HomeMy WebLinkAbout8.2 Construct Animal Shelter~
CITY OF DUBLIN
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AGENDA STATIIKENT
CITY COUNCIL MEETING DATE: April 27, 1992
SUBJECT: Construction of New East County Animal Shelter Facility
(Prepared by: Richard C. Ambrose, City Manager)
EXHIBITS ATTACHED: Exhibit 1:
Exhibit 2:
Exhibit 3:
Exhibit 4:
Letter from Steven Szalay, Alameda
County Administrator dated March 30,
1992.
Draft Agreement
Cost Estimate for East County Animal
Shelter
East County Animal Shelter Construction
Project Financing Summary
RECOr~NDATION: Approve in concept the City of Dublin's participation
~ in a Joint Powers Agreement to construct the East
County Animal Shelter as a equity partner.
FINANCIAL STATEN~NT: Estimated cost of the East County Animal Shelter
is $4,750,000, if all five agencies participate.
The City of Dublin~s share of the estimated
construction and cost of issuance is based on the
City of Dublin's pro rata share of the annual live
animals which are handled at the Santa Rita Animal
Shelter. In Fiscal Year 1994-95, the City of
Dublin would incur its first debt service payment
of $112,419. In Fiscal Year 1995-96, the City's
annual debt service would be $61,590. These costs
are estimates based on the City's current share of
the animal shelter workload. Debt Service would
be annually adjusted based on the number of
animals handled for each City and the County for
the previous year. If the City of San Ramon
chooses not to participate in the joint project, ~~
the above cost could increase. The amount of the
increase is unknown at this time in that the
shelter would be in all likelihood decreased in
size.
DESCRIPTION: The City of Dublin presently contracts with the County
of Alameda to provide animal shelter services for City residents. The City
is currently billed for operational costs associated with the Animal
Shelter facility through an Animal Shelter Agreement. ~These operational
costs are based on the workload generated from Dublin residents. For
example, the City .of Dublin~s current share of the workload at the animal
shelter is presently estimated at 15.5~.
For some time the City Managers of Dublin, Livermore, Pleasanton, and San
Ra.*RQn have been meeting with the Alameda County Administrator regarding the
need to replace the existing twenty-seven year al.d a~i~~~ shAlter facility.
This facility is no longer adequate to serve the needs of the jurisdictions
that use it. In addition, the County is interested in relocating the
shelter from its present location to a location in the vicinity of Gleason
Avenue near the Santa Rita Jail facility. During the last several.years, a
number of different alternatives have been explored which include the
following.
COPIES TO:
ITEM NO. ~
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1. Each City taking care of its own animal shelter needs.
2. The Cities in the valley jointly building an animal shelter
independent of the County.
3. The County building a shelter and the construction costs recovered
through the service charges that each city would pay through their
respective shelter agreement.
4. The Cities and the County sharing the cost of construction. Under
this alternative, each jurisdiction would become an equity partner in
the facility and would have an equal voice in constructing the
facility, as well as future administration and operation.
Of the four alternatives identified above, alternative #4 appears to offer
the best solution for the City of Dublin~s animal shelter needs.
Alternatives #1 and #2 would allow a greater City control over shelter
operations, but neither one is cost effective since the County would not be
a participant and hence, not a fiscal contributor. The County wants to
maintain a shelter in East County and is willing to share in the costs.
Under alternative #3, the County participates in the cost, but the Cities
have no control over the construction and management of the shelter. With
alternative #4, the County will participate in the cost of the shelter and
the Cities will have an equal partnership in the venture. This partnership
will continue as long as the Cities continue to use the shelter facility.
The minimum amount of time that the City would have to commit to using the
shelter facility would coincide with the term of the construction debt (30
years). However, the proposed draft agreement would allow a city to
withdraw from the agreement provided that the city is able to sell its
equity share to another member agency. The drawback is that if the city is
not able to sell its equity share to another partner, the city would be
obligated to continue paying for this debt service even though it may not
want to continue to use the shelter. It should be pointed out, however,
that this drawback would be applicable to any shelter development project
which involved debt service.
Fiscal Impact
The cost to the City of Dublin is broken down into three separate
components.
1. An equitable share (1/5) of the cost of the current land value. This
will amount to $51,000 as a one time cost. This share at the land
value assumes that the City of San Ramon would also be a partner in
the agreement.
