Agenda packet — Guadalupe City Council, June 28, 2022 (part 1 of 3)

June 28, 2022 City of Guadalupe Council Meeting Agenda Page 1 of 6 City of Guadalupe
AGENDA
Regular Meeting of the Guadalupe City Council
Tuesday, June 28, 2022, at 6:00 pm
City Hall, 918 Obispo Street, Council Chambers
The City Council meeting will broadcast live on Charter Spectrum Cable Channel 20 and live streamed on the City of Guadalupe’s Official YouTube channel:
https://www.youtube.com/channel/UCaxeHWd9JkmvKnGFU8BAYQQ If you choose not to attend the City Council meeting but wish to make a comment during oral communications or on a specific agenda item, please submit via email to [email protected] no later than 1:00 pm on Tuesday, June 28, 2022.

Please be advised that, pursuant to State Law, any member of the public may address the City Council concerning any item on the Agenda, before or during Council consideration of that item. If you wish to speak on any item on the agenda, including any item on the Consent Calendar or the Ceremonial Calendar, please submit a speaker request form for that item. If you wish to speak on a matter that is not on the agenda, please do so during the Community Participation Forum.

The Agenda and related Staff reports are available on the City’s website: www.ci.guadalupe.ca.us Friday before Council meeting.

Any documents produced by the City and distributed to a majority of the City Council regarding any item on this agenda will be made available the Friday before Council meetings at the Administration Office at City Hall 918 Obispo Street, Monday through Friday between 8:00 am and 4:30 pm, and also posted 72 hours prior to the meeting. The City may charge customary photocopying charges for copies of such documents. Any documents distributed to a majority of the City Council regarding any item on this agenda less than 72 hours before the meeting will be made available for inspection at the meeting and will be posted on the City’s website and made available for inspection the day after the meeting at the Administrator Office at City Hall 918 Obispo Street, Monday through Friday between 8:00 am and 4:30 pm.

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, including review of the Agenda and related documents, please contact the Administration Office at (805) 356.3891 at least 72 hours prior to the meeting. This will allow time for the City to make reasonable arrangements to ensure accessibility to the meeting.

1. ROLL CALL:

Council Member Liliana Cardenas
Council Member Gilbert Robles
Council Member Eugene Costa Jr.

Mayor Pro Tempore Tony Ramirez
Mayor Ariston Julian
June 28, 2022 City of Guadalupe Council Meeting Agenda Page 2 of 6

2. MOMENT OF SILENCE

3. 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.

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.

6. CONSENT CALENDAR
The following items are presented for City Council approval without discussion as a single agenda items 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.

A. 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.

B. Approve payment of warrants for the period ending June 21, 2022.

C. Approve the Minutes of the City Council Regular Meeting of June 14, 2022, to be ordered filed.

D. Adopt Resolution No. 2022-46 approving the Goal Statement for Fiscal Year 2022-23.

E. Accept the May 2022 Financial Report.

F. Adopt Resolution No. 2022-52 approving professional services agreement with Badawi & Associates for auditing services for fiscal years ending June 30, 2022, through 2024, with the option of extending the contract for two subsequent fiscal years.

G. Adopt Second Reading of Ordinance No. 2022-502 of the City of Guadalupe, California, amending portions of the Chapter 3.20 of title 3 of the Guadalupe Municipal Code related to Transient Occupancy Tax to increase the tax rate from 6% to 10% as well as increase the types of occupancy categories subject to the tax.

H. Transit Update – for informational only.

June 28, 2022 City of Guadalupe Council Meeting Agenda Page 3 of 6 I. Adopt Resolution No. 2022-53 directing staff to forward to the Auditor Controller’s Office of the County of Santa Barbara the water standby charges for vacant parcels within the City of Guadalupe for Fiscal Year 2022-23.

J. Adopt Resolution No. 2022-54 authorizing the City to enter into an agreement for professional building inspector services with David R. Rose.

K. MONTHLY REPORTS FROM DEPARTMENT HEADS

1. Public Safety Department:
a. Police Department report for May 2022
b. Fire Department report for May 2022
c. Code Compliance report for May 2022

2. City Treasurer’s report for May 2022

3. Recreation & Parks report for May 2022

7. CITY ADMINISTRATOR REPORT: (Information Only)

8. DIRECTOR OF PUBLIC SAFETY REPORT: (Information Only)

9. MAYOR’S REPORT- UPDATES

PUBLIC HEARING

10. Public hearing to consider TrusPro addition and Solar Project, 2022-095-DR, to approve two additions to the shop building totaling 1705 square feet and approve a roof-mounted photovoltaic system totaling 38.48 kW (370 modules).

Written report: Larry Appel, Planning Director
Recommendation: That the City Council:
a. Receive a presentation from staff;
b. Conduct a public hearing, including: 1) an opportunity for the applicant to present the proposed project, and 2) receive any comments from the public; and c. Adopt Resolution No. 2022-55 approving 2022-042-DR, including DR Findings, CEQA Class 32 Exemption and Conditions of Approval.

11. Pasadera Landscaping and Lighting District (FY 2022-23) – Public Hearing.

Written report: Shannon Sweeney, Public Works Director/City Engineer Recommendation: That the City Council conduct a public hearing to provide all present with the opportunity to speak regarding the assessment for the Pasadera Landscaping and Lighting District and adopt Resolution No. 2022-56 confirming the Engineer’s Report, Assessment Diagram, and assessments related thereto for Fiscal Year 2022-2023.

June 28, 2022 City of Guadalupe Council Meeting Agenda Page 4 of 6

12. Guadalupe Benefit Assessment District (FY 2022-23) – Public Hearing.

Written report: Shannon Sweeney, Public Works Director/City Engineer Recommendation: That the City Council conduct the public hearing to provide all present with an opportunity to speak regarding the assessments for the Guadalupe Benefit Lighting District No. 1 and adopt Resolution No. 2022-57 setting the proposed assessments.

13. Guadalupe Lighting District (FY 2022-23) – Public Hearing Written report: Shannon Sweeney, Public Works Director/City Engineer Recommendation: That the City Council conduct a public hearing to provide all present with an opportunity to speak regarding the assessments for the Guadalupe Lighting District and adopt Resolution No. 2022-58 setting the proposes assessments.

REGULAR BUSINESS

14. Fiscal Year 2022-2023 Proposed Budget.

Written report: Lorena Zarate, Finance Director
Recommendation: That the City Council adopt Resolution No. 2022-59 accepting the proposed budget for the fiscal year 2022-2023, along with the Capital Improvement Projects Budget, Capital Facilities Program of Projects, and American Rescue Plan Act (ARPA) allocation of funds.

15. Approval of City Policy for Veterans Memorial Building.

Written report: Philip F. Sinco, City Attorney
Recommendation: That the City Council adopt Resolution No. 2022-60 approving a policy for the shared use of the Veterans’ Memorial Building between veterans’ group, the City, and the general public.

16. FUTURE AGENDA ITEMS

17. ANNOUNCEMENTS – COUNCIL ACTIVITY/COMMITTEE REPORTS

18. ADJOURNMENT TO CLOSED SESSION MEETING

CLOSED SESSION

19. Public Employee Performance Evaluation
(Subdivision (b) of Government Code section 54957)
Title: City Attorney
June 28, 2022 City of Guadalupe Council Meeting Agenda Page 5 of 6

20. ADJOURNMENT TO OPEN SESSION MEETING

21. CLOSED SESSION ANNOUNCEMENTS

22. ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall display case and website not less than 72 hours prior to the meeting. Dated this 23rd day of June 2022.
____________________________________
Todd Bodem, City Administrator
Todd Bodem
June 28, 2022 City of Guadalupe Council Meeting Agenda Page 6 of 6

PROPOSED FUTURE CITY COUNCIL AGENDA ITEMS
Council Meeting: Date and Subject Department Agenda Category Tuesday, July 12, 2022, at 6:00 pm / Regular Meeting
Swearing-in of Police Lieutenant Carlos Limon Ceremonial Calendar Animal Control Services – 5 Year Contract Administration Dept Consent Calendar Parks / Facilities Lead Job Description Recreation & Parks Dept Regular Business Commercial Cannabis Business -Timeline City Attorney Regular Business Fire & POA Negotiations Closed Session
Tuesday, July 26, 2022, at 6:00 pm / Regular Meeting
Le Roy Park Phase 2 Cost Estimate Discussion Public Works Department Regular Business Tuesday, August 9, 2022, at 6:00 pm / Regular Meeting
Other Unscheduled Items Proposed
Date of Item
Department Agenda Category
Tree Ordinance Public Works New Business
Sidewalk Vending Ordinance Planning Department New Business Vacant Property Ordinance Administration Dept New Business Pasadera Public Infrastructure Dedication Public Works Dept New Business Food Truck and Special Event Ordinance Planning Dept New Business Gift Policy City Attorney New Business
Master Fee Schedule Update Finance Department Workshop
Pasquini Lease Agreement July 2022 Public Works Dept. Consent Calendar Recognizing Food Distribution Volunteers Ceremonial Calendar Facility & Parks Use Fee Schedule Changes Recreation & Parks Benefit for Unrepresented Employees Human Resources New Business Establishing a downtown residential permit
parking area in the 1000 block of Guadalupe
St.

City Attorney New Business
Prer::/$.

Agenda Item No. 6B

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of June 28, 2022
Reviewed by: Approved by:

Veronica Fabian
Finance Account Clerk
Lorena Zarate
Finance Director
Todd Bodem
City Administrator
SUBJECT:

RECOMMENDATION:

Payment of warrants for the period ending June 21, 2022 to be approved for payment by the City Council. Subject to having been certified as being in conformity with the budget by the Finance Department staff.

That the City Council review and approve the listing of hand checks and warrants to be paid on June 29, 2022.

BACKGROUND:

Submittal of the listing of warrants issued by the City to vendors for the period and explanations for disbursement of these warrants. An exception, such as an emergency hand check may be required to be issued and paid prior to submittal of the warrant listing, however, this warrant will be identified as "Ratify" on the warrant listing.
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45 June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 1 of 20

MINUTES
City of Guadalupe
Regular Meeting of the Guadalupe City Council
Tuesday, June 14, 2022, at 6:00 pm
City Hall, 918 Obispo Street, Council Chambers

1. 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 members were present.

2. MOMENT OF SILENCE
Prior to the “Moment of Silence”, Mayor Julian asked that we continue to offer thoughts and prayers for those in Ukraine living and fighting in the undeclared war.

3. PLEDGE OF ALLEGIANCE

4. AGENDA REVIEW

5. CEREMONIAL CALENDAR
• Recognizing June 2022 – Pride Month Proclamation
• Juneteenth Proclamation
Mayor Julian read the above proclamation (s) included in the city council packet but stated that a correction needs to be made to the Juneteenth Proclamation in the second “WHEREAS” changing the date from June 19, 1895, to June 19, 1865.

6. COMMUNITY PARTICIPATION FORUM
Each person will be limited to a discussion of three (3) minutes or as directed by the Mayor.

Agenda Item No. 6C
June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 2 of 20 Mayor Ariston Julian
Mayor Julian stated that the Community Participated at Le Roy Park where the City celebrated a new park for a new era at the Ribbon Cutting event on June 12, 2022. He goes on to say, “that did you know in 1871 Theodore Le Roy donated several acres along the Guadalupe River to establish a park…..today’s Le Roy Park hopes to meet the ever-changing needs of our growing community with a focus on recreational and health activities for all ages.” Mayor Julian provided an overview of this historic event:
• A Blessing by Father Masseo Gonzales was provided.
• Color Guard and presentation of colors/4 guard units to include Chumash Color Guard (Deek Segovia, Mathew Cepeda, Charlie Centeno & Louie Espinosa) • Boots and Shoots: Mr. Louie Navarro, Veterans and 86-year resident of Guadalupe • Vietnam Veterans of America Post #982 (James May, Ray Espinoza, and Dennis Hennisey)
• National Anthem by Mr. Dennis Paduganan
Guest Speakers were:
• US House of Representative, Salud Carbajal ($1.7 million Phase 2) • Carson Link, District State Senator Limon (State Sponsoring Royal Theater project along with Representative Cunningham)
• Mayor Ariston Julian
Entertainment was provided by the Los Compass De Guadalupe.

Mayor Julian thanked the Los Amigos de Guadalupe Staff/Board, City Staff and Departments, Knights of Columbus (BBQ), Nicole Segovia, Steve Lavagnino 5th District Supervisor, Joan Hartman, 3rd District County Supervisor and the designers and contractors (Andrew Goodwin Design, Quincon Construction, Cannon Engineering in coordination with Public Works Director, Shannon Sweeney).

And, thanked to Council Member Liliana Cardenas who translated the itinerary for Spanish speaking attendees.

Joslynn Flowers Stated:
“Good evening, Mayor and council members
My name is Joslynn Flowers, I am a resident here in Guadalupe and have been a member of the community for 3 years.

Tonight, I come to you with a concern for the regarding the speed at which cars travel in a residential area specifically on Las Flores, Obispo Street, Arroyo Seco and Buena Vista Road.

There is no posting of the speed limit on Las Flores, and I live directly across the park and have witnessed numerous times people driving well over the speed limit of 25 sometimes closer to 50. I June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 3 of 20 have placed “slow down signs” and even yell at them to slow down as the speed pass as speeds that they would not be able to stop if there was an emergency and a reason to stop. The streets are not wide as it is and with cars along the sidewalk it could obstruct the view of the children playing.

I, along with other neighbors in my community believe speed humps are necessary for the streets with long straightway, such as the ones mentioned above.

I request that the city put this into action as it could be a life-or-death situation. I am not sure of the next steps, but I am more than willing to assist the council in any way I can to make sure this can happen in an appropriate time.

Please note, I am truly willing to work alongside the city to help in whatever capacity needed.

Thank You,”
George Danger Mack Stated:
“Mr. Mayor, Council, esteemed members of the public,
Thank for this time to speak, I do not use it lightly. I want to first off congratulate the City for a spectacular Le Roy park event this weekend. The turnout was exceptional. I wish I had been able to interact with you all on that day.

Tonight, is a big night in my book, because tomorrow you all will be making decisions that will affect people’s lives, their livelihoods, their families and the future of the City. I do not presume to know other battles, personal or public, but I do know that like you, the council, represent the people and their wishes, just as when I put on my fire department uniform, I am representing you. So tonight, should be a night of reflection.

Something happened today that made me pause and reflect personally. I was at the laundromat washing my clothes when a homeless man (I presume) walked in and began yelling obscenities at the patrons and dumping soap all over the floors. Well, the cops were immediately called, and 30 minutes later do you know who showed up? No one. Nobody ever came. The manager ended up kicking him out. This was in a city of 100,000 people so I imagine they had more pressing matters.

My point is this…
In three minutes when a Guadalupe resident calls 9-11, PD or Guadalupe Fire Department are there in an average of 3 minutes. Pd even responds to medical calls because of our low staffing. I stand tall side by side with my fellow first responders. We need to make it The truth is that staffing at the fire department is at an all-time low. When I started (as a volunteer) 14 years ago, we had 15 personnel with a daytime firefighter, Alice. Now we have 8. Two of which, Michael Ambrosio, and David Bonifacio are volunteers. How many more will we lose before somebody steps up and does the right thing? I hope none. The first step starts tomorrow. Guadalupe deserves an end to wasteful spending and start making the community Safer. Dissolve the Emergency Manager position and use that money to pay for a full-time fire chief who is trained to June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 4 of 20 do that job already! A Battalion Chief changes nothing. Guadalupe Deserves a Real Fire Department and a Real Fire Chief.

Thank you,”

Melanie Backer Stated:

“Dear Mayor, City Council, and everyone here:

I really want to thank you all for the very moving and stunning opening of Le Roy Park on Sunday. It was such a hopeful, special day — the Park and what everyone put into revitalizing it — really an amazing feat and such Memorial Day. All the work and planning that went into it, greatly appreciated. Such a special day!

In terms of keeping Guadalupe a safe place, a safe place for families, kids, teenagers, older people, all people and all animals, reckless driving has been happening in the Pasadera neighborhood. More people are moving into the neighborhood and people are driving faster, ignoring stop signs and they don’t know that the speed limit is 25 miles an hour.

Last Wednesday evening (June 8th at 10:30 a.m., on the corner of Buena Vista and Arroyo Secco, a truck was doing donuts and went up on the curb and almost hit a fence and then proceeded to drive incredibly fast up and down Arroyo Secco, several times disturbing neighbors. You can see the truck tire marks in the street at the corner of Buena Vista & Arroyo Secco, plus tire marks where the truck went up on the curb.

Then, last Thursday, early evening, on June 9th more cars and trucks were trying to speed on Arroyo Secco, neighbors went out and watched them, stared them down. Plus, on my street, Ladera Dr., last Thursday evening, 2 kids, not yet 16 were driving a car up and down the street incredibly fast.

We need speed bumps; we need a large police sign on Arroyo Secco saying the speed limit. We need Police and public safety and fireman too, to be the top priority of City. We don’t want any fatalities, and the way these people are driving, we will have one.

I was just in Los Angeles yesterday, Monday, and Brentwood has speed bumps everywhere. Why can’t we? Brentwood is not sued for having speed bumps.

The police should give out tickets to those speeding or driving recklessly. I got a speeding ticket on HWY 1 between Guadalupe and Orcutt the first month I moved here in November 2020. Best thing that happened to me because I had to take the online traffic course to not increase my insurance and I was reminded of rules I had not thought about for 30 years. For example, like the speed limit on a 2 lane HWY is 55 miles an hour. Residential 25 miles in the City of Guadalupe -is 35 miles an hour. Getting a speeding ticket made me a better, more prepared, and aware driver. Not a bad thing.

A priority for this town should be balance the budget and public safety next when speaking about the Order of the City Council priorities of goals for the next few years June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 5 of 20 With the goals of the City, isn’t it confusing? It Shouldn’t be 1.2. 3? IE: Budget first, public safety next then public parks — or do all three have the same priority? As they were discussing 1a., 1b., 1c.”
Shelia Marie C. Cepeda Stated:
“Good Evening, Mayor Julian and our distinguished City Council Members. My name is Sheila Marie Costa Cepeda. For those of you wondering, yes, Council Member Costa is my brother. Having grown up in Guadalupe, I love living in our small community.

I was surprised to see posted on the city’s website a public comment memo from a new resident in Pasadera regarding a Council Members previous position as a PCF volunteer with our fire department. That position was held more than 10 years ago. Having a Council Member who has worked in the fire department should be looked at as an asset. This gives some insight to those who are unfamiliar with the operations of the fire department.

It was also mentioned that using the $100,000 allocated for “Emergency Manager Coordinator, that grant money would be used to restore the fire chief position. We need someone who can devote their attention to researching and applying for grants. Grant writing is not an easy task and requires someone’s full attention. I took a grant writing class offered through Hancock and realized how much work was truly involved in the application process.

Has anyone considered diverting the overtime pay our fire fighters are earning and using that for either, a Battalion Chief, Fire Chief, or another position within the Department? Our City has paid $102,345 in overtime for the 2019/20 fiscal year and $209,699.43 year-to-date, per the Budget Report for calendar period 06/21 and FY 12/21. The 2019/20 figure was found in the 2021-2022 proposed budget posted on the city website. The Budget Report was received pursuant to my public records request. I’m sure some community members are not aware that some fire fighters received as much as 43-45% of their base salary in overtime pay. Is the overtime necessary? I truly believe if we pay this much in overtime, another position is needed. Let’s use these funds to fulfill that void.

Instead of making it seem as though the City Council is not in support of our Fire Department, let’s look at realistic ways to utilizing city funds for the better good of our community.

Thank you for your time.”
Denise Swangin Stated:

Hello, my name is Denise, and I am a resident of Pasadera. I have come before you to address some concerns I have with how the City is allocating our financial resources.

Police Department
a. I understand our Police Department is utilizing 41% of our budget. Whereas most cities utilize between 25-40%. Why are we using this much for our small City?
June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 6 of 20 b. I understand our Chief of Police position is also responsible for overseeing our Fire Department, with a salary that is compensated for this. This is an impossible task for today’s Chief position to take on with both Departments being successful. As we can see from the current position of our Fire Department, our needs are not being met. This may have been a successful merge years ago, but it is not effective today.

Fire Department
a. Our Fire Department utilizes 18% of our budget. This seems to be a pretty wide gap for our emergency personnel budget.
b. It is extremely clear we need better leadership for our Fire Personnel. We need an experienced Fire Chief to manage, supervise and train our fire staff. This position could also be used to secure grants to improve the current need of a new Fire Truck as well as improve overall wellbeing of the fire house.

City Administrator
I know our City Administrator has a huge responsibility; however, I feel a 20% pay increase is excessive. Are additional duties being added to this job to warrant the added pay incentives?
Parks and Recreation
a. I understand the Le Roy Park is a huge accomplishment for our city and we are grateful to have such a beautiful park.
b. I also understand that we are allocating an additional 20% increase to the Parks and Recreation Department. A new position is being recruited and a new truck is on the wish list. With all the money put into the park, weren’t nay of these items allocated for?
City Personnel
I understand we need to have dedicated personnel; however, I feel a COLA raise every year is not necessary. This encourages staff to promote and widen their horizons and growth. Also encourages new staff and new ideas to be brought in to enhance our growing city.

I am proud of our City and all the changes we have seen and will be seeing. I am proud of the choices we have made and excited for the years to come. However, I am concerned about the above-mentioned topics. When our emergency personnel are being compromised, I don’t feel we have adequate funds to use on other things that may jeopardized our lives and those visiting us. We need to hire a Fire Chief and the additional staff positions that are vacant.

Our Fire Department needs to have the resources to save our lives, our children’s lives, and our homes. We need to hire a Police Chief that manages his department effectively; without the burden of an entire additional department that is not in his line of experience.

Thank you for listening to me. I hope some of my points will be addressed and open for further discussion.”
June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 7 of 20 Simon Lopez Stated
“I am concerned with the people speeding in the Pasadera development. I believe speed bumps should be constructed to slow down the speeding vehicles.”

7. 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.

A. 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.

B. Approve payment of warrants for the period ending June 8, 2022.

C. Approve the Minutes of the City Council Regular Meeting of May 24, 2022, to be ordered filed.

D. Approve the City Council Special Meeting of May 31, 2022, to be ordered filed.

E. Adopt Second Reading of Ordinance No. 2022-501 adding Chapter 8.14 of the City of Guadalupe Municipal Code to implement AB 1276 Single-Use Foodware Accessories and Standard Condiments.

F. Accept the Mandatory Commercial Organics Recycling Requirements – for informational only.

G. Adopt Resolution No. 2022-45 approving new pedestrian bridge signage.

H. MONTHLY REPORTS FROM DEPARTMENT HEADS

1. Planning Department Report for May 2022

2. Building Department Report for May 2022

3. Public Works/Engineering Report for May 2022
Item #7C, 7D and 7G were pulled. Motion was made by Council Member Costa Jr. and seconded by Council Member Robles to approve the remainder of the Consent Calendar. 5-0 Motion passed.

Item #7.C. Mayor Julian said that a correction is needed to the May 24, 2022 minutes shown on page 11, third paragraph where by the first name needs to be changed from ‘Chausey’ to ‘Chachi.’ Item #7.C. Mayor Julian said that a correction is needed to the May 31, 2022 minutes shown on page 9, second paragraph, second sentence Royal Theater for about $20M $7M or $8M.

June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 8 of 20 Motion was made by Council Member Costa Jr. and seconded by Council Member Cardenas to approve Item #7C and #7D on the Consent Calendar. 5-0 Motion passed.

Item #7.G. Adopt Resolution No. 2022-43, initiating proceedings for the annual levy of assessments for the Pasadera Landscape and Lighting District for Fiscal Year 2022/2023 and Resolution No. 2022- 44, approving the Engineer’s Report for the Pasadera Landscape and Lighting District and declaring the City Council intent to levy assessments.

Motion was made by Council Member Costa Jr. and seconded by Council Member Cardenas to approve Item #7G on the Consent Calendar. Council Member Ramirez recused himself: Ayes: 4. 1 Recusal: 4-1 Motion passed.

8. CITY ADMINISTRATOR REPORT: (Information Only)
The City Administrator highlighted the following items:
• W. Main St. Water Main Replacement started June 13 and is scheduled to be completed the first week of July. This project involves replacing a 4-inch water main with a 12-inch water main. Expect short delays and possible detours for the duration of this project. • Fifth Street – Southern California Gas Company replaced a gas main on 5th Street just before the 2021 Sewer Trunk Main Improvement Project. The contractor left the street in poor condition. They have returned and made repairs.
• The O'Connell Park play structure installation was completed on June 6. • The City is still on track for new bus service starting July 1. On July 1, shuttle service will be discontinued. In its place will be a local fixed route that runs every half hour to all stops in Guadalupe and an express route that runs hourly from the Amtrak station to the Santa Maria transit station. Both routes will meet at the bottom of the hour at the Amtrak station. New schedules are available at the Finance Department.

9. DIRECTOR OF PUBLIC SAFETY REPORT: (Information Only) The Director of Public Safety Michael Cash stated that on Tuesday, May 24, 2022, during the “Community Participation Forum” of the Guadalupe City Council Meeting, Robert and Teresa Doty and Joslynn and Sheldon Flowers publicly commented and submitted written comments regarding their support for the Guadalupe Fire Department. They asked for a written response to their questions. Below are his responses:

First, I wish to thank and commend our citizens of Guadalupe for not only attending our City Council meeting but commenting and supporting our Fire Department. Your community participation is much appreciated by not only our city employees but by our community residents.

