Governance in a Changing Market: The Los Angeles Department of Water and Power

By Walter Baer; Edmund Edelman et al. | Go to book overview

Endnotes
1
Figures are for the fiscal year ending June 30, 1999.
2
The origins and history of DWP are discussed further in Appendix A and more fully in Ingram (1994).
3
As of this writing, however, DWP is earning a good profit by selling power from its generating plants to the CalPX.
4
In fact, DWP officials have always been concerned about competitive pressures from Southern California Edison. Under its zonal pricing system, SCE has set lower rates near Los Angeles city limits than in other areas. In Mayor Fletcher Bowron's administration in the late 1930s, SCE played a major behind-the-scenes role in securing a 5 percent, “surplus” transfer from DWP to the city general fund. Thus, DWP has had to be on its competitive guard (Erie, forthcoming).
5
We also did not examine possible restructuring or governance changes resulting from separation of DWP water and power operations or secession of the San Fernando Valley from the City of Los Angeles.
6
See also McCarthy et al. (1998).
7
The general manager is called “chief engineer” in the current charter and traditionally has had an engineering background. Controversy arose in the mid-1990s when William McCarley, who did not have an engineering background, was appointed as DWP general manager. However, the city attorney supported the legality of McCarley's appointment. The new charter removes the engineering qualifications for the general manager.
8
By charter, the commission—not the general manager—heads the DWP, although its powers are circumscribed as described in this chapter. The commission has “the power … to make and enforce all necessary and desirable rules and regulations for the exercise of powers and the performance of the duties conferred upon” it by the charter, “subject to the provisions of this Charter and to such ordinances of the City” that do not conflict with the charter (Old Charter, 1997, Section 78).
9
Previously, council approval was required to remove a commissioner.
10
“The board of each Proprietary Department shall appoint the general manager subject to confirmation by the Mayor and Council, and shall remove the general manager subject to confirmation by the Mayor” (New Charter, 1999, Section 604(a)). However, the general manager may appeal his/her removal and be reinstated by a two-thirds vote of the council within ten days of the appeal (New Charter, 1999, Section 508(e)).
11
“As a general rule, anything requiring the approval of the city council should first be sent to the mayor for a review pursuant to Executive Directive 39” (emphasis in original). (Dickenson, 1996.)
12
Another stated purpose for ED39 is to give the commissions a citywide, independent analysis of departmental proposals. The mayor also wants to avoid possible embarrass

-57-

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Governance in a Changing Market: The Los Angeles Department of Water and Power
Table of contents

Table of contents

  • Title Page *
  • Preface iii
  • Contents v
  • Tables vii
  • Summary ix
  • Acknowledgments xvii
  • Acronyms and Abbreviations xix
  • Chapter 1 - Introduction 1
  • Chapter 2 - The Current Dwp Governance Structure 7
  • Chapter 3 - Decisionmaking and Operational Problems under the Current Structure 13
  • Chapter 4 - Other Governance Models for Municipal Utilities 23
  • Chapter 5 - Governance Options for Dwp 35
  • Chapter 6 - What Comes Next? 45
  • Appendix - A Brief History of Dwp 47
  • Endnotes 57
  • Bibliography 63
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