Meeting Summary
Present: Villegas, Hernandez, Julian · Absent: Jr.
This summary was AI-generated to save you time. It may miss or misstate details, so verify against the official recording and the transcript.
At a glance
Management Report
- The Royal Theater project is awaiting final invoices and cost estimates, with the contractor expressing willingness to continue construction.
- Las Mojadas Park opened with high attendance, though grass areas remain blocked off pending ground compaction and erosion control.
- Construction at the Amtrak Station is progressing with curbs poured and underground work continuing.
- Staff clarified that plastic barriers are used for park maintenance to facilitate easier repair and removal compared to chain-link fencing.
Director of Public Safety Report
- Security cameras are being installed at Las Mojadas Park while IT and vendors resolve connectivity issues.
- The department is reviewing municipal and state codes to address e-scooter usage and helmet requirements in coordination with the school district.
- A design review is underway regarding a syringe disposal location in the park bathroom to ensure legal compliance.
- Staff acknowledged community coalitions working on e-bike issues and committed to following up on local enforcement activities.
Finance Director’s Preliminary FY 2026 Q4 and Year-End Financial Report
- The general fund deficit was corrected to approximately $379,900 after reversing an incorrect grant reimbursement entry, leaving a total deficit of $1.2 million.
- City cash decreased from $12.4 million to $9.95 million during the quarter, including $775,000 in potentially refundable EDA funds.
- The Water and Wastewater enterprise funds reported surpluses of $291,000 and $695,000, respectively.
- The 2022-2023 audit is in its final stages, with the report expected by the end of the month.
Reduction of Elected Officials’ Monthly Stipends
- The council approved a recommendation to reduce monthly stipends to $200 for council members, the city treasurer, and the city clerk.
- The mayor’s monthly stipend was reduced to $450 as part of the same measure.
- The City Attorney clarified that under state law, these changes apply to the next council term rather than the current one.
- The reduction is estimated to save the city approximately $25,000 annually.
Adoption of New Travel, Expense Reimbursement, and Vehicle Use Policy
- The council adopted Resolution 2026-46 to update the city’s travel and expense policies, which had not been revised since 2012.
- The new policy updates per diem and mileage rates to align with current IRS standards.
- All travel and expenses now require a documented official business purpose and must fall within an authorized budget.
- The resolution takes effect immediately upon signing.
Closed Session
- No closed-session items were reported in the provided summary.
Full summary
Agenda Item 4: Agenda Review
- The City Clerk read the agenda review item. The Mayor asked if any council members wished to change the order of business. No changes were requested.
Agenda Item 5: Community Participation
- Several members of the public addressed the council:
- Judy Wilson (on behalf of Jeannie Mello): Expressed thanks to Chief Cash and staff for the emergency preparedness meeting held on September 2nd and recommended the council approve more resident involvement programs.
- Frances Romero: Acknowledged the 9/11 anniversary and the opening of Las Mojadas Park. She asked questions regarding the operating budget and maintenance funding for the new park.
- Mike Grappling: Raised concerns regarding the halted Royal Theater project, questioning the roles of the grant writer and contractors, and citing issues with project supervision and funding. He also proposed a basketball tournament involving city employees, contractors, and residents.
- John Hooten (Allan Hancock College): Presented information regarding a proposed bond measure (Measure H) for the college. He detailed enrollment statistics, new degree programs, infrastructure needs (including electrical upgrades), and the financial impact of the proposed $290 million bond. He noted that the college is seeking community support for the measure.
- Frances Romero (Second Comment): Addressed the Hancock College presentation, expressing concerns about the long-term financial burden of bonds, the maintenance of aging infrastructure, and the allocation of funds for capital expenditures versus salaries.
Agenda Item 6: Consent Calendar
- The City Clerk read the consent calendar items, which included:
- Ratification of warrant payments for periods ending August 14 and August 21, 2026.
- Approval of minutes from the August 25, 2026, regular meeting.
- Second reading of Ordinance 2026-532 (amending the Vacant Commercial Property Registration and Property Maintenance Ordinance regarding annual registration fees).
