City Council

(58)\n25-1533\nCOMMUNICATIONS FROM THE CITY ATTORNEY and\nPROPOSITION K – L.A. FOR KIDS STEERING COMMITTEE\n(LAFKSC), ORDINANCE OF INTENTION FIRST CONSIDERATION,\nand RESOLUTION OF INTENTION relative to the levy and collection\nof Proposition K annual assessments for Fiscal Year (FY) 2026-27 for\nthe City of Los Angeles Landscaping and Lighting District No. 96-1,\nand the proposed FY 2026-27 Proposition K Expenditure Plan.\nRecommendations for Council action, SUBJECT TO THE APPROVAL\nOF THE MAYOR:\n1. ADOPT the City Engineer’s Report for the FY 2026-27\nProposition K Assessment, included as Attachment No. 8 of the\nLAFKSC report dated April 16, 2026, attached to the Council\nfile.\n2. ADOPT the accompanying RESOLUTION OF INTENTION to\nlevy an assessment authorized by Proposition K, pursuant to\nthe Landscaping and Lighting Act of 1972, included as\nAttachment No. 9 of said LAFKSC report.\n3. PRESENT and ADOPT the accompanying ORDINANCE OF\nINTENTION, dated April 8, 2026, to levy and collect Proposition\nK annual assessments for FY 2026-27 for the City of Los\nAngeles Landscaping and Lighting District No. 96-1, pursuant\nto the Landscaping and Lighting Act of 1972, attached to the\nCouncil file and included as Attachment No. 10 of said LAFKSC\nreport.\n4. APPROVE the FY 2025-26 maintenance awards totaling $4.8\nmillion, as detailed in Attachment No. 7 of said LAFKSC report.\n5. APPROVE the reprogramming of FY 2025-26 funding\nallocations, as detailed in Attachment Nos. 1, 5, and 12 of said\nLAFKSC report.\n6. APPROVE the 2025-26 Proposition K inflation award totaling\n$0.0 million, as detailed in Attachment No. 11 of said LAFKSC\nreport.\n7. APPROVE the 2025-26 Proposition K additional specified\n(GAP) funding awards totaling $6.4 million, as detailed in\nAttachment No. 12 of said LAFKSC report.\n8. APPROVE the Health Alternatives to Smoking (HATS) Trust\nFund award of $635,437, including any added interest to the\namount advertised in the Request for Procurement (RFP) such\nthat all amounts in the fund are used in the disbursement of the\nawarded funds, for the Anderson Memorial Senior Center\nproject as discussed in Section 6 of said LAFKSC report.\n9. APPROVE the Vermont/SNAP Parks First Trust Fund (SNAP)\naward of $1,252,734, including any added interest to the\namount advertised in the RFP such that all amounts in the fund\nare used in the disbursement of the awarded funds, for the\nBarnsdall Art Park Restoration Project as discussed in Section 6\nof said LAFKSC report.\n10. AUTHORIZE the City Engineer to execute or amend grant\nagreements with Proposition K grantees that are recommended\nfor FY 2026-27 project allocations as detailed in Attachment No.\n1 of said LAFKSC report, and as needed to effectuate the FY\n2025-26 maintenance awards as detailed in Attachment No. 7\nof said LAFKSC report, and reprogramming actions as detailed\nin Attachment No. 12 of said LAFKSC report, subject to\napproval of the City Attorney.\n11. AUTHORIZE the Controller to adjust accounts, pursuant to\ninstructions to be provided by the City Administrative Officer\n(CAO), for current year maintenance awards as detailed in\nAttachment No. 7 of said LAFKSC report, inflation awards as\ndetailed in Attachment No. 11 of said LAFKSC report, GAP\nfunding as detailed in Attachment No. 12 of said LAFKSC\nreport, and residual funds reprogramming actions as detailed in\nAttachment No. 13 of said LAFKSC report, within the following\nProposition K Funds: Projects Fund No. 43K; Maintenance\nFund No. 43L; and, Administration Fund No. 43M.\n12. AUTHORIZE the Controller to adjust accounts, pursuant to\ninstructions to be provided by the CAO, for HATS Fund No. 43G\nand SNAP Fund No. 45B, inclusive of interest accrued over\ntime.\n13. AUTHORIZE the allocation of additional Proposition K – L.A. for\nKids funds to the Projects set forth in Attachment No. 13 of said\nLAFKSC report, in the amount of $15.0 million in residual\nProposition K funds reprogrammed from previously completed,\ninfeasible, or rescinded projects, subject to Council approval.