GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 4-3-26 Page 1 of 3 “Our purpose isto continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.” The Public is encouraged to attend and participate in person. Comments from the public on agenda items will be accepted until 4 pm on April 6th, 2026, via email to [email protected] or via the payment/document drop box at Gridley City Hall and will be conveyed to the Council for consideration.
You may view using the following link, ID, and passcode:
https://us06web.zoom.us/j/82808632139?pwd=jgCpFIHaBQyTKAiLqtx9RL1edc191h.1 CALL TO ORDER - Mayor Farr
ROLL CALL
PLEDGE OF ALLEGIANCE – Councilmember Calderon
PROCLAMATION – None
INTRODUCTION OF NEW OR PROMOTED EMPLOYEES - None
COMMUNITY PARTICIPATION FORUM - Members of the public may address the City Council on matters not listed on the agenda. The City Council may not discuss nor take action on any community participation item brought forward by a member of the community. Comments are requested to be limited to three (3) minutes.
CONSENT AGENDA
1. Council Meeting Minutes
City Council to review and approve City Council minutes Recommended Action(s):
a. Approve special City Council meeting minutes dated March 23rd, 2026
2. Electrical Surcharge Audit
Review and accept the Electrical Surcharge Audit completed by California Department of Tax and Fee Administration.
Recommended Action(s):
Gridley City Council – Regular Meeting Agenda
Monday, April 6, 2026; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 4-3-26 Page 2 of 3 a. Approve CDTFA Electrical Surcharge Audit
ITEMS FOR CONSIDERATION –
3. Planning Commission Vacancies
Council to review Planning Commission letters of interest and consider appointment to the three vacant seats
Recommended Action(s):
a. Receive and file the four (4) letters of interest submitted for the three (3) Planning Commission vacancies.
b. Consider and make appointments to fill the three vacant Planning Commission seats.
4. FY 2024-2025 Single Audit Report
Council to review and accept the FY 2024-2025 Single Audit Report Recommended Action(s):
a. Approve FY 2024-2025 Single Audit Report
5. Dia Del Nino Donation Request
Council to consider the donation request from Wilson Elementary in support of Dia Del Nino Recommended Action(s):
Receive and file this report confirming:
a. Approve Resolution 2026-R-010: a Resolution of the City of Gridley authorizing a donation in the amount of $300 in support of Dia Del Nino Celebration
6. City Hall Postage Machine
City Council to review 60-month lease agreement with Pitney Bowes for replacement of the City’s postage machine
Recommended Action(s):
a. Approve 60-month lease agreement with Pitney Bowes for replacement of the City Hall postage machine
COUNCIL COMMITTEE REPORTS - Brief reports on conferences, seminars, and meetings attended by the Mayor and City Council members, if any.
GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 4-3-26 Page 3 of 3 CITY ADMINISTRATOR REPORTS - Brief updates and reports on conferences, seminars, and meetings attended by the City Administrator, if any.
DEPARTMENT UPDATE REPORTS
• Police Department Quarterly Report, Chief Farr
POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):
Energy Efficiency Contract Review 4/20/2026
Randolph Lot Use Agreement - GUSD 4/20/2026
Steffen Estates Maintenance Assessment District Draft 4/20/2026 Expenditure Reports 4/20/2026
CLOSED SESSION –
7. Conference with Labor Negotiator Landon Little (Cal. Gov. Code Section 54957.6) – City Administrator)
8. Conference with Labor Negotiator Elisa Arteaga (Cal. Gov. Code Section 54957.6) – Electrical Director and Public Works Director
ADJOURNMENT – adjourning to a regular meeting on April 6th, 2026 NOTE 1: POSTING OF AGENDA- This agenda was posted on the public bulletin board at City Hall at or before 6:00 p.m., April 3rd, 2026. This agenda along with all attachments is available for public viewing online at www.gridley.ca.us and at the Administration Counter in City Hall, 685 Kentucky Street, Gridley, CA.
NOTE 2: REGARDING UNSCHEDULED MATTERS – In accordance with state law, it shall be the policy of this Council that no action shall be taken on any item presented during the public forum or on unscheduled matters unless the Council, by majority vote, determines that an emergency situation exists, or, unless the Council by a two-thirds vote finds that the need to take action arose subsequent to the posting of this agenda.
GRIDLEY CITY COUNCIL MINUTES: Special Meeting of 3-23-2026 Page 1 of 3
“Our purpose isto continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.”
CALL TO ORDER
Councilmember Sanchez called the meeting to order at 3:00 pm.
PLEDGE OF ALLEGIANCE
Councilmember Sanchez led the Pledge of Allegiance.
ROLL CALL
Present: Roberts, Calderon, Sanchez
Absent: Farr (recused), Johnson (recused)
Arriving after roll call: None
Staff Present: Elisa Arteaga, City Administrator
Todd Farr, Police Chief
Landon Little, Deputy City Attorney
Martin Pineda, Finance Director
Christopher Smith, Principal Planner
Dave Harden, City Engineer
COMMUNITY PARTICIPATION FORUM
The community participation forum was opened and seeing no one was present to speak, was closed.
