While much of the talk about the city declaring bankruptcy has faded, at least one downtown law firm continues to look at it as a potential source of business.
Latham and Watkins, one of the premier firms in the region, has prepared a 46-page Power Point presentation outlining the possibilities and limits of a city going bankrupt and citing examples of jurisdictions that have gone into and come out of bankruptcy.
Attorneys with the firm met last week with Controller Wendy Greuel. She said she had not requested the meeting and had no comments about what was told her.
The firm’s paper details the legal requirements and what can or cannot be accomplished under bankruptcy.
However, missing from the presentation was the most important point to elected officials – the political fallout.
In nearly all cases where a jurisdiction has declared bankruptcy, its politicians have been voted out of office in the next election.
For some Los Angeles city officials, the troubled transition to Google’s Gmail has not been worth the cost.
With several officials threatening to withhold their support for the complete transition to the system, a number of Google competitors are salivating at the prospect of taking over the Los Angeles city e-mail system.
It is expected to come to a head this week, when the full City Council gets a report on whether Google is willing to pick up what could be hundreds of thousands in extra costs incurred when the city was unable to transfer over completely to Gmail.
Councilmen Paul Koretz, Bernard Parks and Dennis Zine said they will oppose any further dealings with Google unless it picks up the costs associated with running two e-mail systems.
“If this was a car, the company would have given us a warranty and fixed it,” Zine said. “We haven’t even driven this off the lot and it’s broken down and I am not hearing they will help.”
Google officials say they have “all hands on deck” to make the changes needed – primarily by the Los Angeles Police Department – to make sure the system is up by the end of September.
“The city of Los Angeles is one of the first local governments in the country to move (to this system),” said Michelle Herd, a spokeswoman for CSC, the company developing the system. “We will continue to work closely with the city… to ensure the project’s success.”
The difficulties arose in meeting all the security requirements of the LAPD and Department of Justice, officials said.
There is nothing worse for a Democratic group in the city than holding an event where there is labor strife.
Such is the case for the Jewish Labor Committee that was planning to hold its annual Awards Brunch on Aug. 22 at the Century Plaza Hotel, where members of the Hotel and Restaurant Employees, Local 11, are threatening to picket because of problems in negotiations.
“In solidarity and because we know no one could cross their picket lines,” the committee announced it is moving the event to CBS Studio Center in Studio City.
Honorees include Supervisor Mark Ridley-Thomas and Rep. Judy Chu, D-El Monte.
The final nail was driven last week into the coffin of the recall effort of Mayor Antonio Villaraigosa.
Phil Jennerjahn, who is now looking to run for the City Council after unsuccessful efforts in other races, announced last week he was abandoning the effort.
“Recall City Hall currently does not have enough signatures or raised enough money to successfully put Mayor Antonio Villaraigosa on a recall ballot,” Jennerjahn announced on his website.
“The Aug. 18 deadline is approaching and, as of now, we are short of our goals.”
Rick Orlov is a Daily News staff writer. His column, Tipoff, appears Mondays. For a daily fix on politics, visit the Sausage Factory at insidesocal.com/politics. To contact Orlov, call him at 213-978-0390.
Posted on July 26, 2010