AGENDA LOS ANGELES CITY COUNCIL
Wednesday, October 8, 2014 10:00 AM JOHN FERRARO COUNCIL CHAMBER ROOM 340, CITY HALL 200 NORTH SPRING STREET, LOS ANGELES, CA 90012 Click on the Council file number to access background documents for individual agenda items Click here for the entire agenda packet / documents
President GILBERT A. CEDILLO, First District
HERB J. WESSON, JR., Tenth District PAUL KREKORIAN, Second District
BOB BLUMENFIELD, Third District
President Pro Tempore PAUL KORETZ, Fifth District
MITCHELL ENGLANDER, Twelfth District NURY MARTINEZ, Sixth District
FELIPE FUENTES, Seventh District
Assistant President Pro Tempore BERNARD C. PARKS, Eighth District
TOM LABONGE, Fourth District CURREN D. PRICE, JR., Ninth District
MIKE BONIN, Eleventh District
MITCH O'FARRELL, Thirteenth District
JOSE HUIZAR, Fourteenth District
JOE BUSCAINO, Fifteenth District
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Wednesday - October 8, 2014 - PAGE 1 BASIC CITY COUNCIL MEETING RULES
AGENDAS - The City Council meets Tuesday, Wednesday and Friday at 10:00 A.M. The agendas for City Council meetings contain a brief general description of those items to be considered at the meetings. Council Agendas are available in the Office of the City Clerk, Council and Public Services Division, Room 395, City Hall, 200 North Spring Street, Los Angeles, CA 90012, and on the City's website at lacity.org ; or lacouncilcalendar.com
Ten (10) members of the Council constitute a quorum for the transaction of business. The Council may consider an item not listed on the agenda only if it is determined by a two-thirds (10) vote that the need for action arose after the posting of an Agenda. Some items on the agenda may be approved without any discussion, however, any item may be called "special" by a Councilmember. If an item is called "special" it will be "held" until the remainder of the items on the Council agenda have been acted on by the Council. An item may also be called "special" if a member of the public has requested to speak on the item and a public hearing was not previously held.
The City Clerk will announce the items to be considered by the Council, however items will be grouped. For example, all items for which required public hearings have not previously been held are listed in one section on the printed agenda. The Council President will ask if any Councilmember or member or the public wishes to speak on one or more of these items. If anyone wishes to speak on an item, it will be called "special". The remaining items in this section will be voted on by Council with one roll call vote.
PUBLIC INPUT AT CITY COUNCIL MEETINGS - An opportunity for the public to address the Council on agenda items for which public hearings have not been held will be provided at the time the item is considered. Members of the public who wish to speak on any item (a cumulative time of five (5) minutes) are requested to complete a speaker card for each item they wish to address, and present the completed card(s) to the Sergeant-At-Arms. Speaker cards are available at the back of the Council Chamber.
The Council will also provide an opportunity for the public to speak on public interest items for a cumulative total of up to fifteen (15) minutes. Testimony shall be limited in content to matters which are within the subject matter jurisdiction of the Council. The City Council may not take any action on matters discussed during the public testimony period.
If you wish to provide documents to the full Council for consideration on an item, please present the Sergeant-At-Arms with 35 copies. Otherwise, your materials will simply be added to the official record.
COUNCIL DISCUSSION AND TIME LIMITS - Councilmembers requesting to address the Council will be recognized by the Council President in the order requested. For any item, the Chairperson of the Committee, or the maker of the original motion, or the member calling a matter "special" shall have up to six (6) minutes to discuss the item. All other Councilmembers may speak up to three (3) minutes each on the matter. After all members desiring to speak on a question have had an opportunity to be heard once, the time for each Member desiring to speak again shall be limited to a maximum of three (3) minutes.
A motion calling the "previous question" may be introduced by any member during a Council debate. If adopted, this motion will terminate debate on a matter and the Chair will instruct the Clerk to call the roll on the matter.
VOTING AND DISPOSITION OF ITEMS - Most items require a majority vote of the entire membership of the Council (8 members). Items which have not been discussed in a Council Committee and have been placed directly on the agenda will require 10 votes to consider. Once considered, these items will normally require eight (8) affirmative votes to be adopted. Ordinances require a unanimous vote (at least 12 members must be present) in order to be adopted on first consideration. If an ordinance does not receive the necessary unanimous vote, it is laid over one calendar week. The votes required for approval on second consideration vary and depend upon the type of ordinance, but a typical ordinance requires eight (8) affirmative votes upon second consideration.
When debate on an item is completed, the Chair will instruct the Clerk to "call the roll". Every member present must vote for or against each item; abstentions are not permitted. The Clerk will announce the votes on each item. Any member of Council may move to "reconsider" any vote on any item on the agenda, except to adjourn, suspend the Rules, or where an intervening event has deprived the Council of jurisdiction, providing that said member originally voted on the prevailing side of the item. The motion to "reconsider" shall only be in order once during the meeting, and once during the next regular meeting. The member requesting reconsideration shall identify for all members present the agenda number, Council file number and subject matter previously voted upon. A motion to reconsider is not debatable and shall require an affirmative vote of eight (8) members of the Council.
When the Council has failed by sufficient votes to approve or reject an item, and has not lost jurisdiction over the matter, or has not caused it to be continued beyond the next regular meeting, the item is continued to the next regular meeting for the purpose of allowing the Council to again vote on the matter.
The City Council rules provide that all items adopted by the Council will not be presented to the Mayor, or other designated officer by the City Clerk until the adjournment of the regular Council meeting following the date of the Council action. A motion to send an item "forthwith" if adopted by ten (10) votes, suspends these rules and requires the City Clerk to forward the matter to the Mayor, or other officer, without delay.
RULE 16 MOTIONS - Council Rule No. 16, in part, allows a member to send an item directly to the Council without it having to go to a Council Committee first, by giving the City Clerk a motion (seconded by an additional member) during a Council session to be placed on the next regular available Council agenda.
Los Angeles City Council Agenda Wednesday, October 8, 2014 JOHN FERRARO COUNCIL CHAMBER ROOM 340, CITY HALL 200 NORTH SPRING STREET, LOS ANGELES, CA 90012 - 10:00 AM
Roll Call Approval of the Minutes Commendatory Resolutions, Introductions and Presentations Items Noticed for Public Hearing ITEM NO. (1) HEARING PROTEST, APPEALS OR OBJECTIONS to Building and Safety Department report and confirmation of lien for nuisance abatement costs and/or non-compliance of code violations/Annual Inspection Wednesday - October 8, 2014 - PAGE 2 costs, pursuant to Los Angeles Municipal Code (LAMC) and/or Los Angeles Administrative Code (LAAC).
Recommendation for Council action:
HEAR PROTEST, APPEALS OR OBJECTIONS relative to proposed lien for nuisance abatement costs and/or non-compliance of code violations/Annual Inspection costs, pursuant to LAMC and/or LAAC and CONFIRM said lien for the following properties: (a) 14-0160-S275 CD 11 7514 West 90th Street. (Lien: $2,922.82)
(Continued from the Council meeting of September 24, 2014)
(b) 14-0160-S276 CD 7 9672 North Stonehurst Avenue. (Lien: $610.75)
(Continued from the Council meeting of September 24, 2014)
ITEM NO. (2) 13-1562-S1 COMMUNICATIONS FROM THE BOARD OF WATER AND POWER COMMISSIONERS and CITY ADMINISTRATIVE OFFICER, ORDINANCE FIRST CONSIDERATION and RESOLUTION OF NECESSITY relative to authorization to commence eminent domain proceedings to acquire 44 parcels of real property in the vicinity northeast of Mojave and south of the Barren Ridge Switching Station in Kern County, California.
Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:
1. CONCUR with the Board of Water and Power Commissioners' (Board) September 16, 2014 action (Resolution No. 15-047) authorizing the commencement of eminent domain proceedings to acquire 44 parcels of real property in the vicinity northeast of Mojave and south of the Barren Ridge Switching Station in Kern County, California as described in the September 18, 2014 Board report, attached to the Council file.
2. ADOPT the accompanying RESOLUTION OF NECESSITY as incorporated in Resolution 15-047, attached to the Council file, authorizing the Los Angeles Department of Water and Power (LADWP) to exercise eminent domain for the acquisition of land necessary for the Barren Ridge Renewable Transmission Project located in Kern County, California.
3. PRESENT and ADOPT the accompanying ORDINANCE finding that the public interest and necessity require the acquisition by eminent domain of those certain real properties located in the vicinity northeast of Mojave and south of the Barren Ridge Switching Station in Kern County, California and legally described in Attachment A, attached to the Council file, for the Barren Ridge Renewables Transmission Project.
Fiscal Impact Statement : The City Administrative Officer reports that approval of Resolution 15-047 authorizes a process to legally acquire certain parcels of land; however, it does not result in an additional fiscal impact. Funding of up to $22 million from the Power Revenue Fund was previously approved for land acquisition and associated costs, by ordinance, under a separate request by the LADWP Board of Commissions (Resolution No. 14-098) and authorized by the Mayor and City Council (Council File No. 13- 1562). The appraised value of the parcels to be acquired through this proposed process totals approximately $233,975. The proposed resolution complies with the LADWP's adopted Financial Policies. There is no impact to the City's General Fund.
(Energy and Environment Committee waived consideration of the above matter)
(10 VOTES REQUIRED)
ITEM NO. (3) Wednesday - October 8, 2014 - PAGE 3 14-1253 CD 14 HEARING COMMENTS relative to an Application for Determination of Public Convenience or Necessity for the sale of alcoholic beverages for on- and off-site consumption at Amante Pizza and Pasta restaurant.
Recommendations for Council action:
1. DETERMINE that the issuance of a liquor license at Amante Pizza and Pasta restaurant located at 121-123-125 East 9th Street, Los Angeles, 90015, will serve the Public Convenience or Necessity and will not tend to create a law enforcement problem.
2. GRANT the Application for Determination of Public Convenience or Necessity for the sale of alcoholic beverages for on- and off-site consumption at 121-123-125 East 9th Street.
3. INSTRUCT the City Clerk to transmit this determination to the State Department of Alcoholic Beverage Control as the required findings under Business and Professions Code Section 23958.4.
Applicant: Maximus 333, LLC
TIME LIMIT FILE – DECEMBER 15, 2014
(LAST DAY FOR COUNCIL ACTION - DECEMBER 12, 2014)
Items for which Public Hearings Have Been Held
ITEM NO. (4) 14-0600-S243 PUBLIC SAFETY COMMITTEE REPORT relative to Los Angeles Police Department's (LAPD) Narcotics Analysis Laboratory Trust Fund (NALTF) Expenditure Plan No. 17.
Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:
1. APPROVE the NALTF Expenditure Plan No. 17 for $424,800 and AUTHORIZE the LAPD to expend the funds according to the State of California and City policy.
2. AUTHORIZE the Controller to:
a. Establish appropriation accounts within NALTF No. 863/70, as follows:
Account Title Amount TBD Plan 17 Casework Overtime $120,000 TBD Plan 17 Toxicology Analyses 85,000 TBD Plan 17 Equipment 219,800 Total: $424,800
b. Increase appropriations as needed from Fund 863/70, Plan 17 Casework Overtime account, to LAPD Fund 100170, Account No. 001090 General Overtime, by an amount not to exceed $120,000.
3. AUTHORIZE the LAPD to prepare instructions for the Controller for any technical adjustments, subject to the approval of the City Administrative Officer (CAO); and, AUTHORIZE the Controller to implement the instructions.
Fiscal Impact Statement : The CAO reports that this action will not impact the General Fund. Approval of the NALTF Expenditure Plan No. 17 authorizes the LAPD to spend up to $424,800 from the Fund. This action complies with City Financial Policies in that one-time revenue is used for one-time expenditures.
Community Impact Statement : None submitted.
ITEM NO. (5) 12-0014-S22 Wednesday - October 8, 2014 - PAGE 4 BUDGET AND FINANCE COMMITTEE REPORT relative to an increase in funding and contract amendment for an attorney conflicts panel contract.
Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:
1. AUTHORIZE the City Administrative Officer (CAO), or designee, to execute a fourth contract amendment to Contract No. C-121063 with the law firm of Byrne & Nixon, and to encumber funds totaling $3,875,000 from the Attorney Conflicts Panel Fund No. 46T, Department 10, for a revised contract cumulative total of $6,325,000, subject to the review of the City Attorney.
2. AUTHORIZE the CAO, or designee, to make any technical adjustments needed to implement the intent of the Mayor and Council action; and, AUTHORIZE the Controller to implement those instructions.
Fiscal Impact Statement : The CAO reports that the proposed contract amendment is in compliance with City Financial Policies. The recommendations in this report may have an impact on the General Fund. The proposed contract amendment, in combination with other Attorney Conflicts Panel contracts, may require additional funds for the ACP Fund No. 46T to fund the necessary expenses this fiscal year. The CAO will report on the Fund Balance in future Financial Status Reports.
Community Impact Statement : None submitted.
ITEM NO. (6) 14-0600-S242 BUDGET AND FINANCE COMMITTEE REPORT relative to the results from the 2014 Tax and Revenue Anticipation Notes Transaction.
Recommendation for Council action:
NOTE and FILE the City Administrative Officer's report relative to the results from the 2014 Tax and Revenue Anticipation Notes Transaction.
Fiscal Impact Statement : Not applicable.
Community Impact Statement : None submitted.
Items for which Public Hearings Have Not Been Held - (10 Votes Required for Consideration)
ITEM NO. (7) 14-1306 CD 9 COMMUNICATION FROM THE BUREAU OF STREET LIGHTING and ORDINANCE OF INTENTION FIRST CONSIDERATION relative to establishing a hearing date for the maintenance of the Hoover and 30th Streets Lighting District.
Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:
1. ADOPT the report of the Director, Bureau of Street Lighting, dated September 25, 2014.
2. PRESENT and ADOPT the accompanying ORDINANCE OF INTENTION setting the date of DECEMBER 10, 2014 as the hearing date for the maintenance of the Hoover and 30th Streets Lighting District, in accordance with Proposition 218, Articles XIIIC and XIIID of the California Constitution and Government Code Section 53753.
Fiscal Impact Statement : The Bureau of Street Lighting reports that if adopted, $3,587.98 will be collected annually starting with tax year 2014-15 that will go into a dedicated street lighting maintenance assessment account for the use in the operation and maintenance of this street lighting system.
(Board of Public Works Hearing Date: December 3, 2014)
Wednesday - October 8, 2014 - PAGE 5 ITEM NO. (8) 14-1307 CD 11 COMMUNICATION FROM THE BUREAU OF STREET LIGHTING and ORDINANCE OF INTENTION FIRST CONSIDERATION relative to establishing a hearing date for the maintenance of the Inglewood Boulevard and Victoria Avenue Street Lighting District.
Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:
1. ADOPT the report of the Director, Bureau of Street Lighting, dated September 25, 2014.
2. PRESENT and ADOPT the accompanying ORDINANCE OF INTENTION setting the date of DECEMBER 10, 2014 as the hearing date for the maintenance of the Inglewood Boulevard and Victoria Avenue Street Lighting District, in accordance with Proposition 218, Articles XIIIC and XIIID of the California Constitution and Government Code Section 53753.
Fiscal Impact Statement : The Bureau of Street Lighting reports that if adopted, $183.79 will be collected annually starting with tax year 2014-15 that will go into a dedicated street lighting maintenance assessment account for the use in the operation and maintenance of this street lighting system.
(Board of Public Works Hearing Date: December 3, 2014)
ITEM NO. (9) 14-1308 CD 2 COMMUNICATION FROM THE BUREAU OF STREET LIGHTING and ORDINANCE OF INTENTION FIRST CONSIDERATION relative to establishing a hearing date for the maintenance of the Satsuma Avenue and Magnolia Boulevard No. 3 Street Lighting District.
Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:
1. ADOPT the report of the Director, Bureau of Street Lighting, dated September 22, 2014.
2. PRESENT and ADOPT the accompanying ORDINANCE OF INTENTION setting the date of DECEMBER 10, 2014 as the hearing date for the maintenance of the Satsuma Avenue and Magnolia Boulevard No. 3 Street Lighting District, in accordance with Proposition 218, Articles XIIIC and XIIID of the California Constitution and Government Code Section 53753.
Fiscal Impact Statement : The Bureau of Street Lighting reports that if adopted, $248.71 will be collected annually starting with tax year 2014-15 that will go into a dedicated street lighting maintenance assessment account for the use in the operation and maintenance of this street lighting system.
(Board of Public Works Hearing Date: December 3, 2014)
ITEM NO. (10) 14-1309 CD 3 COMMUNICATION FROM THE BUREAU OF STREET LIGHTING and ORDINANCE OF INTENTION FIRST CONSIDERATION relative to establishing a hearing date for the maintenance of the Woodland Hills Street Lighting District.
Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:
1. ADOPT the report of the Director, Bureau of Street Lighting, dated September 22, 2014.
2. PRESENT and ADOPT the accompanying ORDINANCE OF INTENTION setting the date of DECEMBER 10, 2014 as the hearing date for the maintenance of the Woodland Hills Street Lighting District, in accordance with Proposition 218, Articles XIIIC and XIIID of the California Constitution and Government Code Section 53753.
Fiscal Impact Statement : The Bureau of Street Lighting reports that if adopted, $9,430.68 will be collected annually starting with tax year 2014-15 that will go into a dedicated street lighting maintenance assessment account for the use in the operation and maintenance of this street lighting system.
Wednesday - October 8, 2014 - PAGE 6 (Board of Public Works Hearing Date: December 3, 2014)
ITEM NO. (11) RESOLUTIONS relative to removing various properties from the Rent Escrow Account Program.
Recommendation for Council action:
ADOPT the accompanying RESOLUTIONS removing the following properties from the Rent Escrow Account Program (REAP), inasmuch as the owner(s) have corrected the cited REAP violations and provided proof of compliance with the Los Angeles Housing and Community Investment Department (LAHCID), Code Enforcement Unit, habitability citations, pursuant to Ordinance 173810, and ADOPT the Findings contained in the LAHCID's report attached to the Council File: (a) 14-0005-S390 CD 1 1936 North Griffin Avenue (Case No. 419198) Assessor I.D. No. 5210-017-012
(b) 14-0005-S391 CD 2 13515 West Burbank Boulevard (Case No. 419251) Assessor I.D. No. 2343-012-024
(c) 14-0005-S392 CD 8 9500 South Central Avenue (Case No. 449385) Assessor I.D. No. 6049-013-038
(d) 14-0005-S393 CD 13 232 South Alexandria Avenue (Case No. 107257) Assessor I.D. No. 5518-014-018
(e) 14-0005-S394 CD 13 1187 North Ardmore Avenue (Case No. 355756) Assessor I.D. No. 5537-014-016
ITEM NO. (12) 14-1284 BUDGET AND FINANCE COMMITTEE REPORT relative to the First Construction Projects Reports for Fiscal Year 2014-15.
Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:
1. TRANSFER $1,941,007 between departments and funds as specified in Attachment 1 of the City Administrative Officer (CAO) report dated September 19, 2014 attached to the Council file.
2. TRANSFER $5,473,795 between funds and other financings, as specified in Attachment 2.
3. TRANSFER $1,701,732 between accounts within departments and funds as specified in Attachment 3.
4. TRANSFER $56,000 between departments and funds from General Obligation Bond Funds as specified in Attachment 4.
Wednesday - October 8, 2014 - PAGE 7 5. AUTHORIZE the Controller, in accordance with Attachment 2, to transfer cash from Proposition K and Other 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.
6. INSTRUCT the Bureau of Engineering (BOE) to submit required documentation to Caltrans to cancel and deobligate $924,000 for the Barham/Cahuenga Corridor Transportation Improvements Phase IV Project.
7. INSTRUCT the BOE to submit required documentation to Caltrans to cancel and deobligate $1,532,000 for the San Fernando Mission Boulevard - Sepulveda to the Golden State Freeway Improvements Project.
8. AUTHORIZE the Controller to decrease appropriations totaling $800,000 from Measure R Local Match Fund 51Q/94, Account 94G401, San Fernando Mission Rd. Widening.
9. APPROPRIATE from GSD Trust Fund 843/40, Account 2200, Miscellaneous Deposits to GSD Trust Fund 843/40, Account TBD entitled Marvin Braude HVAC Improvement.
10. TRANSFER expenditure of $381,324 (P01452872) from CIEP 100/54, Account 00K077 entitled Citywide Infrastructure Improvements, to GSD Trust Fund 843/40, Account TBD entitled Marvin Braude HVAC Improvement.