CONSENT AGENDA – None
PUBLIC HEARING
1. Public Hearing for Discussion of City Application to the State of California CDBG Program and 8-Step Decision-Making Process per Executive Orders 11988 and 13690 Recommended Action(s):
a. Hold a public hearing to receive comments on the City’s proposed application for Community Development Block Grant (CDBG) funds, and
Gridley City Council – Special City Council Meeting Minutes Monday, March 23, 2026; 3:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL MINUTES: Special Meeting of 3-23-2026 Page 2 of 3 b. Adopt Resolution 2026-R-009: a Resolution of the City of Gridley City Council approving an application for funding and the execution of a grant agreement and any amendments thereto from the 2025 funding year of the state CDBG program; and
c. Approve the Floodplain Management 8-Step Decision Making Process per Executive Orders 11988 and 13690; and
d. Authorize City Administrator to execute necessary documents City Administrator Elisa Arteaga opened the public hearing, introduced the item, and welcomed Sherry Morgado of Housing Tools, who has been assisting the City with preparing the CDBG grant application.
Ms. Morgado provided an overview of the application process and outlined the steps the City has already taken to ensure compliance with all requirements. She also explained the required eightstep decision-making process due to the project’s location within a floodplain. She recommended that the City proceed with the public hearing to gather input and consider approval of the grant application submission. Ms. Morgado then turned the presentation over to Engineer Dave Harden to discuss the project design and construction components.
Mr. Harden provided a detailed overview of the project design and explained how grant funding would be used if awarded.
Councilmember Sanchez expressed a desire for nearby homeowners to be notified of any changes as early as possible.
Councilmember Calderon asked whether nearby streets that are currently in poor condition would be addressed as part of the project. Mr. Harden responded that those improvements are not included within the scope of this project.
ROLL CALL
Motion: Roberts
Second: Calderon
Action: Hold a public hearing to receive comments on the City’s proposed application for Community Development Block Grant (CDBG) funds, and adopt Resolution 2026-R-009: a Resolution of the City of Gridley City Council approving an application for funding and the execution of a grant agreement and any amendments thereto from the 2025 funding year of the state CDBG program; and approve the Floodplain Management 8-Step Decision Making Process per Executive Orders 11988 and 13690; and authorize City Administrator to execute necessary documents
Ayes: Roberts, Calderon, Sanchez
Noes: None
Absent: Farr, Johnson
Abstain: None
Motion passed, 3-0
GRIDLEY CITY COUNCIL MINUTES: Special Meeting of 3-23-2026 Page 3 of 3
ITEMS FOR CONSIDERATION
2. Right-of-Way Acquisition Strategy – Laurel Street Extension Project (Informational) Recommended Action(s):
a. Receive information, no action is necessary
City Engineer Dave Harden informed the Council that he has been working with the Deputy City Attorney and developer James Ratliff on the right-of-way acquisition. Mr. Ratliff has provided an Irrevocable Offer of Dedication, allowing the City to demonstrate site control for grant purposes and authorization to construct within the proposed right-of-way. The offer has been recorded with the County and will be formally accepted by the City upon award of the grant.
CLOSED SESSION - None
ADJOURNMENT
With no further items left to discuss, Councilmember Sanchez adjourned to the regular meeting on April 6th, 2026.
Approve: ___________________________
Elisa Arteaga, City Clerk
City Council Agenda Item #2
Staff Report
Date: April 6, 2026
To: Mayor and City Council
From: Martin Pineda, Finance Director
Subject: Electrical Surcharge Audit
Recommendation
Staff respectfully request that the Mayor and City Council accept the attached Electrical Surcharge Audit completed by California Department of Tax and Fee Administration (CDTFA).
Background
The California Department of Tax and Fee Administration (CDTFA) conducted an audit of the City of Gridley’s Electrical Energy Surcharge account for the period of January 1, 2023 through September 30, 2025. This represents the first audit of this account for the City.
The Electrical Energy Surcharge is collected from utility customers and remitted to the State based on electricity consumption. The audit reviewed the City’s billing data, supporting worksheets, and reporting practices to verify compliance.
The audit identified a net liability of approximately $7,329, which includes adjustments for underreported surcharge amounts, interest, and applicable penalties. This amount reflects both underpayments and credits identified during the audit period.
The audit findings indicate that the identified issues were primarily clerical and procedural in nature, rather than intentional noncompliance. The City demonstrated a good faith effort to comply with reporting requirements and maintained adequate documentation throughout the audit period.
Fiscal Impact
The audit results in a net payment obligation of approximately $7,329 from the Electrical Utility Fund.
This amount includes audit adjustments, interest, and penalties, offset by applicable credits.
Attachments:
CDTFA Final Audit Results
x Regular
Special
Closed
Emergency
STATE OF CALIFORNIA
Final Audit Results
Dear CITY OF GRIDLEY:
Surcharge Measure Disclosed by Examination
$8,727.00
-1,398 ($1,398.00)
29,086,734 $7,329.00
Note: Due to rounding differences, totals on this page may display differently on this page than the front page.
