SOUTHERN CALIFORNIA EDISON COMPANY
NET BILLING TARIFF OR NET ENERGY METERING AND RENEWABLE
ELECTRICAL GENERATING FACILITY INTERCONNECTION AGREEMENT
FOR GENERATING FACILITIES SIZED ONE MEGAWATT AND SMALLER Form 16-344 17 of 17
07/2025
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(N)
City of Gardena
Gardena City Council
Meeting
AGENDA REPORT
SUMMARY
Agenda Item No. 10L.
Section: CONSENT
CALENDAR
Meeting Date: June 23,
2026
TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE: Approve Agreement between the Los Angeles County Metropolitan Transportation Authority and the City of Gardena for GTrans Expansion Bus/Vehicles and Associated Infrastructure Projects COUNCIL ACTION REQUIRED:
Staff Recommendation: Approve Agreement
RECOMMENDATION AND STAFF SUMMARY:
GTrans was awarded $12,375,000 in funding through the South Bay Cities Council of Governments (SBCCOG) under the Measure R South Bay Transit Investments Program. These funds, administered through the Los Angeles County Metropolitan Transportation Authority (Metro), will support the purchase of expansion buses and associated infrastructure improvements. The funding will support the acquisition of the double-deck buses recently approved by City Council, design and construction of any required infrastructure modifications, and the purchase of additional expansion/expanded capacity revenue vehicles planned for the near future. The Metro Board approved the project in September 2025.
The agreement provides funds on a reimbursement basis for eligible expenditures. GTrans is required to submit project documentation to Metro in order to receive the reimbursement.
Therefore, it is recommended that Council authorize the execution of a funding agreement between the Los Angeles County Metropolitan Transportation Authority and the City of Gardena for GTrans' Expansion Bus/Vehicles and Associated Infrastructure Projects.
FISCAL IMPACT/COST:
Funds for this project were included in the capital budget for FY27 and will be included in capital budgets in subsequent years for Council consideration. Specific expenditures and/or obligations against these funds will come before City Council for approval as required. There is no impact to General Fund.
APPROVED:
___________________________
Clint Osorio, City Manager
Attachments
MR524.03_GTrans_Expansion_Buses_and_Infrastructure_Project_MOU.pdf FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 1 Measure R Funding Agreement – Highways – General
MEASURE R TRANSIT INVESTMENT
FUNDING AGREEMENT
This Funding Agreement (“FA”) is made and entered into effective as of July 1, 2026 (“Effective Date”), and is by and between the Los Angeles County Metropolitan Transportation Authority ("LACMTA") and City of Gardena ("GRANTEE") for GTRANS: Purchase of up to 15 Expansion Buses, LACMTA Project ID# MR524.03, (the "Project"). This Project is eligible for funding under Line 17A of the Measure R Expenditure Plan.
WHEREAS, LACMTA adopted Ordinance #08-01, the Traffic Relief and Rail Expansion Ordinance, on July 24, 2008 (the “Ordinance”), which Ordinance was approved by the voters of Los Angeles County on November 4, 2008 as “Measure R” and became effective on January 2, 2009.
WHEREAS, LACMTA Board, at its July 22, 2021 meeting, approved the amendment to the Measure R Ordinance (the “Ordinance”), on which allow the transfer between the highway and transit subfunds and added a program of transit projects in the Measure R South Bay Transit Investment Program.
WHEREAS, the LACMTA Board, at its September 23, 2021 meeting, approved programmed $12,375,000, in Measure R funds to GRANTEE for Construction Capital, subject to the terms and conditions contained in this FA; and
WHEREAS, the LACMTA Board, delegated administrative authority to modify the scope of work of projects and project development phases consistent with eligibility requirements; and
WHEREAS, the funding set forth herein is intended to fund Plans, Specifications and Estimates (PS&E) and Construction Capital of the Project.
WHEREAS, the LACMTA Board, at its September 22, 2022, September 28, 2023, September 26, 2024 and September 25, 2025 meeting, approved reprogramming of the Measure R Funds previously approved; and
WHEREAS, the Funds are currently programmed as follows: $700,000 in Measure R Funds in Fiscal Years (FY) 2026-27; $6,500,000 FY 2027-28; and $5,175,000 FY 2028-29. The total designated for Construction Capital of the Project is $12,375,000.
WHEREAS, a Letter of No Prejudice (LONP) was issued for the Project on February 23, 2026 allowing the GRANTEE to spend its local match funds in the amount up to $700,000 for the (PS&E) and Construction Capital phases of the Project.
NOW, THEREFORE, the parties hereby agree as follows:
The terms and conditions of this FA consist of the following and each is incorporated by reference herein as if fully set forth herein:
1. Part I – Specific Terms of the FA
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 2 Measure R Funding Agreement – Highways – General
2. Part II – General Terms of the FA
3. Attachment A – Project Funding
4. Attachment B – Measure R Expenditure Plan Guidelines
5. Attachment B-1 – Expenditure Plan - Cost & Cash Flow Budget
6. Attachment C – Scope of Work
7. Attachment D – Project Reporting and Expenditure Guidelines
8. Attachment D-1 – intentionally omitted
9. Attachment D-2 – Quarterly Progress/Expenditure Report
10. Attachment E – Bond Requirements
11. Any other attachments or documents referenced in the above documents
In the event of a conflict, the Special Grant Conditions, if any, shall prevail over the Specific Terms of the FA and any attachments and the Specific Terms of the FA shall prevail over the General Terms of the FA.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 3 Measure R Funding Agreement Highw ays General
IN W ITNESS W HEREOF, the parties have caused this FA to be executed by their duly authorized representatives as ofthe dates indicated below :
LACMTA:
LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY By: ________________________________________ Date: ____________________ Stephanie W iggins
ChiefExecutive Of f icer
APPROV ED AS TO FORM:
DAW YN R. HARRISON
County Counsel
By: ________________________________________ Date: ____________________ Deputy
GRANTEE:
CITY OF GARDENA
By: _______________________________________ Date: ____________________ Tasha Cerda
Mayor
APPROV ED AS TO FORM:
By: _______________________________________ Date: ____________________ Carmen V asquez
City Attorney
ATTEST:
By: _______________________________________ Date: ____________________ Mina Semenza
City Clerk
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Ü ¿ ¬ » æ î ð î ê ò ð ê ò ð í ï ê æ ð ì æ ï é ó ð è ù ð ð ù Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 6/11/2026
FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 4 Measure R Funding Agreement – Highways – General
PART I
SPECIFIC TERMS OF THE FA
1. Title of the Project (the "Project"): GTRANS: Purchase of up to 15 Expansion Buses- Plans, Specifications and Estimates (PS&E) and Construction Capital. LACMTA Project ID# MR524.03.
2. Grant Funds:
2.1 Programmed Funds for this Project consist of the following: Measure R Funds.
2.2 To the extent the Measure R Funds are available; LACMTA shall make to GRANTEE a grant of the Measure R funds in the amount of $12,375,000 (the “Fund”) for the Project. LACMTA Board of Directors’ action of September 23, 2021, granted the Measure R Funds for the Project. LACMTA Board of Directors’ actions of September 22, 2022, September 28, 2023, September 26, 2024 and September 25, 2025, reprogrammed the Measure R Funds for the Project. The Funds are programmed over three years for Fiscal Years (FY) 2026-27, FY 2027-28 and FY 2028-29.
3. This grant shall be paid on a reimbursement basis. GRANTEE must provide the appropriate supporting documentation with the Quarterly Progress/Expenditure Report.
GRANTEE Funding Commitment, if applicable, must be spent in the appropriate proportion to the Funds with each quarter’s expenditures. LACMTA will withhold five percent (5%) of eligible expenditures per invoice as retention pending an audit of expenditures and completion of scope of work.
4. Attachment A the “Project Funding” documents all sources of funds programmed for the Project as approved by LACMTA. The Project Funding includes the total programmed funds for the Project, including the Funds programmed by LACMTA and, if any, the GRANTEE Funding Commitment of other sources of funding. The Project Funding also includes the fiscal years in which all the funds for the Project are programmed. The Funds are subject to adjustment by subsequent LACMTA Board Action.
5. Attachment B-1 is the Expenditure Plan- Cost & Cash Flow Budget (the "Expenditure Plan"). It is the entire proposed cash flow, the Budget and financial plan for the Project, which includes the total sources of all funds programmed to the Project, including GRANTEE and other entity funding commitments, if any, for this Project as well as the fiscal year and quarters the Project funds are anticipated to be expended. GRANTEE shall update the Expenditure Plan annually, no later than December 31, and such update shall be submitted to LACMTA’s Senior Executive Officer of Construction & Engineering in writing. If the LACMTA’s Senior Executive Officer of Construction & Engineering concurs with such updated Expenditure Plan in writing, Attachment B-1 shall be replaced with the new Attachment B-1 setting forth the latest approved Expenditure Plan. Payments under this FA shall be consistent with Attachment B-1 as revised from time to time. Any change to the final milestone date must be made by a fully executed amendment to this FA.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 5 Measure R Funding Agreement – Highways – General
6. Attachment C is the “Scope of Work”. The GRANTEE shall complete the Project as described in the Scope of Work. This Scope of Work shall include a detailed description of the Project and the work to be completed, including anticipated Project milestones and a schedule consistent with the lapsing policy in Part II, Section 9, and a description of the Project limits, if applicable. No later than December 31 of each year, GRANTEE shall notify LACMTA if there are any changes to the final milestone date set forth in the schedule or any changes to the Scope of Work. If LACMTA agrees to such changes, the parties shall memorialize such changes in an amendment to this FA. Work shall be delivered in accordance with the schedule and scope identified in this FA unless otherwise agreed to by the parties in writing in an amendment to this FA. If GRANTEE fails to meet milestones or fails to deliver the Project, LACMTA will have the option to suspend or terminate the FA for default as described in Part II, Sections 2, 9, 10 and 11 herein below. To the extent interim milestone dates are not met but GRANTEE believes and can show documentation acceptable to LACMTA supporting GRANTEE’S ability to make up the time so as to not impact the final milestone date, GRANTEE shall notify LACMTA of such changes in its Quarterly Progress/Expenditure Reports and such interim milestone dates will automatically be amended to the latest interim milestone dates provided in the Quarterly Progress/Expenditure Reports Attachment D-2. In no event can the final milestone date be amended by a Quarterly Progress/Expenditure Report.
7. No changes to this FA, including but not limited to the Funds, and any other source of funds from LACMTA in the Project Funding, Expenditure Plan or the Scope of Work shall be allowed without an amendment to the original FA, approved and signed by both parties.
8. Attachment D is the “Project Reporting & Expenditure Guidelines”. GRANTEE shall complete the “Quarterly Progress/Expenditure Report”. The Quarterly Progress/ Expenditure Report are attached to this FA as Attachment D-2 in accordance with Attachment D – Project Reporting and Expenditure Guidelines.
9. LACMTA anticipates it may need to avail itself of lower cost bonds or other debt, the interest on which is tax exempt for federal tax purposes and/or Build America Bonds as defined in the American Reinvestment and Recovery Act of 2009 or similar types of bonds (collectively, the 'Bonds") to provide at least a portion of its funding commitments under this Agreement to GRANTEE. GRANTEE shall ensure that the expenditure of the Funds disbursed to GRANTEE does not jeopardize the tax-exemption of the interest, the Federal subsidy payment or the tax credit, as applicable, as specified in the Bond Requirements attached as
Attachment E to this Agreement. GRANTEE agrees to provide LACMTA with progress reports, expenditure documentation, and any other documentation as reasonably requested by LACMTA and necessary for LACMTA to fulfill its responsibilities as the grantee or administrator or bond issuer of the Funds. With regard to LACMTA debt financing to provide any portion of the Funds, GRANTEE shall take all reasonable actions as may be requested of it by LACMTA's Project Manager for the Project, to assist LACMTA in demonstrating and maintaining over time, compliance with the relevant sections of the Federal Tax Code to maintain such bonds tax status.
10. No changes to the (i) Grant amount, (ii) Project Funding, (iii) the Scope of Work (except as provided herein), (iv) Final milestone date or (v) Special Grant Conditions, shall be allowed without a written amendment to this FA, approved and signed by the LACMTA Chief Executive Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 6 Measure R Funding Agreement – Highways – General
Officer or his/her designee and GRANTEE. Modifications that do not materially affect the terms of this FA, such as redistributing Funds among existing budget line items or non- material schedule changes must be formally requested by GRANTEE and approved by LACMTA in writing. Non-material changes are those changes which do not affect the grant amount or its schedule, Project Funding, or the Scope of Work, including the Work schedule.
11. LACMTA's Address:
Los Angeles County Metropolitan Transportation Authority One Gateway Plaza
Los Angeles, CA 90012
Attention: Annie Chou
LACMTA Project Manager
Mail Stop 99-23-3
Phone (213) 418-3453
E-mail [email protected]
12. GRANTEE's Address:
Agency: City of Gardena
Address: 13999 S. Western Ave Gardena CA, 90249
Attention: Dana E. Pynn, Transit Administrative Officer Phone: 310.965.8811
Email:
[email protected]
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 7 Measure R Funding Agreement – Highways – General
PART II
GENERAL TERMS OF THE FA
1. TERM
The term of this FA shall commence on the Effective Date of this FA, and shall terminate upon the occurrence of all of the following, unless terminated earlier as provided herein: (i) the agreed upon Scope of Work has been completed; (ii) all LACMTA audit and reporting requirements have been satisfied; and (iii) the final disbursement of the Funds has been made to GRANTEE. All eligible Project expenses as defined in the Reporting and Expenditure Guidelines (Attachment D), incurred after the FA Effective Date shall be reimbursed in accordance with the terms and conditions of this FA unless otherwise agreed to by the parties in writing.
2. SUSPENSION OR TERMINATION
Should LACMTA determine there are insufficient Measure R Funds available for the Project, LACMTA may suspend or terminate this FA by giving written notice to GRANTEE at least thirty (30) days in advance of the effective date of such suspension or termination. If a Project is suspended or terminated pursuant to this section, LACMTA will not reimburse GRANTEE any costs incurred after that suspension or termination date, except those costs necessary to: (i) to return any facilities modified by the Project construction to a safe and operable state; and (ii) suspend or terminate the construction contractor’s control over the Project. LACMTA’s share of these costs will be consistent with the established funding percentages outlined in this FA.
3. INVOICE BY GRANTEE
Unless otherwise stated in this FA, the Quarterly Progress/ Expenditure Report, with supporting documentation of expenses, Project progress and other documents as required, which has been pre-approved by LACMTA, all as described in Part II, Section 6.1 of this FA, shall satisfy LACMTA invoicing requirements. Grantee shall only submit for payment the LACMTA pre-approved Quarterly Progress/ Expenditure Report Packets to the LACMTA Project Manager at the email address shown in Part I and to LACMTA Accounts Payable Department as shown below.
Submit invoice with supporting documentation to:
[email protected] (preferable)
or
mail to:
Los Angeles County Metropolitan Transportation Authority Accounts Payable
P. O. Box 512296
Los Angeles, CA 90051-0296
All invoice material must contain the following information:
Re: LACMTA Project ID# MR524.03 and FA# FA9200000000MR52403 Annie Chou; Mail Stop 99-23-3
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 8 Measure R Funding Agreement – Highways – General
4. USE OF FUNDS
4.1 GRANTEE shall utilize the Funds to complete the Project as described in the Scope of Work and in accordance with the Reporting and Expenditure Guidelines and the specifications for use for the transportation purposes described in the Ordinance.
4.2 Attachment C shall constitute the agreed upon Scope of Work between LACMTA and GRANTEE for the Project. The Funds, as granted under this FA, can only be used towards the completion of the Scope of Work detailed in Attachment C.
4.3 GRANTEE shall not use the Funds to substitute for any other funds or projects not specified in this FA. Further, GRANTEE shall not use the Funds for any expenses or activities above and beyond the approved Scope of Work (Attachment C) without an amendment to the FA approved and signed by the LACMTA Chief Executive Officer or his Designee. To the extent LACMTA provides GRANTEE with bond or commercial paper proceeds, such Funds may not be used to reimburse for any costs that jeopardize the tax exempt nature of such financings as reasonably determined by LACMTA and its bond counsel.
4.4 GRANTEE must use the Funds in the most cost-effective manner. If GRANTEE intends to use a consultant or contractor to implement all or part of the Project, LACMTA requires that such activities be procured in accordance with GRANTEE’s contracting procedures and consistent with State law as appropriate. GRANTEE will also use the Funds in the most cost-effective manner when the Funds are used to pay “in-house” staff time. This effective use of funds provision will be verified by LACMTA through on- going Project monitoring and through any LACMTA interim and final audits.
4.5 GRANTEE’S employee, officers, councilmembers, board member, agents, or consultants (a “GRANTEE Party”) are prohibited from participating in the selection, award, or administration of a third-party contract or sub-agreement supported by the Funds if a real or apparent conflict of interest would be involved. A conflict of interest would include, without limitation, an organizational conflict of interest or when any of the following parties has a financial or other interest in any entity selected for award: (a) a GRANTEE Party (b) any member of a GRANTEE Party’s immediate family, (c) a partner of a GRANTEE Party; (d) any organization that employs or intends to employ any of the above. This conflict of interest provision will be verified by LACMTA through on-going Project monitoring and through any
LACMTA interim and final audits.
4.6 If a facility, equipment (such as computer hardware or software), vehicle or property, purchased or leased using the Funds, ceases to be used for the proper use as originally stated in the Scope of Work, or the Project is discontinued, any Funds expended for that purpose must be returned to LACMTA as follows: GRANTEE shall be required to repay the Funds in proportion to the useful life remaining and in an equal proportion of the grant to GRANTEE Funding Commitment ratio.
4.7 If the Project requires the implementation of an Intelligent Transportation Systems (“ITS”) project, GRANTEE shall ensure the Project is consistent with the Regional ITS Architecture. Attachment G the Los Angeles County Regional ITS Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 9 Measure R Funding Agreement – Highways – General
Architecture (CONNECT-IT) Consistency Self-Certification Form, must be completed and signed for planned ITS projects and/or ITS projects that use local, state, or federal funds programmed or administered through LACMTA. Refer to www.laconnect-it.com to find information about the CONNECT-IT Service Packages.
4.8 If any parking facilities are designed and/or constructed using the Funds, GRANTEE shall coordinate with LACMTA parking program staff (see www.metro.net for staff listing) in the planning, design and management of the facility and shall ensure that its implementation is consistent with the LACMTA adopted parking policy.
For the parking policy, see
http://media.metro.net/projects_studies/call_projects/images/09%20Appendix%20D%20Pa rking%20Policy.pdf
5. REIMBURSEMENT OF FUNDS
Funds will be released on a reimbursement basis in accordance with invoices submitted in support of the Quarterly Progress/Expenditure Reports. LACMTA will make all disbursements electronically unless an exception is requested in writing. Reimbursements via Automated Clearing House (ACH) will be made at no cost to GRANTEE. GRANTEE must register in LACMTA’s iSupplier portal and submit an application before grant payments can be made. The link to the portal can be found at http://media.metro.net/uploads/EBB/Vendor Portal Registration.pdf. GRANTEE must provide detailed supporting documentation with its Quarterly Progress/Expenditure Reports.
GRANTEE Funding Commitment, if any, must be spent in direct proportion to the Funds with each quarter’s payment.
6. REPORTING AND AUDIT REQUIREMENTS/PAYMENT ADJUSTMENTS
6.1 GRANTEE shall submit the draft of Quarterly Progress/Expenditure Report (Attachment D-2) within sixty (60) days after the close of each quarter on the last day of the months November, February, May and August to the LACMTA Project Manager for review and pre-approval of the applicable report. LACMTA Project Manager shall review and respond in writing to the draft Quarterly Progress/Expenditure Reports within thirty (30) calendar days from receipt. Grantee shall submit the LACMTA pre-approved Quarterly Progress/Expenditure Report no later than five (5) days after receipt of LACMTA’s written approval. Should GRANTEE fail to submit either the draft or pre-approved reports within five (5) days of the due date and/or submit incomplete reports, LACMTA will not reimburse GRANTEE until the completed required reports are received, reviewed, and approved. The Quarterly Progress/Expenditure Reports shall include all appropriate documentation (such as contractor invoices, timesheets, receipts, etc.), and any changes to interim milestone dates that do not impact the final milestone date. All supporting documents must include a clear justification and explanation of their relevance to the Project. If no activity has occurred during a particular quarter, GRANTEE will still be required to submit the Quarterly Progress/Expenditure Reports indicating no dollars were expended that quarter. If a request for reimbursement exceeds $500,000 in a single month, then GRANTEE can submit such an invoice once per month with supporting documentation. Expenses that are not invoiced to LACMTA Accounts Payable Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 10 Measure R Funding Agreement – Highways – General
within ninety (90) days after the lapsing date specified in Part II, Section 9.1 below are not eligible for reimbursement.
6.2 GRANTEE shall submit the Project expenditure estimates for the subsequent fiscal year by February of each year. LACMTA will use the estimates to determine the Project budget for the upcoming fiscal year.
6.3 LACMTA, and/or its designee, shall have the right to conduct audits of the Project as deemed appropriate, such as financial and compliance audits, interim audits, pre- award audits, performance audits and final audits. LACMTA will commence a final audit within six months of receipt of acceptable final invoice, provided the Project is ready for final audit (meaning all costs and charges have been paid by GRANTEE and invoiced to LACMTA, and such costs, charges and invoices are properly documented and summarized in the accounting records to enable an audit without further explanation or summarization including actual indirect rates for the period covered by the FA period under review).
GRANTEE agrees to establish and maintain proper accounting procedures and cash management records and documents in accordance with Generally Accepted Accounting Principles (GAAP). GRANTEE shall reimburse LACMTA for any expenditure not in compliance with the Scope of Work and/or not in compliance with other terms and conditions of this FA. The allowability of costs for GRANTEE’s own expenditures submitted to LACMTA for this Project shall be in compliance with Office of Management and Budget (OMB) Circular A-87. The allowability of costs for GRANTEE’s contractors, consultants and suppliers expenditures submitted to LACMTA through GRANTEE’s Quarterly Progress/Expenditures shall be in compliance with OMB Circular A-87 or Federal Acquisition Regulation (FAR) Subpart 31 and 2 CFR Subtitle A, Chapter II, Part 225 (whichever is applicable). Findings of the LACMTA audit are final. When LACMTA audit findings require GRANTEE to return monies to LACMTA, GRANTEE agrees to return the monies within thirty (30) days after the final audit is sent to GRANTEE.
6.4 GRANTEE’s records shall include, without limitation, accounting records, written policies and procedures, contract files, original estimates, correspondence, change order files (including documentation covering negotiated settlements), invoices, and any other supporting evidence deemed necessary by LACMTA to substantiate charges related to the Project (all collectively referred to as “records”). Such records shall be open to inspection and subject to audit and reproduction by LACMTA auditors or authorized representatives to the extent deemed necessary by LACMTA to adequately permit evaluation of expended costs. Such records subject to audit shall also include, without limitation, those records deemed necessary by LACMTA to evaluate and verify, direct and indirect costs, (including overhead allocations) as they may apply to costs associated with the Project.
These records must be retained by GRANTEE for three years following final payment under this Agreement. Payment of retention amounts shall not occur until after the LACMTA’s final audit is completed.
6.5 GRANTEE shall cause all contractors to comply with the requirements of Part II, Section 5, paragraphs 6.2 and 6.3 above. GRANTEE shall cause all contractors to cooperate fully in furnishing or in making available to LACMTA all records deemed necessary by LACMTA auditors or authorized representatives related to the Project.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 11 Measure R Funding Agreement – Highways – General
6.6 LACMTA or any of its duly authorized representatives, upon reasonable written notice, shall be afforded access to all GRANTEE’S records and its contractors related to the Project, and shall be allowed to interview any employee of GRANTEE and its contractors through final payment to the extent reasonably practicable.
6.7 LACMTA or any of its duly authorized representatives, upon reasonable written notice, shall have access to the offices of GRANTEE and its contractors, shall have access to all necessary records, including reproduction, at no charge to LACMTA, and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the terms and conditions of this FA.
6.8 When business travel associated with the Project requires use of a vehicle, the mileage incurred shall be reimbursed at the mileage rates set by the Internal Revenue Service, as indicated in the United States General Services Administration Federal Travel Regulation, Privately Owned Vehicle Reimbursement Rates.
6.9 GRANTEE shall be responsible for ensuring all contractors/ subcontractors for the Project comply with the terms of the Ordinance. GRANTEE shall cooperate with LACMTA Management Audit Services Department such that LACMTA can meet its obligations under the Ordinance.
6.10 GRANTEE shall certify each invoice by reviewing all subcontractor costs and maintaining internal control to ensure that all expenditures are allocable, allowable and reasonable and in accordance with OMB A-87 or FAR subpart 31 and 2 CFR Subtitle A, Chapter II, part 225, (whichever is applicable) and the terms and conditions of this FA.
6.11 GRANTEE shall also certify final costs of the Project to ensure all costs are in compliance with OMB A-87 or FAR subpart 31 and 2 CFR Subtitle A, Chapter II, part 225, (whichever is applicable) and the terms and conditions of this FA.
6.12 In addition to LACMTA’s other remedies as provided in this FA, LACMTA may withhold the Funds if the LACMTA audit has determined that GRANTEE failed to comply with the Scope of Work (such as misusing Funds or failure to return Funds owed to LACMTA in accordance with LACMTA audit findings) and /or is severely out of compliance with other terms and conditions as defined by this FA, including the access to records provisions of Part II, Section 6.
7. GRANT
This is a one-time only grant of the Measure R Funds subject to the terms and conditions agreed to herein. This grant does not imply nor obligate any future funding commitment on the part of LACMTA.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 12 Measure R Funding Agreement – Highways – General
8. SOURCES AND DISPOSITION OF FUNDS
8.1 The obligation for LACMTA to grant the Funds for the Project is subject to sufficient Funds being made available for the Project by the LACMTA Board of Directors. If such Funds are not made available as anticipated from Measure R Program revenues, LACMTA will have the right to adjust the cash flow accordingly until such funds become available. LACMTA shall have no obligation to provide any other funds for the Project, unless otherwise agreed to in writing by LACMTA.
8.2 GRANTEE shall fully fund and contribute the GRANTEE Funding Commitment, if any is identified in the Project Funding (Attachment A), towards the cost of the Project. If the Funds identified in Attachment A are insufficient to complete the Project, GRANTEE agrees to secure and provide such additional non-LACMTA programmed funds necessary to complete the Project.
8.3 GRANTEE shall be responsible for any and all cost overruns for the Project pursuant to Section 8.2.
8.4 GRANTEE shall be eligible for the Funds up to the grant amount specified in Part I, Section 2 of this FA subject to the terms and conditions contained herein.
Any Funds expended by GRANTEE prior to the Effective Date of this FA shall not be reimbursed nor shall they be credited toward the GRANTEE Funding Commitment requirement, without the prior written consent of LACMTA. GRANTEE Funding Commitment dollars expended prior to the year the Funds are awarded shall be spent at GRANTEE’s own risk, or as delineated in a Letter of No Prejudice executed by the prospective GRANTEE and LACMTA.
8.5 If GRANTEE receives outside funding for the Project in addition to the Funds identified in the Project Funding and the Expenditure Plan at the time this grant was awarded, this FA shall be amended to reflect such additional funding. If, at the time of final invoice or voucher, funding for the Project (including the Funds, GRANTEE Funding Commitment, and any additional funding) exceeds the actual Project costs, then the cost savings shall be applied in the same proportion as the sources of funds from each party to this FA as specified in the Project Funding and both the Funds and GRANTEE Funding Commitment required for the Project shall be reduced accordingly. LACMTA shall have the right to use any cost savings associated with the Funds at its sole discretion, including, without limitation, programming the unused Funds to another project or to another grantee. If, at the time of final voucher, it is determined that GRANTEE has received Funds in excess of what GRANTEE should have received for the Project, GRANTEE shall return such overage to LACMTA within 30 days from final voucher.
9. TIMELY USE OF FUNDS / REPROGRAMMING OF FUNDS
9.1 GRANTEE must demonstrate timely use of the Funds by:
(i) Executing this FA within ninety (90) days of receiving formal transmittal of the FA from LACMTA, or by December 31 of the Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 13 Measure R Funding Agreement – Highways – General
first Fiscal Year in which the Funds are programmed, whichever date is later; and
(ii) Executing Contracts for Construction or Capital purchase within twelve (12) months from the date of completion of design; and (iii) Delivering Work in accordance with schedule; changes to the schedule will require an Amendment to Attachment C to reflect updated milestone dates. Meeting the Project milestone due dates as agreed upon by the LACMTA and GRANTEE in
Attachment C (Scope of Work) of this FA; and
(iv) Submitting the Quarterly Progress/Expenditure Reports as described in Part II, Section 6.1 of this FA; and
(v) Expending the Funds granted under this FA for allowable costs within three years or 36 months July 1 of the Fiscal Year in which the Funds are programmed, unless otherwise stated in this FA.
All Funds programmed for FY 2026-27 are subject to lapse by June 30, 2029. All Funds programmed for FY 2027-28 are subject to lapse by June 30, 2030. All Funds programmed for FY 2028-29 are subject to lapse by June 30, 2031.
9.2 In the event that the timely use of the Funds is not demonstrated as described in Part II, Section 9.1 of this FA, the Project will be reevaluated by LACMTA and the Funds may be reprogrammed to another project by the LACMTA Board of Directors in accordance with the Ordinance. In the event that all the Funds are reprogrammed, this FA shall automatically terminate.
10. DEFAULT
A Default under this FA is defined as any one or more of the following: (i) GRANTEE fails to comply with the terms and conditions contained herein; and/or (ii) GRANTEE fails to perform satisfactorily or make material changes, as determined by LACMTA at its sole discretion, to the Expenditure Plan, the Scope of Work, or the Project Funding without LACMTA’s prior written consent or approval as provided herein.
11. REMEDIES
11.1 In the event of a Default by GRANTEE, LACMTA shall provide written notice of such Default to GRANTEE with a 30-day period to cure the Default. In the event GRANTEE fails to cure the Default, or commit to cure the Default and commence the same within such 30-day period to the satisfaction of LACMTA, LACMTA shall have the following remedies: (i) LACMTA may terminate this FA; (ii) LACMTA may make no further disbursements of Funds to GRANTEE; and/or (iii) LACMTA may recover from GRANTEE any Funds disbursed to GRANTEE as allowed by law or in equity.
11.2 Effective upon receipt of written notice of termination from LACMTA, GRANTEE shall not undertake any new work or obligation with respect to this FA unless so directed by LACMTA in writing. Any Funds expended after termination shall be the sole responsibility of GRANTEE.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 14 Measure R Funding Agreement – Highways – General
11.3 The remedies described herein are non-exclusive. LACMTA shall have the right to enforce any and all rights and remedies herein or which may be now or hereafter available at law or in equity.
12. COMMUNICATIONS
12.1 GRANTEE shall ensure that all Communication Materials contain recognition of LACMTA’s contribution to the Project as more particularly set forth in “Funding Recipient Communications Guidelines” available online at http://metro.net/partners-civic. The Funding Recipient Communications Guidelines may be changed from time to time during the course of this Agreement. GRANTEE shall be responsible for complying with the latest Funding Recipient Communications Guidelines during the term of this Agreement, unless otherwise specifically authorized in writing by the LACMTA Chief Communications Officer.
12.2 For purposes of this Agreement, “Communications Materials” include, but are not limited to, press events, public and external newsletters, printed materials, advertising, websites radio and public service announcements, electronic media, and construction site signage. A more detailed definition of “Communications Materials” is found in the Funding Recipient Communications Guidelines.
12.3 The Metro logo is a trademarked item that shall be reproduced and displayed in accordance with specific graphic guidelines. The preferred logo lock-up for Funding Recipients to use is included in the Funding Recipient Communications Guidelines.
12.4 GRANTEE
shall ensure that any subcontractor, including, but not limited to, public relations, public affairs, and/or marketing firms hired to produce Project Communications Materials for public and external purposes will comply with the requirements contained in this Section.
12.5 The LACMTA Project Manager shall be responsible for monitoring GRANTEE’s compliance with the terms and conditions of this Section. GRANTEE’s failure to comply with the terms of this Section shall be deemed a default hereunder and LACMTA shall have all rights and remedies set forth herein.
13. OTHER TERMS AND CONDITIONS
13.1 This FA, along with its Attachments, constitutes the entire understanding between the parties, with respect to the subject matter herein. The FA shall not be amended, nor any provisions or breach hereof waived, except in writing signed by the parties who agreed to the original FA or the same level of authority. Adoption of revisions or supplements to the Guidelines shall cause such revisions or supplements to become incorporated automatically into this Agreement as though fully set forth herein.
13.2 GRANTEE is obligated to continue using the Project dedicated to the public transportation purposes for which the Project was initially approved. The Project right- Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 15 Measure R Funding Agreement – Highways – General
of-way, the Project facilities constructed or reconstructed on the Project site, and/or Project property purchased, excluding construction easements and excess property (whose proportionate proceeds shall be distributed in an equal proportion of the grant to GRANTEE Funding Commitment ratio), shall remain dedicated to public transportation use in the same proportion and scope and to the same extent as described in this FA. Equipment acquired as part of the Project, including office equipment, vehicles, shall be dedicated to that use for their full economic life cycle, including any extensions of that life cycle achieved by reconstruction, rehabilitation, or enhancements.
13.3 In the event that there is any legal court (e.g., Superior Court of the State of California, County of Los Angeles, or the U.S. District Court for the Central District of California) proceeding between the parties to enforce or interpret this FA, to protect or establish any rights or remedies hereunder, the prevailing party shall be entitled to its costs and expenses, including reasonable attorney’s fees.
13.4 Neither LACMTA nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or committed to be done by GRANTEE under or in connection with any work performed by and or service provided by GRANTEE, its officers, agents, employees, contractors and subcontractors under this FA. GRANTEE shall fully indemnify, defend and hold LACMTA and its subsidiaries, and its officers, agents and employees harmless from and against any liability and expenses, including without limitation, defense costs, any costs or liability on account of bodily injury, death or personal injury of any person or for damage to or loss of risk of property, any environmental obligation, any legal fees and any claims for damages of any nature whatsoever arising out of the Project, including without limitation: (i) use of the Funds by GRANTEE, or its officers, agents, employees, contractors or subcontractors; (ii) breach of GRANTEE’s obligations under this FA; or (iii) any act or omission of GRANTEE, or its officers, agents, employees, contractors or subcontractors in the performance of the work or the provision of the services, in connection with the Project including, without limitation, the Scope of Work, described in this FA.
13.5 Neither party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of any such obligation is prevented or delayed by unforeseen causes including acts of God, acts of a public enemy, and government acts beyond the control and without fault or negligence of the affected party. Each party hereto shall give notice promptly to the other of the nature and extent of any such circumstances claimed to delay, hinder, or prevent performance of any obligations under this FA.
13.6 GRANTEE shall comply with and ensure that work performed under this FA is done in compliance with Generally Accepted Accounting Principles (GAAP), all applicable provisions of federal, state, and local laws, statutes, ordinances, rules, regulations, and procedural requirements including Federal Acquisition Regulations (FAR), and the applicable requirements and regulations of LACMTA. GRANTEE acknowledges responsibility for obtaining copies of and complying with the terms of the most recent federal, state, or local laws and regulations, and LACMTA requirements including any amendments thereto.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.01.2021 16 Measure R Funding Agreement – Highways – General
13.7 GRANTEE agrees that the applicable requirements of this FA shall be included in every contract entered into by GRANTEE or its contractors relating to work performed under this FA and LACMTA shall have the right to review and audit such contracts.
13.8 GRANTEE shall not assign this FA, or any part thereof, without prior approval of the LACMTA Chief Executive Officer or his designee. Any assignment by GRANTEE without said prior consent by LACMTA shall be void and unenforceable.
13.9 This FA shall be governed by California law. If any provision of this FA is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
13.10 The covenants and agreements of this FA shall inure to the benefit of, and shall be binding upon, each of the parties and their respective successors and assigns.
13.11 GRANTEE will advise LACMTA prior to any key Project staffing changes.
Notice will be given to the parties at the address specified in Part I, unless otherwise notified in writing of change of address.
13.12 GRANTEE, in the performance of the work described in this FA, is not a contractor nor an agent or employee of LACMTA. GRANTEE attests to no organizational or personal conflicts of interest and agrees to notify LACMTA immediately in the event that a conflict, or the appearance thereof, arises. GRANTEE shall not represent itself as an agent or employee of LACMTA and shall have no powers to bind LACMTA in contract or otherwise.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP # N/A
SOURCES OF FUNDS Prior Years FY2024-25 FY2025-26 FY2026-27 FY2027-28 FY2028-29 Total Budget
% of Budget
LACMTA PROGRAMMED FUNDING
MEASURE R FUNDS -$
LACMTA PROGRAMMED FUNDS BY
YEAR SUBTOTAL -$ -$ -$ 700,000$ 6,500,000$ 5,175,000$ 12,375,000$ 100% OTHER SOURCES OF FUNDING:
LOCAL: PC 40% MOSIP -$ -$ 0% STATE: CEC Grant -$ -$ 0% FEDERAL: 5307 -$ -$ 0% PRIVATE OR OTHER: -$ 0% OTHER FUNDING SUBTOTAL -$ -$ -$ -$ -$ -$ -$ 0% TOTAL PROJECT FUNDS -$ -$ -$ 700,000$ 6,500,000$ 5,175,000$ 12,375,000$ 100%
ATTACHMENT A - PROJECT FUNDING
Measure R Program - Funding Agreement Projects - FA# 9200000000MR52403 Project Title: GTRANS: PURCHASE OF UP TO 15 EXPANSION BUSES Project#: MR524.03
PROGRAMMED BUDGET - SOURCES OF FUNDS
Rev. 05.03.19 FA Measure R Hwys Gen Attachment A Project Funds Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: SOUTH BAY
Project#: MR524.03
FA# 9200000000MR52403
Rev: 11-1-14 1 FA Measure R Hwys Sub Attachment B
Measure R Expenditure Guidelines
ATTACHMENT B
MEASURE R EXPENDITURE PLAN GUIDELINES
PROJECT DEVELOPMENT AND RIGHT OF WAY
State Law Requires All Measure R Project and Program Sponsors to Submit an Expenditure Plan
To be eligible to receive Measure R revenues, an agency sponsoring a capital project or program must by state law (AB 2321) submit an expenditure plan that is acceptable to the Los Angeles County Metropolitan Transportation Authority (LACMTA). Pursuant to this law, LACMTA cannot release Measure R funds to capital project or program sponsors until an expenditure plan containing the following elements is submitted, reviewed and deemed satisfactory by LACMTA. LACMTA staff will request that an expenditure plan be submitted before making a recommendation to the LACMTA Board to program funds to that project:
o The estimated total cost for each project and program and/or each project or program activity;
o Funds other than Measure R that the project or program sponsor anticipates will be expended on the projects and programs and/or each project or program activity; o The schedule during which the project sponsor anticipates funds will be available for each project and program and/or each project or program activity; and, o The expected completion dates for each project and program and/or project or program activity.
