Riordan’s Friends Aided Secession Bid

The group that wants to lead the breakup of the Los Angeles Unified School District and form a separate city in the San Fernando Valley was rescued from going broke last year with loans from two power brokers known for their close connection to Mayor Richard Riordan, records show.

City Fire Commissioner David Fleming made a $37,500 loan, and a company owned by Police Commissioner Bert Boeckmann lent $25,000 to Valley VOTE last year, helping the group overcome a $64,778 operating deficit, according to the group’s tax filing with the Internal Revenue Service.

The loans are in addition to $26,000 contributed by Fleming and $20,000 given by Boeckmann’s business, Galpin Motors.

The loans have not been repaid. “We intend to pay them back, but there is no rush,” said Valley VOTE President Jeff Brain.

Valley VOTE board members say that the group is no longer experiencing financial problems, even as it expands its original campaign to secede from the city of Los Angeles to also include breaking up the school district.

The tax form covers a year in which the group was struggling to meet expenses and collect enough signatures to trigger a study of Valley cityhood, legally required before any vote can be scheduled. Fund-raising was more difficult before the petitions were collected and qualified earlier this year, said Bruce Bialosky, who was the group’s treasurer last year.

Officials of the group said the 1998 tax filing should not be taken as an indication of Valley VOTE’s financial health. The group has raised more than $500,000 as it prepares to monitor the study of cityhood, and gets involved in seeking a breakup of the school district.

Fleming, a Studio City attorney, said he is not concerned that Valley VOTE has not repaid his loan, which charges 5% interest.

“We’re not going to be destitute if we are not paid back right away,” Fleming said.

Fleming and Boeckmann are appointed by the mayor, who strongly opposes cityhood for the San Fernando Valley.

Still, Riordan continues to count Fleming and Boeckmann as allies in a broader sense.

“While the mayor doesn’t support secession and despite this difference of opinion, they continue to work hard together for the good of the city,” said mayoral spokeswoman Jessica Copen.

Valley VOTE is now attempting to position itself at the forefront of the Los Angeles Unified School District breakup. The school board majority backed by Riordan in spring elections has begun exercising its power in replacing city schools Supt. Ruben Zacarias.

“We just elected a new school board,” Copen said. “We need to give them an opportunity to fix the system.”

Brain said Boeckmann and Fleming made the loans knowing they might not be paid back.

The IRS and a file with the state office of charitable trusts do not disclose those who donated to the petition drive last year. The tax filing does provide a detailed breakdown of expenses, including $1,342 spent on T-shirts.

The majority of expenses, about $284,000, went to the petition drive, including $234,844 for circulation expenses and $11,000 for signature validation and verification.

Valley VOTE paid $7,380 in legal fees last year, $3,135 for education, $6,000 for advertising and $3,855 on travel.