\n14. AUTHORIZE the allocation of additional unspent Proposition K\nfunds in FY 2026-27 and FY 2026-27 GAP funds to the projects\nidentified as having shortfalls in Attachment No. 15 of said\nLAFSC report, in the amounts to be subsequently approved by\nthe LAFKSC and Council.\n15. AUTHORIZE the CAO and Department of Recreation and Parks\n(RAP) to make funding adjustments and prepare technical\nadjustments as needed to carry out the intent of said\nLAFKSC report; and, AUTHORIZE the Controller to implement\nthose technical adjustments.\n16. INSTRUCT the City Clerk to publish notice by May 15, 2026,\nof a public hearing to take place on May 26, 2026, at 10:00\na.m., during the regular Council meeting.\n17. REQUEST the City Attorney to prepare and present the\nOrdinance Confirming the Assessment for FY 2026-27 to be\nconsidered during the public hearing on May 26, 2026.\n18. INSTRUCT the City Clerk to set an agenda item for public\nhearing on the Council agenda for May 26, 2026, to include\nthe following actions:\na. With respect to the project(s) in List 5 of Attachment\nNo. 6 of said LAFKSC report: Acknowledge that these\nare projects that may be considered for funding after\nCalifornia Environmental Quality Act (CEQA)\ncompliance. No further action is required at this time.\nb. Adopt the Ordinance Confirming the Assessment, as\nprepared and transmitted by the City Attorney,\nconfirming the assessments and approving the\ndiagram for the Council District for FY 2026-27.\nc. Instruct the City Engineer to record a Notice of\nAssessment with the County Recorder.\nd. Approve the FY 2026-27 One-Year Plan for the L.A. for\nKids Program and related schedules, as set forth in\nAttachment Nos. 1, 2, 3, 4, and 5 of said LAKFSC\nreport.\ne. Approve the FY 2026-27 allocation of administrative\nfunds up to the following amounts within Proposition\nK Administration Fund No. 43M, as set forth in\nAttachment 5 of said LAFKSC report:\nBureau of Engineering (BOE); Amount: $214,290\nBoard of Public Works / Office of Accounting;\nAmount: $165,623\nOffice of the CAO; Amount: $144,101\nOffice of the Chief Legislative Analyst (CLA); Amount:\n$37,939\nTotal: $561,953\nf. Instruct the Information Technology Agency (ITA) to\nprepare the assessment file containing the\nassessment levy information confirmed by the City\nCouncil for FY 2026-27 for each parcel in the\nAssessment District, and make it available for the\nBOE to verify and transmit to the County of Los\nAngeles.\ng. Authorize the City Engineer to negotiate and execute\nProposition K, HATS, and SNAP grant agreements\nwith grantees that are recommended for FY 2026-27\nproject allocations as detailed in Attachment No. 1 of\nsaid LAFKSC report, except for competitive projects\nawarded to City departments, subject to approval of\nthe City Attorney.\nh. Authorize the Controller to:\ni. Set up accounts for the FY 2026-27 Proposition\nK assessment within the following Funds,\npursuant to instructions to be provided by the\nCAO: Proposition K Projects Fund No. 43K;\nProposition K Maintenance Fund No. 43L; and,\nProposition K Administration Fund No. 43M.\nii. Increase the FY 2026-27 appropriations for the\nITA by $50,000 from Proposition K Fund No.\n43K/10, Account No. 10C132 - Information\nTechnology Agency (ITA), to Fund No. 100/32,\nAccount No. 9350 - Communication Service\nRequest.\niii. Transfer cash from Proposition K Fund No.\n43K/10, on an as-needed basis upon proper\ndocumentation from the ITA and approval by the\nBOE Program Managers and the CAO.\niv. Disencumber funds within the HATS Fund No.\n43G/10 and the SNAP Fund No. 45B/10 upon\nwritten instruction by the CAO.