Scotts Valley City Council
May 7, 2025

AGENDA
Meeting of the
Scotts Valley City Council
In-Person and Remote Access
Date: May 7, 2025
Time: 6:00 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
(831) 440-5600
City Council Chambers
1 Civic Center Drive
Scotts Valley, CA 95066
OR
Zoom Video Conference
https://us02web.zoom.us/j/83295730901
Agenda posted on 5-2-
2025 at City Hall, SV
Senior Center, SV Public
Works Building, and on the
Internet
at: www.scottsvalley.gov

ELECTED OFFICIALS CITY STAFF MEMBERS
Derek Timm, Mayor
Allan Timms, Vice Mayor
Steve Clark, Council Member
Krista Jett, Council Member
Donna Lind, Council Member
Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Stephanie Hill, Administrative Services Director
Steve Walpole, Police Chief
Jason Rutherford, Police Captain
Scott Garner, Police Captain
Cathie Simonovich, City Clerk

MEETING NOTICE AND AGENDA PACKET MATERIALS
Notice regarding City Council Meetings:

The City Council meets regularly on the 1st and 3rd Wednesday of each month at 6:00 PM in the City Hall Council Chambers located at 1 Civic Center Drive, Scotts Valley, CA 95066, and via Zoom Webinar remote access.

Agenda and Agenda Packet Materials:

The City Council agenda and the complete agenda packet are available for review by 5:00 PM the Friday before the Wednesday meeting on the Internet at the City’s website:
www.scottsvalley.gov and in the lobby of City Hall at 1 Civic Center Drive, Scotts Valley, CA.

Pursuant to Government Code §54957.5, materials related to an agenda item, submitted after distribution of the agenda packet, are available for public inspection in the lobby of City Hall during normal business hours, Monday-Friday, 8am-12 pm and 1-5 pm. In accordance with AB 1344, such documents will be posted on the City’s website at www.scottsvalley.gov.

Public Participation:

The meeting will be available on Zoom and livestreamed to the City of Scotts Valley’s YouTube channel: https://www.youtube.com/@cityofscottsvalley
For those wishing to participate via Zoom you can join the following ways:

Zoom Webinar meeting link: https://us02web.zoom.us/j/83295730901

City Council Meeting Agenda Page 2
Date: May 7, 2025
Or dial one of these numbers: (669) 900-9128 or (669) 444-9171 Webinar ID: 832 9573 0901
Whether attendance is in-person or remote, you will be given opportunities to provide public comment at the appropriate times throughout the meeting. The time limit is up to 3 minutes for an individual, or 5 minutes for someone who is representing a group of three or more, at the discretion of the Mayor. Please note that this is not a question-and-answer time, but simply a time to provide comments to the Council. At the appropriate times during the meeting for public comment, on items not on the agenda, and on specific agenda items, the Mayor will announce that public comment will be accepted.

How to comment via in-person attendance:

Please proceed to the public comment podium when the Mayor opens the item for public comment.

How to comment via Zoom Webinar:

Use the webinar attendee option to “raise hand” when the Mayor opens the item for public comment. The Clerk will unmute you when it is your turn. If you have joined via Zoom phone call, dial *9 or your phone to “raise your hand”, and the Clerk will unmute you when it is your turn.

CALL TO ORDER 6:00 PM
PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE

ROLL CALL

SPECIAL SET MATTER

1. Mayor's Proclamation - Peace Officers Memorial Day

COMMITTEE REPORTS
Council members are appointed to committees which are either City committees or committees dealing with other jurisdictions. This portion of the agenda allows the committee member to present oral or written reports to the Council regarding their committee assignments. It also allows the Council to make comments and give the committee member direction, as required.

CITY MANAGER REPORT

PUBLIC COMMENT TIME
This is the opportunity for individuals attending in person to make oral comments to the Council on any items within the purview of the Council, which are NOT part of the Agenda. No action on the item may be taken, but the Council may request the matter be placed on a future

City Council Meeting Agenda Page 3
Date: May 7, 2025
agenda. Written public comment may be emailed to the City Clerk by 5:00 PM on the day of the meeting at [email protected].

ALTERATIONS TO CONSENT AGENDA
Council can remove or add items to the Consent Agenda.

CONSENT AGENDA
The Consent Agenda is comprised of items which are intended to be non-controversial and are approved without discussion. Persons wishing to speak on any item may request the item be moved to the Regular Agenda by raising their hand to be recognized by the Mayor. An item will only be moved from the Consent Agenda to the Regular Agenda if a City Council Member requests it to be moved and a majority of the Council agrees.

1. Approve City Council minutes of 04-16-2025

2. Approve check register dated 04-12-2025 through 05-02-2025

3. Investment Report for the Quarter Ended March 31, 2025

4. Selection and direction to enter into a professional services agreement for auditing services

PUBLIC HEARINGS

1. Public Hearing on Vacancies to Comply with Assembly Bill 2561

ALTERATIONS TO REGULAR AGENDA
Council can remove or add items to the Regular Agenda.

REGULAR AGENDA
Persons wishing to speak on any item may do so by raising their hand to be recognized by the Mayor.

1. Consider request to display the Pride flag to commemorate Pride Month from June 1st to June 30th, 2025

2. Scotts Valley Police Annual Activity Report

3. AB 481 Military Equipment Use Annual Report and Ordinance Renewing the Military Use Policy

City Council Meeting Agenda Page 4
Date: May 7, 2025

4. Introduction of Ordinance 7.8 amending Title 8 of the Scotts Valley Municipal Code by repealing Chapter 8.04 in its entirety and by adding a new Chapter

8.05, Graffiti Abatement - Public Nuisance

5. Future Council Agenda Items

ADJOURNMENT

ADA NOTICE
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5600 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; or, Voice to TTY/VCO/HCO: English 1-800-735-2922, Spanish 1-800-855-3000), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

City Council Meeting Agenda Page 5
Date: May 7, 2025

PROCEDURAL INFORMATION FOR THE PUBLIC

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
APPROVAL OF A RESOLUTION:

1. Move the Resolution number for approval.

2. Second the motion.

3. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
INTRODUCTION/ADOPTION OF AN ORDINANCE:

1. Move the Ordinance number for introduction (or adoption).

2. Move the Ordinance be introduced by title only and waive the reading of the text.

3. Read the Ordinance title.

4. Second the motion.

5. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
PUBLIC COMMENT/PUBLIC HEARINGS:

Unless otherwise determined by the presiding officer of the meeting:

1. Three minutes allowed per individual to speak.

2. Five minutes allowed per individual representing a group of three or more. ❖❖❖❖❖❖❖❖
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5602 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; Voice to TTY/VCO/HCO: English 1- 800-735-2922, Spanish 1-800-855-3000; or, from or to Speech-to-Speech, English & Spanish 1- 800-854-7787), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE

ROLL CALL
CITY STAFF MEMBERS PRESENT:

Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Steve Walpole, Police Chief
Stephanie Hill, Administrative Services Director
Taylor Bateman, Community Development
Director
Cathie Simonovich, City Clerk

ELECTED OFFICIALS
PRESENT:

Derek Timm, Mayor
Allan Timms, Vice Mayor
Steve Clark, Council Member
Krista Jett, Council Member
Donna Lind, Council Member

COMMITTEE REPORTS

MINUTES
Meeting of the
Scotts Valley City Council
Date: April 16, 2025
Time: 6:00 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley City Council Chambers The agenda was posted 1 Civic Center Drive 1 Civic Center Drive on 04-11-2025 at City Scotts Valley, CA Scotts Valley, CA 95066 Hall, SV Senior Center, 95066 OR SV Public Works Building,
(831) 440-5600 Zoom Video Conference and on the Internet https://us02web.zoom.us/j/83295730901 at www.scottsvalley.gov.

CALL TO ORDER 6:00 PM
The City Council meeting was called to order at 6:00 PM.

CM Clark attended a Senior Council meeting where they updated the Area Plan on Aging.

CM Clark attended a Regional Transportation Commission (RTC) meeting and announced that the auxiliary lanes on Highway 1, including the bus-on-shoulder lanes, are open ahead of schedule. This work will continue on Highway 1 towards State Park Drive.

City Council Meeting Minutes
Date: April 16, 2025

CITY MANAGER REPORT
VM Timms attended the Economic Development Committee meeting where they discussed the implementation of the business license tax, potentially having Administration Services oversee the Arts Commission in the future, ideas for improving the arts throughout the City, and possible approaches to build awareness for the Autism Certification program.

VM Timms attended a Budget Subcommittee meeting, which is one of two meetings scheduled to review the proposed 2025-26 budget. They reviewed the Police Department, Community Development Department, and Administrative Services Department at this meeting. The remainder of the departments will be reviewed at the next meeting.

CM Lind attended a Santa Cruz Metropolitan Transit District (METRO) meeting where they are working on the strategic plan and the annual review of the Chief Executive Officer (CEO).

CM Lind continues to assist with planning for the Scotts Valley Chamber of Commerce Awards Gala event, which will be on May 9th. She noted that the early bird discounted ticket price ends on April 25th.

CM Lind attended the Candlelight Vigil for victims and survivors of crime during National Crime Victims' Rights Week.

CM Lind attended a multi-Chamber event for West Coast Community Bank (WCCB), formally Santa Cruz County Bank.

Mayor Timm attended a City Selection Committee meeting where they confirmed the nomination of Justin Cummings to the California Coastal Commission.

Mayor Timm noted that during the Budget Subcommittee meeting they discussed changes at the state and federal level that will likely affect cities, and they also discussed potential challenges if consumer spending slows down.

Mayor Timm announced that the April meeting of the Association of Monterey Bay Area Governments (AMBAG) was cancelled.

Mayor Timm attended the Insurance Town Hall where Insurance Commissioner Ricardo Lara gave updated information. A key point that could benefit Scotts Valley residents is regarding recent legislation that will require insurance companies to write policies within impacted areas. Commissioner Lara also encouraged residents to build Firewise communities.

National Public Safety Communication Appreciation Week: City Manager LaGoe announced that this week we are celebrating our dispatchers for all that they do to answer emergency and non- emergency calls, greet the public, maintain the police records, and much more.

City Council Meeting Minutes
Date: April 16, 2025

Concrete Grinding for Safety: This current project aligns with the City's risk management safety program to eliminate trip hazards around town. City Manager LaGoe noted that you can see the work in front of City Hall that was completed this week.

Skypark Soccer Fields Vandalized: The fields were damaged by a car being driven on them. Repairs to the field are in process and physical barriers will likely be installed to discourage this behavior.

Town Center Property Purchase: Escrow is open for the purchase of the Town Center parcels from the City of Santa Cruz. Escrow will close around the end of the fiscal year.

Town Center Meetings: The meetings are ramping up as we move through the Specific Plan and the Environmental Impact Report (EIR) process. Director Bateman, City Attorney Powell, and City Manager LaGoe have been meeting regularly with the Town Center consultants to ensure that the project stays on track.

Monterey Bay Area Self Insurance Authority (MBASIA): City Manager LaGoe is on the MBASIA Board as Treasurer. MBASIA is the risk management pool consisting of 10 small cities all located in the Monterey Bay Area. At the recent meeting they discussed the budget, and she noted that Scotts Valley's property insurance costs are predicted to be flat, and workers' compensation costs are predicted to decrease slightly. They also discussed a new earthquake protection insurance policy. The MBASIA budget will be finalized in June and the City will use this information in the annual budget.

Central Coast Community Energy (3CE) Operations Board: At this meeting they discussed the electrification incentive program, including options to streamline the program.

Continuum of Care (CoC) Board Meeting: This is a countywide organization created to address homelessness and affordable housing. The discussion at this meeting was heavily focused on the changing landscape of federal and state funding. They also discussed Affordable Housing Month which is coming up in May. There are several events around the county to celebrate affordable housing month. Please go to housingsantacruzcounty.com for more information.

Measure X Implementation: Communication is being prepared to inform businesses about the implementation of Measure X, which changes the business license tax structure.

Advocacy Letters: Two letters of support that align with Scotts Valley's Legislative Platform were sent out this week. The first was requested by the League of California Cities (CalCities) and is a letter of support for AB 650 which will help cities comply with the Regional Housing Needs Assessment (RHNA) process in a number of ways. The

City Council Meeting Minutes
Date: April 16, 2025

PUBLIC COMMENT TIME

ALTERATIONS TO CONSENT AGENDA

CONSENT AGENDA
second letter went to Senator Laird and Assemblymember Pellerin and was regarding e-bike safety for youth.

Reminders:
• Sign up for the City's newsletter
• Follow the City on social media
CM Lind announced that April is Sexual Assault Awareness Month and Child Abuse Prevention Month. She shared information from Monarch Services regarding the events taking place in the month of April and all the information can be found at https://www.monarchscc.org. Mayor Timm added that Monarch has done great work for our community, and they are also the recipient of a grant from the City through the Community Grant Program. He noted that Monarch accepts private donations as well.

Paul Murphy, a resident of Scotts Valley, inquired about the status of the Bocce court roof. Although the public comment period does not allow for a question-and-answer process, Mayor Timm indicated the City Manager has relevant information on this topic. City Manager LaGoe reported that the City is researching shade options around the bocce area that will provide more immediate relief, as well as looking long-term by implementing a Skypark Master Plan as an overarching plan to address the entire Skypark facility.

M/S: Lind/Timms
To approve the Consent Agenda with no alterations.

Carried 5/0 (AYES: Timm, Timms, Clark, Jett, Lind)

1. Approve City Council Special Meeting and Regular Meeting minutes of 04-02- 2025

2. Approve check register dated 03-29-2025 through 04-11-2025

3. Ratify appointment of Parks and Recreation Commissioner

4. Aeration Basin System Upgrades Project - Cushman Contracting Agreement Amendment

City Council Meeting Minutes
Date: April 16, 2025

ALTERATIONS TO REGULAR AGENDA

REGULAR AGENDA

CONVENE TO CLOSED SESSION

CLOSED SESSION SUBJECT(S)

RECONVENE TO OPEN SESSION

REPORT ON ACTION TAKEN DURING CLOSED SESSION

5. Wastewater Recycling Facility Membrane Bioreactor Preliminary Design Agreement Amendment

6. Amendment to Employment Contract between the City of Scotts Valley and Mali LaGoe

7. Consider Resolution Designating No Parking on El Pueblo, Carbonero Way, Victor Square Extension and Technology Drive on Tuesdays from 5:00am to 7:00am
M/S: Clark/Timms
To approve the Regular Agenda with no alterations.

Carried 5/0 (AYES: Timm, Timms, Clark, Jett, Lind)

1. Future Council Agenda Items
Mayor Timm requested staff to place the consideration of displaying the Pride flag during the month of June 2025, commonly known as Pride Month, on an upcoming City Council agenda. A majority of the Council Members supported this request.

The City Council convened to closed session at 6:21 PM to discuss the following item:

1. Conference with legal counsel regarding existing litigation Legal Authority: Government Code Section 54956.9
Name of Case: Justin Nordgreen vs. City of Scotts Valley, et al. United States District Court for the Northern District of California, Case 5:25-cv02574-NW Staff Present: City Manager, City Attorney, Police Chief The City Council reconvened to open session at 6:45 PM.

City Council Meeting Minutes
Date: April 16, 2025

ADJOURNMENT
Mayor Timm announced that there was nothing to report from the Closed Session meeting.

The meeting adjourned at 6:45 PM.

Attest:

Cathie Simonovich, City Clerk
Approved:

Derek Timm, Mayor

apadatecr2 City of Scotts Valley llambert 05/02/2025 09:41 Page 1 A/P Check Register Checks from 04/12/2025 to 05/02/2025
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type Cash Account: 999-10100-000-000-000000
133772 04/18/25 ACE PORTABLE SERVICES 750.24 O Payment Manager 133773 04/18/25 ALHAMBRA 368.91 O Regular133774 04/18/25 ALVAREZ IND INC CLEAN BLDG 451.00 O Regular133776 04/18/25 BADAWI & ASSOCIATES 1,973.50 O Regular133777 04/18/25 BRIGHTVIEW LANDSCAPE 4,166.50 O Regular133778 04/18/25 CARMEL AREA WASTEWATER DIST 6,311.00 O Regular133779 04/18/25 CHRISTOPHER DUMONCEAUX 21.99 O Regular133780 04/18/25 CITY OF SANTA CRUZ 775.00 O Regular133781 04/18/25 COMCAST 323.11 O Payment Manager133782 04/18/25 COMMUNITY TREE SERVICE, INC. 7,842.47 O Payment Manager133783 04/18/25 CRYSTAL SPRINGS WATER CO 88.75 O Regular133784 04/18/25 CUSHMAN CONTRACTING CORPORATIO 9,521.51 O Regular133785 04/18/25 DAWN BANKS 144.00 O Regular133786 04/18/25 DEPT OF JUSTICE 64.00 O Regular133787 04/18/25 DEPT OF TRANSPORTATION 3,298.94 O Regular133788 04/18/25 ERNIES AUTO CENTER 97.68 O Regular 133789 04/18/25 FERGUSON ENTERPRISES, LLC #795 34.56 O Regular133790 04/18/25 FIRST ALARM 316.47 O Regular133791 04/18/25 FORD HALL COMPANY,INC 690.88 O Regular133792 04/18/25 GOOD CITY COMPANY 18,677.25 O Regular133793 04/18/25 HERWIT ENGINEERING 8,003.50 O Regular133794 04/18/25 HINDERLITER, DE LLAMAS & ASSOC 22,000.00 O Regular133795 04/18/25 HOSE SHOP 597.74 O Regular133796 04/18/25 K & D LANDSCAPING, INC. 2,514.00 O Regular133797 04/18/25 KOSMONT COMPANIES, INC 8,491.00 O Regular133798 04/18/25 L & M FIRE PROTECTION 1,440.00 O Regular133799 04/18/25 LINDA KAEMPFER BAKER 150.00 O Regular133800 04/18/25 LLOYDS TIRE SERVICE INC. 1,615.56 O Regular133801 04/18/25 LOGAN & POWELL, LLP 27,940.09 O Regular133802 04/18/25 MARY LOUISE DEFALCO 46.80 O Regular133803 04/18/25 MID VALLEY SUPPLY 278.20 O Payment Manager133804 04/18/25 MISSION UNIFORM SERVICE 575.83 O Payment Manager133805 04/18/25 MONTEREY BAY ANALYTICAL SVCS 1,759.60 O Regular133806 04/18/25 NATIONAL COMTEL NETWORK INC. 17.54 O Regular133807 04/18/25 OREILLY AUTOMOTIVE,INC 359.96 O Regular 133808 04/18/25 OLIN CORPORATION AS SOLE 5,143.37 O Regular133809 04/18/25 OPENGOV, INC. 2,390.00 O Regular133810 04/18/25 PALACE BUSINESS SOLUTIONS 78.34 O Regular133811 04/18/25 PETTY CASH - LAUREN LAMBERT 95.61 O Regular133812 04/18/25 PHILLIP D NEUMAN 32,244.57 O Regular133813 04/18/25 PURETEC INDUSTRIAL WATER 59.66 O Regular133814 04/18/25 ROSS RECREATION EQUIPMENT INC. 2,312.90 O Regular133815 04/18/25 S.V. WATER DISTRICT - BULK 102.92 O Regular133816 04/18/25 SCARBOROUGH LUMBER 590.59 O Regular

