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STATE OF GEORGIA ))

COUNTY OF CHATHAM )

INTERGOVERNMENTAL AGREEMENT

THIS AGREEMENT, is made and entered into this 16th day of

October, 2003, by and between CHATHAM COUNTY, GEORGIA, a political

subdivision of the State of Georgia (hereinafter referred to as

"County") and the MAYOR AND ALDERMEN OF THE CITY OF SAVANNAH, a

municipal corporation chartered under the laws of the State of

Georgia (hereinafter referred to as "City")

W I T N E S S E T H :

WHEREAS, the Constitution of the State of Georgia of 1983 in

Article 9, Section 3, paragraph 1, provides that municipalities,

counties, and political subdivisions of this state may enter into

agreements with one another for the provision of services by

intergovernmental agreements for a period not to exceed fifty (50)

years; and

WHEREAS, the Georgia Constitution Article 9, § 2, ¶ 3 (a)(1)

provides that any county, municipality, or any combination thereof

may provide police services; and

WHEREAS, the County and City are mutually concerned about

reducing crime, improving police responsiveness and visibility,

facilitating more effective criminal investigations, improving drug

enforcement and improving the overall criminal justice system

within Chatham County and Savannah in the most cost effective

manner; and

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WHEREAS, the County and City desire to enter into an

intergovernmental agreement for the purpose of providing joint

police services in the unincorporated area of the County and in the

City, as well as county-wide for Animal Control, Marine Patrol, and

Chatham-Savannah Counter Narcotics Team, through a police

department to be known as "Savannah-Chatham Metropolitan Police

Department" and referred to as "MPD"; and

WHEREAS, the County and City agree that the MPD jurisdiction

is defined as the geographic area of the City, the unincorporated

County, as it exists on the date of execution of this Agreement and

as it may be amended, as well as county-wide jurisdiction in the

fields of Animal Control, Marine Patrol, and Chatham-Savannah

Counter Narcotics Team ("CNT"). This area of jurisdiction will be

hereinafter referred to as the expanded MPD jurisdiction.

WHEREAS, the County and City intend that there will be no

deterioration of police services to the expanded MPD jurisdiction

and that the provision of joint services under this Agreement will

significantly enhance the quality of police services provided in

the expanded MPD jurisdiction; and

WHEREAS, the County and City intend that there will be no net

loss in pay or benefits afforded to employees of the County Police

Department and City Police Department and that all employees of the

MPD will have equal opportunities for advancement; and

WHEREAS, the County and City intend that the County and City

shall each be responsible only for the proportionate share of the

costs of the MPD for services performed in the County’s

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jurisdiction and City’s jurisdiction, respectively; and

WHEREAS, the Board of Commissioners of Chatham County reviewed

this Agreement and authorized the Chairman to sign this document at

the September 26, 2003 meeting of the Board of Commissioners; and

WHEREAS, the Mayor and Aldermen of the City of Savannah

reviewed this Agreement and authorized the City Manager to sign

this document at the October 16, 2003 meeting of the Mayor and

Aldermen.

NOW, THEREFORE, in consideration of the mutual covenants and

agreements herein made, the County and City do hereby mutually

agree as follows:

I. Jurisdictional Authority

A. Legal Identity and Services. The MPD will not be a

separate legal entity, but will be an instrument of the City

government. The MPD will provide the full range of police services

in the unincorporated area of the County and in the jurisdictional

area of the City. Additionally, the MPD will provide county-wide

police services in the fields of Animal Control, Marine Patrol, and

Chatham-Savannah Counter Narcotics Team (CNT). The MPD will also

provide the same mutual aid police services to other municipalities

in the County which were provided by the County as of the date of

this Agreement.

B. Agreements in Existence. The MPD will continue to

provide services pursuant to all mutual aid agreements and formal

police service agreements between the County, City and other

governmental entities in existence at the time of execution of this

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Agreement. The MPD will continue to provide services pursuant to

all grant project agreements involving the County Police Department

and Savannah Police Department in existence at the time of

execution of this Agreement.

C. County-Wide Jurisdiction of Officers of MPD and

Enforcement of City Ordinances. All Savannah Police Officers and

new recruits of MPD will be sworn in by the County as County Police

Officers and then assigned to MPD. These officers will have the

same county-wide powers and authority as held and retained by

officers of the Chatham County Police Department on the date of

execution of this Agreement. All County Police Officers and new

recruits of MPD will be sworn in by the City as City Police

Officers and then assigned to MPD. MPD officers will have

authority to enforce County and City ordinances.

II. Organizational Structure

A. Governance, Policy Setting and Accountability. With

respect to intergovernmental issues and affairs between Chatham

County and the City of Savannah regarding the MPD, policy direction

of the Chatham County Board of Commissioners ("Commission") and the

City Council ("Council") will be given to the MPD by a Policy

Committee which will consist of the Mayor of the City, the

Chairman of the Commission, the City Manager and the County

Manager. The MPD governance and administrative policies are

intended to insure openness, citizen responsiveness, and customer

service with professional management.

Policy direction from the County Commission shall be provided

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through the County Manager to the Chief of the MPD, with

consultation with the City Manager. Policy direction from the City

Council shall be provided through the City Manager with

consultation with the County Manager.

Service requests from elected officials shall be communicated

to the County and City Manager for prompt action and response by

the Chief and the MPD considering available department resources.

The operations and administration of the MPD shall be fully in

conformance and compliance with the charters and ordinances of

Chatham County and the City of Savannah. Nothing in this Agreement

shall supercede such charters and ordinances.

B. Commanding Officer. The Commanding Officer of the MPD

will be at the level of County or City Police Chief and will be

known as the Chief of the MPD ("Chief"). On the date specified by

the Implementation Schedule (see Section X), the City of Savannah

Police Chief shall become the initial Chief of the MPD.

1. Selection, Salary and Employment Status of Chief. The

County Manager and the City Manager will jointly consult and confer

in the selection or removal process of the Chief of the MPD. A

selection advisory panel appointed by the City and County Managers

with membership which is in conformance with the requirements of

the City and County Charters, will provide advice on the selection

of new Chiefs for the MPD after the incumbency of the initial

Chief. The salary of the Chief will be negotiated by the City

Manager and County Manager and funded as provided in this

Agreement. The Chief will occupy a City position and will function

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as a City Bureau Chief in accordance with the Charter, policies,

rules and regulations of the City. The Chief will have an annual

performance evaluation by the City Manager and County Manager and

an approved work plan with performance criteria.

2. Operational Accountability of MPD Chief. The City

Manager and County Manager will establish administrative procedures

that will allow both managers to have direct access to the Chief of

Police, and to delegate police service tasks to the Chief of the

MPD. The Chief will attend Department Head and other meetings

scheduled by the County Manager and the City Manager and may send

a representative as necessary. The Chief and staff will assist in

the preparation of the annual MPD budget as provided in this

Agreement.

