MINUTES
City of Guadalupe
Regular Meeting of the Guadalupe City Council
Tuesday, February 8, 2022, at 6:00 pm
City Hall, 918 Obispo Street, Council Chambers
ROLL CALL:
Council Member Liliana Cardenas
Council Member Gilbert Robles
Council Member Eugene Costa Jr.
Mayor Pro Tempore Tony Ramirez
Mayor Ariston Julian
The meeting was called to order at 6:00 p.m. All were present. (The abbreviation "CM" is being used for "Council Member" in these minutes.)
MOMENT OF SILENCE
Mayor Julian mentioned that Michael Armenta, a long-time Guadalupe resident, recently passed away. He offered condolences to Mr. Armenta's family.
PLEDGE OF ALLEGIANCE
4. AGENDA REVIEW
At this time the City Council will review the order of business to be conducted and receive requests for, or make announcements regarding, any change(s) in the order of business.
There were no requests to change the agenda.
5. COMMUNITY PARTICIPATION FORUM
Each person will be limited to a discussion of three (3) minutes or as directed by the Mayor.
Pursuant to provisions of the Brown Act, 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 a future City Council meeting.
Deek Segovia: Mr. Segovia was representing the Vietnam Veterans of America, Chapter 982 (to be referred to as "VVA"). He said, "I brought the Board of Directors and officers here tonight to talk about the Veterans' Memorial Building." Mr. Segovia then gave some history on the building as it related to his organization. In 2006, the VVA was established. Since that time, the VA has relocated February 8, 2022 City of Guadalupe Council Meeting Minutes Page 1 of 16 four (4) times to be able to hold meetings, including back in the building in November last year. Since 2012, they left the Veterans Building due to certain circumstances. We couldn't survive there. We weren't welcome there and are still not fully housed there. Mr. Segovia said, "As veterans, we're different than the general public renting the building. That building was dedicated to veterans, not a veteran's organization as it is right now. Tonight, we all brought our DD214s, as proof of service in the military. It's kinda silly but we brought them because we're veterans." He continued saying, "The City and the community has always supported us, been there for us, done thing with us and we with the City. We want to continue that. But with what's going on with the building now...we paid in advance for one (1) year. Because of the situation the City's in now, we wanted to lock in the dates now. We weren't asked to pay...we wanted to pay. We wanted to guarantee our Saturdays for our meetings because our meetings were disrupted before. We didn't want to put up with that. We need other things beside a meeting place. We need a break-out room for our board meetings. Now in the Veterans Hall, there's a locked room there which would be great for our board meetings and elections. That's a little bit of the differences between us and the general public. Also, we have other needs that the City may or may not be able to provide but we don't seem to have a voice in what's going on. We've never been asked what we need. We still have stuff at the Senior Center. Even our sign is still up there. We dare not take it down until we know for sure we have a place. We're just urging the City to take ownership of your building. Meet with us, the organizations that are going to use it and not the general public and see what our needs are. See if the City can provide for us. We're all veterans...American Legion, Vietnam Veterans, etc. We don't want to be above anyone, but we don't want to be below anyone either. As veteran organizations, we should be equals, but we have no voice. And we want a voice because we want to make the Veterans Memorial Building our home. Thank you."
Mayor Julian then said, , "For over two (2) years, we've been moving to transition that building. It's like pushing a big rock over a hill, but it's going downhill now in a positive way to make this happen.
In the Mayor's Report, on item #9, Post 371/Legion, there's information on just this topic. The American Legion has counsel, and the City is negotiating with them. We're moving as hard as we can, but it's a moving target. When I heard that second room was locked, which is the room with all the memorabilia, and I guess the lock was changed...! don't know...that's for another day. We're moving as fast as we can with that." The mayor then emphasized, "Your organization and another Vietnam organization submitted a letter requesting the memorial that's on private property next to the Veterans Memorial Parking Lot be relocated to the Legion. What I wanted to point out is that request came from two (2) Vietnam organizations that wanted access to that building. So, that pointed to me and others that there's a consensus that that building belongs to veterans. And / appreciate your steadfast support for us in moving forward on this because it needs to go forward." Mr. Segovia added, "I would think that some of the hold back for you and the City have probably been mentions of military codes saying who can use the building, etc. Those same military codes are used to violate our freedoms in that building. Those codes are used against us so we couldn't meet there. There are a lot of issues going on. We're all equals. We're veterans. We aren't going to go in there and damage and steal and that kind of stuff. If we can't be trusted by veterans, that tells me something. Why? Why can't we be trusted by other veterans. I don't believe it's other veterans.
I believe it's one veteran. And that complicates things because it makes the American Legion look bad. I belong to the Veterans of Foreign Wars, the American Legion, Vietnam Veterans of America.
February 8, 2022 City of Guadalupe Council Meeting Minutes Page 2 of 16 Some of our members are that and, also DAVs. We belong to multiple organizations of veterans.
Yet we can't be part of this organization that's here in town. And I don't know why.
The mayor then addressed those individuals in the audience. He said, "Please stand up, all the local veterans with the group here. (Deek Segovia also asked Mike Roberts to stand with the group as he is also a veteran.) We all appreciate your service and we're moving on this. Thank you.".