11. AUTHORIZE the Controller to appropriate from Fund 26M/40, Account TBD entitled QECB Projects to GSD Fund 100/40 as follows to:
Fund No. Account Title Amount 100/40 003040 Contractual Services $116,144.58
12. AUTHORIZE the CAO to make technical corrections, as necessary, to those transactions included in this report to implement Mayor and Council intentions
Fiscal Impact Statement : The CAO reports that transfers, appropriations and expenditure authority totaling $9,172,534 are recommended in the September 19, 2014 CAO report, attached to the Council file. Of this amount, $6,772,058 is for transfers, appropriations, and expenditure authority to the General Services Department and $2,400,476 is for other City funds. All transfers and appropriations are based on existing funds, reimbursements or revenues. There is an estimated annual impact of $312,886 due to operations and maintenance costs as a result of these recommendations (Attachment No. 5).
The CAO further reports in the September 29, 2014 Addendum report that the retrofit work is being funded by Municipal Improvement Corporation of Los Angeles funds under the Quality Energy Conservation Bonds program. There is no additional General Fund impact for operation and maintenance since this is an existing facility.
Community Impact Statement : None submitted.
ITEM NO. (13) 14-0251 MOTION (BUSCAINO - ENGLANDER) relative to amending prior Council action of June 18, 2014 regarding the surplus donation of 20 parking meters to the City of Lompoc.
Recommendation for Council action:
AMEND prior Council action of June 18, 2014 to change the recipient of the donation to the City of Promise Homeless Shelter, located in Lompoc and operated by the New Life Christian Center. The donation is authorized subject to the requirement that services supported by this surplus equipment be open to the entire community regardless of a person's spiritual beliefs and/or religious affiliation.
Items Called Special
Public Testimony of Non-agenda Items Within Jurisdiction of Council Wednesday - October 8, 2014 - PAGE 8 Motions for Posting and Referral
Council Members' Requests for Excuse from Attendance at Council Meetings Closed Session ITEM NO. (14) 14-1264 The City Council shall recess to Closed Session, pursuant to Government Code Section 54956.9(d)(1), to confer with its legal counsel relative to the case entitled Matthew Dowd, et al. v. City of Los Angeles , United States District Court Case No. CV09-06731 SS. (This case arises out of constitutional challenges to the adoption and enforcement of a provision of the Los Angeles Municipal Code regulating vending on Venice Beach and enforcement of the City Council’s enforcement of its Rules of Decorum.)
(Budget and Finance Committee considered the above matter in Closed Session on September 29, 2014)
ITEM NO. (15) 14-1259 The City Council shall recess to Closed Session, pursuant to Government Code Section 54956.9(d)(1), to confer with its legal counsel relative to the case entitled Naranjibhai Patel, et al. v. City of Los Angeles , United States District Court Case No. CV05-01571. (This case arises out of constitutional challenges to Los Angeles Municipal Code Section 41.49.)
(Budget and Finance Committee considered the above matter in Closed Session on September 29, 2014)
ITEM NO. (16) 14-1273 The City Council shall recess to Closed Session, pursuant to Government Code Section 54956.9(d)(1), to confer with its legal counsel relative to the case entitled Leonard Avila v. Los Angeles Police Department , United States District Court Case No. CV11-01326 SJO (FMOx). (This is a police employment case against the Los Angeles Police Department and the City of Los Angeles regarding Fair Labor Standards Act [FLSA] retaliation claims.)
(Budget and Finance Committee considered the above matter in Closed Session on September 29, 2014)
ITEM NO. (17) 12-0014-S23 The City Council shall recess to Closed Session, pursuant to Government Code Section 54956.9(d)(1), to confer with its legal counsel relative to the case entitled Independent Living Center of Southern California v. City of Los Angeles, et al. , United States District Court Case No. CV12-0551. (This is a litigation case against the City of Los Angeles concerning the Americans with Disabilities Act compliance matters relating to the CRA/LA, a Designated Local Authority and Successor for the former Community Redevelopment Agency of the City of Los Angeles.)
(Budget and Finance Committee considered the above matter in Closed Session on September 29, 2014)
Adjourning Motions
Council Adjournment
EXHAUSTION OF ADMINISTRATIVE REMEDIES - If you challenge a City action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at or prior to, the public hearing. Any written correspondence delivered to the City Clerk before the City Council's final action on a matter will become a part of the administrative record.
CODE OF CIVIL PROCEDURE SECTION 1094.5 - If a Council action is subject to judicial challenge pursuant to Code of Civil Procedure Section 1094.5, be advised that the time to file a lawsuit challenging a final action by the City Council is limited by Code of Civil Procedure Section 1094.6 which provides that the lawsuit must be filed no later than the 90th day following the date on which the Council's action becomes final.
Wednesday - October 8, 2014 - PAGE 9 Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerk's Office at 200 North Spring Street, City Hall, Room 395, during normal business hours.
Wednesday - October 8, 2014 - PAGE 10 Council File Number 13 -1562 -S1 Item: (2) COMMUNICATIONS FROM THE BOARD OF WATER AND POWER COMMISSIONERS and CITY ADMINISTRATIVE OFFICER, ORDINANCE FIRST CONSIDERATION and RESOLUTION OF NECESSITY relative to authorization to commence eminent domain proceedings to acquire 44 parcels of real property in the vicinity northeast of Mojave and south of the Barren Ridge Switching Station in Kern County, California.
Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:
1. CONCUR with the Board of Water and Power Commissioners' (Board) September 16, 2014 action (Resolution No. 15-047) authorizing the commencement of eminent domain proceedings to acquire 44 parcels of real property in the vicinity northeast of Mojave and south of the Barren Ridge Switching Station in Kern County, California as described in the September 18, 2014 Board report, attached to the Council file.
2. ADOPT the accompanying RESOLUTION OF NECESSITY as incorporated in Resolution 15-047, attached to the Council file, authorizing the Los Angeles Department of Water and Power (LADWP) to exercise eminent domain for the acquisition of land necessary for the Barren Ridge Renewable Transmission Project located in Kern County, California.
3. PRESENT and ADOPT the accompanying ORDINANCE finding that the public interest and necessity require the acquisition by eminent domain of those certain real properties located in the vicinity northeast of Mojave and south of the Barren Ridge Switching Station in Kern County, California and legally described in Attachment A, attached to the Council file, for the Barren Ridge Renewables Transmission Project.
Fiscal Impact Statement : The City Administrative Officer reports that approval of Resolution 15-047 authorizes a process to legally acquire certain parcels of land; however, it does not result in an additional fiscal impact. Funding of up to $22 million from the Power Revenue Fund was previously approved for land acquisition and associated costs, by ordinance, under a separate request by the LADWP Board of Commissions (Resolution No. 14-098) and authorized by the Mayor and City Council (Council File No. 13- 1562). The appraised value of the parcels to be acquired through this proposed process totals approximately $233,975. The proposed resolution complies with the LADWP's adopted Financial Policies. There is no impact to the City's General Fund.
(Energy and Environment Committee waived consideration of the above matter)
(10 VOTES REQUIRED)
Wednesday - October 8, 2014 - PAGE 11 Wednesday - October 8, 2014 - PAGE 12 Wednesday - October 8, 2014 - PAGE 13 Wednesday - October 8, 2014 - PAGE 14 Wednesday - October 8, 2014 - PAGE 15 LA Los Angeles w Department of Water & Power
Commission ERIC GARCETTI MEL LEVINE,President MARCIE L. EDWARDS Mayor WILLIAM W. FUNDERBURK JR., Vice President General Manager JILL BANKS BARAD MICHAEL F. FLEMING CHRISTINA E. NOONAN BARBARA E. MOSCHOS, Secretary September 18, 2014
The Honorable City Council City of Los Angeles Room 395, City Hall Los Angeles, California 90012
Honorable Members:
Subject: Barren Ridge Renewable Transmission Project Public Hearing and Adoption of Resolution of Necessity Authorizing Commencement of Eminent Domain Proceedings to Acquire 44 parcels of Real Property in the Vicinity Northeast of Mojave and South of the Barren Ridge Switching Station in Kern County, California
Pursuant to Charter Section 675(d)(1), enclosed for approval by your Honorable Body is Resolution No. 015 047, adopted by the Board of Water and Power Commissioners on September 16, 2014, approved as to form and legality by the City Attorney, which authorizes Barren Ridge Renewable Transmission Project Public Hearing and Adoption of Resolution of Necessity Authorizing Commencement of Eminent Domain Proceedings to Acquire 44 parcels of Real Property in the Vicinity Northeast of Mojave and South of the Barren Ridge Switching Station in Kern County, California.
If additional information is required, please contact Ms. Winifred Yancy, Director of Intergovernmental Affairs and Community Relations, at (213) 367-0025.
Sincerely,
Barbara E. Moschos Board Secretary BEM:oja Enclosures: LADWP Resolution Board Letter Exhibit A: Legal Descriptions
Los Angeles Aqueduct Centennial Celebrating 100 Years of Water 1913-2013 111 N. Hope Street, Los Angeles, California 90012-2607 Mailing address: Box 51111, Los Angeles, CA 90051-5700 Telephone:(213) 367-4211 www.LADWP.com
Wednesday - October 8, 2014 - PAGE 16 c/enc: Mayor Eric Garcetti Councilmember Felipe Fuentes, Chair, Energy and the Environment Committee Gerry F. Miller, Chief Legislative Analyst Miguel A. Santana, City Administrative Officer Rafael Prieto, Legislative Analyst, CLA William R. Koenig, Chief Administrative Analyst Winifred Yancy
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Wednesday - October 8, 2014 - PAGE 17 Resolution No. 015 0, 7
WHEREAS, the Los Angeles Department of Water and Power(LADWP) is obligated to provide reliable electricity service to its customers in the City of Los Angeles and other service areas; and
WHEREAS, the California Renewable Energy Resources Act(SB 2[1X]) and its implementing regulations set Renewables Portfolio Standard (RPS)goals for procurement of electricity from renewable resources and require the LADWP to attain a minimum of 25 percent RPS by 2016 and 33 percent RPS by 2020; and
WHEREAS, the Board of Water and Power Commissioners (Board) adopted its revised RPS Policy and Enforcement Program in December 2013, to implement the RPS requirements; and
WHEREAS, the Barren Ridge Renewables Transmission Project(BRRTP) consists of the new construction of high voltage transmission lines from the Barren Ridge Switching Station (BRSS)(north of Mojave, CA)to the Rinaldi Substation and continuing from the Castaic Power Plant to the Haskell Switching Station, and will bring electricity generated by renewable energy resources into the Los Angeles Basin; and
WHEREAS, the BRRTP is intended to access renewable energy sources in the Tehachapi Mountains and Mojave Desert Areas of Southern California and will be crucial and necessary for meeting the City of Los Angeles' RPS Requirements; and
WHEREAS, the Board, on September 18, 2012, certified a joint Environmental Impact Statement/Environmental Impact Report (EIS/EIR)for the BRRTP and adopted a Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Plan for the BRRTP in accordance with the California Environmental Quality Act(CEQA); and approved the BRRTP, Alternative 2; and
WHEREAS, Notices of this Public Hearing informing the owners of the Properties subject to acquisition described in Exhibit A and depicted in Exhibit B (both attached hereto and incorporated herein) of the Board's intent to adopt this Resolution and their right to be heard were mailed to the owners of the Properties not less than 15 days prior to the date of the hearing; and
WHEREAS, LADWP has commissioned separate appraisals of each of the Properties (Appraisals), has approved those appraisals and has determined that the full Fair Market Value(FMV) of each 'Property as established by said Appraisals constitutes "just compensation"for each respective Property; and
WHEREAS, representatives of LADWP have conveyed in writing to the owners of each of the Properties LADWP's offer to purchase the respective Properties for the full, FMV thereof as established by the corresponding Appraisals (the Offers); and
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Wednesday - October 8, 2014 - PAGE 18 WHEREAS, the Board, at a public hearing on this Resolution of Necessity, considered the previously-adopted EIS/EIR for the BRRTP, documentation regarding the Project and its relation to the Properties and the necessary real property interests to be acquired, reviewed the Board Letter and took oral and written testimony presented on the BRRTP.
NOW, THEREFORE, BE IT RESOLVED that this Board makes the following findings and determinations with respect to the BRRTP:
1. The LADWP is a proprietary department of the City of Los Angeles, a charter city and municipal corporation.
2. The foregoing recitals are true and correct and incorporated into this Resolution by this reference.
3. The property interests to be acquired consist of the fee interests in the properties described in Exhibit A and depicted on Exhibit B, attached hereto and incorporated by reference, (Properties) and any immovable fixtures and equipment (if any).
4. The Properties upon which the BRRTP will be constructed are to be acquired for public use, namely, for electric supply purposes and all uses necessary, incidental or convenient thereto, and for all public purposes pursuant to the authority conferred upon the LADWP to acquire property by eminent domain by Government Code § 37350.5, Code of Civil Procedure §§ 1240.010 and 1240.125; Public Utilities Code §§ 10001 and 10004, and Los Angeles City Charter Section 675(d)(1).
5. The acquisition of the Properties, which are located in the County of Kern are necessary for the development, construction, operation and maintenance of the BRRTP.
6. Pursuant to Sections 1240.510 and 1250.610 of the Code of Civil Procedure, to the extent that any of the Properties are already devoted to a public use, the use to which the Properties are to be put as part of the BRRTP is a more necessary public use than the use to which the Properties are already devoted, or, in the alternative, 'is a compatible public use which will not unreasonably interfere with or impair the continuance of the public use to which the Properties are already devoted.
7. The notice of intention to adopt this Resolution of Necessity was given by first class mail to each person whose property is to be acquired by eminent domain in accordance with Section 1245.235 of the Code of Civil Procedure and a hearing was conducted by the Board on the matters contained herein.
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Wednesday - October 8, 2014 - PAGE 19 BE IT FURTHER RESOLVED that the Board hereby declares that it has found and determined each of the following:
1. The environmental impacts of the BRRTP were evaluated in the previously- adopted EIS/EIR.
2. In accordance with CEQA Guidelines Section 15162, no subsequent or Supplemental EIR is required for the BRRTP and the Board has reviewed and considered the EIS/EIR before, and as part of the process of determining whether to acquire the Properties.
BE IT FURTHER RESOLVED that the Board hereby declares that it has found and determined each of the following:
1. The public interest and necessity require the BRRTP.
2. The BRRTP is planned or located in the manner that will be most compatible with the greatest public good and the least private injury.
3. The Properties described in the Resolution are necessary for the BRRTP.
4. That either the offer required by Section 7267.2 of the Government Code has been made to the owner or owners of record, or the offer has not been made because the owner cannot be located with reasonable diligence.
5. Remnants of some of the Properties being acquired may be left in such size, shape or condition to render them of little or no value and are, accordingly, acquired as uneconomic remnants as provided by Code of Civil Procedure § 1240.410.
BE IT FURTHER RESOLVED that the City Council is requested to approve this Resolution of Necessity and the exercise of eminent domain by LADWP in accordance with Charter Section 373(d)(2).
BE IT FURTHER RESOLVED that upon approval by City Council, the City Attorney is hereby authorized and directed to take all steps necessary to commence legal proceedings, in a court of competent jurisdiction, to acquire the Properties by eminent domain. Counsel is also authorized and directed to seek and obtain Orders for Prejudgment Possession of said Properties in accordance with the Eminent Domain law. Counsel may enter into stipulated Orders for Prejudgment Possession and/or Possession and Use Agreements, where such agreements constitute the functional equivalent of an Order for Prejudgment Possession. Counsel is further authorized to correct any errors or to make or agree to any non-material changes to the legal description of the real properties that are deemed necessary for the conduct of the condemnation action or other proceedings or transactions required to acquire the Properties. Counsel is further authorized, subject to the approval of LADWP's Board when required, to compromise and settle such eminent domain proceedings, if such negotiated settlement can be reached, and in that event, to take all necessary action to
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Wednesday - October 8, 2014 - PAGE 20 complete the acquisition, including entering into stipulations as to judgment and other matters, and to cause all such payments to be made.
BE IT FURTHER RESOLVED that the Chief Accounting Employee of the LADWP, upon proper certification and instruction from the Manager of Real Estate and City Attorney, is authorized and directed to draw demands on the Power Revenue Fund, in the amounts necessary to make deposits of just compensation with the California State Treasurer's Office in connection with the eminent domain proceedings and/or to pay the purchase prices for the acquisition of the Properties through negotiated settlements or court judgments.
I HEREBY CERTIFY that the foregoing is a full, true, and correct copy of the resolution adopted by the Board of Water and Power Commissioners of the City of Los Angeles at its meeting held SEP 1 6 7014 , and that the affirmative vote approving the Resolution exceeded two-thirds of all of the members of the Board.
Secretary
ATTACHMENTS:
Exhibit A: Legal Descriptions Exhibit B: Plat Maps
APPROVED AS TO FORM AND LEGALITY MICHAEL N. FEUER. CITY ATTORNEY AUG 6
BY TIMOTH J. C UNG DEPUTY CITUTTORNEY
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Wednesday - October 8, 2014 - PAGE 21 LA Los Angeles RESOLUTION NO. Department of Water & Power
BOARD LETTER APPROVAL
DAVID H. WIG RANDY S. H ARD Chief Administrat Officer Senior Assista General Ma ager Power System i\N MARCIE L. EDWARDS General Manager
DATE: September 15, 2014
SUBJECT: Barren Ridge Renewables Transmission Project(BRRTP) Public.Hearing and Adoption of Resolution of Necessity Authorizing Commencement of Eminent Domain Proceedings to Acquire 44 Parcels of Real Property in the Vicinity Northeast of Mojave and South of the Barren Ridge Switching Station (BRSS) in Kern County, California
SUMMARY
The public hearing and adoption of the attached proposed Resolution of Necessity will authorize the Los Angeles Department of Water and Power(LADWP) to acquire by eminent domain 44 parcels of real property (Properties) in the vicinity northeast of Mojave and south of the BRSS in Kern County, California for the BRRTP. BRRTP is the construction of new high voltage transmission lines from the BRSS (north of Mojave, California) to the Rinaldi Substation and continuing from the Castaic Power Plant to the Haskell Switching Station. The BRRTP will provide access to clean, renewable energy resources in the Tehachapi Mountains and Mojave Desert areas of Southern California and is crucial for meeting the City of Los Angeles'(City of LA) Renewable Portfolio Standard (RPS).
LADWP presented offers to the owners of the Properties beginning in June 2014, but has not been able to reach negotiated purchases of the Properties. LADWP staff recommends proceeding with acquisition through eminent domain (the power to acquire private property for public purposes) because the Properties are necessary for the construction of the BRRTP. If the Board of Water and Power Commissioners (Board) adopts the proposed Resolution, LADWP will continue to negotiate voluntary purchases. The attached Resolution of Necessity documents the findings that are required to authorize the initiation of eminent domain.
Wednesday - October 8, 2014 - PAGE 22 LADWP's acquisition agents have made numerous contacts with all but 13 of the parcel owners. Efforts to locate these 13 parcel owners have been made without success. By statute, each parcel owner may obtain an appraisal at LADWP's expense (up to $5,000). LADWP has also offered parcel owners a Document Acceleration Payment to expedite execution of the purchase and sale agreement. The Properties are vacant and do not contain any buildings or occupied structures.
City Council approval is required by Charter Section 675(d)(1).
RECOMMENDATION
It is recommended that the Board:
1. Hold a public hearing on the proposed Resolution of Necessity. 2. Consider and find the Final Environmental Impact Report (EIR)for the BRRTP certified on September 18, 2012, along with the adopted mitigation measures provides adequate environmental review of the BRRTP pursuant to the California Environmental Quality Act(CEQA). 3. Adopt the Resolution of Necessity making findings and authorizing the commencement of eminent domain actions to acquire the Properties for the BRRTP. 4. Request that the City Council approve the Resolution of Necessity and authorize the exercise of eminent domain to acquire the Properties.
ALTERNATIVES CONSIDERED
As required by law, LADWP made written offers to the owners of record of the Properties in amounts not less than the appraised fair market values. LADWP retained acquisition agents and has been successful in reaching voluntary agreements with 78 of the 122 owners of the parcels in the segment from BRSS to Aqueduct City. To date, however, LADWP has not been able to reach agreements with the owners of the Properties. LADWP and its agents will continue to negotiate voluntary purchases of the Properties, but if we are unable to reach agreements with the owners, LADWP should initiate the eminent domain process to acquire the Properties to complete the BRRTP as approved and on budget and on schedule.