C. Patrol Bureau. The patrol services of the MPD will be

provided through a precinct system. The overall level, quality and

range of police services provided by the MPD will be at least equal

to the services provided by the City Police Department and County

Police Department as of the effective date of this Agreement.

1. Unincorporated Area of County. The MPD will add two new

precincts to the existing four precincts operated by the City

Police existing at the time of execution of this agreement. The

two new precincts will generally serve the unincorporated territory

of the County to the west and east of the City respectively.

Headquarters for the new precinct serving the unincorporated areas

west of the City may be located in the Police Headquarters of the

Chatham County Police Department existing as of the effective date

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this Agreement. Headquarters for the new precinct serving the

unincorporated areas east of the City will be located in the island

area east of the City.

The County Special Services District ("SSD") Fund, or County

share of eligible SPLOST funds, shall fund all expenses related to

the acquisition (or rental) and furnishing of offices for the two

new precincts established to serve primarily unincorporated areas.

2. Determination of Boundaries and Staffing. The Chief will

determine the boundaries and staffing of each precinct based on

factors including the geographical size and population, historical

calls for police service, crime rates within precinct boundaries

and equity in the distribution of police resources and services.

Each precinct will be staffed with the goal of providing more

efficient and effective police services to citizens in the

unincorporated area of the County and jurisdictional area of the

City than were provided prior to the effective date of this

Agreement.

The total number of officers assigned to beats located within

the unincorporated area of the County shall be based on the

resources appropriated for the MPD by the County Commission for the

unincorporated County area patrol function. The total number of

officers assigned to beats located within the incorporated area of

the City shall be based on the resources appropriated for the MPD

by the City Council for the incorporated area patrol function. For

purposes of this Agreement a "beat" is defined to be a specific

geographic area for which specific patrol officers are assigned

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patrol responsibility.

The Chief shall have authority to adjust the assignment of MPD

personnel and resources on a tactical basis to respond to short-

term law enforcement matters and concerns.

D. Criminal Investigation Bureau. The criminal

investigation function of the MPD will be centralized and

configured in a specialized manner under the general functions of

Violent Crimes and Property Crimes. The SWAT Team, Bomb Squad,

Dive Team and Hostage Negotiation Team will be overseen by the

Criminal Investigations Bureau or a newly created Special

Operations Bureau.

E. Chatham-Savannah Counter Narcotics Team ("CNT"). The MPD

Chief will assume responsibility for the administration and

oversight of CNT which will be a separate division of the MPD. The

Drug Advisory Board and its current membership of law enforcement

stakeholders will continue its multi-jurisdictional advisory

oversight of the CNT drug enforcement programs. CNT will continue

to enforce laws regarding drug sales, trafficking, distribution,

possession and abuse, and to perform services related to the

prevention of drug-related violent crime pursuant to the "County-

City Agreements for Drug Enforcement Activities" dated March 25,

1994 as amended. The funding, staffing and salaries of officers

and agents assigned to CNT will continue pursuant to the "County-

City Agreements for Drug Enforcement Activities" dated March 25,

1994 as amended. CNT will initiate and conduct narcotics

investigations in all of Chatham County. CNT will be located in

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available office space in the Chatham County Police Department

headquarters building in existence on the date of execution of this

Agreement. In order to take advantage of new cooperation and

coordination opportunities created by the merger, within one year

of the effective date of this Agreement the MPD Chief will, in

cooperation with the Drug Advisory Board, prepare a plan for the

improvement of drug enforcement for review by the Policy Committee,

City Council, and the County Commission, with the goal that an

improved program for drug enforcement will be implemented within

two years of the date of this Agreement.

F. Community Policing. The MPD will operate in accordance

with the community policing philosophy and will provide crime

prevention services and community outreach policing.

G. Office of Professional Standards. The services performed

by the County and City Internal Affairs Units at the time of the

execution of this agreement will be performed by the Office of

Professional Standards with the exception of the services performed

by County Internal Affairs for the licensing of alcoholic beverage

establishments in the unincorporated County, which will be assumed

by a unit of the MPD that has the capability and staffing

sufficient to carry out this responsibility.

H. Information Management and Administrative Support

Functions. The information management and administrative support

functions shall each be centralized. Records created after the

date specified by the Implementation Schedule (see Section X) will

be combined into one Records Management System. The City’s

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computer and telephone network will be expanded to include

computers and telephones housed in buildings utilized by the County

Police Department as of the effective date of this Agreement. The

cost of expanding the City’s computer and telephone networks shall

be charged to the MPD budget and funded as provided in Section V.C.

A combined E-911 public safety communications center (Public Safety

Answering Point or "PSAP") will provide all services being provided

by the County and City by the date specified by the Implementation

Schedule (see Section X). The PSAP will be located at the City

Communications Center in existence as of the effective date of this

Agreement. The PSAP will utilize the CAD ("Computer Aided

Dispatch") system used by the City as of the effective date of this

Agreement. The one-time initial cost of renovations and

modifications to the City police barracks, technological changes

and the transfer of communications personnel and equipment to the

City police barracks shall be paid from combined net assets of the

E-911 Funds of the County and City existing as of the effective

date of this Agreement. All equipment acquired after execution of

this Agreement shall be compatible with or have the ability to

communicate with both City and County facilities as required by the

City or County Manager.

III. Employees

A. Transition to MPD. The County Manager and City Manager

will establish a conversion schedule to standardize, to the

greatest extent possible, City job classifications with those of

the County for salary, benefits, duties and responsibilities. It

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is intended that, to the greatest extent possible, no employee of

the City or County Police Department as of the effective date of

this Agreement will suffer a reduction in rank, salary or benefits.

The City Manager and County Manager shall establish a procedure to

fairly review and resolve transitional pay and benefit issues

raised by individual officers resulting from implementation of this

Agreement. All Chatham County Police Department and Savannah

Police Department personnel will be assigned a position within the

MPD.

B. MPD Employees after Transition. Effective on the

employment switch-over date specified by the Implementation

Schedule (see Section X), County employees assigned to the MPD

shall become City employees, and except as otherwise provided in

this Agreement, shall be subject to the personnel policies,

procedures, rules and regulations, pay and benefits of the City.

For vacation accrual purposes, time of service with the County

shall be recognized by the City. Any vacation and sick leave

accrued balances of former County employees shall be credited to

such employees. In cases where such balances exceed the maximum

accrual permitted by City rules, such balance shall be frozen until

usage reduces the balance to the maximum accrual permitted by City

rules, at which point City leave rules shall fully apply.

All costs related to any employee worker’s compensation

claims, or claims of any other nature, that arose from incidents

that occurred prior to the employment switch-over date specified in

the Implementation Plan (see Section X), shall be the

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responsibility of the jurisdiction which employed such employee at

the time of the incident that gave rise to the claim, and shall not

be charged or funded through the MPD budget. The County shall

provide the City with a knowledge affidavit concerning compensable

injuries of former County employees for use in filing claims with

the Subsequent Injury Trust Fund.

