City Infrastructure, Budget, Finance, and Contracting

IMPARTIAL SUMMARY BY SHARON M. TSO, CHIEF LEGISLATIVE ANALYST The Los Angeles City Charter (Charter) includes rules for how the City manages its budget, contracting, City-owned property, and the Department of Public Works. This measure would amend the Charter to make changes to these rules, as follows: ● Two-Year Budget: Currently, the City is required to adopt a budget each year. The measure would change the City’s budget cycle to a two-year cycle unless another budget cycle is adopted by ordinance, and modify the date by which the Mayor submits a Proposed Budget. This measure would require the Mayor to submit a proposed two-year budget to the City Council (Council) by April 1. The Council would have until June 1 to approve or modify the proposed two-year budget. Council changes would be subject to Mayoral veto and Council override as specified in the Charter. For each fiscal year of the two-year cycle, the Council will approve the amount appropriated in the budget for the upcoming fiscal year, by resolution, on or before June 1, subject to Mayoral veto and Council override provisions. ● Capital Infrastructure Plan (CIP): Currently, the City is not required to have a capital plan for City infrastructure projects. The measure would require the City to establish a CIP by ordinance. The ordinance would include the scope, timeframe, funds, and reporting requirements for the CIP. Projects may include constructing or improving City roads, parks, bridges, and buildings. ● Competitive Bidding: Currently, the Charter requires the City to comply with competitive contract bidding rules, such as awarding contracts to qualified businesses for the lowest cost. The measure adds an exception to these rules for software services or maintenance contracts obtained from the software manufacturer. The measure also allows the City, by ordinance, to create an exception to the rules for certain critical infrastructure contracts that are vital to the City’s security, public health, or safety. ● Department of Public Works (Department) Governance: Currently, the Charter establishes a full-time Board of Public Works (Board) that is assisted by several bureau heads and the Director of Public Works (Director) to oversee the Department. This measure would increase the Director’s powers and duties to: directly manage public works project construction, including the lease or purchase of property; exercise the power of eminent domain, subject to Council approval; oversee contract administration; grant street permits; and recommend operating budgets for the Department. Conversely, some of the Board’s authority would be transferred to the Director, but the Board would retain some of its duties, such as: approving the award of contracts; conducting hearings as authorized by ordinance; approving, in consultation with the Director, specifications for public works projects; and making recommendations about public works plans to the Director, Mayor and Council. The measure also authorizes the Council, by ordinance, to make changes to or eliminate the Board. Additionally, the measure eliminates the chief administrative officer designation for the bureau heads, consistent with the proposed powers and duties of the Director. ● Business Operations: Currently, the Charter prohibits the City from mortgaging City-owned property and prevents the City from operating purely commercial or industrial businesses. The measure would remove these restrictions to allow the City to utilize City-owned assets and engage in commercial or industrial businesses. ● Contracting Forms: Currently, when outside companies bid on City contracts, they are required to submit specific forms. This measure would allow the City, by ordinance, to waive or allow correction of minor technical or administrative errors before evaluating a contract proposal. Substantive errors in ethics forms, however, cannot be waived and must be fully corrected. This measure will become effective if approved by a majority of voters.

FINANCIAL IMPACT STATEMENT BY MATTHEW W. SZABO, CITY ADMINISTRATIVE OFFICER This measure establishes a capital infrastructure plan, shifts the City to a two-year budget cycle, expands the authority of the Director of Public Works, and allows the City to engage in business enterprises, mortgage City property, and modify contracting procedures. Transitioning to the two-year budget cycle and establishing a capital infrastructure plan will require an estimated $4 million to $6 million in one-time costs to upgrade budget and asset management systems, train staff, and consult with subject matter experts. Funding will come from the General Fund, subject to approval by the Mayor and City Council through the budget process. Ongoing expenses for these two elements of the measure, such as project management, will be absorbed by reorganizing existing resources. The financial and revenue impacts of the remaining charter amendments—including contracting changes, property mortgages, and business enterprises—cannot be quantified at this time.

