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HomeMy WebLinkAbout19G - OC ANIMAL CARE SRVS UPDATEi CITY COUNCIL MEETING DATE: APRIL 5, 2016 TITLE: COUNTY OF ORANGE ANIMAL CARE SHELTER AND SERVICES UPDATE (STRATEGIC PLAN GOAL NO. 1, 5) I CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: 19-42001TA i7 ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2 "a Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Receive and file an update on the Orange County Animal Care Shelter and services. DISCUSSION On March 24, 2016, Orange County Community Resources notified the City Manager's Office of the County's decision to move forward with the construction of a new Animal Care Shelter. Given the conditions of the aging shelter, the County will be expediting the construction of the new facility with an expected completion date of Fall 2017. The new facility will be constructed over a 10 -acre parcel at the former Marine Corps Air Station Tustin Base for an estimated $35 million. The cost of the new facility will be shared amongst all participating cities. As such, the County is requesting that cities who wish to engage services at new Animal Care Shelter to commit and execute a Participation Agreement and Agreement for Provision of Animal Care Services by April 30, 2016. No cities will be added for a three -year period following the execution of the agreements. As part of our due diligence, Police Department staff contacted animal care shelters from surrounding communities and has determined that other than the County of Orange Animal Care Shelter, no other animal care shelter in the County has the capacity to address Santa Ana's animal care needs. The animal care facilities that City Staff contacted include: • Irvine Animal Care Center • Laguna Beach Animal Shelter • Orange County Humane Society (in Huntington Beach) • Westminster Animal Care Center • Mission Viejo Animal Services Center • Dana Point Animal Shelter (in San Clemente) 19G -1 Orange County Animal Care Shelter and Services Update April 5, 2016 Page 2 In order to participate in the County's new Animal Care Shelter, the City will need to provide a response no later than April 11, 2016 stating the projected date in which the City Council will take action on both the Participation Agreement and Agreement for Provision of Animal Care Services. As such, Staff will bring forward an agenda item for City Council consideration at the April 1gth City Council meeting. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 1 - Community Safety, Objective #5, (provide high quality Police and Fire /Emergency Medical Services response within the City of Santa Ana). FISCAL IMPACT There is no fiscal impact associated with this item CaNes'Rojas Chief of Police Santa Ana Police Department Exhibits: 1. Orange County Community Resources letter dated March 24, 2016 2. OC Animal Care Services Summary of Major Terms 3. Maximum Construction Costs and Participation Formulas 4. OC Animal Care Facility Site Parcels 19G -2 0 IR A N G E C O U N T Y C om:rr uni Resources Our commun/ty. Our Commitment. 19G -3 March 24, 2018 STEVE FRANKS Exhibit 1 DIRECTOR OC COMMUNITY RESOURCES Dear City Manager; 7ENNIFER HAWKINS, DVM DIRECTOR RE: ORANGE COUNTY ANIMAL CARE SHELTER & SERVICES OC ANIMAL CARE As you are aware, the County of Orange is moving forward on the construction RENEE RAMIREZ of a new Animal Shelter at the former MCAS Tustin Base. This project Is being INTERIM DIRECTOR expedited given the condition of our aging Shelter. Considerable progress OC COMMUNITY SERVICES has been made, including; DULIA BIDWELL . Terms & conditions have been negotiated for Site Control of the MCAS INTERIM DIRECTOR HOUSING COMMUNITY Tustin parcel consistent with the Notice of Intent approved b the P Pp Y DEVELOPMENT & HOMELESS South Orange County Community College District (SOCCCD) and the PREVENTION Board of Supervisors last December. The proposed Lease Agreement and Amended Land Exchange Agreement are scheduled for STACY BLACKWOOD presentation to the Board of Supervisors for approval on April 12, DIRECTOR 2018, OC PARKS . Conceptual design and CEQA work is completed, and an RFP for a Design /Build contract has also been completed. The recommended HELEN FRIED firm and proposed Design /Build contract are currently scheduled for LIBRARIAN The April 12, 2018 meeting of the Board of Supervisors, OC PUB QC PUB LIC LIBRARIES Over the last several months, County staff and a team from the current contract cities have been negotiating contract terms for a Participation Agreement and the Agreement for Provision of Animal Care Services. It is my understanding that the contract cities have been briefed on our progress by the city negotiating team and the Mayor terms have been shared, In summary, the Participation Agreement involves a $35 million dollar project on the 10 acre parcel at MCAS Tustin. The County is providing the land and the initial $5 million toward the project, with the cities providing a $30 million contribution. The Participation Agreement Includes a schedule of the distribution of city costs (assuming a $35 million project in total and participation by all 18 contract cities,) The contract allows for payment of the city payments over a 10 -year period, Several cities are