Item No. 4.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: SCOTT LOUGHNER, POLICE CHIEF
DATE: AUGUST 11, 2026
ACCEPTANCE OF STATE FUNDING FROM THE CANNABIS TAX FUND GRANT SUBJECT: PROGRAM
EXECUTIVE SUMMARY
The City Council will consider accepting $117,886 in Cannabis Tax Fund Grant Program (CTFGP) funds for Fiscal Year 2026-2027 from the State of California — Department of California Highway Patrol. This funding will support the Downey Police Department's ongoing traffic enforcement and education programs to help reduce the number of serious injuries and deaths on the roadways. The grant will also fund additional programs and resources, including alcohol and drug impaired driving enforcement, traffic enforcement, and public awareness and education.
RECOMMENDATION
That the City Council:
1. Accept a grant award from the State of California - Department of California Highway Patrol in the amount of $117,886 to purchase a DUI/DUID enforcement vehicle and conduct various selective traffic enforcement operations throughout the City of Downey; and,
2. Increase the Fiscal Year 2026-2027 Budget by $117,886 to account for these revenues and accompanying expenditures.
BACKGROUND
The State of California — Department of California Highway Patrol Cannabis Tax Fund Grant Program (CTFGP) funds selective traffic enforcement programs throughout California and provides financial assistance to police agencies for education, prevention, and the enforcement of laws related to driving under the influence of alcohol (DUI) and driving under the influence of drugs (DUID), including cannabis and cannabis products. The intent of the program is to educate the public regarding the dangers of impaired driving, enforce impaired driving laws on the roadway, and improve the organizations effectiveness through the training and development of new strategies. The goal is to reduce the number of victims killed and injured in crashes involving DUI/DUID.
ANALYSIS
The Downey Police Department works closely with CTFGP Coordinators to administer and coordinate operations for the grant. The State of California — Department of California Highway Patrol Cannabis Tax Fund Grant Program for 2026-2027 has the following eight (8) goals:
• Reduce the number of persons killed/injured in traffic collisions. • Reduce the number of persons killed/injured in alcohol -involved collisions.
• Reduce the number of persons killed/injured in drug -involved collisions. • Reduce the number of persons killed/injured in alcohol/drug combo -involved collisions. • Reduce the number of motorcyclists killed/injured in traffic collisions. • Reduce nighttime (9:00 p.m. - 2:59 a.m.) fatal/injury collisions. • Reduce the number of bicyclists killed/injured in traffic collisions • Reduce the number of pedestrians killed/injured in traffic collisions.
If accepted, the grant funding will be used on the following components:
1. Driving under the Influence (DUI) saturation patrol - $15,744
2. Education/Outreach - $800
3. DUI/DUID Patrol Vehicle (Outfitting included) - $101,342
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Quality of Life, Safety & Infrastructure
Public Engagement
FISCAL IMPACT
Approval of the recommended actions will result in a revenue increase and appropriation in the amount of $117,886 to the Special Revenue Fund, Police Department's revenue Account No. 10-3-5411 and Expenditure Account No. 10-4-2118-0030 for overtime ($16,544) and Account No.10-4-2118-0920 ($101,342) for the vehicle purchase/outfitting, for the Fiscal Year 2026-2027 Operating Budget.
Attachments
Attachment A: Cannabis Grant Agreement
State of California
DEPARTMENT OF CALIFORNIA HIGHWAY PATROL
GRANT AGREEMENT - Page 1
Award Number
30913
1. GRANT TITLE
FY26/27 CTFGP Law Enforcement - Downey PoliceDepartment
2. NAME OF ORGANIZATIONIAGENCY
Downey Police Department
3. ORGANIZATIONIAGENCY SECTION TO ADMINISTER GRANT
Downey Police/Patrol/Field Operations
4. PROJECT PERFORMANCE PERIOD
5. PURCHASE ORDER NUMBER
From.-07/01/2026 To:06/3012027
6. GRANT OPPORTUNITY INFORMATION DESCRIPT10N
Law Enforcement grants provide financial assistance to allied.agencies for the education, prevention, and the enforcement of laws related to driving under the influence of alcohol and other drugs, including cannabis and cannabis products.
The intent of the program is to educate the public regarding the dangers of impaired driving, enforce impaired driving laws on the roadway, and improve the Organization/Agency's effectiveness through training and development of new strategies.
