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02/09/2015 a) From the total amount of the annual budget there shall be deducted estimated revenue from federal "matching funds," state grants, and other service revenues. b) The balance of the annual budget remaining after anticipated revenues have been deducted shall be paid as follows: 1. The county shall pay 50% of the remaining balance. 2. The cities shall pay the remaining 50% of the balance, apportioned in accordance with the following formula: i. One half of said 50% to be apportioned by people units or population. a) Total population of all member cities divided into one-half of the total of the cities' share of the budget equals a factor in cents. b) Population of each member city times the factor in cents equals the share for each city. ii. The remaining one-half of said 50% to be apportioned on the basis of assessed valuation as follows: a) Total assessed value of real and personal property in all member cities divided into one-half of the total of the city's share of the budget equals a factor in mils. b) Assessed value of real and personal property of each member city times the factor in mils equals the share for each city. c) For the purpose of this Agreement the total assessed valuation of real and personal property in all Member Agencies shall be the most recent such total maintained by the off'ices of the County Assessor. d) The figures used for population in each city shall be determined by a method and from a source that is mutually acceptable to the majority of inembers. e) It is understood and agreed that the financial obligations incurred by the Member Agencies under the provisions of this Agreement will be incurred annually, subject to the limitation that the county and cities are financially able to make funds available. � If the Member Agencies representing 25% or more of the county's population do not approve the budget in any�scal year, the proposed budget will be referred back to the Director and the Finance Committee for revision and recommendation. If no resolution can be reached by the committee, the Member Agencies may proceed to adopt budgets that provide those services they deem necessary for adequate emergency services protection as a whole,but any Member Agency shall be financially responsible for that portion of the budget unilaterally adopted. Any Member Agency that does not meet its financial commitment under the adopted budget will lose its voting status and/or other such privileges of inembership as determined by the Council. g) It is further agreed that any excess in federal or state funds, in any year, shall be reviewed by the Finance Committee,who will then make a recommendation to the Council, as to the disposition of the excess funds. h) With respect any Member Agency that is not a City or the County,the amount to be contributed is determined by a negotiation between those Member Agencies and the Director Emergency Services and must be approved by the Council. A letter memorializing the agreed contribution will be an attachment to this Agreement. Article VI- INSURANCE a) The County shall add the Organization and Emergency Services Council to its existing excess liability insurance coverage and shall maintain such coverage in full force and effect during the life of the Agreement. Member Agencies understand that the County is partially self-insured. Unless the Organization decides otherwise, County shall provide for the defense of any claims or litigation within the self-insured retention. Legal representation by the County will ordinarily be provided by the County Counsel. October 17, 2014 Page 9 RESO.#15390 MUFF#304