: A motion was made by Council Member Romero, seconded by Council Member Kelley, to adopt Resolution 2022-036. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -
MOTION: A motion was made by Council Member Romero, seconded by Council Member Grimsley, to adopt Resolution 2022-037. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -
MOTION: A motion was made by Council Member Kelley, seconded by Vice Mayor Walker-Griffin, to adopt Resolution 2022-034. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -

3. 22-158 Discussion Regarding Juneteenth Commemoration and Administrative Requirements for Display of a Ceremonial Pan-African or Juneteenth Flag
Recommendation: Receive report, discuss, and provide direction to staff.

City Attorney Tang announces this discussion item will be postponed to the May 24, 2022 meeting pursuant to the Council's adopted rules that no new items will be discussed after 11 p.m.

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May 10, 2022City Council Meeting Minutes
XIV. PUBLIC COMMUNICATIONS
No public comment.

XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

AND FUTURE AGENDA ITEMS
No announcements were made.

Councilmember Romero requests a future agenda item to receive a Filipino Independence Day proclamation.

Councilmember Grimsley requests a future agenda item to receive a presentation from the West Contra Costa County Board Trustee, Jamela Smith-Folds
XVI. ADJOURNMENT
Mayor Bailey adjourns the meeting at 11:26 p.m.
_________________________________
Dion Bailey, Mayor
Attest:
_______________________________
Lauren Berges, CMC
City Clerk

Page 7 ends

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of May 24, 2022

TO: Members of the City Council

SUBMITTED BY: Dante Hall, City Manager

SUBJECT: Emergency Declaration Extension

RECOMMENDED ACTION: Adopt a resolution authorizing virtual (and hybrid) City Council, commission, and committee meetings during a declared state of emergency pursuant to government code 54953 (AB 361)

FISCAL IMPACT OF RECOMMENDATION: There are no direct financial impacts from the enactment of the proposed resolution.

EXECUTIVE SUMMARY:

When the COVID-19 pandemic started, local agencies struggled to conduct their public meetings in compliance with the Brown Act’s public accessibility requirements while still abiding by stay- at-home orders. As a result, Governor Newsom signed Orders N-25-20, N-29-20, and N-35-20 to grant local agencies the flexibility to meet remotely during the COVID-19 pandemic. These orders expired on September 30, 2021.

On September 16, 2021, Governor Newsom signed into law AB 361 – Brown Act: Remote Meetings During Emergencies. AB 361 went into effect immediately upon signature by the governor. It amends the Brown Act to allow local legislative bodies to continue having purely virtual meetings using teleconferencing and virtual meeting technology as long as there is a gubernatorial "proclaimed state of emergency," and either (1) state or local officials imposing or recommending measures that promote social distancing or (2) the legislative body finding that meeting in person would present an imminent safety risk to attendees.

There are key differences between the Executive Orders, which expired September 30, 2021, and AB 361. AB 361 imposes requirements with respect to public comment, however, the City of Hercules currently satisfies legal requirements with respect to live public comment via Zoom in alignment with AB 361. Additionally, public agencies must either make findings by majority vote that the state of emergency still exists and continues to directly impact the ability of the members to meet safely in person, or that health officials continue to impose or recommend measures to promote social distancing. These conditions continue to exist. Determinations by

the local agency that the emergency impacts the ability to meet safely in person must be re- visited every 30 days.

Governor Newsom’s March 4, 2020 Proclamation of Emergency related to the COVID-19 pandemic is still in effect. In addition, the Contra Costa County Public Health Officer continues to recommend teleconferencing or social distancing to protect the public’s health and safety during local government meetings.

Continuing the remote meetings would provide for a consistent meeting format until the pandemic emergency is lifted.

DISCUSSION:

AB 361 amends Government Code Section 54953 to provide an alternative to having the public access the locations where City Councilmembers, Commissioner, or Committee Members, are teleconferencing from. To have teleconference public meetings, without providing access to City Councilmember’s private residences, the City Council must pass a resolution stating that they have reconsidered the circumstances of the COVID-19 state of emergency and that any of the following circumstances exist:

1. The state of emergency as a result of COVID-19 continues to directly impact the ability of the members of City Council and the members of the City’s Commissions, and Committees to meet safely in person; and

2. The State of California and the City of Hercules continue to impose or recommend measures to promote social distancing.

This Resolution makes the findings to confirm the current conditions to allow teleconference meetings pursuant to AB 361 for the City Council and on behalf of all of the commissions and committees created by the City Council pursuant to Government Code section 54952(b). The Resolution authorizes teleconference meetings including hybrid meetings held both via teleconference and in-person. This Resolution will allow members of the public to safely observe and participate in local government teleconference meetings during the continued pandemic.

AB 361 requires City Council to make these findings every 30 days to continue teleconference hearings. If adopted, staff will agendize this item once a month until the state of emergency is over, or City Council no longer believes teleconference meetings are necessary.

If the Resolution is not adopted, the City will be required to hold public meetings in-person or conduct teleconference meetings pursuant to subsection 54953(b)(3) of the California Government Code which will require posting of the agenda at each teleconference location and for the public to be admitted to each teleconference location.

ATTACHMENTS:

1. Resolution

2. Contra Costa Health Services Recommendation

1 HERCULES CITY COUNCIL
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES

AUTHORIZING VIRTUAL CITY COUNCIL, COMMISSION, AND COMMITTEE

MEETINGS DURING A DECLARED STATE OF EMERGENCY PURSUANT TO GOVERNMENT CODE 54953 (AB 361)

WHEREAS, the City Council of the City of Hercules is committed to ensuring public access to observe and participate in local government meetings; and

WHEREAS, all meetings of the City Council and its other legislative bodies created pursuant to Government Code section 54952(b) are open and public, as required by the Ralph M. Brown Act, so that any member of the public may participate in local government meetings; and

WHEREAS, on March 17, 2020, in response to the COVID-19 pandemic, the Governor signed Executive Order N-29-20 suspending certain provisions of the Brown Act in order to allow local legislative bodies to conduct meetings by teleconference or by other means; and

WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08-21 which ended the provisions of Executive Order N-29-20 on September 30, 2021; and

WHEREAS, on September 16, 2021, the Governor signed AB 361 (2021) into law allowing legislative bodies to continue to conduct meetings via teleconferencing under specified conditions, including the requirement that the legislative body make specified findings. AB 361 (2021) took effect on October 1, 2021; and

WHEREAS, AB 361 authorizes local legislative bodies to continue using teleconferencing and virtual meeting technology as long as there is a gubernatorial "proclaimed state of emergency," and either (1) State or local officials imposing or recommending measures that promote social distancing or (2) the legislative body finding that meeting in person would present an imminent safety risk to attendees; and

WHEREAS, the state of emergency proclaimed by the Governor on March 4, 2020, related to the pandemic of coronavirus commonly as COVID-19 has not been rescinded and remains in effect; and

WHEREAS, new variants of COVID-19 have developed, and risks of illness or death due to such variants remains significant to the general public; and

WHEREAS, State and local health officials have imposed and recommended social distancing measures for the protection of public health and safety in response to COVID-19; and

WHEREAS, the Contra Costa Health Services Officer continues to recommend teleconferencing or social distancing during public meetings of all legislative bodies to protect the community’s health against the spread of COVID-19; and

2 WHEREAS, teleconference meetings may include hybrid meetings, in which all or some members of the legislative body meet in person while others attend by teleconference, and members of the public are either allowed to participate only by teleconference or both in person and by teleconference (“hybrid meetings”). The purpose of hybrid meetings is to allow for multiple modes of attending meetings while reducing the risks of COVID-19, including its variants; and

WHEREAS, the City Council, acting as a legislative body pursuant to Government Code section 54952(a) and for the benefit of the commissions, committees, and other bodies that were created by the City Council pursuant to Government Code section 54952(b) (collectively referred to as “Legislative Bodies”), finds that the current conditions meet the circumstances set forth in Government Code section 54953(e)(3) to allow Legislative Bodies to continue to use teleconferencing to hold open and public meetings if the Legislative Bodies comply with the requirements set forth in Government Code section 54953(e)(2) to ensure the public can safely participate in and observe local government meetings.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that:

Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

Section 2. Current Conditions Authorize Teleconference Public Meetings of Legislative Bodies.

Based on the California Governor’s continued declaration of a State of Emergency and the Contra Costa County Health Services Officer’s recommendation to continue teleconferencing or social distancing during public meetings, the City Council finds that the conditions continue to exist pursuant to Government Code sections 54952(e)(1) and 54953(e)(3) to allow Legislative Bodies to use teleconferencing to hold public meetings in accordance with Government Code section 54953(e)(2) to ensure members of the public have continued access to safely observe and participate in local government meetings.

Section 3. Authorize Legislative Bodies to Conduct Teleconference Meetings. The Legislative Bodies are hereby authorized to take all actions necessary to carry out the intent and purpose of this Resolution including, conducting open and public meetings in accordance with Government Code section 54953(e)(2) and other applicable provisions of the Brown Act.

Section 4. Effective Date. This Resolution shall take effect immediately and shall be in effect for a period of 30 days from the date of adoption. The City Council may reconsider the circumstances necessitating this resolution within 30 days of the adoption of this resolution.

NOW, THEREFORE, BE IT FURTHER RESOLVED the foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 24th day of May, 2022 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

3 ABSENT:

____________________________
Dion Bailey, Mayor
ATTEST:

Lauren Berges, City Clerk

Recommendations for safely holding public meetings
Each local government agency is authorized to determine whether to hold public meetings in person, on-line (teleconferencing only), or via a combination of methods. The following are recommendations from the Contra Costa County Health Officer to minimize the risk of COVID 19 transmission during a public meeting.

1. Online meetings (i.e. teleconferencing meetings) are encouraged, where practical, as these meetings present the lowest risk of transmission of SARS CoV-2, the virus that causes COVID 19. This is particularly important when community prevalence rates are high. Our current trends as of April 15, 2022 in Covid-19 case rate and Covid-19 hospitalizations have plateaued at this time, but wastewater surveillance data and COVID-19 test positivity has been increasing. In addition to this, the predominant variant of Covid-19 being identified continues to be the Omicron variant, the impact of which on the spread of Covid-19 has shown to dramatically increase COVID-19 transmission.

2. If a local agency determines to hold in-person meetings, offering the public the opportunity to attend via a call-in option or an internet-based service option is recommended, when possible, to give those at higher risk of and/or higher concern about COVID-19 an alternative to participating in person.

3. A written safety protocol should be developed and followed. It is recommended that the protocol require social distancing, where feasible – i.e. six feet of separation between attendees; and consider requiring or strongly encouraging face masking of all attendees and encouraging attendees to be up-to-date on their COVID-19 vaccine.

4. Seating arrangements should allow for staff and members of the public to easily maintain at least six-foot distance from one another at all practicable times.

5. Consider holding public meetings outdoors. Increasing scientific consensus is that outdoor airflow reduces the risk of COVID-19 transmission compared to indoor spaces. Hosting events outdoors also may make it easier to space staff and members of the public at least 6 feet apart.

6. Current evidence is unclear as to the added benefit of temperature checks in addition to symptom checks. We encourage focus on symptom checks as they may screen out individuals with other Covid-19 symptoms besides fever and help reinforce the message to not go out in public if you are not feeling well.

7. Consider a voluntary attendance sheet with names and contact information to assist in contact tracing of any cases linked to a public meeting.

Revised 4-15-2022

Sefanit Mekuria, MD, MPH
Deputy Health Officer, Contra Costa County

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of May 24, 2022

TO: Mayor Bailey and Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Patrick Tang, City Attorney
Michael Roberts, Public Works Director/City Engineer

SUBJECT: AB 1276 – Single-Use Plastics Reduction Enforcement Requirements

RECOMMENDED ACTION:

Staff recommends that the City Council approve the final adoption of the attached Ordinance amending Title 5, Chapter 12 of the Hercules Municipal Code to add sections 5-12.01 to 5-12.06, implementing AB 1276 single - use plastics reduction enforcement requirements.

FISCAL IMPACT OF RECOMMENDATION:

Enforcement of the single-use plastic reduction enforcement requirements would require an as yet undetermined amount of code enforcement and administrative staff time.

EXECUTIVE SUMMARY:

The attached draft ordinance was approved for introduction at the city council meeting of May 10, 2022 by a 5-0 vote. The prior agenda materials are provided as an Attachment to this report.

DISCUSSION: On October 5, 2021, AB 1276 was signed into law by Governor Newsom. AB 1276 prohibits dispensing of single-use plastics and condiment items unless requested by the customer, and further mandates that cities adopt an enforcement mechanism by June 1, 2022. Staff presented a report regarding this new requirement at the regular council meeting of April 26, 2022. At Council direction, staff submitted a draft ordinance for introduction at the regular council meeting of May 10, 2022; after discussion, and upon hearing public comment regarding this matter, the Council approved the introduction of the Ordinance, which is based on the ordinance adopted by the City of Goleta. By doing so, Council has adopted a two-step approach, seeking to adopt by the state deadline of June 1, 2022 an ordinance that meets enforcement obligations under AB 1276, with additional local restrictions on single use plastics to be discussed at a future date.

CONCLUSION: Presented for final adoption is an ordinance that meets the local enforcement obligations imposed by AB 1276.

Attachments: Staff report and draft ordinance from Council meeting of May 10, 2022

Attachment 1 to
May 24, 2022 Report to Council
Date Page 1

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of May 10, 2022

TO: Mayor Bailey and Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Patrick Tang, City Attorney
Michael Roberts, Public Works Director/City Engineer

SUBJECT: AB 1276 – Single-Use Plastics Reduction Enforcement Requirements

RECOMMENDED ACTION:

Staff recommends that the City Council waive first reading and approve for introduction the attached Ordinance implementing AB 1276 single -use plastics reduction enforcement requirements.

FISCAL IMPACT OF RECOMMENDATION:

Enforcement of the single-use plastic reduction enforcement requirements would require an as yet undetermined amount of code enforcement and administrative staff time.

EXECUTIVE SUMMARY:

AB 1276 prohibits dispensing of single -use plastics and condiment items by food service establishments unless those items are requested by the customer, and further mandates that cities adopt an enforcement mechanism by June 1, 2022. Staff presented a report regarding this new state law requirement at the regular council meeting of April 26, 2022. After discussion, and upon hearing public comment regarding this matter, the Council directed that staff return with an AB 1276 compliant ordinance similar to the example provided at the April 26, 2022 meeting (the Goleta model). By doing so, Council has adopted a two-step approach, seeking to put in place by the state deadline of June 1, 2022 an ordinance that meets the enforcement obligations under AB 1276, with additional requirements that may include further local restrictions on single use plastics to be discussed at a future date.

BACKGROUND:

Every year in the United States, an estimated 561 billion disposable plastic items are used, resulting in 4.9 million tons of waste.1 Much of this plastic ends up in the ocean, approximately 2.4 million tons of plastic waste each year from the United States alone. California communities are estimated to spend more than $428 million annually to clean up and control plastic pollution.2

1 E. Moss, R. Grousset, The Dirty Truth about Disposable Foodware, The Overbrook Foundation – February 2020. 2 Ocean Protection Council.

DISCUSSION:

On October 5, 2021, AB 1276 was signed into law by Governor Newsom. AB 1276 amends existing law to support the goal of reducing the use of, and waste generated by, all single-use food service products. Specifically, this bill prohibits a food facility from providing any single -use foodware accessory or standard condiment, as defined, unless requested by the consumer. It further prohibits these items from being bundled or packaged in a way that prohibits the consumer from taking only the item desired. Additionally, AB 1276 requires that on or before June 1, 2022, local jurisdictions shall authorize an enforcement agency to enforce the regulations. Penalties under AB 1276 include a notice of violation for the first two violations, with any subsequent infraction punishable by a fine of $25 for each day in violation, but not to exceed $300 annually.

Active enforcement of single-use plastic food service ware regulations may not be possible given current code enforcement staffing levels; it is likely that violations would be investigated on a complaint-only basis. Issuing, administering, and collecting administrative penalties is a staff intensive effort and fines received typically do not cover the City’s cost in administering the penalty program.

CONCLUSION:

In response to Council direction obtained at the May 26, 2022 regular city council meeting, staff is presenting for introduction an ordinance that meets the local enforcement obligations imposed by AB 1276.

Attachments:

1) Ordinance providing for the enforcement of AB 1276 single-use foodware accessories and condiment regulations
2) Staff report and related attachments from Council meeting of May 26, 2022 Attachment 1 to
May 10, 2022 Report
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERCULES ADDING TITLE 5, CHAPTER 12, SECTIONS 5-12.01 TO 5 -12.06 TO THE HERCULES MUNICIPAL CODE REGULATING SINGLE-USE

FOODWARE ACCESSORIES AND STANDARD CONDIMENTS

WHEREAS, the California State Legislature has recognized that littered plastic products have caused and continue to cause significant environmental harm and have burdened local governments with significant env ironmental cleanup costs (California Public Resources Code Section 42355); and

WHEREAS, in October 2021, Governor Newsom signed into law California State Assembly Bill (AB) 1276 which expands on existing law prohibiting restaurants from providing single -use plastic straws unless requested by the consumer, by prohibiting food facilities from providing any single- use foodware accessory or standard condiment, as defined, to a consumer unless requested by the consumer; and

WHEREAS, single -use foodware access ories, including napkins, straws, condiments, forks, spoons, sporks, knives, and other disposable flatware create waste and environmental hazards, and therefore should only be made available upon request in compliance with AB 1276; and

WHEREAS, over one hundred municipalities in California have adopted ordinances prohibiting or restricting single -use foodware accessories, which have reduced the volume of single -use foodware accessories in waste streams and throughout the natural environment; and

WHEREAS, AB 1276 as amended requires the City to authorize an enforcement agency to enforce its requirements; and

WHEREAS, the City of Hercules seeks to implement AB 1276 as amended by authorizing an enforcement agency to enforce its requirements prohibiting distribution of single-use foodware accessories and standard condiments unless requested by the consumer on or before June 1, 2022.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERCULES DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Code Amendment. Title 5, Chapter 12, Regulation of Single-Use Foodware Accessories and Standard Condiments, Sections 5-12.01 to 5-12.06 are hereby added to Title 5, Chapter 8.10 (“Sanitation and Health”) of the Hercules Municipal Code and shall read as follows:

Chapter 12. Single-Use Foodware Accessory and Standard Condiment Reduction Ordinance

5-12.01 Title
5-12.02 Purpose and Applicability
5-12.03 Definitions
5-12.04 Requirements
5-12.05 Exemptions
5-12.06 Enforcement and Penalties

5-12.01 Title
This Chapter shall be known as “Single-Use Foodware Accessory and Standard Condiment Reduction Ordinance” and may be so cited.
5-12.02 Purpose and Applicability
The City Council finds and declares that the purpose of this Chapter is to comply with AB 1276 and mandate that all single-use foodware accessories and standard condiments be made available upon request only.
5-12.03 Definitions
(a) “AB 1276” means the California State Assembly Bill regulating the distribution of single-use foodware accessories by food vendors to be made available only upon request of the consumer. The new law applies to plastic and non-plastic single-use foodware items and standard condiments. This law requires the City of Hercules to authorize an enforcement agency on or before June 1, 2022.

(b) “Single-use Foodware Accessories” means disposable products intended for single or limited number of uses, used in the restaurant and food service industry for serving or transporting prepared, ready -to-consume food or beverages. Single -use foodware includes, but is not limited to, plates, cups, bowls, trays, hinged or lidded containers, straws, stirrers, lid plugs, lids and utensils. This does not include disposable packaging for unprepared foods.

(c) “Standard Condiment” means relishes, spices, sauces, confections, or seasonings that require no additional preparation and that are usually used on a food item after preparation, including ketchup, mustard, mayonnaise, soy sauce, hot sauce, salsa, salt, pepper, sugar, and sugar substitutes.

(d) “Food Service Vendor” means any business, organization, entity, group, or individual providing prepared food or beverages for public consumption on or off its premises within the City of Hercules.

(e) “Digital Ordering Platform” means the digital technology provided by an internet website or mobile application used by customers to order food and/or schedule food delivery.

(f) “Refillable Self-service Dispenser” means a container or equipment that is used to hold disposable foodware accessories for customers to obtain at their discretion.

5-12.04 Requirements for Food Service Vendors
A. Food Service Vendors shall only distribute single -use foodware accessories and standard condiments upon the request of the customer, unless a local, county or Stat e emergency order is in effect requiring distribution of such single -use foodware accessories and standard condiments. However, employees are not prohibited from asking customers if they would like any single -use foodware accessories or standard condiments and providing the amount requested by the customer.

B. Food Service vendors shall place signs on the premises to inform customers and employees that single -use foodware accessories and standard condiments are offered only upon request.

C. Food Service vendors shall include in their Digital Ordering Platforms for ordering food a statement that communicates that single -use foodware accessories are offered only upon request and shall include the ability for customers to select which foodware accessories or standard condiments they want. The food service vendor shall customize its menu with a list of available single-use foodware accessories and standard condiments, and only those single -use foodware accessories or standard condiments selected by the consumer shall be provided by the food facility. If a consumer does not select any single- use foodware accessories or standard condiments, no single -use foodware accessory or standard condiment shall be provided by the food facility for delivery of ready -to-eat food.

D. Food Service Vendors shall instruct employees to inform customers that single -use foodware accessories and standard condiments are offered only upon request.

E. Food Service Vendors shall not package Single-use Foodware Accessories and Standard Condiments in a manner that prohibits a customer from taking only the type of Single-use Foodware Accessory or Standard Condiment desired without also having to take a different type of Single-use Foodware Accessory or Standard Condiment.

F. Food Service Vendors may ask a drive-through customer if the consumer wants a Single- use Foodware Accessory if the Single -use Foodware Accessory is necessary for the consumer to consume ready-to-eat food, or to prevent spills of or safely transport ready- to-eat food, or to prevent spills of or safely transport ready-to-eat food. 5-12.05 Exemptions
A. This Chapter shall not apply to Refillable Self-Service Dispensers. Food Service Vendors may therefore make Standard Condiments and Single-use Foodware Accessories available for customers to obtain as needed. Food Service Vendors are encouraged to use bulk dispensers for the condiments rather than condiments packaged for single-use.

B. This Chapter shall not apply to the following institutions or facilities:
a. Correctional institutions, which has the same meaning as in Section 7502 of the Penal Code.
b. Health care facilities licensed pursuant to Article 1 (commencing with Section 1250) of Chapter 2 of Division 2 of the Health and Safety Code or facilities that are owned or operated by a health care service plan licensed pursuant to Chapter 2.2 (commencing with Section 1240) of Division 2 of the Health and Safety Code. c. Residential care facilities licensed pursuant to Division 2 (commencing with Section 1200) of the Health and Safety Code.
d. Public and private school cafeterias, as referenced in paragraph (1) of subdivision (b) of Section 113789 of the Health and Safety Code.
5-12.06 Enforcement and Penalties
A. The first and second violations of this Chapter shall result in a notice of violation, and any subsequent violation shall constitute an infraction punishable by a fine of twenty-five dollars ($25) for each day in violation, but not to exceed an amount of three hundred dollars ($300) annually.

B. Unless otherwise provided for in this Chapter, the City’s procedures on imposition of administrative fines, Title 1, Chapter 4, Sections 1 -4.01-1-4.03, are hereby incorporated in their entirety, as modified from time to time, and shall govern the imposition, enforcement, collection, and review of administrative citations issued to enforce this Chapter and any rule or regulation adopted pursuant to this Chapter. This Chapter shall only apply to those entities subject to the City’s regulatory jurisdiction.

C. The City Manager, or his/her designee, shall have primary responsibility for enforcement of this Chapter and shall have authority to issue citations for violation of any provision of this Chapter. The City Manager, or his/her designee, may establish regulations or administrative procedures and take any actions reasonable and necessary to further the purposes of this Chapter or to obtain compliance with this Chapter, including, without limitation, performing an inspection of a retail establishment’s premises to verify compliance with this Chapter.

D. Any violation of any of the requirements of this Chapter shall constitute an infraction.

Each and every day that a violation occurs shall constitute a separate violation.

E. The remedies and penalties provided in this Chapter are cumulative and not exclusive, and nothing in this Chapter shall preclude the City from pursuing any other remedies. The City Attorney may seek legal, injunctive, or any other relief to enforce the provisions of this Chapter and any regulation or administrative procedure developed pursuant hereto.

SECTION 3. No Conflict with Federal or State Law. Nothing in this Chapter is intended to create any requirement, power, or duty that is in conflict with any federal or state law.

SECTION 4: CEQA. The City of Hercules has determined that the adoption of this Ordinance is exempt from review under the California Environmental Quality Act ("CEQA") (California Public Resources Code Section 21000, et seq.), pursuant to State CEQA Regulation §15061(b)(3) (14 Cal.

Code Regs.§ 15061(b){3)) covering activities with no possibility of having a significant effect on the environment.

SECTION 5. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

SECTION 6. Certification. The City Clerk shall certify to the adoption of this ordinance and, within 15 days after its adoption, shall cause it to be published in accord with California Law.

SECTION 7. Effective Date. This ordinance shall take effect on the 31st day following final adoption by the City Council.

INTRODUCED ON the 10th day of May, 2022.

PASSED, APPROVED, AND ADOPTED this ________day of ______ 2022

_________________________

DION BAILEY
MAYOR
ATTEST:
__________________________

LAUREN BERGES

CITY CLERK

AYES:

NOES:

ABSENT:

ABSTENTIONS:

1 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of April 26, 2022

TO: Mayor Bailey and Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Patrick Tang, City Attorney
Michael Roberts, Public Works Director/City Engineer

SUBJECT: AB 1276 – Single-Use Plastics Reduction Enforcement Requirements

RECOMMENDED ACTION:

Accept staff report, and provide direction to staff regarding the scope of a proposed ordinance implementing AB 1276 enforcement requirements.

FISCAL IMPACT OF RECOMMENDATION:

Enforcement of the single-use plastic reduction requirements would require an as yet undetermined amount of code enforcement and administrative staff time.

EXECUTIVE SUMMARY:

The purpose of this item is to provide an update on recent state law affecting the regulation of single- use plastic items, provide information on components of ordinances addressing single -use plastic reduction including approaches utilized by other jurisdictions, and seek feedback from the Council on next steps regarding development of similar regulations for the City.

BACKGROUND:

Plastic pollution is a massive problem. Every year in the United States, an estimated 561 billion disposable items are used, resulting in 4.9 million tons of waste.1 Much of this plastic ends up in the ocean, with approximately 2.4 million tons of plastic waste each year from the United States alone.

Because plastic degrades and breaks down into pieces only very slowly, it poses a huge threat to wildlife and ecosystems and makes clean-up efforts more challenging. California communities are estimated to spend more than $428 million annually to clean up and control plastic pollution.2

In light of Governor Newsom’s signing of Assembly Bill 1276 (AB 1276), which amended existing law regulating single -use plastic straws, staff seeks input regarding the City’s approach to

1 E. Moss, R. Grousset, The Dirty Truth about Disposable Foodware, The Overbrook Foundation – February 2020. 2 Ocean Protection Council.

2 development of regulations intended to satisfy State requirements for compliance with AB 1276, and the potential for expanding upon existing law, if directed by Council.

DISCUSSION:

On October 5, 2021, AB 1276 was signed into law by Governor Newsom. AB 1276 amends existing law to support the goal of reducing the use of, and waste generated by, all single-use food service products. Specifically, this bill prohibits a food facility from providing any single -use foodware accessory or standard condiment, as defined, unless requested by the consumer. It further prohibits these items from being bundled or packaged in a way that prohibits the consumer from taking only the item desired. Additionally, AB 1276 requires that on or before June 1, 2022, local jurisdictions shall authorize an enforcement agency to enforce the regulations. Penalties include a notice of violation for the first two violations, with any subsequent infraction punishable by a fine of $25 for each day in violation, but not to exceed $300 annually.

While AB 1276 does not ban single-use plastic foodware - it makes it only available upon request - the law specifically states that nothing in it prevents a local jurisdiction from adopting and implementing an ordinance or rule that would further restrict a fo od facility or a third -party food delivery platform from providing single -use foodware accessories or standard condiments to a consumer. Therefore, the City may choose to expand upon the existing law.

Many cities in California have expanded upon state law and have banned some single-use plastics completely. For example, Daly City, Santa Monica, and Malibu have banned plastic utensils and stirrers in favor of marine-degradable and/or compostable disposable food service ware. The penalties for failure to comply with these bans vary in severity. Many jurisdictions issue notices of violation, and others issue fines that exceed the amounts s pecified in AB 1276. In Laguna Beach, fines are cumulative and go up to $500 for the third and each subsequent day of viola tion after an initial warning.

The summaries below highlight the range of actions taken by a few cities as examples:

• Berkeley – Disposable accessory items (straws, stirrers, utensils, condiment packets, etc.) to be provided only on customer request, and all disposable accessory items must be certified compostable.

• Palo Alto – Final passage of an ordinance adopting the minimum AB 1276 requirements is scheduled to be heard by the City Council on April 18, 2022.

• Daly City - On September 13, 2021, the Daly City Council adopted a Disposable Food Service Ware Ordinance eliminating the unnecessary distribution and use of single -use plastics. The City’s new regulation will require Daly City food facilities to transition t o non- plastic alternatives. Straws, stirrers, bundled utensils, and cocktail/toothpicks (and the packaging that these individual items are wrapped in if any) must be non-plastic and compostable materials , or reusable wherever practicable. Acceptable materials include natural fiber-based products such as paper, sugarcane, wheat stalk/stem, bamboo, wood, etc. Traditional plastics (petroleum -based) and compostable plastics (aka bioplastics or polylactic acid [PLA]) shall not be allowed.

3 Plates, bowls, cups, food trays, clamshells, boxes, deli containers, and other containers must be non -plastic and compostable, or reusable wherever practicable.

Additionally, these items shall be certified by the Biodegradable Products Institute (BPI) or an approved third party.
• Santa Barbara - The City of Santa Barbara has regulations in place that prohibit plastic straws and stirrers, and which makes plastic cutlery available upon request. These restrictions are compliant with AB 1276. Santa Barbara has adopt ed a separate ordinance that bans Polystyrene food containers.

• Carpinteria - The City of Carpinteria in 2019 banned single-use plastic foodware all together, and made non-plastic foodware only available upon request. Carpinteria is in compliance with AB 1276 and goes a step further by placing restrictions on all single-use food accessories.

• Goleta – To meet the state deadline of June 1, 2022 , for compliance with AB 1276 requirements, the City of Goleta is taking a two-step approach to proposed plastic reduction regulations. The first step is the proposed ordinance to bring the City into compliance with the state legislation (The first reading of the Ordinance is scheduled for April 19, 2022). The second step includes developing a second ordinance that would expand upon state law by prohibiting additional types of single-use plastics.

• West Hollywood - The City of West Hollywood is currently in the process of banning plastic products in food service. On October 4th, 2021, the City of West Hollywood City Council directed staff to draft an amendment to the City’s municipal code to prohibit food and beverage providers from distributing single -use non -marine-degradable disposable food service ware. This includes single-use plastic straws, utensils, containers, lids, lid plugs, cups, bowls, etc.

• Manhattan Beach - Manhattan Beach banned single use plastic foodware in 2018, and in 2019 banned meat trays, egg cartons, and has restrictions on balloons to reduce plastic pollution.

CONCLUSION:

As mentioned previously, AB 1276 requires that the City authorize an enforcement agency to enforce the new regulations by June 1, 2022. Staff will proceed with developing a draft ordinance to comply with AB 1276 requirements , based on Council direction reg arding the scope of the proposed ordinance. There are two decision points: 1) Should the City ordinance address the provision of single- use foodware accessories only on request, consistent with AB 1276, or should it be expanded to limit or entirely prohibit single-use plastic food service ware, as a number of cities have done? 2) Should the City ordinance retain the AB 1276 fine of $25 for each day in violation but not to exceed $300 annually, or set a higher violation rate such as the $100/$200/$500 admini strative citation rate provided in the existing Hercules Municipal Code?

By banning single-use plastics and/or setting a higher penalty rate, the City of Hercules would go beyond the requirements of AB 1276. If the decision is made to further restrict or ban single-use plastics, this may impose a hardship on local restaurant owners who may then have to incur the cost to re-stock with marine-degradable and/or compostable disposable food service ware. Some cities,

4 such as Daly City, conducted extensive outreach to local food businesses to obtain feedback and address concerns prior to adopting a ban on single-use plastics. Goleta is considering a future ban on single-use plastics to be considered for adoption after outreach to and feedback from the community, but in the short term will consider the passage of an ordinance that meets the minimum threshold requirements under AB 1276. If a ban on single-use plastics is to be considered, an effective date sometime in the future could be included, to allow restaurants time to acquire alternative food service ware.

Active enforcement of single-use plastic food service ware regulations may not be possible given current code enforcement staffing levels ; it is likely that violations would be investigated on a complaint-only basis. Issuing, administering, and collecting administrative penalties is a staff intensive effort and fines received typically do not cover the City’s cost in administering the penalty program.

Regardless of which approach is taken, an effort will need to be made to inform both residents and food businesses of their obligations under the newly adopted provisions. By implementing regulations resulting in source reductions for single-use plastic items, the City would be supporting one aspect of a more comprehensive approach to reducing plastic pollution.

Attachments:

1) Sample AB 1276 ordinance from City of Goleta (does not expand AB 1276 enforcement requirements)
2) AB 1276 Full Text

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of May 24, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Edwin Gato, Director of Finance

SUBJECT: Accept the Investment Report for the Quarter Ending March 31, 2022

RECOMMENDED ACTION: Accept the Investment Report for the Quarter Ending March 31, 2022.

FISCAL IMPACT OF RECOMMENDATION: This is an information report with no fiscal impact.

DISCUSSION: This report presents the City’s investment portfolio for the q uarter ending March 31, 2022. It has been prepared to comply with regulations contained in California Government Code Section 53646 and City’s Investment Policy. The report includes all cash and investments managed by the City. It also includes City-related investments held by bond trustees for debt service obligations as well as money held in the irrevocable trust with PARS for pension and other post-employment benefits (OPEB). The report provides information on the investment type, issuer, maturity date, cost, and current market value for each security.

The City utilizes the Local Agency Investment Fund (LAIF) as a money market fund administered by the State Treasurer. LAIF has many governmental agency participants and holds securities through its administrator. LAIF provides local agencies a way to invest cash held in the treasury pool that may be withdrawn as needed on a same-day basis to meet the agency’s cash flo w needs while realizing interest generated by the Pooled Money Investment Account (PMIA). Moreover, the Investments held by Bond Trustees are administered in accordance with individual bond indentures.

As of March 31, 202 2, the overall pooled investment portfolio average yield (before adjustments for changes in market value) was -0.89%, which is lower than the rate for two- year U.S. Treasury Note at 0.39% and LAIF average monthly rate of 0.365%.

On March 31, 2022, the market value of the pooled portfolio was $494,358 lower than the book value. As the City does not intend to sell its pooled investment portfolio securities prior to maturity, this will have no effect on yield.

The 57.59% of the total Investment Portfolio was deposited with LAIF as of March 31, 2022.

LAIF has 66.18% of its investments in U.S. Treasuries and agency notes, 7.38% in CDs and bank notes, and 26.44% in other types of investments. Additional economic summaries and specific information related to each of the investment advisors and LAIF are included in the Investment Portfolio Summary Report included in attachment 1.

The City invests its idle cash from all operating funds on a pooled basis to maximize returns.

Earnings are allocated to each fund based on the average cash balance. Total investment income for the City as of March 31, 2022 was $55,566. The timing of revenue collections, such as property tax, business licenses, and franchise tax, affects the quarterly investment income during the year. There is adequate cash to meet expected obligations over the next six months.

Governmental Accounting Standards Board (GASB) Statement 40 requires t he City to recognize the fair market value of its investments at the end of each fiscal year. The market values of investments included in this report are obtained from the State Controller’s office for LAIF and from the City’s registered investment managers and bond trustees for all other investments. These market valuations are subject to daily changes. The difference between market value and historical costs, known as Unrealized Investment Gains and Losses, are temporary in nature and are not cash rela ted transactions. Since it is the City’s general intention to hold its investments until maturity, when they would be redeemed at par value, any unrealized gain or loss is only reported at the end of the fiscal year in the City’s Comprehensive Annual Financial Report.

Of the total cash and investments reported above, only the portions held in the City’s General F und (approximately $ 17.3 million, or 23%) and Internal Service Funds (approximately $1.6 million, or 2%) are unrestricted, although a portion of these amounts may be committed for existing obligations or designated for speci fic purposes. The Amount
Market Over/(Under) Average
Investment Type Value Cost Yield
Petty Cash $2,255 - 0.00%
Cash in Bank 8,182,182 - 0.05% Local Agency Investment Fund (LAIF) 43,151,511 ($490,822) 0.37% Irrevocable Trust (Pension) 2,144,377 - -5.06% Irrevocable Trust (OPEB) 2,785,863 - -5.06% Investments with Bond Trustees 19,362,897 (3,537) 0.22% Total Portfolio $75,629,085 ($494,359) -0.89%

remaining $58 million, or 75%, of the City’s cash and investments are restricted for specific uses, in accordance with federal, state or local agency rules and regulations.

ATTACHMENTS:

1. Quarterly Investment Report

Financial Impact
Description:

Funding Source:

Budget Recap:

Total Estimated cost: $ New Revenue: $
Amount Budgeted: $ Lost Revenue: $
New funding required: $ New Personnel: $
Council Policy Change: Yes No

1 Investment Report
For Quarter Ended March 31, 2022

City of Hercules, California

City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended March 31, 2022
Book % of Average Market
Value Total Yield Value
Cash on Hand $2,255 $2,255
Cash on Deposit 7,987,699 7,987,699
Total Cash on Hand 7,989,954 10.50% 0.05% 7,989,954 Local Agency Investment Fund (LAIF) 43,836,815 57.59% 0.37% 43,343,806 Irrevocable Trust (Pension) 2,144,377 2.82% -5.06% 2,144,377 Irrevocable Trust (OPEB) 2,785,863 3.66% -5.06% 2,785,863 Investments with Bond Trustees 19,366,434 25.44% 0.22% 19,362,897 Total Portfolio $76,123,443 100.00% -0.89% $75,626,897
Amount over (under) Market Value vs. Book Value ($496,546) % of Portfolio -0.6523%
Investments by TypeCash on HandLAIFIrrevocable Trust(Pension)Irrevocable Trust(OPEB)Investments withTrustees City of Hercules
Detail for Investment Portfolio Summary Report
For the Quarter Ended March 31, 2022
(DAYS)

BOOK PURCHASE MATURITY LIFE TO REMAINING PAR MARKET

DESCRIPTION VALUE RATE YIELD DATE DATE MATURITY LIFE VALUE VALUE

CASH ON HAND
PETTY CASH 2,255.00 0.00% 0.00% 2,255.00 $2,255.00

CASH IN BANK
MECHANICS BANK - GENERAL CHECKING 2,805,517.04 0.00% 0.00% 2,805,517.04 2,805,517.04 MECHANICS BANK - HERCULES RDA 5,016,610.92 0.00% 0.00% 5,016,610.92 5,016,610.92 MECHANICS BANK - PD ASSET SEIZURE 145,570.37 0.00% 0.00% 145,570.37 145,570.37 CalTRUST 20,000.77 0.19% 0.19% 12/31/2021 3/31/2022 90 - 20,000.77 20,000.77 TOTAL AND AVERAGES 7,987,699.10 0.05% 0.05% 90 - 7,987,699.10 7,987,699.10

LOCAL AGENCY INVESTMENT FUND (LAIF)
LAIF 43,836,815.38 0.37% 0.37% 12/31/2021 3/31/2022 90 - 43,836,815.38 43,343,806.30

IRREVOCABLE TRUST (PENSION/OPEB)
US BANK MUTUAL (PARS-OPEB) 2,785,862.61 -5.06% -5.06% 12/31/2021 3/31/2022 90 - 2,785,862.61 2,785,862.61 US BANK MUTUAL (PARS-PENSION) 2,144,377.14 -5.06% -5.06% 12/31/2021 3/31/2022 90 - 2,144,377.14 2,144,377.14 TOTAL AND AVERAGES 4,930,239.75 -5.06% -5.06% 90 - 4,930,239.75 4,930,239.75

INVESTMENTS WITH BOND TRUSTEES
GE CAPITAL CORPORATION 14,517.08 3.03% 3.03% 12/31/2021 3/31/2022 90 - 14,517.08 14,517.08 STERLING NATIONAL BANK 543,749.10 0.02% 0.02% 12/31/2021 3/31/2022 90 - 543,749.10 543,749.10

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES RDA SER 05 07 REVENUE FUND) 38.04 0.00% 0.00% 12/31/2021 3/31/2022 90 - 38.04 38.04

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES RDA SER 05 RESERVE FD) 2,812,987.35 0.19% 0.19% 12/31/2021 3/31/2022 90 - 2,812,987.35 2,812,915.05

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2007A REVENUE FD) 4.69 0.00% 0.00% 12/31/2021 3/31/2022 90 - 4.69 4.69

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2007B REVENUE FD) 2.60 0.00% 0.00% 12/31/2021 3/31/2022 90 - 2.60 2.60

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2007B RESERVE A C) 1,082,602.11 0.01% 0.01% 12/31/2021 3/31/2022 90 - 1,082,602.11 1,082,602.11

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2007B PROJECT FD ACCOUNT) 52,112.40 0.01% 0.01% 12/31/2021 3/31/2022 90 - 52,112.40 52,112.40

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2007A RESERVE A C) 955,997.04 0.01% 0.01% 12/31/2021 3/31/2022 90 - 955,997.04 955,997.04 THE BANK OF NEW YORK (BNY) JM RESERVE FUND55,797.47 0.00% 0.00% 12/31/2021 3/31/2022 90 - 55,797.47 55,797.47

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES RDA 2007A PROJ REIMB ACCT) 2,705.69 0.19% 0.19% 12/31/2021 3/31/2022 90 - 2,705.69 2,705.69

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES RDA 2007A RESERVE ACCT) 3,813,442.63 0.19% 0.19% 12/31/2021 3/31/2022 90 - 3,813,442.63 3,813,442.63

THE BANK OF NEW YORK (BNY) MELLON TRUST
WWPT REVENUE BONDS (COST OF ISSUANCE)2,887.50 0.00% 0.00% 12/31/2021 3/31/2022 90 - 2,887.50 2,887.50

THE BANK OF NEW YORK (BNY) MELLON TRUST
WWPT REVENUE BONDS (ACQUISITON COSTS)8,325,000.00 0.00% 0.00% 12/31/2021 3/31/2022 90 - 8,325,000.00 8,325,000.00 City of Hercules
Detail for Investment Portfolio Summary Report
For the Quarter Ended March 31, 2022
(DAYS)

BOOK PURCHASE MATURITY LIFE TO REMAINING PAR MARKET

DESCRIPTION VALUE RATE YIELD DATE DATE MATURITY LIFE VALUE VALUE

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 REVENUE FUND) 492,093.84 0.19% 0.19% 12/31/2021 3/31/2022 90 - 492,093.84 488,628.71

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV PRIN ACCT)174,023.31 0.19% 0.19% 12/31/2021 3/31/2022 90 - 174,023.31 174,023.31

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV INT ACCT) 113,690.39 0.19% 0.19% 12/31/2021 3/31/2022 90 - 113,690.39 113,690.39

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 RESERVE FD) 920,215.00 0.19% 0.19% 12/31/2021 3/31/2022 90 - 920,215.00 920,215.00

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES BASE RENTAL PYMT) - 0.00% 0.00% 12/31/2021 3/31/2022 90 - - -

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2020 INT FD) 4,567.80 0.00% 0.00% 12/31/2021 3/31/2022 90 - 4,567.80 4,567.80 TOTAL AND AVERAGES 19,366,434.04 0.22% 0.22% 90 - 19,366,434.04 19,362,896.61 TOTAL INVESTMENT REPORT $76,123,443.27 -0.89% -0.89% 90 - $76,123,443.27$75,626,896.76 City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended March 31, 2022
% of
Cash Description Book Value Total
Bond Trustee $19,366,434 25%
Irrevocable Trust 4,930,240 6%
Restricted 32,978,185 43%
General Fund 17,257,721 23%
Internal Service Funds 1,590,863 2%
$76,123,443 100%
Restricted:

Wastewater 20,894,766
Successor Agency 5,016,611
Development Impact Fees 2,040,625
Landscape & Lighting 2,607,024
Solid Waste 953,936
Gas Tax & Measure J "Street" 728,245
Asset Seizure 145,570
Other Special Revenue Funds 591,408
32,978,185
Bond Trustee 25%Irrevocable Trust 7%Restricted 43%General Fund 23%Internal Service Funds 2%Cash by Fund Mar 0.365
Feb 0.278
Jan 0.234

0.00000875657176851

0.988753538
LAIF Earnings Ratio(2):

LAIF Fair Value Factor(1):

PMIA Daily(1): 0.42%

0.32LAIF Apportionment Rate(2):

PMIA Quarter to Date(1): 0.29%
310PMIA Average Life(1):

Treasuries

66.18%
Agencies

17.78%
Certificates of
Deposit/Bank Notes

7.38%
Time
Deposits

1.99%
Commercial
Paper

6.11%
Corporate
Bonds

0.20%
Loans

0.36%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a).

Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 03/31/22
Chart does not include $5,704,000.00 in mortgages, which equatesto 0.003%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
03/31/22
$207.9 billion

City of Hercules
As of March 31, 2022
Presented By
Randall Yurchak, CFA
PARS: City of Hercules
Performance Inception: 6/1/2010
The OPEB plan was invested in account 6746019207, PARS Balanced HighMark Plu s, from June 1, 2010 to December 31, 2017. The Plan was then subsequently in vested in account 6746050104, PARS Moderately Conservative H ighMark Plus, from January 1, 2018 and onwards. R eturns are gross of account level investment adv isory fees and net of any fees, including fees to manage mutual fund or exchange traded fund holdi ngs. Returns for periods over one year are annualized. The information p resented has been obtained from sources believed to be accurate and reliable. Past performance i s not indicative of future returns. Securities are not FDIC insured, ha ve no bank guarantee, and may lose value.
2 Year
to Date
(3 Months) 1 Year 3 Years 5 Years 10 Years
Inception
to Date
06/01/2010
Cash Equivalents .01 .02 .63 .96 .53 .45
Lipper Money Market Funds Index .01 .01 .61 .91 .48 .41 Total Fixed Income -5.51 -3.67 1.88 2.26 2.47 2.97
Bloomberg US Aggregate Bd Index -5.93 -4.15 1.69 2.14 2.24 2.80 Total Equities -4.81 6.01 14.50 12.60 11.49 12.11
Large Cap Funds -4.72 12.22 18.21 15.43 14.07 14.18
S&P 500 Composite Index -4.60 15.65 18.92 15.99 14.64 15.07 Mid Cap Funds -5.59 6.96 14.73 12.44 11.21 12.34
Russell Midcap Index -5.68 6.92 14.89 12.62 12.85 13.50 Small Cap Funds -3.59 -3.11 12.53 12.15 12.84 13.80
Russell 2000 Index -7.53 -5.79 11.74 9.74 11.04 11.60
International Equities -5.95 -4.94 7.91 7.02 5.05 6.03
MSCI EAFE Index -5.91 1.16 7.78 6.72 6.27 6.89
MSCI EM Free Index -6.97 -11.37 4.94 5.98 3.36 4.21
REIT Funds -6.01 21.39 10.87 9.63
Wilshire REIT Index -3.87 29.14 11.94 10.04 9.90 11.43
Total Managed Portfolio -5.06 -.37 5.82 6.24 6.71 7.53
Selected Period Performance
Hercules OPEB
Period Ending: 3/31/2022

Asset Allocation – OPEB Plan
As of March 31, 2022
PARS: City of Hercules
3 Current Asset Allocation Investment Vehicle
Equity Range: 20%-40% 29.09%
Large Cap Core COFYX Columbia Contrarian Core Inst3 2.91% VGIAX Vanguard Growth & Income Adm 5.44%
Large Cap Value DODGX Dodge & Cox Stock Fund 2.51%
IVE iShares S&P 500 Value ETF 1.19%
Large Cap Growth HNACX Harbor Capital Appreciation Retirement 1.66% PRUFX T. Rowe Price Growth Stock Fund I 1.66%
Mid Cap Core IWR iShares Russell Mid-Cap ETF 3.00%
Small Cap Value UBVFX Undiscovered Managers Behavioral Val R6 2.23% Small Cap Growth VBK Vanguard Small-Cap Growth ETF 2.28% International Core DFALX DFA Large Cap International I 1.78% International Value DODFX Dodge & Cox International Stock Fund 0.68% International Growth MGRDX MFS® International Growth R6 0.69% Emerging Markets HHHFX Hartford Schroders Emerging Mkts Eq F 2.01% Real Estate VNQ Vanguard Real Estate ETF 1.06%
Fixed Income Range: 50%-80% 67.85%
Short-Term VFSUX Vanguard Short-Term Investment-Grade Adm 13.32% Intermediate-Term DBLFX DoubleLine Core Fixed Income I 17.77% PTTRX PIMCO Total Return Instl Fund 17.82%
PTRQX Prudential Total Return Bond Q 17.89%
High Yield PHIYX PIMCO High Yield Instl 1.04%
Cash Range: 0%-20% 3.06%
FGZXX First American Government Oblig Z 3.06%
TOTAL 100.00%
PARS: City of Hercules
Performance Inception: 12/01/2017 Initial contribution was made on November 2017.

