Tag Archives: Streets and Highways Code 36622

Business Improvement Districts, Los Angeles City Government

Apparently The City Attorney Of Los Angeles Has Opined That Business Improvement Districts Can’t Spend Money On Things That Aren’t In Their Management District Plans Unless The Plans Are Amended — At Least That’s What Shadowy BID Consultant Tara Devine Said In 2012 And Why Would She Lie About That?

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When business improvement districts in California are created, it’s required by the Property and Business Improvement District Act of 1994 at §36622 to file a so-called management district plan (MDP) with the City. This is meant to describe exactly what the BID is going to spend its money on, and it’s incorporated into the City’s Ordinance of Establishment, by which means the BID is created. It must be approved by the City Council, and the City has the power to revise it at will. The law makes it pretty clear that BIDs are actually forbidden from spending money on activities that aren’t in the MDP, although this facet of the law is generally ignored by the City.

And I’m presently working on a project that requires a close reading of invoices submitted by Tara Devine1 to the South Park BID over the years, which I obtained last month as the fruit of a CPRA request.2 Although 2012 is outside the timeline I’m working on, I was fascinated to note that Tara Devine seems to have been engaged by the South Park BID to actually write that year’s annual planning report3 for them. One of the things that she billed for in the course of performing her contract to do so Tara Devine billed for was a conversation with accounting firm RBZ, since merged with Armanino, and the subject of that conversation was wholly new to me:
Continue reading Apparently The City Attorney Of Los Angeles Has Opined That Business Improvement Districts Can’t Spend Money On Things That Aren’t In Their Management District Plans Unless The Plans Are Amended — At Least That’s What Shadowy BID Consultant Tara Devine Said In 2012 And Why Would She Lie About That? →

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Business Improvement Districts

San Pedro BID Renewal Petition Drive Materials Available Including Blank Petitions And Information Sheets

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This is just a quick note to announce the availability of a first batch of renewal materials from the San Pedro Historic Waterfront BID. They’re available here on Archive.Org. These are from the petition phase, where property owners holding $1 more than 50% of the total assessed value have to petition City Council to renew their BID. I’m collecting material like this as part of a long-term project to send out countermailings when BIDs send out mailings in favor of establishment or renewal. They uniformly send blank petitions on which the only choice is to vote yes. See this sample, for instance.1

I think it would be reasonable, effective, and entertaining to send out petitions on which the only choice was no. Of course, the way the petition phase of BID renewal/establishment is structured, not voting is the same as voting no, but nevertheless, it would be politically valuable to see that property owners have a choice. In order to carry out this plan, it will also be necessary to have quick access to natively formatted copies of the mailing lists that the BIDs use. They have historically been exceedingly reluctant to give up this information.

You may, e.g., recall the fact that it took me five months of nagging Miranda Paster at the City Clerk’s office to get her to give me the mailing list for Venice Beach.2 In that case as in every other case where I’ve actually managed to obtain mailing lists, it came too late to be useful. But at some point, and this is the main reason this is a long term project, I will have convinced the BIDdies3 that they have to hand over mailing lists promptly so that they’re still politically useful.

Naturally, when sending out alt-petition forms, it will be necessary to send out alt-propaganda. Just take a look at the San Pedro BID’s info sheet that they sent out along with the petitions. Count the lies. Imagine an alt-petition that not only invites property owners to vote no on the BID but also informs them what their money’s really being spent for like, e.g., to to keep criminals from getting arrested because they can’t put out their own damn dumpster fires!

Every BID wastes its money on exactly that kind of nonsense, never publicized. This kind of campaign probably won’t stop any BIDs, but it may well increase the protest rate, which would be interesting indeed! And turn the page for links to all the items with a little bit of commentary.
Continue reading San Pedro BID Renewal Petition Drive Materials Available Including Blank Petitions And Information Sheets →

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Business Improvement Districts, Municipal Ethics

In Which I Present A General Argument That BID Consultancy Is Lobbying Activity In Order To Simplify And Regularize The Process Of Reporting BID Consultants To The Ethics Commission For Failure To Register

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It’s a long term project of mine to turn in as many BID consultants as possible to the City Ethics Commission for failing to register as lobbyists. So far, though, I’ve only managed to report Tara Devine for her work on the Venice Beach BID because the work is so involved. Such a report has two essential components:

  1. An argument that BID consultancy satisfies the definition of lobbying activity found in the the Municipal Lobbying Ordinance at LAMC §48.02.
  2. An argument that a specific BID consultant was paid for sufficiently many hours over sufficiently few months to trigger the registration requirement found in the MLO at LAMC §48.07(A).

