Forced to lay off virtually every city worker, Maywood says it may be a business model for tough times

Maywood city leaders said their decision to confront fiscal and insurance problems by laying off virtually every city employee and disbanding its Police Department could serve as a business model for other struggling cities.

Maywood has asked neighboring Bell to take over its day-to-day municipal operations.

"Many cities across the country are following Maywood's action closely," said Maywood Mayor Ana Rosa Rizo. "In light of decreased municipal money from the state and federal government, small and large cities across the country are looking for innovative and cost effective strategies."

Though Maywood's finances were strained, the final blow was the loss of the city's insurance.

Recently, the city of Bellflower declared a state of fiscal emergency and placed a temporary revenue measure on the November ballot. The city is operating at a $1.4-million deficit.

In the Bay Area, the city of San Carlos is considering dismantling its police department and outsourcing police services.

"We've already received inquiries from different entities saying what is Maywood doing? Why are you doing this?" Maywood Councilman Felipe Aguirre said.

Last month Maywood's insurer said the city's general liability and workers' compensation would be canceled effective July 1. The insurance agency, the California Joint Powers Insurance Authority, said excessive lawsuits filed against Maywood's Police Department and the council's failure to meet a set of conditions that included hiring a city manager and approving a police contract with its neighbor Cudahy, were among the reasons for the cancellation.

Officials contend that since 2006, liability claims against the city have dropped from $12 million to $260,000. Additionally, city leaders said they tried to hired a city manager, but either the candidates turned down the job or were scared off by residents who warned the candidates of the city's politics and  history of corruption, said Angela Spaccia, the interim city manager.

The Maywood City Council last week unanimously approved a plan to dismantle the 86-year-old Police Department and begin contracting law enforcement services with the Los Angeles County Sheriff's Department. The contract will cost $3.6 million a year, according to city and sheriff officials. Until recently, the cost of operating its own police department has been estimated at $7.8 million a year.

"Because of the many different problems we inherited, we took an opportunity and made a bold step," Aguirre said. "It's a big step and a scary step…"

The council also agreed to contract some municipal services with neighboring Bell. Among some of the services provided by Bell are human resources, finance, records management and parks and recreation. Maywood would be billed about $50,833. City leaders say the city would save about $164,375 a year.

Maywood's decision to contract its police and city services will leave 96 police and city employees without jobs. Officials contend some employees will be hired as city contractors. Maywood's police officers will also have the opportunity to apply with the Sheriff's Department, but that process could take months.

--Ruben Vives

Comments

[syscom3]

This is a good idea; concentrating routine day to day operations into one large multi-city agency. No need to have multiple small departments doing the same things when one larger agency can offer economies of scale.

[J.H Brown]

Luis, and the rest of the corrupt council members has created problems, and never tried to find a solution to rest of the problems. The police department should have been canceled years ago. If LA continues on the road it is on with the inept, corrupt Pint Size Mayor, and rubber stamp city council, we will end up the same way. It is just Mexican style politics as a resident in South Gate said. Furthermore, the resident said she thought she had left that kind of politics in Mexico. She was one of the ones that fought to clean house that year, and it was in the Times.

[sophie]

How could this be a viable option for other cities? What if Bell followed the actions as you, Maywood? Then you'd have no one to take over your operations for you.

[BE AN American]

business plan.... lol, what business?

[darrin]

Maywood is an embarrassment. This "sanctuary city" is no role model.

Hopefully the LA Sheriff's Department will uncover the corrupt activity of their new contract city.

[Curren Price]

Business model, lollllllllllllllllll, omg. please tell me she did not say that, lollllllllllllllllllll.

[Joseph Blowe]

Maywood broke? What a surprise. When you claim your city as a "safe haven" for illegal aliens that disable your ability to collect revenue from parking tickets or vehicle violations (not to mention sales tax revenues going south of the border), what kind of city revenue hit do you think you take? And who wants to do business in such a dysfunctional city? Maywood deserves to go down in shame...

[Butkis]

Why don't they just concede and dissolve the city city itself. Let one of the neighboring cities incorporate it or let the county claim it. Or why don't they just file for bankruptcy?

It's just a power trip for the mayor, his counsel and the city manager. They are willing to lay off all there employees but they keep their own jobs. What a bunch of BS! How sad is it that they'll take in and protect illegals, but they won't do nothing for their loyal employees.

The only good thing is that LASD will pick up their police officers and they won't be out of a job and have a better job and opportunities. But the rest of the employees are screwed.

[F.M.]

This is what happens to "sanctuary cities." I'm glad. Good point!

[Tara Murphy]

Mexican Maywood goes down, "not with a bang, but with a whimper".

[RANCE STODDARD]

BUT ISN'T THIS THE CITY THAT PAYS THEIR COUNCIL $100,000 EACH? OTHER LIKE SIZE CITIES PAY ROUGHLY $1,000 PER MONTH FOR THE PART TIME JOB THEY ARE ELECTED TO. IS IT NO WONDER THEY ARE BROKE? SHOULD SOMEONE SUGGEST THEY FIRE THEMSELVES AND RESTRUCTURE HOW THEY ARE PAID? OR COULD THEY EACH TAKE A 90% PAY CUT? THAT WOULD SHOW WHO IS INTERESTED IN "SERVING" THE COMMUNITY.

