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September 1, 2026
ITEM TITLE
Grant Acceptance and Agreements: Accept a Grant and Approve an Agreement with the California Board of State and Community Corrections, Approve Agreements with SBCS Corporation and SANDAG for the Proposition 64 Grant Program, and Appropriate Funds
Report Number: 26-0276
Location: No specific geographic location
Department: Police
G.C. § 84308 Regulations Apply: No
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt the following resolutions:
A. Accepting $3,207,603 in grant funds from the California Board of State and Community Corrections for the Proposition 64 Public Health and Safety Grant Program and appropriating $855,238 to the fiscal year 2026-27 Police Grants Section of the State Grants Fund (4/5 Vote Required) B. Approving Agreement Number BSCC 1430-26 with the Board of State Community Corrections for the Proposition 64 Public Health and Safety Grant Program
C. Approving agreements with SBCS Corporation and SANDAG for the Proposition 64 Public Health and Safety Grant Program
SUMMARY
The Police Department has been awarded $3,207,603 through the California Board of State and Community Corrections (“BSCC”) Proposition 64 Public Health and Safety Cohort 4 grant. The award has been granted to continue the robust program funded by the Cohort 2 and Cohort 3 grants. In partnership with SBCS Corporation (formerly South Bay Community Services) and San Diego Association of Governments (SANDAG), the Police Department will monitor licensed/legal cannabis dispensaries, identify and mitigate P a g e | 2
illegal dispensaries, continue its youth, parent and community ed ucation program, and enhance its youth diversion program for the City.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
Background
In May 2021, the Police Department was awarded $1,000,000 through Cohort 2 of the Proposition 64 Public Health and Safety (Prop 64 PH&S) Grant Program for a three-year project period. The grant is funded through the California State and Local Government Law Enforcement Account and administered by the Board of State and Community Corrections (BSCC). The grant supports local efforts to address the public health and safety impacts associated with the legalization of adult-use recreational cannabis in California.
In May 2023, the Police Department was awarded $2,705,250 through Cohort 3 of the Prop 64 PH&S Grant Program for a five-year project period. Cohort 3 continued and expanded the City's efforts to address illegal cannabis activity, improve regulatory compliance, and reduce youth access to cannabis.
Current Award
In June 2026, the City Manager's Office received notification of a $3,207,603 Prop 64 PH&S Cohort 4 grant award. The Cit y will use the grant funding to continue and expand a coordinated, multi -agency initiative involving the City Manager's Office, Police Department, SBCS Corporation, and SANDAG.
The proposed project builds upon the City's experience and accomplishments under Prop 64 PH&S Cohorts 2 and 3 and incorporates lessons learned and data collected through those programs. The project is designed to strengthen cannabis regulatory compliance, enhance enforcement efforts, reduce youth access to cannabis, and expand prevention, intervention, and education services. The need for these efforts continues as the community addresses youth cannabis use, declining perceptions of the risks associated with cannabis, and ongoing illegal cannabis activity.
The project consists of four integrated components:
1. Cannabis Business Compliance : Police Department will enhance compliance among licensed cannabis businesses through regulatory inspections, business training, product testing, and minor decoy operations.
2. Illegal Cannabis Enforcement: Police Department will proactively identify, investigate, and address illegal cannabis activity through intelligence-driven enforcement efforts and quarterly enforcement operations.
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3. Youth Safety and Officer Training : Police Department will promote youth safety and enhance officer readiness through training on applicable cannabis laws and regulations, as well as thorough investigations of cannabis-related juvenile cases.
4. Youth Prevention and Intervention : SBCS will provide assessment -driven diversion, prevention, and intervention services to Chula Vista youth. Services will include evidence -based counseling, cannabis education, family engagement, community service opportunities, and community prevention messaging.
