(1)
EXEMPTION, COMMUNICATION FROM THE CITY ATTORNEY and ORDINANCE FIRST CONSIDERATION relative to the Fiscal Year (FY) 2025-26 Proposition K Assessment.
Official recommendation
ACKNOWLEDGE that the City Council’s action is exempt from the California Environmental Quality Act (CEQA) under Article II, Section 2.i. of the City’s CEQA guidelines, because the underlying project has already been evaluated and processed in accordance with the City CEQA Guidelines, with respect to the project(s) in List 3 of Attachment 8 of the L.A. or Kids Steering Committee (LAFKSC) 2025-26 Proposition K Assessment Report dated April 11, 2025 (LAFKSC Report), attached to the Council file. ACKNOWLEDGE that these are projects that may be considered for funding after CEQA compliance, and no further action is required at this time, with respect to the project(s) in List 5 of Attachment 8 of said LAFKSC Report. PRESENT and ADOPT the accompanying ORDINANCE Confirming the Assessment, dated June 5, 2025, as prepared and transmitted by the City Attorney, confirming the assessments and approving the diagram for the District for FY 2025-26. INSTRUCT the City Engineer to record a Notice of Assessment with the Los Angeles County Recorder. APPROVE the 2025-26 Two-Year Plan for the L.A. for Kids Program and related schedules, as set forth in Attachments 1, 2, 3, 4 and 7 of said LAFKSC Report. APPROVE the 2025-26 allocation of administrative funds up to the following amounts within Proposition K Fund No. 43M, for a total amount of $561,953, as set forth in Attachment 7 of said LAFKSC Report: Department of Public Works (PW) / Bureau of Engineering (BOE): $214,290 PW / Board / Office of Accounting: $165,623 Office of the City Administrative Officer (CAO): $144,101 Office of the Chief Legislative Analyst (CLA): $37,939 INSTRUCT the Information Technology Agency (ITA) to prepare the assessment file containing the assessment levy information confirmed by the City Council for 2025-26 for each parcel in the Assessment District, and make it available for the BOE to verify and transmit to the County of Los Angeles. AUTHORIZE the City Engineer to negotiate and execute Proposition K grant agreements with grantees that are recommended for 2025-26 project allocations, as detailed in Attachment 1 of said LAFKSC Report, except for competitive projects awarded to City departments, subject to approval of the City Attorney. AUTHORIZE the Controller to: Set up accounts for the 2025-26 Proposition K assessment within the following Funds, pursuant to instructions to be provided by the CAO: Proposition K Projects Fund No. 43K Proposition K Maintenance Fund No. 43L Proposition K Administration Fund No. 43M Increase the 2025-26 appropriations for the ITA by $50,000 from Proposition K Fund No. 43K/10, Account No. (TBD) – ITA, to Fund No. 100/32, Account No. 9350 – Communication Service Request. Transfer cash from Proposition K Fund No. 43K/10, on an as-needed basis upon proper documentation from the ITA and approval by the BOE Program Managers and the CAO. Transfer assessment revenues to the appropriate Program Funds in the approximate percentage distribution, and up to the amounts reflected below, for a Year 29 total amount of $25,000,000: Proposition K Fund No. 43K/10 – Capital Projects; Distribution: 78.65 percent; Year 29 Amount: $19,663,131 Proposition K Fund No. 43L/10 – Maintenance; Distribution: 19.10 percent; Year 29 Amount: $4,774,916 Proposition K Fund No. 43M/10 – Administration; Distribution: 2.25 percent; Year 29 Amount: $561,953 INSTRUCT the City Engineer, CAO, CLA, and Board of Public Works, Office of Accounting to submit journal voucher requests supported by documentation of work order charges for program administrative and project construction management staffing costs to the CAO. INSTRUCT the Department of General Services (GSD) and the Department of Recreation and Parks (RAP) to submit expenditure reports to the BOE and the CAO on a monthly basis. AUTHORIZE the City Engineer to make technical corrections to the City Engineer’s Report, attached to the Council file, to reflect the intent of those transactions. AUTHORIZE the CAO to make funding adjustments and prepare technical adjustments as needed to fully commit annual assessment funds and carry out the intent of this Council action; and, authorize the Controller to implement those technical adjustments. AUTHORIZE the Controller, pursuant to instructions to be provided by the CAO, to revert residual funds within Proposition K Funds to the originating Proposition K project accounts for projects completed by the GSD and the RAP as part of ongoing project closeout activities. Fiscal Impact Statement: The LAFKSC reports that adoption of an Ordinance and Resolution of Intention to Levy the Proposition K: L.A. for Kids Assessment for FY 2025-26 indicates the Council's intention to levy assessments totaling $25 million to acquire and construct park and recreational and cultural facilities serving youth. The assessment can only be used for capital improvements, acquisition of land, Proposition K Program administration and maintenance of completed projects. The operating cost for Proposition K projects completed in future years will be funded by the annual operating budget adopted for City departments and with independent funding for projects operated by external entities. For FY 2025-26, $5.33 million in General Fund reimbursements are anticipated for program administration ($0.56 million) and maintenance ($4.77 million), as identified in the findings, Section 3 of said LAFKSC Report. The RAP reports that an annual fiscal impact of $6.54 million once active Proposition K projects, currently in various stages of development, become operational over future years. This includes $2.24 million for maintenance and $4.30 million for operations, as detailed in Attachments 5 and 6 of said LAFKSC Report. The fiscal impact for completed projects will be partially offset by Proposition K maintenance funding. However, this annual offset will no longer be available once the Proposition K Program ends in 2026-27. In 2024-25, the RAP will receive an award of $4.1 million for current year maintenance awards, as detailed in Attachment 9 of said LAFKSC Report. Financial Policies Statement: The LAFKSC reports that the recommended actions comply with the City’s Financial Policies as one-time revenues are being used for one-time projects. Community Impact Statement: None submitted (Pursuant to Council action of April 30, 2025) Final Ordinance of Intention No. 188601 dated 6-9-25.pdf Council Action - Mayor Concurrence dated 5-02-25 Speaker Card(s)_04-30-2025 Report from L.A. For Kids Steering Committee dated 4-11-25 Report from City Attorney dated 4-09-25 Attachment to Report dated 4-09-25 - Draft Ordinance of Intention Council Action dated 10-16-24 Report from LA for Kids Steering Committee dated 8-30-24 Speaker Card(s)_10-09-2024 Proof Of Publication dated 5-9-2025 Report from City Attorney dated 6-05-25 Attachment to Report dated 6-05-25 - Draft Ordinance