City of INDUSTRY >> The city’s first election in 17 years begins Monday with the mailing of ballots, placing the fate of one of the most powerful cities in Los Angeles County into the hands of a little more than 100 registered voters.
Swirling around the all mail-in election is a pitched battle between city staff and former Mayor Dave Perez, which on Friday resulted in the opening of a District Attorney’s probe of payments to companies owned by Perez and his family totaling $326 million over the past 20 years — a potential conflict of interest.
The possibility of improper payments while Perez was mayor was the subject of a city-commissioned audit by KPMG, obtained by this newspaper group, that said the city paid six times more for street sweeping and parking lot maintenance than it pays the current provider.
Despite the serious nature of the allegations, Perez has not commented on the audit, nor the DA probe and instead is letting his candidates do the talking.
A power slate?
The former mayor is backing three challengers running for three seats on the five-member City Council in what some say is an attempt to wield power from behind the scenes. Those three first-time candidates are: Cory Moss, accounting manager at the Industry Hills Expo Center; Mark Radecki, a supervisor for Square Root Golf & Landscape and Newell Ruggles, general manager with Haddick’s Towing.
Ross and Mark Radecki, who is also the city manager’s brother, work for entities owned by or paid for by the city. Haddick’s Towing does business in City of Industry as well as La Puente. Ruggles said he is a member of the Industry Manufacturers Council, a chamber of commerce organization that received $1.3 million in funding from the city in 2011.
“I am running with Cory and Mark. We are running together. But we are not being told what to do by the Perezes,” Ruggles answered. “They will not be running the city through the back door.”
Because the city canceled a maintenance contract held by Perez’s company and is also threatening to void a contract for trash disposal with the Perez-owned Valley Vista Services, Inc., city staff members contend the three will reverse this trend and reward Perez financially if elected.
Moss and Mark Radecki did not return numerous phone calls and emails seeking comment.
Ruggles seemed to speak for all three challengers when he said if the three are the top vote-getters, giving them the majority, they don’t intend to help Perez and his businesses.
“I don’t have any interest in giving them their contract back,” Ruggles said. However, he added that he doesn’t like the way things are run at City Hall. Ruggles said he is supported by Dave Perez and his nephew, Vince Perez, who is an executive with Municipal Maintenance, which did work for the city-owned museum.
“Yeah, Dave Perez is supporting us,” Ruggles said. “He doesn’t like the way things have changed.”
Incumbent John Ferrero, whose father won election in 1957 as the city’s first mayor, chose not to run for re-election, guaranteeing at least one new council member. Current Mayor Tim Spohn and Councilwoman Pat Marcellin are running to keep their seats.
Spohn spoke about how he welcomed the election as part of the democratic process and enjoyed meeting the voters. He also said he would cooperate with the DA’s Office. “We are being transparent. I would say we would cooperate in the process. I don’t have anything to hide.”
Marcellin did not return phone calls.
Spohn, Marcellin, Moss and Mark Radecki live in city-owned buildings, which typically charge a fraction of the rent of comparable homes in surrounding communities. Because four of the five candidates live in city-owned housing, it adds another layer to an election in a city that is unlike any other.
Since the city is Spohn and Marcellin’s landlord, a loss of power could send them packing. Some say Spohn is already thinking about moving from his residence. He said the issue has not come up in this election.
Changing the game
Is the June 2 election a game-changer?
Long-time open government advocate Gil Aguirre doesn’t think so.
“It might be historic from the standpoint it is being held. But I think it makes no difference,” Aguirre said. “This election means the players may change but the overall structure won’t change at all.”
A city with hundreds of businesses populated largely by distribution warehouses and a daytime population of 50,000 people should not be governed by 105 voters, many of whom live in city-owned residences. The setup is absurd and demands new governance, Aguirre said.
He suggested lawmakers study a system that gives more voices to property owners and business owners, much like assessment districts in which property owners have a say.
But Raphael Sonenshein, executive director of the Pat Brown Institute of Government at Cal State Los Angeles, said giving votes to businesses may be a quick-fix that does more damage.
“First, they ought to decide what government system works. Who are the stakeholders and can they have some role. But it’s jumping from the frying pan into the fire to say let’s turn businesses into voters,” Sonenshein said.
Both said disincorporating the city and turning it into county unincorporated area would be a bad idea.
“It is a real knotty problem,” Sonenshein said. He warned lawmakers not to attempt a disincorporation, something tried in Vernon, a similar, business-dominated city, that failed.
“Sometimes the alternative (to a city election) is not much better. Being governed by 100 people verses being governed by 10 million people. Those are two extremes, two unpalatable alternatives,” Sonenshein said.
Voters will begin receiving ballots this week. They have until June 2 to fill them out. Ballots postmarked June 2 will be counted up to three days later, said Cecelia Dunlap, acting city clerk.
