Tag Archives: LAMC 48.07

Business Improvement Districts, Municipal Ethics

Hundreds Of Emails Between Melrose BID And The City Of LA Include (1) Definitive Proof That Executive Director Don Duckworth Violated The Municipal Lobbying Ordinance In 2013 But Unfortunately The Statute Of Limitations Has Effectively Run And (2) More Brown-Act-Violating Bylaws That No One At The Clerk’s Office, For Shame, Seems To Have Even Noticed

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Donald Duckworth, who runs both the Westchester Town Center BID and the Melrose BID, is slow but, it seems, pretty steady about fulfilling my incessant CPRA requests. And thus, just yesterday I received from him four jumbo-sized mbox files just chock-full of gooey email goodness! This batch comprises 2016 emails between the City of LA and the Melrose BID, and can be found in various useful formats here on Archive.Org.

I will be writing about various items in this document dump soon enough,1 but today I just want to focus on a couple of interesting items, supplied to me as attachments to some of these emails and cleaned up a little for ease of reading.2 Here’s the short version, and you can find details and the usual ranting mockery after the break:

  • Melrose BID Formation Project Hourly Charge Breakdown — Don Duckworth not only runs the Melrose BID, he was also the consultant who oversaw its establishment, for which he seems to have been paid $80,000 by the City. This is a detailed breakdown of his hours and charges over the course of the project formation. If you’ve been following my ongoing project, aimed at turning in BID consultants for not registering as lobbyists,3 you’ll recognize how astonishing and how important this document is. Unfortunately Don Duckworth’s work on this project wound down in the Summer of 2013, which means that the four year statute of limitations for violations of the Municipal Lobbying Ordinance has essentially run out. The document will be endlessly useful, though, in estimating time spent by consultants on their other projects.
  • Melrose Business Improvement Association bylaws — The Melrose Business Improvement Association is the property owners’ association that administers the Melrose BID. These are their bylaws. I discovered recently that the freaking Larchmont Village BID had bylaws that directly contradicted the Brown Act. Now it turns out that the Melrose BID has precisely the same problem. It’s possible that Larchmont Village changed their ways, but so far, anyway, there’s no reason to suspect that Melrose has done.

Continue reading Hundreds Of Emails Between Melrose BID And The City Of LA Include (1) Definitive Proof That Executive Director Don Duckworth Violated The Municipal Lobbying Ordinance In 2013 But Unfortunately The Statute Of Limitations Has Effectively Run And (2) More Brown-Act-Violating Bylaws That No One At The Clerk’s Office, For Shame, Seems To Have Even Noticed →

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Announcements, Fashion District BID, Municipal Ethics

New MK.Org Coffee Mug Honoring Leron Gubler And The Hollywood Chamber Of Commerce For Being Extra Super Duper Law Abiding, Also Tons Of New Fashion District BID Emails

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My recent post about the Hollywood Chamber of Commerce and its lobbying disclosure activity was so popular, or at least the picture that accompanied the post was so popular, that, effectively although not actually by popular demand, we here at MK.Org created yet another souvenir gift mug, an accessory with which you too can tell the world that you’re opposed to bad BIDness in Los Angeles and also is very handy for the drinking of coffee and other hot beverages! We here at MK.Org feel that this item has the potential to outsell our current bestselling item, the Blair Besten anti-CPRA award mug. Help us make that dream come true, friends!

Turn the page for link to newly obtained emails from the Fashion District.
Continue reading New MK.Org Coffee Mug Honoring Leron Gubler And The Hollywood Chamber Of Commerce For Being Extra Super Duper Law Abiding, Also Tons Of New Fashion District BID Emails →

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Business Improvement Districts, Municipal Ethics

The Hollywood Chamber Of Commerce Amended Its Lobbying Registration Form in April 2017 And The Only Change Was The Date They Qualified — More Interesting, Though, Is The Fact That They Consider Their Pro-Establishment Advocacy For Jeff Zarrinnam’s Inchoate Hollywood-Western And Route 66 BIDs To Be Lobbying Activity

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It’s well-known that the Municipal Lobbying Ordinance requires lobbyists of all stripes to register with the City Ethics Commission. The Hollywood Chamber of Commerce is no exception to the rule.4 They are also required to amend their registration forms if there are any material changes in the information provided.5

And as you know if you follow this blog, I find everything to do with lobbyists in Los Angeles fascinating, and thus I haunt the Ethics Commission’s lobbying pages, poring over the alphabetical lists of individual lobbyists and of lobbyist firms and employers to see if anything’s changed or if something is newly interesting.

