Agenda packet — Guadalupe City Council, August 9, 2022

August 9, 2022 City of Guadalupe Council Meeting Agenda Page 1 of 5 City of Guadalupe
AGENDA
Regular Meeting of the Guadalupe City Council
Tuesday, August 9, 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 2:00 pm on Tuesday, August 9, 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
August 9, 2022 City of Guadalupe Council Meeting Agenda Page 2 of 5

2. PLEDGE OF ALLEGIANCE

3. 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.

4. PRESENTATION
• Santa Barbara County Public Health Department – Animal Shelter and Field Services Presentation.

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 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 August 1, 2022 C. Approve the Minutes of the City Council Regular Meeting of July 26, 2022, to be ordered filed.

D. Adopt Second Reading of Ordinance No. 2022-503 amending the Official Zoning Map to Rezone a 1.08-Acre Area located in the Gularte Tract from Single-Family Residential (R-1) to Multiple-Dwelling High Density (R-3) located at 4241 La Guardia Lane between Eleventh Street and La Guardia Lane, APNs 115-230-013, and 015.

E. Adopt Resolution No. 2022-72 approving the Cost Allocation Plan for Fiscal Year 2022-23.

F. Adopt Resolution No. 2022-73 approving revisions to the City of Guadalupe Microenterprise Financial Assistance Guidelines to add in the newly developed components.

August 9, 2022 City of Guadalupe Council Meeting Agenda Page 3 of 5 G. MONTHLY REPORTS FROM DEPARTMENT HEADS

1. Planning Department report for July 2022

2. Building Department report for July 2022

3. Public Works Department / City Engineer’s report for July 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 2021-047-PA a Use Determination for Wine Tasting and Event Center Facilities within the General Commercial (G-C) Zone District.

Written report: Larry Appel, Planning Director
Recommendation: That the City Council:
a. Receive a presentation from staff; and
b. Conduct a public hearing, including: 1) an opportunity for the applicant to speak, 2) receive any comments from the public.
c. Adopt Resolution No. 2022-74 and find that Wine Tasting and Event Center facilities in the General Commercial (G-C) district are similar in use and consistent with the purpose of the zoning district, provided that any event center facility with outdoor events is approved with a conditional use permit (CUP).

REGULAR BUSINESS

11. Housing Element Update (6th Cycle) Options.

Written report: Larry Appel, Planning Director
Recommendation: That the City Council:
a) Identify $248,000 in the General Fund to cover the cost of preparing a 6th Cycle Housing Element and direct staff to prepare a contract utilizing EMC Planning Group to accept their proposal and sign a contract for services; or
b) Continue this item to a date certain for further discussions regarding the funding of the Housing Element update; or
c) Continue this item to a future date in order to allow staff time to obtain a proposal from Cal Poly; or
d) Drop the item and don’t update the Housing Element until funding is available.

August 9, 2022 City of Guadalupe Council Meeting Agenda Page 4 of 5

12. Establishment of fees for Short-Term Rentals.

Written report: Philip F. Sinco, City Attorney
Recommendation: That the City Council adopt Resolution No. 2022-75 establishing fees for the initial registration and annual renewals for all short-term rentals and for an administrative use permit application imposed for unhosted short-term rentals.

13. FUTURE AGENDA ITEMS

14. ANNOUNCEMENTS – COUNCIL ACTIVITY/COMMITTEE REPORTS

15. ADJOURNMENT TO CLOSED SESSION MEETING

CLOSED SESSION

16. Public Employee Performance Evaluation
(Subdivision (b) of Government Code section 54957)
Title: City Administrator

17. ADJOURNMENT TO OPEN SESSION MEETING

18. CLOSED SESSION ANNOUNCEMENTS

19. 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 4th day of August 2022.
____________________________________
Todd Bodem, City Administrator
Todd Bodem
August 9, 2022 City of Guadalupe Council Meeting Agenda Page 5 of 5

PROPOSED FUTURE CITY COUNCIL AGENDA ITEMS
Council Meeting: Date and Subject Department Agenda Category Tuesday, August 16, 2022, at 6:00 pm / Special Meeting
Reconsideration of Second Commercial Cannabis
Business (CCB) Permit Applicant - Retail
Tuesday, August 23, 2022, at 6:00 pm / Regular Meeting
County Fire Dispatch Police Department Presentation
Pasquini Lease Agreement – WWTP Effluent spray field Public Works Department Consent Calendar July 2022 Financial Report Finance Department Consent Calendar Pasadera Public Infrastructure Dedication Public Works Department Consent Calendar Master Fee Schedule CPI Finance Department Consent Calendar FPPC Conflict of Interest Code Update – City Council &
Successor Agency
City Attorney Regular Business
Tuesday, September 13, 2022, at 6:00 pm / Regular Meeting Central Coast Processing – 151 Obispo CUP Planning Department Public Hearing Le Roy Park Phase II Public Works Department Regular Business Tuesday, September 27, 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 Food Truck and Special Event Ordinance Planning Dept New Business Gift Policy City Attorney New Business
Master Fee Schedule Update Finance Department Workshop
Recognizing Food Distribution Volunteers Ceremonial Calendar Facility & Parks Use Fee Schedule Changes Recreation & Parks Benefit for Unrepresented Employees Human Resources New Business Al’s Union Property New Business
Boys and Girls Club Memorandum of
Understanding
Recreation & Parks
Department
Pre�-
Agenda Item No. 6B

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of August 09, 2022
Approved by:

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

RECOMMENDATION:

Payment of warrants for the period ending August 01, 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 August 10, 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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July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 1 of 15

MINUTES
City of Guadalupe
Regular Meeting of the Guadalupe City Council
Tuesday, July 26, 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. (Note: The abbreviation, “CM”, will be used for “Council Member” in the minutes.)

2. MOMENT OF SILENCE
Mayor Julian mentioned the passing of Armando (“Abe”) Garcia, a Marine veteran and long-time resident of Guadalupe and offered condolences to his family. He also asked that we continue to remember those suffering the effects of the war in Ukraine.

3. PLEDGE OF ALLEGIANCE

4. AGENDA REVIEW
There were no changes to the agenda.

5. COMMUNITY PARTICIPATION FORUM
Julianne Hill, from Taylor Farms, formerly Apio and Curation Foods, said that she had been with Taylor Farms for 19 years. With Taylor’s acquisition, they are looking to be more involved in Guadalupe and the community. Taylor Farms has already helped with the Le Roy Park re-opening, Cinco de Mayo celebration, and supported local kids at the auction at the recent County fair.

Ms. Hill said that she was at the meeting tonight to remind everyone about the upcoming blood drive. It will be held at the Taylor Farms facility on Wednesday, July 27th, from 2:00 p.m. to 5:30 p.m. She said, “Look for the Vitalant blood mobile. We will be giving out grocery bags of veggies Agenda Item No. 6C
July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 2 of 15 there, too.” She thanked all the sponsors and organizations for spreading the word. Mayor Julian also commented, “Taylor Farms did some landscape cleaning here in Guadalupe. So, thank you.” Inger Hudson mentioned that she is a fairly new resident of Guadalupe. She had taken her grandson to the rehabilitated Le Roy Park who was very happy with all that he saw. Then she said, “I’d like to help…maybe with the Performing Arts Center and childcare. I’m not sure what I could do but I just wanted to offer my help. Also, there was a special meeting last week about two (2) cannabis companies. But I don’t know the outcome. What happened and when will the minutes come out?” She said, “I received a notice in the mail about fining people for smoking in wrong places. Seems to be cross purposes here. Second hand-smoke and cannabis. Again, I just want to say that I would like to be involved in my community. Thank you.”
Mayor Julian advised Ms. Hudson to speak with Chief Cash and Todd Bodem regarding her offer to help wherever she could. He also told her that the special meeting, which had been scheduled for July 19th, was canceled but will be rescheduled for Tuesday, August 16th. City Attorney offered his business card and added that he would be happy to bring her up to date on the cannabis issue.

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 July 18, 2022 and ratify payment of warrants for the period ending June 30, 2022 and July 7, 2022.

C. Approve the Minutes of the City Council Regular Meeting of July 12, 2022, to be ordered filed.

D. Approve a Professional Services Agreement for City Attorney services with The Law Office of Philip F. Sinco, LLC and authorize the Mayor to sign the agreement on behalf of the City.

E. Receive the June 2022 Financial Report.

F. Adopt Resolution No. 2022-64 acknowledging the receipt of and filing of the Annual Statement of Investment Policy for Fiscal Year 2022-2023.

G. Adopt Resolution No. 2022-65 establishing the appropriations limit from tax proceeds for Fiscal Year 2022-2023.

July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 3 of 15 H. Adopt Resolution No. 2022-66 approving a contract with Pacific Coast Land Design, Inc. (PCLD) in the amount of $611,687.00 for preparation of plans and specifications and engineer’s estimate for Central Park renovation.

I. Adopt Resolution No. 2022-67 approving the procurement of an electric bus through the state purchasing program.

J. Approve Memorandum of Understanding with Santa Barbara County Association of Governments to define the roles and responsibilities associated with transit planning and programming for the term of August 18, 2022, to August 31, 2027.

K. Adopt Resolution No. 2022-68 approving an agreement with the Guadalupe Union School District for funding of a School Resource Officer.

L. MONTHLY REPORTS FROM DEPARTMENT HEADS

1. Public Safety Department:
a. Fire Department report for June 2022
b. Code Compliance report for June 2022

2. City Treasurer’s report for June 2022

3. Human Resources Report for June 2022

4. Recreation & Parks report for June 2022
Todd Bodem pulled Item #7.J. Motion was made by Council Member Costa, Jr. and seconded by Council Member Ramirez to approve the balance of the Consent Calendar. 5-0 Motion passed.

Item #7.J. – Ms. Shannon Sweeney, Public Works Director, mentioned that on page 6 of 9 of the MOU, it states that the term of the MOU “shall begin on July 21, 2022 and end on July 31, 2027”.

She said that those dates are incorrect. The correct dates are as stated in the staff report, “August 18, 2022 to August 31, 2027”. Ms. Sweeney said that the term dates were the only corrections to the MOU.

Motion was made by Council Member Ramirez and seconded by Council Member Costa, Jr. to approve the City of Guadalupe Transit and Santa Barbara County Association of Governments (SBCAG) transit operator agreement with the amended dates. 5-0 Motion passed.

7. CITY ADMINISTRATOR REPORT: (Information Only)
Mr. Bodem reiterated that there would be a special meeting on Tuesday, August 16th which is the rescheduled meeting of July 19th.

8. DIRECTOR OF PUBLIC SAFETY REPORT: (Information Only) July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 4 of 15 Chief reported on two (2) items: 1) the final number of citations for illegal fireworks is nine (9).

They’re going through processing with the help of the City Attorney, and 2) a year ago, the Santa Barbara County Public Health came and spoke to us about tobacco prevention group. Every city in the County got a grade and Guadalupe got an “F”. Through the City Council’s actions, within 1.5 years, we now are at a grade “A”. Guadalupe is in a case study with the American Lung Association and their Public Law Health Center. We’re the only city in Santa Barbara County with a grade “A” and we’re among the top scores across California. We’re very proud of that and that we’re making sure that minors aren’t smoking tobacco.

9. MAYOR’S REPORT- UPDATES
The mayor mentioned the report is on the website and in tonight’s agenda packet. He encouraged people to read it to found out about all the activities and projects occurring throughout the City.

PUBLIC HEARING

10. Public Hearing to consider La Guardia Townhomes, 2022-001-GPZ and 2022-002-DR amending the General Plan Land Use Element from Low Density Residential to High Density Residential, rezoning from R-1 (Residential Single Family) to R-3 (Multiple Dwelling High-Density), and a Design Review to relocate a single-family home and replacing it with 20 one and 2-story apartment building (total 20 units).

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. 2022-69 approving 2022-001-GPZ for the Land Use Designation amendment and 2022-002-DR for the townhomes, including DR Findings, CEQA Class 32 Exemption and Conditions of Approval; and
d) Introduce Ordinance No. 2022-503 for the first reading to rezone the property from R-1, Single-Family Residential to R-3, Multiple Dwelling (high density); and e) Continue the Ordinance to August 9, 2022, for second reading and adoption.

Mr. Bill Scott gave the presentation in Mr. Larry Appel’s absence.

The property in question covers 1.08 acres and is located at 4241 La Guardia Lane between La Guardia Lane and Eleventh Street. There are two (2) parcels for 20 multi-family units. There will be 18 two-bedroom and two 3-bedroom apartment units to be built. Mr. Lupe Alvarez is the property owner. The request is the rezoning from R-1, single-Family residential, to R-3, Multiple Dwelling (high density). This would also be part of the General Plan update. It is exempt from CEQA with a Class 32 exemption. This was the first reading of the ordinance.

July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 5 of 15 The property owners had waited for the update to the General Plan which would up zone the property to R-2 with its new density which would be the same as the current R-3 zone. That specific change in General Plan has not yet occurred. Due to the need to reinvest funds from other property sales, the property owners have gone forward with a private GPZ application. This project will be consistent with the new designations once the City completes the General Plan update.

There’s a driveway that connects Eleventh Street and La Guardia with the multi-family development on either side of the driveway. Landscaping will cover about 11.2% of the site. Each unit will have a minimum of 200 square feet of private open space. The buildings in this zone district are allowed to be up to 35 feet but this development will limit the height to 23 feet. There will be a need for a lot line adjustment that will combine the two lots which will come later prior to the issuance of a building permit.

The applicant has submitted a project that will ultimately provide 20 new apartment units where a vacant lot and dilapidated residence were present. The applicant is following the goals of the General Plan update to revitalize this area by allowing new development at a higher density that previously developed. The project will be consistent with the General Plan Land Use designation and the Zoning designation if the GPZ is approved by Council. Mr. Scott then turned to the City Council for questions and/or further discussion.

CM Cardenas asked, “What is the status of the General Plan update?” Mr. Scott responded, “It’s in the consultant stage…environmental review so there are some steps away.” CM Ramirez added, “Housing is going to be huge for us and in California, in general. What Guadalupe is lacking is the buying power, like young professionals looking to buy a townhome, or a condo. We don’t have a lot of room to grow. We’re not expanding…not a lot of land to expand with farmland all around us.

This is what had me thinking about this development is what would this look like if these were condos or another opportunity?”
CM Costa, Jr. asked, “When are we looking at when they’re going to start the Escalante Meadows project?” Mr. Bodem said, “In October…in two phases. They’ll start one phase, finish that and then start the second phase. There will be people living there part of the time.” CM Costa, Jr. further said, “On Eleventh Street, it’s narrow…with two constructions happening…traffic is tight with potential for accidents. I know with other cities when new development come in, the developer is asked what they’re going to do to help with the traffic. Something to look at for the future. More cars…egress…in and out for both Eleventh and La Guardia.” Mayor Julian commented, “To CM Ramirez’s point regarding home equity and ability to purchase, there aren’t a lot of single-family homes being built. This development, in terms of what it’s going to be…condos or apartments, it’s up to the developer what that’s going to be. I know that the money, perhaps the money, I don’t know the numbers, in terms of condos versus rentals. In the long term, how does that pencil out? Condos versus apartments? I’m assuming the apartment complex will generate more resources, but I don’t know…I’m not a realtor. In the past, there was discussion of how many people can be housed on one (1) acre – a little over 100 people based on apartment sizes.

July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 6 of 15 My concern then with that amount of people was the lack of open space. A couple hundred square feet of yard or of open space. Then there’s area for two (2) ADUs. To me it may be more appropriate rather than the ADUs, to use space for pocket parks like the ones at Pasadera. I’d like to hear from the developer whether condo conversion, townhouse conversion as opposed to apartment rentals.” Public hearing opened at 6:26 p.m.

Mr. Lupe Alvarez had previously passed out a picture of an old building (house) that’s sitting on the property in question. He said, “In 1957, my dad came and lived in Gularte tract, the official name but was then called ‘Little TJ’. The People’s Self-Help Project helped to improve this area. I also believe that the Housing Authority project will also improve that area. To set up a condo association is cost prohibitive and would force the costs to go up. The apartments behind the Veterans Building…those aren’t condos…they’ve never been converted to condos. They’re still apartments.

For us, the whole area is currently R-3 but will be R-2 and will have the same density with the General Plan update. I’ve heard from Larry (Appel) that sometime in November/December that the General Plan will be ready.

To address the mayor and comments about ADUs, etc. Larry preferred having 200 feet of open space.

ADUs are state law so we’re just following the law that allows them. I really want to change that name from ‘Little TJ’ to just Gularte tract or the entrance to Guadalupe on the northside. ‘Little TJ’ is a derogatory name. We hope our project encourages other property owners to sell or develop their property. The condos…I agree with you, mayor, is a personal choice. There could be incentives from the City to help encourage that, but I don’t how you’d incentivize that when…Mr. Sinco probably knows more about that how costly it is to turn something into condos. And then there are always lawsuits. It's a hard thing, too. I agree with you to offer a family to buy but what happens to people already living there? As of today, the Housing Authority might be starting at the beginning of the year but, there are eight (8) people being pushed to find housing now…tight market to find available housing. That’s our project and I hope you can support it. We’re just following what’s available as far as the rules and the laws.”
Mayor Julian asked about size of La Guardia and the actual size of the street, is that going to be expanded or is that the street as it exists now? Mr. Alvarez said that there’s no room to expand with property owners on both sides. The mayor added, “Is the exit from Eleventh Street through La Guardia or…” Mr. Alvarez said, “Both, so there’s no tight traffic. It’s also a truck route so you won’t be able to…if you don’t want to go through Guadalupe Street, the only option is through there.” The mayor said, “Eleventh Street is the highway to strawberry fields in San Luis Obispo County. I don’t know if there’s going to be any street calming going west but that’s going to be a busy intersection.” Ms. Sweeney said, “Funds are available through the Escalante Meadows project in order to create a multi-mobile path on the southside of Eleventh Street. A barrier will be provided between pedestrians and traffic on that southside of the street. I would like to form an advisory group to help with design plans to provide an opportunity so kids can walk safely there while still providing parking opportunities.”
July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 7 of 15 Mr. Peter Lopez - I’m in favor of the La Guardia townhomes. As a resident of the community and property manager, I fully support this knowing that housing is high. It’s not just here in Guadalupe… it’s in Santa Maria, Nipomo…it’s everywhere. We definitely need housing. Lupe Alvarez has built some excellent projects here in our community and will continue on that track record. He’s also very active in the community so he’s going to see to it that it does become a nice project and stays that way. I helped Cabrillo Development with a project just adjacent to the east of this property before it was sold to People’s Self-Help Housing. I think that was a good catalyst to bring in other future development projects. I’m in favor of this project and ask that you support it. Thank you.” Mayor Julian asked Mr. Lopez what the going rate was for a two-bedroom in Guadalupe. Mr. Lopez said, “They range from $1,300 upwards to $2,700. There’s a certain amount that rent can be raised per year, anywhere between 8% to 10%. If I use a standard of 10%, someone with $1,300 rent, the most the rent could be raised is $130. There are certain built-in factors that limit the affordability of the rentals and why there’s such a variance in the numbers.” The mayor also said that the group, Community Changers, would like to prepare information on what’s affordable housing. What’s the vacancy right now? Mr. Alvarez said, “Zero. Eleventh Street by Le Roy Park…brand new for $1,800 rent. We hope to be in the same range at La Guardia.” Public hearing closed at 6:39 p.m.

CM Cardenas asked, “Will there be bus service for this project? I know we mentioned Escalante Meadows. Will that be accessible for this project? In terms of connectivity, will this project be able to be connected to the rest of our community? Walking to schools and our downtown?” Mr. Scott said, “I believe so. From a general planning standpoint, this is an infield project. It’s a good location.

In general, this is a good project regarding the General Plan. I don’t know about the part of Eleventh Street to get to schools.” Ms. Sweeney added, “This project requires continuous sidewalk from the project from the end of La Guardia all the way to Gularte with connection to the continuous sidewalk to Escalante Meadows. There are plans for a bus stop right there in front of Escalante Meadows. So, there will be safe and continuous walking path to a bus stop within one-half a mile of this project.” The mayor questioned one-half a mile being a long way. Ms. Sweeney then said, “I don’t know the exact distance and it could be short of that. But we use ‘within one-half mile’ being the industry standard of within access to a bus stop. It’s well within walking distance.” Motion was made by Council Member Costa, Jr. and seconded by Council Member Ramirez to approve Resolution No. 2022-69 approving 2022-001-GPZ for the Land Use Designation amendment and 2022-002-DR for the townhomes, including DR Findings, CEQA Class 32 Exemption and Conditions of Approval. Roll Call: Ayes: 5 Nos: 0 5-0 Motion passed.

Motion was made by Council Member Costa, Jr. and seconded by Council Member Robles to approve introduction of Ordinance No. 2022-503 for first reading to rezone the property from R-1, Single-Family Residential to R-3, Multiple Dwelling (high density) and continue the Ordinance to August 9, 2022, for second reading and adoption. Roll Call: Ayes: 5 Nos: 0 5-0 Motion passed.

July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 8 of 15 After the motions were made, Mayor Julian asked if there was anyone on zoom who wished to speak.

City Attorney Sinco said that this was a regular meeting without the ability for those viewing it to “chat”.

REGULAR BUSINESS

11. Classification and Job Description for the Facilities/Parks Maintenance Lead Position within the Recreation & Parks Department.

Written report: Hannah Fuentes, Recreation Services Manager Recommendation: That the City Council adopt Resolution No. 2022-70 approving the classification and job description for the Facilities/Parks Maintenance Lead Position within the Recreation and Parks Department.

Ms. Fuentes gave a brief background on how and why this new position was created. The Recreation Services Manager was recently hired, and a reorganization occurred in the Public Works Department, with maintenance responsibilities for City facilities and parks splitting off from the other functions of Public Works, such as streets, sewers, storm drains, public works construction and installation. There was a need for a “lead” maintenance position to oversee the general maintenance, repair, upkeep and janitorial services for facilities and parks. In addition, the City moved the majority of landscaping and janitorial needs in-house and hired a Maintenance Worker I to focus on parks and facilities.

