Agenda Item No. 10
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 24, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: John Peters, Chief of Police
SUBJECT: 2024 Federal Equitable Sharing Agreement
RECOMMENDATION
Adopt the Resolution authorizing the Mayor and the Chief of Police to sign a Federal Equitable Sharing Agreement that will allow the City to receive federally forfeited assets from adjudicated cases, pursuant to the Federal Equitable Sharing Program.
BACKGROUND
The City of Grover Beach is a participating agency in the San Luis Obispo County Special Operations Unit (SOU), a multi-agency narcotics task force coordinated by the Sheriff’s Office of San Luis Obispo County. As a result of our participation, the City has the opportunity to receive federally forfeited funds including equipment purchased with such funds from the SOU. However, in order to receive such assets, the City needs to have the Federal Equitable Sharing Agreement on file with the Department of Justice and the Department of the Treasury. Typically, any forfeited assets have been and will continue to be maintained and used by the County’s SOU as determined by the Sheriff’s Office.
In addition to being a participating agency with the SOU, the Police Department also conducts street-level narcotics investigations. Some of the investigations conducted by SOU and GBPD may result in the seizure of assets (cash and/or property) that could be determined to be the proceeds of illegal drug transactions or used in the furtherance of such transactions. These drug assets may be seized under state or federal law. If the assets are proved to be drug-related, they are subject to forfeiture by a court of law. Once deemed legally forfeited, the assets may be available to be shared with agencies that were involved in the original investigation.
There are strict guidelines under both state and federal law governing the use of forfeited assets by cities and counties. These assets must be used for law enforcement purposes to supplement the regular budget “above and beyond” those items that are normally or already budgeted for.
There are strict prohibitions against supplanting General Fund allocations with forfeited funds.
The use of forfeited assets is a very cost-effective way to further our public safety goals without impacting the General Fund.
If a drug asset is forfeited under federal law, the responsible federal agency is not able to transfer that asset to local law enforcement agencies involved in the case without a signed Federal Equitable Sharing Agreement on file with both the Department of Justice and the Department of the Treasury. This agreement states that the City will comply with the following conditions upon receipt of a federally forfeited asset:
Staff Report: Federal Equitable Sharing Agreement Page 2 July 24, 2023
1. The forfeited funds will not be commingled with funds from other sources and will be accounted for using a separate revenue account or accounting code.
2. Interest earned on federally forfeited assets must be accounted for in the same account as the forfeited assets.
3. The forfeited funds will be subject to all standard accounting requirements as well as to specific requirements for federally forfeited funds.
4. The City (via the Police Department) will submit annual Certification Reports to the Department of Justice and the Department of the Treasury accounting for the shared federal funds.
The Police Department will be responsible for ensuring the City’s compliance with the agreement, including the annual reporting. Staff will work with the Administrative Services Department regarding the accounting aspects of the agreement to ensure the forfeited funds and earned interest are tracked separately from other funds and utilized in accordance with federal law. The Federal Equitable Sharing Agreement each year requires the signatures of both the head of the Governing Body for the City and the Chief of Police.
FISCAL IMPACT
The City generally does not receive federally forfeited funds though approval of the recommended agreement is necessary if such funds are shared with the Police Department. If this occurs, the funds will benefit the City for one-time allocations such as equipment purchases or training. There will be a minimum amount of staff time needed within the Police Department to ensure proper accounting of the funds and compliance with the sharing agreement.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt the Resolution authorizing the Mayor and the Chief of Police to sign a Federal Equitable Sharing Agreement that will allow the City to receive federally forfeited assets from adjudicated narcotics cases, pursuant to the Federal Equitable Sharing Program.
2. Do not adopt the Resolution authorizing the Mayor and the Chief of Police to sign the sharing agreement and thus the City will not be eligible to receive federally forfeited assets from investigations Police Department personnel were involved in.
