REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 9, 2024
FROM
JASON ANDERSON, District Attorney
SUBJECT
Title
Amendment to Grant Award Agreement with the California Insurance Commissioner for Organized Automobile Fraud Activity Interdiction Program
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 1 to Grant Award Agreement No. 23-1193 with the California Insurance Commissioner, for an additional $51,994, increasing the grant award from $454,270 to a total award amount of $506,264, to fund the Organized Automobile Fraud Activity Interdiction Program, with no change to the period of July 1, 2023 through June 30, 2024.
2. Adopt Resolution, as required by the California Department of Insurance, approving the Amended Grant Award Agreement and authorizing the Chief Deputy District Attorney to electronically sign and submit the Amendment to the Grant Award Agreement, and any related documents, on behalf of the County, subject to review by County Counsel.
3. Authorize the Auditor-Controller/Treasurer/Tax Collector to post the necessary budget adjustment of $51,994, as detailed in the Financial Impact section, in the District Attorney’s 2023-24 budget (Four votes required).
4. Direct the Chief Deputy District Attorney to transmit Amendment No. 1 to Grant Award Agreement No. 23-1193 to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Michael Fermin, Chief Assistant District Attorney, 382-3662)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this item will not result in the need for additional Discretionary General Funding (Net County Cost). Although the total grant award of $506,264 does not fully fund the annual salary and benefits cost estimated at $537,216 for grant staff (one Deputy District Attorney and one District Attorney Senior Investigator), the additional revenue will further offset staffing costs incurred in the District Attorney’s (DA) General Fund.
Funds received from the Department of Insurance (DOI) are deposited into the Special Revenue Fund 2754, which is then transferred to the DA’s General Fund for reimbursement of expenses paid for the unit. Due to the timing of the receipt of funds from the DOI, all expenses are paid out of the DA’s General Fund to avoid a negative balance in the Special Revenue Fund. The estimated shortfall of $30,952 is Net County Cost included in the District Attorney’s (Department) 2023-24 budget. A budget adjustment for the additional $51,994 is requested below:
|
Fund Center |
Commitment Item |
Description |
Action |
Amount |
|
4500002754 |
40408955 |
State-Grants |
Increase |
$51,994 |
|
4500002754 |
55405010 |
Salaries &Benefits Transfers Out |
Increase |
$51,994 |
|
4500001000 |
55415011 |
Salaries & Benefits Transfers In |
Increase |
$51,994 |
|
4500001000 |
51001010 |
Regular Salaries |
Increase |
$51,994 |
BACKGROUND INFORMATION
The California DOI administers the Organized Automobile Fraud Activity Interdiction Program (Program) under the direction of the State Insurance Commissioner and pursuant to California Insurance Code Section 1874.8. The Program is a state grant for District Attorneys to support joint enforcement work by the local District Attorney, DOI, and the California Highway Patrol in tackling organized automobile fraud activity in urban centers. The organized nature of the activity requires more than one criminal actor and customarily involve larger scale criminal schemes. These schemes drive up car insurance premiums and endanger the safety of the public.
The DOI distributes grant funds to offices of the district attorney statewide for the purpose of investigating and prosecuting organized automobile fraud. The acceptance of this grant amendment aligns with the goal of providing for the safety of County residents by assisting the Department in the investigation and prosecution of automobile fraud crimes. The Department has been receiving grant funds for this purpose since 2005.
On November 14, 2023 (Item No. 32), the Board of Supervisors (Board) approved Grant Award Agreement No. 23-1193 with the California Insurance Commissioner, in the amount of $454,270 for the Program. The grant is used to partially fund one Deputy District Attorney IV and one District Attorney Senior Investigator assigned to the Program. On March 5, 2024, the Department was notified of additional grant funding in the amount of $51,994. The additional grant funding of $51,994 will offset salary and benefit costs of staff assigned to the Program.
The Department received a mid-cycle increase to its grant award last year and is receiving a mid-cycle increase again this year. This mid-cycle increase to the grant award does not happen every year but it is not unusual. The DOI reconciles its initial allocation to awarded counties with the balance of remaining funds. If there are more funds available after the reconciliation, DOI provides additional funds to awarded counties.
This year, DOI has an additional $783,000 of which $51,994 is being awarded to San Bernardino County. DOI does not require any program changes or new initiatives to receive the additional funding and has directed that the Department continue the investigation and prosecution of the Program.
The DOI requires a Resolution from the Board approving the Amended Grant Award Agreement and authorizing the Chief Deputy District Attorney to electronically sign the amendment to the Grant Award Agreement.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Richard Luczak, Deputy County Counsel, 387-5455) on March 18, 2024; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on March 18, 2024; Finance (Kathleen Gonzalez, Administrative Analyst, 387-5412) on March 22, 2024; and County Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-5423) on March 25, 2024.