office of the city administrative...

REPORT FROM

Date:

To:

From:

Reference:

Subject:

SUMMARY

OFFICE OF THE CITY ADMINISTRATIVE OFFICER

June 21, 2013 GAO File No. 0110-00800-000 Council File No. 12-0692 Council District: 9

The Mayor The Council , /P Miguel A. Santana, City Administrative Officer ~~ ~"--:v Request for Proposal for the Management and Operations of the Los Angeles Convention Center; C.F. 12-0692

RESPONSE TO SMG PROTEST LETTER

On December 12, 2012, the Mayor and Council instructed the City Administrative Officer (CAO) to release a Request for Proposal (RFP) for the Management and Operation of the Los Angeles Convention Center (LACC). The Council also approved: (1) An enhanced governance structure for the LACC; (2) A new Executive Director position to supervise the management of the facility, Citywide Convention strategies, and the Los Angeles Tourism and Convention Board contract; and (3) The revised Booking and Discount operating policies.

On December 21, 2012, the CAO released the RFP and two firms responded. After review for responsiveness on the required information, one firm, Anschutz Entertainment Group (AEG) Facilities was deemed non-responsive upon advice of the City Attorney as no information was provided for "Financial Sustainability". The City Attorney further advised the CAO to conclude AEG Facilities' participation in the RFP process. AEG issued a letter disagreeing with the conclusion that its submittal was non-responsive (Attachment 1).

On April 22, 2013, a joint special meeting of the Budget and Finance and Trade, Commerce and Tourism (TCT) Committees considered the CAO report dated April 16, 2013 (Attachment 2), relative to the RFP for the management and operation of the LACC, which addressed the protest filed by AEG. The Committees recommended and the Council instructed the CAO to re-issue the RFP for the management and operation of the LACC, with a 30 days submittal deadline.

On April 25, 2013, the CAO re-issued the RFP and two firms, Anschutz Entertainment Group (AEG) and SMG responded by the May 24, 2013 due date. An independent Evaluation Panel (Panel) considered both proposals and recommended AEG. On June 9, 2013, the CAO received correspondence from SMG protesting the proposed selection of AEG (Attachment 3). This report will discuss the five claims made by SMG, which are identified separately numbered paragraphs below. ·,

DISCUSSION

CAO File No.

0110-00800-000

1 - SMG was the Sole Responsive Bidder to RFP No. 0110-00800-0000

PAGE

2

The issue raised by SMG is whether the City's decision to re-issue the RFP affords AEG special treatment and consideration and that the proposed selection of AEG is thereby considered improper. At the last joint Budget and Finance and TCT Committees meeting, upon the advice of the City Attorney, it was decided that it was in the City's best interest to re-issue the RFP. The objective of the re-issuance was to reinstitute a competitive process that might allow the City an opportunity to receive and consider more than one responsive bid. In turn, a competitive process would ensure that the City could select and negotiate final contract terms that would most benefit the City and its taxpayers. Firms that responded to the original RFP, whether deemed responsive or non-responsive, were eligible to participate in the reissued RFP process with the option to supplement their original proposal.

2 -Only SMG has Appropriate and Sufficient Experience and Qualifications, and/or AEG's Experience and Qualifications are Insufficient to Justify the Award.

The RFP's Firm Qualifications required the following:

(i) A minimum of five years of experience managing and operating convention or exhibition facilities in similar markets. A firm that has not been in operation for the minimum of five years was allowed to present a submittal so long as the key personnel can demonstrate the minimum of five years of upper-level management experience.

AEG has managed convention and exhibition centers for over 20 years at the following locations: Brisbane, Cairns, Darwin and Sydney Australia, Kuala Lumpur, Malaysia, and Doha, Qatar. Further AEG has key personnel with upper-level convention center management experience that exceed the five-year requirement.

(ii) Proposers (and/or specified affiliated companies, joint ventures, or subcontractors) should have a minimum of five years of experience providing food and beverage services, inclusive of full-service catering operations, in convention or exhibition facilities in similar markets.

AEG has been providing in-house food and beverage services in all of its convention and exhibition centers for over 20 years. Further, the firm AEG is proposing to sub-contract with a firm that has over 35 years of experience in fine dining restaurant quality food and beverage services to convention centers.

(iii) Similar facilities are defined as a convention or exhibition facility with a minimum of approximately 350,000 square feet of exhibition space and 100,000 square feet of ballroom and meeting room space combined.

GAO File No. PAGE

0110-00800-000 3

AEG manages the Qatar National Convention Center which exceeds the minimum requirements for both exhibition space and ballroom and meeting room space.

Based on the information provided above, the CAO concludes that AEG meets the necessary firm qualifications required by the RFP.

3- AEG has a disqualifying conflict of interest.

The CAO defers to the City Attorney on this matter. Representatives from the Office of the City Attorney will be present during Committee.

4 - The Scoring System and Application of the Scoring System has Deprived the City of Best Value.

The firms were evaluated based on the following criteria, which were equally weighted: (1) Qualifications and Experience, (2) Management Team, (3) Approach and Methodology, and (4) Fee Proposal. Collectively, all four categories are important to ensure the City contracts with the professional management company that provides the best overall benefit to the City and the LACC. The scoring methodology was explicitly described in the RFP.

5 - The Evaluation Panel lacked proper expertise.

