City Council

(9) 26-1392 TRANSPORTATION and BUDGET AND FINANCE COMMITTEES’ REPORT relative to the Fiscal Year (FY) 2026-27 First Transportation- Related Construction Projects Report. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. AUTHORIZE the Controller to: a. Transfer $15,744,041 between Departments and funds as specified in Attachment 1 of the October 1, 2026 City Administrative Officer (CAO) report, attached to the Council File. b. Transfer $2,826,519 between accounts within Departments and funds as specified in Attachment 2 of the October 1, 2026 CAO report, attached to the Council File. c. Appropriate $6,614,198 between accounts within Departments and Funds as specified in Attachment 3 of the October 1, 2026 CAO report, attached to the Council File. d. In connection with the Bureau of Sanitation (BOS) - Council District 3, West Valley Solid Resources Collection District Yard Driveways (Item U of the October 1, 2026 CAO report) and in accordance with Recommendation No. 1, Reimburse the General Fund within Solid Waste Resources Revenue Bond Series 2023-A Acquisition Fund, upon CAO approval and receipt of requesting 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 Solid Waste Resources Revenue Bond Series 2023-A Acquisition Fund eligible work, relative to the Departmental accounts designated for the West Valley Solid Resources Collection District Yard Driveways Project. e. Reimburse, in accordance with Recommendation No. 1 of the October 1, 2026 CAO report, attached to the Council File, the General Fund within the Municipal Improvement Corporation of Los Angeles (MICLA), upon CAO approval and receipt of requesting departments’ labor services, construction materials, and supply invoices for completed work to include reimbursements for labor services that must contain an hourly breakdown with task descriptions and codes detailing the completed MICLA eligible work, relative to the departmental accounts designated for the Southeast Police Station Electric Vehicle Charger Infrastructure (Item DD of the October 1, 2026 CAO report). 2. RESCIND, In connection with the BOS - Sylmar Channel Project (Item Z of the October 1, 2026 CAO report), the recommended transfer and appropriation of funds in the amount of $1,500,000 for BOS - Sylmar Channel Project which was included in the 2025-26 Third TCPR (Item E; Council File No. 25-1319-S1). 3. INSTRUCT the Los Angeles Department of Transportation (LADOT) and REQUEST the Controller, in connection with the LADOT Grant Reimbursements for Vision Zero Program Projects (Item DD of the October 1, 2026 CAO report), to deposit all continuous cycles of grant reimbursement funds up to $3.25 million for the Vision Zero Traffic Signal project within the into Road Maintenance and Rehabilitation (SB1) Fund No. 59V, Dept 50, Revenue Source 3811, Reimbursement from Other Agencies. 4. REQUEST the Controller and the Board of Public Works to further appropriate any grant reimbursements for the Vision Zero Traffic Signals project from Road Maintenance and Rehabilitation (SB1) Fund No. 59V, Dept 50, Revenue Source 3811, Reimbursement from Other Agencies to Road Maintenance and Rehabilitation (SB1) Fund No. 59V, Dept. 50, Account Number 50VKTS, Account Name “Vision Zero Traffic Signal” to provide cash flow and reimbursements to front- funding sources. 5. AUTHORIZE the CAO to make technical corrections, as necessary, to the transactions authorized through the October 1, 2026 CAO report, attached to the Council File, as required to implement the intent of those transactions. 6. REAUTHORIZE the following: a. MICLA Funds for Electric Vehicle Charger Infrastructure (Item EE of the October 1, 2026 CAO report) b. The use of up to $4,000,000 in MICLA funding authority included in the 2026-27 Adopted Budget (Council File No. 26-0600) for Electric Vehicle Charger Infrastructure; and, authorize the Controller to establish an appropriation account for this purpose. c. MICLA Funds for Glendale-Hyperion Complex of Bridges (Item GG of the October 1, 2026 CAO report) d. Use of $59,686,000 in MICLA front-funding authority included in the 2026-27 Adopted Budget (Council File No. 26-0600) for the Glendale-Hyperion Complex of Bridges with the following annual projected issuance amounts