La Verne City Council
November 4, 2024

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46 FY 2023 HSGP NOFO Back to the Top
and performance system accessible through the System for Award Management (SAM), which is currently the Federal Awardee Performance and Integrity Information System (FAPIIS).
ii. An applicant, at its option, may review information in FAPIIS and comment on any information about itself that a federal awarding agency previously entered.
iii. FEMA will consider any comments by the applicant, in addition to the other information in FAPIIS, in making a judgment about the applicant’s integrity, business ethics, and record of performance under federal awards when completing the review of risk posed by applicants as described in 2 C.F.R. § 200.206.

2. Review and Selection Process
a. SHSP and UASI
All proposed investments will undergo a federal review by DHS/FEMA to verify compliance with all administrative and eligibility criteria identified in the NOFO. The federal review will be conducted by FEMA HQ Preparedness Officers. FEMA HQ Preparedness Officers will use a checklist to verify compliance with all administrative and eligibility criteria identified in the NOFO. Recipients must be able to demonstrate how investments support building capability and/or closing capability gaps or sustaining capabilities identified in the THIRA/SPR process. IJs will be reviewed at both the investment and project level.

Emergency communications investments will be jointly reviewed by FEMA and CISA’s Emergency Communications Division (ECD) to verify compliance with SAFECOM Guidance on Emergency Communications Grants (SAFECOM Guidance). FEMA and ECD will coordinate directly with the recipient on any compliance concerns and will provide technical assistance as necessary to help ensure full compliance.

Additional Effectiveness Evaluation Criteria for the National Priority Areas FEMA will evaluate the FY 2023 HSGP IJs and projects submitted in support of the National Priority Areas for anticipated effectiveness. FEMA’s review will include verification that each IJ or project meets the National Priority Area required spend percentages.

Cybersecurity investments will be reviewed by DHS/FEMA, CISA, and other DHS components as appropriate, for compliance with purposes and requirements of the priority investment area. Proposed investments will be reviewed for effectiveness using the criteria set forth in this NOFO.

Soft Targets/Crowded Places investments will be reviewed by DHS/FEMA, CISA, and other DHS components as appropriate, for compliance with purposes and requirements of the priority investment area. Proposed investments will be reviewed for effectiveness using the criteria set forth in this NOFO.

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Information Sharing and Cooperation Investments will be reviewed by DHS/FEMA, DHS Office of Intelligence and Analysis, and other DHS components as appropriate, for compliance with purposes and requirements of the priority investment area. Proposed investments will be reviewed for effectiveness using the criteria set forth in this NOFO.

For additional information on Fusion Center requirements, please see the Preparedness Grants Manual.

Domestic violent extremism investments will be reviewed by DHS/FEMA, DHS Office of Intelligence and Analysis, DHS Center for Prevention Programs and Partnerships, and other DHS components as appropriate, for compliance with purposes and requirements of the priority investment area. Proposed investments will be reviewed for effectiveness using the scoring criteria set forth in this NOFO.

Community preparedness and resilience investments will be reviewed by DHS/FEMA and other DHS components as appropriate, for compliance with purposes and requirements of the priority investment area. Proposed investments will be reviewed for effectiveness using the scoring criteria set forth in this NOFO.

Election security investments will be reviewed by DHS/FEMA, CISA, and other DHS components as appropriate, for compliance with purposes and requirements of the priority investment area. Proposed investments will be reviewed for effectiveness using the scoring criteria set forth in this NOFO.

FEMA will determine whether the proposed approach is clear, logical, and reasonable to address the priority areas of interest and contribute to a culture of national preparedness.

This includes factors such as the objectives and strategies proposed to address the priority area, how the objectives and strategies overcome legal, political, or practical obstacles to reduce overall risk, the process, and criteria to select additional relevant projects, and the approach to monitor awards to satisfy the funding percentage allocations.

For applicants that elect to submit IJs and project-level details for the National Priority Areas at the time of application, effectiveness will be evaluated prior to award. If the projects are found to not sufficiently align with the National Priority Area(s), applicants may have funds placed on hold (up to 30%) until the projects are revised to satisfactorily address the National Priority Areas.

For applicants that elect to submit IJs and project-level details for the National Priority Areas as part of the December 2023 BSIR, they will have funds placed on hold in the amount of 30%. The hold will be released only after their December 2023 BSIR submission has been reviewed, and projects related to the National Priority Areas deemed in alignment by DHS/FEMA.

SAAs are still required to meet pass-through requirements even if funds are on hold related to the National Priority Areas.

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To that end, IJs should include:

How the proposed investment addresses the National Priority Area; An explanation of how the proposed projects were selected and will achieve objectives and strategies to build or sustain the core capability gaps identified in the SPR, including expected long-term impact where applicable; and A summary of the collaboration efforts to prevent, prepare for, protect against, and respond to acts of terrorism as well as anticipated outcomes of the project.

For FY 2023 SHSP and UASI investments and projects related to the National Priority Areas, effectiveness will be evaluated based on the following four factors:

Investment Strategy (40%): Proposals will be evaluated based on the quality and extent to which applicants describe an effective strategy that demonstrates that proposed projects support the program objective of preventing, preparing for, protecting against, and responding to acts of terrorism, to meet its target capabilities, and otherwise reduce the overall risk to the high-risk urban area, the state, or the Nation.

Budget (20%): Proposals will be evaluated based on the extent to which applicants describe a budget plan for each investment demonstrating how the applicant will maximize cost effectiveness of grant expenditures.

Impact/Outcomes (40%): Proposals will be evaluated on how the investment helps the jurisdiction close capability gaps identified in its SPR and addresses the relevant National Priority Area outlined in this NOFO. Further, proposals will be evaluated on their identification and estimated improvement of core capability(ies), the associated standardized target(s) that align with their proposed investment, and the ways in which the applicant will measure and/or evaluate improvement.

Past Performance (additional consideration): Proposals will be evaluated based on the applicants demonstrated capability to execute the proposed investments. In evaluating applicants under this factor FEMA will consider the information provided by the applicant and may also consider relevant information from other sources. b. OPSG
Applications will be reviewed by the SAA and USBP Sector Headquarters for completeness and adherence to programmatic guidelines and evaluated for anticipated feasibility, need, and impact of the Operations Orders. For more information on Operations Orders and other requirements of OPSG, see the Preparedness Grants Manual.

DHS/FEMA will verify compliance with all administrative and eligibility criteria identified in the NOFO and required submission of Operations Orders and Inventory of Operations Orders by the established due dates. DHS/FEMA and USBP will use the results of both the risk analysis and the federal review by DHS/FEMA to make recommendations for funding to the Secretary of Homeland Security.

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FY 2023 OPSG funds will be allocated among the eligible jurisdictions based on risk-based prioritization using the OPSG Risk Assessment described above. Final funding allocations are determined by the Secretary of Homeland Security, who may consider information and input from various law enforcement offices or subject-matter experts within the Department.

Factors considered include, but are not limited to threat, vulnerability, miles of the border, and other border-specific law enforcement intelligence, as well as the feasibility of FY 2023 Operations Orders to designated localities within border states and territories.

F. Federal Award Administration Information

1. Notice of Award
Before accepting the award, the AOR and recipient should carefully read the award package.

The award package includes instructions on administering the grant award and the terms and conditions associated with responsibilities under federal awards. Recipients must accept all conditions in this NOFO and the Preparedness Grants Manual as well as any specific terms and conditions in the Notice of Award to receive an award under this program.

Recipients must accept their awards no later than 60 days from the award date. The recipient shall notify FEMA of its intent to accept and proceed with work under the award or provide a notice of intent to decline through the ND Grants system. For instructions on how to accept or decline an award in the ND Grants system, please see the ND Grants Grant Recipient User Guide, which is available at Non-Disaster Grants Management System | FEMA.gov along with other ND Grants materials.

Funds will remain on hold until the recipient accepts the award through the ND Grants system and all other conditions of the award have been satisfied or until the award is otherwise rescinded. Failure to accept a grant award within the 60-day timeframe may result in a loss of funds.

See the Preparedness Grants Manual for information on Notice of Award.

2. Pass-Through Requirements
Awards made to the SAA for HSGP carry additional statutorily mandated pass-through requirements. Pass-through is defined as an obligation on the part of the SAA to make funds available to local units of government, combinations of local units, tribal governments, or other specific groups or organizations. These entities are defined at 6 U.S.C. § 101(13) as:

A county, municipality, city, town, township, local public authority, school district, special district, intrastate district, council of governments (regardless of whether the council of governments is incorporated as a nonprofit corporation under State law), regional or interstate government entity, or agency or instrumentality of a local government.

An Indian tribe or authorized tribal organization, or in Alaska a Native village or Alaska Regional Native Corporation.

A rural community, unincorporated town or village, or other public entity.

Four criteria must be met to pass-through grant funds:

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The SAA must make a firm written commitment to passing through grant funds to subrecipients;
The SAA’s commitment must be unconditional (i.e., no contingencies for the availability of SAA funds);
There must be documentary evidence (i.e., award document, terms, and conditions) of the commitment; and
The award terms must be communicated to the subrecipient.

Timing and Amount
The SAA must pass-through at least 80% of the funds awarded under SHSP and UASI to the above-defined local or tribal units of government within 45 calendar days of receipt of the funds. “Receipt of the funds” occurs either when the SAA accepts the award or 15 calendar days after the SAA receives notice of the award, whichever is earlier.

SAAs are sent notification of HSGP awards via the GPD’s ND Grants system. If an SAA accepts its award within 15 calendar days of receiving notice of the award in the ND Grants system, the 45 calendar days pass-through period will start on the date the SAA accepted the award. Should an SAA not accept the HSGP award within 15 calendar days of receiving notice of the award in the ND Grants system, the 45 calendar days pass-through period will begin 15 calendar days after the award notification is sent to the SAA via the ND Grants system.

It is important to note that the period of performance start date does not directly affect the start of the 45 calendar days pass-through period. For example, an SAA may receive notice of the HSGP award on August 25, 2023, while the period of performance dates for that award September 1, 2023, through August 31, 2026. In this example, the 45-day pass- through period will begin on the date the SAA accepts the HSGP award or September 9, 2023 (15 calendar days after the SAA was notified of the award), whichever date occurs first. The period of performance start date of September 1, 2023 would not affect the timing of meeting the 45-calendar day pass-through requirement.

Other SHSP and UASI Pass-Through Requirements
The signatory authority of the SAA must certify in writing to DHS/FEMA that pass-through requirements have been met. A letter of intent (or equivalent) to distribute funds is not considered sufficient. A letter of intent is not a firm commitment and if issued before FEMA makes the award, then a letter of intent is also not unconditional since it is inherently conditioned on receipt of funds.

The pass-through requirement does not apply to SHSP awards made to the District of Columbia, Guam, American Samoa, the U.S. Virgin Islands, or the Commonwealth of the Northern Mariana Islands. The Commonwealth of Puerto Rico is required to comply with the pass-through requirement, and its SAA must also obligate at least 80% of the funds to local units of government within 45 calendar days of receipt of the funds.

Under SHSP, the SAA may retain more than 20% of funding for expenditures made by the

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state on behalf of the local unit(s) of government, such as expenditures by the state in order to pass through goods or services to local unit(s) of government in lieu of cash. This may occur only with the written consent, such as a Memorandum of Understanding, between the SAA and the local unit(s) of government. Separate written consent is necessary for each local unit of government in which more than 20% of funding is retained on their behalf by the state. The written consent must specify the amount of funds to be retained and the intended use of funds, including whether any goods or services will be passed through in lieu of cash. It must also be signed by authorized representatives of both the state and the local unit of government.

States shall review their written consent agreements yearly and ensure that they are still valid. If a written consent agreement is already in place from previous fiscal years, DHS/FEMA will continue to recognize it for FY 2023, unless the written consent review indicates the local government is no longer in agreement. If modifications to the existing agreement are necessary, the SAA should contact their assigned FEMA HQ Preparedness Officer.

However, even if a written consent agreement is in place from previous fiscal years, the SAA must still initially carry out the pass-through documentation for its FY 2023 award and comply with the four pass-through criteria described above before the written consent agreement can take effect for purposes of the FY 2023 funding.

Additional OPSG Requirements
The recipient is prohibited from obligating or expending funds provided through this award until each unique and specific county-level or equivalent Operational Order/Fragmentary Operations Order budget has been reviewed and approved through an official electronic mail notice issued by DHS/FEMA removing this special programmatic condition.

3. Administrative and National Policy Requirements
In addition to the requirements of in this section and in this NOFO, FEMA may place specific terms and conditions on individual awards in accordance with 2 C.F.R. Part 200.

In addition to the information regarding DHS Standard Terms and Conditions and Ensuring the Protection of Civil Rights, see the Preparedness Grants Manual for additional information on administrative and national policy requirements, including:

EHP Compliance;
FirstNet;
NIMS Implementation; and
SAFECOM Guidance.
a. DHS Standard Terms and Conditions
All successful applicants for DHS grant and cooperative agreements are required to comply with DHS Standard Terms and Conditions, which are available online at: DHS Standard Terms and Conditions.

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The applicable DHS Standard Terms and Conditions will be those in effect at the time the award was made. What terms and conditions will apply for the award will be clearly stated in the award package at the time of award.
b. Ensuring the Protection of Civil Rights
As the Nation works towards achieving the National Preparedness Goal, it is important to continue to protect the civil rights of individuals. Recipients and subrecipients must carry out their programs and activities, including those related to the building, sustainment, and delivery of core capabilities, in a manner that respects and ensures the protection of civil rights for protected populations.

Federal civil rights statutes, such as Section 504 of the Rehabilitation Act of 1973 and Title VI of the Civil Rights Act of 1964, along with DHS and FEMA regulations, prohibit discrimination on the basis of race, color, national origin, sex, religion, age, disability, limited English proficiency, or economic status in connection with programs and activities receiving federal financial assistance from FEMA.

The DHS Standard Terms and Conditions include a fuller list of the civil rights provisions that apply to recipients. These terms and conditions can be found in the DHS Standard Terms and Conditions. Additional information on civil rights provisions is available at External Civil Rights Division | FEMA.gov.

Monitoring and oversight requirements in connection with recipient compliance with federal civil rights laws are also authorized pursuant to 44 C.F.R. Part 7.

In accordance with civil rights laws and regulations, recipients and subrecipients must ensure the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment. c. Environmental Planning and Historic Preservation (EHP) Compliance As a federal agency, FEMA is required to consider the effects of its actions on the environment and historic properties to ensure that all activities and programs funded by FEMA, including grant-funded projects, comply with federal EHP laws, Executive Orders, regulations, and policies, as applicable.

All non-critical new construction or substantial improvement of structures in a Special Flood Hazard Area must, at a minimum, apply the flood elevations of the Federal Flood Risk Management Standard’s Freeboard Value Approach unless doing so would cause the project to be unable to meet applicable program cost-effectiveness requirements. All other types of projects may choose to apply the flood elevations of the Federal Flood Risk Management Standard’s Freeboard Value Approach. See Executive Order (EO) 14030, Climate-Related Financial Risk and FEMA Policy #-206-21-0003, Partial Implementation of the Federal Flood Risk Management Standard for Hazard Mitigation Assistance Programs (Interim) (fema.gov).

All GPD actions, including grant-funded actions, must comply with National Flood Insurance Program criteria or any more restrictive federal, state, or local floodplain

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management standards or building code (44 CFR § 9.11(d)(6)). All GPD-funded non-critical actions in 1% annual chance floodplains (also known as 100-year floodplains) that involve new construction or substantial improvement of structures must be elevated, at a minimum, to the lower of:

Two feet above the 1% annual chance flood elevation (also known as the base flood elevation), in accordance with the Federal Flood Risk Management Standard (FFRMS) “Freeboard Value Approach” (FVA); or
The 0.2% annual chance flood elevation. Where 0.2% annual chance flood elevations are not available, such actions must be elevated to at least two feet above the 1% annual chance flood elevation.

All GPD-funded critical actions in 0.2% annual chance floodplains (also known as 500-year floodplains) that involve new construction or substantial improvement of structures must be elevated, at a minimum, to the higher of:

Three feet above the 1% annual chance flood elevation; or The 0.2% annual chance flood elevation. Where 0.2% annual chance flood elevations are not available, such actions must be elevated to at least three feet above the 1% annual chance flood elevation.

