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<br />94.12 <br />Subject: <br /> <br />Capital recovery method <br /> <br />Reference: Original ACSEC policy <br /> <br />Source: <br /> <br />Policy: <br /> <br />July 11, 1994 Strategic Planning Guidelines <br /> <br />In the capital recovery component, overall recovery amount depends on <br />whether the CPE involved is leased from the relevant telephone <br />company, owned by the 9-1-1 system, or leased from a third party. <br />Equipment leased from the telephone company should be maintained in <br />"like new" condition. Thus the need for replacement will, more often <br />than not, be a function of new technology. In this instance,. the amount <br />of funds planned for replacement should be the telephone company's <br />non-recurring charge. For purposes of the planning effort, recovery of <br />the selected amount should not exceed seven years from the initial <br />placement of the equipment. In terms of an outright purchase, the cost <br />for the equipment should be used less any costs for intangible expenses <br />such as labor or installation. <br /> <br />ACSEC Policies and Procedures <br />February 1999 <br /> <br />Page 20 <br />