Each of the above elements must be provided in enough detail to determine consistency with Measure R, the Long Range Transportation Plan for Los Angeles County, and the Los Angeles County Transportation Improvement Program (also a statutorily mandated function), as follows:
o Project or program scope of work, including sufficient information to determine funding eligibility, including, but not limited to, the anticipated proportional use of current rail rights-of-way, state highways, and below-ground subways versus any other rights-of-way or above-ground work;
o A current-year cost estimate breakdown of the major sub-elements of the project such as overhead, environmental and permit work, design and engineering, right-of-way, construction/installation (including maintenance facilities, rail yard, equipment and other major components), construction/installation support, interest costs, rolling stock, and other supporting components;
o Any extraordinary project cost escalation issues, such as extraordinary commodity, right- of-way, surety, energy costs, etc.;
o A specific and accurate description of the source, commitment, and anticipated annual availability of any federal, state, local, or private funding identified for the project if applicable including a 3% local funding contribution to rail projects if indicated in Measure R and necessary to meet project expenses, and if the source funds are in current or year-of-expenditure dollars;
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: SOUTH BAY
Project#: MR524.03
FA# 9200000000MR52403
Rev: 11-1-14 2 FA Measure R Hwys Sub Attachment B
Measure R Expenditure Guidelines
o An annual schedule, in current dollars, of anticipated costs by the cost estimate categories described above; and;
o The expected completion by month and year of project or program completion.
Below is an excerpt of AB 2321 (2008, Feuer), the state legislation that requires the expenditure plan.
What AB 2321 (2008, Feuer) Says About the Expenditure Plan:
Section b (3) B
(f) Prior to submitting the ordinance to the voters, the MTA shall adopt an expenditure plan for the net revenues derived from the tax. The expenditure plan shall include, in addition to other projects and programs identified by the MTA, the specified projects and programs listed in paragraph (3) of subdivision (b), the estimated total cost for each project and program, funds other than the tax revenues that the MTA anticipates will be expended on the projects and programs, and the schedule during which the MTA anticipates funds will be available for each project and program. The MTA shall also identify in its expenditure plan the expected completion dates for each project described in subparagraph (A) of paragraph (3) of subdivision (b). To be eligible to receive revenues derived from the tax, an agency sponsoring a capital project or capital program shall submit to te MTA an expenditure plan for its project or program containing the same elements as the expenditure plan that MTA is required by this subdivision to prepare.
(k) No later than 365 days prior to the adoption of an amendment described in paragraph (1) to an expenditure plan adopted pursuant to subdivision (f), including, but not limited to, the expenditure plan adopted by the MTA board as "Attachment A" in Ordinance #08-01 adopted by the board on July 24, 2008, and in addition to any other notice requirements in the proposing ordinance, the board shall notify the Members of the Legislature representing the County of Los Angeles of all of the following:
(1) A description of the proposed amendments to the adopted expenditure plan that would do any of the following:
(A) Affect the amount of net revenues derived from the tax imposed pursuant to this act that is proposed to be expended on a capital project or projects identified in the adopted expenditure plan.
(B) Affect the schedule for the availability of funds proposed to be expended on a capital project or projects identified in the adopted expenditure plan. (C) Affect the schedule for the estimated or expected completion date of a capital project or projects identified in the adopted expenditure plan.
(2) The reason for the proposed amendment.
(3) The estimated impact the proposed amendment will have on the schedule, cost, scope, or timely availability of funding for the capital project or projects contained in the adopted expenditure plan.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 SOURCES OF FUNDS FY 2025-26
Qtr 1
FY 2025-26
Qtr 2
FY 2025-26
Qtr 3
FY 2025-26
Qtr 4
FY 2026-27
Qtr 1
FY 2026-27
Qtr 2
FY 2026-27
Qtr 3
FY 2026-27
Qtr 4
TOTAL
BUDGET
LACMTA PROGRAMMED FUNDS:
MEASURE R FUNDS:
PAED $0
PS&E $100,000 $100,000 $200,000
RW Support $0
Const. Support $50,000 $50,000 $100,000
RW $0
Construction $100,000 $150,000 $150,000 $400,000
Total MEASURE R $0 $0 $0 $0 $100,000 $200,000 $200,000 $200,000 $700,000 PROP C 25%
PAED $0
PS&E $0
RW Support $0
Const. Support $0
RW $0
Construction $0
Total PROP C 25% $0 $0 $0 $0 $0 $0 $0 $0 $0
SUM PROG LACMTA FUNDS: $0 $0 $0 $0 $100,000 $200,000 $200,000 $200,000 $700,000 OTHER NON LACMTA FUNDING:
LOCAL:
PAED $0
PS&E $0
RW Support $0
Const. Support $0
RW $0
Construction $0
Total LOCAL $0 $0 $0 $0 $0 $0 $0 $0 $0
STATE:
PAED $0
PS&E $0
RW Support $0
Const. Support $0
RW $0
Construction $0
Total STATE $0 $0 $0 $0 $0 $0 $0 $0 $0
FEDERAL:
PAED $0
PS&E $0
RW Support $0
Const. Support $0
RW $0
Construction $0
Total FEDERAL $0 $0 $0 $0 $0 $0 $0 $0 $0
PRIVATE: ?
PAED $0
PS&E $0
RW Support $0
Const. Support $0
RW $0
Construction $0
Total PRIVATE $0 $0 $0 $0 $0 $0 $0 $0 $0
SUM NON-LACMTA FUNDS : $0 $0 $0 $0 $0 $0 $0 $0 $0
PROJECT FUNDING
FY25-26 and FY26-27 $0 $0 $0 $0 $100,000 $200,000 $200,000 $200,000 $700,000 ATTACHMENT B-1 - EXPENDITURE PLAN COST & CASH FLOW BUDGET Measure R Program - Funding Agreement Projects - FA# 9200000000MR52403 Project Title: Gtrans: Purchase up to 15 Expansion Buses Project#: MR524.03
PROGRAMMED SOURCES OF FUNDS
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 ATTACHMENT B-1 - EXPENDITURE PLAN COST & CASH FLOW BUDGET Measure R Program - Funding Agreement Projects - FA# 9200000000MR52403 Project Title: Gtrans: Purchase up to 15 Expansion Buses Project#: MR524.03
PROGRAMMED SOURCES OF FUNDS
SOURCES OF FUNDS FY 2027-28
Qtr 1
FY 2027-28
Qtr 2
FY 2027-28
Qtr 3
FY 2027-28
Qtr 4
FY 2028-29
Qtr 1
FY 2028-29
Qtr 2
FY 2028-29
Qtr 3
FY 2028-29
Qtr 4
TOTAL
BUDGET
LACMTA PROGRAMMED FUNDS:
MEASURE R FUNDS:
PAED $0
PS&E $0
RW Support $0
Const. Support $50,000 $50,000 $100,000
RW $0
Construction $150,000 $250,000 $500,000 $5,500,000 $1,500,000 $1,250,000 $1,250,000 $1,175,000 $11,575,000 Total MEASURE R $200,000 $300,000 $500,000 $5,500,000 $1,500,000 $1,250,000 $1,250,000 $1,175,000 $11,675,000 PROP C 25%
PAED $0
PS&E $0
RW Support $0
Const. Support $0
RW $0
Construction $0
Total PROP C 25% $0 $0 $0 $0 $0 $0 $0 $0 $0
SUM PROG LACMTA FUNDS: $200,000 $300,000 $500,000 $5,500,000 $1,500,000 $1,250,000 $1,250,000 $1,175,000 $11,675,000 OTHER NON LACMTA FUNDING:
LOCAL: ?
PAED $0
PS&E $0
RW Support $0
Const. Support $0
RW $0
Construction $0
Total LOCAL $0 $0 $0 $0 $0 $0 $0 $0 $0
STATE: ?
PAED $0
PS&E $0
RW Support $0
Const. Support $0
RW $0
Construction $0
Total STATE $0 $0 $0 $0 $0 $0 $0 $0 $0
FEDERAL: ?
PAED $0
PS&E $0
RW Support $0
Const. Support $0
RW $0
Construction $0
Total FEDERAL $0 $0 $0 $0 $0 $0 $0 $0 $0
PRIVATE: ?
PAED $0
PS&E $0
RW Support $0
Const. Support $0
RW $0
Construction $0
Total PRIVATE $0 $0 $0 $0 $0 $0 $0 $0 $0
SUM NON-LACMTA FUNDS : $0 $0 $0 $0 $0 $0 $0 $0 $0
PROJECT FUNDING
FY27-28 and FY28-29 $200,000 $300,000 $500,000 $5,500,000 $1,500,000 $1,250,000 $1,250,000 $1,175,000 $11,675,000
SUMMARY OF ALL FUNDS
PAED $0 $0 $0 $0 $0 $0 $0 $0 $0
PS&E $0 $0 $0 $0 $100,000 $100,000 $0 $0 $200,000
RW Support $0 $0 $0 $0 $0 $0 $0 $0 $0
Const. Support $50,000 $50,000 $0 $0 $0 $0 $50,000 $50,000 $200,000 RW $0 $0 $0 $0 $0 $0 $0 $0 $0
Construction $150,000 $250,000 $500,000 $5,500,000 $1,500,000 $1,350,000 $1,400,000 $1,325,000 $11,975,000 TOTAL MILESTONES $200,000 $300,000 $500,000 $5,500,000 $1,600,000 $1,450,000 $1,450,000 $1,375,000 $12,375,000 SUM PROG LACMTA FUNDS $200,000 $300,000 $500,000 $5,500,000 $1,600,000 $1,450,000 $1,450,000 $1,375,000 $12,375,000 SUM NON-LACMTA FUNDS $0 $0 $0 $0 $0 $0 $0 $0 $0
TOTAL PROJECT FUNDING $200,000 $300,000 $500,000 $5,500,000 $1,600,000 $1,450,000 $1,450,000 $1,375,000 $12,375,000 Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 11.25.26 1 FA Measure R Hwys Gen Attachment C Scope of Work
ATTACHMENT C
SCOPE OF WORK
PROJECT TITLE:
Gtrans: Purchase up to 15 Expansion Buses
PROJECT LOCATION:
The project is located at 13999 S. Western Avenue, Gardena, CA 90249 in the City of Gardena, in the South Bay area.
PROJECT LIMITS:
The project limits are Western Avenue and 139th Street
NEXUS TO HIGHWAY OPERATION, DEFINITION/PROJECT PURPOSE:
The purpose of this project is to enable the City of Gardena’s GTrans to purchase expansion/expanded capacity fixed route vehicles for use in the deployment of additional service within the GTrans service area, over the next 10 years. In addition, the funds would be used to implement associated infrastructure upgrades to support the deployment of these vehicles.
PROJECT BACKGROUND:
GTrans completed a Line by Line Analysis in 2018 which provided comprehensive recommendations for service expansion. GTrans requested the consultant to examine the feasibility of service expansion opportunities for GTrans, based on a number of significant regional developments within the South Bay region, along with Los Angeles County Metropolitan Transportation Authority’s (Metro) current efforts to reimagine its regional transit network. The recommendations were a result of this analysis, and the consultant provided a preliminary needs assessment for the number of buses that would be required to implement this new service. GTrans has embarked on a new Comprehensive Operational Analysis in 2025 which will provide a new, post-COVID analysis of its service and provide recommendations for improvements and enhanced mobility. The arrival of the 2028 Olympics and regional initiatives to not only to improve transit services that facilitate mobility during the Games, but to implement permanent improvements to the transit network, have further shown a need for GTrans to enhance service with additional vehicles and their associated infrastructure. Some of the service expansion recommendations may include:
• Coordination with LA Metro resulting from its NextGen Bus Study to implement service along specific corridors, such as Wilmington, Vermont, Western and Rosecrans
• Expansion of service into the Inglewood Sports and Entertainment Complex area beyond GTrans’ existing Sunday-only 7X service to SoFi Stadium, such as through expanded days and span of service. This could include regular weekday service to the Inglewood Stadium complex to accommodate travel from Gardena to access the complex for shopping, residential and entertainment purposes.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 11.25.26 2 FA Measure R Hwys Gen Attachment C Scope of Work
To accommodate these, GTrans intends to purchase up to two (two) expanded capacity vehicles (double deck 40-foot buses), up to two (2) expansion fixed route vehicles such as 40-foot buses and up to two (2) expansion trolleys that meet all state and regional air quality and ADA regulations and meet all capacity commitments contained within this application. The exact quantities and type of vehicles are estimates at this time, and may be subject to change depending on cost and availability. Should a material change be needed, and amendment to this scope will be initiated. The buses will be a mixture of Compressed Natural Gas (CNG) and zero emission, in accordance with the City’s adopted 2017 Fleet Replacement Plan.
As a subproject, GTrans intends to use a portion of the funds to upgrade its infrastructure to accommodate the expansion vehicles, particularly as we introduce the taller, double deck buses into the fleet. GTrans is seeking funding from this source because of the lack of funding available for expansion buses in general. In the past, GTrans would apply for funding under Metro’s Call for Projects, which regularly funded expansion projects. Currently, there are very few sources of funding available for bus purchases through the FTA, such as the Bus and Bus Facilities and Low or Now Emission Grant programs. However, GTrans has found that these programs prioritize replacement buses because of a national effort to fund State of Good repair projects.
GTrans formula allocation of Section 5307 funding typically funds preventative maintenance activities, leaving little for other capital projects.
PROJECT BUDGET:
SCOPE:
GTrans intends to purchase up to two (2) expanded capacity vehicles (double deck 40- foot buses), up to two (2) expansion fixed route vehicles such as 40-foot buses and up to two (2) expansion trolleys that meet all state and regional air quality and ADA regulations and meet all capacity commitments contained within this application. As a subproject, GTrans intends to use a portion of the funds to upgrade its infrastructure to accommodate the expansion vehicles, particularly as we introduce the taller, double deck buses into the fleet.
DESIGN:
I. Preliminary Design – Final Work Product
Tasks to be performed may include, but are not limited to, the following:
Funding Source Measure M Total Amount
PS&E $200,000 $200,000
Construction Support $200,000 $200,000
Construction/Vehicles $11,975,000 $11,975,000
Total $ 12,375,000 $ 12,375,000
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 11.25.26 3 FA Measure R Hwys Gen Attachment C Scope of Work
• Incorporate provided layout plans to be incorporated into the final design.
• Identify and coordinate with all utilities in the project area to facilitate the final design of the Project.
• Account for field visits of the project area to identify design issues.
II. Environmental Analysis
Tasks to be performed may include, but are not limited to, the following:
• Coordinate with the City and prepare permit
applications/notifications for the Project as applicable
III. Final Design – Plans, Specifications and Estimates Tasks to be performed may include, but are not limited to, the following:
N/A
IV. Project Management and Preparation of Periodic Updated Schedule, Deliverables and Meetings
Tasks to be performed may include, but are not limited to, the following:
• Meet as needed with the City to accomplish Project tasks as outlined. Develop RFPs and coordinate stakeholders
• Construction support and Labor Compliance activities
• Provide periodic schedule updates on deliverables and meetings as changes to original schedule occur or as needed based on the needs of the project.
CONSTRUCTION:
Grantee expects to provide construction oversight, procure a consultant for construction management, award a contract for construction and to perform the following tasks:
A. Vehicles (V) –
i. Piggyback off an existing contract/direct purchase of expansion vehicles, or direct purchase.
B. Infrastructure (Infstr) –
i. Hire construction firm to dismantle existing bus wash system, install new bus wash and water recycle system, install new plumbing and electrical, and purchase associated equipment to accommodate larger vehicles.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 11.25.26 4 FA Measure R Hwys Gen Attachment C Scope of Work
MILESTONES: The implementation schedule for this project will be as follows.
CONSTRUCTION/VEHICLE MILESTONES: The implementation schedule for this project will be as follows.
START DATE COMPLETION DATE
Solicitation (Bid/Proposal)
Develop Solicitation Package (Infstr) 6_2026 (Infstr) 9_2026 Solicitation Response (Infstr) 9_2026 (Infstr) 12_2026 Evaluations (Infstr) 12_2026 (Infstr) 3_2027
Selection (Infstr) 3_2027 (Infstr) 3_2027
Board Approval Process (Infstr) 3_2027
(V) 3_2026
(Infstr) 5_2027
(V) 3_2026
Contract Award (Infstr) 5_2027
(V) 4_2026
(Infstr) 5_2027
(V) 4_2026
Fully Executed Contract (Infstr) 6_2027
(V) 7_2026
(Infstr) 6_2027
(V) 7_2026
Construction Complete (Infstr) 6_2027 (Infstr) 6_2029
Receive Vehicles (V1) 3_2028
(V2) 12_2028
(V3) 5_2028
(V1) 12_2028
(V2) 6_2029
(V3) 6_2029
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: South Bay
Project#: MR524.03
FA# 9200000000MR52403
Rev: 11.25.26 5 FA Measure R Hwys Gen Attachment C Scope of Work
ATTACHMENT C – Location Map(s)
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: SOUTH BAY
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.18.2020 FA Measure R Hwys Gen Attachment D Project Reporting & Expenditure Guidelines
1 FA ATTACHMENT D
PROJECT REPORTING & EXPENDITURE GUIDELINES
REPORTING PROCEDURES
• Quarterly Progress/Expenditure Report (Attachment D-2) are required for all projects.
The GRANTEE shall be subject to and comply with all applicable requirements of the funding agency regarding project-reporting requirements. In addition, GRANTEE will submit the Quarterly Expenditure Report to the LACMTA, after receiving LACMTA Project Manager’s acceptance of the draft report, at
[email protected] or by mail to Los Angeles Metropolitan Transportation Authority, Accounts Payable, P. O. Box 512296, Los Angeles, California 90051-0296. Please note that letters or other forms of documentation may not be substituted for this form.
• The Quarterly Progress/Expenditure Report covers all activities related to the project and lists all costs incurred. It is essential that GRANTEE provides complete and adequate response to all the questions. The expenses listed must be supported by appropriate documentation with a clear explanation of the purpose and relevance of each expense to the project.
• In cases where there are no activities to report, or problems causing delays, clear explanation, including actions to remedy the situation, must be provided. • GRANTEE is required to track and report on the project schedule. LACMTA will monitor the timely use of funds and delivery of projects. Project delay, if any, must be reported each quarter.
• The draft Quarterly Progress/Expenditure Report is due to the LACMTA as soon as possible after the close of each quarter, but no later than the following dates for each fiscal year:
Quarter
Report Due Date
July –September November 30
October - December February 28
January - March May 31
April - June August 31
LACMTA Project Manager shall review and respond in writing to the draft Quarterly Expenditure Report within thirty (30) calendar days from receipt.
Upon completion of the Project a final report that includes project’s final evaluation must be submitted.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: SOUTH BAY
Project#: MR524.03
FA# 9200000000MR52403
Rev: 06.18.2020 FA Measure R Hwys Gen Attachment D Project Reporting & Expenditure Guidelines
2 EXPENDITURE GUIDELINES
• Any activity or expense charged above and beyond the approved Scope of Work (FA Attachment C) is considered ineligible and will not be reimbursed by the LACMTA unless prior written authorization has been granted by the LACMTA Chief Executive Officer or his/her designee.
• Any expense charged to the grant must be clearly and directly related to the project. • Administrative cost is the ongoing expense incurred by the GRANTEE for the duration of the project and for the direct benefit of the project as specified in the Scope of Work (Attachment C). Examples of administrative costs are personnel, office supplies, and equipment. As a condition for eligibility, all costs must be necessary for maintaining, monitoring, coordinating, reporting and budgeting of the project. Additionally, expenses must be reasonable and appropriate to the activities related to the project. • LACMTA is not responsible for, and will not reimburse any costs incurred by the GRANTEE prior to the Effective Date of the FA, unless written authorization has been granted by the LACMTA Chief Executive Officer or his/her designee.
DEFINITIONS
• Allowable Cost: To be allowable, costs must be reasonable, recognized as ordinary and necessary, consistent with established practices of the organization, and consistent with industry standard of pay for work classification.
• Excessive Cost: Any expense deemed “excessive” by LACMTA staff would be adjusted to reflect a “reasonable and customary” level. For detail definition of “reasonable cost”, please refer to the Federal Register OMB Circulars A-87 Cost Principals for State and Local Governments; and A-122 Cost Principals for Nonprofit Organizations. • Ineligible Expenditures: Any activity or expense charged above and beyond the approved Scope of Work is considered ineligible.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 Invoice #
QUARTERLY EXPENDITURE REPORT Invoice Date
FA#
Quarterly Report #
GRANTEES ARE REQUESTED TO EMAIL THIS REPORT TO
[email protected]
or submit by mail to:
Los Angeles County Metropolitan Transportation Authority Accounts Payable
P. O. Box 512296
Los Angeles, California 90051-0296
Please note that letters or other forms
of documentation may not be substituted for this form. Refer to the Reporting and Expenditure Guidelines (Attachment D) for further information. 0%
12,375,000.00$
-
-$
12,375,000.00
0%
12,375,000.00$
Balance Remaining
% of Project Budget Expended
to Date
Please itemize grant-related charges for this Quarter on Page 5 of this report and include totals in this Section.
Retention Amount
This Quarter Expenditure
Project Quarter Expenditure
Net Invoice Amount (Less
Retention)
LACMTA Measure R Grant $ OTHER FUNDS TOTAL FUNDS
-
-$
-
-
-
Grantee To Complete
LACMTA FA MEASURE R ATTACHMENT D-2
SECTION 1: QUARTERLY EXPENSE REPORT
Total Project Budget
Project-to-Date Expenditure
Funds Expended to Date
(Include this Quarter)
9200000000MR52403
-$
- - -
12,375,000.00
03.01.19 1
Measure M Funding Agreement - MSP
Attachment D-2 Quarterly Expenditure Report
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 PROJECT TITLE:
QUARTERLY REPORT SUBMITTED FOR:
Fiscal Year : 2021-22 2022-23 2023-24
2024-25 2025-26
Quarter : Q1: Jul - Sep Q2: Oct - Dec
Q3: Jan - Mar Q4: Apr - Jun
DATE SUBMITTED:
Measure R Multi-Year Subregioanl Program Type:
Phone Number:
E-mail:
FA #:
LACMTA Project Manager
Transit Administrative Officer
Grantee Contact / Project
Manager
Phone Number:
Mailing Address:
City of GardenaCity / Agency:
310.965.8811
3999 S. Western Ave Gardena CA, 90249
Department:
Measure R South Bay Transit Investment Program (Line 17A) [email protected]
Annie Chou
9200000000MR52403
GTRANS: Purchase of up to 15 Expansion Buses
SECTION 2: GENERAL INFORMATION
Contact Name: Dana E. Pynn
213.418.3453
Job Title:
Name:
E-mail: [email protected]
03.01.19 2
Measure M Funding Agreement - MSP
Attachment D-2 Quarterly Expenditure Report
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 Start Date End Date
Ground Breaking Event
On schedule per original FA schedule Less than 12 months behind original schedule Between 12-24 months behind original schedule More than 24 months behind original schedule Yes No Not Applicable
Yes No Not Applicable
2. PROJECT COMPLETION
Total Project Duration (Months)
Ribbon Cutting Event
Others
Vehicle Purchase
Environmental
1. DELIVERABLES & MILESTONES
O
riginal FA Schedule in Scope of Work
List all deliverables and milestones as stated in the FA, with start and end dates. Calculate the total project duration. DO NOT CHANGE THE ORIGINAL FA MILESTONE START AND END DATES SHOWN IN THE 2 ND AND 3 RD COLUMNS BELOW.
Grantees must make every effort to accurately portray milestone dates in the original FA Scope of Work, since this will provide the basis for calculating any project delay. If milestone start and/or end dates change from those stated in the Original FA Scope of Work, indicate the new dates under Actual Schedule below and re-calculate the project duration. However, this does not change the original milestones in your FA. PER YOUR FA AGREEMENT, ANY
CHANGES TO THE PROJECT SCHEDULE MUST BE FORMALLY SUBMITTED UNDER SEPARATE COVER TO LACMTA FOR WRITTEN CONCURRENCE.
B. Was the project design started within 6 months of the date originally stated in the FA? C. Was a construction contract or capital purchase executed within 9 months after completion of design / specifications? Right-of-Way Acquisition
Start Date
Construction
Design
FA Milestones
SECTION 3 : QUARTERLY PROGRESS REPORT
Actual Schedule
End Date
A. Based on the comparison of the original and actual project milestone schedules above, project is (select only one) :
03.01.19 3
Measure M Funding Agreement - MSP
Attachment D-2 Quarterly Expenditure Report
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018
4. PROJECT DELAY
If project is delayed, describe reasons for delay (this quarter). Pay particular attention to schedule delays. If delay is for the same reason as mentioned in previous quarters, please indicate by writing "Same as Previous Quarter".
5. ACTION ITEMS TO RESOLVE DELAY
List tasks or milestones accomplished and progress made this quarter.
If the project is delayed (as described in #4), include action items that have been, or will be, undertaken to resolve the delay.
3. TASKS / MILESTONES ACCOMPLISHED
03.01.19 4
Measure M Funding Agreement - MSP
Attachment D-2 Quarterly Expenditure Report
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 1 2
3 4
5 6
7 8
9 10
11 12
13 -$
Invoice Payment Information:
LACMTA will make all disbursements electronically unless an exception is requested in writing.
ACH Payments require that you complete an ACH Request Form and fax it to Accounts Payable at 213-922-6107.
ACH Request Forms can be found at www.metro.net/callforprojects.
Written exception requests for Check Payments should be completed and faxed to Accounts Payable at 213-922-6107.
Signature Date
Name Title
Other Funds TotalITEM
TOTAL EXPENSES
CHARGED TO LACMTA
MEASURE R GRANT
-$ -$
SECTION 4. ITEMIZED LISTING OF EXPENSES AND CHARGES THIS QUARTER INVOICE #
All expenses and charges must be itemized and listed below. Each item listed must be verifiable by an invoice and/or other proper documentation. The total amounts shown here must be equal to this quarter’s expenditures listed on page 1 of this report. All expenses and charges must be reflective of the approved budget and rates as shown in the FA Attachment B, Scope of Work. Use additional pages if needed. stated in this report is true and correct.
All receipts, invoices, and time sheets, attached and included with this Expense Report must be listed and shown under the Invoice Number column of the Itemized Listing (above).
Note:
and that to the best of my knowledge and belief the information I certify that I am the responsible Project Manager or fiscal officer and representative of TOTAL
03.01.19 5
Measure M Funding Agreement - MSP
Attachment D-2 Quarterly Expenditure Report
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018 FTIP #: N/A
Subregion ID: SOUTH BAY
Project#: MR524.03
FA# 9200000000MR52403
Rev: 05.15.19 FA Measure R Hwys Gen Attachment E
Bond Requirements
1 ATTACHMENT E
BOND REQUIREMENTS
The provisions of this Attachment E apply only if and to the extent some or all of the Funds are derived from LACMTA issued Bonds or other debt, the interest on which is tax exempt for federal tax purposes (collectively, the "Bonds").
GRANTEE acknowledges that some or all of the Funds may be derived from Bonds, the interest on which is tax-exempt for federal tax purposes or with respect to which LACMTA receives a Federal subsidy for a portion of the interest cost or the investor receives a tax credit. GRANTEE further acknowledges its understanding that the proceeds of the Bonds are subject to certain ongoing limitations relating to the use of the assets financed or provided with such proceeds ("Project Costs" or "Project Components") in the trade or business of any person or entity other than a governmental organization (any such use by a person or entity other than a governmental organization is referred to as "Private Use"). Private Use will include any sale, lease or other arrangement pursuant to which a nongovernmental person or entity receives a legal entitlement of a Project Component and also includes certain agreements pursuant to which a nongovernmental person will operate or manage a Project Component. Each quarterly invoice submitted by GRANTEE to reimburse prior expenditures (or to be received as an advance) shall provide information regarding the specific Project Costs or Project Components to which the Funds which pay that invoice will be allocated and whether there is or might be any Private Use associated with such Project Costs or Project Components. GRANTEE will, for the entire time over which LACMTA's Bonds or other debt remains outstanding, (1) notify and receive LACMTA' s approval prior to entering into any arrangement which will or might result in Private Use and (2) maintain records, including obtaining records from contractors and subcontractors as necessary, of all allocations of Funds to Project Costs or Project Components and any Private Use of such Project Costs or Project Components in sufficient detail to comply and establish compliance with Section 141 of the Internal Revenue Code of 1986, as amended (the "Code"), or similar code provision then in effect and applicable, as determined by the LACMTA in consultation with its bond counsel.
GRANTEE will designate one or more persons that will be responsible for compliance with the obligations described in this Attachment E and notify LACMTA of such designations.
Docusign Envelope ID: BF5B4AE6-A15E-82AD-832B-0ECA7DED8018
CITY OF GARDENA
NOTICE OF CANCELLATION
PLANNING & ENVIRONMENTAL QUALITY COMMISSION
NOTICE IS HEREBY GIVEN that the regular meeting of the
Planning & Environmental Quality Commission scheduled for Tuesday, June 2, 2026, has been cancelled.
NOTICE IS FURTHER GIVEN THAT the next regularly scheduled meeting of the Planning and Environmental Quality Commission will be held on Tuesday, June 16, 2026, at 7:00 p.m. in the Council Chamber at City Hall, 1700 West 162nd Street, Gardena, CA 90247.
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing notice was posted in the City Hall lobby not less than 72 hours prior to the meeting. A copy of said Notice is on file in the Office of the City Clerk.
Dated this 29
th day of May 2026.
/s/ MINA SEMENZA
City Clerk
CITY OF GARDENA
NOTICE OF CANCELLATION
PLANNING & ENVIRONMENTAL QUALITY COMMISSION
NOTICE IS HEREBY GIVEN that the regular meeting of the
Planning & Environmental Quality Commission scheduled for Tuesday, June 16, 2026, has been cancelled.
NOTICE IS FURTHER GIVEN THAT the next regularly scheduled meeting of the Planning and Environmental Quality Commission will be held on Tuesday, July 7, 2026, at 7:00 p.m. in the Council Chamber at City Hall, 1700 West 162nd Street, Gardena, CA 90247.
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing notice was posted in the City Hall lobby not less than 72 hours prior to the meeting. A copy of said Notice is on file in the Office of the City Clerk.
Dated this 12
th day of June 2026.
/s/ MINA SEMENZA
City Clerk
City of Gardena
Gardena City Council
Meeting
AGENDA REPORT
SUMMARY
Agenda Item No. 13A.
Section: DEPARTMENTAL
ITEMS - ADMINISTRATIVE
SERVICES
Meeting Date: June 23,
2026
TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE: PUBLIC HEARING: RESOLUTION NO. 6738, Adopting the City of Gardena's Proposed Budget for Fiscal Year 2026-2027 and Fiscal Year 2027-2028
COUNCIL ACTION REQUIRED:
Staff Recommendation:
Open the public hearing;
Receive testimony from the public, allow three (3) minutes for each speaker; Close the public hearing; and
Adopt Resolution No. 6738
RECOMMENDATION AND STAFF SUMMARY:
Presented for public hearing and City Council consideration is the City of Gardena's Proposed Biennial Budget for Fiscal Year 2026-2027 & Fiscal Year 2027-2028, which includes the General Fund, Enterprise Funds, Special Revenue Funds, Capital Improvement Fund, Debt Service Funds, and Internal Service Funds.
The Proposed Budget is a two-year budget which begins on July 1, 2026, and ends on June 30, 2028. It consists of the Operating Budget and the Capital Improvement Program (CIP) Budget. It incorporates the City Council's priorities by maintaining the long-term financial stability, ensuring public safety, and enhancing quality of life. The Proposed Budget is balanced with General Fund surplus of $93,902 for Fiscal Year 2026-2027 and a surplus of $81,190 for Fiscal Year 2027-2028 in the General Fund.
This Proposed Budget was presented to the City Council on the May 26, 2026 City Council meeting, since then it has been made available for public review on the City's website and in the City Clerk's Office. In addition, staff conducted a Community Budget Forum on June 11, 2026 at the Nakaoka Community Center. The budget public hearing tonight was publicly noticed in the Gardena Valley News on the June 11, 2026 publication.
Staff recommends that the City Council conduct a public hearing and adopt Resolution No. 6738, thereby adopting the Proposed Budget for Fiscal Year 2026-2027 and Fiscal Year 2027-2028. The Adopted Budget will be made available for the public review on the City's website at www.cityofgardena.org/city-budget/.
FISCAL IMPACT/COST:
Fund Types Proposed Revenue Budget Fiscal
Year 2026-2027
Proposed Expenditure Budget
Fiscal Year 2026-2027
General Fund $89,905,980 $89,812,078
Capital Improvement Fund (CIP) $58,544,927 $58,544,927
Special Revenue Funds $54,395,753 $75,934,127
Enterprise Fund - GTrans $40,132,600 $40,132,600
Internal Service Funds $22,951,905 $24,492,641
Debt Service Funds $8,761,820 $9,513,902
Enterprise Fund - Sewer $2,512,500 $7,130,993
Total Proposed Budget Fiscal Year
2026-2027 $277,205,485 $305,561,268
Fund Types Proposed Revenue Budget Fiscal
Year 2027-2028
Proposed Expenditure Budget
Fiscal Year 2027-2028
General Fund $94,723,768 $94,642,578
Enterprise Fund - GTrans $40,732,341 $40,732,341
Special Revenue Funds $25,526,474 $29,048,309
Internal Service Funds $24,099,527 $26,344,486
Debt Service Funds $8,759,969 $8,759,969
Capital Improvement Fund (CIP) $4,500,000 $4,500,000
Enterprise Fund - Sewer $2,512,500 $2,467,992
Total Proposed Budget Fiscal Year
2027-2028 $200,854,579 $206,495,675
APPROVED:
___________________________
Clint Osorio, City Manager
Attachments
RESOLUTION NO. 6738 - Adopting a Biennial Budget for Fiscal Year 2026-27 & Fiscal Year 2027-28.pdf City of Gardena Proposed Biennial Budget FY2026-2027 & FY2027-2028.pdf 1 RESOLUTION NO. 6738
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GARDENA, CALIFORNIA, ADOPTING A BIENNIAL
BUDGET FOR SAID CITY FOR THE TWO FISCAL YEARS
COMMENCING JULY 1, 2026, TO AND INCLUDING JUNE
30, 2027, AND JULY 1, 2027, TO AND INCLUDING JUNE
30, 2028
WHEREAS, the Gardena Municipal Code provides that the City Manager of Gardena, California, shall cause a municipal budget to be prepared; and
WHEREAS, such budget, which includes the annual operating and capital improvement program budget, covering two fiscal year s commencing July 1, 202 6, to and including June 30, 202 8, has been reviewed by the City Council with regard to the approval of estimated revenues and expenditures; and
WHEREAS, the City Council has made such necessary revisions to the budget for the fiscal years 2026-2027 and 2027-2028 as presented by the City Manager;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GARDENA , CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE, AS FOLLOWS:
SECTION 1. That the City Council does hereby approve and adopt said two-year municipal budget for the City of Gardena for the fiscal year s 2026-2027 and 2027-2028 and, by this reference, is incorporated herein as if fully set forth.
SECTION 2. That copies of said budget be placed on file in the office of the City Clerk of the City of Gardena, California, open to public inspection.
SECTION 3. That, effective July 1, 202 6, the City Manager is hereby authorized to proceed with the implementation of the work program as incorporated in the approved two-year budget; that he has the authority to transfer any sum of appropriated funds within a department or function, and that he may carry over as needed to future years’ funds approved in this budget for projects, capital improvements, and capital outlay. It shall be the responsibility of the City Manager to determine the priority in which increases in personnel and capital acquisition shall be programmed for accomplishment during this year consistent with the availability of revenue and subject to the requirements of the Gardena Municipal Code regarding the expenditure of funds and the employment of personnel.
SECTION 4. That this Resolution shall be effective immediately.
BE IT FURTHER RESOLVED that the City Clerk shall certify to the passage and adoption of this Resolution; shall cause the same to be entered among the original Resolutions of said City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the Docusign Envelope ID: 8EC5A6C3-95B5-8FA0-818E-27254C2FB87E RESOLUTION NO. 6738
2 meeting at which the same is passed and adopted.
Passed, approved, and adopted this 23rd day of June 2026.
TASHA CERDA, Mayor
ATTEST:
MINA SEMENZA, City Clerk
APPROVED AS TO FORM:
CARMEN VASQUEZ, City Attorney
Docusign Envelope ID: 8EC5A6C3-95B5-8FA0-818E-27254C2FB87E
CITY OF GARDENA
PROPOSED BUDGET FISCAL YEARS 2026/2027 & 2027/2028
TABLE OF CONTENTS
SECTION 1 BUDGET MESSAGE AND GENERAL INFORMATION
City Manager’s Budget Message ......................................................................................................... i City Organization Chart ........................................................................................................................ 2 City Officials .......................................................................................................................................... 3 City Directory ........................................................................................................................................ 4 City Profile ............................................................................................................................................. 5 City Map ............................................................................................................................................ 6 City Facilities and Properties ................................................................................................................ 7 City History Timeline ............................................................................................................................. 10 City Appointed Commissions, Corporations, etc. ................................................................................ 11 Budget Team ........................................................................................................................................ 14 Budget Process .................................................................................................................................... 15 Budget Calendar ................................................................................................................................... 18 Budget Document Guide ...................................................................................................................... 19 Fund Structure ...................................................................................................................................... 20 Fund Descriptions ................................................................................................................................. 21 Accounting Principles and Policies ...................................................................................................... 24
SECTION 2 PROPOSED BUDGET SUMMARIES FISCAL YEARS 2026/2027 & 2027/2028 General Fund Revenue and Expenditures FY26/27 .......................................................................... 29 General Fund Revenue and Expenditures FY27/28 .......................................................................... 30 General Fund Historical Revenue and Expenditure Summary ........................................................... 31 General Fund – Fund Balances ........................................................................................................... 32 General Fund Top Five Revenue Sources .......................................................................................... 33 General Fund Revenues by Account ................................................................................................... 34 General Fund Long-Range Forecast ................................................................................................... 36 Summary of Fund Activity FY26/27 ..................................................................................................... 37 Summary of Fund Activity FY27/28 ..................................................................................................... 40 Summary of Revenues and Expenditures FY26/27 ............................................................................ 43 Summary of Revenues and Expenditures FY27/28 ............................................................................ 44
CITY OF GARDENA
PROPOSED BUDGET FISCAL YEARS 2026/2027 & 2027/2028
TABLE OF CONTENTS
SECTION 3 DEPARTMENT PROPOSED BUDGET FISCAL YEARS 2026/2027 & 2027/2028 Operational Organization Chart ........................................................................................................... 46 Citywide Staffing Plan ........................................................................................................................... 47 Elected & City Manager’s Offices ........................................................................................................ 48 Administrative Services ........................................................................................................................ 52 Community Development ..................................................................................................................... 58 GTrans ..…. .......................................................................................................................................... 63 Police ..…. ........................................................................................................................................... 69 Public Works ....................................................................................................................................... 74 Recreation & Human Services ............................................................................................................ 80 Non-Departmental ............................................................................................................................... 86
SECTION 4 CAPITAL IMPROVEMENT PROJECTS, DEBT SERVICE, INTERNAL SERVICE Capital Improvement Projects (CIP) .................................................................................................. 90 Debt Service Funds ............................................................................................................................. 113 Internal Service Funds ........................................................................................................................ 121
SECTION 5 APPENDIX
Glossary of Terms ................................................................................................................................ 126 Abbreviations and Acronyms ...............................................................................................................
