24
Fri, Jan

CalPERS’ Siege Mentality: The Castle Moat is Full, the Drawbridge is Up!

EASTSIDER-You don’t need to be a rocket scientist to know that CalPERS has taken some hits over the past months. There was the series of articles in the LA Times, OpEd pieces everywhere from the Sacramento Bee to a pretty concerted attack in a variety of electronic media. Almost all were directly aimed at CalPERS and the two court cases bobbing up at the California Supreme Court on the “California Rule.”

While that’s been going on, the CalPERS Board of Directors has been more concerned with visiting Monterey for a retreat and deciding who gets to be their President and Vice-President, than in real governance. Witness the puff pieces CalPERS has been issuing: “CalPERS joins Global Sustainability Benchmark for Real Assets Program,” “Diverse Director DataSource joins Equilar Diversity Network,” and “CalPERS Adopts Environmental, Social and Governance Strategic Plan.” 

My favorite was “CalPERS Honored as Sustainable Business of 2016.” Really, you can read it here

While the puff piece was actually about conservation, the double entendre of CalPERS’ own fiscal sustainability is impossible to ignore. Indeed, new CEO Marcie Frost noted in her lead article in the winter issue of their magazine PERSPECTIVE that “...one of my immediate priorities will be ensuring the long-term sustainability of the fund.” I wish her luck. 

Underneath the Rhetoric 

Underneath the happy face public persona of the Board and their CEO, I believe that a much darker change is occurring. Namely, the joint has been turned over to and is being run by a bunch of self-serving lawyers. 

Now lawyers, used properly, are a very good thing -- that’s why we have them to keep us out or get us out of trouble. Lawyers, given carte blanche, on the other hand, can be a very scary thing. Just look at the law firms involved in the Panama Papers overseas money laundering for the rich, or, closer to home, note the fact that around half or more of our elected politicians in California are lawyers. No wonder the State is in trouble. 

Let me give you a specific example regarding the dearth of any transparency at CalPERS, that’s been organized and orchestrated by their very own General Counsel. Readers of my column will recall that I wrote a pretty scathing piece about the hiring of a sleazebag Florida attorney named Robert Klausner to be their Fiduciary Counsel, even though he was scandal-ridden and not even licensed in the State of California. 

The process of hiring Klausner was so shoddy and manipulated by then CEO Ann Stausboll, that I characterized it as a Betrayal of Public Trust 

Well, the combination (maybe a little bit) of my articles and a lot of heat from the Naked Capitalism blog must have struck home. The NC folks partnered up with California’s First Amendment Coalition and an excellent attorney (Karl Olsen) to actually sue CalPERS and their attorneys for violating the Public Records Act. 

You can read the tale here, [[[   http://www.nakedcapitalism.com/2016/08/calpers-tainted-fiduciary-counsel-robert-klausner-departs-after-nc-publicizes-his-dubious-history.html ]]] and it says a lot about CalPERS General Counsel Matthew Jacobs ethics. Reads like a soap opera, except they’re playing with billions of dollars of public funds. 

When Klausner magically departed around August with no notice and no explanation as to why or how he was dumped, I became very interested in what was going to happen next. After all, look at the process that brought us Klausner. So I did what any red blooded American would do -- I filed a Public Records Request. 

Hiding Behind Lawyers While Rome Burns 

Orchestrated by General Counsel Jacobs, here was the dance. I wrote in mid-October asking for any and all documents regarding CalPERS search for a new fiduciary counsel. In mid-November I get a letter saying that they are “searching” and will get back to me by the end of November. 

On November 30, they send me a letter which says, basically, that everything I have asked for is exempt on the grounds of attorney-client privilege and confidentiality. So, I get a copy of the Solicitation Bid for Outside Counsel. Period. Have a nice life, pound sand. 

Then, as I am searching through Board Agendas to find out what if anything ever actually happened regarding outside fiduciary counsel, I find this gem buried in the Day 3 Agenda covering a spiffy little “offsite” Board/Executive Retreat which was held January 17-19 in Monterey CA, at the Monterey Tides. (It’s evidently hard work to be on the CalPERS Board.) 

9:05 am                  Fiduciary Training

Open Session          (Points Ballroom) 

A little digging around and I discover that the presenter for this event was one Ashley Dunning, a Partner at Nossaman LLP, one of the “mid-sized hot list” California-based law firms. Parenthetically, our very own Richard Riordan was a name partner in this same firm before he became Mayor of the City of Los Angeles. 

I also got a copy of the 75-Slide Power Point presentation Dunning gave to the Board and assembled multitudes at the session. I wonder how many Board members went to sleep as soon as the lights dimmed and the power point cranked up. C’mon. 

Upon further investigation, I note that Dunning was a partner at Manatt, Phelps, the Democratic Party powerhouse lobbying/law/consulting firm. Notice I said, was, because Nossaman LLP proudly announced in a January 6 Press Release, that she was joining the firm as Partner and Co-Chair of the firm’s Pension and Investments Group. 

Gee. Given the January 6 announcement and the January 19 presentation, does anyone doubt that she has a deal with Matthew Jacobs and is the new fiduciary counsel for CalPERS? Ya gotta love how General Counsel Jacobs wheels and deals beneath the shield of attorney-client privilege. I wonder if the tame Board ever even voted. 

Final disclosure. According to the Marin Independent Journal, Ms. Dunning does not come cheap. She was advising the Marin County Pension Board at $580/hour until her switch to Nossaman, and racked up in the neighborhood of $400,000 in one year’s billings.  

The Takeaway 

CalPERS CEO Marcie Frost is new to the job and had very little transition time when former CEO Ann Stausboll suddenly retired. Therefore she is very dependent on her executive staff, including particular lawyers like General Counsel Matthew Jacobs. 

If history is a guide, the vast majority of the Board is more interested in who gets to be their President and Vice-President and who gets to go off on junkets, than in any serious oversight of their staff. All you have to do is watch a video of their meetings. 

So everyone defaults to doing what the lawyers say. It further seems clear that the lawyers are only interested in what I characterize as a “siege mentality,” a hide-and-seek attorney-client privilege governance model used to make sure no one will really know what they’re up to. That ain’t good. 

For example, the Board recently granted Ted Eliopoulis, their Chief Investment Officer, a huge bonus ($135,000) that was probably impermissible under CalPERS own rules. Ignoring the terrible optics, this was granted just as CalPERS had to admit that the Fund’s return on investment for 2016 was a paltry 0.6%. Anybody see a disconnect here? 

Lordy, Lordy. All greased by the General Counsel. At the risk of being churlish, I note for the record that Mr. Eliopoulis has a JD. Does anyone believe that Ted is going to go against whatever Matthew Jacobs wants? 

Meanwhile, the Board of Directors proudly announces the re-election of Feckner as President and Jones as Vice-President. This is Rob Feckner’s 13th term as President. Jones scores a mere 3rd term as Vice-President. Bang up job, guys. 

Personally, I think all of this demonstrates that the staff, led by elder statesman and General Counsel Matthew Jacobs, has a ring in the collective nose of the Board of Directors; they don’t do boo without staff telling them what they should do. 

Or take a look at an even more acerbic analysis of The Role of Conflicted Lawyers At CalPERS”. 

And I thought the process that CalPERS used to hire Robert Klausner was sleazy. I had no idea what stone wall hiding really was until the lawyers got involved. 

On the other hand, they might just want to be a bit more open and transparent. In a recent federal court case blocking Aetna’s pull-out out of Obamacare in all but four of the fifteen states they serviced: 

“Aetna executives had moved heaven and earth to conceal their decision-making process from the court, in part by discussing the matter on the phone rather than in emails, and by shielding what did get put in writing with the cloak of attorney-client privilege, a practice Bates found came close to ‘malfeasance’.” 

Hmm...

 

(Tony Butka is an Eastside community activist, who has served on a neighborhood council, has a background in government and is a contributor to CityWatch.) Edited for CityWatch by Linda Abrams.

Education Politics and Our Billionaire Future

THE EVE OF DESTRUCTION-As I write this, rescuers in central Italy are desperately trying to pull victims out from a hotel that was buried in tons of snow by an avalanche. 

The avalanche was caused by a series of earthquakes. 

Although they can be extremely destructive, earthquakes are natural phenomena. 

On January 18, we learned that public education in Los Angeles was buried by a million dollar avalanche in the form of a single contribution to a local school board race by former mayor and billionaire Richard Riordan. 

Riordan is only one of many billionaires who have decided to use their vast resources in an attempt to drown out electoral competition. But there is no precedent for a million dollar campaign contribution in a municipal school board race. 

In the world of Education Reform, the GOP and the billionaires have found common ground in their rampage against the spirit of public education. We all know their names: Walton. Gates. Bezos. Zuckerberg. Individuals whose money buys them tremendous political clout. Consider this from Besty DeVos, Donald Trump’s nominee to become Secretary of Education: 

“My family is the largest single contributor of soft money to the national Republican Party…I have decided, however, to stop taking offense at the suggestion that we are buying influence. Now, I simply concede the point. We expect to foster a conservative governing philosophy consisting of limited government and respect for traditional American virtues. We expect a return on our investment; we expect a good and honest government. Furthermore, we expect the Republican Party to use the money to promote these policies and, yes, to win elections.”  

Few confirmation nomination hearings were as depressing as multi-billionaire DeVos’ pathetic stumbling over understanding federal mandates or even basic education questions. This is a woman who never studied education or attended public school or sent her children to public school; she has never held an education position. DeVoss listed as her qualifications for the position in the form of Letters to the Editor and press releases. She claims that she would still be nominated even if she hadn’t contributed over $200 million to the GOP -- that she wasn’t buying the influence she claimed earlier that, well, she was intent on buying. 

In a December, 2010 New Yorker profile on Eli Broad entitled, “The Art of the Billionaire: How Eli Broad took over Los Angeles,” former mayor Antonio Villaraigosa provided this swooning support: “What is Los Angeles -- when they write the chronicles of LA -- without Eli Broad? He can close his eyes and see the future.” 

In the shadow of Hollywood, Villaraigosa parrots one of the great confrontation scenes in cinematic history. When Jack Nicholson’s 1940’s PI Jake Gittes goes up against multi-millionaire Noah Cross (John Huston somehow channeling contemporary Eli Broad) and demands to know why brute power is so important to him, he says: “Why are you doing it? What could you buy that you can’t already afford?” 

Cross gleefully (and horrifically) responds, “The future, Mr. Gittes! The future!” 

And yes, that future is the common denominator that these financial titans are determined to buy for their own and on their terms. 

Broad’s tremendous (and outlandish) financial support has provided the backing for much of LA’s and the nation’s Ed Reform movement through his goofy, self-aggrandizing “Broad Academy” of superintendents. His greatest achievement was forcing the installation of academically and ethically challenged John Deasy to head LAUSD. After his tumultuous reign and disastrous stewardship of its finances and pedagogy, Broad took Deasy back into his secret lair, providing him ample compensation for training other “leaders” of his same mindset. Deasy rarely slinks back into public view, only choosing rare editorial appearances in the safe, rich confines of the Campbell Brown right-wing School Reform publication, The 74 (which also runs its sister LA School Report.) Follow the dominoes. It’s funding is through – sigh -- Betsy DeVos. 

In blue, blue, blue California, you are obviously going to get nowhere if you adhere to a Right Wing social agenda. The neo-liberal Education Reform Democrats eschew that portion of the GOP horror show and pretend that they are not connected to Neanderthal thinking. 

It is no surprise that the billionaires have been very quiet about DeVos’ nomination because they know they are wading into dangerous territory by supporting her. They actually support many of her privatization and charter initiatives, but of course her repugnant other right-wing beliefs are areas they are loathed to get mixed up in. 

This has always been the conundrum for Ed Reform Democrats who share the same Education Reform mentality with some of the most grotesque reactionary figures of the Republican Party. The Democrats who are running for school boards (and here in California, they are all “proud” Democrats) and who garner billionaire dollars may think Trump, DeVos and other Republicans might be wrong about economics, gay rights, Civil Rights, Women’s Rights, environmental policies or taxes, but they believe the Right Wing are geniuses about Education Policy. 

The sole issue that separates the Education Reform Democrats from their GOP counterparts is vouchers, which, ironically, Charters also have huge financial incentive to oppose. 

This was the California Charter School Association’s take on Betsy DeVos after Trump nominated her for the Education Secretary position: 

“We congratulate Betsy DeVos, a longtime supporter of charter schools, on her appointment as Secretary of Education. Mrs. DeVos has long demonstrated a commitment to providing families with improved public school options and we look forward to working with the administration on proposals allowing all students in California to access their right to a high quality public education. We encourage DeVos and the new administration to craft broad policies allowing all students and families to continue accessing the quality educational options they deserve.” 

