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L.A. City Contracts Go Overbudget And Unreviewed As City Workers Face Layoffs

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Fri, May 7, 2010 at 12:44 PM
click to enlarge Wendy Greuel.
  • Wendy Greuel.

At a time when the city of Los Angeles faces thousands of layoffs in order to deal with a more than $400 million deficit due July 1, City Controller Wendy Greuel says the City Hall is not doing enough to ensure that contracts to outside vendors are not for work that could be done in-house.

"In 33 percent of the contracts that were audited, no review was done to determine whether outsourcing was the most cost effective and efficient option," reads a statement from Greuel's office Friday.

Among the more interesting findings from Greuel's review of city contracts:

-A Los Angeles Police Deparment contract for a risk-management system was intended to be set at $9.4 million but ended up costing $16.8 million.

-A Bureau of Street Services contract for landscaping services worth $874,000 was not reviewed as ordered under a city mandate.

"With the City facing potential layoffs of hundreds of employees and furloughing those that remain, we must ensure that every contract that the City enters into guarantees that taxpayers are getting their money's worth,' Greuel said. "Angelenos and the hundreds of employees that could be laid off this coming year deserve nothing less.'

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