DWP SEEKS REDRESS IN SCOOTER DEAL BINDING ARBITRATION DEMANDED OVER LOAN.

Byline: Beth Barrett Staff Writer

The Los Angeles Department of Water and Power filed on Monday for binding arbitration to resolve a dispute with a Hawaiian firm over repaying $1.88 million on a controversial unsecured loan to develop electric scooters and rechargeable battery stations.

In its demand for arbitration, the Department of Water and Power named Personal Electric Transports Inc., and up to 10 additional unnamed parties.

``We filed to get our money back,'' Deputy City Attorney Dirk Broersma said. ``We're very serious about getting the money ... it's almost $2 million. They clearly defaulted. What do they expect us to say - Oh, well?''

Company CEO Tony Locricchio said he welcomed the DWP's arbitration demand.

``We'll win that arbitration,'' Locricchio said. ``We're looking forward to having an independent party'' make the decision.

PET, based in Kailua, notified the DWP in a July 6 letter that it was suspending payments because of alleged contract violations. It accused the DWP of delaying by six months a final $150,000 loan payment due on the completion of 100 scooters. DWP officials have denied that the payment was improperly delayed.

In interviews and documents, Locricchio said the DWP's actions had significantly hurt his business plan, and last month he asked to delay interest payments a year and a balloon principal payment by two years to March 2008. The original loan was for $1,875,000.

Broersma said binding arbitration was part of the original contract should a dispute arise. Arbitration usually is fairly quick, though it does allow some time for discovery.

Former Mayor James Hahn's administration, the commissioners he appointed to the DWP board, along with the DWP's union, backed the loan over the objections of top city officials, including former Chief Legislative Analyst Ron Deaton, now the utility's general manager.

Beth Barrett, [phone]

beth.barrett(at)dailynews.com