Breakthrough may be near in Villaraigosa-council dispute over electricity rate boost [Updated]

Los Angeles Mayor Antonio Villaraigosa and City Council members may be close to a breakthrough in their protracted dispute over how much the municipal utility should charge ratepayers and how much it should contribute to the city’s troubled treasury.

The council voted 8 to 5 on Wednesday to adopt a three-month electricity rate increase of 0.6 of a cent per kilowatt hour to take effect July 1 and be reviewed again by Oct. 1. The action marked the second time that the 15-member council mustered a bare eight-vote majority to back an increase equivalent to a 4.5% boost for ratepayers. Opposing the plan were council members Bernard C. Parks, Jan Perry, Paul Krekorian, Tom LaBonge and Dennis Zine. Councilmen Greig Smith and Ed Reyes were absent.

The proposal largely mirrors an increase that the council approved two weeks ago but that died after the Department of Water and Power’s board of commissioners demanded a larger, longer-lasting hike to pay for the fluctuating costs of coal and the mayor’s renewable energy agenda. That council rejected the DWP’s counter-proposal.

As a result, DWP executives said the department would not transfer $73.5 million to the city’s cash-strapped budget, maintaining that the utility could not afford it without the rate hike. The DWP’s refusal to provide the money has dramatically increased the size of the city’s deficit, expanding it to $222.4 million for the fiscal year that ends June 30, city budget officials said Friday.

The DWP board has scheduled an emergency meeting Thursday to consider accepting the council's increase.

“We’re pleased with the council’s actions,” DWP Acting General Manager Raman Raj said Wednesday afternoon.

Next week, Villaraigosa is expected to announce his list of planned layoffs for the fiscal year that starts July 1.

“I’m guardedly optimistic that this is a done deal,’’ said Councilman Herb Wesson, who added that he has been talking with the mayor daily in an effort to broker a rate hike agreement.

[Updated at 3:52 p.m.: “I think what the mayor did was put the city before some of the things he supported."

Wesson said he has talked with the mayor almost daily since the political feud began, in hopes of finding a compromise. Those discussions began the night of April 2, when Wesson went to the mayor’s home and the two longtime political colleagues spent a few hours smoking cigars and tossing around ideas on how to reach a deal, the councilman said.

“The critical thing is that, as we move forward with all of the other issues, the mayor and the council need to be on the same page whenever we can," he said.

Wesson said the council retains the political leverage necessary to ensure there’s “more transparency" and accountability at the DWP, including possibly installing a ratepayer advocate.]

“We feel the commission will do, independently, what’s in the best interest of the city," said Matt Szabo, Villaraigosa’s deputy chief of staff.

-- Phil Willon and David Zahniser at Los Angeles City Hall

Comments

[Hoot]

Any "breakthrough" that does not include pay cuts at the DWP is bordering on abuse of power. Consider the following salaries when paying your DWP bill:

Raman Raj, chief operating officer, $247,177
Aram Benyamin, acting senior assistant general manager - Power, $233,021
James H. Caldwell Jr., assistant general manager environmental affairs, $220,722
Pamela Porter, assistant general manager educational outreach, $218,634
Cecilia Weldon, assistant general manager operations division, $218,634
Matthew Lampe, chief information officer, $207,088
John Chen, director of customer service and economic development, $206,044
Lorraine Paskett, director of legislative and regulatory affairs, $186,667
Joe Ramallo, director of public affairs, $176,812
Ann Santilli, controller, $165,829
Joseph Avila, staff assistant to the general manager, $128,663

[Jose]

Wesson, and the 7 other nuts that voted for the rate hike will never get my vote if they decide to run for mayor. I never voted for the Pint Size Mayor, but I will sign a recall on him. These people are just as corrupt as the mayor. Raj, really wants the job bad, and he does not have a conscience just like the rest of the puppet.

Wesson, statement about the Pint Size Mayor putting the city for some of the thing he wants to be STUPID. The Pint Size is only thinking about himself as always. He is scared of a recall, and bankruptcy. It would hurt his pint size ego.

[syscom3]

The surrounding communities that are not served by the DWP should start poaching business's that are.

Make LA feel the sting of reduced taxes.

[Josh Ooi]

Sell out.. we the taxpayer is being short change by our city officials. It is time the city declare bankrupt and reorganize, re-negotiate all contracts, retrench and rebuilt. Nothing can save LA now with taxes, fees etc going up... just to pay unions their benefits, compensation and high pay. Get this Mayor out of the office including all council members that vote for the increase.. whether it is only 3 months or less.. IT IS THE PRINCIPAL THAT COUNTS

[Scott Zwartz]

The vote was most likely illegal as it appears to have been contrary to The Brown Act, which requires such matters to be discussed and voted in public. This story is still breaking, but at this time, there are reports that the City Attorney in attendance advised the council that it could not invoke "an Emergency" in order to meet in secret, as there was no emergency.

To the extent the Council may have pretended that its financial problems are an emergency, that basis was removed when the City announced that it had just discovered more revenue when the DWP refused to transfer funds.

As the story recounts, the council voted down this rate increase in public a couple days ago, and then yesterday afternoon, Eric Garcetti, Council President, declared an "emergency" and in the closed door meeting the rate hike was agreed to. Eric Garcetti pulled a similar ploy after the City Council had approved a new 2 acre regional fire station for Hollywood to be on land that developers wanted for a mixed-use project. As soon as the Council approved the 2 acre site, Garcetti called a closed door session after which Hollywood's 2 acre fire station was reduced to 1/2 acre and relocated to the intersection of Hollywood Boulevard and Hollywood Freeway which is subject to grid-lock much of the afternoon. Thus, by this closed door maneuver Hollywood's new fire station was reduced by 75% and the 2 acres was preserved for private developers.

Sad to say, Los Angeles has no news organizations. The LA Times, the local and network "news" shows are all cheer leaders for what the politicians want.