ORANGE COUNTY SCHOOL OF THE ARTS CHARTER SCHOOL

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2. COMPENSATION 2.1 This agreement is intended for OCSA to reimburse the City for the cost of providing a School Resource Officer to OCSA. The Personnel costs provided in the Table below are the maximum Personnel costs that will be invoiced for Year 1. The compensation to be paid to City for performance of Services described in Exhibit "A", including both payment for professional services and reimbursable expenses shall not exceed the cost of one (1) FTE officer, (not including all associated vehicle, uniform, supply, and equipment expenses), Such amount shall not exceed $268,709 per year, or $806,127 over the three- year term, which includes an annual $25,000 contingency and is included in the annual compensation for overtime and other expenses approved by the City and OCSA, The City and OCSA will meet to develop an overtime strategy so both the City and OCSA are in prior agreement regarding the circumstances under which the SRO will be scheduled to work overtime. City agrees to limit charges for service to amounts not to exceed the quotes provided by City to OCSA as set forth in this paragraph, All arrangements for specific work to be performed pursuant to this Agreement and arrangements for payment for such services shall be made solely between City and OCSA. Should City incur additional or unanticipated expenses, City shall provide reasonable notice to OCSA of such expenses and OCSA shall be obligated to pay for, or reimburse, said expenses. 2.2 Personnel costs may be lower and will be based on actual Personnel expenses for the officer assigned. Personnel costs include all salary, premiums, and cashouts provided to the employee through the POA MOU. In addition, Personnel costs include Medicare, Retirement, Health, and Retiree Health benefits. Overtime will be invoiced at the actual overtime rate of the officer, The City and OCSA agree the maximum Personnel costs can increase up to 5% for Year 2, and up to 5% for Year 3, only if the Personnel costs of the selected SRO exceed Year 1 Personnel costs as a result of salary and benefit increases. OCSA will not pay for Fleet expenses, Uniform and Equipment, or Vehicle MDT Data, 23 Should City and OCSA agree to enter into a contract exceeding the scope of or differing from the services listed in Exhibit "A" attached, that contract, and any compensation due, shall be the subject of a further and separate writing executed between OCSA and City. OCSA agrees and understands the rate schedule as set in the Table below, is subject to change on an annual basis to reflect actual costs and may only be changed subject to the written approval of the Santa Ana City Manager and OCSA's Board of Directors or their designee(s).