Guadalupe City Council
June 23, 2026

June 23, 2026 City of Guadalupe Council Meeting Agenda Page 1 of 5 12 City of Guadalupe
AGENDA
Regular Meeting of the Guadalupe City Council
Tuesday, June 23, 2026, at 6:00 pm
City Hall, Council Chambers, 918 Obispo Street, Guadalupe CA 93434 The City Council meeting will broadcast 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 submit a written comment for the Community Participation Forum or on a specific agenda item, please submit via email to [email protected] no later than 2:00 pm on Tuesday, June 23, 2026.

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.cityofguadalupe.org 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 4:00 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 4:00 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 Eugene Costa Jr.

Council Member Whitney Furness
Council Member Amelia M. Villegas
Mayor Pro Tempore Christina Hernandez
Mayor Ariston Julian

2. PLEDGE OF ALLEGIANCE

3. MOMENT OF THANKS, APPRECIATION OR CONDOLENCES
June 23, 2026 City of Guadalupe Council Meeting Agenda Page 2 of 5

4. AGENDA REVIEW
At this time the City Council will review the order of business to be conducted and receive requests for, or make announcements regarding, any change(s) in the order of business.

5. COMMUNITY PARTICIPATION FORUM
Each person will be limited to a discussion of three (3) minutes or as directed by the Mayor. Pursuant to the 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 (A-H)
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. Ratify payment of warrants for the period ending May 29, 2026, and June 12, 2026.

C. Approve the Minutes of the City Council regular meeting of June 9, 2026.

D. Adopt Resolution No. 2026-23 approving a list of projects funded by Senate Bill 1 (SB1), the Road Repair and Accountability Act for fiscal year 2026-2027.

E. Adopt Resolution No. 2026-24 initiating proceedings for the annual levy of assessments for the Pasadera Landscape and Lighting District for fiscal year 2026-2027; and adopt Resolution No. 2026-25 approving the preliminary Engineer’s report for the Pasadera Landscape and Lighting District.

F. Adopt, on the second reading, Ordinance No. 2026-527 adopting the 2025 California Fire Code and amending the Guadalupe Municipal Code to update the fire and safety regulations.

G. Adopt, on the second reading, Ordinance No. 2026-528 adding Chapter 3.34 to Title 3 of the Guadalupe Municipal Code establishing a Cannabis Business Tax.

H. Adopt, on the second reading, Ordinance No. 2026-529 amending portions of Chapter 3.20 to Title 3 of the Guadalupe Municipal Code related to Transient Occupancy Tax to increase the tax rate from 6% to 12% and to include additional types of occupancies subject to the tax.

MANAGEMENT REPORTS

7. CITY ADMINISTRATOR: (Information Only)
A. City Administrator’s report for June 23, 2026
June 23, 2026 City of Guadalupe Council Meeting Agenda Page 3 of 5

8. DIRECTOR OF PUBLIC SAFETY: (Information Only)
A. Director of Public Safety report for June 23, 2026
B. Police Department report for May 2026
C. Fire Department report for May 2026
D. Code Compliance report for May 2026

REGULAR BUSINESS

9. Calling and giving notice of the general municipal election to be held on November 3, 2026, and requesting consolidation with the statewide general election, and establishing regulations for candidate statements.

Written report: Philip F. Sinco, City Attorney
Recommendation: That the City Council:
a. Adopt Resolution No. 2026-26 calling and giving notice for the holding of a general municipal election on November 3, 2026, for the election of certain officers as required by the provisions of the laws of the state of California, and requesting that the Board of Supervisors consolidate the City's general municipal election with the statewide general election; and b. Adopt Resolution No. 2026-27 establishing regulations for candidates’ statements.

10. Submission of a Measure to the voters establishing a Cannabis Business Tax.

Written report: Philip F. Sinco, City Attorney
Recommendation: That the City Council:
a. Adopt Resolution No. 2026-28 ordering an election to be held on November 3, 2026, for submission to the voters for approval of a question relating to establishing a cannabis business tax until ended by voters; and
b. Adopt Resolution No. 2026-29 setting priority to the City Council for filing a written argument in favor of the measure, and directing the City Attorney to prepare an impartial analysis; and c. Adopt Resolution No. 2026-30 providing for the filing of rebuttal arguments. d. By motion, authorize the Mayor or two members of the City Council to work with staff on preparing a written argument in favor of the measure.

11. Submission of a Measure to the voters to increase the Transient Occupancy Tax Rate from 6% to 12% and include additional types of occupancies subject to the tax.

Written report: Philip F. Sinco, City Attorney
Recommendation: That the City Council:
a. Adopt Resolution No. 2026-31 ordering an election to be held on November 3, 2026, for submission to the voters for approval of a question relating to the increase of the local transient occupancy tax from 6% to 12% and to include additional types of occupancies subject to the tax; and
b. Adopt Resolution No. 2026-32 setting priority to the City Council for filing a written argument in favor of the measure, and directing the City Attorney to prepare an impartial analysis; and c. Resolution No. 2026-33 providing for the filing of rebuttal arguments; and d. By motion, authorize the Mayor or two members of the City Council to work with staff on preparing a written argument in favor of the measure.

June 23, 2026 City of Guadalupe Council Meeting Agenda Page 4 of 5

12. Adoption of Accounting Technician Classification and Elimination of the Account Clerk III Classification.

Written report: Sylvia Estrada, HR Manager
Recommendation: That the City Council adopt Resolution No. 2026-34 approving the Accounting Technician classification specification, eliminating the obsolete Account Clerk III classification, and authorizing incorporation of the new classification into the City’s classification plan and salary schedule.

13. City of Guadalupe Preliminary Enterprise Fund Draft Budget FY 2026-27 Workshop.

Written report: Eli Martinez, Finance Director
Recommendation: That the City Council review the preliminary draft budget for fiscal year 2026- 27 and provide necessary feedback during this workshop.

14. FUTURE AGENDA ITEMS

15. ANNOUNCEMENTS – COUNCIL ACTIVITY/COMMITTEE REPORTS

16. 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 19th day of June 2026.
__________________________________
David Trujillo, City Administrator
David Trujillo
June 23, 2026 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, July 14, 2026, at 6:00 p.m. / Regular Meeting
Water Standby FY 2026-27 City Engineer Consent Calendar Pasadera LLD FY 2026-27 City Engineer Public Hearing
Benefit Assessment District FY 2026-27 City Engineer Public Hearing Guadalupe Lighting District FY 2026-27 City Engineer Public Hearing Street Rename – Calle Cesar Chavez Planning Department Public Hearing Amendments to Chapter 18.52, 18.60, and 18.64 of the
GMC – Zoning
Planning Department Public Hearing
Approval FY 2026-27 Budget Finance Director Regular Business Tuesday, July 28, 2026, at 6:00 p.m. / Regular Meeting
Other Unscheduled Items Proposed
Date of Item
Department Agenda Category
Gift Policy City Attorney New Business
Social Host Ordinance City Attorney New Business
Personnel Manual Update New Business
Pasadera Development Annual Update City Engineer
Water and Sewer Rate Study City Administrator New Business Master Fee Schedule Update Aug 2026 Finance Director
Cost Allocation Plan Aug 2026 Finance Director
Vacant Commercial Building Aug 2026 City Attorney
Veterans Building MOU Aug 2026
Council & Recreation Commission Joint Meeting
Pre�rd:

Veroni abian
Agenda Item No. 6B

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
�
Agenda of June 23, 2026
David Trujillo
Finance Account Clerk
Eli Martinez
Finance Director City Administrator
SUBJECT: Payment of warrants for the period ending May 26, 2026, to be ratified for payment by the City Council. Subject to having been certified as being in conformity with the budget by the Finance Department staff.

RECOMMENDATION:

That the City Council ratify the listing of hand checks and warrants to be paid on May 29, 2026.

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.

City of Guadalupe
Payable Register
Payable Detail by Vendor Number
Packet: APPKT00937 - 05.29.2026 WEEKLY AP RUN
,Payable# Payable Type Post Date Payable Date Due Date Discount Date Amount Tax Shipping Discount Total Payable Description Bank Code
Vendor: A&VOl -ASH LEY & VANC E ENGINEERI N
91621 Invoice 5/19/2026 5/19/2026 5/19/2026
ADM - 303 OBISPO IMPROVEMENTS PROJ... Warr Bank Acct - Warrants Bank Account Items
Item Description
ADM - 303 OBISPO IMPROVEMENTS

PROJECT
Distributions
Commodity
NA
Units

0.00 Price

0.00 Account Number
089-4444-3104
Account Name Project Account Key
303 Obispo Street Site lmprovemen
Vendor: AJSOl -ALTAGRACIA JUAR EZ SOTO
06012026 Invoice 6/1/2026 6/1/2026 6/1/2026

FINANCE-CHECK REQEST-REIMBURSEMENT

ON OVERCHARED
Warr Bank Acct - Warrants Bank Account
Items
Item Description

FINANCE - CHECK REQEST -

REIMBURSEMENT ON OVERCHAR
Distributions
Commodity
NA
Account Number Account Name
010-1033 Utility Billing Receivable
Vendor: AQUOl -AQUA-MET RI C SALES COMPANY
INV0114296 Invoice 5/19/2026
Units Price

0.00 0.00
Project Account Key
5/19/2026 5/19/2026
WATER - 3/4" SL IPERL TR/PL YEAR 11 Warr Bank Acct - Warrants Bank Account Items
Item Description
WATER - 3/4" SL IPERL TR/PL YEAR 11
Distributions
Commodity
NA
Account Number
010-4420-1535
Account Name
Meters
INV0114405 Invoice 5/21/2026
Units

0.00 Price

0.00 Project Account Key
5/21/2026 5/21/2026
WATER - 5/8"X3/4" IPERL TR/PL lOOCF Warr Bank Acct - Warrants Bank Account Items
Item Description
WATER - 5/8"X3/4" !PERL TR/PL lOOCF
Distributions
Commodity
NA
Account Number
010-4420-1535
Account Name
Meters
Vendor: ASJOl -ANTHONY SAN JUAN
05112026 Invoice 5/11/2026
Units

0.00 Price

0.00 Project Account Key
5/11/2026 5/11/2026

P&R-CHECK REQUEST - REFUNDABLE -

VETERANS HALL DEP
Warr Bank Acct - Warrants Bank Account
Items
Item Description

P&R-CHECK REQUEST - REFUNDABLE -

VETERANS HALL DEP
Commodity
NA
Distributions
Account Number
001-2044
6/2/2026 3:46:43 PM
Account Name
Auditorium/Park Deposits
Units

0.00 Price

0.00 Project Account Key
On Hold
5/19/2026
No
Amount
414.00
Amount
414.00
6/1/2026
No
No
No
Amount

65.49 Amount

65.49 5/19/2026
Amount
219.04
Amount
219.04
5/21/2026
Amount
2,023.32
Amount
2,023.32
5/11/2026
No
Amount
125.00
Amount
125.00
Vendor Total:
414.00 0.00 0.00 0.00
Tax Shipping Discount

0.00 0.00 0.00
Percent
100.00%
Total
414.00
Vendor Total:

65.49 0.00 0.00 0.00
Tax Shipping Discount Total

0.00 0.00 0.00 65.49
Percent
100.00%
Vendor Total:
219.04 0.00 0.00
Tax Shipping Discount

0.00 0.00 0.00
Percent
100.00%
2,023.32 0.00 0.00
Tax Shipping Discount

0.00 0.00 0.00
Percent
100.00%

0.00 Total
219.04

0.00 Total
2,023.32
Vendor Total:
125.00 0.00 0.00
Tax Shipping Discount

0.00 0.00 0.00
Percent
100.00%

0.00 Total
125.00
414.00
414.00

65.49 65.49
2,242.36
219.04
2,023.32
125.00
125.00

Agenda Item No. 6B

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Prepared by: Approved by:

Veronica Fabian
Finance Account Clerk Finance Director
David Trujillo
City Administrator
SUBJECT: Payment of warrants for the period ending June 09, 2026, to be ratified for payment by the City Council. Subject to having been certified as being in conformity with the budget by the Finance Department staff.

RECOMMENDATION:

That the City Council ratify the listing of hand checks and warrants to be paid on June 12, 2026.

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.

City of Guadalupe
Payable Register
Payable Detail by Vendor Number
Packet: APPKT00950 - 06.12.2026 WEEKLY AP RUN
Payable# Payable Type Post Date Payable Date Due Date Discount Date Amount Tax Shipping Discount Total Payable Description Bank Code
Vendor: AGD0l • ANDREW GOODWIN DESIGNS
825-17 Invoice 5/29/2026 5/29/2026 5/29/2026

ADM -ROYAL THEATER
.,Items
Warr Bank Acct - Warrants Bank Account
Item Description

ADM-ROYAL THEATER
Distributions
Account Number
079-4542-2166
Commodity
NA
Account Name
Activity
Vendor: AMA02 • AMAZON BUSINESS
1JR4-YWGW-PYMX Invoice 6/10/2026
Units

0.00 Price

0.00 Project Account Key
6/10/2026 6/10/2026
FIRE -ACCT#:A19RD4DAF93AUQ - PAPER
CLIPS
Warr Bank Acct - Warrants Bank Account
Items
Item Description
FIRE -ACCT#:A19RD4DAF93AUQ

PAPER CLIPS
Commodity
NA
Distributions
Account Number
001-4220-1200
Items
Item Description
Account Name
Office Supplies & Postage
FIRE -ACCT#:A19RD4DAF93AUQPAPER CLIPS
Commodity
NA
Distributions
Account Number
001-4220-1460
Items
Item Description
Account Name
Vehicle Maintenance
FIRE -ACCT#:A19RD4DAF93AUQPAPER CLIPS
Commodity
NA
Distributions
Account Number
001-4220-1550
Account Name
Operating Supplies & Exp.

Vendor: BAU04 - BAUER COMPRESSORS, INC
0000351081 Invoice 6/10/2026
Units Price

0.00 0.00
Project Account Key
Units Price

0.00 0.00
Project Account Key
Units Price

0.00 0.00
Project Account Key
6/10/2026 6/10/2026
FIRE -CUST#:003364 -ANNUAL PM & AIR
TEST
Warr Bank Acct - Warrants Bank Account
Items
Item Description

FIRE - SERVICE LABOR - ANNUAL PM &

AIR TEST
Distributions
Commodity
NA
Account Number Account Name
001-4220-1400 Equipment Maintenance
Vendor: CAN03 - CANNON CORPORATION
� Invoice 5/12/2026
Units Price

0.00 0.00
Project Account Key
5/12/2026 5/12/2026
ADM-PROJECT#:250923 - 303 OBISPO SITE

IMPROVEMENTS
Warr Bank Acct - Warrants Bank Account
6/16/2026 9:14:18 AM
On Hold
5/29/2026
No
Amount
46,313.72
Amount
46,313.72
6/10/2026
No
Amount
156.13
Amount
156.13
Amount

70.97 Amount

70.97 Amount
211.41
Amount
211.41
6/10/2026
No
Amount
1,806.78
Amount
1,806.78
5/12/2026
No
46,313.72 0.00
Vendor Total:

0.00 0.00
Tax Shipping Discount Total

0.00 0.00 0.00 46,313.72
Percent
100.00%
438.51
Tax Shipping

0.00 0.00
Percent
100.00%
Tax Shipping

0.00 0.00
Percent
100.00%
Tax Shipping

0.00 0.00
Percent
100.00%
Vendor Total:

0.00 0.00 0.00
Discount Total

0.00 156.13
Discount Total

0.00 70.97
Discount Total

0.00 211.41
Vendor Total:
1,806.78 0.00 0.00 0.00
Tax Shipping Discount Total

0.00 0.00 0.00 1,806.78
Percent
100.00%
Vendor Total:
26,404.25 0.00 0.00 0.00
46,313.72
46,313.72
438.51
438.51
1,806.78
1,806.78
90,174.51
26,404.25

June 9, 2026 City of Guadalupe Council Meeting Minutes Page 1 of 7 Minutes
City of Guadalupe
Regular Meeting of the Guadalupe City Council
Tuesday, June 9, 2026, at 6:00 pm
City Hall, Council Chambers, 918 Obispo Street, Guadalupe CA 93434

1. ROLL CALL:

Council Member Eugene Costa Jr.

Council Member Whitney Furness
Council Member Amelia M. Villegas
Mayor Pro Tempore Christina Hernandez
Mayor Ariston Julian
Mayor Julian called the meeting to order at 6:00 p.m.

All Present

2. PLEDGE OF ALLEGIANCE

3. MOMENT OF THANKS, APPRECIATION OR CONDOLENCES
Mayor Julian asked for a moment of silence for the young individuals that were killed over the weekend and for their families that are suffering.

4. AGENDA REVIEW
At this time the City Council will review the order of business to be conducted and receive requests for, or make announcements regarding, any change(s) in the order of business.

No changes were made to the agenda.

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

1. Judy Wilson. Expressed concerns regarding city communication and transparency including public access to information Parks and Recreation department staffing changes and accessibility of meeting recordings.

Agenda Item No. 6C
June 9, 2026 City of Guadalupe Council Meeting Minutes Page 2 of 7

2. Stephanie Krouse. Ms. Krouse Commented on the elimination of the recreation manager's position the impact on community programs and services and the need for transparency regarding decisions affecting city operations.

3. Anita Navarro. Ms. Navarro commented on the elimination of the recreation manager position and expressed concerns regarding impacts to youth recreation programs senior activities community events and Parks and Recreation services.

4. Emma Vega. Ms. Vega read a statement on behalf of Graciella Rodriguez that she submitted her comment through e-mail since she could not attend. The statement expressed disappointment over the dismissal of Arnulfo Navarro III, Highlighting his contributions, vision and positive impact on the youth and families of Guadalupe.

No action was taken by the City Council on matters raised during public comment.

6. CEREMONIAL CALENDAR
A. Biodiversity Proclamation
B. Pride Month Proclamation
Public Comment:

All public comments were in favor of the Biodiversity Proclamation

1. Eric Cardenas
Santa Barbara Botanic Garden
Biodiversity Working Group

2. Stephanie Diaz
Land Trust for Santa Barbara County

3. Candace Manigan
Costal Ranches Conservancy

4. Jeannie Gina Sparks
Santa Barbara County Action Network (SBCAN)
Public Comment submitted via email regarding the Biodiversity Proclamation:

1. Eric Cardenas
Director of Impact and Advocacy

2. Daniel Gullett
Land Use Planner

3. The Land Trust for Santa Barbara County
June 9, 2026 City of Guadalupe Council Meeting Minutes Page 3 of 7

4. Noah Bolland
Programs Manager
Heal the Ocean

5. Anne-Marie Parkinson, MESM
Executive Director
Santa Barbara County Fire Safe Council

6. Saule Baipsys
Outreach Coordinator
Guadalupe-Nipomo Dunes Center
Written comments for e-mail submissions:
https://cityofguadalupe.org/document/items-distributed-during-6-9-2026-cc-meeting/ Public Comment for Pride Month Proclamation:

1. Alhan Diaz Correra, a community member, accepted the proclamation and provided remarks.

Proclamations were issued: no vote required.

5. CONSENT CALENDAR (A-D)
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. Ratify payment of warrants for the period ending May 22, 2026.

C. Approve the Minutes of the City Council regular meeting of May 26, 2026.

D. Adopt Resolution No. 2026-22 authorizing the filing of a claim with the Santa Barbara County Association of Governments for allocation of Transportation Development Act Funds for fiscal Year 2026-2027.

Motion was made by Council Member Furness and seconded by Council Member Hernandez to approve the Consent Calendar.

Motion passed. 5-0.

MANAGEMENT REPORTS
June 9, 2026 City of Guadalupe Council Meeting Minutes Page 4 of 7

6. CITY ADMINISTRATOR: (Information Only)
a. City Administrator’s report for June 9, 2026
b. Planning Department report for May 2026
c. Building Department report for May 2026
d. Public Works and Engineering report for May 2026
The administrator provided brief updates on public works maintenance water line repairs, wastewater plant work and ongoing projects including the Royal Theater, Las Mujeres Park, 303 Obispo Site Improvement Project, and the Amtrak station. He also reported receipt of the notice to proceed for the California Clean Air Grant.

7. DIRECTOR OF PUBLIC SAFETY: (Information Only)
a. Director of Public Safety report for June 9, 2026
Chief Cash reported on police fire EMS emerging emergency preparedness and community programs council members ask clarifying questions regarding the medical director vacancy and the senior work eligibility program.

REGULAR BUSINESS

8. Introduction of Ordinance No. 2026-527 adopting the 2026 California Fire Code and amend the Guadalupe Municipal Code to update the fire and safety regulation Written report: Michael Cash, Director of Public Safet
Recommendation: That the City Council introduce, on the first reading, and continue to the meeting of June 23, 2026, for second reading and adoption, Ordinance No. 2026-527 adopting the 2026 California Fire Code and amending the specified fire and safety ordinances in the Guadalupe Municipal Code.

Chief Cash introduced ordinance No. 2025-527 an ordinance adopting the 2026 California Fire Code and amending the Guadalupe municipal code to update fire and life safety regulations he provided an overview of the required state code updates and the need to align local fire standards with current California Fire Code provisions.

Motion was made by Council Member Villegas and seconded by Council Member Furness for the first reading of Ordinance No. 2026-527.

Motion passed. 5-0.

9. Introduction of Ordinance No. 2026-528 adding Chapter 3.34 to Title 3 of the Guadalupe Municipal Code establishing a Cannabis Business Tax.

Written report: Philip F. Sinco, City Attorney
Recommendation: That the City Council introduce, on the first reading, and continue to the meeting of June 23, 2026, for second reading and adoption, an ordinance that would establish a cannabis business tax subject to the approval of the voters.

June 9, 2026 City of Guadalupe Council Meeting Minutes Page 5 of 7 City attorney Phil Sinco introduced ordinance number 2026 – 528, proposing to replace the existing negotiated cannabis public benefit fee with a voter approved cannabis business tax. The ordinance allows the council to set retail cannabis tax rates up to 8% and a non-retail rate up to 4%, with actual rates to be set later by resolution. The ordinance must be approved by voters before taking effect and will return at the next meeting for second hearing.

Council members asked clarifying questions regarding ballot placement and timing.

Motion was made by Council Member Villegas and seconded by Council Member Furness to introduce the first reading of ordinance No. 2026-528.

Motion passed. 5-0.

10. Introduction of Ordinance No. 2026-529 increasing the rate of the City’s Transient Occupancy Tax from 6% to 12% and to include additional types of occupancies subject to the tax.

Written report: Philip F. Sinco, City Attorney
Recommendation: That the City Council introduce, on the first reading, and continue to the meeting of June 23, 2026, for the second reading and adoption, an ordinance to increase the City’s transient occupancy tax (TOT) rate from 6% to 12% and to expressly include additional types of occupancies subject to the tax.

Public Comment:

Mirya Beyler asked whether the TOT increase also requires voter approval and whether the ballot language will clarify it is not month to month.

City Attorney Phil Sinco introduced Ordinance No. 2026-529 to raise occupancy tax (TOT) and modernize outdated language. He noted Guadalupe TOT is far below regional rates, clarified exemptions for monthto-month tenants and recommended a 12% rate. The measure requires voter approval and will return for a second reading.

Motion was made by Council Member Furness and seconded by Council Member Hernandezto introduce ordinance No. 2026-528. as noted, and continue to the next meeting.

Motion passed. 5-0.

11. City of Guadalupe Preliminary Draft Budget FY 2026-27 Workshop.

Written report: Eli Martinez, Finance Director
Recommendation: That the City Council review the preliminary draft budget for fiscal year 2026- 27 and provide necessary feedback during this workshop.

The City Administrator and Finance Director presented the preliminary FY2026-27 budget, outlining a projected 3 million deficit Caused by long standing structural imbalances and cash flow constraints. Staff reviewed immediate cost control measures including freezing noncritical hiring, delaying capital projects, non-essential services, and tightening expenditure approvals. Public safety staffing and over time we're identified as major cost drivers.

June 9, 2026 City of Guadalupe Council Meeting Minutes Page 6 of 7 The Finance Director explained that current capital project obligations exceed available cash, requiring careful timing of project work and reimbursements. Staff also discussed revenue recovery opportunities such as the cannabis tax, TOT adjustments utility rate studies, fee updates, an improved grant reimbursement practices. Council discussed financial stabilization strategies, economic development needs, in long term recovery planning.

Public Comment:

1. Mira Beyler. Ms. Beyler urged greater transparency regarding the city’s current financial condition and encouraged forming a group focused on long-term community benefit.

2. Melanie Backer. Ms. Backer noted Guadalupe’s Long history of strong recreation programs and volunteer support and encouraged renewed community involvement to support youth activities.

12. FUTURE AGENDA ITEMS
Joint Commission meeting with the Recreation and Parks Commission

13. ANNOUNCEMENTS – COUNCIL ACTIVITY/COMMITTEE REPORTS
Council Member Villegas
Guadalupe Business Association meeting
Back a Youth event
Lunch on the Lawn at McKenzie
Summer Reading Program
Council Member Hernandez
Field Day at Mary Buren
Lunch on the Lawn at Mackenzie
Karaoke at the Social Club
The Little League
Council Member Costa Jr.

Promotion for Junior High students going to High School Food Bank
Mayor Julian
North County Subregional meeting in Solvang
Food Bank
June 9, 2026 City of Guadalupe Council Meeting Minutes Page 7 of 7

14. ADJOURNMENT
Motion was made by Council Member Costa Jr. and seconded by Council Member Villegas to adjourn the meeting.

Motion passed.5-0.

Meeting adjourned at 8:36 p.m.

Prepared by: Approved by:
_________________________________ ____________________________________ Judy Wilson, City Clerk Ariston Julian, Mayor

Agenda Item No. 6D

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of June 23, 2026

________________________________ __________________________________ Prepared by: Approved by:

Jeff van den Eikhof, City Engineer David Trujillo, City Administrator SUBJECT: Senate Bill 1 (SB1) Funding Project List for FY 2026-27 RECOMMENDATION:

That the City Council adopt Resolution No. 2026-23 to approve a list of projects funded by Senate Bill 1 (SB1), the Road Repair and Accountability Act.

BACKGROUND:

In April 2017, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor. The bill addressed the significant multi-modal transportation funding shortfalls statewide.

SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year. The City must include a list of all projects proposed to receive funding from the Road Maintenance & Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement.

DISCUSSION:

The City uses a Pavement Management System to evaluate the condition of the pavement on local roads and provide recommended pavement maintenance to extend the pavement’s life in a cost-effective manner. The information from the Pavement Management System is used to develop the annual pavement maintenance program. SB1 funds are used each year to pay for the design and construction of pavement maintenance program projects.

