Category Archives: Municipal Ethics

Business Improvement Districts, Municipal Ethics

It Appears That East Hollywood BID Director Nicole Shahenian Lied To Los Angeles City Clerk Holly Wolcott About The Circumstances Of The Preparation Of The EHBID’s 2015 Annual Planning Report And, As Shahenian Was A Registered Lobbyist At The Time, Thereby Violated LAMC 48.04(B)

March 12, 2017 Mike Leave a comment

Nicole Shahenian, you got some splainin’ to do!

The background to this post is unavoidably technical and lengthy. If you’re already familiar with the Annual Planning Report process for BIDs as mandated by Streets and Highways Code §36650, you may want to skip directly to the report I submitted to the City Ethics Commission this morning.

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.

But there are a number of problems with this story. First, it appears that the East Hollywood BID Board of Directors did not actually meet on December 29, 2014. In fact, it appears that they did not meet at all in December 2014. Of course, it’s notoriously difficult to prove a negative, but I’m going to give it a go.
Continue reading It Appears That East Hollywood BID Director Nicole Shahenian Lied To Los Angeles City Clerk Holly Wolcott About The Circumstances Of The Preparation Of The EHBID’s 2015 Annual Planning Report And, As Shahenian Was A Registered Lobbyist At The Time, Thereby Violated LAMC 48.04(B) →

Central City East Association, Municipal Ethics

The Story Of How The Central City East Association Evidently Violated City Ethics Laws Restricting Campaign Contributions, Gave Illegally To Mitch O’Farrell and Marqueece Harris-Dawson In 2015, Lied About It On Their Tax Form, And I Turned Them In To The IRS And The Ethics Commission

March 9, 2017 Mike Leave a comment

CCEA: The truth may be out there but it’s not out there on our tax forms.

This story begins with the fact that the Central City East Association, which runs the infamous Downtown Industrial District BID, contributed $700 each to two City Council candidate campaigns in 2015. The money was given to Mitch O’Farrell of CD13 and Marqueece Harris-Dawson of CD8. You can see the record at the City Ethics Commission and also if it’s more convenient, here is a PDF of the same information.

This turns out to be a huge problem for a number of unrelated reasons. First and most simply, the CCEA is a nonprofit 501(c)(6) organization. Unlike the more famous 501(c)(3) organizations, 501(c)(6) groups are allowed to engage in lobbying, but it’s unclear whether they’re allowed to support candidates for office.¹ However, irrespective of any restrictions on donations, there are very clear reporting requirements.

Take a look at the CCEA’s 2015 tax form. In particular, take a look at question 3 of part IV, found on page 3 of the form. It asks unambiguously:

Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office?

And, as you can see in the image that appears somewhere near this paragraph, the CCEA unambiguously stated that they did not. It’s hard to imagine a less ambiguous form of direct political campaign activities than giving actual money, amirite? Hence I turned them in to the IRS and also to the Franchise Tax Board for this lacuna. Stay tuned in case anything happens!

And it turns out that there are some more subtle, but potentially equally serious, problems with these two donations involving various municipal laws. Turn the page for the highly sordid but highly technical details!² Continue reading The Story Of How The Central City East Association Evidently Violated City Ethics Laws Restricting Campaign Contributions, Gave Illegally To Mitch O’Farrell and Marqueece Harris-Dawson In 2015, Lied About It On Their Tax Form, And I Turned Them In To The IRS And The Ethics Commission →

Business Improvement Districts, Municipal Ethics

Is There Such A Thing As An Honest Lobbyist? Probably Not, But Nevertheless, Larry Kosmont Handled The Gateway To LA BID’s Recent Renewal And Registered With The Ethics Commission To Do So, Casting Further Doubt On Any Theory That Implies That Shadowy BID Consultant Tara Devine Was Not Also Required To Register

February 27, 2017 Mike Leave a comment

We’ve been discussing BID consultants a lot recently because of shadowy BID consultant Tara Devine and the fact that it looks so much like BID consultancy satisfies the LAMC’s definition of lobbying that it’s very likely that she broke the laws requiring registration, causing me, in the throes of a well-developed sense of civic duty, to report her transgressions to the Ethics Commission and then again to report some associated transgressions to Mike Feuer. What will come of these matters no one can now know, of course, but one aspect that troubled me slightly is the apparent novelty of the charges. That is, all the BID consultants I knew of at the time weren’t registered. This doesn’t mean they don’t have to register. After all, consider what happened with BID security and the Police Commission as a result of our reporting. But nevertheless, one never wants to be the first to make an argument if it’s possible to avoid it.

