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10-173 RESOLUTION NO. 10-173 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE REQUESTING THE COUNTY OF RIVERSIDE TO PROVIDE CONTINUATION OF LAW ENFORCEMENT SERVICES WITHOUT CHARGE UP TO THE DOLLAR VALUE OF REDUCED COSTS TO THE COUNTY OF RIVERSIDE RESULTING FROM THE INCORPORATION OF THE CITY OF MENIFEE PURSUANT TO THE PROVISIONS OF GOVERNMENT CODE SECTIONS 56815 AND 57384. WHEREAS, the County of Riverside ("County") after reviewing the Comprehensive Fiscal Analysis prepared for the incorporation of the City of Menifee ("City"), that if the incorporation effort was successful, it would result in a net decrease of costs for provision of public services to the incorporating area; and WHEREAS, in July of 2007, in accordance with the provisions of Government Code Section 56815 (c)(2), the County adopted Policy A-46 and determined and set the annual amount payable to the City necessary to off-set the decrease in costs for public services that would result from the incorporation of the City for the first 10 years of incorporation (the "Augmentation Payment"); and WHEREAS, a legal challenge was brought against Policy A-46 and the Augmentation Payment entitled Ste. Marie v. County of Riverside (Superior Court Case No. RIC484325); and WHEREAS, the trial court denied a motion for summary judgment and determined that Policy A-46 and the Augmentation Payment did not constitute a gift of public funds and were authorized under California law; WHEREAS, the plaintiff appealed the trial court decision; and WHEREAS, during the pendency of the appeal, the incorporation of Menifee was approved by the voters in June, 2008; and WHEREAS, the terms and conditions of approval for the City of Menifee imposed by the Local Area Formation Commission included a provision to assure revenue neutrality as required by Government Code Section 56815 that required the County to augment the City of Menifee's general fund by the Augmentation Payment that had been authorized by the County as set forth on Attachment 1; and WHEREAS, the City of Menifee was incorporated under the general laws of the State of California effective October 1, 2008; and WHEREAS, in June of 2010, the Fourth District Court of Appeal in the Ste. Marie action reversed the trial court's determination and held that the cash transfer of funds to the City from the County though not a gift of public funds, was nevertheless invalid because of the way it was structured and a remittitur was issued returning the case to the trial court for resolution consistent with that ruling; and WHEREAS, the Court of Appeal held that while cash may not be transferred to the City by the County in the form of an augmentation payment, the County may agree to provide services free of charge to the City on such terms and conditions as the parties may approve in accord with the provisions of Government Code Section 57384(c) which reads as follows: "At the request of the city council, the board of supervisors, by resolution, may determine to furnish, without charge, to the area incorporated all or a portion of services furnished to the area prior to the Resolution 10-173 Requesting County Continuation of Services at no cost incorporation for an additional period of time after the end of the fiscal year during which the incorporation became effective. The additional period of time after the end of the fiscal year during which the incorporation became effective for which the board of supervisors determines to provide services, without charge, and the specific services to be provided shall be specifically stated in the resolution adopted by the board of supervisors." _ WHEREAS, the City by this Resolution intends to request that the County provide law enforcement services free of charge up to the amount of the Augmentation Payment value in consideration of the reduction in costs to the County resulting from the incorporation of the City and in accord with the provisions of Government Code Sections 56815 and 57384(c). NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. In order to assure revenue neutrality in the incorporation of the City of Menifee as mandated by Government Code Section 56815, under the provisions of Government Code Section 57384(c) and in accordance with the judicial ruling in the case of Ste. Marie v. Board of Directors for the County of Riverside (Superior Court Case No. RIC484325), the City of Menifee hereby requests that the County continue to provide law enforcement services through the County Sheriffs Department at no cost to the City up to the maximum values shown on Attachment 1 through the end of fiscal year 2017-2018. Section 2. Any cost for law enforcement services above the amount shown on Attachment 1 for any fiscal year shall be paid by the City to the County. PASSED, APPROVED AND ADOPTED on November 3, 2010. Wallace . Edgerton, Mayor zt�; ATTEST: APPROVED AS TO FORM: Kathy Bennett, City Clerk Karen Feld, City Attorney 2