BodyCity Council
MeetingRegular Meeting
Date📅 October 13, 2026

UnGovr Transcript

iHow this transcript is madeUnGovr transcribes the official recording with automated speech-to-text, separates speakers by voice, and matches voices to the seated roster. Names and attributions are AI estimates and may contain errors.Verify any quote yourself: click anywhere in the transcript and the official video jumps to that exact moment, so you can check any quote against the recording.
  1. PendingQueued for transcription.
  2. AIYou are hereAuto-transcribed and summarized; not yet human-verified.
  3. VerifiedReviewed and corrected by a person.

0:05 – 0:074 turns

UnidentifiedMayorProposed · by role5:46

Good evening, welcome to the regular meeting Guadalupe City Council Tuesday October 13 6pm. Here we have roll call please.

Roll call, called by City Clerk
Show transcript
Council Member Acosta Jr. Here. Council Member Farnesz. Here. Council Member Villegas is absent Mayor Pro Tempore Christina Hernandez. Here. And Mayor Jolyon. Here,
Pledge of Allegianceceremonial · click to expand
UnidentifiedMayorProposed · by role6:08

present. So will you please time with me for the Pledge of Allegiance? Ready, begin.

I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God indivisible with liberty and justice for all.

All right next item is time for a moment of thanks appreciation or condolences anything That's just one of the things, the USS Lincoln. I'm glad to see them home and safe. Moving right along item number four agenda review is there a council person that wishes to change the order of business? Okay

we'll move on to item five and since you're standing up there Mike do you have a request to speak? This that's, that was the basketball thing. This Judy when you read the paragraph for that community participation piece.

UnidentifiedCity ClerkProposed · by role7:44

Community participation forum, each person will be limited to a discussion of three minutes or as directed by the mayor pursuant to the provisions of the Brown Act.

Agenda Discussionitems moved / continued / pulled, click to expand
UnidentifiedCity ClerkProposed · by role7:53

No action may be taken on these matters unless they are listed on the agenda or unless certain emergency or special circumstances exist. City Council may direct staff to investigate and or schedule certain matters for consideration at our future city council meeting.

UnidentifiedMayorProposed · by role8:10

All right, thank you. Mr. Rockland? You're on.

UnidentifiedUnidentified speaker 1Proposed8:14

On the clear balmy night of October 3rd friend percussionist Ray Ayala who holds a Bachelor of Arts in Music Performance and a Master's in Bilingual Multicultural Education took me to a Lompoc concert This traditional Mexican music event was inspirational, since thoughtless leader Eugene Rodriguez having guided young musicians most of their way. Pre-teens are addicted to interactive video machine gun war games at league and scrimmage basketball players arrive high reporting that yes they too are addicted Yet seeing the Sensatles performance and reading Rodriguez's well-constructed argument, his book Bird of 400 Voices confirmed that there are dedicated professionals who considered their calling to instruct youth in music theater and dance.

In the life of an artist a small boost minor encouragement or knowledgeable advisory Can make the difference between brilliance and resignation. To a small city, it can mean the difference between shining example and disdain following our reasons to complete the adjunct building not demolish number one painstaking efforts so far includes obtaining grants community Survey design decisions, rejecting initial designs, revising designs, obtaining plan documents, choosing contractors and initiating construction. Number two it will cost about as much to demolish as to roof and seal this is confirmed by project managers.

If demolished workers will become disheartened dispirited and insulted if demolished contractors may refuse interaction if demolished grantors May refuse interaction, this is arguable as this is already the second time generous grants have been issued for the theater's retrofit. If demolished community members will lose trust become further jaded cynical. Number seven locally politicians have already stepped back number eight open disregard for community aspirations may result in unruliness Number nine investors will go elsewhere.

UnidentifiedMayorProposed · by role10:46

Good points, Mike. Thank you. Is there any other request to speak? You're late. You can't come up. Just kidding. Come on. Okay.

GuestMelanie BackerCity ManagerProposedself-stated11:09

I'm Melanie Backer. I'm a resident of Guadalupe, grateful resident and I implore all of you the mayor city council members of our city manager our attorney is he here? Is Phil here?

UnidentifiedMayorProposed · by role11:31

We have representation thank you

GuestMelanie BackerCity ManagerProposedself-stated11:32

okay Everyone else involved to have an accounting, not just a monetary accounting but a full accounting of all the decisions made on the Royal Theatre. Transparency, a review of full accounting, a reckoning of what went wrong or what went well. Because if we do not, it did not need to happen. We were given a gift and it, we blew it. So if we don't learn from our mistakes, we will repeat them.

So please I implore you let's have an accounting on every decision and why we didn't contact our county supervisors. Bob Nelson did not know we were in trouble. Corey Bantalon The night, the morning after. It was decided to stop construction. He called me at nine in the morning, he's Steve Levin, Lebanon's

UnidentifiedMayorProposed · by role12:49

Lebanon.

GuestMelanie BackerCity ManagerProposedself-stated12:49

Yes. Chief of Staff called me the morning after in shock asking me why the decision was made. They didn't know and I'm wondering if Congressman Carbajal knew or Senator Limon did they know? And Did the city reach out for help? So please, let's have a review. The citizens need to know there needs to be an accounting because if we don't history will be repeated and you know if we think our county supervisors and our congressman and our state senator Lamone are they going to support us in the future so please let's have an accounting thank you.

UnidentifiedMayorProposed · by role13:37

Thank you Anyone else out there? 7B. All right, sorry about that. All right, see no further speaker slips will go to item six ceremonial ceremonial calendar. The first one is proclamation regarding 60th anniversary of Santa Barbara County Association of governments wants to step up. Okay. Hi, Marge. Go ahead you're going to identify yourself and the staff.

PresenterMargie CurranSanta Barbara County Association of Governments and thank you for being here isProposedself-stated14:23

Sure I'm Margie Curran and the Executive Director of Santa Barbara County Association of Governments and thank you for being here is now the right time for my comments or? Yes please

UnidentifiedMayorProposed · by role14:31

go ahead and then i'm gonna go with the proclamation so

PresenterMargie CurranSanta Barbara County Association of Governments and thank you for being here isProposedself-stated14:33

Mayor Julian members of the City Council thank you for this recognition it's an honor to be here on behalf of SBCAG Santa Barbara County Association of Governments as we celebrate our 60th anniversary and I have a little gift here if I could hand this to somebody to pass out Thank you. I'm also joined this evening by Mike Becker, who is our director of planning at SBCAG and Shannon Kern who's also an employee of Goleta but she's also my daughter so she really wanted to come to Goleta so she decided

UnidentifiedMayorProposed · by role15:08

to...

PresenterMargie CurranSanta Barbara County Association of Governments and thank you for being here isProposedself-stated15:11

And she's also our photographer for today so when the time is right for that as well. So Guadalupe holds a special place in SBCAG's history. The city was one of the founding members of the original regional partnership that became SBCAG, joining the cities and counties and joining the other the county and the other cities of Carpentria, Lompoc, Santa Barbara and Santa Maria in 1966.

60 years later that spirit of partnership continues including the work to advance transportation improvements in Guadalupe One way that regional partnership delivers for Guadalupe today is through Measure A. Measure A is Santa Barbara County voters voter approved half cent sales tax for transportation. There's 3.25 million in Measure A funding is committed for Guadeloupe circulation improvements.

Measure A also provides dedicated regional funding for Highway 166 safety and operational improvements. Over the years, that funding has supported improvements along the corridor and enhanced our California highway patrol enforcement. Most recently, SBCAG approved another three-year enhanced enforcement program using more than $200,000 in Measure A cost savings to continue that focused safety along that corridor east and west on Highway 166.

Those Measure A improvements are also helping advance important projects here in Guadalupe. The City of Guadalupe, Caltrans and Santa Barbara SBCAG have joined together on planned improvements along State Routes 1 and 166 including Obispo and Flower Streets. So this improvement will cover all the way from Guadalupe all the way to Santa Maria and it's a collaborative process.

and a project. It includes new traffic signals, turn lanes, sidewalks, bike lanes and other improvements intended to improve safety and access throughout this growing part of this community. Guadalupe's Measure A circulation funding along with regional Highway 166 funding is helping leverage our state and federal resources in investments as part of this broader project.

And our partnership on 166 is also about planning for what comes next The State Route 166 Comprehensive Corridor Study that we just finished brought Santa Barbara together with Guadalupe, Santa Maria and the County and Caltrans to look at the future of this important connection between Guadalupe and Santa Maria. Guadalupe has a direct role in that work, helping identify needs and priorities along the corridor. This study gives our agency a roadmap for future improvements and helps position

0:17 – 0:2312 turns

PresenterMargie CurranSanta Barbara County Association of Governments and thank you for being here isProposedself-stated17:53

the region to pursue state and federal resources as those opportunities become available. That same kind of long-term planning is happening elsewhere throughout the county. SB CAG is working with Santa Maria and the county in Caltrans on the State Route 135 comprehensive corridor study through Santa Maria and Orca. So this planning is happening countywide, and that's really what brings us back to where Guadalupe and his regional partners started 60 years ago. We work better when we work on them together People travel across our city and county lines every day to get to work, school and appointments at home. And our transportation system has to work across those boundaries too.

So on behalf of the SBCAG Board of Directors staff thank you for this recognition and being part of this partnership from the beginning and for your continued work uh to today and we look forward to what we can accomplish in the next 60 years ahead. Thank you so much.

UnidentifiedMayorProposed · by role18:54

Thank you I'm going to cut for that because it's very important.

UnidentifiedUnidentified speaker 2Proposed18:58

Thank you.

UnidentifiedMayorProposed · by role19:00

I think over the last several years, there was a lot of money has come into Sandbar County regard as a result of SPCAG billion dollars fixing the roads. And a lot of it went to the South County before and thanks SPCAG and the board of directors for actually splitting that in half in terms of half the money is gonna go to South County. Half part of the money's gonna go to North County and the middle goes to the county Really appreciate that because part of the projects that actually touch Guadalupe in terms of its roads is going to be about 37 million, not including the bridge. Yeah, not including Santa Maria River Bridge. That's a lot of money in the next four years three or four years when these roads are completed these Our community is gonna stand out, it's gonna shine.

And it's up to us to benefit from that by our downtown area which needs some help and then when Pasadena comes in and that new signalization project that's gonna go in the next several years, that's really going to be a godsend to the community where the homes are gonna be built, commercial areas can be built out once that road is complete you're gonna have sidewalks on both sides, you're gonna have fence on both sides just gonna be really neat project Back in 1985, and I pulled this up many years ago where the actual railroad was starting to wanted to do something regarding the train tracks but then that dropped. When you have us when you have Caltrans folks that new ones come on they say well We're going to change that. When it came to the roundabout here that was proposed at Obispo Street, community residents didn't want that, businesses didn't want that so there's an actual signalization there.

Caltrans in support with SPCAG staff sat down at this table to say we're taking lead on this and the Southern Pacific Railroad is going to acquiesce They're giving to the SPCAG and staff and Caltrans to make this happen. So there's a lot of work to it. It's amazing how many entities just looking over a ditch, how many entities you have to touch in order to make that happen and it's been It's without SBCAG staff, and you've got some really sharp individuals on your staff that really know what they're doing. And their connections with Caltrans is a very important one. It's really significant so I really appreciate SBCAG and warn for us SBCAG and Caltrans We'd be out here and maybe a dirt road in a couple of years. But this, in a matter of three or four years, this place is gonna shine when it regarding the...