C. Health Benefits for former County employees. Former

employees of the County who become employees of the City pursuant

to this Agreement, shall remain participants in the County medical

benefits program after the employment switch-over date specified by

the Implementation Schedule (see Section X).

D. Deferred Compensation(457)Plans/Supplemental Insurances.

The City will continue payroll deductions and distribution for

deferred compensation plans (provided under IRS Code Section 457)

and supplemental insurance plans for former employees of the

County, who are now members of the MPD, who actually participated

in such plans as of the effective date of this Agreement. Any MPD

member desiring to initiate new participation after the effective

date of this Agreement in a deferred compensation program or

supplemental insurance program, shall do so solely through the then

currently authorized City programs.

E. Retirement. MPD members who were County employees on the

employment switch-over date specified by the Implementation

Schedule (see Section X), shall irrevocably elect no later than

December 31, 2004, one of the following retirement plan options:

1. Elect to remain a participant in the Chatham County

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Pension Plan (the "County Pension Plan"). Employees

making this election shall continue to be participants in

the County Pension Plan. Provisions of the County

Pension Plan shall apply to all participants in the

County Pension Plan. The pay of employees who make this

election shall be subject to withholding for employee

pension contributions as specified by the County Pension

Plan. The City shall pay to the County the amount of

such withholdings on a monthly basis.

The employer cost for retirement benefits for such

employees shall be included in the MPD budget and

remitted to the County on a monthly basis. The amount of

such employer cost shall be based on the annual actuarial

valuation of the County Pension Plan and allocated to the

MPD on a basis that fairly approximates the actual

employer normal cost attributable to the employees that

elect this option; however, such amount shall not include

any amount for unfunded past service liability.

2. Employees vested in the County Pension Plan may elect to

"vest" their contributions in the County Pension Plan and

become a new participant in the City Pension Plan.

Employees selecting this option shall end their active

participation in the County Pension Plan, and shall

become new participants in the City Pension Plan. The

pay of employees who make this election shall be subject

to withholding for an employee pension contribution as

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specified by the City Pension Plan.

No transfer of monies from the County Pension Plan

to the City Pension Plan would be necessary, as all

vested assets will remain in the County Pension Plan.

There will be no employer cost for such employees charged

to the MPD by the County. The employer’s normal annual

cost for the City Pension Plan for employees electing

this option shall be included in the MPD budget and

funded as provided in this Agreement.

3. Former County Employees with less than six months of

service with the County (and only such employees) shall

have the option to elect not to participate in the

County Pension Plan and become a new participant in the

City Pension Plan. Employees selecting this option shall

end their potential participation in the County Pension

Plan, and shall become new participants in the City

Pension Plan. Employees making this election shall not

receive credit for any county service time under the City

Pension Plan (unless the employee makes an up-front

payment to the City Pension Plan for the pension benefit

value of such service as determined by the City’s pension

actuary). The pay of employees who make this election

shall be subject to withholding for an employee pension

contribution as specified by the City Pension Plan.

The employer’s normal annual cost for the City

Pension Plan for employees electing this option shall be

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included in the MPD budget and funded as provided in this

Agreement.

Before a former County employee will be eligible to become a

City employee on the employment switch-over date as provided by

this Agreement, he/she must make an election from the above options

by the date specified above. The selection of an option shall be

accomplished by signing an election form in which the former County

employee shall acknowledge and agree that no benefit under the

County Pension Plan can commence until after employment as an

active member of the MPD is permanently terminated, and acknowledge

and agree that such former County employee shall continue

participation in and be subject to the rules and regulations of the

County medical benefits program.

Nothing herein shall prevent either the City or the County

from modifying its pension plan, or any other employee benefit

plan, in the future. Any future modification of the City Pension

Plan shall apply to MPD employees who are participants in the City

Pension Plan, and any future modification to the County Pension

Plan shall apply to MPD employees who are participants in the

County Pension Plan.

All new hires for the MPD shall be participants in the City

Pension Plan as provided by the rules and regulations of that plan.

F. Equal Opportunity and Diversity. The administration and

staff of the MPD will be committed to diversity in the MPD work

force and strive to achieve appropriate minority representation

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goals in recruitment, hiring and promotion. Subject to the equal

opportunity and workforce diversity goals of the City, former

County Police Department employees will be considered on an equal

competitive basis with former City Police Department employees for

transfers to specialized assignments and promotions. No employee

will receive any advantage or disadvantage based on his or her

former department affiliation.

G. Uniforms, Vehicles and Weapons. The uniform of MPD will

be representative of a professional metropolitan police

organization with visual recognition of the rich department history

of the County and City Police Departments. On the effective date

of this Agreement, officers of the MPD will continue to carry the

weapon issued to them until such time as otherwise notified. On the

effective date of this Agreement, officers from the County Police

Department will retain take-home vehicle privileges under the same

procedures and conditions in place with the Chatham County Police

Department on the date of execution of this Agreement. After the

effective date of this Agreement, all sworn personnel from the City

Police Department with field response patrol or investigative

duties will be assigned vehicles. After the effective date of this

Agreement, the City Manager will develop a take-home policy for

sworn personnel to be implemented on an incremental basis.

H. Training. The training programs and schedules of the

County Police Department and City Police Department at the time of

execution of this Agreement will continue until the MPD Training

Unit formulates a training program for the MPD, including training

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in firearms and crowd control.

IV. Legal Representation and Settlement of Claims

The County Attorney will represent the MPD, the City (if so

requested), the County, and MPD officers/employees who are sued for

incidents which occur in the unincorporated area of the County.

The City Attorney will represent the MPD, the City , the County (if

so requested), and MPD officers/employees who are sued for

incidents which occur in the area of jurisdiction of the City.

The County shall be responsible for paying any judgement (or

settling any claim) arising due to an incident which occurred

within the unincorporated area of the County. The City shall be

responsible for paying any judgement (or settling any claim)

arising due to an incident which occurred within the corporate

limits of the City.

The cost of defending or settling any claim or paying any

judgement arising from an incident for which the location of

occurrence can not be determined shall be shared between the City

and County in proportion to the population of the City and the

population of the unincorporated area of the County.

The foregoing not withstanding, the County Attorney shall

represent and defend the MPD, the City (if so requested), the

County, and MPD officers/employees who are sued for any incidents

involving Animal Control, Marine Patrol , or the CNT. As county-

wide functions, the County shall be responsible for paying any

judgement (or settling any claim) involving Animal Control, Marine

Patrol, or the CNT.

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The foregoing not withstanding, settlement of claims involving

vehicular accidents shall be the responsibility of the jurisdiction

which owns the MPD vehicle.

The parties hereto waive any rights of subrogation against the

other for all subject matters covered under this agreement.