Monica Garcia, the school board representative of LA’s 2nd District, is a long time Ed Reform favorite of billionaires and CCSA. She is not a Progressive. Right Wing education champions endorse her and her pedagogy. A Betsy DeVos stewardship of education would find quite an ally in Garcia in many areas they both support. Her championing of John Deasy’s pedagogy, charters and privatization has been miserable for the children of LA and stand in stark contrast to the fundamental ideals that Progressive educators value. 

Although School Board President Steve Zimmer’s voting record hardly seems to warrant Riordan’s financial assault on him -- since he actually has supported many of the things Riordan demands -- the name of Riordan’s organization, “LA Students for Change, Opposing Steve Zimmer for School Board 2017,” is just too stupid to be real. But, alas, it is. 

If only there was some Progressive Billionaire who would front an organization called, “Students Opposed to Dick Riordan’s Green Hose Spraying Millions of Students.” That would be an attention getter and as legitimate and accurate a moniker. 

With the advent of Trump’s absurdly plutocratic administration -- whose members’ portfolios and bank accounts boast their vile ability to influence public policy -- Richard Riordan’s fat, gold and diamond-encrusted finger on the scale has coarsened our Democracy. The whole idea and philosophy of Public Education will be lost under the weight of this dirty cash that opposes and oppresses it. 

I’m afraid that there is very little Progressives can do on horseback when confronted with the tanks and artillery Riordan and his billionaire kin can muster. Guerilla fighting in the hills might be our only recourse as we hope for a more enlightened time to re-emerge. 

The billionaire and Republican Party policies are going to define public education from now on. I have no idea how long it will take for us to dig out from the blizzard of grim policies that will smother us. The Supreme Court’s valentine to the rich through their Citizens United decision has also brought us a climate change of crisis in the role of politics and finances. 

Richard Riordan and the other plutocrats are single-handedly buying the “future” they insist we all must endure. 

Grab your shovels now, Progressives.

 

(Joshua Leibner taught in LAUSD public schools for 20 years. He is a National Board Certified teacher.) Edited for CityWatch by Linda Abrams.

Neighborhood Councils: What Might Have Been

GELFAND’S WORLD--Raphe Sonenshein (photo above) is the learned professor and expert on politics who has been teaching neighborhood council participants about the structure and function of LA city government. You might say that his public lecture series called Civic University is a primer for amateur activists. A couple of decades ago, Raphe (short for Raphael) got involved in the Charter reform movement that ultimately led to the creation of the neighborhood council system. He's been following it ever since. 

The Civic U is educational and it is also fun, largely because Raphe spins yarns about the folks who make the city run, going back to the unruly City Council members of the 1970s, Mayor Bradley, and up through today's zillions of departments and agencies we might want to know about. 

As somebody who has been both a participant and an observer of the neighborhood council system since its beginnings in 2000-2001, I've been listening to the lectures with an interested but quizzical ear. I keep thinking about what we might have done differently. What worked and what didn't? If we could change things, what would they be? 

After the class the other night, I chatted briefly with Raphe and said I had some questions for the final class meeting. Thinking about it a little more, I then suggested to him that I would like to share my questions with CityWatch readers in advance. After all, I've been grinding my own axes here for years, so why not do a little ax grinding for the CU? 

Here goes. 

  1. Are the populations served by most neighborhood councils too large? For example, a neighborhood council whose boundaries include 85,000 people is already one-third the size of a City Council district. Wouldn't we be better off if most councils included, at most, 10,000 people? Greg Nelson used to tell us about some study that suggested optimal participation in groups that were at most four or five thousand people. So what's the best trade-off between the current 96 mostly-oversized councils and the level of 4000 people per council, which would require a thousand councils in this one city? 
  1. Would the system have been better off if, from the start, neighborhood council stakeholders had simply been defined as the residents of their districts rather than the current broadly based definition with all its other categories (eg: work in the district, own property, have some other interest)? Would it be possible (say through a timely Charter amendment) to make the switch in the near future? 
  1. When I lived in an eastern city a number of years ago (hint: it is associated with deflated footballs) the residents explained very seriously that their police and politicians were "the best that money can buy." I don't see Los Angeles as having that level of corruption, nor do I find that attitude among our residents. But I do see a lot of cynicism among people who live here. It comes down to the widespread belief that the developers own the elected officials and get to do (mostly) what they want. First of all, is this cynicism merited? If it is merited, should it be explained as the result of officials who want to do good things but are trapped in a system in which campaign financing is the first necessity? Is there anything we can do about it, such as full public financing? Overall, how corrupt is the city government, if at all? 
  1. A critical question that is mostly left unverbalized, but underlies a lot of other discussions: The neighborhood councils have no official power over things such as zoning applications or where parking meters go, or any of the thousands of other choices that elected officials make. Should neighborhood councils have some power(s) and if so, which? 
  1. One long-standing gripe of mine is this: City officials say a lot of nice things to neighborhood councils, but they don't do anything to let the wider population of LA know that we even exist. That's understandable -- if more LA residents were involved in neighborhood councils, then the councils would have more political influence and they could create difficulties for elected officials. How can we solve this problem and build our numbers, either through our own efforts or through creating enough pressure on the City Council? 

Bonus question: Did the Neighborhood Council Review Commission fail in its essential mission of evaluating the structure and function of the system and if so, was that because it avoided considering changes that would require a Charter amendment? 

Second bonus question: The Charter language seems to suggest that neighborhood councils are expected to communicate with each other and work together in order to have more influence. Beyond what we've already done in terms of regional and citywide alliances, what can we do to make this happen? 

Cynicism upheld: the consolation prize 

Down where I live, there was a tightly contested congressional election to fill the seat previously held by Janice Hahn. Under the new election system, there was a runoff between two Democrats. Isadore Hall came to the battle with a long-standing career in politics, having previously served in the Assembly and the state senate. His relatively untested opponent was Nanette Barragan, an attorney who served on the Hermosa Beach City Council. Hall lost the election by four percentage points, a real shellacking for a guy who was supposed to be Hahn's heir apparent. 

Hall was out of a job, government-wise. A few days ago, the governor appointed Hall to the California Agricultural Labor Relations Board. As news stories explained, the position has a salary of $142,095. I wonder if the governor would have appointed Hall if Hall had been a Republican. Will any of the reform minded Democrats who just got elected to state party committees complain about this kind of conduct?

 

(Bob Gelfand writes on science, culture, and politics for CityWatch. He can be reached at [email protected].) 

-cw

This Is What ‘The Resistance’ Looks Like: Steve Zimmer in LAUSD 4

EDUCATION ALARM BELLS-Trump’s been working overtime to enroll anti-cabinet members, a sort of Through-The-Looking-Glass collection of zombie-apocalypse advisors whose prerequisite qualification seems to be whatever their predecessors were not. Anti-intellectual, antithetical, an anti-professional Barbarian horde of ideological battering rams, poised for imminent despoiling of the public purse and the public purpose. 

Everyone knows the drill; it has been well-commented on already. What’s still flummoxing us all is the question:  how to beat back these privateers

“Resist” is the catch-phrase du-jour, but it is a description, not a formula: Resist what, who or whom and how? 

Well, Steve Zimmer is clearly the anti-Trump choice of LAUSD 4.  

To resist Trump’s rogue cabinet of government deconstructivists, we must stand against those who would rebrand the public as private, who would catalyze the transformation of public commons into private holdings. 

We must stare down that ideology which would privatize social security, the postal service, our public park service and lands, corrections facilities and military operations, and forsake public health to a profiteering, insurance-industrial complex, as well as deny science and public broadcasting the assurance of unbiased funding altogether. 

And in insisting on that which is rightfully public and accountable to us, we must likewise desist in denying the alchemy of public district schools transformed into public charters. Operating outside of the public eye, without public input and absent public accountability, these schools are public only in the narrow sense that they siphon funds which are public. They are the ideological stepsister of privatization. But their champions are cloaked in disguises. 

Not surprisingly it is hard to see what’s going on in the confusion of revolution, particularly one in which communications have been so deliberately scrambled. It is tricky to distinguish friend from dissembling foe, real from alternate fact. 

But fortunately that same metaphorical blizzard-rope remains strung across the discombobulating swamp just as it ever was, stretching through the years of muck and gas at least as far back as Nixon’s Regime of disinformation and corruption: Follow The Money 

Remember in 2013 when New York City’s card-carrying member of the 1%, Mayor Michael Bloomberg, sent shock waves through a boring little schoolboard (schoolbored?) race on the opposite side of the country? He suffused our hyper-local election with a cool one million dollars from his citadel 3,000 miles away. And why would he do that? Who’s ever even heard of their schoolboard members -- much less had the foggiest idea what he or she does, or even paid the slightest attention to their election? 

Here’s a clue: the budget of Los Angeles’ Unified School District (LAUSD) is larger than that of the City of Los Angeles (CoLA). Moreover, half the number of CoLA electeds – just seven individuals on the LAUSD Board – control that money. And incidentally, they thereby govern the vital, bedrock, foundational process of educating our city’s youngest citizens, and raising them up to be your neighbor. 

Well that multi-million-dollar-laced schoolboard race is back on: it’s 2017 and March 7 is right around the corner. This time, the exogenous sugar daddy is LA’s republican former Mayor Dick Riordan. He is supported now as then, by LA’s own stealth puppeteer and public education foe, Eli Broad. And he’s anted up into the same fast-forwarded schoolboard race that, this time around, sports not just one, but no less than three individual challengers – all of whom are backed by the same ultra-rich, very narrow interests. 

When an election features multiple ideological clones, double- and triple-endorsed by the same billionaire-backers, that’s code, not for strength of support, but for intensity of opposition: Witnessing such big bucks being pumped into the campaign against Steve Zimmer should concern all Trump resistors. 

When the 1% swarm the public Commons they are animated not by a concern for the public, but by their interest in the public monies and by the public policies formed there.  

Bernie-supporters and Trump-resistors should no more permit Betsy DeVos to desecrate the integrity of our nation’s Office of the Secretary of Education than accept any of Zimmer’s challengers to the board of LA Unified. 

Steve Zimmer is the only candidate in LAUSD’s board District 4 who believes in public education.

Voting for Steve Zimmer is what it means to Resist Trump.  

Submit your absentee ballot application for Steve by 2/28/17.

 

(Sara Roos is a politically active resident of Mar Vista, a biostatistician, the parent of two teenaged LAUSD students and a CityWatch contributor, who blogs at redqueeninla.com) Edited for CityWatch by Linda Abrams.

California: State of Resistance

LABOR DIGS IN VS. TRUMP--California’s labor laws are stronger than federal regulations in most areas, including the minimum wage, paid sick leave, overtime for agricultural workers and domestic worker rights. The state also leads the national trend for predictive scheduling. (In 2014 San Francisco passed the nation’s first measure that requires employers to inform workers of schedules two weeks in advance; 13 states and other municipalities are currently pursuing the policy.

But it’s not all sunshine, now that fast-food mogul Andrew Puzder has been nominated to be the next Secretary of Labor. Puzder, the CEO of CKE, which owns the Carl’s Jr. and Hardee’s chains, is no admirer of California’s labor codes and last year began moving the parent company’s headquarters from California to Tennessee, complaining that “you can’t be a capitalist in this state.” Donald Trump’s nominee is widely regarded by labor advocates as a substantial threat to working standards around the country. The fallout from a Puzder labor department could well reach California.

“We may be big and we may have the Sierras, but we’re not an island,” says Ken Jacobs, who is the chair of the University of California, Berkeley’s Labor Center. “There are very serious challenges.”

But as union membership shrinks nationally and workplace protections have come under attack, California has created labor-organizing models to resist attempts to erode labor standards and impose right-to-work measures —two predicted hallmarks of a Trump administration labor policy.

The International Brotherhood of Electrical Workers Local 1245 has developed and exported to other states a leadership model that goes beyond the shop floor and trains stewards to engage in an organizing agenda to counter anti-labor attacks and to support local political and contract fights.

The California local, which has a strong presence in the Central Valley and Nevada, created an Organizing Stewards program that recruits stewards, teaches them how to connect with members and trains them in door-to-door canvassing and leadership skills.

Much of it involves on-the-ground training. Just this month the California organizing corps helped Baltimore Gas & Electric workers buck a national anti-union trend to win representation.

Nine organizing stewards went to Wisconsin to join rallies at the state capitol against Governor Scott Walker’s right-to-work policies and to reach out to other workers. Local 1245 also fielded 100 organizing stewards and active members during the 2016 election season to work full time on campaigns across California, Nevada, Arizona, Pennsylvania and Ohio to support labor-friendly candidates, says Fred Ross Jr., an organizer for the local who, along with colleague Eileen Purcell, developed the program.

Tom Dalzell, Local 1245’s business manager, views a Trump administration, especially Trump’s Supreme Court picks, with concern, but is resigned to resisting. “I don’t know what it’s going to look like,” he says. “We know we’re going to have to do it.”

Dalzell worries about potential Supreme Court decisions that could permit public employees to opt out of union membership. The only answer, he says, will be counter-organizing in the workplace with one-on-one meetings to explain why an employee should stick with his or her union. “It will be like an organizing campaign,” Dalzell says, of “people who are already taking the message of the union to people who have never had to fight for it or live without it.”

