December 18, 2003

SUBJECT: CONTINUATION OF SUPPLEMENTAL LAW ENFORCEMENT FUNDING AND BUDGET MODIFICATION #15

REPORT IN BRIEF

The State Legislature has appropriated $100 million for FY 2003/2004 for the Community Oriented Police Services/Supplemental Law Enforcement Services (COPS/SLES) program.  Using a formula based on population, Sunnyvale has received an allocation of $197,376.  This report, as required by the program, specifies the allocation of the award.  In order to be eligible for the funding, the City Council must consider these written requests each year and appropriate existing or anticipated monies from the County. 

Additionally, this report addresses the continued decline of grant revenues received from both the COPS/SLES and Bureau of Justice Assistance/Local Law Enforcement Block Grant (BJA/LLEBG) programs.  Together, these awards are budgeted to support a Patrol Watch Commander (Public Safety Captain I) and one Internal Affairs Investigator (Public Safety Lieutenant).  The current year allocation from these funding sources is insufficient to pay for these positions.  Furthermore, it is anticipated that revenues from both programs will decline further thus perpetuating the current funding gap into future years.  

Staff recommends Council appropriate the full amount awarded from the COPS/SLES program to the Supplemental Law Enforcement Services Sub-Fund.  Staff has identified alternative sources in order to maintain the funding for these positions and requests Council approval of Budget Modification # 15 to reallocate these resources.

BACKGROUND

In September 1996, Council approved the establishment of the Police Services Augmentation Fund and the Supplemental Law Enforcement Services Sub-Fund to account for grant monies from the COPS/SLES and the BJA/LLEBG programs.  Council appropriated the FY 1996/1997 allocation of $293,461 from the COPS/SLES grant and $63,935 from the BJA/LLEBG program into this new fund.

Initially the funds received from the BJA/LLEBG and COPS/SLES programs were to fund a full-time Domestic Violence Investigator, a Patrol Watch Commander, and participation in the State Bureau of Narcotic Enforcement’s Bay Area Regional Narcotics Task Force.  Beginning in FY 1999/2000 the Department created the Bureau of Professional Standards as part of a departmental reorganization and transitioned a portion of the grant funding into this Bureau.  From FY 1999/2000 through FY 2002/2003 Council approved the use of this grant revenue to fund a Patrol Watch Commander  (Public Safety Captain I) and two Internal Affairs Investigators (Public Safety Lieutenants).

DISCUSSION

For FY 2003/2004, the City received an allocation of $197,376 in COPS/SLES funds and $25,997 in BJA/LLEBG funds.  The BJA/LLEBG funds were accepted by Council in a separate report on October 7, 2003 (RTC#: 03-349).

The following table details the amount of revenue received from each program since FY 1996/1997:

	FY 96/97	FY 97/98	FY 98/99	FY 99/00	FY 00/01	FY 01/02	FY 02/03	FY 03/04
SLES	293,461	297,886	295,694	295,117	289,000	267,997	263,782	197,376
BJA	63,935	68,768	70,158	52,915	41,718	41,198	33,685	25,997

As you can see from the table above the City has experienced a significant decline in the level of revenue received from each agency.  Revenue receipts from the COPS/SLES program have dropped nearly 34% since their peak in FY 1997/1998 while grant revenues from the BJA/LLEBG have declined approximately 63% from their peak in FY 1998/1999.

During FY 1996/1997 – FY 1998/1999 this fund expended less resources than were received from the BJA/LLEBG and COPS/SLES programs and thus developed a reserve from which to balance future expenditures.  However, as revenues began to decline, in FY 1999/2000, the Fund began to draw upon its reserve in order to fully fund the budgeted positions.  To further compound the problem, personnel costs increased sharply over that period, thereby diminishing the level of reserves even further.  Due to the continual decline of funding received from both agencies and the increased personnel costs, the Fund’s reserve can no longer subsidize the listed two positions.

Council approved the reduction of one Internal Affairs Investigator as part of the service level reductions that were approved in the FY 2003/2004 Budget and 10-Year Resource Allocation Plan.  In order to maintain the current staffing level of one Patrol Watch Commander and one Internal Affairs Investigator additional funding will be required.

In order to bridge the funding gap on an ongoing basis, the Department of Public Safety is recommending that one vacant Emergency Medical Services Specialist I position be eliminated, and the funds reappropriated to fully fund the Internal Affairs Investigator.

As part of the FY 2003/2004 Budget, two new non-sworn positions, an Emergency Medical Services Specialist I (EMS I) and an Emergency Medical Services Specialist II (EMS II), were added to enhance the City’s emergency medical services. The EMS I position was added to enhance public education efforts and provide emergency medical services training for both City employees and residents of Sunnyvale.  The EMS II position was added to implement a quality improvement program and provide emergency medical services training within the Department of Public Safety.  Of these two positions, the EMS II position is more critical to enhancing the City’s emergency medical services program.  By not filling the EMS I position, a total of $82,348 would be available to fully fund the Department’s Internal Affairs Investigator.  If this funding is not utilized additional funding will be required in order to sustain the current level of operations.

FISCAL IMPACT

The anticipated COPS/SLES funding award amount of $263,782 was included in the FY 2003/2004 approved budget. Budget Modification #15 accepts the lower grant amount of $197,376.

BUDGET MODIFICATION NO. 15

FISCAL YEAR 2003-2004

	Current	Increase (Decrease)	Revised
Police Services Augmentation Fund
Revenues: SLES/LLEBG	$263,782	$(66,406)	$197,376

Failure to approve appropriations for supplemental law enforcement services within sixty days of this public hearing will result in the City being ineligible to receive the State funds.

	Current	Increase (Decrease)	Revised
General Fund
Program 422: Fire Services	$18,457,591	($82,348)	$18,375,243
Police Services Augmentation Fund
Program 432: Public Safety Administrative and Technical Services	$107,009	$82,348	$189,357

Staff is requesting that Council provide direction regarding the reduction of the EMS I position or recommend alternative on-going sources for the funding shortfall created by the lower than anticipated grant awards.  Council also has the option of further reducing the Internal Affairs Investigator position or identifying a short-term funding solution that could be used for the remainder of the year while the Department of Public Safety operating budget for FY 2004/2005 is being developed.

PUBLIC CONTACT

Public contact was made through posting of the Council agenda on the city's official notice bulletin board, posting of the agenda and report on the city's web page, publication of the Council agenda in the San Jose Mercury News, and the availability of the report in the Library and the City Clerk's Office.

ALTERNATIVES

1. Approve Budget Modification # 15 to:

• Appropriate the grant amount of $197,376 from the COPS/SLES program into the City’s Supplemental Law Enforcement Sub-Fund; and
• Reappropriate $82,348 from the Fire Services Program to the Public Safety Administrative and Technical ServicesProgram.

2. Approve the Budget Modification with alternative funding sources as identified by Council.

3. Do not approve the Budget Modification.

RECOMMENDATION

Staff recommends Alternative 1.

Prepared by:

Heather Tannehill, Manager

Police Services Division

Prepared by:

Mark Eyrich

Management Analyst, Finance

Reviewed by:

Michael Maehler
Acting Director of Public Safety

Reviewed by:

Mary J. Bradley
Director of Finance

Approved by:

Robert S. LaSala
City Manager