| 20251202 |
LA County |
Los Angeles |
City Council |
Item |
(13)
25-0874-S1
GOVERNMENT OPERATIONS and BUDGET AND FINANCE
COMMITTEES’ REPORT relative to the Fiscal Year (FY) 2025-26
Second Construction Projects Report.
Recommendations for Council action, SUBJECT TO THE APPROVAL
OF THE MAYOR:
1. AUTHORIZE the Controller to:
a. Transfer $27,119,080 between departments and funds as
specified in Attachment 1 of the October 15, 2025 City
Administrative Officer (CAO) report, attached to the
Council file.
b. Transfer $700,000 between accounts within departments
and funds as specified in Attachment 2 of the October 15,
2025 CAO report, attached to the Council file.
c. Appropriate $4,160,494 between accounts within
departments and funds as specified in Attachment 3 of the
October 15, 2025 CAO report, attached to the Council file.
d. In accordance with Recommendation No. 1a, reimburse
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, in
connection with departmental accounts designated for the
following projects, as detailed in the October 15, 2025
CAO report, attached to the Council file:
i. Access Control Units Replacement, City Hall East
(Item N)
ii. City Hall East Structural Assessment Project, Planter
Asbestos Abatement (Item R)
iii. Seventh Street Body Shop (Item T)
iv. Alterations and Improvement (Item X)
v. Frank Hotchkin Memorial Training Center
Improvements (Item Z)
2. AUTHORIZE the following:
a. Establishing a new appropriation account entitled Seventh
Street Body Shop in the amount of $2.0 million within
MICLA Fund No. 298/40, Account No. TBD - Seventh
Street Body Shop
b. Reprogramming 2023-24 and 2025-26 MICLA Funding
and Communications Equipment Purchases as detailed in
Items V and W of the October 15, 2025 CAO report,
attached tot he Council file.
c. Reprogramming MICLA savings from equipment
purchases adopted in the 2023-24 and 2025-26 budgets
to purchase replacement vehicles.
3. AUTHORIZE the CAO to make technical corrections, as
necessary, to the transactions authorized through said
CAO report, as required to implement the intent of those
transactions.
Fiscal Impact Statement: The CAO reports that the recommendations
stated in the October 15, 2025 CAO report, attached to the Council
file, include transfers, appropriations, and authority for expenditures
totaling $32.0 million. This consists of $4.9 million from various
special funds, $23.4 million in MICLA funds, $2.2 million in Capital
and Technology Improvement Expenditure Program (CTIEP) funds,
and $1.4 million in General Fund. All transfers and appropriations are
based on existing funds, reimbursements, or revenues. There is an
anticipated General Fund impact in an amount not yet determined for
operations and maintenance costs of the Barnsdall Art Park –
Residence, a facility that is currently not in operation. These costs will
be addressed through the City budget process at the time the facility
is scheduled for completion
Financial Policies Statement: The CAO reports that the
recommendations stated in the October 15, 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 proposed MICLA fund
appropriation for the capital project described in Item T would cause
the City to borrow $2.0 million at an approximate 5.5 percent interest
rate over a period of 20 years. The total estimated debt service for the
MICLA-funded projects is $3.3 million, including interest of
approximately $1.3 million. The estimated average annual debt
service is $167,000 over a period of 20 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 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. |
December 02, 2025
LA County
Los Angeles
City Council
Item
#13
|