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Will DWP Ratepayers Get a Fair Shake at City Hall?

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LA WATCHDOG - The citizens of the City of Los Angeles do not trust the Herb Wesson led City Council because of the corrupting influence of cash campaign contributions to Council Members and their pet projects by the real estate developers, city contractors, lobbyists, and the City’s public labor unions. 

This corrosive influence of campaign cash is now on center stage as IBEW Union Bo$$ Brian d’Arcy is demanding that the City Council approve a new four year contract with our Department of Water and Power by August 30, even though the existing contract does not expire for another 13 months. Otherwise, Bo$$ d’Arcy is threatening to withdraw the current proposal. 

 

As a result, City Council President Herb Wesson is pressing the City Council to make a hasty decision, claiming that failure to act on a timely basis will cost Ratepayers about $25 million, the amount of the contracted pay increase that is due on October 1. Herb is also stressing that the City will be able to settle the Romero v. City of Los Angeles law suit that will result in the City dumping $200 million of unfunded pension liabilities onto DWP and its Ratepayers. 

However, this two week time frame does not give the City Council, the Ratepayers Advocate, Ratepayers, Neighborhood Councils, and voters adequate time to review and analyze the proposed contract and its impact on DWP, its operations, and its $1.5 billion in salaries, healthcare benefits, and pension contributions. 

This proposed contract that was negotiated behind closed doors also fails to reform the Department’s restrictive work rules and processes.  These reforms have the potential to save hundreds of millions dollars a year according the August 2012 report by PA Consulting. 

Furthermore, there has been no discussion how this contract and the DEFERRAL of wage increases for three years will impact the City’s budget which assumes that all City workers, including the cops and firefighters, will be “zeroed out” over the next four years.  

Rather than railroading this contract through the City Council, Herb and Mayor Eric Garcetti should endorse an open and transparent process by delaying any decision for at least 90 days. This breather will allow sufficient time for the Ratepayers Advocate, Ratepayers, Neighborhood Councils, and voters to review, analyze, and critique the proposed contract (and its supposedly $6 billion in savings!) and make appropriate recommendations regarding work rules, pensions, health care benefits, and other matters. 

Of course, Herb and some of his cronies on the City Council will squawk about the losing the opportunity to defer a $25 million pay increase for IBEW members.  And while $25 million is not chump change, it is a small drop in the bucket for DWP that has over $20 billion in assets and $5 billion in projected revenues.  It is also a small price to pay compared to the hundreds of millions of dollars in annual savings that may be gained by implementing common sense changes in the DWP’s restrictive work rules. 

Finally, the City Council and Eric Garcetti need to prepare a comprehensive analysis of the IBEW’s campaign contributions to any candidates for Mayor, City Attorney, Controller, and the City Council over the last ten years.  This analysis would include not only successful candidates such as Gil Cedillo and Curren price, but also losers such John Choi, Forescee Hogan-Rowles, and Chris Essel.  This disclosure would also apply to any ballot measure, including, but certainly not limited to, Measure B, the Mayor Villaraigosa’s 2009 Solar Initiative that was rejected by the voters. 

The City Council and Mayor Garcetti have an excellent opportunity to begin earning the trust and confidence of the Ratepayers, Neighborhood Councils, and voters by deferring any decision on this proposed contract between DWP and the IBEW.  There needs to be an open and transparent process.  Otherwise, Angelenos will know that the deck is stacked against them, and will vote accordingly when the City tries to pass the $3 billion Street Repair Tax or the $100 Recreation and Parks parcel fee.

 

NEED TO KNOW:

 

City Council holds a public hearing on this issue Friday, August 16 (10a) at City Hall in Council chambers. (Link) 

 

NC Budget Advocates and LANCC hold emergency public meeting on this issue Monday, August 19 (7p) at City Hall. (NC Budget Advocates)  (LANCC

 

(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee,  the Ratepayer Advocate for the Greater Wilshire Neighborhood Council, and a Neighborhood Council Budget Advocate. Humphreville is the publisher of the Recycler Classifieds -- www.recycler.com. He can be reached at:  [email protected]. Hear Jack every Tuesday morning at 6:20 on McIntyre in the Morning, KABC Radio 790.) 
-cw
 

  

 

CityWatch

Vol 11 Issue 66

Pub: Aug 16, 2013

 

 

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