Returns are gross of account level investment advisory fees and net of any fees , including fees to manage mutual fund or exchange traded fund holdings. Returns for periods over one year are annualized. The information presented has been obtained from sources believed to be accurate and reliable. Past performance is not i ndicative of future returns. Securities are not FDIC insured, have no bank guarantee, and may lose value. 4 Year
to Date
(3 Months) 1 Year 3 Years
Inception
to Date
(52 Months)
Cash Equivalents .01 .02 .63 .99
Lipper Money Market Funds Index .01 .01 .61 .94
Total Fixed Income -5.51 -3.67 1.88 1.98
Bloomberg US Aggregate Bd Index -5.93 -4.15 1.69 1.96
Total Equities -4.81 6.01 14.50 11.17
Large Cap Funds -4.72 12.22 18.21 14.48
S&P 500 Composite Index -4.60 15.65 18.92 15.23
Mid Cap Funds -5.59 6.96 14.73 11.63
Russell Midcap Index -5.68 6.92 14.89 11.81
Small Cap Funds -3.59 -3.11 12.53 10.63
Russell 2000 Index -7.53 -5.79 11.74 8.38
International Equities -5.95 -4.94 7.91 4.42
MSCI EAFE Index -5.91 1.16 7.78 4.42
MSCI EM Free Index -6.97 -11.37 4.94 2.74
REIT Funds -6.01 21.39 10.87 9.78
Wilshire REIT Index -3.87 29.14 11.94 10.59
Total Managed Portfolio -5.06 -.37 5.82 4.90
Selected Period Performance

PARS/PRSP MODERATELY CONSERVATIVE HM
Account 6746050104
Period Ending: 3/31/2022

Asset Allocation – Pension
As of March 31, 2022
PARS: City of Hercules
5 Current Asset Allocation Investment Vehicle
Equity Range: 20%-40% 29.09%
Large Cap Core COFYX Columbia Contrarian Core Inst3 2.91% VGIAX Vanguard Growth & Income Adm 5.44%
Large Cap Value DODGX Dodge & Cox Stock Fund 2.51%
IVE iShares S&P 500 Value ETF 1.19%
Large Cap Growth HNACX Harbor Capital Appreciation Retirement 1.66% PRUFX T. Rowe Price Growth Stock Fund I 1.66%
Mid Cap Core IWR iShares Russell Mid-Cap ETF 3.00%
Small Cap Value UBVFX Undiscovered Managers Behavioral Val R6 2.23% Small Cap Growth VBK Vanguard Small-Cap Growth ETF 2.28% International Core DFALX DFA Large Cap International I 1.78% International Value DODFX Dodge & Cox International Stock Fund 0.68% International Growth MGRDX MFS® International Growth R6 0.69% Emerging Markets HHHFX Hartford Schroders Emerging Mkts Eq F 2.01% Real Estate VNQ Vanguard Real Estate ETF 1.06%
Fixed Income Range: 50%-80% 67.85%
Short-Term VFSUX Vanguard Short-Term Investment-Grade Adm 13.32% Intermediate-Term DBLFX DoubleLine Core Fixed Income I 17.77% PTTRX PIMCO Total Return Instl Fund 17.82%
PTRQX Prudential Total Return Bond Q 17.89%
High Yield PHIYX PIMCO High Yield Instl 1.04%
Cash Range: 0%-20% 3.06%
FGZXX First American Government Oblig Z 3.06%
TOTAL 100.00%
PARS: City of Hercules
6 1-Month 3-Month Year-to- 1-Year 3-Year 5-Year 10-Year Fund Name Return Return Date Return Return Return Return Columbia Contrarian Core Inst3 2.73 -2.96 -2.96 12.72 19.88 15.41 14.63 Vanguard Growth & Income Adm 3.67 -3.90 -3.90 16.04 18.83 15.78 14.65 Dodge & Cox Stock 1.53 1.01 1.01 14.85 17.30 13.27 14.25 iShares S&P 500 Value ETF 2.95 -0.21 -0.21 12.39 13.93 10.96 11.71 Harbor Capital Appreciation Retirement 3.72 -13.59 -13.59 3.49 20.59 20.32 16.25 T. Rowe Price Growth Stock I 0.56 -15.01 -15.01 -0.42 16.53 16.96 15.28 S&P 500 TR USD 3.71 -4.60 -4.60 15.65 18.92 15.99 14.64 iShares Russell Mid-Cap ETF 2.54 -5.72 -5.72 6.72 14.70 12.46 12.68 Russell Mid Cap TR USD 2.56 -5.68 -5.68 6.92 14.89 12.62 12.85 Undiscovered Managers Behavioral Val R6 -0.55 3.53 3.53 13.48 16.01 10.91 12.65 Vanguard Small-Cap Growth ETF 1.22 -11.95 -11.95 -9.25 11.84 12.64 11.92 Russell 2000 TR USD 1.24 -7.53 -7.53 -5.79 11.74 9.74 11.04 Dodge & Cox International Stock 0.84 -0.59 -0.59 2.99 8.01 5.17 6.24 DFA Large Cap International I 0.46 -4.93 -4.93 2.53 8.60 7.23 6.36 Hartford Schroders Emerging Mkts Eq F -3.66 -8.76 -8.76 -16.23 5.92 6.85 4.18 MFS International Growth R6 0.78 -8.13 -8.13 0.02 9.67 10.69 7.69 MSCI EAFE NR USD 0.64 -5.91 -5.91 1.16 7.78 6.72 6.27
MSCI EM NR USD -2.26 -6.97 -6.97 -11.37 4.94 5.98 3.36
Source: SEI Investments, Morningstar Investments

INTERNATIONAL EQUITY FUNDS
Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.

CITY OF HERCULES
For Period Ending March 31, 2022

LARGE CAP EQUITY FUNDS

MID CAP EQUITY FUNDS

SMALL CAP EQUITY FUNDS
PARS: City of Hercules
7 1-Month 3-Month Year-to- 1-Year 3-Year 5-Year 10-Year Fund Name Return Return Date Return Return Return Return Vanguard Real Estate ETF 6.32 -5.97 -5.97 21.45 11.40 9.65 9.69 PIMCO Total Return Instl -3.43 -6.19 -6.19 -4.02 2.18 2.50 2.73 PGIM Total Return Bond R6 -2.43 -6.51 -6.51 -3.29 2.20 2.94 3.50 Vanguard Short-Term Investment-Grade Adm -1.86 -3.80 -3.80 -3.67 1.49 1.78 1.96 DoubleLine Core Fixed Income I -2.36 -4.88 -4.88 -3.19 1.64 2.22 2.87 Bloomberg US Agg Bond TR USD -2.78 -5.93 -5.93 -4.15 1.69 2.14 2.24 PIMCO High Yield Instl -0.89 -4.70 -4.70 -0.91 3.77 4.12 5.14 ICE BofA US High Yield Mstr II Index -0.93 -4.51 -4.51 -0.29 4.40 4.56 5.74 Source: SEI Investments, Morningstar Investments

REAL ESTATE FUNDS

BOND FUNDS
Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.

CITY OF HERCULES
For Period Ending March 31, 2022

STAFF REPORT TO THE CITY COUNCIL

DATE:

Regular Meeting of May 24, 2022
TO:

Members of the City Council
VIA: Dante Hall, City Manager

SUBJECT: Report on City Council Goal Setting Workshop and Adoption of City Council 2022-2023 and Multi-year Priorities

RECOMMENDATION
Receive and File Report on Strategic Planning Workshop and Adopt by resolution the Hercules City Council 2022-2023 and Multi-year Priorities.

FISCAL IMPACT
The recommended action carries no fiscal impact. Funding for programs and projects described in the City Council 2022-2023 and Multi-year Priorities document will become part of the City’s normal annual and long-term planning and budgeting processes.

BACKGROUND
The City of Hercules held a Council goal-setting workshop on Saturday, April 30, 2022, from 8:30 a.m. to 2:00 p.m., at the City Hall Senior Center. The workshop was facilitated by representatives from Management Partners and provided an opportunity for Councilmembers to review and discuss priorities, celebrate recent successes, discuss best practices and protocols for meeting management, and strengthen teamwork. Th e attached report contains a summary of the results of the priority-setting session.

DISCUSSION
During the workshop, City Council members established priorities for FY 2022 -23 and several multi-year goals, as listed below:

Goals for FY 2022-23
 Regional Intermodal Transit Center (RITC)
 Financial sustainability

Multiyear Goals
 Multimodal station (RITC)

 Grow retail and commercial development to serve the community  Long-term financial plan

NEXT STEPS
Once the City Council adopts City Council 2022 -2023 and Multi -year Priorities , Management Partners will work with the City’s executive team to creat e an implementation action plan, which will contain timelines and assignments for carrying out specific strategies. City staff intends to provide regular progress reports to the City Council on the implementation of the priorities document. City staff also anticipates that it will be useful to revisit the Strategic Plan midway through its lifecycle to confirm or update it as appropriate.

ATTACHMENTS

1. Resolution

2. City Council 2022-2023 and Multi-year Priorities
ATTACHMENT 1

HERCULES CITY COUNCIL
RESOLUTION NO. 22-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES ADOPTING THE CITY COUNCIL 2022-2023 AND MULTI-YEAR PRIORITIES

WHEREAS, strategic planning is a disciplined effort of establishing the direction of an organization by assessing procedures and decisions to move the organization forward ; and

WHEREAS, the benefits of strategic planning are that organizations can increase their effectiveness and efficiency, make better decisions, improve communicatio ns with the public; and

WHEREAS, the consulting firm Management Partners led the City through the strategic planning process and developed a report identifying City Council’s priorities for 2022 - 2023 and beyond; and

WHEREAS, the City Council has reviewed the report and believes that it appropriately captures the priorities identified by the City Council,

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hercules does hereby adopt the attached report along with the identifi ed priorities for 2022-2023 and beyond.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 24th day of May 2022, by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

____________________________
Dion Bailey, Mayor

ATTEST:

Lauren Berges, CMC
City Clerk
Ma
y 2022
City of Hercules
City Council Goal Setting Workshop
Held April 30, 2022
ATTACHMENT 2 - City Council City Council 2022-2023 and Multi-year Priorities

City Council Goal Setting Workshop
Table of Contents Management Partners

i
Table of Contents
Workshop Report ...................................................................................................................................... 1 Workshop Overview ........................................................................................................................ 2 Opening Comments ......................................................................................................................... 4 Characteristics of Effective Governing Bodies ............................................................................. 5 Celebrating Accomplishments ....................................................................................................... 8 Strengths and Challenges ................................................................................................................ 8 Key Staff Projects .............................................................................................................................. 9 Council’s FY 2022-23 Goals ............................................................................................................. 9 Council’s Multiyear Goals ............................................................................................................ 10 Staying Focused on Priorities ....................................................................................................... 10 Council Committees....................................................................................................................... 11 Wrap Up and Next Steps............................................................................................................... 11

City Council Goal Setting Workshop
Workshop Report Management Partners

1 Workshop Report
The City of Hercules held a Council goal setting workshop on Saturday, April 30, 2022, from 8:30 a.m. to 2:00 p.m., at the City Hall Senior Center.

The workshop provided an opportunity for Councilmembers to review and discuss priorities, celebrate recent successes, discuss best practices and protocols for meeting management, and strengthen teamwork. This report contains a summary of the results of the priority setting session.

Senior Manager Christine Butterfield and Special Advisor Magda Gonzalez with Management Partners facilitated the workshop.

Council established goals for FY 2022-23 and multiyear goals, as listed below.

Goals for FY 2022-23
• Regional Intermodal Transit Center (RITC)
• Financial sustainability
Multiyear Goals
• Multimodal station (RITC)
• Grow retail and commercial development to serve the community • Long-term financial plan

City Council Goal Setting Workshop
Workshop Report Management Partners

2 Workshop Overview
Objectives
• Review and discuss governance roles, norms and strengthen teamwork
• Discuss best practices and develop Council meeting management protocols
• Establish Council priorities for 2022 and multiyear goals Agenda
• Welcome and call to order by the Mayor
• Public comments
• Comments from the City Manager
• Review and discuss effective governing bodies
• Celebrate recent accomplishments
• Review the City’s strengths and challenges
• Staff presentations of key projects and challenges
• Review and prioritize Council’s top goals for FY 2022-23 • Review and prioritize Council’s multiyear goals
• Establish ground rules to maintain focus on top goals • Wrap up and next steps
Workshop Ground Rules
At the start of the workshop, Christine suggested several ground rules to help the group have a successful workshop.
• Be curious
• Speak one at a time
• Listen to understand
• Show respect for all
• Individually participate in the dialogue

City Council Goal Setting Workshop
Workshop Report Management Partners

3 Participants
City Council
Mayor
Dion Bailey
Vice Mayor
Alexander Walker-
Griffin
Councilmember
Dan Romero

Councilmember
Chris Kelley
Councilmember
Tiffany Grimsley

Executive Staff
• Dante Hall, City Manager
• Patrick Tang, City Attorney
• Lauren Berges, City Clerk/Public Information Officer
• Edwin Gato, Finance Director
• Robert Reber, Community Development Director
• Mike Roberts, Public Works Director/City Engineer
• Christopher Roke, Parks and Recreation Director
• William Imboden, Police Chief
Workshop Preparation
In preparation for the workshop, Christine and Magda held individual interviews with each Councilmember and discussed workshop objectives with the City Manager. They prepared an agenda and PowerPoint

City Council Goal Setting Workshop
Workshop Report Management Partners

4 presentation along with other materials to guide discussions during the session. Additionally, City staff prepared information on the near-term projects and challenges.

The themes pertaining to the City Council’s top goals and priorities that emerged from the individual interviews are listed below. • Community engagement
• Collaboration
• Transparency
• Good governance
• Financial sustainability
• Clear goal setting
• Capital improvements
• Business attraction
• Multi-modal transit plan

Opening Comments
The workshop began with a welcome and call to order from Mayor Bailey, who asked for the roll call with all Councilmembers present. He then invited public comment.

City Manager Dante Hall then offered a few opening comments about why the workshop was important and what he hoped the group would gain from the session. He explained that clear direction from the Council on priorities is needed because of the City’s limited resources. Then Dante turned the session over to the facilitators.

Christine provided an overview of the day to help develop a shared understanding of the workshop’s purpose, agenda, and objectives. She reviewed the ground rules and explained the purpose of the “bike rack,” which is a time management tool that tracks items that are raised but will not receive attention during the workshop. The following items were added to the bike rack during the session:

City Council Goal Setting Workshop
Workshop Report Management Partners

5 • Establish protocol for additional information gathered by Councilmembers
• Determine how to move past a financial crisis mindset • Establish standards for presenting information and reports in a systematic way
• Develop strategies for managing work and workload
• Establish performance metrics
• Determine feasibility of morning or late-night study sessions • Ensure website and all communication are current and updated • Find new and improved ways to communicate with the
community
• Update Council subcommittee policies and procedures
• Invite former mayors to speak with Council at a separate session • Provide Council with updates on OPEB and other policy issues/ questions (e.g., financial policies)
Characteristics of Effective Governing Bodies
The facilitators presented a refresher on best governance practices to set a framework for discussing and establishing short-term and multiyear goals. Christine posed five questions to the group pertaining to Council’s governing practices. Councilmembers wrote down their answers, then shared them with the group. The questions asked and a summary of the responses are provided below.

What do we expect from one another?
• Transparent communication
• Preparation for meetings
• Respectful and professional behavior; we know people are watching
• Integrity, honesty, mutual respect
• Be nice to one another
• Feel free to ask questions and contribute to discussions • Be ready to state your opinion
• Don’t take things personally
• Take notes
• Doing research outside of staff work is helpful
• What should be the protocol for sending that information to the City Manager to share with other Councilmembers?
• We don’t always have to agree
• Consider others’ perspectives
City Council Goal Setting Workshop
Workshop Report Management Partners

6 What do I expect from myself?
• Build relationships with teammates
• Engage with the community
• Everything that was mentioned in the first question discussion; I hold myself to the same standards as others
• Do not come with pre-assumptions
• Listen
• Follow the golden rule
What are our Council’s strengths? We…
• Share an interest in long-term success of the City
• See ourselves as a united team
• Feel Hercules is a wonderful, unique place
• Value and listen to our diverse community
• Have respect for the Brown Act
• Avoid “gotcha” behavior
How can we maximize our strengths?
• Have more in-person community events to build relationships • Adapt and improve as needed; foster continuous improvement • Hired Dante as the City Manager
• Leadership, new skillset among the staff
• Align policy and resources
• Embrace technology and new ways of approaching things • Communicate with the community; report back to the community as issues get resolved
• Get over the idea that we are in crisis
• Look at other strategic plans that look into the future to maximize our resources and impact
What would make us (Council) more successful as a team? • Build trust and relationships
• Fully support the items that are moved forward
• Acknowledge climate so we can plan accordingly
• All items on list of strengths above
• Get to know Councilmembers better (This was hard during COVID, but we have the opportunity now)
• Encourage senior Councilmembers to support and guide new Councilmembers in terms of process
• Have informal discussions
• Understand each other’s perspective and experience
City Council Goal Setting Workshop
Workshop Report Management Partners

7 • Don’t assume intent
• Communicate more with the community
o Communicate updates/changes
o Update website information
Magda explained that effective governance is a team sport and that personal commitment to working together is required for good governance. Council reviewed the Institute of Local Governments (ILG) article, “Attributes of Exceptional Councils.” Magda explained that effective councils share a unity of purpose; understand roles and responsibilities; foster a positive governance culture; and establish norms, protocols, and procedures. The six attributes of exceptional councils are listed below.

Magda asked the group if there was anything that resonated from the ILG article. A summary of the responses offered are provided below. Council members agreed that they should:
• Be proactive to join training,
• Contact City Councils from other cities,
• Collaborate and “stay in our lane”, and
• Understand the process and roles.

Exceptional City Councils…

1. Have a sense of team – a partnership with the city
manager to govern and manage the city

2. Clear roles and responsibilities that are understood and adhered

3. Honor the relationship with staff and each other

4. Routinely conduct effective meetings

5. Hold themselves and the city accountable

6. Have members who practice continuous improvement

City Council Goal Setting Workshop
Workshop Report Management Partners

8 Celebrating Accomplishments
After a brief stretch break, the group reconvened to celebrate some of the City’s recent accomplishments. The purpose of this discussion was to celebrate and reflect on recent successes. The City Council and staff mentioned the accomplishments listed below.
• Passed the Hercules equal pay ordinance
• Completed Safeway (market, gas, Peet’s Coffee)
• Achieved one officer per 1,000 population
• Implemented Hercules connect (to communicate with residents) • Held the value of diversity discussion regarding the “hate”/flag policy
• Installed new streetlights and solar panels
• Launched Greening of Hercules Campaign
• Created the Police Chief Advisory Board
• Held successful townhall meetings
• Built regional and statewide relationship
• Filled potholes
Strengths and Challenges
Magda reviewed the themes that emerged from the Council interviews pertaining to the strengths and challenges the City is currently facing. A summary of these strengths and challenges is provided in Table 1 below.

Table 1. Hercules’ Strengths and Challenges
Strengths Challenges
• Waterfront development
• Hope for the future
• Recovery from the Great Recession fiscal crisis
• Plan to construct a regional intermodal transit center (RITC)
• Providing youth amenities and services
• Attracting retailers to downtown around the train
station
• Partnering with neighboring jurisdictions
• Making Hercules a destination
• It's a beautiful community!
• Maintaining financial sustainability
• Funding for RITC
• Siloed (physically) neighborhoods
• Improving City services and neighborhood
improvements
• Facilitating amenities
• Community involvement

City Council Goal Setting Workshop
Workshop Report Management Partners

9 Key Staff Projects
The City Manager led the group through a discussion of key projects over the next two years. The list of projects includes the following:
• Hotel development
• Senior Center services
• Capital improvement plan (CIP); update and improve the plan to include all the City’s needs (facilities, roads, etc.) and a financial plan
• Financial sustainability, including utility users' tax (UUT) renewal • Other post-employment benefits (OPEB)
• Staffing issues
o Recruitment and retention
o Institutional knowledge
o Path to promote
• Housing Element update
• Parks Master Plan (address deferred maintenance)
• Trees and sidewalks (addressing liability)

Council’s FY 2022-23 Goals
Christine reviewed the themes from the Council interviews pertaining to goals for the next fiscal year. The group discussed each goal, including strategies for implementation. Then Council participated in a dot voting exercise to establish top priorities. The goals and voting results are shown below. Bold items indicate a Council priority.
• Renewal of UUT renewal (2 votes)
• Community engagement (1 vote)
• Regional Intermodal Transit Center (RITC) (3 votes)
• Financial sustainability (3 votes)
• Community safety (1 vote)

City Council Goal Setting Workshop
Workshop Report Management Partners

10 Council’s Multiyear Goals
Magda reviewed themes from the Council interviews pertaining to multiyear goals. Again, the group discussed each goal to develop a shared understanding of what they hope to accomplish in the next three to five years. Then Council participated in a voting exercise to establish top multiyear priorities. The goals and voting results are shown below.

Bold items indicate a Council priority.
• Community engagement strategy (1 vote)
• Multimodal station/RITC (4 votes)
• Grow retail and commercial development to serve the
community (4 votes)
• More community programs and amenities (0 votes)
• Long-term financial plan (5 votes)
• Long range planning (1 vote)
• Complete the sidewalk network (0 votes)
Staying Focused on Priorities
Next, there was a discussion about what would help the Council/staff team stay on track, given the City’s limited staff and financial resources.

Staff committed to align programs, projects, and activities with budget, staffing, and workloads; build priorities into the budget and workplans; and provide periodic updates to Council.

Christine explained that only about 10% of staff capacity is available to dedicate to work on the new goals and suggested that Council minimize referrals and defer new projects that would divert staff and budget resources from the established priorities. Council engaged in a discussion about how they would remain focused on the priorities and how they would hold one another accountable. A summary is provided below. • Hold briefings on progress made on the goals
• Connect staff reports to goals
• Use metrics
• Communicate goals to the community along with their rationale • Exhibit personal commitment to the goals
• Say “no” to new goals
• As new issues emerge invite Council to reprioritize goals • Clarify the process for amending goals
• Ask and evaluate staff hours and other resources needed to invest in new and changing priorities
• Create a report with resident requests/ideas; add it to list of potential projects, priorities
City Council Goal Setting Workshop
Workshop Report Management Partners

11 Council Committees
Councilmembers discussed guidelines and protocols for their committees.

A summary is provided below.
• Council committees include
o Education
o Economic Development
o Traffic/Public Safety
• Conduct committee meetings quarterly
• Agendas developed with input from staff and the City Council (include items from the list of Council requests maintained by the City Manager’s Office)
• Distribute committee agendas to Council
• Provide committee updates at Council meetings
• Budget items must be approved by the Council
• Develop clear policies, procedures, and authority levels for each subcommittee
Wrap Up and Next Steps
Magda then reviewed next steps. She explained that staff would prepare an action plan for each of the goals, which will be presented during a future Council meeting. Magda also shared that Management Partners would prepare and submit this report.

Reflections from Council
To conclude the workshop, Councilmembers were asked to share one word about what was useful in spending the day together. These are provided below.
• Positive,
• Refreshing,
• Good discussion,
• Productive, and
• Teambuilding.

STAFF REPORT TO THE CITY COUNCIL

DATE:

Regular Meeting of May 24, 2022
TO:

Members of the City Council
VIA: Dante Hall, City Manager

SUBMITTED BY: Edwin Gato, Director of Finance

SUBJECT: Program Design Considerations for Yiftee Digital Gift Card Pilot Program

Recommendation
Approve the Yiftee Pilot Digital Gift Card program components and implementation measures.

Fiscal Impact
The Gift Card Program will be funded through the ARPA funds

Background
On April 26, 2022, the City Council authorized the City Manager to execute an agreement with Yiftee for a Shop Local/Gift Card program utilizing the approved allocation of $65,000 of ARPA monies for funding. As indicated at the 4/26/22 meeting, Yiftee has no set-up or monthly costs, and the approved budget of $65,000 of ARPA monies will pay for:

 The $1+5% eDelivery fee (purchaser fee) plus a $1 bonus gift fee per card.  A bonus gift card to incentivize the use of the program and provide a benefit to all community members.
 Branding costs associated with the development of the “shop local Hercules” campaign.
 Marketing costs for advertisement and promotion of the program and related point- of-sale signage and posters for participating businesses.

Recommended Program Design

1. Shop Local Program Bonus Gift Incentive
Many communities are integrating a bonus gift incentive to the community to encourage the success of their programs, amplify the infusion of dollars into the local economy and provide incentives to shop local. Typically, community digital gift card programs have a resident buy a gift card (for example) valued at $50, with the initial investment from the resident being $25. Then they receive a ‘purchase bonus’ amount of another $25 paid by the city through ARPA funding. In other words, it is ‘buy one and get one free’ for residents. Hercules has the discretion to set the level of incentive appropriate to our community, in addition to limits on purchases per customer. Staff is proposing the following incentive system to pilot with the Program, which will be available to all purchasers of community gift cards:
 Buy a gift card valued at greater than $5 and receive a bonus gift card equal to the value purchased, with a maximum purchase limit of $250 per card with the promotion.
 A limit of 5 cards per customer.
 The Gift Card (original purchase amount) does not expire. Still, the staff recommends that the bonus gift card expir e six months (120 days) after purchase (any expired unspent bonus gift funds would be returned to the City for redistribution after a restocking fee).
 The City will pay all purchasing and delivery fees during the Pilot Program while funds remain (first come, first serve).

2. Eligible Businesses
Staff is recommending the following parameters for business participation in the Pilot Program:
 Is a for-profit business in one of the following categories:
o Retail
o Restaurant/Cafe
o Personal Services limited to the following only:
 hair stylists
 barbers
 estheticians
 massage therapists
 gyms
 nail salons
 dry cleaners
 tanning salons
 pet groomers
 fitness/specialty studios including martial arts, yoga, dance, and music

 Operates from a physical storefront (home-based businesses are not eligible)  Maintains a current City business license
 Has no open code enforcement actions
 Has 20 or fewer full-time equivalent employees as of December 1, 2021  Is either independently owned/operated or a locally-owned chain (i.e., local outlets of chains or franchises headquartered outside of Hercules are not eligible)

3. Marketing
Marketing is an essential component of the Pilot Program. The City needs to market the availability of the gift cards to the public. The marketing strategy start s with the branding of the program. HdL Econ Solutions will lead the branding and marketing effort and work with a local business (as recommended by the Chamber representative at the Economic Development Committee meeting on April 20, 2022).

The purpose will be to develop an identity for the program, including graphics and tag lines, and assist with a marketing and distribution strategy. At a minimum, the program would be marketed on social media, flyers, posters, and window clings displayed in the storefro nts of participating merchants, at community events, and via the local press/media. The web portal, provided by the Yiftee platform and customized with Hercules’ branding, will be used as the landing page to detail the program, showcase participating merchants, highlight the incentive/bonus gifts, and allow customers to make gift cards purchases. The web portal would be linked from the City’s website. At no cost, Yiftee provides the City with template marketing documents, press releases, flyers, and social media posts that can be customized and distributed.

4. Expiration of Program
Staff recommends that the Council consider receiving an update on the success and challenges of the Pilot Program after three to four months of the Program's official launch to fine-tune the Program if required. The Council may consider an additional allocation of APRA funding based on the Program's success. Metrics to measure the success of the Program could include:
 The rate of sales of gift cards verses the rate of expenditure of cards (are the cards being used?)
 The total amount of gift cards sold (is marketing the program effective?)  The breakdown in gift card value/denominations (what values are most popular? Perhaps bonus gift money could be adjusted to encourage sales)  Where the cards are being spent (are they all in certain business categories, or distributed throughout the community?)
 Total cash infusion into the local economy

Although the purchase amount of the gift cards does not expire, staff also recommends that to expeditiously circulate the funds into the local economy, the bonus gift cards expire after six months (120 days) of the initial purchase. Expired bonus gift card funds then can be recirculated to the community.

Attachments

1. Yiftee’s Gift Card Program Summary Presentation

2. Hercules Community Gift Card Program

3. Resolution
Community Cards
Pandemic recovery and beyond!
Keep local dollars local
Shopping Local Benefits Community
Jobs, donations, taxes, services, suppliers stay local
2 Small Businesses Need Help
Small businesses = 99% of US businesses, 60M US jobs
½ of the private sector workforce
Hard hit by pandemic
200k more than usual permanently closed in 2020 (src: WSJ, April 2021) 1 in 3 were closed during the pandemic (src: Harvard University, Economic Tracker, June 2021) Recovery will take time
It took 6 yrs. to recover from 2008-09 recession (src: McKinsey and Co.) Lasting effects in supply chain disruption hit small business hardest Trend: Enlisting communities in the recovery
Via public-private partnerships
3 Powered by
Community Cards Bring New Revenue to Local
Businesses
A digital gift card that unites business, consumers and local merchants How it works
- Multi-use paper or digital gift card, lives on your
phone, any value >$5
- Works at any number of different merchants in
a community
- Merchants opt-in to the program at no cost
- Consumers give them as gifts to family and
friends via email or text
- Businesses give them as employee rewards,
marketing programs, survey incentives,
contests, customer appreciation/recovery, etc.
- Cards do not expire. Yiftee provides customer
support and security
“Gives back” to local communities
Yiftee Confidential
Powered by
Gift Card $200
Your gift does not expire. Fees may apply. See below.

Available to companies & individuals via web page, web links, enterprise app, Facebook Community Card Buyers
Powered by
Yiftee Confidential
Employee Rewards, Consumer Deals, Gifting Fund Raising Bulk Purchase Customer Appreciation Offers, Loyalty Schools, Non-profits Gift Card

Sponsorships Support Local Businesses
Local employers,
city, state &
federal funding,
professionals,
community groups
and others can
give gifts and/or
sponsor a bonus
gift program.

Impact to local
business is
multiplied by
consumers
purchasing cards.
eDelivery fee
discounts available
for bulk
purchases.

Recognizing Community Sponsors
Sponsors may cover eDelivery
fees, bonus gifts, gift purchases,
marketing costs, etc.

Recognized on eGift
page, PR, social
media, website, etc.

Bonus Offers Sweeten the Pot (Optional)
Participating merchants can make Bonus Offers for people to use their Cards in their stores. This attracts people to buy the cards for self-use.

Powered by
Redeeming Your eGift
Community Cards
Refreshes to
current balance
Show this card to the cashier
$10.00
MasterCard validates transaction
Do not exceed card value
Powered by
Multi-use, unique-to-this-gift digital
MasterCard, redeemable only at
participating merchants
Any merchant that takes MasterCard
can participate. Key in codes to redeem
(like a phone order)
Reconciled by normal MC bank. CNP
interchange fees apply on redemption
No App required on phone to redeem,
Yiftee sends monthly reminders. Gifts
can be printed eGift Card DEMO
Text the word “smitten” to: (855) 890-2028
Simple to Deploy:

No external hardware, terminals or integration
Buyer
Buys online eGC at face
value of card
Recipient
Uses eGC at Merchant
Merchant
Process eGC as any
other MC transaction
Takes payment,holds
payment in escrow
Customer presents digital or
printed voucher in store, Merchant
processes as CNP transaction
MasterCard pays Merchant,
Yiftee pays MasterCard
Powered by
Normal funds settlement for merchants; no funds transfer or liability for organizer; no fraud risk for merchants or organizer
Gift Card $200
How to Get Your Own Community Card
Custom branded to your community
1) Secure interest from residents, companies,
realtors, schools, non-profits, etc. to use for
gifting, fund raising, visitors, customer
appreciation, employee rewards, etc.
2) Secure interest from merchants to participate –
no cost other than credit card (CNP) processing
fees paid on redemption
3) Yiftee will set up account then you upload list of participating merchants. They simply run “Activation card” which is a $0.10 Mastercard on their PoS to opt-in 4) Cost summary: $1+5% of gift value "eDelivery fee" paid by gift sender at time of purchase. Periodic reminders to use will be sent when possible to gift recipient.

Subject to local laws, Yiftee may apply inactivity fees after 12 months of no redemption activity. Gifts do not expire unless sent by a business as a promotion or award in which case an expiration date up to a year from time of issuance may be applied. If gifts expire, Yiftee retains 10% of gift value and the remaining balance is rebated to sender.

Powered by
Sponsored by State Bank
Optional: secure interest from sponsors
to fund marketing programs
Your gift does not expire. Fees may apply. See below.

Summary:

Community Cards Strengthen Communities
Simple to deploy, no hardware or integration, zero fraud risk ◦ Anyone that takes Mastercard can participate
◦ No backoffice administration needed
◦ Always available to consumers on their phones or printed Large employers and organizations jumpstart gift sales
◦ Employee rewards, holiday gifts, welcome gifts, surveys, marketing, wellness… ◦ Fund raising campaigns with specific merchants who offer discounts ◦ Bulk card purchases made easy
No set-up costs, no monthly costs, $1+5% eDelivery fee per card You can get “sponsors” for the card like a local bank to cover eDelivery fee, Buy-One-Get-One bonus gifts, marketing costs and/or charitable contributions
Powered by
What we do: Community eGift cards and promotions bringing new revenue to small businesses in cities, towns, downtowns and main streets.

Employers, professionals and consumers buy them to keep local dollars local.

Customers: 350+ communities, 20,000 merchants. Key partnerships with Mastercard, city gvmts, chambers of commerce, downtowns, main streets.

Business model: Service is free to organizers and merchants. Yiftee is paid by card buyers who purchase cards to support their local businesses.

Launch date: December 2012
Location: Menlo Park, CA, customers nationwide
Services: Community cards, eGift cards, digital promotions, payment processing, security and end user customer and merchant support.

Who is Yiftee?
Powered by

Case Studies
Com-
munity
Launch
Date $ Sold #
Merchants
# Cards
(as of
11/30/21)
Detroit, MI
Pop: 673k 11/2017 $3.1M 100 37,100
Dayton, OH
Pop: 141k 12/2020 $203k 81 6,200
North Bay
Village, FL
Pop: 8k
11/2020 $79k 10 800
“Yiftee is the best thing we’ve experienced!”
- Alexis@Bedrock Development, Detroit
Powered by

Donna Novitsky, Yiftee CEO
[email protected]
Powered by
Appendix: Merchant FAQ’s
Q: Is there a deadline to participate?
A: We are planning a launch on ??? to introduce the Card to the community. Sign up before then so that you are a part of the launch program and get this incremental business.

Q: How do I process the eGift Card?
A: Process it as a credit card (not debit or gift card) and key in the transaction like a phone order. Mastercard will validate. Do not go over the value of the card or the transaction will be declined. If this happens, start over and charge equal or less than the card value.

Q: What if the purchase is for more than the eGift Card value? A: Run the eGift Card for the remaining balance on the card, and ask the customer for a different form of payment to cover the rest of the transaction.

Q: What do I do if the eGift Card is ‘declined’?
A: The transaction is declined if you try to redeem more than the value of the card, or if any of the redemption information is mis-typed. Start the transaction over with the correct value and info.

Q: Does the eGift Card function as a ‘pre-paid’ credit card regarding automatic tipping hold-backs? A: No. It can be redeemed for the full value. We do not recommend allowing tipping on the card because it is a prepaid card.

Q: Since the eGift Card is like a Mastercard, can it be redeemed anywhere? A: No. They can only be redeemed at participating locations.

Q: Is there a fee to purchase the eGift Card?
A: The gift sender pays $1.00 plus 5% of the gift value. The gift recipient gets 100% of the gift value. The store is paid the full value of the card, less their normal card-not-present Mastercard fee.

Q: Can the eGift Card be used more than once?
A: Yes. They are multi-use and the current balance and expiration date are always reflected on the digital voucher. Recipients receive monthly reminders to redeem.

Q: Can I apply a refund to the eGift Card?
A: Yes. Refunds can be applied to a valid (unexpired) card just as you would to a credit card.

Yiftee Community Gift Card Pilot Program

• The City Council authorized the City Manager to execute an agreement with Yiftee for a Shop Local/Gift Card program. • The pilot program will be funded with the approved allocation of $65,000 of ARPA monies.
• The City Council is being asked to review and approve the Yiftee Pilot Digital Gift Card program components and implementation measures.

Yiftee Gift Card Pilot Program

The $65,000 of ARPA monies will pay for:
• The $1+5% eDelivery fee plus a $1 bonus gift fee per card • A bonus gift card
• Branding costs
• Marketing costs
ARPA Funding
• Buy a gift card valued at greater than $5 and receive a bonus gift card equal to the value purchased, with a maximum
purchase limit of $250 per card with the promotion
• Limit of 5 cards per customer
• Bonus gift card expires 6 months (120 days) after purchase and the funds would be returned to the City for recirculation Bonus Gift Incentive
• For-profit Retail, Restaurant/Café or Personal Service business • Operates from a physical storefront
• Maintains a current City business license
• Has no open code enforcement actions
• Has 20 or fewer full time equivalent employees as of December 1, 2021 • Is either independently owned/operated or a locally-owned franchisee Eligible Businesses
• HdL ECONSolutions will lead the branding and marketing effort • The web portal, provided by the Yiftee platform, will be used as the landing page
• The web portal would be linked from the City’s website • Yiftee provides the City with template marketing documents, press releases, flyers and social media posts at no cost
Marketing
• Staff recommends that an update be provided to the Council on the success and challenges of the Pilot Program after 4-6 months • The Council may consider additional allocation of APRA funding based on the success of the program.
• Since there is no cost to the City or businesses, the City could continue to host and promote the program even when ARPA bonus funds are not available.

Expiration of Program

RECOMMENDATION

APPROVE THE YIFTEE PILOT DIGITAL GIFT CARD

PROGRAM COMPONENTS AND IMPLEMENTATION

MEASURES
Questions ?

HERCULES CITY COUNCIL
RESOLUTION 22-

APPROVE THE PROGRAM DESIGN FOR YIFTEE DIGITAL GIFT CARD P ILOT

PROGRAM

WHEREAS, the COVID-19 worldwide p ublic health pandemic has resulted in num erous detrimental impacts on a global scale and includes national, regional, and local impacts; and

WHEREAS, the City of Hercules, its residents and busin ess community have experienced these impacts which includes significant impacts on Hercules’ business community; and

WHEREAS, the Mayor and the City Council seek to as sist the City of Hercules ’ business community in their recovery from the impacts of the pandemic; and

WHEREAS, On April 26, 2022, the City Council authorized the City Manager to execute an agreement with Yiftee for a Shop Local/Gift Card program utili zing the approved allocation of $65,000 funded by American Rescue Plan Act (ARPA); and

WHEREAS, Yiftee has no set -up or monthly costs, an d the approved budget of $65,000 of ARPA monies will pay for:

 The $1+5% eDelivery fee (purchaser fee) plus a $1 bonus gift fee per card.  A bonus gift card to incentivize the use of the program and provide a benefit to all community members.
 Branding costs associated with the development of the “shop local Hercules” campaign.  Marketing costs for advertisement and promotion of the program and related point-of-sale signage and posters for participating businesses.

WHEREAS, for eli gible business es, the following parameters is recommended fo r business participation in the Pilot Program:

 Is a for-profit business in one of the following categories:
o Retail
o Restaurant/Cafe
o Personal Services limited to the following only:
 hair stylists
 barbers
 estheticians
 massage therapists
 gyms
 nail salons
 dry cleaners
 tanning salons
 pet groomers
 fitness/specialty studios including martial arts, yoga, dance, and music  Operates from a physical storefront (home-based businesses are not eligible)  Maintains a current City business license
 Has no open code enforcement actions
 Has 20 or fewer full time equivalent employees as of December 1, 2021  Is either independently owned/operated or a locally owned chain (i.e., local outlets of chains or franchises headquartered outside of Hercules are not eligible)

WHEREAS, the Mayor and the City Council may consider an additional allocation of APRA funding based on the Program's success. Metrics to measure the success of the Program could include:

 The rate of sales of gift cards verses the rate of expenditure of cards (are the cards being used?)
 The total amount of gift cards sold (is marketing the program effective?)  The breakdown in gift card value/denominations (what values are most popular? Perhaps bonus gift money could be adjusted to encourage sales)
 Where the cards are being spent (are they all in certain business categories, or distributed throughout the community?)
 Total cash infusion into the local economy

WHEREAS, staff also recommends that the bonus gift cards expire after six months (120 days) of the initial purchase to circulate the funds into the local economy. Expired bonus gift card funds then can be recirculated to the community.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules hereby approve the program design considerations for Yiftee Digital Gift Card Pilot Program.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 24th day of May, 2022 by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________
DION BAILEY, Mayor

ATTEST:

________________________________
LAUREN BERGES, City Clerk/PIO

STAFF REPORT TO THE CITY COUNCIL

DATE:

Regular Meeting of May 24, 2022
TO:

Members of the City Council
FROM: Dante Hall, City Manager

SUBJECT: RESOLUTION APPROVING AN UPDATED AGREEMENT WITH

CONTRA COSTA COUNTY ANIMAL SERVICES DEPARTMENT

RECOMMENDATION
Staff recommends that the City Council approve a resolution authorizing the City Manager to execute an updated agreement with the Contra Costa County Animal Services Department (“Animal Services”).

FISCAL IMPACT
The City currently pays Animal Services approximately $174,000 annually through the General Fund. The updated agreement includes a defined fee structure for FY 22/23 and FY 23/24, which converts to a formula-based fee structure that will commence in FY 24/25. The fee structure is as follows:

 For the fiscal year 2022-2023, $7.97 for each person residing within the City limits as of January 2022. For example, Hercules’ population is 25,864. Therefore, Hercules’ Annual Fee for FY 22/23 is $206,136. For the fiscal year 2023-2024, $9.11 for each person residing within the City limits as of January 2023. For example, if Hercules’ population remained the same (25,864), the Annual Fee will be $235,621.

 For each fiscal year thereafter, the per ca pita rate for the Annual Fee shall be calculated using the following formula: (A) The County’s budgeted cost to provide Animal Services throughout the County in that fiscal year, minus the sum of animal licensing fees and user fees projected to be received from all County residents in that fiscal year, minus the budgeted County general fund contribution for that fiscal year, divided by (B) the sum of the population of the unincorporated area plus the population of all cities for which the County provides Animal Services.

 Each year, the County will prepare a reconciliation report of actual costs incurred by the County to provide Animal Services during the preceding year.

The City’s General Fund can absorb the future cost increases if the City executes the new agreement.

BACKGROUND
Since at least 200 5, Contra Costa County Animal Services has provided animal control services in Hercules through an agreement between the City and County. Animal Services performs animal control on behalf of all cities in Cont ra Costa County except Antioch, which has its own program.

Over the course of the past few years, Animal Services has been undergoing a strategic planning process to identify a new service model through which it can meet its legal requirements and achieve financial sustainability. Animal Services described this process in a presentation that was provided to the Hercules City Council on January 11, 2022, a copy of which is attached (Attachment C).

Animal Services is proposing a new service agreement between itself and all of the cities for which it performs services, attached (Exhibit 1 to the resolution). The new agreement more clearly defines the services that Animal Services will provide and increases per capita fees to achieve a balanced budget.

REVIEW & ANALYSIS
The current agreement from 2006 (attached) is one page in length, automatically renews each year, and provides little detail regarding what specific services will be provided. The updated agreement provides greater detail regarding service levels, including:

 Detailing specific services provided under the agreement for all areas of operation,  Creating accountability by listing target response times for each activity type,  Defining what is covered under deceased animal services,  Describing which services are not included under the agreement, and  Codifying performance reporting within the agreement.,

Animal Services has conducted an extensive analysis of its current services and fee levels and determined that its current fee levels are not adequate to financially sustain its services to cities. The new, higher fees that Animal Services is proposing in its new agreement are based on an analysis of what is required to meet the specific proposed service levels. The City shares Animal Services’ interest in having a program that is financially sustainable, as it is less likely to lead to unexpected service changes in the future.

The term of the newly proposed Agreement begins on the Effective Date and continues for two years. This Agreement shall automatically renew for successive three-year periods until either party terminates this Agreement by giving the other party 90 days advance written notice of termination.

The new agreement that Animal Services is proposing primarily includes services that are mandated by the State. It does not include certain services that some community advocates have requested. Animal Services has decided that it is sensible to execute new agreements with cities that focus on meeting basic requirements, and do not increase cities’ per capita costs too dramatically, rather than executing new agreements that include more expansive services and greater cost increas es. On March 17, 2022, all Contra Costa County cities received a letter of concern from a group named the Animal Rights Coalition regarding the proposed Animal Services agreement (Attachment E). The letter and attachments noted areas of concern and suggested recommendations along with other Animal Services agreements to compare. In response, Animal Services also submitted a letter to the City addressing concerns raised by citizens (Attachment F) .

Animal Services is not willing, at this point, to consider pr oviding different service levels, at different fees, for different cities, although that option will be further discussed during the two-year term of the proposed agreement.

Although the City’s costs will increase under the proposed agreement, City staff believes it is beneficial to the City to execute the new agreement with more clarity and commitment from Animal Services on service levels and contributes to the financial sustainability of Animal Service programs.

ATTACHMENTS

A. Resolution
Exhibit 1 - City – County Animal Services Agreement, Hercules, July 1, 2022 B. City – County Animal Services Agreement, Hercules, July 1, 2005 C. Hercules Animal Services Agreement Presentation, January 11, 2022 D. Contra Costa Animal Services (CCAS) - Serving Our Community! – CCAS Serving Hercules
E. Letter of Concern from the Animal Rights Coalition Regarding Contra Costa County Animal Services Agreement March 2022, To 18 Incorporated Cities: New Fees July 2022 F. Animal Services Letter of April 8, 2022, Regarding Recent Citizen Concerns

ATTACHMENT A
HERCULES CITY COUNCIL RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES, COUNTY

OF CONTRA COSTA, STATE OF CALIFORNIA, APPROVING AN UPDATED

AGREEMENT WITH CONTRA COSTA COUNTY ANIMAL SERVICES DEPARTMENT WHEREAS, the Contra Costa County Animal Services Department (“Animal Services”) currently provides animal control services in Hercules through an agreement between the City and County; and
WHEREAS, over the course of the past few years, Animal Services has been undergoing a strategic planning process to identify a new service model through which it can meet its legal requirements and achieve financial sustainability; and WHEREAS, Animal Services is proposing a new service agreement between itself and all of the cities for which it performs services (attached as Exhibit 1); and WHEREAS, the current agreement between the City and Animal Services, which automatically renews each year, does not contain a very specific description of services to be rendered nor performance standards and it is in the best interest of the City and Animal Services to have an agreement in place that more clearly defines these things; and
WHEREAS, although the City’s costs will increase under the proposed agreement, City staff believes that, on balance, it is beneficial to the City to execute the new agreement as it contains greater clarity and commitment from Animal Services on service levels and contributes to the financial sustainability of Animal Services’ programs; and WHEREAS, The term of the newly proposed Agreement begins on the Effective Date and continues for two years. This Agreement shall automatically renew for successive three-year periods until either party terminates this Agreement by giving the other party 90 days advance written notice of termination;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hercules does hereby authorize the City Manager to execute the proposed new service agreement between the City and Animal Services.

The foregoing Resolution was duly and regularly adopted at a special emergency meeting of the
City Council of the City of Hercules held on the 24th day of May 2022 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

ABSTAIN:

____________________________
Dion Bailey, Mayor

ATTEST:
____________________________
Lauren Berges, CMC
1 CITY-COUNTY ANIMAL SERVICES AGREEMENT
The County of Contra Costa, a political subdivision of the State of California ("County"), and the City of Hercules, a municipal corporation in the County ("City"), enter int o this City-C ounty Animal Services Agreement (“Agreement”) effective as of July 1, 2022 (“Effective Date”).

