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City of Vernon in Fight to Death With Assembly Speaker John Perez

The city of Vernon may be the nastiest place in California.

30th Street in Vernon dead-ends into an ExxonMobil terminal.
PHOTO BY ANNE FISHBEIN
30th Street in Vernon dead-ends into an ExxonMobil terminal.
The downtown Los Angeles skyline, about four miles away, looms beyond the L.A. River as it flows through Vernon.
PHOTO BY ANNE FISHBEIN
The downtown Los Angeles skyline, about four miles away, looms beyond the L.A. River as it flows through Vernon.

The industrial city a few miles southeast of downtown Los Angeles is home to the region's last remaining slaughterhouse, a handful of rendering plants, chemical manufacturers and a gas-fired power plant.

It may also be the most corrupt five square miles in California, with a former city administrator quintuple-dipping his way to a $600,000 annual paycheck and other executives pocketing huge salaries.

All in all, there is little to recommend this ugly, smelly and rotten little borough.

But does that mean it deserves to die?

The region's most powerful lawmaker, Assembly Speaker John Pérez, is trying to take the unprecedented step of abolishing a charter city against its will. In his view, the only way to end corruption in Vernon is to wipe the prickly 106-year-old burg from the map.

Given that Vernon has just 112 residents, many of whom work for the city or are related to City Council members, Pérez says voters simply aren't capable of keeping their government honest.

It's a curious argument. If Vernon isn't worthy, why should the city of Bell continue to exist? And what's to stop the Legislature from abolishing San Francisco or Los Angeles if their leaders do something state legislators don't like? And who made the Legislature jury and executioner anyhow? When the Legislature suffered a major bribery scandal in the late 1980s, did anybody try to abolish California's statehood?

None of those questions has deterred Pérez from his single-minded quest to put Vernon out of business. He has refused to listen to those who say eliminating the city will lead to dramatic, unintended consequences, including the loss of thousands of jobs. He has turned a deaf ear to arguments that the city can be reformed. He has refused to negotiate for anything less than total surrender.

Now, as summer heats up, there's a running gunfight between one ornery lawmaker and the nastiest town in California.

Which black hat will win?

A CITY IN NAME ONLY

The truth about Vernon is that it has always been something of a charade — a functioning city in name only. Consider the city's public library. It's little more than a storage closet at City Hall. The hours posted on the door — Monday to Thursday, 3-5 p.m. — are fictional because it's always closed. Some books are on the shelves, but you can't check them out. Ask for a copy of a book on Vernon history and you'll be told to file a public records request.

The city has no parks, no pools, no playgrounds — not even a grocery store.

Vernon is less a city than an industrial park with its own police force. (See "City of Vernon vs. Assembly Speaker John Perez: A Photo Essay.")

The city owes its existence to John Baptiste Leonis, who persuaded three railroads — the Southern Pacific, the Santa Fe and the Union Pacific — to build a spur to his ranch and create an "industrial city" in 1905. Leonis was born into a poor Basque family in the French Pyrenees. He died a rich man in 1953, with a six-bedroom Italianate mansion in Hancock Park and an estate worth $8 million, which passed to his grandson.

Leonis, who served on the City Council for more than 45 years, gave a bit of wisdom to his grandson, Leonis Malburg, who would serve for 53 years: "Politics is a two-headed snake."

Vernon was run by a couple of families, and was closed almost entirely to outsiders. It rarely held elections. The city owned most of the residential property, and subsidized the rent. Many residents were city employees or relatives of the council members. They tended not to rock the boat.

Strangers who set foot in Vernon City Council meetings were treated with suspicion or downright hostility.

"It's a very, very private city," says Supervisor Gloria Molina, who has battled Vernon for decades. "Vernon has always operated for its own special and unique interests and doesn't really care about talking to anyone."

That secrecy has allowed a series of administrators to plunder the city treasury.

