HomeMy WebLinkAbout25H - AGMT - HELICOPTER SRVSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MAY 16, 2017
TITLE:
AGREEMENT WITH THE COUNTY OF
ORANGE FOR LAW ENFORCEMENT
HELICOPTER SERVICES (STRATEGIC
PLAN NO. /1, 5)
CITY
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on 1s' Reading
❑ Ordinance on 2ntl Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the City Manager and Clerk of the Council to execute the attached three -year
agreement with the Orange County Sheriffs Department for helicopter services, for the period of
July 1, 2017 through June 30, 2020, subject to non - substantive changes approved by the City
Manager and City Attorney. The first year agreement cost is $421,195.40. The City Council also
authorizes the City Manager to execute the subsequent amendments in year two (July 1, 2018 -
June 30, 2019) and year three (July 1, 2019 -June 30, 2020) for the contract amount of the first
year of this agreement as outlined in Exhibit "A" plus up to ten percent.
DISCUSSION
In October 1994, the City of Santa Ana began participating in the Airborne Law Enforcement
Services (ABLE) program. ABLE was a regional helicopter program, which combined resources
from the City of Costa Mesa, the City of Newport Beach and the City of Santa Ana. On July 1,
2011, ABLE was no longer in existence.
Airborne Law Enforcement Services allow the Police Department to provide a rapid enhanced
response to incidents posing the greatest risk to the public, including robberies, burglaries, assaults,
and fleeing felons. The purpose of this contract with the Orange County Sheriffs Department is to
provide helicopter services for the City of Santa Ana from July 1, 2017 through June 30, 2020. The
County will provide 365 hours of helicopter service under this agreement. Flight hours that are
deemed countywide service will not be counted towards the contracted flight hours per year. The
following type calls are deemed countywide service: Vehicle pursuits, bank robberies involving
tracking systems, stolen vehicles equipped with tracking systems, riots, felonious suspects within
a perimeter, assaults involving a weapon or an officer in need of assistance. The County will
provide the City with a monthly flying hour report detailing assigned call time, patrol time and
countywide service time spent over the City's jurisdiction as provided by Sheriff aircrews.
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Orange County Helicopter Agreement
May 16, 2016
Page 2
The first year agreement cost is $421,195.40. The City Council authorizes the City Manager to
execute subsequent amendments for years two and three as long as the annual increases do not
exceed 10 percent. Any increase beyond ten percent for any amendment of this Agreement will
require City Council approval. The Santa Ana Police Department will also provide one full -time
sworn pilot/observer to the Orange County Sheriffs Department.
STRATEGIC PLAN ALIGNMENT
This item supports the City's efforts to achieve Goal #1 — Community Safety, Objective #5
(Provide high quality Police and Fire /Emergency Medical Services response within the City of -.
Santa Ana).
FISCAL IMPACT
Funds for this agreement are available in the Police Department Field Operations contract
services account (no. 01114420 62300) for the following fiscal years:
J mes Schnabl
Acting Chief of Police
Santa Ana Police Department
FY 2017 -18
FY 2018 -19
FY 2019 -20
$421,195.40
$421,195.40
$421,195.40
APPROVED AS TO FUNDS AND ACCOUNTS
- Cn21mo%, �r.� .�?
Francisco Gutierrez u
Executive Director
Finance & Management Services Agency
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Exhibit 7
AGREEMENT FOR
LAW ENFORCEMENT HELICOPTER SERVICES
BETWEEN THE CITY OF SANTA ANA
AND THE
COUNTY OF ORANGE
This Agreement is made by and between the City of Santa Ana, a charter city
and municipal corporation organized and existing under the Constitution and laws of the
State of California, hereinafter referred to as "CITY", and the COUNTY OF ORANGE, a
political subdivision of the State of California, hereinafter referred to as "COUNTY",
based on the following:
A. COUNTY, through its SHERIFF- CORONER (hereinafter referred to as
"SHERIFF'), employs, maintains, trains and equips personnel capable of responding to
requests for law enforcement helicopter services from ground based law enforcement
personnel.
B. CITY is responsible for providing law enforcement services within its
jurisdiction, which include law enforcement helicopter services.
C. COUNTY represents that it is qualified and willing to operate said services.
TERM
This Agreement shall commence on July 1, 2017 and end on June 30, 2020
unless earlier terminated by either party.
PURPOSE
1.01 The purpose of this Agreement is to provide law enforcement helicopter
services to CITY's land and residents and for CITY to pay for the cost of the services
provided by COUNTY.
