Council OKs Parking Fine Contract Over Charges of Favoritism : City Hall: Nate Holden says other members gave in to heavy lobbying by company. They say he cost city $500,000 by tying up proposal in committee.

After months of delay, the Los Angeles City Council on Wednesday awarded a hotly contested contract to Lockheed Information Management Services Co. for the processing and collection of parking tickets

Councilman Nate Holden, the lone dissenter in the 10-1 vote, said the five-year, $49-million award was “one of the most wired deals to come before the City Council.”

Holden said fellow council members were heavily lobbied and accused them of overlooking business ties between Lockheed Corp., the parent company of Lockheed IMS., and South Africa. He said city transportation officials did not give two other companies competing for the contract “a fair shake.”

But other council members said they found “no substance” to Holden’s contentions. They accused him of costing the city more than $500,000 by taking seven months to act on the contract award when it was before his transportation committee.

Lockheed IMS held the previous five-year contract, which expired in October. Between 1985 and 1990, parking ticket revenues increased from $23 million to $100 million, according to city Parking Administrator Robert R. Yates, who noted that 4.1 million tickets were issued in 1990.

“Lockheed has done a good job,” Councilman Zev Yaroslavsky said.

Since October, the city has been paying Lockheed IMS under the terms of its old contract while the award of a new contract was pending, said Department of Transportation Manager S.E. Rowe. The difference between the two has cost the city an extra $80,000 a month, he said.

In August, transportation officials selected Lockheed IMS as “clearly superior” over competitors Tixon Corp. and a joint venture headed by Andersen Consulting, both of whom submitted lower bids. But officials found Lockheed IMS had “proven experience and expertise.”

After competitors raised objections, the city administrative office conducted a review of the proposals and reaffirmed the choice of Lockheed IMS.

Andersen dropped out of the bidding after the city administrative office found that the company had business ties to South Africa. The same office and the city attorney found Lockheed was not doing business in South Africa.

Holden said city staffers did not fully investigate the matter. He said Lockheed’s sale of airplanes to a South African company in the 1970s obligated the company to continue to supply spare parts. But various Lockheed officials have testified that the company has no business dealings in South Africa.

Councilman Marvin Braude bristled at Holden’s accusations, saying that “to attack members of the council for abandoning the South African ordinance is just unfair and inappropriate.” Pointing to various city officials in the room, he added: “All these people aren’t lying, Mr. Holden. . . .”

Holden promised that he would continue to research the matter despite the council vote. “This is dirty and I’m going to prove it,” he said.

Lockheed IMS Senior Vice President Julie Sgarzi said Holden’s accusations were false and “insulting.” “Every time the facts were put on the table we’ve been vindicated.”

Holden accused transportation officials of favoring Lockheed IMS and Parking Administrator Yates, who oversees Lockheed IMS contract performance, of being “very friendly with Lockheed. . . . All you have to do is review his conflict-of-interest statements through 1989.”

These records, on file at City Hall, show Yates listed $1,188 in gifts from Lockheed IMS for lunches, dinners, golf games and Hollywood Bowl tickets between 1986 and 1989. His most recent statement for 1990 listed no gifts.

Yaroslavsky defended Yates, saying: “It’s one thing to question his judgment about going to lunch with somebody. It’s another to impugn his integrity. I’ve never had any reason to question his personal or professional integrity.” Yates had no comment.

Last year, The Times reported that $226.6 million in fines had gone uncollected in Los Angeles, a figure that Mayor Tom Bradley termed a potential “jackpot” for the financially troubled city.

Yates said uncollected tickets now total $242 million, of which $115.3 million is deemed uncollectable, due to inaccurate state records of drivers’ addresses and other problems.

Computer records show that Lockheed officials have donated $73,730 to city and county elected officials between 1984 and 1989, including more than $4,000 to council members. Holden received $1,000 in 1988.