For over 100 years, the tiny city of Vernon, tucked away in a pocket below the 10 freeway, has served as a small, business-friendly enclave. Founded by Basque merchant John Leonis and run almost continually by the Leonis family since then, Vernon’s low utility, insurance and tax rates have attracted many of California’s family-owned businesses, including Simply Fresh Fruit, Tapatio Hot Sauce and the city’s largest employer, Farmer John Meat Co. In just over 5 square miles, Vernon generates $343 million annually in state and local tax revenues. But in recent years, the criminal indictments of three of the city’s top officials have brought to light decades of corruption, insider dealings and lavish spending by Vernon’s ruling class. Now, in an unprecedented move, California’s state Assembly has overwhelmingly approved a bill to dissolve the city charter of any city of less than 150 residents – and guess what? Vernon, with a resident population of 96, is the only one. Assembly Speaker John Perez, the bill’s author, contends that in a city with so few voters, there is no real accountability for government activity and thus ample opportunity for corruption. Business owners in Vernon are up in arms, saying the move would damage the city’s unique business climate -- and perhaps drive them out of the state altogether. Are these idle threats? Can we afford to lose the businesses that call Vernon home? Should the state intervene when city government goes awry?
Guests:
John Perez, Assembly Speaker (D-Los Angeles), author of AB 46
Marisa Olguin, President and CEO of the Vernon Chamber of Commerce
John Van de Kamp, Independent Ethics Advisor for the City of Vernon