The CAO selected a Panel that represented several interest groups and sectors impacted by the business generated from the LACC. The Panel consisted of members with economic development, entertainment, labor and public service backgrounds. Further, the CAO engaged experts in convention center management, which provided expertise and background on convention industry practices and facilities

RECOMMENDATION

That the Council find that the protest presented by SMG has no merit.

Attachments

MAS: OM: 09130302

ATTACHMENT 1

Miguel R. Santana City Administrative Officer City of Los Angeles 200 N. Main St. Suite 1500 Los Angeles, CA 90012-4137

Aprill!,2013

Re: RFP for Management and Operation of the Convention Center

Dear Mr. Santana:

I am writing on behalf of Anschutz Entertainment Group, Inc, (AEG) and our affiliate, AEG Facilities. As you know, AEG Facilities submitted a proposal (Proposal) in response to the Request for Proposal for the Manjlgement and Operation of the Los Angeles Convention Center (RFP). We have reviewed the City's letter to AEG Facilities President Robert Newman, dated March 18,, 2013, which stated that our Proposal was non-responsive to the RFP. We disagree with that conclusion and respectfully ask you to reconsider the decision set forth in that letter.

At the outset, let me say that after a successful relationship with the City dating back over 16 years that includes three of the most successful public-private partnerships perhaps anywhere in the nation, we have the utmost respect for the entire City family, including your office. This letter is intended in that spirit. Together, STAPLES Center, the Convention Center hotels, L.A. Live, and surrounding development in the Los Angeles Sports and Entertainment District represent over $3 billion in private investment and have generated hundreds of millions of dollars in state and local tax revenue over the past 15 years.

A key goal of the City in the original arena transaction was to provide for a master plan development that included a convention center hotel and retail, dining and entertainment uses to invigorate the financial viability of the Convention Center. AEG and the City worked together to make the JW Man-iott and Ritz Carlton Hotels a reality, and L.A. Live the center of entertaimnent in the region. I think we cm1 all agree that these efforts have been extremely successful. In fact, these efforts led to the development of two additional hotels that are under construction today, with plans for a third hotel.currently underway.

Our most recent public-private partnership, the Convention and Event Center Project, will result in the construction of a modern, state-of-art Convention Center and a multi-purpose Event Center that will retum the NFL to Los Angeles. Your office and the City negotiated to ensme that the

800 W. Olympic Blvd.rSuite 305 • Los Angeles, CA 90015·· p. (213) 763-7700 • f. (213) 763-7773

$350 million Convention Center modemization would be at no risk to the general fund. In addition, the Event Center planned for construction on ground-leased Convention Center property would provide additional convention and exhibition space that would move Los Angeles into the very top tier of convention centers around the country. This project represents another $1.3 billion of investment generated by the AEO-led initiative. We were gratified that your office and the Chief Legislative Analyst's oftlcejointly recommended that the Council approve the Convention and Event Center Project and that the City has placed its trust in, and the responsibility on, AEO to rebuild the Convention Center for the people of Los Angeles.

As stated in our Proposal, there are tremendous synergies between our L.A. Live campus and the Convention Center, and AEO is best positioned to enable the City to realize the full benefits of those synergies. No other operator possesses control of L.A. Live's complimentary facilities and AEO's extensive event booking capabilities which are uniquely suited to generate more event activity and improve the performance of the Convention Center in a way that will directly benefit the City and drive the tourism sector that is so important to the region's long-tenn economic health.

With this back drop of its successful execution on major developments in Los Angeles and its on· going operation of large-scale businesses in the City; AEG is surprised to learn that the City would disqualify our Proposal on the basis of financial sustainability. We do respect the fact that in selecting an operator for the Convention Center, the City has set an appropriate goal to ensure the financial sustainability and stability of the operator. (As a private company that has invested billions on and around the Convention Center property, we shm·e that goal too.) However, we do not agree that our Pi·oposal was non-responsive in this regard, as it specifically stated that we would provide financial information.

Of course, as you can appreciate, the confidentiality of AEG financial information is important to us. It was always our intention to provide requisite finm1cial information, but for reasons described below we felt there was a lack of clarity regarding precisely which infonnation was necessary. Because of that ambiguity, our Proposal offered m1 appropriate mechanism to provide relevant information in a manner which would avoid excessive disclosure and protect the confidentiality of sensitive information.

We believe that the RFP's requirements for disclosure of financial information were unclear. We note that the City received a question on this subject as evidenced by Response 37 set forth in Addendum #I to the RFP. Unfortunately, the response issued by the City, namely that the requested information should be provided for the proposer and its "parent and affiliates" only served to introduce greater ambiguity. Did the City really intend that proposers provide the requested Jlnancial information for all of their affiliates? From our perspective, such a requirement would not only be excessively burdensome to proposers, but would be highly inefficient and not particularly helpful to the City in reviewing proposals.

As you know, AEG has scores of different businesses that are owned and operated by its family of affiliated companies (many of which are conducted thmugh different legal entities with their own books and records and distinct financial statements). Without even taking into account affiliates that are under common control but not within the AEG family, AEG has over 100 different subsidiaries through which it conducts a wide variety of businesses around the world (e.g. operations of stadiums, arenas, theatres, hotels and clubs; operation of hockey teams, soccer teams and other sports properties; promotion of music concerts and other live events; development of venues; development of other real estate). To have technically complied with the literal language of this portion of the RFP (as supplemented by Addendum #I) would have been impractical, if not outright impossible, as it would have required furnishing financial statements for numerous operating businesses affiliated with AEG (most of which have no relevance to the financial wherewithal of our proposing entity).

