TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: LINDA REICH, CITY MANAGER
SUBJECT
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Approval of a Contract Vendor Increase to Authorize the Final Fourth Quarter FY25-26 Payment for the Animal Resource Center of the Inland Empire (ARC).
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RECOMMENDATION
Approve a retroactive contract vendor increase for FY2025-26 to the City of Ontario No. 2025-291 by $54,587.90 for an adjusted contract balance of $2,043,791.90 to satisfy the remaining fiscal year fourth-quarter cost-share financial obligation for the Animal Resource Center of the Inland Empire, and authorize the city manager to execute all necessary documents on behalf of the city.
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FISCAL IMPACT
No additional funds are requested for this action. Staff has identified existing funds within the FY 2025-26 Adopted Budget to fully satisfy the City's Fiscal Year 2025-26 fourth quarter financial obligation for the Animal Resource Center of the Inland Empire.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Financial Stability
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
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Expenditure: 1002020-40010-MS262 |
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BACKGROUND
The City of Chino partners with neighboring municipalities to provide regional animal welfare and sheltering services through the Animal Resource Center of the Inland Empire (ARC). Under the terms of the Joint Powers Authority agreement, the City of Ontario covers the immediate operational and capital costs. Partnering jurisdictions then reimburse the City of Ontario based on a predetermined cost-share formula. The City of Chino is responsible for a fixed twenty-eight percent (28%) share of the total operational and capital expenses.
ISSUES/ANALYSIS
To ensure precise fiscal management and accountability, the City of Chino budgets and pays its regional animal sheltering obligations based on actual expenditures incurred rather than projected or estimated costs. This methodology prevents the over-allocation of municipal resources and ensures public funds are utilized strictly for verified operational expenses.
Because the agreement is structured around actual expenditures, staff deferred the final quarterly funding request until the City of Ontario finalized year-end accounting and transmitted the fourth quarter invoice. The City has now received the invoice detailing the actual operating costs for the final quarter of Fiscal Year 2025-2026.
The total regional expense for the fourth-quarter member share is $1,680,212.04, resulting in the City of Chino’s twenty-eight percent (28%) share of $470,459.37. This final quarterly obligation requires an increase to the existing contract authority to allow payment of the remaining Fiscal Year 2025-26 balance.
Staff recommends that the City Council approve a retroactive increase to the contract authority from the previously authorized amount of $1,989,204.00, approved by the City Council on April 7, 2026, to a total not-to-exceed amount of $2,043,791.90. No additional appropriation is required, as sufficient funds are available within the adopted Fiscal Year 2025-26 budget.