DWP TO PULL PLUG ON JOBS; WORKERS GET MEMO, VIDEOTAPE ON LAYOFFS.

Byline: Rick Orlov and Peter Hartlaub Daily News Staff Writers

With a quick ``Howdy'' and no apologies, Department of Water and Power General Manager S. David Freeman informed employees by videotape Wednesday that about 2,000 of the utility's 9,000 workers will lose their jobs.

DWP employees received the video and a six-page memo at work, promising all layoffs would be done by February, but most of the workers had learned of the proposed layoffs by reading the morning newspaper.

``This is just wild,'' said one worker, who joined others around a television monitor at the downtown office. ``He's been here less than two months and he's laying off people who have been here 25 years.''

But Freeman insisted his proposal was designed to keep the DWP - the nation's largest municipal utility - in business once deregulation of the electrical industry takes full effect in the year 2000.

Freeman predicted the cutbacks would save hundreds of millions of dollars, allowing the agency to pay off its $4 billion debt in five years.

``This is not a dismantling of the DWP,'' Freeman said at a news conference. ``This is preparing the DWP for the future.''

Details of Freeman's plan show he intends to transfer many of the 1,800 workers from the Anthony Office Building at 850 Arleta Blvd. in Sun Valley to the department's downtown office.

``We will be looking to sell or lease that building out and finding other facilities for customer service in the (San Fernando) Valley,'' Freeman said. ``With eliminating these jobs (downtown), we will have space for the other workers to come up here.''

Employees at the 4-year-old Sun Valley building were stunned and confused by the announcement.

``I think the morale problem was greatly intensified (Wednesday),'' said one manager, who asked not to be identified.

Sun Valley Chamber of Commerce President Dennis O'Sullivan is one local businessman who wouldn't be sorry to see the DWP workers leave.

`` `So what?' was the response to DWP coming into the neighborhood,'' said O'Sullivan. ``They didn't seem to spend money in the area that they work.''

With his white cowboy hat on a table behind him, Freeman opened his video presentation with ``Howdy,'' then quickly got to the point: About 2,000 viewers wouldn't have a job with DWP come springtime.

``Well I've been your general manager now for almost six weeks and it's time that we move into action in order to become competitive,'' Freeman continued. ``We're kind of behind the other utilities and we need to play catch-up ball.''

The memo didn't mention the layoffs until the fourth page, claiming the eliminations are needed to avoid a ``death spiral'' that could result in a taxpayer bailout or bankruptcy.

The memo and video were filled sentiments of hope for a brighter future, but offered nothing in the way of sympathy or thanks for those who were about to be eliminated.

A Northridge woman, who works in water quality and preferred to remain anonymous, said the memo and video were ``terrible'' gestures from a department already filled with disgruntled employees.

``I have friends that are now putting applications in for industry jobs,'' she said. ``They feel the reason why they're not getting calls is because DWP has such a bad reputation.''

Bob Duncan, head of the Engineers and Architects Association whose members are expected to be the hardest hit, said his group will fight Freeman and his plans to reduce the work force.

``We know some of this is inevitable,'' Duncan said. ``But we will fight all the way to make sure this plan doesn't take place. We had an offer on the table last year to soften the blow and the city ignored it once there was a change in the General Manager's Office.''

This is the second round of job cuts for the DWP in four years. Earlier, it had eliminated 1,500 jobs through attrition and buyouts.

Freeman said cutting the jobs is part of an overall effort to reduce expenses and pay off more than $4 billion in debt the agency has accumulated, primarily from two projects.

They are the Intermountain Power Project in Utah, with outstanding costs of $3.2 billion, and its association with the Southern California Power Project Authority, with a $1.3 billion debt.

``Everything we will be doing is to cut, cut, cut,'' Freeman said.

Other DWP workers said they weren't sure what to make of Freeman's proposal.

``We all knew there would have to be cuts, we just didn't think it would be so many after what we went through the last time,'' said Katherine Rubin, an environmental scientist with the DWP since 1989.

``I'm sure I'll be impacted in some way. I just don't know how yet.''

The Freeman plan met with general support from city officials, especially his proposal to freeze residential electricity rates at currents levels and to institute a 5 percent reduction in 2003.

``I think in the end it will have to be approved,'' said City Council President John Ferraro. ``We have a great deal at stake - the survival of the DWP. Consider the consequences if we don't make these hard decisions.''

The only opposition to the layoff plan came from Councilman Mike Hernandez.

``There are places in this country, in Mexico, in Central America where the DWP could be bidding for work and keep these people on,'' he said.

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PHOTO Department of Water and Power's general manager has announced the utility hopes to lease or sell its Sun Valley site.

Myung J. Chun/Daily News