ADVOCACY—Art of Taking Sides

Fred Gaines Title: Chairman-elect, VICA, and partner, Gaines and Stacey Age: 42 Education: B.A. in economics and political science, UCLA; M.P.P. in public policy, John F. Kennedy School of Government, Harvard University; J.D., UC Berkeley Boalt Hall School of Law Career turning point: Opening own law practice in 1997 Most admired person: Father, Erwin Gaines Personal: Married, three daughters Incoming VICA president Fred Gaines looks forward to advocating for the organization’s broad constituency As companies and organizations shift into their traditional planning season for the upcoming year, the Valley Industry and Commerce Association does so as well. However, for the 50-year-old business advocacy group, that process comes with a change of leadership. Current VICA Chairman Cathy Maguire’s two-year term ends on Dec. 31 when the gavel will be passed to Chairman-elect Fred Gaines. Gaines, a Woodland Hills attorney who specializes in land use issues, spoke to Business Journal editor Michael Hart recently about VICA’s goals for the upcoming year, the challenges the organization faces in the near future and his reasons for taking such an active voluntary role. Question: What does VICA do that is different from the Economic Alliance of the San Fernando Valley or the handful of chambers of commerce in the Valley? Answer: VICA has always been intended to be a broad-based business advocacy group. That’s what we’re there to do, and really on the major issues of the day. VICA was formed for the purpose of bringing infrastructure to the Valley. There was a time when there were a small number of larger businesses who wanted to make sure the Valley was going to have water and power and the public facilities that it needed. VICA, frankly, is almost still true to that 50-plus years later in terms of really looking at those bigger issues: transportation, taxes, workers compensation. The chambers of commerce, they’re there typically to help create business exchange amongst their various members, to advocate to a certain extent but more on local issues. If you need, for example, a stoplight at an intersection, the Reseda Chamber of Commerce can help you. But for the Reseda Chamber of Commerce to put its arms around a tax issue or the 405/101 interchange, that’s more difficult. The Economic Alliance grew out of other things that we wanted to do that were not advocacy-related: Valley-wide promotion, Valley of the Stars campaign, research. Q: What do you say to the criticism by some that VICA represents larger mainstream companies but to an extent ignores the Valley’s small business community? A: I am not unaware of those criticisms. We could always do better in terms of advocating on behalf of Valley business. We have about 350 members representing 250,000 employees throughout the Valley. There are always more members we could have, more participation we could have. And one of our goals as an organization is to broaden our base as an organization, to broaden our membership. We have to do a better job of including minorities and small businesses in our membership. Anybody can join, but we have to do a better job of being representative of all the businesses in the Valley. I realize VICA is not completely reflective of all the economic diversity of the San Fernando Valley, not because it’s a closed organization, but because it takes time for these things to develop. I’m hopeful we can see improvements in that area. Q: What role do you expect VICA to play in the debate over secession? A: If, in fact, it goes on the ballot in November, I think our board and our membership are going to want to look at it and see what the effects on business are and whether or not VICA should have a position. We have already started to put together a schedule of activities, panel discussions and meetings where we try to look at what would be the effect on business, leading up to a vote of the membership. While it’s not specifically a business issue, there are certainly aspects of it that affect business and that’s what we want to focus on: How would it affect business? Q: What do you believe is the sentiment of VICA membership on the secession issue? A: I think it’s mixed. Most businesses tend to be a little more conservative about major changes. They want to make sure the water’s going to flow and the power’s going to flow and services are going to be there. So, there’s some hesitancy to create a big change. On the other hand, the feelings people have in the Valley about reorganization are often very deep-seated. Many people feel they have not been properly represented, have not gotten the level of services they deserve, so I think there are mixed feelings. Q: When will that vote take place? A: I think it will occur in the first half of the year, leading up to some kind of position shortly thereafter. Q: One of VICA’s major goals this year was business tax reform. What more is there to accomplish on that issue? A: This last year, (VICA member) Mel Kohn was one of the co-chairs of the city-wide tax commission. They sort of did a first round of changes in terms of simplifying the process, streamlining the process with this tax amnesty program. Our next goal is to now go after the tax and see if it can be eliminated or severely reduced. Q: What about the move to get more state funding for Valley transportation projects? A: We want to keep our pressure on the infrastructure issues. We have made some progress in the last few years in getting the Governor to focus the state and regional authorities on transportation issues in the San Fernando Valley the 405/101 interchange, mass transit options but nothing’s been completed yet. We need to continue to be diligent in moving the ball forward and keeping these projects on schedule and on top of the priority list. Q: Do you expect the state government’s recent budget problems to have an impact on that goal? A: I’m very concerned. We are going to rely heavily on the state to fund these projects. We really have to stay on the front burner with this. We need to work with the strike force that is trying to keep people’s feet to the fire to keep these projects on schedule. We’re going to be fighting with other communities in the state for these dollars. Q: What other issues do you anticipate VICA getting involved in next year? A: Three priorities from VICA would be a great year, but I think we’re going to have a fourth. That’s going to be participating in and helping to create some kind of economic stimulus package in the Valley. Clearly, it looks like there’s going to be at least a little blip on the economic horizon. There’s planning going on nationally and locally on an economic stimulus and we want to make sure we get our share in the San Fernando Valley. Q: Of the four goals you’ve mentioned for VICA next year, is one more important than the others? A: No, but they may be spread out over different times of the year. The business tax, we want to hit hard on that at the beginning of the year because Feb. 15 is when people pay their city business tax. Our constituents will be most riled up about that in the first quarter of the year. The legislature’s going to do its budget in the second quarter of the year, so we have to focus on making sure we get our share of infrastructure money and seeing transportation projects are on track. The secession issue is going to be hottest in the third quarter and heading into the fourth quarter of the year. Q: How do you perceive the state of the Valley economy at this point? A: I think the Valley is in many ways a snapshot of the national economy. As we see a slowdown in the economy, I expect the Valley will be affected. The Valley economy is strong but, like the national economy, is vulnerable to weakness. People are more cautious about their spending. We may benefit on the defense-aerospace side, where we still have a fair bit of activity. The entertainment industry still is a very large factor. At least initially, it looks like people may be a little more hesitant to spend discretionary income and we could be affected by that. Retail is a big part of the Valley economy, and I think there is an expectation now that people will hold off on their purchases. Q: What would you like to see VICA become by the end of your two-year term? A: I would like to see VICA become part of a more broad-based coalition of groups that are working for the betterment of the San Fernando Valley. There has been a disconnect at times between business groups and some of the other social welfare organizations and the neighborhood organizations. There is a lot of common ground. You could put in a room five business leaders, five labor leaders, five homeowner association leaders and ask them to list the most important issues for them. Those lists would be the same 90 percent of the time.