See EO 11988, Floodplain Management, as amended by EO 13690, Establishing a Federal Flood Risk Management Standard and a Process for Further Soliciting and Considering Stakeholder Input.

Recipients and subrecipients proposing projects that have the potential to impact the environment, including, but not limited to, the construction of communication towers, modification or renovation of existing buildings, structures, and facilities, or new construction including replacement of facilities, must participate in the FEMA EHP review process. The EHP review process involves the submission of a detailed project description along with any supporting documentation requested by FEMA in order to determine whether the proposed project has the potential to impact environmental resources or historic properties.

In some cases, FEMA is also required to consult with other regulatory agencies and the public in order to complete the review process. Federal law requires EHP review to be completed before federal funds are released to carry out proposed projects. FEMA may not be able to fund projects that are not incompliance with applicable EHP laws, Executive Orders, regulations, and policies.

DHS and FEMA EHP policy is found in directives and instructions available on the FEMA.gov EHP page, the FEMA website page that includes documents regarding EHP responsibilities and program requirements, including implementation of the National Environmental Policy Act and other EHP regulations and Executive Orders.

The GPD EHP screening form is located at FEMA Form. Additionally, all recipients under this funding opportunity are required to comply with the FEMA GPD EHP Policy Guidance, FEMA Policy #108-023-1.

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d. National Incident Management System (NIMS) Implementation In expending funds under this program, recipients that are state, local, tribal, or territorial governments must ensure and maintain adoption and implementation of NIMS. The state, local, tribal, or territorial government must show adoption of NIMS during any point of the period of performance. The list of objectives used for progress and achievement reporting is at https://www.fema.gov/emergency-managers/nims/implementation-training.

Emergency management and incident response activities require carefully managed resources (personnel, teams, facilities, equipment, and/or supplies) to meet incident needs. Using standardized resource management concepts such as typing, credentialing, and inventorying, promote a strong national mutual aid capability needed to support delivery of core capabilities. Additional information on resource management, NIMS resource typing definitions, job titles, and position qualifications is on FEMA’s website at NIMS Components - Guidance and Tools | FEMA.gov.

FEMA developed the National Incident Management System Guideline for the National Qualification System to describe national credentialing standards and to provide written guidance regarding the use of those standards. This guideline describes credentialing and typing processes and identifies tools which Federal Emergency Response Officials and emergency managers at all levels of government may use both routinely and to facilitate multijurisdictional coordinated responses.

Although state, local, tribal, and private sector partners (including nongovernmental organizations) are not required to credential their personnel in accordance with these guidelines, FEMA strongly encourages them to do so to leverage the federal investment in the Federal Information Processing Standards 201 infrastructure and to facilitate interoperability for personnel deployed outside their home jurisdiction.

Additional information about NIMS in general is available at National Incident Management System | FEMA.gov.
e. Emergency Communications Investments
If an entity uses HSGP funding to support emergency communications investments, the following requirements shall apply to all such grant-funded communications investments in support of the emergency communications priorities and recognized best practices:

The signatory authority for the SAA must certify in writing to DHS/FEMA their compliance with the SAFECOM Guidance. The certification letter should be coordinated with the SWIC for each state and must be uploaded to ND Grants at the time of the first Program Performance Report submission.

All states and territories must designate a full-time SWIC who has the authority and resources to actively improve interoperability with emergency management and response agencies across all levels of government, to include establishing statewide plans, policies, and procedures, and coordinating decisions on communications investments funded through federal grants. Note that the designated full-time SWIC may also be the state’s or territory’s cybersecurity point of contact. SWIC status

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information will be maintained by CISA and will be verified by FEMA GPD through programmatic monitoring activities.

By the period of performance end date, all states and territories must update the SCIP, with a focus on communications resilience/continuity, to include assessment and mitigation of all potential risks identified in the SCIP: natural disasters, accidental damage (human failures), intentional damage (sabotage, terrorism), cybersecurity, etc. Following the initial update, the SCIP should be updated on an annual basis.

SCIP status information will be maintained by CISA and will be verified by FEMA GPD through programmatic monitoring activities.

All states and territories must test their emergency communications capabilities and procedures (as outlined in their operational communications plans) in conjunction with regularly planned exercises (separate/addition emergency communications exercises are not required). Exercises should be used to both demonstrate and validate skills learned in training and to identify gaps in capabilities. Resilience and continuity of communications should be tested during training and exercises to the greatest extent possible. Further, exercises should include participants from multiple jurisdictions, disciplines, and levels of government and include emergency management, emergency medical services, law enforcement, interoperability coordinators, public health officials, hospital officials, officials from colleges and universities, and other disciplines and private sector entities, as appropriate. Findings from exercises should be used to update programs to address gaps in emergency communications as well as emerging technologies, policies, and partners.

Recipients are encouraged to increase awareness and availability of emergency communications exercise opportunities across all levels of government.

States, territories, and other eligible grant recipients are advised that HSGP funding may be used to support communications planning (including the cost of hiring a SWIC, participation in governance bodies and requirements delineated above), training, exercises, and equipment costs. Costs for transitioning to the FirstNet network may also be eligible.

More information regarding FirstNet can be found in the Preparedness Grants Manual.

4. Reporting
Recipients are required to submit various financial and programmatic reports as a condition of award acceptance. Future awards and funds drawdown may be withheld if these reports are delinquent.

See the Preparedness Grants Manual for information on reporting requirements.

5. Monitoring and Oversight
Per 2 C.F.R. § 200.337, FEMA, through its authorized representatives, has the right, at all reasonable times, to make site visits or conduct desk reviews to review project accomplishments and management control systems to review award progress and to provide any required technical assistance. During site visits or desk reviews, FEMA will review recipients’ files related to the award. As part of any monitoring and program evaluation activities, recipients must permit FEMA, upon reasonable notice, to review grant-related records and to interview the organization’s staff and contractors regarding the program.

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Recipients must respond in a timely and accurate manner to FEMA requests for information relating to the award. Failure to respond in this manner may result in funding holds on current and future awards until the requested information is provided.

See the Preparedness Grants Manual for information on monitoring and oversight.

G. DHS Awarding Agency Contact Information

1. Contact and Resource Information
a. Program Office Contact
FEMA has assigned state-specific Preparedness Officers for the HSGP. If you do not know your Preparedness Officer, please contact the Centralized Scheduling and Information Desk (CSID) by phone at (800) 368-6498 or by email at [email protected], Monday through Friday, 9:00 AM – 5:00 PM ET.
b. Centralized Scheduling and Information Desk (CSID)
CSID is a non-emergency comprehensive management and information resource developed by FEMA for grants stakeholders. CSID provides general information on all FEMA grant programs and maintains a comprehensive database containing key personnel contact information at the federal, state, and local levels. When necessary, recipients will be directed to a federal point of contact who can answer specific programmatic questions or concerns.

CSID can be reached by phone at (800) 368-6498 or by e-mail at [email protected], Monday through Friday, 9:00 AM – 5:00 PM ET.
c. Grant Programs Directorate (GPD) Award Administration Division GPD’s Award Administration Division (AAD) provides support regarding financial matters and budgetary technical assistance. Additional guidance and information can be obtained by contacting the AAD’s Help Desk via e-mail at [email protected]. d. Equal Rights
The FEMA Office of Equal Rights (OER) is responsible for compliance with and enforcement of federal civil rights obligations in connection with programs and services conducted by FEMA and recipients of FEMA financial assistance. All inquiries and communications about federal civil rights compliance for FEMA grants under this NOFO should be sent to [email protected].
e. Environmental Planning and Historic Preservation
GPD’s EHP Team provides guidance and information about the EHP review process to recipients and subrecipients. All inquiries and communications about GPD projects under this NOFO or the EHP review process, including the submittal of EHP review materials, should be sent to [email protected].

2. Systems Information
a. Grants.gov
For technical assistance with Grants.gov, call the customer support hotline 24 hours per day, 7 days per week (except federal holidays) at (800) 518-4726 or e-mail at [email protected].

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b. Non-Disaster (ND) Grants
For technical assistance with the ND Grants system, please contact the ND Grants Helpdesk at [email protected] or (800) 865-4076, Monday through Friday, 9:00 AM – 6:00 PM ET. User resources are available at Non-Disaster Grants Management System | FEMA.gov. c. Payment and Reporting System (PARS)
FEMA uses the Payment and Reporting System (PARS) for financial reporting, invoicing, and tracking payments. FEMA uses the Direct Deposit/Electronic Funds Transfer (DD/EFT) method of payment to recipients. To enroll in the DD/EFT, recipients must complete a Standard Form 1199A, Direct Deposit Form. If you have questions about the online system, please call the Customer Service Center at (866) 927-5646 or email ask- [email protected].

H. Additional Information
GPD has developed the Preparedness Grants Manual to guide applicants and recipients of grant funding on how to manage their grants and other resources. Recipients seeking guidance on policies and procedures for managing preparedness grants should reference the Preparedness Grants Manual for further information. Examples of information contained in the Preparedness Grants Manual include:

Actions to Address Noncompliance
Audits
Case Studies and Use of Grant-Funded Resources During Real-World Incident Operations
Community Lifelines
Conflicts of Interest in the Administration of Federal Awards and Subawards Disability Integration
National Incident Management System
Payment Information
Period of Performance Extensions
Procurement Integrity
Record Retention
Whole Community Preparedness
Other Post-Award Requirements

1. Termination Provisions
FEMA may terminate a federal award in whole or in part for one of the following reasons.

FEMA and the recipient must still comply with closeout requirements at 2 C.F.R. §§ 200.344-200.345 even if an award is terminated in whole or in part. To the extent that subawards are permitted under this NOFO, pass-through entities should refer to 2 C.F.R. § 200.340 for additional information on termination regarding subawards. a. Noncompliance
If a recipient fails to comply with the terms and conditions of a federal award, FEMA may terminate the award in whole or in part. If the noncompliance can be corrected, FEMA may first attempt to direct the recipient to correct the noncompliance. This may take the form of a

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Compliance Notification. If the noncompliance cannot be corrected or the recipient is non- responsive, FEMA may proceed with a Remedy Notification, which could impose a remedy for noncompliance per 2 C.F.R. § 200.339, including termination. Any action to terminate based on noncompliance will follow the requirements of 2 C.F.R. §§ 200.341-200.342 as well as the requirement of 2 C.F.R. § 200.340(c) to report in FAPIIS the recipient’s material failure to comply with the award terms and conditions. See also the section on Actions to Address Noncompliance in this NOFO or in the Preparedness Grants Manual. b. With the Consent of the Recipient
FEMA may also terminate an award in whole or in part with the consent of the recipient, in which case the parties must agree upon the termination conditions, including the effective date, and in the case of partial termination, the portion to be terminated. c. Notification by the Recipient
The recipient may terminate the award, in whole or in part, by sending written notification to FEMA setting forth the reasons for such termination, the effective date, and in the case of partial termination, the portion to be terminated. In the case of partial termination, FEMA may determine that a partially terminated award will not accomplish the purpose of the federal award, so FEMA may terminate the award in its entirety. If that occurs, FEMA will follow the requirements of 2 C.F.R. §§ 200.341-200.342 in deciding to fully terminate the award.

2. Program Evaluation
Recipients and subrecipients are encouraged to incorporate program evaluation activities from the outset of their program design and implementation to meaningfully document and measure their progress towards meeting an agency priority goal(s). Title I of the Foundations for Evidence-Based Policymaking Act of 2018 (Evidence Act), Pub. L. No. 115-435 (2019) urges federal awarding agencies and federal assistance recipients and subrecipients to use program evaluation as a critical tool to learn, to improve equitable delivery, and to elevate program service and delivery across the program lifecycle. Evaluation means “an assessment using systematic data collection and analysis of one or more programs, policies, and organizations intended to assess their effectiveness and efficiency.” Evidence Act § 101 (codified at 5 U.S.C. § 311). Evaluation costs are allowable costs (either as direct or indirect), unless prohibited by statute or regulation.

In addition, recipients are required to participate in a DHS-led evaluation if selected, which may be carried out by a third-party on behalf of the Program Office or DHS. By accepting grant funds, recipients agree to participate in the evaluation, which may include analysis of individuals who benefit from the grant, and provide access to program operating personnel and participants, as specified by the evaluator(s) during the award.

3. Period of Performance Extensions
Extensions to the period of performance for this program are allowed. Extensions to the POP identified in the award will only be considered through formal, written requests to the recipient’s FEMA Preparedness Officer and must contain specific and compelling justifications as to why an extension is required. Recipients are advised to coordinate with

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the FEMA Preparedness Officer as needed when preparing an extension request. Please see the Preparedness Grants Manual for more information.

4. Financial Assistance Programs for Infrastructure
a. Build America, Buy America Act
Recipients and subrecipients must comply with the Build America, Buy America Act (BABAA), which was enacted as part of the Infrastructure Investment and Jobs Act §§ 70901-70927, Pub. L. No. 117-58 (2021); and Executive Order 14005, Ensuring the Future is Made in All of America by All of America’s Workers. See also OMB Memorandum M-22- 11, Initial Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure.

None of the funds provided under this program may be used for a project for infrastructure unless the iron and steel, manufactured products, and construction materials used in that infrastructure are produced in the United States.

The Buy America preference only applies to articles, materials, and supplies that are consumed in, incorporated into, or affixed to an infrastructure project. As such, it does not apply to tools, equipment, and supplies, such as temporary scaffolding, brought to the construction site and removed at or before the completion of the infrastructure project. Nor does a Buy America preference apply to equipment and furnishings, such as movable chairs, desks, and portable computer equipment, that are used at or within the finished infrastructure project but are not an integral part of the structure or permanently affixed to the infrastructure project.

To see whether a particular FEMA federal financial assistance program is considered an infrastructure program and thus required to include a Buy America preference, please see Programs and Definitions: Build America, Buy America Act | FEMA.gov and Build America, Buy America Act Frequently Asked Questions (FAQs) | FEMA.gov. Additional information is found in Buy America Preference in FEMA Financial Assistance Programs for Infrastructure, FEMA Interim Policy #207-22-0001.
b. Waivers
When necessary, recipients (and subrecipients through their pass-through entity) may apply for, and FEMA may grant, a waiver from these requirements.

A waiver of the domestic content procurement preference may be granted by the agency awarding official if FEMA determines that:

Applying the domestic content procurement preference would be inconsistent with the public interest.

The types of iron, steel, manufactured products, or construction materials are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality.

The inclusion of iron, steel, manufactured products, or construction materials produced in the United States will increase the cost of the overall project by more than 25%.

Council Packet - November 4, 2024
60 FY 2023 HSGP NOFO Back to the Top
For FEMA awards, the process for requesting a waiver from the Buy America preference requirements can be found on FEMA’s website at: "Buy America" Preference in FEMA Financial Assistance Programs for Infrastructure | FEMA.gov. c. Definitions
Construction materials: an article, material, or supply — other than an item primarily of iron or steel; a manufactured product; cement and cementitious materials; aggregates such as stone, sand, or gravel; or aggregate binding agents or additives — that is or consists primarily of non-ferrous metals, plastic and polymer-based products (including polyvinylchloride, composite building materials, and polymers used in fiber optic cables), glass (including optic glass), lumber, paint, and drywall.

Domestic content procurement preference: Means all iron and steel used in the project are produced in the United States; the manufactured products used in the project are produced in the United States; or the construction materials used in the project are produced in the United States.

Federal financial assistance: Generally defined in 2 C.F.R. § 200.1 and includes all expenditures by a federal agency to a non-federal entity for an infrastructure project, except that it does not include expenditures for assistance authorities relating to major disasters or emergencies under sections 402, 403, 404, 406, 408, or 502 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act relating to a major disaster or emergency declared under section 401 or 501, respectively, or pre and post disaster or emergency response expenditures.

Infrastructure: Infrastructure projects which serve a public function, including at a minimum, the structures, facilities, and equipment for, in the United States, roads, highways, and bridges; public transportation; dams, ports, harbors, and other maritime facilities; intercity passenger and freight railroads; freight and intermodal facilities; airports; water systems, including drinking water and wastewater systems; electrical transmission facilities and systems; utilities; broadband infrastructure; and buildings and real property; and structures, facilities, and equipment that generate, transport, and distribute energy.

