File No. 16-1114

ENTERTAINMENT AND FACILITI ES REPORT and COMMUNICATION FROM CHAIR AND MEMBER, BUDGET AND FINANCE COMMITTEE relative to the First Construction Projects Report for Fiscal Year 2016-17.

Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

1. TRANSFER $10,451,758 between departments and funds as specified in Attachment 1 of the City Administrative Officer (CAO) report dated September 29, 2016, attached to the Council file.

2. TRANSFER $2,377,725 between accounts within departments and funds as specified in Attachment 2 of the CAO report dated September 29, 2016.

3. TRANSFER $14,131 between departments and funds from General Obligation Bond Funds as specified in Attachment 3 of the CAO report dated September 29, 2016.

4. AUTHORIZE the Controller, in accordance to Attachment 3 of the CAO report dated September 29, 2016, to transfer cash from Special Funds to reimburse the General Fund on an as-needed basis upon proper documentation from the departments and approval of the Program Managers and the CAO.

5. AUTHORIZE the Controller to:

a. Transfer $2,576 from the City's Capital Improvement Expenditure Program (CIEP), Fund No. 100/54, Account No. OON234, entitled Contingency for Construction, to a new account to be created within Cl EP, Fund No. 100/54, Account TBD , entitled Don Rodolfo Place Project.

b. Transfer $2 ,576 in expenditures for the Don Rodolfo Place Drainage Improvement Project contract with LSC Construction, Inc. (C-117825) from Engineering Special Services Fund, Fund No. 682/50, Account No. 50F212, entitled Don Rodolfo Place Repairs, to the newly created account for the project within Cl EP.

c. Repay the Public Works Trust Fund Loan in Fund No. 834 for the amount of $100,000 for the Don Rodolfo Place Drainage Improvement Project using the uncommitted balance in the Engineering Special Services Fund, Fund No. 682/50, Account No. 50F212, entitled Don Rodolfo Place Repairs.

6. AUTHORIZE the Controller to deposit funds received from the Los Angeles Department of Water and Power for the El Pueblo Water Exhibit to Cl EP, Fund No. 100/54, Revenue Source No. 4596.

7. REAPPROVE the Municipal Improvement Corporation of Los Angeles (MICLA) financing included in the 2016-17 Adopted Budget for the projects in CIEP with the amendment to remove funding in the amount of $2,000,000 for the Arbor Lerrds Project, found on Page No.3 of the CAO report dated September 29, 2016; and INSTRUCT the CAO, Bureau of Engineering, and any other relevant City departments to report on the Arbor Lerrds Project

and the timeline in which MICLA funds would be spent.

8. AUTHORIZE the CAO to make technical corrections, as necessary, to those transactions included in the CAO report dated September 29, 2016 to implement Mayor and Council intentions.

Fiscal Impact Statement: The CAO reports that transfers, appropriations and expenditure authority totaling $12,943,614 are recommended in their report dated September 29, 2016. Of this amount, $3,828,237 is for transfers, appropriations, and expenditure authority to the Department of General Services (GSD), $3,695,470 is for Public Works - Bureau of Street Lighting, and $5,419,907 is for other City funds. All transfers and appropriations are based on existing funds, reimbursements or revenues. There is no estimated annual impact due to operations and maintenance costs as a result of these recommendations (Attachment No. 5 of the CAO report dated September 29, 2016).

Debt Impact Statement: The CAO reports that the issuance of Ml CLA Bonds is a General Fund obligation. The re-authorization to use Ml CLA financing provided for in the Adopted Budget will cause the City to borrow approximately $101.6 million at a 5.0 percent interest rate. The total estimated debt service is $163.1 million which includes the borrowing amount and interest ($61.5 million). During the life of the bonds, the estimated average annual debt service is $8.2 million over 20 years. Actual interest rates may differ as rates are dependent on market conditions at the time of issuance. The CAO notes that it 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 in evaluating the affordability for future debt. The debt ceiling for non-voted direct debt as a percentage of General Fund revenues is 6.0 percent. The City is currently at 4.12 percent. The issuance of the debt from this re-authorization will not impact the City's debt capacity for non-voted approved debt as the issuance of debt for routine capital improvements is already included in the debt ratio.

Community Impact Statement: None submitted.

SUMMARY

At the meeting held on October 11, 2016, your Entertainment and Facilities Committee considered a CAO report relative to the Third Construction Projects Report for Fiscal Year 2015-16. The CAO's report dated September 29, 2016, recommends funding adjustments needed to keep construction projects on track. The financial transactions are for projects in the Cl EP, various recreational facility projects, General Obligation Bond funded projects and GSD construction projects. After an opportunity for public comment was held, the Committee moved to approve the recommendations presented in the CAO transmittal as modified, as detailed above.

Subsequently, on October 17, 2016 the Chair and a member of the Budget and Finance Committee also considered this matter. After providing an opportunity for public comment, the Budget and Finance Committee concurred with the recommendations of the Entertainment and Facilities Committee.

This matter is now forwarded to the Council for its consideration.

Respectfully Submitted,

ENTERTAINMENT AND FACILITIES COMMITTEE

MEMBER VOTE

O'FARRELL: YES

KREKORIAN: YES

BUSCAINO: YES

BUDGET AND Fl NANCE COMMITTEE

MEMBER VOTE

KREKORIAN: YES

ENGLANDER: ABSENT

MARTINEZ: ABSENT

BLUMENFIELD: ABSENT

BONIN: YES

-NOT OFFICIAL UNTIL COUNCIL ACTS-