COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Sheriff and Controller's Offices

DATE:

January 5, 2004

BOARD MEETING DATE:

January 27, 2004

TO:

Honorable Board of Supervisors

FROM:

Sheriff Don Horsley

Tom Huening, County Controller

SUBJECT:

HIDTA funds

Recommendation

Authorize the advancement of county funds for HIDTA expenses, with the understanding that there will be full reimbursement by the federal government.

Background

In 1988, the federal government established high intensity drug trafficking areas (HIDTAs) to provide supplemental funding to state and local law enforcement agencies for narcotics eradication initiatives in regions that featured an inordinately high volume of drug traffic. The aim of HIDTAs is to increase the public's safety by reducing drug-related crime and violence by providing a coordinated joint-operations funding umbrella for local, state, and federal agencies to combine drug control efforts through an outcome-focused, strategy-driven approach. The approach is developed collectively by regional law enforcement agencies under a representative Governing Board. The primary focus of HIDTAs is on hard-drug trafficking such as heroin, methamphetamine, cocaine, and designer drugs. After 9/11, an additional mission has developed to help support homeland security agencies in the interdiction of organized drug sale operations in the US used as a primary means to finance terrorism at home and abroad.

The Northern California HIDTA was created in 1997 and presently serves about 40 local, state and federal agencies spread across ten counties. Since inception, the San Mateo County Sheriff's Office has served as the lead administrative agency for the Northern California HIDTA. In that capacity, your Board has authorized the Sheriff or the Sheriff's designee to execute agreements which involve the expenditure of HIDTA funding as well as other federal and state funding for related narcotics eradication initiative, and has authorized the establishment of a HIDTA Revolving Fund.

Discussion

The federal government reimburses HIDTA-related expenses. However, HIDTA can operate more flexibly and effectively if the County advances the funds for its operation, understanding that the federal government will reimburse expended funds in a timely fashion. Reimbursement occurs after expenses have been incurred and paid for by the San Mateo County Sheriff's Office in its role as administrative agency for the Northern California HIDTA.

Government Code section 25252 allows the Board to authorize the transfer of money from one fund to another, as the public interest requires. We recommend that you authorize the Controller to advance money to the HIDTA Revolving Fund from the County's General Fund in order to pay expenses related to HIDTA activities. The federal government will then reimburse the funds. Each quarter the HIDTA Revolving Fund shall accrue interest at the County Treasurer's general fund interest earning rate, including the accrual of negative interest earnings, in the event the HIDTA Revolving Fund experiences a negative balance that requires a temporary advance from the County's General Fund. If negative interest should be reimbursable to the County, the Resolution provides that it may in the form of administrative fees to the County Controller's Office, or as another expense form allowable under existing federal regulations, as agreed upon by the Sheriff's Office, Controller's Office, County Counsel and HIDTA staff.

The Resolution has been prepared with the assistance of County Counsel, and this report reviewed and approved as to form.

Vision Alignment

This action is consistent with objective No. 7, in that the transaction will enhance and maintain the public safety of residents and visitors. It also is consistent with objective No. 25, in that it supports a regional, collaborative approach to issues.

Fiscal Impact

As the HIDTA is fully federally funded, there is no fiscal impact in the County of San Mateo. HIDTA administrative costs and revenues are budgeted within the Sheriff's Office and most other supporting agencies.