Even today you see if you go down Highway 1 to the bridge, the work that's being done for the ADA compliance, the bulb outs and then eventually street repavement and then the signalization. And that's gonna really be an asset to our community so. Do you want me to read this proclamation? You don't have

PresenterMargie CurranSanta Barbara County Association of Governments and thank you for being here isProposedself-stated22:06

to read it.

UnidentifiedUnidentified speaker 2Proposed22:07

I've been talking up good things about ICQ, but I do want a photo op so I don't know if what's appropriate. Do I come up to you or you

UnidentifiedMayorProposed · by role22:13

come to me? We'll go down here with all of us. Yes. Okay yeah. You can come on up here. Come on up

UnidentifiedUnidentified speaker 3Proposed22:24

here.

UnidentifiedMayorProposed · by role22:25

Yeah yes you are. Oh okay so you have to repeat that. Did

PresenterMargie CurranSanta Barbara County Association of Governments and thank you for being here isProposedself-stated22:36

you train her well? I

UnidentifiedMayorProposed · by role22:37

did. Thank you for making the trip. Alright, good! We'll see you tomorrow. Okay, please we're gonna fix the audio. We heard that.

UnidentifiedUnidentified speaker 3Proposed23:14

Yeah I wonder if Amelia can hear me now will you text her back?

0:23 – 0:309 turns

PresenterMargie CurranSanta Barbara County Association of Governments and thank you for being here isProposedself-stated23:20

Was this not on maybe it could be that

UnidentifiedUnidentified speaker 3Proposed23:24

but if they're not hearing the mayor he's is on so we heard you thank you.

UnidentifiedMayorProposed · by role23:38

Okay, all right. Okay the next proclamation is recognized in October as Filipino American History Month and let's see a lot of history for the Filipinos here I don't know if there's anybody here to receive this but i'll read it anyway because I think it's I know it's important Recognizing October 26th as Filipino American History Month, whereas the heritage of the Filipino people enriches our own culture and we welcome the history, culture and contribution of the Filipino-American community to our city state and a nation. And whereas Filipino American History Month was established in 1988 to commemorate the arrival of the first Filipinos who landed in what is now Morro Bay California on October 18th 1587.

And whereas the Philippine American National Historical Society, FANS, recognized the year 1763 as the date of the first permanent Filipino settlement in the United States in St. Malo Parish, Louisiana and whereas the California Department of Education first recognized October As Filipino American History Month in 2006, I place it on a celebration calendar while the 111th Congress of United States and California State Legislature also gave recognition.

And whereas for generations the United States of America has been fortified by the talents and efforts of its diverse residents of Filipino descent And whereas the Filipino American community continues to accomplish its goal, to foster understanding through development, promotion and preservation of Filipino values, culture and tradition. These citizens have truly made a difference in their professional and civic involvement will continue to enrich our communities far into the future. Now therefore be it resolved by the virtue of an authority vested in me as mayor on behalf of the city of Guadalupe City Council I do here proclaim the October 26th as Philippine American History Month.

So Amelia, come and pick up the proclamation so thank you all for that. Okay Okay, now we'll go to item C proclamation regarding October 26 as Breast Cancer Awareness Month.

UnidentifiedUnidentified speaker 3Proposed26:07

Recognizing October 2026 is Breast Cancer Awareness Month whereas breast cancer is one of the most commonly diagnosed cancers among women and whereas Breast Cancer Awareness Month began in 1985 As a partnership between the American Cancer Society and imperial chemical industries pharmaceuticals AstraZeneca, and whereas the emotional physical and financial burdens of breast cancer significantly impact not only patients but also their families caregivers and communities requiring comprehensive support and resources for all those affected.

And whereas the American Cancer Society continues to support vital research and educate, educate our community. And Americans about the risks of breast cancer and whereas increased breast cancer screenings increases early detection reduces deaths. Increases life expectancy, decreases late stage cancer diagnoses and increases five year survival rates. And whereas this is the opportunity for the city of Guadalupe and all the community to go pink in October to raise awareness, promote early screening and honor those affected by breast cancer. Now, therefore be it resolved that by the virtue of the authority vested in the mayor and on behalf of the City Council of the city of Guadalupe we do hereby proclaim the month of October 2026 Breast Cancer Awareness Month and ask all members of the Guadalupe community to join in this worthwhile cause to celebrate successes support those affected by breast cancer.

And remember those who have lost.

UnidentifiedMayorProposed · by role27:34

Thank you. That's very important. Yes. All right, the next proclamation. I don't know if anybody here to receive that but thanks for reading that. Proclamation we're going to recognize on October 12th 2026 as Indigenous Peoples Day. Christina?

UnidentifiedUnidentified speaker 4Proposed27:50

Recognizing October 12 as Indigenous Peoples Day, whereas a city of Guadalupe is located on the ancestral lands of indigenous people who have stewarded these lands for generations. And we honor their enduring relationship with this region and where areas as Indigenous People's Day recognizes and celebrates The rich cultures, traditions, contributions and resilience of Native people past and present. And whereas California is home to more Native American tribes than any other state each with unique histories languages and cultures that continue to thrive and enrich our communities today And whereas the Central Coast region, including the land on which Guadalupe now stands is historically home to the Chumash people whose deep connections to the land water and natural resources enters and is vital part of the regions heritage.

And we're asked for many years indigenous voices and histories have been marginalized or misrepresented. And this day serves as a step towards truth healing and justice And whereas the city of Guadalupe values diversity, inclusion and equity and reaffirms its commitment to uplifting indigenous communities and preserving indigenous heritage. And whereas recognizing indigenous people they encourages reflection education and dialogue that fosters mutual respect any more accurate understanding of our shared history.

Now therefore it be resolved that by the virtue and authority of the mayor Of the city of Guadalupe do hereby proclaim October 12 as Indigenous Peoples Day.

UnidentifiedMayorProposed · by role29:26

Good. Thank you. All right, item seven. Consent calendar, the following items are presented in City Council approval without discussion as a single agenda item. In order to expedite the meeting should a council member wish to discuss or disprove an item it must be dropped from the blanket motion of approval and considered as a separate item. I have one request to speak but is there a council person that wishes to pull an item?

UnidentifiedUnidentified speaker 4Proposed29:55

No.

UnidentifiedMayorProposed · by role29:57

Okay. Mayor, why don't you come up. You had a question regarding a particular item on the payment?

0:30 – 0:3515 turns

CommentMary BaylorProposedself-stated30:10

Good evening, Council. My name is Mary Baylor and I wanted to pull...I was surprised to see under the warrants that there was a payment to Tom Brandeberry for the Royal Theatre for a little over $6700 and I want to bring this up because the project was cancelled on July 28th and going back over my notes in January 27th of this year, the City Administrator let everyone know that he was stepping down as the Project Manager Then in March, you guys voted to have him lead the capital campaign.

You also said that there would be no financial impact at that time and if there were financial impact you would bring it back to the council to vote on. And you said that you would bring any changes to his contract, also back to the city council to vote on. It's hard to find this information. I've spent many hours on the website looking through every single agenda item, but I cannot find when it was brought back.

So I am understanding that there is obviously wrap up with the project, but I think I looked back over and in the seven months since he officially stepped down as project manager and was essentially only agreed upon by the city to run the capital campaign has been paid almost $54,000 of which there's not a lot of information for the public to see that totally accounted for every single piece of that. And my recommendation is that the council pull this item, I don't know the procedural process and that unless every council member knows exactly where every dollar of that 6700 came from that you're voting on today for a project that was canceled in July, of which he was only supposed to be running the capital campaign portion if he was doing other aspects of it That knowledge should be out there and that information should be available.

And I think it behooves everyone considering the financial state of the city to understand where $55,000 has gone in the last seven months of someone who abstainably stepped back from his role and was only supposed to be doing a capital campaign of which generously maybe $500,000 was raised we don't have that information anywhere because that's not been given to the public since the project ended I just think more information should be provided and council should know exactly where that accounting is coming from before approving another $6,700 for a project that ended quite a bit ago. So thank you so

UnidentifiedMayorProposed · by role32:35

much David and to Eli any comments on it?

UnidentifiedUnidentified speaker 5Proposed32:42

Well i can speak on the contract ending or the project stopping in At the end of July, Tom was still doing the grant reconciliation with the EDA. And the invoice that is on here is his final check.

UnidentifiedMayorProposed · by role33:05

That's a close-up?

UnidentifiedUnidentified speaker 5Proposed33:06

Correct. As for the rest I would have to go back through notes and give a definitive answer.

UnidentifiedMayorProposed · by role33:16

You know you keep raising your hand up there if you want to speak Come on over here.

GuestMelanie BackerCity ManagerProposedself-stated33:24

Melanie again. Well, I just have a question for David because when Tom stepped down as project manager and then it came up that he would be campaign manager. I asked you directly after a meeting is he going to be paid for that? And you said no, he would not be paid as a campaign manager. September 18th, it says he's being paid over $6700 as a campaign manager. So you didn't, I want transparency around here- Okay so I said

UnidentifiedUnidentified speaker 5Proposed34:08

he wouldn't be paid more than his contract right?

GuestMelanie BackerCity ManagerProposedself-stated34:12

No, you said he would not be paid as a campaign manager. I said he wouldn't be

UnidentifiedUnidentified speaker 5Proposed34:15

paid more than his contract because he's not gonna get paid more than his contract was already.

GuestMelanie BackerCity ManagerProposedself-stated34:20

Okay, so people can fail or quit and they still get paid. Is that what you're saying? Or is that what the city's saying?

UnidentifiedUnidentified speaker 3Proposed34:30

Unfortunately, yeah, I mean when people quit or fail, you still get paid if you worked. I mean unfortunately that's just how it is. Well, I still think there should be a reckoning. The contract ever changed to where he was only doing a capital campaign. So I agree with you, I think there needs to be more transparency. I think there's a lot that needs to happen with this but um he was still working on the project my understanding and he has to get paid for the work he did so

not transcribed≈12s of audible speech the AI couldn’t make out▸ listen
GuestMelanie BackerCity ManagerProposedself-stated35:13

okay

UnidentifiedUnidentified speaker 3Proposed35:14

i mean unfortunately that's just the reality you know how well then I

GuestMelanie BackerCity ManagerProposedself-stated35:17

think there should be accountability on a great opportunity that the city did not handle well thank you

0:35 – 0:5822 turns

UnidentifiedMayorProposed · by role35:31

You got 10 seconds, but

GuestMelanie BackerCity ManagerProposedself-stated35:32

okay. Our our both of our mayor candidates last night spoke about wanting stuff for youth wanting things to do for youth and economic development and you had a great opportunity with the Royal Theater to be a cornerstone for youth and people over 18 to learn You didn't shepherd it and it's gone. So just I think the whole city needs to learn lessons if we don't learn what are we here for? Well, just repeat it. So thank you.

UnidentifiedUnidentified speaker 3Proposed36:07

Thanks, Melanie. I completely agree with you.

UnidentifiedMayorProposed · by role36:10

All right on that item. That's a warrant as a check been cut. We have any question from the staff and from finance, if checks been good. OK. All right. We don't need comments from you over there in the audience, please. If you want to come up and say... if you want to say something, you come up here and say it but you've already had your time to speak. And it goes back to the council in terms of is there a council member that wishes to pull an item for further discussion?

If not, is there a motion to approve the consent calendar?

UnidentifiedUnidentified speaker 6Proposed36:47

A motion to approve the consent calendar.