1. Authority. The City has adopted by reference Division 416 of the Contra Costa County Ordinance Code (hereafter "Division 416") governing animals.

Division 416 establishes requirements and procedures for animal control by the County’s Animal Services Department. This Agreement is entered into to memorialize the County’s provision of Animal Services and enforcement of Division 416 within the City as provided in Section 416-4.208, and as authorized by California Government Code section 51301.

2. Enforcement Duties and Personnel. The County will enforce Division 416 within the City’s boundaries. The City hereby designates and appoints the County's Animal Services Director and his or her staff as public officers of the City for the purposes of this Agreement and enforcing and carrying out its provisions.

3. Scope of Services.
a. In addition to enforcing Division 416, t he County will provide to the City the Field Services, Shelter Services, and Deceased Animal Services described in this Agreement (collectively, “Animal Services”) in the manner provided for in this Agreement. During periods of emergency (such as fire, earthquake, flooding, pandemic), it might not be possible to provide the Animal Services to the same extent and within the same time frames as during non-emergency times.
b. Calls made to the County for services that are not provided by the County pursuant to this Agreement will be referred back to the City in which the call was requested. In such a case, the City is responsible for determining the next appropriate action.
c. The County will provide Animal Services within the City’s boundaries in accordance with all applicable federal, state, and local laws, including the Ordinance Code.

4. Definitions.
a. “Critically Sick or Injured Animals” means those animals that have life- threatening conditions.
b. “Emergency Calls” means complaints of animal bites, potential rabies exposure, or attacks on humans or domestic animals that are in progress, or, when a bite or attack has occurred, where the animal remains an immediate threat to humans.
c. “Livestock” means a large domesticated agricultural animal, such as a Exhibit 1 - Hercules- City Service Agreement - Final
2 cow, bull, steer, horse, sheep, or other large agricultural animal. d. “Regular Field Services hours” means between 8:00 am and 9:00 pm each day of the week, including Saturdays and Sundays.

5. Field Services. The County will provide the following services (collectively, “Field Services”) within the City upon a request from a City resident or person within the boundaries of the City.
a. Pick up and attempt to return to their owners domesticated animals that are found “at large,” to the extent possible without impoundment by relying on the animal’s identification, including dogs, trapped, injured, or sick cats, and other small, domesticated animals, including rabbits, chickens, turkey, geese, and ducks, but excluding wildlife, such as deer, mountain lions, opossums, wild turkeys, raccoons, skunks or squirrels unless a rabies exposure has occurred.
b. Investigate complaints of animal bites, rabies exposure and attacks to humans or domestic animals, including documenting the incident, interviewing witnesses, quarantining animals, preparing and transporting animals for rabies testing, and investigating any alleged violations of a quarantine order.
c. Enforce provisions governing potentially dangerous and dangerous animals, including but not limited to investigating complaints, designating animals, impounding animals, conducting hearings, and issuing permits for animals designated dangerous or potentially dangerous. d. Enforce provisions governing barking dogs and other noisy animals, including but not limited to conducting hearings.
e. Respond during regular business hours to police or fire department calls for assistance regarding animal-related issues. The County may provide after-hours warrant support to the City with advance notice, if County Animal Services personnel are available and willing to volunteer for the assignment, and provided the City pays additional fees sufficient to cover the County’s actual costs.
f. Investigate, cite, impound, and seek resolution of complaints regarding potential mistreatment of domestic animals by their owners.

6. Response Times for Field Services.
a. The County will attempt to respond to requests for Field Services during the hours and within the times specified in this section. The County shall maintain records of its response times to calls for Field Services. i. Priority 1 calls are Emergency Calls, which are calls for assistance from police or fire personnel and calls regarding rabies exposure, dangerous animals, and Critically Sick or Injured Animals.

1. The County will respond to Priority 1, 2, and 3 calls between 8:00 AM and 9:00 PM, seven (7) days per week, including 3 holidays.

2. For ninety-five percent (95%) of responses to Priority 1 calls, County personnel will attempt to arrive on the scene within two (2) hours from the time when the call for service is received by County staff.
ii. Priority 2 calls are calls to pick up animals that were at large but have since been confined at a location within the County, and calls regarding urgent, animal-related requests for assistance not involving Critically Sick or Injured Animals.

1. The County will respond to Priority 2 calls during regular Field Services hours.

2. For eighty percent (80%) of responses to Priority 2 calls received during regular Field Services hours, County personnel will attempt to arrive on the scene within 12 hours from the time the call for service is received by County staff.

3. The County will respond to Priority 2 calls received outside of regular Field Services hours no later than 7:00 pm on the next day.

4. The County may respond to Priority 2 calls by taking a report by phone or by contacting parties and witnesses at the scene. iii. Priority 3 calls are all other calls, such as calls regarding animals at large, animals causing a nuisance, and dead animals.

1. The County will respond to Priority 3 calls during regular Field Services hours.

2. For sixty-five percent (65%) of responses to Priority 3 calls received during regular Field Services hours, County personnel will attempt to arrive on the scene within 24 hours from the time the call for service is received by County staff.

3. The County will respond to calls received outside of regular Field Services hours on the next day.

4. The County will respond to Priority 3 calls only after the County has responded to all then-outstanding Priority 1 and Priority 2 calls.

5. The County may respond to Priority 3 calls by taking a report by phone or by contacting parties and witnesses at the scene.

7. Shelter Services.
a. The County will provide the following services to City residents (“Shelter Services”):
i. Impound and shelter lost or stray dogs, injured/sick, lost or endangered community cats, and other small, domesticated 4 animals that are brought to the shelter by County staff, residents of the County or cities that have contracts with the County for the provision of Animal Services. A community cat is considered endangered if it is in imminent risk of being killed, poisoned, or injured but not if, due to being at large, it is at risk of starvation, being attacked by another animal, or hit by an automobile. Orphaned kittens that cannot survive without human intervention are also considered endangered.
ii. Impound and quarantine biting animals.
iii. Provide rabies testing of animals suspected of infection. iv. Provide for reclamation of abandoned, lost or stray domestic animals.
v. Provide onsite services to the public at the County’s Martinez shelter for the following: search for lost animals, reclaim animals, adopt animals, answer inquiries regarding animals, accept complaints regarding animals, provide vaccines and spay/neuter services for a small fee, conduct humane education programs, and license animals onsite or online.
vi. Provide care for sheltered animals based on the California Veterinary Board Guidelines for Standards of Care in Animal Shelters published by the Association of Shelter Veterinarians. vii. Provide services as required by the California Penal Code Section 597.1 and other laws governing shelters for animal care, treatment, holding periods, placements, and dispositions.
b. Medical Services. As part of the Shelter Services, the County will provide the following medical services (“Medical Services”):
i. The County will provide veterinarian services twenty-four (24) hours per day through partnerships with emergency vets to treat injured or sick impounded animals.
ii. If an animal’s condition requires immediate treatment outside of the County shelter’s regular business hours or when no veterinarian is on staff at the County’s shelter, then County Animal Services Department officers or Good Samaritans may take the animal to any emergency veterinarian clinic/hospital that is under contract with the County to provide emergency veterinary services (as posted on the County shelter’s doors and on the County’s Animal Services Department’s website).
iii. The County will monitor animals on a rabies virus quarantine. iv. The County will conduct a minimum of one vaccine clinic per month and maintain a spay and neuter clinic in Martinez, which for a fee paid by the animal’s owner will provide vaccine and spay/neuter services for County residents’ dogs and cats. The fee will be 5 approved by the County Board of Supervisors and published on the County Animal Services Department fee schedule.
v. Provide rabies control information free of charge to the public. vi. The County will provide emergency veterinary services in accordance with Section 597(f) of the California Penal Code. c. Shelter Services Hours
i. The Martinez shelter will be open to the public for a minimum of 30 hours per week, 5 days per week, 6 hours per day, including one weekend day each week except during weeks that are shortened by a County holiday.
ii. The Martinez Shelter will be closed on designated County holidays and one day per year dedicated to in-house staff training.

8. Deceased Animal Services. The County will provide the following services within the City in response to calls regarding deceased animals during regular Field Services hours:
a. Pick up deceased domestic animals, wildlife, and livestock from public property.
b. With property owners’ consent, pick up deceased domestic or wild animals from private property for a fee based on the Department’s fee schedule paid directly to the County Animal Services Department by the property owner or reporting party.
c. Identify and notify the owner of deceased animals, whenever possible. d. Dispose of the body of any deceased animal picked up by the County.

9. Excluded Services. The County will not provide the following services to the City under this Agreement:
a. Respond to requests for removal of live or deceased marine animals and disposal of deceased marine animals.
b. Pick up and transport wildlife, including baby birds. c. Pick up live animals for surrender. The County may, at its discretion, accept live animals belonging to County residents for surrender at the Martinez shelter and charge a fee to the animal owner or property owner as part of its regular operations.
d. Respond to pest control issues (i.e., infestations, perceived or real, of squirrels, rats, mice, insects, gophers, wasps, bees, spiders, or other pests).
e. Respond to calls regarding live, sick and injured racoons, opossum, deer, mountain lions, coyotes, wild turkeys, wild pigs, peacocks, or other wildlife unless a rabies exposure has occurred. The County will refer calls regarding live wildlife to the California Department of Fish and Wildlife.
6 10. Policies and Procedures. All policies and procedures shall be developed with the goal of ensuring animal welfare, enhancing cost efficiency and quality of services provided to the contracted cities and unincorporated areas of Contra Costa County. They will be developed to reflect best practices in the industry for animal control and shelter animal care using the Guidelines for Standards of Care in Animal Shelters published by the Association of Shelter Veterinarians, ASPCA, the Humane Society of the United States, National Animal Control Association (NACA) and/or other currently accepted best practices for animal control and animal sheltering.

11. Performance and Activity Reports. The County will deliver to the City within 14 days of the end of each quarter, an Animal Control and Results Report summarizing Animal Services provided by the County to the City during the previous quarter and including year-to-date data. This report will include the following information:
a. The total number of calls for service received by the County under this Agreement, identified by type of service and Priority level. b. A response time report identifying response times by Priority level. c. The outcomes for animals impounded, identified by City/County jurisdiction.
d. The number of calls for service received from City residents or persons within the City’s boundaries.
e. A listing of dogs registered to City residents identified as potentially dangerous or dangerous (PDA/DA) that have a valid County-issued PDA/DA permit.

12. Fees and Fines. Pursuant to Food and Agricultural Code Section 30652, all fees and fines collected by the County for providing Animal Services to the City shall be deposited into the County Treasury and shall be used to meet the County’s cost of providing Animal Services to the City.

13. Annual Fee.
a. In consideration for Services provided by the County to the City, and in addition to any fees and fines imposed on City residents, the City agrees to pay to the County the following amounts (“Annual Fee”):
i. For fiscal year 2022-2023, $7.97 for each person residing within the City limits as of January 2022. For example, if the City’s population is 50,000, the Annual Fee is $398,500.
ii. For fiscal year 2023-2024, $9.11 for each person residing within the City limits as of January 2023. For example, if the City’s population is 50,000, the Annual Fee is $455,500.
iii. For each fiscal year thereafter, the per capita rate for the Annual Fee shall be calculated using the following formula: (A) The County’s budgeted cost to provide Animal Services throughout the 7 County in that fiscal year, minus the sum of animal licensing fees and user fees projected to be received from all County residents in that fiscal year, minus the budgeted County general fund contribution for that fiscal year, divided by (B) the sum of the population of the unincorporated area plus the population of all cities for which the County provides Animal Services.

For
example, if the budgeted cost to provide Animal Services throughout the County is $12,640,000, the animal licensing and user fees projected to be received are $1,620,00, the budgeted general fund contribution is $4,112,000, and the population is 866,583, then the per capita Annual Fee would be $7.97
[($12,640,000 - $1,620,000 - $4,112,000) / 866,583]. For a City with a population of 100,000, the total Annual Fee would be $797,000.
b. The City shall pay the Annual Fee to the County in four equal quarterly installments. Each installment shall be due on the first day of each fiscal quarter (i.e., July 1, October 1, January 1, and April 1). The City shall make the payment to the County Treasurer-Tax Collector, 625 Court Street, Martinez, CA 94553.
c. The City shall pay the Annual Fee to the County regardless of the amount of any fees and fines collected by the County pursuant to Division 416.
d. Each year, the County will prepare a reconciliation report of actual costs incurred by the County to provide Animal Services during the immediately preceding year to ensure the Annual Fee paid by the City covers only actual costs incurred to provide Animal Services. The reconciliation report will be completed and sent to the City in the month of August for each fiscal year. Any cost savings for that fiscal year will be applied to the following fiscal year.
e. For purposes of calculating the Annual Fee, the County shall rely on the population figures reported by the California State Department of Finance E1 Population Estimates report as of January of each year. f. The County shall notify the City of the amount of the Annual Fee for the next fiscal year by March 1st of each year.

14. Term; Termination.
a. The term of this Agreement begins on the Effective Date and continues for two (2) years. This Agreement shall automatically renew for successive three-year periods until either party terminates this Agreement by giving the other party 90 days advance written notice of termination.
b. This Agreement shall automatically terminate if the County repeals Division 416 or if the City repeals its resolution incorporating and applying Division 416 within the City.
8 c. The County may terminate this Agreement if the City fails to pay the Annual Fee by its due date by giving the City 30-days advance written notice.
d. The County agrees to meet jointly with all contracting city agencies annually during Quarter 2 of each fiscal year (i.e., October) to discuss potential revisions or updates through the Public Managers Association.

15. Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the parties, and supersedes any prior agreement between the parties, with respect to the subject matter hereof. Any amendment to this Agreement must be in writing and approved by the Contra Costa County Board of Supervisors.

16. Governing law; Venue. This Agreement shall be governed by the laws of the State of California. Any dispute arising out of or related to this Agreement shall be brought in Contra Costa County Superior Court.

17. Notices. Any notice to be given to either of the parties in connection with this Agreement shall be sent by U.S. mail to the following address:

If to County:

Director, Animal Services
4800 Imhoff Place
Martinez, California 94553-4300

If to City:
__________________________
__________________________
__________________________
__________________________
The parties are signing this Agreement as of the Effective Date set forth above.

COUNTY CITY

By: Beth Ward By:

Title: Animal Services Director Title:

Date: Date:

ATTACHMENT B - City – County Animal Services Agreement, Hercules, July 1, 2005

CONTRA COSTA COUNTY ANIMAL

SERVICES

ANIMAL SERVICES UPDATE
JANUARY11, 2022
1 ATTACHMENT C - Hercules Animal Services Agreement Presentation, January 11, 2022 Our Department
 Field Services – Protecting public health & safety
through enforcement of the County’s Animal
Ordinance, rabies control and field patrols.
 Shelter Operations – Intake and daily care of
animals, maintenance of animals and kennels,
owner surrender support.
 Medical Services – Medical care and treatment of
animals, emergency care, low-cost spay/neuter
surgeries, low-cost vaccination and microchip
clinics, etc.
 Administration – In-house call center, licensing
programs, budget and human resources,
contract management, fleet management.
 Community Services – Adoptions program,
volunteer program, public events and humane
education.

Pinole Shelter Closure
3  In September of 2020, the Contra Costa Board of Supervisors voted to close the Pinole Animal Shelter .
 CCAS supported this decision since we have long lacked the necessary financial resources and staffing to adequately run the shelter .  The primary services utilized by West County residents at the Pinole Shelter included: adoptions, stray animal impounds and return to owner services.
 CCAS will continue to provide these services to West County residents through current practices, mobile events and strategic partnerships.  Field Services response times were not affected because our Animal Services Officers have always been dispatched from our Martinez facility.

CCAS veterinarian speaking with residents at 3/13/21 West County Microchip Clinic in Hercules
Field Services – Top Activities in Hercules
4 2021 Activity Report - Top Activities for
Hercules 2021
Stray Activities 326
Deceased Activities 94
Investigation Activities 77
Assist Activities 19
Other Activities 17
Total Activities 533

Animal Care Agency Comparisons
Municipal Shelter:

FY 20/21
Rate Per Capita
City of Antioch $15.44
City of Oakland $12.09
Sacramento County $13.10
Contra Costa County $6.79
❑Contra Costa Animal Services ranks low
on cost per capita in comparison to
other municipal shelters.
❑The City of Antioch increased their rates
for animal services by 19% in FY 2020/21,
which brought them to $15.44 per
capita.
5 Mandated Services Covered By Current Fees
6 ▪ Special Enforcement
▪Mandatory Spay/Neuter Prior to Adoption (as
required per County Ordinance)
▪Major Case Investigations (i.e. Cruelty/Abuse)
▪Animal Housing
▪ Stray & Aggressive Animal Patrols (Inc. Livestock)
▪ Impoundment of Stray Dogs, Sick/Injured/In
Danger & Aggressive Animals
▪ Sheltering/Care of Impounded Animals (Inc.

Vaccination, Food, Humane & Emergency Veterinary
Care, etc.)
▪ Housing for Animals Displaced by Disasters
▪ Return Animals Home & Adoption/Transfer of
Available Animals
▪ Rabies Control
▪ Licensing & Enforcement
▪ Bite Investigations
▪ Patrols
▪ Quarantine of Potential Rabies Suspects
▪ Rabies Testing
▪ Rabies Vaccine Clinics
▪ Dangerous/Potentially Dangerous Animals
▪ Investigations
▪ Impoundment & Sheltering
▪ Hearings
▪ Permits & Enforcement
▪ Other State & Local Laws
▪ Animal Noise Enforcement & Hearings
▪ Fulfilling PRA Requests
Additional Services Provided By CCAS
7 ▪ Low-cost Vaccine & Spay/Neuter Clinic for
Residents of Contra Costa County
▪ Humane Education & Enrichment Programs
▪ Deceased Animal Impoundment
▪ Deceased animals located on the public right of
way.
▪ Deceased domestic animals on private property.
▪ Local Agency Assists
▪ Police
▪ Fire
▪ Code Enforcement
▪ Administration
▪ Provide support for on-going operations
– budget and fiscal services, human
resources, contract management, fleet
management and information
technology
▪ In-house call center – five days a week,
Tues.-Sat. Phone, online, email and in
person by appointment
▪ Dispatch services through Contra Costa
Sheriff’s Department contract 24/7
City Agreement History
 The city service agreements were established in 1985 for mandated programs and the enforcement of all animal related laws. The original city fees were based on Department costs at that time per capita.
 In 2005, the Animal Services Department began increasing city fees based on the cities population growth and Consumer Price Index (CPI) percentage.  In 2011, the Department suspended the annual CPI increase due to the economic climate. The annual CPI increase was reinstated in 2017, though no action was taken to address the gap left by the four-year suspension of fee increases. 8 City Agreement Update Timeline
 2016 – 2019 - CCAS conducts meetings with City Managers and Police Chiefs in contract cities to discuss the need for changes to the existing city agreement, one that would be more equitable for the cities and the County alike.  January – September 2020 - The Contra Costa County Board of Supervisors approved a new agreement and an increase in city fees. Upon notification to the cities, the Public Managers Association (PMA) informed the County that the fee structure could create a financial hardship.

The County heard the concerns and advised the cities of a revised fee for FY20/21 in the amount of $6.67 per capita, dismissing the new fee structure in favor of the standard CPI increase.

The County advised the cities of service level changes that would become effective October 2020 due to lack of adequate funding, including limiting deceased animal pickups.
 May 2021 – The cities agreed to increase the Per Capita Rate by $0.12 to add an additional Utility Worker for deceased animal pickups, resulting in a total of $6.79 Per Capita for FY 2021/22.  July 2021 – The Department began hosting a series of regional meetings with the Board of Supervisors and City Managers to receive feedback on current services, needs and an updated fee structure for city agreements.  December 2021 – Cities were notified about an updated fee structure that includes a phased approach to minimize fiscal impacts, which will take effect July 1, 2022.
 January 2022 – June 2022 – CCAS staff will be meeting with city staff to finalize a new service agreement with performance metrics. 9 Updated Fee Structure
10 Phase one (1) will commence July 1, 2022, with an
estimated per capita fee of $7.97 for FY22/23. This includes the following changes in services:
• Add 1.0 FTE Field Services Sergeant for increased Animal Services Officer (ASO) beat coverage, improved response time to dangerous animal cases, improved public support, and training.
• Add 1.0 FTE Field Utility Worker to reduce response times for the pickup of deceased animals, while allowing us to resume deceased domesticated animal pick-up on private property and picking up deceased wildlife from private property per the County fee schedule for the homeowner. • Add 1 Animal Services truck for deceased animal pickups. • Add 2.0 FTE Animal Care Coordinators to enhance our life saving programs serving our County Residents, such as the Pet Retention, Transfer Partner and Adoption programs.

Phase two (2) will commence on July 1, 2023, with an
estimated per capita fee of $9.11 for FY 23/24. This
includes the following changes in services:
• Add 3.0 FTE Animal Services Officers (ASO) to expand beat coverage and further decrease priority one response times.
• Add 2 Animal Services trucks to accommodate the increased field services staff.
• Add 1.0 FTE Animal Care Coordinator to decrease length of stay for impounded animals and continue focus on pet retention program services.
• Add 1.0 FTE Medical Supervisor to increase the efficiency of our on - site low-cost spay/neuter and vaccine services for our county residents.

Updated Fee Structure FY 21/22 – FY 23/24
11 Thank You & Questions
We
appreciate
our city
partners!

Contra Costa Animal Services (CCAS) - Serving Our Community!

AGENCY SNAPSHOT
Martinez Shelter
A 38,000 sq. ft. facility to provide public
services and house animals while they
are in our care
Law Enforcement Unit
Field Service Officers that enforce state laws and
local ordinances, investigate animal bites, attacks
and crimes, and serve as our “boots on the
ground” in your city
Animal Care Unit
A medical and husbandry team to
provide basic daily care to the animals
as well as any necessary medical care
Veterinary Team
A veterinary team to support our
low-cost spay/neuter and vaccination
clinics
Administrative Unit
An administrative team that manages our call
center, dispatch services, administrative hearing
processes, and assists the public in person, online,
and by phone
Volunteer Unit
A core of more than 150 committed
volunteers that perform vital tasks in and
out of the shelter, including animal enrich-
ment, adoptions and lost/found support
ATTACHMENT D - Contra Costa Animal
Services (CCAS) - Serving Our Community!
– CCAS Serving
Public Safety Services
• Stray & Aggressive Animal Patrols (inc. Livestock)
• Animal Bite Investigations
• Quarantine of Dangerous Animals & Potential
Rabies Suspects
• Animal Cruelty Investigations
• Impoundment & Sheltering of Stray/Sick/Injured Pets
• Pet Licensing & Enforcement
• Animal Noise Enforcement
• Deceased Animal Retrieval
• Enforcement of County Dangerous Animal Laws
• Enforcement of State & Local Animal Welfare Laws
• Assisting Local Agencies (Police, Fire, etc.)
with Activity Calls
• 24/7 Dispatch Services
For more information about our services, visit ccasd.org Community Services
• Shelter & Medical Support for Lost/Sick/Injured Pets
• Pet Adoptions (Martinez Shelter)
• Lost Pet Support & Return To Owner (RTO) Services
• Shelter & Care for Animals Displaced by Disaster
• Humane Education Programs
• Public Low-Cost Spay/Neuter Clinic
• Public Low-Cost Vaccination Clinic
• Community Clinics & Adoption Events
• Community Cat Trap-Neuter-Release (TNR) Program
• Customer Service Support
• Volunteer Program

COMPASSION IN ACTION

COST FOR
ANIMAL

SERVICES

ANIMAL

SERVICES

CONTRA COSTA COUNTY
4800 Imhoff Place
Martinez CA
Ph: 925-608-8400
www.ccasd.org
Just One Click Away!
Many of our services can be accessed via our website:

• View pets available for adoption
• Report lost or found pets
• Purchase a license for your pet
• Schedule a spay/neuter appointment
• Schedule a vaccination appointment
• Sign up to become a volunteer or foster
• Donate to the Animal Benefit Fund
• File an animal noise complaint
• Report deceased animals

All this and more at ccasd.org
See Our Animals

CCAS Serving Hercules
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Dear City Manager Dante Hall,
We understand Contra Costa Animal Service has sent you a copy of their City-County Animal Services Agreement which has also been sent to the eighteen other Cities within Contra Costa County for consent.

We are writing to inform you that the City-Animal Service Agreement is written below the basic standard of care in practice by shelters across the state. The needs for each individual City, along with the humane treatment of animals and wildlife, should have been considered and included in this agreement. We respectfully ask the City to not consent to this agreement as it is written. We are requesting the 18 Cities to increase the funding for CCAS. However, a well-written humane City-County Animal Services Agreement is required outlining the CCAS services should be included as a part of the increased fees.

An independent party should review other animal service agreements and consider our recommendations. Participants from Animal Service, City representatives, rescue groups and members of the community should be consulted.

For your review, attached is the City-County Animal Services Agreement with noted areas of concern, suggested recommendations along with other Animal Services agreements to compare.

Thank you for your time,
Annie Wright
Animal Rights Coalition
PLEASE SEE ATTACHMENTS:

OUR LETTER 3-16-22

CCAS AGREEMENT WITH OUR REVISIONS

OUTSIDE ANIMAL SERVICES REFERENCES INCLUDING EXAMPLE CONTRACT From: Annie Wright <[email protected]> Sent: Thursday, March 17, 2022 8:05 AM
To: Dante Hall <[email protected]>
Subject: Fwd: CONTRA COSTA COUNTY ANIMAL SERVICES AGREEMENT MARCH 2022, TO 18 INCORPORATED CITIES: NEW FEES JULY 2022
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

2020 City Agreement Discussions
 In January of 2020, the Board of Supervisors approved the Finance Committee’s recommendation to increase city fees and the cities were notified.  During the March 2020 Public Managers Association (PMA) meeting, the County was notified that the cities were not in agreement with the proposed new fee schedule and service agreement.
 In May of 2020, CCAS advised the cities of a revised fee for service in FY20/21 as requested during the March PMA meeting. The revised fee was based on CPI of 2.5% above FY 19/20 fees of $6.38 per capita. The fees for FY 20/21 were set at $6.54 per capita.  In September of 2020, the Department advised the cities of service level changes that would become effective 10/5/20 due to the lack of appropriate funding allocations. 3 Sent on behalf of Director Beth Ward, CCC Animal Services

Dear City Manager

We would like to follow up to find a date and time to meet with you both and any other members in your team, via Zoom for our annual meeting to check in on services provided and any questions or concerns. The meeting will be scheduled for approximately 45 mins to one hour and be held in March. Please provide your availability to meet with our team.

Our focus for the meeting will be to receive your feedback on the draft service agreement and answer any questions. Alternatively, you may also use the word document that is attached to provide feedback/changes, we just ask that you use track changes in Word to help us capture your feedback. You may send your responses back prior to the meeting or share them during the meeting.

Below is a list of other potential agenda items, please let us know if you would like to touch on any of these items or if you have another item you would like placed on the agenda.

• 2021 Service check in - How are things going?
• Review of the Summary of Animal Activities and Actions for your city in 2021 • Service Survey feedback (this is only for Cities that have participated in the survey, if your city has not participated and would like to please let us know)
• Community Cats
• Public Spay and Neuter Vaccine Clinic update
• Explore opportunities to provide remote services in your city (ie: vaccines, microchips, adoptions, licensing and possible spay/neuter)

Please l et me know if you have any questions.

Best regards,

Beth Ward, Director of Animal Services Contra Costa
County Animal Services 4800 Imhoff Place
Martinez, CA 94553
(925) 608-8470
www.ccasd.org www.facebook.com/ccasd

CITY-COUNTY ANIMAL SERVICES AGREEMENT

The County of Contra Costa, a political subdivision of the State of California ("County"), and the City of ________ , a municipal corporation in the County ("City"), enter into this City-County Animal Services Agreement ("Agreement") effective as of _______ ("Effective Date").

1. Authority. The City has adopted by reference Division 416 of the Contra Costa County Ordinance Code (hereafter "Division 416") governing animals. Division 416 establishes requirements and procedures for animal control by the County's Animal Services Department. This Agreement is entered into to memorialize the County's provision of Animal Services and enforcement of Division 416 within the City as provided in Section 416-4.208, and as authorized by California Government Code section 51301.

2. Enforcement Duties and Personnel. The County will enforce Division 416 within the City's boundaries. The City hereby designates and appoints the County's Animal Services Director and his or her staff as public officers of the City for the purposes of this Agreement and enforcing and carrying out its provisions.

3. Scope of Services.
a. In addition to enforcing Division 416, the County will provide to the City the Field Services, Shelter Services l and Deceased Animal Services described in this Agreement (collectively, "Animal Services") in the manner provided for in this Agreement. During periods of emergency (such as fire, earthquake, flooding, pandemic), it might not be possible to provide the Animal Services to the same extent and within the same time frames as during non-emergency times.
b. Calls made to the County for services that are not provided by the County pursuant to this Agreement will be referred back to the City in which the call was requested. In such a case, the City is responsible for determining the next appropriate action. c. The County will provide Animal Services within the City's boundaries in accordance with all applicable federal, state, and local laws, including the Ordinance Code.

4. Definitions.
a. "Critically Sick or Injured Animals" means those animals that have life- threatening conditions.
b. "Emergency Calls" means complaints of animal bites, potential rabies exposure, or attacks on humans or domestic animals that are in progress, or, when a bite or attack has occurred, where the animal remains an immediate threat to humans. c. "Livestock" means a large domesticated agricultural animal, such as a cow, bull, steer, horse, sheep, or other large agricultural animal. a. "Regular Field Services hou rs" means between 8:00 am and 9:00 pm each day of the week, including Saturdays and Sundays.

2. Field Services. The County will provide the following services (collectively, "Field Services") within the City upon a request from a City resident or person within the boundaries of the City.
a. Pick up and attempt to return to their owners domesticated animals that are found "at large," to the extent possible without impoundment by relying on the animal's identification, including dogs, trapped, injured, or sick cats, and other small, domesticated animals, including rabbits, chickens, turkey, geese, and ducks, but excluding wildlife, such as mountain lions, opossums, wild turkeys, raccoons, skunks or squirrels unless a rabies exposure has occurred.
b. Investigate complaints of animal bites, rabies exposure and attacks to humans or domestic animals, including documenting the incident, interviewing witnesses, quarantining animals, preparing and transporting animals for rabies testing, and investigating any alleged violations of a quarantine order. c. Enforce provisions governing potentially dangerous and dangerous animals, including but not limited to investigating complaints, designating animals, impounding animals, conducting hearings, and issuing permits for animals designated dangerous or potentially dangerous.
d. Enforce provisions governing barking dogs and other noisy animals, including but not limited to conducting hearings.
e. Respond during regular business hours to police or fire department calls for assistance regarding animal-related issues. The County may provide after-hours warrant support to the City with advance notice, if County Animal Services personnel are available and willing to volunteer for the assignment, and provided the City pays additional fees sufficient to cover the County's actual costs. f. Investigate, cite, impound, and seek resolution of complaints regarding potential mistreatment of domestic animals by their owners.

3. Response Times for Field Services.
a. The County will attempt to respond to requests for Field Services during the hours and within the times specified in this section. The County shall maintain records of its response times to calls for Field Services.
i. Priority 1 calls are Emergency Calls, which are calls for assistance from police or fire personnel and calls regarding rabies exposure, dangerous animals, and Critically Sick or Injured Animals.

1. The County will respond to Priority 1 calls between 8:00 AM and 9:00 PM, seven (7) days per week, including holidays.

For ninety-five percent (90%) of responses to Priority 1 calls, County personnel will attempt to arrive on the scene within two (2) hours from the time when the call for service is received by County staff. i. Priority 2 calls are calls to pick up animals that were at large but have since been confined at a location within the County, and calls regarding urgent, animal-related requests for assistance not involving Critically Sick or Injured Animals.

1. The County will respond to Priority 2 calls during regular Field Services hours.

3. The County will respond to Priority 2 calls received outside of regular Field Services hours no later than 7:00 pm on the next day that is not a County holiday.

4. The County may respond to Priority 2 calls by taking a report by phone or by contacting parties and witnesses at the scene.
ii. Priority 3 calls are all other calls, such as calls regarding animals at large, animals causing a nuisance, and dead animals.

1. The County will respond to Priority 3 calls during regular Field Services hours.

3. The County will respond to calls received outside of regular Field Services hours on the next day that is not a County holiday.

4. The County will respond to Priority 3 calls only after the County has responded to all then-outstanding Priority 1 and Priority 2 calls.

5. The County may respond to Priority 3 calls by taking a report by phone or by contacting parties and witnesses at the scene.

2. Shelter Services.
a. The County will provide the following services to City residents ("Shelter Services"):
i. Impound and shelter lost or stray dogs, injured/sick, lost or endangered community cats, and other small, domesticated
animals that are brought to the shelter by County staff, residents of the County or cities that have contracts with the County for the provision of Animal Services.

A community cat is considered endangered if it is in imminent risk of being killed, poisoned, or injured but not if, due to being at large, it is at risk of starvation, being attacked by another animal, or hit by an automobile. Orphaned kittens that cannot survive without human intervention are also considered endangered. ii Impound and quarantine biting animals.
iii. Provide rabies testing of animals suspected of infection. iv. Provide for reclamation of abandoned, lost or stray domestic animals. v. Provide onsite services to the public at the County's Martinez shelter for the following: search for lost animals, reclaim animals, adopt animals, answer inquiries regarding animals, accept complaints regarding animals, provide vaccines and spay/neuter services for a small fee, conduct humane education programs, and license animals onsite or online.
vi. Provide care for sheltered animals.
vii. Provide services as required by the California Penal Code Section 597.1 and other laws governing shelters for animal care, treatment, holding periods, placements, and dispositions.
a. M edical Services. As part of the Shelter Services, the County will provide the following medical services ("Medical Services"):
i. The County will provide veterinarian services twenty-four (24) hours per day through partnerships with emergency vets to treat injured or sick impounded animals.
ii. If an animal's condition requires immediate treatment outside of the County shelter's regular business hours or when no veterinarian is on staff at the County's shelter, then County Animal Services Department officers or Good Samaritans may take the animal to any emergency veterinarian clinic/hospital that is under contract with the County to provide emergency veterinary services (as posted on the County shelter's doors and on the County's Animal Services Department's website).
iii. The County will monitor animals on a rabies virus quarantine. iv. The County will conduct a minimum of one vaccine clinic per month and maintain a spay and neuter clinic in Martinez, which for a fee paid by the animal's owner will provide vaccine and spay/neuter services for County residents' dogs and cats. The fee will be approved by the County Board of Supervisors and published on the County Animal Services Department fee schedule.

Provide rabies control information free of charge to the public. v. T he County will provide emergency veterinary services in accordance with Section 597(f) of the California Penal Code.
a. Shelter Services Hours
i. The Martinez shelter will be open to the public for a minimum of 30 hours per week, 5 days per week, 6 hours per day, including one weekend day each week except during weeks that are shortened by a County holiday. ii. The Martinez Shelter will be closed on designated County holidays and one day per year dedicated to in-house staff training.

2. Deceased Animal Services. The County will provide the following services within the City in response to calls regarding deceased animals during regular Field Services hours:
a. Pick up deceased domestic animals, wildlife, and livestock from public property. b. With property owners' consent, p ick up deceased domestic or wild animals from private property for a fee paid directly to the County Animal Services Department by the property owner or reporting party.
c. Identify and notify the owner of deceased animals, whenever possible. d. Dispose of the body of any deceased animal picked up by the County.

3. Excluded Services. The County will not provide the following services to the City under this Agreement:
a. Respond to requests for removal of live or deceased marine animals and disposal of deceased marine animals.
b. Pick up and transport wildlife, including baby birds. c. Pick up live animals for surrender. The County may, at its discretion, accept live animals belonging to County residents for surrender at the Martinez shelter and charge a fee to the animal owner or property owner as part of its regular operations. d. Respond to pest control issues (i.e., infestations, perceived or real, of squirrels, rats, mice, insects, gophers, wasps, bees, spiders, or other pests). e. Respond to calls regarding live mountain lions, coyotes, wild turkeys, wild pigs, peacocks, or other wildlife. The County will refer calls regarding live wildlife to the California Department of Fish and Wildlife.

4. Performance and Activity Reports. The County will deliver to the City within 14 days of the end of each quarter, an Animal Control and Results Report summarizing Animal Services provided by the County to the City during the previous quarter and including year-to-date data. This report will include the following information:

5. The total number of calls for service received by the County under this Agreement, identified by type of service and Priority level.
a. A response time report identifying response times by Priority level. b. The outcomes for animals impounded, i dentified by City/County jurisdiction. c. The number of calls for service received from City residents or persons within the City's boundaries.
d. A listing of dogs registered to City residents identified as potentially dangerous or dangerous (PDA/DA) that have a valid County-issued PDA/DA permit.

2. Fees and Fines. Pursuant to Food and Agricultural Code Section 30652, all fees and fines collected by the County for providing Animal Services to the City shall be deposited into the County Treasury and shall be used to meet the County's cost of providing Animal Services to the City.

3. Annual Fee.
a. In consideration for Services provided by the County to the City, and in addition to any fees and fines imposed on City residents, the City agrees to pay to the County the following amounts ("Annual Fee"):
i. For fiscal year 2022-2023, $7.97 for each person residing within the City limits as of January 2022. For example, if the City's population is 50,000, the Annual Fee is $398,500.
ii. For fiscal year 2023-2024, $9.11 for each person residing within the City limits as of January 2023. For example, if the City's population is 50,000, the Annual Fee is $455,500.
iii. For each fiscal year thereafter, the per capita rate for the Annual Fee shall be calculated using the following formula: (A) The County's budgeted cost to provide Animal Services throughout the County in that fiscal year, minus the sum of animal licensing fees and user fees projected to be received from all County residents in that fiscal year, minus the budgeted County general fund contribution for that fiscal year, divided by (B) the sum of the population of the unincorporated area plus the population of all cities for which the County provides Animal Services. For example, if the budgeted cost to provide Animal Services throughout the County is $12,640,000, the animal licensing and user fees projected to be received are $1,620,00, the budgeted general fund contribution is $4,112,000, and the population is 866,583, then the per capita Annual Fee would be $7.97 [($12,640,000 - $1,620,000 -
$4, 112,000) / 866,583]. For a City with a population of 100,000, the total Annual Fee would be $797,000.

a. The City shall pay the Annual Fee to the County in four equal quarterly installments.

Each i nstallment shall be due on the first day of each fiscal quarter (i.e., July 1, October 1, January 1, and April 1). The City shall make the payment to the County Treasurer -Tax Collector, 625 Court Street, Martinez, CA 94553.
a. The City shall pay the Annual Fee to the County regardless of the amount of any fees and fines collected by the County pursuant to Division 416. b. Each year, the County will prepare a reconciliation report of actual costs incurred by the County to provide Animal Services during the immediately preceding year to ensure the Annual Fee paid by the City covers only actual costs incurred to provide Animal Services. The reconciliation report will be completed and sent to the City in July of each year.
c. For purposes of calculating the Annual Fee, the County shall rely on the population figures reported by the California State Department of Finance as of January of each year.
d. The County shall notify the City of the amount of the Annual Fee for the next fiscal year by March 1st of each year.

2. Term; Termination.
a. The term of this Agreement begins on the Effective Date and continues for two (2) years. This Agreement shall automatically renew for successive three-year periods until either party terminates this Agreement by giving the other party 90 days advance written notice of termination.
b. This Agreement shall automatically terminate if the County repeals Division 416 or if the City repeals its resolution incorporating and applying Division 416 within the City.
c. The County may terminate this Agreement if the City fails to pay the Annual Fee by its due date by giving the City 30 days advance written notice.

3. Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the parties, and supersedes any prior agreement between the parties, with respect to the subject matter hereof. Any amendment to this Agreement must be in writing and approved by the Contra Costa County Board of Supervisors.

4. Governing law; Venue. This Agreement shall be governed by the laws of the State of California. Any dispute arising out of or related to this Agreement shall be brought in Contra Costa County Superior Court.

5. Notices. Any notice to be given to either of the parties in connection with this Agreement shall be sent by U.S. mail to the following address:

7 If to County:

Director, Animal Services 4800 Imhoff
Place
Martinez, California 94553-4300 If to City:

The parties are signing this Agreement as of the Effective Date set forth above. COUNTY CITY

By: Beth Ward By: ---------- -
Title: Animal Services Director Title: ----------
Date: ---------- Date: ----------

What are we asking?
We are asking all 18 cities to not consent to the new CCAS agreement. We request the 18 Cities to increase the funding for CCAS. However, along with the additional funding, a well-written humane City-County agreement is required outlining the services and reinstated services. City representatives, rescue groups and community members need to be involved creating a new agreement.

Contra Costa has the ninth highest population in California. We live in a county with diverse communities along with different geographic areas and open spaces. The needs for each individual City along with the humane treatment of animals and wildlife, should be considered in this agreement.

A fair and humane Animal Service - City Agreement should be created. An independent party should review other animal service agreements and consider our recommendations. Participants from Animal Service, City representatives, rescue groups and members of the community should be consulted.

September 2020, CCAS Eliminated Services
Beth Ward, Animal Service Director informed all 18 cities these countywide services are being removed due to budget issues. This agreement increases cities fees and CCAS budget, however the services below will not be reinstated as promised by Beth Ward.
a. The number of officers allocated to Field Services decreased from 16 to ten. b. CCAS’s Field Services reduced its operating hours.
c. On-call coverage was eliminated.
d. Deceased wild animal retrieval on private property was stopped. e. All live wildlife calls were referred to the California Department of Fish and Wildlife. f. Eliminated the transfer of injured Wildlife to Lindsay Wildlife Hospital.

December 20, 2021 CCAS letter to the Cities.

This letter outlined the Field and Shelter Service additional staffing with an estimated per capita fee of $7.97 for FY22/23. The phase two (2) staffing with an estimated per capita fee of $9.11 for FY 23/24. However, this agreement does not outline any of these positions, minimum staffing levels or program services such as the Pet Retention, Transfer Partner and Adoption programs that were outlined in this letter.

Below some recommendations to be considered in a City-Country Animal Service Agreement

Policies and Procedures

A. All policies and procedures shall be developed with the goal of animal welfare, enhancing the cost efficiency and quality of services provided to the County and Participating Cities, and to reflect best practices in the industry for animal control and care. Annually submitted to a committee of County and Participating City representatives, with committee members to be designated by the County Manager or designee. Animal Services and committee members will work in good faith to resolve any differences or concerns regarding policies and procedures.

B. CCAS must establish comprehensive written policies and procedures for proper care and handling of animals.

C. Such policies and procedures shall address all subjects encompassed by the scope of this Agreement, including shelter, veterinary care, and field services. Proper care includes but is not limited to, appropriate food and water, regular cleaning of kennels and cages, humane handling, veterinary care and a vaccination schedule including rabies vaccinations.

D. Animal Services shall establish policies and procedures in accordance with the Guidelines for Standards of Care in Animal Shelters published by the Association of Shelter Veterinarians, ASPCA, the Humane Society of the United States, and/or other currently accepted best practices for animal sheltering. Policies and Procedures shall focus on these areas:

1. Medical Health and Physical Well-Being

2. Euthanasia

3. Environment

4. Sanitary Kennels/Cages

5. Behavioral Health

E. Animal Services shall have written policies and procedures on animal placement with a goal of ensuring that non-aggressive and healthy or treatable animals that enter the County Shelter are not euthanized through redemptions, adoptions and transfers to other organizations. Policies and procedures should include guidelines for euthanasia.

Joint City-County Collaboration Committee.

A committee composed of three county representatives (appointed by the County) and one representative from each City that chooses to appoint a representative shall meet upon reasonable request of the City or the County, but in no event shall the Committee meet less than twice each year.

Committee members may not be elected officials. The County will engage in good faith with the Joint City-County Collaboration Committee to develop potential adjustments to field protocols.

The Committee shall review service, revenue and cost issues and make recommendations regarding efficiencies and improvements to services and revenues, and shall review and make recommendations regarding the conduct and findings of the collaborative initiatives. Subcommittees to focus on individual initiatives may be formed, each of which shall include membership from both County and City members of the Joint City-County Collaboration Committee.

Recommendations of the Joint City-County Collaboration Committee are nonbinding.

Amendments Clause.

Any amendments to this Agreement must be in writing. This Agreement shall be deemed to incorporate amendments to Agreements between the Parties that are approved by the County and at least two thirds (66%) of all other Parties evidenced by the authorized signatures of such approving.

Grants.

Both Parties shall cooperate and assist each other in procuring grants or financial assistance from governmental agencies or private benefactors for reduction of costs of operating and maintaining the Animal Services Program and the care and treatment of animals in the Program.

Shelter Renovations.

No major renovation, upgrades or replacements of the Shelter established as a capital project within the County Budget without prior agreement with the eighteen Cities. No capital project costs be allocated to the Cities during the term of this Agreement without prior agreement from the Cities.

Shelter Services
This agreement does not outline critical shelter services. Reducing the number of animals euthanized in a community’s public shelter requires a multi-faceted approach. The following components are essential:
• Spay/neuter program
• Public education program
• Adoption program
• Successful Foster Care System
• Coordinated transfer to rescues
• Animal redemption program that reduces the number of animals returned to the shelter.

The most effective way to lower the euthanasia rate of companion animals is synonymous with the most effective way of reducing long-term public expenditures on Animal Control – namely initiate a community-wide spay/neuter program and thus reduce the number of unwanted animals. Enhanced adoption programs will help increase the adoption rate.

2018 Regional Animal Services
Interlocal Agreement
This AGREEMENT is made and entered into effective as of this 1st day of January, 2018, by and between KING COUNTY, a Washington municipal corporation and legal subdivision of the State of Washington (the "County") and the City of Shoreline, a Washington municipal corporation (the "City").

WHEREAS, the provision of animal control, sheltering and licensing services protects public health and safety and promotes animal welfare; and WHEREAS, providing such services on a regional basis allows for enhanced coordination and tracking of regional public and animal health issues, consistency of regulatory approach across jurisdictional boundaries, economies of scale, and ease of access for the public; and
WHEREAS, the Contracting Cities are partners in making regional animal services work effectively, and are customers of the Animal Services Program provided by the County; and
WHEREAS, the City and the County are parties to an Animal Services Interlocal Agreement for 2013 through 2015 which, as extended, will terminate on December 31, 2017 (the "2013 Agreement"); and
WHEREAS, nothing in this Agreement is intended to alter the provision of service or manner and timing of compensation and reconciliation specified in the 2013 Agreement for services provided through December 31, 2017; and
WHEREAS, the City pursuant to the Interlocal Cooperation Act (RCW Chapter

39.34) , is authorized and desires to contract with the County for the performance of Animal Services; and
WHEREAS, the County is authorized by the Interlocal Cooperation Act, Section 120 of the King County Charter and King County Code 11.02.030 to render such services and is willing to render such services on the terms and conditions hereinafter set forth; and NOW THEREFORE, in consideration of the promises, covenants and agreements contained in this Agreement, the parties agree as follows:

Document Dated 6-28-17 1

1. Definitions. Unless the context clearly shows another usage is intended, the following terms shall have these meanings in this Agreement:
a. "Agreement" means this 2018 Animal Services Interlocal Agreement, including any and all Exhibits hereto. Unless the context clearly indicates otherwise, the term "Agreement" is intended to reference all 2018 Animal Services Interlocal Agreements by and between the County and other Contracting Cities.
b. "Animal Services" means Control Services, Shelter Services and Licensing Services combined, as these services are described in Exhibit A.

Collectively, "Animal Services" are sometimes referred to herein as the "Program."
c. "Contracting Cities" means all cities, including Latecomer Cities, that are parties to an Agreement.
d. "Contracting Parties" means all Contracting Cities and the County. e. "Control District" means one of the three geographic areas delineated in Exhibit B for the provision of Animal Control Services. f. "Enhanced Control Services" are additional Control Services that the City may purchase under certain terms and conditions as described in Exhibit E (the "Enhanced Control Services Contract").
g. "Enhanced Licensing Support Services" are additional Licensing Support Services that the City may purchase under certain terms and conditions as described in Exhibit F ("Enhanced Licensing Support Services — Terms of Service")
h. "Latecomer City" means a city receiving animal services under an agreement with the County executed after January, 2018, per the conditions of Section 5.
i. "Parties" means the City and the County.