3. Provide direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution No. 23-
2. Draft Federal Equitable Sharing Agreement
Attachment 1
RESOLUTION NO. 23-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA AUTHORIZING THE MAYOR AND THE CHIEF OF POLICE TO
SIGN A FEDERAL EQUITABLE SHARING AGREEMENT
WHEREAS, each year the City of Grover Beach is required to submit a Federal Equitable Sharing Agreement in order to receive federally forfeited funds or assets; and WHEREAS, the Agreement sets forth the requirements for participation in the Federal Equitable Sharing Program; and
WHEREAS, the Agreement must be signed by the head of the Governing Body for the City and the Chief of Police; and
WHEREAS, any shared asset shall be used for law enforcement purposes in accordance with the statutes and guidelines that govern the Federal Equitable Sharing Program.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach does hereby authorize the Mayor and the Chief of Police to sign a Federal Equitable Sharing Agreement.
On motion by ________________, second by ________________, and on the following roll call vote, to wit:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
the foregoing Resolution was PASSED, APPROVED, AND ADOPTED at a Regular Meeting of the City Council of the City of Grover Beach, California, this 24th day of July, 2023. ** D R A F T **
___________________________________
KAREN BRIGHT, MAYOR
ATTEST:
______________________________
WENDI SIMS, CITY CLERK
Equitable Sharing Agreement and Certification
OMB Number 1123-0011
Expires: December 31, 2024
Agency Name: Grover Beach Police Department
NCIC/ORI/Tracking Number: CA0400200
Mailing Address: 711 Rockaway Ave
Type: Police Department
FY End Date: 06/30/2023 Agency FY 2024 Budget: $7,378,410.00 Phone: 8054734507 Email:[email protected]
Name: Peters, John
ESAC Preparer
Phone: Email:
Name:
Jurisdiction Finance Contact
Agency Finance Contact
Phone:
Name: Peters, John
8054734507 Email:[email protected]
Purcell, Deanne
8054734550 [email protected]
Grover Beach, CA 93433
Beginning Equitable Sharing Fund Balance
Equitable Sharing Funds Received
Equitable Sharing Funds Received from Other Law Enforcement Agencies and Task Force
Other Income
Interest Income
Total Equitable Sharing Funds Received (total of lines 2-5) Equitable Sharing Funds Spent (total of lines a - n)
Ending Equitable Sharing Funds Balance
(difference between line 7 and the sum of lines 1 and 6) Summary of Equitable Sharing Activity Justice Funds Treasury Funds $0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
1 2
3 4
5 6
7 8
Summary of Shared Funds Spent
Law Enforcement Operations and Investigations
Law Enforcement, Public Safety, and Detention Facilities Training and Education
Law Enforcement Equipment
Joint Law Enforcement/Public Safety Equipment and Operations Contracts for Services
Law Enforcement Travel and Per Diem
Law Enforcement Awards and Memorials
Drug, Gang, and Other Education or Awareness Programs
Matching Grants
Transfers to Other Participating Law Enforcement Agencies Support of Community-Based Programs
Non-Categorized Expenditures
Salaries
Total
Justice Funds Treasury Funds
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
a
b
c
d
e
f
g
h
i
j
k
l
m
n
Department of Justice Asset Forfeiture Program Investigative Agency participants are: FBI, DEA, ATF, USPIS, USDA, DCIS, DSS, and FDA Department of the Treasury Asset Forfeiture Program participants are: IRS-CI, ICE, CBP and USSS. 1 2
1 2
Annual Certification Report
Date Printed: 07/03/2023 Page 1 of 5
Attachment 2
Equitable Sharing Funds Received From Other Agencies
Transferring Agency Name Justice Funds Treasury Funds
Other Income
Other Income Type Justice Funds Treasury Funds
Matching Grants
Matching Grant Name Justice Funds Treasury Funds
Transfers to Other Participating Law Enforcement Agencies Receiving Agency Name Justice Funds Treasury Funds
Support of Community-Based Programs
Recipient Justice Funds
Non-Categorized Expenditures
Description Justice Funds Treasury Funds
Salaries
Salary Type Justice Funds Treasury Funds
Paperwork Reduction Act Notice
Under the Paperwork Reduction Act, a person is not required to respond to a collection of information unless it displays a valid OMB control number. We try to create accurate and easily understood forms that impose the least possible burden on you to complete. The estimated average time to complete this form is 30 minutes. If you have comments regarding the accuracy of this estimate, or suggestions for making this form simpler, please write to the Money Laundering and Asset Recovery Section at 1400 New York Avenue, N.W., Washington, DC 20005.