CM Ramirez recommended, "This item should be discussed with the Recreation & Parks Commission, too, and have this item put on their agenda for discussion of facilities at that level and have those recommendations as it seems to be a facility issue. Hannah (Fuentes) sits in that group and there could actually be some movement on it. It would also allow others who may attend the meeting know about the issue."
Michael Roberts: "I'm a member of Narcotics Anonymous. I appreciate all that the City has done to accommodate our meetings. I'm here to ask for community involvement. Our group meets every Wednesday, except the last Wednesday of each month, at the Senior Center here in Guadalupe. In 2019 | moved here from Grover Beach and saw a need for Narcotics Anonymous group meetings. / did the footwork to make it happen. I was told that when / moved from Los Angeles to the Central Coast that there was a drug problem here in Guadalupe. I know I'm not surprising anyone. / was told that there is a need here, hang in there, and keep the door open. People will find us. I appreciate your time. I have some flyers I'd like to leave here in the back with information about our meetings." The mayor asked what the hours were for these meetings. Mr. Roberts said, "From 7pm to 8pm.
We rent from the City from 6:30pm to 8:30pm. I generally get there around 6:30pm. I'm there every week even if it's just me." Can this flyer be sent with the water bill?" Mayor Julian said, "We won't be able to do that, but we will post it on our City website. By the way, your use of the building has been very positive. You take care of the building better than a lot of people. So, we appreciate you folks being there."
6. CONSENT CALENDAR
The following items are presented for City Council approval without discussion as a single agenda item in order to expedite the meeting. Should a Council Member wish to discuss or disapprove an item, it must be dropped from the blanket motion of approval and considered as a separate item.
Waive the reading in full of all Ordinances and Resolutions. Ordinances on the Consent Calendar will be adopted by the same vote cast as the first meeting, unless City Council indicates otherwise.
Approve payment of warrants for the period ending February 2, 2022 and ratify payment of warrants for the period ending January 25, 2022.
Approve the Minutes of the City Council Regular Meeting of January 25, 2022, to be ordered filed.
D. Adopt Resolution No. 2022-10 filing the Notice of Completion with the County Recorder, and to approve the five percent retention payment to CalPortland Construction for the 2021 Pavement Rehabilitation Project.
February 8, 2022 City of Guadalupe Council Meeting Minutes Page 3 of 16 E. Adopt Resolution No. 2022-11 approving the final response to the Santa Barbara County Grand Jury report entitled "Pensions in Santa Barbara County Require Vigilance".
Adopt Resolution No. 2022-12 to create a new classification for the position of Police Lieutenant, and authorizing staff to initiate recruitment for this position.
G. MONTHLY REPORTS FROM DEPARTMENT HEADS
1. Planning Department report for January 2022
2. Building Department report for December 2021 and January 2022
3. Public Works/City Engineer's report for January 2022
4. Recreation & Parks report for January 2022
Items #6.B. and #6.F. were pulled. Motion was made by Council Member Ramirez and seconded by Council Member Robles. 5-0 Passed.
Item #6.B. - Warrants
CM Costa, Jr. asked about the item on page 25 of the 1/27/2022 warrants for "tasers, one unit for $25,000". Chief Cash said, "Those are tasers for the whole department. There are 20 tasers, cartridges and holsters." CM Costa, Jr. also asked about the item on page 26 of the 1/27/2022 warrants for "window glass for $1,548". Ms. Shannon Sweeney said, , "That was for window replacements in the City auditorium. The actual windows were cheap. It was the labor that cost the most."
CM Cardenas questioned the item on page 23 of the 1/27/2022 warrants for "PD-New Vehicle for $37,000". She asked, "Is this new vehicle for the patrol unit or what is this to be used for?" Chief Cash, "Yes, that's a new police vehicle that was approved last fiscal year for eventual rotation." CM Cardenas then said, "Oh, okay, so it's part of that rotation." The mayor asked if this vehicle was purchased through another group, a consortium of government groups. Chief Cash added, "Yes, to get the best price, we piggybacked with LAPD because they order such a large volume of vehicles, and we could get a cheaper price. This thing has been sitting for about a year because of the supply chain. That's why it's taken so long. We also have another vehicle in the pipeline. We were told that they probably won't start building it until September, so there's another delay." Item #6.F. - Police Lieutenant Position
CM Cardenas asked, "Are there any specific or additional training or certifications required besides the qualifications listed in the job description?" Chief Cash said, "A Police Lieutenant must obtain a Management Certificate with P.O.S.T. within one year of the new assignment." CM Cardenas then asked, "This is not a P.O.S.T. certificate for any officer but one specific for lieutenant?" Chief Cash then explained the various levels of P.O.S.T. certifications. He said, "First, there's the Supervisory P.O.S.T. for Sargeant which is held in Sacramento for about a week's training. Then for Lieutenant, you need the Management P.O.S.T. certification which takes about 2-3 weeks training. For Captain, it's a Management Certification. For Chief, you need to be in that position for at least two (2) years before you can go for the Executive certification which is a two-week course." CM Cardenas then asked, "So, that's what the possession of the P.O.S.T. Advanced Certificate means?" Chief replied, February 8, 2022 City of Guadalupe Council Meeting Minutes Page 4 of 16 "No, the minimum to apply for this position, though, is the Advanced P.O.S.T. certification. To get that Advance Certification, you have to be a Police Officer for at least 6-10 years. As a minimum qualification to apply for the Police Lieutenant, you need the Advanced Certification. Then once the person is selected, they have one year to get their Management Certificate." CM Cardenas asked, "Okay, but we don't have that written in the job description here. Maybe for HR, do we need to put that in the job description?" Ms. Emiko Gerber, HR Manager, said that that language would be put in the job description.