- Adoption of Resolution 2026-44 (establishing the appropriations limit for FY 2026-27).
- Adoption of Resolution 2026-45 (approving the investment policy for FY 2026-27 and renewing delegation of investment authority).
- Frances Romero requested to speak before the vote. She commented on the vacant building ordinance and the appropriations limit, expressing support for those items. She raised concerns regarding the warrant payments, noting a high volume of payments and the state of the general fund. She also questioned the status of reserve funds and the stewardship of special and restricted funds, particularly in light of upcoming wastewater studies.
- A motion was made to approve the full consent calendar. The motion was seconded. There was no further discussion. The vote was taken, and the consent calendar passed.
Agenda Item 7: Management Report (City Administrator)
- David Brio presented the management report:
- Royal Theater: The city is awaiting the July invoice and a cost estimate for the punch list from the contractor. A meeting was held with the contractor, which was described as cordial, with the contractor expressing willingness to continue construction.
- Las Mojadas Park: The park opened on Friday with high attendance. Grass areas and barbecue pits remain blocked off pending ground compaction and erosion control. Minor parking lot repairs are underway.
- Amtrak Station: Construction is in progress, with curbs poured and underground work continuing.
- Discussion followed regarding the use of plastic barriers versus chain-link fencing to keep people off the grass, with the City Administrator noting the plastic barriers are easier to repair and remove. A council member raised a concern about cigarette butts accumulating in the trash cans, suggesting that the presence of ashtrays might imply smoking is permitted. The City Administrator noted that while smoking is prohibited, the ashtrays provide a place for butts to be disposed of rather than littered.
Agenda Item 8: Director of Public Safety Report
- Chief Cash presented the public safety report:
- Las Mojadas Park: Cameras are being installed, but connectivity issues are being resolved with IT and the vendor. A design issue was noted regarding a syringe disposal location in the bathroom, which is being reviewed for potential legal requirements.
- E-Scooters and Helmets: The department is working with the school district and reviewing municipal codes and California vehicle codes to address the use of motorized scooters and helmet requirements. A group is being formed to stay ahead of this issue.
- A council member mentioned a coalition (BC Centro) working on e-bike and e-scooter issues and suggested the city reach out to them. Another council member noted a CHP e-bike assembly at a local school. Chief Cash acknowledged the information and stated he would follow up.
- Frances Romero addressed the council regarding the theme of rule enforcement in Guadalupe. She argued that rules (such as no-smoking) should be enforced and that amenities like ashtrays do not negate the rule. She stated that citizens should be held accountable for following laws and that the council should lead by example in adhering to rules and proper financial stewardship.
Agenda Item 9: Finance Director’s Preliminary FY 2026 Q4 and Year-End Financial Report
- Eli Martinez presented the financial report:
- Deficit: The report initially showed a deficit of $10,900, which was corrected to a deficit of approximately $379,900 after reversing an incorrect $1.2 million grant reimbursement entry. This leaves the general fund with a deficit of approximately $1.2 million compared to the adopted budget deficit of $837,000.
- Revenues: Taxes finished at 113% of budget. Building and planning revenues finished at 63% of budget. Enterprise transfers were halted pending audit confirmation.
- Enterprise Funds: The Water Enterprise Fund showed a $291,000 surplus, and the Wastewater Fund showed a $695,000 surplus.
- Cash Position: City cash fell from $12.4 million to $9.95 million during the quarter. This includes $775,000 from the EDA, which may or may not be refundable.
- Audits: The 2022-2023 audit is in its final stages, with a report expected by the end of the month. The 2023-2024 audit is expected to proceed faster, though no promises were made.
- Questions were raised regarding:
- Encroachment Permits: Budgeted at $25,000, actuals were $1,021. The Finance Director explained budgets are based on historical activity.
- Criminal Fines and Penalties: Budgeted at $6,000, actuals were $24,500. Chief Cash attributed the increase to summer activity, tows, impounds, and ADA-related parking issues.
- FICA and Medicare: Budgets existed but no actuals were recorded. The Finance Director indicated this may be due to accounting errors or lumping into other accounts and would investigate.
