Parking Lot Deal for Port Is Rescinded

After a closed-door meeting laced with allegations of racism and political influence-peddling, the Los Angeles City Council voted 11-2 Wednesday to rescind a recently awarded contract to run parking lots at the city’s port, and ordered the Harbor Commission to review the three finalists and select again.

The move marked the third time in recent months that the council has used its power to overturn actions by one of the city’s more than 40 citizen commissions--a tactic rarely invoked previously, particularly for such routine matters as awarding contracts.

Councilwoman Ruth Galanter, who chairs the committee that oversees the harbor and led the move to undo the contract, said she had serious questions about the integrity of the process because the Harbor Commission made its choice in closed session and went against the recommendations of its staff. The council action asks the staff to provide more information about all three firms to the commissioners.

“Everybody knows now, the Harbor Commission and the staff, that there have been questions,” Galanter said. “So when they do whatever they do, this time they better do it right.”

The commission last month voted to give the $1.5-million contract to Parking Co. of America, ousting the incumbent firm, Five Star Parking, and the firm ranked first by harbor staff, Parking Concepts Inc. PCI’s proposal promised to bring the most money to the city, but commissioners rejected PCI in part because of problems the firm had while running parking facilities at Los Angeles International Airport.

More than 30 PCI parking lot cashiers were arrested in 1988 on suspicion of embezzling millions from airport coffers, and six were convicted. Though police and airport officials have said PCI managers cooperated with their investigation and helped catch the thieves, some at City Hall believe the incident still mars the company’s credibility.

Since the council voted to review the contract award, there has been an intense political duel between Parking Concepts Inc. and Parking Co. of America, both of which have well-connected lobbyists. PCA’s general counsel, the son of the company’s owner, was recently appointed to the city’s Civil Service Commission.

“Everyone knows somebody here,” Galanter said. “This is one of the pitfalls.”

Officials from Five Star Parking could not be reached for comment Wednesday. But representatives of PCA and PCI praised the council action--and expressed confidence that they would win the contract.

“I think it’s going to come out the same as it did before. I think now staff will recommend us,” said PCA’s Alex Chaves Sr. “We’re a better company than both.”

But Howard Sunkin, a lobbyist for PCI, said, “It’s clear that the council was not comfortable with the selection of the Harbor Commission. It’s clear that the staff recommendation is what should move forward.”

Voting against the move to rescind the contract were council members Richard Alatorre and Mike Hernandez. Hernandez said he thought the decision was tinged with anti-Latino bias.

“I’m sure they would let Alex Chaves park cars. I’m not sure they want to let him own a company that runs parking lots,” Hernandez said. “I found the commission did nothing wrong.”

Harbor Commission President Leland Wong said he would be glad to follow the council’s order and review the bids again, but doubted that the results would change.

“We had all the information at the time to make the kind of decision we made,” Wong said. “If we do everything with the same information that we have, I don’t think the decision would be any different.”

But one council member who spoke on the condition of anonymity said the unwritten message of Wednesday’s vote was that the contract should go to PCI. During the closed session, the lawmaker said, the council majority hinted that if PCI is not chosen, the decision will be questioned again.