Basically: the D-Wolves that Leto uses to hunt are, to Leto, not the point. They aren't some eccentric boon of a mad emperor, but a calculated token in a complicated game. He used the actual wolves (that is, the animal wolves that hunted Siona and others) as one way to inspire the rebellion that eventually led to the Scattering. Moneo believed until this point that they were just guard animals and didn't give them much thought.
In this passage, Leto is questioned by Idaho:
"Wolves in the city, M'Lord?"
Idaho is confused, since he knows that there are no actual wolves in the city. Leto is referring to his guards and (possibly) fish speakers, whom he uses to the same effect.
Remember that the Scattering happened because Leto oppressed humanity so much that they would eventually get to a point where they would never let that happen again, and where they would eventually be strong enough to ensure they could actually do it. He set up many ways in which this oppression happened. These were used the same as the D-wolves - to entice rebellion and to strengthen it. Sort of like a "come and take what you want" taunt that, eventually, your "enemy" will become strong enough to actually do.
So, they are hunting "his wolves" in the city (they are attacking his forces). Moneo is starting to understand that the entire thing was foreseen by Leto and that this is what he wanted to happen to progress the Golden Path.
A few paragraphs down, Leto says
"Moneo, the wolves are gone from my forest. They must be replaced by human wolves. See to it."
Leto knows that his "human wolves" are just further enticement to cause the eventual rebellion, and he is telling Moneo this in the passage.
