City Council

(21)\n25-1319\nTRANSPORTATION COMMITTEE REPORT relative to the 2025-26\nSecond Transportation-Related Construction Projects Report.\nRecommendations for Council action, SUBJECT TO THE APPROVAL\nOF THE MAYOR:\n1. AUTHORIZE the Controller to:\na. Transfer $13,901,998 between departments and funds as\nspecified in Attachment 1 of the City Administrative Officer\nreport dated November 6, 2025 (CAO report), attached to\nthe Council file.\nb. Transfer $1,596,590 between accounts within\ndepartments and funds as specified in Attachment 2 of the\nCAO report, attached to the Council file.\nc. Appropriate $4,511,700 between accounts within\nDepartments and Funds as specified in Attachment 3 of\nthe CAO report, attached to the Council file.\nd. Transfer and establish new appropriations totaling\n$365,178.88 within the Seward Capital Fund to dedicated\nproject accounts for Item X – Shell Recharge Project\nCloseout in addition to the instructions in the CAO report,\nattached to the Council file, as follows:\ni. Transfer From: Fund 761/50, Sewer Capital Fund;\n50AHBX, TIWRP Electric Vehicle Charging\nStations - $220,355.93; 50ADAQ, HWRP Fleet\nElectrification and Greenhouse Gas - $144,822.95;\nTotal: $365,178.88.\nii. Transfer To: Fund 761/50, Sewer Capital Fund; TBD,\n“Shell Project Closeout – Hyperion” - $220,355.93;\nTBD, “Shell Project Closeout – Terminal Island” -\n$144,822.95; Total: $365,178.88.\ne. Execute the necessary documentation as required to\ncloseout the project and provide final payments for electric\nvehicle infrastructure projects completed by Shell\nReCharge.\n2. AUTHORIZE departments as detailed below to make final\npayment to Shell ReCharge for all prior services provided, for a\ntotal amount of $2,696,427:\na. General Services: Accounts 298/40V25F (2021-22),\n298/40W25F (2022-23), 298/40T25F (2023-24); Total:\n$1,369,101.\nb. Street Lighting: Account 347/50ALIS (2024-25); Total\n$30,222.\nc. Sanitation (General Services): Accounts 298/40Y25F\n(2023-24), 761/50AHBX (2024-25), 761/50ADAQ (2024-\n25); Total $365,179.\nd. Street Services: Account 298/50WEVI (2022-23); Total\n$190,000.\ne. Fire: Accounts 298/38SEVC (2019-20), 298/38AEVC\n(2024-25); Total $188,379.\nf. Police: Account 298/70S738 (2019-20); Total $526,715.\ng. Recreation and Parks (General Services): Account\n298/40Y25F (2023-24); Total $26,831.\n3. REAUTHORIZE the use of up to $1,180,590 in Municipal\nImprovement Corporation of Los Angeles (MICLA) funding\nauthority provided in the 2019-20 and 2021-22 Adopted budgets\nthat has expired and AUTHORIZE the continued use of funds\nbeyond the City’s MICLA Three-Year Spending Policy for the\ninstallation of electric vehicle charging infrastructure as follows:\na. Fiscal Year (FY): 2019-20, Fund: 298/70, Account:\n70S738, Electric Vehicle Chargers – LAPD, Amount:\n$430,125.\nb. FY: 2019-20, Fund: 298/38, Account: 38SEVC, Electric\nVehicle Chargers, Amount: $62,997.\nc. FY: 2021-22, Fund: 298/40, Account: 40V25F, Electric\nVehicle Charging Infrastructure, Amount: $687,468.\n4. AUTHORIZE the CAO to make technical corrections, as\nnecessary, to the transactions authorized through this report, as\nrequired to implement the intent of those transactions.\nFiscal Impact Statement: The CAO reports that the recommendations\nstated in this report include transfers, appropriations, and authority for\nexpenditures totaling $21.2 million. This consists of $13.2 million from\nvarious special funds, $4.6 million in MICLA, $3.1 million in Grant\nFunds, and $0.3 million in General Fund within the Capital and\nTechnology Improvement Expenditure Program (CTIEP) program. All\ntransfers and appropriations are based on existing funds,\nreimbursements, or revenues. There is a potential impact on the\nGeneral Fund for operations and maintenance costs, with the amount\nyet to be determined. These costs will be addressed through the City\nbudget process as projects are completed.\nFinancial Policies Statement: The CAO also reports that the\nrecommendations stated in this report comply with the City Financial\nPolicies in that appropriations for funds are limited to available cash\nbalances needed to fund ongoing maintenance, programming, project\nshortfalls, and critical operational needs in the current budget year.\nDebt Impact Statement: The CAO further reports that the issuance of\nMICLA debt is a General Fund obligation. The reauthorization of\nMICLA funding for the Shell ReCharge Project Closeout (Item X)\nwould cause the City to borrow $1.2 million at an approximate 5.5\npercent interest rate over a period of 20 years. The total estimated\ndebt service for the MICLA-funded projects is $2.0 million, including\ninterest of approximately $0.8 million. The estimated average annual\ndebt service is $99,000 over a period of 20 years.\nActual interest rates may differ as rates are dependent on market\nconditions at the time of issuance. We cannot fully predict what\ninterest rates will be in the future. In accordance with the City's Debt\nManagement Policy, the City has an established debt ceiling to guide\nthe evaluation of the affordability for future debt. The debt ceiling for\nnon-voted direct debt as a percentage of General Fund revenues is\nsix percent. The 2025-26 Adopted Budget non-voter-approved debt\nservice ratio is 2.40 percent. The issuance of MICLA debt for these\nprojects will not cause the City to exceed the six percent non-voter-\napproved debt limit.