apadatecr2 City of Scotts Valley llambert 05/02/2025 09:41 Page 2 A/P Check Register Checks from 04/12/2025 to 05/02/2025
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type133817 04/18/25 SCOTTS VALLEY CAR WASH 76.96 O Regular133818 04/18/25 SCOTTS VALLEY SPRINKLER 260.00 O Regular133819 04/18/25 SHARRON BARTH 42.00 O Regular133820 04/18/25 SONSRAY MACHINERY 4,189.80 O Regular133821 04/18/25 STRATEGIC CULTURE CORP 17,243.57 O Regular133822 04/18/25 SYCAL ENGINEERING INC 897.47 O Regular133823 04/18/25 TESTING ENGINEERS, INC 1,625.00 O Regular133824 04/18/25 THE PIED PIPER INC. 68.50 O Payment Manager133825 04/18/25 THOMSON REUTERS-WEST 396.48 O Payment Manager133826 04/18/25 U.S. BANCORP OFFICE 1,300.62 O Regular133827 04/18/25 U.S. BANK CORPORATE 19,556.33 O Regular133828 04/18/25 URBAN FIELD STUDIO OAKLAND 8,730.00 O Regular133829 04/18/25 VERIZON WIRELESS 178.70 O Regular133830 04/18/25 WIZIX TECHNOLOGY GROUP, INC 14.50 O Payment Manager133831 04/28/25 3SI SECURITY SYSTEMS, INC 360.00 O Regular133832 04/28/25 ACC BUSINESS 1,830.64 O Payment Manager133833 04/28/25 ACE PORTABLE SERVICES 337.19 O Payment Manager133834 04/28/25 AFLAC-FLEX ONE 738.29 O Regular133835 04/28/25 ALVAREZ IND INC CLEAN BLDG 410.00 O Regular133836 04/28/25 ANDERSON PACIFIC ENG INC. 10,217.43 O Regular133837 04/28/25 AT&T 2,060.77 O Regular133838 04/28/25 AT&T 2,748.49 O Regular133839 04/28/25 AT&T MOBILITY 1,555.82 O Regular133840 04/28/25 AUTO CARE LIFESAVER TOWING 90.00 O Regular133841 04/28/25 BATTERIES + BULBS #314 15.35 O Regular133842 04/28/25 BAY TREE, LLC 4,412.86 O Regular133843 04/28/25 BOWMAN & WILLIAMS 4,460.00 O Regular133844 04/28/25 BRINKS AWARDS & SIGNS 68.59 O Regular 133845 04/28/25 CAL-WEST LIGHTING & SIGNAL INC 2,585.80 O Regular133846 04/28/25 CALIFORNIA BUILDING 216.00 O Regular133847 04/28/25 CHLOE GRAHAM 75.60 O Regular133848 04/28/25 COMCAST 1,177.63 O Payment Manager133849 04/28/25 COMCAST 1,050.55 O Regular133850 04/28/25 COUNTY OF SANTA CRUZ 104.00 O Regular133851 04/28/25 CUMMING MANGEMENT GROUP, INC 112.50 O Regular133852 04/28/25 DAVID ARTHUR FRANKLIN 1,500.00 O Regular133853 04/28/25 DEPT OF CONSERVATION 787.77 O Regular133854 04/28/25 DEPT OF JUSTICE 32.00 O Regular133855 04/28/25 DIXON & SON TIRE 1,701.18 O Regular133856 04/28/25 DUNCAN AUTO TECH 688.01 O Payment Manager133857 04/28/25 GARRISON PLUMBING,INC 28,720.84 O Regular133858 04/28/25 HACH COMPANY 1,150.18 O Regular133859 04/28/25 HF&H CONSULTANTS LLC 32,500.00 O Regular133860 04/28/25 JESSE PIDCOCK 52.50 O Regular133861 04/28/25 MISSION UNIFORM SERVICE 266.50 O Payment Manager

apadatecr2 City of Scotts Valley llambert 05/02/2025 09:41 Page 3 A/P Check Register Checks from 04/12/2025 to 05/02/2025
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type133862 04/28/25 MONTEREY BAY ANALYTICAL SVCS 1,190.25 O Regular133863 04/28/25 PALACE BUSINESS SOLUTIONS 382.04 O Regular133864 04/28/25 PERFECTMIND INC 15,500.00 O Regular133865 04/28/25 PHILLIP D NEUMAN 685.46 O Regular133866 04/28/25 PHOENIX GROUP 289.30 O Regular133867 04/28/25 PRIORITY 1 PUBLIC SAFETY 15,661.31 O Regular133868 04/28/25 PRODESSE PROPERTY GROUP 3,523.52 O Regular133869 04/28/25 RANDALL KRUSEE 20.87 O Regular133870 04/28/25 ROD MARKELL 1,974.00 O Regular133871 04/28/25 ROSS RECREATION EQUIPMENT INC. 1,460.54 O Regular133872 04/28/25 S.V. WATER DISTRICT 7,614.71 O Regular133873 04/28/25 SANTA CRUZ COUNTY CONFERENCE 17,869.30 O Regular133874 04/28/25 SANTA CRUZ LIVE SCAN, INC. 30.00 O Regular133875 04/28/25 SCARBOROUGH LUMBER 853.30 O Regular133876 04/28/25 SCOTTS VALLEY CAR WASH 619.48 O Regular133877 04/28/25 SCOTTS VALLEY FIRE DISTRICT 13,105.00 O Regular133878 04/28/25 SCOTTS VALLEY SPRINKLER 381.44 O Regular133879 04/28/25 SHAPE INC. 9,316.25 O Regular133880 04/28/25 SJON TOL 34.98 O Regular133881 04/28/25 STERICYCLE INC 248.02 O Regular133882 04/28/25 SYCAL ENGINEERING INC 301.50 O Regular133883 04/28/25 TELECOMMUNICATIONS 6,666.24 O Regular133884 04/28/25 THE PIED PIPER INC. 155.50 O Payment Manager133885 04/28/25 THE PROFESSIONAL TOUCH 130.00 O Regular133886 04/28/25 U.S. POSTMASTER 350.00 O Regular133887 04/28/25 USA BLUE BOOK 883.82 O Payment Manager133888 04/28/25 WIZIX TECHNOLOGY GROUP, INC 807.62 O Payment Manager133889 05/02/25 AT&T 1,994.16 O Regular133890 05/02/25 AT&T 166.75 O Regular133891 05/02/25 AT&T 57.82 O Regular133892 05/02/25 BATTERIES + BULBS #314 165.10 O Regular133893 05/02/25 BENJAMIN NOBLE 7,218.75 O Regular133894 05/02/25 BRIAN OGLE-YOUMANS 94.12 O Regular133895 05/02/25 BRIGHTVIEW LANDSCAPE 4,166.50 O Regular133896 05/02/25 BUSINESS WITH PLEASURE 177.19 O Regular133897 05/02/25 CODY WENTWORTH 41.62 O Regular133898 05/02/25 CSG CONSULTANTS, INC 30,062.80 O Regular133899 05/02/25 CYPRESS COAST FENCE 18,881.00 O Regular133900 05/02/25 DAT Q. NGUYEN 127.53 O Regular133901 05/02/25 DAVID J. POWERS & ASSOC 21,240.00 O Regular133902 05/02/25 DEPT OF TRANSPORTATION 3,707.84 O Regular133903 05/02/25 DUNCAN AUTO TECH 1,077.84 O Payment Manager133904 05/02/25 ECOLOGICAL CONCERNS 2,565.00 O Regular133905 05/02/25 GARRISON PLUMBING,INC 13,273.74 O Regular133906 05/02/25 INTERWEST CONSULTING GROUP 5,940.00 O Regular

apadatecr2 City of Scotts Valley llambert 05/02/2025 09:41 Page 4 A/P Check Register Checks from 04/12/2025 to 05/02/2025
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type133907 05/02/25 JENNIFER DUNBAR 20.90 O Regular133908 05/02/25 K & D LANDSCAPING, INC. 1,396.00 O Regular133909 05/02/25 KARRIYMA PEKARY 250.00 O Regular133910 05/02/25 LLOYDS TIRE SERVICE INC. 72.79 O Regular 133911 05/02/25 M-GROUP 5,940.00 O Regular133912 05/02/25 MATTHEW SPENCER-COOKE 126.65 O Regular133913 05/02/25 METROPOLITAN TRANSPORTATION 2,000.00 O Regular133914 05/02/25 MID VALLEY SUPPLY 389.05 O Payment Manager133915 05/02/25 MISSION UNIFORM SERVICE 297.84 O Payment Manager133916 05/02/25 MP EXPRESS, INC. 395.92 O Regular133917 05/02/25 NELSON ALFARO 19.50 O Regular133918 05/02/25 NORTH BAY FORD-LINCOLN- 896.41 O Regular133919 05/02/25 PALACE BUSINESS SOLUTIONS 105.34 O Regular133920 05/02/25 PASCALE DROZEK 78.00 O Regular133921 05/02/25 PETTY CASH - LAUREN LAMBERT 103.00 O Regular133922 05/02/25 PHENOVA 1,113.14 O Regular133923 05/02/25 PRINICPAL LIFE INSURANCE CO 7,807.99 O Regular133924 05/02/25 PRODESSE PROPERTY GROUP 3,523.52 O Regular133925 05/02/25 ROBERT ORMONDE 439.82 O Regular133926 05/02/25 ROD MARKELL 1,974.00 O Regular133927 05/02/25 SANTA CRUZ COUNTY 13,967.90 O Regular133928 05/02/25 SCARBOROUGH LUMBER 1,055.34 O Regular133929 05/02/25 SCOTTS VALLEY SPRINKLER 73.51 O Regular133930 05/02/25 STERLING WATER TECHNOLOGIES 1,930.06 O Regular133931 05/02/25 TESTING ENGINEERS, INC 350.00 O Regular133932 05/02/25 THE BANK OF NEW YORK MELLON 1,700.00 O Regular133933 05/02/25 TORO PETROLEUM CORP 13,912.03 O Regular133934 05/02/25 VITANI HARRISON 69.00 O Regular133935 05/02/25 WENDY OMEARA 82.40 O Regular 133936 05/02/25 WEX BANK 9,108.16 O Regular133937 05/02/25 ZELLER APPRAISAL SERVICES INC 4,050.00 O Regular

apadatecr2 City of Scotts Valley llambert 05/02/2025 09:41 Page 5 A/P Check Register Checks from 04/12/2025 to 05/02/2025
146 Checks total: 597,431.47
0 ACH total:0 EFTPS total:0 Wire transfer total:
19 Payment Manager total: 18,160.97
165 GRAND TOTALS 615,592.44

AGENDA ITEM 3.

DATE: 5/7/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/7/2025
TO: Honorable Mayor and City Council
FROM: Kendra Reed, Finance Manager
APPROVED: Mali LaGoe, City Manager
SUBJECT: Investment Report for the Quarter Ended March 31, 2025

SUMMARY OF ISSUE
Attached is the portfolio performance status report for the City and Supplemental Law Enforcement Fund ("SLESF") investment report for the quarter ended March 31, 2025. This information is for review only. No action is required by the Council.

The City’s investment report submitted herein complies with the City’s investment policy and evidence that there is adequate cash flow to meet the City’s needs for the next six months.

The City traditionally invests excess operating portfolio funds in Local Agency Investment Fund ("LAIF") and to the California Asset Management Program (“CAMP”). CAMP is a California Joint Powers Authority (“JPA”) established in 1989. Investments offered through the Cash Reserve Portfolio (the “Pool” or the “CAMP Pool”) and CAMP Term are permitted for all local agencies under California Government Code Section 53601(p). CAMP is directed by a board of trustees, which is made up of experienced local government finance directors and treasurers.

The revised Investment Policy, which was reviewed and adopted by the City Council June 12, 2024, allows the City to invest an unlimited amount of funds in Joint Powers Authority Pool (JPAP), which operates similarly to LAIF. The updated policy removed the previous 30% limit on investments in JPAP, allowing for an unlimited amount of funds to be invested. This flexibility provides the City with a strategic advantage in responding to changes in interest rates between these two investment options.

The SLESF investment report reflects the latest information available concerning how these monies provided by the State of California for front line police services were invested as of March 31, 2025.

Additional information on the Pooled Money Investment Account (PMIA) and Local Agency Investment Fund (LAIF) are provided from the State Treasurer’s site.

FISCAL IMPACT
There is no fiscal impact of receiving and filing the report.

STAFF RECOMMENDATION
Receive and file an Investment Report for the Quarter Ended March 31, 2025.

TABLE OF CONTENTS

1. FY2425_Q3 Investment Report

TRUSTEE TYPE OF INVESTMENT ISSUER MATURITY DATE FACE VALUE COST MARKET VALUE VALUATION YIELD General Pooled Investments
State of California Local Agency Investment Fund (LAIF) State of California Demand - 1 day 1, $ 1,755,671 755,671 $ 1,757,162 $ [1] LAIF 4.480% Board of Trustees California Asset Management Program (CAMP) CAMP Demand - 1 day 16,543,465 $ 16,543,465 $ 16,543,465 $ CAMP 4.470% Weighted Average Rate for General Pooled Investments 4.471% Section 115 Trust
Charles Schwab Trust Bank Mutual Fund Schwab Demand - 1 day 2,137,851 2,137,851 2,201,223 $ Schwab 2.540% Investments of Bond Proceeds
Bank of New York Mellon US Treasury Notes Bank of New York Mellon Demand - 1 day 395 $ 395 $ 395 $ Bank of New York 3.770%Bank of New York Mellon US Treasury Notes Bank of New York Mellon Demand - 1 day 364,430 $ 364,430 $ 364,430 $ Bank of New York 4.193% [2]Bank of New York Mellon US Treasury Notes Bank of New York Mellon Demand - 1 day 114,209 $ 114,209 $ 114,209 $ Bank of New York 0.000% [1] Interest is paid at maturity. Market Value based on latest factor of 1.000849191 provided by LAIF on 03/31/2025, which has been applied to face value.[2] Weighted average for all accounts.

City of Scotts Valley
Quarterly Investment Report
March 31, 2025
9%
81%
11%
Portfolio Investment Allocation
Local Agency Investment Fund CAMPSection 115 Trust Mutual Funds

FACE VALUE TRUSTEE/INVESTMENT TYPE YIELD
$ 101,323 101,237 $ * California Local Agency Investment Fund (LAIF) 4.480%$ 101,323 101,237 $ * Interest is paid at maturity. Market Value includes accrued interest.

Supplemental Law Enforcement Fund (SLESF)
Quarterly Investment Report
March 31, 2025

MARKET VALUE

12 Months 3/31/2025 2/28/2025 HIGH LOW
Average Life (days) 244 237 257 217
Certificates of Deposit & Bank Notes 9.25% 9.22% 9.40% 8.17% Commercial Paper 6.76% 6.46% 7.06% 5.79%
Treasuries 52.98% 53.01% 59.17% 53.01%

MONTHLY PERFORMANCE
Pooled Money Investment Account
March 2025
MARKET VALUE (%) of BOOK VALUE
Jun-2023 99.2503 Jun-2024 100.5652
Sep-2023 99.4272 Sep-2024 101.2007
Dec-2023 100.2054 Dec-2024 100.9316
Mar-2024 100.2851 Mar-2025 100.9501

97.5 98.0

98.5 99.0

99.5 100.0
100.5
101.0
101.5
102.0
102.5
103.0
103.5
6/23 9/23 12/23 3/24 6/24 9/24 12/24 3/25
Market Value (%) of Book Value

PMIA MARKET VALUATION
PMIA
Market Value
BV=100
Treasuries

52.98%
Agencies

26.95%
Certificates of
Deposit /
Bank Notes
Corporate
Bonds
Loans 0.60%

0.15%
PMIA Portfolio Composition
3/31/2025
$156.8 billion
Average Monthly Yield Comparison - 03/2020 through 03/2025

9.25%
Time
Deposits

3.31%
Commercial
Paper

6.76%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
PMIA
S&P
Fed Funds
March Yields
PMIA 4.313%
3/2020 6/2020 9/2020
12/2020
3/2021 6/2021 9/2021
12/2021
3/2022 6/2022 9/2022
12/2022
3/2023 6/2023 9/2023
12/2023
3/2024 6/2024 9/2024
12/2024
3/2025
S&P GIP 4.530%
Fed Funds 4.310%
Percentages may not total 100%, due to rounding.

March 4.313
February 4.333
January 4.366
December 4.434
November 4.477
October 4.518
PMIA Average Life(1): 244
LAIF Fair Value Factor(1): 1.000849191
PMIA Daily(1): 4.30
PMIA Quarter to Date(1): 4.34
LAIF Apportionment Rate(2): 4.48
LAIF Earnings Ratio(2): 0.00012266258268207
LAIF Administrative Cost(1)*: TBD
Treasuries

52.98%
Agencies

26.95%
Certificates of
Deposit/Bank Notes

9.25%
Time
Deposits

3.31%
Commercial
Paper

6.76%
Corporate
Bonds

0.60%
Loans

0.15%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a). *The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.

Source:
(1) State of California, Office of the Treasurer
(2) State of California, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 04/16/25
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 3/31/25
Chart does not include $1,138,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
3/31/25
$156.8 billion

AGENDA ITEM 4.

DATE: 5/7/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/7/2025
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Selection and direction to enter into a professional services agreement for auditing services

SUMMARY OF ISSUE
With the completion of the Fiscal Year 2023/24 audit, the contract with Badawi & Associates is completed. Local agencies are required to have audit services provided by a certified public accountant or public accountant, licensed by, and in good standing with, the California Board of Accountancy. In addition, agencies cannot have a public accounting firm provide audit services to a local agency if the lead audit partner has performed audit services for that local agency for six consecutive fiscal years. If the firm has multiple partners able to rotate, the same firm may be used with a different partner assigned to the engagement.

In February 2025, the City issued an RFP requesting interested firms submit proposals to demonstrate their qualifications, competence, and capacity. The RFP was to be for audit services covering three fiscal years commencing with June 30, 2025–2027, with the option to extend services for two additional fiscal years. The City received two responsive proposals from Badawi & Associates and SingerLewak. Based on the evaluation criteria, Staff found Badawi & Associates to be the most qualified and cost-effective. Badawi & Associates proposal meets the requirement of being able to rotate a different partner be assigned to the engagement.

In addition, the proposal allows for additional professional out-of-scope services to be rendered at stated hourly rates. The City is in the process of reviewing different accounting structures and may utilize certain services during this period.

FISCAL IMPACT
Estimated cost per fiscal year of professional auditing services is less than $50,000 per year, with the three-year period estimated to be $132,545 and the full five years, if extended, to be $227,676.

STAFF RECOMMENDATION
It is recommended that the City Council approve selecting Badawi & Associates proposal as the City's professional auditing firm for the next three fiscal year periods commencing with

June 30, 2025, with the option to extend the additional two fiscal years, and direct the City Manager to enter into a Professional Services Agreement based on the proposed fee schedule, with an additional 5% for out-of-scope services, approved as to form by the City Attorney.

TABLE OF CONTENTS

1. Badawi & Associates Proposal

City of
Scotts Valley

TECHNICAL PROPOSAL
For Professional Auditing Services for
the City of Scotts Valley
For fiscal years ending June 30, 2025 through 2027,
with the option of extending the contract for each of
the two (2) subsequent fiscal years.

March 3, 2025
Contact Person:

Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Phone: (510) 768-8244
Fax: (510) 768-8249
E-mail: [email protected]

City of Scotts Valley
Table of Contents
Page
Letter of Transmittal ................................................................................................................................................... 1 Firm Qualifications and Experience .......................................................................................................................... 3 Independence ........................................................................................................................................................... 3 Insurance .................................................................................................................................................................. 3 License to Practice in California................................................................................................................................ 3 Conflict of Interest ..................................................................................................................................................... 3 Firm Qualifications .................................................................................................................................................... 3 Technical Approach .................................................................................................................................................. 4 Firm Experience ........................................................................................................................................................ 5 Additional Activities ................................................................................................................................................... 5 Client Training Seminar ............................................................................................................................................ 6 GASB 68 Firm Developed Tools and Assistance ..................................................................................................... 6 Flowcharting Documentation .................................................................................................................................... 6 Quality Control Review ............................................................................................................................................. 6 Federal or State Desk Reviews ................................................................................................................................ 9 Disciplinary Action ..................................................................................................................................................... 9 Litigations .................................................................................................................................................................. 9 Partner, Supervisory, and Staff Qualifications and Experiences ........................................................................ 10 Similar Engagements with Other Governmental Entities ..................................................................................... 16 Understanding of Services to be Provided ............................................................................................................ 21 Specific Audit Approach .......................................................................................................................................... 22 Objectives of Our Services ..................................................................................................................................... 22 Audit Approach ....................................................................................................................................................... 22 Technical Approach ................................................................................................................................................ 23 Use of Technology in the Audit ............................................................................................................................... 26 Audit Schedule .......................................................................................................................................................... 28 Discussion of Relevant Accounting Issues ........................................................................................................... 31 Comprehensive Cost Bid ......................................................................................................................................... 32 Conclusion ................................................................................................................................................................. 34 Appendix .................................................................................................................................................................... 35 References .............................................................................................................................................................. 35 Exceptions to the Contract ...................................................................................................................................... 36

March 3, 2025
Letter of Transmittal
Ms. Stephanie Hill
Administrative Services Director
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
Dear Ms. Hill:

Badawi & Associates (B&A), Certified Public Accountants (the “Firm”) is pleased to have the opportunity to respond to your request for a proposal to provide external audit services and to submit its qualifications to perform an independent audit of the financial statements of the City of Scotts Valley (the “City”) for the fiscal years ending June 30, 2025 through 2027, with the option of extending the contract for each of the two (2) subsequent fiscal years. The objective of our audits is to issue opinions regarding the fairness of presentation of the financial position of the City in accordance with generally accepted accounting principles. These audits are to be performed in accordance with generally accepted auditing standards, the standards set forth for financial audits in the Government Accountability Office’s (GAO) Government Auditing Standards, the provisions of the federal Single Audit Act of 1984, as amended in 1996, and the Uniform Guidance, Audits of States, Local Governments and Non-Profit Organizations, Uniform Administrative Requirements, as well as any other applicable federal, state, local or programmatic audit requirements.