Produced in the United States means the following for:

Iron and steel: All manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.

Manufactured products: The product was manufactured in the United States, and the cost of the components of the manufactured product that are mined, produced, or manufactured in the United States is greater than 55% of the total cost of all components of the manufactured product, unless another standard for determining the minimum amount of domestic content of the manufactured product has been established under applicable law or regulation.

Construction Materials: All manufacturing processes for the construction material occurred in the United States.

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61 FY 2023 HSGP NOFO Back to the Top
Project: is any activity related to the construction, alteration, maintenance, or repair of infrastructure in the United States.

Council Packet - November 4, 2024
Fiscal Year 2023
Homeland Security Grant Program
California Supplement to the
Federal Notice of Funding Opportunity
October 2023

Council Packet - November 4, 2024
SECTION 1—OVERVIEW………………………………………………………………………… 1
Federal Program Announcement
Information Bulletins
Grant Management Memoranda
Purpose of the California Supplement
Eligible Subrecipients
Tribal Allocations
Subrecipient Allocations
Supplanting
Public/Private Organizations
Debarred/Suspended Parties
Key Changes to the FY 2023 Homeland Security Grant Program SECTION 2—FEDERAL CHANGES AND INITIATIVES ....................................................... 4 FY 2023 Nationa
l Priorities
National Campaigns and Programs
National Cybersecurity Review
NIMS Implementation
Law Enforcement Terrorism Prevention Activities
Management and Administration
Indirect Costs
Organization Costs – Overtime
Personnel Cap
Equipment Typing/Identification and Use
Equipment Maintenance/Sustainment
Emergency Communications Projects
Telecommunications Equipment and Services Prohibitions
Small Unmanned Aircraft Systems
Emergency Operations Plans
Conflict of Interest
Build America Buy America Act (BABAA)
SECTION 3—STATE CHANGES AND INITIATIVES .......................................................... 14 FY 2023 Investment
s
California Homeland Security Strategy Goals
State Initiative Funding
“On Behalf Of”
Public Alert and Warning
SECTION 4—REQUIRED STATE APPLICATION COMPONENTS ...................................... 16 Financial Management
Forms Workbook
Subrecipient Grants Management Assessment
Application Attachments
Standard Assurances
Operational Areas and Urban Areas
Table of Contents | 2023

Council Packet - November 4, 2024
Operational Areas Only
Urban Areas Only
Fusion Centers Only
State Agencies and Tribes Only
SECTION 5—THE STATE APPLICATION PROCESS .............................................................. 21 Application Submission
Late or Incomplete Application
HSGP Contact Information
Subaward Approval
SECTION 6—POST AWARD REQUIREMENTS .................................................................... 23 Payment Request Process
Advances and Interest Earned on Advances
Semi-Annual Drawdown Requirements
Modifications
Training
Exercises, Improvement Plans, and After-Action Reporting Procurement Standards and Written Procedures
Procurement Thresholds
Procurement Documentation
Noncompetitive Procurement
Performance Bond
Environmental Planning and Historic Preservation
Construction and Renovation
Inventory Control and Property Management
Equipment Disposition
Performance Reporting
Extension Requests
Progress Reports on Grant Extensions
Monitoring
Failure to Submit Required Reports
Suspension/Termination
Closeout
Records Retention

ATTACHMENTS
A – FY 2023 HSGP Allocations
B – FY 2023 HSGP Timeline
C – FY 2023 HSGP Program Checklist

Council Packet - November 4, 2024
Section 1 ‒ Overview | 2023
Federal Program
Announcement
Information
Bulletins
Grant
Management
Memoranda
Purpose of the
California
Supplement
Eligible
Subrecipients
Tribal
Allocations
In February 2023, the U.S. Department of Homeland Security (DHS)/Federal Emergency Management Agency (FEMA)
issued the Fiscal Year (FY) 2023 Homeland Security Grant Program (HSGP), Notice of Funding Opportunity (NOFO)
and the FEMA Preparedness Grants Manual.

Subrecipients must follow the programmatic requirements in the NOFO, FEMA Preparedness Grants Manual, and the
applicable provisions of the Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards located in Title 2, Code of Federal
Regulations (C.F.R.), Part 200.

DHS issues Information Bulletins (IBs) to provide updates, clarification, and new requirements throughout the life of the grant.

Cal OES issues Grant Management Memoranda (GMMs)
which provide additional information and requirements
regarding HSGP funds.

The FY 2023 HSGP California Supplement to the NOFO
(State Supplement) is intended to complement, rather than replace, the NOFO and the FEMA Preparedness Grants
Manual. Applicants are highly encouraged to thoroughly
read the NOFO and the Preparedness Grants Manual
before referring to the State Supplement. The State
Supplement will emphasize differences between the FY
2022 and FY 2023 HSGP and highlight additional California policies and requirements applicable to FY 2023 HSGP.

Eligible Applicants, referred to as Subrecipients, include Counties/Operational Areas (OAs), Urban Areas (UAs),
State Agencies (SAs), Departments, Commissions, and
Boards who have or can obtain appropriate state
Department of Finance budget authority for awarded
funds, and federally recognized tribes located in California.

The NOFO strongly encourages Cal OES to provide HSGP
funds directly to tribes in California. To implement this requirement, a special Request for Proposal will be issued to California’s federally recognized tribes. All Subrecipients are encouraged to coordinate with tribal governments to
ensure that tribal needs are considered in their grant
applications.

Council Packet - November 4, 2024
Subrecipient
Allocations
FY 2023 HSGP Subrecipient final allocations are provided in Attachment A and reflect reductions to Subrecipients who did not submit minimum thresholds for National Priority Areas, including Subrecipients opting out of the award
altogether, and increases to Subrecipients that are helping meet statewide minimum level National Priority Area
requirements.

Supplanting Grant funds must be used to supplement existing funds, not replace (supplant) funds that have been appropriated for the same purpose. Subrecipients may be required to
provide supporting documentation that certifies a
reduction in non-federal resources that occurred for
reasons other than the receipt or expected receipt of
federal funds. Supplanting will result in the disallowance of the activity associated with this improper use of federal grant funds.

Public/Private
Organizations
Subrecipients may contract with other public or private organizations to perform eligible activities on approved HSGP projects.

Debarred/
Suspended
Parties

Subrecipients must not make or permit any award
(subaward or contract) at any tier, to any party, that is debarred, suspended, or otherwise excluded from, or
ineligible for, participation in federal assistance programs.

Subrecipients must obtain documentation of eligibility
before making any subaward or contract using HSGP funds and must be prepared to present supporting
documentation to monitors/auditors.

Before entering into a Grant Subaward, the Subrecipient must notify Cal OES if it knows if any of the principals under the subaward fall under one or more of the four criteria listed at 2 C.F.R. § 180.335. The rule also applies to
Subrecipients who pass through funding to other local
entities.

Council Packet - November 4, 2024

Debarred/
Suspended
Parties
Cont.

If at any time after accepting a subaward, Subrecipients learn that any of its principals fall under one or more of the criteria listed at 2 C.F.R. § 180.335, immediate written notice must be provided to Cal OES and all grant activities halted until further instructions are received from Cal OES. The rule also applies to subawards passed through by Subrecipients to local entities.

Key Changes to
the FY 2023
HSGP

National Priority Areas: There are six National Priority Areas (NPAs) for FY 2023. SHSP and UASI applicants must include one Investment Justification (IJ) for each NPA that has a minimum spend requirement, where applicable. For the
NPAs with no minimum spend requirement, the Department
of Homeland Security strongly encourages recipients to
make investments in those areas as they are of critical national concern. For those NPAs that have an associated minimum spend, all projects related to meeting the
minimum spend for those NPAs must be included in the
same IJ.

The six NPAs, along with the relevant minimum spend
requirement, are:
• Enhancing information and intelligence sharing and
cooperation with federal agencies, including the
Department of Homeland Security – 3% minimum;
• Enhancing the protection of soft targets/crowded
places – 3% minimum;
• Enhancing cybersecurity – no minimum requirement;
• Enhancing community preparedness and resilience –
3% minimum;
• Combating domestic violent extremism – 3% minimum;
• Enhancing election security – NEW: 3% minimum.

Council Packet - November 4, 2024
Key Changes to
the FY 2023
HSGP
Cont.

Law Enforcement Terrorism Prevention Activities: Increased from 30% to 35% of the subaward.

Build America, Buy America Act (BABAA):

FY 2023 HSGP is subject to BABAA requirements. The BABAA requires all federal agencies, including FEMA, to ensure that no federal financial assistance for “infrastructure” projects is provided unless all of the iron, steel, manufactured
products, and construction materials used in the project are produced in the United States. The BABAA requirements only apply to awards or funds obligated on or after
January 2, 2023, and do not apply to awards or funds
obligated during the waiver period from July 1, 2022,
through January 1, 2023.

Council Packet - November 4, 2024

Section 2 ‒ Federal Changes and Initiatives | 2023

FY 2023 National
Priorities

DHS/FEMA annually publishes the National Preparedness
Report (NPR) to report national progress in building,
sustaining, and delivering the core capabilities outlined in the goal of a secure and resilient nation. This analysis provides a national perspective on critical preparedness trends for whole community partners to use to inform
program priorities, allocate resources, and communicate with stakeholders about issues of concern.

HSGP Subrecipients are required to prioritize grant funding to demonstrate how investments support closing capability gaps or sustaining capabilities identified in the Threat Hazard Identification and Risk Assessment
(THIRA)/Stakeholder Preparedness Review (SPR) process.

DHS/FEMA continually assesses changes to the threat
landscape to further the National Preparedness Goal
(NPG) of a secure and resilient nation. The following are national priority areas for FY 2023, including the
corresponding percentage of funds required in each area:
• Enhancing information and intelligence sharing and
cooperation with federal agencies, including DHS – 3%;
• Enhancing the protection of soft targets/crowded
places - 3%;
• Enhancing cybersecurity – no minimum;
• Enhancing community preparedness and resilience –
3%
• Combating domestic violent extremism through
enhanced intelligence collection & analysis, training,
and community resilience – 3%; and
• Enhancing election security – 3% minimum.

The NPA specifically addressing emerging threats has been removed, but activities in this category remain allowable expenses under other investment areas. Further, applicants must spend a minimum of 30% of their SHSP and UASI
awards across the six NPAs but have new flexibility on how that funding is allocated. Although 15% is required in
minimum spending across five NPAs, as noted above, the
remaining 15% can be allocated across any of the six
NPAs. Enhancing Cybersecurity NP does not require a
minimum allocation.

Council Packet - November 4, 2024
FY 2023 National
Priorities
Cont.

National Priority projects will be reviewed for effectiveness by DHS/FEMA and must be deemed effective prior to the
obligation or expenditure of funds.

Projects requiring additional information for DHS/FEMA to determine effectiveness of the project, or projects
deemed ineffective, will have a hold placed on their
subaward pending submission of requested information
and DHS/FEMA approval. Once a project is approved by
DHS/FEMA, modifications to the project have special
restrictions regarding modifications as indicated below:

Modifications which do not change the project scope and do not decrease the overall project budget can be
processed via regular modification request.

Modifications which change the project scope or
decrease the overall project budget will require DHS/FEMA approval and must be requested on the National Priority Project Modification Form.

Effectiveness will be evaluated by DHS/FEMA,
Cybersecurity and Infrastructure Security Agency,
DHS Office of Intelligence and Analysis, DHS Center for Prevention Programs and Partnerships, and/or other
DHS components, as appropriate. FEMA will determine
whether the proposed approach is clear, logical, and
reasonable to address the priority areas of interest and contribute to a culture of national preparedness, based on the following four factors:
• Investment Strategy (40%): Projects will be evaluated based on the quality and extent to which the strategy
effectively demonstrates supporting the program
objective of preventing, preparing for, protecting
against, and responding to acts of terrorism, to meet its target capabilities, and otherwise reduce the overall risk to the high-risk urban area, the state, or the nation.
• Budget (20%): Projects will be evaluated based on the extent to which a budget plan for each investment
demonstrates how grant expenditures maximize cost
effectiveness.

Council Packet - November 4, 2024
FY 2023 National
Priorities Cont.
• Impact/Outcomes (40%): Projects will be evaluated on
how this investment helps the jurisdiction close
capability gaps identified in its Stakeholder
Preparedness Review and addresses NPs outlined in the
FY 2023 NOFO. Further, projects will be evaluated on
their identification and estimated improvement of core
capability(ies), the associated standardized target(s)
that align with their proposed investment, and the ways in which improvements are measured and/or
evaluated.
• Past Performance (additional consideration): Projects will be evaluated based on the Subrecipient’s
demonstrated capability to execute the proposed
investments. Under this factor, FEMA will consider the
information provided by the Subrecipient and may also
consider relevant information from other sources.

A detailed description of allowable investments for each NP is included in the FY 2023 HSGP NOFO (Section A).

National
Campaigns and
Programs
Whole Community Preparedness – Subrecipients should
engage with the whole community to advance individual
and community preparedness and to work as a nation to
build and sustain resilience. In doing so, Subrecipients are encouraged to consider the needs of individuals with
access and functional needs and limited English
proficiency in the activities and projects funded by the grant.

Subrecipients should utilize established best practices for whole community inclusion and engage with stakeholders
to advance individual and jurisdictional preparedness and resilience. Subrecipients are encouraged to consider the necessities of all Californians in the activities and projects funded by the grant, including children, seniors, individuals with disabilities or access and functional needs, individuals with diverse culture and language use, individuals with lower economic capacity, and other underserved
populations.

Council Packet - November 4, 2024
National
Campaigns and
Programs Cont.

Active Shooter Preparedness – DHS developed a
comprehensive Active Shooter Preparedness website,
which strives to enhance national preparedness through a whole-community approach by providing the necessary
products, tools, and resources to help all stakeholders prepare for and respond to an active shooter incident.

Subrecipients are encouraged to review the referenced
active shooter resources and evaluate their preparedness needs.

Soft Targets and Crowded Places – States, territories, UAs, and public and private sector partners are encouraged to identify security gaps and build capabilities that address security needs and challenges related to protecting
locations or environments that are easily accessible to large numbers of people on a predictable or semi-
predictable basis that have limited security or protective measures in place, including town centers, shopping malls, open-air venues, outside hard targets/venue perimeters, and other places of meeting and gathering. For more
information, please see DHS’s Hometown Security Program.

Community Lifelines – FEMA created Community Lifelines
to reframe incident information and impacts using plain language and unity of effort to enable the integration of preparedness efforts, existing plans, and identifies unmet needs to better anticipate response requirements.

Additional information may be found at the Community
Lifelines Implementation Toolkit website.

Strategic Framework for Countering Terrorism and Targeted Violence – DHS adopted the DHS Strategic Framework for
Countering Terrorism and Targeted Violence which
explains how the department will use the tools and
expertise that have protected and strengthened the
country from foreign terrorist organizations to address the evolving challenges of today.

Council Packet - November 4, 2024
National
Campaigns and
Programs Cont.

Countering Violent Extremism (CVE) Training - Foreign
terrorist groups and individual terrorist thought leaders recruit or inspire Westerners to carry out attacks against western and U.S. targets, including individuals living in communities with the U.S. via, but not limited to, print, video, and social media, as well as through personal
interaction. But we also know that violent extremism is not a phenomenon restricted solely to one community and
that any effort to counter violent extremism must be
applicable to all ideologically motivated violence. Efforts to provide information and training regarding CVE should emphasize the strength of local communities’ approach.

National
Cybersecurity
Review
The National Cybersecurity Review (NCSR) is a required
assessment for all Subrecipients of State Homeland Security Program (SHSP) and Urban Areas Security Initiative (UASI) funding to be completed between October and
February 2024.

The NCSR is a no-cost, anonymous, and annual self-
assessment designed to measure gaps and capabilities of state, local, tribal, territorial, nonprofit, and private sector agencies’ cybersecurity programs.

Additionally, FEMA recognizes that some subawards will
not be issued until after the NCSR has closed. In these cases, Subrecipients will be required to complete the first available NCSR offered after the subaward has been
issued by Cal OES.

