September 10, 2024
Police Department
DATE: September 10, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Bisa French, Chief of Police
Subject:
Second Amendment to the Contra Costa County Animal
Services Agreement
FINANCIAL IMPACT: The estimated expenditure of $1,239,566 is included in the proposed Police Department budget for Fiscal Year
2024-2025 (Account String 01191021-400221).
PREVIOUS COUNCIL
ACTION:
July 19, 2022
November 28, 2023
STATEMENT OF THE
ISSUE:
The City of Richmond entered into an agreement with the Contra Costa County Animal Services Department for
State mandated services provided to the City’s residents.
The City is entering the first of three one-year term
extensions and needs to add funds and extend the
termination date.
RECOMMENDED ACTION:
APPROVE and AUTHORIZE funding in the amount of
$1,239,566 for Contra Costa County Animal Services for
the Fiscal Year 2024-2025, for a total contract amount
not to exceed $3,130,321; and extend the contract
termination date to June 30, 2025, for a term from July 1, 2022, through June 30, 2025 – Police Department (Chief
Bisa French 510-621-1802).
AGENDA
REPORT
September 10, 2024
DISCUSSION:
The City of Richmond entered into a City-County Animal Services Agreement (Agreement) with the Contra Costa County Animal Services Department (County) to provide State-mandated animal-related services to the City’s residents. The Agreement began on July 1, 2022 and had a two-year term with an ending date of June 30, 2024.
The Agreement was amended by the County to correct section 13.a.iiii. and was approved by Richmond City Council on November 28, 2023. The Agreement will automatically renew for successive three-year periods until either party terminates the Agreement by giving the other party 90-days advance written notice of termination.
The County uses the formula below and is based on the City’s population according to the California Department of Finance Demographic E1 report published at the beginning of each Calendar year. For this reason, the City was not able to accurately estimate the total amount due for Fiscal Year 2024-2025 when the Agreement was first taken to Council on July 19, 2022:
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 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 $1,620,000, 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 per capita [($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.
On May 28, 2024, the County sent a letter to the City regarding the FY 2024/25 annual fee (Attachment 1). The letter states the following:
On February 29, 2024, Contra Costa Animal Services (CCAS) advised each of the 18 contracted cities of the per capita cost set at $12.11 for FY 2024/25 pursuant to the City-County Services Agreement. After engaging with our city partners, additional budgetary analysis, and per the direction of the County Board of Supervisors on April 23, 2024, the Department reduced its FY 2024/25 expenditures budget by $1,224,922. This reduction included an adjustment of the
September 10, 2024
proposed personnel allocations, along with city fee and general fund contributions.
Therefore, the adjusted FY 2024/25 City Fees, which are equal to the total County cost, minus the sum of the animal licensing and user fees, minus the County General Fund contribution, per section 13.a.iii in the City-County Services Agreement, are now:
+Total Animal Services Cost $ 16,603,285 (adjusted)
-Total Licensing and User Fee Revenue $ 1,650,000
-Total General Fund Contribution $ 5,585,389 (adjusted) =Total City Fees $ 9,367,896 (adjusted)
The adjusted per capita rate has been revised to $10.92. Based on your city’s population according to the California Department of Finance Demographic E1 report as of January 1, 2024, the revised cost for animal services for Fiscal Year 2024/25 for the City of Richmond will be $1,239,566.
Per the letter, the City of Richmond is mandated to pay $1,239,566 for services provided in FY 2024/25. The City of Richmond Police Department staff believes the County services are the most economically feasible way to provide animal services to its residents and therefore asks that City Council approve the one-year term extension for FY 2024/25 in the amount of $1,239,566.
DOCUMENTS ATTACHED:
Attachment 1 – FY2024/25 City Fee Letter
Attachment 2 – Revised Services Agreement
Attachment 3 – Original Agreement