1.02 Nothing in this Agreement shall be interpreted to give CITY a right to
services from COUNTY. COUNTY expressly retains all rights and powers to direct,
manage, maintain, train, employ, equip, operate and control all equipment, facilities,
properties and personnel in providing law enforcement helicopter services to CITY
pursuant to this Agreement. CITY acknowledges and agrees that the efficient use of
public safety helicopter services requires a timely and prioritized response of a
helicopter. CITY agrees that COUNTY will have the sole discretion to determine the
priority of calls for service and when an assignment of an air crew to a call will be
terminated.
1.03 Notwithstanding anything in the Agreement to the contrary, the CITY
expressly retains all rights and powers to direct, manage, maintain, train, employ, equip,
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operate and control all equipment, facilities, properties and personnel in providing
ground based public safety services to its land and residents.
COUNTY PROVIDED SERVICES
2.01 COUNTY will furnish the CITY with public safety helicopter services as more
particularly set forth in Exhibit "A," attached hereto and incorporated herein by this
reference. COUNTY and helicopter aircrews retain the sole and exclusive discretion as
to the specific type, nature, timing and duration of the services performed pursuant to
this Agreement.
2.02 In no event shall SHERIFF or the aircrew be responsible for the direction
and control of ground based law enforcement personnel and equipment of CITY during
the course and scope of the services performed pursuant to this Agreement.
CITY DUTIES
3.01 CITY shall pay COUNTY as determined by COUNTY pursuant to Paragraph
4.01 of this Agreement, for services provided by COUNTY under this Agreement. The
services performed by the SHERIFF helicopter shall commence as of the date and time
the helicopter is dispatched to, or arrives over, the airspace of the CITY, whichever
occurs first. These services shall continue until the aircrew notifies the CITY that the
assignment is complete or that the assignment must be terminated due to a higher
priority assignment. Services performed by SHERIFF helicopter for the CITY shall be
defined as:
A. A direct request for air support services by the CITY where a SHERIFF
helicopter arrives over the incident as logged by the aircrew (operationally identified as
Helicopter Assigned) or;
-- B. Any public safety call generated by the CITY and monitored by a SHERIFF
aircrew in which they arrive over the incident as logged by the aircrew (operationally
identified as Call Monitored and Responded) or;
C. Routine patrol over CITY's jurisdictional areas and observe an incident
(operationally identified as Observation Response); or
D. Dispatched to a special assignment (operationally identified as Detailed
Assignment).
The CITY may authorize its ground based public safety supervision to cancel any
response by SHERIFF helicopter.
3.02 CITY agrees to comply with the Federal Aviation Regulations (FAR) Part 91
and SHERIFF's Operations Manual Section V 1.18.0 in making calls for services, which
establishes priority for calls to SHERIFF.
3.03 CITY agrees to install within its communications /dispatch center any radio
equipment necessary to communicate directly with SHERIFF on the designated
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"SHERIFF CALL" frequency (800 MHz Talk Group). All costs associated with said
installation shall be paid by CITY.
ANNUAL FLIGHT HOURS, COST AND PAYMENT
4.01 The COUNTY shall provide Three Hundred and Sixty -Five (365) flight hours
to the CITY per year, with the exception of the contract period July 1, 2019 — June 30,
2020, during which the COUNTY shall provide Three Hundred and Sixty -Six (366) flight
hours to the CITY. Pursuant to Government Code Section 51350, CITY agrees to pay to
COUNTY the full cost of performing the services mutually agreed upon in this
Agreement. CITY shall pay COUNTY the annual operating cost as set forth in Exhibit
"A," for Three Hundred and Sixty -Five (365) flight hours of service provided to CITY
under this Agreement ( "Contract Amount") for the first year of this agreement (July 1,
2017 - June 30, 2018). For each subsequent year of this Agreement, a written
amendment will be executed to amend the Annual Flight Hours, Cost and Payment
section of the Agreement and Exhibit A. Any services in excess of the contracted flight
hours per year, on an annual basis, shall be billed at the hourly rate set forth in Exhibit
"A." The Santa Ana City Council delegates authority to the City Manager to execute the
subsequent amendments in year-two-(July-1 i 2018.-June. 30, 2019) and year three (July
1, 2019 -June 30, 2020) for the contract amount of the first year of this agreement as
outlined in Exhibit "A" plus up to ten percent (10 %). Any increase beyond ten percent
for any amendment of this Agreement will require City Council approval.
