Official recommendation
AUTHORIZE the Controller to: Transfer $13,901,998 between departments and funds as specified in Attachment 1 of the City Administrative Officer report dated November 6, 2025 (CAO report), attached to the Council file. Transfer $1,596,590 between accounts within departments and funds as specified in Attachment 2 of the CAO report, attached to the Council file. Appropriate $4,511,700 between accounts within Departments and Funds as specified in Attachment 3 of the CAO report, attached to the Council file. Transfer and establish new appropriations totaling $365,178.88 within the Seward Capital Fund to dedicated project accounts for Item X – Shell Recharge Project Closeout in addition to the instructions in the CAO report, attached to the Council file, as follows: Transfer From: Fund 761/50, Sewer Capital Fund; 50AHBX, TIWRP Electric Vehicle Charging Stations - $220,355.93; 50ADAQ, HWRP Fleet Electrification and Greenhouse Gas - $144,822.95; Total: $365,178.88. Transfer To: Fund 761/50, Sewer Capital Fund; TBD, “Shell Project Closeout – Hyperion” - $220,355.93; TBD, “Shell Project Closeout – Terminal Island” - $144,822.95; Total: $365,178.88. Execute the necessary documentation as required to closeout the project and provide final payments for electric vehicle infrastructure projects completed by Shell ReCharge. AUTHORIZE departments as detailed below to make final payment to Shell ReCharge for all prior services provided, for a total amount of $2,696,427: General Services: Accounts 298/40V25F (2021-22), 298/40W25F (2022-23), 298/40T25F (2023-24); Total: $1,369,101. Street Lighting: Account 347/50ALIS (2024-25); Total $30,222. Sanitation (General Services): Accounts 298/40Y25F (2023-24), 761/50AHBX (2024-25), 761/50ADAQ (2024-25); Total $365,179. Street Services: Account 298/50WEVI (2022-23); Total $190,000. Fire: Accounts 298/38SEVC (2019-20), 298/38AEVC (2024-25); Total $188,379. Police: Account 298/70S738 (2019-20); Total $526,715. Recreation and Parks (General Services): Account 298/40Y25F (2023-24); Total $26,831. REAUTHORIZE the use of up to $1,180,590 in Municipal Improvement Corporation of Los Angeles (MICLA) funding authority provided in the 2019-20 and 2021-22 Adopted budgets that has expired and AUTHORIZE the continued use of funds beyond the City’s MICLA Three-Year Spending Policy for the installation of electric vehicle charging infrastructure as follows: Fiscal Year (FY): 2019-20, Fund: 298/70, Account: 70S738, Electric Vehicle Chargers – LAPD, Amount: $430,125. FY: 2019-20, Fund: 298/38, Account: 38SEVC, Electric Vehicle Chargers, Amount: $62,997. FY: 2021-22, Fund: 298/40, Account: 40V25F, Electric Vehicle Charging Infrastructure, Amount: $687,468. AUTHORIZE the CAO to make technical corrections, as necessary, to the transactions authorized through this report, as required to implement the intent of those transactions. Fiscal Impact Statement: The CAO reports that the recommendations stated in this report include transfers, appropriations, and authority for expenditures totaling $21.2 million. This consists of $13.2 million from various special funds, $4.6 million in MICLA, $3.1 million in Grant Funds, and $0.3 million in General Fund within the Capital and Technology Improvement Expenditure Program (CTIEP) program. All transfers and appropriations are based on existing funds, reimbursements, or revenues. There is a potential impact on the General Fund for operations and maintenance costs, with the amount yet to be determined. These costs will be addressed through the City budget process as projects are completed. Financial Policies Statement: The CAO also reports that the recommendations stated in this report comply with the City Financial Policies in that appropriations for funds are limited to available cash balances needed to fund ongoing maintenance, programming, project shortfalls, and critical operational needs in the current budget year. Debt Impact Statement: The CAO further reports that the issuance of MICLA debt is a General Fund obligation. The reauthorization of MICLA funding for the Shell ReCharge Project Closeout (Item X) would cause the City to borrow $1.2 million at an approximate 5.5 percent interest rate over a period of 20 years. The total estimated debt service for the MICLA-funded projects is $2.0 million, including interest of approximately $0.8 million. The estimated average annual debt service is $99,000 over a period of 20 years. Actual interest rates may differ as rates are dependent on market conditions at the time of issuance. We cannot fully predict what interest rates will be in the future. In accordance with the City's Debt Management Policy, the City has an established debt ceiling to guide the evaluation of the affordability for future debt. The debt ceiling for non-voted direct debt as a percentage of General Fund revenues is six percent. The 2025-26 Adopted Budget non-voter-approved debt service ratio is 2.40 percent. The issuance of MICLA debt for these projects will not cause the City to exceed the six percent non-voter-approved debt limit. Community Impact Statement: None submitted. (Budget and Finance Committee waived consideration of the above matter) Report from Transportation Committee 11-12-25 Transmittal Letter to Budget and Finance Committee 11-12-2025 Communication from City Administrative Officer 11-12-25 - Amendment Report from City Administrative Officer dated 11-06-25