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ORIGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Fred Wilson,
City Administrator
Subject: Resolution authorizing
execution of Settlement Agreement
and Full Release of All Claims
between the City of San Bernardino
and the County of San Bernardino
relating to disputed Criminal Justice
Administrative Fees.
MICC Meeting Date: March 21, 2005
Dept: City Administrator's Office
Date: March 7, 2005
Synopsis of Previous Council Action:
September 1998 - Council authorized lump sum payout of $5,203,262 to the County
of San Bernardino in payment of accrued booking fees.
Recommended Motion:
Adopt Resolution.
Contact person: .Ifln Wflg~!l
Phone: I\12?
Supporting data attached:
Yes
Ward:
FUNDING REQUIREMENTS: Amount: $173,396
Source: Acct. No: 772-211-2347
(At"d nl'!~t"rirtinn) Rnnkino I=",~ Trll~t 1=1 Inn
Finance:
Council Notes:
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Agenda Item No.
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino authorizing
execution of Settlement Agreement and Full Release of All Claims between the City of San
Bernardino and the County of San Bernardino relating to disputed criminal justice administrative
fees.
Background:
The State legislature authorized counties to charge cities booking fees with the passage of Senate
Bill 2557 in 1991. The City of San Bernardino has been charged booking fees by the County of
San Bernardino since 1991.
For several years, the City contested booking fee charges imposed on the City by the County of
San Bernardino to lodge prisoners in County jail facilities. Letters contesting the fees were sent
to the County. The City placed budgeted monies for the booking fees in a Reserve Account
pending resolution. On September 21, 1998, the City of San Bernardino remitted $5,203,262 to
the County as a lump sum payout as authorized by the City Council. This payment consisted of
$5,044,979 for accrued billings through March 31, 1998 and $158,283 for the months of April
through June 1998. Since that time, the Police Department has been making monthly payment
for all new booking fee charges plus accrued interest. Disputed booking fees were deducted and
reported back to the County.
Staff from the City Administrator's Office, the City Attorney's Office, and the Police
Department met with San Bernardino County Sheriff's Department and County Counsel staff on
February 19, 2003, to begin the process of negotiating a settlement of the outstanding balance
and to work toward agreement on procedures to resolve the issue of disputed booking fees. A
working group met to develop recommendations. A draft protocol was prepared by City of San
Bernardino Police Department staff. After minor revisions requested by the County, the fmal
version of the Booking Fees Protocol was accepted by the County in June 2003.
Subsequently, the County conducted a sampling of the disputed invoices (from June 2001
through April 2003) using the new Protocol. As a result, it was determined that 54.95% of all
the fees disputed by the City had been billed to the City in error. Therefore, only 45.05% of the
outstanding amount is owed to the County.
The City and the County have reached agreement concerning disputed booking fees for the
period ending January 2004. The unpaid charges total $397,026 including interest. This amount
should be reduced by $218,166 (54.95%), leaving a balance due of $178,860 (45.05%).
Additionally, it was discovered that for bookings for the period from February 1, 2004 through
December 31, 2004, the County had invoiced the City interest amounts that were computed using
incorrect interest rates and that were based on the unpaid charges prior to any adjustment
pursuant to this settlement agreement. Therefore, the amount owed to the County has been
further reduced by an amount of $5,464, leaving a balance owed of $173,396 as full payment for
all booking fees and interest owed to the County.
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The County Board of Supervisors authorized execution of this Settlement Agreement at their
meeting on March 1,2005.
Financial Impact:
The ongoing cost of booking fees have been budgeted in Account No. 772-211-2347. Payment
of $173,396 represents payment in full for all disputed booking fees and interest owed to the
County through January 31, 2004.
Recommendation:
Adopt Resolution.
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COpy
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING EXECUTION OF SETTLEMENT
AGREEMENT AND FULL RELEASE OF ALL CLAIMS BETWEEN THE CITY OF
SAN BERNARDINO AND THE COUNTY OF SAN BERNARDINO RELATING TO
DISPUTED CRIMINAL JUSTICE ADMINISTRATIVE FEES.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. That the Mayor of the City of San Bernardino is hereby authorized to
execute a Settlement Agreement and Full Release of All Claims with the County of San
Bernardino relating to disputed Criminal Justice Administrative Fees.
SECTION 2. The authorization granted hereunder shall expire and be void and of no
further effect if the agreement is not executed by both parties and returned to the office of City
Clerk within one hundred twenty (120) days following effective date of the resolution.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING EXECUTION OF SETTLEMENT
AGREEMENT AND FULL RELEASE OF ALL CLAIMS BETWEEN THE CITY OF
SAN BERNARDINO AND THE COUNTY OF SAN BERNARDINO RELATING TO
DISPUTED CRIMINAL JUSTICE ADMINISTRATIVE FEES.