Silicon Valley Rising, a coalition of the Communication Workers of America, International Brotherhood of Teamsters, Service Employees International Union Local 521, SEIU-USWW and UNITE HERE Local 19, plus nine community organizations, formed two years ago in this region dominated by tech development.

“Silicon Valley was the poster child for income inequality,” says Maria Noel Fernandez, SVR’s campaign director. The Silicon Valley work culture is famous for its perks — shuttles sent to a tech worker’s front door, chefs serving gourmet meals, game rooms and massages. Those details make for good headlines but hide the gulf between tech employees who earn, on average, $113,000 annually, and the support staff of janitors, cafeteria workers and others, the majority of whom are contract workers who average under $20,000 a year, according to a study by University of California, Santa Cruz researchers. While tech development drives jobs in Silicon Valley, the majority of those jobs belong to service workers that serve meals and clean offices.

Silicon Valley Rising is poised to push the state of California to keep moving forward on labor and immigration standards, and to continue campaigns around employee rights, work-week rules and local minimum wage measures. The coalition is also working with employers to ensure that employees that work on the sprawling company campuses are protected from Immigration and Customs Enforcement (ICE) authorities while on the job.

Tech employees—those considered the industry talent— recently joined service workers in a march in front of the data analytics company Palantir Technologies. The protest targeted Palantir’s involvement in technologies that could support Trump’s announced programs of mass deportation and “extreme vetting” of Muslim immigrants. Trump mega-donor Peter Thiel holds the largest share of the company, one of the world’s most valuable venture-capital-backed companies.

The tech workers’ message, says Fernandez, is that “’This is not how we want our talent to be used.’ That’s not the Silicon Valley they signed up for.”

Local action is critical, says Fernandez. Labor has won on wage and work standards in cities, and Trump administration policies will thwart gains at the federal level. “Cities have to be the centers of resistance.”

The University of California system exudes the same prosperous air as the tech sector—but grad students working here as teaching assistants, tutors and lab technicians at 10 campuses in the UC system can make as little as $18,000 annually.

The fight here concerns labor standards—but has other ramifications. Funding for research and research assistants is federal, says Anke Schennink, the president of United Auto Workers Local 5810, which represents 7,000 post-doctoral researchers in the UC system. “Most of our international students are on work visas, so we’re doing education and strategy discussions around what exactly is going on and what we can do.” The local works with the national UAW to press on protecting immigrant post-doc rights.

Schennink is an immigrant from the Netherlands where “a lot of power is in the hands of labor — strikes are a common thing, not unique.” Under-paid post-doctoral students are her rank-and-file but the union’s issues go beyond pay and working conditions, and the local is prepared to defend against attacks on immigrant rights and potential federal cuts that could decimate funding for climate science, clean energy and some medical research.

“We of course have to put together a legislative and political plan with Trump as a factor,” she says.  An October contract win that created family leave and other amenities has boosted union activism and the Trump victory has actually accelerated organizing.

The Oakland-based Local 3299 of the American Federation of State, County and Municipal Employees union has a similar big-picture perspective. The local organizes front-line health-care staff members who answer phones and check in patients at UC’s 10 campuses, five medical centers and additional clinics, research laboratories and UC Hastings College of the Law. “The cuts to health care will be devastating to our members and leave millions without health care,” predicts Elizabeth Perlman, the local’s executive director.

For Perlman, guaranteeing worker rights in the Trump era means doubling down on the union’s information campaign in the face of anticipated right-to-work initiatives that are legislated from Congress or adjudicated by a Trump Supreme Court. This defensive war will require keeping in close touch with her local’s members, so “the union knows what’s important to them, what connects them to the union, who they are, where they work. It’s focus groups, it’s polling, it’s every piece of data we can collect.” The union, she says, must make hard assessments about how it connects with workers. If Supreme Court decisions give employees a choice as to whether to opt into the union, locals must work to find out what makes members value their union and be willing to participate and pay dues.

UC Berkeley’s Jacobs is encouraged by California’s innovation and energy, but remains cautious about predicting the national impact.

“We have incredible people [and] unions—if anybody can craft a solution it’s us. We should be clear-eyed that people need to fight the changes on a national level— we’re going to also have to figure out what to do as a state.”

(Bobbi Murray has reported on politics, economics, police reform and health-care issues for Los Angeles magazine, L.A. Weekly and The Nation. This piece was posted originally at Capital and Main.) Illustration by Lalo Alcaraz. –cw

Ten’s a Crowd: Big Battle Set for Garcetti’s Job

ELECTION 2017-“What’s the biggest problem facing LA today, and what would you do to solve it?” That’s the question Mayor Garcetti answered last week in a groundbreaking, single-question interview with the LA Times

Groundbreaking?  

Check it out. You’ll know what we mean before you even hit “play.” 

It’s not what the Mayor says in the video but what surrounds him, which are videos of the other mayoral candidates -- eight of the ten, to be precise -- answering the same question. Finally a clean shot for Angelenos to recognize the candidates if they fall over one. 

And the mayoral videos are a hit.  

The 2012 televised mayoral debate posted on YouTube (in two videos) has been viewed collectively 2131 times, and that’s over the course of three years.  

By contrast, the eight, two-minute videos posted on the Times Opinion Facebook page have been viewed collectively 4130 times, and that’s after only ten days. (But that’s not because of the mayor, whose viewership is average.) 

The televised debate, meanwhile, was a disservice to the public, excluding every candidate except for “the Big Four” (“no comment”), based on a criterion the moderator could not bring himself to state on air and which cannot be found on the website to which he directed the audience. 

People are just excited to hear what the candidates have to say -- and they say really interesting things. We look forward to meeting them in person. 

All this is great, but it’s just a start. And heads up to the rest of the press because you’re about to have a scrum of mayoral candidates knocking on your door. Two minutes is the magic number. That’s all we need. However you want to do it.  

But we’ll be taking notes, so….

 

(Eric Preven and Joshua Preven are public advocates for better transparency in local government. Eric is a Studio City based writer-producer and a candidate for Los Angeles mayor. Joshua is a teacher.) Edited for CityWatch by Linda Abrams.

Why Do People Protest and Does It Actually Solve a Problem?

WESTWATER DTLA--Growing up in the 1960’s in the heart of Los Angeles, I experienced multiple different political movements and their demonstrations ranging from the civil rights protests to the Vietnam War protests.

Then, when I moved to DTLA (Downtown Los Angeles) in the 1990’s to help revitalize the heart of our city, instead of moving to the Arts District as my friends expected me to, I instead chose the area around 5th and Spring.

It was then a decaying old neighborhood that, one hundred years earlier, had been the most important corner in DTLA and the heart of the city. But it was then just a half-block from 5th and Main - a notorious corner that was the entrance to Skid Row as well as being the heart of the largest drug selling district in the world.

And others then too soon came to this area to help fix the heart of our city - and the people living in it. And - in a less than two years, a couple dozen of us who made what happened here, happen the way it happened - had all arrived. And while we had never met before, we were soon all working together.

I bring this up because 5th & Spring ended up being exactly half-way between Tom Gilmore's Old Bank District next to 4th & Main and Izek Shomof's Spring Street district between 6th and 7th and that meant the old heart of the old city had also became the new heart of the new city.

And that helps explain why the starting point of the Woman's March was in Pershing Square. Located just one block west of 5th and Spring, Pershing Square is the oldest park in LA and it had long been a free speech center of the city.

Our neighborhood is also a hub for demonstrations since City Hall and the County, State and Federal buildings are all just a few marching blocks away (as is the LA Times) and a subway entrance is a block away from 5th and Spring, directly across from Pershing Square. And 5th and Spring is also where the Spring Arts Tower has the largest book store in California, the world famous The Last Bookstore.

And that is why the Woman's March first gathered and then started to march from Pershing Square.

And those are the same reasons practically every single march, protest or demonstration in DTLA passes either through or within a half-block of the corner of 5th & Spring.

That then brings us to yesterday's march and what made it unique.

But before I answer one part of your question, I should state I have been politically involved and involved in community affairs since, at least, the age of five.

But I have never once marched in demonstrations or gone into the streets to protest. I have always felt my time was better spent doing the less glamorous and less exciting day to day details of helping make things better.

That, however, doesn't mean I don't - fully and totally - support the rights of people who wish to show what they oppose and what they approve of, through public demonstrations, as long as they remain non-violent. (Though I must confess, back when we were ruled by an overseas King, my ancestors were among those UI who fired the first shots of the Revolutionary War at both the bridges of Lexington and Concord. But things were a bit different then)

So to answer the bulk of your question, yes I feel the demonstrators had legitimate reasons to show the rest of the nation what they were concerned about and what they supported.

And they tried to be on their best behavior as guests in our neighborhood. And that was a first for this neighborhood.

And, yes I agree there was far more of a sense of joy about their coming together here then there was despair over what they feared might happen.

And, yes I agree, many of them came here to have a good time and to enjoy themselves as much as they came out to protest.

But I don't think that in any way discredited their motives. If anything, it showed that these demonstrators were not just the usual suspects, and that they also represented those who don't normally march in the streets.

And, lastly, I will soon be posting more specific details and descriptions of yesterday's events and what may happen next.

 

(Brady Westwater is a writer and a longtime contributor to CityWatch. He is president of Westwater Films and Media. This perspective was posted first at Quora.com and is used here with the permission of the author.)

-cw

They Cannot Take Away Our Power

GUEST WORDS--On Saturday, I was proud to join with millions of my sisters in California and across the country to march and make clear that we have the power to advance an agenda rooted in equality, justice, and tolerance for all. It was an extraordinary day where millions of women proved we cannot be dismissed or written off to the sidelines.

I had the privilege of speaking briefly to the more than half a million people who came to Washington, D.C. for the March. Here’s what I told them: while they may have taken the House, the Senate, and the White House, they have not and cannot take away our power.

We have the power to stop this administration from targeting communities of color and deporting millions of people who have known no other home than the United States.

We have the power to create a more perfect union where the law finally guarantees equal pay for equal work, no matter your gender or race.

We have the power to defend women’s reproductive rights and the millions of women who would be left without care if Planned Parenthood is defunded by the Republicans.

We have the power to save the Affordable Care Act and our social contract from policies that would leave millions of people without access to quality and affordable health insurance.

Yesterday was the beginning of a movement where millions of women (and men) rose up to challenge lawmakers in Washington who are trying to take us backward. This movement knows that the arc of the universe is slow, but it bends toward justice -- and it is now our responsibility to continue our work and bend it ourselves.

Remember that your voice is your power. You cannot effect change if you sit on the sidelines waiting for someone else to solve the problems facing your community. Whether you were able to participate in the march yesterday or not, we need you to dig deep from here on out to take ownership of the future ahead of us.

We are stronger when we raise our voices together -- and that is precisely what we did yesterday. When people of all ages, colors, religions, and backgrounds come together, unified in our collective struggle for justice, there is nothing we cannot accomplish.

Let’s make yesterday a beginning. Stay involved -- and we will win this fight in the end. Thank you.

(Kamala Harris is US Senator for California and former California Attorney General. She can be reached here.

-cw

The Worst McMansion in LA?

@THE GUSS REPORT-The problem with one particular McMansion currently being built in Sherman Oaks is not that it towers head and shoulders above the houses to its north, the ones to its south, and all the houses across from it on the west side of the street except for one equally obese McMansion. 

The problem is that its garage also reaches far lower into the ground because it is subterranean, accessed by a deeply sloping driveway. (Photo above) This is a singularly unique feature when compared to a concentric circle of the 500 nearest single family homes.

Los Angeles City Councilmember Paul Koretz, who authored the city’s porous and ineffective moratorium on McMansions, refused to personally answer direct questions about the property, but denied through a staffer any responsibility for its permit because at the time it was issued, this address was not yet covered by the moratorium. It originally only insulated some communities, including several in the San Fernando Valley…but not this one.

Torn down to make room for the massive McMansion monstrosity was this 1479 square foot, 2-bedroom, 1.75 bath house previously on the lot since 1950.  

The old house sold for an astonishing $620,000 in February 2015. The moratorium was approved in March 2015. A permit for the teardown and construction was not finalized until September 2015. But this particular address was not protected by the moratorium until June 29, 2016, according to Koretz’s office. And the actual teardown and construction did not start until around that date. 

Koretz’s challengers in the upcoming primary point to this situation as another deliberate Koretz failure, influenced by developer money. 

One of those opponents, Jesse Creed, says, “Koretz always takes the easy route through hasty motions and legislative fixes that are worth only the paper they are written on. The toughest issue is under-enforcement, which Koretz has failed to address. This situation of under-enforcement is the developers' dream. Neighbors in my neighborhood, Beverly Grove, have complained to me of houses that are as large as the ones the new rules were supposed to eliminate.” Creed has been endorsed in the race by former LA City Controller Laura Chick. 