7. FUNDS ALLOCATED UNDER THIS GRANT AGREEMENT SHALL NOT EXCEED $117,886.16
8. TERMS AND CONDITIONS
The Grantee agrees to complete the Project, as described in the Project Description. The Grantee's Grant Application, and the California Code of Regulations, Title 13,.Division 2, Chapter 13, Sections 1890.00-1890.27, are hereby incorporated into this Grant Agreement by reference,
The parties hereto agree to comply with the Terms and Conditions of the following attachments:
• Schedule A — Project Description, Problem Statement, Goals and Objectives, and Method of Procedure • Schedule B — Detailed Budget Estimate
• Schedule B-1 — Budget Narrative
We, the officials named below, hereby swear, under penalty of perjury under the laws of the State of California, that we are duly authorized to legally bind the Grant recipient to the above -described Grant Terms and Conditions.
IN WITNESS WHEREOF, xhis Grant Agreement is executed by the parties hereto.
9. APPROVAL SIGNATURES
A.
AUTHORIZED OFFICIAL OF ORGANIZATIONIAGENCY
B. AUTHORIZED OFFICIAL OF CHP
Name: Scott Loughner
Name: Elliotte Johnson Phone: (916) 843-4360
Title: Chief of Police
Title: Captain Fax: (916) 322-3169
Phone: (562) 904-2301
Address: 10911 Brookshire Avenue
Address: 601 North 7th Street
Downey, California 90241
Sacramento, CA 95811
E-Mail: SLou hner owneyca.org
E-Mail: [email protected]
A r
{ e) (mate)
(Signature) (Date)
C.
ACCOUNTING OFFICER OF CHP
10. ;AUTHORIZED FINANCIAL CONTACT TO RECEIVE
Name: M. V. Fojas Phone: (916) 843-3531
REIMBURSEMENT PAYMENTS
Title: Commander Fax: (916) 322-3159
Name: Marlon Ramirez
Address: 601 North 7th Street
Title: Finance Director
Sacramento, CA 95811
Phone: (562) 904-2301
E-Mail: Michelle [email protected]:gov
Address: 11111 Brookshire Avenue
Downey, CA 90241
(Signature) (Date)
TERMS AND CONDITIONS
C. PROJECT TERMINATION
1. Grantee or the State may terminate this Grant Agreement at anytime prior to the commencement of the Project. Once the Project has commenced, this Grant Agreement may only be terminated if the party withdrawing provides thirty (30) calendar days written notice of their intent to withdraw.
a. If by reason of force majeure the performance hereunder is delayed or prevented, then the term end date may be extended by mutual consent for the same amount of time of such delay or prevention. The term. "force majeure" shall mean any fire, flood, earthquake, or public disaster, strike, labor dispute or,unrest, embargo, riot, war, insurrection or civil unrest, any act of God, any act of legally constituted .authority, or any other cause beyond the Grantee's control which would excuse the Grantee's performance as a matter of law. b. Grantee agrees to provide written notice of an event of force majeure under this Grant Agreement within ten (10) calendar days of the commencement of such event, and within ten (10) calendar days after the termination of such event, unless the force majeure prohibits Grantee from reasonably giving notice within this period. Grantee will give such notice at the earliest possible time following the event of force majeure.
Any violations of law committed by the Grantee, misrepresentations of Project information by the Grantee to the State, submission of falsified documents by the Grantee to the State, or failure to provide records by the Grantee to the State when requested for audit or site visit purposes may be cause for termination. If the Project is terminated for the reasons described in this paragraph, the State will have no obligation to reimburse the Grantee for any additional costs once the Grant Agreement has been terminated.
3. The State may terminate this Grant Agreement and be relieved of any payments should the Grantee fail to perform the requirements of this Grant Agreement at the time and in the manner herein provided. furthermore, the Grantee, upon termination, shall return grant funds not expended by the Grantee as of the date of termination.
4. If this Grant Agreement is terminated, the State may choose to exclude the Grantee from future Grant Opportunities.
D. FINANCIAL RECORDS
The Grantee agrees the State, ° or their designated representative, shall have the right to review and to copy all records.and supporting documentation pertaining to the performance of this Grant Agreement. Grantee agrees to -maintain such records for possible audit for a minimum of five (5) years after final payment, unless a longer period of records retention is stipulated or required by law. Grantee agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of arty employees who might reasonably have information related to such records. Furthermore, the Grantee agrees to include a similar right for the State to audit all records and interview staff in any subcontract related to performance of this Grant Agreement.
E. HOLD HARMLESS
The Grantee agrees to indemnify, defend, and save harmless the State, its officials, agents and employees from any and all claims and losses accruing or resulting to any and all Grantee's staff, contractors, subcontractors, suppliers, and other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Grant Agreement, ° and from,artyand afl',claimsandlosses -accruing or resulting to any person, agency, firm, corporation who may be injured or damaged by the Grantee in performance of this Grant Agreement.