In FY 2026-27, the City will receive an estimated $233,044 in RMRA funding. Staff proposes using these SB1 funds towards the rehabilitation of the following streets:
• West Main Street, west of Highway 1
• Obispo Street from Highway 166 to Ninth Street
Jeff van den Eikhof

FISCAL IMPACT:

The SB1 Road Maintenance and Rehabilitation Account will provide approximately $233,044, which will be applied to the current budgeted capital improvements.

ATTACHMENTS:

1. Resolution No. 2026-23

RESOLUTION NO. 2026-23

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUADALUPE APPROVING A LIST OF PROJECTS FOR FISCAL YEAR 2026-27 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule forthe project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City will receive an estimated $233,044 in RMRA funding in Fiscal Year 2026-27 from SB 1; and
WHEREAS, this is the ninth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input into our community’s project list; and
WHEREAS, the City used a Pavement Management System to develop the SB 1 project list in its 2019 Pavement Maintenance Plan to ensure revenues are being used on the most high-priority and costeffective projects that also meet the community's priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate two streets this year and additional similar projects into the future; and
WHEREAS, the 2019 City of Guadalupe Pavement Maintenance Program Final Report found that the City’s streets and roads are generally in good condition and thisrevenue will help us maintain the overall quality of our road system and over the next decade will help to bring our streets and roads into an excellent condition; and
WHEREAS, the SB1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cuttingedge technology, materials and practices, will have significant positive co-benefits statewide.

ATTACHMENT 1

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

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The following previously proposed and adopted list of projects will be funded in-part with Fiscal Year 2026-27 Road Maintenance and Rehabilitation Account revenues. With the relisting of these projects in the adopted fiscal year resolution, the City is reaffirming to the public and the State our intent to fund these projects with Road maintenance and Rehabilitation Account revenues:

Title Description Location Project
Start
Project
Complete
Useful
Life
2026 Pavement
Rehabilitation
Pavement
Rehabilitation/Overlay
Obispo Street
Main to 9th Street
09/2026 05/2027 3-5 yrs
2026 Pavement
Rehabilitation
Pavement
Rehabilitation/Remove
and Replace Asphalt
West Main Street
West of Hwy 1
09/2026 05/2027 3-5 yrs
SECTION 3. The City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance with 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 23rd day of June 2026 by the following vote:

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

I, Judy Wilson, City Clerk of the City of Guadalupe, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2026-23, has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held June 23, 2026, and that same was approved and adopted.

ATTEST:
__________________________________ ____________________________________ Judy Wilson, City Clerk Ariston Julian, Mayor
APPROVED AS TO FORM:
__________________________________
Wendy Stockton, Assistant City Attorney

Agenda Item No. 6E

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of June 23, 2026

_______________________________ _________________________________ Prepared by: Approved by:

Jeff van den Eikhof, City Engineer David Trujillo, City Administrator SUBJECT:

Approving the Engineer’s Report and initiating the proceeding for the annual levy of assessment for the Pasadera Landscaping and Lighting District for Fiscal Year 2026/2027.

RECOMMENDATION:

It is recommended that the City Council:

1. Adopt Resolution No. 2026-24, initiating proceedings for the annual levy of assessments for the Pasadera Landscape and Lighting District for Fiscal Year 2026/2027.

2. Adopt Resolution No. 2026-25, approving the preliminary Engineer’s report for the Pasadera Landscape and Lighting District.

BACKGROUND:

The California Streets and Highway Code allows for the creation of Landscape and Lighting Districts (“Districts”) to fund the continued operations and maintenance of local parks and landscaping and lighting improvements within the Districts. The formation of Districts allows for the levy and collection of annual assessments on the County tax rolls from property within the District that benefits from the improvements.

Pasadera is a large residential and commercial subdivision located in the southern portion of Guadalupe.

Pasadera includes (802) single-family residences, (21.5) acres of commercial development, and a (14.37) acre school site. See Attachment 1 - District Diagram – Pasadera planned Improvements. The subdivision includes drainage basins, parks, street landscaping, and lighting, two (planned) bridges over the railroad tracks, and other amenities.

On October 10, 2017, the City Council held a Public Hearing to establish the Pasadera Landscaping and Lighting District (“District”) per the provisions of the Landscaping and Lighting Act of 1972. Immediately following the hearing, ballots from the landowners were counted for the establishment of the District.

Following the owner's approval, the City Council adopted a Resolution approving the formation of the District, confirming the Engineer’s Report, the Assessment Diagram, and related assessments.

Jeff van den Eikhof

DISCUSSION:

Each year after the initial formation of the District, an Engineer’s Report (Report)for the District must be prepared and approved by the City Council prior to each fiscal year to detail the proposed improvements and services to be provided by the District and the levy and collection of annual assessments for the next fiscal year. The City hired Willdan Financial Services to produce the Report for Fiscal Year 2026/2027 (See Attachment 3). The annual assessments, which are calculated in the attached Report, will provide funding for the net special benefit costs and expenses that are necessary to service and maintain the local parks, landscaping, and lighting improvements built with the development of properties within the District.

The City Council must first approve the Engineer’s Report (Report) as produced or as modified by the City Council by approving Resolution No. 2026-25. (See Attachment 4). After the Council’s has approved the Report, California Streets & Highways Code section 22624 requires the City Council to declare its intention to levy and collect assessments within the assessment district for the fiscal year stated in the Report (and provide certain information) which it can do by adopting Resolution No. 2026-24 (See Attachment 2).

FISCAL IMPACT:

The Report calculated the cost to the property owners to operate and maintain the constructed parks, landscaping, and lighting improvements per Equivalent Benefit Unit within the Districts annually as follows:

Zone A (Commercial Property along SR 166, Main Street): $21.49 (last year was $21.49) Sub-Zone B1 (Subdivided Residential Property): $444.00 (last year was $444.00) Sub-Zone B2 (Non-Subdivided Residential Property north of Railroad): $4.79 (last year was $4.79) Sub-Zone B3 (Non-Subdivided Residential Property south of Railroad): $20.00 (last year was $20.00) The annual Report calculates the costs based on the number of lots subdivided and the total cost to operate and maintain the covered improvements in the District. The FY 2026/27 assessments are proposed to remain the same as the previous assessment for FY 25/26.

Included in the Report is the calculation of the “general benefit” to the City as a whole of the assessment district. Pursuant to California law, in addition to the “special benefit” to property owners in the assessment district, there is a “general benefit” to the general public, and the percentage cost of this general benefit cannot be imposed on those who own property in the assessment district and must instead be borne by the City’s taxpayers. The Report determined that the general benefit of the improvements in the assessment district are 5% of the total valuation. (See Attachment 3, pages 18-20).

The Report provides that the entire cost of the general benefit is $6,810, which is borne by the City’s general fund (not in terms of any payments, but rather, in terms of Public Works staff time).

ATTACHMENTS:

1. District Diagram – Pasadera Planned Improvements

2. Resolution No. 2026-24, initiating proceedings for the annual levy of assessments for the Pasadera Landscape and Lighting District for Fiscal Year 2026/2027.

3. Preliminary Engineer’s Report for the Pasadera Landscaping and Lighting District, Fiscal Year 2026/2027

4. Resolution No. 2026-25, approving the preliminary Engineer’s Report for the Pasadera Landscape and Lighting District.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

District Diagram – Boundary and Zones, Fiscal Year 2026/2027 ATTACHMENT 1

RESOLUTION NO. 2026-24

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

PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS FOR THE PASADERA LANDSCAPING AND LIGHTING DISTRICT, FISCAL YEAR 2026/2027
WHEREAS, the City Council of the City of Guadalupe, California, has, by previous Resolutions, formed the Pasadera Landscaping and Lighting District and initiated proceedings for the annual levy of assessments for Fiscal Year 2026/2027 pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “1972 Act”) that authorizes the levy and collection of assessments by the County of Santa Barbara on behalf of the City of Guadalupe to pay the maintenance and services landscaping, appurtenant facilities and operations related thereto; and WHEREAS, the City previously determined that the assessments for the District were approved in accordance with the requirements of the California Constitution, Articles XIIID; and WHEREAS, the City Council retained Willdan Financial Services for the purpose of assisting with the Annual Levy of the District, and to prepare and file an Engineer’s Annual Levy Report with the City Clerk in accordance with the 1972 Act; and
WHEREAS, there has now been presented to this City Council the Engineer’s Annual Levy Report, which describes the District and improvements and includes the proposed budgets and assessments for Fiscal Year 2026/2027; and
WHEREAS, the City Council carefully examined and reviewed the Engineer’s Annual Levy Report as presented, each of the budget items and documents as set forth therein, and found that the proposed assessments contained therein, have been spread in accordance with the benefits received from the improvements, operation, maintenance, and services to be performed within the District, as set forth in said Report; and
WHEREAS, the City Council has approved and ordered Willdan Financial Services to file the Engineer’s Annual Levy Report concerning the levy of assessments for the District in accordance with Chapter 3, Section 22622 of the 1972 Act with the City Clerk of the City of Guadalupe; and WHEREAS, it is the intent of the City Council to levy an assessment for the Fiscal Year 2026/2027 as specified in said Engineer’s Report.

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

SECTION 1. The above recitals are true and correct.

SECTION 2. The City Council hereby declares its intention to seek the annual levy and collection of assessments within the Pasadera Landscaping and Lighting District pursuant to the 1972 Act, over and including the land within the boundaries of said District, and to levy and collect ATTACHMENT 2

assessments on such land to pay the annual costs and expenses of the improvements and services described in the Engineer’s Annual Levy Report, for Fiscal Year 2026/2027.

SECTION 3. The boundaries of the District is described in the Engineer’s Annual Levy Report, as ordered by previous Resolution, and a copy of the District boundaries is on file in the office of Public Works. The District as outlined in the Engineer’s Report, incorporates Zones of benefit as authorized in accordance with Chapter 1, Sections 22568 and 22570 of the 1972 Act, which are designated as:

Zone A
Zone B, including Sub-Zone B1, Sub-Zone B2, and Sub-Zone B3 SECTION 4. The improvements within the District may include any improvements, expenses and services authorized pursuant to the 1972 Act including, but not limited to, the maintenance, operation and servicing of local street lighting, parks, and various landscaping improvements established in connection with development of the properties within the District, and which shall be maintained for the special benefit of those properties. The maintenance and servicing of the improvements generally include, but are not limited to, the materials, equipment, utilities, labor, and incidental expenses, including administrative expenses, required for annual operation, as well as the performance of periodic repairs and replacement activities as needed to provide for the growth, health, and beauty of the parks and landscaping within specified public areas, rights-of-way and/or dedicated easements, the proper operation and functioning of related amenities including, irrigation and drainage systems, specified fencing, hardscapes; sports courts and fields; playground equipment and structures; sidewalks, ornamental or safety lighting; benches, trash receptacles; drinking fountains, picnic facilities and any other equipment, structures or facilities related to the parks and/or landscape areas; and the proper operation of the public street lights and street lighting system within the public rights-of-way which may include, but is not limited to the furnishing of electric current or other illuminating agent; as needed maintenance, repair, and replacement of worn out electrical components and light fixtures, including bulbs, ballasts, photoelectric cells, meters, electrical cables; repair or replacement of damaged poles, ground wires, and conduits caused by accidents, vandalism, time, and weather; and monitoring of the Underground Service Alert (USA) network to prevent damage by excavation. The Engineer’s Annual Levy Report filed with the City Clerk and presented to the City Council more fully describes the improvements proposed for Fiscal Year 2026/2027.

SECTION 5. The Engineer’s Report as presented, consists of the following:
5a.) The Plans and Specifications which describe the boundaries of the District and the improvements associated therewith that provide special benefits to the parcels therein; and, 5b.) The Method of Apportionment that details the method of calculating proportional special benefit and the annual assessment obligation for each affected parcel; and, 5c.) The Estimate of Improvement Costs including the calculation of the assessments and the estimated annual funding (Budget) required for the annual maintenance, servicing, and operation of the parks, landscaping and lighting improvements and specifically the costs

associated with the improvements determined to be of special benefit to parcels within the District, establishing the proposed assessments for fiscal year 2026/2027; and, 5d.) The Assessment Range Formula (Annual Inflationary Adjustment) authorized for annual adjustments to the Maximum Assessment Rates per Equivalent Benefit Unit previously established and approved by the property owner(s) of record in a protest ballot proceeding at the time the District was formed pursuant to the California Constitution Article XIIID; and, 5e.) A District Diagram outlining the boundaries of the District and Zones therein for fiscal year 2026/2027; and,
5f.) An Assessment Roll containing the proposed levy of assessment for fiscal year 2026/2027 for each Assessor Parcel Number currently identified within the District; and, SECTION 6. For Fiscal Year 2026/2027, the proposed assessments outlined in the Engineer’s Report are within the assessment limits previously established for the District as approved by the property owners, and do not require additional property owner ballot proceedings at this time for any assessment increase in accordance with the requirements of the California Constitution, Article XIIID.

SECTION 7. The City Council hereby declares its intention to conduct a public hearing concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the 1972 Act.

SECTION 8. Notice is hereby given that the City Council will hold a Public Hearing on these matters on Tuesday, July 14, 2026, at 6:00 p.m., or as soon thereafter as feasible, in the City Hall (Council Chambers), located at 918 Obispo Street, Guadalupe, California.

SECTION 9. The City Clerk or their designee is hereby authorized and directed to give notice of the time and place of the Public Hearing for the District and assessments as provided by law by causing the publishing notice of the public hearing once in the local newspaper not less than ten (10) days before the date of the public hearing.

SECTION 10. 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 23rd day of June 2026 by the following vote:

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

I, Judy Wilson, City Clerk of the City of Guadalupe, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2026-24, has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held June 23, 2026, and that same was approved and adopted.

ATTEST:
____________________________________
Ariston Julian, Mayor
____________________________________
Judy Wilson, City Clerk
APPROVED AS TO FORM:
___________________________________
Wendy Stockton, Assistant City Attorney

CITY OF GUADALUPE
Engineer’s Report
Pasadera Landscaping and Lighting District
Engineer’s Annual Report
Fiscal Year 2026/2027
Intent Meeting: June 23, 2026
Public Hearing: July 14, 2026

CITY OF GUADALUPE
918 OBISPO STREET
GUADALUPE, CA 93434
JUNE 2026

PREPARED BY

WILLDAN FINANCIAL SERVICES
27368 Via Industria
Suite 200
Temecula, CA 92590
T. 951.587.3500|800.755.6864
F. 951.587.3510|888.326.6864
Property Tax Information Line
T.866.807.6864
www.willdan.com
ATTACHMENT 3

ENGINEER'S REPORT AFFIDAVIT
City of Guadalupe
Pasadera Landscaping and Lighting District
Annual Levy of Assessments for
Fiscal Year 2026/2027
City of Guadalupe,
County of Santa Barbara, State of California
As part of the Resolution of Intention packet presented for the consideration of the Guadalupe City Council, this Report and the enclosed budgets, diagrams, and descriptions outline the improvements, estimated expenses and annual assessments to be collected on the County tax rolls in fiscal year 2026/2027 for the Pasadera Landscaping and Lighting District, which includes each lot, parcel, and subdivision of land within said District, as the same existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Santa Barbara County Assessor’s maps for a detailed description of the lines and dimensions of each parcel within the Pasadera Landscaping and Lighting District and incorporates all subsequent subdivisions, lot-line adjustments, or parcel changes therein. The undersigned respectfully submits the enclosed Report as directed by the City Council.

Dated this ________ day of ______________, 2026.

Willdan Financial Services
Assessment Engineer
On Behalf of the City of Guadalupe
By: ________________________________
Jim McGuire
Principal Consultant
By: ________________________________
Tyrone Peter
PE # C 81888
Table of Contents
Introduction ............................................................................................... 1 Report Content and Annual Proceedings ................................................................ 1 Part I — Plans and Specifications ........................................................... 5 Description of the District ......................................................................................... 5 Zones of Benefit ........................................................................................................ 5 Description of the District Improvements ............................................................. 10 Part II — Method of Apportionment ....................................................... 16 Legislative Authority and Provisions..................................................................... 16 Benefit Analysis ....................................................................................................... 17 Assessment Methodology ...................................................................................... 21 Part III – Estimate of Costs ..................................................................... 28 Calculation of Assessments ................................................................................... 28 Zone Budgets and Assessments ........................................................................... 29 Assessment Range Formula .................................................................................. 31 Part IV — Assessment Roll .................................................................... 32 Part V — District Diagrams .................................................................... 33 District Diagram – Boundary and Zones, Fiscal Year 2026/2027 ......................... 34 District Diagram – Development and Improvements, Planned at Buildout ........ 35 District Diagram – Development and Improvements, Fiscal Year 2026/2027 ..... 36 Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Introduction
On October 10, 2017, the City Council of the City of Guadalupe, County of Santa Barbara, State of California (the “City”), under the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the “1972 Act”) and the provisions of the California Constitution Article XIII D (the “Constitution”), formed the City’s maintenance assessment district designated as:

Pasadera Landscaping and Lighting District
(hereafter referred to as the “District”), and established the maximum assessments determined to be necessary to support and maintain various landscaping and lighting improvements that will provide special benefits to properties within the District which includes all lots and parcels of land within the planned non-residential and residential development area identified in the DJ Farms Specific Plan and commonly referred to as the Pasadera development (hereafter referred to as the “Pasadera Development”) located on the south side of Main Street near Obispo Street and Flower Avenue.

Report Content and Annual Proceedings
This “Engineer’s Annual Report Fiscal Year 2026/2027” (the “Report”) has been prepared pursuant to Chapter 1, Article 4 and Chapter 3 of the 1972 Act, and presented to the City Council for their consideration and approval of the proposed improvements and services to be provided within the District and the levy and collection of annual assessments related thereto for fiscal year 2026/2027.

This Report outlines the District structure, the improvements, and the proposed assessments to be levied in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements for the fiscal year. The annual assessments to be levied on properties within the District will provide funding for the continued operation and maintenance of the local parks, landscaping and lighting improvements within the District and zones of benefit (“Zones”) established herein, which provide special benefits to the properties within the District and each respective Zone.

To adequately provide and fund the parks, landscaping and lighting improvements constructed and installed in connection with the development of properties within the District for fiscal year 2026/2027, the City Council has determined that it is appropriate and in the public’s best interest to levy annual assessments on the County tax rolls for the benefit of properties therein to fund the estimated special benefit improvement costs that are considered necessary to maintain and service the improvements. Furthermore, the improvements to be provided and funded in whole or in part by the District assessments are consistent with the development plans and specifications for the Pasadera Development and the overall improvements outlined in the DJ Farms Specific Plan which are on file in the Office of Public Works of the City of Guadalupe and by reference these plans, and specifications are made part of this Report.

Each Zone (incorporating the sub-zones therein) outlined in this Report is a reflection of the various improvements and the types of improvements and services to be provided by the District for the properties that are directly associated with and benefit from those improvements. The net annual cost to provide the improvements in each Zone is based on the various improvements and the types of improvements and services to be provided by the District for the properties that are directly associated with and benefit from those improvements and the net cost of providing those improvements and services are allocated to the benefiting properties within the Zones using a weighted method of apportionment (refer to Assessment Methodology in “Part II — Method of Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Apportionment”) that calculates the proportional special benefit and assessment for each parcel as compared to other properties that benefit from the District improvements and services. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1972 Act and the provisions of the California Constitution and the District shall incorporate each parcel that will receive special benefits from those improvements.

The estimated cost of the improvements and the proposed annual assessments budgeted and assessed against properties within the District and each respective Zone may include, but are not limited to the estimated expenditures for regular annual maintenance and repairs; incidental expenditures related to the operation and administration of the District; the collection of funds for operational reserves or for periodic maintenance and improvement rehabilitation projects; deficits or surpluses from prior fiscal years; and revenues from other sources as authorized by the 1972 Act. Each parcel is to be assessed proportionately for only those improvements, services, and expenses for which the parcel will receive special benefit. Each fiscal year, the City shall establish the District’s assessments based on an estimate of the costs to maintain, operate and service the improvements for that fiscal year and available revenues including fund balances, general benefit contributions, any additional contributions from other revenue sources, and the assessment limits established for the District and Zones.

The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (“APN”) by the Santa Barbara County Assessor’s Office. The Santa Barbara County Auditor/Controller uses APNs and specific Fund Numbers to identify properties to be assessed on the tax roll for the District assessments.

At a noticed annual Public Hearing, the City Council will accept all public comments and written protests regarding the District and the annual levy of assessments. Based on those public comments and written protests, the City Council may order amendments to the Report or confirm the Report as submitted. Following final approval of the Report and confirmation of the assessments the Council will by Resolution, order the improvements to be made and confirm the assessment diagram and levy and collection of assessments for the fiscal year pursuant to the 1972 Act. The fiscal year 2026/2027 assessments as approved will be submitted to the Santa Barbara Auditor/Controller to be included on the property tax roll for each parcel.

As required by the 1972 Act, this Engineer’s Report outlines the plans and specifications for the improvements which describes the improvements to be provided, maintained and serviced by the District; an estimate of the costs of the improvements (budget); an assessment of the estimated costs of the improvements which outlines the proportional method of apportioning the estimated annual costs as well as the resulting proposed assessments to be levied upon each assessable lot or parcel within the District for fiscal year 2026/2027; and a diagram for the assessment district, which depicts the boundaries of the District and all parcels receiving special benefit.

If any section, subsection, sentence, clause, phrase, portion, zone, or subzone of this Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Report and each section, subsection, subdivision, sentence, clause, phrase, portion, zone, or subzone thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, portions, zones, or subzones might subsequently be declared invalid or unconstitutional.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

This Report consists of the following five (5) parts.

Part I — Plans and Specifications:

This section provides a general description of the District and the improvements for which parcels are assessed. The assessments outlined in this Report are based on the improvements and appurtenant facilities that provide special benefits to the properties within the District and generally consist of local parks, various landscaping improvements, street lighting, and related appurtenant facilities and operational expenses authorized pursuant to the 1972 Act. The plans and specifications contained in this Report generally describe the nature and extent of the improvements to be provided at build-out of the District, and specifically those improvements that have been installed and may be accepted and maintained for fiscal year 2026/2027. In conjunction with these general descriptions of the improvements, visual depictions of the landscaping and lighting improvements that have been installed and may be accepted for maintenance for fiscal year 2026/2027 as well as the overall improvements anticipated at buildout are provided in “Part V — Assessment Diagrams” of this Report. More detailed information regarding the specific plans and specifications associated with these improvements are on file in the Office of Public Works of the City of Guadalupe and by reference are made part of this Report.

Part II — Method of Apportionment
This section includes a discussion of the general and special benefits associated with the various improvements to be provided within the District (Benefit Analysis), which includes a discussion of the proportional costs of the special benefits and a separation of costs considered to be of general benefit (and therefore not assessed). This section of the Report also outlines the method of calculating each property’s proportional special benefit and resulting calculated annual assessment amount. This method of apportionment is consistent with the adopted method of apportionment for the District at the time the District was formed and approved by the property owners of record in a protest ballot proceeding conducted pursuant to the provisions of the California Constitution Article XIII D.

Part III — Estimate of Costs
This section establishes an estimate of the fiscal year 2026/2027 costs to operate, maintain, and service the local parks, landscaping, lighting, and appurtenant facilities that have been installed and may be accepted and maintained for the special benefit of properties within the District. The budget for the District and each Zone therein (including the various sub-zones) incorporates an estimate of the maintenance costs and incidental expenses including, but not limited to labor, materials, utilities, equipment, and administration expenses as well as the collection of other appropriate funding authorized by the 1972 Act and deemed necessary to fully support the improvements. Those improvements and/or costs determined to be of general benefit shall be funded by a City contribution and are excluded from the amount to be assessed as special benefit.

The resulting assessment rates (the “Assessment Per EBU”) identified in the budget for each Zone establishes the proposed assessments to be levied and collected for fiscal year 2026/2027.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Part IV — Assessment Roll
The assessment amounts to be levied and collected in fiscal year 2026/2027 for each parcel is based on the parcel’s calculated proportional special benefit as outlined in “Part II — Method of Apportionment” and the annual assessment rates established by the estimated budgets in “Part III — Estimate of Costs” of this Report. Due to the number of parcels within the District, the Assessment Roll for fiscal year 2026/2027 has been filed electronically with the City Clerk rather than displayed in this Report. The parcels and assessment amounts contained within the electronic Assessment Roll filed with the City Clerk represent the parcels and assessment amounts to be filed with the Santa Barbara County Auditor/Controller and collected on the County Tax Rolls for fiscal year 2026/2027. By reference the listing of the Assessor’s Parcel Numbers and the corresponding assessment amounts are made part of this Report.

Part V — District Diagrams
This section of the Report contains various diagram(s) that identify the parcels and improvements within the District including:
 District Diagram – Boundary and Zones, Fiscal Year 2026/2027  District Diagram – Development and Improvements, Planned at Buildout  District Diagram – Development and Improvements, Fiscal Year 2026/2027 The lines and dimensions of each lot, parcel, and subdivision of land contained in the “District Diagram – Boundary and Zones, Fiscal Year 2026/2027” is inclusive of all parcels identified in “Part IV – Assessment Roll” of this Report and the corresponding County Assessor’s Parcel Maps for said parcels as they existed at the time this Report was prepared and shall include all subsequent subdivisions, lot-line adjustments, or parcel changes therein. Reference is hereby made to the Santa Barbara County Assessor’s maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Part I — Plans and Specifications
Description of the District
The territory within the District consists of the lots or parcels of land within the planned nonresidential and residential development area identified in the DJ Farms Specific Plan and commonly referred to as the “Pasadera Development” which is located within the City of Guadalupe on the south side of Main Street near Obispo Street and Flower Avenue. According to the DJ Farms Specific Plan, at build-out, the District is anticipated to incorporate eight hundred and three (803) single-family residential home sites; approximately twenty-one (21.49) acres of non-residential development; a fourteen (14.37) acre school site; and various associated public areas, easements, and rights-of-way that are either part of the District improvements or otherwise considered to receive no special benefit from the improvements being provide. At the time this Report was prepared, the lots and parcels of land within the District are inclusive of the following parcels identified on the Santa Barbara County Assessor’s Parcel Maps as:
 Book 113, Page 01, Parcels 25 and 37;
 Book 113, Page 08, Parcels 34 through 37;
 Book 113, Page 45, Parcels 01 through 03, 06 through 08, and 10;  Book 113, Page 46, Parcels 01 through 57;
 Book 113, Page 47, Parcels 01 through 61;
 Book 113, Page 48, Parcels 01 through 41;
 Book 113, Page 49, Parcels 01 through 224; and
 Book 113, Page 50, Parcels 01 through 84.

