Meeting Summary
Present: Jr., Furness, Christina, Jolyon · Absent: Villegas
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
Royal Theatre Project
- A speaker argued against demolition and requested a full accounting of decisions and grant impacts.
- Staff clarified that a $6,700 payment to a former project manager was for final grant reconciliation work.
- The City Administrator agreed to conduct a "lessons learned" review to improve future grant management.
- Final cost reconciliation is in progress, with the city expecting approximately $1.5 million in remaining funds.
SBCAG 60th Anniversary
- SBCAG presented a proclamation recognizing its 60th anniversary and Guadalupe's role as a founding member.
- The presentation highlighted ongoing partnerships, including $3.25 million in Measure A funding for circulation improvements.
- The Mayor noted that SBCAG and Caltrans projects are estimated to bring approximately $37 million in upcoming road improvements.
Ceremonial Proclamations
- Proclamations recognizing Filipino American History Month, Breast Cancer Awareness Month, and Indigenous Peoples Day were adopted.
Management Reports
- Public Works reported that the Amtrak station is estimated for completion by Thanksgiving and the wastewater plant generators functioned properly during power failures.
- Public Safety reported a 71.8% violent crime clearance rate and detailed enforcement actions regarding e-bikes, fireworks, and code compliance.
- The Chief of Police addressed two ICE incidents, advising citizens to observe without interfering, and discussed personnel changes including a departing officer and a pending Fire Captain decision.
- Staff confirmed that the mentorship program incurs no direct cost and that the canine wellness center is currently self-funded by the Chief.
First Quarter Financial Report
- Staff reported a $1.5 million General Fund deficit, attributed to timing issues such as prepayments to CalPERS and insurance billing.
- Fire Department overtime was a significant expense driver, with 67% of the budget expended against a 25% expected pace.
- Staff forecast General Fund cash levels to drop to approximately $800,000 by February, contingent on expected revenues.
- Water shut-offs began for residents who did not agree to payment plans, with terms available up to one year for larger bills.
Highway 1 Lift Station Replacement Project
- The City Engineer explained that the project cost approximately $1.88 million, leaving unused CDBG grant funds that expired in July.
- The Council adopted Resolution 2026-48 to accept project completion and authorize the release of the 5% contract retention.
- The resolution also authorized the closure of the CDBG grant and the filing of the notice of completion.
Fiscal Year 2022-23 Audit and Compliance
- The audit resulted in unmodified opinions for most funds, but a qualified opinion for the General Fund due to unverified revenue of $298,000.
- Auditors identified material weaknesses in journal entry review and delayed audit procedures, as well as significant deficiencies in grant management and payroll.
- Staff stated that the new ERP system implementation is expected to prevent similar issues in future audits.
- Council members discussed the importance of establishing financial policies to address turnover and documentation gaps.
Reduction of Salaries for Elected Officials
- Staff recommended introducing Ordinance 2026-533 to reduce elected official salaries to $150 per month.
- The ordinance would result in an estimated annual savings of approximately $32,400 beginning in or around January 2027.
- The Council approved the recommendation to introduce the ordinance by title and continue it for second reading.
Future Agenda Items and Announcements
- A Council member requested that "Lessons Learned for the Royal Theater" be added to a future agenda.
- The Mayor provided updates on a supported marine protected area proposal and recent Food Bank statistics.
- Announcements included upcoming meetings for the North County Subcommittee, SBCAG, and the Air Pollution Control District.
Full summary
Roll Call and Pledge of Allegiance
- Council Members Acosta Jr., Farnesz, Hernandez, and Mayor Jolyon were present; Council Member Villegas was absent. The Pledge of Allegiance was recited.
Agenda Review
- No changes to the order of business were requested.
Community Participation Forum
- Royal Theatre Project: A speaker addressed the council regarding the Royal Theatre project, arguing against demolition and in favor of completing the adjunct building. The speaker cited reasons including the cost of demolition versus roofing, potential loss of grants, community trust, and investor confidence.
- Accounting and Transparency: A resident requested a full accounting of all decisions made regarding the Royal Theatre, including monetary and non-monetary aspects. The resident questioned why county supervisors, the congressman, and the state senator were not contacted for assistance when construction stopped and requested a review of the process to prevent future errors.
Ceremonial Calendar and Proclamations
- SBCAG 60th Anniversary: Margie Curran, Executive Director of the Santa Barbara County Association of Governments (SBCAG), presented a proclamation recognizing the 60th anniversary of SBCAG. She noted Guadalupe was a founding member in 1966 and detailed ongoing partnerships, including Measure A funding for circulation improvements ($3.25 million committed to Guadalupe), Highway 166 safety improvements, and the State Route 166 Comprehensive Corridor Study. The Mayor commented on the financial impact of SBCAG and Caltrans projects on local roads, estimating approximately $37 million in upcoming improvements. A photo opportunity was taken.
