CITY OF SOUTH GATE
SOUTH GATE CITY COUNCIL; SOUTH GATE HOUSING AUTHORITY;
SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SOUTH GATE; SOUTH GATE UTILITY AUTHORITY; AND SOUTH GATE PUBLIC FINANCE AUTHORITY
REGULAR MEETING MINUTES
TUESDAY, JULY 22, 2025
CALL TO ORDER The Regular meeting of the City Council, Housing Authority, Successor Agency, was called to order by Maria Davila, Mayor/Chairperson at 6:36 p.m.
INVOCATION Tina De La Rosa, Deputy Director of Parks & Recreation
PLEDGE OF
ALLEGIANCE Thurman Green, Risk Manager
ROLL CALL Yodit Glaze, City Clerk/Recording Secretary PRESENT Mayor/Chairperson Maria Davila, Vice Mayor/Vice Chairperson Joshua Barron, Council/Authority/Agency Member Gil Hurtado, Council/Authority/Agency Member Al Rios, City Treasurer Jose De La Paz, City Manager/Executive Director Rob Houston, City Attorney/ Authority Counsel Raul F. Salinas
Council Member Maria del Pilar Avalos requested that she be allowed to participate in the City Council Meeting remotely due to medical condition and consistent with AB 2449. The request was approved by motion of Council Member Hurtado and seconded by Mayor Davila.
ROLL CALL: Council Member Hurtado, yes; Council Member Rios, yes; Vice Mayor Barron, yes; Mayor Davila, yes.
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BUDGET ADMIN The City Council:
a. Received and filed presentations on the Proposed FY 2025-26 Budgets and 1-Year Capital Improvement Program ("CIP");
b. Adopted Resolution No. 2025-23-CC entitled A Joint Resolution of the City Council of the City of South Gate, South Gate Housing Authority and Successor Agency to the Community Development Commission of the City of South Gate, California, approving the FY 2025-26 Municipal Budget in the amount of $298,586,637, including all funds and departments, along with any additions or deletions the Legislative Bodies may enact; and
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CONT'D c. Adopted Resolution No. 2025-24-CC entitled Resolution of the City Council of the City of South Gate, California, establishing the FY 2025-26 Gann Appropriations Limit in the amount of $110,869,454.
City Manager Houston stated tonight's public hearing and presentation of the budget for the coming fiscal year. There was a presentation given at the first meeting in June which highlighted the core pieces of the budget, operations and accomplishments from last year.
City Manager Houston asked Mr. Frausto, Director of Administrative Services, to start the presentation.
Mr. Frausto presented the Fiscal Year 2025/26 Proposed Budget for adoption. Mr. Frausto deferred to a couple of department heads to speak about some of the growth and costs the city has experienced over the last several years.
Chief of Police Arakawa gave his presentation.
Steve Costley, Director of Parks & Recreation, gave his presentation.
Arturo Cervantes, Director of Public Works, gave his presentation.
Mr. Houston spoke on the options the city is facing, details on those options and a recommendation approach for this yeais budget.
Council Member Hurtado explained that freezing positions are also freezing services. He met with the directors and discussed their budgets.
RECESS Prior to the conclusion of item 1, the City Council recessed at 7:53 p.m., and reconvened at 7:59 p.m., with all Members of Council present.
Mayor Davila asked if anyone in the audience wished to speak on this item.
Sylvia Lopez, San Luis Ave., is representing her local swim team, South Gate Aqua Coalition. Her team practices at the Patricia Mitchell Swim Stadium and is concerned that the swimming stadium will be closed from November to January.
Jayla Bonilla, 3220 Liberty Ave., is a member of the South Gate Aqua Coalition and is concerned that the swimming stadium will be closed from November to January.
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CONT'D Yolanda Macias has been part of the aquatics since 1971 and does not mind paying a few dollars more so the swimming stadium can remain open.
Freda, nine-years-old, was diagnosed with ADHD. She has a lot of energy and swimming has kept her focused.
Pedro Espejo is a member of the South Gate Aqua Coalition and is concerned that the swimming stadium will be closed for three months.
Liz Ruiz, Parks Commissioner, listening to the swim participants voicing their concern warms her heart. She is also concerned about the budget cuts and supports the second proposal that does not include the closure of the pool. She thinks the Utility Users Tax is something the residents should consider as a city. She also believes that there has not been enough outreach for these meetings.