through the life of the project: i. 2026-27 ($13,382,000) ii. 2027-28 ($10,238,000) iii. 2028-29 ($9,885,000) iv. 2029-30 ($12,885,000) v. 2030-31 (13,296,000) 7. AUTHORIZE the Controller, upon CAO approval, to: a. Advance up to $59,686,000 million from Commercial Paper Fund No. 298 to the Glendale-Hyperion Complex of Bridges Fund No. TBD through the project duration to be repaid from State and Federal funds received as reimbursement for the Glendale-Hyperion Complex of Bridges Project. b. Establish a new interest-bearing fund entitled “Glendale Hyperion Complex of Bridges Fund” in Department 50 to receive and disburse funds received from both the State and Federal governments as reimbursement for the Council approved Glendale Hyperion Complex of Bridges Project which is administered by the Board of Public Works and Bureau of Engineering. 8. AUTHORIZE the Controller to: a. Establish new accounts within the Glendale Hyperion Complex of Bridges Fund, No. TBD, Department 50 based on the project phases and expend funds directly from these newly created accounts within the project budgeted amounts. b. Expend these funds upon proper demand of the City Engineer and BOE. 9. INSTRUCT the City Engineer and REQUEST the Controller, to deposit grant reimbursement proceeds for the Glendale Hyperion Complex of Bridges to the Glendale-Hyperion Complex of Bridges Fund No. TBD through the project duration for reimbursements and cashflow. 10. REMOVE Recommendation D from Attachment 1 to the October 1, 2026 CAO report, attached to the Council File to appropriate $74,891.60 from the Community Development Trust Fund to the Public Works BSS. 11. TRANSFER and APPROPRIATE $1,120,099 from the Measure M Local Return Fund 59C, Department No. 94, Account No. 94C992, Bicycle Path Maintenance to the General Services Department Fund No. 100, Department No. 40, as follows: a. $202,058 to Account No. 1014, Salaries Construction b. $435,444 to Account No. 1101, Hiring Hall Construction c. $290,297 to Account No. 1121 Benefits Hiring Hall Construction d. $192,300 to Account No. 3180 Construction Materials Fiscal Impact Statement: The CAO reports that the recommendations in the October 1, 2026 CAO report, attached to the Council File, include reauthorization of Municipal Improvement Corporation of Los Angeles (MICLA) financing, transfers, appropriations, and expenditure authorities totaling $90.33 million. Of this amount, $63.73 million is a reauthorization of MICLA funding included in the 2026-27 Adopted Budget, and $0.06 million is in MICLA financing transfers for reimbursement for eligible completed work. The remaining transactions consist of $21.94 million from various special funds, $1 million in grant funds, $0.2 million in bond funds, and $3.4 million from the General Fund within the Capital and Technology Improvement Expenditure Program (CTIEP). All transfers and appropriations are based on existing funds, reimbursements, or projected revenues. There is a potential, undetermined impact on the General Fund for future operations and maintenance costs. These costs will be addressed through the regular City budget process as projects are completed. Financial Policies Statement: The CAO reports that the recommendations stated in the October 1, 2026 CAO report, attached to the Council File, comply with the City Financial Policies in that as the recommended transactions use current revenues and balances to pay for current operations. Debt Impact Statement: The CAO reports that the issuance of MICLA debt is a General Fund obligation. The proposed MICLA reauthorization for the Electric Vehicle Charger Infrastructure Project (Item EE of the October 1, 2026 CAO report) would cause the City to borrow $4.0 million at an approximate 5.5 percent interest rate over a period of 10 years. The total estimated debt service for this project is $5.3 million, including interest of approximately $1.3 million. The estimated average annual debt service is $0.5 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 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 2026-27 non-voter-approved debt service ratio is 2.40 percent. The issuance of MICLA debt for this project will not cause the City to exceed the six percent non-voter- approved debt limit.