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

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

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

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

Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Telephone: (510)768-8244
E-mail: [email protected]

Ms. Stephanie Hill
Administrative Services Director
City of Scotts Valley

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

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

The approach to the audit has been designed to meet the audit requirements of the City with the least disruption to the City’s office operations. The foundation of the audit approach is based on communication coupled with a strong knowledge of City operations and detailed planning at the initial stages of the audit. Open communication lines with all parties of the Engagement Team and City Management and staff throughout the engagement eliminate “surprises”.

Initial planning and proper assignment of duties to experienced personnel provide for an effective and efficient audit process. Consequently, inefficiencies and disruptions are kept to a minimum. In addition, we perform almost half of the audit tasks during the interim phase to minimize any unforeseen delays during the year-end phase and to ensure a smooth and timely audit process.

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

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

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

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

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

Sincerely,
Ahmed Badawi
Partner
Badawi & Associates
Certified Public Accountants

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

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

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

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

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

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

Firm Qualifications
Badawi & Associates was founded by Mr. Ahmed Badawi. Mr. Badawi has over 25 years of experience working with state and local government with a special focus on cities. Prior to founding B&A, Mr. Badawi was a partner with several local and national firms, where he headed their government practice in Northern California. Mr. Badawi founded Badawi & Associates to serve the fast-paced needs of California's local governments. The goal is to build a proactive, client-focused culture from the ground up and to eliminate the entrenched bureaucratic culture and intrinsic limitations of the big audit firms.

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

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

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

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

The Engagement Partner assigned to the City will be Mr. Mitesh Desai, CPA. Mr. Desai’s background includes seventeen years of experience in municipal auditing. Mr. Desai has participated in the audits of numerous governmental agencies, assisted in their efforts to publish their Annual Comprehensive Financial Reports in compliance with GASB 34, and a volunteer member of the GFOA Special Review Committee. Mr. Desai is responsible for conducting inhouse trainings for staff auditors and is credentialed with the Advanced Single Audit Certificate offered by the AICPA. He will serve as the Engagement Quality Reviewer.

Firm
Qualifications
and
Experience

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Flowcharting Documentation
As part of our risk assessment procedures, we prepare flowcharts for documenting our understanding of the City’s significant accounting and financial processes. Flowcharts are updated annually for any changes in the City’s processes and copies can be provided upon request for the City’s internal use. Flowcharted processes may include:
 Financial Reporting, Closing, and Manual Journal Entries  Cash Receipts, Billing, and Accounts Receivable/Revenues  Cash Disbursements, Purchasing, and Accounts Payable/Expenditures  Payroll and Human Resources
Quality Control Review
According to Government Auditing Standards, firms who perform audits under the Yellow Book are required to have a peer review once every three years. We received a report with a rating of pass with no deficiencies which we attached for your review.

City of Scotts Valley Technical Proposal
7

City of Scotts Valley Technical Proposal
8

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

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

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

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

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

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

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

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

The second member of the Engagement Team will be Saleh Yassin, CPA. Mr. Yassin’s background includes eleven years of accounting and auditing experience. He has participated in the audits of numerous governmental entities and assisted in their efforts to publish their financial statements in compliance with various regulations and is a volunteer member of the GFOA Special Review Committee. Mr. Yassin will be the Audit Manager of this engagement.

The third member of the Engagement Team will be Omar Rahman, CPA, CISA. Mr. Rahman has over 10 years of experience in the field of Information Technology (IT) audit and risk management at the senior and executive management level. He has worked extensively with government agencies, private organizations, and public companies, providing external and internal audit services in support of financial statement audits. Mr. Rahman will serve as the I.T.

Specialist of this engagement.

The fourth member of the Engagement Team will be Ahmed Badawi, CPA. Mr. Badawi’s background includes over twenty-five years of municipal auditing experience with a special focus on cities. He is the instructor of the CSMFO “Introduction to Governmental Accounting” training classes. Mr. Badawi is a member of the Government Accounting and Auditing Committee of the California Society of Certified Public Accountants. He has participated in the audits of numerous City, county and special district governments, as well as non-profit entities.

His diversified background offers the technical qualities required of the governmental and nonprofit areas and the necessary wherewithal to properly evaluate the entire accounting process, develop opportunities to improve the accounting process, and to offer practical business recommendations. He will serve as the Engagement Quality Reviewer.

Engagement Partner
Mitesh Desai
CPA
Audit Manager
Saleh Yassin
CPA
Engagement Quality
Reviewer
Ahmed Badawi
CPA
Professional
Audit Staff
Professional
Audit Staff
IT Specialist
Omar Rahman,

CPA, CISA
Partner,
Supervisory,
and Staff
Qualifications
and
Experiences

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

Professional Development:

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

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

The Engagement Team members will continue their professional development efforts.

Staff Retention and Continuity:

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

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

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

Resumes of each member of the Engagement Team follow.

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

Antioch x xx x x x
Azusa xx xxx
Albany xx
Berkeley x xx x x x
Buena Park x xx xx
Calimesa xx x
Crescent City xx xxx
Dublin x x xx x
East Palo Alto xx xx
El Cerrito xx x
Foster City xx xxx
Fremont xx xxx
Lemon Grove xx x x x
Lindsay xx x
Menlo Park xx xxx
Millbrae xx xxx
Newark xx x x
Oakdale x xx xxx
Pittsburg xx xxx
Placerville xx xx
Scotts Valley xx x xxx
Sebastopol x x xxx
Solvang xx x
Union City x x xx x x x
Waterford x xxx
Yuba City xx x xxx
Child Care Programs:

Menlo Park Child Care xx
Counties:

Contra Costa x x x x x
Santa Cruz x x x x x
Special Districts and Other:

Marin Municipal Water District x
West County Wastewater District xx

City of Scotts Valley Technical Proposal
13 Saleh Yassin, Certified Public Accountant – Professional Audit Manager Length of Career
 Eleven years of experience in auditing
 Certified Public Accountant for the State of California Professional Experience
 Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation Development audits, and housing audits
Education
 BA Degree in Accounting from University of Asmara, Eritrea Professional Activities
 Member, American Institute of Certified Public Accountants  Member of the Association of Chartered Certified Accountants  Volunteer Member, GFOA Special Review Committee
Continuing Education
 Various municipal accounting courses offered by the California Society of CPAs and local universities including:
- Governmental Financial Reporting Standards and Practices - Yellow Book: Government Auditing Standards
- Municipal Accounting
- Single Audit
 Has met the current CPE educational requirements to perform audits on governmental agencies Services Provided
Financial
Audit
Single
Audit
TDA
Audit
RDA
Audit
Enterprise
Fund Other
Cities/Towns:

Antioch x x x x x x
Azusa x x x x x
Berkeley x x x x x x
Chino x x x x
Dinuba x x x x x
Foster City x x x x x
Glendora x x x x x
Healdsburg x x x x x
Larkspur x x x x
Oakdale x x x x x x
Petaluma x x x x x x
Richmond x x x x x x
San Luis Obispo x x x x
Sebastopol x x x x
Solvang x x
Union City x x x x x x
Wasco x x x x x
Yuba City x x x x x
Albany x
East Palo Alto x x x x
El Cerrito x x x
Newark x x x x
Pinole x x x x
Vacaville x x x x
Yountville x x x
Special Districts:

San Ramon Valley Fire Protection District x x
Solano County Water Agency x
Southern Marin Fire Protection District x
Central County Fire District x
Zayante Fire Protection District x
Hayward Area Recreation and Park District x x
Regional Government Services Authority x
San Mateo Mosquito District x
Sutter Animal Services Authority x
Sutter Butte Flood Control Agency x
Non-profits:

Housing Endowment and Regional Trust x
Newark Betterment Corporation x

City of Scotts Valley Technical Proposal
14 Omar Rahman, Certified Public Accountant, Certified Information System Auditor – Information Technology Specialist
Length of Career
 Over ten years of experience auditing information technology (IT) processes and controls  Certified Public Accountant for the State of California  Certified Information System Auditor
Areas of Expertise
 IT risk consulting and audit services for governmental entities, private/public companies, nonprofits, and professional service organizations
 External and internal IT audit services in support of financial statement audits  Technical guidance/support on IT risks and controls in relation to SOX 404a and SOX 404b compliance, NIST 800-53/171a, Cyber Security Framework, HIPAA Technical Safeguards, CCPA/GDPR compliance, COBIT 2019 Framework
 Managed entire life cycle of IT internal and external audit engagements from planning research, audit program development, fieldwork and reporting
 Assess risks related to IT processes/assets and corresponding applications/tools  IT control testing over business automated controls, general IT controls, and cyber security controls as well as IT substantive testing over information systems.

Partial list of governmental clients served:
- City of Berkeley
- City of Chino
- City of Dinuba
- City of Dublin
- City of Healdsburg
- City of Jurupa Valley
- City of Lathrop
- City of Laverne
- City of Lemon Grove
- City of Ontario
- City of Pomona
- City of Richmond
- City of San Carlos
- City of Sausalito
- City of San Luis Obispo
- City of Foster City
- Sacramento Metropolitan Fire District
- Sacramento Employment and Training Agency
- Union Sanitary District
Presentations
 November 2017 - Institute of Internal Auditors - General IT Controls for Internal Audit  December 2018 - Institute of Internal Auditors - SDLC Process and Audit/Risk Considerations  February 2019 - IT Audit for Business Process Professionals  May 2019 - IT Internal Audit Emerging Technologies: Data Analytics  September 2019 - Information Systems Audit and Control Association Education
 B.S. Degree in Economics, University of California, Los Angeles, CA.

Professional Activities
 Certified Public Accountant - California
 Certified Public Accountant - Ohio
 Certified Information System Auditor

City of Scotts Valley Technical Proposal
15 Ahmed Badawi, Certified Public Accountant – Engagement Quality Reviewer Length of Career
 Over twenty-five years of experience in municipal auditing and accounting with a special focus on cities
 Certified Public Accountant for the State of California Professional Experience
 Partial listing of clients served:
 Has performed numerous financial audits, Single Audits, Transportation Development Act audits, housing audits, electrical utility audits, RDA audits, PFA audits, and Trust Fund audits, and has prepared numerous Annual Comprehensive Financial Reports Education
 BS Degree in Accounting from the University of Alexandria, Egypt Professional Activities
 Instructor, CSMFO’s “Introduction to Governmental Accounting” training class  Member, CALCPA Government Accounting and Auditing Committee  Member, American Institute of Certified Public Accountants  Member, California Society of Certified Public Accountants  Member, Government Finance Officers Association
 Member, California Society of Municipal Finance Officers Continuing Education
 Has met the current CPE educational requirements to perform audits on governmental agencies Services Provided
Financial
Audit
Single
Audit
TDA
Audit
RDA
Audit
Enterprise
Fund Other
Cities/Towns:

Antioch x x x x x x
Atwater x x x x
Azusa x x x x x
Berkeley x x x x x x
Chino x x x x
Compton x
Cotati x x x
Crescent City x x x x x
Dinuba x x x x x
Dublin x x x x
Folsom x x x x x
Foster City x x x x x
Glendora x x x x x
Guadalupe x x x x x
Healdsburg x x x x x
La Verne x x x x
Lafayette x x x x
Larkspur x x x x
Lathrop x x x x
Lemon Grove x x x x
Millbrae x x x x x
Oakdale x x x x x x
Ontario x x x x x
Petaluma x x x x x x
Pomona x x x x x
Richmond x x x x x x
San Bruno x x x x x
San Carlos x x x x x x
San Luis Obispo x x x x
Sausalito x x x x
Scotts Valley x x x x x
Counties:

Contra Costa County x x x x x
Santa Cruz County x x x x x
Special Districts and Other:

Alameda County Water District x x x
East Bay Regional Park District x x x

City of Scotts Valley Technical Proposal
16 The tables below and on the following page are a partial listing of our clients similar to the City, and illustrates the many different types of components involved in each audit engagement that present very difficult and complex auditing and accounting challenges (in order of audit hours). ** Indicates cities with population over 50,000
** Indicates cities with governmental revenues over $100 million and population over 50,000 City Client Since Hours Engagement Partner Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
RDA/Successor Agency
Single Audit
TDA
Water Fund
Sewer Fund
SCO Report
Housing Authority
Enterprise Funds
Pension Trust Fund
** Richmond 2020 2,338 Ahmed
Badawi
Andrea Miller
Finance Director
(510) 412-2077
[email protected]

X XXX XXXXX
** Berkeley 2008 1,505 Mitesh
Desai
Henry Oyekanmi
Finance Director
(510) 981-7300
[email protected]

X XXXX X XX
** Ontario 2021 1,012 Ahmed
Badawi
Doreen Nunes
Assistant Director of Finance
(909) 395-2000
[email protected]

X XXX XXXXX
San Carlos 2023 865 Ahmed
Badawi
Rebecca Mendenhall
Administrative Services Director
(650) 802-4213
[email protected]

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

X XXXX X X
** Folsom 2019 786 Ahmed
Badawi
Stacey Tamagni
Finance Director
(916) 461-6712
[email protected]

X XXX XX X
** Pomona 2023 756 Ahmed
Badawi
Andrew Mowbray
Finance Director/City Treasurer
(909) 620-2353
[email protected]

X XXX XXX X
** Mountain View 2024 741 Ahmed
Badawi
Derek Rampone
Finance & Administrative Services Director
(650) 903-6316
[email protected]

X X XXXXX X
* Petaluma 2019 691 Ahmed
Badawi
Corey Garberolio
Assistant Finance Director
(707) 778-4357
[email protected]

X XXXXXXX X
La Verne 2023 691 Ahmed
Badawi
Christy Lopez
Finance Director
(909) 596-8752
[email protected]

X X XX X
* San Luis
Obispo 2019 638 Ahmed
Badawi
Emily Jackson
Finance Director
(805) 781-7125
[email protected]

X X XXXX
Similar
Engagements
with Other
Governmental
Entities

City of Scotts Valley Technical Proposal
17 City
Client Since
Hours
Engagement Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
RDA/Successor Agency
Single Audit
TDA
Water Fund
Sewer Fund
SCO Report
Housing Authority
Enterprise Funds
Pension Trust Fund
Chino 2023 621 Ahmed
Badawi
Sue Suriati
Fiscal Services Manager
(909) 334-3347
[email protected]

X X X XX X
* Antioch 2005 586 Mitesh
Desai
Dawn Merchant
Finance Director
(925) 779-6135
[email protected]

X XXXXXX X
Lafayette 2020 586 Ahmed
Badawi
Jennifer Wakeman
Assis. Administrative Services Director
(925) 299-3213
[email protected]

X XX X X
Lathrop 2023 585 Ahmed
Badawi
Thomas Hedegard
Deputy City Manager
(209) 941-7329
[email protected]

X X XXX XX
Sausalito 2023 559 Ahmed
Badawi
Chad Hess
Finance Director
(415) 289-4150
[email protected]
X XX X
Dinuba 2023 556 Ahmed
Badawi
Karina Solis
Administrative Services Director
(559) 591-5900
[email protected]

X XXX XXX X
** Dublin 2018 546 Mitesh
Desai
Jay Baksa
Finance Director
(925) 833-6648
[email protected]

X X XX X
Azusa 2017 540 Mitesh
Desai
Talika Johnson
Administrative Services Director
(626) 812-5202
[email protected]

X XXX XX X
Foster City 2023 540 Ahmed
Badawi
Waqas Hassan
Assistant Finance Director
(650) 286-3204
[email protected]

X XXX XX X
Millbrae 2015 550 Mitesh
Desai
Mike Sung
Finance Director
(650) 259-2433
[email protected]

X XXX XX X
Glendora 2022 487 Ahmed
Badawi
Kyle Johnson
Finance Director
(626) 914-8245
[email protected]

X XXX X XXX
San Bruno 2022 486 Ahmed
Badawi
Nick Pegueros
Chief Financial Officer
(650) 616-7054
[email protected]

X X XXXXX X
Healdsburg 2023 452 Ahmed
Badawi
Katie Edgar
Finance Director
(707) 431-3184
[email protected]

XX XXX X

City of Scotts Valley Technical Proposal
18 City
Client Since
Hours
Engagement Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
RDA/Successor Agency
Single Audit
TDA
Water Fund
Sewer Fund
SCO Report
Housing Authority
Enterprise Funds
Pension Trust Fund
* Yuba City 2017 450 Mitesh
Desai
Diona Pope
Finance Director
(530) 822-4615
[email protected]

X XXX XXX X
Larkspur 2019 437 Ahmed
Badawi
Emilia Gabriele
Administrative Services Director
(415) 927-5016
[email protected]
X XX
Wasco 2021 428 Ahmed
Badawi
Isarel Perez-Hernandez
Finance Director
(661) 758-7230
[email protected]

X XXXXXX
Atwater 2021 380 Ahmed
Badawi
Anna Nicholas
Finance Director
(209) 357-6310
anicholas@@atwater.org

XX XXXX
Lemon Grove 2022 377 Ahmed
Badawi
Stacey Tang
Finance Director
(619) 825-3803
[email protected]
X XX X
Scotts Valley 2019 311 Ahmed
Badawi
Stephanie Hill
Administrative Services Director
(831) 440-5614
[email protected]

X XX X X
Waterford 2018 311 Mitesh
Desai
Tina Envia
Finance Manager
(209) 874-2328 Ext: 104
[email protected]
X XX X
Solvang 2019 308 Mitesh
Desai
Wendy Berry
Administrative Services Director
(805) 688-5575 x 205
[email protected]

X X X XXX X
Guadalupe 2017 303 Mitesh
Desai
Janice Davis
Finance Director
(805) 356-3895
[email protected]

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

XX XX XX

City of Scotts Valley Technical Proposal
19 The table below lists all special district engagements (in order of audit hours):

Special District
Client Since
Hours
Engagement
Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
Single Audit
Enterprise Funds
San Gabriel Valley Council
of Governments 2021 618 Ahmed Badawi
Rey Alimoren
Director of Finance
(626) 962-9292
[email protected]
No N/A X X
Sacramento Employment
and Training Agency 2023 540 Ahmed Badawi
D'et Saurbourne
Administrative Services Deputy Director
(916) 263-3811
D'[email protected]
No N/A X
Sacramento Metropolitan
Fire District 2023 519 Ahmed Badawi
Dave O'Toole
Chief Financial Officer
(916) 859-4300
[email protected]
Yes Yes X
County of Contra Costa
Community Services
Bureau Child Development
Program
2013 450 Mitesh
Desai
Donn Matsuzaki
Fiscal Officer
(925) 608-4832
[email protected]
No N/A
Union Sanitary District 2023 362 Ahmed
Badawi
Mark Carlson, CPA
CFO/Business Services Manager
(510) 477-7510
[email protected]
Yes Yes X
Florin Resource
Conservation District/
Elk Grove Water District
2015 350 Mitesh
Desai
Patrick Lee
Finance Manager / Treasurer
(916) 685-3556
[email protected]
Yes Yes X
Hayward Area Recreation
and Park District 2017 350 Mitesh Desai
Anne Maze
Administrative Services Director
(510) 881-6707
[email protected]
No N/A X
San Ramon Valley Fire
Protection District 2021 285 Ahmed Badawi
Ms. Davina Hatfield
Chief Financial Officer
(925) 838-6668
[email protected]
Yes Yes X
San Mateo Mosquito and
Vector Control District 2018 228 Ahmed Badawi
Richard Arrow
Finance Director
(650) 344-8592
[email protected]
Yes Yes
Monterey Bay Unified Air
Pollution Control District 2016 200 Mitesh Desai
Rosa Rosales
Administrative Services Manager
(831) 718-8019
[email protected]
No N/A
Ross Valley Fire
Department 2021 190 Ahmed Badawi
Jeff Zuba
Finance & Admin. Services Director
(262) 989-2208
[email protected]
No N/A
Southern Marin Fire
Protection District 2020 160 Ahmed Badawi
Alyssa Schiffmann
Finance Manager
(415) 388-8182
[email protected]
No N/A
Alameda County Waste
Management Authority
(StopWaste)
2018 154 Mitesh
Desai
Jennifer Luong
Finance Services Manager
(510) 891-6500
[email protected]
Yes Yes
Central County Fire
Department 2012 150 Mitesh Desai
Jan Cooke
Finance Director
(650) 375-7408
[email protected]
Yes Yes

City of Scotts Valley Technical Proposal
20 Special District
Client Since
Hours
Engagement
Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
Single Audit
Enterprise Funds
Central Fire Protection
District of
Santa Cruz County
2018 150 Mitesh
Desai
Nancy Dannhauser
Finance Director
(831) 479-6842
[email protected]
No N/A
Port of San Luis
Harbor District 2017 150 Mitesh Desai
Suzy Watkins
Harbor Director
(805)595-5414
[email protected]
Yes Yes X
Resource Conservation
District of Santa Cruz
County
2017 150 Mitesh
Desai
Arianne Rettinger
Director of Finance
(831) 594-8109
[email protected]
No N/A X
Santa Cruz
Regional 9 - 1 - 1 2016 150 Mitesh Desai
Amethyst Uchida
General Manager
(831) 471-1035
[email protected]
No N/A
Marin Wildfire Prevention
Authority 2021 106 Ahmed Badawi
Alyssa Schiffmann
Finance Manager, SMFPD
(415) 952-5859
[email protected]
No N/A

City of Scotts Valley Technical Proposal
21 The City desires an audit of the financial records for the City and an expression of an opinion in accordance with generally accepted accounting principles on the fairness of presentation of financial statements for the fiscal years ending June 30, 2025 through 2027, with the option of extending the contract for each of the two (2) subsequent fiscal years.

