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L.A. Overspends by $27,378 an Hour

Two key perks: free gas and cars

You'd be surprised at what goes on just below the surface of Los Angeles City Hall, which is mired in years of fiscal cutbacks that at various times have decimated the hours at 73 public libraries, cut maintenance at parks, forced early retirements and now are seriously slowing down fire department emergency response times.

Take, for example, the full-service gas station across the street, in the underground City Hall East parking garage, complete with two fuel pumps and a car wash, responsible for serving what is widely known to city politicians, city officials and their aides as the "Executive Fleet."

The Executive Fleet is composed of more than 200 city-owned vehicles reserved for elected officials, their staffers and assorted department heads. The cars, which are supposed to be used strictly for city business, come with free maintenance — and free gas.

They're even exempt from paying for parking meters. This week, Mayor Antonio Villaraigosa proposed unusually high new parking fines for city residents, of up to $100 for a routine offense. But if the City Council is ticketed by a presumptuous meter maid, the tickets are quietly tossed.

As of 2009, when then-Controller Laura Chick audited the Executive Fleet, the cost to taxpayers — including maintenance, fuel and depreciation — was $1.3 million a year.

Los Angeles City Council members say they're always on the job, and a city-owned car is more efficient than keeping track of mileage. But Chick, who refused to use her city car as a council member but did use one as city controller, disagrees.

"Was [the car] absolutely necessary? I don't think so," she says. "It was a perk that came with the job, along with the salary and other benefits." In fact, very few big cities in America pay for the vehicles, gas and maintenance of politicians and their aides.

The Executive Fleet is the tip of the iceberg. The city owns legions of vehicles and operates 141 tiny gas stations around L.A., most tucked inside police and fire stations.

According to Controller Wendy Greuel, the city spends $28.6 million a year on 13.8 million gallons of fuel. That's a good price per gallon, but also underscores just how many vehicles L.A. owns.

"There are an awful lot of those vehicles out there," says Ron Galperin, who's running for city controller in 2013. "The Fire Department has a special vehicle for making pancakes."

On April 20, Villaraigosa released his budget for 2012-13, a 433-page document that attempts to detail how City Hall will spend $7.2 billion and cut its deficit of at least $240 million. The budget provoked an irate reaction from union leaders over a proposal to eliminate 669 city jobs — and an equally irate reaction from L.A. Neighborhood Council members and budget hawks.

City Hall overspends by $27,378 an hour, 24/7. Many see the budget as a rather pathetic document that willingly ignores the scope of problems facing Los Angeles.

"The city's not growing, but our expenses are," says Stephen Box, a bicycle activist–turned–budget advocate who ran for City Council in 2011. "And you cannot get away from the fact that we're postponing the inevitable: infrastructure, police overtime and pension liabilities."

Villaraigosa proposes such spending as $1 million to fill 350,000 potholes — an impressive-sounding figure that most budget watchers say would barely make a dent in the City Council's and mayor's years of neglecting street infrastructure.

"It sounds like a great number," says Jay Handal, chairman of the Neighborhood Council Budget Advocates. "But our sidewalks are crumbling, our streets are crumbling. Filling 350,000 potholes — this is a joke."

Maintenance of public assets, in fact, is one of the few core city services that the Los Angeles City Council and the mayor must attend to. In tattered L.A., serious maintenance is widely seen as one of City Hall's great failures.

Handal points to the new LAPD headquarters, inartfully dubbed PAB, built in 2009.

The city coughed up $437 million for the beautiful new Police Administration Building — but last year failed to allocate money to tend to the beautiful plants in front.

"It's like investing in a tuxedo when you can't get a shave and a haircut," Box says.

In reaction to bad press, the new budget provides money to maintain the gardens. But other examples abound. The Fire Department trucks don't have basic GPS — a point made by former mayoral candidate Austin Beutner. In emergencies, firefighters unfurl paper maps or use their own smartphones.

To budget watchers, another brazen failure by the City Council and Villaraigosa is the city's pension and health care promises.

"The elephant in the room is pensions," says Jack Humphreville, publisher of the Recycler newspaper and the L.A. Watchdog blogger at CityWatch.com. Humphreville estimates the city is short by $10 billion to $20 billion, a veritable black hole of debt closer to the size of a state or federal disaster. If paid out, these liabilities could obliterate L.A.'s long-term fiscal health.