FINANCIAL INFORMATION
Funding for the acquisition of all the properties necessary for the BRRTP, including legal and transaction costs, is budgeted for $22 Million.
BACKGROUND
The BRRTP is essential for meeting LADWP's RPS goal of achieving a renewable energy mandate of 33 percent by the year 2020. The BRRTP will deliver power generated by wind and solar resources from the Tehachapi Mountains, Mojave Desert, and Owens Valley to the Los Angeles Basin.
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Wednesday - October 8, 2014 - PAGE 23 The Project would be located in Los Angeles and Kern Counties, and would consist of: expanding the existing BRSS; constructing a new switching station in Haskell Canyon; constructing 61 miles of a new 230 kilovolt (kV) double-circuit transmission line from the BRSS to Haskell Canyon; reconductoring 76 miles of the existing Barren Ridge — Rinaldi (BR-RIN) 230 kV transmission line with larger-capacity conductors between the BRSS and the Rinaldi Substation; and adding 12 miles of a new 230 kV circuit from Haskell Canyon to the Castaic Power Plant. LADWP must acquire the Properties for the construction of the BRRTP as they are located directly in the alignment of the approved BRRTP. The properties addressed in this proposed Board action comprise the first segment of the BRSS with additional proposed eminent domain. Board actions anticipated.
Eminent Domain Process
The City of LA, acting by and through its LADWP, may acquire property by eminent domain for public use and electric supply purposes, both within and outside of its jurisdictional boundaries, in accordance with California Government Code Section 37350.5, Code of Civil Procedure Sections 1240.010 and 1240.125; Public Utilities Code Sections 10001 and 10004, and Los Angeles City Charter Section 675.
As required by Government Code Section 7267.2, written offers, based upon the approved appraisals, were presented to the owners of record of the Properties. While LADWP,through its acquisition consultants, has continued to negotiate with the owners to reach voluntary purchases, to date, LADWP has not been able to reach negotiated agreements with the owners of the Properties. Thus, the exercise of eminent domain would be necessary to acquire the Properties needed for the BRRTP in a timely manner to meet LADWP's RPS mandates.
In accordance with California Eminent Domain Law, LADWP mailed notices of this hearing to the owners of the Properties informing them of their right to appear and to be heard on the following issues:
1. Whether the public interest and necessity require the BRRTP. 2. Whether the BRRTP is planned or located in the manner that will be most compatible with the greatest public good and the least private injury. 3. Whether the subject parcel(s) is/are necessary for the BRRTP. 4. Whether either the offer(s) required by Section 7267.2 of the Government Code has/have been made to the owner or owners of record, or the offer(s) has/have not been made because the owner(s) cannot be located with reasonable diligence. 5. Whether the requisite environmental review of the BRRTP has been completed consistent with CEQA.
After the Board has held the public hearing, the Board must consider the certified Final EIR and decide whether to adopt the proposed Resolution of Necessity to acquire the Properties by eminent domain. In order to adopt the Resolution of Necessity, the Board must consider the testimony and evidence (including the information set forth in this
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Wednesday - October 8, 2014 - PAGE 24 Board Letter), and by a vote of two-thirds of its governing body, find and determine that the factors listed in items 1 through 5 above exist. Adoption of the Resolution of Necessity by the Board and approval by City Council will authorize LADWP's legal counsel to pursue legal action to acquire the Properties by eminent domain including seeking prejudgment possession of the Properties through a court order.
1. The Public Interest and Necessity Require the BRRTP
The BRRTP will be located in Los Angeles and Kern Counties, and will consist of: expanding the existing BRSS; constructing a new switching station in Haskell Canyon; constructing 61 miles of a new 230 kV double-circuit transmission line from the BRSS to Haskell Canyon; reconductoring 76 miles of the existing Barren Ridge Rinaldi (BR-RIN) 230 kV transmission line with larger-capacity conductors between the BRSS and the Rinaldi Substation; and adding 12 miles of a new 230 kV circuit from Haskell Canyon to the Castaic Power Plant.
LADWP's purpose and need for the BRRTP along with the objectives are to:
• Allow interconnection and expansion of LADWP's renewable energy in the Tehachapi Mountains and Mojave Desert areas. • Reduce the environmental impacts associated with greenhouse gas emissions and create a more sustainable environment. • Assist LADWP in meeting RPS goals. • Meet LADWP's future electrical energy demands. • Increase LADWP's system reliability and flexibility in the utilization of renewable energy sources. • Enable the delivery of renewable energy.
2. The BRRTP is Planned or Located in the Manner That Will be Most Compatible With the Greatest Public Good and the Least Private Injury
The LADWP, United States Forest Service, and United States Bureau of Land Management prepared a joint Environmental Impact Statement (EIS)/EIR for the proposed BRRTP. Public participation was included in the environmental review process. The Draft EIS/EIR was released for a 60-day public comment period beginning on August 26, 2011, and ending on October 25, 2011. The document was made available online, and at numerous repository sites. The EIR included an analysis of three route alternatives for the BRRTP plus the "no action alternative."
The Final EIS/EIR (Released August 2012) contains comments and written responses to comments on the Draft EIS/EIR. LADWP certified the Final EIR and approved the BRRTP selecting and adopting the Alternative 2 route at its Board meeting on September 18, 2012. The Alternative 2 route, which includes the Properties, was selected because it contains all project components within a single utility corridor within the Angeles National Forest(ANF) and the immediate surrounding communities, which would limit the impact footprint of the BRRTP.
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Wednesday - October 8, 2014 - PAGE 25 Alternative 2 consolidates all project components next to existing LADWP facilities, minimizing ongoing operation and maintenance impacts. The consolidation of facilities will allow LADWP to utilize the existing network of access roads, resulting in the least ground disturbing impacts among the action alternatives. Alternative 2, as adopted, is the shortest transmission line alignment at 61 miles long. Alternative 2 consists of three Segments: A, B, and G. Segment A is from the BRSS to north of Mojave and is common to the 3 Action Alternatives. Segment B is from Mojave to Lancaster, and Segment G is from Lancaster through Elizabeth Lake and Green Valley to the proposed Haskell Canyon Switching Station.
3. The Properties Described in the Resolution are Necessary for the BRRTP
The Properties are essential parts of the approximately 200-foot wide corridor of the adopted Alternative 2 project route that runs 61 miles from BRSS to the Haskell Canyon Switching Station, and parallels the LADWP's existing BR-RIN 230 kV and 500 kV Pacific Direct Current Intertie Transmission Lines for most of its existing alignment. The corridor provides spacing needed to maintain and protect three contiguous and parallel high voltage transmission line circuits.
The transmission lines include towers, conductors and ancillary equipment. Erection and maintenance of towers will require subsurface foundations and grounding devices. Ground, surface and overhead access will be necessary to construct, operate and maintain the towers, conductors and ancillary equipment. The LADWP historically has acquired the fee interest for transmission lines. Fee acquisition (purchase) of these Properties is necessary to provide continuous, uninterrupted legal access to ensure safe and reliable operation of the transmission lines. Purchase of these properties also ensures the control and preservation of the rights necessary for future maintenance and continuous operation of our facilities without interference by any outside parties. On occasion, access may be granted to adjacent owners and public entities to ensure that vehicle access and traffic circulation can be maintained.
4. The Offers Required by Section 7267.2 of the Government Code Were Made to the Owners of Record, or the Offers Have not Been Made to Certain Owners Because the Owners Could not be Located With Reasonable Diligence
LADWP staff has taken the following required actions for each of the Properties:
• Obtained appraisals from California Licensed General Real Estate Appraisers to determine the Fair Market Value (FMV)of the Properties. • Reviewed and approved the appraisals to establish the just compensation (purchase) offer amount. • Determined the owners of the Properties and their interests therein by examining title reports for the Properties and searching County Assessor's Records, when needed.
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Wednesday - October 8, 2014 - PAGE 26 • Sent written offers via certified mail, accompanied by an appraisal summary statement, to the owners of record of the Properties for the full amount of just compensation, which was not less than the approved appraised value.
The Properties (identified by assessor's parcel numbers), the record owners (as indicated by title reports obtained from Chicago Title Company), the approximate locations, the nature of the property interests sought, the amount offered for the Property(ies) and the date the offers were mailed are listed in the following Summary Table:
Assessor's Size Parcel (in Approximate Property Offer Date of Number Owner acres) Location Amount Offer 469-290-04-00 Kashani, M. 1.302 Barren-Ridge Substation $1,400 6/13/2014 Davood Golshrazian and 2 Miles South of Barren 461-150-10-00 10.451 $18,800 6/13/2014 Mojave Investments, LLC. Ridge Substation 4 Miles South of Barren 225-323-13-00 Hancock Company, Inc. 0.972 $1,000 6/13/2014 Ridge Substation 4 Miles South of Barren 225-321-01-00 Juliette Sheinkopf 6.735 $6,700 6/13/2014 Ridge Substation 4/1 2 Miles South of Barren 225-321-03-00 Carol E. Brown and Eric Siss 7.995 $8,000 6/13/2014 Ridge Substation 4/ 12 Miles South of Barren 225-321-21-00 Rafi Abrishami 4.005 $4,400 6/13/2014 Ridge Substation Gateway Financial Services 4/ 12 Miles South of Barren 225-321-22-00 0.875 $1,000 6/13/2014 Corp Ridge Substation 225-343-03-00 5 Miles South of Barren 225-343-07-00 Loh Investments L.P. 4.371 $3,500 6/13/2014 Ridge Substation 225-343-08-00 Scott W. Pearson and Marie 3 Miles North of Randsburg 225-402-03-00 0.692 $400 6/13/2014 I. Pearson Cutoff Road United States Land 3 Miles North of Randsburg 225-401-06-00 1.66 $1,300 6/13/2014 Development Corp Cutoff Road David G. Riley and Lennavee 2/ 12 Miles North of 225-401-18-01 2.015 $1,600 6/13/2014 Riley Randsburg Cutoff Road 2/ 12Miles North of 225-401-32-01 Frank Bezzina Jr. 0.513 $300 6/13/2014 Randsburg Cutoff Road 2 Miles North of Randsburg 225-361-10-00 Sherry Saleh 6.33 $6,300 6/13/2014 Cutoff Road 2 Miles North of Randsburg 225-361-11-00 Loh Investments L.P. 6.277 $1,100 6/13/2014 Cutoff Road 1/ 12 Miles North of 225-362-05-00 Discountland Inc. 7.865 $5,500 6/13/2014 Randsburg Cutoff Road on Ayoub Haddad, Caroline Eid 1/ 12 Miles North of 225-362-03-00 7.879 $7,900 6/13/2014 Haddad and Joy Eid Haddad Randsburg Cutoff Road
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Wednesday - October 8, 2014 - PAGE 27 --_,Benjamin N. Ramos, Aurora I 1 Mile North of Randsburg 5-284-02-00 L. Ramos, Felix Y. Yadao, Jr. 3.126 $3,400 6/13/2014 Cutoff Road and Cel Yadao 225-033-49-00 Jebrail H. Issa and Jamileh J. 1 Mile North of Randsburg 225-033-50-00 5.087 $5,600 6/13/2014 Issa Cutoff Road 225-033-51-00 /34 Mile North of Randsburg 225-033-37-00 Hyun Jin Jung 0.079 $100 6/13/2014 Cutoff Road 225-033-36-00 /2 Mile North of Randsburg Joel Berman 5.254 $5,800 6/13/2014 225-033-39-00 Cutoff Road Abdulla Hamad, Jassim Al- /12 Mile North of Randsburg 225-033-35-00 4.025 $4,400 6/13/2014 Thani Cutoff Road Ronald Blumer and Lucille IA Mile North of Randsburg 225-033-20-00 5.213 $10,400 6/13/2014 Pash Cutoff Road Southerly Adjacent to 225-101-03-00 Charles H. Glickman 1.077 $2,200 6/13/2014 Randsburg Cutoff Road Marco A. Banos and Oliva L. 247-031-16-00 0.172 Aqueduct City $9,900 6/4/2014 Luvia Exeter Fiduciary Services, 247-031-10-00 0.057 Aqueduct City $3,300 6/4/2014 LLC 247-032-21-00 Maria E. Salazar 0.172 Aqueduct City $9,900 6/4/2014 247-033-32-00 Farsi Jewelry, Inc. 0.057 Aqueduct City $3,300 6/4/2014 Paul U. and Nedra D. '47-033-22-00 0.23 Aqueduct City $13,200 6/4/2014 Johnson i-033-28-00 Alexander W. Frazier 0.172 Aqueduct City $9,900 6/4/2014 Florina Cabrera Gutierrez, Maria del Socorro Rodriguez 247-061-07-00 0.287 Aqueduct City $16,500 6/4/2014 and Elizabeth Rodriguez Cabrera 247-121-09-00 Otto Leonard Bunte 0.087 Aqueduct City $5,000 6/4/2014 247-122-22-00 Alejandro Quezada 0.172 Aqueduct City $9,900 6/4/2014 Rosetta Patterson, Warner 247-122-28-00 0.172 Aqueduct City $9,900 6/4/2014 and Thelma Johnson Rosetta Patterson, Warner 247-122-15-00 0.23 Aqueduct City $13,200 6/4/2014 and Thelma Johnson The Simon Family Trust; Mary Ann Johnson, 247-125-01-00 0.057 Aqueduct City $3,300 6/4/2014 Elizabeth Massaad, and Michelle Bohlen 247-136-20-00 Gerardo Saenz 0.172 Aqueduct City $9,900 6/4/2014 247-136-22-00 Akop and Lyusya Tataryn 0.115 Aqueduct City $9,075 6/4/2014 247-135-26-00 Egodeleva Estrella-Guerrero 0.057 Aqueduct City $3,300 6/4/2014 247-206-14-00 Savana Sondra Garabet 0.057 Aqueduct City $3,300 6/4/2014
LADWP's acquisition consultants have attempted to, and will continue to engage in negotiations with the owners to acquire the Properties by voluntary purchase.
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Wednesday - October 8, 2014 - PAGE 28 However, because the Properties have not yet been acquired by LADWP, the information in the Summary Table is provided to assist the Board in supporting the findings that must be made to authorize acquisition of the Properties by eminent domain:
The City Administrative Officer Report has been requested. It is anticipated before the Board meeting.
ENVIRONMENTAL DETERMINATION
In accordance with CEQA and the National Environmental Policy Act, LADWP, along with its federal co-lead agencies, the United States Forest Service and United States Bureau of Land Management, prepared a joint EIS/EIR to disclose and evaluate the potential environmental impact associated with the construction and operation of the BRRTP. The Board certified the EIR, adopted mitigation measures and approved the Project on September 18, 2012.
A copy of the EIS/EIR is available for review on the LADWP public website: https://www.ladwp.com/ladwp/faces/ladwp/aboutus/a-power/a-p-proiects/a-p-p- barrenridaerenewabletransmission? adf.ctrl- state=10c9zuzs81 4& afrLoop=552282907564205
CITY ATTORNEY
The Office of the City Attorney reviewed and approved the Resolution as to form and legality.
ATTACHMENTS
• Resolution (Including Legal Descriptions and Maps of the Properties)
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Recommendations for Council action:
1. DETERMINE that the issuance of a liquor license at Amante Pizza and Pasta restaurant located at 121-123-125 East 9th Street, Los Angeles, 90015, will serve the Public Convenience or Necessity and will not tend to create a law enforcement problem.
2. GRANT the Application for Determination of Public Convenience or Necessity for the sale of alcoholic beverages for on- and off-site consumption at 121-123-125 East 9th Street.
3. INSTRUCT the City Clerk to transmit this determination to the State Department of Alcoholic Beverage Control as the required findings under Business and Professions Code Section 23958.4.
Applicant: Maximus 333, LLC
TIME LIMIT FILE – DECEMBER 15, 2014
(LAST DAY FOR COUNCIL ACTION - DECEMBER 12, 2014)
Wednesday - October 8, 2014 - PAGE 91 Page 1 of 6
APPLICATION FOR DETERMINATION OF "PUBLIC CONVENIENCE OR NECESSITY" ALCOHOL SALES
Pursuant to Section 23958 and 23858.4 California Business and Professions Code
TO BE SUBMITTED TO CITY CLERK'S OFFICE ROOM 395, CITY HALL
COUNCIL FILE NO.
BACKGROUND INFORMATION TIME LIMIT FILE:
As part of the application, the applicant must submit the names and addresses of property owners of all property adjacent (including across the street/alley) to the subject property on gummed labels. Applicant must also submit the following information: 1)notarized signature, 2)a site plan prepared by a map maker(see Planning Department for map maker's list), 3) one 4- by 6-inch picture of the property from each side of the site, and 4) a copy of all previous building permits for the site (Room 400, 201 North Figueroa Street). When you meet with ABC to get the crime and license concentration information for your site, you must bring back the ABC information (on the ABC form) to the City Clerk.
2-2A a— VOI-V C\ Project Name MU G W"X- ( `b7) C- °)(\ NA(*rTL C Address k2\ _,(:(1-tr\ St- GL Opt(7
Type of Business
Applicant r\r\c'41 virk‘i,.S a13_ LL-C Name CA eyti2_ kt,,ou Address
Phone Number/Fax Number
Property Owner e-A be cc) ra Name virN Address( \ _06 Phone Nuniber/Fax'Number
Representative Name
Address
Phone Number/Fax Number
A. PROJECT DETAILS
THE FOLLOWING QUESTIONS ARE TO BE ANSWERED BY ALL APPLICANTS:
1. the City previously approved a conditional use permit for alcoholic beverage sales at this site? Yes 2( No If Yes, what is the City case number(s) "2.A anbc-;?/(46..A.4.$) /434.0
2. Have you recently filed for a new conditional use permit? Yes No. . If Yes, provide the City case number(s)
Wednesday - October 8, 2014 - PAGE 92 Page 2 of 6
3. Has a previous ABC license been issued? Yes r No . If Yes, when and what type of license A - ."1-0
4. Type of Alcohol Sales Requested (on- or off-site, beer and wine, full alcohol, etc.): 4k - -2_0
5. Size of Business
6. % of floor space devoted to alcoholic beverages 20/14
7. Hours of Operation:
a. What are the proposed hours of operation and which days of the week will the establishment be open? b4e,! „A ()6,4 — 1 4"ty.
b. What are the proposed hours of alcohol sales?
8. Parking:
a. Is parking available on the site? (If so, how many spaces?) c',6,5, ;,..•
b. If spaces are not available on the site, have arrangements been made for off-site parking by lease or covenant?
c. Where?
d. How many off-site spaces?
9. Has the owner or lessee of the subject property been suspended from the sale of alcoholic beverages on the subject property or fined by the Alcoholic Beverage Control Department(ABC) in the last 365 days and if so,for what reasons? Provide ABC case number and a copy of final ABC action.
10. Will video game machines or pool or billiard tables be available for use on the subject property and if so, how many? t•-1772:3
11. Will you have signs visible on the outside whiCh advertise the availability of alcohol?
12. How many employees will you have on the site at any given time? I
13. Will all employees who sell alcohol attend the local State ABC training class on how to properly sell alcohol? e5
14. What security measures will be taken including:
Posting of rules and regulations on the premises to prevent such problems as gambling, loitering, theft, vandalism and truancy.
b. Will security guards be provided and if so, when and how many?
Wednesday - October 8, 2014 - PAGE 93 Page 3 of 6
15. Will there be minimum age requirements for patrons? If so, how will this be enforced?
Tjr_3..w) L\ CAA,k
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16. Are there any other alcoholic beverage cutlets within a 600-foot radius of the site? Provide names and address of such business KO type of business.
17. Are there any schools (public or private and including nursery schools) churches or parks within 1,000 feet of your proposed business? Where? (Give Address)
18. Will the exterior of the site be fenced and locked when not in use?
19. Will the exterior of the site be illuminated with security lighting bright enough to see patrons from the street? e
B. THE FOLLOWING QUESTIONS ARE TO BE ANSWERED WHERE ONLY THE OFF-SITE SALE OF ALCOHOLIC BEVERAGES IS SOUGHT:
1. Will the gross sale of alcohol exceed the gross sale of food items on a quarterly basis? N
2. Will cups, glasses or other similar containers be sold which might be used for the consumption of liquor on the premises?
