ALARCON DEMANDS DWP RATE CUT CITY OFFICIALS SAY FUNDS NEEDED FOR SECURITY.

Byline: Rick Orlov Staff Writer

State Sen. Richard Alarcon called Wednesday on city officials to rescind the 11 percent water rate hike approved earlier this year, saying it was illegal and immoral.

The Van Nuys Democrat, one of the major candidates challenging Mayor James Hahn in next year's election, sent a letter to Hahn demanding he immediately rescind the rate hike, which the city maintains is needed to fund security and infrastructure improvements.

``I, and the people of the great city of Los Angeles, look forward to your immediate rollback of the 11 percent fee increase for water services which is, in reality an improper and unlawful tax on the residents of Los Angeles,'' Alarcon wrote.

The letter also takes issue with the $279 million transferred this year from the Department of Water and Power to Los Angeles' general fund to help balance the city's $5.4 billion budget.

Alarcon noted that the DWP allocated 7 percent of its revenue to the city this year rather than its usual 5 percent, and that the difference - $60 million - equals the estimated amount to be generated by the rate hike.

But Deputy Mayor Julie Wong denied the rate increase was connected to the DWP transfer, and said Hahn raised rates as a last resort.

``He came to this reluctantly and only after he was convinced it was needed for the security of our water supply in this post-Sept. 11 environment,'' Wong said.

City Councilman Tony Cardenas, who chairs the council's Commerce, Energy and Natural Resources Committee, which had recommended the rate increase, said he did not want the issue to become part of the political debate during the mayoral election.

``In light of past and present security concerns involving the department, people need to stop playing political games with the water rate increase,'' Cardenas said.

``While the department is financially sound on the energy side, recent security reports lead me to believe the water side needs to continue to consistently improve its infrastructure.''

Dominick Rubalcava, newly reappointed as president of the DWP Commission, also defended the increase.

``We have to protect the water supply of the city and this was the first increase we've had in 11 years,'' Rubalcava said.

But at a news conference at Olvera Street, Alarcon - who served on the City Council before his election to the state Senate - said he saw the rate hike as a violation of the public's trust.

``It looks to me like they're selling a bunch of smoke and mirrors,'' Alarcon said. ``As mayor, I would fight to roll back these increases because I believe they are wrong.

``If we are going to rebuild public trust with the city, it has to start with being honest about what we are doing.''

The news conference was called to promote Alarcon's endorsement by Los Angeles City Community Relations Commission in the election against Hahn. Alarcon was the top choice, followed by former Assembly Speaker Bob Hertzberg, Councilman Antonio Villaraigosa and Councilman Bernard Parks.

Rick Orlov, [phone]

rick.orlov(at)dailynews.com