TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Justin Clifton, City Manager
PREPARED BY: Isaac Bravo, Management Analyst
SUBJECT:
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Approval of Fifth Amended and Restated Agreement for Animal Sheltering Services
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RECOMMENDATION
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Approve the fifth amended and restated agreement for the Southwest Communities Financing Authority for the City of Murrieta’s portion of $442,782 for Fiscal Year 2025/26 which is 11% of the operating and animal sheltering service costs; and
Authorize the Mayor to execute the agreement.
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PRIOR ACTION/VOTE
On June 5, 2007, the City Council approved Amendment No. 1 to the Joint Powers Authority Agreement (Vote: 5-0).
On February 5, 2008, the City Council adopted Resolution No. 08-1930, approving the Second Amended and Restated Joint Powers Agreement between the cities of Canyon Lake, Lake Elsinore, Murrieta, Temecula, and Riverside County for the purpose of constructing an animal shelter in the southwest portion of Riverside County (Vote: 5-0).
On November 16, 2010, the City Council adopted Resolution No. 10-2624, approving the Third Amended and Restated Joint Powers Agreement between the cities of Canyon Lake, Lake Elsinore, Murrieta, Temecula, and Riverside County to add the City of Wildomar to the JPA (Vote: 5-0).
On May 16, 2017, the City Council adopted Resolution No. 17-3724, approving the First Amendment to the Third Amended and Restated Joint Powers Agreement for the Southwest Communities Financing Authority and authorizing the Mayor to sign (Vote: 5-0).
On October 20, 2020, the City Council adopted Resolution No. 20-4323, approving the Fourth Amended and Restated Joint Powers Agreement between the cities of Canyon Lake, Lake Elsinore, Murrieta, Temecula, Wildomar, and Riverside County to add the City of Menifee to the JPA (Vote: 5-0).
CITY COUNCIL GOAL
Coordinate and deliver responsive, effective community services.
DISCUSSION
The City of Murrieta (City) is a participating member of the Southwest Communities Finance Authority (SCFA), also known as a Joint Powers Authority (JPA), which comprises seven jurisdictions: the cities of Canyon Lake, Lake Elsinore, Menifee, Murrieta, Temecula, Wildomar, and Riverside County. SCFA was established to address regional animal shelter care collaboratively and serves three primary functions.
The SCFA facilitated the construction of the animal shelter located in Wildomar. It also manages the finance and bond repayment obligations associated with the construction of the animal shelter. Lastly, the SCFA provides the contractual oversight for animal sheltering services currently contracted with Animal Friends of the Valleys (AFV).
The City shares both the operational and capital costs associated with the shelter in partnership with other SCFA member agencies. Each jurisdiction’s share is calculated based on its proportion of annual animal intakes in the prior year relative to the total number of animals processed through the shelter. The City has a separate agreement for animal control services through AFV.
The Fifth Amended and Restated Joint Powers Agreement (Attachment 1), presented for Council consideration, provides updated language to further clarify the roles and responsibilities between SCFA and AFV. In particular, it outlines responsibilities related to the maintenance and replacement of equipment used at the regional animal shelter facility.
The most significant change in this amended agreement pertains to the payment structure between SCFA member agencies and AFV. Under the current model, AFV is compensated on a quarterly basis in arrears, meaning payments are issued after the conclusion of each quarter. This payment schedule has led to operational challenges for AFV. Specifically, AFV has reported to the SCFA Board that the delay in payments has at times forced the organization to draw from its financial reserves to cover shelter operations while awaiting reimbursement from SCFA members. AFV has expressed concern that this effectively placed the burden of financing shelter operations on the nonprofit.
To address these concerns, the amended agreement proposes a shift to an advance payment model. Going forward, member agencies will be required to remit payments to AFV at the beginning of each quarter, rather than after the fact. This change is intended to provide AFV with more predictable cash flow, reduce financial strain, and ensure continued operational stability at the shelter.
FISCAL IMPACT
The SCFA Board has already approved the Fiscal Year 2025/26 Cost Distribution Schedule. The City of Murrieta is obligated to pay $442,782 for FY 2025/26 which is 11% of the operating and animal sheltering services costs.
ATTACHMENTS
1. Proposed Fifth Amended and Restated Joint Powers Agreement for the Southwest
Communities Financing Authority