Hahn Bans Panelists From Contractor Talks

Three weeks after the city controller criticized the Airport Commission for allowing its members to sit in on initial interviews with potential contractors, Los Angeles Mayor James K. Hahn ordered a citywide ban on the practice.

Hahn issued his directive on the eve of a City Council hearing to discuss the findings of City Controller Laura Chick’s audit of the airport department and to consider reforms in the city’s contracting system.

Chick’s audit, released Dec. 15, criticized Los Angeles World Airports for poor business practices, including its habit of allowing commissioners to participate in the evaluation and recommendation of contracts before they go to the full commission for approval.

She also asked local, state and federal authorities to investigate potential illegal acts she found while conducting the audit. Chick declined to elaborate on what the acts were or who was involved.

The mayor said at the time of the audit’s release that he did not think his airport commissioners had done anything wrong, saying that “proper procedures have been followed.”

On Monday, he said steps must be taken to protect the integrity of Los Angeles’ system of citizen oversight of city departments.

Hahn told the city’s more than 300 commissioners that they will continue to play an important role in approving contracts, but they must wait for contract recommendations to reach the full commission.

Chick praised Hahn’s action Monday as “a first step in making real and significant change.” A statement by her office said the audit showed that when airport commissioners got involved in the early evaluation of bidders, “clear and transparent documentation was consistently absent.”

Council members Cindy Miscikowski and Wendy Greuel also praised the mayor for acting quickly, but emphasized that they would like the council to go further.

“He has issued an executive directive, which is a policy order. We need to make it a law,” Miscikowski said.

Councilman Bernard C. Parks praised the mayor’s order, but said it was “unfortunate that it had to come well after” several council members, including himself and Chick, had called for reforms. Chick said she investigated the contracting practices after hearing rumors of a “pay-to-play” environment in which contractors make contributions to political campaigns in exchange for favorable treatment.

In response, Miscikowski and Greuel co-authored the motion, to be considered today, seeking to reform the contracting process. Their motion also proposes to ban city commissioners from engaging in political fundraising.

The council has rejected previous efforts to ban fundraising by commissioners, which is a common practice at City Hall.

Miscikowski acknowledged Monday that she and her husband, Community Redevelopment Agency Commissioner Doug Ring, hosted a fundraiser for Hahn in June. An executive with a firm that does business with the agency also helped organize the event.

The councilwoman said Monday that her husband’s fundraising activity was legal at the time and that she does not see anything contradictory about her move to ban the practice.

“It’s time for a change,” she said. “There has been a practice and policy in the past, but it’s time to review the whole issue to see if it makes sense.”

Ring said he supports his wife’s proposal. “It is clear to me that [fundraising] creates at least the appearance of impropriety,” he said.

Ring said Monday that he probably should not have co-hosted an event with the head of Forest City Development.

Although several Forest City officials made donations to Hahn, the commissioner said political contributions do not play a role in his decision-making.

“Had I thought about it before, I would not have done it,” Ring said.