STAFF REPORT
Meeting Date:
July 21, 2026
CONSENT
12 SUBJECT: AUTHORIZATION TO ACCEPT AND EXECUTE A GRANT AGREEMENT WITH THE CALIFORNIA HIGHWAY PATROL FOR THE FISCAL YEAR 2026-2027
CANNABIS TAX FUND GRANT PROGRAM AND APPROPRIATION OF FUNDS RECOMMENDATION: It is recommended that the City Council:
1. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, AUTHORIZING THE CITY MANAGER, OR DESIGNEE,
TO EXECUTE A GRANT AGREEMENT AND ALL RELATED DOCUMENTS WITH THE CALIFORNIA HIGHWAY PATROL FOR THE FISCAL YEAR 2026-2027 CANNABIS TAX FUND GRANT PROGRAM”, thereby satisfying the governing body authorization required by California Code of Regulations, Title 13, Division 2, Chapter 13, Section 1890.13(g);
2. Accept the California Highway Patrol Fiscal Year 2026-2027 Cannabis Tax Fund Grant Program award in the amount of $475,800;
3. Approve a budget adjustment to increase grant revenues and expenditures by $475,800 (1332102- 45100-G2701 and 1332102-79999-G2701), respectively; and
4. Authorize the City Manager, or designee, to execute any subsequent grant-related documents and amendments that do not increase the City's financial obligation or materially alter the approved scope of work.
SUMMARY OF THE MATTER
The California Highway Patrol (CHP) has conditionally awarded the Laguna Beach Police Department $475,800 through the Fiscal Year 2026-2027 Cannabis Tax Fund Grant Program (CTFGP). The grant will fund a comprehensive impaired-driving enforcement, education, prevention, and training program during the period of July 1, 2026, through June 30, 2027.
The CHP requires authorization from the City's governing body before the Grant Agreement may be executed. Approval of the attached Resolution will satisfy this requirement and authorize the City Manager, or designee, to execute the Grant Agreement and administer the grant on behalf of the City.
The grant is fully funded by the State of California and requires no local matching funds.
FUND ACCOUNT AMOUNT DESCRIPTION
OTHER GRANTS FUND
1332102-45100-
G2701 (475,800)
26 CHP CANNABIS TAX GRANT
REVENUE
OTHER GRANTS FUND
1332102-79999-
G2701 475,800
26 CHP CANNABIS TAX GRANT
EXPENDITURE
NET APPROPRIATION: -
AUTHORIZATION TO ACCEPT AND EXECUTE A GRANT AGREEMENT WITH THE CALIFORNIA HIGHWAY PATROL FOR THE FISCAL YEAR 2026-2027 CANNABIS TAX
FUND GRANT PROGRAM AND APPROPRIATION OF FUNDS
July 21, 2026
BACKGROUND
The California Highway Patrol administers the Cannabis Tax Fund Grant Program pursuant to California Revenue and Taxation Code Section 34019. The program provides financial assistance to local law enforcement agencies for education, prevention, and enforcement activities designed to reduce impaired driving involving alcohol, cannabis, and other drugs.
The Laguna Beach Police Department submitted a competitive grant application requesting funding to expand DUI enforcement, increase community education, improve officer training, and purchase specialized traffic safety equipment.
On June 30, 2026, the California Highway Patrol notified the City that the Department had been conditionally awarded $475,800 in grant funding. As a condition of the award, the CHP requires documentation from the City's governing body authorizing execution of the Grant Agreement before the award may be finalized.
Laguna Beach continues to experience significant traffic safety challenges despite having fewer than 23,000 permanent residents. The City welcomes more than six million visitors annually, placing substantial demands on a roadway system constrained by narrow coastal streets and canyon roadways.
During 2025, Laguna Beach experienced:
• 609 traffic collisions;
• 171 speed-related collisions resulting in 79 injuries; • 63 DUI-related collisions resulting in 32 injuries;
• 166 injury collisions causing 226 injuries; and
• Two fatal traffic collisions.
These statistics demonstrate the continued need for enhanced impaired-driving enforcement and education efforts.
DISCUSSION
The proposed grant will significantly enhance the Police Department's ability to reduce impaired driving through a comprehensive strategy combining education, enforcement, prevention, officer training, and specialized equipment.