In any event, AEG is willing to provide the requested financial information tor AEG Facilities, its proposing entity, as well as for one or more parent or affiliated entities as deemed necessary by the City.

Your letter stated that to allow us to provide that documentation would be considered an enhancement of the bid. Clearly, how financial documentation is provided in no way affects the amount of the Proposal. Indeed, t11e requested information regards past events, here historical financial documentation, and is not, therefore, an "enhancement" at all. The J1nancial information has not changed since the time the Proposal was submitted. It would appear that the City agrees that finru1cial information can be provided after submittal of proposals. In fact, the RFP provides that the City can require a proposer to provide additional evidence of financial stability. (See RFP page 20.) The City should not be able to have it both ways in deeming the same type of information an inappropriate "enhancement" when offered by a proposer but not when requested by the City. The method by which financial information is communicated to the City should be deemed immaterial or inconsequential to the RFP. It is impossible to see how the method of delivery can be construed as providing an unfair advantage or affecting the economic value of the Proposal.

The City Charter provides the City with discretion to reject any and all bids and proposals and to waive any informality or proposal when to do so "would be to the advantage of the City." Here, it is in the best interest of the City to take into account the long ttack record that AEG has in revitalizing the area surrounding the Convention Center and to determine if this factor outweighs the technical issue of how financial information is delivered. The City has, and should exetcise, the discretion to allow AEG to present financial information at this time in the manner proposed by AEG in its proposal or confidentially in writing.

In addition to the ambiguity regarding financial disclosure, we believe that the RFP was likely inconsistent and incorrect in other areas, as \veil (e.g. attaching the incorrect City Ethics Form as an appendix), potentially rendering all proposals deficient or non-responsive ii1 some respect.

We want to focus on the key issue of what is in the best interest of the City so we do not feel it is appropriate to detail various other concerns with the RFP now-unless you feel that wotlld be useful. Overall, we do not. see how the best interest of the City would be served by allowing teclmical issues to dictate the outcome of a process for such an important asset to the entire City-the Convention Center. To do so would have form prevail over substru1ce. ·

We believe, instead, that the fairest approach would be to allow each proposer to make technical corrections to submission materials without allowing any change in the economic offer made at the time of submission. ·This provides fairness to all proposers for technical compliance but serves the important doctrine that prohibits an enhancement in the value offered to the City after submission of proposals. This balanced approach is in the best interest of the City as it will ensure that the best operator is selected.

In closing, AEG has demonstrated time and again tj1at it meets its goals and carries out its responsibilities, as evidenced by AEG's successful execution of the projects that have revitalized the area surrounding the Convention Center. Even more relevant than forms and documents, sucl1 a track record of performance is core to the City's goal of ensttring that an operator has the Hnancial wherewithal to meet its obligations in successfully managing the operations of the Convention Center.

AEG is uniquely situated in Hnancial strength and experience-and literally in location-to operate the Convention Center. Selection of AEG as the operator would only be the next logical step in cementing the public-private partnerships we have with the Chy that have transformed Los Angeles as a place to visit, and stay, for business, entertainment and sports.

Based on the foregoing, we respectfully request that AEG be allowed to provide the requested financial information and that the City allow all proposers to make technical corrections to the proposals as necessary to resolve the ambiguities and inconsistencies in the RFP and its addenda.

We look forward to your response. Thank you in advance for your thoughtful consideration of this matter.

Very truly yom·s,

<=, _...,_.;;-_ Ted Fikre Vice Chairman Chief Legal and Development Officer

ATTACHMENT 2

REPORT FROM

Date:

To:

From:

Reference:

Subject:

SUMMARY

OFFICE OF THE CITY ADMINISTRATIVE OFFICER

April 16, 2013

The Mayor The Council

CAO File No. 0110-00800-000 Council File No. 12-0692 Council District: 9

Miguel A. Santana, City Administrative Office¥ C · q Council File No. 12-0692 .

· REQUEST FOR PROPOSAL FOR THE MANAGEMENT AND OPERATION OF THE LOS ANGELES CONVENTION CENTER •• AEG LETTER TO NON· RESPONSIVENESS DETERMINATION

On December 12, 2012, the .Mayor' and Council instructed the City Administrative Officer (GAO) to release a Request for Proposal (RFP) for the Management and Operations of the Los Angeles Convention Center (LACC). The Council also approved an enhanced governance structure for the LACC, a new Executive Director' position to supervise the management of the facility, Citywide Convention strategies and the sales and marketing contracts, and two new policies, Booking and Discount.

On December 21, 2012, the GAO released a RFP and two firms responded on the revised due date of March 1, 2013. After review for responsiveness on the required Information, one firm, AEG Facilities, was deemed non-responsive upon the advice of the City Attorney as no information was provided for "Financial Sustainability." On March 18, 2013, the GAO sent a letter informing AEG Facilities that Its submittal was non-responsive (see Attachment 'I for a copy of the letter). The City Attorney further advised the GAO to conclude AEG Facilities' participation in the RFP process.

On April 11, 2013, the City Administrative Officer received a letter from AEG disagreeing with the conclusion that its submittal was non-responsive (see Attachment 2 for a copy of the letter). This report will factually discuss the issues raised by AEG.

