Tag Archives: Streets and Highways Code 36612

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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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 asked4 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, Hypocrisy

BIDs Benefit Immensely From Coercive Collection Of Mandatory Assessments And Complain Incessantly About Being Subject To The California Public Records Act. They Can’t Have One Without The Other, Yet Both Are Voluntary, So Why Don’t They Grow Up And Quit Whining About The Consequences Of Their Choices?

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A business improvement district (BID) in Los Angeles5 is a geographical area in which the owners of commercial property are assessed an additional fee for various services that aren’t provided by the City. These fees are collected either by the City of L.A. via direct billing6 or, more usually, by the County of Los Angeles as an add-on to property tax bills.

The state law authorizing BIDs requires each BID to be administered by a property owners’ association (POA).7 In the normal course of things these organizations are conjured up by the City at the time the BID is established, although sometimes previously existing nonprofits will end up as a POA. One example of this is the Hollywood Chamber of Commerce, which serves as POA for the East Hollywood BID, although it predates its existence.

The law requires these POAs to be nonprofits, although it doesn’t specify what kind of nonprofit they should be. For various reasons, at least in Los Angeles, they are usually 501(c)(6) organizations. Because the City is handing over what’s essentially tax money to these POAs,8 they have a great deal of control over their activities and what they spend their money on.
Continue reading BIDs Benefit Immensely From Coercive Collection Of Mandatory Assessments And Complain Incessantly About Being Subject To The California Public Records Act. They Can’t Have One Without The Other, Yet Both Are Voluntary, So Why Don’t They Grow Up And Quit Whining About The Consequences Of Their Choices? →

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Announcements, Business Improvement Districts, Los Angeles City Government

Yet Another Example Of City Of LA Indifference To Illegal BID Shenanigans: City Clerk BID Analyst Rita Moreno Hands Out (Literal) Gold Stars To BIDs For Minimal Brown Act Compliance But Doesn’t Do Or Even Say Anything To BIDs Who Are Not Only In Violation Of The Law But Have Been Flouting It For Years On End

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Yesterday evening, BID-lawyer-to-the-stars Jeffrey Charles Briggs passed along almost 200 emails between Media District BID executive director Lisa Schechter and various people at the City of Los Angeles. These are available en masse at Archive.Org. As always, there’s a lot of chaff in there and a few super-interesting things.9 Perhaps today’s story is an example of the latter.

It began on February 28, when Rita Moreno, newly of the Neighborhood and Business Improvement Division of the City Clerk’s office, the unit that’s meant to oversee the operations of BIDs and make sure that they follow the law and stuff, emailed a bunch of BIDdies to introduce herself and note that only a few of them had their meeting times posted on their websites. Of course, the Brown Act explicitly requires BIDs to notice their meetings on their websites,10 but that’s actually not why Rita was on about this. She was just trying to find out when they met so that she could attend. In fact, it’s not even clear that Rita Moreno knew about the Brown Act requirement.

However, the very next day, our old friend Lisa Schechter of the Hollywood Media District BID, who is not generally known for her law-abiding behavior but who has by now been educated by years of our intense scrutiny to the point where, I hope, she’s beginning to realize that it’s just easier to follow the law,11 wrote back to Rita Moreno, fishing for praise from this unlikely authority figure:

Dear Rita:

Just to reiterate, all of our meetings are posted in accordance with the Brown Act (Committee as well as Board) – Further you have been placed on our automatic distribution list which triggers and [sic] email directly to you for all of our meetings. If you should require any further information please do not hesitate to contact myself or our operations manager, Jim Omahen.