UnidentifiedMayorProposed · by role36:50

All those in favor of the motion say aye. We need a second. I'm sorry, any second? Any discussion? All those in favor of the motion say aye.

UnidentifiedUnidentified speaker 6Proposed37:00

Aye.

UnidentifiedMayorProposed · by role37:00

Any nays? All ayes. Next item is Management Reports City Administrator Mr. Trujillo.

UnidentifiedUnidentified speaker 5Proposed37:09

Alright good evening Mr. Mayor, Council Members, staff and community members I'm going to begin with the public works portion. We still have the Amtrak project going on, as well as the Pioneer lift station. The engineer technician should recover $575K for the month of September in reimbursements for those projects. Maintenance department was going, um. Doing pretty good they were going through all the neighborhoods doing all the stop and hold lines.

Um, doing some tree trimming. I'm front of city hall that went kind of crazy trimmed up a lot of the bushes got everything kind of going back online. And they're currently trimming the trees around City Hall. So, they got that going on right now. There's been some repairs at Leroy and O'Connell with paint replacing door stuff. And then water and wastewater are kind of running as normal.

There was a mainline repair right out here in Highway 1 During all that construction stuff, they caught a main line. But they got that all fixed up unfortunately there was some residents impacted by that because after the repair was made. They didn't turn the water back on so 1 of those things that happens, you know, bunch of people doing all the work and then nobody remembers to turn it off. So we apologize for that.

And then there's been a couple of power failures out at the wastewater plant. But the generators have been working properly, you know they've been kicking on so that's good. The grid system is still running good. They had to replace a little sump pump that's kind of helping it but that's working out great. Thanks to that piece we got from Moor Bay that they donated to us. So, you know, that'll help us not have to hopefully dredge those ponds for a while and they've been doing brush clearing out at the overflow ponds out towards the levee area They went in there with city-owned equipment instead of trying to contract it, and they found out that they could do it themselves. So, you know, it's been good out there.

Again, with the City stuff going on, Las Mujeres, you know, it is doing pretty good. We've had some hiccups here and there but Overall, it's working out pretty great. Amtrak, you can see they got a lot of dirt work. They're putting in pavers. You can kind of see some design stuff going on if you kinda drive slow or take a peek I guess. You can kinda see how the pavers and the concrete house are gonna act. It looks like it's coming out pretty good.

So there was a new home builder law Um, AB 1621 that was signed in. I don't think it takes effect until next calendar year but that's going to make it to where local agencies can only do 2 rounds of plan checks without having justification so that'll probably speed up a little bit of review process because the plan checker won't be able to hold it Um, negligently so that'll help speed that through.

And again timelines I haven't heard any timelines shift as far as highway 1 still late December to middle of January in that time frame and still looking first week in November to Thanksgiving timeframe for Amtrak pending weather. With Royal Theater, we are still going back and forth with contractors to kind of get the final reconciliation of their costs. I think it's gonna be right around the ballpark of what we're expecting it to be so the amount of funds we'll have left will still be right around one and a half-ish million But that's still based on their closing costs.

Last week when we spoke, there were still a lot of forecasted numbers in there not solid numbers so we're supposed to meet again Friday and get some more solid info and then we'll be able to go from there. The other thing we got going is Loris College is gonna be coming to the Senior Center Uh, they're doing AI workshops starting in November. 6 to 7 PM it's going to be 4. The email said 5 weeks, but there's only 4 core states on here.

So I'm assuming it's only 4 weeks starting November 5th through December 3rd. And we're gonna have this posted in the hallway. It's got a QR code so you can register. And it's how to use AI for resumes and emails and time management kind of stuff. So, got some stuff going on. Any questions?

UnidentifiedUnidentified speaker 3Proposed43:15

When did you say the Amtrak station was gonna be complete?

UnidentifiedUnidentified speaker 5Proposed43:20

It's estimated November 9th but I would say by Thanksgiving.

UnidentifiedUnidentified speaker 3Proposed43:24

Okay that's

UnidentifiedUnidentified speaker 5Proposed43:25

what I thought you said early. It's a pending weather. Got it.

UnidentifiedUnidentified speaker 3Proposed43:29

And then regarding the Royal Theater, I know you're still working with contractors and trying to figure all that. But after we figure out the game plan as our residents have asked do you think we could schedule maybe not at council maybe independently lessons learned on that so we can discuss the issues?

UnidentifiedUnidentified speaker 5Proposed43:48

Yeah. So it's kind of hard to do any kind of like after action or hot wash sort of speak when you don't have all the information right You can do lessons learned so far, but you can't do lesson learned overall. And I think it's a necessity. Anytime our project fails, you want to find out why? How? You don't want to look for blame, but you want to look at how can things be different later because we do have grants that are still in the oven that are cooking right now. So we have to figure out How did we mess this one up? And how do we learn from it and how do we make it to where, you know the community doesn't have to suffer later on.

UnidentifiedUnidentified speaker 3Proposed44:31

Definitely so So yes,

UnidentifiedUnidentified speaker 5Proposed44:32

yes

UnidentifiedUnidentified speaker 3Proposed44:33

okay thanks.

UnidentifiedMayorProposed · by role44:34

And I think, and I know that our auditors will be speaking on this. Some of the roadblocks that we had in getting to this point, in terms of the finance and looking at delays. And I'm not going to go into detail, I think Eli and the auditors will. Yeah,

UnidentifiedUnidentified speaker 5Proposed44:52

I'm pretty sure if we would have audited numbers 12 months ago, I don't think this project would have kicked off. Because I think we would have found that the general fund has little to zero money and starting this project would have bankrupted the city. I think that's what we'll find. I could be wrong, I hope i'm wrong but I don't think I'm that far off.

UnidentifiedMayorProposed · by role45:16

Well lessons learned and I think the individuals who spoke today are basically significant it's true. How did we get to this point? And like you talked about hot wash where do we how do we get to that point or we don't do it again so All right, any questions of David? Jeff, I know you have a report here. Do you want to speak on this or are you good with what we've got posted? Okay.

Then we'll go to Public Director, Director of Public Safety.

CommentSunday I'veProposed · by introduction45:48

Thank you Mr. Mayor, Council, staff and our community members. I apologize for getting the report now been kind of tied up. So we will get this to Juana so that we can be able to put this on the website. If I can go quickly through here just some of the things as far as public safety has been involved in, in the previous weeks or so. We've worked with outside social agency with Pathpointe. So they have three separate residential locations available for mental and homeless individuals.

We've had a slight uptick two of our Prior homeless individuals come back some come from the detox. So, some are behaving but we got at least a couple new ones. So be working with path point or whatever to see if we can find them some type of lodging that's not going to be in our public way. The e-bikes and scooter that we've been seeing throughout the city.

I've been gathering information from CHP throughout the state, California Police Chiefs Association so i'm going to provide an information only e-bike and scooter enforcement type program for uh to the City Council and already spoken had a meeting with the superintendent of Guadalupe school district so I already developed a powerpoint But the laws are already in place, but we want to be able to do it with a partnership with the Guadalupe Union School District. So maybe I'm going to be requesting for the school board to follow the Orcutt Union School District where they put a full ban of powered mobility vehicles on school grounds that way it'll assist us when we kick in our enforcement type models.

I'm part of the community corrections partnership. You have the sheriff's probation officers, a lot of different social agencies district attorney's office through AB 109, the public safety realignment at so the 13th Santa Barbara County. compliance response teams. We are allocated $5,000 to the Guadalupe Police Department and that'll be for overtime operations related to parole and probationers so we'll be setting up warrant apprehensions and searches for any parole violators or probationers. So that's money that is allocated on a yearly basis We're going to make sure that we utilize ours to make sure that individuals that are in that category are doing what they're supposed to be doing.

There's information, I think it came out our city administrator kind of shared with some of the city workers about LAFCO. Their report came out and it's nice sometimes to look at what we're doing as a police department for effectiveness clearance rates and what that is as far as for us to any law enforcement goes out make arrests and so forth citizens like to know you know if you're going to make a report What is the rate of completion of those cases, incidents that have occurred.

Everyone saw I think, I think the one Los Angeles PD had one where they think they had several years of backup of rape test kits that were years backed up. Yeah, and so that just erodes public trust. What we're seeing right now you can see there the clearance rates overall fluctuate between 2024 from a low of 2.9 to 100%. Well, the average rate is 44.6% in the county of Santa Barbara Guadalupe's PD's clearance rate for violent crimes is 71.8%. We are the highest in the county of Santa Barbara for our clearance rate for all crimes reported. For a jurisdictional comparison, clearance rates for the five years 2024 to 2020-24 We're clearing violent crimes and property crimes were at 71.8% and 13.7%, respectively, these are these clearance rates are both higher than national average national average for violent crimes is 46%.

And 16% for just property. So, for similar size jurisdiction agencies measured by this population and then you look at all for the with the overall highest clearance rates are from the city of Guadalupe and the lowest is Isla Vista. So we're at 45%. So so we're at that national level but actually for violent crimes were at 71.8%. That's something that we take a lot of pride in here in the county.

Through the public safety park security program, our camera security program citizens gave us a call that someone had been reported driving a vehicle into Los Mejeres Park onto the skating ramp. We checked the cameras. I have the officer here, it was kind of nice. I gave him the task. He enhanced it, found the license plate, did more research, found the perpetrator who lived in Santa Maria.

He went there made the actual arrest and I'm mailing a talk with our city administrator so I'll be mailing the individual a letter that he is no longer allowed to come at least for a year into the park and or he'll be arrested again. So it's nice to see all that cooperation, and we do have a positive outcome out of that. We're working with the principal from the junior high. We have the schedule for all the athletic events so she requested that if we could assist at Obispo in Maine most of the events would probably finish by 7 or 8 p.m. at night So we'll try to have officers as we possibly can. And there is a crossing guard there at night, I think one was almost hit last time. So we'll be having a presence there to try and make sure our kids get across safely.

We're still working on trying to expedite the fireworks enforcement hearings. We have gotten a lot of payments but we still have several hearings to put together. Right now we're working on revising the administrative and enforcement structure for the City Code Compliance Program since we had to eliminate that position due to the budget. So I'll be working with our city administrators, see how we're going to spread that around so that we can still do code compliance within the city.

Working with the Guadalupe Senior Center, we had to revise the senior volunteer program that we put together and that we did get a grant award. We had a meeting with the people that provided the grant to hire and employ senior citizens in the community. So I'm working with Cynthia right now to develop the exact job duties because they already have several people that they have in the pipeline so it's got to get them out Working. Guadalupe Public Safety, we have a mentorship and internship program that we've been going it's pretty much Monday through Saturday either they're calling us or they're coming into the office or we're meeting them right now we have nine middle school and junior high school participants four high school participants seven college and adult participants and we got six Guadalupe City employees I got one sitting right here who i mentor gonna be losing him eventually which is Setback of a mentorship program.

So also public safety, this last weekend on Friday and Sunday we had two separate incidents where we had ice come into town. We saw this on social media so we have the information for the family of at least one of the individuals that was stopped so we can at least be able to inform them of what occurred with their family member I was asked to meet with a canine programming representative regarding developing and delivering a canine wellness program.

I guess the Central Coast area CHP have 11 separate offices And they were interested in our canine wellness program doing here, if I would lead that and kind of put together. And then also they want to possibly look at something statewide and out of possibly out of Sacramento. So during our discussions my only thing is if we do something like that, I want to develop a Guadalupe Canine Wellness Training Center here in our city If we kind of push that through says if you're going to use.