\nv. Transfer and appropriate $635,437, and any\ninterest accrued thereon, within the HATS Fund\nNo. 43G/10, from the cash balance available\nwithin the Fund, as follows:\nAccount No. 10WPDI, Anderson Senior Center;\nAmount: $635,437\nvi. Transfer and appropriate $1,252,734, and any\ninterest\naccrued\nthereon,\nwithin\nthe\nVermont/SNAP Parks First Trust Fund No. 45B/10\nfrom the cash balance available within the Fund,\nas follows:\nAccount No. 10YPBE, Barnsdall Art Park\nRestoration Project; Amount: $1,252,734\nvii. Transfer assessment revenues to the appropriate\nProgram Funds in the approximate percentage\ndistribution, and up to the amounts reflected\nbelow:\nProposition K Fund No. 43K/10 – Capital\nProjects; Percentage Distribution: 77.51 percent;\nYear 30 Total: $19,376,730\nProposition K Fund No. 43L/10 – Maintenance;\nPercentage Distribution: 19.35 percent; Year 30\nTotal: $4,836,817\nProposition K Fund No. 43M/10 – Administration;\nPercentage Distribution: 3.14 percent; Year 30\nTotal: $786,459\nTotal: 100 Percentage Distribution; Year 30 Total:\n$25,000,000\ni. Transfer $15.0 million between departments and funds\nas specified in Attachment 14 of said LAFKSC report.\nj. Instruct the City Engineer, CAO, CLA, and Board of\nPublic Works, Office of Accounting to submit journal\nvoucher requests supported by documentation of\nwork order charges for program administrative and\nproject construction management staffing costs to the\nCAO.\nk. Instruct the General Services Department (GSD) and\nRAP to submit expenditure reports to the BOE and the\nCAO on a monthly basis.\nl. Authorize the City Engineer to make technical\ncorrections to the City Engineer’s Report to reflect the\nintent of those transactions.\nm. Authorize the CAO to make funding adjustments and\nprepare technical adjustments as needed to fully\ncommit annual assessment funds and carry out the\nintent of this Council action; and, authorize the\nController to implement those technical adjustments.\nn. Authorize the Controller, pursuant to instructions to\nbe provided by the CAO, to revert residual funds\nwithin Proposition K Funds to the originating\nProposition K project accounts for projects completed\nby the GSD and RAP as part of ongoing project\ncloseout activities.\nFiscal Impact Statement: The LAFKSC reports that adoption of an\nOrdinance and Resolution of Intention to Levy the Proposition K: L.A.\nfor Kids Assessment for FY 2026-27 indicates the Council's intention\nto levy assessments totaling $25.0 million to acquire and construct\npark and recreational and cultural facilities serving youth. The\nassessment can only be used for capital improvements, acquisition of\nland, Proposition K Program administration and maintenance of\ncompleted projects. The operating cost for Proposition K projects\ncompleted in future years will be funded by the annual operating\nbudget adopted for City departments and with independent funding for\nprojects operated by external entities. For FY 2026-27, $5.7 million in\nGeneral Fund reimbursements are anticipated for program\nadministration ($0.79 million) and maintenance ($4.9 million) as\nidentified in said LAFKSC report findings, Section 3 of said LAFKSC\nreport. The RAP reports an annual fiscal impact of $3.2 million once\nactive Proposition K projects, currently in various stages of\ndevelopment, become operational over future years. This includes\n$1.2 million for maintenance and $2.0 million for operations, as\ndetailed in Attachment Nos. 3 and 4 of said LAFKSC report. The fiscal\nimpact for completed projects will be partially offset by Proposition K\nmaintenance funding. However, this annual offset will no longer be\navailable once the Proposition K program concludes on June 30,\n2027. In FY 2025-26, the RAP will receive an award of $4.3 million for\ncurrent year maintenance awards, as detailed in Attachment 7 of said\nLAFKSC report.\nFinancial Policies Statement: The LAFKSC reports that the\nrecommended actions in said report comply with the City's Financial\nPolicies as one-time revenues are being used for one-time projects.