Official recommendation
AUTHORIZE the Controller to: Transfer $12,065,830 between City departments and funds as specified in Attachment 1 of the August 4, 2025 City Administrative Officer (CAO) report, attached to the Council file. Transfer $2,028,541 between accounts within City departments and funds as specified in Attachment 2 of the August 4, 2025 CAO report, attached to the Council file. AUTHORIZE the Controller, in accordance with Recommendation No. 1a, to reimburse the General Fund within the Municipal Improvement Corporation of Los Angeles (MICLA), upon CAO approval and receipt of requesting City departments’ labor services, construction materials, and supply invoices for completed work to include reimbursement for labor services documentation that must contain an hourly breakdown with task descriptions and codes detailing the completed MICLA eligible work, in connection to the departmental accounts designated for the following projects: Harbor Range Parking Lot Improvements (Item A) Electric Vehicle (EV) Chargers (Item B) Alterations and Improvements (Item C) EV Infrastructure (Item K) Capital Programs – Bureau of Street Services (BSS) (Item L) Asphalt Plant 1 Phase III (Scope A) - Recycled Asphalt Pavement Canopy Structure (Item M) Asphalt Plant 1 Phase III (Scope B) - Catwalk Safety Improvement Project (Item N) Barnsdall Junior Arts Center Roof/Window Replacement (Item Y) Parking Lots 2 and 7 Reconfiguration (Item GG) Installation and Upgrade of EV Chargers (Item II) El Pueblo Parking Lot Improvements (Item KK) Public Safety Improvement Projects (Item QQ) Electrical Upgrades for E-Bike Infrastructure (Item RR) EV Chargers (Item SS) Security Improvement Projects (Item TT) Davis Training Facility Firing Range (Item VV) REDUCE appropriations in the amount of $613,443 within the Department of Recreation and Parks’ Sites and Facilities Fund No. 209/88, Account No. 88A810, Various Recreation Parks Facilities, to reflect available funds. AUTHORIZE the Controller to establish a new account within the Capital and Technology Improvement Expenditure Program (CTIEP) Fund No. 100/54; APPROPRIATE $8,185 from CTIEP Fund No. 100/54, Account No. 00C046; and, AUTHORIZE the Department of Public Works (DPW), Office of Accounting to repay the outstanding Department of Building and Safety (DBS) expedite fees associated with Funds 15H, 15L, 15M, 15S, and 16D: From: 100/54/00C046 - Citywide Maintenance and Improvements - $8,185 To: 100/54/TBD - “Building and Safety Expedite Fees” - $8,185 AUTHORIZE the Controller to establish a new account within the CTIEP Fund No. 100/54; APPROPRIATE $2,449 from CTIEP Fund No. 100/54, Account No. 00C046; and, AUTHORIZE the DPW, Office of Accounting to repay the outstanding Reserve Fund Loan associated with Fund 15M: From: 100/54/00C046 - Citywide Maintenance and Improvements - $2,449 To: 100/54/TBD - “Fund 15M Reserve Fund Loan Repayment” - $2,449 AUTHORIZE the Controller to establish a new account within the CTIEP Fund No. 100/54; APPROPRIATE $3,778 from CTIEP Fund No. 100/54, Account No. 00C046; and, AUTHORIZE the DPW, Office of Accounting to repay the outstanding Reserve Fund Loan associated with Fund 16D: From: 100/54/00C046 - Citywide Maintenance and Improvements - $3,778 To: 100/54/TBD - “Fund 16D Reserve Fund Loan Repayment” - $3,778 REAUTHORIZE the City Tourism Department (CTD) and/or the CAO to reimburse funds up to $24,058,000 in prior MICLA financing in appropriations that are over three years old, in accordance with the City’s MICLA Three-Year Spending Policy, with said authorization recommended through June 30, 2026. AUTHORIZE the transfer of $1,168,500.44 from available balances in the Development Services Trust Fund (Fund No. 58V/08) to a new appropriation account, "Marvin Braude Retail Construction" (Appropriation Account No. TBD), for recommended construction and remodeling of the Marvin Braude Mall retail spaces B and C. AUTHORIZE the Controller to transfer a total of $1,168,500.44 from the newly established “Marvin Braude Retail Construction” Account in Fund No. 58V/08 as follows: Transfer of $999,341 to the Building and Safety Building Permit Enterprise Fund No. 48R/08 Revenue Source 5301, “Reimbursements from Other Funds”, to reimburse a prior transfer made to Fund No. 100/40, for construction and remodeling of the Marvin Braude Mall retail spaces B and C. Transfer of $169,159.44 to Fund No. 48R/08, Revenue Source 5301, “Reimbursements from Other Funds”, to reimburse a prior transfer made to the Bureau of Engineering (BOE), Fund No. 100/78, for mechanical, plumbing, and electrical design services related to the remodel of the Marvin Braude Mall retail spaces B and C. REAUTHORIZE the use of $1.0 million in MICLA funding authority for the Watts Towers Resource Center Improvements project; and, AUTHORIZE