Wednesday, November 03, 2004

Another Call For Reform

With few exceptions, the LADWP is packed with cronies and their minions from the Board down through many levels of management. They come and stay and invite their friends in droves. The ability of leadership to convey a clear, logical, unifying call to action, seems to be a thing of the past. Now they can be heaped into two big piles, those that are featherbedding for themselves and those that are featherbedding for somebody else. It would be no surprise that the city's other two proprietary [non-tax based revenue generating] agencies have been infiltrated in much the same manner.

The epicenter of the political machine in Los Angeles is this administration and organized labor. The decisions and actions only “secondarily” benefit the citizens of Los Angeles. The decisions primarily benefit this administration's biggest supporters: the Longshoremen, Local 18, Local 347, and the construction trades – those that pay – to name a few. The number of self-represented employee claims against the LADWP management demonstrates that the union has found political influence a more effective way to get appointments and to control the terms and conditions of labor. More rewarding than the representation of its own membership.

No one can claim partisan politics for failures in this town. The control of Los Angeles is far and wide and deep. Ever wonder why business friendly leaders are not in the LA Times? As far back as September 1909, the Los Angeles Times had a run in with the union and has never since been the same. The scary part is that with very few exceptions our situation has been the result of almost a century of single party politics and oligarchic control. Remember the old street cars we buried? Did you see the movie Chinatown?

It doesn't matter whether you choose Hahn or Villaraigosa or any of the City Council members, the end result seems to be the same. The examples of cronyism are obvious – quantity not quality. Raman Raj, former AGM at LADWP, is rumored to be Villaraigosa's guy. Thomas Hokinson, present AGM, is rumored to be Hahn's guy. S. David Freeman, David Wiggs and Henry Martinez, former and standing GMs, have demonstrated their allegiance in savvy ways. In the wings -- Ed Miller, Hal Lindsey, and a host of others... If they would appoint true leaders, they would not need so many consultants or personal services contracts to keep these ex officios on the payroll, now would they? Larry Keller of the Harbor Department and Raman Raj and soon to be David Wiggs at LADWP seem to be indicative of the practice.

Did Hahn finally pick a peach from the lemon tree? Albeit I have never met the man, I have no evidence to support Hahn's latest recommendation of Ron Deaton or the Board's big rubber stamp will mean anything different than maintaining the status quo. We must assume like Laura Chick and the rest, Mr. Deaton, top Chief Legislative Analyst and most powerful official, is aware of the pandering that is going on at citizens expense. In the absence of any obvious action on his part to have stopped the behavior, we have to assume his appointment will not be any different from any other of Hahn's appointments. We don’t see Deaton accepting the position at the pre-Wiggs rate, do we? The Board is already pushing for Wiggs as a consultant. How long has he been out? Change starts at the top. So far all we have seen is musical chairs. Consequently, there is no probity to support legitimate reform. Until these illegitimate bureaucrats are removed, nothing will change. The city's recent big financially encumbering decisions and transfers into city coffers indicate that the other proprietary organizations have experienced the same debilitating influences.

If this city is not business friendly, efforts to expand the harbor and airport are superfluous. If we make special concessions to the movie industry, without reducing the overall cost of commerce to everyone in this city, it will transfer increased costs to the rest. And then more will leave. It is a death spiral.

This city's renowned committee-sanctioned gerrymandered decision-making process is the reason businesses are leaving. The exodus of the movie industry is just another above the radar. I see more and more vacant buildings and empty store fronts, don't you? The city redevelopment efforts discussed in news articles are attempts to keep abandoned property from being so noticeable. In the long-term, establishing a business friendly environment for big growth oriented higher-tier employers rather than bringing in residents and lower-tier employers would have been the appropriate revitalizing choice. However, I think the council knew there would be no higher-tier takers. Holding out "undesirable" employers because they are non-union stifles competition. The action sends a clear message to other employers – Los Angeles is not a business friendly place and it does not support an openly competitive marketplace. The actions drive up overall living costs for every single citizen. Supporting residential building, retail, and restaurants without establishing and supporting a strong base of globally-competitive employers is the same as flushing out the last of an empty oil well with salt water. When oil riggers do that, it clearly signals the end of a run.

Compare the economic growth of Los Angeles to our local competitors: San Diego, Ventura, and Orange County. Do you remember when these bedroom communities used to commute to Los Angeles to do business? Look who has the bedroom communities and the lower-tier businesses now. It is obvious our representatives have not been supporting a Los Angeles revival. Then again, if the big three proprietary organizations don't shape up we won't be able to support a revitalization anyway.

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