Explanation of Findings
Start date of the Electrical Energy Surcharge account is January 1, 1975.
No prior audits. No status with the California Secretary of State.
Letter Date:
Letter ID:
Account Type:
Account Number:
Audit ID:
Audit Period From:
Audit Period To:
We have completed our review of your account for the period(s) referenced above. Based on our examination, we have submitted our findings for issuance of a formal notice for the following amounts.
Type of Business
Organization
CDTFA-5184 (5-23)
qL0030-8
CITY OF GRIDLEY
685 KENTUCKY ST
GRIDLEY CA 95948-2117
Local government entity. Elisa Arteaga, City Administrator. Martin Pineda, Finance Director.
10A Understated / Overstated Electrical
Energy Sold to Consumers per Review of
Billing Data Summarized by Class (kWh)
10B Reconciliation of Excess Surcharge
Found per Examination of Billing Records to
Excess Surcharge Reported
10-23 to 3Q-25
Total
TRISTA GONZALEZ
Director
GAVIN NEWSOM
Governor
Surcharge
’ Credits
Less Adjustments
Payments
Interest through March 6, 2026
Penalty(ies)
Total**
March 6, 2026
L0034917581
Electrical Energy
031-000013
A182144
January 1, 2023
September 30, 2025
NICOLAS MADUROS
Secretary, Government Operations Agency
Examination Period: January 1, 2023 to September 30, 2025 $7,555.00
$ (226.00)
$0.00
$ (8,424.32)
$773.32
$322.00
$0.00
**lf multiple billings have occurred, the audit liability may not equal the sum of the billings.
Surcharge Measure Surcharge Difference
29,088,132
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
PO BOX 942879, SACRAMENTO, CA 94279-0001 MIC: 48
1-916-798-9515 • FAX 1-916-324-0677
www.cdtfa.ca.gov
Letter ID: L0034917581 Letter Date: March 6, 2026 Page 2 Type of Transactions
Books and Records
Reporting Method
The taxpayer did not report based on surcharge collected.
Verification and Findings
CDTFA-5184 (5-23)
qL0030-8
* The following books and records were provided for the entire audit period unless otherwise noted.
City of Gridley is one of California’s oldest municipal power agencies and provides electrical energy for the residents and businesses of Gridley. There are some sales of electrical energy to exempt customers such as the United States Post Office and insurance companies. Some customers have solar panels but the energy generated is minimal.
The Electrical Energy Surcharge is reported based on kilowatt-hours noted in various reports. Source records used include billings from NCPA (Northern California Power Alliance) for electrical energy purchased, Electrical Sales & Delivery Quarterly Reports (sent to the Energy Commission), and billings to exempt customers.
Examination of Billing Data
Detailed billing data was requested and the representative was able to provide a report titled "My Billed Consumption Report Summary." The report contains summaries by service class but does not contain individual billings. More detailed billing data would be helpful in identifying exempt customers but that information is already available in the supporting worksheets and will be used because it is readily available.
There are two main service categories noted in the billing data: E - Electric and D - Electric w/ Demand. Electric with demand has a different rate for electricity during peak demand hours of the day. The information was provided in monthly reports and the information is summarized on Schedule 10A-1.
Exempt sales of electrical energy were noted in the supporting worksheets, summarized by billing account. The information is readily available and adequate for what we are trying to accomplish in the audit. Copies of billing invoices were requested, provided, and reviewed to verify that the transactions are valid exemptions. Details are available on Schedule 10A-2.
Computerized, double entry accounting system supported by documents of original entry.
Books and records are adequate for Electrical Energy Surcharge reporting purposes.
The city uses Tyler Technologies ERR Pro 10 software for their operations.
Supporting worksheets used to file returns, monthly billing data by service class (My Billed Consumption Report Summary), copies of billing invoices as requested.
Electrical Energy Surcharge is accrued in general ledger 600-0000-46644 Surcharge.
The surcharge is separately stated on the billing invoices.
Reconciliation of Supporting Worksheets to Reported Amounts A reconciliation of kilowatt-hours noted in the supporting worksheets to reported amounts resulted in material differences. We are unsure why there are such significant differences because the previous preparer of the return is no longer with the organization. We suspect it is a combination of clerical errors and incorrect data in the reports used to file.
Further examination warranted. Additional details are available on MEMO-2 Recon.
Letter ID: L0034917581 Letter Date: March 6, 2026 Page 3 Additional details are available on Schedule 10B.
Claim For Refund
CDTFA-5184 (5-23) •J
qL0030-8
Total electrical energy billed less electrical energy billed to exempt customers equals the electrical energy subject to surcharge. The electrical energy subject to surcharge per examination of the records is reconciled to the reported electrical energy subject to surcharge with material differences noted. The differences are due to report errors, clerical errors, and one unfiled return due to uncertainty. Details are available on Schedule 10A.
Surcharge Collected But Not Reported
The surcharge billed to customers was found in the monthly My Billed Consumption Reports. A reconciliation of the surcharge billed to the surcharge expected per kilowatt-hours subject to the surcharge resulted in a net credit. This means that more surcharge is due than what was billed to customers, on average, for the audit period.