So imagine my pleasure in discovering that, first, the famous Gateway to LA BID, one of Mike Bonin’s babies out there by the Airport in CD11, renewed for 10 years in 2015, and they used a BID consultant named Larry Kosmont to handle the process for them. And second, that Larry Kosmont was not only registered as a lobbyist during this process, but that he specifically, explicitly, disclosed his work for the Gateway BID to the City and specifically, explicitly listed the City Clerk as one of the City offices he’d lobbied in furtherance of the renewal project. This is going to make it a lot harder for Tara Devine and her defenders, if any she has by now, to argue that it never occurred to anyone that BID consultants were lobbyists and therefore subject to registration. Turn the page for links to all relevant documents!
Continue reading Is There Such A Thing As An Honest Lobbyist? Probably Not, But Nevertheless, Larry Kosmont Handled The Gateway To LA BID’s Recent Renewal And Registered With The Ethics Commission To Do So, Casting Further Doubt On Any Theory That Implies That Shadowy BID Consultant Tara Devine Was Not Also Required To Register →

Municipal Ethics

How Ethics Commission President Jessica Levinson Postponed Discussion Of Revisions To Enforcement Regulations Until April 2017 Mostly At The Behest Of Lobbying Firms And Why She Was Absolutely Right To Do So

February 25, 2017 Mike Leave a comment

Ethics Commission President Jessica Levinson, with whose actions we do not always agree but with whose reasoning we always do, which matters a great deal more.

One of the essential items on the agenda of last Tuesday’s meeting of the City Ethics Commission was a wide-ranging set of proposals from Enforcement staff for revisions to the CEC’s enforcement regulations. These are the laws and policies which guide the enforcement process. The proposals were emailed to interested parties only a few days in advance of the meeting, evidently leaving everyone feeling kind of blindsided,³ especially because they appeared with a recommendation from staff that they be adopted right then.

So at the actual meeting, when the item came up for discussion, Commission President Jessica Levinson made fairly convincing noises to the effect that the matter should be postponed until April. More interestingly, though, she mentioned almost in passing that she’d received a number of written public comments asking the Commission to table the matter. Well, one of my favorite bits of the Brown Act, §54957.5(a), states unequivocally that:⁴
any … writings, when distributed to all, or a majority of all, of the members of a legislative body of a local agency by any person in connection with a matter subject to discussion or consideration at an open meeting of the body, are disclosable public records under the California Public Records Act … and shall be made available upon request without delay.

As one might expect, the Ethics Commission is absolutely the best of all City agencies at following this law. They keep a big plastic box at the back of the room during meetings which contains every possible piece of paper necessary for compliance. So as soon as President Levinson⁵ mentioned that there were written comments, and as soon as it became clear that all the Commissioners had copies, I zipped back to look in the box. How disappointing to find nothing of the sort in there! But the story has a happy ending, never fear, and turn the page to learn the details.
Continue reading How Ethics Commission President Jessica Levinson Postponed Discussion Of Revisions To Enforcement Regulations Until April 2017 Mostly At The Behest Of Lobbying Firms And Why She Was Absolutely Right To Do So →

Los Angeles City Government, Municipal Ethics, Venice Beach BID

Open Letter To Holly Wolcott and Miranda Paster Concerning Tara Devine’s Misleading Everyone With Her Discredited “Zoning Not Use” Theory

February 23, 2017 Mike Leave a comment

Holly Wolcott in her bully pulpit, explaining it all to you!

