April 12, 2012

The Honorable Wendy Greuel
City Controller
City of Los Angeles
200 N. Main Street, Suite 300
Los Angeles, CA 90012

Dear Controller Greuel:

This letter provides comments on the draft report regarding the Coliseum Commission and its internal financial controls that your staff shared yesterday with John Sandbrook, interim General Manager, and Greg Hellmold, interim Director of Finance.

As you know, John and Greg worked diligently on a weekly basis with the City Controller team since last October, sharing with them the Commission’s findings and discoveries, and providing your staff with regular updates about the various corrective steps being implemented.

We regret very much that you declined our offer to join you in a public announcement of this report.  As you well know, many of your findings were based on information the Coliseum Commission has been assiduously collecting since July 2010.  Many of the statements in your report also refer to the corrective strategies that have been underway for many months under the aegis of the Commission’s ad hoc committee on audit and policy compliance, which was created and appointed by us.

The Coliseum Commission fully acknowledges that, in the past, insufficient oversight was applied to the former managers of the Coliseum. The Commission accepts its responsibility and embraces its role in instituting change and preserving the Coliseum for generations to come.

In July 2010, when the first allegations of impropriety were brought to our attention, the Coliseum initiated a full and complete investigation. That work was conducted and supervised by our in-house counsel, the Los Angeles City Attorney and the Los Angeles County Counsel.

Within months, the Commission forced the resignation of its senior managers and developed a thorough report that was turned over to the Los Angeles County District Attorney.  As you know, criminal charges have now been brought by the District Attorney, following the Coliseum Commission’s own civil complaint against former employees for fraud and other improper conduct.

While the Commission has long been aggressively pursuing those who violated the public trust, some are now laying claim to being the impetus for our efforts. In fact, as we are pleased to note is evident in your report, we have been readily providing information to the District Attorney so justice may follow its due course.

It is also important to note the failures that have existed in the Office of the Controller.

The Joint Powers Authority agreement that set forth the responsibilities of the Coliseum Commission in 1956 specifically states that the Office of the Controller of the City of Los Angeles has the responsibility to serve as the Controller of the Commission. Yet it was not until 2011 that the Controller’s office expressed any interest in its responsibilities in the financial management of the Coliseum and Sports Arena.

Had the City Controller’s office been as engaged the last six decades as it has been the last year, it is entirely possible that the illegal activity the Commission uncovered would never have occurred.

There is plenty of blame to go around. The failure to provide proper oversight is a shared failure. We look forward to your stated commitment to have your office engage fully in its responsibilities for the Coliseum and Sports Arena in the future.

And it is the future upon which we are now focused. There is no doubt the operations of the Coliseum and Sports Arena are much different and better than they were in the dozen years before we started to institute significant and important changes in February 2011. John Sandbrook and Greg Hellmold have been instrumental in working with the Commission to rebuild the recognition of our responsibilities as a public agency. You and the public can be assured that the errors of the past are, indeed, in the past.

We will detail in a separate announcement the specific actions that have already been taken or are in progress to address your more than four dozen recommendations. Your report correctly acknowledges many of these actions have been underway for the past 12 months, and such recognition is appreciated.

At the same time, your report also emphasizes the significant financial challenges that confront us at the Coliseum and Sports Arena. Those issues include having a sufficient number of events to cover operating costs, as well as adequate revenue to address long overdue capital improvements. As we discuss with the University of Southern California, our sole major tenant, the best way to address those challenges, we are sure we can count on your office to support us in that effort.

Sincerely,

David Israel                                                      Don Knabe
President                                                           Vice President

cc:        Members of the Coliseum Commission
Mr. John Sandbrook
Mr. Greg Hellmold

Click to download PDF of Coliseum Commission Response

The fight to end the horrors of child sex trafficking continues in Los Angeles County.  Earlier this year, I directed the County’s Probation department to develop a comprehensive plan to support the victims of this horrible crime.  They are developing some groundbreaking programs that I hope other communities across the nation can model.

In the coming months, you will also see a campaign from Metro, which I asked them to do to build community awareness in the very places where these young girls are most susceptible – train stations and bus stops.

While we do all we can to support the victims, we must also aggressively pursue the criminals who forcibly coerce and manipulate young girls into selling their bodies for their financial benefit.  I am one of the first legislators in California to come out and support the Californians Against Sexual Exploitation (CASE) Act, which would strengthen penalties against human traffickers and protect sexually exploited children.  It is my hope that other leaders across the state will join me.

If enacted into law, the CASE Act would be the toughest human trafficking law in the country.  It would increase prison terms for human traffickers, require convicted sex traffickers to register as sex offenders, mandate training for law enforcement officers, and require criminal fines from convicted human traffickers to pay for services to help victims.

Communities through the United States are facing the horrific reality of child sex trafficking occurring right here on our streets and in our neighborhoods.  It is not a problem ‘over there.’

I want Los Angeles County to be a national leader in fighting this heinous crime and protecting our vulnerable youth.  The CASE Act would be a major step forward in enacting tougher penalties and putting an end to the physical and mental abuse of these young girls.