Document Dated 6-28-17 2
j. "Service Year" means the calendar year in which Animal Services are or were provided pursuant to this Agreement.

2. Services Provided. Beginning January 1, 2018, the County will provide the City with Animal Services described in Exhibit A. The County will perform these services on behalf of the City, consistent with governing City ordinances adopted in accordance with Section 3. In providing such Animal Services consistent with Exhibit A, the County will engage in good faith with the Joint City-County Collaboration Committee to develop potential adjustments to field protocols; provided that, the County shall have sole discretion as to the staffing assigned to receive and dispatch calls and the manner of handling and responding to calls for Animal Service. Except as set forth in Section 10 (Indemnification and Hold Harmless), services to be provided by the County pursuant to this Agreement do not include services of legal counsel, which shall be provided by the City at its own expense.
a. Enhanced Control Services. The City may request Enhanced Control Services by completing and submitting Exhibit E to the County. Enhanced Services will be provided subject to the terms and conditions described in Exhibit E, including but not limited to a determination by the County that it has the capacity to provide such services.

3. City Obligations.
a. Animal Regulatory Codes Adopted. To the extent it has not already done so, the City shall promptly enact an ordinance or resolution that includes license, fee, penalty, enforcement, appeal, impound/ redemption and sheltering provisions that are substantially the same as those of Title 11 King County Code as now in effect or hereafter amended (hereinafter "the City Ordinance"). The City shall advise the County of any City animal care and control provisions that differ from those of the County and of any amendments to the City Ordinance adopted subsequent to the effective date of this Agreement.
b. Authorization to Act on Behalf of City. Beginning January 1, 2018, the City authorizes the County to act on its behalf in undertaking the following:
i. Determining eligibility for and issuing licenses under the terms of the City Ordinance, subject to the conditions set forth in such laws.

Document Dated 6-2847 3
ii. Enforcing the terms of the City Ordinance, including the power to issue enforcement notices and orders and to deny, suspend or revoke licenses issued thereunder.
iii. Conducting administrative appeals of those County licensing determinations made and enforcement actions taken on behalf of the City. Such appeals shall be conducted by the King County Hearing Examiner or the County's successor administrative appeals body or officer on behalf of the City unless either the City or the County determines that the particular matter should be heard by the City. iv. Nothing in this Agreement is intended to divest the City of authority to independently undertake such enforcement actions as it deems appropriate to respond to violations of any City ordinances:
c. Cooperation and Licensing Support. The City will assist the County in its efforts to inform City residents regarding animal codes and regulations and licensing requirements and will promote the licensing of pets by City residents through various means as the City shall reasonably determine, including but not limited to offering the sale of pet licenses at City Hall, mailing information to residents (using existing City communication mechanisms such as bill inserts or community newsletters) and posting a weblink to the County's animal licensing program on the City's official website. The City will provide to the County accurate and timely records regarding all pet license sales processed by the City. All proceeds of such sales shall be remitted to the County by the City on a monthly basis (no later than fifteen (15) calendar days from the end of each calendar month) or more frequently.

4. Term. This Agreement will take effect on January 1, 2018 and, unless extended pursuant to subparagraphs 4a or 4b, shall remain in effect until December 31, 2022. a. Automatic Extension. The Agreement shall automatically continue for a second five year term, until December 31, 2027, unless one or more of the Contracting Parties provide written notice by June 30, 2021, of their intent to opt out of a second term. Notice from contracting cities is to be provided in writing to the County, who will subsequently inform the other city partners, in writing, within 14 days of the County receiving the written notification.

Document Dated 6-28-17 4
b. Contingent Extension. If one or more Contracting Cities provides written notice to the County of its intent to opt out of a second term, the Agreement shall continue for a second five-year term, until December 31, 2027, if:
(i) the cost to any remaining party is not estimated to increase by more than ten percent, based on the Estimated Animal Services Cost Allocation to the City (the cost allocation before revenue and credit off-sets) as noted in the Estimated Payment Calculation that includes the non-renewing party, compared to the Estimated Animal Services Cost Allocation to the City in the Estimated Payment Calculation that excludes the non-renewing City; and
(ii) no later than March 1,.2022, the remaining Parties agree in writing upon terms that substantially carry forward the cost and service levels in the initial term. If the Parties do not reach agreement on such revised terms by March 1, 2022, the automatic extension is not effective, and this Agreement shall terminate at the end of the initial term.
c. Date References. For purposes of construing date specific rights and responsibilities of the Parties upon extension of this Agreement for a second term, references in this Agreement to an initial term date shall mean a date that is five years later. This subsection is not intended to authorize more than one five-year extension period.
d. Termination. Any Contracting Party may, without cause and in its sole discretion, determine not to renew this Agreement for a second term by providing written notice of its decision to the other parties no later June 30, 2021. The Agreement may not be terminated for convenience during either the first or second term. Notice from contracting cities is to be provided in writing to the County, who will subsequently inform the other city partners, in writing, within 14 days of the County receiving the written notification.

5. Latecomers. The County may sign an agreement with additional cities for provision of animal services prior to the termination or expiration of this Agreement, but only if the later agreement will not cause either a decrease in the level of services provided to the Cities by the County or an increase in the costs payable by the Cities to the County under this Agreement. Cities that are party to such agreements are referred to herein as "Latecomer Cities." Document Dated 6-28-17 5

6. Compensation. The County will develop an Estimated Payment calculation for each Service Year using the formulas described in Exhibit C, and shall transmit the payment information to the City according to the schedule deScribed below. The County will also calculate and inform the City as to the Reconciliation Adjustment Amount on or before June 30 of each year, as described in Section 7 below and Exhibit D, in order to reconcile the Estimated Payments made by the City in the prior Service Year. The City will pay the Estimated Payment, and any applicable Reconciliation Adjustment Amounts as follows (a list of payment-related notices and dates is included at Exhibit C-7):
a. Service Year 2018: The County will provide the City with a calculation of the Estimated Payment amounts for Service Year 2018 on or before December 15, 2017, which shall be derived from the Estimated 2018 Payment Amount set forth on Exhibit C-1, adjusted if necessary based on the Contracting Cities and other updates to Calendar Year data in Exhibit C-2. The City will pay the County the Estimated Payment Amounts for Service Year 2018 on or before August 15, 2018. The Reconciliation Adjustment Amount for Service Year 2018 shall be paid by the City, or by the County if the calculation shows the City is entitled to receive a payment from the County, on or before August 15, 2019, as described in this section. b. Service Years after 2018.
i. Estimated Payment Determined by December 15. The Estimated Payment amounts for the upcoming Service Year will be determined by the County following adoption of the County's budget and applying the formulas in Exhibit C.
ii. Estimated Payments Due August 15. The City will pay the County the Estimated Payment Amount on or before each August 15.
iii. The Reconciliation Adjustment Amount for the prior Service Year shall be paid on or before August 15 of the following calendar year, as described in Section 7.
iv. If a Party fails to pay an Estimated Payment or Reconciliation Adjustment Amount within 15 days of the date owed, the Party owed shall notify the owing Party that they have ten (10) days to cure non- Document Dated 6-28-17 6
payment. If the Party fails to cure its nonpayment within this time period following notice, the amount owed shall accrue interest thereon at the rate of 1% per month from and after the original due date and, if the nonpaying Party is the City, the County at its sole discretion may withhold provision of Animal Services to the City until all outstanding amounts are paid. If the nonpaying Party is the County, the City may withhold future Estimated Payments until all outstanding amounts are paid. Each Party may examine the other's books and records to verify charges.
v. Unless the Parties otherwise direct, payments shall be submitted to the addresses noted at Section 15.g.
c. Payment Obligation Survives Expiration or Termination of Agreement.

The obligation of the City (or as applicable, the County), to pay an Estimated Payment Amount or Reconciliation Adjustment Amount for a Service Year included in the term of this Agreement shall survive the Expiration or Termination of this Agreement. For example, if this Agreement terminates on December 31, 2022, the Estimated 2022 Payment is nevertheless due on or before August 15, 2022, and the Reconciliation Adjustment Amount shall be payable on or before August 15, 2023. d. The Parties agree the payment and reconciliation formulas in this Agreement (including all Exhibits) are fair and reasonable.

7. Reconciliation of Estimated Payments and Revenues.
a. In order that the Contracting Parties share costs of the regional Animal Services Program based on their actual, rather than estimated, licensing revenues, there will be an annual reconciliation. Specifically, on or before June 30 of each year, the County will reconcile amounts owed under this Agreement for the prior Service Year by comparing each Contracting Party's Estimated Payments to the amount derived in Exhibit C using actual revenue data for such Service Period as detailed in Exhibit D. There will also be an adjustment if necessary to account for annexations of areas with a population of 2,500 or more and for changes in relative population shares of Contracting Parties' attributable to Latecomer Cities. The County will provide the results of the reconciliation to all Contracting Parties in writing on or before June 30. The Reconciliation Adjustment Amount will be paid on Document Dated 6-28-17 7
or before August 15 of the then current year, regardless of the prior termination of the Agreement as per Section 5.c.
b. The Parties intend that the provision of Animal Services becomes more financially sustainable over the term of this Agreement.. The County will develop proposals designed to support this goal. The County will consult with the Joint City-County Collaboration Committee on any proposals to generate new revenue.
c. The Parties do not intend for the provision of Animal Services or receipt of such Services under this Agreement to be a profit -making enterprise. Where a Contracting Party receives revenues in excess of its costs under this Agreement (including costs of PAWS (or other animal services provider,) shelter service, Enhanced Control Service, and Enhanced Licensing Support Services, if applicable), they will be reinvested in the Program to reduce the County's costs of the system that are not included in the allocation to cities and to improve service delivery.

8. Enhanced Licensing Support Services
a. A City may request Enhanced Licensing Support Services from the County during the term of this Agreement by executing Attachment A to Exhibit F.

The terms and conditions under which such Enhanced Licensing Support Services will be provided are further described at Exhibit F. Provision of Enhanced Licensing Support Services during the term of this agreement is subject to the County determining it has capacity to provide such services.

Provision of Enhanced Licensing Support Services is further subject to the Parties executing an Enhanced Licensing Support Services Agreement and Acknowledgement Form (Exhibit F, Attachment A).
b. In addition to other terms described in Exhibit F, receipt of Enhanced Licensing Support Services is subject to the recipient City providing in-kind services, including but not limited to: assisting in communication with City residents; publicizing any canvassing efforts the Parties have agreed should be implemented; assisting in the recruitment of canvassing staff, if applicable; and providing information to the County to assist in targeting its canvassing activities, if applicable.

Document Dated 6-28-17 8
c. The County has the option to implement Enhanced Licensing Support Services for cities receiving transition and shelter credits.

9. Mutual Covenants/Independent Contractor. The Parties understand and agree that the County is acting hereunder as an independent contractor and that:
a. Control of County personnel, standards of performance, discipline, and all other aspects of performance shall be governed entirely by the County; b. All County persons rendering service hereunder shall be for all purposes employees of the County, although they may from time to time act as commissioned officers of the City;
c. The County contact person for the City regarding all issues arising under this Agreement, including but not limited to citizen complaints, service requests and general information on animal control services is the Manager of Regional Animal Services.

10. Indemnification and Hold Harmless.
a. City Held Harmless. The County shall indemnify and hold harmless the City and its officers, agents, and employees, or any of them from any and all claims, actions, suits, liability, loss, costs, expenses, and damages of any nature whatsoever, by any reason of or arising out of any negligent act or omission of the County, its officers, agents, and employees, or any of them relating to or arising out of performing services pursuant to this Agreement.

In the event that any such suit based upon such a claim, action, loss, or damages is brought against the City, the County shall defend the same at its sole cost and expense; provided that the City reserves the right to participate in said suit if any principle of governmental or public law is involved; and if final judgment in said suit be rendered against the City, and its officers, agents, and employees, or any of them, or jointly against the City and the County and their respective officers, agents, and employees, or any of them, the County shall satisfy the same.
b. County Held Harmless. The City shall indemnify and hold harmless the County and its officers, agents, and employees, or any of them from any and all claims, actions, suits, liability, loss, costs, expenses, and damages of any nature whatsoever, by any reason of or arising out of any negligent act or omission of the City, its officers, agents, and employees, or any of them relating to or arising out of performing services pursuant to this Agreement.

In the event that any suit based upon such a claim, action, loss, or damages Document Dated 6-28-17 9
is brought against the County; the City shall defend the same at its sole cost and expense; provided that the County reserves the right to participate in said suit if any principle of governmental or public law is involved; and if final judgment be rendered against the County, and its officers, agents, and employees, or any of them, or jointly against the County and the City and their respective officers, agents, and employees, or any of them, the City shall satisfy the same.
c. Liability Related to City Ordinances, Policies, Rules and Regulations. In executing this Agreement, the County does not assume liability or responsibility for or in any way release the City from any liability or responsibility that arises in whole or in part as a result of the application of City ordinances, policies, rules or regulations that are either in place at the time this Agreement takes effect or differ from those of the County; or that arise in whole or in part based upon any failure of the City to comply with applicable adoption requirements or procedures. If any cause, claim, suit, action or administrative proceeding is commenced in which the enforceability and/or validity of any such City ordinance, policy, rule or regulation is at issue, the City shall defend the same at its sole expense and, if judgment is entered or damages are awarded against the City, the County, or both, the City shall satisfy the same, including all chargeable costs and reasonable attorney's fees.
d. Waiver Under Washington Industrial Insurance Act. The foregoing indemnity is specifically intended to constitute a waiver of each party's immunity under Washington's Industrial Insurance Act, Chapter 51 RCW, as respects the other party only, and only to the extent necessary to provide the indemnified party with a full and complete indemnity of claims made by the indemnitor's employees. The parties acknowledge that these provisions were specifically negotiated and agreed upon by them.

11. Dispute Resolution. Whenever any dispute arising among any of the Parties to this Agreement is not resolved by routine meetings or communications, the disputing Parties agree to seek resolution of such dispute in good faith by meeting, as soon as feasible. The meeting shall include the Chief Executive Officer (or his/her designee) of each party involved in the dispute and the Manager of the Regional Animal Services Program. If the parties do not come to an agreement on the dispute, any party may pursue mediation through a process to be mutually agreed to in good faith by the parties within 30 days, which may include binding or nonbinding decisions or recommendations. The mediator(s) shall be individuals skilled in the legal and business aspects of the subject matter of this Agreement.

Document Dated 6-28-17 10
The parties to the dispute shall share equally the costs of mediation and assume their own costs.

12. Joint City-County Collaboration Committee. A committee composed of 3 county representatives (appointed by the County) and one representative from each Contracting City that chooses to appoint a representative shall meet upon reasonable request of a Contracting City or the County, but in no event shall the Committee meet less than twice each year. Committee members may not be elected officials. The Committee shall review service, revenue and cost issues and make recommendations regarding efficiencies and improvements to services and revenues, and shall review and make recommendations regarding the conduct and findings of the collaborative initiatives. Subcommittees to focus on individual initiatives may be formed, each of which shall include membership from both County and City members of the Joint City-County Collaboration Committee.

Recommendations of the Joint City-County Collaboration Committee are non- binding. The collaborative initiatives to be explored include, but are not necessarily limited to:
a. Services provided (as described in Section 2 of this agreement); Control Services; Shelter Services and Licensing Services;
b. RASKC Revenues and Costs, including any future proposals for significant revenues to support RASKC.

13. Reporting. The County will provide the City with an electronic report not less than monthly summarizing call response and Program usage data for each of the Contracting Cities and the County and the Animal Services Program. The formatting, content and details of the report will be developed in consultation with the Joint City-County Collaboration Committee.

14. Amendments. Any amendments to this Agreement must be in writing. This Agreement shall be deemed to incorporate amendments to Agreements between the Contracting Parties that are approved by the County and at least two thirds (66%) of all other Contracting Parties (in both number and in the percentage of the prior total Estimated Payments owing from such Contracting Parties in the then current Service Year), evidenced by the authorized signatures of such approving Parties as of the effective date of the amendment; provided that this provision shall not apply to any amendment to this Agreement affecting the Party contribution responsibilities, hold harmless and indemnification requirements, provisions regarding duration, termination or withdrawal, or the conditions of this Section.

Document Dated 6-28-17 1I

15. General Provisions.
a. Other Facilities. The County reserves the right to contract with other shelter service providers for housing animals received from within the City or from City residents, whose levels of service meet or exceed those at the County shelter for purposes of addressing shelter overcrowding or developing other means to enhance the effectiveness, efficiency or capacity of animal care and sheltering within King County.
b. Survivability. Notwithstanding any provision in this Agreement to the contrary, the provisions of Section 10 (Indemnification and Hold Harmless) shall remain operative and in full force and effect, regardless of the withdrawal or termination of this Agreement.
c. Waiver and Remedies. No term or provision of this Agreement shall be deemed waived and no breach excused unless such waiver or consent shall be in writing and signed by the Party claimed to have waived or consented.

Failure to insist upon full performance of any one or several occasions does not constitute consent to or waiver of any later non-performance nor does payment of a billing or continued performance after notice of a deficiency in performance constitute an acquiescence thereto. The Parties are entitled to all remedies in law or equity.
d. Grants. Both Parties shall cooperate and assist each other in procuring grants or financial assistance from governmental agencies or private benefactors for reduction of costs of operating and maintaining the Animal Services Program and the care and treatment of animals in the Program. e. Force Majeure. In the event either Party's performance of any of the provisions of this Agreement becomes impossible due to war, civil unrest, and any natural event outside of the Party's reasonable control, including fire, storm, flood, earthquake or other act of nature, that Party will be excused from performing such obligations until such time as the Force Majeure event has ended and all facilities and operations have been repaired and/or restored.
f. Entire Agreement. This Agreement represents the entire understanding of the Parties and supersedes any oral representations that are inconsistent with or modify its terms and conditions.

Document Dated 6-28-17 12
g. Notices. Except as otherwise provided in this Agreement, any notice required to be provided under the terms of this Agreement shall be delivered by E-mail (deemed delivered upon E-mail confirmation of receipt by the intended recipient), certified U.S. mail, return receipt requested or by personal service to the following person (or to any other person that the Party designates in writing to receive notice under this Agreement):

For the City: City of Shoreline
Attn: City Clerk's Office
17500 Midvale Ave N
Shoreline, WA 98133-4905
For the County: Caroline Whalen, Director
[email protected]
King County Dept. of Executive Services
401 Fifth Avenue, Suite 135
Seattle WA. 98104
h. Assignment. No Party may sell, transfer or assign any of its rights or benefits under this Agreement without the approval of the other Party. i. Venue. The Venue for any action related to this Agreement shall be in Superior Court in and for King County, Washington.
1• Records. The records and documents with respect to all matters covered by this Agreement shall be subject to inspection and review by the County or City for such period as is required by state law (Records Retention Act, Ch.

40.14 RCW) but in any event for not less than 1 year following the expiration or termination of this Agreement.
k. No Third Party Beneficiaries. This Agreement is for the benefit of the Parties only, and no third party shall have any rights hereunder.

L Counterparts. This Agreement and any amendments thereto, shall be executed on behalf of each Party by its duly authorized representative and pursuant to an appropriate motion, resolution or ordinance. The Agreement may be executed in any number of counterparts, each of which shall be an original, but those counterparts will constitute one and the same instrument.

Document Dated 6-28-17 13

16. Administration. This Agreement shall be administered by the County Administrative Officer or his/her designee, and by the City Manager, or his/her designee.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed effective as of January 1, 2018.

King County City of Shoreline
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Dow Constantine
King Cgunty fxecutive
48129 117
Date
App -ov a to Form:

King County
Deputy Prosecuting Attorney
Date
xe JNi-InA 045ci3..„4.4aviagetimffor
7 -i1-17
Date
Approved as to Form:

Ci y A ttorney
X11/2617-
Date I
Document Dated 6-2817 14
List of Exhibits
Exhibit A: Animal Services Description
Exhibit B: Control Service District Map Description
Exhibit B-1: Map of Control Service District
Exhibit C: Calculation of Estimated Payments
Exhibit C-1: Pre-Commitment Estimated 2018 Payment (showing participation only by jurisdictions that have expressed interest in contracting for an additional 3 year term)
Exhibit C-2: Estimated Population, Calls for Service, Shelter Use and Licensing Data for Jurisdictions, Used to Derive the Pre-Commitment Estimated 2018 Payment
Exhibit C-3: Calculation of Budgeted Total Allocable Animal Services Costs, Budgeted Total Non-Licensing Revenue and Budget Net Allocable Animal Services Costs for 2018
Exhibit C-4: Calculation and Allocation of Transition Credit, Shelter Credit
Exhibit C-5: [Intentionally Omitted]
Exhibit C-6: Summary of Calculation Periods for Use and Population Components
Exhibit C-7: Payment and Calculation Schedule
Exhibit D: Reconciliation
Exhibit E: Enhanced Control Services Contract (Optional) Exhibit F: Enhanced Licensing Support Services - Terms of Service (Optional) Document Dated 6-28-17 15
Exhibit A
Animal Service Description
Part I: Control Services
Control Services include the operation of a public call center, the dispatch of animal control officers in response to calls, and the handling of calls in the field by animal control officers, including the collection and delivery of animals to the Kent Shelter (or such other shelters as the County may utilize in accordance with this Agreement).

1. Call Center
a. The County will operate an animal control call center five days every week (excluding holidays and County-designated furlough days, if applicable) for a minimum of eight hours per day (normal business hours). The County will negotiate with applicable unions with the purpose of obtaining a commitment for the five day call center operation to include at least one weekend day. The County may adjust the days of the week the call center operates to match the final choice of Control District service days. b. The animal control call center will provide callers with guidance, education, options and alternative resources as possible/appropriate. c. When the call center is not in operation, callers will hear a recorded message referring them to 911 in case of emergency, or if the event is not an emergency, to either leave a message or call back during regular business hours.

2. Animal Control Officers
a. The County will divide the area receiving Control Services into three Control Districts as shown on Exhibit B. Subject to the limitations provided in this Section 2, Control Districts 200 and 220 each will be staffed with one Animal Control Officer during Regular ACO Service Hours and District 500 will be staffed with two Animal Control Officers (ACOs) during Regular ACO Service Hours. Regular ACO Service Hours is defined to include not less than 40 hours per week. The County will negotiate with applicable unions with the intention of obtaining a commitment for Regular ACO Service Hours to include service on at least one weekend day. Regular ACO Service Hours may change from time to time.
i. Except as the County may in its sole discretion determine is necessary to protect officer safety, ACOs shall be available for responding to calls within their assigned Control District and will not be generally available to respond to calls in other Control Districts. Exhibit B-1 shows the map of Control Districts.

Document Dated 6-28-17 16
ii. Countywide, the County will have a total of not less than 6 ACOs (Full-Time Equivalent employees) on staff to maximize the ability of the County to staff all Control Districts notwithstanding vacation, sick-leave, and other absences, and to respond to high workload areas on a day-to-day basis. While the Parties recognize that the County may at times not be able to staff all Control Districts as proposed given unscheduled sick leave or vacancies, the County will make its best efforts to establish regular hourly schedules and vacations for ACOs in order to minimize any such gaps in coverage. In the event of extended absences among the 6 ACOs, the County will re-allocate remaining ACOs as practicable in order to balance the hours of service available in each Control District. In the event of ACO absences (for any causes and whether or not such absences are extended as a result of vacancies or other issues), the first priority in allocating ACOs shall be to ensure there is an ACO assigned in each Control District during Regular ACO Service Hours.
b. Control District boundaries are designed to balance work load, correspond to jurisdictional boundaries and facilitate expedient transportation access across each district. The County will arrange a location for an Animal Control vehicle to be stationed overnight in Control Districts ("host sites") in order to facilitate service and travel time improvements or efficiencies. c. The County will use its best efforts to ensure that High Priority Calls are responded to by an ACO during Regular ACO Service Hours on the day such call is received. The County shall retain full discretion as to the order in which High Priority calls are responded. High Priority Calls include those calls that pose an emergent danger to the community, including:

1. Emergent animal bite,

2. Emergent vicious dog,

3. Emergent injured animal,

4. Police assist calls— (police officer on scene requesting assistance from an ACO),

5. Emergent loose livestock or other loose or deceased animal that poses a potential danger to the community, and

6. Emergent animal cruelty.
d. Lower priority calls include all calls that are not High Priority Calls. These calls will be responded to by the call center staff over the telephone, referral to other resources, or by dispatching of an ACO as necessary or available, all as determined necessary and appropriate in the sole discretion of the County. Particularly in the busier seasons of the year (spring through fall), Document Dated 6-28-17 17
lower priority calls may only receive a telephone response from the Call Center. Lower Priority calls are non-emergent requests for service, including but not limited to:

1. Non -emergent high priority events,

2. Patrol request — (ACO requested to patrol a specific area due to possible code violations),

3. Trespass,

4. Stray Dog/Cat/other animal confined,

5. Barking Dog,

6. Leash Law Violation,

7. Deceased Animal,

8. Trap Request,

9. Female animal in season, and

10. Owner's Dog/Cat/other animal confined.
e. The Joint-City County Collaboration Committee is tasked with reviewing response protocols and recommending potential changes to further the goal of supporting the most appropriate use of scarce Control Service resources countywide. The County will in good faith consider such recommendations but reserves the right to make final decisions on response protocols. The County will make no changes to its procedures that are inconsistent with the terms of this Exhibit A, except that upon the recommendation of the Joint City-County Collaboration Committee, the County may agree to modify response with respect to calls involving animals other than horses, livestock, dogs and cats.
f. In addition to the ACOs serving specific districts, the following Control Service resources will be available on a shared basis for all Parties and shall be dispatched as deemed necessary and appropriate by the County.

1. An animal control sergeant will provide oversight of and back- up for ACOs five days per week at least 8 hours/day (subject to vacation/sick leave/training/etc.).

2. Staff will be available to perform animal cruelty investigations, to respond to animal cruelty cases, and to prepare related reports (subject to vacation/sick leave/training/etc.).

3. Not less than 1 ACO will be on call every day at times that are not Regular ACO Service Hours (including the days per week that are not included within Regular ACO Service Hours), to respond to High Priority Calls posing an extreme life and safety danger, as determined by the County.
g. The Parties understand that rural areas of the County will generally receive a less rapid response time from ACOs than urban areas.

Document Dated 6-28-17 18
h. Contracting Cities may contract with King County for "Enhanced Control Services" through separate agreement (as set forth in Exhibit E); provided that a City may not purchase Enhanced Control Services under Option 1 as described in Exhibit E if such City is receiving a Transition Funding Credit and/or Shelter Credit.

Part II: Shelter Services
Shelter services include the general care, cleaning and nourishment of owner-released, lost or stray dogs, cats and other animals. Such services shall be provided 7-days per week, 365 days per year at the County's animal shelter in Kent (the "Shelter") or other shelter locations utilized by the County, including related services described in this section.

Major maintenance of the Shelter will continue to be included in the Program costs allocated under this Agreement (as part of the central County overhead charges allocated to the Program). No major renovation, upgrades or replacements of the Shelter established as a capital project within the County Budget are anticipated. Nor will any such capital project costs be allocated to the Contracting Cities during the term of this Agreement without prior agreement of the Contracting Cities.

1. Shelter Services
a. Services provided to animals will include enrichment, exercise, care and feeding, and reasonable medical attention.
b. The Public Service Counter at the Shelter will be open to the public not less than 30 hours per week and not less than 5 days per week, excluding holidays and County designated furlough days, for purposes of pet redemption, adoption, license sales services and (as may be offered from time to time) pet surrenders. The Public Service Counter at the shelter may be open for additional hours if practicable within available resources. c. The County will maintain a volunteer/foster care function at the Shelter to encourage use of volunteers working at the shelter and use of foster families to provide fostering/transitional care between shelter and permanent homes for adoptable animals.
d. The County will maintain an animal placement function at the Shelter to provide for and manage adoption events and other activities leading to the placement of animals in appropriate homes.
e. Veterinary services will be provided and will include animal exams, treatment and minor procedures, spay/neuter and other surgeries. Limited emergency veterinary services will be available in non-business hours, through third-party contracts, and engaged if and when the County determines necessary.

Document Dated 6-28-17 19
f. The County will take steps through its operating policies, codes, public fee structures and partnerships to reduce the number of animals and their length of stay in the Shelter, and may at times limit owner-surrenders and field pick-ups, adjust fees and incentivize community-based solutions.

2. Other Shelter services
a. Dangerous animals will be confined as appropriate/necessary. b. Disaster/emergency preparedness for animals will be coordinated regionally through efforts of King County staff.

3. Shelter for Contracting Cities contracting with PAWS (Potentially including Woodinville, Shoreline, Lake Forest Park, Kenmore ("Northern Cities")). For so long as a Northern City has a contract in effect for sheltering dogs and cats with the Progressive Animal Welfare Society in Lynnwood (PAWS), or other animal service providers the County will not shelter dogs and cats picked up within the boundaries of such City(s), except in emergent circumstances and when the PAWS Lynnwood (or other animal service providers), shelter is not available. Dogs and cats picked up by the County within such City(s) will be transferred by the County to the PAWS (shelter in Lynnwood (or other animal service providers)for shelter care, which will be provided and funded solely through separate contracts between each Northern City and PAWS, (or other animal service providers )and the County will refer residents of that City to PAWS (or other animal service providers) for sheltering services. The County will provide shelter services for animals other than dogs and cats that are picked up within the boundaries of Northern Cities contracting with PAWS (or other animal service providers) on the same terms and conditions that such shelter services are provided to other Contracting Parties.

Except as provided in this Section, the County is under no obligation to drop animals picked up in any Contracting City at any shelter other than the County shelter in Kent.

4. County Contract with PAWS, or other animal service providers. Nothing in this Agreement is intended to preclude the County from contracting with other entities to care for animals taken in by the County.

5. Service to Persons who are not Residents of Contracting Cities. The County will not provide routine shelter services for animals brought in by persons who are not residents of Contracting Cities, but may provide emergency medical care to such animals, and may seek to recover the cost of such services from the pet owner and/or the City in which the resident lives.

Part III: Licensing Services
Licensing services include the operation and maintenance of a unified system to license pets in Contracting Cities.

Document Dated 6-28-17 20

1. The public will be able to purchase pet licenses in person at the County Licensing Division public service counter in downtown Seattle (500 4th Avenue), King County Community Service Centers and the Kent Animal Shelter during regular business hours. The County will maintain on its website the capacity for residents to purchase pet licenses on-line.

2. The County may seek to engage and maintain a variety of private sector partners (e.g. veterinary clinics, pet stores, grocery stores, city halls, apartment complexes) as hosts for locations where licenses can be sold or promoted in addition to County facilities.

3. The County will furnish licenses and application forms and other materials to the City for its use in selling licenses to the public at City facilities and at public events.

4. The County will publicize reminders and information about pet licensing from time to time through inserts in County mailings to residents and on the County's public television channel.

5. The County will annually mail or E-mail at least one renewal form, reminder and late notice (as applicable) to the last known addresses of all City residents who purchased a pet license from the County within the previous year (using a rolling 12-month calendar).

6. The County may make telephone reminder calls in an effort to encourage pet license renewals.

7. The County shall mail pet license tags or renewal notices as appropriate to individuals who purchase new or renew their pet licenses.

8. The County will maintain a database of pets owned, owners, addresses and violations.

9. The County will provide limited sales and marketing support in an effort to maintain the existing licensing base and increase future license sales. The County reserves the right to determine the level of sales and marketing support provided from year to year in consultation with the Joint City-County Collaboration Committee. The County will work with any City in which door-to-door canvassing takes place to reach agreement with the City as to the hours and locations of such canvassing.

10. The County will provide current pet license data files (database extractions) to a Contracting City promptly upon request. Data files will include pets owned, owners, addresses, phone numbers, E-mail addresses, violations, license renewal status, and any other relevant or useful data maintained in the County's database on pets licensed within the City's limits. A City's database extraction will be provided in electronic format agreed to by both parties in a timely fashion and in a standard data release format that is easily usable by the City.

Document Dated 6-28-17 21
Exhibit B: Control Service District Map
The attached map (Exhibit B-1) shows the boundaries of the 3 Control Service Districts.

The cities and towns included in each Control District are as follows:

District 200 (Northern District)
Shoreline
Lake Forest Park
Kenmore
Woodinville
Redmond
Sammamish
Duvall
Carnation
District 220 (Eastern District)
Bellevue
Mercer Island
Yarrow Point
Clyde Hill
Town of Beaux Arts
Issaquah
Snoqualmie
North Bend
Newcastle
District 500 (Southern District)
Tukwila
SeaTac
Kent
Covington
Maple Valley
Black Diamond
Enumclaw
The Districts shall each include portions of unincorporated King County as illustrated on Exhibit B-1.

Document Dated 6-28-17 22
Exhibit B-1
RASKC Control District Map (* 3 Districts are for operational purposes _1
200
2011120m 1,100
2011 Peculdkve WAS
-.777
a
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••,. 2. 1
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L e 7 .,11
r, 3.- - - - • • 77. ___...- -..:.1.,..4f"---
220
114•11, la*
)
2011 Calls: 1,001
2011 Pop0120or 295.1102
500
2011 Cats: 2.007
2011 PopuLtrion: 220,323
Regional Animal Services of
King County - 2018
.0 Districts
Cities
WKingCoulty 1 5;:iaQ!!!! o 1 2 3 M20:0

GIS CENIZR
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9•E 444.1•rw.:1,ose
*Note: 3 districts are for operational purposes; cost allocation is calculated combining all districts into one) Document Dated 6-28-17 23
Exhibit C
Calculation of Estimated Payments
The Estimated Payment is the amount, before reconciliation, owed by the City to the County (or owed by the County to the City if the amount calculated is less than $0) for the provision of one (1) year of Animal Services, based on the formulas below.

In summary and subject to the more detailed descriptions below, an initial cost allocation is made for the Service Year (example 2018) based on the cost factors described in Part 1 below; costs are offset by various revenues as described in Part 2. An annual reconciliation is completed as described in Part 3.

Based on the calculation process described in Parts 1 and 2, an "Estimated Payment" amount owed by each City for each Service Year is determined. Each Estimated Payment covers one (1) year of service. Payment for service is made by each City every August 15.

Part 1: Service Year Cost Allocation Process
• Control Services costs are to be allocated among all Contracting Parties based 20% on their relative population and 80% on the number of calls for service attributable to each Contracting Party. Shelter Services costs are to be allocated among all Contracting Parties based 20% on their relative population and 80% on the total shelter intake of animals attributable to each Contracting Party, except that cities contracting for shelter services with PAWS (or other animal service providers) will pay only a population-based charge. • Licensing Services costs are to be allocated among all Contracting Parties, based 20% on their relative population and 80% on the number of licenses issued to residents of each Contracting Party.

Part 2: Revenue and Other Adjustments to the Cost Allocation In 2018 and each Service Year thereafter, the costs allocable to each Contracting Party are reduced by various revenues and credits:
• Licensing revenue will be attributed to each Contracting Party based on the residency of the individual purchasing the license (see Part 3 for reconciliation of Licensing Revenues). As Licensing Revenue and Non-Licensing Revenues change from year to year, the most recent historical actual data for these amounts will be incorporated to offset costs (See Exhibit C-6 for calculation periods). Historical actual data shall be derived from the most recent complete Document Dated 6-28-17 24
year, or the most recent December — November actual, whichever is more, unless otherwise approved by the Joint City County Collaboration Committee. • Two credits are applicable to various Contracting Cities to reduce the amount of their Estimated Payments: a Transition Funding Credit (fixed at 2013 level, payable annually through 2022) for cities with high per-capita costs and a Shelter Credit (for Contracting Cities with the highest per capita intakes (usage)) (adjusted annually as indicated in Exhibit C-4, payable annually through 2022, ).

The County agrees to give serious consideration to maintaining the various credits provided to the Contracting City under this Agreement in any extension of the Agreement. Application of these Credits is limited such that the Estimated Payment cannot fall below zero (before or after the annual Reconciliation calculation).
• All Contracting Cities may request Enhanced Licensing Support Services by executing a separate Enhanced Licensing Support Services Agreement and Acknowledgement form with the County (Exhibit F, Attachment A). This support is subject to availability of County staff.
• In each Service Year subsequent to 2018, allocable costs are adjusted for each Contracting Party based on the actual increase or decrease in allocable costs from year to year for the whole Program. Total Budgeted Allocable Costs cannot increase by more than the Annual Budget Inflator Cap. The Annual Budget Inflator Cap is the rate of inflation (based on the annual change in the September CPI-U for the Seattle-Tacoma-Bremerton area over the rate the preceding year) plus the rate of population growth for the preceding year for the County (including the unincorporated area and all Contracting Cities). • In all Service Years, costs are also adjusted for annexations (in or out of the Program service area) of areas with a population of 2,500 or more and the shift in relative population shares among all Contracting Parties as a result of any Latecomer Cities.

Part 3: Reconciliation
• Estimated Payments are reconciled to reflect actual revenues as well as changes in population attributable to annexations of areas with a population of 2,500 or more (in or out of the Program) and the shifts in relative population among all Contracting Parties as a result of any Latecomer Cities. The Reconciliation occurs Document Datcd 6-28-17 25
by June 30 of the following calendar year. The Reconciliation calculation and payment process is described in Exhibit D.
• The receipt of Transition Funding Credits or Shelter Credits can never result in the amount of the Estimated Reconciliation Adjustment Payment falling below $0.
• If a jurisdiction's licensing revenues exceed its net costs payable under this Agreement, then in the annual reconciliation process, the excess licensing revenue is reallocated to offset the County's costs not included in the cost allocation model provided that, the determination of net costs shall be adjusted as follows: (1) for a Contracting City purchasing shelter services from PAWS (or other animal service provider);, net costs includes consideration of the amounts paid by such City to PAWS (or other animal service provider); and (2) for a Contracting City purchasing Enhanced Control Services per Exhibit E, and/or purchasing Enhanced Licensing Support Services per Exhibit F , net costs includes consideration of the amounts paid for such services.

Part 4: Estimated Payment Calculation Formulas
For Each Service Year .

EP = [(EC + ES + EL) - (ELR + TC + SC)]
Where:
"EP" is the Estimated Payment. For Contracting Cities receiving a Transition Credit or Shelter Credit, the value of EP may not be less $0.
"EC" or "Estimated Control Services Cost" is the City's estimated share of the Budgeted Net Allocable Control Services Cost for the Service Year. See formula below for deriving "EC."
"ES" or "Estimated Shelter Services Cost" is the City's estimated share of the Budged Net Allocable Shelter Services Cost for the Service Year. See formula below for deriving "ES." "EL" or "Estimated Licensing Services Cost" is the City's estimated share of the Budgeted Net Allocable Licensing Services Cost for the Service Year. See formula below for deriving "EL."
Document Dated 6-28-17 26
"ELR" is Estimated Licensing Revenue attributable to the City. For purposes of determining the Estimated Payment in Year 2018, ELR is based on the amount of revenue from each type of active license issued to City residents in 2016, or December 2015- November 2016, whichever is more (the "Calculation Period"). Exhibit C-2 shows a preliminary estimate of 2016 Licensing Revenue; the numbers in this exhibit are subject to Reconciliation by June 30, 2019. Additional factors for Estimated Licensing Revenue:

For Contracting Cities that have executed an Enhanced Licensing Support Services Agreement and Acknowledgement form per Exhibit F, ER is increased by adding the estimated net amount of revenue, if any, estimated to be derived as a result of Enhanced Licensing Support Services provided to the City (the "Licensing Revenue Target" or "RT" less the estimated Enhanced Licensing Support Services cost); this amount is shown in the column captioned "Estimated Revenue from Enhanced Licensing Support" on Exhibit C-1).

License Revenue that cannot be attributed to a specific Party (e.g., License Revenue associated with incomplete address information), which generally represents a very small fraction of overall revenue, is allocated amongst the Parties based on their respective percentages of ELR as compared to Total Licensing Revenue.

Notwithstanding the foregoing, "ELR" may be based on an estimated amount of licensing for the Service Year for the City if, in the reasonable judgment of the County, an estimated Licensing Revenue amount can be proposed that is likely to more closely approximate the actual Licensing Revenue for the Service Year than the data from the Calculation Period; provided that the use of any estimates shall be subject to the conditions of this paragraph. The County shall work with the Joint City-County Collaboration Committee to develop estimated Licensing Revenue amounts for all Contracting Cities for the upcoming Service Year. If the Joint City County Collaboration Committee develops a consensus proposal (agreement shall be based on the consensus of those Contracting Cities present at the Joint City- County Collaboration Committee meeting in which Licensing Revenue estimates are presented in preparation for the December 15 Estimated Payment Calculation notification), it shall be used in developing the December 15 Final Estimated Payment Calculation. If a consensus is not reached, the County shall apply the actual Licensing Revenue from the Calculation Period for the Service Year to determine the Preliminary Estimated Payment.
"TC" is the Transition Funding Credit, if any, allocable to the City for each Service Year calculated per Exhibit C-4.

Document Dated 6-2847 27
"SC" is the Shelter Credit, if any, allocable to the City for each Service Year calculated per Exhibit C-4.
"B" is the "Budgeted Total Net Allocable Costs" estimated for the Service Year for the provision of Animal Services which are allocated among all the Contracting Parties for the purposes of determining the Estimated Payment. The Budgeted Total Net Allocable Costs are calculated as the Budgeted Total Allocable Costs (subject to the Annual Budget Inflator Cap) less Budgeted Total Non-Licensing Revenue. The Budgeted Total Allocable Costs exclude any amount expended by the County as Transition Funding Credits, or Shelter Credits (described in Exhibit C-4), or to provide Enhanced Licensing Support Services (described in Section 8). A preliminary calculation (by service area — Control, Shelter, Licensing) of Budgeted Total Net Allocable Costs, Budgeted Total Allocable Costs and Budgeted Total Non-Licensing Revenue for purposes of calculating the Pre-Commitment Estimated 2018 Payments is set forth in Exhibit C-3. "Total Licensing Revenue" means all revenue received by the County's Animal Services Program attributable to the sale of pet licenses excluding late fees, refunds and rebates.

With respect to each Contracting Party, the amount of "Licensing Revenue" is the revenue generated by the sale of pet licenses to residents of the jurisdiction, excluding late fees, refunds and rebates. (With respect to the County, the jurisdiction is the unincorporated area of King County.)
"Total Non-Licensing Revenue" means all revenue from fines, forfeitures, and all other fees and charges imposed by the County's Animal Services program in connection with the operation of the Program, but excluding Total Licensing Revenue, Designated Donations, grants, or entrepreneurial activities.
"Designated Donations" mean donations from individuals or other third parties to the County made for the purpose of supporting specific operations, programs or facilities within the Animal Services Program.
"Enhanced Licensing Support Services" means activities or funding to be undertaken in specific cities to enhance licensing revenues, per Section 8 and Exhibit F. "Annual Budget Inflator Cap" means the maximum amount by which the Budgeted Total Allocable Costs may be increased from one Service Year to the next Service Year, and year to year, which is calculated as the rate of inflation (based on the annual change in the September CPI-U for the Seattle-Tacoma-Bremerton area over the rate the preceding year) plus the rate of population growth for the preceding year for the County (including the Document Dated 6-28-17 28
unincorporated area and all Contracting Cities), as identified by comparing the two most recently published July OFM city and county population reports. The cost allocations to individual' services (e.g. Control Services, Shelter Services or Licensing Services) or specific items within those services may be increased or decreased from year to year in so long as the Budgeted Total Annual Allocable Costs do not exceed the Annual Budget Inflator Cap. "Service Year" is the calendar year in which Animal Services are/were provided. "Calculation Period" is the time period from which data is used to calculate the Estimated Payment. The Calculation Period differs by formula component and Service Year. Exhibit C-6 sets forth in table form the Calculation Periods for all formula factors for the Service Years.
"Population" with respect to any Contracting Party for Service Year 2018 means the population number derived from the State Office of Financial Management (OFM) most recent annually published report of population used for purposes of allocating state shared revenues in the subsequent calendar year (typically published by OFM each July, reflecting final population estimates as of April of the same calendar year). For each Service Year, the OFM reported population will be adjusted for annexations of 2,500 or more residents known to be occurring after April, 2017 and before the end of the Service Year.

For example, when the final Estimated Payment calculation for 2018 is provided on December 15, 2017, the population numbers used will be from the OFM report issued in July 2017 and will be adjusted for all annexations of 2,500 or more residents that occurred (or are known to be occurring) between April 1, 2017 and December 31, 2018. In any Service Year, if: (1) annexations of areas with a population of 2,500 or more people occurs to impact the population within the jurisdiction of a Contracting Party; or (2) a Latecomer City is brought under contract with the County, these changes shall be accounted for in the calculation of the Estimated Payment for such Service Year. Such adjustment shall be made at the next occurring possibility (e.g., at calculation of the Final Estimated Payment, or Reconciliation, whichever is soonest). The adjustment will be made on a pro rata basis to reflect the portion of the year in which the population change was in effect. • The population of an annexed area will be as determined by the Boundary Review Board, in consultation with the annexing city. The population of the unincorporated area within any District will be determined by the County's demographer.
• In the case of a Latecomer City, the population shall be similarly adjusted among all Contracting Parties in the manner described above for annexations, by considering the change in population between all Contracting Parties attributable solely to the Latecomer City becoming a Contracting Party.

Document Dated 6-28-17 29
Exhibit C-1 shows the calculation of Pre-Commitment EP for Service Year 2018 assuming that the County and all Cities that have expressed interest in signing this Agreement as of December 31, 2016, do in fact approve and sign the Agreement.

Component Calculation Formulas (used in each Service Year ):

Estimated Control (EC) Services Costs is calculated as follows:

EC = ((C x .8) x ACFS) ((C x .2] x Pop%)
Where:
"C" is the Budgeted Net Allocable Control Services Cost for the Service Year, which equals the County's Budgeted Total Allocable Costs for Control Services in the Service Year, less the Budgeted Total Non-Licensing Revenue attributable to Control Services in the Service Year (for example, fines issued in the field). For purposes of determining the Pre-Commitment Estimated Payments for 2018, the Budgeted Net Allocable Control Services Cost is $1,979,509., calculated as shown on Exhibit C-3, and shall be similarly derived to determine the Final Estimated Payment for 2018 and each Service Year. "ACFS" is the total Average annual number of Calls for Service during the Calculation Period for the Service Year for Control Services originating within the City expressed as a percentage of the ACFS for all Contract Parties.. A Call for Service is defined as a request from an individual, business or jurisdiction for a control service response to a location within the City, or a response initiated by an Animal Control Officer in the field, which is entered into the County's data system (at the Animal Services call center or the sheriff's dispatch center acting as back-up to the call center) as a request for service. Calls for information, hang-ups and veterinary transfers are not included in the calculation of Calls for Service. A response by an Animal Control Officer pursuant to an Enhanced Control Services Contract will not be counted as a Call for Service. For purposes of determining the Estimated Payment for each Service Year, the Calculation Period for ACFS is the rolling annual average based on the most recently completed three (3) calendar years actual usage. For example 2014-2016 for 2018 Service Year. Exhibit C-2 shows a preliminary estimate of ACFS for 2014-2016, used to determine the Pre-Commitment Estimated 2018 Payment; the numbers in this Exhibit C-2 are subject to Reconciliation by June 30, 2017.
"Pop%" is the Population of the City or unincorporated County, expressed as a percentage of the Population of all Contracting Parties.

Document Dated 6-28-17 30
Estimated Shelter (ES) cost for each Service Year is calculated as follows:

If, as of the effective date of this Agreement, the City has entered into a contract for shelter services with the Progressive Animal Welfare Society (PAWS) in Lynnwood, WA, (or other animal service provider), then, for so long as such contract remains in effect, the City will not pay a share of shelter costs associated with shelter usage ("AA" as defined below) and instead the Estimated Payment will include a population-based charge only, reflecting the regional shelter benefits nonetheless received by such City, calculated as follows (the components of this calculation are defined as described below).

