LADWP Statement Regarding Payment to PA Consulting
|Yesterday, on the advice of counsel, the Board of Water and Power Commissioners deferred action on an agenda item that if approved would have authorized payment to PA Consulting in the amount of $599,200 for work completed in connection with review of the LADWP’s Energy Cost Adjustment Factor (ECAF) request. The item would have increased the total amount paid to PA Consulting on this contract to $850,000.
“The LADWP doesn’t wish to relive or revisit the ECAF saga. On the advice of the City Attorney’s Office, the Board of Water and Power Commissioners deferred action on this matter because the LADWP cannot pay PA Consulting’s bill until the City’s Chief Legislative Analyst provides previously requested documentation on who authorized the expenditures and what work was completed. This information will assist in determining whether the payment is a proper use of Department funds under the City Charter and in developing a recommendation regarding the payment request.
The City Charter defines the permissible appropriations the Board can make and it is the City Attorney’s Office role to ensure the Charter is followed.
In May 2010, the City Council authorized the appropriation of an additional $600,000 of work to be performed by PA for work that had in fact, already been performed without any contract amendment authorizing the work. LADWP was never asked by anyone in the CLA’s Office or City Council to authorize payment for any amount above the initial $250,000.
The total PA consulting bill for services will cost our customers over $1 million and the LADWP Board cannot authorize payment until the city attorney signs off on the resolution.
Once LADWP and City Attorney’s Office have the appropriate documentation, the payment request can be properly presented to our Board for consideration.”