City Council

(34) 26-0464 BUDGET AND FINANCE COMMITTEE REPORT and RESOLUTION relative to the acceptance of Fiscal Year (FY) 2025-26 State Specified Earmark Grants, and FY 2026 Federal Community Project Funding (CPF) and Congressionally Directed Spending (CDS) Earmark Grants. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. AUTHORIZE the General Manager, Department of Recreation and Parks (RAP), and Fire Chief, Los Angeles Fire Department (LAFD), or designees, and the Office of the City Administrative Officer (CAO) to accept the FY 2025-26 State Earmark Grants; and, if required, submit the accompanying Governing Body RESOLUTION to the grantor, included as Attachment 1 of the CAO report dated March 26, 2026, attached to the Council file. 2. AUTHORIZE the General Manager, RAP, and Fire Chief, LAFD, or designees, to negotiate, execute, and submit all associated grant documentation, including but not limited to grant applications and/or project information packages (PIP), agreements, amendments, and payments requests, necessary for the acceptance and use of FY 2025-26 State Specified Earmark Grants, as detailed in Attachment 2 of said CAO report. 3. AUTHORIZE the General Manager, RAP, and Fire Chief, LAFD, or designees, to establish a separate interest-bearing fund or account for each project, and accept and disburse the grant funds in accordance with the amounts specified in Attachment 2 of said CAO report. 4. AUTHORIZE the General Manager, RAP, or designee, upon receipt of funds in the amount of $2 million designated in the 2025 State Budget Act, to rebuild and rehabilitate recreation facilities affected by the Palisades Fire, deposit said funds into the RAP Fund No. 205/89, and appropriate the funds into a new appropriation account named Pacific Palisades Recreation Facilities Reconstruction Project. 5. AUTHORIZE the Fire Chief, LAFD, or designee, to: a. Upon receipt of funds in the amount of $500,000 designated in the California Budget Act of 2025 for firefighting resources, deposit said funds into the LAFD Grant Fund No. 335/38, and establish and appropriate the funds into a new appropriation account named Firefighting Resources. b. Submit to the CAO a list of firefighting resources by description, number of units, and amount per unit, and total cost. 6. AUTHORIZE the CAO, or designee, to: a. Upon receipt of funds in the amount of $8,000,000 designated in the California Budget Act of 2025 for fire engine purchases, deposit said funds into the Grants and Awards Fund No. 65W/10, and establish and appropriate the funds into a new appropriation account named Fire Engine Purchase. b. Upon presentation of documentation or proper demand, transfer the funds to the LAFD to implement the project activities and expend the funds in accordance with the purpose identified in the project description. 7. AUTHORIZE the General Managers, or designees, of departments that have been awarded FY 2026 Federal CPF or CDS, collectively known as Earmark grants, as detailed in Attachment 3 of said CAO report, to accept the award and: a. Negotiate, execute, and submit all necessary grant documentation, including but not limited to grant applications and/or PIP, agreements, amendments, and payment requests, which may be necessary for the acceptance and use of grant funds for the projects with the designated federal administering agencies. b. Establish a separate interest-bearing fund or account, and accept and disburse the grant funds in accordance with the amounts specified in Attachment 3 of said CAO report. 8. AUTHORIZE the aforementioned General Managers, or designees, of the lead departments, as detailed in Attachments 2 and 3 of said CAO report, to prepare Controller instructions or make any necessary technical corrections or clarifications to the above recommendations and fund transfer instructions in order to effectuate the intent of these matters, including any corrections and changes to funds or account numbers, subject to the approval of the CAO; and, AUTHORIZE the Controller to implement these instructions. Fiscal Impact Statement: The CAO reports that approval of the recommendations stated in said report will not result in a General Fund impact to the extent that there are no match requirements and additional General Funds are not required to complete the funded earmark projects. However, there is a General Fund impact to the extent that the administration of pass- through grants are not funded or reimbursable activities. Financial Policies Statement: The CAO reports that the City’s Financial Policies supports the City’s pursuit of federal, state, and private grants but requires a careful review of the need for, and availability of, financial support of these programs beyond available grant funding. A review of the impact of all the projects funded in the FY 2025-26 State Earmark Grants and FY 2026 Federal Earmark Grants programs has not been conducted. If required, funds necessary for the completion or continued maintenance of such projects will be requested through the City’s annual budgetary process.