Francisco Gallegos, Otis st., is concerned about public safety and the cuts that are going to possibly happen.
Erika Diaz, parent of a South Gate swimmer. She is expressing her strong support for keeping the South Gate pool open.
Gavin Padilla is present supporting his swimming team in hopes of keeping the swimming pool open in December, January, and February.
Karen is expressing her support for keeping the South Gate pool open. Her son is autistic, and swimming has helped him to deal with life.
Mariah Tavaris is new to the South Gate team. She is a JAG and SAG qualifier and is expressing her support for keeping the South Gate pool open.
Jr Bonilla has been swimming for the South Gate Aqua Coalition for four years. He is expressing his support for keeping the South Gate pool open.
Jirnmy Ozaeta, South Gate resident, is requesting that the City Council lead with transparency and respect for our civil responsibilities. For the past several Council Meetings, several questions have been posed by city residents regarding the city budget. These questions have not been answered by the City Council or staff.
Nelson Hermosillo, 1035 Dorothy Ave., commended Mr. Houston for the presentation. He recommends option two. He asked if the city becomes insolvent, what happens to the retirees and their pensions. He has analyzed
REGULAR COUNCIL, HOUSING AUTHORITY & SUCCESSOR AGENCY MEETING MINUTES OF JULY 22, 2025
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BUDGET ADMIN
CONT'D the budget for the State of California, the County of Los Angeles, and the City of South Gate's. The state and county are spending money unwisely.
He has called assemblymen, senators, and county supervisors without any luck.
Edgar Pelayo, South Gate resident, informed the South Gate Aquatic Center that every second Thursday of the month, there's a Parks & Rec Commission meeting. He doesn't think asking South Gate residents to tax themselves will be a solution to the situation the city is in. He mentioned that this city government is financed by the residents. Changes need to be made.
Juan, South Gate resident, after seeing the presentation, believes changes are necessary.
Having no one else come forward, Mayor Davila closed the audience portion.
Mayor Davila thanked the South Gate Aquatic team for attending tonight's meeting and speaking on the swimming pool closure. She doesn't agree with option one, option two is more helpful.
Mayor Davila asked why parks are asking to close on Fridays.
Mr. Costley stated Fridays are the least used day at the pool. Lessons are held on Monday through Thursday on a regular basis. The parks recently within the last couple of years reopened Fridays.
Council Member Hurtado stated that it is easy to critique and not give any solutions. He mentioned that the employees are not highly paid. This is a hard blue color, hardworking community. We have had structural deficits throughout the year. The streetlight and landscaping fund was mentioned during the presentation which everyone in the community benefits from.
Council Member Hurtado thanked all the young people present tonight who spoke. He has a grandson that's also on the spectrum and he's into music. If it wasn't for the music his grandson wouldn't be as advanced as he is. He appreciates the parents who came here with her son. He understands the seniors need the swimming pool for their therapy.
Council Member Hurtado is not going to support closing the swimming pool, removing crossing guards, and freezing programs long term. The city is going to tell voters, here's your choice, you can either support this tax that every city around us has. City employees are leaving for better paid jobs. Council Member Hurtado was out there with the teachers at
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1 BUDGET AJ)MnV
CONT'D UTLA when they were marching for better salaries. He out there with the Kaiser nurses and first responders for the same thing at St. Francis.
Council Member Rios thanked the people for attending tonight's meeting.
He asked Mr. Costley the reason behind closing the pool on Fridays if the budget hasn't been approved.
Mr. Costley stated as we move forward in this program and we set goals of how we were going to set the budget, the recommendation from staff was for option number two. Staff originally expected the budget to be approved at the end of June and not in July, we could not meet those budget numbers if we did not close the pool.
Council Member Rios thanked Mr. Costley for clarifying. He responded to some of his colleagues' comments regarding his Parks & Recreation Commissioner and Planning Commissioner who happened to be very involved. This is a democracy where people question, especially the city budget.
Council Member Rios asked Mr. Costley if the city's water is free or do the departments also pay for the water.
Mr. Costley will have Mr. Frausto or Mr. Cervantes answer the question.
Mr. Cervantes stated the city has its own water district. The City of South Gate should be paying into the water enterprise. He doesn't know when it was shifted because the city is using water for the city's pool and medians.