With the renovation of Le Roy Park, the Royal Theatre, Central Park, O’Connell Park baseball field, etc., a focused attention is needed to ensure the upkeep of not only these current projects, but all City facilities and parks. Focused attention on our facilities and parks requires a “lead” position to provide planning and scheduling of major maintenance and daily oversight in the City’s parks and facilities. This “lead” position will report to the Recreation Services Manager and oversee the Maintenance Worker I. City Council had approved ARPA monies to fund this position.

CM Ramirez suggested that the grant funding for this job be put on the job description, so it was clear. Mr. Bodem stated that it was his understanding that the position will eventually be funded through the General Fund, but CM Cardenas said that it’s currently being funded through ARPA. Mr.

Bodem said, “Yes, through ARPA now through 2023.” Amelia Villegas, Interim Human Resources Manager said, “It will be noted on the job posting that the job is grant-funded, as well as on any other advertising used. When we interview candidates, we will be transparent in terms of the sourcing of funds for this position. However, the funding source for a position is typically not a part of a job description. Hannah and I already spoke about this. This will be covered with all candidates.” Motion was made by Council Member Ramirez and seconded by Council Member Robles to approve Resolution No. 2022-70 approving the classification and job description for Facilities/Parks Maintenance Lead and authorizing staff to initiate recruitment for this position.

Roll Call: Ayes: 5 Nos: 0 5-0 Motion passed.

July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 9 of 15

12. Budget Amendment for Fiscal Year 2022-23.

Written report: Lorena Zarate, Finance Director
Recommendation: That the City Council adopt Resolution No. 2022-71 accepting the proposed budget amendment for the fiscal year 2022-2023, along with the amended Capital Improvement Projects Budget, amended Capital Facilities Program of Projects, and amended American Rescue Plan Act (ARPA) allocation of funds.

Ms. Zarate gave the background as to why there was a proposed budget amendment for FY 2022- 2023 as the budget had previously been approved by the City Council as a balanced budget at the June 28, 2022 meeting. One of the cost-cutting measures in that budget was freezing step increases for employees. The City Attorney subsequently advised that the City Council could not unilaterally freeze step increases for employees as this would require agreement from the employee unions.

With that advice, the City Attorney recommended amending the budget for FY 2022-2023 to fund the employee step increases.

There were several other changes included in this proposed budget amendment showing: 1) creation of Public Safety Intern Program using PCF funds; 2) Finance intern position using ARPA funds; 3) Safe Routes to School for La Guardia as a capital project; 4) repurpose remaining ARPA funds from vegetation maintenance, and 5) renegotiation for the Police Lieutenant position promotion.

The total amount of increase for the reinstated step increases is $57,900 to various General Fund departments. The renegotiation of the Police Lieutenant position promotion amounted to an increase of $28,300. These two combined increases totaled $86,200, which unbalanced the budget by about $16,700. The budgeted overtime for public safety was decreased by this amount to balance the budget. The Police Lieutenant position received additional incentive pay that would directly decrease the overtime cost.

To summarize, the amended budget includes revenues of $6,931,513 and expenditures of $6,931,096 whereas the approved budget had revenues of $6,923,013 and expenditures of $6,855,700. There is an increase of $8,500 in revenues and an increase to expenditures of $75,400 in the amended budget versus the approved budget. The proposed amended budget is at a breakeven state, with $400 as the difference between the budgeted revenue and budgeted expenditures. The Council will have an opportunity to review revenue and costs to date as well as projections of both at the mid-year budget review which would be approximately January 2023. The Council will be able to assess the budget for the remainder of the fiscal year in order to fund expenditures that were cut or deferred.

There were changes to the various Enterprise Funds, as well, in the amended budget. Also, a recap of ARPA funds was given. Total award to the City was $1,860,000 of which half or $930,930, was received in June 2021. City Council approved and allocated a total amount of $1,716,934. The proposed budget for FY 2022-2023 includes the use of ARPA funds in the amount of $1,396,918 to fund the following: 1) $659,113 for General Fund expenditures; 2) $30,806 for Los Amigos de Guadalupe, and 3) $707,000 for capital projects. These figures include the funding of the finance July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 10 of 15 intern, $6,500, and reinstated step increase, $2,000, for the Recreation Services Manager. The repurposing of the excess funds from the vegetation maintenance project was detailed.

Ms. Zarate concluded saying, “This is a balanced budget. There’s no wiggle room with revenues versus expenditures.” She then turned back to the City Council for any further discussion or clarification.

Mayor Julian commented on an item of “repurposing the remainder of ARPA funds from vegetation maintenance” which amounts of $14,000. Is that for one or two parks? There was discussion about use of those remaining funds for gates at parks.” Ms. Fuentes responded, “That was the first estimate we got for installation of swinging gates for two (2) entrances at Le Roy Park…the first entrance when you first come in and can drive up into the driveway and the second entrance that goes into the decomposed granite. There was another quote for $12,000 to repair the softball field fence and another installation of a gate there at that parking lot. We had someone else come out to give us an estimate which hasn’t been received yet.” The mayor clarified, “So, the $14,000 is basically for Le Roy Park. You can drive into the parking lot on the east side of the building because there’s no gate there. We’ve already had problems with people going down to the back because there’s no gate back there.” Chief Cash added, “The issue we had because of the gravel in the back of the park…during late night hours, we had several vehicles speed out in the gravel area of the parking lot, pushing the gravel up on the park area. We also had fears they’d drive on the grass area. Having a gate at that back end would keep vehicles out at night and enable us to view that location when we drove by.”
CM Cardenas asked how the $8,500 increase in revenues occurred. Mr. Zarate explained that was the $6,500 for Finance intern, using ARPA funds and had to be shown as a transfer from the revenue side. The expense side is where it “washes out”. Same for the reinstated step increase for the Recreation Services Manager for $2,000.

A lengthy discussion occurred regarding the renegotiation of the Police Lieutenant position promotion. CM Cardenas asked how the renegotiation of that position occurred as it was over budget from what was originally approved. Ms. Zarate deferred to Mr. Bodem, City Administrator, who said, “The negotiations started with the prior Human Resources Manager. The amount started at Step C of the range. That went back and forth through negotiations for a good year. The Interim Human Resources Manager and I were working on the negotiations and came to resolve where it is today.” The mayor added that the City was looking at reducing costs and questioned Chief Cash, who added, “There is cost reduction. That position is part of management. There’s no overtime being allocated. The lieutenant and I are on duty. There’s no overtime, so we’ll see a decrease in the long run.”
CM Ramirez made the following comments: “I feel there’s a conflict here now. We approve one thing, and it comes back ‘round robin’. I understand that changes have been made and we say that we’ll look at things mid-year to see where our revenues are. We have a budget with no wiggle July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 11 of 15 room…$400, that’s nothing. This looks like we need to work on transparency of what this all looks like. I don’t like doing ‘piece meal’ things. It’s not fair to people who’ve been attuned throughout the budget process and then have something come up later on. It’s just not transparent. When I saw the increase, I thought, ‘Has the ink dried on these agreements?’ We may be saving in one area, but later on, we’re paying in other areas like PERS, our unfunded liability, things like that. This leaves a little bit of a sour taste in my mouth looking at this budget right now.” CM Cardenas asked, “Have the negotiations for Police Lieutenant been approved. Mr. Bodem said, “Yes.” CM Ramirez said, “So, then this is a formality.” Mr. Bodem said, “This budgeting is to accommodate that position and the steps.” CM Cardenas further asked, “The steps, yes, I understand the steps. And the step we took was because we were trying to reduce costs? How did we come up with those negotiations for one person when we’re trying to cut costs across-the-board? We agreed on Step C and got that approved but now this is being thrown at us asking us to approve it because it's already been done.”
CM Ramirez added, “The equity in pay is not there…looking at overall compensation. That’s not right. Looking at pay for Director of Public Safety position…having a compensation package lower than someone reporting to them, that’s not acceptable. There’s nothing we can do now…it’s already been negotiated. Maybe this is a learning experience for us as a council. Whenever staff puts before the Council on management salary actions, there needs to be a certain threshold that requires further review. Council approves the recommended salary action and staff will go with what Council approved.” CM Cardenas firmly stated, “If we’re already concerned about our budget and we expressed that loud and clear that we want to cut and do different things, these types of negotiations…we can’t negotiate something that’s above our budget. We can’t have only $400 as our only ‘wiggle room’.”
Mayor Julian said, “Your points are well made, both of you. We agreed on moving this forward without the changes we’re looking at now.” CM Cardenas stated, “We agreed to something but not this. This being already done, and we can’t do anything about it, is a big issue.” Mayor Julian said, “There’s a resolution before us. What is the wish of the Council?” CM Ramirez said, “I don’t think we’re at a point yet to vote.” There were no comments from the public or any other discussion, so the mayor again asked what the wish of the Council was. Mayor Julian reiterated, “We need to make sure that something like this doesn’t happen in the future. What some of us are saying is that negotiations need to come before Council for approval before any action is taken by staff.” CM Ramirez added that a policy should be looked at on the matter of having Council approve management salary actions and that this item should be agendized.

Motion was made by Council Member Ramirez and seconded by Council Member Costa, Jr. to approve Resolution No. 2022-71 adopting budget amendments to the 2022-2023 budget and approve use of ARPA funds. Roll Call: Ayes: 4 Nos: 1 Cardenas 4-1 Motion passed.

13. City Council’s Arguments in Favor of Measure Z (Transient Occupancy Tax Increase).

July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 12 of 15 Written report: Philip F. Sinco, City Attorney
Recommendation: That the City Council:
a. Approve the argument, by motion; or
b. Revise the argument and approve the revised argument by motion; or c. Decline to submit any argument in favor of the proposed measure.

City Attorney Sinco stated that at the June 14, 2022 City Council meeting, the Council unanimously voted to place a measure on the November 8, 2022 ballot for voters to consider amending portions of the Guadalupe Municipal Code, related to the transient occupancy tax, specifically to increase the rate from 6% to 10%, and to increase the types of occupancy categories subject to the tax. The County Elections Officer assigned the letter “Z” to the measure. The City Council voted to submit an argument in favor of the measure and delegated the presentation of the draft of the argument to the Mayor, with the assistance of City staff and to bring the draft argument to the full Council for consideration, possible revisions, and approval, before submitting the argument and making it available for public examination.

The mayor approved the argument in favor of Measure Z along with City Attorney Sinco and it is up to the Council to approve, revise, or decline to submit this or any argument in favor of the measure, though staff does not recommend this.

CM Ramirez made a comment that it is important for residents to know that this measure won’t cost them anything, just visitors. City Attorney Sinco confirmed that.

Motion was made by Council Member Costa, Jr. and seconded by Council Member Robles approving the argument in favor of Measure Z. 5-0 Motion passed.

14. FUTURE AGENDA ITEMS
• Second reading for Ordinance No. 2022-503 – August 9th meeting • Pasquini Lease Agreement – move from August 9th to August 23rd meeting • Special City Council Meeting – Tuesday, August 16th

15. ANNOUNCEMENTS – COUNCIL ACTIVITY/COMMITTEE REPORTS
CM Robles
Hannah (Fuentes) is doing a great job with sports and recreation. On Wednesday for volleyball, there was a good turnout. In six (6) weeks, there are 5-6 teams. There’s a lot of energy with that.

Ms. Fuentes added here, “On Friday, those people who were coming at lunch time for basketball, a lot of them have started coming Friday evenings. Kids from the community have been coming in the evenings, too. Last Friday, there were about 20 people. It’s been pretty steady. For softball, there’ll be one game and then the playoffs. On Saturday, August 6th, the first game of the playoffs will be July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 13 of 15 at 10:00 a.m., then the second game will follow, and then whoever wins from those two games will be in the championship game at 1:00 p.m.”
This is the first time we’ve have any adult sports programs. We’re drawing a lot of excitement…a lot of energy. So, things are going really well.

There was a bonsai class on Sunday with about 20 people showing up. I attended the Resource Fair on Saturday…it was great theatre…and Hannah actually danced for us. Thank you.

Emily Dreiling, from the Recreation & Parks Commission, was selected to have cheerleaders for the Bulldogs football team. There’s been a good turnout for our softball games on Thursdays, too.

CM Costa, Jr.

Football started for our youth at O’Connell Park. They’re there Monday thru Friday.

Hannah Fuentes
She mentioned that there was a recent inquiry about recreation for children in Guadalupe. Currently, the City doesn’t have youth recreation services/programs but there will be in the future. However, there are independent groups that serve youth in the community. Guadalupe Bulldog football is one of them. El Padrecito Folklorico has dance classes for kids on Wednesdays and Thursdays, from 6:30 p.m. to 7:30 p.m. which is free. And Guadalupe Bulldogs fundraises to make the sport accessible to all in the community.” Mayor Julian added, “We’re working with the Boys & Girls Club on how to use Le Roy Park to expand services for youth in our community.” On Saturday, July 30th, we’ll have the Color Run 5K at O’Connell Park. Check-in is at 9:00 a.m. and the race starts at 10:00 a.m. Registration will be taken on that day, cash only. Prior registration is Friday from 4:00 p.m. to 6:00 p.m. Father Maseo of El Padrecito will be providing frozen yogurt to those who register on Friday.

CM Ramirez
Garret Matsuura, Shannon Sweeney and I met with Charter…quarterly meetings with the Charter representative to ensure residents know about services, prices/affordable of the plans and coordinating efforts with Broadband group. I have a direct line of communication to Charter if problems come up. Mr. Sweeney added, “Another was that we were asking them questions about redundancy and what they’re doing in terms of being able to demonstrate to the City their strengths and opportunities of their system.”
There’s a meeting this Friday. Many of the non-profits, myself and spearheaded by Los Amigos de Guadalupe will be working to coordinate services a little better in Guadalupe, making sure that everybody knows what’s going on…see if we can help each other, etc.

July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 14 of 15 CM Cardenas
Lorena Zarate and I finalized the new…for the assistance, originally was for loans, now we’re moving into grants for micro-enterprise assistance. That should be ready by August 9th. This will be for the people who went through classes and did everything. They can now apply for financial assistance.

Mayor Julian
Cal Van Meeting – Thursday, July 14th. There are 727 active vanpools in California, of which 83 are in Santa Barbara County and 19 in San Luis Obispo County. An on-going problem is that catalytic converters are being stolen. Vans will be converted to electric within the next year. August 10-11, 2022, Sacramento Lobby Day – CA Van Pool Authority Board of Directors meeting.

SBCAG approved $114,710 Measure A, Safe Routes to School, Bicycle and Pedestrian Program, Cycle 3 – City of Guadalupe…a cooperative agreement with SBCAG and the City. Measure A funding for the “11th Street Safe Routes to School” Project.

Broadband Technical Assistance Program - $500,000 Local Agency technical Assistance (LATA) grants for SBCAG to facilitate broadband deployment throughout Santa Barbara County. Guadalupe can apply for some of the monies, separate from this. We were recommended to apply in support of our City Broadband planning, outreach, and implementation.

Air Pollution Control District (APCD) – The “Clean Air Rooms Pilot Program” has 78 units to distribute, of which 70 will go to the Guadalupe School District’s classrooms and the rest to Casmalia. If there are any extra, they’d go to the City, Dunes Center and LADG.

Joint Cities – County Affordable Housing Task Force Group – a zoom meeting is scheduled for Thursday, July 28th, from 12:00 p.m. to 1:30 p.m. Discussion will be on “1st Time Homeowner Down Payment Program” and housing projects, recently approved and/or pending.

Los Puentes Unidos – Community Resource Fair & Theatrical Play – the Community Center for the Arts and Crafts from Fresno organized a theatrical play, highlighting the impacts of Covid, specifically on the Latino/Mixtec population in the San Joaquin Valley. There were 60 children and their parents who came to Guadalupe in a bus and cars. Lunch had been provided them at the Senior Center prior to the play which began at 4:00 p.m.

The play highlighted the lack of information and services to those populations outside the health care system. El Padrecito Folklorico Dance Group performed two dances in between the two acts of the play. The event was meant to identify the local services available to Guadalupe residents impacted by the pandemic. Various organizations and representatives from the community provided information to those in attendance. Many thanks to SER Jobs for Progress and local coordinator, Michael Jimenez, Armando Valdez and those from the Community Center for the Arts and Crafts, July 26, 2022 City of Guadalupe Council Meeting MINUTES Page 15 of 15 including all participants, actors and parents. Special thanks to the City staff for helping prepare the auditorium and courtyard for this event. Lastly, special thanks to Hannah Fuentes, Recreation Services Manager, for her organizational efforts and Folklorico performances.

Softball – game time is 5:00 p.m. Special mention that Hannah Fuentes prepares the field at O’Connell Park.

16. ADJOURNMENT
Motion was made by Council Member Cardenas and seconded by Council Member Costa, Jr. to adjourn the meeting. 5-0 Motion passed. The meeting adjourned at 7:37 p.m.

Prepared by: Approved by:
________________________________ _____________________________________ Amelia M. Villegas, City Clerk Ariston Julian, Mayor
Agenda Item No. 6D

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of August 9, 2022
________________________________ __________________________________ Prepared by: Approved by:

Larry Appel, Contract Planning Director Todd Bodem, City Administrator SUBJECT: Second Reading of Ordinance No. 2022-503 Amending the Official Zoning Map to Rezone a 1.08 Acre Area Located in the Gularte Tract from Single-Family Residential (R-1) to Multiple Dwelling High Density (R-3) Located at 4241 La Guardia Lane between Eleventh Street and La Guardia Lane, APNS 115-230-013, and 015
RECOMMENDATION:

It is recommended that the City Council adopt, on the second reading, Ordinance No. 2022-503 amending the official zoning map to rezone a 1.08 acre area located in the Gularte Tract from Single-Family Residential (R-1) to Multiple Dwelling High Density (R-3) located at 4241 La Guardia Lane between Eleventh Street and La Guardia Lane, APNS 115-230-013, and 015.

BACKGROUND:

The City Council introduced Ordinance No. 2022-503 at its meeting on July 26, 2022. This constitutes the second reading of the ordinance.

ATTACHMENT:

1. Ordinance No. 2022-503
ORDINANCE NO. 2022-503

AN ORDINANCE OF THE CITY OF GUADALUPE, CALIFORNIA, AMENDING THE OFFICIAL ZONING MAP TO REZONE A 1.08 ACRE AREA LOCATED IN THE GULARTE TRACT FROM SINGLE-FAMILY RESIDENTIAL (R-1) TO MULTIPLE-DWELLING HIGH DENSITY (R-3) LOCATED AT 4241 LA GUARDIA LANE BETWEEN ELEVENTH STREET AND LA GUARDIA LANE, APNS 115-230-013, and-015 WHEREAS, Mr. Lupe Alvarez and Mr. Gustavo Alvarez submitted an application to amend the Zoning Ordinance of the City of Guadalupe; and
WHEREAS, the project was deemed Complete for processing on June 21, 2022 and staff has analyzed the project for consistency with applicable Goals and Policies of the 2002 General Plan as well as applicable sections of the Guadalupe Zoning Ordinance; and WHEREAS, the City Council held a duly-noticed public hearing on July 26, 2022, at which time all interested persons were given the opportunity to be heard; and WHEREAS, notice of said hearing was published in the Santa Maria Times at least 10 days prior to the public hearing and was mailed to all property owners within 300 feet of said property; and WHEREAS, after taking public testimony and hearing evidence from City staff, the City Council finds, that the rezoning will be consistent with the approved General Plan amendment, applicable Articles of the City’s Municipal Code, and including findings pursuant to the California Environmental Quality Act; and
WHEREAS, the City Council has considered the entire administrative record, including application materials, staff report, the California Environmental Quality Act Notice of Exemption, and oral and written testimony from interested persons.

NOW, THEREFORE, the City Council of the City of Guadalupe does ordain as follows:

SECTION 1. The Official Zoning Map of the City of Guadalupe is hereby amended as follows:

Amend the Official Zoning Map to rezone two parcels totaling 1.08 acres to Multi-Family High Density Residential (R-3) as shown on Exhibit A (APNs 115-230-013, and -015).

SECTION 2. The Planning Department is hereby authorized to make the identified changes to the Zoning Map. In doing so, the City Clerk shall consult with the City Administrator and City Attorney concerning any changes deemed necessary.

SECTION 3. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), and the CEQA guidelines, and has been found to be exempt pursuant to §15332 of the CEQA Guidelines (Urban Infill) because it does not have the potential to create a significant physical environmental effect.

ATTACHMENT 1
SECTION 4. 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 on the 26th day of July 2022, by the following vote:

MOTION: EUGENE COSTA JR. / GILBERT ROBLES
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 on the 9th day of August 2022, by the following vote:

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:
__________________________________ ______________________________ Amelia M. Villegas, City Clerk Ariston Julian, Mayor
APPROVED AS IS TO FORM:
___________________________________
Philip F. Sinco, City Attorney
Attachment A – Zoning Map

EXHIBIT A
2022-002-GPZ

Page 1 of 2 ends

Agenda Item No. 6E

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of August 9, 2022

_______________________________ _________________________________ Prepared by: Approved by:

Lorena Zarate, Finance Director Todd Bodem, City Administrator SUBJECT: 2022-2023 Cost Allocation Plan
RECOMMENDATION:

That the City Council approve the fiscal year 2022-2023 Cost Allocation Plan by adopting Resolution No. 2022-72.

DISCUSSION:

The purpose of the City’s Cost Allocation Plan is to identify the total cost of providing specific City services. The total costs include direct and indirect costs. Please see the introductory pages of Attachment 2 for further details as to how indirect costs are allocated.

