Loading...
HomeMy WebLinkAboutItem 7.1 Jail Booking Fees Notice of Dispute CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 8, 1991 SUBJECT: Consideration of Filing a Notice of Dispute with Alameda County on Jail Booking Fees (Prepared by: Paul S. Rankin, Assistant City Manager) EXHIBITS ATTACHED: 1 . Copy of Letter from County Administrator dated March 8, 1991 transmitting Booking Fees Invoices 2. Letter from County Counsel Waiving Statute of Limitations for a Limited Time Period 3. Draft Notice of Dispute RECOMMENDATION- Consider Issuing a Notice of Dispute Pursuant to . b Government Code Section 907 and if appropriate, direct the City Manager to execute and transmit the Notice. FINANCIAL STATEMENT: In the event that the dispute is resolved in favor of the County, the City will owe interest computed at 10% per year. This cost would be impacted by the amount of time elapsed in resolving the dispute. If litigation occurs, 6 - 9 months may be required to resolve the dispute. The net cost to the City would be reduced by interest earned on the City's cash flow. The following calculation identifies the estimated cost based on certain assumptions: Amount Invoiced (Period: July-Feb/8 months) $25, 135.80 Potential Monthly Interest Owed (Based on Govt. Code: 10%/yr) 209.47 Less: Estimated Monthly Interest Earnings (Assume 8%/year) (-167.57) Estimated Net Monthly Cost to City if the County prevails $41 .90/month DESCRIPTION: On February 25, 1991 , the City Council authorized participation in a Joint Powers Agreement to secure legal services. The purpose of the Agreement was to join with other agencies in Alameda County to challenge the Jail Booking Fees imposed by Alameda County pursuant to SB 2557. The County has granted all public agencies until April 30, 1991 the right to file a suit related to the legality of fees levied for Jail Booking (Exhibit 2). This issue is currently being discussed among a group of City Attorneys representing the Cities throughout Alameda County. It has not been clearly determined whether there is a consensus of the agencies on how any litigation should be pursued. Although the County Counsel has waived any statue of limitations which would bar a suit filed against the County over SB 2557 until April 30, 1991 , administrative units within the County organization have begun billing for fees identified for jail booking. The City of Dublin received its first invoice on March 12, 1991 for Jail Booking Fees which covered a period from July 1 , 1990 through February 28, 1991 . The invoice was transmitted via Certified Mail and contained an explicit reference to Government Code Section 907. This section allows the County to issue a 30 day notice for payment of the invoiced fees. In the event that the City does not issue a Notice of Dispute, the County is authorized to deduct any delinquent amounts from revenues owed to the City of Dublin. For example, the County could deduct the delinquent amount from the City's property tax payment. ---------------------------------------------------------------------- COPIE(S TO: �L 2 ITEM NO. �/� CO / O -00 Y SB 907 identifies the right of the City to dispute the amount which has been invoiced. In accordance with the Law, this must be done by Certified Mail within 30 days of receipt of the original invoice. The Law also identifies that in the event that the dispute is resolved in favor of the County, the City would owe interest on the amount billed which is calculated at 10% per year. Although the City is earning interest on the funds which have not been paid out, it is unlikely that the earnings would be. equal to the 10% penalty. For example, at the end of February the Local Agency Investment Fund (LAIF) was earning 8.002%. Currently, other investment opportunities and certificates of deposit are less than the LAIF rate. If the City does not prevail, the City will incur an actual penalty due to the interest costs paid to the County being higher