ES (S x.2 x Pop%)
If the City does not qualify for the population-based shelter charge only, ES is determined as follows:

ES = (S x .2 x Pop%) + (S x .8 x AA)
Where:
"S" is the Budgeted Net Allocable Shelter Services Cost for the Service Year, which equals the County's Budgeted Total Allocable Costs for Shelter Services less Budgeted Total Non- Licensing Revenue attributable to Shelter operations (i.e., adoption fees, microchip fees, impound fees, owner-surrender fees, from all Contracting Parties). For purposes of determining the Pre-Commitment Estimated Payments for 2018, the Budgeted Net Allocable Shelter Services Cost is $2,960,088., calculated as shown on Exhibit C-3, and shall be similarly derived to determine the Final Estimated Payments for 2018 and for each Service Year.
"Pop%" is the population of the City, or unincorporated County, expressed as a percentage of the Population of all Contracting Parties. "AA" is the animal intakes that were: (1) picked up by County Animal Control Officers from within the City, (2) delivered by a City resident to the County shelter, or (3) delivered to the shelter that are owned by a resident of the City, averaged during the Calculation Period and expressed as a percentage of the total number of animals in the County Shelter during the Calculation Period. For purposes of calculating the Estimated Payment for each Service Year, the Calculation Period for "AA" is the rolling annual average based on Document Dated 6-28-17 31
the most recently completed three (3) calendar years (for example 2014-2016 for Service Year 2018)(actual usage). Exhibit C-2 shows a preliminary estimate of "AA" for 2014-2016 used to determine the Pre-Commitment Estimated 2018 Payments; the numbers in this exhibit are subject to Reconciliation by June 30, 2017.

Estimated Licensing (EL) cost for each Service Year is calculated as follows:

EL = (L x .2 x Pop%) ÷ (L x .8 x ALI)
Where:
"L" is the Budgeted Net Licensing Services Cost for the Service Year, which equals the County's Budgeted Total Allocable Costs for License Services in the Service Year less Budgeted Total Non-Licensing Revenue attributable to License Services (for example, pet license late fees) in the Service Year . For purposes of determining the Pre-Commitment Estimated Payments for 2018, the Budgeted Net Licensing Cost is $686,512., calculated as shown on Exhibit C-3, and shall be similarly derived to determine the Final Estimated Payments for 2018 and each Service Year.
"Pop%" is the Population of the City expressed as a percentage of the population of all Contracting Parties.
"ALI" (Average Licenses Issued) is the number of active paid regular pet licenses (e.g., excluding 'buddy licenses" or temporary licenses) issued to City residents during the Calculation Period. For purposes of calculating the Estimated Payment for each Service Year, the Calculation Period for "ALI" is the rolling annual average based on the most recently completed three (3) calendar years actual usage. For example 2014-2016 for 2018 Service Year. Exhibit C-2 shows a preliminary estimate of "ALI" to be used for calculating the Pre-Commitment Estimated 2018 Payments; the numbers in this Exhibit are subject to reconciliation by June 30, 2017.

Document Dated 6-28-17 32
Document Dated 6-28-17 33
Regional Animal Services of King County -DRAFT C-1
Jurildiakm Reid Osst
Cast Alioation
Shelter Cost Lie lag Cart T Bud Cast
W at 14 ioeft• lc
Beaux Ara 5 447 5 188 5 231 $ 917
Bellevue 5 16S13913 5 38,738 S 93.1133 5 447743
Black Diamond 3 91E0 $ 111V07 5 4011 31.236
Carnation S 4638 5 4,E07 5 1,743 5 1.12a7
Clyde Hill 5 3.210 3 2.534 S 3,996 5 7741
Coq' nes n S 41,463 5 109,169 S 17754 S 1E0,335
Duvall S 13,703 5 3.1.401 S 6,125 5 31.333
Enumclaw J 4452 5 51358 5 10.293 5 393.614
Issaquah 5 63,302 S 11218 * 1114.4 5 123,465
Kenmore 47,880 5 15036 S 19,1117 3 80,913
Kent
.....3
5 MOS 5 840 393 5 77.473 5 L366.764
Lake Forest Park $ 24,416 5 13126 .5 11,372 3 44,25
Maple Val ley S 67,112 5 71001 $ 2.1,307 $ 1$3,727
Mercer b land 5 21488 5 1720 S 14511 5 %PT
Newcastle 5 20,060 .5 191315 S 7770 5 4444
North Bend 5 Ive $ $253 5 5.30 5 34,863
Redmond S OMB 5 70,04 5 3035 S 174220
Sammarnish 5 4%870 $ 5.6089 3 40,364 S 1614324
SesTac S 91,5131 .5 337,977 S 23.435 5 342,928
Shoreline S 113,651 5 34,532 S 39,383 S 184,560
Snoqualmie
Tukwila
S 113,963
3 614223
5 211/63
5 12,7536
5 4319 5 47736...e.-
5 Mr $ 253236
Woodinville S *MS $ 7,266 5 0,119 S 33,430
Yarrow Pt 5 1.1179 5 653 $ 734 5 2.465
U n in carp . King County 65e,00 5 921,317 5 217,366 5 1,717,383 Total S 1979,509 I S 1593003 I 5 086,512 5 5,626,109
Summary Field 13:at Shaker COST licertsintCtst TOM Cart Budgeted Total anacabie Car s. 2,111,8,.. 5 30:ISMS 5 74Ma 5 5-573,759 Budgeted Nun-Licensing Ron•3 141450 S 132,71111 5 77,000 5 347,650 Budgeted New Regional AM 3 - S - S - S -
Budgeted Net Mumble Oat S 1979509 S 2.960,083 S 086.522 5 5,626M9 2918 Estimated Payment CalCillatiOR (Draft)
net LIcenting
lieceaue•
1st
Enlmated Net
Cast
d,4,11
51,772 5 354
5323,822 5 (73,668)
Creates
5 S
515,765 _5 11A471) 5516
5791 3__13„22 n 3 553
57,443 5 243 5
55:9,655 S 097301 S
525031 5 (6,202) 5
S45077 S (s.745371 s 16 594
572,357 5 (51,098 5
590.879 3 9,966 5
5354,270 5 (9111,454) 255 547583
5444144 3 ell) 5
59,1772 1____EttAn) 6,F7
_EsLiss S _i7.452)
534,419 S (7,725) S -
524,242 5 (10.501) 5 1,376
51223,550 5 (443s730), S -
5356,757 3 .7.367) S -
543208 S 299,2111 5 146,076
5143.4112 S (S163) 5 -
531-462 .5 W115, S., --,---532,150 5 (722 ...-- ,8 0 6 ' 5 11.Z017 537417 .... 5 j91 i---- -
57733 S 254
Enhanced
Licensing Net
Revenue (ert'd)
Ile
Net Fbtal Cart
5 354
(73,66111)
s us.stly
S (51.093)
S 9,966
S 052.5_1.1),
(S)
5 02,191
t7.7251
002251
(43.730j
S (70757)
5 (353,525)
(41.162)
S (1..1119
5 (110799i
5 (933)!
254
• Pet Licers e assumption based on 2016 Acton (Preliminary) .5 960,252 S (537127)
S 2,770,684 S 425) S 899,614 5
Nate: r3 LErnabed h. P,mazinn rnitlnInn L pc rind eared an d.nta. .lote FinaI E Lin-mind Farnen LCalcv la Linn will he ismaccl pvL§c Ic ram a r lha 20 Lb. 5 M37,122)
S (1,556011)
ItegimmlAnimalSerriers Wiling County
Dnift1-20-1,
Document Dated 6-28-17 34
Exhibit C-2
Jurisdiction
2016
Population
Average Calls
for Service
2014-2016
Average
Intakes
2014 - 2016
Average
Licenses
Issued
2014- 2016
Beaux Arts 300 1 - 40
Bellevue _ 139,400 333- 162 _ 12,605
Black Diamond 4,305 23 25 573
Carnation 1,850 12 6 248
Clyde Hill ____ 3,060 6 1
-
261
Covington ........._.......... .................__.... 18,750 ........... .77425
.......... 167 ......... 159 ...._.........2,529.

Duvall....._ 33 11 849
Enumclaw 11,410 113 72 1,453Issaquah __
34,590 _ 152 31 -2,425
Kenmore 22,320 120 - 2,654
Kent 124,500 862 1,277 9,990
King County (Unined)* 245,920 1,729 1 252f -..-.... 30,662 Lake Forest Park 12,940 60 1,597
Maple Valley ___. 24,790 __. 158 ...__ _ 91 .___ 2,979 Mercer Island _ 23,660 36 12 _ 1,930
Newcastle 11,090 48 12 1,036
North Bend 6,570 33 18 910
Redmond 60,560 130 53 4,346
Sam mam ish* 61,250 122 34 5,293
Se aTac 27,810 249 360 1,579
Shoreline _____ 54,990 276 -
_
5,114
Snoqu almi a 13,110 42 20 1,079
Tukwila 19,540 187 270 1,118
Woodinville 11,570 41 - 1,083
Yarrow Pt 1,040 2 • - 98
Grand Total 942,750 4,935 3,866 92,451
Population, Calls for Service, Shelter Intakes, and Licenses Issued - Data by Jurisdiction - Used to Derive the Precom mitm ent 2018 Esti m ated Cast Allocation Notes: 3-Year Average is rounded to nearest whole number, 2015 Source data based on preliminary usage count)
Final usage data (2014-2016) and population data for 2017 will be used to update and determine the Final 2018 Payment Calculation
Source: WA ST Office of Financial Management (population), Regional Animal Services of King County (usage)
*Usage adjusted for 2016 KI ahan le Annexation
Regional Animal Services of King County
1-20-2017
Exhibit C-3
Document Dated 6-28-17 35
Calculation of Budgeted Total Allocable Costs, Budgeted Total Non-Licensing Revenue, and Budgeted Net Allocable Costs
Cost
_
1 Direct Service Management Staff Costs $161,969
2 Direct Service Field Staff Costs $799,269
3 Call Center Direct Service Staff Costs $268,415
4 Overtime, Duty, Shift Differential and Temp Costs 68,340 5 Facilities Costs 8,055
6 Office and Other Operational Supplies and Equipment $17,500 7 Printing, Publications, and Postage $23,000
8 Medical Costs $50,000
9 Other Services $75,000
10 Transportation $200,981
11 Communications Costs 39,336
12 IT Costs and Services $126,625
13 Misc Direct Costs $90,536
14 General Fund Overhead Costs 47,140
15 Division Overhead Costs $121,798
16 Other Overhead Costs 23,995
2018 Budgeted Total Allocable Control Services Cost $2,121,959 17 Less 2018 Budgeted Total Non-Licensing Revenue
Attributable to Control Services
$142,450
2018 Budgeted Net Allocable Control Services Cost $1,979,509 This Exhibit Shows the Calculation of Budgeted Total Allocable Costs, Budgeted Total Non- Licensing Revenue, and Budgeted Net Allocable Costs to derive Pre-Commitment Estimated 2018 Payments. All values shown are based on annualized costs and revenues. The staffing levels incorporated in this calculation are for year 2018 only and except as otherwise expressly provided in the Agreement may change from year to year as the County determines may be appropriate to achieve efficiencies, etc.

Control Services: Calculation of Budgeted Total Allocable Costs, Budgeted Total Non- Licensing Revenue, and Budgeted Net Allocable Costs
The calculation of Pre-Commitment Estimated 2018 Control Services Costs is shown below.

NOTES:

Documents Dated 6-28-17 36
4 These additional salary costs support complete response to calls at the end of the day, limited response to emergency calls after hours, and extra help during peak call times.
5 Facilities costs include maintenance and utilities for a portion (5%) of the Kent Shelter (which houses the call center staff operations and records retention as well as providing a base station for field officers).
6 This item includes the office supplies required for both the call center as well as a wide variety of non-computer equipment and supplies related to animal control field operations (e.g., uniforms, tranquilizer guns, boots, etc.). 7 This cost element consists of printing and publication costs for various materials used in the field for animal control.
8 Medical costs include the cost for ambulance and hospital care for animals requiring emergency services.
9 Services for animal control operations vary by year but consist primarily of consulting vets and laboratory costs associated with cruelty cases. 10 Transportation costs include the cost of the maintenance, repair, and replacement of the animal care and control vehicles and cabs, fuel, and reimbursement for occasional job-related use of a personal vehicle.
11 Communication costs involve the direct service costs for telephone, cell phone, radio, and pager use.
12 Information technology direct costs include IT equipment replacement as well as direct services costs.
13 Miscellaneous direct costs consist of all animal control costs not listed above including but not limited to contingency, training, certification, and bad checks. 14 • General fund overhead costs included in this model include building occupancy charges and HR/personnel services.
15 Division overhead includes a portion of the following personnel time as well as a portion of division administration non-labor costs, both based on F lEs: division director, assistant division director, administration, program manager, finance officer, payroll/accounts payable, and human resource officer. 16 Other overhead costs include IT, telecommunications, finance, and property services. 17 Non -licensing revenue attributable to field operations include animal control violation penalties, charges for field pickup of deceased/owner relinquished animals, and fines for failure to license.

Document Dated 6-28-17 37
Shelter Services: Calculation of Budgeted Total Allocable Costs, Budgeted Total Non- Licensing Revenue, and Budgeted Net Allocable Costs
Cost
1 Direct Service Management Staff Costs $242,954
2 Direct Service Shelter Staff Costs $1,349,896
3 Direct Service Clinic Staff Costs $311,401
4 Overtime, Duty, Shift Differential and Temp Costs $121,686 5 Facilities Costs $151,916
6 Office and Other Operational Supplies and Equipment $145,166 7 Printing, Publications, and Postage $11,000
8 Medical Costs $150,000
9 Other Services 122,500
10 Transportation $13,132
11 Communications Costs $1,200
12 IT Costs and Services $99,009
13 Misc Direct Costs $70,300
14 General Fund Overhead Costs $83,923
15 Division Overhead Costs $207,655
16 Other Overhead Costs $6,550
2018 Budgeted Total Allocable Shelter Services Cost $3,088,288 17 Less 2018 Budgeted Total Non-Licensing Revenue
Attributable to Shelter Services
$128,200
8 2018 Budgeted Net Allocable Shelter Services Cost $2,960,088 The calculation of Pre-Commitment Estimated 2018 Shelter Services Costs is shown below.

NOTES:
5 Facilities costs include maintenance and utilities for the majority (95%) of the Kent Shelter (which also houses the call center staff operations and records retention as well as providing a base station for field officers).
6 This item includes the office supplies as well as a wide variety of non-computer equipment and supplies related to animal care (e.g., uniforms, food, litter, etc.). 7 This cost element consists of printing and publication costs for various materials used at the shelter.
8 Medical costs include the cost for ambulance and hospital care for animals requiring emergency services as well as the cost for consulting vets, laboratory costs, medicine, and vaccines.

Document Dated 6-28-17 38
9 Services for animal shelter operations vary by year but include costs such as shipping of food and sheltering of large animals.
10 Transportation costs include the cost of the maintenance, repair, and replacement of and fuel for the animal care and control vehicles used by the shelter to facilitate adoptions, as well as reimbursement for occasional job-related use of a personal vehicle. 11 Communication costs involve the direct service costs for telephone, cell phone and radio. 12 Information technology direct costs include IT equipment replacement as well as direct services costs.
13 Miscellaneous direct costs consist of all animal care costs not listed above including but not limited to contingency, training, certification, and bad checks. 14 General fund overhead costs included in this model include building occupancy charges and HR/personnel services. .
15 Division overhead includes a portion of the following personnel time as well as a portion of division administration non-labor costs, both based on FTEs: division director, assistant division director, administration, program manager, finance officer, payroll/accounts payable, and human resource officer.
16 Other overhead costs include IT, telecommunications, finance, and property services. 17 Non-licensing revenue attributable to sheltering operations include impound fees, microchip fees, adoption fees, and owner relinquished euthanasia fees.

Document Dated 6-28-17 39
Licensing Services: Calculation of Budgeted Total Allocable Costs, Budgeted Total Non- Licensing Revenue, and Budgeted Net Allocable Costs
• Cost
1 Direct Service Management Staff Costs $52,291
2 Direct Service Licensing Staff Costs $404,377
3 Overtime, Duty, Shift Differential and Temp Costs $7,742 4 Facilities Costs $14,000
5 Office and Other Operational Supplies and Equipment $3,300 6 Printing, Publications, and Postage $81,700
7 Other Services $37,109
8 Communications Costs $2,000
9 IT Costs and Services $76,424
10 Misc Direct Costs $1,966
11 General Fund Overhead Costs . $19,160
12 Division Overhead Costs $42,280
13 Other Overhead Costs $21,163
2018 Budgeted Total Allocable Licensing Services Cost $763,512 14 Less 2018 Budgeted Total Non-Licensing Revenue
Attributable to Licensing Services
$77,000
2018 Budgeted Net Allocable Licensing Services Cost $686,512 The calculation of Pre-Commitment Estimated 2018 Licensing Services Costs is shown below.

NOTES:
4 Facilities costs include maintenance and utilities for the portion of the King County Administration building occupied by the.pet licensing staff and associated records. 5 This item includes the office supplies required for the licensing call center. 6 This cost element consists of printing, publication, and distribution costs for various materials used to promote licensing of pets, including services to prepare materials for mailing.
7 Services for animal licensing operations include the purchase of tags and monthly fees for online pet licensing hosting.
8 Communication costs involve the direct service costs for telephone, cell phone, radio, and pager use.
9 Information technology direct costs include IT equipment replacement as well as direct services costs.
10 Miscellaneous direct costs consist of all pet licensing costs not listed above including but not limited to training, certification, transportation, and bad checks. 11 General fund overhead costs included in this model include building occupancy charges and HR/personnel services. .

Document Dated 6-28-17 40
12 Division overhead includes a portion of the following personnel time as well as a portion of division administration non-labor costs, both based on FTEs: division director, assistant division director, administration, program manager, finance officer, payroll/accounts payable, and human resource officer.
13 Other overhead costs include IT, telecommunications, finance, and property services. 14 Non -licensing revenue attributable to licensing operations consists of licensing late fees.

Document Dated 6-28-17 41
Exhibit C-4
Jurisdiction Transition Funding
Credit
Carnation $552
North Bend $1,376
Kent $110,495
SeaTac $7,442
Tukwila $5,255
Black Diamond $1,209
Covington $5,070
Enumclaw $11,188
Maple Valley $6,027
Calculation and Allocation of Transition Funding Credit ("TC"), and Shelter Credit ("S C")
A. Transition Funding Credit
The Transition Funding Credit as originally calculated in the 2010 Agreement offset costs to certain Contracting Cities that would have otherwise paid the highest per capita costs for Animal Services in 2010. The credit was scheduled on a declining basis over four years (2010-2013). In this Agreement, the Contracting Cities qualifying for this credit are listed in Table 1 below; these cities will receive the credit at the level calculated for 2013 in the 2010 Agreement for each Service Year, provided that, application of the credit can never result in the Estimated Payment Amount being less than zero ($0) (i.e., cannot result in the County owing the City an Estimated Payment). The allocation of the Transition Funding Credit is shown in Table 1 below.

Table 1: Transition Funding Credit — Annual Amount to be allocated each year Note: The Transitional Funding Credit is the same regardless of which cities sign the Agreement.

During Reconciliation, if a City receiving Transition Funding Credit is due a refund as a result of more revenue being collected than was anticipated in the Final Estimated Payment Calculation for the Service Year, the refund amount shall first be applied to reduce the Transition Funding Credit and Shelter Credit until reduced to zero, upon which any excess shall be used to adjust the City's net final cost until the Net Final Cost is zero.

B. Shelter Credit
The Shelter Credit is designed to offset costs for those Contracting Cities whose per capita average shelter intakes ("AA") exceed the average for all Contracting Parties. During the initial term of this Agreement, a total of $750,000 will be applied as a credit in each Service Year to Contracting Cities whose per capita average shelter intakes ("AA") exceeds the average for all Contracting Parties; provided that application of the Shelter Credit can never Document Dated 6-28-17 42
result in the Estimated Payment amount being less than zero ($0) (i.e., cannot result in the County owing the City an Estimated Payment.) The Shelter Credit shall be calculated' annually as part of the Final Estimated Payment Calculation provided prior to the Service year. The Shelter Credit shall be determined based on the City's relative per capita three (3) year average of animal intakes ("AA") in excess of the three (3) year average for all contracting parties for the same period. The County will consider providing the Shelter Credit in the second term at the same level as for the initial term.

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11,13.31,54/Pa pulaliani C red ii In he a pp Id: 750394 Table 3: Shelter Credit Allocation-2018
ROO on al An I0] al Se r1,1 ce 1 oT King omit
Proposed Credit Distribution (3Yr Average Intakes) (2016 Population) Numbers are es M mho coa5 /at 1-0 p updee ofred 215110 elletusellord Trd rasetle ta s0 ;17..1/corn e Rodebney are 5101001 la Conde 01110 depo151ore are u lderwmy. 93.51ern 510005 6 =la& ka by diuldhp Ile pm, °Teach Purl 5d1:10Y5 annul 51 0410 h bias cum. 505100 Ives yes perk& dluid ed 110 he h pc9 rA Inn,
' rimeeporadd Idng! emn5 In Irk es !Mud nor -RAG 1-, lakes.

Malan al MI rnal Bongo a of King Count.

Inirang
During Reconciliation, if a City receiving Shelter Funding Credit is due a refund as a result of more revenue being collected than was anticipated in the Final Estimated Payment Calculation for the Service Year, the refund amount shall first be applied to reduce the Transition Funding Credit and - Shelter Credit until reduced to zero, upon which any excess shall be used to adjust the City's net final cost until the Net Final Cost is zero.

Document Dated 6-28-17 43
Exhibit C-5:
[Intentionally Omitted]
Document Dated 6-28-17 44
Exhibit C-6:

Component Estimated 2018
Payment (final)
(published December 15
2017)
Reconciliation Payment
Amount
(determined by June 2019)
ELR
(Estimated
Revenue)
> of December 2016—
November 2017 just
prior to Service Year or
2016 Actual
Actual Licensing
Revenue 2018
ACFS
(Avg. Calls for
Service)
Three (3) year rolling
average (2014, 2015,
2016)
N/A
AA
(Avg. Animal
intakes)
Three (3) year rolling
average (2014, 2015,
2016)
N/A
ALI (Avg.

Licenses
Issued)
Three (3) year rolling
average (2014, 2015,
2016)
N/A
Pop,
(Population)
OFM April 2017,
adjusted for all
annexations ... 2,500
occurring (and
Same, adjusted for all
annexations >_ 2,500
occurring (and Latecomer
Cities joining) after April
Summary of Calculation Periods for Use and Population Components This Exhibit restates in summary table form the Calculation Periods used for calculating the usage and population components in the formulas to derive Estimated Payments. See Exhibit C for complete formulas and definitions of the formula components.

ELR is Estimated Licensing Revenue attributable to the City ACFS (Average Calls for Service) is the rolling three (3) year average number of Calls for Service originating in the City
AA (Average Animals) is the rolling three (3) year average number of animals in the shelter attributable to the City
ALI (Average Licenses Issued) is the Rolling three (3) year average number of active paid regular pet licenses issued to City residents
Pop is Population of the City expressed as a percentage of all Contracting Parties; Calculation Periods -- Service Year 2018
Document Dated 6-28-17 45
Calculation Periods: Service Year 2019 and subsequent Service Years Latecomer Cities joining) 2017 and before the end of
after April 2017 and
before the end of 2018
2018
Component Estimated (Service
Year)
Payment (published
December 15 prior to
Service Year)
Reconciliation
Payment Amount
(determined by June 30
following each Service
Year)
ELR > of December-
November just prior to
Service Year or
previous complete
calendar year
Actual Licensing
Revenue (Service Year)
ACFS Three (3) year rolling
average (2014, 2015,
2016)
N/A
AA Three (3) year rolling
average (2014, 2015,
2016)
N/A
All Three (3) year rolling
average (2014, 2015,
2016)
N/A
Pop, OFM April prior to prior
to Service Year, adjusted
for all annexations ?.
2,500 and/or Latecomer
Cities joining that are
known to take effect
prior to or during the
Service Year.

Same, adjusted for all
annexations z 2,500
and/or Latecomer Cities
joining, occurring prior
to or during the Service
Year.

If the Agreement is extended for a second term, calculated cost and reconciliation shall be developed in a manner comparable to Service Year 2019 as shown above.

Document Dated 6-28-17 46
Exhibit C-7
Payment and Calculation Schedule
Item Date
Final Estimated 2018 Payment calculation
provided to City by County
December 15, 2017
2018 Estimated Payment due August 15, 2018
2018 Reconciliation Adjustment Amount
calculated
On or before June 30, 2019
2018 Reconciliation Adjustment Amount
payable
On or before August 15, 2019
Item Date
Final Estimated 2019 Payment calculation
provided to City by County
December 15, 2018 (December 15 prior to
start of Service Year)
2019 Estimated Payment due August 15, 2019 (August 15 of Service Year 2019 Reconciliation Adjustment Amount
calculated
On or before June 30, 2020 (by June 30
immediately following the Service Year)
2019 Reconciliation Adjustment Amount
Payable
August 15, 2020 (by August 15 immediately
following the Service Year)
Notice of Intent by one or more of the
Parties to opt out of the automatic extension
for an additional five (5) year term.

June 30, 2021
Deadline for written agreement to
Contingent Extension (per section 4(b)
March 1, 2022
Service Year 2018
Service Year 2019 and subsequent years
The schedule is developed in the same manner as described above for all Service Years unless otherwise noted in the Agreement.

Additional timelines are in place to commence and complete negotiations for an extension of the Agreement:

See Section 4 of Agreement for additional details on Extension of the Agreement Term for an additional five (5) year term.

Dates for remittal to County of pet license Not less than monthly, 15 days following Document Dated 6-28-17 47
sales revenues processed by Contracting
Cities (per section 3.c)
the end of the calendar month.

Requests for Enhanced Licensing Support Services in a Service Year may be made at any time on or before December 1, prior to the Service Year, unless mutually agreed to by the County and City.

Document Dated 6-28-17 48
Exhibit D
Reconciliation
ANFCo =
Actual
Revenue +
Transition
Credit +
Shelter
Credit -
Cost
Allocation -
Other
Services
Charge

AR TC SC CA OSC
The purpose of the reconciliation calculation is to adjust payments made each Service Year by Contracting Parties to reflect actual licensing and non-licensing revenue, and various credits, as compared to the estimates of such revenues and credits incorporated in the Estimated Payment calculations, and to adjust for population changes resulting from annexations of areas with a population of over 2,500 (if any) and the addition of Latecomer Cities. To accomplish this, an "Adjusted Net Final Cost" ("ANFC") calculation is made each June for each Contracting Party as described below, and then adjusted for various factors as described in this Exhibit D.

As noted in Section 7 of the Agreement, the Parties intend that receipt of Animal Services should not be a profit -making enterprise. When a City receives revenues in excess of its costs under this Agreement (including costs of PAWS or other animal service providers, if applicable), such excess will be reinvested to reduce costs incurred by the County. The cost allocation formulas of this Agreement are intended to achieve this outcome.

Terms not otherwise defined here have the meanings set forth in Exhibit C or the body of the Agreement.

Calculation of ANFC and Reconciliation Adjustment Amount The following formula will be used to calculate the Reconciliation Adjustment Amount, which shall be payable by August 15. The factors in the formula are defined below. As described in paragraphs A and B, the subscript "0" denotes the initial calculation; subscript "1" denotes the final calculation.

ANFCo = AR + TC SC - CA - OSC
A. If ANFC0 0, i.e., revenues and credits are greater than costs (adding the cost factor "OSC" in the formula for Contracting Cities purchasing shelter services from PAWS (or other animal service providers) and/or purchasing Enhanced Control Services and/or Enhanced Licensing Support Services), then:

Document Dated 6-28-17 49
ANFC1= 0, i.e., it is reset to zero and the difference between ANFCo and ANFCI is set aside by the County (or, if the revenues are not in the possession of the County, then the gap amount is payable by the City to the County by August 15) and all such excess amounts from all Contracting Parties where ANFCo >_ 0 are allocated to the County to offset costs incurred by the County that are not included in the cost allocation model (excluding unincorporated area only costs). Contracting Parties for which ANFCo 0 do not receive a reconciliation payment.

B. If ANFCo < 0, i.e., costs are greater than revenues (without considering "W" for those Contracting Cities purchasing shelter services from PAWS,(or other animal service providers) Enhanced Control Services, and/or Enhanced Licensing Support Services), then the negative dollar amount is not "reset" and ANFClis the same as ANFCo.

C. If, ANFCi < Total Estimated Payments made in the Service Year, then the difference shall be paid by the County to the City no later than August 15, except that if a City is receiving a Transition Credit and/or a Shelter Credit, the difference shall be used to offset the Credit (s) until the Credit (s) are reduced to zero, at which point the remaining difference shall be paid by the County to the City; if ANFCT > Total Estimated Payments made in the Service Year, then the difference shall be paid by the City to the County no later than August 15.

Where:
"AR" is Actual Licensing Revenue, less refunds and rebates, attributable to the City, based on actual Licensing Revenues received from residents of the City in the Service Year. (License Revenue that cannot be attributed to a specific Party (e.g., License Revenue associated with incomplete address information), will be allocated amongst the Parties based on their respective percentages of total AR).
"TC" is the Transition Funding Credit, if any, for the Service Year. "SC" is the Shelter Credit, if any, for the Service Year. "OSC" Other Services Charge is the actual amount paid by a City receiving shelter services to PAWS (or other animal service providers) for such services during the Service Year, if any, plus the actual amount paid or owed by a City to the County for the purchase of Enhanced Control Services and/or Enhanced Licensing Support Services, during the Service Year, if any.

Document Dated 6-28-17 50
"CA" is the "Cost Allocation" as estimated for the Service Year for the provision of Animal Services allocated between all the Contracting Parties for the purposes of determining the Estimated Payment. The Cost Allocation is the sum of Estimated Control (EC) costs, Estimated Shelter (ES) costs, and Estimated Licensing (EL) costs calculated as described in Exhibit C.

Document Dated 6-28-17 51
Exhibit E
Enhanced Control Services Contract (Optional)
Between City of("City") and King County ("County")
The County will offer Enhanced Control Services to the City during the term of the Animal Services Interlocal Agreement, subject to the terms and conditions as described herein.

The provisions of this Contract are optional to both Parties and shall not be effective unless executed by both Parties.

A. The City may request services under two different options, summarized here and described in further detail below:

Option 1: for a period of not less than one year, the City may request service from an Animal Control Officer dedicated to the City ("Dedicated Officer"). Such service must be confirmed in writing through both Parties entering into this Enhanced Control Services Contract no later than August 15, unless waived by the County, of the year prior to the Service Year in which the service is requested.

Option 2: for a period of less than one year, the City may request a specified number of over-time service hours on specified days and time. Unlike Option 1, the individual officers providing the service will be determined by the County and may vary from time to time; the term "Dedicated Officer" used in the context of Option 2 is thus different than its meaning with respect to Option 1. Option 2 service must be requested no later than 60 days prior to the commencement of the period in which the service is requested, unless waived by the County.

The City shall initiate a request for enhanced service by completing and submitting Attachment A to the County. If the County determines it is able to provide the requested service, it will so confirm by completing and countersigning Attachment A and signing this Contract and returning both to the City for final execution.

B. The County will provide enhanced Control Services to the City in the form of an Animal Control Officer dedicated to the City ("Dedicated Officer") as described in Attachment A and this Contract.

1. Costs identified in Attachment A for Option 1 are for one (1) year of service beginning in 2018. Costs will be based on the budgeted annual cost for the service year for which the service is provided, and shall include the cost of the employee (salary, benefits), equipment (which shall not exceed 3,000 annually) Document Dated 6-28-17 52
and animal control vehicle for the employee's use). Costs are subject to adjustment each year.

2. Costs for Option 2 will be determined by the County each year based on its actual hourly overtime pay for the individual Animal Control Officers providing the service, plus mileage at the federal reimbursement rate. The number of . miles for which mileage is charged shall be miles which would not have been traveled but for the provision of the enhanced service.

3. Costs paid for enhanced services will be included in the Reconciliation calculation for each Service Year, as described in Exhibit D of the Agreement (see "Other Service Charges").

C. Services of the Dedicated Officer shall be in addition to the Animal Services otherwise provided to the City by the County through the Agreement. Accordingly, the calls responded to by the Dedicated Officer shall not be incorporated in the calculation of the City's Calls for Service (as further described in Exhibit C and D to the Agreement).

D. The scheduling of work by the Dedicated Officer will be determined by mutual agreement of the contract administrators identified in the Agreement, and (in the case of a purchase of service under Option 1) the mutual agreement of officials of other Contracting Cities named as contract administrators that have committed to sharing in the expense of the Dedicated Officer. In the event the parties are unable to agree on scheduling, the County shall have the right to finally determine the schedule of the Dedicated Officer(s).

E. Control Services to be provided to the City pursuant to this Enhanced Services Contract include Control Services of the type and nature as described under the Agreement with respect to Animal Control Officers serving in Control Districts, and include but are not limited to, issuing written warnings, citations and other enforcement notices and orders on behalf of the City, or such other services as the Parties may reasonably agree.

F. The County will provide the City with a general periodic calendar of scheduled service in the City, and a monthly report of the types of services offered and performed.

G. For Services purchased under Option 1: An FTE will be scheduled to serve 40 hour weeks, however, with loss of service hours potentially attributable to vacation, sick leave, training and furlough days, not less than 1600 hours per year will be provided.

Similarly, a half-time FTE will provide not less than 800 hours per year. The County shall submit to the City an invoice and billing voucher at the end of each calendar quarter, excepting that during the 4th quarter of each year during the term of this Document Dated 6-28-17 53
Contract, an invoice shall be submitted to the City no later than December 15th. All invoiced amounts shall be payable by the City within 30 days of the invoice date.

Alternatively, the City (s) and the County may agree to include the cost of the Enhanced Services into the Reconciliation process. Either way, if the costs are paid during the Service Year, they shall be credited as part of Reconciliation.

H. For Services purchased under Option 2: The County shall submit to the City an invoice and billing voucher at the end of each calendar quarter. All invoiced amounts shall be payable by the City within 30 days of the invoice date. Alternatively, the City (s) and the County may agree to include the cost of the Enhanced Services into the Reconciliation process. Either way, if the cost are paid during the Service Year, they shall be credited as part of Reconciliation.

I. The City or County may terminate this Enhanced Services Contract with or without cause upon providing not less than 3 months written notice to the other Party; provided that, if the City has purchased services under Option 1 and is sharing the Enhanced Control Services with other Contracting Cities, this Contract may only be terminated by the City if: (1) all such other Contracting Cities similarly agree to terminate service on such date, or (2) if prior to such termination date another Contracting City or Cities enters into a contract with the County to purchase the Enhanced Control Service that the City wishes to terminate; provided further: except as provided in Paragraph A. Option 1, a Contract may not be terminated if the term of service resulting is less than one year.

J. All terms of the Agreement, except as expressly stated otherwise in this Exhibit, shall apply to this Enhanced Control Services Contract. Capitalized Terms not defined herein have those meanings as set forth in the Agreement.

IN WITNESS WHEREOF, the Parties hereto have caused this Enhanced Services Contract to be executed effective as of this day of 201_.

King County City of
By: By:

Date Date
Document Dated 6-28-17 54
Exhibit E: Attachment A

ENHANCED CONTROL SERVICES OPTION REQUEST
(to be completed by City requesting Enhanced Control Services; final service terms subject to adjustment by County and agreement by City and will be confirmed in writing executed and appended to Enhanced Control Service Contract/Exhibit E) City
Requested Enhanced Control Services Start Date:

Requested Enhanced Control Services End Date:
*term of service must be at least one year, except if purchasing services under Option 2.

Please indicate whether City is requesting services under Option 1 or Option 2:

Option 1:
% of Full Time Equivalent Officer (FTE) requested:
requests must be in multiples of either 20% or 25%)
(minimum request: 20%;
Option 2:

Overtime Hours purchase from existing ACO staff: hours per (week /month) General Description of desired services (days, hours, nature of service):

For Option 1:

Contracting Cities with whom the City proposes to share the Enhanced Control Services, and proposed percentages of an FTE those Cities are expected to request:

On behalf of the City, the undersigned understands and agrees that the County will attempt to honor requests but reserves the right to propose aggregated, adjusted and Document Dated 6-28-17 55
variously scheduled service, including but not limited to adjusting allocations of service from increments of 20% to 25%, in order to develop workable employment and scheduling for the officers within then-existing work rules, and that the City will be allowed to rescind or amend its request for Enhanced Control Services as a result of such proposed changes.

Option 1- Example 1:

Aggregate of 50% of an FTE Requested by
all Participating Cities
Optionl - Example 2:

Aggregate of 1 FTE Requested by all
Participating Cities
Cost to City: (% of Half-Time FTE Cost to City: ( % of FTE requested) x requested) x $69,182/year in 2018 118,152/year in 2018* Example: if City A requests 25% of an Example: If City A requests 25% of an FTE FTE ** and City B requests 25% of an and City B requests 25% of an FTE and FTE**, then each city would pay $17,295for City C requests 50% of an FTE, Cities A Enhanced Control Services from July 1, and B would pay $14,769and City C would 2018 through December 31, 2018 (6 pay $29,538 for Enhanced Control Services months). from July 1, 2018 through December 31,
2018 (6 months)
**(50% of a Half-Time FTE)
Requests that cannot be combined to equal 50% of an FTE, 100% of an FTE, or some multiple thereof may not be honored. Service must be requested for a minimum term of one-year, except as permitted by Paragraph A. Option 1. .Service may not extend beyond the term of the Agreement.

City requests that alone or in combination with requests of other Contracting Cities equal at least 50% of an FTE will be charged at the rate in Column 1 below.

City requests that alone or in combination with other requests for Enhanced Control Services equal 100% of an FTE will be charged at the rate in Column 2 below.

Cities may propose a different allocation approach for County consideration.

An FTE will be scheduled to serve 40 hour weeks, however, with loss of hours potentially attributable to vacation, sick leave, training and furlough days, a minimum of 1600 hours per year will be provided. A half-time FTE will provide a minimum of 800 hours per year.

For example, a commitment to purchase 20% of an FTE for enhanced service will result in provision of not less than 320 hours per year..

Hours of service lost for vacation, sick leave, training and furlough days will be allocated on pro rata basis between all Contracting Cities sharing the services of that FTE. * This example is based on 2018 budgeted costs. Costs will be based on actual Service Year budgeted costs.

Document Dated 6-28-17 56
For Option 2:

On behalf of the City, the undersigned understands and agrees that the County will confirm what services, if any, it can provide, and at what costs, by completing this Attachment A, and the City must signify whether it accepts the County's offer by signing the Enhanced Services Contract.

Request Signed as of thisday of
City of
By:

Its
To be completed by King County:
, 201_.

Option 1: The County hereby confirms its ability and willingness to provide Enhanced Control services as requested by the City in this Attachment A, with adjustments as noted below (if any):

The FTE Cost for the Service Year in which the City has requested service is:

Option 2: the County confirms its ability to provide control service overtime hours as follows (insert description—days/hours):

Such overtime hours shall be provided at a cost of $, (may be a range) per service hour, with the actual cost depending on the individual(s) assigned to work the hours, plus mileage at the federal reimbursement rate.

King County
By:

Its
Date:

Document Dated 6-28-17 57
Exhibit F
Enhanced Licensing Support Services - Terms of Service (Optional) The County is prepared to offer Enhanced Licensing Support Services to the City subject to the terms and conditions described herein, between a City and the County having executed the Enhanced Licensing Support Services Agreement and Acknowledgement form ("Acknowledgement"). The provisions of this Exhibit are optional and shall not be effective unless this Exhibit is executed by both the City and the County and both parties have entered into the underlying Animal Services Interlocal Agreement (the "Agreement").

A. Service Requests, Submittal: Requests for the County to provide Enhanced Licensing Support Services should be made by submitting the Enhanced Licensing Support Services Acknowledgment form (Attachment A to this Exhibit F) to the County between June 30 and December 1 of the calendar year prior to year in which such services are requested ("Service Year"). A separate Acknowledgment shall be submitted for each Service Year, unless specified otherwise in the Acknowledgement between the City and the County. The Acknowledgement form shall identify the Revenue Target (the amount of licensing revenue estimated to be gained through Enhanced Licensing Support Services) requested by the City.

B. County to Determine Service Availability: The County will determine whether it has capacity to provide the requested service based on whether it has staff and other resources available, and consistent with the priorities stated in Section 7.c of the Agreement. The County may adjust the Licensing Revenue Target based on the capacity of the County to fulfill the requested service.

C. Services Provided by County, Cost: The County will determine the Enhanced Licensing Support Service activities it will undertake to achieve the Licensing Revenue Target. Activities may include, but are not limited to canvassing, mailings, calls to non-renewals. In completing Attachment A to confirm its ability to provide Enhanced Licensing Support Services to the City, the County shall identify the cost for such service for the applicable Service Year or years if more than one year is requested. If the City accepts the County's proposed costs, it shall so signify by countersigning Attachment A.

D. Services Provided by City: Active participation by the City is an important success factor in the overall pet licensing process. The City may, at the City's additional cost, Document Dated 6-28-17 58
engage in the following activities to help enhance the overall effectiveness of the marketing effort:

1. Include inserts regarding animal licensing in bills or other mailings as may be allowed by law, at the City's cost. The County may provide the design for the insert and coordinate with the City to deliver the design on an agreed upon schedule.

2. Dedicate volunteer/staff hours to help follow up on pet licenses that are not renewed.

3. Provide representation at local public events to inform City residents about the Animal Services Program and promote pet licensing.

4. Inform City residents about the Animal Services Program and promote pet licensing utilizing print and electronic media including the city's website, social media, community brochures and newsletter ads/articles, signage/posters and pet licensing applications in public areas of city buildings and parks.

5. Appoint a representative to serve on the Joint City-County Collaboration Committee marketing subcommittee; this representative shall attend the quarterly meetings of the subcommittee and help shape and apply within the City the joint advertising strategies developed by consensus of the subcommittee.

E. Selection of Licensing Revenue Target (RT) and Payment for Enhanced Licensing Revenue Support:

1. For all Contacting Cities: The City will identify a proposed Licensing Revenue Target (RT) in Attachment A. The County may propose an alternate Revenue Target. If the Parties agree upon a Licensing Revenue Target, the County shall identify its annual cost to provide service designed to achieve the target. County cannot verify and does not guarantee a precise level of Licensing Revenues to be received by the City as a result of these services. At Reconciliation, the City shall be charged for Enhanced Licensing Support Services an amount not to exceed the cost specified and agreed to in Attachment A (the "Licensing Revenue Charge"), regardless of the amount of Licensing Revenue received by the City during the Service Year (see Exhibit D of the Agreement for additional detail).

F. Other Terms and Conditions:

1. Before January 31 of the Service Year, for each City contracting for Enhanced Licensing Support Services, the County shall submit an Enhanced Licensing Support Services Marketing Plan for the upcoming season. The Marketing Plan Document Dated 6-28-17 59
shall generally identify the various activities, scope, and scheduling to be performed. The City and County shall mutually agree on the Marketing Plan.

2. Each Party will provide the other with a periodic report of the services performed during the Service Year.

3. Either Party may terminate this Contract with or without cause by providing not less than a two (2) week advance written notice to the other Party; provided that all County costs incurred to the point of termination remain chargeable to the City as otherwiSe provided.

4. All terms of the Agreement, except as expressly stated otherwise herein, shall apply to this Contract, and Capitalized Terms not defined herein have the meanings as set forth in the Agreement.

G. Execution of Enhanced Licensing Support Services Agreement and Acknowledgment Form
Unless otherwise amended in writing, the Terms of Service noted above, if agreed, shall be documented and acknowledged by the City and County by mutually executing the Enhanced Licensing Support Services Agreement and Acknowledgment form (Exhibit F, Attachment A)
Exhibit F: Attachment A
ENHANCED LICENSING SUPPORT SERVICES AGREEMENT and

ACKNOWLEDGEMENT FORM
Final terms subject to adjustment by County and agreement by City confirmed in writing, executed and appended to the Enhanced Licensing Support Services Terms of Service —Exhibit F of the Animal Services Interlocal Agreement for 2018 Through 2022 ("the Agreement") dated effective as of July 1, 2017.)

1. City Date of Request:

2. Enhanced Licensing Support Services for Service Year:

3. Licensing Revenue Target (the amount by which the City seeks to increase its revenues in the Service Year): $

4. Contact person who will coordinate City responsibilities associated with delivery of Enhanced Licensing Support Services:

Name:

Title:

Phone:

Email:

Document Dated 6-28-17 60
To be completed by King County:

The County agrees to provide the City Enhanced Licensing Support Services in Service Yearintended to generate $(the "Licensing Revenue Target") in additional Licensing Revenue for a total Service Year cost of $, some or all of which cost may be charged to the City in calculating the Enhanced Licensing Support Services Charge, as further described in the Enhanced Licensing Support Services — Terms of Service and Exhibit D of the Agreement.

IN WITNESS WHEREOF, the Parties hereto have caused this Contract for Enhanced Licensing Support Services to be executed, per the terms as specified in the Enhanced Licensing Support Services — Terms of Service, effective as of thisday of, 20_.

King County City of
By: By:

Date: Date:

Document Dated 6-2847 61
Policy
820
Elk Grove Police Department
Policy Manual
Copyright Lexipol, LLC 2017/02/24, All Rights Reserved.

Published with permission by Elk Grove Police Department Animal Control - 1
Animal Control
820.1 PURPOSE AND SCOPE
The purpose of this policy is to establish guidelines for interacting with animals and responding to calls for service that involve animals.
820.1.1 POLICY
It is the policy of the Elk Grove Police Department to be responsive to the needs of the community regarding animal-related issues. This includes enforcing local, state and federal laws relating to animals and appropriately resolving or referring animal-related problems, as outlined in this policy. 820.2 ANIMAL CONTROL OFFICER RESPONSIBILITY
The Animal Control Officer (ACO) is assigned tasks necessary for the day-to-day responsibilities of ensuring the safety of the public, the welfare of all animals, and rabies control. The Animal Control Supervisor will schedule the Animal Control Officer’s assigned working hours. During hours when the ACO is on-duty, requests for animal control services shall be assigned by the Communication Center (Dispatch), Animal Control Supervisor, or Patrol Sergeant or Watch Commander. Requests for assistance by the ACO shall be acknowledged and responded to promptly. Animal control services are generally the primary responsibility of the Animal Control Officers and include:
(a) Animal-related matters during periods when Animal Control is available. (b) Ongoing or persistent animal nuisance complaints. Such complaints may be scheduled, if reasonable, for handling during periods that Animal Control is available for investigation and resolution.
(c) Follow-up on animal-related calls, such as locating owners of injured animals. (d) Host and provide testimony in and for dangerous and vicious animal hearings. 820.3 FIELD SERVICE EMPLOYEE RESPONSIBILITY
During hours when the Animal Control Officer is off-duty, or if the ACO is otherwise unavailable, the following animal related calls for service will be handled by the appropriate on-duty officer.

Field Service employees may be dispatched to animal related calls and should take appropriate actions to control the situation until the arrival of an ACO. Due to the hazards of handling animals without proper equipment, responding Field Service employees generally should not attempt to capture and pick up any animal, but should keep the animal under observation until the arrival of the ACO. The following are examples of when a Field Service employee may consider acting before the arrival of the ACO:
(a) When there is a threat to public safety.
(b) When an animal has bitten someone, Field Service employees should take measures to confine the animal and prevent further injury. If the animal is domestic, Field Service employees should take available measures to locate the owner of the animal.

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(c) When an animal is creating a traffic hazard.
(d) When a non-domesticated animal is inside a residence (this does not include garage, attic, or chimney flue).
(e) When an aggressive/dangerous animal that has physically attacked and injured a human, has been located, and no owner is on scene.
(f) When the owner/handler has been arrested and there is no other alternative placement for the animal.
(g) When the animal is gravely injured.

The Watch Commander or Field Supervisor may contact the Animal Services Supervisor for assistance with information or having an ACO respond from home if the situation dictates. 820.3.1 ANIMAL CRUELTY COMPLAINTS
Field Service employees shall conduct a preliminary investigation on all reports of animal cruelty and forward the information to the ACO for follow-up if they are not on scene at the time. Field Service employees shall not hesitate to take any immediate actions deemed necessary for the welfare of the animal. The assistance of an Animal Control Officer should be requested to assist with the investigation when appropriate for the purpose of handling the disposition of any animal(s) associated with the case. Care for the animal should be taken to protect them from further harm or injury.

Field Service employees shall investigate reported crimes against animals, and consult with Animal Services for assistance in determining suspected violations. An ACO should be contacted through Dispatch, a Watch Commander, a Sergeant on duty, or the Animal Services Supervisor when the ACO is not on duty. If there is a chance that a suspect, or person responsible for the cruelty or crime against an animal, is still on scene, a sworn officer shall make the first contact at the location.

