RISK PROPOSAL RAISES QUESTIONS.

Byline: KERRY CAVANAUGH Staff Writer

Councilman Dennis Zine and City Attorney Rocky Delgadillo proposed Tuesday creating a risk-management team as a way to protect Los Angeles from expensive legal action, like the recently vetoed $2.7 million payout for a black firefighter who sued after his colleagues fed him dog food.

``We don't have a centralized process for follow-up and prevention,'' Zine said. ``The issue is prevention. We really haven't done a strong effort to protect tax dollars when it comes to liability.''

But other city leaders questioned the need for the office, which would audit departments and evaluate the potential for legal liability.

The city controller already audits departments, and the City Administrative Office already has a risk-management division that is supposed to help the City Attorney's Office monitor claims and develop strategies to avert lawsuits.

Mayor Antonio Villaraigosa said he welcomes Delgadillo's effort to reduce large legal settlements, but spokesman Matt Szabo said, ``The responsibility for risk management must be dealt with on a broader, citywide scale, beyond the scope of the City Attorney's Office.''

Councilman Bernard Parks said risk management should be among the duties of every department head, plus there is already a division in the CAO's Office.

``What is the City Administrative Office not doing that it is funded to be doing?'' asked Parks, who heads the council's Budget and Finance Committee.

Controller Laura Chick said the city has done a poor job of managing and averting potential lawsuits, and her office plans to evaluate how the city manages its legal risks.

``I'm not interested in creating another layer of bureaucracy,'' she said. ``We need to analyze what's wrong with what we're doing now and fix it.''

But Councilwoman Wendy Greuel said she supports Zine's request for a better way to head off lawsuits.

For the last five years, the council has refused Delgadillo's request for money to create a risk-management division.

Zine said a risk-management team should have the authority to order general managers to correct problems that could lead to lawsuits. Currently, only the mayor can direct the general managers' actions.

``The mayor's staff isn't able to go in with a preventative program,'' Zine said. ``We need a risk-management unit that can go in, follow up and make sure those changes are made.''

Delgadillo estimated it would cost about $400,000 to hire a chief administrative assistant, three deputy city attorneys and three coordinators to run a risk-management division for six months, the remainder of the current fiscal year.

He now has deputy city attorneys who advise city departments. However, they don't have the authority to investigate or identify potential liability problems.

``It's passive now; they come to us,'' Delgadillo said. ``We'd like to get in there and see where things are awry that they might not be telling us about.''

kerry.cavanaugh(at)dailynews.com

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