California state controller to review small city scandalized by officials’ huge salaries

By John Rogers, AP
Tuesday, July 27, 2010

CA fiscal official reviews city in pay scandal

BELL, Calif. — California’s chief fiscal officer arrived in this blue-collar Los Angeles suburb Tuesday to review records after revelations of huge salaries led to the resignation of three administrators and forced City Council pay cuts.

State Controller John Chiang said he was responding to a city request for a review that could last up to six weeks.

If the review discovers anything requiring further investigation, the matter could be referred to the state attorney general and the Los Angeles County district attorney, Chiang said.

Bell’s interim chief administrative officer Pedro Carrillo said he requested an independent audit of city finances by the controller.

Under pressure from furious community members, City Council members on Monday voted to cut their own salaries by 90 percent. Two said they would not seek re-election when their terms end.

Four of the five council members were getting paid about $100,000 for their part-time jobs in the city of 40,000 people. The city manager, who made nearly $800,000, resigned last week.

Attorney General Jerry Brown on Monday revealed he had subpoenaed hundreds of city records.

Hundreds of residents packed the community center on Monday to assail council members who listened to more than five hours of public comment. Many people demanded the council resign immediately.

“I can never, ever, forgive you,” an emotional Marcelino Ceja shouted at the council members, who sat grim-faced through the noisy public comment. “You need to resign today.”

Vice Mayor Teresa Jacobo was defiant in saying she would not resign and that she would “stand by my people.”

“How dare you try to take a penny more from our pockets,” responded Raquel McLafferty, an 11-year-resident of Bell. “Do the city a favor, we don’t want you here and we are not your people.”

Bell’s city manager, police chief and assistant city manager all resigned last week after it was revealed they were making salaries totaling $1.6 million a year.

The six-figure salaries at City Hall have prompted investigations by Brown and the district attorney.

Last week, Mayor Oscar Hernandez defended the salaries of the city manager and other staff as being in line with similar positions in other jurisdictions. He also noted the city had achieved 15 years of balanced budgets.

Brown, a candidate for governor, said he had demanded to see employment contracts within two days to determine whether to file any charges.

The grass-roots Bell Association to Stop the Abuse had threatened to recall the council members if they didn’t resign or slash their own pay.

The salaries burst into public view after a Los Angeles Times investigation, based on California Public Records Act requests, showed the city payroll was bloated with six-figure salaries.

Councilman Lorenzo Velez makes about $8,000 a year, in line with the part-time pay for council members of similar-sized cities.

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