CAO File No. PAGE 0110-00800-0000 2

DISCUSSION

The RFP requested the following information under Section VI, Proposal Requirements, D) Narratives (page 20):

"FINANCIAL SUSTAINABILITY

Provide the following financial documents. Items one (1) through six (6) below must be audited financial statements in US GAAP.

1. Balance Sheets for prior three years. 2. Income Statements for the prior three years. 3. Statements of Cash Flows for the prior three years. 4. Statements of changes in stockholder's equity for the prior three years. 5. Notes to Financial Statements. 6. Corporate/partnership federal income tax returns for the last completed fiscal year. 7. Credit report (e.g., Dun & Bradstreet report). 8. Credit history letter(s) from financial institution(s). 9. Most recent quarterly financial statement.

In any event, should the City require additional evidence of financial stability other than what is submitted, the proposers will be expected to provide such acceptable evidence in order for their proposal to be considered responsive to this RFP."

AEG's proposal included the following response:

"Request for Proposal for the Los Angeles Convention Center requests a copy of our most recent audited financial statements and other financial information. Anschutz Entertainment Group, Inc. and AEG Facilities, LLC are privately held companies and do not release financial information. However, company management Is willing to meet with City representatives to review and discuss such financial information and our financial sustainability."

The RFP allowed for the proposers to ask clarifying questions. These were due on January 8 and then extended to January 23, 2013 in Addendum 1 after the Proposers' Conference on January 17, 2013. One question was asked and answered on "Financial Sustainability," as follows:

"37. Regarding the documents requested for firms "financial stability" (page 20}, please confirm that respondents to this RFP will be responsible for providing financial statements for the entity that will be executing an agreement with the City, and not those of a parent or affiliate

Answer: The City is requesting all relevant financial information for entities executing the agreement as well as parent and affiliates of that entity."

CAO File No. PAGE 0110-00800-0000 3

There was no further request for clarification of this response, although there were three other addenda posted to BAVN.

The GAO reviewed with the City Attorney AEG Facilities' offer to meet with City representatives to review and discuss their financial information. The City Attorney determined that such a meeting would amount to unequal treatment of the proposals and create an opportunity for the other firms to challenge the equity of the RFP process.

Since AEG Facilities did not submit any Information, the City Attorney also advised that we could not ask for "additional evidence" as no "evidence" was submitted. The City respects that some Information may be confidential so the RFP has specific guidelines on how proprietary and confidential information Is to be handled.

According to the City Attorney, although the Charter does allow the awarding authority to waive technical informalities such as lack of signature on a form, the omission of the Financial Sustainability requirement is not a technical Informality but rather goes to the issue of whether a company has the resources to manage the facility.

With regard to the City Ethics Commission (CEC) forms, the GAO's office made an administrative error in omitting a form from the RFP as advised by the City Attorney. It is the Intent of the GAO to correct this administrative error and make the finding to Council upon the advice of the City Attorney. Although the RFP on page 25 asked the proposers to submit City Ethics Commission (CEC) Form 55, staff attached CEC Form 50. Both firms submitted CEC Form 50. Both forms are required.

OPTIONS FOR COUNCIL

Based on the above discussion, the GAO is seeking direction on the request to reconsider the decision finding AEG Facilities' proposal non-responsive.

MAS:RPE:NRB:09130238

Attachments

ATTACHMENT 3

~WORLDWIDE ENTERTAINMENT AND ~CONVENTION VENUE MANAGEMENT

GREGG CAREN Son lor VIce President

P: 610.729.7922 F: 866.211.3483

Stratqqlc Buslnoss Dovo!opmont q~aren<:!Osmgworld.com

VIA EMAIL

June 9, 2013

Mr. Miguel Santana City Administrative Officer City of Los Angeles

SMC's Corporate otrkll Is located in sul>urbon Philadelphia: 300 Conshoho~ken State Ro~d Si<! 770 West ConsllQiloc~en, PA \9428 www.smqworld.com

Re: Appeal of the Recommendation of Award to AEG of the Agreement Pursuant to Request for Proposals No. 0110-00800-0000: Management and Operation of the Los Angeles Convention CenterJor the City.QfLos Angeles

Dear Mr. Santana:

Thank you for giving us an opportunity to compete for the management of the Los Angeles Convention Center. While we certainly appreciate the consideration that was given to our proposal, we nonetheless protest the proposed selection of the Anschutz Entertainment Group (AEG). Please consider this letter to initiate a formal process to reconsider any decision to award the above-referenced contract to AEG:

I. SMG was the Sole Responsive Bidder to RFP No. 0 II 0-00800-0000.

The City initially issued RFP No. 0110-00800-0000 on or about December 19,2012, with a deadline of February 8, 2013, which was later extended. By the response deadline, both SMG and AEG had submitted timely proposals. However, AEG's bid was substantively non-compliant, as AEG failed to submit necessary financial documents in accordance with the clearly detailed requirements of the RFP, and AEG was formally disqualified from the bidding process. Conseque!itly, SMG was the sole responsive bidder. The City's election nevertheless to permit AEG to submit a new proposal in response to RFP No. 0110-00800-0000, purporting to change its original bid and to correct the material deficiency in its initial response, improperly afforded special treatment and consideration to AEG, the nonresponsive bidder, and improperly stripped SMG of its status as sole responsive bidder. The ensuing decision to award the agreement to AEG (the nonresponsive bidder) is improper.