Other considerations for the investigation include:
(a) Photographs and specific descriptions of the animal(s). (b) Immediate medical care and assessment of the injury. (c) Referral to the City's contracted veterinarian if the injuries need immediate care. (d) Photograph and evidence tag deceased animals for storage in the freezer inside the Property and Evidence Bureau.
820.3.2 STRAY DOGS
If the dog can be identified through licensing, microchipping, or personal identification, the owner should be contacted if possible. If the owner is contacted, the dog should be released to the owner and a citation may be issued if appropriate. If the owner cannot be found, Field Service employees should not transport the dog unless otherwise directed by the patrol Sergeant or Watch Commander when an ACO is not available. Field Service employees shall not house the animal at any of the Police Department facilities.

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While on duty, the ACO shall respond to all calls for service for stray dogs. The ACO will handle all transportation of stray dogs. At no time will the ACO house or board a stray dog at any of the Police Department facilities, or overnight in any ACO vehicle. All stray dogs will be transported to the County Animal Shelter as soon as practicable but always before the end of their respective shift. The only exception to this will be when the County Animal Shelter is not accepting stray animals.

All employees shall provide reasonable treatment to animals in their care (e.g., food, water, shelter).
820.3.3 ANIMAL BITE REPORTS
In the event an ACO is unavailable to respond, Field Service employees shall obtain as much information as possible for forwarding to Animal Services for follow-up. Field Service employees shall instruct the owner of a biting animal, if contacted, to keep the animal confined on the property until contacted by the ACO. If the animal is a stray, then every effort shall be made to immediately confine the animal and locate the owner. In cases where the injuries are severe, the Field Service employee should consider taking pictures of all injuries and collect any evidence that will not be preserved if left at the scene.

If there are any questions regarding a bite investigation, the Animal Control Supervisor should be contacted through the Communication Center. An ACO may be called upon to respond to the scene.

During hours when the ACO is on-duty, the ACO will make contact with the victim and the animal’s owner (if known). The ACO will determine if a quarantine is required and where the animal(s) should be held. The quarantine period shall be ten (10) days, beginning the date and time of the bite. The animal owner has the option of having the animal humanely euthanized and tested by the County of Sacramento Health Department for rabies.

Care should be taken when handling animals involved in a bite. This shall include the use of gloves and thorough washing of the hands and areas that may have come in contact with the animal involved in the bite. Deceased animals involved in a bite incident shall be placed in a plastic bag for transport and never frozen. Refer to Animal Services or any ACO for appropriate storage. 820.3.4 PUBLIC NUISANCE CALLS RELATING TO ANIMALS
In the event an ACO is unavailable to respond to an animal nuisance call for service, Field Service employees shall obtain and forward to the ACO as much information as possible regarding the nature of the complaint, complaining person, owner information (if possible), location of problem, etc. Field Service employees will also document any actions taken; citation(s) issued, related report numbers, etc.

In the event responding Field Service employees cannot fulfill urgent requests for service because the animal is difficult or dangerous to handle, the Patrol Sergeant or Watch Commander may request the assistance of an Animal Control Officer.

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All requests to call in the ACO must be approved through a field supervisor or Watch Commander, and then by the ACO Supervisor or their designee. 820.3.5 BARKING DOGS
For the purpose of this policy, a barking dog is a dog that disrupts the peace by continuously and incessantly barking, howling, crying, yelping, baying, or making any other noise at any time during the day or night to the disturbance of any other person. Pursuant to Elk Grove Municipal Code section 8.01.020(6)(f) “Continuous and incessant” is defined as frequent barking, howling, crying, yelping, baying, or any other noise of ten (10) minutes or more duration within a thirty (30) minute period; provided, that at the time of the complaint no person or persons were trespassing or threatening to trespass upon the private property of the owner or the animal was not being teased or provoked in any manner. Pursuant to Municipal Code 8.02.180A Public Nuisance Prohibited. “It is unlawful for any person to keep, have upon premises owned, occupied, or controlled by him or her within the City, any animal found to be a public nuisance as defined by this title." All barking dog complaints shall be forwarded to Animal Control for processing and investigation. 820.3.6 LEASH LAW ENFORCEMENT
Leash law requirements include investigations based on response to citizen complaints or while performing regular patrol duties and observing a dog off leash. Pursuant to Elk Grove Municipal Code section 8.02.060 “No person owning any dog, or having the care, custody, control, or possession of any dog shall suffer, allow, or permit such dog to run, be, or remain at large on any public street, road, alley, park, square, school, or other public place or upon any private property other than the property of the owner or custodian."
The ACO on-duty shall respond to calls for service involving leash law violations. Requirements for dogs being off leash can be enforced by an ACO or police officer while doing regular patrol duties within the City. The enforcement of the leash law can result in a warning or Notice to Appear Citation.
820.4 DECEASED ANIMALS
Deceased animals on public property will be removed and properly disposed of by the ACO.

All deceased animals may be placed in the compartment in the ACO’s vehicle designated for deceased animals. Reasonable attempts should be made to preliminarily determine if the death of the animal is related to criminal activity. If the owner can be identified, they shall be advised of the final disposition of the animal.

For health and sanitary reasons, deceased animals should be placed in a sealed plastic bag prior to placing in the ACO vehicle. Large animals and skunks shall be double bagged and placed inside the ACO vehicle. All deceased animals shall be transported to the County Animal Shelter prior to the end of any given shift.

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Elk Grove Police Department employees will not be required to climb onto or under any privately owned structure for the purpose of removing a deceased animal. 820.5 INJURED OR SICK ANIMALS
When any Elk Grove Police Department employee becomes aware of an injured domesticated animal, all reasonable attempts shall be made to contact the owner or responsible handler. If an owner or responsible handler cannot be located, the animal shall be taken to a City contracted veterinary hospital. Pursuant to Penal Code 597.1, notice to the owner shall be given.

The only exception to the above is when the animal is an immediate danger to the community or the owner of the animal is identified and takes responsibility for the injured animal. If the owner is not identified, and the animal cannot be moved or causes a danger to the community, the animal can be disposed of with the approval of the Watch Commander.

Each incident shall be documented and, at minimum, include the name of the reporting party and veterinary hospital and/or person to whom the animal is released. If the ACO is off duty, the information will be forwarded for follow-up.
820.5.1 RESCUE OF ANIMALS IN VEHICLES
If an animal left unattended in a vehicle appears to be in distress, Elk Grove Police Department employees may enter the vehicle for the purpose of rescuing the animal. Members should (Penal Code § 597.7(d)):
(a) Make a reasonable effort to locate the owner before entering the vehicle. (b) Take steps to minimize damage to the vehicle.
(c) Refrain from searching the vehicle or seizing items except as otherwise permitted by law. (d) Leave notice on or in the vehicle identifying the location where the animal has been taken and the name and Department of the member involved in the rescue. (e) Make reasonable efforts to contact the owner or secure the vehicle before leaving the scene. (f) Take the animal to an animal care facility, a place of safekeeping or, if necessary, a veterinary hospital for treatment.
820.5.2 INJURED WILDLIFE
Injured wildlife should be transported to the County Animal Shelter for medical evaluation or euthanization, as applicable, for the well-being of the animal. 820.6 ANIMAL OWNER ARRESTED OR INCAPACITATED
Field Service employees and ACO's should make a reasonable effort to ensure that animals or pets under a person’s care will be provided with adequate care when that person is arrested or leaves for medical treatment. This is only required when there is no person to provide care and the arrestee, victim, or injured owner is expected to be in custody at the jail, in the hospital or other medical facility for a time period longer than would reasonably allow him/her to properly care for the animals.

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With the owner's consent, relatives or neighbors may be contacted to care for the animals. If no persons can be found or the owner does not consent, an ACO will respond to take animals into custody.

In all situations, the animal owner should be informed where the animal(s) are being taken and of possible fees associated with the impoundment.
820.7 AGGRESSIVE OR DANGEROUS ANIMALS
This section provides guidelines for responding to aggressive/dangerous behavior by domestic animals toward both humans and/or other animals. This type of reported behavior is a priority call for the ACO and Field Service employee.

Pursuant to Elk Grove Municipal Code section 8.06.040 a dangerous animal is defined as any animal, except a dog assisting a peace officer engaged in law enforcement duties, which demonstrates any of the following behavior:
(a) Any animal that chases or approaches any person or domestic animal, anywhere other than on the property of the owner or custodian, in a menacing fashion or apparent attitude of attack, including, but not limited to, behavior such as growling or snarling. (b) Any animal which, when unprovoked, engages in any behavior that requires a defensive action by any person to prevent bodily injury when the person and the animal are off the property of the owner or keeper of the animal.
(c) Any animal which, when unprovoked, bites a person causing a less severe injury than as defined in EGMC Section 8.06.020(D).
(d) Any animal which, when unprovoked, has killed, seriously bitten, inflicted injury, or otherwise caused injury attacking any other animal off the property of the owner or keeper of the animal.

Pursuant to Elk Grove Municipal Code section 8.06.050 a vicious animal is defined as any animal, except a dog assisting a peace officer engaged in law enforcement duties, which demonstrates any of the following behavior:
(a) Any animal which, when unprovoked, in an aggressive manner, inflicts severe injury on or kills a human being, in a place where such person is conducting himself or herself peacefully and lawfully.
(b) An animal which has been trained to fight or which is owned or harbored for this purpose. (c) Any animal previously determined to be and currently listed as a dangerous animal which, after its owner or keeper has been notified of this determination, continues the behavior described in EGMC Section 8.06.040 or this section, or is maintained in violation of EGMC Section 8.06.110. [Ord. 4-2013 §6, eff. 4-12-2013; Ord. 7-2009 §3, eff. 5-1-2009; Ord. 48-2008 §3, eff. 11-7-2008].

Animal Control Officers will respond to aggressive animal calls 24-hours per day, 7-days per week. When an ACO is not on-duty, the Watch Commander, Sergeant on duty, or Animal Control Supervisor will request the on-call ACO respond.

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Police officers may be the first responders on these incidents and should request an ACO through the Communication Center. If the response from an ACO is delayed for any reason, the scene should be treated and investigated as any other felony crime scene and all standards of evidence gathering and preservation shall be employed.

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Extended Animal Care & Control Concerns – Nuisance Livestock and Wildlife
Guideline Statement
It is a logical extension of an animal care and control agency's responsibilities to provide a reasonable response to nuisance livestock and nuisance wildlife complaints, providing it is budgeted properly for such duties. Agencies providing such services should have their personnel attend proper training for such duties.

Basis for Guideline
The public served will most often contact animal care and control agencies for assistance and/or referral on livestock or wildlife problems. The agency's ability to respond will serve to enhance its value in the community and provide a safe alternative to public involvement concerning this type of call.

Guideline Recommendation
Animal care and control agencies should establish programs with appropriate agencies to determine respective responsibility in handling particular nuisance complaints. Such programs will require sometimes costly, specialized equipment. Housing responsibility, if any, should be established. Animal care and control personnel should receive adequate training in the proper capture and handling of such animals.

The aforementioned Guideline has been affirmed as duly adopted by the NACA Board of Directors on September 03, 2014.

George W. Harding, IV MBA CAWA
Executive Director
National Animal Care & Control Association

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Personnel Training and Safety – Safety and Wellness
Guideline Statement
The field of animal care and control is a difficult and sometimes dangerous profession.

Animal care and control personnel should be provided the necessary training and equipment to fulfill their duties and also to ensure their safety on the job. In addition, those personnel should be encouraged to maintain an optimum level of physical fitness so as to minimize their risk of being injured while on the job.

Basis for Guideline
Personnel in the animal care and control profession face a variety of risks while conducting their jobs, some of which are within their control and some of which are not.

The most obvious risks are those that are encountered on a daily basis, specifically dealing with animals and/or people. Fearful, un-socialized or aggressive animals and combative, uncooperative people put animal care and control personnel at risk every day. Other, less obvious risk factors, however, may also threaten the safety and wellness of the employee. In order to minimize the risks to the animal care and control personnel, training and the proper equipment must be provided.

While training and equipment may help to reduce the risk of injury or harm to an animal care and control employee, that employee also has an obligation to maintain their physical and mental health and well-being. A healthy diet, the elimination of smoking and alcohol, and a physical fitness regimen will help to ensure the employee stays on the job for years to come. Agencies should also ensure that their personnel have access to confidential counselling to help deal with the stress of the profession.

Guideline Recommendations
Animal care and control staff should be provided with training in the areas detailed below. In addition, in order to ensure the continued safety and well-being of the employees, these trainings should be provided on a regular basis to the animal care and control personnel. They should also be encouraged to pursue Continuing Education (C.E.) courses in these areas or in other areas applicable to their job description and duties.
• AED (Automated external defibrillator)
• Animal behavior (on all species)
• Animal handling/restraint (on all species)
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• Back safety/lifting techniques
• Baton/Asp/Bite stick
• Compassion fatigue
• Confined spaces
• CPR (Cardiopulmonary resuscitation)
• Defensive driving
• Disaster response
• Distracted driving
• Ergonomics
• First aid (Human and Pet)
• Hazardous materials
• Livestock/large animal handling
• Officer safety
• PPE (Personal protective equipment)
• Radio usage
• Scene assessment
• Self-defense
• Slackwater safety
• Stress management
• Swiftwater safety
• Tactical Operations (Search warrants/hoarding cases)
• Technical rescues
• Vehicle and equipment maintenance/safety
• Verbal judo
• Wildland fire safety
• Wildlife
• Zoonotics
The aforementioned Guideline has been affirmed as duly adopted by the NACA Board of Directors on May 29, 2015.

George W. Harding, IV MBA CAWA
Executive Director
National Animal Care & Control Association

1 AGREEMENT BETWEEN THE COUNTY OF SAN MATEO AND

THE CITIES OF ATHERTON, BELMONT, BRISBANE, BURLINGAME,

COLMA, DALY CITY, EAST PALO ALTO, FOSTER CITY, HALF MOON BAY,

HILLSBOROUGH, MENLO PARK, MILLBRAE, PACIFICA, PORTOLA

VALLEY, REDWOOD CITY, SAN BRUNO, SAN CARLOS, SAN MATEO,

SOUTH SAN FRANCISCO, AND WOODSIDE FOR FACILITATION AND

COORDINATION OF ANIMAL CONTROL SERVICES

THIS FACILITATION AND COORDINATION OF ANIMAL CONTROL
SERVICES AGREEMENT, hereinafter called “Agreement”, entered into this first day of July, 2021, by and between the COUNTY OF SAN MATEO, hereinafter called “County,” and Atherton, Belmont, Brisbane, Burlingame, Colma, Daly City, East Palo Alto, Foster City, Half Moon Bay, Hillsborough, Menlo Park, Millbrae, Pacifica, Portola Valley, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and Woodside, each hereinafter individually called a “City” and collectively called the “Cities”;

WITNESSETH
WHEREAS, the Cities have passed and are responsible for enforcing local ordinances governing the regulation, licensing and impounding of certain animals within the territorial limits of the Cities; and WHEREAS, the Cities and County, hereinafter collectively called “Parties”, wish to enter into a written agreement for animal care and control, shelter services, and animal licensing, in which the County agrees to facilitate provision of and the Cities agree to reimburse the County for the costs of specified animal care and control, shelter services, and animal licensing hereinafter set forth, as they have done for over 70 years with the current Agreement expiring on June 30, 2021; and
WHEREAS, in order to facilitate coordinated countywide system of animal care and control, shelter services, and animal licensing as desired by Cities, County is agreeable to facilitating the provision of such services on the terms and conditions as hereinafter set forth; and
WHEREAS, the Cities desire the County facilitate and coordinate animal control and licensing on a countywide basis on behalf of the Cities and County for a term of 5 years ending on June 30, 2026; and
2 WHEREAS, such agreements are authorized and provided for by Section 51300, et seq. of the California Government Code and under the Parties respective police powers.

NOW, THEREFORE, IT IS HEREBY AGREED BY THE PARTIES
HERETO AS FOLLOWS:

1. Exhibits and Attachments
The following exhibits are attached to this Agreement and incorporated into this Agreement by this reference:

Exhibit A— Contract Areas
Exhibit B— Proportionate Share of Cost
Attachment 1 – Agreement between County of San Mateo and the Peninsula Humane Society and SPCA
Attachment 2 - Agreement between County of San Mateo and PetData Inc.

Attachment 3 - Memorandum of Agreement Regarding Funding For Construction Of An Animal Care Shelter

2. Definitions

2.1 Administrative Costs: The actual costs, including, but not limited to, salaries, benefits, dispatch, and equipment maintenance,incurred by the County to administer the Animal Control Program and Animal Licensing Program as outlined in this Agreement in an effort to facilitate a coordinated countywide system.

2.2 Animal Control Contractor:Thecontractor selected as set forth in Section 5.2of this Agreement, which is specifically charged with providing services and enforcing laws relating to h animal care and control, shelter services and animal licensing within the territorial limits of the County and the Cities and pursuant to the terms of this Agreement.

2.3 Animal Control Program:The program within the Health System of the County, or County’s designated contract agent, or both, or such other agency as the County of San Mateo Board of Supervisors may designate, which is specifically charged with regulating and enforcing laws dealing with animal control within the territorial limits of the County.

2.4 Animal Control Services Agreement or Services Agreement:

Agreement in which the Animal Control Contractor agrees to perform on behalf of Parties and the County agrees to compensate, using County and City funds, the Animal ControlContractor for performance of certain 3 specified animal care, animal control, and shelter services asprovided for in this Agreement.

2.5 Animal Licensing Contractor:The contractor as set forth in Section

5.2 of this Agreement, which is specifically charged with administering and enforcing laws dealing with animal licensing within the territorial limits of the County and the Cities and pursuant to the terms of this Agreement.

2.6 Animal Licensing Program:The program within the Health System of the County, or County‘s designated contract agent, or both, or such other agency as the County of San Mateo Board of Supervisors may designate, which is specifically charged with regulating and enforcing laws dealing with animal licensing within its jurisdiction.

2.7 Animal Licensing Services Agreement:Agreement in which the Animal Licensing Contractor agrees to perform on behalf of the Parties and the County agrees to compensate, with County and City funds, Animal Licensing Contractor for performance of certain specified animal licensing services as provided for in this Agreement.

2.8 City or Cities:Any or all of the cities listed in Exhibit A, attached and incorporated by reference herein.

2.9 Holidays:Federally designated holidays with the addition of Easter and exclusion of Columbus Day, in accordance with the Animal Control Contractor’s and Animal Licensing Contractor’s existing labor contracts.

2.10 Impounded Animal:An animal that has been picked up byAnimal Control Contractor, other public employee or officer,or by a private citizen and deposited at the County animal shelter.

3. Each City’sResponsibilities

3.1 Delivery of Animals. Any animal taken into custody by an employee or officer of the County or an employee or officer of aCity shall be delivered to the Animal Control Contractor at the County animal shelter or held in a humane way at a designated holding area until it can be picked up by Animal Control Contractor.

3.2 Uniform Ordinances and Citation Authority.This Agreement is based on an expectation that each City will adopt and maintain animal control ordinance(s) which aresubstantially the same as the provisions of Chapters 6.04, 6.12, and 6.16 of Title 6 of the San Mateo County Ordinance Code, as they currently exist or maybe amended by County from time to time, to be effective within each City’s territorial limits.The 4 fee schedule adopted by each City shall be thesame as outlined in Chapter 6.04.290, as may be amended by County from time to time, of the San Mateo County Ordinance Code, hereinafter “County Ordinance”.

City acknowledges that the County plans to amendits animal control ordinances, with the goal for adoption within the next twelve (12) months.

Enforcement of provisions of any City’s ordinance to the extent that it differs substantially from the County Ordinance, as amended by County from time to time, and results in an increase to Animal Control Contractor’s costs, shall be reimbursed directly by the City requiring additional services, as negotiated between the City requiring additional services and the Animal Control Contractor. Provision of services under the Animal Control Services Agreement shall take priority over such additional services provided separately pursuant to this Section.

3.3 Designation of Animal Control & License Revenue Collector.Each City hereby designates the Health System of the County or County’s designated contractor as the entity authorized to collect, at Cities’ cost, animal control and licensing revenue on the part of each City.

3.4 Permits for Public Events.Each City shall request input from the Animal Control Contractor prior to issuing permits for public exhibitions and events which include animals. TheAnimal Control Contractor is entitled to recover costs directly from the City in which exhibition or event will be located which relate to staffing that may result during or after the exhibition or event. Such costs will be collected by the Animal Control Contractor based on a fee schedule approved by the City in which the event is taking place, or as agreed between the Animal Control Contractor and the individual City. Any agreement with the Animal Control Contractor will require expeditious review of permits and input to the City. The provisions of this paragraph do not apply to public exhibitions and events where the only animals included in such events are anticipated to be service animals or police dogs.

3.5 City Liaison.Each City shall designate a representative to act as a liaison for animal control and licensing administration and enforcement issues for when County requests input from the City.If no contact person is designated, the City contact person shall be the City Manager.

3.6 Defense of Dangerous/Vicious Animal Determinations, Spay/Neuter Requirements, and Service Animal Designations.

Parties acknowledge that each City is and will remain solely responsible for arranging and conducting hearings under its Dangerous and Vicious 5 Animal, Spay/Neuter, and Fancier Ordinances, including but not limited to providing hearing officers and a location for the hearings. The cost to hold the hearing will be the sole responsibility of each City and collection of the hearing fee, based on the City’s fee ordinance, will be collected and retained by the City.

However, the Parties agree that, at aCity’s option and for its convenience, a City may utilize County offices and/or the services of the Countyhearing officers for purposes of conducting Dangerous/Vicious Animal Hearings under the provisions of each City’s Dangerous and Vicious Animal Ordinance, Spay/Neuter Hearings under the provision of each City’s Spay/Neuter Ordinance, and/or Fancier Hearings under the provision of each City’s Fancier Ordinance. The hearing fee, based on the City’s fee ordinance, will be collected from the person requesting the hearing by the County under the terms of this Agreement, if possible. If such fee is not collected, the City shall remain responsible for such costs.

The Parties also recognize that in the event a City elects to utilize the services of a County hearing officer, the City remains solely responsible for the defense of any appeal of or challenge to an administrative decision rendered by the hearing officer. Further, the City remains responsible for any claims, damages, costs or other losses resulting from any decision, act or omission of the hearing officer acting in the course and scope of his or her capacity as hearing officer or from any court judgment based on claims, actions or appeals resulting from Dangerous/Vicious Animal hearings, decisions or findings; Spay/Neuter requirements, hearings, decisions or findings; and/or Fancier requirements, hearings, decisions or findings made under each City’s ordinances.

Furthermore, the Parties agree that, at aCity’s option and for its convenience, County offices will issue Service Animal tags and Breeder/Fancier Permits on behalf of each City upon County’s determination that such tag or permit shall be issuedon behalf of the City. Each City shall remain responsible for the decision to issue or not issue a Service Animal tag and/or issue or not issue a Breeder or Fancier Permit and shall remain responsible the defense of any action or claim and payment of any claims, damages, costs, or other losses resulting from such decision.

3.7 In consideration of the services that will be coordinated and facilitated by County and provided by the Animal Control Contractor and Animal Licensing Contractorin accordance with all terms, conditions, and specifications set forth herein, and in the exhibits and attachments incorporated by reference herein, each City shall pay County based on 6 the rates and in the manner specified below.

Proportionate Share of Costs.Each City’s proportionate share of the cost of services (“Proportionate Share of Costs”) provided under this Agreement shall be calculated as a percentage representing:
a. That City’s percentage of total field services provided, averaged over the prior three calendar years;
b. That City’s percentage of total shelter services provided, averaged over the prior three calendar years;
c. With field services weighted at 41% and shelter services weighted at 59%.

Net Program Costs.Each City shall pay the net program costs attributable to that City (“Net Program Costs”) which will be calculated as follows:
a. Determine total expenses for all services including Administrative Costs as defined in Section 2 of this Agreement and Animal Control Contractor and Animal Licensing Contractor costs;
b. Subtract all revenue received, not including licensing revenue; c. Attribute the balance to each City based on that City’s Proportionate Share of Costs.
d. Subtract from each City’s share of the balance the actual licensing revenue collected for that City during the previous calendar year.

Annual Invoices.Each City will be invoiced for its Net Program Costs as follows:
a. The County will calculate each City’s Proportionate Share of Costs, estimate Net Program Costs for the following fiscal year (July 1 – June 30), and will send an estimated invoice containing that information to each City no later than March 31stof each year; b. The County will send a final invoice (“Final Invoice”) based on actualNet Program Cost to each City no later than December 15th of each year; and
c. Each City shall pay the County the amount shown on the Final Invoice no later than February 28thof each year.
7 4. County Responsibilities

4.1 Payments to be paid to Animal Control Contractor and Animal Licensing Contractor by the County and each City are as follows:
a. The County will pay Animal Control Contractor the following agreed-to 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
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 contract Petdata for approximately $192,000).

Current Contract
2016-2021
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

4.2 The County shall provide the administrativeservices as outlined in this Agreement for the following estimated amountsto 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 only be invoiced for the actual costs to provide said services as 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
8 4.3 In consideration of the payment provided for in Sections 3.7 and 4.2, the County shall, for the administrative convenience of the Cities and for the purpose of coordinating animal services countywide, provide the additional following administrative services:
a. Work with the City Attorney, designated City liaisonor City Manager of each City on any issues that require input from the City, including, but not limited to, during and following the administrative hearing process.
b. Collect, maintain, and report available data as requested by each City, including, but not limited to, annual Performance Measures.

The Animal Control Program Manager or designee will monitor the performance of the Animal Control Contractor and Animal Licensing Contractorand will notify the City Liaison if there is a deficiency in service found.A meeting will be scheduled with Contractor and City liaisons to discuss a plan to correct the service deficiency.
c. With direction from each City, respond on behalf of eachCity to public inquiriesregarding the Animal Control Program and the Animal Licensing Program.
d. Provide monthly report showing field, shelter, licensing activities, and Dangerous Animal Permit holders.
e. Provide dispatch services for after-hours/holiday calls for animal control and licensing.
f. Provide radio maintenance services on radio equipment owned by the Parties and used to perform services as outlined in Attachment 1 – Agreement between County of San Mateo and the Peninsula Humane Society and SPCA – Attachment M - County-Owned
Radio Equipment.
g. For the convenience of the Cities, provide animal licensing tags for dogs, cats, animals held under a Dangerous Permit, and animals designated as Service Animals.
h. For the convenience of the Cities, make reasonable attempts to collect and provide collection services for:

1. Animal control fees that are deemed uncollectable by the Animal Control Contractor after reasonable efforts by the Contractor to collect; and
9 2. Licensing fees that are deemed uncollectable by the Animal Licensing Contractor after reasonable efforts by the Contractor to collect; and

3. Any other fees for services provided to each City under the terms of this Agreement.

The County’s cost to provide collection services will be included in the administrative cost to facilitate this Agreement. The Cities acknowledge and agree that the County is not responsible for any fees that remain uncollected after reasonable efforts are made to collect. In the event that a City determines that additional collection efforts are warranted, it may undertake such efforts at its own expense. Any shortfall in revenues caused by uncollected fees shall be the responsibility of all Cities based on the proportionate share of costs.
i. Annually provide each City with the audit report required and completed as outlined in Attachment 1.
j. Annually, arrange and oversee a performance auditor fiscal assessment following the, Generally Accepted Government Auditing Standards (GAGAS) to assess whether the Animal Control Contractor is achieving efficiency and effectiveness in performance of the services provided and provide a copy of the performance audit to the Cities. The parameters of the audit and cost will be determined by a subgroup of all Parties through a County Request for Proposal process. Cities will be invoiced for the actual cost of said audit as outlined in Section 3.7 (estimate cost of $81,000 has been added to the administrative cost table in section 4.2). k. For Spay/Neuter Assistance Vouchers:

1. Allocate one dollar from each annual license fee paid for a dog or cat to:
i. When funds are available as determined by the County, assist pet owners and feral cat advocates with the cost to alter the dogs, cats, and feral cats that reside in the County on a county wide basis; and
ii. As funds are available as determined by the County, execute outreach efforts to educate residents on the
responsibilities of owning a pet and the importance of
altering, vaccinating, and licensing all dogs and cats.

2. Issue, monitor and maintain a dog, cat, and feral cat database, allocating funds to the appropriate category of need based on the public’s requests.
10 l. Pursuant to Section 3.6 of this Agreement, under the guidelines of the US Department of Justice and the Americans With Disabilities Act’s definition of “Service Animal” for the administrative convenience of each City, and acting as a representative of each City, issue Service Animal tags on behalf of each City upon determination by the County on behalf of the City that such tag shall be issued.
m. If each City’s ordinance so authorizes and theCity so requests, review and process each City residents’ requests and maintain files for Breeders and Fanciers Permits.
n. Dangerous Animal Designations:

1. Issue Dangerous Animal tags when an animal has been so designated by a peace officer employed by any City or County or the Animal Control Contractor as such; and

2. The County will invoice annually and make reasonable efforts to collect applicable fees for Dangerous Animal Permit holders; and

3. Monitor data received from Animal Control Contractor; and

4. Send monthly updated reports to each City’s representative. o. Pursuant to Section 3.6, for the administrative convenience of each City, and acting as a representative of each City, conduct administrative hearings for Dangerous and Vicious Animal designations under the guidelines of the applicable City’s ordinance.
p. Pursuant to Section 3.6, for the administrative convenience of each City and acting as a representative of each City, conduct mandatory spay/neuter and/or fancier permit administrative hearings under the guidelines of the applicable City’s ordinance, if any.
q. Provide in-person customer service at a minimum of two County locations that are open during normal business hours to enable residents the ability to obtain animal licenses and/or permits for all dogs and cats.
r. Work with San Mateo County veterinarians to ensure anti-rabies vaccination reporting as required by the County.

s. Receive, import, and export licensing and vaccination information from the Animal Licensing Contractor into the Animal Control Contractor database and vice versa on a weekly basis.
11 t. Under the guidance of the County’s Health Officer, review and process requests from pet owners to exempt their pet from the requirement to obtain an anti-rabies vaccination as required by State law or County ordinance and report annually to the Department of Public Health.
u. Invoice animal owners pursuant to the County Fee Schedule

6.04.290, and similar City fee schedules, following a bite incident that requires a quarantine of said animal.

5. General Provisions

5.1 Existing Agreements.Upon execution of this Agreement, any prior existing agreements between the Cities and the County to facilitate and coordinate Animal Control and Animal Licensing Services will be terminated.

5.2 Contracting for Services.It is expressly understood and agreed that the County will contract with the Peninsula Humane Society and SPCA, a California nonprofit public benefit corporation(Animal Control Contractor), or such other contractor as the Board of Supervisors and Cities may designate, for the provision of Animal Control Services including field enforcement, shelter and treatment services referred to herein. Additionally, it is expressly understood and agreed that the County will contract with PetData, Inc. or such other contractor (Animal Licensing Contractor) as the Board of Supervisors and Cities may designate, for the provision of Animal Licensing Services.

Shelter Services.Refer to Attachment 1 – Agreement between County of San Mateo and the Peninsula Humane Society and SPCA.

Field Services.Refer to Attachment 1 – Agreement between County of San Mateo and the Peninsula Humane Society and SPCA.

Veterinary Medical Services.Refer to Attachment 1 – Agreement between County of San Mateo and the Peninsula Humane Society and SPCA.

Operations.Refer to Attachment 1 –Agreement between County of San Mateo and the Peninsula Humane Society and SPCA.

5.3 Animal Shelter.

The Parties acknowledge:

1. That the new Animal Care and Control Shelter has been constructed and Contractor Peninsula Humane Society & SPCA is and will be occupying it for the term of this Agreement in order to provide animal 12 control services as set forth in Attachment 1.

2. The Parties have previously entered into a Memorandum of Agreement regarding Funding of Construction of an Animal Care Shelter, dated September 9, 2014 (“Memorandum”), attached and incorporated as Attachment 3. The Parties agree that the total cost of the shelter construction project is being updated as provided by Section 2 of the Memorandum, and the Parties agree that, when available, County will provide to Cities the final total cost of the Shelter construction which will be paid proportionately by each City as provided by the Memorandum. Further, the Parties acknowledge and agree that the proportionate share of each City will be amended as provided by section 3 of the Memorandum. The Parties acknowledge that continued animal control and shelter services to a City as provided herein is contingent on that City approving any amended cost and paying its proportionate share, as previously agreed in the Memorandum”.

5.4 Facilities & Equipment.
a. If the County chooses, at its own discretion, to replace equipment, at reasonable expense, but not to exceed $125,000, that is used by the Animal Control Contractor and/orthe Animal Licensing Contractor solely for the purpose of providing services under this Agreement, Cities agree that they will be financially responsible for the purchase cost of said equipmentbased on their
Proportionate Share of Cost.

In the event that any party asserts that an emergency safety- related repair is needed to the portions of the County Animal Care and Control Shelter located at 12 Airport Boulevard in the City of San Mateo that are used to provide contracted animal control services and/or the Countychooses to replace
equipment, at its own discretion, and the cost of said equipment exceeds $125,000, the Parties agree to meet in good faith to determine and agree which maintenance or repairs are required, whether or not such repair work shall be undertaken, or if said equipment should be replaced.

If the Parties terminate this Agreement or the Parties do not renew this Agreement, all Parties agree to be financially responsible in their Proportionate Share of Cost as set forth in Exhibit B for the remaining cost of any lease for vehicles or equipment used by the County’s designated contractor solely for the purpose of providing services under this Agreement. 13 b. Animal Control Contractor will send the County a quarterly itemized report showing the repairs and maintenance performed at the facility.
c. If Parties choose to terminate for reasons other than material breach of the Animal Control Contractor’s Services Agreement or Parties choose not to renew the Animal Control Contractor’s Services Agreement, County and Cities shall be financially responsible for the remaining cost of any lease for vehicles or equipment used by the Animal Control Contractor solely for the purpose of the Animal Control Contractor’s Services Agreement.

5.5 Fiscal and Program Monitoring.Each City agrees to participate annually with County to discuss financial or programmatic issues including, but not limited to, licensing activities, revenue sources, performance measures, and ordinance revisions.The County or any City may request a special meeting for this purpose and upon the provision of reasonable notice.

Any changes in the amount to be paid to the Animal Control Contractor or the Animal Licensing Contractor shall require the Board of Supervisors and the affected City’s approval.

5.6 Use of Program Revenue.EachCity agrees that all fees collected by the County and/or the Animal Control Contractor and the Animal Licensing Contractor,or both, for the purposes outlined in this Agreement shall be retained by the County and used to cover the cost of services provided under this Agreement, except for services provided directly by or for a City and where fees are collected by said City for services provided as described in Section 3.4 and 3.6 of this Agreement.

5.7 Maintenance of Records.Records of animals impounded including the description of each animal, date of receipt, date and manner of disposal, treatment received, the name of the person redeeming or adopting the animal, and the fees, charges and proceeds of adoption shall be maintained by the County, through the Animal Control Contractor, and made available to the Cities.In addition, statistical information shall be provided on a monthly, quarterly and annual basis to the Cities summarizing various field enforcement and shelter activities occurring in each City and shelter activities initiated by residents of each City.

5.8 Term and Termination. Subject to compliance with all terms and 14 conditions, the term of this Agreement shall be from July 1, 2021 through June 30, 2026.

Except as otherwise provided by this section, this Agreement may not be terminated by any party during the effective period from July 1, 2021 through June 30, 2026.Each City is responsible for its annual percentage share under this Agreement for the entire term of this Agreement.

In the event any City fails to pay its percentage share as set forth in this Agreement and Exhibit B, every otherCity shall promptly pay its Proportionate Share of Cost of the non-payment, unless and until the County is able to recover the non-payment from the late or non-paying City.

This Agreement shall automatically terminate in the event of termination of the Animal Control Services Agreement. Upon termination, the County shall have no further obligation to provide, facilitate or coordinate services specified herein or in the Animal Control Services Agreement or Animal Licensing Services Agreement.

Each City shall promptly pay its Proportionate Share of Costas set forth in Exhibit B for all services rendered prior to termination.

5.9 Amendments: Entire Agreement. Amendments to this Agreement must be in writing and approved by the County Board of Supervisors and the governing body of each City. This is the entire Agreement between the Parties and supersedes any prior written or oral agreements inconsistent herewith.

This Agreement, including the Exhibits and Attachments which are incorporated herein by this reference, constitutes the entire Agreement of the Parties to this Agreement regarding the subject matter of this Agreement, and correctly states the rights, duties, and obligations of each party as of the Effective Date.In the event that any term, condition, provision, requirement, or specification set forth in the body of this Agreement conflicts with or is inconsistent with any term, condition, provision, requirement, or specification in any Exhibit to this Agreement, the provisions of the body of this Agreement shall prevail.

Any prior agreement, promises, negotiations, or representations, whether oral or written, between the parties not expressly stated in this Agreement are superseded.All subsequent modifications or amendments to this Agreement shall be in writing and signed by the Parties.

5.10 Controlling Law and Venue.The validity of thisAgreement and of its terms or provisions, the rights and duties of the parties under this 15 Agreement, the interpretation of this Agreement, the performance of this Agreement, and any other dispute of any nature arising out of this Agreement shall be governed by the laws of the State of California without regard to its choice of law rules. Any dispute arising out of this Agreement shall be venued either in the San Mateo County Superior Court or in the United States District Court for the Northern District of California.

5.11 Additional Services. Nothing contained herein shall preclude any City from contracting separately for the provision of a higher level of service.

Any contract increasing the level of services will be supplemental to this Agreement and will not affect the level of service provided for in this Agreement.

5.12 Relationship of Parties.The Parties agree and understand that the work/services performed or facilitated under this Agreement are performed or facilitated by an independent Contractor, and not by an employee of any City and that neither the County, its employees, the Animal Control Contractor, or the Animal Licensing Contractor acquire any of the rights, privileges, powers, or advantages of City employees, and vice versa; however, the County may act as an agent on behalf of each City where expressly set forth herein and, in such instances, each City shall hold harmless, indemnify and defend the County from and against any claims of any kind and/or actions for damages arising out of the County’s actions undertaken on behalf of each City as set forth herein.

5.13 Hold Harmless.
a. Each City shall hold harmless, indemnify and defend the County, its officers, employees and agents from and against any and all claims, suits or actions of every kind brought for or on account of injuries or death of any person or damage to any property of any kind whatsoever and whomsoever belonging which arise out of the performance or nonperformance of each City’s covenants and obligations under this Agreement and which result from the negligent or wrongful acts of each City or its officers, employees, or agents, including, but not limited to, those claims, suits, or actions arising from activities performed by the County as a representative of the City as set forth in Sections 3.6 and 4.2. b. The County shall hold harmless, indemnify and defend each City, its officers, employees and agents from and against any and all claims, suits or actions of any kind brought for or on account of injuries to or death of any person or damage to any property of any kind and to whomsoever belonging which arise out of the performance or non-performance of the County’s obligations 16 under this Agreement and which result from the negligent or wrongful acts of the County, its officers or employees. This provision requiring the County to hold harmless, indemnify and defend each City shall expressly not apply to claims, losses, liabilities or damages arising from actions or omissions, negligent or otherwise, of the Animal Control Contractor or the Animal Licensing Contractor, or theirofficers, employees or agents, under the services agreements with the County.Further, this provision requiring the County to hold harmless, indemnify and defend each City shall not apply to acts or omissions of the County done on behalf of each City in performing administrative tasks for the convenience of and as representative of each City, including but not limited to those set forth in Sections 3.6 and

4.2. c. In the event of concurrent negligence of the County, its officers or employees, and the City, its officers and employees, the liability for any and all claims for injuries or damages to persons and/or property or any other loss or costs which arise out of the terms, conditions, covenants or responsibilities of this agreement shall be apportioned according to the California theory of comparative negligence.
d. Notwithstanding anything in this Agreement to the contrary, the Parties acknowledge that with respect to activities performed by the Animal Control Contractor or the Animal Licensing Contractor in the Cities’ territorial limits, the County serves solely as a Contract Administrator and solely with respect to the specific obligations contained within this Agreement and the agreements between the County and the Animal Control Contractor and the Animal Licensing Contractor.Accordingly, in the event the County or the Cities are sued and the suit is related in any manner to actions taken by the Animal Control Contractor or the Animal Licensing Contractor solely in a particular City or the Cities, the particular City or Cities, as the case may be, will hold harmless, indemnify and defend the County, and any other City that is named as a defendant in that suit from and against any and all claims, losses or costs. In the event a City or the Cities are sued and the suit relates in any manner to actions taken by the Animal Control Contractor or the Animal Licensing Contractor solely in the unincorporated area of the County, the County will hold harmless, indemnify and defend the City or Cities named as a defendant or defendants in that suit from and against any and all claims, losses or costs.
e. The County agrees that in itsService Agreements with the Animal 17 Control Contractor, the County will require the Animal Control Contractor to indemnify each City to the same extent that the County is indemnified and to name each City as a third party beneficiary to the County’s Agreements with the Animal Control Contractor and/or the Animal Licensing Contractor.
f. These indemnification and hold harmless clausesshall survive termination of this Agreement and shall apply whether or not any insurance policies shall have been determined to be applicable to any of such damages or claims for damages.

5.14 Non-Discrimination.No person shall illegally be excluded from participation in, denied the benefits of, or be subjected to discrimination under this Agreement on account of their race, color, religion, national origin, age, gender, sexual orientation, ancestry, marital status, pregnancy, childbirth or related conditions, medical condition, mental or physical disability or veteran’s status.

5.15 Notices.Any notice, request, demand, or other communication required or permitted under this Agreement shall be deemed to be properly given when both: (1) transmitted via facsimile to the telephone number listed below or transmitted via email to the email address listed below; and (2) sent to the physical address listed below by either being deposited in the United States mail, postage prepaid, or deposited for overnight delivery, charges prepaid, with an established overnight courier that provides a tracking number showing confirmation of receipt.

Any notices required by or given pursuant to this Agreement to any City shall be in writing and shall be delivered to the Clerk of that City at the address of the principal business offices of the respective City listed in the introduction of this Agreement or at such other address as any City may specify in writing to the County.

In the case of County, to:

Name/Title: Lori Morton-Feazell, Program Manager of Animal Control and Licensing
Address: 225-37thAvenue San Mateo, CA 94403
Telephone: 650.573.2623
Email: [email protected]

5.16 Condition Precedent.If this Agreement is not adopted by all twenty Cities, it will become null and void in its entirely except that in such an event, the County and any of the cities which are in agreement with the terms and conditions of this Agreement may use it as the grounds for considering an Agreement which may be acceptable to those parties. 18 5.17 Electronic Signature. All Parties agree that this Agreement and future documents relating to this Agreement may be digitally signed in accordance with California law and the County’s Electronic Signature Administrative Memo and the Parties understand and agree that electronic signatures shall be deemed as effective as an original signature.

5.18 Counterparts.The Parties may execute this Agreement in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument. 19 IN WITNESS WHEREOF, the Board of Supervisors of the County of San Mateo has authorized and directed the Health System Chief to execute this Agreement for and on behalf of the County of San Mateo. The Cities of Atherton, Belmont, Brisbane, Burlingame, Colma, Daly City, East Palo Alto, Foster City, Half Moon Bay, Hillsborough, Menlo Park, Millbrae, Pacifica, Portola Valley, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and Woodside have caused this Agreement to be subscribed by its duly authorized officer and attested by its Clerk.

Dated: COUNTY OF SAN MATEO
____________ _____________
President, Board of Supervisors
Dated:

ATTEST: TOWN OF ATHERTON
_________________________________
Town of Atherton, Clerk By
Dated:

ATTEST: CITY OF BELMONT
_________________________________
City of Belmont, Clerk By
5/26/2021

Shawnna Maltbie
City Manager
May 25, 2021

Dated:

ATTEST: CITY OF FOSTER CITY
_________________________________
City of Foster City, Clerk By

Dated:

ATTEST: CITY OF HALF MOON BAY
_________________________________
City of Half Moon Bay, Clerk By

Dated:

ATTEST: CITY OF MENLO PARK
_________________________________
City of Menlo Park, Clerk By

Dated:

ATTEST: TOWN OF PORTOLA VALLEY
_________________________________
Town of Portola Valley, Clerk By

Dated:

ATTEST: CITY OF SAN CARLOS
_________________________________
City of San Carlos, Clerk By

Dated:

ATTEST: CITY OF SAN MATEO
_________________________________
City of San Mateo, Clerk By
_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

40 EXHIBIT A

CONTRACT AREAS
The following Cities have contracted for services pursuant to this Agreement:

Atherton
Belmont
Brisbane
Burlingame
Colma
Daly City
East Palo Alto
Foster City
Half Moon Bay
Hillsborough
Menlo Park
Millbrae
Pacifica
Portola Valley
Redwood City
San Bruno
San Carlos
San Mateo
South San Francisco
Woodside
41 EXHIBIT B

PROPORTIONATE SHARE OF COST
FY 2021-22 Proportionate Share of Cost:

Atherton 0.70%
Belmont 2.58%
Brisbane 0.90%
Burlingame 3.74%
Colma 0.53%
Daly City 10.13%
East Palo Alto 8.70%
Foster City 2.15%
Half Moon Bay 2.50%
Hillsborough 1.16%
Menlo Park 4.59%
Millbrae 1.92%
Pacifica 5.07%
Portola Valley 0.37%
Redwood City 12.55%
San Bruno 6.09%
San Carlos 3.15%
San Mateo 15.61%
South San Francisco10.27%
Woodside 1.03%
County 6.27%
1 Agreement No. _________________________

AGREEMENT FOR ANIMAL CARE AND CONTROL SERVICES BETWEEN THE

COUNTY OF SAN MATEO AND PENINSULA HUMANE SOCIETY & SPCA, A

CALIFORNIA NONPROFIT CORPORATION
This Agreement is entered into this first day of July, 2021, by and between the County of San Mateo, a * * *
Whereas, pursuant to statutory authority including but not limited to, Section 31000 of the California Government Code, Section 31106 of the Food and Agriculture Code, and Sections 14501 and 14503 of the Corporations Code, County may contract with independent contractors for the furnishing of animal care, control and shelter services to or for County or any Department thereof; and Whereas, it is necessary and desirable that Contractor be retained for the purpose of providing Animal Care, Control, and Shelter services to the County and participating cities as set forth in this Agreement for Therefore, it is agreed by the parties to this Agreement as follows:

1. Exhibits and Attachments
The following exhibits and attachments are attached to this Agreement and incorporated into this Agreement by this reference:

Exhibit A Services
Exhibit B - Payments and Rates
Exhibit CExcluded Services
Exhibit D Contract Areas (County and Participating Cities) Exhibit E Fees to be Collected for Services Provided
Exhibit F Five-Year Budget
Attachment H - Health Insurance Portability and Accountability Act (HIPAA) Business Associate Requirements
Attachment I - Fingerprinting Certification Form
Attachment J - Rabies Algorithm
Attachment K - Animal Shelter Facility Use and Maintenance Agreement Attachment L - Peninsula Humane Society Holidays
Attachment M County-Owned Radio Equipment

2. Services to be performed by Contractor
In consideration of the payments set forth in this Agreement and in Exhibit B, Contractor shall perform services for County and Participating Cities listed on Exhibit D in accordance with the terms, conditions, and specifications set forth in this Agreement and in Exhibit A, and the other Exhibits and Attachments incorporated by reference into this Agreement.
2 3. Payments
In consideration of the services provided by Contractor in accordance with all terms, conditions, and specifications set forth in this Agreement and in Exhibit A and other Exhibits and Attachments incorporated into this Agreement, County shall make payment to Contractor based on the rates and in the manner specified in Exhibit B. Payments shall begin within 45-days after Contractor and County each execute this Agreement.

County reserves the right to withhold payment if County determines that the quantity or quality of the work performed is unacceptable. If County exercises this right, it must first provide Contractor with a 30-day written notice of intent to withhold payment wherein County describes the nature of the unacceptable If Contractor fails to
remedy unacceptable work after having received thirty days prior written notice, then County may delay payment until the deficiency is corrected. However, if Contractor reasonably demonstrates that it is not feasible to remedy the unacceptable work within thirty days, Contractor shall have up to an additional thirty days to remedy the work before payment will be withheld.

In no event shall C THIRTY TWO MILLION

FIVE HUNDRED FORTY EIGHT THOUSAND NINE HUNDRED EIGHTY NINE DOLLARS AND NINETY ONE CENTS ($32,548,989.91). In the event that the County makes any advance payments, Contractor agrees to refund any amounts in excess of the amount owed by the County at the time of contract termination or expiration. Contractor is not entitled to payment for work not performed as required by this Agreement.

