Agmt21 Animal Control Agreement Between San Mateo County and Cities

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Michael P. Callagy County Manager/ Clerk of the Board County Government Center 400 County Center, 1st Floor Redwood City, CA 94063 650-363-4121 T 650-363-1916 F www.smcgov.org July 7, 2020 Robert Barron, Finance Director 91 Ashfield Road Atherton, CA 94027 Re: Notice of Construction Costs for the Animal Care Shelter Facility Dear Robert, On or about September 9, 2014, the municipalities within San Mateo County entered into an agreement (“the Agreement”) to share the construction costs of a new animal care shelter facility. The agreement provides that the County of San Mateo will advance the funds for construction to be repaid by the municipalities according to their share, through a 30-year, interest-free lease agreement. On March 6, 2020, construction of the new animal shelter building was completed, and certificate of occupancy was issued. The old shelter building was demolished shortly thereafter, and final project completion (with exception of photovoltaic installment) is slated for approximately July 30, 2020. Final project costs are reasonably determinable and anticipated to be approximately $28,300,000. The municipalities’ final shared responsibility is anticipated to be $25,700,000 or $856,758 annually. The County will not seek reimbursement for $2,600,000 in project costs comprised of an upgraded heating ventilation air conditioning ($600,000), a photovoltaic system ($1,200,000), miscellaneous site improvements related to landscaping, fencing, and parking ($530,000), and relocation of a City of Burlingame water line ($270,000). The final column of Attachment B to this letter sets forth each municipalities’ final annual lease amount, as calculated in the manner proscribed by the Agreement. Final costs exceed the June 2018 estimate by approximately 3%. This marginal increase is a result of escalated regional construction costs and unforeseen circumstances encountered during construction, including requirements for ongoing air-quality monitoring, soil remediation and treatment, fire safety system modifications, PG&E delays, and necessary and reasonable end-user logistical design modifications. The County of San Mateo has worked diligently and successfully to minimize these additional costs while delivering a high-quality facility that will stand the test of time. Attachment 3 - Memorandum of Agreement Regarding Funding For Construction Of An Animal Care Shelter