It occurred to me recently that the first argument will be the same for all BID consultants, and that therefore it would be possible to streamline the reporting process by writing it up in a generic format that would apply to any given BID consultant. So that’s what I did, and you can read the result here. I will be using this to make a number of complaints against BID consultants in the near future, which I will report on here.

Meanwhile, if you have no idea what I’m talking about, you can find explanations of everything after the break, along with a fairly detailed summary of the argument that BID consultancy qualifies as lobbying under the MLO.
Continue reading In Which I Present A General Argument That BID Consultancy Is Lobbying Activity In Order To Simplify And Regularize The Process Of Reporting BID Consultants To The Ethics Commission For Failure To Register →

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Business Improvement Districts

Why It’s Quite Likely That Blair Besten Broke A Number Of Laws By Lobbying The City Of Los Angeles Over Skid Row On Behalf Of The HCBID Board Of Directors In November 2016 And Arguably Even Committed A Misdemeanor

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Blair Besten rocking the Pharcyde.
So a couple weeks ago I wrote about an episode in November 2016 when Blair Besten, executive directrix of the good old Historic Core BID, at the behest of her Board of Directors, lobbied the City of Los Angeles about incentives for Skid Row development which included a seemingly endless list of wet fever dreams like no taxes ever, no height limits, no required affordable housing, and so on. Well, then someone posted my post to the Facebook asking, among other things, if Blair Besten’s lobbying was even legal. The post unleashed a deluge of stranger-danger visits to our cozy and haimish little blog and the usual slew of idiotic comments by the usual slew of unselfaware idiot commentators over on the Facebook itself.

Well, Mom had a favorite saying about wrestling with a pig, and that goes doubletime for arguing with the Facebook commentariat. So we all just ignored the whole mishegoss until, as will sometimes happen, it occurred to me that one of the most ignorant offensive mansplainy clueless wrong-headed imaginary-internet-lawyerly comments of all would provide a perfect foil for a post that I had been meaning to write for a while now anyway, and that’s how we ended up right here and now, friends.

The dimwitted commenter asked1 the OP: “What specific actions of hers do you think are of questionable legality?” This is one of them Internet comments that’s supposed to make the reader say something like “Hmmm…. now that I read that incisive question I can see that I really am a foolish dupe after all and the only reason I even had an opinion is because no very smart fellow ever challenged me… OK, I retract every idea I have ever had!!

However, as it happens, there are a number of ways in which Blair Besten’s specific action of lobbying the City on behalf of her employers with respect to development conditions on Skid Row violated various laws. For better or for worse, the discussion is unavoidably technical, and you gotta turn the page if you wanna read it!
Continue reading Why It’s Quite Likely That Blair Besten Broke A Number Of Laws By Lobbying The City Of Los Angeles Over Skid Row On Behalf Of The HCBID Board Of Directors In November 2016 And Arguably Even Committed A Misdemeanor →

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Business Improvement Districts, Historical and Theoretical Perspectives

Why Are BIDs In Los Angeles Allowed To Pay For Their Renewal Out Of Current Assessments? It Seems To Be Some Kind Of Pernicious Circular Reasoning And May Well Violate The Law

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I’m presently working on a number of fairly involved projects which relate to the establishment and renewal processes for BIDs. There’ll be more news on that later, but, tangentially, in the course of my research I’ve noticed that BIDs that are up for renewal tend to state the fact in their Annual Planning Reports (“APRs”). Just for instance, here’s the Fashion District’s 2017 APR. In there, on page 3, you can see BID renewal under the heading “Management/City Fees (Zones 1-9): $487,795.00 (10.67%).”

It’s only recently that I’ve come to understand the importance of these APRs. First of all, BIDs in California are required by State law to produce them. According to the Streets and Highways Code at §36650(a):

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.

In the laconic dialect of the law, this seems to say that assessments are to be spent on “improvements, maintenance, and activities” if and only if they are listed in the APR. This is one reason these APRs are essential to understanding the operations of BIDs. They’re explicitly forbidden from spending money on matters not listed in the APR and they’re explicitly required to carry out matters that are listed. This is possibly part of the reason why the City exercises hyperspecific control over the content of APRs even as they categorically refuse to exercise any control whatsoever even over overt malfeasance by BIDs.

