Tuesday, July 30, 2013

MORE DIVERSION OF GWP FUNDS


Speech before Glendale City Council
 

Mayor Weaver, as the longest serving member of our city council you have known for years of the crumbling and ageing of the Grayson Power Plant. Stand- in Councilman Quintero and recently re-elected council members Friedman and Najarian have also known about the ageing power plant long before the April election, beefore the recently approved 2013 budget made possible by millions of dollars in borrowed money in the form of municipal bonds, increased fees and taxes.

And long before transferring another $21 million from Glendale Water and Power to the General Fund into the pockets of our city union employees.  Transferred money is primarily being used to pay for our inflated unsustainable salaries, pensions and benefits of our city union workers.  

IN 2001 GWP ELECTRICAL FUND had over $198million and the WATER FUND had about $46million totaling about $244million. Today, these funds are virtually gone. Where did this money go?

Previous GWP Mgr, Glen Steiger, was fired under the pretext of double dipping his expenses. This was a misleading public statement by management. The truth was Mr. Steiger, the best employee that money could buy, was fired because he had a stake in the Commodity Market with GWP’s money. That is, the rate payers money.  Under his leadership, Mr. Steiger, lost over $120 million of GWP money trading futures in electricity and gas. No public announcement was made of his actual dishonesty. It was all swept under the rug just like the missing $244 million that was in the GWP back in 2001.

Today’s leadership of GWP is being run by two individuals who have no background in running a utility company. Mr. Steve Zurn who has a political science degree and no engineering background.  Then, Mr. Steve Lynn, no engineer, but a lawyer who previously worked under former City Attorney, Scott Howard. At community forums Mr. Lynn would answer questions like an attorney, not as an engineer. 

In 2013, at a GWP community meeting being held at our local Police Station our City Attorney, Mike Garcia, and the people’s attorney, Harry Zavos, debated City Charter changes A, B and C. People were angry that night when they asked our new City Manger, Scott Ochoa, where did the $244 million GWP money go? 

Council members continue to act surprised, but they have been cannibalizing GWP for years and passing so called balanced budgets from borrowed money, new and increased fees and taxes. Recently, at the 11th hour, our city manager and council members had the audacity to tell the public we needed to set aside $5million for emergency plant repairs without any competitive bidding.    

Before the April election, even the representatives from the International Brotherhood of Electrical Workers (IBEW) came before the council while negotiating and reported the Grayson Plant needed repairs and they were against the large transfers of money from the GWP to the General Fund.

Because of diversion of funds from GWP and the miss-management of city resources, council now wants to increase our electrical rates approximately 30-70% over the next five years. Plus, another $60 million bond is in the planning stage to keep the utility afloat.  

In a recent staff report according to the Federal Energy Regulatory Commission, a penalty of up to a million dollars per day, per penalty will be assessed if our utility company does not fulfill its responsibility.     

Our city fathers would be turning over in their graves as they never envisioned the GWP becoming a “cash cow” for the city unions’ salaries and pensions.  As usual lawyers, Ara Najarian, will do his Dog and Pony Show and suggest council sell GWP to Southern California Edison for councils many management mistakes.
    
 Mike Mohill

Monday, July 15, 2013

DOG AND PONY SHOW**



Let’s hear it for the 2013 DOG AND PONY SHOW of Glendale Water and Power Company. For the past couple of weeks, our local utility company has been instructed by our city council to reach out to the community and explain how council and GWP were going to circumvent proposition 26.  Proposition 26 requires 2/3rd voter approval when a city imposes any rate increases related to property rights.  The proposed electric rate increase will be approximately 30% compounded over the next five years and only on the kilowatts used, plus additional fixed costs.  In addition, when the variable green fuel commodity is added to the 30%, plus the fixed cost, the actual electrical rate increases can be 70% or more over the next five years.  Also, from 2007-2015 water rates will have gone up 51%.

With the re-election of council members Friedman and Najarian together with Mayor Weaver and stand in Councilman Quintero, all are on board for the 2013 Glendale Water & Power Dog & Pony Show working its way around town.

The GWP proposed electric rate increases in 2012 were postponed, because council members Friedman and Najarian were up for re-election in April.

Council members Friedman, Najarian, Quintero and Weaver are all beholden to the unions for “pay to play” politics as the unions have given these council members countless thousands of dollars in campaign money through the years for their continued support. (Salary: Parking Mgr. $96,060: Retired Police Chief, Ron De Pompa, just retired at age 57 with an annual LIFE TIME pension of $197,000). 

As millions of dollars continue being drained out of the GWP into the GENERAL FUND to primarily pay for city workers salaries, pensions and benefits, council approved a $35 million bond last year and another $60 million bond is being discussed now to keep the utility company afloat. 

During the April election,  Glendale Police and Fire Fighters Associations,  were doing what unions do best…getting out the vote for their candidates in order to receive  as much salary, pensions and benefits from the taxpayers as possible.

The union supported candidates were well funded and well organized compared to their challengers. 

At candidate forums and on campaign mailers  it was stated to the voters and local merchants if they wanted to have their electric and water rates increased, fees and taxes increased, as well as new bonds, please, by all means,  support and vote for the incumbent candidates…And the voters did!

What recourse do the blinded voters have now? NONE! Mission Accomplished.

Mike Mohill