The Department of Justice is collecting this information for the purpose of reviewing your equitable sharing expenditures.
Providing this information is voluntary; however, the information is necessary for your agency to maintain Program compliance.
Information collected is covered by Department of Justice System of Records Notice, 71 Fed. Reg. 29170 (May 19, 2006), JMD-022 Department of Justice Consolidated Asset Tracking System (CATS). This information may be disclosed to contractors when necessary to accomplish an agency function, to law enforcement when there is a violation or potential violation of law, or in accordance with other published routine uses. For a complete list of routine uses, see the System of Records Notice as amended by subsequent publications.
Privacy Act Notice
Single Audit Information
Company:
Name:
Independent Auditor
Erin Nagle
Phone:
Glenn Burdette
8055441441 Email: [email protected]
Date Printed: 07/03/2023 Page 2 of 5
Were equitable sharing expenditures included on the Schedule of Expenditures of Federal Awards (SEFA) for the jurisdiction's Single Audit for the prior fiscal year? If the jurisdiction did not meet the threshold to have a Single Audit performed, select Threshold Not Met.
NO
Prior Year Single Audit Number Assigned by Federal Audit Clearinghouse: NA
YES X THRESHOLD NOT MET
Date Printed: 07/03/2023 Page 3 of 5
Under penalty of perjury, the undersigned officials certify that they have read and understand their obligations under the Guide to Equitable Sharing for State, Local, and Tribal Law Enforcement Agencies (Guide) and all subsequent updates, this Equitable Sharing Agreement, and the applicable sections of the Code of Federal Regulations. The undersigned officials certify that the information submitted on the Equitable Sharing Agreement and Certification form (ESAC) is an accurate accounting of funds received and spent by the Agency.
The undersigned certify that the Agency is in compliance with the applicable nondiscrimination requirements of the following laws and their Department of Justice implementing regulations: Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq.), Title IX of the Education Amendments of 1972 (20 U.S.C. § 1681 et seq.), Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794), and the Age Discrimination Act of 1975 (42 U.S.C. § 6101 et seq.), which prohibit discrimination on the basis of race, color, national origin, disability, or age in any federally assisted program or activity, or on the basis of sex in any federally assisted education program or activity. The Agency agrees that it will comply with all federal statutes and regulations permitting federal investigators access to records and any other sources of information as may be necessary to determine compliance with civil rights and other applicable statutes and regulations.
Affidavit
Equitable Sharing Agreement
This Federal Equitable Sharing Agreement, entered into among (1) the Federal Government, (2) the Agency, and (3) the Agency's governing body, sets forth the requirements for participation in the federal Equitable Sharing Program and the restrictions upon the use of federally forfeited funds, property, and any interest earned thereon, which are equitably shared with participating law enforcement agencies. By submitting this form, the Agency agrees that it will be bound by the Guide and all subsequent updates, this Equitable Sharing Agreement, and the applicable sections of the Code of Federal Regulations.
Submission of the ESAC is a prerequisite to receiving any funds or property through the Equitable Sharing Program.
1. Submission. The ESAC must be signed and electronically submitted within two months of the end of the Agency’s fiscal year. Electronic submission constitutes submission to the Department of Justice and the Department of the Treasury.
2. Signatories. The ESAC must be signed by the head of the Agency and the head of the governing body. Examples of Agency heads include police chief, sheriff, director, commissioner, superintendent, administrator, county attorney, district attorney, prosecuting attorney, state attorney, commonwealth attorney, and attorney general. The governing body head is the head of the agency that appropriates funding to the Agency. Examples of governing body heads include city manager, mayor, city council chairperson, county executive, county council chairperson, administrator, commissioner, and governor. The governing body head cannot be an official or employee of the Agency and must be from a separate entity.