The goal of the Cost Allocation Plan is to provide a reasonable allocation of indirect costs in an equitable and consistent manner. A Cost Allocation Plan assists in identifying the total costs for the delivery of services both internally and externally. The plan is used for several purposes including:
• Grant Administration - Under federal cost accounting policies (Circular A-87), it is permissible to include indirect costs in accounting for grant programs. By establishing indirect cost rates, the cost allocation plan can be used in recovering the total costs (direct and indirect) associated with implementing grant programs.
• Reimbursement Transfers - The Cost Allocation Plan identifies the costs incurred by the General Fund in providing administrative support services to the City's other funds such as enterprise operations and special revenue funds.
• General Fund User Charges - Similar to ensuring that enterprise fund revenues fully recover their costs, the Cost Allocation Plan can also be used in determining appropriate user fees for General Fund services, such as planning applications, building permits and recreation activities, in ensuring that full cost of services are considered in setting rates. • Labor Rates - In preparing the Budget, the City has developed full compensation costs for each of its regular employees. Along with accounting for paid leave (such as vacation, sick and holidays), “full cost” hourly labor rates can be developed that appropriately include indirect costs. • Contracting-Out for Services - By identifying total costs, the cost allocation plan can also be helpful in analyzing the costs of contracting for services versus performing services in-house.

Lorena Zarate

Page 2 of 2 ends

It should be noted that the City has used the same methodology for developing the Cost Allocation Plan every fiscal year dating back to FY2014-2015. The Plan’s methodology is based on the adopted budget and must therefore be updated with the approval of a new budget every fiscal year.

FISCAL IMPACT:

The overall indirect cost rate decreased from 20.2 percent in the prior yearto 18.5 percent in 2022-2023.

The Cost Allocation Plan is used for General Fund Reimbursement Transfers in the City’s annual budget document. The current fiscal year’s budget includes transfers to the General Fund totaling $1,006,373.

This amount was partly a preliminary figure until the preparation of this Cost Allocation Plan. As reflected on Table 7 (page 24), total transfers to the General Fund per the 2022-2023 Cost Allocation Plan total $1,013,484, which results in an increase of funds of $7,111 to the General Fund. Staff will provide this change to the transfers into the General Fund at the mid-year budget review in January. A budget amendment and Resolution will be presented at that time, with other budget amendments if necessary.

ATTACHMENTS:

1. Resolution No. 2022-72

2. FY 2022-2023 Cost Allocation Plan
RESOLUTION NO. 2022-72

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUADALUPE, CALIFORNIA, ADOPTING THE COST ALLOCATION PLAN FOR FISCAL YEAR 2022-2023
WHEREAS, City Staff has prepared a Cost Allocation Plan for fiscal year 2022-2023; and WHEREAS, the purpose of the City’s Cost Allocation Plan is to identify the total cost of providing specific City services, which includes direct and indirect costs; and WHEREAS, the goal of the Cost Allocation Plan is to reasonably allocate indirect costs by determining an indirect cost rate; and
WHEREAS, the indirect cost rate has been determined in a fair, convenient and consistent manner under this Cost Allocation Plan for fiscal year 2022-2023.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Guadalupe that the attached Cost Allocation Plan for fiscal year 2022-2023 is hereby approved and adopted.

PASSED AND ADOPTED at a regular meeting on the 9th of August 2022 by the following vote:

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

I, Amelia M. Villegas, City Clerk of the City of Guadalupe, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2022-72 has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held August 9, 2022, and that same was approved and adopted.

ATTEST:
______________________________ ________________________________ Amelia M. Villegas, City Clerk Ariston Julian, Mayor
APPROVED AS TO FORM:
______________________________
Phillip F. Sinco, City Attorney
ATTACHMENT 1

COST ALLOCATION PLAN
Fiscal Year 2022‐23
City of Guadalupe

TABLE OF CONTENTS
INTRODUCTIONOverview: Purpose of the Cost Allocation Plan 1 Determining Direct and Indirect Costs 1
Allocating Indirect Costs 2
Uses of the Cost Allocation Plan 3
Plan Preparation 3
Summary 3INDIRECT COST ALLOCATIONS
Summary SchedulesSummary of Direct and Indirect Costs (Table 1) 4 Excluded Costs and Other Adjustments (Table 2) 5
Basis of Indirect Cost Allocations (Table 3) 6
Indirect Program Costs
City Administration Program Costs (Table 4.1) 7
Finance Program Costs (Table 4.2) 8
Summary of Indirect Cost Allocations
Summary by Fund Type (Table 5.1) 9
General Fund (Table 5.2) 10
Special Revenue Funds (Table 5.3) 11Enterprise Funds (Table 5.4) 12 Indirect Cost Allocations
City Council (Table 6.1) 13
Administration (Table 6.2)
General Administration 14Program Supervision 15Human Resources 16 City Attorney (Table 6.3) 17
Finance (Table 6.4)
General Finance & Accounting 18Payroll 19
Utility Billing 20
Business License Tax 21
Building Maintenance (Table 6.5) 22
City Hall Use Allowance (Table 6.6) 23

GENERAL FUND REIMBURSEMENTS
General Fund Reimbursement Transfers By Fund (Table 7) 24

ALLOCATION BASES
Full Time Staffing (Table 8.1) 25
Assigned Space (Table 8.2) 26

INTRODUCTION
- 1 -
OVERVIEWPurpose of the PlanThe purpose of the City’s Cost Allocation Plan is to identify the total costs of providing specific City services. Why is a separate cost accounting analysis required to do this? Because in almost all organizations—whether in the private or the public sector—the cost of producing goods or delivering services can be classified into two basic categories: direct and indirect costs.“Direct costs” by their nature are usually easy to identify and relate to a specific service. However, this is not the case for “indirect costs.” As such, if we want to know the “total cost” of providing a specific service, then we need to develop an approach—a plan—for reasonably allocating indirect costs to direct cost programs.

What Are Direct and Indirect Costs?
Direct costs are those that can be specifically identified with a particular cost objective, such as street maintenance, police protection and water service. Indirect costs are not readily identifiable with a direct operating program, but rather, are incurred for a joint purpose that benefits more than one cost objective.

Common examples of indirect costs include accounting, legal services, human resources and building maintenance. Although indirect costs are generally not readily identifiable with direct cost programs, their cost should be included if we want to know the total cost of delivering specific services.Budgeting and Accounting for Indirect Costs
Theoretically, all indirect costs could be directly charged to specific cost objectives; however, practical difficulties generally preclude such an approach for organizational and accounting reasons. As such, almost all organizations in both the private and public sector separately budget and account for direct and indirect costs at some level depending on their financial reporting needs and the level of sophistication and complexity of their operations.

Distributing Indirect Costs
However, in order to determine the total cost of delivering specific services, some methodology for determining and distributing indirect costs must be developed, and that is the purpose of cost allocation plans: to identify indirect costs and to allocate them to benefiting direct cost programs in a logical, consistent and reasonable manner.

Plan Goal: Reasonable Allocation of Costs. It is important to stress that the goal of the Cost Allocation Plan is a reasonable allocation of indirect costs, not a “perfect” one. By their very nature, indirect costs are difficult to link with direct costs. As such, in developing an allocation approach, it is important to keep this goal in mind balancing the cost and of effort of complicated allocation methods with the likely benefits from the end results.DETERMINING DIRECT AND INDIRECT COSTS
The first step in preparing the City's Cost Allocation Plan is determining direct and indirect costs. Program costs that primarily provide service to the public are identified as direct costs, whereas the cost of programs that primarily provide services to the organization are identified as indirect costs.Additionally, use allowance costs for City Hall have also been developed. In accordance with generally accepted accounting principles, only operating costs are considered in preparing the cost allocation plan. As such, capital outlay, debt service, interfund transfers and “pass‐through” costs (such as

INTRODUCTION
- 2 -
solid waste billing for the Valley Refuse and Garbage Company) are excluded from the calculations.

ALLOCATING INDIRECT COSTS
For general purposes, the City‐wide indirect cost rate can be used as the basis for allocating indirect costs. The indirect cost rate is simply the ratio between indirect and direct costs, which can be easily computed for the City as a whole once the direct and indirect cost base has been determined.

Citywide Indirect Cost Rate
Provided in Table 1 (page 4) is a summary of direct and indirect costs for the City of Guadalupe based on the approved 2022‐2023 Budget, along with the resulting citywide indirect cost rate. By applying the overall indirect cost rate to any specific direct cost program, the total cost of the program can be determined. For example, with an overall indirect cost rate of 18.5%, the total cost for a direct program of $100,000 in Guadalupe would be $118,500 with this approach.

Bases of Allocation
This method of cost allocation assumes that all indirect costs are incurred proportionately to the direct cost of the program. However, this may not be a reasonable assumption in all cases, as the benefit received from certain types of support service programs may be more closely related to another indicator of activity than cost.

For example, if a program service is primarily delivered through contract and does not have any City staffing directly associated with it, distributing payroll preparation and Human Resources costs to it may result in an inequitable allocation of costs. Because of this, the City’s Cost Allocation Plan establishes separate bases of allocation for each major indirect cost category. With this approach, indirect costs can be allocated to each direct cost program in a fair, convenient, and most importantly, consistent manner. Provided in Table 3 (page 6) is a summary of the primary methods of allocation used in distributing indirect costs to direct cost programs.

Some of these costs lend themselves to an easily justified, rational approach of distribution. For example, payroll and human resources costs are related to the number of employees serviced. Other costs may appear to be arbitrarily distributed; however, the allocation bases are consistent with generally accepted accounting principles, and recognize the concept that the cost of developing the information necessary to perform the cost allocations should not exceed the benefits likely to be gained.

Summary of Indirect Cost Allocations
A summary of the indirect cost allocations is provided in Tables 5.1 through

5.4 (pages 9 through 12), followed by the detailed allocations for each specific indirect cost program (Tables 6.1 through 6.6, pages 13 to 23).

Simple Method of Allocating Costs
In performing the cost allocations, all indirect costs have been allocated only to direct cost programs rather than using a more complex sequential allocation system. Although there are some conceptual difficulties with this approach, since all indirect costs are ultimately allocated to direct programs, the difference in the end result is insignificant. However, the cost of preparation, review and audit is significantly reduced; and how indirect costs are allocated is much more transparent.

For example, the cost of general administration by the City Administrator’s office is allocated solely to direct cost programs based on their operating budget. However, as the general administration program also benefits the other indirect cost programs such as human resources, finance and building maintenance, the cost allocations could appear to be distorted since no allocations are made to them. Similarly, payroll preparation also benefits the general administration program (in fact, it also benefits itself).

INTRODUCTION
- 3 -
USES OF THE COST ALLOCATION PLANBy identifying total program costs, the Cost Allocation Plan can be used as an analytical tool in many financial decision‐making situations, including:
 Grant Administration. Under federal cost accounting policies (Circular A‐87), it is permissible to include indirect costs in accounting for grantprograms. By establishing indirect cost rates, the cost allocation plan can be used in recovering the total costs (direct and indirect) associated with implementing grant programs.
 Reimbursement Transfers. The Cost Allocation Plan identifies the costs incurred by the General Fund in providing administrative support services to the City's other funds such as enterprise operations and special revenue funds.
o For example, although the City's administrative, legal services, finance, human resources and building
maintenance programs are budgeted and accounted for inthe General Fund, these programs provide support servicesto other City funds. The Cost Allocation Plan provides a clear methodology for determining this level of support in for the reimbursement of these costs. Recommended
reimbursement transfers based on the Cost Allocation Plan compared with budget estimates are provided areprovided in Table 7 (page 24).  General Fund User Charges. Similar to ensuring that enterprise fund revenues fully recover their costs, the Cost Allocation Plan can also be used in determining appropriate user fees for General Fund services, such as planning applications, building permits and recreationactivities, in ensuring that full cost of services are considered in setting rates.
 Labor Rates. In preparing the Budget, the City has developed full compensation costs for each of its regular employees. Along with accounting for paid leave (such as vacation, sick and holidays), “full cost” hourly labor rates can be developed that appropriately include indirect costs.
 Contracting‐Out for Services. By identifying total costs, the cost allocation plan can also be helpful in analyzing the costs of contracting for services versus performing services in‐house.

PLAN PREPARATION
In a true cost accounting system, indirect costs would be computed andallocated on an ongoing basis throughout the fiscal year based on actual costs. However, frequent updating in municipal finance would not serve any specific purpose—such as unit price control in a manufacturing company—but it would consume significant accounting resources. As such, the City’s Cost Allocation Plan is prepared annually based on the budget adopted by the Council.

SUMMARY
The Cost Allocation Plan makes determining total program costs possible byestablishing a reasonable methodology for identifying and allocating indirect costs to direct cost programs. Because of this, the Cost AllocationPlan can be a valuable analytical tool in a number of situations, including allocating organizational resources, performing expense analyses, evaluating the costs of performing services in‐house versus contract, establishing fees designed for full cost recovery, recovering indirect costs associated with grant programs and reimbursing support service costs provided by the General Fund to other funds.

DIRECT AND INDIRECT COST SUMMARY Table 1
General Fund City Council 12,680
Police 01 4200 2,905,300 City Administration 507,300
Fire 01 4220 1,264,400 City Attorney 110,000
Parks & Recreation 01 4300 369,372 Finance 590,883Permits 01 4405 253,060 Building Maintenance & Non Departmental 649,232 General Street Improvements(01 4451) -
Special Revenue Funds City Hall Use Allowance 183,400
Street & Roads Funds (20,22,71,83) 524,700Public Safety Funds (57,42,40,43) -Lighting and Landscape Maintenance (60, 65, 63) 129,770Library Fund (28) 11,000 Public Facilities Fund (36) -Park Development Fund (38) -CDBG Fund (67) 733,791City Hall Equip Fund (78) 25,000Traffic Mitigation (87) -Capital Facilities Fund (76) - Enterprise Funds
Water Fund Operating (10) 2,188,280
Wastewater Fund Operating (12) 1,769,730Solid Waste Fund (15) 20,820 Transit Fund (23) 881,470
TOTAL DIRECT COSTS 11,076,693 TOTAL INDIRECT COSTS 2,053,495

OVERALL INDIRECT COST RATE
Indirect Costs Divided by Direct Costs 18.5%
Under generally accepted accounting principles, capital outlay, debt service, interfund transfers and pass-through payments are usually excluded in calculating indirectcost rates; accordingly, only operating costs (less transfers) are considered in the City's cost allocation plan.

DIRECT COSTS INDIRECT COSTS
- 4 -
SUMMARY OF EXCLUDED COSTS AND OTHER ADJUSTMENTS Table 2 Excluded Costs and Other Reconciling Adjustments Cost Allocation PlanLess Non-Budget Costs: Indirect 2,053,495 City Hall Use Allowance (183,400) Direct 11,076,693
Plus Excluded Costs: Total $13,130,188General Fund Reimbursement Transfers Special Revenue Funds
Street & Roads Funds 121,600
Under generally accepted accounting principles, capital outlay, Public Safety Funds debt service, interfund transfers, and pass-through payments are Enterprise Funds usually excluded in calculating indirect cost rates; accordingly, only Water Fund Operating operating costs (less transfers and pass-throughs) are considered in 338,300 Wastewater Fund Operating the City's Cost Allocation Plan. 269,900Transit Fund 75,300Lighting/Landscape Districts 12,401CDBG Misc - Other Transfers
Measure A to Solid Waste -
Capital Outlay - Transfers to CIP fund 89
General Fund (Gen Plan Update) 40,840General Fund (Financial Actg Software) 21,353General Fund (Park Improvements) -General Fund (Library) 5,000General Fund (Street Improvements) 60,000 This schedule identifies these excluded costs, and along with otherSpecial Revenue Funds adjustments ("such as non-budgeted" use allowance costs), Street & Roads Funds reconciles the direct and indirect costs used in the Cost Allocation 2,014,270Park Development Fund Plan with the adopted budget. - Traffic Mitigation 120,000Capital Facilities Fund 529,539CDBG Funds (Leroy Park) 6,582,054 Enterprise Funds
Water Operating Fund - Deprc 185,963Water Capital Fund 865,387Transit Fund - Deprc. And capital 2,320,142Wastewater Operating Fund - Deprc. 443,885Wastewater Capital Fund 1,843,208Sewer Bond Fund -Pasadera Lighting & Landscape - Debt Service
Capital Facilities Fund -Police & Fire (moved to Capital Facilities Fund) - Parks & Rec - Non-Departmental 11,010 Streets -Transit -Water Operating Fund 93,363
Wastewater Operating Fund 66,800
Pass-Throughs
2022-23
Total 15,836,915 Total: All City Funds $28,967,103
RECONCILIATION TO 2022-23 BUDGET
- 5 -
BASIS OF INDIRECT COST ALLOCATIONS Table 3

INDIRECT COST PROGRAM BASIS OF ALLOCATION
City Council Operating BudgetCity Administration
General Administration Operating BudgetProgram Supervision Assigned ProgramHuman Resources Full-Time Equivalent Staffing City Attorney Operating Budget
Finance
General Finance Operating BudgetPayroll Full-Time Equivalent Staffing Utility Billing Water and Wastewater FundsBusiness License Tax General Fund Operating Budget Building Maint/Non Dept Assigned Space/Operating BudgetCity Hall Use Allowance Assigned Space/Operating Budget - 6 -
CITY ADMINISTRATION PROGRAM COSTS Table 4.1
General Program Human
Administration Supervision Resources Total
StaffingCity Administrator 0.75 0.20 0.05 1.00
Administrative Assistant 0.55 0.40 0.05 1.00
Human Resources Coordinator 1.00 1.00City Administrator 151,983 40,529 10,132 202,644 Administrative Assistant 81,976 59,619 7,452 149,048
Human Resources Coordinator - - 128,965 128,965
Total Staffing 233,960 100,148 146,550 480,657
Percent 20.8% 48.7% 30.5% 100.0%Other Operating Costs 12,899 5,521 8,080 26,500 Total Allocated 246,859 105,670 154,629 507,157
Direct Allocations
Animal Regulation (Police) 84,600
TOTAL $591,757
Percent
Allocated Cost
- 7 -
FINANCE PROGRAM COSTS Table 4.2
General Utility Business
Finance Payroll Billing License Tax Total
StaffingFinance Director 75.0% 5.0% 15.0% 5.0% 100.0%Business Manager 10.0% 62.5% 25.0% 2.5% 100.0%Account Clerk 67.5% 30.0% 2.5% 100.0%Account Clerk 5.0% 85.0% 10.0% 100.0%Finance Director 8,782 131,728 26,346 8,782 175,638 Business Manager 101,392 16,223 40,557 4,056 162,227
Account Clerk - 70,142 31,174 2,598 103,915
Account Clerk - 6,132 104,236 12,263 122,630
Total Staffing 224,200 110,200 202,300 27,700 564,400
Percent 39.7% 19.5% 35.8% 4.9% 100.0%Other Operating Costs 10,600 5,200 9,500 1,300 26,600 TOTAL $234,800 $115,400 $211,800 $29,000 $590,893
Allocated Cost
Percent
- 8 -
SUMMARY OF INDIRECT COST ALLOCATIONS Table 5.1
Special
General Revenue Enterprise
Fund Funds Funds Total
City Council 5,486 1,630 5,564 12,680City Administration General Administration 45,716 13,587 46,366 105,670
Program Supervision 74,058 49,372 123,429 246,859Human Resources 121,067 9,608 23,955 154,629 City Attorney 47,590 14,144 48,266 110,000
Finance
General Finance 101,582 30,191 103,027 234,800Payroll 90,352 7,170 17,878 115,400Utility Billing 211,800 211,800Business License Tax 29,000 29,000 Building Maintenance/Non Dept 529,929 38,930 80,373 649,232City Hall Use Allowance 144,649 12,645 26,106 183,400 TOTAL INDIRECT COSTS $1,189,428 $177,277 $686,764 $2,053,469Total Direct Costs 1,424,261 4,792,132 4,860,300 11,076,693Total Costs $5,981,560 $1,601,538 $5,547,064 $13,130,162Indirect Cost Rate 24.8% 12.4% 14.1% 18.5%

DIRECT COST PROGRAM SUMMARY
- 9 -
SUMMARY OF INDIRECT COST ALLOCATIONS Table 5.2
Parks &
Police Fire Recreation Permits Total
City Council 3,326 1,447 423 290 5,486City Administration General Administration 27,716 12,062 3,524 2,414 45,716 Program Supervision 101,880 7,406 12,343 37,029 158,658Human Resources 70,012 33,390 13,356 4,308 121,067 City Attorney 28,852 12,556 3,668 2,513 47,590
Finance
General Finance 61,586 26,802 7,830 5,364 101,582Payroll 52,250 24,919 9,968 3,215 90,352Utility BillingBusiness License Tax 17,582 7,652 2,235 1,531 29,000 Building Maintenance & Non Departmental 140,738 72,222 190,138 42,231 445,329City Hall Use Allowance 45,714 23,459 61,759 13,717 144,649TOTAL INDIRECT COSTS $549,654 $221,916 $305,244 $112,613 $1,189,428Total Direct Costs 2,905,300 1,264,400 369,372 253,060 4,792,132 Total Costs $3,454,954 $1,486,316 $674,616 $365,673 $5,981,560Indirect Cost Rate 18.9% 17.6% 82.6% 44.5% 24.8%

GENERAL FUND
- 10 -
SUMMARY OF INDIRECT COST ALLOCATIONS Table 5.3
CDBG & Cap Pub Fac, Library Streets & Public Lighting &Fac Fund & Park Dev Roads Safety Landscape Total City Council 840 41 601 149 1,630
City Administration
General Administration 7,000 343 5,006 1,238 13,587
Program Supervision 44,435 4,937 49,372Human Resources 9,608 9,608 City Attorney 7,287 358 5,211 1,289 14,144
Finance
General Finance 15,555 763 11,122 2,751 30,191
Payroll 7,170 7,170
Utility BillingBusiness License Tax
Building Maintenance 8,851 434 28,080 1,565 38,930
City Hall Use Allowance 2,875 141 9,121 508 12,645TOTAL INDIRECT COSTS $42,407 $2,081 $120,352 $12,437 $177,277Total Direct Costs 733,791 36,000 - 524,700 129,770 1,424,261 Total Costs $776,198 $38,081 $645,052 $142,207 $1,601,538Indirect Cost Rate 5.8% 5.8% 22.9% 9.6% 12.4%

