time is displayed in displayed in utc insteal of local time

I tried to update the time through the applet, it shows the right zone but even after updating it shows UTC time.

Heres' what tzdata shows.

sudo dpkg-reconfigure tzdata

Current default time zone: 'America/Los_Angeles'
Local time is now: Tue Nov 8 01:19:39 PST 2011.
Universal Time is now: Tue Nov 8 09:19:39 UTC 2011.

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: indicator-datetime 0.3.1-0ubuntu2 [modified: usr/lib/indicator-datetime/indicator-datetime-service]
ProcVersionSignature: Ubuntu 3.1.0-2.3-generic 3.1.0
Uname: Linux 3.1.0-2-generic x86_64
NonfreeKernelModules: fglrx wl
ApportVersion: 1.25-0ubuntu1
Architecture: amd64
Date: Tue Nov 8 01:18:00 2011
InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Alpha amd64 (20111107)
ProcEnviron:
 PATH=(custom, no user)
 LANG=en_US.UTF-8
 SHELL=/bin/bash
SourcePackage: indicator-datetime
UpgradeStatus: No upgrade log present (probably fresh install)