Bruce Malkenhorst, who held five city jobs at once, rode a city-paid limo to work and still collects the largest pension in the state. He pleaded guilty last week to misappropriating funds.

After Malkenhorst was pushed out, the city hired Donal O'Callaghan, who made almost $800,000, much of it through a consulting contract paid to a company run by his wife. Last fall, he was indicted on a relatively minor conflict-of-interest charge and forced to resign.

Nowadays, there is Eric Fresch, an attorney and former city administrator who consults for Vernon Light and Power. He collects more than $1 million a year, and has been described as the new power behind the throne.

In the absence of any electorate to speak of, the primary oversight of the city comes from the L.A. County grand jury. It has taken prosecutors three tries and 65 years to break the grip the Leonis family had on the city for a century. Leonis and Malburg each were indicted, 35 years apart, for the crime of serving as Vernon's mayor while living in the same 7,000-square-foot mansion on South Hudson Street in Los Angeles. In both cases, in 1943 and 1978, the charges were dropped.

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15 comments
gUEST
gUEST

Very interesting and detailed article. You provided a lot of new detail w/regard to Perez BUT i'm not sure i understand why you did not elaborate on Mr. Eric T. Fresch. He served as City Administrator, as well as City Attorney, for approximately 1 year (city attorney longer). You, like so many other reporters, will not or cannot shed any light to the general public on all that has occurred while Mr. Eric T. Fresch was in charge aside from his high salary. Why is everyone so afraid of the elusive Mr. Fresch? No one can even get a current photo of him -tsk, tsk, tsk. Aside from that i enjoyed your article.

Rick
Rick

The city of Vernon is like a factory town in China. No free elections. Rule for life by a corrupt handful of leaders. Banishment of dissidents. Absence of environment regulations. Worker exploitation. The ugliness and stench of a place so toxic and soul-withering that its leaders would rather die than live there. It's what the future looks like in the global race to the bottom.

RobE
RobE

"Mmmmmmmm waking up to the smell of a rendering plant surely would be the selling point for me! "

You've obviously never been to Tacoma, Washington. The scent from the paper mills is so notorious it is referred to as, "the Tacoma Aroma."

Wilmington, as someone alluded to earlier, is also damned nasty.

RobE
RobE

"Get corruption out of Vernon i agree,but hell why stop there,lets realy take a look at the big fish in the pond LOS ANGELES and all the bull shit that goes on there"

That's a valid point. I mean, handing over a corrupt city such as Vernon to hustlers such as Mark Ridley-Thomas, Mike Antonovich on the Board of Supervisors of the whores for developers that comprise the various city councils in the L.A. area is kind of a joke. It's like shutting down the Genovese Crime Family and allocating its ill gotten riches to the other Mafia outfits.

However, you then completely blow it by mentioning what the Teamsters have done for you. The fact is that the Teamsters supported Ronald Reagan, G.W. Bush and Richard Nixon, all three of which were virulently anti-union, and who comprise three reasons why wages have been stagnant when viewed against inflation since the mid-1970's. In recent history, the sad truth is that the Teamsters have been too often part of the problem rather than the solution. And its legacy of corruption and organized crime connections is hardly done any public relations favors when it starts backing the sleazeballs who run Vernon.

Campym3
Campym3

what about the fact that john (mamacito) perez and antonio(carnalito) villaraigosa are cousins?????? "hey,cuz,what's shakin' down"? "hmmm... i see a cash cow in revenue for us in gobbling up little vernon"..... very interesting. stay tuned-the binding's gettin' cheezy!!

RobE
RobE

"But others probably would shut down without Vernon's low taxes and low fire insurance and utility rates."

Come on Gene, you couldn't check into the claims? Instead you effectively allow yourself to be insidiously used as part of Vernon's public relations team when you slip unsupported crap like that in. Guesses ain't facts. Ask Donald Rumsfeld.

Now you may be right, but how about you come up with some verifiable, disinterested facts that support that assertion? Or is that too much to expect from the media these days?