And lo! Last night I noticed that our old friends, the Hollywood Chamber of Commerce, had amended their registration form on April 28. Here are the two forms:

Well, I stared and stared and stared at those two forms just trying to figure out what had changed. Eventually I noticed that the original form had January 31, 2017 as the date they’d qualified as a lobbying entity6 whereas the amended version had January 1, 2017 as the day of qualifying.

One of the Hollywood Chamber’s registration forms superimposed on the other with 38% opacity so that it’s clear that the only difference is in the qualifying date. Click to enlarge, of course.
There’s a lot of information on the forms, though, and I didn’t feel confident that the difference I’d noticed was in fact the only difference. I wasn’t sure what do to until this morning, when it occurred to me that if I put both pages into the GIMP, superimposed one on top of the other, and then faded the opacity up and down I’d be able to notice what changed.7 And it turns out that in fact, it’s correct that the only change was the date of the Hollywood Chamber’s qualifying as a lobbyist.

Which leads irresistibly to the question of why Leron Gubler and/or Nicole Shahenian, who are the Hollywood Chamber’s two registered lobbyists, felt the need to make this tiny change. Read on for speculations and some other chit-chat about the fact that Leron Gubler lists the establishment of the Hollywood Western and the Route 66 BIDs as issues the Chamber is lobbying for this year.
Continue reading The Hollywood Chamber Of Commerce Amended Its Lobbying Registration Form in April 2017 And The Only Change Was The Date They Qualified — More Interesting, Though, Is The Fact That They Consider Their Pro-Establishment Advocacy For Jeff Zarrinnam’s Inchoate Hollywood-Western And Route 66 BIDs To Be Lobbying Activity →

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Fashion District BID, Public Records Act Pragmatics

The Fascinating Story Of How It Took Three Months And A Demand Letter From An Attorney To Get Rena Leddy To Disclose That The Fashion District BID Is Paying Steve Gibson Of Urban Place Consulting $215 Per Hour For BID Renewal Consulting, Which Is Less Than Larry Kosmont Gets But More Than Ed Henning

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Late last year it occurred to me that BID consultants, who help BIDs with the City processes necessary to establish or renew a BID, are essentially engaging in lobbying activity as defined in the Municipal Lobbying Ordinance at LAMC §48.02 and yet none of them8 seemed to be registered with the Ethics Commission as required by LAMC §48.07(A).

I then spent months piecing together over 100 pages of evidence to show that BID consultant Tara Devine had violated this law. Subsequently it occurred to me that the contracts that the consultants sign with BIDs would provide essential evidence that they’d been acting as lobbyists, so I determined to request these from many renewing BIDs. This led me to the discovery, thanks to the incomparable Laurie Hughes of the Gateway to LA BID, that GTLA’s BID consultant, Larry Kosmont, actually was registered as a lobbyist and had disclosed his BID consultancy as lobbying in his required reporting. The San Pedro BID is also up for renewal, and has recently released a fairly complete set of BID renewal records.

This brings us to the Fashion District. On February 21, 2017 I emailed Rena Leddy to request, among other material:

… all records associated with the renewal process, including but not limited to communications between the BID and the consultant and/or the engineer, contracts with and invoices from the consultant or the engineer, materials prepared by the consultant or the engineer for the renewal process, databases and mailing lists prepared or used by the consultant or the engineer, and also any communications between the consultant and the engineer that aren’t already responsive to the first part of this request.

The story of what happened after that stretched out over three months and generated many many megabytes of discussion. Read on for a (far too) detailed and exceedingly well-documented narrative recounting, complete with a happy, happy ending!
Continue reading The Fascinating Story Of How It Took Three Months And A Demand Letter From An Attorney To Get Rena Leddy To Disclose That The Fashion District BID Is Paying Steve Gibson Of Urban Place Consulting $215 Per Hour For BID Renewal Consulting, Which Is Less Than Larry Kosmont Gets But More Than Ed Henning →

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Business Improvement Districts, Municipal Ethics

Relatively Complete Set Of Records Pertaining To Ongoing San Pedro Historic Waterfront BID Renewal Process Reveals Hitherto Unknown Details About Costs, Hours, Contract Terms, Etc. Heralding Plausible Case Against Edward Henning For Failure To Register As A Lobbyist But Not, Unfortunately, Against The BID Because They’re Not Paying Him Enough

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Last month I learned that the San Pedro BID was paying Edward Henning $20,000 to handle their BID renewal process. This discovery was independently interesting, but also important for my ongoing research project of learning everything possible about BID consultancy with the ultimate goal of shopping as many BID consultants to the City Ethics Commission as possible, mostly for violations of LAMC §48.07, which requires that “[a]n 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.”

