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FOR IMMEDIATE RELEASE Contact: Claire Bartels

August 15, 2013 (213) 978-7200

Los Angeles City Controller Details


DWP Wages Boosted by Overtime & Bonuses
LOS ANGELES – City Controller Ron Galperin today released a new comprehensive online
database detailing L.A. Department of Water & Power wages boosted by overtime and bonuses –
with actual earnings of each of the municipal utility’s nearly 10,000 full-time employees in the first
half of 2013.

Among the findings:

 More than 86% of DWP workers received extra earnings above their approved base – and
DWP employees overall earned an average of 16.6% in overtime, bonuses and other
supplemental pay. By comparison, L.A. Police and Fire Dept. employees earned 9.2% in such
extra earnings, and the bulk of civilian employees earned just 1.2% over their base salaries
from January through June 2013.

 In the first six months of 2013 alone, DWP employee’s extra earnings totaled $77.3 million. If
these extra earnings are paid out at the same rate in the second half of 2013, the projected
cost for the year could be expected to exceed $155 million -- or nearly $15,816 in average
extra compensation for each DWP employee.

 More than 35% of DWP’s full-time employees earned more than $50,000 in base approved pay
in the first six months of 2013. With extra earnings, however, more than 58% of DWP’s
employees, in fact, earned more than $50,000 in the first six months of 2013 – putting them on
track to make more than $100,000 a year. This compares to 33% of L.A. City Police and Fire
Dept. employees, and 22% of L.A. City civilian employees.

With the City’s Executive Employee Relations Committee (EERC) and DWP’s labor
representatives in the midst of negotiating a new contract that will set most of DWP employee
salaries for the next several years, the Controller’s report and database was assembled to provide
real-time and detailed information that is now available to the negotiators and to the public.

“Making DWP and City employees’ salary information readily available to the public on an ongoing
basis is vital to full transparency in government,” said Controller Galperin. Further, Controller
Galperin said, “Angelenos deserve the most cost-effective services that the DWP can provide.
Higher expenses mean higher rates and less money for much-needed infrastructure
improvements.”

Other findings include:

 The Controller’s Office has identified at least 616 distinct pay codes used by DWP that can
modify an otherwise approved base salary, many of which were a part of previous
compensation and work agreements. These include various types of overtime, hazard pay,
reimbursements for meals, and bonuses for, among other things, inclement weather, cement
work and operating special equipment.

 DWP employees on average earned 20.8 percent in higher base pay (before extra earnings) as
compared to other City workers generally. With extra earnings, DWP employees, in fact, were
paid on average 37.2% from January to June more that non-Police and Fire Dept. civilian
employees, and 29% more than the average compensation for Harbor and Airport employees.

 Side-by-side comparisons of specific job classifications shared between DWP and other City
departments further detail disparities in base approved pay (again, before extra pay). The
Controller’s now-searchable database of DWP’s many job classifications, includes specific
comparisons such as:

 Tree surgeons at the Bureau of Street Services are eligible to receive base pay of
$49,548 to $61,554 annually – vs. $67,818 to $84,250 at the DWP – 30% more.
 Custodians at City Hall are eligible to receive base pay of $32,239 to $40,048 vs.
$43,848 to $54,497 at the DWP – 26% more.
 Garage attendants at City-owned garages and lots are eligible to receive base pay of
$39,776 to $49,402 vs. $49,674 to $61,721 at the DWP – 20% more.
 Accountants (Level I) working for the City are eligible to receive base pay of $49,841 to
$61,930 vs. $66,231 to $82,288 at the DWP – 25% more.

DWP currently has 9,820 full time employees, with a total annual payroll of $932,990,811.
Separate from the DWP, the City and its other departments had 36,082 full-time employees as of
June 30, 2013 with a total annual payroll of $3.11 billion.

Earnings posted by the Controller reflect actual earnings through June 30, 2013 and include
overtime, bonuses, vacation pay, sick time pay and other compensation that would be re reflected
on employee W-2 forms. In addition to the actual employee earnings, the City contributes to
employees’ defined benefit pension plans and to health, dental and vision coverage. For the year
ended Dec. 31, 2011, The City’s annual contribution to employee health plans averaged $10,608
for non-DWP civilian employees, $12,592 for the Police Dept., $13,368 for the Fire Dept. -- and
$14,224 for DWP employees. The Controller’s Office is in the process of compiling current figures.

“I want to thank DWP’s General Manager Ron Nichols for the providing the underlying data
requested by the Controller’s office,” said Controller Galperin, “and for his pledge to do so on a
quarterly basis going forward.”

The Controller processes payroll for all City Council controlled City departments, Los Angeles
World Airports and the Port of Los Angeles. DWP is on a separate payroll system, however, and
had not previously provided regular salary updates. The newly released salary and classification
information -- along with details, charts and graphs -- may be viewed and/or downloaded at
http://controller.lacity.org/Salary_Information/index.htm

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The Controller serves as the auditor and chief accounting officer of the City of Los Angeles, disbursing close to $5
billion in payments to vendors annually; processing payroll for more than 42,000 City employees; conducting
independent financial, performance, contract and information systems audits; and reporting the city’s official
financial information. Controller Ron Galperin began his term as City Controller on July 1, 2013. More information
is available at the website of the City Controller: www.controller.lacity.org.