I should say my dog and me, then I work here since so I'm not going anywhere. Let's let's build a center here. So, um, that was very positive so now we're waiting for 1 of the commissioners, I guess, to. Sit down and see how we're going to possibly hopefully make this happen. During the police chief, sheriffs and district attorneys monthly meeting we had a presentation of a new DUI alcohol awareness program aimed at middle school students so I also had a meeting with the Guadalupe Union School District Superintendent.

I discussed it it's an offshoot of the previous high school 15 minutes that was presented by a mother whose son was killed by DUI. And so I'm gonna send him some of the material, so he can look at see if this is something that we might be able to look at for our middle school students since that's where it usually starts. So before we have police officer Chris Roscoe, he's accepting employment offer with the Grover Beach Police Department so his last day is going to be Friday October 23.

And we have two additional police officers in a background hiring stages with other law enforcement departments. Matter of fact, one came in today to get his live scan for the other department that they requested. So I'll be bugging Sylvia as usual to help us to see if we can somewhat maintain at least the minimum staffing that we do have. Through Sylvia's office, we completed the interview process, the Guadalupe Fire Captain position.

So I completed the Chiefs interviews this afternoon with the candidates and hopefully make a decision before the end of the week. We just finished completing it. It's been a while going through all the paperwork, but we completed the CCW concealed carry weapon license permit process since it was pushed back to all the local agencies instead of being the sheriff.

So as soon as possible, we'll try to post that on. We've been getting a couple of requests so we'll try to put it on the website as soon as we possibly can and last public safety personnel fire police they host an ice cream social with the mayor want to talk about that later on at the Guadalupe Veterans Building to honor appreciate our Guadalupe veterans. That's my report for any questions

not transcribed≈9s of audible speech the AI couldn’t make out▸ listen
not transcribed≈8s of audible speech the AI couldn’t make out▸ listen
not transcribed≈7s of audible speech the AI couldn’t make out▸ listen

0:58 – 1:0425 turns

UnidentifiedUnidentified speaker 4Proposed58:16

Welcome to hear that we're losing some good officers to other cities. I have a few questions though, it's great to see that we have a mentorship program are all these participants Guadalupe residents?

CommentSunday I'veProposed · by introduction58:31

Not not all no but the majority the younger ones are some of the adults they get word-of-mouth but we've got to be honest I've turned a lot of people away

UnidentifiedUnidentified speaker 4Proposed58:42

Okay, do we have funding for this to be able to provide services to outside residents when our budget is kind of you know up in the air?

CommentSunday I'veProposed · by introduction58:50

There is no cost involved. Officer's time is money. Well this is my time I'm the one pretty much doing it so it's in between whatever work I got they'll come in um we had some kids I forgot one lives around the corner After school, he comes in and he'll come into our break room. Bring his school materials. And a lot of times I'll give reading assignments he brings it back and, and we'll just talk about just in general what's going on with him. Because the mom only speaks Spanish, so that's one.

But a lot of the others is either I'm calling Zoom or they'll make an appointment and our front staff will let them know I'm in come in and I'll square an hour for them.

not transcribed≈8s of audible speech the AI couldn’t make out▸ listen
UnidentifiedUnidentified speaker 4Proposed59:39

The only reason I'm worried is we have a lot of overtime. We have to be very responsible with the money that we have. You know, I grew up in Guadalupe and I did not have a strong relationship with police officers so you know, I believe that we do need to invest in our local youth but if we have to also be careful with our resources and careful with your time and your time management and the money that we have because we don't have very much. So I just wanted to make sure that I share my concern with no cost

CommentSunday I'veProposed · by introduction1:00:07

The only person that's affected is the wife.

UnidentifiedUnidentified speaker 4Proposed1:00:15

I was reached out by an executive director of a local nonprofit today and they just shared that one of their volunteer patrollers were stopped in regards to them following ICE, and I was wondering if you had any information in regards to this?

CommentSunday I'veProposed · by introduction1:00:30

No, I don't. I don't know about this incident.

UnidentifiedUnidentified speaker 4Proposed1:00:33

Okay. Can I happen? They just said in Guadalupe they just called me they were very distraught saying I don t you know, I don't trust the cities, I don't trust the police and I was just curious if you had any information I can reach back out but I didn't have time today. I work nine to five, six o'clock is council. So for the department how lawful is observation? How was that treated by the department?

For volunteers as you know if I'm out in the...I work a lot with these volunteers, I'm a volunteer myself what does that look like for the department? Lawful observation by community members when they see federal

CommentSunday I'veProposed · by introduction1:01:10

agents. Like we discussed Sunday, I think we can yeah we met Sunday. It's it's kind of twofold. And we just want to make sure that our police department is not put in the middle. Okay. I explained over there with you is, it's great to be a great witness, but you should not interfere and So that is something we talked about. I wish we could look at some kind of training. You can take the pictures, you can stand but give that space. And I had officer Omar Ruiz he had to assist me because we had a citizen when I was talking to a vendor, the citizen just walked right between the vendor and I and stuff like that. Well, but I'm talking about the whole observation. I think that's what you're saying. What should the citizen

UnidentifiedUnidentified speaker 4Proposed1:02:04

do? Specifically to federal agents

CommentSunday I'veProposed · by introduction1:02:08

Okay. Let me make sure I understand exactly what your question is, is what should citizens do concerning federal agents?

UnidentifiedUnidentified speaker 4Proposed1:02:14

How's the department reacting to residents if they're doing lawful observations to federal officers? How will the department treat that? How would they interact with community members?

CommentSunday I'veProposed · by introduction1:02:25

Nothing.

UnidentifiedUnidentified speaker 4Proposed1:02:26

What does that look

CommentSunday I'veProposed · by introduction1:02:26

like? There's nothing for us to do. If a citizen calls us then we'll explain to them what their rights are But other than that, we're, we're not going to interfere. Because there's nothing for us to do and will just explain to the citizen become a good witness Do not interfere. But

UnidentifiedUnidentified speaker 4Proposed1:02:50

I just wanted to make sure that I got that because that's what I'm getting from residents like our police can interfere me from stopping you know. When I'm doing observation. So, I just wanted to get that clarity from you and make sure that the officers also know where the department stands.

CommentSunday I'veProposed · by introduction1:03:06

And we would treat that like any other situation if ICE called us, if they're on a scene and they feel that citizens are interfering with whatever operations that they're doing as we would do any other regular call, the officer would respond, make an evaluation. If there is any loss being broken And they would take the proper action. If there's no laws being broken, then they would stand back and observe.

UnidentifiedUnidentified speaker 4Proposed1:03:34

Okay. Because I know the difference between lawful observation and then impeding we can't impede officers. So mine is just my question is solely on lawful observation.

CommentSunday I'veProposed · by introduction1:03:45

And I appreciate you know that, but not everybody gets that. So that's

UnidentifiedUnidentified speaker 4Proposed1:03:51

why I just want to make sure clarity for my peace of mind with all these questions and people.

CommentSunday I'veProposed · by introduction1:03:56

That's

UnidentifiedUnidentified speaker 4Proposed1:03:56

what we're

CommentSunday I'veProposed · by introduction1:03:56

here for.

UnidentifiedUnidentified speaker 4Proposed1:03:57

OK, thank you. My other question, I see that you met with Canine Programming and that you want to develop and deliver a wellness program is this to the CHP officers? And will they be providing funding for you to develop this?

1:04 – 1:1113 turns

CommentSunday I'veProposed · by introduction1:04:14

If, if I do develop it. One, it'll probably be on my own time and I gotta be honest with you I was offered to kind of leave here and do that. So I was just listening to try and develop, but I'm looking at if there's an opportunity for us to bring business, to bring funding or opportunities to Guadalupe in the position I'm in. I want to be able to leverage that, but if it's not going to benefit us here then it's something that I'll pass on.

UnidentifiedUnidentified speaker 4Proposed1:04:49

Okay you know we just have a I'm challenging budget. Um, I just want to ensure that we're using our resources and our fundings correctly. Thank you for them.

CommentSunday I'veProposed · by introduction1:05:00

Oh yeah no no i got Eli right here he makes sure that I do and David's his backup.

UnidentifiedUnidentified speaker 3Proposed1:05:07

I have a question. Sure please um back to the ice related incidents that you responded to on Saturday and Sunday uh what is when when you hear about that like what is the What do you do when you respond to that? I mean, what how are you your you and your department responding to the ice agents here.

CommentSunday I'veProposed · by introduction1:05:27

And I want to correct it was Friday and Sunday what is going on is I'm. Because I live in the city, I'm on call. So what I've been trying to do is to keep the patrol officer out of the situation. So their advice, call me. I respond and if there's supposed to be any kind of interaction it's gonna be me. So if something is going to happen or go bad or south or whatever, it's me not the officer. On the situation Friday, Officer Omar was there.

I can bring this out, is the owner of the processing plant called said someone called that there's several ice agents in the lot right there at a BISPO in Maine and workers are afraid to come out. He asked me, what can we do? I said, I know nothing about this but I had left the school. I was at their volleyball game. The principal asked me to do that and I earlier told officers the game's gonna probably be over by seven or eight. Says please go to the intersection so we can help the kids get across. So I told him I will drive out there and find out what's going on I get there, there's no one in the lot. I see the officers stationed on both sides of Obispo and Maine, and I see the crossing guard officer Omar advised me that the crossing guards father has a truck that looks like the one that's been on Facebook.

So someone saw the truck and thought it was ice. There was no one there so I let the owner of the processing plant go, there's, there's no agents here. And you have the officers cars because it's dark. It looks like blacked out cars so on thing I can assume is a citizen saw the officer's cars in the truck and assumed Maybe there were ice there, and there wasn't so I responded on Sunday.

The council person called me about a situation I did not know what was going on at the market. I got there because we have a very good working relationship with the businesses there. So one to find out what happened because people weren't sure So I went inside the market, he let me view the cameras. Officer Ruiz was there with me. We saw the camera, saw that it was ICE. We saw the information that they had on as far as their covers and so forth. Then I have contacts with ICE personnel and so forth.

So we make those contacts to ask them what really happened, and it took a little bit but then they got back to me and I shared that with our mayor and with our council person as far as what the operation was and why that particular individual which is public record he had already had Had a order from the judge to be deported and evidently he skipped. And so there was a warrant for him, and I guess they have special teams so it's a team out of Miami that had been tracking him. Uh, found him and made that, um.

Arrest and so we just made sure to secure his vehicle and all his belongings in the store is allowing it to sit there until someone can kind of get the vehicle. So we're trying to. Make sure that everyone's okay. Our first responsibility is safety, since you know we're not there when it's occurring they're not letting us know when they're going to do anything or where they're going to go so you know we're being reactive when we hear something and then too we're trying to at least I'm trying to get on the ground with our officers You know, to have that face contact with our citizens. Because keeping that trust you know it takes a long time to kind of earn that as and this is not helping us.

We live here we have to stay here so we want to make sure that we engage. It's a hard one but we're trying to get as much information correct information out as we possibly can and I think fighting Facebook is a tough one

UnidentifiedUnidentified speaker 3Proposed1:09:51

So just to be clear, so did we only have one ice incident on Sunday and the other one was just a rumored ice incident?

CommentSunday I'veProposed · by introduction1:09:58

I can say is, I was there for the one incident. Okay. I mean, I've seen where people have called said they've seen ice. Yeah. Some other thing and so I only speak to what I know as a fact.

UnidentifiedUnidentified speaker 3Proposed1:10:09

Okay, so Friday you didn't run into any ice and then Sunday I've heard all about that.

