Council File No. 15-0600

Budget and Finance Committee Discussing the Mayor'sProposed Budget for FY2015-16

Your Budget and Finance Committee reports as follows:

Your COMMITTEE UNANIMOUSLY RECOMMENDS that the City CouncilAPPROVE the following recommendations from your Budget and Finance Committee,which are submitted as changes to the Mayor's 2015-16 Proposed Budget, for adoption ofthe City's 2015-16 Budget.

Summary of the Mayor's Proposed Budget

The Mayor's Proposed Budget for FY 2015-16 totals $8.57B, which is a $446M (5.5percent) increase from the FY 2014-15 Adopted Budget. General Fund revenues for FY2015-16 are projected to be $5.39B, an increase of $254M (4.9 percent) from the 2014-15Adopted Budget. The Mayor's Revenue Outlook anticipates revenue growth of 5.1 percentfrom economically-sensitive components, with the largest growth rates assumed inproperty and documentary transfer taxes, as well as growth in transient occupancy tax andsales tax receipts.

The City Administrative Officer's Supporting Information to the Mayor's Proposed FY2015-2016 Budget contains a shortfall of $165.19M comprised of the following:

General Fund Base Revenue Change ($-10.89M) • 2014-15 Budgeted Revenue ($5,138.29M)• 2015-16 Revenue Estimate (From Four-Year 2014-15 Budget Outlook) ($5,127.40M)

2014-2015 General Fund Base Expenditures • Expenditures Required to maintain Current Level of Service ($5,138.29M)

Projected 2015-16 Expenditure Changes in the 2014-15 Budget Outlook ($154.30M)• Employee Compensation Adjustments ($60.70M)• City Employees' Retirement System ($36.00M)• Fire and Police Pensions ($45.80M)• Tax and Revenue Anticipation Notes - Cash Flow ($0.00M)• Workers Compensation Benefits ($4.70M)• Health, Dental and Other Benefits ($26.10M)• Debt Service ($-21.30M)• Unappropriated Balance ($-51.20M)• New Facilities ($0.00M)• City Elections ($-16.00M)• Capital Improvement Expenditure Program (Streets and Sidewalks) ($47.50M)• Appropriation to the Budget Stabilization Fund ($0.00M)

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• Police - Overtime ($20.00M)• Fire - Ambulance Augmentation ($2.00M)

TOTAL BUDGET DEFICIT $-165.19M

BUDGET BALANCING ACTIONS

New/Expanded Revenue Proposed for 2015-16 Above the 2014-15 Outlook ($264.84M)• One - Time Revenues ($156.02M)• Ongoing Revenues Above the 2014-15 Outlook ($108.82M)

Adjustments to 2014-15 Outlook to Reflect 2015-16 Proposed Expenditures ($-24.12M)• Employee Compensation Adjustments ($28.09M)• City Employees' Retirement System ($-10.52M)• Fire and Police Pensions ($-41.95M)• Tax and Revenue Anticipation Notes - Cash Flow ($0.95M)• Workers Compensation Benefits ($-9.20M)• Health, Dental, and Other Benefits ($-24.53M)• Debt Service ($16.79M)• Unappropriated Balance ($-38.77M)• New Facilities ($4.00M)• City Elections ($-0.70M)• Capital Improvement Expenditure Program (Streets and Sidewalks) ($14.59M)• Appropriation to the Budget Stabilization Fund ($6.00M)• Police - Overtime ($34.37M)• Fire - Ambulance Augmentation ($0.00M)• Other Expenditures Required to Maintain Current Level Service ($-3.23M)

Efficiencies/Reductions Included in the 2015-16 Proposed Budget ($-10.19M) • Aging - Expense Account Reductions ($-0.03M)• Animal Services - Expenditure Reduction ($-0.05M)• Animal Services - One-Time Salary Reduction ($-0.42M)• Animal Services - Salary Savings Rate Adjustment ($-0.21M)• Building and Safety - Salary Savings Rate Adjustment, General Fund ($-0.04M)• CAO - Expense Account Adjustments ($-0.11M)• CAO - Salary Funding Reduction ($-0.12M)• CAO - Salary Savings Rate Adjustment ($-0.11M)• City Clerk - One-Time Salary Reduction ($-0.16M)• Controller One-Time Salary Reduction ($-0.21M)• EWDD - One-Time Salary Reduction ($-0.14M)• Finance - Salary Saving Rate Adjustment ($-0.45M)• General Services - Reductions to Various Accounts ($-1.60M)• General Services - Building Maintenance ($0.21M)• ITA - Communication Services Reduction ($-0.50M)

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• ITA - Fire and Police Dispatch Centers ($-0.40M)• Personnel - Employee Selection Expense Account Reductions ($-0.18M)• Personnel - Salary Savings Rate Adjustment ($-0.51M)• Planning - Salary Savings Rate Adjustment ($-0.27M)• Police - One-Time Salary Reductions ($-2.81M)• PW/Board - One-Time Salary Reduction ($-0.20M)• PW/Board - Project Restore ($-0.07M)• PW/Contract Administration - One-Time Salary Reduction ($-0.08M)• PW/Engineering - One-Time Salary Reduction ($-0.28M)• PW/Street Services - One-Time Salary Reduction ($-0.50M)• Transportation - One-Time Salary Reductions ($-0.55M)

Interim Changes to Budget During 2014-15 Continued in 2015-16 ($9.87M) • City Attorney - Administrative Citation Enforcement Program ($0.28M)• City Attorney - Proposition 47 Prosecutors ($0.96M)• City Attorney - Qui Tam - Affirmative Litigation ($0.26M)• Fire - Deferred Civilianization ($0.11M)• Fire - Development Services ($0.61M)• Fire - Dispatch System Manager ($0.13M)• Fire - Emergency Incident Technicians ($0.31M)• Fire - Engine 35 ($1.34M)• Fire - FireStatLA Unit ($0.67M)• Fire - Four Geographic Bureau Structure ($0.82M)• Fire - Homeland Security Grants Unit ($0.13M)• Fire - Nurse Educators ($0.20M)• Fire - Public Safety Technology Team ($0.52M)• Fire - Rescue Maintenance ($0.42M)• Fire - Special Olympics World Games ($0.05M)• Other Special Purpose Fund - 901 North Olympic Hotel Trust Fund ($3.06M)

Increased Services in the 2015-16 Proposed Budget ($39.20M) • Animal Services - Field Operations Enhancement ($0.32M)• Building and Safety - General Analysis and Budget Services ($0.01M)• Building and Safety - Residential and Commercial Complaint Services ($2.08M)• CAO - Fuse Corps Fellows ($0.10M)• City Attorney - Family Violence Unit ($0.20M)• City Attorney - Intellectual Property ($0.09M)• City Attorney - Litigation and Risk Management System ($0.07M)• Controller - Controller Executive Support ($0.16M)• Fire - Constant Staffing Overtime - Air Operations ($0.22M)• Fire - Constant Staffing Overtime - Vacant Positions ($11.00M)• Fire - Firefighter Hiring and Training ($9.30M)• Fire - Firefighter Selection Unit ($0.05M)• Fire - FireStatLA Software Maintenance ($0.25M)

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• Fire - Support for the Film Industry ($0.11M)• GCP - Homeless Shelter Program ($0.86M)• GCP - Domestic Abuse Response Teams ($0.57M)• GCP - Office of International Trade ($0.14M)• GCP - Gang Reduction and Youth Development Office ($5.96M)• General Services - City Hall Boilers ($0.17M)• General Services - Increased Leasing Expenses ($1.00M)• General Services - Increased Support Services for Library ($0.06M)• General Services - LAPD Helicopter Maintenance ($0.70M)• General Services - Maintenance and Repair of Alternative Fuel Sites ($0.32M)• ITA - Customer Relationship Management System ($0.40M)• ITA - Payroll System Project Support ($0.31M)• Personnel - Increased Examining Support ($0.50M)• Personnel - Payroll System Project Support ($0.05M)• Personnel - Public Safety Outreach and Recruitment ($0.38M)• Police - Public Safety Technology Team ($0.12M)• PW/Board - Accounting Support for Development Services ($0.03M)• PW/Contract Administration - Bridge Improvement Program ($0.31M)• PW/Engineering - Replacement Plotters ($0.22M)• PW/Engineering - Support for Sidewalk Dining ($0.09M)• PW/Street Services - Actsoft Implementation Systems Support ($0.05M)• PW/Street Services - GPS Technology ($0.15M)• Transportation - Parking Citation Processing Support ($0.11M)• Transportation - Special Events Overtime ($2.00M)• Transportation - Support for Film Industry ($0.10M)• UB - BID Assessments on City Properties ($0.64M)

New Services/New Facility Expenses in the 2015-16 Proposed Budget ($84.89M)• CAO - Transparency and Special Projects Officer ($0.05M)• City Clerk - Neighborhood Council Elections ($0.25M)• Disability - ADA Compliance Services ($0.01M)• Fire - Community Liaison Office ($0.08M)• Fire - Fire Station 80 Aircraft Rescue and Firefighting ($0.33M)• Fire - Firefighter Recruitment Unit ($0.41M)• Fire - Vehicle Management System ($0.10M)• Finance - On-Line Chat Support Services ($0.12M)• GCP - Homeless Services for Veterans ($2.90M)• GCP - Clean Streets Citywide ($5.36M)• GCP - Council Community Projects ($4.50M)• General Services - Chief Sustainability Officer ($0.08M)• General Services - Integrated Workplace Management System ($0.86M)• ITA - Cybersecurity Operations Center ($0.87M)• ITA - Mainframe Migration ($1.00M)• ITA - Next Generation IT Staffing ($0.70M)

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• Other Special Purpose Funds - Affordable Housing Trust Fund ($10.00M)• Planning - LA RiverWorks ($0.05M)• Police - Mobile and Supporting Infrastructure Technology ($4.55M)• PW/Engineering - Management Training Program ($0.05M)• Transportation - Parking Structure Engineering Support ($ 0.09M)• Transportation - Strategic Capital Planning ($0.05M)• UB - CityLink LA ($1.00M)• UB - Economic Development Asset Management ($1.00M)• UB - Reserve for Liability Resolution ($50.00M)• UB - Solar to Grid Project ($0.50M)

TOTAL BUDGET BALANCING ACTIONS $165.19M

Discussion and Overall Issues in the 2015-16 Proposed Budget

Beginning on April 28, 2015, and extending over two weeks, the Budget and FinanceCommittee held over thirty-eight hours of public hearings to discuss the Mayor's ProposedBudget for FY 2015-16.

Chairperson Krekorian opened the hearings by outlining what the Committee planned toaccomplish over the course of the hearings. The Chair stated that the first week of hearingswould be dedicated to the discussion and review of each individual department budget. TheChair then discussed the second week's schedule, when the Committee would hearpresentations from the Coalition of City Unions and the Neighborhood Budget Advocates,as well as hear from the City Administrative Officer (CAO) on various other budget relateditems.

Over the course of the budget hearings, the Chair and Members of your Budget and FinanceCommittee discussed various aspects of the Mayor's Proposed Budget, posed a number ofquestions to staff, and requested more detailed reports on additional items, some of whichwould be addressed after the Committee concluded its review of the Proposed Budget. TheCAO responded in writing with 100 memos to the committee, and the CAO, Mayor, ChiefLegislative Analyst (CLA) and depaituient staff provided verbal responses to questionsasked during the course of the hearings. Each day's hearings also included time for hearingtestimony from the public on the Proposed Budget.

To initiate the budget hearings, the Chair asked the Mayor's Office to present an overviewof the Proposed Budget. The Deputy Mayor came forward and gave an overview of thework that the Mayor's Office undertook to put together the Proposed Budget. The Mayor'sOffice stated that this budget continued the City on its path towards fiscal sustainabilityand the stated goal of building a City that works for all residents. The Mayor's Officefirther stated that this budget continues the City's progress on becoming a safer, moreprosperous and livable city.

The Mayor's Office outlined the challenges that the City faces with this Budget,specifically closing the gap between revenues and expenditures and the difficulties of

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finding viable options to reduce expenditures after years of reductions. The Mayor's Officealso stated that the City needs to increase its investment in technology, maintenance andtraining, which cannot be postponed indefinitely. However, the Mayor's Office stated thatdespite these challenges, the Proposed Budget provides funding to restore capacity inoperating departments and improve services for residents of Los Angeles, largely due tocontinued economic growth and outside investment in the City. The Proposed Budgetanticipates a growth in the General Fund as a result of this economic growth, and theMayor's Office stated that revenue increases have enabled the City to invest in efforts toimprove city services. The Mayor's Office discussed its ongoing efforts to implementperformance-based budgeting and the continuing effort to implement data-driven metricsto ensure that City departments know what services are more in demand, enabling them tounderstand where to invest resources to get the most public benefit.

The Mayor's Office then highlighted some of the key investments included in the FY 2015-16 Proposed Budget. These investments include increased resources for the Police and FireDepartments to increase public safety, including five fire recruit classes and a commitmentto keeping the Police Department at 10,000 sworn officers; efforts to increasesustainability; the continued reduction of business tax rates; a $10 million investment inthe Affordable Housing Trust Fund; funding for programs to increase the City's earthquakeresiliency; programs to make Los Angeles a more livable city; and investment in programsdesigned to make Los Angeles the best run large city in the United States.

The CAO was then asked to give an overview of the Proposed Budget. The CAOrecommended the adoption of the Proposed Budget and stated that this budget was built onthe progress that the City has made since the Great Recession. The CAO stated that thisBudget is the first to fully comply with the City's financial policies since the recession.The CAO also stated that for the first time in recent years, the City is only using one-timerevenue for one-time expenditures. The CAO stated that the Reserve Fund balance is thehighest it has ever been, at $305M, even with an expected $80M transfer to the GeneralFund. The CAO also stated that the City's total reserves, which include the Reserve Fund,Budget Stabilization Fund, and the Unappropriated Balance, are the highest they have beenin the City's history. The CAO stated the Proposed Budget invests in specific core services,such as homeless services, ambulance services, Operation Clean Streets and policeovertime. The CAO also stated that revenue has grown by 5.1 percent across the sevenlarger sources of City revenue, largely as a result of the economic recovery. The CAOstated that the City is on track to eliminate its deficit by FY 2018-19. The CAO also statedthat his office is in support of ending Managed Hiring, but supports a modified ManagedHiring Process for depadments projected to incur a year-end budget deficit.

The CLA submitted to the Committee a comprehensive Overview of the FY 2015-16Proposed Budget. In her report, the CLA notes that the Mayor's FY 2015-16 ProposedBudget begins with a projected deficit of $165.2M.

The CLA summarized the following major components recommended in the ProposedBudget to close this projected deficit:

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• The Mayor's Proposed Budget recognizes $108.8M in expanded revenue, includingproperty, sales, business, utility users', documentary transfer and transient occupancytaxes.

• The revenue projections include $20.4M in increased Documentary Transfer Tax.These are among the most volatile of receipts. Increases in 2015-16 are attributed toincreased home prices. It is noted that growth is expected to slow and that growthbeyond 2015-16 will be much less than the nearly 10 percent assumed for 2015-16.Also included is an increase in Sales Tax Revenue of $52M. This is primarily attributedto the restoration of the full one percent of the uniform local sales tax anticipated in thespring of 2016.

• The Proposed Budget includes $5M in revenue from a yet-to-be executed agreementwith Airbnb and other short-term rental websites for the collection and remittance ofTransient Occupancy Tax.

• The Mayor's Proposed Budget is balanced in large part due to a transfer from the City'sReserve Fund. Through the hard work and fiscal restraint exercised by City leadersduring recent years, the City's Reserve Fund had reached its highest level ever,exceeding seven percent of General Fund revenue. The Mayor proposes to transfer$80M from the Reserve Fund to balance the 2015-16 Budget which represents almostone-half of the budgetary problem to be solved. The Mayor's Proposed Reserve Fundwould be at 5.65 percent, which exceeds the Financial Policy requirement of fivepercent, and is higher than the 2014-15 Adopted Budget of 5.53 percent.