June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 9 of 20 I listened to your public comments and read your letters that you sent into the city. I want you to know and understand my responses will be and can only be based on information not rumors or innuendos.

Chief cash read the following letters and responded:

LETTER FROM
Robert and Teresa Doty
Guadalupe, CA 93434
My wife and I are writing you today about a grave concern of ours. That is our Guadalupe Fire Department. As citizens of our community, it has been brought to our attention that our members of the fire department are being threatened with massive pay cuts, having to give up their overtime limits in violation of the Fair Labor Standards Act (FSLA) and attempts to change their work schedule to favor the city while having to work half days, sporadic shifts with the threat hanging over their heads so “OR ELSE”. Our firefighters have faced harassment at the workplace, retaliation, investigations, and have no representation. They are literally fighting to keep their jobs.
a. Factual Information – The firefighters’ negotiated base salaries are not being affected. There is no pay cut. The issue is excessive overtime usage. Overtime is allocated at the discretion of management for use to address unforeseen circumstances not as a part of their regular pay. The department is budgeted yearly with a set amount of overtime dollars to address emergencies and unforeseen incidents. The yearly budgeting by the Director of Public Safety is to address and decrease unnecessary and excessive overtime expenditures and to use the funding in other areas of the department and city to improve the department and its operations. b. Factual Information – The Director of Public Safety has explored additional work schedules to better utilize personnel, improve firefighter safety by resting our employees, provide better service to our citizens, and decrease cost to city taxpayers. c. Factual Information – As the City of Guadalupe and the Department of Public Safety do not discuss individual personnel investigations and discipline, general, nonidentifying, specific public information can be provided. Members of the Fire Department did have an outside individual file a complaint of harassment in the workplace, retaliation, and investigations lodged against Fire Department employees. An outside investigative agency conducted several investigations of Fire Department employee misconduct for impartiality reasons.

Under YOUR direction, the city has stated that they are fine with downgrading our fire department to volunteer status. if this were to happen, lives will be lost due to vastly June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 10 of 20 increased first responder response times from surrounding agencies. This is simply not acceptable. As a 36-year veteran (retired) fire captain of a very large fire department near here, I can personally state that volunteer fire departments in the western USA simply do NOT WORK. During the normal M-F workday you will rarely see a response from volunteers.

Same with nights. Same with weekends. That is why the trend statewide is to disband all volunteer and go to full time paid professional. Not to mention the level of training, care, and professionalism you receive. Anyone can jump in and drive a vehicle to an emergency scene, but the care stops there when comparing full time paid, highly trained, and certified, sworn fire personnel vs volunteer who have limited training. WE ARE NOT FINE WITH THIS CARELESS DECISION OR THREAT from this council to disband and switch to volunteer status.

Lives and property will be lost and also all homeowners insurance rates will skyrocket. It all comes down to the simple fact that quick response times, and trained professionals save lives! We will not have that with volunteer firefighters! a. Factual Information – I have never presented and or provided information to the Mayor and City Council about the option of reverting the full-time Fire Department to its former status of a “Volunteer Fire Department”. The option of reverting to a volunteer fire department is an option that I would be remiss not to present along with other options if I were asked. Any decision by City Council would include community input.
b. Factual Information – The Mayor and City Council in the past four (4) years has authorized and funded a 100% increase in staffing for the Fire Department. The Director of Public Safety was authorized to not backfill a police officer position and transfer the budgeted monies to increase staffing for the Fire Department by hiring three (3) new Fire Engineers.
c. Factual Information – The Guadalupe Department of Public Safety has the fastest dispatch response times of any “First Responder” agency in the County of Santa Barbara. This fact is due to the unique working relationship between police and fire.

The police department is usually the first, First Responder to arrive for citizen aid. This relationship produces the quickest response times in the county. d. Factual Information – The Guadalupe Department of Public Safety is similar in the staffing model of the Sunnyvale Department of Public Safety. Sunnyvale, with a population of 150,000, is considered one of the safest cities in California and its personnel are crossed trained to provide the best First Responder service to its community. Under the direction of a Public Safety Director, Police, Fire, and EMT services are provided in a seamless response to residents. Budgets are shared, training is optimized, and critical response times are low.

It has also been brought to our attention that the city is going through the hiring process and creating a new “emergency manager- grant money coordinator” position or something along June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 11 of 20 those lines. From what I also understand, this position would be well north of $100,000 in salary. I ask, would it not be better served to restore the fire chief position and give him or her the added responsibility of pursuing all the federal grants that are out there? Has there ever been an attempt by the city to obtain any grant money in support of our fire department? Starting with new equipment such as a new fire engine to replace the 22-yearold front line engine and a new fire station for our firefighters? Also, I am aware that our fire department sends crews out on strike teams as mutual aid to the state during fire season.

What happens to the “6% admin fee” fund acquired for these services? Have any of you visited our “fire station” recently? To say we need upgrading is an understatement and needs to be addressed. Do we have a fund in place to replace old worn-out equipment? What are your future plans? Is ANYTHING along these lines budgeted? a. Factual Information – The Emergency Preparedness Coordinator, position is a fulltime position specifically dedicated to emergency management. My training and experience, prior Emergency Manager experience, Chief of Police experience, and experience as a Director of Public Safety, the position of Emergency Coordinator is more urgently needed in the City of Guadalupe than a Fire Chief or a Fire Battalion Chief. The duties and responsibilities of this position would not allow time for a Fire Chief or Fire Battalion Chief to do their assigned duties of supervising personnel and administratively managing a Fire Department. No Fire Chief in the County of Santa Barbara double duties as an Emergency Preparedness Manager. The position of Emergency Managers is spread throughout Santa Barbara County by separate agencies including some Fire Departments. The Santa Barbara County Office of Emergency Management is a separate agency that is the lead for the county. They are not attached to or run by the Fire Department.
b. Factual Information – On the issue of pursuing grants, in the past four (4) years, the Department of Public Safety has pursued and obtained grants each year for fire equipment. One Fire Captain, the prior Emergency Preparedness Coordinator, and the Director of Public Safety have located, written, and obtained grant funding for the Fire Department the past four (4) years. The grants have allowed the department to purchase and obtained equipment that had not been previously identified through the yearly budget process. Pursuing grants are time consuming, labor intensive, and needing an expertise of knowing and understanding the grant writing process.

1. 2019 Cal State Firefighters’ Association Scholarship Grant - $8,762

2. 2019 Cal Fire, VFA (Volunteer Fire Assistance) Grant - $5,197

3. 2020 Cal Fire, VFA Grant - $13,507

4. 2021 Rural Fire Capacity Grant - $15,782

5. 2021 One805, Santa Barbara County Grant - $7,000

6. 2022 Federal Assistance to Firefighter Grant - $20,500 June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 12 of 20 e. Factual Information – The Director of Public Safety has identified the need and funding source to replace the ageing 22-year-old fire engine. The estimated purchasing cost has been identified as approximately $600,000 to $800,000 to purchase and equip a fully loaded fire engine. California Proposition 172 funding, “The Public Safety Augmentation Fund”, is specifically being saved to purchase a fire engine as not to adversely affect the General Fund to assist other city departments. f. $20,000 dollars of Proposition 172 funding was recently made available, Fiscal Year 2022, to retrofit the “Type 6 - Wildland Fire Vehicle” utility bed to better prepare the department to respond to state mutual aid assistance requests. The Director of Public Safety and a Fire Captain completed and approved the five (5) year, “2020-2025 – Fire Equipment Replacement Plan”. The list has identified 39 separate pieces of equipment. Currently, we are behind on the replacement schedule for only one (1) item, the “light box flashlights” for the fire engine.
g. The Fire Department station is currently the most recent remolded and up to date office space within City Hall. The kitchen area and office space were newly remodeled in 2021. The grand opening was attended by the mayor and Director of Public Safety.

The City Council allotted $5,000 dollars funding to complete this project. The remodeling of the new fire sleeping quarters is currently on hold as the City Council directed emergency funding to repair the faulty electrical system, build a female locker room, repair the roof, and restore
running water within the police department.

With the addition of the Pasadera tract to the city along with the additional tax revenue that comes with it, why are we even having this discussion of lack of funding or cutting of services…. especially when it comes to our public safety. When Pasadera was approved many years ago, it was supposed to SAVE the city.

My advice to all of you:

1. CEASE AND DESIST the harassment of our firefighters. I’m sure there are many civil attorneys out there that would lick their chops at the chance to go after the deep pockets of a city jurisdiction.

2. Change the recruitment and job of the so called newly created position of emergency manager to Fire Chief and federal grant coordinator and let them do their job of bettering our fire department and city services.

3. Do not even consider downgrading our fire department to volunteer…. this is not acceptable, and lives will be lost.

June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 13 of 20 In closing, it is obvious to us that what the fire department needs in this city is an advocate and someone to represent them. This will ensure that the citizens of this community will be safely taken care of.

LETTER FROM
Joslynn and Sheldon Flowers
Guadalupe, CA 93434
Thank you again for allowing me the opportunity to speak tonight please see below for what I said, as I know you had requested that I send you an email, so you were personally able to answer the questions.

Good evening, Mayor, and Council Members
My name is Joslynn Flowers, I am a resident here in Guadalupe and have been a member of the community for 3 years.

I am here tonight not to make accusations or read off a heated statement. I am here tonight to ask questions to which I am hopeful you will be willing to provide me with truthful and clear answers.

I am very aware there are two sides to every story and perhaps some information that we, the community, are not privy to since we are not a part of the council.

However, in situations like these I find myself not placing blame but questioning why. Why, if a city's FD is asking for a chief to support them in their role and to speak on their behalf are we, or shall I say the city denying it?
Is it due to city funding?
If that is the case, where are the funds from the builders’ tax from Pasadera community? Is that not a thing? Are there not grant funding available? Surely there must be, especially since I know there have been many other grants available to this community in the last few years.

Is it since there will be someone who will then be speaking up on their behalf? Perhaps holding the city accountable to make sure all PPE and equipment are up to code, to help them do their job to the best of their abilities?
I am also hoping you can shed some clarity on a more serious issue- that being the accusation made regarding the firefighters being pushed to leave and “create a volunteer-based FD, as a city-wide cost saving measure.”
I question, at what cost? Community members waiting additional time if in a life-or-death emergency. A volunteer FD may work in an extremely small town but how much have a grown in the last 5 years, and we are still growing. So where does that leave us? Hoping Cal Fire up June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 14 of 20 the way isn’t on their own call when we need them? Hoping that in an emergency we, the city of Guadalupe, don’t become an afterthought!
Perhaps this has all been “exaggerated or misinterpreted-spread like a wildfire” if you will.

Maybe this is an ongoing thing, history from 6-7 years ago and I am missing the facts because I am new to town, but it seems to me that maybe the issue is the lack of transparency and clarity to the community.

What I am clear on is that the FD are the first to show up in an emergency and deserve to be treated as such. If statements such as “you need to take a pay cut”, “you need to work less overtime” and “dismantling the FD” are true, we are on a fast track to serious issues in this community as we continue to grow.

It can’t be both ways council members, you can’t approve more growth of a community without the growth of vital components to keep this community safe.

I am requesting a written response to these questions I have asked tonight. I look forward to hearing from you all.

Thank you again,

10. MAYOR’S REPORT- UPDATES
Mayor Julian asked if there were any questions about the written Mayor’s report, please feel free to ask. No one asked for any clarification.

REGULAR BUSINESS

11. Adoption of Goals to Guide the Fiscal Year 2022-23 Budget.

Written report: Robert Perrault, Facilitator
Recommendation: That the City Council receive the results of the survey, entertain further public comment, revise the draft goals as may be necessary and then adopt Resolution No. 2022-46 approving the goals for completion of budget development.

After a brief overview from Facilitator Mr. Robert Perrault, the City Council made some clarifying modifications to the original Council goals after reviewing the community goals. The amendments will read as follows:

June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 15 of 20 -Review revenue generation options for General Fund including possible Transient Occupancy Tax increase.
- Provide staffing and complete implementation of new finance software program. -Develop and provide for Council review a quarterly report on City finances and goal progress. 1a. Continue to develop and grow the Recreation Department by providing sustainable programs and facilities for the Community.
- Adequately fund and allocate staff for Recreation and Parks Department including a permanent recreation manager and maintenance positions
- Develop facilities master plan for current park improvement and maintenance of existing parks and those in the pipeline
- Increase recreational programming for use of facilities utilizing community priorities and coordinating with recreation/sports entities
1b. Ensure Public Safety staffing and facilities are sufficient to maintain the delivery of quality Public safety services to the community.
- Complete the implementation of a staffing plan for both Fire and Police including the addition of a Battalion Chief in the Fire Department as budget permits across the board - Continue to update facilities and equipment as budget permits 1c. Ensure that Public Facilities and Infrastructure (streets, water, wastewater) are capable of Meeting current and future needs of the city
- Continue to maintain and update facility master plans including streets wastewater, water, and Capital Improvement Plan.
- Prioritize City facilities in urgent need of City repair and identify costs and timing for all municipal facilities including the library
- Seek grant funding to assist with the above
- Develop and implement an adequate staffing plan for the Department of Public Works 1d. Ensure that American Recovery and Reinvestment Act (ARRA) funds are maximized to ensure That initially funded staffing and services are met and where feasible converted to General Support
- Revisit ARRA line items to ensure that the allocation of funds to needed positions and services is justifiable and achieves goals set by City Council.
- On a quarterly basis, revisit the items supported by ARRA in comparison to quarterly expenses and revenues for the entire city budget.
- Require justification of the remaining ARRA budget items requested to ensure allocation amount and intent are realized
June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 16 of 20

2. Create and implement economic development strategies for the city of Guadalupe that will promote the development and maintenance of a strong business sector including business retention, attraction, tourism marketing, and revenue generation.
- Work cooperatively with the Guadalupe Business Association to identify a strategy for business retention and attraction.
- Identify and apply for grant funding for the creation and Staffing of a business support program

3. Support the efforts to attract businesses to Pasadera Commercial Area to help, create employment opportunities, provide local services identified by Residents and generate tax revenue.

- Develop a team comprised of a council member, planning staff, City Administrator, and consultants to support project proponents in their efforts to attract potential businesses to the commercial Area.
- Advocate for the completion of the necessary infrastructure to support the development of the commercial area using communication between CalTrans, Santa Barbara County Association of Governments (SBCAG), the City’s Development Team, and DJ Farms.

4. Coordinate with Santa Barbara County Parks Master Plan to acquire property adjacent or near Guadalupe for Camping and recreational facilities. - Establish a core team to include city council representation, city staff, and existing business groups, who will collaborate with Santa Barbara County Parks Department in developing the Santa Barbara County Park Master plan.
- City representatives will include the City Administrator, Public Works Department, Recreation Department, city council representative, and a representative of the business community.

5. Develop and implement a communication strategy focused on improving flow of information between constituents, city staff and Council members.

- Cultivate a relationship with community-based organizations to disseminate information - Develop and implement social media policies for the City - Increase the usage of Zoom to broadcast City Council meetings

Mr. Perrault suggested that the goals between the Council and the City be synthesized in a final goal statement and resolution for consideration under the consent calendar at the June 28, 2022 City Council meeting.

12. Urban Drought Response.

Written report: Shannon Sweeney, Public Works Director/City Engineer Recommendation: That the City Council provide guidance to City staff on actions to address current local and statewide water conditions.

June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 17 of 20 Shannon Sweeney, Public Works Director provided information about the current local and statewide water conditions. Afterwards, there were several questions comments from the City Council, City Staff, and the Citizenry for which guidance was stated.

Mayor Julian understands from Ms. Sweeney that the water supply levels are decreasing and mentioned there are various golf courses designating certain course areas to start a pilot project on drought resistance watering methods. Mayor Julian asked if the water use calculation comparisons percentage ratio of 60 to 90 gallons per person/per day are calculated once the commercial property is removed? Ms. Sweeney stated that it is data from residential only.

Council Member Ramirez inquired about turf replacement for businesses and would likes the idea of sensing devices to maximize water usage and if there is a way to find a nexus for nonfunctional turf for commercial properties.

Council Member Robles stated that City staff needs to develop a flyer to be mailed out with the utility bill to educate the citizenry about water saving tips.

Ms. Shirley Boydstun asked if the new trees being planted are on a drip system. Ms. Sweeney stated that they are on drip systems.

Below are summary responses from Council questions about urban drought:
• Sweeney let Council know that the State Water Resources Control Board passed emergency regulations prohibiting nonfunctional turf for commercial, industrial, and institutional properties, but that these regulations do not apply to us because we do not meet the definition of Urban Water Supplier.
• Sweeney shared that our groundwater levels are remaining steady, but that the water supply for the last 10 years has been less than the long-term average. • Sweeney provided several alternatives for addressing current conditions. • Council requested that Sweeney resubmit the flyer to our customers in a water bill insert, that code compliance educate the public when violations of our water wastage ordinance occur, that I add information about not watering during the afternoon to the water bill insert, and that Sweeney continue working with the County on being part of the potential turf rebate grant, with matching funds provided out of the enterprise fund. • Council is interested in water sensors for our irrigation systems in our parks, and perhaps converting a portion of our City Hall landscaping to drought tolerant vegetation if budget allows, and especially if Sweeney can find nexus to paying for it out of enterprise fund.

June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 18 of 20

13. Introduction of an ordinance of the City of Guadalupe, California, amending portions of Chapter

3.20 of Title 3 of the Guadalupe Municipal Code related to Transient Occupancy Tax to increase the tax rate from 6% to 10% as well as increase the types of occupancy categories subject to the tax.

Written report: Philip F. Sinco, City
Recommendation: That the City Council introduce, for the first reading, and continue to the next meeting for second reading and adoption, an ordinance to increase the transient occupancy tax rate from 6% to 10% as well as increase the types of occupancy categories subject to the tax to specifically include short-term rentals, RV parks, and campground.

After Mr. Sinco provided his overview of the first reading to the Ordinance, a note was read out loud from Ms. Shirley Boydstun’ stating, “The amending of the Municipal Code (Chapter 3.20 Title 3) expected to raise $20,000 to $30,000 annually by changing the TOT tax rate from 6% to 10% is commendable as is the change in Hotel to more inclusive lodging. But a large portion of the newly anticipated revenue has been lost by the costs of making this change due to staff time, attorney time and printing, that could have been avoided had the Council listened to the small voices—not the loud ones---saying that 10% TOT has been standard for many years as noted in the survey of neighboring cities, and in place at the time of the setting the rate originally. It usually is good to look to the future in planning potential revenue sources.”
Motion was made by Council Member Ramirez and seconded by Council Member Cardenas for the first reading for an ordinance to increase the transient occupancy tax rate from 6% to 10% as well as increase the types of occupancy categories subject to the tax. Ayes: 5-0 motion passed.

14. Calling and Giving Notice of the General Municipal Election to be held on November 8, 2022, and consideration of submitting to the Voters a Measure to increase the Transient Occupancy Tax Rate from 6% to 10% and increase the types of occupancy categories subject to the Tax.

Written Report: Philip Sinco, City Attorney
Recommendation: That the City Council adopt the following resolutions required in conjunction with the general municipal election to be held on November 8, 2022, and submission to the voters a measure to increase the transient occupancy tax rate from 6% to 10% as well as increase the types of occupancy categories subject to the tax to specifically include short-term rentals, RV parks, and campgrounds:
• Resolution No. 2022-47 calling and giving notice for the holding of a general municipal election on November 8, 2022, for the election of certain officers as required by the provisions of the law of the State of California, and for submission to the voters for approval of a question relating to the increase of the local transient occupancy tax from 6% to 10% until ended by the voters, as well as increase the types of occupancy categories subject to the tax to specifically include short-term rentals, RV parks, and campgrounds; and
June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 19 of 20 • Resolution No. 2022-48 requesting that the Board of Supervisors consolidate the City’s general municipal election with the statewide general election and requesting services from the County for election of the Mayor, two Council members, and the City Treasurer, and submission to the voters for approval of a question relating to the increase of the local transient occupancy tax from 6% to 10% until ended by the voters as well as increase the types of occupancy categories subject to the tax to specifically include short-term rentals, RV parks, and campgrounds; and
• Resolution No. 2022-49 establishing regulations for candidates’ statements; and • Resolution No. 2022-50 setting priority to the City Council for filing a written argument in favor of the measure relating to the increase of the local transient occupancy tax from 6% to 10% until ended by the voters as well as increase the types of occupancy categories subject to the tax to specifically include short-term rentals, RV parks, and campgrounds, and directing the City Attorney to prepare an impartial analysis.
• Resolution No. 2022-51 providing for the filing of rebuttal arguments.

Motion was made by Council Member Ramirez and seconded by Council Member Costa Jr. to approve the above Resolution (s) Nos. 2022-47, 2022-48, 2022-49, 2022-50 and 2022-51. Ayes: 5- 0 Motion passed.

Motion was made by Council Member Cardenas and seconded by Council Member Costa Jr. to authorize Mayor Julian to work with staff on a written argument in favor of the measure relating to the increase of the local transient occupancy tax from 6% to 10% until ended by the voters as well as increase the types of occupancy categories subject to the tax specifically include shortterm rentals, RV parks and campgrounds. Ayes: 5-0 motion passed.

15. FUTURE AGENDA ITEMS
The City Council and Staff listed none.

16. ANNOUNCEMENTS – COUNCIL ACTIVITY/COMMITTEE REPORTS
Council Member Ramirez: Ramirez asked how the task force is coming on graffiti? Are we going to redirect code compliance by complaints, and is there a procedure in place and a community meeting advancing? Public Safety Director Michael Cash stated that they are not going to be handling code compliance solely on a complaint basis, but we will be more proactive.

Council Member Robles: Robles said it was fun playing volleyball during open gym last Wednesday.

He also noted that there are six games of basketball scheduled for open gym at in the Auditorium from 5 to 7 p.m.

June 14, 2022 City of Guadalupe Council Meeting MINUTES Page 20 of 20 Council Member Robles also stated his concerns about speeding all over the City not just in Pasadera.

There is a new generation of drivers today, running stop signs.

Council Member Costa Jr.: Costa Jr. Participated in last Thursday’s first softball matches and said it was very enjoyable.

Council Member Cardenas: Cardenas said she is so thankful for the playground structure at Jack O’Connell Park.

17. ADJOURNMENT
Motion was made by Council Member Cardenas and seconded by Council Member Costa Jr. to adjourn. 5-0 Motion passed. Meeting adjourned at 8:26 p.m.

Prepared by: Approved by:
___________________________________ ______________________________________ Todd Bodem, Deputy City Clerk Ariston Julian, Mayor

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CITY OF GUADALUPE GOAL STATEMENT FY 22/23
City Council Ranked Priorities

1. Develop and maintain a balanced budget for FY 22-23 Budget providing priority municipal services and securing the City’s financial future with adequate reserve funds. - Identify and allocate funds to be used to meet the General Fund Reserve Goal of 15% - Implement a monitoring program to ensure contracted cannabis Commitments are met. - Review revenue generation options for General Fund including possible Transient Occupancy Tax increase.
- Provide staffing and complete implementation of new finance software program. - Develop and provide for Council review a quarterly report on City finances and goal progress. 1a. Continue to develop and grow the Recreation Department by providing sustainable programs and facilities for the Community.
- Adequately fund and allocate staff for Recreation and Parks Department including a permanent recreation manager and maintenance positions
- Develop a facilities master plan for current park improvement and maintenance of existing parks and those in the pipeline
- Increase recreational programming for use of facilities utilizing community priorities and coordinating with recreation/sports entities
1b. Ensure Public Safety staffing and facilities are sufficient to maintain the delivery of quality public safety services to the community.
- Complete the implementation of a staffing plan for both Fire and Police including the addition of a Battalion Chief in the Fire Department as budget permits across the board - Continue to update facilities and equipment as budget permits 1c. Ensure that Public Facilities and Infrastructure (streets, water, wastewater) are capable of Meeting current and future needs of the City
- Continue to maintain and update facility master plans including streets wastewater, water, and Capital Improvement Plan.
- Prioritize City facilities in urgent need of City repair and identify costs and timing for all municipal facilities including the library
- Seek grant funding to assist with the above
- Develop and implement an adequate staffing plan for the Department of Public Works Agenda Item No. 6D

Page 2 of 2 ends

1d. Ensure that American Recovery and Reinvestment Act (ARRA) funds are maximized to ensure that initially funded staffing and services are met and where feasible converted to Genera Support
- Revisit ARRA line items to ensure that the allocation of funds to needed positions and services is justifiable and achieves goals set by City Council. - On a quarterly basis, revisit the items supported by ARRA in comparison to quarterly expenses and revenues for the entire city budget.
- Require justification of the remaining ARRA budget items requested to ensure allocation amount and intent are realized

2. Create and implement economic development strategies for the city of Guadalupe that will promote the development and maintenance of a strong business sector including business retention, attraction, tourism marketing, and revenue generation. - Work cooperatively with the Guadalupe Business Association to identify a strategy for business retention and attraction.
- Identify and apply for grant funding for the creation and - Staffing of a business support program

3. Support the efforts to attract businesses to Pasadera Commercial Area to help, create employment opportunities, provide local services identified by Residents and generate tax revenue.
- Develop a team comprised of a council member, planning staff, City Administrator and consultants to support project proponents in their efforts to attract potential businesses to the commercial Area.
- Advocate for the completion of the necessary infrastructure to support the development of the commercial area using communication between CalTrans, Santa Barbara County Association of Governments (SBCAG), the City’s Development Team, and DJ Farms.

