Councilman sees conflict of interest in mailer from mayor

This story appeared in the Antelope Valley Press November 2, 2000

By JANNISE JOHNSON
Valley Press Staff Writer

PALMDALE - Alleging that a mailer requesting contributions from area doctors constitutes a conflict of interest, Palmdale City Councilman Mike Dispenza filed a complaint Wednesday with the Fair Political Practices Commission.

The mailer originated from Palmdale Mayor James Ledford's home. Ledford confirmed sending about 80 mailers to doctors around Oct. 24.

In the mailer, Ledford asks physicians to make $99 contributions to Jim Root and John Mayfield, both of whom are running for seats on the Palmdale City Council.

Contributions of $99 or less can be given anonymously.

Dispenza perceives the request as a conflict of interest because the mailer asks doctors affiliated with Prospect Medical Holdings Inc. of Los Angeles to fund the campaigns of people who, if elected, could be asked to spend $5.2 million helping Prospect build a new hospital and a related senior housing complex.

Prospect officials are slated to present a business plan for the proposed hospital to the City Council by March.

"It would be a great conflict of interest to take money from these people and then vote on something for them," Dispenza said.

Ledford disagrees.

"Conflict of interest for a $99 check? I think it's ridiculous," he said, and questioned whether Dispenza would abstain from every issue submitted by those who are funding his own campaign.

The council's review is intended to give Prospect's proposal "a fair hearing," the mayor said. "Frankly, the whole issue has yet to be heard."

Ledford also said the healthcare providers he's spoken with favor a full-service hospital at Fifth Street West and Palmdale Boulevard, the site where Prospect plans to build.

During candidate forums, Root and Mayfield also have supported Prospect's plans for that location, noting that no other agency has submitted a proposal for constructing a badly needed medical facility.

Dispenza - as well as Root and Mayfield's opponents, Richard Loa and Rick Norris - has argued against that location, saying any city support should be directed toward helping Antelope Valley Hospital build a medical center at 40th Street East and Palmdale Boulevard.

Dispenza's interests in opposing Prospect Medical are suspect because of the councilman's financial interest in land immediately across from the 40th Street East site, Ledford said.

Dispenza denies any conflict because of his holdings, saying he has abstained from voting on any issue involving that parcel of land.

He also says he is in the process of selling his interest in the property, which is valued at about $10 million.

Mayfield said he was not aware of the mailer sent by Ledford, but noted that he, like Ledford, does not see a conflict.

"I wouldn't benefit from anybody building a hospital," Mayfield said. "I'm sure that Mike Dispenza, when he ran for office, asked for contributions from different groups."

According to information from the Fair Political Practices Committee, people elected to city councils must abstain from voting only when they stand to benefit from votes that would directly increase their investments in businesses, stock holdings or real property, or votes that would increase their income as employees of a subject company or as a recipient of a loan or gift.

That will not stop him from filing his complaint, Dispenza said.

"I tell you this, it jeopardizes any vote now," he said. " All this stuff may not be illegal, but it is unethical and it gives the impression of impropriety. We'll let the Fair Political Practices Committee take a look at it."

Although Dispenza has refrained from actually casting a ballot on matters concerning AV Hospital's improvements at 40th Street East and Palmdale Boulevard, in May, he participated in keeping a quorum together for the council so that his two colleagues, Ledford and Councilman Rod Penner, could cast votes that allowed the city to provide $1 million for infrastructure improvements requested by AV Hospital.

Without a quorum of three, no vote was possible.