As part of my role as Supervisor, I attend a lot of events in an effort to get out and see the 2 million people of Los Angeles County’s Fourth District.  One of my favorite events is the annual Amistad Gala benefiting Rancho Los Amigos hospital in Downey.

Last weekend, I again had the pleasure of serving as the evening’s emcee.  I am so pleased that this year’s “Mardi Gras for Miracles” raised $260,000, the most ever.

And no place is more deserving!  Miracles occur every day at Rancho and the patients are some of the most inspiring people I have ever met.  Perspective comes quickly into focus when one sees the incredible art that a patient is able to painstakingly produce with a brush in her mouth…or the incredible effort of an athlete who has spent countless hours of training and conditioning while in a wheelchair.

While Rancho may not be a hospital you have heard of, it is one of the most highly-regarded medical centers in Southern California.  Rancho was recently ranked 8^th out of 140 hospitals in L.A. & Orange County by U.S. News & World Report.  It was also named one of “America’s Best Hospitals” for the 22nd consecutive year.

The awards keep coming in.  We learned recently that Rancho has been nominated twice in the Los Angeles Business Journal’s Healthcare Leadership Awards.  Rancho has been recognized for “Top Hospital or Medical Center” and “Safety Net Provider.”  That is an amazing combination – being nominated for top hospital, while also being recognized for helping those who may not have the resources to pay to go to the best hospital.

Rancho helps thousands of inpatients recover from their catastrophic illnesses and injuries each year.  They also conduct more than 80,000 outpatient visits for long-term patients, more than any other rehab facility in the western U.S.  While their successes, research and standards of care earn them accolades, what impresses me most is the unique spirit of the patients, doctors and staff, all passionately focused around hope and giving people the highest quality-of-life.  I am honored and humbled anytime I get to be a part of it.

Fourteen years ago, an idea and vision was dreamed of by Jose G. Ramos.

In 1998, Ramos, a Vietnam veteran participated in a World T.E.A.M. Sports’ 16 day, 1,250 mile bicycle ride through Vietnam. His journey took him through the war-torn areas of Vietnam that he had fought in over a quarter of a century earlier.

The experience proved to be enlightening, oftentimes reflecting on his comrades who lost their lives in the jungles fighting for their country, and the thousands who returned home to the United States and were met with disrespect and disdain. Ramos began brainstorming ways to honor his fellow soldiers’ memories, and to ensure that no soldier returning home from combat would meet the same fate as Vietnam veterans.

Two years later, Ramos started a grassroots campaign to share his idea of a Welcome Home Vietnam Veterans Day. He decided to ride his bike from Whittier to Washington, D.C. and ask the White House Administration to proclaim March 30 as national Welcome Home Vietnam Veterans Day.

Support for Welcome Home Vietnam Veterans Day quickly grew and Whittier became the first city to proclaim a day to honor Vietnam Veterans. Soon, other local cities and jurisdictions followed suit. In 2008, I proclaimed the first Welcome Home Vietnam Veterans Day on behalf of the Los Angeles County Board of Supervisors.

Jose G. Ramos has dedicated his life to honoring the convictions and ideals of so many Vietnam veterans who returned home from the war broken and dispirited. His patience and perseverance finally paid off this week when President Obama officially proclaimed March 29, 2012 as Vietnam Veterans Day.

Vietnam Veterans Day is another day that we can join together as Americans to remember the sacrifices of those who have answered our nation’s call, and to thank those who continue to serve us faithfully everyday, with their hearts and their lives.

Recognition of our military should never be about whether we think a war or conflict is right or wrong. Our nation has asked our military to serve and we must thank those who protect our country, our constitution, our lives and most importantly, our freedom.

Thank you to our Vietnam veterans, like Jose G. Ramos, who fought to protect the very values of this great nation. We enjoy freedom and individual privileges because of your service and sacrifice.

In America there is far more uniting us than separating us. We must pay tribute to those who bravely answer the call to serve…with pride, respect and admiration.

At last week’s meeting, the Board granted permission for the Emergency Medical Services Agency (EMS) to enter into agreements with local fire departments to improve patient data collection.  The first pilot program will be with the Long Beach Fire Department, beginning later this year.

EMS coordinates services for the County, which includes 30 fire departments and four ambulance companies who respond to 911 calls.  Currently, we have about 600,000 EMS patient contacts with pre-hospital care providers and paramedics.  There is a patient care record generated for each patient by the fire department, by the base hospital providing orders to the paramedics, and by the trauma center.  Obviously, it is critical that this information is accurate, timely and shared.

Since its inception in Los Angeles County in the 1970s, there has been little change in how the patient care record is generated and transferred to the EMS Agency.  Data from some large departments can be over a year behind.  Federal funds are often available for data improvement within hospitals, but not for EMS.  Many still do not see the person in the pre-hospital environment as a patient.

