CONSIDERATION OF MOTION (WESSON - KREKORIAN - FUENTES - BLUMENFIELD - O'FARRELL - LABONGE - BUSCAINO) relative to the release of funds to the Joint Safety Institute (JSI) and Joint Training Institute (JTI) Trusts.

Recommendation for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

AUTHORIZE the Controller to release funds to the JSI and JTI Trusts (Trusts) pursuant to the Memoranda of Understanding (MOU) with the International Brotherhood of Electrical Workers only when the following final conditions are met:

1. Management trustees include the Los Angeles Department of Water and Power (DWP) General Manager and other DWP managers or supervisors appointed at her sole discretion.
   
   
2. The Trusts begin to meet regularly, adopt an annual budget, authorize timely payment of expenditures pursuant to the adopted budget.
   
   
3. The Trust Boards request the Controller and the City Administrative Officer (CAO) to conduct Fiscal and Performance Audits for fiscal years 2009-2010, 2010-2011, 2011-12, 2012-13 and 2013-14.
   
   
4. The Controller's and the CAO's auditors have unfettered access to all Trust documents necessary to conduct the Audits including, but not limited to bank statements.
   
   
5. Due to a pending District Attorney investigation, documents selected at the sole discretion of the Controller and the CAO will remain in the possession of the District Attorney.
   
   
6. The Controller and CAO auditors will be permitted to interview any current or former Trustees, staff, or officers to the Trusts or vendors. Interviews will take place at the JSI-JTI premises or at a location mutually agreed upon by the Management and Labor Trustees in consultation with the interviewees.
      
7. The Audits will be submitted at a public meeting of the DWP Board of Commissioners and the City Council.
   
   
8. Fiscal Year 2014-15 payments to the Trusts will be made to an escrow account established by the Trusts and will not be spent for a period of 120 days.
   
   
9. Funds will not be expended should the Controller or CAO Audits show any indication of illegality or if there is any violation of the Agreement, including but not limited to denying the auditors timely and unfettered access to all documents and interviews needed to conduct the Audits.
   
   
10. The Trusts commit to annual audits by an auditor mutually agreed upon by the Labor and Management Trustees.
    
    
11. The Trusts commit to annual reports to the DWP and the Council detailing the Trusts' finances, activities and efforts to achieve the goals and objectives set in the Trust Agreements.
    
    
12. All Trusts-related litigation, unfair practice claims or referrals to arbitration are withdrawn, with each side preserving its respective positions and arguments and bearing its own costs and expenses, except as provided in the Agreement.
    
    
13. A dispute resolution process be established to avoid further litigation and to facilitate problem-solving. 

Community Impact Statement:  None submitted.

(Council may recess to closed session pursuant to Government Code Section 54956.9(d)(1) in order to confer with legal counsel in relation to the cases entitled Brian D'Arcy et al. v. Ron Galperin, in his capacity as the Controller of the City of Los Angeles, Los Angeles Superior Court Case (LASC) No. BS146924 (This litigation relates to the authority to audit the JTI and JSI Trusts); and, City of Los Angeles v. Brian D'Arcy et al., LASC No. BC551103 (This litigation seeks a receivership for the JTI and JSI Trusts); and/or pursuant to Government Code Section 54956.9(d)(2)/(e)(2), significant exposure to litigation in relation to JTI and JSI Trusts, including payment of funds into the trusts.)

(Budget and Finance Committee waived consideration of the above matter)

ADOPTED

AMENDING MOTION (WESSON - LABONGE)

INSTRUCT the City Administrative Officer, in consultation with the City Attorney, to negotiate with all involved parties to resolve the litigation entitled Brian D'Arcy et al. v. Ron Galperin, in his capacity as the Controller of the City of Los Angeles, and City of Los Angeles v. Brian D'Arcy et al., under terms that would include allowing for the release of the Trust funds, contingent upon the conditions outlined in Motion (WESSON - KREKORIAN - FUENTES - BLUMENFIELD - O'FARRELL - LABONGE - BUSCAINO).

ATTEST:  Holly L. Wolcott, CITY CLERK

By

          Council Clerk                                                 PRESIDENT OF THE CITY COUNCIL