NEIGHBORHOOD COUNCIL/LADWP MEMORANDUM OF UNDERSTANDING OVERSIGHT COMMITTEE

January 16, 2008

MEMO TO NC/LADWP OVERSIGHT COMMITTEE MEMBERSHIP ON THE FIVE YEAR SURVEY RESOLUTION REGARDING PROPOSED LADWP RATE ACTION

COLLEAGUES,

Since our January Membership meeting, we have been talking with Councilmembers and urging them not to rubber stamp the proposed DWP rate actions for 2008-2010. They will review DWP rationale and may withhold a decision if they are not convinced.

Our position is that there is no justification for any increase. DWP continues raising surcharges and cost adjustments on a quarterly basis. With these hefty adjustments, the Department does not require additional hikes. There are millions of dollars that can be earned by implementing Huron’s recommendations, by reducing inefficiencies and wastes in all of the Budget Units and by effectuating a productive work force.

The Resolution unanimously passed on January 5, 2008. It reiterates what we said on August 18, 2007, when we heard the Huron Report: How can DWP boost rates without an analysis of what is needed? The City Charter specifies that a City proprietary entity must have a five year survey and analysis. The Membership agrees. We ask that there not be another rate increase until the five year study is completed so that our Mayor, Council, Controller and Neighborhood Councils can make informed decisions.

Your help is needed to insure success. You are asked to do the following:

--Place the Resolution on your Agenda. Ask for a motion to accept the Resolution. Action Item is attached.

--Send the Resolution and the attached brief memo to your Councilmember.

--Please notify me when your Memo and Resolution have been sent.

There will be Committee and Council presentations by DWP and by us. Please consider participating in one or all of these sessions. Our strength is in our numbers.

Soledad