However, there are two periods where more surcharge was billed than what was expected. r '
When discussed with the Business Services Supervisor, we suspect it may be related to solar generation by customers. Energy generated by the customer via solar panels and sent back to the grid would effectively make a "net meter" run backwards (reduction in kilowatt-hours metered). The reports used in the audit display the net kilowatt-hours but the surcharge is due on the gross kilowatt-hours consumed by the customer from the utility. We expect the amount of solar generation to be minimal. We also suspect that the surcharge is computed correctly by the billing system because we cannot think of another reason why more surcharge is billed than expected.
The surcharge is paid by the consumer and collected by the utility so the utility is not able to keep the surcharge balance. The surcharge must be returned to the customer if collected in excess or remitted to the state. The taxpayer was reminded that the surcharge is due on the gross kilowatt-hours consumed by customers from the utility.
Details are available on Schedule 10B-1.
Further, the same information was used for lines 1 through 9 in both the supporting worksheets and the Electrical Energy Surcharge return. However, line 10 was computed ’ differently in the supporting worksheets which resulted tn higher surcharge due. In order to report all the surcharge they felt that they owed, the preparer reported the difference on line 15 Excess Surcharge Collected.
The excess surcharge found in the audit is reconciled to the reported excess surcharge resulting in a net credit. The credit is due to the large amount of excess surcharge reported in 4Q-24. However, excess surcharge was not found in a review of source records. The excess surcharge was reported because the preparer computed more surcharge due in their own worksheets than what the return computed using the same source amounts (computation errors).
Auditor requested that the taxpayer file a claim for refund to protect the credits found in 1Q-25 and 4Q-24.
Electrical Energy Surcharge was over reported in 1Q-25 because incorrect information was used to file. The supporting worksheets show that 2Q-25 information was used to file 1Q-25 which is odd considering the chronology of events. Both 1Q-25 and 2Q-25 returns were filed late and contained the exact same information. 1Q-25 was the last return filed by the previous preparer who was also the Assistant Finance Director. She is no longer with the organization. The only reasonable conclusion is that she made a mistake and referred to the wrong tab of information when filing the IQ-25 return.
Letter ID: L0034917581 Letter Date: March 6, 2026 Page 4 Penalty
Supervisor’s Position Supervisor concurs with the auditor's methodology and findings.
Credit Interest
CDTFA-5184 (5-23)
qL0030-8
Credit interest is recommended. The over reporting is due to the information used to file the returns. The preparer make a clerical error and used information from the wrong periods to file.
They asked if the form was required and auditor responded that it is not required but would protect the credits if anything unusual were to happen with the audit. They would like to opt out of filing the claim for refund form.
Taxpayer Claimed Amount 1Q-25: N/A
Audited Amount 1Q-25: $226.00
Auditor is also recommending a credit for the excess surcharge reported in 4Q-24 but is more of a reversal of incorrect surcharge reported. The preparer incorrectly used megawatt-hours instead of kilowatt-hours in one of the computations which resulted in a very large amount for line 7 energy lost in transmission. This large deduction resulted in a low amount of kilowatt-hours subject to the surcharge. However, the preparer computed a higher amount in her own worksheets because she used megawatt-hours again in another calculation which helped offset the first use of megawatt-hours. As a result, she reported the difference as excess surcharge but the amount reported is not truly excess surcharge. The audit approach corrects the errors mentioned so a reversal of the incorrectly reported excess surcharge is warranted.
A 10% negligence penalty is not recommended on this first audit of the Electrical Energy Surcharge account. The errors are due to report errors and clerical errors which are the most common errors found in the program. The supporting worksheets were available for the audit period and show a good faith effort to report correctly. Records are in good order and were provided timely for review. No negligence note.
Chris Miller
Administrator
A 10% failure to file penalty is required for 3Q-25 due to returns not filed. The return was not filed because the new preparer was trying to improve the reporting process and was learning. The failure to file penalty is statutory.
We would appreciate you taking a few minutes to complete the Audit Survey to help us evaluate the effectiveness of our audit program. The survey can be accessed online by visiting our website at www.cdtfa.ca.gov, and clicking Login, which takes you to our Online Services webpage. Do not log in; scroll down to the bottom of the page and select the Fill Out an Audit Survey located under the Limited Access Functions column. You will need your audit ID to complete the survey.
If you have any questions relating to this letter, you may contact me at 1-916-309-0362.
City Council Agenda Item #3
Staff Report
Date: April 6, 2026
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: Planning Commission Vacancies – Term Expiration: December 31, 2029 Recommendation
City staff recommends that the City Council:
1. Receive and file the four (4) letters of interest submitted for the three (3) Planning Commission vacancies.
2. Consider and make appointments to fill the three vacant Planning Commission seats.
Background
The Planning Commission is a citizen advisory body of five members that plays a central role in guiding the City’s growth, development, and preservation of community character. The Commission operates under the authority granted by State law and the Gridley Municipal Code and serves as an important quasi-judicial body in local government decision-making.
The City of Gridley currently has three vacancies on the Planning Commission. Each position carries a four-year term, expiring December 31, 2029.
