David Fleming, Former Chairman, Los Angeles County Economic Development Corporation; Counsel to Latham & Watkins.

Fernando Guerra, Director, Center for the Study of Los Angeles

Russell (Rusty) Hammer, President and CEO, Los Angeles Chamber of Commerce

Richard Katz, Co-Chair, San Fernando Valley Independence Committee; former California State Assemblyman

Larry Kosmot, Founder and President/CEO, Kosmont Companies

Moderator:

James Flanigan, Senior Economics Editor, The Los Angeles Times

Summary:

David Fleming opened this session by stating that the San Fernando Valley and the City of Los Angeles are de facto two separate cities. An exploding population, no convenient way to travel between the two and a growing list of grievances that include low public safety response times and one-tenth the spending on Valley redevelopment as compared to city redevelopment, convince him that a smaller, more committed governing body for what would be the sixth largest city in the United States is necessary. Fleming argues that City residents should favor secession because it would increase state and federal funding to each, giving both more money for infrastructure and services.

Fernando Guerra heartily disagreed. He is not convinced that secession will solve the problems its proponents claim it will and that the great strength of Los Angeles is its position as a regional power. While Guerra does not believe that secession would be a disaster, he concludes that it would not solve the Valley′s problems.

Russell (Rusty) Hammer concurred. Admitting that the secession movement brought many of the city′s problems to light, from a business standpoint he opposes the effort. He noted that increased regulation, increased bureaucracy, increased business costs, potential conflicts and complexities resulting from a split would be bad for businesses and impair creative solutions to regional issues such as air pollution, transportation and water. The answer, he says, is for everyone to roll up their sleeves and work it out.

Richard Katz disagreed, noting that Valley Industry and Commerce Association voted in favor of secession because it believes secession would actually be good for business. He alluded to L.A.′s promise of reform with no results and money earmarked for serving the poor going into the bureaucratic machine. L.A. will not change its ways, he said, and he believes that smaller city units will take greater responsibility for city services. He concluded: The Valley isn′t running away from L.A.; it′s trying to deal with its problems.

Larry Kosmont, a former city manager, stated the issue differently. Cities are simply small services companies, he explained. The real issue is how to provide a better quality of life for its citizens. With or without secession, the problem for cities remains how to raise revenue. In California, other than to raise taxes, the only answer is to stimulate economic development. This raises a whole host of other problems, pitting those who favor maintaining quiet neighborhoods against those who see the need for development to raise money to provide necessary services to residents. Citing a number of obstacles such as the lack of a general plan, zoning code, etc., it is a question, he said, of whether a new Valley City can succeed by being business friendly and provide services.