DEATON DWP APPOINTMENT SHOULD CAUSE FEW RIPPLES.

Byline: Rick Orlov and James Nash Staff Writers

Appointment of the city's most powerful bureaucrat to head the Department of Water and Power likely will sail through the commission overseeing the agency next week and face only token scrutiny from City Council members concerned about environmental issues, officials said Friday.

After a year of leaving the DWP's leadership in limbo, Mayor James Hahn suddenly announced Thursday that he was naming Chief Legislative Analyst Ron Deaton to run the beleaguered utility. The Hahn-appointed DWP commission plans to formally appoint Deaton on Tuesday.

The agency has been hit by criminal investigations, critical financial audits, threats of lawsuits over its massive rate increase for water and controversy over how it spends millions of dollars in public funds.

Hahn's decision to nominate Deaton, who amassed enormous power as the top adviser to the City Council for more than a decade, developed over the past several months in a bid to stabilize the agency amid increasing criticism and the long-term illness of General Manager David Wiggs.

Hahn and DWP officials were concerned about the continued pummeling of the agency and what that was doing to its reputation, credibility and morale. Hahn was urged at least three months ago to consider appointing Deaton, officials said in interviews.

``Ron Deaton clearly loves the DWP and the city,'' one official said. ``There has been talk that he was looking to retire soon and this is an opportunity for us to use his institutional knowledge and skills. You could look all over the world and you are not going to find someone with Ron Deaton's knowledge.''

Wiggs, the general manager brought in four years ago to resolve issues left following energy deregulation and the tenure of former General Manager David Freeman, was diagnosed with cancer in February and forced to take off from his $311,000-year-post to undergo treatment.

``My contract was coming up at the end of this year and I just need to devote time to my family and recuperation,'' Wiggs said. ``I think the mayor is making an excellent choice with Ron Deaton. In that job, you need someone who knows the politics and the ins and outs of City Hall. No one knows them better than Deaton.''

In the meantime, the agency was being confronted with a series of other issues that resulted in the naming of, first, Frank Salas as interim general manager and more recently, Enrique Martinez.

Dominick Rubalcava, president of the Water and Power Commission, was one of the first to talk with Hahn about Deaton, according to various officials.

``The agency was going from one crisis to another and Rubalcava wanted to bring in someone the council respects and who was tough enough to head off the criticism,'' an official said. ``Deaton accomplishes that and will help groom the next generation of DWP management.''

Rubalcava said he would not discuss any of his conversations with the mayor, but added that he supports Deaton's selection.

Deputy Mayor Doane Liu said the mayor decided on his own to approach Deaton this past week after Wiggs wrote he would not be returning to the post.

``The mayor has known Deaton for all of his career and respects him. He feels that Deaton will bring instant credibility to the agency.''

Liu said there was little in the way of negotiations with Deaton once the job was offered.

``The mayor outlined his concerns and the need to work with the City Council and neighborhood councils, while working on environmental issues,'' Liu said.

Deaton, who has worked for the city for nearly 40 years and who is known for his independence, also was said to have sought assurances that he would be given the freedom to run the agency as he sees appropriate.

However, several council members indicated the Deaton appointment will face at least some questioning.

Under the City Charter, the Water and Power Commission appoints its general manager, subject to council confirmation.

Councilman Tony Cardenas, who chairs the council committee that oversees the DWP, said he wants to know about Deaton's commitment to renewable energy sources, his feelings on the relationship between the DWP and City Hall and the public, and his views on the working relationship between the DWP and its employee unions.

``I have a lot of respect for (Deaton),'' Cardenas said. ``I think he's a very intelligent, capable individual.''

Councilman Eric Garcetti said he also has concerns over environmental issues and how Deaton will respond.

``A lot of us were pushing the agency last year for a more environmental-friendly program, and some felt it was Mr. Deaton who blocked it,'' Garcetti said.

In particular, questions will focus on Deaton's support of the use of coal to fuel generating stations.

``We're going to have some hard questions,'' said Lee Wallach, co- chairman of the Los Angeles Interfaith Environmental Council. ``He is far from an environmentalist.''

The nomination also raised the opportunity for council members to change the direction of the CLA office - which has developed over the years into a source of power in dealings with the Mayor's Office and other city departments.

``I think we ought to take advantage of this and spend time to figure out what we want in a legislative analyst,'' Council President Alex Padilla said.

Deaton was named CLA in 1993, a job for which he is paid $286,724 a year, following the election of Mayor Richard Riordan.

``Before then, there was a more collegial approach between the Mayor's Office and the council,'' said Councilwoman Cindy Miscikowski, whose term in office expires next year and is considered a contender for the post.

``After Riordan became mayor, relationships cooled and the council needed a strong representative and Ron Deaton became that.''

In addition to Miscikowski, others mentioned as potential candidates for the post include top Deaton assistants Gerry Miller and Sharon Tso as well as Marcus Allen, who had worked in the office and now serves as chief deputy to Controller Laura Chick.

Rick Orlov, [phone]

rick.orlov(at)dailynews.com

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2 photos

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(1 -- color) DEATON

(2 -- color) WIGGS