The Pasadera Landscaping and Lighting District is located along the southern boundary of the City, and the properties immediately west, south, and east of these District parcels (excluding any streets or other rights-of-way) are currently outside City boundaries.

Zones of Benefit
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing various landscaping and lighting improvements, including the acquisition, construction, installation, maintenance, and servicing of those improvements and related facilities. In addition, to ensure an appropriate allocation of the estimated costs to provide various improvements based on proportional special benefits, landscaping, and lighting districts often times include benefit zones (“Zones”) as authorized pursuant to Chapter 1 Article 4, Section 22574 of the 1972 Act:
“The diagram and assessment may classify various areas within an assessment district into different zones where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements.

A zone shall consist of all territory which will receive substantially the same degree of benefit from the improvements.”
While the California Constitution requires that “The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement or the maintenance and operation expenses of a public improvement…”; it is reasonable to conclude that certain landscaping and/or lighting improvements may benefit the majority of the parcels within a district if not all properties, while other improvements may only provide special benefits to specific parcels, developments or portions of the district (particularly in Pasadera Landscaping and Lighting District
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larger districts). In addition, some improvements within a district and/or the costs associated with various public improvements are identified as providing some measure of general benefit and because these general benefit costs cannot be assessed, the overall cost of those improvements may be proportionately allocated as both special benefit and general benefit.

In accordance with the 1972 Act, it has been determined that it is appropriate and necessary to establish two overall benefit zones (Zones) within this District to be designated as Zone A and Zone B and sub-zones within Zone B (currently Sub-Zones B1, B2, and B3). The boundaries of each Zone and Sub-Zone is established based on the location, extent and types of improvements or similarities in the types of improvements being maintained through the District assessments as well as the particular and distinct benefits the various developments and properties derive from those improvements based on proximity to those specific improvements and the nexus between the development of the properties that required or facilitated the installation of those improvements. While some improvements may be specifically associated with specific development areas or parcels within the District, many improvements may reasonably be considered shared because the overall development of the properties in the area required or necessitated those improvements. In such cases, the special benefits and cost of providing such improvements are proportionately shared by parcels in each Zone.

The net annual cost to provide the improvements for each Zone and/or Sub-Zone are allocated to the benefiting properties within that Zone using a weighted method of apportionment (refer to Assessment Methodology in “Part II — Method of Apportionment”) that calculates the proportional special benefit and assessment for each parcel as compared to other properties that benefit from the District improvements and services. The following is a brief description and summary of the Zones and improvements associated within each Zone. A visual depiction of the location and extent of the improvements and Zone boundaries are provided in the District Diagrams provided in Part V of this Report.

Zone A Parcels and Improvements
Zone A Parcels
Zone A comprises that portion of the parcels within the District located on the south side of Main Street and north of Buena Vista Road. The properties in this Zone are primarily identified as nonresidential properties, but also incorporates a drainage basin and pump station in the northeast corner of the District for which the landscaping will be maintained by the District and proportionately shared by parcels in both Zone A and Zone B. Refer to the “District Diagram – Boundary and Zones, Fiscal Year 2026/2027” in “Part V — District Diagrams” of this Report for a visual depiction of the properties within Zone A. In that same section, the “District Diagram – Development and Improvements, Planned at Buildout” provides a visual depiction of the drainage basin location within Zone A.

Zone A Improvements
The parcels within Zone A will ultimately receive special benefits and will be proportionately assessed in whole or in part for improvements that include, but are not limited to the following:
 Shared Improvements (Improvements at buildout that may be proportionately shared by parcels in Zone A and Zone B)
o Street lights on Flower Avenue between Main Street and Buena Vista Road; o Street lights on Buena Vista Road adjacent to both Zone A and Zone B; o Street lights on Obispo Street between Main Street and Buena Vista Road; and o Landscaping improvements associated with the drainage basin site located at the northeast corner of the District.

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Engineer’s Report
Fiscal Year 2026/2027

 Zone Specific Improvements (Improvements at buildout that may be proportionately shared by parcels in Zone A only)
o Street lights on the south side of Main Street adjacent to Zone A.

Zone B Parcels and Improvements
Zone B Parcels
Zone B comprises that portion of the parcels within the District located south of Buena Vista Road.

The properties in this Zone are primarily identified as residential properties (single family residential parcels and planned residential developments), but also includes a public school site, various park and recreational areas, and various landscape improvements to be maintained by the District. Refer to the “District Diagram – Boundary and Zones, Fiscal Year 2026/2027” in “Part V — District Diagrams” of this Report for a visual depiction of the properties within Zone B. In that same section, the “District Diagram – Development and Improvements, Planned at Buildout” provides an overall visual depiction of the planned landscaping and lighting improvements throughout the District and Zone B.

Zone B Improvements
The parcels within Zone B will ultimately receive special benefits and will be proportionately assessed in whole or in part for improvements that include, but are not limited to the following:
 Shared Improvements (Improvements at buildout that may be proportionately shared by parcels in Zone A and Zone B)
o Street lights on Flower Avenue between Main Street and Buena Vista Road; o Street lights on Buena Vista Road located between Zone A and Zone B; o Street lights on Obispo Street between Main Street and Buena Vista Road; and o Landscaping improvements associated with the drainage basin site located at the northeast corner of the District.
 Zone Specific Improvements (Improvements at buildout that may be proportionately shared by parcels in Zone B only)
o Street lights on Obispo Street between Buena Vista Road and “C” Street, which is the end of Obispo Street (proportionately shared by parcels in Zone B only); o Remaining street lights (the estimated 194 street lights not identified above) within the planned residential developments;
o Landscaping improvements on both sides of Obispo Street between Buena Vista Road and “C” Street;
o Landscaping improvements on both sides of Del Mar Drive between Obispo Street and Fuente Drive;
o Landscaping improvements on the west side of Arroyo Seco Road between Buena Vista Road and Manzanita Street;
o Landscaping improvements on the west side of Arroyo Seco Road between the park site and the end of Arroyo Seco Road (cul-de-sac);
o Landscaping and trail improvements on the east side of Arroyo Seco Road between Buena Vista Road and the end of Arroyo Seco Road (cul-de-sac); o Landscaping improvements on the north side of “B” Street between “C” Street and “F10” Street;
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Fiscal Year 2026/2027

o Landscaping and trail improvements on the south side of “B” Street between “C” Street and “F10” Street;
o Landscaping and trail improvements on the east side of “F10” Street from “B” Street up to the end of the cu-de-sac on “F10” Street;
o Landscaping improvements on the east side of “C” Street between Obispo Street and “B” Street;
o Landscaping and trail improvements on the west side of “C” Street between “B” Street and “D5” Street;
o Paseo (pathway and landscaping) located between the homes on the southwest side of the intersection of “E2” Street and “E3” Street, connecting these streets with the park site near the northeast side of the railroad right-of-way adjacent to the park site; o Landscape buffer/trail on the northeast/east side of the railroad right-of-way extending from Buena Vista Road south to Obispo Street;
o Landscape buffer/trail on the southwest side of the railroad right-of-way between Obispo Street and the designated well-site located at the northern end of “D1” Street and the paseo (pathway and landscaping) connecting “D1” Street with the landscape buffer/trail area;
o Landscape buffer/trail on the southwest side of the railroad right-of-way between Obispo Street and “F10” Street and the paseo (pathway and landscaping) connecting “F1” Street and “F2” Street with the landscape buffer/trail area;
o Habitat Area on the south/southeast side of Obispo Street between the railroad rights-ofway and “A” Street and between “A” Street and “C” Street; o Natural/minimal-maintenance landscaping improvements at the water tank site located north of the cul-de-sac on “D1” Street, between the railroad rights-of-way and the western boundary of the District; and
o Park/recreational area improvements located within sixteen (16) planned parks and recreational areas located throughout the residential developments within the District boundaries.

Zone B Sub-Zones
Only a portion of the properties within the District have been fully subdivided and/or developed, and only a portion of the improvements have been installed. Therefore, for administrative purposes and to ensure an equitable apportionment of the annual maintenance and operation expenses, the residential development areas within the District identified as Zone B have been established and grouped into Sub-Zones to reflect the current and anticipated development of the properties and the installation of improvements within Zone B. The three (3) Sub-zones which are illustrated on the “District Diagram – Boundary and Zones, Fiscal Year 2026/2027” in “Part V — District Diagrams” of this Report are generally described in the following:

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Fiscal Year 2026/2027

 Sub-Zone B1 incorporates the residential developments that have already been subdivided into single family residential lots and are in proximity and associated with local parks, landscaping and/or street lighting improvements that are anticipated to be installed and maintained by the District for fiscal year 2026/2027. Based on available Santa Barbara County Assessor’s data and development within the District, for fiscal year 2026/2027, this Sub-Zone will incorporate four hundred forty-four (444) single family residential parcels and the parks and proposed improvement areas within Tract 29,061, Tract 29,062, and Tract 29,064. These parcels are identified on the Assessor’s Parcel Maps, Book 113, Pages 46, 47, 48, 49, and

50.  Sub-Zone B2 incorporates the planned development area generally located south of Manzanita Street, west of Arroyo Seco Road, east of Obispo Street, and northeast of the railroad right-of-way, which has not been subdivided and identified as part of Zone B1. The properties included in this Sub-Zone are currently identified by the County Assessor’s Office as Vacant property which has not been fully subdivided and/or developed. The parcels within this Sub-Zone are currently identified as Assessor’s Parcel Maps, Book 113, Page 45, Parcels 06 through 08.
 Sub-Zone B3 incorporates the planned residential development area within the District located southwest of the railroad right-of-way. The properties included in this Sub-Zone are currently identified by the County Assessor’s Office as Vacant property which has not been fully subdivided or developed. The parcels within this Sub-Zone are currently identified Assessor’s Parcel Maps, Book 113, Page 01, Parcels 25 and 37; and Book 113, Page 08, Parcels 34 through 37.

Application of Sub-Zones in Zone B
By utilizing a Zone and Sub-Zone structure, comparable properties with similar types of improvements will be assessed a proportional amount for the total annual expenses related to the maintenance, operation and servicing of the improvements provided by the District and for which the properties receive special benefits. The use of Sub-Zones allows for each development and the parcels therein to be assessed for the improvements provided as development occurs and/or improvements are installed.

For purposes of establishing the annual assessments for Zone B, the parcels are assigned a proportional benefit and land use designation that reflects the current development of each property and relationship (proximity) to the improvements to be provided and maintained. For the calculation of the fiscal year 2026/2027 annual assessments:
 Parcels in Sub-Zone B1 are identified as fully subdivided single family residential parcels (with and without structures) and some parcels identified as Exempt Properties within Tract 29,061, Tract 29,062, and Tract 29,064 for which the District anticipates maintaining all or a portion of the improvements installed in connection with these subdivisions. The parcels that comprise Tract 29,062 and Tract 29,064 were not subdivided when the District was formed and were included in Sub-Zone B2 at that time. In fiscal year 2019/2020 Tract 29,062 became fully subdivided residential lots and the Sub-Zone designation for the associated parcels was changed from B2 to B1. For fiscal year 2022/2023 Tract 29,064 became fully subdivided residential lots and the Sub-Zone designation for the associated parcels changed from B2 to B1.
 Parcels in Sub-Zone B2 and Sub-Zone B3 are identified as either Vacant Undeveloped Property, Undeveloped Residential Property, or Exempt Property and assessed in accordance with the method of apportionment described in “Part II — Method of Apportionment” of this Report. However, in future fiscal years as these parcels are subdivided or developed, and/or as additional improvements for Zone B are accepted for maintenance, Pasadera Landscaping and Lighting District
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at the discretion of the Assessment Engineer and/or City Engineer, the land use designation or Sub-Zone designation for the affected properties may be reclassified.

Description of the District Improvements
As authorized by the 1972 Act, the improvements to be provided by the District and associated with each Zone therein incorporate local street lighting, parks, and various landscaping improvements that are to be maintained and serviced for the benefit of real property within the District. The various improvements to be maintained by the District have been or will be installed in direct connection with the development of properties for the benefit of those properties and are considered necessary for the development of those properties to their full and best use. The work to be performed within the District may include, but is not limited to (as applicable), the personnel; materials; equipment; electricity; water; contract services; repair and rehabilitation of the improvements; and incidental expenses required to operate the District and provide the improvements and services. The annual assessments to be levied on properties within the District provide a source of funding to support the continued operation and maintenance of these improvements that provide a particular and distinct benefit (special benefit) to those properties.

Each parcel shall be assessed proportionately for only those improvements, services, and expenses for which the parcel receives a special benefit. The improvement plans and specifications for the District are on file in the Office of Public Works of the City of Guadalupe and by reference these plans and specifications are made part of this Report. The District improvements anticipated to be installed and constructed at build-out generally include but are not limited to:

Proposed Improvements at Build-out
Landscape Improvements
The landscape improvements to be funded by the District assessments may include, but are not limited to, turf, ground cover, shrubs and plants; areas of natural vegetation; trees; irrigation and drainage systems; masonry walls, retaining walls, or other fencing; monuments; hardscapes; concrete or decomposed granite trail/pathways; and other related appurtenant facilities within the District that will be dedicated to the City for maintenance or which the City has an easement to maintain such improvements including but are not limited to:
 Designated parkway side-panels adjacent to the streets and properties within the District, including parkways, entryways, and trails;
 Various non-street landscaping and/or vegetation management areas including a drainage basin, dedicated Habitat/Open Space areas, a water tank site, and buffer/greenbelt/trail areas along the railroad right-of way; and
 The planned local park sites and/or recreational areas within the District.

The following provides a summary description of the landscape improvements anticipated to be constructed as part of the development of properties within the District and ultimately maintained through the District at build-out. For reference purposes, in conjunction with these descriptions of the improvements, a visual depiction of the landscape improvement areas is provided in the diagrams contained in Part V of this Report. At build-out, it is anticipated that the District’s landscape improvements will generally include, but is not limited to approximately:
 Obispo Street
o 41,785 square feet of irrigated landscape improvements, located on both sides of Obispo Street between Buena Vista Road and the railroad rights-of-way.

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Engineer’s Report
Fiscal Year 2026/2027

o 20,465 square feet of irrigated landscape improvements, located on both sides of Obispo Street between the railroad rights-of-way and “C” Street.  Del Mar Drive
o 5,190 square feet of irrigated landscape improvements, located on both sides of Del Mar Drive between Obispo Street and Fuente Drive.
 Arroyo Seco Road
o 68,660 square feet of maintained improvements, located on the east side of Arroyo Seco Road between Buena Vista Road and the end of Arroyo Seco Road (cul-de-sac). These maintained improvements incorporate 45,700 square feet of irrigated landscaping and 22,960 square feet of trail/pathway improvements.
o 4,720 square feet of irrigated landscape improvements, located on the west side of Arroyo Seco Road between Buena Vista Road and Manzanita Street. o 3,195 square feet of irrigated landscape improvements, located on the west side of Arroyo Seco Road between the southern end of the park site (just north of “E1” Street) and the end of Arroyo Seco Road (cul-de-sac).
 “B” Street
o 33,625 square feet of irrigated landscape improvements, located on the north side of “B” Street between “C” Street and “F10” Street.
o 60,495 square feet of maintained improvements, located on the south side of “B” Street between “C” Street and “F10” Street. These maintained improvements incorporate 40,345 square feet of irrigated landscaping and 20,150 square feet of trail/pathway improvements.  “F10” Street
o 6,815 square feet of maintained improvements, located on the east side of “F10” Street from “B” Street up to the end of the cu-de-sac on “F10” Street. These maintained improvements incorporate 4,830 square feet of irrigated landscaping and 1,985 square feet of trail/pathway improvements.
 “C” Street
o 8,045 square feet of irrigated landscape improvements, located on the east side of “C” Street between Obispo Street and “B” Street.
o 33,350 square feet of maintained improvements, located on the west side of “C” Street between “B” Street and “D5” Street. These maintained improvements incorporate 24,930 square feet of irrigated landscaping and 8,420 square feet of trail/pathway improvements.  Non-Streetscape Areas
o 2,275 square feet of non-streetscape trail/pathway improvements, located between the homes on the southwest side of the intersection of “E2” Street and “E3” Street, connecting these streets with the park site near the northeast side of the railroad right-of-way adjacent to the park.
o 22,850 square feet of improvement area (landscape buffer/trail), located on the northeast/east side of the railroad right-of-way behind the homes on the west and southwest side of Las Flores Drive extending from Buena Vista Road south to Obispo Street. It is anticipated that much of this improvement area will be irrigated landscaping, but all or a portion of the area may ultimately be installed with minimal/modified irrigation or no irrigation.

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Engineer’s Report
Fiscal Year 2026/2027

o 15,775 square feet of improvement area (landscape buffer/trail), located on the southwest side of the railroad right-of-way behind the homes on the northeast side of “D1” Street between Obispo Street and the designated well-site located at the northern end of “D1” Street. This square footage includes the estimated 2,145 square feet of paseo (pathway) connecting “D1” Street with the landscape buffer/trail area. It is anticipated that much of this improvement area will be irrigated landscaping, but all or a portion of the area may ultimately be installed with minimal/modified irrigation or no irrigation. o 39,435 square feet of improvement area (landscape buffer/trail), located on the southwest side of the railroad right-of-way behind the homes on the northeast side of “F1” Street and at the cul-de-sacs of “F9” Street and “F10” Street, between Obispo Street and “F10” Street.

This square footage includes the estimated 2,205 square feet of paseo (pathway) connecting “F1” Street and “F2” Street with this landscape buffer/trail area. It is anticipated that much of this improvement area will be irrigated landscaping, but all or a portion of the area may ultimately be installed with minimal/modified irrigation or no irrigation. o 280,770 square feet of natural/minimal maintenance landscape improvements (Habitat Area), located on the south/southeast side of Obispo Street between the railroad rightsof-way and “A” Street and between “A” Street and “C” Street. o 37,245 square feet of natural/minimal maintenance landscape improvements (open space water tank site), located north of the cul-de-sac on “D1” Street, between the railroad rightsof-way and the western boundary of the District. o 67,385 square feet of maintained improvements (open space drainage basin site), located at the northeast corner of the Zone, east of Flower Avenue between Main Street and Buena Vista Road. These maintained improvements incorporate 30,840 square feet of irrigated landscaping and 36,545 square feet of non-irrigated natural/minimalmaintenance landscaped area.  Parks
o 660,895 square feet of park and recreational area improvements, located within sixteen (16) planned park sites, paseos, or recreational areas located throughout the residential development area within the District boundaries. While it is anticipated that much of this improvement area will be irrigated landscaping (mostly turf), this overall square footage also incorporates the non-landscaped areas within the parks including play areas, sports courts, sidewalks, and other hardscape areas, but does not include any parking areas associated with these park/recreational areas.

Park Facilities
In addition to the landscape improvements within the park/recreational areas, the improvements and facilities to be funded may include, but are not limited to maintenance and servicing of the sports courts and fields; playground equipment and structures; sidewalks; ornamental or safety lighting; benches; trash receptacles; drinking fountains; picnic facilities; and any other equipment, structures or facilities related to the foregoing.

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Engineer’s Report
Fiscal Year 2026/2027

Lighting Improvements
Lighting improvements to be funded by the District assessments may include, but are not limited to, electrical energy, lighting fixtures, poles, meters, conduits, electrical cable, and appurtenant facilities associated with the street lights, traffic signals, and lighting within public areas within the District. Maintenance, operation, and servicing of these lighting improvements may include, but is not limited to the furnishing of electric current or other illuminating agent as needed; the maintenance, repair, and replacement of worn out electrical components and light fixtures, including bulbs, ballasts, photoelectric cells, meters, and electrical cables; repair or replacement of damaged poles, ground wires, and conduits caused by accidents, vandalism, time, and weather; and monitoring of the Underground Service Alert (USA) network to prevent damage by excavation. At build-out, it is anticipated that the District’s lighting improvements will generally include, but are not limited to:
 Thirteen (13) street lights located on the south side of Main Street adjacent to the proposed non-residential development area within the District;
 Two (2) street lights on Flower Avenue between Main Street and Buena Vista Road;  Fourteen (14) street lights on the north side of Buena Vista Road which is between the proposed residential developments and the proposed non-residential development area;  Twenty (20) street lights on Obispo Street;
o Five (5) street lights located between Main Street and Buena Vista Road; o Ten (10) street lights located between Buena Vista Road and the railroad right-of-way; o Five (5) street lights located between the railroad right-of-way and “C” Street;  One hundred ninety-four (194) street lights within the planned residential developments;  The safety/security lights, recreational lights (fields and courts) and/or ornamental lighting associated with the park/recreational areas; and
 Any other public lighting facilities including future traffic signals that may be deemed necessary or desired for the safe ingress or egress to the properties within the District.

Excluded Improvements
Improvements that are not a part of the District improvements include privately owned street lights and landscaping improvements located on private property and/or areas designated as Homeowner Association or Business Association properties or easements. Such improvements and facilities, including street trees, shall be provided and maintained by the individual property owners, property management group or association established in connection with the development of properties within the District.

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Engineer’s Report
Fiscal Year 2026/2027

Fiscal Year 2026/2027 Improvements
The following improvements are currently maintained or installed by the developer and may be accepted by the City for maintenance during fiscal year 2026/2027 and may be funded in whole or in part by the annual assessments:

Improvements Allocated to All Benefiting Properties
The following improvements provide special benefits and are proportionately shared and allocated to all properties within the District:
 Five (5) street lights on Obispo Street between Main Street and Buena Vista Road.

Improvements Allocated to All Properties in Zone B Only The following improvements provide special benefits and are proportionately shared and allocated to all properties within Zone B (Sub-Zones B1, B2, and B3):
 Approximately 36,335 square feet of irrigated landscape improvements, located on both sides of Obispo Street between Buena Vista Road and Manzanita Street. This is approximately 75% of the 41,785 square feet of planned irrigated landscape improvements located on both sides of Obispo Street between Buena Vista Road and the railroad rights-of-way; and  Six (6) street lights on Obispo Street between Buena Vista Road and Manzanita Street.

Improvements Allocated to Properties in Zone A and Sub-Zone B1 The following improvements provide special benefits and are proportionately shared and allocated to the properties within Zone A as well as those properties within Sub-Zone B1:
 Fourteen (14) street lights on Buena Vista Road which are situated between the residential developments of Zone B1 and the planned non-residential development properties in Zone A. o Five (5) street lights on Buena Vista Road, west of Obispo Street (between Obispo Street and Las Flores Drive); and
o Nine (9) street lights on Buena Vista Road, east of Obispo Street (between Obispo Street and Arroyo Seco Road).

Improvements Allocated to Properties in Sub-Zone B1 and Sub-Zone B2 The following improvements provide special benefits and are proportionately shared and allocated to the properties within Sub-Zone B1 as well as those properties within Sub-Zone B2:
 Approximately 20,600 square feet of landscaping improvements located on the east side of Arroyo Seco Road between Buena Vista Road and Manzanita Street (13,710 square feet of irrigated landscaping and 6,890 square feet of trail/pathway improvements) are currently being maintained. An additional 41,195 square feet of landscaping improvements on the east side of Arroyo Seco Road between Manzanita Street and Guerrero Drive (27,420 square feet of irrigated landscaping and 13,775 square feet of trail/pathway improvements) has been installed and may be accepted for maintenance by the end of the fiscal year. Collectively, these 61,795 square feet of improvements represent approximately 90% of the 68,660 square feet of planned improvements for the east side of Arroyo Seco Road between Buena Vista Road and the end of Arroyo Seco Road at the railroad right-of-way.  Twelve (12) street lights that are adjacent to and benefit both properties in Sub-Zone B1 (Tracts 29,062 and 29,064) and Sub-Zone B2 parcels (school and community park sites):
o Six (6) street lights located on Manzanita Street between Obispo Street and Arroyo Seco Road, adjacent to Tract 29,062 (Sub-Zone B1) and the future school site (Sub-Zone B2).

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Engineer’s Report
Fiscal Year 2026/2027

o Six (6) street lights on Arroyo Seco Road between Buena Vista Road and Manzanita Street adjacent to Tract 29,062. These six (6) streets lights are a portion of the eighteen (18) total planned street lights on Arroyo Seco.

Improvements Allocated to Properties in Sub-Zone B1 Only The following improvements provide special benefits and are proportionately shared and allocated to all the residential properties within Zone B1 only:
 Approximately 5,190 square feet of irrigated landscape improvements, located on both sides of Del Mar Drive between Obispo Street and Fuente Drive (entryway to Tract 29,061).  Approximately 4,720 square feet of irrigated landscaping improvements, located on the west side of Arroyo Seco Road between Buena Vista Road and Manzanita Street.  Approximately 46,905 square feet of park and recreational area improvements, located within the two (2) neighborhood park sites and recreational areas located within Tract 29,061. The majority of the site improvements incorporate irrigated landscaping (mostly turf), but this overall square footage also includes some non-landscaped areas including play areas, sports courts, sidewalks, and other hardscape areas.
 Approximately 53,145 square feet of park and recreational area improvements, located within the seven (7) neighborhood park sites or recreational areas located within Tract 29,062. The majority of the site improvements incorporate irrigated landscaping (mostly turf), but this overall square footage also includes some non-landscaped areas including play areas, sports courts, sidewalks, and other hardscape areas.
 Approximately 23,085 square feet of park and recreational area improvements, located within the neighborhood park sites, basins, and/or recreational areas located within Tract 29,064.

The majority of the site improvements incorporate irrigated landscaping (mostly turf), but this overall square footage also includes some non-landscaped areas including play areas, sports courts, sidewalks, and other hardscape areas.
 Sixty-five (65) street lights within Sub- Zone B1 residential development areas, including:
o Twenty-five (25) street lights within Tract 29,061, located on Fuente Drives, Castillo Drive, Las Flores Drive, Del Mar Drive, Esperanza Drive, and Gusto Court. o Forty (40) street lights within Tract 29,062 including lights located on Ninos Drive, Hacienda Drive, La Joya Drive, Jalama Drive, Ladera Drive, and Lazo Drive.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Part II — Method of Apportionment
Legislative Authority and Provisions
1972 Act
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, including the acquisition, construction, installation and servicing of landscaping and lighting improvements and related facilities. The 1972 Act requires that the cost of these improvements be levied according to benefit rather than assessed value:

Section 22573 defines the net amount to be assessed as follows:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
Section 22574 provides for zones as follows:
“The diagram and assessment may classify various areas within an assessment district into different zones where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements.