• A $6M transfer is made into the Budget Stabilization Fund, increasing the balance to$71M, including interest earned during 2014-15. The Fund was established as a meansto mitigate the impacts during years of economic downturn. The Budget StabilizationFund Policy requires transfers into the Fund during years of economic growth, withcertain exceptions. The 2015-16 projections would have required a transfer into theFund in the amount of $61M, according to the CAO. However, the CAO notes that atransfer is not required inasmuch as the excess revenues are used to comply with theCity's capital investment policy. Had transfers into the Fund not been offset by thecapital investment policy, the Budget Stabilization Fund would have been significantlyhigher.

• A one-time amount of $33M over the base level of $23.5M is transferred from theSpecial Parking Revenue Fund (SPRF) to balance the Proposed Budget. The totaltransfer from SPRF to the General Fund is $56M.

• Other one-time revenue is included from the "Triple Flip" - Sales Tax ReplacementBonus ($37.8M) and the Telecommunications Development Account ($5.2M),bringing one-time revenue to $156M. It should be noted that the $5.2M from theTelecommunications Development Account is contingent upon resolution of a cablefranchise fee dispute ongoing since 2010.

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• The Proposed Budget adjusts the budgetary outlook by recognizing higher investmentearnings resulting in lower anticipated costs in both the civilian (-$10.5M) and sworn(-$41.9M) pension systems.

• Efficiencies and Reductions are applied in numerous departmental budgets, largely inthe form of one-time salary adjustments and increased salary savings rates, but mayalso include expense account reductions. These reductions result in $10.1M in GeneralFund savings.

The 2015-16 Proposed Budget anticipates a $304.5M Reserve Fund, consisting of a$148.3M Emergency Reserve and a $156.2M Contingency Reserve. This equates to 5.65percent of total General Fund revenues of $5.392B. The 2014-15 Adopted Budget ReserveFund was $284.1M, which equated to 5.53 percent of General Fund revenues at that time.

Charter Amendment P, approved by the voters in March 2011, requires the establishmentof an Emergency Reserve Account that contains no less than 2.75 percent of General Fundreceipts and a separate Contingency Reserve Account in the Reserve Fund. Expendituresfrom the Reserve Account are limited by Charter Amendment P. Funding in theContingency Reserve may be used to cover shortfalls in City revenue or pay for unexpectedexpenses. In addition, the City of Los Angeles enacted a Reserve Fund Policy in 2005 thatprovides for a phase-in of increasingly larger percentages of the General Fund to bedeposited into the Reserve Fund. The goal specified in this Policy is a Reserve Fund offive percent of General Fund revenues within ten years. This goal was achieved in 2013-14 and 2014-15, and the Mayor's Proposed Budget for 2015-16 continues to meet that goal.

A Budget Stabilization Fund (BSF) was created as part of the 2009-10 Adopted Budget tohelp reduce the impact on services during years of slow revenue growth or decliningrevenue. An initial deposit of $0.5M was made to the BSF in 2009-10. The 2014-15Adopted Budget increased the balance in the BSF to $62.1M. In April 2014, the Cityenacted Ordinance No. 182928 which established the requirements for deposits into andwithdrawals from the BSF, consistent with the provisions of Charter Amendment P, asapproved by the voters in March 2011. One of those requirements states that a depositmust be made into the BSF in any year when the combined growth rate of the seven majorrevenue categories exceeds 3.4 percent. In 2015-16, the Mayor's Proposed Budgetestimates that the combined growth rate will be 5.1 percent. This would require a transferinto the BSF of $61M, per the CAO' s calculation. However, the Proposed Budgetrecommends using the amount that would otherwise be deposited into the BSF to complywith the City's Financial Policy that the City shall annually budget one percent of GeneralFund revenue to fund capital or infrastructure improvements. As such, the ProposedBudget appropriates $6M to the BSF to provide a fund balance of $70.5M, which is thehighest to date

Budget & Finance Committee Hearings On April 28, 2015, City departments and members of the public began testifying beforethe Committee on all aspects of the FY 2015-16 Proposed Budget.

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The Director of Finance opened the hearings by summarizing the Office of Finance's rolesand responsibilities relative to the collection of City tax revenues and noted the impact onrevenues from the City's recent business tax reform efforts. To reduce General Fundobligations, the Director proposed to directly bill Proprietary Departments and certainspecial funded operations (Building and Safety, Department of Transportation) for theirbank fees and credit card service fees. Currently, the General Fund front funds many ofthese costs, with reimbursement at a later date. Members asked about the status ofFinance's effort to make the City's systems Payment Card Industry Data Security Standard(PCI) compliant by March of 2016, and the Director responded with a status report.Members also asked about revenue generated from Proposition D regarding MedicalMarijuana and compliance with that measure. Also, the Chair asked about the impact tostaffing of Finance's new "chat" mechanism, which the Director noted will allow onecustomer service representative to work with multiple taxpayers simultaneously.

The Library Department reported that this is the second year for which the Library'sCharter-mandated appropriation is equal to 0.03 percent of assessed value of all Cityproperty in accordance with Measure L. In addition, the General Manager stated that theLibrary has achieved its obligations under Measure L by restoring services, hours andreimbursing the General Fund for 100 percent of the Department's related costs, whichtotal 39 percent of the Library's budget. The Mayor's Sustainability Plan was discussed,and the Library described the efforts it has taken, including turf replacement, lightingcontrols, charging units for cars and public programming on environment and sustainabilityissues. The Committee discussed the significant amount of interaction that the Departmenthas with homeless individuals. The General Manager explained that all 73 Librarybranches work with the Los Angeles Homeless Services Authority (LAHSA) to train staffand provide medical referrals. The Library will continue to increase its technology presenceby circulating pre-loaded computers and tablets with an emphasis in low-incomecommunities where there is a greater need. Lastly, the Committee and the GeneralManager agree that the Library should create its own Budget Stabilization Fund to provideprotection for any future downturns in the economy.

The Department of Recreation and Parks' General Manager came before the Committeeand thanked the Mayor for the FY 2015-16 Proposed Budget which is seen as moving theDepartment in a positive direction. With the goal of having clean and safe parks, theDepartment stated that the focus will be on the augmentation of the Park Ranger and ParkRestroom Enhancement Programs. The Department explained the need for aSuperintendent of Recreation and Park Operations for Venice Beach for safety issues andcommunity relations, while the Committee debated on which areas the new position wouldcover, considering the Valley, Westside and Venice Beach. Regarding sustainability, theGeneral Manager highlighted the efforts taken with water conservation, including turfremoval and the use of recycled water, and reported that there is additional work to be donewith energy conservation. The Park Restroom Enhancement Program was discussed, andthe Department clarified that for FY 2015-16, 35 high-use restrooms will be maintainedmore often with more restrooms added in future years as needs are assessed. TheCommittee and Department discussed anticipated revenue from the Greek Theatre fromApril 2016 through June 2016, stating that it should be included in the Department's

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Budget. The Committee inquired about the Park Ranger Program, and the GeneralManager reported that with an enhanced ranger program, quality of life, non-emergencyissues (smoking, drinking, vandalism, etc.) could be addressed without the need for thePolice Department and would result in lower maintenance costs for the Department. It wasexplained that for FY 2015-16, the additional Park Rangers would be located in the Metroarea with future year expansions to other areas of the City. In closing, the General Manageragreed that to achieve the goals of clean and safe parks, the Park Rangers would benecessary in certain locations.

The General Manager of the Department of Transportation summarized the Department'spriorities: appropriation of resources to address core service needs; implementation of theStrategic Plan, particularly through the implementation of safety projects that will reduceaccidents and fatalities, and investment in technology to make the Department moreefficient. The Department reviewed the resources in the Proposed Budget, includingfunding for contractors that will expedite the restriping of streets that have been resurfaced.The Committee discussed upgrading the aging ATSAC control center. The Committee alsodiscussed the feasibility of bringing back neighborhood traffic management elements,particularly the installation of speed humps and on-street blue curbs to increase parking forthe disabled. The Committee considered street restriping activities, metrics that are usedto track progress, and whether the Department can keep pace with the proposed FY 2015-16 Pavement Preservation Program. The Committee discussed staffing levels, particularlyfor project delivery, strategic capital planning, and crossing guards. Additionally, theCommittee discussed the impact of community-based traffic and navigation applicationsand their potential benefit. The Committee also reviewed the proposed decrease in the part-time traffic officer program, which began in FY 2011-12.

During the discussion of the Fire Department's budget, the Committee congratulated theDepartment on its continuing turnaround since the financial crisis. In particular, theCommittee noted the department's use of FireStatLA to measure and analyze data, whichhas resulted in new initiatives such as the Nurse Practitioner Pilot Program and other newprograms, as well as the Department's increased focus on community relations. TheCommittee members discussed firefighter recruitment and the hiring process. The FireChief noted that the department is facing a large number of retirements next fiscal year,and that the number of recruit classes included in the budget would help the departmentbegin to address its staffing shortfall. Multiple members of the Committee raised concernsabout recruit classes not being representative of the City's population, and in particularnoted the Department's difficulty in reaching out to women and other underrepresentedgroups. The Fire Chief agreed with these concerns and indicated that the Fire Departmentrecruitment unit included in the Mayor's Proposed Budget would be used for targetedrecruitment of historically underrepresented groups. The Committee also discussed theAmbulance Augmentation Plan, noting that the program is fully funded for the first time.Councilmember Englander noted that this program should be renamed as it is now apermanent part of the department's budget. The Committee discussed other resourcesneeded by the Department, such as new software, a second set of turnout gear forfirefighters, an additional Engine Company and more Emergency Incident Technicians.The Fire Chief noted that the Department has applied for federal grant funds to operate two

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more Engine companies in the City, but agreed with the Committee's assessment that theDepartment still needs additional resources in order to fully recover from the financialcrisis and become a more responsive, modern department.

The City Attorney's representative expressed gratitude for all of the support that theCommittee and the Mayor's Office have provided to respond to the Office's needs. TheChair concurred with this statement, noting Council's commitment to provide the Officewith the resources they need for essential public safety services. Members asked about theCity Attorney's continued efforts regarding Workers Compensation reform, as well as thenew Administrative Citation Enforcement (ACE) program. The City Attorney's Officeresponded that staffing is adequate for both at this time, and that the Office is working onbringing Animal Services into the ACE program. The Committee asked various questionson Risk Management and the City Attorney's efforts to reduce the City's liability throughcase management and data analysis. Questions were raised regarding Proposition 47 andits impact on workload, to which the City Attorney responded that staffing is adequate andthe workload is currently at projected levels (19 percent increase in caseload). The Chairnoted the need for a Claims Analysis system for the City Attorney, and requested greateremphasis on summary judgment motions rather than taking matters to trial. The CityAttorney noted that their Claims Unit is focusing on resolving matters through settlementor through procedural motions before matters proceed to a jury.

While hearing the Bureau of Sanitation's budget discussion, the Committee focused oncore services, new revenue opportunities and service and technology innovations. TheCommittee was informed by the Bureau Director that the Solid Waste Franchise system ismoving forward with the launch on schedule for 2017. The Committee noted that theProposed Budget included 42 positions for Sanitation, with 36 of those dedicated to theFranchise Program. The Bureau noted that it is scheduled to have a short list of potentialvendors for the Franchise Service zones by August 2015. The Bureau also discussed apotential revenue enhancement if the Stormwater Pollution Abatement Charge wasincreased to fund Watershed Protection measures. The Bureau also announced theinitiation of the Sewer Construction Maintenance Financial Assistance Program. This pilotproject was moving forward through the Council approval process. The Bureau alsoannounced that progress was made from a year ago with DWP Billing revenues upconsiderably in March 2015. The Committee also noted that the Proposed Budget will fundthe Solid Waste Division to add 1,200 trash cans around the City.

The Bureau of Street Services reported that the Proposed Budget provides funding tocontinue the Pavement Preservation Program at 2,400 lane miles. The Committee discussedtree trimming activities and the Bureau's prioritization of service requests and the use ofcontract services. The Bureau was asked about contract tree trimming quality controlissues, as well as the cost of contractors and tree trimming coordination among Cityagencies. The Committee raised concerns regarding the current frequency of streetsweeping, which would continue at the same level in the Proposed Budget. The Bureaunoted that funding for median island maintenance is continued in the Proposed Budget.The Committee briefly discussed the complexities with improving alleys throughout theCity, as well as the difficulty of enforcing illegal dumping in the City's rights-of-way. The

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Bureau described its role in the new Sidewalk Repair program, noted the additionalresources provided in the Proposed Budget and reviewed some of the innovative techniquesand materials that may be used. The Committee strongly stressed the need to expeditiouslyundertake the sidewalk repair work.

The Bureau of Engineering discussed the need to fill vacancies for the numerous staff whowill be retiring next fiscal year. The Committee requested information on several localinfrastructure projects. The Committee also inquired about the resources needed to addressall B-permits and plan checks within 30 days, as well as the positive and negative aspectsof an enterprise fund for case processing.

The Controller began with an overview of some of the efficiency projects the Office hasimplemented during the previous fiscal year, both within the City including the My PayLA application, and citywide such as Control Panel and Utility Panel. In addition, theController highlighted the revenue generating proposals which have been included in theMayor's Proposed Budget and also addressed some of the concerns listed in his letter tothe Committee. The Committee discussed issues related to various Controller initiativessuch as open data, Buy LA and the accounting assistance program.

The Zoo Department discussions began with several questions from the CommitteeMembers regarding the Marketing Memorandum of Understanding between theDepartment and the Greater Los Angeles Zoo Association (GLAZA). Specifically, issueswere raised in comparing the reduction in paid admission revenue and whether themembership program is negatively affecting admission revenues. In addition, the impactof the $1 admission increase was questioned as a possible deterrent from paid admissionsales. The Committee and the Department agreed on the importance of maintaining a ratioof 1.9 as a recoup factor between the paid admission cost and the membership fee. Themembership fee discounts offered by GLAZA were questioned by the Committee andfurther reporting on the matter was requested. In closing, the Committee had concernswith the elephants and their care while in captivity, and the General Manager assured thatall restrictions and regulations are adhered to when caring for the animals.

The General Manager of the Depa t ent on Disability began by stating that the ProposedBudget provides funding for software and technology improvements to ensure the publichas access to department programs and services, and that the funding keeps the City incompliance with federal disability requirements and prevents litigation. The Committeeaddressed all six funding requests detailed in the Department's Budget letter. As part ofthat discussion, the Committee considered the impact of reduced Community DevelopmentBlock Grant (CDBG) funding and fully funding the Department's AIDS Prevention andTreatment Programs and the Computerized Information Center for the Disabled Program.The Computerized Information Center, described by the General Manager as the City'sface to the disabled community, provides useable information on housing, transportation,employment, recreational activities, and emergency shelter for the disabled, which thedepartment noted is the City's responsibility. The Committee discussed Disability's effortsto partner with other departments and the General Manager stressed the importance ofincorporating Disability into the City's large-project planning to ensure access

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requirements are addressed in the early stages of development. The Committee alsodiscussed the Americans with Disability Act (ADA) and Willits settlement sidewalkrequirements, including a discussion of the Department's proposed revenue generatingprogram to provide services to businesses and Chambers of Commerce relative to disabledaccess. The Department indicated that Video Remote Interpreting Services are expected tobe rolled out in all police stations in the coming months.