TERMS AND CONDITIONS
J. LABOR CODEIWORKERS' COMPENSATION
1. The Grantee is advised and made aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of,the work of this Grant Agreement, (refer to Labor Code Section 3700).
K. GRANT APPLICATION INCORPORATION
1. The Grantee agrees .the Grant Application -and•any subsequent changes or additions approved or required by the State is hereby incorporated into this Grant Agreement.
L. STATE LOBBYING
The Grantee is advised that none of the funds. provided under this Grant Agreement may be used for any activity specifically designed to urge or influence a state or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any state or local legislative body. Such activities include both direct and indirect (e.g., "grassroots") lobbying activities, with one exception. This does not preclude a state official, whose salary is supported by this Grant Agreement, from engaging in direct communications with the state or local legislative officials, in accordance with customary state and/or local practice.
M. REPRESENTATION AND WARRANTIES
1. The Grantee represents and warrants that:
a. It is validly existing and in good standing under the laws of the State of California, has, or will have the requisite power, authority, licenses., permits, and the like necessary to carry on its business as -it is now being conducted and as contemplated in this Grant Agreement, and will, at all tunes, lawfully conduct its business in compliance with all applicable federal, state, and local laws, regulations,; and rules.
b. It is not a party to any Grant Agreement, written or oral, creating obligations that would prevent it from entering into this Grant Agreement or satisfying the terms herein. c. If the Grantee is a Nonprofit OrganizationlAgency, it will maintain its "Active" status with the California Secretary of State, maintain its "Current" status with the California Attorney General's Registry of Charitable Trusts, and maintain its federal and State of California tax- exempt status. If the Grantee subcontracts with a Nonprofit as part of this Grant Agreement, the Grantee shall ensure the Nonprofit will maintain its "Active" status with the California Secretary of State, maintain its "Current" status with the California Attorney General's Registry of Charitable Trusts, .and maintain its federal and State of California tax-exempt status.
d. All of the information in its Grant Application and all materials submitted are true and accurate.
N. AIR OR WATER POLLUTION VIOLATION
1. Under the state laws, the Grantee.shalMot be: (1)in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution.
TERMS AND CONDITIONS
participating in any activity related to this Grant Agreement. For the duration of this Grant Agreement, the Organization/Agency and its employees will not accept any gift, benefit, gratuity or consideration, or begin a personal or financial interest in a party who is associated with this Grant Agreement.
5. The Grantee Organization/Agency and its employees shall not disclose any financial, statistical, personal, technical, media -related, and/or other information or data derived from this Grant Agreement, made available for use by the State, for the purposes of providing services to the State, in conjunction with this Grant Agreement, except as otherwise required by law or explicitly permitted by the State in writing. The Grantee shall -imm+ediately advise the State of any person(s) who has access to confidential Projedt information and intends to disclose that information in violation of this Grant Agreement,
6. The Grantee will not enter into any Grant Agreement or discussions with third parties concerning materials described in paragraph five (5) prior to receiving written confirmation from the State that such third party, has a Grant Agreement with the State, similar in nature to this one.
7. The Grantee warrants that only those employees who are authorized and required to use the materials described in paragraph 5 will have access to them. & If the Grantee violates any provisions in the above paragraphs, such action by the Grantee shall render this Grant Agreement void.
T. EQUIPMENT -USE TERMS
1. The Grantee agrees:any equipment: purchased under this Grant Agreement shall be used for impaired driving efforts.
2. Law Enforcement. Projects:
a. Oral Fluid Drug Screening Devices and Cannabis/Marijuana Breath Testing Equipment - The Grantee agrees to ensure all personnel using road -side drug testing equipment, including oral fluid drug testing devices and/or cannabis/marijuana breath testing devices, purchased with grant funds from this Grant Agreement, are trained to recognize alcohol and drug impairment.
At a minimum, personnel using these devices should receive Standardized Field Sobriety Testing training. These personnel are also encouraged to attend Advanced Roadside Impaired Driving Enforcement and Drug Recognition Evaluator training. Prior to using these devices, the Grantee agrees to obtain {permission from their local prosecutor's office, establish a policy ensuring..appropriate use, and require the staff using these devices to receive appropriate training, which may'include training from the manufacturer. This will help ensure the equipment is used appropriately. The Grantee shall advise the State (California Highway Patrol,, Impaired Driving Section, Cannabis Grants Unit) of any legal challenges or other items of'.signiflcance that may affect the use or legal acceptance of these devices.