4.02 Flight hours that are deemed countywide service will not be counted
towards the contracted flight hours per year. The following type calls are deemed
countywide service: Vehicle pursuits, bank robberies involving tracking systems, stolen
vehicles equipped with tracking systems, riots, felonious suspects within a perimeter,
assaults involving a weapon or an officer in need of assistance. CITY shall not receive
a refund if the total flight hours, on an annual basis, are less than the contracted flight
hours per year. Upon thirty (30) days written notice to CITY, COUNTY may adjust the
hourly rate in Exhibit "A" based on COUNTY's annual operating cost and the average
time per call. COUNTY will provide CITY with a monthly invoice that is one twelfth of the
annual Contract Amount. CITY shall pay COUNTY the Contract Amount set forth in
Exhibit "A" in accordance with COUNTY Board of Supervisors' approved County Billing
Policy, which is attached hereto as Exhibit `B."
4.03 COUNTY will provide the CITY with a monthly flying hour -report detailing
assigned call time, patrol time and countywide service time spent over the CITY's
jurisdiction as provided by SHERIFF aircrews. The CITY shall notify the SHERIFF's
Special Enforcement Bureau Commander within ten (10) days of receipt of the monthly
flying hour report of any disputed call times. The Special Enforcement Bureau
Commander and the CITY Supervisor will review the service provided by SHERIFF on a
monthly basis to ensure that it coincides with the service level as set forth in Exhibit "A."
The Special Enforcement Bureau Commander will be responsible for resolving disputes
and adjusting service levels to coincide with Exhibit "A."
INDEMNIFICATION
5.01 CITY agrees that COUNTY should be fully protected from any loss, injury,
damage, claim, lawsuit, cost or expense arising out of, or in any way related, to the
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performance of services pursuant to this Agreement. Accordingly, the provisions of this
Agreement should be construed and interpreted to provide the fullest possible
protection to COUNTY. CITY acknowledges that COUNTY would not provide services
in the absence of the commitments of CITY as specified in this Agreement.
5.02 To the fullest extent permitted by law, CITY shall defend at its expense
including attorney's fees and with counsel approved in writing by COUNTY, indemnify
and hold harmless COUNTY and its officers, employees, and agents (collectively, the
"Indemnified Parties ") from and against any and all claims (including, without limitation,
claims for bodily injury, death or damage to property), demands, obligations, damages,
actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and
expenses (including, without limitation, attorney's fees, disbursements and court costs)
of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which
may arise from or in any manner relate directly or indirectly to any services provided
under this Agreement including, but not limited to, activities that relate in any way to this
Agreement including the negligent and /or willful acts, errors and /or omissions of CITY,
its elected and appointed officials, officers, agents, employees, subcontractors or
independent contractors. Notwithstanding the foregoing, nothing herein shall be
construed to require CITY to indemnify the Indemnified Parties from any Claim arising
from the sole negligence or willful misconduct of the Indemnified Parties. This indemnity
shall apply to all claims and liability regardless of whether any insurance policies are
applicable.
5.03 COUNTY shall defend at its expense including attorney's fees and with
counsel approved in writing by CITY, indemnify and hold harmless CITY and its officers,
employees, and agents with respect to any claim, loss, liability, damage, lawsuit, cost or
expense that arises out of, or is in any way related, to the sole negligence or willful
misconduct by COUNTY, its elected and appointed officials, officers, agents,
employees, subcontractors or independent contractors.
5.04 If judgment is entered against CITY and COUNTY by a court of competent
jurisdiction because of the concurrent active negligence of either party, CITY and
COUNTY agree that liability will be apportioned as determined by the court. Neither
party shall request a jury apportionment.
MISCELLANEOUS PROVISIONS
6.01 Each party to this Agreement shall immediately notify the other of any
litigation or claim that is asserted by or against either party regarding this Agreement.
6.02 The laws of the State of California shall govern this Agreement and all
matters relating to it and any action brought relating to this Agreement shall be
adjudicated in a court of competent jurisdiction in the County of Orange.
6.03 If any term or portion of this Agreement is held to be invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions
of this agreement shall continue in full force and effect.
6.04 This Agreement may be modified or amended only by a written document
executed by both COUNTY and CITY.
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6.05 The terms of this Agreement shall be construed in accordance with the
meaning of the language used and shall not be construed for or against either party by
reason of the authorship of the Agreement or any other rule of construction which might
otherwise apply.
6.06 This Agreement represents the full and complete understanding of every
kind or nature whatsoever between the parties hereto, and all preliminary negotiations
and agreements of whatsoever kind or nature are merged herein. No verbal agreement
or implied covenant shall be held to vary the provisions herein.