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
6 and Common Council of the City of San Bernardino at a
meeting thereof, held
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24 Approved as to
Form and legal content:
, 2005, by the following vote, to wit:
on the
day of
Council Members:
NAYS
ABSTAIN
ABSENT
AYES
ESTRADA
LONGVILLE
MCGINNIS
DERRY
KELLEY
JOHNSON
MCCAMMACK
Rachel G. Clark, City Clerk
day of
The foregoing resolution is hereby approved this
2005.
Judith Valles, Mayor
City of San Bernardino
JAMES F. PENMAN,
City Attorney
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SETTLEMENT AGREEMENT
AND
FULL RELEASE OF ALL CLAIMS
This Settlement Agreement and Full Release of Claims (hereinafter referred to as
"Agreement") is entered into between the COUNTY OF SAN BERNARDINO, for itself. its
employees, servants, representatives, officers, officials, agents and departments (hereinafter referred
to as "COUNTY") and the CITY OF SAN BERNARDINO. COUNTY and CITY are collectively
9 referred to herein as the "Parties".
lOA dispute has arisen between COUNTY and CITY relating to COUNTY's claims concerning
11 the sums of money owed by CITY to COUNTY for booking and other processing fees and interest
12 owed by CITY pursuant to Government Code ~29550. CITY and COUNTY have reached
13 agreement over disputed booking fees for the period ending January 31, 2004. The unpaid charges
14 total Three Hundred Ninety Seven Thousand Twenty Six Dollars ($397,026.00) including interest.
15 CITY and COUr-..TTY sampled the billings between June 2001 and April 2003 and agreed the billings
16 should be reduced by Two Hundred Eighteen Thousand One Hundred Sixty Six Dollars
17 ($218,166.00), or fifty four point ninety five percent (54.95%), leaving a balance due of One
18 Hundred Seventy Eight Thousand Eight Hundred Sixty Dollars ($178,860.00).
19 In order to settle a dispute, and in exchange for the consideration described herein, COUNTY
20 and CITY have agreed to settle their differences upon the following terms and conditions:
21 1. COUNTY, in consideration of the performance of the Agreement by CITY, agrees
22 to adjust the amount of Three Hundred Ninety Seven Thousand Six Hundred Twenty Six Dollars
23 ($397,626.00) claimed to be owed to it by CITY for booking and other processing fees and interest
24 for the period through and including January 31, 2004, by a reduction of Two Hundred Eighteen
25 Thousand One Hundred Sixty Six Dollars ($218,166.00), and shall execute this Agreement.
26 2. Further, for the bookings for the period from February 1,2004 through December 31,
27 2004, COUNTY has invoiced the CITY interest amounts that were computed using incorrect interest
28 rates and that were based on the unpaid charges prior to any adjustment pursuant to this settlement
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1 agreement. Therefore, COlJNTY agrees to adjust the amount owed to it by CITY by a reduction of
'l Five Thousand Four Hundred Sixty Four Dollars ( $5,464.00).
3 3. CITY, in consideration of COUNTY's adjustment ofthe amount of booking and other
4 processing fees and interest claimed by it to be owed to COUNTY for the period through and
5 including January 31, 2004, and the adjustment from Section 2 above, agrees to immediately pay to
6 COUNTY the adjusted sum of One Hundred Seventy Three Thousand Three Hundred Ninety Six
7 Dollars ($173,396.00) as full payment for all booking fees and interest owed COUNTY.
8 4. Both COUNTY and CITY hereby fully and permanently release and forever discharge
9 each other from any and all claims, demands, causes of action, rights, damages, costs, and liabilities
10 of any nature whatsoever, whether now known or unknown, latent or patent, arising now or in the
11 future, suspected or claimed, whether anticipatory or real, which either public entity ever had, now
12 has, or claims to have had against the other arising out of or related in any way to the subject matter
13 of the dispute in issue, namely booking and other processing fees and interest due and payable to
14 COUNTY by CITY for the period ending January 31,2004.
15 5. The Parties understand that any liability for any acts or omissions of either of the
16 Parties to this Agreement with respect to the existing controversy is disputed and that this Agreement
17 relates to a compromise and settlement of the various claims between the parties. This Agreement
18 shall not be construed as an admission of liability by either party, nor shall it be admissible at the
19 instance of either party to the Agreement or any third parties to show the liability of or any admission
20 by either party to this Agreement. The Parties agree that each will bear its own attorney's fees and
21 costs.
22 6. The Parties agree that this Agreement shall be deemed breached and a cause of action
23 accrued thereon immediately upon the commencement by either party of any action or proceeding
24 contrary to the terms of this Agreement.
25 7. The Parties fully understand and declare that, if the facts under which this Agreement
26 is executed are found hereafter to be different from the facts now believed by them to be true, they
27 assume the risk of such possible differences in facts and agree that this Agreement shall be, and will
28 remain, effective, notwithstanding such differences in fact.
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8. Both COUNTY and CITY fully understand and expressly waive their individual
rights or benefits under section 1542 of the California Civil Code, which provides:
A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing the
release, which if known by him must have materially affected his
settlement with the debtor.