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

In addition, make working papers available to the City and/or any government agency as appropriate.

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

Understanding
of Services to
be Provided

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

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

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

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

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

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

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

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

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

Specific Audit
Approach

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

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

1. Planning, Understanding and Communication:

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

2. In-Depth Review of Systems and Controls:

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

3. Risk-Based Customized Testing Program:

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

4. Expanded Interim Fieldwork:

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

City of Scotts Valley Technical Proposal
24 5. Smooth Transition:

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

6. Sample Size and Sampling Techniques:

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

7. Automated Systems:

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

8. Analytical Procedures:

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

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

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

10. Report Format:

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

11. Work Plans:

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

City of Scotts Valley Technical Proposal
25 12. Adjusting Journal Entries:

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

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

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

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

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

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

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

City of Scotts Valley Technical Proposal
27 Audit Planning, Risk Assessment, and Audit Programs
Our firm utilizes CCH Knowledge Coach, which is an expert system that adapts and customizes our audit approach specifically based on the City’s structure, operating environment, specific transactions, and identified risks or matters to be addressed in the audit. The software is frequently updated for new industry trends and audit requirements. Included in the software is a continuous diagnosis of audit forms that identifies missing information, procedures, or any conflicts that need to be addressed prior to issuance of the audit report. We have found that this audit tool greatly benefits our audit clients in the following ways:
 Removal of standardized audit steps and procedures that do not add value to the audit  Targeted audit procedures focusing on risks and accounts specific to the City’s operations
 Audit is always performed in accordance with audit standards especially the risk assessment standards
 Maximizing audit efficiency having less City staff time dedicated to gathering information or responding to inquiries by focusing on material issues  Automatic self-diagnostics ensure no audit steps are missed, guaranteeing a quality audit
Research Tools
We maintain multiple research software packages that are always kept up to date to ensure compliance with accounting and auditing standards, and are also a resources for us to provide guidance to our clients. In addition to accounting and audit literature, we have access to interactive disclosure checklists that include sample footnote disclosures and financial statements.

City of Scotts Valley Technical Proposal
28 2025
Period Audit Tasks
April - Planning and Administration
 The entrance conference shall be held with City staff. The purpose of this meeting will be to discuss prior audits and the interim work to be performed. This meeting will also be used to establish overall liaison for the audits and to make arrangements for work space and other needs
 Review and evaluate the City's accounting and financial reporting.

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

City of Scotts Valley Technical Proposal
29 2025
Period Audit Tasks
May - Other Tasks
 Review minutes of City Council meetings and other key committees  Perform preliminary substantive procedures, which would include tests of:
o Vendor and contractor payments
o Payroll expense
o Utility billing
o Pension and OPEB testing
o Capital asset acquisitions
o Journal entries
o Retrospective review of accounting estimates
 Financial statement database management and other setup, in addition to drafting of all necessary report templates
 Preliminary Single Audit and other compliance testing  Coordinate with City staff and prepare of all appropriate confirmation requests including:
o Bank accounts
o Investment pool accounts
o Accounts receivable
o Federal grants
o Revenue from governmental agencies
o Bond and other debts
o Pension plan
o Attorney letters
o Others, as required
 Update the Organizer with any additional requests that will be needed for the City's audit
 Provide the City with audit plan and list of year-end audit schedules  Hold progress conference with City Management
 Hold exit conference with City Management
November - Final Fieldwork
 Entrance conference with City Management
 Follow-up on all outstanding confirmations
 Verify and validate account balances by reviewing supporting documentation including invoices, vouchers, council resolutions, minutes, and other documents, as required
 Perform analytical review of revenue and expenditures. Determine reason for material differences between budget and actual  Perform a search for unrecorded liabilities by reviewing disbursements subsequent to June 30, testing terms of contractual obligations, and interviewing City staff
 Perform review of subsequent events by discussions with City Management and update all minutes of City Council and key committees

City of Scotts Valley Technical Proposal
30 2025
Period Audit Tasks
- Single Audit Compliance
 Entrance conference with City Management
 Obtain Federal Financial Assistance Schedule
 Determine grants to be considered as major programs including clusters
 Perform audit tests of major grant programs and compliance with Federal Law and Regulations
 Review grant documents, select sufficient number of transactions to test for compliance of Federal Requirements
 Coordinate Single Audit efforts with the Financial Audit efforts  Communicate findings to City Management
 Other Compliance
December
December 20
- Audit Reports
 Complete drafts of City’s Annual Comprehensive Financial Report  Prepare draft of Single Audit Reports concerning internal control structure, compliance with laws and regulations, and administering of federal financial assistance programs
 Prepare other reports as required
 Provide revised final drafts of all required reports to the City for approval
- Final City Audit Reports, Financial Statements, Single Audit Reports, and other reports delivered by no later than December 20th.

January 2026 - Audit Presentation to Council (if requested) - State Controller’s Reports delivered and submitted
- Single Audit Report package submitted to Federal Audit Clearinghouse
Note: the proposed audit schedule above can be adjusted as necessary based on the needs of the City.

Estimated Hours by Audit Phase
Position Planning
Interim
Fieldwork
Year End
Fieldwork Reporting Total
Partner 5 7 15 5 32
Audit Manager 8 34 38 14 94
Professional Audit Staff - 56 74 11 141
IT Specialist - 5 - - 5
Administrative Assistant 9 2 13 15 39
Total 22 104 140 45 311

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

Several new GASB pronouncements will become effective over the time period of this proposal.

As such, specific attention will be provided to determine the proper implementation of these new pronouncements. A list of known new pronouncements with implementation dates that fall within this proposal period are as follows:
2025
 Statement 101 – Compensated Absences
 Statement 102 – Certain Risk Disclosures
2026
 Statement 103 – Financial Reporting Model Improvements  Statement 104 – Disclosure of Certain Capital Assets

Discussion of
Relevant
Accounting
Issues

City of Scotts Valley Technical Proposal
32 Schedule of Professional Fees
Note: The above is an all-inclusive maximum price, including services, out-of-pocket expenses, meals, lodging, transportation, printing, and other costs.

Optional
Year
Optional
Year
2024-25 2025-26 2026-27 2027-28 2028-29
Financial Statements Audit 233 32,055 $ 33,017 $ 34,008 $ 35,028 $ 36,079 $ Single Audit 22 2,990 3,080 3,172 3,267 3,365
Gann Limit Agreed-upon Procedures 8 1,085 1,118 1,152 1,187 1,223 State Controller’s Report 16 2,250 2,318 2,388 2,460 2,534 Street Report 16 2,250 2,318 2,388 2,460 2,534
Measure D Audit 16 2,250 2,318 2,388 2,460 2,534
Total 311 42,880 $ 44,169 $ 45,496 $ 46,862 $ 48,269 $
Description
2025
Hours
Hours Rates Hours Rates Hours Rates Hours Rates Hours Rates Partner 32 300 $ 31 310 $ 30 320 $ 30 $330 30 $340
Audit Manager 94 225 88 230 86 235 86 240 86 245
Professional Audit Staff 141 125 132 130 128 135 128 140 128 145 IT Specialists 5 225 5 230 5 235 5 240 5 245
Administrative Assistant 39 100 37 105 35 110 35 115 35 120 Total Hours 311 293 284 284 284
Total Cost
Discount
Total not to exceed fees
Optional Year
Position
Optional Year
2024-25 2025-26 2026-27 2027-28 2028-29
$ 52,045 53,400 $ 52,115 $ 53,685 $ 55,255 $
(7,876) (10,520) (6,619) (6,823) (6,986)
$ 44,169 42,880 $ 45,496 $ 46,862 $ 48,269 $
Comprehensive
Cost Bid

City of Scotts Valley Technical Proposal
33 Manner of Payment:

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

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

Rates for Additional Professional Services:

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

Position Hourly Rate
Partner $ 300
EQR 300
Manager 225
Senior 175
Staff 125
I.T. 225
Admin. 100

Our Standard Hourly Rates are adjusted annually by 3% for Cost of Living and Inflation Adjustments

City of Scotts Valley Technical Proposal
34 A client relationship with the City will be of great value to our Firm and we welcome the opportunity to develop a long-term relationship with the City. We are committed to:
 Rendering the highest standard of service
 Developing a long-term working relationship dedicated to meeting the needs of the City  Assisting the City in operational issues
 Producing a quality end-product
We have the technical qualifications and experience to provide the level of service desired and expected by the City and stand ready to provide our knowledge and experience for the benefit of your organization.

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

Thank you for allowing us to present our Firm to you.
* * * * * * * * * * * * * * * * *

Conclusion

City of Scotts Valley Technical Proposal
35 References
1) City of Berkeley
 Scope of Work: Annual Comprehensive Financial Report, Single Audit, SAS 114, Gann Limit, Measure B/BB/F (Alameda County), TDA Audit, RDA Successor Agency
 Engagement Partner: Ahmed Badawi (2008 – 2019), Mitesh Desai (2020 - Present)  Address: 2180 Milvia Street, Berkeley, CA 94704
 Principal Contact:

Mr. Henry Oyekanmi, Finance Director
(510) 981-7332
[email protected]
2) City of Richmond
 Scope of Work: Annual Financial Report, Single Audit, SAS 114, Gann Limit, Joint Powers Financing Authority, TDA, State Controller’s Reports  Engagement Partner: Ahmed Badawi (2020 - Present)
 Address: 450 Civic Center Plaza, Richmond, CA 94804
 Principal Contact:

Ms. Andrea Miller, Finance Director
(510) 412-2077
[email protected]
3) City of San Luis Obispo
 Scope of Work: Annual Comprehensive Financial Report, Single Audit, SAS 114, Gann Limit, Whale Rock Commission
 Engagement Partner: Ahmed Badawi (2019 – Present)
 Address: 990 Palm Street, San Luis Obispo, CA 93401
 Principal Contact:

Ms. Emily Jackson, Finance Director
(805) 781-7125
[email protected]
4) City of Antioch
 Scope of Work: Annual Comprehensive Financial Report, Single Audit, SAS 114, Gann Limit, Antioch Public Financing Authority, Antioch Area Public Facilities Financing Agency
 Engagement Partner: Ahmed Badawi (2005 – 2019), Mitesh Desai (2020 - Present)  Address: Third and H Streets, Antioch, CA 94509
 Principal Contact:

Ms. Dawn Merchant, Finance Director
(925) 779-6135
[email protected]
5) City of Millbrae
 Scope of Work: Annual Comprehensive Financial Report, Single Audit, SAS 114, Gann Limit, Measure A, Measure M, Measure W
 Engagement Partner: Ahmed Badawi (2015 – 2020), Mitesh Desai (2021 – Present)  Address: 621 Magnolia Avenue, Millbrae, CA 94030
 Principal Contact:

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

Appendix

City of Scotts Valley Technical Proposal
36 Exceptions to the Contract
With regard to the sample contract, RFP Appendix A, Agreement for Professional Services, we would like to edit the paragraphs as follows:

9. Documents: Unless such property is proprietary in nature, notes, studies, chain, computations, electronic files, and other data and information obtained by CONSULTANT for this project shall, upon receipt of payment for services rendered, be made available to CITY by CONSULTANT at CITY'S request and shall become the property of CITY. In the event CITY alters the document, CITY agrees CONSULTANT shall have no responsibility whatsoever for any claim arising out of, or alleged to have risen out of, use of the altered document.

Unless such property is proprietary in nature, all plans, studies, documents, charts, computations, and electronic files prepared by and for CONSULTANT, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the CITY upon payment to CONSULTANT for such work, and the CITY shall have the sole right to use such materials in its discretion without further compensation to CONSULTANT or to any other party. CONSULTANT shall, at CONSULTANT’S expense, provide such reports, plans, studies, documents and other writings to CITY upon written request.

AGENDA ITEM 1.

DATE: 5/7/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/7/2025
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Public Hearing on Vacancies to Comply with Assembly Bill 2561

SUMMARY OF ISSUE
In response to Assembly Bill 2561 (AB 2561), signed into law by Governor Newsom on September 22, 2024, the City of Scotts Valley presents this report in compliance with new transparency requirements related to staffing vacancies. AB 2561 mandates that public agencies hold at least one public hearing each fiscal year before the adoption of their budgets to report on vacancy levels, evaluate hiring and retention efforts, and allow for participation by recognized bargaining groups. This report includes workforce data for the 2024 calendar year, along with the most current staffing status as of March 31, 2025. The Public Hearing notice was posted in the Santa Cruz Sentinel on 4/28/2025.

Assembly Bill 2561 (AB 2561) amended the Meyers-Milias-Brown Act by adding Government Code Section 3502.3, which requires local public agencies to enhance transparency and accountability in public sector staffing. The purpose of AB 2561 is to address growing concerns over staffing shortages in public agencies, which can lead to increased workloads, employee burnout, lower morale, and reduced service delivery to citizens. To mitigate these impacts, the law requires agencies to:
• Report annually on vacancies, recruitment activity, and retention strategies; • Identify any policies or practices that may hinder hiring or retention; • Provide recognized bargaining groups an opportunity to present during the public hearing; and
• If any bargaining group vacancy rate reaches or exceeds 20% of authorized positions, provide additional data upon request, including applicant volume, hiring timelines, and efforts to improve compensation, benefits, and working conditions.

Recognized bargaining groups, including the Service Employees International Union 521 (SEIU), Mid-Management, Scotts Valley Police Bargaining Unit (SVPBU), Scotts Valley Police Supervisors Associate (SVPSA) have been invited to participate in this public hearing in accordance with AB 2561.

Workforce Overview

As of March 31, 2025, the City of Scotts Valley has 67 (FTE) budgeted positions. Of the 67 FTE’s, 56 are represented by bargaining groups. No bargaining group currently meets or exceeds the 20% vacancy threshold that would trigger enhanced reporting under AB 2561.

The City’s overall vacancy rate is currently 4%, which is considered low.

Vacancy rates are calculated as follows: Vacancy Rate (%) = (Number of Vacant Positions in employee group / Total Number of Authorized Positions) x 100.

The following table summarizes the City’s vacancy rate by employee group as of March 31, 2025:

Employee Group FTE’S
Budgeted
Vacancies Vacancy
Rate
SEIU 19 2 11%
Mid-Management 11 1 9%
SVPBU 21 0 0%
SVPSA 5 0 0%
Management/Confidential 11 0 0%
Vacancies within the City arise from a range of factors, including retirements, internal promotions, resignations, and terminations. In 2024, the City filled 12 full-time positions.

Human Resources and Hiring Managers reviewed 373 applications for full-time positions, demonstrating consistent interest in City employment opportunities.

However, a high volume of applications does not always indicate a strong pool of qualified candidates. The City often receives applications from across the country and internationally, many of which are from individuals seeking remote-only roles or from candidates who do not meet minimum qualifications. Additionally, some qualified candidates choose not to proceed in the recruitment process due to the area's high cost of living or compensation levels that do not align with their expectations or desired lifestyle.

Employee Separations
In 2024, 9 employees separated from the City of Scotts Valley.

Employee Retention
Employee retention remains a central focus of the City’s workforce strategy. In 2024, the City implemented several initiatives designed to improve employee satisfaction, promote longevity, and enhance professional growth. These efforts include:
• Approval of new three-year labor agreements effective July 1, 2024, incorporating competitive wage increases and expanded benefits;
• Continued access to a comprehensive benefits package and flexible work schedule options for many positions;
• Creation of longevity incentives to reward and retain experienced employees; • Ongoing professional development through in-person and online training programs,

including offerings from the LCW Training Consortium and KnowledgeWave Training portal.
• Conducting an employee engagement survey.

The average tenure for employees is currently 5.5 years.

Organizational Self-Assessment
As part of its workforce planning and in alignment with AB 2561, the City continues to assess internal practices and workforce conditions to identify and address recruitment and retention challenges. Current areas of focus include:
• Exploring new advertising methods and platforms, particularly for hard-to-fill positions such as Police Officers;
• Reviewing recruitment best practices and improving the onboarding experience.

This ongoing self-assessment helps the City to become an employer of choice, supports organizational resilience, and ensures the effective delivery of public services.

FISCAL IMPACT
There is no fiscal impact to receiving and filing this report.

STAFF RECOMMENDATION
No action is needed to receive this report.

TABLE OF CONTENTS
None

AGENDA ITEM 1.

DATE: 5/7/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/7/2025
TO: Honorable Mayor and City Council
FROM: Mali LaGoe, City Manager
APPROVED: Mali LaGoe, City Manager
SUBJECT: Consider request to display the Pride flag to commemorate Pride Month from June 1st to June 30th, 2025

SUMMARY OF ISSUE
On June 1, 2022 the City Council adopted a Policy on Display of Flags to allow the display of government and commemorative flags. The policy prohibits third-party requests for commemorative flag displays and only allows for the display of commemorative flags when the request is brought forth by a member of the City Council to place the consideration of a specific commemorative flag on a future agenda. The decision to display the commemorative flag must then be authorized by a majority vote of the City Council at a duly noticed regular or special City Council meeting, as an expression of the City Council’s official sentiments. At the April 16, 2025 City Council meeting, Mayor Timm requested staff to place the consideration of flying the Pride flag during the month of June 2025, commonly known as Pride Month, on an upcoming City Council agenda.

Per the City’s Policy, any commemorative flag being considered must be consistent with the current City Council recognized goals and priorities and City strategic plan. The Pride flag, in representing the diversity of the LGBTQ community, is consistent with Council’s Strategic Goal #10: Celebrate Scotts Valley by supporting cultural events, developing Scotts Valley's brand, and investing in brand recognition.

The City Council unanimously voted to fly the Pride flag in 2022, 2023, and 2024 during Pride Month.