Another Koretz opponent, Mark Herd, says, “[Koretz’s] McMansion ordinance had a major garage loophole, and yes it was intentional….I’m sure the past will repeat itself if there’s money in it.” Of these three candidates, Herd is the only one who, to date, supports Measure S, an anti-development ballot effort that has long been a thorn in Koretz’ side. 

“Unbelievable,” a decades-long resident of the neighborhood said while looking at the construction as children played and parents chatted. “It doesn’t stick out like a sore thumb. It sticks out like a mall parking garage.”

 

(Daniel Guss, MBA, is a contributor to CityWatch, KFI AM-640, Huffington Post and elsewhere. Follow him on Twitter @TheGussReport. His opinions are his own and do not necessarily reflect the views of CityWatch.) Prepped for CityWatch by Linda Abrams.

Putting a Lid on City Hall Corruption … Here’s How It Would Work

EDITOR’S PICK—(Editor’s Note: You can mix your castor oil with orange juice or vodka but it still makes you gag. The same can be said for corruption at Los Angeles City Hall. You can call it ‘soft corruption’ or ‘moral corruption’ or ‘business as usual’ but the gagging part doesn’t go away. As this guest column mentions, some try to blame pay-to-pay on outdated LA’s Community Plans. We’re not buying it. Taking money … in any form and by any circuitous process from developers whose projects you’re about to vote on is wrong. And, if it weren’t, it’s stupid and clearly demonstrates that you think the people of Los Angeles are fools. Austin Beutner … former member of the LA 2020 Commission … have some thoughts on how we can put a lid on this pay-to-play. It’s worth the 10 minutes it will take you to consider what he had to say.)

A mysterious developer bundles large sums of money from suspicious donors and contributes it to the campaigns of the mayor and several City Council members who then approve, over the unanimous objections of the City Planning Commission, City Hall staff and much of the surrounding community, a controversial real estate project called Sea Breeze. Tammany Hall circa 1870? A remake of “Chinatown”? How about Los Angeles City Hall in 2017.

Allegations of wrongdoing surround the Sea Breeze project are serious enough to spark an investigation by the Los Angeles County district attorney. While many of the allegations involve potential violations of campaign finance laws, what about the elephant in the corner of the room? How did Los Angeles become a place where monied developers can build whatever they want without regard to existing laws or the wishes of the community?

The math on Sea Breeze is simple. The developer’s land in LA’s Harbor Gateway neighborhood was worth about $17 million zoned for industrial use. He donated $600,000, got his land rezoned for residential use and, like magic, the next day it was worth $42 million. Most people have to drive to Morongo to try and turn $600,000 into a $25 million profit overnight.

Los Angeles’ outdated zoning rules and poor planning processes are at the root of this issue. State law requires cities to maintain general plans, which must be updated every five years. The Los Angeles General Plan includes 35 separate community plans that establish legal land-use parameters for the city’s neighborhoods, plus one each for the Port of Los Angeles and Los Angeles International Airport. Unfortunately, most of these community plans have not been updated in 20 years or more. Despite City Hall’s rhetoric about zoning reform and a vision for the future, the plans remain hopelessly out of date.

What happens when Los Angeles tries to move forward with outdated plans? Requests for “updates” — zoning and planning variances — land in the hands of the 15 City Council members. They more or less have the authority to ignore the old rules and decide what projects will be built in their districts, subject to sign-off by the mayor. No project of any consequence can move forward without these approvals.

This “spot-zoning” system gives those who can afford to fill campaign coffers outsized influence over the size, shape and location of new developments in the city, with average Angelenos left out of the backroom cycle of monied interests and City Hall politicians. Is it any wonder developers are the biggest donors to City Hall?

Why is the city gifting $25 million to the Sea Breeze developer and getting back nothing, save for the $600,000 in campaign contributions to a few politicians?

The city and county are raising sales tax rates for funds to address the issues of homelessness and transportation infrastructure in our community. Both issues need to be solved, and it will cost money. But why is so much of the burden falling on the working poor? Won’t property owners benefit from better transportation infrastructure to serve their buildings, and a community with fewer homeless people? Developers already have the benefit of the bargain in Los Angeles, as real estate here is taxed at rates meaningfully less than comparable property in New York.

Is what happened at Sea Breeze unlawful? That’s for the DA to decide. By any moral standard, it is wrong and it’s a terrible waste of economic opportunity for the city. Let’s assume the project should have been approved on its merits and had the support of the community. We know the developer would have paid the City at least $600,000 to get Sea Breeze approved, same as what he gave to the politicians. But he still walked away with $24.4 million in profit, all due to the stroke of a pen in City Hall. Seems pretty obvious the city could get a better deal.

The solution to this:

  • Update the city’s community plans. The city should embark on a serious effort to make sure its plans reflect the needs of a city of the future and the input of the community. This will greatly reduce the casino atmosphere in City Hall.
  • Restrict the ability of developers to buy favors from City Hall. Several years ago, the Securities and Exchange Commission imposed strict limits on how Wall Street firms and their employees, family members and agents could contribute to city and state politics. L.A. should adopt the same rules and apply them to developers.
  • Get a better deal from developers. The city should implement a program to capture for public coffers some portion of the value from the “up-zoning” on large, new projects. This will provide funds to address high-priority needs like homelessness and transportation infrastructure.

The Sea Breeze project and others like it should be a wake-up call. We deserve a transparent and equitable way for land-use decisions to be made in our community. And we deserve to see the benefits reinvested in city services and public infrastructure, not just the pockets of developers and their elected friends.

(Austin Beutner Founder and Chairman of Vision To Learn and former member of the LA 2020 Commission. This perspective was posted earlier at Huff Post.) 

-cw

No One Wants to Talk about LA Homeowners Hidden Burden: Corruption Tax

CORRUPTION WATCH-The reason Los Angeles housing prices are outrageously high will never published by the LA Weekly, the LA Times or any other news outlet. You can be sure you will never hear it from KNBC’s Channel 4's Conan Nolan, Garcetti’s sycophant extraordinaire. Los Angeles residential real estate does not sell for its value as Living Space but rather for the hyped-up value as a Speculative Investment. The result is that Los Angeles homeowners pay a huge Corruption Tax

In 2006, Gail Goldberg, then LA’s Director of Planning, warned Eric Garcetti against allowing developers to buy the zoning they wanted rather than allowing the law to set the rules. Eric Garcetti completely ignored Director Goldberg

A developer knows he can buy five R-1 homes and then “bribe” for then to be up-zoned to multi-family, allowing him to build 30 to 60 apartments. Sure, he may have to pay an additional $10,000 to $25,000 to Mayor Garcetti’s Fund and kick down some more favors to the councilmember, but in Los Angeles, the developer, and not the law, sets the zoning for land. 

The Need for Families to Park Their Wealth 

If you’re a Family Millennial, you are looking for somewhere to “park” your wealth. Part of everyone’s income needs to be set aside and not consumed for day to day expenses. The question is, where to park one’s income? 

The Pros of Cons of Traditional Places to Park Your Wealth 

Bank accounts do not pay enough interest to make them a good place to park savings long-term. Stocks do well, but in a market rigged for the high-end traders, it’s a serious risk. In the Crash of 2008, some once “ultra-safe” stocks like Hartford Insurance lost over 90% of their value. Whole life insurance can be a very safe place to park cash, provided you deal with an insurance company that is admitted to do business in New York State. If one does not prematurely die, Whole Life Insurance will have accumulated considerable cash value by retirement time and that can become a safeguard in old age. Millions of Americans, however, park most their money in their homes. 

Traditionally, home values tend to increase over time, at least enough to keep up with inflation. The mortgages are usually paid off before retirement, which means seniors can live “rent free” except for property taxes and special assessments. In 1950, the average age to get married was 22.8 years old for men and 20.3 for women. By the year 2000, those ages had increased to 26.8 for males and 25.1 for females. After the Crash of 2008, the age at which the young started families increased to 29 for males and 27 for females (2013 data.) These figures are important because they show that people are starting families and their economic planning about seven years later than the Baby Boomers did. That leaves them less time to accumulate income for old age. 

While typical Baby Boomers will have paid off their 30-year mortgages when they are in their early fifties, most of today’s Millennials will be in their late 50s or early 60s when they finish their mortgage payments. 

When Baby Boomers, many of whom are about to retire, originally put into their homes, it was based on the homes’ value as Living Space. Now, in areas like Los Angeles, the prices of new homes are no longer based on Living Space value but on the Speculative Value to a developer. This is one facet of the disaster which Gail Goldberg foresaw. When developers can just purchase the zoning they want, they know that buying in an R-1 or R-2 area is cheaper than buying into areas which already have been up-zoned. Thus, it makes sense to buy-up detached homes. Their payments to the Mayor’s Fund and to the councilmembers will achieve whatever up-zoning the developer needs. 

In a City not based on corruption, developers would know that zoning sets the property’s use; they would not even try to buy R-1 properties. Had Garcetti heeded Gail Goldberg, today’s families could afford to purchase homes based on their value as Living Space. 

Los Angeles’ Millennial Family has to compete against developers who will bid up the price of a detached home based on its Speculative Value. Even if the family could outbid a developer today, it has to realize that tomorrow another developer can come along and buy up five or ten nearby homes and, after contributing to Garcetti’s Mayor Fund, be able to have the land up-zoned for a four-story condo project overlooking that family’s backyard. 

Residences Purchased on their Speculative Value Result in a Crash 

As more Family Millennials re-locate away from Los Angeles, reality begins to sneak into the housing market. There are fewer people to rent these new apartments or buy those new condos in the sky. 

The birth rate of the Millennials peaked twenty-five years ago. Thus, each year there will be fewer young Millennials moving into dense urban areas. While Los Angeles’ birth rate is currently high enough to out-pace deaths and the flight of the Family Millennials, LA’s birth rate is still dropping. (This is inevitable since the Family Millennials leaving are in the child-bearing age range.) 

Why Economists Fear “Corruptionism” 

There are two types of inflation: There is the normal slow upwards creep of the Consumer Price Index (CPI). Since it is slow, people can adjust to a creeping rise in consumer prices and employers can afford to pay their employees a little more so that, over all, the system remains in equilibrium. 

But Los Angeles experiences another type of inflation in the form “corruptionism” which introduces hyper-inflation into the housing market. As we have pointed out, a combination of destroying the homes of poor people and the re-valuation of residential properties for their Speculative Value have resulted in a huge increase in the cost of LA housing – an increase which reflects no increase in actual value. The housing market is based on Speculation, so rents increase in response to price increases based on that Speculation. But employers cannot afford to pay higher wages just because their employees are over paying for mortgages and rents. When housing costs jump 7% in one year, no employer can increase all his employees’ salaries by 7%.   

The increase of housing costs does not reflect an increase in the actual value of these properties as living spaces. A three-bedroom craftsman built in 1920 is not worth any more as Living Space today than it was in 1920, 1960 or 1970. Yet, when one looks at the current mortgages, one sees a monthly mortgage of about $4,000/month on a $900,000 home. Adjusted for inflation, the monthly mortgage in 2017 based on Living Space should be less than $2,000. 

Angeleno Homeowners and Renters Pay a Monthly Corruption Tax 

That means the homeowner or renter is paying over $2,000/month as a “corruption tax.” That is the amount an LA family has to pay to the bank over and above the increase of the CPI. That extra mortgage money paid each month represents no additional value to the property.   

Suppose all the money the homeowner paid in LA Corruption Tax had been invested in the stock market. Let’s be very conservative and assume that the corruption tax is only $10,000 per year. If that money had been invested in 2009, it would show a rate return of 14.315% (not adjusted for CPI inflation.) In other words, a $10,000 stock market investment in 2009 has become $14,315. In ten years, the homeowner would have an extra $140,000! 

We can all figure out our own Corruption Tax rate and how much money we would have if we had been able to invest that money in the stock market. 

Of course, we will all face the financial nightmare when corruption in the housing market again brings down the rest of the economy. That is likely to wipe out stock portfolios as well. The irony is that the closer we get to a crash, the more we should park money in insured federal bank deposits. Unlike equity in a home or stocks, those dollars do not disappear in a crash. In other words, an increase in insured savings is a hedge against the next crash. 

As Keynes knew, liquidity of capital is important to the individual. When the crash starts, you cannot get cash from your non-liquid assets fast enough to save yourself. Thus, money in government insured bank deposits can save a middle class family. But first, that family cannot have parked all its wealth in its home. The only way to avoid that financial trap is to buy a home in states like Texas or Utah or Georgia or Colorado. That way a family does not pay the LA Corruption Tax and has enough money to diversity its investments.

 

(Richard Lee Abrams is a Los Angeles attorney. He can be reached at: [email protected]. Abrams views are his own and do not necessarily reflect the views of CityWatch.) Cartoon: LA Times. Edited for CityWatch by Linda Abrams.