CommentSunday I'veProposed · by introduction1:10:14

Right? And those are the only two incidents that I have been a part of and that I have direct knowledge of.

UnidentifiedUnidentified speaker 4Proposed1:10:22

Thank you so much.

UnidentifiedUnidentified speaker 7Proposed1:10:24

Any further questions?

UnidentifiedUnidentified speaker 4Proposed1:10:25

I will just share that. Walking into Masatani's, people were speechless. You had questions they couldn't answer and they were terrified. We had kids in the parking lot asking me ma'am ma'am and some of these these kids see they look like me I thought they were met myself you know is it safe to go inside is Amiga here? You know they're made possibly mixed status families. It's a Sunday morning um they were worried that their parents weren't going to make it home But the residents were thankful that the police presence were there and I heard many thank yous. They just felt comfort at that time, and so thank

UnidentifiedMayorProposed · by role1:11:00

you. Everything regarding ICE is hypersensitive right now. Every community, every block, a car going by that looks like ICE is gonna generate – and it should Some kind of observation in terms of what's happening. So if there's any questions of Chief and as we are here, ask him about what's going on so if you know something and need additional information would you do?

Call him. Omar, do you want to jump in this or no?

1:11 – 1:183 turns

UnidentifiedUnidentified speaker 8Proposed1:11:37

I just want to thank Council Member Hernandez. I was not expecting to see her. I actually got a call from Chief Cash who kind of inquired because like he said, we're not told when things are happening so it's kind of difficult on our behalf because it's a reactive method but I turned around and Council Member Hernandez was there, so I know she said the police presence kind of helped the community. But seeing her presence actually helped me personally and the police department as a whole because it's not an us versus them like Chief said. It's like we're just reacting and my whole goal was educating the community and that's something I've been trying to do that.

We're there to support them. We don't care what you look like, how you speak, what language you speak. We're here to support the community and specifically the Guadalupe community so times are difficult I was actually there during that service call where we were it was actually Isaac the crossing guard and we had a citizen approach us and they didn't believe us even though They were questioning why I was there, why Isaac was there even though I explained it to him. Isaac explained it to him which is a crossing guard that's employed by the school.

They still didn't believe them so times are difficult we get it but I just wanted to reiterate down to the community and council that we're here for our citizens

UnidentifiedMayorProposed · by role1:13:17

We need a special badge. We're here to protect our community. All right, thank you. Thank you both Omar and Chief. All right let's go to the finance director Mr. Eli Martinez.

CommentPublic DirectorProposed · by introduction1:13:35

Thank you, Mr. Mayor Council members staff members of the public. I'm going to try to hit the highlights for the report I'm sure everybody read it so this is going to be the first quarter for this fiscal year ending September 30. These are preliminary and unaudited numbers. The biggest highlight and I would say take it with a grain of salt because, as they say the devil's in the details.

The fund at the first quarter is $1.5 million in deficit. Now keep in mind that the budget that the council approved in July was already forecasted to be $3.6 million in deficit. Now the picture at this point in time is not necessarily as bad as it sounds, there's a lot of timing issues that are causing the deficit to look bigger than it actually is at this point in time.

A lot of prepayments that happened, there was a prepayment to CalPERS that we in effect took advantage of to get a discount for the year. So that's $17,000 back into the city's pocket in cost avoidance just by prepaying also things like JPIA which is a big cost to the city which is liability insurance and workers' compensation They bill once a year at the beginning of the year and that's close to $900,000. So there are some timing issues right here that yes, the general fund is in fact in deficit and we're forecasted to be in deficit but those things are definitely augmenting it.

In reality, the revenue coming in is about 2 1⁄2% slower than budgeted expenses are running about 4.8% higher than expected Some of the bigger real contributors are things like fire overtime, which is about 67% expended of its general budget. Keep in mind we're supposed to be at 25%, at this point in the year or one fourth of the year so we're running very fast on that overtime budget for the Fire Department.

Some other differences that are worth noting, especially on the revenue side are things like property taxes which normally the timing isn't necessarily when we want them. They're going to happen when they happen so usually we get those payments January and May or the two big payments for property taxes There's also some coding issues that we've discovered along the way. These are some of the things that I mentioned at the last meeting where conversion issues last quite some time to get through and this is one of them, payroll tax coding is inflating salary numbers. So you're going to see that in some of the tables The tax is actually part of the salary numbers. It's not supposed to be that way, it's not necessarily going to change the budget in the end it's just going to change that one line item we're working on recategorizing that as well.

On the positive side, more positive side I think water and wastewater are both running a surplus water at $302,000 in surplus and then wastewater at 115,000. Now again take that with a grain of salt It's still early in the year, and as they say anything can happen. These are things that you know wastewater or water if they have a big expense during the year that's unpredicted then you know that can quickly absorb that money.

The biggest thing I probably draw your attention to with respect to the report that I prepared is the cash numbers And there's a chart on the report that shows you that the fluctuations in the cash and how close the city is. And to David's earlier note, with respect to the Royal Theater and some of the reasons why that project needed unfortunately to be halted is because there wasn't a lot of cash in the bank to support the expenditures By February, we're forecasted and keep in mind we're accounting for all the revenues that the city's expected. The expenses of the city is expecting all the grant reimbursements everything if those fall in line by February were down to about $800,000 in general fund money and that's assuming that we got the starting point correct?

Which again is a question mark at this point. So yes, any reimbursement delays for things that we've already forecast can quickly make that situation worse. So keep that in mind. So in summary I'll just close there unless there's any questions but really this is really to receiving file and then you know we as staff will continue monitoring cash, the reimbursements and the spending.

Really there's no budget amendment at this point in time. Questions? Any questions?

1:19 – 1:3215 turns

UnidentifiedUnidentified speaker 5Proposed1:19:03

I need to bring something up, though. Okay in regards to as he was talking revenues starting tomorrow we're going to start shutting off water The city has $250,000 in unpaid water bills. When you look at revenue that's a quarter million dollars back in our bank. Citizens have already received a 30 day notice so tomorrow we're going to start shutting off water.

That'll give residents time to come pay it. We will not shut off water on Fridays but It's serious. Yeah, I mean that's a, I think you said 90 over 90 residents have bills greater than $1,000. So that means that this has been going on for years past practice. Apparently it seems it was 10 or so a month that got shut off. And this is where we are

UnidentifiedMayorProposed · by role1:20:06

now.

UnidentifiedUnidentified speaker 5Proposed1:20:08

You know, this is probably carry over from COVID. It's my understanding there was a lot of relief during COVID when it came to this kind of thing. But you know, that's four years ago. So this is where we're at the city can't continue to support everybody right? Yeah, so $250,000 that's not one person, you know, so there's a lot of people out there they got bills so

CommentPublic DirectorProposed · by introduction1:20:33

okay.

UnidentifiedUnidentified speaker 4Proposed1:20:33

Will there be payment plans available for these residents?

CommentPublic DirectorProposed · by introduction1:20:37

Yeah, let me jump in here and yeah I mean 250,000 is a lot. I think we definitely will be offering a payment plan. We have tiers for people that have larger bills that we can go up to a year legally And if people who have heart can meet the hardship requirements outlined by law, then we can potentially go further than longer than that but it's just going to have to be a everybody gets treated the same based on the same things and.

Those payment plans, if they don't meet them then they will be shut off. And so it's you gotta agree to a payment plan, you gotta meet the requirements, make the payments on time and then get yourself caught up within the time period.

UnidentifiedUnidentified speaker 3Proposed1:21:30

You said that there are 30 days notice that it will be shut off correct? And how long are they past due before they got that notice?

CommentPublic DirectorProposed · by introduction1:21:40

No, it varies. I mean, I think they've got to be at least 60 days to get shut off past due but as David kind of alluded to there's a lot that are a lot longer than that. There's some very large balances. There's some close to $5,000 and so yeah, there's a lotta big balances. Yeah, it's gonna be...I think it's gonna be an issue. It's gonna be challenging.

UnidentifiedMayorProposed · by role1:22:06

Okay, good to be informed about it. It is not a good place to be

UnidentifiedUnidentified speaker 7Proposed1:22:11

Have a question? No.

UnidentifiedMayorProposed · by role1:22:14

All right, any questions of Eli? All right, thank you. Now we go to public hearing highway one lift station replacement project. Jeff can you read that Judy I'm sorry it's a big one i like people who know what's going on so

UnidentifiedCity ClerkProposed · by role1:22:35

Let's see, Highway 1 Lift Station Replacement Project written report. Jeff Vanderhoof, City Engineer. Recommendation that the City Council A receive a presentation from staff and B conduct a public hearing to provide all present with an opportunity comment regarding the Community Development Block Grant CDBG and C adopt resolution number 2026-48. Accepting the completion of the Highway 1 lift station replacement project, authorizing the filling of the notice of completion, authorizing the release of the 5% contract retention to WM Lyles Company following the statutory 30 day lien period provided no liens are filed and authorizing the closure of the Community Development Block Grant CDBG.

UnidentifiedMayorProposed · by role1:23:27

Okay thank you Judy.

UnidentifiedUnidentified speaker 9Proposed1:23:30

Thank you, Mr Mayor and council members in public. This item that's being brought before you is for the highway one lift station. Now, let me give you a little bit background for those of you who are unclear or don't even know what a lift station is. This is a critical portion of our sewer system. As you know, Guadalupe is quite flat and in order to get sewage across the city and to our sewage plant it has to go to a low point and then be pumped up and into another trunk main that goes off so the highway one lift station Can we go to the next slide please.

Yeah, thank you. Thank you. So this is a long time coming project. In fact, it actually started before 2014. For those of you that were around we had a major sewer issue from the trust project where A sewer main burst underneath the railroad and it cost a lot of money for the city to be able to bypass the sewage. And what happened is that we had to secure an easement, and pipe the sewage from the other side of the railroad tracks to the existing lift station which was already at capacity.

So, in 2014 the project was identified in the Wastewater Collection Treatment Plan Masterplan. Plant master plan I should say as critical infrastructure that needed to be replaced. Now this actually historically this actually happened during my first tenure as the city engineer and we hired MKN to do some preliminary plans and those were completed in 2018 After I left the city.

Put together the final bid package for the construction of the highway one lift station, which was advertised in January of 2023. Now just prior to this, the city engineer had applied for a CDBG grant which is a community development block grant and at that time we hadn't heard back so There had been money allocated from the Wastewater Fund to be able to pay for that project.

But the application was actually for two projects, it was for the sewer main and also the lift station. Now the sewer main had already been completed so the grant application was hopeful that we'd be able to get reimbursed Work that are already been done. So what you'll see is that the grant was for a lot more than the final project, and that was because it was originally made based on two separate projects and a possible reimbursement.

So anyway, in February of 2023, the city awarded the contract to W.O. Miles and also Wallace Group for construction management and inspection Then the following month, the city finally received notification that CDBG funds would be available. But they didn't actually become available until January of 2024. So the city put the contract with Guadalupe and Lyles in suspension for essentially an entire year waiting for funding to come through.

That came through in January 2024. That's the month that I started back as the city engineer, so I kind of jumped right into trying to get this done. Unfortunately for a project like this, the effects of COVID were still going on. So there was a lot Materials that could not be procured very quickly. Which included switch gear, electrical switch gear which is critical for operating a plant or the lift station and there was actually an 18 month procurement period for just that so we had a kickoff meeting in January of 2024 the contractor started his procurement process And finally, in July 2025 construction started so this is a very long process.