The Chief Information Officer (CIO), Chief Information
Security Officer (CISO), or equivalent should complete the NCSR. If there is no CIO or CISO, the most senior
cybersecurity professional should complete the
assessment. Additional information may be found in IB 439 and 429a.

NIMS
Implementation
Prior to the allocation of any federal preparedness awards, Subrecipients must ensure and maintain the adoption and implementation of the National Incident Management
System (NIMS).

Council Packet - November 4, 2024
Law Enforcement
Terrorism
Prevention
Activities

At least 35% of the grant funding under SHSP and UASI must be dedicated to Law Enforcement Terrorism Prevention
Activities (LETPA). This required LETPA allocation can be from SHSP, UASI, or both and may be met by funding
projects in any combination of the six NPAs and any other investments.

Allowable expenditures can be found in the authorizing
legislation, Preparedness Grants Manual, Information
Bulletin (IB) No. 473 Supplemental Guidance for LETPA
Expenditures, the National Prevention Framework, and
National Protection Framework.

For an activity to be counted towards the LETPA
requirement, it must have a law enforcement terrorism
prevention nexus. If an activity is listed in the authorizing legislation or can be directly tied to a capability in the National Prevention Framework or shared capability in the National Protection Framework, then it is presumed to have law enforcement nexus and be a LETPA. For all other
claimed activities, nexus to law enforcement and terrorism prevention must be clearly explained.

Refer to IB 485 - FY23 LETPA Supplemental Guidance to the NOFO for further direction on how to account for LETPA
activities, best practices for submitting LETPA investments, and information on how to distinguish LETPA from other
activities .

Management
and
Administration
The Management and Administration (M&A) allowance for
Subrecipients is set at a maximum of 5% for FY 2023 HSGP.

Indirect Costs
Indirect costs are allowable under the FY 2023 HSGP Grant Award.

Subrecipients with an indirect cost rate approved by their cognizant federal agency may claim indirect costs based on the established rate. Indirect costs claimed must be calculated using the base approved in the indirect cost negotiation agreement. A copy of the approved
negotiation agreement is required at the time of
application.

Council Packet - November 4, 2024
Indirect Costs
Cont.

Indirect costs are in addition to the M&A allowance and must be included in the Grant Award application as a
“Project” and reflected in the FMFW on the Indirect Cost Tab if being claimed under the award.

Indirect costs must be claimed no more than once
annually, and only at the end of the Subrecipient’s fiscal year. An exception to this rule applies if there is a mid-year change to the approved indirect cost rate; in this case, costs incurred to date must be claimed. At that time, a Grant Subaward Modification reflecting the rate change
must also be submitted to Cal OES, along with a copy of the new Indirect Cost Rate Agreement.

Organization
Costs – Overtime

Operational overtime costs are allowable for increased
security measures at critical infrastructure sites if associated with detecting, deterring, disrupting, and preventing acts of terrorism and other catastrophic events.

Pursuant to page A-4 of the Preparedness Grants Manual, all operational overtime requests must clearly explain how the request meets the criteria of one or more of the
categories listed in Table 2: Authorized Operational
Overtime Categories.

Requests must address the threat environment as it relates to the event or activity requiring operational overtime support and explains how the overtime activity is
responsive to the threat.

Post-event operational overtime requests will only be
considered on a case-by-case basis, where it is
demonstrated exigent circumstances prevented
submission of a request in advance of the event or activity.

Requests for overtime costs must be submitted to Cal OES via Allowability Request Log (ARL) Form at the time of
application, if the activity will occur within one year of the final application submission. All subsequent requests must be submitted at least 60 days in advance of the activity.

All operational overtime costs must be formally pre-
approved in writing by DHS/FEMA.

Council Packet - November 4, 2024
Personnel Cap

Pursuant to 6 U.S.C. § 609(b), SHSP and UASI funds may be used for personnel costs, totaling up to 50 percent of each fund source. A Subrecipient may request this requirement be waived by DHS/FEMA, via Cal OES. Requests for
personnel cap waivers must be submitted separately for
each fund source in writing to the Program Representative on official letterhead, with the following information:
• Documentation explaining why the cap should be
waived;
• Conditions under which the request is being submitted; and
• A budget and method of calculation of personnel costs both in percentages of the Grant Award and in total
dollar amount (waivers must be calculated separately
for SHSP and UASI, outlining salary, fringe benefits, and any M&A costs).

Subrecipient requests to exceed the personnel cap must
be received by Cal OES at the time of application.

Subaward modifications impacting the personnel cap will be reviewed on a case-by-case basis and may require the submittal of the above-mentioned information.

Please see IB 421b for more information on the waiver
process.

Equipment
Typing/
Identification
and Use

Allowable HSGP equipment is listed on the FEMA
Authorized Equipment List (AEL) website.

Subrecipients that allocate HSGP funds towards equipment are required to type and identify the capability associated with that equipment. The FEMA Resource Typing Library
Tool (RTLT) can be used to help determine the type and
capability.

Per FEMA policy, the purchase of weapons and weapon
accessories are not allowed with HSGP funds. Special rules apply to pharmaceutical purchases, medical
countermeasures, and critical emergency supplies; refer to page A-10 of the FEMA Preparedness Grants Manual for
additional information.

Council Packet - November 4, 2024
Equipment Typing/
Identification and
Use Cont.

Expenditures for general purpose equipment are allowable if they align to and support one or more core capabilities identified in the NPG, and in addition, are
deployable/sharable through the Emergency
Management Assistance Compact and allowable under
6 U.S.C. § 609. Refer to the NOFO and Preparedness Grants Manual for examples of allowable general-purpose
equipment.

Equipment
Maintenance/
Sustainment
Use of HSGP funds for maintenance contracts, warranties, repair or replacement costs, upgrades, and user fees are allowable as described in FEMA IBs 336 and 379, as well as Grant Programs Directorate (GPD) Policy FP-205-402-125-1.

Emergency
Communications
Projects
All Subrecipient emergency communications projects must comply with the SAFECOM Guidance on Emergency
Communications Grants and describe in their FMFW how
such activities align with the goals of the Statewide
Communications Interoperability Plan.

Telecom
Equipment and
Services
Prohibitions

Effective August 13, 2020, section 889(f)(2)-(3) of the John S. McCain National Defense Authorization Act for FY 2019 (NDAA) and 2 C.F.R. § 200.216, 200.471, and Appendix II to 2 C.F.R. Part 200 prohibit DHS/FEMA Recipients and
Subrecipients (including their contractors and
subcontractors) from using any FEMA funds under open or new awards for the following telecommunications
equipment or services:
1) Telecommunications equipment produced by Huawei
Technologies Company or ZTE Corporation, (or any
subsidiary or affiliate of such entities);
2) For the purpose of public safety, security of government facilities, physical security surveillance of critical
infrastructure, and other national security purposes,
video surveillance and telecommunications equipment
produced by Hytera Communications Corporation,
Hangzhou Hikvision Digital Technology Company, or
Dahua Technology Company (or any subsidiary or
affiliate of such entities);
3) Telecommunications or video surveillance services
provided by such entities or using such equipment; or

Council Packet - November 4, 2024
Telecom Equipment
and Services
Prohibitions Cont.
4) Telecommunications or video surveillance equipment or services produced or provided by an entity that the
Secretary of Defense, in consultation with the Director of National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an
entity owned or controlled by, or otherwise connected
to, the People’s Republic of China.

Additional guidance is available in FEMA Policy #405-143- 1, Prohibitions on Expending FEMA Award Funds for
Covered Telecommunications Equipment or Services
Prohibited and
Controlled
Equipment

Effective May 25, 2022, Executive Order (EO) 14074,
Advancing Effective, Accountable Policing and Criminal
Justice Practices to Enhance Public Trust and Public Safety, Section 12(a) of EO 14074 directs the Department of
Homeland Security (DHS) to review its grant programs and, consistent with applicable law, prohibits the use of grant funding to purchase certain types of military equipment by state, local, tribal, and territorial law enforcement
agencies (LEAs).

For all awards issued on or after January 1, 2023, The policy directly prohibits certain types of equipment outright
(prohibited equipment), whereas other types of equipment may be controlled, or LEAs are required to submit
certifications prior to purchase.

Even if equipment is listed as controlled equipment and is not outright prohibited, that does not automatically make it allowable under a particular FEMA program. Recipients and Subrecipients should refer to applicable program
guidance or contact your Program Representative to
determine if a particular type of equipment is allowable under that program.

Additional information regarding Prohibited and Controlled Equipment is available on FEMA Policy 207-22-0002.

Council Packet - November 4, 2024
Small Unmanned
Aircraft Systems

All requests to purchase Small Unmanned Aircraft Systems (SUAS) with FEMA grant funding must comply with FEMA
Policy 207-22-0002 and include copies of the policies and procedures in place to safeguard individuals’ privacy, civil rights, and civil liberties of the jurisdiction that will purchase, take title to, or otherwise use the SUAS equipment. The Authorized Equipment Listing for 03OE-07-SUAS details
questions that must be included in the Aviation Request justification. Reference the Presidential Memorandum:

Promoting Economic Competitiveness While Safeguarding
Privacy, Civil Rights, and Civil Liberties in Domestic Use of Unmanned Aircraft Systems for additional information.

FEMA approval is required before a SUAS can be
purchased with HSGP grants funds.

Emergency
Operations Plans
Subrecipients should update their Emergency Operations
Plan (EOP) at least once every two years to remain
compliant with the Comprehensive Preparedness Guide
101 version 2.0.

Conflict of
Interest

To eliminate and reduce the impact of conflicts of interest in the subaward process, Subrecipients and pass-through entities must follow their own policies and procedures
regarding the elimination or reduction of conflicts of
interest when making subawards. Subrecipients and pass- through entities are also required to follow any applicable federal, state, local, and tribal statutes or regulations governing conflicts of interest in the making of subawards.

Subrecipients must disclose to their Program
Representative, in writing, any real or potential conflict of interest as defined by the federal, state, local, or tribal statutes or regulations, which may arise during the
administration of the HSGP subaward within five days of learning of the conflict of interest.

Council Packet - November 4, 2024
Build America,
Buy America Act
(BABAA)
Under FEMA financial assistance programs, the BABAA
requirements apply to:

• New awards made on or after January 2, 2023,
• New funding that FEMA obligates to existing awards or through renewal awards on or after January 2, 2023;
and
• Infrastructure projects.

Funds provided under this program may not be used for a project for infrastructure unless the iron and steel,
manufactured products, and construction materials used
in that infrastructure are produced in the United States.

The Buy America preference only applies to articles,
materials, and supplies that are consumed in, incorporated into, or affixed to an infrastructure project. As such, it does not apply to tools, equipment, and supplies, such as
temporary scaffolding, brought to the construction site and removed at or before the completion of the
infrastructure project. Additionally, the Buy America
preference does not apply to equipment and furnishings, such as movable chairs, desks, and portable computer
equipment, that are used at or within the finished
infrastructure project but are not an integral part of the structure or permanently affixed to the infrastructure
project.

When necessary, Subrecipients may apply for a waiver
from these requirements. Additional information regarding the BABAA can be found on FEMA’s website under
Buy America Preference Buy America Preference.

Council Packet - November 4, 2024
FY 2023
Investments
The State prioritized the following investment strategies for the FY 2023 subawards:

1. Enhance Information and Intelligence Sharing and
Cooperation with Federal Agencies, including DHS
(National Priority);

2. Enhance the Protection of Soft Targets/Crowded Places (National Priority);

3. Enhance Cybersecurity (National Priority);

4. Enhancing Community Preparedness and Resilience
(National Priority);

5. Combating Domestic Violent Extremism (National
Priority);

6. Strengthen Emergency Communications Capabilities
Through Planning, Governance, Technology, and
Equipment;

7. Enhance Medical and Public Health Preparedness;

8. Strengthen Information Sharing
and Collaboration (non-
Fusion Center);

9. Enhance Multi-Jurisdictional/Inter-Jurisdictional All- Hazards/Whole Community Incident Planning, Response
& Recovery Capabilities;

10. Protect Critical Infrastructure and Key Resources
(includes Food and Agriculture); and

11. Enhance Election Security (National Priority).

Council Packet - November 4, 2024

Section 3 ‒ State Changes and Initiatives | 2023

California
Homeland
Security Strategy
Goals

The State prioritized the following California Homeland Security Strategy Goals for the FY 2023 subawards:

1. Enhance Information Collection, Analysis, and Sharing, in Support of Public Safety Operations Across California;

2. Protect Critical Infrastructure and Key Resources from All Threats and Hazards;

3. Strengthen Security and Preparedness Across
Cyberspace;

4. Strengthen Communications Capabilities through
Planning, Governance, Technology, and Equipment;

5. Enhance Community Preparedness;

6. Enhance Multi-Jurisdictional/Inter-Jurisdictional All- Hazards Incident Catastrophic Planning, Response, and
Recovery Capabilities;

7. Improve Medical and Health Capabilities;

8. Enhance Incident Recovery Capabilities;

9. Strengthen Food and Agriculture Preparedness; and

10.Enhance Homeland Security Exercise, Evaluation, and
Training Programs.

State Initiative
Funding
For FY 2023, Cal OES shall retain 20% of the SHSP and 18.5% of the UASI funding for state initiatives.
“On Behalf Of” Cal OES may, in conjunction with local approval authorities, designate funds “on behalf of” local entities who choose to decline or fail to utilize their subaward in a timely manner.

Public Alert and
Warning
Cal OES encourages Subrecipients to consider the use of this funding to assist their jurisdiction’s alignment with the State of California Alert and Warning Guidelines,
developed pursuant to Senate Bill 833 of the 2018
Legislative Session.

Council Packet - November 4, 2024

Section 4 ‒ Required State Application Components | 2023

Financial
Management
Forms
Workbook
The FY 2023 Cal OES FMFW includes:

Grant Subaward Face Sheet – Use the Grant Subaward Face Sheet to apply for grant programs. The Grant Subaward Face Sheet must be signed and submitted in portrait format. An active UEI# (Formerly DUNS#) is required. UEI registration information is available sam.gov.

Authorized Body of 5 – Provide the contact information of Authorized Agents (AA), delegated via the Governing Body Resolution (GBR) or Signature Authorization Form, including staff related to grant activities. More than one person is
recommended for designation as the AA; in the absence of an AA, an alternate AA can sign requests.

Project Ledger – The project ledger is used in the application process to submit funding information and is used for submitting cash requests, Grant Subaward Modifications, and assists with the completion of the Biannual Strategy Implementation Report (BSIR).

Planning Tab – Provides detailed information on grant-funded planning activities with a final product identified.

Organization Tab – Provides detailed information on grant-funded organizational activities.

Equipment Tab – Detailed information must be provided under the equipment description for all grant-funded equipment. AEL numbers must be included for all items of equipment. Always refer to the AEL for a list of allowable equipment and conditions, if any.

Training Tab – Provides detailed information on grant-funded training activities. All training activities must receive Cal OES approval prior to starting the event, including a Training Feedback number. The Training Request Form must be submitted and approved to obtain a Training Feedback number and should be submitted at least 30 days in advance.

Exercise TAB – Provides detailed information on grant-funded exercises.

M&A Tab – Provides information on grant-funded M&A activities.

Indirect Costs Tab – Provides information on indirect costs.

Council Packet - November 4, 2024
Financial
Management
Forms
Workbook
Cont.

Consultant-Contractor Tab – Provides detailed information on grant-funded consultants and contractors.

Authorized Agent Page – The AA Page must be submitted with the application, all cash requests, and Grant Subaward
Modifications. The AA Page must include a valid signature on file with Cal OES and the date.

Subrecipient
Grants
Management
Assessment
Per 2 C.F.R. § 200.332, Cal OES is required to evaluate the risk of non-compliance with federal statutes, regulations, and grant terms and conditions posed by each Subrecipient of pass- through funding. The Subrecipient Grants Management
Assessment Form contains questions related to an organization’s experience in the management of federal grant awards. It is used to determine and provide an appropriate level of technical assistance, training, and grant oversight to Subrecipients during the subaward. The questionnaire must be completed and
returned with the grant application.

Application
Attachments
Federal Funding Accountability and Transparency Act (FFATA) Financial Disclosure – Use the FFATA Financial Disclosure Form to provide the information required by the Federal Funding Accountability and Transparency Act of 2006.

