The Fashion District BID in Downtown Los Angeles is set to expire at the end of 2018. This means that they’ll be collecting petitions roughly in the first quarter of 2018 and going to City Council approximately in the Summer of 2018. The process is complicated for property-based BIDs and usually requires a consultant, and the consultant has to start early. The Fashion District is using Urban Place Consulting.1 Work began on the process in January 2017.
Thanks to the competence, kindness, and evident commitment to transparency of the Fashion District BID’s executive director, Rena Masten Leddy,2 we have copies of (at least most of) the FDBID’s contract with UPC3 as well as the first three months worth of invoices. You can get these:
Crucially, the contract reveals that the Fashion District will pay UPC more than $55,000 over the course of the two year process. The contract is supposed to include a schedule of hourly rates and the invoices are supposed to include an hourly breakdown, but, at least so far, they do not.
One requirement that the Property and Business Improvement District Law places on BIDs, found at §36650, is the submission of annual planning reports (“APRs”) to the City Council:
The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. … The report shall be filed with the clerk … The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified.
And it seems that the BID isn’t allowed to spend money on stuff that’s not discussed in the APR, so it’s not a trivial matter.
The way this piece of code plays out in Los Angeles is that, first, a BID director submits the APR to the Clerk along with a formulaic cover letter. For instance, here is the one submitted by Nicole Shahenian on December 30, 2014 to accompany the East Hollywood BID’s APR for 2015. This is essentially the same letter submitted by all BIDs:
Dear Ms. Wolcott:
As required by the Property and Business Improvement District Law of 1994, California Streets and Highways Code Section 36650, the Board of Directors of the East Hollywood Business Improvement District has caused this East Hollywood Business Improvement District Annual Planning Report to be prepared at its meeting of December 29, 2014.
And don’t forget that state law requires the City Council to adopt the report either with or without modifications. In Los Angeles this part of the process is initiated by the Clerk sending another form letter to City Council, recommending that they adopt the BID’s APR. It’s my impression that the Clerk doesn’t recommend modifications to the report at this stage. These seem to be handled by Miranda Paster before the APR is submitted to Council, as in this example involving the Media District BID. Anyway, take a look at Holly Wolcott’s January 14, 2015 recommendation to City Council with respect to the East Hollywood BID’s APR. Like every such document, this states:
The attached Annual Planning Report, which was approved by the District’s Board at their meeting on December 29, 2014, complies with the requirements of the State Law and reports that programs will continue, as outlined in the Management District Plan adopted by the District property owners.
And it goes on from there to recommend:
That the City Council:
FIND that the attached Annual Planning Report for the East Hollywood Property Business Improvement District’s 2015 fiscal year complies with the requirements of the State Law.
ADOPT the attached Annual Planning Report for the East Hollywood Property Business Improvement District’s 2015 fiscal year, pursuant to the State Law.
Friends, take a look at the exceedingly fascinating LAMC § 48.04(B). This lovely little slab of ethicalliciousness illegalizes any occasion when a lobbyist might:
Fraudulently deceive or attempt to deceive any City official with regard to any material fact pertinent to any pending or proposed municipal legislation.
And of course, you recall what a lobbyist is, it’s a technical term in this setting.1 Lobbyists are defined in LAMC §48.02 to be:
any individual who is compensated to spend 30 or more hours in any consecutive three-month period engaged in lobbying activities which include at least one direct communication with a City official or employee, conducted either personally or through agents, for the purpose of attempting to influence municipal legislation on behalf of any person.
I have several questions regarding the BID. The information you provided, coupled with the information/misinformation flying around raises a couple of issues that need clearing up.
I’m interested in Mike’s opinion, as well as your own, on any or all of these.
Less than 40 minutes later, David Graham-Caso forwarded the email1 to Debbie Dyner Harris along with a terse note that said:
Can you please send this to the BID consultant to get her help with the answers?
And a mere 13 minutes after that, Debbie Dyner Harris forwarded the email2 to Tara Devine, stating:
Hi Tara. Can you please respond to her? Thanks