5. Develop and implement a communication strategy focused on improving flow of information between constituents, city staff and Council members.
- Cultivate a relationship with community-based organizations to disseminate information - Develop and implement social media policies for the City - Increase the usage of Zoom to broadcast City Council meetings

Page 1 of 2 ends

RESOLUTION NO. 2022-46

A RESOLUTION OF THE CITY COUNCIL OF THE CITY GUADALUPE APPROVING THE GOAL STATEMENT CONTAINING GOALS TO BE USED IN THE FISCAL YEAR 2022-23 BUDGET PROCESS WHEREAS, the City Council has undertaken the budget development process for FY 2022-23; and WHEREAS, the City Council recognizes the importance of completing a Goal Setting Process in order to guide the development of the FY 2022-23 Budget; and
WHEREAS, the City Council has retained a facilitator to assist with the process and received various reports and presentations regarding the current status of the City; and WHEREAS, the City Council drafted and completed a list of candidate goals and solicited public comments on the candidate goals; and
WHEREAS, the City Council has reviewed the public process and completed a ranking of the candidate Goals; and
WHEREAS, the City Council has reviewed the ranking of Goals and based on the ranking completed the attached Goal Statement containing a prioritized list of goals to guide the development FY 2022-23 Budget.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Guadalupe as follows:

1. The Goal Statement containing a prioritized listing of goals, attached hereto and incorporated by reference is hereby approved; and

2. The City Administrator is hereby directed to use the Goals to prepare the FY 2022-23 Budget.

3. The City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the City Clerk shall consult with the City Administrator and City Attorney concerning any changes deemed necessary.

PASSED, APPROVED AND ADOPTED at a regular meeting on the 28th day of June 2022 by the following vote:

MOTION:

AYES:

NOES:

ABSENT:

ABSTAIN:

Page 2 of 2 ends

I, Amelia M. Villegas, City Clerk of the City of Guadalupe DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2022-46, has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held June 28, 2022 and that same was approved and adopted.

ATTEST:
______________________________ ____________________________________ Amelia M. Villegas, City Clerk Ariston Julian, Mayor
APPROVED AS TO FORM:
______________________________
Philip F. Sinco, City Attorney

Page 1 of 1 ends

Agenda Item No. 6E

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of June 28, 2022

_______________________________ _________________________________ Prepared by: Approved by:

Lorena Zarate, Finance Director Todd Bodem, City Administrator SUBJECT: May 2022 Financial Report
RECOMMENDATION:

That the City Council accept the May 2022 Financial Report DISCUSSION:

The Finance Department has prepared a Financial Report for the fiscal year 2021-2022 through May 2022 for the Council’s and the public’s information. Attached hereto as Attachment No. 1 is the Report. Staff requests that the City Council accept this report for its information.

ATTACHMENTS:

1. May 2022 Financial Report
Lorena Zarate

Page 1 of 7 ends

City of Guadalupe
Financial Report
Fiscal Year 2021-22 through May 2022
Overview
The fiscal year 2021-22 financial report concentrates on the General Fund and Water/Wastewater Enterprise Fundsthrough May 2022, or 92 percent of the year expended. The purpose of the report is to provide a status of cash, fund balance and budgeted Revenue and Expenditures versus actual at 92 percent of the fiscal year expended.

General Fund Cash
Total cash as of May 31st, 2022, was $542,830.11. For comparison, the cash balance for May 2021 was $298,448.76.

General Fund Revenue
Actual revenue received through May 31st, 2022, compared to the amended budgeted revenue shows the General Fund below target 85.5 percent of expected revenues as compared to 92% for 11 months expended through the year.

The tables below show General Fund revenue by category. Highlighted in yellow are specific revenue categories that have fallen short as compared to the budget through May 2022. In regard to sales tax revenue, Staff has engaged HDL to provide a more updated projections for this fiscal year. An analysis was provided by HDL on April 22nd that shows that the total expected sales tax revenue for the City is projected to be $538,850 plus $686,697 for Measure N for a total of $1,225,547 for the current fiscal year. This represents $85,798 shortfall from the originally budgeted amount of $1,311,345.

ATTACHMENT 1

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Staff has also engaged HDL to provide projections related to projected property tax revenue. HDL provided an analysis dated May 4th and based on this analysis we may receive more than we originally budgeted in property tax revenue. It is estimated that the City would receive approximately $1,583,969, which is approximately $34,000 more than what was originally budgeted for. Property tax revenue in the amount of $141,906 was received at the end of April and we are expecting the remainder in June 2022.

In regards to franchise fees, currently these appear with budget. The City received funds from SoCal and PGE in April. In March, Staff was informed from Waste Management that they had made a mistake in their franchise fees to the City, in which the City was getting overpaid from September 2019 to October 2021, totaling $88,274. The impact of this error would most likely be reflected for next several fiscal years as Waste Management will be proposing options to recoup the overpayment without immediate impact to the City or customers.

In regards to building permitting fees, currently these appear slightly under budget. Pasadera has permitted out 65 lots instead of the 53 lots expected. Escalante Meadows has not permitted out and does not plan to before the end of June 2022, per correspondence in April. At the end of June 2022, it is estimated that total building revenue would be under budget.

In regards to revenue from transfers, the General Fund has received $187,919 from ARPA to fund various costs that are summarized in Exhibit A. Transfer revenue from the Successor Agency for administrative costs was originally budgeted at $165,000. However, the Department of Finance only approved $140,557 with the ROPS as the remediation project is close to being finalized.

The Other Revenue category includes cannabis application fees received in the amount of $63,000, and airport and SRO revenue, among other miscellaneous revenue, as shown in the graphic below. The City received the Chevron grant of $90,000 in early May and a reimbursement from the LEAP grant in the amount of $74,138 is in process for the general plan update. Total LEAP Grant for the General Plan update is $160,000 plus $65,000 for the environmental portion; total REAP Grant for offsetting planning expenses is $104,000.

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Category Budget Actual %
Property Tax 1,575,000 1,525,766 96.9%
Transfers from other funds 1,216,106 946,775 77.9%
Sales Tax 1,311,345 971,415 74.1%
Utility Users Tax 450,000 410,656 91.3%
Building Permit & Planning 537,930 476,188 88.5%
Business License 272,000 260,343 95.7%
Franchise Fees 260,000 252,173 97.0%
COPS Grant 166,000 159,577 96.1%
Rental of Property 100,000 107,463 107.5%
Administrative Overhead 82,471 78,141 94.7%
Other 1,095,357 853,064 77.9%
Total Revenue 7,066,209 6,041,562 85.5%
Gen. Fund Revenue by Category
Other Revenue Budget Actual %
Dividends 1,600 1,383 86.4%
Other Lic/Permits 28,230 31,819 112.7%
Over counter plan chk 14,682 16,834 114.7%
Cannabis App Fee 63,000 63,000 100.0%
Criminal Fines 300 126 42.1%
Other Fines 5,000 5,485 109.7%
Other Gov Grants 5,100 9,642 189.1%
Vehicle Anti Theft 3,978 3,016 75.8%
LEAP/REAP Grants 290,509 78,637 27.1%
Grading Permit 900 250 27.8%
Public Impr Plan Chk 500 - 0.0%
Plans & Specs 21,300 28,574 134.2%
AMR Fire 238,678 242,199 101.5%
Other Permit 3,200 1,714 53.5%
Other Service Chages 500 100 20.0%
Chevron 90,000 90,000 100.0%
Interest Inc 5,000 712 14.2%
Investment Inc (12,000) - 0.0%
Misc Inc 1,500 817 54.5%
Cash Over/Short - 3 #DIV/0!
SRO 53,915 44,460 82.5%
rev from other agencies 264,465 224,750 85.0%
Misc Rev Police 15,000 9,545 63.6%
1,095,357 853,064 77.9%

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General Fund Expenditures
Expenditures are currently under budget at 83 percent expended as compared to the amended budget. The Table and Chart below shows all General Fund Departments and spending trends as of May 31st, 2022. All departments are within budget through May 2022, except for the unexpected cannabis fees that were paid recently. Overall, expenditures for the General Fund are lower than revenues by $368,543 through May 2022.

General Fund Balance
The term fund balance is used to describe the net position of governmental funds calculated in accordance with generally accepted accounting principles (GAAP). It is intended to serve as a measure of the financial resources available to the fund. Fund balance represents the total amount accumulated in the fund from prior years at a point in time. The fund balance in the General Fund as of May 31st, 2022 is a positive $738,899.26. The graph below shows the upward trend through the past several years. As shown in the visual below, the fund balance at the end of May 2021 was $219,375 for comparison. A priority for City is to continue to increase the fund balance enough to establish a reserve of a minimum of 15% of the General Fund operating budget, which is $1,037,171.

DEPARTMENT NAME Amended Budget Actual Spent as of
5/31/2022 92%
City Council 15,070 11,477 76%
Administration 487,530 428,652 88%
City Attorney 120,000 101,155 84%
Finance 548,475 445,674 81%
Non Departmental 548,587 412,446 75%
Building Maintenance 325,723 202,345 62%
Police 2,744,346 2,409,268 88%
Fire 1,338,000 1,165,965 87%
Parks & Rec 326,099 217,703 67%
Building and Safety 284,060 214,043 75%
Cannabis 57,587 64,290 112%
TOTAL ALL DEPARTMENTS: 6,795,477 5,673,018 83%
2021-22 GENERAL FUND EXPENDITURES

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ENTERPRISE FUNDS – WATER AND WASTEWATER
The Statement of Revenues and Expenditures through May of fiscal year 2021-22 is shown in the Table below.

The following charts compare budget to actual Revenue and Expense:

Water Wastewater

REVENUES
Charges for Services 2,156,953 1,667,384
Interest 4,255 5,003
Other 87,844 164,537
Connection Fees 39,489 14,821
Developer Fees 89,250 281,250
Total 2,377,791 2,132,995

EXPENSES
Operating 1,014,938 1,085,460
Capital 6,613 1,733,946
Depreciation - -
State Water 743,186 -
Debt Service 146,819 -
Total 1,911,555 2,819,406
Actuals Through May
31, 2022

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The Enterprise funds experienced revenue at 84% of budget for Water and 77% for Wastewater for the period.

Operating expenses for Water and Wastewater are below budget at 56% and 53%, respectively.

ARPA
City Council has allocated $1,710,434 of the total award of $1,860,000. During the budget review process, City Council approved the use of funds from ARPA in the amount of $846,743 for the current fiscal year. So far through May 2022, $276,250 has been expended. The remaining of the funds would have to be expended by the end of December 2024. Please see Exhibit A for further details.

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CONCLUSION
The City needs to continue to look for cost cutting measures and additional revenue sources in order to continue to provide the services the residents expect and for these to be sustainable long-term. Sustainability is a concern when reserves are not at the target amount. Currently, the City has ARPA funds available, but these are limited. The City should not be dependent on one-time monies to sustain recurring expenses. Enterprise funds and other funds are general in line with budget and City Staff does not expect any further significant fluctuations in these funds. City Staff will continue to monitor closely and continue to provide a financial report to Council monthly.

Information in this report is unaudited.

ARPA Summary ‐ Draft
BUDGETED ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ESTIMATE Est BUDGETED BUDGETED Description Council Approved FY21‐22 DEC 2021 JAN 2022 FEB 2022 MAR 2022 APR 2022 MAY 2022 JUN 2022 FY21‐22 REMAINING FY22‐23 REMAINING FY23‐24 REMAINING revenue General Fund loss of revenue $ 200,456 $ 30,000 $ 30,000.00 $ 30,000.00 $ 170,456.17 170,456.17 ‐ ‐ ‐ revenue General Plan Environmental impact review $ 46,074 $ ‐ $ 46,073.80 46,073.80 ‐ ‐ ‐ Water Utility debt forgiveness $ 35,000 $ 35,000 $ 35,000.00 $ 35,000.00 $ ‐ ‐ ‐ ‐ ‐ CDBG Los Amigos de Guadalupe $ 40,000 $ 20,000 $ 2,707.54 $ 3,286.67 $ 3,200.00 $ 9,194.21 $ 30,805.79 ‐ 30,805.79 ‐ ‐ revenue Cyber Sec Upgrades IT $ 75,000 $ 26,220 $ 26,220.00 $ 26,220.00 $ 48,780.00 24,390.00 24,390.00 24,390.00 ‐ Rec Manager $ 168,865 $ 50,957 $ 6,148.79 $ 6,721.04 $ 6,721.04 $ 6,721.04 $ 6,716.47 $ 6,720.00 $ 39,748.38 $ 129,116.82 ‐ 129,116.82 129,116.82 Jack O'Connell Park $ 25,000 $ 25,000 $ 3,496.06 $ 21,503.94 $ 25,000.00 $ ‐ ‐ ‐ ‐ ‐ 01‐4300‐1550 Concession Stand $ 1,000 $ ‐ $ 1,000.00 1,000.00 ‐ ‐ ‐ 01‐4300‐1550 Recreational Programs $ 20,000 $ 313.09 $ 15.20 $ 328.29 $ 19,671.71 19,671.71 ‐ ‐ ‐ 01‐4300‐1550 Tables and C Storage $ 8,900 $ ‐ $ 8,900.00 8,900.00 ‐ ‐ ‐ 01‐4140‐2999 PPE Supplies $ 4,800 $ 2,098 $ 169.64 $ 169.64 $ 4,630.36 4,630.36 ‐ ‐ ‐ Public Safety Paid Volunteers $ 10,000 $ 10,000 $ 8,901.16 $ 2,179.91 $ 1,598.60 $ (2,679.67) $ 10,000.00 $ (0.00) ‐ (0.00) ‐ (0.00) CIP Planning Software $ 62,933 $ 73,000 $ ‐ $ 62,933.13 73,000.00 (10,066.87) ‐ (10,066.87) 01‐4140‐2151 Adobe $ 18,208 $ 3,166 $ 3,165.91 $ 7,423.30 $ 10,589.21 $ 7,618.51 7,618.51 ‐ ‐ ‐ WIFI for LeRoy Park ‐ Change Orders $ 39,000 $ 30,370.00 $ 8,630.00 $ 39,000.00 $ ‐ ‐ ‐ ‐ ‐ Live Streaming Equipment, Webcam, TV's $ 8,500 $ 4,090.80 $ 1,008.96 $ 1,972.82 $ 1,427.42 $ 8,500.00 $ ‐ ‐ ‐ ‐ ‐ 01‐4140‐2151 Building Attendent ‐ Live Streaming Administration $ 4,320 $ ‐ $ 4,320.00 4,320.00 ‐ ‐ ‐ 01‐4140‐2151 Spanish/Mixteco Interpreting Services $ 7,500 $ ‐ $ 7,500.00 7,500.00 ‐ ‐ ‐ 01‐4140‐2151 Website Update $ 15,000 $ 3,500 $ 3,500.00 $ 1,050.00 $ 1,100.00 $ 125.00 $ 1,775.00 $ 1,000.00 $ 8,550.00 $ 6,450.00 6,450.00 ‐ ‐ ‐ 01‐4140‐2151 Website Content $ 4,800 $ ‐ $ 4,800.00 4,800.00 ‐ ‐ ‐ 01‐4140‐2151 Website Event Management Plugin $ 5,000 $ ‐ $ 5,000.00 5,000.00 ‐ ‐ ‐ 01‐4140‐2151 Website PW Request ‐ Workflow Management $ 1,200 $ ‐ $ 1,200.00 1,200.00 ‐ ‐ ‐ 01‐4140‐1550 Surface Pro 7 w/Keyboard $ 19,682 $ ‐ $ 19,681.60 19,681.60 ‐ ‐ ‐ CIP Council Chambers ‐ ADA/Window Ventilation Update $ 300,000 $ 300,000 $ ‐ $ 300,000.00 300,000.00 ‐ ‐ ‐ CIP Architectural Drawings $ 100,000 $ 100,000 $ ‐ $ 100,000.00 100,000.00 ‐ ‐ ‐ CIP City Hall Restroom(s) Redesign $ 154,000 $ ‐ $ 154,000.00 154,000.00 ‐ ‐ ‐ 01‐4200‐1400 Generator (1) $ 50,000 $ ‐ $ 50,000.00 50,000.00 ‐ ‐ ‐ 01‐4145‐2150 Auditorium Upgrades $ 75,000 $ 75,000 $ 247.00 $ 2,571.16 $ 10,033.73 $ 15,450.00 $ 28,301.89 $ 46,698.11 ‐ 46,698.11 ‐ ‐ 01‐4145‐1550 PW Conference Room Upgrades $ 18,000 $ 18,000 $ 200.62 $ 2,020.00 $ 69.13 $ 71.68 $ 2,361.43 $ 15,638.57 15,638.57 ‐ ‐ ‐ 01‐4145‐1550 Finance Office Upgrades $ 5,000 $ 5,000 $ ‐ $ 5,000.00 5,000.00 ‐ ‐ ‐ 01‐4145‐2150 Vegetation Maintenance $ 50,000 $ 30,000 $ 8,043.00 $ 6,041.00 $ 5,040.00 $ 19,124.00 $ 30,876.00 30,876.00 ‐ ‐ ‐ Maintenance Lead $ 85,500 $ 23,328 $ ‐ $ 85,500.00 85,500.00 85,500.00 CIP Library Relocation $ 30,000 $ ‐ $ 30,000.00 30,000.00 ‐ ‐ ‐ Admin and Finance Heating $ 5,460 $ 5,460 $ 4,280.00 $ 1,180.16 $ 19,780.00 $ 25,240.16 $ (19,780.00) ‐ (19,780.00) ‐ (19,780.00) SBCAG Broadband Contribution $ 5,223 $ 5,422.63 $ 5,422.63 $ (200.00) ‐ (200.00) ‐ (200.00) 01‐4200‐0100 Differential for Emergency Services Manager $ 3,298 $ 3,298 $ ‐ $ 3,298.00 3,298.00 ‐ ‐ ‐ 01‐4405‐0150 Temp. Permit/Planning appointment for scanning $ 1,210 $ 1,210 $ ‐ $ 1,210.00 1,210.00 ‐ ‐ ‐ Drinking Fountain and refridgerator $ 6,506 $ 6,506 $ 6,506.25 $ 6,506.25 $ (0.25) ‐ (0.25) ‐ (0.25) CIP Emergency declaration ‐ electrical issues $ ‐ $ ‐ $ 1,350.00 $ 1,350.00 $ (1,350.00) 50,000.00 (51,350.00) ‐ (51,350.00) $ 1,710,434 $ 846,743 $ 200.62 $ 34,080.59 $ 17,921.49 $ 47,906.54 $ 86,376.12 $ 89,764.17 $ 54,356.56 $ 330,606.09 $ 1,379,828.32 1,222,218.62 157,609.70 24,390.00 133,219.70 Total ARPA awarded $ 1,860,000
Remaining to allocate $ 149,566 BUDGETED ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ESTIMATE TOTAL ESTIMATE TOTAL BUDGET TOTAL BUDGET FY21‐22 DEC 2021 JAN 2022 FEB 2022 MAR 2022 APR 2022 May 2022 June 2022 FY21‐22 FY22‐23 FY23‐24 Received $ 930,930 $ 365,706 $ 201 $ 31,294 $ 17,921 $ 45,454 $ 18,699 $ 74,351.44 $ 29,652.62 $ 217,572 related to General Fund $ 484,413 related to General Fund $ 24,390 related to General Fund $ ‐ $ ‐ $ ‐ $ ‐ $ 2,453 $ ‐ $ ‐ $ ‐ $ 2,453 related to transit $ ‐ related to transit $ ‐ related to transit $ 20,000 $ ‐ $ ‐ $ ‐ $ ‐ $ 33,078 $ 11,916.67 $ 3,200.00 $ 48,194 related to cdbg $ 30,806 related to cdbg $ ‐ related to cdbg $ 2,787 $ ‐ $ 2,787 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 2,787 related to fund 60 $ ‐ related to fund 60 $ ‐ related to fund 60 $ 400,000 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,350 $ ‐ $ ‐ $ 1,350 related to CIP $ 707,000 related to CIP $ ‐ related to CIP$ 33,250 $ ‐ $ ‐ $ ‐ $ ‐ $ 33,250 $ ‐ $ ‐ $ 33,250 related to water $ ‐ related to water $ ‐ related to water$ 25,000 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 3,496.06 $ 21,503.94 $ 25,000 related to fund 38 related to fund 38 $ ‐ related to fund 38 $ 846,743 $ 201 $ 34,081 $ 17,921 $ 47,907 $ 86,376 $ 89,764 $ 54,357 $ 330,606 $ 1,222,219 $ 24,390 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐

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Agenda Item No. 6F

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of June 28, 2022
_______________________________ _________________________________ Prepared by: Approved by:

Lorena Zarate, Finance Director Todd Bodem, City Administrator SUBJECT: Professional Services Agreement with Badawi & Associates RECOMMENDATION:

That the City Council adopt a resolution approving professional services agreement with Badawi & Associates for auditing services for fiscal years ending June 30, 2022, through 2024, with the option of extending the contract for two subsequent fiscal years.

DISCUSSION:

On January 24, 2017, the City Council authorized the City to enter into a contract with Badawi & Associates to serve as the City’s audit firm to perform our annual audit for fiscal years 2016-17, 2017-18, and 2018-19, with the possibility of two 1-year extensions of the agreement upon mutual consent. City Council approved an extension for fiscal year 2019-20 so that Badawi & Associates could perform the City’s audit for the 2019-20 fiscal year on May 12, 2020. Subsequently, City Council approved a second extension for fiscal year 2020-21 so that Badawi & Associates could perform the City’s audit for the 2020- 21 fiscal year on January 12, 2021. During this time, Badawi & Associates has been very professional as well as responsive and supportive to the needs of the City. They have provided a wealth of guidance in relation to compliance with accounting standards and internal controls.

The Governmental Financial Officers Association (GFOA) best practices recommends a change in audit services every five years.

In order to obtain the services of another auditing firm (consistent with GFOA’s recommended best practice), on May 9, 2022, City staff released a request for proposals (RFP) for auditing services. The criteria were years of governmental auditing experience including single audits, peer review rating, disciplinary actions, RDA experience, and city references. However, only one proposal was received. The proposal received was prepared by Badawi & Associates. The proposal was very well written and met the criteria on the request. The city administrator and the finance director reviewed the proposal and determined that Badawi & Associates were qualified and that it would continue to provide the strong service that has been provided for the past 5 years. Although the best practice is to rotate audit firms Lorena Zarate

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every year, only Badawi & Associates submitted a response to the City’s RFP, and city staff has worked well with this audit firm.

FISCAL IMPACT:

The proposal submitted by Badawi & Associates include the following fees:

For comparison, the fee paid for the FY 2020-21 audit was $35,120. The renewal contract with Badawi & Associates would constitute an increase of $2,825 for the FY2021-22. This fee is split between General Fund and Enterprise funds. This service will be included in the budget for the fiscal year 2022-23.

ATTACHMENT:

1. Resolution No. 2022-52 approving a renewal of the City’s contract with Badawi & Associates for FY2022-FY2024 audit services, with the option of extension for 2 subsequent fiscal years

2. Badawi & Associates Proposal

3. Badawi & Associates Agreement
RESOLUTION NO. 2022-52

A RESOLUTION OF THE CITY COUNCIL OF THE CITY GUADALUPE

APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH BADAWI & ASSOCIATES FOR

AUDITING SERVICES
WHEREAS, the City entered into a professional services agreement (“Agreement”) with Badawi & Associates on January 24, 2017, to serve as the City’s audit firm to perform its annual audit for fiscal years 2017 through 2019, which permitted up to two 1-year additional terms upon mutual consent; and
WHEREAS, the City extended the Agreement with Badawi & Associatesfor the preparation of the audit for the fiscal years 2020 and 2021; and
WHEREAS, City has been satisfied with the performance of the Consultant as the professionalism and support has been of high quality; and
WHEREAS, the Governmental Financial Officers Association recommends that the audit firm is changed every five year; and
WHEREAS, the City release a request for proposals for auditing services on May 9, 2022, but only one proposal was received and the proposal was provided by Badawi & Associates, in which the fee for audit services is quoted at a similar price to the audit fee for the prior fiscal year; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Guadalupe as follows:

SECTION 1. The Agreement between the City of Guadalupe and Badawi & Associates for audit services for fiscal years 2022 through 2024, with the option of extending the contract for two subsequent fiscal years is hereby approved.

SECTION 2. The Mayor is authorized to sign the Agreement for Professional Services between the City of Guadalupe and Badawi & Associates Certified Public Accountants (attached to the staff report for this item).

SECTION 3. The City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the City Clerk shall consult with the City Administrator and City Attorney concerning any changes deemed necessary. that a renewal of the City’s contract with PASSED, APPROVED AND ADOPTED at a regular meeting on the 28th day of June, 2022 by the following vote:

MOTION:

ATTACHMENT 1
AYES:

NOES:

ABSENT:

ABSTAIN:

I, Amelia M. Villegas, City Clerk of the City of Guadalupe DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2022-52, has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held June 28, 2022, and that same was approved and adopted.

TECHNICAL PROPOSAL
For Professional Auditing Services for
the City of Guadalupe
For fiscal years ending June 30, 2022 through 2024,
with the option of extending the contract for each of
the two (2) subsequent fiscal years.