The General Manager of the Personnel Department advised that by 2017, 40 percent of theCity's workforce will be eligible for retirement and requested staffing and funding todevelop a citywide succession planning strategy. The Personnel Department stated that thisissue was the number one concern of the City's general managers. The Committeediscussed the impending loss of institutional knowledge and the urgency to act before thesechanges negatively impact the City's ability to train its employees, operate efficiently andprovide services. During the hearing, the Committee discussed the City's eight monthexamining backlog and the resources required to reduce or eliminate that backlog in thecoming years. The General Manager stated that the Department processed 140 examsduring the year, 100 exams are in process and 120 exams are pending. Additionally theCity received 53,000 job applications during the year. The Committee addressed the factthat the Proposed Budget assumes that civilian employees will pay 10 percent of theirhealthcare premium, and if these payments are not realized, the Budget would be negativelyimpacted. Department staff advised the Committee that Workers' Compensation fundingwas reduced to align with recent yearly expenditures. In light of the loss of City recordsin the Da Vinci fire, the Committee discussed the feasibility and costs of convertingPersonnel's original employee files to an electronic database. The Committee alsodiscussed processing applications for LAPD's Reserve Officer Program on the sametimeline as sworn officers.

While hearing the Ethics Commission's presentation, the Committee discussed the requestsprovided in the Ethics Commission's Budget letter including converting two resolutionauthorities to regular authorities and reclassifying depai tment positions. The ExecutiveDirector of the Ethics Commission advised that the requested regular authority positionswill be responsible for maintaining and updating the citywide contract database includingprocessing filings and ensuring compliance with legal requirements, and that the positionswill be necessary for as long as the database exists. The reclassifications are requested toproperly reflect job duties and will result in salary savings. The Executive Director advisedthe Committee that the Commission is working with the City Attorney to renegotiate itscontract with the Los Angeles Unified School District (LAUSD) to recover costs forservices related to LAUSD elections, and that the new contract would likely lead toincreased cost recovery after FY 2015-16. The hearing also included a discussion of theEthics Commission's role in City elections. The Executive Director advised that theCharter requires that many of its actions be conducted confidentially to prevent any unfairinfluence on the outcome of elections.

During its presentation to the Committee, the City Clerk highlighted its joint initiative withthe Department of Neighborhood Empowerment to provide Neighborhood Councilelections online The Committee discussed alternative funding methods for general

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benefits for the Business Improvement District (BID) assessment of City property withinBID boundaries, such as in-kind contributions. Also discussed was funding for theMunicipal Elections Reform Commission recommendations which aims to increase voterturnout and outreach, as well as details of the new Health Commission Trust Fund and itssupport of the new Commission Executive Assistant.

After brief opening remarks by the General Manager of the General Services Depaat,nent,the Committee discussed the Integrated Workforce Management System included in theProposed Budget as it pertains to the Department's upcoming efforts to inventory the City'sreal estate assets and procurement of a database system that will include updated andaccurate information. Additionally, the Committee discussed the possibility of replacingthe lawn at City Hall South with drought tolerant landscaping. The General Manageranswered questions about the Department's requests for funding related to Librarycustodial services support and former Los Angeles Convention Center positions. TheCommittee also touched on deferred maintenance of building equipment, savings fromenergy/water retrofits and turf replacement at fire stations.

During the discussion of the Police Department's budget, the Committee discussed theDepartment's expansion of the Metropolitan Division and how that expansion will affectpatrol division deployment across the City. The Committee also discussed theDepartment's hiring plan and its plan to hire detention officers. The Committee discussedthe effects of AB 109 and Proposition 47 on the City and its crime rate. The Chief of Policenoted that AB 109 has been in effect for three years now, and its impacts were now beingaddressed. The Police Chief indicated that crime is up since Proposition 47 was passed, butstated that he does not have the statistics proving that Proposition 47 is responsible for thiscrime increase. The Committee noted the need to look into what funding the City shouldbe receiving from the state as a result of Proposition 47. The Committee also discussed theDepartment's plan to purchase and deploy Body Worn Video Cameras on every patrolofficer in the City and requested information on the department's plan. The Committeealso discussed the Department's mental health training and specialized units and discussedthe possibility of offering more training to all patrol officers on dealing with individualssuffering from mental health issues. The Chief of Police noted that the Department partnerswith the County on mental health issues. The Committee also discussed police overtimeand ways to limit court-related overtime hours for sworn officers.

During the Planning Department's presentation, the Director noted that Planning isworking on 10 Community Plans. The Committee discussed the "re:Code LA" programwhich will update the City's outdated zoning code. The Committee discussed theDepartment's challenges in hiring, which the Department attributes to difficulties in gettingapproved civil service lists for new employees. The Planning Department stated it ismoving forward with web and technology innovations such as customer-friendly web toolsand portals to follow cases through other departments. The Committee also discussed theBuildLA system, a web-based innovation to improve service. The Proposed Budget alsoadded positions for the New Hollywood Community Plan and the Great Streets Initiative.The Planning Department noted its commitment to sustainability and the Mayor's

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Executive Directive by stating sustainability was already a major core function of theDepartment.

While discussing Building and Safety's presentation, the Committee discussed theDepartment's work on "soft story" buildings, noting that the Proposed Budget increasesfunding for the Soft Story Retrofit Program, and that a preliminary study found there are12,000 Soft Story Retrofit Buildings in Los Angeles. Building and Safety stated that theProposed Budget staffing levels should result in better performance metrics in caseloadmanagement. In addressing their backlog challenges, the Department stated that it offersweekend inspections for smaller residential projects to help prevent the backlog fromincreasing. Building and Safety's General Manager stated that they will also utilize retiredcode inspectors through substitute authorities to help with the code enforcement backlog.The Department also stated that they will expand the Haul Route Monitoring program byusing two existing Assistant Inspectors to review and respond to complaints in areas wherethere is extensive hillside development.

In his testimony, the General Manager of the City Employees' Retirement System(LACERS) gave an overview of the efforts to implement best practices, reduce costs andimprove investment returns to reduce the burden on the City's General Fund. The GeneralManager noted that they are taking a 'back to basics' approach with their investments andexplained the components of their portfolio and its performance. LACERS also noted itsinitiation of a wellness program targeted at retirees in an effort to reduce medical costs andsummarized various technology projects that are being implemented to improve efficiencyand customer service. In response to a question from the Chair, the General Manager notedthat LACERS investments have averaged 8.7 percent returns over the past 20 years andreturns of 10.2 percent over the past 30 years, both of which greatly exceed the assumedrate of return adopted by the LACERS Board. Members expressed concerns about theBoard's methodology and the impact to the City's General Fund of the Board's decisionsto assume a lower rate of return. The General Manager explained the components that gointo the analysis that is the basis of the Board's decision.

The General Manager of Fire and Police Pensions also gave an overview of the efforts toimprove efficiency, noting that they are currently replacing their pension administrationsystem and moving toward performance-based budgeting. The Chair asked the GeneralManager about the Pension System's historical rate of return, which has averaged 8.7percent over the past 20 years. The Chair and Committee members asked that the PensionBoard also consider past performance when deciding on an assumed rate of return for thePension System. The Chair and the General Manager both lauded the continued decreasein the Pension System's unfunded liabilities, as well as the decrease in the City's requiredpayment as a percentage of payroll.

The General Manager of the Information Technology Agency highlighted three majorconcerns regarding insufficiently or unfunded items in the Proposed Budget: the City'saging network, a cloud strategy for consolidation of data centers and the Department'ssalary savings rate. The General Manager elaborated on the Department's challenge infacing a rapidly increasing rate of retirements and the impact on retirement salary payouts.

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The Committee discussed the City's outdated software and applications, preventativemaintenance for public safety radio systems, transitioning from the mainframe to the Cloudand support for Police and Fire dispatch centers. The Committee inquired about the statusof upgrading the City's network and communications systems, the email Request forProposals (RFP), unfunded salary costs that impact supporting public safety systems,potential funding sources for a technology refresh program and the potentialreimbursement for services from special funds.

The Committee discussed the Animal Services Department's request to hire 24 AnimalControl Officers, rather than the 12 positions included in the Proposed Budget, in order torespond to public safety concerns such as dangerous dogs and to increase animal licensingand revenue. The General Manager of the Department estimated that there areapproximately 1.8 million dogs in Los Angeles and the City is below the industry licensingstandard rate. The Committee discussed the injunction on the Department'sTrap/Neuter/Return (TNR) Program relative to trapping, spaying and neutering feral catsand returning them to their trapped location. The Committee discussed the possibility ofconducting an Environmental Impact Report (EIR) with the potential outcome of liftingthe injunction on the TNR program implementation. The Department stated that cats andespecially feral kitten litters significantly limit the Department's ability to attain itsLive/Save Rate goal of 85-90 percent. The Department's live/save rate is approximately74 percent. The dog Live/Save Rate is approximately 83 percent and the cat Live/SaveRate is approximately 59 percent. The Committee discussed the Department's technologyenhancement requests including making its database entry more efficient and providinghandheld computers for field staff to provide access to the Department's data to resolveissues in the field, thereby saving resources and avoiding unnecessary impounds TheDepartment stated that it was hoping the Administrative Citation Enforcement (ACE)Program would be implemented in the coming months and that there are approximately 24offenses that will be cited for correction. The status of the Department's Reserve AnimalControl Officer Program was discussed, including improving outreach and advertisingefforts to recruit potential candidates.

The General Manager of the Department of Cultural Affairs and the Committee discussedthe inclusion of Airbnb as Transient Occupancy Tax (TOT) and whether the Departmentwould be allocated a percentage of the potential Airbnb revenue. The Committee agreedthat until a final Airbnb agreement is executed, the revenue should not be considered forallocation. The General Manager clarified that each year the Department's budget receivesan estimate of TOT rather than an actual number, and no adjustments are made at year end.Therefore, if actual figures are higher than those estimated, which is often the case, theDepartment does not receive additional revenue. The Department explained the newlyproposed Arts Activation Fund with small grant awards from $2,500 to $5,000 for citywideprograms such as Great Streets and CicLAvia. The Committee noted that although thelook of Los Angeles Airport is improving, more work is necessary to reflect the City's artand culture. The General Manager reported that significant work was done in the TomBradley Terminal, and the Department plans to continue improvements throughout otherterminals. During the discussions regarding the transition of Channel 35 programmingfrom the Information Technology Agency to the Depaitment, the General Manager was

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enthusiastic about commencing discussions on the matter and having access to thechannel's digital platform. The Department updated the Committee on the ArtsDevelopment Fee (ADF) and the status of expenditures. The General Manager stated thatadditional public art staffing is critical to timely ADF spending.

The General Manager of El Pueblo de Los Angeles stated that the Department does notrely on the General Fund, as it continues to generate enough revenue through parking fees,rental fees and facilities use fees. The Committee discussed financing for automatedparking lots, as well as vacancy rates at El Pueblo. In addition, the Committee discussedthe status of the move of Channel 35 and its impact on the operations of El Pueblo.

The General Manager of the Department of Neighborhood Empowerment advised theCommittee that, in order to assist Neighborhood Councils (NC) in the past year,Department staff provided 85 retreats and training sessions for the boardmembersthroughout the City as well as implemented a code of conduct for all 1,800 NCboardmembers. The Department also reviewed and posted approximately 3,000 NCagendas, conducted 115 reviews of special events, 210 reviews of grants and approximately6,000 banking transactions. The Committee addressed the Department's online voting pilotprogram, which may include 50 NCs, and what constitutes voter eligibility. The definitionof a voter is currently defined as ongoing and substantial, and the Committee discussed theimpact of clarifying this definition by the upcoming 2016 NC elections. The Committeealso discussed restoring the NC Funding Program which currently provides $37,000 toeach of the 96 NCs.

The General Manager of the Department of Aging provided opening remarks about theDepartment's various programs and services, noting that seniors are one of the fastestgrowing populations in the City of Los Angeles. The Department serves over 250,000seniors annually either by Department staff or contractors through a managed network ofsupport services. The Department also serves nearly 12,000 seniors per day through itscitywide senior nutrition program. Currently, the Department is focusing on three criticalareas: 1) development and implementation of a performance outcome process to track theimpact of services on the clients served; 2) partnerships with local managed care plans totake advantage of the changes that are taking place within the healthcare environment; and,3) support to third-party service providers. The Committee discussed Evidence BasedHealth Programs and the federal government's stalled funding through the OlderAmericans Act and the potential elimination of the Los Angeles Unified School District'sOlder Adult Education Program.

With the Emergency Management Department, the Committee discussed the Department'srequest for funding to upgrade its hardware and the need for continual maintenance ofcritical technology systems at the Emergency Operations Center. The Committee furtherdiscussed the Department's progress on ensuring that the Emergency Plan meets ADArequirements, and that it is accessible to individuals with access and functional needs. TheCommittee also discussed the Department's role during the upcoming Special Olympics,with the Department requesting funding to staff the Emergency Operations Center for theweek before, the week of, and the week after the Special Olympics this summer.

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The President of the Board of Public Works opened the discussion by indicating that theBoard has remained focused on "back to basics" priorities over the past year including thepavement preservation program, sidewalk repair program, Clean Streets Initiative andPublic Works procurement policies. The Committee discussed the graffiti abatementprogram and how the City could make up the difference in the total program fundingreduction. The Committee also expressed concern regarding the proposed deletion offunding for one Senior Management Analyst II position which supports Project Restoreand inquired as to how other funds can be utilized to increase services for tree trimming,or other public works functions.

The Bureau of Street Lighting provided an update of the Light Emitting Diode ConversionPhase II Program and the High Voltage Conversion Program and discussed the need foradditional resources for each program. The Committee asked about the benefits of the Co-Location Small Cell Communication Program and details relative to the expansion of theSolar to Grid Pilot Project. The Committee discussed the status of copper wire theft andthe effectiveness of the City's proactive measures in the Proposed Budget.

The Inspector of Public Works/Director of Contract Administration began by explainingthat the Bureau of Contract Administration strives to maintain a transparent and consistentcontracting environment by enforcing contract provisions for capital improvementcontracts, which are worth $12B. Additionally, the Inspector also stated that the Bureauhas worked vigorously to reduce Minority Business Enterprise (M.B.E.) and Women'sBusiness Enterprise (W.B.E.) certification backlogs by over 22 percent, reduced businessinclusion review time by over 67 percent and preserved local hiring. Committee membersasked questions regarding wastewater compliance inspections and how the Bureau hasworked to make M.B.E./W.B.E. tracking available to the public.

The General Manager for the Economic and Workforce Development Department(EWDD) began with an overview of the Department's mission and work includingmanaging a loan and bond portfolio totaling over $800M in pre-development, stabilized orcompleted construction projects and administering $45M in Workforce Investment Actfunds through a network of providers, comprised of 17 WorkSource Centers and 13YouthSource Centers. EWDD described efforts to match youth with employmentopportunities. EWDD stated the Proposed Budget will enhance and expand its economicdevelopment functions and noted that the proposed additional $1M funding will create newreal estate management functions, including relocation, property management, planningand development. EWDD noted its goal to carry out the Great Streets Initiative next yearin five Council Districts, which will serve as a model for other Council Districts in thefuture. The Committee requested a report with recommendations for the use of $2.5Mwhich was set aside in the Unappropriated Balance during FY 2013-14. The Committeeasked EWDD about resources and next steps in analyzing and implementing EnhancedInfrastructure Financing Districts and opportunities to leverage and create new economicdevelopment opportunities. The Committee also requested a report on the impacts of

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decreased funding for the Day Laborer Program, Hire LA, Cash for College and possiblesources to restore funding for those programs.

