CC - 1969 - 12 - Overhead Charges to Contract Cities•
CITY OF ROSEMEAD
RESOLUTION NO. 69-12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD REQUESTING THE STUDY AND OVERHAUL OF
THE CURRENT METHOD OF ALLOCATING GENERAL
COUNTY OVERHEAD CHARGES TO CONTRACT CITIES.
WHEREAS, the City of Rosemead, as a contract city for
which certain municipal services are provided by the County of
Los Angeles, is currently charged an;'arbitrariIy computed per-
centage of the general County overheadFfor municipal services
furnished to the City, which fee allocates items of County over-
head expense to the City without any relation to the amount of
costs incurred by the County in supplying said services and
irrespective of whether particular County agencies in fact are
involved in supplying contract services for which the City is
charged; and,
WHEREAS, the City of Rosemead and the other contract
cities have consistently agreed that such cities should bear the
direct cost to the County of Los Angeles occasioned by the fur-
nishing of municipal services to said cities by the.County; and,
WHEREAS, the City of Rosemead and other contract cities
have further maintained that the actual indirect or overhead
expenses attributable to the County's furnishing municipal serv-
ices to these cities should also be an expense to be borne by
these cities; and,
WHEREAS, the accounting methods used in establishing
the general County overhead, and the allocation of that general
County overhead to contract city services, is arbitrary, incon-
sistent with accepted principles of financial accounting and
results in the residents of the City of Rosemead and other
contract cities bearing a disproportionate share of the general
overhead expenses of the County.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Rosemead as follows:
1. That the Board of Supervisors of the County of
Los Angeles forthwith authorize a complete and thorough study of
the present accounting methods and principles involved in
apportioning the costs of providing contract services to a City.
2. That the Board of Supervisors establish recognized
principles of accounting and a policy which will provide that
County overhead expenses charged to contract cities.shall be
only these indirect costs a County agency or department has as
a direct result of providing municipal contract services, above
that which would be incurred by the agency or department in the
absence of providing municipal contract services.
3. That these accounting procedures and methods be
specifically applied to the forthcoming renewal of the law
enforcement contract,
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Resolution No. 69-12
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4. That copies of this resolution be sent to all
members of the Board os Supervisors of the County of Los Angeles,
the California Contract Cities Association, and to all contract
cities within Los Angeles County.
1969.
PASSED, APPROVED AND ADOPTED this 25th day of February,
MYOR E C ITY OF ROSEMEAD
ATTEST:
CITY CLERK