HomeMy WebLinkAboutCC 09-15-2026 Item No. 14 Law Enforcement Services Agreement with the County of Santa Clara _Desk Item_REVCC 09-15-2026
#14
Law Enforcement Services
Agreement with the
County of Santa Clara
Desk Item
FINANCE DEPARTMENT
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3200
CUPERTINO.GOV
CITY COUNCIL DESK ITEM
Meeting: September 15, 2026
Agenda Item # 14
Subject
Law Enforcement Services Agreement with the County of Santa Clara.
Recommended Action
Receive an update regarding the City's law enforcement services agreement with the County of
Santa Clara, discuss the findings of the City's independent financial review, receive a proposed
draft long-term agreement from the County of Santa Clara, and provide direction to staff as
appropriate.
Background:
Following receipt of the County’s proposed contract on New Year’s Eve, City staff made
extensive and sustained efforts to engage the County in good-faith negotiations toward a cost
methodology that reasonably reflects the County’s actual costs while avoiding significant and
immediate impacts to the City’s budget and maintaining the level of law enforcement services
provided to Cupertino residents.
Throughout the negotiations, the City sought a range of reasonable alternatives, including: (1)
phasing in proposed contract increases; (2) identifying opportunities to contain costs without
reducing service levels; (3) considering alternative approaches to providing law enforcement
services that could achieve cost savings; and (4) obtaining specific scenarios identifying
potential reductions in service and the corresponding cost savings. The County did not agree to
these alternatives.
The City subsequently offered to enter into a short-term agreement reflecting a 20 percent
increase in costs. This proposal would have provided for uninterrupted law enforcement
services to Cupertino residents while allowing additional time for the parties to continue
working toward a mutually acceptable long-term agreement. The County did not accept this
proposal.
In June, the County agreed to a three-month extension with the new proposed costs to allow
additional time for negotiations and completion of an independent financial assessment. That
assessment was completed in late August and provided additional information regarding the
County’s proposed cost methodology.
On September 10, 2026, after the Staff Report had been posted, the City received a letter from
the Sheriff (Attachment A) stating that, absent a new agreement, the Sheriff would not provide
law enforcement services in Cupertino beginning October 1, 2026, other than for “emergency
calls for service from Cupertino involving an immediate threat to life or safety, and serious
crimes in progress requiring an immediate law enforcement response.” Separately, the City has
been informed by the County Executive that the County will not consider a further extension of
the existing agreement, even if the City were to agree to pay the County’s full costs during the
extension period.
In light of these developments, the City is providing this update to the Staff Report.
The City remains concerned about the County’s proposed cost methodology and believes that
the methodology should more clearly and reasonably reflect the costs directly associated with
providing law enforcement services to Cupertino. The City has consistently sought a balanced
approach that recognizes the legitimate costs of providing these services while protecting the
City’s financial interests and maintaining appropriate service levels for the community.
At the same time, the City’s foremost responsibility is to protect the safety of Cupertino
residents. The City cannot responsibly accept a significant reduction in law enforcement
services as of October 1, particularly where there is no immediate alternative capable of
providing comparable service levels.
Accordingly, given the circumstances currently facing the City, staff recommends that the City
Council authorize the City Manager to execute the proposed agreement with the County in
order to ensure continuity of law enforcement services in Cupertino.
This recommendation is made solely to protect public safety and avoid a disruption in essential
law enforcement services. It should not be understood as an indication that the City agrees with
the County’s proposed cost methodology. The City has made substantial efforts to reach a
reasonable and sustainable agreement and will continue to advocate for a cost methodology
that appropriately reflects the services provided and the actual costs associated with those
services.
Authorizing the agreement will allow the City to maintain uninterrupted law enforcement
services for Cupertino residents while continuing to work with the County toward a more
transparent, reasonable, and sustainable approach to determining the cost of those services.
Attachments Provided with Original Staff Report:
A. Draft County of Santa Clara Law Enforcement Services Contract
B. County of Santa Clara Law Enforcement Services Three-Month Extension
C.Vasquez Report - Sheriff Contract Cost Allowability and Compliance with Government
Code § 51350
D.Vasquez Presentation – Sheriff Contract Cost Review
Attachments Provided with Desk Item:
E. September 10, 2026 Letter from Sheriff Jonsen
F. Draft Resolution Authorizing the City Manager to Execute a Law Enforcement Services
Agreement with the County of Santa Clara
RESOLUTION NO. 26-XXX
A RESOLUTION OF THE CUPERTINO CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE A LAW ENFORCEMENT SERVICES
AGREEMENT WITH THE COUNTY OF SANTA CLARA AND EXPRESSLY
RESERVING THE CITY'S RIGHTS REGARDING THE COUNTY'S COST
ALLOCATION METHODOLOGY
WHEREAS, the City of Cupertino ("City") has for many years contracted
with the County of Santa Clara ("County"), through the Santa Clara County
Sheriff's Office ("Sheriff"), for law enforcement services within the City; and
WHEREAS, the City's current law enforcement services agreement with the
County is scheduled to expire, and the City and County have been engaged in
negotiations concerning a successor agreement; and
WHEREAS, the City values its longstanding relationship with the Sheriff
and desires to maintain continuity of law enforcement services and avoid any
interruption in public safety services to the City's residents, businesses, and
visitors; and
WHEREAS, the County provided the City with a proposed successor
agreement and cost methodology that would materially increase the City's cost for
law enforcement services; and
WHEREAS, the City has raised substantial concerns regarding the County's
proposed cost allocation methodology, including whether certain costs proposed
to be charged to the City constitute costs that the County is legally permitted to
charge under California Government Code section 51350; and
WHEREAS, Government Code section 51350 provides, among other
things, that a county providing services to a city pursuant to contract shall charge
the city costs incurred in providing the contracted services, but shall not charge
the city, either directly or indirectly, for certain costs attributable to services made
available to all portions of the county or for general overhead costs of county
government; and
WHEREAS, Government Code section 51350 further provides that