Here’s a letter I sent this morning to Holly Wolcott and Miranda Paster about Tara Devine misleading everyone with respect to the question of whether commercial properties were necessarily included in the Venice Beach BID. There’s a transcription after the break, as always, for the PDF averse.

This is a fairly serious matter, and actually illegal if it turns out to be the case that Tara Devine was required to register as a lobbyist last year, as I have alleged that she was. The point is that since the Clerk’s office is supposed to oversee BIDs, they ought to oversee BID consultants as well, and since both honesty and integrity are explicit criteria for qualifying as a BID consultant perhaps these two ought to look into whether Tara Devine is actually qualified. Turn the page for a transcription.
Continue reading Open Letter To Holly Wolcott and Miranda Paster Concerning Tara Devine’s Misleading Everyone With Her Discredited “Zoning Not Use” Theory →

Municipal Ethics, Venice Beach BID

How I Reported Shadowy BID Consultant Tara Devine To Los Angeles City Attorney Mike Feuer For Knowingly And Fraudently Deceiving Mike Bonin With Regard To A Material Fact Pertinent To The Establishment Of The Star-Crossed Venice Beach BID

February 23, 2017 Mike Leave a comment

“I’ll be damned if I’m ever going to say, ‘It’s not my job,’” Feuer told the Times editorial board. We like that attitude. All L.A. residents should.

If you want to skip the explaining and go straight to the complaint, here it is.

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.⁶ 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.

Well, as you may recall, I spent the last two months assembling a highly detailed argument that Tara Devine met this definition. If that’s right, and I certainly think that it is, she’s also forbidden from fraudulently deceiving Mike Bonin, e.g., about material facts in regard to the formation of the Venice Beach BID which, as I’m sure you know, requires legislation for the BID to be brought into existence.

The argument is that she got everyone to believe that it was required under state law to include commercially zoned properties in the BID, even though not only is this not true, not only did she know it was not true, but her having convinced everyone of this led to more properties being in the BID, which increased the amount of money under the control of her clients, the Venice Beach Property Owners Association. If you’re still interested enough to follow me into the weeds, turn the page!
Continue reading How I Reported Shadowy BID Consultant Tara Devine To Los Angeles City Attorney Mike Feuer For Knowingly And Fraudently Deceiving Mike Bonin With Regard To A Material Fact Pertinent To The Establishment Of The Star-Crossed Venice Beach BID →

Business Improvement Districts, Cory Spencer v. Lunada Bay Boys, Municipal Ethics

Almost 200 Emails Between the City Of LA And the East Hollywood BID. Also, Lunada Bay Boys Hearing Tomorrow And Also Ethics Commission Meeting!

February 20, 2017 Mike Leave a comment

Dwarf bottlebrush plant from some plans that the East Hollywood BID exchanged with a bunch of lackeys at the City of LA in preparation for planting them along Vermont Avenue, most likely to thwart the homeless in some manner.

Tonight I had the pleasure of receiving from self-proclaimed active member of the revitalized Hollywood community⁷ Jeffrey Charles Briggs almost 200 emails between the East Hollywood Business Improvement District and various far-too-friendly folks at the City of Los Angeles. For now these are available here on Archive.Org. They’re PDFs, but they’re that super-PDF-format that one can make with genuine Adobe software that embeds attachments right in there with clickable links.⁸ I have only been able to give these a cursory look-over, but I can already see a few crucial items. I’ll be writing on these matters as soon as I possibly can, but if you want a preview of one of them take a look at this juicy little number.

And tomorrow is a huge day at the Civic Center. ~~In the morning there is a hearing in the Lunada Bay Boys case, featuring Palos Verdes Peninsula zillionaire surf-localism-thuggery at its most flamboyantly weird.~~ In the afternoon there is an essential meeting of the Ethics Commission. Turn the page for times, locations, and brief descriptions. Perhaps I’ll see you there!
Continue reading Almost 200 Emails Between the City Of LA And the East Hollywood BID. Also, ~~Lunada Bay Boys Hearing Tomorrow~~ And Also Ethics Commission Meeting! →

Business Improvement Districts, Municipal Ethics

Shadowy BID Consultant Tara Devine Moonlights As A Planning And Zoning Lobbyist, Also Unregistered!