- Filipino American History Month: A proclamation recognizing October as Filipino American History Month was read and adopted.
- Breast Cancer Awareness Month: A proclamation recognizing October as Breast Cancer Awareness Month was read and adopted.
- Indigenous Peoples Day: A proclamation recognizing October 12 as Indigenous Peoples Day was read and adopted.
Consent Calendar
- Discussion: A resident raised concerns regarding a warrant payment of approximately $6,700 to Tom Brandeberry for the Royal Theatre project, which was cancelled in July. The resident questioned the accounting for payments made since the project manager stepped down and requested that the item be pulled for further discussion.
- Staff Response: The City Administrator stated that the invoice represented the final check for grant reconciliation work with the EDA completed after the project stopped. He clarified that the individual was paid for work performed under the existing contract.
- Motion and Vote: A motion was made to approve the consent calendar. The motion was seconded. The vote was unanimous (all ayes). The consent calendar was approved.
Management Reports
- City Administrator (Public Works):
- Projects: The Amtrak station project and Pioneer lift station are ongoing. The Amtrak station is estimated for completion by Thanksgiving, pending weather.
- Maintenance: Routine maintenance, tree trimming, and repairs at Leroy and O'Connell were reported. A water mainline repair on Highway 1 caused temporary service interruptions for some residents.
- Wastewater: The wastewater plant experienced power failures, but generators functioned properly. Brush clearing was completed using city equipment.
- Royal Theatre: Final cost reconciliation with contractors is in progress. The city expects to have approximately $1.5 million in remaining funds, pending final closing costs.
- Other: AI workshops for seniors are scheduled to begin in November.
- Discussion: The City Administrator agreed to the need for a "lessons learned" review of the Royal Theatre project to understand failures and improve future grant management. He noted that an audit 12 months prior might have revealed insufficient general fund balances to start the project.
- Director of Public Safety:
- Homelessness: The department is working with Pathpointe to secure housing for homeless individuals.
- E-bikes/Scooters: An enforcement program is being developed in partnership with the Guadalupe Union School District, potentially including a ban on school grounds.
- Clearance Rates: The Guadalupe Police Department reported a 71.8% clearance rate for violent crimes, which is higher than the national average and the highest in Santa Barbara County.
- Park Security: A vehicle incident in Los Mejores Park was resolved via camera footage, leading to an arrest and a ban on the perpetrator.
- School Safety: Officers will be present at junior high athletic events to assist with crossing guards.
- Fireworks: Enforcement hearings are ongoing.
- Code Compliance: The department is restructuring code compliance duties following the elimination of a specific position due to budget constraints.
- Senior Volunteer Program: A grant was awarded to hire senior citizens; job duties are being defined.
- Mentorship: The department maintains a mentorship program for youth and adults.
- ICE Incidents: The Chief reported two incidents involving ICE agents. One was a false alarm at a processing plant. The other involved an arrest at a market; the department secured the individual's vehicle and belongings. The Chief stated the department’s role is to be reactive, ensure safety, and educate the community, advising citizens to observe without interfering.
- Personnel: Officer Chris Roscoe is leaving for the Grover Beach Police Department. Two other officers are in the hiring process. The Fire Captain interview process is complete, with a decision expected by the end of the week.
- Canine Wellness: The Chief is exploring the development of a canine wellness training center in Guadalupe, potentially leveraging CHP interest.
- Discussion: Council members inquired about the cost of the mentorship program (no direct cost, officer time only), the department's stance on citizen observation of federal agents (do not interfere, be a witness), and the funding source for the canine wellness program (currently self-funded by the Chief, with potential for external funding).
First Quarter Financial Report (Fiscal Year Ending September 30)
- Staff presented preliminary, unaudited financial figures for the first quarter of the fiscal year. The General Fund reported a deficit of $1.5 million, compared to a budget forecast of a $3.6 million deficit. Staff attributed the deficit appearance to timing issues, including prepayments to CalPERS and annual billing for liability insurance and workers' compensation. Revenue was reported to be approximately 2.5% below budget, while expenses were approximately 4.8% above budget. Significant expense drivers included Fire Department overtime, which was 67% expended against a 25% expected pace. Staff noted coding issues regarding payroll taxes inflating salary line items and identified surpluses in Water ($302,000) and Wastewater ($115,000) funds. Staff highlighted cash flow concerns, forecasting General Fund cash levels to drop to approximately $800,000 by February, contingent on expected revenues and reimbursements. Staff stated there is no budget amendment at this time and that they will continue monitoring cash, reimbursements, and spending.