6.07 A waiver by either party of any breach, of any term, covenant or condition
contained herein shall not be deemed to be a waiver of any subsequent breach of the
same or any other term, covenant or condition contained herein, whether of the same or
a different character.
6.08 Except as specifically authorized under this Agreement, the services to be
provided under this Agreement shall not be assigned, transferred, contracted or
subcontracted out without the prior written approval of COUNTY and CITY.
6.09 All notices authorized or required by this Agreement shall be effective when
written and deposited in the United States mail, first class postage prepaid and
addressed as follows:
CITY: CITY OF SANTA ANA — CLERK OF THE COUNCIL
20 CIVIC CENTER PLAZA (M -30)
SANTA ANA, CA 92702
CITY ATTORNEY'S OFFICE
ATTN: LAURA A. ROSSINI, SENIOR ASSISTANT CITY ATTY
20 CIVIC CENTER PLAZA (M -29)
SANTA ANA, CA 92702
With Courtesy Copy:
ATTN: CHIEF OF POLICE — City of Santa Ana
60 CIVIC CENTER PLAZA
SANTA ANA, CA 92702
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COUNTY: ATTN: LAW ENFORCEMENT CONTRACT MANAGER
SHERIFF - CORONER DEPARTMENT
320 N. FLOWER STREET, SUITE 108
SANTA ANA, CA 92703
Termination notices shall be effective when written and deposited in the United States
mail, certified, return receipt requested and addressed as above.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement in
the County of Orange, State of California.
CITY OF SANTA ANA
DATED:
Robert Cortez, Acting City Manager
City of Santa Ana
ATTEST:
Maria D. Huizar
Clerk of the Council
APPROVED AS TO FORM:
So R. Ca alh City Attorney
2�
By: Laura A. Rossini
Senior Assistant City Attorney
FOR APPROVAL:
Carlos Rojas
Chief of Police
COUNTY OF ORANGE
DATED:
BY:
Chairwoman of the Board of Supervisors
Signed and certified that a copy of this
document has been delivered to the Chair
of the Board per G.C. Sec. 25103,
Resolution 79 -1535
Attest:
Robin Stieler
Clerk of the Board of Supervisors
Orange County, California
APPROVED AS TO FORM:
Office of the County Counsel
Orange County, California
Deputy
RECOMMENDED FOR APPROVAL:
Sandra Hutchens
Sheriff - Coroner
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EXHIBIT "A"
(Effective July 1, 2017)
The fees set forth in this exhibit represent the total cost of service provided by the
COUNTY, through its SHERIFF - CORONER (SHERIFF), to CITY for fiscal year 2017 -18.
ANNUAL OPERATING COST
JULY 1, 2017 THROUGH JUNE 30, 2018
$421,195.40
HOURLY RATE FOR HOURS IN EXCESS OF THREE HUNDRED AND SIXTY -FIVE
(365) FLIGHT HOURS FROM JULY 1, 2017 THROUGH JUNE 30, 2018
$1,153.96
The annual operating cost shall be divided into twelve equal monthly payments of
$35,099.62 ($421,195.40 divided by 12 months).
PERIOD COVERED - July 1, 2017 to June 30, 2018. (twelve -month term).
Total Contract Amount For Services
$ 421,195.40
Contracted Hourly Rate for Hours In Excess
of Three Hundred and Sixty-Five 365 Hours Annually
$ 1,153.96
Annual Flight Hours
365
Flight Time Per Da in minutes
00:60
Management of flight time provided to the CITY shall be the responsibility of the
SHERIFF's Special Enforcement Bureau Commander. Flight time over the CITY will be
recorded and monitored daily for the purpose of providing service in accordance with the
above table. The CITY will be provided with a detailed monthly flying hour report.
Flight hours that are deemed countywide service will not be counted towards the Three
Hundred and Sixty-Five (365) contracted flight hours. The following type calls are
deemed countywide service: Vehicle pursuits, bank robberies involving tracking systems,
stolen vehicles equipped with tracking systems, riots, felonious suspects within a
perimeter, assaults involving a weapon or an officer in need of assistance.
Due to the inherent unknown nature in the need for airborne law enforcement service,
SHERIFF will adjust daily service levels to coincide with the above table. In recognition
that it will not always be possible to meet this goal (by either exceeding or falling short),
SHERIFF will compensate for variations to arrive at an appropriate "daily average;' on a
monthly basis.
