CITY COUNCIL STAFF REPORT
Meeting Date: June 27, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-22 AUTHORIZING THE CITY
MANAGER TO EXECUTE AN UPDATED AGREEMENT AND SIDE
LETTER AGREEMENT WITH THE CONTRA COSTA COUNTY
ANIMAL SERVICES DEPARTMENT AND RESCINDING RESOLUTION
NO. 32-06
SYNOPSIS
The Contra Costa County (“County”) Animal Services Department (“Animal Services”) provides animal services on behalf of all cities in the County (except Antioch, which has its own program). At the June 6, 2022 City Council meeting, the City Council reviewed Animal Services’ proposed new service agreement. The City Council directed staff to work with Animal Services to clarify the cost reconciliation language in the agreement. Staff has completed this task and has proposed a side letter agreeing to the County’s interpretation of the cost reconciliation method, and recommends that the City Council approve the proposed resolution authorizing the City Manager to execute the proposed agreement and side letter with County Animal Services and rescinding Resolution No. 32-06.
DISCUSSION
Background
Animal Services presented the background on the development of the proposed new service agreement between itself and each of the cities for which it performs services at the June 6, 2022 City Council meeting and explained the details of the agreement. The Council questioned the language in Section 13.d of the proposed agreement regarding the cost reconciliation method, directed staff to work with Animal Services to clarify the language and intent of the section, and continued the item to June 27, 2022.
On June 14, 2022, Animal Services sent the City a revised agreement correcting the language regarding the reconciliation formula in Section 13.a.iii.B, from “the sum of the population of the unincorporated area plus the population of all cities for which the County provides Animal Services” to “the sum of the population of all cities for which the County provides Animal Services.”
Analysis
The current (2006) agreement between the City and Animal Services, which automatically renews each year, does not contain a specific description of services to be rendered, nor performance standards. The updated agreement that Animal Services is proposing primarily includes services that are mandated by the State, creates accountability by listing target response times for each activity type, defines what is covered under deceased animal services, describes what other services are not covered, and codifies performance reporting within the agreement.
As of June 23, 2022, the Cities/Towns of Brentwood, Clayton, Danville, Hercules, Moraga, Oakley, Orinda, Pinole, Pittsburg, San Pablo, San Ramon, and Walnut Creek already approved the new agreement. At the June 6th meeting, the Council questioned the Annual Fee and cost reconciliation language in Section 13.d of the proposed agreement and found that the language did not clearly explain the per capita cost/fee model as the County described it in response to the question.
The table below explains the difference in interpretation (see italicized words) in the language of section 13.d between the City and County:
Section 13.d City Interpretation County Interpretation
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.
Each year, the County will
prepare a reconciliation report
of actual costs incurred by the
County to provide Animal
Services to the City during the
immediately preceding year to
ensure the Annual Fee paid by
the City covers only actual
costs incurred to provide
Animal Services to the City.
Each year, the County will
prepare a reconciliation report
of actual costs incurred by the
County to provide Animal
Services throughout the County
during the immediately
preceding year to ensure the
Annual Fee described in
Section 13.e paid by all
contracting cities covers only
actual costs incurred to provide
Animal Services throughout the
County.
The reconciliation report will
be completed and sent to the
City in the month of August
for each fiscal year.
The reconciliation report for
Animal Services provided to
the City will be completed and
sent to the City in the month
of August for each fiscal year.
The reconciliation report of
countywide costs will be
completed and sent to each 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.
Any cost savings for Animal
Services provided to the City
for that fiscal year will reduce
the City’s Annual Fee in the
following fiscal year.
Any cost savings to provide
Animal Services throughout the
County for that fiscal year will
reduce the Annual Fee for each
city on a per capita basis in the
following year to provide
Animal Services throughout the
County.
While the City’s interpretation of the language in Section 13.d is different from the County‘s interpretation, staff notes that there may be ambiguity in the language and recommends Council agree to abide by the County’s interpretation, as set forth in the proposed side letter to the agreement, in order to resolve the issue. The Animal Services Director has provided the attached letter confirming the side letter will be signed by the County upon approval of the agreement by the Council and execution of the agreement by the City Manager.
Based on information provided to staff by the Animal Services Director, the difference between Pleasant Hill’s per capita cost for countywide services and the cost for services within Pleasant Hill over the past two fiscal years is minimal. The City does not currently have trained staff to be able take on animal services effective July 1, 2022, and the cost and liability to hire and train employees, purchase equipment and vehicles, effectively respond to rabies or other animalrelated outbreaks, and secure shelter facilities and spay and neuter services would be significantly more than contracting with the County. City staff believes it to be beneficial to the City to execute the updated agreement, which has more clarity and commitment from Animal Services on service levels and contributes to the financial sustainability of Animal Service programs, and the side letter.
FISCAL IMPACT
The City currently pays Animal Services approximately $232,672 annually from the General Fund. Under the proposed agreement, it will pay Animal Services approximately $272,040 in FY 2022/23 and $310,952 in FY 2023/24. The City’s Finance Manager has included the projected costs in the proposed FY 2022/23 – FY 2023/24 Biennial Budget.
The updated agreement includes a defined fee structure for FY 2022/23 and FY 2023/24, which converts to a formula-based fee structure that will commence in FY 2024/25 as described at the June 6, 2022 meeting and in the agreement.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Staff recommends that the City Council approve the proposed resolution authorizing the City Manager to execute an updated agreement and side letter agreement with the Contra Costa County Animal Services Department and rescinding Resolution No. 32-06.
ALTERNATIVES TO RECOMMENDED ACTION
The City Council could not adopt the proposed resolution and provide direction to staff on how to move forward with providing animal services to the public.
ATTACHMENT(S):
Proposed Resolution
Exhibit 1: City-County Animal Services Agreement
Exhibit 2: City-County Animal Services Side Letter Agreement Letter from the County Regarding the Side Letter Agreement Prepared by: Danielle K. Habr, Principal Management Analyst/City Clerk Approved by: June Catalano, City Manager