than the City's current interest earnings. State Law establishes the 10% interest rate required to be paid in the event that the City does not prevail. Based upon the current billing, the potential monthly penalty to the City of Dublin is approximately $209.47, with a net monthly cost to the City of $41 .90. If a Notice of Dispute is to be filed pursuant to Government Code Section 907, it is necessary for that Notice to be filed by April 11 , 1991 . The City Attorneys Group has drafted a proposed Notice which would standardize the response from all agencies contesting the County billing. The draft of this document is attached to the Staff Report (Exhibit 3) . In addition, the City has reviewed the invoice and identified certain technical errors with the billing. Therefore, a statement of the technical inaccuracies has been added to the proposed City of Dublin Dispute Notice. It is appropriate for the City Council to consider whether to direct Staff to file the proposed Notice with Alameda County. The result of this action will be that the City potentially could incur additional costs due to the interest rate paid in the event that the dispute is resolved in favor of the County. Staff would recommend that the City Council consider this item and, if appropriate, authorize the City Manager to execute the Notice. a:s48jail.doc.agenda#4 OF gCQ�O u r C O U N T Y A D M I N I S T R A T O R E C E y E D • �; h1AR 121991 °gtlFOr►N`P March 8, 1991 My,, OF WBUN STEVEN C. SZALAY SUSAN S. MURANISHI ASSISTANT COUNTY ADMINISTRATOR COUNTY ADMINISTRATOR CERTIFIED--RETURN RECEIPT REQUESTED Richard Ambrose, City Manager City of Dublin P.O. Box 2340 Dublin, CA 94566 Dear Rich: Subject: BOOKING FEE INVOICES As you know, SB 2557, signed by the Governor on July 31 , 1990, allows the County to charge a city, special district, school district, community college district, college or university for expenses incurred by the county for booking or other processing of persons arrested on or after July 1 , 1990. Enclosed are invoices for the County' s cost of booking prisoners arrested by your law enforcement agency for the months of July, 1990 through February, 1991 . Bills for subsequent months will be mailed on or about the 10th of each month for the previous month' s activity. Questions regarding specific booking charges should be addressed, in writing, to: Commanding Officer, Alameda County Jail—Santa Rita, 5325 Broder Boulevard, Dublin, CA 94568. However, the full amount of each invoice remains payable within 30 days of receipt by your agency. Should questioned costs be determined not chargeable, adjustments will be made to future invoices. Pursuant to the Government Code Section 907, this letter constitutes 30 days written notice that the County may collect any delinquent amounts due for services rendered by withholding those amounts from any revenues owed to your jurisdiction. Very truly yours, Steven zala County Administrator SCS:JW:jw Attachments cc: Sheriff County Counsel Auditor-Controller 1221 OAK STREET SUITE 555 • OAKLAND,CALIFORNIA 94612 • (415)272-6984 Ey �i t;:[T 5938c FAX(415)272-3784 COUNTY OF ALAMEDA INVOICE FOR JAIL BOOKING FEES MONTH: JULY, 1990 THROUGH FEBRUARY, 1991 AGENCY: DUBLIN POLICE DEPARTMENT TYPE COST PER BOOKING NUMBER BOOKED AMOUNT DUE Partial Booking $ 89.85 32 $ 2,875.20 Full Booking 134.10 166 22,260.60 TOTAL AMOUNT DUE: $ 25,135.80 Please submit warrant payable to: Treasurer of Alameda County c/o Alameda County Sheriff' s Department 5325 Broder Boulevard Dublin, CA 94568 Attention: Accounting Technician Payment of this invoice is due within 30 days of receipt. Questions regarding specific booking charges should be addressed, in writing, to: Commanding Officer Alameda County Jail—Santa Rita 5325 Broder Boulevard Dublin, CA 94568 The full amount of this invoice remains payable within 30 days. Should questioned bookings be determined not chargeable, adjustments will be made to future invoices. 