DWP VOTES TO HIKE WATER RATES BY 18 PERCENT.

Byline: James Nash Staff Writer

The Los Angeles Department of Water and Power board voted Wednesday to hike water rates by 18 percent over two years, the same day a divided City Council agreed to let the DWP spend $175,000 on a Rose Parade float.

Although DWP officials maintained that small expenses such as the float did not factor into the increase, some Los Angeles City Council members said the expense does raise questions at a time when the public utility is asking for a rate increase and withdrawing a $100,000 contribution to the Economic Alliance of the San Fernando Valley.

``The message it sends is a very blurred message: that we don't have funds for this, but we can do something on the other hand,'' said Councilman Dennis Zine.

``When we're looking at all the (newspaper) articles being published about the lack of funding for all the things we want to provide, I can't and won't support this,'' he said.

Zine was joined by Wendy Greuel and Jack Weiss in voting against paying for the parade float. The measure passed with 11 votes.

Officials from the DWP and city attorney's office warned that with the float already well under construction for the Jan. 1 parade, pulling the funds now might bring a lawsuit from the float builder, Phoenix Decorating Co.

The float, a 30,000-pound replica of a boombox to be covered with roses and carnations, will be the only city of Los Angeles entry in the parade. This year's Rose Parade theme is ``Music, Music, Music.''

Phoenix Decorating Co. President Bill Lofthouse said Wednesday that his company was nearly done with the float, except for affixing flower petals in the days before the parade. He said he did not know if the company would have sued the city or DWP for nonpayment.

``Two weeks before the parade is almost ridiculous for something like this to happen,'' Lofthouse said. ``It's an unfortunate political situation, that's all I can say.''

Hours after the council's decision, the Board of Water and Power Commissioners, a mayor-appointed panel that oversees the DWP, voted to increase residential water rates by 11 percent next year and another 7 percent in 2005.

DWP officials estimated the average residential water user would pay $4.15 a month more after the increases take effect.

The water increase has drawn fire amid reports that DWP officials have spent lavishly on travel, parties and public-relations contracts and that they failed to act on a comprehensive management audit that could lead to cost savings.

But DWP board members insisted Wednesday that the increase is needed to further improve water quality and to develop measures to protect the water supply from terrorism.

``I think there has been a time for a number of years where we have lived off the infrastructure investments of our fathers and grandfathers,'' said Dominick Rubalcava, president of the Board of Water and Power Commissioners.

Three residents spoke at the meeting on the rate increase, with all three endorsing the proposal.

``We take the safe and plentiful water supply for granted in Los Angeles,'' said Mary Anne Cook, president of the Silver Lake Residents Association. ``It is cheap.''

The rate increase is expected to generate $24 million in the 2003-04 fiscal year and $65 million the following year.

The increase still needs the approval of the Los Angeles City Council.

James Nash, [phone]

james.nash(at)dailynews.com

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Photo:

(color) The L.A. DWP float for the Rose Parade is shown in an early stage of completion.

Charlotte Schmid-Maybach/Staff Photographer