Next Women’s Protest Should Be Directed at LA City Council

ALPERN AT LARGE--We just saw a huge (yuuuuge?) turnout in Downtown LA (and throughout the nation) to let our new President know he was on notice to represent all citizens and constituencies of our nation.  So why does our City Council get away with treating ITS citizens and constituencies like lower life forms?   

Measure S allows us to have our own local turnout to serve the Mayor and the City Council that THEY, like our new President, is on notice to represent ALL of us. 

The LA Downtown Establishment, the Planning Politburo, the Developer Elites, and the Density Hawks are all ready to send us straight to an unlivable, environmentally-nightmarish, and family-unfriendly City of Los Angeles. 

Oh, those pesky taxpayers and ratepayers.  Give us an LADWP Ratepayer Bill of Rights while overcharging us in order to indirectly get that illicit cash to the City of Los Angeles General Budget! 

Talk to us about raising taxes while spending our taxes poorly and hurting us with initiatives that don't fulfill the intentions of those tax hikes. 

Supposedly, the upcoming Measure S "befuddles" candidates--and 10 out of 14 sitting City Councilmembers and our Mayor have come out against Measure S. 

And developers are "howling" over an end to spot zoning of oversized projects, while they KNOW DAMN WELL they could build aplenty along our major commercial corridors an ocean of 2-4 story livable projects with sufficient affordable housing and parking and infrastructure mitigations to the community.  

Unfortunately our "anti-Trump" "progressive" City Council only backs down when the taxpaying, voting citizens of our City raise a hoopla--like Paul Koretz did when developer Rick Caruso tried to ram an oversized project into the Beverly Center area. 

And now our LA Times, which has supported overdevelopment (to hell with true environmental and sustainable development!) as "progress" for years suddenly comes up with the idea of banning developer contributions to City Hall ... 

... because the Times, the Downtown Elites, and the Planning Politburo know that the process is rigged, favoring big money and sending the taxpayers of our City straight to hell.  We can scream and be ignored. 

  • Until Measure S became a reality.
  • Homeless advocates:  For Measure S.
  • Affordable housing advocates:  For Measure S.
  • Environmental advocates:  For Measure S.
  • Neighborhood advocates:  For Measure S. 

Measure S is NOT cruel.  It demands that City Hall and the Planning Department obey its own laws, and that they cannot thwart the rule of law and the laws of physics to support oversized development "for the greater good" or "for overriding considerations" of whatever nonsensical tripe that can be thrown into the faces of the rest of us...who have to obey and uphold the law! 

We CAN make more affordable housing.  We CAN obey the law.  We CAN create livable and environmentally-sustainable neighborhoods. 

And the City of Los Angeles can learn to represent us and obey the laws.  It's a doggone pity it had to take Measure S to do it, but at this point it's the only chance we have to ensure that City Hall represents its own constituents and obey its laws. 

Vote YES on Measure S, and reclaim the City of Los Angeles as YOUR city, too!

 

(Kenneth S. Alpern, M.D. is a dermatologist who has served in clinics in Los Angeles, Orange, and Riverside Counties.  He is also a Westside Village Zone Director and Board member of the Mar Vista Community Council (MVCC), previously co-chaired its Planning and Outreach Committees, and currently is Co-Chair of its MVCC Transportation/Infrastructure Committee. He is co-chair of the CD11Transportation Advisory Committee and chairs the nonprofit Transit Coalition, and can be reached at  [email protected]. He also co-chairs the grassroots Friends of the Green Line at www.fogl.us. The views expressed in this article are solely those of Dr. Alpern.) 

-cw

Lies, Liars and Alternative Facts

GELFAND’S WORLD-Los Angeles Times journalists were forbidden by their management to attend Saturday's enormous demonstration against racism and misogyny. Presumably this edict did not apply to reporters who were assigned to the story, but it did ban everyone else on the staff. Normal people who haven't attended journalism school may find this a bit incomprehensible. If the KKK were marching through Silverlake, would Times employees who live there be forbidden from standing on the sidewalk and jeering? Apparently they would be. 

I would like to suggest that the Times action, although based on an old and honored principle, went too far. I would also like to suggest that the whole underlying philosophical structure that supports this sort of ruling needs to be reassessed because it is causing modern newspaper journalism to fail us. 

What is that underlying principle? The Times management used that old term objectivity to explain their reasoning. You can read about it in Kevin Roderick's piece from LA Observed in which Times representative Marc Duvoisin wrote: 

"The Women’s March on Washington and related events in Los Angeles and around the country will take place Saturday, and a number of newsroom staffers have asked if it is OK for them to participate. 

"In keeping with the LA Times’ long-standing ethics guidelines, the answer is no. Times journalists who are not covering these events should not participate in them. 

"Under our ethics guidelines, we are all obliged to refrain from public expressions of our personal political views, in order to safeguard The Times’ objectivity in fact as well as appearance." 

The idea seems to be that newspapers like the Times feel the need to be seen as honest and honorable to a fault. On a big city daily newspaper, no reporter should bring a personal interest, either emotional or financial, to an investigation, as that direction leads to biased stories. Everybody is supposed to be the reincarnation of Detective Joe Friday from Dragnet: "All we want are the facts, ma'am." 

At the level of simple facts, there is a lot to be said for journalistic objectivity. It's important to avoid printing that Joe Smith was arrested for DUI when it was, in fact, Joe Jones. It is important to quote people accurately and to avoid making accusations without careful fact checking. 

This approach to journalistic care evolved over time. By the time I started writing for The American Reporter, the editor explained to me that before I could report that someone had likely committed a crime, it was my duty to give that person a call. Even in the most obvious cases, it was my responsibility to give the subject a chance to defend himself. The rule goes wider than this, basically to all disputes, both criminal and civil. If you accuse Jones of hitting Smith, then you have to give Jones a chance to respond. 

That's an aspect of so-called objective journalism that is defensible. Our criminal justice system guarantees the right to respond to accusations. There is no reason that journalism should be less careful. 

There is a problem though. Not everyone is honest. Some people being interviewed are not credible. Some responses are grossly illogical and some are clearly and obviously contrary to facts. 

For example, the problem comes to a head when people arguing against the science of vaccination use grossly inaccurate allegations knitted together with illogic. Up until a couple of years ago, reporters took statements from both sides of the vaccine argument and treated them more or less equally. The story would be balanced in terms of pros and cons, even though there is a mass of evidence (and a mass of expert opinion) that vastly tends towards one side rather than the other. Out of this, the defenders of science have developed the term "false balance" to describe the old fashioned (and lazy) way that such stories used to be handled. 

When it comes to journalism, politics can be a lot more difficult to write than science, because politics allows for value judgments. Opposing candidates may disagree on tax policy without necessarily doing damage to the facts. One candidate believes in spending tax dollars on public services while the other believes in protecting taxpayers from rate increases. 

So far so good. Objective journalism calls for providing the statements of both candidates, as opposed to presenting the words of the person you like better or, alternately, glorifying the person who is going to hire your nephew when he gets elected. 

Now listen very closely. That system is fine, but it's based on a world in which big city daily newspapers had a lot of clout. They helped get people elected and once in a while they helped get somebody defeated or even sent to prison. It was considered OK to send somebody to prison by exposing the facts, and not OK to try to send somebody to prison using a lot of made-up lies. 

But we're in a different world. The Los Angeles Times is competing with Fox News and the National Enquirer. They are mostly not competing for advertisers but they are competing for an audience and, critically important, they are competing in trying to present their particular world views. 

Let's consider the assertion that Barack Obama was not born in the United States. The story had supporters in the tabloids and in snarky remarks made on Fox News. According to the old tenets of objective journalism, a newspaper like the Times would be careful to review the facts, provide documents and statements made to reporters, and treat the issue as done as of that point. 

Meanwhile, the big lie was circulated and repeated on a thousand talk radio stations and by the tabloids and Fox News. 

And this is where the big city dailies have failed us. At a certain point, the assertions of the birthers (as they were called) became the story. The misstatements and illogical assertions that made up birtherism had been debunked -- they were not taken seriously by logical thinkers -- but the liars kept lying and the big lie continued to circulate. 

The real story was the violation done to journalism itself in the interest of a nasty form of partisan politics. The dailies treated this national big lie as outside of the boundaries of the objective journalism they were willing to engage in. 

There is another point of view developing. Talking Points Memo refers us to a speech given by a journalist named Dan Gillmore. Speaking to an international group in Barcelona, he argued that journalists must become activists. The full text of his speech is fairly long, but the gist is that freedom of the press and of speech are in jeopardy, and journalists have to defend them. Gillmor argues that journalists need to be activists. 

The Gillmor speech and the actions of the LA Times are directly contradictory. Gillmor presents a model of journalists as critical thinkers who work to unearth the facts and to present them while in all cases maintaining their own integrity and self respect. Journalists are expected to have principles of their own and to directly defend the principles that deal with educating the public as to the real facts. 

It's a little hard to take that heroic view of journalism as a profession and as a calling, and then explain to your staff that they can't even make a personal statement against bigotry. The vision of the newspaper employee as political eunuch comes to mind. 

The Times ban against participating in a demonstration meant to defend personal and reproductive freedom is just one symptom of the problem. 

The right wing has a giant apparatus determined to destroy the ability of the newspapers to teach what is true. That's why the right wingers constantly refer to liberal bias in newspapers. They feel the need to tear down legitimate news in order to get away with the lies they tell. 

The newspapers sort of respond -- not by embracing the idea of a healthy and constructive liberalism or even a healthy and constructive conservatism -- but by denying that any staff member suffers anything close to a political thought. 

Meanwhile, the right wing opposition is nothing but political, and revels in it. 

Until the big city newspapers recognize that they are in a fight not only for advertising dollars but for defining peoples' world view, they are on the losing side. 

The old joke is that reality has a liberal bias. It came out of the recognition that conservatism has denied such straightforward truths as evolution and global warming. 

To newspapers I say, why not embrace your bias towards real truth and allow your stories to bring out the fact that Trump's staff are lying outright to the public? 

I think we can see some of that attitude coming out in the online community. It's only been three days since the inauguration, and the amazing propensity of Trump spokesmen such as Sean Spicer and Kellyanne Conway to lie brazenly is becoming a bigger story than the substance of what they are actually saying. 

Conway has already coined the phrase that may ultimately be best remembered from the Trump years, alternative facts. Here we are, less than a week into Trump's first term (OK, just wanted to see if you were listening) and Conway has already created her own version of Hiking the Appalachian Trail. Who knows what she'll create in week number two? 

It's time that the so-called objective sources including the Times take up the real story, the objective fact that the right wing leadership has made it a practice of telling lies chronically and without moral concern. Conway's defense of "alternative facts" should be the only clue we need. 

It should be perfectly acceptable for a political story to make clear that a politician lied to the reporter. More importantly, it should be the obligation of legitimate news sources such as the Times to develop an ongoing storyline about how the right wing outlets such as Fox are misrepresenting the facts and misleading the public.

 

(Bob Gelfand writes on science, culture, and politics for CityWatch. He can be reached at [email protected]

-cw

LA Animal Services' Employee Mauled by Pit Bull ... Who Cares?

ANIMAL WATCH-Priscilla Romero, a beloved and respected ten-year veteran Animal Care Technician (ACT) at LAAS North Central shelter, credits the heroic and selfless efforts of her coworkers with saving her life when she was viciously attacked by a Pit Bull on January 14. Without hesitation, they ran to her rescue, risking their own safety -- knowing they could also become victims. 

The following is how Priscilla remembers this horrific event from her hospital bed, augmented by the emotional memories of shelter employees who were on duty that morning. 

As is customary on Saturday mornings, there had been early visitors in the kennels looking at dogs for adoption or searching for lost pets. However, by around 10:30 a.m. members of the public walking in the kennels had diminished, leaving no one in the immediate area to hear Priscilla’s screams for help. 

Priscilla entered a kennel at the back of the shelter which housed a female grey-and-white Pit Bull, named Cielo. She tried to isolate the dog in a separate area, but the mechanism to keep the metal gate lowered and in place was defective (as are many in the shelter, according to employees.) Since the dog seemed calm and was standing quietly near her, Priscilla scooped the feces from the floor and reached for the hose to wash the kennel.

Without warning, the Pit Bull lunged at her, clamping onto her right arm, disabling her from reaching her holstered radio to call for help and pulling her to the floor. The dog then attacked her left arm, tearing out large chunks of flesh and muscle. 

Because of the loud barking of dogs alarmed by the attack, Priscilla's screams could not be heard at the front of the shelter where most other staff was working. Fortunately, two male ACT's were approaching the area at that time. They heard her cries and saw her covered in blood, struggling on the floor as the dog relentlessly bit and shredded her arm.

As they ran to her, one made a radio "distress" call for assistance. Other ACT’s and the Kennel Supervisor immediately rushed to help, calling 911 and bringing a "catch" pole. The first ACT's were trying unsuccessfully to physically separate the dog from Priscilla, but it kept circling back to attack her and charge them. The Supervisor then arrived with another employee and used the pole to capture the dog. 

