CITY POSTPONES SECURITY CONTRACT VOTE.

Byline: Patrick McGreevy Daily News Staff Writer

Los Angeles City Council members Wednesday delayed deciding whether to award part of a $10.6 million contract to a security company headed by a former Los Angeles Police Commission member because union officials say city employees can do the work.

If approved, former Commissioner Enrique Hernandez Jr.'s Inter-Con Security Systems Inc. would share the contract with two other firms to provide guards at Department of Water and Power facilities in Southern California.

However, union representative Julie Butcher said the city already employs its own security guards who could do the work.

``(The contract) is not needed,'' said Butcher, general manager of Service Employees International Union Local 347, which represents city-employed guards.

The council also delayed consideration of a proposal to pay Hernandez's firm $460,000 to settle a lawsuit alleging libel and breach of contract against the city.

The libel case stems from criticism by former city security chief Gonzelo Cureton of the work Inter-Con had done for the city. The breach-of-contract allegation involves a dispute over city payments for security services in earthquake-damaged neighborhoods in the San Fernando Valley.

Housing Department officials said at the time that the ``ghost town'' agreement called for the city to pay for guards at the rate of $12 an hour but that Inter-Con's master security contract required the city to pay only $9 an hour.

Cureton no longer is the city's security chief. He has transferred to head security services for the DWP, which he says is a promotion, not punishment for his criticism of Hernandez.

Cureton said this week that he stands by that criticism.

``Whatever I said, I stand fast with it,'' he said. ``I told the truth. If they don't like it, too bad.''

Under the proposed contract, Cureton would have discretion to use any of the three security firms. One, Elite Security Services Inc., already does the bulk of security work for the DWP, and Cureton said he has no plans to change that, despite any council action.

Some council members, including Rita Walters, said they are concerned about awarding such a lucrative contract without new competitive bidding.

The three firms are being recommended to get the work because they have the city's master contract for security services, which was previously subjected to bidding.