2. Only SMG has Appropriate and Sufficient Experience and Qualifications, and/or AEG's Experience and Qualifications are Insufficient to Justify the Award.

Part VI. D. requires proposers to have "five (5) years experience managing and operating convention or exhibition facilities in similar markets." AEG, however, failed to satisfy this threshold requirement. AEG does not manage or operate any "similar facility" in any "similar market." Indeed, AEG does not operate a single convention or exhibition facility in the United States, and operations in, e.g., Qatar, can hardly be considered experience in a similar market. Accordingly, AEG either fails to satisfy the Experience and Qualifications requirements and should have been immediately disqualified, or in the alternative, should have been awarded only zero or minimal points in this scoring category.

3. AEG Has a Disqualifying Conflict of Interest.

Compounding (or perhaps the cause of) its lack of experience and qualifications in convention center management, AEG has an inherent and disqualifying conflict of interest due to its interest in, and

control of, the JW Marriott/Ritz Carlton Hotels. Indeed, the City's Conflict oflnterest Policy (attached), promulgated for the Convention Center, specifically identifies the following as conflicts of interest (among others): "[having a]ny interest in or income from real property located within a one-mile radius of the Los Angeles Convention Center" and "[p]roviding hotel services." See Category I, paragraphs A. and B.Z.v. These conflict of interest rules specifically describe and regulate the precise conflict of interest that is posed by AEG's interest in surrounding real estate/hotels.

4. The Scoring System and Application of the Scoring System has Deprived the City of Best Value.

While we await fulfillment of our public records request, we question the manner in which pricing was incorporated into the scoring system and ultimately scored. First, it is well-understood in the industry that the true value of professional venue management services, in terms of return to the City of profits and overall success of the venue, is directly a function of the operator's experience and qualifications, and has nothing to do with a difference in pricing between, on the one hand, a highly-qualified convention center operator, like SMG, and on the other hand, an under-qualified operator with no other operations in the United States. For example, the success of the manager in attracting just one more city-wide convention would by far outweigh any dollar difference in fees in this case. Second, faced with what is understood to be minimal difference in pricing and given that the City reserved the right to negotiate a best and final offer, there should have been no or negligible difference in scoring on the issue of price, with experience and qualifications bringing far more value, and receiving far more weight, in the selection process. In short, the process failed to ensure value to the City by effectively allowing price to hump experience and other vital factors in this industry sector, and this failure may have deep-reaching implications at the LACC.

5. The Evaluation Panel Lacked Proper Expertise.

The Evaluation Panel was insufficient, as it failed to include representatives from the convention center, convention bureau and/or hotel management industry. Accordingly, the proposals were evaluated without sufficient industry expertise and consideration of the effects of the decision on the City, the Convention Center, and affected local businesses and industry groups.

As you know, SMG has made a formal request for documentation concerning AEG's bid and the bid review process, and has not yet had access to the requested documents (attached). Consequently, we ask that you stay the award of the Convention Center Management Contract until after we have received all of the requested inforn1ation, had an opportunity to supplement as appropriate the bases for protest as set forth in this letter, and our protest is thereafter fully resolved.

We thank you for your consideration of this appeal and look forward to your response.

~---Gregg Caren Senior Vice President Strategic Business Development

[DEPARTMENT]

CONFLICT OF INTEREST CODE Page I of2

Effective Date: ____ _

CITY OF LOS ANGELES CONFLICT OF INTEREST CODE

Pursuant to the provisions of California Government Code Sections 87300 et seq., the [DEPARTMENT] of the City of Los Angeles hereby adopts the following conflict of interest code.

City officials and employees may not make governmental decisions that affect their personal financial interests. To help City officials and employees avoid financial conflicts, each City agency adopts a conflict of interest code pursuant to the Political Reform Act of 1974 (Government Code sections 81000, et seq.). The Fair Political Practices Commission has adopted a regulation (2 California Code of Regulations Section 18730) that contains the terms of a standard conflict of interest code, can be incorporated by reference, and may be amended by the Fair Political Practices Commission to conform to amendments to the Political Reform Act after public notice and hearings. The conflict of interest code contains a "Schedule A", which identifies each designated position that is charged with making or participating in governmental decisions, and a "Schedule B", which identifies the economic interests the persons in those positions must disclose. The terms of 2 California Code of Regulations Section 18730, and any amendments to it duly adopted by the Fair Political Practices Commission, and the attached Schedules in which officials and employees are designated and disclosure categories are set forth are hereby incorporated by reference and constitute the conflict of interest code of the [DEPARTMENT].

Each City official (person holding, elected to, or appointed to a designated position) must submit statements of economic interests that identify the disclosable interests that he or she held during the reporting period with the agency who will make the statements available for public inspection and reproduction (Government Code Section 81008). Persons with questions concerning the applicability of this conflict of interest code or potential conflicts of interest should contact the Office of the City Attorney.

In addition to the requirements of this code, City officials are required to comply with the requirements of state and City Jaw.

[DEPARTMENT]

CONFLICT OF INTEREST CODE Page 2 of2

CERTIFICATION OF APPROVAL OF CODE

Effective Date: ____ _

I certify that this conflict of interest code was approved by the general manager, board, or commission of [DEPARTMENT] on-------------------'

(Date)

(Signature)

(Title)

(Date)

This conflict of interest code was adopted by order of the Council of the City of Los Angeles on and is effective as of that date.