3. Will beer and wine coolers be sold in single cans or will wine be sold in containers less than 1 liter (750 ml)? kA
4. Will "fortified" wine (greater than 16% alcohol) be sold? Ote)
C. THE FOLLOWING QUESTIONS ARE TO BE ANSWERED WHERE ONLY THE ON-SITE SALE OF ALCOHOLIC BEVERAGES IS SOUGHT:
1. What is the occupancy load as determined by the Fire Department (number of patrons)? I -2's--
2. What is the proposed seating in all areas? I (4(. ,
3. Is there to be entertainment such as a piano bar, juke box, dancing, live entertainment, movies, etc.?(Specify?) 0-0
4. If a cocktail lounge is to be maintained incidental to a restaurant, the required floor plans must show details of the cocktail lounge and the separation between the dining and lounge facilities.
Wednesday - October 8, 2014 - PAGE 94 Page 4 of 6
5. Food Service
a. Will alcohol be sold without a food order? b. Will there be a kitchen on the site as defined in the Los Angeles Municipal Code?
6. Will discount alcoholic drinks or a "Happy Hour" be offered at any time? VES
Provide a copy of the proposed menu if food is to be served.
D. PUBLIC CONVENIENCE AND NECESSITY EVALUATION
The City of Los Angeles is very concerned if a new request to sell alcohol is subject to one of the conditions below. There is a strong likelihood that the City will deny your "public convenience or necessity" application if one of the above listed conditions apply to your site. (It is strongly suggested that you contact your Council Office and discuss your project. If the Council Office does not oppose your project, you should then check with your local area police vice unit as well as the Planning Department Public Counter at(213) 977-6083 for the determination of whether the proposed site is within a Specific Plan area, and the Community Redevelopment Agency(CRA) project staff at(213) 977-1682 or 977-1665, to determine if your site is in a CRA Project Area. If any of the five conditions listed below apply to your site, you should carefully consider if you want to file for a Public Convenience or Necessity finding.
1. The proposed site is in an area with a long-term level of undue concentration of alcoholic beverage outlets.
2. The geographic area is the target of special law enforcement activity, i.e., police task force is working on reducing vice in the area, or eliminating juvenile crime (such as cruising or graffiti) or gang activity.
3. The proposed site is in close proximity to sensitive uses, including schools, parks, churches, youth activities, homeless shelters, mental health or alcohol or drug treatment centers.
4. The geographic area has elevated levels of alcohol-related crimes, including but not limited to: public intoxication, driving under the influence, assault, vandalism, prostitution, drug violations, loitering.
5. The proposed site is located in a Specific Plan or Community Redevelopment Agency Project area which specifically includes a policy to control future alcoholic beverage sales.
E. If the project site is not subject to one of the above criteria, your project will be evaluated by the City Council with consideration given to the following possible benefits and detriments to the community:
1. Possible Benefits
Would the business:
a. Employ local residents (how many) b. Generate taxes (provide estimate) c. Provide unique goods and services (which ones) d. Result in an aesthetic upgrade to the neighborhood (in what exact way) e. Contribute to the long term economic development(how) f. Provide a beneficial cultural/entertainment outlet (specify)
Wednesday - October 8, 2014 - PAGE 95 Page 5 of 6
2. Possible Detrimental Impacts
Is the immediate area in which the license is sought subject to: (Check with your local Police Department area "Senior Lead Officer")
a. Excessive calls to the Police Department b. Police resources being already strained c. High rates of alcohoIism, homelessness, etc. d. Large "youth"(under 21) population
3. With regard to the operation of the proposed business explain:
a. The method of business operation: (large volume of alcohol to food sales, "late" hours (after midnight), high % unskilled (no ABC training class) staff, high % of underage (under 21) staff, etc.)
b. Would the business duplicate a nearby business already in existence?
c. Other non-alcohol sales business options available so alcohol does not have to be sold, e.g., more specialty products, broader range of items like fresh meats or fruits and vegetables, etc.
The City Council will evaluate these factors and make a decision on the overall merits of your request. Therefore, you should answer below as to why you believe any of these above listed beneficial or detrimental conditions apply to your project and provide any documented pro1 f to support your belief:** k\---(-tkrc liNR,e
Wednesday - October 8, 2014 - PAGE 96 Page 6 of 6
F. APPLICANT'S AFFIDAVIT
Under penalty of perjury the following declarations are made:
a. The undersigned is the owner or lessee if entire site is leased, or authorized agent of the owner with power of attorney or officers of a corporation (submit proof).
b. The information presented is true and correct to the best of my knowledge.
Applicant siOy:jatyr INA Date re of property owner if tenant lessee is filling application
* * * * * * * * * *
State of
County(‘Vt 0n q/eO D2 1 before (21 A it-2 Name of Notary Public personally appeared p/pi v Name(s) of Signer(s)
sonally known to me (or proved to me on the basis of satisfactory evidence)to be the person(s,rwhose name( is r ubscribed to the within instrument and ledged to me that he/she/they executed the same in is/ er heir authorized capacity(), and that b their signature(s) on the instrument the person(s), or the enti upon behalf of which the person(s) acted, execu ed the instrument.
WITNESS my hand and official seal. Npikinaratasit-,&. BARBARA A. KAPLAN '7 Commission # 2048378 :*c gra California z Notary Public - z1Lt;;;;:w.5.1„.c.isxgr.u.r.cp45.41•1 Los Angeles County LICA/C11-)(7. iC4-62 5, 2017 Signature of Notary Public My Comm. Expires Dec
* The Planning Department has a list of private map makers who will prepare the names and addresses for you. This list is available at the public counter, Room 300, Counter N, 201 North Figueroa Street or 6251 Van Nuys Boulevard, Van Nuys. Alternatively, you may obtain a list of such adjoining owners from the City Clerk's Office (Room 730, 201 North Figueroa Street) or from a title company and prepare the labels yourself.
** You may add additional pages to your response if needed. Please utilize numbering system of this form to assist in the review of the responses.
CP-7612 (10/22/01) PAWORDPROC\CPFORMS\CP7000\7612.wpd Wednesday - October 8, 2014 - PAGE 97 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California Los Angeles County of } Notary Public On cf before me, Barbara A. Kaplan, a Date inSPI Name and Tde 01.the Office( personally appeared ,- Name(s)01 sisnet(s)
who proved to me on the basis of ctory evidence to be the person(s) whose name( subscribed to the withi• strument and ackno to me that he/'- executed the 'r aiithorized • capa (ies), and that by.h nature(s) on the BARBARA A. KAPLAN instrument the person(s), or the entity upon behalf of Commission # 2048378 executed the instrument z ESS my hand and o cid /Signature Place Notary Seal Above Signature,ol OPTIONAL Though the inkmation below is not required by law, It may peva valuable to persons relying on the document and could prevent fraudulent removal and reattachment ofthis form to another document Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacliy(ies) Claimed by Signer(s) Signers Name: Signer's Name: 0 Individual •0 Individual 0 Corporate Officer — Title(s): 0 Corporate Officer —Title(s): 0 Partner —0 Limited 0 General 0 Partner — CI Limited 0 General RIGHTTHUT,ISPF-3INT RIGHTTHUMEPP.NT 0 Attorney in Fact OF SIGNER 0 Attorney in Fact OF SIGNER of thumb here CI Trustee Top of thiimb here CI Trustee Top 0 Guardian or Conservator 1:1 Guardian or Conservator Cl Other: CI Other. Signer Is Representing: Signer Is Reprmcnting: W.v.A./.a.r•S'AL-.Mii.te4W.4.424N.L.NW/AZ-Sv.re,a&v.11exv.:46W4i.V.AW/A-1 41.1:1K,LAK.P.N•Velvt-'l4s& 02007 Nabortal Notary Associagon.23SO De S040 Ave,PO. Box 2402.CI, ,1,CA 91313-2402.www/iagonaltiotaryarg iban 45907 Reordec Carroll-Rea 1-600-876-6827 Wednesday - October 8, 2014 - PAGE 98 Council File Number 14 -0600 -S243 Item: (4) PUBLIC SAFETY COMMITTEE REPORT relative to Los Angeles Police Department's (LAPD) Narcotics Analysis Laboratory Trust Fund (NALTF) Expenditure Plan No. 17. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. APPROVE the NALTF Expenditure Plan No. 17 for $424,800 and AUTHORIZE the LAPD to expend the funds according to the State of California and City policy. 2. AUTHORIZE the Controller to: a. Establish appropriation accounts within NALTF No. 863/70, as follows: Account Title Amount TBD Plan 17 Casework Overtime $120,000 TBD Plan 17 Toxicology Analyses 85,000 TBD Plan 17 Equipment 219,800 Total: $424,800 b. Increase appropriations as needed from Fund 863/70, Plan 17 Casework Overtime account, to LAPD Fund 100170, Account No. 001090 General Overtime, by an amount not to exceed $120,000. 3. AUTHORIZE the LAPD to prepare instructions for the Controller for any technical adjustments, subject to the approval of the City Administrative Officer (CAO); and, AUTHORIZE the Controller to implement the instructions. Fiscal Impact Statement : The CAO reports that this action will not impact the General Fund. Approval of the NALTF Expenditure Plan No. 17 authorizes the LAPD to spend up to $424,800 from the Fund. This action complies with City Financial Policies in that one-time revenue is used for one-time expenditures. Community Impact Statement : None submitted. Wednesday - October 8, 2014 - PAGE 99 REPORT FROM OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: September 26, 20 14 CAO File No. 0160-01450-0017 Council File No. 14-0600-5243 Council District ·- To: The Mayor and Council From: Miguel A. Santana, City Administrative Office~~ Reference: Board of Police Commissioners Transmittal dated July 15, 2014 Subject: NARCOTICS ANALYSIS LABORATORY TRUST FUND (NAL TF) EXPENDITURE PLAN N0.17 SUMMARY The Los Angeles Police Department (LAPD) requests approval of the Narcotics Analysis Laboratory Trust Fund (NAL TF) Expenditure Plan No. 17. This expenditure plan covers narcotics casework overtime and laboratory equipment totaling $424,800 to be funded in 2014-15. Funds are available and the items covered in the plan are considered eligible uses of the NALTF. Section 11372.5 of the California Health and Safety Code provides for the courts to collect a fee of $50 at the time of a controlled substance related conviction to reimburse law enforcement laboratories for costs incidental to analysis of controlled substances. The funds must be used to support the laboratories and historically the City has used these funds for LAPD staff overtime and training and the purchase of laboratory equipment for the LAPD Scientific Investigation Division (SID) personnel. Los Angeles Administrative Code Section 5.115.2 creates the NALTF and requires that the Mayor and Council approve an expenditure plan prior to the disbursement of the funds. Over the last five years, the Mayor and Council have authorized expenditures of approximately $1 .6 million from the NALTF. The Fund received $267,000 in fee revenue in 2013-14. The balance in the Fund as of June 30, 2014 was $1.23 million, of which approximately $500,000 is programmed for prior-approved plans and $424,800 will be programmed for Expenditure Plan No. 17. The remaining balance, along with revenue received in 2014-15 .and beyond, will be programmed into future Expenditure Plans. The LAPD proposes to use $120,000 in overtime for staff to complete narcotics casework, $85,000 to pay for toxicology analysis performed by the Los Angeles County Department of Coroner, and $219,800 for laboratory equipment and information technology hardware and software. Additional details are provided in the Board of Police Commissioners report dated July 15, 2014. Wednesday - October 8, 2014 - PAGE 100 CAO File No. PAGE 0160-01450-0017 2 RECOMMENDATIONS That the Council, subject to the approval of the Mayor: 1. Approve the Narcotics Laboratory Trust Fund (NAL TF) Expenditure Plan No. 17 for $424,800 and authorize the Los Angeles Police Department (LAPD) to expend the funds according to the State of California and City policy; 2. Authorize the Controller to: a. Establish appropriation accounts within NALTF No. 863, Department 70 as follows: Account No. Account Name Amount TBD Plan 17 Casework Overtime $120,000 TBD Plan 17 Toxicology Analyses 85,000 TBD Plan 17 Equipment 219,800 Total $424,800 b. Increase appropriations as needed from Fund 863/70, Plan 17 Casework Overtime account, to LAPD Fund 100170, Account No. 001090 General Overtime, by an amount not to exceed $120,000; and, 3. Authorize the LAP D to prepare Contra ller' s instructions for any tech nica I adjustments, subject to the approval of the City Administrative Officer, and authorize and instruct the Controller to implement the instructions. FISCAL IMPACT STATEMENT Approval of the Narcotics Laboratory Trust Fund Expenditure Plan No. 17 authorizes the Los Angeles Police Department to spend up to $424,800 from the Fund. There is no impact on the General Fund . Th is action complies with the City's Financial Policies in that one-time revenue is used for one-time expenditures. MAS:JCY:04150016 Attachment Wednesday - October 8, 2014 - PAGE 101 Council File Number 12 -0014 -S22 Item: (5) BUDGET AND FINANCE COMMITTEE REPORT relative to an increase in funding and contract amendment for an attorney conflicts panel contract. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. AUTHORIZE the City Administrative Officer (CAO), or designee, to execute a fourth contract amendment to Contract No. C-121063 with the law firm of Byrne & Nixon, and to encumber funds totaling $3,875,000 from the Attorney Conflicts Panel Fund No. 46T, Department 10, for a revised contract cumulative total of $6,325,000, subject to the review of the City Attorney. 2. AUTHORIZE the CAO, or designee, to make any technical adjustments needed to implement the intent of the Mayor and Council action; and, AUTHORIZE the Controller to implement those instructions. Fiscal Impact Statement : The CAO reports that the proposed contract amendment is in compliance with City Financial Policies. The recommendations in this report may have an impact on the General Fund. The proposed contract amendment, in combination with other Attorney Conflicts Panel contracts, may require additional funds for the ACP Fund No. 46T to fund the necessary expenses this fiscal year. The CAO will report on the Fund Balance in future Financial Status Reports. Community Impact Statement : None submitted. Wednesday - October 8, 2014 - PAGE 102 REPORT FROM OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: September 4, 2014 CAO File No. 0130-01756-1573 Council File No. 12-0014-S24 Council District: -- To: The City Council From: Miguel A. Santana, City Administrative Officer / Reference: Attorney Conflicts Panel Subject: REQUEST TO INCREASE FUNDING FOR ATTORNEY CONFLICTS PANEL CONTRACT WITH THE LAW FIRM OF BYRNE & NIXON FOR REPRESENTATION IN AMERICAN WITH DISABILITIES ACT COMPLIANCE MATTERS AS RELATED TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF LOS ANGELES (CRA/LA), A DESIGNATED LOCAL AUTHORITY SUMMARY The Office of the City Administrative Officer (CAO) requests authority to amend an existing legal services contract agreement under the Attorney Conflicts Panel (ACP) program with the law firm of Byrne & Nixon (B&N) to increase funding by an additional $3,875,000 for a revised contract cumulative total of $6,325,000. The proposed funding is based on the following: 1) incurred billing of $1,335,000; 2) projected funding needs of $1,340,000, as provided by B&N, for the period of September through December 2014; and, 3) an additional $1,200,000, as projected by the CAO, for funding needs from January through June 2015. The CAO projection is a forecast based upon an average of prior monthly costs of $200,000. The law firm of B&N was retained to represent the City of Los Angeles in four inter-related matters concerning alleged American with Disabilities Act (ADA) non-compliance violations at certain affordable housing units as to the former Community Redevelopment Agency of Los Angeles, now known as the CRA/LA, a Designated Local Authority and the Successor agency to the former Agency. The law firm of B&N was selected through a formal Request for Proposal process on the basis of specialized expertise and experience in complex business law and federal prosecution The four inter-related matters include an audit by the U.S. Department of Housing and Urban Development (HUD), a federal investigation by the U.S. Department of Justice (DOJ), and two civil lawsuits, Mei Ling v. City of Los Angeles, Case No. CV11-7774 and Independent Living Center of Southern California, et al. v. City of Los Angeles, et al. (ILCSC), Case No. CV12-0551. These are completely conflicted matters which preclude the City Attorney's Office from handling and involve complexities and circumstances, not, typical pf an Attorney Conflicts Panel case assignment, and with high liability exposure to the'City. Wednesday - October 8, 2014 - PAGE 103 CAO File No. PAGE 0130-01756-1573 2 The HUD audit and the DOJ federal investigation were initially prompted by allegations made in the Mei Ling law suit. In November 2012, motion arguments by B&N led to a favorable Court decision for the City and a dismissal of the Mei Ling case. The matter is currently being appealed by Mei Ling. The HUD and DOJ matters are currently engaged in ongoing discussions, negotiations and related measures for achieving a comprehensive resolution. The ILCSC litigation is a class action lawsuit and continues to be the most contentious and the most costly of the four assignments. A litigation status report will be provided under separate cover for "closed session" discussion. Lastly, the Attachment to this report provides further summary of the B&N contract, as follows: Table 1: Contract and Amendment history; Table 2: Contract Appropriations and Expenditures; and, Table 3: Proposed Allocation of the Funding Request of $3,875,000. The majority of the proposed funding is to be allocated to the ILCSC matter. RECOMMENDATIONS That the City Council, subject to the approval of the Mayor: 1. Authorize the City Administrative Officer, or its designee, to execute a fourth contract amendment to Contract No. C-121063 with the law firm of Byrne & Nixon, and to encumber funds totaling $3,875,000 from the Attorney Conflicts Panel Fund No. 46T, Department 10, for a revised contract cumulative total of $6,325,000, subject to the review of the City Attorney; 2. Authorize the City Administrative Officer, or its designee, to make any technical adjustments needed to implement the intent of the Mayor and Council action, and authorize the Controller to implement those instructions. FISCAL IMPACT STATEMENT The proposed contract amendment is in compliance with City Financial Policies. The recommendations in this report may have an impact on the General Fund. The proposed contract amendment, in combination with other Attorney Conflicts Panel contracts, may require additional funds for the ACP Fund No. 46T to fund the necessary expenses this fiscal year. The CAO will report on the Fund Balance in future Financial Status Reports. MAS:DMR:14140151c Attachment Wednesday - October 8, 2014 - PAGE 104 Wednesday - October 8, 2014 - PAGE 105 Office of the City Administrative Officer Attachment Attorney Conflicts Panel Byrne Nixon Contract C-121063 Table 1 - Contract and Amendment History Contract Funding Amount Revised Contract Total Purpose to Amend Date Council Authority Fourth $ 3,875,000 $ 6,325,000 Proposed Funding - Pending Third $ 1,200,000 $ 2,450,000 Funding Increase 03/05/14 C.F. 12-0014-S22 Second $ - $ 1,250,000 Add Staff to Contract 01/29/14 N/A First $ 800,000 $ 1,250,000 Funding Increase 04/17/13 C.F. 12-0014-S7 Original $ 450,000 $ 450,000 Original funding 06/12/12 C.F. 12-0014-S2 Table 2 - Contract Appropriation and Expenditures Current Proposed Revised Contract Amount Contract Funding Contract Total $2,450,000 $3,875,000 $6,325,000 Cumulative Expenditures Paid in FY 2013-14 Remaining Balance $2,437,293.30 $2,437,293.30 $0.00 Table 3 - Allocation of the Proposed Funding of $1.55 million Pending invoices: $1,335,000 Projected funding needs: $3,875,000 ILCSC v. City $ 3,015,000 Case No. CV12-0551 Mei Ling v. City $ 60,000 Case No. CV11-7774 U.S. Department of Housing and Urban $ 400,000 Development Audit* U.S. Department of Justice $ 400,000 Investigation* 3,875,000 *calculated at $40,000 x ten months (September 2014 - June 2015) 14140151A Council File Number 14 -0600 -S242 Item: (6) BUDGET AND FINANCE COMMITTEE REPORT relative to the results from the 2014 Tax and Revenue Anticipation Notes Transaction. Recommendation for Council action: NOTE and FILE the City Administrative Officer's report relative to the results from the 2014 Tax and Revenue Anticipation Notes Transaction. Fiscal Impact Statement : Not applicable. Community Impact Statement : None submitted. Wednesday - October 8, 2014 - PAGE 106 FORM GEN. 160 CITY OF LOS ANGELES INTER-DEPARTMENTAL CORRESPONDENCE 0670-00033-0001 Date: July 2, 2014 To: The Mayor The Council From: Miguel A. Santana, City Administrative Officer Subject: RESULTS FROM THE 2014 TAX AND REVENUE ANTICIPATION NOTES TRANSACTION (C.F. 14-0600-S242) On June 26, 2014, the City sold $1.369 billion of tax and revenue anticipation notes ("TRAN") with a June 2015 maturity at a yield of 0.11 percent, the lowest ever achieved by the City to alleviate short-term cash flow needs and to pre-pay the two pension systems. The pre-payment of the City's pension contributions allows the City to receive a $35 million discount from the pension systems. Prior to the sale of the notes, this Office conducted an aggressive marketing outreach program by meeting with 15 investors to discuss the financial health and position of the City. Investor