Seeing blood flowing profusely from Priscilla's upper left arm, Kennel Supervisor Garens Lloyd quickly used a dog leash to create a tourniquet and apply it tightly above her wounds. Two male ACT's removed their shirts and covered her arms to soak up the blood and also, so she would not see the severity of the attack. 

Paramedics arrived shortly and commended Garens for his quick action. The doctor later said the tourniquet was done perfectly. One fireman commented that Priscilla’s injuries looked like a "shark attack."

Priscilla was admitted to the hospital in critical condition. She underwent emergency surgery that lasted over five hours. Both arms are bandaged from her fingers to her shoulders. From photos, it appears her entire left biceps are gone. She was hospitalized for six days and may need numerous reconstructive surgeries. 

Where was Brenda Barnette? 

No one from LAAS management visited Priscilla at the hospital, although shelter employees from the Valley to the Harbor came. GM Brenda Barnette called Priscilla’s cell phone the day after the attack, saying, “I’m checking in to see how you're doing” and left a short, awkward, dispassionate message, which did not include "I’m sorry this happened to you." 

Brenda Barnette doesn't seem to think employee injuries are serious incidents. At the last LA Animal Services Commission Meeting on January 10, GM Barnette laughed as she described the injury to an LA Animal Services Officer attacked by an aggressive Pit Bull while responding to a call. She laughed again as she announced a second injury when the officer was later attacked by a 160-pound dog and had to fight for his life. This is not the first time GM Barnette -- who has no animal control experience--chuckled about an employee being attacked in the shelter or field. 

LAAS Commission, Council and Mayor Also Ignore Dangers to Employees 

The Commission, which heads LA Animal Services, has never questioned Barnette's inappropriate reaction and dismissal of the dangers to her employees. Neither has the Commission, Councilman Paul Koretz, the SEIU union, nor the Mayor's office insisted that corrections be made to many documented safety hazards at LAAS shelters or that faulty field equipment be repaired or replaced. LAAS  employees are still driving 2001 and 2003 trucks that LA City's Director of Fleet Services, Richard Coulson reported to Koretz’ PAW Committee in Sept. 2015 were “falling apart."  

Another example of faulty equipment and poor management was the attack on a night-shift female Animal Control Officer, who responded to a call about two attacking Pit Bulls in Eagle Rock. The ACO captured one of the 90-lb. dogs (later identified as American Bulldogs) but the other bit her leg and wrist causing serious bleeding. There was no ACO back-up on night shift, her radio emergency button “went nowhere,” and no one answered the shelter phone. Luckily, a witness called 911. 

Attacks by Pit Bulls Available for Adoption 

There are frequent reports of attacks by dogs with a recorded history of aggression adopted from LA City shelters, and numerous tearful accounts of pets being almost instantly attacked or killed. There is also a history of incidents involving humans: 

"Cielo" 

Cielo, the female Pit Bull that attacked ACT Priscilla Romero had two prior entries regarding aggression. Also, she was surrendered on Oct. 16, 2016, because she attacked other dogs. Still, she was being offered for adoption to the public. Since the real world is filled with “other dogs,” why isn’t known background information clearly described on a kennel card for prospective adopters to read?  

On Oct. 27, ACT Romero wrote that the dog bit her finger, but didn’t break the skin. On Nov. 12 another ACT noted, "BE CAUTIOUS OF THIS DOG---DOG WILL GROWL, BARE TEETH AND TRIES TO BITE AS I’M TRYING TO OPEN THE KENNEL DOOR TO PICK UP EMPTY FOOD BOWL." Wouldn’t you want to know this before taking the dog home? 

Keeping behavioral records in the computer only is unfair to employees, who do not have time to check each dog for new information every day. There is no method at LAAS kennels to discover that a new negative behavioral warning has been entered, as at other shelters. Could this be because euthanizing dangerous animals would belie Brenda Barnette’s and Best Friends’ “no kill” claims? 

“Albert” 

On Oct. 23, 2015, a stray blue-and-white male Pit Bull was impounded at the West LA shelter and named "Albert." On August 11, 2016, a man saw Albert and wanted to test his reaction to his daughter before adopting him. Albert seriously bit and injured the 8-year-old child, “… during an introduction to the family in the shelter’s play yard." A critical incident report filing was made. 

A Jan. 14, 2016, note on Albert predicted problems: “This dog is an escape artist….I would use caution around this dog, requires a very strong handler. WILL BITE WHEN IN KENNEL.” Why was Albert offered eight months later to a family with a child? 

On Aug. 30, 2016 -- nineteen days after that attack -- Albert was still at the WLA shelter, with the comment, “No owner information, no interested parties, no networking being done on Albert. Euthanasia scheduled.” Why was Albert still available for release to anyone after a critical attack on a child? And why are taxpayers paying for these prolonged stays for unadoptable animals? 

“Sammy” 

On  April 28, 2016, a Pit Bull surrendered as “Sodam” (renamed “Sammy”) with-a-violent-history of repeated-aggression, and who had just bitten an LAAS kennel worker in the abdomen, was released to NovaStar Rescue at the personal instruction of LA Animal Services GM Brenda Barnette.

However, the Hayden Bill does not require the release of surrendered animals to rescues. 

On May 15, 2016, LA Fire Department and LAPD responded to an unkempt home near downtown LA at approximately 9 p.m., where a Pit Bull was attacking a woman who “was visiting dog to determine if she wants to adopt from the rescue who had been fostering the dog.” That dog was later identified by LA Animal Services as Impound #1608123, “Sammy.” 

Sammy was alive but had been stabbed 19 times by a neighbor who heard the victim screaming.

Warehousing Aggressive Pit Bulls 

LAAS employees have expressed on-going concerns about prolonged warehousing of, especially, Pit Bulls, in the City's six shelters, where confinement and isolation increases the animals' hopelessness, frustration and aggression. Many of the Pit Bulls shown on the LAAS site have been caged for months or over a year. Why? These dogs are miserable. They are not adoptable and they take up space that could allow dozens of dogs to find new homes during that same period.

Nothing in California law requires dogs that have exhibited aggressive or dangerous behavior to be offered for adoption to individuals or families where they may attack/kill humans or other pets. But Brenda and Best Friends are determined to reach a metric called "no kill." If the dogs die from injuries or illness, they are not counted in the shelter's euthanasia stats. 

Are dog attacks just "business as usual" at LA Animal Services? 

Here is an email to Mayor Garcetti by an employee who was present when ACT Priscilla Romero was attacked. Although the writer’s name has been removed, the despair obviously is beyond caring about retaliation. This feeling is increasingly permeating Los Angeles Animal Services: 

 

Date: January 14, 2017 at 12:04:24 PM PST
To:
[email protected]
Subject: Dog mauling city employee 

            You have a serious problem within Animal Services starting and ending with Brenda [Barnette]. An hour ago a fellow employee was wheeled into the medical room, in shock, with a tourniquet on her left arm, pale as a ghost, and with tissue strewn across her chest. Employees also in shock, some crying.  Paramedics responded quickly and rushed her to the hospital.  

            The lack of response of your office, the negligence, and the dereliction that starts as your responsibility is atrocious. You should be ashamed, as this person is a friend and a good employee. Our response from our AGM after being notified and asked to temporarily close the shelter, was that 'dog bites happen all the time.' To be clear there are dog bites, and I've bandaged them, but this was a mauling. 

            This mauling, as most are now a days, was predictable. You the mayor, with the goal of "save them all" have increased and, in fact, demanded that the nature of employee's being attacked, is acceptable. Our kennels are full, dogs are in inappropriate cages, aggressive dogs are held perpetually until our statistics show that we euthanized one less dog than last year.  

            Our general manager isn't here. Why not? If I firefighter was injured on duty, or an officer shot, would the commander tell them "buck up, it's a function of your job, get back to work?" Or would they show leadership and understanding and go to the hospital to personally show their condolences. 

            This department is ridiculous and it's happening under your auspices. This time around I imagine the city will be sued, as this dog has previous memos of its aggressive nature and was otherwise placed in a public area.

(Signed by employee)

I'm sorry if this is bad form, but I'm slightly traumatized by this as well.

 

Time for a Grand Jury Investigation 

It is time for a grand jury to investigate why “no kill” is more important to the Mayor, Council and Brenda Barnette than protecting humans, ensuring the welfare of employees like Priscilla Romero, and safeguarding children and pets from aggressive/fighting-breed dogs. It also needs to determine the total cost of "no kill" to taxpayers. 

A grand jury should audit how much money is being contributed to LA City political campaigns and/or elected office-holders’ charitable accounts by all humane organizations (including their for-profit and non-profit affiliates/partners) which have programs or contracts with Los Angeles Animal Services and which demand/encourage the very inhumane "no kill" agenda. 

The focus of that myopic agenda necessitates the warehousing of aggressive/fighting dogs and other animals in city shelters despite documented evidence that they pose a safety hazard to employees and the public.  

"No kill" garners big donations from those who don't understand the suffering of these caged animals. It is time to acknowledge the misery and dissect the underlying financial motivation. 

                       

(Phyllis M. Daugherty is a former City of LA employee and a contributor to CityWatch.) Prepped for CityWatch by Linda Abrams.

‘I am Woman’: Los Angeles Tops Women’s Marches Worldwide

FIRST PERSON REPORT--On the Saturday following the Inauguration, I joined three-quarters of a million women, men, and children gathered in downtown Los Angeles in what would be the largest women’s march in the world. The crowd represented both experienced and newly minted activists. Perhaps some had originally joined for what my kids refer to as “FOMO” or fear of missing out, snapping selfies in front of colorful signage. For others, being part of something bigger quelled the fears and anxieties that had surfaced on November 8th. With hope, everyone who participated (and those who followed from their living rooms) will feel empowered to continue activist efforts to protect rights at risk and the future of the planet. 

Helen Reddy’s a capella rendition of her feminist anthem, “I Am Woman,” spoke to those of us who are old enough to remember the seventies. Women, like one in a clip broadcast on the side of a media trailer, never believed they’d be marching again for battles fought decades ago. As I stood near the staging later in the day, I overheard a college student explain to a new friend that she had stumbled into the march– but “I’m also a feminist, you know.” If we’ve become complacent about defending our rights, this election and what’s at stake may serve as a wake-up call for those of us who have been politically active, as well as those who are new to the experience. 

The mission of the Official Women’s March Los Angeles was to “stand together in solidarity for the protection of our rights, our safety, our health, and our families – recognizing that our vibrant and diverse communities are the strength of our country” and in support of “the advocacy and resistance movements that reflect our multiple and intersecting identities.” In many ways, the crowds that gathered downtown represent the diversity that makes our city so special, unified to defend the rights of all. 

As many of the speakers at the event expressed to the crowd, it’s crucial to stay organized, not only for one day. Actress and activist Christine Lahti added, “If you don’t know what choice to make, make one that helps someone else, through city council, your neighborhoods, working on ordinances.” This is just the first step.

  • For more pix on ‘sister’ Women’s Marches around the country and the world. 

 

(Beth Cone Kramer is a Los Angeles writer and a columnist for CityWatch.)

-cw

A Guywitness Account of the Women’s March in DTLA

IMPRESSIONS--The Saturday, Jan. 21 Women’s March in Downtown Los Angeles against the incoming Trump Administration was one of hundreds of similar marches across the United States and in other countries. (Photo above: Marchers on Grand Avenue in Downtown LA, one of many packed streets.) 

Occidental College political scientist Peter Dreir has calculated that the total for all demonstrations in the United States exceed 4,000,000 people. He also wrote that the final tally could be higher once more reliable counts are collected. For instance, in Los Angeles, ABC news, as well as the march organizers, estimated there were 750,000 people in total, while the New York Times reported 100,000, even lower than the LAPD’s estimate. Having been at both, I think this march was comparable in size to the immigrant rights march of 2006, which had 500,000 people. 

With such a mammoth event, many people never arrived on time, or at all, because METRO’s busses and subways were overwhelmed, with waits of two hours in North Hollywood to take the Red Line. Others followed from home through traditional media and social media. 