Can we go to the next screen please? So the city received a community development block grant for 3.5 million dollars and I went through some of the timeline already. The mayor had signed the agreement with HCD for those funds back in October 2023 and then we finally received notification that we got the project in 2024. If you want to go ahead, we'll see some pictures. Well actually if you go, go back and you can, if you look at the pictures. This is what the site looked like before.

And this was just south of Olivera Street on The site of the street, that little mushroom with a green top is our existing lift station. That gives you a little perspective on what you're looking at. That's just the manhole. There is a manhole that goes down but it's pretty small. Then we kicked off this is actually a Google Street View. They actually caught an image of construction starting out here. Now if you want to go ahead and go to the next slide.

So here's a perspective of what the new lift station looks like. You can see the men down in the bottom of this pit, so that's a very very deep hole and the lift station has three pumps some redundancy in there that will help with the project okay next slide These are just some more pictures of the construction. Everything actually went once we got under construction, everything went pretty smoothly. We did have some hiccups with Caltrans because they were starting their work at the same time. OK, go next slide.

So these just continue to be some pictures. Okay, so here are the project costs that we incurred. The actual construction cost for approximately $1.5 million. Construction management and inspection, $125,000. Engineering services during construction, about $84,000 Project management and grant administration, about $30,000 With a total project costs of approximately $1.88 million, and you'll remember that we had over $3 million available.

Let me go to the next slide. So let me go to my notes here. So as part of the requirements for the CDBG grant, the City Council is required to hold a public hearing. Now, ideally this should have happened last year before construction started. None of all of us were aware. Of these, these requirements and we're just finding out about it. HCD has said that's fine. Just make sure you have one now at the end.

So we're holding a public hearing to allow members of the public in the city council to ask questions to speak about this particular project and voice their opinions about it. or four action items, holding the public hearing, approving the completion of the grant, filing of the notice of completion which we always do at the close of these projects. And then after the 30 days notice completion is releasing the retention on the project.

With that I'm available for any questions.

UnidentifiedMayorProposed · by role1:32:16

Okay with that I'm gonna open it up to public hearing 7, what is that? 727 is open to the public hearing. Anybody in the public wish to say anything or add to it but it'll be a public hearing so go ahead and any question from the council in terms of what was presented?

1:32 – 2:1114 turns

UnidentifiedUnidentified speaker 6Proposed1:32:43

So this lift station is operational now. Yes, it is okay yeah and just

UnidentifiedUnidentified speaker 9Proposed1:32:49

a another point of of this is that city's actually working on two lift stations right there's one on Pioneer Street and the 100 Highway one now highway one had to be completed before pioneer because it would have created too much waste coming to the ones. So, we were kind of juggling two projects at the same time and and that Pioneer lift stations been on hold for over a year because we're waiting for the high with one live station.

UnidentifiedUnidentified speaker 6Proposed1:33:20

The Highway 1 lift station and not all the grant money being used, is that rest of that grant money going towards the Pioneer Lift Station?

UnidentifiedUnidentified speaker 9Proposed1:33:28

No. Actually the grant expired at the end of July so we had to scramble to make sure that we got all the work completed before that happened. So this is just a project close out. We didn't spend the money so it goes well. We just never receive it.

UnidentifiedMayorProposed · by role1:33:51

All right, I still can't see the time on it. Is that they'll close the hearing at public hearing at 7 29? What's the wishes of the council?

UnidentifiedUnidentified speaker 4Proposed1:34:01

I will make an adoption and make a motion to adopt resolution number 2026-48. Do

UnidentifiedMayorProposed · by role1:34:10

you want to note that approval on item 2 as per your writing here? So just, if we go down and approve the completion of Highway 1 lift station item number two as he has there. Number three approve the filing of the notice for completion and then all those four items. Yeah if you could just do all four of those

UnidentifiedUnidentified speaker 4Proposed1:34:34

items. I make a motion to receive the presentation, accept the public hearing and adopt resolution number 2026-48. All four

UnidentifiedMayorProposed · by role1:34:42

items? Okay. I'll second that motion. Any discussion? We'll have roll call please.

Roll-call vote Passed 3–0 motion. Any discussion? We'll have roll call · 1 under review
Show transcript
Council Member Pastor Jr. Aye. Council Member Fernandez, aye. Council Member Villegas is absent. Mayor Pro Tem Hernandez, aye. Mayor Jolyon, aye

The resolution passed. Thank you. Those folks have been there a long time. Now to close that street off once it's finished on Pioneer Street would be nice. All right we'll go to item 12. Are we good? We don't need a break are we good for, we're good to go? We're good okay item 12 fiscal year 2022-23 audit completion ARPA compliance and GAN limit reports. Eli.

CommentPublic DirectorProposed · by introduction1:35:37

Thank you Mr. Mayor again council members members of the public staff so this is quite an accomplishment that we're presenting today. We're concluding the fiscal year 22-23 audit, and it feels good to say these are audited numbers I'd love to take credit but really it's based on David's efforts to push this project forward and get it done over the last year, I think.

And so significant this is going to free up some funding at least for the city gives access to some of the money that's been tied up with Audit requirements. But one of the things I just want to highlight here is that, and I have by the way, I have our external auditors Badawi and associates Mitesh and Samuel that are going to be going through a presentation but just to highlight some of the things that came out in the audit that was completed on September 15th Most of the audit opinions were unmodified, which is a good thing. Just in plain English that's what you want. The general fund and some of the government activities had a qualified audit opinion and just to give you some more color on that, the auditor could not verify that With sufficient support for $298,000 in general fund revenue.

So that's where the qualified opinion came and we made a decision that rather than chasing where that was in the books for another two or three years, that it was better to move forward given that it was revenue versus potentially not identifying where money went so this is Not necessarily the best outcome, but it's also not the worst. The water, the wastewater, the transit, the Royal Theater, ARPA and CIP also all received unmodified opinions.

ARPA compliance review was intact and so they were all compliant in all material respects. The FY22-23 GAN limit was $3.6 million So the independent procedures found no exceptions. And then, and again just to reiterate completing this audit really supports work on the remaining outstanding financial statements that we have still pending for fiscal year 2324 and forward so this is going to create hopefully a strong foundation for that and you know we've already been working on Over the last over the last month and a half, and so that's well under the way underway. So I'll maybe pause and hand it over to Mitesh and Samu who are online.

UnidentifiedUnidentified speaker 10Proposed1:38:45

Thank you Eli. And thank you Mr Mayor and members of City Council have short presentation or even not so short but just try to share my screen. It's

UnidentifiedUnidentified speaker 3Proposed1:39:03

going to come through yet. There it goes, OK?

UnidentifiedUnidentified speaker 10Proposed1:39:06

So you should be seeing my presentation and. And again this is the 2023 audit of the city of Guadalupe and this was completed as I mentioned in September and I'll be covering our firm and engagement team just to give a little bit about background about us and the team that did the audit deliverables and scope The areas of primary audit risk that we identified and addressed as part of the audit, the auditor's report. And I have a few slides on the financial statements as well.

Required communications that we need to present to the Council as the auditors. And briefly touch on some of the new accounting pronouncements that will be implemented in 2024 and the following years. And as far as our firm, so essentially we're a firm based in California. We do only governmental audits primarily. Our audit experience is over 25 years primarily with the managing partner Ahmed Badawi And so now we service about 65 governmental audit clients, of which 44 are cities.

We're about 30 employees and touch wood we are at zero lawsuits or legal or other matters that would like to just also stay away from but as far as the engagement team, I was the engagement partner. So I was overall responsible for the audit and support reviewing work and so forth Ahmed Badawi was our quality control reviewer. We did have access to our IT specialist, Omar Rahman, who is a CPA as well and then also on the call here we had our audit manager Samantha Samuel-Michel, who's a CPA and she essentially did a lot of the legwork on the audit and we had two staff assisting her, Angel Lemglasser, who is a CPA as well, and Ahmed Al-Khatab, who's a CPA but he's not licensed in California And as far as the deliverables, so we've issued our report on the annual financial report of the financial statements.

With that, we also issue a report on internal control with financial reporting and on compliance. We do it as required for the ARPA Essentially, this is in lieu of a single audit. When your essentially majority of your funding comes from ARPA or the ARPA triggers a single audit requirement there's an alternative report that can be issued which is this ARPA examination report agreed upon procedures on the GAN limit and then also a letter essentially covering the required communications that I'll be covering later in the slide Sorry, for some reason it always does that.

As far as the audit methodology and this would be a traditional audit approach or in terms of the number of phases in an audit essentially there's a planning phase where we gather information finalize timing of the audit risk assessment or interim phase where we review internal controls processes and assess risks. And then we have a year end phase where we test and validate account balances And lastly, we would have a reporting phase to prepare the audit reports. For 2023 it was bit more of in-betweens but essentially this is what we would normally expect as part of the audit approach and methodology.

As part of the audit, we do identify risks and then we had planned to do audit procedures to address those risks And this is essentially a lot of the risks that I'm going to list here are really risks that are inherent in all audits, but there are few risks that we identify specifically for the city that we essentially had to address and kind of plan for. The first risk that you see here is the risk of management override of controls This is the risk that management may not follow their own policies and procedures since they are the ones responsible for putting in place those policies and procedures.

I often get asked by council and boards of, well how can we get rid of this risk? What else can we do to get rid of this risk? And it's just a risk that theoretically it's always going to be there no matter how many controls you have in place. We address this risk by assigning more experienced staff to more complex areas of the audit incorporating areas of unpredictability, performing testing of manual adjustments done to the accounting records through journal entries.

We review accounting estimates if we identify by scanning through the accounting records any unusual business transactions which are not maybe consistent with the city's operations you can inquire about that and get more information and then also do a lot of inquiries regarding fraud around different city staff One, this is a risk that's more specific to the city.

And this is just the risk of loss of institutional knowledge that essentially when we were performing the audit and as we were completing the audit, we had new individuals taking over and essentially trying to close the books and complete the accounting and figure out the accounting. So with that, we did need to identify that as a risk Because of that, and a response to that is more unnecessarily anything specific to any specific accounts. But just general increased professional skepticism as we perform the audit questioning and scrutinizing things more if they're not completely making sense and then performing additional testing when you consider that necessary.

Another risk is skills knowledge and experience risk And this is just that similar to institutional knowledge risk, but more specifically just our concern that maybe there may not be. It may not be knowledge about many specifics to governmental accounting requirements that we may need to consider that you know we need to question things more or just double check things closer and similarly with that it's just more about Increasing our professional skepticism and then also assigning more experienced staff to areas that are of higher risk, more than what we would normally do.

As far as revenues receivables there's a risk we have to identify referred to as improper revenue recognitions and again this one is a risk that's inherent in all audits almost all audits And essentially, the auditing standards identify revenues as a very significant line item to these stakeholders or users of the financial statements. So they require us to identify it as a very significant area and perform various auditing procedures. So we do a lot of confirmations and validation work on this city's revenues.

And with the proprietary funds, we also do a lot of substantive analytics And comparing revenues to non-financial data. We also have estimates as a significant risk area, so your financial statements do have a lot of estimates in them. So these investment fair values or estimates allowance for collectible accounts is an estimate A lot of the numbers relating to capital assets, such as depreciation expense are estimates. And also your pension and other post-employment benefit liability numbers are estimates.