132
CITY MANAGER’S
PROPOSED BUDGET
MESSAGE
FY 2026/27 & FY 2027/28
i
CCIITTYY MMAANNAAGGEERR’’SS BBUUDDGGEETT MMEESSSSAAGGEE PPRROOPPOOSSEEDD BBIIEENNNNIIAALL BBUUDDGGEETT –– FFIISSCCAALL YYEEAARR 22002266//22002277 && FFIISSCCAALL YYEEAARR 22002277//22002288
HONORABLE MAYOR AND CITY COUNCIL:
Presented for the City Council consideration is the proposed biennial budget for Fiscal Years 2026/27 and 2027/28. I am proud to present a budget that continues our organization’s longstanding tradition of excellence and innovation. This proposed budget is balanced, forward-looking, and a clear reaffirmation of our City’s values and priorities.
While Gardena remains in a strong financial position, with healthy reserves and a diverse revenue base, we continue to face several external challenges, including potential card club revenue fee losses, slower sales tax growth, and rising LA County fire protection costs. Even so, this budget remains focused on protecting the essential services our residents rely on and sustaining the improvements that keep our city strong.
This biennial budget reflects the City’s commitment to reinvesting Measure G resources into projects and programs that direct ly benefit our residents. As Gardena celebrates its 95th anniversary, we are especially proud to open the new Community Aquatic and Senior Center, a $26.5 million multigenerational facility that will serve as a lasting community asset for years to come. This project represents our ongoing investment in public spaces, wellness, and services for residents of all ages.
For the next two years, we allocate $63 million toward the Capital Improvement Program, including $ 43 million for critical street, sewer, and stormwater infrastructure improvements. These investments demonstrate our commitment to growth, neighborhood enhancement, and fiscal responsibility.
In addition to investing in infrastructure and community facilities, this budget makes important investments in technology to help the City operate more efficiently, improve productivity, and better serve residents and businesses. An important part of this effort is replacing the City’s 27- year-old Enterprise Resource Planning ( ERP) system, which will help streamline operations , support faster, more efficient, and transparent service.
Public safety, recreation, and community support services remain central to this budget. These investments reflect our belief that a strong city is built not only through sound infrastructure and fiscal stewardship, but also through programs that enhance quality of life and strengthen the social fabric of our community.
TASHA CERDA, Mayor
MARK E. HENDERSON, Mayor Pro Tem
RODNEY G. TANAKA, Councilmember
PAULETTE FRANCIS, Councilmember
WANDA LOVE, Councilmember
MINA SEMENZA, City Clerk
GUY MATO, City Treasurer
CLINT D. OSORIO, City Manager
CARMEN VASQUEZ, City Attorney
- ii -
The proposed budget for the first year, Fiscal Year 2026/27, totals $305 .5 million across all funds. This includes $89.8 million for the General Fund, $40.1 million for the City’s GTrans Enterprise Fund, $78.8 million for Special Revenue Funds, $24.5 million for Internal Service Funds, $9.5 million for Debt Service Funds, $7.2 million for the Sewer Fund, and $58.5 million for the Capit al Improvement Program.
For the second year of this biennial budget, the proposed budget for Fiscal Year 202 7/2028 for all funds is $206 .5 million, which includes $94.6 million budgeted for General Fund, $40 .7 million budgeted for the City’s GTrans Enterprise Fund, $29.1 million budget for the City’s Special Revenue funds, $26.3 million in Internal Service Funds, $ 8.8 million in Debt Service Funds, $ 2.5 million in Sewer Fund, and $4.5 million in Capital Improvement Program budget.
FISCAL YEARS 2026/2027 & 2027/2028 PROPOSED BUDGET:
Staff developed this proposed biennial budget starting in February of this year. This is a two -year budget, beginning on July 1, 2026, and ending on June 30, 2028 . Placing a multi -year budget in place was intended to provide our community with fiscal security during rapidly changing political, social and economic periods. We remain committed to long- term fiscal sustainability by carefully preserving our organizational strength and proactively identifying opportunities to diversify and expand our revenu e sources. As our community continues to grow and thrive, it is essential that we strategically allocate resources to support i ts development. Prioritizing both immediate needs and long- term investment will be key to our success. I am confident that this approach will enable us to navigate challenges effectively and improve the City’s long-term financial position.
The total City budget consists of General Fund revenues, Special Revenue Funds such as grant funds, and Enterprise Funds for the Transportation Department and City Sewer Maintenance Program. Only General Fund revenue is at the full discretion of the City Council for spending appropriations. All other revenues are otherwise restricted because of the funding sources. Budgeted expenditures are based upon an analysis of past expenditures in conjunction with revenue forecasts based on current economic conditions. For the proposed budget, the General Fund will be structurally balanced with a surplus for both fiscal years . Special Revenue Funds, however, are budgeted based on all available funds which include the total projected new revenue for the fiscal year and any carry -over funds which have already been received but have not yet been spent. Special Revenue Funds are structurally balanced including carry-over funds from the prior fiscal years.
The proposed budget shows General Fund revenue for Fiscal Year 2026/2027 at $89,905,980 and expenditures at $89,812,078 for a net surplus of $ 93,902, on June 30, 202 7. Fiscal Year 202 6/2027 total revenues for all funds, including transfers, are $277,205,485, with expenditures, including transfer out, at $30 5,561,268. The difference represents the use of fund balance in Special Revenue Funds.
In the second fiscal year, General Fund revenue for Fiscal Year 2027/2028 at $94,723,768 and expenditures at $94,642,578 for a net surplus of $ 81,190, on June 30, 2028 . Fiscal Year 2027/202 8 total revenues for all funds, including transfers, are $200,854,579, with expenditures, including transfer out, at $206,495,675. The difference represents the use of fund balance in Special Revenue Funds.
- iii -
GENERAL FUND PROPOSED BUDGET FISCAL YEARS 2026/2027 & 2027/2028
Revenue Sources
Proposed
Fiscal Year 2026-2027
Proposed
Fiscal Year 2027-2028 Difference
Sales and Use Tax 28,298,068$ 29,053,741$ 755,673 Sales and Use Tax - Measure GG 2,900,000 4,000,000 4,000,000 Property Tax 11,673,281 12,140,212 466,931 Vehicle License Fees 9,820,568 10,311,597 491,029 Utility Users Tax 7,741,353 8,171,287 429,934 Card Club Gross Revenue Fees 6,623,877 4,000,000 (2,623,877) Franchise and Other Taxes 5,764,835 5,975,669 210,834 Business License Tax 3,073,260 3,134,725 61,465 Current Service Charge 2,502,800 2,634,549 131,749 License and Permits 1,800,781 1,836,797 36,016 Investment Income 1,485,305 1,399,464 (85,841) Fines and Forfeitures 886,962 913,571 26,609 Intergovernmental 575,538 592,804 17,266 Other Revenue 512,036 512,036 - Charges to Other Funds 3,085,057 3,085,057 - Transfer In 3,162,259 6,962,259 3,800,000 TOTAL REVENUES 89,905,980$ 94,723,768$ 7,717,788 Department Expenditures
Proposed
Fiscal Year 2026-2027
Proposed
Fiscal Year 2027-2028 Difference
Police 36,029,098$ 38,221,256$ 2,192,158 Public Works 7,849,822 8,271,068 421,246
Recreation & Human Services 6,991,219 7,308,416 317,197 Administrative Services 3,616,371 3,835,436 219,065
Community Development 3,552,957 3,755,916 202,959
Elected and City Manager Offices 2,859,122 3,208,808 349,686 Non-Departmental including Fire and RCC 15,976,393 16,860,102 883,709 Transfers Out 12,937,096 13,181,576 244,480
TOTAL EXPENDITURES 89,812,078$ 94,642,578$ 4,830,500 REVENUES OVER EXPENDITURES 93,902$ 81,190$ 2,887,288
GENERAL FUND PROPOSED REVENUE AND EXPENDITURES COMPARISON
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COUNCIL POLICY DIRECTION
The City Council’s focus and commitment to our community, in conjunction with the efforts of management and staff, resulted in the following:
• Proposed CIP Budget for Fiscal Years 2026/2027 & 2027/2028 is $63 million o $9.6 m illion for Mas Fukai Park Building Project
o $ 11 million in community facility improvements and upgrades including a new dog park o $36.2 m illion in street & pedestrian improvement projects to maintain one of the best streets in California o $6.2 m illion in storm drain & sewer improvement projects
• Proposed General Fund Budget for Fiscal Years 2026/2027 & 2027/2028 with surplus of $93,902 & $81,190, respectively o Included $1.1 million each fiscal year for the Community Aquatic & Senior Center operation and expanded senior and youth programs
• The City continues in its efforts of transparency. See QR codes below to access the Financial Transparency Dashboard and the proposed budget document.
ACCESS THE PROPOSED BUDGET HERE: ACCESS THE FINANCIAL DASHBOARD HERE:
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IN CONCLUSION:
The proposed biennial budget for Fiscal Years 2026/27 and 2027/28 has been developed to balance immediate service demands with the City’s long-term priorities. It is intended to provide the City Council with a clear and comprehensive framework for making informed policy and fiscal decisions. The actions taken through this budget will help preserve Gardena’s financial sustainabi lity and support the community’s continued stability and success in the years ahead.
I would like to acknowledge the Department Heads, Budget Coordinators, and the Administrative Services Budget Team, under the leadership of Ray Beeman, Director of Administrative Services, for their collaborative efforts in preparing the proposed budget. Their professionalism, dedication, and teamwork were instrumental in completing this important work.
I would also like to extend my appreciation to the leadership of the Gardena Police Officers Association (GPOA), the Gardena Management Employees Organization (GMEO), the Gardena Municipal Employees Association (GMEA), the Gardena Police Managers Association (GPMA) , and the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART). These organizations are valued partners in our collective efforts, faithfully representing the interests of their members while working collaboratively with City management to serve the best interests of the Gardena community.
Respectfully submitted,
CLINT D. OSORIO, MPA
City Manager
GENERAL INFORMATION
HIGHER QUALITY OF LIFE
…ACHIEVED BY CONSISTENT & CONTINUOUS IMPROVEMENT
OUR MISSION
The elected leadership and employees of the City of Gardena individually and collectively are committed to maintaining an efficient and effective government that ensures the highest quality of life, a safe and attractive environment, and a sound economic future for the community.
OUR VISION
We envision Gardena as one of the most desired communities in which to live, do business, work, and play in the South Bay.
OUR DUTY
As public servants it is our duty and our desire to provide reliable service guided by our commitment to these Core Values.
ORGANIZATIONAL VALUES
• Fiscal Accountability & Sustainability
• Workforce Excellence
• Community Involvement
COMMUNITY VALUES
• Safe Community Environment
• Sustainable Economic Development
• Attractive & Livable Neighborhoods
1 CITY OF GARDENA ORGANIZATION CHART
CITIZENS OF GARDENA
ELECTED & CITY MANAGER’S OFFICES
ELECTED MAYOR
ELECTED CITY COUNCIL
ELECTED CITY CLERK
ELECTIONS & PUBLIC RECORDS
ELECTED CITY TREASURER
PUBLIC FUNDS & INVESTMENTS
APPOINTED COMMISSIONS
& BOARDS
PLANNING & ENVIRONMENTAL QUALITY
COMMISSION
GARDENA ECONOMIC BUSINESS ADVISORY
COMMISSION
GTRANS
TRANSIT ADMINISTRATION
TRANSPORTATION OPERATIONS
ON-DEMAND
TRANSIT EQUIPMENT & FACILITIES
RECREATION & HUMAN SERVICES
PROGRAM & FACILITY ADMINISTRATION
RECREATION & LEISURE SERVICES
SPORTS LEAGUES
SPECIAL EVENTS
YOUTH, FAMILY & SENIOR SERVICES
COMMUNITY DEVELOPMENT
PERMITS & LICENSING
BUILDING & PLANNING
BUSINESS LICENSE ENFORCEMENT
ANIMAL CONTROL & CODE ENFORCEMENT
ECONOMIC DEVELOPMENT
POLICE
POLICE ADMINISTRATION
POLICE OPERATIONS
POLICE SUPPORT SERVICES
TRANSIT SECURITY
PUBLIC SAFETY & INFORMATION
EMERGENCY PREPAREDNESS
PARKING ENFORCEMENT
GJJIP
PUBLIC WORKS
PARKS & GROUNDS MAINTENANCE
TREE TRIMMING (CITYWIDE)
CITY FACILITIES MAINTENANCE
STREETS & TRAFFIC SIGNALS/SIGNS
SANITATION, RECYCLING, SEWERS
ENGINEERING & CAPITAL PROJECTS
EQUIPMENT MAINTENANCE
HUMAN SERVICES COMMISSION
RECREATION & PARKS COMMISSION
SENIOR CITIZENS COMMISSION
YOUTH COMMISSION
FIRE SERVICES
(CONTRACTED) - LA COUNTY
CONSOLIDATED FIRE PROTECTION
DISTRICT
ADMINISTRATIVE SERVICES
FISCAL RESOURCES
TECHNOLOGY RESOURCES
RISK MANAGEMENT
INVESTMENTS
PURCHASING
HUMAN RESOURCES
APPOINTED CITY MANAGER
ORGANIZATION ADMINISTRATION
POLICY DEVELOPMENT/IMPLEMENTATION
STRATEGIC PLANNING
CITIZEN, BUSINESS, AGENCY RELATIONS
INTERGOVERNMENTAL RELATIONS
CITY ATTORNEY
(CONTRACTED)
RENT MEDIATION BOARD
GARDENA BEAUTIFICATION COMMISSION
2 CITY OFFICIALS
MAYOR AND CITY COUNCIL
Tasha Cerda, Mayor
Occupation: Insurance Agent
Elected: City Clerk – March 2009
Appointed: Councilmember – September 2009
To fill unexpired term due to resignation of Councilmember Elected: Councilmember – March 2011
Elected: Councilmember – March 2013
Elected: Mayor – March 2017
Elected: Mayor – June 2022
Current Term Expires: June 2026
Mark E. H
enderson, Mayor Pro Tem
Occupation: Administrator
Elected: Councilmember – March 2015
Elected: Councilmember – March 2020
Elected: Councilmember – March 2024
Current Term Expires: March 2028
Rodney G. Tanaka, Councilmember
Occupation: Retired Police Lieutenant/Licensed Pastor
Elected: Councilmember – March 2017
Elected: Councilmember – June 2022
Current Term Expires: June 2026
Paulette C. Francis, Councilmember
Occupation: Teacher
Elected: Councilmember – March 2020
Elected: Councilmember – March 2024
Current Term Expires: March 2028
Wanda Love, Councilmember
Occupation: Chamber Director/Business Owner
Elected: Councilmember – June 2022
Current Term Expires: June 2026
CITY CL
ERK AND CITY TREASURER
Mina Semenza, City Clerk
Occupation: Real Estate
Elected: City Clerk – March 2013
Elected: City Clerk – March 2017
Elected: City Clerk – June 2022
Current Term Expires: June 2026
Guy H. Mato, City Treasurer
Occupation: Businessman
Elected: City Treasurer – June 2022
Current Term Expires: June 2026
APPOI
NTED OFFICIALS
Clint D
. Osorio, City Manager
Appointed City Manager in December 2019
Carm
en Vasquez, City Attorney
Appointed as City Attorney in January 2020
Lisa Kr
anitz, Assistant City Attorney
Appointed as Assistant City Attorney in February 2009
Ivy Tsai
, Assistant City Attorney
Appointed as Assistant City Attorney in October 2025
EXECUT
IVE STAFF – (All Appointed)
Todd
Fox, Chief of Police
Ernie Crespo, Deputy City Manager/Director of Transportation Ray Beeman, Director of Administrative Services
Greg Tsujiuchi, Director of Community Development
Kevin Kwak, Acting Director of Public Works
Nikki Sweeney, Acting Director of Recreation & Human Services Brian Kane, Los Angeles County Assistant Fire Chief
3 DIRECTORY
City of Gardena
1700 West 162nd Street
Gardena, CA 90247-3778
Telephone: (310) 217-9500 Fax: (310) 217-6119 Website: www.cityofgardena.org
ELECTED & CITY MANAGER’S OFFICES
Mayor
Tasha Cerda (310) 217-9507
Mayor Pro Tem
Mark E. Henderson (310) 217-9507
Councilmembers
Rodney G. Tanaka (310) 217-9507
Paulette C. Francis (310) 217-9507
Wanda Love (310) 217-9507
City Clerk’s / City Treasurer’s Office
City Clerk
Mina Semenza (310) 217-9565
Assistant City Clerk
Becky Romero (310) 217-9566
City Treasurer
Guy H. Mato (310) 217-9664
Deputy City Treasurer
Vacant (310) 217-9693
City Manager’s Office
City Manager
Clint D. Osorio (310) 217-9503
City Attorney
Carmen Vasquez (310) 217-9544
Assistant City Attorney
Ivy Tsai
Lisa Kranitz
ADMINISTRATIVE SERVICES
Director
Ray Beeman (310) 217-9502
COMMUNITY DEVELOPMENT
Director
Greg Tsujiuchi (310) 217-9526
GTRANS
Deputy City Manager/Director
Ernie Crespo (310) 965-8888
POLICE DEPARTMENT
Chief of Police
Todd Fox (310) 217-9601
PUBLIC WORKS
Acting Director
Kevin Kwak (310) 217-9570
RECREATION & HUMAN SERVICES
Acting Director
Nikki Sweeney (310) 217-9537
LA County Fire Department
Assistant Fire Chief
Brian Kane (310) 329-3315
Gardena Station 162nd Street
Gardena Station 135th Street
For comments or questions regarding this publication, please contact the Administrative Services Department at (310) 217-9516 4 CITY PROFILE – 2026
Gardena, California is a full-service city located just 13 miles south of metropolitan Los Angeles in the South Bay area of Los Angeles County.
Gardena is strategically located near the intersections of the Harbor (110), San Diego (405), and Gardena (91) Freeways and just south of the Anderson (105) Freeway.
Date of Incorporation September 11, 1930
General Law City 1955
Form of Government Council-Manager Form
County Los Angeles, Second Supervisorial District
State Representatives 62nd & 66th Assembly Districts
35th Senatorial District
U. S. Representative 43rd U.S. Congressional District
Area 5.9 Square Miles
Population 61,187
Dwellings 23,060
Police Protection 94 sworn personnel and 36 marked units, including canine units.
Fire Protection City Fire Department services were
transferred to the Consolidated Fire
Protection District of Los Angeles County
and became a contract service in October
2000.
Recreation and Parks 6 parks (approximately 39 acres) including 2 with skate parks, 2 community centers, 1
municipal pool, 1 parkette, and 2
gymnasiums.
GTrans 51 buses and 5 Bolt On-Demand vehicles
5 ARTESIA BLVD.
ELECTRIC ST.
BLVD.
161st ST.
BLVD.
VERMONT AVE.
REDONDO
BEACH
BUDLONG AVE.
City Hall Administration Offices and Campus
Police Headquarters
Fire Department Headquarters
Fire Station 2
Public Works Building and Maintenance Yard
Kiyoto "Ken" Nakaoka Community Center
Human Services and James Rush Gymnasium
National Guard
Gardena Transit Administration, Operations, & Maintenance Facility Not To Scale
WESTERNNORMANDIE 182nd ST.
162nd ST.
GRAMERCY PL.
166th ST.
168th ST.
170th ST.
GARDENA
164th ST.
139th ST.
MARINE
MANHATTAN
BEACH BLVD.
ROSECRANS
147th
135th ST. CRENSHAWBLVD.
BUDLONG AVE.
WESTERN
GRAMERCY PL.
VAN NESSAVE.
ST.
AVE.
158th ST.
AVE.
AVE.
EL SEGUNDO AVE.
HALLDALE AVE.
VERMONT AVE.
BLVD.
154th ST.
132nd ST.
B
C
D
E
F
G
9 6
2 5
4 8
3 1
160th ST.
1 2
3 4
5 6
7 8
9 Sister-City Parkette
Vincent Bell Memorial Park
Edward L. Thornburg Park
George H. Freeman Memorial Park
Mas Fukai Park
Paul A. Rowley Memorial Park
Arthur Lee Johnson Memorial Park
149thST.
SPINNING
PURCHE
154th PL.
HARVARD
7 BRIGHTON
A
LEGEND:
A
B
C
D
E
F
G
10 11
PURCHE AVE.
1 0 11
Gardena Community Aquatics & Senior Center
Rosecrans Ave. Community Center
10 6
CITY FACILITIES AND PROPERTIES
City Hall Administrative Offices and Campus
1700 West 162nd Street
The Administrati ve Offices have approximately 25,975 square feet of building space, which includes City Council Chambers, a Council Chambers Conference Room, 32 administrative offices and 9 bathrooms.
The buildings were built in 1962; and in f iscal year 2001- 2002, the Administrative Office building was renovated with automatic sliding glass doors to comply with the Americans with Disabilities Act. The campus lawn in front of City Hall was dedicated on June 12, 1982 , as the Lucille Randolph Plaza , in honor of the City Clerk w ho served the City for twenty-three years.
Police Headquarters
1718 West 162nd Street
The Police Headquarters has approximately 63,475 square feet of site area and approximately 23,690 square feet of building space that includes a one- story brick masonry police headquarters structure (Class C construction). Built in 196 3, the needs of the department have far outgrown the building’ s capacity. Separate modular units have been constructed in the parking lot , and on an adjacent property to serve as annex offices.
Fire Station #158
1650 West 162nd Street
The Fire Department Headquarters has approximately 27,925 square feet of site area and approximately 17,975 square feet of building space, which includes a two- story brick masonry fire station building (Class C construction). The building was built in 1963 and is currently leased to the Los Angeles County Fire District. The City contracts with the Los Angeles County Fire District for the provision of fire services.
Fire Station #159
2030 West 135th Street
Fire Station 2 has approximately 26,140 square feet of site area and approximately 5,949 square feet of building space, which includes a pre- cast concrete fire station structure. The fire station structure was built in 1957 and includes an apparatus garage, offices, kitchen, dining area,
chief’s quarters, dormitory and training tower. The fire station structure is currently leased to the Los Angeles County Fire District. The City contracts with the Los Angeles County Fire District for the provision of fire services.
Public Works Building and Maintenance Yard
1717 West 162nd Street
The Public Works Building has approximately 11,825 square feet of building space, which includes 10 administrative offices and 5 bathrooms.
The buildings were built in 1968 and 1990; and in fiscal year 2003- 2004, the building was renovated with automatic sliding glass doors to comply with the Americans with Disabilities Act. In addition, a City yard is adjacent to the Public Works Building to create a total land area of 1.850 acres.
Kiyoto “Ken” Nakaoka Community Center
1670 West 162nd Street
The Community Center has approximately 17,137 square feet of building space, which includes 6 classrooms, 4 offices, a kitchen and an auditorium that can accommodate up to 280 people. The building was built in 1975 and dedicated June 7, 1975. O n December 13, 1989, an expansion was dedicated in honor of the first Japanese- American to be elected (1966) to a City Council position in the United States , and the first elected Mayor of the City. During fiscal year 2001- 2002, the Community Center was renovated with automatic sliding glass doors to comply with the Americans with Disabilities Act.
Located in the Nakaoka Community Center, the Lucien “Lou” Lauzon Memorial Auditorium was dedicated August 22, 1981, in honor of his active community support, which included serving as a member of the Citizens Advisory Committee and the Beautification Committee.
Human Services Building and James Rush Gymnasium
1651 West 162nd Street
The gymnasium has approximately 42,650 square feet of site area and approximately 20,700 square feet of building space, which includes a one-story masonry gymnasium (Class C construction). The building w as built in 1979. The Human Services Division offices are located in this 7 CITY FACILITIES AND PROPERTIES
building. The roof of the gymnasium was renovated in f iscal year 2002- 2003, and the administrative office of the gymnasium was renovated with automatic sliding glass doors in fiscal year 2004-2005 to comply with the Americans with Disabilities Act.
The gymnasium was rededicated as the James Rush Memorial Gymnasium in honor of the former Councilmember and Mayor of Gardena (1942 – 1956) on June 30, 1979.
The Army National Guard
2100 West 154th Street
A portion of the former Municipal Transportation Facility, 1.72 acres , was sold for development of residential units in 2015. The remaining portion of the property is leased to the State of California for use as a National Guard post.
GTrans Administration, Operations, and Maintenance Facility 13999 South Western Avenue
The new transit facility opened in May 2009, o n a 9.1-acre site that accommodates a fleet of 100 buses, plus p aratransit and support vehicles. The facility is designed as a “Green Building,” emphasizing energy efficiency and environmental sensitivity and includes solar panels for power generation, bus simulators for operator training, and current technology in bus maintenance equipment.
The administration and operations building is approximately 24,000 square feet in area. The maintenance building is approximately 45,000 square feet with a 4,000 square foot bus-wash structure and 2,800 square foot fuel island. A photovoltaic panel shade structure provides covered parking.
❿ Gardena Community Aquatic & Senior Center
1651 West 162nd Street
The Senior Center, spanning approximately 12,000 square feet on two levels. The Senior Center will feature a reception/lobby, restroom, conference room, office, breakroom, storage room, and kitchen/pantry.
Additionally, shared use program rooms, a study lounge, and balcony will be available. The building will be equipped with fiber optic communication capability, an audiovisual system, security key cards, and photovoltaic system.
The new Aquatic Center will encompass 7,020 square feet and will include a 25-yard, 8-lane, ¾-meter diving stand, and pool exercise/leisure area. The Aquatic Center will feature a main entrance, outdoor showers, bleacher seating, seat walls, shade structures, a pool
equipment/mechanical room, and pool storage. The outdoor courtyard will accommodate exercise stations, ADA accessible drinking fountain, picnic tables, site lighting and furnishings, tree and shrub planting, irrigation, hardscape paving, walls, barbecue grill and lawn area, and ADA parking stalls, utility service lines and all other incidental elements.
⓫ Rosecrans Community Property
2500 West Rosecrans Avenue
Approximately 1.07 acres of land. This property was acquired in September 2021 to be redeveloped for recreational or other civic use.
CITY PARK FACILITIES
(A) Sister-City Parkette - 160th Street/Harvard Boulevard
Sister-City Parkette was renamed in August 2013 from Harvard Parkette.
The Parkette was dedicated in November 1958 as a neighborhood play area, is 0.19 acre and includes a slide and jungle gym, swings, and lunch benches.
(B) Vincent Bell Memorial Park - 14708 South Halldale Avenue
This 1.87-acre park was d edicated on May 26, 1972 , in honor of a City Councilman who died in office shortly after his election in 1970. The facility is equipped with a recreation room, baseball diamond, outdoor basketball court, handball court, two tiny tot play areas, two picnic shelters, and a police office.
8 CITY FACILITIES AND PROPERTIES
(C) Edward L. Thornburg Park - 2320 West 149
th Street
The Edward L. Thornburg 2.39-acre park was n amed for the developer who donated the land in 1953. The facility is equipped with a recreation room, baseball diamond, two outdoor basketball courts, handb all court, tiny tot play area, picnic shelter, martial arts room, and horseshoe pit.
(D) George H. Freeman Memorial Park - 2100 West 154
th Place
This 2.71-acre park was dedicated on April 11, 1957, in honor of George Freeman, who served as the first City Recreation Director. The park is equipped with two recreation rooms, a baseball diamond, basketball court, handball court, tennis court, tiny tot play area, picnic shelter, and police office.
(E) Mas Fukai Park - 15800 South Brighton Avenue
4.53 acres were purchased from the County and dedicated as a City park in 1960. In June 2000, the Gardena City Council rededicated Recreation Park as Mas Fukai Park. Masani “Mas” Fukai was elected to Council in 1974 and served until his retirement in 1998. Mas, as his friends and associates call him, also served for five years as the Chief Deputy to then Los Angeles County Supervisor Kenneth Hahn. The facility is equipped with three recreation rooms, three baseball diamonds, two basketball courts, a handball court, tiny tot play area, picnic shelter, and kitchen.
(F) Paul A. Rowley Memorial Park - 13220 South Van Ness Avenue
This 18.17-acre park was d edicated July 21, 1962, in honor of the first City Administrative Officer, 1959 – 1962. Mr. Rowley died of a heart attack in June 1962, while addressing a public affair at the park. The park was originally named Van Ness Park, when it opened in 1959. The expansion of the park facilities, which included the addition of a gymnasium, was dedicated February 12, 1990. The facility is equipped with two recreation rooms, a gymnasium, four baseball diamonds, three outdoor basketball courts (one full and two half) , a skate park opened in March 2012, four tennis courts, two tiny tot play areas, three picnic shelters, a kitchen, auditorium, weight room, teen center, and police office.
(G) Arthur Lee Johnson Memorial Park - 1200 West 170th Street
This 7.5-acre park, originally dedicated July 9, 1977 , as South Park, was rededicated on January 13, 2007 as Arthur Lee Johnson Memorial Park.
Arthur Johnson marched with Dr. Martin Luther King, Jr. in the civil rights movement, founded the Gardena Dr. Martin Luther King, Jr. Cultural Committee, and served as its president for twenty years . In 1973, his efforts made G ardena the first city west of the Mississippi to honor Dr.
King’s birthday with an annual commemorative celebration. Mr. Johnson served as a Planning and Environmental Quality Commissioner for twelve years. His many years of community service earned him the Gardena Black History Month Trailblazer Award and a place on the City’s Wall of Fame.
The Arthur Lee Johnson Memorial Park is equipped with a recreation room, two basketball courts, a skate park opened in June 2012, four tennis courts, a tiny tot play area, picnic shelter, soccer field, police shooting range, and entrance to the Gardena Willows Wetland.
9 CITY OF GARDENA HISTORIC TIMELINE
1930 Incorporation of City of Gardena on September 11, 1930 with a population of approximately 3,000.
Annexation of Western City on November 12, 1930.
2001 Eldorado Parking COP liquidated through agreement with Hustler for a net principal gain of $980,000.
2013 February Standard & Poor's raised the City's credit rating to A. 1936 First legal card club license in the State of California to Gardena.
2002 Eliminated the General Fund deficit a year ahead of schedule with a positive $1,048,182 balance on June 30, 2002.
Sold parking structure located at 1041 Redondo Beach Blvd.
Entered into sales agreement for 1.72 acres at
15350 Van Ness Avenue. September 2014, Standard & Poor's raised the City's credit rating to A+
1940 City bus service began on January 15,1940. Voters approved an increase in the Transient Occupancy Tax from 7% to 11% in November.
2014 Closed escrow on 15350 Van Ness Ave (former GTrans facility). Adopted 2016-2021 Five Year Strategic Plan. Council approved updated comprehensive fee resolution.
1953 Gardena Municipal Bus Lines moved to new location on Van Ness Avenue in November.
2005 Celebrated 75th anniversary. 2015 Adopted 2016-2021 Five Year Strategic Plan. Council approved updated comprehensive fee resolution. Civic Center
1954 City adopted its official seal and slogan
"Freeway City" on October 26, 1954.
2006 City Council approved settlement agreement with Sumitomo Trust and Union Bank that would restructure the $26 million debt on the failed First Time Homebuyer Program and the
2016 Mitchell Lansdell City Manager retires, Ed Medrano appointed Acting City Manager.
1955 Gardena was designated as a General Law City by action of the State Legislature.
December - City made a $2.6 million payment to Sumitomo Trust and Union Bank on the long-term $26 million debt
thereby ending the debt service obligation
Refinancing of the 2006 Series C Bond Debt. Reassesment of the Sewer Fees to ensure sewer upkeep.
1964 Adopted City flag. 2007 Received investment grade credit ratings:
Standard & Poor's BBB rating
Moody's Baa3 rating
2017 Ed Medrano appointed as City Manager.
1980 Received the All America City Award. Refinanced the South Bay Regional Communications Center debt at an improved interest rate.
2019 Clint D. Osorio appointed as City Manager
1982 Maintenance facility added at the Gardena Municipal Bus Lines.
Adopted 5 Year Plan 2007 - 2012. 2020 March 3, 2020 Measure G, collection of additional 0.75% sales tax to maintain city general services
1994 Council action limited the number of card clubs from six to two.
November 20, 2007 City Manager Mitchell G. Lansdell was awarded the Municipal Leader of the Year for his 10-year effort to lead the City out of financial crisis.
March 19, 2020 Novel Coronavirus Pandemic - COVID 19,
Stay-at-Home orders issued and City Hall closed to the public. 1995 Annexation of El Camino Village. 2009 May 2009 Gardena Municipal Bus Lines moved to new facility.
Dec 2009 Standard & Poor's raised the City's rating to A-.
December 2020 Pension Obligation Bond issued to refinance City's UAL effecting savings of $50 million. City revises Strategic Plan to address effects of COVID
1996 Employee committees formed to review revenues, operational efficiencies, and customer service. A fourth committee compiled the information for council consideration.
2010 June 30, 2010 General Fund reserves = $8,649,750 or 20%.
September 11, 2010, City will celebrate its 80th Anniversary with a population of approximately 61,927.
2021 Issuance and sale of Lease Revenue Bond to finance a portion of the cost of the Aquatic & Senior Center, the Rosecrans Community Center, and park improvements.
To reduce expenditures, Council implemented hiring freeze and a 2% decrease in appropriated expenditures for last six months of the fiscal year.
2011 April 1, 2011 UUT rate collection at the maximum of 5%.
Senior exemption eligibility reduced to age 60.
City is awarded an $8.5 million Prop 68 competitive grant as well as an $1.4 million appropriation for the Aquatic & Senior Center
1998 Council committed to a plan to eliminate the projected $5 million General Fund deficit with a $1 million set aside for the next five years.
May 10, 2011 Council adopted new fee resolution with an effective date of July 11, 2011.
2022 City was named Los Angeles County's
Most Business Friendly City
2000 The newest card club in the State, the Hustler, opened in June 2000.
September 2011, the City purchased the Goodwill property as well as property adjacent to the Police Department.
2023 Finalist for the All American City Award
Ending General Fund balance June 30, 2000 = ($2,719,574). 2012 Created "Super-Departments" as a transitional phase for operational efficiency and cost containment during succession planning.
2026 Completion of the $26.5M Community Aquatic & Senior Center which opened in June 2026
10 CITY OF GARDENA COMMISSIONS, CORPORATIONS, AGENCIES, BOARDS, ADVISORY GROUPS,
COMMITTEES AND ASSOCIATIONS
The Mayor and City Council appoint members to Commissions, Corporations, Agencies, Boards, etc. to advise the City on important programs and policy decisions. Public participation, therefore, is a vital component of the City's governing system. In addition, there are other important Committee and Association members who meet on a regular basis but are not appointed by the Mayor and City Council. All of the meetings are open to the public.
APPOINTED COMMISSIONS
GARDENA BEAUTIFICATION COMMISSION
This Commission has a maximum of nine voting members who study and make recommendations to the City Council relating to the beautification and livability of all areas of the City of Gardena. The Chairperson is a member of the City Council. Five of the members are appointed by the City Council, and the remaining three at -large members are nominated by the Commission Chair and ratified by City Council. Commission projects include elimination of graffiti, beautification of streets and parkways; tree planting, and other related activities.
GARDENA ECONOMIC BUSINESS ADVISORY COMMISSION (GEBAC)
Established in May 2016, its mission is to promote economic opportunities by establishing and preserving a business and job friendly environment to attract and retain businesses, industry and commerce, that will enhance Gardena’s economic viability, financial stability, and improve the overall quality of life of its residents. GEBAC has the following goals:
• Promote new business development opportunities;
• Strengthen the relationship between the City and the business community;
• Support retention and attraction of diversified tax base for the long- term viability of the City;
• Provide support on issues affecting the economy and quality of life in the City
• Review City business practices and programs to ensure the City of Gardena remains business friendly
This Commission consists of eleven members from the business community within the City of Gardena. GEBAC meets the 3 rd Wednesday of
odd months.
GARDENA YOUTH COMMISSION
The Youth Commission is composed of five members appointed by the City Council and five "at-large" members approved by the Commission and ratified by the City Council. The Commission identifies and evaluates youth and community issues and projects and makes recommendations to the City Council to resolve such issues. Commission members also work as volunteers with community groups, organizations, and Recreation and Human Services programs.
HUMAN SERVICES COMMISSION
The Human Services Commission is composed of five members who are responsible for the development and utilization of available resources to meet needs within the City. The Mayor and each Councilmember appoint one member. The Commission advises the Council on all matters relating to social conditions within the City, assesses and reports to the Council the social needs of the citizenry, and advises the Human Services Division regarding policy and program direction for meeting such needs and making appropriate recommendations to the Council.
PLANNING AND ENVIRONMENTAL QUALITY COMMISSION
Composed of five members, this Commission was created in compliance with the State Government Code as an advisory agency to the City Council on all matters of land use and the environment. Its responsibilities are to investigate and report on the design and improvement of adopted subdivisions, and to submit reports and recommendations to the City Council on matters relating to zoning, land use, environment, the City's General Plan, and other related matters.
RECREATION AND PARKS COMMISSION
This Commission is composed of five members who advise the Council on matters relating to recreation and parks within the City. The Commission considers, advises, and/or recommends to the City Council the needs of the City pertaining to the acquisition, development, and use of facilities, buildings and structures for recreational and park purposes; promotes public interest in recreation and parks programs and regulations; and consults and confers with public officials and agencies, citizens, civic, educational, professional, and other organizations.
11 CITY OF GARDENA COMMISSIONS, CORPORATIONS, AGENCIES, BOARDS, ADVISORY GROUPS,
COMMITTEES AND ASSOCIATIONS
SENIOR CITIZENS COMMISSION
This Commission is composed of five members, appointed by the City Council, who advise them on all matters relating to the needs and concerns of the City's older adult population. The Commission coordinates its activities with those of the Affiliated Committee on Aging.
APPOINTED CORPORATIONS / AGENCIES / BOARDS
CITY OF GARDENA FINANCING AGENCY
The Agency was created in July 1991 as a Joint Powers Authority between the City of Gardena and the Gardena Parking Authority. The Agency provides for financing of the acquisition, construction and improvement of Public Capital Improvements, for working capital requirements, and for liability or other insurance programs of the City and the Parking Authority.
BOARD OF APPEALS
This board is comprised of the members of the Planning and Environmental Quality Commission, with the building official as an ex -officio member. The Board is governed by the same procedures as the Planning and Environmental Quality Commission. The Board determines the suitability of alternate materials and methods of construction and provides reasonable interpretations of the provisions of the Uniform Building Code. The Board also determines whether a building constitutes a menace to public safety, and whether repairs, alterations, or demolition are necessary to abate the menace to public safety.
HOUSING APPEALS BOARD
This Board, consisting of members of the Planning and Environmental Quality Commission, is authorized by the City Council to hear all appeals relating to violations of housing standards and is governed by the provisions of the Uniform Housing Code. The Community Development Director serves as secretary to the Housing Appeals Board.