And elsewhere in the law, specifically at §36622(k)(2), we find a statement of the infamous “special benefits” requirement for property-based BIDs:

In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable …

So BIDs are required to spend money on activities listed in the APR and all money they spend must be spent on special benefits to the property owners. Therefore the presence of BID renewal as a fundable activity in the APR implies that BID renewal in itself must be a special benefit to the property owners.
Continue reading Why Are BIDs In Los Angeles Allowed To Pay For Their Renewal Out Of Current Assessments? It Seems To Be Some Kind Of Pernicious Circular Reasoning And May Well Violate The Law →

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Business Improvement Districts

The San Pedro BID Is Paying BID Consultant Edward Henning Only $20,000 To Handle Their Impending Renewal. This Is 64% Less Than The Fashion District Will Pay Urban Place Consulting And 75% Less Than The South Park BID Will Pay Tara Devine. Why The Huge Variation In Compensation For A Job Whose Elements Are Delineated By The City?

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You may recall that Edward Henning is an engineer who works with a number of BID consultants on BID establishment and renewal, writing the engineer’s reports required by Streets and Highways Code §36622(n). I’ve previously reported, e.g., that he seems to get paid about $9,000 for writing these things.1 Well, TIL that Ed Henning is also a BID consultant his own self!

The story begins with Lorena Parker, executive director of the San Pedro Historic Waterfront BID, sending me the contract that Ed Henning and her BID signed for consulting services, along with some ancillary information:

These materials are also available on the Archive, which is useful because of OCR and so forth. And that’s today’s goodies. Turn the page for discussion!
Continue reading The San Pedro BID Is Paying BID Consultant Edward Henning Only $20,000 To Handle Their Impending Renewal. This Is 64% Less Than The Fashion District Will Pay Urban Place Consulting And 75% Less Than The South Park BID Will Pay Tara Devine. Why The Huge Variation In Compensation For A Job Whose Elements Are Delineated By The City? →

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Fashion District BID, Municipal Ethics

Urban Place Consulting Set To Earn $55,712.20 For Dealing With The 2017/2018 Fashion District BID Renewal Process According To Contract, Which May Also Shed Light On The Intersection Between BID Consultancy And L.A.’s Muncipal Lobbying Ordinance

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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.

Apart from the general interest created by the essential role that BID renewal plays in the life cycle of BIDs, this kind of data is also crucial to my ongoing study of the intersection between the BID renewal process in Los Angeles and the Municipal Lobbying Ordinance. Turn the page for a brief discussion of those issues as well as a brief outline of the renewal process itself.
Continue reading Urban Place Consulting Set To Earn $55,712.20 For Dealing With The 2017/2018 Fashion District BID Renewal Process According To Contract, Which May Also Shed Light On The Intersection Between BID Consultancy And L.A.’s Muncipal Lobbying Ordinance →

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Business Improvement Districts

BID Consulting Engineer Ed Henning Seems To Earn $9,000 For A BID Renewal/Establishment. Also A Bunch Of Board Minutes From The Historic Core Reveal … Nothing! But We Have ‘Em Anyway!

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Blair Besten of the Historic Core BID — a colorful character, to be sure, but somewhat repetitive…
Earlier this week, not-so-shadowy BID consultant Susan Levi, who among other things serves as the Executive Director of the South Los Angeles Industrial Tract BID, sent me a copy of the SLAIT BID’s transactions by vendor from January 2013. The most interesting item, or at least the item I’m presently most interested in right now, appears on page 3, under “Edward Henning & Associates.” Edward Henning, of course, is a consulting engineer and seems to have made something of a career of preparing the engineering reports which are mandated by the Property and Business Improvement District Law of 1994 at §36622(n) for BID establishments.1 A little arithmetic reveals that the SLAIT BID paid Henning $9,000 for their 2015 renewal. This is roughly 10% of the approximately $80,000 which the consultant seems to earn. There’s no moral to this story, at least not yet. It’s merely the latest datapoint I’ve collected in my attempt to understand the finances of BID establishment and renewal.

Also recently I received a bunch of minutes from the Board meetings of the Historic Core BID, and you can turn the page for a link and some brief comments.
Continue reading BID Consulting Engineer Ed Henning Seems To Earn $9,000 For A BID Renewal/Establishment. Also A Bunch Of Board Minutes From The Historic Core Reveal … Nothing! But We Have ‘Em Anyway! →

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