Mr. Houston stated for water services, water staffing, and water costs are not funded out of the general fund. Water is considered a special :[und, and it pays for itself because the rates keep getting adjusted as costs go up.
Council Member Rios stated that questions asked by the public are answered but some questions have not been answered, for example the UUT survey that was conducted.
Council MemberAvalos stated that she will not burden the city's deficit solely on the residents. She is suggesting the city conduct a full budget audit with the goal of identifying inefficiencies, outdated contracts, unused assets, and overlapping services. Evaluating consultant contracts, travel expenses, and administrative overhead. Freezing non-essential hiring and overtime. Implementing a temporary hiring freeze for non-critical positions. Review overtime usage in all departments. Reassigning staff where possible before adding new roles. Renegotiating vendor contracts and service agreements. Streamlining all the departments, combining
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CONT'D departments that overlap responsibilities. Cross training the employees to increase flexibility and reduce overtime dependency.
Council Member Avalos also recommends launching a Community Budget Advisory Task Force, involving the residents in budget prioritization, promoting transparency, a public buying when difficult choices need to be made because that is coming in the next fiscal year.
Introducing a target fee adjustment, revisiting outdated or underpriced user fees such as in the city's rental facilities, permits, or special programs, and making sure these increases are minimal and tied to the service delivery of our residents.
Vice Mayor Barron thanked the South Gate Aquatics Team for attending tonight's meeting. He knows the impact sports have on one's life. He understands no one wants to pay more taxes. He mentioned the street and landscaping funds have not been raised in 30 years. How can residents help.
Council Member Rios stated that the City Council created an Ad Hoc Committee to see the city's budget. The Ad Hock Committee received information, and they also asked for certain information that was not provided.
Jose De La Paz, City Treasurer, stated that after reviewing the proposed budget, he commends staff for the work done to control expenses under a very challenging financial situation. Meaningful efforts have been made to reduce costs, but we all know prices continue to rise whether it's insurance, food, school supplies and there's only so much any individual could do to cut before the impact can be felt. The city is facing a revenue challenge. Discussion will take time, and the community should be involved in shaping that future. He suggested traffic mitigation, curb usage fee, vacant property or empty storefront tax. He recommends that the City Council adopt the proposed FY 2025/26 budget with option two cutting
2.2 million and leaving the pool intact with its original operating hours. He is requesting that city staff conduct a quarterly update to be provided to City Council and residents on all cost-saving measures that are being approved today and all proposed cuts.
Mr. Houston stated good discussion, good community input, tough road ahead. It will take the entire community, staff and council. Option two could reduce touch decisions and give us time over this next year. He commended the finance department for their hard work.
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BUDGET ADMIN
CONT'D Mr. Houston stated he is available to go through the budget in detail with members of the community, set up a workshop or a cornrnunity meeting.
He will have Chief Arakawa speak on the horses.
Chief Arakawa explained that there is no line item on the budget for horses because the Police Offices Association had an idea of having a mounted patrol unit with the horses and trailers owned by the police officers, housed by the police officers at their residences, insurance and everything else associated with that program paid by the police officers.
No taxpayers' dollars are being used for the mounted unit. Two horses wouldn't be the cause of a deficit to this degree.
Mayor Davila inquired about the Azalea Festival and lack of participation.
She asked if the Tweedy Mile runs the car show what does the city provides.
Mr. Costley stated the city provides some police services, show mobile staffing for the event and overtime fees across the board. Use of the golf course the whole day. Staff meet with the Tweedy Mile on a regular basis to get the event moving forward.
Mayor Davila is suggesting that Tweedy Mile pay for their event.
Mr. Costley informed City Council that the Tweedy Mile do not make a significant amount of profit to pay for their event.
Mayor Davila believes the city can do without the carnival during the fourth of July event.
Mr. Costley informed City Council that the carnival is the moneymaker for both Azalea and fourth of July events. For the Azalea festival we bring in about $15,000 to $18,000 a year. For the fourth of July we bring in about $18,000.
Vice Mayor Barron questioned the expenses from both events.
Mr. Frausto stated these costs are our best estimates. The Public Works and Police Departments do contribute to the setup and success of these events that are not factored in here. He does not have a tangible dollar, that's why it was not included.
