HAHN PLANS OWN CONTRACTING REVIEW.

Byline: Rick Orlov and Beth Barrett Staff Writers

Nearly three months after questions of contracting impropriety by city commissioners sparked county and federal investigations, Mayor James Hahn announced Thursday that he will appoint an independent panel to review practices at the Water and Power, Harbor and Airports departments.

Hahn's announcement represents a hasty reversal of the position he took a week ago when he told the Daily News in an interview that he didn't plan to create such a review panel because of concerns it would interfere with the criminal investigations.

District Attorney Steve Cooley raised those same concerns Thursday when the Daily News informed him of the mayor's decision to create the panel and to appoint University of Southern California law professor Erwin Chemerinsky as its head.

Cooley said he would instruct his lead deputy in the Public Integrity Division to contact Chemerinsky to ``ensure their efforts comport and don't interfere with our ongoing efforts.''

``They might very well discover evidence of criminality or possible criminality,'' Cooley said, adding that guarantees would have to be in place so such information would be reported ``in a timely manner and in such a way that our investigation is not compromised.''

The mayor has defended his commissioners for months, particularly Airport Commission President Ted Stein, whose contracting and fund-raising activities are being scrutinized by officials for possible improprieties, according to sources. Stein has denied any wrongdoing.

In an interview, Hahn said he decided to form the panel because of the persistent questions over contracting practices. He said he will make sure it doesn't interfere with the federal inquiry or the county grand jury investigation.

``We're not doing an investigation,'' Hahn said. ``We are going to be looking at the (airport) audit findings and recommendations and see how we can do things better in the city. I think we ought to make sure we are following the best practices we can.''

Hahn said he has not decided how many members the panel will have, but that he will discuss its makeup with Chemerinsky and ensure that it includes representatives of the city controller and city attorney.

``I don't think it should be too large because we want to resolve this as quickly as we can,'' Hahn said.

City Attorney Rocky Delgadillo declined comment. Delgadillo spokesman Matt Szabo said Hahn did not consult the city attorney about forming the panel.

Chemerinsky said in an interview that he was asked to head the panel by a member of the mayor's staff and advised that Hahn wanted to look toward the future in creating better contracting practices.

Chemerinsky said he would welcome a meeting with prosecutors to ensure that the panel doesn't interfere with any criminal proceedings, but believes public policy issues can be addressed in a parallel fashion.

``There are obviously some serious problems in how large contracts are issued by the proprietary departments. I think the mayor's hope is we come up with some recommendations to improve the process and lessen the possibility of abuse. I think this is an effort on the part of the mayor to be proactive in dealing with a problem.''

Chemerinsky previously chaired one of two City Charter reform commissions - the one whose members were elected, not appointed - and he has been involved in a number of reviews of city operations, including a review of the Los Angeles Police Department after the Rampart Division scandal.

He will not be paid for his work. However, Hahn also intends to hire a consultant for an undetermined amount to analyze contracting procedures at the proprietary departments.

City Controller Laura Chick, whose audit of Los Angeles World Airports, the city's airports department, helped spark the county grand jury investigation, said she had confidence an independent panel could make constructive changes. She said she anticipated that her office will do further reviews of the department, which oversees Ontario, Van Nuys and Palmdale airports as well as Los Angeles International Airport.

Councilwoman Cindy Miscikowski, who has spearheaded reforms and represents the community around LAX, said the mayor's review could be conducted without conflict.

``This is a straightforward look at contracting processes and nothing else,'' Miscikowski said. ``There shouldn't be any conflict. I am glad the mayor is showing a willingness to look at how we can improve our practices.''

Hahn said he wants a report within 60 days.

``Our airports and port are vital to the entire nation's economy and the DWP keeps the lights on for almost 4 million Los Angeles customers,'' Hahn said in his statement announcing the panel. ``The smooth operation of these departments is essential to all of us.

``By using best practices, we will ensure that our city contractors are delivering the highest-quality services at the best possible cost and that the proprietary departments have transparent and consistent contracting policies.''

For the report, Hahn said he wants his reviewers to consider the recommendations made in the controller's December audit of the airports, as well as other studies of the proprietary departments' operations.

A county grand jury has expanded its inquiry to include looks at the involvement of Stein and Leland Wong, a former DWP and airports commissioner, in contracting and fund-raising activities. Wong has not returned phone calls.

Federal authorities used a grand jury last week to subpoena contracting documents from all three proprietary departments.

``We are looking at this endeavor to consolidate the various analyses of the proprietary departments into a single effort that will deliver results,'' Hahn said.

Hahn's call for the review comes as the City Council prepares to expand the city's ethics laws to prohibit commissioners from becoming involved in raising funds for elected city officials or their campaign committees.

Councilwoman Wendy Greuel, who chairs the council's Audits and Governmental Efficiency Committee, said she welcomed the mayor's action, saying it mirrors a report she's requested from the City Administrative Office.

``To some extent, this mirrors what we've put in place, and I look forward to working with the Mayor's Office to ensure we have a transparent process,'' Greuel said.

Rick Orlov, [phone]

rick.orlov(at)dailynews.com