CM Cardenas further asked, "There are two (2) Sergeant positions. Are we looking to eliminate one?" Chief Cash said, "If we do an internal promotion, we'll still have that Sergeant position. If I look at our current personnel, I don't look at filling it for a year to two years. I'd like to groom internally. I look at the span of control to see as far as supervision and our personnel. If we can manage and we're doing well, we'll look at future budget, also. We also have a Senior Police Officer position.
We've put one of our senior officers in that position. He's one of our tenured officers, so it's like an acting sergeant. There's that kind of supervision, also." Another question was asked by CM Cardenas. She asked, "The promotional process. What are the steps that are followed?" Chief Cash responded, "The promotional process is either internal or external. It's up to the Chief to decide which one will be followed. If it's internal, the announcement goes internally and whoever is qualified can apply. There's an interview and background. If they can make it, the person is promoted. For external, there's an announcement (posting), applications are reviewed, and then an interview with panel. A candidate who passes the interview panel then goes for a Chief interview. The selection process is made after that." Mayor Julian asked if this was a management position, exempt? Chief said, "Yes, exempt." The mayor asked further if this was an internal process, could the Chief say now? Chief Cash said, "It is internal. For the time I've been here, I've been able to survey the entire department. I've evaluated skills and what is needed. I knew what / was looking for having been in that position before. Both Sergeants have more than 10 years' experience. I started grooming doing management-type issues.
The biggest concern that we did not have is a skilled force doing internal investigations on personnel.
That was really lacking. And that is one of the real core aspects of management is being able to do those investigations. So, I've sent them to certain schools for that training and have been able to groom and prepare them for a succession plan just in case I'm not here. They'Il be capable of making sure public safety runs very smoothly. I wanted to make sure that our internal candidates were prepared, and we had people ready to take that next step and the community would be supportive that we would look at our internal people first."
Motion was made by Council Member Costa, Jr. and seconded by Council Member Robles to approve Items #6.B. and #6.F. 5-0 Passed.
7. CITY ADMINISTRATOR REPORT: (Information Only)
Mr. Todd Bodem read a letter from the California Department of Housing and Community Development (Department) and the Strategic Growth Council saying, in part..."Escalante Meadows February 8, 2022 City of Guadalupe Council Meeting Minutes Page 5 of 16 has been awarded an Affordable Housing and Sustainable Communities ('AHS) program. The award amount is $19,375,180. This is very positive, and I'll turn it over to Shannon now." Ms. Sweeney added, "Yes, we're very excited. We call it the AHSC Grant. The amount of $12M is related to the Escalante Meadows housing project itself, and the remaining $7M is associated with public transit and transportation. We've worked closely with the Housing Authority and Santa Barbara County on this. Some of that will go to CalVans. $2M will go to creating safe, multi-purpose path on the southside of 11"h Street, from People's Self-Help to Mary Buren School. Just under $500,000 is allocated to the Amtrak station for restrooms and electrical vehicle chargers. I've submitted a grant application to Clean California Local Program Grant program to leverage the train station funding as a match, requesting an additional $1.6M to rehabilitate the entire Amtrak station site. We'll find out on March 1st whether we are able to leverage the monies from the AHSC grant to get the Clean California grant."
8. DIRECTOR OF PUBLIC SAFETY REPORT: (Information Only) Chief Cash reported the following:
"Santa Barbara County is providing home (Covid test kits to different communities who request them. There are 900 home test kits, two (2) uses per kit (1,800 uses). Kits had already been given to the Housing Authority, Senior Center, Catholic Charities (The Beatitude House) and Escalante Meadows. There are 900 kits now. The County asked if there's a public distribution point to post countywide to say that kits are available for free. We want to give these kits to Guadalupe residents before we go outside to come here and pick them up. I can pick up a supply weekly. I'd like to get rid of them as soon as possible to our residents. So, any help I can get would be great. Maybe I need to talk to Hannah (Fuentes) to maybe do something with Parks & Rec to get to people, but I'm open to any suggestions.
The Department of Justice is waiting for the Attorney General's office to schedule the presentation on the results of the police shooting investigation. They will notify me of the date and time, but it may be as early as the week of 2/21 - 2/25. I want to get that as soon as possible.