Certification Regarding Lobbying – Use the Certification Regarding Lobbying Form to certify lobbying activities, as stipulated by the Byrd Anti-Lobbying Amendment,
31 U.S.C. § 1352.

Intelligence Analysts Certificates – Pursuant to the Preparedness Grants Manual, Cal OES must have certificates for completion of training for fusion center analytical personnel. Please provide copies of certificates for each intelligence analyst, if applicable.

UASI Footprint (UASIs Only) – The Urban Area Working Group (UAWG) establishes the ‘footprint’ of the UA. A map or list defining the footprint must be included with the application.

UAWG Member Roster (UASIs Only) – A list of all current UAWG members with positions or titles.

Indirect Cost Rate Agreement – If claiming indirect costs at a federally-approved rate, please provide a copy of the approved indirect cost rate agreement.

Council Packet - November 4, 2024
Standard
Assurances
The Standard Assurances list the requirements to which the Subrecipients will be held accountable. All Applicants will be required to submit a signed, original of the FY 2023 Standard Assurances as part of their FY 2023 HSGP application. The required Standard Assurances can be found only in PDF format on the Cal OES website.

NOTE: Self-created Standard Assurances will not be accepted.

Operational
Areas and
Urban Areas
Governing Body Resolution – The GBR appoints AAs (identified by the individual’s name or by a position title) to act on behalf of the governing body and the Applicant by executing any actions necessary for each application and subaward. All Applicants are required to submit a copy of an approved GBR with their grant application. Resolutions may be valid for up to three grant years given the following:
• The resolution identifies the applicable grant program (e.g., EMPG and/or HSGP);
• The resolution identifies the applicable grant years, (e.g., FY 2023, FY 2024, FY 2025; and
• Adheres to any necessary elements required by local
protocols, rules, etc., if applicable.

Resolutions that only identify a single grant program will only be valid for that single program. Resolutions that do not identify applicable grant years will only be valid for the grant year in which the resolution was submitted.

Authorized Agent Information – For each person or position appointed by the governing body, identify the individual in the Authorized Body of 5 ledger of the FMFW.

All changes in AA and contact information must be provided to Cal OES in writing. If the GBR identifies the AA by name, a new Resolution is needed when changes are made. If the GBR
identifies the AA by position and/or title, changes may be made by submitting a request on the entity’s letterhead, signed by an existing AA. Cal OES will not accept signatures of an AA’s designee, unless authorized by the GBR. A change to an AA's designee must be submitted on agency letterhead and signed by the AA, announcing the change to their designee.

Council Packet - November 4, 2024
Operational
Areas Only
Approval Authority Body – OAs must appoint an Anti-Terrorism Approval Body (Approval Authority) to have final approval of the OA’s application for HSGP funds. Each member of the Approval Authority must provide written agreement with the OA’s
application for HSGP funds. The Approval Authority shall consist of the following representatives, and additional voting members may be added by a simple majority vote of the following standing members:
• County Public Health Officer or designee responsible for Emergency Medical Services
• County Fire Chief or Chief of Fire Authority
• Municipal Fire Chief (selected by the OA Fire Chiefs) • County Sheriff
• Chief of Police (selected by the OA Police Chiefs)
Urban Areas
Only
Urban Area Working Groups – Membership in the UAWG must provide either direct or indirect representation for all relevant jurisdictions and response disciplines (including law enforcement, fire service, EMS, hospitals, public health, and emergency management) that comprise the defined UA. It also must be inclusive of local Citizen Corps Council and tribal representatives.

The UAWG should also ensure the integration of local emergency management, public health, and health care systems into a coordinated sustained local capability to respond effectively to a mass casualty incident. Additional group composition criteria are found in the FEMA Preparedness Grants Manual.

Threat Hazard Identification and Risk Assessment – Subrecipients are required to submit a THIRA for all 32 core capabilities.

Beginning in 2019, UAs are required to submit a THIRA every three years. An annual capability assessment will still be required.

Stakeholder Preparedness Review – The SPR is an annual grant requirement for all states, territories, and UAs. It is an annual capability assessment, which helps jurisdictions identify capability gaps and prioritize investment requirements to reach the targets set in their THIRA.

All fusion center investments must align to, and reference, specific performance areas of the assessment that the funding is intended to support.

Council Packet - November 4, 2024
Fusion
Centers Only
Fusion Centers are also required to follow all Reporting and Administrative Metrics for California Fusion Centers, as set forth in the Governor’s Homeland Security Advisor/Cal OES Director’s letter dated March 16, 2016. These operational and administrative metrics set forth an integrated and coordinated approach for regular and proactive information and intelligence sharing between all fusion centers in the California State Threat Assessment System (STAS).

State
Agencies and
Tribes Only
State Agencies, and federally recognized tribes may submit the Signature Authorization Form in lieu of a GBR, signed by the most senior ranking official, such as the Secretary, Director, President, Chancellor, or Chairperson.

Council Packet - November 4, 2024

Section 5 ‒ State Application Process | 2023

Application
Submission
Subrecipients must submit an electronic copy of their completed FMFW to their Program Representative for review. After the application is approved, a completed copy of the FMFW, along with all other application components must be submitted, with official signatures, by the application due date. During the application process, if it is determined not all allocated funds can be expended by the end of the period of performance, please inform a Program Representative as soon as possible. The completed application should be received by Cal OES no later than the date provided in the FY 2023 HSGP Timeline, referenced as Attachment B.

Late or
Incomplete
Application
Late or incomplete applications may be denied. If an application is incomplete, the Program Representative may request
additional information. Requests for late submission of applications must be made in writing to the Program
Representative prior to the application due date. Cal OES has sole discretion to accept or reject a late or incomplete grant application.

HSGP Contact
Information
All Subrecipient application materials, questions, comments, and correspondence should be directed to:

California Governor’s Office of Emergency Services
ATTN: Grants Management (Building F)
Homeland Security Grants Unit
3650 Schriever Avenue
Mather, CA 95655

Darlene Arambula (916) 845-8427
Christopher Camacho (916) 845-8789
Laura Halverstadt (916) 845-8899
Antoinette Johnson (916) 845-8260
Jim Lane (916) 845-8428
Tyrone Freeman (916) 328-7750
Abigayle Tirapelle (916) 845-8400
The Program Representative Regional Assignments Map is
available at the Cal OES website under “Regional Assignments”.

Council Packet - November 4, 2024
Subaward
Approval
Subrecipients will receive a formal notification of award no later than 45 days after Cal OES accepts the federal grant award. The award letter must be signed, dated, and returned to Cal OES within 20 calendar days. Once the completed application, along with the signed award letter, is received and approved, reimbursement of eligible subaward expenditures may be
requested using the Cal OES FMFW.

Council Packet - November 4, 2024

Section 6 ‒ Post Award Requirements | 2023

Payment Request
Process
To request an advance or cash reimbursement of HSGP
funds, Subrecipients must first complete a payment request using the Cal OES HSGP FMFW, returning it to the appropriate Program Representative. Subrecipients who fail to follow the workbook instructions may experience delays in processing the payment request.

Payments can only be made if the Subrecipient has an
approved application.

Advances and
Interest Earned on
Advances
An Advance payment is a payment that is requested before Subrecipients have disbursed the funds for program purposes.

Subrecipients may be paid an advance, provided they
maintain a willingness and ability to maintain procedures to minimize the time elapsing between the receipt of funds and their disbursement. The timing and amount of advance
payments must be as close as administratively feasible to the actual disbursements by the Subrecipient for project costs.

Federal rules require advances to be deposited in interest- bearing accounts. Interest earned amounts up to $500 per year may be retained by Subrecipients for administrative expenses; any additional interest earned on federal advance payments must be returned annually to Cal OES.

Semi-Annual
Drawdown
Requirements
All Subrecipients must report expenditures and request funds at least semi-annually throughout the period of performance.

Semi-annual drawdowns should occur by March and
October of each calendar year following final approval of the subaward application, except for the final cash request, which must be submitted within 20 calendar days after the end of the period of performance.

Modifications Post-award budget and scope modifications must be requested using the Cal OES HSGP FMFW v1.23, signed by the Subrecipient’s AA, and submitted to the Program
Representative.

The Subrecipient may implement grant modification
activities, and incur associated expenses, only after receiving written final approval of the modification from Cal OES.

Council Packet - November 4, 2024
Modifications
Cont.

Subrecipients must provide a written justification with all modification requests. The justification may be included in the body of the e-mail transmitting the request, or in a document attached to the transmittal e-mail. Please reference GMM 2018-17 for additional information regarding modification requests.

Modifications to NP Projects have additional restrictions as indicated below:

Modifications which do not change the project scope and do not decrease the overall project budget can be
processed via regular modification request.

Modifications which change the project scope or decrease the overall project budget will require DHS/FEMA approval and must be requested on the National Priority Project
Modification Form.

Training
Requirements

All grant-funded training activities must receive Cal OES approval prior to starting the training event. Cal OES shall allow Subrecipients to develop a “placeholder” for future training conferences when an agenda has not been
established at the time Subrecipient applications are due.

Please work with a Program Representative and the Training Branch to identify a possible “placeholder” for these types of training activities.

When seeking approval of non-DHS/FEMA developed
courses, course materials must be submitted with the
approval requests. Conditional approvals are not offered.

Subrecipients must complete a Training Request Form and submit it electronically to the Cal OES Training Branch to be approved with a Training Feedback Number before
beginning any training activities. This includes project components like travel to, materials for, or attendance in training courses. Training Feedback Numbers should be
obtained no later than 30 days before the first day of the training or related activities. Requests that are submitted with less than 30 days prior to the start of the training or activity are not guaranteed to be approved in time and run the risk of training being unallowable. Training Feedback numbers must

Council Packet - November 4, 2024
Training
Requirements
Cont.
be included on the FMFW Training Ledger to be considered for reimbursement.

For more information on this or other training-related inquiries, contact the Cal OES Training Branch at (916) 845-8745 or [email protected].

Exercises,
Improvement
Plans, and After-
Action Reporting
Subrecipients should engage stakeholders to identify long- term training and exercise priorities. These priorities should address capability targets and gaps identified through the THIRA and SPR process, real-world events, previous exercises, and national areas for improvement identified in the NPR.

Subrecipients must report on all exercises conducted with HSGP grant funds. An After-Action Report
(AAR)/Improvement Plan (IP) or Summary Report (for
Seminars and Workshops) must be completed and submitted to Cal OES within 90 days after exercise/seminars/workshops are conducted. It is acceptable to submit an Exercise
Summary Report for Seminars and Workshops in lieu of a full AAR/IP.

Please e-mail AAR/IPs and Summary Reports to:
• [email protected]
• [email protected]
• [email protected]
For exercise-related issues and/or questions, please email the Cal OES Exercise Team at [email protected].

Exercise costs will not be considered for reimbursement until an AAR/IP is received by Cal OES.

Procurement
Standards and
Written
Procedures
Subrecipients must conduct procurement using documented local government procurement procedures, or the federal procurement standards found in 2 C.F.R. Part 200, whichever are more strict. Subrecipients must also have written conflict of interest policies governing the actions of its employees engaged in the selection, award and administration of
contracts, including disciplinary actions for violations of such standards.

Council Packet - November 4, 2024
Procurement
Thresholds
Effective June 20, 2018, the micro-purchase threshold was increased from $3,500 to $10,000 and the simplified
acquisition threshold was increased from $150,000 to
$250,000. These increases apply to all Subrecipient
procurements executed on or after June 20, 2018.

Refer to IB 434 for additional information.

Procurement
Documentation
Non-federal entities, other than states and territories, are required to maintain and retain records sufficient to detail the history of procurements, covering at least the rationale for the procurement method, contract type, contractor selection or rejection, and the basis for the contract price. For any cost to be allowable, it must be adequately documented. Examples of the types of documents that would meet this requirement include, but are not limited to:
• Solicitation documentation, such as requests for quotes, invitations for bids, or requests for proposals;
• Responses to solicitations, such as quotes, bids, or
proposals;
• Pre-solicitation independent cost estimates and post- solicitation cost/price analyses on file for review by federal personnel, if applicable;
• Contract documents and amendments;
• Documents demonstrating inclusion of required contract provisions; and
• Other documents required by federal regulations
applicable at the time the grant was awarded to the
Subrecipient.

Noncompetitive
Procurement

All noncompetitive procurements exceeding the simplified acquisition threshold requires Cal OES prior written approval to be eligible for reimbursement. This method of procurement must be approved by the local Purchasing Agent prior to submitting a request for Cal OES approval. A copy of the Purchasing Agent’s approval must be included with the
Cal OES Request for Noncompetitive Procurement
Authorization form. Cal OES may request additional
documentation that supports the procurement effort.

Council Packet - November 4, 2024
Noncompetitive
Procurement
Cont.

Cal OES will not reimburse for any noncompetitive
procurement contracts for any HSGP terrorism-related
training, regardless of the cost of the training. Exceptions to this policy may be approved in limited circumstances, e.g., related to a procurement effort that has resulted in
inadequate competition. Please refer to GMM2017-01A and GMM2021-05 for additional guidance.

Performance
Bond
Due to the risks associated with delays in vendor delivery of large equipment procurements, DHS/FEMA allows
Subrecipients to obtain a “performance bond” for items that are paid for up front to ensure delivery of the equipment within the grant period of performance.

Cal OES requires Subrecipients to obtain a performance bond when procuring any equipment item over $250,000, or for any vehicle, aircraft, or watercraft that requires full or partial payment prior to receiving the final product(s).

Performance Bond Waivers may be granted on a case-by-
case basis and must be submitted to Cal OES prior to
procurement.

Environmental
Planning and
Historic
Preservation (EHP)

DHS/FEMA is required to ensure all activities and programs that are funded by the agency comply with federal
Environmental Planning and Historic Preservation (EHP)
regulations. Subrecipients proposing projects or activities (including, but not limited to, training, exercises, the installation of equipment, and construction or renovation projects) that have the potential to impact the environment, or a historic structure must participate in the EHP screening process. EHP Screening Memos must include detailed project information, explain the goals and objectives of the proposed project, and include supporting documentation.

DHS/FEMA may also require the Subrecipient to provide a confidential California Historical Resources Information System (CHRIS) report in addition to the EHP Screening Form.

Determination on the necessity of a CHRIS report is based upon information disclosed on the form. Program
Representatives will provide additional instructions should this report be required.

Council Packet - November 4, 2024
Environmental
Planning and
Historic
Preservation (EHP)
Cont.

EHP Screening Requests should be submitted to Cal OES as early as possible. All projects/activities triggering EHP must receive DHS/FEMA written approval prior to commencement of the funded activity.

Updated information may be referenced in the FEMA GPD
EHP Policy Guidance.

Construction and
Renovation
When applying for construction activity at the time of
application, including communication towers, Subrecipients must submit evidence of approved zoning ordinances,
architectural plans, any other locally required planning permits, and a notice of federal interest. Additionally, Subrecipients are required to submit an SF-424C Budget and Budget Detail that cites project costs. Communication tower construction requests also require evidence that the Federal Communications Commission’s Section 106 review process
was completed.

Subrecipients using funds for construction projects must comply with the Davis-Bacon Act. Subrecipients must ensure that their contractors or subcontractors for construction projects pay workers no less than the prevailing wages for laborers and mechanics employed on projects of a
character like the contract work in the civil subdivision of the state in which the work is to be performed.

Project construction using SHSP and UASI funds may not
exceed $1,000,000 or 15% of the grant subaward (for the purposes of limitations on funding levels, communications towers are not considered construction).

Written approval for construction must be provided by
DHS/FEMA prior to the use of any HSGP funds for construction or renovation. No construction activities (including site preparation, utility installations, and any groundbreaking activities) or equipment installations on existing structures, may begin until the EHP review process is complete.

Council Packet - November 4, 2024
Inventory Control
and Property
Management
Subrecipients must use standardized resource management concepts for resource typing and credentialing, in addition to maintaining an inventory by which to facilitate the effective identification, dispatch, deployment, tracking, and recovery of resources.