Mayor Davila questioned the $60,000 for one day on the swimming stadium.
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BUDGET ADMIN
CONT'D Mr. Costley stated that it is one day per week. So, 52 weeks a year. A swimming stadium takes significant staffing to match crowds.
Mayor Davila asked if other 'tunding could be used for the swimming stadium.
Mr. Costley stated that there might be funding, but it is not in the Parks and Recreation Department.
Mr. Houston stated City Council can provide guidance and staff will find a solution.
Council Member Rios inquired about UWS.
Mr. Houston stated the city has a UWS fiind of $120,000 per year as part of the trash contract where they contribute to community events. However, that fund is being utilized for Winter Wonderland, and other evems as well.
Council Member Hurtado recommends going with option two. Don't touch the swimming stadium, golf course, or free play. Eliminate the other two but bring them back later to see maybe we can find a way to fund those.
Council Member Hurtado has met with city staff and people in the community to get a sense of what people want. People want more services, not less.
Council Member Hurtado motioned for the second option, keeping the swimming stadium, golf course, and free play intact, and return by November with some ideas for the other two options and seconded by Vice Mayor Barron.
Council MemberAvalos needs clarification that at the first presentation Mr. Downs indicated that the budget already included salary increases for our employees.
Mr. Houston stated the cola, which has typically been offered over the years for cost-of-living increase, which equates to 3%, has been anticipated and put in the budget as a forecasted cost just like costs for potential projects or even staffing levels. However, there is no connection with the funding that put in that budget to actual guarantees to spend it.
So, there's a separate process that runs parallel to the budget that is labor negotiations. That number will be based on negotiations with the unions and city council.
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BUDGET ADMm
CONT'D Council Member Rios is asking for an amendment on the motion to include quarterly. He would like the Ad Hoc Committee to continue meeting with staff to discuss budget.
Mayor Davila agrees that staff will provide a quarterly budget report for the City Council and Ad Hoc Committee and City Treasurer will continue meeting with staff.
Vice Mayor Barron stated that there is a misconception that City Council only hears information if an Ad Hoc Committee was created. If he has any questions, he contacts the finance director or any other director and with city manager too.
ROLL CALL: Council/Authority/Agency Member Hurtado, yes; Council/Authority/Agency Member Rios, yes; Vice Mayor/Vice Chairperson Barron, yes; Mayor/Chairperson Davila, yes; Council/Authority/Agency Member Avalos, no.
RECESS The City Council recessed at 9:54 p.m., and reconvened at 9:59 p.m., with all Members of Council present.
COMMENTS FROM THE
AUDIENCE - NON-AGENDA
ITEMS Nelson Hermosillo, 10135 Dorothy Ave., thanked Council Member Rios for his comments on the budget. He couldn't attend the previous meeting regarding CDBG funds. He praises the public works department. He stated that although it was a great gesture to use CDBG funds to supply food to the immigrant community, the city cannot afford this. He is requesting that the streets and sidewalks be fixed. He also mentioned that if the Trump Administration is aware, the federal funds will be taken from the city.
Mr. Hermosillo agrees the city employees are underpaid and that's why they are leaving for other cities. He is suggesting reducing the department heads' salaries.
Mayor Davila stated the city is aware federal funds cannot be used to supply food to the immigrant community.
Francisco Gallegos, Otis Street, spoke on the issue of Fireworks.
Liz Ruiz, Kauffman Ave., cornrnended the city for their work reminding the people that we share the streets with bike riders. She asked about the hazard mitigation plan. And who to call regarding the removal of certain trees.
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EMAILS Brenda Rojas, Soutli Gate resident, regarding ongoing unpleasant orders coming from UWS.
REPORTS AND COMMENTS
FROM CITY OFFICIALS Chief Arakawa stated that the Police Department was responsible for the hazard mitigation plan, which is done every five years. It is a requirement for CalOES and FEMA to ensure the cities have a plan in case of a nature disaster.
Chief Arakawa provided a letter to City Manager and City Council regarding his retirement from the South Gate Police Department effective Thursday, October 16, 2025. He has served for 33 years. Serving as Police Chief has been one of the greatest honors of his professional career and is forever grateful for the trust and support given to him by the City Council, this wonderful community, the Police Department, and City Manager.