Chief read a letter from a citizen. 'To Whom It May Concern, my name is Adelita L. Diaz. I live at 1056 Guadalupe Street, Guadalupe, Ca 93434. I reside in front of Guadalupe Street. I was cited a parking violation on 02/04/2022 for a fine of $52.00. I'm 67 years old and I'm on social security, my only income. How am I supposed to live in Guadalupe in my residence knowing that I'll be cited over and over again? I have no funds to pay my fine. I am asking to be given a window sticker to allow me to park in front of my residence and to have my fine waived. I'd appreciate it if you'd consider this for me. Sincerely, Adelita Diaz.' This has to do with our just starting street sweeping on Guadalupe Street. There's a 'No Parking' sign from 12:00 a.m. to 6:00 a.m. Right now, we're only doing on Thursday night till Friday unless we get issues. She lives a couple doors down from the post office. I've visited her twice. When we found out she had a ticket, we're trying to work with her. I told her that I can't change the law but if you write in, this lets people know you have an issue.
Getting this letter says that citizens are engaging. They're stepping up and saying something and February 8, 2022 City of Guadalupe Council Meeting Minutes Page 6 of 16 they want help. As it turned out, the police officer who issued the ticket wrote the wrong license plate. So, we voided that ticket, and she was happy. I told her voiding the ticket had nothing to do with me. I later went back to her house and said if she was handicapped, I'd have the authority to make a disability parking spot. I need to sit with the City Attorney to see what provisions can be made to maybe help her out."
CM Costa, Jr. asked if there was parking for that unit in the back. Chief said, "No, the only parking is on Guadalupe Street. I spoke with Mr. Alvarez about that. Some of the people who got tickets said they could park there. We did give them a one-day permit as there was maintenance being done and the one-day permit was requested. So, yes, she doesn't have off-street parking and has to park in front of her house." CM Costa, Jr. then asked, "How many residents are there where there's no off-street parking? We need to do a survey. At Orcutt around Righetti High School, they have signs that say, 'parking permit', so the kids aren't parking there." Chief said he'd review and do some research. Mayor Julian added, . "There's a 2-hour parking limit for all of Guadalupe Street that was issued before because some people park there all day long. There aren't too many homes that don't have parking. Look at the corner of Guadalupe & 11*h Streets...don't know if the issue is the same there." The mayor suggested it's worth it to talk to the property owners. CM Cardenas asked, "For buildings, isn't there a code that there has to be parking available for every unit?" CM Costa, Jr. said, "Yes, but those are old apartments that were built before any code said there had to be parking.
They were grandfathered in." Mayor Julian then suggested to Chief Cash to meet with the City Attorney and property owners on this issue.
9. MAYOR'S REPORT- UPDATES
The mayor emphasized that there's a lot going on in the City. He encouraged all to read the report on the City's website.
REGULAR BUSINESS
10. Second Quarter FY 2021-2022 Financial Report and Budget Review.
Written Staff Report: Lorena Zarate, Finance Director
Recommendation: That the City Council accept the Second Quarter Financial Report and Budget Review and adopt Resolution No. 2022-13 approving budget amendments to the FY 2021-2022 budget and ARPA distribution of funds.
Ms. Zarate gave an overview of the financial report and budget review. She said, "The purpose of the report is to provide a status of cash, fund balance and budgeted Revenue and Expenditures versus actual at 50 percent of the fiscal year expended...also, to provide a projection of revenue and expenditures for the remaining six months of the fiscal year and to propose budget revisions." She emphasized that estimated figures for fiscal year 2021 were used in this analysis as the 2021 audit has not been finalized. The following is a summary of the report:
February 8, 2022 City of Guadalupe Council Meeting Minutes Page 7 of 16 For the General Fund, as of December 31, 2021, total cash was $188,428.05 versus December 2020 which showed a balance of $466,435.36. Property tax revenue in the amount of $649,636 was received in early January adding to the General Fund's cash balance.
General Fund revenues are under budget or below target by 38.6 percent. Those areas that have fallen short as compared to the budget through December 2021 are: 1) Property Tax, 15.2%; 2) Sales Tax, 18.1%, and Franchise Fees, 33.5%. All other revenue categories were close to, if not exceeding, 50% of the budget.
For projected revenues through the remaining six (6) months of the fiscal year, those were as follows:
• Tax Revenues:
Sales Taxes - Through second quarter 2021, revenues were under budget. However, HDL has confirmed that the City is on target to receive the budgeted sales tax and local sales tax revenue, which includes Measures N and X, by the end of the fiscal year.
Franchise Fees - These appear under budget through December 2021 but are expected to be received by the end of the fiscal year.
Property Taxes - These were originally budgeted per a projection provided by the County.
The time of receipt for these taxes is not always consistent. (As stated above, the City has received $649,636 in property taxes with the remainder amounts expected between May and June 2022.)
• Building & Planning Revenue - Revenue through the end of this fiscal year is projected to be received as expected. 53 Pasadera lots were expected and shown in the original budget.