May 27, 2022
Contact Person:

Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Phone: (510) 768-8244
Fax: (510) 768-8249
E-mail: [email protected]
ATTACHMENT 2
City of Guadalupe
Table of Contents
Page
Letter of Transmittal ......................................................................................................................................... 1 Firm Qualifications and Experience ................................................................................................................ 3 Insurance ....................................................................................................................................................... 3 License to Practice in California .................................................................................................................... 3 Conflict of Interest .......................................................................................................................................... 3 Firm Qualifications ......................................................................................................................................... 3 Technical Approach ....................................................................................................................................... 4 Firm Experience ............................................................................................................................................. 5 Additional Activities ........................................................................................................................................ 5 Client Training Seminar ................................................................................................................................. 6 GASB 68 Firm Developed Tools and Assistance .......................................................................................... 6 Quality Control Review .................................................................................................................................. 6 Federal or State Desk Reviews ..................................................................................................................... 9 Disciplinary Action .......................................................................................................................................... 9 Litigations ....................................................................................................................................................... 9 Partner, Supervisory, and Staff Qualifications and Experiences .............................................................. 10 Similar Engagements with Other Governmental Entities ........................................................................... 17 Understanding of Services to be Provided .................................................................................................. 21 Specific Audit Approach ................................................................................................................................ 22 Objectives of Our Services .......................................................................................................................... 22 Audit Approach ............................................................................................................................................ 22 Technical Approach ..................................................................................................................................... 23 Use of Technology in the Audit ..................................................................................................................... 26 Audit Schedule ................................................................................................................................................ 28 Discussion of Relevant Accounting Issues ................................................................................................. 31 Comprehensive Cost Bid ............................................................................................................................... 32 Conclusion ...................................................................................................................................................... 33 Appendix A ...................................................................................................................................................... 34 References ................................................................................................................................................... 34 Appendix B ...................................................................................................................................................... 36 Exceptions to the Contract ........................................................................................................................... 36 Letter of Transmittal
May 27, 2022
Ms. Lorena Zarate
Finance Director
City of Guadalupe
918 Obispo Street
Guadalupe, CA 93434
Dear Ms. Zarate:

Badawi & Associates (B&A), Certified Public Accountants (the “Firm”) is pleased to have the opportunity to respond to your request for a proposal to provide external audit services and to submit its qualifications to perform an independent audit of the financial statements of the City of Guadalupe (the “City”) for the fiscal years ending June 30, 2022 through 2024, with the option of extending the contract for each of the two (2) subsequent fiscal years. The objective of our audits is to issue opinions regarding the fairness of presentation of the financial position of the City in accordance with generally accepted accounting principles. These audits are to be performed in accordance with generally accepted auditing standards, the standards set forth for financial audits in the Government Accountability Office’s (GAO) Government Auditing Standards, the provisions of the federal Single Audit Act of 1984, as amended in 1996, and the Uniform Guidance, Audits of States, Local Governments and Non-Profit Organizations, Uniform Administrative Requirements, as well as any other applicable federal, state, local or programmatic audit requirements.

We will also perform the following as part of our engagement:
- Single Audit
- Gann Limit Agreed-upon Procedures
We will also apply limited audit procedures to Management’s Discussion and Analysis (MD&A) and required supplementary information. In addition, we will prepare the management letter containing comments and recommendations regarding our review and evaluation of the systems of internal control and accounting procedures.

This proposal will highlight the background of the partners and staff assigned to the engagement, summarize our experience in the governmental area, and describe our approach to auditing the City.

This proposal demonstrates our ability to render the quality examination and to perform the necessary accounting and auditing services requested by the City on a timely basis.

As a partner of the Firm, I will be the primary contact for negotiation of the contract. Additionally, I have been authorized to legally bind the Firm. You may contact me at the following address and phone number:

Mr. Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Telephone: (510)768-8244
E-mail: [email protected]
Ms. Lorena Zarate
Finance Director
City of Guadalupe

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2 We are committed to performing the required work, completing the audit, and issuing the necessary auditors’ reports.

We believe we are the best qualified to perform the audit because our audit staff includes individuals well versed in municipal auditing and reporting requirements. We have performed auditing and consulting engagements for numerous cities throughout California. We will be responsive to the needs of the City, we understand the City’s operational environment, and pledge to you our complete commitment to providing a quality product that meets the City’s requirements.

The approach to the audit has been designed to meet the audit requirements of the various authorities with the least disruption to the City’s office operations. The foundation of the audit approach is based on communication coupled with a strong knowledge of City operations and detailed planning at the initial stages of the audit. Open communication lines with all parties of the Engagement Team and City Management and staff throughout the engagement eliminate “surprises”. Initial planning and proper assignment of duties to experienced personnel provide for an effective and efficient audit process. Consequently, inefficiencies and disruptions are kept to a minimum. In addition, we perform almost half of the audit tasks during the interim phase to minimize any unforeseen delays during the year-end phase and to ensure a smooth and timely audit process.

The Firm maintains liability insurance coverage for professional liability, Workers’ Compensation, Comprehensive General Liability and Auto as part of our comprehensive insurance policy.

The Firm is an Equal Opportunity employer and complies with all Federal and State hiring requirements. The Firm also supports Affirmative Action philosophies and works hard to provide disadvantaged groups with opportunities for self enhancement.

This proposal is a firm and irrevocable offer for 180 days.

We are confident that you will find our organization offers the required expertise, technical knowledge, and business understanding to perform an audit of the City. Our past experience provides us with a thorough understanding of the needs and requirements of the City, as well as the technical knowledge to perform such services in accordance with the accounting and auditing guidelines as published by the various authoritative entities.

We welcome your inquiries and look forward to further discussions with you.

Sincerely,
Ahmed Badawi
Partner
Badawi & Associates
Certified Public Accountants
City of Guadalupe Technical Proposal

3 Independence
The Firm is independent of the City of Guadalupe as defined by the GAO’s Standards for Audit of Governmental Organizations, Programs, Activities and Functions, and the AICPA and California State Society of Certified Public Accountants as promulgated in various auditing and professional standards.

Insurance
The Firm maintains professional liability insurance and other coverage as part of our comprehensive insurance policy. Upon selection as the City’s independent auditor, the Firm and our insurance provider will provide a certificate of insurance to the City which shows the minimum requirements identified by City have been met.

License to Practice in California
The Firm and all key professional staff assigned to the City’s audit are properly licensed to practice as Certified Public Accountants in the State of California and comply with GAO Government Auditing Standards.

The Firm is registered with the California State Board of Accountancy. Its State number is COR6823.

The Firm has met all required State and local laws, rules, and regulations.

Conflict of Interest
The Firm has no conflicts of interest in connection with providing the services described in this proposal. The Firm does not have any financial, business, or other professional relationships with the City or any member of City staff.

Firm Qualifications
Badawi & Associates was founded by Mr. Ahmed Badawi. Mr. Badawi has over 20 years of experience working with state and local government with a special focus on cities. Prior to founding B&A, Mr. Badawi was a partner with several local and national firms, where he headed their government practice in Northern California. Mr. Badawi founded Badawi & Associates to serve the fast-paced needs of California's local governments. The goal is to build a proactive, client-focused culture from the ground up and to eliminate the entrenched bureaucratic culture and intrinsic limitations of the big audit firms.

Located in Berkeley, CA, the Firm serves a variety of cities and towns throughout California as well as conducting financial related services for numerous special districts and authorities.

Names and phone numbers of several of our current and past clients and other references are provided for your inquiries. We encourage you to contact these individuals to obtain information on the quality of the audit and the ability of the audit staff.

Our Berkeley office will be the Engagement Office assigned to the City.

In addition to specific City financial statements, the Firm members have also audited numerous redevelopment agencies, public financing authorities, hospitals, housing authorities, transportation authorities, special districts, water districts, OCJP grants, selfinsurance pools, joint power authorities and has also performed numerous compliance audits in accordance with the Single Audit Act, childcare regulations, TOT regulations, AQMD regulations, franchise requirements.

The Engagement Partner assigned to the City will be Mitesh Desai, CPA. Mr. Desai’s background includes fourteen years of experience in municipal auditing. Mr. Desai has participated in the audits of numerous governmental agencies, assisted in their efforts to publish their Annual Comprehensive Financial Reports in compliance with GASB 34, and a volunteer member of the GFOA Special Review Committee. Mr. Desai has also achieved the Advanced Single Audit Certificate offered by the AICPA.

Firm
Qualifications
and Experience
City of Guadalupe Technical Proposal

4 The professional staffs assigned to the Engagement are qualified and experienced. Each individual of the Engagement Team has several years of experience and has conducted or participated in numerous municipal audits of various sizes. Their understanding of governmental operations and the various authoritative guidelines will provide the where-withall to perform the audit in an efficient and effective manner with minimal disruption to the City’s finance department.

Technical Approach
The approach to the audit has been designed to meet the audit requirements of the various authorities with the least disruption to the City’s operations. The foundation of the audit approach is based on communication coupled with a strong knowledge of City operations and detailed planning at the initial stages of the audit. Open communication lines with all parties of the Engagement Team and City Management and staff throughout the engagement eliminate “surprises”. Initial planning and proper assignment of duties to experienced personnel provide for an effective and efficient audit process. Consequently, inefficiencies, disruptions, and lack of understanding are kept to a minimum.

The audit approach will consist of four phases:
1) Initial Planning Meeting:

The Engagement Partner and Manager will meet with City Management to discuss the audit approach, identify specific needs of City Management, and familiarize themselves with City policies and practices.
2) Interim:

The Engagement Team members including the Engagement Team Partner will perform the internal control reviews, test transactions, evaluate compliance with Single Audit Act requirements, identify potential audit issues that need to be addressed, perform limited confirmation procedures, and develop a clear understanding between the Engagement Team and City Management of the year-end audit responsibilities and assignments. In addition, we strive to complete many of the year-end audit tasks during the interim phase to ensure a smoother audit process. We will work with the City on providing a list of those tasks that we will target to complete during interim and work with the City on how to complete them to minimize the amount of effort and time needed at year-end which in turn will assist the City in meeting its goal of issuing the Annual Financial Report.
3) Year-end:

The Engagement Team members including the Engagement Team Partner will conduct validation procedures on general ledger account balances, complete confirmation procedures, perform analytical procedures on revenue and expenditures, perform search for unrecorded liabilities, complete compliance work on Federal Assistance, and wrap up audit field work.
4) Reporting:

Auditor’s reports for all City reporting entities and compliance requirements will be finalized along with Single Audit Reports and Management Letter comments. The Partner and Manager will be available to make presentations to the City Council and/or designated bodies.

City of Guadalupe Technical Proposal

5 Firm Experience
The Firm is located in Berkeley and provides a full range of accounting services to governmental agencies throughout California, including audit, tax and accounting. The Firm’s professional staff members provide the financial background and specific experience to meet the City’s operational needs. Additionally, this situation provides the City with an auditing firm that has depth in capabilities to address any financial issue the City may need assistance with, and the quality audit approach that you expect.

Our Berkeley office will be the Engagement Office assigned to the City.

Firm policy requires that the Engagement Partner, during the first year of the engagement, be actively involved in the daily fieldwork. This means to the City that Mr. Badawi will actually be on-site during the audit coordinating the audit process, supervising the audit staff, gaining a hands-on understanding of City processes, and benefiting the City with his broad municipal experience. We have found that this effort benefits the City and the Firm through developing a thorough knowledge of the City’s practices and issues and establishing a close working relationship with the City’s Management. Additionally, continuity of audit personnel is assured because of the hands on involvement of the Partner.

We are committed to providing appropriate and related experience, personal involvement, and a broad business perspective to produce a quality end product within the time frames required.

The Firm provides financial and compliance auditing services to governmental agencies throughout California. We are a governmental agency auditing firm and our professional staff members have been performing these services for many years. As a result, we have performed financial and compliance audits on most, if not all, types of governmental agencies and operations including:
 Cities
 Redevelopment
Agencies
 Financing
Authorities
 Housing Authorities
 Special Districts
 Water Districts
 Waste Management
Authorities and
Operations
 Pension Plans
 Child Care
Operations
 Joint Power
Authorities
 Investment Activities
 Landfills
 Enterprise Funds
 Airports
 Transportation
Operations
 Federal and State
Grants
Additional Activities
We offer a full range of accounting and finance services to the governmental sector. These services include:
 Financial audits
 Compliance audits
 Tax advice
 Development of financial and
accounting policies and procedures
 Investment review and compliance
evaluation
 Operational reviews
 Technical guidance on existing and
upcoming accounting issues
 Training seminars
 Pension/profit-sharing plans
 Performance audits
 Business consulting
Consequently, Firm personnel are well qualified to perform the services expected by the City.

City of Guadalupe Technical Proposal

6 Client Training Seminar
The Firm hosts an annual update on recent technical accounting and finance issues affecting the governmental area. This all day session reviews new and anticipated pronouncements from GASB, discusses future issues under consideration by GASB, reviews accounting treatment of various transactions where issues may arise, and provides a general overview of state and federal compliance issues. All of our clients are invited to attend, free of charge. The one day session qualifies for CPE under the rules of the State Board of Accountancy and is held in the Bay Area.

GASB 68 Firm Developed Tools and Assistance
The Firm has developed tools to assist our clients with preparation of GASB 68 journal entries for the CalPERS’ Cost Sharing Plans (for which individualized actuarial valuations are no longer prepared) and the CalPERS’ Agent Multiple Employer Plans. In addition to providing our clients with these tools and instructions on how to use them, we are available to answer any questions on how to prepare and complete the GASB 68 journal entries.

Quality Control Review
According to Government Auditing Standards, firms who perform audits under the Yellow Book are required to have a peer review once every three years. We received a report with a rating of pass with no deficiencies which we attached for your review.

City of Guadalupe Technical Proposal

7 City of Guadalupe Technical Proposal

8 City of Guadalupe Technical Proposal

9 The Firm has policies and procedures to ensure it hires only qualified people, that it properly supervises them and provides professional training, that it advances them to responsibilities they are capable of handling, and that it provides them with necessary technical resources. All members of the Firm are very familiar with the stringent quality control standards established by the AICPA.

The Firm is a member of the AICPA Government Audit Quality Center.

The Firm is a member of the AICPA Private Companies Practice Section.

Federal or State Desk Reviews
The Firm has had no negative federal or state reviews in the past three (3) years.

Disciplinary Action
There has not been any state or federal disciplinary actions taken or pending against the Firm nor any findings to report.

Litigations
The Firm has not experienced any lawsuits or legal actions that have been resolved or are currently pending in the prior five years.

City of Guadalupe Technical Proposal

10 The Engagement Team will normally consist of six individuals who provide a broad business perspective and significant experience in governmental auditing. This team will provide access to a wide range of technical capabilities which will provide the City with not only the technical support necessary to perform the audit, but also the broad business background to interpret findings and observations to offer effective solutions to issues, and the personal involvement of the Engagement and Compliance Partners of the Firm.

The Engagement Team will be led by Mitesh Desai, CPA. Mr. Desai’s background includes fourteen years of experience in municipal auditing. Mr. Desai has participated in the audits of numerous governmental agencies, assisted in their efforts to publish their Annual Comprehensive Financial Reports in compliance with GASB 34, and a volunteer member of the GFOA Special Review Committee. Mr. Desai has also achieved the Advanced Single Audit Certificate offered by the AICPA.

The second member of the Engagement Team will be Wenwei Zhao, CPA. Ms. Zhao’s background includes six years of accounting and auditing experience. She has participated in the audits of numerous governmental entities and assisted in their efforts to publish their financial statements in compliance with various regulations, and is a volunteer member of the GFOA Special Review Committee. Ms. Zhao will be the Audit Senior of this engagement. She will serve as the Audit Manager.

The third member of the Engagement Team will be Samantha Michel, Ms. Michel’s background includes five years of accounting and auditing experience. She has participated in the audits of numerous governmental entities and assisted in their efforts to publish their financial statements in compliance with various regulations, Ms. Michel will be the Audit Senior of this engagement.

Engagement Partner
Mitesh Desai
CPA
Audit Manager
Wenwei Zhao
CPA
Engagement Quality
Reviewer
Monica Singhai
CPA
Audit Senior
Samantha Michel
Professional
Audit Staff
Professional
Audit Staff
Partner,
Supervisory,
and Staff
Qualifications
and Experiences
City of Guadalupe Technical Proposal

11 The fourth member of the Engagement Team will be Monica Singhai, CPA. Mrs. Singhai’s background includes over seventeen years of experience in municipal auditing. She has participated in the audits of numerous governmental agencies and assisted in their efforts to publish their financial statements in compliance with various regulations. Mrs. Singhai will be the Engagement Quality Reviewer of this engagement.

Each member of the Engagement Team participates in continuing education programs offered by the AICPA and California State Society of Certified Public Accountants, and each has met the continuing education requirements for municipalities. In addition, the firm offers at least 60 hours of in-house CPE annually focused mainly on municipal audits.

Professional Development:

The Firm maintains a comprehensive training program targeted at appropriate professional staff levels. It utilizes in-house developed educational programs, AICPA and California CPA Foundation educational programs, and on-the-job training.

The Firm’s annual training schedule which officially begins in April for all professional staff and administrative staff includes comprehensive in-house training sessions on such topics as:
 Review of principles of accounting and financial reporting for state and local governments
 Review of governmental fund types and account groups
 Review of newly issued generally accepted auditing standards and GAO auditing standards
 Review of Internal Control evaluation approaches including COSO principles  Updates on recent governmental accounting and reporting guidelines  Review of Single Audit requirements and approaches
 Review of financial audit approaches
 Overview of audit and internal control work paper techniques  Review of GASB reporting requirements
 Review of current issues facing the governmental community During the year, professional staff members are sent to various educational sessions sponsored by the AICPA and California State Society of CPAs, as considered appropriate for the level and need of the individual. These classes include, among others:
 Governmental Financial Reporting Standards and Practices  Yellow Book: Government Auditing Standards
 Financial Accounting Standards: Comprehensive Review
 Single Audit
 Governmental Auditing & Accounting Update
 Governmental Accounting Principles
 Comprehensive Review of Generally Accepted Auditing Standards The result of the Firm’s training program is the production of a highly educated and competent municipal audit group capable of performing an efficient and effective audit for the City.

The Engagement Team members will continue their professional development efforts.

City of Guadalupe Technical Proposal

12 Staff Retention and Continuity:

The Firm's policy on providing service to our clients includes a commitment to maintaining continuity of audit personnel. We cannot guarantee that our staff will remain with the Firm.

However, to encourage our staff to remain with us, we pay competitive wage rates; offer promotional opportunities; provide state-of-the-art equipment and excellent working conditions; and offer various benefits, such as retirement plans, medical plans, profit sharing programs, educational benefits, and other such benefits. We can also guarantee that the partner will be involved in future years. Continuity of audit staff is of prime concern to us and because of the hands-on involvement of the partner; we can assure you that future years’ audits will be conducted in an efficient and effective manner with qualified and experienced professionals.

Resumes of each member of the Engagement Team follow.

City of Guadalupe Technical Proposal

13 Mitesh Desai, Certified Public Accountant – Engagement Partner Length of Career
 Fourteen years experience in municipal auditing with a special focus on cities  Certified Public Accountant for the State of California Professional Experience
 Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation Development Act audits, and housing audits
Education
 BS Degree in Business Economics with an emphasis in Accounting from University of California, Santa Barbara
Professional Activities
 Member, American Institute of Certified Public Accountants  Member, California Society of Certified Public Accountants  Volunteer Member, GFOA Special Review Committee
Continuing Education
 Various municipal accounting courses offered by the California Society of CPAs and local universities including:
- Governmental Financial Reporting Standards and Practices - Yellow Book: Government Auditing Standards
- Municipal Accounting
- Single Audit
 Has met the current CPE educational requirements to perform audits on governmental agencies Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:

Albany X
Antioch X X X
Azusa X X X X
Berkeley X X X X X
Buena Park X X X X
Calimesa X X X
Crescent City X X X X X
Dablin X X X
East Palo Alto X X X X
El Cerrito X X X X X
Foster City X X X X X
Fremont X X X X X
Lemon Grove X X
Lindsay X X X
Menlo Park X X X
Millbraie X X X X
Newark X X X X
Oakdale X X X X
Pittsburg X X X X X
Placerville X X X X
Rio Vista X X X X
San Mateo X X X X X
Sebastopul X X X X
Solvang X X
Susanville X
Turlock X XX
Union City X XX
Vacaville XXXX X
Waterford X X X X
Yountville X XX
Yuba City XX XX
Child Care Programs:

Menlo Park Child Care XX
Stanislaus County Childcare XX
Non-profits:

Housing Endowment and Regional Trust X
Special Districts and Other:

Castro Valley Sanitary District X
Cosumnes Community Services District X
Marin Municipal Water District X
West County Wastewater District XX
XX
Services Provided
Contra Costa Child Development Programs
City of Guadalupe Technical Proposal

14 Wenwei Zhao, Certified Public Accountant – Professional Audit Manager Length of Career
 Six years experience in auditing
 Certified Public Accountant for the State of California Professional Experience
 Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation Development Act audits, and housing audits
Education
 Master of Accounting from University of Pittsburgh, PA Professional Activities
 Volunteer Member, GFOA Special Review Committee
Continuing Education
 Various municipal accounting courses offered by the California Society of CPAs and local universities including:
- Governmental Financial Reporting Standards and Practices - Yellow Book: Government Auditing Standards
- Municipal Accounting
- Single Audit
 Has met the current CPE educational requirements to perform audits on governmental agencies Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:

Barstow X
Berkeley X X X
Crescent City X X X X
East Palo Alto X X X
El Cerrito X X
Folsom X X
Lafayette X X X X
Larkspur X
Menlo Park X X X
Millbrae X
Newark X X X X
Oakdale X X X
Pinole X X
Redwood City X
Richmond X X X X X
San Luis Obispo X X X
San Mateo X X
Susanville X X
Town of Los Gatos X
Town of Yountville X X
Union City X X X X
Waterford X
Yuba City X X X X
Towns:

Los Gatos X
Child Care Programs:

Contra Costa County Child Care X X
Special Districts:

Alameda County Single Audit X
Cosumnes Services District X
Elk Grove Water District X
Hayward Area Recreation and Park District X
Marin Municipal Water District X
Resource Conservation District of Santa
Cruz County
X
San Mateo County Mosquito and Vector
Control District
X
Santa Cruz Regional 9-1-1 X
Services Provided
City of Guadalupe Technical Proposal

15 Samantha Michel – Professional Audit Senior
Length of Career
 Five years experience in auditing
Professional Experience
 Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation Development Act audits, and housing audits
Education
 BS, University of Washington, Seattle, WA
 Accounting, Foothill College, Los Altos Hills, CA
Professional Activities
 Member, California Society of Certified Public Accountants  Member, Forensic Services Section, California Society of Certified Public Accountants Continuing Education
 Various municipal accounting courses offered by the California Society of CPAs and local universities including:
- Governmental Financial Reporting Standards and Practices - Yellow Book: Government Auditing Standards
- Municipal Accounting
- Single Audit
 Has met the current CPE educational requirements to perform audits on governmental agencies Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities/Towns:

Guadalupe x x x
Antioch x x x x
Barstow x
Berkeley x
Buena Park x
Crescent City x x x
East Palo Alto x
El Cerrito x
Folsom x x x x
Lafayette
Larkspur
Los Gatos x
Millbrae x x
Menlo Park x x
Petaluma x
San Luis Obispo x x x
San Mateo x x x x
Union City x
Vacaville x x
Waterford x
Yuba City x
Counties:

Contra Costa County x
Special Districts and Other:

Hayward Area Recreation District x
Amador County Transporation Commission x x
Amador Transit x x
Central County Fire District x
Elk Grove Water District x
Port of San Luis Harbor x
San Mateo Consolidated Fire District x
StopWaste x
Services Provided
City of Guadalupe Technical Proposal

16 Monica Singhai, Certified Public Accountant – Engagement Quality Reviewer Length of Career
 Seventeen years of experience in auditing with special focus on municipalities.  Certified Public Accountant for the State of California.

Professional Experience
 Has performed numerous financial audits, Single Audits, RDA audits and PFA audits Education
 Bachelor of Science in Accounting from Jabalpur University, India.

Professional Activities
 Member, California Society of Certified Public Accountants.  Member, Institute of Chartered Accountants of India.

Continuing Education
 Various local governments and not for profit accounting courses offered by the California Society of CPAs and AICPA including:
- Governmental Financial Reporting Standards and Practices - Yellow Book: Government Auditing Standards
- Single Audit
 Has met the current CPE educational requirements to perform audits on governmental agencies.

Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:

Berkeley XX X
East Palo Alto XX
Menlo Park XX X
Redwood City XX X
Special District:

Alameda County Fire District X
Alameda County Law Library X
Burbank Sanitary District XX
Lions Gate Community Service District X
Los Medanos Community Health Care District X
Oakland-Alameda County Coliseum Authority X
School District:

Bayshore Elementary School District X
Belmont-Redwood Shores School District XX X
Brisbane School District X
Jefferson Elementary School District XX
La Honda-Pescadero Unified School District XX X
Pacifica School District XX
Ravenswood City School District XX X
Redwood City School District XX
San Mateo-Foster City School District XX X
Charter schools:

Oakland Military Institute College Preparatory
Academy XX
Sacramento Valley Charter School X
West Sacramento College Prep Charter School X
First 5:

First 5 Alameda County XX
First 5 Inyo County X
First 5 Marin County X
First 5 Monterey County X
First 5 Santa Cruz County X
Others:

Alameda County Housing Community
Development Agency X X X
Alameda County Redevelopment Agency X X
Alameda County Successor Agency X
City of Oakland - Measure C X
City of Oakland - Measure Y X
City of Oakland - Child Care and
Development Program X
City of Oakland - Wildfire Prevention
Assessment District X
Services Provided
City of Guadalupe Technical Proposal

17 The tables below and on the following page are a partial listing of our clients similar to the City, and illustrates the many different types of components involved in each audit engagement that present very difficult and complex auditing and accounting challenges (in order of audit hours). ** Indicates cities with population over 50,000
** Indicates cities with governmental revenues over $100 million and population over 50,000 City Client Since Hours Engagement Partner Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
RDA/Successor Agency
Single Audit
TDA
Water Fund
Sewer Fund
Child Care Audit
Housing Authority
Enterprise Funds
Pension Trust Fund
** Richmond 2020 3,160 Ahmed
Badaw i
Ms. Delmy Cuellar
Finance Manager
(510)620-6790
[email protected]

X XXX X XXX
** Berkeley 2008 1,850 Mitesh
Desai
Mr. Henry Oyekanmi
Finance Director
(510)981-7300
[email protected]

X XXXX X XX
* Union City 2006 850 Mitesh
Desai
Ms. Jackie Acosta
Finance Director
(510)675-5345
[email protected]

X XXXX X
** Folsom 2019 807 Ahmed
Badaw i
Ms. Stacey Tamagni
Finance Director
(916)461-6712
[email protected]

X X X XX X
* Petaluma 2019 691 Ahmed
Badaw i
Ms. Corey Garberolio
Finance Director
(707)778-4357
[email protected]

X X XXXXX
* San Luis
Obispo 2019 638 Ahmed Badaw i
Ms. Brigitte Elke
Finance Director
(805)781-7125
[email protected]

X X XXXX
* Antioch 2005 586 Mitesh
Desai
Ms. Daw n Merchant
Finance Director
(925)779-6135
[email protected]

X XXXXXX X
Lafayette 2020 586 Ahmed
Badaw i
Ms. Tracy Robinson
Administrative Services Director
(925)299-3227
[email protected]
X XX X
East Palo Alto 2014 560 Mitesh
Desai
Mr. Tomohito Oku
Finance Director
(650)853-3122
[email protected]

X XXX X X
El Cerrito 2018 547 Ahmed
Badaw i
Ms. Lucy Xie
Senior Accountant
(510)215-4310
[email protected]

X XXXX XX
** Dublin 2018 546 Ahmed
Badaw i
Ms. Lisa Hisatomi
Director of Finance & Admin. Services
(925)833-6640
[email protected]
X X XX
Similar
Engagements
with Other
Governmental
Entities
City of Guadalupe Technical Proposal

18 City
Client Since
Hours
Engagement Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
RDA/Successor Agency
Single Audit
TDA
Water Fund
Sewer Fund
Child Care Audit
Housing Authority
Enterprise Funds
Pension Trust Fund
Azusa 2017 540 Ahmed
Badaw i
Ms. Talika Johnson
Administrative Services Director
(626)812-5202
[email protected]

X XXX XX X
Millbrae 2015 524 Ahmed
Badaw i
Mr. Mike Sung
Finance Director
(650)259-2433
[email protected]

X XXX XX X
* Yuba City 2017 450 Ahmed
Badaw i
Mr. Spencer Morrison
Finance Director
(530)822-4615
[email protected]

X XXX XX X
Wasco 2021 428 Ahmed
Badaw i
Mr. Isarel Perez-Hernandez
Finance Director
(661)758-7230
isperez@cityofw asco.org
XXXXX
Pinole 2018 419 Ahmed
Badaw i
Ms. Markisha Guillory
Finance Director
(510)724-9823
[email protected]

X XX X X
Larkspur 2019 382 Ahmed
Badaw i
Ms. Cathy Orme
Administrative Services Director
(415) 927-5019
[email protected]
X XX
Atw ater 2021 380 Ahmed
Badaw i
Ms. Kellie Jacobs-Hunter
Finance Director
(209)357-6347
kjacobshunter@atw ater.org

XX XX X
Los Gatos 2017 366 Ahmed
Badaw i
Mr. Stephen Conw ay
Finance and Admin. Services Director
(408)354-6828
sconw [email protected]
XX X X
Lindsay 2017 366 Ahmed
Badaw i
Ms. Juana Espinoza
Finance Director
(559)562-7102 ext. 8025
[email protected]
XX X
Waterford 2018 311 Ahmed
Badaw i
Mrs. Tina Envia
Finance Manager
(209)874-2328 Ext: 104
tenvia@cityofw aterford.org
X XX X
Solvang 2019 308 Ahmed
Badaw i
Ms. Xenia Bradford
City Manager
(805)688-5575
[email protected]
X X XX
Oakdale 2016 306 Ahmed
Badaw i
Mr. Albert Avila
Finance Director
(209)845-3584
[email protected]

XXXXX X
City of Guadalupe Technical Proposal

19 City
Client Since
Hours
Engagement Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
RDA/Successor Agency
Single Audit
TDA
Water Fund
Sewer Fund
Child Care Audit
Housing Authority
Enterprise Funds
Pension Trust Fund
Guadalupe 2017 303 Ahmed
Badaw i
Ms. Lorena Zarate
Finance Director
(805)356-3895
[email protected]

XX XX X
Sebastopol 2017 275 Mitesh
Desai
Mrs. Ana Kw ong
Finance Director
(707)824-4879
akw [email protected]

X XX XX X
Cotati 2020 265 Ahmed
Badaw i
Ms. Angela Courter
Director of Administrative Services
707-665-4236
[email protected]

X X XX X
Crescent City 2014 227 Mitesh
Desai
Ms. Linda Leaver
Finance Director
(707)464-7483 x224
[email protected]

XX XX XX
Scotts Valley 2019 202 Ahmed
Badaw i
Ms. Casey Estorga
Administrative Services Director
(831) 440-5615
[email protected]
X XX X
Calimesa 2013 193 Mitesh
Desai
Ms. Bonnie Johnson
City Manager
(909)795-9801 ext 231
[email protected]
X
City of Guadalupe Technical Proposal

20 The table below lists all special district engagements (in order of audit hours):

Special District
Client Since
Hours
Engagement
Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
Single Audit
Enterprise Funds
San Gabriel Valley Council of Governments 2021 618 Ahmed Badawi
Mr. Rey Alimoren,
Director of Finance
(626) 962-9292
[email protected]
No N/A X
County of Contra Costa Community
Services Bureau Child Development
Program
2013 450 Mitesh
Desai
Ms. Nancy Benavides
Fiscal Officer
(925)681-4268
[email protected]
No N/A
Florin Resource Conservation District/
Elk Grove Water District 2015 350 Mitesh Desai
Mr. Patrick Lee
Finance Manager / Treasurer
(916)685-3556
[email protected]
Yes Yes X
Hayward Area Recreation
and Park District 2017 350 Ahmed Badawi
Ms. Anne Maze
Interim Finance Manager
(925)451-5318
[email protected]
No N/A
Amador County
Transportation Commission 2019 260 Ahmed Badawi
Mr. John Gedney
Executive Director
(209)267-2282
[email protected]
No N/A
Solano County Water Agency 2020 243 Ahmed
Badawi
Mr. Roland Sanford
General Manager
(707) 455-1103
[email protected]
No N/A
San Mateo Mosquito and
Vector Control District 2018 228 Ahmed Badawi
Mr. Richard Arrow
Finance Director
(650)344-8592
[email protected]
Yes Yes
Monterey Bay Unified Air
Pollution Control District 2016 200 Mitesh Desai
Ms. Rosa Rosales
Administrative Services Manager
(831)718-8019
[email protected]
No N/A
Southern Marin Fire
Protection District 2020 160 Ahmed Badawi
Ms. Alyssa Schiffmann
Finance Manager
(415)388-8182
[email protected]
No N/A
Alameda County Waste Management
Authority (StopWaste) 2018 154 Ahmed Badawi
Mrs. Jennifer Luong
Finance Services Manager
(510)891-6500
[email protected]
No N/A
Aptos La Selva
Fire District 2016 150 Mitesh Desai
Ms. Nancy Dannhauser
Finance Director
(831)685-6690
[email protected]
No N/A
Central County
Fire Department 2012 150 Mitesh
Desai
Ms. Jan Cooke
Finance Director
(650)375-7408
[email protected]
Yes Yes
Zayante Fire
Protection District 2017 150 Mitesh Desai
Mr. John Stipes
Fire Chief
(831) 335-5100
[email protected]
No N/A
Santa Cruz
Regional 9 - 1 - 1 2016 150 Mitesh Desai
Mr. Dennis Kidd
General Manager
(831)471-1038
[email protected]
No N/A
Resource Conservation
District of Santa Cruz
County
2017 150 Mitesh
Desai
Ms. Sharon Corkrean
Director of Finance
[email protected]
No N/A X
Port of San Luis
Harbor District 2017 150 Ahmed Badawi
Ms. Kristen Stout
Business Manager
(805)595-5413
[email protected]
Yes Yes X
Central Fire Protection District of
Santa Cruz County 2018 150 Mitesh Desai
Mrs. Nancy Dannhauser
Finance Director
(831)479-6842
[email protected]
No N/A
City of Guadalupe Technical Proposal

21 The City desires an audit of the financial records for the City and an expression of an opinion in accordance with generally accepted accounting principles on the fairness of presentation of financial statements for the fiscal years ending June 30, 2022 through 2024, with the option of extending the contract for each of the two (2) subsequent fiscal years.

The Firm will:
 Express an opinion on the fair presentation of its basic financial statements which includes but is not limited to the financial statements of governmental activities, the business-type activities, each major fund and all aggregate remaining fund information in conformity with generally accepted accounting principles in the United States of America.
 Express an in-relation-to opinion on the fair presentation of its combining and individual non-major and fiduciary fund financial statements and schedules in conformity with generally accepted accounting principles. The Firm will provide an “in-relation-to” report on the supporting schedules contained in the Annual Financial Report based on the auditing procedures applied during the audit of the basic financial statements and schedules.
 Provide an “in-relation-to” report on the schedule of expenditures of federal awards based on the auditing procedures applied during the audit of the financial statements.  Perform the audit in accordance with generally accepted auditing standards accepted in the United States of America, applicable to the financial audit contained in the Government Auditing Standards issued by the Comptroller General of the United States and the provisions of the Uniform Guidance, Audits of States, Local Governments and Non-Profit Organizations.
 Perform limited procedures on supplementary information required by the Government Accounting Standards Board.
 Issue the following reports, following the completion of the audit of the fiscal year’s financial statements:
 Independent Auditor’s Report on Financial Statements and Schedule of Expenditure of Federal Awards
 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
 Independent Auditor’s Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with the Uniform Guidance
 Schedule of Findings and Questioned Costs
 Auditor’s Communication with Those Charged with Governance  Annual Financial Report following the requirements and guidelines of the GFOA award program
 Gann Limit Agreed-upon Procedures
 Provide special assistance to the City as needed.
 Retain all working papers and reports at the audit firm’s expense for a minimum of 7 years. In addition, make working papers available to the City and/or any government agency as appropriate.

Should any conditions be discovered requiring corrective action, the Firm will provide a detailed description of the findings and recommended actions as to their resolution.

Understanding
of Services to be
Provided
City of Guadalupe Technical Proposal

22 The Firm will submit a report to the City’s Council and management detailing auditor’s responsibility under generally accepted auditing standards, significant accounting policies, management judgments and accounting statements, significant audit adjustments, other information in documents containing audited financial statements, disagreements with management, management consultations with other accountants, major issues discussed with management prior to retention, difficulties encountered during the audit, and any significant deficiencies or material weaknesses found during the audit. Non-material instances of noncompliance will be reported in a separate management letter, if appropriate, along with any other observations or recommendations determined to be informative to City Management.

The Firm will be available to provide advice and counsel regarding significant matters during the year.

The Firm’s Partner and Staff welcome the opportunity to make presentations to the City Council and will be ready to respond to questions from the Council and citizens of the City.

Objectives of Our Services
The basic objective of our audit of the City is to conduct an examination of the financial statements in accordance with generally accepted auditing standards and to express our opinion on the fairness of presentation of such financial statements in conformity with generally accepted accounting principles.

Additionally, we believe that another real value of our audit lies in meeting other objectives at no additional cost. The following are other objectives of our services that have important benefits to the City:
 To offer substantive observations and recommendations relating to accounting and operating control policies and procedures.
 To identify opportunities for operating efficiencies and isolate candidate activities for cost reduction opportunities.
 To perform a professional audit in an efficient and effective way to minimize disruption to the office operations.
 To offer ongoing advisory services to assist in the running of the operation and implementation of improved operating procedures.

The engagement will be conducted within the framework of the Firm's quality control program which includes the use of audit programs, careful planning, use of computerized audit software and internal control evaluation and documentation software, and objective review procedures.

On-site staff will use Firm supplied portable computers and printers.

Audit Approach
The specific audit approach has been designed to efficiently and effectively address the audit requirements of the City, to perform the audit of the City’s financial records in a timely manner with minimal disruptions to office operations, and to meet the City’s timeline.

The audit will be conducted in accordance with:
1) Generally accepted auditing standards established by the AICPA 2) The standards contained in Government Auditing Standards issued by the GAO 3) Provisions of the Single Audit Act and the Uniform Guidance 4) Requirements issued by the California State Controller’s office 5) Other requirements as required

Specific Audit
Approach
City of Guadalupe Technical Proposal

23 We will conduct the necessary audit steps to perform:
 Planning of the engagement
 Evaluation of the existing internal control environment to determine degree of risk of material misstatement
 Determination of degree of compliance with laws, regulations, grant provisions, and City approved policies
 Assessment of potential fraudulent issues
 Validation of account balances
 Verification of reasonableness of management estimates Technical Approach
We use an industry specific audit approach tailored to governmental entities. Our governmental audit approach addresses the special risks and circumstances of local governments. As a result, the audit is conducted efficiently and effectively with minimal disruption to your staff.

The core of our governmental technical audit approach can be summarized as follows:

1. Planning, Understanding and Communication:

Based on our previous audit experience, using the budget, organizational charts, manuals and other financial information systems and our knowledge of how governments work, we will obtain an insight to the specific concerns and sensitivities of the City. Our understanding is updated continuously through our year-round contact and communication efforts. We will agree on common audit objectives and expectations with management before audit work begins and, throughout the audit, will meet regularly with management to discuss audit issues and to gather feedback.

2. In-Depth Review of Systems and Controls:

We have developed diagnostic reviews which enable us to evaluate your systems and controls, and to provide management with constructive feedback. Combined with our knowledge of the City and understanding and experience with the City’s accounting software, our control review will form the basis of our audit risk assessment. We will utilize the COSO approach in our evaluation of the City’s internal processes to identify potential control deficiencies. In future years, we will update our understanding through similar procedures.

3. Risk-Based Customized Testing Program:

Our audit approach is tailored to governmental applications. We will use audit programs specifically designed to address the operational environment of governmental entities. Our approach will identify potential control risks and the opportunities for risk of material misstatements and fraud. We will evaluate the various risk assessments and identify the potential risks relating to the:
 Balance Sheets / Statement of Net Position
 Statement of Revenues and Expenditures / Statement of Activities  Presentation
 Disclosure
Our audit procedures will then be developed to address these risk areas.

4. Expanded Interim Fieldwork:

Timeliness and audit efficiency is enhanced by performing extensive interim work.

Partners, managers and senior staff work with City staff to identify and resolve potential audit issues early. Accordingly, the amount of audit work to perform at year end is minimized. Because our audit staff is familiar with the operations before year-end fieldwork begins, disruption of accounting staff is minimized.

City of Guadalupe Technical Proposal

24 5. Smooth Transition:

Our testing program focuses on audit risks identified by our understanding of the City’s operations. We will work with the accounting staff to identify the most effective ways to address our objectives. Communication between the members of the audit engagement team and City staff will be fluid and continuous.

6. Sample Size and Sampling Techniques:

Our audit approach will include sampling activities. Population size and the level of assurance to be derived from a particular test will dictate the sample size. We use sampling in our audit approach to compliment skilled judgment and knowledge of the particular situation. Our sample size will range normally from 25 to 60 items.

7. Automated Systems:

We will evaluate controls over the IT functions to assess control risk. We intend to test controls for purposes of reliance. Our review procedures will evaluate controls over:
 Security Management
 Logical and Physical Access
 Configuration Management
 Segregation of Duties
 Contingency Planning
In addition, we will review controls over:
 Input, processing, output, master data
 Application interface
 Data management system interface

8. Analytical Procedures:

We use analytical procedures in several aspects of our audit. Extensive knowledge and industry background are required for effective analytics, and our staff possesses the appropriate experience and knowledge for the City to benefit from these procedures.

9. Approach to be Taken in Determining Laws and Regulations Subject to Audit Test Work:

We continuously refer to specific regulations, compliance supplements, state guidelines and contracts currently in force. We perform the procedures required related to laws and regulations, using inquiries, observations and sampling techniques. Some of the laws and regulations that we believe may be applicable to the City are the requirements of the California Public Utilities Commission, Single Audit Act and other applicable laws and regulations, including the California Government Code, provisions of applicable Grant guidelines, California Constitution GANN Limit requirements, requirements of local measures, Child Care Program compliance requirements, etc.

10. Report Format:

We will meet with City Management to review report formats. Any report format changes will be made in conjunction with approval from the City Management.

11. Work Plans:

The detailed work plans will be designed to efficiently and effectively address the audit requirements of the City in accordance with generally accepted auditing standards, to perform the audit of the City’s financial records in a timely manner with minimal disruptions to office operations, and to meet the City’s timeline.

City of Guadalupe Technical Proposal

25 12. Adjusting Journal Entries:

We will discuss and explain proposed audit adjusting entries with the City’s designated Finance Department personnel prior to recording. Audit adjusting entries will be provided in a format showing the lowest level of posting detail needed for data entry on the City’s general ledger system.

13. Listing of Schedules and Tables (anticipated to be prepared by the City):

Based on preliminary inquiries made with management and City staff and review of documents, we will tailor a list of schedules, tables, and other reconciliations required for the audit. We will take into account as much as possible reconciliations already prepared by the City for day to day operations and reporting, as well as any reports that are system generated to limit the need for additional City staff hours.

The following is a listing of some of the significant reconciliations and schedules that we would normally expect the City to provide to us in assisting us in conducting our fieldwork.  Trial Balance
 Annual Financial Report Account
Roll Up Schedules
 Budget to Actual Reports
 Bank Reconciliations
 Listing of manually prepared
journal entries posted
 Summary of Investments held by
the City
 Capital Asset Schedules
 Long Term Debt Schedules
 Debt amortization schedules &
Calculations of deferred amounts
 Calculations of any debt
covenants amounts or
percentages
 Schedule of Leases
 Schedule of Expenditures of
Federal Awards
 Analysis of Deferred Inflows of
Resources and Deferred
Outflows of Resources
 Reconciliation of Receivables to
subsidiary ledgers
 Calculations for estimate of
allowance for uncollectible
accounts
 Loans Receivable Schedules
 Reconciliation of Significant
Revenue Accounts
 Utility billing Registers and Fee
schedules
 Compensated Absences
Schedules and Copies of Related
Policies
 Claims Payable Schedules
 Pension and OPEB Roll Forward &
Supporting Schedules
 GASB 54 Fund Balance Roll
Forward Schedule
 Interfund Transaction Schedules
City of Guadalupe Technical Proposal

26 The Firm maintains a variety of specialized software packages during the audit that enable us to perform an efficient, thorough, and timely audit and keeping time demands on City staff to a minimum.

Trial Balance Management and Financial Statement Preparation ProSystem Fx Engagement allows us to import and manage multiple years of trial balance data including budgetary information, create multiple account groupings, generate reports, post journal entries proposed during the audit (including GASB 34 conversion entries), and link information directly to the financial statements. This gives us the ability to:
 Generate immediate trend and other comparative analysis of trial balance and budget data prior to the start of the audit. This allows us to identify potential issues and make inquiries early in the audit
 Link the financial statements and footnotes prior to the start of the audit allowing us to have majority of the financial statements (including budgetary comparison schedules and other supplementary information) prepared at the time the trial balance is uploaded
 Audit adjustments or City adjustments provided during the audit are automatically reflected in the financial statements
Audit Request Management and Document Exchange
CCH Engagement Organizer (“Organizer”) is a virtual “Prepared by Client (PBC) List” that streamlines the process of requesting, receiving, and keeping track of documents. The Organizer is an integrated cloud-based request list that helps to facilitate the engagement through more seamless collaboration between the Firm and our clients. By utilizing the Organizer, the City can do all of the following in one secure virtual environment:
 Attach files of any type to document requests
 Easily track the status of document requests that are either pending, completed by the City, accepted by us, or rejected by us
 Access templates and documents from us that require completion  Have multiple City staff get involved and assist in the audit process  Participate in a dialog with us for questions and notes Especially with having to perform a large part of the audit remotely in 2020, and anticipated for the upcoming year, we have found that the use of the Organizer has helped our clients be always informed as to the status of their audit, and not be surprised with new requests or follow up on outstanding requests previously provided.

Computer Aided Audit Tools (CAATs)
The Firm’s data analytics software enables our Engagement Team to perform more than 150 Computer Aided Audit Tools (or “CAATs”). CCH Teammate Analytics gives us the ability to perform advanced data analysis and increase efficiency. By utilizing this software, we can:
 Immediately visualize and analyze 100% of account populations with graphs, charts and statistics to identify anomalies
 Make fewer sample selections that are targeted to problematic areas  Quickly analyze transactional data for:
o Duplicate records
o Missing transactions
o Transaction sequence
o Unusual items
 Compare excel worksheets for changes or differences
 Generate immediate testing samples
 Perform regression analysis
 Filter and extract data from City reports
Use of
Technology in
the Audit
City of Guadalupe Technical Proposal

27 Audit Planning, Risk Assessment, and Audit Programs
Our firm utilizes CCH Knowledge Coach, which is an expert system that adapts and customizes our audit approach specifically based on the City’s structure, operating environment, specific transactions, and identified risks or matters to be addressed in the audit.

The software is frequently updated for new industry trends and audit requirements. Included in the software is a continuous diagnosis of audit forms that identifies missing information, procedures, or any conflicts that need to be addressed prior to issuance of the audit report.

We have found that this audit tool greatly benefits our audit clients in the following ways:
 Removal of standardized audit steps and procedures that do not add value to the audit  Targeted audit procedures focusing on risks and accounts specific to the City’s operations
 Audit is always performed in accordance with audit standards especially the risk assessment standards
 Maximizing audit efficiency having less City staff time dedicated to gathering information or responding to inquiries by focusing on material issues  Automatic self-diagnostics ensure no audit steps are missed, guaranteeing a quality audit
Research Tools
We maintain multiple research software packages that are always kept up to date to ensure compliance with accounting and auditing standards, and are also a resources for us to provide guidance to our clients. In addition to accounting and audit literature, we have access to interactive disclosure checklists that include sample footnote disclosures and financial statements.

City of Guadalupe Technical Proposal

28 2022
Period Audit Tasks
July - Planning and Administration
 The entrance conference shall be held with City staff. The purpose of this meeting will be to discuss prior audits and the interim work to be performed. This meeting will also be used to establish overall liaison for the audits and to make arrangements for work space and other needs
 Review and evaluate the City's accounting and financial reporting.

