The City of Cupertino, in a letter to Sunnyvale City Manager, Robert LaSala, dated January 29, 2003, requested that Sunnyvale submit a proposal to provide animal control field services for the City of Cupertino.

Sunnyvale and Cupertino are both members of a seven-city joint power authority (Silicon Valley Animal Control Authority, SVACA) for animal sheltering and animal control services. The City of Cupertino currently receives sheltering and field services through SVACA. The City of Sunnyvale receives shelter service through SVACA, but provides its own animal control field services. Sunnyvale has found and strongly believes that it is cost effective and that a higher service level can be provided, by providing its own field service.

Recent events have called into question the cost benefit of obtaining services through SCAVA. This questionable cost benefit has caused some of the cities in the JPA to begin looking for services outside SCAVA. The City of Cupertino is exploring the possibility of obtaining field services from other sources outside of SVACA. One of the agencies that Cupertino has asked for field services proposal is the City of Sunnyvale.

When considering providing field service for the City of Cupertino, the City of Sunnyvale examined three important points. First, when providing animal control field services for the City of Cupertino, there must not be a negative effect on service levels in Sunnyvale. Second, there must not be a negative financial impact to the City of Sunnyvale. Third, for an agreement of this type to be sustainable, it must be of mutual benefit to both parties. This proposal was prepared with these concepts in mind.

This proposal is being prepared in extraordinary financial times. With an uncertain economic future and projected budget shortfalls, many cities within the State of California are looking at creative ways to help combat these budget shortfalls. This proposal reflects an anticipated mutual benefit for both cities. The service levels reflected in this proposal for Cupertino would be at a reduced level from what is provided in the City of Sunnyvale.

• Pick up confined stray animals; dogs, cats and other small animals.
• Pick up injured stray animals; dogs, cats and other small animals. (Not owned)
• Pick up injured or sick wildlife.
• Pick up dead animals including wildlife, from streets and public property.
• Provide humane animal traps for residents.
• Dogs running loose.
• Assist law enforcement.
• Pick up owner’s animals from owner’s property. (Fee associated)

• Assist City Code Enforcement Officers.
• Nuisance problems. (Except barking dogs)
• Animal sanitation issues.
• Excess animal issues.
• Patrol for observed animal violations.

• Animal bites to humans.
• Animal bites to domestic animals.
• Vicious or dangerous animals.

• Provide a dog-licensing program.

• Operate the City’s rabies program as provided by law and to file all associated paper work.
• Provide an annual "actual" cost rabies vaccination clinic.

The following equipment would be required by the City of Sunnyvale to expand the current program capacity to provide field service to the City of Cupertino. The City of Cupertino will provide the following equipment and shall provide for its replacement when necessary.

• Animal Control Truck

A full size pick up truck (or similar) with a suitable service box for animal control services. Truck to be marked as an animal control truck, equipped with warning lights.

• Radio for Truck (compatible with the Sunnyvale radio system) Installed.
• Computer (CAD) for Truck

Laptop
VRM (modem)
Docking Station
Software
Installation

• Portable Radio

• Animal control tools and equipment as necessary.
• Cell Phone

The term of the agreement shall be for fifteen (15) years commencing on July 1, 2003, and shall terminate on June 30, 2018. There shall be one, five-year options to continue this agreement

Any party may terminate this agreement at any time, with or without cause, by providing one hundred eighty (180) days written notice of intent to terminate. In any event of termination under this paragraph, Sunnyvale shall be paid for all services performed until such termination.

The cost of services to be provided by the City of Sunnyvale is broken into two components, the initial capital start up cost and an ongoing annual fee. If the City of Cupertino provides the necessary capital requirements in the form of actual equipment, there will be no financial capital necessity. If the City of Cupertino chooses to pay for the capital costs, those costs are estimated below.

This entire amount is due upon execution of the long-term contract. The annual fee will be due on July 1^st of each year of the contract. Increases in the annual fee will be based on the actual annual increases in salary for the positions listed below, as determined by the City of Sunnyvale in its annual pay rate evaluations and recommendation to Council.

Beginning in Fiscal Year 2004-2005, and every two years thereafter, the number of animals handled and calls for service will be reviewed to ensure that the level of service provided under the assumptions used in this proposed are still valid. Any recommended addition to staff would be based on this formula and would need the approval of the City of Cupertino in order to continue the field service.

If the City of Cupertino elects not to provide the necessary start up equipment, the following capital costs are one-time costs associated with expanding the operation with the equipment necessary to perform the scope of work itemized above.

There are two different cost structures for the annual fee for service.

The first structure is in the event that the City of Cupertino provides the necessary capital equipment and will provide for its necessary replacement. The second structure is in the event that the City of Cupertino chooses to pay the City of Sunnyvale for its replacement.

The annual fee will be limited to expenses incurred for both field and support personnel necessary to perform the stated duties. Based on the land area of the City of Cupertino and the number of animals serviced in the past year, the following personnel costs were calculated.

Subsequent years will be based on the actual increases in employee salary and benefits, including retirement costs.

The City of Sunnyvale is very strict concerning its equipment replacement policy. Upon purchase of items of this nature, the City immediately begins to put funds aside for their replacement. The costs itemized below reflect the results of our calculations based on an estimated useful life and replacement cost in 2003 dollars.

The City of Sunnyvale will elect to charge a host city fee to help defray the cost of managing and operating the additional animal control services associated with the city of Cupertino.

Host City Fee $ 10,000

The first cost scenario is in the event that the City of Cupertino provides the necessary capital equipment and will provide for its necessary replacement. The only annual fees will be the employee cost and the host city fee.

The second cost scenario is in the event that the City of Cupertino chooses to pay the City of Sunnyvale for replacement of the necessary equipment. The associated annual fees will be the employee cost, the rental replacement rate and the agency fee.

This proposal dated March 18, 2003 expires on April 18, 2003.