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Antonio’s Job Creation Plan: DWP as the Economic Engine to Subsidize Development, New Business


made last Tuesday and hardly anybody noticed, which was City Hall’s goal.

Having fiddled the last three years while a couple of hundred thousand people lost their jobs and city treasury fell deep in the red, Mayor Antonio Villaraigosa in his desperation has begged, borrowed and stolen every cent he can to keep LA out of bankruptcy. 
All to no avail.
So now he and his DWP front man David Freeman have developed a new scheme to transform the nation’s largest municipal utility into a redevelopment and economic recovery agency and economic engine that will provide subsidies, reduced water and power rates and even land giveaways to developers and businesses that will expand or locate in LA.
The mayor’s obedient appointees to the DWP Commission jumped aboard the program and gave blanket approval to Freeman, who, despite his abundance of hot air and disjointed memories of the long lost past, could offer no details.
They acted even as a Grand Jury in Sacramento was finalizing a scathing report that found the local utility in the state capital violated the law with a similar scheme and other abuses of ratepayer money.
They acted even as they were awarding millions of dollars in back pay for a long as two years to DWP managers and certain other classes of employees as well as giving them commitments to even more money this year and the next few years.
They acted even as they were killing nearly $1 billion in badly-needed infrastructure investments in the water and power systems and renewable energy resources.
Those cuts were needed to soften the blow to ratepayers this year while continuing their efforts to come up with a way to double and triple rates in future years without the troublesome need of public involvement or even City Council approval. The vehicle for that is the ECAF, the Energy Cost Adjustment Factor, which has been expanded to include numerous categories of expenses beyond just the temporary fluctuations in fuel and water costs.



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12 Responses to Antonio’s Job Creation Plan: DWP as the Economic Engine to Subsidize Development, New Business

  1. Anonymous says:

    Who is going to pay for these subsidies? The Mayor must request an economic analysis to justify this nonsense. Don`t hold your breath, however. Measure B dejas vu. Deception and corruption. I`m curious to see how our aspiring future Mayors, Garcetti, Perry, La Bonge, and our worthless Controller will react. I know Greuel will continiue her lapdog performance with Antonio.

  2. anonymous says:

    Oh my God, Ron. I don’t know where to begin. There’s much I don’t understand.
    They’re admitting that the demand for power has increased and rates may have to increase, yet they wish to loan power (at reduced rates) to incoming businesses. Are we, the ratepayers, forking out the loan at our expense? Where does the homeowner rate payer factor in? Isn’t citing the TVA a bit passe? Just how old is Freeman? And this COLA crap. Okay, yes, cost of living has increased in my neck of the woods-mainly from my DWP bills and property taxes (never mind that my property value hasn’t increased). Everything else has been around the same. Most folks in the private sector cannot afford to increase prices and employee salaries because they’ll lose customers. Private sector employees understand that it’s about keeping their jobs. Not so with DWP. We have no choice but to pay them. So, while jobs are lost and others find it tough to make ends meet, these well paid workers are getting raises. Something’s just not right here.
    Where’s Howard Jarivs?

  3. anonymous says:

    Are employee raises and perks acceptable under prop 218?
    Gosh, it seems like the only thing transparent about this administration are those ladies around the swimming pool at the Vegas hotel where the mayor and his gal were at during that energy summit.

  4. Anonymous says:

    How about giving subsidies to businesses that are already here. Isn’t that easier than trying to attract new ones, even as we lose the ones we have. If nothing else we can save money on that needless “Economic Development” team in the Mayor’s office. When will the Mayor start cutting his bloated staff and share the pain with everyone else.

  5. Anonymous says:

    Freeman is senile dreaming of legacy and he is feeding the narcissist a lot of b.s., who is dreaming of greatness. Good luck to both of them. The train has left the station. Antonio will go down as the worst Mayor.

  6. anonymous says:

    Good point 7:33 PM.
    On that same note, how about giving subsidies to existing single family resident ratepayers?
    Also, at what point can a person sue for the City’s increased developments and influx of new businesses (with reduced rates) while homeowners are struggling to avoid tier 2 billing? Wouldn’t that be justifiable damages?
    Ron, I’m willing to chip in on legal fees so someone can look into this.

  7. Anonymous says:

    Villar got himself a “jobs tsar”
    http://online.wsj.com/article/SB126316896876124009.html?mod=WSJ_hps_MIDDLEThirdNews
    And the DWP will play a major role in attracting new companies.
    If you believe all this silliness, you’re seriously stupid.
    The part that got me chuckled was that this tsar had a task in the Clinton administration to create jobs in Russia and he dealt with some rabbits on farms or whatever. Maybe this is what LA should do — create rabbits farms or chicken farms.

  8. So what is the cost of all this economic development?
    Is this another blank check?
    And if DWP and the Mayor are so interested in economic development and job creation, why not support our private solar contractors and the Building Trades by bidding out the work for the 400 megawatts of In Basin Solar Power. It will create more jobs and cost billions less compared to the inexperienced DWP and its notoriously inefficient IBEW construction work crews.

  9. Anonymous says:

    Anything else we should know about in the City of Los Angeles besides DWP, or is that the only civic issue?

  10. Anonymous says:

    L.A.Times finally said it. The City is mismanaged. It`s about time they admit it.

  11. FINANCIAL CONFLICTS says:

    Although it may not be illegal, it sure has the appearance of a FINANCIAL conflict of interest:
    1. DWP managers recommend a very favorable (pro-labor) contract with IBEW. The City Council approves it.
    2. DWP managers then ask for the same contract benefits for themselves and guide it through the DWP Board for their approval answering questions and explaining why it is a “good deal” for DWP and the City.
    3. These very same managers shown on the video will now get the financial benefit of mimicking the IBEW contract that they recommended.

  12. foundalot ofwillgo alongwith your blog.

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