Trevor Grimm shows up at DWP NC Press conference. News is announced of the rate Prop 218 illegal water surplus transfer fees from DWP into City Hall's general fund.
They are using Prop 218 as the litigation tool. (The $60 million surplus rate transfer is a violation of of the Proposition.)
City Council was put on notice of this pending lawsuit (on the record) during the March 25, 2008 Council meeting regarding the DWP rate increase.
The lawsuit is being conducted by the Apartment Owners Association regarding these money transfers, stating the rate increases must be postponed until the results of the lawsuit.
Zuma Times inside sources say that Councilmembers want to wait and see the results of the lawsuit, because it the City loses -- and DWP gets to keep the $60 million (they have set aside in case they LOSE, and have to pay $60 million in surplus rate money to the City of Los Angeles).
I guess certain Councilmembers are feeling that if the big reason they are claiming they need to increase DWP rates by 20% over the next year or two is because of this lawsuit...well if they don't have to pay the $60 million after all...I'm sure David Nahai will be wishing Susana never hooked him up with the job.
Nahai's gonna throw a bigger Rainman fit than a ten year old girl who was just told by her parents that she can't go to the Hannah Montana concert because they changed their mind. (LOL!)
ZumaTimes.com
Friday, March 28, 2008
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