Funding for this pilot program is coming through a Homeland Security grant to recognize the importance of data collection and submission in the event of a crisis.  I am pleased to see this pilot program get underway and hope that it will be expanded to other fire departments.  Data is absolutely critical for us to make policy decisions and to evaluate our system and care for those most in need.

In the spirit of “you can’t make this up,” I learned recently about a federal regulation that guides the operations of the Department of Public Social Services (DPSS).  This is the County department which manages all of the General Relief payments and food stamps. Participants receive updates on their cases and program announcements on a regular basis.

Under the federal law, we must send paper mail to all program participants, many of whom list one of our district offices as their mailing address because they are homeless.

Yep, you got it.

We are sending mail to ourselves! In fact, more than a million pieces of mail are issued from any of our 13 offices, and they are delivered right back to us.  On the rare occasion that participants come to pick up their mail, staff must search through thousands of items, resulting in long lines and frankly, a waste of staff time.

This week, I have put forth a motion for consideration by the Board to fix this. The first step will be overcoming all federal and state regulations requiring paper mail to those that list our offices as their mailing address. Second step will be developing an electronic alternative that allows program participants to access the information they need, either through a place where the internet is available (public library, for example) or a DPSS office, where they can request print-outs of everything we “mail” to them.

While the County is facing many challenges that we cannot fix because of the economy and the impacts of the federal and state budgets, as the great John Wooden once said, “Do not let what you cannot do interfere with what you can do.”

Today, the Los Angeles County Board of Supervisors unanimously voted to appoint Philip Browning to lead the County’s Department of Children and Family Services.

During his tenure in Los Angeles County, Philip has inspired a great deal of confidence with his leadership at Child Support Services, Public Social Services and as the interim director of Children and Family Services.  He has made good in-roads in addressing the challenges the department has faced and I believe he will be an effective leader in finding long-term solutions to the problems we face.

We need to “reboot” our approach to child welfare.  On any given day, we serve over 35,000 children.  From the moment they enter our system from a crisis situation, to the monitoring of their progress with their family or in foster care, we need consistent rules and policies across our 17 regional offices, with clear lines of accountability.

Our number one priority must be the children – they must have the rights, the focus, the attention, and the support they need to grow up safely with the potential for a great future.  I’m confident that Philip shares that goal and will guide the department forward in doing everything possible to protect the children of Los Angeles County.

I’ve heard the outcry over the prohibition against footballs and Frisbees at Los Angeles County beaches as another example of government run amok. In fact, the intent of the ordinance was to increase recreational activities -something which has been lost in the media coverage.

There was a prohibition against footballs and Frisbees in the old ordinance from the 1970s.  The updated ordinance does not ban footballs, soccer balls or Frisbees on beaches.  Rather, it provides reasonable safety measures that lifeguards may impose on a crowded beach day, when wayward footballs or Frisbees could cause injuries to bystanders. The media reports also misrepresent violation fees.

As there have been so many inaccurate reports and confusion, I am asking our Director of Beaches and Harbors to come to our Board meeting on Tuesday to explain and clarify the ordinance. My goal is to ensure the safety of the 50-70 million beach-goers who visit the Los Angeles County beaches each year. I hear your concerns and will raise them on Tuesday.

Read the Department of Beaches and Harbors’ Statement.

The United States Army Corps of Engineers has increased its funding by $2.4 million, bringing to $7.7 million the federal allocation to support a major dredging project in Marina del Rey.  Through this project, the Army Corps of Engineers, the County’s Department of Beaches and Harbors, and the Port of Long Beach are collaborating to meet the urgent safety and economic development needs of two local communities.

I’ve been working on this project in Marina del Rey for a long time, coordinating with our beach cities, the Port of Long Beach and federal agencies to find a solution that addresses the safety needs of our boaters and first-responders.  I want to thank former Congresswoman Jane Harman and Congresswoman Janice Hahn for their support and the Army Corps of Engineers for their cooperation in understanding how important this project is to Los Angeles County.

This innovative agreement between federal and local agencies is a terrific example of government at all levels working together to solve regional issues.  This partnership was a once in a lifetime opportunity and the timing is perfect – Marina del Rey needs to get rid of sediment and Long Beach needs sediment.  This additional funding will also allow us to dredge out more sediment, increasing navigation capacity for our first responders.

All levels of government are facing tight budgets and I appreciate the great partnership that local and federal officials have shown in meeting a critical regional need. It’s been a long time coming and I’m thrilled that we have found an environmentally sound solution that saves millions of dollars, while protecting lives.

Today we built on the proven success of my 10,000 Jobs Program by expanding subsidized employment in Los Angeles County.  Over the last few years, we have put 11,000 people to work, one of the best uses of stimulus funding in the nation.  Based on our proven record, early last year Governor Brown signed a bill expanding eligibility for subsidized employment programs for people on CalWORKS.

Currently we have 470 Welfare-to-Work participants enrolled in subsidized employment through the South Bay Work Investment Board. Through a motion I made today, we will increase that number by 420 more participants who will now be given the opportunity to get back to work and convert welfare checks into paychecks.