RENT MEDIATION BOARD
This fifteen-member Board is composed of five landlords, five tenants, and five members-at-large, all of whom are appointed by the City Council to assist citizens in mediating rental increase-related disputes.
APPOINTED ADVISORY GROUPS
FINANCE COMMITTEE
This City’s Finance Committee is comprised of two Councilmembers (appointed by the Mayor) and the City Treasurer. The Committee meets quarterly with the City Manger to review and make recommendations on the City’s budget, debt, audit, and other financial actions.
NON-APPOINTED COMMITTEES / ASSOCIATIONS:
CHARITABLE FUND BENEFITING GARDENA
The Charitable Fund Benefiting Gardena is an independent 501(c)3 non- profit which provides supplemental resources directly to the City of Gardena programs and community organizations to enhance the lives of Gardena’s residents and visitors. The Board of Directors is composed of city staff and volunteers in the community.
CINCO DE MAYO SCHOLARSHIP AND FESTIVAL COMMITTEE OF
GARDENA
The Cinco de Mayo Scholarship and Festival Committee of Gardena is made up of volunteers from the community. Established in 1986 by Mayor Don Dear, the annual Gardena’s Cinco de Mayo celebration is one of the South Bay’s longest running Cinco de Mayo events and its goal is to share some of the area’s Latino heritage and culture.
DR. MARTIN LUTHER KING, JR. CULTURAL COMMITTEE OF GARDENA Dr. Martin Luther King, Jr. Cultural Committee of Gardena was founded in 1972 by Arthur Johnson, a chemist and educator who originally wanted Gardena to honor Dr. King with a city holiday. The committee is made up of volunteers from the community. The annual event activities include a parade, a battle of the bands, an annual youth night, and the essay contest.
GARDENA POLICE FOUNDATION
The Gardena Police Foundation is a partnership of citizens, businesses, and philanthropic organizations whose mission is to provide additional resources to improve public safety. Incorporated in September 2006 as an independent 501(c)3 non- profit organization, the Foundation relies solely on donations and fundraising efforts. The Board of Directors actively raises money from the community and awards grants directly to the police
12 CITY OF GARDENA COMMISSIONS, CORPORATIONS, AGENCIES, BOARDS, ADVISORY GROUPS,
COMMITTEES AND ASSOCIATIONS
department in response to the department’s request for program, training and equipment needs not included in the City’s budget.
GARDENA SISTER CITY ASSOCIATION
The Gardena Sister City Association, comprised of community volunteers, has been active in promoting international friendship for over five decades. The program's goal is to learn more about the community, enjoy the hospitality, and build personal contacts with other cultures. This is done through adult and youth exchange programs that encourage person-to-person visitations in each city. Ichikawa, Chiba, Japan has been an official Sister City to Gardena since 1962 and Huatabampo, Sonora, Mexico , since 1973. Gardena has also maintained an unofficial mutual friendship with Rosarito, Baja, California, Mexico for many years.
GARDENA TRAFFIC COMMITTEE
The City Traffic Committee is composed of City staff persons, including the Chief of Police; Recreation, Human Services, Parks, & Facilities Director; and the Transportation Director. This Committee advises the City concerning traffic-related matters including, but not limited to, parking, stop signs, signals, and congestion, etc.
GARDENA VALLEY AFFILIATED COMMITTEE ON AGING
The Gardena Valley Affiliated Committee on Aging is composed of a five- member board of directors and members at large, who assist and coordinate the work of community organizations, government agencies, and private entities concerned with the betterment of living conditions for the aging. They coordinat e events, activities and programs into a unified approach that will meet the economic and social needs of the elderly, and those in need of assistance throughout the greater Gardena community.
The committee advises the Gardena Senior’s Bureau and the Gardena Senior Citizen’s Commission on all matters relating to the needs and concerns of the City’s older adult population.
13 BUDGET TEAM
CITY MANAGER – CLINT D. OSORIO, MPA
DIRECTOR OF ADMINISTRATIVE SERVICES – RAY BEEMAN, CPA
Budget Managers – Khoi Quach, Danny Rodriguez, Yurina Kim, Diana Rodriguez, Diana Schnur, Nathalie Perez
DEPARTMENTAL BUDGET COORDINATORS
Capital Improvement Projects – Kevin Kwak
Community Development – Greg Tsujiuchi, Jo-Ann Burns, Georgina Placido Elected and City Manager’s Offices – Alejandra Orozco, Becky Romero, Katherine Rhee, Tiffany Alcaraz, Anahi Corte
GTrans – Ernie Crespo, Dana Pynn, Jennifer Abro, Charles Santos Police – Todd Fox, David Brock, Mayra Maciel, Priscilla Estrada Public Works – Kevin Kwak, Kevin Thomas, Kim Nolan, Hong Lee Recreation & Human Services – Nikki Sweeney, Nicola Howard, Christina Weldin, Adrianna Renteria, Amber Suit
14 BUDGET PROCESS
MISSION OF THE BUDGET PROCESS: To help decision makers make informed choices about the provision of services and capital assets and to promote stakeholder participation in the process. - Government Finance Officers Association (GFOA)
BUDGET GOAL: To develop and maintain a structurally balanced budget that maximizes City resources necessary to build, sustain and enhance the City’s future.
Preparation and adoption of the fiscal year budget is guided by the following five organizational principles set by the City Council:
1. Fiscal Integrity and Long-Term Financial Stability
2. Quality Economic Development
3. Workforce Excellence
4. Continually Improving Quality of Life for Residents
5. Maintaining an Attractive, Vital Livable Community
BUDGET OBJECTIVES: These organizational principles translate into the following budget objectives:
1. Establishing budgetary and fiscal policies that address current needs and set the foundation for future decisions.
2. Adopting a structurally balanced budget with realistic annual revenue project ions and expenditures below revenue
projections.
3. Pursuing grant and other special funds to augment City services in specific program areas.
4. Building adequate reserve funds to meet the City’s current and future obligations.
5. Creating public -private partnerships with mutual economic and service benefit.
6. Setting charges and users fees to recover City costs for providing services as much as possible but without
overburdening citizens, businesses, and property owners.
7. Replacing or upgrading vehicles and other capital equipment based on comparative cost of required maintenance for safety and performance efficiency.
8. Implementing efficiencies in service delivery and departmental operations that improve customer service and the quality of life in the community.
9. Enhancing employee skills and compensation to attract and maintain the best qualified staff and highest level of public service possible.
10. Providing superior public safety including community -based policing to reduce crime.
11. Providing community service programs that meet a variety of interests and needs.
12. Improving the public image and physical appearance of the City with proper maintenance of public right s-of-way and code enforcement of private properties.
BUDGET ROLES AND RESPONSIBLITIES
Citizens, property owners and businesses are encouraged to share ideas and provide input concerning the community and budgetary programs. This can be accomplished by discussing issues with City’s commissions and committees or directly with program managers.
Citizen input received during public hear ings or other correspondence is not only invited but needed to ensure that public needs are met.
Finance Committee, comprised of two councilmembers (appointed by the Mayor) and the City Treasurer, reviews the City’s revenues and 15 BUDGET PROCESS
expenditures each quarter and the City Manager’s proposed budget before submitting to the City Council for adoption.
City Council provides direction for the preparation of the budget through adoption of polic ies and ongoing input. Council is responsible for the review and adoption of the City budget.
City Manager is responsible for:
providing staff direction for budget preparation
considering departmental budget requests and requests for supplemental budget items
reviewing projected revenues and expenditures with the Director of Administrative Services
formulating a comprehensive budget proposal for
submission to the City Council
presentation of a proposed budget
overseeing budget administration throughout the fiscal year
Director of Administrative Services is responsible for:
evaluating and reporting the City’s fiscal condition
providing comprehensive revenue forecasts
providing budget orientation and training to all
departments
monitoring budget throughout the year and providing
updates to the City Manager and City Council
OVERVIEW OF CITY BUDGET PROCESS
The City’s annual budget process commences in February with the distribution of the updated Budget Manual that details the City’s general budgetary policy and the specific goals and objectives for the upcoming fiscal year. Departments are given specific instructions and timelines, the City’s chart of accounts, a rate schedule for apportioned cost s such as liability and health insurance, and budget forms and formats.
Each department head is required to select a responsible individual in the department to be the Budget Coordinator. Following the budget kickoff by
the City Manager and Director of Administrative Services , all correspondence and meetings are conducted with the departments’ Budget Coordinators and the Finance Budget Team.
In March, the Director of Administrative Services provides the City Manager with the tentative General Fund Revenue Projections. These set the parameters for the development of a budget. In turn, the preliminary departmental budget worksheets are returned to the Fiscal Resources Division with instructions for modified expenditure requests based upon the available monies projected.
Target Budget Requests: It is the responsibility of each department to submit, as part of the budget request to the City Manager, a complete Statement of Justification. The statement must provide a formal and comprehensive explanation and justification of the proposed departmental budget program. This is important because the initial budget request submitted by each department is based on maintaining the current level of service. The “Target Budget” provides a point of origin for the detailed study and evaluation of each budget request by the City Manager compared to available revenue. The Target Budget has four basic components:
1. Proposed Work Plan: Department and program narratives, major accomplishments for fiscal year ending, major goals and objectives for the new fiscal year, workload/performance indicators and projected revenues/cost recovery from
department programs.
2. Proposed Staffing Plan: Departmental organization chart, personnel worksheets (benefits calculations), personnel schedules, staffing levels, and personnel by program activity.
3. Proposed Spending Plan: Department line- item worksheets, expenditure request worksheets, justification statements (if required), computer repair and replacement fund summary and capital expenditures one- year request and justification statement.
4. Revenue Projections: Department revenues based on the fees collected as part of the department’s operation. Emphasis 16 BUDGET PROCESS
is placed on maximizing cost recovery as appropriate and justification for new or increase in existing fees.
Supplemental Budget Requests: Separate from the Target Budgets, departments submit a “wish list” of additional personnel, new or replacement equipment, or funding for new or expanded programs. All Supplemental Budget Requests are reviewed jointly with priority given to funding requests that best meet the objectives for the fiscal year and improve services across departmental lines. Unfunded requests are set aside until additional funding can be identified. This process will be expanded over the next fiscal year with a goal of developing a multi -year budgeting plan for rebuilding staffing levels, equipment replacement and program expansion.
Capital Outlay Requests: Capital requests are submitted separately with priority given to the replacement of aging and outdated equipment.
With the establishment of the “Technology” fund in 2002 to protect the City’s investment in technology by ensuring funds to properly maintain and replace equipment when needed. This is funded through departmental contributions based on a usage formula.
City Manager’s Review: At the end of April, the City Manager reviews a draft budget summary presented by the Director of Administrative Services. Following the review and approval, the Proposed Budget, or City Manager’s Budget as it is sometimes called, is finalized and printed for distribution. Much of the focus of the annual budget process is on General Fund programs since this is the only funding area that is fully discretionary. Grant funded programs follow a similar process but are more specifically directed by the regulations of the particular funding source. The City’s adopted budget incorporates all City programs and specifically identifies the funding source for each.
Preliminary Budget: In May, a preliminary budget document is created, and the City Manager meets independently with each department head to review the department’s goals, objectives, programs and funding needs for the upcoming fiscal year. It is also the department head’s opportunity to ensure that all the needs of his/her department are understood and carefully considered in the allocation of funds.
Budget Hearing:
A public workshop hearing is held approximately one
month before the a doption of the City’s budget for the upcoming fiscal year. The City Manager presents to the Council the overall goals and objectives for the fiscal year, along with a review of significant factors affecting proposed revenues and expenditures.
Public comment is heard throughout the month and revisions may be made to the budget as directed by the City Council.
Adoption: City Council shall adopt the budget by Resolution at the conclusion of the budget hearings. The adoption of the budget must occur prior to July 1, which is the beginning of the new fiscal year.
Budget Control and Amendments : Since the budget is a planning document, throughout the fiscal year there may be a need for adjustments in the spending plan. As new revenues are identified, or unexpected expenditures arise, departments may need to re- prioritize the expenditure plan for their operations. If the modification can be made within the department’s approved appropriation, then the Department Head may make a written request for a budget transfer to reallocate funds as needed. The budget transfer request is sent to Fiscal Resources for review and approval. Accounting staff verifies that funds are available as requested, and the Director of Administrative Services approves the transfer. However, if the department is unable to make the needed adjustments within their department appropriation, additional approval is needed. The City Manager is authorized to transfer funds between departments. However, additional appropriation must have the approval of the City Council.
17 BUDGET CALENDAR - FISCAL YEARS 2026/27 & 2027/28 BUDGET
February 12, 2026 Distribution of the budget packets to all departments March 16, 2026 Department supplemental requests due to Finance for review. New grants or revenue sources due to Finance.
Week of March 30, 2025
During this period , Finance staff w ill review the supplemental requests with each department, developing a plan of action for the FY 2026/27 & FY 2027/28 performance goals and narratives.
Update the CIP projects and develop the CIP budgets.
April 13, 2026 Finance updating personnel worksheets and revenue estimates Week of April 20, 2026 City Manager meets with Department Directors to discuss supplemental budget requests Week of May 4, 2026 Finance Review/Update Internal Service Funds and develop/update CIP budget May 26, 2026 Proposed Biennial Budget FY 2026/27 & FY 2027/28 presented to City Council and the public for review May 22, 2026 -
June 23, 2026 Public Review period for FY 2026/27 & FY 2027/28 Proposed Budget June 11, 2026 Community Budget Forum
June 23, 2026 Budget Public Hearing and Adoption of Budget FY 2026/27 & FY 2027/28
18 BUDGET DOCUMENT GUIDE
The “Adopted Budget” is the document that sets the expenditure policies for all monies received by the City. The budget is based on a “fiscal year” that begins each year on July 1 and ends twelve- months later on June 30. City staff develops a proposed budget under the direction of the City Manager. The “Proposed Budget” is presented at a Public Hearing with the City Council for consideration.
The City Council makes whatever changes they deem appropriate and vote to adopt the budget for the next fiscal year.
The budget is designed to give the City Council a clear roadmap of the City’s expenditure needs and available resources so that the Council can make sound budgetary decisions. It is through the appropriation of funds that the Council sets the program and project priorities for the ensuing fiscal year . This one-year budget is presented to the City Council for consideration. This proposed amended budget will cover fiscal year 2025-2026.
The budget document begins with the City Manager’s budget message, which provides an overview of the Fiscal Year Operating Budget by highlighting programs and major projects. Economic factors, changes in revenue, expenditures, and staffing levels are also addressed in the budget message. The budget document is divided into the following sections:
Budget Message
Introduction
Budget Summaries
Operating Budget – General Fund with corresponding
Special Revenue Funds
Operating Budget – Enterprise Funds
Debt Service Funds
Internal Service Funds
Capital Improvement Program
Appendix
The Budget Summaries section provides revenue and expenditure analysis. This section presents historical data for comparative purposes along with staffing levels.
The Operating Budgets section contains program description and public service goal s. All Special Revenue Funds are grouped by operating department to provide a complete picture of department resources and functions.
The Appendix section contains the glossary of terms , abbreviations and acronyms, and index.
19 CITY OF GARDENA FUND STRUCTURE
BUDGETARY FUNDS
Governmental Funds Proprietary Funds
General Fund
Major Fund
(See description)
Debt Service
Funds
Enterprise
Funds
Internal Service
Funds
Special Revenue
Funds
Capital
Improvement
Funds - Major
GTrans
Major Fund
(See description)
Sewer
Fund
–Self Insurance Liability
–Self Insurance Workers Comp
–Self Insurance Health Benefit
–2006 A Refunding COPs
–2007 A Refunding Revenue Bonds
–2014 Taxable Lease Revenue Refunding Bonds
–2020 Taxable Pension Obligation Bond
–2021 Lease Revenue Bond
–Bicycle & Pedestrian Program
–Caltrans
–Department of Transportation
–Measure M – Local
–Measure R – Local
–Measure A
–PROP C Local Return
–SB1
–Metro Regional
–PROP 68
–Park Land In Lieu
–State Earmarks
–Asset Seizure – Federal and Non-Federal
–California Office of Traffic Safety (OTS)
–Community Development Block Grants
–Consolidated Street Lighting District
–Department of Justice (DOJ)
–Federal Earmarks
–FEMA COVID-19
–Police Department Grants
–Post Employment Benefits Fund
–Senior Bureau Grants
–South Coast AQMD
–State Gas Tax
–Supplemental Law Enforcement (SLESF)
A major fund is classified as any fund which is at least 10% of the total appropriation 20 FUND DESCRIPTIONS
GENERAL FUND (Major Fund)
The General Fund is the chief operating fund of the City and the only totally unrestricted fund that can be used for general operating expenses such as public safety, parks, recreation, engineering, planning and administration .
SPECIAL REVENUE FUNDS (Grants)
Currently the City receives additional funding from various sources to provide many services which otherwise would be impossible for the City to support. Special revenue funds are restricted to a specific purpose and for a certain time frame. Continued or new funding is based on the federal, state or county which is providing the resources. The City is always seeking new grants for the betterment of the citizens and community .
Following is a description of the major grant funding that the City receives.
Artesia Landscaping District: To account for monies received for the maintenance of medians on Artesia Boulevard.
American Rescue Plan: Funding to address the devastating economic and health effects of the COVID-19 pandemic.
Asset Seizure: Monies seized from criminal activities and used solely for law enforcement purposes.
Community Development Block Grant (CDBG): The CDBG program works to ensure decent affordable housing, to provide services to the most vulnerable citizens in our communities, and to create jobs through the expansion and retention of businesses. This f ederal funding is received through the Department of Housing and Urban Development ( HUD) and is an important tool for assisting local government in tackling the serious economic challenges facing the community.
Consolidated Street Lighting: To account for monies received for the maintenance and improvement of streetlights.
Federal Earmarks: Fund provided by legislators for projects or programs that curtail the ability of the Executive Branch to manage critical aspects of the funds allocation process.
FEMA COVID-19: This Treasury Department allocation provides funding to local government to support the public health response and lay the foundation for a strong and equitable economic recovery.
Gardena Family Childc are: This grant provides low-cost childcare to low -moderate income families as well as offering early education and development classes. This program through Cal SAFE also helps pregnant and parenting students and their children. These programs are funded through the California Department of Education.
Measure A: To account for monies received for the improvement of parks and open spaces from the Los Angeles County Regional Park and Open Space District or RPOSD.
Measure M: To account for monies received for the improvement of freeway traffic flow; expand the rail and rapid transit system; repave local streets, repair potholes, and synchronize signals; and to make public transportation more accessible, convenient, and affordable.
21 FUND DESCRIPTIONS
Measure R: To account for monies received for the improvement of local street traffic flow; repave local streets, repair potholes, and synchronize signals; and to make public transportation more accessible, convenient, and affordable.
Measure W: To account for monies received from the Los Angeles County for the improvement of water quality and stormwater infrastructure initiatives.
Police Grants: The Department of Justice, the California Office of Traffic Safety, and the Supplemental Law Enforcement Program provide funding to improve public safety. Grant funding pays for additional officers, improved technology, DUI checkpoints, gang enforcement programs, and pedestrian safety programs. Funding from these grants helps to promote public safety and awareness.
Post-Employment Benefits Fund: This fund was set up to account for the City’s Other Post- Employment Benefits it pays to retired employees.
Prop 68: To account for monies received from the Statewide Park Development and Community Revitalization Program (SPP) administered by OGALS or Office of Grants and Local Services to create new parks and recreation opportunities in underserved communities across California.
Prop C: To account for monies received for the reduction of local street traffic congestion; improve air quality; repave local street s and repair potholes; and to make public transportation more accessible, convenient, and efficient.
Public Works Regional Grants: The California Department of Transportation and the Los Angeles County Metro provide funding to improve pedestrian safety, traffic light enhancements, and street improvements.
Senate Bill 1 (SB 1): To account for monies received for the maintenance and rehabilitation and safety improvements on state highways, local streets and roads, and bridges and to improve the state’s trade corridors, transit, and active transportation facilities.
Senior Bureau Grants: In 1965 the federal government passed the Older Americans Act to provide grant funding for programs which benefit seniors. This includes nutrition programs in the community and for those who are homebound; programs for low -income minority elders; health promotion and disease prevention activities; in- home services for frail elders, and those services which protect the rights of older persons such as the long-term care ombudsman program.
South Coast AQMD Fund: To account for monies received from motor vehicle tax and expended on programs to reduce air pollution which are necessary to implement the California Clean Air Act of 1988.
State Gas Tax: To account for monies received and expended from the state and county gas tax allocation.
State Earmarks: Fund provided by legislators for projects or programs that curtail the ability of the Executive Branch to manage critical aspects of the funds allocation process.
Traffic Safety: To account for monies received under Section 1463 of the Penal Code and expended on traffic safety.
22 FUND DESCRIPTIONS
CAPITAL IMPROVEMENT FUNDS
Are used to account for financial resources used for capital improvement projects.
DEBT SERVICE FUNDS
Are used to account for the accumulation of resources and payment of all general long- term debt obligations of the City.
PROPRIETARY FUNDS
A proprietary fund accounts for business type activities of the City that receive a significant portion of funding through user charges with the intent to fully recover the cost of service. The Enterprise and Internal Services Funds are proprietary type funds.
Enterprise Funds:
GTrans (Major Fund) accounts for user charges, fees, federal, state and county grants and all operating costs associated with the operation of the City’s bus lines. Although the GTrans is a separately operating enterprise fund, it is still operationally a department of the City.
Sewer Fund accounts for fees charged to users of the City’s sewer system. The fee is based upon the amount of domestic water used. The revenue is used to replace, rehabilitate, maintain, and improve the City’s sewer system.
Internal Service Funds:
The Internal Service Funds account for financing of goods or services provided by one City department to other departments of the City on a cost-reimbursement basis and consist of the following funds:
Self-Insurance Liability Fund
Self-Insurance Workers’ Compensation Fund
Self-Insurance Health Benefit Fund
FIDUCIARY FUNDS
Account for assets held by the City in a trustee capacity. Fiduciary funds are normally not budgeted because typically the trust agreement or law already provides adequate control over the trust fund resources. 23 ACCOUNTING PRINCIPLES AND POLICIES
FUND ACCOUNTING
The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures as appropriate. Government resources are allocated to, and accounted for, in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The financial section in this budget is grouped by generic fund types and broad fund categories as follows:
Governmental Funds Proprietary Funds
General Fund Enterprise Funds
Special Revenue Funds Internal Service Funds
Capital Improvement Fund
Debt Service Funds
BASIS OF ACCOUNTING AND BUDGETING
The City’s Governmental Fund Types (General, Special Revenue, Debt Service and Capital Projects Funds) are accounted for and budgeted using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets. Revenue considered susceptible to accrual includes property taxes, sales taxes, interest and motor vehicle license fees.
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to the general rule is compensated absences not payable within one year, and interest and principal on long- term debt which are recorded when due.
Proprietary Fund Types are accounted for on an “income determination” or “cost of services” measurement focus. Accordingly, all assets and all liabilities are included on the balance sheets, and the reported fund equity (total reported assets less total reported liabilities) provides an indication of the economic net worth of the funds. The operating statements for the City’s Proprietary Fund Types report increases (revenues) and decreases (expenses) in total economic net worth. All Proprietary Fund Types are accounted for and budgeted using the accrual basis of accounting. Revenues are recognized when earned, and expenses are recognized when incurred.
FINANCIAL POLICIES
The following financial policies represent the long- standing principles and traditions which guide the City in its fiscal decisions.
FINANCE COMMITTEE
The City’s Finance Committee is comprised of two c ouncilmembers, (appointed by the Mayor) and the City Treasurer. The Committee meets quarterly with the City Manager to review and make recommendations on the City’s budget, debt, and other financial actions.
AUDITING AND FINANCIAL REPORTING
• California state statute requires an annual audit of the books of account, financial records and transactions of all administrative departments of the City by Independent Certified Public Accountants.
• The City will produce annual financial reports in accordance with Generally Accepted Accounting Principles (GAAP) as outlined in Governmental Accounting, Auditing and Financial Reporting (GAAFR).
REVENUE POLICY
• The City will try to maintain a diversified and stable revenue system to shelter it from short run fluctuations in any one- revenue source.
24 ACCOUNTING PRINCIPLES AND POLICIES
• The City will follow an aggressive policy of collecting revenues as established in 2002 using the City’s cashiering system. • The City will establish all user charges and fees at a level closely related to the full cost (operating, direct, indirect and capital) of providing the service. The City will continue to review fees/charges periodically.
INVESTMENT OF IDLE FUNDS
• The safeguarding of all public monies shall be of the highest priority. Public money shall not be invested or managed in any manner, which would jeopardize the safety of the principal pursuant to California Government Code Section 53635.
• The City’s investment policy is reviewed and approved annually by the City Council.
• Direct responsibility for managing the City’s investment portfolio rests with the City Treasurer.
• All investments are made in accordance with the following criteria, stated in order of priority: safety, liquidity and yield.
PURCHASING POLICY
• The City’s departments will purchase the best value obtainable, securing the maximum benefit for each tax dollar expended, while giving all qualified vendors an equal opportunity to do business with the City.
• All purchases with a total cost over $50,000 must be procured by a formal bid and can only be authorized and awarded by the City Council.
• Whenever possible, local vendors shall be included as sources for all purchases.
RISK MANAGEMENT POLICY
• The City is self -insured against each general liability claim for the first $ 750,000 and each workers’ compensation claim for the first $500,000 and $750,000 for each GTrans claim against the City. The City carries insurance in excess of these amounts.
• The City’s role in managing its risk management program is to be pr oactive, in nature, which will be accomplished through careful monitoring of losses, working closely with the third -party administrator and designing and implementing programs to minimize risk and reduce losses.
FIXED ASSET POLICY
• To safeguard the investment in fixed assets.
• To use the fixed asset system as a management tool for replacement of recurring items to avoid duplication and inefficient use of fixed assets.
• To comply with state laws and regulations.
• To provide information for preparation of financial statements in accordance with GAAP with emphasis placed on completion of GASB 34 requirements.
• When disposing of fixed assets , every effort should be made to recover some of the original cost by selling and or trading in the fixed asset.
CAPITAL IMPROVEMENT POLICY
• The City will develop a multi -year plan for capital
improvements, update it annually and make all capital
improvements in accordance with this plan.
• Immediate capital replacement needs and smaller capital projects are funded on a pay -as-you-go basis through a budget transfer.
25 ACCOUNTING PRINCIPLES AND POLICIES
• Capital improvements involve the outlay of substantial funds; therefore, the City prioritizes the use of non- general fund monies to support these expenditures.
DEBT POLICY
• To provide for proper planning of capital expenditures, financing requirements and guidelines for issuance of various debt instruments.
• To hold borrowing costs at a minimum and maintain ratios within established standards.
• To secure favorable ratings and competitive lower interest rates on all types of borrowing instruments, thereby providing a savings to all taxpayers.
BORROWING INSTRUMENTS
• Tax and Revenue Anticipation Notes to be issued no more than once a year. Maximum maturity of notes will be twelve months from date of issue. Notes will be rated by Moody’s Investor Service, Standard and Poor’s Ratings Group or Fitch Investors Service, L.P.
• Certificates of Participation (COPS) can be used as a financial alternative for acquiring assets.
• Revenue Bonds – City Council will evaluate all requests. • Mello-Roos financing – City Council will evaluate all requests.
BUDGET – GENERAL POLICY
• City staff will present to the City Council a structurally balanced budget proposal that does not rely on “one- time” revenues .
Annual recurring expenditures will be funded with annual recurring revenues.
• The City Council will , by June 30 of each year , adopt a structurally balanced operating and capital improvement spending plan for the ensuing fiscal year , where operating revenues are equal to, or exceed, operating expenditures. • The City will align and amend as appropriate its operating and capital spending plan with its strategic action plan priorities and economic development plan.
• City staff will complete and present a quarterly Budget and Economic Condition Analysis to the Finance Committee.
Recommended budget adjustments will be submitted to the City Council for consideration and approval.
• The City will establish and maintain a General Fund Reserve equal to at least twenty -five percent ( 25%) of its annual General Fund operating budget. The amount will be revised annually and such funds will be expended only with the
approval of the City Council.
BUDGET – REVENUE
• Revenue projections will be based on multiple sources of information including, but not limited to , historical trends, federal, state and regional economic forecasts, service levels, changes in legislation and mandates and other statistical resources generally available.
• The City will develop and incorporate into each spending plan revenue and expenditure projections for five (5) additional years into the future and amend the projection annually as part of the budget review.
• When projecting revenues, the City will take into consideration the diversity, volatility and stability of its revenue stream and will as much as possible base its core operating cost on historically stable revenue sources.
26 ACCOUNTING PRINCIPLES AND POLICIES
• The City will stabilize its revenue base by forecasting its annual operating expenditures on diverse revenue sources and limiting revenue growth projections in each revenue category.
• Revenues received in excess of the budgeted projections will be used for one-time expenditures or set aside as reserve.
BUDGET – EXPENDITURES
• Expenditures will be budgeted realistically for each expenditure category and can be adjusted internally as may become
necessary but will not exceed appropriation limits.
• Contingency funds will be included in the annual budget to provide funding for unanticipated operating cost increases, one-time purchasing opportunities and one- time emergency expenditures to repair equipment and facilities. Unexpended funds will carry-over to the next fiscal year.
• In considering reductions in service levels, program cuts, or staffing reductions, the city will first assess options to improve operational efficiencies and develop additional revenues to cover the cost to continue the existing level of public service with existing Budget Policies.
• Limiting Cost with Fees for Service: Certain services are used selectively by a limited number of participants and, therefore, are not mandated City services. These services are provided based on individual interest and are provided only as funding is available. To fund these programs without limiting basic services necessary for the general public, the City will perform a cost analysis to identify the city’s fully burdened cost for providing those services and , to the extent reasonable, set the fee based on full cost recovery. Such fees shall be updated frequently to ensure that the fees are reflective of actual city costs for the delivery of services.
• Unexpended funds within a fiscal year will be held in reserve or appropriated for one-time expenditures.
BUDGET – CAPITAL IMPROVEMENT
• Capital improvements will be financed primarily through special revenue funds, user fees, service charges, and developer agreements when benefits can be speci fically attributed to users of the facilities.
• The City will analyze the impact of capital improvements to ensure that operational and maintenance costs are balanced with on- going revenue to support facility operations.
27 PROPOSED
BUDGET SUMMARIES
FY 2026/27 & FY 2027/28
28 Revenue Sources General Fund % of Total Department Expenditures General Fund % of Total Sales and Use Tax 31,198,068$ 34.70% Police 36,029,098$ 40.12% Card Club Gross Revenue Fees 6,623,877$ 7.37% Public Works 7,849,822 8.74% Property Tax 11,673,281$ 12.98% Recreation & Human Services 6,991,219 7.78% Vehicle License Fees 9,820,568$ 10.92% Community Development 3,552,957 3.96% Utility Users Tax 7,741,353$ 8.61% Administrative Services 3,616,371 4.03% Business License Tax 3,073,260$ 3.42% Elected and City Manager's Offices 2,859,122 3.18% Franchise and Other Taxes 5,764,835$ 6.41% Non-Departmental including Fire and RCC 15,976,393 17.79% License and Permits 1,800,781$ 2.00% Transfers Out 12,937,096 14.40% Fines and Forfetuires 886,962$ 0.99% TOTAL EXPENDITURES 89,812,078$ 100. 00% Investment Income 1,485,305$ 1.65%
Intergovernmental 575,538$ 0.64%
Current Service Charge 2,502,800$ 2.78%
Other Revenue 512,036$ 0.57%
Transfer In 3,162,259$ 3.52%
Charges to Other Funds 3,085,057$ 3.43%
TOTAL REVENUES 89,905,980$ 100.00%
GENERAL FUND REVENUE and EXPENDITURES 2026/2027
WHERE THE MONEY COMES FROM… WHERE THE MONEY GOES…
Police, 40.12%
Public Works,
8.74%
Recreation &
Human Services,
7.78%
Community
Development,
3.96%
Administrative
Services, 4.03%
Elected and City
Manager's Offices,
3.18%
Non-Departmental
including Fire and
RCC, 17.79%
Transfers Out,
14.40%
Sales and Use Tax,
34.70%
Card Club
Gross
Revenue
Fees, 7.37%
Property Tax,
12.98%
Vehicle License Fees,
10.92%
Utility Users Tax,
8.61%
Business License
Tax, 3.42%
Franchise and Other
Taxes, 6.41%
License and Permits,
2.00%
Fines and
Forfetuires, 0.99%
Investment
Income, 1.65%
Intergovernmental,
0.64%
Current Service
Charge, 2.78%
Other Revenue,
0.57%
Transfer In, 3.52%
Charges to Other
Funds, 3.43%
Other, 12.59%
29 Revenue Sources General Fund % of Total Department Expenditures General Fund % of Total Sales and Use Tax 33,053,741$ 34.89% Police 38,221,256$ 40.38% Card Club Gross Revenue Fees 4,000,000$ 4.22% Public Works 8,271,068 8.74% Property Tax 12,140,212$ 12.82% Recreation & Human Services 7,308,416 7.72% Vehicle License Fees 10,311,597$ 10.89% Community Development 3,755,916 3.97% Utility Users Tax 8,171,287$ 8.63% Administrative Services 3,835,436 4.05% Business License Tax 3,134,725$ 3.31% Elected and City Manager's Offices 3,208,808 3.39% Franchise and Other Taxes 5,975,669$ 6.31% Non-Departmental including Fire and RCC 16,860,102 17.81% License and Permits 1,836,797$ 1.94% Transfers Out 13,181,576 13.93% Fines and Forfetuires 913,571$ 0.96% TOTAL EXPENDITURES 94,642,578$ 100.00% Investment Income 1,399,464$ 1.48%
Intergovernmental 592,804$ 0.63%
Current Service Charge 2,634,549$ 2.78%
Other Revenue 512,036$ 0.54%
Transfer In 6,962,259$ 7.35%
Charges to Other Funds 3,085,057$ 3.26%
TOTAL REVENUES 94,723,768$ 100.00%
GENERAL FUND REVENUE and EXPENDITURES 2027/2028
WHERE THE MONEY COMES FROM… WHERE THE MONEY GOES…
Police, 40.38%
Public Works,
8.74%
Recreation &
Human Services,
7.72%
Community
Development,
3.97%
Administrative
Services, 4.05%
Elected and City
Manager's Offices,
3.39%
Non-Departmental
including Fire and
RCC, 17.81%
Transfers Out,
13.93%
Sales and Use Tax,
34.89%
Card Club Gross
Revenue Fees,
4.22%
Property Tax,
12.82%
Vehicle License Fees,
10.89%
Utility Users Tax,
8.63%
Business License
Tax, 3.31%
Franchise and Other
Taxes, 6.31%
License and Permits,
1.94%
Fines and
Forfetuires, 0.96%
Investment
Income, 1.48%
Intergovernmental,
0.63%
Current Service
Charge, 2.78%
Other Revenue,
0.54%
Transfer In, 7.35% Charges to Other
Funds, 3.26%
Other, 16.03%
30 Revenues and Other Sources:
Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Change in $
Proposed 26-27 vs
Proposed 27-28
Change in %
Proposed 26-27 vs
Proposed 27-28
Taxes 72,234,462 73,486,609 75,895,242 76,787,231 891,989 1.2% Licenses and Permits 1,967,596 2,127,013 1,800,781 1,836,797 36,016 2.0% Fines and Forfeitures 1,017,194 861,128 886,962 913,571 26,609 3.0% Use of Money & Property 3,382,580 880,000 1,485,305 1,399,464 (85,841) -5.8% Intergovernmental 501,611 558,775 575,538 592,804 17,266 3.0% Current Service Charges 2,384,474 2,940,907 2,502,800 2,634,549 131,749 5.3% Other Revenue 591,028 512,036 512,036 512,036 - -
Charges to Other Funds 3,030,213 3,085,057 3,085,057 3,085,057 - - Transfer In 3,604,426 2,953,259 3,162,259 6,962,259 3,800,000 120.2% Total Revenues 88,713,583 87,404,784 89,905,980 94,723,768 4,817,788 5.4% Expenditures:
Salaries and Benefits 47,316,475 53,182,522 51,183,821 54,586,987 3,403,166 6.6% Materials and Operations 24,468,575 25,717,309 25,490,661 26,696,615 1,205,954 4.7% Capital Outlay 547,387 324,500 200,500 177,400 (23,100) -11.5% Fund Transfers 15,753,058 8,107,407 12,937,096 13,181,576 244,480 1.9% Total Expenditures 88,085,495 87,331,738 89,812,078 94,642,578 4,830,500 5.4% Net Change in Fund Balance 628,088 73,046 93,902 81,190 (12,712) -13.5% Fund Balances - Beginning 33,490,618 34,118,707 34,191,753 34,285,655 Fund Balances - Ending 34,118,707 34,191,753 3 4,285,655 3 4,366,845 8 1,190 0.2%
GENERAL FUND HISTORICAL REVENUE AND EXPENDITURE SUMMARY 31 GENERAL FUND
–
FUND BALANCE
City established a 25% General
Fund Reserve Policy
32 GENERAL FUND TOP 5 REVENUES
0 5
10 15
20 25
30 35
Audited
2023-24 Audited
2024-25 Adopted
2025-26 Proposed
2026-27 Proposed
2027-28
Card Club Revenue Fee $4.0M
Property Taxes $12.1M
Vehicle License Fee $10.3M
Sales & Use Tax $33.1M
Utility Users Tax $8.2M
In Millions USD – Amount above is for Fiscal Year 2027-28 33 2024-2025 2025-2026 2026-2027 2027-2028
Audited Adopted Proposed Proposed
TAXES (001)
3101-3105 Property Taxes 10,836,409$ 11,176,231$ 11,673,281$ 12,140,212$ 3106 Sales and Use Tax 28,214,603$ 27,973,537$ 31,198,068$ 33,053,741$ 3107-09, 3112-13 Franchise Taxes 2,432,159$ 2,520,347$ 2,544,342$ 2,657,534$ 3110 Documentary Stamp Tax 196,384$ 233,484$ 253,484$ 238,484$ 3115-3116 Business License Tax 3,153,491$ 3,013,000$ 3,073,260$ 3,134,725$ 3117 Card Club Gross Revenue Fees 8,808,950$ 9,166,202$ 6,623,877$ 4,000,000$ 3118 Utility Users Tax 6,829,968$ 7,167,001$ 7,741,353$ 8,171,287$ 3119 Franchise Utility 1,140,092$ 1,311,788$ 1,351,141$ 1,418,698$ 3121 Hotel/Motel Tax 1,521,081$ 1,459,036$ 1,502,807$ 1,547,891$ 3122, 3349 Property Tax - Homeowner Tax Relief 37,745$ 38,061$ 38,061$ 38,061$ 3345 Motor Vehicle License In-Lieu 96,030$ 75,000$ 75,000$ 75,000$ 3346-3348 Vehicle License/Licenses In-Lieu 8,967,550$ 9, 352,922$ 9, 820,568$ 10, 311,597$ TOTAL TAXES 72,234,462$ 73,486,609$ 75, 895,242$ 76, 787,230$ LICENSES & PERMITS (002)
3218-3220 Special and Entertainment Permits 164,416$ 181,975$ 172,637$ 176,090$ 3222-3232 Building and Other Permits 1,645,741$ 1,845,038$ 1,464,401$ 1,493,689$ 3234-3235 Appeals and Administration Fees 151,184$ 100,000$ 158,743$ 161,918$ 3473,3237 Fireworks and CCW Fees 6,254$ -$ 5,000$ 5,100$ TOTAL LICENSES and PERMITS 1,967,596$ 2,127,013$ 1, 800,781$ 1, 836,797$ FINES & FORFEITURES (003)
3533-3535 Administrative Citation and Parking Fines 1,002,990$ 831,128$ 856,962$ 883,571$ 3536-3538 Court Fines 14,205$ 30,000$ 30,000$ 30,000$ TOTAL FINES and FORFEITURES 1,017,194$ 861,128$ 886, 962$ 913, 571$ INVESTMENT INCOME (004)
3640 Interest on Investments 2,300,863$ 750,000$ 1,330,305$ 1,244,464$ 3641-3644 Rents and Concessions 197,046$ 105,000$ 105,000$ 105,000$ 3645 Fair Market Value on Investments 884,671$ 25,000$ 50,000$ 50,000$ 3646 Other Investment Income -$ -$
TOTAL INVESTMENT INCOME 3,382,580$ 880,000$ 1, 485,305$ 1, 399,464$ FROM OTHER AGENCIES (005/006/007)
3311 Public Safety Augmentation 463,573$ 474,075$ 489,197$ 503,873$ 3375-3376 STC Reimbursement/POST Reimbursemen 10,722$ 24,229$ 24,956$ 25,705$ 3378 Mandated Cost Reimbursement 620$ 30, 000$ 30, 000$ 30, 900$ 3383-88,3772,3391 Other Reimbursements 26,697$ 30,471$ 31,385$ 32,326$ TOTAL FROM OTHER AGENCIES 501,611$ 558,775$ 575, 538$ 592, 804$ Revenue Sources
GENERAL FUND REVENUES BY ACCOUNT
FOUR-YEAR COMPARISON
FISCAL YEARS ENDING 2025-2028
34 2024-2025 2025-2026 2026-2027 2027-2028
Audited Adopted Proposed ProposedRevenue Sources
GENERAL FUND REVENUES BY ACCOUNT
FOUR-YEAR COMPARISON
FISCAL YEARS ENDING 2025-2028
CURRENT SERVICE CHARGES (008)
3401-3402 Public Service Impact -$ -$ -$ -$
3403-04, 3454 Business Registration Fee/Inspect Fee 43,061$ 2,000$ 162,000$ 162,000$ 3406 Trucking Impact Fee 15,681$ 15,000$ 10,000$ 10,000$ 3407 ATM Commission 22$ -$ -$ -$
3409 Passport Fees 7,925$ 10,000$ 10,000$ 10,000$
3411 Tipping Fees - CDS Refuse 138,619$ 190,000$ 150,000$ 150,000$ 3418-31, 3470 Recreation Fees 359,419$ 526, 500$ 334, 000$ 359, 000$ 3433-3435 Industrial Waste/Strong Motion/Runoff Fees 199,032$ 333,307$ 240,000$ 250,000$ 3450-3453 Planning - Fees 540,828$ 700, 000$ 580, 000$ 640, 000$ 3455-3459 Miscellaneous Fees (Public Works) 15,800$ 55, 800$ 15, 800$ 15, 800$ 3466 Sewer Connection Fees 5,149$ 35, 000$ 30, 000$ 30, 000$ 3475 Police Towing Admin Fees 178,100$ 162, 300$ 135, 000$ 141, 750$ 3491 Police Services Bus Lines 351,471$ 400, 000$ 350, 000$ 380, 000$ 3462, 3482 Miscellaneous Fees (Police Department) 69,285$ 80, 000$ 80, 000$ 80, 000$ 3405, 3432-38, 3463-90 Other 200,628$ 141, 000$ 116, 000$ 116, 000$ 3492 Franchise - Admin Fees (AB939) 259,456$ 290, 000$ 290, 000$ 290, 000$ TOTAL CURRENT SERVICE CHARGES 2,384,474$ 2,940,907$ 2, 502,800$ 2, 634,550$ OTHER REVENUE (009)
3701 Franchise - Community Support 42,500$ 50, 000$ 50, 000$ 50, 000$ 3770 Sale of Real or Personal Property 78,574$ 10, 000$ 10, 000$ 10, 000$ 3705,3771-3787, 3789 Miscellaneous 301,099$ 152, 036$ 152, 036$ 152, 036$ 3760, 3791 CIP and Engineering Costs Reimbursed 168,855$ 300, 000$ 300, 000$ 300, 000$ 3901-3902,3996,3997 Other Financing Sources -$ -$ -$
TOTAL OTHER REVENUE 591,028$ 512,036$ 512,036$ 512,036$ 82,078,945$ 81,366,468$ 83,658,664$ 84,676,452$ CHARGES TO OTHER FUNDS (084) 3,030,213$ 3,085,057$ 3,085,057$ 3,085,057$ FUNDS TRANSFERRED IN (089) 3,604,426$ 2,953,259$ 3,162,259$ 6,962,259$ .