exploring alternate service models. Please be advised that there Is scalablllty In the proposed Design /Build contract. We Intend to work with the Design team and our contract cities as to address sizing (and related cost reductions) to reflect the service needs for the actual number of cities that opt into contracts, The Agreement for Provision of Animal Care Services involves a 10 -year term, effective from the date of execution. Neither party may terminate without OFFICE OF THE DIRECTOR cause. Further, individualized service levels and fee structures may be 1770 NORTI4 BROADWAY SANTA ANA, CA 92706• negotiated by city P r ovidin g that the resultin g service level does not conflict 2642 with existing law or endanger public health, PHONE: 714,480,2788 PAX: 714,480.2899 At this point in time, we request a commitment from your city in the form of 19G -3 ORANGE COUNTY ANIMAL CARE SHELTER & SERVICES PAGE 12 MARCH 24, 2016 executing the two agreements. Attached is the final Participation Agreement and the Agreement for Provision of Animal Care Services, These agreements were reviewed by the City Attorney for Anaheim and the City of Garden Grove. A summary of Major Terms for both agreements Is attached, Please note that the exhibits for the Participation Agreement includes a site map, Initial conceptual design work, a copy of the executed NO[ between SOCCCD and the County, the maximum construction costs and participation formula (by city), payment schedule (for the 10 -year city payments), and the Amended Services Agreement, Although we had initially requested city commitments earlier in April, we are now requesting cities execute both agreements by April 30th. There will be no cities added after that for a three year period while design and construction Is completed and the initial operational protocols are developed at the new site. Please provide a response by April 11t' with the projected date your City Council will take action and your planned recommendation as available. This information is important as these two agreements will be presented to the Board of Supervisors for action on April 12, 2016. I would also like to take this opportunity to share that the County is taking considerable efforts to improve and upgrade the services provided by OC Animal Care. Most recently, the County has secured the services of a Shelter expert to assist in evaluating our current practices, with the expectation that she and her team will make recommendations regarding "best practices" for Shelter operations. We expect that you will be contacted as a part of this effort. The final recommendations will be reviewed with contract cities, animal advocates, rescues, and the general public in the preparation of an action plan. Dr, Jennifer Hawkins, Shelter Director, is available to provide details on this project and respond to any questions you may have regarding the services provided by OC Animal Care, Thank you for your assistance in expediting this matter. Your continued partnership in providing Animal Shelter and Field Services is appreciated. Please give me a call at 714.480- 2788 with any questions you may have regarding the two agreements, Yours truly, ,�. 41,2�y Date OC Community Resources C: Frank Kim, County Executive Officer Mark Denny, Chief Operating Officer Attachments: Summary of Major Terms Participation Agreement Agreement for Provision of Animal Care Services 19G -4 Exhibit 2 OC ANIMAL CARE SERVICES NEW AGREEMENTS FOR SHELTER CONSTRUCTION AND SERVICES MAJOR TERMS Participation Agreement (New Shelter) 1. Establishes a Design Advisory Board consisting of three (3) city representatives. Two of the representatives must be from cities individually constituting more than 8% of the total usage of the existing shelter (Anaheim, Santa Ana, Garden Grove or Orange). 2. If at any time the County elects to discontinue providing animal sheltering services, the cities have an option to take over the operation of the shelter from the County under a ground lease arrangement. This option is in play for 50 years. 3. Maximum shelter cost is based on a $35M shelter with the County contributing the first $5M toward costs incurred after April 1, 2016. The remaining $30M is divided proportionally among cities based on the previous 5 years of shelter usage. See attached draft exhibit D. 4. Payments may be made in advance, or at the election of each individual city, over a ten year period. For those cities electing the 10 year payment period, payments will be due quarterly beginning in October 2016 and will include an additional funding cost (0.77 %) See attached draft exhibit E. 5. After year 5, each city's respective percentage share of the maximum construction costs shall be recalculated based on the same formula as set forth in draft exhibit D but using then current statistical data. If any city's respective percentage share is altered by the recalculation by more than 5 %, then each city's total share of the maximum construction costs shall be recalculated so that the originally calculated percentage shall be applied to one half of the maximum construction costs and the recalculated percentage shall be applied to the second half of the maximum construction costs. 