Subrecipients must have an effective inventory management system, to include:
• Property records that document description, serial/ID number, fund source, title information, acquisition date, cost, federal cost share, location, use, condition, and ultimate disposition;
• A physical inventory conducted at least every two years; • A control system to prevent loss, damage, and theft of grant purchased equipment and supplies; and
• Adequate maintenance procedures to keep the property
in good condition.

Equipment
Disposition
When original or replacement equipment acquired under the HSGP is no longer needed for program activities, the
Subrecipient must contact the Program Representative to request disposition instructions. See 2 C.F.R. § 200.313(e).

Performance
Reporting
Subrecipients must complete a BSIR each Winter and Summer using the DHS/FEMA Grants Reporting Tool (GRT) for the
duration of the subaward period of performance or until all grant activities are completed and the subaward is formally closed by Cal OES. Failure to submit a BSIR could result in subaward reduction, suspension, or termination.

Access to the BSIR may be obtained through the GRT. To
create a new account, please click the link that reads, “Register for an account” and follow the instructions
provided. The Subrecipient will be required to ensure up-to- date project information is entered. The Project Ledger in the FMFW may assist with the BSIR data entry process. For
additional assistance with the GRT, please contact your Program Representative.

Council Packet - November 4, 2024
Extension
Requests
Extensions to the initial period of performance identified in the subaward will only be considered through formal, written requests to your Program Representative. Upon receipt of the extension request, Cal OES will:

1. Verify compliance with performance reporting
requirements by confirming the Subrecipient has
submitted all necessary performance reports;

2. Confirm the Subrecipient has provided sufficient
justification for the request; and

3. If applicable, confirm the Subrecipient has demonstrated sufficient progress in past situations where an extension was authorized by Cal OES.

Extension requests will be granted only due to compelling legal, policy, or operational challenges, must be project- specific and will only be considered for the following reasons:

1. Contractual commitments with vendors that prevent
completion of the project within the period of
performance;

2. The project must undergo a complex environmental
review which cannot be completed within this timeframe;

3. Projects are long-term by design and therefore,
acceleration would compromise core programmatic
goals; and

4. Where other special circumstances exist.

To be considered, extension requests must be received no later than 60 days prior to the end of the Subrecipient’s period of performance and must contain specific and
compelling justifications as to why an extension is required. All extension requests must address the following:

1. Grant program, fiscal year, and award number;

2. Reason for delay;

3. Current status of the activity/activities;

4. Approved period of performance termination date and
new project completion date;

5. Amount of funds drawn down to date;

6. Remaining available funds, both federal and non-federal;

Council Packet - November 4, 2024
Extension
Requests
Cont.

7. Budget outlining how remaining federal and non-federal funds will be expended;

8. Plan for completion, including milestones and timeframes for each milestone and the position/person responsible for implementing the plan for completion; and

9. Certification the activity/activities will be completed within the extended period of performance without any
modification to the original Project Scope.

General questions regarding extension requirements and the extension request form, should be directed to your Program Representative. For additional information, please see IB 379 .

Extension requests for personnel and salaries do not meet the requirements of IB 379 and will not be granted. Subrecipients are expected to complete all grant-funded personnel
activities by the end of the subaward period of performance.

Progress Reports
on Grant
Extensions
All Subrecipients that receive Cal OES approval to extend their FY 2023 Grant Subaward period of performance may be required to submit progress reports indicating completed and future project milestones on all extended projects. Progress reports must be submitted electronically to the Subrecipient’s Program Representative. Deadlines for the submission of progress reports will be established at the time of extension approval.

Monitoring Cal OES Grants Monitoring actively monitors Subrecipients, through day-to-day communications, programmatic site
visits, desk, and on-site compliance assessments. The purpose of the compliance assessment is to ensure Subrecipients are in compliance with applicable state and federal regulations, grant guidelines, and programmatic requirements.

Monitoring activities may include, but are not limited to:
• Verifying entries recorded on the FMFW categories are properly supported with source documentation;
• Eligibility of and support for expenditures, typically covering two to three years of data;
• Comparing actual Subrecipient activities to those
approved in the grant application and subsequent

Council Packet - November 4, 2024
Monitoring
Cont.
modifications, including the review of timesheets and
invoices as applicable;
• Procurements and contracts;
• Ensuring equipment lists are properly maintained and
physical inventories are conducted;
• Ensuring advances have been disbursed in accordance
with applicable guidelines; and
• Confirming compliance with Standard Assurances; and
• Information provided on performance reports and
payment requests
NOTE: It is the responsibility of all Subrecipients that pass down grant funds to other entities, to maintain and utilize a formal process to monitor the grant activities of their subawards. This requirement includes, but is not limited to, on-site verification of grant activities, as required. It is common for Subrecipients to receive findings in a programmatic site visit or compliance assessment, which require a Corrective Action Plan (CAP) to be submitted by Subrecipients. Those Subrecipients who fail to submit a CAP, as required, shall have a “hold” placed on any future reimbursements until the “finding” is resolved.

Failure to Submit
Required Reports
Periodic reporting is required by the grant. Subrecipients who miss a single reporting deadline may receive a letter
addressed to their Board of Supervisors informing them of the failure to report. County OAs and tribes who fail to report twice consecutively may have subsequent awards reduced
by 10% until timely reporting is reestablished; UASIs may have a “hold” placed on any future reimbursements.

Suspension/
Termination
Cal OES may suspend or terminate grant funding, in whole or in part, or other measures may be imposed for any of the following reasons:

Suspension/
• Failure to submit required reports.
• Failure to expend funds in a timely manner consistent with the grant milestones, guidance, and assurances.
• Failure to comply with the requirements or statutory
progress toward the goals or objectives of federal or state law.
• Failure to make satisfactory progress toward the goals or objectives set forth in the Subrecipient application.
• Failure to follow Grant Subaward requirements or Special Conditions.

Council Packet - November 4, 2024
Termination
Cont.
• Proposing or implementing substantial plan changes to the extent that, if originally submitted, the application would not have been selected for funding.
• False certification in the application or document.
• Failure to adequately manage, monitor, or direct the
grant funding activities of their Subrecipients.

Before taking action, Cal OES will provide the Subrecipient reasonable notice of intent to impose corrective measures and will make every effort to informally resolve the problem.

Closeout

Cal OES will close-out Subrecipient awards when it
determines all applicable administrative actions and all required work of the federal award have been completed.

Subawards will be closed after:
• All funds have been requested and reimbursed, or
disencumbered;
• Receiving all applicable Subrecipient reports indicating all approved work has been completed, and all funds have
been distributed;
• Completing a review to confirm the accuracy of reported information;
• Reconciling actual costs to subawards, modifications, and payments; and
• Verifying the Subrecipient has submitted a final BSIR showing all grant funds have been expended.

Records Retention The records retention period is three years from the date of the Cal OES Grant Closeout letter, or until any pending litigation, claim, or audit started before the expiration of the three-year retention period has been resolved and final action is taken.

For indirect cost rate proposals, cost allocation plans, or other rate computation records, the start of the record retention period is dependent on whether the proposal, plan, or other computation is required to be submitted to the federal
government (or to the pass-through entity) for negotiation purposes. See 2 C.F.R. § 200.334(f).

In order for any cost to be allowable, it must be adequately documented per 2 C.F.R. § 200.403(g).

Council Packet - November 4, 2024
Records Retention
Cont.

The Cal OES Grant Closeout Letter will notify the Subrecipient of the start of the records retention period for all
programmatic and financial grant-related records.

If the State Administrative Agency’s award remains open after the Subrecipient’s submission of the final BSIR, Cal OES will complete any additional BSIR reporting required under the award on behalf of the Subrecipient.

Closed grants may still be monitored and audited. Failure to maintain all grant records for the required retention period could result in a reduction of grant funds, and an invoice to return costs associated with the unsupported activities.

If documents are retained longer than the required retention period, FEMA, the DHS Office of Inspector General,
Government Accountability Office, and pass-through entity have the right to access these records as well. See 2 C.F.R. §§ 200.334, 200.336.

Council Packet - November 4, 2024
38 Attachment A ‒ FY 2023 HSGP Allocations | 2023

*SHSP allocations reflect National Priority Area project adjustments State Homeland Security Program (SHSP)
Operational Area Total Award Operational Area Total Award ALAMEDA 1,650,795 ORANGE 3,091,413
ALPINE 76,145 PLACER 465,161
AMADOR 113,439 PLUMAS 93,069
BUTTE 267,310 RIVERSIDE 2,398,207
CALAVERAS 117,971 SACRAMENTO 1,578,910
COLUSA 94,168 SAN BENITO 137,459
CONTRA COSTA 1,178,218 SAN BERNARDINO 2,161,778
DEL NORTE 100,963 SAN DIEGO 3,210,706
EL DORADO 256,682 SAN FRANCISCO 878,889
FRESNO 1,039,636 SAN JOAQUIN 823,130
GLENN 102,425 SAN LUIS OBISPO 342,774
HUMBOLDT 203,934 SAN MATEO 785,321
IMPERIAL 246,059 SANTA BARBARA 499,634
INYO 93,103 SANTA CLARA 1,882,403
KERN 942,855 SANTA CRUZ 329,271
KINGS 220,012 SHASTA 247,205
LAKE 126,762 SIERRA 78,080
LASSEN 103,878 SISKIYOU 116,809
LOS ANGELES 9,481,457 SOLANO 501,615
MADERA 225,138 SONOMA 535,157
MARIN 320,277 STANISLAUS 599,128
MARIPOSA 102,042 SUTTER 169,572
MENDOCINO 168,349 TEHAMA 132,940
MERCED 346,225 TRINITY 90,284
MODOC 83,289 TULARE 528,108
MONO 87,762 TUOLUMNE 127,741
MONTEREY 488,715 VENTURA 870,207
NAPA 204,898 YOLO 285,965
NEVADA 171,574 YUBA 153,481
*Total 41,728,498

Council Packet - November 4, 2024
Fusion Centers
Region Total Award
SAN FRANCISCO BAY AREA 1,792,050
SACRAMENTO/CENTRAL VALLEY AREA 2,565,000
GREATER LOS ANGELES AREA 2,887,500
SAN DIEGO AREA 2,047,500
ORANGE AREA 835,000
*Total 10,127,050
* SHSP allocations
reflect National Priority Area project adjustments
Urban Areas Security Initiative (UASI)
*A minimum of 35% of UASI funding must be for Law Enforcement Terrorism Prevention Urban Area
Federal
Allocation to
State
Allocation to
UASI State Initiatives
ANAHEIM/SANTA ANA AREA 5,250,000 4,278,750 971,250
BAY AREA 36,493,265 29,742,011 6,751,254
LOS ANGELES/LONG BEACH AREA 66,174,270 53,932,030 12,242,240 RIVERSIDE AREA 3,900,000 3,178,500 721,500
SACRAMENTO AREA 3,800,000 3,097,000 703,000
SAN DIEGO AREA 16,445,560 13,403,131 3,042,429
Total 132,063,095 107,631,422 24,431,673

Council Packet - November 4, 2024
Attachment B ‒ FY 2023 HSGP Timeline | 2023

DHS/FEMA Announcement of 2023 HSGP NOFO

February 13, 2023
Cal OES Application Due to DHS

May 18, 2023
DHS Award to California September 25, 2023
Subrecipient period of performance begins

September 1, 2023
2023 HSGP California Supplement release

October 2023
Subrecipient Workshops

October 2023
Subrecipient Awards (45 days from DHS award) October 2023 Subrecipient Final Applications for FY23 Due to
Cal OES

December 29, 2023
Subrecipient period of performance ends

May 31, 2026
Final Cash Requests due to Cal OES

Within twenty (20) calendar
days after end of grant
Cal OES’s period of performance ends

August 31, 2026

Council Packet - November 4, 2024

Attachment C: FY 2023 HSGP Application Checklist | 2023

Subrecipient: FIPS#:

Program Representative:

Financial Management Forms Workbook:
☐ Grant Award Face Sheet
☐ Authorized Body of 5
☐ Project Ledger
☐ Planning Tab
☐ Organization Tab
☐ Equipment Tab
☐ Training Tab
☐ Exercise Tab
☐ Consultant/C ontractor Tab
☐ Management & Administration Tab
☐ Indirect Cost Tab
☐ Authorized Agent Sheet

Attachments:
☐ Original Counter-Signed Award Letter
☐ Governing Body Resolution (Certified)
☐ Standard Assurances (Signed Originals)
☐ FFATA Certification
☐ Lobbying Certification
☐ Subrecipient Grant Management Assessment Form
☐ Indirect Cost Rate Negotiation Agreement
☐ Personnel Cap Waiver (If Applicable)
☐ Intelligence Analyst(s) Certificates (If Applicable)

UASI Only:
☐ UASI Footprint
☐ UAWG Roster

State Agencies and Tribes Only:
☒ Signature Authority Form (in lieu of Governing Body Resolution)

For Cal OES Use Only
Reviewed by: Date:

Management Approval: Date:

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City of La Verne,City Council
Agenda Report

DATE: November 4, 2024
TO: Honorable Mayor and City Council
FROM: Ken Domer, City Manager
SUBJECT: ADOPTION OF A RESOLUTION APPROVING MEMBERSHIP IN THE

CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY AND

AUTHORIZING THE EXECUTION OF AN ASSOCIATE MEMBERSHIP

AGREEMENT

SUMMARY
This item considers the approval of a Resolution for membership in the California Enterprise Development Authority (CEDA) and authorizes the City Manager to execute the Associate Membership Agreement allowing for the City to serve as a conduit issuer of various types of tax-exempt bond financing for businesses seeking to locate in the City of La Verne, with no financial obligation of the City.

RECOMMENDATION
That the City Council adopt a Resolution titled, "A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF LA VERNE, STATE OF CALIFORNIA, APPROVING ASSOCIATE

MEMBERSHIP IN THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY AND THE EXECUTION OF AN ASSOCIATE MEMBERSHIP AGREEMENT."

DISCUSSION
The California Association for Local Economic Development (“CALED”) provides economic development assistance to member jurisdictions. CALED addresses economic development financing through its financing entity, the California Enterprise Development Authority (CEDA). CEDA is a joint exercise of powers authority (“JPA”) consisting of more than 200 member agencies. CEDA serves as a conduit issuer of various types of tax-exempt bond financings to promote economic development in California, which includes industrial development bonds (“IDBs”), not-for-profit financings, charter school financings, and land- secured debt (Mello Roos and EIFDs) through the CEDA BAND Program. Participation in CEDA will enable businesses located in the City to finance certain capital improvements on a tax-exempt basis (if eligible).

The City is desiring to become an associate member of CEDA in order to assist a new manufacturing facility to be built at Brackett Field, which will have a positive economic impact to the City. As a member, the City would join over 200 other communities in the JPA, which will bolster our ability to attract enhanced business activity. While membership in CEDA does not itself authorize the City nor any business to issue bonds, in certain circumstances, businesses and not-for-profit agencies are able to issue tax-exempt bonds. Under the federal Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982, tax-exempt bonds must be authorized and issued through the government agency in which a business seeking to utilize the financing is

Council Packet - November 4, 2024
Adoption of a Resolution Approving Membership in the California Enterprise Development Authority and Authorizing the Execution of an Associate Membership Agreement, Page 2

located. Many municipalities use a JPA such as CEDA to assist in the issuance of tax-exempt debt. The City has conducted several TEFRA hearings in the past, and as recently as April 2020, held a TEFRA hearing on behalf of Brethren Hillcrest Homes through a different financing authority.

CEDA will be the conduit issuer of the tax-exempt bonds for a proposed project which will be considered during a Public Hearing to be held after consideration of this item. As with all conduit debt, including industrial development bonds, the City will not be legally or financially responsible for making any debt service payments, nor to pay any fees related to the financing, nor have any administrative responsibility for matters related to the bonds. The Financing Team as organized by CEDA will manage all required continuing disclosure, administration, and compliance matters related to the bonds thereafter. Their costs will be primarily paid from the proceeds of the bond sale. There is also no cost to being a member of CEDA.

The proposed project is a new manufacturing facility for Aeros Corp. (“Aeros”), located at 1615 McKinley Avenue at Brackett Field. The bonds will be primarily used to fund the design, construction, and equipment for an 87,000-square-foot (zero-emission) airship manufacturing and assembly facility at Brackett Field. The project is described more fully in the Public Hearing agenda report.