FISCAL IMPACT
As the City already owns a Pride flag, there is no fiscal impact of approving flying the flag for the month of June 2025.

STAFF RECOMMENDATION
It is recommended that the Council consider approval to display the Pride flag from June 1st to June 30th, 2025 to commemorate Pride Month.

TABLE OF CONTENTS

1. Resolution No. 2014 Flag Policy 06-01-2022

RESOLUTION NO. 2014

ADOPTING A CITY OF SCOTTS VALLEY POLICY ON DISPLAY OF FLAGS WHEREAS, the City of Scotts Valley currently displays, as required by existing law, the United States Flag and the State of California Flag; and WHEREAS, the City of Scotts Valley does not have a formal policy regarding the display offlags; and
WHEREAS, the City Council desires to establish a policy that provides guidance and standards for the indoor and outdoor display of flags at City of Scotts Valley owned properties; and
WHEREAS, in adopting this Policy on Display of Flags, the City Council declares that flags and flagpoles owned or maintained by the City of Scotts Valley are not intended to serve as a forum for free expression by the public, but rather as a nonpublic forum for the display of flags outlined in the Policy on Display of Flags, as an expression of the City Council's official sentiments (government speech).

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Scotts Valley approves the Policy on Display of Flags, attached and incorporated hereto as Exhibit A.

The above and foregoing resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a regular meeting held on the 1st day of June, 2022, by the following vote:

AYES: DILLES, JOHNSON, LIND, REED, TIMM
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Approved:

Donna Lind, Mayor
Attest:

Cathie Simonovich, City Clerk
DocuSign Envelope ID: 523A69F7-49AD-4756-8D11-27687EBC0142

5/26/22

CITY OF SCOTTS VALLEY POLICY ON DISPLAY OF
FLAGS
The Scotts Valley City Council (hereinafter “City Council”) desires to establish a “Policy on Display of Flags at City Facilities” (hereinafter “Policy”). In adopting this Policy, the City Council declares that the City of Scott Valley’s flagpoles are not intended to serve as a forum for free expression of the public, but rather for the display of Federal, State, and City of Scotts Valley flags, and any “commemorative flag” as may be authorized by this Policy and the City Council as an expression of the City Council’s official sentiments.

I. Purpose
A. The purpose of this Policy is to establish clear guidance from the City Council regarding the indoor and outdoor display of flags at City of Scotts Valley (hereinafter“City”) facilities.

B. In adopting this Policy, the City Council declares that flagpoles owned or maintained by the City are not intended to serve as a forum for free expression by the public. Rather, such flagpoles are a non-public forum for the display of Federal, State, and City of Scotts Valley flags, and any commemorative flag (as defined by section II(C)(1) below), as authorized by the City Council and this Policy as an expression of the City Council's official sentiments (government speech).

C. The City will not display a commemorative flag based on a request from a third party, nor will the City use its flagpoles to sponsor the expression of a third party.

II. Policy
A. Conformance with Federal and State Regulations. Flags shall be displayed in accordance with all Federal and State statutes and regulations, including, but not limited to, United States Code, Title 4, Chapter 1, et seq., and California Government Code sections 430 et seq., as may be amended from time to time, and this Policy.

B. For all City owned properties (including parks), other than the Civic Center, located at One Civic Center Drive, Scotts Valley. If there is an outside flagpole, the United States Flag may be displayed and the State of California Flag may be displayed, as described in section II(A) above. If flags are displayed indoors, those flags are limited to the United States Flag and State of California Flag. Commemorative flags may not be displayed.

If such City owned property is leased and/or licensed to a third party, that third party shall not be bound by this Policy, but must comply with any Federal, State, or local laws related to display of flags.

EXHIBIT A
DocuSign Envelope ID: 523A69F7-49AD-4756-8D11-27687EBC0142

5/26/22
C. Civic Center, located at One Civic Center Drive, Scotts Valley. Regarding the flagpole outside of City Hall, the United States Flag shall be displayed and the State of California Flag shall be displayed, as described in section II(A) above, as well as a “commemorative flag” (as defined by section II(C)(1)). If flags are displayed indoors of the Civic Center, thoseflags are limited to the United States Flag and State of California Flag.

1. Commemorative Flag
a. As expression of the City’s official government speech, the City Council may authorize the display of a “commemorative flag” to be displayed below any other flags on the Civic Center flagpole, located at City Hall. Only commemorative flags that comply with this Policy may be displayed. b. A commemorative flag is any flag that is consistent with this Policy and not the United States Flag or State of California Flag.
c. The City Council shall only consider a request to display such a commemorative flag if the request is made by a member of the City Council to place the discussion on theagenda for a regular or special City Council meeting. Requests to display a commemorative flag by members of the public will not be considered.
d. A majority of the City Council must agree to display the commemorative flag as part of an official City Council action at a duly noticed, Ralph M. Brown Act compliant, regular or special City Council meeting. e. Commemorative flags shall be displayed for a period of time that is reasonable or customary for the subject that is to be commemorated, but no longer than thirty-one (31) continuous days.
f. If any other flag is displayed at half-staff, the commemorative flag will also be displayed at half-staff, height limits permitting.
g. A commemorative flag will only be considered by the City Council if it is commonly identified with, and consistent with, the current City Council recognized goals and priorities and City strategic plan. The following are not allowed as commemorative flags and will not be considered by the City Council:
i. Flags of a particular religious movement or creed, to avoid the DocuSign Envelope ID: 523A69F7-49AD-4756-8D11-27687EBC0142

5/26/22
appearance of City government endorsing religion or a particular religious movement or creed;
ii. Flags of a political party, to avoid the appearance of City government endorsing a political party; and
iii. Flags advocating a certain outcome in an election. h. Any approved commemorative flag will be obtained by the City.

III. Procedures
A. Consistent with section II(A), no other flag shall be placed above the United States Flag and no other flag shall be larger than the United States Flag.

B. Flags should be hoisted briskly and lowered ceremoniously. The United States Flag should be hoisted first and lowered last.

C. Flags shall be displayed during operating hours on all days on which the City is open for business, and on national and state holidays. Flags may be displayed twenty-four (24) hours a day as long as they are illuminated during darkness.

D. Flags shall not be displayed during inclement weather, unless all- weather flags are used and are illuminated during darkness.

E. When flags are displayed on a single pole, the order from top to bottom shall be:
the United States Flag, the California State Flag, and if displayed and allowed by this Policy, the commemorative flag.

DocuSign Envelope ID: 523A69F7-49AD-4756-8D11-27687EBC0142

AGENDA ITEM 2.

DATE: 5/7/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/7/2025
TO: Honorable Mayor and City Council
FROM: Stephen Walpole, Chief of Police
APPROVED: Mali LaGoe, City Manager
SUBJECT: Scotts Valley Police Annual Activity Report

SUMMARY OF ISSUE
Presentation of the 2024 Scotts Valley Police Department Annual Activity Report

FISCAL IMPACT
None

STAFF RECOMMENDATION
It is recommended that the City Council receive information on the 2024 Scotts Valley Police Department Annual Activity Report.

TABLE OF CONTENTS

1. Year End Report 2024 Digital version

SCOTTS VALLEY POLICE DEPARTMENT
ANNUAL ACTIVITY REPORT - 2024

TABLE OF CONTENTS
INTRODUCTION............................................................................................................. 1 CRIME STATISTICS....................................................................................................... 2 ORGANIZATION CHART............................................................................................... 4 POLICE ADMINISTRATION........................................................................................... 5 OPERATIONS DIVISION................................................................................................ 6 Training Unit ..........................................................................................................................8 Field Training Program .........................................................................................................9 Traffic Unit ...........................................................................................................................10 Reserve Officer Unit............................................................................................................12 ADMINISTRATIVE SERVICES DIVISION.....................................................................14 Investigations Unit ..............................................................................................................15 DARE, JPA, National Night Out ..........................................................................................16 Communications/Records Unit ..........................................................................................19 Volunteer Unit......................................................................................................................21 Police Officer Association...........................................................................................23 Department Highlights.................................................................................................25 Staff Recognition..................................................................................................................30 2024 Police Employee of the Year ..............................................................................34

Scotts Valley Police Chief Steve Walpole
Annual Inspection 2024

1 SCOTTS VALLEY POLICE DEPARTMENT
ONE CIVIC CENTER DRIVE • SCOTTS VALLEY, CALIFORNIA 95066 • PHONE (831) 440-5670

CHIEF OF POLICE

STEVE WALPOLE
May 7, 2025
Honorable Mayor and City Council
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
RE: 2024 Scotts Valley Police Department Activity Report Dear Mayor and City Council Members:

I am pleased to present the 2024 Scotts Valley Police Department Activity Report. This report documents our efforts to continue our tradition of being the safest place to live in Santa Cruz County.

Last year officers responded to 5,342 calls for service from our residents. When those calls were for emergency situations, our officers were on average at the scene in two minutes and twenty seconds after we received the initial call for help. When our officers were not responding to calls for service, they remained vigilant and had 14,875 self-initiated activities to help prevent crime before it occurred.

This past year’s main highlight was in the recruitment and retention of our personnel. By taking a strategic approach to hiring officers over the past several years, we finished the year fully staffed in both officers and dispatchers. It was a great accomplishment considering the critical staffing shortages that many of our other local law enforcement partners faced this past year. That feat could not have occurred without the hard work from the members of the department who were responsible for the recruitment, hiring, and training of new personnel. We hope these new hires stay with the department for the long term and become the foundation of the department’s future leadership.

The other highlight of 2024 came at the end of the year when our city was struck by a tornado. It was the first time in recorded history that such a weather event occurred in Scotts Valley. I am proud to say the police department and public works department’s response to the aftermath of the storm was admirable. By working together with our partners from other agencies, we were able to minimize the impact of the storm and get the city fully back up and running in just a few short days.

In closing, I would like to once again thank my staff for their dedicated service as well as the supportive community that we are privileged to serve and protect.

Sincerely,
Steve Walpole
Chief of Police

SCOTTS VALLEY CRIME STATISTICS
YEAR TO YEAR COMPARISON 2020 TO 2024
2 DESCRIPTION 2020 2021 2022 2023 2024 % OF
CHANGE
FROM 2023-
2024
PART 1 CRIMES
HOMICIDE 0 0 0 0 0 0%
RAPE 7 6 3 3 3 0%
ROBBERY 7 2 3 0 4 400%
ASSAULT 48 57 58 61 82 34%
BURGLARY 60 37 34 21 10 -52%
LARCENY 104 106 128 124 177 43%
AUTO THEFT 21 11 11 8 5 -38%
ARSON 1 2 0 1 2 100%
TOTAL PART 1 CRIMES 248 221 237 221 294 33%
ALL OTHER CRIMES 407 503 428 359 251 -30%

TOTAL CALLS FOR

SERVICE
6,439 6,033 5,655 5,718 5,342 -7%

TOTAL OFFICER

INITIATED ACTIVITY
12,192 12,965 16,745 16,637 14,875 -11%
TOTAL CITATIONS 579 958 1,021 1,449 1,397 -4%
NUMBER OF ARRESTS 374 425 570 525 508 -3%
INJURY ACCIDENT 6 19 15 17 13 -24%
NON INJURY ACCIDENT 107 137 122 125 142 14%
FATALITY 1 0 0 1 0 -100%
HIT & RUN 22 21 20 17 17 0%
TOTAL ACCIDENTS 114* 156* 137* 145* 155* 7%
DOMESTIC VIOLENCE 19 22 23 19 24 26%
VANDALISM/GRAFFITI 53 67 55 68 51 -25%
DRUG VIOLATIONS 90 79 89 81 55 -32%
* Does not include Hit & Run collisions
These numbers are subject to change as persons report prior crimes after the fact.

3 SCOTTS VALLEY POLICE DEPARTMENT
DATA DEMOGRAPHICS 2024
Total Black White Hispanic Asian Other Male Female
Arrests 141 12 (8%) 70 (50%) 56 (40%) 3 (2%) 0 104 37
Notice to Appear 297 3 (1%) 190 (64%) 79 (27%) 10 (3%) 15 (5%) 195 102 Written Notice to
Correct Violation
273 11 (4%) 190 (70%) 54 (20%) 12 (4%) 6 (2%) 194 79
Verbal Warning 1530 57 (4%) 980 (64%) 387 (25%) 70 (5%) 36 (2%) 1047 483 Public/Motorist
Service
30 0 17 (57%) 10 (33%) 1 (3%) 2 (6%) 23 7
Total: 2271 83 (4%) 1447 (64%) 586 (26%) 96 (4%) 59 (2%) 1563 708 City Population
(2020 Census)
11,863 71 (1%) 9,251 (78%) 1,253 (11%) 854 (7%) 434 (3%) 5,880 5,983 County Population
(2020 Census)
273,123 2,230
(1%)
154,075
(56%)
92,921
(34%)
13,699
(5%)
10,198
(4%)
135,168 137,955
What Are Data Demographics?
Data demographics are compiled by the Scotts Valley Police Department during the course of a routine traffic stop. Upon the conclusion of the stop, information obtained from the Officer as well as the Driver’s License is saved and used to track characteristics such as age, race, and gender. This information has been collected for many years for internal use, however this year we have included it for public review as some questions arose regarding who we were stopping. We will continue to provide this type of information in subsequent Annual Reports for greater transparency to the public. .

4 SCOTTS VALLEY POLICE DEPARTMENT
Chief of Police
Captain
Investigations
Unit
Detective
Sergeant
Detective
(3)
School Resource
Officer
Communications
Services
Supervisor
EDC II
(2)
EDC I
(4)
Captain
Operations
Division
Patrol Unit
Sergeant
Team 1
Patrol Officer
(2)
Sergeant
Team 2
Patrol Officer
(2)
Sergeant
Team 3
Patrol Officer
(2)
Sergeant
Team 4
Patrol Officer
(2)
Administrative
Secretary/Analyst

5 POLICE ADMINISTRATION
The Scotts Valley Police Department Administration is responsible for the overall leadership, vision, and management of the police department. Police Administration manages the Department’s $7 million budget, as well as grant funds, equipment acquisitions, and overall training needs.

Police Administration directs the hiring of new personnel, ensures that professional standards are met, and monitors compliance with all state and federal regulatory requirements. Police administrators participate in numerous city/county events, boards, and meetings. They also collaborate closely with elected officials, the city manager, local schools, and community groups to ensure a positive and open line of communication.

Captain Jayson Rutherford / Chief Steve Walpole / Analyst Cerina Locke / Captain Scott Garner

6 OPERATIONS DIVISION
In the rapidly evolving landscape of modern law enforcement, the role of the police sergeant remains a cornerstone of effective policing. As the first line of leadership for officers on the street, the sergeant holds a crucial position in bridging the gap between command staff and the officers who engage directly with the public. Today, the sergeant role has become even more complex and significant due to technological advancements, increased scrutiny of law enforcement practices, and the changing needs of communities.

The police sergeant is not just a supervisor but a vital figure who ensures the efficiency, safety, accountability, and overall success of police operations.

Sergeants must possess strong leadership skills, emotional intelligence, and the ability to make quick, well-informed decisions. They are responsible for managing resources, directing complex calls for service, and ensuring that their team is well-prepared and focused on their tasks. Additionally, Sergeants play a central role in fostering positive relationships with the communities they serve. They ensure that officers engage with the public in a respectful and professional manner and provide our community with a high level of service.

The Operations Division includes the Patrol Unit, Training Unit, K9 Unit, Traffic Unit, and the Reserve Unit. The Patrol Unit is comprised of officers who operate marked police vehicles and handle the bulk of the day-to-day calls for service. In any given moment, officers perform an array of duties from responding to emergency calls for service involving vehicle accidents to talking to our youth about drugs and alcohol prevention.

Captain Jayson Rutherford oversees the day-to-day operations of the police department.

This position requires the management of four patrol sergeants and eight patrol officers.

Our patrol staff work twelve-hour shifts on a three or four-day rotation. These shifts are normally covered by one patrol sergeant and two patrol officers, with our daily minimum staffing for any particular shift being two officers.

Patrol Supervisors:

Sergeant Meredith Roberts
Sergeant Meredith Roberts has served the department
since 2016. As part of a one-year investigations
rotation, Sergeant Roberts was assigned to
Investigations as the Detective Sergeant in January
2024. She oversaw two Detectives and the School
Resource Officer. In July 2024, she returned as a
Patrol Sergeant, where she managed a patrol shift,
oversaw our Reserve Officer Program, Bicycle Team,
and was one of our Peer Support team members.

7 Sergeant Pascale Drozek
Sergeant Pascale Drozek has served the department
since 2018. During the first half of 2024, Sergeant
Drozek was a Patrol Sergeant and managed the
Explorer program. In July 2024, she was reassigned
to Investigations as the Detective Sergeant.

Additionally, Sergeant Drozek continued to serve as a
Use of Force Instructor in both firearms and defensive
tactics. She currently oversees our Peer Support team
and has made great progress with the department’s
Wellness Program.

Sergeant Chris Galli
Sergeant Chris Galli has served the department since
2022. Sergeant Galli is currently assigned as a Patrol
Sergeant and oversees our department armory, which
includes weapons maintenance and ammunition and
equipment inventory. He also serves as a department
firearms instructor.

Sergeant Jesse Pidcock
Sergeant Pidcock has served the department since
2022. Sergeant Pidcock is currently assigned as a
Patrol Sergeant. He also has the critical collateral
assignment of Field Training Sergeant. In 2024, the
FTO Program had four new officers successfully
complete the program, providing much needed patrol
staffing.

Sergeant Sjon Tol
Sergeant Tol has served the department since 2023.

Sergeant Tol is currently assigned as a Patrol
Sergeant. He also has the collateral assignment of
Traffic Sergeant, which includes traffic enforcement
operations, motorcycle maintenance, vehicle
abatements, and more. Sergeant Tol was responsible
for obtaining two grants from the Office of Traffic Safety (OTS). These grants will provide updated equipment,
targeted DUI enforcement and DUI checkpoints, as
well as targeted E-Bike enforcement.

8 TRAINING UNIT
The training unit is supervised by Captain Jayson
Rutherford who oversees the Department’s inhouse training for all full-time officers, reserve officers, and police dispatchers. He is responsible
for ensuring that the department’s training
conforms to State and Federal guidelines. The
State of California Peace Officer Standards and
Training (POST) mandates that officers receive
training in the following categories every two
years: firearms, arrest control techniques, vehicle
operations and pursuit driving, tactical
communications, CPR/First Aid, and Active Shooter. Our department exceeds the State’s minimum standards by training several times each year in each category, a standard we have set for ourselves and believe our citizens demand of us.

In addition to State mandated training, officers
must conduct monthly roll-call training. Training
topics include: Sexual Harassment, Dispatch
Center Operation, Use of Force and Pursuit
Policy Review, Blood Borne Pathogens, Deescalation Strategies, and Bias and Racial Profiling. Officers complete monthly tests on
department policies and procedures through
Lexipol Daily Training Bulletins.

Officers are often sent off-site to receive
more specialized training. These courses
are taught by approved content experts on
topics such as sexual assault, robbery,
burglary, accidents, evidence collection,
interviewing, impaired driving, leadership,
emerging trends, and many other
contemporary subjects. Modern municipal
police work requires unique individuals who
can blend law enforcement with social work.

Our officers must be able to deal with an array of people in various situations. One moment, officers may have to show empathy to someone who is a victim of a crime, and the next moment, an officer might be dealing with a suicidal subject or someone who is under the influence of drugs or alcohol. Officers are often thrust into the complex web of societal issues surrounding race, class, and poverty. For these reasons and more, training is vital to this department’s professional development.

9 FIELD TRAINING PROGRAM
Sergeant Pidcock supervised the Field Training Program in 2024. The Field Training Program is where we take the
knowledge of the Police Academy and blend it into the culture of our department and city. This 16-week immersive program is the beginning of every police officer’s career. It serves the critically important purpose of guiding and shaping the police academy recruit into a competent, knowledgeable, safe and effective solo patrol officer. The Field Training Officer (FTO) serves many roles, including that of teacher, role model, and leader. The FTO must not only be extremely well versed in all the department’s policies, procedures, mission and values, but also be able to quickly understand each recruit’s individual learning style and be able to find the most effective way of imparting this knowledge to each recruit.

