REPORT TO COUNCIL
SUBJECT
Title
Action on the Appropriation of $166,774 in Asset Forfeiture Funds for FY 2024/25 and to Approve the Related Budget Amendment
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Both state and federal narcotics and other criminal convictions can result in the state or federal government seizing cash and property, such as vehicles or boats, that are ultimately disposed of by auction sale, resulting in receipt of some sale proceeds. These proceeds are referred to as “asset forfeiture funds” and are used by the state and federal governments for a variety of purposes, such as training their personnel or safe destruction of hazardous materials (including controlled substances). Recognizing that local public safety departments provide assistance to the state or federal enforcement agency in the investigation of the crimes resulting in asset forfeiture, the funds are shared with the local law enforcement agencies pursuant to California Health and Safety Code Section 11469, et seq., and various federal statutes (e.g., 28 U.S.C. 524, et seq and 21 U.S.C. 881). The Police Department submits a request annually to share in the distribution of funds seized pursuant to judicial and/or administrative actions. These monies may only be used for specific purposes.
Federal regulations do not allow agencies to budget anticipated Forfeiture Funds. Therefore, the City Council must allocate the use of Asset Forfeiture Funds after the money has been received. This report seeks City Council authority to spend $166,774 that has been received from seizure activities that occurred in 2023.
In regard to prior allocations of Asset Forfeiture Funds, at the time of writing this report, the City’s Asset Forfeiture Fund Balance from prior seizures was $201,307 (Federal) and $269,713 (State). These funds were allocated to equipment purchase purchases to enhance our ability to apprehend criminal offenders, attend training and networking opportunities, and increase employee safety to enhance the way we serve the Santa Clara community. Pandemic induced staffing levels City-wide (e.g., ability to obtain quotes, coordinate the acquisitions, implement the inventory of Police Department policies and procedures, conduct the corresponding training, etc.), combined with supply chain issues impacted the ability to spend the entirety of the previously Council approved Asset Forfeiture funded items to date. Staff from various departments will coordinate a work plan to spend the prior allocations over the 2024/25 Fiscal Year.
DISCUSSION
In 2023, a total of 26 criminal cases were initiated by joint state-federal action and processed under federal law. The total value of the assets seized in adoptions and joint adjudicated cases totals $1,200,288. A total of 102 suspects were charged with a controlled substance violation in connection with these cases, and there were 111 alleged offenses under state or federal law. The City has the opportunity to continue to enhance Police Department programs and services with its portion of the funding from these cases, totaling $200,288. At the writing of this report, $166,774 has been received; the timing of the remaining $33,514 is unknown.
Asset Forfeiture funds may only be issued for law enforcement-specific expenditures such as: funding operations and investigations; training and education; facilities improvements; purchase of materials, supplies and equipment; vendor services that are necessary support for law enforcement such as translator services; awards and memorials; awareness campaigns (such as PSAs regarding drugs or gangs). There are a number of limitations on the use of the funds including salaries; litigation related purposes; creation of endowments or scholarships; or supplanting other funding sources for the Police Department. The uses set forth in this report are compliant with these requirements and limitations.
The Police Department is requesting City Council approval for an FY 2024/25 budget amendment of $166,774 for purchases as detailed in the table below. The Police Department will return to Council with a spend plan and an additional budget amendment upon receipt of the balance of the funds ($33,514). As necessary, corresponding updates to policies in connection with the new equipment and required training will be implemented accordingly. None of the equipment being recommended for purchase would be categorized as “military equipment” per Assembly Bill 481.
|
Program Area |
Brief Description of Anticipated Purchase |
Amount Requested |
|
Cell Phone Upgrade / Replacement and Accessories * |
As funding is available, replace up to 189 of the existing 196 Department issued cell phones (minus 7 Android units utilized by CSO for parking enforcement with Data Ticket) Corresponding cell phone accessories (e.g., durable waterproof case, screen protector, wall charger, car charger, car mount, headphones, etc.) |
$160,000 |
|
Community Policing, Awards and Meetings |
Funds to support law enforcement awards and recognition items (e.g., annual awards program, etc.) |
$5,000 |
|
Volunteer Program |
On-going expenses associated with the program (e.g., apparel, recognition items) |
$1,774 |
|
|
Subtotal |
$166,774 |
|
|
Balance of Asset Forfeiture Funds Yet to be Received |
$33,514 |
|
|
Total |
$200,288 |
*The above purchase replaces the Police Department’s cell phones (e.g., iPhone 6s, XR, XS, XS Max, 11, 14 ProMax, and Samsung Galaxy On5), most of which were purchased in early-2020 or later via COP grant funding.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (b)(4) in that it is a fiscal activity that does not involve commitment to a specific project which may result in potential significant impact on the environment.
FISCAL IMPACT
Approval of this request will provide $166,774 to support enforcement, other programs, and needs in the Police Department without using General Fund monies. The table below details the budget action for FY 2024/25, which is subject to the approval of the FY 2024/25 operating budget.
Budget Amendment
FY 2024/25
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Police Operating Grant Trust Fund |
|
Revenue |
|
|
|
|
Other Agencies Revenue |
$0 |
$166,774 |
$166,774 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Seized Asset Funding |
$0 |
$166,774 |
$166,774 |
COORDINATION
The report was coordinated with the Finance and Police Departments and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve the appropriation of Asset Forfeiture Funds in the amount of $166,774 pursuant to State and federal Regulations; and,
2. Approve the FY 2024/25 budget amendment in the Police Operating Grant Trust Fund to recognize seized asset funding in the amount of $166,774 and appropriate that funding to the Seized Asset Funding program in the amount of $166,774 (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Pat Nikolai, Chief of Police
Approved by: Jovan D. Grogan, City Manager