TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: John Incontro, Police Chief
DATE: September 9, 2026
SUBJECT: ACCEPTANCE OF CANNABIS TAX FUND GRANT PROGRAM
(CTFGP) FUNDING IN THE AMOUNT OF $140,078.23 AND
ADOPTION OF RESOLUTION NO. R-26-29
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Safe Community
Fiscally Responsible and Transparent City Government
Efficient, Responsive, and Effective City Services
BACKGROUND
With the 2016 passage of Proposition 64, and in accordance with Revenue and Taxation Code Section 34019, the California Highway Patrol (CHP) was tasked with establishing a grant administration program to disburse grant funds to local government and qualified nonprofit organizations for education, prevention, and enforcement of laws related to driving under the influence of alcohol and other drugs, including cannabis.
The Cannabis Tax Fund Grant Program (CTFGP) was established to provide alternative funding sources to augment, but not supplant, current activities and programs. Funding is allocated in accordance with California Code of Regulations (CCR) Sections 1890.05 through 1890.07, Cannabis Tax Fund Grant Program.
The intent of the program is to educate the public regarding the dangers of impaired driving, enforce impaired driving laws on the roadway, and improve the Police Department’s effectiveness through training and development of new strategies.
Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
DISCUSSION
The Police Department applied for and is conditionally approved for CTFGP funding in the amount of $140,078.23. The funds will be used to perform DUI/Drug Enforcement operations within the City of San Marino (City), utilizing DUI Saturation Patrols and a DUI Checkpoint. To accomplish this, the Department has also been authorized by the CHP to purchase equipment specific to DUI enforcement including:
* A DUI patrol vehicle (includes outfitting and decals) * Educational materials and supplies
* Educational presentations and outreach (Neighborhood Watch and Coffee with a Cop)
The DUI Saturation Patrols and DUI Checkpoint will be concentrated in areas of the City with a high incidence of impaired driving traffic accidents. The Department will be able to enhance patrol presence on Huntington Drive and in all heavily trafficked areas of the City.
The City has received the official Grant Agreement. To execute the Grant Agreement, a resolution from the City Council authorizing the Police Department to receive this grant funding is required.
Grantees are required to report quarterly on achieved project goals and activities.
Payments are issued on a reimbursement-basis only, and payment advances are not allowed. Grantees shall submit reimbursement requests on a quarterly basis for approved achievements and expenses relating to the project goals and activities that occurred during the reporting period.
The grant performance period started July 1, 2026, and ends June 30, 2027.
This Staff Report is for the acceptance of the CTFGP funds and approval of the FY 2026-27 budget adjustments needed. The request to purchase equipment authorized under the program will be presented for Council’s approval at a future date as required by the City’s purchasing rules. Below is the approved budget as listed in the Grant Agreement.
Award Number Agency Total Amount
30932 San Marino Police Department $140,078.23
Cost Category Line-Item Name Total Cost to
Grant
Equipment DUI Patrol Vehicle $123,565.31
Category SubTotal $123,565.31
Personnel DUI Saturation
Patrol $4,871.10
DUI Checkpoint $9,742.12
Education /
Outreach $1,623.70
Category SubTotal $16,236.92
Other Direct
Costs
Educational
Materials $276.00
Category SubTotal $276.00
Grant Total $140,078.23
FISCAL IMPACT & PROCUREMENT REVIEW
The proposed Grant Agreement presents no fiscal impact to the General Fund as this is a reimbursement grant, and any expenditures incurred will be reimbursed by grant funds. The FY 2026-27 budget adjustments listed below are needed to account for the grant revenue and expenditures.
Account # Amount Description
218-30-
3201-5550 $140,078.23 To account for anticipated grant revenue 218-30-
4001-0000 $16,236.92 To cover personnel costs related to the DUI Saturation patrols, DUI Checkpoint, and educational
presentation
218-30-
4613-4700 $123,565.31
To cover equipment purchases as
approved by the grant (includes
outfitting costs)
218-30-
4376-0000 $276.00 To cover other direct costs related to the grant
LEGAL REVIEW
The City Attorney's office has reviewed this report and approved as to form.
RECOMMENDATION
Staff recommends that the City Council approve the agreement for the Cannabis Tax Fund Grant Funding and authorize the City Manager or his designee to execute any and all agreements and documents necessary to accept and expend the grant funds in an amount not to exceed $140,078.23 in the fiscal year ending June 30, 2027. Staff also recommends the approval of Resolution No. R-26-29. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve and authorize the Chief of Police and the City Manager or their designee to enter into the agreement with the California Highway Patrol in an amount not to exceed $140,078.23, approve budget adjustments needed, and adopt Resolution No. R-26-29.”
ATTACHMENTS
1. Resolution No. R-26-29 Acceptance of Cannabis Tax Fund Grant
2. Cannabis Tax Fund Grant Acceptance Intent to Award Letter from the California Highway Patrol
3. State of California Highway Patrol Grant Agreement - FY 2026-27 CTFGP Law Enforcement - San Marino Police Department