And, a couple hours later, Rita Moreno replied:

Yes…you got a star ★

And if you’re new to BID studies, you’re probably wondering why this puerile exchange is not just idiotic, sycophantic, and moronic, but also deeply offensive and discouraging to anyone who cares about the rule of law in Los Angeles. Well, read on!
Continue reading Yet Another Example Of City Of LA Indifference To Illegal BID Shenanigans: City Clerk BID Analyst Rita Moreno Hands Out (Literal) Gold Stars To BIDs For Minimal Brown Act Compliance But Doesn’t Do Or Even Say Anything To BIDs Who Are Not Only In Violation Of The Law But Have Been Flouting It For Years On End →

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Business Improvement Districts, Municipal Ethics

Kosmont Invoices For Gateway To LA BID Reveal How Much Time It Takes To Get A BID Renewed, And It Doesn’t Look Good For BID Consultants, Like Tara Devine, Like Urban Place Consulting, That Are Not Registered As Lobbyists With The City

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Larry Kosmont handled the Gateway to LA BID’s 2014-5 renewal and was, very properly, registered as a lobbyist while doing so.
You may recall that the Los Angeles Municipal Lobbying Ordinance requires qualified lobbyists to register with the City Ethics Commission and also disclose a bunch of interesting information about their clients and their income. Also, the process of establishing or renewing a BID is fairly complex, and most property owners’ associations12 hire a consultant to guide them through the process. These consultants are regulated and recommended by the City Clerk’s office.

The process of getting a BID established or renewed, it turns out, looks an awful lot like the definition of lobbying activity to be found at LAMC §48.02, which is essentially preparing information and discussing it with City officials as part of influencing the passage of municipal legislation. The law requires anyone who’s paid for thirty or more hours of this over three consecutive months to register as a lobbyist, and it’s generally extremely hard to prove that someone’s met this criterion. You may, e.g., recall that earlier this year, in order to make a reasonably convincing case that Venice Beach BID consultant Tara Devine had passed this threshold, I spent months piecing together more than a hundred pages of evidence regarding her BID consultancy work.

But recently it’s occurred to me that these consultants have contracts with the BIDs they service, and that at least in the case of BID renewals, the contracts will be accessible via the Public Records Act.13 The contracts will contain some information about how much time the consultants spend on the project, and thus should be useful as evidence in reporting consultants to the Ethics Commission for lobbying without a license.

The project started to produce results at the end of February, when the incomparable Laurie Hughes of the Gateway to LA BID supplied me with her BID’s contracts with Larry Kosmont, who was handling the renewal process.14 Well, late last week, Laurie Hughes gave me an absolutely essential set of documents, consisting of detailed monthly invoices from Kosmont to the BID during the 15+ month renewal process. These are fascinating,15 containing as they do detailed inventories of every individual task involved in the renewal process broken down into fifteen minute billing increments. Turn the page for more descriptions, discussion, and speculations.
Continue reading Kosmont Invoices For Gateway To LA BID Reveal How Much Time It Takes To Get A BID Renewed, And It Doesn’t Look Good For BID Consultants, Like Tara Devine, Like Urban Place Consulting, That Are Not Registered As Lobbyists With The City →

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Los Angeles City Government, Public Records Act Pragmatics

CPRA Goes Meta: Holly Wolcott Refuses To Release Some Records But Ends Up Releasing Advice Email From Deputy City Attorney Mike Dundas Authorizing Her Refusal

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Holly Wolcott reimagined as a child of the 60s, chanting the Nam Myoho Renge Kyo of her people, which goes like this: “CPRA does not obligate me to answer questions. Only to provide records. CPRA does not obligate me to answer questions. Only to provide records.” HEY HOLLY!! CPRA also does not obligate you to not answer questions…
Perhaps you remember the long and winding narrative of how I spent almost half of last year trying to get the City Clerk’s office to cough up mailing addresses for the property owners in the Venice Beach BID, which they finally did do. There is a reasonable summary with links right here. Today I can reveal a little behind-the-scenes episode in that story.