SPECIAL REVENUE FUNDS
- 11 -
SUMMARY OF INDIRECT COST ALLOCATIONS Table 5.4
Solid Waste Water Wastewater Transit Total
City Council 24 2,026 2,505 1,009 5,564
City Administration -
General Administration 199 20,876 16,883 8,409 46,366
Program Supervision 49,372 49,372 24,686 123,429
Human Resources 11,331 11,331 1,293 23,955
City Attorney 207 21,731 17,575 8,754 48,266
Finance -
General Finance 441 46,386 37,514 18,685 103,027Payroll 8,456 8,456 965 17,878 Utility Billing 113,617 98,183 211,800
Business License Tax -
Building Maintenance 251 48,145 21,345 10,632 80,373
City Hall Use Allowance 82 15,638 6,933 3,453 26,106
-
TOTAL INDIRECT COSTS $1,203 $338,057 $269,619 $77,885 $686,764Total Direct Costs 2,188,280 20,820 881,470 1,769,730 4,860,300 Total Costs $22,023 $2,526,337 $2,039,349 $959,355 $5,547,064Indirect Cost Rate 5.8% 15.4% 15.2% 8.8% 14.1%

ENTERPRISE FUNDS
- 12 -
INDIRECT PROGRAM COST ALLOCATION Table 6.1
Indirect Cost Program City CouncilBudget $12,680Base of Allocation Operating Budget Base of Percent Cost
Direct Cost Program Allocation of Total AllocationGeneral Fund Police 2,905,300 26.2% 3,326
Fire 1,264,400 11.4% 1,447Parks & Recreation 369,372 3.3% 423Permits 253,060 2.3% 290 Special Revenue Funds
Street & Roads Funds 524,700 4.7% 601
Public Safety FundsLighting and Landscape Maintenance 129,770 1.2% 149Library Fund (28) 11,000 0.1% 13Public Facilities Fund (36)Park Development Fund (38)CDBG Fund (67) 733,791 6.6% 840City Hall Equip (78) 25,000 0.2% 29Capital Facilities Fund (76) Enterprise Funds
Water Fund Operating 2,188,280 19.8% 2,505Wastewater Fund Operating 1,769,730 16.0% 2,026Solid Waste Fund 20,820 0.2% 24Transit Fund 881,470 8.0% 1,009 Total Direct Cost Programs 11,076,693 100.0% $12,680
- 13 -
INDIRECT PROGRAM COST ALLOCATION Table 6.2(a)
Indirect Cost Program City Administration: General AdministrationBudget $105,670Base of Allocation Operating Budget Base of Percent Cost
Direct Cost Program Allocation of Total Allocation
General Fund
Police 2,905,300 26.2% 27,716
Fire 1,264,400 11.4% 12,062Parks & Recreation 369,372 3.3% 3,524Permits 253,060 2.3% 2,414 Special Revenue Funds
Street & Roads Funds 524,700 4.7% 5,006
Public Safety FundsLighting and Landscape Maintenance 129,770 1.2% 1,238Library Fund (28) 11,000 0.1% 105Public Facilities Fund (36)Park Development Fund (38)CDBG Fund (67) 733,791 6.6% 7,000City Hall Equip (78) 25,000 0.2% 238Capital Facilities Fund (76) Enterprise Funds
Water Fund Operating 2,188,280 19.8% 20,876Wastewater Fund Operating 1,769,730 16.0% 16,883Solid Waste Fund 20,820 0.2% 199Transit Fund 881,470 8.0% 8,409 Total Direct Cost Programs 11,076,693 100.0% $105,670
- 14 -
INDIRECT PROGRAM COST ALLOCATION Table 6.2(b)
Indirect Cost Program City Administration: Program SupervisionBudget 331,459 Base of Allocation Assigned Program
Percent Cost Animal Staff
Direct Cost Program of Total Allocation Regulation Planner Total General Fund
Police 7 7% 17,280 84,600 101,880
Fire 3 3% 7,406 7,406Parks & Recreation 5 5% 12,343 12,343Permits (includes Planning) 15 15% 37,029 37,029 Special Revenue Funds
Street & Roads Funds 18 18% 44,435 44,435
Public Safety FundsLighting and Landscape Maintenance 2 2% 4,937 4,937 Enterprise Funds
Water Fund Operating 20 20% 49,372 49,372
Wastewater Fund Operating 20 20% 49,372 49,372Solid Waste FundTransit Fund 10 10% 24,686 24,686 100.0
Total Direct Cost Programs 100% $246,859 $84,600 $331,459 - 15 -
INDIRECT PROGRAM COST ALLOCATION Table 6.2(c)
Indirect Cost Program City Administration: Human ResourcesBudget $154,629Base of Allocation Full-Time Equivalent Employees Base of Percent Cost
Direct Cost Program Allocation of Total Allocation
General Fund
Police 16.25 45.3% 70,012Fire 7.75 21.6% 33,390Parks & Recreation 3.10 8.6% 13,356Permits 1.00 2.8% 4,308 Special Revenue Funds
Street & Roads Funds 2.23 6.2% 9,608Public Safety Funds - - -Lighting and Landscape Maintenance - - - Enterprise Funds
Water Fund Operating 2.63 7.3% 11,331Wastewater Fund Operating 2.63 7.3% 11,331Solid Waste FundTransit Fund 0.30 0.8% 1,293 Total Direct Cost Programs 35.89 100.0% $154,629
- 16 -
INDIRECT PROGRAM COST ALLOCATION Table 6.3
Indirect Cost Program City Attorney
Budget $110,000Base of Allocation Operating Budget
Base of Percent Cost
Direct Cost Program Allocation of Total Allocation
General Fund
Police 2,905,300 26.2% 28,852
Fire 1,264,400 11.4% 12,556Parks & Recreation 369,372 3.3% 3,668Permits 253,060 2.3% 2,513 Special Revenue Funds
Street & Roads Funds 524,700 4.7% 5,211
Public Safety FundsLighting and Landscape Maintenance 129,770 1.2% 1,289Library Fund (28) 11,000 0.1% 109Public Facilities Fund (36)Park Development Fund (38)CDBG Fund (67) 733,791 6.6% 7,287City Hall equip (78) 25,000 0.2% 248Capital Facilities Fund (76) Enterprise Funds
Water Fund Operating 2,188,280 19.8% 21,731Wastewater Fund Operating 1,769,730 16.0% 17,575Solid Waste Fund 20,820 0.2% 207Transit Fund 881,470 8.0% 8,754 Total Direct Cost Programs 11,076,693 100.0% $110,000
- 17 -
INDIRECT PROGRAM COST ALLOCATION Table 6.4(a)
Indirect Cost Program Finance: General FinanceBudget $234,800Base of Allocation Operating Budget Base of Percent Cost
Direct Cost Program Allocation of Total Allocation
General Fund
Police 2,905,300 26.2% 61,586
Fire 1,264,400 11.4% 26,802Parks & Recreation 369,372 3.3% 7,830Permits 253,060 2.3% 5,364 Special Revenue Funds
Street & Roads Funds 524,700 4.7% 11,122
Public Safety FundsLighting and Landscape Maintenance 129,770 1.2% 2,751Library Fund (28) 11,000 0.1% 233Public Facilities Fund (36)Park Development Fund (38)CDBG Fund (67) 733,791 6.6% 15,555City Hall Equip (78) 25,000 0.2% 530Capital Facilities Fund (76) Enterprise Funds
Water Fund Operating 2,188,280 19.8% 46,386Wastewater Fund Operating 1,769,730 16.0% 37,514Solid Waste fund 20,820 0.2% 441Transit Fund 881,470 8.0% 18,685 Total Direct Cost Programs 11,076,693 100.0% $234,800
- 18 -
INDIRECT PROGRAM COST ALLOCATION Table 6.4(b)
Indirect Cost Program Finance: Payroll
Budget $115,400Base of Allocation Full-Time Equivalent Staffing Base of Percent Cost
Direct Cost Program Allocation of Total Allocation
General Fund
Police 16.25 45.3% 52,250Fire 7.75 21.6% 24,919Parks & Recreation 3.10 8.6% 9,968Permits 1.00 2.8% 3,215 Special Revenue Funds
Street & Roads Funds 2.23 6.2% 7,170Public Safety FundsLighting and Landscape Maintenance Enterprise Funds
Water Fund Operating 2.63 7.3% 8,456Wastewater Fund Operating 2.63 7.3% 8,456Transit Fund 0.30 0.8% 965 Total Direct Cost Programs 35.89 100.0% $115,400
- 19 -
INDIRECT PROGRAM COST ALLOCATION Table 6.4(c)
Indirect Cost Program Finance: Utility BillingBudget $211,800Base of Allocation Water and Wastewater Percent Cost
Direct Cost Program of Total AllocationGeneral Fund
PoliceFireParks & RecreationPermits
Special Revenue Funds
Street & Roads FundsPublic Safety FundsLighting and Landscape Maintenance Enterprise Funds
Water Fund Operating 53.6% 113,617
Wastewater Fund Operating 46.4% 98,183Transit Fund
Total Direct Cost Programs 100.0% $211,800
- 20 -
INDIRECT PROGRAM COST ALLOCATION Table 6.4(d)
Indirect Cost Program Finance: Business License TaxBudget $29,000Base of Allocation General Fund Operating Budget Base of Percent Cost
Direct Cost Program Allocation of Total Allocation
General Fund
Police 2,905,300 60.6% 17,582
Fire 1,264,400 26.4% 7,652Parks & Recreation 369,372 7.7% 2,235Permits 253,060 5.3% 1,531 Special Revenue Funds
Street & Roads FundsPublic Safety FundsLighting and Landscape Maintenance Enterprise Funds
Water Fund OperatingWastewater Fund OperatingTransit Fund Total Direct Cost Programs 4,792,132 100.0% $29,000
- 21 -
INDIRECT PROGRAM COST ALLOCATION Table 6.5
Indirect Cost Program Building Maintenance & Non Departmental Direct Indirect TotalBudget 564,632 $431,032 $133,600 $564,632 Base of Allocation Assigned Space/Operating Budget 4,017 12,960 16,977 Total
Base of Percent Cost Base of Percent Operating Cost
Direct Cost Program Allocation of Total Allocation Allocation of Total Allocation Allocation General Fund
Police 24.5% 105,696 2,905,300 3,178 26.2% 35,042 140,738Fire 13.2% 56,972 1,264,400 1,713 11.4% 15,250 72,222Parks & Recreation 43.1% 185,683 369,372 5,583 3.3% 4,455 190,138Permits 1,178 9.1% 39,179 253,060 2.3% 3,052 42,231 Special Revenue Funds -
Street & Roads Funds 5.0% 21,751 524,700 654 4.7% 6,329 28,080Public Safety Funds - -Lighting and Landscape Maintenance 1.2% 1,565 1,565 129,770 Library Fund (28) 0.1% 133 133 11,000Public Facilities Fund (36) -Park Development Fund (38) -CDBG Fund (67) 6.6% 8,851 8,851 733,791 City Hall Equip (78) 0.2% 302 302 25,000Capital Facilities Fund (76) - Enterprise Funds -
Water Fund Operating 5.0% 21,751 2,188,280 654 19.8% 26,394 48,145Wastewater Fund Operating 1,769,730 - 16.0% 21,345 21,345Solid Waste Fund 0.2% 251 251 20,820 Transit Fund - 881,470 8.0% 10,632 10,632
Total Direct Cost Programs 12,960 100.0% $431,032 11,076,693 100.0% $133,600 $564,632 Direct Cost Programs Indirect Cost Programs
- 22 -
INDIRECT PROGRAM COST ALLOCATION Table 6.6
Indirect Cost Program City Hall Use Allowance Direct Indirect Total Budget $183,400 $140,005 $43,395 $183,400Base of Allocation Assigned Space/Operating Budget 4,017 12,960 16,977 Total
Base of Percent Cost Base of Percent Operating Cost
Direct Cost Program Allocation of Total Allocation Allocation of Total Allocation Allocation General Fund
Police 3,178 24.5% 34,331 2,905,300 26.2% 11,382 45,714 Fire 1,713 13.2% 18,505 1,264,400 11.4% 4,954 23,459Parks & Recreation 5,583 43.1% 60,312 369,372 3.3% 1,447 61,759Permits 1,178 9.1% 12,726 253,060 2.3% 991 13,717 Special Revenue Funds
Street & Roads Funds 654 5.0% 7,065 524,700 4.7% 2,056 9,121 Public Safety Funds -Lighting and Landscape Maintenance 1.2% 508 508 129,770 Library Fund (28) 0.1% 43 43 11,000Public Facilities Fund (36) -Park Development Fund (38) -CDBG Fund (67) 6.6% 2,875 2,875 733,791 City Hall Equip (78) 0.2% 98 98 25,000Capital Facilities Fund (76) - Enterprise Funds
Water Fund Operating 654 5.0% 7,065 2,188,280 19.8% 8,573 15,638 Wastewater Fund Operating 16.0% 6,933 6,933 1,769,730
Solid Waste Fund 0.2% 82 82 20,820
Transit Fund 8.0% 3,453 3,453 881,470
Total Direct Cost Programs 12,960 100.0% $140,005 11,076,693 100.0% $43,395 $183,400 Rental rates are conservatively based on a market rental rate of 87.5 cents per month per square feet based on three factors: 1. A recent appraisal for Successor Agency property shows market rents in the City ranging from 60 cents to $1.20 per square foot per month for commercialuses. 87.5 cents is slightly below the middle of this range. 2. Commercial space is currently on the market for $1.00 per square foot per month.3. This market rate use allowance is made even more conservative based its application to “net” square footage (net of circulation, bathrooms, storage and othercommon areas), whereas commercial rates are typically based on “gross area.” Direct Cost Programs Indirect Cost Programs
- 23 -
GENERAL FUND REIMBURSEMENT TRANSFERS Table 7
2022-23
Per Cost
Per Estimate Allocation Imposed
Table 2 Plan Limitation* Variance Use
Special Revenue Funds
Street & Roads Funds 120,400 (1,200) 121,600 120,400
- -
Lighting and Landscape Maintenance 12,401 12,400 (1) 12,400 CDBG 42,407 4,104 46,511 - 4,104
City Hall Equip 1,445 1,445 1,445
Library Fund 636 636 636Enterprise Funds - -
Water Fund Operating 338,100 (200) 338,300 338,100
Wastewater Fund Operating 269,600 (300) 269,900 269,600 Solid Waste Fund 1,203 1,203 -
Transit Fund 75,300 77,900 2,600 77,900
Successor Agency per 22-23 ROPS 188,900 28 188,872 188,900 Total $1,006,373 $1,052,991 $4,104 $50,722 $1,013,484* Not currently allowed by funding sources need approval by the Department of Transportation - 24 -
ALLOCATION BASES: FULL-TIME STAFFING Table 8.1
General Fund City Council -
Police 16.25 Administration 3.00Fire 7.75 City Attorney -Parks & Recreation 3.10 Finance 4.00Permits 1.00 Building Maintenance 1.10 Special Revenue Funds City Hall Use Allowance -
Street & Roads Funds 2.23Public Safety Funds -Lighting and Landscape Maintenance - Enterprise Funds
Water Fund Operating 2.63
Wastewater Fund Operating 2.63Transit Fund 0.30
TOTAL DIRECT COST PROGRAMS 35.89 TOTAL INDIRECT COST PROGRAMS 8.10 TOTAL 43.99

DIRECT COST PROGRAMS INDIRECT COST PROGRAMS
- 25 -
ALLOCATION BASES: ASSIGNED SPACE Table 8.2
General Fund City Council 1,523
Police 3,178 Administration 1,377Fire 1,713 City Attorney -Parks & Recreation 5,583 Finance 1,117Permits 1,178 Building Maintenance - Special Revenue Funds
Street & Roads Funds 654
Public Safety FundsLighting and Landscape Maintenance
Enterprise Funds
Water Fund Operating 654Wastewater Fund OperatingTransit Fund TOTAL DIRECT COST PROGRAMS 12,960 TOTAL INDIRECT COST PROGRAMS 4,017 Cost* @ $0.90 per square foot per month ** $140,000 $43,400 Total Cost $183,400 Total Sq Ft 16,977
Direct Indirect
Percent of Total Square Feet 76.3% 23.7%

DIRECT COST PROGRAMS INDIRECT COST PROGRAMS
- 26 -

Page 1 of 2 ends

Agenda Item No. 6F

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of August 9, 2022

_______________________________ _________________________________ Prepared by: Approved by:

Nicole Segovia, LADG Todd Bodem, City Administrator
Community Development Coordinator
SUBJECT: Revisions to the City of Guadalupe Microenterprise Financial Assistance Guidelines RECOMMENDATION:

It is recommended that the City Council approve revisions to the City’s Microenterprise Financial Assistance Guidelines to add newly developed components.

DISCUSSION:

Any changes to the CDBG Microenterprise Assistance Guidelines (Technical and Financial) require City Council approval. The City Council approved the original guidelines (Technical and Financial) on August 11, 2020 (Resolution No. 2020-69). Thereafter, the City Council approved some minor revisions to the guidelines on October 12, 2021 (Resolution No. 2021-81). The guidelines referred to a Loan Advisory Committee (LAC) but did not specify who would be a part of it. LADG and City staff recommended that “positions” for the members of this committee be identified instead of actual persons and listed the positions for this committee. It was also noted that some loan requirements had been excluded from the guidelinesto allow the LAC to determine what loan requirements are needed. This included subjects like credit score minimums, maximum loan amounts, if grants would be included, when loans are given, when are grants given, and when both are given. The LAC and LADG staff have been meeting every two weeks to make the final changes to the guidelines. These changes can be seen in the body of the guidelines (see Attachment No. 2 to this report) and in three Guideline Attachments B, C, and D (see Attachment Nos. 3,4, and 5 to this report).

It should be noted that the LAC determined/recommended in the guidelines that this first round of financial assistance to Guadalupe businesses or Guadalupe residents wanting to start a business would be in the form of grants and not loans. The requirement for the grants is outlined in the Grantee’s Financial Assistance Term Sheet (Guideline Attachment D). (See Attachment No. 5 to this report).

Presently, we have seven (7) microenterprise clients who have completed the City’s microenterprise technical assistance class and can submit their application for possible grants should these changes are approved.

Nicole Segovia

Page 2 of 2 ends

ATTACHMENTS:

1. Resolution No. 2022-73

2. Microenterprise Financial Assistance Guidelines (revisions shown in yellow)

3. Microenterprise Financial Assistance Application (Attachment B)

4. Sample Grant Agreement Form (Attachment C)

5. Grantee’s Financial Assistance Term Sheet (Attachment D) RESOLUTION NO. 2022-73

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUADALUPE, CALIFORNIA, APPROVING REVISIONS TO THE CITY’S CDBG-ED MICROENTERPRISE FINANCIAL ASSISTANCE GUIDELINES WHEREAS, the City Council approved the State CDBG Microenterprise Financial Assistance Guidelines (“Guidelines”) on August 11, 2020 (Resolution No. 2020-69); and WHEREAS, the City Council approved minor revisions to the Guidelines on October 12, 2021 (Resolution No. 2021-81); and
WHEREAS, the Guidelines established an advisory committee to finalize the type of financial assistance the City would be offering and review and approve all applications for financial assistance; and WHEREAS, the advisory committee and the staff at Los Amigos de Guadalupe have developed the remaining Guideline revisions to allow the City to begin offering financial assistance; and WHEREAS, the City is required to approve any changes to the Guidelines; and WHEREAS, the City Council has reviewed the proposed revisions to the CDBG-ED Financial Assistance Guidelines which are attached to the staff report for this item.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Guadalupe that the revisions to the CDBG-ED Financial Assistance Guidelines are approved.

PASSED, APPROVED AND ADOPTED at a regular meeting on the 9th day of August 2022 by the following vote:

MOTION:

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. 2022-73, has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held August 9, 2022, and that same was approved and adopted.

ATTEST:
______________________________ ____________________________________ Amelia M. Villegas, City Clerk Ariston Julian, Mayor
ATTACHMENT 1
APPROVED AS TO FORM:
______________________________
Philip F. Sinco, City Attorney
Guidelines
For
Microenterprise
Financial Assistance
Program
Funded By
City of Guadalupe
With
Community Development Block Grant
Adopted: 10/12/2021
Revised 8/9/22
ATTACHMENT 2
Adopted: 10/12/2021

TABLE OF CONTENTS

1. INTRODUCTION 1

2. MICROENTERPRISE FINANCIAL ASSISTANCE PROGRAM

OVERVIEW

1. Program Administration 1

2. Program Service Area 1

3. Funding Source for Loans and Grants 2

3. CDBG PROGRAM REQUIREMENTS

1. Eligible Program Applicants 2

2. Ineligible Program Applicants 2

3. Eligible Use of Funds 2

4. Ineligible Use of Funds 3

5. Microenterprise Technical Assistance Availability 3

6. Meeting Microenterprise Definition Requirement 3

7. Meeting CDBG National Objective Requirement 3

8. Other CDBG Federal Laws and Regulations 4

4. APPLICATION PROCESSING FOR LOANS / GRANTS

1. Program Marketing and Outreach 5

2. Equal Opportunity Compliance 6

3. Loan Application Process 6

4. Program Loan Microenterprise Approval Committee (LMAC) 6

5. Loan Applicant Confidentiality 6

6. Dispute Resolution/Appeals Procedure 6

7. Exceptions / Special Circumstances 7

8. Loan Closing Process and Disbursing Funds 7

5. LOAN TERMS AND SECURITY

1. Two Types of Financial Assistance 7

2. Loan Terms and Fees 8

3. Collateral and Security Requirement 8

4. Loan Security Position 8

5. Loan-to-Value Ratio 8

6. Debt Service Coverage 8

6. LOAN UNDERWRITING PROCESS

1. General Credit Requirements 9

2. Management Capacity Market Demand 9

3. Additional Project Underwriting Criteria 9

7. LOAN SERVICING

1. Loan Collection and Servicing 10
Adopted: 10/12/2021

8. GRANTS FOR MICRO BUSINESS EXPANSION

1. Small Grants for Limited Expansion Activities 11

2. Underwriting and Administration of Grants 11
ATTACHMENT A: GRANTEE’S CITY’S EXECUTED RESOLUTION
ADOPTING GUIDELINES (Revision 8/9/2022)
ATTACHMENT B: MICROENTERPRISE FINANCIAL ASSISTANCE

APPLICATION FORMS
ATTACHMENT C: SAMPLE LOAN AND GRANT AGREEMENT FORMS
ATTACHMENT D: GRANTEE’S CITY’S SAMPLE BUSINESS LOAN

SERVICING POLICIES FINANCIAL ASSISTANCE TERM SHEET
1 Adopted: 10/12/2021 Revised 8/9/2022

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

MICROENTERPRISE FINANCIAL ASSISTANCE PROGRAM GUIDELINES

1.1 INTRODUCTION
The City of Guadalupe hereafter referred to as the “Grantee” “City” has established a microenterprise financial assistance program, hereafter called “the Program”. The Program is designed to stimulate economic growth and create businesses that will improve the living conditions of residents in the community.

