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HomeMy WebLinkAboutItem 7.1 East Cty Animal Shelter JPA (2) CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: August 24, 1992 SUBJECT: Joint Powers Agreement for Financing Construction of East County Animal Shelter (Prepared by: Paul S. Rankin, Assistant City Manager) EXHIBITS ATTACHED: Exhibit 1: Proposed Joint Powers Agreement Exhibit 2: Resolution Approving Agreement RECOMMENDATION'yt' ~ ; Adopt Resolution. FINANCIAL STATEMENT: The City of Dublin estimated Annual Debt Service beginning in Fiscal Year 1994-95 is projected to be $71,412. This cost would be in addition to the City's share of the Operating Expense. (Fiscal Year 1992-93 Shelter Operating Costs are budgeted at $34,605) DESCRIPTION: At the City Council meeting on April 27, 1992, the City Council approved in concept the participation in the joint financing of a new Animal Shelter. At that time, the City Council also reviewed a draft Joint Powers Agreement. The proposed facility will be constructed by Alameda County on County property adjacent to their Corporation Yard on Gleason Drive. The original concept reviewed by the City Council provided an opportunity for the City of San Ramon to participate in the project. Subsequent to that time the City of San Ramon has elected to pursue services within Contra Costa County. Therefore, representatives of the County of Alameda and the cities of Dublin, Livermore, and Pleasanton have proceeded with the development of a final agreement. In addition to the deletion of San Ramon's participation, two additional changes have been made to the agreement subsequent to the City Council review last April. The draft agreement had provided that the County would retain title to the land and that each agency would hold an equity interest in the structure. The County had requested that the $255,000 value of the land be shared equally among the participating agencies. Without San Ramon's participation, each agency would contribute $63,750. The cities expressed a concern that the agreement provided for a financial contribution towards the land without receiving an ownership interest. The County has agreed to eliminate the one-time lump sum contribution for the land. Since this was to be paid in 1994-95, this has reduced the amount originally estimated to be the City of Dublin share for Fiscal Year 1994- 95. Unfortunately, the elimination of San Ramon has increased each of the participating agencies share of the Debt Service. The annual Debt Service required to be paid by each agency will fluctuate based upon the percentage of live animals handled from a particular jurisdiction. For example, the current Dublin cost estimates are based upon the fact that in 1991 our jurisdiction accounted for 16~ of the animals housed at the Shelter. In order to allow each agency the opportunity to include funding in the annual budget, Section 3 of the Agreement was amended to require the County to provide information no later than March 1st as to the share of debt service. COPIES T0: ITEM No. rI. ~ CITY CLERK FILE D ~ ° ° y Q The current financing summary and estimates are based upon an estimated project cost of $4,750,000. The costs associated with financing the project would result in a total estimated issue of $5,685,000 in tax exempt instruments. The actual cost of the project will determine the total shared cost. The Assistant City Manager has been designated to participate in the design process to keep the cities informed and represent the financial interest in designing a cost efficient project. The need for adequate animal shelter facilities has been identified by Alameda County as a deficiency for several years. The County has worked cooperatively with the affected agencies for the past 5 years to develop a long term solution. If the cities did not participate as equity partners, the County has indicated that they would recover the development costs through shelter operating costs. Both the cities of Livermore and Pleasanton have approved the proposed agreement. The joint effort appears to be the most cost effective means to address this need. The current schedule anticipates obtaining all approvals by October 1st. The County is concurrently seeking proposals for Architectural Services. Provided that Plans and Specifications and the design process take one year to complete, this would allow for construction to begin in the fall of 1993. The target date for operation of the new facility would be in the summer of 1994. City Staff will also be involved in the Architect selection process. Given that the project is located in the City of Dublin, it is anticipated that the City will