As an eyewitness, these are my other impressions, beyond the unexpected size of the event: 

  • Nearly all signs were made at home, with hardly any handed out at the event itself by organizers or other supportive groups. 
  • Domestic issues prevailed. The messages of these homemade signs were focused on domestic issues such as opposition to all types sexism, bigotry, racism, and nativism. They also included opposition to mass deportations, erosion of health care, and violations of civil liberties, as well as the need to combat fascist trends through more enormous street actions. 
  • Foreign policy issues ignored. Media and Democratic Party finger pointing at Russia and Vladimir Putin did not gain any traction with the demonstrators. During the entire march, among the tens of thousands of signs that swept by me, I only saw two that mentioned Russia or Putin. Clearly this highly charged dispute within the foreign policy establishment over US-Russian relations did not motivate 750,000 people to walk the streets of downtown LA for this anti-Trump Women’s March. 
  • Diversity: Those attending were of all ages. They ranged from babies to the elderly. On the east coast, I even heard a personal story of a 93-year-old woman who attended her first demonstration and loved it. Despite being called a Women’s March, there were also lots of men, but Latinos, Asians, and African-Americans were under-represented. If they were there in proportion to those who voted by Hillary Clinton or Jill Stein in the November election, there would have easily been over 1,000,000 demonstrators. 
  • Missing: During four hours at this march, we did not see anyone from the LAPD, LADOT traffic control officers, or the media. On the various approach routes, there were many LAFD trucks, but otherwise it was just waves of marchers, in some cases mixing with snarled traffic. According to news reports, a few public officials spoke at Pershing Square and City Hall, including Mayor Eric Garcetti. Apparently Hizzoner was unaware of the irony of a mayor whose administration is in total collusion with Big Real Estate through pay-to-play protesting a President whose cabinet represents total collusion between Big Business and the federal government. 
  • Insufficient planning: The organizers, working with City departments, expected 80,000 to 100,000 people, but downtown LA’s streets were overwhelmed with much greater numbers. The demonstrators had to compete with traffic on streets like Grand until sheer numbers imposed total gridlock. At Red and Purple line subway stations, there were hardly any METRO employees to help those new to transit navigate the ticketing systems and entrances. At bus stops METRO had not posted alternative routes and times because of the march. To METRO’s credit, though, bus drivers were extremely helpful in getting demonstrators into and out of the downtown 
  • What next? The tiny fraction of demonstrators who heard speeches or got handouts at Pershing Square or City Hall might have been give direction for next steps, but the vast majority of those who made it to downtown LA left in quandary over what comes next, despite their feel-good day. There are so many ways, though, for them to be engaged, including those I outlined in a previous City Watch article on climate issues, that anyone who so desires can find a vast array of local projects to help with, such as immigrant rights, environmental-justice, or the expected military conflicts either in the works or to be blundered into by the new administration.

 

(Dick Platkin is former LA City planner who recently taught courses on sustainable city planning at USC and CSUN. He is also a former union officer, who worked hard to create labor-neighbor alliances in Los Angeles. Please send corrections or comments to [email protected].)

-cw

They Go Low, We Go Local, Part II: Angelic Troublemakers

BUTCHER ON LA-Let me tell you a little bit about CityWatch. Before it was CityWatchLA, it was CharterWatch. Mark Siegel kept us all updated throughout those twenty-two tedious months we affectionately think of as “charter reform” back at the turn of the millennium. Ken Draper and the Neighborhood Councils took over and remade it as a “voice of the neighborhoods” after the new charter passed. He tells me the first mailing went to 255. Today that number has increased both logarithmetically and influentially.

Ken has an extreme vision of dramatically more engagement, deep advocacy, crisp respectful dialogue. He’s always right, you know. So: If you’re not signed up to get CityWatch, do that right now. Please share it on every one of your social media platforms. Find us on Twitter and Facebook as well. Like us, share us! For Ken! Not for me, for Ken. And Mark. And every one who claims it as part of our past and history. 

Way back when we won Neighborhood Councils in the charter, many of us wanted more; many of us took shit for years because of it. Charter §900 establishes the purpose of LA’s NCs to “promote more citizen participation in government and make government more responsive to local needs…” 

Are we all doing all we can to make that real? Participating to the maximum in upcoming city elections? For candidates as well as on issues? Is it time for that next new generation of activism and leadership in your neighborhood? What’s your Neighborhood Council doing? Attend a meeting! Check out an event!

If it’s cold in LA that means that it’s budget season in the departments as the CAO’s office is preparing the next budget. With a fairly unpopular interim CAO in that spot, it’ll be wildly interesting to watch the budget process, as it is always! 

Watch for and help the volunteers who’ve agreed to crack the code on the City and dive deep into the budget. It is, after all, the finest refinement of program development.

As President Obama said so beautifully in his farewell speech: 

“Ultimately, that’s what our democracy demands. It needs you. Not just when there’s an election, not just when your own narrow interest is at stake, but over the full span of a lifetime. If you’re tired of arguing with strangers on the Internet, try to talk with one in real life. If something needs fixing, lace up your shoes and do some organizing. If you’re disappointed by your elected officials, grab a clipboard, get some signatures, and run for office yourself. Show up. Dive in. Persevere. Sometimes you’ll win. Sometimes you’ll lose. Presuming a reservoir of goodness in others can be a risk, and there will be times when the process disappoints you. But for those of us fortunate enough to have been a part of this work, to see it up close, let me tell you, it can energize and inspire. And more often than not, your faith in America – and in Americans – will be confirmed.” 

“If you’re disappointed by your elected officials, grab a clipboard, get some signatures, and run for office yourself.” 

“Show up. Dive in. Persevere.” 

I’ll see you in Downtown Los Angeles this Saturday for the Women’s March, even if it’s cold, even if it’s raining (wah!) Pershing Square at 9:30 a.m. 

I am so inspired by the Indivisible organizing guide put out by former congressional staff members (on their own time) and the movement it is birthing. Read it, share it, love it and live it! 

There are more than 3000 “indivisible” groups organizing and mobilizing across the U.S. right now, using these lessons learned from the Tea Party’s local organizing. 

When they go low, we go local! 

As Bayard Rustin said, “We need in every bay and community a group of angelic troublemakers.”

 

(Julie Butcher writes for CityWatch, is a retired union leader and is now enjoying her new La Crescenta home and her first grandchild. She can be reached at [email protected] or on her new blog ‘The Butcher Shop - No Bones about It.’) Prepped for CityWatch by Linda Abrams.

How Much Political Bull**t are We Expected to Tolerate

RANTZ & RAVEZ--I will begin with Governor Jerry Brown’s California High Speed Rail commonly referred to as the Bullet Train. The 800 mile and 220 MPH top speed Train is expected to run from San Diego to San Francisco sometime in the distant future and possibly in our lifetime. 

The projected budget for this transportation project began at $60 plus BILLION DOLLARS with the Central Valley portion scheduled for completion in 2017. The new date for completion of this phase is now expected in 2024, seven years behind schedule. 

We now find the current facts about this transportation project that is way behind schedule and struggling for additional dollars to move forward by a Federal Railroad Administration audit. It is now known that the project is currently being built by an independent authority that has never built anything and depends on a large network of consultants and contractors for directions. 

When I talk about behind schedule I am not kidding. With this in mind, how long will this craziness continue? It will continue until the State of California gets a governor that has some common sense and is willing to admit that the Bullet Train is not going to work for California and scraps the project saving billions of dollars that can be used for a host of pressing state issues. Issues like the homeless, crime, finding the funds to keep state prisons open and a host of other serious matters that impact our daily lives. More to come on this subject as additional reports are released.

+++++++

METRO SECURITY–While I am reviewing public transportation on trains, I must bring to your attention that the Metro, our Bus and Train Service in the Los Angeles Region, has established a 24 – Hour Hotline to provide counseling to transit riders who have experienced unwarranted sexual contact or harassment on buses or trains. The Hot Line number is 844-Off-Limits or 844-633-5464. Counselors from Peace Over Violance, which has been offering counseling for sex-abused victims for more than 40 years, staff this service. 

Since I am an infrequent rider on the Orange and Red Rail Lines, Metro should start placing uniformed officers on the Lines to provide protection for the passengers. Seldom do I ever see a law enforcement officer actually riding on a bus or train in the Los Angeles region.

+++++++

CRIME REPORT--We are now in January 2017 and the crime stats for the year 2016 are being tabulated by the LAPD.   I will publish them when they are available. It is interesting to note that as of January 7, 2017, the LAPD is at 9,892 officers compared to 9,897 as of December 17, 2016. That is 5 fewer officers protecting and serving the people of Los Angeles. 

Knowing that the LAPD is having a difficult time recruiting police officers and keeping crime down, why would the City of Los Angeles try and take over from the Los Angeles County Sheriff’s Department’s Transit Policing throughout Los Angeles? MONEY. It is all about the MONEY and how the City of LA can use it for various programs. 

While the Metro Board reviews the proposals from the Sheriff’s and LAPD, the people of Los Angeles deserve to have sufficient police officers available to protect their homes and businesses. 

A recent protest in San Pedro brought to light the fact that the jail in the harbor station has been closed and that crime is increasing in the neighborhoods. From the San Fernando Valley to San Pedro and all parts in between deserve their fair share of police officers. Assigning transit operations to the LAPD will only reduce the number of LAPD officers patrolling the streets of Los Angeles.

+++++++

ILLEGAL ALIENS AND DEPORTATION--It has been recently reported that the City of Los Angeles does not have the funds to pay pending lawsuits. While the City is now pleading poverty, they come up with $2 MILLION to help defend illegal aliens facing Immigration Enforcement with the LA Justice Fund. It is all about priorities. 

While I have always believed that the legal system is there to sort out the truth and that justice must prevail, I can’t see how the taxpayers should be responsible to defend people facing Federal Immigration matters. While the City is posting $2 million dollars, the County of Los Angeles is posting $3 million. An additional $5 Million is coming from the private sector.

+++++++

LA ELECTION--Our Mayor Eric Garcetti is facing an election on March 7 along with half the City Council and the City Attorney and Controller. 

As far as the contests for Mayor, it is smooth sailing for Garcetti who is facing light opposition and over $2 Million to spend. 

Both Mike Feuer the City Attorney and Ron Galperin the City Controller are both running unopposed. The City Attorney has raised $682,091 and the Controller has raised $446,838. 

The City Council Races will be featured in my next article.  

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GRACIAS--Thank you to Ron Rinard for his email concerning my RantZ and RaveZ article that is “A Great Read.” 

Thank you to Jan Kanowitz for her comments and concern about the lack of a pedestrian safety zone in West Hills. I am working with Councilman Bob Blumenfield’s office to correct the situation.

 

(Dennis P. Zine is a 33-year member of the Los Angeles Police Department and former Vice-Chairman of the Elected Los Angeles City Charter Reform Commission, a 12-year member of the Los Angeles City Council and a current LAPD Reserve Officer who serves as a member of the Fugitive Warrant Detail assigned out of Gang and Narcotics Division. Disclosure: Zine was a candidate for City Controller last city election. He writes RantZ & RaveZ for CityWatch. You can contact him at [email protected]. Mr. Zine’s views are his own and do not reflect the views of CityWatch.) Graphic credit: LA Daily News.

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La Cienega Tower War: Developer Caruso and Councilman Koretz Make a Deal ... BWHA Pres Calls It a Joke

DEEGAN ON LA---"This compromise is a joke!" exclaimed Diana Plotkin, president of the Beverly Wilshire Homes Association, responding to CD5 Councilmeber Paul Koretz’ announcement to the the city council’s Planning and Land Use Management committee that he had reached what he called a “reasonable compromise for a middle ground” where developer Rick Caruso would reduce the height of his proposed 333 La Cienega tower by almost 25% (from 245 feet to 185 feet), and contribute a half-million dollars to the city’s Affordable Housing Trust Fund that creates affordable rental housing for low and very low income households. (Photo above: Developer Rick Caruso in front of La Cienega tower, Councilman Paul Koretz-inset.) 

Caruso, who told the committee that he agreed to the height reduction and was “happy to provide $500,000 to the Affordable Housing Trust Fund”, and Koretz had settled their differences, but one very interested party was left out in the cold and was steaming hot about what had just happened: Diana Plotkin who said “we need affordable housing, not luxury housing. It’s pay to play and we ask you (PLUM) to say no.” In a hallway interview with CityWatch, Plotkin amplified her distress charging that “Paul Koretz’ statement that he supports the community is a lie. The fact is that he never supported this community on this issue, all the way through. Our community is being crushed by this pay to play. They want a monument to their ego. Paul Koretz is out of touch with the residential community of people who vote”. 

Other stakeholders---dozens of them made pro or con public statements at the hearing-- had mixed feelings about the impact this building will have in an area currently zoned for 45 feet high. 

An overflow crowd had assembled in council chambers at City Hall to learn what’s next for developer Rick Caruso’s dream project at 333 S. La Cienega Boulevard. Leading up to the hearing, Caruso was accepting compliments from some in the community, including the Mid City West Community Council and the residential tenants of the Westbury tower adjacent to the proposed building site, but he was also fending off complaints from the homeowners association and the local Councilmember. 

At back to back press conferences two weeks ago, Diana Plotkin and Councilmember Paul Koretz (CD5) publicly announced opposition to the project. Plotkin presented Koretz with 1,000 signatures on a petition to block the project, because it was 240 feet in a 45 foot zone, and that was enough for Koretz to say the tower would be “too tall. 

Leading up to the PLUM hearing was the expectation that Caruso and Plotkin would have reached a state of detente. It turned out that it was Koretz and Plotkin that never made it to the alter. 