FISCAL ANALYSIS
No financial impact. Aeros has provided the City with an initial $2,000 deposit to pay for any associated legal fees and administrative costs.

ENVIRONMENTAL ANALYSIS
Not applicable.

LEGAL REVIEW
The City Attorney and external bond counsel have reviewed and approved of this item.

ATTACHMENTS

1. Reso No. 24-XX CEDA Associate Membership (1)

2. CEDA City of La Verne Associate Membership Agreement AMA

Council Packet - November 4, 2024
4165-9908-4627.2
RESOLUTION NO. 24-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE,

STATE OF CALIFORNIA, APPROVING ASSOCIATE MEMBERSHIP IN

THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY AND

THE EXECUTION OF AN ASSOCIATE MEMBERSHIP AGREEMENT
WHEREAS, the City of La Verne (the “City”) is a municipal corporation duly organized and existing under the Constitution and the laws of the State of California; and WHEREAS, the City, upon authorization of the City Council (the “City Council”), may pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, commencing with Section 6500 (the “JPA Law”) enter into a joint exercise of powers agreement with one or more other public agencies pursuant to which such contracting parties may jointly exercise any power common to them; and
WHEREAS, the Cities of Selma, Lancaster and Eureka have entered into a Joint Exercise of Powers Agreement, dated June 1, 2006 (the “Agreement”), establishing the California Enterprise Development Authority (the “Authority”) and prescribing its purposes and powers; and WHEREAS, in furtherance of the City’s economic development efforts, the City desires to become an associate member of the Authority; and
WHEREAS, under the JPA Law and the Agreement, the Authority is a public entity separate and apart from the parties to the Agreement and the debts, liabilities and obligations of the Authority will not be the debts, liabilities or obligations of the City or the other members of the Authority; and
WHEREAS, the form of associate membership agreement (the “Associate Membership Agreement”) between the City and the Authority has been filed with the City, and the members of the City Council, with the aid of the City’s staff, have reviewed the Associate Membership Agreement;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of La Verne, hereby finds, determines and declares as follows:

Section 1. Associate Membership in the Authority. The City Council hereby approves associate membership by the City in the Authority.

Section 2. Approval of Associate Membership Agreement. The City Council hereby approves the form of, and authorizes the Mayor, the City Manager or any designee of such officers, to execute the Associate Membership Agreement, subject to the approval as to form from the City Attorney’s Office, and authorizes the Deputy City Clerk to attest to such signature, in substantially the form on file with the City Clerk, together with any changes therein deemed advisable by the official signing the Associate Membership Agreement.

Council Packet - November 4, 2024
2 4165-9908-4627.2
Section 3. Official Action. The Mayor, the City Manger, the City Clerk and other officers and officials of the City, are hereby authorized and directed to take all actions and do all things necessary with respect to associate membership in the Authority including but not limited to the execution and delivery of any and all agreements, certificates, instruments and other documents which are necessary to effectuate the purposes of this resolution.

Section 4. Effective Date. This Resolution shall take effect upon its adoption by the City Council.

RESOLVED FURTHER, the Deputy City Clerk of the City of La Verne shall certify the adoption of this resolution, and thenceforth and thereafter the same shall be in full force and effect. *****
PASSED, APPROVED AND ADOPTED this 4th day of November, 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

By_______________________________________
Ken Domer, City Manager
Attest:

Debra Fritz, Deputy City Clerk
Approved as to form:

By
Kimberly Hall Barlow, City Attorney

Council Packet - November 4, 2024
3 4165-9908-4627.2

CERTIFICATE OF THE CITY CLERK
I, Debra Fritz, Deputy City Clerk of the City of La Verne, hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at the meeting of the City Council of the City of La Verne duly and regularly held in La Verne, California, on _________ __, 2024, of which meeting all of the members of said City Council had due notice.

I further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect.

IN WITNESS WHEREOF, I have executed this certificate and affixed the seal of the City of La Verne hereto this ____ day of __________, 2024.
____________________________________
Debra Fritz, Deputy City Clerk

Council Packet - November 4, 2024
4872-0572-1830.1

ASSOCIATE MEMBERSHIP AGREEMENT
by and between the

CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY
and the

CITY OF LA VERNE, CALIFORNIA
THIS ASSOCIATE MEMBERSHIP AGREEMENT (this “Associate Membership Agreement”), dated as of ______________, 2024 by and between CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY (the “Authority”) and the CITY OF LA VERNE, CALIFORNIA, a municipal corporation duly organized and existing under the laws of the State of California (the “City”);
WITNESSETH:

WHEREAS, the Cities of Selma, Lancaster and Eureka (individually, a “Member” and collectively, the “Members”), have entered into a Joint Exercise of Powers Agreement, dated as of June 1, 2006 (the “Agreement”), establishing the Authority and prescribing its purposes and powers; and
WHEREAS, the Agreement designates the Executive Committee of the Board of Directors and the President of the California Association for Local Economic Development as the Board of Directors of the Authority; and
WHEREAS, the Authority has been formed for the purpose, among others, to assist for profit and nonprofit corporations and other entities to obtain financing for projects and purposes serving the public interest; and
WHEREAS, the Agreement permits any other local agency in the State of California to join the Authority as an associate member (an “Associate Member”); and WHEREAS, the City desires to become an Associate Member of the Authority; and WHEREAS, City Council of the City has adopted a resolution approving the Associate Membership Agreement and the execution and delivery thereof; and WHEREAS, the Board of Directors of the Authority has determined that the City should become an Associate Member of the Authority;
NOW, THEREFORE, in consideration of the above premises and of the mutual promises herein contained, the Authority and the City do hereby agree as follows:

Council Packet - November 4, 2024
2 4872-0572-1830.1
Section 1. Associate Member Status. The City is hereby made an Associate Member of the Authority for all purposes of the Agreement and the Bylaws of the Authority, the provisions of which are hereby incorporated herein by reference. From and after the date of execution and delivery of this Associate Membership Agreement by the City and the Authority, the City shall be and remain an Associate Member of the Authority.

Section 2. Restrictions and Rights of Associate Members. The City shall not have the right, as an Associate Member of the Authority, to vote on any action taken by the Board of Directors or by the Voting Members of the Authority.

Section 3. Effect of Prior Authority Actions. The City hereby agrees to be subject to and bound by the Agreement and the Bylaws of the Authority.

Section 4. No Obligations of Associate Members. The debts, liabilities and obligations of the Authority shall not be the debts, liabilities and obligations of the City.

Section 5. Execution of the Agreement. Execution of this Associate Membership Agreement shall satisfy the requirements of the Agreement and Article XII of the Bylaws of the Authority for participation by the City in all programs and other undertakings of the Authority.

Council Packet - November 4, 2024
3 4872-0572-1830.1
IN WITNESS WHEREOF, the parties hereto have caused this Associate Membership Agreement to be executed and attested by their proper officers thereunto duly authorized, on the day and year first set forth above.

CALIFORNIA ENTERPRISE

DEVELOPMENT AUTHORITY
By
Gurbax Sahota
Chair of the Board of Directors
Attest:

By
Michelle Stephens, Assistant Secretary

CITY OF LA VERNE, CALIFORNIA
By
Tim Hepburn, Mayor
Attest:

By
Debra Fritz, Deputy City Clerk
Approved as to form:

By
Kimberly Hall Barlow, City Attorney

Council Packet - November 4, 2024
City of La Verne,City Council
Agenda Report

DATE: November 4, 2024
TO: Honorable Mayor and City Council
FROM: Meg McWade, Public Works Director
SUBJECT: AUTHORIZE DONATION OF SURPLUS WOOD FROM SIGNIFICANT CITY

TREES AND SURPLUS STREET SIGNS TO LA VERNE HISTORICAL

SOCIETY

SUMMARY
This administrative authority allows for the donation of surplus wood from City trees and surplus street signs to enhance the City's partnership with the La Verne Historical Society (LVHS) by providing preservation and funding opportunities which further LVHS and City goals.

RECOMMENDATION
That the City Council authorize the City Manager to administratively approve donations of surplus wood from City trees and surplus City street signs to the La Verne Historical Society.

DISCUSSION
The City of La Verne is proposing the donation of surplus street signs and wood from significant trees, as determined by the City, to the La Verne Historical Society (LVHS) for creative reuse and fundraising purposes. This initiative seeks to support LVHS by providing these surplus materials for artistic carving or other reuse projects and helping to raise funds for the organization’s ongoing activities. With City Council approval, the City Manager, or their designated representative, will have the authority to administratively declare such items as surplus and allocate them directly to LVHS.

The transfer of these materials to the Historical Society will occur solely when the City has determined that the items are available for donation, and when LVHS has the capacity to accept and inventory them. No charge will be levied for the wood or street signs, and any proceeds generated from these items will directly benefit LVHS. Founded in 1969 and incorporated in 1973, the La Verne Historical Society is dedicated to fostering and promoting the history and culture of La Verne and its neighboring areas. Through the collection, classification, and sharing of historical information, as well as the preservation of historic sites, LVHS provides lasting public benefits to the community. Since 1984, LVHS volunteers have created newsletters, marked historic residences with plaques, and introduced "Hands-On History" programming in local elementary schools.

Recently, LVHS expanded its impact within the community through collaborations, such as with the San Dimas Historical Society, and through highly visible events like the Fourth of July parade. Notably, the organization hosted popular initiatives such as "Get on the Bus" tours and home visits, fostering a growing local interest in La Verne’s history. The Society’s new motto, "Preserving Old La Verne’s Environment: Making History for the Future," reflects its

Council Packet - November 4, 2024
Authorize Donation of Surplus Wood from Significant City Trees and Surplus Street Signs to La Verne Historical Society, Page 2

commitment to safeguarding La Verne’s historical legacy while adapting to modern preservation needs. Originating from efforts to protect remnants of La Verne's "orange grove" era, LVHS continues to strengthen community bonds through educational programs, tours, and lectures that honor the city’s rich past.

This donation initiative aligns with the City’s objectives to aid LVHS in preserving La Verne’s history while sustainably managing surplus resources. By repurposing city materials, the program invites residents and visitors alike to connect with La Verne’s heritage in meaningful ways, supporting LVHS’s educational and cultural programming for future generations.

FISCAL ANALYSIS
This donation of surplus street signs and wood from significant trees has no direct financial impact to the City. By repurposing these items, the City reduces potential disposal expenses and contributes to sustainable resource management. The initiative indirectly supports the La Verne Historical Society’s fundraising efforts, fostering community engagement with local history and heritage preservation at no additional expense to the City.

ENVIRONMENTAL ANALYSIS
Not applicable.

LEGAL REVIEW
This report has been reviewed by the City Attorney's Office.

ATTACHMENTS
None

Coordinated with:

Colin Purdy, Maintenance Manager

Council Packet - November 4, 2024
City of La Verne,City Council
Agenda Report

DATE: November 4, 2024
TO: Honorable Mayor and City Council
FROM: JR Ranells, Assistant City Manager
SUBJECT: AUTHORIZING THE EXECUTION OF A SIDE LETTER AGREEMENT

AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY OF LA VERNE AND THE LA VERNE CITY EMPLOYEES’ ASSOCIATION

REGARDING UPCOMING HOLIDAY CLOSURES

SUMMARY
The proposed side letter agreement to the Memorandum of Understanding (MOU) with the La Verne City Employees’ Association (LVCEA) will formalize City Council direction to close non- emergency public facilities in conjunction with the upcoming holiday season of Christmas and New Year’s Day.

RECOMMENDATION
That the City Council:

1. Authorize the City Manager to execute a Side Letter Agreement amending the Memorandum of Understanding between the City of La Verne and the La Verne City Employees’ Association; and

2. Authorize the Closure of City Hall to the public on December 25, December 26, December 30, and December 31, 2024, as well as on January 1 and January 2, 2025; and

3. Authorize the Closure of the Police Department Records Division to the public on December 25, December 26, and December 27, 2024, as well as on January 1, January 2, and January 3, 2025.

DISCUSSION
Historically, La Verne City Hall, City Maintenance Yard, and Police Department Records Division employees have observed the holidays of Christmas Day and New Year’s Day. Based on prior year understanding, City facilities experience lighter than normal visitors desiring assistance/services during the holidays and greater demand by employees to utilize time off. In review of some of our neighboring cities, such as Pomona, San Dimas, and Claremont, those cities close their city halls and public facilities for extended time during the holiday season. This year, both holidays fall on a Wednesday, thereby creating a situation where employees would be required to return for just one day of work, if open, providing a unique opportunity to close La Verne facilities when they are substantially less busy and provide additional time off for City employees. Employees will utilize existing leave banks such as vacation leave and therefore will not create new expenses in conjunction with the proposed closure.

Council Packet - November 4, 2024
Authorizing the Execution of a Side Letter Agreement Amending the Memorandum of Understanding Between the City of La Verne and the La Verne City Employees’ Association Regarding Upcoming Holiday Closures, Page 2

It is important to note that certain public services and functions will continue, such as necessary inspections, permitting processes, and, of course, Police and Fire services. Online services such as Utility Billing, Building Permits, Recreation Sign-ups, and the 24-Hour City Hall application will also still be available. In instances where critical functions have been identified by Departments that must continue, employees will be approved to work on a case by case basis.

To minimize any potential negative impacts on residents related to not being informed of the closures, signage will be posted at all impacted facilities, a press release will be issued, and notices will be posted on the City’s website and social media channels.

As per State law, the City is required to meet and confer with recognized employee groups over wages, benefits, and working conditions. City staff engaged and received support for the closures from both recognized employee groups and unrepresented employees. To account for the time off, employees will be voluntarily utilizing their personal leave banks during the closures.

It is anticipated that the multiple-day closures will only take place this upcoming holiday season and the City would return to traditional hours next year.

FISCAL ANALYSIS
No additional appropriations will be needed for the recommended action(s). Existing employee leave banks will be utilized during the closure days, which already obligate the City to pay for approved time off. New and or additional paid holidays are not being provided.

ENVIRONMENTAL ANALYSIS
Not applicable.

LEGAL REVIEW
This report was reviewed and approved by the City Attorney.

ATTACHMENTS

1. Draft LVCEA Side Letter Holiday Closure

Council Packet - November 4, 2024

SIDE LETTER AGREEMENT TO MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LA VERNE AND THE LA VERNE CITY EMPLOYEES’ ASSOCIATION

The City of La Verne (“City”) and the members of the La Verne City Employees’ Association (“Association”) entered into a Memorandum of Understanding (MOU) effective July 18, 2023 – June 30, 2025.

The City and Association are set to begin good faith negotiations on a successor MOU. The timing of the Holiday Closure falls prior to the conclusion of the current MOU. Therefore, based on mutual interest, the City and Association would like to enter into a side letter agreement to address the 2024/25 Holiday Closure(s).

Pursuant to the provisions of the Meyers-Milias-Brown Act, this Side Letter of Agreement is entered into on this November 5, 2024, between the City and the Association.

Except as provided herein, all wages, hours and other terms and conditions of employment presently provided to the Association and contained in the MOU shall remain in full force and effect.

The City and the Association have met and conferred in good faith concerning the terms and conditions of this Side Letter Agreement and its implementation and now therefore agree that Article 14 of the current MOU effective July 2023 will be amended as follows by adding:

A. Holiday Closure – December 25, 2024, through January 3, 2025.

The City of La Verne will observe the following holidays as part of its annual holiday closure:

1. December 24, 2024, as a designated holiday for Yard employees.

2. December 25, 2024 (Christmas Day) and January 1, 2025 (New Year's Day) as City- wide holidays.

In addition to the aforementioned holidays, pursuant to City Council direction, the City will implement a holiday closure of City Hall, City Yard, and Police Records from December 25, 2024, through January 3, 2025. The City will resume normal operations at all City facilities on Monday, January 6, 2025.

Use of Accrued Leave. Association members will be required to use accrued leave to cover the four additional closure days (December 26, 30, 31, 2024 and January 2nd, 2025), during which City Hall will be closed. Employees may utilize the following accrued leave types to cover these additional days: vacation leave, floating holidays, and/or compensatory time.