The City received four (4) letters of interest from individuals interested in serving on the Planning Commission. The City Council will review the submitted applications and may proceed with appointments to fill the three vacant seats.
Financial Impact
There is no additional financial impact associated with appointing three Planning Commissioners, as compensation for meeting attendance is already included in the approved budget.
Attachments
4 Letters of Interest
Current Planning Commission Member Selection and Terms City Ordinance X Regular
Special
Closed
Emergency
2.12.030 Members--selection.
The five members are to be selected by the city council. At least four members shall be registered voters of the city. One member may be chosen from the registered voters who reside within a distance of one-half mile from city limits as measured from the nearest point of city limits to the nearest edge of the property of said resident being considered. (Ord. 805-2012 § 1, 2012: Ord. 454 § 2, 1984: Ord. 396 § 1, 1982: Ord. 308 § 3(part), 1977).
2.12.040 Members--terms.
The terms of the planning commissioner shall be four years, with two terms commencing as of the first day of January of each even numbered year not divisible by four and three terms commencing as of the first day of January of each evennumbered year divisible by four. The terms of the planning commissioners serving as of the effective date of the ordinance codified in this section shall be continued until their natural expiration, at which time appointments will be made for the term prescribed by this section. Any vacancy in the office of the planning commissioner caused by any reason whatsoever, shall be filled by an appointment by the council, such appointments to coincide with the terms of office specified by this section. (Ord. 454 § 3, 1984: Ord. 308 § 4, 1977).
City Council Agenda Item #4
Staff Report
Date: April 6, 2026
To: Mayor and City Council
From: Martin Pineda, Finance Director
Subject: Accept the FY 2024-2025 Single Audit Report
Recommendation
Staff respectfully request that the Mayor and City Council accept FY 2024-2025 Single Audit Report.
Background
The Finance Department has received the Single Audit Report for FY 2024–2025 and is pleased to share excellent results. For the first time in many years, there are no new findings, questions, or material weaknesses identified.
In addition, four longstanding findings had been reported in prior audits. The Finance Department has successfully addressed and cleared three of these findings. The remaining finding (referenced on pages 10–11 of the report) has an established corrective action plan in place; however, due to timing differences, it will carry forward into the next audit cycle.
The purpose of the Single Audit Report is to ensure that federal funds are used appropriately, evaluate internal controls and compliance, and promote transparency in federal program spending. This report is required for local governments that expend $750,000 or more in federal funds within a single fiscal year.
Special recognition is extended to the Finance Department team for this achievement, with particular acknowledgment of Miguel Chavez, Business Services Supervisor, and Jacob Tanabe, Accountant. Their dedication, diligence, and commitment to excellence have been invaluable to the City.
Fiscal Impact
No fiscal impact to accept and file
Attachments:
2024-25 City of Gridley Single Audit Report_C&ALLP_FINAL x Regular
Special
Closed
Emergency
Chavan & Associates, LLP
Certified Public Accountants
16450 Monterey Road, Ste. 5
Morgan Hill, CA 95037
CITY OF GRIDLEY, CALIFORNIA
SINGLE AUDIT REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
CITY OF GRIDLEY, CALIFORNIA
SINGLE AUDIT REPORT
TABLE OF CONTENTS
JUNE 30, 2025
PAGE NO.
Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance in Accordance with Uniform Guidance ............................................................................................................ 1 Schedule of Expenditures of Federal Awards........................................................................ 4 Notes to Schedule of Expenditures of Federal Awards......................................................... 5 Schedule of Findings and Questioned Costs:
Section I - Summary of Auditor’s Results....................................................................... 6 Section II - Financial Statement Findings........................................................................ 7 Section III - Federal Awards Findings and Questioned Costs........................................ 7 Summary Schedule of Prior Year Findings........................................................................... 8 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.................................. 13 Page | 1 16450 Monterey Road, Ste. 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH
MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE
To the Honorable Mayor and Members of the
City Council of the City of Gridley
Gridley, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Gridley’s (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the fiscal year ended June 30, 2025. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the fiscal year ended June 30, 2025.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City ’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs.
Page | 2 16450 Monterey Road, Ste. 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Page | 3 16450 Monterey Road, Ste. 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of City as of and for the fiscal year ended June 30, 2025, and have issued our report thereon dated February 23, 2026, which contained an unmodified opinion on those financial statements. Our audit was performed for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the financial statements as a whole.
