12-071 - King County - 2012-2017 Animal Control Services

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Exhibit D Reconciliation The purpose of the reconciliation calculation is to adjust payments made each Service Year by Contracting Parties to reflect actual licensing and non -licensing revenue, various credits, and New Regional Revenue, as compared to the estimates of such revenues and credits incorporated in the Estimated Payment calculations, and to adjust for population changes resulting from annexations of areas with a population of over 2,500 (if any) and the addition of Latecomer Cities. To accomplish this, an "Adjusted Net Final Cost" ("ANFC") calculation is made each June for each Contracting Party as described below, and then adjusted for various factors as described in this Exhibit D. As noted in Section 7 of the Agreement, the Parties intend that receipt of Animal Services should not be a profit-making enterprise. When a City receives revenues in excess of its costs under this Agreement (including costs of PAWS shelter service, if applicable), such excess will be reinvested to reduce costs incurred by other Contracting Parties. The cost allocation formulas of this Agreement are intended to achieve this outcome. Terms not otherwise defined here have the meanings set forth in Exhibit C or the body of the Agreement. Calculation of ANFC and Reconciliation Adjustment Amount The following formula will be used to calculate the Reconciliation Adjustment Amount, which shall be payable by August 15. The factors in the formula are defined below. As described in paragraphs A and B, the subscript "0" denotes the initial calculation; subscript "1" denotes the final calculation. ANFCo = (AR + T + V + X + LRC) — (B x LF) A. If ANFCo >_ 0, i.e., revenues and credits are greater than costs (adding the cost factor "W" in the formula for Contracting Cities purchasing shelter services from PAWS or purchasing Enhanced Control Services), then: ANFC1= 0, i.e., it is reset to zero and the difference between ANFCo and ANFC1 is set aside by the County (or, if the revenues are not in the possession of the County, then the gap amount is payable by the City to the County by August 15) and all such excess amounts from all Contracting Parties where ANCFo > 0 are allocated pro -rata to parties for which ANFC < 0, per paragraph B below. Contracting Parties for which ANFCo > 0 do not receive a reconciliation payment. Document Dated 5-29-12 58