ARGUMENT IN FAVOR OF CHARTER AMENDMENT LA Vote YES on Measure LA to require City Hall to deliver better basic services, fix deteriorating infrastructure faster, and make smarter use of taxpayer dollars. Los Angeles cannot tackle billions of dollars in needed infrastructure repairs or get its finances on stronger footing without a plan for what needs to get done, what it will cost, and who is responsible for delivering it. Angelenos see what happens when the City fails to plan ahead. It takes the City years to repave streets, fix sidewalks and streetlights, and address ongoing maintenance, often waiting until problems are harder and more expensive to fix. Measure LA fixes that. It requires Los Angeles to plan ahead. It establishes long-term infrastructure planning so the City can prioritize repairs, address maintenance before problems become more expensive, and move projects forward with clear responsibility for getting the work done. It also requires two-year budgeting so City leaders consider tomorrow’s costs when making decisions today. And it removes outdated Charter restrictions that make it harder for Los Angeles to operate efficiently and make taxpayer dollars go further. Measure LA will not fix every pothole overnight. But better streets, sidewalks, infrastructure, and City services start with better planning, clearer accountability, and smarter budgeting. We have spent years digging into City budgets, auditing programs, overseeing departments, and fighting for better infrastructure. We have seen firsthand what gets in the way. We believe these reforms will help Los Angeles deliver better results for the people who live here. Vote YES on Measure LA. PERSONS SIGNING ARGUMENT IN FAVOR OF CHARTER AMENDMENT LA KENNETH MEJIA KATY YAROSLAVSKY Controller LA City Councilmember City of Los Angeles City of Los Angeles BOB BLUMENFIELD JESSICA MEANEY LA City Councilmember Executive Director City of Los Angeles Investing in Place RON GALPERIN DAVID LEVITUS Former City Controller CEO City of Los Angeles LA Forward MICHAEL SCHNEIDER CEO Streets For All Arguments printed are the opinions of the authors and are not checked for accuracy by any City agency. In addition, the title beneath a signer’s name is for identification purposes only and does not indicate that the individual is signing on behalf of the organization.

ARGUMENT AGAINST CHARTER AMENDMENT LA At a time when Los Angeles has experienced repeated corruption scandals and public trust in City Hall has been damaged, we should be strengthening transparency and accountability not eliminating independent oversight. If approved, Charter Amendment LA would give the City Council the authority to eliminate the Board of Public Works and consolidate its powers under a single individual. The Board was established to provide independent review of City contracting, with decisions made in public meetings subject to California’s open meeting laws. Removing this important check and balance would reduce public scrutiny and weaken accountability over billions of tax payer dollars for public projects. Supporters of this Charter Amendment point to reforms like a Capital Improvement Plan, but that change can be implemented without amending the Charter. Los Angeles needs more transparency, more oversight, and stronger protections against abuse, not fewer safeguards. Vote NO on Charter Amendment LA. PERSONS SIGNING ARGUMENT AGAINST CHARTER AMENDMENT LA MONICA RODRIGUEZ Los Angeles City Councilwoman, District 7 City of Los Angeles Arguments printed are the opinions of the authors and are not checked for accuracy by any City agency. In addition, the title beneath a signer’s name is for identification purposes only and does not indicate that the individual is signing on behalf of the organization.

REBUTTAL TO THE ARGUMENT AGAINST CHARTER AMENDMENT LA The opposition gets one thing right: Los Angeles has relied on the same fragmented system to oversee its infrastructure for generations. Responsibility is spread across multiple officials, commissions, agencies, and bureaus. Angelenos see the results in crumbling streets, buckled sidewalks, and streetlights that stay dark. Measure LA changes that. It requires one Citywide long-term infrastructure program and two- year budgeting so Los Angeles sets clear priorities, identifies the projects that need to get done, and plans how to fund them over time. It also puts one Director in charge of coordinating Public Works and delivering that plan. The Director reports to the Mayor and City Council and remains subject to oversight by the inde- pendently elected City Controller. Angelenos will know who is responsible for getting streets repaved, sidewalks repaired, streetlights fixed, and projects delivered. Accountability means a clear plan, clear responsibility, and clear oversight. PERSONS SIGNING REBUTTAL TO THE ARGUMENT AGAINST CHARTER AMENDMENT LA KENNETH MEJIA Controller City of Los Angeles BOB BLUMENFIELD LA City Councilmember, President Pro-Tempore City of Los Angeles RON GALPERIN Former City Controller MICHAEL SCHNEIDER CEO Streets For All KATY YAROSLAVSKY LA City Councilmember City of Los Angeles JESSICA MEANEY Executive Director Investing in Place DAVID LEVITUS CEO LA Forward Arguments printed are the opinions of the authors and are not checked for accuracy by any City agency. In addition, the title beneath a signer’s name is for identification purposes only and does not indicate that the individual is signing on behalf of the organization.