V. Funding

A. General Principles. It is the express intent of this

Agreement to provide for fiscal equity between the City and the

County. Each jurisdiction is intended to contribute its fair share

of funding for the MPD. Each jurisdiction is intended to receive

services in accordance with the funding that it provides. The

residents and businesses of unincorporated Chatham County shall

provide MPD funding sufficient to fully and fairly fund the cost of

police services for the unincorporated territory. Likewise, the

residents and businesses of the City shall provide funding

sufficient to fully and fairly fund the cost of police services

within the City. The Board of Commissioners and the City Council

expressly agree to take all required steps to achieve and maintain

fiscal equity upon the implementation of this Agreement and for the

duration of this Agreement.

It is acknowledged that, as of the effective date of this

Agreement, police services in each of the jurisdictions are not

equal and that the tax rates for police services in each

jurisdiction are not equal. The CCPD and SPD are professional,

compatible organizations and the intent of this Agreement is to

increase the availability and effectiveness of police services.

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However, staffing levels differ significantly and taxes paid for

police services differ significantly between the jurisdictions.

Police resources shall not be transferred from one jurisdiction to

the detriment of the other jurisdiction. Taxes and funds provided

by one jurisdiction shall not be used to subsidize the other

jurisdiction.

The demand for police services within the City compared to the

demand for police service within unincorporated territory are not

equal. Therefore, it is acknowledged that after implementation of

this Agreement, the MPD funding per capita (or per dollar of

taxable assessed value) within the City compared to the

unincorporated area may not be equal. This difference in per

capita funding (or per dollar of taxable assessed value) by each

jurisdiction reflects differences in factors such as: (a) police

call volume; (b) crime statistics; (c) geographic response time;

and, (d) police officers per population ratio.

It is acknowledged that because of budget decisions made by

the Commission or the City Council with respect to resources

budgeted in the MPD budget for patrol services for their respective

jurisdictions, the number of patrol officers per capita may be

different, and the resulting service levels or response times for

calls for service may be different, for the City compared to the

unincorporated County.

It is the express intent of this Agreement to place more

officers on the street through the merged MPD than is currently

achieved by the two police departments separately. This will be

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accomplished as normal attrition of excess command positions

occurs. Vacated excess patrol command positions may not be filled

and the salaries of the departing command position will be

reinvested in patrol officer positions for the jurisdiction which

funded the vacated position.

B. MPD Budget. An annual operating budget for the MPD shall

be prepared for each twelve month period commencing each January 1.

The first MPD annual operating budget shall be for the twelve month

period commencing January 1, 2005. As an instrumentality of the

City, the budget for the MPD shall be prepared by the City Manager

in conformity with the requirements of the City Charter and City

Code. However, in preparing the MPD budget, the City Manager shall

consult with the County Manager and County staff designated by the

County Manager.

The City Manager shall apply the Cost Allocation Procedure

provided in Section V.C. to the budgeted expenditures in the

proposed budget to compute the budgeted share of MPD funding to be

provided by the City, the County (on a county-wide basis), the

County SSD (for the unincorporated territory), E-911 County

revenues, and City E-911 revenues for the ensuing year. The MPD

proposed budget and budgeted funding requirements by source shall

be provided to the County Board of Commissioners and to the City

Council in November of each year.

The City Manager, in consultation with the County Manager,

shall modify the proposed MPD budget to conform with the budget

changes requested by the Commission and City Council.

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The budget for the MPD shall be considered and adopted by City

Council as part of the City’s overall operating budget in

conformance with the City Charter. The adopted MPD budget shall be

administered by the City using its customary budget control and

monitoring procedures. All MPD procurement funded by the MPD

operating budget, shall be administered by the City in compliance

with the City’s procurement rules and regulations.

The City shall provide a monthly financial report showing the

line item budgets and year-to-date expenses for the MPD cost

centers.

The County Manager may designate a county employee as an MPD

Budget Analyst, appointed and paid for by the County, whose

responsibility is to work in a coordinated effort with other

financial accounting employees to ensure that the County Manager

has full and complete disclosure of all financial matters relative

to the MPD's use of budgetary funds on behalf of the County. The

intent and purpose of this paragraph is to ensure that the County

Manager receives all financial information necessary to ensure

verification of financial information used by the Board of

Commissioners of Chatham County in determining the budget. The MPD

Budget Analyst shall be a county employee, and the cost of such

employee shall not be included in the MPD budget.

C. Allocation of Costs between City and County. All costs

budgeted and charged to the MPD operating budget shall be allocated

for funding between the City, the County (on a county-wide basis),

the County SSD (for the unincorporated territory), E-911 County

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revenues, and City E-911 revenues in accordance with a "Cost

Allocation Procedure". The procedures described in Exhibit A shall

be the initial Cost Allocation Procedure. The procedures described

in Exhibit A shall be in effect for four years beginning on the

effective date of this Agreement. No less than two years prior to

the expiration of a Cost Allocation Procedure, the parties hereto

shall agree on a new cost allocation procedure to replace the Cost

Allocation Procedure then in effect. A Cost Allocation Procedure

shall continue to be in effect beyond its scheduled expiration

date, if no replacement Cost Allocation Procedure has been adopted

by the parties.

D. County’s Funding Obligation. Prior to December 31 each

year the City Manager shall compute the total share of the adopted

MPD budget using the adopted budget, and the Cost Allocation

Procedure, to prepare an estimate of the share of MPD funding to be

provided by each jurisdiction for the ensuing year.

The County shall pay an amount each month (before the last

business day of the month) to the City equal to one-twelfth of the

annual estimate of the amount of the MPD budget to be funded by the

County on a county-wide basis. The County shall pay such amount

from revenues it has raised on a county-wide basis.

The County shall pay an amount each month (before the last

business day of the month) to the City equal to one-twelfth of the

annual estimate of the amount of the MPD budget to be funded by the

County SSD for the unincorporated share of police service. The

County shall pay such amount from revenues it has raised solely

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from the unincorporated territory or SSD.

The County shall pay an amount each month (before the last

business day of the month) to the City equal the amount it has

received for E-911 fees for the County and any other Cities within

the County. As provided in the Cost Allocation Procedure, such E-

911 fees from the County will be combined with E-911 revenues of

the City to fund the MPD Communications.

After completion of each budget year, actual MPD expenditures

shall be determined by the City Manager. The City Manager shall

provide the County with a statement showing the actual costs of the

MPD and the amount to be funded by the County (on a county-wide

basis), and the amount to be funded by the County SSD (for

unincorporated territory) using the Cost Allocation Procedure. If

the County’s actual share for the year is greater than the monthly

payments made during the year, the difference shall be paid by the

County to the City by August 31st following the end of the budget

year. If the County actual share for the year is less than the

monthly payments made during the year, the difference shall be paid

by the City to the County by August 31st following the end of the

budget year.

Any payments due under this agreement not paid when due shall

accrue interest at a rate equal to the yield of the Georgia Local

Government Investment Pool commencing on the due date.