There actually were 57 Pasadera lots permitted this fiscal year with no additional permitting to occur. Escalante Meadows is on track to be permitted before the end of June 2022. The City still expects to receive $290,509 in LEAP/REAP grants for the general plan update and planning expenses. (This amount is less than budgeted as $12,765 was received in the prior fiscal year.) The OTC Plan Check revenue is at $14,172, more than the budgeted amount. • Public Safety Revenue - Mutual aid reimbursements in the amount of $224,678 are expected to be received for fire services provided. Airport services and the school resource officer are now included in the revenue projections. (The budget had the costs and revenue netted out resulting in the revenue and costs not explicitly reflected in the budget.) Per the City's external auditor, reimbursement for these services should be reflected as general fund revenue, with corresponding costs. Therefore, revenue for the airport and SRO services are projected to be $370,851. Chief Cash added, , "The $224,678 reimbursement for the Cedar Fire will be received soon. I signed paperwork and sent it back to State." February 8, 2022 City of Guadalupe Council Meeting Minutes Page 8 of 16 • Other Revenue - It is expected that the other revenue line items will be received through the remainder of the fiscal year. Not previously budgeted was $63,000 that the City received in Cannabis application fees. Projections also includes revenues from ARPA funds transfer in the amount of $365, 706 to the General Fund. (The auditors said that this amount should be shown as revenue, and costs should be shown in appropriate expenditure categories.) Overall, General Fund revenue is projected to be more than what was originally budgeted by about $1,023,642.
General Fund expenditures are slightly above budget at 52 percent expended. The City Attorney and Public Safety departments are currently shown as over budget. For the City Attorney, the overage is due to amounts paid for labor union negotiations. As for the Public Safety Department, that is split into two areas: 1) Fire's overage is related to overtime. Although Fire is shown at 59% over budget for the first six (6) months of this fiscal year, it actually is 181% over budget. This relates to the mutual aid contract reimbursements for $224,678 (as explained in the Revenue section), and 2) Police shows an overage at 54%. This is due to the reclassification of the reimbursement for the airport and school resources officer services (as explained in the Revenue section). Otherwise, Police would be 48% within budget. Overall, expenditures for the General Fund are higher than revenues so far relating to the timing of funds for Sales and Property taxes.
Projected expenditures through the remaining six (6) months of the fiscal year are expected to be over by 16%. Those were as follows:
• Council - in line with the budget.
• Administration - over budget by $2,200 (updated payroll calculation which included a cash out of vacation time not previously in the budget).
• Attorney - over budget by $30,000 due to labor union negotiations, proposed to be funded by ARPA.
• Finance - under budget by about $26,260 (updated payroll calculation for family leave and overestimation of personnel costs during labor negotiations). • Non-Departmental - over budget by about $95,081 due to: 1) overage of $32,887 for IT costs, website design, and adobe licenses, 2) $2,098 for PPE masks, and $73,000 for new planning software, thru CIP transfer. Total of $107,985 proposed to be funded by ARPA. Interest expense from interfund loans are expected to be lower by $16,808. • Building Maintenance - over budget by about $161,000 due to: 1) $18,220 increase with October hire of a new maintenance worker, and projected hire of an engineering technician in April, and 2) $15,700 higher communication expense for fiber optic network. Other expenses in the amount of $129,000, such as auditorium upgrades, vegetation maintenance, February 8, 2022 City of Guadalupe Council Meeting Minutes Page 9 of 16 finance upgrades, etc. are proposed to be funded by ARPA. Communication expense is projected to be $15,700 for fiber optic network. Further research is needed on this expense. • Police - over budget by about $307,000 ($302,000 related to personnel costs) due to: 1) reclassification and reimbursement for the airport services and SRO officer, as previously explained; 2) 3% temporary incentive for two employees; 3) replacement of two police officers, with February and April hire dates; 4) $18,000 savings with internal promotion of lieutenant; 5) change from Coordinator to Manager for emergency services for an increase of $3,298 proposed to be funded by ARPA; 5) intern temporary positions for $10,000 proposed to be funded by ARPA, 6) projected overtime, and 7) fuel costs over by $4,900.
CM Cardenas asked, "How was the $18,000 calculated for Police savings for the Lieutenant position?" Ms. Zarate responded, "I estimated the Sergeant's salary through year-end with the trend of overtime through December versus the Lieutenant's salary beginning in March. The difference is approximately $18,000." CM Cardenas further asked for detailed figures on that calculation. Ms.
Zarate referred to the 'Budget Review Exhibits' showing listing of employees by department. She said, "The employee is listed twice. The Sergeant hours are 400 from January through end of February and the cost for that. The Lieutenant hours are 680 for the promotion in March through end of fiscal year. If this employee stayed in the Sergeant's position, that would have been, with overtime projected, $239,000 which is total compensation (salary, benefits, and associated personnel costs) versus Lieutenant's total compensation using Step A, which is $220,000, for a difference/savings of approximately $18,000."
• Fire - over budget by about $192,000 due to: 1) projected overtime of about $190,000, and 2) fuel costs of about $2,000. As stated in the Revenue section, $222,000 reimbursement is expected for mutual aid services.
• Parks - over budget by about $114,000 due to updated personnel costs for: 1) new manager position; 2) maintenance lead position; 3) event/rental building attendants; 3) facility coordinator, and 4) new maintenance worker hired in October. This totals $107,800 of which $71,496 for manager and maintenance lead positions proposed to be funded by ARPA. Other proposals to be funded by ARPA for $10,744, are a drinking fountain, vegetation maintenance, and manager workstation.