A zone shall consist of all territory which will receive substantially the same degree of benefit from the improvements.”
The formulas used for calculating assessments and the designation of Zones and Sub-Zones as established herein reflect the composition of parcels within the District and the improvements and activities to be provided, and have been designed to fairly apportion the cost of providing those improvements based on a determination of the proportional special benefits to each parcel, consistent with the requirements of the 1972 Act and the provisions of Article XIII D of the California Constitution (Proposition 218).

California Constitution
The costs to operate and maintain the District improvements are identified and allocated to properties within each Zone and/or Sub-Zone within the District based on special benefit. The improvements provided and for which properties are to be assessed are identified as local landscaping and lighting improvements and related amenities that were installed in connection with the development of the properties and/or would otherwise be required for the development of properties within each respective Zone and/or Sub-Zone. The District assessments and method of apportionment are based on the premise that these improvements would otherwise not have been required without the development or planned development of those parcels.

Article XIII D Section 2d defines District as follows:
“District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service,” Article XIII D Section 2i defines Special Benefit as follows:
“Special benefit” means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit.”
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Article XIII D Section 4a defines Proportional Special Benefit Assessments as follows:
“An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Benefit Analysis
The improvements provided by this District and for which properties will be assessed have been identified as necessary, desired and/or required for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City’s General Plan.

Special Benefits
The ongoing maintenance of landscaped areas within the District will provide aesthetic benefits to the properties within the District and each respective Zone and/or Sub-Zone therein and are intended to provide a more pleasant environment to walk, drive, live, and work. The primary function of these improvements and related amenities is to serve as an aesthetically pleasing enhancement and green space for the benefit of the immediately surrounding properties and developments for which the improvements are constructed and installed and/or are facilitated by the development or potential development of properties within the District. These improvements are an integral part of the physical environment associated with the parcels in the District and while some of these improvements may in part be visible to properties outside the District and/or the respective Zones and Sub-Zones, collectively if these improvements are not properly maintained, it is the parcels within the District and/or the respective Zones and Sub-Zones that would be aesthetically burdened. Additionally, many of the landscape improvements include parks, green spaces, and trails that provide visually pleasing open space areas that serve as an extension of the physical attributes of the parcels assessed, such as their front or rear yards and may also provide a greater opportunity for recreation as well as serving as a physical buffer and/or sound reduction buffer between the roadways and the properties in the District. Thus, the maintenance of these landscape improvements provides particular and distinct benefits to the properties and developments associated with those improvements.

Likewise, street lighting in the District is primarily useful for illuminating the streets that provide access to the properties in the District as well as the sidewalks and parking lanes associated with those properties. While it is recognized that street lights and traffic signals serve in part to enhance traffic safety, installation and construction of these improvements are for the most part, required by the development of properties within the district and these improvements provide three main special benefits to those properties: (i) property security benefit, (ii) pedestrian safety benefit, and (iii) parkway/roadway access benefit. Furthermore, because traffic circulation in the City is largely the result of local traffic to and from these properties by the property owners and guests, it is reasonable to assume that these properties derive a particular and distinct benefit from the street lighting that support the safe access to the properties and essentially all pedestrians and parking vehicles in the lit areas will, after dark, be directly associated with the assessed properties. As a result, the maintenance of these lighting improvements is a particular and distinct benefit to the properties and developments within the District and the Zones and Sub-Zones therein.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Collectively these landscaping and lighting improvements and related assessments enhance the security, overall use, presentation, and marketability of the properties, and ensure the long-term cost-efficiency of services that is obtained through the City provided maintenance (economy of scale), and the regulatory restrictions on future cost increases.

General Benefit
Landscaping General Benefit
In reviewing the location and extent of the specific landscaped areas and improvements to be funded by District assessments and the proximity and relationship to properties to be assessed, it is evident these improvements have been or will be installed as part of the development of properties within the District or are improvements that would otherwise be shared by and required for development of those properties. Although the District improvements are located on public streets or public areas that are typically visible and/or accessible to the general public, it is evident that the ongoing maintenance of these improvements are only necessary for the appearance and advantage of the properties within the District that are directly associated with those improvements and these improvements (particularly the level of maintenance and servicing) are not required nor necessarily desired by any properties outside the District and/or the respective Zones and/or Sub-Zones associated with those various improvements. It is also evident that the maintenance these improvements and the level of maintenance provided has a direct and particular impact (special benefit) only on those properties in proximity to those improvements and such maintenance beyond that which is required to ensure the safety and protection of the general public and property in general, has limited (if any) indirect or incidental benefit to the public at large or properties outside each respective Zone.

In the absence of a special funding Zone, the City’s maintenance of these improvements would for the most part, be limited to tree management, weed abatement, rodent control, and erosion control services for the various landscape areas. This basic or baseline level of service would typically provide for periodic servicing of these areas on an as-needed basis. This baseline level of service would provide for public safety and essential property protection to avoid negative impacts on adjacent roadways and vehicles traveling on those roadways and potential property damage, but results in a far less visually pleasing environment than is created with the enhanced levels of services associated with the regular landscape maintenance that can be provided through the District assessments.

On average, the cost to provide this baseline level of service for the District’s planned landscape areas is estimated to be approximately $0.012626 per square foot (approximately $550 per acre) which includes a five percent (5%) cost factor for City overhead and administration. This baseline service cost per square foot represents approximately five percent (5%) of the overall cost per square foot for the annual operation and maintenance of the landscape areas.

Other Landscaping General Benefits
In addition to the general benefit identified above, it is recognized that there are indirect or incidental general benefits to properties within the District as well as the general public that are associated with regular landscape maintenance services, including:
 Minimization of dust and debris; and
 Decreased potential water runoff from both properties and the landscaped areas.

Although these types of benefits might best be characterized as indirect consequences of the special benefit of the landscape maintenance provided to parcels served by the District, for the purposes of calculating proportional benefits, we assume these types of benefits to be general Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

benefits, albeit general benefits that are extremely difficult to quantify. We estimate that the costs associated with these indirect benefits do not exceed one percent (1%) of the annual maintenance expenditure for the landscaping improvements.

The baseline general benefit costs and the indirect/incidental general benefit costs identified above shall be excluded from the special benefit assessment funding and not assessed to the parcels within the District. The total calculated general benefit cost for the landscaping improvements associated with each Zone and/or Sub-Zone is summarized in the table at the end of this section and is also identified in the budgets contained in Part III of this Report.

Lighting General Benefit
In reviewing the location and extent of the specific lighting improvements to be funded by District assessments and the proximity and relationship to properties to be assessed, like the landscaping improvements it is evident these improvements are being installed as a direct result of the development of the properties within the District or are lighting improvements that would otherwise be shared by and required for the development of those properties. It is also evident that the maintenance and servicing of these improvements has a direct and particular impact (special benefit) on those properties in proximity to those street lighting improvements and these street lighting improvements are for the most part, lighting improvements that exceed what would otherwise be required for traffic circulation or to ensure the safety and protection of the general public and property in general.

Because these District lighting improvements are directly associated with the development or anticipated development of the properties within each respective District Zone and clearly provide a special benefit to those properties that is not shared by all properties in the City, it is certainly reasonable to conclude that the maintenance and operation of these improvements is largely, if not entirely, a special benefit to those properties to be assessed. Based on the special benefits previously identified for street lights, it is apparent that within residential developments (Zone B, which is comprised initially as Sub-Zones B1, B2, and B3), the internal residential development street lights are installed solely for the use and benefit of those residential properties and there is no quantifiable general benefit to other properties or to the public at large.

In addition to the internal residential street lights within the various developments in Zone B, the properties in Zone B (both the residential parcels and the school site) are accessed from and/or are adjacent to Obispo Street and/or Flower Avenue and Buena Vista Road and the street lights on these secondary/collector streets are collectively and proportionately shared by the properties in Zone B as well as the non-residential properties in Zone A which are adjacent to these streets and associated street lights. Collectively, these secondary/collector street lights represent approximately fifteen percent (15%) of the total street lights to be installed within the District. While these secondary/collector lights are clearly the result of the development of properties within the District, it is also reasonable to conclude that these types of streets are often accessed by the general public (possibly in route to the school or parks) and to some extent the street lighting on these streets may also enhance general nighttime traffic safety and circulation for other properties and the public at large. Based on various traffic circulation studies and related data, it is estimated that less than forty percent (40%) of these secondary/collector street lights would be required for similar streets in less concentrated development areas. Therefore, it has been determined that the general benefit related to the overall operation and maintenance of these shared street lights is no more than six percent (6%) of the street light operating costs for these particular street lights.

However, to ensure that no parcel is assessed for more than its proportional special benefit for these shared street lights, the City will contribute for general benefit an amount equal to ten percent (10%) of the budgeted regular annual maintenance expenditures (maintenance and energy costs). These general benefit costs shall be excluded from the special benefit assessment funding and not assessed to the parcels within the District.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

In addition to the internal residential street lights and secondary/collector street lights discussed above, the non-residential properties within Zone A will directly benefit from the street lights to be installed on Main Street (a primary/arterial street) adjacent to those properties. Similar to the lights on secondary/collector streets, it is certainly reasonable to recognize that the street lights on this primary/arterial street provide a measure of general benefit to the public and to properties in general resulting from nighttime traffic safety and circulation. The American National Standard Practice for Roadway Lighting and various related traffic and street lighting studies suggest that over ninety percent (90%) of the street lights installed on primary/arterial streets in urban areas are directly the result of property development (both residential and non-residential development).

In turn these developments increase traffic circulation and ultimately dictate the type of lighting, spacing and number of lights required and without such development, both the need and quantity of those lights would be dramatically reduced, which is reflected by the limited lighting that currently exists in this area on Main Street. Therefore, like the secondary/collector street lights associated with this District, it has been determined that the general benefit related to the operation and maintenance of the street lights on Main Street is ten percent (10%) of the regular annual maintenance expenditures (maintenance and energy costs). These general benefit costs shall be excluded from the special benefit assessment funding and not assessed to the parcels within Zone A of the District.

Utilizing the general benefit service costs outlined above and the improvements proposed at buildout, the following table summarizes the estimated general benefit costs calculated for each Zone and Sub-Zone within District:

Estimated General Benefit for Street Lighting, Landscaping, and Parks (1) As with most maintenance costs, the General Benefit Costs shown above have been adjusted for inflation and in subsequent fiscal years the General Benefit Cost will likely continue to be impacted and adjusted for inflation.

Zone A ($24) $0 ($24)
Sub-Zone B1 ($972) ($5,696) ($6,668)
Sub-Zone B2 ($7) ($28) ($35)
Sub-Zone B3 ($14) ($70) ($84)
Zone B Zone B Total ($992) ($5,795) ($6,786)
Total General Benefit ($1,015) ($5,795) ($6,810)
Zone Street Lighting
Landscaping
and Parks Total (1)
General Benefit General Benefit General Benefit
Sub-Zone
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Assessment Methodology
To calculate and identify the proportional special benefit received by each parcel and ultimately each parcel’s proportionate share of the improvement costs it is necessary to consider not only the improvements and services to be provided, but the relationship each parcel has to those improvements as compared to other parcels in the District.

Article XIII D Section 4a reads in part:
“…The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement or the maintenance and operation expenses of a public improvement or for the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Landscaping and lighting improvements like most public improvements provide varying degrees of benefit (whether they be general or special) based largely on the extent of such improvements, and the location of the improvements in relationship to properties associated with those improvements. To establish the proportional special benefit and ultimately the assessment obligation for each parcel, these factors need to be addressed and formulated in the method of apportionment by the use of benefit zones that reflect the extent and location of the improvements in relationship to the properties, as well as the specific use of the property and characteristics that reflects each parcel’s proportional special benefit as compared to other properties that benefit from those same improvements.

The method of apportionment (method of assessment) developed for this District is based on the premise that each property to be assessed receives a particular and distinct benefit (special benefit) from the improvements, services and facilities to be financed by the District assessments and to assess benefits equitably it is necessary to calculate each property’s relative share of the special benefits conferred by the funded improvements and service. The Equivalent Benefit Unit (EBU) method of assessment apportionment is utilized in this District and establishes a basic unit of benefit (base value) and then calculates the benefit derived by each assessed parcel as a multiple (or a fraction) of that basic unit. This EBU method of apportioning special benefits is typically seen as the most appropriate and equitable assessment methodology for districts formed under the 1972 Act, as the benefit to each parcel from the improvements are apportioned as a function of comparable property characteristics The base value and assessment formula utilized in each Zone may be different, but is established for each Zone to reflect the improvements and properties that benefit from those improvements utilizing property characteristics that may include but is not limited to the type of development (property land use), property’s development status, and size of the property (acreage or units).

For the purposes of this Engineer’s Report, EBU is the quantum of benefit derived from the various Zone improvements by a single family residential parcel. The single family residential parcel has been selected as the basic value for calculation of assessments since at build-out this land use will represent over ninety-eight percent (98%) of the parcels in the District and over seventy percent (70%) of the total acreage developed. Thus, the “benchmark” property (the single family residential parcel) derives one (1) EBU of benefit and is assigned 1.00 Equivalent Benefit Unit.

The following outlines the land use classifications that are associated with or may be associated with the parcels in the District and the proportional Equivalent Benefit Units established for those land use classifications.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Land Use Classifications
Single-Family Residential – This land use classification is defined as a fully subdivided residential home site with or without a structure. This land use may include, but is not limited to subdivided residential tract lots, condominiums, or other individual residential units or subdivided lots assigned an Assessor’s Parcel Number. As previously noted, the single family residential parcel has been selected as the basic value for calculation of assessments and each is assigned

1.00 Equivalent Benefit Unit.

Multi-Family Residential – This land use classification is defined as properties that are primarily used for residential purposes, but contain more than a single residential unit on the parcel (parcels with more than one dwelling) including apartments, duplexes, or other multi-unit structures. Due in part to the development and population densities associated with these types of dwelling units (reduced unit size compared to the typical density and size of single-family properties), studies have consistently shown that the average apartment unit impacts infrastructure approximately eighty percent (80%) as much as a single-family residence. (Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition, 1991; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition, 1991.) Therefore, it is reasonable to conclude that the proportional special benefit these properties receive from the public improvements funded by the District assessments has a similar proportionality and these parcels shall be assigned a weighted proportional special benefit of 0.80 EBU per unit.

Developed Non-Residential – This land use is defined as a parcel and/or development (group of parcels) that has been developed primarily with a non-residential use including, but not limited to (both publicly owned and privately owned) commercial retail or service, office or professional service, hotel or motel, manufacturing, warehousing, parking lot, and/or institutional facilities including hospitals or other medical facilities, private schools or education centers, churches or other non-profit organizations. Based on the planned residential development within this District, it has been determined that these planned single-family residential developments will yield approximately five (5) dwelling units per acre of land. The actual residential development density is 5.43 units per acre. Therefore, since the single family residential parcel (the base value for calculation of assessments) is assigned 1.0 Equivalent Benefit Unit it is reasonable and appropriate to assign the developed non-residential properties a weighted special benefit that reflects a similar and proportional development density. Therefore, the EBU assigned to each developed non-residential property is established by multiplying the parcel’s applied acreage by

5.0 EBU per acre (e.g., a developed non-residential parcel of 4.25 acres would be assigned 21.25 EBU, 4.25 acres x 5.0 EBU/acre = 21.25 EBU).

Public School Property – This classification includes the parcel currently identified specifically as a public school site. On average, approximately 1/3rd (33.33%) of the total school site acreage is developed with structures and parking facilities, which is similar to what is commonly associated with non-residential developments. The remaining parcel acreage (approximately 66.67%) is generally playground areas and/or sports fields which is similar to the District’s park improvements. Recognizing the overall development of this parcel as compared to other properties in the District and the improvements in proximity to this property, it has been determined that the proportional special benefit EBU calculated for this parcel is accurately reflected by treating that portion of the parcel with structures and parking facilities (1/3rd of the parcel’s acreage) similar to the EBU calculated for Developed Non-Residential properties (33.33% of acreage x 5.0 EBU/acre), with the remaining 2/3rd of the parcel’s acreage being excluded (treated similar to the District’s park facility, although this area is not part of the improvements being maintained by the District). Therefore, this 14.37 acre school site parcel shall be assigned 11.98 EBU for balloting purposes to establish the property’s maximum assessment Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

and proportional special benefit ([14.37 acres x 33.33% = 4.79 applied acre]; x 5.00 EBU/acre =

11.98 EBU).

However, for calculation of the annual assessments each fiscal year, the Assessment Engineer shall apply to this parcel an EBU that best reflects the property’s development status and proportional special benefit from the exiting improvements and/or new improvements to be installed and accepted during the fiscal year. The Assessment Engineer may treat the parcel as a Vacant Undeveloped Property (assigned 1.00 EBU per acre or 4.79 EBU) or any proportional EBU up to the parcel’s maximum EBU described above (11.98 EBU).

Based on the current development of this property and the location and timing of the improvements to be accepted by the City for maintenance, this parcel shall be assigned a weighted special benefit per applied acre applicable to Vacant Undeveloped Property.

Planned Residential Development – This land use classification is defined as a parcel or group of parcels that may currently be identified as vacant undeveloped property or undeveloped residential property, zoned for residential use, and the number of residential units to be developed on the property has been determined or identified as part of a Tentative Development Plan, Tentative Tract Map or Specific Plan.

For balloting purposes to establish each property’s maximum assessment and proportional special benefit, these parcels were assigned an EBU that reflected the total EBU’s planned for that parcel at build-out (1.00 EBU per single-family residential lot and 0.80 per multi-family residential unit).

However, for calculation of the annual assessments each fiscal year, the Assessment Engineer shall apply to such parcels an EBU that best reflects that parcel’s proportional special benefit from the improvements and services provided as compared to other properties in the District, Zone and Sub-Zone based on the type and location of the improvements to be maintained, the proximity of the property to those improvements, and the development status of the property. Because these factors can vary from year to year and from parcel to parcel, the calculated EBU for each parcel originally balloted as a Planned Residential Development parcel may be different utilizing either the acreage of the parcel or number of planned units. The Assessment Engineer may identify the parcel and treat the parcel as a Vacant Undeveloped Property (assigned 1.00 EBU per applied acre up to a maximum of 5.0 EBU); as an Undeveloped Residential Property (assigned 1.00 EBU per acre for the parcel’s total acreage); or may temporarily identify the parcels as a Special Case Parcel (refer to this land use classification below) assigning the parcel any proportional EBU up to the maximum EBU for which the property was ballot (1.0 EBU per singlefamily residential lot and 0.80 per multi-family residential unit).

Based on the development of properties within the District (specifically in Zone B) and the location and timing of the improvements to be accepted by the City for maintenance, the parcels initially identified as Planned Residential Development properties have each be assigned a weighted special benefit per acre applicable to either Vacant Undeveloped Property or Undeveloped Residential Property.

Planned Non-Residential Development – This land use classification is defined as a parcel or group of parcels that may currently be identified as vacant undeveloped property or undeveloped non-residential property, zoned for a non-residential use including proposed commercial retail or service, office or professional service, hotel or motel, manufacturing, warehousing, parking lot, and/or institutional facilities including hospitals or other medical facilities, private schools or education centers, churches or other non-profit organizations based on a Tentative Development Plan, Tentative Tract Map or Specific Plan.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

For balloting purposes to establish each property’s maximum assessment and proportional special benefit, these parcels were assigned an EBU that reflected the total EBU’s planned for that parcel at build-out (5.00 EBU per applied acre as applicable to Developed Non-Residential properties).

However, for calculation of the annual assessments each fiscal year, the Assessment Engineer shall apply to such parcels an EBU that best reflects that parcel’s proportional special benefit from the improvements and services provided as compared to other properties in the District and Zone based on the type and location of the improvements to be maintained, the proximity of the property to those improvements, and the development status of the property. Because these factors can vary from year to year and from parcel to parcel, the calculated EBU for each parcel originally balloted as Planned Non-Residential Development may be different. The Assessment Engineer may identify the parcel and treat the parcel as a Vacant Undeveloped Property (assigned 1.00 EBU per applied acre up to a maximum of 5.0 EBU); as an Undeveloped Non-Residential Property (assigned 1.00 EBU per acre for the parcel’s total acreage); or may temporarily identify the parcel as a Special Case Parcel (refer to this land use classification below) assigning the parcel any proportional EBU up to the maximum EBU for which the property was ballot (5.00 EBU per applied acre as applicable to Developed Non-Residential properties).

Based on the anticipated development of properties within the District (specifically in Zone A) and the location and timing of the improvements to be accepted by the City for maintenance, the parcels initially identified as Planned Non-Residential Development properties have each been assigned a weighted special benefit per acre applicable to either Vacant Undeveloped Property or Undeveloped Non-Residential Property.

Vacant Undeveloped Property – This land use classification includes undeveloped properties that are identified as parcels with no development including residential and non-residential properties, undeveloped school sites, and parcels that may currently be used for agricultural purposes. Although it is recognized that most of the improvements within the various Zones and Sub-Zones of the District will be constructed and accepted for maintenance in large part as properties are developed and these developments will clearly receive a particular and distinct benefit (direct special benefit) from those improvements, it is also recognized that most of the various improvements proposed within the District are considered shared improvements that collectively support the overall development of properties within the District and Zones to their full and best use, including the vacant undeveloped properties. However, it is also recognized that the planned parks, internal (neighborhood) street lights and some of the non-streetscape improvements within the District are in large part specifically related to the residential parcels that have an immediate utilization of these improvements and the special benefit costs associated with the parks, neighborhood street lights and landscape areas should be assessed primarily if not entirely to the properties which are developed or actively being developed. Likewise, most of the remaining landscaping and lighting improvements within the District will likely be installed and accepted for maintenance as properties are developed and those developing parcels clearly receive a proportionately greater benefit from those improvements than do the undeveloped properties. Therefore, it has been determined that parcels identified as Vacant Undeveloped Property shall be assigned a proportional EBU that is twenty percent (20%) of that assigned to developed properties, which is 1.0 EBU per applied acre (20% of the 5.0 EBU per acre assigned to Developed Non-Residential properties), up to a maximum of five (5.0) acres per parcel or 5.0 EBU per parcel. (e.g., a Vacant Undeveloped Property which is 7.00-acres would be assigned

5.00 EBU [5.0-acre maximum x 1.0 EBU/acre]).

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Undeveloped Residential Property – This land use classification includes undeveloped properties that were originally identified as Planned Residential Development parcels, but have not yet been developed or subdivided, but are either adjacent to or in close proximity to improvements that will be maintained for the current fiscal year, and/or the property is actively being developed. While many of the improvements within the District will be constructed and accepted for maintenance in large part as properties are being subdivided or developed and those properties will clearly receive a particular and distinct benefit (direct special benefits) from those improvements, it is also recognized that certain improvements within the District are installed in advance of property development that are considered shared improvements that collectively support the overall development of properties within the District and Zones to their full and best use, including the vacant undeveloped properties. However, it is also recognized that some of these shared improvements within the District have a more direct and particular benefit to those undeveloped properties directly adjacent to the improvements or in close proximity to those improvements than do the vacant undeveloped properties that are not actively being developed or are further from those shared improvements. Therefore, it has been determined that parcels identified as Undeveloped Residential Property shall be assigned a proportional EBU that is twenty percent (20%) of that assigned to developed properties, which is 1.0 EBU per applied acre (20% of the 5.0 EBU per acre assigned to Developed Non-Residential property), but unlike parcels designated as Vacant Undeveloped Property, there is no acreage cap for the parcel (e.g., an Undeveloped Residential Property which is 7.00-acres would be assigned 7.00 EBU [7.0 acres x 1.0 EBU/acre]).

Undeveloped Non-Residential Property – This land use classification includes undeveloped properties that were originally identified as Planned Non-Residential Development parcels, but have not yet been developed or subdivided, but are either adjacent to or in close proximity to improvements that will be maintained for the current fiscal year, and/or the property is actively being developed. While many of the improvements within the District will generally be constructed and accepted for maintenance in large part as properties are being subdivided or developed and those properties will clearly receive a particular and distinct benefit (direct special benefits) from those improvements, it is also recognized that certain improvements within the District are installed in advance of property development that are considered shared improvements that collectively support the overall development of properties within the District and Zones to their full and best use, including the vacant undeveloped properties. However, it is also recognized that some of these shared improvements within the District have a more direct and particular benefit to those undeveloped properties directly adjacent to the improvements or in close proximity to those improvements than do the vacant undeveloped properties that are not actively being developed or are further from those shared improvements. Therefore, it has been determined that parcels identified as Undeveloped Non-Residential Property shall be assigned a proportional EBU that is twenty percent (20%) of that assigned to developed properties, which is 1.0 EBU per applied acre (20% of the 5.0 EBU per acre assigned to Developed Non-Residential property), but unlike parcels designated as Vacant Undeveloped Property, there is no acreage cap for the parcel (e.g., an Undeveloped Non-Residential Property which is 7.00-acres would be assigned 7.00 EBU [7.0 acres x 1.0 EBU/acre]).

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Special Case Parcels – In many landscaping and lighting districts (particularly districts that have a wide range of land uses, phased developments, and/or diversity in the location and type of improvements) there may be one or more parcels to be assessed that the standard land use classifications and proportionalities, previously defined, do not accurately identify the use and special benefit received from the improvements. Properties that are typically classified as Special Case Parcels usually involve partial or mixed use development of the property or development restrictions whether those restrictions are temporary or permanent and affect the properties proportional special benefit. Examples of such restrictions may include situations where only a portion of the parcel’s total acreage is or can be developed. In such a case, the net acreage of the parcel that is utilized rather than the gross acreage of the parcel may be applied to calculate the parcel’s proportional special benefit similar to how the Public School site parcel is treated.

Each such parcel shall be addressed on a case-by-case basis by the Assessment Engineer and the EBU assigned to such parcels shall be based on the specific issues related to that parcel and its proportional special benefit compared to other properties that receive special benefits from the improvements.

Exempt Properties – Within most districts, there are lots or parcels of land that do not receive a special benefit from the improvements provided (exempt from assessment), which may include, but is not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, public rights-of-way, or utility rights-of-way; common areas, bifurcated lots; sliver parcels or any other parcel that has little or no assessed value and cannot be developed independently; parcels that are part of the improvements being maintained by the District or that the City has determined that the parcel cannot be developed. These types of parcels are considered to receive no special benefit from the improvements and are therefore exempted from assessment and are assigned 0.00 EBU.

