TO: LINDA REICH, CITY MANAGER
FROM: JACKIE MELENDEZ, ASSISTANT CITY MANAGER
SUBJECT
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Animal Resource Center of the Inland Empire - FY 2024-25 Fund Allocation.
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RECOMMENDATION
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Approve a retroactive appropriation of $2,502,554 to the General Fund for operational and capital costs associated with the Animal Resource Center of the Inland Empire for FY 2024-25 and authorized the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
This action requires a $2,502,554 appropriation from the FY 24-25 Budget. Sufficient General Fund Balance is available to support this appropriation.
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:
• Superior Customer Service
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
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Revenue: |
Expenditure: 1002020-(40010-43650)-MS262 |
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Transfer In: |
Transfer Out: |
BACKGROUND
On July 16, 2024, the Chino City Council approved an agreement with the City of Ontario to establish the Animal Services Joint Powers Authority, now known as the Animal Resource Center of the Inland Empire (ARC).
Since that time, the ARC has expanded its membership to include the City of Montclair and portions of the unincorporated County of San Bernardino. This expansion has resulted in the following percentages to determine financial responsibilities:
• Ontario - 58%
• Chino - 28%
• Montclair - 10%
• County of San Bernardino - 4%
ISSUES/ANALYSIS
On March 26, 2025, the ARC Board approved a Mid-Year FY 2024-25 budget adjustment that increased the Capital and Operating Budget to $8,937,690, reflecting actual startup expenditures and updated cost projections. This was an increase of $3,725,324 from the original budget approved in October 2024. Based on Chino's 28% allocation, the City’s total FY 2024-25 financial obligation is $2,502,554, the amount currently proposed for appropriation. (See chart below for cost allocation)
The City of Ontario has been operating as the financing arm of the ARC to ensure the timely delivery of the new Animal Resource Center, which is scheduled to open on July 1, 2025. To date, Ontario has provided the upfront costs for the facility, tenant improvements, staffing and equipment purchases. The first invoice, received on June 6, totaled $887,123, with the remaining $1,615,431 to be invoiced to Chino, within the next few weeks.
Therefore, staff recommends that City Council approve a retroactive appropriation of $2,502,554 to the General Fund for operational and capital costs associated with the Animal Resource Center of the Inland Empire for FY 2024-25.