Mvoedzoe
Mvoedzoe

Your report in the number of union jobs is disingenuous. To be sure 10,000 jobs in Vernon are unionized, but that only amounts to 20 %. Of the other 40,000 non-union jobs, how many of these are in sweat shops? How many of these jobs are held by undocumented immigrants, who are easily exploited? Wage theft is a serious problem in Los Angeles County, costing working people millions of dollars. How much of this occurs in Vernon?

Finally, when we are talking pollution, "What happens in Vernon, doesn't stay in Vernon" jusr liket han "What happens in Vegas, doesn't stay in Vegas." Like the STD's that a high roller might catch in Vegas, the toxic substances that Vernon produces do not stay in Vernon. In one way or the other, we all pay the bill for the illnesses that irresponsible industries in Vernon produce, and it's really criminal that many of the victims of this pollution are children. (And isn't it too bad that I have to frame this problem in terms of money - as if human lives and human suffering don't count?)

Vernon is a feudal fief. It needs to be shut down.

Mperez
Mperez

Get corruption out of Vernon i agree,but hell why stop there,lets realy take a look at the big fish in the pond LOS ANGELES and all the bull shit that goes on there. im a labor leader that represents Teamster members in vernon for the last 23 years,i started my first job in a rendering plant (Baker Commodities) when i was 19 years old, i was able to make a good living because of a teamster contract i worked under,you greedy basters that never realy worked in this envirement want things on a silver platter well GOD-DAMMIT im so tired of your BULL-SHIT get it from the BIG FISH, leave VERNON the city it is A CITY WHERE A MAN CAN WORK AND RAISE A FAMILY and not depend on the State of California. MARTIN PEREZ (NO RELATIONSHIP THANK GOD)

Luzbowel
Luzbowel

Vernon is an industrial city. It needs to stay that way. Not all Cities fit into the same mold. When will people get it through their heads? The Speaker has a not so secret plan that will enrich himself and his henchmen. Whether you love Vernon or hate Vernon you can not dispute the fact that Vernon has held onto jobs that have left the rest of the State.Disincorpotation won't/can't work but Vernon does.

opensecrets
opensecrets

Vernon the most corrupt city?? Isn't L.A City Building Dept currently under federal investigation for bribery and corruption? LA City mayor and council were recently fined >100k for ethics violations!!! Is Vernon really the nastiest place?? Worse than Wilmington ( with heavily contaminated soils) or El Segundo (LA's most aromatic City-Hyperion). Why isn't these a single Superfund site in Vernon if it is so nasty?

bellhop
bellhop

Interesting twist that Ace Smith, who is allegedly producing the Vernon ad campaign has also been Villaraigosa's campaign manager. Think Antonio knew about Ace's new client?

MFR L
MFR L

Vernon--the nastiest place in California? It's not a vacation destination, but Vernon is actually the BEST place in California to operate as a manufacturer. It's an "Industrial Mayberry" providing 55,000 hardworking Californians a safe place to work.

Jj
Jj

Hey Gene I see you finally landed a real job doing real reporting...NOT!!! You are such a loser, Gene and your stories continue to be nothing but worthless sensational witch hunts.

Trucker Bob
Trucker Bob

I don't know business economics, so I can't see so many job's being lost. I can't imagine that business taxes would go up so much that it would put them out of business. To me it just sounds like corporate greed and they're just using it as an excuse.

To me if Vernon want's to truly be a legitimate city with out corruption, they should build more houses and apartments and let non-related city officials and/or city employees bu\y them and/or rent them. They have plenty of land to do this and can easily have a residential population of at least 1000 residents just to start.

OhhhYyyy
OhhhYyyy

No offense, but you obviously don't know business economics. A slight tax increase or utility increase means pass the expense on to consumers or cut costs (jobs). Why would you build more houses/apartments in Vernon. Who would want to live in an industrial city. Mmmmmmmm waking up to the smell of a rendering plant surely would be the selling point for me!

 
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