2. A share of the construction costs which will be based on the
percentage of live animals that are handled at the facility. This
cost will be adjusted annually based on the number of live animals
handled for the City of Dublin for the previous year. The estimated
cost of construction is $4,750,000, but this is probably a high
estimate and Staff anticipates that the bids on the project will be
less. It should also be pointed out that if San Ramon did not
participate, the size of the shelter would be adjusted accordingly and
as a result the shelter would cost less.
If the shelter is constructed sometime during the Fiscal Year 1992-93,
the City.of Dublin would not begin paying debt service until Fiscal
Y~ar ?p~4-95. The City's first full year of debt service assuming a
13.76~ usage factor (see Exhibit 4), would cost the City approximately
$112,419 in Fiscal Year 1994-95 and $61,590 in Fiscal Year 1995-96.
Thereafter, the City's annual debt service would vary slightly based
on the City's prior usage of the shelter. It is important to note
that these costs are estimates only and will vary based on the final
costs of construction and debt issuance and the City's share of the
facility usage at the time of the first payment.
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3. An annual maintenance and operational cost will also be based on the
percentage of live animals that are handled at the facility. This
. cost will also be adjusted annually and will be based upon the same
criteria as the City's annual debt service payment.
Recommendation
A similar Staff Report is being presented to the City Council of the City
of Livermore on April 27 and to the Pleasanton City Council on May 5th. It
is the joint recommendation of the City Managers of these cities that we
proceed as an equity partner with the County to construct the animal
shelter. As an equity partner, the cities will not pay any more for the
shelter than they would if the County proceeded on its own and billed the
cities back for the cost of the structure. Once the agencies have given an
indication of whether or not they want to participate in this venture, it
would be appropriate for Staff to bring back a resolution that would
approve the attached draft agreement and authorize the City of Dublin~s
participation in this joint venture.
a:427anml.agenda#9
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C'aCIFOAN\P
STEVEN C.SZALAY
COUNTV ADMINISTRATOR
March 30, 1992
Deborah Acosta, City Manager
City of Pleasanton
200 Bernal Avenue
Pleasanton, CA 94566
Richard Ambrose, City Manager
City of Dublin
P.O. Box 2340
Dublin, CA 94568
Dear Deborah, Rich, Lee and Herb:
SUSAN 5. MURANISHI
ASSISTANT COUNTV ADMINISTRATOR
Lee Horner, City Manager
City of Livermore
1052 S. Livermore Avenue
Livermore, CA 94550
Herb Moniz, City Manager
City of San Ramon
2222 Camino Ramon
San Ramon, CA 94583
SUBJECT: CONSTRUCTION OF EAST COUNTY ANIMAL SHELTER
It was good to meet with you last week and to identify the information you will need
in order to discuss participation in the financing of the East County Animal Shelter with
elected officials in your jurisdiction. The enclosed packet includes the following:
• Final draft of the formal agreement;
• Project cost estimate;
• Detailed financing reports prepared by First Boston;
• Financing summary
The final draft of the formal agreement has been reviewed and approved by County
Counsel with the modifications suggested by you incorporated into the document
including clarifying interest and buyout provisions.
The project cost estimate was prepared by the County Public Works Agency. It is a
preliminary estimate but does include: utilities, site preparation and construction of the
main facility and its surrounding improvements. Project cost estimates are currently put
at $4,750,000 with a main building of 14,750 square feet, designed to handle the projected
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• R~CEIVED
AP R 2 1992
C O U N T Y A D M I N I S T R A f-~YRQ~ puBLIN
1221 OAK STREET • SUITE 555 • OAKLAND. CALIFORNIA 94612 • 14151 272-6984
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East County Animal Shelter
Page 2
March 30, 1992
size and mix of the animal population to be served. The cost of construction is currently
put at $147 per square foot. Charlotte Martinelli lias contacted Goerge Miers and Paul
Gumbinger, two local architects with considerable experience designing and building
facilities for animals. We may find that the actual total project costs will turn out to be
somewhat lower than the preliminary estimate but, after conversations with Mr. Miers
and Mr. Gumbinger and without completed design schematics, it is premature to adjust
that figure downward at this time. The use of a modular structure was also explored.
Given SPCA standards and the need for water proof inembranes on the floors and walls,
this option would be practical only for the office portion of the facility.