E. Audit of MPD Police Expenses, Access to Records and

Reporting. As an instrumentality of the City, the MPD accounts

shall be audited annually by an independent firm of accountants as

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part of the annual City audit made in conformance with audit

requirements for municipal governments set forth in state law and

the City Charter.

The County Manager and City Manager (or persons designated by

them) shall have full and open access to all MPD financial records

or other data relating to all matters covered by this Agreement.

The City shall provide a monthly financial report showing the

line item budgets and year-to-date expenses for the MPD cost

centers.

F. Special Police Tax Districts and E-911 Revenues.

1. County Special Police Tax Districts. The County may

establish a special police tax district ("SPTD") in the

unincorporated area of the County to pay for the cost of providing

police services in the unincorporated area of the County pursuant

to the requirements of Georgia Constitution Article 9, § 2, ¶ 6.

The amount of such cost shall be determined as provided in Section

V.C. of this Agreement.

The County may establish a SPTD county-wide to pay for the

cost of providing certain MPD services on a county-wide basis

pursuant to the requirements of Georgia Constitution Article 9, §

2, ¶ 6. The amount of such cost shall be determined as provided in

Section V.C. of this Agreement.

Any future county-wide police services requiring additional

funding, mandated or implemented by the County Commission, shall be

funded by additional funds provided by the County and raised on a

county-wide basis. Any future police services for the

unincorporated area of the county requiring additional funding,

25

mandated or implemented by the County Commission, shall be funded

by additional funds provided by the County and raised from the SSD.

2. Use of E-911 Revenues. Net assets of the County and City

Emergency Telephone System Funds available as of the effective date

of this Agreement shall be used to fund communications related

eligible transition costs as described in Section II.G. New

revenues of the County and City Emergency Telephone System Funds

received after the effective date of this Agreement shall be used

to fund the annual operating costs of the Communications Cost

Center as provided in the Cost Allocation Procedure.

The County shall designate the MPD as its public safety

answering point and, to the extent permitted by law, shall

authorize the City to collect E-911 fees on behalf of the County.

G. Baseline Staffing and Funding Data and Pro-Forma MPD

Budget. It is the intention of the parties that the level of

effort and resources for police functions be maintained at a level

in each jurisdiction that is no less than the level in effect as of

the effective date of this Agreement. For the purpose of

memorializing historical data, this section provides adopted budget

data on staffing and funding levels for police functions for both

jurisdictions in a recent full year prior to implementation of this

Agreement. This data provides an indication of the level of effort

and resources existing prior to the effective date of this

Agreement.

The following tables provide the staffing for police functions

as set forth in the 2002-2003 adopted budget for the County, and

26

the 2003 adopted budget for the City:

Staffing of County Police Functions per 2002-2003 County Budget

Function Sworn Civilian Part-time TotalM&O Budget: Counter Narcotics Team 42 * 7 49 Marine Police Patrol 6 6 Animal Control 1 12 13

SSD Budget: County Police: Office of the Chief 3 4 2 ** 9 Patrol Division 72 1 73 Criminal Investigations 28 3 31 Services Division 6 30 36 Internal Affairs 4 4

CCPD Total 113 38 2 153

County total 162 57 2 221

* Count of 42 includes 21 sworn offices under contract from other jurisdictions.** Count of 2 represents two police chaplains.

Staffing of City Police and Dispatch Functions per 2003 City Budget

Function Sworn Civilian Part-time TotalGeneral Fund: Police Chief 5 2 7 Patrol 288 15 20.52 *** 323.52 Criminal Investigations 93 10 103 Support Services 11 14 25 Information Management 12 23 35 Savannah Impact Program 7 2 9

Public Safety Communications Fund: Police Communications 1 43 44 Fire dispatch 7 7

Grant Fund Aggressive Driving Task Force 5 5

SPD Totals 422 **** 116 20.52 558.52

*** Count of 20.52 represent school crossing guards.**** Count of 422 includes 14 SPD officers detailed to the CNT.

The following tables set forth the budgeted expenditures for

policing functions as set forth in the 2002-2003 adopted budget for

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the County and in the 2003 adopted budget for the City:

Budget for County Police Functions per 2002-2003 County Budget

Function 2002-2003 BudgetM&O Budget:

Counter Narcotics Team $2,601,870

Marine Police Patrol 465,500 Animal Control 634,070

SSD Budget: County Police: Office of the Chief 479,048 Patrol Division 3,885,614 Criminal Investigations 1,650,055 Services Division 1,916,193 Internal Affairs 212,910 CCPD Gross Total 8,143,820 Less Transfer from Emerg Tele Sys Fund (1,237,520) CCPD Net Total 6,906,300

Emergency Telephone System Fund: Transfer to SSD Fund 1,237,520 Other emergency communications 235,510 Less E-911 revenue (1,473,030)

County total $10,607,740

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Budget for City Police and Dispatch Functions per City 2003 Budget

Function 2003 BudgetGeneral Fund:

Police Chief $601,865 Patrol 18,635,325 Criminal Investigations 6,357,794 Support Services 2,793,514 Information Management 1,985,908 Crime Stoppers 174,959 Savannah Impact Program 607,678 Less Reimbursement from CNT for SPD officers (762,000)

Public Safety Communications Fund: Police Communications 2,087,020 Fire dispatch 283,857 Less E-911 revenue (net of wireless reserve) (1,601,766)

Grant Fund Aggressive Driving Task Force 225,296

SPD Totals $31,389,450

It is acknowledged that the total cost of the MPD will exceed

the sum of the two jurisdictions budgets as set forth above due to

i) cost related to achieving salary parity between the departments,

ii) costs that will be recognized as part of the MPD that are

currently borne by non-police related functions within the County

accounts (such as but not limited to worker’s compensation,

disability insurance, computer department services, vehicle use

charges), and iii) costs related to expanding the take-home car

privilege to City police patrol officers.

Exhibit B provides a pro-forma estimate of the MPD budget and

by adding together the current police budgets, plus estimates for

the additional and reallocated costs and applying the Cost

Allocation Procedure as described in Exhibit A.

H. One-time Initial Transition and Start-up Costs. The one-

29

time initial start-up transition costs to implement this Agreement

have been estimated by the City and County Police Departments. The

estimates and the jurisdiction responsible for funding are set

forth below:

Item Estimated CostItems to be funded by County:

Provision of Buildings for Precincts 5 and 6 unknown MPD Uniforms for current County officers $110,085 Remarking of existing County vehicles 6,400 Headquarter renovation costs 12,000

Items to be funded by City:Initial purchase cost of vehicles needed to provide for "take-home" vehicles

1,984,470

MPD Uniforms for current City officers 285,000 Remarking of existing City vehicles 21,000

Item to be funded by E-911 available net assets:Relocation of Public Safety Answering Point 191,800

The 2003-2008 SPLOST plan includes a $2,200,000 allowance

available to the County for Police Facilities/Equipment.