The Program provides affordable financing to eligible businesses to start up or expand. The Program is useful for small startup businesses as the loan, grant or forgivable loan terms are flexible and can be tailored to the needs of the business. These financial assistance guidelines have been formally adopted by the Grantee City and approved by the California Department of Housing and Community Development, hereafter called “the Department”. See Attachment A for a copy of the adopting resolution.

The present microenterprise financial assistance method (loans, grants, and/or forgivable loans) will be outlined in the City’s Term Sheet (ATTACHMENT D).

Any changes to this term sheet will require City Council approval.

Within the Guidelines the use of “grants, loans and forgivable loans” are the options available to the City. The Term Sheet will give an applicant the present method(s) being used.

2.0 MICROENTERPRISE FINANCIAL ASSISTANCE PROGRAM

OVERVIEW

2.1 PROGRAM ADMINISTRATION
The Grantee City or Operator will:
● Originate microenterprise financial assistance loans and/or grants; ● Market the Program;
● Accept and process applications;
● Complete 24 Code of Federal Regulations Part 5 Income Eligibility qualification and document the number of employees;
● Underwrite and recommend approval of loans and grants; ● Ensure a timely loan closing and disbursement of funds; ● Maintain loan files and fiscal records;
● Administer state grants and program income used to fund this program; ● Work with program participants and ensure compliance with these program guidelines; and,
● Ensure that all those receiving financial assistance are given Technical Assistance on owning and operating a business.

The Grantee’s City staff will serve as the primary contact with the Department. 2 Adopted: 10/12/2021 Revised 8/9/2022
The Grantee City and Operator will follow these adopted program guidelines.

2.2 PROGRAM SERVICE AREA
Financing under this Program is available to all eligible businesses or persons located in the Grantee’s City’s jurisdictional limits. These CDBG funds may not be used in entitlement jurisdictions that receive CDBG funds directly from the federal Department of Housing and Urban Development (HUD) entitlement program. Funds may not be provided to program participants outside of Grantee’s City’s jurisdiction.

2.3 FUNDING SOURCE FOR LOANS AND GRANTS
The Program is paid for with CDBG funds provided by HUD to the Department.

As such, these funds have a number of federal requirements that must be met, as described below. CDBG funds are either awarded to the Grantee City through a competitive NOFA process or originate from local CDBG program income (PI) funds approved by the Department in writing.

3.0 CDBG PROGRAM REQUIREMENTS

3.1 ELIGIBLE PROGRAM APPLICANTS
All eligible applicants must meet the definition of a microenterprise. For CDBG purposes:
● A microenterprise is defined as a commercial enterprise that has five or fewer employees, one or more of whom owns the enterprise; or ● Persons developing microenterprises means persons who have expressed an interest in, or who are after an initial screening process, expected to be actively working toward developing businesses, each of which is expected to be a microenterprise at the time it is formed.

Eligible applicants must have a physical business address in the program service area. Individuals wishing to start a new business are also eligible applicants, but they must provide proof that their primary residence is located in the program service area and agree that their future business will exist in the program service area.

Eligible applicants documented as meeting the definition of microenterprise are hereafter referred to as “program participants”.

3.2 INELIGIBLE PROGRAM APPLICANTS
An ineligible existing business applicant is one that has a physical business location outside of the service area. An ineligible person applying for the program is one with a residence outside of the service area. Nonprofits are not an eligible microenterprise business. An applicant currently participating in a microenterprise TA or financial assistance program offered in the same service area as this program is not eligible.
3 Adopted: 10/12/2021 Revised 8/9/2022

3.3 ELIGIBLE USE OF GRANT OR LOAN FUNDS
The Grantee City or Operator will review the project scope of work proposed by the business. The Grantee City and the loan/grant applicant will collect third party cost estimates for all project costs at the application stage. CDBG funds are restricted to certain eligible costs, such as:
● Operating capital for staff salaries or leasing space; ● Purchasing inventory, supplies, computer programs for accounting and inventory control or furniture, fixtures and equipment (FF&E); ● Rehabilitation of owner occupied or leased space (tenant improvements) including engineering, architectural and local permits or fees; ● Equipment purchase (with or without installation costs); ● Refinancing of existing business debt in conjunction with financing other eligible costs, except no credit cards; and
● Marketing materials and advertising with website development and servicing.

3.4 INELIGIBLE USE OF FUNDS
Funds under this Program will not reimburse expenses incurred prior to Grantee City approval of loan or grant. Program funds will not be used to pay off nonbusiness debt, such as personal credit cards not associated with the business. Loan/Grant funds may not be used for personal expenses such as buying a new family car or making repairs to a participant’s home, unless the repairs are required to allow a home business or operate (for example, require gaining a license to operate a daycare center). CDBG funds may not be shifted from one approved type of cost to another without resubmitting to the Grantee or Operator for approval. Funds may not be used to support other businesses in which the borrower may have an interest.

3.5 MICROENTERPRISE TECHNICAL ASSISTANCE AVAILABILITY
The Grantee City will require all loan/grant applicants for this Program to attend one or more technical assistance (TA) classes offered by a Grantee City approved local Small Business Development Center (SBDC) or other local private for profit/nonprofit business development agency. Each applicant must have a letter of recommendation from the local SBDC or approved TA agency which states, at a minimum, that the applicant has completed or updated a professional business plan, has adequate management capacity and a defined financial management system in place to operate the existing or proposed business successfully. The local business development agency will confirm that the business and the owner are both financially sound and possess the capacity to execute the new business plan in order to be successful with the use CDBG funds. Each applicant will be required to complete a microenterprise business class offered by the City. The successful completion of the business course will include a certificate of completion that will be required to be submitted as part of their application for funding. Please see the City of Guadalupe’s Microenterprise 4 Adopted: 10/12/2021 Revised 8/9/2022
Technical Assistance Guidelines for additional information on this section.

3.6 MEETING CDBG MICROENTERPRISE DEFINITION REQUIREMENT Loan/Grant applicants for this Program must meet the CDBG definition of a microenterprise business. The CDBG definition is a business that has five (5) or fewer employees, including the owner(s). All employees, part time and full time, on the business payroll at the time of loan application will be counted. The term “employee” includes all owners of the business on the payroll, even if the owner’s “salary draws” are not on a regular basis. The Grantee City will require the business to provide third party records documenting the current number of employees on the payroll, including all owners of the business. To be eligible for CDBG microenterprise financial assistance, the microenterprise business owner(s) must also be income eligible per Section 3.7 of these guidelines.

3.7 MEETING CDBG NATIONAL OBJECTIVE REQUIREMENT
Under federal regulations, use of CDBG funds for microenterprise activities must meet the national objective of benefit to low/mod income persons under the Limited Clientele definition. As such, all microenterprise owners must be documented as meeting HUD’s low/mod income definition prior to receiving any Program services.

This is in addition to meeting the “definition” of a microenterprise, as described above in Section 3.6. The Grantee City will verify the microenterprise owner(s) meet HUD’s low/mod income requirement by completing the Part 5 income verification process. Financial assistance program applicants must submit documentation to complete the Part 5 income verification process to determine program eligibility. (Separate files will be maintained by the Grantee City for each CDBG Microenterprise Program).

As with other microenterprise program activities, if the Grantee City determines that the applicant income information is not accurate and the program participant is over HUD’s income limits, then all program services must cease immediately.

3.8 DECLARED DISASTER FINANCIAL ASSISTANCE
When a local, state or federal disaster is declared, grants and forgivable loans may be offered to eligible microenterprise businesses that have been directly affected by the disaster. Covid 19 pandemic is an example of a disaster that has had a significant effect on Guadalupe businesses.

Under this program, normal rules, determined by the Financial Microenterprise Advisory Committee (MAC) will be altered as needed to assist with business recovery. For example, this program requires program participants to complete Microenterprise Technical Assistance prior to receiving Microenterprise Financial Assistance from the City. In the case of a declared disaster, what may normally be a loan could be offered as a grant or forgivable loan, allowing the program participant to receive financial assistance prior to completing the Technical Assistance. A grant or forgivable loan allows the City to provide financial assistance immediately but ensuring that the program participant does complete 5 Adopted: 10/12/2021 Revised 8/9/2022
the Technical Assistance before the loan is forgiven, or as a condition of the grant agreement.

3.9OTHER CDBG FEDERAL REGULATIONS
There are a number of other federal laws and state regulations that are triggered with use of CDBG funding. The Grantee City, if applicable, will take the lead and ensure compliance with these requirements. Any impacts on a proposed project will be explained at the time of loan application screening so that the loan applicant knows and understands how the project might be impacted by these overlays.

An environmental review is required by HUD for each business funded with CDBG monies (24 CFR 58). The review must be completed prior to any activities commencing with the business and the review must encompass all aggregated activities for the business. The environmental review will comply with HUD’s regulations regarding the National Environmental Policy Act (NEPA). The Grantee City is required to complete and certify the NEPA review along with any State environmental review under California’s Environmental Quality Act (CEQA).

The level of environmental review is determined by the type of proposed project and the associated activities. The loan applicant will be informed of any additional loan processing time due to the NEPA review. No costs will be charged to the applicant for this process.

Federal Davis Bacon regulations and related compliance Acts are required when utilizing CDBG funding for construction which may add additional costs to projects. In addition, state prevailing wage may be triggered with the use of CDBG funding. The Grantee City will work with applicants to ensure that funded business projects are in compliance with state and federal prevailing wage laws.

Applicants will be informed of any additional time, costs or administrative work required due to the prevailing wage regulations and any additional costs may be incorporated into the business loan.

Federal acquisition and Relocation laws may be triggered when using CDBG funds (24 CFR 570.606). Acquisition laws, both federal and state, must be followed when CDBG funds are used to assist in the purchase of real property.

In the same way, federal and state relocation laws apply if a person or a business is displaced because of the use of CDBG funding. The Grantee City will work with loan applicants to ensure that the business is in compliance with any state or federal acquisition /relocation laws triggered by the project. Applicants will be informed of any additional time or costs or administrative work required due to acquisition or relocation regulations.

Federal regulations require the use of CDBG program income (PI) first when the Grantee City is operating a loan program activity with an open grant that is the same as an existing PI revolving loan fund (RLF) activity. 6 Adopted: 10/12/2021 Revised 8/9/2022
All businesses receiving funds under this Program will be required to obtain a Dun and Bradstreet DUNS number. The DUNS number is free and can be obtained online. A copy of the printout with the applicable DUNS number should be kept in the program participant file.

Verification must be provided to the Grantee City that all businesses and participants are not on the federal debarred list.

The Department requires the Grantee City collect certain income and demographic data from all program applicants and participants.

No conflict of Interest is allowed, in accordance with Title 24, Section 570.611 of the code of Federal Regulations. As such no member of the governing body and no official, employee or agent of the local government, nor any other person who exercises policy or decision-making responsibilities (including members of the loan committee and officers, employees, and agents of the loan committee, the administrative agent, contractors and similar agencies) in connection with the planning and implementation of the CDBG program shall directly or indirectly be eligible for this program.

Grantee City or Program Operator will verify and certify that a conflict of interest does not exist with the business or applicant. Exceptions to this policy can be made only after Grantee’s City’s legal counsel makes a written determination that potential conflicts are acceptable.

4.0PROGRAM OPERATIONS AND LOAN/GRANT PROCESSING

4.1 PROGRAM MARKETING AND OUTREACH
Program marketing will be conducted by the Grantee City or the Program Operator. Examples of marketing include media coverage with ads in local papers, distribution of marketing brochures to local chambers of commerce and business networking organizations. Presentations will be scheduled for these groups as well as real estate groups, local commercial banks and Business Associations. Social Media will also be utilized along with appropriate websites.

4.2 EQUAL OPPORTUNITY COMPLIANCE
This Program will be implemented in ways consistent with the Grantee’s City’s commitment to state and federal equal opportunity laws. No person or business shall be excluded from participation in, denied the benefit of, or be subjected to discrimination under any program or activity funded in whole or in part with CDBG program funds on the basis of his or her religion, religious affiliation, age, race, color, ancestry, national origin, sex, marital status, familial status (number or ages of children), physical or mental disability, sexual orientation, or other arbitrary cause.

4.3 LOAN/GRANT APPLICATION PROCESSING
7 Adopted: 10/12/2021 Revised 8/9/2022
Loan applications will be processed on a first come first served basis after the microenterprise has received adequate technical assistance required under this program. See Attachment B for microenterprise financial assistance application forms. The Grantee City will accept loan applications and review for income eligibility, number of employees and financial viability. Applications that do not meet basic requirements of the Program will be returned with an explanation of needed requirements. The Grantee City or Program Operator will interview the applicants and review the application for funding in combination with these program guidelines. A site visit may be conducted if the business is in operation.

The Grantee City or Program Operator will compile a loan package with all the credit, financial, and underwriting information required for loan analysis. All loan documents from application through loan approval and disbursement of CDBG funds will be contained in a project file for future monitoring by the Department.

4.4 PROGRAM LOAN MICROENTERPRISE ADVISORY COMMITTEE
(MAC)
The MAC shall have an odd number of members. The membership of the LMAC will be approved by the Guadalupe City Council. LMAC members shall volunteer for this board. The LMAC membership is as follows:

1. The City of Guadalupe Finance Director

2. A community member approved by the two other committee members.

Designated staff member of the Economic Development Collaborative (EDC)/Small Business Development Center (SBDC)

3. Member of the City of Guadalupe Council, assigned by the Mayor.

LMAC loan/grant review will take place for each loan/grant applicant prior to funding. LMAC meetings will be scheduled by Grantee City or Program Operator staff once a loan/grant has been underwritten/determined complete and is ready for review and approval. LMAC members are responsible for reviewing each loan/grant application funding proposals and making recommendations to a Guadalupe City Council approved Grantee City staff. LMAC may request additional information and or attach contingencies for final approval and loan, grant or forgivable loan closing.

4.5 LOAN APPLICANT CONFIDENTIALITY
All personal and business financial information will be kept confidential. Program participant files with personal and business confidential information will be kept in locked secured storage units.

4.6 DISPUTE RESOLUTION/APPEALS PROCEDURE
Any person applying for a financial assistance loan through the CDBG program has the right to appeal if their application is denied. The appeal must be made in writing to the Grantee City. A written response to the appeal will be provided to the applicant by the Grantee City within 30 days of receipt of the applicant’s appeal letter.
8 Adopted: 10/12/2021 Revised 8/9/2022

4.7 EXCEPTIONS / SPECIAL CIRCUMSTANCES
Exceptions are defined as any action, which would depart from policy and procedures stated in the guidelines.

4.8 LOAN CLOSING PROCESS
Upon local LMAC approval, submission of the CDBG Loan/Grant Certification Form to HCD (or any other approval documentation/form required at the time) and meeting of all special conditions of funding, the Grantee City will prepare for the loan, grant or forgivable loan closing.

Should the financial assistance be in the form of a loan, a local title companies may process all loan closings, especially when real property is being secured.

The Grantee City will prepare the escrow loan closing documents; prepare title and lien searches, and UCC-1 filings, as appropriate. Escrow loan closing costs may be paid with Program funds. After closing, the Grantee City requests funds from the Department or local finance department (depending on the source of funds; open grant or local program income funds).

All agreements and documents should be reviewed by the Grantee’s City’s legal counsel, as necessary. See Attachment C of these guidelines for the Grantee’s City’s Sample Loan and Grant Agreement Forms.

CDBG funds will only be disbursed for reimbursement to the borrower for documented eligible project expenses or may be paid directly to third party vendors for project costs. Ongoing operating costs for the business for working capital will be reimbursed based on monthly documented costs. With MAC approval, advances may be given.

5.0LOAN TERMS AND SECURITY

5.1 TWO TYPES OF FINANCIAL ASSISTANCE
Eligible microenterprise businesses may be awarded up to $30,000 in loan funds with this Program. Loans made with this Program require repayment.

Grants funds may also be awarded with this Program. Grants of up to $5,000 $10,000 may be provided for eligible microenterprise businesses/owners as an alternative financial assistance determined by the MAC and based on the present financial conditions. hat are not able to afford or support a loan. See attachment D for the present financial assistance method being used by the City. An applicant may not receive both a grant and a loan simultaneously with this program. If a business receives a grant and is successful, such that the business documents the ability to support debt, a financial assistance loan application may 9 Adopted: 10/12/2021 Revised 8/9/2022
be processed. Grant applicants receive the same review and analysis of financial feasibility of the business and personal financials, but loan rates and terms with collateral and security do not apply.

Any combination of loan and grant maybe offered, with LMAC approval, when the requested fund covers both tangible (operating capital) and non-tangible (marketing budget).

Under some circumstances, for example, declared disasters, the LMAC may approve forgivable loans so that financial assistance can be offered prior to the business completing technical assistance.

The LMAC will establish and publish loan terms or underwriting criteria for microenterprise financial assistance program with these guidelines (see attachment D). These requirements with be added to the guidelines and approved by City Council Resolution prior to implementation of the criteria.

5.2 LOAN TERMS AND FEES
Loan terms can range from five to twenty years; depending on the type of financing and the security being offered by business. Typically, the loan terms are longer and more flexible than those used by conventional commercial lenders.

The interest rate for loans will vary based on cash flow needs of business. In certain cases, interest only payments may be available for up to six months based on the need of the business for cash flow.

A loan servicing fee will be charged to the borrower upon close of the loan. This fee will be used to set up the loan servicing entity. Borrowers will be provided with a loan disclosure detailing all fees associated with the loan transaction.

There is no loan pre-payment penalty.

All loans terms, with Section 5, with require greater degree of scrutiny depending on the size of the loan. While grants may not be reviewed in the same manner, the degree to which the business is able to operate into the future will be considered.

5.3 COLLATERAL AND SECURITY REQUIREMENTS
All loans may be collateralized to the greatest extent possible. Both personal and business assets will be reviewed for collateral coverage. Types of collateral may include:
● Liens on real property with Deeds of Trust;
● Liens on machinery, equipment, or other fixtures;
● Lease assignments, as appropriate;
● Grantee City Named as Beneficiary on Life Insurance;
10 Adopted: 10/12/2021 Revised 8/9/2022
● Other collateral, as appropriate; and
● Personal and corporate guarantees.

5.4 LOAN SECURITY POSITION
All loans will be secured in the strongest possible position to ensure loan repayment in the event of a default. Loans may be secured in a second or third lien position.

5.5 LOAN-TO-VALUE RATIO (LTV)
All loans will be secured to the highest degree possible, up to and more than 100% of collateral value. In some instances the collateral being used to secure the loan may already be fully encumbered by another Lender, in which case the LTV ratio may exceed 100%. The Grantee City may choose to lien these assets although they are over encumbered.

5.6 DEBT SERVICE COVERAGE
The business must show that the loan payment will be covered by the projected revenue of the business. In addition, the business owner should be able to pay themselves a reasonable living wage. Typical debt coverage ratios for the program are 1.25; coverage as low as 1.10 will be accepted on a case by case basis.

The debt ratio will be calculated for the borrower’s personal financials as well as the business financials. Borrower’s personal financials and debt service levels must be reviewed to ensure the existing or proposed microenterprise business is not adversely impacted by negative personal financials. In the same way, the business must contribute to the borrower’s financial health. This is necessary because the financials of the borrower and business are closely tied.

6.0 LOAN UNDERWRITING PROCESS

6.1 GENERAL CREDIT REQUIREMENTS
In the private sector, credit scoring is a generally accepted means to underwrite certain loans, particularly small loans where the cost of underwriting can exceed the interest and fee income generated by that loan. The standard in the banking industry is a credit scoring system developed by the Fair Isaac Corporation. This system uses a formula that is applied to raw data in consumer credit files of the three largest credit-reporting bureaus. The result is known as the FICO score.

The FICO credit score ranges from 300 to 850 and quantifies an individual’s creditworthiness. In general, a credit score of 680 or above is considered an acceptable risk, scores at or below 620 are considered poor risks.

Applicants with FICO scores 620 and below will require targeted analysis, economic impact assessment, and mitigation for the identified credit risk. 11 Adopted: 10/12/2021 Revised 8/9/2022

6.2 MANAGEMENT AND CAPACITY REQUIREMENTS
A Loan Applicant must show:
● Ability to operate a business successfully;
● Adequate borrowing ability or equity to operate with the new loan payments, on a sound financial basis;
● The proposed loan is of sound value and provides for the current and future needs of the business; and
● The past earning records and future prospects of profits.

6.3 ADDITIONAL PROJECT UNDERWRITING CRITERIA
Each project/business will be evaluated based on how it has performed in the past and its future financial forecasts:
● The amount of private dollars used as leveraging funds; ● The past financial viability of the proposed project; ● The future financial viability of the proposed project; ● The demonstrated need for the funds; and
● Personal financial strength of borrowers.

7.0 LOAN SERVICING

7.1 LOAN COLLECTION AND SERVICING
The Grantee City will contract with TBD as the loan collection agent for its CDBG economic development loans. The duties of the collection agent will include the following:
● Loan payment collection and accounting;
● Return all loan payments and payoffs to the Grantee City; ● Agent will provide monthly receipts of loan payments; ● Provide quarterly statements on each loan;
● Undertake loan collections, including asset liquidation; ● Obtain annual financial statements from each business to assess health of the business; and
● Negotiate any change in repayment terms to avoid foreclosure.