The detailed financing reports prepared by First Boston are based on a certain set of
assumptions. We expect the sale of securities to be completed by July 1, 1992 and that
the transaction will be structured with insurance, capitalized interest and a debt service
reserve fund. The financing structure of the issue has not been finalized yet. However,
the underwriters will provide a separate debt service schedule for this project with
adjustments which reflect actual project costs once they are known. The life of the
financing will be thirty years with the final payment due in the year 2022. No principal
payments will be made until construction of the project is completed. During
construction, interest payments will be made through the use of the capitalized interest
fund. It is expected that the interest rate will be as follows: Total interest cost equals
6.689% with the net interest cost put at 6.544%. Of course, these rates may be adjusted
up or down, deperiding on prevailing market conditions at the time of sale. However,
under these conditions, the total project issue size would be $5,685,000 with the first
principal and interest payments due from the participating entities in fiscal year 1994/95.
The financing summary prepared by my office shows estimated annual payments by
jurisdiction for the first two.years of the financing and incorporates the assumptions for
outlined above as well as those outlined in our draft agreement for this particular
project. The distribution of costs among the participating entities for the purposes of
these estimates is based on current live animal usage in accordance with provisions in
the draft agreement. In fiscal year 1994-95 when the first debt service payment is due,
the distribution will be based on fiscal year 1993-94 actual usage. If your council requires
further cash flow estimates, use the debt service report prepared by First Boston to
calculate your estimated share of the annual debt service payments for the remaining
years of the financing.
As I stated in my letter to you of February 20, 1992, the County intends to proceed with
its plans to finance and construct a new animal shelter. Should your jurisdiction choose
not to share in the debt service payments, the cost of construction and financing will be
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East Counry Animal Shelter
Page 3
March 30, 1992
fully recovered by the County in the future as part of the annual charge for using the
new shelter. You have asked for additional time to consider these options and as such,
I will extend the date to receive your written commitment of participation to Friday,
April 24, 1992.
The advantages of participating in this project and acquiring an equity interest in the
building include: involvement in the planning and design of the facility, partnership and
voice in overseeing the operation of the shelter, a potentially strong position for taking
over the faciliry should the County decide at some future date to get out of the animal
shelter business. A disadvantage to participation from a city's perspective might be the
increased liability and responsibility that comes with the shared equity interest in the
building. ,
I hope that the information provided here and the attachments enclosed will assist you
in discussing this project with your respective councils. If you have any questions or
concerns, please feel free to contact me or Charlotte Martinelli of my staff at
(510) 272-3872.
Very truly yours,
Steve . Szala
County Adminis ator
cc: w/attachments
Sheriff
SCS:CM:cm
animal.doc
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FINAL DRAFT
FINAL DRAFI'
AGREEMENT AMONG
THE COUNTY OF ALAMEDA AND THE CITIES OF
DUBLIN, LIVERMORE, PLEASANTON AND SAN RAMON
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, Pleasanton and San Ramon (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, Pleasanton, and San Ramon 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.
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2. EQUITY 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
equal in value to the entitys total contribution to the principal debt service
payment, plus $51,000 which represents one-fifth of the current raw land value.
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
percentag~ 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 fiscal year. The cost sharing ratio will determine the
payment of debt service for the PROJECT on an annual basis. Each entitys
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. '
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 costs include all costs and expenses incurred in connection with the
shelter construcHon, 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.
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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 litigaHons
related to design, construction, or other project work.
e. County Public Works project management cost, including County oversite
and inspection.
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 agreeznent for shelter services and operations similar to current
agreement shall remain in effect unless modified in writing by the entities. A
similar contract will be implemented with the City of San Ramon once the shelter
facility is operational.
7. SHELTER OPERATIONS ADVISORY COMMITTEE
A shelter operations advisory committee consisHng 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.
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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 oE 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.
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13. SUSPENSION AND TERMINATION
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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 entity's equity interest will be
made by the participating entity buying out the withdrawing entity in the first
quarter of the following fiscal year.