outreach is a critical component as it provides context to investors regarding the City's local economy, budget performance, fiscal management, and challenges. The City's continued investor outreach efforts have proved successful as the City received orders from 16 investors, including three investors who had never previously participated in past transactions. The investor presentation is attached (Attachment 1). Earlier this month, the City received the highest short-term ratings from the three main credit rating agencies. Fitch Ratings ("Fitch") assigned a `F1+' rating. Moody's Investors Service ("Moody's") assigned a 'MIG 1' rating. Standard & Poor's Ratings Services ("S&P") assigned a `SP-1+' rating. The rating reports are attached (Attachment 2). Fitch assigned the City's TRAN the highest rating due to "a sound note repayment structure, good coverage of the notes' maturity, substantial available and borrowable funds, and the City's overall credit quality." Fitch recognized the City's increasing general fund balance and reserves (8.4% of General Fund revenues) and meeting its capital improvement and reserve fund polices. According to Fitch, "The City has demonstrated that it can implement significant actions to respond to economic contraction and its personnel-related expenditure pressures, and management retains a range of budget options to achieve greater structural balance." However, Fitch is sensitive to the significant liabilities of the City such as increasing pension contributions despite recent pension reforms, banked overtime accrued by police officers, and large potential general fund liabilities related to litigation. In addition, Fitch also affirmed the City's general obligation bonds at `AA-`, judgment obligation bonds at `A+', Municipal Improvement Corporation of Los Angeles (MICLA) lease revenue bonds and certificates of participation at `A+', and the Los Angeles Wednesday - October 8, 2014 - PAGE 107 2 Convention and Exhibition Center Authority lease revenue bonds at `A+' with a stable rating outlook. Moody's stated that the City's strengths are an "exceptionally large, diverse economy that continues to grow economically sensitive receipts, stable cash operations, reasonable cash-flow projections, and a history of closely and accurately managed cash-flow results." Some of the challenges Moody's listed are the City's relatively late final set-aside timing that is one month before note maturity, weaker than typical year-end cash level, and a high borrowing amount as a percentage of receipts. According to Moody's, the rating could move down if there is a "significant deterioration of the City's projected year-end cash position" and "inability or unwillingness to make offsetting mid-year budget adjustments". S&P assigned the City's TRAN the highest rating due to the general credit worthiness of the City, good-to-strong coverage on repayment amounts, and a history of relatively accurate cash-flow projections. In addition, S&P noted that the City's General Fund Balance is strong based on its Fiscal Year 2012-13 audited figures. The TRAN financing team is comprised of Montague DeRose & Associates, LLC and Acacia Financial Group, Inc. (WBE) as Co-Financial Advisors, Hawkins, Delafield & Wood, LLP (LBE) as Note Counsel, Kutak Rock LLP (LBE) as Special Tax Counsel, and Nixon Peabody (LBE) as Disclosure Counsel. The underwriting team comprised of Ramirez & Co., Inc. as Senior Manager (LBE/MBE), Stifel, Nicolaus & Company as Co-Senior Manager (LBE), and Citigroup Capital Markets Inc. as Co-Manager (LBE). Attachment 1 — Investor Presentation, June 2014 Attachment 2 — Rating Reports MAS:HTT:09140263 Wednesday - October 8, 2014 - PAGE 108 Attachment 1 Investor Presentation June 2014 Wednesday - October 8, 2014 - PAGE 109 .7 0.1111 4 4, 4, 4 401,01,0 14zr 14zr NI't NI't 11 11 sirrioto a a Yororm 0,0 II II 1 r 12", ; ; nua nua Baia Baia aioN aioN 14quasaard 14quasaard - i i V uop.rdpguy ioZ ioZ pur pur Sol Sol dun' JoisaAui xr xr Jo Jo j j A Ku Wednesday - October 8, 2014 - PAGE 110 or be All the (the any You have your other copy, legal, made herein, change only for matters or shall be the executed. and to may or evaluating salesperson to Angeles Presentation be such will in you event as should otherwise. investors. Underwriter there to duplicate, Los fact their upon, security presented subject you no on presentation. all as to the of is in Notes In by are Notes Investor 2014, for any by permits not the have that City contact of the 13, this reliance and could to upon law advisors the Notes. electronic in may sale agree suitable June representations by should or this own herein be relied such respect party you any accuracy regarding after distribute commitment of be information not a or governing your or any with offering Clients not update transactions may terms by makes purchase with to mentioned unless may decisions financial the publish City such taken Notes presentation, actual presentation constitutes the proposed for the solicitation a consult the completeness the on this this or obligation to for circumstances. effects nor action produce, transaction jurisdiction investment as information or effect to materials should any offer 2014 any other describe Any viewing solicitation involving such nor home accessing 13, You Any made these particular or that any are adverse By and in which their only. 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Co., Assistant & Team Montague / Angeles 2 Inc. Ramirez Los of Group, City Manager: Presentation Financial Officer Senior Brill Santana President White R. Management Corley Acacia A. Vice -President Debt Co Brian of Noreen Natalie Administrative Miguel Senior Chief City Advisors: Financial Wednesday - October 8, 2014 - PAGE 112 to dates 2014 and 15, July receipts following on the cash than 2014 revenue, Prepayment later 15, not July income, on Pension Fund 2015 Summary 2015 2015 25, taxes, 2015 payments 2014 2015 21, System 25, 23, General 22, -aside 25-26, Prepayment the Notes: 2015 April set January February May March Statement. including for the June 25, on on on on on 3 Retirement with on Official Pension 2014 June Structural moneys due received on interest interest interest interest interest 10, Police fund Thursday, Preliminary - and and and and and City July the Employees' and established interest flow -1+ the maturing City consult SP Fire of unrestricted and TRAN Fund cash / on principal principal principal principal principal note please Thursday, Wednesday of of of of of million million MIG1 moneys Service claim million / principal -Exempt 20% 20% 20% 20% 20% 2014 -month information ■ ■ ■ ■ ■ $1,363,520,000* other $625.0 $350 $411.5 Tax Debt F1+ First pay Closing: Pricing: 12 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ further for change; to subject Status Proceeds Size* and of Ratings Security Structure* Schedule* Tax Use Preliminary (Fitch/Moody's/S&P) * Wednesday - October 8, 2014 - PAGE 113 flat by: General Fund thereafter driven of remained 5% City's to General 2018-19, declining of 2018 due by positions 1% and Balance exceeded 4.7% has growth: through by Fund balance 2016-17 decreasing exceeding authorized in Balance growth been growing increased while structural liabilities has sustainable met: Fund peaking Program and Fund for 5.56% being by TRANs demonstrate Overview 4 Reserve addressing of condition demonstrates growth grew position Policies contributions Stabilization Improvement a 2012-13, Revenues fiscal actively portion indicators in Credit Budget Outlook is Budget Revenues Fund Capital flow 4Since .Economic Financial City 2014-15 City Cash Economic improving Budget The • • • • • path fiscal the to the solid on improving performance, the expects committed structural to City With continue and management, budget balance. economy, Wednesday - October 8, 2014 - PAGE 114 Mining 0.13% NR/ Diverse 0.13% Utilities is 1.28% City Construction the 1.50% Strengthen Management in 7.70% 1`1"ll to ` , Services Manufacturing 1.84% Other & Trade Services 2.00% Arts Estate 3.4% 2.00% 5.69% Entertainment 3.72% 3.77% Real 4.1% Economics. Information Warehouse Transport/ Wholesale Finance/Insurance Educational Employment Beacon Source: Continue 5 and State the for 6.00% 8.00% 4.00% 2.00% 0.00% 16.00% 12.00% 14.00% 10.00% - - - - Division Decline 2013 Indicators to Information U.S. Employment Market the 2012 for Rate Labor Total Statistics 2011 Continues Department, Labor Angeles of 2010 Los Economic of Unemployment Development Department City Labor, 2009 of Employment NIM --City Bureau U.S. California Unemployment 1,740,000 1,700,000 1,660,000 1,620,000 1,720,000 1,680,000 1,640,000 1,600,000 Source: County; Wednesday - October 8, 2014 - PAGE 115 & & Equip. 6% 5% Supplies Bldg. Food Division. 7% Beverage Materials/ 13% Stores and Clothing Garden Stations Gasoline Clothing Accessories & Diverse Statistics (cont'd) and 4% Stores Home Are 7% Appliance Stores General Furnishings Research Merchandise Equalization, of Industry Dealers Vehicle 9% Board by Parts State Motor & Strengthen &_/ Sales California to Places 2012. of 16% Services Other As 24% Retail] Outlets All 9% Drinking Food Group Source: Taxable Other 6 Continue 2013 Grow to 2012 Indicators Equalization 2011 of Continue Board 2010 California Sales Economics, 2009 Economic Beacon Taxable $5 $0 $35 $10 $45 $20 $30 $40 $15 $25 Source: Wednesday - October 8, 2014 - PAGE 116 -2.8% -11.0% -57.5% -42.8% Annual Change Apartment 2013 Decreasing Duplexes, Increasing 2012 are 925 3,917 2,178 3,809 Dwellings, Safety. Foreclosures and -Family 2011 Single Valuation Building for of 2010 -30.8% -27.1% -48.6% -13.5% Annual Change issued Foreclosures Condominiums. Department permits Permit and 2009 Approaching and include Angeles, - 8,800 7,615 2,850 5,550 Los Defaults of permits Hotel/Motels, $400 $800 City Level DataQuick $2,000 $1,200 $1,600 Source: Residential Buildings, 2013 Year 2010 2011 2012 Source: Defaults Residential Market 7 -Recession ($000s) Value Housing $114 $106 $107 $108 Capita Pre Assessed l'er Records Increasing Is Growth Angeles 2.48% 5.10% 1.29% (2.31%) Average Previous Annual Valuation Near Inc. Los in IS Statistics, $403,970 $409,131 $440,569 $419,169 millions) Total Prices Municipal Assessed - - - of DataQuick $0 California Home Net 2010 2011 2013 2012 I.evy Year Source: Source: $500,000 $200,000 $700,000 $400,000 $100,000 $600,000 $300,000 Wednesday - October 8, 2014 - PAGE 117 total center Cr) CA 1-1 County million 1-1 00C 42 O 0 \ convention 01-1 0 Angeles with in 00 C) C) Highs Los Spending tourism 0 0 2013 in \ 0 0 in LO 0 0 billions) Visitor jobs in investment 0 0 ($ additional records cf) 0 0 Angeles Record \ C 0 0 436,700 1-4 0 0 Los broke significant promote C) O 0 NNNC,INNNNNNNNNN and supports will $- $4 $2 $8 $6 $18 $14 $12 $20 $10 $16 volume Breaking Visitor facilities visitors Tourism Ongoing 8 • • • 2013, in demand 2.50% 0.00% 4.50% 4.00% 3:50% 3.00% 2.00% 0.50% 1.50% 1.00% Tourism billion 2013 (2014) - $18.4 benefit U 2013 0 - (2017) a) Year accommodate Sold cn Sold to record (2014) Marriott (2016) a Hotel economic Angeles by Rooms Inn Previous Nights Board net spent from Indigo Hotel Room Los construction billion Convention Change Hotel Courtyard Residence Renaissance Hotel & Angeles Angeles $28.3 under Los Los room room room room Tourism in to 474 4218 450 .4350 hotels 500,000 Angeles 2,500,000 3,000,000 2,000,000 1,000,000 1,500,000 Los Visitors resulting New • • Source: Wednesday - October 8, 2014 - PAGE 118 has year 2013 Angeles 2012 calendar Los 2011 of 2010 Port through Thrive 2009 Robust the is 2008 at -year to 2007 -over 2006 activity Angeles. year Industry Los 2005 of Port export 2004 8.21% Trade 2003 and Economics. $- Continues $50 $350 $300 $250 $200 $150 $100 Beacon ($Billionss) ($Billionss) Value Value Trade Trade 2014 increased Import Source: • 9 Industry Brazil, 40,000 High China, generate Travel -13 -Year to Jan activity Taiwan, 10 at -12 and Domestic Jan ■ expected include economic Board -11 local Angeles Jan project in Trade markets Convention & Los -10 Australia International Jan to billion and Tourism overseas $7 -09 Economics modernization key Jan and Angeles 6.0 5.4 4.8 4.2 3.6 2.4 3.0 0.6 Travel 0.0 1.8 1.2 Beacon Smoothed Smoothed & & SA SA Passengers, Passengers, of of Millions Millions Los jobs 2013 LAX Germany, Source: • • Source: Wednesday - October 8, 2014 - PAGE 119 ($30M) Growth ($216M) Ongoing Ongoing Projected Efficiencies Reduction/ ) 1 ( Deficit Million (14%) $433 18,163 31,875 13,7121 2014-15 -Time ($187M) Revenues One 31,893 18,187 13,706 ■ 2013-14 Solutions 31,817 18,170 2012-13 113,6471 10 18,597 32,274 13,677 2011-12 •e Others Budget 5.54% 5.58% 5.56% Percent Chan Departments) Staffing 19,225 32,965 2010-11 Civilian) City and 35,864 21,852 14,012 2,974.65 2009-10 2014-15 Proprietary $5,138.29 $8,112.94 Officer (Sworn 2014-15 36,971 Police 22,718 2008-09 114,2531 Adopted ■ Including Authorized Expenditures (Not Administrative 37,173-- 22,929 2007-08 City ($Millions) 2013-14 2,818.60 the $4,866.90 $7,685.50 Projected of 36,667 22,723 13,944 2006-07 Budget 2014-15 Office Adopted - 22,324 36,156 2005-06 Angeles, - - - - - - - - Revenue 0 Los 5,000 Base of 40,000 35,000 30,000 25,000 20,000 15,000 10,000 City 2013-14 Fund Component Funds CO Source: Budget General Total Special Wednesday - October 8, 2014 - PAGE 120 (proj.) (proj.) +5.1% +10.0% 2015 2015 Tax Tax (est.) (est.) +10.2% 2014 +21.5% 2014 Improve Transfer 2013 2013 to Occupancy +12.4% +42.7% 1 2012 2012 +10.7 +2.8% Transient Documentary I 2011 Continue 2011 +1.3.8% +12.0% - - - - - 50 50 200 250 150 100 200 250 150 100 `' .2 k .2 11 Revenues Fund (proj.) Officer (proj.) +4.6% +6.6`Yo 2015 2015 (est.) (est.) Administrative +5.5% -0.5% 2014 2014 General City Tax the Tax of 2013 2013 +9.8% +4.9% Office Sales Property Major Angeles, 2012 2012 -1.5% +9.0% Los of City 2011 2011 -0.6% City's +5.9% Source: 50 600 400 350 800 300 200 200 400 250 150 100 1,200 1,000 1,800 1,600 1,400 2 2 Wednesday - October 8, 2014 - PAGE 121 (proj.) +3.6% 2015 (est.) +6.2% 2014 Tax Improve Users' to 2013 +3.4% Parking 2012 +4.0% (proj.) +1.3% Continue 2015 2011 -1.3% - - - - - - /o 1) (est.) 80 60 40 20 +0.6 120 100 2014 0 Tax o 2013 +0.9° Users' 12 Revenues (cont'd) Utility 2012 -2.1% Fund (proj.) Officer -1.2% 2015 2011 -0.5% - - - - - (est.) +3.6% Administrative 635 630 625 615 620 610 605 2014 General 0 va r i City Tax the of 2013 +2.1% Office Business Major 2012 Angeles, +5.1% Los I of City 2011 City's -1.5% Source: 460 430 450 470 420 440 390 410 400 Wednesday - October 8, 2014 - PAGE 122 7.00% 8.00% 9.00% 6.00% 4.00% 5.00% 3.00% 2.00% 0.00% 1.00% Budget 41.3 6.78% 164.4 $142.8 2014-15 Adopted Fund Fund -End) Point $61.9 $212.9 $133,8 8.40% General 2013-14 (Year of % General as 1.5 $192.9 $133,8 2013-14 the BSF 7.98% of plus Highest Policy 5% 2012-13 1st) of at —Balance 2011-12 goal July of 9120.3 EMI Fund Exceeds 2010-11 Stabilization policy as 13 Budget $0.5 Fund 2009-10 ma Fund Officer $40.9 9125.2 (Actuals 2008-09 Reserve Reserve its Administrative 2007-08 City Contingency Stabilization the Reserve =III of $70.3 9108.5 4.12% 2006-07 exceeded Office Reserve and 4.02% 2005-06 Angeles, Budget Los met of Emergency $81.0 3.95% City 2004-05 MIN City - - - - - - Source: $- $50 The $400 $450 $350 $200 $250 $300 $150 $100 • A 3 Wednesday - October 8, 2014 - PAGE 123 $691 $456 $1,146 2018-19 in $710 $461 $1,170 2017-18 $710 $469 $1,179 2016-17 Decline $671 $446 $1,116 2015-16 to Pensions) $625 2016-19* $412 $1,037 2014-15 and $576 $367 2013-14 Projected I (LACERS Expected $848 $506 $342 2012-13 2014-15; Pensions ■ 14 Systems $793 $441 $352 2011-12 111 FY2018 Adopted LACERS $386 $339 $725 2010-11 Retirement ■ 2006-14; to Officer $653 $355 $298 2009-10 CAO the Amounts Contributions by Administrative $639 $326 $313 2008-09 Contributions City Actual the of City commissioned $666 $327 $339 ■ 2007-08 Office study a on $623 $280 ii$343 2006-07 Angeles, Pensions based Los of are $435 2005-06 City *Projections Source: $800 $600 $400 $200 $1,400 $1,200 $1,000 0 Wednesday - October 8, 2014 - PAGE 124 1 $24 $5,625 2018-19 $5,649 i $5,525 $5,453 2017-18 ($72) (Proposed) Outlook Officer ',5,287 2016-17 $5,472 15 —M—Expenditures ($186) Budget . Administrative City Year the of (Proposed) $5,293 $5,127 2015-16 Office . Four Revenues Angeles, Los of City $5,138 $5,138 2014-15 Source: $5,700 $5,600 $5,500 $5,400 $5,300 $5,200 $5,100 $5,000 $4,800 $4,900 0 ,--4 Wednesday - October 8, 2014 - PAGE 125 Wednesday - October 8, 2014 - PAGE 126 2014 TRAN Repayment Security Payroll Total GF Set-Aside Coverage (incl. Period Payment Set Aside Set Aside Total General Receipts + Coverage (excl. Borrowable Ending Dates Percentage Payment Fund Receipts Borrowable Borrowable Resources) Funds Resources) January 21 January 21 20% $277,930,827 $630,843,000 $1,597,989,000 5.75x 2.27x March 18 February 25 20% $277,930,827 $824,562,000 $1,812,155,000 6.52x 2.97x April 29 March 25 & April 23 40% $555,861,653 $964,509,000 $1,978,162,000 3.56x 1.74x May 27 May 22 20% $277,930,827 $663,311,000 $924,110,000 3.32x 2.39x $1,389,654,133 • Security structures for the TRAN include: $1,200,000 - Q First claim on unrestricted revenues $1,000,000 ' $200,000 $- Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 FY2014-15 Projected Ending Cash Balances —Total Borrowable Funds 16 Total 631,850 830,286 459,500 374,100 888,720 261,000 347,221 935,658 1,692,834 1,008,106 1,386,056 7,532,452 2,988,600 7,497,429 1,836296 1,389,654 - - 30 62,672 19,168 37,073 10,704 26,100 30,799 92,730 89,401 214,652 170,309 122,324 106,565 554,915 228,700 113,285 465,514 304,053 261,728 261,728 June $ $ $ $ - 27 30,952 59,003 32,809 83,103 16,129 59,133 26,100 37,292 78,979 23253 17,156 197,496 356,082 663,311 228,700 277,931 646,155 214,652 260,799 260,799 May $ $ $ $ 85,143 49,764 58,023 52,200 55,625 80,897 374,726 317,996 119,378 169,780 112,225 964,509 344,000 555,862 105,356 197,496 753,782 259,871 (177,231) Apri129 1,141,740 1,013,653 $ $ $ $ - 18 78,861 52,841 57,209 33,931 84,292 57,604 24,028 59,669 240,688 303,224 156,600 824,562 228,700 277,931 100,196 690,524 134,038 374,726 259,802 727,790 987,593 March $ $ $ $ - - - 18 9,167 48,231 58,058 25,775 45,491 52,872 64,331 68,887 74,453 327,137 (86,449) 294,758 228,700 381,207 240,688 259,666 737,401 997,067 February $ $ $ $ - - 21 8,730 49,012 70,768 38,196 54,973 33,490 (8,754) 56,645 47,967 16,354 335,891 375,674 630,843 240,700 277,931 639,597 327,137 259,597 707,549 967,146 January $ Projections $ $ $ - - - - 24 3,217 45,044 62,621 74,367 54,415 44,687 65,823 80,093 107,256 407,874 647,538 228,300 418,903 228,635 335,891 695,114 258,454 953,568 FLOW December $ $ $ $ 2014-15 CASH Flow - - 26 17 3,355 5,590 8,574 YEAR 70245 25,746 48,567 48,736 32,397 77,028 61,507 37,011 Thousands) FUND 104,653 340,482 227,800 303,471 259,753 107,256 664,587 924,340 (Projections) (In November $ FISCAL $ $ $ GENERAL - - - 29 Cash 6,479 89,100 91,381 59,295 51,944 90,856 70,245 142,025 (71,780) 112,665 162,023 520,943 340,700 109,223 592,723 262,706 648,484 911,190 October systems $ $ $ $ 17 retirement 4,136 48,360 42,714 35,035 32,247 43,721 60,207 70,363 46,441 13,229 233,238 (91,213) 266,420 227,600 and 357,633 258,213 142,025 641,925 900,139 September pension $ $ $ $ - - - - 2014-15 employee 20 4,641 48,228 36,858 12,625 41,428 70,958 the 58,506 63,408 489,255 214,738 238,300 110,541 470,755 233,238 641291 258,260 899,551 (256,017) to August $ $ $ $ contribution - 3,630 23 29,346 20,930 50,448 24,354 62,023 32,646 48,271 269,030 226,400 220,225 489,255 624,576 258,103 882,679 2014-15 1,386,056 1,609,433 1,114,537 1,389,208 July year $ $ $ $ ' fiscal City's of RESOURCES Fines Reimbursements prepayment Funds Fund a Supplies and and BALANCE ENDING M and Funds include Fees Service Funds Funds Controller BALANCE CASH Proprietary Other the Tax Proceeds Transfers Debt to PERIOD of Permits, CASH Tax Taxes from Equipment ANs Fund Users Revenues disbursements Tax Disbursement:5 Office Receipts TRANs Disbursements Borrowable TR Borrowable July PAYROLL BEGINNING RECEIPTS Licenses, Property Business Utility Sales Expenditure Transfer Other 2014 Total Allocations DISBURSEMENTS Salaries Services, Other 2014 Total SURPLUS/DEFICIT AVAILABLE/BORROWABLE ENDING Reserve Total Other 11) Source: Wednesday - October 8, 2014 - PAGE 127 2014 2014 2014 2014 2015 2015 Date* Fall Spring Winter Summer Summer Summer 0.7% Assessment Estimated 11.1% 36.3% Bonds, Obligation Leases, TBD million Million Million million Million Landscaping Bonds, Amount* 98 $18 $64 General $ $161 $100 Equipment Estimated 11.8% 2014) and Billion Debt 1, Center, Officer July $2.73 Money Angeles of Vista) Los New (As Total: of Convention Assessment (Playa Direct 4 Administrative 96-1 Paper City No. Purchase, 18 the of Corporation District Blue) (Direct District in Office Refunding Commercial Debt Bonds Lighting Calendar* Angeles, 1.6% Facilities Property 38.3% Center System Refunding Obligation and Improvement Bonds Los change of Real to Revenue Issuance Bonds, Waste City Outstanding Leases, -Approved Other Judgment Debt Landscape Refunding Municipal Lease Refunding) Community Refunding Convention Solid Wastewater *Subject Source: (Voter - be of is non direct service the next will property City's of for debt all 15% the tax debt by to debt the 6% for third of over direct debt a and special direct policy, years limited By debt is Over revenues voted City's supported and 69.3% receipts ten net retired Wednesday - October 8, 2014 - PAGE 128 627-6121 627-2116 378-7150 364-5963 486-8992 (213) (213) (212) (415) (213) Manager Manager -Manager Co -Senior Senior Co Manager Sales President Director Vice Corley Vocal Le Mukai President Banaszek Vice Senior Brian Vien Ron Institutional Director Holly Chris Managing 19 Information 473-7500 473-7500 473-7500 473-7500 509-3990 496-2211 (213) (213) (213) (213) (973) (805) Contact [email protected] [email protected] Advisors Issuer Officer Financial Officer Administrative Management Santana Brill Ceja City A. R. White Specialist Debt Montague of Administrative To -President City Miguel Benjamin Assistant Chief Natalie Ha Finance Co Noreen Doug Principal