Final Reports & Recommendations

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Final Reports & Recommendations FINAL REPORTS & RECOMMENDATIONS RE: BUSINESS & ECONOMIC DEVELOPMENT and COLLECTIONS & EFFICIENCIES EIGHT REPORTS OF THE CITY OF LOS ANGELES AD HOC COMMISSION ON REVENUE EFFICIENCY Ron Galperin, Chair Hon. Cindy Miscikowski, Vice Chair Mark Ames, Commissioner David Farrar, Commissioner Michael Gagan, Commissioner Cheryl Parisi, Commissioner Brandon Shamim, Commissioner www.core.lacity.org March 2012 COMMISSIONERS Ron Galperin (Chair) concurrently serves as President of the L.A. City Quality & Productivity Commission and as a member of L.A. County’s Quality & Productivity Commission. He is Vice President of the Bel Air-Beverly Crest Neighborhood Council, a member of the United Way / L.A. Area Chamber of Commerce Homelessness Task Force, and former Chair of the L.A. Jewish Federation’s anti-hunger initiative. Mr. Galperin is an attorney, business owner, Cantor and the author of hundreds of articles for The L.A. Times, L.A. Business Journal and other local and national publications. (Councilmember Garcetti appointee) Hon. Cindy Miscikowski (Vice Chair) represented the 11th District on the Los Angeles City Council from 1997 through 2005. Previously, she was an aide to Councilman Marvin Braude and the Executive Director of the Skirball Cultural Center. She is currently the President of the Board of Harbor Commissioners, overseeing the Port of Los Angeles. (Mayor Villaraigosa appointee) Mark Ames is a private investor. From 1993 through June 2007, he worked for Lehman Brothers where he was a Managing Director in the Fixed Income Division, working both in New York and London. During his time at Lehman, Mr. Ames ran various businesses within Fixed Income and has extensive experience in finance, corporate credit and securitization. He was a member of the Global Fixed Income Operating Committee and the European Fixed Income Operating Committee. Mr. Ames has a BA in Economics from Princeton University. (Mayor Villaraigosa appointee) David Farrar served of counsel at Linebarger, Goggan, Blair & Sampson, LLP, a law firm which specializes in collecting government receivables. In 1998, Mr. Farrar served as a member of Los Angeles County's Economy and Efficiency Commission. He has also served as Chairman of the Los Angeles Community Redevelopment Commission as well as an appointee to the Board of the Metropolitan Water District of Southern California. (Councilmember Koretz appointee) Michael Gagan is the founder of Kindel Gagan, a public affairs consulting firm. He has previously served as Chief Deputy State Treasurer under Jess Unruh and as Chief Deputy Secretary of State under March Fong Eu. While working for Treasurer Unruh, Mr. Gagan served on thirty-five financing boards and commissions as well as the governing boards of CalPERS and STRS. (Councilmember Parks appointee) Cheryl Parisi is the Executive Director of AFSCME District Council 36. Ms. Parisi also chairs the Coalition of L.A. City Unions comprised of six unions representing 22,000 City employees. The Coalition is the voice of L.A. City workers championing quality City services for L.A.’s diverse communities. (Councilmember Garcetti appointee) Brandon Shamim is the President and CEO of Beacon Management Group and Chairman of the Small Business Council for the Greater Los Angeles Area Chamber of Commerce. He served as a U.S. Department of Commerce director, worked at a national public policy think tank and is a professor at UC Riverside's Institute for Global Business Management. (Controller Greuel appointee) EXECUTIVE SUMMARY OF REPORTS PROJECTED REVENUE & SAVINGS IMPACTS he City of Los Angeles Ad-Hoc Commission on Revenue Efficiency (CORE) was formed in the spring of 2010 to evaluate and recommend improvements in collections, billing and new revenues. Comprised of Tseven volunteer Commissioners, CORE issued its Blueprint for Reform of City Collections in the fall of 2010, identifying potential revenues and savings of up to $100 million annually. The Commission has concluded its second and final phase of work with eight comprehensive reports – four focused on Business & Economic Development and another four on Collections & Efficiencies. These eight reports identify and detail the potential for additional combined revenues and savings of $100 million annually – with opportunities for up to $350 million* in such additional revenues and savings annually: BUSINESS & ECONOMIC DEVELOPMENT: 1. Promoting Local Procurement and Business Preference Review: Dollars & Jobs Lost by the City in Contracts with non-L.A. Businesses for Goods & Services – Proposals to generate more business opportunities and sales tax revenues for the City. CORE estimates the potential for combined revenues and savings of at least $10 - $15 million annually – with