A few weeks ago, in the middle of about a thousand pages of emails that the City Clerk’s office finally handed over, only about six months after I asked for them, I found this little gem of an email chain. Most of it is me hassling various Clerk staffies for the list of addresses, but right in the middle of it all, there’s an interlude between Holly Wolcott and Deputy City Attorney Mike Dundas, who’s evidently some kind of CPRA specialist over there in City Hall East.16

The TL;DR is that she goes: “Mike, do I gotta give him the goods?” and Mike’s all: “Nah, Holly, you don’t gotta because reasons.” It’s also interesting that the reasons he gives her are specious, providing, among other things, yet another example of how the Property and Business Improvement District Law of 1994 (which makes BIDs subject to CPRA) seems not to be understood so well over at City Hall. You will find some discussion after the break, along with quotes if you’re PDF-averse.
Continue reading CPRA Goes Meta: Holly Wolcott Refuses To Release Some Records But Ends Up Releasing Advice Email From Deputy City Attorney Mike Dundas Authorizing Her Refusal →

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Venice Beach BID

Shadowy BID Consultant Tara Devine Seems To Get Paid About $80,000 For Establishing A BID, Which I Managed To Discover Despite The Fact That She’s So Darned Secretive

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Shadowy BID consultant Tara Devine looks fate’s oncoming train straight in the eye.
There’s an unresolved problem in the application of the California Public Records Act to business improvement districts. The thing is that the Property Owners’ Associations which administer the BIDs are, in part, subject to CPRA because §36612 of the Property and Business Improvement District Law of 1994 makes them so, stating that:

“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. … an owners’ association shall comply with the California Public Records Act … for all records relating to activities of the district.

The problem is that the Owners’ Association doesn’t seem to be required to comply with CPRA until it actually is under contract with the City. This, if accurate, means that the activities of the POA before the BID is approved are largely opaque to scrutiny. And this has been a severe problem in the case of the Venice Beach BID, where a number of people, not just me, have had the experience of CD11 staff,17 City Clerk staff, and even freaking Holly Wolcott herself, falsely denying that the City is involved in the BID formation process at all and telling members of the public that they should therefore seek information from shadowy BID consultant Tara Devine. Tara Devine, of course, ignores all requests for information from anyone who seems to be even a little skeptical about the benefits of BIDs.

None of this is the final word on the matter. The only reason that the legislature even made BIDs subject to CPRA is that Aaron Epstein, a brave and determined property owner, sued the living shit out of the Hollywood Property Owners Alliance18 in the 1990s and the Courts determined, in a stunningly righteous decision, that BIDs were subject to both CPRA and the Brown Act. It’s quite possible, perhaps even probable, that if the courts were asked whether or not POAs were subject to CPRA before the contract was signed, they would find that they were. However, that’s not a struggle in which I presently have the resources to engage, so alternative methods of information collection are required.

Fortunately,19 Tara Devine is not a one-BID woman. See, in 2015 the South Park BID was up for renewal.20 The process of BID renewal is essentially the same as the process for BID establishment, with the huge difference that it’s carried out by a POA that’s already under contract with the City, and is thus subject to CPRA. And thus was it possible to gather surprisingly much information about how Tara Devine conducts her dangerous business!21 Continue reading Shadowy BID Consultant Tara Devine Seems To Get Paid About $80,000 For Establishing A BID, Which I Managed To Discover Despite The Fact That She’s So Darned Secretive →

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Business Improvement Districts, Hypocrisy, Los Angeles City Government

Miranda Paster Whitewashed Homelessness Out Of The Hollywood Media District BID’s 2017 Annual Planning Report, Thereby Unilaterally Altering The BID’s Proposed Activities And Yet Again Putting The Lie To Holly Wolcott’s Often-Used But Thoroughly Discredited Excuse That The City Of LA Has No Control Over BIDs

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Los Angeles City Clerk Holly Wolcott interpreting the Property and Business Improvement Law of 1994.
One of the many interesting documents contained in the yield of a recent CPRA request to the Hollywood Media District BID is their 2017 Annual Planning Report, the final revised version of which was filed by executive director Lisa Schechter with the City Clerk’s office on December 14, 2016.22 The annual submission of these reports is required by §36650 of the California Streets and Highways Code, part of the Property and Business Improvement District Law of 1994, which regulates the establishment and governance of BIDs in California.