Employees who do not have sufficient accrued leave to cover these four additional days from vacation, floating holiday, and compensatory time banks may be permitted to carry a negative vacation leave balance, subject to the following conditions:

1. All previously accrued vacation has been exhausted

2. The negative leave balance will be offset by future accruals.

3. Any employee who separates from City employment while holding a negative leave balance shall have the outstanding amount deducted from their final paycheck. ** Employees who do not have sufficient accrued leave above may use up to the equivalent of two (2) days of sick leave to offset the negative impact to vacation leave accrual(s)

Special Accommodations for Essential Personnel. The City recognizes that certain positions and responsibilities cannot accommodate the full holiday closure due to the necessity of providing essential services. Department directors will work with individual employees and divisions to determine equitable alternatives for those employees.

Council Packet - November 4, 2024
For City Yard employees, modified schedules and standby arrangements have already been developed and agreed upon to ensure minimum staffing levels in the following divisions: Water Production & Operations, Parks, Streets/Maintenance, Mechanics Shop.

For the Police Records Division, operations will continue as follows:

1. The office will remain open on Monday, December 23, 2024, and Tuesday, December 24, 2024.

2. The office will also be open on Monday, December 30, 2024, and Tuesday, December 31, 2024.

3. The office will be closed from Wednesday through Friday for both holiday weeks.

This agreement outlines the expectations and responsibilities of the City of La Verne employees regarding the holiday closure. All employees and management are expected to comply with the terms herein.

DATED ___________________________ DATED ___________________________

LA VERNE CITY EMPLOYEES’ ASSOC. CITY OF LA VERNE

By _______________________________ By _______________________________ LVCEA Representative Ken Domer, City Manager

By _______________________________ By _______________________________

LVCEA Representative JR Ranells, Asst. City Manager

Council Packet - November 4, 2024
City of La Verne,City Council
Agenda Report

DATE: November 4, 2024
TO: Honorable Mayor and City Council
FROM: Ken Domer, City Manager
SUBJECT: RESOLUTION APPROVING THE ISSUANCE OF TAX-EXEMPT DEBT IN THE

FORM OF INDUSTRIAL DEVELOPMENT BONDS ISSUED BY THE

CALFORNIA ENTERPRISE DEVELOPMENT AUTHORITY FOR FINANCING

OF MANUFACTURING FACILITIES IN THE CITY FOR THE BENEFIT OF AEROS CORP.

SUMMARY
For the purposes of satisfying certain requirements of the Tax and Equity Fiscal Responsibility Act of 1982 (“TEFRA”) and the Internal Revenue Code of 1986 (the “Code”), a public hearing is to be conducted by the City Council to hear and consider information concerning the issuance of tax-exempt debt in the form of Industrial Development Bonds (“IDBs” or “Bonds”) issued by the California Enterprise Development Authority (“CEDA”) in an amount not to exceed $10,000,000 to support Aeros Corp. (“Aeros”) in financing the Aeros manufacturing facility located at Brackett Field in the City of La Verne (the “Project”).

RECOMMENDATION
That the City Council conduct a public hearing to satisfy the requirements of the Tax and Equity Fiscal Responsibility Act of 1982 and the Internal Revenue Code of 1986, and upon conclusion, adopt a Resolution titled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA

VERNE, STATE OF CALIFORNIA, APPROVING THE ISSUANCE BY CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY OF NOT TO EXCEED $10,000,000

AGGREGATE PRINCIPAL AMOUNT OF THE AUTHORITY'S REVENUE BONDS FOR THE BENEFIT OF AEROS CORP. AND/OR A RELATED ENTITY FOR THE PURPOSE OF

FINANCING, REFINANCING AND/OR REIMBURSING THE COST OF MANUFACTURING

FACILITIES, PROVIDING THE TERMS AND CONDITIONS FOR SUCH BONDS AND OTHER MATTERS RELATING THERETO HEREIN SPECIFIED."

DISCUSSION
To issue the IDBs that will fund the Project, the City must comply with TEFRA, the Code, and related federal regulations, which require the elected representatives having jurisdiction over the area in which the Project is located to (1) hold a public hearing after 7 days’ notice (such notice was published in The Daily Bulletin on October 28, 2024), and (2) adopt a resolution approving the issuance of tax-exempt obligations as part of the TEFRA process.

The TEFRA approval process does not authorize any additional debt for the City. Neither the faith and credit nor the taxing power of the City, the State of California (the “State”) or any other political corporation, subdivision or agency of the State is pledged to the payment of the principal of, premium, if any, or interest on, the Bonds, nor shall the City, the State or any other

Council Packet - November 4, 2024
Resolution Approving the Issuance of Tax-Exempt Debt in the form of Industrial Development Bonds Issued by the Calfornia Enterprise Development Authority for Financing of Manufacturing Facilities in the City for the Benefit of Aeros Corp., Page 2

political corporation, subdivision or agency of the State be liable or obligated to pay the principal of, premium, if any, or interest on, the Bonds.

The public hearing and adoption of the attached Resolution will satisfy the TEFRA and Code requirements.

The proposed Project is a new manufacturing facility for Aeros Corp. (“Aeros”), located at 1615 McKinley Avenue at Brackett Field. The Bonds will be primarily used to fund the design, construction, and equipment for an 87,000-square-foot (zero-emission) airship manufacturing and assembly facility at Brackett Field Airport.

Construction is scheduled to commence after the Bonds are issued in December 2024, with an 18-month construction timeline. Operations will be divided between engineering at the Aeros headquarters in Los Angeles and manufacturing, assembly, and testing at the new facility in La Verne.

The facility will be fully financed through the issuance of tax-exempt IDBs. This transaction requires the City to join CEDA, which will be the conduit issuer of the tax-exempt bonds for the proposed Project. The associate membership agreement between the City and CEDA was considered separately from this item during this same meeting as part of the Consent Calendar.

Key aspects of the Project include:
• Facility Construction and Equipment Installation: Site preparation, infrastructure investment, and fabrication of a pre-engineered structure tailored to the facility's needs. • Advanced Manufacturing Systems: Acquisition of automated systems to improve manufacturing efficiency, such as composite systems, fastening systems, and assembly equipment.
• Shared Operations: Airship manufacturing and flight testing at the La Verne facility, while engineering remains at the Los Angeles location.

The airships will be used as mobile hubs for Uncrewed Parcel Delivery Shuttles (“UPDS”), offering fast, flexible delivery, including to remote regions. This approach aims to streamline logistics, reduce delivery times, and lower carbon emissions compared to traditional ground- based delivery methods.

The development of an advanced manufacturing facility in La Verne aligns with the City's goals of fostering innovation, promoting sustainability, and attracting high-tech industries that offer high-wage employment opportunities.

FISCAL ANALYSIS
This City is not liable for any financial matters related to the financing. Aeros has provided the City with an initial $2,000 deposit to pay for associated legal and administrative costs, including the public noticing.

ENVIRONMENTAL ANALYSIS

Council Packet - November 4, 2024
Resolution Approving the Issuance of Tax-Exempt Debt in the form of Industrial Development Bonds Issued by the Calfornia Enterprise Development Authority for Financing of Manufacturing Facilities in the City for the Benefit of Aeros Corp., Page 3

Section 15061(b)(3) of the CEQA Guidelines provides that CEQA only applies to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The activity at issue is the adoption of a resolution approving the issuance of bonds by the California Enterprise Development Authority to finance the design, construction, and equipment for an 87,000 square foot airship manufacturing and assembly facility at Brackett Airport. The adoption of the resolution is solely for the purpose of satisfying the requirements of TEFRA. The City Council’s action does not involve the approval of any physical development or activity that would have the potential for causing a significant effect on the environment. Therefore, the proposed action does not constitute approval of a project under CEQA and is not subject to CEQA or the City of La Verne's environmental guidelines.

LEGAL REVIEW
The City Attorney and external bond counsel have reviewed and approved of this report.

ATTACHMENTS

1. Reso No. 24-XX Aeros CEDA Issuance

2. Proof of Posting Aeros TEFRA Notice

Council Packet - November 4, 2024
4161-1280-7507.3
RESOLUTION NO. 24-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE,

STATE OF CALIFORNIA, APPROVING THE ISSUANCE BY

CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY OF NOT TO
EXCEED $10,000,000 AGGREGATE PRINCIPAL AMOUNT OF THE
AUTHORITY'S REVENUE BONDS FOR THE BENEFIT OF AEROS CORP.

AND/OR A RELATED ENTITY FOR THE PURPOSE OF FINANCING,

REFINANCING AND/OR REIMBURSING THE COST OF

MANUFACTURING FACILITIES, PROVIDING THE TERMS AND

CONDITIONS FOR SUCH BONDS AND OTHER MATTERS RELATING

THERETO HEREIN SPECIFIED
WHEREAS, Aeros Corp. and/or a related entity (collectively, the “Borrower”), have submitted and the California Enterprise Development Authority (the “Authority”) has accepted, an application requesting the Authority to issue its tax-exempt and/or taxable revenue Bonds in an aggregate principal amount not to exceed $10,000,000 (the “Bonds”) for the benefit of the Borrower pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State, (commencing with Section 6500) (the “Act”) the proceeds of which will be used in part to finance, refinance and/or reimburse the Borrower for the costs of manufacturing facilities (the “Facilities”) and the payment certain costs of issuance in connection with the Bonds; and WHEREAS, the issuance of the Bonds must be approved by the governmental unit on behalf of which the Bonds are issued and a governmental unit having jurisdiction over the territorial limits in which the Facilities are located pursuant to the public approval requirement of Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”); and WHEREAS, the Facilities are located within the territorial limits of City of La Verne (the “City”) and the City Council of the City (the “City Council”) is the elected legislative body of the City; and
WHEREAS, the Facilities are expected to provide significant benefits to the residents of the City through the creation of employment opportunities for residents of the City over the long term; and
WHEREAS, the Authority and the Borrower have requested that the City Council approve the issuance of the Bonds by the Authority and the financing of the Facilities with the proceeds of the Bonds pursuant to Section 147(f) of the Code; and
WHEREAS, the Authority’s issuance of the Bonds will result in a more economical and efficient issuance process because of the Authority’s expertise in the issuance of conduit revenue bonds; and

Council Packet - November 4, 2024
2 4161-1280-7507.3
WHEREAS, it is intended that this Resolution shall comply with the public approval requirements of Section 147(f) of the Code; provided, however, that this Resolution is neither intended to nor shall it constitute an approval by the City Council of the Facilities for any other purpose; and
WHEREAS, a public hearing was held by the City Council on November 4, 2024, at the meeting which commenced at the hour of 6:30 p.m., at the City of La Verne, City Hall, located at 3660 D Street, La Verne, California 91750, following a duly published notice thereof in a newspaper of general circulation in the City of La Verne, and all persons desiring to be heard have been heard.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the City Council of the City as follows:

Section 1. The City Council hereby finds and determines that all of the recitals are true and correct. The City Council hereby approves the issuance of the Bonds by the Authority, from time to time pursuant to a plan of finance, which Bonds may be tax-exempt and/or taxable as approved by the Authority in its resolution, in an amount not to exceed $10,000,000 to finance the costs of the Facilities. This resolution shall constitute approval of the issuance of the Bonds within the meaning of Section 147(f) of the Code and shall constitute the approval of the issuance of the Bonds within the meaning of the Act; provided, however, that this Resolution shall not constitute an approval by the City Council of the Facilities for any other purpose.

Section 2. All actions heretofore taken by the officers, employees and agents of the City with respect to the approval of the Bonds are hereby approved, confirmed and ratified, and the officers and employees of the City and their authorized deputies and agents are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all certificates and documents which they or bond counsel may deem necessary or advisable in order to consummate the Bonds and otherwise to effectuate the purposes of this Resolution.

Section 3. This Resolution shall take effect from and after its adoption.

Council Packet - November 4, 2024
3 4161-1280-7507.3
RESOLVED FURTHER, the Deputy City Clerk of the City of La Verne shall certify the adoption of this resolution, and thenceforth and thereafter the same shall be in full force and effect. *****
PASSED, APPROVED AND ADOPTED this 4th day of November, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Tim Hepburn, Mayor
Attest:

Debra Fritz, Deputy City Clerk

Council Packet - November 4, 2024
4 4161-1280-7507.3

CERTIFICATE OF THE CITY CLERK
I, Debra Fritz, Deputy City Clerk of the City of La Verne, hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at the meeting of the City Council of the City of La Verne duly and regularly held in La Verne, California, on November 4, 2024, of which meeting all of the members of said Board had due notice.

I further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect.

IN WITNESS WHEREOF, I have executed this certificate and affixed the seal of the City of La Verne hereto on ___________, 2024.

By______________________________________
Debra Fritz, Deputy City Clerk

Council Packet - November 4, 2024
TEFRA Public Hearing 11-04-24 - Page 1 of 1
3200 Guasti Rd. Suite 100
Ontario, California 91761
(909) 987-6397
[email protected]
City of La Verne
3660 D Street
La Verne, California 91750
Account Number: 5021645
Ad Order Number: 0011699621
Customer's Reference/PO Number:

Publication: Inland Valley Daily Bulletin - LA
Publication Dates: 10/28/2024
Total Amount: $651.29
Payment Amount: $0.00
Amount Due: $651.29
Notice ID: m4dhdYwnPFOAFlM9OnAg
Invoice Text:

NOTICE OF PUBLIC HEARING WITH RESPECT TO THE ISSUANCE OF TAX-

EXEMPT AND/OR TAXABLE BONDS BY THE CALIFORNIA ENTERPRISE

DEVELOPMENT AUTHORITY FOR THE PURPOSE OF FINANCING,

REFINANCING AND/OR REIMBURSING THE COST OF MANUFACTURING FACILITIES FOR THE BENEFIT OF AEROS CORP and/or a related or successor entity NOTICE IS HEREBY GIVEN that at 6:30 p.m. on November 4, 2024, or as soon thereafter as the matter may be heard, at La Verne City Hall – Council Chambers, 3660 D Street, La Verne, California 91750 , the City Council of the City of La Verne (the “City Council”) will conduct a public hearing (the “Public Hearing”) at which the City Council will hear and consider information concerning the issuance, from time to time, pursuant to a plan of finance, of one or more series of tax-exempt and/or taxable Bonds by the California Enterprise Development Authority (the “Issuer”) in an aggregate principal amount not to exceed $10,000,000 (the “Bonds”) for the benefit of Aeros Corp and/or a related or successor entity (the “Borrower”).

The Issuer will loan the proceeds of the Bonds to the Borrower pursuant to one or more loan or Loan Agreements (the “Loan Agreement”). The proceeds of the Bonds loaned to the Borrower will be applied to finance, refinance and/or reimburse the Borrower for its manufacturing facility located at 1615 McKinley Avenue, La Verne, CA 91750 , and for acquiring and installing manufacturing equipment at such location (collectively, the “Facilities”) and (2) the payment of certain costs of issuance in connection with the Bonds. The Facilities will be used for manufacturing purposes.

The Bonds will be paid entirely from repayments by the Borrower under the Loan

Council Packet - November 4, 2024
TEFRA Public Hearing 11-04-24 - Page 1 of 1
Inland Valley Daily Bulletin - LA
3200 Guasti Rd. Suite 100
Ontario, California 91761
(909) 987-6397
0011699621
City of La Verne
3660 D Street
La Verne, California 91750

PROOF OF PUBLICATION
(2015.5 C.C.P.)

STATE OF CALIFORNIA
County of Los Angeles
I am a citizen of the United States, I am over the age of eighteen years, and not a party to or interested in the above-entitled matter. I am the principal clerk of the
printer of Inland Valley Daily Bulletin - LA, a newspaper of general circulation printed and published daily for the City of Pomona, County of Los Angeles, and which
newspaper has been adjudged a newspaper of general
circulation by the Superior Court of the County of Los
Angeles, State of California, on the date of June 15,
1945, Decree No. Pomo C-606. The notice, of which the
annexed is a true printed copy, has been published in
each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit:
10/28/2024
I certify (or declare) under the penalty of perjury that the foregoing is true and correct.

Dated at Ontario, California
On this 28th day of October, 2024.
______________________________
Signature
*Inland Valley Daily Bulletin - LA circulation includes the following cities: [UNKNOWN LIST]

Council Packet - November 4, 2024