- Non-Departmental Medical Insurance: A budget line item for medical insurance in the non-departmental category was questioned. The Finance Director explained non-departmental covers citywide costs but could not explain the specific medical insurance budget line, noting it was not in the current year's budget.
- Cost-Saving Measures: The Finance Director noted that layoffs and the halt of the Royal Theater project have impacted cash flow. The city is still facing a deficit of approximately $1.5 million after cost measures. The City Administrator noted that unfilled positions (planner, public works director, recreation manager) are helping cash flow, but the full budget impact will not be seen until later.
- Frances Romero addressed the council, thanking the Finance Director and City Administrator for their efforts. She criticized the council for not requiring audited financials for several years, noting a 25% structural budget deficit. She stated that the council is responsible for budget and policy, not operations, and questioned the decision to pay a consultant who had publicly criticized the city.
- Mira (Council Member) requested that the City Administrator provide a written report linked to the agenda, as requested previously but not provided. She asked for clarification on whether the $1.5 million in reimbursable funds includes the $775,000 EDA funds. She stated that a three-year plan is not sufficient and that the council needs to take actionable steps to reduce spending or increase revenue, noting that canceling tourism projects is not a viable strategy.
Agenda Item 10: Reduction of Elected Officials’ Monthly Stipends
- The City Administrator presented a recommendation to reduce the monthly stipend for elected officials by $300. This would result in a $200 monthly stipend for council members, the city treasurer, and the city clerk, and a $450 monthly stipend for the mayor. The reduction would save approximately $25,000 annually.
- Discussion included:
- Council Member Fernandez: Recommended reducing stipends to the original $150 for all, with a higher amount for the mayor.
- Council Member Villegas: Suggested delaying the vote until January to allow new council members to vote on the issue, citing concerns about attracting quality candidates if stipends are too low.
- Council Member Hernandez: Expressed support for the reduction but suggested waiting until the new council is seated.
- City Attorney: Clarified that under California law, a sitting council cannot change its own salary/stipend for the current term; any change would take effect for the next council.
- Robert Diaz (Public Comment): Recommended lowering stipends as much as legally possible to demonstrate leadership and save money.
- Frances Romero (Public Comment): Supported the reduction, noting she served as mayor with a low stipend and that savings should start with the council.
- Stephanie (Public Comment): Supported the cut as a symbolic gesture and suggested all employees take a 5% cut.
- A motion was made to reduce the stipends to $200 for council members, the city clerk, and the city treasurer, and $450 for the mayor. The motion was seconded. After clarification on the amounts, the vote was taken. The motion passed.
Agenda Item 11: Adoption of New Travel, Expense Reimbursement, and Vehicle Use Policy
- The City Administrator presented Resolution 2026-46, which updates the city’s travel, expense reimbursement, and vehicle use policy. The previous policy was from 2012. The new policy updates per diem rates, IRS mileage rates, and requires that all travel and expenses have a clear, documented official business purpose and be within an authorized budget. It also specifies who must grant permission for travel.
- A motion was made to adopt Resolution 2026-46. The motion was seconded. The vote was taken, and the resolution passed. The effective date is immediate upon signing.
Agenda Item 12: Future Agenda Items
- The City Attorney noted that the resolution regarding the stipend reduction would likely appear on the agenda for the meeting on the 13th.
Agenda Item 13: Announcements, Council Activity, and Committee Reports
- Council Member Fernandez: Reported on attending a pesticide meeting, an emergency preparedness meeting, and the Las Mojadas Park ribbon cutting. She noted the park was clean but had some litter. She also mentioned the Guadalupe team raised $1,700 for Mission Hope.
- Council Member Hernandez: Reported on attending PTA meetings, a voter forum, and a youth skateboarding event at the new park.
- Mayor Julian: Announced that the food bank had 195 clients. The Senior Center is holding a rummage sale on Saturday. Caltrans is expanding the roadway on Highway 1 from Solomon Road to Route 166.
- City Administrator: Noted that a contract amendment will waive his vehicle allowance and next year’s COLA increase to help with costs.
Adjournment
- A motion was made to adjourn the meeting. The motion was seconded. The vote was taken, and the motion passed.