DWP HIKE PAST DUE? DELAY COSTS OT MILLIONS; PUTS SECURITY FIXES ON HOLD.

Byline: Beth Barrett and James Nash Staff Writers

Delays in raising Department of Water and Power rates have slowed implementation of a security system needed after the Sept. 11 terrorist attacks while costing millions in overtime to guard the city's water and power infrastructure, the Daily News has learned.

The DWP's outside security consultant, Richard S. Hahn, president of R. Hahn & Company Inc. in Seal Beach, said in an interview Friday that he briefed utility officials on the estimated cost of the system in April 2002 and Mayor James Hahn about a year ago.

The consultant, no relation to the mayor, said that if rates had been raised to provide the necessary revenue, the DWP would have made more progress on the proposed $30 million electronic surveillance system as well as covering reservoirs as a security measure or removing them from service at an estimated cost of $730 million.

Instead, the department has relied on personnel to patrol its properties - doubling security guards within a month or two of 9-11, DWP officials said in a recent interview.

Security also has been a factor in driving overtime, which jumped by 14 percent between 2000 and 2002. DWP employees racked up $89.2 million in overtime in the fiscal year that ended June 30, 2003, according to documents released to the Daily News under the California Public Records Act.

Four of the top 10 overtime earners were security officers.

Separate DWP budget documents show the utility's security budget increased from $10.9 million in 2001-02 to $24.1 million in 2002-03.

``In my view, it's not moving as fast as it should,'' the consultant said. ``I don't think it would be possible to have gotten the system up and running by this point in time at any event, but it's not as far down the road as I'd like to see, or they would.''

The security consultant said utility officials and the mayor understood the importance of upgrading security with an electronic surveillance system versus using more personnel - either contracted or staff paid overtime - to protect the utility's water and power facilities.

``There's no question (the mayor) understood the need to do this in a timely fashion. The mayor's primary concern was getting it done.''

DWP officials told the Daily News last week that they knew massive rate hikes would be needed during the secession campaign, but that former Deputy Mayor Troy Edwards and other city leaders warned against publicly pursuing the hikes during the emotionality of the campaign. Edwards, who resigned after appearing as a witness before a county grand jury into ``pay to play'' allegations, could not be reached for comment. He has denied wrongdoing.

The mayor acknowledged Friday that he was briefed on the security issues in March 2003 but remained unconvinced a rate hike was needed and asked the utility to continue to explore alteratives, his spokeswoman Julie Wong said.

The mayor, earlier in the day, described how he had rejected requests by DWP officials to raise rates shortly after his 2001 election and again, after the 2002 vote on secession.

``Where's the scandal?'' Hahn asked reporters during an unrelated news conference Friday.

``It wasn't long after I came in as mayor when I was approached by the Department of Water and Power and they said they wanted to increase water rates and I said no.

``They made a big presentation for me and they didn't convince me. In fact, they came in after the vote on secession and again tried to convince me to increase water rates and it took quite some time for me to come to that conclusion.''

DWP officials did not return phone calls Friday.

City Councilman Dennis Zine said council members should have been informed about the security study, which DWP officials previously said cost ``a few hundred thousand dollars.''

``I as a council member don't want to be surprised,'' Zine said. ``If there are legitimate security concerns, we want to be informed; we want to make sure it's done property. We don't want the water to be cut off from the city.

``If the mayor knew, it should have been brought to us. ... We shouldn't keep secrets when it comes to the precious water and power that runs this city.''

Councilman Tony Cardenas added, ``When city leaders and departments fear that ratepayers cannot handle the facts, they avoid taking the necessary actions to ensure public safety.''

The security consultant said additional revenue was always the key to beefing up the security system, beginning with the briefings of utility officials two years ago.

``It primarily is a revenue issue,'' the consultant said.

Had a rate increase been implemented sooner, ``it would have at least given them the budget, which would address procurement of equipment and manpower.''

The consultant said DWP officials took the security issue ``very seriously,'' and moved quickly to get a plan into place.

``They don't want to fumble the ball,'' he said of DWP officials, adding the biggest problem is ``how to explain to the public it will cost millions and millions of dollars.''

The electronic system of cameras, sensors, special locks and other features to keep intruders out of DWP facilities is superior to the system of guards now in place.

``A human being has his limits,'' the consultant said. ``No matter how well trained and alert they are, they're simply not as effective. They can't be at all places at all times. They can only do what they can do on patrol.

``An electronic system can do 100 percent of the perimeter 100 percent of the time. I think patrols are effective, just not as effective.''

The mayor said Friday it was the recent problems with the water system infrastructure along with the higher security needs that convinced him to support what is now an 11 percent water rate hike.

``We have to repair the infrastructure,'' he said. ``I'm now convinced we need a moderate rate increase and agree with the council that the DWP has to come back with a five-year plan.''

Beth Barrett, [phone]

beth.barrett(at)dailynews.com