See Attachment D of these guidelines for samples of the Grantee’s City’s sample business loan servicing policies. These policies and procedures include collection of loan payments, occupancy restrictions and monitoring, changes in title or transfers of title, changes in use, being current on insurance and property tax, default and foreclosure process.

Should the present method of financial assistance be in the form of grants only, the attachment D will include all grant requirements.

The Grantee’s City’s staff will also be responsible for securing the services of a loan servicing agent. The loan servicing agent will comply with local loan servicing policies when collecting payments. All loan repayments of past CDBG economic development loans will be serviced by one agency experienced in collecting and servicing business loans. The Grantee’s City’s staff will work 12 Adopted: 10/12/2021 Revised 8/9/2022
closely with the loan servicing agent in monitoring the Grantee’s City’s existing economic development loans. The loan servicing agent will give monthly reports on the status of loan payments to be reviewed by the Grantee’s City’s Program over site staff and fiscal staff as well. If the loan servicing agent needs to visit a borrower to talk about late payments or discuss how the business is doing, then the Grantee’s City’s staff shall be invited to attend the meeting as well.

At each LMAC meeting the Grantee’s City’s staff or Operator will brief members on any problems or concerns regarding repayments of existing loans. This includes decisions to foreclose and declare defaults. In addition, the City Council will make the final decisions regarding loan collection in conjunction with legal counsel and Grantee City staff.

Operator will complete required Department CDBG financial reports for program income. Operator will complete the proper quarterly and annual program income reports for review and approval by the Grantee City to the Department CDBG program representative. Grantee City staff will consult and monitor the loan servicing agent in the same way the Operator is monitored.

8.0 GRANTS FOR MICROENTERPRISE BUSINESS EXPANSION

8.1 SMALL GRANTS FOR LIMITED EXPANSION ACTIVITIES
The Grantee City may make small grants of up to $5,000 $10,000 to eligible existing microenterprise businesses. The microenterprise business must be participating in the Grantee’s City’s or other agency technical assistance program and grant funds may be provided upon completion of technical assistance activities.

The grants compliment the training provided by the technical assistance activities provided by the Grantee City or other agency. The technical assistance activities focus primarily on development of business/marketing plans and financial management capacity building. Examples of good uses of grant funds to strengthen capacity of microenterprise businesses are: 1) payment for marketing costs such as business cards, logo /branding design and development, flyers and publications/advertisements, web site enhancement or development; 2) payment for computers and/or software to implement improved financial and accounting systems or software systems to help manage inventory or billings/invoices.

Grants can also be the sole method of financial assistance due to the present economic climate in Guadalupe—for example, after a serious downturn in the economy or in or after declared disaster.

8.2 UNDERWRITING AND ADMINISTRATION OF GRANTS
The Grantee City will only make grants available to eligible existing microenterprise businesses that have successfully completed the technical assistance courses needed for expansion of their business. The owners must 13 Adopted: 10/12/2021 Revised 8/9/2022
have credit scores of 620 or above, unless there is a reasonable explanation of negative credit history that shows poor credit occurred for reasons beyond the owner’s control (divorce, identity thief, health issues or tragic accident, etc.). The Grantee City will also require documentation that the grant funded activities will have a positive impact on the future profitability and sustainability of the business. This will be done through analysis of future financial projections/proformas for the business that include the impact of the grant funded activities. Lastly, the Grantee City must receive third party cost estimates of the grant eligible costs being requested.

Grant funds will be disbursed to the business as a reimbursement of costs or can be directly to third party vendors. Microenterprise grantees will be required to sign a grant agreement stipulating eligible costs, payment process and reporting procedures, and other requirements as determined by the MAC. 14 Adopted: 10/12/2021 Revised 8/9/2022

ATTACHMENT A
GRANTEE’S CITY’S EXECUTED RESOLUTION ADOPTING GUIDELINES 15 Adopted: 10/12/2021 Revised 8/9/2022

ATTACHMENT B

MICROENTERPRISE FINANCIAL ASSISTANCE APPLICATION FORM
16 Adopted: 10/12/2021 Revised 8/9/2022

ATTACHMENT C

SAMPLE LOAN AND GRANT AGREEMENT FORMS
17 Adopted: 10/12/2021 Revised 8/9/2022

ATTACHMENT D
GRANTEE’S CITY’S SAMPLE BUSINESS LOAN SERVICING POLICIES

FINANCIAL ASSISTANCE TERM SHEET
City of Guadalupe
Microenterprise Financial Assistance Program
Business Application
EDC #:

Last Name First Name MI Date of Birth (DOB)
Home Address City State Zip
Home Phone Cell Phone Email
Are you currently in business or starting one?
In Business Start-Up
Business Name Business Phone Business Fax
Business Address City State Zip In Business Since?
Website Address: Is this business inside Guadalupe?
Yes No
Business Partner Information
Is this business a partnership?
First Name: Last Name:

Home Address:

Yes No City: State: Zip:

Home Phone: Cell Phone:

Is there a signed Partnership
Agreement
Day/Work Phone:

Yes No Fax Number:

Type of Partnership? Email:

Legal
Informal Website:

Limited Liability (LLC)
Business Features
Prestart Up Yes No Do you have any of the following?
Is this a Home-Based Business? Yes No (please check all that apply) Is this a Woman-Owned Business? Yes No
Is this a Veteran-Owned Business? Yes No Business Licence (current/valid) Is this a Web-Based Business? Yes No Sellers Permit/Resale Number Is this a Minority-Owned Business? Yes No Registered DBA/Fictitious Business Name Registered D&B DUNS #
Are you engaged in import/export trade? Yes No Patent Trademark Is this business full-time or part-time? Yes No Copyright Complete Business Plan Current Financials
Complete Marketing Plan
ATTACHMENT 3
Business Features
Business Form: Business Type: (industry classification) Sole Proprietor Agriculture, Forestry, Fishing, and Hunting Management of Companies Partnership Arts, Entertainment, and Recreation Manufacturing/Production Corporation Construction Transportation
S-Corporation Eductional Services Utilities
Limited Liability
Company (LLC)
Finance and Insurance Mining
Health Care and Social Assistance Professional Services Non-Profit Information Public Administraiton
Undetermined Surplus Dealer Waste and Remediation
Wholesale Trade Food Service
Real Estate and Leasing Retail Trade
Research and Development Other (specify) _________________________ Business Income
Last Year's Gross Sales: $ Does your business provide: Supplementary Income Sole Source Net Profit/Loss: $ What is your income goal? Supplementary Income Sole Source In the last year, did your business provide for an owner's draw? Yes No Annual owner's draw amount: $_________________ Employee Information
Do you have employees? Yes No
If yes, total number of employees currently:
(Headcount)
Do you believe your microenterprise will lead to job creation? Yes No Maybe
Explain your business idea:

Have you saved money for your business venture? No Yes If yes, how much? What are your financing needs? Please attach your budget and explain the necessary items listed.

Choose which is applicable and then use the space below to elaborate:

Starting a business 1) What research have you performed? 2) What have you accomplished towards your goal? Currently In Business 1) give a brief history of your business.

Total # of hours you work for your own business per month:
(if applicable)
The following documentation must be submitted with this complete/signed application Income pay stubs for the last 3 months
2020 Business and/or personal tax returns
2021 Business and/or Personal Tax Return, if available
Business Plan (1 year)
12-month projection of business cost/income
Budget expenditure for grant money
City of Guadalupe Business License
State Identification Card or Driver's License
Completed IRS Form W-9
Evidence of bank account in the Grantee's name
Most recent payroll records (or EDD DE-9 and 9C)
Additional documentation requested by the Microenterprise Advisory Committee

1. The information collected in this application is used for evaluation pruposes and is required by funders/sponsors.

2. I understand that the information I have provided about my income is subject to verification by authorized representatives of the City of Guadalupe, the State of California Department of Housing and Community Development (HCD), and the United States Department of Housing and Urban Development (HUD).

3. According to Title 18, Section 1001 of the U.S. Code, it is a felony for any person to knowingly and willingly make false or fraudulent statements to any department of the United States Government. I, the undersigned, hereby certify that all statements contained herein, are true and correct to the best of my knowledge and belief. I understand the information I provide in this certification is subject to verification, and I agree to provide necessary documentation if requested to do so.

Signature: Date:

Comments:

Page 1 of 5 ends

City of Guadalupe Microenterprise Financial Assistance
Program
Grant Agreement
This Grantee Agreement (“Agreement”) sets forth the terms and conditions of a grant (the “Grant Award”) by the City of Guadalupe (the “City”) in the amount of $XX,XXX (the “Grant Funds”) to:

Business Name (“Grantee”): _______________________________________ Business Owner’s Name: ___________________________________________ Type of Business: __________________________________________________ Payments Made to: ________________________________________________ The funds for this Grant Award are provided by the City pursuant to the State’s Community Development Block Grant (CDBG) Program, Microenterprise Financial Assistance activity, and in compliance with the City’s Microenterprise Financial Assistance Guidelines.

The terms and conditions in this Agreement are agreed to by both the City and Grantee subject to, and conditioned upon, the execution of this Agreement by the City and Grantee, Grantee’s delivery of satisfactory applicable documentation requested in connection with Grantee’s application for the Grant Award, and Grantee’s receipt of the Grant Funds. This Agreement will not be binding on the City or the Grantee unless and until this Agreement has been fully executed and Grant Funds have been disbursed to Grantee (partially or in whole).

Payment of Grant Funds. The City will disburse the Grant Funds to Grantee on a reimbursement process, unless as noted below, an advance is approved by the Microenterprise Advisory Committee (“MAC”). Grantee will submit paid invoices/receipts for approved grant items included in the grant budget to the Program Operator as follows:
submit to Los Amigos de Guadalupe staff at 4545 10th Street, Guadalupe, 93434. The Program Operator will pay these costs within a two-week period. Any questions or concerns regarding submitted receipt, or items purchased, will be addressed by the MAC prior to disbursement of funds.

Terms of an advance:
_____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ATTACHMENT 4

Page 2 of 5 ends

Liability. Grantee agrees to indemnify and hold the City and each of its agents, including any program operators, officers, employees, and assigns harmless from any and all liabilities, damages, business interruptions, delays, losses, claims, judgments of any kind whatsoever, including, all costs, attorneys’ fees, and expenses incidental thereto, which may be suffered by, or charged to City, its agents, officers, employees or assigns based on or arising out of (i) the business activities of Grantee or (ii) any violation by Grantee of any of the certifications, representations, terms and conditions of this Agreement.

Assignment. Grantee may not assign this Agreement, including assigning, delegating, or subcontracting any of its rights or obligations under it (including any assignment by merger or other combination by operation of law), without City’s (MAC) prior written consent, which consent will not be unreasonably withheld. Any assignment in violation of this provision is null and void. The City may assign this Agreement or any rights and obligations under it without the prior written consent of Grantee.

Additional Covenants, Representations and Warranties. As a condition to receiving this Grant Award and the underlying Grant Funds, Grantee agrees and/or certifies, as applicable, to all of the below (please initial next to each of the following):

C_1/_1. The undersigned signatory is a duly authorized representative of Grantee and has full authority to make the certifications referenced herein on Grantee’s behalf. bci_2/2. Grantee represents, warrants and agrees that (a) Grantee has the full authority to enter into this Agreement, (b) that the execution, delivery and performance of this Agreement does not violate any law, order, regulation or agreement to which Grantee is a party or subject, and (c) upon execution by or on behalf of Grantee, this Agreement will constitute a legal and binding agreement of Grantee.
bci_3/3. Grantee acknowledges and agrees that the City reserves the right to demand the return of all or any portion of the Grant Funds if the Grantor determines that any of the terms of this Agreement are violated or any of the certifications in either the Microenterprise Financial Assistance application or in this Agreement are determined to be false or not adhered to.
bci_4/4. Grantee acknowledges and agrees that it will reasonably cooperate and provide such information as is requested by City or its designee in accordance with the terms of this Agreement, which may include, without limitation, information regarding Grantee’s business activities and/or financial information, including, without limitation, for the purpose of conducting a Program compliance review of this Grant Award. bci_5/5. Grantee acknowledges that the City or its authorized designees may publicly release information regarding this Grant Award, including but not limited to, Grantee’s Business name, contact information, and Grant Award amount. Grantee hereby authorizes the City and its authorized designees to make such public statements regarding Grantee for purposes of the foregoing. Grantee acknowledges that the City is subject to the California Public Records Act and any information within its custody and/or control may be subject to disclosure.

Page 3 of 5 ends

bci_6/6. Grantee represents and warrants that Grantee meets all of the eligibility requirements for this Grant Award, including but not limited to, that Grantee meets the definition of an eligible Microenterprise business, or person wishing to start a business under the City guidelines.
bci_7 b7. Grantee has a business location within the City. bci_10/8. The Grant Funds will be used only to cover those costs identified in the attached grantee’s application and grant budget, as approved by the MAC.

9. Grantee acknowledges and agrees that Grantee is not one or more of the following types of businesses deemed ineligible to receive a grant under the Program:
(a) a nonprofit entity registered as either a 501(c)(3), 501(c)(6) or 501(c)(19); (b) a business or organization primarily engaged in political or lobbying activities;
(c) a passive business, investment company or investor who files a Schedule E on its tax returns;
(d) a business or organization engaged in any activity that is illegal under federal, state or local law;
(e) a business or organization of a prurient sexual nature, including a business or organization which presents live performances of a prurient sexual nature or a business or organization which derives directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature;
(f) a business or organization engaged in any socially undesirable activity or activity that may be considered predatory in nature such as rent-to-own businesses or check cashing businesses;
(g) a business or organization that restricts clients for any reason other than capacity, specifically any business that illegally discriminates against clients; (h) a speculative business, meaning a business for the sole purpose of purchasing and holding an item until the market price increases or other business principally engaged in risky activity for the chance of an unusually large profit, including but not limited to, (i) oil wildcatting, (ii) dealing in stocks, bonds, commodity futures, and other financial instruments and (iii) mining gold or silver in other than established fields;
(m) a business, franchise or location of which the owner(s) has already applied for and received a grant under the Program.

Page 4 of 5 ends

bci_13/10. No officer or owner of Grantee: (i) has within the prior three-years been convicted of or had a civil judgment rendered against such officer or owner, or has had commenced any form of parole or probation (including probation before judgment), for (A) commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state or local) transaction or contract under a public transaction, (B) violation of federal or state anti-trust or procurement statutes, or (C) commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; or (ii) is presently indicted for or otherwise criminally or civilly charged by a government entity, (federal, state or local) with commission of any of the offenses enumerated in subparagraph (i) above.
bci_16/11. Grantee acknowledges that Los Amigos de Guadalupe (“LADG”), as the designated program operator, will disburse the funds under the Program, has confirmed Grantee’s eligibility for the Program and the Grant Award amount based, in part, on the tax and other documents provided by Grantee, and that City has relied on such confirmation and tax and other documents in making a Grant Award to Grantee. Grantee further affirms that the tax return information provided in connection with the Program is identical to the tax return information submitted to the Internal Revenue Service, and that all other submitted documents are true and original. Grantee understands, acknowledges and agrees that LADG, as the City’s program operator will disburse funds under the Program and City and its authorized representatives, and may, without limitation, share such tax information with local, state and federal authorized representatives for the purpose of compliance with federal, state, or local laws and regulations.
bci_17/12. Grantee acknowledges that City is relying on these certifications and the certifications submitted by Grantee in its application for the Program that certified the use of funds, business eligibility, and financial information for the Grantee business or future business. Grantee makes these certifications in good faith, taking into account the Grantee’s business activity.
bci_18/13. Grantee certifies and agrees: (a) that all the representations, warranties, certifications, and acknowledgements contained in this Agreement are true and correct; and (b) to comply with all the requirements of this Agreement. In the event the City demands the return of all or any portion of the Grant Funds received by Grantee, Grantee will be responsible for all the costs and expenses incurred by City with respect to the collection of the return of such Grant Funds, including reasonable attorneys’ fees.

Modification or Waiver/Breach; Severability. No part of this Agreement will be modified without the express written consent of both the Grantee and City. A waiver of any breach or term of this Agreement must be in writing. Any waiver of a breach or term will not constitute a waiver of any other subsequent breach or term, whether similar or different. If any provision of this Agreement is found to be invalid or unenforceable by a court of competent jurisdiction, such provision will be deemed to be restated to reflect as nearly as possible the original intent of the parties in accordance with applicable law, and the remainder of the Agreement will continue in full force and effect to the fullest extent permitted by law.

Page 5 of 5 ends

Integration. This Agreement, including any referenced attachments, appendices and references, constitutes the entire Agreement and supersedes any other written or oral representations, statement negotiations, or agreements.

Governing Law. This Agreement will be governed and construed in accordance with the laws of the State of California applicable to agreements made and performed there, without regard to its conflicts of law principles. Each party irrevocably consents to the exclusive jurisdiction and venue of the federal and state courts in the State of California and the parties hereby waive the defense of an inconvenient forum in any such court.

This Agreement may be executed in person, signed by the grantee in front of the Program Operator. At the same time, or in a separate time and place, the City will sign the grant agreement. A final, fully executed agreement will be maintained by the program operator and pdf copies will be emailed to the grantee.

City of Guadalupe:
_________________________________________Date_________________ City Administrator, Todd Bodem
Grantee:

Name_______________________
Date: _______________________
Signature: ______________________________

CITY OF GUADALUPE

MICROENTERPRISE GRANT

PROGRAM
PURPOSE: To make City Grants to eligible Guadalupe Businesses or Guadalupe residents wanting to start a business in Guadalupe.

USE OF FUNDS: Working Capital/Start-up Costs, Equipment, Emergency Assistance, Marketing costs, Supplies, and Other Business-Related Expenses Approved by the Microenterprise Advisory Committee (MAC)

FINANCING
METHOD: Funds will be provided by the City of Guadalupe, CDBG Microenterprise Financial Assistance Program. Payments will be made on a reimbursement process, unless approved by the LAC prior to execution of the grant agreement.

QUALIFICATIONS:
● Income Qualified (80% of Area Median Income, Santa Barbara County, adjusted for Household Size)
● 5 Employees max (includes working owner(s))
● Must have enrolled in the Economic Development Collaborative for services and meet with an Advisor(s)
● Complete the City’s Microenterprise Technical Assistance Class (Certificate)
CREDIT SCORE: N/A

ADDITIONAL

REQUIREMENTS
● Grant proceeds must be used for small businesses located in the City of Guadalupe. This requirement can be met by the business license having an address in Guadalupe; and can be a home-based business or a storefront located in Guadalupe.
● Grant limited to one time, except under emergency. Should the City change this program from grants to loans, the grant awardees may apply for a loan.
● Based on the submitted business plan and one-year financial projections, the MAC will determine if there is a likelihood of the business’ success.

CASH FLOW
COVERAGE:

N/A
ATTACHMENT 5
BUSINESS HISTORY: N/A
DOCUMENTS: ● Income pay stubs for the last 3 months
● 2020 Business and/or Personal Tax Returns
● 2021 Business and/or Personal Tax Returns, if available ● Business Plan (one-year)
● 12-month Projection of business cost/income
● Budget expenditure for grant money
● City Business License
● State Identification Card or Driver’s License
● Completed IRS Form W-9
● Evidence of bank account in the Grantee's name
● Most recent payroll records (or EDD DE-9 and 9C)
● additional documentation requested by the MAC
OWNER

INVESTMENTS
N/A
MAXIMUM AMOUNT: Up To $10,000
MATURITY: N/A
PAYMENT: N/A
INTEREST RATE: N/A
COLLATERAL: N/A
FEES: None
OTHER: Businesses are expected to meet with a SBDC Advisor before and after funding (if approved) on a continuous basis (to be determined by the Advisor).

CONTACT: Los Amigos de Guadalupe @ [email protected] or (805) 356-6155

PLANNING DEPARTMENT
City of Guadalupe
918 Obispo Street
P.O. Box 908
Guadalupe, CA 93434
Tel (805) 356-3903
To: Mr. Mayor and City Councilmembers
From: Larry Appel, Contract Planning Director
Date: August 1, 2022 Planning Report Covering July 2022

MINISTERIAL PROJECTS
Zoning Clearances Approved 2
Zoning Clearances Denied 0
Zoning Verification Letters 0
Business Licenses Approved 2
Business Licenses Denied 0
ADUs approved 4

DISCRETIONARY PROJECTS
The following projects are in for Planning Department review and have been worked on during July:
 General Plan Update – .Mitigated ND to be circulated for public review in August, waiting for Spanish translation before public release
 2020-003-GPZ/2020-101-LLA Almaguer - LAFCo hearing tentatively set for August 11, 2022.  2021-098-TTM/2021-099-TTM - DJ South tract maps being processed. Applications deemed Complete for processing 1-28-22 for TTM -098, working on final conditions of approval before staff report is prepared with Resolution Approved by CC on May 10, 2022. TTM -099 application deemed complete July 27, 2022
 2022-001-GPZ La Guardia Townhomes Approved at Council on 7-26-22.  2022-016-GPZ Snowy Plover map and design review remain Incomplete  2022-027-CUP/2022-030-DR - Conditional Use Permit for Patrick Kimbell to allow 24 affordable apartments in a Street. Second Incomplete Application letter sent June new 3-story building and Design Review to allow renovation of upstairs space for three apartments at 823 Guadalupe. Second Incomplete June 16, 2022.
 2022-034-CUP - Conditional Use Permit for Central Coast Processing, LLC to allow processing, bulk packaging, and transportation of cannabis at 151 Obispo Street. Application under review. .

Incomplete Application letter sent May 18, 2022.
 2022-037-CUP - Conditional Use Permit for Hwy - 1 General Auto Repair, to allow auto repair shop at 333 Guadalupe Street. Incomplete Application Deemed Complete July 6, 2022.  2022-015-LM - Gowing Voluntary Lot Merger to combine two substandard parcels to create a legal lot in the R-1 zone at 4679 Seventh Street. Approved by Planning and Public Works; Lot Merger recorded by County.
 2022-037-CUP - Conditional Use Permit for Hwy - 1 General Auto Repair, to legalize auto repair shop at 333 Guadalupe Street. Application Deemed Complete July 6, 2022.  2022-056-DR - Submitted July 7, 2022 - Application Under review.

