CITY OFFICIALS REJECT CRIES OF SABOTAGE SECESSION REPORT CALLED DRAFT.

Byline: Rick Orlov Staff Writer

Saying their actions were misunderstood, top Los Angeles city officials denied Thursday they are trying to sabotage the study of San Fernando Valley secession.

Mayor Richard Riordan, Councilwoman Cindy Miscikowski and Councilman Mike Feuer insisted that a report on how much city revenue is generated from the Valley was preliminary and should not have sparked the criticism it received from officials of the county Local Agency Formation Commission, which is overseeing the secession study.

But their downplaying the report and denials of intentionally trying to stall and undermine the study were rejected by LAFCO officials.

``We've been asking for this information for months,'' LAFCO executive director Larry Calemine said. ``It's information they are required to give us. We have an obligation to request this information, and they have to provide it.''

Calemine, who has excused numerous delays and incomplete data from the city for months, sharply criticized city officials on Wednesday, saying the revenue report was four months late, incomplete and inaccurate.

Chief Legislative Analyst Ron Deaton, whose staff compiled the report, initially defended and was backed by other city leaders on Thursday.

``What's confusing about this is the Deaton report was never intended for LAFCO,'' said Miscikowski, who chairs the Ad Hoc Committee on Special Reorganization. ``It was developed for the City Council, and they asked for a copy of it. We are still developing the full report they want. They are getting very exercised over an interim report.''

Feuer, who is running for city attorney, expressed concern over the dispute.

``I am not for secession,'' Feuer said. ``But I would be very angry if there was any indication of the city providing wrong information or trying to sabotage this.

``But it seems they are getting upset over something that was not intended for their efforts and is preliminary in nature.''

A spokesman for Riordan also rejected the idea of a city effort to subvert the process.

``We are still gathering information for LAFCO on the sources of revenue, but it is a complicated effort,'' spokesman Ben Austin said. ``Some of the information is confidential and sensitive for certain businesses, and we are trying to figure out how to provide the information without violating any agreements.

``But we also feel it is a little bit disingenuous for LAFCO to sit on the sidelines and complain about the report that wasn't commissioned for them in the first place. They have their own consultants and can be doing some of this work themselves. There is no effort to sabotage their study. The only effort is to get all the facts right and do it as soon as possible.''

The City Council instructed Deaton to collect information on where city revenue is generated after the Daily News reported the Valley got less than its fair share of city services, supplying more in taxes than it got back in services.

The Deaton report, focused only on revenue, found the Valley provided 35 percent of city general fund and special fund revenue - equal to its share of population - but only 31 percent of overall revenue.

Calemine claimed the city used techniques that consistently disadvantaged the secessionist communities and failed to detail some $1.1 billion in revenue, about one-fourth of that generated in the city.

Councilman Hal Bernson, who was involved in an earlier secession movement in the 1970s, said he could not discuss the Deaton report controversy because he serves as the city's representative on LAFCO.

But Councilwoman Laura Chick, a candidate for city controller, said she is concerned over the perception the city was trying to delay the study and undercut the secession effort.

``We have to have a timely and accurate process,'' Chick said. ``It's important for LAFCO and, more importantly, for the public to see that the city is complying and that this information is accurate. It does us no good to provide false information. All of us on the council, particularly those of us from the Valley, want to make sure accurate information is provided.''

Councilman Nate Holden, who is one of the staunchest opponents of secession, said it would hurt the city to provide wrong information.

``We have to have the confidence of the voters,'' Holden said. ``And I've become thoroughly convinced that voters will reject secession once all the information is out there.

``Look at this energy crisis. Where would the Valley be if they didn't have the Department of Water and Power? We don't have to sabotage secession. All we need to do is provide the figures and let people know what they get from the government.''