Mayor Bass Signs Executive Directive to Help Ensure Major Capital Infrastructure Projects Reach Completion On Time and On Budget

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LOS ANGELES - Mayor Karen Bass signed an executive directive to streamline processes and strengthen efficiency at the City's three proprietary departments: Los Angeles World Airports, the Port of Los Angeles and Los Angeles Department of Water and Power. As Los Angeles prepares for transformative infrastructure investments and major events in the coming years, Mayor Bass' executive directive overhauls outdated review processes, enabling faster decision-making and stronger financial management, without compromising oversight or accountability. These improvements will help ensure that major capital infrastructure projects reach completion on time and within budget.

"From rebuilding in the Palisades to the construction of the Convention Center project, Los Angeles has important capital infrastructure and maintenance projects underway," said Mayor Bass. "This is to ensure that we use every available tool to help LAX and Van Nuys Airport, Port of Los Angeles and Department of Water and Power succeed at delivering infrastructure projects on time and on budget. My executive directive streamlines processes with a new and coordinated approach to keep projects moving on schedule. When City Hall works more effectively and efficiently, we deliver for Angelenos."

The directive lays the operational foundation necessary to support projects by improving the contract review process, coordinates across departments and plans for the future. Executive Directive 15 supersedes a 20-year-old executive directive, reinforcing the Mayor's commitment to championing forward-looking governance to meet the demands of today's L.A., one that is investing billions in infrastructure, growing its economy and preparing for the global stage through key projects including:

• Historic investment in airport asset renewal of critical mechanical, electrical, plumbing, fire protection, infrastructure and utility assets that have reached or exceed their useful life.

• The hardening of public infrastructure to continue driving the fastest natural disaster recovery in modern California history.

• Construction of a goods movement training facility and modernization of the existing cruise terminal, among other efforts at the Port of Los Angeles.

• Innovative design of LAX's Airfield & Terminal Modernization Project (ATMP) to reduce traffic back-ups on surrounding public streets and improve the customer experience.

• Electrification of the modernization and expansion of the Los Angeles Convention Center to revitalize Downtown L.A. and boost the economy.

Bolstering her executive directive, Mayor Bass sent a letter to the City Council calling on Councilmembers to use their legislative powers to further reduce bureaucracy by aligning the authorities of the General Manager and Boards of the Airport and Harbor Department with those of the Department of Water and Power and making some straightforward contracting processes less burdensome. These alignments will save time and money for the Airport and Port as they carry out complex infrastructure and logistics projects.

This week, Mayor Bass took bold action, giving the final approval to modernize and expand the Convention Center. She hailed it as a milestone in Downtown L.A.'s revitalization, which has struggled to recover from slow foot traffic and office space vacancies brought on by the pandemic.

Read the full executive directive here:

EXECUTIVE DIRECTIVE NO. 15

Issue Date: September 24, 2025

Subject:Mayoral Review of Proprietary Department Actions and Streamlining

of Procurement Processes

The City's three Proprietary Departments provide critical services for and contribute greatly to the economy of Los Angeles. The City's best interests are served by ensuring these departments are able to operate efficiently and independently, subject to reasonable and effective oversight.

Pursuant to City Charter Sections 230 and 231, the Mayor serves as the Chief Executive Officer of the City with the power and duty to exercise management authority over all departments, agencies, and appointed offices of the City. It is the Mayor's responsibility to effectively and efficiently manage City departments and be kept apprised of all matters that affect the operations of departments and the City services delivered to constituents. Therefore, the Mayor must be afforded the opportunity to timely review important Proprietary Department matters and meaningfully engage on those matters to ensure they are consistent with City policies and priorities.

Twenty years ago, Mayor Antonio Villaraigosa issued Executive Directive No. 4, which articulated a list of 13 types of matters that must be submitted to the Mayor's Office before review by each Proprietary Department's Board of Commissioners (Board). It also noted that the Mayor's review might include a City Administrative Officer report. Furthermore, Executive Directive No. 4 obligated Proprietary Departments to submit for review proposed annual department budgets and, every two years, a debt accountability and major capital improvement plan. It is time to update and streamline this process and therefore this Executive Directive supersedes Executive Directive No. 4 (Villaraigosa Series).