The Housing and Community Investment Department (HCID) General Manager began hispresentation by noting the importance of the Proposed Budget's $10M commitment to theAffordable Housing Trust Fund (AHTF) and funding for Domestic Violence ShelterOperations. HCID highlighted its request for additional funding for Commission supportstaff and additional funding for non-profit-managed Family Source Centers. TheCommittee requested a report on the impacts of decreased funding for FamilySourceCenters. The Committee discussed major issues surrounding affordable housing andhomelessness. HCID updated the Committee on the proposed covenant fee ordinance,indicating that a report on the matter is pending before the Housing Committee. TheCommittee requested a report on the resources needed to monitor all SB 1818 affordableunits and anticipated loss in revenue associated with not implementing the fee ordinancein a timely manner. The Committee discussed impacts of short-term rentals, the Ellis Act,Rent Stabilization Ordinance units being bought out by owners and units taken off themarket by the City for non-compliance with code. The Committee requested a specialstudy on Rent Stabilization Ordinance units and buy-out agreements. In discussing effortsto address homelessness, the Committee discussed the need to do things differently andpossibly having to reallocate resources during the year as well as having to identify apermanent revenue stream to address homelessness. The Committee requested a report onpermanent funding alternatives for Domestic Violence Shelter Operations. The CLAinformed the Committee that the forthcoming report will address programs being fundedwith General Fund, including the Domestic Violence Shelter Operations. In the currentyear, General Fund was allocated to make up the needed difference for several programs.Regarding one-time funding for programs, this will be the second year that severalprograms will receive one-time funding for programs that are not eligible for CommunityDevelopment Block Grant funding. Whereas some of these programs may be high priority,the CLA stressed that a policy decision must be made as to whether General Fund willcontinue to fund these programs, or in the absence of funding, whether they will continue.

The Committee began by asking the Executive Director of the Department of Conventionand Tourism Development about how the expiration of the contract with AnschutzEntertainment Group (AEG) for a proposed football stadium has impacted ConventionCenter operations. The Executive Director responded by stating that $750,000 which wasput forward by AEG and Plan B provided for an opportunity to develop a design and overallstrategy for the redevelopment of the Convention Center, which would result in a morecompetitive convention center and hotel accommodations and would ultimately producemore revenue than the development of a football stadium. Additionally the Committeediscussed potential marketing and signage on the roof of the Convention Center, as well asthe $6M proposed solar plan which is contained in the Proposed Budget.

At the outset of the Coalition of City Unions' presentation, Councilmember Englandernoted that during the tenure of Chairperson Krekorian, the Coalition of City Unions hasbeen offered the opportunity to formally present its findings and recommendations on the

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Mayor's Proposed Budget directly to the Budget and Finance Committee. The Coalitionnoted that they believe that the Proposed Budget moves the City in the right direction, butindicated they have some concerns over some aspects of it. The Coalition presented a reportwith the "Fix LA Coalition," and recommended that the City use some of the Reserve Fundto address hiring and service shortfalls. The Coalition made recommendations based onmaximizing revenues before making cuts, restoring positions lost during the GreatRecession and working to provide good paying jobs for all Angelenos.

The Neighborhood Council Budget Advocates then made a presentation to the Committee.The Budget Advocates stated that they have taken on a much larger role, and their reportthis year is more detailed than those in the past. Their report covered some major themes:repairing, replacing and upgrading infrastructure; the modernization of communication andinformation management systems; streamlining of the hiring process; and, creation of apermanent inspector general position. The Budget Advocates discussed these issues indetail, as well as other aspects of the City's budget, such as revenue, workers compensationissues and specific parts of many of the budgets of individual departments.

Highlights of the CAO's budget were presented as follows: a Transparency and SpecialProjects officer has been added to handle press inquiries and California Public Records Actrequests, and additional funding for contractual services has been included for a Fuse CorpsFellow to study new solutions to various City problems. Committee members askedvarious questions pertaining to petroleum exploration and production on City propertythrough the CAO's Proprietary Analysis program, the grants management database, andfunding levels for Department of Water and Power (DWP) rate increase studies in theOffice of Public Accountability.

The CAO explained that the General City Purposes (GCP) includes funds for contracts andprograms administered by various departments. The CAO also indicated that the GCP hasincreased by approximately 25 percent this year and subsequently highlighted items whichhave received funding increases and decreases. The Committee asked various questions,such as whether there is a need for a new position for the Promise Zone designation, or ifan existing position could be used. In addition, the Committee discussed issues related tothe appropriation for the Homeless Shelter Program and the Homeless Services forVeterans programs. The CAO was directed to report on several follow-up issues raisedduring the Committee hearing.

The CAO presented the Unappropriated Balance (UB), outlining the importance of themid-year budget adjustments line item and answering questions on each item included inthe UB. The Committee also asked the Deputy Mayor for his views on the UB. TheMayor's Office agreed with the CAO on the importance of the UB mid-year adjustmentsline item, but also stated concerns about including important programs as line items in theUB can delay their implementation.

The CAO's Office then answered questions from the Committee Members on the ReserveFund. The Proposed Budget Reserve Fund is $305M, which is 5.65 percent of the ProposedGeneral Fund revenue, and exceeds the City's Financial Policy goal of five percent.

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CAO staff provided an overview of the City's MICLA program, through which the Cityissues non-voter-approved debt. This program is administered by the CAO through theCapital Finance Administration Program. The Proposed Budget recommends a $235.5Mallocation to MICLA debt service, $4.5M less than the last fiscal year. The CAO stated that$115.7M in MICLA financing is included in the Proposed Budget for capital improvementsto City facilities, improvements to the Convention Center, and Capital Equipmentpurchase. The CAO stated that his Office will be studying long term strategies to purchaseequipment in new ways, instead of utilizing MICLA. The Committee discussed MICLA'scapacity, how much debt the City has through the program and what MICLA fundingwould be used for in the next fiscal year.

The CAO provided a brief overview of the Capital Improvement Expenditure Program(CIEP) and explained that this program provides funding for all construction andimprovements of permanent facilities throughout the City. The CIEP budget is dividedinto three sections: Municipal Facilities, Physical Plant and Clean Water. The total CIEPbudget for FY 2015-16 is approximately $277M, an increase of $68M from 2014-15. TheCIEP budget funded by the General Fund exceeds the Capital and Infrastructure FundingPolicy's one percent target of General Fund revenues, resulting in 1.39 percent or $74.7M.The Committee discussed how the infrastructure funding policy works in conjunction withthe City's other financial policies and the prioritization of those respective fundingallocations. Additionally, the Committee inquired about the infrastructure funding policiesof other municipalities and requested the CAO to conduct a comparative analysis. TheCommittee further discussed the potential for creating a virtual and technologicalinfrastructure policy to address the City's technology needs.

The CAO noted that the City will once again be issuing a Tax and Revenue AnticipationNote (TRAN) of approximately $1.077B. Proceeds from this TRAN will be used to prepaythe City's Pension obligation for sworn employees ($634M) and LACERS obligation forcivilian employees ($439M). The City also plans to use a portion of the proceeds ($4M)for cash flow purposes. In response to a question posed earlier in the hearings byNeighborhood Council Budget Advocates, the CAO explained why the City issues a TRANand the benefits to the City. The 2015-16 IRAN is expected to generate savings of $36Mfrom a discount for prepaying the City's pension and retirement obligations. The CAOalso explained that the City's efforts to educate investors have been successful, inasmuchas last year's TRAN was sold for 11 basis points, which is the lowest in the City's history.Members asked about the net savings anticipated from next year's TRAN ($21M) and if itis feasible to adjust the timing of the City's revenue sources to minimize the need for futureTRAN issuances. The CAO noted that timing for most of the City's major revenue sourcesis controlled by the State or the County of Los Angeles, or restricted by the City Charter,with the exception of the City's business tax payment schedule. The CAO committed toreview the timing of the City's major revenues sources beginning in 2016-17, given theend this year of "triple flip" payments involving sales and property tax revenues.

The CAO provided an overview of the instructions that the Mayor included in Exhibit Hof the Proposed Budget. The CAO noted that Exhibit H instructions are typically limited

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to those needed to implement the budget, but the Proposed Budget included a total of 40Exhibit H instructions, of which only 12 are required for budget implementation. The CAOstated that the remainder are policy proposals for Council's consideration. The CLAclarified that the Budget & Finance Committee has historically asked the CLA to reviewall of the Exhibit H instructions and clarify those that are actually needed for budgetimplementation. The Chair endorsed this approach with regard to the 2015-16 instructions.Members expressed interest in many of the policy proposals, including the HollywoodBowl shuttle, the proposed changes to the Telecommunications Development Account, theagreement on short-term rentals, the new abandoned waste reporting program, and theproposed overhaul of the street sweeping program. Members also expressed concerns aboutthe Mayor's proposal to transfer Channel 35 into Cultural Affairs from the InformationTechnology Agency and suggested improvements to the processing of permit parkingrequests and stronger enforcement against placard misuse. A request was also added for astudy of the FAST proposal for a peak traffic lane at Van Owen and Victory.

Budget and Finance Committee Recommendation

On May 12, 2015, the CLA presented to your Budget and Finance Committee a reportoutlining recommended changes to the Mayor's Proposed Budget for FY 2015-16. Thechanges were in response to specific directions from the Committee and instructions to theCLA's Office to evaluate areas of concern and provide recommendations to address thoseissues.

The CLA indicated that the Proposed Budget recognizes a General Fund deficit of $165Mfor FY 2015-16. This figure represents a decline in the anticipated deficit due to structuralchanges adopted over the past few years, including a reduction of the City workforce,savings achieved through agreement with the City's labor partners, reductions in variousexpenditures, and improvements made in billing and collections. Additionally, in 2011voters approved Charter Amendment G which established a new pension tier for swornpersonnel, helping to mitigate rising long-term pension costs. A new Pension Tier for theCity's civilian workforce was approved by the Mayor and City Council in November 2012and went into effect on July 1, 2013.

The CLA notes that, through fiscal restraint and prudent application of financial policies,the City's Reserve Fund was built to the highest level ever and a Budget Stabilization Fundwas established and funded to help moderate the impacts of economic downturns. Whilethese efforts have reduced the projected deficit dramatically -- in 2010, the projected deficitfor FY 2013-14 was anticipated to be in excess of $1B -- a structural deficit remains and isprojected to remain for the next few fiscal years.

The CLA notes that there are other future year issues that need to be addressed. Revenues,primarily documentary transfer tax, sales tax, transient occupancy tax, parking fines andutility users' tax, should be carefully tracked to ensure that projections are met. There arealso deficits embedded in the budgetary figures for certain depai tments. These include theFire Department Dispatch Center operations and a one-time salary reduction that is applied

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to most departments which will require careful management to meet budgetary constraints.There are other assumptions built in which may require adjustment mid-year. For example,the Proposed Budget assumes no further salary increases for civilian employees and thateach civilian employee will contribute 10 percent of the subsidy for employee health carein 2015-16. On the revenue side, the Proposed Budget anticipates several sources whichare at risk, including settlement with a cable franchise company, reimbursement for statemandates and an agreement with a short-term rental booking agency. The City must alsocontinue to monitor and solve future year structural deficits that exist in other major funds.These include the Proposition C, Measure R, Street Lighting Maintenance and AssessmentFund and the Stormwater Pollution Abatement Fund. The CLA states that these issues needto be addressed in the near term.

The CLA recommends a variety of changes to the Proposed Budget. The expenditurechanges contained in the CLA's recommendations are limited to those which are of thehighest priority identified by the Budget and Finance Committee, meet the City's FinancialPolicies and bolster reserves for future economic downturns. These changes include:

• Provision of additional funding for public safety-related expenditures including: FireSafety equipment ($1M), Fire-related technology improvements ($.850M), resourcesto reduce the fingerprint backlog for the Police Department ($.500M) and other Fire-related services ($4.5M).

• Appropriation of funds included in the Proposed Budget for two additional Firefightertraining classes ($4.5M).

• Provision of resources to the Personnel Department to reduce the backlog of exams($1.23M), establish a Succession Planning Unit and related software ($.509M) anddigitize Personnel records ($.081M).

• Restoration of funding for various programs for which Community Development BlockGrant Funds are no longer available. Funds included in the Unappropriated Balance aretransferred to the relevant Departments. Programs include: Aging Evidence BasedHealth Programs ($.531M), AIDS Programs ($.590M), Computerized InformationCenter ($.175M), Day Laborer Program ($.750M), various Youth programs ($.907M),Domestic Violence Shelters ($1.1M), FamilySource Centers - City run ($1.0M),FamilySource Centers - non-profit run ($.820M) Project SAVE ($.548M), Commissionsupport ($.059M), Graffiti Removal ($.693M), Clean and Green Program ($.751M)and LA River Corps ($.180M).

• Appropriation of resources included in the Proposed Budget for tree trimming ($2.5M).

• Provision of funding for various Department on Disability programs ($.260M).

• Provision of funding various technology-related programs. CommunicationsElectricians supporting the Police and Fire Dispatch Centers ($.434M), 311 Customer

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Relationship Management System ($.955M) and Department of TransportationCommunication Center ($.131M).

• Provision of funding for public safety radio tower maintenance ($.275M).

• Set aside of funds for Neighborhood Council funding ($.480M), to be allocated inaccordance with recommendations to be developed by the Department ofNeighborhood Empowerment and approved by the City Council. Provision ofadditional resources to the Department of Neighborhood Empowerment to support theNeighborhood Council Funding Program ($.129M), online voting ($.275M) anddevelopment of a new rollover policy.

• Restoration of funding for the Neighborhood Conservation Program in the CityPlanning Department ($.182M).

• Set aside of funds for wage theft enforcement ($.659M) and contingency funding for asidewalk vending program currently under discussion ($.500M).

The CLA's additions are made possible by the CLA's identification of additional netrevenue in the amount of $50M. In addition, various changes were made in departmentalbudgets to recognize the use of special funds, reductions based on anticipated savings, andother adjustments.

The CLA noted that the recommendations addressed the most critical areas discussedduring the Committee hearings, but urged that the majority of the newly identified GeneralFund revenues ($37M) be placed in the City's reserves. The CLA expressed that this wasimportant because of the City's structural imbalance with deficits projected through thenext three years, litigation threats to City revenue streams and expenditures, the prospectof an eventual slowdown in the economy and the loophole in the Budget Stabilization FundPolicy which has resulted in the Fund not receiving the full amount it is due. The CLA alsonoted that the Proposed Budget already utilizes over $200M in one-time funds that couldhave been placed or remained in reserves to instead balance the budget and begin restoringservices. The CLA stressed the importance of building the City reserves as it would benefitthe City, its workforce and residents in future years.

Your Budget and Finance Committee unanimously approved the CLA's recommendedchanges to the Mayor's Proposed Budget, with all additions, as well as those approved atthe May 12 meeting, noted in Attachment 1. The Committee discussed in great detailincreasing the Budget Stabilization Fund to a higher level than proposed by the CLA. Thenet result of the above actions will add: $9.05M to the Mayor's Proposed Reserve Fund,bringing the balance of the Reserve Fund to $313.5M; $20.1M to the Mayor's ProposedBudget Stabilization Fund, bringing the balance of the BSF to $92M, its highest level; andan additional $7M to the Unappropriated Balance - Reserve for Mid-year Adjustments, fora total of $17M. The Committee further set aside allocations within the latter to provide$1M for homelessness issues and $500K for departments to access for sustainabilityprograms.

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Respectfully submitted,

Paul Krekorian, ChairBudget and Finance Committee

Bob BlumenfieldCouncilmember, 3rd District

Paul KoretzCouncilmember, 5th District

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tchell EnglCouncilmember, 12 District

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CrMike BoninCouncilmember, 11th District

Attachment 1

Budget and Finance Committee Recommendations onthe Fiscal Year 2015-16 Proposed Budget

That the City Council (Recommendations 1-10, 103-111, 137-138, and R1-R67):

Global Recommendations

1. Labor Negotiations. Discussions with bargaining units have resulted in agreements whichhave made structural improvements to the City's budget. The City Administrative Officershould continue these negotiations with instruction from the Executive Employee RelationsCommittee and develop solutions which balance the need to reduce costs in the short-term,but not at the expense of long-term impacts on future year costs, including the pension funds.Much progress has been made recently with our labor partners in this regard. Opportunitiesto continue this momentum will be present over the course of the next few months and intocoming year.

2. Infrastructure. The Budget and Finance Committee expressed concern regarding the yearsof deferred capital infrastructure improvements and the lack of a long-term infrastructureplan. Our recommendations include the addition of funding for some higher priority capitalitems identified by Committee members, as well as modest increases in funding formaintenance on City facilities and one-time technology needs.