Wednesday - October 8, 2014 - PAGE 129 Attachment 2 Fitch Ratings Report Moody's Investors Service Report Standard & Poor's Ratings Services Report Wednesday - October 8, 2014 - PAGE 130 FitchRatings FITCH RATES LOS ANGELES, CA 2014 TRANS Tl-P, AFFIRMS OUTSTANDING BONDS Fitch Ratings-San Francisco-11 June 2014: Fitch Ratings has assigned an 'F 1+' rating to the following: --$1.36 billion Los Angeles (city), California 2014 tax and revenue anticipation notes (TRANs or notes). The notes will be sold via negotiation on June 26, 2014. They are not subject to redemption prior to final maturity. In addition, Fitch affirms the following rating: --$991.9 million outstanding Los Angeles general obligation (GO) bonds at 'AA-'; --$44.6 million outstanding Los Angeles judgment obligation bonds, series 2009-A and 2010-A at 'A+'; --$1.362 billion outstanding Municipal Improvement Corporation of Los Angeles (MICLA) refunding certificates of participation (COPs; refunding program AY), series 2005, and lease revenue bonds, series 2006-A, 2007-A, 2007-B1, 2007-B2, 2008-A, 2008-B, 2009-A, 2009-B, 2009-C, 2009-D, 2009-E, 2010-A, 2010-B, 2010-C, 2010-D, 2012-A, 2012-B, and 2012-C at 'A+'; --$303.1 million outstanding Los Angeles Convention and Exhibition Center Authority (convention center authority) lease revenue bonds, series 2003A and 2008A at 'A+'. The Rating Outlook is Stable. SECURITY The notes are secured by a first lien and charge against unrestricted general fund revenues attributable to fiscal 2015. To the extent that these moneys are insufficient to repay the notes in full at their maturity, the notes are repayable from any other legally available unrestricted moneys. The GO bonds are secured by ad valorem property taxes levied without limitation on rate or amount upon taxable properties within the city. The judgment obligation bonds are secured by the city's absolute and unconditional obligation to pay principal and interest to refund an obligation imposed by law. The MICLA COPs and lease revenue bonds, and convention center authority lease revenue bonds, are secured solely by the city's covenant to budget and appropriate lease rental payments for use and occupancy of various facilities and equipment. KEY RATING DRIVERS CITY'S INHERENT ECONOMIC IMPORTANCE: The city is the commercial and cultural center of a very large, diverse economy that is benefitting from revenue and property market improvements, despite an unemployment rate which remains stubbornly high. BUDGETARY STRUCTURAL IMBALANCE: The city's four-year financial projections indicate decreasing structural imbalance, but some of the underlying assumptions rely on further labor concessions and static levels of service provision which will likely prove difficult to achieve. Wednesday - October 8, 2014 - PAGE 131 CHALLENGING POLITICAL ENVIRONMENT: The city's challenging political and labor environment can hinder its ability to respond swiftly to budgetary pressures. Labor will likely be reluctant to agree to further concessions, and the public's desire for service restorations could create spending pressure. MANAGEABLE DEBT: Fitch expects the city's debt ratios to remain moderate, but notes the increasing pension and other post-employment benefit (OPEB) costs resulting from past investment losses and the liabilities associated with both banked police overtime and litigation. STRONG SHORT-TERM DEBT COVERAGE: Fitch's highest short-term rating of 'F1+' on the notes reflects the sound repayment structure and good coverage of note repayment, particularly when sizable liquid borrowable funds are considered. RATING SENSITIVITIES The rating is sensitive to shifts in fundamental credit characteristics, including the city's strong financial management practices and ongoing efforts to reduce its general fund structural imbalance. CREDIT PROFILE Los Angeles is an important economy and by virtue of its size and diversity is well positioned to benefit from the current national economic recovery. The city is experiencing good revenue and property base growth which is expected to continue into fiscal 2015 and beyond. The tax base proved to be resilient during the recession, and considerable property development currently underway should bolster future taxable valuation growth. While the unemployment rate remains stubbornly high at 9.7% in March 2014, it is better than a year prior (11%) and the July 2010 peak of 14.7%. The city's socioeconomic characteristics remain somewhat mixed, as would be expected for such a large urban area. The recent Los Angeles 2020 Commission report focused particularly on a net decline in non-farm job employment over the past decade, poor job creation, significant income inequality, and lower educational metrics. FINANCIAL OPERATIONS STILL UNDER PRESSURE Despite an initial significant budget gap, fiscal 2013 ended with a strengthened unrestricted general fund balance of $609.8 million (13% of spending), up 12.8% from the year prior and the third year in a row to end with a net operating surplus after transfers. In fiscal 2014, the city faced an initial general fund gap of $216 million and a smaller $37 million mid-year budget gap, the majority of which will likely be closed at year-end through use of reserves and savings. The city expects to end fiscal 2014 with a similar or larger unrestricted general fund balance than in fiscal 2013, well above the 5% reserve policy. The city is projecting that at year-end its emergency reserve ($133.8 million), contingency reserve ($212.9 million), and budget stabilization fund ($61.9 million) will cumulatiyely amount to 8.4% of fiscal 2014's general fund revenues, up from 5.2% in fiscal 2013. This strengthening of general fund balance and reserves is despite 60% of civilian employees refusing to give up an already agreed- to 5.5% pay increase on Jan. 1, 2014 on the grounds that the increase was negotiated in return for already implemented labor concessions. To close a further, larger budget gap of $433 million in fiscal 2015, the city again plans to rely on a mixture of recurring solutions (57%) and non-recurring solutions (43%). However, unfunded budget components which could pressure budget balance during fiscal 2015 are related to public safety labor costs, an ambulance augmentation program, and street resurfacing and repairs. Nevertheless, the city Wednesday - October 8, 2014 - PAGE 132 has budgeted to meet or exceed its policy goal of devoting 1% of general fund expenditures to capital improvement projects for the second consecutive year, as well as maintaining its cumulative reserves above the 5% policy level. The city is projecting decreasing general fund budget gaps in fiscal years 2016-2018 and then, for the first time since 2009, a general fund budget surplus of nearly $24 million in fiscal 2019. Some of the underlying assumptions appear reasonable (for example, ongoing steady revenue improvement and no significant workforce growth). Fitch considers, however, that in a stronger economic environment it will be challenging for the city to ask employees to contribute more to benefits while offering no cost of living adjustments to pay. Sworn personnel are likely to seek remuneration increases, and residents are also likely to expect service restorations as the economy improves. The city has demonstrated that it can implement significant actions to respond to economic contraction and its personnel-related expenditure pressures, and management retains a range of budget options to achieve greater structural balance. However, implementing them will require difficult political decisions and greater political unity than has always been demonstrated in the past, further labor concessions (difficult in light of those already achieved), and new revenues. The failure of a May 2013 ballot measure to increase the sales tax rate indicates that new tax revenues will be hard to achieve. STRONG NOTE REPAYMENT STRUCTURE Fitch's highest short-term rating of 'F 1+' reflects a sound note repayment structure, good coverage of the notes' maturity, substantial available and borrowable funds, and the city's overall credit quality. Fitch notes this TRANs borrowing is 2.9% higher than the city's fiscal 2013 TRANs borrowing, primarily to accommodate the city's intent to prepay its growing pension payments for both civilian personnel ($403.2 million) and sworn personnel ($616 million) to achieve savings of approximately $35 million. In addition, this TRANs borrowing will provide $344.3 million for cash flow management purposes. The city makes five 20% set-asides of principal and interest on Jan. 21, Feb. 25, March 25, April 23, and May 22, 2015. Therefore, 100% of principal and interest will be set aside more than a month ahead of the June 25, 2015 note maturity date. The city expects general fund ending cash balances to provide full debt service coverage of 1.87x to 2.25x on each set-aside date without drawing upon $261 million-$1.013 billion in borrowable funds available at those set-aside dates. Including borrowable funds increases coverage to 3.06x to 5.84x. MODERATE OVERALL DEBT BURDEN Net overall debt is moderate at $4,175 per capita and 3.6% of market valuation. Amortization of direct debt is rapid at nearly 73% in 10 years. Fitch expects that the overall debt burden to increase but remain manageable as the city issues additional new debt. Debt levels also could increase if the city funds potential adverse legal settlements through judgment bonds (as discussed below). SIGNIFICANT LIABILITIES For fiscal 2013, the city reported that its pension systems, the Los Angeles City Employees Retirement System (LACERS) and the Fire and Police Pension Plan (FPPP), were funded at 68.7% and 83.1% respectively. Using Fitch's more conservative 7% discount rate, the funded ratios were weaker, at 63.5% for LACERS and 76.8% for FPPP. Both pension systems have large unfunded actuarial accrued liabilities ($4.7 billion and $3 billion, respectively). The city's annual contributions to the two pension systems will continue to increase for some time despite recent pension reforms (such as the creation of new pension tiers for both sworn and civilian recruits). Wednesday - October 8, 2014 - PAGE 133 Despite successful negotiations to cap retiree health benefit costs, the city's annual OPEB contributions will also continue to rise. LACERS' OPEB funded ratio was 71.9% in fiscal 2013, compared to a high of 78.6% in fiscal 2011. FPPP's OPEB prefunding ratio is a much weaker 38.5%. However, both these levels of prefunding remain notably high for municipal OPEB systems. The city has considerable banked overtime accrued by police officers. The accrued 2.3 million hours are currently valued at $112 million. While the city intends to reduce this liability through managed leave, those hours which are not used for leave will have to be paid out when individual police officers resign or retire. This approach risks creating considerable future financial pressure since the stored hours will become more expensive as salaries increase over time. Therefore, Fitch notes as a credit positive the $15 million appropriated in fiscal 2014 to begin paying down the overtime bank. Conversely, the intended general fund budgets for police overtime in fiscal years 2015 and 2016 are significantly less than historical norms, suggesting that further overtime will need to be banked absent significant changes in the management of police overtime. The city also has large potential general fund liabilities related to litigation. At June 30, 2013, the city had $771.5 million in probable general fund legal liabilities and a further approximately $500 million in pending general fund litigation. Major adverse settlements would likely be funded through judgment obligation bonds which would put additional strain on ongoing resources and boost debt levels. In fiscal 2013, combined debt service payments, annually required pension contributions, and OPEB pay-as-you-go costs were a manageable 20.8% of total governmental fund expenditures. Contact: Primary Analyst Alan Gibson Director +1-415-732-7577 Fitch Ratings, Inc. 650 California Street, 4th Floor San Francisco, CA 94108 Secondary Analyst Amy Laskey Managing Director +1-212-908-0568 Committee Chairperson Steve Murray Senior Director +1-512-215-3729 Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: [email protected]. Additional information is available at 'www.fitchratings.com'. In addition to the sources of information identified in Fitch's Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope, University Financial Associates, S&P/Case-Shiller Home Price Index, IHS Global Insight, and National Association of Realtors. Wednesday - October 8, 2014 - PAGE 134 Applicable Criteria and Related Research: --'Tax-Supported Rating Criteria' (Aug. 14, 2012); --'U.S. Local Government Tax-Supported Rating Criteria' (Aug. 14, 2012). Applicable Criteria and Related Research: Tax-Supported Rating Criteria http ://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686015 U.S. Local Government Tax-Supported Rating Criteria http ://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685314 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/ UNDERSTANDINGCREDITRATINGS. 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Wednesday - October 8, 2014 - PAGE 135 MOODY'S INVESTORS SERVICE Rating Action: Moody's assigns MIG 1 rating to City of Los Angeles' (CA) 2014 TRAN Global Credit Research - 13 Jun 2014 Approximately $1.4 billion in debt affected New York, June 13, 2014 -- Moody's Rating Issue: 2014 Tax and Revenue Anticipation Notes; Rating: MIG 1; Sale Amount: $1,380,000,000; Expected Sale Date: 6/25/2014; Rating Description: Note: Tax and/or Revenue Anticipation Opinion Moody's Investors Service has assigned a MIG 1 rating to the City of Los Angeles' 2014 Tax and Revenue Anticipation Notes in the approximate amount of $1.4 billion. RATINGS RATIONALE The rating primarily reflects the reasonable budget assumptions underlying the city's cash flow projections; the city's stable, though modest projected year-end cash position; and the minimum, one-month cushion between the city's pledged final set-aside and the note maturity. The 2014 TRANS are general obligations of the city payable from unrestricted receipts received in or attributable to Fiscal 2015. Approximately 75% of the IRAN proceeds will be used to pre-pay the city's full, annual pension contribution at the beginning of the fiscal year and the remaining 25% of TRAN proceeds will be used for General Fund cash flow needs. Moody's rates the city's unlimited tax general obligation bonds Aa2 with a stable outlook. STRENGTHS -Exceptionally large and diverse economy that continues to strengthen economically sensitive receipts -Stable cash operations -Reasonable cashflow projections -History of closely and accurately managed cashflow results CHALLENGES -Relatively late final set-aside timing that is one month before note maturity -Weaker than typical year-end cash level -High borrowing amount as a percentage of receipts WHAT COULD MOVE THE RATING UP -N/A WHAT COULD MOVE THE RATING DOWN - Significant deterioration of the city's projected year-end cash position - Significant variances in receipts or disbursements and inability or unwillingness to make offsetting mid-year budget adjustments The principal methodology used in this rating was Short-Term Cash Flow Notes published in April 2013. Please see the Credit Policy page on www.moodys.com for a copy of this methodology. 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Wednesday - October 8, 2014 - PAGE 139 STANDARD &POOR'S RATINGS SERVICES McGRAW HILL FINANCIAL RatingsDirect® Summary: Los Angeles; Note Primary Credit Analyst: Jennifer Hansen, San Francisco (1) 415-371-5035; [email protected] Secondary Contact: Misty L Newland, San Francisco (1) 415-371-5073; [email protected] Table Of Contents Rationale Related Criteria And Research WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 16, 2014 1 1333500 1301707811 Wednesday - October 8, 2014 - PAGE 140 Summary: Los Angeles; Note Credit Profile US$1386.056 mil TRANs ser 2014 due 06/25/2015 Short Term Rating SP-1+ New Rationale Standard & Poor's Ratings Services assigned its 'SP-1+' short-term rating to Los Angeles, Calif.'s tax and revenue anticipation notes (TRANS) 2014. The series 2014 TRANs mature June 25, 2015. The rating reflects our view of Los Angeles': • General creditworthiness (AA-/Stable general obligation rating); • Good-to-strong coverage of TRAN repayment set asides and final maturity by projected available general fund cash balances; and • History of relatively accurate cash flow projections. The notes are secured by available taxes, income, revenues, and other unrestricted funds that Los Angeles is to receive for the general fund by its fiscal year-end, June 30, 2015. We understand the city will deposit pledged revenue into the debt service fund in January 2015, February 2015, March 2015, April 2015, and May 2015 in an amount equal to 20% of principal and interest due on all series of TRANs. We understand that Los Angeles is issuing the notes to prepay its pension actuarially required contribution for fiscal 2015, as well as to manage uneven cash receipts and disbursements throughout the year. We estimate Los Angeles' net general fund and pledged debt service fund cash balances after advance set-aside amounts, based on the city's projections and our assumptions below, provide the following good, 1.2x note principal and interest coverage at maturity. We understand that the city can borrow money from its reserve fund throughout the fiscal year without city council approval; however, it is only permitted to borrow from special fund balances before the last Monday in April , which requires council approval. Including the projected cash from all available borrowable resources, coverage increases to 1.38x. Los Angeles' projected cash flows for fiscal 2015 include a total 3.1% year-over-year assumed increase in cash receipts, net of IRAN proceeds. City officials report the cash flow assumptions are based on the fiscal 2015 adopted budget, which includes a 3.9% increase in property tax revenues based on the county assessor's assumptions. Sales taxes are also projected to increase by 4.6%. Other revenues are projected to increase by $136.5 million or 18.2% primarily due to the transfer of $117.5 million from its reserve funds. Los Angeles projects overall general fund cash disbursements, net of TRAN payments, in fiscal 2015 will increase 4.9% primarily due to rising pension and salary costs and general increases in costs of services. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 16, 2014 2 1333500 I 301707811 Wednesday - October 8, 2014 - PAGE 141 Summary: Los Angeles; Note The city has previously demonstrated historically conservative cash flow projections. Officials estimate actual fiscal 2014 ending cash will be $269 million, which would improve coverage to 1.5x, up from the projected 1.3x. According to the resolution, the city will invest note proceeds and the debt service fund in permitted investments within its general pooled investment fund but will account for them separately from other funds in the pool. On a generally accepted accounting principles basis, Los Angeles' fiscal 2013 audit reflected a $152.9 million operating surplus after transfers to contribute to a $609.8 million available general fund balance, or about 13% of general fund expenditures, which we consider strong. In fiscal 2014, based on its mid-year numbers, city management estimates a $74 million increase in Los Angeles' combined emergency, budget stabilization and contingency general fund budgetary reserves to about $400.6 million, or about 8.2% of estimated expenditures at the end of the year. Last year, the city also passed a new policy that requires the set-aside of annual revenue growth exceeding 3.4% for certain major revenue categories into the budget stabilization fund (BSF). The city's fiscal 2014 projections show the deposit of $61 million into the BSF. The fiscal 2015 budget solved an estimated $433 million budget gap primarily with $216 million in assumed ongoing revenue growth, as well as $186 million from one-time revenue, including the use of reserves built up from prior years. The budget also assumes $30 million in cost savings due to departmental efficiencies and cost reductions. The city also reduced its assumptions about police overtime costs being paid in the current year. However, the city has set aside $30 million in unappropriated general fund balance if savings are not achieved. Related Criteria And Research Related Criteria USPF Criteria: Short-Term Debt, June 15, 2007 Complete ratings information is available to subscribers of RatingsDirect at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 16, 2014 3 1333500 1301707811 Wednesday - October 8, 2014 - PAGE 142 Copyright © 2014 Standard & Poor's Financial Services LLC, a part of McGraw Hill Financial. All rights reserved. No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. 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S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription) and www.spcapitaliq.com (subscription) and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 16, 2014 4 1333500 1301707811 Wednesday - October 8, 2014 - PAGE 143 Council File Number 14 -1284 Item: (12) BUDGET AND FINANCE COMMITTEE REPORT relative to the First Construction Projects Reports for Fiscal Year 2014-15. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. TRANSFER $1,941,007 between departments and funds as specified in Attachment 1 of the City Administrative Officer (CAO) report dated September 19, 2014 attached to the Council file. 2. TRANSFER $5,473,795 between funds and other financings, as specified in Attachment 2. 3. TRANSFER $1,701,732 between accounts within departments and funds as specified in Attachment 3. 4. TRANSFER $56,000 between departments and funds from General Obligation Bond Funds as specified in Attachment 4. 5. AUTHORIZE the Controller, in accordance with Attachment 2, to transfer cash from Proposition K and Other 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. 