We did identify specifically relating to payroll, the risk of segregation of duties just because of turnover experience at the city and rotation of duties. There was a risk identified that there may have not been sufficient segregation of duties over payroll and we normally would be doing payroll testing regardless but however with This year's audit, we did pay closer attention to the recording of payroll and testing of payroll to make sure that they were authorized in accordance with the approved rates.

For journal entries similarly, we noted that there was a risk that the general entries may have errors in them because it was just not an adequate review process in place so we did an expanded test of general entries as part of our audit And moving on to the auditor's report, I just wanted to mention that as far as the auditing standards we followed. So our audit was performed in accordance with generally accepted auditing standards. These are a set of rules set by an authoritative body referred to as the AICPA So essentially they dictate how we perform our audit, how we select our samples, best practices, how to prepare our report and so forth. In addition, we also perform the audit in accordance with the government auditing standards and government auditing standards are just supplemental to the generally accepted auditing standards.

So we will perform more procedures and also as we have additional things that we need to comply with training and so forth. As Eli mentioned, overall just to not create any confusion the overall opinion is a qualified opinion but that does not mean that all the financial statements in your report are are qualified. There are different opinion units referred to in the auditor's report, so governmental activities and the general fund are just one of the two – two of the opinion units. However, other opinion units which would be your enterprise funds, all of the enterprise ones, other major special revenue funds and also the aggregate remaining funding information received an unqualified or unmodified opinion Referring to the governmental activities and general fund, the revenues, as Eli mentioned, we could not get support for some of the revenues.

So except for that one item, we consider that the financial statements are fairly stated in all material respects. That means that your significant accounting policies have been applied consistently, estimates are reasonable, and also the lengthy number of disclosures that accompany the financial statements are accurate and complete. And, you know, I debated putting these slides in just because it's a bit outdated information. But this is usually what we would normally include in our presentations and I found maybe someone would find it useful to still refer to but this is a chart going over the past three years from 2023, 2022 and 2021 And in 2023, there was a big increase in cash and investments. And that's primarily from the receipt of two large grants I believe relating to the Royal Theatre in 2023.

The money had yet to be spent at that point. Otherwise there were no other significant changes in assets. As far as liabilities and deferred inflows of resources you can see there is a big increase in unearned revenues And that big increase in unearned revenues are just the unspent grant expenditures. So when you have grants and you haven't spent them yet, they don't meet eligibility criteria to be recognized as revenues for the accounting standpoints so you recognize them as an unearned revenue until you start incurring expenditures and then you would recognize revenue.

You'll see there's an increase in the net pension liability, and that was just because as the city reports a share of the total liability for the cost sharing plan CalPERS. And the overall liability had increased so your share also had increased in 2023. Otherwise there were no other significant items here. This is a chart just looking at the net position or equity, so to speak. So your assets minus your liabilities.

Equity or net position is categorized into three classifications. So you have net investment in capital assets which are the city's capital assets less any debt that was used to acquire capital assets similar to equity in your property And you have restricted. Restricted net position is money that are tied up in contracts or legally required monies to be spent for specific purposes and the remainder is unrestricted, so that's just remaining amounts which are not net investment capital assets or restricted would be considered to be unrestricted.

Moving on to slide 21 here, this is a slide comparing net cost of service to tax revenues. Net cost of service essentially is the cost of your governmental activities such as police, fire programs and so forth offset by any revenues they generate themselves either fees that they charge and also any grants or capital grants that they may receive And essentially, there's always going to be a cost because then normally those activities are expected to be funded by taxes.

And so essentially we're comparing that to your tax revenues. There was an increase in the net cost of service in 2023 compared to 2022 and that's primarily due to essentially in 2022 there was a large grant that was received so a lot of the expenditures were funded The grant, there was also an increase in depreciation expense of about 400,000 due to completed capital projects in 2023.

And also I believe there were some contributions in developers in 2022 that were not in 2023. So that's just a few one-time things but something to take note of I guess or something you may have already noted for 2024 and 2025 On slide 22, this is a slide comparing the City's annual expenditures in the General Fund and comparing the three years of expenditures to your unrestricted fund balance in the General Fund. Unrestricted fund balance would also include any monies that you have set aside for specific purposes so if we may have commit reserves for example for capital projects or things that And from 2021, I think the city was in really bad and like had no fund balance essentially. And then 2022 has one month of fund balance and then in 2023 there's two months of fund balance.

A lot of this could be attributable to ARPA funding that was being received and used by the city so essentially you do have ARPA monies that you had received for that time period That essentially could cover some of your general funds expenditures for revenue loss, but obviously that's not necessarily ongoing revenue. But essentially up to this point the city was growing a fund balance.

And just a few slides more on pension and this is a disclosure referred to as a sensitivity The pension liability that's reported on the city's financial statements is essentially very volatile at times. It's very dependent on the discount rate that's determined by the actuary And they actually determine the discount rate by looking at the long-term investment returns of the pension plan.

Essentially, it's a really good estimate but had the discount rate been 1% lower or 1% higher you can see that liability could have been quite different So for 2023, as of on the financial statements there's a liability recorded for $4.6 million but had the discount rate been 1% lower or 1% higher the liability could have been 7.2 million or 2.4 million so it's just not necessarily to say that one number is more accurate than the other it's just to give you an idea what that range of that liability could be in a reasonable sense Similarly with your other post-employment benefit plans, which is your retiree health care plan.

There's a similar disclosure and you can see here that the change is not as significant compared to pension and that's just because when you compare a retirees annual premium that they pay for healthcare, that cost is much smaller than what is being paid for retirees pension for the year So when you change the discount rate, it's going to have a smaller impact here for OPEB relative to pension.

And just going on to some required communications and let me load these up again because for some reason it doesn't load in the correct order but this is an important slide for us as the auditors especially when we assist management in preparing the financial statements Very often when I'm presenting, I get asked by boards or council. In your audit report you presented revenues of this amount or in your audit report you said this about cash and so forth. And really the report, the financial statements and the notes and everything accompanying it is a management document. Our document as the auditors is really just the auditor's reports and the auditor opinion So we assist management in compiling the financial statements based on their accounting records.

However, it is management's report and they take ownership of that to review the report and let us know if there are any changes needed. Our responsibility is to perform our auditing procedures Determine if the financial statements are fairly stated. That also includes evaluating internal controls, looking at laws that have material impact on the financial statements, reviewing the financial statements once they're completed and then communicating the results of the audit.

Management are responsible for the financial statements establishing those internal controls or financial reporting providing us with all the records that are needed for the audit They are also responsible for establishing controls over fraud, informing us if there were instances of fraud, complying with the laws and regulations that we consider. And then if we do have audit findings it would be the management's responsibility to address those findings. It wouldn't be our responsibility as auditors. Our responsibilities as auditors would also include independence so we follow a variety Set by the AICPA and the State Board that essentially protect our independence.

And we are permitted to assist in preparing the financial statements with some safeguards. Some of those safeguards include having management review and approve those financial statements, In addition to that, we also have an independent reviewer which was Ahmed Badawi who was not included as part of our audit team. He did an independent review of the financial statements which is some of our safeguards but we would not be authorized to be a part of management make transactions prepare and approve general entries those would be types of activities that would impair our independence.

As far as timing of the auditors were In accordance with our engagement letters that we have signed with the city, for a variety of reasons. Primarily just new ERP system turnovers and delays on issues with timing closing the books. As far as the new accounting pronouncements that were implemented in 2023 there were three pronouncements that were adopted which was Gatsby Statement 91 change some of the requirements for conduit debt.

Conduit debt or non-city, often referred to as non-city debt obligations are debts that have been issued by the city but really they are fully essentially they're fully backed by non-city revenues And the city would not be legally required to cover any shortfall of debt service. So there was some clarification on those types of debts, how to account for them and how they should be disclosed.

Also Gallery Statement 94 which addresses public-private and public-public partnerships These are where you have two governments or a government and a private entity who have an arrangement. Works very similar to a lease, but essentially kind of different. So that's what GASB essentially had this accounting pronouncement to address all that. And then also GASB Statement 96 which essentially addresses subscription-based IT arrangements. So, essentially GASB had identified that governments are entering into a lot of subscription based arrangements where you have a long term commitment to make annual payments so it operates very similarly to a debt that you have this long term commitment to pay a vendor for the use of software So, they found it necessary or probably a good idea to record a liability for those payments and then also record a corresponding asset with the right to use that software.

And then amortize it over the life of the contract for the agreement. As far as performing, the difficulties encountered as part of the audit. And difficulties obviously we had challenges as part of the audit. Difficulties here I think more are relating to disagreements or with management or inability to necessarily complete the audit. As far as significant audit adjustments and unadjusted differences, there were adjustments.

A lot of them that we proposed and recorded as part of the audit when management has recorded all those audit adjustments. And then deficiencies in internal control over financial reporting. So this year have a lot of internal control deficiencies, just as you can see that we're completing the 2023 Audit at this point. So, essentially there are two types of deficiencies that are classified here. There's items referred to as material weaknesses.

A material weakness is an internal control deficiency that is so significant or so egregious that it's very possible that the financial statements Would have material misstatements absent of an audit, meaning that if you had financial statements that were prepared. Most likely this because of this deficiency there may be a material statement in those financial statements.

And then we have another type of deficiency which is not as significant or as egregious as the material weakness but A deficiency that we find important, or it's very likely there's a good chance that there would be a material or could cause a material misstatement in the financial statements. And first just to go over each one internal control was over journal entries essentially as I mentioned earlier for the risk we had identified Regarding journal entries, it's just that there was not a lot of review on the journal entries. And also we found as part of the audit that there was not necessarily a lot of support for some of the journal entries we had tested.

So as part of the financial statements at the end of the report, they are the listing of all the findings in more detail which also have more information about the cause and condition And also the recommendation is what we gave management on how to address that finding. As far as delayed audit and annual closing procedures, this is just essentially as far as the closing process.

Essentially the city couldn't essentially be found as we started the audit that a lot of their accounts had not been closed or reconciled and also there were challenges in closing and reconciling accounts And that took a number of attempts, and so we've recommended to the city to essentially adopt closing checklists or make a list of all the different accounts that need reconciliation and implement reconciliation procedures for all the significant accounts.

As far as enterprise resource planning implementation So during 2023, the city did implement a new ERP system for financial reporting. And as we were covering the audit there were... We noticed that there was a lot of implementation errors so there weren't transactions that were supposed to have been recorded or transferred from the old system to the new system that were not transferred accurately. There was not Found also that as far as the reconciliations of account balances in the new systems were not performed, and there's more detail in the finding itself. But that was one where essentially as part of implementing a new ERP system, there should be have been a lot more planning and testing of the system before it going live And then essentially that would be the normal expectation.

Grant management, essentially just recording grants, billing grants, having a grant policy. That's something that we had identified and each of these items, a lot of these items relate to some of the audit adjustments we had made or variances we have identified Capital asset accounting, so there were challenges in completing capital asset reconciliations. Payroll master file maintenance and payroll processing. Essentially this is the segregation of duties risk that we had identified that essentially we had current at when you are performing the audit that there was one person who had access to the payroll master file who was also processing a payroll which is a segregation of duty risk Separate people updating your payroll master file and another person ideally preparing payroll or you should have some other mitigating controls in place.

Bank reconciliations, so when we started the audit there was a bank reconciliation had not been prepared and so essentially took a lot of time delayed to get the June 2023 bank rec completed. Part of it was through because of the ERP implementation, and part of it I think was also that it was just a lot of information that wasn't done essentially. Bank reconciliation should be done monthly and reconciled monthly but if you essentially are delayed and things are on the back burner so to speak Becomes a very challenging task and then adequacy of documentation for cost allocation charges. So this is a significant deficiency so part of our testing, we noted that there were some changes in the cost allocations to the enterprise funds in 2023 compared 2024.