88,713,583$ 87,404,784$ 89,905,980$ 94,723,768$
TOTAL REVENUES
TOTAL GENERAL FUND
35 OPERATING BUDGET FY 2025-26 FY 2026-27 F 2027-28 FY 2028-29 Revenues⁴ 87,786,594 92,113,939 99,555,604 104,053,986
Revenue Loss Due to Casino Regulations¹ (2,207,959) (4,831,836) (5,331,836) Operating Revenues 87,786,594 89,905,980 94,723,768 98,722,150 Operating Expenditures² ³ (87,633,389) (89,812,078) (94,642,578) (98,703,200) Operating Surplus / (Deficit) 153,204 93,902 81,190 18,950 Ending General Fund Balance 34,271,910 34,365,812 34,447,002 34,465,952 Balance % of Operating Expenditures 39.1% 38.3% 36.4% 34.9% 1 Does not include recession scenarios and assumes that Hustler Casino will continue to operate in the City 3 Assumes that CalPERS will meet its investment return of 6.8% per fiscal year 4 Assumes successful passage of Measure GG (0.25%) by Fiscal Year 2026-2027
CITY OF GARDENA
General Fund Long-Range Budget Planning
2 Assumes same staffing level and additional fire protection services payment starting FY 2027-28 Fiscal Year 2025-26 to Fiscal Year 2028-2029
BASELINE PROJECTION
36 TRANSFERS TOTAL TRANSFERS TOTAL
REVENUES IN REVENUES EXPENDITURES OUT EXPENDITURES
General 34,191,753$ 86,743,721$ 3,162,259$ 89,905,980$ 76,874,982$ 12,937,096$ 89,812,078$ 34,285,655$ General Fund 34,191,753 86,743,721 3,162,259 89,905,980 76,874,982 12,937,096 89,812,078 34,285,655 General Liability (2,181,342) 1,689,873 1,247,872 2,937,745 3,861,974 9,303 3,871,277 (3,114,874) Workers' Compensation (8,356,569) 2,023,604 800,000 2,823,604 2,862,694 14,578 2,877,272 (8,410,237) Health Benefits 4,884,923 13,255,867 3,934,689 17,190,556 15,239,031 2,505,061 17,744,092 4,331,387 Internal Services Funds (5,652,988) 16,969,344 5,982,561 22,951,905 21,963,699 2,528,942 24,492,641 (7,193,724) 2006 Series A & B Refunding 1,931,614 - 1,021,096 1,021,096 1,021,096 - 1,021,096 1,931,614 2014 Taxable Lease Rev Ref Bonds 2 - 504,048 504,048 504,048 - 504,048 2 2007A Refunding Rev Bonds 229,796 - 188,975 188,975 188,975 - 188,975 229,796 Taxable Pension Obligation Bonds 2020 71,213 - 6,102,051 6, 102,051 6,102,051 - 6,102,051 71,213 Lease Revenue Bonds, 2021 (868,504) - 945,650 945,650 945,650 752,082 1,697,732 (1,620,586) Debt Service Funds 1,364,120 - 8,761,820 8,761,820 8,761,820 752,082 9,513,902 612,038 Capital Improvements 1,894 100,500 58,444,427 58,544,927 58,544,927 58,544,927 1,894 GTrans 46,307,461 29,676,984 10,455,616 40,132,600 39,932,937 199,663 40,132,600 46,307,461 Sewer Fund 794,145 2,512,500 - 2,512,500 2,049,155 5,081,838 7,130,993 (3,824,348) En
terprise Funds 47,101,606 32,189,484 10,455,616 42,645,100 41,982,092 5,281,501 47,263,593 42,483,113 Technology Replacement 2,936,172 733,989 25,000 758,989 672,098 - 672,098 3,023,063 Equipment Revolving 1,550,000 - 25,000 25,000 - - - 1,575,000 Deferred Maintenance 12,305,219 25,000 25,000 - 3,746,088 3,746,088 8,584,131 V
ehicle Replacement Fund 2,625,653 150,000 150,000 - - - 2,775,653 Accrued Benefit Liability Stabilization 3,491,053 25,000 25,000 1,650,000 - 1,650,000 1,866,053 Measure A Homeless Initiative 20,819 192,562 192,562 192,562 - 192,562 20,819 Asset Seizure Fund-Non Federal 779,343 - - 325,000 325,000 454,343 Officer Wellness and Mental Health Grant 7,881 - - - - 7,881 Digital Divide - 3,498,291 3,498,291 - 3,498,291 3,498,291 - Consolidated Street Lighting District 444,831 967,356 967,356 887,405 263,944 1,151,349 260,838 Artesia Blvd. Landscape District 5,473 21,662 21,662 21,662 - 21,662 5,473 State Gas Tax 1,542,983 1,756,681 1,756,681 767,599 875,097 1,642,696 1,656,968 Maxine Waters Federal Earmark - 1,000,000 1,000,000 - 1,000,000 1,000,000 - Development Impact Fee 50,108 - - 246,825 246,825 (196,717) S
upplement Law Enforcement (SLESF) 421,082 172,821 172,821 350,000 - 350,000 243,903
PROPOSED REVENUES PROPOSED APPROPRIATIONS
SUMMARY OF FUND ACTIVITY
FISCAL YEAR 2026-2027
FUND DESCRIPTION
FY 2025-2026
PROJECTED
FUND BALANCE
FY 2026-2027
PROJECTED
FUND BALANCE
37 TRANSFERS TOTAL TRANSFERS TOTAL
REVENUES IN REVENUES EXPENDITURES OUT EXPENDITURES
PROPOSED REVENUES PROPOSED APPROPRIATIONS
SUMMARY OF FUND ACTIVITY
FISCAL YEAR 2026-2027
FUND DESCRIPTION
FY 2025-2026
PROJECTED
FUND BALANCE
FY 2026-2027
PROJECTED
FUND BALANCE
Traffic Safety Fund 39,775 75,500 75,500 - 75,500 75,500 39,775 Asset Forfeiture Fund 2,026,731 - - - - 2,026,731 Measure W Safe Clean Water Program (227,420) 872,000 872,000 224,578 1,123,259 1,347,837 (703,257) Mas Fukai Building Structure Renovation - 2,000,000 2,000,000 - 2,000,000 2,000,000 - Bicycle and Pedestrian Program (156,467) 143,000 143,000 - 143,000 143,000 (156,467) CPF Rosecrans Community Center - 1,000,000 1,000,000 - 1,000,000 1,000,000 Façade Improvement Program 12,281 - - 12,281
Rowley Park Gymnasium Renovation (48,360) 2,854,731 2,854,731 2,854,731 2,854,731 (48,360) Measure M Transit (1) 5,272,207 5,272,207 5,272,207 5,272,207 (1) GTrans OPEB Trust 6,550,564 - - 6,550,564 City OPEB Trust Fund 3,896,036 525,000 525,000 - 4,421,036 Measure R Transit 485,155 5,183,409 5,183,409 5,183,409 5,183,409 485,155 Prop A Local Return 7,801 1,684,834 1,684,834 1, 684,834 1,684,834 7,801 Prop 1B Capital 3,749,805 - - 3,749,805
Prop 1B Security 508,093 - - 508,093
AQMD - MSRC 10,431 - - 10,431
Measure A (134,214) 3,126,024 3,126,024 3,126,024 3,126,024 (134,214) South Coast AQMD 193,551 80,000 80,000 15,000 3,500 18,500 255,051 Prop C Local Return 1,361,995 1,308,965 1,308,965 45,323 5,278,077 5,323,400 (2,652,440) Prop 68 State Parks Grant (137,629) - - (137,629)
Measure R Highway (19,
494) 2,412,774 2,412,774 2,412,774 2,412,774 (19,494) Measure R Local Return 157,669 981,724 981,724 45,323 3,310,332 3,355,655 (2,216,262) In Lieu Funds (443,580) - 2,617,771 2,617,771 (3,061,351) Measure M Local Return (1,417,827) 1,112,620 1,112,620 28,936 4,863,204 4,892,140 (5,197,347) SB 1- Gas Tax 478,731 1,713,639 1,713,639 4,396,856 4,396,856 (2,204,486) Unfunded Accrued Liability (UAL) Fund 7,340,813 - 400,000 400, 000 6,940,813 Measure M Highway (0) 12,240,746 12,240,746 12,240,746 12,240,746 - UAL Fund - GTrans 876,439 199,663 199,663 - 1,076,102 UAL Fund - Sewer 48,260 9,268 9,268 - 57,528
Highway Safety Improvement Program (13,025) - - (13,025) Energy Efficiency & Conservation Blk Grn (56,010) - (56,010) 38 TRANSFERS TOTAL TRANSFERS TOTAL
REVENUES IN REVENUES EXPENDITURES OUT EXPENDITURES
PROPOSED REVENUES PROPOSED APPROPRIATIONS
SUMMARY OF FUND ACTIVITY
FISCAL YEAR 2026-2027
FUND DESCRIPTION
FY 2025-2026
PROJECTED
FUND BALANCE
FY 2026-2027
PROJECTED
FUND BALANCE
National Opioid Settlements Fund - - 85,885 - 85,885 (85,885) SCAMP - 416,155 416,155 404,523 11,632 416,155 - SCAMP - Home Delivery - 240,925 240,925 231,977 8,948 240,925 - Supportive Services Program - 141,797 141,797 128,099 13,698 141,797 - Senior Citizen Day Care - Trust - 80 80 80 80 -
Family Child Care 40,963 - - 40,963
Prop 56 - Tobacco Grant Program (28,289) - - (28,289) BJA BYRNE Discretionary Grant (26,622) - - (26,622)
OTS DUI Enforcement Awareness Program - 100,000 100,000 100,000 100,000 - Brownfields Hazardous Material 3,079 - - 3,079
CalHome 413,593 - - 413,593
State HOME Owner Occupied Grant 2,074,000 - - 2,074,000 HOME ARP 1,040,280 1,040,280 1,040,280 1,040,280 - CDBG Admin (37,257) 120,832 120,832 120,832 120,832 ( 37,257) CDBG Housing Rehabilitation Program (41,973) 946,218 946,218 946,218 946,218 (41,973) Special Revenue Funds 53,668,215 53,411,822 983,931 54,395,753 9,643,134 66,290,993 75,934,127 32,129,841 TOTAL ALL FUNDS 130,674,600$ 189,414,871$ 87,790,614$ 277,205,485$ 217,770,654$ 87,790,614$ 305,561,268$ 102,318,817$ 39 TRANSFERS TOTAL TRANSFERS TOTAL
REVENUES IN REVENUES EXPENDITURES OUT EXPENDITURES
General 34,285,655$ 87,761,509$ 6,962,259$ 94,723,768$ 81,461,002$ 13,181,576$ 94,642,578$ 34,366,845$ General Fund 34,285,655 87,761,509 6,962,259 94,723,768 81,461,002 13,181,576 94,642,578 34,366,845 General Liability (3,114,874) 1,696,689 1,247,872 2,944,561 3,990,247 9,287 3,999,534 (4,169,847) Workers' Compensation (8,410,237) 2,023,604 800,000 2,823,604 3,203,230 14,552 3,217,782 (8,804,415) Health Benefits 4,331,387 14,100,493 4,230,869 18,331,362 16,622,122 2,505,048 19,127,170 3,535,579 Internal Services Funds (7,193,724) 17,820,786 6,278,741 24,099,527 23,815,599 2,528,887 26,344,486 (9,438,683) 2006 Series A & B Refunding 1,931,614 1,018,561 1,018,561 1,018,561 1,018,561 1,931,614 2014 Taxable Lease Rev Ref Bonds 2 505,586 505,586 505,586 505,586 2 2007A Refunding Rev Bonds 229,796 191,825 191,825 191,825 191,825 229,796 Taxable Pension Obligation Bonds 2020 71,213 6,100,247 6,100,247 6,100,247 6,100,247 71,213 Lease Revenue Bonds, 2021 (1,620,586) 943,750 943,750 943,750 943,750 (1,620,586) Debt Service Funds 612,038 - 8,759,969 8,759,969 8,759,969 - 8,759,969 612,038 Capital Improvements 1,894 4,500,000 4,500,000 4,500,000 4,500,000 1,894 GTrans 46,307,461 30,184,757 10,547,584 40,732,341 40,499,227 233,114 40,732,341 46,307,461 Sewer Fund (3,824,348) 2,512,500 2,512,500 2,157,172 310,820 2,467,992 (3,779,840) Enterprise Funds 42,483,113 32,697,257 10,547,584 43,244,841 42,656,399 543,934 43,200,333 42,527,621 Technology Replacement 3,023,063 733,989 25,000 758,989 672,098 672,098 3,109, 954
Equipment Revolving 1,575,000 25,000 25,000 - 1,600,000 Deferred Maintenance 8,584,131 25,000 25,000 - 8,609,131 Vehicle Replacement Fund 2,775,653 100,000 100,000 625,000 625,000 2,250,653 Accrued Benefit Liability Stabilization 1,866,053 25,000 25,000 - 1,891,053 Measure A Homeless Initiative 20,819 200,417 200,417 200,417 200,417 20,819 Asset Seizure F
und-Non Federal 454,343 - 325,000 325,000 129,343
Officer Wellness and Mental Health Grant 7,881 - - 7,881 Consolidated Street Lighting District 260,838 996,302 996,302 929,467 50,000 979,467 277,673 Artesia Blvd. Landscape District 5,473 21,662 21,662 21,662 21,662 5,473 State Gas Tax 1,656,968 1,756,681 1,756,681 571,038 756,914 1,327,952 2,085,697 Development Impact Fee (196,717) - - (196,717)
Supplement Law Enforcement (SLESF) 243,903 172,821 172,821 - 416,724 Traffic Safety Fund 39,775 75,500 75,500 75,500 75,500 39,775 Asset Forfeiture Fund 2,026,731 - - 2,026,731 Measure W Safe Clean Water Program (703,257) 872,000 872,000 224,578 683,259 907,837 (739,094)
SUMMARY OF FUND ACTIVITY
FISCAL YEAR 2027-2028
FUND DESCRIPTION
FY 2026-2027
PROJECTED
FUND BALANCE
AMENDED REVENUES AMENDED APPROPRIATIONS FY 2027-2028
PROJECTED
FUND BALANCE
40 TRANSFERS TOTAL TRANSFERS TOTAL
REVENUES IN REVENUES EXPENDITURES OUT EXPENDITURES
SUMMARY OF FUND ACTIVITY
FISCAL YEAR 2027-2028
FUND DESCRIPTION
FY 2026-2027
PROJECTED
FUND BALANCE
AMENDED REVENUES AMENDED APPROPRIATIONS FY 2027-2028
PROJECTED
FUND BALANCE
Bicycle and Pedestrian Program (156,467) - - (156,467) Façade Improvement Program 12,281 - - 12,281 Rowley Park Gymnasium Renovation (48,360) - - (48,360) Measure M Transit (1) 5,364,175 5,364,175 5,364,175 5,364,175 (1) GTrans OPEB Trust 6,550,564 - - 6,550,564 City OPEB Trust Fund 4,421,036 525,000 525,000 - 4,946,036 Measure R Transit 485,155 5,183,409 5,183,409 5,183,409 5,183,409 485,155 Prop A Local Return 7,801 1,853,317 1,853,317 1,853,317 1,853,317 7,801 Prop 1B Capital 3,749,805 - - 3,749,805 Prop 1B Security 508,093 - - 508,093 AQMD - MSRC 10,431 - - 10,431 Measure A (134,214) - - (134,214) South Coast AQMD 255,051 80,000 80,000 15,000 3,500 18,500 316,551 Prop C Local Return (2,652,440) 1,344,307 1,344,307 47,793 1,354,410 1,402,203 (2,710,336) Prop 68 State Parks Grant (137,629) - - (137,629) Measure R H
ighway (19,494) - - (19,494) Measure R Local Return (2,216,262) 1,008,231 1,008,231 47,793 854,503 902,296 (2,110,327) In Lieu Funds (3,061,351) - - (3,061,351) Measure M Local Return (5,197,347) 1,142,661 1,142,661 30,682 1,053,124 1,083,806 (5,138,492) SB 1- Gas Tax (2,204,486) 1,765,048 1,765,048 1,825,000 1,825,000 (2,264,438) Unfunded Accrued Liability (UAL) Fund 4,040,813 - 4,200,000 4,200,000 (159,187) Measure M Highway - - - - UAL Fund - GTrans 1,076,102 233,114 233,114 - 1,309,216 U
AL Fund - Sewer 57,528 10,820 10,820 - 68,348 Highway Safety Improvement Program (13,025) - - (13,025) Energy Efficiency & Conservation Blk Grn (56,010) - (56,010) National Opioid Settlements Fund (85,885) - 93,650 93,650 (179,535) SCAMP - 429,120 429,120 417,509 11,611 429,120 - SCAMP - Home Delivery - 246,236 246,236 237,304 8,932 246,236 - Supportiv
e Services Program - 144,534 144,534 130,861 13,673 144,534 - Senior Citizen Day Care - Trust - 80 80 80 80 - Family Child Care 40,963 - - 40,963
41 TRANSFERS TOTAL TRANSFERS TOTAL
REVENUES IN REVENUES EXPENDITURES OUT EXPENDITURES
SUMMARY OF FUND ACTIVITY
FISCAL YEAR 2027-2028
FUND DESCRIPTION
FY 2026-2027
PROJECTED
FUND BALANCE
AMENDED REVENUES AMENDED APPROPRIATIONS FY 2027-2028
PROJECTED
FUND BALANCE
Prop 56 - Tobacco Grant Program (28,289) - - (28,289) BJA BYRNE Discretionary Grant (26,622) - - (26,622)
OTS DUI Enforcement Awareness Program - 100,000 100,000 100,000 100,000 - Brownfields Hazardous Material 3,079 - - 3,079
CalHome 413,593 - - 413,593
State HOME Owner Occupied Grant 2,074,000 - - 2,074,000 CDBG Admin (37,257) 120,832 120,832 120,832 120,832 (37,257) CDBG Housing Rehabilitation Program (41,973) 946,218 946,218 946,218 946,218 (41,973) Special Revenue Funds 29,229,841 24,557,540 968,934 25,526,474 7,285,219 21,763,090 29,048,309 25,708,006 TOTAL ALL FUNDS 99,418,817$ 162,837,092$ 38,017,487$ 200,854,579$ 168,478,188$ 38,017,487$ 206,495,675$ 93,777,721$
42 Fund Description Revenues Expenditures Delta
General Fund $89,905,980 $89,812,078 $93,902
Combined Internal Services $22,951,905 $24,492,641 ($1,540,736) Combined Debt Service $8,761,820 $9,513,902 ($752,082)
Capital Improvement (CIP) $58,544,927 $58,544,927 $0
Enterprise Funds
- Transportation $40,132,600 $40,132,600 $0
Enterprise Funds
- Sewer $2,512,500 $7,130,993 ($4,618,493)
Special Revenue Funds $54,395,753 $75,934,127 ($21,538,374) Total All Funds
- not including beginning fund balance $277,205,485 $305,561,268 ($28,355,783)
SUMMARY OF REVENUES AND EXPENDITURES
FISCAL YEAR 2026-2027 PROPOSED BUDGET - ALL FUNDS
A " structurally balanced budget " projects revenues to exceed expenditure appropriations within the term of the budget.
The City's fiscal year (term) is from July 1 - June 30 so expenditure appropriations must be made within revenue projections. The variance between revenue and expenditures is referred to as the "delta" (^) and may be positive, reflecting a structurally balanced budget, or negative, indicating a structural imbalance. A structural imbalance is normally the result of the revenue being received in a prior fiscal year. When a positive delta exists at the end of a fiscal year, revenues may be appropriated to expend in the next fiscal year or may be set aside as a reserve to be used for an emergency or one-time opportunities. Fund balance reserves are not intended to offset normal operating cost or to balance an unstructured budget. The General Fund is the only fund that is totally discretionary and therefore must balance a negative delta in any fund; conversely other funds may not be used to balance a negative delta in the General Fund. 43 Fund Description Revenues Expenditures Delta
General Fund $94,723,768 $94,642,578 $81,190
Combined Internal Services $24,099,527 $26,344,486 ($2,244,959) Combined Debt Service $8,759,969 $8,759,969 $0
Capital Improvement (CIP) $4,500,000 $4,500,000 $0
Enterprise Funds
- Transportation $40,732,341 $40,732,341 $0
Enterprise Funds
- Sewer $2,512,500 $2,467,992 $44,508
Special Revenue Funds $25,526,474 $29,048,309 ($3,521,835) Total All Funds
- not including beginning fund balance $200,854,579 $206,495,675 ($5,641,096)
SUMMARY OF REVENUES AND EXPENDITURES
FISCAL YEAR 2027-2028 PROPOSED BUDGET - ALL FUNDS
A " structurally balanced budget " projects revenues to exceed expenditure appropriations within the term of the budget.
The City's fiscal year (term) is from July 1 - June 30 so expenditure appropriations must be made within revenue projections. The variance between revenue and expenditures is referred to as the "delta" (^) and may be positive, reflecting a structurally balanced budget, or negative, indicating a structural imbalance. A structural imbalance is normally the result of the revenue being received in a prior fiscal year. When a positive delta exists at the end of a fiscal year, revenues may be appropriated to expend in the next fiscal year or may be set aside as a reserve to be used for an emergency or one-time opportunities. Fund balance reserves are not intended to offset normal operating cost or to balance an unstructured budget. The General Fund is the only fund that is totally discretionary and therefore must balance a negative delta in any fund; conversely other funds may not be used to balance a negative delta in the General Fund. 44 DEPARTMENT
PROPOSED BUDGET
FY 2026/27 & FY 2027/28
45 OPERATIONAL DEPARTMENTS
ELECTED & CITY MANAGER’S OFFICES
ADMINISTRATIVE
SERVICES
POLICE
RECREATION & HUMAN
SERVICES
GTRANS
PUBLIC WORKS
COMMUNITY
DEVELOPMENT
CITIZENS OF GARDENA
46 Elected & Appointed Positions
Elected Mayor 1.00 1.00 1.00 1.00 1.00
Elected Councilperson 4.00 4.00 4.00 4.00 4.00
Elected City Clerk 1.00 1.00 1.00 1.00 1.00
Elected City Treasurer 1.00 1.00 1.00 1.00 1.00
Gardena Beautification Commissioner 10.00 10.00 10.00 10.00 10.00 Rent Mediation Board Member 15.00 15.00 15.00 15.00 15.00 Gardena Economic Business Advisory Commissioner 10.00 10.00 10.00 10.00 10.00 Planning Commissioner 5.00 5.00 5.00 5.00 5.00
Recreation Commissioner 5.00 5.00 5.00 5.00 5.00
Senior Citizens Commissioner 5.00 5.00 5.00 5.00 5.00
Human Services Commissioner 5.00 5.00 5.00 5.00 5.00
Gardena Youth Commissioner 10.00 10.00 10.00 10.00 10.00 Total Elected & Appointed Positions 72.00 72.00 72.00 72.00 72.00 Departments
Administrative Services 22.00 22.00 23.00 25.00 26.00 Elected & City Manager's Offices 11.30 11.30 11.30 11.30 11.30 Community Development 19.35 19.35 19.35 19.35 19.35 Police & Community Safety 130.90 132.90 133.90 136.90 136.90 Public Works 47.30 49.00 49.00 50.00 50.00
Recreation & Human Services 67.88 78.91 80.66 81.66 81.66 Transportation - GTrans 159.10 165.50 165.50 179.00 179.00 Total Full Time Equivalent Positions 457.83 478.96 482.71 503.21 504.21 Proposed
FY 27/28
Citywide Staffing Plan
Proposed Budget Fiscal Years 2026-27 & 2027-28
Budgeted
FY 23/24
Budgeted
FY 24/25
Budgeted
FY 25/26
Proposed
FY 26/27
47 Legislative body for the City of Gardena and
serve on various committees, commissions, and
boards
Provides policy and operational direction to the
City Manager
Establishes City services and service levels; tax
rates, fees, assessments, and other revenue as
set forth by the Gardena Municipal Code
CITY MANAGER
Appoints all Department Heads and
supervise the operation of all City
Departments
Implements City Council’s policy decisions
and objectives
Prepares and observes the municipal budget
and makes recommendations to the City
Council
CITY CLERK
Maintaining records and updating Municipal
Codes
Provides resourceds to the public and City
staff
Coordinates the publication and posting of
ordinances, meetings, and other legal
notices
CITY TREASURER
Performs an oversight role of the investment
of all public funds
Advises the City Council with regard to the
investment policies and oversight
Serves on the Finance Committee
For more information visit
www.cityofgardena.org
ELECTED & CITY MANAGER’S OFFICE
CITY OF GARDENA
Clint D. Osorio
City Manager
Tasha Cerda
Mayor
Guy Mato
City Treasurer
Paulette C. Francis
Councilmember
Mark E. Henderson Ed. D
Mayor Pro Tem
Mina Semenza
City Clerk
Wanda Love
Councilmember
Rodney G. Tanaka
Councilmember
48 APPOINTED CITY MANAGER
CHIEF EXECUTIVE OFFICER
CLINT D. OSORIO
ELECTED MAY O R
TASHA CERDA
ELECTED CITY COUNCIL
MARK E. HENDERSON
RODNEY G. TANAKA
PAULETTE C. FRANCIS
WANDA LOVE
ELECTED CITY CLERK
MINA SEMENZA
PUBLIC RECORDS & ELECTIONS
ELECTED CITY TREASURER
GUY H. MATO
PUBLIC FUNDS/INVESTMENTS
APPOINTED COMMISSIONS, BOARDS
& COMMITTEES
ADMINISTRATIVE SUPPORT PROVIDED BY
APPROPRIATE OPERATING DEPARTMENT
APPOINTED CITY ATTORNEY
CONTRACTED LEGAL SERVICES
CARMEN VASQUEZ
ELECTED & CITY MANAGER’S OFFICES
RENT MEDIATION BOARD
GARDENA BEAUTIFICATION
COMMISSION
CITIZENS OF GARDENA
49 ELECTED & CITY MANAGER’S OFFICES
50 Elected and City Manager's Office Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
City Clerk 534,750 618,048 607,498 634,470
General Election 903 270,000 1,000 220,000
City Treasurer 52,456 34,880 38,731 40,334
City Manager 1,511,105 1,972,732 2,211,893 2,314,004
Total Elected and City Manager's Office 2,099,214 2,895,660 2,859,122 3,208,808 Percentage above is for Fiscal Year 2027-28
City Clerk
20%
General Election
7%
City Treasurer
1%
Executive Offices
72%
51 The Administrative Services Department includes
Human Resources, Risk Management, Information
Technology, Fiscal Resources, and Treasury Services.
We safeguard the short and long-term financial stability of the community through prudent fiscal policies,
coordinate the recruitment and retention of employees,
and safeguard the city investments and resources. We
are committed to providing excellent service to our
internal departments and our community.
Goal #1: Implement a new Enterprise Resource
Planning (ERP) system for accounting,
procurement, budgeting, payroll, human
resources and capital asset management.
Goal #2: Update policies and procedures to
maintain accountability, compliance, adapt to
changes, and optimize organizational
performance.
Goal #3: Complete union negotiations and
finalize MOUs with all five bargaining groups to
ensure agreements are fiscally responsible,
sustainable and supportive of stable City
operations.
For more information visit
www.cityofgardena.org
ADMINISTRATIVE SERVICES
CITY OF GARDENA
52 TECHNOLOGY RESOURCES
NETWORK INFRASTRUCTURE
DESKTOP COMPUTER SUPPORT
MOBILE DEVICES SUPPORT
TELEPHONE ADMINISTRATION
CABLE TELEVISION
WEBMASTER
GRAPHICS/PUBLICATIONS
ADMINISTRATIVE SERVICES
DIRECTOR
RAY BEEMAN
CITY MANAGER
CLINT OSORIO
RISK MANAGEMENT
SAFETY & RISK CONTROL
WORKERS’ COMPENSATION CLAIMS ADMIN
PROPERTY & CASUALTY CLAIMS ADMIN
FISCAL RESOURCES
PAYROLL & BENEFITS
ACCOUNTS PAYABLE & RECEIVABLE
REVENUE MANAGEMENT/COLLECTIONS
BUDGETING, AUDITING,
GRANT/SPECIAL REVENUE ACCOUNTING
FINANCIAL ANALYSIS & REPORTING
CAPITAL FUNDING/DEBT ADMINISTRATION
PURCHASING
PROCUREMENT
SERVICE CONTRACTS
PO ISSUANCE
INVESTMENTS
INVESTMENT MANAGEMENT
INVESTMENT ANALYSIS
ENSURE SUFFICIENT LIQUIDITY
HUMAN RESOURCES
RECRUITMENT & HIRING
CLASSIFICATION & COMPENSATION
EMPLOYEE/RETIREE BENEFITS
LABOR RELATIONS
EMPLOYEE SERVICES
53 ADMINISTRATIVE SERVICES
54 ADMINISTRATIVE SERVICES
55 Administrative Services Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
City Treasurer's Services 289,998 499,331 525,361 545,957 Human Resources 556,357 565,255 634,454 647,289
Technology Resources 781,940 738,875 721,734 745,317
Fiscal Resources 1,466,528 1,642,354 1,734,822 1,896,873 Total Administrative Services 3,094,823 3,445,815 3,616,371 3,835,436 Percentage above is for Fiscal Year 2027-28
City Treasurer's Services
14%
Human Resources
17%
Technology Resources
19%
Fiscal Resources
50%
56 Special Revenue Funds
Administrative Services
Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Technology Replacement Fund 622,116 568,238 672,098 672,098 Deferred Maintenance Fund 420,911 2,061,911 3,746,088 - Vehicle Replacement Fund 822,139 670,000 - 625,000
Digital Divide 137,428 3,542,900 3,498,291 -
South Coast Air Quality Management
District 22,477 43,500 18,500 18,500
Administrative Services Grants 2,236,562 - 1,650,000 - Total Administrative Services
Special Revenue Funds 4,261,632 6,886,549 9,584,977 1,315,598 Percentage above is for Fiscal Year 2027-28
Technology
Replacement Fund,
51%
Vehicle Replacement
Fund, 48%
South Coast Air
Quality Management
District, 1%
57 The Community Development Department provides a
variety of services. City Planning provides support to
administer plans, programs, design guidelines, and new
legislation. Economic Development is responsible for
the attraction, retention, and expansion of businesses.
Building and Safety reviews construction plans to
ensure they meet state building codes, issue permits,
and provides inspections. Code Enforcement and
Animal Control ensure code compliance and investigate
violations.
Goal #1: Update the City’s Title 18 Zoning Code
by ensuring consistency throughout the Gardena
Municipal Code, and reviewing and updating
allowable uses, development standards, and
other requirements and references.
Goal # 2: Update and improve the City’s building
permit processing and tracking system by
updating and implementing the existing software
modules and providing integration for online
payment processes.
Goal #3: Conduct proactive code enforcement
efforts to ensure consistent adherence to the
Gardena Municipal Code and support a safe,
clean and high-quality community environment.
For more information visit
www.cityofgardena.org
CITY OF GARDENA
COMMUNITY DEVELOPMENT
58 PLANNING AND ZONING
GENERAL PLAN
LAND ZONING/USES
DEVELOPMENT ENTITLEMENTS
PLAN CHECK AND REVIEW
COMMUNITY DEVELOPMENT
DIRECTOR
GREG TSUJIUCHI
CITY MANAGER
CLINT OSORIO
GARDENA ECONOMIC
BUSINESS ADVISORY
COMMISSION (GEBAC)
BUILDING & SAFETY
PLAN CHECKING & APPROVAL
BUILDING PERMITTING &
INSPECTIONS
OCCUPANCY CERTIFICATION
RESIDENTIAL & COMMERCIAL
CONSTRUCTIONS
ANIMAL CONTROL
ANIMALS CARE & CONTROL
PET LICENSING
ANIMAL DISPOSAL
ANIMAL CRUELTY INVESTIGATION
PLANNING &
ENVIRONMENTAL QUALITY
COMMISSION
ECONOMIC DEVELOPMENT
BUSINESS RETENTION & EXPANSION
NEW BUSINESS LICENSING
SPECIAL PERMITTING
COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG)
PROGRAM ADMINISTRATION
RESIDENTIAL REHABILITATION
PROGRAM
CODE ENFORCEMENT
LAND USE REGULATIONS
CONSTRUCTIONS & BUILDING
STANDARDS
MUNICIPAL CODE ENFORCEMENT
59 COMMUNITY DEVELOPMENT
60 Community Development Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Economic Development 223,586 224,575 266,186 275,118
Code Enforcement 534,092 566,869 608,439 649,033
Animal Control 456,722 394,666 410,889 423,525 Permits and Licenses 698,038 805,356 658,633 693,651
Building Services 1,068,790 1,271,595 1,107,015 1,195,413 Development Services & Planning 359,919 352,054 501,795 519,176 Total Community Development 3,341,147 3,615,115 3,552,957 3,755,916 Percentage above is for Fiscal Year 2027-28
Economic
Development
7%
Code Enforcement
17%
Animal Control
11%
Permits and
Licenses
19%
Building Services
32%
Development
Services & Planning
14%
61 Special Revenue Funds
Community Development
Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Community Development Block Grants 1,592,279 543,994 1,067,050 1,067,050 Gardena Boulevard Revitalization 1,288 231,000 - - Development Impact Fee 12,095 811,000 246,825 - SB 2 Planning Grant 5,594 - - - Local Early Action Planning (LEAP) Grant 89,662 - - - Home ARP - - 1,040,280 - Permanent Local Housing Alloc (PLHA) 373,912 - - - Total Community Development
Special Revenue Funds 2,074,830 1,585,994 2,354,155 1,067,050 Percentage above is for Fiscal Year 2027-28
Community
Development Block
Grants, 100%
62 GTrans is the City of Gardena’s public transit provider, delivering safe, reliable transportation for more than 86 years. It operates 2.5 million annual trips with a fleet of CNG and zero‑emission buses serving Gardena,
Compton, downtown Los Angeles, Hawthorne, Redondo
Beach, El Segundo, and Harbor City. The agency also
runs Bolt, an on‑demand service for the general public
within Gardena and for paratransit riders in Gardena,
Hawthorne, Alondra Park, and Del Aire. Daily service is carried out by skilled bus and on‑demand operators
supported by operations, maintenance, facilities, and
administrative teams.