5925c COUNTY OF ALAMEDA INVOICE FOR JAIL BOOK-IN FEES A!)ENCY: DUBLIN POLICE DEPARTMENT PARTIAL AMOUNT FULL AMOUNT TOTAL MONTH BOOK-INS PATE DUE BOOK-INS RATE DUR AMOUNT DUE .11fly, 1990 0 89.85 0.00 25 134.10 3.352.50 3,352.50 Aueuet, 1990 0 89.85 0.00 27 134.10 3,620.70 3.620.70 September, 1990 0 89.85 0.00 37 134.10 4,961.70 4.961.70 October, 1990 32 89.85 2,875.20 0 134.10 0.00 2.875.20 November, 1990 0 89.85 0.00 23 134.10 3,084.30 3.084.3 December, 1990 0 89.85 0.00 14 134.10 1,877.40 1,877.40 January. 1991 0 89.85 0.00 19 134.10 2.547.90 2.547.90 February, 1991 0 89.85 0.00 21 134.10 2,816.10 2,816.10 TOTAL: 39 2.875.20 166 22,260.60 25,135.60 ODF41v- 444:0*0�' _ C O U N T Y C O U tit E L 'FOURTH FLOOR. ADMIN1sTRAT1ON BUILDING, 1221 OAK STREET KEVINH-BOOTY,JFL OAKLAND.CAUFORNIA94612•TELEPHONE(415)272-6700 FAX(415)VZ-S 20 COUNTY OUNSEL Febramy 27, 1991 RECEIVED IVfSiYQBIa AIj111�1P.7rn7P.'_ G Y A'i RNEY Berkeley aty Attorney . 2180 -Miilvia Street Berkeley,CaMmia 94704 Re: Alamrfa Couay Resolution No. R-31-45 Dear Mmuela:-. 'Me.Cotmty of Alameda agrees to waive any statute of limitations which would bar a sdt fixed agate.thc:county. over SB 2557 from-ft dam of this-legs to April 30, 1991_ nb COL does-not waive any stag of Iintirasions which.would be a bar-to a mir filed to the dMe-of this letter. Trn-s.agreement to waive the state of limitations aQplies to all cities and rcdevekgm = agencies withttr tare:County of Alameda- This waiver wilt-allow us tim to disc'ass nary legat concerns the agencies may havc over them impiemea>tauon of SE 2557. . Very truly Yom, KELVIN M BOOTY, JR- County Counsel . By � - 3 _ MAY, Assistant County Counsel F JFM/pb April 9, 1991 DRAFT Mr. Patrick O'Connell, Auditor - Controller County of Alameda Certified Mail 1221 Oak Street, Room 238 P Oakland, CA 94612 RE: Dispute Notice - Invoice to City of Dublin for Jail Booking Fees (July 1990 through February 1991 ) Received: March 12, 1991 Dear Mr. O'Connell: The City of Dublin has received the Invoice referenced above dated March 8, 1991 , ("the Invoice") from the County of Alameda. Please be .advised and put on notice that the City of Dublin is filing this Notice of Dispute pursuant to Government Code Section 907. The effect of this Notice is to prevent Alameda County from offsetting any amount the City of Dublin allegedly owes the County from any funds Alameda County owes the City of Dublin. Without limiting other reasons of invalidation, the Invoice is invalid and of no force and effect because the Invoice purports to apply to matters which took place prior to the effective date of SB 2557, and because the booking fees encompass procedures which are not applicable to arrested persons, as that term is used in the statute. The invoice also contains certain technical errors and charges which are not attributable to the City of Dublin. Further, the County's standards for booking fee charges are vague, unclear, and arbitrary. Although the County may withhold from the City revenues, such as our real property tax revenues, owed to the City by the County when the County deems that an amount due for services rendered is delinquent, the County is not entitled to withhold such revenues where, as here, the City serves a dispute notice on the County. See Government Code Section 907. Please confirm in writing, so that the City may receive such confirmation within 15 days from the date of this letter, that the County will not withhold the disputed Invoice amount. If the City does not receive such confirmation, the City will assume the County will withhold such amount from the City's property tax revenues or from other sources. In that event, the City will pursue all available remedies at law and in equity to enforce and protect its rights. Sincerely, DRAFT Richard C. Ambrose City Manager RCA:slh a:s48dislt.doc.agenda#4 cc: Steven Szalay, County Administrator, Certified Mail # P ® ® Treasurer, c/o Sheriff's Dept. , Certified Mail # P L�•