19G -5 6. No city will be added to OC Animal Care program for a period of three years to allow for appropriate sizing and establishment of operational protocols for the new shelter. New cities will be required to pay a pro rata portion of the maximum construction costs based on the formula in draft Exhibit D. New monies will first be applied toward any necessary shelter expansion and the remainder will be deposited into a shelter maintenance and repair fund to off -set future costs to all contract cities. 7. Any excess funds (maximum construction costs less actual construction costs) shall be credited to cities against future charges under each city's Services Agreement. 8. Participating cities are making a ten (10) year operational commitment. 9. Maximum construction costs may increase under the following conditions: I. The recalculation under number 5 above. There will be winners and losers, if applied. II. One or more cities fail to execute the Participation Agreement. The maximum shelter cost of $35M is based on all existing contract cities signing the Participation Agreement. If any cities do not sign the Participation Agreement, then the maximum cost to the remaining cities may increase. While there is built -in scalability in the County's design -build contract, there are also some fixed costs that cannot be adjusted. III. When a city fails to make payment under the 10 year payment plan. If a city defaults on its payments, the County will pursue all legal remedies and the remaining cities may also pursue legal remedies. Should the non- paying city pay any amount owing, the increased cost to other cities will be reimbursed. Agreement for Provision of Animal Care Services A. Ten year term. County will still issue an annual Notice of Intent. 19G -6 B. May be terminated by County immediately upon default by a city under the Services Agreement or the Participation Agreement. C. County will no longer be able to terminate without cause. D. City and County may agree to individualized services if the resulting service level will not conflict with state or federal statutes and not endanger the public health. E. Cities may adopt fee amounts that differ from the County's fee schedule. F. The FOAB is changed to the City Managers Association Animal Care Committee (CMAAC) and will be constituted at the discretion of the cities. The County no longer has the right to change the constitution of the committee. G. No less than once every three years, the County will engage an external auditor to review city billings. H. The Services Agreement must be executed simultaneously with the Participation Agreement. IMPORTANT NOTE The County is requesting that cities approve and execute the agreements by April 1. If an individual city requires more time, they should contact Steve Franks directly at (714) 480 -2788. 19G -7 1. Exhibit 3 Maximum Construction Costs and Participation Formula Maximum Construction Costs $35,000,000 $5,000,000 County Contribution $30,000,000 Contract Cities Funding Share *Costs included are identified in Section 2.1 of the Participation Agreement. Participation Formula The total projected cost to the Contract Cities is based on $30.0 million as the total contract city contribitution. The distribution among the Contract Cities is an estimate assuming participation by all 18 cities currently contracting with the County for OCAnimal Shelter services. Estimates do not include Additional Funding Costs associated with a 10 -year Payment Schedule. Estimated costs for each city are based on a historical five -year average of Animal Charge Days, expressed as a percentage of the total. Animal Charge Days represents the number of days animals receive board and care at OCAC. Calculation of pro rata portion of Maximum Construction Costs for new cities added after initial contract execution and three year period as set forth in Section 3. of the Participation Agreement will be based upon comparability to similar sized cities under contract with the County based upon a five year average annual Shelter Utilization figure using actual admissions and shelter days for the new city with their current /previous Shelter provider. In the absence of available shelter data for a new city, the pro rata portion will be based upon comparability to similar sized cities under contract with the County based upon city population as identified in the most recent California State Department of Finance publications. Grove is Hills Forest cho Santa Juan Capi Park Total 19G -8 Page 1 of 1 Distribution of Cities' Share of Maximum Construction Costs $ 7,017,529 23.39% $ 367,454 1.22% $ 568,874 1.90% $ 777,973 2.59% $ 2,240,317 7.47% $ 4,142,755 13.81% $ 1,829,954 6.10% $ 222,122 1 0.74% $ 555,539 1.85% $ 2,467,472 8.22% $ 548,846 1.83% $ 209,618 0.70% $ 270,168 0.90% $ 6,867,112 22.89% $ 612,821 2.04% $ 791,152 2.64% $ 46,853 0.16% $ 463,442 1.54% $ 30,000,000 100.00% 19G -8 Page 1 of 1 r 4' F �r , r 5eprnynRr wh Us NOW �1 6t 3 ?t'.+ a��} %u V 5 IO y A V Y 4 p y . � e�i „� vaueadNSZ :gam ap 4�s 'x 4xcs4x e„Sa a ex n`s[pa, , ` { S 19G -9 Im M . >' o m 1'm r= LM Y 4 }i In t ri{ T I ■� 'I If ■� II r 4' F �r , r 5eprnynRr wh Us NOW �1 6t 3 ?t'.+ a��} %u V 5 IO y A V Y 4 p y . � e�i „� vaueadNSZ :gam ap 4�s 'x 4xcs4x e„Sa a ex n`s[pa, , ` { S 19G -9 Im M . >' o m 1'm r= 19G -10