A summary of the applied Equivalent Benefit Units (EBUs) for the various land use classifications within the District is shown in the following table:

Assessment Land Use
Single Family Residential 1.00 EBU per Unit/Parcel
Multi-Family Residential 0.80 EBU per Unit
Developed Non-Residential 5.00 EBU per Acre
Public School Property 5.00 EBU per Adjusted Acreage
Planned Residential Development 0.50 EBU per Unit
Planned Non-Residential Development 2.50 EBU per Acre
Vacant Undeveloped Property 1.00 EBU per Acre (Maximum of 5 Acres) Approved Residential Development 1.00 EBU per Unit
Approved Non-Residential 5.00 EBU per Acre
Approved Multi-Residential 0.80 EBU per Unit
Approved Condominium Property 1.00 EBU per Unit
Undeveloped Residential Property 1.00 EBU per Acre
Undeveloped Non-Residential 1.00 EBU per Acre
Planned Multi-Family Residential 0.80 EBU per Unit
Exempt - EBU per Acre
Special Case 1.00 EBU per Acre
Equivalent Benefit Unit Formula
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Equivalent Benefit Unit Summary
The following is a summary of the Equivalent Benefit Units applicable to the various land use classifications identified in each District Zone or Sub-Zone:

Zone A

Sub-Zone B1

Sub-Zone B2

Sub-Zone B3

Assessment Land Use
Total
Parcels
Residential
Units/Lots
Applied
Acreage
Equivalent Benefit
Units (EBU)
Vacant Undeveloped Property 1 - 4.64 4.64
Undeveloped Non-Residential 2 - 16.85 16.85
Exempt 1 - 1.77 -
Totals 4 - 23.26 21.49
Assessment Land Use
Total
Parcels
Residential
Units/Lots
Applied
Acreage
Equivalent Benefit
Units (EBU)
Single Family Residential 444 444 - 444.00
Exempt 23 - 4.96 -
Totals 467 444 4.96 444.00
Assessment Land Use
Total
Parcels
Residential
Units/Lots
Applied
Acreage
Equivalent Benefit
Units (EBU)
Vacant Undeveloped Property 1 - 4.79 4.79
Exempt 2 - 12.91 -
Totals 3 - 17.70 4.79
Assessment Land Use
Total
Parcels
Residential
Units/Lots
Applied
Acreage
Equivalent Benefit
Units (EBU)
Vacant Undeveloped Property 4 - 20.00 20.00
Exempt 2 - 9.58 -
Totals 6 - 29.58 20.00
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Part III – Estimate of Costs
Calculation of Assessments
An assessment amount per Equivalent Benefit Unit (Assessment per EBU) is calculated by:

Taking the “Total Annual Expenses” (Total budgeted costs) and subtracting the “Total General Benefit Expenses” (Landscaping General Benefit Expenses and/or Lighting General Benefit Expenses), to establish the “Total Special Benefit Expenses;” Total Annual Expenses – General Benefit Expenses = Special Benefit Expenses To the resulting “Special Benefit Expenses,” various “Funding Adjustments” may be applied that may include, but are not limited to:
 “Reserve Fund Transfer/Deduction,” represents an amount of available existing funds from the “Operational Reserve Fund Balances” being applied to pay a portion of the Special Benefit Expenses for the fiscal year.
 “Additional City Funding,” represents an adjustment that is typically used to address any funding gap between the amount budgeted to provide the improvements and services (“Special Benefit Expenses”); and the amount that will be collected through the assessments.

This funding may be addressed by an additional City contribution or loan from the City which is intended to be recovered in future fiscal years.

These adjustments to the Special Benefit Expenses result in the net special benefit amount to be assessed “Balance to Levy;”
Special Benefit Expenses - Funding Adjustments = Balance to Levy The amount identified as the “Balance to Levy” is divided by the total number of EBUs of parcels that receive special benefit to establish the Assessment Rate (“Assessment Per EBU”). This Assessment Rate is then applied back to each parcel’s individual EBU to calculate the parcel’s proportionate special benefit and assessment amount for the improvements.

Balance to Levy / Total EBU = Assessment Per EBU (Assessment Rate) Assessment Per EBU x Parcel EBU = Parcel Assessment Amount Note: The maximum assessments and proposed assessments for fiscal year 2026/2027 outlined in this Report are intended to fully support the expenses identified as “Special Benefit Expenses.” Consequently, there are no “Funding Adjustments” reflected in the budgets, the “Balance to Levy” is equal to the total “Special Benefit Expenses.”

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Zone Budgets and Assessments
The Zone budgets and assessments outlined on the following page for the District are based on the City’s estimate of the expenses and related funding necessary for the operation, maintenance and servicing of the District improvements identified in Part I of this Report for Zone A and Zone B for fiscal year 2026/2027.

The Maximum Assessment per EBU (Maximum Assessment Rates) for Zone A and Zone B (SubZones B1, B2, and B3) represents the calculated authorized maximum assessment rates for fiscal year 2026/2027 based on the assessment rates presented to the property owners of record within the District as part of the Ballot Proceeding in fiscal year 2017/2018, adjusted by the authorized Assessment Range Formula of 3.5% per year. Reference is hereby made to the Assessment Range Formula described after the budget.

Refer to the Assessment Roll outlined in “Part IV — Assessment Roll” to reference the individual assessment amounts proposed to be levied and collected for each parcel in fiscal year 2026/2027.

A listing of the parcels to be assessed within this District along with the assessment amounts has been filed with the City Clerk in an electronic format and is by reference made part of this Report.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Zone Budgets & Assessments, Fiscal Year 2026/2027
Zone A Zone B Zone B Zone B Total Budget
Sub-Zone B1 Sub-Zone B2 Sub-Zone B3 Fiscal Year
2026/2027

ANNUAL OPERATION & MAINTENANCE EXPENSES
Annual Lighting Operation & Maintenance Expenses 236$ 24,561$ 67$ 136$ 25,000$ Annual Landscaping Operation & Maintenance Expenses - 88,432 470 1,098 90,000 TOTAL ANNUAL OPERATION & MAINTENANCE EXPENSES 236$ 112,993$ 536$ 1,234$ 115,000$

REHABILITATION/RENOVATION FUNDING & CAPITAL EXPENDITURES Lighting Rehabilitation/Renovation Funding -$ -$ -$ -$ -$ Landscape Improvement Rehabilitation/Renovation Funding - - - - - Planned Capital Expenditures (For Fiscal Year) -$ -$ -$ -$ -$ TOTAL REHABILITATION/RENOVATION FUNDING & CAPITAL EXPENDITURES -$ -$ -$ -$ -$

INCIDENTAL EXPENSES
Operational Reserves (Collection) -$ -$ -$ -$ -$
District Administration Expenses 51$ 25,650$ 121$ 277$ 26,100$ County Administration Fee 2 955 5 10 972
Annual Administration Expenses 53 26,605 126 288 27,072 TOTAL INCIDENTAL EXPENSES 53$ 26,605$ 126$ 288$ 27,072$ TOTAL ANNUAL EXPENSES 290$ 139,599$ 662$ 1,522$ 142,072$

GENERAL BENEFIT EXPENSES
Lighting General Benefit — City Funded (24)$ (972)$ (7)$ (14)$ (1,015)$ Landscaping General Benefit — City Funded (5,696) - (28) (70) (5,795) TOTAL GENERAL BENEFIT EXPENSES (24)$ (6,668)$ (35)$ (84)$ (6,810)$ TOTAL SPECIAL BENEFIT EXPENSES 266$ 132,931$ 627$ 1,438$ 135,262$

FUNDING ADJUSTMENTS
Reserve Fund Transfer/Deduction -$ -$ -$ -$ -$
Additional City Funding - - - - -
TOTAL FUNDING ADJUSTMENTS / CONTRIBUTIONS -$ -$ -$ -$ -$ BALANCE TO LEVY 266$ 132,931$ 627$ 1,438$ 135,262$

DISTRICT STATISTICS
Total Parcels 4 467 3 6 480
Assessed Parcels 3 444 1 4 452
Equivalent Benefit Units (EBU) 21.49 444.00 4.79 20.00 490.28 Assessment Per EBU $12.38 $299.40 $130.94 $71.90
Maximum Assessment Rate Per EBU $53.15 $810.92 $810.92 $810.92

FUND BALANCE
Estimated Beginning Fund Balance 1,787$ 570,670$ 8,859$ 4,673$ 585,989 $ Operational Reserve & Rehabilitation Funding Collected - - - - - Estimated Ending Fund Balance 1,787$ 570,670$ 8,859$ 4,673$ 585,989$

BUDGET ITEMS
Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Assessment Range Formula
Any new or increased assessment requires certain noticing and meeting requirements by law.

The Brown Act defines the terms “new or increased assessment” to exclude certain conditions.

These certain conditions included “any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed.”
Recognizing that the cost of maintaining the improvements will increase over time due to inflation, the maximum assessments (initial maximum assessment amounts and maximum assessment rates established in fiscal year 2017/2018) for Zone A and Zone B include a fixed 3.5% annual inflationary adjustment (Assessment Range Formula). This 3.5% annual adjustment provides for reasonable increases and inflationary adjustment to the initial maximum assessment rates approved by the property owners as part of the protest ballot proceeding conducted in connection with the formation of the District.

The adoption of the maximum assessment rates and the Assessment Range Formula described herein does not mean that the annual assessments will necessarily increase each fiscal year, nor does it absolutely restrict the assessments to the adjustment maximum assessment amount.

Although the maximum assessment rates that may be levied shall be adjusted (inflated) by 3.5% each year, the actual amount to be assessed will be based on the Balance to Levy for that fiscal year. If the calculated assessment is less than the adjusted maximum assessment, then the calculated assessment may be approved by the City Council for collection. If the calculated assessment (based on the proposed budget) is greater than the adjusted maximum assessment for that fiscal year, then the assessment would be considered an increased assessment and would require property owner approval through a protest ballot proceeding before imposing such an increase. Otherwise, it would be necessary to reduce the budget or provide a contribution from the City to reduce the Balance to Levy (amount to be assessed) to an amount that can be supported by an assessment rate less than or equal to the maximum assessment rate authorized for that fiscal year.

The Assessment Range Formula (3.5% annual adjustment) shall be applied to the maximum assessment rates for Zone A and Zone B identified in the District Budgets Establishing Maximum Assessments as presented in this Report, commencing in fiscal year 2018/2019 and all subsequent fiscal years unless the City Council formally suspends its application.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Part IV — Assessment Roll
Due to the number of parcels in the District, the Assessment Roll for fiscal year 2026/2027 (a listing of the parcels to be assessed within this District along with the assessment amounts) has been filed with the City Clerk in an electronic format and is by reference made part of this Report.

The proposed Assessment Roll shall be available for public inspection in the City Clerk’s Office during normal office hours.

The Assessment Roll reflects all properties currently identified within the District and their assessment amount(s) for fiscal year 2026/2027. Each parcel listed on the Assessment Roll is currently shown and illustrated on the County Assessor’s Roll and the County Assessor’s Parcel Number Maps (APN maps). These records are by reference made part of this Report and shall govern for all details concerning the description of the lots or parcels. All assessments presented on the assessment roll are subject to change as a result of parcel changes made by the County including parcel splits, parcel merges or development changes that occur prior to the County Assessor's Office securing the final roll and generating tax bills for fiscal year 2026/2027.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

Part V — District Diagrams
The lots and parcels of land within the Pasadera Landscaping and Lighting District consist of the lots and parcels within the planned non-residential and residential development areas identified in the DJ Farms Specific Plan and commonly referred to as the Pasadera development located on the south side of Main Street near Obispo Street and Flower Avenue.

The District Diagrams provided on the following pages provide a visual depiction of the boundaries of the District and the Zones and Sub-Zones applicable for fiscal year 2026/2027. These diagrams also provide a visual depiction of the location and extent of the improvements to be maintained within the District at build-out. The combination of these Diagrams and the Assessment Roll contained in Part IV of this Report constitutes the Assessment Diagram for this District and encompasses all lots, parcels and subdivisions of land that receive or will receive a special benefit from the improvements to be provided in the District at the time this Report was prepared.

The lines and dimensions of each lot, parcel, and subdivision of land contained in these diagrams are inclusive of the parcels listed in “Part IV — Assessment Roll” of this Report as they existed at the time this Report was prepared and shall include all subsequent subdivisions, lot-line adjustments, or parcel changes therein.

Reference is hereby made to the Santa Barbara County Assessor’s Parcel Maps for a detailed description of the lines and dimensions of each parcel within the Pasadera Landscaping and Lighting District including all subsequent subdivisions, lot-line adjustments, or parcel changes therein.

Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

District Diagram – Boundary and Zones, Fiscal Year 2026/2027 Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

District Diagram – Development and Improvements, Planned at Buildout Pasadera Landscaping and Lighting District
Engineer’s Report
Fiscal Year 2026/2027

District Diagram – Development and Improvements, Fiscal Year 2026/2027

RESOLUTION NO. 2026-25

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUADALUPE, COUNTY OF SANTA BARBARA, STATE OF CALIFORNIA, APPROVING THE PRELIMINARY ENGINEER’S REPORT FOR THE PASADERA

LANDSCAPING AND LIGHTING DISTRICT
WHEREAS, The City Council of the City of Guadalupe, California, has, by previous Resolutions, formed the Pasadera Landscaping and Lighting District (herein referred to as the “District”) pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “1972 Act”), that provides for levy and collection of assessments by the County of Santa Barbara for the City of Guadalupe to pay the maintenance and services of landscaping, lighting, appurtenant facilities and operations related thereto; and,
WHEREAS, the City Council has retained Willdan Financial Servicesto assist with the district's annual levy and to prepare and file a report with the City Clerk in accordance with the 1972 Act; and, WHEREAS, there has now been presented to this City Council the Engineer’s Annual Levy Report, which describes the District and improvements and includes the proposed budgets and assessments for Fiscal Year 2026/2027; and,
WHEREAS, the City Council has carefully examined and reviewed the Engineer’s Annual Levy Report as presented and is preliminarily satisfied with the District, each of the budget items and documents as set forth therein, and is satisfied that the proposed assessments contained therein, have been spread in accordance with the benefits received from the improvements, operation, maintenance, and services to be performed within the District, as set forth in said Report; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Guadalupe as follows:

SECTION 1: The City Council hereby approves the Engineer’s Report on a preliminary basis as submitted or amended by direction of this City Council, and orders said Report to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection, and by reference the Engineer’s Report is made part of this resolution; and SECTION 2: The City Council hereby orders Willdan Financial Services to file the Engineer’s Annual Levy Report concerning the levy of assessments for the District in accordance with Chapter 3, Section 22622 of the 1972 Act with the City Clerk of the City of Guadalupe.

SECTION 3: The improvements within the District may include any improvements, expenses, and services authorized pursuant to the 1972 Act, including, but not limited to, the maintenance, operation, and servicing of local street lighting, parks, and various landscaping improvements established in connection with the development of the properties within the District, and which shall be maintained for the special benefit of those properties. The maintenance and servicing of the improvements generally include, but are not limited to, the materials, equipment, utilities, labor, and incidental expenses, including administrative ATTACHMENT 4

expenses, required for annual operation, as well as the performance of periodic repairs and replacement activities as needed to provide for the growth, health, and beauty of the parks and landscaping within specified public areas, rights-of-way and/or dedicated easements, the proper operation and functioning of related amenities including, irrigation and drainage systems, specified fencing, hardscapes; sports courts and fields; playground equipment and structures; sidewalks, ornamental or safety lighting; benches, trash receptacles; drinking fountains, picnic facilities and any other equipment, structures or facilities related to the parks and/or landscape areas; and the proper operation of the public street lights and street lighting system within the public rights-of-way which may include, but is not limited to the furnishing of electric current or other illuminating agent; as needed maintenance, repair, and replacement of worn out electrical components and light fixtures, including bulbs, ballasts, photoelectric cells, meters, electrical cables; repair or replacement of damaged poles, ground wires, and conduits caused by accidents, vandalism, time, and weather; and monitoring of the Underground Service Alert (USA) network to prevent damage by excavation.

SECTION 4: The District, as outlined in the Engineer’s Report at the time of formation, incorporates Zones of benefit as authorized in accordance with Chapter 1, Sections 22568 and 22570 of the 1972 Act, which are designated as:

Zone A
Zone B, including Sub-Zone B1, Sub-Zone B2, and Sub-Zone B3 SECTION 5. 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 23rd day of June 2026 by the following vote:

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

I, Judy Wilson, City Clerk of the City of Guadalupe, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2026-25, has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held June 23, 2026, and that same was approved and adopted.

ATTEST:
______________________________ ____________________________________ Judy Wilson, City Clerk Ariston Julian, Mayor

APPROVED AS TO FORM:
__________________________________
Wendy Stockton, Assistant City Attorney

Agenda Item No. 6F

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of June 23, 2026

_______________________________ ___________________________ Prepared by: Approved by:

Michael Cash, Director of Public Safety David Trujillo, City Administrator SUBJECT: Second Reading of Ordinance No. 2026-527 adopting the 2025 California Fire Code RECOMMENDATION:

That the City Council adopt, on the second reading, Ordinance No. 2026-527 repealing Ordinance No. 2022-505 and adopting a new Chapter 8 of Title 15 of the Guadalupe Municipal Code.

BACKGROUND:

The City Council introduced Ordinance No. 2026-527 at its meeting on June 9, 2026. This constitutes the second reading of the ordinance.

FISCAL IMPACT:

None.

ATTACHMENT:

1. Ordinance No. 2026-527
Michael Cash

ORDINANCE NO. 2026-527

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GUADALUPE, CALIFORNIA, REPEALING ORDINANCE 2022-505 AND ADOPTING A NEW CHAPTER 8 OF TITLE 15 OF THE GUADALUPE

MUNICIPAL CODE
WHEREAS, the State of California has recently adopted the 2025 California Fire Code, which became effective January 1, 2026; and
WHEREAS, it is the desire and intent of the City Council of the City of Guadalupe to provide citizens with the greatest degree of fire, life, and structural safety in buildings in the most cost-effective manner by adopting that body of regulations referred to as the 2025 California Fire Code with amendments specific to the City of Guadalupe; and
WHEREAS, the California Health and Safety Code Section 17958.5 and Section 18941.5 require the City Council, before making any modifications or changes to the California Fire Code, to make an express finding that each such modification or change is needed; and WHEREAS, California Health and Safety Code Section 17958.7 requires that such changes must be determined to be reasonably necessary because of local climatic, geological, or topographical conditions; and
WHEREAS, such findings must be made available as a public record, and a copy thereof with each such modification or change shall be filed with the State of California Building Standards Commission; and WHEREAS, it is the intent of the City of Guadalupe to enact the 2025 California Fire Code with the amendments written below and shall become effective January 1, 2026:

THE CITY COUNCIL OF THE CITY OF GUADALUPE, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

Section 1. Findings: Pursuant to Health and Safety Code Section 17958.7, the City Council finds that the following conditions exist locally which require that amendments be made to the 2025 California Fire Code in order to protect the public health, safety, and welfare:

A. Climatic Conditions

1. Santa Barbara and San Luis Obispo Counties are in an area of high fire risk, and the local area regularly experiences high wind conditions, high temperatures, and low humidity, These winds, which can cause small fires which spread quickly, are a contributing factor to the high fire danger in the area, which creates a potential for localized disasters which could reduce the availability of mutual aid firefighting resources.

ATTACHMENT 1

2. The City of Guadalupe is located in a semi-arid Mediterranean-type climate which predisposes all fuels to rapid ignition and spread of fire. Therefore, there exists a need for additional fire protection measures.

3. The watershed upstream of the City experienced major wildland fire over the years which resulted in significant destruction of the vegetation and has created the potential for a dramatic increase in water flow through the Santa Maria River. The Santa Maria River Levee bordering the northern edge of the City terminates at the intersection of Highway 1, and from that point west, there is no protection for the City from flooding due to high flows in the Santa Maria River. This potential for significant flooding could place an extraordinary draw upon local emergency resources, and the need for additional requirements for fire protection as set forth in the amendments are necessary to supplement the capabilities of local emergency resources in a time of a flood emergency.

B. Geographic Conditions

1. The Guadalupe area is in close proximity to several active seismic faults, and amendments to the State Fire Code are necessary to supplement the capabilities of local emergency resources in a time of an area-wide earthquake.

2. The City has the potential for limited access to mutual aid resources. Access from the north is via one bridge over the Santa Maria River and from the south through several cuts in local mountains. In the event of an earthquake, flood, or other incidents, the availability of assistance from outside of the local area could be compromised. Amendments to the State Fire Code are necessary to ensure the City can meet the needs of the residents during these events.

3. The City of Guadalupe is located, at its westernmost part, approximately three and a half miles from the ocean. The city’s typical groundwater level is at fifty feet, with the areas of the city at levels as shallow as six to ten feet. This condition makes the City more prone to subsidence issues than most inland communities.

4. Soil formation within Guadalupe has been strongly influenced by the Santa Maria River floodplain. Soils underlying and surrounding the City are alluvial in nature, consisting primarily of sandy loams and silty clay loams. This low coastal plain and valley bottom with alluvial deposits and areas with high groundwater make the City susceptible to ground liquefaction.

Section 2. Repeal of Current Fire Code. Ordinance 2022-505, adopting the 2025 California Fire Code, is hereby repealed in its entirety.

Section 3. Adoption of Fire Code. A new Chapter 8 of Title 15 of the Guadalupe Municipal Code is hereby adopted to read as follows:

15.08.010 Adoption. The California Fire Code, 2025 edition as published by the State of California, including appendix A through O, and subsequent editions as adopted by the State of California, are adopted by reference subject to the additions, deletions, and amendments set forth in this chapter.

15.08.020 2025 California Fire Code amendments.

CHAPTER 1 SCOPE AND ADMINISTRATION
101 SCOPE AND GENERAL REQUIREMENTS
101.1 Title. These regulations shall be known as the Fire Code of the City of Guadalupe, hereinafter referred to as “this code.”

104 DUTIES AND POWERS OF THE FIRE CODE OFFICIAL
104.1.1 Peace Officer Powers. The Fire Chief, Fire Captains, Fire Inspectors, and other personnel as authorized by the Fire Chief, shall have the powers of police officers in performing duties under this code and shall have powers of peace officers as provided by California Penal Code Section 830.37 and shall have authority to issue citations.

104.12 Authority at Fires and Other Emergencies. The Fire Chief or designee in charge at the scene of a fire or other emergency involving the protection of life, environment, or property or any part thereof shall have the authority to direct such operation as necessary to extinguish or control any fire, perform any rescue operation, investigate the existence of suspected or reported fires, gas leaks or other hazardous conditions or situations, or take any other action necessary in the reasonable performance of duty. In the exercise of such power, the Fire Chief or designee is authorized to prohibit any person, vehicle, vessel or thing from approaching the scene and is authorized to remove, or cause to be removed or kept away from the scene, any person, vehicle, vessel or thing which could impede or interfere with the operations of the Fire Department and, in the judgment of the Fire Chief or designee, any person not actually and usefully employed in the extinguishing of such fire or in the preservation of the environment and property in the vicinity thereof.

109 INSPECTIONS
109.1 Inspection authority. The fire code official is authorized to enter and examine any building, structure, marine vessel, vehicle or premises in accordance with Section 104.34 of the California Fire Code for the purpose of enforcing this code.
112 MEANS OF APPEALS
112.1 General. In order to hear and decide appeals of orders, decisions or determinations made by the Fire Code Official relative to the application an interpretation of this code, there shall be and is hereby created a Board of Appeals. The Board of Appeals shall be appointed by the governing body and shall hold office at its pleasure. The Fire Code Official shall be an ex officio member of said Board but shall

have no vote on any matter before the Board. The Board shall adopt rules of procedure for conducting its business, and shall render all decisions and findings in writing to the appellant with a duplicate copy to the Fire Code Official.
112.1.1 Appeals Process. Whenever a Fire Inspector or other Fire Department member disapproves an application or refuses to grant a permit applied for, or when it is claimed that the provisions of this code do not apply or that the true intent and meaning of this code have been misconstrued or wrongly interpreted, the applicant may appeal the decision of the Fire Inspector or other Fire Department member to the Fire Chief IN WRITING within 15 calendar days from the date of the decision. 112.1.2 Appeals Process. Whenever the Fire Chief disapproves an application or refuses to grant a permit applied for, or when it is claimed that the provisions of this code do not apply or that the true intent and meaning of this code have been misconstrued or wrongly interpreted, the applicant may appeal the decision of the Fire Chief to the Board of Appeals IN WRITING within 15 calendar days from the date of the decision.
113 VIOLATIONS
113.2 Owner/occupant responsibility. Correction and abatement of violations of this code shall be the responsibility of the owner or owner's authorized agent. Where an occupant creates or allows to be created hazardous conditions in violation of this code, the occupant shall be held responsible for the abatement of such hazardous conditions.
113.4 Violation Penalties. Persons who shall violate a provision of this code, the Guadalupe Municipal Code, or shall fail to comply with any of the requirements thereof or who shall erect, install, alter, repair or do work in violation of the approved construction documents or directive of the Fire Code Official, or of a permit or certificate used under provisions of this code, shall be guilty of a misdemeanor, punishable by a fine of not more than $1,000.00 or by imprisonment not exceeding 180 calendar days, or both such fine and imprisonment for each violation. Each day that a violation continues after due notice has been served shall be deemed a separate offense. The Fire Code Official may also cause an administrative action to be initiated in accordance with Title 1, Chapters 1.10 and 1.11 of the Guadalupe Municipal Code.
114 STOP WORK ORDER
114.4 Failure to Comply. Any person who shall continue any work after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be guilty of a misdemeanor and subject to the penalties set forth in Section 113.4 of this code. The Fire Code Official may also cause an administrative action to be initiated in accordance with Title 1, Chapters 1.10 and 1.11 of the Guadalupe Municipal Code.

CHAPTER 3 GENERAL REQUIREMENTS
304 COMBUSTIBLE WASTE MATERIAL

304.1.3 Vegetation. Weeds, grass, vines, or other growth that is capable of being ignited and endangering property shall be cut down and removed by the owner or occupant of the premises.

Vegetation clearance requirements in urban/wildland interface areas shall be in accordance with California Fire Code Chapter 49 and Title 19, Division 1, 3.07(b). Refer to Guadalupe Municipal Code Chapter 8.16 for weed, trash, and debris removal and abatement procedures. 307 OPEN BURNING, RECREATIONAL FIRES AND PORTABLE OUTDOOR FIREPLACES 307.1.2 Combustible Refuse Prohibited Open Burning. A person shall not burn any combustible refuse in any open outdoor fire within the City. Burning in any incinerator is prohibited except with a permit issued by the Fire Code Official and in accordance with Federal, State, and Local requirements.

EXCEPTIONS:

1. Barbeque and recreational fires (campfires).

2. Agricultural burning with a permit issued by the Fire Code Official and in accordance with Federal, State, and Local requirements.