6. INSTRUCT the Bureau of Engineering (BOE) to submit required documentation to Caltrans to cancel and deobligate $924,000 for the Barham/Cahuenga Corridor Transportation Improvements Phase IV Project. 7. INSTRUCT the BOE to submit required documentation to Caltrans to cancel and deobligate $1,532,000 for the San Fernando Mission Boulevard - Sepulveda to the Golden State Freeway Improvements Project. 8. AUTHORIZE the Controller to decrease appropriations totaling $800,000 from Measure R Local Match Fund 51Q/94, Account 94G401, San Fernando Mission Rd. Widening. 9. APPROPRIATE from GSD Trust Fund 843/40, Account 2200, Miscellaneous Deposits to GSD Trust Fund 843/40, Account TBD entitled Marvin Braude HVAC Improvement. 10. TRANSFER expenditure of $381,324 (P01452872) from CIEP 100/54, Account 00K077 entitled Citywide Infrastructure Improvements, to GSD Trust Fund 843/40, Account TBD entitled Marvin Braude HVAC Improvement. 11. AUTHORIZE the Controller to appropriate from Fund 26M/40, Account TBD entitled QECB Projects to GSD Fund 100/40 as follows to: Fund No. Account Title Amount 100/40 003040 Contractual Services $116,144.58 12. AUTHORIZE the CAO to make technical corrections, as necessary, to those transactions included in this report to implement Mayor and Council intentions Fiscal Impact Statement : The CAO reports that transfers, appropriations and expenditure authority totaling $9,172,534 are recommended in the September 19, 2014 CAO report, attached to the Council file. Of this amount, $6,772,058 is for transfers, appropriations, and expenditure authority to the General Services Department and $2,400,476 is for other City funds. All transfers and appropriations are based on existing funds, reimbursements or revenues. There is an estimated annual impact of $312,886 due to operations Wednesday - October 8, 2014 - PAGE 144 and maintenance costs as a result of these recommendations (Attachment No. 5). The CAO further reports in the September 29, 2014 Addendum report that the retrofit work is being funded by Municipal Improvement Corporation of Los Angeles funds under the Quality Energy Conservation Bonds program. There is no additional General Fund impact for operation and maintenance since this is an existing facility. Community Impact Statement : None submitted. Wednesday - October 8, 2014 - PAGE 145 REPORT FROM OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: September 1 9, 201 4 CAO File No. 0640-01399-0064 Council File No. Council District: All To: Mayor Council From: Miguel A. Santana, City Administrative Office, Reference: City Capital Projects Subject: 2014-15 — First Construction Projects Report SUMMARY Our Office is transmitting for your consideration the First Construction Projects Report (CPR)for Fiscal Year 2014-15. This report recommends funding adjustments needed to keep construction projects on track. The financial transactions are for projects in the City's Capital Improvement Expenditure Program (CIEP), various recreational facility projects, General Obligation Bond (GOB) funded projects and General Services Department(GSD) construction projects. RECOMMENDATIONS That the Council, subject to the approval of the Mayor: 1 Transfer $1,941,007 between departments and funds as specified in Attachment 1; 2. Transfer $5,473,795 between funds and other financings, as specified in Attachment 2; 3. Transfer $1,701,732 between accounts within departments and funds as specified in Attachment 3; 4. Transfer $56,000 between departments and funds from General Obligation Bond Funds as specified in Attachment 4; 5. In accordance to Attachment 2, authorize the Controller to transfer cash from Proposition K and other 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 City Administrative Officer; Wednesday - October 8, 2014 - PAGE 146 PAGE 2 6. Instruct the Bureau of Engineering to submit required documentation to Caltrans to cancel and deobligate $924,000 for the Barham/Cahuenga Corridor Transportation Improvements Phase IV Project; 7. Instruct the Bureau of Engineering to submit required documentation to Caltrans to cancel and deobligate $1,532,000 for the San Fernando Mission Boulevard - Sepulveda to the Golden State Freeway Improvements Project; 8. Authorize the Controller to decrease appropriations totaling $800,000 from Measure R Local Match Fund 51Q/94, Account 94G401, San Fernando Mission Rd. Widening; 9. Appropriate from GSD Trust Fund 843/40, Account 2200, Miscellaneous Deposits to GSD Trust Fund 843/40, Account TBD entitled Marvin Braude HVAC Improvement; 10. Transfer expenditure of $381,324.00 (P01452872)from CIEP 100/54, Account 00K077 entitled Citywide Infrastructure Improvements, to GSD Trust Fund 843/40, Account TBD entitled Marvin Braude HVAC Improvement; and 11. Authorize the City Administrative Officer to make technical corrections, as necessary, to those transactions included in this report to implement Mayor and Council intentions. FISCAL IMPACT STATEMENT Transfers, appropriations and expenditure authority totaling $9,172,534 are recommended in this report. Of this amount, $6,772,058 is for transfers, appropriations, and expenditure authority to the General Services Department and $2,400,476 is for other City funds. All transfers and appropriations are based on existing funds, reimbursements or revenues. There is an estimated annual impact of $312,886 due to operations and maintenance costs as a result of these recommendations (Attachment No. 5). Wednesday - October 8, 2014 - PAGE 147 PAGE 3 DISCUSSION This report contains the specific financial adjustments recommended for Capital Improvement Expenditure Program (CIEP) or General Services Department (GSD) construction projects and for General Obligation Bond (GOB), Municipal Improvement Corporation of Los Angeles (MICLA), other Special Funds and various grant funded projects. .The following is a discussion regarding recommendations included in the report and is presented in two sections: Construction Projects and Bond Projects. 1. CONSTRUCTION PROJECTS The following are brief descriptions, by department, of budgetary adjustment recommendations included in this report for General Fund, Special Fund or MICLA financed projects. A. Boyle Heights Neighborhood City Hall CIEP Attachment No. 1 Recommendation No. 1 An appropriation totaling $130,000 from CIEP funds to the GSD Building Maintenance Division is recommended for maintenance of the Boyle Heights Neighborhood City Hall also known as the Chicago Building. The Chicago Building, a 33,573 square foot facility, has undergone major rehabilitation and seismic retrofit work over the last six years and was re-opened to the public during the 2013-14 fiscal year. There are multiple City departments and community organizations that provide services from this building. In the 2014-15 Budget, the Mayor and Council authorized CIEP funding in the amount of $130,000 to help maintain this facility. Council approval is now required to effectuate the transfer of these funds to GSD budgetary accounts. O&M Fiscal Impact: The annual impact for operations and maintenance of the facility is estimated at $312,886. Some of these expenses are offset by receipts form the special funded City entities and revenue from non-profit occupants of the building. The remaining fiscal impact of $130,000 will be offset with this transfer. B. Department of Cultural Affairs (DCA) — Percent for the Arts CIEP Attachment No. 1 Recommendation No. 1 A transfer of $85,237 from CIEP funds to the Arts and Cultural Facilities and Services Trust Fund (Arts Fund) is recommended. Administrative Code Section 19.85 established a City-wide art program for the cultural benefit of the City. An amount equal to one percent of the total cost of all public works improvement projects undertaken by the City must be deposited into the Arts Fund. The funds are used by DCA to provide art programs throughout the City. Each year, the CIEP includes a line item for the Percent for the Arts program. Council approval is required to transfer $85,237, which represents the fee for Fiscal Year 2013-14 based on actual expenditures from the CIEP. Wednesday - October 8, 2014 - PAGE 148 PAGE 4 Council approval is required to appropriate the funds to the Arts Fund and DCA budgetary accounts. O&M Fiscal Impact: There is no associated impact to the General Fund since this is an administrative action. C. Energy and Water Management and Conservation Program — Various City Facilities CIEP Attachment No. 1 Recommendation No. 1 An appropriation of $122,566 the CIEP funds to GSD Building Maintenance Division for Energy and Water Management projects at ten City buildings comprised of seven LAPD, one LAFD, and two Municipal facilities to participate in LADWP's Energy Efficiency Technical Assistance Program (EETAP) is recommended. GSD Building Maintenance Division is in the process of having DWP certified contractors perform energy audits of these facilities to identify potential energy efficiencies. Council approval is required to appropriate the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operations and maintenance since these are existing facilities. D. Bureau of Engineering (BOE) — Barham/Cahuenga Corridor Transportation Improvements Phase IV Project Cancellation and Deobligation of Grant Funds Metropolitan Transportation Authority (MTA- 1999 Call for Projects) Recommendation No. 6 Cancellation and deobligation of Metro grant funds totaling $924,000 for the Barham/Cahuenga Corridor Transportation Improvement Phase IV Project due to significant project funding shortfall and schedule delays is recommended. The total approved project cost was $2,412,000 ($1,495,000 from a Metro Grant plus $917,000 from Proposition C Local Match). MTA is requiring that the City only deobligate remaining grant funds of $924,000. In November 2007, BOE executed a funding agreement with MTA for this project. In order to implement this street widening project, it was necessary to encroach onto the existing abandoned Barham Boulevard off-ramps from the 101 Hollywood Freeway. As a result, several approvals were required by Caltrans. These included new traffic railing which required environmental and crash test clearances, State Historic Preservation Office (SHPO) approval for any modifications to the existing historic site, and additional right of way at the Odin Street off-ramp to meet Caltrans' latest 65-foot truck turning radius standards. It was determined that these requirements would add costs significantly to the project's existing $3 million shortfall and add an extensive amount of delay to the schedule. Therefore, BOE has concluded that due to the unexpected project scope changes and excessive increase in costs, the project is deemed unreasonable to pursue. In addition, Council District 4 has agreed that the costs have outweighed the public benefits and concurs with BOE's recommendation to cancel the project. Wednesday - October 8, 2014 - PAGE 149 PAGE 5 Council approval is required to instruct BOE to submit documentation to officially request project cancellation and deobligation of grant funds totaling $924,000 from Caltrans. This notification will ensure that the City continues to be eligible to participate in upcoming MTA Call for Projects funding cycles. O&M Fiscal Impact: There is no associated impact to the General Fund since this is an administrative action. E. BOE — Crescent Drive Bulkheads and Grading Special Gas Tax Improvement Fund (SGAS) Attachment No. 2 Recmmendation No. 2 A transfer of $309,417 from the Gas Tax Fund to the CIEP Crescent Drive Bulkheads project account is recommended. Council previously appropriated $820,000 for this project as part of the Year-end Financial Status Report and that action was deemed a matter of urgent necessity due to potential public safety risks (C.F. 13-0600-S156). Additional funds are needed to complete the work. The Crescent Drive Bulkheads project will repair two washouts along an unimproved section of Crescent Drive. The washouts developed due to rainstorms in March 2014. This section of Crescent Drive provides the sole means of access to three residential properties. With the exception of the initial 160 feet of Crescent Drive, the majority of the street has been withdrawn from public use and consists of a single-lane unimproved dirt road, 10 feet to 20 feet wide, which extends approximately 1,600 feet west and southwest of where the improved portion of the street ends. The City Attorney has advised that even though the road was withdrawn from public use, the street has not been formally vacated by the City, and the City remains responsible for maintaining the street. During the surveying process, it was discovered that additional bulkheads will be required to re-establish a minimum travel width of 12 feet to accommodate emergency vehicles. Based on the preliminary plans and estimate, a supplemental appropriation of $309,417 is needed to reestablish access for emergency vehicles. Project completion is anticipated by March 2015. Council approval is required to transfer funds from the Gas Tax Fund to the CIEP, Crescent Drive Bulkheads project account. O&M Fiscal Impact: There is no General Fund impact for operations and maintenance as this is an existing infrastructure. F. BOE — Pacific View Drive Bulkhead Repair SGAS Attachment No. 3 Recommendation No. 3 A transfer of $150,000 within the Gas Tax Fund for the Pacific View Drive Bulkhead Repair project is recommended. Council has declared projects of this type a matter of urgent necessity as defined by Charter Section 371 (e)(5) due to potential public safety risks. Wednesday - October 8, 2014 - PAGE 150 PAGE 6 This project will repair an existing bulkhead that is failing. The bulkhead is in urgent need of repair as the wooden lagging boards spanning between vertical steel piles have moved-outwards and are near collapse. This damage has resulted in a portion of the roadway being dislodged. The repair will include replacement of the existing lagging with new lagging of higher strength, and repaving the portion of damaged roadway. Project completion is anticipated by December 2014. Council approval is required to transfer funds within the Gas Tax Fund into a new project account entitled, Pacific View Drive Bulkhead Repair. O&M Fiscal Impact: There is no General Fund impact for operations and maintenance as this is an existing facility. G. BOE — San Fernando Mission Boulevard - Sepulveda to the Golden State Freeway Improvements Cancellation and Deobligation of Grant Funds Metropolitan Transportation Authority (MTA- 2001 Regional Surface Transportation Program- RSTP) Recommendation Nos. 7 and 8 Cancellation and deobligation of Metro grant funds totaling $1,532,000 for the San Fernando Mission Boulevard - Sepulveda to the Golden State Freeway Improvements due to significant project funding shortfall and schedule delays is recommended. The total approved project cost was $2,343,941 ($1,543,941 from MTA-RSTP plus $800,000 from Measure R Local Match). MTA is requiring that the City only deobligate remaining grant funds of $1,532,000. In February 2011, BOE executed a funding agreement with MTA for this project with federal funds which required additional environmental studies and clearances to widen San Fernando Mission Boulevard between Sepulveda Boulevard and the Golden State Freeway. These requirements added significantly to the project's existing $2 million shortfall and created an extensive amount of delay to the schedule. Council District 7 has informed BOE that there was no longer support from the community for this project and requested that the project be canceled. Therefore, BOE has concluded that due to the unexpected project scope changes and excessive increase in costs, the project is deemed unreasonable to pursue. Council approval is required to instruct BOE to submit documentation to officially request project cancellation and deobligation of grant funds totaling $1,532,000 from Caltrans. This notification will ensure that the City continues to be eligible to participate in upcoming MTA Call for Projects funding cycles. O&M Fiscal Impact: There is no associated impact to the General Fund since this is an administrative action. H. BOE — Sunset Boulevard Near Coronado Terrace to Waterloo Street — Phase 1 Remedial Slope Mitigation SGAS Attachment No. 3 Recommendation No. 3 Wednesday - October 8, 2014 - PAGE 151 PAGE 7 A transfer of $208,349 within the Gas Tax Fund is recommended for work on the Sunset Boulevard near Coronado Terrace project. Council previously appropriated $1,015,000 for this project as part of the 2011-12 Adopted Budget. The scope of the project consists of constructing a shotcrete soil-nail retaining wall to stabilize a barren and steep slope at Sunset Boulevard between Coronado Terrace and Waterloo Street within Council District 13. This shotcrete soil-nail wall option was designated as the most feasible for this project. Because the slope was cut by the City at the time the original Sunset Boulevard was graded, according to the City Attorney's Office, the City has a responsibility to mitigate the safety hazard to the public way. The project's current available balance of $864,060 is not sufficient to fund the higher than expected construction bids received on June 19, 2014 primarily due to the difficult steep slope site conditions. The lowest bid of $974,918 exceeds the construction budget plus 10 percent contingency by $208,349. This additional appropriation of $208,349 will increase the total project appropriations to $1,223,349 ($1,015,000 plus $208,349). Project completion is anticipated by June 2018. Council approval is required to transfer funds within the Gas Tax Fund Contingency account into the Sunset Boulevard Near Coronado Terrace project account. O&M Fiscal Impact: There is no General Fund impact for operations and maintenance as this is existing infrastructure. I. BOE — Wilshire Resurfacing, San Vicente to Western Project — Materials Testing Measure R Local Return Fund Attachment No. 2 Recommendation No. 2 A transfer of appropriations totaling $116,000 from the Measure R Local Return Fund to GSD's Standards Division is recommended to provide materials testing services for the Wilshire Resurfacing project. The funds for this work were appropriated within the Wilshire Resurfacing, San Vicente to Western account as part of the 2013-14 Measure R Fund's budget. The work consists of testing the asphalt pavement material for quality assurance purposes. The material testing work should be completed by the end of March 2015, and the Wilshire Resurfacing project is anticipated to be completed by June 2015. Council approval is required to transfer and appropriate the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no General Fund impact for operations and maintenance as this is existing infrastructure. J. Bureau of Street Lighting — 3rd Street Tunnel Project SGAS Attachment No. 2 Recommendation No. 2 A transfer of $350,000 from savings in the Sepulveda Tunnel Lighting project to the 3rd Street Tunnel project within the SGAS is recommended. The monies are needed to pay Wednesday - October 8, 2014 - PAGE 152 PAGE 8 for unforeseen contractor expenses. BSL installed 114 street lights as part of the 3rd Street Tunnel Project. Unforeseen conditions such as rebar and soft masonry areas in the ceiling that altered the structural design and caused multiple change orders were encountered at a total cost of $350,000. Council approval is required to appropriate the funds to BSL's budgetary accounts. O&M Fiscal Impact: There is no General Fund impact for operations and maintenance since these costs are financed by special funds. K. BSL — Fire Hydrant and High Voltage Conflict Program Street Lighting Maintenance Assessment Fund (SLMAF) Attachment No. 2 Recommendation No. 2 An appropriation of $509,728 from SLMAF to the BSL is recommended for the Fire Hydrant and High Voltage Conflict Program. This program converts high voltage streetlights that are within 20 feet of a fire hydrant to low voltage units reducing the danger to the public if either the street lighting unit or fire hydrant were damaged. The estimated completion date is June 2015. Council approval is required to appropriate funds to BSL's budgetary accounts. O&M Fiscal Impact: There is no General Fund impact for operations and maintenance since these costs are financed by special funds. L. BSL — LED Conversion General Benefit Lights SGAS Attachment No. 2 Recommendation No. 2 An appropriation of $48,156 from the SGAS to BSL to continue converting 1,000 General Benefit Lights in various locations throughout the City is recommended. The work will start in September 2014 and will include the conversion of incandescent lights to energy efficient LED lights. The estimated completion date is June 2015. Council approval is required to appropriate funds to BSL's budgetary accounts. O&M Fiscal Impact: There is no General Fund impact for operations and maintenance since these costs are financed by special funds. M. BSL — My Figueroa Project (Linking South Los Angeles to the Downtown Figueroa Corridor) Transportation Grant Fund (TG) Attachment No. 2 Recommendation No. 2 An appropriation of $405,650 from the TG Fund to BSL to continue construction work on the My Figueroa Project is recommended. This project will install 738 street lights covering the areas between Figueroa Street from 7th Street to Martin Luther King Jr. Blvd., 11th Street from Figueroa to Broadway, and Martin Luther King Jr. Blvd. from Figueroa to Vermont. The project is currently 50 percent complete and it is estimated that it will be completed in June 2015. TGF project monies reverted in June 2014 and need to be reappropriated to continue construction. Council approval is required to appropriate the funds to BSL's budgetary accounts. O&M Fiscal Impact: There is no Wednesday - October 8, 2014 - PAGE 153 PAGE 9 General Fund impact for operations and maintenance since these costs are financed by special funds. N. BSL — Security Lighting 18 Project Measure R Attachment No. 2 Recommendation No. 2 An appropriation of $188,940 from Measure R funds to BSL to begin the installation of approximately 50 streetlights at 17 bus stop locations is recommended. The design has been completed by the Department of Transportation (DOT). BSL crews will begin construction work this fiscal year and the estimated completion date is June 2015. Measure R monies reverted in June 2014 and need to be reappropriated in order to begin construction. Council approval is required to appropriate the funds to BSL's budgetary accounts. O&M Fiscal Impact: There is no General Fund impact for operations and maintenance since these costs are financed by special funds. 