Convention Board OKs Reforms

Stung by criticism of wasteful spending, the Los Angeles Convention and Visitors Bureau board approved rules Wednesday governing travel and bonuses, and agreed to expand the board to include a critic of past practices.

The action came on the same day that the city Convention Center Commission voted to meet with City Council members to express concerns about the large number of convention cancellations and the low number of bookings by the bureau.

“It’s no longer just a minor concern,” said Commission Vice President Lesa Slaughter. “It’s now reached crisis proportions.”

Commission President Peter Zen said the convention center needs 38 conventions each year to break even, but the bureau had booked fewer than half that number for next year as of its last report.

The commission discussed the possibility of asking the city to cancel its $18-million contract with the bureau to book the center and promote tourism, but took no action.

The bureau’s board of directors voted Wednesday to expand the panel from 15 to 18 members and appointed Slaughter to fill one of the new seats.

Slaughter, who served as chief of staff to former Mayor Richard Riordan, has been a vocal critic of the bureau’s spending practices, as detailed in stories in The Times.

In particular, she has expressed outrage about awarding bonuses to salespeople who secure letters of intent from groups saying they may hold a convention in Los Angeles. At least 20 conventions used to justify about $225,000 in bonuses in the last four years eventually canceled.

The board voted Wednesday to require conventions to sign a license, or contract, with the city Convention Center before the event can be counted toward bonuses. The nonbinding letters of intent are no longer enough to consider a convention booked for purposes of awarding bonuses, officials said.

The new policy is similar to the standard used in other cities with convention centers, including Long Beach and Phoenix.

The board also decided that convention salespeople will work on a straight salary, with no bonuses, unless a specific bonus proposal is approved by a five-member oversight panel, said board member Javier Cano.

Board members said the change will make sure any bonuses are justified.

“The board has taken informed and assertive action,” said Board Chairman Alan Rothenberg.

The panel also approved a draft of a 20-page travel policy and agreed to circulate it to travel industry experts before giving it final approval.

The Times recently reported that the bureau has spent $3 million annually on travel, food and entertainment in its quest to promote the city in the United States and abroad.

During one trade mission to London, the bureau spent $10,000 for a dinner at Kensington Palace and $84,000 to entertain tour operators at the Wimbledon tennis championships. One delegate stayed five nights in an $854 per-night suite at the Four Seasons hotel.

The bureau refused Wednesday to release the new travel rules, but said they prohibit the bureau from paying the travel expenses of spouses and forbid the use of city funds to pay for hotel suites.

The bill for the Four Seasons was paid for by bureau membership dues, not city funds. The Wimbledon event was paid for from city funds.

“In my view [the policy] is as comprehensive as you’ll find anywhere,” said board member William Kramer.

Slaughter welcomed the appointment to the board and said the new restrictions on bonuses are a positive action.