Evaluating Budgetary Compliance and Control

The following budgetary reporting process and protocols are recommended to assist the Budgetand Finance Committee in its efforts during the fiscal year and on a go-forward basis:

Instruct all departments with pending fee increases that are included in the Proposed Budget,with the assistance of the City Attorney, to report to Council no later than June 30, 2015 withordinances to effectuate the change in fees. This is to ensure that estimated revenue includedin the 2015-16 Budget is realized, in accordance with the Annual Fee Studies Policy. Further,instruct all departments to review their fee structures annually and to report to the Budget andFinance Committee by January 1, 2016 with ordinances, status reports or negative repliesconcerning fee adjustments for the 2016-17 fiscal year.

4. Instruct all City department and bureau heads to promptly notify the CAO of shortfalls intheir budget or revenues so that they may be reported in the CAO's financial status reports.

Page 1 of 28

5. Instruct the CAO to continue to provide quarterly or more frequently, if necessary, financialstatus reports on revenues and expenditures, the status of the Reserve Fund, status of theBudget Stabilization Fund, projected shortfalls and all other elements previously included bythe CAO in these financial status reports. The reports should include recommendations toprotect the City's fiscal health.

6. Instruct the CAO to provide an update to the Four-Year Outlook following adoption of the2015-16 Budget by the City Council and Mayor. This update may include recommendationsto revise the City's Financial Policies to ensure that they align with stated budgetary goalsand are not in conflict with one another.

7. Request the City Attorney to report on a quarterly basis to the Budget and Finance Committeeon the status of liability claims and outside legal counsel costs, the latter to include proprietarydepartment expense. Such reports to include the following: available balance; encumberedbalance, expenditures to date; projected needs for balance of fiscal year; and, if more fundsare needed, specify the corrective actions being taken to contain costs.

Financial Policies Compliance

That the City Council makes the following findings with regard to the 2015-16 ProposedBudget's compliance with the City's Financial Policies:

8. Capital and Infrastructure Funding Policy: The Capital and Infrastructure Funding Policystates that "To the extent possible, the City shall annually budget one percent of General Fundrevenue to fund capital or infrastructure improvements." The Mayor's Proposed Budgetprovided $74.7M for capital projects and infrastructure improvements, which equates to 1.39percent of General Fund reserve according to the CAO Supporting Documents. It should benoted that compliance with this policy was used to offset the required transfer of excessreserves to the Budget Stabilization Fund.

9. One-Time Revenue For One-Time Expenditure Policy: The City's Budgetary Policies statethat, "To the extent possible, current operations will be funded by current revenues. The useof unencumbered prior year balances in all finds shall be scrutinized and carefully limited tobe used primarily for one-time expenditures. One-time revenues will only be used for one-time expenditures. The City will avoid using temporary revenues to fund on-going programsor services." The Mayor's 2015-16 Proposed Budget includes $156.0M in one-time revenueand includes identifies $156.2M in one-time expenditures, suggesting that $0.2M is forongoing expenditures.

One-time revenues are anticipated from a transfer from the Reserve Fund ($80.0M), receiptof Sales Tax replacement funds as a result of the end of the "triple flip" ($37.8M), ananticipated settlement of an ongoing franchise fee dispute ($5.2M) and a transfer of surplusSpecial Parking Revenue Funds ($33.0M, with an additional $23.5M considered ongoingrevenue). Therefore, there is $0.2M in one-time financial resources supporting ongoingexpenses.

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10. Budget Stabilization Fund: As part of the 2008-09 Budget, the Council approved, in concept,a new chapter to the City's Financial Policies to create a Budget Stabilization Fund (BSF).The intent of the BSF is to moderate fluctuations in revenue, prevent overspending duringprosperous years, and provide resources to help maintain service levels during lean years. InMarch 2011, the voters enacted Measure P, which codified the requirement to create such aFund.

The Council adopted a formal BSF policy by ordinance which is incorporated into the City'sFinancial Policies. This policy requires saving when the economy is strong and actualrevenue exceeds the projected revenue targets, restricts expenditures from the Fund to nomore than 25 percent of the Fund in any one fiscal year during which there is no declaredfiscal emergency, and would allow the City to use funds which are in excess of 15 percent ofthe General Fund budget for one-time uses. In 2009-10, $500,000 was initially depositedinto the BSF. Through various actions by the Council and Mayor since 2012-13, theanticipated balance in the Fund at the end of the current fiscal year is projected to be $64.5M.The Mayor's Proposed Budget transfers a total of $6M into the Fund, leaving the currentbalance, plus interest, for a projected 2015-16 amount of $71.5M. Because revenues areanticipated to increase in the 2015-16 fiscal year, application of this policy would haverequired a transfer into the Fund of $61M, per the CAO's calculation. The Proposed Budgetcites compliance with the one-percent capital and infrastructure policy as the reason for notmaking this transfer.

That the Council, subject to the approval of he Mayor (Recommendations 11-102 and 112-136, only):

11. Reserve Fund: Your Budget & Finance Committee recommends actions contained in thisreport that will increase the Reserve Fund by $9.005M relative to the Mayor's ProposedBudget to a total Reserve Fund of approximately $313.451M or 5.8 percent of the GeneralFund. These actions will revise the actions in the Proposed Budget by reducing the transferfrom the Reserve Fund to the General Fund from $80M to $59.156M. The 2015-16Emergency Account of the Reserve Fund is set at 2.75% or $148.678M with the remainingbalance of $164.773M in the Contingency Account.

12. Budget Stabilization Fund: Your Budget & Finance Committee recommends a transfer of$26.94M from the Reserve Fund into the Budget Stabilization Fund, and elimination of theinstruction in the Proposed Budget that would have transferred $6M from the General Fundto the Budget Stabilization Fund. Approval of these actions will result in a net increase tothe Budget Stabilization Fund of $20.94M, leaving the BSF with a balance of approximately$91.9M.

Page 3 of 28

Revenue Changes

Licenses, Permits, Fees and Fines 13. Recognize additional receipts from Library based on updated related costs reimbursements,

consistent with Measure L, to be funded with savings available in the Library's Unreservedand Undesignated Fund Balance (UUFB) with no impact to the Library's 2015-16 ProposedBudget.

$1,969,000

14. Revise related cost receipts from Proprietary Departments based on updated related costreimbursement rates.

$5,759,000

15. Revise related cost receipts from various Special Funds based on updated related costreimbursement rates. This will increase and decrease several Special Funds, resulting in anet increase to the General Fund.

$8,923,000

16. Recognize additional related cost reimbursements from Recreation and Parks as a result ofsavings from revised opening dated for new/expanded facilities.

17. Add receipts for Alternative Fuel Rebates.

18. Add proprietary department reimbursements for helicopter maintenance costs.

19. Recognize 2014-15 receipts from the sale of surplus property.

$150,000

$200,000

$200,000

$1,000,000

20. Increase Police grant receipts based on a new agreement with the Housing Authority,pursuant to CF15-0355.

$250,000

21. Recognize additional related cost reimbursements as a result of increased programming inthe Bureau of Street Lighting.

$122,000

Power Revenue Transfer 22. Recognize additional receipts based on projected power sales.

$2,300,000

Page 4 of 28

Property Tax 23. Recognize additional receipts based on market trend of increased growth in assessed property

values.$12,500,000

Reversions to the Reserve Fund 24. Recognize additional General Fund reversions since the release of the Proposed Budget.

$12,500,000

State Gas Tax 25. Reduce receipts based on revised estimates from the State.

($1,300,000)

Utility Users' Tax 26. Electric Users Tax. Increase 2014-15 receipts based on the current collection rate ($2.7M).

Further, increase 2015-16 delayed Utility Users' Tax receipts to recognize revenues ($2.9M).

$5,600,000

Expenditure Changes

City Clerk27. Add funding in order to pay for general benefits associated with the City's Business

Improvement District program.$433,000

28. Community Based Development Organizations and Community Development Block GrantPrograms.

The following programs require General Fund assistance due to decreases in availableCommunity Development Block Grant funds. These programs were formerly funded orreceive partial finding through the CDBG or other public service programs.a. Aging

i) Increase funding for the citywide network of Evidence Based Health Programs.$531,000

b. Disabilityi) Reduce the line item in the Unappropriated Balance entitled "AIDS Programs"

($590,000) and add a like amount to the Disability Department to properly reflectthe appropriate department for receipt of these funds.

-$0-

ii) Add funding for the Computerized Information Center.$175,000

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Economic and Workforce Developmenti) Reappropriate funds in the Economic Development Fund and utilize a portion to

provide for various programs designed to support jobs for youth and other work-related efforts.

($1,000,000)

Increase funding for the Cash for College Program.$49,000

iii) Increase funding for the Hire LA 16-24 Youth Empowerment Program. Thisfunding will provide jobs for 1,772 youth who are not eligible for federalworkforce funding.

$285,000

iv) Provide additional funds for the Day Laborer Program to allow continued fundingfor seven Day Laborer sites.

$500,000

v) Reduce the line item in the Unappropriated Balance entitled "Day LaborerProgram" ($250,000) and add a like amount to the Economic and WorkforceDevelopment Department to properly reflect the appropriate department for receiptof these funds. Funding is for two Day Laborer sites.

-$0-

vi) Add funding for the Youth Opportunities Movement - Boyle Heights and WattsYouthSource Centers.

$573,000

d. Housing and Community Investmenti) Reduce the line item in the Unappropriated Balance entitled "Domestic Violence

Shelters" ($1,100,000) and add a like amount to the Housing and CommunityInvestment Department to properly reflect the appropriate department for receiptof these funds.

-$0-

ii) Reduce the line item in the Unappropriated Balance entitled "Family SourceCenters" ($1,000,000) and add a like amount to the Housing and CommunityInvestment Department to properly reflect the appropriate department for receiptof these funds for City-run Family Source Centers.

-$0-

iii) Provide additional funds for non-profit run Family Source Centers to allow thenecessary level of funding for 16 existing Family Source Centers.

$820,000

Page 6 of 28

iv) Increase funding to fully fund the Project SAVE program.$548,000

v) Add resolution authority and nine-months funding for one Project Assistant tosupport various Commissions. This is an exempt position and is contingent uponMayor and Council approval of the exemption. ($38,311 direct cost/$20,689indirect cost).

e. Public Works - Boardi) Add funding for the Graffiti Removal Program.

$59,000

$693,000

ii) Add funding for the Office of Community Beautification to fund the Clean andGreen program.

$751,000

iii) Add funding for LA River Corps.$180,000

f Instruct the City Administrative Officer, with the assistance of the Housing andCommunity Investment Department, Department of Aging, Department on Disability,Economic and Workforce Development Department, Board of Public Works and theChief Legislative Analyst to identify permanent sources of funds for these programs. Inthe absence of alternate sources, request the Mayor to include in future ProposedBudgets the necessary funding to continue these high priority programs.

Controller29. Reappropriate up to $300,000 in 2014-15 savings to correct an error in the Proposed Budget

regarding the 2015-16 Salary Step Plan and Turnover Effect, partially offset by special funds.($8,000)

Disability30. Add resolution authority and nine-months funding for one Project Coordinator ($55,859

direct cost/$25,970 indirect cost) to be a Certified Access Specialist to implement ADArequirements. This is an exempt position and is contingent upon Mayor and Council approvalof the exemption.

$81,829

31. Add funding for contract services for three ADA Assistants to provide reasonableaccommodation for City employees.

$96,000

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32. Add position authority and nine-months funding for one Project Coordinator ($55,859 directcost/$25,970 indirect cost) to fulfill the duties of an ADA Coordinator for emergencymanagement aspects of homeland security and public safety. This is an exempt position andis contingent upon Mayor and Council approval of the exemption.

$81,829

33. Funding to provide contract services for Video Remote Interpreting citywide is available inthe Forfeited Assets Trust Fund. No additional funding is required.

-$0-

Emergency Management 34. Add overtime funding for EMD to support the Special Olympics to be held in Los Angeles

in July 2015.$38,000

35. Add funding to the Emergency Operations Fund for the maintenance of audio/visualequipment in the Emergency Operations Center.

$400,000

36. Add regular authority and 12-months funding for one existing Secretary currently employedin substitute authority, and add regular authority and nine-months funding for one PrincipalProject Coordinator. Both positions are to assist with preparedness programs for persons withdisabilities. The Principal Project Coordinator is an exempt position and is contingent uponapproval by the Mayor and Council of the exemption ($139,951 direct cost/$63,491 indirectcost).

$203,442

Fire37. With regard to Fire Technology:

a. Add funding for the Geographic Move Up System which would automate the fire stationcoverage map and link to the Computer Aided Dispatch and Automatic Vehicle LocatorSystem.

$200,000

b. Add funding to the Department's Operating Supplies account to continue the annuallicenses, system upgrades and maintenance for the Automatic Vehicle Locator (AVL)System.

$280,000

c. Add funding to the Department's Operating Supplies account for Business OperationsSoftware to replace outdated and unsupported software.

$340,000

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d. Add funding to the Department's Operating Supplies account for software license feesand a maintenance agreement related to the Tiered Dispatch System.

$30,000

38. Add funding to purchase a second set of turnouts. This funding is for year two of a five-year replacement plan.

$1,003,738

39. Reduce Sworn Salaries ($5,000,000) and increase Constant Staffing Overtime by acommensurate amount based on historical spending patterns.

-$0-

Fire and Police Pension Fund 40. Adjust pension contribution based on budgeted sworn salaries.

($2,326,000)

General City Purposes 41. Revise allocations to reimburse the Solid Waste Program based on current participants plus

the enrollment of all eligible households on the Bureau of Sanitation's wait list.($100,000)

General Services 42. Add funding to support 15 unfunded positions transitioned from the Convention Center in

fiscal year 2014-15.$539,000

43. Add contractual services funding to correct an error in the Proposed Budget for increasedcustodial services for the Library Department.

$656,000

44. Add funding to replace the lawn at City Hall South with drought tolerant landscaping andwater saving irrigation.

$200,000

Housing and Community Investment45. Restore funding for operation of an existing art center pending release of a Request for

Proposals for public-private partnerships for cultural facilities.$75,000

Information Technology Agency 46. Add resolution authority without funding for five Communication Electricians and increase

overtime funding to support the Police and Fire Dispatch Centers.$400,000

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47. Add one-time funding to the Communications Services Account for public safety radio towermaintenance.

$275,000

48. Add funding to Contractual Services ($430,000) and Office and Administration ($525,000)to fund the implementation of Phase II of the 311 Customer Relationship ManagementSystem for the Department of Recreation and Parks and the Animal Services Department.

$955,000

Neighborhood Empowerment 49. Set aside funds in the Unappropriated Balance to provide funding for Neighborhood

Councils. Instruct the General Manager to provide recommendations on the allocation ofthese funds, including the option of increasing the annual allocation, implementing a grantprogram and providing recommendations on a savings rollover policy of up to $5,000annually per Neighborhood Council.

$480,000

50. Add a line item in the Unappropriated Balance for contractual services funding ($275,000)to conduct online voting for neighborhood council elections. This will be funded by recentlyidentified savings within the Neighborhood Empowerment Fund. Department will report onpolicy issues prior to the release of funds.

-$0-

51. Add resolution authority and nine-months funding for two Project Assistants to provideNeighborhood Council Funding support ($84,862 direct cost/$43,857 indirect cost). Theseare exempt positions which are contingent upon Mayor and Council approval of theexemptions.

$128,719

52. Add funding for as needed training for Neighborhood Council board members.$25,800

Personnel and Human Resources Benefits Fund53. Add funding for staff and expenses to reduce the examining backlog, offset by an anticipated

2015-16 savings in Unemployment Insurance.

