On The Money: Vernon Works

City Spends Public Funds on Lobbyists and Media Campaign

By Mike Luery

SACRAMENTO (CBS13) --  Tens of thousands of dollars in public funds are being used to hire lobbyists, lawyers and consultants. It involves a city with a checkered past and a very uncertain future. Vernon, California may be a tiny enclave of just 95 residents, but it packs a potent political punch. The city just spent $65,000 in public funds to pay for an extensive advertising campaign that included newspaper ads, radio commercials and TV spots like this one.

The theme of the campaign is "Vernon Works", reflecting the city's industrial base of 1,800 businesses that employ 50,000 workers. But only a handful of those workers actually live in Vernon.

The city is also spending big bucks to kill a bill that would change Vernon forever.

"It would take a small city that has a horrific history of corruption and disincorporate it," Assembly Speaker John Perez told CBS 13. 

That history includes corruption – as CBS 13 reported last year in an On The Money segment – that focused on former city manager Bruce Malkenhorst, who is facing embezzlement charges.

The theme of the campaign is "Vernon Works", reflecting the city's industrial base of 1,800 businesses that employ 50,000 workers. But only a handful of those workers actually live in Vernon.

The city is also spending big bucks to kill a bill that would change Vernon forever.

"It would take a small city that has a horrific history of corruption and disincorporate it," Assembly Speaker John Perez told CBS 13.

That history includes corruption – as CBS 13 reported last year in an On The Money segment – that focused on former city manager Bruce Malkenhorst, who is facing embezzlement charges.

CBS 13 has learned that other Vernon officials are now under active investigation by the California Attorney General for possible illegal activities.

Under the Speaker's bill, AB 46, Vernon would lose its cityhood and be governed instead by Los Angeles County.

"There is no independent electorate in Vernon," stated the Assembly Speaker, whose district includes the city of Vernon. The Los Angeles Democrat added, "The city council controls all but 4 of the houses in the city."

But Vernon is fighting back by hiring some of Sacramento's most influential lobbyists, along with communications consultant Fred MacFarlane.

 In an interview, MacFarlane explained Vernon's lobbying efforts. "It would be no different if Elk Grove or Richmond or South Sacramento or Citrus heights were finding themselves in sort of an unprecedented situation with legislation that would have major impact on their cities," MacFarlane told a television crew.

But unlike other cities, Vernon is spending six-figures a month, according to the Assembly Speaker.

"Oh it's more than tens of thousands," stated John Perez. The Speaker told CBS 13, "I mean I know of one contract lobbyist alone that's getting $20 to 25 thousand. There are consultants getting $40 thousand a month. There are hundreds of thousands of dollars a month being spent by this tiny city to hire lawyers, consultants and lobbyists. All of it is public money."

Vernon's spokesman responded: "Well the Speaker if he's concerned about the expenditure of funds by the city of Vernon and the level at which the city has had to respond, he can simply drop the bill," MacFarlane stated.

But AB 46 has strong bipartisan support at the Capitol, where Vernon is fighting for its political survival – thanks to public money that comes primarily from the 1,800 companies doing business in Vernon.

"If AB 46 were to pass," MacFarlane stated, "their next decision is when do we leave?"

But Common Cause, a good government group, questioned the use of public funds. 

"So it's an odd situation where they are playing with taxpayer dollars that don't really come from the residents of Vernon," said Derek Cressman, Regional Director for Common Cause.

Capitol hearings on the Speaker's bill to disincorporate Vernon are likely to be held in March or April.

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