0. Cypress Park Community Center — Youth Recreation Space CIEP, Sites & Facilities, and CDBG Attachment No. 2 Recommendation No. 2 An appropriation of $505,903 from CIEP, Sites and Facilities, and Community Development Block Grant(CDBG) 40 th Program Year (PY) monies to GSD Construction Forces Division is recommended to provide additional funding for the Cypress Park Community Center located in Council District 1. In June 2011, the project received a total of $500,000 in Proposition K seventh cycle competitive grant monies to construct youth center space as part of a new community center at the former library facility (C.F. 10-2317). The scope of project has since expanded to include facility upgrades for code compliance including disabled access and structural, electrical, mechanical, and fire protection/life safety upgrades. Available funding totaling $305,903 from the CIEP ($59,696) and Sites and Facilities Funds ($246,207) were identified in the Proposition K Program Reconciliation Report to address the additional scope of work (C.F. 12-1670-S2). An additional $300,000 in CDBG 40th PY funds was approved by Council on April 8, 2014 for the additional work (C.F. 13-1395). Of the approved CDBG funding, only $200,000 is being recommended for appropriation at this time. Project completion is anticipated by December 2014. Council approval is required to appropriate the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no impact to the RAP operational budget for increase operations and maintenance as this is an existing facility. P. Daniels Field Sports Center — Restrooms Renovations Sites & Facilities Attachment No. 2 Recommendation No. 2 An appropriation of $511,271 from Sites & Facilities monies to GSD Construction Forces Division is recommended to provide additional funding for the restroom Wednesday - October 8, 2014 - PAGE 154 PAGE 10 renovations at the Daniels Field Sports Center, located in Council District 15. In June 2011, the project received a total of $485,716 in Proposition K seventh cycle competitive grant monies to construct a new press box and renovate restrooms (C.F. 10-2317). The project has been on hold since 2013 due to a significant funding shortfall caused by the demolition of the old press box. The press box component is being rescinded along with half the funding award. Since being on hold, the original construction estimate for restroom renovations has increased to $754,129 due to inflation. Available funding from the Sites and Facilities Fund was identified in the Proposition K Program Reconciliation Report to address the project's shortfall (C.F. 12- 1670-S2). The remaining funds of $242,858 from the original award along with the $511,271 appropriation from Sites and Facilities will be used to complete the restroom renovations. Project completion is anticipated by November 2015. Council approval is required to appropriate the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no impact to the RAP operational budget for increase operations and maintenance as this is an existing facility. Q. GSD - Citywide Elevator Repairs Program — Various City Facilities CIEP Attachment No. 1 Recommendation No. 1 An appropriation of $102,554 from CIEP funds to GSD Building Maintenance Division to cover elevator repairs at the Central Library is recommended. Funding is provided in the CIEP Citywide Elevator Repairs program budget. Council approval is required to appropriate the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operations and maintenance since these are existing facilities. R. GSD - Citywide Infrastructure Improvement Program — Various City Facilities CIEP Attachment No. 1 Recommendation No. 1 An appropriation of $184,778 from CIEP funds to GSD Building Maintenance Division to cover infrastructure improvement work required at various facilities is recommended as follows: Pacific Area Police Station Carpeting $ 21,000 Foothill Police Station Flooring 47,000 CD 8 Constituent Services Center Partial Carpeting 24,113 Valley Fleet Services Yard (Raymer) Roll up doors 75,772 Sanitation Truck Repair Facility (Gaffey) Beam truss system 16,893 Total $ 184,778 Funding for this work is provided within the 2014-15 CIEP Citywide Infrastructure Improvement program budget. Council approval is required to appropriate the funds to Wednesday - October 8, 2014 - PAGE 155 PAGE 11 GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operations and maintenance since these are existing facilities. S. GSD — Citywide Nuisance Abatement Program CIEP Attachment No. 1 Recommendation No. 1 An appropriation of $25,384 from CIEP funds to GSD Construction Forces Division is recommended to maintain and secure City-owned nuisance properties. GSD responds to complaints on various properties which are often subject to illegal entry, dumping, and vandalism. The work may include general clean-up, removal of illegal dumping, weed abatement, graffiti removal, and boarding and fencing to secure the properties. In the 2014-15 Budget, Council approved $450,000 for nuisance abatement to address these types of issues, with work being prioritized to secure City-owned properties pending disposition for economic development. In addition, there remains an on-going need to secure various nuisance properties in order to address health and safety issues, and minimize liability. Council approval is now required to transfer the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operation and maintenance since these are existing facilities. T. GSD — Eagle Rock Neighborhood City Hall CIEP Attachment No. 1 Recommendation No. 1 An appropriation of $186,000 from CIEP funds to GSD Construction Forces Division is recommended to fund repairs for the Eagle Rock Neighborhood City Hall. This work was authorized as part of the 2014-15 Budget. The scope of work includes various structural repairs, painting and landscaping. The work is expected to be completed by October 2014. Council approval is now required to transfer the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operations and maintenance as this is an existing facility. U. GSD - Emergency Generator Upgrade for the Police Administration Building (PAB) CIEP Attachment No. 1 Recommendation No. 1 An appropriation of $392,000 from CIEP funds to GSD Construction Forces Division is recommended to repair the emergency generator at the Police Administration Building. The emergency generator at the PAB overheats and may not function properly as a result of coolant leaks in the radiator cores. The radiator associated with the emergency generator needs to be removed and reassembled with new cores to replace the leaking cores. Funding for this work is provided within the 2014-15 CIEP Citywide Infrastructure Improvement program budget. Council authority is required to appropriate the funds to Wednesday - October 8, 2014 - PAGE 156 PAGE 12 GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operations and maintenance as this is an existing facility. V. GSD - Fire Life Safety Building Systems (Reg. 4) CIEP Attachment No. 1 Recommendation No. 1 An appropriation of $684,887 from CIEP funds to GSD Building Maintenance Division to perform the Los Angeles Fire Department (LAFD) Reg. 4 testing, repair, replacement and certification of mandated fire/life safety fire alarm and monitoring systems in approximately 250 city buildings is recommended. Funding for this work is provided within the 2014-15 CIEP Fire Life Safety Building Systems Reg. 4 program budget. Council approval is required to appropriate the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact since these are existing facilities. W. GSD — Old Fire Station 62 Nuisance Abatement CIEP Attachment No. 1 Recommendation No. 1 An appropriation of 27,443 from CIEP funds to GSD Construction Forces is recommended to fund abatement work at Old Fire Station 62 located in Council District 11. This work was authorized as part of the 2014-15 Budget. The scope of work will include fencing, graffiti removal, exterior building repairs, landscaping, site clean-up and installation of temporary power source for security lighting. The work is expected to be completed by November 2014. There is no additional General Fund impact for operations and maintenance as this is an inactive facility. X. GSD — Real Estate Services Residential Properties Residential Property Maintenance Fund Attachment No. 2 Recommendation No. 2 An appropriation of $21,290 from the Residential Property Maintenance Fund to GSD Construction Forces Division is recommended for repair and cleanup at 8156 Zitola Terrace in Playa del Rey. Council has authorized GSD to perform renovation work to various City-owned residential properties (C.F. 91-2369). Work at this property includes cleaning, repair, and replacement of all damaged and broken elements such as doors, water heater, kitchen cabinets, restrooms, flooring, and windows. This on-going work at various City-owned residential properties is needed in order to lease the properties to residential tenants. Council approval is required to appropriate the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operation and maintenance since these are existing facilities. Wednesday - October 8, 2014 - PAGE 157 PAGE 13 Y. GSD — Standards Division Materials Testing Construction GSD Laboratory Testing Expense Account Attachment No. 3 Recommendation No. 3 A transfer of $71,649 within GSD's accounts to GSD Construction Forces Division is recommended for tenant improvements needed at the Standards Division Testing lab space. Council approval is required to transfer the funds within GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operations and maintenance since this is an existing facility. Z. GSD — Water Conservation Program GSD Revenue Source Account Attachment No. 3 Recommendation No. 3 An appropriation of $355,836 from GSD revenue sources to GSD Building Maintenance Division to install 855 water-conserving fixtures at 57 municipal buildings is recommended. GSD Building Maintenance Division submitted a loan application for $355,836 to the LADWP Energy Efficiency Measures Loan Program to cover the purchase and installation costs of these fixtures in addition to the cost of surveying an additional 107 potential sites for future retrofits. DWP approved this loan that will enable the Building Maintenance Division to install 309 water-conserving water closets and urinals and 546 aerators and showerheads. These efficient fixtures are expected to save the City 31.16 acre feet of water which is equivalent to 10,153,531 gallons of water. Council approval is required to appropriate the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operations and maintenance since this is an existing facilities. AA. ITA - Mount Lee Communications Electrical Upgrade Project MICLA Attachment No. 2 Recommendation No. 2 An appropriation of $2,000,000 from MICLA to GSD Construction Forces Division is recommended for upgrades to the electrical system at the Mount Lee communication site. Mount Lee is a critical communications hub for the City and is used for all public safety radio systems. The current electrical system is outdated and at risk of failure. The City has completed Phases I and II at this site, which included the preparation of a comprehensive system upgrade plan, the overhaul and replacement of obsolete electrical equipment, and the installation of adequate back-up capability. To date, $4.48 million has been approved for this project, including $2 million in the 2014-15 Budget for Phase III of the project. Phase III includes the upgrade of a power supply line and the installation of a monitoring system and final tests and commissioning of the upgraded system. The anticipated completion date for the project is February 2015. O&M Fiscal Impact: There is no additional General Fund impact for operations and maintenance since this is an existing facility. Wednesday - October 8, 2014 - PAGE 158 PAGE 14 AB. Los Angeles World Airports (LAWA) TI Work GSD Revenue Source Account Attachment No. 3 Recommendation No. 3 An appropriation of $324,728 from GSD revenue sources to GSD Construction Forces Division for tenant improvement and renovation projects at the LAWA is recommended. In accordance with the three-year Memorandum of Understanding (MOU) executed between LAWA and GSD on March 1, 2012 for GSD to perform as needed construction services. GSD has invoiced and received payment for the following approved projects: Projects Cost Removal of the upper level roadway planters in preparation for $ 3,746 the New Face of the Central Terminal Area project Hazmat abatement to various locations at the Manchester 1,947 Square Twelve (12) month renewal of construction office trailer and lay 838 down area Demolition and reconstruction of ADA curbs and ramps along 318,197 travel path of Terminal 1 and 3 parking structures Total $ 324,728 Council approval is required to appropriate the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no General Fund impact for operations and maintenance since these costs are financed by special funds. AC. Marvin Braude San Fernando Valley Constituent Service Center — HVAC Improvement GSD Trust Fund Attachment No. 3 Recommendation No. 3, 9, and 10 A transfer of expenditures from the CIEP to the GSD Trust fund in the amount of $381,324 for improvements to Marvin Braude San Fernando Valley Constituent Service Center is recommended. The retrofitting of the controls will save energy and provide better zone temperature control. Furthermore, the project enables remote access to the building's HVAC system which enables technicians to diagnose problems before going to the site. Council approval is required to appropriate the funds into GSD's Trust Fund account and to transfer expenditures from the CIEP to the GSD Trust Fund. O&M Fiscal Impact: There is no General Fund impact for operations and maintenance since this is an existing facility. Wednesday - October 8, 2014 - PAGE 159 PAGE 15 AD. DOT - Burbank Boulevard and Woodley Ave Intersection Improvement TG Fund Attachment No. 3 Recommendation No. 3 An increase in appropriations totaling $145,000 within the TG Fund for the Burbank Blvd and Woodley Ave Intersection Improvement Project is recommended. This action would increase total construction funding from $250,000 to $395,000. The total cost of this project is estimated to be $497,000 with contractor expenses of approximately $395,000 and City labor expenditures for construction management totaling approximately $102,000. Contractor expenditures will be paid out of the TG Fund. City labor expenses are already included in the Proposition C Anti-Gridlock Fund departmental appropriations. This project narrows the existing median and adds an additional eastbound left turn pocket on Burbank Boulevard to northbound Woodley Avenue. In addition, improvements such as new trees, curb and gutter, AC pavement, street lighting and traffic signal upgrades will be provided. DOT anticipates construction for this project will begin September 2014 and will be completed by June 2015. The cash balance within the TG Fund will front fund this project and costs will be reimbursed to the City. Council approval is required to appropriate the funds to this project. O&M Fiscal Impact: There is no General Fund impact for operations and maintenance since these costs are financed by special funds. AE. DOT - Bus Maintenance Facility Demolition Proposition A Local Transit Improvement Fund Attachment No. 2 Recommendation No. 2 An appropriation of $79,276 from the Proposition A Local Transit Improvement Fund to GSD Construction Forces Division is recommended for the demolition of a warehouse and parking lot at 462 E. Commercial Street on the site of the future DOT Bus Maintenance Facility (Bus Facility). The demolition work also includes the removal of footings and slabs. In 2010, Council approved the construction of the Bus Facility in downtown Los Angeles (C.F. 10-0913). Currently, the project is at 45 percent design completion and it is anticipated that construction of the new facility will begin in September 2015. Before any construction can begin, the demolition work must be completed. Council approval is required to appropriate the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operations and maintenance as these costs are financed by special funds. Wednesday - October 8, 2014 - PAGE 160 PAGE 16 AF. DOT - Transit Store Relocation Proposition A Local Transit Improvement Fund Attachment No. 2 Recommendation No. 2 An appropriation of $348,433 from the Proposition A Local Transit Improvement Fund to GSD Construction Forces Division is recommended for tenant improvement related to the relocation of the Transit Store to the Los Angeles Mall (Mall) Space 16. The work includes removal of existing tenant improvements, plumbing, electrical, and carpentry work as well as creation of a public counter, configuration of modular furniture, and construction of storage areas for printed materials. The Transit Store provides information about DOT's Commuter Express, DASH bus services, and other public transit services. However, the size of the current Transit Store is not sufficient to meet its growing number of customers. In January 2013, the Municipal Facilities Committee approved the relocation of the Transit Store from its current location in Mall Space 18B to a larger location at Mall Space 16. Construction at the new location is expected to be completed in November 2014, at an estimated cost of $398,433. DOT approved the estimate and processed a transfer of $50,000 from Proposition A Local Transit Improvement funds to GSD earlier this fiscal year to begin demolition work. Council approval is required to appropriate the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operations and maintenance as these costs are financed by special funds. AG. DOT — Vine Street Garage Retail Space Special Parking Revenue Fund (SPRF) Attachment No. 2 Recommendation No. 2 An appropriation of $79,732 from the SPRF to GSD Construction Forces Division for minor improvements to the Vine Street Garage Retail Space is recommended. The garage has been open since February 2013 for public parking; however the 2,200 square foot retail space is vacant. The proposed improvements will include a restroom with new flooring, a janitor's room with new flooring, tankless water heater and sink, and an HVAC system with open distribution ducts and a sprinkler system. The construction is expected to be completed by December 2014. Council approval is required to appropriate the funds to GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operations and maintenance as these costs are financed by special funds. AH. Reyes-Lyons Building TI Work GSD Leasing Account Attachment No. 3 Recommendation No. 3 A transfer of $64,846 within GSD's budgetary accounts is recommended for tenant improvements at the Reyes-Lyons Building located at 312 S. Hill St. The building was recently vacated by various City Attorney units who were relocated to the 14th and 23rd Wednesday - October 8, 2014 - PAGE 161 PAGE 17 floors of City Hall. The completion of the tenant improvement work at the Reyes-Lyons Building will allow for the relocation of City Attorney Family Violence unit, thus allowing for the termination of another lease at the Kawada Building. In August 2013, the Municipal Facilities Committee authorized a budget of $150,000 for this project. Since then, the landlord offered to perform portions of the approved scope of work. The remaining work includes replacing breakroom floors and patching and priming walls for paint or wall coverings. The revised estimate for this project is $113,548 and construction is expected to be completed by the end of September 2014. GSD processed a transfer of $48,702 to begin the work. Council approval is required to transfer the additional $64,846 within GSD's budgetary accounts. O&M Fiscal Impact: There is no additional General Fund impact for operation and maintenance since this is a leased facility. 2. BOND PROJECTS The following are brief descriptions of budgetary adjustments included in this report for GOB projects. A. Proposition F — Animal Facilities Bond Program Phase II Animal Facility Renovations Harbor and East Valley Animal Shelters Attachment No. 4 Recommendation No. 4 An appropriation of $26,000 from Proposition F Animal Facilities GOB funds to GSD Construction Forces Division is recommended for Phase II work at the Harbor and East Valley Animal Shelters. The work at the Harbor shelter will include patching and painting the reptile room and is estimated to cost $20,000 and the work at the East Valley shelter will include repairing sprinkler lines and replacing non-working sprinkler heads and is estimated to cost $6,000. Council approval is necessary to appropriate the funds to GSD budgetary accounts. O&M Fiscal Impact: There is no General Fund impact as these are existing facilities. B. Proposition F — Fire Facilities Bond Program Phase II Fire Facility Renovations Fire Stations 37 and 104 Attachment No. 4 Recommendation No. 4 An appropriation of $30,000 from Proposition F Fire Facilities GOB funds to GSD Construction Forces Division is recommended to install drainage systems for new extractors at Fire Stations 37 and 104. The work will include saw cutting floors and installation of drain lines and vents. Extractors clean and remove toxic substances and materials that accumulate in clothing worn by firefighters at fire incidents. Council Wednesday - October 8, 2014 - PAGE 162 PAGE 18 approval is necessary to appropriate the funds to GSD budgetary accounts. O&M Fiscal Impact: There is no General Fund impact as these are existing facilities. Donna Vong, Admini Analyst II APPROVED: Assistant City Administrative Officer MAS:DV.05140068C Attachments Wednesday - October 8, 2014 - PAGE 163