Michael Leslie Productions, Inc. v. City of Los Angeles

207 Cal. App. 4th 1011, 144 Cal. Rptr. 3d 22, 2012 WL 2877708, 2012 Cal. App. LEXIS 811
CourtCalifornia Court of Appeal
DecidedJune 21, 2012
DocketNo. B233052
StatusPublished
Cited by9 cases

This text of 207 Cal. App. 4th 1011 (Michael Leslie Productions, Inc. v. City of Los Angeles) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michael Leslie Productions, Inc. v. City of Los Angeles, 207 Cal. App. 4th 1011, 144 Cal. Rptr. 3d 22, 2012 WL 2877708, 2012 Cal. App. LEXIS 811 (Cal. Ct. App. 2012).

Opinion

Opinion

GRIMES, J.

Plaintiff and appellant Michael Leslie Productions, Inc., doing business as Ready Golf Centers (Ready Golf), appeals from the judgment of dismissal entered by the trial court following the sustaining of die demurrer of defendant and respondent City of Los Angeles (City) to Ready Golf’s original complaint without leave to amend. Ready Golf contends it stated a valid claim entitling it to relief by writ of mandate, and that even if there were defects in its original pleading, the trial court abused its discretion in refusing Ready Golf at least one opportunity to amend. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

The City operates seven public golf courses through its department of recreation and parks (Department): two courses at the Sepulveda Golf Complex, two courses at Griffith Park, the Hansen Dam golf course, the Rancho Park golf course, and the Woodley Lakes golf course. Almost 500 golf carts, on average, are in operation at the City’s golf courses on any given day. In 2007, the golf cart concession at the City’s golf courses was handled by a private entity, J.H. Kishi Company (Kishi). Kishi had operated the concession for a number of years under a written contract with the City, but that contract expired in 2003, and Kishi continued to operate the concession thereafter on a month-to-month basis.

[1016]*1016In July 2007, the Department issued a request for proposal, inviting private entities to submit bids to contract with the City for the golf cart concession at all seven golf courses. The request for proposal included notice to proposed bidders that the Department would also conduct an analysis in accordance with section 1022 of the City Charter to determine whether it was more economical or feasible for the City to “self-operate” the golf cart concession. The results of the analysis and plan for self-operation would be evaluated with the proposed bids received from private entities.

The request for proposal also gave notice that the board of recreation and park commissioners (Board) was the “contract awarding authority” for the Department and would, at a public meeting, select the bidder to be awarded the contract. The “selected concessionaire” would then complete final paperwork and execute the contract directly with the City. Proposed bidders were also given notice that section 10.5 of the City Administrative Code required the proposed contract to be approved by the City Council because the term of the proposed concession exceeded three years. And, proposed bidders were further advised that under section 371 of the City Charter, the City reserved the right to reject any and all bids or proposals and waive any informalities in any bid received if to do so was to the advantage of the City.

In response to the request for proposal, the Department received five bids. Two of those bids were rejected during the initial review for noncompliance with the required bid documentation set forth in the request for proposal. The bids from Ready Golf, Kishi and a third entity, Angeles Management Services, proceeded to the next stage of the evaluation process.

To assist in administering the request for proposal, the Department hired Economic Research Associates, an independent consultant. Economic Research Associates selected a five-person panel composed of individuals from other municipalities experienced in public golf course management. The independent panel interviewed the three proposed bidders and evaluated their respective bids using scoring criteria for six different categories, including (1) ability to finance, (2) qualifications and background, (3) description of proposed golf carts, cart maintenance and cart replacement, (4) business plan, (5) proposed rental payment to City, and (6) capital improvements. Each bidder was evaluated and ranked in each category, with a perfect score being 100. Ready Golf received the highest overall score of 97 points. Kishi was second with a score of 88, and Angeles Management Services was ranked third with a score of 83.2.

The panel unanimously recommended that Ready Golf be awarded the contract. Economic Research Associates concurred with the panel’s assessment and forwarded the recommendation to the Department. In May 2008, [1017]*1017John Mukri, general manager of the Department, prepared a report for consideration by the Board, summarizing the evaluation process and recommending that Ready Golf be awarded the contract. Mr. Mukri also reported that the Department’s analysis under section 1022 of the City Charter showed it was more economical to award the contract to Ready Golf than for the City to attempt to self-operate the golf cart concession.

At its June 4, 2008 meeting, the Board voted unanimously to award the contract to Ready Golf. The two losing bidders, Kishi and Angeles Management Services, asked the Board to reconsider its decision. At another lengthy public meeting held July 23, 2008, the Board once again voted unanimously to award the contract to Ready Golf.

The proposed contract with Ready Golf contained a provision that the concession would last for 10 years, with one five-year renewal option. Section 10.5 of the City Administrative Code required City Council approval of the proposed contract because it was for a term of more than three years. Pursuant to the mayor’s executive directive No. 3, the contract also had to be reviewed by the mayor’s office.

Upon receipt of the proposed contract, the mayor’s office ordered a report to be prepared by the office of the city administrative officer (CAO). Following its review of the proposed contract with Ready Golf, the CAO issued a report dated October 10, 2008, recommending the City Council approve and authorize the Board to execute the contract, subject to approval as to form by the city attorney in accordance with section 370 of the City Charter.

The CAO report was not released publicly, nor was the proposed contract forwarded to the City Council for a vote. Instead, the mayor’s office asked the CAO to review the proposed contract again. In December 2008, after reevaluating the Ready Golf contract, the CAO released its second report, once again recommending that the City Council authorize and approve execution of the proposed contract. The report also concurred in the Department’s assessment that it would be more economical for the City to contract with Ready Golf than to self-operate the golf cart concession.

Because Ready Golf had not received notice of the scheduling of a vote on its contract, Ready Golf made numerous inquiries of the mayor’s office as to the status of the proposed contract. Ready Golf was told by a representative of the mayor’s office that the CAO “got it wrong,” but despite several requests, Ready Golf was unable to obtain release of the CAO reports. After continued inquiries by Ready Golf, the mayor’s office finally released the CAO reports to the City Clerk in July 2009, and the proposed contract was [1018]*1018forwarded to the Arts, Parks, Health and Aging Committee of the City Council for review in preparation for a vote by the full council.

The committee, headed by Councilmember Tom LaBonge, voted two to zero to approve the proposed contract with Ready Golf. The contract was then placed on the City Council’s agenda for a vote on July 22, 2009. During the hearing, a vote on the contract was put on hold on the motion of Councilmember Jan Perry on the grounds that Michael Yamaki, a lawyer for Kishi, was not present. Mr.

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207 Cal. App. 4th 1011, 144 Cal. Rptr. 3d 22, 2012 WL 2877708, 2012 Cal. App. LEXIS 811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-leslie-productions-inc-v-city-of-los-angeles-calctapp-2012.