Ousted Council Retains Agenda

Less than a week after South Gate residents overwhelmingly voted to oust the three-member City Council majority, the council is scheduled to consider at a special meeting today several costly and controversial measures that some residents fear could cause irreparable damage to the city.

One of them would benefit a businessman linked to Treasurer Albert Robles, who also lost his office in the election.

At the meeting, which was called by Mayor Xochilt Ruvalcaba after residents voted by nearly 8-1 ratios to oust her and her allies, the council is scheduled to consider promoting at least 12 employees and awarding more than $1 million in low-interest federal loans.

The proposals, which are listed on the printed agenda, have generated concerns that any eleventh-hour actions could push the city closer to bankruptcy, because the council already has approved spending almost all of the city’s $8-million reserves.

One resident, Guillermo Salazar, is scheduled to ask a Los Angeles Superior Court judge today to halt all last-minute actions initiated by the three-member majority.

Since taking over the council two years ago, the majority has voted together on almost every measure introduced at council meetings.

“It’s obscene,” said Councilman Hector De La Torre, who backed the recall.

“These people already know they’re gone and are committing the city to spend huge sums of money and make changes to the structure of the city at a time when we need maximum flexibility to deal with a dire budget situation that they created.”

In a prepared statement, Salazar said: “What we’re saying is stop; you’ve done enough damage already. We’ve voted you out; now let it go.”

Ruvalcaba, reached by telephone, refused to comment: “I’m sorry, I have bronchitis. I don’t feel like dealing with this.”

Generating much of the controversy is a proposal to award a former business partner of Robles a $340,000 federal loan to develop a property on the city’s main street, Tweedy Boulevard.

Under terms of the proposal, George Garrido would pay no interest for the first five years and 2.5% annually after that. No information has been made public on how Garrido plans to develop the property.

The proposal comes two weeks after the council awarded him $2.5 million in low-interest loans and a $1.5-million grant to develop a recycling plant in the city. He does not have to repay the grant.

The council also is scheduled today to consider awarding a $820,000 federal loan to a company called Standard Series LLC. The company, according to city documents, would use the money to open a printing company on a site of nearly an acre on East Imperial Highway.

But it is unclear from information provided by the city who owns the company. The city’s paperwork does not include the names of the president or officers, said Councilman Henry Gonzalez, who opposes the ousted politicians and the loan award. No company named Standard Series has filed documents as a limited liability corporation, according to the secretary of state’s Web site.

Council opponents are harshly criticizing the proposals because the federal funds are earmarked to be used for economic development, and city officials have not provided detailed information about projected sales tax revenues or how many jobs would be created.

Critics also are angry that the council is scheduled to consider promoting employees they say are aligned with Robles and his council allies. Twelve are part-time community outreach workers who would be eligible for more benefits. Such promotions, critics say, could make it harder for the new council to cut staff without paying costly benefit or severance packages.

Salazar said he was acting on behalf of other concerned taxpayers in seeking the temporary restraining order that would restrict any further financial moves by the City Council.

Stephen Kaufman, an attorney representing Salazar, said, “South Gate is no ordinary city, and special circumstances dictate that the court prevent these people from conducting another midnight raid on the city treasury before they leave office.”

It is still unclear when the new council members will be installed. Although state officials have said the three newly elected council members can be sworn in Tuesday, city officials say they can’t be installed until next week. “It’s going to be a hostile crowd,” Gonzalez said, referring to today’s meeting. “There’s a mandate that has been given, and the council is in direct violation of that mandate. It’s like they’re thumbing their nose at the people one last time.”