In this clause, someone “qualifies as a lobbyist” when they, according to LAMC §48.02 are “compensated to spend 30 or more hours in any consecutive three-month period engaged in lobbying activities.”9 Note that today I’m mostly skipping the argument that BID consultancy qualifies as lobbying activities, but you can read about it in excruciating detail here.

Part of the evidence that I obtained last month were these two invoices from Edward Henning to the SPHWBID. As you can see, they span the time period from March 2016 through December 12, 2016 and bill for a total of 75 hours. That’s roughly 7.5 hours per month if distributed evenly across the billing period. This is not enough evidence to show that Edward Henning was required to register. In fact, if he did work about 7.5 hours a month he would not have been so required.

It’s precisely that issue that today’s document release shines some light on. The other day, San Pedro BID executive directrix Lorena Parker was kind enough to send me over 100 emails to and from Edward Henning.10 At first I thought I’d be able to pick out 3 consecutive months in which Edward Henning was compensated for 30 hours by assuming that the number of emails in a month was proportional to the number of hours worked. This didn’t pan out for a number of reasons, not least because I don’t yet have emails between Edward Henning and the City of LA that weren’t CC-ed to Lorena Parker. I can tell from internal evidence that there are some of these,11 and I have a pending CPRA request for them, but they’re not yet in hand.

Read on for more detail on the unregistered lobbying case as well as a new theory that I thought at first might actually get the BID itself in some trouble rather than just the consultant. I don’t think it’ll work out in this particular case, but it has interesting implications for the future. Bad scene for the BIDdies and lulz12 all round for humanity!
Continue reading Relatively Complete Set Of Records Pertaining To Ongoing San Pedro Historic Waterfront BID Renewal Process Reveals Hitherto Unknown Details About Costs, Hours, Contract Terms, Etc. Heralding Plausible Case Against Edward Henning For Failure To Register As A Lobbyist But Not, Unfortunately, Against The BID Because They’re Not Paying Him Enough →

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Business Improvement Districts, Hypocrisy, Skid Row Neighborhood Council

Historic Core BID Executive Directrix Blair Besten Seems OK With The Crimes Of Her Employers, E.g. HCBID Board Members Ruben “The Homicidal Slumlord” Islas And Michael “Asshole Buddy With Ultra-Corrupt Tax Assessor John Noguez” Delijani, Even While Claiming That “The increase in crime lowers the morale of the neighborhood”

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The fact that, as I reported on Friday, Blair Besten, batty little fusspot queen of the Historic Core BID, along with her ne’er-do-well companions in corruption, Estela Lopez and Michael Delijani, were meeting as early as January 2017 with CD14 Councilswordsman José Huizar to oppose the Skid Row Neighborhood Council more or less overshadowed the parallel discovery that, at roughly the same time, Ms. Blair Besten was also setting up a meeting between Mr. José and Ruben Islas, one of her bosses from the HCBID Board of Directors.13

Now, Ruben “the homicidal slumlord” Islas is famous not just for whatever it is he does to be a zillionaire, but also for the fact that he and a bunch of his co-conspirators were arrested and charged with manslaughter and a host of other crimes in 2010 related to the fact that the slums they were then lording over were in such bad shape that three people died as a result. This incident followed the now-seen-to-be-cruelly-ironic series of criminal counts filed against Islas‘s firm for roughly similar misconduct by then-City-Attorney Rockard Delgadillo, lately working under the table as an anti-human lobbyist for a shadowy Downtown law firm.

And similarly, the other one of Ms. Blair Besten’s bosses whose name has come up a lot recently, that is to say furtive hereditary imperialist downtown zillionaire Michael Delijani, has also availed himself of Blair Besten’s probably-illegally-exercised14 skills at relationship building with CD14 repster15 José Huizar. Just see here for six pages of blathering between Blair Besten and various CD14 staffers about a meeting she’s trying to arrange between the CM and the Delijani.