This past year proved to be impactful for the future of the department as four new Officers successfully completed the Field Training Program. The Scotts Valley Police Department welcomed Officer Michael Banke, Officer Kevin King, Officer Ivan Garcia, and Officer Derek Welsh to the team. They were excellent additions to our agency who understand the importance of community policing to our residents and who add to our positive culture.

We currently have one trainee, Officer Larson Graff, progressing through the field training program, while another trainee is attending the police academy with an expected graduation in July 2025. We look forward to reaching full staffing levels to continue to provide the highest quality service to our community.
(Left to Right) Officer Banke, Officer King, Officer Garcia, and Officer Welsh

10 TRAFFIC UNIT
As part of the Scotts Valley Police Department’s
Operations Division, the Traffic Unit’s mission is
to reduce vehicular accidents and to facilitate
the safe and expeditious flow of vehicular and
pedestrian traffic by encouraging the public’s
voluntary compliance with traffic regulations.

Our officers stopped a total of 2,518 vehicles in
2024. As a result, a combination of 1,397
citations were issued and multiple arrests were
made for various violations such as driving on a
suspended license, narcotics possession, and
driving under the influence (DUI). This
combination of enforcement and education
reminds drivers to follow the rules of the road
and keep safe during their travels.

SVPD HOSTED DUI CHECKPOINT
For the first time in over a decade, SVPD conducted a DUI checkpoint. This was a collaborative checkpoint with Officers from CHP, Santa Cruz PD, Capitola PD and State Parks participating. As a result of this checkpoint, over six hundred drivers were contacted resulting in four DUI arrests. With the success of this checkpoint, there will be another one conducted in the summer of 2025.

11 SCHOOL ZONE ENFORCEMENT
In 2024 SVPD focused on school zone
enforcement during the morning and
afternoon drop-off times at schools in the city.

Enforcement was directed at violations such
as red-light violations, speeding, distracted
driving, and bicyclist education. This
enforcement had a direct impact on driving
habits in these areas. The department also
participated in the Walk, Bike and Roll and
Operation Safe Passage events that occurred
during the school year.

OTS GRANTS
In 2024, SVPD was awarded two California
Office of Traffic Safety grants. One is a
“Selective Traffic Enforcement Program”
grant which funds selective enforcement for
things such as DUI drivers, distracted
drivers, and traffic safety education for the
public. The other is a “Traffic Records
Improvement Project” grant which provides
funding to update our records management
system, provide better traffic collision data
reporting, and move to a digital citation
system. This data will allow for more
accurate data collection so we can effectively
target our enforcement in areas that see the
greatest violations and collisions.

MOTOR OFFICER STANDEN
Motor Officer Standen has dedicated his time to
conducting enforcement primarily for speeding
vehicles and other moving violations. He monitors
roadways and intersections that have the highest
numbers of collisions or traffic complaints to keep our community safe.

12 RESERVE OFFICER UNIT
The Scotts Valley Police Department is
fortunate to be the only local police
agency that has a committed and
active Reserve Officer Unit. The Scotts
Valley Reserve Officer Unit is
comprised of members of our
community who choose to dedicate a
portion of their free time to invaluable
community service by working as
volunteer police officers.

The Scotts Valley Police Department currently has
four active Reserve Officers consisting of John
Hohmann, Don Murray, David Bergman, and Kevin
Elliott. Between our combined four Reserve
Officers, there is well over 125 years of law
enforcement experience.

Our Reserve Officers volunteered 630 hours in
2024. They assisted both the Patrol Division and
the Investigation Division throughout the year.

Some of their duties included:
• Supporting day-to-day investigations.
• Traffic control during special community events.
• Assisting with vehicle abatements.
• Conducting extra foot patrols of shopping
centers during the summer and holidays.
• Conducting surveillance stakeouts for reported
burglaries and wanted subjects.
• Providing security at various school related events such as Operation Safe Passage, Homecoming, Graduation Day, Bike to School Day, Grad Night, and sporting events. • Patrol supplementation on holidays and other special public relations events. • Taking on special projects such as organizing and cleaning the Police Armory and conducting inventory on Armory equipment.
• Representing the Scotts Valley Police Department at many Special Olympics Northern California events, such as Polar Plunge, the Olympic Games, and Police in Pursuit.

13 It's important to acknowledge our Reserve
Officers’ dedication, especially since they
balance their full-time careers with their
commitment to law enforcement and our
community. Their efforts indeed amplify
the safety and effectiveness of the
department, and their voluntary
contributions are invaluable to the
community of Scotts Valley. Recognizing
their sacrifices and professionalism helps
highlight the significance of their role in
maintaining public safety.

In August, Reserve Officer John Hohmann was
recognized at ARPOC (Annual Reserve Police Officer
Convention) for his dedication to this community and
was awarded with a Distinguished Service Award.

Reserve Officer Hohmann has dedicated countless
hours to this department and community and we are
honored to be able to work with him.

Reserve Officer Kevin Elliott was awarded the
Feature Winner at Police in Pursuit, a first responder
racing fundraising event where the proceeds support
Special Olympics Northern California.

It is important to highlight the dedication of our
Reserve Officers in both their professional
responsibilities and their community outreach efforts.

Special Olympics Northern California is an incredible
program, and their commitment to supporting this
cause speaks volumes about their dedication to
making a positive impact. Their work undoubtedly
makes a difference in the lives of many people and
showcases the compassionate side of law
enforcement.

14 ADMINISTRATIVE SERVICES DIVISION
Captain Scott Garner leads the Administrative
Services Division, overseeing both Investigations
and Communications. Within this division,
Detective Sergeant Pascale Drozek joined the
Investigations Team in July 2024 and quickly
made a significant impact. In addition to managing
investigative cases, Sgt. Drozek has taken a
proactive role in officer wellness, modernizing
department resources to better support the mental
and physical health of officers. Her efforts have
brought the department into the 21st century,
ensuring personnel are well-equipped to provide
the highest level of service to the community.

The Investigations Unit is composed of a detective sergeant, two detectives, and a school resource officer. While primarily working weekdays, detectives remain on call to assist patrol with major cases as needed. With specialized training in handling complex investigations, they are responsible for following up on cases until resolution. Beyond their investigative duties, the unit is actively engaged in community outreach, participating in key programs such as the Junior Police Academy, National Night Out, and the D.A.R.E.

Program, reinforcing the department’s commitment to fostering strong relationships with the public.

The Scotts Valley Police Department remains
the only municipality in our county with its own
dedicated 911 dispatch center. Our police
dispatchers continue to play a vital role in
public safety, handling emergency and nonemergency calls for service, dispatching patrol officers, managing records, filing police reports
and citations, generating media bulletins,
assisting with property and evidence, and
providing in-person support to community
members who visit our lobby 24/7/365.

Our dispatchers are not only dedicated to ensuring the
safety of our community from behind the radio but are also actively involved in community engagement. Many
voluntarily participate in events such as the Junior Police Academy (JPA), National Night Out, the Special Olympics Torch Run, and the Special Olympics Polar Plunge. They
take pride in building relationships with residents, whether by handing out candy during the annual Halloween
scavenger hunt or supporting local initiatives that bring our community together.

15 INVESTIGATIONS UNIT
The Scotts Valley Police Department’s Investigations Unit is a multifaceted unit responsible for criminal investigations and follow up, personnel recruitment and hiring, and community outreach events.

CRIMINAL INVESTIGATIONS
Our Detectives are primarily dedicated to Criminal
Investigations, diligently probing into criminal activities, following up on active leads, tirelessly working towards solving cases, and ultimately, ensuring that justice is served. This includes collecting evidence, interviewing victims and witnesses, obtaining search and arrest
warrants, and closely collaborating with other law
enforcement agencies to help solve cases.

Detective Sergeant Pascale Drozek supervises the
Investigations unit which consists of three Detectives, an Officer assigned to our County Gang Task Force,
and an Investigations Analyst.

RECRUITMENT
The Recruitment Unit plays a pivotal role in
personnel recruitment. This responsibility
involves performing thorough background
checks, as well as conducting extensive
interviews and assessments to ensure each
potential candidate meets the highest
standards that a career in law enforcement
requires. This process starts with actively
attending recruitment fairs and visiting local
Police and Dispatch Academies.

COMMUNITY OUTREACH
The Investigations Unit is committed to fostering positive relations between the police department and our
community through continuous active participation in
community outreach initiatives. By engaging with the
community, organizing events, and quickly addressing
public concerns, we collectively aim to build trust, enhance public safety, and promote a sense of partnership between law enforcement and the community we serve.

16 DRUG ABUSE RESISTANCE EDUCATION (D.A.R.E.)
The Drug Abuse Resistance Education
(D.A.R.E.) program is taught to all 5th
grade students at Vine Hill Elementary,
Brook Knoll Elementary, and Baymonte
Christian School.

As an alumni of Baymonte Christian School and a former
D.A.R.E. student himself, School Resource Officer Patrick Ahrens has taught DARE the past four years. This year he was assisted by Sergeant Roberts, who has taught D.A.R.E. in the past. The two did an excellent job of blending teaching styles to continue the success of the program.

The D.A.R.E. program consists of an
evidence-based curriculum that teaches
students good decision-making skills to help
them lead safe and healthy lives. The
D.A.R.E. vision is defined as a “world in
which students everywhere are empowered
to respect others and choose to lead lives
free from violence, substance abuse, and
other dangerous behaviors.”
It's commendable that the Scotts Valley
Police Department has maintained such a
long-standing commitment to teaching
DARE for 31 consecutive years. Building
strong relationships with local schools is
key to making a positive impact on students'
lives. Congratulations to all involved!

17 JUNIOR POLICE ACADEMY (JPA)
The Junior Police Academy is a great way
for young students to learn about law
enforcement and build positive relationships
with officers. Providing two sessions during
the summer takes an all hands on deck
approach. School Resource Officer Patrick
Ahrens runs the academy with the help of
our Explorers, Dispatchers, Officers,
Sergeants and Volunteers. Programs like
our Junior Police Academy are the positive
interactions that create a lasting impact on
our community and help foster trust and
understanding between law enforcement
and our youth.

At JPA, middle school aged youth are
treated as police recruits and put through a
weeklong police style academy during
which they are taught what actual police
officer trainees go through during their
training. Recruits are trained on finger
printing, plaster casting, crime scene
sketches, and defensive tactics. In addition
to this, Recruits are put through daily
physical fitness drills and are shown K9,
SWAT, and firearms demos.

The Junior Police Academy not
only educates kids about the
role of a police officer but also
instills the value of volunteerism.

Programs like this can have a
profound impact on young
minds, encouraging them to
become active and positive
contributors to their community.

It's apparent that the Scotts
Valley Police Department is
dedicated to fostering a sense of
responsibility and civic
engagement among the youth.

18 NATIONAL NIGHT OUT
In August of 2024, the Scotts Valley Police Department hosted National Night Out at MacDorsa Park. National Night Out is a national community building campaign that promotes police and community relations. National Night Out builds on the relationship between neighbors and law enforcement by allowing citizens to interact with members of the police under positive circumstances, bringing back a true sense of community.

During National Night Out, community
members were provided tours of the Scotts
Valley Police Department and the Scotts
Valley Fire Department. Booths were set up
by many different local businesses and
county services who serve the public.

During the event members of the
department grilled hot dogs, handed out
watermelon, and popped popcorn for
everyone in attendance.

The event had the atmosphere of a county fair, with
endless attractions including a bounce house for kids, face painting, and a petting zoo. The Scotts Valley Police
Department values the strong bond we have with our
community and believes the tradition of hosting National Night Out further strengthens that bond.

19 COMMUNICATIONS / RECORDS UNIT
The Communications and Records Unit is made up of seven Emergency Dispatchers, EDCIs Anna-Kate Brajkovich, Taylor Hutchison, Taylor Raymond, and Rachel Wynne, EDCIIs Hannah Bridges and Kiara Jacobsen, Services Supervisor Chloe Graham, and Administration Captain Scott Garner. The personnel in this unit are often tasked with a myriad of assignments. The primary job of the Unit is dispatching which consists of taking 9-1-1 calls, answering business lines, transferring calls to the appropriate emergency and nonemergency services, relaying calls for service to officers, and documenting their services. Dispatchers also greet and help people who come to our lobby. With the trend of most law enforcement agencies to close their department doors at certain times of the day/week, we are proud to say that we continue to provide a 24/7 open lobby, allowing face to face personal contact with a member of our department.

The secondary job of the Unit is Records Management. Our EDCs not only dispatch but are also responsible for data entry of a wide range of reports and citations. Additionally, they coordinate large amounts of paperwork generated, making sure it gets distributed to the correct locations, filed in a systematic easily retrievable manner, and quality checked for accuracy. Part of records management is also responding to Public Records Act requests and Court Orders.

20 In 2024, our dispatch center received
3,576 calls on our 9-1-1 line and another
14,894 calls on our business lines, which
resulted in 5,342 calls for police service.

Our average response time to
emergency calls for service was two
minutes and forty-one seconds.

When comparing the number of 9-1-1
and business line calls taken by our
EDCs to the calls for service dispatched,
it highlights the importance of having
well qualified dispatchers. More than half
of our 911 and business line calls were answered and handled by a dispatcher (68%), allowing officers more time to respond to higher priority calls for service. Our dispatchers are highly trained and motivated to assist the officers and the department any way they can. Our dispatchers continue to attend trainings to further their knowledge and career growth.

This year our dispatchers participated in several events such as a county wide active shooter training, the Special Olympics Torch Run, National Night Out, the Junior Police Academy, and the Never Forget Relay.

Our dispatch team had multiple achievements throughout the year. EDCI Rachel Wynne was hired to our department and expected to pass training at the beginning of 2025. Our communications staff also received employee of the month awards on multiple occasions.

Services Supervisor Graham received the award in January, EDCI Miller received the award in March, and EDCI Brajkovich received the award in June. Multiple Chiefs accommodations were given out as well. EDCII
Jacobsen received a commendation for her
dispatching skills during an assault on our officers.

EDCII Bridges and EDCI Hutchison received a
commendation for their hard work during the
tornado that hit our city.

The Unit is also in the middle of various projects.

We have made multiple strides forward on
upgrading our old copper wire radio lines to fiber
optic, putting us one step closer to being P25
compliant and achieving encryption and
interoperability capabilities. We have also attended
multiple meetings and vendor presentations for the
NexGen 911 project in California. We intend to pick
a new CPE vendor in July of 2025 so that our
center can take I3 calls which are vastly more
accurate with their location information and
incredibly more reliable for service quality.

21 VOLUNTEER UNIT
The Scotts Valley Police
Department has a devoted group of
civilian volunteers that have
collectively served over 500 hours
this year. A program running since
1991, our department volunteers
assist our staff weekly with
numerous tasks throughout the
year.

Our department currently has eight volunteers:

Jim Kiehl, Terri Ritchie, and Berna Bruzzone,
who work in our Administrative and Records
Department, maintaining and purging reports
amongst helping with many other projects. Joe
Bac and Konrad Baumert collaborate with our
traffic unit to relocate our mobile speed sign.

Michael Cummings assists us in our Firearms
training and armory and John Galli assists with
Pitmaster duties and maintaining our classic car.

Fred Wilson volunteers as our Police Chaplain.

Their unwavering dedication and commitment to
enhancing the safety of Scotts Valley citizens
hold significant value for this department.

Our gratitude towards our volunteers knows no bounds for the dedication and effort they contribute to both this department and the City of Scotts Valley. Their positive outlook, diligence, and countless hours of service underscore their vital role within the Scotts Valley Police Department and the broader community of Scotts Valley.

22 POLICE CHAPLAIN
Chaplain Fred Wilson remains a steadfast source of support for both our community and our department. He tirelessly responds alongside our officers, offering emotional and spiritual guidance to those experiencing grief and crisis.

Beyond his work in the field, he regularly checks in with our staff, providing a compassionate presence and a listening ear. His unwavering dedication makes him an invaluable
resource for both the Scotts Valley Police Department and the entire community, especially in times of need.

POLICE EXPLORERS
The Scotts Valley Police Department is one of a few agencies that still provide an Explorer Program for teens and young adults interested in exploring law enforcement as a future vocation. The Explorer Program is an opportunity for juveniles, aged 14-20 years, to be involved with the police department by volunteering their time, while simultaneously gaining valuable job experience and mentoring by police personnel.

Our current Explorer Program consists of
Explorers Jacob Brazil and Kimberly
Corona. Jacob has been a volunteer for
three years and Kimberly joined us in
2024. Each year they are given the
opportunity to participate in ride-a-longs
with our officers, our Annual Inspection,
the Junior Police Academy (JPA), National
Night Out, and the Cops & Rodders event.

They are also utilized during special
events for traffic control, passing out
stickers, and at recruitment events.

SPECIAL RECOGNITION
We would like to extend our deepest gratitude to Jim
Kiehl for his years of dedicated volunteer service to the Scotts Valley Police Department. Jim has been a
treasured part of our SVPD family, generously giving his time and energy to support our department and
community. As he steps into retirement to spend more
time with his family and enjoy life to the fullest, we want to recognize his invaluable contributions and the lasting impact he has made. He will be truly missed, but his
legacy of service will always be remembered. Please
join us in congratulating Jim on his well-earned
retirement as a volunteer!

23 POLICE OFFICER ASSOCIATION
The Scotts Valley Police Officer Association (SVPOA) genuinely values the importance of connection with our community and is passionate about supporting local charities and youth programs. Led by President Sergeant Meredith Roberts and Vice President Vitani Harrison, who were elected in the latter half of 2024, the SVPOA wholeheartedly embraces our role in giving back. Our members are dedicated to making a positive impact, volunteering with organizations such as the Special Olympics and Valley Churches United, and helping to uplift those in need with compassion and care.

SPECIAL OLYMPICS
The Scotts Valley Police Department has
always held a deep commitment to supporting
the Special Olympics of Northern California,
recognizing the profound impact these events
have on our community. Reserve Officer John
Hohmann has been instrumental in organizing
heartfelt public relations events that raise funds
for this noble cause.

From the thrilling Police in Pursuit car races at Ocean Speedway to the chilly Polar Plunge and the inspiring
Law Enforcement Torch Run, these events bring our
community together. In July 2024, the "Flame of Hope"
torch made its journey through Scotts Valley. It was
heartwarming to see so many of our officers and
dispatchers from the Scotts Valley Police Department
come together as runners. Their enthusiastic support
embodies our shared compassion and inclusive
values, reminding us that we are all part of something
remarkable when we stand together.

24 During the vibrant summer months, members
of the Scotts Valley Police Officer Association
(SVPOA) actively participated in the dynamic
“Police In Pursuit” event at Watsonville
Speedway. This thrilling competition invites law
enforcement officers from various departments
to showcase their racing skills as they go headto-head on the racetrack to achieve the best lap times.

What makes this event particularly special is the officers' dedication, many of whom choose to race in retired police vehicles that they have personally purchased. This commitment not only highlights their enthusiasm for the event but also underscores their willingness to invest their own resources in support of a meaningful cause.

The Special Olympics funds raised from “Police In Pursuit” are directed towards essential programs that foster sports participation, health and wellness initiatives, and athletic educational and leadership development. By engaging in this exciting event, our officers enjoy a day of competition and contribute significantly to the empowerment and growth of these remarkable athletes.

VALLEY CHURCHES UNITED FUNDRAISER
In a heartfelt collaboration with the
Scotts Valley Rotary, the Scotts
Valley Exchange Club, Valley
Churches United, Kiwanis Club, and
various other dedicated community
sponsors, the SVPOA proudly
helped organize a magical holiday
tree lighting ceremony at the
Community Center.

In the days leading up to the event,
our officers eagerly embraced the
spirit of giving, working tirelessly to
collect monetary and toy donations for Valley Churches United right outside our local Target store. The warmth of the community was truly felt as they continued to gather toy donations at the event, handing out stickers and creating lasting memories with countless families. The turnout was remarkable, reflecting genuine camaraderie and support within our community. The SVPOA felt truly honored to be part of this celebration focused on family and togetherness, reinforcing the importance of our shared values during this special season. Later in the week, members of Valley Churches United joined us at our holiday luncheon.