However, when you ask for support or basis for why a certain amount of salary allocation had gone up or essentially there wasn't really any support for that. It was just more based on that person's input that they said that they spend more time on that activity and that's why they increased the The allocation but not necessarily based on time cards or time study or anything to support it, for example.

And then lastly here just have the new accounting pronouncements that will be implemented in 2024. For 2024's financial statements there'll only be one new accounting pronouncement which is just essentially addressing accounting changes and error corrections and how to address them on the In 2025, there'll be an accounting pronouncement that will update how the liability for vacation and sick leave is accounted for.

In addition which may be applicable depending on where we are but in Statement 102 addresses certain risk disclosures so this is a disclosure that would be required if for example An event occurred that one of your significant revenues, for example. You know you found out that you're no longer going to receive those revenues and it essentially would put the city in a bad position.

It's not necessarily that, you know, obviously every agency has business risks. So just it's not necessarily required if you just have a significant business risk there also needs to be some triggering event to make that risk very real that it would require disclosure. And then in 2026, a few items here. So there's Gatsby Statement 103 which updates the financial statement reporting model not very significantly. There'll be changes in your MD&A and your enterprise funds income statement will look a bit different.

And then also there'll be some additional disclosure requirements for capital assets And then in 2027, lastly there will be some clarification standard for Gatsby Statement 105 for subsequent events. Essentially this is a pronouncement that clarifies how to treat information that occurs after the end of the year. So if after the end of the year you find out that something occurred then how would you treat that? And it will depend on a number of circumstances and the standard essentially clarifies when would you need to update your financial statements to address the impact of that event or when would you disclose those impacts, and then also maybe there's no need to do anything.

That concludes my presentation again thank you for allowing us to provide auditing services to the city And I'm happy to answer any questions you may have.

2:12 – 2:1922 turns

UnidentifiedUnidentified speaker 7Proposed2:12:04

Questions from staff or from council members?

UnidentifiedUnidentified speaker 4Proposed2:12:11

I guess it's just a small question for staff. I know that there is a number that we were unable to verify, is there anything that we can do moving forward to properly document our financial records?

CommentPublic DirectorProposed · by introduction2:12:23

Yeah, that's a good question and also want to re-underscore this is 2022-2023 so then in the next audit there could be a potential for a similar comment But yes, at this point going forward the expectation is that. With the implementation of the new ERP system and with a lack of the transition from one ERP to another, we're not going to have that issue on a go-forward basis. So hopefully that answers your question.

UnidentifiedUnidentified speaker 4Proposed2:13:01

Awesome thank

CommentPublic DirectorProposed · by introduction2:13:02

you.

UnidentifiedUnidentified speaker 4Proposed2:13:04

Do we have a timeline for completing the rest of the audits?

CommentPublic DirectorProposed · by introduction2:13:10

I wish I could give you a solid timeline. I think the best I can do is to say that we're working as quickly and prudently as possible through the process. There's a lot of moving pieces. One is, you know, the auditor scheduled to address backed up audits on our part. As you know, we're working with Annette, who's extra help as well. She might not be here past next year so we're crossing our fingers that might add more delays and we're already shorthanded in finance as it stands. So we're going to do our best to get through this quickly and again prudently as possible but you know we can do what we can do here.

UnidentifiedUnidentified speaker 4Proposed2:13:55

Thank you to you and your team for all this diligent hard work.

UnidentifiedUnidentified speaker 7Proposed2:14:00

Do we have any questions of

UnidentifiedMayorProposed · by role2:14:05

Do you

UnidentifiedUnidentified speaker 7Proposed2:14:05

have any questions of us or comments, sir? I think that's to your attention. Any

UnidentifiedUnidentified speaker 10Proposed2:14:13

questions? Sorry, do I have any question?

UnidentifiedMayorProposed · by role2:14:16

No, we're asking if we had questions of you. I don't think we do so you're good to go.

UnidentifiedUnidentified speaker 10Proposed2:14:22

OK, thank

UnidentifiedMayorProposed · by role2:14:23

you very much. Thank you.

UnidentifiedUnidentified speaker 8Proposed2:14:24

All right. Thank you.

UnidentifiedMayorProposed · by role2:14:31

You know the material weakness, the notes You know, I kind of jotted them down 20-2301, 2302, 2303 and you've responded to them. They really make a lot of sense especially when we're moving from an old system to a new system are we fully under the new system yet or still pulling information from history?

CommentPublic DirectorProposed · by introduction2:14:58

No, I mean all the information was moved from in 2020 or 2023 when they implemented the new system. At this point for the rest of the audits 23-24 and on, the challenge is going to be whether or not the entries were clean.

UnidentifiedUnidentified speaker 10Proposed2:15:20

Okay.

CommentPublic DirectorProposed · by introduction2:15:21

And so there's more cleanup to happen. In working with the external consultant, there's been a lot of work done on cleaning up fund entries, journal entries, et cetera. So that kind of thing. But the information has already fully transitioned from the old ERP to Tyler.

UnidentifiedMayorProposed · by role2:15:45

You know, the thing is we don't know what we don't know. It reminds me of when you're going fishing and your fishing rod gets all tangled up. There's one...you pull one and then the other side tightens up and then after a while it starts to clean up but it takes time. And this is...and I think we know that this is priority in terms of us getting through our financial It's almost to me priority to have enough staff to be able The lack of policies. So if you know and I mentioned this to David mentioned both folks since I've been here for, you know quite a few years.

There's been like 16 city administrators about seven finance directors public about six attorneys, public directors, public service, public individual department heads, but four or five And there's a lot of turnover in the policies, especially on the financial side. We're only carrying forward what somebody messed up in the beginning. Not messed up but didn't have that, didn't have a policy and that's one of the recommendations to establish our policies and procedures regarding finances is if we don't have that in the future And we're finding that out now, like you mentioned. Although the data was transferred over, we still have to plug out and pull out the misinformation that's there so...

So it's, I think it's, we appreciate getting this out so that gives us a standard to say okay here we're here. Now we can slowly move forward with some realization that there's some facts and some consistencies to what we've seen in our budget. Any comments?

not transcribed≈18s of audible speech the AI couldn’t make out▸ listen
UnidentifiedUnidentified speaker 5Proposed2:17:52

I think some things to kind of keep in mind also Eli and his staff have been working pretty diligent on Uh, finding 3rd party products. That are cheaper than staff, but still accomplish the same tasks and things like outsourcing payroll. He's already got a line on a kiosk that will be coming in. That will be able to take payments for multiple different venues.

From fines for police, I believe. Utilities so giving a centralized location freeing up staff time that they can work on other things right? Because being short staffed isn't necessarily a bad thing right? It just allows your staff to focus on specific things and then taking things like payroll you know that could take a lot of time or you can outsource it for You know, 30% the cost of a staff member and get it done accurate with.

reliable information. So there's steps being taken to account for the lack of staff, but those things still again take time. We still can't afford to have the best so we have to find maybe the second best or what doesn't take cash but will take check or whatever the case may be. So there is steps being taken to account for different things because with a net being extra help Um.

You know, even if she did decide to come back next year, she still has to wait until her hours change, you know? So there is all these other different scenarios that have to be taken into account.

2:19 – 2:2613 turns

UnidentifiedMayorProposed · by role2:19:42

Any further questions for staff? Thank you, Eli and David and Bowdy. All right. Moving right along item 13 reduction of salaries for elected officials. Wendy. Good to see you again.

UnidentifiedUnidentified speaker 11Proposed2:20:00

Good evening, Mr Mayor and City Council members Wendy Stockton assistant city attorney prepare yourselves for a very long staff report. Okay. Acknowledging the budget situation, the City Council directed staff to prepare legal documents that would allow elected officials to have smaller salaries. The result of this action if the city council votes for it could be a savings of approximately $32,400 annually beginning in or around January 2027. The action before you tonight Recommendation of staff is that the City Council introduce by title only and waive the first reading of Ordinance Number 2026-533, reducing the monthly salaries for all the city's elected officials to $150 per month.

And continue Ordinance 2026 533 for second reading and adoption at the City Council meeting on October 27th, 2026. That concludes my staff report. Any questions?

UnidentifiedMayorProposed · by role2:21:09

Is there a recommendation? Is there a motion to approve that recommendation?

UnidentifiedUnidentified speaker 4Proposed2:21:26

I will make a motion to approve ordinance number 2026-533.

UnidentifiedMayorProposed · by role2:21:35

If we follow those recommendations introduced by title and then continue ordinance says the staff report.

UnidentifiedUnidentified speaker 4Proposed2:21:51

Thank you for being here. Okay.

not transcribed≈18s of audible speech the AI couldn’t make out▸ listen
UnidentifiedMayorProposed · by role2:22:21

All right, next item is future agenda items. Council or

UnidentifiedUnidentified speaker 3Proposed2:22:27

staff? I would like to get on officially, I don't know if it will be a council meeting but lessons learned for the Royal Theater.

UnidentifiedMayorProposed · by role2:22:38

Anybody else? Announcements, council activity reports. We'll start with Jean. Christina.

UnidentifiedUnidentified speaker 4Proposed2:22:59

Yes, earlier I don't know if we acknowledge our Nupo Navarro's comment so just want to make sure that we did acknowledge that. Also I attended this past month the Cafecito McKenzie. I attended the Harvest Festival this past Friday lots of families gathered they were really excited students were happy teachers out and about. I also attended a family barbecue at the Guadalupe Junior High School Where I lost a lot of times to checkers by students, but they had a great time. I attended the Alan Hancock College Foundation meeting and just a reminder that this Saturday Indivisible will be hosting a No King's Rally.

UnidentifiedMayorProposed · by role2:23:38

And that'll be at the plaza. Whitney? Several things. One is this Thursday, there was a hike to Point Sal with one of the Fish and Game Commissioners. There's five Fish and Game Commissioners and one of them went with us in the Point Sal management group All the way to, we actually took vehicles up drove up up the road to Point Sal, to the Point Sal point. And after that talked about, we met with the Chumash tribal representatives up there because that's going to be part of they're going to be co-managing this marine protective area and that's from basically a middle of Point Sal if you're not it's if you haven't been to Point Sal it's the middle of Point Sal two muscle muscle point muscle rock muscle shoals are now about four miles and that's going to be protected if it passes.

This coming Thursday they're actually meeting in San Francisco to go over that and We did support them with a recommendation to approve that with Chumash co-management. Food Bank was last, the 1st of October we saw quite busy 227 individuals and 53 new individuals. Tomorrow there's North County Subcommittee meeting in Solvang which is a regular monthly meeting and then Thursday SB CAG meeting you saw Marge Lester They're big celebrations, so everybody has to be there.

Which is fine. And then the Air Pollution Control District meeting is after that. Post-night, 982 had their annual, that's Veterans of America 982 had their kind of an annual meeting gathering and they had about 30, 40 veterans with the 982 plus family members. And then the police department provided us with ice cream which was very cool. And then that's all I had. Any staff, anything?

Is there a motion to adjourn, Gene?

UnidentifiedUnidentified speaker 6Proposed2:25:58

I'll motion to adjourn.

UnidentifiedMayorProposed · by role2:25:59

Is there a second? All those in favor of the motion say aye. Aye. Thank you Charlene, thank you Judy, thank you.