I hereby direct the Proprietary Departments to submit the following matters to the Mayor's Office for review:

A. Matters Before Consideration by a Proprietary Department's Board

This Executive Directive supersedes Executive Directive No. 4 (Villaraigosa Series). Proprietary Departments shall now only submit matters that require approval of the Council to the Office of the Mayor prior to consideration by its Board. The department's submission to the Mayor's Office shall include a recommendation of the City Administrator Officer if required pursuant to the provision below. The Mayor's Office shall complete its review within 15 business days of the Proprietary Department's submission, as long as the submission included all information required for the review. The Mayor's Office may extend this time upon notice to the Proprietary Department's General Manager. The Proprietary Department shall identify time sensitive matters and request a shorter time for review to the Mayor's Legislative Coordinator with justification, which the Mayor's Office shall accommodate if possible. If the Mayor's Office does not complete its review within the 15 business days, or as extended by the Mayor's Office, the Proprietary Department may proceed to take the matter to its Board for consideration and action.

1. The following types of matters submitted to the Mayor's Office pursuant to the above shall be accompanied by a recommendation from the City Administrative Officer:

   1. Personal or professional services contracts that exceed $40 million and construction contracts that exceed $100 million. This includes amendments to contracts that would cause the aggregate value to exceed the above thresholds.

   2. Leases that exceed 40 years in duration. This includes amendments to leases that would cause the aggregate duration to exceed 40 years.

   3. Agreements between a Proprietary Department and another department that may affect the operations, expenditures or revenues of either department.

1. The requirement to obtain a recommendation from the City Administrative Officer shall be waived in the following circumstances:

   1. The Mayor's Office grants a waiver to the Proprietary Department, or

   2. The City Administrative Officer is unable to provide its recommendation to the Proprietary Department within 15 business days of the department providing all necessary information to the City Administrative Officer.

The Mayor's Office may request a recommendation from the City Administrative Officer for a matter that is below the stated thresholds on a case-by-case basis.

B. Interdepartmental Approvals

Before any department seeks to impose a new rule, policy or practice that is likely to have a material impact on a Proprietary Department's projects, finances or operation, the department shall provide written notice to the Mayor's Legislative Coordinator and the affected Proprietary Department describing the new rule, policy or practice and why it is necessary. The department shall not impose the new rule, policy or practice until the department completes a consultation with the Mayor's Office and the affected Proprietary Department.

C. Annual Budget Submittals

Proposed budget submittals of the Proprietary Departments are due to the Mayor's Office and the City Administrative Officer no later than April 30 of each year and prior to submission to the City Council. These submittals must contain a detailed listing of the Proprietary Department's programs and related receipts and expenditures, the number and job classification of positions assigned to each program, a description of capital and operating programs linked to expenditures, anticipated borrowings, debt service coverage, and other key financial statistics, rate, tariff, revenue requirements, fee increases and organizational changes.

D. Debt Accountability and Capital Improvement Plan

Every two years, in conjunction with the submission of its annual budget, each Proprietary Department shall submit a debt accountability and major capital improvement plan to the Mayor's Office, the Council, the City Controller and the City Administrative Officer. The plan shall contain the following elements:

1. A listing of each project for the upcoming five-year period,

2. Total project cost, funding sources and phasing by fiscal year,

3. The anticipated impact of the five-year Capital Improvement Plan on ongoing operations and maintenance costs, and

4. The anticipated financing plan for completion of the five-year program and its impact on overall departmental debt capacity and project debt service coverage.
   

Executed this 24^th day of September 2025

__________________________

KAREN BASS

Mayor

Supersedes the following Executive Directive: Villaraigosa Series: No. 4 dated October 20, 2005