Agenda Item No. 6G 1
Ministerial Permit Report– July 2022
(Reported 8-1-2022)
Zoning Clearance Approvals
2022-032-ZC TrusPro Solar 695 Guadalupe St
2022-055-ZC Bumanglag Paving 4830 Hernandez
ADU Approvals
2022-058-ZC Castillo ADU 234 Obispo Street
2022-059-ZC Alavarez ADU 4486 Eleventh Street
2022-060-ZC Alvarez ADU 968 Olivera Street
2022-061-ZC Preciado ADU 151 Surfbird Lane
Business License Approvals
Kilter Sundry Design and sales 1159 Guadalupe Street
La Guelaguetza Tortilla Factory 950B Guadalupe Street
Business License Denials
None
Guadalupe City Planning Department
Planning Processing Summary for July 2022
(8-1-22 update)
Case No. Name Submittal
Date
Comp. Date Status OK for Bldg.

Permit Issuance
2021-099-TTP $$ DJ Farms South
Tract map
Sept 2021 Complete
7-27-2022
Working to move project forward to City
Council.

NO
2020-101-LLA $$ Almaguer

LLA/GPZ
Oct 2020 Complete LAFCo approval set for August 11th NO N/A
$$ thru SB2 grant
General Plan
Update
2019 City
Council
authorization
N/A Mitigated ND to be released for public
review in August after document is
translated into Spanish
N/A
2022-001-GPZ
2022-002-DR
2022-003-LM
La Guardia
Townhomes
1/28/22 Complete
6-20-22
Approved at July 26th Council meeting. NO
2022-016-GPZ
2022-017-DR
2022-018-VTTM
Snowy Plover 3-10-22 Incomplete
4-09-22
Project remains Incomplete for
processing.

NO
2022-037-CUP General Auto
Repair
March 2022 Compete
7-6-22
Staff working on revised site plan prior to
City Council hearing.

NO
2022-027-CUP
2022-030-DR
Kimbell
Apartments
2nd INC June
16, 2022
24 new apartments with three apartments
in converted second floor
NO
2022-034-CUP Central Coast
Processing
INC May 18 30-day review of new application NO
2022-056-DR Design Review July 7, 2022 30-day
review
Initial review of application NO
No$ = unreimbursed planning work
$ = projects where a fixed fee has been paid
$$ = projects where a variable fee / deposit is made and the applicant is billed for time beyond the initial deposit // 8-1-22
MONTH; July 2022
This Month
Visitors 42
Inspections 252
Building
Permits 17
Issued
Certificate
of 6
Occupancy

CITY OF GUADALUPE

BUILDING DEPARTMENT

STATUS REPORT
Last Month Year to Date
37 215
294 2,846
20 176
10 78
Last Year
77 1,536
128
33 VISITORS; Permits, Planning application submittals, submitted plan updates, general information
Agenda Item No. 6G 2

1 Public Works/Engineering Report
July 2022
Development
Pasadera
City staff sent Pasadera a punch list of final elements necessary for the City to take over maintenance and operation of public facilities in Lot 5N. At this time, the goal is for the City to assume operation and maintenance of streetlights, streets, sidewalk, water, sewer and parks in Lot 5N by September 1. Most punch list items are complete. Street slurrying is scheduled for August 9.

On July 29, the City received agreements for signature from Union Pacific Railroad for the two bridges to be constructed in Pasadera.

Other
On July 13, spoke to applicant on the City’s inability to propose alternative sites for a cell company’s generator as this is not a role that the City staff may perform.

On July 6, reviewed permit number 2022-054–zc and provided comments on applicant’s need to meet the stormwater post construction requirements. Also reviewed 2021 – 128 – cc and provided comments on applicant’s desire to add a generator at the elevated tank for cell service. City staff denied the request because the generator concrete pad would interfere with the operation and maintenance of the elevated tank and associated equipment.

On July 13, developed conditions of approval for the La Guardia townhomes project.

On July 19, reviewed one encroachment permit application and one special events permit application.

On July 22, reviewed one encroachment permit application.

Agenda Item No. 6G 3
2 Facilities
City Hall
On July 12, City staff signed an agreement with Kinyon Construction for painting of the City Hall auditorium. Staff met with the contractor on July 21 and July 24 to coordinate this work and verify colors. This work is scheduled for August 3 through August 20.

Public Works submitted paperwork to PG&E on the electrical schedule and revised site plan regarding the new electric service to the Police Department wing on June 17. On June 20, the City received notice that our application had been successfully submitted.

On June 30, City approved the expenditure of $3,031.77 for PG&E to design their portion of the installation of this service. Some of the hardware necessary to complete the City’s portion of the installation was done by a contractor on July 9.

General
Special projects
Public Works staff worked on several special projects requested by others along with normal tasks of emptying streets trash cans twice a week, daily street inspection, bulky trash pickup, and weekly cleaning of the pedestrian bridge in the month of July including:

• July 1: General cleanup and trash receptacle emptying in preparation for the long weekend. Remove branch from in front of 867 Guadalupe St. Make spare key for City Hall restroom for Guadalupe local transit bus driver. • July 5: Install bus shelter at Flower and Elm. Install bus signs and schedules at Flower and Elm, Guadalupe and Olivera, and West Main and Montez Court. • July 6: Begin annual street line painting program.
• July 7: Dismantle bus shelter at Peralta and 11th in preparation for installation of new bus shelter. Install bus signs at existing Bonita Park and new Pasadera bus stop. Install cold patch on sidewalk on Campodonico to address resident concern about tripping hazard.
• July 11: Coordinate with adjacent landowner to safely escort cows from Paco Park back to County property. Maintain cows in park to ensure safety of surrounding neighborhoods until landowner arrived.
• July 12: Remove bus sign from old Amber and Obispo bus stop and erect bus stop sign at new Obispo and Amber bus stop.
• July 13: Repair mower. Mow various public areas. Coordinate with W. Main St. waterline Project inspector for oncoming street closure schedule. • July 14: Coordinate with the Housing Authority to make sure Escalante Meadows street signs match existing City street signs. Assist Recreation and 3 Facilities with Senior Center refrigerator condensation problem. Attend City Hall Building Committee meeting.
• July 15: Install lights at bus shelters. Paint alley fencing in point Sal dunes to cover substantial graffiti.
• July 18: Assist Recreation with O’Connell Park sewer line and with painting of graffiti from jail. Update street no parking signs for West Main Street Waterline Project.
• July 19: Continue annual street painting program.
• July 21: Assist Recreation and Facilities division by emptying all parks and facilities trash cans, stocking restrooms, and opening and closing City Hall.

Follow-up with residents on multiple encroachment permits. • July 22: Assist Recreation and Facilities division by mowing City Hall and setting up City Hall facilities for resource fair.
• July 25: Attend City Hall Auditorium painting project preconstruction meeting.

Remove no parking signs and barricades associated with W. Main St. waterline Project.
• July 26: Fill pothole at the intersection of Fifth Street and Tognazzini. Continue annual street painting program.
• July 27: Continue annual street painting program.
• July 28: Trash collection, weed abatement and general cleanup throughout City. • July 29: Weed abatement and general cleanup at Amtrak station and Veterans Memorial Plaza parking lot.

The Public Works Director participated in the following meetings in July:
• July 1: Meeting with Waste Management account manager to discuss existing contract, available services, and opportunities for improved communication. • July 5: Regional broadband strategy webinar.
• July 6: Meeting with property owner to discuss access of pain across City property.
• July 7: Meeting with ITECH to discuss phone/Internet tie-over at City Hall.

WaterSMART grant meeting for opportunity to participate in a regional turf replacement rebate program.
• July 8: Meeting to discuss goals and responsibilities for Central Park project. • July 12: Meeting with Central Park design consultant to discuss the revised scope proposal.
• July 13: Meeting with Charter to discuss available services for improved broadband and how to improve communication.
• July 14: Central Coast Water Authority operating committee meeting. Building committee meeting to discuss the structural assessment of City Hall and next steps. WaterSMART grant meeting to gather information needed for grant application to participate in a regional turf replacement rebate program. 4 • July 19: City Hall Auditorium painting preconstruction meeting. • July 20: meeting with a consultant that did not win the award for Central Park design project to discuss proposal.
• July25: meeting with City Hall Auditorium painting contractor to discuss colors. • July 26: Integrated Regional Water Management Program cooperating partners meeting to vote on projects to include in a Proposition 1 Round 2 grant application. City of Guadalupe Pioneer Lift Station replacement project was included as one of the recommended projects for a $990,000 grant. This application will be sent to Department of Water Resources on August 18. • July 27: Santa Barbara County stormwater agency managers meeting.

Wastewater treatment plant CC-LEAP working group webinar to discuss energy efficiency opportunities at wastewater operations.
• July 28: Central Coast Water Authority board meeting. Solid waste local task force meeting. Regional resilience grant program listening session.

Solid Waste
On July 1, Councilman Ramirez, Public Works Director Sweeney, and Waste Management account manager Liz Gomez met to discuss the City’s existing contract, concerns about current service, and ways in which communication can be improved between City residents and Waste Management.

SB 1826
On July 20 waiver applications were reviewed, and an updated list of customers subject to these regulations were sent to Waste Management. For those commercial accounts that did not submit waiver request applications, new mandatory commercial organics recycling service will begin August 1.

Streets
Street Rehabilitation
On July 6, the City approved a contract amendment to accommodate additional work associated with this here’s Street rehabilitation project. The scope of this project has been expanded to include rehabilitation of 5th Street between Tognazzini and Campodonico, striping of Obispo Street and W. Main St., and digouts on the road leading to the wastewater treatment plant.

Transit
EV bus
During July, staff worked with our contract transit operator and the electric bus manufacturer to spec out the new electric bus. The goal is to get a purchase order issued in the beginning of August.
5 On July 29, City staff was notified that we were awarded an additional $828,750 for the purchase of a second electric bus through the Federal FTA 5339 program.

Service Changes
On July 28, a new sign was installed at the bus bay in the Santa Maria Transit Center to help transit riders identify the bus bay associated with the Guadalupe Flyer express route.

On July 29, City staff worked with Trillium, our GTFS consultant to update our internet data to properly reflect the location of the new Pasadera bus stop.

Bus Shelters
In July upgrades were made to numerous bus stops, including shelters, signs, and lighting. Trash receptacles for the bus stops were delivered to the City’s corporation yard on June 30 and distributed July 11.

Water
West Main Street Water Line Project
This project involves replacing approximately one-thousand feet of 4-inch pipe with 12- inch pipe on West Main Street from Guadalupe Street to Pioneer Street and will improve fire flows to the middle school. Project construction began June 13. Most of the work has been completed the final items, including raising valve lids and street striping are scheduled for the first week in August, along with the final project walk-through.

Operations
Operations staff is seeking quotes for a spare motor for Pasadera Well, an item budgeted in the FY 22-23 budget. The City has a spare motor for Obispo Well, but the motor size for Pasadera Well is different. The delivery time for a new well motor is approximately 15 weeks. For that reason, it is best to have a replacement motor available. Motor failure is the most common reason for loss of well productivity.

Wastewater
Regulatory
No overflows occurred in July 2022.

The wastewater treatment plant experienced no violations the month of July.

Effluent Pump Station Rehabilitation
This project involves the rehabilitation of the effluent pump station at the wastewater treatment plant. It is partially funded through an Integrated Regional Water Management Program (IRWMP) grant. PG&E finally indicated approval of the switchgear on July 5.

The Contractor sent the fabrication drawings for the switchgear to the manufacturer, who 6 indicated delivery of switchgear by November. The City issued an amendment extending the construction contract to December 31, 2022.

Highway 1 Lift Station Rehabilitation
The City received comments back from CalTrans on this project on July 17. The design engineer redmarked the drawings to answer CalTrans questions and returned the drawings to the City on July 19. After discussing these responses with City staff on July 27, the design engineer made final plan changes and City staff submitted a letter of response and revised drawings to Caltrans on July 29.

Pioneer Lift Station Rehabilitation
On July 29, City staff submitted paperwork to Santa Barbara County on this project, including updated budget, disadvantaged community justification, and quantifiable benefit identification so that the County’s consultant but of all information required to submit the application for this grant by the due date of August 18. Will the City received information from the Integrated Regional Water Management Program (IRWMP) that the Proposition 1 Round 2 Santa Barbara County IRWM project screening subcommittee is recommending project funding for the Pioneer Lift Station Rehabilitation project in the amount of $990,000.00.

Wastewater treatment plant operations
On July 20, staff repaired the skimming system on the north side clarifier. On July 21, staff coordinated the installation of an effluent pump and reinstated the effluent pump station. On July 27, removal of grit from the Biolac system. 7 Project
# Account # 2022-23 TOTAL
2022-23 Spent/
Encumbered July 2022 Update
100 Buildings
089-104 89-4444-3044 155,127 $ 089-105 89-4444-3045 40,840 $ 089-106 89-4444-3077 90,000 $ 089-107 89-4444-3076 70,000 $ 089-108 89-4444-3075 170,000 $ 26,527 $ PG&E design underway 089-109 New Royal Theatre 5,459,320 $
089-110 New Library Relocation 30,000 $
089-111 New City Hall Restroom Redesign 154,000 $ 089-112 New 400,000 $ 70,495 $ Building assessment complete. 200 Parks
089-201 New 4,882,054 $ 611,887 $ Design awarded
089-204 New CDBG (Leroy Phase 2) 1,700,000 $
300 Streets, Sidewalks, Bicycle Facilities
089-307 89-4444-3067 200,000 $ 089-308 89-4444-3068 1,700,000 $ 103,834 $ Design underway, Project scheduled to bid August 2022 089-309 89-4444-3097 100,000 $ 089-310 New 293,809 $
089-311 89-4444-3092 60,000 $ 400 Water
089-406 89-4444-3093 95,000 $ 089-407 89-4444-3094 200,000 $ 089-408 89-4444-3095 50,000 $ 089-409 89-4444-3096 450,000 $ 362,655 $ Scheduled for completion 8/9/22 089-410 New 40,000 $ 500 Wastewater
089-503 89-4444-3083 522,821 $ 516,180 $ Construction tentatively scheduled for December 2022 089-504 89-4444-3084 1,200,000 $ Design complete. Waiting for CalTrans encroacment permit.089-510 89-4444-3090 90,000 $ 600 Transit 089-603 New 1,700,000 $ Working with manufacturr on bus specifications089-602 New 494,000 $ Transfer to CIP fund 089: 20,346,971 $ 1,691,578 $
Completed
General Plan UpdatePublic Facilities Master Plan (w/ parks & library)American Legion wood repairBuilding improvements (PD Electrical, misc)City Hall Upgrades (roof & assoc. building repairs)CDBG (Central Park)11th st multimodal path designStreet Rehabilitation FY 22/23Sidewalk repairsLa Guardia SidewalkElevated Tank Repairs/Evaluate Antenna RevenueAdvanced Metering Infrastructure Phase 1SCADA ImprovementsWest Main WaterlineBonita Tank DemolitionEffluent Irrigation Pump Station RehabilitationHwy 1 Lift StationAIPS vaultEV Bus and chargingAmtrak Tran Station Rehab (design)

PROJECT DESCRIPTIONS
Financial Accounting Software
City of Guadalupe
Capital Improvement Projects Budget - Fiscal Year 22-23 Storm Drain Improvements
MAYOR’S REPORT
August 9, 2022
(Information below may be subject to change)

1. Allan Hancock College Board Meeting.

The City Administrator met with Councilmember Antonio Ramirez about hosting Allan Hancock College within our Council Chambers on Tuesday, October 18th at 6 p.m. Speaking as someone affiliated with both entities, staff understands Councilmember Ramirez excitement to see this come to fruition.

2. Waste Management
On July 27th, Waste Management (WM) delivered carts to all non-exempt AB1826 customers in the City of Guadalupe. To begin with, they planned to deliver 64-gallon carts. Once they get an ample supply of 32-gal green waste/organics carts they can switch them out, if customers’ requests a smaller container. Also, WM exempted all of the free services for the City. WM Customer Service has a copy of the customer notification letter the City sent to customers requesting they call to confirm green waste/organic status, or they would receive a cart and begin seeing a fee for service on their August invoice.

3. Los Amigos de Guadalupe (LADG)
The Finance Director and Public Works Director are handling LADG and grant invoices associated with the capital projects at Central Park and LeRoy Park. Lorena will take care of LADG and grant invoices associated with micro-enterprise and CV2/3.

4. Flyer Express
The Guadalupe Flyer Express signage is up at the Transit Center. Here are some of the pictures. See Attachment 1, 2, & 3 of sign images.

5. EDA Capacity Building Webinar
Tom Brandeberry from LADG thought since the City has its first EDA project in Guadalupe, it would be very useful someone from the City should attend the webinar that provides an overview on federal grant programs offered the U.S. Economic Development Administration (EDA) to support capacity building. Discussed programs are designed to support projects that range from but are not limited to the following:
• Developing of scalable startups;
• Creating and sustain manufacturing jobs;
• Investing in physical infrastructure; and
• Highlighting case studies that demonstrate success.

Agenda Item No. 9
This webinar is hosted in partnership with the Fresno State Office of Community & Economic Development (OCED), U.S. Economic Development Administration (EDA), and USDA Office of Partnerships & Public Engagement (OPPE).

See Attachment 4 for webinar sign up if you are interested.

6. Free Air Quality Sensor from County Air Pollution Control District (APCD) An Air Quality Specialist at the Santa Barbara County Air Pollution Control District contacted staff to see about the installation of their Community Air Sensors Program. The district is seeking community partners to host free air quality sensors and the have identified the Senior Center as a potential location.

The air sensor they would like to install is manufactured by PurpleAir. It is about the size of a coffee cup, mounts outdoors via one screw or zip ties, requires a standard electrical plug, and connects to your location’s Wi-Fi. The particulate matter data from each sensor is fed into the PurpleAir Website as well as the EPA's Fire and Smoke Map. This publicly accessible sensor network is useful for tracking trends of wildfire smoke and other types of harmful particulate matter. Adding another sensor in Guadalupe would expand the sensor network and serve as a resource for folks living and working here. Note, these sensors are not for regulatory or enforcement purposes. They will cost the city nothing.

Staff is looking into this possibility.

7. Royal Theater
Senator Limon would like to visit Guadalupe, touring the Royal Theatre and the Housing Authority project and meeting with the mayor. They need some tentative dates in September and two good dates in October. Once they have the four possible dates, they will finalize the date and state working on an agenda (She will be open to seeing more of Guadalupe). The event will include the press and handing over a very large check for press photo opts.

The EDA has indicated today that they want this to be two phasesfor the Royal Theater, which is the greatest scenario. Their main concern is getting the contract out (must be executed by the end of September). They did agree to explore "amending" the contract after it is executed and before the seal bid documents are finished.

On Thursday, July 4th, city staff, the mayor, LADG, design team, and an EDA (grant funder) representative toured the Royal Theater facility to gain a better perspective about the project.

8. Clean Air Rooms Pilot Program – Remaining Air Purifiers This was mentioned in a previous report, but worth noting again. Santa Barbara County Air Pollution Control District (SBCAPCD’s) Clean Air Rooms Pilot Program last September for Guadalupe and Casmalia residents was incredibly popular and provided over 650 air purifiers to eligible residence. During their September 2021 Board meeting, SPCAGCD informed the Board that they would be purchasing an additional 137 additional air purifiers to fulfill requests for a waiting list that residents added themselves to at the distribution days in September.

Once they ordered and received the 137 additional devices, letters were mailed out in English and Spanish to every address on the waiting list. In the letter, they explained that they would be holding three pick-up events at our Santa Maria office for individuals to get their device (i.e., May 18, May 25, and June 1, all 4-6pm); the letter asked them to bring the letter as well as a proof of address to pick up the device. They also encouraged people to contact them via phone and/or email if none of those three days worked with their schedule, so that they could make an alternate arrangement. Additionally, they called everyone on the waiting list with a valid phone number and functioning voicemail service and were able to either talk to them or leave them a message in English and Spanish.

Across the three pick-up days, 59 individuals came to receive their device. (They also received a tote bag filled with bilingual informational materials, just like the program participants received at the giveaway events in September.)
With the remaining 78 devices, SBCACD would like to do the following:
• Provide 1 air purifier for every classroom in the two schools in the Guadalupe Union School District (70 classrooms, according to Superintendent Handall); • Provide any remaining devices to a school in Casmalia if possible (in the previous school year, Orcutt Union School District operated an independent-study school in Casmalia but plans for the upcoming school year are not determined yet, according to the County Education Office);
• Provide any remaining devices to the City of Guadalupe, Dunes Center, and Los Amigos de Guadalupe, all of which helped them with the pilot program; • And, if one device is remaining, SBCACD will keep it for demonstration purposes at outreach events in North County.

SBCACD feel’s this plan would fulfill the spirit of the program, which was to provide free air purifiers to Guadalupe and Casmalia residents. This plan would have the added benefit of providing clean indoor air at school for every student in those communities, regardless of whether that student’s family was able to get a device as part of the first-come, first-serve giveaway events in September.

9. Agreements with the various groups, such as the Boys & Girls Club (BGC), Allan Hancock College, and SER Jobs for Progress, Veterans Hall MOU are ongoing.

The school schedule will not affect the opening of BGC programming at Le Roy Park because they have school-based programs at Mary Buren and at McKenzie.

After an approved MOU, it will take 10-12 weeks of preparation, hiring, and training to re-open programming at Le Roy Park. So, they would be targeting opening on October 1st.

The City was rushing to have council execute an agreement but now both parties have time to make the very best possible agreement, everyone is excited to meet the expectations of our youth.

On Monday, August 8th, the mayor and key staff will meet with the BGC and SERs for Progress for the continuance to these agreements in Le Roy Park.

10. REAP GRANT OPPORTUNITY
As a follow up to a meeting, below are some highlights about a few funding opportunities for promoting housing.