significant opportunities for in excess of $100 million annually. (Jobs & Business Development) ** 2. Survey of City Departments & Bureaus: Strategies to Foster Efficiencies & Innovations – CORE’s survey of all City departments and bureaus for their best new revenue and savings ideas. This report summarizes the responses, highlights the ideas and offers ways to encourage and support more entrepreneurial initiatives. CORE estimates the potential for combined revenues and savings of approximately $25 million annually – with significant opportunities for in excess of $100 million annually. (Budget & Finance / Audits & Governmental Efficiency) 3. Assessing Business-Related Police Permits & Fees – Opportunities to streamline and simplify the currently 59 distinct police permits for local businesses. CORE estimates the potential for combined revenues and savings of approximately $1 - $5 million annually. (Jobs & Business Development / Public Safety) 4. Failure to Manage City Properties Leased to Non-Profits: Time for Accountability – Evaluation of the more than 100 City-owned properties occupied rent-free. CORE estimates the potential for combined revenues and savings of at least $1 - $5 million annually. (Information Technology & General Services / Budget & Finance / Arts, Parks, Health & Aging) COLLECTIONS & EFFICIENCIES: 5. Lost in the Parking Lot: Stopping Rogue Parking Operators from Stealing Our Tax Dollars – Options for reform of collections, ordinances, etc. CORE estimates the potential for combined revenues and savings of $20 - $30 million annually. (Audits & Governmental Efficiency / Budget & Finance) 6. Managing Our Money: Intergovernmental Revenue Sources – Strategies to monitor & maximize City revenues from (a) real property, business personal property, documentary transfer and sales taxes, and (b) court fees/fines. CORE estimates the potential for combined revenues and savings of $40 - $100 million annually. (Budget & Finance) 7. Improving Collection of Unpaid Parking Tickets: Rental Cars & New Technologies -Recommendations to improve collections on parking tickets issued to rented vehicles and use of new technologies. CORE estimates the potential for combined revenues and savings of $3 - $10 million annually. (Budget & Finance / Transportation) 8. Follow-up to C.O.R.E.’s Blueprint for Reform of City Collections -- Status report on implementation of C.O.R.E.’s Oct. 2010 Blueprint and Accompanying Recommendations Tracker. Per the Blueprint, CORE estimates the potential for combined revenues and savings of $10 - $25 million in the coming fiscal year, and within three years, as much as $100 million or more annually. (Budget & Finance / Audits & Governmental Efficiency) Ad Hoc Commission on Revenue Efficiency Ron Galperin, Chair Hon. Cindy Miscikowski, Vice Chair Mark Ames, Commissioner David Farrar, Commissioner Michael Gagan, Commissioner March 2012 Cheryl Parisi, Commissioner Brandon Shamim, Commissioner Website: http://core.lacity.org/ * Each report describes the enquiries, assumptions and conditions upon which evaluation of estimates of potential revenues and savings are necessarily based. ** City Council Committee(s) to which reports might be assigned, and/or with interests in the respective subject matters thereof. March 22, 2012 The Honorable Antonio Villaraigosa, Mayor The Honorable Wendy Greuel, City Controller The Honorable Carmen Trutanich, City Attorney Honorable Members of the City Council FINAL REPORTS & SUMMARY OF WORK The City of Los Angeles Ad-Hoc Hoc Commission on Revenue Efficiency (CORE) is pleased to report that it has completed its work and herewith submits its Final Reports and Summary of Work. A. EIGHT FINAL REPORTS In the fall of 2010, CORE completed its first phase of work in issuing the Commission’s Blueprint for Reform of City Collections -- identifying potential revenues and savings of up to $100 million annually. As of January 2012, the Commission has concluded its second and final phase of work with eight comprehensive reports – four focused on Business & Economic Development and another four on Collections & Efficiencies. These eight reports identify and detail the potential for additional combined revenues and savings of $100 annually – with opportunities for up to $350 million1 in such additional revenues and savings annually. Attached hereto is a 1-page Summary of Reports & Projected Revenue & Savings Impacts. Copies of all eight Final Reports, Appendices and the Blueprint – along with copies of archived Commission Agendas, Minutes and background and research documents and reports are all available on the Commission’s website: www.core.lacity.org. Each of the Final Reports have also been individually transmitted through the City Clerk and distributed to the City offices, Department(s) and Council Committee(s)
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