CITY COSTS UNDER SCRUTINY PAYMENTS TO LAWYERS SOAR.

Byline: Rick Orlov Staff Writer

The cost for hiring private attorneys to represent Los Angeles ballooned last year to nearly $30 million, nearly $11 million more than the 2001 total - prompting a call Monday for closer oversight of major contracts.

Records obtained from City Attorney Rocky Delgadillo and the city's proprietary agencies - Airport, Harbor and Water and Power - show dramatic increases in their outside legal costs, Chief Legislative Analyst Ron Deaton and City Administrative Officer Bill Fujioka said.

``I think this shows that the city is spending much, much more than the city attorney acknowledged at first,'' said Councilman Antonio Villaraigosa, who had called for the review.

``My concern, from the start, has been that the left hand didn't know what the right hand was doing when it came to hiring outside counsel. The City Council has to play a more active oversight role.''

Villaraigosa, a candidate for mayor, had questioned the city's use of outside attorneys and whether taxpayers are being overcharged.

In their report, Deaton and Fujioka compiled all costs for private attorneys, including those involved in general litigation, workers' compensation, pensions and attorney-conflict issues, and cases involving the proprietary departments.

When Delgadillo was elected in 2001, taxpayers were paying $18.7 million for outside legal help.

The budget soared in 2003 to $29.6 million, with the largest increase in general litigation, which nearly tripled from $3.7 million to $9.8 million during the reporting period.

``The city attorney reported that the decision to use outside counsel (by proprietary agencies) ... is often made without the city attorney's review and approval,'' the report said, calling for Delgadillo and the City Council to have closer oversight.

Delgadillo said he plans to implement internal procedures to review all requests for private attorneys and also seek greater City Council review for other agencies.

And, through an aide, he defended his office.

``While these costs have gone up each year, the amount the city is paying out in liability has gone down,'' spokeswoman Katie Buckland said. ``In 2001, the liability payouts were $98 million. Last year, it was $46 million. So we think the program is an investment and paying for itself.''

Under current procedures, Delgadillo's office provides regular status reports to the council. But because those reports deal only with payments from the general fund, officials are unaware of the costs involving proprietary departments.

``The council does not have comprehensive overview of total citywide expenditures,'' the report said.

Deaton and Fujioka recommended that the council be advised of all requests to hire outside attorneys.

``Even if they are not subject to council approval,'' the officials said, the actions should be open to council override. The only exemptions would be for the Ethics Commission and various retirement boards, which are protected under the City Charter.

If there are no changes, the two officials said, the council could take steps to require that all outside-attorney hiring comes before the council for approval.

Rick Orlov, [phone]

rick.orlov(at)dailynews.com