Huge deficits — like the one now being debated by the City Council Budget and Finance Committee, chaired by Councilman Paul Krekorian — face cities everywhere: In the 1990s and 2000s, when the economy was in better shape, elected officials voted to raise salaries and retirement benefits for city workers — moves that seemed affordable. But as city-paid health insurance premiums for city workers skyrocketed and revenues dipped, cities began staring into the abyss.

For his part, Villaraigosa is trying to eliminate just enough jobs to keep the lights on. A short-timer, his plan does nothing to address the crisis or such inexorably decaying assets as the street system.

"There is a concern that people will lose jobs" with the city, and the work would be done by contractors, says Shawn Simons, president of the North Area Development Neighborhood Council.

Many things the city does, like trash collection, could perhaps be done more efficiently by an outside contractor. But Villaraigosa and councilmembers including Eric Garcetti and Herb Wesson would rather keep the work inside City Hall than risk upsetting powerful public employee unions who help their re-election campaigns.

"They feel that this is the 'city family,' " Simons says. "And the 'city family' is more important than the 'city residents' who pay for the 'city family.' "

That "city family" includes four or five gas station attendants in the City Hall parking garage who dispense thousands of gallons of free gas to any politician or chief of staff with a car from the Executive Fleet. It's not the biggest controversy ever to hit Spring Street — providing free gas to affluent L.A. City Council members who are paid $178,789 a year, or city department heads who make $200,000 to $300,000.

But it's just the kind of thing that really enrages people.

The "city family" gets that. When L.A. Weekly attempted to interview gas pump employees — to ask who gets free gas, for example — a supervisor insisted the newspaper get special permission. The Weekly was curtly escorted out of the city garage.

After seeking "special" permission, the Weekly was informed by Angela Sherick, assistant general manager of the Department of General Services, "All information pertaining to [the department] must come from the general manager.  If you would like to submit questions, we will answer them and get them back to you."

When the Weekly submitted a few questions about the Executive Fleet, it was instructed to fill out a California Public Records Act request — the kind of legal paperwork most cities reserve for complex questions about complex issues.

Reach the writer at hillelaron@mac.com.

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Angry City Worker
Angry City Worker

I'm a City employee as well. It is demoralizing to read stories like this, knowing that our so-called leaders will not do anything to fix the problems.

Term limits are one big reason for this situation. Politicians are naturally short-term thinkers, but term limits have made the situation much worse. Dealing with big-long-term problems now just gets kicked down the road to the next group of folks. The employee unions share some of the blame here, though pay and benefit increases have to be approved by elected officials; if they had stiffer spines, perhaps we would have better balance.

The pension issue is huge. Like almost all companies, the Federal Government got rid of its pension program over 25 years ago because it was completely unaffordable. The City and state face the same issues, but are far too late in making the needed changes.

I will disagree with some of the other comments regarding City employees generally. While there are certainly those who abuse the public trust or do as little as possible, a LOT of us believe in public service and care about making the City work. If you've enjoyed a park or Griffith Observatory, been helped by a police or fire officer, or had a pothole filled on your street, those are City workers. We don't like seeing the waste and abuse either, but the people setting the policies are the ones chosen by the voters. If this story makes you mad, DO something about it!

Maley
Maley

I'm a city employee & there are so many people that work for the city & at LAPDwho do absolutely nothing, all day long, nothing but talk & talk & talk then complain that they have to work. If tax players know what their money was paying for they would riot & demand their money back. the city of LA is corrupt.

Hillel Aron
Hillel Aron

i would love to hear more.hillelaron@mac.com

It was once a nice city
It was once a nice city

Who can get us out of this mess?

Can't someone like Riordan or some other rich dude put something like Wisconsin's law on our ballot? Oh wait: we drove out the rich manufacturing dudes.

Rich entertainment dudes don't live in LA, and they don't do heavy lifting: only benefits for soft causes.

Our roads, schools, pools, etc deteriorate so we can pay LADWP garage attendants 73k a year, etc., etc. Pensions everywhere. We can never lay anyone off. Bernard Parks was the ONLY one that seemed to get it, and he was marginalized.

LA is collapsing but it has time to agonize over plastic grocery bags.

But Villagarosia will be gone when the SHTF. He'll still have his pension though.

Los Angeles, the Detroit of the west Coast.

Lucile
Lucile

my neighbor's mom makes $75 an hour on the laptop. She has been fired from work for 10 months but last month her paycheck was $19924 just working on the laptop for a few hours. Here's the site to read more lazycash42.c()m

Scottschwab
Scottschwab

As an actual city employee, I can say things are much worse than the article states. I see waste on a scale You would not believe every day. Millions of tax payer money wasted with zero accountability. I have seen people receive awards for wasting millions on useless or abandoned projects. It sickens many of my fellow employees but we are powerless against the management and politicians.

