Internet Dispute Rages
The chairman of the Los Angeles city Information Technology Commission resigned amid a growing dispute over how L.A. residents will receive high-speed access to the Internet.
The move came as city officials are divided over whether to allow open access to such services or to designate a distributor in a system similar to cable television franchising. Mayor Richard Riordan favors a franchising agreement, while departed commission Chairman Alan Arkatov supported open access.
Sources said Arkatov felt pressure from Riordan to change his stance. But others close to Riordan said Arkatov left because he was appointed with the understanding that he would serve just one year.
Lakers Hire Jackson
The Los Angeles Lakers signed Phil Jackson to a five-year, $30 million coaching contract.
Jackson, who coached the Bulls and superstar Michael Jordan to six National Basketball Association championships, will replace interim coach Kurt Rambis. The contract was the most lucrative ever for a Lakers coach.
MPAA Targets Film Ads
Amid growing concern over a possible link between movies and youth violence, the Motion Picture Association of America plans to get tougher on the use of guns and other violent imagery in movie advertising, including TV spots and previews in theaters.
MPAA Chairman Jack Valenti said the policy shift isn’t a legal matter, but part of the movie industry’s program of voluntary self-regulation, which includes the assigning of ratings to films. The MPAA, which is funded by seven major studios, also reviews all advertising material for films submitted to be rated.
MPAA policy already bans ads from showing scenes with weapons held to a person’s head. Some movie marketing executives said they have now been told by the MPAA that the group will begin disallowing many images that show weapons being fired, especially straight at the camera.
County Adopts Living Wage
The Board of Supervisors adopted a so-called living wage ordinance but refused to extend the coverage to 3,000 part-time employees who work directly for the county.
The board patterned the law after a similar ordinance already on the books in the city of Los Angeles. The county law calls for its full-time employees to earn $8.32 with health insurance or $9.46 without. Those wages are generally calculated as the amount required to keep a family of four off welfare.
Officials estimated that as many as 10,000 workers now under contract with the county may see a pay raise as a result of the ordinance.
Mayor Revises LAX Proposal
Facing a lack of political support for a massive expansion of Los Angeles International Airport, Mayor Richard Riordan said he favors a scaled-down plan that would result in less impact on the surrounding community.
Under the proposal, LAX would no longer add a fifth runway and would instead relocate its northernmost runway and lengthen it slightly. The move would allow for a modest increase in flights as well as make it possible to accommodate larger planes.
Cost estimates for the original expansion ranged up to $12 billion. But Riordan said the revised plan would save $360 million in land acquisition and even more on construction while reducing the number of businesses that would have to be relocated from 383 to 247.
The revised plan was developed in part by outgoing Airport Director Jack Driscoll, and also by Lydia H. Kennard, who was named last week to succeed Driscoll after supervising the expansion program for the past year.
Philharmonic Executive Resigns
Willem Wijnbergen resigned as executive vice president and managing director of the Los Angeles Philharmonic Orchestra after just 15 months in the post.
Orchestra officials would only say that Wijnbergen is leaving for personal reasons, although it appears that his departure is the result of a failed negotiating tactic. Wijnbergen himself said he sent a letter to the board before his departure for his native Holland saying he had “serious issues” with his contract, and saying he would resign if those issues weren’t addressed. He said he was surprised when the board later announced he had resigned.
Wijnbergen was hired after a two-year search to replace Ernest Fleischmann, the Philharmonic’s director for 28 years, who resigned in 1997.
Global Halts Bidding
Global Crossing Inc. said it doesn’t immediately plan to raise its bid for U.S. West Inc. and Frontier Corp. after its effort to acquire the two telephone companies was challenged by Qwest Communications International Inc.
Global Crossing, an undersea cable operator with executive offices in Beverly Hills, and Denver-based Qwest both want to buy the firms as part of a move to create a telecommunications giant.
Global has offered stock worth a total of about $44 billion for U.S. West and Frontier. Some analysts believe Global could prevail in the close bidding because it has merger agreements with both firms.
Qwest has offered a total of about $42 billion for the two companies.
The stock prices of both Global and Qwest have plummeted since they made their bids.
Litton Settlement Reported
Litton Industries Inc. has reportedly agreed to pay millions of dollars in penalties to settle a long-running federal criminal probe of whether the military contractor made improper payments to foreign consultants.
In a recent filing with the Securities and Exchange Commission, Litton said the six-year investigation has focused on payments to foreign consultants and the reporting of those payments to the U.S. government in connection with sales to Taiwan, Greece and possibly South Korea,
Few details were available about the agreement with the U.S. Attorney’s Office in Los Angeles. A spokesman for Litton declined to comment except to say that the firm was in discussions with the government.
Pollution Rules Target Ports
Air quality regulators approved new measures to reduce potentially hazardous emissions of petroleum coke and sulfur at industrial sites at the ports of Los Angeles and Long Beach.
The decision by the Air Quality Management District could cost businesses as much as $65 million to implement. The rules focus primarily on petroleum coke. Fine particles of the material can aggravate respiratory illness such as asthma and emphysema.
Among other things, the regulations require cargo terminals and companies that handle petroleum coke to enclose conveyors, loading facilities and storage areas. In addition, trucks that carry the material must be covered.
Glucose Monitor Approved
MiniMed Inc. received federal approval for a revolutionary system designed to provide continuous glucose monitoring for people with diabetes.
The action by the Food and Drug Administration allows the Sylmar-based company to begin commercial distribution of the device that will give diabetics the most precise way yet of monitoring their blood sugar levels.
MiniMed officials have said the first monitors would be made available only to doctors and dispensed to the public through prescriptions. Eventually, the monitors are expected to be available at drug stores for about $12 each.
Compiled by Danny Pollock