Exhibit A (Effective 7/1/17) Page 1 of 1
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EXHIBIT B
COUNTY BILLING POLICY
APPROVED BY BOARD MINUTE ORDER DATED OCTOBER 27, 1992
POLICY
All County agencies /departments /districts (County) governed by the Board of Supervisors
shall bill contracting entities for materials and/or services provided under contract in
accordance with the following standardized billing and collection policy. Billing frequency is
dependent on whether the contract is a fixed price or actual cost contract. Payment due
date is designed to be both responsive to the County's cash flow needs and reasonable
enough as to not require special processing by the contracting entity. If payments are not
received by the required due dates, a late payment fee shall be computed and billed to the
contracting entity in accordance with the requirements of this procedure.
Nothing herein,shall affect the liability, including pre - judgment interest, of the contracting
party for services or materials in as much as this is a policy to enact standard billing
practices.
II. DEFINITIONS
A. Contract for the Purposes of this policy - A contract is a formal written agreement, a
purchase order from the contracting entity, or any other acceptable mutual
understanding between the contracting parties.
B. Received by the County - The phrase "received by the County", as used in Section VI of
this policy, refers to the date a payment is received by the County. It is defined as the
date the payment is in the County's possession. It is not the date the payment is posted
or deposited by the County.
III. FIXED PRICE CONTRACTS
A. Fixed Price (One- Time /Non - Recurring Contracts) - Invoices that represent a billing for a
one -time, non - recurring provision of materials and /or services shall be issued no later
than five (5) working days after delivery by the County of the materials and /or services.
Examples of such one -time, non - recurring provision of materials and /or services might
be a city contracting with the Sheriff for security service at a parade or sporting event; or,
a city purchasing a computer listing containing certain city- requested data. Payment due
date shall be invoice date plus 30 days.
B. Fixed Price (Ongoing / Recurrina Contracts) - Invoices that represent a billing for an
ongoing, recurring provision of materials and /or services shall be issued according to the
following frequency:
1. Annual Billings that total $10,000 or less per 12 -month period shall be billed via one
(1) annual invoice. Annual invoices will be issued for each 12 -month period of the
contract, or portions thereof. Invoices shall be issued no later than five working days
after the beginning of each 12 -month period. Payment due date shall be invoice date
plus 30 days.
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2. Quarterly Billings that are greater than $10,000 but not more than $200,000 per 12-
month period, shall be billed in quarterly installments. Quarterly invoices will be
issued representing the contract amount for each 12 -month period of the contract, or
portions thereof, prorated into four (4) installments. Invoices shall be issued no later
than 30 days after the beginning of each quarter. Payment due date shall be 60 days
after the beginning of each calendar quarter.
3. Monthly Billings that are greater than $200,000 per 12 -month period shall be billed in
monthly installments. Monthly invoices will be issued representing the contract
amount for each 12 -month period of the contract, or portions thereof, prorated into 12
installments. Invoices shall be issued on or before the first day of each service
month. Payment due date shall be 30 days after the beginning of each service
month.
An example of a fixed price contract for ongoing, recurring provision of materials and/or
services might be a city contracting with the Sheriff for law enforcement services.
IV. ACTUAL COST CONTRACTS
A. Actual Cost (One- Time /Non - Recurring Contracts) - Invoices that represent a billing for a
one -time, non - recurring provision of materials and /or services shall be issued after
delivery by the County of the materials and/or services and no later than 15 days after
actual cost data is available. Payment due date shall be invoice date plus 30 days.
B. Actual Cost (Ongoing /Recurring Contracts) - Invoices that represent a billing for an
ongoing, recurring provision of materials and/or services shall be issued on a monthly
basis and shall represent the cost of materials and/or services provided to the
contracting entity during the previous calendar month. Such invoices shall be issued no
later than 15 days after the close of the monthly billing period. If the County
agency /department1district does not utilize a monthly billing cycle, the invoice shall be
issued no later than 15 days after actual cost data is available. Payment due date shall
be invoice date plus 30 days.
Examples of actual cost contracts for the ongoing, recurring provision of materials and/or
services might be a city contracting with the County for communications equipment
repair or waste disposal at a County landfill.
V. PAYMENT DUE DATES
Notwithstanding the provisions of Sections II and III above, payment due date shall be at
least invoice date plus 30 days. If the County is late in issuing an invoice, the contracting
entity would always have at least invoice date plus 30 days to pay. If the County is early in
issuing an invoice, the contracting entity would still have a payment due date of either 60
days after the beginning of the quarter (quarterly invoices) or 30 days after the beginning of
the service month (monthly invoices).
