Los Angeles' top executive warned Tuesday that city workers could face layoffs and additional furloughs if the City Council fails Wednesday to issue proposals for leasing out nine municipal garages.

City Administrative Officer Miguel Santana said revenue from the leases is needed to avert the layoffs of 1,000 workers and the addition of 10 furlough days for employees already facing 10 to 16 unpaid days off.

"If we don't have the money this year, we are going to have to take extraordinary steps to make it up," Santana said during a City Hall briefing. "We would begin the (layoff) process immediately."

Officials estimate the city can reap $53 million this year from the deal, which calls for leasing the nine garages to private operators for 50 years and sharing in their profits.

"Any money beyond that will be used to mitigate next year's shortfall, which is at $320 million," Santana said. "If we decide not to go ahead, then we should begin to make the cuts now."

The garages are located on Dickens Street in Sherman Oaks; Friar Street in Van Nuys; Ventura Boulevard in Studio City; Robertson Boulevard in West Los Angeles; Broxton Avenue in Westwood; Pershing Square in downtown Los Angeles; and in Hollywood on Cherokee Avenue and at the Cinerama Dome and Hollywood/Highland.

A garage in the Larchmont area was eliminated from the original list.

The garages house a total of 8,398 parking spaces, including 3,006 in the Hollywood & Highland complex.

The city still owes money on loans used to build some of the facilities.

Chicago is the largest city to undertake a leasing program, but ran into problems when it included parking meters in its package and had to face voter wrath over higher prices.

Private sector to charge more

In Los Angeles, some council members have said the city should continue to operate the garages but employ practices used in the private sector. However, Santana said the city would be unlikely to make the needed improvements or to charge the higher rates needed to turn a profit.

Under the request-for-proposals to be sent out, the city would share in profits but not be responsible for improvements.

Santana said he did not like having to lease city assets, but he felt the cash-strapped city had no choice.

"Parking garages are not our core business," Santana said. "It's not our core mission."

Council President Eric Garcetti said the budget proposed by Mayor Antonio Villaraigosa and approved by the council included revenue from the lease of the garages.

"Without that, we create a $53 million hole," Garcetti said. "There is no reason we shouldn't do this where we can actually make some money."

Councilman Bernard Parks, who chairs the council's Budget and Finance Committee, said the city doesn't have much choice if it wants to avert layoffs and furloughs.

"This is not our final shot at it," Parks said. "We can send out the RFP and take a look at what comes back to see if it is viable."

"If we don't approve this, it means there will have to be additional cuts somewhere."

Impasse over health care costs

In a related issue, Santana said he is preparing to declare an impasse in talks with civilian unions over the costs of providing employee health care. The city has been trying to change the health care provision of the union contracts but has been rebuffed so far.

Declaring an impasse gives the city the ability to impose its last offer on the unions.

"Our costs have gone up 113 percent in the last 10 years and we are rapidly reaching the point that we can no longer afford it," Santana said.

"We have tried for years to increase the co-pay and it hasn't gone up from the $10 when it first went into effect. Any effort to increase the co-pay has been blocked by labor."

Cheryl Parisi, general manager of AFSCME Council 38 and a member of the Coalition of City Unions, said the unions are fighting the declaration/

"We don't think he is going through the right channels," Parisi said. "We have the most cost-effective plan of anyone in the city and have worked cooperatively in the past with the city."

Parisi said the coalition will file an appeal with the Employee Relations Board to head off the declaration.