• Building & Planning - over budget by about $25,000 due to updated personnel costs for: 1) new associate planner to be hired in April, and 2) temporary assignment to help scanning with new software, proposed to be funded by ARPA for $1,210. • Cannabis - projected $57,500 not previously in the budget. City has received $63,000 in cannabis application fees.
The fund balance is a measure of our financial resources or our reserves and represents the total accumulated from prior years at a point in time. General Fund balance as of December 31,2021 was February 8, 2022 City of Guadalupe Council Meeting Minutes Page 10 of 16 negative ($139,406.40), due to excessive expenditures over revenue, but property tax revenue in early January will help. By comparison, the fund balance as of 6/30/2021 was $518,375.93. (Full disclosure, the FY 20/21 is currently under audit and may change the fund balance, but it's not likely to be much.) The General Fund Balance projection shows the City may receive revenues in the amount of $7,066,206, which is $1,023,642 more than was originally budgeted for by the end of the fiscal year. Projected expenditures are to be a total of $6,888,217, an increase of $957,736 more than budgeted, and results in a net of $177,993, a rather small cushion. The fund balance at the end of June 2022 is expected to be $667,346. With the total proposed increases to the budget of $983,996, the total of all departments would be at 45% through the second quarter. It remains a priority for the City to continue to increase the fund balance to establish a minimum reserve of 15% of the General Fund operating budget, which is about $804,117. The City has ARPA funds which must be used by 2024 and is hopeful that cannabis and additional housing developments will bring in added revenue.
Enterprise Funds: Generally speaking, these funds are healthy. For Water, revenue was 48 percent of budget; for Wastewater, 43 percent of budget. Operating expenses for Water was 32 percent and for Wastewater, 19 percent below budget. Projected revenue for all enterprise funds is in line with the budget with a recommendation for a budget amendment for additional expected revenues.
Projected expenses for all enterprise funds are expected to be under budget. City staff recommends budget amendment for additional expected expenditures relating to both the Water and Wastewater Operating Funds for $33,000 and $10,200 respectively, and Transit Fund for $133,729.
Street Funds: Projected revenue in line with budget. Recommendation for budget amendment for additional expected revenues in the amount of $40,000 for Measure A fund and $108,678 for the Gas Tax fund. Projected expenses expected to be under budget. Budget amendment recommended for additional expected expenditures for Measure A in the amount of $56,000.
Other Funds
Public Safety Funds - Budget amendment recommendation to reduce expected revenue by $35,000 (airport service-previously explained in 'Public Safety Revenue').
Lighting Funds - Budget amendment recommendation to increase revenue and expenditures in the amount of $2,787, funded by ARPA. Also, a recommended budget amendment for $16,500 for consultant services for documentation preparation.
Park Development Fund - Budget amendment recommendation to increase revenue and expenditures by $75,000 (T-Mobile grant, $50,000 and $25,000, ARPA funds).
CDBG Fund - Budget amendment recommendation to increase revenue and expenditures by $20,000 related to ARPA funds for Los Amigos de Guadalupe services and increase expected revenue by $300,000, donations from Santa Maria Valley Chamber for Le Roy Park.
February 8, 2022 City of Guadalupe Council Meeting Minutes Page 11 of 16 Capital Improvements Projects - The several updates made are: 1) $73,000, planning software; 2) $300,000 for construction of City Council chambers remodel, and $100,000 for the architectural designs, for a total of $400,000 to be funded by ARPA; 3) $75,000 for O'Connell Park ($50,000, T- Mobile and $25,000, ARPA funds); 4) $50,000 change from street rehabilitation to sidewalks from Measure A; 5) $131,729 for infrastructure improvements for transit ($100,000 for Amtrak station funded by a grant and $31,729 previously approved by Council).
ARPA - Total award is $1,860,000. Proposed allocation of $1,710,434, with $149,566 unallocated.
Based on the findings from the special October 5th 'ARPA' meeting, City staff proposes to use $846,743 of these funds in the current fiscal year. Ms. Zarate said, , "We've only spoken about what we can achieve in the next six (6) months of the fiscal year. Staff would like to continue to come to the Council for decisions on future proposals for use of these ARPA funds for the next couple of years we have to spend these funds." At this point, Ms. Zarate said that that was the end of her report and asked if the Council or staff had any questions.