VI. Funding from Grants, Condemnations, or Other Sources

A. Grants. The City through the MPD will aggressively seek

funding through grants and other sources to reduce the costs of

providing police services. A separate Cost Center within the MPD

accounts shall be used to account for expenses funded by such

grants.

B. Condemnations and Forfeitures. All funds derived from

condemnations and forfeitures initiated by the MPD shall be

deposited in the MPD condemnation account and shall be available

for expenditure by the MPD in accordance with all applicable laws,

ordinances, rules and regulations.

All funds derived from condemnations and forfeitures initiated

30

by CNT shall be deposited in the County Confiscated Funds Revenue

Account and shall be available for expenditure by MPD in accordance

with all applicable laws, ordinances, rules and regulations, and

the "County-City Agreements for Drug Enforcement Activities" dated

March 25, 1994 as amended.

Expenditures funded by the MPD condemnation account shall be

charged to an Confiscated Asset Expense Cost Center.

C. Court Revenues. Cases brought to court by the MPD (other

than the CNT) for violations reasonably believed to have been

committed within the City’s corporate limits (as determined by the

MPD Chief) shall be deemed "City Cases". Any court revenue

resulting from City Cases which is eligible to be paid to a police

jurisdiction shall be paid to the City. Such court revenue shall

not be part of the MPD budget and shall not be subject to the cost

allocation methodology provided in Section V.C.

All other cases brought by the MPD (including the CNT) shall

be deemed to be "County Cases". Any court revenue resulting from

County Cases which is eligible to paid to a police jurisdiction

shall be paid to the County. Such court revenue shall not be part

of the MPD budget and shall not be subject to the cost allocation

methodology provided in Section V.C.

The MPD Chief shall establish standard operating procedures

(in cooperation with the County courts) for the MPD to properly

identify all violations as either a City Case or a County Case as

defined above.

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VII. Jail Costs

This section is intended to provide guidance for the

administration of the Inmate Services Service Agreement between the

City and the County. Inmates delivered to the Chatham County

Detention Center by the MPD (other than the CNT) for crimes

reasonably believed to have been committed within the City’s

corporate limits (as determined by the MPD Chief) shall be deemed

"City Prisoners". The cost of jail services for City Prisoners

shall be paid by the City to the County in accordance with the

current Inmate Services Service Fee Agreement. Such jail cost

shall not be part of the MPD budget and shall not be subject to the

cost allocation methodology provided in Section V.C.

All other inmates delivered to the Chatham County Detention

Center by the MPD (including the CNT) shall be deemed to be "County

Prisoners".

The MPD Chief shall establish standard operating procedures

(in cooperation with the management of the Detention Center) to

properly identify each person delivered to the Detention Center as

either a City Prisoner or a County Prisoner as defined above.

VIII. Capital Assets, Equipment and Supplies

A. Inventory of Capital Assets and Equipment. The County

will make a complete inventory of all capital assets and equipment

of the County Police Department, Marine Patrol, Animal Control, and

CNT within six months of the effective date of this Agreement. The

County will place appropriate identification on all assets and

32

equipment within six months of the effective date of this

Agreement. A copy of the County capital asset and equipment

inventory shall be provided to the City.

B. Use of Existing Capital Assets, Equipment and Supplies.

All existing capital assets, equipment and supplies, including but

not limited to buildings, furniture, computer hardware and

software, uniforms, vehicles, specialized law enforcement

equipment, armaments, emergency equipment and supplies, and general

operating supplies in use by and under the ownership or control of

the County and City as of the effective date of this Agreement,

shall be made available to MPD without charge (except as otherwise

provided in this Agreement for vehicles and computer equipment) to

the MPD for rent or depreciation. Upon the termination date or at

the end of the term of this Agreement, all capital assets,

equipment which remain in use will be returned to the governing

body which had ownership or control as of the effective date of

this Agreement.

C. Ownership, Maintenance/Repair, Disposal and Replacement

of Capital Assets, Equipment and Supplies.

1. Ownership of Capital Assets and Equipment. Capital

assets and equipment purchased by the County will remain the

property of the County. Capital assets and equipment purchased by

the City will remain the property of the City. Any salvage value

realized from surplus capital assets shall be paid to the entity

which owned the asset.

33

2. Vehicles.

a. Replacement Vehicles. The County shall replace a minimum

of nineteen (19) police sedan vehicles per year. The County shall

replace a minimum of one (1) vehicle for Marine Patrol and one (1)

vehicle for Animal Control every year. The County shall replace a

minimum of thirteen (13) police sedan vehicles per year for CNT.

Vehicles purchased by the County shall be listed in the County’s

inventory, shall be County property, shall be maintained by the

Chatham County Fleet Maintenance Department, and shall be insured

(or self-insured) by the County.

The City will replace a minimum of thirty (30) vehicles per

year. Vehicles purchased by the City shall be listed in the City’s

inventory, shall be City property, shall be maintained by the City

Vehicle Maintenance Department, and shall be insured (or self-

insured) by the City.

All marked patrol vehicles purchased after the date of the

execution of this Agreement will be of the same color and bear the

markings of the MPD. The MPD Chief shall be consulted on bid

specification for all vehicles purchased for use by the MPD.

b. Vehicle Expense Funding. The MPD budget may include

appropriations for vehicle replacement charges, for each vehicle

assigned to the MPD which shall be paid to the jurisdiction which

owns the vehicle. Such replacement charge amounts shall be

accumulated and reserved by the receiving jurisdiction to

systematically fund new vehicles to replace MPD vehicles that reach

the end of their useful lives. Such replacement charges shall be

34

charged to the MPD Cost Center to which the vehicle is primarily

assigned.

The MPD budget shall also include appropriations to pay each

jurisdiction for the cost of vehicle maintenance performed by their

respective vehicle maintenance departments. Such charges shall be

made to the MPD Cost Center to which the vehicle is primarily

assigned. The amount of such charges shall be determined on a

basis consistent with the methodology used for the determination of

vehicle maintenance charges to all other cost centers throughout

the jurisdiction.

Vehicle related costs shall be allocated among the

jurisdictions for funding as provided by Section V.C.

3. Current County Contracts and Service Agreements. The

County towing service contract as well as service agreements for

the maintenance of capital assets/equipment owned by the County

which were in effect on the effective date of this Agreement shall

remain in effect until their stated normal expiration. The County

shall provide to the City a copy of each such contract and service

agreement. The cost of such contracts shall be charged to the

benefitting Cost Center. Upon the expiration of such contracts,

the City Manager and County Manager shall determine the most

efficient and cost effective means for providing equivalent

services for the MPD and incorporate the costs thereof into the MPD

budget.

