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Report regarding a resolution approving a transfer of $2,236,224 from the Measure W fund to the Police Asset Seizure Fund for the previous purchase of the Community Civic Campus PUC properties. (Justin Lovell, Financial Services Manager and Jeff Azzopardi, Chief of Police)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution approving a transfer of $2,236,224 from the Measure W fund to the Police Asset Seizure Fund for the previous purchase of the Community Civic Campus PUC properties.
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BACKGROUND/DISCUSSION
On July 18, 2017 the Oversight Board for the Successor Agency to the Redevelopment Agency of the City of South San Francisco (Oversight Board) adopted resolution 07-2017 that approved the City’s purchase of the San Francisco Public Utility Commission (PUC property) from the Successor Agency of the Redevelopment Agency in the amount of $7,180,000 for the Community Civic Campus project. The following was the funding for the land purchase:
• $2,440,861 - Measure W Fund
• $2,236,224 - Police Asset Seizure
• $2,502,915 - Infrastructure Reserves
In January of 2019, the City’s auditor began preparing for the FY 2017-18 single audit, where the City’s federal funds are reviewed and audited. Finance staff along with Police Department staff prepared for the audit and reviewed the FY 2017-18 transactions in the Police Asset Seizure fund.
As part of the review, staff were ensuring that the use of the Police Asset Seizure funds were in accordance with the Department of Justice (DOJ) Guide to Equitable Sharing for State, Local, and Tribal Law Enforcement Agencies that was released in September 2018. According to the guidelines, staff determined that to Police Asset Seizure funds should not be used for land purchase but can be used for equipment for the Community Civic Campus project.
To administratively correct this transaction, staff is recommending replacing the Police Asset Seizure funds with Measure W Funds for the purchase of the PUC property. This modification does not change the overall funding plan of the Community Civic Campus. The Police Asset Seizure funds will be used later in the project for purchase of furniture and equipment of the new police station.
FISCAL IMPACT
There is sufficient cash in the Measure W fund to cover the cost of the Police Asset Seizure fund portion of the land purchase. The overall funding plan for the Community Civic Campus does not change.
RELATIONSHIP TO STRATEGIC PLAN
This is an administrative correction and is not related to the Strategic Plan.
CONCLUSION
Adopting a resolution refunding the Police Asset Seizure Fund and replacing the funds with Measure W for the purchase of the PUC properties for the Community Civic Campus project will keep the City’s use of Police Asset Seizure funds in compliance with the Department of Justice guidelines and keep the Community Civic Campus project on its current schedule.