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From the LA Times:

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Debt Has City on Ropes
Gardena owes bankers $26 million and there is no money to pay them. The council has turned to a bankruptcy specialist for help.
http://www.latimes.com/news/local/la-me-gardena10dec10,1,5785564.story?coll=la-headlines-california

D.A. Won't Retry Officers
The decision disposes of the last criminal case in the LAPD's Rampart scandal. A judge had overturned the three convictions in 2000.
http://www.latimes.com/news/local/la-me-rampart10dec10,1,6296086.story?coll=la-headlines-california

Undersheriff Takes Aim at Challenges
Budget woes are among the issues facing Larry Waldie in his new L.A. County job. The 38-year veteran has plenty of experience for backup.
http://www.latimes.com/news/local/la-me-onthelaw10dec10,1,5418863.story?coll=la-headlines-california

More County Jail Funds Urged
Top budget manager proposes spending an extra $24 million to stop early release of inmates, but sheriff's officials say it is not nearly enough.
http://www.latimes.com/news/local/la-me-release10dec10,1,1713145.story?coll=la-headlines-california

Sanction Is Closer for King/Drew
National accreditation board rejects the hospital's efforts to retain its seal of approval. The center plans another appeal.
http://www.latimes.com/news/local/la-me-kingdrew10dec10,1,4571489.story?coll=la-headlines-california

Shelter in Santa Clarita Proposed
With the city refusing to open its homeless facility this year, Supervisor Antonovich suggests using a county maintenance yard.
http://www.latimes.com/news/local/la-me-homeless10dec10,1,110445.story?coll=la-headlines-california

Villaraigosa Attacks Hahn Over PR Billing
Stepping up his efforts to link Mayor James K. Hahn to alleged corruption, mayoral candidate Antonio Villaraigosa on Thursday accused Hahn of complicity in work a public relations firm did for a councilman's campaign but charged to the city.
http://www.latimes.com/news/local/la-me-fleishman10dec10,1,5140644.story?coll=la-headlines-california

Jail Locked Down After Escape Report
Sheriff's deputies ordered a lockdown Thursday of the downtown Men's Central Jail after a report of an inmate escape, authorities said.
http://www.latimes.com/news/local/la-me-lockdown10dec10,1,765806.story?coll=la-headlines-california

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From the Daily News:

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Failed Rampart case still leaves questions
Prosecutors dropped charges Thursday against three officers accused of abuses in the Rampart Division, closing the book on what was once touted as the worst scandal in LAPD history but which in the end became scaled back to the Rafael Perez scandal.
http://www.dailynews.com/Stories/0,1413,200~20954~2587947,00.html

Fraud involved in DWP billing?
Mayor James Hahn's administration faced new accusations Thursday over abuses of Fleishman-Hillard's public-relations contract with the Department of Water and Power as some officials suggested possible fraud in overbilling.
http://www.dailynews.com/Stories/0,1413,200%257E20954%257E2587888,00.html

Hahn calls in sick for State of the Valley event or else
VAN NUYS -- After weeks of uncertainty over whether he would appear, Mayor James Hahn failed to show up to deliver his much anticipated State of the San Fernando Valley speech Thursday, citing illness.
http://www.dailynews.com/Stories/0,1413,200%257E20954%257E2587920,00.html

More may be given flu shots
State health officials said Thursday that rationing flu shots has worked so well that many providers have excess supplies.
http://www.dailynews.com/Stories/0,1413,200%257E20954%257E2587645,00.html

Feinstein's plane averts possible attack
WASHINGTON -- Sen. Dianne Feinstein got more excitement on her first trip to Iraq than she hoped for -- her plane was forced to take evasive maneuvers on the way out of Baghdad after a flare system indicated a possible missile attack.
http://www.dailynews.com/Stories/0,1413,200%257E20954%257E2587932,00.html