LA Watchdog
By Jack Humphreville
 The Los Angeles Times editorialized about Mayor Villaraigosa’s “uncomfortable political alliance of environmentalists and unions that has produced bad policy” and the “dubious” benefits to the environment and consumers.
The Times referenced three deals: the AnsaldoBreda rail contract, the Clean Trucks Program at the Port of Los Angeles (“POLA”), and Measure B and the 400 megawatts of In Basin Solar Power.
For openers, what’s not to like about good paying green jobs, less pollution at the Port, and clean in basin solar energy? The people of Los Angeles are in agreement with the environmental community.
But it is the excesses caused by hidden agendas, backroom deals, personal greed, and political ambition that have resulted in heightened levels of controversy and mistrust. To say nothing of absolute disregard for the higher costs that will burden MTA riders, importers, shippers, tax payers, and especially the DWP Rate Payers, for many years to come.
And with the projected budget meltdown next year where the City has to address a $500 million operating deficit by reducing its work force and performing fewer services for its citizens, and a guesstimated $15 billion shortfall for unfunded pensions (not including the correction for the “8% myth”) and deferred maintenance and IT, it is essential that the City have credibility, especially since any “fix” will more than likely require a vote or votes to approve new taxes. The Mayor is a critical key to that credibility.
In the case of the failed AnsaldoBreda deal, the Mayor, by promising thousands of high paying union assembly jobs in the heavily CRA subsidized Green Tech Corridor, gained the support of the influential ($$$) Maria Elena Durazo of the County Federation of Labor and the environmental community. The politician-dominated MTA Board, contrary to management’s strong advice, entered into an ill conceived deal with an ethically challenged but well connected Italian company which had already failed to deliver rail cars on time, on budget, and to specifications.
However, the real money in this deal was not the assembly of overweight rail cars for the MTA, but the billions in profits to be harvested by Stephen Bing’s Shangri La Construction company from the high speed rail lines contracts, all to be financed by government grants and tax payer guaranteed bonds. Another Chinatown in the making.
But this deal blew up at the last minute when AnsaldoBreda was unable to meet the reasonable financial standards imposed by the MTA Board.
At the Port, the Clean Truck Program, with the strong backing of the environmental community, has been very successful. According to the mayor, the “Port of Los Angeles will meet 80% of its emission reductions nearly three years ahead of schedule.” But you would never know this reading the litigation between POLA and the American Trucking Associations (the “ATA”) which involves the Mayor’s attempt to force the unionization of the independent owner operators by the Teamsters and their legislative leader, Barry Broad.
While the Port of Long Beach has settled with the ATA, POLA continues to pursue this unnecessary litigation, resulting in a damaged reputation and the economically devastating diversion of cargo in these tough economic times. But the cost of litigation is hardly frivolous. To date, POLA has spent $5 million of OUR money with an additional $2-3 million budgeted for litigation and lobbying.
When asked, Cindy Miscikowski, the politically appointed President of the Board of Harbor Commissioners, dismissed these hefty legal bills and the diversion of cargo as non issues!
And of course, we are all too familiar with the stranglehold that Boss D’Arcy and the IBEW union have on the Department of Water and Power because of his generous campaign contributions and bullying tactics.
The IBEW LABOR PREMIUM already costs Ratepayers hundreds of millions of dollars a year and is going to increase because of the new arrangement that will increase DWP wages by an amount up to 19.25% over a four to five year period. At the same time, City workers are taking a haircut.
As if this wasn’t enough, the Mayor is supporting the Son of Measure B (the “SOB”), the newly reconstituted plan for the 400 megawatts of In Basin Solar Power.
DWP, again with the support of the environmental community, has proposed to retain the work in house, using its inexperienced DWP management and notoriously inefficient IBEW construction work crews.
This unsavory, self serving relationship will cost Ratepayers $1-2 billion EXTRA (the "IBEW SOLAR PREMIUM") than if the work was done on a fixed price basis by experienced, bonded private contractors using skilled Building Trade workers.
This IBEW SOLAR PREMIUM is further increased by another billion or two because of the extra interest expense, the 8% power transfer fee, and the 10% City Utility Tax.
Ironically, fewer jobs will be created under the auspices of DWP’s Closed System compared to an Open System using Los Angeles’ “burgeoning private solar industry” that can service the rest of the world. Do you think DWP is going to be building photovoltaic solar systems in Arizona?
What is particularly galling is that the Mayor, in supporting the SOB, has the audacity to reject the will of the voters who rejected Measure B, despite the millions in campaign contributions and dirty tricks against a “ragtag group of fringe activists,” now tagged by interim General Manager David Freeman as a “screaming minority of bellyachers.”
Now is the time for the City to start cleaning up its act. No more AnsaldoBreda contracts. Drop the litigation at POLA. And bid out the in basin solar work. It is actually easy once the City learns how to say NO to the very special interests with very deep pockets.
If the City does not have the trust of the voters, how does it expect to close the projected $500 million operating deficit and fund the $15 billion of unfunded pensions and deferred maintenance?
The serial abuse has to stop!
(Jack Humphreville is a publisher, the President of the DWP Advocacy Committee and the Ratepayer Advocate for the Greater Wilshire Neighborhood Council. He can be reached at
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CityWatch
Vol 7 Issue 92
Pub: Nov 10, 2009
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