process the project with a Site Development Review. Staff recommends that the City Council adopt the resolution approving the agreement and authorize the Mayor to execute the agreement. a:824she1.agenda~l0 i~a AGREEMENT AMONG THE COUNTY OF ALAMEDA AND THE CITIES OF DUBLIN, LIVERMORE AND PLEASANTON FOR THE CONSTRUCTION COST OF ANIMAL SHELTER THIS AGREEMENT is entered into by and among the County of Alameda (hereinafter "COUNTY") and the cities of Dublin, Livermore and Pleasanton (hereinafter "CITIES) and shall be effective as of This Agreement is entered into in consideration of the following matters: WHEREAS, the COUNTY has determined that the construction of a new animal shelter on its Santa Rita property is necessary; and, WHEREAS, the COUNTY has existing shelter operations contracts with the Cities of Dublin, Livermore, and Pleasanton; and, WHEREAS, the Cities of Dublin, Livermore and Pleasanton and the County of Alameda have expressed a desire to enter into a joint powers agreement pursuant to Government Code section 6500 and following to share in the cost of constructing a new animal shelter (hereinafter "PROJECT"), and WHEREAS, by entering into this agreement, the COUNTY and the CITIES do not intend to create a joint powers authority; and, WHEREAS, COUNTY AND CITIES desire to enter into this Agreement in order to set forth the agreement of the participating entities regarding the cost-sharing of the construction of the PROJECT; and WHEREAS, the participating entities described above agree to contract with respect thereto; NOW THEREFORE, the participating entities agree as follows: 1. PURPOSE OF AGREEMENT The COUNTY and the CITIES agree to enter into a joint powers agreement to share in the cost of the construction of an animal shelter on the COUNTY's Santa Rita property. Although the COUNTY will construct and hold title to the PROJECT, the CITIES will acquire an equity interest in the structure and improvements as provided for in this agreement. ~-2 N -q Z- ~~l .1 s~~~~ f ~1 1 '..ze.r ~ r,.7 a . Z~ ~ -2- 2. E UITY INTEREST The COUNTY shall retain full title to the land. Each entity will acquire an equity interest in the structure and improvements only, and that interest will be proportionate to the entity's total contribution to the principal debt service payment. An entity may withdraw from the agreement before full retirement of the debt only if another participating entity or entities agree(s) to buy out the withdrawing entity's share. Should an entity wish to withdraw after the full retirement of the debt, there will be no buy out provision. 3. COST SHARING The cost sharing ratios for the COUNTY and the CITIES will be based on the percentage of live animals handled at the Santa Rita Animal Shelter for each participating entity, as indicated in Attachment A, for the first 12 months of this agreement. The COUNTY intends to issue municipal securities with which to finance the cost of constructing the PROJECT, including all cost of issuance fees and charges related to the PROJECT. The cost sharing allocation (debt service amount) will be adjusted annually based on the percentage of live animals handled for the previous calendar year. The cost sharing ratio will determine the payment of debt service for the PROJECT on an annual. basis. Each entity's annual share of debt service shall clearly identify the portion attributable to interest and the share attributable to principal for the purpose of calculating equity interest held by each entity. The COUNTY shall notify each CITY of its percentage of live animals handled for the previous calendar year by March 1 of the following year. 4. PAYMENT The COUNTY shall bill the CITIES for their share of the debt service payment semi-annually, 60 days prior to the date on which the total debt service payment is to be made. CITIES shall pay COUNTY within 30 days of date of billing. This provision shall not preclude CITIES from exercising the option of prepaying the entire annual debt service in one lump sum for any given year within the first quarter of the fiscal year. 5. CONSTRUCTION COSTS Construction =osts include all costs and expenses incurred in connection with the shelter construction, including without limitation, the following: a. Payment due to contractors' and subcontractors' for work and services performed including change-order work and payment in settlement or satisfaction of claims and/or judgments. 