One of the purposes of these reports is to keep the City updated on what the BID plans to do during the new year. In particular, at §36650(b)(2) the law states:

The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information: … The improvements, maintenance, and activities to be provided for that fiscal year.

So for instance, the Media District’s plan explains what they’re going to do about cleaning and security, which are two of the core functions of BIDs. Here’s part of their statement on cleaning:

Other expenditures anticipated include tree trimming, purchase of additional trash receptacle, and other similar projects to beautify the District in accordance with the approved Management District Plan.

And part of their statement on security:

Safe Committee meetings address a full range of issues: loitering, public urination, drinking in public, prostitution, vandalism, graffiti, and quality of life issues.

Continue reading Miranda Paster Whitewashed Homelessness Out Of The Hollywood Media District BID’s 2017 Annual Planning Report, Thereby Unilaterally Altering The BID’s Proposed Activities And Yet Again Putting The Lie To Holly Wolcott’s Often-Used But Thoroughly Discredited Excuse That The City Of LA Has No Control Over BIDs →

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Municipal Ethics, Public Records Act Pragmatics

California Government Code Section 1222 Is A New (To Us) Governmental Integrity Law Of Which Chad Molnar’s CPRA Shenanigans Constitute A Violation, Making Him Not Only Unethical But An Actual Criminal And Potentially Even Subject To Citizen’s Arrest!!

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Chad Molnar in June 2016, just smiling away because it hasn't yet occurred to him that he is going to jail.
Chad Molnar in June 2016, just smiling away because it hasn’t yet occurred to him that he is going to jail.
Perhaps you’ve been following along with our LAMC 49.5.5(A) project, in which we turn various City officials and employees in to the LA City Ethics Commission for violating that most lovely government accountability ordinance, LAMC 49.5.5(A) by misusing their positions in various ways. Well, just recently, via the fine folks at the Coalition to Preserve L.A., I learned of a possibly even more funner law, which may allow City employees not only to get fined by the CEC for violating CPRA, but actually locked up for it! Ladies and gentlemen, loyal MK.Org readers, may I present to you the stunning law known to the world as California Government Code Section 1222, which states in full:

Every wilful omission to perform any duty enjoined by law upon any public officer, or person holding any public trust or employment, where no special provision is made for the punishment of such delinquency, is punishable as a misdemeanor.

The potential here is astounding. You see, there is “no special provision…made for the punishment of” a failure to comply with CPRA. This is in contrast to, e.g., the Brown Act, which does contain a clause making certain kinds of violations misdemeanors.23 However, the duty to comply with CPRA is “enjoined by law upon” public officers. For instance, the California Constitution at Article I, section 3(b) states pretty unequivocally that:

In order to ensure public access to the meetings of public bodies and the writings of public officials and agencies, as specified in paragraph (1), each local agency is hereby required to comply with the California Public Records Act …

Now, this law requires24 that the failure to act be wilful. But, of course, that’s where we have Chad Molnar dead to rights. If you didn’t read the whole story, you can at least read the smoking gun, in which Chad Molnar actually states explicitly that he’s not going to comply with CPRA and that he doesn’t think he has to comply. And note that this is not just him not complying with some vague part of the law, proof of violation of which would require a fact-finder, but him not complying with objectively clear, explicitly mandated, response deadlines. He just flat-out says he’s not going to respond as required. It’s hard to imagine a more wilful violation than that.

So anyway, as soon as possible, I hope this weekend, I’m going to write up a complaint and figure out what to do with it. Perhaps I’ll try the neighborhood prosecutor in Venice. They do handle misdemeanors, after all. This probably won’t work so well, and then I’ll send it to Jackie Lacey’s Public Integrity Division. I’ll keep you up-to-date. And if you’re still interested, turn the page for even more wildly uninformed speculation.25 Continue reading California Government Code Section 1222 Is A New (To Us) Governmental Integrity Law Of Which Chad Molnar’s CPRA Shenanigans Constitute A Violation, Making Him Not Only Unethical But An Actual Criminal And Potentially Even Subject To Citizen’s Arrest!! →

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