February 23, 2026
Morgan Hill, California
CITY OF GRIDLEY, CALIFORNIA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
The accompanying notes are an integral part of this financial statement. 4 Pass-through
Assistance Identifying Federal
Federal Grantor/Pass-Through Grantor/Program Title Listing Number Expenditures U.S. DEPARTMENT OF THE TREASURY
Passed-Through California Department of Finance:
Coronavirus State and Local Fiscal Recovery Funds 21.027 OIG-CA-20-028 $ 1,200,000 Total U.S. Department of the Treasury 1,200,000
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Passed-Through California Department of Housing and Community Development:
Community Development Block Grant Program 14.228 Beginning Loan Balance 1,560,209 Community Development Block Grant Program 14.228 N/A 792,128 Community Development Block Grant Program 14.228 21-DRMHP-21010 2,970 Community Development Block Grant Program 14.228 N/A 5,133 Total Community Development Block Grant Program 2,360,440 HOME Investment Partnership Program 14.239 (1) Beginning Loan Balance 3,298,170 HOME Investment Partnership Program 14.239 (1) N/A 5,546,250 Total U.S. Department of Housing and Urban Development 8,844,420 U.S. ENVIRONMENTAL PROTECTION AGENCY
Passed-Through State Water Resources Control Board:
Capitalization Grants for Clean Water State Revolving Funds 66.458 D190102400 26,037 Total U.S. Environmental Protection Agency 26,037
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 12,430,897
(1) Audited as major program
Notes:
a) The City has elected not to use the 10 percent de minimus indirect cost rate allowed under Uniform Guidance . b) There are no federal grants passed through to subrecipients.
CITY OF GRIDLEY, CALIFORNIA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
5 Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of the City of Gridley (the City) under programs of the federal government for the fiscal year ended June 30, 2025. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.
Note 2. Summary of Significant Accounting Policies
Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The City has elected not to use the 10 percent deminimus indirect cost rate as allowed under Uniform Guidance.
Note 3. Relationship to the Basic Financial Statements
The amounts reported in the accompanying schedule agree, in all material respects, to amounts reported within the City’s financial statements. Federal award revenues are reported principally in the City’s financial statements as intergovernmental revenues.
Note 4. Relationship to Federal Financial Reports
Amounts reported in the accompanying schedule agree or can be reconciled with the amounts reported or to be reported in the federal financial reports.
Note 5. Pass-Through Entities' Identifying Number
When federal awards are received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City has determined that no identifying number is assigned for the program, or the City was unable to obtain an identifying number from the pass-through entity.
CITY OF GRIDLEY, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
6 Section I - Summary of Auditor’s Results
Section I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issued
Internal control over financial reporting:
Material weaknesses? Yes x No
Significant deficiencies identified not
considered to be material weaknesses? Yes x None Reported Non-compliance material to financial statements noted? Yes x No Federal Awards
Internal control over major programs:
Material weaknesses? Yes x No
Significant deficiencies identified not
considered to be material weaknesses? Yes x None Reported Type of auditor's report issued on compliance over major programs Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a) Yes x No
Identification of Major Programs:
CFDA Numbers Name of Federal Program
HOME Investment Partnership Program
Dollar threshold used to distinguish between
type A and type B programs:
Auditee qualified as low risk auditee? Yes x No
Unmodified
Unmodified
14.239
$ 750,000
CITY OF GRIDLEY, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
7 Section II - Financial Statement Findings
No findings noted.
Section III - Federal Award Findings and Questioned Costs No findings noted.
CITY OF GRIDLEY, CALIFORNIA
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
8 Section II - Financial Statement Findings
Finding 2024-001 - Financial Close (Material Weakness - Repeat Finding) Criteria
An effective internal control system and timely financial reporting provides reasonable assurance for the safeguarding of assets, the reliability of financial information, and compliance with laws and regulations.
Condition
During the audit, we proposed material audits adjustments to the City’s general ledger which were agreed to and posted by management. In addition, management provided material adjustments subsequent to providing the trial balance. Inherently, material audit adjustments are indicative of ineffective financial reporting and closing. The timeliness of the adjustments is also indicative of an ineffective closing process.
Cause
Management was in the process of implementing financial and reporting and closing recommendations from previous audits during the close of this fiscal year. As such, there were still improvements that had not been implemented to ensure accounting records were closed timely and accurately.
Effect
The financial statements as presented to the auditors contained material misstatements that required adjustments.
Recommendation
We recommend the City continue to implement written closing procedures and establish a routine timeline for closing. Documenting the closing process involves identifying and gaining an understanding of: 1) the events or transactions included in the procedures that need to be performed, 2) the automated or manual procedures used in performing the process, 3) the person(s) or positions(s) responsible for performing the procedures, 4) the source documents used or generated during the closing process, 5) the procedures for required approval, review, and correction of any errors detected, and 6) the financial or operational entries or reports summarizing the result of the process.
We further recommend the City develop checklists or other guidance documents over the City's closing process to ensure all closing entries are captured in the City's general ledger in a timely manner, and supporting schedules agree and reconcile to respective account balances prior to the trial balance being provided for the audit.
Corrective Action Plan
Management has been diligently working toward the implementation of the auditor’s recommendations and has made significant progress. Management will continue to establish and update internal processes, including financial reporting and closing, and provide training to key staff.
Status
Implemented
CITY OF GRIDLEY, CALIFORNIA
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
9 Finding 2024-002 - Negative Cash Balances (Material Weakness - Repeat Finding) Criteria
An effective internal control system and timely financial reporting provides reasonable assurance over the safeguarding of assets and the reliability of the classification financial information.
Condition
During our audit procedures to test cash and pooled cash balances, we identified the following:
• We noted 6 funds as of year-end which contained negative pooled cash balances. This was a decrease from 37 funds that had negative balances in the prior fiscal year.