Goal #1: Identify and implement service
enhancements that will improve reliability and
mobility for GTrans customers and promote
efficiencies within the design and operation of
the service.
Goal # 2: Continue to support employee
development and focus on recruitment and
retention strategies that maintain appropriate
staffing levels. Continue to develop and
implement policies, monitoring tools and design
elements that enhance on-board safety for both
employees and customers.
Goal #3: Design and construct infrastructure to
support sustainability through cost effective
energy generation and charging of zero-emission
battery electric buses and vehicles through
installation of charging stations, solar panels and
battery storage.
For more information visit
www.cityofgardena.org
CITY OF GARDENA
GTRANS
63 TRANSPORTATION
FIXED ROUTE OPERATIONS
ROUTE PLANNING & SCHEDULING
TRAINING
SAFETY
GTRANS
DEPUTY CITY MANAGER &
DIRECTOR
ERNIE CRESPO
CITY MANAGER
CLINT OSORIO
ADMINISTRATION
GENERAL ADMINISTRATION
GRANT ADMINISTRATION
PROCUREMENT
OUTREACH & MARKETING
COMPLIANCE
NETWORK & SYSTEM MANAGEMENT
PAYROLL/HR
BUDGETING/AUDIT/FINANCIAL ANALYSIS
CUSTOMER SERVICE
ON-DEMAND
BOLT
MAINTENANCE/FACILITY
FLEET INSPECTIONS & MAINTENANCE
EQUIPMENT MAINTENANCE
FACILITY MAINTENANCE
STOPS AND ZONES
64 GTRANS
65 GTRANS
TRANSPORTATION cont.
Budgeted
FY 23/24
Budgeted
FY 24/25
Budgeted
FY 25/26
Proposed
FY 26/27
Proposed
FY 27/28
Transit Operations
Transit Operations Manager 1.00 1.00 1.00 1.00 1.00
T
ransit Training and Safety Supervisor 1.00 - - - -
Transit Training and Safety Manager - 1.00 1.00 1.00 1.00 Transit Training Supervisor - 1.00 1.00 1.00 1.00
Tranit Operations Training Coordinator 1.00 2.00 2.00 3.00 3.00 Transit Planning & Scheduling Analyst 1.00 1.00 1.00 1.00 1.00 Assistant Transit Operations Manager 1.00 1.00 1.00 1.00 1.00 Transportation Operations Supervisor 11.00 12.00 12.00 12.00 12.00 Bus Operators 76.80 71.00 71.00 98.00 98.00
On-Demand Transit Dispatcher 1.00 3.00 3.00 2.00 2.00
On-Demand (Micro/Paratransit) Operator - 4.00 8.00 8.00 8.00 Paratransit Drivers 6.30 4.00 - - -
Relief Bus Operator Trainees 2.00 1.00 1.00 - -
Relief Bus Operators 13.50 13.50 13.50 1.00 1.00
Total Transit Operations 115.60 115.50 115.50 129.00 129.00 Transit Maintenance
Transit Fleet & Maintenance Manager* - -
Transit Maintenance Manager 1.00 1.00 1.00 1.00 1.00
Tranist Maintenance Coordinator 1.00 1.00 1.00 1.00 1.00 Fleet Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00
Facilities Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00 Lead Meachanic 2.00 2.00 2.00 3.00 3.00
Transit Mechanic II 7.00 8.00 8.00 8.00 8.00
Transit Mechanic I - 1.00 1.00 2.00 2.00
Transit Parts/Storeroom Coordinator 2.00 2.00 2.00 1.00 1.00 Maintenance Coordinator 1.00 - - - -
Sr. Building Maintenance Worker 1.00 1.00 1.00 1.00 1.00 Sr. Transit Utility Specialist 2.00 2.00 2.00 2.00 2.00 Apprentice Mechanic 1.00 1.00 1.00 - -
Equipment Utility Worker II 1.00 2.00 2.00 2.00 2.00
Equipment Utility Worker I 5.00 4.00 4.00 4.00 4.00
Total Transit Maintenance 26.00 27.00 27.00 27.00 27.00 TOTAL FTE - TRANSPORTATION 159.10 165.50 165.50 179.00 179.00 *Additional funding has been allocated for promotional opportunities starting FY 2026/2027 Staffing Plan - Full Time Equivalent Positions
66 GTrans Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Facility Maintenance 1,217,868 1,814,579 1,351,647 1,554,238 Administration 8,330,360 7,167,467 7,064,571 7,328,068
On-Demand 637,480 1,201,125 1,067,212 1,119,723
Transportation 15,008,611 14,781,921 17,896,208 18,714,532 Equipment Maintenance 2,927,313 3,506,382 3,844,600 4,105,149 Capital Expenditures - 14,107,359 6,273,947 5,242,765 Expense Charges 2,434,752 2,471,676 2,434,752 2,434,752 Transfers Out 129,541 167,860 199,663 233,114
Total GTrans 30,685,925 45,218,369 40,132,600 40,732,341 Percentage above is for Fiscal Year 2027-28
Facility
Maintenance, 4%
Administration, 18%
On-Demand, 3%
Transportation, 46%
Equipment
Maintenance, 10%
Capital
Expenditures, 13%
Expense Charges,
6%
Transfers Out, 0%
67 Special Revenue Funds
GTrans
Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Measure M Transit 3,413,120 4,162,084 5,272,207 5,364,175 Measure R Transit 3,427,117 4,174,379 5,183,409 5,183,409 Prop 1B Capital 144,036 - - - Prop 1B Security 19,517 - - - Prop A Local Return 1,118,001 1,827,289 1,684,834 1,853,317 Total GTrans
Special Revenue Funds 8,121,791 10,163,752 12,140,450 12,400,901 Percentage above is for Fiscal Year 2027-28
Measure M Transit
43%
Measure R Transit
42%
Prop A Local Return
15%
68 The Gardena Police Department is dedicated to protecting life and property, preserving peace, and maintaining public order through professional, accountable policing. Its mission centers on public safety, community partnership, and ethical service. By combining data‑informed strategies with strong relationships across residents, businesses, schools, and organizations, the department works to prevent crime, solve problems, and enhance quality of life citywide. Guided by integrity, accessibility, and the Law Enforcement Code of Ethics, employees remain committed to trust, transparency, and collaboration.
Goal #1: Revitalize and Strengthen our District
Policing Program Renew and expand our District
Policing model to increase engagement, community
participation, and problem-solving effectiveness.
Focus on strengthening officer ownership of
geographic areas, improving communication with
residents and businesses, and increasing visible
partnership activities.
Goal #2: Expand Technology for Crime Prevention,
Apprehension, and Officer Safety Advance the
Department’s use of modern technology to improve
response, reduce crime, and enhance officer safety.
Key initiatives include implementation and
integration of the Drone First Responder (DFR)
program, expanded use of real-time crime and data
analytics tools, and continued development of video
and performance systems.
Goal #3: Recruit, Develop, and Mentor the Next
Generation of Leaders Prioritize the hiring of high-
quality police officers and professional staff who
reflect the Department’s standards and values.
Invest in mentoring and leadership development for
current personnel to support succession planning,
promotional readiness, and organizational continuity.
Promote a culture where experience is shared, talent
is developed, and future leaders are intentionally
prepared.
For more information visit
www.cityofgardena.org
POLICE DEPARTMENT
CITY OF GARDENA
69 OPERATIONS DIVISION
TRAFFIC BUREAU
DISTRICT POLICING PROGRAM
SPECIAL WEAPONS AND TACTICS (SWAT)
PATROL BUREAU
K9 UNIT
EXPLORER PROGRAM
PEER SUPPORT/WELLNESS
CITY CAMERAS
MOBILE FIELD FORCE
EMERGENCY OPERATIONS CENTER (EOC)
GARDENA COMMUNITY EMERGENCY RESPONSE
TRAINING (CERT)
POLICE
CHIEF OF POLICE
TODD FOX
CITY MANAGER
CLINT OSORIO
SUPPORT SERVICES DIVISION
DETECTIVE BUREAU
SPECIAL TASKS & RESPONSE TEAM
SPECIAL INVESTIGATION UNIT
RECORDS/JAIL/TRAINING/PROPERTY
PROFESSIONAL STANDARDS
ADMINISTRATION
INTERNAL AFFAIRS
TRAINING & EQUIPMENT
FLEET MAINTENANCE
GARDENA MENTAL EVALUATION TEAM (GMET)
GARDENA JUVENILE JUSTICE AND INTERVENTION
PROGRAM (GJJIP)
70 POLICE
71 Police Department Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Juvenile Justice & Intervention Program 44,285 70,000 98,628 101,217 Parking Compliance 158,886 150,100 150,000 150,000
Police Operations 24,895,584 26,218,270 24,024,410 25,641,505 Police Support 11,029,351 11,995,195 11,756,060 12,328,534 Total Police 36,128,107 38,433,565 36,029,098 38,221,256 Percentage above is for Fiscal Year 2027-28
JJIP/Parking
1%
Police Operations
67%
Police Support
32%
72 Special Revenue Funds
Police Department
Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Supplemental Law Enforcement (SLESF) 147,691 251,000 350,000 - Traffic Safety Fund - 75,500 75,500 75,500 OTS DUI Enforcement Awareness
Program 117,187 100,000 100,000 100,000 Police Grants 117,812 - 410,885 418,650 Total Police Department
Special Revenue Funds 382,689 426,500 936,385 594,150 Percentage above is for Fiscal Year 2027-28
Traffic Safety Fund
13%
OTS DUI
Enforcement
Awareness Program
17%
Police Grants
70%
73 The Public Works Department maintains the safety and aesthetics of the City streets, facilities, parks, medians and equipment at the highest standards. The
Department provides continual maintenance and
improvement of the City’s physical infrastructure and
facilities and provides quality engineering services.
Goal #1: 1.Reconstruction of Mas Fukai Park Goal #2: Major Renovations of RBB from Vermont to Crenshaw
Goal #3: Design development of Gardena
Traffic Signal Network Upgrade Project
consisting of Fiber Optic corridor backbon
For more information visit
www.cityofgardena.org
CITY OF GARDENA
PUBLIC WORKS
74 OPERATIONS & MAINTENANCE
STREET MAINTENANCE
STREET SWEEPING
GRAFFITI ABATEMENT
TRAFFIC SIGNS & SIGNALS
STORM DRAIN SYSTEM
TRAFFIC PAINTING/STRIPING
FLEET MAINTENANCE
PARK MAINTENANCE
PARK MAINTENANCE
TREE TRIMMING
MEDIAN MAINTENANCE
ARTESIA LANDSCAPING DISTRICT
FACILITY MAINTENANCE
BUILDING MAINTENANCE
PUBLIC WORKS
ACTING DIRECTOR
KEVIN KWAK
CITY MANAGER
CLINT OSORIO
ADMINISTRATION
MANAGE WASTE HAULER CONTRACT
GRANT MANAGEMENT
PROCESS INVOICES/PO’S
KEEP GARDENA BEAUTIFUL DAY
SHREDDING EVENT
COMPOST EVENT
HOUSEHOLD HAZARDOUS & ELECTRONIC
WASTE EVENT
SEWER SYSTEM
(ENTERPRISE FUND)
SEWER MAINTENANCE
ENGINEERING
CAPITAL IMPROVEMENT PROGRAM (CIP)
PRIVATE DEVELOPMENT & PERMITS
STORMWATER MANAGEMENT
UTILITIES
75 PUBLIC WORKS
76 PUBLIC WORKS
77 Public Works Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Public Works Administration 730,970 799,633 707,960 734,780 Building Maintenance 444,069 717,027 806,925 832,078
Street Maintenance 1,354,186 1,355,522 1,559,665 1,667,620 Traffic Signal and Signs 615,009 580,895 510,852 529,755 Park Maintenance 2,248,848 2,225,590 2,195,080 2,320,559 Equipment Maintenance 542,460 536,967 548,694 563,880
Engineering 961,121 1,044,849 1,238,515 1,328,694
Tree Trimming 231,044 297,182 282,131 293,702
Total Public Works 7,127,708 7,557,665 7,849,822 8,271,068 Percentage above is for Fiscal Year 2027-28
Public Works
Administration
9%
Building
Maintenance
10%
Street Maintenance
20%
Traffic Signal and
Signs
6%
Park Maintenance
28%
Equipment
Maintenance
7%
Engineering
16%
Tree Trimming
4%
78 Special Revenue Funds
Public Works
Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Consolidated Lighting & Artesia
Landscape 926,334 1,196,915 1,173,011 1,001,129
State Gas Tax & SB 1 2,327,291 7,399,844 6,039,552 3,152,952 Sewer Fund (Enterprise) 2,075,323 6,925,056 7,130,993 2,467,992 Prop C Local Return 670,185 3,780,323 5,323,400 1,402,203 Measure M Local 523,025 6,511,490 4,892,140 1,083,806 Public Works Grants 3,753,140 20,688,520 19,500,012 1,810,133 Total Public Works
Special Revenue Funds 10,275,299 46,502,148 44,059,108 10,918,215 Percentage above is for Fiscal Year 2027-28
Consolidated
Lighting & Artesia
Landscape
9%
State Gas Tax & SB 1
29%
Sewer Fund
(Enterprise)
23%
Prop C Local Return
13%
Measure M Local
10%
Public Works Grants
16%
79 The City of Gardena Recreation & Human Services
Department is committed to enhancing the quality of life for our diverse community by providing inclusive, accessible, and high-quality recreation, social, and community services.
Guided by the Recreation & Parks, Senior Citizens, Youth, and Human Services Commissions, the Department delivers programs and services through its Aquatics & Senior Center, Custodial, Human Services, and Recreation Divisions,
fostering community engagement, wellness, and lifelong
enrichment for individuals, families, and organizations.
Goal #1: To actively combat social isolation by
fostering meaningful connections among community
members through a comprehensive range of
activities, social events, and diverse programming.
We strive to create opportunities for engagement,
collaboration, and mutual support and aim to
enhance the overall well-being and sense of
belonging for everyone we serve by encouraging
participation and building strong social networks.
Goal #2: To provide an inclusive and welcoming
environment for all individuals by maintaining
facilities that are consistently safe, clean, and
accessible. Our goal is to uphold the highest
standards of quality and safety to ensure every
visitor feels comfortable, respected, and valued.
Goal #3: To create accessible, engaging, and diverse
recreational programs that empower individuals of all
abilities to participate fully, while promoting physical and mental well-being, fostering independence, and
supporting personal growth in a welcoming and
inclusive environment.
For more information visit
www.cityofgardena.org
RECREATION & HUMAN SERVICES
CITY OF GARDENA
80 HUMAN SERVICES
EMERGENCY/HOMELESS SERVICES
YOUTH & FAMILY SERVICES
RECREATION & HUMAN SERVICES
ACTING DIRECTOR
NIKKI SWEENEY
CITY MANAGER
CLINT OSORIO
RECREATION & LEISURE SERVICES
AFTERSCHOOL & DAY CAMP PROGRAMS
AQUATICS
COMMUNITY EVENTS & ACTIVITIES
PARKS & WILLOWS WETLAND PROGRAMMING
THERAPEUTIC RECREATION PROGRAM
YOUTH & ADULT SPORTS
FACILITY RENTALS
SENIOR SERVICES
ALZHEIMER'S DAY CARE CENTER
SENIOR ACTIVITIES
SENIOR MEALS PROGRAM
SUPPORTIVE SERVICES PROGRAM
FACILITY SERVICES
CUSTODIAL SERVICES
GARDENA YOUTH COMMISSION
HUMAN SERVICES COMMISSION
RECREATION AND PARKS COMMISSION
SENIOR CITIZENS COMMISSION
81 RECREATION & HUMAN SERVICES
82 RECREATION & HUMAN SERVICES
83 Recreation & Human Services Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Custodial Services 1,015,492 1,274,906 1,331,573 1,387,728 H.S. Youth/Family Services 344,922 445,283 414,979 428,919 Senior Program 251,599 200,157 297,899 315,067 Aquatics 46,905 876,574 993,578 1,036,761 Leisure Services 3,784,948 3,943,243 3,953,190 4,139,941 Total Recreation & Human Services 5,443,866 6,740,163 6,991,219 7,308,416 Percentage above is for Fiscal Year 2027-28
Custodial Services
19%
H.S. Youth/Family
Services
6%
Senior Program
4%
Aquatics
14%
Leisure Services
57%
84 Special Revenue Funds
Recreation & Human Services
Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Senior Programs 861,452 868,908 798,957 819,970
Family Child Care 718 - - - Community Development Block Grants 72,469 72,469 - - Measure A Homeless Initiative - 95,294 192,562 200,417 CPF Rosecrans Community Center - 1,000,000 1,000,000 - Recreation Grants 4,056,992 12,957,001 11,598,526 - Total Recreation & Human Services
Special Revenue Funds 4,991,632 14,993,672 13,590,045 1,020,387 Percentage above is for Fiscal Year 2027-28
Senior Programs
80%
Measure A Homeless
Initiative
20%
85 NON-DEPARTMENTAL
86 NON-DEPARTMENTAL
PUBLIC SAFETY
LA COUNTY FIRE DISTRICT CONTRACT
EMERGENCY COMMUNICATIONS (911)
AREA G (EMERGENCY PREPAREDNESS)
CITY MANAGER
CLINT OSORIO
COMMUNITY PROMOTIONS
CITY CELEBRATIONS
NON-DEPARTMENTAL OPERATING
COSTS
DEBT SERVICE
INTEROPERABILITY NETWORK OF THE
SOUTH BAY (INSB)
SOUTH BAY REGIONAL PUBLIC
COMMUNICATIONS AUTHORITY (RCC)
CALIFORNIA CITIES GAMING AUTHORITY
(CCGA)
87 Non-Departmental Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Public Safety / Fire, 911, Area G 13,907,982 15,247,240 14,575,474 15,262,804 City Services 1,189,591 1,289,108 1,400,919 1,597,298
Debt Service 2,692,509 2,653,425 8,677,407 8,675,707 Transfers Out 13,060,549 5,453,982 4,259,689 4,505,869 Post Employment Benefits Fund 3,576,989 4,003,982 - - City OPEB Trust Fund - 550,000 - -
Unfunded Accrued Liabilities (UAL) Fund - 600,000 400,000 4,200,000 Total Non-Departmental 34,427,619 29,797,737 29,313,489 34,241,678 Percentage above is for Fiscal Year 2027-28
Public Safety / Fire,
911, Area G
51%
City Services
5%
Debt Service
29%
Transfers Out
15%
88 CAPITAL IMPROVEMENT
PROGRAM (CIP),
DEBT SERVICE, and
INTERNAL SERVICE FUNDS
89 CAPITAL IMPROVEMENT
PROGRAM (CIP)
PROPOSED BUDGET
FY 2026/27 & FY 2027/28
90 CAPITAL IMPROVEMENT PROGRAM (CIP)
PARK & FACILITY IMPROVEMENTS $20,841,812 City parks & facilities, playgrounds, facility grounds, and public parkways
STREETS, SEWER & STORMWATER IMPROVEMENTS $37,703,115 Maintain City streets, sanitary sewers, storm drain systems, sidewalks, curbs, crosswalks, traffic signals and signs
Ensure compliance with State & County mandated safety and air/water quality program
FY 2026-2027
CAPITAL IMPROVEMENT PROGRAM BUDGET TOTAL $58,544,927 91 CAPITAL IMPROVEMENT PROGRAM (CIP)
PARK & FACILITY IMPROVEMENTS $ - City parks & facilities, playgrounds, facility grounds, and public parkways
STREETS, SEWER & STORMWATER IMPROVEMENTS $ 4,500,000 Maintain City streets, sanitary sewers, storm drain systems, sidewalks, curbs, crosswalks, traffic signals and signs
Ensure compliance with State & County mandated safety and air/water quality program
FY 2027-2028
CAPITAL IMPROVEMENT PROGRAM BUDGET TOTAL $ 4,500,000 92 Park Land in
Lieu,
$2,617,771 ,
5%
Measure R
Highway,
$2,412,774 ,
4% State
Earmark,
$8,353,022 ,
14%
Prop C,
$4,623,659 ,
8%
Measure A,
$3,126,024 ,
5%
Sewer Fund,
$4,772,570 , 8%SB1,
$4,371,856 ,
8%
Measure M,
$4,810,074 ,
8%
Measure G / Bond
Proceeds,
$752,082 , 1%
Federal
Earmark,
$2,000,000 ,
3%
Measure M
Highway,
$12,240,746 ,
21%
Other,
$8,464,349 ,
15%
CAPITAL REVENUE
… Where the money comes from ...
Streets,
$31,990,545 ,
55%
Parks &
Facilities,
$20,841,812 ,
35%
Sewer,
$4,772,570 ,
7%
Stormwater, $940,000
, 2%
CAPITAL EXPENDITURES
… Where the money goes...
Capital Improvement Program
Proposed Budget Fiscal Year 2026-2027
93 Prop C,
$700,000 ,
16%
SB1,
$1,800,000 ,
40%
Measure M,
$1,000,000 ,
22%
Other,
$1,000,000 ,
22%
CAPITAL REVENUE
… Where the money comes from ...
Streets,
$4,000,000 ,
89%
Stormwater, $500,000
, 2%
CAPITAL EXPENDITURES
… Where the money goes...
Capital Improvement Program
Proposed Budget Fiscal Year 2027-2028
94 95
CAPITAL IMPROVEMENT PROJECTS – STREETS
FISCAL YEAR 2026-2027
JOB NO. PROJECT DESCRIPTION
930 ( c ) Vermont Ave Traffic Signal Improvements - $2,412,774 Improve traffic signals at Vermont Ave. and Rosecrans Ave., and Redondo Beach Blvd.
935 ( c ) Artesia Blvd Singal Improvements - $746,064
Improve traffic signals between Western Ave and Vermont Ave. to address existing and future traffic conditions. The scope and budget amended to include landscape and
pavement improvements.
945 ( c ) Redondo Beach Blvd Street Improvements - $10,413,746 Improve traffic flow along Redondo Beach Blvd. from
Crenshaw Blvd. to Vermont Ave; new medians, improve
signal, signing & striping, rehabilitate concrete and pavements.
988 ( c ) N B Crenshaw Blvd Improvements (129
th to Rosecrans) -
$705,821
Rehabilitate asphalt pavement, striping, and improve
pedestrian safety as needed. The limits consist of County of Los Angeles jurisdiction between Channel Bridge and 135 th
Street.
506 ( c ) Gardena Decorative Street Lighting - $213,944 Convert existing streetlights to SCE approved decorative lights on Gardena Blvd between Vermont and Western and 162
nd
Street from Denker Ave to Western Ave. Additionally, construct string lighting on Gardena Blvd between Vermont and
Budlong.
507 ( c ) Citywide Wayfinding/Entry Sign Program - $63,171 Install new and replace existing Citywide wayfinding signs to help direct drivers on city streets to city facilities such as parks, fire stations, and City Hall.
518 ( c ) County Regional Traffic Signal Synchronization Program (TSSP) on East Rosecrans Ave - $400,000
A multi-jurisdictional project through the County of Los Angeles, the TSSP East Rosecrans Ave corridor project spans from Ocean Gate Ave to Vermont Ave. Gardena’s shared
intersections includes four streets.
526 ( c ) Normandie Ave (Artesia to 177
th), Cassidey St (Normandie
to Vermont) and Vermont Ave (177th to 182nd) Street
Improvements - $1,628,095
Rehabilitate various streets asphalt pavement, striping and pedestrian safety as needed.
( c ) – Continuing project from previous years
( n ) – New project proposed for fiscal year 2026-2027
Overall Impact on Operating Budget
There is no financial impact to the General Fund for these projects.
These improvements in the City will benefit both citizens and visitors in the community. This will provide a safer place, as well as make the City more inviting to people visiting or wanting to move into the community.
96 CAPITAL IMPROVEMENT PROJECTS – STREETS
FISCAL YEAR 2026-2027
JOB NO. PROJECT DESCRIPTION
534 ( c ) County Regional Traffic Signal Synchronization Program (TSSP) on Manhattan Beach Blvd - $55,000
A multi-jurisdictional project through the County of Los Angeles, the TSSP Manhattan Beach Blvd corridor project spans from Manhattan Ave to Van Ness Ave. Gardena’s
shared intersection includes Van Ness Ave.
543 ( c ) County Regional Traffic Signal Synchronization Program (TSSP) on El Segundo Blvd - $50,000
A multi-jurisdictional project through the County of Los Angeles Project TSSP. El Segundo Blvd corridor project from Illinois Street to Budlong Ave. The Gardena’s shared cost is 50% of the Budlong Avenue intersection.
546 ( c ) Annual Sewer Improvements FY 2024/2025 - $2,772,570 Replace or rehab deficient and high maintenance sewer mains that have leaks, root intrusion, and settlement problems.
548 ( c ) 132
nd St (Wilton to Western), 135th St (Western to
Budlong), Marine Ave (Western to Vermont), 145th St
(Gramercy to Western), and 166th St (Western to
Normandie) Improvements - $1,443,701
Rehabilitate various streets asphalt pavement, striping and pedestrian safety as needed.
552 ( c ) County Regional Traffic Signal Synchronization Program (TSSP) on Crenshaw Blvd - $250,000
A multi-jurisdictional project through the County of Los Angeles, the TSSP Crenshaw Blvd corridor project spans from 120th Street to Rosecrans Ave. Gardena’s shared
intersections include El Segundo Blvd, 135
th Street, and
Rosecrans Ave.
553 ( c ) Annual Local Street Improvements FY 2025/2026 - $2,662,951
Rehabilitate various local residential streets asphalt pavement, striping and pedestrian safety as needed.
554 ( c ) Annual Pedestrian Safety Improvements FY 2025/2026 - $1,343,000
Remove and replace damaged curbs, gutters, sidewalks, and access ramps at various locations in maintenance districts four, five and six.
555 ( c ) Annual Sewer Improvements FY 2025/2026 - $2,000,000 Replace or rehab deficient and high maintenance sewer mains that have leaks, root intrusion, and settlement problems at various locations.
556 ( c ) Western Ave Street Improvements (RBB to Rosecrans) - $1,508,500
Rehabilitate asphalt pavement, striping, and improve
pedestrian safety as needed.
( c ) – Continuing project from previous years
( n ) – New project proposed for fiscal year 2026-2027
Overall Impact on Operating Budget
There is no financial impact to the General Fund for these projects.
These improvements in the City will benefit both citizens and visitors in the community. This will provide a safer place, as well as make the City more inviting to people visiting or wanting to move into the community.
97 CAPITAL IMPROVEMENT PROJECTS – STREETS
FISCAL YEAR 2026-2027
JOB NO. PROJECT DESCRIPTION
557 ( c ) 157th St (Van Ness to Gramercy), 162nd St (Gramercy to Western), and 164th St (Normandie to New Hampshire)
Street Improvements - $900,000
Rehabilitate asphalt pavement, striping, and improve
pedestrian safety as needed.
565 ( c ) Gardena Traffic Signal Network Upgrade - $1,827,000 Improve the flow of traffic within the City by upgrading the existing legacy Traffic Signal System (TSS). The new Advance Traffic Controller (ATC) based TSS will be safer, smarter, more efficient, and more reliable. A key component of this upgrade involves replacing the current communication lines with a fiber optic network.
568 ( c ) Mas Fukai Park & Peary Middle School Recycled Water - $100,000
Expand the use of recycled water to irrigate green spaces through a collaborative effort led by the West Basin Municipal Water District, with the City’s participation.
996 ( n ) Vermont Ave Street Improvements (Rosecrans to 135 th) -
$800,000
Rehabilitate asphalt pavement, striping, and improve
pedestrian safety as needed.
571 ( n ) Annual Local Street Improvements FY 2026/2027 - $1,708,905
Rehabilitate various local residential streets asphalt pavement, striping and pedestrian safety as needed.
572 ( n ) El Segundo Blvd Eastbound Street Improvements (Western to Vermont) - $1,250,000
Rehabilitate asphalt pavement, striping, and improve
pedestrian safety as needed.
573 ( n ) Vermont Ave and Gardena Blvd Signal Improvements - $100,000
Study phase to improve the traffic signals at the intersection shared with the City of Los Angeles.
574 ( n ) 163
rd Street and New Hampshire Ave Multiway Stop
Control Improvements - $100,000
Improve the 4-way intersection with 163rd Street running in the east-west directions and New Hampshire Ave/alley running off- set in the north-south directions per the warrant analysis report.
575 ( n ) Citywide Pavement Management Program (PMP) Update - $50,000
Citywide triennial pavement evaluation to support
transportation asset management and develop rehabilitation strategies as required by the LA Metro enterprise/restricted funds.
576 ( n ) Various Collector Street Improvements FY 2026-2027 - $1,260,000
Rehabilitate various collector streets asphalt pavement, striping and pedestrian safety as needed.
( c ) – Continuing project from previous years
( n ) – New project proposed for fiscal year 2026-2027
Overall Impact on Operating Budget
There is no financial impact to the General Fund for these projects.
These improvements in the City will benefit both citizens and visitors in the community. This will provide a safer place, as well as make the City more inviting to people visiting or wanting to move into the community.
98 CAPITAL IMPROVEMENT PROJECTS – PARKS / FACILITIES
FISCAL YEAR 2026-2027
JOB NO. PROJECT DESCRIPTION
820 ( c ) Mas Fukai Park Rehabilitation - $9,583,795
Reconstruction of community center, restroom facilities and enhance the overall park to maximize its use, improve energy efficiency while reducing maintenance costs, and provide a variety of additional features that can accommodate the needs of residents of all ages in an all-inclusive park.
978 ( c ) Gardena Community Aquatic and Senior Center - $552,082
Reconstruction of pool and facility building to accommodate a new 25-yard (8) lane pool, diving bay, fitness pool with ADA ramp, new bleachers & shade structures, exercise equipment and a 12,000 square foot building that will house locker rooms for the pool as well as senior activities.
505 ( c ) Rosecrans Community Center - $1,000,000
Initiate a feasibility study and stakeholder survey to guide development of the new community center.
520 ( c ) Rowley Park Gymnasium HVAC Upgrade – $466,208 Replace three (3) existing Carrier/BDP gas electric package units.
528 ( c ) Nakaoka Community Center Electrical System and Civic Center Outdoor Lighting Upgrades - $246,825
Comprehensive electrical upgrade of the building’s power distribution system to accommodate increased electrical loads, future expansions, and a standby generator.
Improvements will also include enhanced Civic Center lawn and parking lot lighting to improve security and support public events, along with any incidental upgrades required to comply with state building codes.
535 ( c ) Multi-Park Improvements - $200,000
Renovate/repair and upgrade the existing park facilities and amenities.
541 ( c ) Gardena City Hall Electrical System Upgrade - $998,078 Comprehensive electrical upgrade of the building’s power distribution system to accommodate increased electrical loads, future expansions, the addition of electric vehicle (EV) charging stations, and a standby generator, along with any incidental upgrades required to comply with state building codes.
560 ( c ) Fiber Infrastructure Upgrade - $3,498,291
Design and deploy a fiber corridor to connect Gardena
residents, small business, schools, community facilities, and other broadband capabilities at city’s facilities.
( c ) – Continuing project from previous years,
( n ) – New project proposed for fiscal year 2026-2027
Overall Impact on Operating Budget
There is no financial impact to the General Fund for these projects.
These improvements in the City will benefit both citizens and visitors in the community. This will provide a safer place, as well as make the City more inviting to people visiting or wanting to move into the community.
99 CAPITAL IMPROVEMENT PROJECTS – PARKS / FACILITIES
FISCAL YEAR 2026-2027
JOB NO. PROJECT DESCRIPTION
561 ( c ) Rowley Park Gymnasium Renovation - $2,388,523 Revamp the current gymnasium facility and upgrade the
overall amenities to meet current standards and needs.
566 ( c ) Gardena Juvenile Justice Intervention Program (GJIP) Offices - $259,177
Remodel and conversion of an existing dental clinic building to accommodate the Police Department’s Juvenile Justice and Intervention Program (GJJIP).
578 ( n ) City Hall Office Remodel - $500,000
Remodel to transform the existing, outdated interior spaces into a modern, highly functional, and welcoming environment tailored for both city employees and the general public. The scope includes new flooring, facility-wide energy-efficient lighting, reconfiguration to an open-office layout, interior painting, public lobby enhancements, and facility security improvements.
579 ( n ) Rush Gym & Human Services Building Roof
Rehabilitation - $666,600
Rehabilitation of the existing roof, including lead and asbestos abatement, drainage improvements, installation of new flashings, and sealing of roof edges and transitions.
580 ( n ) Public Works Maintenance Office Building Rehabilitation and Remodel (Design Phase) - $110,233
Conceptual and design phase of the aging maintenance
office facility, including site evaluation, building
improvements, code compliance upgrades, and preparation of preliminary cost estimates.
581 ( n ) Public Works Yard Mechanic Shop Reconstruction - $550,000
Demolition and reconstruction of the existing maintenance mechanic shop facility, including associated building, site, and utility improvements, to provide a code-compliant and functional facility.
585 ( n ) Public Works Administration/Engineering and Police Department Facilities Roof Rehabilitation - $462,000
Lead and asbestos abatement, repair of existing and
additional drainage systems, and new curb openings;
installation of all new flashings and skirts; and repair and seal of all edges, joints, transitions, etc. as necessary.
586 ( n ) Dog Park - $200,000
Expand the existing Thornburg Park site to include a
dedicated dog park area and other incidental improvements.
( c ) – Continuing project from previous years,
( n ) – New project proposed for fiscal year 2026-2027
Overall Impact on Operating Budget
There is no financial impact to the General Fund for these projects.
These improvements in the City will benefit both citizens and visitors in the community. This will provide a safer place, as well as make the City more inviting to people visiting or wanting to move into the community.
100
CAPITAL IMPROVEMENT PROJECTS – STREETS
FISCAL YEAR 2027-2028
JOB NO. PROJECT DESCRIPTION
582 ( n ) Vermont Ave Street Improvements (El Segundo to 135th and Artesia to County Channel) - $700,000
Rehabilitate asphalt pavement, striping, and improve
pedestrian safety as needed.
583 ( n ) Annual Local Street Improvements FY 2027/2028 - $1,800,000
Rehabilitate various local residential streets asphalt pavement, striping and pedestrian safety as needed.
584 ( n ) Annual Various Collector Street Improvements FY 2027/2028 - $1,500,000
Rehabilitate various collector streets asphalt pavement, striping and pedestrian safety as needed.
( c ) – Continuing project from previous years
( n ) – New project proposed for fiscal year 2027-2028
Overall Impact on Operating Budget
There is no financial impact to the General Fund for these projects.
These improvements in the City will benefit both citizens and visitors in the community. This will provide a safer place, as well as make the City more inviting to people visiting or wanting to move into the community.
101
CAPITAL IMPROVEMENT PROJECTS – PARKS / FACILITIES
FISCAL YEAR 2027-2028
JOB NO. PROJECT DESCRIPTION
558 ( n ) Gardena Willows Wetland Stormwater Enhancement (Construction Document Phase) - $500,000
Advance the completed feasibility study into construction- ready plans and specifications to implement nature-based stormwater improvements at Gardena Willows Wetland. The project is currently in the feasibility phase, funded and programmed by the County Safe Clean Water Program
under the South Santa Monica Bay Watershed Area.
( c ) – Continuing project from previous years,
( n ) – New project proposed for fiscal year 2027-2028
Overall Impact on Operating Budget
There is no financial impact to the General Fund for these projects.
These improvements in the City will benefit both citizens and visitors in the community. This will provide a safer place, as well as make the City more inviting to people visiting or wanting to move into the community.