3~~ -3- b. Cost of on-site and off-site improvements. c. Fees for building permits, licenses, and inspection; d. Fees of the developer, engineers, surveyors, architects, attorneys, and others providing professional services necessary to supervise or complete the project, and to settle, defend and prosecute any claims or litigations related to design, construction, or other project work. e. County Public Works project management cost, including County oversite and inspection. f. Premiums for contractors' faithful performance and for mechanics' lien bonds; g. Recording costs and filing fees; h. Such costs as reasonably may be incurred in connection with Construction, including purchase of sewer capacity and water hookups. i. Provisions for the contractors' insurance coverage for the handling and/or removal of hazardous material (including asbestos) in connection with the construction of the PROJECT. 6. SHELTER OPERATIONS CONTRACTS A separate agreement for shelter services and operations similar to current agreement shall remain in effect unless modified in writing by the entities. 7. SHELTER OPERATIONS ADVISORY COMMITTEE A shelter operations advisory committee consisting of the County Administrator (or designated representatives) and the City Managers of the CITIES (or their designated representative) will be formed. The purpose of the committee will be to review the ongoing operations and maintenance of the Animal Shelter once the shelter is completed and to assure that the equity interest of each participating entity does not deteriorate through inappropriate maintenance and operations. . l b~~ -4- 8. MODIFICATION OF CONTRACT This agreement fully expresses the agreement between the participating entities. Any modification, amendment, or alteration of the terms and conditions of this agreement must be by means of a written document approved by all participating entities. No oral conversation between any officer or employee of the participating entities shall modify any of the terms and conditions of this agreement. 9. INDEMNIFICATION It is understood and agreed that pursuant to Government Code Section 895.4, each entity (the "indemnitor") shall, to the extent permitted by law, defend, . indemnify and save harmless every other entity (the "indemnitee"), and its officers and employees, from all claims, suits or actions of every name, kind and description resulting from indemnitor's performance of the Agreement, excluding any injuries, death, damage or liability resulting from the negligence or willful misconduct of the indemnitee, or its officers or employees. 10. BOOKS AND RECORDS COUNTY shall maintain complete books and records of their activities concerning this Agreement during the Construction of the Animal Shelter and for ongoing operation costs. Each participating entity, at its sole cost and expense, shall have the right to inspect and/or audit of such books and records from time to time. There shall be strict accountability of all funds and report of all receipts and disbursements. 11. SEVERABILITY If any term or provision of this agreement shall to any extent, be determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this agreement shall not be affected thereby, and each term and provision of this agreement shall be valid. 12. TERM OF AGREEMENT The term of this agreement will coincide with that of the issue term of the construction financing bond as negotiated by the County to finance the construction of the PROJECT, except that the equity interest set forth in Section 2, shall survive the term of this agreement. The term may be extended with the written agreement of the participating entities. ~0~" l -5- 13. SUSPENSION AND TERMINATION Neither the CITIES nor the COUNTY shall be able to terminate obligations contained in this agreement prior to the retirement of the full debt, except as provided for in Section 2 above. In accordance with the conditions set out in Section 2, any participating entity may terminate its participation in this agreement, with or without cause, by providing six (6) months notice, in writing by January 1, to the other participating entities. For purposes of determining the withdrawing entity's payment obligations and equity interest, withdrawal shall be effective six (6) months from the date written notice is provided to the other participating entities. Payment of the withdrawing entit}~s equity interest will be made by the participating entity buying out the withdrawing entity in the first quarter of the following Fiscal year. y -6- 14. The participating entities may execute this agreement in counterpart. IN WITNESS WHEREOF, the Board of Supervisors of the COUNTY OF ALAMEDA has caused this agreement to be subscribed on its behalf by the COUNTY and the CITIES have subscribed the same through its authorized officer, the day, month, and year first above written. The persons signing on behalf of the CITIES warrants under penalty of perjury that he or she is authorized to bind for the respective CITIES. CITIES Kenneth Mercer, Mayor Cathie Brown, Mayor City of Pleasanton City of Livermore Peter Snyder, Mayor City of Dublin COUNTY OF ALAMEDA APPROVED AS TO FORM Mary King, President Kelvin H. Booty Alameda County, Board of Supervisors County Counsel n~~~.m, ?9-J~~ I -92 POPL~LATION PR^•iE":NS ~QA TrE ~:VER!4DREiAMADGK V.a.LLE'' , C yAR?I4ELLI YEAR , 1990 1995 2000 t"i105 2C1ii? , :°rLI" _i ~yq _5,9+;n t4 1^Q 4^> ;:,n °Q' LI'~ERrOAE 55,848 61,500 67,500 7?,250 89,000 ; PLEASANT~N 49!74? b+?,204 65,900 74.,100 ?9,800 : U9INCCRPOnATSD-v!