Additionally, the State may request additional information about the performance of these devices, including information about their use, accuracy, and feedback from personnel using the devices.
b. Law Enforcement Vehicles — The Grantee agrees any law enforcement vehicles purchased with Grant funds, from this Grant Agreement, will be primarily used for the enforcement of driving under the influence laws and/or providing public education, related to the dangers of driving under the influence. Additionally, any vehicle purchased using funds from this Grant Agreement shall,tomply with ail California Vehicle Code and California Code of Regulation requirements. The State may require the Grantee to mark these vehicles with a decal and/or emblem, indicating the vehicle is used for driving under the influence enforcement.
Schedule A
Project Performance Evaluation
1. Prepare and submit invoice claims (due September 30, December 30, March 30, and June 30)
2. Prepare and submit Quarterly Performance Reports (QPR) due September 30, December 30, March 30, and June 30)
• Collect and report appropriate data quarterly that supports the progress of goals and objectives.
Provide a brief list of activity conducted, procurement of grant -funded items, and significant media activities.
• Include status of grant -funded personnel, status of contracts, challenges, or special accomplishments.
• Provide a brief summary of quarterly accomplishments and explanations for objectives not completed or plans for upcoming activities.
• Collect, analyze and report statistical data relating to the grant goals and objectives.
Program Sustainability
Four -Step Strategy to Reduce Reliance on Future Grant Funding Step 1: Institutionalize Grant -Funded Practices
Successful grant -funded strategies will be evaluated and integrated into standard operating procedures.
Training, enforcement methods, data collection, and public education efforts proven to reduce collisions and injuries will become part of routine departmental operations. This ensures that safety gains continue even after external funding ends.
Step 2: Reallocate and Optimize Existing Resources
As grant funding sunsets, personnel time, equipment, and operational focus will be strategically reallocated to sustain high -impact traffic safety activities. Deployment will be guided by collision data to ensure resources are concentrated in problem areas without requiring additional funding. Efficiencies gained during the grant period will reduce long-term costs.
Step 3: Leverage Partnerships and Shared Resources
The agency will strengthen partnerships with regional law enforcement agencies, public works, schools, and community organizations to share resources, coordinate enforcement and education efforts, and reduce duplication. Joint operations and collaborative outreach will allow continued impact with minimal financial burden.
Step 4: Build Long -Term Financial Sustainability
The department will pursue incorporation of essential traffic safety costs into the regular operating budget and explore alternative funding sources such as cost recovery, asset forfeiture where appropriate, and local funding allocations. Grant funds will be used strategically for start-up and enhancement, not long-term dependency.
Administrative Support
The Department has a proven record of successfully administering and serving as the grant holder for Office of Traffic Safety (OTS), Alcoholic Beverage Control (ABC), and Tobacco grants. Strong administrative oversight, experienced personnel, and established internal controls ensure all grant requirements are met within the Project Performance Period. Dedicated supervisory and fiscal staff provide ongoing monitoring, reporting, and compliance, while sworn personnel are effectively deployed to carry out grant -funded activities.
The Department's existing facilities, equipment, and technological resources further support efficient project implementation, demonstrating the capacity to manage grant funding responsibly and achieve measurable outcomes.
Schedule B-1
Budget Narrative
'Downey Police Department
Prior to engaging in grant -funded Saturation Patrols, DUI Checkpoints, or other enforcement activities in areas where the grantee does not have primary traffic jurisdiction, the grantee should consult with the agency having primary traffic jurisdiction.
Personnel
DUI Saturation Patrol
$15,744.00
16 DUI Saturation Patrols (6 -hours each). 96 Total hours x $4100 an hour (highest hourly rate) = Total cost $3,936.00. (4) Officers per operation /(16) Total operations. Total Operations costs= $15,744.00. Sergeant OT rate with benefits $80-$100 per hour, Officer OT rate with benefits $60-$80 per hour.
Education/Outreach
$800.00
4 Educational Presentations to Citizen's and Youth Academies and Neighborhood Watch meetings. Sergeant OT rate with benefits $80-$100 per hour, Officer OT rate with benefits $60-$80 per hour. 1 hour per event, 2 Officers per event., 4 events, 8 Total hours x $100 an hour (highest hourly rate) = Total cost $800.00.
Equipment
DUI Patrol Vehicle (includes Outfitting & Decals)
$101,342.16
DUI/DUID Enforcement Patrol Vehicle: 1@ $55,716.20 + Outfitting $45,625.96 = $101,342.16 for DUIIDUID Saturation patrols & enforcement! 16 Total patrols (4 each quarter 14 officers per operation)