February 17, 2017 Mike Leave a comment

A recently discovered shadowectomized portrait of shadowy BID consultant Tara Devine by French Fauvist painter Raoul Dufy, who never drew a shadow in his entire career.

As Karl Marx so wisely pointed out once upon a time⁹ crime is a career like any other. One reason is that there’s a learning curve. It takes some experience to be able to make crime pay. And the same, it seems, is true for unregistered lobbyists like our perennial subject, shadowy BID consultant Tara Devine. I reported last week that I had turned Tara Devine in to the Ethics Commission based on exhaustive research that indicated that she had spent more than 30 compensated hours over three consecutive months in 2016 lobbying for the Venice Beach BID without having registered with the City.

And I really thought I had found most of the relevant evidence,¹⁰ but it turns out that I was ever so wrong. Just last night I discovered, never mind how, that Tara Devine not only does shadowy BID consultancy, she also represents permission-seeking clients before planning boards. You can see details, dates, and so on after the break!
Continue reading Shadowy BID Consultant Tara Devine Moonlights As A Planning And Zoning Lobbyist, Also Unregistered! →

Los Angeles City Government, Municipal Ethics

Open Letter To Holly Wolcott And Miranda Paster Concerning The Question Of Whether BID Consultants Qualify As Lobbyists And What The Proper Course Of Action Might Be If They Do

February 7, 2017 Mike Leave a comment

A pseudo-artistic computer-modified image of Los Angeles City Clerk Holly Wolcott.

Here’s a letter I sent this morning to Holly Wolcott and Miranda Paster concerning the question of whether BID consultants qualify as lobbyists for the purposes of complying with the Municipal Lobbying Ordinance. My feeling, of course, is that they do qualify, they ought to register with the City, they should be punished for the fact that they have not done so, and the City staff who work with them without insisting that they register ought to be busted for aiding and abetting. But since evidently this has never occurred to anyone before, I thought it would be decent to give everyone involved a chance to assess their own risk in choosing a course of action. Hence this letter. There’s a transcription with live links after the break if you don’t want to deal with a PDF.
Continue reading →

Municipal Ethics, Venice Beach BID

How I Reported Shadowy BID Consultant Tara Devine To The City Ethics Commission For Failing To Register As A Lobbyist Based On Her Work For The Venice Beach Property Owners Association

February 6, 2017 Mike 3 Comments

Tara Devine at the Venice Beach BID hearing on August 23, 2016, a day on which she engaged in at least 2.5 hours of lobbying activity.

The TL;DR is that I believe that in the course of her consultancy with the Venice Beach BID, Tara Devine qualified as a lobbyist within the meaning of the Los Angeles Municipal Lobbying Ordinance, was therefore required to register with the Ethics Commission, and failed to do so, putting her in violation of the law. If you know what all those terms mean, you may want to go straight to the complaint (Warning: 23MB PDF). For a detailed explanation of the background, though, read on!

The key is found in Section 48.07, which states that “An individual who qualifies as a lobbyist shall register with the City Ethics Commission within 10 days after the end of the calendar month in which the individual qualifies as a lobbyist.” After all, anyone can search the Ethics Commission’s database and see that Tara Devine has never registered as a lobbyist. So the question is whether Tara Devine is “An individual who qualifies as a lobbyist.” This turns out to be a fairly complicated thing to determine.

The first place to start when interpreting any law is with the definitions. In the case of the Municipal Lobbying Ordinance (henceforth “MLO”) they are found at LAMC §48.02. In particular, we will find that the word “lobbyist”:

means 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.

And in order to see whether this applies to Tara Devine, we need to understand the following terms:

Lobbying activities

Municipal legislation

Attempting to influence

And once we understand what those three phrases mean, we have to show that Tara Devine was paid for 30 or more hours lobbying on behalf of someone else. The details, as always, are after the break!
Continue reading How I Reported Shadowy BID Consultant Tara Devine To The City Ethics Commission For Failing To Register As A Lobbyist Based On Her Work For The Venice Beach Property Owners Association →