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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
City of Pleasanton
Peter Snyder, Mayor
City of Dublin
COUNTY OF ALAMEDA
Cathie Brown, Mayor
City of Livermore
Mary Lou Oliver, Mayor
City of .San Ramon
APPROVED AS TO FORM
Mary King, President Kelvin H. Booty
Alameda County, Board of Supervisors County Counsel
Animal.cm
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_ Cost Estimate For East County Animal Shelter
March 17, 1992 Job #9078
Site Costs
Utilities:
Gas and electric lines
Electrical service
Water line 8"
Water tank
Sewer line
Sewer pump
Sewer connection
$75,000
proportion of costs to be determined
$150,000
$750,000
$30,000
$150,000
25 000
$1,180,000
Grading:
Paving
Landscaping
Building costs:
Main Shelter 14,750 SF * C~3 147.00/sf =
Other structures
_ Corral for large animals
Foundation for freezer
Truck wash
$450,000
$70,000
50 000
Contingency
Professional fees:
Printing costs:
$570,000
$2,167,500
$75,000
$15,000
$15,000
$212,500
$250,000
$15,000
Testing: $100,000
Public Works Project Management Cost 150 000
Total estimated cost for animal shelter 750 000
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~AST COUNTY p41MRl 5HELTEF GONSTRUCT104 PRC;ECT (SFNTA klTp PROPEATY) FINANCIN6 5~MMARY
Estimated Construction Cost; f4,75n,nnp
Estimated Issue Size: 55~685,OOQ
Estimated rate of interest: TIC= 6.6@9x; NIC= 6.544X
Estimated Cost Sharing Ratios; Based on the 7. of Live Anioals fra~ each Participating durisdi~tion
(including San kaeon! ?he r9ct sharing rat;o mi]] be adjusted annually baaed on prior year a~tual usage.
------------------------------------°°=______'='=°___===___=°___:___:__=='="='===________________=____==____=___===___===______=°=_=____
t E5TIMATED ESTIMATED E5iIMATED 1 ESTIMATED ANNUAL UEAT SERVICE t RAk LAND PYMT i TOTAL ! ESTIMATED ANNUAL DEBT SERVICE !
i ANNUAL GO5T CON5TRUCTION/ t FY 94195 (FIAST YEAR) t FY 94/95 IESTIMATEDt fY 95/96 (5ECONU YEAR) i
CITYJ ~ LIVE ANIMALS 5HARINE COST DF IS5UANCEt INTEREST PRINGIPAL TOTAL PRIN/INT 1 (f255,000) IFY 94/95 t INTEREST PRINCIPAL iOTAL PRIN/INTt
COUNTY 1(BASED OM CURRENT)(BASE~ ~N CURRENT} (f5,685,000) i(5368,355) (f80,00n) (5446,355) t Split 5 aays f PYMT 1(f362,5q5! If85,000) (f447,595) t
-----{----------------------------------------------------t ------------------~--------------------~ --------------1---------t--------------------------------------- t
CUBLiN t 5n5 Ij.16Y, f782,2b8 ! f50,411 f11,008 fb1,419 1 f51,000 tf112,419 ! 149,844 f11,696 f61,590 1
~ F 1 1 t 1
PLEASANTON t 1,021 27.98X f1;590,8?1 t f102,520 f22,3B7 f124,90b t f51,000 If175,908 1 f101,461 f23,786 f125,253 1
~ ~ t ~ ~ t
LIVERMORE t 1,619 44.11X f2,5q7,906 ~ f1E1,b15 f35,Z42 f196,907 t f51,000 1f247,907 1 t159,957 f37,497 f147,454 1
~ F t 3 ! i 1
SAN AAIiON t qi3 11.25g f639,75h t f41,221 f9,003 f5Q,230 t f51,000 tf101,250 I f40,804 f9,565 f50,370 I
~ ~ ~ ~ r ~
COUNTY 1 108 2.896 f164~199 1 f10~581 f2~S11 fIZ~892 i t51,000 t t63,892 t f10~473 f2~455 f12~928 I
------------I---------------------------------------------------~ ---------------------------------------t --------------1---------i----------------------------------------t
TOiAL 1 3,h'0 IOO.OOX f5,b85,OQD t f366,355 f80,Opp i446,355 t f255,000 if701,355 ! fS62,595 t85,000 f447,595 1
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A5SUMPTIONS: .
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I) All five entities pill usv the facility and share in the payWent of the annuai deht service in atcordance with the '•~~-~r ''~~ ~
Mith the teras and conditions ou+l:ned in ±he draft agreeaent. ' ~?;~k ~ ,
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2) Construction ~ill be coapleted by I11/94. , •
3) The first debt service payments by entities Mill 6egin 12/1/94.
4) The project will he Tinarced over t~ years aith final payment in 2Q22.
51 Each entity will share equally in offsetting the current raw land valae Mith a payaent of f51,000 ta the County at the coepletion of construction
3/26/92
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