LA Ratepayers Treed

Pursuant to a Memorandum of Understanding (“MOU”) approved by the Board of Public Works at a hastily called Special Meeting on November 17, DWP will transfer $4.5 million over the next two years so that the Board of Public Works may continue its “tree planting efforts through the City Plants Initiative (formerly Million Trees Los Angeles) for the purpose of increasing the tree canopy, improving air quality, and expanding the urban forest in Los Angeles, while providing energy saving shade to buildings and communities.”

This proposed $4.5 million transfer will be over and above the $6.7 million of Ratepayer money that has already been diverted from DWP’s treasury to the City’s coffers over the last three years. This was part of Mayor Villaraigosa’s scheme to fund generous increases in salaries, pensions, and benefits for City employees.

This arrangement is not in the best interests of the Ratepayers or our Department of Water and Power. This is why Eric Garcetti must direct the politically appointed DWP Board of Commissioners to reject the proposed MOU at its upcoming meeting on Tuesday, December 2.

For openers, this transaction does not make economic sense since the amount of energy saved is miniscule, resulting in an almost non-existent return on investment. Dumb deals also fly in the face of a threatened down grading of Department’s credit rating and the need for a massive rate increases to fund its infrastructure maintenance program and its numerous unfunded environmental mandates.

We also need a better understanding of the overall plan and why it costs $112 to install a $23 tree. There must be a more efficient way to plant 40,000 trees.

While Garcetti’s goal of being the “Greenest Big City in America” is laudable, that does not mean the City has the right to use DWP as its ATM. Planting trees, especially on an uneconomic basis, is not part of DWP’s mission to provide reliable, low cost water and power to the residents of Los Angeles.

As it is, the City and its cronies are already soaking the Ratepayers for over $1 billion a year through the 10% City Utility Tax, the less than transparent 8% Transfer Tax / Fee, the IBEW Labor Premium, the City Council’s pet projects, and the dumping of over 1,600 employees and their unfunded pension liability on DWP.

This proposed arrangement is hardly transparent.

The Board of Public Works sent an email on late Friday afternoon announcing a Monday morning Special Meeting to approve the MOU. The supporting documentation did not even have a cost benefit analysis, just a lot of hot air and platitudes to justify to diversion of the Ratepayers’ hard earned money.

Rather than approving this uneconomic, less than transparent deal that represents the fiscally irresponsible policies of the Villaraigosa era, Garcetti should endorse Back to Basics 101 where the City conducts its business in an open and transparent manner and respects the wallets of the Ratepayers.

He should also establish policies that shine the light on all dealings between DWP and City Hall, ranging from requests by members of the City Council to any existing and future financial arrangements involving DWP and the rest of the City family.

For example, the Ratepayers deserve to have a better understanding and justification of a proposed MOU between DWP and Department of Public Works where DWP will spend $25 million over five years to pay for the relocation of existing water and power facilities that interfere with City sponsored projects.

Ratepayers also deserve to know more about the unpopular and controversial deal that is being pushed by the well-meaning Tom LaBonge where DWP would lease very valuable land around Lake Hollywood to Recreation and Parks for only a dollar a year.

While most Angelenos support the benefits of an expanded urban forest, even if it does damage our sidewalks, it does not justify the diversion of Ratepayer money. To the contrary, the perceived rip off of Ratepayers will only increase the voters’ cynicism and their distrust of our Elected Elite. It may even result in a backlash where Ratepayers will push for a ballot measure to require a popular vote if DWP rate increases exceed inflation.

Eric, you need to honor your promise of Back to Basics, DWP reform, and transparency. Do not tree the Ratepayers. It will only come back to bite you.

(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].)
-cw