4. Costs for Capital Assets, Equipment and Supplies. The

cost of new capital assets, equipment and supplies for the general

35

use of the MPD and the cost of the maintenance, repairs and

replacement thereof shall be funded through the approved budget of

the most appropriate Cost Center, and such cost shall be allocated

to the jurisdictions in accordance with the methodology provided in

Section V.C.

The County and City will each be responsible for the ongoing

maintenance costs for all capital assets and equipment in use by

and under the ownership or control of the County and City,

respectively, as of the effective date of this Agreement. Such

cost shall be charged back to the benefitting MPD Cost Center.

No amount for depreciation (or rent)on capital assets owned by

either party and made available to the MPD shall be charged to the

MPD budget, except for replacement charges for vehicles and

computer equipment as provided herein.

5. Procedures for Maintenance/Repair, Disposal and

Replacement of Capital Assets, Equipment and Supplies. The City

shall follow reasonable and customary procedures for schedules of

maintenance/repair, disposal and replacement of capital assets,

equipment and supplies for the MPD.

IX. Dispute Resolution

Any unresolved question shall be placed in writing through

notice, and the County Manager and the City Manager shall meet

within 10 days of the written notice in a good-faith effort to

resolve the dispute. Any unresolved dispute shall be considered

"contested." Any "contested" items shall be resolved by the

dispute resolution procedure for disputes concerning service

36

delivery strategy agreements as set forth at O.C.G.A 36-70-25.1.

X. Term

The term of this Agreement shall commence upon approval by

both the City Council and the County Commission and shall continue

until June 30, 2023. After execution of this Agreement, the City

Manager, County Manager, and the Chief shall agree on an

Implementation Schedule that specifies dates for completion of the

various aspects of implementation of this Agreement, with the goal

of achieving full implementation by January 1, 2005.

XI. Termination of Agreement

A. Termination. This Agreement may be terminated by the

County or City with 18 months written notice for a violation of

this Agreement. If the 18 months written notice of termination is

provided by either the City or County, the termination period may

be extended up to 6 months by mutual agreement of both parties in

order to provide the County time to adequately staff a police

department and for the merged police department to conduct an

orderly reduction in force. This Agreement may also be terminated

without stated reason by the County or City with 24 months written

notice.

B. Status of Employees upon Termination of Agreement. Upon

written notice of termination of this Agreement, the City and

County in conjunction with the MPD Chief will begin working jointly

to determine job placement for each employee of the MPD who will be

affected by the reduction in force. Each MPD employee will be

given the opportunity to be employed by the County or City in

37

substantially the same position with the same benefits, to the

greatest extent possible.

XII. Miscellaneous

A. Amendments. This Agreement may be amended by the mutual

agreement of the parties hereto. Such amendment shall be in

writing and shall be attached to and incorporated into this

Agreement.

B. Counterparts. This agreement may be signed in several

counterparts, each one of which shall be an original and all of

which when taken together will constitute one agreement between the

parities.

C. Validity and Enforceability. If any provision of this

agreement is held invalid or unenforceable, the validity and

enforceability of the remaining provisions of the agreement shall

not be affected thereby, unless the provision held invalid is a

material element of this agreement.

D. Waivers. No delay or failure to exercise a right under

this agreement shall impair such right or shall be construed to be

a waiver thereof, and any such rights may be exercised from time to

time as often as deemed expedient. Any waiver shall be in writing

and signed by the party granting such waiver.

E. Headings. The headings of the sections of this agreement

have been inserted for convenience of reference only and shall in

no way restrict or otherwise modify any of the terms or provisions

hereof.

F. Parties hereto are sole beneficiaries. This Agreement is

38

made for the sole benefit of the City of Savannah and Chatham

County and is not intended to be construed as conferring benefits

on any other party.

G. Entire Agreement. This Agreement constitutes the entire

and complete agreement and commitments of the parties with respect

to the combining of the City and County police departments, all

prior or contemporaneous understandings arrangements and/or

commitments whether oral or written having been merged herein.

(signatures start of next page)

40

Exhibit A

Cost Allocation Procedure

This Exhibit provides the initial Cost Allocation Procedure for

allocating costs of the MPD between the City, the County (on a

county-wide basis), the County SSD (for the unincorporated

territory), E-911 County revenues, and City E-911 revenues.

Cost Centers and Allocation of Costs between City and County.

All costs budgeted and charged to the MPD operating budget shall be

classified according to Cost Center. For purposes of this

Agreement, a "Cost Center" is a group of expense accounts to which

costs for a group of defined functions are charged. The functions

of the MPD shall be grouped into Cost Centers so that it is

appropriate that all the functions charged to a Cost Center be

allocated between the City and County using the same percentages;

and for the further purpose of providing meaningful accountability

for the management of the MPD.

The following table lists the Cost Centers and the general

functions to be included in each Cost Center for the MPD:

Cost Center Functions Assigned to Cost CenterPolice Chief Office of Chief of Police

Senior Management and support staff PublicInformation

Office of ProfessionalStandards

Internal Affairs

Criminal Investigations Crime investigationsTRAP unitSWAT teamBomb squadDive teamHostage negotiation teamCareer Offender Tracking Unit IntelligenceCenter

41

Pawn shop unit Forensic unit

Support Services TrainingArmory Quartermaster Property Room Budget analysis Volunteer program oversight

Information Management Data entry Document imaging Criminal history Warrant control Records Management System

Emergency Communications Emergency Dispatch for police, fire and EMSCAD system Public Safety Answering Point Communications systemsRadio Maintenance

Precinct Supervision andSupport

Precinct office and occupancy expensesPrecinct Captains Precinct based investigators Precinct non-patrol support staff

City Patrol Beats Salary, fringe benefit and vehicle expensesfor MPD patrol personnel regularly assignedto beats within the City In-city school crossing guardsHorse patrol

County Patrol Beats Salary, fringe benefit and vehicle expensesfor MPD patrol personnel regularly assignedto beats in unincorporated territory SSD school crossing guards (if any)

Savannah Impact Program Savannah Impact Program expensesCounter Narcotics Team Counter Narcotics Team expenses (including

cost of officers assigned from otherjurisdictions)

Marine Patrol Marine patrol expensesAnimal Control Animal Control expensesConfiscated asset expenses Eligible expenses funded by confiscated

assets of the MPDGrant funded expenses Eligible expenses funded by grant programs.

Separate Cost Centers will be establishedfor each grant program

Costs charged to each Cost Center shall be funded by the City,

the County (on a county-wide basis), the County SSD (for

unincorporated costs), or E-911 revenues. The following table

provides the allocation formula among these jurisdictions for each

Cost Center:

42

Percent of Cost Center Expenses to be Funded by:

Cost Center City

County(on

county-wide

basis)

County SSD(for

unincorpor-ated

territory)

Confis-catedAssetsFunds

GrantFunds

Police Chief 79.40% 20.60%

Office of Professional Standards 79.40% 20.60%

Criminal Investigations 79.40% 20.60%

Support Services 79.40% 20.60%

Information Management 79.40% 20.60%

Emergency Communications * 79.40% 20.60%

Precinct Supervision and Support 79.40% 20.60%

City Patrol Beats 100.00%

County Patrol Beats 100.00%

Savannah Impact Program 100.00%

Counter Narcotics Team 100.00%

Marine Patrol 100.00%

Animal Control 100.00%

Confiscated asset expenses 100.00%

Grant funded expenses 100.00%

* Costs of Emergency Communications cost center shall first be funded by combined E-911 revenuesof the City and County (including other jurisdictions E-911 revenues received by the County).Any expenses for this Cost Center not covered by such E-911 revenues shall be allocated asprovided in this table.

