Posted on 06/08/2005 11:21:57 AM PDT by BurbankKarl
Without first going to neighborhood councils or conducting an independent financial review, Los Angeles Department of Water and Power officials pushed on Tuesday for rapid approval of a 4.3 percent water-rate hike as part of a nearly 20 percent proposed hike over the next five years. The renewed effort to boost water rates comes less than a year after an uproar from the city's network of neighborhood councils forced the City Council to block a 7 percent increase that was supposed to take effect July 1. The council agreed last year to an 11 percent increase and won commitments from utility officials to an independent financial review and community participation before future hikes were imposed. But in submitting their 2005-06 budget to the DWP commission Tuesday, utility officials sought approval of a 4.3 percent rate increase Jan. 1 to be followed by hikes totaling 19.2 percent over the five-year period.
With neighborhood council leaders protesting the action, the commission put off a vote until June 21.
"It was a promise made to the neighborhood councils and the citizens of Los Angeles and it hasn't been kept," said Steve Twining, president of the Bel Air Beverly Court Neighborhood Council and chairman of the Hillside Federation, representing over 40 residents associations.
Joe Vitti, a Granada Hills North Neighborhood Council board member, said the City Council had promised neighborhood councils an independent financial review process for the DWP a year ago.
"It is frustrating this has not been accomplished, and it should be," Vitti said.
DWP Commission President Dominick Rubalcava defended the proposed increase, which would raise $348 million, saying it is needed to pay for federally mandated water quality programs, salary -- "all the economic pressures," the utility faces.
"It's no different than how you would provide for a business, or a family budget," Rubalcava said.
DWP staffers said the proposed "rate action" would include a 90-day review by the neighborhood councils, and also would be "subject to a third-party independent review," as well as to analysis by top city bureaucrats.
The officials emphasized they have yet to determine how the proposed rate hikes would be distributed among residential and commercial users, and therefore that they could vary somewhat for specific users from the 19.2 percent.
An average single-family homeowner currently pays $27.28 per month for water, although only about three-quarters of that would be subject to the rate hike. The remainder is paid to purchase water from other sources.
Council members -- who demanded that the DWP agree to work with the neighborhood councils, as well as to demonstrate they were making efficiencies before asking for additional rate hikes -- were caught by surprise, saying they hadn't seen the proposed rate hikes yet. Several expressed concern over the process, as well as the proposed amounts.
DWP Chief Administrative Officer Robert Rozanski said the council had received a preliminary budget, but probably had not seen the proposed rate hikes because they hadn't been determined earlier.
Councilman Tony Cardenas, who spearheaded opposition to the rate request last year, said the department is going to have a hard time justifying the increase.
"Before they will be allowed to get a rate increase, they will have to abide by reforms recently passed, which include a third-party financial analysis, and the neighborhood council memorandum of understanding."
That memorandum of understanding between the DWP and neighborhood councils signed in April requires a sharing of information between the parties, and was an outgrowth of the rate-hike controversy over a year ago.
Councilwoman Wendy Greuel, who voted against any rate hike last year, said she also was concerned with the proposed hikes and process, saying the utility hasn't yet demonstrated it has made significant progress in becoming more efficient.
A spokesman for Mayor-elect Antonio Villaraigosa said he has "significant concerns."
"He would not support a rate increase until (the DWP's) eliminated inefficiencies and waste," said spokesman Joe Ramallo. "It's critical to involve the neighborhood councils early in the process. He's very concerned."
DWP budget director Jeff Peltola said the driving force behind the proposed rate increases is a $1.6 billion construction program, much of it federally mandated projects to address water-quality issues.
An additional 82 water employees would be added, boosting the total from 2,501 to 2,583 under the proposal.
The rate hikes would ensure that the utility could maintain its AA bond rating, maintain its transfer of 5 percent of annual gross operating revenue to the city's general fund, and maintain operating cash reserves targeted at $50 million.
But neighborhood council leaders said unless the promised cooperation and independent financial review are forthcoming it's unlikely the groups would sign off on future rate hikes. The matter is expected to be discussed June 25 at a congress of neighborhood councils.
Vitti said the neighborhood councils have been waiting more than a year for the independent review process to be implemented.
"It's long overdue."
Remember this advice...
"If it's yellow-it's mello, if it's brown-flush it down", Mayor Tom Bradley.
One of my friend's daughters learned that at camp...I said it was gross
When it comes to water rates, if what they are charging does not recover the cost of delivering the water and operating the sewer system then water shortages will be both inevitable and permanent.
They live in a desert and demand for water keeps growing. What do they expect?
Enron?
no wait... that's power..
Of course we just had a record rain season, most rain (or second most) in Los Angeles history.
Our town just raised the water rates by Over 40%!
They finally got water meters in so they could charge for usage. My bill went down considerably because I don't water my lawn and use an outhouse. Well, kinda...
Now they realize they are not charging enough so everyone's bill is going up by half.
No, we didn't get to vote on it...just like the casino.
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