Prepare an overall memo of recommendations, potential issues, and suggestions for improvements
 Prepare overall memo to the City confirming audit procedures, timing, and assistance
 Prepare detailed audit work plan and audit programs, audit budget and staffing schedule, and list of schedules to be prepared by the City staff
 Send the Organizer to the City that will include all request items considered to be necessary for the audit
July - Internal Control Evaluation
 Meeting with City Manager and Department Heads of other departments with large operating budgets or which have significant federal grant expenditures
 Attending City Council meetings
 Meeting with off-site locations
 Meeting with key Finance Department personnel
 Obtain and document understanding of key internal control systems through walk-throughs, interviews of staff, and review of supporting documentation
o General ledger system
o Budgeting system
o Revenue, utility billing, accounts receivable, and cash collections
o Purchasing, expenditures, accounts payable, and cash
disbursements
o Payroll
o Federal Financial Assistance
o Other systems
 Identify control risks
 Evaluate IT control environment
 Perform testing of the internal control system and evaluate the effectiveness of the City’s systems. Select large dollar and random samples of transactions in key operating systems. Sample size to meet required level for determined degree of risk. Review supporting documentation of selected transactions, evaluate adequacy of support and approvals, and conclude on degree of adherence to accuracy and compliance with City policies  Conduct fraud assessment procedures
 Assess degree of risk for material misstatement
 Provide to the City’s management a memo concerning
management letter points and identify issues, if any
Audit Schedule
City of Guadalupe Technical Proposal

29 2022
Period Audit Tasks
July - Other Tasks
 Review minutes of City Council meetings and other key committees  Perform preliminary substantive procedures, which would include tests of:
o Vendor and contractor payments
o Payroll expense
o Utility billing
o Pension and OPEB testing
o Capital asset acquisitions
o Journal entries
o Retrospective review of accounting estimates
 Financial statement database management and other setup, in addition to drafting of all necessary report templates
 Preliminary Single Audit and other compliance testing  Coordinate with City staff and prepare of all appropriate confirmation requests including:
o Bank accounts
o Investment pool accounts
o Accounts receivable
o Federal grants
o Revenue from governmental agencies
o Bond and other debts
o Pension plan
o Attorney letters
o Others, as required
 Update the Organizer with any additional requests that will be needed for the City's audit
 Provide the City with audit plan and list of year-end audit schedules  Hold progress conference with City Management
 Hold exit conference with City Management
October - Final Fieldwork
 Entrance conference with City Management
 Follow-up on all outstanding confirmations
 Verify and validate account balances by reviewing supporting documentation including invoices, vouchers, council resolutions, minutes, and other documents, as required
 Perform analytical review of revenue and expenditures. Determine reason for material differences between budget and actual  Perform a search for unrecorded liabilities by reviewing disbursements subsequent to June 30, testing terms of contractual obligations, and interviewing City staff
 Perform review of subsequent events by discussions with City Management and update all minutes of City Council and key committees
City of Guadalupe Technical Proposal

30 2022
Period Audit Tasks

- Single Audit Compliance
 Entrance conference with City Management
 Obtain Federal Financial Assistance Schedule
 Determine grants to be considered as major programs including clusters
 Perform audit tests of major grant programs and compliance with Federal Law and Regulations
 Review grant documents, select sufficient number of transactions to test for compliance of Federal Requirements
 Coordinate Single Audit efforts with the Financial Audit efforts  Communicate findings to City Management
 Other Compliance
November - Audit Reports
 Complete drafts of City’s Annual Financial Report
 Prepare draft of Single Audit Reports concerning internal control structure, compliance with laws and regulations, and administering of federal financial assistance programs
 Prepare other reports as required
 Provide revised final drafts of all required reports to the City for approval no later than November 18, 2022
December - Final City Audit Reports, Financial Statements and other reports delivered no later than December 16, 2022
- Audit Presentation to Council
January 2023 - Single Audit Report delivered no later than January 6, 2023 - Single Audit Report package submitted to Federal Audit Clearinghouse
Estimated Hours by Audit Phase
Position Planning
Interim
Fieldwork
Year End
Fieldwork Reporting Total
Partner 7 19 13 3 42
Audit Manager 6 29 32 4 71
Audit Senior 13 46 49 7 115
Professional Audit Staff - 80 73 9 162
Administrative Assistant 5 8 - 7 20
Total 31 182 167 30 410
City of Guadalupe Technical Proposal

31 Identification of Anticipated Potential Audit Problems We do not anticipate that there will be any audit problems at the City. However, the following are some areas that we will carefully investigate and monitor during our audit procedures:
 Financial Reporting:
 Review the Annual Financial Report for financial reporting conformance awards issued by CSMFO and GFOA.
 Review and evaluate degree of compliance with the various GASBs in effect.  Review degree of compliance with infrastructure obligations and regulatory provisions.
 Internal Control Structure:
 Review and evaluate the City’s internal control functions and ascertain compliance with proper internal control philosophies.
 Review computer system processes and controls and evaluate adequacy of the control environment.

Several new GASB pronouncements will become effective over the time period of this proposal. As such, specific attention will be provided to determine the proper implementation of these new pronouncements. A list of known new pronouncements with implementation dates that fall within this proposal period are as follows:
2022
 Statement 87 – Leases
 Statement 89 – Construction-period Interest
 Statement 92 – Omnibus (multiple effective date)
2023
 Statement 91 – Conduit Debt
 Statement 94 – Public-private Partnerships
 Statement 96 – Subscription-Based Information Technology Arrangements

Discussion of
Relevant
Accounting
Issues
City of Guadalupe Technical Proposal

32 Schedule of Professional Fees

Service
2022
Hours 2022 2023 2024
2025
Optional
Year
2026
Optional
Year
Financial Statements Audit 367 $ 34,870 33,940 $ 36,045 $ 36,045 $ 36,045 $ Single Audit 36 3,530 3,340 3,520 3,520 3,520
GANN Limit Agreed-upon Procedures 7 700 665 750 750 750 Total 37,945 410 $ 39,100 $ 40,315 $ 40,315 $ 40,315 $
Hours Rates Hours Rates Hours Rates Hours Rates Hours Rates Partner 42 150 $ 41 155 $ 39 160 $ 39 $160 39 $160
Audit Manager 71 120 69 125 67 130 67 130 67 130
Audit Senior 115 85 112 90 109 95 109 95 109 95
Professional Audit Staff 162 75 158 80 152 90 152 90 152 90 Administrative Assistant 20 60 20 70 19 70 19 70 19 70
Total Hours 410 400 386 386 386
Total Cost $ 40,315
2026
2022 2023 2024 Optional Year
2025
Optional Year
Position
$ 39,100 37,945 $ 40,315 $ 40,315 $
Comprehensive
Cost Bid
City of Guadalupe Technical Proposal

33 Manner of Payment:

Each Engagement Team member maintains detailed time sheets describing work performed, date of work, and amount of time spent on each task for the Engagement. The Firm will bill the City after completion of each phase of the audit and bill the City up to a maximum of 90%. The remaining 10% of the proposal amount will not be due until all final reports are delivered and accepted by the City. The City can anticipate three billings as follows:

Work Performed
% of Proposal
Amount
For interim work 45%
For year-end work 45%
At presentation and acceptance of final reports 10%
Total 100%

Rates for Additional Professional Services:

Any services outside the scope of our engagement will be promptly identified before the services are rendered. Upon mutual agreement, the out-of-scope services will be separately billed at our standard hourly rates. While it can be difficult to simply state hourly rates, as often times the needs of the client and the specific tasks directly impact the billing rates for our services, we want to provide the following information regarding our published billing rates:

Position Hourly Rate
Partner $ 200
EQR 200
Manager 150
Senior 125
Staff 100
Admin. 75

Our Standard Hourly Rates are adjusted annually by 3% for Cost of Living and Inflation Adjustments
A client relationship with the City will be of great value to our Firm and we welcome the opportunity to develop a long-term relationship with the City. We are committed to:
 Rendering the highest standard of service
 Developing a long-term working relationship dedicated to meeting the needs of the City  Assisting the City in operational issues
 Producing a quality end-product
We have the technical qualifications and experience to provide the level of service desired and expected by the City and stand ready to provide our knowledge and experience for the benefit of your organization.

We would like to express our appreciation to the City and to its Staff for allowing us the opportunity to submit a proposal to perform professional auditing services. We are available, at your convenience, to discuss any aspects of our proposal.

Thank you for allowing us to present our Firm to you.
* * * * * * * * * * * * * * * * *
Conclusion
City of Guadalupe Technical Proposal

34 References
1) City of Berkeley
 Scope of Work: Annual Comprehensive Financial Report, Gann Limit, SAS114, Measure B (Alameda County), Vehicle Registration Fee Audit (Alameda County), Due Diligence Reviews for the RDA Successor Agency
 Engagement Partner: Mitesh Desai (2020- Present), Ahmed Badawi (2008 – 2019)
 Address: 2180 Milvia Street, Berkeley, CA 94704
 Principal Contact:

Mr. Henry Oyekanmi
Finance Director
(510)981-7332
[email protected]
2) City of Antioch
 Scope of Work: Annual Comprehensive Financial Report, SAS 114, GANN Limit, Single Audit, Antioch Public Financing Authority, Antioch Area Public Facilities Financing Agency
 Engagement Partner: Mitesh Desai (2020- Present), Ahmed Badawi (2005 – 2019)
 Address: 200 H Street, Antioch, CA 94509
 Principal Contact:

Ms. Dawn Merchant
Finance Director
(925)779-6135
[email protected]
3) City of Sebastopol
 Scope of Work: Annual Comprehensive Financial Report
 Engagement Partner: Mitesh Desai (2020- Present), Ahmed Badawi (2017 – 2019)
 Address: 7120 Bodega Avenue, Sebastopol, CA 95473
 Principal Contact:

Mrs. Ana Kwong
Finance Director
(707)824-4879
[email protected]
4) City of Millbrae
 Scope of Work: Annual Comprehensive Financial Report, Single Audit, Gann Limit, SAS114, TDA, Measure A, Measure W, TDA
 Engagement Partner: Mitesh Desai (2020- Present), Ahmed Badawi (2015 – 2019)
 Address: 621 Magnolia Avenue, Millbrae, CA 94030
 Principal Contact:

Mr. Mike Sung
Finance Director
(650)259-2433
[email protected]

Appendix A
City of Guadalupe Technical Proposal

35 5) City of Calimesa
 Scope of Work: Annual Financial Report, Gann Limit, SAS114  Engagement Partner: Mitesh Desai (2020- Present), Ahmed Badawi (2013 – 2019)
 Address: 908 Park Avenue, Calimesa, CA 92320
 Principal Contact:

Ms. Bonnie Johnson
City Manager
(909)795-9801 ext. 231
[email protected]
6) City of San Luis Obispo
 Scope of Work: Annual Comprehensive Financial Report, Single Audit, Gann Limit, SAS114, Whale Rock Commission
 Engagement Partner: Ahmed Badawi (2019 – Present)
 Address: 990 Palm Street, San Luis Obispo, CA 93401
 Principal Contact:

Ms. Brigitte Elke
Finance Director
(805)781-7125
[email protected]
7) City of Lafayette
 Scope of Work: Annual Comprehensive Financial Report, Single Audit, Gann Limit, TDA, Lamorinda Fee and Finance Authority Report, Lamorinda School Bus Transportation Agency Report
 Engagement Partner: Ahmed Badawi (2020 – Present)
 Address: 3675 Mount Diablo Blvd., #210, Lafayette, CA 94549  Principal Contact:

Ms. Tracy Robinson
Administrative Services Director
(925)299-3227
[email protected]
City of Guadalupe Technical Proposal

36 Exceptions to the Contract
With regard to the Sample Agreement for Consultant Services, we would like the following items to be edited:

Appendix C, Sample Agreement for Consultant Services, Section 6. Ownership of Documents, we would like to edit the paragraph as follows:

Section 6. Ownership of Documents. Unless such property is proprietary in nature, all original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents prepared, developed or discovered by Consultant in the course of providing any services pursuant to this Agreement shall become the sole property of City and may be used, reused or otherwise disposed of by City without the permission of the Consultant. Reuse of any materials outside the scope of this Agreement shall be at the sole risk of the City.

Appendix B
City Atty Rev 8/21 1

AGREEMENT FOR CONSULTANT SERVICES

BETWEEN

THE CITY OF GUADALUPE
AND
THIS AGREEMENT FOR CONSULTANT SERVICES (the "Agreement") is made and entered into this 28th day of June 2022, by and between the CITY OF GUADALUPE, a municipal corporation ("City") and Badawi & Associates, a California ("Consultant").

In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

Section 1. Term of Agreement. Subject to the provisions of Section 19 (Termination of Agreement) of this Agreement, the term of this Agreement shall be for a period of one (1) year from the date of execution of this Agreement, as first shown above. Such term may be extended upon written agreement of both parties to this Agreement.

Section 2. Scope of Services. Consultant agrees to perform the services set forth in Exhibit A (Scope of Services) and made a part of this Agreement.

Section 3. Additional Services. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to or outside of those set forth in this Agreement or listed in Exhibit A unless such additional services are authorized in advance and in writing by the City Council or City Administrator of City. Consultant shall be compensated for any such additional services in the amounts and in the manner agreed to by the City Council or City Administrator.

Section 4. Compensation and Method of Payment.
(a) Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in Exhibit B (Compensation) and made a part of this Agreement.
(b) Each month Consultant shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month. The invoice shall detail charges by the following categories: labor (by subcategory), travel, materials, equipment, supplies, subconsultant contracts, and miscellaneous expenses. City shall independently review each invoice submitted by Consultant to determine whether the work performed, and expenses incurred, are in compliance with the provisions of this Agreement and Scope of Services. In the event that no charges or expenses are disputed, ATTACHMENT 3
City Atty Rev 8/21 2
the invoice shall be approved and paid according to the terms set forth in subsection (c).

In the event City disputes any charges or expenses, City shall return the original invoice to Consultant with specific items in dispute identified for correction and re-submission.

All undisputed charges shall be paid in accordance with this Agreement and Scope of Services.
(c) Except as to any charges for work performed or expenses incurred by Consultant, which are disputed by City, City will cause Consultant to be paid within thirty (30) days of receipt of Consultant's invoice.
(d) Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant. (e) Consultant shall have the right to suspend services if not paid in accordance with this Agreement.

Section 5. Inspection and Final Acceptance. City may inspect and accept or reject any of Consultant's work under this Agreement, either during performance or when completed, if the work is found to be defective or not in compliance with the defined Scope of Services. Acceptance of any of the Consultant's work by City shall not constitute a waiver of any of the provisions of this Agreement, including but not limited to, Sections 15 and 16, pertaining to indemnification and insurance, respectively. Consultant agrees to cooperate in any such inspection.

Section 6. Ownership of Documents. Unless such property is proprietary in nature, all original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, paper files, and other documents prepared, developed or discovered by Consultant in the course of providing any services pursuant to this Agreement shall become the sole property of City and may be used, reused or otherwise disposed of by City without the permission of the Consultant. Reuse of any materials outside the scope of this Agreement shall be at the sole risk of the City.

Any and all such documents or records shall be maintained in accordance with generally accepted accounting principles and shall be sufficiently completed and detailed so as to permit an accurate evaluation of the services provided by Consultant pursuant to this City Atty Rev 8/21 3
Agreement. Any and all such documents or records shall be maintained for three (3) years from the date of execution of this Agreement and to the extent required by laws relating to the audits of public agencies and their expenditures. (b) Any and all records or documents required to be maintained pursuant to this section shall be made available for inspection, audit and copying, upon reasonable notice during regular business hours, upon written request by City or its designated representative. Copies of such documents or records shall be provided directly to the City for inspection, audit and copying when it is practical to do so; otherwise, unless an alternative is mutually agreed upon, such documents and records shall be made available at Consultant's address indicated for receipt of notices in this Agreement. The City shall compensate the Consultant for all costs associated with providing these materials to the City.
(c) Where City has reason to believe that any of the documents or records required to be maintained pursuant to this section may be lost or destroyed due to dissolution or termination of Consultant's business, City may, by written request, require that custody of such documents or records be given to the requesting party and that such documents and records be maintained by the requesting party. Access to such documents and records shall be granted to City, as well as to its successors-in-interest and authorized representatives.

Section 8. Status of Consultant.
(a) Consultant is and shall at all times during the terms of this Agreement remain a wholly independent Consultant and not an officer, employee or agent of City.

Consultant shall have no authority to bind City in any manner, nor to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City.
(b) The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control.

Neither City nor any elected or appointed boards, officers, officials, employees or agents of City, shall have control over the conduct of Consultant or any of Consultant's officers, employees or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant's officers, employees or agents are in any manner officials, employees or agents of City. (c) Neither Consultant nor any of Consultant's officers, employees or agents shall obtain any rights to retirement, health care or any other benefits which may City Atty Rev 8/21 4
otherwise accrue to City's employees. Consultant expressly waives any claim Consultant may have to any such rights.

Section 9. Standard of Performance. Consultant represents and warrants that it has the qualifications, experience and facilities necessary to properly perform the services required under this Agreement in a thorough, competent and professional manner. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. In meeting its obligations under this Agreement, Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing services similar to those required of Consultant under this Agreement.

Section 10. Compliance With Applicable Laws, Permits and Licenses.

Consultant shall keep itself informed of and comply with all applicable federal, state and local laws, statutes, codes, ordinances, regulations and rules in effect during the term of this Agreement applicable to Consultant. Consultant shall obtain any and all licenses, permits and authorizations necessary to perform the services set forth in this Agreement. Neither City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall be liable at law or in equity as a result of any failure of Consultant to comply with this section.

Section 11. Nondiscrimination. Consultant shall not discriminate, in any way, against any person on the basis of race, color, religious creed, national origin, ancestry, sex, age, disability, marital status or sexual orientation in connection with or related to the performance of this Agreement.

Section 12. Unauthorized Aliens. Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. sections 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorney's fees, incurred by City.

Section 13. Conflicts of Interest. Consultant will comply with all conflict-ofinterest laws and regulations including, without limitation, the City’s Conflict of Interest Code (on file in the City Clerk’s Office). All officers, employees and/or agents of Consultant who will be working on behalf of the City pursuant to this Agreement, may be required to file Statements of Economic Interest with the Fair Political Practices Commission. Therefore, it is incumbent upon Consultant to notify that City of any staff changes relating to this Agreement.

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A. In accomplishing the scope of services of this Agreement, all officers, employees and/or agents of Consultant, unless as indicated in Subsection B, will be performing a very limited and closely supervised function, and, therefore, unlikely to have a conflict of interest arise. No disclosures are required for any officers, employees, and/or agents of Consultant, except as indicated in Subsection B.
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Initials
B. In accomplishing the scope of services of this Agreement, Consultant will be performing a specialized or general service for the City, and there is substantial likelihood that the Consultant’s work product will be presented, either written or orally, for the purpose of influencing a governmental decision. As a result, Consultant shall be subject to Disclosure Category “1” of the City’s Conflict of Interest Code.

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(d) Consultant shall promptly notify City should Consultant, its officers, employees, agents or sub consultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant.

However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. Consultant shall be compensated for all costs associated with complying with this section.

Section 15. Indemnification.
(a) City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "Indemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, defend, protect and hold harmless Indemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever nature, including reasonable attorney's fees and disbursements (collectively, "Claims") which Indemnitees may suffer or incur or to which Indemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of or allegedly caused by Consultant's performance of or failure to perform any services under this Agreement or by the negligent or willfully wrongful acts or omissions of Consultant, its agents, officers, directors, sub consultants or employees, committed in performing any of the services under this Agreement. (b) If any action or proceeding is brought against Indemnitees by reason of any of the matters against which Consultant has agreed to indemnify Indemnitees as provided above, Consultant, upon notice from City, shall defend Indemnitees at Consultant's expense by counsel acceptable to City, such acceptance not to be unreasonably withheld. Indemnitees need not have first paid for any of the matters to which Indemnitees are entitled to indemnification in order to be so indemnified. The insurance required to be maintained by Consultant under Section 16 shall ensure Consultant's obligations under this section, but the limits of such insurance shall not limit the liability of Consultant hereunder. The provisions of this section shall survive the expiration or earlier termination of this Agreement.
(c) The provisions of this section do not apply to Claims occurring as a result of the City's sole negligence or willfully wrongful acts or omissions.

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(d) City agrees to indemnify Consultant for any such neglect or willfully wrongful acts committed by City or its officers, agents or employees.

Section 16. Insurance. Consultant agrees to obtain and maintain in full force and effect during the term of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work provided by Consultant, its agents, representatives, or employees in performance of this Agreement. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A-:VII. All insurance policies shall be subject to approval by City as to form and content.

These requirements are subject to amendment or waiver, if so approved in writing by City Administrator. Consultant agrees to provide City with copies of required policies upon request.

Prior to the beginning of and throughout the duration of the Work, Consultant and its subconsultants shall maintain insurance in conformance with the requirements set forth below.

Consultant will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth herein, Consultant agrees to amend, supplement, or endorse the existing coverage to do so. Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to Consultant or its subconsultants in excess of the limits and coverage identified in this Agreement and which is applicable to a given loss, claim or demand, will be equally available to City.

Consultant shall provide the following types and amounts of insurance. Without limiting Consultant’s indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City:

A. Minimum Scope of Insurance: Coverage shall be at least as broad as:
(1) Insurance Services Office Form Commercial General Liability coverage (Occurrence Form CG 0001).
(2) Insurance Services Office Form No. CA 0001 covering Automobile Liability, including code 1"any auto" and endorsement CA 0025, or equivalent forms subject to written approval of City.
(3) Workers' Compensation insurance as required by the Labor Code of the State of California and Employers' Liability insurance and covering all persons providing services on behalf of the Consultant and all risks to such persons under this Agreement, along with a waiver of subrogation endorsement.
(4) Errors and omission liability insurance appropriate to the Consultant's profession.

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B. Minimum Limits of Insurance: Consultant shall maintain limits of insurance no less than:
(1) General Liability Insurance: Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $2,000,000 completed operations aggregate. The policy shall provide or be endorsed to provide that City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. This insurance and any umbrella or excess liability insurance shall be maintained for a minimum of three years or as long as there is a statutory exposure to completed operations claims, with the City and its officers, officials, employees, and agents continued as additional insured.
(2) Automobile Liability: Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. (3) Workers' Compensation and Employer's Liability: Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Consultant’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Consultant shall require each subConsultant to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subConsultant’s employees. Consultant shall submit to City. (4) Errors and Omissions Liability: $1,000,000 per claim as appropriate for the profession.
(5) Umbrella or excess liability insurance (if needed): Consultant shall obtain and maintain an umbrella or excess liability insurance that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and employer’s liability.

Such policy or policies shall include the following terms and conditions:

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• A drop-down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectable in whole or in part for any reason;
• Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.
(6) Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on a Consultant’s Pollution Liability form or other form acceptable to City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this Agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.

C. Other Provisions: Insurance policies required by this Agreement shall contain the following provisions:
(1) Notice of Cancellation: Each insurance policy required by this Agreement shall be endorsed and state the coverage shall not be suspended, voided, canceled by the insurer or other party to this Agreement, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested has been given to City. (2) Primary/noncontributing: Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
(3) City’s Rights of Enforcement: In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(4) Waiver of Subrogation: All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or City Atty Rev 8/21 10
appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City and shall require similar written express waivers. (5) Enforcement of Contract Provisions (non estoppel): Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
(6) Requirements not Limiting: Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (7) Prohibition of Undisclosed Coverage Limitations: None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (8) Separation of Insureds: A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (9) Pass through Clause: Consultant agrees to ensure that its subconsultants, subconsultants, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, subconsultants, and others engaged in the project will be submitted to City for review. (10) City’s Right to Revise Requirements: The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant a ninety (90) day advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation.

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(11) Self-insured Retentions: Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
(12) Timely Notice of Claims: Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(13) Additional Insurance: Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.

Section 17. Assignment. The expertise and experience of Consultant are material considerations for this Agreement. City has an interest in the qualifications of and capability of the persons and entities who will fulfill the duties and obligations imposed upon Consultant under the Agreement. In recognition of that interest, Consultant shall not assign or transfer this Agreement or any portion of this Agreement or the performance of any of Consultant's duties or obligations under this Agreement without the prior written consent of the City Council. Any attempted assignment shall be ineffective, null and void, and shall constitute a material breach of this Agreement, entitling City to any and all remedies at law or in equity, including summary termination of this Agreement. City acknowledges, however, that Consultant, in the performance of its duties pursuant to this Agreement, may utilize sub consultants.

Section 18. Continuity of Personnel. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant's staff assigned to perform the services required under this Agreement. Consultant shall notify City of any changes in Consultant's staff assigned to perform the services required under this Agreement, prior to any such performance.

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(c) If either Consultant or City fail to perform any material obligation under this Agreement, then, in addition to any other remedies, either Consultant or City may terminate this Agreement immediately upon written notice. (d) Upon termination of this Agreement by either Consultant or City, all property belonging exclusively to City which is in Consultant's possession shall be returned to City. Consultant shall furnish to City a final invoice for work performed and expenses incurred by Consultant, prepared as set forth in Section 4 of this Agreement.

This final invoice shall be reviewed and paid in the same manner as set forth in Section 4 of this Agreement.

Section 20. Default. In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default and may terminate this Agreement immediately by written notice to Consultant.

Section 21. Excusable Delays. Consultant shall not be liable for damages, including liquidated damages, if any, caused by delay in performance or failure to perform due to causes beyond the control of Consultant. Such causes include, but are not limited to, acts of God, acts of the public enemy, acts of federal, state or local governments, acts of the City, court orders, fires, floods, epidemics, strikes, embargoes, and unusually severe weather. The term and price of this Agreement shall be equitably adjusted for any delays due to such causes.

Section 22. Cooperation by City. All public information, data, reports and maps as are existing and available to City as public records, and which are necessary for carrying out the work as outlined in Exhibit A, shall be furnished to Consultant in every reasonable way to facilitate, without undue delay, the work to be performed under this Agreement.

Section 23. Notices. All notices required or permitted to be given under this Agreement shall be in writing and shall be personally delivered, or sent by telecopier or United States mail, postage prepaid, addressed as follows:

To City: City Administrator
City of Guadalupe
918 Obispo Street
Guadalupe, CA 93434
To Consultant: Ahmed Badawi
Badawi & Associates
2855 Telegraph Ave, Suite 312
Berkeley, CA 94705
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Notice shall be deemed effective on the date personally delivered or transmitted by facsimile or, if mailed, three (3) days after deposit of the same in the custody of the United States Postal Service.

Section 24. Authority to Execute. The person or persons executing this Agreement on behalf of the Consultant represents and warrants that they have the authority to so execute this Agreement and to bind Consultant to the performance of its obligations hereunder.

Section 25. Binding Effect. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties.

Section 26. Modification of Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Consultant and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

Section 27. Waiver. Waiver by any party to this Agreement of any term, condition or covenant of this Agreement shall not constitute a waiver of any other term, condition or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any provisions of this Agreement.

Section 28. Law to Govern; Venue. This Agreement shall be interpreted, construed and governed according to the laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Santa Barbara. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Los Angeles.

Section 29. Attorney's Fees, Costs and Expenses. In the event litigation or other proceeding is required to enforce or interpret any provision of this Agreement, the prevailing party in such litigation or other proceeding shall be entitled to any award of reasonable attorney's fees, costs and expenses, in addition to any other relief to which it may be entitled.

