Contracted city: Transparency & benefits gone

July 2010

The small Los Angeles suburb of Maywood disbanded its city government as of July 1, fired all 100 employees and contracted with the neighboring town of Bell for all municipal services. The Center for Public Accountability and InThePublicInterest.org warned that the city-to-city contract raised red flags about accountability.

In fact, the LA Times reported that Bell contracted with an unknown private company to run Maywood, immediately ending all transparency in city government. City Hall was closed to the media and employees were forbidden to talk to reporters or even identify the contractor.

How does this save money? Former Maywood employees are now working for the contractor, and have lost all benefits, including health insurance.