25 DEPARTMENT HIGHLIGHTS
The Scotts Valley Police Department responded to 5,342 calls for service and selfinitiated another 14,875 events in 2024. Our calls for service ranged from in-progress crimes, domestic disputes, thefts and burglaries, traffic collisions, narcotic-related crimes, and other criminal investigations. Our department also responded to non-criminal calls for service involving suspicious vehicles and people, residential and commercial alarms, municipal code violations, and other quality-of-life issues. Additionally, our department had many positive interactions with our community members and students. Some of the more notable incidents are summarized below:

WINTER
The beginning of 2024 showed proactive policing that
resulted in the seizure of a drug manufacturing lab.

Through keen observation, officers were able to
determine that a subject had set up a clandestine drug
manufacturing lab in one of our local storage facilities.

Officers wrote a search warrant for the storage unit and seized over 800 grams of suspected amphetamines
along with household supplies that are commonly used
to manufacture illegal narcotics.

Officers responded to a report of
a multi-vehicle collision. Once on
scene, officers worked quickly
and established that the driver of
the involved vehicle had
experienced a fatal medical
emergency while driving through
the parking lot at the Skatepark.

This occurred during a busy
weekend and officers worked
expeditiously to secure the
parking lot and any possible
evidence, evacuate uninvolved people, ensure there were no other injuries, interview witnesses, and determine what had unfolded.

26 SPRING
Even during the late hours of the night, our
officers stayed proactive with commercial
checks of businesses. On one such night,
a keen-eyed officer located a subject acting
suspiciously in a shopping center alleyway.

The subject had concealed approximately
$960 worth of property on their person,
after stealing it from a local business.

Officers arrested this subject and
transported them to jail. But our officers
didn’t stop there. They also authored a
search warrant for the subject’s vehicle, as
stolen property appeared to be hidden in the back seat. In the end, over $4,500 worth of stolen property was recovered from the subject and their vehicle, and it was returned to the rightful owners.

Men and women get into law enforcement to
keep their communities safe. This is exactly
what these observant officers did in late spring
of 2024. One officer was conducting an area
check while driving through a residential
neighborhood. During this check, the officer
noticed a suspicious vehicle that had no
license plates affixed to it. The officer elected
to park inconspicuously and observe the
vehicle for several moments. Ultimately, two
subjects exited a nearby residence and
entered the vehicle. The officer contacted the
two subjects and determined they were both on
searchable probation. During a search of the
driver, the officer located narcotics and a
loaded privately manufactured unserialized
firearm. The subject was also found to be a
convicted felon which meant it was a crime to
be in possession of the firearm. The subject
was booked into jail on the drug and gun charges.

27 SUMMER
Officers were dispatched to a report of
a suspicious person who was acting
erratically in one of our residential
neighborhoods. Officers were able to
locate the suspicious person who was
inside of his vehicle. Officers parked
their patrol vehicles near the
suspicious male’s vehicle and
attempted to communicate with the
subject, who appeared to be asleep or
ignoring the officers. Soon after, the
subject attempted to leave the area,
striking both patrol vehicles in the
process. Officers pursued the subject and were able to successfully spike all four of the subject’s tires, ultimately forcing the subject to pull into a separate wooded residential area. The Santa Cruz Sheriffs Office and CHP arrived to assist with the subject who was now barricaded inside of his vehicle. Using a police K9, drones, patience and composure by the officers on scene, the subject ultimately surrendered and was taken into custody.

This case serves as a reminder of the comradery and teamwork between our allied agencies.

During the late summer months,
officers received information of an
adult male contacting juvenile females
in attempts to meet with them in
person. The dedicated members of the
Investigations Unit quickly took this
case over and began messaging the
male subject, pretending to be the
juvenile females he had been
communicating with. The male subject
relayed his intentions and even
insisted on paying the juvenile females
for their potential participation in
secretly meeting the male. The Investigations Unit wrote multiple search warrants, identified victims and other juveniles that had been contacted, conducted many interviews and successfully arrested the male suspect when he drove into Scotts Valley, thinking he was going to meet up with one of the female juvenile victims. This investigation took multiple months and seamless coordination between our Patrol and Investigations Units.

28 FALL
During the early fall months, a suspect
experienced a severe mental health
emergency. During this time, the suspect
attempted to set a fire at the facility he
was living at and stabbed a separate
member of the facility before running
away from the scene. Officers quickly
and bravely responded to the location
and began multi-tasking, triaging the
incident as it was unfolding. Officers were
attending to the injured subject while
other officers were out looking for the
suspect. It was all hands-on deck working to find this suspect before he injured anyone else. Chief Walpole and Captain Rutherford located the suspect and safely took him into custody. The suspect was arrested for his crimes and was also able to get the mental health services he needed.

Throughout 2024, Scotts Valley
Police Department has had the
opportunity to send one officer to
the countywide task force, Santa
Cruz County Anti Crime Task
Force (SCCACT). These officers
work with other agencies within
the county to focus their efforts
on preventing organized crime.

Although the work is shared with
other officers from the county,
these officers are able to prevent
many drugs and guns from
entering our community. During
the course of one investigation, officers were able to utilize information and located multiple illegally possessed firearms along with indicia of drug sales at a residence in Scotts Valley. During 2024, our SCCACT officer seized over 25 firearms, keeping our community safe.

29 SCOTTS VALLEY STRUCK BY TORNADO
The end of our calendar year coincided with
the highlight of our year, which was truly a
historic weather event. The City of Scotts
Valley experienced its first tornado which
came out of nowhere during a rainy Saturday
afternoon in December. The tornado touched
down on Mount Hermon Road, near
Lockewood Lane, and traveled eastbound on
Mount Hermon Road for multiple blocks
leaving a wake of destruction in its path.

The tornado flipped over many vehicles in nearby parking lots and those traveling down the roadways. Many power
poles and tress were knocked over around town.

Miraculously, there were no significant injuries from this event.

The members of the Scotts Valley Police Department
jumped into action. Many of our Officers, who were on their days off, saw the damage and self-deployed to help. They responded to the scene where they assisted in getting
people safely out of the area, and when the situation
stabilized, they conducted multiple hours of traffic control due to Mount Hermon Road being shut down.

We want to thank the Scotts Valley Fire
District, Scotts Valley Public Works, Santa
Cruz Fire, Cal Fire, and AMR for assisting us
that day. All the first responders worked
seamlessly to ensure the preservation of life
and minimize the destruction of property that
occurred in our city. In less than 48 hours after
the tornado touched down, the city was made
whole and life returned to normal for our
residents.

30 STAFF RECOGNITION
The outstanding investigations, arrests, dispatching, and community involvement does not go unnoticed. Here are the Employees of the Month for 2024. We are fortunate to have such dedicated police professionals.

JANUARY
Services Supervisor Chloe Graham
Services Supervisor Graham brought our department dispatch center up to industry standards by working with private vendors to ensure our operating systems were up to date. She introduced an extensive training program for dispatchers to ensure adherence to State Certifications and hosted a regional dispatch training course.

Supervisor Graham started the Santa Cruz County Records Manager group so local records managers could meet on a regular basis to discuss updates in records laws.

FEBRUARY
Officer Forrest Brown
Officer Brown led the department in both traffic stops and arrests for the month of February. In February he received information about guns and drugs in a storage locker here in Scotts Valley.

Coordinating with the K9 team, Officer Brown located a fully functional meth lab with numerous cooking items testing positive for methamphetamines. He also located several pounds of
amphetamines in various stages of production leading to the arrest of a local drug manufacturer.

MARCH
EDCI Taylor Miller
When a fatal traffic accident occurred near Skypark, EDCI Miller managed multiple 9-1-1 calls and all radio traffic to get our officers, fire department, and AMR started immediately to render aid.

Later in the month, EDCI Miller received a 9-1-1 call regarding someone who brandished a firearm at someone at a gas station in town. She collected pertinent information for a photo lineup, leading to the suspect being identified and a felony warrant requested for his arrest.

31 APRIL
Detective Aaron Roberts
In April, Detective Roberts received notice that a local high-risk sexual registrant had cut off his GPS ankle monitor and fled Santa Cruz County. Detective Roberts quickly started a cell phone track to determine the suspect’s location and contacted the respective agency, leading to the suspect being taken into custody that same day.

In another case, Detective Roberts identified a suspect in a brandishing case and worked with the Santa Cruz County Anti-Crime Team to execute an arrest/search warrant. During the search Detective Roberts recovered a replica firearm that was used during the crime, obtained a confession, and booked the suspect into jail.

MAY
Officer Nick Lipari
During the month of May, Officer Lipari responded to a subject with a violent history who had heard footsteps inside his residence. He was able to detain the subject for 5150 without any incident, preventing a possible violent interaction. Officer Lipari responded to another mentally distressed individual, a female juvenile who had threatened to harm herself while barricaded inside her room. Officer Lipari built rapport with the juvenile and de-escalated a highly agitated, irrational person to safely take her for treatment.

In another case, Officer Lipari set up a spike strip after a suspect rammed two patrol cars, an action that prevented a high-speed pursuit on a crowded roadway. Officer Lipari likely saved lives before the suspect was taken into custody with no officers from any agency being injured.

JUNE
EDCI Anna-Kate Brajkovich
In June, EDCI Brajkovich took on the role of master case closure, checking every single case for the required data and searching for any mistakes made during the distribution process. This is an important task which maintains the record’s accuracy. EDCI Brajkovich is also our most recent Communications Training Officer.

She does a great job planning for her trainees’ success, meeting with her team to go over the expectations, coordinating time for the trainees to focus on the training outline and testing preparation, and creating mock scenarios for her trainees to better prepare for being a solo dispatcher.

32 JULY
Sergeant Sjon Tol
Sergeant Tol’s research led to the selection of a new system in July that minimizes report writing errors, expedites field form completion, and enhances overall efficiency in citation issuance. Sergeant Tol also successfully secured two Office of Traffic Safety grants, the Crossroads report/citation software with necessary supporting equipment, and support of DUI saturation patrols and checkpoints, bicycle safety enforcement, and new radar/lidar units, and checkpoint supplies. Sgt. Tol additionally developed a
comprehensive plan focused on traffic collision reduction and highvisibility enforcement to enhance public safety.

AUGUST
Detective Kevin Elliott
When an adult male contacted a minor via Snap Chat and offered to pay her money to commit sexual acts, Detective Elliott interviewed the victim, conducted a pretext phone call with the suspect which got him to admit to the crimes, and ultimately got the suspect to show up in person to meet with the victim to complete the transaction but instead met with our officers who placed him into custody for human trafficking. Additional follow-up on this case led to three other victims of the suspect being identified. In another case in August, Detective Elliott received a Cyber Tip of a local resident who was downloading child porn, and he successfully executed a search warrant leading to the arrest of the suspect.

SEPTEMBER
Sergeant Jesse Pidcock
Sergeant Pidcock assumed the FTO Sergeant role and immediately began preparing for four trainees who were in two different academies. He met with past FTO Sergeants to familiarize himself with the program, reached out to the Academy staff at both academies to establish open lines of communication, and held FTO meetings prior to the trainees graduating to outline expectations, clarify the goals of the program, and ensure the FTO cadre was committed to the success of all four trainees. Sgt. Pidcock worked closely with all the FTOs during the entire training program and kept the Administration informed with status updates. His dedication to the success of the program and trainees was commendable as all four trainees successfully progressed through the program.

33 OCTOBER
Sergeant Pascale Drozek
In October, Sergeant Drozek became the department’s Wellness Coordinator through the POST Organizational Wellness and Resilience (POWR) Program, designing a program of monthly rollcall trainings on various wellness topics, a wellness resources section on the city intranet page, new gym equipment, and a nutritious food delivery program. While also focusing on recruitment and updating the department trading cards, Sergeant Drozek organized the annual sex registration check operation leading a team of detectives and officers to contact all the registered sex offenders in the City to ensure they were following the law. The operation resulted in finding two individuals in violation of the Sex Offender Registration Act Penal Code 290 regulations.

NOVEMBER
Officer Ben Standen
Officer Standen responded in November to a suicidal subject who was in possession of a loaded handgun. After contacting the subject by phone, Officer Standen recognized he needed mental health help and spoke to him in a calming, compassionate voice that led to the male placing the gun into a locked safe and coming outside with his hands up. The subject was handcuffed without any force being used and no one was injured in the process. As a Field Training Officer, Officer Standen showed leadership to our four newest trainees who were on scene for the suicidal call, giving them an up-close view on how to build trust and rapport, and de-escalate an extremely dangerous situation with safety measures that prevented harm to our community.

DECEMBER
Sergeant Sjon Tol
Sergeant Tol obtained an Office of Traffic Safety grant to fund the department’s first DUI checkpoint in over ten years, recruiting twenty officers from other county and state agencies to conduct a checkpoint that resulted in four drunk drivers being removed from our roadways. After the DUI operation, Sergeant Tol was in a local shopping center on his day off when a tornado hit our city. Sergeant Tol’s parked pickup was severely damaged as he witnessed the tornado toss several vehicles on their side and injure multiple people.

Sergeant Tol sprang to action, put on his traffic safety vest, and immediately rendered aid to victims in the area. He continued to work for many hours helping our on-duty personnel to remove undrivable vehicles from the roadway and get our City back up and running. We thank Sergeant Tol for his selfless service to our City.

34 2024 EXCHANGE CLUB OF SCOTTS VALLEY

POLICE EMPLOYEE OF THE YEAR
The Scotts Valley Police Department has selected Services Supervisor Chloe Graham for the 2024 Employee of the Year award due to her outstanding contributions to our department and exceptional dedication to her role as a Dispatch and Records Supervisor.

She has set a standard of excellence within our department and her tireless efforts have had a profound impact on our success as an agency.

Supervisor Graham’s dedication to her role, her team, and the department has been nothing short of extraordinary. Her efforts have ensured that our department not only meets but exceeds expectations, and her work ethic and professionalism inspire all who have the privilege of working alongside her. It is for these reasons, and many more, that she is more than deserving of the Exchange Club’s 2024 Police Employee of the Year.

AGENDA ITEM 3.

DATE: 5/7/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/7/2025
TO: Honorable Mayor and City Council
FROM: Scott Garner, Police Captain
APPROVED: Mali LaGoe, City Manager
SUBJECT: AB 481 Military Equipment Use Annual Report and Ordinance Renewing the Military Use Policy

SUMMARY OF ISSUE
California Assembly Bill 481 ("AB 481"), codified in Government Code sections 7070 through 7075, required a law enforcement agency (LEA) to obtain approval from the applicable governing body, via adoption of a “military equipment” use policy by ordinance, prior to the LEA funding, acquiring, or using military equipment no later than May 1, 2022. The City complied with AB 481 by having the Scotts Valley Police Department (“SVPD”) create a policy regarding the use of military equipment and adopting it by Ordinance No. 22-200 on May 18, 2022. In accordance with AB 481, the ordinance was renewed in May 2023 (Ordinance No. 22-200.1), and May 2024 (Ordinance No. 22-200.2), to reaffirm the policy.

AB 481 also requires law enforcement agencies to present an annual report to their governing body consisting of a summary of how each type of equipment was used and the purpose of that use; quantity possessed of each type of equipment; annual costs for each type of equipment; summary of complaints or concerns received for each type of equipment; information disclosing violations of military equipment policies and actions taken in response, as well as results of internal audits; and plans to acquire additional military equipment in the coming year, and the quantity sought.

The SVPD prepared an annual report and on April 14, 2025, held a public meeting to discuss and answer any questions from the public regarding the annual report. The meeting was held in the Council Chambers and no community members attended. The annual report proposes replacing three outdated Bushmaster rifles with three new Colt rifles.

In addition to the annual report, AB 481 also requires the City Council to, within a year of the initial approval, and at least annually thereafter, review the ordinance establishing the military use policy. As was done in 2023 and 2024, in order to comply with this requirement, staff is recommending that the City Council introduce and waive further reading of Ordinance No. 22- 200.3 approving Lexipol Policy 706 pertaining to the funding, acquisition, and use of military equipment as mandated by Assembly Bill 481.

FISCAL IMPACT
Authorization of the replacement of three new outfitted Colt rifles will cost approximately $5,930.00 from the General Fund.

Annual rifle and less-lethal shotgun training cost approximately $1200.

STAFF RECOMMENDATION
Staff recommends the City Council take the following actions:

1. Review and renew Ordinance No. 22-200.3 by introducing and waiving further reading of Ordinance No. 22.200.3 approving Lexipol Policy 706 pertaining to the funding, acquisition, and use of military equipment as mandated by Assembly Bill 481; and

2. Approve the acquisition of the three new Colt rifles as listed in the Annual Report.

TABLE OF CONTENTS

1. 2024 AB 481 Annual Report

2. Ordiance No. 22-200.3 AB 481

3. Exhhibit A Military Equipment Lexipol - Policy 706

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SCOTTS VALLEY POLICE DEPARTMENT
2024 AB 481 ANNUAL REPORT
Chief Stephen Walpole
March 31, 2025

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2024 AB 481 ANNUAL REPORT
AB 481 Military Equipment Use Compliance Requirements:
• Approval of the Military Equipment Use Policy (Completed 5/2022 Policy #706) • Approval of the Military Equipment Use Ordinance (Completed 5/2022 Ord. # 22-200) • Publishing the Policy (Completed 5/2022)
• Annual Report
Annual Report:

In 2022, Assembly Bill 481 required all California Law Enforcement to declare any equipment categorized as Military Equipment. Furthermore, agencies were required to get permission from their governing bodies to possess and utilize that equipment. The Scotts Valley Police abided by the law and obtained permission to utilize two items on the list. In addition, AB 481 requires all agencies to provide an annual report to their governing body and open to public viewing.

Items deemed to be “military equipment” by AB 481 are used as a component of overall best practices for Law Enforcement throughout the country. These tools have been tested in the field and are used by officers to enhance citizen safety and officer safety. Loss of these items would jeopardize the welfare of citizens and SVPD officers.

Officers are trained on all department issued equipment before utilizing the equipment in the field. Officers receiving the equipment undergo training on the nomenclature, functionality, and risks associated with the use of the equipment. Furthermore, officers are required to requalify annually.

Officers must comply with mandated training as regulated by Federal, State and Local statutes. Most of the training is managed and administered by the California Commission on Peace Officer Standards and Training (POST), which sets minimum training standard for California law enforcement officers.

AB 481 requires six elements to be included in the annual report for each type of equipment, which are outlined below.

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2024 AB 481 ANNUAL REPORT
1) Summary of how each type of equipment was used and the purpose of that use:

The Scotts Valley Police Department received approval to use Category 10 - Specialized Firearms (AR-15 .223 patrol rifle) and Category 14 -Kinetic Energy Weapons (Remington 870 shotgun converted to “less-lethal” only). These tools are essential to effectively respond to active threats, protect the community, and de-escalate dangerous situations when possible.

Rifles and Less-Lethal Shotguns were deployed during the annual rifle range and qualification training dates in January 2023. No rifles or shotguns were fired during the below listed field deployment(s).

Rifles and/or Less-Lethal shotguns were deployed during the following incidents:
24V-00495 (06/01/24): Granite Creek Road, Welfare check of a suspicious person in a vehicle. Upon contact, the suspect rammed occupied patrol cars and led officers on a highspeed pursuit. Upon termination of the pursuit, rifles and less-lethal kinetic energy shotguns were deployed.

Inc #2407100001 (07/10/2024) – Officers searched for reported prowler on Crescent Dr Officer(s) assigned to The Santa Cruz County Anti-Crime Team (SCCACT) deployed on the following incidents:
24W-00504 (02/14/2024, 2850 El Camino, Prunedale) – AR-15 deployed during search warrant execution for illegal firearms.
24W-00922 (03/21/2024, 202 Park Place, Santa Cruz) – AR-15 deployed during search warrant execution.
24W-01348 (04/22/2024, 10110 Soquel Dr. Apt 8, Aptos) – AR-15 deployed during search warrant execution.
24W-01741 (05/28/2024, 344 Arroyo Seco, Santa Cruz) – AR-15 deployed during search warrant execution.
24W-02880 (08/20/2024, 100 Sils Rd, Royal Oaks) – AR-15 deployed during search warrant execution.
24W-04385 (12/18/2024, 2004 Ocean Street Ext., Santa Cruz) – AR-15 deployed during search warrant execution.