54. Add funding for a pilot program to digitize the employee filing system.

($1,000,000)

$81,000

55. Add resolution authority and nine-months funding for three Personnel Analyst II, one SeniorClerk Typist and five Clerk Typist and three-months funding for one Senior PersonnelAnalyst I and two Personnel Analyst II (Tier III resources) in order to eliminate theexamination backlog during 2017 ($1,004,108 direct cost/$226,148 indirect cost).

$1,230,256

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56. Add resolution authority and nine-months funding for one Senior Personnel Analyst II andone Personnel Analyst II to establish a Succession Planning Unit ($146,789 directcost/$62,497 indirect cost).

$209,286

57. Add contractual services funding for the Performance Management and Succession Planningsoftware component of the Talent Management System.

$300,000

Planning58. Restore position authority and add nine-months funding for two City Planning Associates to

support the Neighborhood Conservation Program ($126,032 direct cost/$56,249 indirectcost).

$182,281

59. Add resolution authority for one City Planning Associate in addition to the existing resolutionauthority for City Planner for the Venice Local Coastal Program, pending approval andreceipt of grant funds ($122,657 direct cost/$46,077 indirect cost).

-$0-

60. Add resolution authority and six-months funding and related expenses for two City Plannerand four City Planning Associate positions for the General Plan Update, to be partially paidfrom the Long-Range Planning Fund ($274,314 direct cost/$116,998 indirect cost).

$196,312

61. Add resolution authority and six-months funding for one City Planner and two City PlanningAssociate positions for a Targeted Code Amendments Unit to address motions related to landuse issues ($144,457 direct cost/$58,499 indirect cost).

$202,956

62. Add position authority and six-months funding for one City Planning Associate for datamanagement of the Historic Places LA website ($53,136 direct cost/$21,000 indirect cost).

$74,136

Police

63. Add funding to expand the number of Mental Health Intervention Training Course offeringsfrom 12 to 16.

$16,000

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64. Relative to Body Worn Video Cameras — Pending the procurement process and analysis ofthe infrastructure costs:

a. Decrease funding in the Police Department for Body Worn Video Cameras.($4,550,000)

b. Add a new line item in the Unappropriated Balance entitled "Body Worn VideoCameras."

$4,550,000

Public Works - Board65. Restore funding for one filled position of Senior Management Analyst II to support Project

Restore ($116,427 direct cost/$47,253 indirect cost).$163,680

66. Designate $100,000 within the Alterations and Improvement budget for City facilityrestoration efforts which will be used to augment private donations. Project Restore willadminister these funds for City Hall and other municipal facility restoration projects.

-$0-

67. Delete one Accountant II position and add one Senior Accountant II position to reducebacklogs of B-permit revenue, the Public Works Trust Fund and other special funds ($12,035direct cost/$3,622 indirect cost).

$15,657

Public Works - Contract Administration 68. Add resolution authority and nine-months funding for one Contract Compliance Manager I

and four Management Analyst II positions to address wage theft enforcement. Council is inthe process of creating a new Office of Labor Standards within the Bureau ($317,647 directcost/$141,396 indirect cost).

$459,043

Public Works - Sanitation69. Add resolution authority and nine-months funding for one Environmental Affairs Officer I

for the Clean Up Green Up Program ($87,179 direct cost/$35,398 indirect cost).$122,577

Transportation 70. Add resolution authority and nine-months funding for two Communication Information

Representative III positions for the Department of Transportation's Communication Center,which receives calls relative to traffic signal outages, broken traffic signs, abandoned cars,and other violations ($86,882 direct cost/$44,465 indirect cost).

$131,347

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Unappropriated Balance 71. Add contingency funding for enforcement of a sidewalk vending program currently under

discussion.$500,000

72. Add a new line item entitled "Environmental Impact Report - Trap/Neuter/Return Programfor feral cats."

$300,000

73. Add a new line item in the Unappropriated Balance entitled "Animal Services FieldOperations Enhancements" to provide 12 additional Animal Control Officers in the eventthere are sufficient eligible candidates on a yet to be established Civil Service list.

$320,000

74. Add funding for Fire Field Staffing operational needs, to be used to augment fire resourcesas needed.

$521,000

75. Add funding to address the Police Department's fingerprint backlog. Instruct LAPD toreport on other options to address the backlog such as contracting, and with the assistanceof the Personnel Department, report on a multi-year hiring strategy to fill critical vacantpositions in the Department's Scientific Investigation Division.

$500,000

76. Add a new line item in the Unappropriated Balance entitled "Wage Theft Enforcement" forcontingency staff resources for the Bureau of Contract Administration Office of LaborStandards and the Office of the City Attorney.

$200,000

77. Add to the Reserve for Mid-Year Adjustments to provide additional contingency funds forshortfalls and other unanticipated needs.

$7,000,000

78. Add a footnote to the Budget to designate as a contingency that up to $500,000 of the lineitem in the Unappropriated Balance entitled "Reserve for Mid-Year Adjustments" be usedto fund the implementation of the Climate Action Plan and that up to $1,000,000 in this lineitem be used to address Citywide homelessness.

Page 13 of 28

Other Changes

Building and Safety79. Add resolution authority and nine-months funding for one Environmental Specialist II to

support the Local Enforcement Agency to be reimbursed through inspection fees ($87,141direct cost/$28,554 indirect cost).

-$0-

80. Add resolution authority and nine-months funding for one Building Civil Engineer I tosupport the Technology Services Bureau, to be funded from the Building and Safety BuildingPermit Enterprise Trust Fund ($82,536 direct cost/$34,000 indirect cost).

-$0-

81. Add resolution authority and nine-months funding for one Building Civil Engineer II tosupport the Green, Electrical and Mechanical Division, to be funded from the Building andSafety Building Permit Enterprise Trust Fund ($97,136 direct cost/$34,000 indirect cost).

-$0-

82. Add resolution authority and nine-months funding for one Payroll Supervisor Ito support theFinancial Services Division, to be funded from the Building and Safety Building PermitEnterprise Trust Fund ($54,105 direct cost/$25,442 indirect cost).

-$0-

83. Add resolution authority and nine-months funding for five Senior Building Inspectors tosupport the Inspection Case Management Division, to be funded from the Building andSafety Building Permit Enterprise Trust Fund ($335,946 direct cost/$146,903 indirect cost).

-$0-

Capital Improvement Expenditure Program 84. Regarding Old Fire Station 62:

a. Authorize the Controller to reappropriate funds remaining in the Capital ImprovementExpenditure Program line item entitled "Citywide Nuisance Abatement Program"($72,000) to evaluate the feasibility of converting Old Fire Station 62/Mar Vista into acommunity center or recruit training center.

b. Designate a portion of the Civic and Community Facilities line item ($128,000) for thisproject.

-$0-

Controller85. Add resolution authority without funding for one Fiscal Systems Specialist II to provide

support for the Supply Management System, and instruct the City Administrative Officer toreport to the Budget and Finance Committee during the First Financial Status Report of2015-16 with potential funding sources, such as special or rollover funds.

-$0-

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El Pueblo86. Designate a portion of the Special Parking Revenue Fund allocation to the Innovation Fund

to provide a loan to El Pueblo for a pilot parking automation program to be repaid from theEl Pueblo de Los Angeles Historical Monument Revenue Fund. Further, instruct El Puebloto report to the Budget and Finance Committee with a repayment schedule.

-$0-

Forfeited Assets Trust Fund87. Recognize current-year receipts of $492,000 in the Forfeited Assets Trust Fund and allocate

those funds to purchase additional black and white vehicles and to replace outdatedtechnology. Further, instruct the City Administrative Officer to correct Schedule 3, asnecessary to reflect these changes.

-$0-

General City Purposes 88. Reappropriate funds within the General City Purposes Budget for dues, conferences,

meetings, and travel for the following:a. Increase Independent Cities Association from $5,250 to $10,000.b. Add a line item for Contract Cities Association in the amount of $10,000.c. Add a contingency line item for intergovernmental agency expenses ($25,000).

-$0-

Public Works - Engineering89. With regard to development services:

a. Add nine-months funding for one Civil Engineer, four Civil Engineering Associate III,one Civil Engineering Associate II, and one Office Engineering Technician II forpermitting, plan check and case development activities in the Development ServicesProgram, to be funded from additional permit revenues ($472,689 direct cost/$206,377indirect cost).

-$0-

b. Instruct the City Administrative Officer and the Bureau of Engineering to report on thefeasibility of creating an Enterprise Fund for the Development Services Program toexpedite the processing of B-permits and complete the first plan check within 30 days.

Public Works - Sanitation90. Add position authority and funding for one Assistant General Manager to oversee the Multi-

Family Franchise System, to be funded from the Solid Waste Resources Revenue Fund andthe Citywide Recycling Trust Fund ($122,657 direct cost/$46,077 indirect cost).

-$0-

91. Add resolution authority without funding for one Management Analyst II to coordinateliability investigations and process claims. ($59,688 direct cost/$27,123 indirect cost).

-$0-

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Public Works - Street Lighting92. With regard to the Street Light Maintenance Assessment Fund:

a. Amend the Proposed Budget Schedule 19 Street Lighting Maintenance AssessmentFund to recognize additional receipts from a MICLA loan to continue the High VoltageInterface Conversion Program, increased reimbursements from other funds andallocations for the Light Emitting Diode (LED) Conversion Program.

$5,844,177

b. Add resolution authority and nine-months funding for one Street Lighting Electrician,one Assistant Street Lighting Electrician, and one Electrical Craft Helper, hiring hallpositions, overtime and materials for the expansion of the High Voltage Interfaceprogram ($4,925,782 direct cost/$74,218 indirect cost) to be funded from the aboveloan.

($5,000,000)

c. Add resolution authority and nine-months funding for one Street Lighting Engineer, oneStreet Lighting Electrician, and one Electrical Craft Helper, hiring hall positions,overtime and materials for the Light Emitting Diode (LED) Conversion Project, PhaseII ($735,007 direct cost/$109,170 indirect cost).

($844,177)

d. Add resolution authority and nine-months funding for one Street Lighting ElectricianSupervisor I for the Transportation Grant Fund Program, to be reimbursed from theTransportation Grant Fund ($74,510 direct cost/$31,584 indirect cost).

-$0-

e. Add resolution authority for one Street Lighting Engineer for the Co-Location SmallCell Communication Program and delete resolution authority for one Street LightingEngineer Associate III.

-$0-

Recreation and Parks - Greek Theater93. Recognize additional revenue ($300,000) from the operation of the Greek Theatre anticipated

to be received during the last quarter of the 2015-16 Fiscal Year and allocate revenues forvenue capital improvements.

-$0-

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Telecommunications Development Account 94. Recognize $655,456 in revenue from a negotiated settlement with AT&T, $110,126 of which

is allocated to 1% PEG fees and $545,330 of which is allocated to 5% Franchise Fees. The$545,330 is allocated as follows:a. Telecommunications Development Account ($218,132).b. General Fund Franchise Fee receipts to support ITA Salaries General Account per the

Department's request ($327,198).$-0-

Transportation95. With regard to Transportation Programs.

a. Amend the Proposed Budget Local Transportation Fund Schedule 35 to include$144,142 in additional revenue and expenditures for the Exposition Boulevard BikePath Phase 2 match.

-$0-

b. Decrease funding in Proposition C for the Exposition Boulevard Bike Path Phase 2match to reflect the additional revenue in the Local Transportation Fund appropriation.

($144,142)

c. Increase funding for the replacement of ATSAC hubs in Proposition C, previouslyfunded by Measure R.

$144,142

d. Decrease funding for the replacement of ATSAC Hubs in Measure R, now funded byProposition C.

($144,142)

e. Increase Measure R funding for the following:i) Add resolution authority and nine-months funding for one Transportation

Engineering Associate I for a new speed hump program ($57,637 directcost/$26,505 indirect cost).

ii) Add funding to begin the design of a traffic signal at Mohawk Bend to expeditethe construction of the project ($60,000).

$144,142

96. Add resolution authority and nine-months funding for one Management Analyst I for thepermit parking program, to be paid from the Permit Parking Program Revenue Fund ($50,605direct cost/$24,389 indirect cost).

-$0-

97. Add resolution authority and nine-months funding for three Transportation EngineeringAssociate II for expedited plan review, to be paid from fees deposited into the new ExpeditedPlan Trust Fund ($210,337 direct cost/$85,661 indirect cost).

-$0-

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98. Add resolution authority and nine-months funding for one Transportation EngineeringAssociate III and three Transportation Engineering Aide I for quality control of contractorservices (e.g., striping) for the Pavement Preservation Program, to be offset by a likereduction in contractual services for Pavement Preservation Program activities ($136,454direct cost/$68,543 indirect).

-$0-

99. Authorize the department to hire additional Crossing Guards in 2015-16. Resources providedin 2014-15 limited the number of Crossing Guards to 410. Sufficient funding is provided inthe Proposed Budget to increase the number of Crossing Guards by approximately 65 for atotal of 475. Instruct the Department to report to Council upon completion of their review ofwarrant criteria and Crossing Guard locations.

-$0-

Unappropriated Balance and Fire100. Firefighter Hiring:

a. Appropriate funding in the Unappropriated Balance for Firefighter Hiring and Training.($4,500,000)

b. Increase funding in the Fire Department for two firefighter training classes to take placeat Drill Tower 40 in San Pedro.

$4,166,000

c. Increase funding for Sworn Health and Welfare ($282,000) and Sworn Pensions($52,000).

$334,000

Unappropriated Balance and Street Services 101. Reduce funding in line item in the Unappropriated Balance entitled "Tree Trimming

Services" ($2,500,000) and increase funding by a like amount in the Bureau of Street ServicesContractual Services account to fund the trimming of an additional 19,250 trees.

-$0-

Page 18 of 28

Instructions and Technical Adjustments

Exhibit H 102. Adopt recommendations contained in Exhibit H with the following changes:

a. Delete the instruction that requests the City Attorney, with assistance from the Bureauof Sanitation, to prepare and present an ordinance amending the Los Angeles MunicipalCode to establish Municipal Separate Storm Sewer System (MS4) Permit InspectionFees for commercial and industrial facilities, as this is a policy matter and a separaterequest for report to the Energy and Environment Committee is included in theAttachment to this report.

b. Delete the instruction that requests the City Attorney, with assistance from the Bureauof Street Services, to prepare and present ordinances to amend sections of the LosAngeles Municipal Code and Los Angeles Administrative Code to update and increasefees and permits for special services provided by and/or collected by the Bureau ofStreet Services, to codify fee tables as appropriate, make the codes "user friendly," andassist the public in identifying and locating Bureau of Street Services fees, as this is apolicy matter and a separate request for report to the Public Works and Gang ReductionCommittee is included in the Attachment to this report.

c. Delete the instruction that requests the City Attorney to prepare and present anordinance amending Section 5.97 of the Los Angeles Administrative Code to create anaccount within the Telecommunications Liquidated Damages and Lost Franchise FeesFund to collect Public, Educational, and Government (PEG) Access Capital FranchiseFees separately from other revenue collected by the Telecommunications DevelopmentAccount, as this is a policy matter and a separate request for report to the Innovation,Technology and General Services Committee is included in the Attachment to thisreport.

d. Delete the instruction that the Animal Services Department report to the Mayor andCouncil on its water usage and work with the Department of Water and Power, andGeneral Services Department (GSD), to improve conservation efforts, as this is alreadypart of a citywide effort, covered by the Mayor's Executive Directive No. 5.

e. Delete the instruction to the City Administrative Officer, with the assistance of the CityAttorney and the City Clerk, to report to the Mayor and Council on the costs and fundingof the Health Commission, as this report has previously been requested under CouncilFile 14-0596.

