Paul Clinton
GLENDALE -- Asserting the agency's primary goal is to set an equitable
rate structure for its member cities in the future, Metropolitan Water
District officials said they have no objection to Burbank conducting an
audit into the financing of its new headquarters.
In an interview with the Leader, MWD spokesman Adan Ortega denied the
water agency improperly borrowed money from a surplus fund to finance the
$130-million building -- as Burbank officials have charged. However,
despite an internal MWD audit that determined the agency followed its
policies, Ortega acknowledged that questions remain about the building
that was completed in 1998.
"It's not the definitive word," Ortega said of the MWD audit. "As long
as there are questions about it, it warrants scrutiny."
On Dec. 21, the City Council voted to conduct an independent audit of
the agency, Burbank's second in less than five years. Led by Councilman
Bob Kramer, city officials have accused the agency of risking rate hikes
by dipping into its Water Rate Stabilization Fund -- which provides a
buffer during drought years -- to pay for the building.
Former Burbank Mayor George Battey, Burbank's sole representative on
the 51-member MWD board, said he supported the city's audit of the agency
but he denied, as Kramer and others have claimed, the building was paid
for improperly. He agreed with Ortega that more pressing issues faced the
agency.
"Based on the audit, we'll put this thing to bed for good," Battey
said. "We need to focus on what the rates will be for the next 30 years."
Kramer, who has blasted the agency as arrogant and out of control in
two columns in the Leader, reiterated his contention the agency did use
reserve funds for the headquarters building.
"I don't think they're telling us the truth," Kramer said Thursday.
"If we don't watch the MWD, they're going to raise rates."
Burbank's audit is expected to be complete in April, officials said.
The city will pay Florida-based Barrington-Wellsley Group $27,500 to
track the headquarter's financing and determine whether the MWD could
justify a rate hike, Kramer said.
Burbank is one of 11 cities that founded the Metropolitan Water
District in 1928. The agency now provides drinking water to 27 cities and
water districts in Southern California. It supplies approximately 50% of
the city's water.
Acknowledging the agency has misstepped at times, Ortega said MWD is
committed to acting in the best interest of its customers in Burbank and
everywhere else it delivers water.
"We've gone through some real interesting scrutiny here," Ortega said.
"Metropolitan is taking stock. We're taking inventory."
