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<br />Part One - Grant Overview, Continued <br /> <br />Allocations and <br />Methodologies - <br />Overview <br /> <br />California has been allocated $141,672,927 for FY04 VASI, and is required <br />to subgrant at least 80% of the funds, or $113,338,342, to urban areas and <br />transit agencies. Like the FY 03 VASI Part II grant, however, in an effort to <br />ensure that each urban area has as much resources as possible to address the <br />needs and priorities identified in the urban area assessment and strategy, the <br />state is declining its option of retaining 20% of the V ASI and mass transit <br />funding. As was the case last year, at least with regard to the VASI grants, it <br />is expected that the state's 20% portion will be distributed so as to benefit the <br />urban area as a whole. When submitting this application, all grant recipients <br />are requested to provide a breakdown of the funding distribution by <br />jurisdiction. <br /> <br />The federal Department of Homeland Security determined the allocations for <br />each of California's urban areas by using a formula based upon a combination <br />of current threat estimates, critical assets within the urban area and population <br />density. The formula was a weighted linear combination of each factor, the <br />result of which was ranked and used to calculate the proportional allocation of <br />resources. Mass transit systems eligible for participation in the FY04 VASI <br />program were identified using a formula based upon ridership and total route <br />miles. Only heavy rail and commuter rail systems were included. <br /> <br />At the discretion of each grant recipient, funds may be distributed between <br />eligible categories (planning, equipment, training, exercises, management and <br />administration); however, no more than 3% of the total allocation to each <br />grant recipient may be used for management and administration costs. <br /> <br />The state is prohibited from retaining any of the $113,338,342 unless <br />requested, in writing, from the urban area or transit agency. If requested, the <br />state may retain some or all of the urban area or transit agency allocation for <br />purchases made by the state on behalf of the urban area or transit agency. In <br />this situation, the state and urban area or transit agency must enter into a <br />Memorandum ofVnderstanding (MOV) specifYing the amount of funds to be <br />retained by the state. <br /> <br />Continued on next page <br /> <br />FY04 Vrban Areas Security Initiative <br /> <br />Page 6 <br />