102
FUNDING SOURCE STREETS, SEWER & STORMWATER IMPROVEMENTS PROJECT COST Measure R Highway #930 (c) Vermont Ave Traffic Signal Improvement 2,412,774 $2,412,774 Measure M Highway #945 (c) RBB Street Improvements (Crenshaw to Vermont) 10,413,746 #565 (c) Gardena Traffic Signal Network Upgrade 1,827,000 Measure M Highway 12,240,746 $12,240,746
SB 821 (TDA) #554 (c) Pedestrian Safety Improvements FY 2025-2026 143,000 $143,000 Prop C #935 (c) Artesia Blvd. Street Improvements (Western to Vermont) 746,064 #996 (n) Vermont Ave Street Improvements (Rosecrans to 135th) 800,000 #526 (c) Normandie (Artesia to 177th), Cassidey (Normandie to Vermont) and Vermont (177th to 182nd) Street Improvements 1,527,595
#543 (c) County Regional TSSP on El Segundo Blvd TSSP (At Budlong) 50,000 #556 (c) Western Ave Street Improvement 900,000
#576 (n) Various Collecor Street Improvements FY 2026-2027 600,000 Prop C - Total 4,623,659 $4,623,659
Gas Tax #507 (c) Citywide Wayfinding Program 63,171
#534 (c) County Regional TSSP on Manhattan Beach Blvd 55,000 Gas Tax - Total 118,171 $118,171
Measure M Local #518 (c) County Regional TSSP on Rosecrans 400,000 #545 (c) Annual Pedestrian Safety Improvements FY 2024-2025 97,873 #548 (c)
132nd St (Wilton to Western), 135th St (Western to Budlong), Marine Ave (Western to Vermont), 145th St (Gramercy to Western), and 166th St (Western to Normandie) Improvements 1,443,701
#554 (c) Pedestrian Safety Improvements FY 2025-2026 1,200,000 #556 (c) Western Ave Street Improvement 608,500
#557 (c) 157th, 162nd & 164th Street Improvements 650,000 #574 (n) 163rd Street & New Hampshire Ave Multiway Stop Control Improvements 70,000 #576 (n) Various Collecor Street Improvements FY 2026-2027 340,000 Measure M Local - Total 4,810,074 $4,810,074 SB 1 #553 (c) Local Street Improvements 2025-2026 2,662,951 #571 (n) Annual Local Street Improvements FY 2026-2027 1,708,905 SB1 - Total 4,371,856 $4,371,856
CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2026-2027 FUNDING SUMMARY 103
CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2026-2027 FUNDING SUMMARY
FUNDING SOURCE STREETS, SEWER & STORMWATER IMPROVEMENTS PROJECT COST Measure R Local #988 (c) Crenshaw Blvd St. Improvements - Rosecrans to El Segundo 705,821 #552 (c) County Regional TSSP on Crenshaw Blvd 250,000
#557 (c) 157th, 162nd & 164th Street Improvements 250,000 #572 (n) El Segundo Blvd Eastbound Street Improvements (Western to Vermont) 1,250,000 #573 (n) Vermont Ave & Gardena Blvd Signal Improvements 100,000 #574 (n) 163rd Street & New Hampshire Ave Multiway Stop Control Improvements 30,000 #575 (n) Citywide Pavement Management Program (PMP) Update 50,000 #576 (n) Various Collecor Street Improvements FY 2026-2027 320,000 Measure R Local - Total 2,955,821 $2,955,821 Sewer Fund #546 (c) Annual Sewer Improvements FY 2024-2025 2,772,570 #555 (c) Sewer Improvements FY2025-26 2,000,000
Sewer Fund - Total 4,772,570 $4,772,570
Measure W #820 (c) Mas Fukai Park Improvements 840,000
#568 (n) Mas Fukai Park & Peary Middle School Recycled Water Project 100,000 Measure W - Total 940,000 $940,000
Lighting District #506 (c) Gardena Decorative Street Lighting 213,944 $213,944 Other #526 (c)
( ), y ( ) (
182nd) Street Improvements 100,500 $100,500 STREETS, SEWER & STORMWATER IMPROVEMENTS SUBTOTAL $37,703,115 104
CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2026-2027 FUNDING SUMMARY
FUNDING SOURCE PARK/FACILITY IMPROVEMENTS PROJECT COST
Park Land in Lieu #820 (c) Mas Fukai Park Improvements 2,617,771 $2,617,771 Measure A #820 (c) Mas Fukai Park Improvements 3,126,024 $3,126,024 Bond Proceeds / Measure G #978 (c) Gardena Community Aquatic & Senior Center 552,082 #586 (n) Dog Park Project 200,000
Measure G - Total 752,082 $752,082
Federal Earmarks #820 (c) Mas Fukai Park Improvements 1,000,000 #505 (c) Rosecrans Community Center 1,000,000
Federal Earmarks - Total 2,000,000 $2,000,000 State Earmarks #820 (c) Mas Fukai Park Improvements 2,000,000 #520 (c) Rowley Park Gymnasium HVAC Upgrade 466,208
#560 (c) Fiber Infrastructure Upgrade 3,498,291
#561 (c) Rowley Park Gymnasium Renovation 2,388,523
State Earmarks - Total 8,353,022 $8,353,022
Development Impact Fee #528 (c) Civic Center Lighting Improvements 246,825 $246,825 Deferred Maintenance Fund #535 (c) Multi-Park Improvements 200,000 #541 (c) City Hall & PD Electrical Distribution System Upgrade 998,078 $566(c) Police Department GJIP Office Remodel 259,177
#578 (n) City Hall Office Remodel 500,000
#579 (n) Rush Gymnasium & Human Services Building Roof Rehabilitation 666,600 #580 (n) Public Works Maintenance Office Building Rehabilitation (Design Phase) 110,233 #581 (n) Public Works Yard Mechanic Shop Reconstruction 550,000 #585 (n) Public Works Administration/Engineering & Police Department Facilities Roof 462,000 Deferred Maintenance Fund - Total 3,746,088 $3,746,088 PARK/FACILITY IMPROVEMENTS SUBTOTAL $20,841,812
PROPOSED FISCAL YEAR 2026-2027 CIP BUDGET TOTAL $58,544,927 105
FUNDING SOURCE STREETS, SEWER & STORMWATER IMPROVEMENTS PROJECT COST Prop C #582 (n) Vermont Ave Street Improvement (El Segundo to 135th and Artesia to County Channel) 700,000 $700,000 SB1 #583 (n) Annual Local Street Improvements FY 2027-2028 1,800,000 $1,800,000 Measure R Local #584 (n) Annual Various Collector Street Improvements FY 2027-2028 500,000 $500,000 Measure M Local #584 (n) Annual Various Collector Street Improvements FY 2027-2028 1,000,000 $1,000,000 Measure W #558 (n) Gardena Willows Wetland Stormwater Enhancement 500,000 $500,000 STREETS, SEWER & STORMWATER IMPROVEMENTS SUBTOTAL $4,500,000 PROPOSED FISCAL YEAR 2027-2028 CIP BUDGET TOTAL $4,500,000 CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2027-2028 FUNDING SUMMARY 106
CAPITAL IMPROVEMENT PROJECT (CIP) STREET REHABILITATION TEN (10) YEAR PLAN - FISCAL YEARS ENDING 2026-2036 Prop C SB 821 Gas Tax SB1
Other
Grants Sewer Measure W Lighting Dist.
1,913$ R
996$
10,414 $ R
63$
214$
400$ L
55$
50$
250$ L
506$ L
2,773$
2,000$
1,528$ 101$
1,444$ L
2,663$
143$ 1,200$ L
900$ 609$ L
250$ L 650$ L
Annual Sewer Improvements FY 25/26
Annual Local St Improvements FY 25/26
Annual Ped Safety Improvements FY
FISCAL YEAR 2026-2027
Citywide Wayfinding/Entry Sign Program
Vermont Traffic Signal Improvement at
RBB & Rosecrans
Artesia Blvd. Street Improvements
(Western to Vermont)
RBB Street Improvements (Crenshaw to
Vermont)
Measure R* Measure M*
Gardena Decorative Street & String
Lighting
County Regional TSSP on Crenshaw Blvd
Normandie (Artesia to 177th), Cassidey
(Normandie to Vermont) and Vermont
(177th to 182nd) Street Improvements
NB Crenshaw Blvd Improvements (129th
to Rosecrans), Design Phase
County Regional TSSP on El Segundo Blvd
County Regional TSSP on Rosecrans
County Regional TSSP on MBB
Western Ave St Improvements (RBB to
Rosecrans)
157th St (Van Ness to Gramercy), 162nd
(Gramercy to Western), and 164th St
(Normandie to New Hampshire) Street
Improvements
132nd St (Wilton to Western), 135th St
(Western to Budlong), Marine Ave
(Western to Vermont), 145th St
Annual Sewer Improvements FY 24/25
* L - Local Share R - Regional/Highway funds
107
CAPITAL IMPROVEMENT PROJECT (CIP) STREET REHABILITATION TEN (10) YEAR PLAN - FISCAL YEARS ENDING 2026-2036 Prop C SB 821 Gas Tax SB1
Other
Grants Sewer Measure W Lighting Dist.Measure R* Measure M* 1,827$ R
100$
1,709$
100$ L
30$ L 70$ L
50$ L
800$
600$ 320$ L 340$ L
185$
1,750$ L
4,874$ 143$ 6,996$ 15,127 $ 303$ 4,372$ 101$ 4,773$ 100$ 214$ 700$
1,800$
500$ L 1,000$ L
700$ -$ 500$ 1,000$ -$ 1,800$ -$ -$ -$ -$ Gardena Traffic Signal Network Upgrade
Annual Local Street Improvements FY
27/28 at various locations
Public Works Equipment Purchase
Mas Fukai Park & Peary Middle School
Recycled Water Project (West Basin)
Annual Local St Improvements FY 26/27
Vermont Ave & Gardena Blvd Signal
Intersection Improvement (Study Phase)
163rd Street & New Hampshire Ave
Multiway Stop Control Improvements
Triannual Citywide PMP Update
El Segundo Blvd EB St Improvements
(Western to Vermont)
Vermont AveSt Improvements (135th to
Rosecrans)
Various Collector St Improvements FY
26/27
Annual Collector Street Improvements FY
27/28 at various locations
TOTAL Fiscal Year 2027 - 2028
TOTAL Fiscal Year 2026 - 2027
FISCAL YEAR 2027-2028
Vermont Ave St Improvments (El Segundo
to 135th and Artesia to Channel)
* L - Local Share R - Regional/Highway funds
108
CAPITAL IMPROVEMENT PROJECT (CIP) STREET REHABILITATION TEN (10) YEAR PLAN - FISCAL YEARS ENDING 2026-2036 Prop C SB 821 Gas Tax SB1
Other
Grants Sewer Measure W Lighting Dist.Measure R* Measure M* 1,200$
1,800$
500 L 1,000$ L
60$ 400$ L
1,000$
500$
1,200$ 60$ 500$ 1,400$ 1,800$ -$ -$ 1,500$ -$ -$ 1,200$
1,800$
60$ 400$ L
500 L 1,000$ L
1,000$
50$ L
1,200$ 60$ 500$ 1,450$ 1,800$ -$ -$ 1,000$ -$ -$ Annual Collector Street Improvements FY
29/30
TOTAL Fiscal Year 2029 - 2030
Annual Collector Street Improvements FY
28/29
Annual Sewer Improvements FY 29/30 at
various locations
Artreial Street Improvements
Annual Storm Drain Improvements FY
28/29 at various locations
Annual Local Street Improvements FY
28/29 at Various Locations
TOTAL Fiscal Year 2028 - 2029
Annaul Ped Safety Improvements FY
28/29 at Various Locations
Annual Sewer Improvements FY 28/29 at
various locations
FISCAL YEAR 2028 - 2029
Artreial Street Improvements
Annual Local Street Improvements FY
29/30 at Various Locations
Annaul Ped Safety Improvements FY
29/30 at Various Locations
Triannual Citywide PMP Update
FISCAL YEAR 2029 - 2030
* L - Local Share R - Regional/Highway funds
109
CAPITAL IMPROVEMENT PROJECT (CIP) STREET REHABILITATION TEN (10) YEAR PLAN - FISCAL YEARS ENDING 2026-2036 Prop C SB 821 Gas Tax SB1
Other
Grants Sewer Measure W Lighting Dist.Measure R* Measure M* 1,200$
1,800$
60$ 400$ L
500 L 1,000$ L
1,000$
500$
1,200$ 60$ 500$ 1,400$ 1,800$ -$ -$ 1,500$ -$ -$ 1,200$
1,800$
60$ 400$ L
500 L 1,000$ L
1,000$
1,200$ 60$ 500$ 1,400$ 1,800$ -$ -$ 1,000$ -$ -$ Annual Sewer Improvements FY 30/31 at
various locations
Annual Storm Drain Improvements FY
30/31 at various locations
Artreial Street Improvements
Annual Local Street Improvements FY
30/31 at Various Locations
Annaul Ped Safety Improvements FY
30/31 at Various Locations
Annual Local Street Improvements FY
31/32 at Various Locations
FISCAL YEAR 2030 - 2031
Annual Collector Street Improvements FY
30/31
TOTAL Fiscal Year 2031 - 2032
Annual Sewer Improvements FY 31/32 at
various locations
TOTAL Fiscal Year 2030 - 2031
Annual Collector Street Improvements FY
31/32
Artreial Street Improvements
Annaul Ped Safety Improvements FY
31/32 at Various Locations
FISCAL YEAR 2031-2032
* L - Local Share R - Regional/Highway funds
110
CAPITAL IMPROVEMENT PROJECT (CIP) STREET REHABILITATION TEN (10) YEAR PLAN - FISCAL YEARS ENDING 2026-2036 Prop C SB 821 Gas Tax SB1
Other
Grants Sewer Measure W Lighting Dist.Measure R* Measure M* 1,200$
1,800$
60$ 400$ L
500 L 1,000$ L
1,000$
500$
50$ L
1,200$ 60$ 500$ 1,450$ 1,800$ -$ -$ 1,500$ -$ -$ 1,200$
1,800$
60$ 400$ L
500 L 1,000$ L
1,000$
1,200$ 60$ 500$ 1,400$ 1,800$ -$ -$ 1,000$ -$ -$ Artreial Street Improvements
Annual Sewer Improvements FY 33/34 at
various locations
Triannual Citywide PMP Update
Annaul Ped Safety Improvements FY
32/33 at Various Locations
Annual Collector Street Improvements FY
32/33Annual Local Street Improvements FY
33/34 at Various Locations
Annual Collector Street Improvements FY
33/34
TOTAL Fiscal Year 2033 - 2034
Annaul Ped Safety Improvements FY
33/34 at Various Locations
FISCAL YEAR 2033 - 2034
TOTAL Fiscal Year 2032 - 2033
FISCAL YEAR 2032 - 2033
Artreial Street Improvements
Annual Sewer Improvements FY 32/33 at
various locations
Annual Storm Drain Improvements FY
32/33 at various locations
Annual Local Street Improvements FY
32/33 at Various Locations
* L - Local Share R - Regional/Highway funds
111
CAPITAL IMPROVEMENT PROJECT (CIP) STREET REHABILITATION TEN (10) YEAR PLAN - FISCAL YEARS ENDING 2026-2036 Prop C SB 821 Gas Tax SB1
Other
Grants Sewer Measure W Lighting Dist.Measure R* Measure M* 1,200$
1,800$
60$ 400$ L
500 L 1,000$ L
1,000$
500$
1,200$ 60$ 500$ 1,400$ 1,800$ -$ -$ 1,500$ -$ -$ 1,200$
1,800$
60$ 400$ L
500 L 1,000$ L
1,000$
500$
50$ L
1,200$ 60$ 500$ 1,450$ 1,800$ -$ -$ 1,500$ -$ -$ Artreial Street Improvements
Annual Local Street Improvements FY
35/36 at Various Locations
Annual Collector Street Improvements FY
34/35
FISCAL YEAR 2035 - 2036
Annual Sewer Improvements FY 34/35 at
various locations
Annual Storm Drain Improvements FY
34/35 at various locations
TOTAL Fiscal Year 2035 - 2036
Artreial Street Improvements
Annaul Ped Safety Improvements FY
34/35 at Various Locations
TOTAL Fiscal Year 2034 - 2035
Annual Local Street Improvements FY
34/35 at Various Locations
FISCAL YEAR 2034 - 2035
Triannual Citywide PMP Update
Annual Storm Drain Improvements FY
3/36 at various locations
Annual Sewer Improvements FY 35/36 at
various locations
Annual Collector Street Improvements FY
35/36
Annaul Ped Safety Improvements FY
35/36 at Various Locations
* L - Local Share R - Regional/Highway funds
112
DEBT SERVICE
PROPOSED BUDGET
FY 2026/27 & FY 2027/28
113
Series PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL Certificates of Participation (COPs):
2006 A¹ 21,010,000 27,690,971 48,700,971 3,820,000 509,124 4,329,124 800,000 218,196 1,018,196 3,020,000 290,928 3,310,928 2007 A 2,800,000 1,929,165 4,729,165 805,000 127,132 932,132 145,000 41,075 186,075 660,000 86,057 746,057 Lease Revenue Bonds:
2014¹ 9,110,000 8,035,249 17,145,249 8,535,000 2,984,270 11,519,270 75,000 426,148 501,148 8,460,000 2,558,122 11,018,122 2021 13,155,000 5,319,216 18,474,216 10,975,000 3,133,000 14,108,000 540,000 402,750 942,750 10,435,000 2,730,250 13,165,250 Taxable Pension Obligation Bonds:
2020³ 101,490,000 36,502,806 137,992,806 80,534,999 21,076,059 101,611,058 5,175,000 2,641,416 7,816,416 75,359,999 18,434,643 93,794,642 $154,065,000 $79,477,407 $233,542,407 $104,669,999 $27,829,585 $132,499,584 $6,735,000 $3,729,585 $10,464,585 $97,934,999 $24,100,000 $122,034,999 Professional services and Admin. Fees: 14,500$
TOTAL: $10,479,085
REVENUE SOURCES:
Transfer-in from General Fund 8,677,404$
Transfer-in from GTrans Fund 1,640,667$
Transfer-in from Sewer Fund 76,601$
Transfer
-in from Grant Funds 84,413$
10,479,085$
¹ In Fiscal Year 2014/2015, 2006 Series B was refunded by the 2014 Taxable Lease Revenue Refunding Bonds. ² Of the original principal issued, $79,193,585 was allocated to governmenal activities (General) and $22,296,415 was allocated to business-type activities (Enterprise).
CITY OF GARDENA
FISCAL YEAR 2026-2027
DEBT SERVICE REQUIREMENTS
ORIGINAL ISSUE BEGINNING BALANCE July 1, 2026 RETIRED FY 2026-27 ENDING BALANCE June 30, 2027 114
Series PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL Certificates of Participation (COPs):
2006 A¹ 21,010,000 27,690,971 48,700,971 3,020,000 290,928 3,310,928 850,000 165,561 1,015,561 2,170,000 125,367 2,295,367 2007 A 2,800,000 1,929,165 4,729,165 660,000 86,057 746,057 155,000 33,825 188,825 505,000 52,232 557,232 Lease Revenue Bonds:
2014¹ 9,110,000 8,035,249 17,145,249 8,460,000 2,558,122 11,018,122 80,000 422,586 502,586 8,380,000 2,135,536 10,515,536 2021 13,155,000 5,319,216 18,474,216 10,435,000 2,730,250 13,165,250 565,000 375,750 940,750 9,870,000 2,354,500 12,224,500 Taxable Pension Obligation Bonds:
2020³ 101,490,000 36,502,806 137,992,806 75,359,999 18,434,643 93,794,642 5,295,000 2,518,976 7,813,976 70,064,999 15,915,667 85,980,666 $154,065,000 $79,477,407 $233,542,407 $97,934,999 $24,100,000 $122,034,999 $6,945,000 $3,516,698 $10,461,698 $90,989,999 $20,583,302 $111,573,301 Professional services and Admin. Fees: 15,000$
TOTAL: 10,476,698$
REVENUE SOURCES:
Transfer-in from General Fund 8,675,704$
Transfer-
in from GTrans Fund 1,640,155$
Transfer-in from Sewer Fund 76,577$
Transfer-in from Grant Funds 84,262$
10,476,698$
¹ In Fiscal Year 2014/2015, 2006 Series B was refunded by the 2014 Taxable Lease Revenue Refunding Bonds. ² Of the original principal issued, $79,193,585 was allocated to governmenal activities (General) and $22,296,415 was allocated to business-type activities (Enterprise).
ENDING BALANCE June 30, 2028ORIGINAL ISSUE BEGINNING BALANCE July 1, 2027 RETIRED FY 2027-28
CITY OF GARDENA
FISCAL YEAR 2027-2028
DEBT SERVICE REQUIREMENTS
115
BOND ISSUES: CITY OF GARDENA
Refunding Certificates of Participation
DATE OF ISSUES: June 7, 2006
AMOUNT OF ISSUE: $21,010,000.00
AMOUNT OUTSTANDING: $3,820,000.00 *
(June 30, 2026)
DESCRIPTION: The 2006 Refunding Certificates of Participation Series AB&C are issued to (1) refinance certain financial obligations of the City in connection with a Memorandum of Understanding with certain financial institutions, (2) prepay and defease certain outstanding 1994 Refunding Certificates of Participation, (3) fund a reserve fund and (4) pay certain costs of issuance.
The total $21,010,000 includes $12,495,000 aggregate principal amount of Certificates of Participation (2006 Refinancing Project, Series A), and $8,515,000 aggregate principal amount of Certificates of Participation Series B (the 2006C Certificates.) *Note-In Fiscal Year 2014-2015 the 2006 Certificate of Participation, Series B, was refunded by the 2014 Taxable Lease Revenue Refunding Bonds, Series 2014. The econmic gain on the current refunding was $1,637,398 and the savings in debt service payments was $2,360,051.
The bond interest rates vary from 3.625% to 4.500%.
PAYMENT DATES: January 1 and July 1
PAYMENT AGENT: US Bank
FY 2025-26 FY 2026-27 FY 2027-28
REVENUE SOURCES
Transfer-in from General Fund 1,020,391 1,021,096 1,018,561 TOTAL: 1,020,391$ 1,021,096$ 1,018,561$
EXPENDITURES
Interest Expense 267,641 218,196 165,561 Principal payment 750,000 800,000 850,000 Administration and trustee fees 2,750 2,900 3,000 TOTAL: 1,020,391$ 1,021,096$ 1,018,561$
DEBT SERVICE REQUIREMENTS
DEBT SERVICE REQUIREMENTS
2006 REFUNDING CERTIFICATES OF PARTICIPATION SERIES A
(Issued in 2006)
116
BOND ISSUES: CITY OF GARDENA
South Bay Communication Center
DATE OF ISSUES: January 24, 2007
AMOUNT OF ISSUE: $2,800,000.00
AMOUNT OUTSTANDING: $805,000.00
(June 30, 2026)
DESCRIPTION: The 2007 A Refunding Revenue Bonds are issued pursuant to Indenture of Trust, dated as of February 1, 2007 by and between the South Bay Regional Public Communications Authority (SBRPCA), and the Bank of New York Trust Company, N.A. as trustee. The bonds are issued to refund SBRPCA Revenue Bonds 2001Series A (City of Gardena Project) in an amount of $2,800,000, to fund the Reserve Account, and to pay certain costs of issuance.
PAYMENT DATES: January 1 and July 1
PAYMENT AGENT: Bank of New York Trust Company
FY 2025-26 FY 2026-27 FY 2027-28
REVENUE SOURCES
Transfer-in from General Fund 185,575 188,975 191,825 TOTAL: 185,575$ 188,975$ 191,825$
EXPENDITURES
Interest Expense 47,825 41,075 33,825 Principal payment 135,000 145,000 155,000 Trustee admin. services 2,750 2,900 3,000 TOTAL: 185,575$ 188,975$ 191,825$
DEBT SERVICE REQUIREMENTS
DEBT SERVICE REQUIREMENTS
2007 REVENUE BONDS SERIES A
(Issued in 2007)
117
BOND ISSUES: CITY OF GARDENA
Taxable Lease Revenue Refunding Bonds
DATE OF ISSUES: May 1, 2015
AMOUNT OF ISSUE: $9,110,000.00
AMOUNT OUTSTANDING: $8,535,000.00
(June 30, 2026)
DESCRIPTION: The 2014 Taxable Lease Revenue Refunding Bonds, were issued to (1) refund the 2006B Certificates, (2) fund capitalized interest for a portion of the Bonds through May 1, 2017, and (3) pay a portion of the costs of issuance.
The bond interest rates vary from 3.950% to 5.000%.
PAYMENT DATES: May 1 and November 1
PAYMENT AGENT: US Bank
FY 2024-26 FY 2026-27 FY 2027-28
REVENUE SOURCES
Transfer-in from General Fund 507,459 504,048 505,586 TOTAL: 507,459$ 504,048$ 505,586$
EXPENDITURES
Interest Expense 429,709 426,148 422,586 Principal payment 75,000 75,000 80,000 Administration and trustee fees 2,750 2,900 3,000 TOTAL: 507,459$ 504,048$ 505,586$
DEBT SERVICE REQUIREMENTS
2014 TAXABLE LEASE REVENUE REFUNDING BONDS
(Issued in 2015)
DEBT SERVICE REQUIREMENTS
118
BOND ISSUES: CITY OF GARDENA
Taxable Pension Obligation Bonds
DATE OF ISSUES: November 1, 2020
AMOUNT OF ISSUE: $101,490,000.00 ($79,193,585 General and $22,296,415 Enterprise) AMOUNT OUTSTANDING: $80,535,000.00 ($62,842,400 General and $17,692,600 Enterprise) (June 30, 2026)
DESCRIPTION: The 2020 Taxable Pension Obligation Bonds were issued to (1) finance a portion of the City's unfunded accrued actuarial liability to the California Public Employees' Retirement System (CalPERS) and (2) pay the costs of issuance of the bonds. Of the original principal issued, $79,193,585 was allocated to governmenal activities (General) and $22,296,415 was allocated to business-type activities (Enterprise).
The bond interest rates vary from 1.081% to 3.363%.
PAYMENT DATES: April 1 and October 1
PAYMENT AGENT: US Bank
FY 2025-26 FY 2026-27 FY 2027-28
REVENUE SOURCES
Transfer-in from General Fund 5,961,678 6,014,738 6,012,985 Transfer-in from GTrans Fund 1,641,685 1,640,667 1,640,155 Transfer-in from Sewer Fund 76,649 76,601 76,577 Transfer-in from Grant Funds 144,004 84,410 84,259 TOTAL: 7,824,016$ 7,816,416$ 7,813,976$
EXPENDITURES
Interest Expense 2,746,266 2,641,416 2,518,976 Principal payment 5,075,000 5,175,000 5,295,000 Administration and trustee fees 2,750 2,900 3,000 TOTAL: 7,824,016$ 7,819,316$ 7,816,976$
DEBT SERVICE REQUIREMENTS
2020 TAXABLE PENSION OBLIGATION BONDS
(Issued in 2020)
DEBT SERVICE REQUIREMENTS
119
BOND ISSUES: CITY OF GARDENA
Lease Revenue Bonds
DATE OF ISSUES: September 1, 2021
AMOUNT OF ISSUE: $13,155,000.00
AMOUNT OUTSTANDING: $10,975,000.00
(June 30, 2026)
DESCRIPTION: The 2021 Lease Revenue Bonds were issued to (1) finance a portion of the costs of construction of the new Gardena Community Aquatic & Senior Center, (2) finance the costs of acquiring and renovating an existing building to be converted into a new Community Center, (3) finance various park improvements, and (4) pay the costs of issuance.
The bond interest rates vary from 3.000% to 5.000%.
PAYMENT DATES: May 1 and November 1
PAYMENT AGENT: US Bank
FY 2025-26 FY 2026-27 FY 2027-28
REVENUE SOURCES
Transfer-in from General Fund 941,000 945,650 943,750 TOTAL: 941,000$ 945,650$ 943,750$
EXPENDITURES
Interest Expense 428,250 402,750 375,750 Principal payment 510,000 540,000 565,000 Administration and trustee fees 2,750 2,900 3,000 TOTAL: 941,000$ 945,650$ 943,750$
DEBT SERVICE REQUIREMENTS
2021 LEASE REVENUE BONDS
(Issued in 2021)
DEBT SERVICE REQUIREMENTS
120
INTERNAL SERVICE FUNDS
PROPOSED BUDGET
FY 2026/27 & FY 2027/28
121
INTERNAL SERVICE FUNDS
Internal Service Funds are established to cover the cost of insurance and other ongoing administrative obligations and to separate these funds from the G eneral Fund account . The City is self -insured for general liability, worker’s compensation and employee health benefits coverage. Funds in these accounts are used to pay all self -insured losses and related administrative costs with the balance in each account at the end of the fiscal year accumulated as reserves against future liabilities.
SELF - INSURANCE PROGRAMS
The City retains the services of Third- Party Administrators (TPA) to handle claims for general liability, worker’s
compensation and health care claims. Current services are provided by:
General Liability Claims – Carl Warren & Co.
Workers Compensation Claims – LWP Claims Solutions
Health Benefits Plan – Pinnacle Claims Management
• General Liability
The General Liability Fund provides for the City's general liability, self-insurance program, and other insurance needs in order to reduce cost and provide better control; to provide for the administration and legal service necessary for the operation of this program; to provide insurance protection against catastrophic loss or losses and to provide payment of liability insurance purchased in excess of the City’s self- insurance limits.
Charges to departments are established by the Director of Administrative Services and included in the budget manual.
Upon recommendation from the finance committee,
additional reserves may be transferred at year-end from the General Fund reserves.
• Workers Compensation
The Workers Compensation Fund is established to pay
administrative and legal services necessary for the
operation of this program; to provide payment of
compensation benefits and medical expenses associated
with industrial injuries; to provide insurance protection against a catastrophic loss or losses; to review and analyze the City’s industrial injury risks and determine the most suitable means of reducing employee exposure, and to
develop procedures for the administration of the City’s Self- Insurance Compensation and Safety Program.
Charges to departments are established by the Director of Administrative Services and included in the budget manual.
PUBLIC SERVICE GOAL: To continually build and maintain adequate reserves through annual budget contributions to protect the City’s investment in the cost of insurance and other ongoing administrative obligations. 122
INTERNAL SERVICE FUNDS
• Health Benefits
The City is self-insured for health benefits for its employees and purchases reinsurance to transfer some of its risk.
Rates are set by the Health Benefits Committee, which is comprised of management and one employee from each of
the employee bargaining groups. The committee reviews
the cost of health care, changes in benefits, and market trends in order to establish the rate for health insurance.
Fund levels are set at a 70% confidence rate.
The fund is supported through contributions of both
employees and the City as negotiated each year with the employee bargaining groups. The City’s contribution is
$1,807 per month for the employee and one dependent.
Employees contribute an additional $494 per month if they have more than one dependent insured. Rates for life
insurance varies depending on the bargaining group.
PUBLIC SERVICE GOAL: To continually build and maintain adequate reserves through annual budget contributions to protect the City’s investment in the cost of insurance and other ongoing administrative obligations. 123
Internal Service Funds Audited
2024-2025
Adopted
2025-2026
Proposed
2026-2027
Proposed
2027-2028
Self-Insurance Liability 5,369,627 3,610,049 3,871,277 3,999,534 Self-Insurance Workers Comp 3,607,991 2,651,776 2,877,272 3,217,782 Self-Insurance Health Benefit Fund 12,455,712 12,872,953 17,744,092 19,127,170 Total Internal Service Funds 21,433,329 19,134,778 24,492,641 26,344,486 Self-Insurance
Liability
15%
Self-Insurance
Workers Comp
12%
Self-Insurance
Health Benefit Fund
73%
124
APPENDIX
125
ACCOUNTING SYSTEM
The total set of records and procedures that are used to record, classify, and report information on the financial status and operations of an entity.
ACCOUNTS PAYABLE
Amounts owing to private persons, firms, or corporations for goods and services received.
ACCOUNTS RECEIVABLE
Amounts owing from private persons, firms, or corporations for goods and services furnished.
ACCRUAL
Transactions and events are recognized as revenues/gains or expenses/losses when they occur, regardless of the timing of the related cash flows.
ADOPTION
Formal action by the City Council that sets the spending path for the fiscal year.
ALLOCATION
The practice of spreading costs among various cost centers on some predetermined reasonable basis (e.g., percentages) as opposed to distribution of expenses on a unit charge or direct identification basis.
ACTIVITY
A specific unit of work or service performed.
APPROPRIATION
An authorization made by the City Council that permits officials to incur obligations against and to make expenditures of governmental resources. Appropriations are usually made for fixed amounts and are typically granted for a one-year period.
APPROPRIATION ORDINANCE
The official enactment by the City Council establishing the legal authority for the City officials to obligate and expend resources.
ASSESSED VALUATION
The estimated value placed upon real and personal property by the County Assessor as the basis for levying property taxes.
ASSETS
The entries on a balance sheet showing all properties and claims against others that may be used directly or indirectly to cover liabilities.
AUDIT
A systematic examination of resource utilization concluding in a written report. It is a test of management’s internal accounting controls and is intended to:
• Ascertain whether financial statements fairly present financial positions and results of operations;
• Test whether transactions have been legally performed; • Identify areas for possible improvements in accounting practices and procedures;
• Ascertain whether transactions have been recorded accurately and consistently; and
• Ascertain the managerial conduct of officials responsible for governmental resources.
BALANCE SHEET
A statement purporting to present the financial position of an entity by disclosing its assets, liabilities, and fund equities as of a specific date.
Under varying circumstances, assets are carried at “lower of cost or market,” “cost less allowance for depreciation,” etc.
BOND (Debt Instrument)
A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long- term debt to pay for specific capital expenditures.
BUDGET (Operating)
A plan of financial operation embodying an estimate of proposed expenditures for a given period (typically a fiscal year) and the proposed means of financing them (revenue estimates). The term is also sometimes used to denote the officially approved expenditure ceilings under which the City and its departments operate .
BUDGET CALENDAR
The schedule of key dates or milestones which the City follows in the preparation and adoption of the budget.
126
BUDGET MESSAGE (City Manager’s)
A general discussion of the proposed budget presented in writing as a part of, or supplement to, the budget document. The budget message explains principal budget issues against the background of financial experience in recent years and presents recommendations made by the City Manager
.
CAPITAL ASSETS
Assets of significant value and having a useful life of more than one year. Capital assets are also called fixed assets.
CAPITAL BUDGET
A plan of proposed capital expenditures and the means of financing them. The capital budget is enacted as part of the City’s consolidated budget which includes both operating and capital outlays, and is based on a capital improvement program (CIP).
CAPITAL IMPROVEMENT PROGRAM (CIP)
A plan for capital expenditures to be incurred each year over a period of ten future years setting forth each capital project, the amount to be expended in each year, and the method of financing those expenditures.
CAPITAL OUTLAYS
Expenditures for the acquisitions of capital assets. Includes the cost of land, buildings, permanent improvements, machinery, large tools, rolling, and stationary equipment.
CAPITAL PROJECTS
Projects which purchase or construct capital assets. Typically a capital project encompasses a purchase of land and/or the construction of a building or facility.
CAPITAL PROJECTS FUND
Used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds).
CERTIFICATE OF DEPOSIT
A negotiable or non-negotiable receipt for monies deposited in a bank or financial institution for a specified period and rate of interest.
COMMODITIES
Items of expenditure (in the operating budget) which after use, are consumed or show a material change in their physical condition, and which are generally of limited value and are characterized by rapid depreciation, i.e. office supplies and motor fuel.
CONTINGENCY
A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted for.
CONTRACTUAL SERVICES
Items of expenditure for services the City receives from an internal service fund or an outside company. Utilities, rent and maintenance service agreements are examples of contractual services.
CONSUMER PRICE INDEX (CPI):
A statistical description of price levels provided by the U.S. Department of Labor. The change in this index from year to year is used to measure the cost of living and economic inflation.
DEBT SERVICE
Payment of interest and repayment of principal to holders of the City’s debt instruments.
DEBT SERVICE FUND
Used to account for the accumulation of resources for, and payment of, general long-term debt.
DEFICIT
• The excess of entity’s liabilities over its assets (See Fund Balance). • The excess of expenditures or expenses over revenues during a single accounting period.
DEPARTMENT
An organizational unit comprised of one or more divisions.
DEPRECIATION
Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence.
• That portion of the cost of a capital asset, which is charged as an expense during a particular period.
DEBT RATIO
A ratio that indicates the proportion of debt compared to assets, calculated by dividing total debt by total assets.
127
DIVISION
A program or activity, within a department, that furthers the objectives of the City Council by providing services or products.
ENCUMBRANCES
Obligations in the form of purchase orders or contract commitments, which are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when paid or when an actual liability is set up.
ENTERPRISE FUND
Separate financial accounting used for government operations that are financed and operated in a manner similar to business enterprises, and where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public be financed or recovered primarily through user charges, or where the governing body had decided that periodic determination of net income is appropriate for capital maintenance, public policy, management control, or other purposes (i.e. utilities and transit systems).
EXPENDITURES
Where accounts are kept on the accrual or modified accrual basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments for the above purposes are made.
FEE
A payment or charge levied by a government entity for a specific service or good.
FISCAL YEAR
The City’s fiscal year is based on the twelve- month period beginning July 1st and ending the following June 30th.
FIXED CHARGES
Items of expenditure for services rendered by internal operations of the City. Examples include: rental equipment, computer services, building rental, indirect operating expenses, and depreciation.
FRINGE BENEFITS
Included are employee retirement, social security, Medicare, health, dental, life insurance, workers’ compensation, uniforms, and deferred compensation plans.
FULL FAITH AND CREDIT
A pledge of the City’s taxing power to repay debt obligations (typically used in reference to General Obligation Bonds or tax-supported debt).
FUND
An independent fiscal and accounting entity with a self -balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives.
FUND BALANCE
The excess of an entity’s assets over its liabilities. A negative fund balance is sometimes called a deficit.
GANN LIMIT
In November 1979, the voters of California approved Proposition 4, commonly known as the Gann Initiative. This proposition created Article XIII B of the State Constitution placing limits on the amount of revenue that can be appropriated by all government entities in any fiscal year. The legislation mandates all governing bodies to annually establish the Appropriations Limit.
GENERAL FUND
The fund supported by taxes, fees and other revenues that may be used for any lawful purpose. The general fund accounts for all financial resources except those required to be accounted for in another fund.
GENERAL OBLIGATION BONDS
When the City pledges its full faith and credit to the repayment of the bonds it issues, then those bonds are general obligation (G.O.) bonds.
Sometimes the term is also used to refer to bonds, which are to be repaid from taxes and other general revenues. In California, G.O. bonds must be authorized by public referenda with two- thirds voter approval.
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
To establish and improve standards in governmental accounting and financial reporting that will result in useful information. 128
INTERGOVERNMENTAL GRANT
A contribution of assets (usually cash) by one governmental unit or organization to another. Typically, these contributions are made to local governments from the State and Federal governments. Grants are usually made for specified purposes.
INTERNAL SERVICE FUND
Funds used to account for the financing of goods or services provided by one department or agency to another department or agency within the same organization.
INVESTMENT
Securities and real estate purchased and held for the production of income in the form of interest, dividends, rental or base payments.
LIABILITY
Debt or other legal obligations arising out of transactions in the past, which must be liquidated, renewed or refunded at some future date; financial obligations entered in the balance sheet. NOTE: The term does not include encumbrances.
MATURITIES
The dates on which the principal or stated values of investments or debt obligations mature and may be reclaimed.
MODIFIED ACCRUAL
Revenues are recognized when measurable and available to liquidate liabilities of the current period. Expenditures are recognized when an event or transaction is expected to draw on current or available resources.
MUNICIPAL CODE
A book containing City Council Approved Ordinances currently in effect. The Code defines City Policy in various categories (i.e., building regulations, planning and zoning regulations, sanitation and health standards, and traffic regulations).
OBJECT OF EXPENDITURE
Expenditure classifications based upon the types of categories of goods and services purchased. Examples include:
• personnel services (salaries and wages)
• contractual services (utilities, maintenance contracts, travel) • commodities
• fixed charges (rental of City equipment, City building rental) • capital outlays
OBJECTIVES
Departmental statements describing significant activities to be accomplished during the fiscal year.
OPERATING FUNDS
Resources derived from recurring sources used to finance ongoing operating expenditures and pay-as-you-go capital projects.
ORDINANCE
A formal legislative enactment by the governing board (City Council) of a municipality. If it is not in conflict with any higher form of law, it has the full force and effect of law within the boundaries of the municipality to which it applies.
PERFORMANCE MEASURES
Specific quantitative measures of work performed within an activity or program (e.g., total miles of streets cleaned). A specific quantitative measure of results obtained through a program or activity (e.g., reduced incidence of vandalism due to new street lighting program).
PERSONNEL SERVICES
Items of expenditures in the operating budget for salaries and wages paid for services performed by City employees, the incident fringe benefit cost associated with City employment, and amounts paid to outside firms, consultants, or individuals for contract personnel services.
PROGRAM
An activity, or division, within a department, which furthers the objectives of the City Council, by providing services or a product.
RATING
The credit worthiness of a City as evaluated by independent agencies.
REIMBURSEMENTS
Payments remitted by another agency, department, or fund to help defray the costs of a particular service or activity for which some benefit was obtained by the reimbursing party. These amounts are recorded as expenditures, or expenses in the reimbursing fund and as a reduction of expenditures, or expenses, in the fund that is reimbursed.
129
RESERVE
An account used to indicate that a portion of fund equity is legally restricted for a specific purpose, or set aside for emergencies or unforeseen expenditures not otherwise budgeted for. Reserve accounts can also be used to earmark a portion of fund balance to indicate that it is not appropriate for expenditures
.
RESOLUTION
A special order of the City Council which requires less legal formality than an Ordinance in terms of public notice and the number of public readings prior to approval. A Resolution has lower legal standing than an Ordinance. The adopted operating budget is approved by Resolution and requires a majority vote of the Council members present at the time of adoption.
RESOURCES
Total dollars available for appropriations including estimated revenues, fund transfers, and beginning fund balances.