Mayor Julian said, "On Parks and Recreation, the new Recreation Services Manager didn't start until January. The position, though, was budgeted from July through December. Are those just extra funds?" Ms. Zarate said, "Yes, they're still remaining." Ms. Gerber, HR, said, "I believe what the mayor is asking is that we originally slated this position to start December 1st. The actual date was January 10th so there would be about one month's savings." The mayor then said, "Put in 'Parks & Recreation Supplies and Equipment' as there's very little in there. Yes, ARPA is a moving target. This was a lot of work (referencing the entire 2Q staff report and financial review)." CM Cardenas asked, "Do we use zero-based budgeting?" Ms. Zarate said, "No, currently, we use traditional budgeting which is using prior budgets and work off of that and use actual costs that occurred in prior years as our starting point. Zero-based budgeting is starting from zero, from scratch justifying proposed expenses. You don't look at the past, you look at the future, as every dollar is accounted for. You estimate what you're actually going to spend with no cushion. It's to limit your costs. It's a very conservative way to approach a budget especially if a city is struggling to maintain or build reserves. In late April we'll plan for a budget workshop and go from there. But I think it's a good approach when we're trying to build reserves." Mr. Bodem added, "But with zero- based, you can still do the comparisons with prior years." Ms. Zarate said, "Yes, we have to be realistic, but it's a good approach to cost savings in various areas." CM Cardenas further said, "This would be good for us to do. In the next two (2) years, if we continue this trend, we maybe can reach the 15% reserves. That zero-based budgeting could eliminate any inefficiencies that can be rolled over each year."
There was one email sent in on this item from Shirley Boydstun. CM Cardenas read it. "To:
Guadalupe City Council meeting of February 07, 2022..."For several years the Council has been advised by the AUDITORS and the Financial Director and residents like me that spending by the various departments is out of hand and leaving the general fund, especially, in dire straits. Council shares the responsibility to reign in these expenditures to keep Guadalupe from being the subject of another County Grand Jury directive to perhaps disincorporate...something none of us want to February 8, 2022 City of Guadalupe Council Meeting Minutes Page 12 of 16 happen. It would appear that an unexpected number of people have been added to the payroll...although some may be mitigated through grant funds, yet that brings expenditures for offices, desks, chairs, computers and other items for those agencies. The Covid crisis will not go away soon, and more dependencies will become apparent needing more City assistance. Where will that funding come from? The suggested one percent increase in the utility surcharge, where every resident participates and is a known quantity, may have exceeded the sales tax receipts. " Signed, "
Shirley Boydstun.
Mayor Julian added, "Back in 2013, we were $700,000 underwater. We slowly crept up to $37,000 in the black or red. Can't remember but it's slowing going towards there being money in the bank.
We can fend off the Grand Jury's request to get disincorporated. With Pasadera coming online and they start building on the southside of the Santa Maria Railroad, I think without that development, we'd be hurting. With dispensaries, it's paying for itself where we're going. There's a meeting on Wednesday, February 16th, a public hearing on cannabis. I'm in support of what Shirley Boydstun is saying - just because money's there, don't just start grabbing, saying I need this, and I need that." The mayor then asked, "There are needs in this building. There were people roaming around here.
Who were they? Can you give us an update on that?" Ms. Sweeney said, "Representatives from Santa Barbara County and Spectrum. They were looking at the County's cable feed. Spectrum is required to provide a public access feed. The equipment that we have is rather outdated. The County representative was here with Spectrum upgrading the equipment necessary to provide HD, rather than analog signal. One of the benefits of having work with them is sharing is some of our ideas, such as live streaming, Spanish translation, etc. So, by speaking with them, having all those folded in, also, so that as the County's doing their upgrade, we can include those elements here in near future. We're starting to consolidate our equipment in a centralized location to make it easier for maintenance staff."
Mayor Julian said, "Somewhat related to that, there's a group, along with Tom Martinez, architect, who did the initial building survey, about how we can integrate everything we're trying to do, like getting the power, getting all that we need to do... so we're not doing everything by piece meal. We need to get together." Ms. Sweeney then said, "That's one of the reasons we haven't gone out for any architectural drawings for the Council chambers upgrades. We don't wish for us to get ahead of ourselves. We need to fold in everyone's thoughts from the meeting we'll have on the 15th" CM Ramirez said, "Hopefully, things will be positive at the end of this fiscal year. Shirley's point is one that I share in that there are certain departments we tend to need to look over, such as MOUs and re-negotiations. Those, though, are out of our hands. If we're adding anymore new positions, please have a critical eye on the Big Picture, not a 'siloed' picture of your departments. Look at the team aspect of it. I see additions of many management-type positions. We don't want to get too top heavy and not enough people to actually carry out that work. Or need to rely on temporary help.
You need to have that critical eye to say that we do need that infrastructure, but we need to make things so we're not dependent on a person but rather making it about a policy or procedure. If anyone of you were to leave, that that knowledge doesn't go away with you. You're all valuable February 8, 2022 City of Guadalupe Council Meeting Minutes Page 13 of 16 people and if you left, there'd be a huge void. You all already do the work of two or three people. I see things that we didn't agree with as a Council but won't argue the point because of this great financial report here. On grant funded positions, we need to hustle to make sure they don't leave us.
That's another one where we have these great people, and the money runs out and then it's gone." The mayor said, "In April, when we do the budget study for next year, we need to really look at where we are at that point. Especially with property tax money not coming in, and we see that we're under- budget a lot. It's kind of spooky to see that all the time. And we know that we're going to get those taxes late. Hopefully, Hal is right in saying that that sales tax money will be coming in." Motion was made by Council Member Costa, Jr. and seconded by Council Member Ramirez to adopt Resolution No. 2022-13. Roll Call Ayes: 5 Noes: 0 5-0 Passed.