Cause
The negative cash balances in each fund were not cleared during the annual close via interfund payables and receivables.
Effect
The financial statements as presented to the auditors contained material misstatements that required adjustments between the funds.
Recommendation
We recommend that management establish written procedures that establish when, why and how to review all funds for negative cash balances and what the corrective action should be to clear negative cash balances in a fund. The written procedures should also include a systematic and routine reconciliation of pooled cash to each fund once the negative cash is cleared.
Management should also ensure that interfund payables and receivables do not exceed one year from the fiscal year end by including written procedures related to the timing of interfund balances and when and how to clear those balances. If an interfund payables and receivables extend beyond one year, the balance should be converted to a formal loan agreement between the funds and recorded as an Advance.
Corrective Action Plan
The City has already taken corrective action by consolidating funds based on the nature of the fund and the restriction of the revenue stream. Management has also updated the City’s year end closing process to required that all negative cash balances are reclassified to interfund payables and receivables.
Status
Implemented
CITY OF GRIDLEY, CALIFORNIA
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
10 Finding 2024-003 - Negative Fund Balances (Significant Deficiency - Repeat Finding) Criteria
GASB 54: Fund Balance Reporting and Governmental Fund Type Definitions, defines special revenue funds as funds used to report proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes, other than capital projects or debt service. In addition, per paragraph 31, a government should discontinue reporting a special revenue fund, and instead report the fund's remaining resources in the general fund, if the government no longer expects that a substantial portion of the inflows will derive from restricted or committed revenue sources.
Condition
During our audit, we noted that the City's general ledger contains multiple funds classified as special revenue funds which either have had no activity for multiple years, have negative cash balances, have a negative fund balance, or a combination of these three issues.
Cause
The City was in the process of assessing the requirements of GASB 54 as they apply to special revenue funds and the City for this fiscal year.
Effect
The following funds ended the fiscal year with deficit fund balances:
Recommendation
We recommend that management create written procedures that require the review of all funds for deficit fund balance during the budget process and corrective action be identified as a part of the budget process.
The written procedures should include criteria regarding whether or not a fund still meets the definition of a separate fund type as listed in GASB 54 as compared to the fund’s current classification. If there are special revenue funds with negative cash balances which should remain open, we recommend that management determine if the revenue source for which the fund was opened still exists, or if the General Fund is financing the activity of the fund. If the City no longer expects that a substantial portion of the Deficit Deficit
Fund Net
Balance Position
SB 325 TDA Fund 535,349$ -$
Traffic Safety Fund 44,151 -
Planning and Development Fund 692 -
Gas Tax Fund 1,033,549 -
2021 Vierra Park Improvements Fund 51,216 -
Home Fund 10,215 -
Gridley Sports Complex Fund 70,065 -
Senior Taxi Fund - 213,273
Totals 1,745,237$ 213,273$
CITY OF GRIDLEY, CALIFORNIA
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
11 inflows will derive from restricted or committed resources, the fund should be closed, and the remaining resources should be reported in the General Fund.
Corrective Action Plan
The City has made significant progress toward consolidating funds based on the nature of the fund and the restriction on the revenue stream which will be reflected in fiscal year 2024-25. For those that cannot be consolidated, the City will seek direction from the City Council.
Status
Implemented. Although certain funds did carry a deficit fund balance, those were due to timing differences that impact revenue recognition. Management is corrected the conditions that led to this finding.
Section III - Federal Award Findings and Questioned Costs Finding 2024-004 - Financial Reporting Timeliness (Significant Deficiency - Repeat Finding) Criteria
In accordance with CFR section 200.512 of the Uniform Guidance, the audit must be completed and the data collection form and reporting package must be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report(s) or nine months after the end of the audit period.
Condition
The 2024 Single Audit reporting package and data collection form have not been submitted to the Federal Audit Clearinghouse by the deadline of March 31, 2025.
Cause
Management has continued to make significant progress toward the implementation of audit recommendations from prior audits. However, the timing of performing audits for multiple fiscal years has been a tedious and difficult process, leading to delays in the fiscal year 2024 audit. Management expects the fiscal year 2025 to be submitted timely.
Effect
The City will automatically be considered high risk which means that at least 40% of its expenditures of federal awards will be required to be tested instead of 20%. Based on the composition of the City’s schedule of expenditures of federal awards, we do not anticipate there will be a significant impact.
Recommendation
We recommend that the City continue to implement processes and procedures that will support a financial close by the end of October or November. The procedures should include specific timelines by phase and instructions for communicating with departments and what the department cut-offs will be.
CITY OF GRIDLEY, CALIFORNIA
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
12 Corrective Action Plan
Management has been diligently working toward the implementation of the auditor’s recommendations and has made significant progress. Management will continue to establish and update internal processes, including financial reporting and closing, and provide training to key staff.
Status
Implemented
Page | 13 16450 Monterey Road, Ste. 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the
City Council of the City of Gridley
Gridley, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the City of Gridley (the “City”) as of and for the fiscal year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated February 23, 2026.
Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and Page | 14 16450 Monterey Road, Ste. 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
February 23, 2026
Morgan Hill, California
City Council Agenda Item #5
Staff Report
Date: April 6, 2026
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: Wilson Elementary Donation Request – Día del Niño Celebration Recommendation
Staff recommends that the City Council approve a donation in the amount of $300 in support of the Día del Niño Celebration scheduled for April 30, 2026. The funds will be used to purchase a bicycle to be given away as a prize during the event.
Background
The City has received a request for financial assistance to support the upcoming Día del Niño (Children’s Day) Celebration. This event is intended to honor and celebrate children in the community by providing a day filled with recreational activities, educational opportunities, and family-friendly experiences.
The event organizers are seeking community sponsorships and donations to help fund eventrelated costs, including supplies, activities, food, beverages, and small giveaways for participating children.
Financial Impact
Approval of the recommended action will result in a $300 expenditure from the City’s existing budgeted donation funds.
Attachments
Donation Request Letter
Resolution 2026-R-010
X Regular
Special
Closed
Emergency
ATTACHMENT 1
RESOLUTION NO. 2023-R-010
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRIDEY SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $300 TO GUSD FOR THE DIA DEL NINO CELEBRATION WHEREAS, the City of Gridley has received a request for financial assistance to support the Día del Niño Celebration scheduled for April 30, 2026; and WHEREAS, the event is intended to provide a community celebration honoring children through recreational and family-friendly activities; and WHEREAS, the organizers have requested community support to assist with event costs, including the purchase of a bicycle to be used as a prize; and WHEREAS, the City Council finds that supporting this event benefits the community by promoting youth engagement and family participation.
NOW, THEREFORE, BE IT RESOLVED:
Gridley City Council approves the Supplemental Appropriation in the amount of $300 from the General Fund account 010-4010-55000 in support of the Dia Del Nino Celebration.
I HEREBY CERTIFY that the foregoing resolution was introduced, passed, and adopted by the City Council of the City of Gridley at a regular meeting held on the 6th day of April, 2026 by the following vote:
AYES: AGENCY MEMBERS
NOES: AGENCY MEMBERS
ABSTAIN: AGENCY MEMBERS
ABSENT: AGENCY MEMBERS
ATTEST: APPROVE:
____________________________ ________________________________ Elisa Arteaga, City Clerk Michael W. Farr, Mayor
City Council Agenda Item #6
Staff Report
Date: April 6, 2026
To: Mayor and City Council
From: Tyson Pardee, IT Manager
Subject: City Hall Postage Machine - Pitney Bowes Lease Agreement Recommendation
City staff respectfully recommend the City Council approve the 60-month lease agreement with Pitney Bowes for replacement of the City’s postage machine.
Background
This City utilizes the postage machine to send out utility bills, important notices, and miscellaneous letters to its residents. The postage machine is key equipment for City Staff to conduct business.
The City’s primary postage machine has been in use for the past five years and has reached the end of its lease term. Staff recommend entering into a new lease agreement that includes a new postage machine. An informal bid process was conducted, and staff recommend selecting Pitney Bowes. While Pitney Bowes did not submit the lowest bid their bid does include all parts and labor. The lowest bid by Quadient’s includes labor but does not include some items, like rollers, which will wear out over time.
The proposed lease agreement spans 60 months and includes a monthly fee that covers the lease cost, parts, and labor for any necessary maintenance.
Financial Impact
The annual cost is $2,015.28. The current amount the city pays is $1,913.52. Approval of this new lease agreement will increase the annual cost by $101.76.
Attachments
01_Informal Bid Info
02_Pitney Bowes
X Regular
Special
Closed
Emergency
Company Monthly
Quadient $145.31
Pitney Bowes $167.94
FP $240.00
Data Pack $362.76
Quarterly Council Report
City of Gridley
Todd W. Farr
Chief of Police
Arrest and Incident Summary Activity for January to March 2026:
Quarterly Year Total
Adult Arrests
Juvenile Arrests
Misdemeanor Arrests
Felony Arrests
Felony Crimes Reported
Misdemeanor Crimes
Total Incidents
Battery
Burglary
Deceased Person
Vandalism
Stolen Vehicle
Robbery
Public Intoxication
Medical Aid
Area Checks
Pedestrian Checks
Disturbing the Peace
Animal Calls
Total 911 Calls
Total Accidents
Total Traffic Citations
DUI Arrest
Traffic Stops
86 86
9 9
71 71
24 24
46 46
100 100
3,577 3,577
7 7
5 5
5 5
21 21
2 2
0 0
9 9
25 25
1,064 1,064
85 85
75 75
283 283
529 529
20 20
223 223
13 13
459 459
Response times for this month are as follows:
Priority 1- Events that involve injury and are life threatening or in progress.
Priority 2- Events that involve property loss or damage.
Priority 3-Events that do not involve injury, threat of life, property loss or damage.
Priority Times:
Priority 1: 3:11 MIN
Priority 2: 3:23 MIN
Priority 3: 3:20 MIN
Overall average response times to all calls for service:
3:37 Min.