Page 19 of 28

f. Delete the instruction to the City Administrative Officer, with the assistance of theGeneral Services Department, the Fire Department and the Police Department, to reviewthe current status of the City's capital equipment replacement needs, and develop acomprehensive multi-year capital equipment replacement plan to achieve the followingobjectives: 1) eliminate the City's capital equipment backlog, and 2) transition themajority of equipment purchases from tax-exempt lease financing through theMunicipal Improvement Corporation of Los Angeles to a "pay-as- you-go" (cash) basis,as this is a policy issue and a request to report to the Budget and Finance Committee isincluded in the Attachment to this report.

g. Delete the instruction to the City Administrative Officer to report to the Mayor and CityCouncil on the synergies between El Pueblo, Project Restore, and the Cultural AffairsDepartment along with the potential for co-location at El Pueblo, as strategic planningfor asset management and space planning is performed on a regular basis by the CityAdministrative Officer and reviewed by the Municipal Facilities Committee.

h. Delete the instruction that the Office of the City Clerk report with a five-year plan toappropriately resource the Elections Division to reflect the transfer of duties to the LosAngeles County Registrar-Recorder. The report should also include, but not be limitedto, the following: recommendations for any Charter and ordinance changes required toeffectuate the plan, staffing required to perform duties remaining under the City'sjurisdiction, and ensuring a smooth transition for all current employees, as this is apolicy matter and a request to report to the Rules, Elections and IntergovernmentalRelations Committee has been included in the Attachment to this report.

Delete the instruction requesting the Controller, with the assistance of the City Attorney,to amend the Standard Provisions for City Contracts, (Last revised in March 2009) andrequire contractors to receive/make payments via Electronic Fund Transfers. The CityAttorney shall advise whether changes can be done administratively or with Mayor/CityCouncil approval, as this is a policy matter and a similar request to report to the Budgetand Finance Committee is included in the Attachment to this report.

Delete the instruction requesting the Department on Disability (DOD), with theassistance of the CAO, to report to the Mayor and City Council on Video RemoteInterpreting (VRI). This report back shall include, but not be limited to, how DOD willpilot this program, costs, and how other departments will use and provide funds to usethis service given the equipment and infrastructure requirements, as this report hasalready been requested under Council File 14-1337.

k. Delete the instruction to the Office of Finance, with the assistance of the InformationTechnology Agency (ITA) and the CAO, to report to the Mayor and City Council onthe costs, hardware, software, and plan to implement the Payment Card Industry DataSecurity Standard (PCI DSS) to ensure that the City processes, stores, and transmitscredit card information in a secure environment, as this report has already beenrequested under Council File 14-0600-S95.

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1. Delete the instruction to the Office of Finance, with the assistance of the City Attorney,to finalize an agreement with Airbnb and similar short-term rental websites for thecollection and remittance of the City's Transient Occupancy Tax and report to theMayor and City Council on the terms of the proposed agreement(s), as this has beenpreviously requested under Council File 14-0600-589, and the City AdministrativeOfficer has recently transmitted a report under this Council File.

m. Delete the instruction to the Fire Department to report to the Mayor and City Councilon establishing a false alarm fee schedule, as this has been previously requested underCouncil File 12-0122.

n. Delete the instruction to the General Services Department (GSD), with the assistance ofthe CAO, to report to the Mayor and City Council on the City's increased usage ofElectric Vehicles, the resultant decrease in petroleum usage, and the net savings in thePetroleum Products Account, as this has been previously requested under Council File14-0600-S30.

o. Delete the instruction requesting the Information Technology Agency (ITA) and theCultural Affairs Department, with the assistance of the CAO and the City Attorney, toreport to the Mayor and City Council on the feasibility of transferring Channel 35 toCultural Affairs, as this is a policy matter and a request to report to the Innovation,Technology and General Services Committee and the Arts, Parks, Health, Aging andRiver Committee is included in the Attachment to this report.

P.

q.

Delete the instruction to the Personnel Department, with the assistance of the FireDepartment, Police Department, and City Attorney, to report on solutions and options(which shall include an analysis of the Controller's recent audit) to significantly reducesworn workers compensation costs, as a similar report is pending consideration by theAudits Committee under Council File 14-0924-52.

Delete the instruction to the Board of Public Works to report to the Mayor and CityCouncil on consolidating emergency management functions within the Board, ratherthan decentralizing these in bureaus, as this is a policy matter and a request to report tothe Public Works and Gang Reduction Committee and the Public Safety Committee hasbeen included in the Attachment to this report.

Delete the instruction to the Board of Public Works, with the assistance of the Bureauof Sanitation, to report to the Mayor and City Council with an implementation plan andtimeline for the overall Clean Streets Initiative, as this information has already beenprovided under Council File 13-0852-SI and under the Mayor's Executive Directive No.9.

Page 21 of 28

s. Delete the instruction to the Board of Public Works to work with the Office ofCommunity Beautification contractors and Neighborhood Empowerment and report tothe Mayor and City Council with an estimated cost to implement an abandoned wastereporting program and to identify the related service level and metrics associated withthe identified costs, as a similar report has been provided under Council File 13-0852-SI.

Delete the instruction to the Board of Public Works, with the assistance of the Bureauof Street Services, to issue a Request for Proposals to identify a strategy and potentialcost for a structural overhaul of the City Street Sweeping Routes to ensure the City ismaximizing resources, improving compliance with the Clean Water Act and to theextent possible, reducing air pollution, as this is a policy matter and a request to reportto the Public Works and Gang Reduction Committee and the Energy and EnvironmentCommittee has been included in the Attachment to this report.

u. Delete the instruction to the Board of Public Works to report to the Mayor and CityCouncil on the feasibility of having the Department of Public Works headed by anexecutive level position, as this is a policy matter and a request to report has beenincluded in the Attachment to this report.

v. Delete the instruction to the Bureau of Sanitation and the General Services Departmentto report on the feasibility of any cost savings associated with direct billing of water andelectricity from the General Services Depal Latent to the Bureau of Sanitation, as this isa policy matter and a request to report to the Innovation, Technology and GeneralServices Committee and the Energy and Environment Committee is included in theAttachment to this report.

w. Delete the instruction to request the Bureau of Sanitation, with the assistance of the CityAttorney, to report on the legality of allowing ratepayers to pay for subsidies related tomultifamily bulky item pickups and extra capacity bins if pending State legislation isapproved, as this is a policy matter and a request to report to the Energy andEnvironment Committee is included in the Attachment to this report.

x. Delete the instruction to the Bureau of Street Services, with the assistance of the CityAdministrative Officer to report on a proposed fee increase related to the Street DamageRestoration Fund, as this is a policy matter and a request to report to the Public Worksand Gang Reduction Committee is included in the Attachment to this report.

y. Delete the instruction to the Department of Transportation, with the assistance of theCity Administrative Officer, to report the Mayor and Council on the development of apilot program to expand and maintain improvements in the Great Streets Corridors byusing net new on- and off-street parking revenues on or adjacent to designated GreatStreets, as a strategic plan has been transmitted and is pending consideration underCouncil File 14-1332.

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z. Delete the instruction to the Department of Transportation to review the City'spreferential parking policies, including the criteria and processes used to establishpreferential parking districts, and report to the Mayor and Council on recommendationsto update fees, and identify potential options to update the existing Preferential ParkingProgram to ensure equitable parking benefits and impacts among users, as a ParkingReform Plan has been transmitted by the Mayor and is pending consideration underCouncil File 14-1332-S1.

aa. Delete the instruction to the Department of Transportation to report to the Mayor andCouncil on the feasibility, including the cost and resources required, and timeline, foraccelerating the expansion of the current ExpressPark Program as a Parking ReformPlan has been transmitted by the Mayor and is pending consideration under Council File14-1332-S1.

bb. Delete the instruction to the Department of Transportation, with the assistance of theCity Administrative Officer, to review the final report of the Los Angeles ParkingReform Working Group and provide recommendations to the Mayor and Council on theproposals presented in the report, as a Parking Reform Plan has been transmitted by theMayor and is pending consideration under Council File 14-1332-S1.

cc. Delete the instruction to the Department of Transportation, with the assistance of theCity Administrative Officer, to review' the City's existing parking citation fine structureand to make recommendations to the Mayor and Council that further strengthen theCity's focus on customer friendliness and equity as well as on effective parkingenforcement to maximize safety and through-traffic for the needs of local businesses, asa Parking Reform Plan has been transmitted by the Mayor and is pending considerationunder Council File 14-1332-S1.

dd. Delete the instruction to the Los Angeles Zoo to report to the Mayor and Council on thefeasibility of charging a parking fee for Hollywood Bowl patrons taking shuttle busesfrom the Zoo parking lot.

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General Instructions

103. Instruct all Departments to ensure that all receipts, including settlements and liability claims,are properly deposited into the General Fund, and further request the Controller to ensure thatDepartments are adhering to this instruction.

104. Instruct all Departments to ensure immediate invoicing for all grant reimbursements.

105. Instruct all departments to process FMS transactions resulting from Mayor/Council fiscalactions within 10 working days from the approval date as recorded by the Mayor and CityClerk.

106. Instruct the CAO to monitor and ensure timely data entry of budget adjustments by CityDepartments.

107. Reaffirm the instruction from the 2009-10 Adopted Budget that all projects proposed forMICLA financing must be approved by the Council before expending MICLA CommercialPaper proceeds. Further, to the extent that special funds are being used to support MICLAprojects, that the City Administrative Officer reevaluate the use and report on the need forspecial funds.

108. Authorization of substitute positions other than for layoff avoidance and or for whichadequate savings within a department's budget has not been identified, shall require Councilapproval, effective July 1, 2015. The use of substitute authorities shall be restricted only tolimited duration or critical uses.

109. Instruct the City Clerk to open Council Files for all pending and outstanding report requestsmade by the Budget and Finance Committee during its consideration of the Mayor's Proposed2015-16 Budget, as shown in the Attachment (Requested Reports and Special Studies), andas noted in this report, to ensure the referral of various memoranda and reports.

110. Request the City Attorney to transmit all implementing ordinances no later than June 30,2015.

111. Authorize the CLA and CAO to make minor and technical adjustments to accomplish theintent of the changes proposed herein.

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Technical Adjustments

Capital Improvement Expenditure Program 112. Add projects to the 2015-16 MICLA program as follows: Bureau of Street Lighting High

Voltage Conversion Program ($5,000,000).

113. Sites and Facilities - add a notation to the CIEP that 2015-16 allocation will be used for gapfinancing for the previously approved Rancho Cienega project, which will be ready for bidin March 2016.

City Administrative Officer114. Instruct the City Administrative Officer to report to Council prior to commissioning any

studies with Fuse Corps for the fellowship program.

Ethics Commission115. Delete resolution authority and add regular position authority for one Senior Management

Analyst I and one Management Analyst I to create and maintain a contract database asrequired by the Governmental Ethics Ordinance.

116. Reallocate the following positions and paygrades as approved by the Personnel Departmentand the City Administrative Officer:a. One Ethics Officer III to Ethics Officer IIb. One Management Analyst II to Special Investigator IIc. Two Management Analyst II to Senior Management Analyst Id. One Management Analyst II to Senior Auditore. Two Management Analyst II to Special Investigator If. One Paralegal II to Senior Management Analyst Ig. Two Auditor Ito Auditor IIh. One Auditor Ito Management Analyst I

Finance117. Affirm City Attorney and Office of Finance reports that new automobile leasing activity

qualifies for the new automobile sales tax exemption previously approved by Council andthat no further ordinance is required.

118. Authorize and instruct the Office of Finance to place Building and Safety and the Departmentof Transportation on a direct billing schedule for their bank fees and credit card services.

Fire119. Amend the line item entitled "Ambulance Augmentation Plan" to be "Ambulance

Deployment Plan" to property recognize the status of this program.

Page 25 of 28

120. Reallocate the following positions and paygrades, subject to approval of the PersonnelDepartment as to the classification and the City Administrative Officer as to paygrade:a. One Fire Protection Engineering Associate IV to Fire Protection Engineer

(Development Services Unit).b. One Assistant Chief to Battalion Chief (Four Geographic Bureaus).c. One Captain II to Battalion Chief (Four Geographic Bureaus).d. One Management Analyst Ito Management Analyst II (Emergency Medical Services).e. Three Accounting Clerk I to Accounting Clerk II (Accounts Receivable; Payroll).f. Restore 13 positions, without funding, which were deleted in the Fleet Maintenance

Division as a result of the Early Retirement Incentive Program (ERIP). The positionsare: one Auto Painter, four Equipment Mechanic, three Heavy Duty EquipmentMechanic, two Mechanical Repairer, one Senior Equipment Mechanic, and two SeniorHeavy Duty Equipment Mechanic.

g. Add resolution authority and no funding for one Senior Fire Protection Engineer in theDevelopment Services Unit, to ensure proper management and oversight of nine FireProtection Engineering Associates.

General City Purposes 121. Request the Mayor to designate $150,000 each in GRYD funding for the Devonshire PALS

Center and the Pacific Area PALS Center each year beginning in Fiscal Year 2016-17.

Information Technology Agency 122. Restore resolution authority without funding for the following vacant positions: three

Communication Electrician, two Systems Programmer I, one System Analyst II, and oneProgrammer Analyst II.

123. Instruct the Information Technology Agency to report on all potential funding mechanismsfor ongoing network support and replacement projects.

124. Delete resolution authority and add regular authority for one Database Architect, oneProgrammer Analyst IV, and one Systems Programmer II that support the VehicleManagement System project.

Personnel 125. Reaffirm that Reserve Police Officer candidates who cross file as Police Officer candidates

will also be invited to participate in the Personnel Department's Expedited Testing Processwhich will allow candidates to complete nearly all phases of testing in four consecutive days.

Planning126. Instruct the Planning Department to identify the costs associated with bringing public

buildings nominated for Historic-Cultural Monument status up to code in all reports to theCouncil.

Page 26 of 28

Police127. Instruct the Police Depaituient to purchase three zero-emission motorcycles using funds

allocated in the 2015-16 budget for fleet purchases.

Public Works - Street Lighting128. Delete funding in the Contractual Services Account for Fleet Leasing ($163,000) and Co-

Location Small Cell Communication Attachment ($136,000) and increase funding in theOperating Supplies and Expenses Account by like amounts to reflect the proper accounts forthese expenditures.

129. Delete one Office Engineering Technician II and two Senior Clerk Typist positions and addone Street Lighting Electrician, two Electrical Craft Helpers and one Street LightingEngineering Associate II positions in lieu of the above deletions.

Public Works - Street Services 130. Add resolution authority without funding for one Chief Management Analyst to serve as the

Sustainability Officer for the Bureau.

Recreation and Parks 131. Add position authority without funding for one Superintendent of Recreation and Parks

Operations to support Venice Beach, and instruct the General Manager to report on theoptimal allocation of workload between the five superintendents positions within thedepartment.

Transportation132. Amend the Proposed Budget, Local Transportation Fund Schedule 34 Local Transportation

Fund to include $875,811 in additional revenues and expenditures for two bicycle projectsthat were inadvertently omitted from the schedule.

Zoo133. Amend the Proposed Budget, Zoo Enterprise Trust Fund, Schedule 44 to recognize additional

revenue from Night-Time Ticketed Events ($1,121,000) and appropriate to GLAZAMarketing Refund ($1,090,000) and Reserve for Revenue Fluctuations ($31,000).

Budget Notes 134. Add a footnote to the Proposed Budget to clarify that, upon receipt or funds from an

agreement with short-term rental websites, $5M in Transient Occupancy Tax shall betransferred to the Affordable Housing Trust Fund, Cultural Affairs and the Convention Centerpursuant to current law.

135. Add footnote to Schedule 20 of the Budget, as follows: "Prior to the 2015-16 transfer to theGeneral Fund as contemplated in the Adopted Budget, the allocation of any settlement fundsin the Telecommunications Development Account Funds for 1% PEG fees and 5% FranchiseFees is subject to the approval of the Mayor and Council."

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136. Controller - Revise footnote on Budget page 183 to allocate a minimum of $250,000 to theAccounting Pool.

CLOSING RECOMMENDATIONS

137. Instruct the Office of the City Administrative Officer to prepare and present to the CityCouncil within 30 days a listing of all resolutions, substitute, and in-lieu positions needed tofulfill the intent of the Council's action on the 2015-16 Budget.