The percentages for Police Chief, Criminal Investigations,

Support Services, Information Management, Emergency Communications,

and Precinct Supervision and Support (herein after collectively

referred to as the "Non-Patrol Cost Centers") in the above table

are stated at 79.4% and 20.6% for the City and the County SSD

respectively. These initial percentages were selected so that when

applied to the pro-forma MPD budget, an allocation results which

approximates each jurisdiction’s current budget plus estimated

allowances for each party for new costs (e.g. salary parity and

take-home vehicle costs) and estimates of reallocated costs for

police function costs not currently charged to police functions in

the County accounting system (e.g. worker’s compensation and

computer services). The parties recognize that the cost for these

43

Non-Patrol Cost Centers are more fairly allocated on a per-capita

basis. Based on the 2000 census the population of the City was

131,510 and the population of the unincorporated County as 71,199;

or on a percentage basis 64.9% in City and 35.1% in the

unincorporated County. Accordingly, the percentage allocation for

the Non-Patrol Cost Centers shall be adjusted according to the

following table so that a fair allocation based on population

served will be achieved over a number of years:

CalendarYear

CityPercentage

SSDPercentage

2004 79.4% 20.6%2005 77.4% 22.6%2006 75.4% 24.6%2007 73.4% 26.6%2008 71.4% 28.6%2009 69.4% 30.6%2010 67.4% 32.6%2011 64.9% 35.1%

The 2012 allocation percentages (and years following 2012) shall be

based on the then most recent available official U.S. Census data.

Such allocation percentages however shall be subject to equitable

adjustment (based the estimated population of any annexed areas) in

the event that annexations take place which are not reflected in

the U.S. Census data.

The costs of accomplishing the functions assigned to each Cost

Center including costs for personnel, fringe benefits, contractual

services, supplies, commodities, equipment, internal service fund

charges (using methodology which is consistently applied through-

out the City), vehicle maintenance charges, vehicle replacement

charges, computer replacement charges, insurance, and any other

44

necessary and appropriate costs that would be an expenditure under

generally accepted accounting principles for governmental type

funds shall be charged to the expenditure accounts for that Cost

Center. In measuring costs of personnel it is acknowledged that

wage and salary expenses and related fringe benefit costs for any

MPD member shall be charged each pay cycle to the Cost Center to

which such member is primarily assigned during that cycle. Costs

shall be charged to the MPD Cost Centers on a basis which is

consistent with all other cost centers in the City accounting

structure. Operating costs incurred by the County for the benefit

of the MPD (if provided for by the MPD adopted budget) may be

charged to the benefitting MPD Cost Center and reimbursed to the

County.

After implementation of this Agreement, additional Cost

Centers may be established, existing Cost Centers may be abolished,

or existing Cost Centers may be split into multiple Cost Centers by

agreement of the City and County. Such agreement shall specify the

percentage allocation of costs between the City, County (county-

wide) and the County SSD for any such revised Cost Centers.

The Chief of the MPD shall establish procedures to insure that

vouchers, requisitions, and payroll charges properly reflect the

benefitting Cost Center.

### End of Exhibit A ###

EXHIBIT BPro-Forma Allocation of Estimated MPD Operating Budget

(Based on combining current adopted budgets with estimated allotments by Cost Center and adding allowances for new and reallocated existing)

Cost CenterCity 2003 Budget (1)

County 2002-2003 Budget

(1)

Additional Annual

Operating Expenses due to Merger

(2)

Allocation of Current County

Expenses to Police

Functions (3)

Less County and City E-911 Revenues

Total MPD Budget to be Allocated

Police Chief 601,865 691,958 45,830 1,339,653CrimeStoppers 89,959 85,470 175,429Criminal Investigations 6,357,794 1,650,055 139,440 8,147,289Support Services 2,793,514 319,365 26,133 3,139,012Information Management 1,985,908 266,138 19,514 2,271,560Emergency Communications 2,370,877 1,566,200 42,172 -3,074,796 904,453Precinct Supervision and Support 1,232,000 300,000 1,532,000City Patrol Beats 16,641,325 452,863 17,094,188County Patrol Beats 3,585,614 326,610 131,290 4,043,514Savannah Impact Program 607,678 607,678Counter Narcotics Team 2,601,870 71,485 2,673,355Marine Patrol 465,500 11,394 476,894Animal Control 634,070 17,183 651,253Grant funded expenses 225,296 225,296 Total $32,906,216 $12,166,240 $779,473 $504,441 ($3,074,796) $43,281,574

(1) With estimated allocation among MPD Cost Centers (2) Allowances for salary parity and take home vehilces (3) Estimates for worker's compensation, disability insurance, computer services

Total Net City County-Wide SSD Grant City County-Wide SSD GrantCost Center Expenses Percentage Pecentage Percentage Percentage Amount Amount Amount Amount

Police Chief $1,339,653 79.40% 20.60% $1,063,684 $0 $275,969 $0CrimeStoppers 175,429 50.00% 50.00% 87,715 0 87,715 0Criminal Investigations 8,147,289 79.40% 20.60% 6,468,947 0 1,678,342 0Support Services 3,139,012 79.40% 20.60% 2,492,376 0 646,636 0Information Management 2,271,560 79.40% 20.60% 1,803,619 0 467,941 0Emergency Communications 904,453 79.40% 20.60% 718,136 0 186,317 0Precinct Supervision and Support 1,532,000 79.40% 20.60% 1,216,408 0 315,592 0City Patrol Beats 17,094,188 100.00% 17,094,188 0 0 0County Patrol Beats 4,043,514 100.00% 0 0 4,043,514 0Savannah Impact Program 607,678 100.00% 607,678 0 0 0Counter Narcotics Team 2,673,355 100.00% 0 2,673,355 0 0Marine Patrol 476,894 100.00% 0 476,894 0 0Animal Control 651,253 100.00% 0 651,253 0 0Grant funded expenses 225,296 100.00% 0 0 0 225,296 Total $43,281,574 $31,552,751 $3,801,502 $7,702,026 $225,296

Currently Funded Amount in current budgets 31,079,154 3,701,440 6,991,770 225,296Increase (Decrease) $473,597 $100,062 $710,256 $0

Population 131,510 232,048 71,199Cost per capita $240 $16 $108