No statements, representations or other agreements, whether oral or written, made by any party which are not embodied herein shall be valid and binding. No amendment to this Agreement

CITY OF GUADALUPE

REQUEST FOR PROPOSALS FOR

CITY OF GUADALUPE AUDITING SERVICES
Proposal Release Date
May 9, 2022
Proposal Submittal Due Date
May 27, 2022

EXHIBIT A

CITY OF GUADALUPE, CALIFORNIA

REQUEST FOR PROPOSAL FOR AUDIT SERVICES
Table of Contents
Part 1— Audit Specifications Page Number
I. Introduction .................................................................................................................. 1 II. Description of the City .................................................................................................. 2 III. Scope of Work to be Performed ...................................................................................... 2 A. Services to be Performed by Auditors ................................................................. 2 B. Timeline Requirements ........................................................................................ 3 C. Reporting and Communication ............................................................................ 4 D. Other Considerations ........................................................................................... 4 E. Specific Deliverables to the City of Guadalupe................................................... 5 IV. City Responsibilities ...................................................................................................... 5 A. Finance Department ............................................................................................. 5 B. Report Preparation ............................................................................................... 5 V. Basis for Compensation ................................................................................................. 6 VI. Additional Provisions .................................................................................................... 6 VII. Special Terms and Conditions........................................................................................ 7 Part 2 — Proposal Requirements and Information
I. Proposal Process and Calendar ...................................................................................... 8 A. Distribution of Proposals ..................................................................................... 8 B. Proposal Submission ............................................................................................ 8 C. Proposal Review and Notifications...................................................................... 8 D. Final Selection and Notification .......................................................................... 8 E. Important Dates to Remember ............................................................................. 9 II. Proposal Requirements .................................................................................................. 9 A. Independence ....................................................................................................... 9 B. License to Practice in California .......................................................................... 9 C. Firm Qualifications and Experience .................................................................... 9 i
D. Partner, Supervisor, and Staff Qualifications and Experience........................... 10 E. Specific Audit Approach ................................................................................... 10 F. Identification of Anticipated Potential Audit Problems .................................... 11 G. Total All-Inclusive Maximum Price.................................................................. 11 H. Rates by Partner, Supervisor, and Staff Level................................................... 11 I. Ownership of City-Related Documents............................................................. 11 J. Acceptance of Proposal Contents...................................................................... 11 K. Acceptance or Rejection and Negotiation of Proposals..................................... 11 III. Evaluation Process ...................................................................................................... 12 IV. Format and Content of Proposals ............................................................................... 13 A. Title Page ........................................................................................................... 13 B. Table of Contents............................................................................................... 13 C. Letter of Transmittal .......................................................................................... 13 D. Audit Team ........................................................................................................ 13 E. Audit Scope and Provisions............................................................................... 14 F. Cost Data............................................................................................................ 14 G. Additional Data.................................................................................................. 14 Appendices
A. Format for Schedule of Professional Fees and Expenses to Support the Total AllInclusive Maximum Price B. Format for Schedule of All-Inclusive Maximum Price by Report C. Sample Copy of City "Consulting Services Agreement" includes insurance and business license requirements
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PART 1— AUDIT SPECIFICATIONS
I. INTRODUCTION
The City of Guadalupe (hereinafter referred to as "the City") is requesting proposals from qualified firms of certified public accountants for a three-year contract to audit its financial statements for the fiscal year ending June 30, 2022. The Firm will be asked to audit the City's Annual Financial Statements and complete a Single Audit report if expenditure criteria are met. At the option of the City, the audit engagement may be extended for two subsequent fiscal years by written amendment.

These audits are to be performed in accordance with generally accepted auditing standards, the standards set forth for financial and compliance audits in the U.S. General Accounting Office's (GAO) Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, the provisions of the Single Audit Act of 1984, as amended in 1996, U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments and Governmental Accounting Standards Board (GASB) Pronouncements.

During the evaluation process, the City reserves the right, where it may serve the City of Guadalupe’s best interest, to request additional information or clarifications from proposers, or to allow corrections of errors or omissions. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Guadalupe and the firm selected.

To be considered, one (1) original and five (5) hard copies of the proposal must be received at the Office of the Finance Director, 918 Obispo Street, Guadalupe, CA 93434 no later than 3:00 pm May 27, 2022. It is anticipated that the selected firm will be notified no later than the week of June 3, 2022. Failure to provide the required number of copies may render your proposal as noncompliant.

A copy of this request for proposal and the City's most recent Audited Financials Report can be found on the City's website www.ci.guadalupe.ca.us. All inquiries relating to this Request for Proposal should be submitted to:

Lorena Zarate, Finance Director
City of Guadalupe
918 Obispo Street,
Guadalupe, CA 93434
(805) 356-3895
[email protected]
II. DESCRIPTION OF THE CITY
The City of Guadalupe was incorporated in 1946 as a general law city and operates under a City Council/City Administrator form of government. It is governed by an elected five-member council with each member also serving as a member of the governing board for the RDA Successor Agency.

The City is located in the Northwest corner of Santa Barbara County. The City encompasses approximately 1.3 square miles with a population of 7,205 based on the January 1, 2015 State of California Department of Finance estimate.

The City's fund structure includes: General Fund (1), Special Revenue Funds (21), Debt Service Funds (2), Capital Projects Funds (2), Proprietary Funds - Enterprise (4) and Fiduciary Funds (1).

The estimated budget for FY 2021-2022 is $22.3 million. The budget of the General Fund is $6.7 million.

The City's financial statements are prepared in conformance with GASB 34 and have been audited by Badawi & Associates Certified Public Accountants for the last 5 years.

The City uses MOM software for general ledger, budget, accounts payable, payroll and accounts receivable.

III. SCOPE OF WORK TO BE PERFORMED
A. Services to be performed by Auditors.

1. In general, the auditors will perform a financial and compliance audit to determine (a) whether the combined financial statements of the City fairly present the financial position and the results of financial operations in accordance with generally accepted accounting principles, and (b) whether the City has complied with laws and regulations that may have a material effect upon the financial statements.

2. The auditors will examine the City's internal accounting controls and accounting procedures and render written reports of their findings and recommendations to the City Administrator. The examination shall be made and reports rendered in accordance with generally accepted government auditing standards. In addition, the auditors shall communicate to the City Administrator and Finance Director any reportable conditions found during the audit that can be defined as either a significant or material weakness in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statement.

3. Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the City Administrator.

4. Auditors shall include all funds of the City and any component unit(s).

5. Auditors shall submit a report of their examination of the component units' financial statements for each such fiscal year, which shall include such component unit, general purpose and supplementary financial statements, notes to the financial statements and an opinion as to the fairness of their presentation in conformity with generally accepted accounting principles, applicable to the various funds or state the reasons for any exceptions to said principles.

6. Under the requirements of the Federal Government's program covering a single audit for all federal grant funds, auditors shall conduct an audit in accordance with the Single Audit Act Amendments of 1996 and in generally accepted auditing standards as well as generally accepted governmental auditing standards.

7. Auditors shall submit a management letter setting forth their findings and/or recommendations on those matters noted and observed during the conduct of the examination of the financial records and developed within the scope usually associated with such an examination relating to, but not limited to, a) improvement in systems of internal control, b) improvement in accounting system, c) apparent noncompliance with laws, rules, and regulations, and d) any other material matter coming to the attention of the firm during the conduct of the examination.

B. Timeline Requirements

1. Auditors shall schedule with the Finance Director for the Fiscal Year 2021-2022 Audit.

2. All City books must be closed and ready for audit by the mutually agreed upon start date. City staff shall prepare detailed lead sheets and account reconciliations for the auditors.

3. Field work shall be completed no later than October 28, 2022 and a draft Audited Financial Statements Report, presented according to the timetable listed under "Specific Deliverables to the City of Guadalupe" shall be prepared and delivered to the City Administrator.

4. The Entrance Conference, Progress Reporting, and Exit Conference should be held within the time frames indicated on the schedule shown below:
i. Entrance Conference with Finance Director to discuss work to be performed, establish overall liaison for
audit and arrangements for space and other needs of
the auditor.

Prior to start
of audit field
work
ii. Progress conference with Finance Director
to discuss the year-end work to be performed.

Midway
through audit
field work
iii. Exit conference with City Administrator and Finance Director, to summarize the results of the field work
and to review significant findings.

At the
conclusion of
the year-end
audit field
work
iv Meeting prior to presentation to Council with twoperson City Council Sub-Committee to review financials and discuss significant findings.

Before the
presentation
to Council
C. Reporting and Communication

1. The auditors will meet continuously during the on-site field work process with the Finance Director to discuss preliminary audit findings and management recommendations.

2. Prior to issuing their final reports, the auditors will meet with the City Administrator with all audit reports to be addressed to the City Council.

3. The auditors may be consulted occasionally throughout the year as an information resource. Auditors may be asked to provide guidance on implementation of Government Account Standards Board (GASB) requirements and specifics of federal and state regulations as they may affect local government accounting. In addition, the auditors may be asked to assist with the implementation of new pronouncements.

D. Other Considerations

1. All working papers and reports must be retained, at the auditor's expense, for a minimum of three (3) years, unless the firm is notified in writing by the City of Guadalupe of the need to extend the retention period.

2. The auditors will be required to make working papers available upon request to the appropriate parties. In addition, the fnm shall respond to the reasonable inquiries of success auditors and allow review of working papers relating to matters of continuing accounting significance.

3. Throughout the year, the auditor will provide financial advice and counsel on matters occurring that would affect the annual report.

4. The audit partner/manager will be required to attend a City Council meeting to present the audit and explain or clarify financial statements or accounting requirements.

E. Specific Deliverables to the City of Guadalupe
Reports Due Date Qty.

Audit of the general purpose financial
statements and draft of the Audited
Financial Statements
No later than
November 18, 2022
1 Electronic
Final Audited Financial Statements
document
No later than
December 16, 2022
1 Electronic
15 Bound
Single Audit Report No later than
January 6, 2023
1 Electronic
7 Bound
Management Report No later than
December 16, 2022
1 Electronic
7 Bound
IV. CITY RESPONSIBILITIES
A. Finance Division

1. Finance Division staff will prepare the final closing of the books including any auditor adjusting entries or changes to the financial statements as well as providing balance sheets for all funds and groups, statements of revenue and expenditures for all funds including detailed subsidiary ledgers.

2. Finance Division staff will produce the transmittal letter and MD & A.

3. Finance Division staff will produce the confirmation letters that are mailed by the auditors.

4. Finance Division staff will be available to assist the auditors in locating records or preparing audit schedules. All requests from the auditors will be directed to the City Administrator.

5. Finance Division staff will provide the auditors with reasonable workspace to include desks and chairs as well as access to telephones, facsimile machines, and photocopying machines.

B. Report Preparation

1. The auditors will prepare a draft copy of the Audited Financial Statements for review.

2. Final preparation and printing of the Audited Financial Statements will be the responsibility of the auditors.

3. Preparation, editing, and printing of all other reports as indicated in Part I, Section III (E) Specific Deliverables to the City of Guadalupe, will be the responsibility of the auditors.

4. Finance Division staff will produce the confirmation letters that are mailed by the auditors.

V. BASIS FOR COMPENSATION
A. The City will pay the auditors for the services described in Part I, Section III (Scope of Work to be Performed) that do not exceed the amount contained within a signed agreement between the City and the Audit Firm. For additional services required after the inception of the agreement, written approval by the City shall be required in advance of such services being rendered. The fee for such services shall be paid based on the auditor's quoted hourly rates.

B. The City shall receive all final opinions and reports for the City of Guadalupe financial statements no later than the December 16 of each year as outlined in Section III (E) "Specific Deliverables to the City of Guadalupe" barring any unforeseen City delays. If delay of deliverables is a result of the audit firm/consultant, a 1% reduction in fees for every day beyond the applicable deadline shall be taken. Final reports for Grants and Agency programs shall be completed in time to meet required submission dates.

VI. ADDITIONAL PROVISIONS
A. Upon notice of intent to award contract, the successful contractor shall enter into a Consulting Services Agreement with the City of Guadalupe. A sample of such a Consulting Services Agreement is attached hereto as Appendix C.

B. No officer, agent, or employee of the City and no member of its governing bodies shall have any financial interest, direct or indirect, in this agreement or the proceeds thereof. No officer, agent, or employee of the auditors shall serve on a City committee or hold any such position which is incompatible with such person's duties or obligations or other relationship to this agreement.

C. Time is of the essence in each and all provisions of this agreement.

D. Pursuant to the Single Audit Act of 1984, as amended in 1996, any state or federal agency shall have access to the auditor's work papers for purposes of review. All working papers and reports must be retained, at the auditor's expense, for a minimum of three (3) years, unless the firm is notified in writing by the City of Guadalupe of the need to extend the retention period. The auditors shall make their working papers available to successors. The auditor will also be required to make working papers available, upon request, to the following parties or their designees:

1. City of Guadalupe

2. Department of Housing and Urban Development

3. U.S. General Accounting Office (GAO)

4. Parties designated by the federal or state governments or by the City of Guadalupe as part of an audit quality review process.

5. Auditor of entities of which the City of Guadalupe is a sub-recipient of grant funds.

6. Auditor of entities of which the City of Guadalupe is a component unit.

In addition, the audit firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance.

VII. SPECIAL TERMS AND CONDITIONS
A. Invoices received from the vendor will be processed no sooner than thirty (30) days from receipt.

B. The City is not liable for any pre-contractual expenses incurred by any bidder. In addition, no bidder shall include any such expenses as part of the price proposed to conduct the operation.

C. The City reserves the right to withdraw the RFP at any time without prior notice.

Further, the City makes no representations that any agreement will be awarded to any bidder responding to this RFP. The City expressly reserves the right to postpone action regarding this RFP for its own convenience and to reject any and all proposals in response to this RFP without indicating reasons for such rejection.

D. The City is not responsible for oral statements made by any of its employees or agents concerning this RFP. If the bidder requires specific information, the bidder must make the request in writing as instructed in the RFP.

E. All responses to the RFP shall become the property of the City and a matter of public record. Responders must identify all copyrighted material, trade secrets or other proprietary information that the responder claims are exempt from disclosure by the California Public Records Act. In the event a responder claims such exemption, the responder must state in the response that:
"The responder will indemnify the City and hold it harmless from any claim or liability and defend any action brought against the City for its refusal to disclose copyrighted material, trade secrets, or other proprietary information to any person making a request thereof"
Failure to include such a statement shall constitute waiver of the responder's right to exemption from disclosure and authority for the City to provide a copy of the proposal or any part thereof to the requestor.

F. The individual(s) preparing and submitting the proposal must state they possess the authority to bind the firm to the terms of the RFP.

G. All questions regarding this RFP should be made in writing and emailed to:
[email protected]
PART 2 — PROPOSAL REQUIREMENTS AND INFORMATION
I. PROPOSAL PROCESS AND CALENDAR
A. Distribution of Proposals
Request for Proposals shall be available on the City of Guadalupe website, www.ci.guadalupe.ca.us on May 9, 2022.

B. Proposal Submission
Proposals for the City of Guadalupe audit must be received no later than 3:00 pm May 27, 2022. Proposals submitted via facsimile or by electronic mail will not be accepted. A total of one (1) original and five (5) copies must be submitted to the following:

City of Guadalupe
Lorena Zarate, Finance Director
918 Obispo Street
Guadalupe, CA 93434
(805) 356-3895
[email protected]
Proposals must be sealed and show the following information on the outside of the package in the lower left corner: audit firm's name, address, and RFP Title. Late or incomplete proposals will not be considered.

C. Proposal Review and Notification
The City Administrator and Finance Director will review and evaluate each proposal submitted. It is anticipated that the proposal review process will be completed the week of June 3, 2022.

D. Final Selection and Notification
The City anticipates sending written notification to the selected firm by the week of June 6, 2022.

E. Important Dates to Remember
May 9, 2022 RFP Available
May 27, 2022
Deadline for Proposal
Submittal
June 6, 2022 (tentative) Selection Notification
June 28, 2022 (tentative) Report to City Council
After June 1, 2022 but
not later than October 28,
2022 Commence Field Work

PROPOSAL REQUIREMENTS
A. Independence
The audit firm should provide an affirmative statement that it is independent of the City of Guadalupe as defined by generally accepted auditing standards.

Moreover, the firm must have no conflict of interest with regard to any other work performed for the entity being audited. It is understood that the services performed by the auditors are in the capacity of independent contractors and not as an officer, agent, or employee of the City of Guadalupe.

B. License to Practice in California
The audit firm should provide an affirmative statement indicating that the firm and all assigned key professional staff are properly licensed to practice in California. The audit firm will also be required to obtain a business license with the City.

C. Firm Qualifications and Experience

1. The proposal should state the size of the firm, the size of the firm's governmental audit staff, the location of the office from which the work on this engagement is to be performed, and the number and nature of the staff to be so employed on a part-time basis. Please indicate whether any members of the audit team assigned to the City are reviewers in the California Society of Municipal Finance Officers Certificate of Achievement for Excellence in Financial Reporting program.

2. The audit firm shall submit a copy of the report on its most recent external quality control review, with a statement whether that quality control review included a review of specific government engagements.

3. The audit fnm shall provide information on the results of any federal or state desk reviews or field reviews of its audits during the past three (3) years. In addition, the audit firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations.

4. For the audit firm's office assigned responsibility for the audit, list the most significant engagements (maximum of 5) performed in the last five years that are similar to the engagement described in this request for proposal. These engagements should be ranked on the basis of total staff hours. The audit firm shall state experience with clients issuing Financial Statements under GASB 34. Indicate the scope of work, date engagement partners, total hours, and the name and telephone number of the principal client contact.

D. Partner, Supervisory, and Staff Qualifications and Experience The audit firm shall identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists, who would be assigned to the engagement and indicate whether each such person is licensed to practice as a certified public accountant in California. The audit firm should also provide information on the governmental auditing experience, including the scope of audit services requested by the City, of each person, and information on relevant continuing professional education for the past three (3) years and membership in professional organizations relevant to the performance of this audit.

The audit firm should provide as much information as possible, including resumes, regarding the number, qualifications, experience and training of the specific staff to be assigned to this agreement. The audit form should also indicate how the quality of staff over the term of the agreement will be assured.

Engagement partners, managers, other supervisory staff, and specialists may be changed if those personnel leave the firm, are promoted, or are assigned to another office. These personnel may also be changed for other reasons with the express prior written permission of the City of Guadalupe. However, in either case, the City of Guadalupe reserves the right to approve or reject replacements. This shall also apply to consultants and firm specialists mentioned in response to this request for proposal.

Other audit personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience.

E. Specific Audit Approach
The proposal should set forth a work plan, including an explanation of the audit methodology to be followed, to perform the services required in Part I, Section III of this request for proposal.

F. Identification of Anticipated Potential Audit Problems The proposal should identify and describe any anticipated potential audit problems and the adoption of new laws or accounting audit principles that might effect the audit and the firm's approach to addressing these problems and any special assistance that will be requested from the City of Guadalupe.

G. Total All-Inclusive Maximum Price
The proposal should contain all pricing information relative to performing the audit engagement as described in this request for proposal. The total all-inclusive maximum price to be proposed is to contain all direct and indirect costs including all out-of-pocket expenses.

H. Rates by Partner, Supervisor, and Staff Level Times Hours Anticipated for Each
The proposal should include a schedule of professional fees and expenses, as presented in the format shown in Appendix A, which supports the total allinclusive maximum price in the format shown in Appendix B.

I. Ownership of City-Related Documents
All property rights, including publication rights of all reports produced by proposer in connection with services performed under this agreement shall be vested in the City of Guadalupe. The proposer selected shall not publish or release any of the results of its examinations without the express written permission of the City of Guadalupe City Administrator.

J. Acceptance of Proposal Contents
After an audit firm is selected by the City, the contents of the submitted proposal shall become a contractual obligation. The successful proposer will be required to execute a standard consultant agreement with the City as exampled in Appendix C. Failure of the audit firm to agree to include the proposal as part of the contractual agreement may result in cancellation of the award. The City reserves the right to reject those parts that do not meet with the approval of the City.

K. Acceptance or Rejection and Negotiation of Proposals The City reserves the right to reject any or all proposals, to waive non-material irregularities or information in the request for proposal, and to accept or reject any item or combination of items. By requesting proposals, the City is in no way obligated to award a contract or to pay expenses of the proposing firms in connection with the preparation or submission of a proposal. Furthermore, the City reserves the right to reject any and all proposals prior to the execution of the contract(s), with no penalty to the City of Guadalupe. In addition, if the City elects to reject all of the proposals, it reserves the right to select one at random to negotiate a contract for services. All requests for proposals received by the City will remain open, valid and subject to acceptance for a period of six months.

III. EVALUATION PROCESS
The proposals for the City's audit will be evaluated by the City Administrator and Finance Director. Evaluation considerations will include the following:

A. Responsiveness of the proposal in clearly stating the understanding of the work to be performed and in demonstrating the intention and ability to perform the work.

B. Cost. Although a significant factor, cost will not be the only factor in the selection of an audit firm.

C. Auditors' experience in conducting audits of cities of similar nature, size, and complexity, and the auditors' commitment to maintaining technical expertise in the municipal financial environment.

D. Technical experience and professional qualifications of the audit team. The number of key and supervisory personnel who will directly participate in the audit will be a consideration.

E. Size, structure and location of the firm's office from which the audit work is to be done.

The City is looking for a highly qualified team that is able to meet the due dates specified in this document, and it expects that same team (wherever possible) to complete any successive year's engagements.

F. Auditors' experience in complying with applicable federal and state regulations relating to non-discrimination of an affirmative action program for equal employment opportunity.

G. Ability of the firm in providing optional services such as special studies, system review and other services. Examples of such services performed for other client cities will be helpful.

IV. FORMAT AND CONTENT OF PROPOSAL
A. Title Page
The title page should include the request for proposal subject and number, the name of the proposer's firm, local address, telephone number, name of contact person, and date.

B. Table of Contents
Include a clear identification of the material by section and by page number.

C. Letter of Transmittal

1. State whether the firm is local, national, or international.

2. Give the location of the office from which the work is to be done and the number of partners, managers, supervisors, seniors, and other professional staff employed at that office.

3. Describe the range of activities performed by the local office such as audit, accounting, or management services.

4. Describe the local office's recent auditing experiences similar to the type of audits requested and give the names and telephone numbers of client officials responsible for five of the audits listed.

D. Audit Team

1. Describe the composition of the audit team, including staff from other than the local office, and consultants. Describe the commitment of the firm to providing the same audit team on subsequent audits. Include resumes of each person so identified.

2. Identify the supervisors and consultants who will work on the audit and include resumes of each person so identified.

3. Identify any members of the audit team who are certified CAFR reviewers in the GFOA or California Society of Municipal Finance Officers (CSMFO) Certificate of Excellence in Financial Reporting programs.

E. Audit Scope and Provisions
Describe the scope of the required services to be provided and outline a plan on how such services will be provided. Please include depth of work, staffing, and time estimates. Proposers should list all reports including management letters that are to be issued, the points to be addressed by reports, and the estimated completion dates.

F. Cost Data
Indicate the total hours and hourly rates by staff classification and the resulting all-inclusive maximum fee (not to exceed total) for which the requested work will be done for each of the specific deliverables identified in this Request for Proposal. Fees must include all anticipated costs including travel, per diem, and out-of-pocket expenses.

G. Additional Data
Data not specifically requested should not appear in the foregoing sections, but any additional information considered essential to the proposal may be presented at this section.

Schedule of Professional
Fees and Expenses to Support
the Total All-Inclusive
Maximum Price Hours
Standard Hourly
Rate
Quoted Hourly
Rates Total
Partner $ $
Manager $ $
Supervisory Staff $ $
Other (Specify) $ $
Sub-Total
Out-of- Pocket Expenses
Total

APPENDIX A
All-Inclusive Maximum
Price by Report FY 2021-22 FY 2022-23 FY 2023-24
Optional Years
FY 2024-25 FY 2025-26
City $ $ $ $ $
Single Audit $ $ $ $ $
Total $ $ $ $ $

APPENDIX B

AGREEMENT FOR CONSULTANT SERVICES

BETWEEN

THE CITY OF GUADALUPE
AND
______________________________
THIS AGREEMENT FOR CONSULTANT SERVICES (the "Agreement") is made and entered into this _____ day of______________ 2022, by and between the CITY OF GUADALUPE, a municipal corporation ("City") and ___________ , a California ("Consultant").

In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

Section 1. Term of Agreement. Subject to the provisions of Section 19 (Termination of Agreement) of this Agreement, the term of this Agreement shall be for a period of three (3) years from the date of execution of this Agreement, as first shown above. At the option of the City, the audit engagement may be extended for two (2) subsequent fiscal years upon written agreement of both parties to this Agreement.

Section 2. Scope of Services. Consultant agrees to perform the services set forth in Exhibit A (Scope of Services) and made a part of this Agreement.

Section 3. Additional Services. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to or outside of those set forth in this Agreement or listed in Exhibit A, unless such additional services are authorized in advance and in writing by the City Council or City Administrator of City.

Consultant shall be compensated for any such additional services in the amounts and in the manner agreed to by the City Council or City Administrator.

Section 4. Compensation and Method of Payment.
(a) Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in Exhibit B (Compensation) and made a part of this Agreement.
(b) Each month Consultant shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month. The invoice shall detail charges by the following categories: labor (by subcategory), travel, materials, equipment, supplies, sub-consultant contracts and miscellaneous expenses. City shall independently review each invoice submitted by Consultant to determine whether the work performed and

APPENDIX C
SAMPLE
expenses incurred are in compliance with the provisions of this Agreement and Scope of Services. In the event that no charges or expenses are disputed, the invoice shall be approved and paid according to the terms set forth in subsection (c). In the event City disputes any charges or expenses, City shall return the original invoice to Consultant with specific items in dispute identified for correction and re-submission. All undisputed charges shall be paid in accordance with this Agreement and Scope of Services. (c) Except as to any charges for work performed or expenses incurred by Consultant, which are disputed by City, City will cause Consultant to be paid within fortyfive (45) days of receipt of Consultant's invoice. (d) Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant. (e) Consultant shall have the right to suspend services if not paid in accordance with this Agreement.

