Secrecy and Waste in the County Budget Process

Recent stories of mismanagement at Marina del Rey provide another illustration of Los Angeles County government’s wastefulness and its domination by a handful of big campaign contributors.

In his three-part series, Times reporter Jeffrey L. Rabin told how the supervisors have leased Marina land for hotels, apartments, condos, restaurants and boat slips to politically influential developers at prices so low you’d think it was the South Bronx.

Real estate expert Fred Case, a retired UCLA professor, examined the value of the Marina for The Times and concluded it was worth $1.4 billion. But all the county netted in profits from leasing this valuable real estate last year was $15.4 million. Given the value of the land, Case said the county leases should have brought in three to five times that amount--between $50 million and $75 million.

You’d think business-minded government efficiency advocates would be upset by all of this. Not so in the case of Supervisor Deane Dana who, as a telephone company executive, was elected to the board in 1980 on a promise to impose business methods on the county Hall of Administration.

Dana, from the county’s coastline district, represents the Marina. He has the most clout in Marina affairs. When he was asked about the the leasing terms, he said, “It’s difficult to run the county like a business.”

So much for campaign promises.

The original leases were signed more than 30 years ago, when the Marina was being developed, and have been renewed periodically. As is often the case with big decisions at the Hall of Administration, this one was worked out behind closed doors by the leaseholders and officials from the county Department of Beaches and Harbors, currently headed by Ted Reed, a genial and obedient servant of Dana and the other supervisors.

The public and press were barred. The matter was kept within the county’s extended family, where the leaseholders are treated as favorite cousins.

From the beginning, the process was compromised by the gifts and campaign contributions given county bureaucrats and supervisors by the Marina leaseholders.

Reed has reported accepting more than $16,000 in gifts since he took over the department six years ago, including memberships in the very nice Marina City Club and the California Yacht Club.

Looking at the big picture, these were just tips, chump change. The big money went to all the supervisors as $508,000 in campaign contributions since 1986.

Dana, Mr. Marina, received the largest share, $188,110. But nobody was forgotten. Even reformer Gloria Molina was on the list, receiving $14,000.

As the ‘80s ended, the supes began suffering from landlord’s remorse. So they hired a couple of outside attorneys, Richard Riordan and Richard Volpert, who negotiated increased rent from major leaseholders.

But that didn’t get to the heart of the problem, the secrecy and misplaced priorities of the county budget process.

The Marina transactions have been conducted off the books, so to speak. That is, there is nothing about the Marina leases in the county budget. The Beaches and Harbors Department keeps that information to itself and The Times had pry it loose with demands made under the Public Records Act.

With public hearings at a minimum, nobody has a chance to ask searching questions about why the supes are giving away the Marina while scrimping on public parks, hospitals, libraries, and lifeguards at the beaches.

The League of Woman Voters, seeing the flaws in the process, has challenged it. Last month, Georganne Thomsen, president of the league in Los Angeles County, told the supervisors, “There is very little provision for meaningful public participation . . . it is discouraging to a citizen who would like to know line-item information.”

Supervisor Molina, a critic of the Marina leases, has proposed that the county put out a much more detailed budget.

That would reform the process, giving the public a chance to participate. If you think your county park, library, sheriff’s station, mental health clinic or hospital is being shortchanged, you’d know where to protest.

Her colleagues haven’t shown much enthusiasm toward Molina’s proposal. And, as expected, the supervisors are ignoring the whole thing.

If you think the League of Women Voters and Molina are on the right track, if you’re upset by the Marina del Rey giveaway, write or phone your supervisor. It’s almost time for the supes to close their doors and begin considering next year’s budget.