11. FUTURE AGENDA ITEMS
Todd Bodem said to move the "Rent Control Pros and Cons-Presentation" from 2/22 to 3/8 meeting.
He also suggested putting the request to relocate the Vietnam Veterans flagpole. Mayor Julian said to wait for the issues between the City and the American Legion to be resolved. CM Ramirez said, "Isn't this more an item for the Recreation & Parks Commission to handle since the Veterans Hall is a 'facility?" City Attorney Sinco said, "Right now we're dealing with legal issues and the Post (American Legion) has representation, and I'm working through those issues. As the mayor indicated, we are kind of on the downward slope now. We've worked through quite a few of them but there are a few more. Once all legal issues are resolved, then the staff can handle the facility.
Right now, though, there's not agreement on all issues." Mayor Julian added, "You're correct in the sense that that's a facility, and Parks & Recreation should get a hold of but there are basically two (2) items. One is the flagpole which is on private property.
Before, there was a request to move it to Le Roy Park. Veterans said they wanted it visible to all.
They talked about moving that flagpole and the monument and plaque to the Veterans Building.
There's not a lot of area there to put it there. The corner building (on Guadalupe & gth Streets) is privately owned. That building may be sold, and the new owners may want the flagpole removed.
The veterans' concern is that if the building is sold, a parking space will be put there. One thought is to move it to the actual Veterans Memorial Parking Lot. The Recreation & Parks Commission will handle after the MOU's done. We're getting there."
CM Costa, Jr. said, "I'd like to see if we can get input on traffic on 10th & Peralta Streets. Maybe look at a temporary divide so people aren't making u-turns. Put up some signs, etc. for the safety of the kids." He also asked for a review of the ordinance prohibiting vehicles to be parked on the street beyond a 72-hour period. He said, "People have wrecked cars that are sitting on the street for weeks and that's a safety issue. We have to come up with something to move that car to their driveway and cover or tow at the owner's expense. There were two cars that were damaged and just sitting in residential areas. There was one on Obispo that was finally moved. There's another on Campodonico."
February 8, 2022 City of Guadalupe Council Meeting Minutes Page 14 of 16 Mayor Julian said, "The Chief has shared a lot of requests to have Code Compliance ticket all those people, especially the ones with expired licenses. What would the DMV say about expired licenses? I saw one car with a 2020 license sticker on it." There was some discussion of cars having "tow" stickers on them. The mayor asked what happens if they don't move the cars? Chief said, "They're playing games. In the past, state law said just move it. You could move it a couple of feet and you're fine. In the past, we could mark vehicles with a chalk mark so we could see. Through lawsuits we now are not allowed to leave anything on the vehicle. Now we're taking photos. The biggest problem are the trailers, utility-type trailers on the streets. There's no place to put them.
Unfortunately, they put them in other neighborhoods. People want zero tolerance. They want people put in jail but that's unrealistic. It's frustrating."
12. ANNOUNCEMENTS - COUNCIL ACTIVITY/COMMITTEE REPORTS
Mayor Julian
There will be two (2) council members absent from the March 8th meeting. The most senior council member will chair that meeting.
CalVans has a meeting on Thursday, 2/10, at 10am which is the same time there is a County Park meeting regarding the master plan.
Food Bank: on 2/3, there were 300 families served, or approximately 1,200 individuals.
Baseball Field at O'Connell Park: On Saturday, 2/5, there were 18 volunteers weeding and helping to get the field in shape. The City will be getting a new weed sprayer. City staff, along with the Director of Boys & Girls Club and members, Terry Bauer, who is a teacher at Mckenzie, and four (4) Rotary Club youth from Santa Maria were all out there helping to do what needed to be done. These youth go to Righetti High School and live in Orcutt.
Chief Cash
There were citizen complaints from Pasadera resident about the Police giving out tickets. He said that it's easier if the complaints are called in. Mayor Julian asked, . "What were the complaints about?" Chief said, "Speeding. When we did more in-depth investigations, we found out that they were mostly the workers at Pasadera. Craig Smith, the developer, brought it up to us, so we did some surveillance and then told Craig that they're his employees. So, he's helping put up signage in the area for speeding and no commercial trucks parking in residential areas CM Robles
"There's a new mural project beginning. Stephanie Krouse again will be doing the primary painting of the mural and I'll be helping her. It will be on the wall next to the Simpatia Restaurant. The February 8, 2022 City of Guadalupe Council Meeting Minutes Page 15 of 16 sketch is done. I'll let you guys be surprised when you see it. I've seen the sketch and it's really nice. it encompasses what Guadalupe is and what our value is. It'll be very cool."
13. ADJOURNMENT
Motion was made by Council Member Cardenas and seconded by Council Member Costa, Jr. to adjourn the meeting. 5-0 Passed. Meeting adjourned at 7:48 p.m.
Prepared by: Approved by
Quela egg
Amelia M. Villegas, City Clerk. Ariston Julian, Mayor
February 8, 2022 City of Guadalupe Council Meeting Minutes Page 16 of 16