NC WATCH-City Controller Ron Galperin is rapidly gaining hero status. And, Public Works President, Kevin James is on the same track. Therefore I was somewhat dismayed when James appeared at the Los Angeles Neighborhood Council Coalition (LANCC) and suggested … nicely of course … that the recent Controller’s Audit on the Street Services Bureau (SSB) wasn’t accurate. Or perhaps the things that were not included may have caused Angelenos to get the wrong idea.
Elsewhere in this edition of CityWatch you will find a very thorough article from my colleague Paul Hatfield regarding the same meeting. Hatfield has a strong financial background and his articles criticizing certain City offices of financial malfeasance are well documented.
He Showed Up
One of the advantages to readers of CityWatch is its inclusion of all kinds of opinions … many times on the same subject. James is a straight shooter and in light of the new unexpected “geyser” on Sunset Blvd, as well as the Department of Public Works (DPW) audit disclosures, he would have had a great excuse to cancel his scheduled appearance at LANCC. Instead he delivered a comprehensive analysis of the results of the audit and where he took exception … to a standing-room-only house. Perhaps Police Chief Charlie Beck should take notice!
James said he was well aware of the condition of the streets of Los Angeles. When he ran for Mayor that was one of his biggest campaign issues. He said he took this job because of the challenges but now has to work with the reality of the limitations.
Controller’s Audit
There is a big difference between the Executive Summary and the body of the audit itself. Most people will just read the Executive Summary and not bother to check the details. It doesn’t make clear that the SSB is not a policy making body but implements the policies of the Mayor, City Council and to a certain degree the Board of Public Works. The audit itself did contain some helpful criticism and suggestions, which will be acted upon.
In reviewing the document before it was released, James had asked that the time period of the audit, 2010-2013 be included in the summary because it was based on the prior Administration. It didn’t make it into the Summary but does appear on page 102. Obviously, the public has the erroneous impression that it includes the last year. The other item he wanted in the Summary was a mention that SSB staffing in 2010 was at approximately 1500 employees. At the end of the audit year in 2013 there was about a 40% reduction. Although pavement goals had been met each subsequent year the audit failed to mention it was done with much less staff.
Where is 21 million Dollars?
There seems to be a disconnect between the Department of Public Works and the Controller. Headlines have accused the DPW of giving twenty-one million dollars of their budget money back to the general fund. In reality the CAO asked for it back for various reasons. James has asked for a breakdown as to where the 21 million was spent.
He pointed out that economics dictates how we fix our streets. The public asks “Why do you pave a street every five years and yet one close by never gets paved?” Streets are graded A-F. ABC streets can be maintained at twenty-five thousand dollars per mile per month. Once a road is graded at D or F the cost goes to a million and half dollars a month. So the Bureau can maintain 40 miles of ABC roads to one mile of DF grade. The entire policy of how streets get maintained has to be reviewed. That is a policy decision.
Asphalt Plants
The question of contracting out the manufacturing of asphalt to fix the streets as opposed to keeping the two City owned plants functioning have also been a matter of controversy. The audit stated that the City could save a lot of money by closing the plants.
James vehemently disagreed. He pointed out that in California today one couldn’t get a permit to open an asphalt plant. This gives a virtual monopoly to the four existing Asphalt manufacturing plants.
One of the frustrating things regarding the City-owned Asphalt plants is for the last 8 years they have been trying to get the last four million dollars of an approved 10 million dollar allocation, released. A study has shown that by finishing the upgrade, the plant will save five million dollars per year. So for eight years there would have been a savings of forty million dollars. SSB doesn’t have the power to get the allocated money but gets the blame for 1940’s technology.
When the City decided to eliminate its tree trimming crew and use outside contractors…the RFP’s included estimates based on prior years. The bids came in at 40-80% higher than estimates in previous years. Said Gavin, “Give me one crew and I can get the costs down because I can compete.” By eliminating the City-owned plants the competitive edge and his leverage in negotiating prices is diminished.
Lack of Technology
Another bad rap was lack of technology. Apparently, the department has been trying to install new technologies for years. They estimated the cost would be 3.5 million dollars. An outside, independent company came to the same conclusion. Year after year the City budget and finance committee turned down technology purchases. James commented that he had a long list of technological upgrades needed to make his department more efficient and productive.
He added, “It’s not easy when you have one of the largest areas of roads and highways in the country.” DPW has been faulted for the accuracy of the data collection. To use an example: how many potholes were actually fixed? He found the data to be better than he expected. He is hoping that with a Mayor who believes in technology, they have a better chance of getting what is needed.
He cautioned that with a 40% reduction in the SSB compared to 2010, forty to sixty per cent of SSB employees would be eligible for retirement in the next five years. More than 60% of SSB employees, at some portion of the day, are working at a higher level. It means that these employees are donating their time to the City because they are not being paid at the level they are operating. Those numbers can be quantified and qualified. He added, “It says something about the employees and the leadership!”
James was complimentary regarding the huge increase in public financial information that Controller Galperin has instituted. DPW wants to be able to have the same level of transparency. They are now meeting with various related departments on a weekly basis…such as the Department of Transportation so they can coordinate projects.
RED HERRINGS
He concluded by saying that “I love this job but it can be very frustrating. We are not going to solve the problem by creating a bunch of red herrings. Galperin said that through this Audit they want to help me do a better job. It doesn’t help me do my job when the entire report is, as television news reported, ‘scathing’. It doesn’t help me to do my job when they create a “190 million dollar left on the table” headline, when SSB doesn’t make the decision. It doesn’t help me to do my job when the dates of the audit are for a prior administration; it doesn’t help me do my job when they neglect to say we are reaching our goals with a forty per cent reduction in staff.”
NC’s Weigh In At LANCC
A couple of weeks ago I wrote about some of the things that Neighborhood Councils (NC’s) were supposed to do under the City Charter. One of the important resolutions was advising City government. At the end of the LANCC meeting, a motion was made to have the NC’s form a “memorandum of understanding” (MOU) committee similar to what they did with the Department of Water and Power.
The committee would work with the DPW on issues to do with streets, roads maintenance, tree trimming etc. This way the NC’s would have a seat at the table and be able to really give advice. It passed overwhelmingly with many people volunteering to be on the committee. This is a step in the right direction!
Perhaps the Audit will prove a blessing in disguise for the Department of Public Works because it focuses on some of its limitations-not of its own doing. As they say in politics…”Everyone greases a squeaky wheel.” The attention is not all bad.
As always your comments are welcome.
(Denyse Selesnick is a contributor to CityWatch covering activities, policies and foibles in NC Land. She is Co-Chair, Program Committee for the LA Neighborhood Congress to be held September 20 at City Hall, and a former officer and Board member of the Tarzana Neighborhood Council. She can be reached at [email protected])
-cw
CityWatch
Vol 12 Issue 63
Pub: Aug 5, 2014
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