Collections in Los Angeles are a mess: City departments are collecting just over half of what they bill; no real centralized billing and collection process yet exists in the City; and a majority of L.A.’s $541 million in non-tax receivables are well past due. L.A.’s Controller and others have been sounding warning bells about this for years, and no city and no business can afford to operate this way. 

The City’s Commission on Revenue Efficiency (CORE) has been given the task of developing a plan to fix the problems with collections. As Chair of CORE, I had the recent opportunity to present a review of our work to the Council’s Budget & Finance Committee, and I am proud to report that our Commission is finalizing a Blueprint for Reform of City Collections, which we expect to release in the coming weeks. Our 7-member Commission was created by the City Council earlier this year, with experts appointed by the Mayor, Controller, Council President, and chairs of the Council’s committees on Audits & Governmental Efficiency and Budget & Finance. CORE’s Commissioners have met near weekly since late March to study and develop a comprehensive plan for reform.

The Blueprint includes analysis of L.A.’s current state of revenue and collections — and detailed recommendations for improving accountability of City departments, performance incentives, centralization, standardization, technology, collection agencies and strategies for getting those owing money to the City to pay.

By Mark Madler, San Fernando Valley Business Journal, 7-1-2010

The City of Los Angeles failed to collect nearly $300 million owed to it in 2008-09, according to an audit from the City Controller’s office released July 1.

The city has not improved its collection rate on fees and fines since the last audit in 2007, which was unacceptable, said Controller Wendy Greuel.

City departments surveyed by the controller’s office showed billings totaling $553.4 million for fiscal year 2008-09 but only $293 million had been collected. Cited as having among the lowest collection rates were parking citations and billings for ambulance transportation. . .

In February, the City Council formed the Commission on Revenue Enhancement to look into ways to improve collections on money owed and find new sources to fill the city’s coffers. The commission is expected to release its recommendations in the next few weeks.

The commission will recommend general and specific ways to change the collections process, said Chairman Ron Galperin.

“We knew what the controller was gong to be finding; it is the same we are finding in the testimony we are hearing before us,” Galperin said. “It is more vital than ever to have the changes made.”

Read more.

Southern California is no stranger to hot, dry weather, and the wildfires that inevitably result are all too familiar. As reported by the L.A. Times and NBC this week, I joined my fellow L.A. County Quality and Productivity Commissioners in presenting our just-completed study of early fire detection technologies to the L.A. County Board of Supervisors. Read the full report here. We identified and made recommendations for greater use of satellites, infrared cameras, and stationary sensors to detect fires before they get out of control.

STUDY: Committee Has Fast Start.

By Mark Madler, San Fernando Valley Business Journal, 5-10-2010

Six months.

That is the amount of time the Commission on Revenue Efficiency has to gather its facts and prepare recommendations on how the city can improve collections on money owed and find new sources to fill the city’s coffers.

The seven-member ad hoc commission has gotten off to a quick start, meeting once a week at City Hall to hear presentations by city departments…

Galperin, a journalist before turning to law, serves as the commission’s chairman. His goal is not just to have the city quickly collect what it can on debt but also take a wider view to address the bureaucratic culture that led the city to be in the financial position it finds itself in.

To bring in more money, Galperin would like the city to be more entrepreneurial and make available goods and services to municipal and county governments.

For instance, there are city-owned asphalt plants not operating at full capacity that could provide asphalt to other cities, Galperin said. Proprietary software developed by the city could be licensed out as well, he added.

Read more.

FUNDS: With city in crisis mode, move to collect debts gets serious.

By Mark Madler, San Fernando Valley Business Journal, 5-10-2010

The City of Los Angeles loses out on millions of dollars in uncollected fees, fines, and permits every year due to inconsistent policies, multiple billing systems, antiquated technology, and staff shortages.

Reports and studies over the past few years have all recommended the same solution – centralizing the collections process – but it has been slow to be implemented into the city’s bureaucracy…

“The imperative to reform finances has never been greater,” said Ron Galperin, chairman of an ad hoc commission looking at the collection process. “When economic times were better very few people felt the same fire beneath them to change.”

The Commission on Revenue Efficiency was formed this spring and meets weekly in a fact gathering stage to prepare recommendations on the collections process and new ways to generate revenues.

Various city departments have appeared before the seven-member commission to describe billing and collection procedures. The department representatives have been forthcoming in their deficiencies and are open to making changes, commission members said.

