Amid questions about his use of city funds, Guadalupe Public Safety Director Michael Cash announced his resignation Tuesday night, seemingly catching council members by surprise although he believed they were about to terminate him.

Cash, who as public safety director had led the Guadalupe Police and Fire departments for eight years, said he resigned “due to circumstances surrounding my meeting” with Guadalupe’s labor attorney from the Liebert Cassidy Whitmore law firm.

“The city has advised me they want to go in a different direction, which I completely respect, and I believe it’s in the best of all parties,” Cash said Tuesday. “I do this to protect my family, my wife and whatever options I have for the future. I feel I’ve accomplished everything I set out to do as I leave as your chief.”

Later, Cash confirmed that the city accepted his resignation and that his employment ended at 5 p.m. Wednesday.

A day earlier during his regular public safety director report at the City Council meeting Tuesday night, he recounted the various accomplishments and achievements of the departments under his leadership before concluding with his resignation.

He referenced a recent meeting with the city’s labor attorney as a reason he believed his performance evaluation would not end positively, explaining that he resigned to get the severance pay allowed in his contract.

In October 2025, the City Council approved a three-year agreement with Cash that stated if he resigned after the employer’s suggestion that he quit — “whether formal or informal” — then the resignation could be considered a termination.

If terminated by the city, the employment contract calls for Cash to get a severance payment equal to six months of his $167,315 annual salary, or $83,658.

Cash said he believed that if he waited until after the council voted on his performance evaluation, he would lose out on the six-month severance pay.

“So, the only way that I can protect myself, my family, to get that severance pay is to terminate the contract. I love what I do. I can still do it,” he added.

Before announcing his resignation, Cash ticked off a number of accomplishments during his tenure, including sharing that the small city’s violent crime rate falls way below other cities of similar size.

“That is truly amazing,” he added.

After his announcement, council members expressed surprise since they were set to discuss his job performance issues in a closed session at the end of the public meeting.

On Wednesday, City Attorney Philip Sinco said the council did not take any reportable action during the closed session.  

Along with the city manager, the public safety director is one of two full-time employees hired and fired by the council. 

“I can say wholeheartedly that the council as a whole has not discussed the dismissal of the chief. I don’t even think that was on our radar,” Councilmwoman Whitney Furness said before the closed session. 

However, Sinco noted that the state’s open meeting laws limited discussion on the matter. 

Sinco said the notice delivered ahead of the closed session spelled out the allegations. Those allegations focused on faulty fiscal management and budget oversight plus a lack of compliance with city purchasing  approval, documentation and accounting procedures.

Cash said he wasn’t told about the allegations until a day before Tuesday’s meeting and that he lacked details. He denied acting improperly or defending some of his actions.

“It’s hard to work on and improve if someone doesn’t tell you what the problem is,” he said. 

Lawanda Lyons Pruitt, president the NAACP’s Santa Maria/Lompoc chapter, spoke in support of Cash, contending the city was attempting to malign his character and record. 

“What makes this attempt particularly egregious is that members of your body are also persons of color,” she said. “You above all must understand the insidious nature of systemic racism and its harmful practices. You know what it looks like when a dedicated public servant of color is targeted, and you know the damages that is causes.”

Cash has worked for 44 years in law enforcement, including the past 13 years as a police chief. 

Before arriving in Guadalupe in 2018, he led the Southwestern College Campus Police Department for the community college in Chula Vista. He also previously worked for the San Diego Police Department.