Los Angeles City Charter § 670 Board Composition.
Sec. 670. Board Composition.
The Board of Water and Power Commissioners shall consist of five members appointed and removed as provided in Section 502.
DEPARTMENT OF WATER AND POWER
Los Angeles City Charter tit. I, art. VI, pt. DEPARTMENT OF WATER AND POWER
in effectLos Angeles City Charter § 671 The Los Angeles River.
Sec. 671. The Los Angeles River.
The City of Los Angeles shall continue in the ownership and enjoyment of all the rights to the water of the Los Angeles River, vested in it and its predecessors, including the Pueblo of Los Angeles, and is hereby declared to have the full, free and exclusive right to all the water flowing in the river and also the exclusive ownership of, and the exclusive right to develop, economize, control, use and utilize all the water flowing beneath the surface in the bed of the river at any point from its sources to the intersection of the river with the southern boundary of the City.
Los Angeles City Charter § 672 Possession, Management and Control of Water and Power Assets.
Sec. 672. Possession, Management and Control of Water and Power Assets.
The Board of Water and Power Commissioners shall have the possession, management and control of:
(a) Water and Water Rights, Lands, and Facilities. Whether situated inside or outside of the City or the State of California, all the water and water rights of the Los Angeles River, all other water or water rights of every nature and kind owned or controlled by the City, and all the lands, rights-of-way, sites, facilities and property used for the capture, transportation, distribution and delivery of water for the benefit of the City, its inhabitants and its customers. The water and water rights, lands, rights-of-way, sites, facilities and other interests of the City related to its water business under the possession, management and control of the board shall be known as the Water Assets.
(b) Electric Energy Rights, Lands and Facilities. All the electric energy rights, lands, rights-of-way, sites, facilities and property used for the generation, transportation, distribution and delivery of power for the benefit of the City, its inhabitants and its customers. The electric energy rights, lands, facilities and all other interests of the City related to its energy business under the possession, management and control of the board shall be known as the Power Assets.
Los Angeles City Charter § 673 Water and Water Rights.
Sec. 673. Water and Water Rights.
(a) Los Angeles River. The City shall not sell, lease or otherwise dispose of the City’s rights in the waters of the Los Angeles River, in whole or in part.
(b) Other Water and Water Rights. Except as provided in this Article, no other water or water rights owned or controlled by the City shall ever be sold, leased or disposed of, in whole or in part, without the assent of two-thirds of the registered voters of the City voting on the proposition, and no water shall ever be sold, supplied or distributed to any person or corporation other than to municipalities for resale, rental or disposal to consumers for their own use.
(c) Exceptions. To the extent authorized in Section 677, the prohibitions in subsection (b) shall not apply to the ordinary sale and distribution of water or reclaimed water to City inhabitants for their own use, the supply or distribution by the City of surplus water or reclaimed water outside the City, or the exchange of water with any public agency.
Los Angeles City Charter § 674 Power Contracts.
Sec. 674. Power Contracts.
(a) Subject to approval by ordinance, the board shall have the power to contract with the United States or any of its agencies, any state or state agency, and any corporation, public or private, located inside or outside of the City or State of California:
(1) For the construction, ownership, operation, and maintenance of facilities for the generation, transformation, and transmission of electric energy, subject to the following:
(A) Any contract entered into under this subsection may provide for a sharing of the use and benefits and of the capital charges and other obligations associated with the facilities.
(B) The term of any contract entered into under this subsection is not subject to the term limitations specified in Section 607(a) and may extend over the useful life of the facilities constructed, purchased or developed.
(2) For the sale, purchase, exchange or pooling of electric energy or electric generating capacity.
(b) The board may renew, without Council approval, any contract with the United States existing as of December 12, 1940 concerning the delivery of electric energy to the City and the customers of the department from the Hoover Dam electric generating facility.
Los Angeles City Charter § 675 Powers and Duties of the Board.
Sec. 675. Powers and Duties of the Board.
(a) Rules and Regulations. The board shall have the power and duty to make and enforce all necessary rules and regulations governing the construction, maintenance, operation, connection to and use of the Water and Power Assets for Departmental Purposes.
(b) Rates and Charges. The board shall have the power and duty to:
(1) regulate and control the use, sale and distribution of water, reclaimed water, surplus water, electric energy and surplus electric energy owned or controlled by the City;
(2) grant permits for connections with the water or electric works of the City and fix the charges for these connections;
(3) fix the rates to be charged for water, reclaimed water, surplus water, electric energy or surplus electric energy for use inside or outside the City in accordance with Section 676; and
(4) prescribe the time and the manner of payment for the collection of the rates and charges for water and electric energy.