Grant funding will support the salaries a nd benefits of a police officer assigned to the Police Department's Special Investigations Unit to oversee the program, administer grant -related activities, review cannabis business license applications, and serve as a liaison with cannabis businesses and the community. For the first two years of the Cohort 4 project, Cohort 3 activities will overlap with Cohort 4 from July 1, 2026, through April 30, 2028. Due to current staffing limitations, an officer working overtime will initially perform the duties ass ociated with the Cohort 4 position until a detective becomes available to assume these responsibilities. Upon completion of Cohort 3, a detective will be assigned to the Cohort 4 program.
The grant also provides overtime funding for police personnel to conduct cannabis business inspections and minor decoy operations. Additional grant -funded equipment and enforcement resources include vehicle tracking devices, body armor, enforcement buy/bust funds, two detective vehicles, one evidence van, covert vehicle cameras, and officer training. The grant further provides funding for contractual services with SBCS to deliver youth development, prevention, and intervention programs and with SANDAG to conduct an independent evaluation of the grant program and its outcomes.
The Prop 64 PH&S Cohort 4 award covers a five-year project activity period from July 1, 2026, through June 30, 2031. Following the conclusion of the project activity period, an additional six -month closeout period from July 1, 2031, through December 3 1, 2031, will be used to complete the Final Local Evaluation Report conducted by SANDAG and any required program-specific compliance or financial audit activities.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act. (Gov. Code, § 87100, et seq.) Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Approval of Resolution A accepts $3,207,603 in grant funds from the Board of State and Community Corrections for the Proposition 64 Public Health and Safety Grant Program. As outlined in the chart below, there is an appropriation of $855,238 to the fiscal year 2026-27 budget for year 1 of the 5-year grant period.
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CATEGORY FY 2026-
27 FY 2027-
28 FY 2028-29 FY 2029-
30 FY 2030-
31 5-YEAR
TOTAL
Detective Salaries and
Benefits $216,849 $222,952 $229,234 $235,699 $242,351 $1,147,085 Overtime $98,862 $101,644 $104,508 $107,456 $110,488 $522,958 Diversion/Intervention
(SBCS) $142,000 $142,000 $142,000 $142,000 $142,000 $710,000 Program Evaluation
(SANDAG) $63,000 $63,000 $63,000 $63,000 $63,000 $315,000 Financial Audit $0 $0 $0 $0 $25,000 $25,000
Travel & Training $24,606 $0 $0 $0 $0 $24,606
Level 3 Body Armor $40,000 $0 $0 $0 $0 $40,000
Enforcement Buy+Bust
Funds $1,000 $1,000 $1,000 $1,000 $1,000 $5,000
Vehicle Trackers &
Service $12,600 $600 $600 $600 $600 $15,000
Detective Vehicle
Maintenance $2,800 $2,800 $2,800 $2,800 $2,800 $14,000 Detective Vehicles (2) $136,000 $0 $0 $0 $0 $136,000 Covert Vehicle Camera
Car $30,950 $0 $0 $0 $0 $30,950
Evidence Van $55,000 $0 $0 $0 $0 $55,000
Indirect Costs $31,571 $32,460 $33,374 $34,316 $35,283 $167,004 TOTAL BSCC FUNDING $855,238 $566,456 $576,516 $586,871 $622,522 $3,207,603
Specifically, there is a current -year appropriation of $315,711 to the personnel category, $286,006 to the supplies and services category, $31,571 to the other category and $221,950 to the capital category of the fiscal year 2026-27 Police Grants section of the State Grants Fund. The funding from the BSCC will completely offset these costs, resulting in no net fiscal impact to the General Fund.
ONGOING FISCAL IMPACT
Because the grant period covers multiple fiscal years, subsequent budgets will include the remaining grant expenditures of $2,342,365 (Year 2 – Year 5), outlined in the chart above , as part of the annual budget process.
ATTACHMENTS
1. Agreement with BSCC for Proposition 64 Public Health & Safety Grant Program Cohort 3
2. Agreement with SBCS Corporation
3. Agreement with San Diego Association of Governments (SANDAG)
Staff Contact: Acting Chief of Police Dan Peak
Police Administrative Services Manager Jonathan Alegre