- During the discussion, a Council member noted that the city has $250,000 in unpaid water bills and announced that water shut-offs would begin the following day for residents who had received 30-day notices. Staff confirmed that payment plans are available, with terms up to one year for larger bills and potentially longer for those meeting statutory hardship requirements. Staff indicated that shut-offs would proceed for those who did not agree to or meet the requirements of a payment plan.
Highway 1 Lift Station Replacement Project (Public Hearing and Resolution 2026-48)
- The City Engineer presented a report on the Highway 1 Lift Station Replacement Project. The project, identified as critical infrastructure in 2014, involved replacing an existing lift station to manage sewage flow in the flat terrain of Guadalupe. The project timeline included a contract award in February 2023, a suspension period while awaiting Community Development Block Grant (CDBG) funds, and a construction start in July 2025 due to material procurement delays. The city received a $3.5 million CDBG grant, but total project costs were approximately $1.88 million. The City Engineer explained that the CDBG grant expired at the end of July, and the unused funds were not transferred to other projects, such as the pending Pioneer Street lift station project.
- The Council opened a public hearing to allow for public comment on the CDBG grant and the project. Following the hearing, a Council member moved to receive the presentation, accept the public hearing, and adopt Resolution 2026-48. The resolution accepted the completion of the project, authorized the filing of the notice of completion, authorized the release of the 5% contract retention to the contractor following the statutory 30-day lien period, and authorized the closure of the CDBG grant. The Mayor seconded the motion. The resolution passed.
Fiscal Year 2022-23 Audit Completion, ARPA Compliance, and GAN Limit Reports
- Staff presented the completion of the Fiscal Year 2022-23 audit, which was finalized on September 15. The audit resulted in unmodified opinions for most funds, including Water, Wastewater, Transit, Royal Theater, ARPA, and CIP. However, the General Fund and Governmental Activities received a qualified opinion because the auditors could not verify sufficient support for $298,000 in General Fund revenue. Staff stated that the city decided to move forward rather than delay the audit further to investigate the specific revenue discrepancy. The ARPA compliance review found the city compliant in all material respects, and the GAN limit review found no exceptions.
- External auditors from Badawi and Associates presented their findings. They identified several internal control deficiencies, including material weaknesses related to journal entry review, delayed audit and annual closing procedures, and ERP implementation errors. Significant deficiencies included grant management, capital asset accounting, payroll master file maintenance, bank reconciliations, and documentation for cost allocation charges. The auditors noted risks related to management override of controls, loss of institutional knowledge, and segregation of duties in payroll. They also discussed new accounting pronouncements implemented in 2023 and upcoming changes for 2024–2027.
- In response to Council questions, staff indicated that the qualified opinion regarding revenue verification was specific to the 2022-23 period and that the new ERP system implementation is expected to prevent similar issues in future audits. Staff stated that while a specific timeline for completing remaining audits is not available, the team is working as quickly and prudently as possible, noting staffing constraints and the complexity of cleaning up historical data. Council members discussed the importance of establishing financial policies and procedures to address turnover and documentation gaps.
Reduction of Salaries for Elected Officials (Ordinance 2026-533)
- The Assistant City Attorney presented a staff report recommending that the City Council introduce Ordinance 2026-533 by title only, waive the first reading, and continue the ordinance for second reading and adoption at the October 27, 2026 meeting. The ordinance would reduce the monthly salaries of all city elected officials to $150 per month, resulting in an estimated annual savings of approximately $32,400 beginning in or around January 2027. A Council member moved to approve the recommendation to introduce the ordinance by title and continue it for second reading. The motion was accepted.
Future Agenda Items and Announcements
- A Council member requested that "Lessons Learned for the Royal Theater" be added to a future agenda. Another Council member provided announcements regarding recent community events attended, including the Harvest Festival and a family barbecue, and noted an upcoming rally hosted by Indivisible.
Mayor’s Report / Public Comment
- The Mayor provided updates on recent activities and upcoming meetings. These included a site visit to Point Sal with a Fish and Game Commissioner and Chumash tribal representatives regarding the proposed marine protected area and co-management plan, which the group supported with a recommendation to approve. The Mayor also noted recent Food Bank statistics (227 individuals served, 53 new individuals), upcoming meetings for the North County Subcommittee, SB CAG, and the Air Pollution Control District, and a recent gathering for Veterans of America Post 982.
Adjournment
- A motion to adjourn was made and seconded. The motion was put to a vote, and the vote outcome was passed.