Grant-funded activities include:
• Six (6) DUI Checkpoints;
• Twenty-six (26) DUI Saturation Patrols;
• Twelve (12) "Know Your Limits" community education events; • Purchase of one commercial-grade DUI Operations Van to replace our current DUI trailer purchased in 2013 via OTS grant funds;
• Purchase of four radar/message boards capable of displaying impaired-driving messaging while collecting vehicle speed data; and
AUTHORIZATION TO ACCEPT AND EXECUTE A GRANT AGREEMENT WITH THE CALIFORNIA HIGHWAY PATROL FOR THE FISCAL YEAR 2026-2027 CANNABIS TAX
FUND GRANT PROGRAM AND APPROPRIATION OF FUNDS
July 21, 2026
• Officer training to improve the detection and investigation of alcohol- and drug-impaired drivers.
These activities directly support the City's traffic safety goals and complement existing grant-funded enforcement efforts. The radar/message boards will serve as long-term traffic safety assets by collecting traffic data, displaying educational and enforcement messaging, and supporting future traffic calming initiatives. The commercial-grade DUI Operations Van will improve operational efficiency by securely transporting DUI checkpoint equipment and outreach materials while reducing deployment time and improving equipment accountability.
City Council approval of the attached Resolution constitutes the governing body authorization required by California Code of Regulations, Title 13, Division 2, Chapter 13, Section 1890.13(g), authorizing the City Manager, or designee, to execute the Grant Agreement and administer the Fiscal Year 2026-2027 California Highway Patrol Cannabis Tax Fund Grant Program on behalf of the City of Laguna Beach.
FINANCIAL ANALYSIS
The California Highway Patrol will reimburse the City up to $475,800 during Fiscal Year 2026-2027.
Category Amount
Personnel $281,600
Equipment $186,700
Other Direct Costs $7,500
Total Grant Award $475,800
The grant requires no local matching funds. A budget adjustment of $475,800 (offset by a budget adjustment for the same amount for state grant revenue) is requested in the Cities Other Grants Fund (#133) to appropriate the cost of the program as follows:
FUND ACCOUNT AMOUNT DESCRIPTION
OTHER GRANTS FUND
1332102-45100-
G2701 (475,800)
26 CHP CANNABIS TAX GRANT
REVENUE
OTHER GRANTS FUND
1332102-79999-
G2701 475,800
26 CHP CANNABIS TAX GRANT
EXPENDITURE
The City will be responsible only for future maintenance, operating expenses, and warranty costs associated with grant-funded equipment after the grant period, where applicable.
ENVIRONMENTAL ANALYSIS
The recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because it involves administrative procurement activities and does not constitute a “project” as defined by CEQA. The agreement authorizes the purchase of cabling and related
AUTHORIZATION TO ACCEPT AND EXECUTE A GRANT AGREEMENT WITH THE CALIFORNIA HIGHWAY PATROL FOR THE FISCAL YEAR 2026-2027 CANNABIS TAX
FUND GRANT PROGRAM AND APPROPRIATION OF FUNDS
July 21, 2026
equipment, and services and will not result in a direct or reasonably foreseeable indirect physical change in the environment. No further environmental review is required.
CONCLUSION
The California Highway Patrol has awarded the Laguna Beach Police Department $475,800 through the Fiscal Year 2026-2027 Cannabis Tax Fund Grant Program to enhance impaired-driving enforcement, education, prevention, officer training, and traffic safety equipment.
The grant requires no local matching funds and will provide long-term public safety benefits through investments in personnel, training, education, and equipment.
Staff recommends that the City Council adopt the attached Resolution, accept the grant award, and authorize execution of the Grant Agreement.
ATTACHMENTS
1. Resolution Authorizing Acceptance of the Fiscal Year 2026-2027 California Highway Patrol Cannabis Tax Fund Grant (Pgs. 5-7)
2. California Highway Patrol Intent to Award Letter (Pg. 8)
3. California Highway Patrol Grant Agreement No. 30864 (Pgs. 9-27) Submitted By:
. Approved: .David A Kiff
Jeff Calvert, Police Chief Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Thomas Spratt, Sergeant Jesse Schmidt, Lieutenant