Mayor Davila is thankful for having Darren Arakawa as Police Chief.
Council Member Hurtado stated that on behalf of his family and himself they are grateful for the work the Police Department has done for this community.
Council Member Rios is thankful for having Darren Arakawa as Police Chief.
Vice Mayor Barron thanked Chief Arakawa for everything he has done for this community.
Council Member Avalos is sorry to hear Chief Arakawa is retiring but understands in life tough decisions must be made. She is thankful for everything he has done for this community.
Rail F. Salinas, City Attorney stated that it is a bittersweet moment and loss to the City of South Gate. He stated the city owes Chief Arakawa a debt of gratitude for everything he has done for this community.
Mayor Davila would like to see a presentation by ChiefArakawa from his first day of work to the end.
Arturo Cervantes, Director of Public Works, there were questions with regards to the maintenance of our city trees and where we are removing trees and being grateful that some trees were removed. A couple of years ago, the city did a survey. It was kind of a hazardous mitigation type survey where all the 18,000 city trees were looked at their condition. We developed three phases of removal, and all trees have been removed. If a
REGULAR COtJNCIL, HOUSING AUTHORITY & SUCCESSOR AGENCY MEETING MINUTES OF JULY 22, 2025
REPORTS AND COMMENTS
FROM CITY OFFICIALS
CONT'D tree looks unhealthy, residents can always contact Public Works Department, and the department will look at that tree. We are now starting the planting phase.
Gabriel Perez, Director of Community Development, regarding a comment about odors from a resident. The department will be following up with that request. He thanked the Chief for his service and wonderful career.
Luis Frausto, Director of Administrative Services, congratulated Chief Arakawa on his retirement.
Thurman Green, Risk Manager, stated the insurance costs for general liability is considerably high. He has been tasked to do some investigation to find an indepenaent broker to try to find a lower cost. He thanked the Chief for his service.
Rob Houston, City Manager, responded to an item regarding pay levels for directors.
Mayor Davila asked City Attorney to speak on a certain lawsuit.
Raul F. Salinas, City Attorney, stated that about a week ago the City Council authorized the City Manager and City Attorney to take steps to have South Gate intervene in the lawsuit that had been filed by public counsel of the ACLU. They were able to get an injunction in that lawsuit against the immigration enforcement officers based on the alleged inappropriate conduct that was going on. The manner in which people were being stopped, practice and treatment in which they were being held.
Failure to identi:[y themselves and impact that was having throughout the region. The racial profiling, all those were part of the basis for the injunction by the federal district court which ruled against the federal administration and in favor of the community.
South Gate along with fourteen (14) other cities agreed to intervene in that action. That intervention motion is pending before the court. The injunction order that was issued by the district court is a subject of an emergency stay motion that the federal governrnent filed. On Monday of this week, an amicus brief was filed, a friend of the court brief was filed on behalf of South Gate along with other cities. It's filed with the court on the ninth circuit laying out the basis for why that injunction was properly issued by the district court and we'll see how that pans out. Tomorrow the federal goverent will file their opposition papers and on Friday the reply will be had, and the court will be setting a date. The brief filed on behalf of South Gate will go on the city's website and we'll have
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REPORTS AND COMMENTS
FROM CITY OFFICIALS
CONT'D informotion on the website about details on how to listen to the court oral argument.
The lawyer is Martin Estrada. He was a former U.S. Attorney in Los Angeles under the Biden Administration, and he is now a well-regarded partner at Munger, Tolls & 01sen and that law firm has agreed to represent South Gate and other cities Pro bono.
Jose De La Paz, City Treasurer, thanked Chief Arakawa for all his years of service to this community and wished him well.
Yodit Glaze, City Clerk, congratulated Chief Arakawa and appreciated his service to the community.
Mayor Davila, Council Members Hurtado and Rios had nothing to report.
Vice Mayor Barron stated having spoken to city managers and some police chiefs from local cities regarding fireworks. They have banned fireworks completely and still have illegal fireworks happening in their communities. Enforcement is still very difficult because the people must be caught while lighting illegal fireworks. He knows drones were used by either LA Police Department or Sheriffs to capture people lighting illegal fireworks and then planning to send citations at the location, and they don't know how that's going to hold up. He is suggesting getting tougher on that aspect and increasing fines.
Council Member Avalos had nothing to report.