3. Fires set under public authority.
308 OPEN FLAMES
308.1.4 Open-Flame Cooking Devices. Charcoal burners and other open flame cooking devices shall not be operated on combustible balconies or within 10 feet (3,048 mm) of combustible construction.
308.1.4.1 Liquefied-Petroleum-Gas-Fueled Cooking Devices. LP-gas burners having an LP-gas container shall not be located on combustible balconies or within 10 feet (3,048 mm) of combustible construction.
311 VACANT PREMISES
311.1 General. Temporarily unoccupied buildings, structures, premises, or portions thereof, including tenant spaces or buildings damaged by fire or other disasters, shall be safeguarded and maintained in accordance with this section.
311.1.1 Abandoned Premises. Buildings, structures, and premises for which an owner cannot be identified or located by dispatch of a certificate of mailing to the last known or registered address, which persistently or repeatedly becomes unprotected or unsecured, which have been occupied by unauthorized persons or for illegal purposes, or which present a danger of structural collapse or fire spread to adjacent properties shall be considered abandoned, declared unsafe and abated by demolition or rehabilitation as directed by the Building Official and Fire Code Official. 311.1.3 Buildings or Property Damaged by Fire or Disaster. The owner, occupant, or other person having under their control any property or materials on property damaged by fire or other disasters,

when access by the public is possible, shall secure the property either by boarding up all openings, fencing, barricading, or other appropriate measures as approved by the Fire Code Official. Within 15 calendar days after written notice by the Fire Code Official to do so has been served, all debris and/or damaged materials shall be removed from the property and deposited in accordance with Federal, State, and Local requirements or proof of contractual arrangements that have been made for demolition, replacement, or repair of all fire or disaster-damaged structures remaining on the property. 311.1.4 Authority to Secure Property Damaged by Fire or Other Disaster. The Fire Code Official shall be empowered to initiate necessary actions to secure property damaged by fire or other disaster and/or remove and dispose of debris and other damaged materials when, after giving notice to the owner of record of the property, the owner fails to secure the property and/or remove debris as ordered by the Fire Code Official.
311.1.5 Cost Recovery. The Fire Code Official is authorized to initiate any and all actions necessary to recover the costs of securing property damaged by fire or other disaster and/or removing and disposing of debris and other damaged materials when, after giving notice to the owner of record of the property, the owner fails to secure the property and/or remove debris, and the City provides the service either through the use of City resources or a contractor.
312 VEHICLE IMPACT PROTECTION
312.2 Posts. Guard posts shall comply with all of the following requirements:

1. Constructed of steel not less than 4 inches (102 mm) in diameter and concrete-filled.

2. Spaced not more than 3 feet (914 mm) between posts on center.

3. Set not less than 3 feet (914 mm) deep in a concrete footing of not less than 18 inches (458 mm) in diameter.

4. Set with the top of the posts not less than 3 feet (914 mm) above ground.

5. Located not less than 3 feet (914 mm) from the protected object. 316 HAZARDS TO FIRE FIGHTERS
316.7 Fog, Smoke or Gas Emitting Systems. No system or device shall be installed in any building or portion of a building which, as a part of its operation discharges any fog, gas, smoke, vapor, liquid, or other product when the design of the system discharge is to obscure the vision of any person, cause disorientation, or incapacitate any person within the building or portion thereof. Nothing in this section is intended to preclude the connection of an alarm system to any fire suppression system.

CHAPTER 4 EMERGENCY PLANNING AND PREPAREDNESS
401 GENERAL
401.3.5 Hazardous Materials Events. In the event an unplanned or unwanted release of hazardous materials occurs on a property, the owner or occupant shall immediately report such conditions to the Fire Department.

403 EMERGENCY PREPAREDNESS REQUIREMENTS
403.11.1 Fire watch personnel. Where, in the opinion of the fire code official, it is essential for public safety in a place of assembly or any other place where any other Activity requires a fire watch. 403.11.1.1 When required. Fire watch shall be provided as follows:

1. When required by other sections of this code.

2. When the Fire Code Official deems a condition essential for public safety.

3. When the Fire Code Official determines that conditions may result in a rekindle. 403.11.1.2 Financial Responsibility. The property owner, the tenant or occupant in control of the premises shall be responsible for all costs of providing a fire watch. 403.11.1.3 Qualifications. Personnel assigned to fire watch duties shall possess the following minimum qualifications:

1. Shall be at least 18 years of age.

2. Shall be able to speak, read, write and understand English.

3. Shall be capable of executing the duties and responsibilities as specified in 114.4.

4. Shall be capable of operating a mobile telephone device and/or portable radio.

5. Shall be capable of inspecting all portions of their assigned watch area. 403.11.1.4 Number and Hours. The Fire Code Official shall specify the minimum number of fire watch personnel required and the hours during which they must be present based on the conditions and size of the facility.
403.11.1.5 Duties and Responsibilities. Duties and responsibilities of persons assigned fire watch duties include, but are not limited to the following:

1. To know the address of the facility being watched.

2. To be equipped with a mobile telephone device that can be used to contact 9-1-1 or a portable radio that can be used to communicate with a constantly attended security/communications center.

3. To continuously make rounds and monitor all assigned areas.

4. To immediately report any sign of smoke, fire or other emergency to 9-1-1 or to the security/communications center.

5. To activate the building fire alarm system when the building is equipped with such a system or notify those present to evacuate the building or area.

6. To assist with the evacuation of people present in the area.

7. To keep a fire watch log that, as a minimum, includes the following information:
a. Identifies the building or area by name and address that is under watch. b. The date and time each round or tour is completed, plus comments on what was observed.

Each entry shall contain the name and signature of the person conducting the watch. c. Fire watch logs shall be immediately accessible for review by the Fire Code Official. A copy of the fire watch log shall be retained by the owner or agent of the facility being protected.

8. To continue the fire watch until permission has been received from the Guadalupe Fire Department to terminate the fire watch activities.

9. Fire watch personnel shall not be assigned additional duties during their fire watch tour.

CHAPTER 5 FIRE SERVICE FEATURES
503 FIRE APPARATUS ACCESS ROADS
503.4.2 Removal of Obstructions. The Fire Code Officialshall have the power and authority to remove or cause to be removed, without notice, any vehicle, vessel, or thing parked or placed in violation of any or all sections of this code. The owner of any item so removed shall be responsible for all charges connected therewith.
503.4.3 Cost Recovery. The Fire Code Official is authorized to initiate any and all actions necessary to recover the costs of removal and storage of any vehicle, vessel, or thing parked or placed in violation of any or all sections of this code when the City provides the service either through the use of City resources or a contractor.
503.6.1 Electrically Operated Gates. All electrically operated gates that are installed across required fire access roads or pathways shall have a Knox brand access switch installed, which will open the gate.

The switch shall be installed so it will open the gate, and the gate will remain in the open position until reset by the Fire Department. The gate shall have a manual means of opening in the event of a power failure and shall be accessible from the exterior of the property. 503.6.2 Manually Operated Gates. All manually operated gates installed across required fire access roads or pathways, and which are locked, shall have a Knox brand padlock installed. The Knox padlock shall be integrated with any other lock in such a manner as to allow the gate to be opened by unlocking the Knox padlock only.
505 PREMISES IDENTIFICATION
505.1 Address Numbers. New and existing buildings shall have approved address numbers, building numbers or approved building identification placed in a position that is plainly legible and visible from the street or road fronting the property. These numbers shall contrast with their background. Address numbers shall be Arabic numerals or alphabet letters. Numbers shall be a minimum of 4 inches in height with a minimum stroke width of 0.5 inch (12.7 mm) for residential occupancies and 6 inches (152 mm) high with a minimum stroke width of 0.75 inch (19 mm) for commercial and industrial occupancies.

Numbers and/or letters of larger size may be required based on the size and design of the building or group of buildings. Where access is by means of a private road and the building cannot be viewed from the public way, a monument pole or sign or means shall be used to identify the structure. Address identification shall be maintained.
505.1.1 Rear Door Address Numbers. All commercial and industrial buildings with access via an alley or other similar roadways shall have the address number, unit or suite number, and street name

provided on or adjacent to the rear door of the building or tenant space. These numbers shall contrast with their background. Address and suite numbers shall be Arabic numerals or alphabet letters, shall be a minimum of 6 inches (152 mm) high with a minimum stroke width of 0.75 inch (19 mm). The street name shall be a minimum of 4 inches in height with a minimum stroke width of 0.5 inch (12.7 mm).

Numbers and/or letters of larger size may be required based on the size and design of the building or group of buildings.
505.1.2 Address Directory. All buildings, or groups of buildings served by an alley, private driveway or similar roadway system, shall be provided with an address directory at every entrance to the property.

The design of the directory shall be in accordance with standards set forth by the Fire Code Official. The directory shall be maintained by the property owner, Homeowner’s Association, or other individual or group in charge of the property.
506 KEY BOXES
506.1 Where Required. All new commercial occupancies shall have a Knox brand key box installed as directed by the Fire Code Official. Existing commercial occupancies shall install a Knox key box as directed by the Fire Code Official when a Building Permit is obtained for any work. The key box shall contain keys that will allow the Fire Department access to all portions of the building. The keys shall have a tag affixed identifying their purpose.
506.1.1 Locks. All gates or similar barriers across required Fire Department access roads or pathways shall have a Knox brand padlock installed in addition to any lock placed by the property owner or tenant.

The Knox padlock shall be integrated with any other lock in such a manner as to allow the gate to be opened by unlocking the Knox padlock only.
506.2 Key Box Maintenance. The owner, manager or other person in charge of a property shall notify the Fire Code Official and provide new key(s) when a lock is changed or re-keyed within 5 working days of the change. Upon notification, the Fire Code Official will make arrangements to place the new key(s) in the key box.
506.3 Responsibility. Correction and abatement of violations of section 506.1 and 506.1.1 of this code shall be the responsibility of the owner or the owner's authorized agent. 507 FIRE PROTECTION WATER SUPPLIES
507.5.4.1 Removal of Obstructions. The Fire Code Official shall have the power and authority to remove or cause to be removed, without notice, posts, fences, vehicles, growth, trash, storage, and other materials or objects or things parked or placed in violation of Section 507.5.4. The owner of any item so removed shall be responsible for all charges connected therewith. 507.5.4.2 Cost Recovery. The Fire Code Official is authorized to initiate any and all actions necessary to recover the costs of removal and storage of any posts, fences, vehicles, growth, trash, storage, and other

materials or objects or things parked or placed in violation of Section 507.5.4 when the City provides the service either through the use of City resources or a contractor. 507.5.5 Clear Space Around Hydrants. A 5-foot (1.5 m) clear space shall be maintained around the circumference of fire hydrants except as otherwise approved by the Fire Code Official. 509 FIRE PROTECTION AND UTILITY EQUIPMENT IDENTIFICATION AND ACCESS 509.1 Identification. Fire protection equipment shall be identified in an approved manner. Rooms containing controls for air-conditioning systems, sprinkler risers and valves, or other fire detection, suppression or control elements shall be identified for the use of the Fire Department. All signage shall be designed and installed in accordance with Guadalupe Fire Department Standards. 509.1.1 Utility Identification. Where required by the fire code official, gas shutoff valves, electric meters, service switches and other utility equipment shall be clearly and legibly marked to identify the unit or space that it serves. Identification shall be approved by the Fire Code Official, readily visible, and shall be maintained.
509.1.2 Sign Maintenance. All signs required by this code shall be maintained in a legible condition and replaced or repaired as required by the Fire Code Official.

CHAPTER 6 BUILDING SERVICES AND SYSTEMS
603 ELECTRICAL EQUIPMENT, WIRING AND HAZARDS
603.8 Temporary Wiring. Temporary wiring for electrical power and lighting installations is allowed for a period not to exceed 90 days upon issuance of a permit by the Fire Code Official and the Building Code Official. Temporary wiring methods shall meet the applicable provisions of the California Electrical Code.

Exception: Temporary wiring for electrical power and lighting installations is allowed during periods of construction, remodeling, repair or demolition of buildings, structures, equipment or similar activities. 605 FUEL-FIRED APPLIANCES
605.5.3 Portable Unvented Heaters. The use of portable unvented fuel-fired heating equipment shall be prohibited in all occupancies except where a permit has been issued by the Fire Code Official and the Building Code Official.

606 COMMERCIAL COOKING EQUIPMENT AND SYSTEMS
606.3.4.1 Hood Servicing. A certificate of inspection/service shall be forwarded to the Guadalupe Fire Department within 5 working days of completion of the 6-month service, or upon service rendered after the activation of any fire suppression system. The submission of the certificate of inspection service is the responsibility of the contractor performing the service. The certificate may be a copy of the invoice as long as it has the required information contained therein.

The certificate shall include:

1. The name, address, and phone number of the licensed contractor performing the service.

2. The name, address, and phone number of the business for which the service is being done.

3. Date and time of the service.

4. Make, model, and manufacturer of the system.

5. A detailed list of all work completed on the system (clean nozzles, replace links, recharge system).

6. Specific date of the previous service on the system.

7. The cleanliness of the hood and associated appliances.

8. Alterations to the system or appliances that cause the system to be out of compliance with the manufacturer’s specifications.

CHAPTER 9 FIRE PROTECTION SYSTEMS
901 GENERAL
901.7 Systems Out of Service. Where a required fire protection system is out of service, the Fire Code Official shall be notified immediately and, where required by the Fire Code Official, the building shall either be evacuated or an approved fire watch shall be provided for all occupants left unprotected by the shutdown until the fire protection system has been returned to service. Where utilized, fire watches shall comply with the provisions of Chapter 1, Sections 403.11.1.1, 403.11.1.2, 403.11.1.3, 403.11.1.4, and 403.11.1.5 of this code.
903 AUTOMATIC SPRINKLER SYSTEMS
903.2 Where Required. Approved automatic fire sprinkler systems in new buildings and structures shall be provided in the locations described in this section, regardless of construction type, occupancy separation walls or area separation walls.
903.2.1 Group A. All Group A-1, A-2, A-3, and A-4 occupancies shall be equipped with an automatic fire sprinkler system throughout the building.
903.2.2 Group B. All Group B occupancies shall be equipped with an automatic fire sprinkler system throughout the building when the gross floor area is more than 5,000 square feet.

903.2.2.1 Ambulatory Care Facilities. An automatic sprinkler system shall be installed throughout the building in all Group B ambulatory health care facility occupancies when either of the following conditions exist at any time:

1. Four or more care recipients are incapable of self-preservation.

2. One or more care recipients who are incapable of self-preservation are located at other than the level of exit discharge serving such an occupancy.
903.2.3 Group E. All Group E occupancies shall be equipped with an automatic fire sprinkler system throughout the building.
903.2.4 Group F. All Group F occupancies shall be equipped with an automatic fire sprinkler system throughout the building when the gross floor area is more than 2,500 square feet (233 m2). 903.2.4.1 Woodworking Operations. Refer to section 903.2.4. 903.2.6 Group I. All Group I occupancies shall be equipped with an automatic fire sprinkler system throughout the building.
903.2.7 Group M. All Group M occupancies shall be equipped with an automatic fire sprinkler system throughout the building when the gross floor area is more than 5,000 square feet. 903.2.9 Group S-1. All Group S-1 occupancies shall be equipped with an automatic fire sprinkler system throughout the building when the gross floor area is more than 2,500 square feet (233 m2). 903.2.22 Speculative Building Defined. Any F, M, or S occupancy required by this code to be equipped with automatic fire sprinklers throughout the building in which the tenant is not identified at the time of application for a building permit shall be considered a speculative building. 903.2.22.1 Speculative Building, Sprinkler System Design. Automatic fire sprinkler systems in speculative buildings as defined in Section 903.2.20 with an interior clear height of 12 feet or less shall have a minimum design of .20 gallons per minute over a 2,500 square foot design area (.20/2500). 903.2.22.2 Speculative Building, Sprinkler System Design. Automatic fire sprinkler systems in speculative buildings as defined in Section 903.2.20 with an interior clear height of more than 12 feet shall be designed as set forth in Section 206.2.2 of this code (High-piled storage). 903.2.23 Additions or alterations. Automatic fire sprinkler system throughout the building shall be provided when:
a. Additions to existing buildings adds more than 50% of the existing square footage to the structure and results in a total square footage in excess of 1,500 (one thousand five hundred) square feet;
b. Alterations to Group A, B as described in section 903.2.2. E, F, and S encompass more than 50% of the existing square footage of the structure or is in excess of 1,500 (one thousand

five hundred) square feet where there is a change of occupancy to a more hazardous use as determined by the Building Official or Fire Chief;
c. Alterations to Group B other than those described in Section 903.2.2 and M encompass more than 50 % of the existing square footage of the structure or is in excess of 3,000 (three thousand) square feet or where there is change of occupancy to a more hazardous use as determined by the Building Official or Fire Chief;
d. Alterations to Group R encompass more than 50% of the existing square footage of the structure or is in excess of 2,000 (two thousand) square feet or where there is a change of occupancy to a more hazardous use as determined by the Building Official or the Fire Chief; e. These requirements will be applicable to the combined square footage of all building permit issued for the address or site within the last five years. Buildings or structures separated by less than ten (10) feet shall be considered as a single building or structure. 904 ALTERNATIVE AUTOMATIC FIRE-EXTINGUISHING SYSTEMS
904.14.6 Wood or Wood Product Fueled Cooking. All commercial-type cooking equipment using wood or wood products as fuel shall be protected by an automatic sprinkler system within the hood and the ductwork. The water supply may be provided from the building’s fire sprinkler system, or the domestic water supply. The minimum water flow calculation shall be 20 gallons per minute (76 gpm) at 7 psi (.5 bar) for each head. There shall be a separate control valve for the fire sprinkler system protecting the commercial-type cooking equipment.
907 FIRE ALARM AND DETECTION SYSTEMS
907.11 False Alarms. The Fire Code Official is authorized to seek cost recovery for a Fire Department response to an alarm system activation which is determined to be a false alarm caused by system malfunction, system misuse or other non-emergency causes. 907.11.1 False Alarm Frequency. The cost recovery fee will be charged for all responses after the second false alarm in a calendar year.
907.11.2 False Alarm Fee. The amount of the cost recovery fee will be as set forth in the City of Guadalupe User Fees Schedule. Additional fees may be charged for extraordinary circumstances. 907.11.3 False Alarm—Legal Action. The Fire Code Official may initiate civil or criminal action as set forth in Guadalupe Municipal Code Chapters 1.10 and 1.11.
912 FIRE DEPARTMENT CONNECTIONS
912.5.5 Existing Buildings. All existing buildings equipped with a Fire Department connection, fire sprinkler riser, standpipe connections, and fire pump connections shall have installed signs as described in Section 912.5.

912.8 Clear Space Makings. A 5-foot (1.5 m) clear space shall be maintained in front of the fire department connection when placed directly in front of a parking area or road. Where the clearance required intrudes into the road or parking area, the Fire Lane Curb Painting Requirements in section D103.6.4 must be applied.

CHAPTER 10 MEANS OF EGRESS
1013 EXIT SIGNS
1013.7 Floor Level Exit Signs. All buildings, or portions of a building with an occupant load of 50 or more shall be provided with floor level exit signs. The floor level exit signs shall be readily visible from any direction of egress travel. Access to exits shall be marked by readily visible floor level exit signs in cases where the exit or the path of egress travel is not immediately visible to the occupants. Floor level exit sign placement shall be such that no point in a corridor is more than 100 feet (30.5 m) or the listed viewing distance for the sign, whichever is less, from the nearest visible exit sign. 1013.7.1 Installation. Floor level exit signs shall be installed so the bottom of the sign is not less than 6 inches (152 mm), nor more than 12 inches (305 mm) above the adjacent grade. The sign shall be installed on the latch side of exit doors and shall be not less than 4 inches from the door opening. 1013.7.2 Floor Level Exit Sign Illumination. All floor level exit signs shall be illuminated as set forth in Sections 1013.3, 1013.5 and 1013.6.
1028 EXIT DISCHARGE
1028.5.1 Access Way Design. Required exits for all buildings shall be provided with an all-weather surface walkway from the exit discharge to a public way or safe dispersal area as defined in Section 1028.5. The minimum design for the all-weather surface walkway shall be:

1. 48 inches in width (1.2 m) (Greater width may be required based on building occupant load)

2. 84 inches clear overhead (2.5 m)

3. Asphalt or concrete material
1030 ASSEMBLY
1030.18 Bench Seating. Where bench seating is used, the number of persons for exiting design shall be based on one person for each 18 inches (457 mm) of length of the bench. For occupant load and seat assignment, the number of persons shall be based on one person for each 24 inches (610 mm) of length of the bench. Fractional measurements shall be rounded down to the next lowest occupant number.

CHAPTER 11 CONSTRUCTION REQUIREMENTS FOR EXISTING BUILDINGS 1104 MEANS OF EGRESS FOR EXISTING BUILDINGS

1104.3.1 Floor Level Exit Signs. All existing buildings with an occupant load of more than 50 persons shall provide floor level exit signs as set forth in Sections 1013.7, 1013.7.1 and 1013.7.2 when the owner or the owner’s agent applies for a building permit to perform work with a value in excess of $10,000.00. 1104.26 Access Way Design. All existing buildings shall provide an all-weather surface walkway from the exit discharge to a public way or safe dispersal area as defined in Section 1028.5 when the owner or the owner’s agent applies for a building permit to perform work with a value in excess of $10,000.00. The minimum design for the all-weather surface walkway shall be:

1. 48 inches in width (1.2 m) (greater width may be required based on building occupant load).

2. 84 inches clear overhead (2.5 m).

3. Asphalt or concrete material.

CHAPTER 23 MOTOR FUEL DISPENSING FACILITIES AND REPAIR GARAGES 2306 FLAMMABLE AND COMBUSTIBLE LIQUID MOTOR FUEL-DISPENSING FACILITIES 2306.2.3.1 Fire Protection. All above-ground storage tanks for Class I, II, IIIA, and IIIB liquids shall be protected by an automatic water spray system designed and installed in accordance with NFPA Standard #15. The system shall be activated by a manual pull station and heat detectors proportionally spaced around the tank within the containment area.

Exception: Above-ground storage tanks with a fire resistance rating of 2 hours or more. 2306.2.3.2 Conditional Use Permit. Storage of Class I, II, IIIA, or IIIB liquids in above-ground tanks is not permitted in all areas of the City, except those zoning districts where the use is permitted, subject to approval of a conditional use permit and a valid conditional use permit is in effect. 2306.2.3.3 Operational Permit. An annual operational permit is required as set forth in section 105.1.6, 105.5.18, and 105.5.33.
2306.4 Physical Protection. Guard posts complying with Section 312 or other approved means shall be provided to protect above-ground tanks against impact by a motor vehicle. 2306.5.1 Identification Placard for Above-ground Tanks. All above-ground tanks containing Class I, II, IIIA, or IIIB liquids shall have an identification placard permanently affixed to it. The identification placard shall have the following information:
a. Tank owner’s name.
b. Physical address of the tank installation.
c. Product contained in tank.
d. Tank capacity.
2307 LIQUEFIED PETROLEUM GAS MOTOR FUEL-DISPENSING FACILITIES 2307.1.1 Conditional Use Permit. Storage, dispensing and use of liquefied petroleum gas in aboveground tanks exceeding 450 gallons is not permitted in all areas of the City, except those zoning districts

where the use is permitted subject to approval of a conditional use permit and a valid conditional use permit is in effect.
2307.1.2 Identification Placard for Above-ground Tanks. All above-ground tanks containing liquefied petroleum gas exceeding 450 gallons shall have an identification placard permanently affixed to it. The identification placard shall have the following information:
a. Tank owner’s name.
b. Physical address of the tank installation.
c. Product contained in tank.
d. Tank capacity.
2307.1.3 Operational Permit. An annual operational permit is required as set forth in section 105.1.6, 105.5.28, and 105.5.33.
2308 COMPRESSED NATURAL GAS MOTOR FUEL-DISPENSING FACILITIES 2308.1.1 Conditional Use Permit. Storage, dispensing, and use of compressed natural gas in aboveground tanks is not permitted in all areas of the City, except those zoning districts where the use is permitted, subject to approval of a conditional use permit and a valid conditional use permit is in effect. 2308.1.2 Identification Placard for Above-ground Tanks. All above-ground tanks containing compressed natural gas shall have an identification placard permanently affixed to it. The identification placard shall have the following information:
a. Tank owner’s name.
b. Physical address of the tank installation.
c. Product contained in tank.
d. Tank capacity.
2308.1.3 Operational Permit. An annual operational permit is required as set forth in section 105.1.6 and 105.5.33.
2309 HYDROGEN MOTOR FUEL-DISPENSING AND GENERATION FACILITIES 2309.1.1 Conditional Use Permit. Storage, dispensing, generation, and use of hydrogen gas in aboveground tanks is not permitted in all areas of the City, except those zoning districts where the use is permitted, subject to approval of a conditional use permit and a valid conditional use permit is in effect. 2309.1.2 Identification Placard for Above-ground Tanks. All above-ground tanks containing hydrogen gas shall have an identification placard permanently affixed to it. The identification placard shall have the following information:
a. Tank owner’s name.
b. Physical address of the tank installation.
c. Product contained in tank.
d. Tank capacity.

2309.1.3 Operational Permit. An annual operational permit is required as set forth in section 105.1.6 and 105.5.33.

CHAPTER 31 TENTS AND OTHER MEMBRANE STRUCTURES
3103 TEMPORARY TENTS AND MEMBRANE STRUCTURES
3103.2 Approval Required. Tents and membrane structures having an area in excess of 400 square feet (37 m2) shall not be erected, operated, or maintained for any purpose without first obtaining a permit and approval from the Fire Code Official.

Exceptions:

1. Tents used exclusively for recreational camping purposes. 3103.4 Permit. An operational permit is required as set forth in sections 105.5 and 105.6 prior to occupation.

CHAPTER 32 HIGH PILED COMBUSTIBLE STORAGE
3206 GENERAL FIRE PROTECTION AND LIFE SAFETY FEATURES
3206.2.2 Speculative Building. Group F, M, and S speculative buildings as defined in Section 903.2.22 having an interior clear height greater than 12 feet where high piled storage may accrue shall comply with this chapter. The storage height shall be determined by subtracting 48 inches from the highest point of the roof above each system for ESFR and 30 inches from the highest point of the roof above each system for area density applications.
3206.2.3 Minimum Sprinkler Design Requirements for Speculative Buildings. The design of the automatic sprinkler system for speculative buildings, as defined in Sections 903.2.22.2 and 3206.2.2, shall be based on the storage of a carton of Class A non-expanded plastic to the available storage height.

The storage height shall be determined by subtracting 48 inches from the highest point of the roof above each system for ESFR and 30 inches for area density applications.