138. Authorize the Chief Legislative Analyst and the City Administrative Officer to make minorand technical adjustments to fulfill the intent of the Budget actions, and request the CityAttorney, with the assistance of the CLA and the CAO, to prepare and present a resolutionfor the adoption of the 2015-16 Budget for the General Government of the City of LosAngeles as submitted by the Mayor on April 20, 2015, as modified by this report.

Page 28 of 28

Requested Reports and Special Studies Attachment

Aging

R 1. Instruct the Department of Aging to report to the Arts, Parks, Health, Aging and River Committee

on the long term impact on services, programs, and classes offered if LAUSD eliminates the Senior

Program. The report should include the feasibility of receiving a matching contribution from

LAUSD to retain 21 LAUSD instructors for the Department's Senior Program.

Animal Services

R 2. Instruct the Department of Animal Services to work with the Information Technology Agency, the

Office of Finance and the City Administrative Officer to determine whether the Chameleon data

management system, with upgrades, will be sufficient for the Department's needs and to report

to the Personnel and Animal Welfare Committee and the Innovation, Technology and General

Services Committee.

R 3. Instruct the Department of Animal Services to report to the Personnel and Animal Welfare

Committee on the mobile data computer program to determine the required resources, level of

funding and the potential cost/benefit of the program.

Building and Safety

R 4. Instruct the Department of Building and Safety to report to the Planning and Land Use

Management Committee on the number of soft story buildings per Council District, and indicate

where the hotspots of soft story buildings are located.

City Administrative Officer

R 5. Instruct the City Administrative Officer to report to the Innovation, Technology and General

Services Committee with a proposal on a Virtual and Technological Infrastructure Policy in

addition to the current Capital Improvement Expenditure Program policy.

R 6. Instruct the City Administrative Officer to report to the Innovation, Technology and General

Services Committee regarding the creation of an account within the Telecommunications

Liquidated Damages and Lost Franchise Fees Fund to collect Public, Educational, and Government

(PEG) Access Capital Franchise Fees separately from other revenue collected by the

Telecommunications Development Account.

R 7. Instruct the City Administrative Officer to report to the Innovation, Technology and General

Services Committee on integrating the future Asset Management System to the OpenData portal.

1

City Administrative Officer (continued)

R 8. Instruct the City Administrative Officer, with the assistance of the General Services Department,

the Fire Department and the Police Department, to report to the Budget and Finance Committee

with a review of the current status of the City's capital equipment replacement needs, and

recommendations to develop a comprehensive multi-year capital equipment replacement plan

to achieve the following objectives: 1) eliminate the City's capital equipment backlog, and 2)

transition the majority of equipment purchases from tax-exempt lease financing through the

Municipal Improvement Corporation of Los Angeles to a "pay-as-you-go" (cash) basis.

R 9. Instruct the City Administrative Officer to report to the Ad Hoc Committee on Special Olympics on

the possibility of the City making contributions to Special Olympics, including discussion of in-kind

contributions the City currently provides, such as city services and positions added by the City in

support of the Special Olympics.

R 10. Instruct the City Administrative Officer to report to the Budget and Finance Committee with

regard to infrastructure investments. The report should include other cities' infrastructure

expenditures and existing best practices.

R 11. Instruct the City Administrative Officer to report to the Arts, Parks, Health, Aging and River

Committee and Budget and Finance Committee on options that would allow the Department of

Cultural Affairs' annual appropriation to be based on actual Transient Occupancy Tax collections

versus estimates.

R 12. Instruct the City Administrative Officer, with the assistance of the Personnel Department, to

report to the Public Safety Committee and the Budget and Finance Committee, on requirements

and costs to implement a sixth training class for paramedics only. The report should address the

feasibility of using retired firefighters to conduct the paramedic training program.

R 13. Instruct the City Administrative Officer to report to the Public Safety Committee on the funding

the City should be pursuing and receiving from the State under Proposition 47.

R 14. Instruct the City Administrative Officer to report to the Public Works and Gang Reduction

Committee on a long range plan to bring the street sweeping staff to previous levels.

R 15. Instruct the City Administrative Officer to report to the Public Works and Gang Reduction

Committee and Budget and Finance Committee regarding required resources for increased public

right-of-way enforcement.

R 16. Instruct the City Administrative Officer, with the assistance of the Information Technology Agency

and the Department of Cultural Affairs, to report to the Arts, Parks, Health, Aging and River

Committee and the Innovation, Technology and General Services Committee on the feasibility of

transferring Channel 35 to Cultural Affairs. The report should include potential impacts to funding

Channel 35 services, cultural services and cultural programming that could result from such a

transfer.

2

City Administrative Officer (continued)

R 17. Instruct the City Administrative Officer, with the assistance of the Board of Public Works, to report

to the Public Works and Gang Reduction Committee and the Public Safety Committee on

consolidating emergency management functions within the Board of Public Works, rather than

decentralizing these to the bureaus.

R 18. Instruct the City Administrative Officer to report to the Public Works and Gang Reduction

Committee on the feasibility of having the Department of Public Works headed by an executive

level position.

R 19. Instruct the City Administrative Officer, with assistance from the Bureau of Sanitation and the City

Attorney, to report to the Energy and Environment Committee on the legality of allowing

ratepayers to pay for subsidies related to multifamily bulky item pickup and extra capacity bins if

pending State legislation is approved.

R 20. Instruct the City Administrative Officer, with assistance from the Bureau of Street Services, to

report to the Public Works and Gang Reduction Committee on a proposed fee increase related to

the Street Damage Restoration Fund.

City Attorney

R 21. Request the City Attorney to review the City's Standard Provisions for City Contracts, and make

recommendations as to revisions, including a requirement for contractors to receive/make

payments via Electronic Fund Transfer. Request the City Attorney to advise as to whether these

changes can be done administratively or require Mayor and City Council approval.

R 22. Request the Domestic Violence Task Force to report to the Public Safety Committee regarding

whether funding is sufficient for program needs.

City Clerk

R 23. Instruct the City Clerk, with assistance from the City Administrative Officer, City Attorney, and

Economic Workforce Development Department, to report to the Economic Development

Committee on whether the City's services can be counted as in-kind payment towards the City's

General Benefits obligation to Business Improvement Districts, and to include the process

necessary to determine the projected savings.

R 24. Instruct the City Clerk to report to the Rules, Elections and Intergovernmental Relations

Committee with a five-year plan to appropriately resource the Elections Division to reflect the

transfer of duties to the Los Angeles County Registrar-Recorder. The report should also include,

but not be limited to, the following: recommendations for any Charter and ordinance changes

required to effectuate the plan, staffing required to perform duties remaining under the City's

jurisdiction, and a plan to ensure a smooth transition for all current employees.

3

Emergency Management

R 25. Instruct the Emergency Management Department to report to the Public Safety Committee with

a detailed operation and maintenance plan on audio/visual funding for the Emergency Operations

Center.

Finance

R 26. Instruct the Office of Finance, with the assistance of the City Attorney, to report to the Budget

and Finance Committee with an analysis of revenue from medical marijuana dispensaries that are

considered as Measure D compliant shops.

Fire

R 27. Instruct the Fire Department to report to the Public Safety Committee and the Personnel and

Animal Welfare Committee regarding the efforts the Department is undertaking to increase the

number of female and minority recruits, including establishment of realistic goals.

R 28. Instruct the Fire Department to report to the Public Safety Committee regarding the status of the

Department's move to Fire Station No. 7, estimated move-in date, and anticipated difficulties that

may be encountered.

General Services

R 29. Instruct the General Services Department to report to the Innovation, Technology and General

Services Committee on the reason for the increase in processing time for supply management

requests, proposed technological improvements to expedite the processing time, and possibility

of expediting public safety related requests.

R 30. Instruct the General Services Department to report to the Innovation, Technology and General

Services Committee on a metric or benchmark on the turnaround time for equipment repair.

R 31. Instruct the General Services Department to report to the Innovation, Technology and General

Services Committee on the feasibility of the Department completing a greater number of audits

throughout the year.

Housing and Community Investment

R 32. Instruct the Housing and Community Investment Department to report to the Housing Committee

on City of Santa Monica buyout agreements, the ability for the City to implement a similar

program, and whether it would require an ordinance to implement.

R 33. Instruct the Housing and Community Investment Department to report to the Housing Committee

on finding a more stable or permanent funding source for domestic violence shelters.

4

Housing and Community Investment (continued)

R 34. Instruct the Housing and Community Investment Department to report to the Housing Committee

on enforcement activities for the Ellis Act.

Information Technology Agency

R 35. Instruct the Information Technology Agency to report to the innovation, Technology and General

Services Committee on how the Information Technology Agency will provide the necessary

coverage that public safety systems require (e.g. staff to work on radio microwaves) given the

high staff retirement rates.

Planning

R 36. Instruct the City Planning Department to report to the Planning and Land Use Management

Committee and Innovation, Technology and General Services Committee on the tools re:codeLA

will have and implementation timeline.

Police

R 37. Instruct the Police Department to report to the Public Safety Committee on the number of hit-

and-runs dating back to 2005.

R 38. Instruct the Police Department to report to the Public Safety Committee on impacts of the

recession on the Department's ability to hire, description of the Property Division, and the

Property Division's current and projected hiring level needs.

R 39. Instruct the Police Department to report to the Ad Hoc Committee on Homelessness on the extent

that the Coordinated Assessment and Management Program (CAMP) intersects/interfaces with

the current Coordinated Entry System (CES), pooled resources with the County, and City and

County resources required to expand the SMART and CAMP programs to provide a greater ability

to manage police interaction with individuals experiencing mental health crises.

R 40. Instruct the Police Department and the Fire Department, to report to the Public Safety Committee

regarding a minimum ratio for the amount of civilian workers per Police Department and Fire

Department sworn employees.

Public Works, Engineering

R 41. Instruct the Bureau of Engineering to report to the Personnel and Animal Welfare Committee on

a plan of action for addressing attrition and ideas for bringing in employees with current

engineering skillsets.

5

Public Works, Sanitation

R 42. Instruct the Bureau of Sanitation to report to the Energy and Environment Committee on methods

to avoid the first lien problem that PACE had regarding the Sewer Connection Assistance Program.

R 43. instruct the Bureau of Sanitation, with assistance from the City Administrative Officer, to conduct

a fee study and to report to the Energy and Environment Committee with recommendations to

amend the Los Angeles Municipal Code to establish Municipal Separate Storm Sewer System

(MS4) Permit Inspection Fees for commercial and industrial facilities.

R 44. Instruct the Bureau of Sanitation to report to the Energy and Environment Committee on the

Abandoned Waste Program and provide relevant metrics.

R 45. Instruct the Bureau of Sanitation to report to the Energy and Environment Committee on whether

there will be a net savings that will result if the City provided catch basin clean up rather than

paying a greater portion of the $8 billion obligation for stormwater clean up, and indicate whether

the lack of City services for this area affects the City.

R 46. Instruct the Bureau of Sanitation and the Department of General Services to report to the

Innovation, Technology and General Services Committee and the Energy and Environment

Committee on the feasibility of any cost savings associated with direct billing of water and

electricity from the General Services Department to the Bureau of Sanitation.

Public Works, Street Services

R 47. Instruct the Bureau of Street Services to report to the Public Works and Gang Reduction

Committee on a structural overhaul of the Bureau's street sweeping routes.

R 48. Instruct the Bureau of Street Services to report to the Public Works and Gang Reduction

Committee and Budget and Finance Committee regarding the multi-year plan to increase

utilization of in-house tree trimming staff while reducing the use of outside contractors and its

impact on special funds.

R 49. Instruct the Bureau of Street Services to report to the Public Works and Gang Reduction

Committee regarding the Bureau's inconsistent response time when responding to requests for

street sweeping on non-posted streets.

R 50. Instruct the Bureau of Street Services to report to the Public Works and Gang Reduction

Committee and Budget and Finance Committee regarding financing programs and alternative

materials available on the market for sidewalk repair.

6

Public Works, Street Services (continued)

R 51. Instruct the Bureau of Street Services to report to the Public Works and Gang Reduction

Committee and Budget and Finance Committee with proposals for adding crews for grinding in

order to maximize compliance with ADA for sidewalks.

R 52. Instruct the Bureau of Street Services to report to the Public Works and Gang Reduction

Committee on whether using additional street sweepers would increase the frequency of street

sweeping services beyond the posted routes, effect on the TMDL obligations, and any potential

net savings to those obligations.

R 53. Instruct the Bureau of Street Services, with assistance from the City Administrative Officer, to

report to the Public Works and Gang Reduction Committee with recommendations to amend

sections of the Los Angeles Municipal Code and the Los Angeles Administrative Code to update

and increase fees and permits for special services provided by and/or collected by the Bureau of

Street Services, codify fee tables as appropriate while making the codes user friendly, and assist

the public in identifying and locating Bureau of Street Services fees.

R 54. Instruct the Bureau of Street Services, to report to the Public Works and Gang Reduction

Committee with a detailed plan for the conversion of turf on median islands with drought tolerant

plantings or other water-wise landscaping features, such as mulch and permeable pathways. The

report should address the use of available rebates for this purpose and necessary agreements

with Department of Water and Power to facilitate receipt of rebates.

Recreation and Parks

R 55. Instruct the Department of Recreation and Parks to report to the Arts, Parks, Health, Aging and

River Committee regarding options to reduce filming costs at the Griffith Observatory to make

the location more affordable.

R 56. Instruct the Department of Recreation and Parks to report to the Arts, Parks, Health, Aging and

River Committee with a list of the 35 most heavily used park facilities that will receive more than

two restroom cleanings each day.

R 57. Refer Budget Memo 23 regarding funding options for acquisition of the Red Car Site in Council

District 13 to the Arts, Parks, Health, Aging and River Committee.

R 58. Instruct the Department of Recreation and Parks to report to the Arts, Parks, Health, Aging and

River Committee on the equitable distribution of Summer Night Lights program sites.

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Transportation

R 59. Instruct the Department of Transportation to report to the Transportation Committee with a

review of a report provided by Fixing Angelenos Stuck in Traffic (FAST), particularly relative to a

proposal to implement peak-hour traffic lanes on Vanowen Street and Victory Boulevard.

R 60. Instruct the Department of Transportation to report to the Transportation Committee on reducing

the time it takes to review parking permit applications, resources required to potentially meet a

six-month benchmark, and fines for misuse of permit parking placards.

R 61. Instruct the Department of Transportation to report with a long-term plan for restoring the speed

hump program and blue curb programs.

Zoo Department

R 62. Refer Budget Memo 14 to the Arts, Parks, Health, Aging and River Committee, and instruct the

Zoo Department to report to the Arts, Parks, Health, Aging and River Committee on both GLAZA

and the Zoo's overall budgets including salaries and expenditures, and a comprehensive picture

of funding and services of both parties.

R 63. Instruct the Zoo Department to report to the Budget and Finance Committee on where the Zoo

would receive revenue from fees charged for parking related to the Hollywood Bowl Shuttle, and

on the policy implications for charging such fees.

Added by the Budget and Finance Committee

R 64. Instruct the City Administrative Officer to report to the Budget and Finance Committee regarding

reimbursement for State mandates. The report should include what reimbursements are

anticipated and what, realistically, the City will receive.

R. 65 Instruct the Police Department to report the Budget and Finance Committee, for consideration in

the 2014-15 Year-End Financial Status Report, on the availability of grant funds to fund additional

mental health training classes for sworn officers.

R 66. Instruct the Bureau of Street Services to report to the Public Works and Gang Reduction

Committee at midyear with a request to restore funding for special projects, such as the

elimination of stagnant/standing water that contributes to the spread of West Nile Virus.

R 67. Instruct the Department of Transportation to report to the Transportation Committee with a Five-

Year Expenditure Plan for the Special Parking Revenue Fund.

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