CONSENTCALENDAR AgendaItems2,3,4,5,6,and7wereapprovedbymotionofCouncil Member Rios and seconded by Mayor Davila.
ROLL CALL: Council Member Hurtado, yes (recused from voting on items 4 and 5); Council Member Rios, yes; Vice Mayor Barron, yes; Mayor Davila, yes; Council Member Avalos, yes (no on items 5 and 7).
WATER The City Council unanimously approved items A, B & C during Consent Calendar:
a. AmendmentNo.ltoContractNo.2021-92-CC,withGeneralPump Company, Inc., to extend the term of the agreement for one year to continue providing on-call well maintenance services on an as-needed basis, and to fully fund the cost of emergency repairs performed on Well No. 24, in an amount not-to-exceed $150,000;
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b. Appropriate $50,000 to 'fund emergency repairs performed on Well No. 24; and
c. Authorized the Mayor to execute Amendment No. 1, in a form acceptable to the City Attorney.
3 WASTEWATER MGMT The City Council unanimously approved items A & B during Consent Calendar:
a. Agreement (Contract No. 2025-48-CC) with John L. Hunter and Associates, Inc. ("JLHA"), for the management of the Industrial Waste Program and the Fat, Oil, and Grease Control Program, for a three- year term, in an amount not to exceed $194,691; and b. Authorized the Mayor to execute the Agreement in a form acceptable to the City Attorney.
4 HOLLYDALE PARK
ADM The City Council approved items A, B, C & D during Consent Calendar:
a. Accepted completion of construction, effective January 31, 2025, of the Hollydale Community Park Improvement, City Project No. 607- PRK, constructed by 22 Construction; and
b. Approved Contract Change Order in the amount of $109,495; c. Appropriated$75,000fromCircleParkProject,AccountNo.31l-790- 61-9217 to Hollydale Community Park Project, Account No. 311-790- 61-9220; and
d. Directed the City Clerk to file a Notice of Completion with the Los Angeles County Registrar Recorder's Office.
5 EMERGENCY/nlSASTER
PLANNING/PROGRAMS The City Council approved items A, B, C & D during Consent Calendar:
a. Professional Services Agreement (Contract No. 2025-49-CC) with Kimley-Horn to provide on-call environmental consulting services; b. Reimbursement Agreement (Contract No. 2025-50-CC) with J.B. Hunt Transport, Inc.;
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CONT'D
c. Authorized the use of Purchase orders in directing work; and d. Authorized the Mayor to execute the Agreements in a form acceptable to the City Attorney.
6 LAW ENFORCEMENT The City Council unanimously approved items A, B & C during Consent Calendar:
a. Authorized utilization of the 2025-2026 Cannabis Tax fund Grant Program ("CTFGP") Funds in the amount of $100,000 for overtime and equipment;
b. Amended the Fiscal Year 2025/26 Law Enforcement Grants Fund Budget by appropriating $16,000 for overtime salaries and $86,000 for equipment; and
c. Authorized the Chief of Police or his designee to execute the CTFGP Agreement in a form acceptable to the City Attorney. 7 MINUTES The City Council approved items A, B, C & D during Consent Calendar:
a. TheSpecialMeetingminutesofJune3,2025;
b. The Special and Regular Meeting minutes of June 10, 2025; c. The Special Meeting minutes of June 17, 2025; and d. The Special and Regular Meeting minutes of June 24, 2025. 8 WARRANTS The City Council unanimously approved the Warrant Register for July 22, 2025, by motion of Mayor Davila and seconded by Council Member Hurtado.
Total ofChecks: $9,012,827.97
Less:Voids $ (0.00)
Less: Employee Payroll Deductions $ (440,795.22)
GrandTotal: $8,572,032.75
Cancellations: None
REGULAR COUNCIL, HOUSING AUTHORITY & SUCCESSOR AGENCY MEETING MINUTES OF JULY 22, 2025
ADJOURNMENT Council Member Rios unanimously adjourned the meeting at 10:50 p.m., in memory of Claudia Vidaurri's husband (Daniel Vidaurri) & son (German Leyva) and seconded by Mayor Davila.
PASSED and APPROVED on this 26" day of August 2025.
ATTEST:
Maria Davila, Mayor/Chairperson Yodit aze, City Clerk