[R. Castro]

I believe a little insight and a lot of investigation is required. The $12 Million dollars the city of Maywood lost in 2006 due to law suits filed against the city and its police department were mostly fraudulent claims. When Aguirre took office he had friends file claims against the city. In most city's the city attorney reviews claims and decides whether the case is viable; Then takes steps of either proceeding to court or settling. Our City attorney directed by Aguirre by-passed our justice system and paid claims brought forth by the same 6 attorney's over and over again, (check the records for yourself).

The only action the insurance company can take is to deny coverage to a city. At the time the claims are made the insurance company must pay any settlement awarded by the city. It was Aguirre's friends and possibly through kick-backs, Aguirre himself who profited from the suits against the city.

Read the article gain! The city isn't outsourcing because it doesn't have money, It's outsourcing because it can't get insured. The insurance company is trying to cut out the tumor in the city of Maywood to make it insurable. Unfortunately nothing but the Tumor will be left after this move.

My prayers go out to all the good, hard-working, honest city employees who are about to lose their jobs in one of the hardest economic times and I hope they come forward and tell the truth about the corruption.

[Guest]

Buena Park should follow Maywood's lead. The first function area to go must be the Buena Park Police Department. Have you looked at those nasty employees lately.

Bill

[Horray!]

My only question?!? IS WHY did it take this long to make it happen!!! The police department is a disgrace and an embarassement to all Police Officiers. Wearing a uniform takes much more then a bunch of beer belly irrogant idiots wearing them. I once witnessed the Maywood/Cudahy PD enjoying a early morning (1.am. ish) show as a group of young stupid girls coming out of Poteros Night Club giving them a show as they stood there and let these underage girls lift their dresses. IDIOTS! I really hope the same happens to Cudahy. That's another corruption let the deputies come in and clean house.........The streets are no longer safe with all those little punk gangmembers running the street. GET RID OF THEM ALL perhaps send them to war and have them help us with terrosim. Either way putting them away in unsucessful jail system still cost us money. I rather pay for war then jail system where they eat, sleep and play 24/7. Today is a good day and really hope the hard working citizens of both Maywood and Cudahy are able to sleep at night and walk the streets freely.

[Jazz1152]

There is a June 24th news article about Los Angeles County looking into Bell City Council members $100K paycheck for part-time work for a city with the population of 40,000.

They said that the council members should be receiving around $6,000 - $10,000 annually not $100,000.

Their salaries are not the only problem but it makes you wonder what other improprieties they are committing.

[Mike]

Sounds like Obama's perfect 'business' model. Consolidate first with a city, then move on to larger things (one world power is based on consolidation). Then you have outside police trying to police the city, more than likely opening it up to mass corruption, not only in the city but on the streets (crime). If this 'business model' spreads, it will be high time for military policing. Can't wait. Can somebody start cutting the fat instead of the meat already and impeach Obama with his 'credit extending' communistic, no birth-certificate ways?

[O. Lopez]

I agree with the comments by J.H. Brown, the kind of "business as usual" attitude became the same type of politics used in Mexico. When they ran out of money (after paying themselves ridiculous amounts of money) they decided to do the "right thing". I wonder what is it with those people in office that cannot be blinded by corruption.

[Rich L]

Signing the Cudahy contract and hiring a permanent city manager could have saved all these employees and this city. How can the council sit there and deny that fact. This was something that the city council was trying to do for some time.

[Yolanda Martinez]

Isn't this the same city that has an extremely corrupt city council? Didn't the LA Times do a piece on Maywood's cit council's corruption, and how they are stealing millions of dollars from the people of Maywood?

Who lives in Maywood? Are they Americans,with American rights? If they are American citizens and can vote -- RECALL RECALL !!!!!

Voters wake up; you put these criminals in office.

[Mike]

'Forced' to lay off nearly every city worker?? What a joke and complete proof of corruption! Why not have the mayor and a couple buddies take a little pay cut and make up for the 164,ooo dollars and save human resources, finance, records management and parks and recreation? What a waste of space and these 'progressives' need to be shot after a review of their financial situations. But who cares? If you were illegal in a sanctuary city, are you going to question the political leaders that allow you to stay? It is Mexican politics all over again for these poor people and all the way over here! Somehow this is not very surprising. Only very disappointing to see actually come to fruition, like so many of us 'conservative whack jobs' envisioned happening. 'Go corruption' is really what you liberal progressives are saying. Get it straight.

[Sarah]

They might as well declare themselves a state in mexico.

[Rik]

Let the city rot. They are 96% mexican and considering that they would rather not follow the law what is the difference. Not to mention all the city council is mexican and making over 100k per year. They want the responsibility until the money is gone then they want other to donate. HA.

[Denmark]

I'm from California and I used to work in Maywood, I can tell you right now that this move is the direct result of Mexican, and other spanish speaking illegal aliens who have done nothing for that small city but take, take. and take, as soon as they get their pay checks they go right to western union and wire that money to Mexico, where most of them own homes and land. I'm glad this is happening to Maywood they and there residents deserve it. What will happen is that after they destroy Maywood they will take up residence in another city that appears to be doing well and they will repeat the process. I'm glad because this will bring the real problem to the light, and eventually the state of California won't be able to handle the results of illegal immigration and that's when the jig will be up and done. The people of California will say enough is enough. Time to deport all illegal Mexicans and rebuild our State back to what it used to be; fun in the sun.

[Niner]

Maywood fell because of the illegal immigration. they labeled themselves a sanctuary city choosing to ignore the laws of the US. Well good they are getting what they deserve.

[Denmark]

I use to work in Maywood 10 years ago and when I saw all the illegals out there I perdicted this would happen back then, its inevitable, and that gones for any other city that willingly harbor illegal aliens.