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OVERSIGHT? - When a private law firm charged the City of Los Angeles $1,300 per hour, no one spoke out. But when the city enacted a new minimum wage that would guarantee tourism workers $30 an hour, the place went whacky.
Pure incredulity! A clear reflection of the reckless political climate in Los Angeles today. Is City Hall's lack of leadership or voter apathy to blame, or does ineffective leadership cause public indifference?
The answer, of course, lies in the feeble actions taken by the city’s elite which have resulted in an LA28 disarray, a homeless debacle, firestorm cleanup complaints, and unrestrained payments to a private law firm “to wriggle out of its legal obligations,” as an opposing attorney put it.
Without a whimper, that’s how the invoice from Gibson Dunn & Crutcher LLP was received by a city already in deep financial trouble, a billing that amounts to $140,000 per day for legal work to determine whether control over the city's homelessness programs should be taken away from Mayor Karen Bass and the City Council and turned over to a third-party receiver, according to the Los Angeles Times.
Startlingly, the law firm billed about $1.8 million for its first 13 days of work through May 30 — twice the entire two-year contract amount — according to a copy of the invoice obtained through a public records request by LAist, a member-supported public media network formerly known as KPCC.
When the city decided in May it needed outside legal help to handle the high-profile federal lawsuit, City Attorney Hydee Feldstein Soto asked the City Council to approve an initial two-year contract “not to exceed” $900,000. The council had requested to be kept in the loop. The council has not been informed, said LAist, and the $900,000 was blown in just a few days.
So, who watches over the city? Who governs it?
Consider a contrast. When the city council in May raised the minimum wage to $30 per hour for hotel and airport employees by 2028, labor unions and business groups became engaged in political schemes and outrageous fights. On one hand, the city’s economy would be in absolute chaos if the powerful Unite Here Local 11 union put four ballot proposals before voters, say critics. On the other, business leaders have come under fire for filing a ballot petition that would repeal the city’s $800 million business tax, an action criticized by the city which claims it would gut funding for important services.
Monica Rodriguez, city councilmember, has called the business-union fight an arms race, one that has spun out of control due to the lack of leadership at City Hall. Brokering a compromise appears unfeasible since no one appears willing to step forward. She had voted against the thirty-dollar minimum wage, looking for a balance that works for everybody.
In contrast to today`s chaos, I witnessed how the great mayor Tom Bradley brought together people from business, community, politics, labor, and the public sector to work for the good of the city. Metro Rail funding and the 1984 Olympics are good examples. He helped establish the city as a world business center, guided the expansion of the port, airport and the growth of downtown.by building coalitions.
Measures deemed crazy or insane, or courageous and bold, are popping up left and right, and all because the governance dilemma is obvious due to specious city leadership.
Leadership weaknesses are tricky and costly, and result in political volatility.
Back in May, I wrote in this space that when the City of Los Angeles faced litigation due to inactions and policies that allegedly created a hazardous environment in the Skid Row area, what actions did it take? Of course, it hired the best attorneys money could buy—powerful and well connected—to defend itself.
Based on my experience in government, I wrote that I have witnessed the rampant charging methods used by some large law firms to fleece unwary governments. First comes the exorbitant hourly rates, then overcharges and surcharges follow. Bureaucrats do not bother to examine the billing, thus ingesting the extravagant costs.
I said it was not uncommon for the City Attorney to engage companies on a sole source basis with a small initial fee that eventually balloons to multimillion dollars.
But the ship called LA is off course today. A safe port is nowhere in sight and treacherous waters frighten everyone except for those at the helm. Is it because they do not recognize the dangers, or is it simply because they do not know how to steer the vessel and control its course?
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(Nick Patsaouras is an electrical engineer and civic leader whose firm has shaped projects across commercial, medical, and entertainment sectors. A longtime public advocate, he ran for Mayor in 1993 with a focus on rebuilding L.A. through transportation. He has served on major public boards, including the Department of Water and Power, Metro, and the Board of Zoning Appeals, helping guide infrastructure and planning policy in Los Angeles. Nick Patsaouras is also the author of "The Making of Modern Los Angeles".)
