AgdaPkt 2014-03-24 Closed and Regular

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7.3.A. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager March 24, 2014 SUBJECT Memorandum of Agreement Regarding Funding to Share in the Cost of Construction of an Animal Care Shelter on Airport Boulevard in San Mateo to Serve Redwood City and Other Local Municipalities RECOMMENDATION Approve by resolution a Memorandum of Agreement with the County of San Mateo to fund construction of an animal care shelter on Airport Boulevard in San Mateo to serve the parties of the existing Animal Control Services Agreement through a 30-year interest-free lease using the proposed construction cost allocation methodology outlined in the attached Memorandum of Agreement. BACKGROUND Since 1952, San Mateo County has contracted with the Peninsula Humane Society (PHS) for animal control field and sheltering service. All twenty cities in the County have, in turn contracted with the County for these services. Under this contract, these 21 agencies share the cost of services based on a formula that factors agencies' proportionate use of field services and shelter services. Animal Control services are provided by PHS in a 45,000 square foot building at 12 Airport Boulevard in San Mateo. The building is owned by PHS and the County owns the land and leases it to PHS at a nominal rate. In 2011, PHS moved its charitable functions, such as animal adoption, from the Airport Boulevard shelter to its recently constructed 57,000 square foot building on Rollins Road in Burlingame. The Animal Control functions - those tasks for which the County contracts — remain at the Airport Boulevard shelter. Those functions include: receiving and housing stray animals; serving as the location for the public when looking for lost pets or surrendering unwanted animals; sheltering animals; spay/neuter clinic; and, vaccination clinic. Licensing, micro-chipping, veterinary care and animal behavior work are performed at both locations. The County has determined that the shelter is, at a minimum, in need of significant repairs. Under the terms of the current agreement, starting FY 2012-13 all jurisdictions agreed to share in the cost of necessary maintenance and repairs to the Airport shelter up to $50,000 per year. PHS leadership has stated that it will be reluctant to renew the agreement with the County and cities when it expires in 2015 if the new agreement does not include a plan to address the current condition of the Airport Boulevard shelter.