Michael Delijani has also been involved in some exceedingly shady-if-as-yet-unindicted activities in relation to the deep corruption in the office of the LA County Assessor as personified by former assessor, now jailbird, John Noguez. The details are too involved to discuss here, but essentially Noguez reduced zillionaires’ property tax bills in exchange for campaign contributions, and a bunch of the deals were made at fundraising events for Noguez at Michael Delijani’s house. Delijani himself gave Noguez more than $20,000, and you can draw your own conclusions from that.

As far as I can see, Michael Delijani has never been convicted of a crime related to the bribery of Noguez. And it’s true that Ruben Islas’s manslaughter charges were dropped, and also, as part of a deal in which the corporation itself pleaded guilty, Delgadillo’s criminal charges were also dropped against the firm’s principals, including Ruben “the Alexandria Hotel assassin” Islas. So in some technical sense, these guys are not criminals. But in some strong but nontechnical sense they certainly are criminals, and Blair Besten is certainly a hypocrite when it comes to these zillionaire bad BID boys.
Continue reading Historic Core BID Executive Directrix Blair Besten Seems OK With The Crimes Of Her Employers, E.g. HCBID Board Members Ruben “The Homicidal Slumlord” Islas And Michael “Asshole Buddy With Ultra-Corrupt Tax Assessor John Noguez” Delijani, Even While Claiming That “The increase in crime lowers the morale of the neighborhood” →

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Municipal Ethics, Skid Row Neighborhood Council

Lobbying Firm Liner LLP And Lobbyist Matthew Nichols Seem To Have Violated The LA Muncipal Lobbying Ordinance While Working Against The Skid Row Neighborhood Council On Behalf Of Shady Delaware-Incorporated Anonymous Shell Corporation United DTLA And It Appears At Least Plausible That Rocky Delgadillo Did Also

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The Los Angeles Municipal Lobbying Ordinance, known to the cognoscenti as the MLO and found at Article 8 of the LAMC,16 regulates professional paid lobbyists in the City of Los Angeles.17 It also regulates so-called lobbying firms, which are companies that employ lobbyists to lobby on behalf of paying clients.18

One requirement that the MLO puts on lobbying firms and lobbyists is registration with the City.19 In particular, it is required20 that:

A lobbyist or lobbying firm shall register each client on whose behalf or from which the lobbyist or lobbying firm receives or becomes entitled to receive $250 or more in a calendar quarter for engaging in lobbying activities related to attempting to influence municipal legislation.

Note also that you might rightly wonder if the Skid Row Neighborhood Council Formation process counts as “municipal legislation.” It does, but the reason’s a little technical.21 Also, note that Liner LLP is a lobbying firm and they filed the required registration form for 2017, listing all their clients. And, although Rocky Delgadillo is employed by Liner, he’s not registered as a lobbyist himself. However, when he wrote his famous letter to DONE advocating against the SRNC he wrote as a Liner employee.

It’s almost certain that Liner received the negligible sum of $250 from their client, United DTLA, for their services. According to the MLO,22 then, Liner is required to disclose “The client’s name, business or residence address, and business or residence telephone number” as well as “The item or items of municipal legislation for which the firm was retained to represent the client.” But look again at Liner’s registration form. There is nothing there about their client, United DTLA.

Naturally, though, it’s possible that lobbying firms might add clients after they file their annual registrations. In this case they registered on January 1, 2017, but certainly didn’t start representing United DTLA until around February and quite possibly not until March. The law has a procedure for this kind of thing:23
Lobbyists and lobbying firms shall file amendments to their registration statements within 10 days of any change in information required to be set forth on the registration statement.

Take yet another look at Liner’s registration form. You can see that it was amended on April 27, which is long after Liner’s representation of United DTLA began, but there is no mention of this client. This is the first likely violation of the MLO arising from Liner’s anti-SRNC work.
Continue reading Lobbying Firm Liner LLP And Lobbyist Matthew Nichols Seem To Have Violated The LA Muncipal Lobbying Ordinance While Working Against The Skid Row Neighborhood Council On Behalf Of Shady Delaware-Incorporated Anonymous Shell Corporation United DTLA And It Appears At Least Plausible That Rocky Delgadillo Did Also →

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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)

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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:

  1. 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.
  2. 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) →

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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

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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 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 →

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