Belmont Probe Completed
An investigative audit of the troubled Belmont Learning Complex called for disciplinary action, including dismissal, for nine L.A. school district officials for failure to supervise construction of the $200 million project.
The report also said former school boards violated state law by approving the project west of downtown without adequate environmental review.
The 200-page investigative summary was delivered to the school board last week by district auditor Don Mullinax. Board members gave no indication of how quickly they would respond to recommendations in the audit, which was ordered after explosive methane and toxic chemicals were found throughout the 35-acre Belmont site.
No immediate discipline was recommended for Superintendent Ruben Zacarias, who was deputy superintendent when the Belmont project was started. But the report said his “failure to supervise (the project) in a diligent, professional and effective manner” should be considered during his upcoming evaluation.
Zacarias has denied responsibility for the problems.
UniHealth to Sell Doctor Groups
A shakeout in the managed care industry continued when Burbank-based UniHealth moved to sell six physician organizations, including the giant Huntington Provider Management Services in Pasadena.
Together, the six groups provide health care to 650,000 Southern Californians.
News of the planned sale comes at a time when hundreds of statewide medical groups are experiencing financial troubles. The six UniHealth operations are privately held and unlicensed by the state, so their financial records are not publicly disclosed. However, they have been widely rumored to be struggling financially.
UniHealth has hired San Francisco investment banking firm Cain Bros. to seek buyers for the six groups. UniHealth officials said the planned sale is part of the company’s previously announced mission to become a charitable foundation.
Credit Data Sold to Felon
A San Fernando Valley bank sold a convicted felon 90 percent of the credit card numbers that he allegedly used to run up $45.7 million in mostly bogus charges against consumers worldwide, according to court documents.
Charter Pacific Bank, which has made millions of dollars by processing credit card transactions for adult entertainment firms, provided Kenneth H. Taves of Malibu more than 3.7 million card numbers compiled from merchants’ accounts, the documents state.
Discovery of the sale provided new ammunition for consumer advocates in the intensifying national debate over financial privacy.
Federal and state banking regulators were examining Charter Pacific’s database sales and its handling of merchant accounts. But it was unclear if such sales are illegal.
Charter Pacific said it sells the data files to merchants as a tool for verifying customer card numbers, particularly in online transactions. When a customer submits a credit card, the merchant can then check it against the databases and reject any cards that have a history of misuse.
Small Business Is Booming
An overwhelming majority of small companies in L.A. County are enjoying robust business, but minority-owned companies are trailing white firms in sales growth and have greater concerns about what lies ahead, according to a new poll by the Los Angeles Times.
Nearly three-quarters of the 2,000 small-company owners who responded to the survey said business was brisk, a situation that affirms the region’s broad economic recovery. Only 60 percent of minority entrepreneurs offered that same assessment.
The survey suggests the gap is due to the generally smaller size of minority-owned businesses, and their heavier concentration in inner-city areas and in the low-margin retail sector.
The poll indicated that the recovery has fueled growth at a diverse array of small businesses from toy distributors to multimedia firms. Job creation at such firms has to a certain extent replaced jobs lost at big banks and aerospace corporations.
Companies with fewer than 500 workers account for 99.4 percent of all businesses that pay taxes in L.A. County, and such companies employ 70 percent of the county’s 4 million payroll workers.
Airport Agreement Criticized
Three local congressman are urging federal officials to reject a draft agreement for the new Burbank Airport terminal, saying its continuation of a ban on easterly takeoffs would force more noise on constituents to the west.
The letter was sent to Federal Aviation Administration chief Jane Garvey by Reps. Howard Berman, D-Panorama City, Brad Sherman, D-Sherman Oaks, and Henry Waxman, D-Los Angeles.
They said some residents of their districts have had to endure 100 percent of the noise from departing planes since 1986, when easterly takeoffs were banned by the FAA because of the proximity of the terminal to the runway. Berman argued that safety concerns will be moot after a new terminal is built.
The FAA declined comment on the letter, which was sent several weeks after an agreement involving a new terminal was reached by airport officials and the city of Burbank.
Jon Russell, regional safety chairman with the Air Line Pilots Association, said the Verdugo Mountains to the east of the airport are another reason to ban easterly takeoffs.
Theater Contract Debated
A proposed contract extension for the operators of the Greek Theatre sparked a dispute during a City Hall hearing, as dozens of workers called for its approval while opponents warned a council committee that the action might be illegal.
In addition to Nederlander-Greek Inc., which has operated the popular outdoor venue for 24 years, two other entertainment companies are vying to win the operating contract.
Councilwoman Rita Walters, one of three committee members considering the issue, argued against the extension, criticizing Nederlander for offering to raise salaries for minimum-wage workers in return for receiving a five-year contract extension.
Meanwhile, Councilman Hal Bernson supported the extension, saying the theater needs improvements that Nederlander is in the best position to deliver. Councilman Alex Padilla, the third member of the committee, had not yet taken a position as of late last week.
A final decision was postponed for two weeks while city staff members study the issue.
Hong Kong May Aid Disney
The Hong Kong government may lend Walt Disney Co. as much as $1 billion and take a majority equity stake in a new theme park being proposed there, in exchange for providing land and infrastructure improvements, a person familiar with the plan said.
Such an arrangement could face opposition from lawmakers in Hong Kong because it would be the first such government investment in a private enterprise. If approved, however, Hong Kong would own 55 percent of the park, while Disney would hold 45 percent, the source said.
Taking a minority stake in a new theme park is a strategy Disney followed at its Tokyo and Paris facilities. It would help Disney, which is now struggling with slipping profits, to limit its start-up losses in Hong Kong.
Hong Kong Tourism Commissioner Mike Rowse, the government’s chief negotiator with Disney, declined to comment, as did Disney officials.
(Bloomberg News)