The neighborhood council (Mid City West Community Council) voted 22-6 to support the original 240 foot height of 333 La Cienega, and was touted by themselves and other project supporters as one of the crucial stakeholders able to influence the project. But it, too, was showing signs of disunion, through divergent takes on the value of the 333 project. “The reduction is a disappointment”, said Planning and Land Use chair Ravi Bhatia, who continued “the fund amount is only 1.4 units at MCW market price. City council does not understand the cost or importance of inclusionary zoning. Mom and pops must continue to bear the burden. It’s a land acquisition cost of well over $500,000 for mom and pops. They would still have to pay to build. That is one unit”. 

It raises the question if this is really affordable housing coming into the community. That was answered obliquely by his colleague’s public statement when MCW chair Scott Epstein said that “We are very concerned about affordable housing. A project like this will not displace affordable housing. It has the strong support of the Mid City West Community Council”. While not “displacing” affordable housing, because no housing units are being torn down to make room for the tower, this project is not creating significant affordable housing in the community either, as Bhatia points out. 

A guy that initially was the focus of community opprobrium seemed to walk out of the chamber in Teflon armor, a happy warrior in this battle that now shifts to being an almost certain done deal when the full city council meets as soon as next week to vote approval of his project, while a Councilmember and some of his constituency are at serious odds. Building a tower may be much easier than mending fences.

 

(Tim Deegan is a long-time resident and community leader in the Miracle Mile, who has served as board chair at the Mid City West Community Council and on the board of the Miracle Mile Civic Coalition. Tim can be reached at [email protected].)

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Caney Arnold: CD 15 Challenger Takes on San Pedro Safety Issues

THIS IS WHAT I KNOW-Last week, I introduced you to Caney Arnold, a progressive candidate running in the March primary. Arnold and I sat down to discuss some of his ideas to turn the city around. The candidate, who brings a background in Air Force acquisition and program management, as well as a graduate degree in Public Policy and Administration, shares that he was inspired to support progressive causes around the time of the Gulf War. 

“This campaign and my commitment while serving in office will be built around the following values: government transparency, grassroots democracy, ecology, social justice, and nonviolence,” he says. 

Transparency: 

Arnold says he is ready to support transparency because he’s “used to dealing with bureaucracy to weed out this sort of thing based on (my) career work for the Department of Defense and in the Air Force” where he learned how to work with management to get things done right. He is committed to stand up to the City Council and to work with the media to uncover conflicts of interest. “It’s not just in the campaign business but officeholders and committees are getting money from developers for office and city related purposes,” he says. 

Grassroots Democracy and Transparency: 

Arnold says listening to citizens will be an integral part of the daily management of the city -- and Neighborhood Councils will play a big part in that. “I want to increase communication with the NCs and with constituents to ensure citizens have more input in the decision-making process,” he says. He plans to actively seek input from the neighborhood councils and provide research to them before casting a vote on City Council, which is the reverse of the current practice. “As volunteers, NC board members usually don’t have the time to do this research. My office will provide information packets to each NC and formally request feedback.” 

Ecology: 

Arnold notes that his 15th District is “home to numerous oil drilling and refineries, as well as oil and natural gas storage facilities.” Safety failures involving explosions and toxic releases at these facilities have placed the community at risk. The candidate also supports reducing energy use by providing incentives to consumers and businesses, especially in fossil fuels consumption, by creating a plan to transition to sustainable 100 percent renewable energy sources, which must be approved by the Mayor and Council, backed with a firm schedule, adequate funding, and oversight. Water consumption is also an important issue that should be addressed in part by reconsidering plans for urban growth and development. 

Social Justice: 

Arnold was inspired to run in part by his volunteer involvement with the homeless population. “We need to do a better job helping our neighbors without housing,” he says. “The Housing First strategy has worked in cities across the U.S. and is the preferred approach by the federal government. We need to move away from treating homelessness as a police issue and see the root causes of homelessness, as well as to help keep people in their homes.” The Housing First approach removes the homeless from unsafe environments on the street to get them into housing, providing them with services to help them find employment and become self-sustaining again. 

Nonviolence: 

Arnold’s platform includes improved relations between police and citizens to reduce over-policing and use of excessive force. He cites the positive approach of bringing police together with citizens to address issues, promoting programs such as the Institute for Nonviolence in Los Angeles Days of Dialogue program on the Future of Policing, sponsored by Mark Ridley-Thomas’s office. 

Arnold is focused on rolling up his sleeves to turn around the status quo so that Los Angeles is a city for all residents and not just a selective few.

 

(Beth Cone Kramer is a Los Angeles writer and a columnist for CityWatch.) Edited for CityWatch by Linda Abrams.

Eight ‘Easy’ (Keynesian) Steps for Fixing the LA Economy

CORRUPTION WATCH-Now that we’re all beset upon by the new Tweeter-in-Chief, we have to take seriously the Power of the Ignoranti. While Donald Trump makes his wisdom or lack thereof visible for all to see, most of America is smugly unaware of that of which they are unaware. That’s just in the nature of being unaware. 

Over ninety-nine percent of Americans do not know that John Maynard Keynes was murdered. That does not disturb them because they don’t even know who Keynes is, or rather, was. It would be more accurate to say that Keynesianism was murdered by the 1999 repeal of the Glass-Steagall Act. Again, that does not disturb the public because they don’t know who or what Glass-Steagall was either. 

The Danger of Not Understanding the Laws of Economics. 

The problem with vast ignorance is that Ignorance Kills. Los Angeles City Hall is a Temple to Crimogenics due to the fact that Angelenos are suffering from fatal doses of Ignoranitus Economicus. See my June 26, 2016 article in CityWatch. In brief, we know nothing about the laws of economics. The rest of America similarly suffers ever since Bill Clinton, Wall Street, and Congress joined together to kill off Keynesian economics with the repeal of Glass-Steagall in 1999, the legitimizing of criminal Credit Default Swaps and allowing Wall Street to evade the 1936 Commodities Exchange Act. 

Since Hollywood is the land of re-runs, sequels, and remakes, it is fitting that this remake of Keynesian Economics comes from La La Land.

The Price System - The Bedrock of All Economic Systems. 

John Maynard Keynes, as well as Adam Smith and Friedrich Hayek, found the need to protect the Price System to be axiomatic – and what honest person wouldn’t? The Price System involves the billions of individual decisions made each day by billions of people about what to buy and what to sell and for how much. Adam Smith referred to this as the Invisible Hand which many people misunderstood to mean God. No, God does not set prices. People set the prices. 

The first domestic function of any and all governments is to protect the Price System so that the prices we pay for things and services are based upon their actual values. No frauds and no manipulation can be allowed to taint the Price System. No economy can function properly when people do not know what things are worth. 

If I buy a Mercedes SL and all I get is a shell with a 1970's Pinto interior, I feel cheated. Fraud destroys the Price System. People need to know what they will get for their money. Likewise, if I buy a real Mercedes and give the guy counterfeit money which the government then confiscates, the guy is cheated. If I buy a home for $900,000, but it is worth only $390,000, I have been cheated. 

It bears repeating: The first priority of any government is to guarantee that the Price System reflects the actual value of everything. 

Los Angeles Has Corrupted the Price System for Housing. 

The Price System for housing in Los Angeles has been destroyed by massive corruptionism. 

Everywhere people are talking and writing about Los Angeles’ high housing prices with no knowledge why our housing prices are so much higher than elsewhere. It is not due to increased demand for housing. Since our modest population increase comes from our birth rate rather than people moving to LA, the demand for housing is either stagnate or dropping. In fact, LA has a net exodus. The Family Millennials in particular are leaving. Babies do not rent new apartments, but every person who leaves LA for Austin Texas leaves a vacancy. 

The City Intentionally Spreads False Information about Housing. 

Because of constant disinformation from City Hall, people falsely believe that the demand for housing is increasing. A shortage does not mean an increased demand. Because our mayor, Eric Garcetti, has destroyed over 22,000 rent-controlled units, there has been a dramatic drop in supply. A reduction in supply means the same number of people are bidding against fewer units and that forces up prices. 

In fact, the unlawful eviction of poor people – something at which judges like LA Superior Court Judge Deborah Christian excel, raises the average rent. As soon as the old tenant has been unlawfully evicted, then the landlord raises the rent. There has been no increase in demand – only an unlawful eviction. 

Los Angeles’ poor people are involved in a different housing market than the middle and upper middle classes. The long-term financial health of a city, including its ability to provide for the poor, depends on a vibrant middle class. When massive fraud and financial manipulations from a corrupt city hall artificially raise all housing prices, the middle class moves away from LA. 

As Keynesian economics shows, material misinformation in the housing market can cause the entire economy to crash. Of course, we do not need Keynes to verify this fact since Corruptionism in housing is what crashed the economy in 2008. Nonetheless, there have been no reforms and similar distortions in the Price System for the housing market are killing Los Angeles.

How LA’s Temple to Crimogenics Drives up Housing Costs. 

Residential housing should be based on its value as Living Space. Once zoning is destroyed, residential housing in Los Angeles is not based on its value for raising a family. About 80% of the nation’s population prefers a detached home with a yard for their families. Thus, any city which adopts the New Urbanism, with its war on the single family home, is telling 80% of the new middle class that it is not wanted. 

“Corruptionism,” which has infested Los Angeles City Hall since at least 2001 when Eric Garcetti was first elected councilmember for District 13, has destroyed the Price System for residential housing. Because any developer can buy or bribe whatever zoning he wants, the value of homes then becomes their Speculative Value. 

Housing Prices should be Based on the Value as Living Space and not on the Value of Speculative Redevelopment. 

California and Los Angeles have laws which intentionally destroy the Price System for residential properties. One of them is allowing Granny Flats. Any developer can buy a house and turn it into a commercial enterprise by building a second house in the backyard and then renting out both houses. Then, he buys another house in a single family area and builds another Granny Flat and rents out both houses. It may take a few years, but eventually an owner-occupied single family neighborhood becomes an area of multi-family renters with absentee landlords. 

Into this deteriorated and demoralized neighborhood comes a developer. He buys or pays bribes to get an up-zoning to a 4-plex; another developer then buys or bribes to get an up-zoning to multi-family apartments along, say along Magnolia. Now there’s a 4-story apartment overlooking a single family neighborhood. 

The Key to Los Angeles’s High Residential Prices is: Residential properties cost an arm and a leg because their prices are set by the lands’ Speculative Value and not by its value as Living Space. 

To aggravate matters, home buyers know that the day after they buy their dream home for three times its actual worth, a series of Granny Flats can be constructed or a gaggle of “single family homes” will be build next door because the developer chanted the magic words: “Small Lot Subdivision.” Small Lot Subdivision means the developer can build six or more small homes on one lot with eight inches between them next to your newly purchased single family home. The eight inches between these de facto apartments allows them to be fictitiously treated as if they were detached homes and not apartments or condos in a neighborhood of single family homes. 

Keynes Opposes a Stimulus as the Business Cycle Moves into the Boom Phase. 

People think that Keynes says to spend money to stimulate the economy. This belief is false. Just because a doctor prescribes chemotherapy to treat cancer does not mean he prescribes it for pneumonia. When an economy suffers from a decimated Price System and it is entering the Boom Phase of the business cycle, Keynes does not recommend a stimulus. Yet, that is exactly what the Garcetti Administration is doing. There is probably no greater fiscal error than dumping billions of tax dollars into an economy whose Price System is wracked with fraud. 

Keynesian Steps to Fix Los Angeles’s Economy: 

  1. Down-zoning. The Los Angeles Basin needs to de-densify. Thus, the Basin needs drastic down-zoning. This need is particularly strong in Hollywood. No more offices should be constructed on Bunker Hill or elsewhere in DTLA. 
  1. Get rid of Granny Flats. They are a dagger into the Price System for Los Angeles residential housing. 
  1. Get rid of AB 1818. This is a foolish state law. Los Angeles should down-zone everything as much as possible so that when a developer tries to up-zone density by 35%, he will be at a livable level for Los Angeles. 
  1. Abolish all Small Lot Subdivisions. 
  1. Modify the Anti-Mansionization ordinance so that larger homes can be constructed and older homes can be upgraded, but only in strict compliance with the nature of quality of the neighborhood. I would call them quasi-HPOZs. The “palaces” that loom over their neighbors’ homes and yards are unacceptable and unnecessary. 
  1. End the vote trading pact at City Hall since it is criminal under Penal Code § 86. No city should be governed by a feudal criminal conspiracy no matter how much Judge Richard Fruins loves the idea. 
  1. Never allow any CRA or EIFD type district for any reason. Simply put, they are vehicles to steal money from City Hall and give it to billionaires. 
  1. Prohibition on City investing in any private project. Although Eric Garcetti loves the Chinese model where the government is the developer, that arrangement is verboten under Keynes. The City should never invest in a private project. It destroys the relationship between the marginal efficiency of capital and the rate of interest. This only results in bad projects being constructed and money being misdirected away from better uses.

 

(Richard Lee Abrams is a Los Angeles attorney. He can be reached at: [email protected]. Abrams views are his own and do not necessarily reflect the views of CityWatch.) Edited for CityWatch by Linda Abrams.

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