By Brett Callwood
At the City Council meeting on the evening of Tuesday, December 17, staff presented the Financial Audit report for the fiscal year ending June 2024, with the help of Ron Lopez of CPA consultancy group Gruber and Lopez, Inc, the company that was contracted to do the audit.
Financial highlights included that fact that total revenue for the fiscal year 2023-24 was $86,857,509, and total expenditures came in at $85,910,428. That left a budget surplus of $947,081.
The General Reserve beginning balance was $34,203,494. Subtract the property acquisition amount of $1,659,958, and add the budget surplus, and the final General Reserve balance is $33,490,617.
City Manager Clint Osorio continued the presentation, with a detailed SWOT (strengths, weaknesses, opportunities, threats) analysis.
On the positive side, Gardena’s strengths include workforce excellence, a diverse tax base, and that healthy General Fund reserve balance. Opportunities include the recapture of the 0.25% loss in sales tax revenue (taken by the state), to invest in green energy and obtain federal credits as well as for environmental reasons, and to improve and modernize the city.
On the negative side, the City’s weaknesses include an over-reliance on card club (Lucky Lady, Hustler Club) revenues, and an aging infrastructure. Threats include CalPERS required contributions for unfunded accrued liability, the recent LA County Fire Protection Service Cost Adjustment, and casino legislations.
The Native American tribes maintain that Vegas-style gambling is illegal in card rooms outside of their jurisdiction, even with loopholes that involve a third party acting as the bank (rather than the house). That legal action is forthcoming, by September 2025 at the latest.
The full report can be found at https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/3035136/Gardena_Annual_Comprehensive_Financial_Report__ACFR__2024_-_Final.pdf
Item 12B called on the City Council to,”authorize the City Manager to execute a Master Equity Lease Agreement and Full Maintenance Agreement for vehicle leasing with Enterprise Fleet Management with an expiration date of April 18, 2026, which can be extended one additional year upon the request of Sourcewell and written agreement by Enterprise Fleet Management to April 18, 2027.”
That item passed unanimously, 5-0.
Item 12C called for the approval of a Side Letter between the City of Gardena and the Gardena Municipal Employees Association (GMEA).
The staff note explains that, “The proposed side letter will effectuate a change to allow probationary, seasonal, temporary, provisional, transitional and part-time employees to be eligible to participate in a Closed- Promotional recruitment. Only those employees who have received a satisfactory rating or higher, on the most recent performance evaluation and not on a performance improvement plan, may be eligible to apply.” That passed unanimously.
Community Development Item 13A called for, “Approval of Consultant Agreement with Kimley-Horn to Provide Environmental Consulting Services in Compliance with the California Environmental Quality Act for the Terreno Industrial Center Private Development Project.” That passed unanimously.
Police Item 15A called for, “Authorization to Award a Two-Year Video Policing System Camera Maintenance and Repair Contract to DataGear, Inc. in the Amount Not to Exceed $430,000.” That also passed unanimously.
Finally, Transportation Item 18A called for the Council to, “Approve Easement and Right of Way for Southern California Edison to Provide Electrical Power for Vehicle Charging Stations.”
“GTrans is participating in SCE’s Charge Ready Transport (CRT) Program, which offers low-to no-cost electrical system upgrades to support the installation of electric vehicle (EV) charging equipment for qualifying vehicles,” wrote staff. “Under the program, SCE will design, construct, and install the necessary infrastructure on the utility-side of the electric meter. Once electrical work is complete, GTrans will install its seven existing chargers on the customer-side of the meter. In order to begin its work, SCE requires the City to grant an easement and right of way for a segment of the GTrans yard leading from 139th street to the charging station location within the yard.”
That too passed unanimously, and the Council adjourned until January 14.