Acceptance of any of the Consultant's work by City shall not constitute a waiver of any of the provisions of this Agreement, including but not limited to, Sections 15 and 16, pertaining to indemnification and insurance, respectively. Consultant agrees to cooperate in any such inspection.

Section 6. Ownership of Documents. All original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents prepared, developed or discovered by Consultant in the course of providing any services pursuant to this Agreement shall become the sole property of City and may be used, reused or otherwise disposed of by City without the permission of the Consultant. Reuse of any materials outside the scope of this Agreement shall be at the sole risk of the City.

Section 7. Consultant's Books and Records.
(a) Consultant shall maintain any and all documents and records demonstrating or relating to Consultant's performance of services pursuant to this Agreement. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, or other documents or records evidencing or relating to work, services, expenditures and disbursements charged to City pursuant to this Agreement. Any and all such documents or records shall be maintained in accordance with generally accepted accounting principles and shall be sufficiently completed and detailed so as to permit an accurate evaluation of the services provided by Consultant pursuant to this Agreement. Any and all such documents or records shall be maintained for three (3) years from the date of execution of this Agreement and to the extent required by laws relating to the audits of public agencies and their expenditures.
(b) Any and all records or documents required to be maintained pursuant to this section shall be made available for inspection, audit and copying, upon reasonable notice during regular business hours, upon written request by City or its designated representative.

Copies of such documents or records shall be provided directly to the City for inspection, audit and copying when it is practical to do so; otherwise, unless an alternative is mutually agreed upon, such documents and records shall be made available at Consultant's address indicated for receipt of notices in this Agreement. The City shall compensate the Consultant for all costs associated with providing these materials to the City. (c) Where City has reason to believe that any of the documents or records required to be maintained pursuant to this section may be lost or destroyed due to dissolution or termination of Consultant's business, City may, by written request, require that custody of such documents or records be given to the requesting party and that such documents and records be maintained by the requesting party. Access to such documents and records shall be granted to City, as well as to its successors-in-interest and authorized representatives.

Section 8. Status of Consultant.
(a) Consultant is and shall at all times during the terms of this Agreement remain a wholly independent Consultant and not an officer, employee or agent of City. Consultant shall have no authority to bind City in any manner, nor to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City.
(b) The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any elected or appointed boards, officers, officials, employees or agents of City, shall have control over the conduct of Consultant or any of Consultant's officers, employees or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant's officers, employees or agents are in any manner officials, employees or agents of City.
(c) Neither Consultant nor any of Consultant's officers, employees or agents shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City's employees. Consultant expressly waives any claim Consultant may have to any such rights.

Section 10. Compliance With Applicable Laws, Permits and Licenses.

A. In accomplishing the scope of services of this Agreement, all officers, employees and/or agents of Consultant, unless as indicated in Subsection B, will be performing a very limited and closely supervised function, and, therefore, unlikely to have a conflict of interest arise. No disclosures are required for any officers, employees, and/or agents of Consultant, except as indicated in Subsection B. ____________
Initials
B. In accomplishing the scope of services of this Agreement, Consultant will be performing a specialized or general service for the City, and there is substantial likelihood that the Consultant’s work product will be presented, either written or orally, for the purpose of influencing a governmental decision. As a result, Consultant shall be subject to Disclosure Category “1” of the City’s Conflict of Interest Code.

Section 14. Confidential Information; Release of Information. (a) All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the City Administrator, except as may be required by law. (b) Consultant, its officers, employees, agents or subconsultants, shall not, without prior written authorization from the City Administrator or unless requested by the City Attorney of City, voluntarily provide declarations, letters of support, testimony at depositions, responses to interrogatories or other information concerning the work performed under this Agreement. A response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. (c) If Consultant, or any officer, employee, agent or subconsultant of Consultant, provides any information or work product in violation of this section, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney's fees, caused by or incurred as a result of Consultant's conduct. (d) Consultant shall promptly notify City should Consultant, its officers, employees, agents or sub consultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

Consultant shall be compensated for all costs associated with complying with this section.

Section 15. Indemnification.
(a) City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "Indemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, defend, protect and hold harmless Indemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever nature, including reasonable attorney's fees and disbursements (collectively, "Claims") which Indemnitees may suffer or incur or to which Indemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of or allegedly caused by Consultant's performance of or failure to perform any services under this Agreement or by the negligent or willfully wrongful acts or omissions of Consultant, its agents, officers, directors, sub consultants or employees, committed in performing any of the services under this Agreement.
(b) If any action or proceeding is brought against Indemnitees by reason of any of the matters against which Consultant has agreed to indemnify Indemnitees as provided above, Consultant, upon notice from City, shall defend Indemnitees at Consultant's expense by counsel acceptable to City, such acceptance not to be unreasonably withheld. Indemnitees need not have first paid for any of the matters to which Indemnitees are entitled to indemnification in order to be so indemnified. The insurance required to be maintained by Consultant under Section 16 shall ensure Consultant's obligations under this section, but the limits of such insurance shall not limit the liability of Consultant hereunder. The provisions of this section shall survive the expiration or earlier termination of this Agreement. (c) The provisions of this section do not apply to Claims occurring as a result of the City's sole negligence or willfully wrongful acts or omissions. (d) City agrees to indemnify Consultant for any such neglect or willfully wrongful acts committed by City or its officers, agents or employees.

Section 16. Insurance. CONTRACTOR agrees to obtain and maintain in full force and effect during the term of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work provided by CONTRACTOR, its agents, representatives or employees in performance of this Agreement.

Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A-:VII. All insurance policies shall be subject to approval by City as to form and content. These requirements are subject to amendment or waiver, if so approved in writing by City Administrator.

CONTRACTOR agrees to provide City with copies of required policies upon request. Prior to the beginning of and throughout the duration of the Work, CONTRACTOR and its subcontractors shall maintain insurance in conformance with the requirements set forth below. CONTRACTOR will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth herein, CONTRACTOR agrees to amend, supplement or endorse the existing coverage to do so. CONTRACTOR acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to CONTRACTOR or its subcontractors in excess of the limits and coverage identified in this Agreement and which is applicable to a given loss, claim or demand, will be equally available to CITY.

CONTRACTOR shall provide the following types and amounts of insurance.

Without limiting CONTRACTOR’s indemnification of CITY, and prior to commencement of Work, CONTRACTOR shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to CITY:

A. Minimum Scope of Insurance: Coverage shall be at least as broad as:
(1) Insurance Services Office Form Commercial General Liability coverage (Occurrence Form CG 0001).
(2) Insurance Services Office Form No. CA 0001 covering Automobile Liability, including code 1"any auto" and endorsement CA 0025, or equivalent forms subject to written approval of City.
(3) Workers' Compensation insurance as required by the Labor Code of the State of California and Employers' Liability insurance and covering all persons providing services on behalf of the CONTRACTOR and all risks to such persons under this Agreement, along with a waiver of subrogation endorsement.
(4) Errors and omission liability insurance appropriate to the CONTRACTOR's profession.

B. Minimum Limits of Insurance: CONTRACTOR shall maintain limits of insurance no less than:
(1) General Liability Insurance: CONTRACTOR shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $2,000,000 completed operations aggregate. The policy shall provide or be endorsed to provide that CITY and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. This insurance and any umbrella or excess liability insurance shall be maintained for a minimum of three years or as long as there is a statutory exposure to completed operations claims, with the City and its officers, officials, employees, and agents continued as additional insured. (2) Automobile Liability: CONTRACTOR shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONTRACTOR arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. (3) Workers' Compensation and Employer's Liability: CONTRACTOR shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for CONTRACTOR’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, CONTRACTOR shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. CONTRACTOR shall submit to CITY. (4) Errors and Omissions Liability: $1,000,000 per claim as appropriate for the profession.
(5) Umbrella or excess liability insurance (if needed): CONTRACTOR shall obtain and maintain an umbrella or excess liability insurance that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop-down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectable in whole or in part for any reason;
• Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.
(6) Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on a CONTRACTOR’s Pollution Liability form or other form acceptable to CITY providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate.

All activities contemplated in this Agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.

C. Other Provisions: Insurance policies required by this Agreement shall contain the following provisions:
(1) Notice of Cancellation: Each insurance policy required by this Agreement shall be endorsed and state the coverage shall not be suspended, voided, canceled by the insurer or other party to this Agreement, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested has been given to City. (2) Primary/noncontributing: Coverage provided by CONTRACTOR shall be primary and any insurance or self-insurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of CITY before the CITY’s own insurance or self-insurance shall be called upon to protect it as a named insured.
(3) City’s Rights of Enforcement: In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONTRACTOR or CITY will withhold amounts sufficient to pay premium from CONTRACTOR payments. In the alternative, CITY may cancel this Agreement.
(4) Waiver of Subrogation: All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONTRACTOR or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONTRACTOR hereby waives its own right of recovery against CITY, and shall require similar written express waivers. (5) Enforcement of Contract Provisions (non estoppel): CONTRACTOR acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONTRACTOR of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.
(6) Requirements not Limiting: Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the CONTRACTOR maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.
(7) Prohibition of Undisclosed Coverage Limitations: None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing. (8) Separation of Insureds: A severability of interests provision must apply for all additional insureds ensuring that CONTRACTOR’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (9) Pass through Clause: CONTRACTOR agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by CONTRACTOR, provide the same minimum insurance coverage and endorsements required of CONTRACTOR. CONTRACTOR agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. CONTRACTOR agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to CITY for review. (10) City’s Right to Revise Requirements: The CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONTRACTOR a ninety (90) day advance written notice of such change. If such change results in substantial additional cost to the CONTRACTOR, the CITY and CONTRACTOR may renegotiate CONTRACTOR’s compensation.
(11) Self-insured Retentions: Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY.
(12) Timely Notice of Claims: CONTRACTOR shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONTRACTOR’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(13) Additional Insurance: CONTRACTOR shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.

City acknowledges, however, that Consultant, in the performance of its duties pursuant to this Agreement, may utilize sub consultants.

Section 19. Termination of Agreement.
(a) City may terminate this Agreement, with or without cause, at any time by giving thirty (30) days' written notice of termination to Consultant. In the event such notice is given, Consultant shall cease immediately all work in progress. (b) Consultant may terminate this Agreement at any time upon thirty (30) days' written notice of termination to City.
(c) If either Consultant or City fail to perform any material obligation under this Agreement, then, in addition to any other remedies, either Consultant or City may terminate this Agreement immediately upon written notice.
(d) Upon termination of this Agreement by either Consultant or City, all property belonging exclusively to City which is in Consultant's possession shall be returned to City.

Consultant shall furnish to City a final invoice for work performed and expenses incurred by Consultant, prepared as set forth in Section 4 of this Agreement. This final invoice shall be reviewed and paid in the same manner as set forth in Section 4 of this Agreement.

To City: City Administrator
City of Guadalupe
918 Obispo Street
Guadalupe, CA 93434
To Consultant:

Notice shall be deemed effective on the date personally delivered or transmitted by facsimile or, if mailed, three (3) days after deposit of the same in the custody of the United States Postal Service.

Section 25. Binding Effect. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties.

Section 27. Waiver. Waiver by any party to this Agreement of any term, condition or covenant of this Agreement shall not constitute a waiver of any other term, condition or covenant.

Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any provisions of this Agreement.

In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Los Angeles.

Section 30. Entire Agreement. This Agreement, including the attached exhibits, is the entire, complete, final and exclusive expression of the parties with respect to the matters addressed therein and supersedes all other agreements or understandings, whether oral or written, or entered into between Consultant and City prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any party which are not embodied herein shall be valid and binding. No amendment to this Agreement shall be valid and binding unless in writing duly executed by the parties or their authorized representatives.

Section 31. Severability. If a term, condition or covenant of this Agreement is declared or determined by any court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall not be affected thereby, and the Agreement shall be read and construed without the invalid, void or unenforceable provision(s).

Section 32. Preparation of Agreement. This Agreement is the product of negotiation and preparation by and among the parties and their respective attorneys. The parties, therefore, expressly acknowledge and agree that this Agreement shall not be deemed prepared or drafted by one party or another, or any party's attorney, and will be construed accordingly.

CITY: CONSULTANT:

CITY OF GUADALUPE
By:______________________________ By:_________________________________ Ariston Julian, Mayor
Title:_______________________________
APPROVED AS TO FORM:

By:_________________________________
__________________________________ Title:_______________________________ Philip Sinco, City Attorney
City of Guadalupe Technical Proposal
32 Schedule of Professional Fees
Service
2022
Hours 2022 2023 2024
2025
Optional
Year
2026
Optional
Year
Financial Statements Audit 367 $ 34,870$ 36,045$ 36,045$ 36,045 33,940 $ Single Audit 36 3,530 3,340 3,520 3,520 3,520
GANN Limit Agreed-upon Procedures 7 700 750 750 750 665 Total 37,945 410 $ 39,100 $ 40,315 $ 40,315 $ 40,315 $
Hours Rates Hours Rates Hours Rates Hours Rates Hours Rates Partner 150 42 $ 41 155 $ 39 160 $ 39 $160 39 $160
Audit Manager 120 71 69 125 67 130 67 130 67 130
Audit Senior 115 85 112 90 109 95 109 95 109 95
Professional Audit Staff 162 75 158 80 152 90 152 90 152 90 Administrative Assistant 20 60 20 70 19 70 19 70 19 70
Total Hours 410 400 386 386 386
Total Cost $ 40,315
2026
2022 2023 2024 Optional Year
2025
Optional Year
Position
$ 37,945 $ 39,100 $ 40,315 $ 40,315
Comprehensive
Cost Bid

EXHIBIT B
Agenda Item No. 6G

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of June 28, 2022
_______________________________ ______________________________ Prepare by: Approved by:

Philip F. Sinco, City Attorney Todd Bodem, City Administrator SUBJECT: Second Reading of Ordinance no. 2022-502 of the City of Guadalupe, California, amending portions of chapter 3.20 of title 3 of the Guadalupe Municipal Code related to Transient Occupancy Tax to increase the tax rate from 6% to 10% as well as increase the types of occupancy categories subject to the tax RECOMMENDATION:

That the City Council adopt, on the second reading, Ordinance 2022-502, to increase the transient occupancy tax rate from 6% to 10% as well as increase the types of occupancy categories subject to the tax to specifically include short-term rentals, RV parks, and campgrounds.

BACKGROUND:

The City Council introduced Ordinance No. 2022-502 at its meeting on June 14, 2022. This constitutes the second reading of the ordinance.

ATTACHMENTS

1. Ordinance No. 2022-502 entitled “An Ordinance of the City of Guadalupe, California, Amending Portions of Chapter 3.20 to Title 3 of the Guadalupe Municipal Code Relating to Transient Occupancy Tax to Increase the Tax Rate from 6% to 10% as well as Increase the Types of Occupancy Categories Subject to the Tax.”
Philip F. Sinco

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ORDINANCE NO. 2022-502

AN ORDINANCE OF THE CITY OF GUADALUPE, CALIFORNIA, AMENDING PORTIONS OF CHAPTER 3.20 OF TITLE 3 OF THE GUADALUPE MUNICIPAL CODE RELATED TO TRANSIENT OCCUPANCY TAX TO INCREASE THE TAX RATE FROM 6% TO 10% AS WELL AS INCREASE THE

TYPES OF OCCUPANCY CATEGORIES SUBJECT TO THE TAX
WHEREAS, under the provisions of the laws in the State of California, a general municipal election shall be held on November 8, 2022, for the election of municipal officers; and WHEREAS, the City Council also desires to allow the voters of the City of Guadalupe the opportunity to increase the rate of the City’s Transient Occupancy Tax (TOT) from 6% to 10% to remain in effect until ended by voters; and
WHEREAS, the City Council also wishes to change the definition of “hotel” (which is not limited to hotels only, but includes other types of transient occupancies) to a definition of “lodging” which will include the same transient occupancies listed under the current definition of “hotel” to also include additional occupancies such as short-term rentals, campsites, and recreational vehicle parks.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GUADALUPE DOES ORDAIN AS FOLLOWS:

SECTION 1. Section 3.20.010 of Chapter 3.20 of Title 3 of the Guadalupe Municipal Code is hereby amended as follows:

3.20.010 Definitions.

For purposes of this chapter, the following words and phrases are defined as follows:

A. “Lodging” means any structure, or any portion of any structure, reserved outdoor space, or other premises or area, which is occupied or intended or designated for occupancy by transients for dwelling, lodging, or sleeping purposes, and includes any hotel, motel, inn, short-term rental (as defined in Section 18.55.02.D), bed and breakfast, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location or other similar structure or portion thereof, recreational vehicle park, campground, or parking area, or any other property rented to a “transient” as defined below.

B. “Occupancy” means the use or possession, or the right to the use or possession, of any room or rooms, or portions thereof, in any lodging for dwelling, lodging, or sleeping purposes.

ATTACHMENT 1

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C. “Operator” means the person who is proprietor of any lodging, whether in the capacity owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his or her functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his or her principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

D. “Person” means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

E. “Rent” means the consideration charged, whether or not received, for the occupancy of space in a hotel, valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever.

F. “Tax Administrator” means the Director of Finance.

G. “Transient” means any person having occupancy of a lodging for a period of 30 consecutive calendar days or less regardless of the form of agreement, license, permit or entitlement. Any person occupying a lodging shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing, between the operator and the occupant, providing for a longer period of occupancy.

SECTION 2. Section 3.20.020 of Chapter 3.20 of Title 3 of the Guadalupe Municipal Code is hereby amended as follows:

3.20.020 Tax imposed—Amount—Payment.

For the privilege of occupancy in any lodging, each transient is subject to and shall pay a tax in the amount of 10% of the rent charged by the operator. Such tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator or the City. The transient shall pay the tax to the operator of the lodging at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the lodging, the Tax Administrator may require that such tax shall be paid directly to the Tax Administrator.

SECTION 3. Section 3.20.030 of Chapter 3.20 of Title 3 of the Guadalupe Municipal Code is hereby amended as follows:

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3.20.030 Exemptions.

A. No tax shall be imposed upon:

1. Any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the tax herein provided;

2. Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

3. An “organized camp” as defined in California Health & Safety Code section 18897.

4. Housing operated by or used exclusively for religious, charitable, or educational purposes by any organization which has obtained exemption from property taxes under the laws of California for the period the tax would otherwise be imposed.

5. Any campsite in a unit of the state park system.

B. No exemption shall be granted except upon a claim therefor made under penalty of perjury at the time rent is collected, upon a form prescribed by the Tax Administrator.

SECTION 4. Section 3.20.040 of Chapter 3.20 of Title 3 of the Guadalupe Municipal Code is hereby amended as follows:

3.20.040 Registration of lodgings.

Within 30 days after the effective date of the ordinance codified in this chapter, or within 30 days after commencing business, whichever is later, each operator of any lodging renting occupancy to transients shall register such lodging with the Tax Administrator and obtain from him or her a “Transient Occupancy Registration Certificate,” to be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, state the following:

A. The name of the operator;
B. The address of the lodging;
C. The date upon which the certificate was issued;
D. “This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax ordinance by registering with the Tax Administrator for the purpose of collecting from transients the Transient Occupancy tax and remitting said tax to the Tax Administrator. This certificate does not authorize any person to conduct any unlawful

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business or to conduct any lawful business in an unlawful manner, nor to operate a lodging without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department, or office of this City. This certificate does not constitute a permit.”
SECTION 5. Section 3.20.050 of Chapter 3.20 of Title 3 of the Guadalupe Municipal Code is hereby amended as follows:

3.20.050 Operator’s collection duties.

Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a lodging shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added any part will be refunded except in the manner hereinafter provided.

SECTION 6. USE OF TAX PROCEEDS. The proceeds of the tax approved by this Ordinance may be used for unrestricted general revenue purposes.

SECTION 7. SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or circumstances is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

SECTION 8. ELECTION REQUIRED. This Ordinance shall not become operative unless and until a majority of the electors voting on this measure vote to approve the imposition of the tax at the General Election to be held on November 8, 2022.

SECTION 9. EFFECTIVE DATE. This Ordinance relates to the levying and collecting of the City’s transient occupancy tax and shall take effect immediately.

SECTION 10. COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), and the CEQA guidelines, and the City’s environmental procedures, and has been found to be exempt pursuant to § 15601(b)(3) (general rule) and § 15378(b)(4) of the CEQA Guidelines.

The transient occupancy tax imposed by the adoption of this Ordinance is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action.

The City Council hereby finds with certainty that there is no possibility the passage of this Ordinance will have a significant effect on the environment. Additionally, it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the City would undertake the required CEQA review for that particular project at the earliest feasible date.

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SECTION 11. CLERICAL CORRECTION. The City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the City Clerk shall consult with the City Administrator and City Attorney concerning any changes deemed necessary.

INTRODUCED at a regular meeting of the City Council held this 14th day of June 2022, by the following roll call vote, subject to voter approval at the November 8, 2022, General Municipal Election.

MOTION: TONY RAMIREZ / LILIANA CARDENAS
AYES: 5 Councilmembers: Ramirez, Cardenas, Julian, Robles, Costa Jr.

NOES: 0
ABSENT: 0
ABSTAINED: 0
PASSED AND ADOPTED at a regular meeting of the City Council held this 28th day of June 2022, by the following roll call vote, subject to voter approval at the November 8, 2022, General Municipal Election.

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

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Agenda Item No. 6H

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of June 28, 2022

_______________________________ _________________________________ Prepared by: Approved by:

Shannon Sweeney Todd Bodem, City Administrator
Public Works Director/City Engineer
SUBJECT: Transit Update
RECOMMENDATION:

For Information Only
DISCUSSION:

On January 12, 2020, Council adopted the Short-Range Transit Plan. This document was the culmination of public outreach and evaluation of existing transit services and can be found on the City’s website at www.ci.guadalupe.ca.us under Miscellaneous Documents.

Council was provided several alternatives for structuring City of Guadalupe transit services for efficiency, cost effectiveness, and service to the community. Council selected the option that eliminates the existing on-demand shuttle service and creates two fixed routes. The first route is a local route that runs every half hour through the City Guadalupe. The second route is an express route that runs hourly between the City of Guadalupe Amtrak station and the City of Santa Maria transit station.

The two routes meet up at the City of Guadalupe Amtrak station at the bottom of the hour. Free transfers will be made available between two routes. More information can be found at www.smoothinc.org.

Since then, City staff has been working diligently towards implementing Council’s recommendation.

The new service is scheduled to begin on July 1, 2022. Please note that the last day of shuttle service is to 30th, 2022.

Steps the City staff have taken to prepare for this transition include the following:
• Print new bus schedules. The schedules are available online and at the City Hall Finance counter.
• Update the online mapping information to reflect the new routes. • Advertise the new routes on local radio and television. Summary of advertisement is attached.

Shannon Sweeney

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• Regularly coordinate with the City’s contract transit service, SMOOTH, to verify that all logistics have been addressed, including topics such as staffing and restroom breaks. • Post information on Facebook and track demographics of interested parties. • Post information on all transit buses regarding new service. • Issue press release on June 27, 2022.
• Improve bus stops, including new shelters, lighting, trash receptacles, and signage. This work is ongoing and will be continued until all the stops have the necessary amenities.

City staff will work in concert with SMOOTH to gather data for the first few months of operation of the new schedule and will make adjustments as necessary to ensure success of the new operation.

ATTACHMENTS:

1. Advertisement Summary.
805-895-1060 • [email protected] • keys2thecoast.com Keys2thecoast.com is an Online Resource
Featuring the Best Places to Wine, Dine, Explore & More June Marketing Campaign Report 6/17/22
Media Buys for English and Spanish
Digital OTT placements- English 31,000 commercials
Digital OTT placements- Spanish 31,000 commercials
Radio placement in English and SpanishLa Buena - 2160 commercials Ranchito -108 Commercials
FUEGO- 1256 Commercials
Sunny Country- 1584 Commercials
Marketing Campaign Core messaging
New hourly express, and half hour local. One time transfer between.

New route stops (Pasadera Homes, Montez Ct./Main St.)
New brochure, info available using Google Maps and other internet trip planning programs.

New bus shelters in Guadalupe being added in at this time, lighting to come soon! “Clean, safe, affordable – Try Transit!”
ATTACHMENT 1
Placement sample

Campaign Commercials

2 English :15 & :30 TV
2 Spanish :15 & :30 TV
1 English Radio :60
1 Spanish Radio :60
6 commercials were produced

Social Media campaign
Placement on local Keys 2 the Coast:

Additional placement in Facebook Groups to expand our reach:

Orcutt, California
Community Bulletin Boards (Orcutt, Santa Maria and Surrounding) Events at and near Guadalupe
Valle de Guadalupe Community
Guadalupe Neighbors

Sample Post and reach demographics:

This information is screenshots of one example of a SMOOTH Facebook post on June 1, 2022
Notice the ad gender reach percentages: 47.2% women | 52.8% men.

Upcoming Press Release Target Release 6/27/2022

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Guadalupe City CouncilJune 28, 2022

Guadalupe City Council
June 28, 2022