"[g]eneral overhead costs" are costs that a county would incur regardless of
whether it provided a service under contract to a city and expressly provides that
any determination of general overhead costs is subject to court review as to the
reasonableness of that determination; and
WHEREAS, in order to assist the City in evaluating the County's proposed
cost methodology, the City, together with other contract cities, commissioned an
independent assessment by Vasquez & Company LLP concerning the County's
cost allocation methodology and compliance with Government Code section
51350; and
WHEREAS, the City's independent assessment identified substantial
concerns regarding the allocation of certain costs to the City and provided
information relevant to the City's continuing discussions with the County
concerning an appropriate and legally compliant cost methodology; and
WHEREAS, the City has communicated its concerns regarding the
County's cost methodology to the County and has continued to seek a mutually
acceptable resolution of the City's legal and financial concerns; and
WHEREAS, notwithstanding those unresolved concerns, the County has
required the City to enter into the successor agreement in order to continue
receiving dedicated law enforcement services without interruption; and
WHEREAS, the City Council determines that continued law enforcement
services are necessary to protect public safety and that execution of the successor
agreement is warranted to avoid an interruption in those services; and
WHEREAS, the City's execution of the successor agreement is not intended
to constitute, and shall not be construed as, an admission, concession, waiver,
release, ratification, or agreement by the City that the County's proposed cost
allocation methodology complies with Government Code section 51350 or any
other applicable law; and
WHEREAS, the City Council further determines that it is in the City's
interest to expressly reserve all rights, claims, defenses, remedies, and causes of
action concerning the County's cost methodology and the amounts charged to the
City under the successor agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Cupertino as follows:
SECTION 1. Authorization of Agreement.
The City Council hereby authorizes the City Manager or designee to negotiate and
execute, on behalf of the City, the Law Enforcement Services Agreement with the
County of Santa Clara, substantially in the form presented to the City Council,
including provisions expressly reserving the City’s rights under Government
Code section 51350 to challenge the Agreement’s cost methodology and seek to
ensure compliance with Government Code section 51350, subject to such final
modifications as may be approved by the City Attorney.
SECTION 2. No Approval or Ratification of Disputed Cost Methodology.
The City's execution of the Law Enforcement Services Agreement is solely for the
purpose of maintaining continuity of law enforcement services and shall not
constitute or be construed as:
A. an acknowledgment or admission that the County's cost allocation
methodology complies with Government Code section 51350;
B. an acknowledgment or admission that any particular cost or category of costs is
properly chargeable to the City;
C. a waiver, release, relinquishment, compromise, settlement, or abandonment of
any claim, defense, objection, or remedy available to the City concerning the
County's cost methodology or charges;
D. a ratification of any prior County methodology, calculation, allocation, invoice,
or charge disputed by the City; or
E. an agreement that the amounts charged or to be charged under the Agreement
constitute the City's final or legally correct obligation to the County.
SECTION 3. Express Reservation of Rights.
The City expressly reserves all rights, claims, defenses, objections, remedies, and
causes of action, whether known or unknown, arising out of or relating to the
County's cost allocation methodology, the allocation or charging of costs to the
City, and the amounts invoiced or paid by the City under the Agreement.
Without limiting the foregoing, the City expressly reserves its rights under
Government Code section 51350 as set forth in section 3(A) of the Agreement,
including the right to challenge the reasonableness and legality of the County's
determination and allocation of costs and to seek appropriate judicial or other
relief.
The City further expressly reserves the right to seek reimbursement, credit,
adjustment, offset, or other appropriate relief with respect to any amounts that the
City determines, or a court or other tribunal determines, were improperly charged
to or paid by the City.
SECTION 4. Payments Under Protest.
To the extent the City pays amounts pursuant to the Agreement that are subject to
the City's unresolved objections concerning the County's cost methodology, such
payments shall not constitute a waiver or release of the City's rights or claims and
may be made under protest and with a continuing reservation of rights.
The City Manager and City Attorney are authorized to take reasonable
administrative and legal measures necessary to preserve the City's rights
concerning such payments, including providing written notice to the County that
particular payments are disputed and are made under protest.
SECTION 5. Continuing Negotiations.
Nothing in this Resolution shall prevent the City Manager, City Attorney, or their
designees from continuing to negotiate with the County concerning the County's
cost allocation methodology, the amount of charges to be paid by the City, or any
other provision of the Agreement.
The City Council encourages continued efforts to reach a mutually acceptable and
legally compliant cost methodology that appropriately allocates to the City only
those costs that may lawfully be charged to the City.
SECTION 6. No Waiver by Continued Performance.
The City's continued receipt of law enforcement services, continued performance
under the Agreement, or payment of amounts invoiced by the County shall not
constitute a waiver of any right or claim expressly reserved by this Resolution.
SECTION 7. Authority to Take Further Action.
The City Manager, City Attorney, and their respective designees are authorized to
take all actions reasonably necessary to implement this Resolution and preserve
the City's rights, including communicating the City's reservations to the County,
reviewing and disputing invoices, pursuing adjustments or credits, and taking
such further legal or administrative action as may be authorized by law and by the
City Council.
SECTION 8. Severability.
If any provision of this Resolution or the application thereof to any person or
circumstance is held invalid, such invalidity shall not affect any other provision or
application of the Resolution that can be given effect without the invalid provision
or application, and to this end the provisions of this Resolution are severable.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 15th day of September, 2026, by the following vote:
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
___________
Kitty Moore, Mayor
City of Cupertino
________________________
Date
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Lauren Sapudar, City Clerk
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Date