ϰͮWĂŐĞ
2024 AB 481 ANNUAL REPORT
2) Quantity possessed of each type of equipment:

The department currently has 16 patrol rifles and 5 less lethal shotguns in our inventory. 3) Annual costs for each type of equipment, “including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs”:

City Council approved $3800 to purchase two new Colt AR-15 rifles to replace two outdated existing Bushmaster rifles.

SVPD Officers completed an eight-hour rifle and less-lethal shotgun training and qualification in January 2024. The cost of the ammunition for this training was $1200. 4) Summary of complaints or concerns received for each type of equipment:

There were no complaints or concerns received.
5) Information disclosing violations of military equipment policies and actions taken in response, as well as result of internal audits:

There were no violations of Scotts Valley Police Lexipol policy 706, Military Equipment. 6) Plans to acquire additional military equipment in the coming year, and the quantity sought:

SVPD currently has 8 Bushmaster AR-15 rifles and 8 Colt AR-15 rifles. The Bushmaster rifles were purchased in 2010, and several need replacing due to prolonged use and wear. In 2023, we received approval from City Council to replace two Bushmaster rifles with two new Colt rifles. The two Bushmaster rifles were taken out of service and destroyed, so the number of rifles in our inventory remained the same.

In 2025, we are proposing to replace three outdated Bushmaster rifles with three new Colt rifles. The three Bushmaster rifles will be taken out of service and destroyed, so the number of rifles in our inventory will remain the same. The total cost of the three new Colt rifles completely outfitted with sling, Aimpoint optic, and tactical light will be $5,930.00.

004
ORDINANCE NO. 22-200.3

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY AMENDING TITLE 9 OF THE SCOTTS VALLEY MUNICIPAL CODE BY ADDING CHAPTER 9.22, USE OF MILITARY EQUIPMENT BY THE POLICE DEPARTMENT WHEREAS, on September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481, relating to the use of military equipment by law enforcement agencies; and WHEREAS, Assembly Bill 481 (AB 481), codified at California Government Code sections 7070 through 7075, requires law enforcement agencies to obtain approval of the applicable governing body, by an ordinance adopting a “military equipment” use policy at a regular meeting held pursuant to open meeting laws prior to taking certain actions relating to the funding, acquisition, or use of “military equipment”. The term “military equipment” is defined in California Government Code Section 7070; and WHEREAS, AB 481 allows the City Council to approve the funding, acquisition, or use of military equipment, within its jurisdiction only if it makes specified determinations; and WHEREAS, the proposed military equipment use policy is found within Scotts Valley Police Department Lexipol Policy Manual, General Order 706. The policy was published on February 16, 2022 and displayed on the Scotts Valley Police Department website on March 10, 2022 and was presented to the City Council in 2022, 2023, and 2024. A copy of the policy is attached hereto as Exhibit A; and WHEREAS, the Scotts Valley Police Department Policy 706 meets the requirements of California Government Code 7070; and
WHEREAS, this ordinance adds to the Municipal Code to affirm Scotts Valley Police Department Policy 706 and authorize the use of “military equipment” by the members of the Scotts Valley Police Department as described in Policy 706; and WHEREAS, in the enactment of this ordinance, the City followed the guidelines adopted by the State of California and published in the California Code of Regulations, Title 14, Section 15000, et seq. and found this activity is not a “project” as defined by California Environmental Quality Act (CEQA) because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.

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

SECTION 1. The foregoing facts are adopted as findings of the City Council as though set forth in fully within the body of this ordinance.

SECTION 2. That Chapter 9.22 of Title 9 of the Scotts Valley Municipal Code reads as follows:

006
“CHAPTER 9.22 - MILITARY EQUIPMENT USE POLICY.

Section 9.22.010 – Findings and Purpose.
(a) The City Council has made the following determinations:
(1) The military equipment inventoried and presented to the City Council is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety; and
(2) The Military Equipment Use Policy (“Policy”) will safeguard the public’s welfare, safety, civil rights, and civil liberties; and (3) The military equipment identified in the Military Equipment Use Policy is reasonably cost effective compared to available alternatives that can achieve the same objective of Officer and civilian safety; and
(4) Prior military equipment use complied with the applicable Equipment Use Policy (which included equipment now defined as military equipment) that was in effect at the time, or if prior uses did not comply with the accompanying Military Equipment Use Policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.
(b) The Police Department has submitted a proposed Policy to the City Council and has made those documents available on the Police Department’s website for at least 30 days prior to the public hearing concerning the military equipment at issue.
(c) The Policy was considered by the City Council as an agenda item in an open session of a regular meeting, noticed in accordance with the Ralph M. Brown Act, at which public comment was permitted.
(d) The Policy shall be made publicly available on the Police Department’s website for as long as the military equipment is available for use. (e) The Police Department shall submit an annual military equipment report to the City Council, containing the information required in Government Code Section 7072, and the City Council shall determine whether each type of military equipment identified in that report has complied with the standards for approval set forth in (a)(1)-(4) above.
(f) The City Council shall review this ordinance, and vote on whether to renew it, on an annual basis at a regular meeting, in accordance with Government Code Section 7071(e)(2)
(g) The City Council approves the use of the Policy and finds that it satisfies the requirements of Government Code Section 7070(d).”
SECTION 3. SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of

006
competent jurisdiction such portion shall be deemed a separate, distinct and independent provision of such Ordinance and shall not affect the validity of the remaining portions thereof.

SECTION 4. REPEALS CONFLICTING ORDINANCES. All other ordinances of the City of Scotts Valley or provisions of the Scotts Valley Municipal Code which are in conflict with this Ordinance are hereby repealed to the extent of such conflict.

SECTION 5. CEQA COMPLIANCE. The City Council finds and determines that the enactment of this Ordinance is not a “project” as that term is used in the California Environmental Quality Act (“CEQA;” Cal. Pub. Resources Code Section 21000 et seq.) or the State CEQA Guidelines (Cal. Code of Regs., Title 14, Section 15000 et seq.).

Therefore, no environmental assessment is required or necessary.

SECTION 6. EFFECTIVE DATE. The above and foregoing ordinance was introduced for a first reading on May 7, 2025, and passed and adopted on May 21, 2025, at a duly held meeting of the City Council of the City of Scotts Valley by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ______________________________
Derek Timm, Mayor
ATTEST:

Cathie Simonovich, City Clerk

APPROVED
AS TO FORM:

Kirsten Powell, City Attorney

Policy
706
Scotts Valley Police Department
Scotts Valley PD CA Policy Manual
Copyright Lexipol, LLC 2022/09/01, All Rights Reserved.

Published with permission by Scotts Valley Police Department Military Equipment - 1
Military Equipment
706.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
706.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

Scotts Valley Police Department
Scotts Valley PD CA Policy Manual
Military Equipment
Copyright Lexipol, LLC 2022/09/01, All Rights Reserved.

Published with permission by Scotts Valley Police Department Military Equipment - 2
706.2 POLICY
It is the policy of the Scotts Valley Police Department that members of this agency comply with the provisions of Government Code § 7071 with respect to military equipment. 706.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this agency to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying agency equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Scotts Valley Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the agency’s funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the agency website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
706.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:
[Insert attachment here]
706.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the agency website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):

Scotts Valley Police Department
Scotts Valley PD CA Policy Manual
Military Equipment
Copyright Lexipol, LLC 2022/09/01, All Rights Reserved.

Published with permission by Scotts Valley Police Department Military Equipment - 3
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this agency. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 706.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment should not be used by any other law enforcement agency or member in this jurisdiction unless the military equipment is approved for use in accordance with this policy. 706.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the agency website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in agency inventory. 706.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.

AGENDA ITEM 4.

DATE: 5/7/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 5/7/2025
TO: Honorable Mayor and City Council
FROM: Stephen Walpole, Chief of Police
APPROVED: Mali LaGoe, City Manager
SUBJECT: Introduction of Ordinance 7.8 amending Title 8 of the Scotts Valley Municipal Code by repealing Chapter 8.04 in its entirety and by adding a new Chapter 8.05, Graffiti Abatement - Public Nuisance

SUMMARY OF ISSUE
During the first quarter of 2025, there was a visible increase in the amount of graffiti in and around the City. The past practice of the City was to have city staff abate the graffiti when it was on public property and to request private citizens to remove the defacement at their earliest convenience when it was found on their private property. The City Municipal Code did not specifically address graffiti as a criminal act, the penalty for the violation, or the process for graffiti abatement.

At the City Council meeting on April 16th, City Council Member Clark proposed a future agenda item for a graffiti ordinance which would encourage individuals and businesses to quickly clean up graffiti on private property. This new ordinance repeals Chapter 8.04, which is duplicative of the nuisance abatement chapter in Title 4, and adds a new Chapter 8.05 for the purpose of addressing graffiti as a violation of the municipal code, the fines for violations, and the process of abatement.

Under this new chapter, property owners will have an obligation to remove graffiti visible from public rights-of-way or public places within 10 days of notification. If the property owner fails to remove the graffiti, the City has the right to go on to the property to remove the graffiti. All costs incurred by the City in removing the graffiti will be charged to the property owner.

Anyone violating the terms of this chapter can be charged criminally. In addition, administrative penalties have been established in this ordinance for property owners who fail to remove graffiti and people who place graffiti on public or private property. The administrative penalties for property owners is $250 for the first violation, $500 for the second violation and $1000 for the third and any subsequent violation in a 12 month period. The administrative penalties for people placing graffiti on public or private property is $1000 for the first violation, $1500 for the second violation and $2000 for the third and any subsequent violation in a 12 month period.

FISCAL IMPACT
Enforcement of this ordinance could require significant staff time and, although abatement costs can be recovered, it is unlikely that the full cost of staff efforts will be collected.

STAFF RECOMMENDATION
Introduce Ordinance 7.8 amending Title 8 of the Scotts Valley Municipal Code by repealing Chapter 8.04 in its entirety and by adding a new Chapter 8.05, Graffiti Abatement - Public Nuisance

TABLE OF CONTENTS

1. Ordinance No. 7.8 Graffiti

ORDINANCE NO. 7.8

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY AMENDING TITLE 8 OF THE SCOTTS VALLEY MUNICIPAL CODE BY REPEALING CHAPTER 8.04 IN ITS ENTIRETY AND BY ADDING A NEW CHAPTER 8.05,

GRAFFITI ABATEMENT- PUBLIC NUISANCE
WHEREAS, the City of Scotts Valley (the “City”) values and strives to maintain a positive community aesthetic and quality of life for its community; and WHEREAS, the presence of graffiti creates community blight, erodes community aesthetics, and reduces property values, thereby degrading the overall quality of life in the community; and
WHEREAS, graffiti suspects oftentimes seek notoriety for their designs to boost their profile within the graffiti community and the prolonged presence of graffiti encourages the proliferation of additional graffiti and other acts of vandalism; and WHEREAS, prompt removal of graffiti improves the overall community aesthetic and discourages additional acts of graffiti and other crime; and WHEREAS, addressing graffiti requires the use of City services including law enforcement reporting and investigations, and maintenance crews removal and cleanup; and
WHEREAS, through prompt reporting and removal of graffiti, property owners play a vital role in helping to curb its presence and proliferation; and WHEREAS, pursuant to California Government Code sections 38772 and 53069.3, the City may enact an ordinance to provide for the summary abatement of graffiti at the expense of the person causing the graffiti or the property owner or for the use of City funds to remove graffiti from publicly or privately owned real or personal property located within the City; and
WHEREAS, the City Council of the City desires to adopt an ordinance to declare graffiti a nuisance and provide for the summary abatement of the nuisance.

NOW, THEREFORE, the City Council of the City of Scotts Valley does hereby ordain as follows:

Section 1. Title 8 of the Scotts Valley Municipal Code is hereby amended by repealing Chapter 8.04, Nuisance Abatement, in its entirety.

Section 2. Title 8 of the Scotts Valley Municipal Code is hereby amended by adding Chapter 8.05, Graffiti Abatement- Public Nuisance, to read as follows:
“8.05 – GRAFFITI ABATEMENT – PUBLIC NUISANCE

8.05.010 - Graffiti Defined

8.05.020 - Graffiti Declared A Nuisance

8.05.030 - Placement Of Graffiti Prohibited

8.05.040 - Graffiti Prohibited

8.05.050 - Graffiti – Removal

8.05.060 - Graffiti – Violations

8.05.010 - GRAFFITI DEFINED.

As used in this chapter, “graffiti” means any unauthorized form of painting, scratching, writing, or inscription, regardless of the content or nature of the material used, which is placed upon any private structure, fixture, sign, or sidewalk in any location where it can be viewed from any public street, walkway, building, park, or facility, or upon any public structure, fixture, sign or sidewalk, and which is without the authorization of the owner or the other person in control of the property.

8.05.020 - GRAFFITI DECLARED A NUISANCE.

Graffiti is hereby determined to be a nuisance because its continued existence constitutes a visual blight upon the area in which it is located.

8.05.030 - PLACEMENT OF GRAFFITI PROHIBITED.

It shall be unlawful to place any graffiti within the City of Scotts Valley.

8.05.040 - GRAFFITI PROHIBITED.

It shall be unlawful for any person owning or otherwise in control of any real property within the City of Scotts Valley to permit or allow any graffiti to remain on such property.

8.05.050 GRAFFITI – REMOVAL
A. Removal by Responsible Party. A person who is the owner or who has primary responsibility for control of property or primary responsibility for the repair or maintenance of property that is defaced with graffiti shall remove or cause the removal of such graffiti within ten (10) days after notice of same, or shall make arrangements with the City for the City to cause such removal in accordance with the requirements of this section. If the property owner does not promptly eradicate the graffiti or make arrangements satisfactory to the City for eradication of the graffiti within ten (10)days of actual notice or within fourteen (14) days of mailed notice, City agents may do so in accordance with Section 8.05.050C.

B. Right of City to Remove with Owner's Consent. Whenever the City Manager or his/her designee determines that graffiti is so located on public or private property within the City so as to be capable of being viewed by persons utilizing any public right-of-way

or public place in the City, the City Manager or his/her designee is authorized to provide for the removal of the graffiti upon the following conditions:

1. In removing the graffiti, the painting or repair shall be limited to the minimum necessary to properly restore the defaced area.

2. Where a structure is owned by a public entity other than the City, the removal of the graffiti may be authorized only after securing the written consent of the public entity having jurisdiction over the structure.

3. Where a structure is privately owned, the removal of the graffiti by City personnel or by volunteers or a private contractor under the direction of the City may be authorized only after securing the written consent of the owner, agreement to reimburse the City for the costs of removal, and a release of the City from liability, on a form approved by the City Attorney. The City will use paint that is readily available and may not match the original color.

C. Abatement and Cost Recovery Proceedings Following Failure to Obtain Owner's Consent. If a responsible party fails to remove or cause the removal of the offending graffiti within the time herein specified, or if the City shall have requested consent to remove or paint over the offending graffiti and the responsible party shall have refused consent or failed to respond to request for entry on the terms of this section, the City shall commence abatement and cost recovery proceedings for the removal of the graffiti in accordance with Title 4.

1. Because prompt removal minimizes the blight created by graffiti and has been shown to be one of the greatest disincentives to graffiti proliferation, the City Manager is authorized to develop procedures and/or volunteer programs whereby City personnel or other persons under the direction of the City may enter onto private property for the purpose of removing and/or painting over the graffiti. Such a program shall include provisions requiring the City to first attempt notification of the affected property owners, and upon notification, provide them with an opportunity to promptly eradicate the graffiti.

2. Prior to the City removing graffiti as outlined under this Section 8.05.050C, the City shall first attempt to notify the affected property owners, and upon notification, providing them with an opportunity to promptly eradicate the graffiti. The City shall contact property owners requesting that the owners either eradicate the graffiti or make satisfactory arrangements for the eradication of the graffiti within ten (10) days of actual notice or fourteen (14) days of mailed notice. If property owners do not eradicate the graffiti or make arrangements satisfactory to the City for the eradication of the graffiti within this time period, a second notice shall be provided stating that, if the owners do not either eradicate the graffiti or make satisfactory arrangements for the eradication of the graffiti within five (5) days of actual notice or within seven (7) days of mailed notice,

City agents may enter the property and eradicate the graffiti at the property owner’s expense. Making satisfactory arrangements would include granting permission to the City to eradicate the graffiti at the property owner’s expense.

3. If the property owner(s) cannot be promptly contacted personally or by mail within ten (10) days of the first attempted notification, City agents may proceed to eradicate the graffiti. The City will attempt to closely match the color of paint used to cover the graffiti; however, the City Council recognizes that the paint used in such eradication efforts may not closely match the existing paint; however, the City Council finds that the eradication will not damage private property more than the damage that has already resulted from the existence of the graffiti. The eradication authorized by this section shall not, without property owner permission, extend to areas not readily visible to the general public.

4. In any situation where the City is compelled to remove the graffiti as provided in this Chapter, the City may proceed with abatement cost recovery from the property owner as outlined in Chapter 4.24- Recovery of Civil Penalties and Abatement Costs and as outlined and allowed under California Government Code Sections 38772 and 53069.3. In the event the graffiti is placed by a minor in violation of this Chapter, the parents of such minor shall be financially responsible for any fees or costs imposed in accordance with this Chapter.

8.05.060 - GRAFFITI – VIOLATIONS.

A. Any person knowingly and willfully violating the provisions of this chapter shall be deemed guilty of an infraction.

B. Except as provided in subsection (a), any person violating, or causing or permitting the violation of, this chapter shall be deemed guilty of a misdemeanor if a defendant has been convicted of three or more violations of this chapter within the twelve-month period preceding the commission of the offense alleged in the accusatory pleading. For this purpose, a bail forfeiture shall be deemed to be a conviction of the offense charged.

C. If a minor is personally unable to pay any fine levied for violating this chapter, the parent or legal guardian of the minor shall be liable for payment of the fine. A court may waive payment of the fine by the parent or legal guardian upon a finding of good cause.

D. Any individual found guilty of a violation of this section shall reimburse the City of Scotts Valley for any and all costs the City may incur in removing the graffiti. Such reimbursement shall be in addition to any other penalties imposed by the court pursuant to this section. If the violator is a minor, the parent or guardian shall also be responsible for such reimbursement.

E. In addition to the violations noted above, any violation of the provision of this Chapter may be cited in accordance with Chapter 4.14.

1. The administrative fine for an administrative citation issued for violation of Section 8.05.030 of this Chapter shall be as follows:
a. An administrative fine of one thousand dollars ($1,000.00) for the first violation in any one (1) year period;
b. An administrative fine of one thousand five hundred dollars ($1,500.00) for the second violation in any one (1) year period; and c. An administrative fine of two thousand dollars ($2,000.00) for the third and each subsequent violation.

2. The administrative fine for an administrative citation issued for violation of Section 8.05.040 of this Chapter shall be as follows:
a. An administrative fine of two hundred fifty dollars ($250.00) for the first violation in any one (1) year period;
b. An administrative fine of five hundred dollars ($500.00) for the second violation in any one (1) year period; and
c. An administrative fine of one thousand dollars ($1,000.00) for the third and each subsequent violation in any one (1) year period.” Section 3. CEQA COMPLIANCE. The City Council hereby finds that it can be seen with certainty that there is no possibility the adoption and implementation of this Ordinance may have a significant effect on the environment. The Ordinance is therefore exempt from the environmental review requirements of the California Environmental Quality Act pursuant to Section 15061(b)(3) of Title 14 of the California .

Section 4. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase or portion of this Ordinance, 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 portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

Section 5. To the extent the provisions of the Scotts Valley Municipal Code as amended by this Ordinance are substantially the same as the provisions of that Code as they read immediately prior to the adoption of this Ordinance, then those provisions shall be construed as continuations of the earlier provisions and not as new enactments.

Section 6. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption.

Section 7. PUBLICATION. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of adoption and shall post a certified copy of this Ordinance, including the vote for and against same, in the Office of the City Clerk, in accordance with Government Code Section 36933.

This Ordinance was introduced on the 7th day of May, 2025, and passed and adopted on the 21st day of May, 2025, at a duly held meeting of the City Council of the City of Scotts Valley by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
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Derek Timm, Mayor
ATTEST:
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Cathie Simonovich, City Clerk