(c) Development of the Water and Power Assets. The board shall have the power and duty to acquire, provide for, construct, extend, maintain and operate all improvements, utilities, structures, facilities and services as it may deem necessary or convenient for Departmental Purposes.
(d) Real Estate Interests.
(1) The board shall have the power and duty to acquire and take, by purchase, lease, condemnation or otherwise, in the name of the City, any and all property, real or personal, or any interest therein, situated inside or outside the City or State of California, that may be necessary or convenient for Departmental Purposes. The power of condemnation shall only be exercised with the approval of Council.
(2) Subject to the water and water rights of the City set forth in Section 673, no real property or any rights or interests in real property held by the board shall be sold, leased or otherwise disposed of, or in any manner withdrawn from its control, unless by written instrument authorized by the board, and approved by the Council.
(e) Incidental Authority. The board also shall also have the power to:
(1) enter into agreements with department customers to engage in co-generation projects;
(2) finance the sale and use of systems, equipment, devices or materials designed to conserve the use of water or electric energy;
(3) purchase, sell or exchange by-products of electrical power generation such as steam, hot water, chilled water or other thermal energy products;
(4) advertise its products and services to increase any of its businesses; and
(5) dispose, from time to time, of personal property, that is no longer necessary or suitable for the use of the Department.
Los Angeles City Charter § 676 Rate Setting.
Sec. 676. Rate Setting.
(a) Rate Setting Procedure. Subject to approval by ordinance, rates for water, reclaimed water, surplus water, electric energy and surplus energy shall be fixed by the board from time to time as necessary. Except as otherwise provided in the Charter, rates shall be of uniform operation for customers of similar circumstances throughout the City, as near as may be, and shall be fair and reasonable, taking into consideration, among other things:
(1) the nature of the uses;
(2) the quantity supplied; and
(3) the value of the service.
The rates inside the City may be less, but not greater, than the rates outside the City for the same or similar uses.
(b) Individual Power Contracts. Rates for electric energy may be negotiated with individual customers, provided that these rates are established by binding contract, contribute to the financial stability of the electric works and are consistent with procedures established by ordinance.
Los Angeles City Charter § 677 Sale or Exchange of Water and Power.
Sec. 677. Sale or Exchange of Water and Power.
The board shall have the power:
(a) Surplus Water. To supply and distribute any surplus water owned or controlled by the City and not required for the use of consumers served by the City within its limits:
(1) to consumers outside the City for their own use; and
(2) to municipalities outside the City for municipal uses, or for resale, disposal or distribution to consumers within those municipalities, subject to the following:
(A) Any contract for the supply or distribution of surplus water shall be subject to the paramount right of the City, at any time, to discontinue the contract, in whole or in part, and to take, hold and distribute, the surplus water for the use of the City and its inhabitants.
(B) Contracts for supplying surplus water by the City to other municipalities outside the City may be made by the board for periods not exceeding 15 years, and upon terms and conditions set by the board and approved by ordinance. Any contract shall include the right to terminate the contract upon three years written notice to the municipality that the water supplied under the contract is required for the City and its inhabitants.
(C) Prior to execution, the contract must be assented to by a majority of the registered voters of the City voting on the question at a regular or special election.
(b) Exchange of Water. To enter into contracts with any public agency for the exchange of water as long as the water exchanged is replaced in full to the City within a reasonable period set by the board.
(c) Reclaimed Water. To supply and distribute reclaimed water to consumers served by the City within its limits, to consumers outside the City for their use, and to public agencies outside of the City for public uses and for resale, disposal or distribution to consumers within the public agency’s jurisdiction.
(d) Surplus Energy. To supply and distribute or exchange any surplus electric energy, owned or controlled by the City and not required for the use of consumers served by the City within its limits, to any person or entity whether located inside or outside of the City.
Los Angeles City Charter § 678 Powers and Duties of the General Manager.
Sec. 678. Powers and Duties of the General Manager.
In addition to the powers described in Section 604, the general manager of the department shall have the power and duty to:
(a) enforce all orders, rules and regulations adopted by the board;
(b) supervise and manage the design, construction, maintenance and operation of all work or improvements authorized or ordered by the board; and
(c) carry out all powers and duties of the department delegated by the board.
Los Angeles City Charter § 679 Water and Power Revenue Funds.
Sec. 679. Water and Power Revenue Funds.
(a) Water Revenue Fund. All revenue from every source collected by the department in connection with its possession, management and control of the Water Assets of the City shall be deposited in the City Treasury to the credit of the Water Revenue Fund.