(Date)

Frank T. Martinez, City Clerk

BY __________ ~~~--------Deputy City Clerk

LOS ANGELES CONVENTION CENTER CONFLICT OF INTEREST CODE

SCHEDULE "A"- DESIGNATED POSITIONS

CLASSIFICATION DISCLOSURE

CATEGORY

Commissioner

General Manager

Assistant General Manager

Senior Management Analyst I, II

Management Analyst I, II

Convention Center Building Superintendent I, II

Chief Clerk

Principal Clerk

Marketing Manager

Event Services Manager

Senior Marketing Representative I, II

Event Services Coordinator I, II, Ill

Public Relations Specialist I, II

Chief Custodian Supervisor I, II

Building Repairer Supervisor

Chief Building Operating Engineer

Director of Security Services

Chief Security Officer

Principal Security Officer

Revised - 0!//0103 Approved by City Council on July 9, 2003 Council File Number 03-0693

2

2

3

3

4

5

5

5

5

5

5

5

6

6

6

7

7

7


SCHEDULE "A"- DESIGNATED POSITIONS (contd.)

CLASSIFICATION DISCLOSURE

CATEGORY

Parking Manager 8

Communications Electrician Supervisor 9

Senior Communications Electrician 9

Electrician Supervisor 10

Senior Electrician 10

Principal Accountant I, II II

Departmental Chief Accountant I, II 11

Auditor 12

Senior Auditor 12

Senior Accountant I, II 12

Senior Plumber 13

Senior Systems Analyst I, II 14

Senior Personnel Analyst I 15

Trust Officer *

Consultant **

* The position listed above manages public investments and will file the Form 721A Statement of Economic Interests.

* * Whether any individual is a consultant shall be determined by the General Manager, who also determines which of the above categories is applicable to that consultant.

Revised- 01110/03 Approved by City Council on July 9, 2003 Council File Number 03-0693


SCHEDULE "B"- DISCLOSURE CATEGORIES

GENERAL PROVISION

A designated employee is required to disclose that he or she is a director, officer, partner, trustee, employee or holds any position of management in a business entity if he or she would be required to disclose income from that entity; Income includes loans and gifts.

CATEGORY!

A. Any interest in or income from real property located within a one-mile radius of the Los Angeles Convention Center.

B. Any investment in, income from, or business positions with any person or business entity which:

I. Manufactures, sells or leases any furniture, supplies, materials, machinery or equipment of the type utilized by the Los Angeles Convention Center Department;

2. Provides consulting and/or contractual services, including but not limited to the following:

a. crowd handling or control, ticket taking or ticket selling;

b. security;

c. electrical and/or electronics installation, maintenance and repair;

d. audio and visual communication installation, maintenance, and repair;

e. advertising and public relations;

f. business services;

g. customer services;

h. parking;

I. food concession, banquet or catering;

j. booth cleaning;

k. telecommunication installation;

Revised- 01110103 Approved by City Council on July 9, 2003 Council File Number 03-0693

Los Angeles Convention Center COl Code Schedule B - page 4

CATEGORY 1 (contd.)

I. show management, decorator, exhibitor and entertainment;

m. marketing and sales;

n. office supplies;

o. room and equipment rental;

p. computer;

q. accounting;

r. restaurant or food catering;

s. maintenance, landscaping, construction, and repairs;

t. personal services;

u. utility services and ·

v. hotel services.

3. Is, within the past twelve months was, or proposes to become a tenant, concessionaire or licensee of the Los Angeles Convention Center Department.

4. Is or within the past twelve months was a competitor of any person or business entity in any of the above.

5. Provides any convention-related services for which commissions, royalties, or fees are received (e.g. vending or service machine location agreements or for the right to audiotape or videotape any portion of the Department's program for commercial purposes).

C. Any investment in, income from, or business positions with any person or business entity which designs, lays-out, manufactures, prints, publishes, communicates, or processes artwork, signs, billboards, and audio visual equipment.

D. Any investment in, income from, or business positions with any person or business entity which services the trade/consumer show or convention field (e.g., decorators, chartered bus lines, drayage firms, equipment rentals, secretarial services, etc.).



CATEGORY 1 (contd.)

E. Any investment in, income from, or business positions with any person or business entity which is or has been, within the past twelve months an exhibitor in the Los Angeles Convention Center.

F. Any income from:

I. the Greater Los Angeles Convention and Visitors Bureau.

2. any person employed by the Greater Los Angeles Convention and Visitors Bureau.

G. Any investment in, income frmn, or business positions with any person, organization or business entity which is or has been within the past twelve months, a member of the Greater Los Angeles Convention and Visitors Bureau.

H. Any investment in, income from, or b1.1siness positions with any person or bu_siness entity which engages in land development, construction, or the acquisition or sale of real property.

I. Any investment in, income from, or business positions with any person or business entity which engages in building design, cleaning, interior and exterior maintenance, and other building services.

J. Any investment in, income from, or business positions with any person or business entity which is an architect, engineer, or a building construction contractor.

K. Any investment in, or income from a business entity which during the past twelve months, has proposes to, or currently issues health, accident, property or liability insurance to the Los Angeles Convention Center Department.

L. Any income from any individual who is or during the past twelve months was employed by the Los Angeles Convention Center as General Manager or applied for such employment.