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9. The Parties further agree that this Agreement shall be binding upon the Parties, their
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employees, agents, heirs, representative, successors, assigns, officers, officials, agents, and
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departments. Furthermore, the benefits contained in this Agreement shall inure to the benefit of the
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Parties hereto, their employees, agents, heirs, representatives, successors, assigns, officers, agents,
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and departments.
10. The Parties hereto certify they have not received any representations, promises, or
inducements from any of the Parties hereto or from their representati ves other than those expressed
in this Agreement. The Parties further certify that they are entering into their Agreement in reliance
upon their knowledge and understanding of the facts, the legal implications thereof, and the liability
therefore as per the advice and legal counsel of their attorneys. The Parties understand and agree that
this Agreement is intended to be and is the complete and entire agreement of the Parties with respect
to all matters contained herein, and the Parties hereby affirm their understanding of the terms of this
Agreement. The Parties agree that this Agreement is a binding contract and not merely a recital. The
Parties further understand and agree that this Agreement may not be altered, amended, modified, or
otherwise changed in any respect or particular whatsoever, except in writing duly executed by both
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Parties or their authorized representatives.
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11. COUNTY has counseled with and has been advised by Dennis Tilton, Deputy
County Counsel, who is an admitted member of the California State Bar, with regard to this
Agreement and the existing dispute, and executes this Agreement, representing to CITY that there
has been an opportunity for full discussion and advice of counsel and that the legal effects of this
Agreement have been explained to COUNTY by its counsel. CITY has counseled with and has been
advised by Robert L. Simmons, Senior Assistant City Attorney, who is an admitted member of the
California State Bar, with regard to this Agreement and the existing dispute, and executes this
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0 1 Agreement, representing to COUNTY that there has been an opportunity for full discussion and
2 advice of counsel and that the legal effects of this Agreement have been explained to CITY by its
3 counsel.
4 IN WITNESS WHEREOF, the parties sign this agreement on the respective dates
5 indicated below.
6 Approved as to fonn:
7 Dated: ~ I ,2005 RONAlD D. REITZ
8 COfi::ZI~~
9 By: DENNIS TILTON
Deputy County Counsel
10 Attorneys for COUNTY OF SAN BERNARDINO
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Approved as to fonn:
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Dated: m......... "'-- I 0 ,2005 JAMES F. PENMAN
13 CIT~~~~ .
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By: ROBERT L. SIMMONS
15 Senior Assistant City Attorney
Attorneys for CITY OF SAN BERNARDINO
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18 Dated: "4arch 1 , 2005
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20 S
Chainnan, Board of Supervisors
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Dated: ,2005 CITY OF SAN BERNARDINO
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By: JUDITH V AllES
25 Mayor
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THIS IS A FULL RELEASE OF ALL CLAIMS
27 WE ARE SIGNING PERTAINING TO THE
DISPUTE DESCRIBED HEREIN.
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** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): ,,71, O~ Item # ~ Resolution #
Vote: Ayes r1 Nays Abstain
Change to motion to a~ocuments 0 Companion Resolutions
Jvrh,~b
Absent
NullNoid After: I}O days /
Resolution # On Attachments: 0 Note on Resolution of attachment stored separately: 0
PUBLISH 0
POST 0
RECORD W/COUNTY 0
By:
Date Sent to Mayor: ?' Y7 ' 0..( __
Date of Mayor's Signature: ?' /-:;' 0\ .-
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Date of Clerk/CDC Signature: ?7. J"l-j I' 0)
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Reso. Log Updated: r:J
Seal Impressed:
Date Memo/Letter Sent for Signature:
I sl Reminder Letter Sent:
Date Returned:
2nd Reminder Letter Sent:
Not Returned: 0
Request for Council Action & Staff Report Attached: Yes No By_
Updated Prior Resolutions (Other Than Below): Yes No By_
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634): Yes No By_
Updated CDC Personnel Folders (5557): Yes No By_
Updated Traffic Folders (3985, 8234, 655, 92-389): Yes No By_
Copies Distributed to:
Animal Control
City Administrator
City Attorney
Code Compliance
Develop~ervices
Others: v
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Finance
Fire Department
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Parks & Recreation
Police Department
Public Services
Ready to File: _
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Notes:
Date: 3.)
Revised 12/18/03
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March 29, 2005
Sue Carey
San Bernardino County Counsel
County Government Center
385 N. Arrowhead Avenue
San Bernardino, CA 92415
Dear Ms. Carey:
Enclosed please fmd one fully executed certified copy of Resolution No. 2005-66, authorizing
execution of Settlement Agreement and Full Release of All Claims Between the City of San
Bernardino and the County of San Bernardino, relating to Disputed Criminal Justice
Administrative Fees.
If you have any questions, please do not hesitate to call me at (909)384-5002.
Sincerely,
Eileen Gomez
Senior Secretary
Enclosure