3. Uses. Shared assets must be used for law enforcement purposes in accordance with the Guide and all subsequent updates, this Equitable Sharing Agreement, and the applicable sections of the Code of Federal Regulations.
4. Transfers. Before the Agency transfers funds to other state or local law enforcement agencies, it must obtain written approval from the Department of Justice or Department of the Treasury. Transfers of tangible property are not permitted.
Agencies that transfer or receive equitable sharing funds must perform sub-recipient monitoring in accordance with the Code of Federal Regulations.
5. Internal Controls. The Agency agrees to account separately for federal equitable sharing funds received from the Department of Justice and the Department of the Treasury, funds from state and local forfeitures, joint law enforcement operations funds, and any other sources must not be commingled with federal equitable sharing funds.
The Agency certifies that equitable sharing funds are maintained by its jurisdiction and the funds are administrated in the same manner as the jurisdictions's appropriated or general funds. The Agency further certifies that the funds are subject to the standard accounting requirements and practices employed by the Agency's jurisdiction in accordance with the requirements set forth in the Guide, any subsequent updates, and the Code of Federal Regulations, including the requirement to maintain relevant documents and records for five years.
The misuse or misapplication of equitably shared funds or assets or supplantation of existing resources with shared funds or assets is prohibited. The Agency must follow its jurisdiction's procurement policies when expending equitably shared funds.
Failure to comply with any provision of the Guide, any subsequent updates, and the Code of Federal Regulations may subject the Agency to sanctions.
6. Single Audit Report and Other Reviews. Audits shall be conducted as provided by the Single Audit Act Amendments of 1996 and OMB Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards. The Agency must report its equitable sharing expenditures on the jurisdiction's Schedule of Expenditures of Federal Awards (SEFA) under Assistance Listing Number 16.922 for Department of Justice and 21.016 for Department of the Treasury. The Date Printed: 07/03/2023 Page 4 of 5
Yes No
Agency Head
Name:
Title:
Email:
Governing Body Head
Name:
Title:
Email:
To the best of my knowledge and belief, the Agency's current fiscal year budget reported on this ESAC is true and accurate and the Governing Body Head whose name appears above certifies that the agency's budget has not been supplanted as a result of receiving equitable sharing funds. Entry of the Governing Body Head name above indicates his/her agreement to abide by the policies and procedures set forth in the Guide, any subsequent updates, and the Code of Federal Regulations.
I certify that I have obtained approval from and I am authorized to submit this form on behalf of the Agency Head and the Governing Body Head.
X
Peters, John
Chief of Police
[email protected]
Bright, Karen
Mayor
[email protected]
Date:
To the best of my knowledge and belief, the information provided on this ESAC is true and accurate and has been reviewed and authorized by the Law Enforcement Agency Head whose name appears above. Entry of the Agency Head name above indicates his/her agreement to abide by the Guide, any subsequent updates, and the Code of Federal Regulations, including ensuring permissibility of expenditures and following all required procurement policies and procedures.
Signature: ___________________________________________________________ Date:
Department of Justice and the Department of the Treasury reserve the right to conduct audits or reviews.
7. Freedom of Information Act (FOIA). Information provided in this Document is subject to the FOIA requirements of the Department of Justice and the Department of the Treasury. Agencies must follow local release of information policies.
8. Waste, Fraud, or Abuse. An Agency or governing body is required to immediately notify the Department of Justice's Money Laundering and Asset Recovery Section and the Department of the Treasury's Executive Office for Asset Forfeiture of any allegations or theft, fraud, waste, or abuse involving federal equitable sharing funds.
During the past fiscal year: (1) has any court or administrative agency issued any finding, judgment, or determination that the Agency discriminated against any person or group in violation of any of the federal civil rights statutes listed above; or (2) has the Agency entered into any settlement agreement with respect to any complaint filed with a court or administrative agency alleging that the Agency discriminated against any person or group in violation of any of the federal civil rights statutes listed above?
Signature: ___________________________________________________________ ________________________________
________________________________
Civil Rights Cases
Date Printed: 07/03/2023 Page 5 of 5