CATEGORY2

A. Any interest in or real property located within a one-mile radius of the Los Angeles Convention Center.

B. Any investment in, income from, or business positions with any person or business entity which:

Revised --01110103 Approved by City Council on July 9, 2003

· Council File Number 03-0693

Los Angeles Convention Center CO! Code Schedule B - page 6

CATEGORY 2 (contd.)

1. Manufactures, sells or leases any furniture, supplies, materials, machinery or equipment of the type utilized by the Los Angeles Convention Center Department;

2. Provides consulting and/or contractual services, including but not limited to the following:

a. crowd handling or control, ticket taking or ticket selling;

b. security;

c. electrical and/or electronics installation, maintenance and repair;

d. audio and visual communication installation, maintenance, and repair;

e. advertising and public relations;

f. business services;

g. customer services;

h. parking;

I. food concession, banquet or catering;

j. booth cleaning;

k. telecommunication installation;

l. show management, decorator, exhibitor and entertainment;

m. marketing and sales;

n. office supplies;

o. room and equipment rental;

p. computer;

q. accounting;

r. restaurant or food catering;

Revised- OJ/10103 Approved by City Council on July 9, 2003 Council File Number 03-0693

Los Angeles Convention Center COl Code Schedule B -page 7

CATEGORY 2 (contd.)

s. maintenance, landscaping, construction, and repairs;

t. personal services; and

u. utility services.

3. Is, within the past twelve months was, or proposes to become a tenant, concessionaire or licensee of the Los Angeles Convention Center Department.

4. Is or within the past twelve months was a competitor of any person or business entity in any of the above.

5. Provides any convention-related services for which commissions, royalties, or fees are received (e.g. vending or service machine location agreements or for the right to audiotape or videotape any portion of the Department's program for commercial purposes).

C. Any investment in, income from, or business positions with any person or business entity which designs, lays-out, manufactures, prints, publishes, communicates, or processes artwork, signs, billboards, and audio visual equipment.

D. Any investment in, income from, or business positions with any person or business entity which services the trade/consumer show or convention field (e.g., decorators, chartered bus lines, drayage firms, equipment rentals, secretarial services, etc.).

E. Any investment in, income from, or business positions with any person or business entity which is or has been, within the past twelve months an exhibitor in the Los Angeles Convention Center.

F. Any income from:

I. the greater Los Angeles Convention and Visitors Bureau.

2. any person employed by the Greater Los Angeles Convention and Visitors Bureau.

G. Any investment in, income from, or business positions with any person, organization or business entity which is or has been within the past twelve months, a member of the Greater Los Angeles Convention and Visitors Bureau.

H. Any investment in, income from, or business positions with any person or business entity which engages in land development, construction, or the acquisition or sale of real property.

Revised -01110/03 Approved by City Council on July 9. 2003 Council File Number 03-0693


CATEGORY 2 (contd.)

I. Any investment in, income from, or business positions with any person or business entity which engages in building design, cleaning, interior and exterior maintenance, and other building services.

J. Any investment in, income from, or business positions with any person or business entity which is an architect, engineer, or a building construction contractor.

K. Any investment in, or income from a business entity which during the past twelve months, has proposes to, or currently issues health, accident, property or liability insurance to the Los Angeles Convention Center Department.

L. Any income from any individual who, during the past twelve months, was employed by or applied for employment by the Los Angeles Convention Center Department.

CATEGORY3

A. Any investment in, income from, or business positions with any person or business entity which may:

I. Contract to provide personnel services to the Los Angeles Convention Center;

2. Lease, sell or otherwise provide published employment tests;

3. Sell or otherwise provide psychological testing or consulting service;

4. Provide testing services or background investigation services;

5. Provide training services under contract or letter of agreement;

6. Provide facilities or services for the conduct of conferences, seminars or other training;

7. Provide an advertising service in the form of newspaper or magazine space or artistic layout and printing of recruitment materials.

B. Any income from any employee of the Los Angeles Convention Center or from a member of the immediate family of such employee.

C. Any interest in or income from real property located within a one-mile radius of the Los Angeles Convention Center.

Revised -0/1/0103 Approved by City Council on July 9, 2003 Council File Number 03-0693


CATEGORY4

A. Any interest in or income from real property located within a one-mile radius of the Los Angeles Convention Center.

B. Any investment in, income from, or business positions with any person or business entity which provides services utilized by or manufactures, sells, or leases any furniture, supplies, materials, machinery or equipment of the type leased, purchased or contracted by the Department.

C. Any income from any individual who, during the past twelve months, was employed by or applied for employment by the Los Angeles Convention Center Department.

D. Any investment in, income from, or business positions with any person or business entity which is or has been, within the past twelve months an exhibitor in the Los Angeles Convention Center.

E. Any investment in, income from, or business positions with any person or business entity which engages in building design, cleaning, interior and exterior maintenance, and other building services.

CATEGORY 5

A. Any investment in, income from, or business positions with any person or business entity which designs, lays-out, manufactures, prints, publishes, communicates, or processes artwork, signs, billboards, and audio/visual equipment.

B. Any investment in or income from any person or business entity which services the trade/consumer show or convention field, e.g., decorators, chartered bus lines, drayage firms, equipment rentals, secretarial services.

C. Any investment in, income from, or business positions with any person or business entity which is or has been a tenant or licensee of the Department within the past twelve months or provides any of the following services:

1. crowd handling or control, ticket taking or ticket selling;

2. security;

3. electrical and/or electronics installation, maintenance and repair;

4. audio and visual communication installation, maintenance, and repair;

Revised -OJ/10103 Approved by City Council on July 9, 2003 Council File Number 03-0693


CATEGORY 5 (contd.)

