Meeting Summary
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At a glance
Management Reports: Recreation & Parks
- Staff reported that the Junior Giants baseball field is ready and the program will continue without interruption.
- Maintenance staff will repair the horseshoe pits using donated wood, a process estimated to take one day.
- Council discussed the impact of the vacant recreation manager position on summer programs and staffing plans.
- Staff encouraged other agencies to increase involvement in drop-in activities due to limited city staffing.
Management Reports: Public Safety
- The Chief reported on camera system updates, hospital board meetings, and a planned health and safety fair.
- A contingency plan for the budget was developed in consultation with police and fire personnel to address potential deficits.
- The Chief outlined a strategy to prioritize critical departmental needs and identify revenue sources.
Management Reports: Finance/Budget
- Staff presented a preliminary General Fund budget projecting a $2.9 million deficit with revenues of $6 million and expenditures of $8.9 million.
- Safety services account for 63% of expenditures, while the city currently has no reserve funds and faces liquidity concerns.
- The Capital Improvement Plan was reduced from $37 million to $5 million based on regulatory requirements and financial feasibility.
- Staff requested direction on closing the deficit and will return with options for cost reductions and a liquidity plan.
Project Status Updates
- Royal Theater construction is proceeding with interior footers poured and facade demolition begun, pending a Caltrans sidewalk permit.
- Las Mujeres Park skate park construction is underway, including paving and ADA compliance fixes, with a portable restroom expected soon.
- 303 Courtyard work is pending the delivery of redesigned gates, after which striping, landscaping, and fence replacement will occur.
Proposed Guadalupe Harvest Festival at Jack O’Connell Park
- The proposal for a two-day cannabis and community festival was presented, estimating 10,000 attendees per day and zero net cost to the city.
- Staff noted that while state code permits the event, municipal compliance is under review and a special events ordinance is being developed.
- Council discussed concerns regarding traffic, noise, public safety, and the message sent by cannabis sales in a community with a high youth population.
- A motion to approve permitting, marketing, and ticket sales was not seconded and died for lack of a second.
- A motion to decline to move forward with the proposed festival was seconded and passed.
2026-27 Community Draft Budget Workshop
- The Chair introduced the 2026-27 Community Draft Budget workshop.
- Mr. Martinez was called to speak during the segment.
- No motion was made, seconded, or voted upon in this segment.
Full summary
Consent Calendar
- The Clerk presented the consent calendar for approval without individual discussion. No council members requested to pull items for separate discussion. A motion was made and seconded to approve the consent calendar. The motion passed.
Management Reports: Recreation & Parks
- Staff provided updates on park maintenance, including the status of horseshoe pits (noting donated wood is available for repairs) and the readiness of the Junior Giants baseball field. Council members discussed the lack of a recreation manager, the impact on summer programs, and the need for the Recreation Commission to be kept informed of staffing plans. Questions were raised regarding the timeline for hiring a recreation manager and the status of park infrastructure repairs. Staff confirmed that the Junior Giants program will not be stopped or postponed and that maintenance staff will assess and repair the horseshoe pits, estimated to take approximately one day. Staff stated that drop-in activities will continue and encouraged other agencies to increase involvement due to limited city staffing. No formal motion or vote was taken on this item.
Management Reports: Public Safety
- The Chief of Public Safety reported on camera system updates, hospital board meetings, and a planned health and safety fair. The Chief discussed the SAFER grant application, the Memorial Day event, and a contingency plan for the budget developed in consultation with police and fire personnel. The Chief outlined a strategy to prioritize critical departmental needs and identify revenue sources to address potential deficits. No formal motion or vote was taken on this item.
Management Reports: Finance/Budget
- Staff presented a financial report highlighting revenue deficits and the status of grant reimbursements. Council members discussed the need for detailed data on departmental expenses, specifically for police and fire, to make informed budget decisions. Concerns were raised regarding late reimbursement submissions and the lack of monthly financial reports in the past. Council members requested a master list of ongoing projects and their associated costs to prioritize spending and asked about safeguards to ensure annual audits are completed in the future.
- Staff presented the preliminary budget for the General Fund, noting that the data is based on audited and preliminary information while audits for 2022–2023 are ongoing. The presentation highlighted a projected deficit of $2.9 million, with total revenues estimated at $6 million and expenditures at $8.9 million. Key revenue sources identified include $4.7 million in taxes, $225,000 in cannabis taxes, and $183,000 in building and planning permits. Expenditures are dominated by safety services (police and fire), which account for 63% of the budget ($5.6 million), with the remainder allocated to city operations and administration ($3.3 million).
- Staff noted that CalPERS rates are forecast to decrease slightly, while medical costs are expected to rise by 12% plus a $1,200 per-employee premium increase. Staff indicated that the city currently has no reserve funds and faces potential liquidity concerns. It was noted that past budgets included grant revenues (e.g., $1.1 million in 2023–2024) that were not yet received, contributing to the current deficit. Staff explained a shift in cost allocation methodology for enterprise funds, where staffing costs will be charged directly to the enterprise funds rather than transferred from the General Fund, aligning with GASB recommendations.
- Staff reported that the city is behind on audits (3–4 years) and that over $1 million in funds from SBCAG is withheld pending audit completion. Staff noted that other regional cities are also behind on audits. Staff identified issues with delayed grant reimbursements (e.g., FEMA, EDA) due to missed deadlines or administrative delays. A new grant management firm is assisting with submissions and reporting. There are pending reimbursements from FEMA (approx. $800,000, three years post-incident) and SBCAG (over $1 million, held pending audit completion). Staff noted that CDBG formula funding may be available based on population criteria.
