Digest

Digest/–“/dt1st/mark2nd USE THIS ITEM AS CAPTION FOR PHOTO: City Councilman Joel Wachs of Studio City announced he will run for mayor of Los Angeles in 2001, the first Valley politician to do so. Wachs became the third person to file an intent to run, which allows him to start fund raising. So far, Wachs will be up against City Attorney James Hahn of San Pedro, and city Parks Commissioner Steven Soboroff of Pacific Palisades. Wachs has served on the City Council for 28 years and in 1993 placed third in a run for mayor. Overlay for 818? The California Public Utilities Commission will consider an area code overlay for the 818 calling area at its Aug. 5 meeting, a decision that would have a dramatic effect on San Fernando Valley callers if approved. A law judge for the PUC recommended the overlay rather than geographically dividing the area with a new area code. The overlay, if approved, would require callers in the 818 area code to dial 11 digits for every call made, even if it is within the same area code. Phone giants Pacific Bell, GTE and MCI are pushing for a new area code, predicting 818 numbers will run out in early 2001. An overlay passed for the 310 area code was put on hold at least temporarily in June after an onslaught of public opposition. Assemblyman Wally Knox, D-Los Angeles, who has introduced legislation for tighter controls on overlays, criticized the 818 overlay plan as unnecessary. Knox’s bill would require the PUC to make telecommunications companies disclose how many numbers are in use and how many are not. Statewide, there are 180 million phone numbers allocated to phone companies, 35 million in use. Litton Subsidiaries Plead Guilty Two subsidiaries of Woodland Hills-based Litton Industries Inc. pleaded guilty on federal charges of making hidden payments to ensure $200 million worth of defense business in Taiwan and Greece, ending an eight-year federal investigation of the deals. The companies, Litton Applied Technology Division and Litton Systems Canada Ltd., agreed to pay $18.5 million in penalties under the plea. The companies admitted altering their records to hide $16 million paid to “consultants” who helped secure contracts with the two countries. Both pleaded guilty to conspiracy, and Litton Systems Canada pleaded guilty to mail fraud and filing a false statement with the U.S. government. Secession Study Funded Gov. Gray Davis and the state Legislature approved $1.8 million in funding for the Valley secession study in the 1999-2000 state budget. Assembly Speaker Antonio Villaraigosa, D-Los Angeles, Assemblyman Bob Hertzberg, D-Sherman Oaks, Assemblyman Tom McClintock, R-Northridge, and Sen. Richard Alarcon, D-Sylmar, pushed for the state funding in the budget. The secession study, required by state law, is expected to cost $2.3 million. Valley VOTE and the city are expected to cover the rest of the cost. If the secession study shows the Valley could break away from Los Angeles without impacting the city economically, the issue could go before voters as early as 2002. Secession Drive Comes Up Short A petition that would force the Local Agency Formation Commission to study the economic feasibility of San Pedro and Wilmington seceding from Los Angeles came up 20 signatures short, but proponents are expected to have little trouble making up the difference during a two-week grace period. Harbor VOTE Inc. submitted petitions containing 13,450 valid signatures from local voters, 20 short of the 13,570 needed, LAFCO officials announced July 2. However, under state laws governing secession, the group has two weeks to make up the difference. Before the issue of secession can be placed on the ballot, LAFCO must conduct an extensive economic analysis of secession to make sure that it won’t harm Los Angeles or the area that wishes to secede. If Harbor VOTE obtains the required signatures, LAFCO is expected to include that area in its study of the secession of the San Fernando Valley from Los Angeles. Payola plea A top executive at a Van Nuys-based Latin music label pleaded guilty to misdemeanor payola charges for bribing deejays at Spanish-language radio stations for airplay. Fonovisa promotion chief Jesus Gilberto Moreno is the first executive in the record industry to be successfully prosecuted for improper payments. Fonovisa, owned by Grupo Television of Mexico, and its president, Guillermo Santiso, were charged with felony tax violations related to the payola charges following the plea agreement. Big Deal for Vertel Woodland Hills-based Vertel Corp. will partner with Lucent Technologies in a deal that could add up to $20 million in revenues in three years for Vertel. The news shot Vertel stock up 58 percent to $2.97 the day of last week’s announcement. Vertel will develop network management software for Lucent, which the telecommunications company will then sell to its clients such as phone companies. Vertel reported a net loss of $1.5 million (6 cents per share) in the first quarter of 1999, compared to net income of $340,000 (1 cent) in the like year-earlier period.