(EXAMPLES: An invoice for October service, dated and issued October 8 (late) would have
a payment due date of November 7. An invoice for August service, dated and issued July 20
(early) would have a payment due date of August 30.)
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VI. LATE CHARGES
The late payment of any invoiced amount by a contracting entity will cause the County to
incur costs not contemplated by the County /contracting entity agreement, the exact amount
of such cost will be extremely difficult to ascertain. Such costs include, but are not limited to,
costs such as administrative follow -up and processing of delinquent notices, increased
accounting costs, etc.
Late charges will be assessed in the following situations:
— Over - the - counter payments will be assessed a late charge if any payment is not received
by the County by the payment due date.
— Payments transmitted to the County via the U.S. Mail that have the payer's postage
meter mark will be assessed a late charge if any payment is not received by the County
by the payment due date plus one day.
— Payments transmitted to the County via the U.S. Mail that have a U.S. Post Office
postmark dated after the payment due date will be assessed a late charge.
The late charge assessed in each of these situations shall be three - quarters of one percent
(0.75 %) of the payment due and unpaid plus $100.00 for late payments made within 30 days
of the payment due date. An additional charge of three - quarters of one percent (0.75 %) of
said payment shall be added for each additional 30 -day period that the payment remains
unpaid. Late charges shall be added to the payment and invoiced to the contracting entity in
accordance with this policy.
VII. COLLECTIONS
Any invoice remaining unpaid 90 days after the invoice date shall be referred to the Auditor -
Controller for subsequent collection action, such as deduction from contracting entity
moneys on deposit with the County Treasurer in accordance with Government Code Section
907 and any other applicable provision of law. Non - payment of invoices and applicable late
charges will constitute a breach of contract for which the County retains all legal remedies
including termination of the contract.
VIII. DISCOUNT FOR EARLY PAYMENT
Any payment received by the County from a contracting entity 20 days or more before the
payment due date shall be entitled to a discount of one - quarter of one percent (0.25 %). If
the contracting entity takes a discount, and the payment is received by the County less than
20 days before the payment due date, County staff shall immediately notify the contracting
entity by telephone that the discount should not have been taken and that the balance is due
by the original payment due date.
If the balance is not received by the County in accordance with the dates as specified in
Section VII, applicable late charges shall be calculated on the balance due.
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IX. DEFERRED REVENUE
At fiscal year end, any portion of revenue invoiced (not necessarily received) during the fiscal
year being closed out that represents charges or prepayment for materials and/or services
for the upcoming fiscal year shall be reclassified from a revenue account to a deferred
revenue account (liability). In the new fiscal year the deferred revenue shall be reclassified
to a revenue account. (EXAMPLE: On June 1, 19X1, a city is invoiced $48,000 which
represents charges for the 12 -month period June 1, 19X1 to May 31, 19X2. The amount to
be reclassified to deferred revenue would be $44,000, representing 11 /12ths of the total
amount. In July 19X1, the $44,000 would be reclassified to revenue.) Reclassification
entries shall be made by Auditor - Controller Agency Accounting units, or for those
agencies /departments /districts without such a unit, the agency/department/district shall notify
the Auditor - Controller of the amounts to be reclassified.
X. COST RECOVERY
All County agencies /department/districts shall include all costs of providing contracted
services in contract rates. Including all direct costs, allocated indirect costs such as
departmental and County (CWCAP) overhead, and cost of capital financing.
XI. EXISTING CONTRACTS
Billing terms and provisions contained in existing contracting entity agreements (existing as
of the date this policy is approved by the Board of Supervisors) shall remain in effect for the
life of the contract. However, when these existing contracts are renegotiated, they shall
contain the billing provisions as set forth in this policy.
XII. DEVIATIONS FROM POLICY
Deviations from this policy shall be approved by the Board of Supervisors. Proposed
deviations by agencies /departments /districts shall be submitted to the CEO for concurrence
in advance of filing an Agenda Item Transmittal (AIT) with the Clerk of the Board. The CEO,
or his /her designee, shall advise the agency/department/district of approval or disapproval of
the proposed deviations. If a County agency/department/district submits a contract to the
Board of Supervisors for approval, and the billing provisions in the contract deviate from this
policy, the agency/department/district shall specifically advise the Board of Supervisors in
the AIT of the deviation, the reason for the deviation, and of the CEO's recommendation
relative thereto.
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