1. State of California released the final guidelines for REAP 2.0, making $5.3 million available to Santa Barbara County for local planning and capital projects aimed to increase housing supply countywide while reducing greenhouse gas emissions.

2. Different from REAP 1.0, which many of the cities used for Housing Element updates, funding is 100 percent general fund – that will provide some greater flexibility on the use and reporting associated with the funds.

3. SBCAG will administer REAP 2.0 – which will include a public and stakeholder outreach process, call for projects, application evaluations and nomination to fund projects to the State.

4. General timeline – SBCAG required to submit to the State funding recommendations by December 31, 2022.

5. All funds will be awarded and encumbered by June 30, 2024. Recipients must submit a report by April 1 of the year following the receipt of funds, but annually thereafter until finds are expended between April to June of every year. Expenditure and close-out reports are due June 30, 2026. Final invoices must be submitted three months prior to the expenditure deadline.

Here is a link to the guidelines, eligible uses starts on page 11. https://www.hcd.ca.gov/docs/grants-and-funding/mpo-reap-2-0-final-guidelines.pdf Staff is looking into this possibility. Hoping for more monies to help offset costs in the Planning Department and possible General Plan Updates elements.

END OF REPORT
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 3
The USDA Office of Partnerships & Public Engagement (OPPE) in partnership with the Fresno State University Office of Community & Economic Development (OCED), and U.S. Economic Development Administration (EDA)
EDA

CAPACITY

BUILDING

WEBINAR
The webinar will provide an overview on federal grant programs offered at the U.S. Economic Development Administration (EDA) to support capacity building. Discussed programs are designed to support projects that range from but are not limited to the following:
• Developing scalable startups;
• Creating and sustaining manufacturing jobs;
• Investing in physical infrastructure; and
• Highlighting case studies that demonstrate success.

This webinar is hosted in partnership with the Fresno State Office of Community & Economic Development (OCED), U.S.

Economic Development Administration (EDA), and USDA Office of Partnerships & Public Engagement (OPPE).

USDA is an equal opportunity provider, employer, and lender. www.USDA.gov

TUESDAY
AUGUST 23, 2022
10:00 - 11:00 AM PT
For questions, please contact [email protected]
ATTACHMENT 4
2021-047-PA Page 1 of 3 August 9, 2022
Agenda Item No. 10

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of August 9, 2022
________________________________ __________________________________ Prepared by: Approved by:

Larry Appel, Contract Planning Director Todd Bodem, City Administrator SUBJECT: Wine Tasting and Event Center Similar Use Determination in General Commercial (G-C) Zone District
EXECUTIVE SUMMARY:

This zoning determination is being requested by Brooks Van Wingerden, owner of property at 945 and 949 Guadalupe Street. She and her husband are wanting to bring new businesses to the downtown area by developing two different uses adjacent to each other. The first, a wine tasting facility, would highlight local wines from Santa Barbara and San Luis Obispo Counties. The second business would be a special event facility that would allow private parties to hold events in the building and outside in the rear yard of the building. Some examples would be bridal showers, supper clubs, baby showers and corporate meetings. In the outdoor area behind the building, they would propose wedding venues for up to 150 people. Staff believes that the zoning ordinance should be flexible and allow these uses within the City.

We are recommending that the City Council find the uses appropriate within the General Commercial (G-C) zone district.

RECOMMENDATION:

It is recommended that the City Council adopt Resolution No. 2022-74 and find that Wine Tasting and Event Center facilities in the General Commercial (G-C) district are similar in use and consistent with the purpose of the zoning district, provided that any event center facility with outdoor events is approved with a conditional use permit (CUP).

DISCUSSION:

For the past two years, the City has been working to update the General Plan with emphasis on improving the commercial/retail downtown. Additionally, the Guadalupe Business Association has worked with local business owners and future businesses to expand uses in the downtown so as to attract more residents and visitors to the downtown area. The two uses that are being proposed by the Van Wingerdens are exactly the type of business that will help transition the downtown into a more vibrant place.

When reviewing the permitted uses and conditional uses of the General Commercial (G-C)zoning district in Chapter 18-36 of the Guadalupe Municipal Code, we have to remember that the determination of use 2021-047-PA Page 2 of 3 August 9, 2022
is not just for this owner in this location. The determination would allow anyone to conduct these uses anywhere in the G-C zone district.

Wine Tasting: Existing uses in the G-C zone that are similar to wine tasting and which are allowed by right include restaurants, grocery stores, and entertainment. The ABC is now permitting wine tasting in certain cordoned-off areas within grocery stores, and the other permitted uses would certainly seem to allow wine tasting if not on-sale of wine by the glass or bottle. Therefore, staff believes that while the specific use of wine tasting is not shown in Section 18.36.020, it would be considered a similar use.

If Council determines that the wine tasting use is appropriate, then staff is prepared to sign off on an Alcohol and Beverage Control (ABC) application that will allow the owners to move forward with the liquor license that allows the tasting room and on- and off-premise sale of wine. The final requirement from the City would be to receive a zoning clearance. The Building Department and Fire Department might require inspections prior to opening to the public.

Event Facilities: The uses requested for the event facility are a bit more complicated. There are several G-C permitted uses that appear similar to the proposed event facility including churches, meeting halls, theaters, and auditoriums. These uses have been in the ordinance since 1980 and will be reviewed by staff to consider changing some of these permitted uses to conditionally permitted uses when the G-C zone is rewritten in the future. Staff’s concern is that without a conditional use permit, there would be no way to apply appropriate conditions to ensure that these types of uses did not impact the surrounding businesses. Recall that the updated General Plan provides for housing on the second floor of all the downtown buildings as a way to help make up the needed RHNA housing units. For this proposed event facility, the owner has stated that they would like to have up to 150 people for outdoor events. That could have an impact on the surrounding neighborhood (noise, lighting, parking, etc.). The CUP process allows staff the opportunity to address the potential impacts and offer conditions of approval so as to minimize the conflicts. You may recall when we processed the Guadalupe Cultural Center a few years ago, there were issues identified when large events were to take place on the property. Those were addressed through the requirement for conditions like parking agreements and limitations on timing and frequency of events. If the proposed event facility use is ultimately determined by the Council to not require a CUP, then no conditions could be applied.

If Council is not concerned that the event facility would be any different than those uses already listed in the G-C zone, then the majority of the Council could vote to include this use in the Permitted Uses section (Section 18.36.020). If the Council shares staff’s concerns about this use, it would be appropriate for the Council to determine that the event facility use is not similar to the permitted uses in that it is proposing outdoor events in addition to indoor events. The currently permitted uses that are “similar” to the proposed event facility use all presuppose indoor use. The fact that the proposed event center intends to have large outdoor events justifies distinguishing it from the “similar” uses that are permitted in the G-C zone and justifies treating it as a conditionally permitted use.

Another option to consider would be to allow the event center for indoor uses only (as a permitted use like the other similar permitted uses such as churches, meeting halls, theaters, and auditoriums), with the maximum occupancy determined by the Building Code, but to require a CUP for outdoor events.

Based on the owner’s desire to have up to 150 guests for an outdoor event, staff would recommend that a CUP be required for this particular proposed event facility. 2021-047-PA Page 3 of 3 August 9, 2022
The bottom line is that the Van Wingerdens have chosen to open their businesses in downtown Guadalupe which will provide a well needed infusion of life into the area. They have heard from others in the wine industry that if this business succeeds that others may want to consider downtown businesses as well. Both business uses could be a benefit to the community. It is just a matter of how they would be processed under the guidelines of the Guadalupe Municipal Code that is at question here.

ATTACHMENTS:

1. Resolution 2022-74
RESOLUTION NO. 2022-74

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUADALUPE, CALIFORNIA,

DETERMINING THAT WINE TASTING AND EVENT CENTER FACILITIES IN THE GENERAL

COMMERCIAL (G-C) ZONE DISTRICT ARE SIMILAR IN USE AND CONSISTENT WITH THE

PURPOSE OF THE ZONING DISTRICT, PROVIDED THAT ANY EVENT CENTER FACILITY

INCLUDING OUTDOOR EVENTS IS APPROVED WITH A CONDITIONAL USE PERMIT WHEREAS, Brooks Van Wingerden, owner of property at 945 and 949 Guadalupe Street along with her husband are wanting to bring new businesses to the downtown area by developing two different uses adjacent to each other; and
WHEREAS, the first, a wine tasting facility, would highlight local wines from Santa Barbara and San Luis Obispo Counties. The second business would be a special event facility that would allow private parties to hold events in the building and expand outside in the rear yard of the building for large groups up to 150 guests; and
WHEREAS, the proposed uses would be a benefit to the City’s downtown and could be the catalyst for bringing in other new businesses that could help improve the vitality of the downtown; and
WHEREAS, with respect to the proposed wine tasting use, similar existing uses in the G-C zone that are allowed by right include restaurants, grocery stores, and entertainment, and further, staff believes that while the specific use of wine tasting is not listed in Section 18.36.020 as a permitted use, it would be considered a similar use; and WHEREAS, with respect to the proposed event facility use, there are a several that are permitted uses in the G-C zone that appear similar, including churches, meeting halls, theaters and auditoriums, however, all of these existing permitted uses presuppose that all events associated with these uses will occur indoors, which distinguishes them from the propose event facility use which proposes holding large outdoor events; and
WHEREAS, the City Council has the authority to decide if the proposed event facility use should be allowed by right because it is a similar use to permitted uses in the G-C zone, or if a conditional use permit should be required because some events would be held outside the building.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Guadalupe does hereby find and determine as follows:

SECTION 1: Wine tasting is similar to other permitted uses in the General Commercial zone district, and therefore, shall be allowed as a permitted use in the General Commercial zone district.

ATTACHMENT 1
SECTION 2: An event facility is similar to other permitted uses in the General Commercial zone district if the events are held indoors, but if events are proposed to be held outdoors, it is not similar to other permitted uses in the General Commercial zone district, and therefore, any event facility that proposes outdoor events may only be allowed if a conditional use permit is approved.

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.

PASSED, APPROVED AND ADOPTED at a regular meeting on the 9th day of August 2022 by the following vote:

MOTION:

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. 2022-74, has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held August 9, 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
Housing Element Options Page 1 of 3 August 9, 2022
Agenda Item No. 11

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of August 9, 2022
________________________________ __________________________________ Prepared by: Approved by:

Larry Appel, Contract Planning Director Todd Bodem, City Administrator SUBJECT: Housing Element Update (6th Cycle) Options
EXECUTIVE SUMMARY:

In 2019, City Council adopted the 2019-2027 Guadalupe Housing Element. This effort was directed by a former city administrator and prepared by Cal Poly students with no assistance from the Planning Director. The document was adopted a day prior to the deadline for submittal of a major grant for LeRoy Park. Had the document not been adopted, the grant application would have been rejected. Recently staff learned that a 6th Cycle Housing Element must be prepared. The following document will address issues such as timing and funding.

RECOMMENDATIONS:
1) Identify $248,000 in the General Fund to cover the cost of preparing a 6th Cycle Housing Element and direct staff to prepare a contract utilizing EMC Planning Group to accept their proposal and sign a contract for services; or
2) Continue this item to a date certain for further discussions regarding the funding of the Housing Element update; or
3) Continue this item to a future date in order to allow staff time to obtain a proposal from Cal Poly; or
4) Drop the item and don’t update the Housing Element until funding is available.

DISCUSSION:

Knowing that the Housing Element was adopted and in effect through 2027, your Planning Director was happy to know that he wouldn’t be responsible for updating anymore housing documents during his tenure with the Guadalupe Planning Department. However, about two months ago, it was learned from the Santa Barbara County Association of Governments (and confirmed by the state Housing and Community Development Department (HCD)) that our Housing Element was a 5th Cycle document which should have been adopted back in 2015. HCD has assigned different due dates to each county in the state so as not to have all Housing Elements submitted at the same time which would overwhelm their staff. The 6th Cycle deadline for all agencies within Santa Barbara County is February 2023, with a four month grace period to June 2023. Based on this new information, the City Administrator and Planning Director talked about a few different scenarios of what we could do to get the Housing Element updated quickly.

Housing Element Options Page 2 of 3 August 9, 2022
At about the same time we learned about the need to prepare another Housing Element, we found out that a Community Development Block Grant (CDBG) Planning Grant was available for up to $250,000.

The application was initially due in June 2022 but was extended to August. We learned that it would probably take six months or more to have the applications reviewed and then another few months before awards were to be made and funds distributed. Since we had a very tight timeline to prepare the Housing Element, we asked the CDBG staff in Sacramento if we could go forward with Proposals for the 6th Cycle Housing Element and if we were successful in obtaining the grant that we could reimburse ourselves for the costs to date. Unfortunately, the state said no. So at that point, we didn’t have an identified source of funding.

We next decided to send out a Request for Proposal (RFP) to several planning firms to see what the cost would be to prepare the 6th Cycle Housing Element. With this information, we would be able to approach your Council and describe the issues surrounding preparation of the update. At the conclusion of the RFP process we had only received one proposal from EMC Consultants, the same firm that is preparing our General Plan Update as well as our CEQA document. The total cost for the planning effort was approximately $248,000. We received the Proposal at about the same time that it was learned that the City was dealing with a $1 million shortfall in the draft 2022-2023 budget. This wasn’t the best timing for needing to go to Council with a request to fund this planning effort. Up to now, the City had been fortunate in receiving the SB-2, LEAP and REAP grants where we had been able to fund the General Plan Update, partially fund the CEQA document, and obtain reimbursement for certain planning work by the Planning Director.

When the City last updated the Housing Element (5th Cycle), its adoption was four years after the due date. Fortunately, between 2015 and 2019 the City hadn’t been seeking grants at the time that would have required the Housing Element to be current. However, during 2019 and after, there have been a number of very large grants that the City has been able to secure in part due to the Housing Element being current. Once the deadline passes for having the Housing Element updated, the City will need to pass on any grant opportunities until we satisfy the grant submittal requirements.

EMC has told us that HCD had included a significant number of new tasks that must be included in the next update. Due to the complexities of preparing the update, the time remaining to prepare the document, circulate for public review, and submit to HCD, we would not be able to finish within the remaining time for Santa Barbara County jurisdictions. The best we can do at this point is to find the funding and begin working on the project as soon as possible. We might be up to six months late, but that will be much better than four years late as with the last update. This would also minimize the time that we wouldn’t be permitted to apply for grants.

At this point we know several things: 1) the Housing Element Update is due in six months, and we have not identified a funding source nor have we begun working on the project; 2) we know for sure that we cannot rely on the CDBG planning grant to fund the project; 3) the one proposal submitted on the project shows that the effort will cost the city approximately $248,000; 4) the City is dealing with a budget shortfall; and 5) even if we had the funding available now and we authorized EMC Planning Group to move forward on the update, there still would not be sufficient time to complete the document and have it certified by HCD in the time allotted for jurisdictions in Santa Barbara County. That could jeopardize any future grant requests until the document is certified by HCD, as described below.

Housing Element Options Page 3 of 3 August 9, 2022
Now to further complicate this information, I spoke with specialists in the Housing Division of HCD to ask what the ramifications would be in NOT moving forward with a Housing Element at the current time.

Recall that we needed to have the current Housing Element adopted in order to submit the grant application for LeRoy Park. That grant provided over $5 million to help redevelop the park and would have never been possible without the grant. According to HCD staff, “There are numerous compliance incentives and noncompliant consequences to not adopting a housing element…” They go on to say:
“For incentives, various state grant and loan programs require a HCD certified housing element including:
 Permanent Local Housing Allocation (PLHA)
 Affordable Housing and Sustainable Communities (AHSC)  SB 1 Planning Grants
 CDBG
 Infill Infrastructure Grants (IIG)
 Pro-housing Designation Program
 Local Housing Trust Fund Program (LHTF)”
If the City is unable to find the funds to cover this planning effort, then there would be penalties for noncompliance. The HCD staff had the following to say about this:
“Penalties and consequences of housing element noncompliance:
 General plan inadequacy: When a jurisdiction’s housing element is found to be out of compliance, its General Plan could be found inadequate, and therefore invalid.  Legal suits and attorney fees: Local governments with noncompliant housing elements are vulnerable to litigation from housing rights’ organizations, developers, and HCD.  Loss of permitting authority
 Financial penalties
 Court receivership
My recommendation would be to do everything possible to identify general funds that could be utilized for preparation of the Housing Element update. If it is not possible to identify the full amount of funds to be able to hire EMC to prepare the document, then one other option could be to contact Cal Poly and see if they may be able to assist in updating the housing element. This would not be staff’s recommendation due to the complexity of the 6th round Housing Element document, but it might be the only recourse we have to move forward.

The Planning Director will try to be available via Zoom on August 9th to participate in the discussion at the Council meeting. If not, the City Administrator will be able to present this item.

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Agenda Item No. 12

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of August 9, 2022
_______________________________ _________________________________ Prepared by: Approved by:

Philip F. Sinco, City Attorney Todd Bodem, City Administrator SUBJECT: Establishment of Fees for Short-Term Rentals
RECOMMENDATION:

That the City Council adopt Resolution No. 2022-75 establishing fees for the initial registration and annual renewals for all short-term rentals and for an administrative use permit application imposed for unhosted short-term rentals.

BACKGROUND:

Beginning with an initial presentation made to the City Council on October 13, 2020, concerning the regulating of short-term rentals, and continuing with four (4) further presentations on a proposed regulatory ordinance (September 14, 2021, September 28, 2021, December 14, 2021, and January 11, 2022), the Council eventually adopted a short-term rental ordinance (on second reading) at its meeting on January 25, 2022. The ordinance included a three-month amnesty period to allow owners and operators of short-term rentals to take steps to bring their rentals into compliance with the provisions of the ordinance. That three-month period ended on or about May 24, 2022.

Staff has prepared several forms necessary to implement the short-term ordinance, including: (1) the registration form (used for both initial registration and annual renewals of both hosted and unhosted short-term rentals); (2) an administrative use permit application (for unhosted short-term rentals); and (3) a transient occupancy tax reporting form. In addition, a City business license is required to operate any short-term rental operating in the City. While there is a business license fee amount for a short-term rental, there are no established fees for the registration/annual renewal form or for an administrative use permit application.

DISCUSSION:

The business license fee for short-term rentals will likely be $200 per year which is the minimum tax for any business with a fixed location in the City.1 However, there are no established fees for the 1 Although the City’s business license tax is based on annual gross receipts of the business, the rate is $0.50 per $1,000 of gross receipts, although there is a minimum business license tax of $200 for a business with a physical location in the City, and $100 for a business without a physical location in the City. For a short-term rental to be taxed at a rate greater than the minimum tax of $200 per year, it would have to generate gross rental income of at least $400,000 per year, which would be nearly $1,100 per night for 365 nights (and unhosted short-term rentals are limited to only 120 days per year, so the rental rate would have to be more than $3,300 per night).

Philip F. Sinco

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registration form or for the administrative use permit application. The City’s short-term rentals ordinance (Ordinance No. 2021-497) provides that the City Council may establish fees for both of these forms. Specifically, the ordinance provides, in relevant part:

18.55.05 Registration Application and Annual Renewal.

A. Registration and Annual Renewal. …

2. Fee. The registration form shall be accompanied by a filing fee in an amount established by resolution of the City Council and updated from time to time….

18.72.170 Application fee.

A fee shall be required to process an AUP in an amount established by resolution of the City Council and updated from time to time.

After estimating the amount of time and effort that will be involved to process the registration forms and the administrative use permit applications, staff is recommending that the City Council impose a fee of $180 for the initial registration fee and for annual renewals, which is the same fee as for a zoning clearance fee, and a fee of $394 for an administrative use permit application, which is the same fee as for a minor pre-application review. The $180 amount for the initial registration fee is likely less than what it will cost staff to process it, but this cost will be made up with the annual renewals which are expected to take less time than the initial registration (except when there are changes required from the initial registration form such as when there is a change for the local contact person or ownership of the property but this is not anticipated to happen often). Should staff subsequently determine that these fees are more or less than the reasonable staff time required to process the initial registrations/renewals and/or administrative use permit applications, staff will notify the City Council of this and request an appropriate adjustment in the fee amount(s).

FISCAL IMPACT:

None to minimal. The costs to issue the registration certificates, business licenses, and, when required, administrative use permits, for short-term rentals are expected to be offset by these fees.

ATTACHMENTS:

1. Resolution No. 2022-75
RESOLUTION NO. 2022-75

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUADALUPE, CALIFORNIA

ESTABLISHING FEES FOR SHORT-TERM RENTALS
WHEREAS, the City Council adopted a short-term rentals ordinance (Ordinance No. 2021-497) at its meeting on January 25, 2022; and
WHEREAS, this ordinance requires all short-term rentals to submit an initial registration form and annual renewal forms each year thereafter; and
WHEREAS, the ordinance also requires all unhosted short-term rentals to apply for an obtain an administrative use permit; and
WHEREAS, the ordinance provides that the City Council may establish fees for the initial registration and annual renewals of all short-term rentals (Guadalupe Municipal Code section

18.55.05), and a fee to apply for an administrative use permit (Guadalupe Municipal Code section

18.72.170), which fees may be updated by the City Council from time to time; and WHEREAS, after estimating the amount of time and effort that will be involved to process the registration forms and the administrative use permit applications, staff determined that a fee of $180 for the initial registration fee and for annual renewals, and a fee of $394 for an administrative use permit application, would offset the City’s costs to process initial registrations/annual renewals for short-term rentals, and to issue an administrative use permit when required.

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

SECTION 1. That a fee of $180 is hereby established for the initial registrations and annual renewals of all short-term rentals.

SECTION 2. That a fee of $394 is hereby established for administrative use permit applications for unhosted short-term rentals.

SECTION 3. That the City Council will adjust these fees is necessary as determined by City staff is the fees do not reasonably approximate the cost to the City for providing these services.

SECTION 4. That these fees will be included in the City’s Master Fee Schedule.

SECTION 5. That 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.

ATTACHMENT 1
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 of the 9th day of August 2022 by the following vote:

MOTION:

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. 2022-75, has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held August 9, 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

Guadalupe City CouncilAugust 9, 2022

Guadalupe City Council
August 9, 2022