- Staff reported that the Capital Improvement Plan (CIP) list has been reduced from approximately $37 million to approximately $5 million. Projects are being prioritized based on regulatory requirements and financial feasibility. Staff requested direction from the Council on closing the deficit, including potential cost cuts, revenue increases, or service level adjustments. Staff indicated they would return with options for cost reductions by department and a liquidity plan. It was stated that a purchase order program requiring approval for expenditures over $1,000 would begin on July 1. Additionally, non-regulatory construction projects are planned to pause in December to allow for financial review and prioritization. Staff indicated they would return within two weeks with options for corporate restructuring and a detailed financial outlook. No formal motion or vote was taken on this item.
Project Status Updates
- Royal Theater: Staff reported that interior footers have been poured and facade demolition has begun. Work is pending an impression permit for the sidewalk from Caltrans, which was submitted the previous week. Inspections for interior rebar and the south pad are scheduled, with hopes to pour the south pad soon. Design adjustments are being made to bathroom interiors to fit within the cost formula.
- Las Mujeres Park (Skate Park): Construction is underway, including paving in the parking area and ADA compliance fixes for sidewalks. A portable restroom is anticipated for late June or early July.
- 303 Courtyard: Work is pending the delivery of redesigned gates. Once installed, the project will involve striping, landscaping, and fence replacement. Staff noted a delay with a breaker for the EV charging station, which may affect immediate functionality but is expected to be resolved within a week.
Regular Business: Proposed Guadalupe Harvest Festival at Jack O’Connell Park
- Austin Canela, founder of Route One Presents and managing member of Route One Dispensary, presented a proposal for the "Guadalupe Greens Festival," a two-day event scheduled for September 19–20 at Jack O’Connell Park. Key details of the proposal included:
- Scale and Impact: An estimated 10,000 attendees per day, 150–250 temporary local jobs, and zero net cost to the city.
- Site Plan: The event would utilize the park’s existing infrastructure. A designated "Cannabis Village" would be located on the north corner (ball field area), physically separated from the main stage and family areas by opaque fencing. The village would include a consumption tent and sales area operated by Route One under existing state licenses.
- Programming: The event would feature an all-ages main stage, food zones prioritizing local businesses, a kids’ area, a car show, and a holistic village. Headlining acts in negotiation include Revolution, Kali Buds, and Barrington Levy.
- Safety and Compliance: The cannabis area would be 21+ only, with strict ID checks, dedicated security, and a DCC compliance agent on site. Security would include 29 guards on Saturday and 25 on Sunday, plus overnight coverage. Harm reduction partners would provide medical support, Narcan, and testing kits.
- Parking and Logistics: Public parking would be located at the Highway 1 and West Main Street corridor (Pasadena commercial lots), with a shuttle service transporting attendees to the park to avoid residential traffic. Estimated capacity is 2,800 vehicles.
- Financials: The event would generate approximately $60,000–$73,000 in direct revenue for the city via ticket contributions. Additional revenue would come from alcohol/cannabis sales tax and permit fees. All operational costs (police, fire, staff) would be billed to the event organizer. A net financial gain of $70,000–$90,000 is projected, including a community benefit of 50% of food vendor fees directed to local nonprofits.
- Risk Mitigation: The city would be named as an additionally insured party with a minimum $5 million per occurrence coverage. The Finance Director would have audit rights over ticketing records.
- Canela requested the Council’s authorization to proceed with the permitting process, begin marketing and advanced ticket sales, schedule follow-up working sessions with planning, police, fire, and administration to finalize details, and provide monthly Council updates leading up to the event.
- Staff noted that the event is permitted under state code, but municipal code compliance is being reviewed. Staff indicated that further research is being conducted on potential regulatory hurdles. An unidentified speaker (likely City Attorney or staff) noted that while the current park policy prohibits smoking marijuana in public parks, permits can be granted to override such restrictions. The speaker indicated that a standalone special events ordinance is being developed, which would provide a clearer legal framework for such events. The speaker suggested there is "wiggle room" for the Council to proceed via a special events permit or Council policy directing staff, though it remains a gray area until the new ordinance is adopted.
- Council members discussed the event's scale (estimated 11,000–14,000 attendees), potential traffic impacts on Highway 1 and 166, noise levels affecting residential areas, and the message sent by including cannabis sales in a community with a high youth population. Some members expressed support for the economic opportunity and community engagement, while others cited concerns about public safety, the proximity to schools, and the city’s recent no-smoking policy. Public comments were received opposing the event due to concerns about normalizing cannabis use and the event's size relative to the city’s population.
- A motion was made to approve items A, B, and C (authorizing the city to move forward with permitting, marketing, and ticket sales). The motion was not seconded and died for lack of a second.
- A motion was made to approve item D (declining to move forward with the proposed festival). The motion was seconded. The motion to decline to move forward with the proposed festival passed.
2026-27 Community Draft Budget Workshop
- The Chair introduced the 2026-27 Community Draft Budget workshop. Mr. Martinez was called to speak. No motion was made, seconded, or voted upon in this segment.
Adjournment
- A motion was made to adjourn the meeting. The motion was seconded. The motion passed.