CITY SLAPS NEW LIMIT ON WHAT DWP CAN SPEND, AND WHAT FOR.

Byline: - Rick Orlov

Reining in spending by the Department of Water and Power, the Los Angeles City Council adopted guidelines Tuesday to control how money is spent by the utility, which has been criticized for its sponsorship of parties and other events.

``We're here because there was an assembly line, a long line of invoices that came to my office that were for parties and DWP receptions, concerts, tickets, tables at luncheons,'' Controller Laura Chick told the council.

``This is not about one-fourth of 1 percent of a multibillion-dollar budget. It has never been about holding up payments. It is about having a policy in place about what the DWP pays for.

The council's 14-0 vote reduces the amount that General Manger David Wiggs can approve without review from $150,000 to $50,000, and mandates that a new approval process be developed for the funding of various events and promotions.

Chick raised the issue earlier this year when she questioned a $27,000 bill for a Music Center party dealing with ``green power'' and refused to approve the payment of $600,000 in bills for other events, forcing the City Council to order the payment.

DWP officials agreed with the changes proposed by Chick and Chief Legislative Analyst Ron Deaton as a way to increase accountability for the agency.

Councilman Tom LaBonge, who worked for the DWP before his election, praised the proposal.

``While the Department of Water and Power does community outreach programs, we needed to put a spotlight on this issue to make sure the money is spent in the most efficient and economical fashion,'' LaBonge said.

Deaton said the new policy places more responsibility on the utility's management.

``This provides a context ... in which we can look at the individual contributions in a context of how they fit in with the purposes of the DWP,'' Deaton said.

The proposal will not change membership fees the DWP pays to various groups such as the Valley Industry and Commerce Association, which the utility helped create.

Councilman Eric Garcetti questioned whether that was appropriate since VICA has become increasingly active politically over the years.

Deaton said the city insists that its money be used for general purposes for such groups and not be involved with political activities.