~UNTY 5,300 5,60.0 7,300 7,9~?0 3~7i,p , TOTAL 134,119 153,104 174,700 208,854 240,500 ANIMAL POPULATION PROJECTIONS BY JURISDICTION YEAR , JURISDICTION 199t ACTUAL 1995 2000 2005 2010 DUBLIN 561 611 881 1,290 1,651 LIVERMORE 1,779 1,599 1,155. 2,009 2,314 PLEASANTON 1,088 1,577 1,711 1,927 2,075 ; UNINCORPORATED-COUNTY 110 146 190 205 213 ; TOTAL 3,544 3,993 4,541 5,430 6,253 DISTRIBUTION PROJECTION BY TYPE OF ANIMAL , D06S 1,428 1,737 1,976 2,362 2,720 CATS - 1,996 2,132 2,426 2,900 3,339 : C~T~ERS 120 124 141 lb8 194 ; i TOTAL 3,544 3,993 4,542 5,430 6,253 ASSUMPTIONS: 1) THAT THE 1992 ABA6 PRELIMINARY POPULATION PROJECTIONS USED FOR PLEASANTON AND THE UNINCORPORATED ARc9 AnE arC' AND THAT THE POPULATION PROJECTIONS PROVIDED 8Y THE CITIES OF DUBLIN AND LIVERMORE ARE ACCURATE 2) THAT LIVE ANIMAL HANDLING AT THE SHELTER MILL REMAIN CONSTANT AT AN AVERAGE OF 2.bX DF THE HUMAN POPULATIDN NOTE: 1991 ACTUALS BY JURSDICTION ARE: DUBLIN-2.4X; PLEASAMTON-2.iX; LIVERMORE-3.1X; UNINCCRPORATED-2.11X' 3) THAT THE DISTRIBUTION CF DOGS/CATS/OTHERS MILL REMAIN RELATIVELY CONSTANT AT 43.5x, 53.4X AND 3.1X :_S~=:TIvE THE5E FI6'31?E5 REPRESENT A 4 YEAR AVERAGE DISTRI9UTIDN A;ANiPuP.iiOl • CAST CDUNT'! ANiMAI SHNz _ri CDN5TRUCTION PRDJECT 'SANTA RiTA PRGPERTY; :,NANCIN6 SUMMARY csziaated Constriction Cost; f4,75n,^n~ - Estiaated issue Si:e: f`.685,!,.'•±: Estiaat?d 'ate of inter?s`. =,,.~9X; 4i'== 5.544;, EStiadt2"u _it Sharing", Ratias; Based on 'he of ~1Ve anlaai5 fr0a each Part;~ipdting JJri5d1Ct10r: ;~zclud~ng San Raaan} The cost sharer:g ratio Mill b? adjus+ed annually based on prier year actual usage. t 1991 _:Ti"p?E~ ET1MATFD I ~=?i!!ATED ~NN++A' 'f ^r:,,+,r; ~ ~_bT t I u!"'a .~ST _1ySTRI~~Ti~~N~ I CV 94/95 !r'1RST yEa.R.j I i ~'ii'"~_S S!-+:4.;46 ''"v. F 1c.SUANCEt :4TE4E?T PRINCi"rG~ ?nTAL ~'F:1Ni_'i' : ~~,_.NTY i H~NCLED !BASED DN 1991 ACT, ',f5,b85,^,po} ; !f3bb,?551 (fA0 Q00} if446,35s} t ------------t-----------------------------------------------------1 -------J---------~---------------------t DuB;.iN t 567 1b.00X f909,53b t f58,b13 f12,799 (71,412 t t t ~ ?-EaSANT'-'N t 1 '8S ~-X fl a ~ :n.7 ,74:~,~62 t s112,47p f24:5b4 f1:?,~:-?? I t t : 1VER'!DRE t 1,179 50.20X 62,853,729 t (183,901 640,158 f224,t"7 t f i t COUNTY t 110 3.lOX (176,453 t (11,371 f2,483 i13,B54 t '_________~________________t uTA? t 3,`44 1G9.,,C, f5,b55,000 t s,;bb,355 f80,0!?0 faa ,~~,s, t f f t ASSUMPTIONS: 1} All four entities Mill use the facility and share in the payaent of the annual debt service in accordance Mith the Mith the teas ar,d conditions outlined in the draft agreeient. 2; Construction Mill be coapleted by 111194, 3) The first debt service pay~ents by entities Mill begin 12/1/94. 4; The project Mill be financed over 30 years with final pay~ent in 2022. ~a~ ~ RESOLUTION NO. - 92 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING AN AGREEMENT WITH THE COUNTY OF ALAMEDA AND THE CITIES OF DUBLIN, LIVERMORE, AND PLEASANTON FOR THE CONSTRUCTION OF AN ANIMAL SHELTER WHEREAS, the City of Dublin currently utilizes the Alameda County Animal Shelter; and WHEREAS, the current Animal Shelter is inadequate to serve the long term needs of the agencies utilizing this facility; and WHEREAS, Alameda County has undertaken a project to construct a new Animal Shelter to service the cities of Dublin, Livermore, Pleasanton, and unincorporated Alameda County; and WHEREAS, through a Joint Powers Agreement, the agencies have developed a means to jointly finance the construction of the new facility; and WHEREAS, the City of Dublin would retain an equity interest in the new facility. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the Joint Powers Agreement for the construction of a new Animal Shelter. BE IT FURTHER RESOLVED that said agreement shall only become effective upon execution by all of the participating agencies. BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute the agreement on behalf of the City of Dublin. PASSED, APPROVED AND ADOPTED this 24th day of August, 1992. AYES: NOES: ABSENT: Mayor ATTEST: City Clerk a: resoshel.agenda#10 ~ ~