Read more.

Hundreds of Other Items Purchased More Than a Year Ago, Sitting Unused
Press Release, L.A. City Controller Wendy Greuel, 5-3-2010

City Controller Wendy Greuel released an audit today showing that various City departments could not locate hundreds of items purchased with taxpayer funds, and that hundreds of other items had been sitting unopened or unused for up to 7 years.

“With the City facing such a large budget deficit, it’s essential that any equipment that we are able to purchase is easily located if needed and utilized immediately. It’s critical that keep tight controls on the City’s scarce resources,” said City Controller Greuel. “Unfortunately we found in this case that no one was minding the store…”

Click here to read more, or here to view Controller Greuel’s Audit of Fixed Assets

The news about L.A.’s budget woes grows worse daily. This week, the City Controller predicted that by May 5 the City will be out of money to pay its bills. In response, the Mayor has ordered the creation of a plan to shut down all non-essential services for two days each week, beginning April 12.
-

The City needs cash – and needs it now. L.A.’s newly created Ad Hoc Commission on Revenue Efficiency (CORE) has been tasked to develop immediate recommendations to improve collections, reduce costs, and identify new sources of revenue. I’m honored to be serving as Chair of the seven-member commission, along with our Vice Chair, and former L.A. City Councilmember, Cindy Miscikowski. At our three meetings to-date, we have begun detailed inquiries with the Office of Finance, the City Treasurer, department managers, and the offices of the Chief Legislative Analyst and the City Administrative Officer. We have also met and discussed ways to immediately generate more money and spend less of it with the City Controller, Council President and L.A. City Council Chairs of Audits & Governmental Efficiency and of Budget & Finance. For the next four weeks, we will be meeting Thursdays at 1:30 p.m. in Room 1060 of L.A. City Hall. We welcome the input of all interested persons – at our meetings, or by e-mail.
-

The City will soon be launching a website for CORE, which will include information about meetings, reports, and ongoing recommendations of the Commission. Meanwhile, click HERE to visit the Budget page on my website to read or download information and reports about the L.A. budget and the work of the Commission.

City Watch 3-23-2010
By Stephen Box

“A Seat at the Table!” Long the battle cry of neighborhood council Mayor’s Budget Advocates who have fought hard for the right to participate in the City’s process … balancing the city’s budget while prioritizing the delivery of city services and engaging the public in the journey. Along came the Mayor’s Budget Day (Mar 13) and approximately 70 NC reps spent a Saturday morning with Deputy Mayor Ceja and CAO Santana, reviewing the Mayor’s Budget survey results and the Mayor’s Budget…

Our meeting with the Mayor went well. Co-chairs Dr. Dan Wiseman and Doug Epperhart guided the highly motivated team with great diplomacy, Ron Galperin set the tone with an optimistic call for innovation in governance and Scott Bytof closed with a simple commitment of partnership. Click here to read more.

Mazon Hunger Fighters 2-25-2010
By Eric Schockman

I was pleased last week to be invited on a panel of anti-hunger experts to address a gathering of the Westside Democratic Club. In the picture (from left to right) are panel moderator and attorney-activist, Ron Galperin; me;  Frank Tamborello from Hunger Action LA; Matt Sharp from California Food Policy Advocates; and Michael Flood, head of the LA Regional Food Bank.

We covered a wide spread of topics ranging from why California (and a few other states) still finger-image clients collecting their food stamp (SNAP) entitlements; to the role that community based groups can play in fighting hunger from the ground up.
Click here to read more.

Daily News 2-10-2010
By Rick Orlov, Staff Writer

With Los Angeles fighting a massive budget deficit, City Controller Wendy Greuel called on City Council members Wednesday to give up $25million in special funds used for pet projects in their districts…

The council created a special ad hoc Commission on Revenue Efficiency, composed of debt-collection experts who will advise the city on how much outstanding debt it has and how to collect it.

Ron Galperin, an attorney and former City Council candidate who serves on the city’s Productivity Commission, will chair the panel that will be in effect for six months.
Click here to read more

Los Angeles Business Journal 2-8-2010
Newsmakers

Ron Galperin has been named to the city of L.A.’s Quality and Productivity Commission. Galperin is founder of the Law Offices of Ron S. Galperin in Beverly Hills.