5. advertising and public relations;

6. business services;

7. customer services;

8. parking;

9. food concession, banquet or catering;

I 0. booth cleaning;

11. telecommunication installation;

12. show management, decorator, exhibitor and entertainment;

13. marketing and sales;

14. office supplies;

15. room and equipment rental;

16. computer;

17. accounting;

18. restaurant or food catering;

19. maintenance, landscaping, construction, and repairs;

20. personal services; and

21. utility services.

D. Any income from any individual, who during the past twelve months, was employed by or who applied for employment by the Department.

E. Any income from investment in any business entity or person which provides public or media relations services.

Revised-· OI/J0/03 Approved by City Council on July 9, 2003 Council File Number 03-0693


CATEGORY 5 (contd.)

F. Any income from:

I. The Greater Los Angeles Convention and Visitors Bureau.

2. Any person employed by the Greater Los Angeles Convention and Visitors Bureau.

CATEGORY6

A. Any investment in, income from, or business positions with any person or business entity which provides services utilized by or manufactures, sells, or leases any furniture, supplies, materials, machinery or equipment of the type leased, purchased, or contracted for by the Department.

B. Any income from any individual who, during the past twelve months, was employed by or who applied for employment by either the Administrative Services or Facility Services Divisions.

CATEGORY 7

A. Any investment in or income from any person or business entity which manufactures, sells, or provides any security item, communications equipment, or security services of a type utilized, specified, or contracted by the Department.

B. Any income from any individual who, during the past twelve months, was employed by or who applied for employment by the Security Division.

C. Any income from any business entity or person who provides training in security services.

CATEGORYS

A. Any investment in, income from, or business positions with any person or business entity which manufactures or sells any printing or sign equipment, parking lot related equipment, traffic counting equipment or vehicles of a type utilized or specified by the Department.

B. Any income from any individual who, during the past twelve months, was employed by or who applied for employment by the Parking Services Division.



CATEGORY9

A. Any investment in, income from, or business positions with any person or business entity which manufactures or sells any audio/visuals or communications equipment, electrical or electronic equipment and supplies of a type utilized by or specified by the City of Los Angeles.

B. Any income from any individual who, during the past twelve months was employed by or who applied for employment by the Communications section of the Facilities Division.

CATEGORY 10

A. Any investment in, income from, or business positions with any person or business entity which manufactures, sells, or rents any electrical supplies or equipment to the Department.

B. Any investment in, income from, or business positions with any person or business entity which is or has within the past twelve months an exhibitor, or decorator in the Los Angeles Convention Center or a tenant or licensee of the Department.

C. Any income from any individual who, during the past twelve months was employed by or applied for employment by the Electrical Services section of the Facilities Division.

CATEGORY 11

A. Any interest in or income from real property located within a one mile radius of the Los Angeles Convention Center.

B. Any investment in or income from any person or business entity which manufactures, sells, leases, or provides any supplies, equipment or services of the type leased, purchased, or contracted for by the Department.

C. Any income from:

I. The Greater Los Angeles Convention and Visitors Bureau.

2. Any person employed by the Greater Los Angeles Convention and Visitors Bureau.

Revised- OJI/0/03 Approved by City Council on July 9, 2003 Council File Number 03-0693


D. Any investment in or income from any person, organization or business entity which is or has been within the past twelve months, a member of the Greater Los Angeles Convention and Visitors Bureau.

CATEGORY 11 (contd.)

E. Any investment or income from any person or business entity which is or has been, within the past twelve months, as exhibitor in the Los Angeles Convention Center or a tenant of licensee of the Department.

F. Any investment in or income from any person or business entity which during the preceding completed calendar year provided or proposed to provide accounting services including investment counseling or financial auditing services for the Los Angeles Convention Center.

CATEGORY 12

A. Any investment in or income from any person or business entity which manufactures, sells, leases, or provides any supplies, equipment or services of the type leased, purchased, or contracted for by the Department.

B. Any investment in or income from any person, organization or business entity which is or has been within the past twelve months, a member of the Greater Los Angeles Convention and Visitors Bureau.

C. Any investment or income from any person or business entity which is or has been, within the past twelve months, as exhibitor in the Los Angeles Convention Center or a tenant of licensee of the Department.

CATEGORY 13

A. Any investment in or income from any person or business entity which manufactures, sells, or rents any plumbing supplies or equipment to the Department.

B. Any investment in or income from any person or business entity which is or has been within the past twelve months an exhibitor, or decorator in the Los Angeles Convention Center or a tenant or licensee of the Department.

Revised -01110103 Approved by City Council on July 9, 2003 Council File Number 03-0693

Los Angeles Convention Center COl Code Schedule B- page 14

CATEGORY 14

A. Any investment in, income from, or business positions with any person or business entity which manufactures, sells, maintains, or distributes computer systems, hardware and/or software application products or provides computer consulting services.

B. Any investment in, income from, or business positions with any person or business entity which markets computer-based training services or management services.

CATEGORY 15

Any income from any individual who is or during the past twelve months was employed by temporarily or permanently or applied for such employment by the Los Angeles · Convention Center Department.

Revised -01110103 Approved by City Council on July 9, 2003 Council File Number 03-0693

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