ZSU Controller voiced concern regarding alleged 'contradicting rules' contained in local directives and those in FAA national orders.

Narrative

[This report involves] contradicting rules. I was working combined [Sectors] R1/R5. Our ASR-8 was out for maintenance. We're obligated to work the VFR [traffic] to the airport due to our LOA; even though sometimes the VFRs drop from our RADAR due to their altitude and contrary of the 7110.65. I had aircraft X; VFR from the southeast; inbound to SJU [(TJSJ)]. My sequence was #1 VFR on right downwind and #2; aircraft X; both handed off to the Tower. I switched the first one and held onto aircraft X to ensure the sequence. I went on doing something else and within seconds I receive a call from the Tower asking me if I'm working aircraft X; because it appeared on his coast/suspend list. At the moment; I didn't recall because it disappeared from my RADAR. A second later it reappeared. Management believes that with the MOSAIC sensor you are able to see to ground because its feed is from different sensors. Well; we can't see to the ground; there are a lot of blind spots. Our nearest sensor is PICO; which is approximately 13 to 14 miles southeast of the airport; but it's on a mountain about 3637 FT high. The VFR traffic from the east that enters to the right downwind passes about 4 to 5 miles north of this mountain. Due to the line of sight from this sensor you can't see to the ground. Our second nearest sensor is St. Thomas; which is about 56 to 57 miles from San Juan Airport. Our LOA between Approach controllers and the San Juan Tower is contradicting. Our LOA states; '6. Outages C. San Juan ASR-8 outages (1) Class C services are suspended however; RADAR services and sequencing will continue to be provided using MOSIAC capabilities (2) SJU must: (a) Broadcast via the ATIS that Class C service is not available; (b) Revert to ZSU MOSAIC; the 7110.65 states: Chapter 7-8-2; (e) When RADAR outages occur; advise aircraft that Class C is not available and; if appropriate; when to contact the Tower. My recommendation is to terminate the VFR aircraft as per the 7110.65.