Council Backs Report Critical of Secession

The Los Angeles City Council on Wednesday approved a report that concludes that municipal breakup would financially harm a new San Fernando Valley city and the remainder of Los Angeles.

By formally accepting the findings contained in the 925-page report, the City Council for the first time staked out a hard position challenging the viability of Valley cityhood.

After the vote, the report was sent to the Local Agency Formation Commission, which will decide whether to put the cityhood issue on the November 2002 ballot.

According to Councilwoman Cindy Miscikowski, the city report seeks revision of a LAFCO study that found a new Valley city could operate at a surplus without harming the remainder of Los Angeles.

“What they must do, under law, is make sure that anything that they put before voters is clear, is comprehensive in its fiscal analysis, and it has got to absolutely protect the entire city of Los Angeles,” she said. “We believe that this [LAFCO report] hasn’t yet done that.”

Special Assistant City Atty. Fred Merkin said the LAFCO study, along with proposals by Valley VOTE, the main secession group, includes assumptions that are not legal. He said LAFCO has no power to set water and electric rates or to force the reorganization of the Los Angeles Department of Water and Power to share control with the Valley.

“There are certain legal issues that we think present impediments to implementation of the plan as written,” Merkin told the council Wednesday.

The Valley cityhood proposal significantly underestimates the cost to the new city and what is left of Los Angeles, according to William Fujioka, the city’s top analyst.

“The financial structure will result in a deficit which will have service-level consequences,” Fujioka said.

Councilman Hal Bernson of Granada Hills and Valley VOTE President Jeff Brain warned the council that adopting a negative approach to secession will have political consequences.

Bernson, a member of LAFCO, said the city report would not be likely to keep the issue off the ballot--although a lawsuit might--but could anger voters in the Valley and breakaway communities of Hollywood and the harbor area.

“Frankly, I think the attitude the city has taken doesn’t do anything to keep the city together,” Bernson said. “I think it has pretty much cast the bacon into the fire with fighting words. I would hope there would be a little different approach.”

Other council members said the city has an obligation to present the facts so voters know what the negative impact will be of breaking up Los Angeles.

“In no way should we set up a vote and then have [data] gaps, things that are not thought out,” said Councilman Nick Pacheco.