Tinytim
Tinytim

so when are we going to see your write up on Los Angeles County Dept. of Public Works, these aren't even elected officials, they get a great salary, benefits, and retirement, and the taxpayer foots the bill for them to drive leased vehicles of their choice from their home to work and back. They get gas for FREE, get their car serviced (including HAND WASHING of their vehicle) by County staff, during work hours....and these vehicles are EXEMPT. There are department heads that are driving almost 80-100 miles a day round trip from home to work. Why should the taxpayer foot the bill for people to drive to work?

Lucile
Lucile

my classmate's sister makes $88/hr on the internet. She has been fired from work for 8 months but last month her paycheck was $21668 just working on the internet for a few hours. Read more on this site lazycash42.c()m

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Bewford
Bewford

And yet, the residents re-elect the same people over and over and over and over and over and....

anonymous
anonymous

City Hall is the Versailles of LA. The only difference is that the French did something about it.

Hindinwood
Hindinwood

It took me over a year to get the Bureau of Sanitation to stop charging my building for trash services we don't receive. A YEAR. And it was only resolved after a lawyer got involved. The private trash service our building uses costs less than 1/2 of what the city charges, btw. Angelinos need to start asking some serious questions about transparency and accountability, and specifically WHY we are subsidizing these outrageous salaries and perks.

Draimanformayor Losangeles
Draimanformayor Losangeles

The Current elected officials are not qualified to be the next Mayor of Los Angeles! Rev1 A good argument against current administration officials running for mayor is that Wendy Greuel who has been in the city council since 2012 and is "all of a sudden" finding problems as controller and as a now mayoral candidate that she didn't seem to notice as a council member for over 9 years. That Eric Garcetti has been "at the helm of city council for over a decade of decline and deterioration." That Jan Perry is much like the others she has been in office since 2001. That Austin Beutner can't possibly escape blame after having run 13 city departments, with the position of First Deputy Mayor and Chief Executive for Economic and Business Policy, as well as General Manager of the Los Angeles Department of Water and Power 1994-1996. None of them have objected or put up an argument while in office against the policies that have brought Los Angeles to the verge of bankruptcy and total economic disaster, the worst in 8 decades. And that LA’s outgoing Mayor Antonio Villaraigosa makes a strong argument for letting a complete outsider give it a go. An outsider has no allegiance to the political machine. Los Angeles must start with a clean slate at City Hall. From the current list of candidates, I can see only two outsiders that are qualified; YJ Draiman & Kevin James. We have an opportunity to elect and put in Los Angeles City Hall a new Mayor and 8 out of the 15 Councilmen that are up for election. This could change the face of the administration drastically and bring about a change of operation, where sound decisions and transparency will be the new mandate for LA City Hall. The mayor of the city of Los Angeles must be a leader like no other leader, he must be an exceptional administrator and trustworthy. He must have top notch advisers to advice him in bringing LA to economic health. A city of Los Angeles with about 4 million people and spans an area of 465 square miles that has an economic engine that by far surpasses many countries; it is an enormous responsibility and must be managed properly.

If LA keeps taxing its people to death there will be nobody left in the city to collect taxes from. Many people and businesses are leaving the city in droves.

Once More
Once More

Have the jail trustees take care of the plants and eliminate ALL taxpayer funded automobiles and wasteful maintenance and fuel costs, duh.

SaveLA
SaveLA

People seen to think that private contractors are the answer. If you check the records for private contracted work done for the city I'm sure you'll find that while the contractors bid very low, the constantly went over budget by large percentages. And another thing. The type of back end paperwork required to keep every penny accounted for is redundant, tedious and time consuming. No contractor will provide that kind of support. I know. I work for the city and have seen it time and time again. LA weekly has run stories in the past about contractor abuse. The get in to the system and rack up huge bills for the city. Then ultimately the city employees end up cleaning up the mess and finishing the jobs properly that the contractors jacked up and or never finished. We employees see the waste first hand and could clean up quite a bit but no one listens to us. They'll hire consultants to talk to us and pay millions for them to tell city hall what they could have gotten from the work force for free. Don't be pissed at the civil servants. We want to do a good job. We want to help save money. The unfortunate truth of the matter is that your elected officials not only don't listen to you, they don't listen to us either.

 
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