L.A. City Council offers proposals to exert more control over DWP

In the midst of a standoff with the Department of Water and Power over proposed rate increases, members of the Los Angeles City Council plan to roll out a series of proposals to rein in the power of the public utility, which has long been criticized for its lack of transparency.

Councilman Greig Smith said members plan to introduce as many as eight motions Wednesday, including a change to the city charter that would allow the City Council to exert control over the utility’s budget.

“We want to see what they are spending their money on, we want to know what they’re doing. We don’t know, so we need to know that,” Smith said.

Other proposed charter changes, which would go before voters on the ballot next March, would allow the City Council to remove the department’s general manager and members of the DWP board, moves that are now under the purview of the mayor.

The interim DWP general manager, S. David Freeman, angered City Council members this week when he recommended that the DWP board abandon plans to transfer a promised $73.5 million in “surplus revenue” to the city’s cash-strapped treasury. Freeman said his recommendation was based on the fact that the City Council did not approve a rate increase last week that was needed to cover the agency’s bills. Freeman said the utility was losing money regularly due to higher fuel costs so there was no such available "surplus."

The City Council agreed last week to allow the DWP to increase bills by 0.6 cents per kilowatt hour of electricity consumed. DWP board members rejected that, however, and said they wanted an increase of 0.7 cents per kilowatt hour instead. The council then vetoed that proposal.

Both proposals would have provided DWP with 0.5 cents per kilowatt hour to pay for the utility's existing financial obligations. Any additional money -- 0.1 cents under the council's proposal, 0.2 cents from the DWP board's proposal -- would have been directed toward new energy conservation and renewable power initiatives.

Smith said another proposal that was being introduced Wednesday would change the makeup of the five-member DWP board. Currently the mayor nominates the members and the council confirms them.

Under a plan advanced by Smith and others, two DWP board members would be appointed by the mayor, including one who is an expert in the utility field. Two other members would be named by the City Council, with one serving as a representative from the business community. A fifth would be chosen by neighborhood councils. Commissioners and the general manager could each be removed on a two-thirds vote of the council.

-- Maeve Reston at Los Angeles City Hall

Comments

[uncle_vito]

Why does the DWP pay the city? What does the city do to provide water and power? I hope none of our utiltiy bill money goes to the city. That would be a waste.

[Richard Taoka]

How can one city department have so much power and a lack of oversight?

They are allowed to give raises/bonuses to their employees with a generous pay/benefit plan and yet have the nerve to say that they don't have the surplus funds to transfer to the city's general fund.

They turned down offer proposed by the City Council which would have covered the cost involved.

Now they are holding the city and the people of LA hostage.

The City Council who represents the people of LA should do everything in their power to change the operation of DWP. No one entity should ever have that much power without oversight and accountability to the people they serve.

[Once proud American]

Absolute power....

[Asim]

Where can the citizens file proposals to exert more control over the circus clowns that make up the L.A. City Council?

[LA resident]

The councils proposal is socialism at its best. Control, decide, replace if controversial.

Do you really think you get an efficient General Manager from the private sector if that person could be removed from the council just by vote?

I am not agreeing with DWP board's actions last week, but these council proposals just make things worse. For one, the council itself does not take care well of its business: increasing salaries throughout 2009 and then suddenly laying off 4,000 or somehing employees a year later because they are out of money.

I actually think there needs to be more transparancy in council member's actions as well. Once we got that on both sides (the utility and the city council), let's have a comprehensive overview on need and implications of changes to charter.

[james andrews]

A utility increase is a disguised tax increase. When you charge more for electricity so you can pay for other departments it is just a tax. The voters must speak out. We cannot raise taxes or utility rates and not cause more layoffs and less income. The city must cut spending.

[PeachesVWB]

Let's see if I understand this correctly. The very people who are driving the City of Los Angeles off a cliff now want to have more control over a wildly profitable utility. That should work out well. /sarc

[FERN MAN]

IS THE DWP A REPUBLICAN?

[Hoot]

The DWP's own website defines itself as "a revenue-producing proprietary department." Do you think any other department in the city could get away with this kind of behavior? It's appalling.

[Jose]

uncle-Vito:

Read the history of LA government, and I hope you will understand then. Because you have not understood these articles.