Report 2016-106 Recommendation 6 Responses
Report 2016-106: Los Angeles County: Weak Oversight of Its Lease With the Los Angeles County Fair Association Has Likely Cost Millions of Dollars in Revenue (Release Date: November 2016)
Recommendation #6 To: Los Angeles County
To protect its interests and maximize its future revenue, the county should strongly consider ensuring that any potential amendment to the lease includes terms that define the circumstances or dates that require a renegotiation of the lease and the rent calculation formula.
Annual Follow-Up Agency Response From November 2021
County and Fair Association have executed Amendment No. 6 to the Lease that addresses this issue. Will send a copy of the amendment to the e-mail address set forth below.
- Completion Date: September 2021
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
The amendment includes circumstances that require renegotiation of the Lease and the rent calculation formula.
Annual Follow-Up Agency Response From January 2020
County's proposal regarding a revised rent structure is being evaluated by Association. Amendment should be completed by the end of calendar year 2020.
- Estimated Completion Date: End of calendar year 2020
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Annual Follow-Up Agency Response From November 2018
County has retained an economic consulting company which is advising the County on the appropriate mechanism for requiring renegotiation of the rent calculation formula.
- Estimated Completion Date: TBD
California State Auditor's Assessment of Annual Follow-Up Status: Pending
1-Year Agency Response
The County continues to have dialogue with LACFA on the lease amendment. The County's objective is to protect its interests and maximize its future revenue. Accordingly, County will include in its negotiations a proposal to include events and/or dates that will trigger changes to the lease and/or the rent calculation formula.
ANTICIPATED COMPLETION DATE: TBD- the County's ability to successfully implement this recommendation is dependent on LACFA cooperation.
- Estimated Completion Date: TBD
- Response Date: November 2017
California State Auditor's Assessment of 1-Year Status: Pending
6-Month Agency Response
The County has begun dialogue with the new leadership at the LACFA in an effort to reach agreement on the direction that this potential amendment will take. The County's objective is to protect its interests and maximize its future revenue. Accordingly, during negotiations for a lease amendment County will seek more clarity on what events and/or dates will trigger changes to the lease and/or the rent calculation formula.
Anticipated Completion Date: TDB- the County's ability to successfully implement this recommendation is dependent on LACFA cooperation.
- Estimated Completion Date: TBD
- Response Date: May 2017
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
The County acknowledges and agrees with this recommendation and will consider it when preparing language to use to negotiate a potential amendment to the current ground lease and operating agreement. The County's ability to successfully implement this recommendation is dependent on LACFA cooperation.
Anticipated Completion Date for new draft language: March 30, 2017; Completion date for reaching agreement with the Fair Association remains TBD.
- Estimated Completion Date: TBD
- Response Date: January 2017
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2016-106
Agency responses received are posted verbatim.