4. 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 for an additional three years if the parties 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 agreement for animal control services between the County and 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.

5. Termination
This Agreement may be terminated by Contractor or County or designee at any time without a advance written notice to the other party. Contractor shall be entitled to receive payment for services provided prior to the effective date of termination of the Agreement. Such payment shall be the prorated portion of the full payment determined by comparing the services actually completed to the services required by the Agreement. The Contractor shall have no right to or claim against the County or any Participating City for the balance of the contract amount.

In the event of a material breach of this Agreement by either party, the other party shall notify the breaching party of such material breach and that such breach must be cured within thirty (30) calendar days of the notice, except that if the breaching party reasonably demonstrates that it is not feasible to cure the breach within thirty (30) calendar days, the breaching party shall have the number of days 3 beyond thirty (30) calendar days reasonably needed to cure the breach up to an additional thirty (30) calendar days.

In the event the breaching party does not cure the material breach within the applicable time period, the notifying party may immediately terminate this Services Agreement or seek any other applicable legal remedies for such material breach. Termination is effective on the date specified in the written notice. In any event of termination under this paragraph, Contractor shall be paid for all approved work performed prior to termination. Contractor shall have no right to, or claim against County or any contracting City for, the balance of the contract amount.

6. Contract Materials
At the end of the term of this Agreement, or in the event of termination, all finished or unfinished documents, data, studies, maps, photographs, reports, and other written materials (collectively referred to become the property of County and shall be promptly delivered to County. Upon termination, Contractor may make and retain a copy of such contract materials if permitted by law.

7. Relationship of Parties
Contractor agrees and understands that the work/services performed under this Agreement are performed as an independent contractor and not as an employee of County and that neither Contractor nor its employees acquire any of the rights, privileges, powers, or advantages of County employees.

8. Hold Harmless and Indemnification
Contractor shall hold harmless and indemnify the County, and each Participating City listed in Exhibit D as third party beneficiaries of this Agreement, their officers, agents, and employees from all claims, suits or actions of every name, kind and description, brought for, or on account of: injuries to or death of any person, including but not limited to Contractor or its agents, officers or employees, or damage to property of any kind whatsoever and to whomsoever belonging, including but not limited to Contractor or its agents, officers, or employees, or any other loss or cost, resulting from the performance or nonperformance of any work or obligations required by the Agreement of Contractor; any sanctions, requirements set forth in the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and all Federal regulations promulgated thereunder, as amended; and/or from any activities undertaken by Contractor, its officers, employees or agents, under this Agreement, and which result from the negligent or intentional acts or omissions of Contractor, its officers or employees.

The duty of Contractor to hold harmless and indemnify as set forth herein, shall include the duty to defend as set forth in Section 2778 of the California Civil Code.

County shall hold harmless and indemnify the Contractor, its officers, agents, and employees from all claims, suits or actions of every name, kind and description, brought for, or on account of injuries to or death of any person, including but not limited to County or its agents, officers or employees, or damage to property of any kind whatsoever and to whomsoever belonging, including but not limited to County or its agents, officers, or employees, or any other loss or cost, resulting from the performance or nonperformance of any work or obligations required by the Agreement of County; any sanctions, pe
requirements set forth in the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and all Federal regulations promulgated thereunder, as amended; and/or from any activities undertaken by County, its officers, employees or agents, under this Agreement, and which result from the negligent or intentional acts or omissions of County, its officers or employees.

4 The duty of County to hold harmless and indemnify, as set forth herein, shall include the duty to defend as set forth in Section 2778 of the California Civil Code.

In the event of concurrent negligence of the County, its officers, agents and/or employees, and the Contractor, its officers, agents and/or employees, then the liability for any and all claims for injuries or damages to persons and/or property or any other loss or costs which arise out of the terms, conditions, covenants, promises and responsibilities of this Agreement, shall be apportioned according to the California theory of comparative negligence. This provision shall survive termination of this Agreement.

9. Assignability and Subcontracting
Contractor shall not assign this Agreement or any portion of it to a third party or subcontract with a third party to provide services required by Contractor under this Agreement without the prior written consent of County.
right to automatically and immediately terminate this Agreement without penalty or advance notice.

10. Insurance
a. General Requirements
Contractor shall not commence work or be required to commence work under this Agreement unless and until all insurance required under this Section has been obtained and such insurance has been approved such approval. Contractor shall furnish County with certificates of insurance evidencing the required to include the contractual liability assumed by Contractor pursuant to this Agreement. These certificates shall specify or be endorsed to provide
any pending change in the limits of liability or of any cancellation or modification of the policy. b.

Contractor shall have in
In signing this Agreement, Contractor
certifies, as required by Section 1861 of the California Labor Code, that (a) it is aware of the provisions of Section 3700 of the California Labor Code, which require every employer to be insured against liability for -insurance in accordance with the provisions of the Labor Code, and (b) it will comply with such provisions before commencing the performance of work under this Agreement.
c. Liability Insurance
Contractor shall take out and maintain during the term of this Agreement such bodily injury liability and property damage liability insurance as shall protect Contractor and all of its employees/officers/agents while performing work covered by this Agreement from any and all claims for damages for bodily injury, including accidental death, as well as any and all claims for property damage which may arise from subcontractor, anyone directly or indirectly employed by either of them, or an agent of either of them.

Such insurance shall be combined single limit bodily injury and property damage for each occurrence and shall not be less than the amounts specified below:
(a) $1,000,000

5 (b) $1,000,000

(c) $1,000,000
County and its officers, agents, and employees and participating cities and their officers, agents and employees shall be named as additional insured on any such policies of insurance, which shall also contain a provision that (a) the insurance afforded thereby to County and its officers, agents, employees, and servants shall be primary insurance to the full limits of liability of the policy and (b) if the County or its officers, agents, employees, and servants have other insurance against the loss covered by such a policy, such other insurance shall be excess insurance only.

In the event of the breach of any provision of this Section, or in the event any notice is received which indicates any required insurance coverage will be diminished or canceled, County, at its option, may, notwithstanding any other provision of this Agreement to the contrary, immediately declare a material breach of this Agreement and suspend all further work and payment pursuant to this Agreement.

11. Compliance With Laws
All services to be performed by Contractor pursuant to this Agreement shall be performed in accordance with all applicable Federal, State, County, and municipal laws, ordinances, and regulations, including but not limited to the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the Federal Regulations promulgated thereunder, as amended (if applicable), the Business Associate requirements set forth in Attachment H (if attached), the Americans with Disabilities Act of 1990, as amended, and Section 504 of the Rehabilitation Act of 1973, which prohibits discrimination on the basis of disability in programs and activities receiving any Federal or County financial assistance. Such services shall also be performed in accordance with all applicable ordinances and regulations, including but not limited to appropriate licensure, certification regulations, provisions pertaining to confidentiality of records, and applicable quality assurance regulations. In the event of a conflict between the terms of this Agreement and any applicable State, Federal, County, or municipal law or regulation, the requirements of the applicable law or regulation will take precedence over the requirements set forth in this Agreement.

Contractor will timely and accurately complete, sign, and submit all necessary documentation of compliance.

12. Non-Discrimination and Other Requirements
a. General Non-discrimination
No person shall be denied any services provided pursuant to this Agreement (except as limited by the scope of services) on the grounds of race, color, national origin, ancestry, age, disability (physical or mental), sex, sexual orientation, gender identity, marital or domestic partner status, religion, political beliefs or affiliation, familial or parental status (including pregnancy), medical condition (cancer-related), military service, or genetic information.
b. Equal Employment Opportunity
Contractor shall ensure equal employment opportunity based on objective standards of recruitment, classification, selection, promotion, compensation, performance evaluation, and management relations for all employees under this Agreement.
to County upon request.
6 c. Section 504 of the Rehabilitation Act of 1973
Contractor shall comply with Section 504 of the Rehabilitation Act of 1973, as amended, which provides that no otherwise qualified individual with a disability shall, solely by reason of a disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination in the performance of any services this Agreement. This Section applies only to contractors who are providing services to members of the public under this Agreement.
d.

Contractor shall comply with all laws relating to the provision of benefits to its employees and their spouses or domestic partners, including, but not limited to, such laws prohibiting discrimination in the provision of such benefits on the basis that the spouse or domestic part is of the same or opposite sex as the employee.
e. Discrimination Against Individuals with Disabilities The nondiscrimination requirements of 41 C.F.R. 60-741.5(a) are incorporated into this Agreement as if fully set forth here, and Contractor and any subcontractor shall abide by the requirements of 41 C.F.R. 60741.5(a). This regulation prohibits discrimination against qualified individuals on the basis of disability and requires affirmative action by covered prime contractors and subcontractors to employ and advance in employment qualified individuals with disabilities.
f. History of Discrimination
Contractor certifies that no finding of discrimination has been issued in the past 365 days against Contractor by the Equal Employment Opportunity Commission, the California Department of Fair Employment and Housing, or any other investigative entity. If any finding(s) of discrimination have been issued against Contractor within the past 365 days by the Equal Employment Opportunity Commission, the California Department of Fair Employment and Housing, or other investigative entity, Contractor shall provide County with a written explanation of the outcome(s) or remedy for the discrimination prior to execution of this Agreement. Failure to comply with this Section shall constitute a material breach of this Agreement and subjects the Agreement to immediate termination at the sole option of the County. g. Reporting; Violation of Non-discrimination Provisions Contractor shall report to the County Manager the filing in any court or with any administrative agency of any complaint or allegation of discrimination on any of the bases prohibited by this Section of the Such duty shall include reporting of the filing of
any and all charges with the Equal Employment Opportunity Commission, the California Department of Fair Employment and Housing, or any other entity charged with the investigation or adjudication of allegations covered by this subsection within 30 days of such filing, provided that within such 30 days such entity has not notified Contractor that such charges are dismissed or otherwise unfounded. Such notification shall include a general description of the circumstances involved and a general description of the kind of discrimination alleged (for example, gender-, sexual orientation-, religion-, or race-based discrimination).

Final adjudication in an appropriate forum determining that a violation of the non-discrimination provisions of this Agreement occurred, shall be considered a breach of this Agreement and subject the Contractor to penalties, to be determined by the County Manager from among the following:
7 i. termination of this Agreement; and/or
ii. liquidated damages of $2,500 per violation; and/or
iii. no penalty based on the County Manager determining that the incident does not warrant further action; and/or
iv. imposition of other applicable civil remedies and sanctions as provided by law.

To effectuate the provisions of this Section, the County Manager shall have the authority to offset all or any portion of the amount described in this Section against amounts due to Contractor under this Agreement or any other agreement between Contractor and County. h. Compliance with Living Wage Ordinance
As required by Chapter 2.88 of the San Mateo County Ordinance Code, Contractor certifies all contractor(s) and subcontractor(s) obligated under this contract shall fully comply with the provisions of the County of San Mateo Living Wage Ordinance, including, but not limited to, paying all Covered Employees the current Living Wage and providing notice to all Covered Employees and Subcontractors as required under the Ordinance.

13. Compliance with County Employee Jury Service Ordinance Contractor shall comply with Chapte
shall have and adhere to a written policy providing that its employees, to the extent they are full-time employees and live in San Mateo County, shall receive from the Contractor, on an annual basis, no fewer than five days of regular pay for jury service in San Mateo County, with jury pay being provided only for each day of actual jury service. The policy may provide that such employees deposit any fees received for such jury service with
the fees received for jury service in San Mateo County. By signing this Agreement, Contractor certifies that it has and adheres to a policy consistent with Chapter 2.85. For purposes of this Section, if Contractor has no employees in San Mateo County, it is sufficient for Contractor to provide the following written statement to County:
certifies that it has no full-time employees who live in San Mateo County. To the extent that it hires any such employees during the term of its Agreement with San Mateo County, Contractor shall adopt a policy The requirements of Chapter 2.85 do
-hundred
this Agreement is amended such that its total value meets or exceeds that threshold amount.

14. Retention of Records; Right to Monitor and Audit
(a) Contractor shall maintain all required records relating to services provided under this Agreement for four (4) years after County makes final payment and all other pending matters are closed, and Contractor shall be subject to the examination and/or audit by County, a Federal grantor agency, and the State of California.
(b) Contractor shall comply with all program and fiscal reporting requirements set forth by applicable Federal, State, and local agencies and as required by County including additional audit requirements as set forth herein.
(c) Contractor agrees upon reasonable notice to provide to County, to any Federal or State department respective audit agencies access to and the right to examine all records and documents necessary to 8 determine compliance with relevant Federal, State, and local statutes, rules, and regulations, to determine compliance with this Agreement, and to evaluate the quality, appropriateness, and timeliness of services performed.
(d) County agrees that if any entity or person makes a request under the California Public Records Act (CPRA) or an analogous federal, state, or local law or regulation to the County or a Participating City, of which County is aware, for documents or records possessed by Contractor but not by the County or Participating City, relating to this Agreement, or documents that Contractor submitted in its response to the request for proposals related to this Agreement and marked confidential, or documents related to the negotiation, or finalization of this Agreement, County will notify Contractor of such request. If Contractor fails to respond within 72 hours, Contractor shall be deemed to stipulate that the requested documents are subject to disclosure pursuant to the request and Contractor shall immediately thereafter make copies of the documents available to the County or a participating City, as the case may be, for disclosure to the requesting party.

If Contractor responds to the County within 72 hours of such notice by the County and asserts, in writing, that exemptions to disclosure requirements under the CPRA apply, and the County or Participating City as applicable agrees that such documents are not subject to disclosure, in whole or in part, under the CPRA, Contractor shall provide a redacted copy of the documents for County or City to disclose in lieu of unredacted documents for any documents that must be disclosed. In the event that County or the to disclosure, in order to prevent disclosure of such documents, Contractor shall promptly and in any case within ten (10) calendar days of notice of the request, seek a protective court order for non-disclosure of any such records. If Contractor fails to obtain a protective order, such documents may be disclosed by County or City. Contractor shall indemnify and hold harmless County and Participating Cities for any not subject to disclosure.

15. Merger Clause; Amendments
This Agreement, including the Exhibits and Attachments attached to this Agreement and incorporated by reference, constitutes the sole Agreement of the parties to this Agreement and correctly states the rights, dutie In the event that any term, condition,
provision, requirement, or specification set forth in the body of this Agreement conflicts with or is inconsistent with any term, condition, provision, requirement, or specification in any Exhibit and/or Attachment to this Agreement, the provisions of the body of the Agreement shall prevail. Any prior agreement, promises, negotiations, or representations between the parties not expressly stated in this document are not binding. All subsequent modifications or amendments shall be in writing and signed by the parties.

16. Controlling Law; Venue
The validity of this Agreement and of its terms, the rights and duties of the parties under this Agreement, the interpretation of this Agreement, the performance of this Agreement, and any other dispute of any nature arising out of this Agreement shall be governed by the laws of the State of California without regard to its choice of law or conflict of law rules. Any dispute arising out of this Agreement shall be venued either in the San Mateo County Superior Court or in the United States District Court for the Northern District of California.

9 17. Notices
Any notice, request, demand, or other communication required or permitted under this Agreement shall be deemed to be properly given when both: (1) transmitted via facsimile to the telephone number listed below or transmitted via email to the email address listed below; and (2) sent to the physical address listed below by either being deposited in the United States mail, postage prepaid, or deposited for overnight delivery, charges prepaid, with an established overnight courier that provides a tracking number showing confirmation of receipt.

In the case of County, to:

Name/Title: Lori Morton-Feazell / Health Services Manager Address: 225-37th Avenue, San Mateo, CA 94403
Telephone: 650-573-3726
Email: [email protected]
In the case of Contractor, to:

Name/Title: Anthony Tansimore / President
Address: 1450 Rollins Road, Burlingame, CA 94010-2307
Telephone: 650-340-7022 ext. 309
Email: [email protected]

18. Electronic Signature
Both County and Contractor wish to permit this Agreement and future documents relating to this Agreement to be digitally signed in accordance with Cali Administrative Memo. Any party to this Agreement may revoke such agreement to permit electronic signatures at any time in relation to all future documents by providing notice pursuant to this Agreement.

19. Payment of Permits/Licenses
Contractor bears responsibility to obtain any license, permit, or approval required from any agency for commencement of said work/services. Failure to do so will result in forfeit of any right to compensation under this Agreement.

10 * * *
representatives, affix their respective signatures:

For Contractor: Peninsula Humane Society & SPCA, a California Nonprofit Corporation

__________________________
Contractor Signature
_______________
Date
_________________________
Contractor Name (please print)

COUNTY OF SAN MATEO

By:

President, Board of Supervisors, San Mateo County

Date:

ATTEST:

By:

Clerk of Said Board

11 Exhibit A
In consideration of the payments set forth in Exhibit B, Contractor shall provide the following services:

I. COMMON GOALS
A. All parties agree to work on updating a new animal control ordinance during the next 12 months to include the availability of administrative citations.

B. County and Contractor will provide Participating Cities (as defined in exhibit D to this Agreement) with information about the services provided by Contractor and excluded services. In the event the County receives a complaint from an official from a Participating City regarding the quantity or quality of services provided under this Agreement, the County will promptly forward such complaint to Contractor so that the parties may make good faith efforts to promptly resolve the issue and Contractor agrees to meet with officials from the County and/or Participating Cities as may be necessary to resolve such complaints.

II. POLICIES AND PROCEDURES
A. All policies and procedures shall be developed with the goal of animal welfare, enhancing the cost efficiency and quality of services provided to the County and Participating Cities, and to reflect best practices in the industry for animal control and care.
annually submitted to a committee of County and Participating City representatives, with committee members to be designated by the County Manager or designee. The Contractor and committee members will work in good faith to resolve any differences or concerns regarding policies and procedures.

B. The Contractor must establish comprehensive written policies and procedures for proper care and handling of animals.

D. Contractor shall establish policies and procedures in accordance with the Guidelines for Standards of Care in Animal Shelters published by the Association of Shelter Veterinarians, ASPCA, the Humane Society of the United States, and/or other currently accepted best practices for animal sheltering. Policies and Procedures shall focus on these areas:

1. Medical Health and Physical Well-Being

2. Euthanasia

3. Environment

4. Kennels/Cages

5. Capacity for Care

6. Behavioral Health

12 E. Contractor shall develop a written disposal procedure, and the procedure shall provide for the weekly pick up of dead animals.

F. Contractor shall create a procedure compliant with California law to ensure that animals entering the County Shelter receive vaccinations, dewormer, flea control as appropriate for their species excluding animals that are unable to be safely handled or animals that are too sick/injured to receive this treatment.

G. Contractor shall have written policies and procedures on animal placement with a goal of ensuring that non-aggressive and healthy or treatable animals that enter the County Shelter are not euthanized through redemptions, adoptions and transfers to other organizations. Policies and procedures should include guidelines for euthanasia. Terms used in this subsection are to be interpreted in accordance with currently enacted California law.

H. Contractor shall have a procedure addressing how Animal Control Officers will handle complaints and the procedure shall include a benchmark for the time it takes between receiving and closing a complaint.

I. Contractor shall have comprehensive written policies and procedures established for proper care and handling of animals to include emergency response procedures, how animals will be placed into vehicles, how animals will be protected from the heat and cold inside vehicles, and how vehicles will be clean and disinfected.

J. Contractor shall have and apply written disease prevention and response policies and procedures.

Disease response procedures shall include measures to minimize transmission to unaffected animals or people and should ensure appropriate care of the affected animals. Procedures should include a treatment plan where decisions are based on a range of appropriate criteria, including the ability to safely and humanely provide relief, duration of treatment, prognosis for recovery, the likelihood of placement after treatment, the number of animals who must be treated and the expense of treatment and resources available for such treatment.

K. Contractor shall have comprehensive written policies and procedures on Veterinary Medical Services. Policies and procedures shall address proper care of injured and sick animals and be L. To the extent any of the terms of this Agreement are preempted by State law with regard to animal care, custody, transfer, euthanasia, and/or treatment, the parties agree that the terms of this Agreement shall continue to apply to full extent possible in conformity with State law.

13 III. SHELTER SERVICES
A. Receiving animals
Contractor will:

1. Hold lost and stray animals for the requisite time period as required by State law or County ordinance or other applicable local ordinance prior to adoption, owner redemption, release to a partner organization, euthanasia, or other disposition.

2. Ensu
beginning at intake and regularly thereafter. If the animal is too unsafe to handle to have its health status evaluated a visual evaluation may be done by staff.

3. Ensure all animals are scanned for a microchip and checked for other identification when entering the County Shelter and ensure staff enter into the Chameleon (or any successor system) software that the animal was checked for ID. Animals that are unsafe to be scanned for a microchip may be excluded.

4. Solicit information on impounded stray animals.

5. 6. Provide shelter and care for domestic animals under rabies quarantine, and dangerous or vicious animal investigations, according to the applicable City/County ordinance and/or State law.

7. Contractor will immediately notify County Public Health personnel at 650.573.2346, 8am- 5pm, M-F or 650.363.4981 after hours/holidays (or at such other numbers as may be designated in writing, from time to time).

8. If the Contractor plans on using drop boxes for after-hours intake, the drop boxes must be checked at least every hour during the hours that drop boxes are utilized for animal intake.

B. Care of animals
Contractor will:

1. Provide shelter and care for San Mateo County stray and unwanted animals 24 hours a day, 7 days a week, with public service hours designed to benefit the public and facilitate the services established in this Agreement, including coordination with other agencies (state and local governments, or adoption partner organizations, non-profit animal services organizations, etc.) where appropriate.

2. Provide services as required by the State of California governing shelters for animal care, treatment, holding periods, and placements and dispositions.

3. Microchip all animals designated as Dangerous prior to release if medically appropriate and owner is compliant. In the instance of a non-compliant owner, Contractor shall attempt at the first annual inspection of the ow
has in fact been microchipped as required by County Ordinance and shall report their findings to County in a timely fashion.

4. Provide animal food that meets nutritional and medical needs of animals. 14 5. Contractor will make a best effort to have the County Shelter open by 11 am each day, except holidays (as noted in Attachment L - Peninsula Humane Society Holidays), with all animal areas intended for public access clean and ready for the public to enter.

6. Provide County representatives with a master schedule for Animal Care staff upon request.

C. Owner-surrendered animals
Contractor will:

1. Provide pet owners with a handout(s) describing alternative solutions to surrender and other resources to owners who express a desire to surrender their pets. That handout should include contact information for non-profit shelters and rescue groups in the Bay Area, as well as information about pet food pantries, low cost veterinary care, etc.

2. List alternatives to surrendering a pet
website.

D. Identifying animals
Contractor will:

1. Make legally required and additional efforts
including, at a minimum, full microchip body scanning of domestic animals for identification chips, tracing microchips, licenses, rabies tags and other identification, and making several documented attempts in multiple ways (e.g. phone, email, and/or mail) to notify the owner in an attempt to return the animal to its owner prior to any other disposition. Maintain acumen on and utilize developments in the field that might provide .

E. Evaluating animals
Contractor will:

1. Ensure that all healthy, non-aggressive, and treatable animals have a plan for a live outcome.

2. Begin assessment of behavior at the time of intake of the animal. An overall behavior assessment considers all of the information gathered about the animal, including history, behavior during shelter stay, and formal evaluation.

3. Provide and apply the criteria and evaluation system that will enable objective evaluations for animals.

4. Evaluate all breeds equally to determine if they can be adopted, require behavior modification, or allow a partner agency to take the animal prior to euthanasia pursuant to State law.

5. Maintain evaluation records. Document the procedure for each animal in the Chameleon software system (or any successor system). If any paper records are also kept, retain the records for seven (7) years after disposition of animal.

6. Perform kennel enrichment programs to reduce stress for sheltered animals.

7. Place adoptable animals up for adoption or transfer. 15 8. Record all incidents or reports regarding a history of aggressive behavior along with the context in which they occurred.

9. Ensure staff is trained to recognize body language and other behaviors that indicate animal stress, pain and suffering as well as behaviors that indicate successful adaptation to the shelter environment.

10. Monitor animals daily in order to detect trends or changes in well-being and respond to their behavioral needs.

F. Length of stay of animals
Contractor will:

1. County Shelter. Both positive outcomes and
cost of sheltering must be considered.

2. Provide the process to ensure stray and owner-surrendered animals will not remain in the County Shelter more than three (3) weeks past the State law-mandated holding period.

G. Rabies testing/exposure
Contractor will:

1. Immediately provide San Mateo County Health personnel with contact information for relevant Contractor staff in accordance with State and County requirements when there is

2. Ensure all staff members are trained to identify potential rabies exposures and understand the regulations that apply to reporting and managing bites to humans and animals.

3. Provide for testing of animals for rabies pursuant to the current California Rabies Compendium. This requires the decapitation of animals and transport of the head or bat to the San Mateo County Public Health laboratory for testing.

4. Ensure that that the rabies specimen is transported to the San Mateo County Public Health Laboratory within 48 hours of the animal entering the County Shelter or of being euthanized (weekends and holidays excluded).

5. Ensure that for every animal that comes into the County Shelter, staff will identify possible rabies exposures; everyone presenting an animal shall be asked if the animal has bitten anyone within the last 10 days or had any contact with wildlife.

6. Make certain all incoming animals are examined for bite wounds; any animals who have potentially been exposed to rabies shall be managed in accordance with the California Rabies Compendium and in consultation with state and local health authorities.

7. Ensure that staff funded by contract who routinely work with companion animals or wildlife are offered pre-exposure vaccinations against rabies in accordance with recommendations of the Advisory Committee in Immunization Practices.

H. Disposal of dead animals
Contractor will:
16 1. Accept dead animals brought to the County Shelter by County residents, City and County municipalities, or Caltrans and Contractor shall dispose of such animals.

2. Dispose of dead animals in a lawful manner using an appropriately qualified and licensed disposal company or method.

3. Develop a written disposal procedure that will include at least a weekly pick up of dead animals.

I. Transferring animals into County Shelter

1. If the Contractor desires to transfer animals into the County Shelter from nearby Bay Area animal shelters to assist when such shelters are dealing with an emergency, such as a natural disaster, Contractor shall do the following:
a) Request written approval from the County Program Manager of Animal Control and Licensing Manager or other designated County Contract Administrator. The County will respond to such requests in writing within 3 business days. In the event of a need to house animals for another county during a disaster, the County will respond within 24 hours. If the County grants such approval, the written notice of approval will state the maximum number of animals the Contractor is allowed to transfer in pursuant to that consent based upon factors including available shelter space. Detailed documentation on an appropriate Federal Emergency Management Agency (FEMA) form will be kept to record, on a daily basis, on the number of Contractor staff caring for the animals to include hours worked, along with supplies, as well as number of days sheltered for each animal. This will allow for reimbursement if declared a federal disaster, or reimbursement from other local jurisdictions. b) Periodically, and only as space and resources allow, Contractor may purposefully transfer, house or bring into the County shelter animals from another animal shelter, partner group or agency within or outside the County to be housed in the County Shelter for the s other shelter or location only if a monthly report is sent to the Program Manager of Animal Control and Licensing or their designee outlining the number of animals transferred into the shelter along with each animals individual animal identification number. If Contractor plans on transferring in more than 30 animals a month Contractor will obtain written approval from the Program Manager of Animal Control and Licensing or their designee. Contractor will reimburse the County and Participating Cities for the costs of vaccines, preventative care, treatment, food, facility use and maintenance, and staff time to care for these animals. The cost will be calculated by the number of days that animal is housed at the County shelter at the rate of $15 per animal per day. This rate may be adjusted annually, based on changes to Consumer Price Index and the Parties will meet and confer before the rate is adjusted. In addition to this daily rate, the Contractor will reimburse the County and Participating Cities for the actual costs of vaccines, flea treatment, dewormer, DTM cultures, canine heartworm and feline FIV/FeLV tests on a per animal basis.

The Contractor will reimburse the County and Participating Cities each quarter of the fiscal year and will provide a report in a form reasonably satisfactory to the County and Participating Cities that details the fees owed pursuant to the applicable daily rate and any other applicable costs to be reimbursed to the County and Participating Cities. This obligation to reimburse the County and the Participating Cities does not apply to situations where an animal needs to be transferred in to the County shelter where the animal is held because of a bite or potential dangerous dog designation and where the incident occurred in San Mateo County, but the animal was first taken to another animal shelter. In such cases, the animal shall in the Chameleon software intake statistics. 17 Contractor will also reimburse the County and Participating Cities at the rate described above and shall reimburse the County and Participating Cities for the above-described expenses for any animal impounded by the nonprofit for a Cruelty case and housed at the County Animal Shelter. Detailed notes by staff must be entered into the Chameleon database (or any successor system) and should describe the reason for the animal being transfer back into the County shelter.

2. In cases where the Contractor transfers an animal back to the County Shelter for any reason, the Contractor will pay for the care of the animal and not use contract funds or staff being paid for by the contract. Detailed notes by staff must be entered into the Chameleon database and should describe the reason for the transfer back to the County shelter.

J. Working with partner groups
Contractor will:

1. Within 6 months of signing this Agreement, develop a Partner Group application for any shelter or Partner Group that would like to apply to take animals from the County Shelter ite.

2. Assign one (1) or more staff members to proactively contact Partner Groups and non- profit shelters in the County and throughout the Bay Area to encourage them to take animals whose medical or behavioral needs exceed available resources or who would otherwise be better served by being transferred to a Partner Group or to take animals that have been in the County Shelter for more than three (3) weeks past their stray hold or owner surrender intake date. If the Contractor desires, animals may be placed prior to the expiration of the three (3) week hold period. Contractor will decide which animals will be transferred to the Lantos Center for adoption.

3. As an alternative to euthanizing feral cats when cat caretakers are unavailable, will either 1) release the feral cats to an organization that will Trap-Neuter-Return (TNR) the cats, 2) TNR the cats themselves, or 3) develop a plan on how to handle feral cats to improve the live release rate (e.g. implementing a barn or working cat program).

K. Vaccinating, deworming, flea prevention, photos, documentation Contractor will:

1. Complete health assessments of dogs and cats within 24 hours of the animal entering the County Shelter.

2. Complete behavioral assessments of dogs and cats within 4 days of the animal entering the County Shelter (not including the day of intake). Excluded: Dangerous animals, quarantined animals, animals in protective custody, euthanasia requests, exotic animals, fowl.

3. Conduct full body microchip scans and check for other forms of identification at the time of intake for all animals that can be safely handled.

4. Provide a photograph and description of each lost animal through public outreach

18 5. on (breed, sex, and age), health assessment, initial behavioral assessment, microchip, license, rabies, and any other pertinent information in Chameleon Data Management System (or any successor system) within 24 hours of receiving each animal.

6. Document complete behavioral assessment results in Chameleon Data Management System (or any successor system) within 4 days of receiving each animal (not including the day of intake).

7. Provide vaccinations, dewormers, and flea control when an animal enters the County Shelter as appropriate for their species, excluding animals that are unable to be safely handled or animals that are too sick/injured to receive this treatment.

L. Keeping County Shelter clean and disinfected
Contractor will:

1. Always maintain the kennel and animal care facilities in a humane and sanitary condition with a focus on these areas:
a) Cleaning and Disinfection. Use of disinfectants should be limited to those that are proven safe and effective for animal species sheltered at the County Shelter. b) Surfaces and Drainage

2. Maintain stocks of disinfectants based on accepted industry standards to preserve function and effectiveness with regards to temperature and light exposure.

3. Update all written guidelines/documentation for use of disinfectants to reflect current practices as well as industry standards/recommendations.

4. Staff and volunteers shall receive training when guidelines have been updated and documentation of training shall be maintained.

5. Take commercially reasonable measures to maintain a pest-free shelter. Contractor will enter into, pay the costs of, and monitor on a recurring and scheduled contract for pest control services in and around the County Shelter.

6. Have written information available about zoonotic diseases for visitors, adopters and foster care providers.

7. Clearly mark enclosures of animals with suspected zoonotic disease to indicate the condition and any necessary precautions.

8. Provide periodic staff and volunteer training and information on the recognition of potentially zoonotic conditions and the means of protecting others from exposure. This shall be included in the policy and procedures.

9. Ensure the public does not have unsupervised access to areas where animals are isolated for zoonotic diseases.

M. Providing enrichment
Contractor will:

1. Provide kennel enrichment programs that provide every animal with an opportunity to be socialized and reduce stress while in the County Shelter. 19 N. Euthanasia
Contractor will:

1. Provide for the humane euthanasia and disposal of animals determined to be unhealthy, aggressive, or untreatable as determined by California law.

O. Owner-requested euthanasia
Contractor will:

1. Follow the basic matrix definition of Owner-Requested Euthanasia. The basic matrix definition of Owner -Requested Euthanasia can be found at:
https://www.shelteranimalscount.org/docs/default-
source/dataresources/sac_basicdatamatrix.pdf

2. Contractor will pursue all reasonable measures to verify animal ownership prior to euthanasia.

3. Record and classify animals in the Chameleon software and in Live Release Rate owners with the specific intention of using the Owner Requested Euthanasia service.

When an owner wishes to surrender an animal for adoption and that animal is deemed unhealthy and untreatable, or aggressive
information provided by the owner and the owner elects to surrender the animal for

4. Decline to provide the owner-requested euthanasia service to treatable animals and will instead either accept and treat those animals, provide resources so the owner so they can keep and treat their animal, or refer the owner to another organization that will assist the pet owner, so they can treat the animal.

5. Offer private owner-requested euthanasia (including pet-owner witnessed euthanasia, when requested with regard to non-aggressive animals only) as a service at the County Shelter, if the animal is deemed unhealthy and untreatable, or aggressive.

P. Documentation
Contractor will:

1. Accurately complete, sign, and submit all necessary documentation of compliance in a timely manner.

Q. Adoption of animals
Contractor may:

1. Arrange adoptions onsite at the County Shelter to reduce the length of stay for animals and have other approaches to adoptions such as transferring animals from the County Shelter and moving them to their non-profit shelter or partner organizations for adoption.

There is no set number of animals that need to remain up for adoption at any point in time at the County Shelter.

Contractor will:
20 2. Ensure that the public cannot come into contact with, or view, bite quarantine animals and aggressive animals that are considered a danger to the public.

IV. FIELD SERVICES
A. Respond to field service calls
Contractor will:

1. Respond to calls for Animal Field Services 24 hours a day, 7 days a week, 365 days a year as set forth in the below-described priority listing, unless otherwise noted below.

Notwithstanding any other provision herein, Contractor shall respond on holidays and after regular business hours (9pm-7am) to call Priority 1 and 2 categories. If no calls in those priorities are pending the staff Contractor will respond to Priority 3 and 4 calls.

2. Contractor may receive and accept requests for service in person, via phone, email, text message, voicemail or fax. Contractor will have policies and processes in place to ensure that text messages, emails, voicemails and faxes are monitored and retrieved in a routine and timely fashion.

B. Priority for Field Activities

1. Priority 1: Immediately respond to all emergency calls of the following types within one (1) hour of the receipt of the call from the reporting party:
a) Imminent threat to a person by an aggressive domestic, exotic or wild animal b) A Public Safety agency request for immediate assistance c) Possible rabid animal
d) Aggressive dog at large, or an aggressive dog that could cause harm to a human or an animal (e.g., an aggressive dog breaking out of a yard or has access off the property) e) A dog that has bitten a human or that has attacked another animal and that remains at large
f) Major injury to dog, cat, or domestic animal
g) An animal in hot car or an animal that is otherwise in immediate danger h) Dangerous animal permit violation that has occurred and the same animal remains a threat to person or property
i) Animals at large causing a traffic hazard (including livestock) j)
k) s life is in danger
l) When juveniles are present at a school grounds any bat, any aggressive animal, animal posing a risk to humans, sick or injured animals, dogs at large, or confined or trapped animal are present on the school grounds.
m) Request by a Public Safety Official or Fish & Wildlife officer to respond to a mountain lion or an escaped exotic animal that is an imminent threat to a person. Handling of these situations will be a joint response between the requestor and the Contractor. Contractor will be acting in an advisory capacity. Contractor is responsible for arranging a third party to 21 handle, transport and/or care for exotic animals. If a third party is retained by Contractor, said third party shall have lead advisory responsibilities. Public Safety Officials and/or Contractor will determine if Fish and Wildlife need to respond to the scene. Contractor will remain on the scene with requesting Public Safety Official until situation is resolved.

2. Priority 2: Respond without unnecessary delay, within (4) hours of receipt of the call from the reporting party:
a) Dog, cat or domestic animal sick, or with minor injury b) Sick or injured wildlife
c) All non-threatening Dangerous Animal permit violations d) Dog or cat in trap
e) Animal in custody (stray confined)
f) Pack of dogs
g) Dead animal at a school between 7:00 AM and 8:00 PM (excluding holidays)

3. Priority 3: Respond without unnecessary delay within a maximum of 18 hours of receipt of the call from the reporting party and as soon as reasonably possible beforehand to the following situations:
a) Animal at large (non-aggressive and non-threatening) in violation of local ordinance b)
c) Reports of animal bites or attacks where there is no longer an animal at large which is an immediate threat to persons or property.
d) Dead animal pick-up
e) Animal bite quarantines

4. Priority 4: Respond without unnecessary delay within 24 hours of receipt of the call from the reporting party:
a) Stray patrol request
b) Owned animal for relinquishment (based on special circumstances or special hardship situation)

5. Priority 5: If there are no calls pending in the other priority categories:
a) Officers will patrol City and County parks and neighborhoods in areas accessible by

6. Ensure that Animal Control and Humane Officers shall impound stray or confined dogs and cats and return them to the owner in the field, or transport to the animal to the shelter, as deemed appropriate by the Officer.

7. Provide a master schedule for Animal Control staff.

C. Enforcement of state and local animal control laws; Municipal code violations Contractor will:
22 1. Enforce all County and City ordinances pertaining to animals as outlined in Chapters

6.04, 6.12 and 6.16 of Title 6 of the San Mateo County Ordinance Code and enforce state statutes where applicable, except for number of animals per household or barking dogs, which are referred to the respective overseeing agency (code enforcement or law enforcement).

2. Uniform Ordinances and Citation Authority. County shall encourage the Participating City jurisdictions shown on Exhibit D to adopt and maintain animal control ordinances and fee schedules that are materially equivalent to the County control ordinance and fee schedule. The animal control ordinances for all jurisdictions shown on Exhibit D should be substantially the same as the provisions of Chapters 6.04,

6.12, and 6.16 of Title 6 of the San Mateo County Ordinance Code, as amended, to be effective within the city limits. The fee schedule shall be the same as outlined in Chapter

6.04.290 of the San Mateo County Ordinance Code.

3. Enforcement of city ordinances which differ materially from the County ordinance need not be enforced by Contractor unless Contractor agrees that the ordinance does not conflict with its mission, and the city and Contractor mutually agree on the cost of services. Participating Cities agree to provide notice to Contractor of any changes to their City codes that would relate to additional or different Contractor responsibilities under this Agreement.

4. Upon request by a Participating City, the County, or residents of a Participating City or the unincorporated County, investigate complaints of animal related public nuisances, to those ordinance code violations enumerated in Chapter 6.04 of Title 6 of the San Mateo County Ordinance Code and similar city ordinances, with the exception of complaints regarding barking dogs.

D. Citations
Contractor will:

1. Develop a voidable animal license citation process for license violations, that affords the animal owner 30 days in which to register for a license and have the citation voided.

Specifically, on all complaints involving stray or loose animals, municipal complaints and quarantines etc., if the animal owner living in San Mateo County does not have their animal licensed in San Mateo County, the ACO will issue a voidable license citation to the animal owner.

2. Ensure that ACO/Humane Officers issue administrative and non-administrative citations for City, County or State violations. Written warnings can be issued for first offense minor violations only if the ACO/Humane Officers follow up within two weeks to ensure compliance with the written warning.

3. Record all citations and written warnings in the Chameleon (or any successor system) software system.

E. Impoundment of animals
Contractor will:

1. Impound all dogs caught at large, scan all dogs and cats, that are safe to handle, for microchips in the field and provide for field return to owner as deemed appropriate by the Animal Control Officer.
23 2. Except when responding to a Priority 1 or Priority 2 call or when responding to a Priority 3 or Priority 4 call in order to meet expected response times, ensure that when Animal Control Officers observe a violation of the Participating City or County ordinance, the Animal Control Officer will stop, contact the animal owners, and take appropriate actions, such as a written warning for first offense, or the issuing of a citation for subsequent violations.

3. Investigate and follow up with impoundment, citation, search and seizure warrant for animal bites, vicious/dangerous animals, and attacks in conjunction with respective City Attorney or County Counsel and/or County District Attorney.

4. Contractor shall impound animals in the regular course of its enforcement of City and County ordinances as necessary to protect the safety of persons and property, or the animal. In addition to its ordinary impoundment responsibilities under this Agreement, if Contractor receives a specific request from a City and/or County law enforcement agency, Contractor shall promptly impound any animal, whether the animal is on public or private property. Contractor shall obtain any necessary consent or warrant as required by law for all impoundments. In exigent circumstances, in which a warrant is not required because personal or public safety is at imminent risk, Contractor shall impound the animal immediately. However, in the event that Contractor determines that a warrant is necessary for the impoundment, Contractor shall promptly seek such warrant and take all steps necessary to ensure that the animal is secured in such a manner that it poses no threat to the safety of any person pending the impoundment.

In those limited situations in which Contractor reasonably believes that there is no violation, seizure is unlawful and there are no grounds for seeking a warrant despite the request by City or County law enforcement,
respective City (or County Sheriff or designee if applicable) and the County Animal Control Manager or designee, if available within one hour. If the City or County representatives are not available and/or there is still disagreement, and City or County law enforcement still requests impoundment, City or County law enforcement will seize the animal, and Contractor with thereafter take custody of the animal and impound the animal at the shelter. In these situations only, if the City or County law enforcement officer believes that a warrant should be applied for, but Contractor does not believe there are grounds for such warrant, the law enforcement officer shall supply the affidavit for such warrant and, at the request of the City or County law enforcement officer, Contractor shall seek the warrant from the court.

5. Contractor shall not release any impounded animals unless the owner of such animal, or another individual with express verbal or written authority from the owner to pick up the animal (and such authority has been directly conveyed to Contractor from owner), the relevant impoundment, emergency
medical treatment, and licensing/permit fees to redeem said animal. Fees may be billed under certain circumstances as outlined in Exhibit A. - VI. Operations D. Administration 1 Financial Systems.

F. Transport of sick, injured animals
Contractor will:
24 1. Ensure the transfer of any injured or sick animals to the animal shelter or veterinary emergency hospital, or ensure that the owner (if present) of the animal seeks medical treatment.

G. Field euthanasia
Contractor will:

1. Ensure that if euthanasia is necessary for a sick or injured wild animal while it is in the field, the euthanasia shall be conducted by trained personnel with necessary equipment.

This service shall be available twenty-four (24) hours a day, seven (7) days a week, 365 days a year.

H. Investigations for animal bites, dangerous & vicious animal cases Contractor will:

1. Conduct thorough investigations of dangerous or vicious animals, which shall include interviewing witnesses, collecting evidence, writing reports, taking photos, requesting related information and securing search warrants to impound a vicious or dangerous dog, making initial designations as dangerous or vicious, and testifying at hearings. This investigation should be completed, and the report and all supporting information presented to the County, at least three (3) calendar days ahead of the scheduled hearing. will follow the applicable
County and Participating City ordinances.

2. Investigate municipal code violation complaints within the jurisdictional boundaries of the Participating Cities and the unincorporated County
as outlined herein. This includes, but is not limited to, interviewing witnesses, collecting evidence, taking photos, writing reports, requesting related information and securing search warrants, issuing citations, and participating in hearings or court proceedings as needed for potential impoundment and/or prosecution. Officers will work closely with the City Attorney or County District Attorney as applicable.

I. Removal of dead animals
Contractor will:

1. Remove dead animals from the public right-of-way, except freeways and/or highways, which are maintained by CALTRANS.

2. Remove stray dead domestic animals from private property for no charge.

3. Remove owned domestic dead animals at the request of owner with a charge to the member of the public requesting the service, as set forth in the Fee Schedule. All such fees collected by the Contractor shall be remitted to the County.

4. Pick up and dispose of any dead animal on any street, sidewalk, school, or other public property.

5. In cases where animal contact meets the criteria for rabies testing, pick up dead or live wildlife on private property. In cases where animal contact meets the criteria for rabies testing, the Contractor will follow the rabies testing protocol. 25 6. Dispose of dead wildlife or domestic dead animals that are brought to the shelter. If a commercial wildlife removal or pest company wants to dispose of dead animals, they will have to enter into a contract with the County to pay for disposal fees.

7. If Contractor is unable to safely remove a dead animal, Contractor will hire a qualified third-party using contract funds to remove the dead animal.

J. Quarantine of animals
Contractor will:

1. Quarantine biting animals and enforce State Codes, California Rabies Compendium, and County guidelines relating to rabies control. This includes providing state-mandated rabies clinics.

2. Work with San Mateo County Health to jointly determine when an in-home bite quarantine is appropriate and will be made available.

K. Dispatch
Contractor will:

1. Provide radio dispatching to the field between the hours of 8:00am and 6:00pm on Monday through Friday and 8:00am and 5:00pm on Saturday, Sunday, and Holidays.

2. County shall provide radio dispatching to Contractor between the hours of 6:00pm and 8:00am Monday through Friday and 5:00pm and 8:00am Saturday, Sunday, and Holidays. The Contractor will pay the annual cost for County Radio Dispatch using funds paid to Contractor pursuant to this Agreement.

3. Have a system for phone calls to roll to another person in order to answer calls from the residents for the County. If there is more than one (1) Dispatcher on shift, the phone lines will be set up so the calls coming in roll between the multiple phones.

4. Have a line for law enforcement, fire, and other government officials to call on at all times when the contractors dispatch is open if they need service from the Contractor.

5. County shall maintain County-owned radio equipment as denoted in Attachment M County-Owned Radio Equipment.

V. VETERINARY MEDICAL SERVICES
A. Provide veterinary care for animals
Contractor will:

1. Make medical decisions that balance both the best interest of the individual animals requiring treatment and the County Shelter population.

2. Ensure that the County Shelter medical services include, but are not limited to: animal exams, vaccinations, microchipping, dispensation of medications, disease prevention, surgeries (e.g. enucleations, amputations and wound repairs), emergency care of injured animals, euthanasia and coordination with other local, state and national agencies. 26 3. Ensure that medical staff regularly monitor the status of individual animals and the population as a whole.

4. Have and apply written disease prevention and response policies and procedures.

Disease response procedures should include measures to minimize transmission to unaffected animals or people and should ensure appropriate care of the affected animals.

Procedures should include a treatment plan where decisions are based on a range of appropriate criteria, including the ability to safely and humanely provide relief, duration of treatment, prognosis for recovery, the likelihood of placement after treatment, the number of animals who must be treated and the expense and resources available.

5. Ensure that there is preventive health care appropriate for each species and include protocols that strengthen resistance to disease and minimize exposure to pathogens.

6. Ensure that medications and treatments are only administered with the advice of a veterinarian or in accordance with written protocols provided by a veterinarian, and all drugs are dispensed in accordance with federal and state regulations.

7. Whenever possible, ensure all veterinary care and treatments are recorded in Chameleon (or any successor system).

8. Microchip and spay/neuter all animals for adoption prior to pick up by new owner, as required by law, unless a veterinarian determines the procedure is not safe for the a

9. Have written policies regarding care and treatment of injured and sick animals and that are in alignment with State or local laws and address.

B. Veterinarian medical licensing/registration
Contractor will:

1. Maintain current premise permits and meet all veterinary licensing requirements as specified by the California Veterinary Medical Board and California and federal law.

2. Maintain licensure to dispense and supply shelter and field services staff with the controlled substances necessary for performance of field captures and euthanasia, including the monitoring and security of such substances.

3. Ensure that veterinary staff meet certification and/or license requirements set forth by the State of California. Staff includes veterinarians, registered veterinary technicians, and other licensed or certified personnel.

C. Medical examination, treatment, and medication
Contractor will:

1. Ensure that the veterinary staff 1) perform a medical examination upon arrival for all sick/injured animals, 2) direct and monitor the care of injured and/or sick animals, 3) adheres to and directs procedures to reduce or respond to the outbreak of infectious diseases, and 4) provide a medical exam for all animals (except those needing emergency care) within 24 hours of arriving at the shelter.

2. Provide for laboratory services including stool examinations, cytology, urine analysis, heartworm tests, FELV/FIV tests, electrolytes measurements, and blood counts, among other testing.
27 3. Ensure adequate and appropriate administrative controls are in place to monitor medications and medical supplies.