REVENUE
The term designates an increase to a fund’s assets which:
• does not increase a liability (e.g., proceeds from a loan); • does not represent a repayment of an expenditure already made; • does not represent a cancellation of certain liabilities; and • does not represent an increase in contributed capital.
REVENUE BONDS
When a government issues bonds, which do not pledge the full faith and credit of the jurisdiction, it issues limited liability revenue bonds.
Typically, pledges are made to dedicate one specific revenue source to repay these bonds. In addition to a pledge of revenues, such bonds sometimes may be secured by a lien against property.
REVENUE ESTIMATES
A formal estimate of how much revenue will be earned from a specific revenue source for some future period; typically, a future fiscal year.
REVOLVING ACCOUNT
A reserve account that is funded by the amortization of a capital asset value charged annually to the user department with the accumulated funds used to replace the asset when it has reached the end of its normal life cycle.
SALARIES AND BENEFITS
An operating budget category which generally accounts for full -time and part-time salaries, overtime costs, and fringe benefits.
SOURCE OF REVENUE
Revenues are classified according to their source or point of origin.
SPECIAL REVENUE FUND
Used to account for the proceeds of special revenue sources that are restricted by law (or administrative action) to expenditures for specific purposes.
SUPPLIES AND SERVICES
This budget category accounts for all nonpersonnel, and noncapital outlay expenses (i.e., building/structure maintenance, contractual services, equipment maintenance, office supplies, small tool purchases, and utility costs).
TAXES
Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits, such as special assessments. Neither does this term include charges for services rendered only to those paying such charges.
TRIPLE-FLIP
The revenue formula the State of California imposed on local government. The formula modifies (flips) the rate of distribution of three (triple) revenue sources that are passed through and distributed by the State: property tax, sales tax and motor vehicle-in-lieu fees.
TRANSFERS IN/OUT
Payments from one fund to another fund, primarily for work or services provide
d.
TRUST AND AGENCY FUND
A type of fund that temporarily holds monies for other agencies or legal entities.
UNIT COST
The cost required to produce a specific product or unit of service (e.g., the cost to purify one thousand gallons of water).
130
USER CHARGES (also known as USER FEES)
The payment of a fee for direct receipt of a public service by the party benefiting from the service.
YIELD
The rate earned on an investment based on the price paid.
131
AB Assembly Bill
ABC Alcoholic Beverage Control
ADA American Disabilities Act
AQMD Air Quality Management District
ASST Assistant
ATF Alcohol Tobacco and Firearms, US Bureau of
ATM Automated Teller Machine
AVE Avenue
BJA Bureau of Justice Assistance
BLDG Building
BLVD Boulevard
CA California
CAMP California Asset Management Program
CAPE Community Action Project for the Elderly
CCW Concealed Carry Weapon
CDBG Community Development Block Grant
CDE California Department of Education
CEO Chief Executive Officer
CEQA California Environmental Quality Act
CPF Community Project Funding
CHGS Charges
CIP Capital Improvement Projects
CO Company
CO-ED Co-educational
C of O Certificate of Occupancy
COLA Cost of Living Adjustment
COPS Citizen Option for Public Safety
CORP Corporation
CPI Consumer Price Index
CSMFO California Society of Municipal Finance Officers
DEMO Demolition
DEV Development
DHS Department of Homeland Security
DIST District
DMH Department of Mental Health
DOC Document
DUI Driving Under the Influence
EAP Employee Assistance Program
E.G. For Example (Exempli Gratia)
ENF Enforcement
EPA Environmental Protection Agency
ERAF Educational Relief Augmentation Fund
ETC Etcetera
EXP Expense
FEMA Federal Emergency Management Agency
FPPC Fair Public Practices Commission
FY Fiscal Year
GAAFR Governmental Accounting, Auditing and Financial
Reporting
GAAP Generally Accepted Accounting Practices
GAAS Generally Accepted Auditing Standards
GASB Governmental Accounting Standards Board
GEBAC Gardena Business Economic Advisory Commission
GEPCO Gardena Employee Personal Computer Opportunity
GFCC Gardena Family Child Care
GFOA Government Finance Officers Association
GIS Geographic Information System
GMBL Gardena Municipal Bus Line
GMC Gardena Municipal Code
GRAGA Gardena Royal and Ancient Golf Association
HS Human Services
HUD U.S. Department of Housing and Urban
Development
HVAC Heating, Ventilation, and Air Conditioning
ICMA International City/County Management Association
i.e. (Latin: id est) that is
IMPR Improvement
INC. Incorporated
IND Industrial
JAG Justice Assistance Grant Program
132
JR. Junior
JT POWERS Joint Powers
L.A. Los Angeles
LACDACC Los Angeles County Department of Animal Care and Control
LACoFD Los Angeles County Fire District
LP Limited Partnership
LAIF Local Agency Investment Fund
LED Light-emitting Diode
LTD. Limited
MAINT Maintenance
MDC Mobile Data Computers
MDT Mobile Data Terminals
MGMT Management
MGR. Manager
MIC Management Information Center
MISC. Miscellaneous
MTA Metropolitan Transportation Authority
N.A. National Association
NPDES National Pollutant Discharge Elimination System
OAA Older Americans Act
OCJP Office of Criminal Justice Planning
OJP Office of Justice Programs
OPEB Other Post-Employment Benefits
OSHA Occupational, Safety and Health Administration
OTS Office of Traffic Safety
PARS Public Agency Retirement System
PERS Public Employee's Retirement System
PK. Park
PL Place
PO Purchase Order
POST Police Officers Standards and Training
PRIM Primary
PROG Program
PSI Progressive Solutions, Inc.
PT Part-time
QR CODE Quick-Response Code
RCC Regional Communication Center
REC. Recreation
RFP Request for Proposal
SB Senate Bill
S.B.R.P.C.A. South Bay Regional Public Communications
Authority
SCAG Southern California Association of Governments
SCAMP Senior Community Action Meals Program
SCAMP HD Senior Community Action Meals Program-Home
Delivered
SCE Southern California Edison
SDCC Senior Day Care Center
SLESF Supplemental Law Enforcement Services Fund
SPORTS Service Providing Opportunities through
Recreational Training & Support
SR. Senior
ST Street
STC Standards and Training for Corrections Division
STEP Strategic Traffic Enforcement Program
STIP State Transportation Improvement Program
STPLHG Surface Transportation Program Local Hazard Grant SUBVN Subvention
TDA Transportation D evelopment Act
TEA 21 Transportation Equity Act for the 21st Century
TECH Technical
TRANS Tax and Revenue Anticipation Notes
TRAP Taskforce For Regional Auto Theft Prevention
TRG Training
US United States
USDOJ U.S. Department of Justice
WRG Waste Resources of Gardena
YMCA Young Men's Christian Association
133
City of Gardena
Gardena City Council
Meeting
AGENDA REPORT
SUMMARY
Agenda Item No. 13B.
Section: DEPARTMENTAL
ITEMS - ADMINISTRATIVE
SERVICES
Meeting Date: June 23,
2026
TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE: PUBLIC HEARING: RESOLUTION NO. 6739, Establishing the Appropriations Limit for Fiscal Year 2026-2027 (GANN Limit)
COUNCIL ACTION REQUIRED:
Staff Recommendation:
Open Public Hearing
Receive Testimony from the Public, Allow Three (3) Minutes for Each Speaker Close the Public Hearing
Adopt Resolution No. 6739
RECOMMENDATION AND STAFF SUMMARY:
In 1979, Proposition 4, known as the GANN Initiative, was approved by the voters. As a result, Article XIII (B) of the State statute (Government Code, Section 7900-10) was enacted and requires that each year thereafter the governing body of each local jurisdiction shall, by resolution, establish its Appropriations Limit for the following fiscal year. Proposition 111, approved by the voters in 1990, amended Article XIII (B) further, and City Council action is necessary to implement the amendments effective for Fiscal Year 2026-2027. The amendments of Proposition 111 specify that the annual adjustment factor in calculating the Appropriations Limit will be increased by:
The change in population growth for the City OR County, whichever has the higher population growth rate.
The change in California per capita personal income OR
The growth in non-residential assessed valuation due to new construction within the City.
Pursuant to Proposition 111 amendments and upon City Council approval, staff has calculated the Fiscal Year 2026-2027 Appropriations Limit using the City's population change and the percentage change in per capita personal income in California.
The Appropriations Limit for Fiscal Year 2026-2027 is $162,192,853, with appropriations of $89,812,078, subject to the limit, leaving a remaining appropriations capacity of $72,380,775. The Appropriations Limit calculation formula is attached as reference (Exhibit A).
The Appropriations Limit for Fiscal Year 2026-2027 was publicly noticed in the Gardena Valley News (GVN) on June 11, 2026.
Staff recommends that the City Council adopt Resolution No. 6739, which establishes the GANN Limit for Fiscal Year 2026-2027 at $162,192,853.
FISCAL IMPACT/COST:
Appropriations Limit $162,192,853
Funding Source All Revenue Sources
Appropriations Subject to Limit $89,812,078
Remaining Appropriations Capacity $72,380,775
APPROVED:
___________________________
Clint Osorio, City Manager
Attachments
Resolution No. 6739 - GANN Limit FY 26-27 with Exhibit A.pdf 1 RESOLUTION NO. 6739
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GARDENA, CALIFORNIA, ESTABLISHING ITS
APPROPRIATIONS LIMIT FOR FISCAL YEAR 2026-2027
WHEREAS, the Government Code section 7910 requires the City Council to establish its appropriations limit pursuant to Article XIII B of the State Constitution, and;
WHEREAS, said appropriations limit for fiscal year 2026-2027 has now been calculated to be $162,192,853.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GARDENA , CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE, AS FOLLOWS:
SECTION 1. That the spending limit calculation for fiscal year 2026- 2027 is set forth in “Exhibit A” attached hereto and incorporated herein as if fully set forth. The annual adjustment factors used in making such calculation are the cost of living adjustment – CPI based on the percentage change in California per capita incom e and the population adjustment based on the annual population change for the City of Gardena.
“The City of Gardena reserves the right to change
or revise any growth factors associated with the
calculation of the Proposition 111 limit if such
changes or revisions would result in a more
advantageous appropriations limit.”
SECTION 2.
That this Resolution shall be effective immediately.
BE IT FURTHER RESOLVED that the City Clerk shall certify to the passage and adoption of this Resolution; shall cause the same to be entered among the original Resolutions of said City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the meeting at which the same is passed and adopted.
Passed, approved, and adopted this 23rd day of June, 2026.
TASHA CERDA, Mayor
ATTEST:
MINA SEMENZA, City Clerk
Docusign Envelope ID: 48643680-ECF8-88F5-80C3-42ACCB05C562 RESOLUTION NO. 6739
2 APPROVED AS TO FORM:
CARMEN VASQUEZ, City Attorney
Docusign Envelope ID: 48643680-ECF8-88F5-80C3-42ACCB05C562
RESOLUTION 6739 EXHIBIT A
CALCULATION OF THE GANN LIMIT FOR THE CITY OF GARDENA FOR FISCAL YEAR 2026-2027 IN ACCORDANCE WITH PROPOSITION III AND ARTICLE XIII (B)
EXECUTIVE SUMMARY: In November 1979, the voters of California approved Proposition 4, commonly known as the Gann Initiative. This proposition created Article XIII B of the State Constitution placing limits on the amount of revenue that can be appropriated by all government entities in any fiscal year. The legislation mandates all governing bodies including the City of Gardena to annually establish the Appropriations Limit.
FISCAL IMPACT: There is no impact to the City of Gardena budget. The fiscal year 2026- 2027 Appropriations Limit is $162,192,853, and will exceed the estimated General Fund spending plan of $89,812,078, in an amount of $72,380,775.
Amount & Calculation Source
A. Appropriations Limit Fiscal Year 2025-2026 $153,171,077 Prior Fiscal Year B. Calculation Factors:
1) Population increase factor - 0.90% 0.90 + 100
(City of Gardena) 100
4.95 + 100
100
C. Calculated Factor for Fiscal Year 2026-2027 1.0090 x 1.0495 = 1.0589 B(1) x B(2) D. Appropriations Limit Fiscal Year 2026-2027 $153,171,077 x 1.0589 = $162,192,853 A x C E. Annual Adjustment Increase: $9,021,776 D - A
2) Per Capita Cost of Living Change - 4.95% = 1.0495 State Department of Finance
CITY OF GARDENA
Appropriations Limit Schedule
For the Fiscal Year Ending June 30, 2027
= 1.0090 State Department of Finance
FY 2026-2027 Appropriations Limit $162,192,853
FY 2026-2027 Adopted Budget Subject to Limit (*) 89,812,078 Remaining Appropriation Capacity (Deficit) $72,380,775
Available Capacity as a Percentage of Appropriation Limit 44.6264% (*) Actual Appropriations Subject to Limit
Fund # 010 - General Fund FY 2026-2027 Adopted Budget: $89,812,078
CITY OF GARDENA
Calculation on FY 2026-2027 Budget
Against
FY 2026-2027 Appropriations Limit
Docusign Envelope ID: 48643680-ECF8-88F5-80C3-42ACCB05C562 City of Gardena
Gardena City Council
Meeting
AGENDA REPORT
SUMMARY
Agenda Item No. 13C.
Section: DEPARTMENTAL
ITEMS - ADMINISTRATIVE
SERVICES
Meeting Date: June 23,
2026
TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE: RESOLUTION NO. 6740, Acknowledging the Receipt and Filing of the Annual Statement of Investment Policy for the Fiscal Year 2026-2027
COUNCIL ACTION REQUIRED:
Staff Recommendation: Adopt Resolution No. 6740
RECOMMENDATION AND STAFF SUMMARY:
Staff requests that the City Council adopt Resolution No. 6740 approving the City's Investment Policy for Fiscal Year 2026-2027.
City staff completed a review of its Investment Policy to ensure compliance with State and Federal statutes, minimizing risk, and maximizing interest.
The purpose of the Investment Policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City objectives of safety, liquidity, and return on investment through a diversified investment portfolio. The policy also serves to organize and formalize the City's investment related activities. The City's policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurer's Association (CMTA), California Debt and Investment Advisory Commission (CDIAC), the Association of Public Treasurers (APTA), and Chandler Asset Management, Inc.
FISCAL IMPACT/COST:
N/A
APPROVED:
___________________________
Clint Osorio, City Manager
Attachments
Reso. 6740 Investment Policy 2026-2027 with Exhibit A.pdf 1 RESOLUTION NO. 6740
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GARDENA, CALIFORNIA, ACKNOWLEDG ING THE
RECEIPT AND FILING OF THE ANNUAL STATEMENT OF
INVESTMENT POLICY FOR THE FISCAL YEAR 2026-2027
WHEREAS, the Governor of the State of California signed legislation into law effective January 1, 1996 (SB564); and
WHEREAS, California Government Code Section 53646(a) (2) requires that local governments annually review and consider changes to their Statement of Investment Policy; and
WHEREAS, the Statement of Investment Policy is intended to outline the policies for maximizing the efficiency of the City’s Cash Management System and for prudent investment of the City’s funds, and to provide guidelines for suitable investments; and
WHEREAS, the City Council of the City of Gardena has reviewed and does hereby approve the new Statement of Investment Policy for the City of Gardena, attached hereto
as Exhibit "A" and made a part hereof.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GARDENA , CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE, AS FOLLOWS:
SECTION 1. That the City Council of the City of Gardena hereby approves the new Statement of Investment Policy for the City of Gardena (Exhibit A).
SECTION 2. That the Chief Fiscal Officer of the City of Gardena declares the annual Statement of Investment Policy for fiscal year 2026- 2027 to be as outlined in the City of Gardena’s Investment Policy.
SECTION 3. An annual statement of investment policy for the City of Gardena has been filed by the Chief Fiscal Officer for fiscal year 2026-2027 in compliance with Section 53646(A) (2) of the Government Code of the State of California.
SECTION 4. That this Resolution shall be effective immediately upon adoption by the City Council.
BE IT FURTHER RESOLVED that the City Clerk shall certify to the passage and adoption of this Resolution; shall cause the same to be entered among the original Resolutions of said City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the meeting at which the same is passed and adopted.
Passed, approved, and adopted this 23rd day of June, 2026.
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 RESOLUTION NO. 6740
2 TASHA CERDA, Mayor
ATTEST:
MINA SEMENZA, City Clerk
APPROVED AS TO FORM:
CARMEN VASQUEZ, City Attorney
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23
CITY OF GARDENA
INVESTMENT POLICY
JULY 2026
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23
CITY OF GARDENA
INVESTMENT POLICY
CONTENTS
I. INTRODUCTION .................................................................................................................. 2 II. SCOPE................................................................................................................................ 2 III. PRUDENCE ......................................................................................................................... 2 IV. OBJECTIVES ....................................................................................................................... 3 V. DELEGATION OF AUTHORITY ............................................................................................ 3 VI. ETHICS AND CONFLICTS OF INTEREST ............................................................................... 4 VII. INTERNAL CONTROLS ........................................................................................................ 4 VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS ............ 5 IX. AUTHORIZED INVESTMENTS .............................................................................................. 6 X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES ..................................................... 11 XI. INVESTMENT POOLS/MUTUAL FUNDS ............................................................................. 11 XII. COLLATERALIZATION ...................................................................................................... 11 XIII. DELIVERY, SAFEKEEPING AND CUSTODY ........................................................................ 12 XIV. MAXIMUM MATURITY .................................................................................................... 12 XV. RISK MANAGEMENT AND DIVERSIFICATION ................................................................... 12 XVI. REVIEW OF INVESTMENT PORTFOLIO .............................................................................. 14 XVII. PERFORMANCE EVALUATION .......................................................................................... 14 XVIII. REPORTING...................................................................................................................... 14 XIX. REVIEW OF INVESTMENT POLICY .................................................................................... 14 GLOSSARY OF INVESTMENT TERMS ............................................................................................... 15 Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 2 I. INTRODUCTION
The purpose of this investment policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Gardena objectives of safety, liquidity and return on investment through a diversified investment portfolio. This policy also serves to organize and formalize the City of Gardena’s investment -related activities, while complying with all applicable statu tes governing the investment of public funds. This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association ( GFOA), California Municipal Treasurers Association ( CMTA), California Debt and Investment Advisory Commission ( CDIAC) and the Association of Public Treasurers (APT).
This investment policy was endorsed and adopted by the City of Gardena’s City Council and is effective as of the 1st day of July, 2026, and replaces any previous versions.
II. S
COPE
This policy covers all funds and investment activities under the direct authority of the City of Gardena, as set forth in the State Government Code, S ections 53600 et seq., with the following exceptions:
• Proceeds of debt issuance shall be invested in accordance with the City of Gardena’s general investment philosophy as set forth in this policy; however, such proceeds are to be invested pursuant to the permitted investment provisions of their specific bond indentures.
• CalPERS, OPEB trusts, and the investment of employees’ deferred compensation funds invested pursuant to Government Code Section 53609.
• Any other funds specifically exempted by the City Council.
P
OOLING OF FUNDS
Except for cash in certain restricted and special funds, the City of Gardena will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.
III. P
RUDENCE
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City of Gardena are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 3 chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
The City Manager and other authorized persons responsible for managing City of Gardena funds acting in accordance with this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes provided that the City Manager or other authorized persons acted in good faith.
Deviations from expectations of a security’s credit or market risk should be reported to the governing body in a timely fashion and appropriate action should be taken to control adverse developments.
IV. O
BJECTIVES
The City of Gardena’s overall investment program shall be designed and managed with a degree of professionalism worthy of the public trust. The overriding objectives of the program, in priority order, are to preserve principal, provide sufficient liquidity, and manage investment risks, while seeking a market-rate of return.
• S
AFETY. Safety of principal is the foremost objective of the investment program.
Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City of Gardena will diversify its investments by investing funds among a variety of securities with independent returns.
• L
IQUIDITY. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
• RETURN ON INVESTMENTS. The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints f or safety and liquidity needs.
V. D
ELEGATION OF AUTHORITY
Authority to manage the City of Gardena’s investment program is derived from California Government Code, Sections 41006 and 53600 et seq.
The City Council is responsible for the management of the City of Gardena ’s funds, including the administration of this investment policy. Management responsibility for the Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 4 cash management of the City of Gardena’s funds is hereby delegated to the City Manager or other authorized persons.
The City Manager, or his/her designee, will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate officials and employees. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Manager, or his/her designee.
The City of Gardena may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City of Gardena ’s investment portfolio in a manner consistent with the City of Gardena’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.
The City of Gardena's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City of Gardena recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City of Gardena.
VI. E
THICS AND CONFLICTS OF INTEREST
All participants in the investment process shall act as custodians of the public trust.
Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. Thus, employees and officials involved in the investment process shall refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.
Employees and investment officials shall disclose to the City Manager, or his/her designee, any material interests in financial institutions with which they conduct business , and they shall further disclose any large personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking any personal investment transactions with the same individual with whom business is conducted on behalf of the Agency.
VII. I
NTERNAL CONTROLS
The City Manager, or his/her designee, is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 5 Periodically, as deemed appropriate by the City of Gardena and/or the City Council , an independent analysis by an external auditor shall be conducted to review internal controls, account activity and compliance with policies and procedures.
VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS
To the extent practicable, the City Manager, or his/her designee, shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City of Gardena’s City Manager, or his/her designee, will determine which financial institutions are authorized to provide investment services to the City of Gardena. It shall be the City of Gardena’s policy to purchase securities only from authorized institutions and firms.
The City Manager, or his/her designee, shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City of Gardena. Due inquiry shall determine whether such a uthorized broker/dealers, and the individuals covering the City of Gardena are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all of their financial obligations.
These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).
In accordance with Section 53601.5, i nstitutions eligible to transact investment business with the City of Gardena include:
• Institutions licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, with proof of FINRA certifications
• Primary government dealers as designated by the Federal Reserve Bank and non- primary government dealers.
• Nationally or state-chartered banks.
• Savings association of federal association (as defined in Section 5102 of the Financial Code).
• The Federal Reserve Bank.
• Direct issuers of securities eligible for purchase.
Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City of Gardena , except where the City of Gardena utilizes an external investment adviser in which case the Agency may rely on the adviser for selection.
All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the City Manager, or his/her designee, with audited financials and a statement certifying that the institution has reviewed the California Government Code , Section 53600 et seq . and Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 6 the City of Gardena ’s investment policy . The City Manager , or his/her designee, will conduct an annual review of the financial condition and registrations of such qualified bidders.
Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.
Selection of broker/dealers used by an external investment adviser retained by the City of Gardena will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitiv e offerings will be required as all dealers in the selling group offer those securities at the same original issue price.
IX. A
UTHORIZED INVESTMENTS
The City of Gardena’s investments are governed by California Government Code, Sections 53600 et seq. Within the investments permitted by the Code, the City of Gardena seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits listed in this section app ly at the time the security is purchased.
Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity, and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.
An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and issuer to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers.
1. M
UNICIPAL SECURITIES include obligations of the City of Gardena , the State of California and any local agency within the State of California, provided that:
• The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). • No more than 5% of the total portfolio may be invested in any single issuer. • No more than 30% of the total portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.
2. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS ) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 7 or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
• The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). • No more than 5% of the total portfolio may be invested in any single issuer. • No more than 30% of the total portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.
3. U.S.
TREASURIES and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City of Gardena may invest in U.S.
Treasuries, provided that:
• The maximum maturity is five (5) years.
4. F
EDERAL AGENCIES or United States Government -Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government -sponsored enterprises. There are no limits on the dollar amount or percentage that the City of Gardena may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), provided that:
• No more than 25% of the total portfolio may be invested in any single Agency/GSE issuer.
• The maximum maturity does not exceed five (5) years.
• The maximum percent of agency callable securities in the total portfolio will be 20%.
5. B
ANKER’S ACCEPTANCES, provided that:
• They are issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO ; or long- term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 40% of the total portfolio may be invested in Banker’s Acceptances. • No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed 180 days.
6. COMMERCIAL PAPER, provided that:
• The issuer is a corporation organized and operating in the United States with assets in excess of $500 million.
• The securities are rated “A-1” or its equivalent or better by at least one NRSRO. • They are issued by corporations which have long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. • No more than 25% of the total portfolio may be invested in Commercial Paper. • No more than 5% of the total portfolio may be invested in any single issuer.
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 8 • The maximum maturity does not exceed 397 days.
7. NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDS), issued by a nationally or state - chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state -licensed branch of a foreign bank, provided that:
• The amount of the NCD insured up to the FDIC limit does not require any credit ratings.
• Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A -1” or its equivalent or better by at least one NRSRO; or long- term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS).
• No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.
8. F
EDERALLY INSURED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
• The amount per institution is limited to the maximum covered under federal insurance.
• No more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.
9. C
OLLATERALIZED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
• No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.
10. P
LACEMENT DEPOSIT SERVICE provided that:
• No more than 30% of the total portfolio may be invested in a combination of Certificates of Deposit, including CDARS.
• The full amount of each deposit along with accrued interest must at all times be insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA)
• Under a provision sunsetting on January 1, 2031, no more than 50% of the portfolio may be invested in deposits through a placement service, including Certificates of Deposit, if the Agency is a city, district or local agency that does not pool money with other local agencies.
• The maximum maturity does not exceed five (5) years.
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 9 11. COLLATERALIZED BANK DEPOSITS. City of Gardena ’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits on the dollar amount or percentage that the City of Gardena may invest in collateralized bank deposits.
12. LOCAL GOVERNMENT INVESTMENT POOLS (LGIP)
• STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), provided that:
o The City of Gardena may invest up to the maximum amount permitted by LAIF. o LAIF’s investments in instruments prohibited by or not specified in the City of Gardena’s policy do not exclude the investment in LAIF itself from the City of Gardena’s list of allowable investments, provided LAIF’s reports allow the Treasurer to adequately judge the risk inherent in LAIF’s portfolio.
• S
HARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (JPA), provided that:
o The JPA is organized pursuant to California Government Code Section 6509.7 and invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive.
o Each share shall represent an equal proportional interest in the underlying pool of securities owned by the JPA.
o The JPA has retained an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years’ experience investing in instruments authorized by Section 53601, subdivisions (a) to (q).
• OTHER LOCAL GOVERNMENT INVESTMENT POOLS (LGIP)
o Other LGIPs permitted by the agency , such as Los Angeles County Pooled Investment Fund (LACPIF) , as defined by California Government Code Section 27000.3.
13. C
ORPORATE MEDIUM TERM NOTES (MTNS), provided that:
• The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
• The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in MTNs. • No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.
14. A
SSET-BACKED, MORTGAGE-BACKED, MORTGAGE PASS-THROUGH SECURITIES, AND COLLATERALIZED MORTGAGE OBLIGATIONS, provided that:
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 10 • The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
• No more than 20% of the total portfolio may be invested in these securities. • No more than 5% of the total portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer. There is no issuer limitation on any Mortgage security where the issuer is the US Treasury or a Federal Agency/GSE. • The maximum legal final maturity does not exceed five (5) years.
15. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
• MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.
3. No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
• M
ONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
1. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
3. No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.
• No more than 20% of the total portfolio may be invested in these securities.
16. S
UPRANATIONALS, provided that:
• Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank.
• The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 11 • No more than 30% of the total portfolio may be invested in these securities. • No more than 10% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.
X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
• State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. • In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. • No surplus city funds shall be invested in any repurchase agreements, reverse repurchase agreements, derivatives or noncollateralized corporate notes • Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2031, securities backed by the U.S. Government that could result in a zero- or negative -interest accrual if held to maturity are permitted.
• Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
• Purchasing or selling securities on margin is prohibited. • The purchase of foreign currency denominated securities is prohibited. • The purchase of a security with a forward settlement date exceeding 45 days from the time of investment is prohibited.
XI. I
NVESTMENT POOLS/MUTUAL FUNDS
The City of Gardena shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Treasurer shall develop a questionnaire which will answer the following general questions:
1. A description of eligible investment securities, and a written statement of investment policy and objectives.
2. A description of interest calculations and how it is distributed, and how gains and losses are treated.
3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.
4. A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
5. A schedule for receiving statements and portfolio listings.
6. Are reserves, retained earnings, etc. utilized by the pool/fund?
7. A fee schedule, and when and how is it assessed.
8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? XII. C
OLLATERALIZATION
CERTIFICATES OF DEPOSIT (CDS). The City of Gardena shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 12 depository approved by the State Banking Department to secure any uninsured portion of a Non -Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.
C
OLLATERALIZATION OF BANK DEPOSITS. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City of Gardena shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.
XIII. D
ELIVERY, SAFEKEEPING AND CUSTODY
DELIVERY-VERSUS-PAYMENT (DVP). All investment transactions shall be conducted on a delivery-versus-payment basis.
SAFEKEEPING AND CUSTODY. To prot ect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City of Gardena’s portfolio shall be held in safekeeping in the City of Gardena’s name by a third party custodian, acting as agent for the City of Gardena under the terms of a custody agreement executed by the bank and the City of Gardena . All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received by the City of Gardena from the custodian listing all securities held in safekeeping with current market data and other information.
The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) money mutual funds, since the purchased securities are not deliverable.
XIV. M
AXIMUM MATURITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.
The City of Gardena will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment.
XV. R
ISK MANAGEMENT AND DIVERSIFICATION
MITIGATING CREDIT RISK IN THE PORTFOLIO
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City of Gardena will mitigate credit risk by adopting the following strategies:
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 13 • The diversification requirements included in the “Authorized Investments” s ection of this policy are designed to mitigate credit risk in the portfolio.
• No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.
• The City of Gardena may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City of Gardena’s risk preferences.
• If securities owned by the City of Gardena are downgraded by a n NRSRO to a level below the quality required by this investment policy, it will be the City of Gardena’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.
o If a security is downgraded, the City Manager, or his/her designee, will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.
o If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.
M
ITIGATING MARKET RISK IN THE PORTFOLIO
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City of Gardena recognizes that, over time, longer -term portfolios have the potential to achieve higher returns. On the other hand, longer -term portfolios have higher volatility of return. The City of Gardena will mitigate market risk by providing adequate liquidity for short -term cash needs, and by making longer -term investments only with funds that are not needed for current cash flow purposes.
The City of Gardena further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City of Gardena, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
• The City of Gardena will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.
• The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.
• The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City of Gardena based on the City of Gardena’s investment objectives, constraints and risk tolerances.
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 14 XVI
. REVIEW OF INVESTMENT PORTFOLIO
T
he City Manager, or his/her designee, shall periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council.
XVII. P
ERFORMANCE EVALUATION
T
he investment portfolio shall be designed to attain a market -average rate of return throughout budgetary and economic cycles, taking into account the City of Gardena’s risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.
The City Manager, or his/her designee, shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark (s). The City Manager, or his/her designee, shall select an appropriate, readily available index to use as a market benchmark.
Benchmarks may change over time based on changes in market conditions or cash flow requirements.
XVIII. R
EPORTING
M
onthly transaction reports will be submitted by the City Manager, or his/her designee, to the City Council within 30 days of the end of the reporting period in accordance with California Government Code Section 53607.
XIX. REVIEW OF INVESTMENT POLICY
T
he investment policy will be reviewed and adopted at least annually within 120 days of the end of the fiscal year , to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.
A
ny recommended modifications or amendments shall be presented by Staff to the City Council for their consideration and adoption.
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23
15 GLOSSARY OF INVESTMENT TERMS
AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:
FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.
FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.
FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.
FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass-through securities.
GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.
PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.
ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.
AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.
BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions.
It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.
BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.
BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from their own position.
CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity.
The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current securities and reissue them at a lower rate of interest.
CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP). CAMP is a Joint Powers Authority which was established to provide local California governments with investment management services. The CAMP Pool investment option offers daily liquidity and underscores safety of principal and liquidity as the primary objectives.
C
ERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.
COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.
COLLATERALIZED BANK DEPOSIT. A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23
16 COLLATERALIZED TIME DEPOSIT. Time deposits that are collateralized at least 100% (principal plus interest to maturity). These instruments are collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.
COMMERCIAL PAPER. The short-term unsecured debt of corporations.
COUPON. The rate of return at which interest is paid on a bond.
CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.
DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position.
DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.
DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.
D
ISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T -bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.
DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.
DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.
FEDERALLY INSURED TIME DEPOSIT. A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD). These deposits are limited to funds insured in accordance with FDIC insurance deposit limits.
FIDUCIARY. A person or organization that acts on behalf of another person(s) or organization that puts their clients’ interest ahead of their own as they are bound both legally and ethically to act in the other’s best interests.
INVESTMENT TRUST OF CALIFORNIA (CALTRUST). CalTrust is a Joint Powers Authority formed by public agencies in California for the purposes of pooling and investing local public agency funds.
The accounts seek to attain a high -level of current income that is consistent with the preservation of principal in compliance with restrictions and limits placed by CA statue.
L
EVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.
LIQUIDITY. The speed and ease with which an asset can be converted to cash.
LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.
LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.
LOS ANGELES COUNTY POOLED INVESTMENT FUND (LACPIF). LACPIF is a Joint Powers Authority maintained by the Los Angeles County Treasurer and Tax Collector created for the benefit of local agencies.
MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23
17 payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole." MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.
MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.
MARKET VALUE. The price at which a security can be traded.
MATURITY. The final date upon which the principal of a security becomes due and payable . The investment’s term or remaining maturity is measured from the settlement date to final maturity.
MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market oppor tunities or to investor preferences.
MODIFIED DURATION. The percent change in price for a 100- basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.
MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.
MONEY MARKET MUTUAL FUND. A mutual fund that invests exclusively in short -term securities.
Examples of investments in money market funds are certificates of deposit and U.S. Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.
MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.
MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.
MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).
A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.
N
EGOTIABLE CERTIFICATE OF DEPOSIT (CD). A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state -licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market.
PAYDOWN. A reduction in the principal amount owed on a bond, loan, or other debt.
PLACEMENT SERVICE DEPOSITS. A private service that allows local agencies to invest in FDIC -insured deposits with one or more banks, savings and loans, and credit unions located in the United States.
IntraFi (formerly known as CDARS) is an example of an entity that provides this service.
PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U .S. Government securities market.
PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries.
In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.”
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23
18 REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.
SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.
SECURITIES AND EXCHANGE COMMISSION (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. It was created by Congr ess in 1934 as the first federal regulator of securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.
S
ECURITIES AND EXCHANGE COMMISSION SEC) RULE 15C3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3- 1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.
STRUCTURED NOTE. Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations, which have imbedded options (e.g., call features, step- up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.
SUPRANATIONAL. A Supranational is a multi -national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.
TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.
U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.
T
REASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T- bills at regular weekly auctions. It also issues “cash management” b ills as needed to smooth out cash flows.
TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.
TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.
YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.
Docusign Envelope ID: B3DD3780-B775-89F9-82EB-F2780CE3DD23 City of Gardena
Gardena City Council
Meeting
AGENDA REPORT
SUMMARY
Agenda Item No. 13D.
Section: DEPARTMENTAL
ITEMS - ADMINISTRATIVE
SERVICES
Meeting Date: June 23,
2026
TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE: Approval of Blanket Purchase Orders for Fiscal Year 2026-2027 COUNCIL ACTION REQUIRED:
Staff Recommendation: Approve Blanket Purchase Orders for Fiscal Year 2026-2027
RECOMMENDATION AND STAFF SUMMARY:
A blanket purchase order authorizes the City to buy goods and services with predetermined terms or conditions.
These vendors either have individual agreements, are piggybacking on government agency contracts, sole source vendors, or provide vital and timely services or goods. Their product availability and cost-competitiveness provides assurance that the City is receiving favorable pricing and the vendor has ample supply of goods or products. The blanket purchase order is limited by a dollar amount, as approved by the City Council, and authorizes the Purchasing Officer to issue releases of goods or services until the dollar amount of the blanket purchase order is reached. These amounts being requested are included and within the first fiscal year of the Proposed Biennial Budget for Fiscal Year 2026-2027. Staff is requesting a fifteen percent (15%) contingency to account for any unforeseen expenditures that may arise. Such expenditures would not be allowed unless agreed upon and approved in advance by City management.
Per the City's municipal code, Section 2.60.100, "Purchases greater than fifty thousand dollars shall be approved by the City Council." Therefore, as the estimated budgeted expenditures exceeds $50,000, it is requested that the City Council approve the Blanket Purchase Orders for Fiscal Year 2026-2027 as specified in Exhibit A.
FISCAL IMPACT/COST:
See attached Exhibit A; all estimated amounts are included and within the first fiscal year of the Proposed Biennial Budget for Fiscal Year 2026-2027.
APPROVED:
___________________________
Clint Osorio, City Manager
Attachments
Blanket PO Listing FY 26-27.pdf
VENDOR ESTIMATED
AMOUNTDESCRIPTION OF SERVICE FUNDING SOURCE DEPARTMENT
AT&T FirstNet 110,000$ Citywide Wireless Telecommunication General Fund Citywide BPR Consulting Group 1,300,000Building and Safety Services General Fund Community Development Charter Communications 100,000 Cable & Back-Up Internet Services General Fund Citywide City of Hawthorne 120,000Mark 43 (CAD/RMS) General Fund Police City of Torrance 172,000 Interoperability Network of the South Bay JPA Membership Assessment General Fund Non-Departmental
Data Gear, Inc. 200,000Video Policing Camera Maintenance General Fund Police Dooley's Enterprises, Inc 150,000Ammunition General Fund Police Empire Cleaning Supply 60,000 Custodial Supplies General Fund Recreation & Human Services
Enterprise FM Trust 275,000 Patrol & City Lease Fleet General Fund Citywide FM Thomas Air Conditioning Inc 87,392HVAC Preventative Maintenance & RepairGeneral Fund Public Works Jones Mayer 145,964 City Attorney Annual Retainer General Fund City Manager's Office Los Angeles County Department of Public
Works 175,000Required Industrial Waste Inspection ServicesGeneral Fund Public Works Los Angeles County Fire Department 11,715,630 Fire Protection Services General Fund Non-Departmental Los Angeles Superior Court 430,000 Parking Citation Fees General Fund Police Merrimac Petroleum 250,000 Fuel Supply General Fund Public Works Occupational Health Centers of California 100,000 Health Care Services with Concentra General Fund Administrative Services Palicon Group 110,000Investigative Services General Fund Police Phoenix Group Information System 200,000 Citation Billing Services General Fund Police Prudential Overall Supply 75,000Uniform, Towel & Miscellaneous Rental Services/Custodial Supplies General Fund Recreation/Public Works Race Communications 100,000 Fiber Internet Services General Fund Citywide Shige's Foreign Car Service Inc 175,000 Vehicle Repairs General Fund Citywide South Bay Regional Public Communications
Authority 2,665,852 Annual Assessment General Fund Non-Departmental spcaLA 311,800 Animal Control/Sheltering Services General Fund Community Development Tyler Technologies 60,770 Annual Eden Software Maintenance General Fund Administrative Services Wells Fargo Vendor Financial Services, LLC50,000 Copier Lease General Fund Citywide Western Collision Center, Inc. 125,000 Vehicle Repairs General Fund Police Total General Fund 19,264,408$
EXHIBIT A