CHAPTER 33 FIRE SAFETY DURING CONSTRUCTION AND DEMOLITION 3305 IGNITION SOURCE CONTROL
3305.1.1 Temporary Heating Equipment. The use of temporary fuel-fired heating equipment shall be prohibited in all occupancies except where a permit has been issued by the Fire Code Official and Building Code Official.
3306 FIRE PROTECTION SYSTEMS AND DEVICES

3306.7 Fire Watch. When required by the Fire Code Official for building demolition that is hazardous in nature, qualified personnel shall be provided as an on-site fire watch. The Fire Watch shall meet the requirements set forth in Chapter 4, Sections 403.11.1.1, 403.11.1.2, 403.11.1.3, 403.11.1.4, and 403.11.1.5 of this code
3307.1.1 REQUIRED ACCESS
3307.1.4 Inspection. The Fire Code Official shall inspect and approve the Fire Department access prior to the issuance of a building permit.

CHAPTER 56 EXPLOSIVES AND FIREWORKS
5605 MANUFACTURE, ASSEMBLY AND TESTING OF EXPLOSIVES, EXPLOSIVE MATERIALS AND

FIREWORKS
5605.1.1 Manufacturing of Fireworks and Pyrotechnic Special Effects Materials. The manufacturing of fireworks is prohibited except when licensed by the California State Fire Marshal and permitted by the Guadalupe Fire Department. For the purpose of this chapter, the altering of any firework from its original design shall be considered manufacturing.
5607 BLASTING
5607.1.1 Storage and Use of Explosives and Blasting Agents. The storage of explosive and blasting agents is prohibited in all areas of the City, except those zoning districts where the use is permitted, subject to approval of a conditional use permit and a valid conditional use permit is in effect, except for temporary storage for use in connection with approved blasting operations provided a permit has been issued by the City for the temporary use. However, this prohibition shall not apply to wholesale and retail stock of small arms ammunition, explosive bolts, explosive rivets or cartridges for explosive actuation power tools in quantities involving less than 500 pounds of explosive material. 5608 FIREWORKS DISPLAY
5608.1.2 Displays. Permits issued by the Guadalupe Fire Department are required to conduct any fireworks display. Permit application to the City shall be made not less than 15 work days prior to the scheduled date of the display. At the time of permit application, the Fire Chief shall be consulted regarding the requirements for standby fire apparatus.
5614 FIREWORKS SALES
5614.1 Safe and Sane Fireworks. The manufacture, display, sales, storage, possession, use and handling of safe and sane fireworks shall be in accordance with the California Code of Regulations and this chapter. Safe and sane fireworks are those fireworks as defined by Section 12529 of the California Health and Safety Code.

5614.2 Date and Hours of Sale and Use. Safe and sane fireworks may be sold during the period beginning at twelve noon (12:00 p.m.) on the 28th day of June and ending at eleven fifty-nine (11:59 p.m.) on the 4th day of July each year pursuant to the provisions of Section 12599, California Health and Safety Code.

Daily opening and closing hours of each fireworks stand are optional as long as they fall within the times specified above. Safe and sane fireworks, as defined by Section 12529 of the California Health and Safety Code, may only be used between the hours of 11:00 a.m. and 11:59 p.m. on the 4th of July. 5614.2.1 License—Required. No person or organization shall possess, use, sell or offer for sale any fireworks of any kind without having applied for and received a license issued by the California State Fire Marshal’s Office, as provided for in Section 12688, California Health and Safety Code. 5614.2.2 Permit—Required. No person or organization shall possess, use, sell or offer for sale any fireworks of any kind without having applied for and received a permit from the Guadalupe Fire Department.
5614.2.3 Permit—Issuance. No permits for sale of safe and sane fireworks will be issued to any person, firm or corporation except those nonprofit associations or corporations organized primarily for veteran, patriotic, welfare, civic betterment, or charitable purposes. Proof of nonprofit status may be required.

Each organization must have its principal and primary meeting place within the corporate city limits of the City of Guadalupe. No organization may receive more than one permit for one location for the sale of safe and sane fireworks during any one calendar year. a. The maximum number of permits that will be issued pursuant to this article shall not exceed one permit for each 6,000 residents of the City, or fraction thereof, based on the official City census.
b. If the number of applications exceeds the number of permits to be issued, the permittees during the preceding year shall have first priority for the available permits. Those organizations applying that are beyond the maximum number of permits issued may be put on a waiting list maintained by the Guadalupe Fire Department, if they so request.

EXCEPTIONS: Any prior permittee who fails to operate and any prior permittee who violates any rule, ordinance, regulation, or law while operating a fireworks stand in any one year shall be deemed to have withdrawn from the fireworks sale program. Applicants who are deemed to have withdrawn from the program may apply in writing to the Fire Chief for reinstatement. Prior permit holders may be returned to the program on the waiting list upon demonstrating that failure to timely submit was due to excusable negligence and the applicant otherwise meets the qualifications of this code. 5614.2.4 Permit Application. All applicants for a permit to sell fireworks shall:

1. Furnish the Guadalupe Fire Department a list of names of the organizations and the name, address, and phone number of the individual in each organization who is responsible for the retail sales of the fireworks. This list will be used to send the appropriate letters and application forms to the current list of permit applicants. The list shall be in the possession of the

Guadalupe Fire Department no later than May 15th of each year so the appropriate letter and forms may be sent to the permit applicants in a timely fashion.

2. Submit a written application to sell fireworks on the form provided by the City.

3. Submit a copy of a certificate of insurance in the amount of $1,000,000.00 for public liability and property damage, indicating riders attached to the policy designating the City of Guadalupe as an additional insured.

4. Submit a “letter of permission” signed by the property owner or their authorized agent permitting the organization to erect a fireworks stand on the owner’s property.

5. Complete and submit all required paperwork to the Guadalupe Fire Department on or before June 5th for sales to commence during the period June 28th to July 4th of the same year.

Failure to submit a complete application package by June 5th shall be deemed a withdrawal from the fireworks sale program. Applicants who are deemed to have withdrawn from the program may apply in writing to the Fire Chief for reinstatement. The applicant may be returned to the program on the waiting list upon demonstrating that failure to timely submit was due to excusable negligence and the applicant otherwise meets the qualifications of this code.
5614.2.5 Fireworks Stand Construction. Sales of safe and sane fireworks shall only be from temporary fireworks stands. Sale from any other building or structure is prohibited. Temporary fireworks stands shall be subject to the following conditions:

1. No stand shall be located within 25 feet (7.4 m) of a building or within 100 feet (31 m) of any flammable or combustible liquid or flammable gas dispensing or storage operation.

2. Fireworks stands need not comply with the Building Code. All stands must be constructed and erected in a manner that will reasonably ensure the safety of the attendants and customers.

The stands are subject to inspection by the Guadalupe Fire Department at any time and decisions as to the reasonableness of safety and construction of the stand will be determined through these inspections.

3. Fireworks stands need not obtain a conditional use permit.

4. All fireworks stands shall be erected only on commercial or industrial zoned property within the city limits of Guadalupe. No fireworks stand shall be constructed or erected on residentially zoned property.

5. Stand locations shall be approved by the Fire Department prior to construction.

6. Permittees must provide a “letter of permission” from the property owner or their authorized agent approving the use of the property for fireworks sale.

7. Fireworks stands in excess of 24 feet (7.3 m) in length shall have a minimum of 2 exits. 5614.2.6 Fireworks Stand Operation. No person shall be paid any consideration for erecting, constructing, dismantling or operating a fireworks stand.

1. No person shall be paid any consideration for selling or otherwise participating in the sale of fireworks at a stand. This includes constructing, erecting, or dismantling a fireworks stand.

2. While occupied, all fireworks stands shall have a minimum of one 2A rated water pressure fire extinguisher with a current service tag within the stand. The pressurized water type of fire extinguisher shall not be substituted with any other type.

3. All weeds, trash and other combustible debris shall be cleared for a distance of at least 25 feet (7.4 m) from the stand in all directions.

4. Doors of the stands shall not be locked on the outside. The door may be provided with a latch on the inside, provided it does not cause undue delay to anyone exiting in an emergency.

5. The interior of the stand shall be maintained in such a manner as to provide a clear pathway from any point inside to an exit at all times.

6. All electrical power to the stands shall be installed and maintained in a safe manner.

Generators and their fuel shall be stored and operated a minimum of 25 feet (7.4 m) from the stand.

7. No heating appliance shall be permitted inside of a stand or within 25 feet (7.4 m) of a stand.

8. No motor vehicle shall be parked within 25 feet (7.4 m) of a stand.

Exception: Vehicles operated by a permitted organization to pick up or deliver fireworks may be parked within 25 feet (7.4 m) of a stand.

9. All fireworks stands shall be completely emptied of fireworks and the fireworks shall be transported to the central storage facility when the stand is not open for business.

10. No person shall sleep or otherwise occupy a fireworks stand in lieu of removing the fireworks from the stand when not open for business.

11. The temporary fireworks stand will be dismantled and removed from its location not later than the Sunday of the weekend following the 4th of July of each year. It shall be the responsibility of the permittee to remove the stand. If the removal of the stand is not accomplished by this deadline, the City of Guadalupe shall remove and store it until it is redeemed by the payment of appropriate fees and interest thereon, if applicable due to the passage of time before payment is received, for its removal and storage.

5614.2.7 Fireworks Storage, Transportation and Delivery. Storage, transportation and delivery of fireworks shall be in accordance with this chapter.

1. Fireworks storage is authorized in only 2 locations: at the fireworks stands when open for business or at the City-approved centralized storage facility.

2. Fireworks wholesale distributors are responsible for obtaining an approved central storage facility. A Fire Department permit is required for the central storage facility.

3. The central storage facility shall be located only in commercial or industrial zoned areas only.

The central storage facility shall not be located on residentially zoned properties.

4. Fireworks stored in the central storage facility shall be outside of a building. Fireworks shall not be stored within a building.

5. The City of Guadalupe shall not be responsible for any costs or liabilities associated with the central storage facility.

6. The central storage facility shall be enclosed by a fence not less than 6 feet (1.9 m) in height on all sides.
a. Vehicles, trailers, or storage containers shall be placed within the storage facility so that there is a minimum distance of 20 feet (6.1 m) from the perimeter fence. b. Vehicles, trailers, and storage containers shall be kept locked at all times except when fireworks are being loaded and unloaded.
c. The central storage facility shall be approved by the Chief of Police.

d. “No Smoking” signs shall be posted on the perimeter fence and at the entrance to the central storage facility. Signs on the perimeter fencing shall be placed every 30 feet (9.1 m).

7. Fireworks shall be transported directly from the central storage facility to the fireworks stands with no stops in between. Transportation shall be by wholesalers or permittees only.

8. The Fire Chief may impose additional conditions as deemed appropriate. 5614.2.8 Violations. Violations of any provision of this chapter shall be a misdemeanor, and upon conviction thereof shall be punished by a fine not to exceed $1,000.00, or by imprisonment in the County jail for a period not exceeding 180 calendar days, or both such fine and imprisonment. An administrative citation may also be issued as set forth in Chapters 1.10 and 1.11 of the Guadalupe Municipal Code. The fine for an administrative citation shall not exceed $1,000.00 per violation, per day.

CHAPTER 57 FLAMMABLE AND COMBUSTIBLE LIQUIDS
5701 GENERAL
5701.6 Locations Where Above-ground Tanks Are Prohibited. Storage of Class I, II, IIIA, or IIIB liquids in above-ground tanks outside of buildings is not permitted in all areas of the City, except those zoning districts where the use is permitted, subject to approval of a conditional use permit and a valid conditional use permit is in effect.
5701.7 Identification Placard for Above-ground Tanks. All above-ground tanks containing Class I, II, IIIA, or IIIB liquids shall have an identification placard permanently affixed to it. The identification placard shall have the following information:
a. Tank owner’s name.
b. Physical address of the tank installation.
c. Product contained in tank.
d. Tank capacity.

CHAPTER 58 FLAMMABLE GASES AND FLAMMABLE CRYOGENIC FLUIDS 5801 GENERAL
5801.3 Conditional Use Permit. The storage, use, and dispensing of flammable gases in above-ground containers exceeding 450 gallons is not permitted in all areas of the City, except those zoning districts where the use is permitted, subject to approval of a conditional use permit and a valid conditional use permit is in effect.
5801.4 Identification Placard for Above-ground Tanks. All above-ground tanks containing flammable gases shall have an identification placard permanently affixed to it. The identification placard shall have the following information:
a. Tank owner’s name.
b. Physical address of the tank installation.

c. Product contained in tank.
d. Tank capacity.

CHAPTER 61 LIQUEFIED PETROLEUM GASES
6101 GENERAL
6101.3 Construction Documents. Where a single LP-gas container is more than 450 gallons (1,704 L) in water capacity or the aggregate water capacity of LP-gas containers is more than 1,000 gallons (3,786 L), the installer shall submit construction documents for such installation. 6104 LOCATION OF LP-GAS CONTAINERS
6104.5 Conditional Use Permit. The storage, use, and dispensing of liquefied petroleum gas in aboveground containers exceeding 450 gallons (1,704 L) is not permitted in all areas of the City, except those zoning districts where the use is permitted, subject to approval of a conditional use permit and a valid conditional use permit is in effect.
6104.5.1 Identification Placard for Above-ground Tanks. All above-ground tanks containing more than 450 gallons (1,704 L) of liquefied petroleum gas shall have an identification placard permanently affixed to it. The identification placard shall have the following information:
a. Tank owner’s name.
b. Physical address of the tank installation.
c. Product contained in tank.
d. Tank capacity.

15.08.030 California Fire Code Appendices adopted.

The following Appendices of the California Fire Code, 2025 edition, as published by the State of California, and subsequent editions as adopted by the State of California, are adopted by reference, subject to the additions, deletions, and amendments set forth in this chapter.

Appendix ‘A’ “Board of Appeals” is adopted in its entirety with the following additions and amendments:

SECTION A 101 GENERAL
A101.1 Scope. A Board of Appeals shall be established within the jurisdiction for the purpose of hearing applications for modification of the requirements of the California Fire Code as adopted and amended by the City of Guadalupe pursuant to the provisions of Section 108 of the California Fire Code.

The Board shall be established and operated in accordance with this section, and shall be authorized to hear evidence from appellants and the Fire Code Official pertaining to the application and intent of this code for the purpose of issuing orders pursuant to these provisions.

A101.3 Membership of Board. The membership of the board shall consist of 3 voting members having the qualifications established by this section. Members shall be nominated by the Fire Chief, subject to confirmation by a majority vote of the City Council.

A101.3.1 Appeals Board Members. The Board of Appeals may be comprised of any combination of the following but must have at least one general industry or businessperson as described in subsection A101.3.1.5 of this section.

A101.3.1.1 Design Professional. Practicing design professional registered in the practice of engineering or architecture in the State of California.

A101.3.1.2 Fire Protection Engineering Professional. Qualified engineer, technologist, technician or safety professional trained in fire protection engineering, fire science or fire technology. Qualified representatives in this category shall include fire protection contractors and certified technicians engaged in fire protection system design.

A101.3.1.3 Industrial Safety Professional. Registered industrial or chemical engineer, certified hygienist, certified safety professional, certified hazardous materials manager or comparably qualified specialist experienced in chemical process safety or industrial safety.

A101.3.1.4 General Contractor. Contractor regularly engaged in the construction, alteration, maintenance, repair, or remodeling of buildings or building services and systems regulated by the code.

A101.3.1.5 General Industry or Business Representative. Representative of business or industry not represented by a member from one of the other categories of Board members described above.

A101.3.1.6 Terms of Office. Members are volunteers and shall serve without remuneration or compensation and shall serve at the pleasure of the City Council.

Appendix B, Fire-Flow Requirements for Buildings, is adopted in its entirety.

Appendix C, Fire Hydrant Number and Distribution, is adopted in its entirety, except Table. C102.1 is replaced with the following table:

TABLE C102.1

NUMBER AND DISTRIBUTION OF FIRE HYDRANTS

FIRE-FLOW

REQUIREMENT (GPM)

MINIMUM NUMBER OF

HYDRANTS
HYDRANT SPACINGa, b
(feet)

MAXIMUM DISTANCE

FROM ANY POINT ON

STREET OR ROAD

FRONTAGE TO A

HYDRANT
1,750 or less 1 400 200
2,000 to 2,250 2 400 200
2,500 3 400 200
3,000 3 400 200
3,500 to 4,000 4 350 200
4,500 to 5,000 5 300 150
5,500 6 300 150
6,000 6 250 150
6,500 to 7,000 7 250 150
7,500 or more 8 or morec 200 120
a. Where streets are provided with median dividers which can be crossed by firefighters pulling hose lines, or where arterial streets are provided with 4 or more traffic lanes and have a traffic count of 30,000 vehicles per day, hydrant spacing shall average 350 feet on each side of the street and be arranged on an alternating basis up to a fire-flow requirement of 7,000 gallons per minute and 300 feet for higher flow requirements.
b. Where new water mains are extended along streets where hydrants are not needed for protection of structures or similar fire problems, fire hydrants shall be provided at a spacing not to exceed 600 feet for transportation hazards.
c. One hydrant for each 1,000 gallons per minute or fraction thereof. Flow requirements will be rounded up to the next highest 1,000 gallon per minute increment.

Appendix ‘D’ “Fire Apparatus Access Roads” is adopted in its entirety. With the following additions.

D103.6.3 Fire Lane Sign Requirements. No Parking/Fire Lane signs must follow these guidelines:
a. The CVC Code 22500.1 (CVC 22500.1) must be imprinted on the bottom of the sign. b. All lettering shall be red on a white reflective background no smaller than 2 inches in height. c. The sign shall be no smaller than 12 inches wide by 18 inches high. d. The sign shall be securely mounted facing the direction of travel and clearly visible to oncoming traffic entering the designated area. Signs shall be of durable material. e. Signs shall be installed at all driveway entrances and at intervals of not less than 100 feet along all designated fire lanes.

D103.6.4 Fire Lane Curb Painting Requirements. Where a curb exists adjacent to a fire lane, the top and face of the curb shall be painted with red traffic paint. Where the curb is discontinued, a red stripe and stencil as described below shall be painted to define the fire lane. Red curbs, red stripes, and white stencils must be maintained in good condition and follow these guidelines:
a. The face of the curb shall be stenciled with the words: NO PARKING FIRE LANE in white block letters a minimum 4 inches in height.
b. The stencil must be painted on the FACE of the curb. Exception: Under circumstances where the curb height is less than 4 inches, the stencil may appear on the top of the curb. c. The stencil must appear every 50 feet or less, depending on the configuration of the fire lane. (Where a small island cannot contain both phrases, FIRE LANE must appear; NO PARKING may be omitted.
d. Where no curb exists adjacent to the fire lane, the edge of the fire lane shall be marked with an 8-inch-wide red stripe. In addition, a diagonal 8-inch-wide red stripe may be required between the edges of the fire lane, with the diagonal stripe connecting the stripes or curbs at the edges of the fire lane. Spacing of the diagonal stripe is every 50 feet. e. The stripe shall be stenciled with the words NO PARKING FIRE LANE in white block letters, minimum 4 inches in height.
f. The stencil must appear every 50 feet or less, depending on the configuration of the fire lane. If the fire lane is less than 50 feet, the stencil must appear at the beginning and end of the fire lane.

Appendix ‘E’ “Hazard Categories” is adopted in its entirety.

Appendix ‘F’ “Hazard Ranking” is adopted in its entirety.

Appendix ‘G’ “Cryogenic Fluids – Weight and Volume Equivalents” is adopted in its entirety.

Appendix ‘I’ “Fire Protection Systems – Noncompliant Conditions” is adopted in its entirety.

Appendix ‘K’ “Construction Requirements for Existing Ambulatory Care Facilities” is adopted in its entirety.

Appendix ‘N’ “Indoor Trade Shows and Exhibitions” is adopted in its entirety.

Section 4. Publication and Effective Date. Within fifteen (15) days after passage, the City Clerk shall cause this ordinance to be posted in three publicly accessible locations in the City. This ordinance shall go into effect and be in full force and effect at 12:01 a.m. on January 1, 2026.

Section 5. Savings and Interpretation Clause. This ordinance shall not be interpreted in any manner to conflict with controlling provisions of state law, including, without limitation, the Government Code of the State of California. If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. If this ordinance, or any section, subsection or clause of this ordinance shall be

deemed unconstitutional or invalid as applied to a particular appeal, the validity of this ordinance and its sections, subsections and clauses in regards to other contracts, shall not be affected.

Section 6. 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 9th day of June 2026 by the following roll call vote:

MOTION: AMELIA M. VILLEGAS / WHITNEY FURNESS
AYES: 5 Councilmembers: Costa Jr., Hernandez, Julian, Furness, Villegas NOES: 0
ABSENT: 0
ABSTAINED: 0
PASSED AND ADOPTED at a regular meeting of the City Council on the 23rd day of June 2026 by the following vote:

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:
__________________________________ ________________________________ Judy Wilson, City Clerk Ariston Julian, Mayor
APPROVED AS TO FORM:
___________________________________
Wendy Stockton, Assistant City Attorney

Agenda Item No. 6G

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of June 23, 2026
_______________________________ _________________________________ Prepared by: Approved by:

Philip F. Sinco, City Attorney David Trujillo, City Administrator SUBJECT: Second Reading of Ordinance No. 2026-528 of the City of Guadalupe, California, adding Chapter 3.34 to Title 3 of the Guadalupe Municipal Code Establishing a Cannabis Business Tax
RECOMMENDATION:

That the City Council adopt, on the second reading, Ordinance 2026-528, an ordinance to establish a cannabis business tax subject to the approval of the voters.

BACKGROUND:

The City Council introduced Ordinance No. 2026-528 at its meeting on June 9, 2026. This constitutes the second reading of the ordinance.

ATTACHMENTS

1. Ordinance No. 2026-528 entitled “An Ordinance of the City of Guadalupe, California, Adding Chapter 3.34 to Title 3 of the Guadalupe Municipal Code Establishing a Cannabis Business Tax.”
Philip F. Sinco
Cannabis Business Tax Ordinance

ORDINANCE NO. 2026-528
AN ORDINANCE OF THE CITY OF GUADALUPE, CALIFORNIA ADDING CHAPTER 3.34 (CANNABIS BUSINESS TAX) TO TITLE 3 OF THE GUADALUPE MUNICIPAL CODE ESTABLISHING A TAX ON

CANNABIS BUSINESS ACTIVITIES WITHIN THE CITY
THE PEOPLE OF THE CITY OF GUADALUPE DO ORDAIN AS FOLLOWS:

SECTION 1. CODE AMENDMENT. Chapter 3.34 is added to Title 3 of the Guadalupe Municipal Code to read as follows:

CHAPTER 3.34

3.34.010 Title.

3.34.020 Authority and purpose.

3.34.030 Intent.

3.34.040 Definitions.

3.34.050 Tax imposed.

3.34.060 Registration, reporting, and remittance of tax.

3.34.070 Payments and communications – timely remittance.

3.34.080 Payment – when taxes deemed delinquent.

3.34.090 Notice not required by City.

3.34.100 Penalties and interest.

3.34.110 Refunds and credits.

3.34.120 Refund procedures.

3.34.130 Personal cultivation not taxed.

3.34.140 Administration of the tax.

3.34.150 Appeal procedures.

3.34.160 Enforcement – action to collect.

3.34.170 Apportionment.

3.34.180 Constitutionality and legality.

3.34.190 Audit and examination of premises and records.

3.34.200 Other licenses, permits, taxes or charges.

3.34.210 Payment of tax does not authorize unlawful business.

3.34.220 Deficiency determinations.

3.34.230 Failure to report – nonpayment, fraud.

3.34.240 Tax assessment – notice requirements.

3.34.250 Tax assessment – hearing, application, and determination.

3.34.260 Relief from taxes – disaster relief.

3.34.270 Conviction for violation – taxes not waived.

3.34.280 Violation deemed misdemeanor.

3.34.290 Severability.

3.34.300 Remedies cumulative.

3.34.310 Amendment or modification.

3.34.010 Title.

ATTACHMENT 1
Cannabis Business Tax Ordinance

This ordinance shall be known as the Cannabis Business Tax Ordinance (“Ordinance”).

This Ordinance shall be applicable in the City of Guadalupe, California which shall be referred to herein as “City.”

3.34.020 Authority and Purpose.

The purpose of this Ordinance is to adopt a tax, for revenue purposes, pursuant to Sections 37101 and 37100.5 of the California Government Code, upon cannabis businesses that engage in business in the City which shall be referred to herein as the “cannabis business tax.” The cannabis business tax is levied based upon business gross receipts. It is not a sales and use tax, a tax upon income, or a tax upon real property and shall not be calculated or assessed as such. The cannabis business tax is a general tax enacted solely for general, governmental purposes of the City and not for specific purposes. All of the proceeds from the tax imposed by this chapter shall be placed in the City's general fund and be available for any lawful City purpose.

3.34.030 Intent.

The intent of this Ordinance is to levy a tax on all cannabis businesses that operate in the City, regardless of whether such business would have been legal at the time this chapter was adopted. Nothing in this chapter shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken.

3.34.040 Definitions.

The following words and phrases shall have the meanings set forth below when used in this chapter:

A. “Arm's length transaction" means a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.

B. “Business” shall include all activities engaged in or caused to be engaged in within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer.

C. “Calendar year” means January 1 through December 31, of the same year.

D. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the Cannabis Business Tax Ordinance

separated resin, whether crude or purified, obtained from cannabis. “Cannabis” shall not include industrial hemp, unless otherwise specified or unless it meets the definition of a Cannabis Product under 3.12.040(F)
E. “Cannabis business” means any business activity involving cannabis, including but not limited to cultivating, transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, testing, dispensing, retailing and wholesaling of cannabis, cannabis products or of ancillary products and accessories, whether or not carried on for gain or profit.

F. “Cannabis business tax” means the tax due pursuant to this chapter for engaging in a cannabis business in the City.

G. “Cannabis product” means a product containing cannabis or cannabis concentrate and includes, but is not limited to, edible, topical, and inhaled products, and any product intended for human or animal consumption that contains or purports to contain any variant or derivative of tetrahydrocannabinol, regardless of the nature or source of the cannabinoids. “Cannabis product” also means cannabis products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medicinal cannabis products.

H. “Canopy” means all areas occupied by any portion of a cannabis plant whether contiguous or noncontiguous on any one site. When plants occupy multiple horizontal planes (as when plants are placed on shelving above other plants) each plane shall be counted as a separate canopy area.

I. “Commercial cannabis cultivation” means cultivation of cannabis undertaken in the course of conducting a cannabis business.

J. “Commercial cannabis permit” means a permit, license, certificate, or other approval issued by the City to a person to authorize that person to operate a cannabis business or engage in business as a cannabis business within the City.

K. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis and includes, but is not limited to, the operation of a nursery.

L. “Employee” means each and every person engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, associate, agent, manager or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation.

M. “Engaged in business as a cannabis business” means the commencing, conducting, operating, managing or carrying on of a cannabis business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. A person Cannabis Business Tax Ordinance

shall be deemed engaged in business within the City if:

1. Such person or person’s employee maintains a fixed place of business within the City for the benefit or partial benefit of such person;

2. Such person or person’s employee owns or leases real property within the City for business purposes;

3. Such person or person’s employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business;

4. Such person or person’s employee regularly conducts solicitation of business within the City;

5. Such person or person’s employee regularly conducts sales by delivery to addresses within the City; or

6. Such person or person’s employee performs work or renders services in the City.

The foregoing specified activities shall not be a limitation on the meaning of “engaged in business.”
N. “Evidence of doing business” means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a cannabis business in the City.

O. “Finance Director” means the Finance Director of the City of Guadalupe or his or her designee.

P. “Gross Receipts,” except as otherwise specifically provided, means, whether designated as a sales price, royalty, rent, membership fee, ATM service fee, delivery fee, slotting fee, any other fee, vaping room service charge, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, services and property of any kind or nature) received or payable for sales of goods, wares or merchandise, or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. In the event the business is involved in a “non-arm’s length transaction” the gross receipts will be subject to the fair market value using a methodology approved by the Finance Director. However, the following shall be excluded from Gross Receipts:

1. Cash discounts where allowed and taken on sales;
Cannabis Business Tax Ordinance

2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;

4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business;

5. Cash value of sales, trades or transactions between departments or units of the same business located in the City of Guadalupe and if authorized by the Finance Director in writing in accordance with Section 3.34.140 (B);

6. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered;

7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded;

8. Payments made by the tax-reporting cannabis business (Seller) to a cannabis business (Buyer) for the difference in the original acquisition price and subsequent renegotiated or finalized selling price of products or services sold to a specific end customer. This type of transaction is referred to as a “billback”. The tax-reporting cannabis business must provide supporting documentation to substantiate the transaction in order to be eligible for an exemption.

Q. “Lighting” means a source of light that is primarily used for promoting the biological process of plant growth. Lighting does not include sources of light that primarily exist for the safety or convenience of staff or visitors to the facility, such as emergency lighting, walkway lighting, or light admitted via small skylights, windows or ventilation openings.

R. “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product sold, or intended to be sold, for use pursuantto the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, for a medicinal cannabis patient in California who possesses a physician’s recommendation and/or a cannabis card issued pursuant to Health and Safety Code Section 11362.71.

S. "Non-arm's length transaction" means a transaction that does not meet the Cannabis Business Tax Ordinance

definition of an "arm's length transaction." In other words, the transaction is not a sale that reflects fair market value in the open market. One example of a non-arm's length transaction would be when a cultivator sells cannabis goods to a cannabis distributor at a sales price that is lower than what the same cultivator would charge to other cannabis distributors, or which does not reflect the fair market value in the open market.

T. “Nursery” means a facility or part of a facility that is used only for producing clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.

U. “Person” means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number.

V. “Processing” means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis and non-manufactured cannabis products.

W. “Retailer” means a person or business as defined in Section 3.34.040 (V) who sells cannabis or cannabis products at their place of business or by delivery to an end user or customer for use or consumption rather than to another person or business for resale.

X. “Sale”, “sell” and “to sell” means and includes any sale, exchange, or barter either as a retailer or wholesaler by a person or business as defined by Section 3.34.040 (V). It shall also mean any transactionwhereby, for any consideration, title to cannabis or cannabis products are transferred from one person to another and includes thedeliveryofcannabis orcannabisproducts pursuant to an order placed for the purchase of the same, but does not include the return of cannabis or cannabis products to the licensee from whom the cannabis or cannabis product was purchased.

Y. “State” means the State of California.

Z. “State license,” “license,” or “registration” means a state license issued pursuant to California Business & Professions Code Section 26050, and all other applicable state laws, required for operating a cannabis business.

AA. “Testing Laboratory” means a cannabis business that (i) offers or performs tests of cannabis or cannabis products, (ii) offers no service other than such tests, (iii) sells no products, excepting only testing supplies and materials, (iv) is accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state and (v) is registered with the Department of Cannabis Control or other state agency.

3.34.050 Tax Imposed.

A. Beginning January 1, 2027, there is imposed upon each person who is engaged in Cannabis Business Tax Ordinance

business as a cannabis business a cannabis business tax. Such tax is payable regardless of whether the person has been issued a commercial cannabis business license, permit, or other certificate to operate lawfully in the City or is operating unlawfully. The City’s acceptance of a cannabis business tax payment from a cannabis business operating illegally shall not constitute the City’s approval or consent to such illegal operations.

B. The City Council may, by resolution or ordinance, increase or decrease the rate of the cannabis business tax, including the initial rate of cannabis business tax.

Notwithstanding the foregoing, in no event shall the City Council repeal this tax or set any adjusted rate that exceeds the maximum rates calculated pursuant to this chapter.

C. The maximum rate of the cannabis business tax shall be calculated as follows:

1. For every person engaged in retail sales of cannabis or cannabis products, including as a retailer (dispensary) or non-storefront retailer (retail delivery business), or microbusiness, the person shall be subject to the maximum tax rate not to exceed ten percent (8%) of gross receipts.
a. The City Council may, at its discretion, establish separate tax rates for retail sales of medicinal and adult use cannabis, so long as neither rate exceeds the maximum rate for cannabis retail sales as established in Section 3.34.050 (C)(1), above.

2. For every person engaged in any wholesale cannabis business activity including but not limited to cannabis cultivation, manufacturing, distribution, or any other wholesale activity not specifically listed herein, the person shall be subject to the maximum tax rate not to exceed ten percent (4%) of gross receipts.

3. For every person engaged in the operation of a testing laboratory for cannabis or cannabis products, the person shall be subject to the maximum tax rate not to exceed ten percent (4%) of gross receipts.

D. Persons subject to the cannabis business tax shall register with the City and pay the registration fee pursuant to Section 3.34.060 in addition to paying a business license fee (business tax certificate) pursuant to Section 5.04.110.

3.34.060 Registration, reporting and remittance of tax.

A. Registration of Cannabis Business. All cannabis businesses shall be required to annually register as follows:

1. All persons engaging in business as a cannabis business, whether an existing, Cannabis Business Tax Ordinance

newly established or acquired business,shall register with the Finance Director within thirty (30) days of commencing operation and shall annually renew such registration within 30 days of the business registration anniversary date of each year thereafter. In registering, such persons shall furnish to the Finance Director a sworn statement, upon a form provided by the Finance Director, setting forth the following information:
i. The name of the business;
ii. The names and addresses of each owner;
iii. The exact nature or kind of business;
iv. The place where such business is to be carried on; and v. Any additional information which the Finance Director may require.

2. All persons engaging in retail sales of cannabis or cannabis products by delivery from locations outside of the City to addresses within the City shall apply for and retain a business license (business tax certificate) prior to conducting any such sales. To obtain a business license all such businesses shall do all of the following:
i. Complete a Business Tax Certificate Application and Cannabis Delivery Business Registration Form;
ii. Provide a copy of a valid DCC license and a valid license from a local agency authorizing the business to conduct cannabis operations as a retailer; and
iii. Submit completed forms and license/permit processing fees as established by the Finance Director.

B. An annual registration fee in accordance with the current and approved City fee schedule shall be presented with the sworn statement submitted under this chapter. This fee shall not be considered a tax and may be adjusted by resolution of the City Council.

C. The cannabis business tax imposed by this chapter shall be paid, in arrears, on a monthly basis. Each person owing a cannabis business tax shall on or before the last day of the month following the close of each month file with the Finance Director a statement (“tax statement”) of the tax owed for that calendar month and the basis for calculating that tax. The Finance Director may require that the tax statement be submitted on a form prescribed by the Finance Director. The tax for each calendar month shall be due and payable on the same date that the tax statement is due.

Cannabis Business Tax Ordinance

D. Upon cessation of a cannabis business, tax statements and payments shall be immediately due for all calendar months up through the calendar month during which cessation occurred.

E. In the event that there is a change in ownership of any cannabis business:
a. The new owner is required to submit an updated registration form to the Finance Director;
b. The new owner is subject to an audit by the Finance Director; and c. Unless otherwise provided by law, it is the joint and several liability of both the seller and buyer to remit any taxes, interest, penalties, and fees due up until the date of sale; otherwise, enforcement action may be taken pursuant to Section 3.34.160 of this chapter against both the seller and/or buyer in an amount to be determined by the Finance Director.

F. The Finance Director may, at his or her discretion, establish alternative reporting and payment periods for any taxpayer as the Finance Director deems necessary to ensure effective collection of the cannabis business tax. The Finance Director may also require that a deposit, to be applied against the taxes for a calendar month, be made by a taxpayer at the beginning of that calendar month. In no event shall the deposit required by the Finance Director exceed the tax amount he or she projects will be owed by the taxpayer for the calendar month. The Finance Director may require that a taxpayer make payments via a cashier’s check, money order, wire transfer, or similar instrument.

3.34.070 Payments and communications – timely remittance.

Whenever any payment, statement, report, request or other communication is due, it must be received by the Finance Director on or before the final due date. A postmark will not be accepted as timely remittance. If the due date would fall on a Saturday, Sunday or a holiday observed by the City, the due date shall be the next regular business day on which the City is open to the public.

3.34.080 Payment - when taxes deemed delinquent.

Unless otherwise specifically provided under other provisions of this chapter, the taxes required to be paid pursuant to this chapter shall be deemed delinquent if not received by the Finance Director on or before the due date as specified in Sections 3.34.060 and 3.34.070.

3.34.090 Notice not required by the City.

The City may as a courtesy send a tax notice to the cannabis business which owes the City a cannabis business tax. However, the Finance Director is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter. Failure to send such Cannabis Business Tax Ordinance

notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.

3.34.100 Penalties and interest.

A. Any person who fails or refuses to pay any cannabis business tax required to be paid pursuant to this chapter on or before the due date shall pay penalties and interest as follows:

1. A penalty equal to ten percent (10%) of the amount of the tax, in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent (1%) per month.

2. If the tax remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the tax, plus interest at the rate of one percent (1%) per month on the unpaid tax and on the unpaid penalties.

3. Interest shall be applied at the rate of one percent (1%) per month on the first day of the month for the full month and will continue to accrue monthly on the tax and penalty until the balance is paid in full.

B. Whenever a check or electronic payment is submitted in payment of a cannabis business tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided for in this chapter, and any other amount allowed under state law.

C. The Finance Director may waive the penalties imposed upon any person under this Section 3.34.100 if:

1. The person requests a waiver of penalties by submitting a written request for waiver to the Finance Director no later than June 30 of the second fiscal year following the fiscal year in which the tax became delinquent; and

2. The person provides evidence satisfactory to the Finance Director that the failure to pay timely was due to circumstances beyond the control of the person and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect; and the person paid the delinquent taxes, penalties, accrued interest, and fees owed prior to applying to the Finance Director for a waiver.

D. The waiver provisions specified in Section 3.34.100 (C) shall not apply to interest accrued on the delinquent taxes and a waiver shall be granted only once during any twenty-four month period. The Finance Director’s decision on a request for a waiver of penalties is final and conclusive and not subject to appeal under Section 3.34.150.

3.34.110 Refunds and credits.

Cannabis Business Tax Ordinance

A. No refund shall be made of any tax collected pursuant to this chapter, except as provided in Section 3.34.120.

B. No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution, or other termination of a business.

3.34.120 Refund procedures.

A. Whenever the amount of any cannabis business tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this chapter, it may be refunded to the claimant who paid the tax provided that a written claim for refund signed under the penalty of perjury is filed with the Finance Director within one (1) year of the date the tax was originally due or paid, whichever came first. A person may only file a claim for refund if the person paid the tax. No person shall be entitled to a refund unless the person can support the claim by written records sufficient to show entitlement thereto. The Finance Director's decision on a claim for refund is final and conclusive and not subject to appeal under Section 3.34.150.

B. The Finance Director, his or her designee which may include a third party or any other City officer charged with the administration of this chapter shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Finance Director to do so. The Finance Director may collect a fee adopted by resolution by the City Council to pay for the cost of examination and audit should the books and records be provided in a form insufficient to allow the Finance Director to make a determination on the claim for refund.

C. In the event that the cannabis business tax was erroneously paid in an amount in excess of the tax due, and the error is attributable to the City, the City shall refund the amount of tax erroneously paid; provided that (i) a claim for refund has been timely filed with the Finance Director; and (ii) the refund cannot exceed, under any circumstance, the amount of tax overpaid during the twelve months preceding the last month for which the claim states the tax was overpaid.

3.34.130 Personal Cultivation Not Taxed.

The provisions of this chapter shall not apply to personal cannabis cultivation or personal use of cannabis, to the extent those activities are authorized in the “Medicinal and Adult Use Cannabis Regulation and Safety Act,” as may be amended. This chapter shall not apply to personal use of cannabis that is specifically exempted from state licensing requirements, that meets the definition of personal use or equivalent terminology under state law, and provided that the individual receives no compensation whatsoever related to that personal cultivation or use.

3.34.140 Administration of the tax.

Cannabis Business Tax Ordinance

A. It shall be the duty of the Finance Director to collect the taxes, penalties, fees, and perform the duties required by this chapter.

B. For purposes of administration and enforcement of this chapter generally, the Finance Director may from time to time establish such administrative interpretations, rules, and procedures consistent with the purpose, intent, and express terms of this chapter as he or she deems necessary to implement or clarify such provisions or aid in enforcement.

C. The Finance Director may take such administrative actions as needed to administer the cannabis business tax, including but not limited to:

1. Provide to all cannabis business taxpayers forms for the reporting of the tax;

2. Provide information to any taxpayer concerning the provisions of this chapter;

3. Receive and record all taxes remitted to the City as provided in this chapter;

4. Maintain records of taxpayer reports and taxes collected pursuant to this chapter;

5. Assess penalties and interest to taxpayers pursuant to this chapter;

6. Determine amounts owed under and enforce collection pursuant to this chapter.

3.34.150 Appeal procedures.

A taxpayer aggrieved by a decision of the Finance Director with respect to the amount of tax, interest, penalties, and fees, if any, due under this chapter may appeal only if a hearing was requested and attended pursuant to Section 3.34.250. An appeal may be made by filing a notice of appeal with the City Clerk within thirty (30) calendar days of the serving or mailing of the Finance Director’s decision of the amount due. Upon receipt of a timely notice of appeal, the City Clerk shall fix a time and place for hearing such appeal with the City Administrator or his or her designee serving as the hearing officer. The City Clerk shall give at least ten (10) calendar days’ notice of the appeal hearing in writing to such taxpayer at the last known place of address. The hearing officer shall render a written decision that shall be served on the taxpayer at the last known place of address. The decision of the hearing officer shall be final and conclusive. Any amount found to be due by the hearing officer shall be immediately due and payable upon the service of the decision. If no notice of appeal is filed within the time prescribed in this Section, the Finance Director’s decision with respect to the amount of tax, interest, penalties, and fees due is final and conclusive.

3.34.160 Enforcement - action to collect.

Any taxes, interest, penalties, and/or fees required to be paid under the provisions of this chapter shall be deemed a debt owed to the City. Any person owing money to the City under the provisions of this chapter shall be liable in an action brought in the name of the City for the recovery of such debt. The provisions of this chapter shall not be deemed a limitation upon the Cannabis Business Tax Ordinance

right of the City to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the tax, interest, penalties, and/or fees imposed by this chapter or the failure to comply with any of the provisions of this chapter.

3.34.170 Apportionment.

If a person subject to the tax is operating both within and outside the City, it is the intent of the City to apply the cannabis business tax so that the measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the City. To the extent federal or state law requires that any tax due from any taxpayer be apportioned, the taxpayer may indicate said apportionment on his or her tax return. The Finance Director may promulgate administrative procedures for apportionment as he or she finds useful or necessary.

3.34.180 Constitutionality and legality.

This tax is intended to be applied in a manner consistent with the United States and California Constitutions and state law. None of the tax provided for by this chapter shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the Constitutions of the United States or the State of California or a violation of any other provision of the California Constitution or state law. If a person believes that the tax, as applied to him or her, is impermissible under applicable law, he or she may request that the Finance Director release him or her from the obligation to pay the impermissible portion of the tax.

3.34.190 Audit and examination of premises and records.

A. For the purpose of ascertaining the amount of cannabis business tax owed or verifying any representations made by any taxpayer to the City in support of his or her tax calculation, the Finance Director or his/her designees, which may include a third party, shall have the power to inspect any location where commercial cannabis activity occurs and to audit and examine all books and records (including, but not limited to bookkeeping records, access to METRC data, and/or point-of-sale data, state and/or federal income tax returns, excise tax returns, space utilized for cannabis related activities, and other records relating to the gross receipts of the business) of persons engaged in cannabis businesses. In conducting such investigation, the Finance Director, or his/her designees, which may include a third party, shall have the power to inspect any space utilized for cannabis business related activities, equipment or software, such as computers, software systems, platforms, and databases (including METRC), and/or point of sale systems, to include any keys or access codes for access to and use of the equipment and/or software, that may contain such records.

B. It shall be the duty of every person liable for the collection and payment to the City of any tax imposed by this chapter to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Finance Director Cannabis Business Tax Ordinance

or his/her designee, which may include a third party, shall have the right to inspect at all reasonable times.

3.34.200 Other licenses, permits, taxes, fees or charges.

A. Nothing contained in this chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any commercial cannabis permit, City license, permit, or other certificate required by, under or by virtue of any provision of any other Chapter of this code or any other ordinance or resolution of the City, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required under any other Chapter of this code or any other ordinance or resolution of the City.

Any references made or contained in any other Chapter of this code to any licenses, permits, certificates, taxes, fees, or charges, or to any schedule of license, permit, certificate, or fees, shall be deemed to refer to the licenses, permits or certificates, and their respective taxes, fees or charges, or schedule of license fees, provided for in other Chapters of this code.

B. The Finance Director may revoke or refuse to renew the license required by this code for any business that is delinquent in the payment of any tax due pursuant to this chapter or that fails to make a deposit required by the Finance Director pursuant to Section 3.34.060.

C. A commercial cannabis permit issued under the Guadalupe Municipal Code may be revoked, suspended or not renewed in the event that the business holding that permit has failed to (i) make a deposit required by the Finance Director pursuant to Section 3.34.060 or (ii) timely pay all taxes, interest and penalties owed by that business under this chapter.

3.34.210 Payment of tax does not authorize unlawful business.

A. The payment of a cannabis business tax required by this chapter, and its acceptance by the City, shall not entitle any person to carry on any cannabis business unless the person has complied with all of the requirements of this code and all other applicable state laws.

B. No tax paid under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or state law.

3.34.220 Deficiency determinations.

If the Finance Director is not satisfied that any statement filed as required under the provisions of this chapter is correct, or that the amount of tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three (3) years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a cannabis business, a deficiency determination may be made at any time within three (3) years thereafter Cannabis Business Tax Ordinance

as to any liability arising from engaging in such cannabis business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Section 3.34.240 and 3.34.250.

3.34.230 Failure to report—nonpayment, fraud.

A. Under any of the following circumstances, the Finance Director may make and give notice of an assessment of the amount of tax owed by a person under this chapter at any time:

1. If the person has not filed a complete statement required under the provisions of this chapter;

2. If the person has not paid the tax due under the provisions of this chapter;

3. If the person has not, after demand by the Finance Director, filed a corrected statement, or furnished to the Finance Director adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this chapter; or

4. If the Finance Director determines that the nonpayment of any cannabis business tax due under this chapter is due to fraud, a penalty of twenty-five percent (25%) of the amount of the tax shall be added thereto in addition to penalties and interest otherwise payable under this chapter and any other penalties allowed by law.

B. The notice of assessment shall separately set forth the amount of any tax known by the Finance Director to be due or estimated by the Finance Director, after consideration of all information within the Finance Director's knowledge concerning the business and activities of the person assessed, to be due under each applicable provision of this chapter and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. The notice shall state that the person has thirty (30) calendar days from the date of the notice to make a written request for an informal hearing before the Finance Director. The notice shall also state that if the person fails to timely request an informal hearing within the time allowed, the amount determined by the Finance Director is final and conclusive and is immediately due and payable.

3.34.240 Tax assessment - notice requirements.

The notice of assessment shall be served upon the person either by personal delivery, by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Finance Director for the purpose of receiving notices provided under this chapter; or, should the person have no address registered with the Finance Director for such purpose, then to such person's last known address. For the purpose of Section 3.34.240, a service by overnight delivery shall be Cannabis Business Tax Ordinance

deemed to have occurred one (1) calendar day following deposit with a courier and service by mail shall be deemed to have occurred three (3) days following deposit in the United States mail.

3.34.250 Tax assessment - hearing, application and determination.

Within thirty (30) calendar days after the date of service of the notice of assessment the person may apply in writing to the Finance Director for an informal hearing on the assessment.

If application for an informal hearing is not made within the time herein prescribed, the tax assessed by the Finance Director shall become final and conclusive. Within thirty (30) calendar days of the receipt of any such application for an informal hearing, the Finance Director shall cause the matter to be set for an informal hearing before him or her, or his/her designee, no later than thirty (30) calendar days after the receipt of the application, unless a later date is agreed to by the Finance Director and the person requesting the informal hearing. Notice of such informal hearing shall be given by the Finance Director to the person requesting such informal hearing no later than five (5) calendar days prior to such informal hearing. A hearing under this section shall be informal and need not follow any formal rules of evidence. At such hearing said applicant may appear and offer evidence why the assessment as made by the Finance Director should not be confirmed and fixed as the tax due. After such hearing the Finance Director shall determine and reassess (if necessary) the proper amount of tax, interest, penalties, and fees to be charged and shall give written notice of the decision to the person in the manner prescribed in Section

3.34.240 for giving notice of assessment. No appeal of a notice of assessment may be made under Section 3.34.150 unless an informal hearing is timely requested and the person attends the hearing. If the person fails to appear at the informal hearing, the amount due determined by the Finance Director in the notice of assessment is final and conclusive.

3.34.260 Relief from taxes – disaster relief.

A. If a person is unable to comply with any tax requirement imposed under this chapter due to a disaster impacting its cannabis business, the person may notify the Finance Director of its inability to comply and request relief from the tax requirement. For purposes of this chapter, “disaster” means fire, flood, storm, tidal wave, earthquake, or similar public calamity resulting in physical damage to real property, whether or not resulting from natural causes.

B. The person shall provide any information required by the Finance Director including, without limitation, why relief is requested, the time period for which the relief is requested, and the reason relief is needed for the specific amount of time. The person agrees to grant the Finance Director or his/her designee access to the location where the cannabis business has been impacted due to a disaster.

C. The Finance Director, in his/her sole discretion, may provide relief from the cannabis business tax requirement for businesses whose operations have been impacted by a disaster if such tax relief does not exceed ten thousand ($10,000) dollars. Such temporary relief may be granted for a reasonable amount of time, in the Finance Director’s sole discretion, and the amount and duration of relief should be based upon how long it would reasonably take for the cannabis business to recover from the disaster. The Finance Director may require that the Cannabis Business Tax Ordinance

cannabis business follow certain conditions to receive temporary relief from the cannabis business tax requirement. The Finance Director's decision on a request for relief and the conditions that may be imposed for relief under this section are final and conclusive and not subject to appeal under Section 3.34.150.

3.34.270 Conviction for violation - taxes not waived.

The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this chapter or of any state law requiring the payment of all taxes.

3.34.280 Violation deemed misdemeanor.

Any person violating any of the provisions of this chaptershall be guilty of a misdemeanor.

3.34.290 Severability.

If any provision of this chapter, or its application to any person or circumstance, is determined by a court of competent jurisdiction to be unlawful, unenforceable, or otherwise void, that determination shall have no effect on any other provision of this chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable.

3.34.300 Remedies cumulative.

All remedies and penalties prescribed by this chapter or which are available under any other provision of this code and any other provision of law or equity are cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter.

3.34.310 Amendment or modification.

Except as set forth in Section 3.34.310, this chapter may be amended or modified but not repealed by the City Council without a vote of the people. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment that would expand, extend, or increase the rate of any tax levied pursuant to this chapter beyond the maximums set forth in this chapter. The people of the City of Guadalupe affirm that the following actions shall not constitute an increase of the rate of a tax:

A. The restoration or adjustment of the rate of the tax to a rate that is no higher than that allowed by this chapter, in those circumstances where, among others, the City Council has previously acted to reduce the rate of the tax or is incrementally implementing an increase authorized by this chapter;
Cannabis Business Tax Ordinance

B. An action that interprets or clarifies (i) the methodology of applying or calculating the tax or (ii) any definition applicable to the tax, so long as the interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the provisions of this chapter; or
C. The collection of the tax imposed by this chapter even if the City had, for some period of time, failed to collect the tax.

SECTION 2. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The people of the City of Guadalupe hereby declare that they would have passed this ordinance and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid.

SECTION 3. ENVIRONMENTAL COMPLIANCE. The City Council hereby finds and determines that this resolution is exempt from the California Environmental Quality Act, Public Resources Code Sections 21000 et seq. (“CEQA”) and 14 Cal. Code Re. Sections 15000 et seq. (“CEQA Guidelines”). The calling and noticing of an election for the submission of a ballot measure to voters is not a project within the meaning of CEQA Guidelines 15378. The tax submitted to the voters is a general tax that can be used for any governmental purpose; it is not a commitment to any particular action or actions.

As such, under CEQA Guidelines Section 15378 (b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue generated by the tax were used for a purpose that would have such an effect, the City of Guadalupe would undertake the required CEQA review for that particular project. Therefore, pursuant to CEQA Guideline Section 15060 CEQA analysis is not required.

SECTION 4. ELECTION REQUIRED. This Ordinance shall not become operative unless and until a majority of the electors voting on this measure vote to approve the imposition of the tax at the General Election to be held on November 3, 2026.

SECTION 5. EFFECTIVE DATE. Pursuant to the California Constitution, Article XIIIC(2)(b) and California Elections Code 9217, if a majority of the voters voting in the election vote in favor of the adoption of this measure, this ordinance shall be deemed valid and binding and shall be considered adopted upon the date that the vote is declared by the City Council and shall go into effect ten (10) days after that date.

INTRODUCED at a regular meeting of the City Council on the 9th day of June 2026, by the following roll call vote, subject to voter approval at November 3, 2026, General Municipal Election.

Cannabis Business Tax Ordinance