VI. OPERATIONS
A. Personnel

1. Staffing
Contractor will:
a) Hire personnel that are fully-qualified, authorized, licensed or permitted under applicable State and local law to perform such services.

2. Contract Funding of Staff
Contractor will:
a) Ensure all shelter, field, facilities and veterinary-related staff and managerial positions funded 100% by the Contract, spend 100% of their time working at the County Shelter, or providing other services to the County and Cities pursuant to this agreement (excluding disaster work, training, or meetings.) If one of these staff member works less than 100% of their time at the County shelter, the percentage of hours worked under the items of this Contract will be documented on a timesheet/time clock. Hours worked at another location will not be charged to Contract funds.
the County shelter and other sites, Contractor shall prioritize services denoted within this agreement. Contractor will include with the monthly invoice a report of the FTE hours worked at the County shelter by these staff members. An organization chart will be sent to the County annually that shows the Contractors entire organization including the percentages of time staff paid by the County shelter.

3. Training
Contractor will:
a) Annually provide a training plan that includes any certifications required by State laws. b) Be responsible for providing fully trained personnel in all aspects of performance, including proper animal care, animal handling, and enforcement procedures and techniques. c) Ensure all ACOs complete Penal Code 832 Arrest course or be appointed pursuant to California Corporations Code Section 14502 as Humane Officers, issue citations, receive ongoing training and maintain proper education, experience and/or certification within one (1) year of hire.
d) Ensure all ACOs pass approved baton training at earliest feasible opportunity. No ACO shall use a baton until trained.
e) Require all ACOs to be certified to perform euthanasia by injection as defined by California law. All ACOs will complete required training per state law. f) Require all staff that perform animal euthanasia to be trained pursuant to State law. g) Require staff members that have access or review documents, such as bite reports and human medical records, to complete HIPAA training.
28 4. Volunteer Program
Contractor will:
a) Have an active volunteer program to support the Animal Care and Control program and related activities. The County encourages the use of volunteer support in all aspects of the program unless prohibited by State law. The volunteer program will be guided by policies and procedures similar to
b) Contractor should work to increase the volunteer to staff ratio as may be deemed appropriate by Contractor for specific programs.
c) Carry insurance on volunteers, including coverage for volunteers at the shelter including but not limited to their interaction with animals.
d) Outline how they will recruit and coordinate volunteers and assigned activities. e) Track volunteer hours and report numbers annually to the County. f) Outline which tasks the volunteers will be assigned to complete at the shelter.

B. V.6.4. Vehicles

1. Acquiring /Replacement
Contractor will:
a) Utilize funds paid to Contractor pursuant to this Agreement to acquire or replace vehicles.

2. Vehicle Maintenance and Repair
Contractor will:
a) Provide proof of automobile liability insurance covering all Contractor staff utilizing vehicles pursuant to this Agreement.
b) Be responsible for all vehicle maintenance and repairs to be paid out of funds paid to Contractor pursuant to this Agreement.
c) Utilize and maintain existing and replacement vehicles assigned for animal control activities.
d) Provide a quarterly maintenance and repair report listing all vehicles and the service received.
e) Ensure all vehicles receive routine maintenance as required by the manufacturer. f) Maintain all of the vehicles such that they remain in a safe, professional condition at all times. Records must be kept on all maintenance problems and mileage. g) Keep vehicles in good repair and ensure that there are no dangers to animals inside the vehicles that could cause injury such as sharp edges, gaps in doors etc. h) Clean and disinfect after an animal has been transported in the vehicle. i) Ensure all vehicles are kept clean on the inside and outside.

C. Procurement

1. Inventory
29 Contractor will:
a) Maintain and provide to the County, within thirty (30) days of execution of this Agreement, a current inventory of all equipment paid for with non-contract Funds owned by Contractor or paid for in part with non-Contract Funds, used at the shelter and having a current fair market value of $1,000 or more. Provide to the County, within six (6) months of signing the Agreement, an inventory of all durable equipment purchased using contract funds and having a current fair market value of $1,000 or more.

2. Computer Hardware and Software
Contractor will:
a) Be responsible for the provision and replacement of County-owned hardware and software using contract funding, grants or private funds as long as all of the computer hardware located in the County Shelter purchased using contract funds is considered the property of the County. Items owned by the County will be listed in the annual inventory. b) Maintain an inventory of purchased hardware and software. c) Be responsible to provide server, internet connectivity and equipment to operate all computers within the shelter. This will include the set-up of the service for the equipment.

3. Operating Supplies
a) The Contractor shall be required to purchase all operating supplies for the purpose of any service provided under the terms of the contract with contract funds, County-directed donations or other funding sources directed solely to the County Shelter; the supplies will be and remain the property of San Mateo County.
b) County shall provide animal licensing tags for dogs, cats, animals held under a Dangerous Animal Permit, and animals designated as Service Animals.

D. Administration

1. Financial systems
Contractor will:
a) Have in place a process and have the capability to provide billing and provide activity reports to the County.
b) Contractor will not release any impounded animals unless the owner of such animal, or another individual with express written or verbal authority (such verbal authority having been conveyed to Contractor directly from owner) to represent the owner, appears at the Contractors facility, and pays all applicable impoundment, emergency medical treatment, and/or licensing/permit fees to redeem said animal. Exceptions may be made where efforts safety of its staff, volunteers or facility. Contractor will alert the program manager of Animal Control and Licensing regarding the threat of harm to the staff. c) Contractor will require license fees to be paid before the animal leaves the shelter. d) Contractor will bill the responsible party if it is reasonably determined that they cannot pay the required fees at the time an animal is released. Contractor will use every effort to confirm that the responsible party is unable to pay fees. In the case of unaltered dogs, cats and 30 rabbits, fees will only be billed provided the responsible party agrees to have the animal spayed or neutered prior to the animal being released from the shelter. e) Fees will only be transferred to the County for billing as a last resort. Any time a responsible party is billed, the responsible party shall be provided a detailed and clear itemized list of fees, as well as a letter on San Mateo County Health Department letterhead explaining how to pay owed fees and the potential for collections actions to follow.

2. Financial Audit & Operational Audit
Contractor will:
a) Provide periodic updates on the annual external audit process, including information on the process which will be used to ensure the completion of audits. The completed written audit and opinions shall be supplied to the County by December 31st of each calendar year for the previous fiscal year.
b) Annually hire an independent auditor, who will conduct a fiscal year audit of all expenses and revenues and services noted above. The auditor must document and express an opinion on program revenues, expenses and units of service and must conduct audit in accordance with generally accepted auditing standards. The audit report shall also express an opinion regarding compliance with the financially related terms of the Agreement. c) After completion of the audit, allow County or City personnel, or consultant to speak directly with the auditors in a joint session with Contractor. d) Contractor shall use all commercially reasonable efforts to achieve economy, efficiency and effectiveness in performance of the services provided. Contractor and County will meet on occasion, as requested by County, but not to exceed more than once per year, to consider revisions which may be needed to the reporting forms created to document performance of the services provided. At any time during the term of this Services Agreement, but not to exceed one time annually, County may request, and Contractor shall provide additional detailed information concerning services performed under this Agreement for the purpose of a performance audit. The County shall make every effort to follow Generally Accepted Government Auditing Standards (GAGAS). e) At any time during normal business hours and as often as the County may deem necessary, allow the County and/or representatives of the County to observe all staff and volunteers in all areas of the County Shelter operation. County/City and/or representatives/contractor shall reasonably conduct themselves so as to not impede regular operations or functions. At no time will the County/City and/or representatives/contractor of the County direct the work of any Contractor staff in any manner. f) At any time during normal business hours, with 24-hour notice from the County, and as often as County may deem necessary, provide to the County and/or representatives of the County records for examination with respect to all matters covered by this Agreement. Any records (e.g., personal employment) that would require notice to interested parties, shall be so noticed to the extent required by law prior to disclosure. Notice to Contractor shall not be required if the County has evidence of fraud or other misuse of contract dollars on the part of the Contractor; provided, however, that Contractor does not waive any privacy rights that individual employees may have. Nothing in this Services Agreement shall be construed as granting County any right to make copies, excerpts or transcripts of information unrelated to the Services Agreement without the prior written consent of Contractor. 31 3. Documentation
Contractor will:
a) Maintain for at least four (4) years after contract termination, and provide to County, or authorized representatives, and/or to any of their respective audit agencies access to and the right to examine all records and documents necessary to determine compliance with relevant Federal, State, and local statutes, rules, and regulations, to determine compliance with this Services Agreement, and to evaluate the quality, appropriateness, and timeliness of services performed.
b) Maintain for at least four (4) years after contract termination, and provide to County as requested records of animals impounded including the description of animal; date of receipt; date and manner of disposition; treatment received; name and address of person who redeemed animal; and fees, charges and proceeds charged and collected for redemption.

Contractor will provide information regarding adopters and fees for those animals adopted at the County Shelter. Contractor shall record all vaccinations. c) Maintain a complete record on each animal within the Chameleon (or any successor system) database.

4. Quality Improvement
a) Contractor shall have a Quality Improvement program to ensure maintenance of key documents, reporting, scheduling services and activities, staff performance, and customer service.

E. Public services

1. Contractor agrees to convene a Participating s Group at a minimum of once per year over the term of this Services Agreement.

2. President of the organization, and a committee of Participating City and County elected officials upon request, at a minimum of once per year during the term of this Services Agreement to review work covered herein.

3. Contractor agrees that the President, Senior Vice President of Operations, Senior Director of Operations will meet monthly with the Program Manager of Animal Control and Licensing.

4. When the County responds to a public records request, it will also provide an exact copy to Contractor of the documents disclosed to the member of the public.

5. Contractor agrees to present an annual report and supporting documentation to the Board of Supervisors that addresses the performance of the contracted services set forth in this Agreement.
32 6. Public services include, but are not limited to: staffing the call center, providing and running a website, reunification of lost animals with owners, animal adoptions, animal transfers to partner organizations, adoption promotions, licensing services, vaccination and microchip clinics, media inquiries, citizen complaint resolution, public education and outreach, utilization of volunteers, and coordination with other local, state and national agencies. Services also include the proper collection and handling of financial transactions associated with fees, fines, donations, and contract payments.

7. Contractor will provide quarterly communication updates to the County and Cities for public release on their websites and within social media. This should include any information for residents on services provided by the Contractor.

Contractor will:

8. Issue animal licenses and or required permits and collect applicable fees for dogs and cats that are encountered at the County shelter.

9. Provide public hours at the County Shelter as follows: Shelter will be open 7 days a week with a minimum of 8 hours per day Monday-Friday (e.g. open 11:00AM-7:00PM) and 6 hours (e.g. open 11:00AM-5:00PM) per day on Saturday and Sunday. The shelter can be closed on major holidays (see attachment L Peninsula Humane Society Holidays), provided, however that on such holidays, Contractor shall maintain the minimum staff necessary to care for the animals and respond to field activities. Shelter will be cleaned by 11 am and ready for public to enter during business hours.

10. Provide method(s) for customers to find and claim lost pets through the website, call center, notification by mail and telephone.

11. Promote adoptions and licensing through a variety of outreach strategies, including public education and outreach opportunities that contribute to increasing the live release rate and decreasing pet overpopulation.

12. Ensure customers are provided with exceptional customer service by achieving a positive customer satisfaction rating according to a survey to be developed in conjunction with County approval and administered annually. The survey must include a customer feedback component to ensure continuous improvement.

13. Develop and maintain acceptance, tracking and resolution procedures for customer service complaints received regarding Animal Services. Provide initial response (e.g. phone call, email, in-person visit) to resident complaints within 48 hours of receipt, with intent to resolve within a reasonable period. County will be advised for sensitive or unusual complaints.

F. Provide monthly low-cost vaccination clinics at the shelter Contractor will:

1. Hold at least one (1) monthly low-cost vaccine clinic at the County Shelter for the residents of San Mateo County. The Contractor shall sell licenses at the monthly low-cost vaccine clinics and all fees collected at the clinic will be remitted to the County.

G. Issuing licenses
Contractor will:
33 1. Provide online information on how pet owners can license their pets to include locations for purchase and web addresses.

2. Issue replacement tags to dog owners whose license tags are lost, stolen or damaged, for applicable fee.

3. License and/or issue required permits and collect for County all applicable fees for all dogs and cats that are encountered at the County Shelter as required by applicable ordinance.

4. Issue a one (1) or three (3) -year option for dog licenses to the general public as required by applicable ordinance/law and collect applicable fees for County.

5. Provide an online option on the website (https://www.petdata.com/ URL etData, Inc.) to license or renew animal
licenses.

6. Properly handle the collection, deposit, remittance, and refund of all money associated with service fees, fines, and contract payments.

7. Collect all fees documented in the ordinances.

8. Contractor shall remit to the County monthly any and all fees collected, pursuant to ordinance, as well as, vaccine and microchip clinic fees, and animal licensing fees.

H. Software
Contractor will:

1. Utilize the Chameleon (or any successor system) software and database animal sheltering information system for the purpose of tracking all animal intakes and dispositions, behavioral notes, all medical conditions and treatment (with the exclusion of some medical notes that are unable to be added to the database and can be handwritten), notes made by volunteers may be hand written, animal control field activities, animal control citations and written warnings, animal bites and bite quarantines and other data relevant to the management of the animal services operation. Contractor shall provide copies to the Participating Cities/County or contractor all written notes as well as data within the Chameleon (or any successor system) software upon request.

2. Be responsible for paying all of the Chameleon (or any successor system) software system fees for work related to the contract, including the County licenses, using contract funds. The Chameleon (or any successor system) license will list San Mateo County and Peninsula Humane Society & SPCA as the database owners. In the event of contract termination or expiration, each party shall receive an exact copy of the database information, and if any technical problems arise regarding that goal, each party agrees to use best efforts to achieve this result.

3. on (or any successor system) shall be
utilized for private individuals who have adopted a pet with the intention that the animal is to be their permanent pet or the permanent pet of their friend, partner or relative. The (or any successor system) shall be utilized for Partner Group organizations and their designees that plan to temporarily hold the animal until it can be adopted to a private individual or that plan to provide a hospice type service for the animals.
34 4. Ensure every live animal goes through an intake process where a photo and description of each animal is added to the Chameleon (or any successor system) database. Core vaccinations, deworming and any necessary flea treatment for animals to be sheltered shall also be administered and documented in Chameleon (or any successor system) during the intake process. The photos of all stray animals impounded at the County Shelter shall be made available for viewing by the public on the lost and found website page during the stray hold period. The photos of all adoptable animals past any necessary stray hold period kept at the County Shelter shall also be made available for viewing by the public on the Contractor

5. Ensure all owner contact information and attempts to contact the owners of animals wearing a license or identification tag, a microchip or any other kind of identification must be recorded in Chameleon (or any successor system). Behavior notes and all other information regarding the animal shall also be recorded in Chameleon (or any successor system).

6. Contractor will record in the Chameleon database Activity Record field responses with staff going on scene to the location of the activity differently than they will non-field responses, such as leaving phone messages, phone conversations, radio conversations, mailing letters, or any other activities performed when staff is not physically on the scene of the location of the activity. Recording field and non-field responses differently will allow accurate response reports to be generated. Response time reports for the City/County will only include field service calls when field staff is dispatch to a scene to handle a priority 1-5 call. It will include the time call was received, time dispatched, time the staff arrived on the scene and time the staff cleared the scene and what action the staff took.

7. Ensure all dogs, cats, puppies and kittens in a litter, weaned or not weaned, shall always be provided with an individual animal ID number in Chameleon (or any successor system) that is counted in both intake and outcome statistics.

I. Disaster response
Contractor will:

1. Coordinate with County in the event of a disaster/declared state of emergency.

2. Provide assistance to residents, local law enforcement, fire agencies and the County of San Mateo Office of Emergency Services to evacuate, shelter, and care for animals in the event of a disaster.

3. County

4. Work with other groups within the County during a disaster to ensure animals are safely evacuated and proper care is provided.

5. Ensure that staff or a third-party organization is available to respond to a disaster and are trained in the handling and care of all animal species within the County.

6. Ensure that each staff member responding to the disaster completes necessary FEMA forms.

7. Participate in a minimum of one (1) full-scale disaster exercise with San Mateo County Health or the Office of Emergency Services annually.
35 8. When staffing is available, supply 1-2 staff members during disasters that can rotate into the emergency operations center as needed by the County.

9. Ensure that all staff and volunteers responding to the disaster have completed ICS 100 & 700, as well as trained to the animal care and handling standards of the Contractor.

10. Train with other non-profits and groups in the County on evacuations, sheltering set ups and communications during a disaster, etc.

J. Mutual Aid
Contractor will:

1. Respond during a disaster in other Counties when requested by the San Mateo County Emergency Operations Center. Shelter and Field services must continue to operate in San Mateo County when providing support to other jurisdictions. Contractor shall use reasonable efforts to make staff available to assist with mutual aid, as requested and, when the Contractor reasonably determines that it is unable to do so, shall promptly provide a detailed written explanation of why it is unable to do so.

2. Contractor will work directly with San Mateo County Health and EOC during a disaster for mutual aid needs or supplies.

K. Recovery
Contractor will:

1. Work with animal owners on the pickup of their animals that have been cared for during the disaster. Thirty (30) days of Shelter fees can be waived by Contractor due to the disaster and include documentation in the database. If that animal needs to be held longer and more fees should be waived, Contractor will get approval from the County.

2. For those animals that owners wish to relinquish, the Contractor will look at alternative placement options for the animals such as adoptions, foster homes, or partner groups.

3. Plan Continuity of Operations Plan (COOP)

4. Within six (6) months of signing the agreement, Contractor will create a COOP for the provision of all contracted services in the event of a natural disaster or other significant unanticipated event that might otherwise disrupt services. Plan to be provided to the County annually.

VII. REPORTING
Provider will provide the following reports as specified within the required time period.

Monthly Reports DUE

1. Live animal intake kennel statistics (counts and
percentages) by:

Animal, including dogs, cats, other domestic
animals, and wildlife, Intake type, including
owner-surrender, confiscated, stray, owner-
requested, Outcome, adoption, reclaim, transfer,
euthanasia, died, missing, owner-requested
Upon Invoicing
36 euthanasia, etc. by Jurisdiction and summarized

2. Dead animal statistics (counts and
percentages) by: Animal, including dogs, cats,
other domestic animals, and wildlife
Upon Invoicing

3. Field pick-up and drop-off: Jurisdiction and
summarized, Patrol calls and response times by
priority to include jurisdiction of the call and
outcome
Upon Invoicing

4. Field activities response times are to be
calculated from the time of the call for field
service to when the Animal Control Officer arrive
on the scene of the field activity. Report should
include the minimum time, maximum time,
average time, targeted time percentage per
priority, both summarized and by jurisdictional
location, and results.

Upon Invoicing

5. List of citizen complaints by jurisdiction and
category, timeline for resolution, and associated
outcome.

Upon Invoicing

6. Number of citations issued, categorized by
ordinance and jurisdiction.

Upon Invoicing

7. Number of voidable license citations issues
and number voided with the purchase of a
license.

Upon Invoicing

8. Revenues collected by jurisdiction and type
and summarized.

Upon Invoicing

9. Financial reports reflecting budget to actual
comparison information for revenues and
expenditures by line item. As an addendum to the
financial report, a narrative outlining any
foreseeable issues or operational changes that
the Contractor believes may be necessary for
approval by the County.

Upon Invoicing

10. Staff report on FTE percentage of hours
spent at the County shelter.

Upon Invoicing

Quarterly Reports Due

1. License sales performed by Contractor by
species and type and jurisdiction with summary.

Upon invoicing for January, April, July, October

2. Rabies vaccination and microchipping clinics
statistics, with summary of total vaccinations
administered by species and type.

Upon invoicing for January, April, July, October

3. Dangerous & vicious animal cases by
jurisdiction and outcomes.

Upon invoicing for January, April, July, October

4. Animal Control/Humane Officer training Upon invoicing for January, April, July, October

5. Humane Investigation report to include number
of calls, contacts, notices, citations, and number
of cruelty/neglect cases submitted to the District
Attorney/City Attorney for prosecution with
outcome.

Upon invoicing for January, April, July, October
37 6. Maintenance and repair report listing all
vehicles and the service received.

Upon invoicing for January, April, July, October

Annual Reports Due

1. All monthly and quarterly statistics listed above
compiled for an annual summary of animal
statistics
Prior calendar year upon invoicing for February

2. Medical services staff training--list of staff, type of training, and dates of completion.

Prior calendar year upon invoicing for February

3. Field officer training - list of staff, type of
training, and dates of completion.

Prior calendar year upon invoicing for February

4. Animal care staff training - list of staff, type of
training, and dates of completion.

Prior calendar year upon invoicing for February

5. Annual dog and cat statistics in basic matrix
format, including live release rates and the live
release rate formula used.

Prior calendar year upon invoicing for February

6. Annual financial audit statement. December 31st of the current year

7. Customer satisfaction rating survey results. Prior calendar year upon invoicing for February

8. A Continuity of Operations Plan (COOP) for
the provision of all contracted services in the
event of a natural disaster or other significant
unanticipated event that might otherwise disrupt
services.

Prior calendar year upon invoicing for February

9. A written cost allocation methodology
procedure. Methodology should consist of items
such as how direct services, such as field and
shelter personnel and supplies, cost are
distributed vs administration personnel that may
be used for other than County contract related
services, if applicable.

Prior calendar year upon invoicing for February

10. A list of all current employed personnel by
position paid for in full or part by the Contract with
the salary/benefits and percent of FTE for each.

Prior calendar year upon invoicing for February

11. Personnel Organization chart with the
percentage breakdown of FTE positions and
number of . For those personnel whose
responsibilities extend beyond the contract, the
organizational chart will indicate the percent of
full-time equivalence assigned to each staff
member for the contract that will be correlated
with the amount funded by the contract.

Prior calendar year upon invoicing for February

12. Detailed budget narrative outlining estimated
revenues and expenditures for operating and
capital needs, explanation of operational and
financial changes requested from the prior year,
major operation strategy shifts, and any other
items necessary to provide the County with an
understanding of the proposed spending plan for

Current fiscal year upon invoicing for August
38 the following year.

13. Current policy and procedures (SOPs). Prior calendar year upon invoicing for February

14. Contractor will notify the County by January
31st of each year the number of bite quarantines
handled for the past calendar year, broken down
by city, compared to the average number of
quarantines for the prior three (3) calendar years
and include data on in-home vs. shelter.

Contractor will provide statistical information to
the Animal Control & Licensing Manager
sufficient to allow for completion of the Local
Control Rabies Activity Report required by the
State of California. The past years rabies
information to be provided to the County no later
than February 15th of each year.

January 31st and February 15th for prior calendar year

15. Provide the County with an inventory list of
County owned equipment.

Prior calendar year upon invoicing for February

16. Number of spay/neuter surgeries provided to
San Mateo County residents, transfer partners
and shelter animals, number of spay/ neuter
surgeries provided to residents outside of San
Mateo County, divided by category, and total
spay/neuter surgeries.

Prior calendar year upon invoicing for February

17. Humane Investigation report to include
number of calls, contacts, notices, citations, and
number of cruelty/neglect cases submitted to the
District Attorney/City Attorney for prosecution with
outcome.

Prior calendar year upon invoicing for February

18. Number of volunteers, hours and tasks
performed.

Prior calendar year upon invoicing for February

19. Provide the County with an itemized list of all
County fees collected.

Prior calendar year upon invoicing for February

20. Number and type of disaster trainings
conducted, both within their organization and with
other groups in the County.

Prior calendar year upon invoicing for February

21. Contractor to provide annually a detailed
outline of what they will provide or do for kennel
enrichment for all animals housed at the shelter.

Prior calendar year upon invoicing for February

39 VIII. PERFORMANCE MEASURES
Incentive Performance Measures

1. 85% of stray and owner-surrendered animals that go through their stray hold will be moved to a positive outcome within three (3) weeks of entering the shelter. Detailed description of reasons for not meeting this objective is required for animals not moved within three (3) weeks (with the emphasis looking to improve the positive outcome over the duration of the contract). Dangerous animals, quarantined animals and animals in protective custody are excluded.

2. 95% of rabies specimens will be delivered to the San Mateo County Public Health Laboratory within 48 hours of arriving at the shelter. Detailed description is required in the notes in the Chameleon (or any successor system) software for animals not delivered within 48 hours

3. 95% of all animals entering the shelter will be administered vaccinations, dewormer, and flea control as appropriate for their species.

4. All animals receive a health assessment within 24 hours of the animal entering the shelter.

5. All dogs and cats receive an equitable full behavioral assessment no longer than 96 hours of the animal entering the shelter (not including the day of intake). Detailed description is required for animals not receiving a complete behavioral assessment. Excluded: Dangerous animals, quarantined animals, animals in protective custody, euthanasia requests, exotic animals, and fowl.

6. 95% of all priority 1 calls are responded to within 1 hour of the reporting party calling Dispatch.

7. 95% of all priority 2 calls are responded to within 4 hours of the reporting party calling Dispatch.

8. 90 % of all priority 3 calls are responded to within 18 hours of the reporting party calling Dispatch.

9. 85% of all priority 4 calls are responded to within 24 hours of the reporting party calling Dispatch.

10. Monthly reporting of the number of citations issued to animal owners. A detailed explanation is required for ±15% variation in the measure.

11. Monthly reporting of the number of citations voided due to license purchase.

12. Provide monthly reporting on the number of animals euthanized in the field by species type and jurisdiction.

13. 100% of investigative reports including available witness statements, photos, videos, veterinarian bills, medical bills, bite reports, and police reports to the County within 3 calendar days prior to a hearing, excluding weekends and holidays.

14. 90% of dead animals are removed within 18 hours.

15. 90% of all quarantines will be responded to within 18 hours of the reporting party either calling Dispatch or a faxed bite report being received.

16. Dispatchers answer 90% of calls to Dispatch in less than 2 minutes and have no more than a 10% abandoned call rate.

17. Contractor will report quarterly and annually how many cruelty cases have been investigated and the number of cases sent to the District Attorney or City Attorney for prosecution.

18. All live animals entering the shelter with a non-urgent medical issue are examined by veterinarian/technician within 24 hours. Examinations may be visual for animals that are unsafe to handle. A detailed explanation is required for ±10% variation in the measure.

19. All officers will be trained as per state law within 1 year of hire date.

20. All staff that have access to human medical documents must be HIPAA trained by the Contractor within 30 days of hiring.
40 21. Provide initial response (e.g. phone call, email, in-person visit) to resident complaints within 48 hours of receipt, with intent to resolve within a reasonable period. No more than a 10% variance

22. 5% increase in the number of pets receiving a rabies vaccination at monthly vaccine clinic based upon

23. Number of pets receiving a license during the vaccine clinics shall increase 10% each year by using a baseline the prior fiscal year and for each consecutive year throughout the term of the contract.

24. Contractor shall only report out for response times those field activities logged into Chameleon (or any successor system) those that are dispatched to field staff and when they arrive on scene to the location of the activity. If other field services activities, such as phone calls, emails or text messages are logged into Chameleon (or any successor system) they will not be counted in the response time report.

25. Written audit and opinions shall be supplied to the County by December 31st of each calendar year for the previous fiscal year.

Non-Incentive Performance Measures

26. All received animals will receive a microchip scan. Detailed description is required for animals not receiving a microchip scan

27. Contractor to provide annually a detailed outline of what they will provide or do for kennel enrichment for all animals housed at the shelter.

28. Contractor will have written policies and procedures on euthanasia with a goal of ensuring that non-aggressive and healthy or treatable animals that enter the shelter system are not euthanized and that such animals are given a positive outcome through redemptions, adoptions and transfers to other organizations.

29. Contractor will have comprehensive written policies and procedures on Field Services. Policies and procedures should include proper care and handling of animals, emergency response procedures, how animals are placed into the vehicle, how officers will keep animals protected from the heat and cold in their vehicle, and standards for cleaning and disinfecting vehicles.

30. Contractor will have comprehensive written policies and procedures on Veterinary Medical Services. Policies and procedures should include proper care of injured and sick animals

31. All staff that will be euthanizing animals shall be trained per state law prior to performing euthanasia.

32. All staff and volunteers that will be responding to or caring for animals during a disaster shall take the ICS 100 & 700 online classes.

33. Contractor will be 100% in compliance with documentation outlined in this contract of animals entering the shelter. The County program manager of Animal Care and Control may conduct annual reviews of animal records.

34. Contractor shall maintain books, records, reports and accounts adequate to allow County and/or the auditor to fully evaluate, ass
contract funds under the Agreement, and allow inspection of same by County at any time with 24 hour notice, as outlined in this Agreement

35. Contractor shall use reasonable efforts to make staff available to assist with Mutual aid, as requested and, when the contractor reasonably determines that it is unable to do so, it shall promptly provide a detailed written explanation of why it is unable to do so:

36. Contractor will have comprehensive written policies and procedures on the Volunteer Program.

Contents of the policies and procedures should include, but not be limited to, the application form and process, job descriptions, selection and supervision, orientation and training, performance reviews, outline allowable and non-allowable activities, and a process for dismissal. 41 Exhibit B
In consideration of the services provided by Contractor described in Exhibit A and subject to the terms of the Agreement, County shall pay Contractor based on the following fee schedule and terms:

The total amount that the County shall be obligated to pay for services rendered in this agreement shall not exceed THIRTY TWO MILLION FIVE HUNDRED FORTY EIGHT THOUSAND NINE HUNDRED EIGHTY NINE DOLLARS AND NINETY ONE CENTS ($32,548,989.91). The county shall pay the contractor in accordance with the following terms:

A. Budget

1. Fiscal Year and Amount
a) 2021-22: $6,189,290.95
b) 2022-23: $6,327,480.28
c) 2023-24: $6,499,455.67
d) 2024-25: $6,674,024.00
e) 2025-26: $6,858,739.01

2. All funds paid to Contractor pursuant to this Services Agreement shall be used by the Contractor to meet its obligations herein.

3. A detailed proposed budget is included as Exhibit F.

4. An additional amount of $100,000 annually will be included in the total budget to provide an incentive. Ability to access incentive funds will be determined based on:
a) Should the Contractor achieve all 25 of the incentive performance measure targets the Contractor will receive 100% of incentive ($100,000).
b) Should the Contractor achieve 90% (23) of incentive performance measures the Contractor will receive $75,000.
c) Should the Contractor achieve 80% (20) of incentive performance measures the Contractor will receive $25,000.

B. Incentive Money

1. Incentive money is to be used to benefit the animals in San Mateo County (i.e., additional micro-chipping & vaccine clinics, mobile spay and neuter, disaster equipment, etc.) and Contractor will provide a summary report on how the incentive money was spent.

C. Cost Overruns

1. During any fiscal year of this Services Agreement, if the costs necessary and incidental reasonably anticipated, Parties hereto shall meet to discuss what steps should be taken.

In no event shall the County provide additional reimbursement for costs overruns without

42 2. If county or state laws are passed during the term of this Services Agreement that require a greater level of service, County agrees to negotiate in good faith with Cities and Contractor to reimburse Contractor for additional costs associated with implementing the new laws. Should such amendments result in significantly increased costs to Contractor, Parties agree to negotiate in good faith to agree on appropriate reimbursement. If Parties are unable to agree on reimbursement costs, Contractor shall document the increased costs and submit to the County Controller. The Controller will conduct an independent audit. Parties agree to

3. If current state laws are amended, repealed, otherwise changed or suspended during the term of this Services Agreement that reduce, increase, alter, or remove existing relevant mandates, County may require Parties to meet to discuss possible financial and operational impacts of levels of service per the change in law, including but not limited to any decrease in contract amounts paid to Contractor. If, within 90 days, Parties reach mutual agreement as to how to proceed as a result of the change in law, it shall be memorialized as an amendment to this Services Agreement. If, after no less than ninety (90) days, Parties do not reach mutual agreement as to how to proceed as a result of the change in law, the County Controller will conduct an independent audit. Parties then have Should Parties decide not to accept
ne
whether they wish to exercise early termination of this Services Agreement, as set forth below.
days results in this Services Agreement continuing without change or amendment for the duration of the term determined by Section 9 Term and Termination of this Services Agreement. Should either Party chose to exercise this early termination option, the Party shall do so by providing three-hundred-sixty-five (365) days prior written notice to other Party of its decision to terminate.

D. Modifications to the Budget or Payments

1. Any changes to the budget in Exhibit F must be requested in writing to the County no later than February 1 of the prior fiscal year for approval and a possible contract amendment by March of that year.

2. In the event that funds provided under this Agreement are expended prior to the end of the contract term period, Contractor shall provide ongoing services under the terms of this Agreement through the end of the contract period without further payment from County.

3. In the event that funds provided under this Agreement are not expended prior to the end of a fiscal year, Contractor shall have the opportunity to request funds no later than February 1 of the prior fiscal year to be used in the subsequent 12-month period with clear explanation for how those additional funds would be expended, and the County shall determine what amount of rollover funds will be available by March of the year.

E. Budget Monitoring and Exceptions

1. Revenue accounts shall be established for each service and shall be maintained separately by Contractor.

F. Method of Payment and Invoicing

1. Within 20 business days of the end of each month, Contractor must submit an invoice of actual costs for provision of services provided in Exhibit A for the prior month. 43 a) For the month of June each year, the following deadlines for invoices exist.

Specific dates for each fiscal year close will be confirmed in May of that year. (1) June 18, 2022
(2) June 17, 2023
(3) June 15, 2024
(4) June 21st, 2025
For the FY of July 2021-June 2022, Contractor may submit one initial invoice to the County by July 5th, 2021 in the amount of $500,000 as an advance payment for the fiscal year. The Contractor will reconcile this one-time advance payment on or before the September invoice. a) A similar arrangement for a one-time annual advance payment in July for each fiscal year will be in place.

2. Other than the advance payments in July of each year, which are reconciled by September of each year, Contractor will only invoice for actual costs.

3. Within 20 business days of the termination or expiration of the contract, Contractor must submit a final invoice and refund to County any advanced funds in excess of actual costs. annual fiscal obligation under this Agreement
exceed the amounts noted in Exhibit B Section A. Budget 1. Fiscal Year and Amount.

4. In the event that the County makes any advance payments, Contractor agrees to refund any amounts in excess of the amount owed by the County or credit a portion of such advance payments to the County. Contractor is not entitled to payment for work not performed as required by this Agreement
a) Invoices are to be sent to:

Lori Morton-Feazell
San Mateo County Animal Control and Licensing
225 37th Ave, PONY PBH319ACL
San Mateo, CA 94403
650-573-3726
[email protected]

b)
the County shelter
(1) Total amount of expenses incurred
(2) A breakdown of those expenses according to budget categories included in Exhibit F
(3) A payroll report of positions identified in the annual organizational chart (4) Associated reports on performance metrics
(5) A description of any accomplishments or challenges in providing services or changes to service provision.

5. Additional supporting documentation is not required to be submitted with invoices, however, the County can request supporting documentation on demand.
44 G. Signature Claims Certification and Program Integrity

1. Anytime Contractor submits an invoice to the County for reimbursement for services provided under Exhibit A of this Agreement, Contractor shall certify by signature that the invoice is true and accurate by stating the invoice is submitted under the penalty of perjury under the laws of the State of California.

2. The invoice must include the following language and signature line at the bottom of the form(s) and/or cover letter used to submit the invoice.

3. that this claim for services complies with all terms and conditions referenced in the Agreement with San Mateo County.

Executed at _______________ California, on __________20___ Signed ____________________ Title ____________________

45 Exhibit C
Excluded Services

1) Enforcement of regulations regarding the number of animals per household. 2) Removal and/or disposal of dead marine animals.
3) Pick up of baby birds.
4) Pick up of dead animals (deer, wildlife or domestic) from freeways or highways (1, 35 (Skyline Blvd.), 82 (El Camino Real), 84 (Woodside Road), 92, 101, 109, 114, 230, 280, 380). Freeways and highways are maintained by CALTRANS.
5) Respond to barking dog complaints or animal noise nuisance complaints. 6) Respond, whether dead or alive, to marine mammals/fish 7) Routine patrol of leash-law enforcement in parks, beaches, and other public places when other priority calls are pending. When there are no priority calls pending, Contractor will respond to complaints, calls, and observed violations regarding off-leash dogs in parks, beaches, and other public places where off leash dogs are not allowed, e,
and will maintain a patrol of no farther 500 yards from the vehicle. 8) Under no condition shall a dangerous or vicious animal designation when determined in accordance with relevant County or City ordinance, placed on an animal by a law enforcement officer of any contract area as shown in Exhibit B to be overridden by Contractor. In cases where the contract area law enforcement officer is designating the animal as dangerous or vicious, eded regarding prior history with
animal and/or owner.
9) Contractor will not accept animals at the County Shelter facility which belong to non-San Mateo County residents, unless an emergency arises requiring surrender of an animal. The County Shelter may accept stray animals that were found outside of San Mateo County. The Contractor shall attempt to immediately transfer the stray animal to the proper shelter in the County where it was found in a commercially expeditious manner.
10) Respond to pest-control issues (e.g., infestations, perceived or real, of rats, mice, insects, gophers, wasps, or spiders, etc.)
11) Investigate dog vs. dog incidents at County and/or City or other approved off-leash dog areas including dog parks, beaches, public parks, etc. Contractor will investigate dog vs. dog incidents at approved off leash dog areas as defined in the Ordinance. 12) Investigation of Animal Cruelty cases. -profit
organization. Contractor will ensure that the Humane investigators attend an annual training with investigate along with the number of cases sent to the District Attorney for prosecution. In the event that Contractor determines that its donor funding levels have been reduced to the level that it cannot sustain the Cruelty/Neglect program, the parties agree to meet and confer about whether or not to amend this Agreement to allow for County and City cost sharing to support the program, or the County and cities taking over responsibility for the costs of the program. 13) Spay & Neutering of Animals being placed for adoptions and low-cost surgeries for the public. -profit organization. Annually a report will be sent to the County that includes number of public and adoptable animal surgeries and number of surgeries performed for County residents and non-residents.
14) Care, treatment and rehabilitation of wildlife.

46 Exhibit D
Contract Areas

The unincorporated County and the following Cities have contracted for services pursuant to this Services Agreement:

47 Exhibit E
Fees to be Collected for Services Provided

In consideration of the payments set forth in Exhibit B, Contractor shall make every attempt to collect all of the following fees from the responsible party. Contractor has no authority to negotiate, waive, or retain fees.

A. The following are fees as outlined in the applicable County or City Fee Ordinance are to be charged and collected by the Contractor to the party taking responsibility of the animal and then sent on a weekly basis to the County by the Contractor.

1. Licensing revenue is to be itemized by jurisdiction and category type.in a format provided by the County.
a) All licensing fees as shown in San Mateo County ordinance 6.04.290 (a) and comparable City ordinances, including late fees whenever applicable.

B. The following are fees as outlined in the applicable County or City Fee Ordinance are to be charged and collected by the Contractor to the party taking responsibility of the animal and then sent on a monthly basis to the County by the Contractor.

1. All redemption charges as shown in San Mateo County Ordinance 6.04.290 (b) with the following limitation:
a) Impound charges and board costs for all animals except wildlife, unless wildlife is legally under permit for possession by a private citizen, including Vincent Bill Unaltered impound fees;
b) Transportation and trailing costs for equine, swine, bovine, sheep, goats, and any other animals Contractor deems advisable to move by trailer; and c) Animal rescue costs on private property.

2. All surrender, euthanasia and dead on arrival disposal fees, as shown in San Mateo County Ordinance 6.04.290 (c).

3. Quarantine fee Home, as shown in San Mateo County Ordinance 6.04.290 (d).

4. Dangerous Animal Permit permit, inspection, and signage fees, as shown in San Mateo County Ordinance 6.04.290 (e), (f), and (g).

5. Field Return fees, as shown in San Mateo County Ordinance 6.04.290 (h).

6. Breeding and Fancier Permit fees, as shown in San Mateo County Ordinance 6.04.290 (i) and (j).

7. Return check fees, as shown in San Mateo County Ordinance 6.04.290 (k).

8. Record request fees, as shown in San Mateo County Ordinance 6.04.290 (l).

9. Administrative hearing fees, as shown in San Mateo County Ordinance 6.04.115 (f) or the applicable city ordinance.

10. Fees collected for dead animal pick-up in public areas and disposal; trap rental; dead animal pick-up on private property; and citation clearance.

48 C. Uncollectable Fees

1. Contractor has no legal authority to negotiate, waive or retain fees for services unless provided by the applicable ordinance. Contractor shall collect all fees at the time of service or prior to release of impounded animal or release otherwise authorized per this Agreement.

2. Contractor shall use all reasonable efforts to collect the fee from the responsible party not release the animal until fees are paid unless refusing to release the animal would, in reasonable estimation, potentially jeopardize the safety of its staff, volunteers or facility.

3. Contractor will provide responsible party with a form provided by the County and agreed to by Contractor. Form will acknowledge debt for services provided by Contractor Parties shall meet when
necessary to agree upon the form.

4. If fees remain uncollectable after reasonable efforts, Contractor will send the following to the County on a monthly basis:
a) Excel spreadsheet showing the following:
(1)
(2) Service provided and fee charged by Contractor
(3) Reason Contractor was unable to collect fee at the time of service b) Itemized invoice
c) Returned check, if applicable

Exhibit F
Five-Year Budget (PROPOSED IN RFP)
Entity Name: Peninsula Humane Society
Year 1 Budget Year 2 Budget Year 3 Budget Year 4 Budget Year 5 Budget Budget Category Total Total Total Total Total
Personnel $3,432,241.20 $3,529,662.03 $3,635,551.89 $3,744,618.44 $3,856,957.00 Fringe $1,120,626.75 $1,152,434.65 $1,187,007.69 $1,222,617.92 $1,259,296.46 Operating Expenses $1,139,500.00 $1,162,290.00 $1,185,535.80 $1,209,246.52 $1,233,431.45 Equipment $78,200.00 $79,764.00 $81,359.28 $82,986.47 $90,058.36 Subcontracts $387,080.00 $373,221.60 $379,486.03 $385,875.75 $392,393.27 Other Costs $31,643.00 $30,108.00 $30,514.98 $28,678.90 $26,602.48 Total Expenditures $6,189,290.95 $6,327,480.28 $6,499,455.67 $6,674,024.00 $6,858,739.01 50 Attachment H
Health Insurance Portability and Accountability Act (HIPAA) Business Associate Requirements
I. DEFINITIONS

Terms used, but not otherwise defined, in this Schedule shall have the same meaning as those terms are defined in 45 Code of Federal Regulations (CFR) sections 160.103, 164.304, and 164.501. All regulatory references in this Schedule are to Title 45 of the Code of Federal Regulations unless otherwise specified.
a. Business Associate.
term "business associate" at 45 CFR 160.103, and in reference to the parties to this agreement shall mean Contractor.
b. Covered Entity. "Covered entity" shall generally have the same meaning as the term ent shall
mean County.
c. HIPAA Rules. "HIPAA rules" shall mean the Privacy, Security, Breach Notification and Enforcement Rules at 45 CFR part 160 and part 164, as amended and supplemented by Subtitle D of the Health Information Technology for Economic and Clinical Health Act provisions of the American Recovery and Reinvestment Act of 2009. d. Designated Record Set. "Designated Record Set" shall have the same meaning as the term "designated record set" in Section 164.501.
e. Electronic Protected Health Information. "Electronic Protected Health Information" (EPHI) means individually identifiable health information that is transmitted or maintained in electronic media; it is limited to the information created, received, maintained or transmitted by Business Associate from or on behalf of Covered Entity. f. Individual. "Individual" shall have the same meaning as the term "individual" in Section 164.501 and shall include a person who qualifies as a personal representative in accordance with Section 164.502(g).
g. Privacy Rule. "Privacy Rule" shall mean the Standards for Privacy of Individually Identifiable Health Information at 45 CFR Part 160 and Part 164, Subparts A and E. h. Protected Health Information. "Protected Health Information" (PHI) shall have the same meaning as the term "protected health information" in Section 164.503 and is limited to the information created or received by Business Associate from or on behalf of County. i. Required By Law. "Required by law" shall have the same meaning as the term "required by law" in Section 164.501.
j. Secretary. "Secretary" shall mean the Secretary of the United States Department of Health and Human Services or his or her designee.
k. Breach. The acquisition, access, use, or disclosure of PHI in violation of the Privacy Rule that compromises the security or privacy of the PHI and subject to the exclusions set forth in Section 164.402. Unless an exception applies, an impermissible use or disclosure of PHI is presumed to be a breach, unless it can be demonstrated there is a low probability that the PHI has been compromised based upon, at minimum, a four-part risk assessment:

1. Nature and extent of PHI included, identifiers and likelihood of re-identification;

2. Identity of the unauthorized person or to whom impermissible disclosure was made;

3. Whether PHI was actually viewed or only the opportunity to do so existed;

4. The extent to which the risk has been mitigated.
l. Security Rule. "Security Rule" shall mean the Security Standards for the Protection of Electronic Protected Health Information at 45 CFR Part 160 and Part 164, Subparts A and C. 51 m.Unsecured PHI.
unusable, unreadable, or indecipherable to unauthorized individuals through the use of a technology or methodology specified by the Secretary in relevant HHS guidance. n. Security Incident. "Security Incident" shall mean the attempted or successful unauthorized access, use, disclosure, modification, or destruction of information or interference with systems operations in an
includes all incidents that constitute breaches of unsecured protected health information.

II. OBLIGATIONS AND ACTIVITES OF CONTRACTOR AS BUSINESS ASSOCIATE

a. Business Associate agrees to not use or further disclose Protected Health Information other than as permitted or required by the Agreement or as required by law. b. Business Associate agrees to use appropriate safeguards to comply with Subpart C of 45 CFR part 164 with respect to EPHI and PHI, and to prevent the use or disclosure of the Protected Health Information other than as provided for by this Agreement. c. Business Associate agrees to make uses and disclosures requests for Protected Health Information consistent with minimum necessary policy and procedures. d. Business Associate may not use or disclose protected health information in a manner that would violate subpart E of 45 CFR part 164.504 if used or disclosed by Covered Entity. e. Business Associate agrees to mitigate, to the extent practicable, any harmful effect that is known to Business Associate of a use or disclosure of Protected Health Information by Business Associate in violation of the requirements of this Agreement. f. Business Associate agrees to report to County any use or disclosure of Protected Health Information not authorized by this Agreement.
g. Business Associate agrees to ensure that any agent, including a subcontractor, to whom it provides Protected Health Information received from, or created or received by Business Associate on behalf of County, agrees to adhere to the same restrictions and conditions that apply through this Agreement to Business Associate with respect to such information. h. If Business Associate has Protected Health Information in a Designated Record Set, Business Associate agrees to provide access, at the request of County, and in the time and manner designated by County, to Protected Health Information in a Designated Record Set, to County or, as directed by County, to an Individual in order to meet the requirements under Section 164.524.
i. If Business Associate has Protected Health Information in a Designated Record Set, Business Associate agrees to make any amendment(s) to Protected Health Information in a Designated Record Set that the County directs or agrees to make pursuant to Section 164.526 at the request of County or an Individual, and in the time and manner designed by County.
j. Business Associate agrees to make internal practices, books, and records relating to the use and disclosure of Protected Health Information received from, or created or received by Business Associate on behalf of County, available to the County at the request of County or the Secretary, in a time and manner designated by the County or the Secretary, for purposes of the Secretary determining County's compliance with the Privacy Rule. k. Business Associate agrees to document such disclosures of Protected Health Information and information related to such disclosures as would be required for County to respond to a request by an Individual for an accounting of disclosures of Protected Health Information in accordance with Section 164.528.
l. Business Associate agrees to provide to County or an Individual in the time and manner designated by County, information collected in accordance with Section (k) of this Schedule, in order to permit County to respond to a request by an Individual for an accounting of disclosures of Protected Health Information in accordance with Section 164.528.
52 m.Business Associate shall implement administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity, and availability of EPHI that Business Associate creates, receives, maintains, or transmits on behalf of County. n. Business Associate shall conform to generally accepted system security principles and the requirements of the final HIPAA rule pertaining to the security of health information. o. Business Associate shall ensure that any agent to whom it provides EPHI, including a subcontractor, agrees to implement reasonable and appropriate safeguards to protect such EPHI.
p. Business Associate shall report to County any Security Incident within three (3) business days of becoming aware of such incident. Business Associate shall also facilitate breach notification(s) to the appropriate governing body (i.e. HHS, OCR, etc.) as required by law.

Hercules City CouncilMay 24, 2022

Hercules City Council
May 24, 2022