the Controller to establish an Appropriation Unit for this purpose. REAUTHORIZE a total of $5,965,000 in 2021-22 MICLA funding authority and authorize the DPW, Office of Accounting to establish the following appropriation, Fund No. 298/94, Account No. TBD, “Traffic Signal Safety Projects”. REAUTHORIZE and APPROPRIATE $1,113,244 in MICLA funding authority (Fund No. 298/40, Account No. 40WP27) that is soon to expire, and authorize the use of these funds beyond the City’s MICLA Three-Year Spending Policy to fund the reconfiguration of Parking Lots 2 and 7. REAUTHORIZE and APPROPRIATE $400,000 in MICLA funding authority (Fund No. 298/40, Account No. 40W25F) that has recently expired and authorize the use of these funds beyond the City’s MICLA Three-Year Spending Policy to fund the installation of EV chargers at various facilities. REAUTHORIZE the use of $2,063,625 in 2022-23 MICLA funding authority (Fund No. 298/40, Account No. 40W26M, “Capital Program - Figueroa Plaza Building’s” and Fund No. 298/40, Account No. 40W22L, “Capital Program - Public Works Building“) and allow the continued use of funds beyond the City’s Three-Year Spending Policy for capital improvements for Figueroa Plaza and the Public Works Building. AUTHORIZE the Controller to reimburse the General Services Department (GSD) up to $280,573 in direct costs and up to $148,296 for indirect costs to the General Fund from Fund No. 682/50, Account No. 50VVHE, to fund four positions supporting the Solar and Battery System work on City-owned facilities in 2024-25. REAUTHORIZE the use of $550,000 in MICLA funding authority included in the 2024-25 Adopted Budget (Council file No. 24-0600) for the Capital Program - Figueroa Plaza Buildings Project; and, AUTHORIZE the Controller to establish an Appropriation Account for this purpose. AUTHORIZE the CAO to make technical corrections, as necessary, to the transactions authorized through the August 4, 2025 CAO report, attached to the Council file, as required to implement the intent of those transactions. Fiscal Impact Statement: The CAO reports that the recommendations stated in the August 4, 2025 CAO report, attached to the Council fIle, include transfers, appropriations, and authority for expenditures totaling $14.09 million. This consists of $5.63 million from various special funds, $6.83 million in MICLA funds, and $1.63 million in CTIEP funds. All transfers and appropriations are based on existing funds, reimbursements, or revenues. There is no additional General Fund impact for operations and maintenance costs as a result of these recommendations. Financial Policies Statement: The CAO reports that the recommendations stated in the August 4, 2025 CAO report, attached to the Council file, comply with the City’s Financial Policies in that appropriations for funds are limited to available cash balances needed to fund ongoing maintenance, programming, project shortfalls, and critical operational needs in the current budget year. Debt Impact Statement: The CAO reports that the issuance of MICLA debt is a General Fund obligation. The reauthorization of various projects (Items Z, DD, GG, JJ and PP detailed in the August 4, 2025 CAO report) would cause the City to borrow $10.7 million at an approximate 5.5 percent interest rate over a period of 20 years. The total estimated debt service for these projects is $18.0 million, including interest of approximately $7.2 million. During the life of the bonds, the estimated average annual debt service is $0.9 million over a period of 20 years. The reauthorization of Los Angeles Convention Center (LACC) MICLA projects (Item U) would cause the City to borrow $24.1 million at an approximate 5.5 percent interest rate over a period of 10 years. The total estimated debt service for these projects is $40.2 million, including interest of approximately $16.2 million. During the life of the bonds, the estimated average annual debt service is $2.0 million over a period of 10 years. Actual interest rates may differ as rates are dependent on market conditions at the time of issuance. The CAO stated that it cannot fully predict what interest rates will be in the future. In accordance with the City's Debt Management Policy, the City has an established debt ceiling to guide the evaluation of the affordability for future debt. The debt ceiling for non-voted direct debt as a percentage of General Fund revenues is six percent. The 2025-26 Adopted Budget non-voter-approved debt service ratio is 2.40 percent. The issuance of MICLA debt for these projects will not cause the City to exceed the six percent non-voter-approved debt limit. Community Impact Statement: None submitted. Joint Government Operations and Budget and Finance Committee Report 9-2-25 Transmittal Letter 8-19-25 Report from City Administrative Officer dated 8-04-25