SPARKS FLY OVER RAMPART COST.

Byline: Rick Orlov Staff Writer

Mayor Richard Riordan's office and the City Council clashed sharply Wednesday over how to pay hundreds of millions of dollars the city could owe from judgments and settlements arising from the L.A. police corruption scandal.

The council's Budget and Finance Committee urged rejection of the mayor's proposal - to sell $300 million due the city over 25 years as its share of the national tobacco lawsuit case, for about $100 million now.

The panel recommended instead the council take a go-slow approach by immediately setting aside $23 million into a special fund that would be increased over the years. If needed, the city then could issue judgment bonds.

``I'm not sure it's wise to be holding out a large pool of money at the start, particularly since no lawsuits have been filed,'' said Councilman Mike Feuer, the committee chairman. ``We should be cautious and not hamstring the city. It is important to address the issue right now, but we shouldn't be making premature decisions.''

But Deputy Mayor Jennifer Roth said Riordan is concerned that setting aside the money would mean taking it from the general fund and cutting services to the public.

``Putting together the budget this year is going to be a difficult process,'' Roth said. ``And putting this money in reserve would result in a cut in city services, which is an approach the mayor would not support.''

The city expects dozens of lawsuits in the coming months, beyond the 14 already filed, from people who contend they were victims of the Rampart Division's anti-gang CRASH officers, who allegedly abused and framed dozens and possibly hundreds of suspects.

Former Officer Rafael Perez, who has been sentenced to five years in prison on cocaine charges, has told investigators he and other CRASH officers routinely assaulted, planted evidence and lied to win convictions of suspected gang members, and also stole cocaine.

Riordan's tobacco funds proposal would use the money the city anticipates receiving over the next 30 years to raise $91 million immediately, to be set aside for the expected payouts.

But the committee, bolstered by reports from Bill Fujioka, chief legislative analyst and city administrative officer, said it preferred to wait and see what develops.

Fujioka has said he believes the city should maintain some flexibility by setting aside cash now and using judgment bonds - which carry an interest rate of under 5.5 percent - rather than bond the tobacco money, which would carry an interest rate of 6.75 percent.

Under that formula, he said, the city could save $254 million over the next 25 years.

Roth said the mayor - who has indicated he wants to fire Fujioka - was disappointed in his recommendation.

She also bristled at a suggestion that Fujioka come up with proposals to set aside $20 million from next year's budget even before it is released.

``Respectfully, the budget will be released on April 20, as required by the City Charter,'' Roth said. ``Up until then, it is a draft document.''

In a related development, Ted Hunt of the Los Angeles Police Protective League issued an angry demand for an apology from LAPD Deputy Chief Mike Bostic - who headed up the Board of Inquiry that last week said the department suffered from mediocrity. Bostic had said the public ``can no longer trust the integrity of every officer in the LAPD.''

Citing the league's efforts to work with the department on Rampart problems, Hunt said members feel the Bostic comments ``backhands our members by painting a broad brush to describe the integrity of every officer on the LAPD.

``We believed (Rampart) was an isolated incident involving a few rogue officers, and that this is not a department-wide problem,'' Hunt wrote. ``While numerous officers have been assigned to home, CRASH units (have) disbanded and Internal Affairs expanded, not one command officer above the rank of captain has been held accountable for this embarrassing situation.''

Bostic said Wednesday that his remarks are being misconstrued by the union. ``It's unfortunate they want to inflame an already tragic situation,'' Bostic said.

Also on Wednesday, Councilman Nate Holden issued a call for Police Chief Bernard C. Parks to make sure actions are taken against any officer involved in the corruption before the statute of limitations runs out.

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