Challenger Charges Hahn Campaign With Conflict of Interest

A private lawyer whose firm was recently awarded a $300,000 contract by Los Angeles City Atty. James K. Hahn was among the hosts at a $250-a-plate fund-raiser for Hahn on Thursday night at the Biltmore Hotel.

David Farrar’s downtown firm--Brand, Farrar, Dzibula, Freilich & Kolstadt--won the contract to help the city negotiate a deal to build a sports arena near the L.A. Convention Center about two months after it hosted a smaller fund-raiser for Hahn that netted at least $4,000. Unlike most city contracts, the arena legal work was never sent out for bid publicly; rather, Hahn’s office invited a handful of firms to apply, then selected among four after conducting interviews.

“It’s a blatant conflict of interest,” charged Encino lawyer-developer Ted Stein, who is challenging the 12-year incumbent in the April 8 election. “Jim spends his time awarding contracts to those that can help him the most in his campaign and his fund-raising, rather than putting the best interests of the city first.”

Hahn could not be reached for comment Thursday, but his campaign manager, Matt Middlebrook, said Farrar’s fund-raising had nothing to do with the contract award. Deputy City Atty. Patricia Tubert, who is overseeing the contract, said Brand, Farrar was selected because it offered the lowest rate: $195 an hour, compared to $250 to $375 an hour from the other firms.

“What we were looking for is someone with expertise in negotiating and drafting complicated development documents,” Tubert said, noting that Brand, Farrar had done legal work for the Metropolitan Transportation Authority when it built its downtown headquarters. “I had no idea that the Brand, Farrar firm was doing a fund-raiser. They were an excellent firm. They were well-qualified and they came in at the lowest bid.”

Farrar did not return repeated calls seeking comment.

At least one of the other applicants, Quateman & Sidell, also has made significant campaign contributions to Hahn, records show. But Quateman’s $275-an-hour bid was rejected.

“I do not think it is a conflict. Jim handles all of these things the same, by the book,” Middlebrook said. “This is absurd. The last person to offer advice on contracts is Mr. Ted Stein, the very last person. He wouldn’t know an ethical contract if it jumped up and hit him in the face.”

Middlebrook noted that while Stein was president of the city’s Airport Commission, he personally approved a $49,500 lobbying contract to Webster L. Hubbell, who was convicted of federal crimes connected to the Whitewater affair. The city controller’s office--and a federal grand jury--is investigating whether Hubbell ever performed the work he was paid $25,000 for, and is examining Stein’s role.

Stein, who is traveling to Little Rock next week to testify before a Whitewater grand jury, said the Hubbell contract is irrelevant.

Campaign finance reports show that both Stein and Hahn receive vast support from Los Angeles lawyers, including several who do business with the city.

Stein has support from the Century City firm Christensen, White, Miller, Fink & Jacobs, which has billed the city nearly $1 million for its defense of sexual harassment suits against City Councilman Nate Holden. Hahn has received help from that firm in the past as well.

Latham & Watkins is among Stein’s largest supporters, and it, too, has a city contract. So do Barbosa, Garcia & Barnes and Wilson & Becks, two firms on Hahn’s list of supporters.

“If we have this conflict, which I do not think we do, Ted [has the same] conflict. He wants to be city attorney, and all of these people that do huge amounts of business with the city have raised huge amounts of money for his campaign,” Middlebrook said. “The difference is, we are in office and Ted is not.”

Stein said the Farrar situation stands out because of the proximity between the contract award--the firm’s first with the city, according to Tubert--and the fund-raising activity. “You don’t have a fund-raiser on June 29th and then award a contract two months later,” he said. “If that is not payback, I don’t know what you call it.”

Farrar was among about 50 “hosts” of Thursday’s buffet dinner, which Middlebrook expected to raise nearly $200,000. The dinner was chaired by former Mayor Tom Bradley and County Supervisor Yvonne Brathwaite Burke, among others, with a host of politicians--including U.S. Sen. Dianne Feinstein (D-Calif.) and nine of L.A.’s 15 City Council members lending their names as “honorary co-chairs.”

Hahn, who some political analysts see as the favorite in the race because of his incumbency and great name recognition, is far behind Stein in fund-raising. The latest reports are due out today, but Stein said Thursday that he has raised more than $900,000 already, with about $800,000 still in the bank. Middlebrook said Hahn has just over $300,000.

To avoid conflicts, Stein said that if he is elected he would appoint a panel to select outside counsel, removing himself from the process. Such a panel, he said, would include members of the city attorney’s staff and retired judges or private legal experts. He also said he would work to reduce the amount spent on outside contracts, which has topped $7 million annually in recent years.

“There’s a more fundamental question: Why do we contract everything out?” Stein said. “Why don’t we have city attorneys out of the 375 who can do it, who are well trained? That’s what troubles me.”