(b) Power Revenue Fund. All revenue from every source collected by the department in connection with its possession, management and control of the Power Assets of the City shall be deposited in the City Treasury to the credit of the Power Revenue Fund.
(c) Use of Funds. The money in the Water Revenue Fund and Power Revenue Fund may not be appropriated, transferred or expended for any purposes except the following:
(1) Operation and Maintenance. For the necessary expenses of operating the department, including the operation, promotion and maintenance of the Water and Power Assets for Departmental Purposes.
(2) Retirement of Indebtedness. For the payment of the principal and interest, due or coming due during the fiscal year in which the revenues are received, or are to be received, upon outstanding notes, certificates or other evidences of indebtedness issued against revenues from the Water or Power Assets or bonds or other evidences of indebtedness of the department.
(3) Development of Assets. For the necessary expenses of constructing, extending and improving the Water or Power Assets, including the purchase or condemnation of lands, water rights and other property for Departmental Purposes.
(4) Reimbursements. For reimbursement to another department or office of the City on account of services rendered, or materials, supplies or equipment furnished to support Departmental Purposes.
(5) Promotion of Business. For the promotion of any of its products or services.
(6) Promotion of Conservation. For the development, or promotion or use of systems, equipment, devices or materials by department customers that conserve utilization of water, electric energy and related departmental services.
(7) Employee Benefits. For defraying the expenses of any pension or retirement system and health or other benefits applicable to the employees of the department.
(8) Bond Reserve Funds. For establishing and maintaining a reserve fund to insure the payment at maturity of the principal and interest on all bonds now outstanding or hereafter issued for Departmental Purposes and the money set aside and placed in these funds shall remain in the funds until expended and shall not be transferred to the Reserve Fund of the City.
(9) General Fund Transfers. To be transferred to the City General Fund as provided in Section 344.
Los Angeles City Charter § 680 Other Enterprises.
Sec. 680. Other Enterprises.
(a) Entry into Any Other Business. Notwithstanding any provision in the Charter to the contrary, the Council, upon making a finding that it is in the best interests of the City, may by ordinance authorize the department to engage in any lawful business enterprise that is in the best interests of the City’s inhabitants and that will not interfere with the department’s role as a provider of water and power to the City’s inhabitants.
(b) Entry into Public Utility Competition. Without limiting the provisions of subsection (a), the Council may by ordinance adopted by a two-thirds vote and approved by the Mayor, or passed by three-fourths vote of the Council over the veto of the Mayor, authorize the department to provide electricity service or any other service, which may be provided by another utility or direct competitor to any person or entity, whether situated inside or outside of the City or the State of California.
(c) Prohibition of Entry into Water Service Outside Service Area. Water service or products that would be provided outside the department’s retail service area are specifically excluded from the provisions of this section.
(d) No Limitation on Department. Nothing in this section limits any right, power or authority granted to the department or to the board elsewhere in the Charter.
Los Angeles City Charter § 681 Division of Departmental Functions.
Sec. 681. Division of Departmental Functions.
(a) Division. Notwithstanding any provision in the Charter to the contrary, the board shall have the power to divide the functions of the department into two divisions. A Division of Water Services shall carry out the Departmental Purposes associated with water and a Division of Electric Services shall carry out the Departmental Purposes associated with electric energy. Each division shall be directed by a general manager appointed, removed and evaluated, and vested with the same powers and duties provided in Sections 604 and 678.
(b) Consolidation. Upon the division of departmental functions provided in subsection (a), the board shall have the power to discontinue the divisions and consolidate the functions of the department under the direction of a single general manager.
Los Angeles City Charter § 682 Health Benefits.
Sec. 682. Health Benefits.
The Board of Water and Power Commissioners may provide by order or resolution for health insurance and similar benefits to active employees and department retirees. The board shall determine eligibility and required contributions and other terms and conditions in its order or resolution establishing or modifying these benefits.
Los Angeles City Charter § 683 Office of Public Accountability.
Sec. 683. Office of Public Accountability.
(a) The role of the Office of Public Accountability (OPA) shall be to provide public independent analysis of department actions as they relate to water and electricity rates.
(b) The OPA shall be headed by an Executive Director, who shall be exempt from civil service. The Executive Director shall be appointed by a citizens committee to a five-year term, subject in appointment to confirmation by the Council and Mayor. The Council shall by ordinance provide for the removal of the Executive Director in a procedure similar to that set forth in City Charter Section 575(e), and only for the reasons provided by ordinance. The Council by ordinance shall prescribe the composition and manner of selection of the citizens committee.
The citizens committee shall fill any vacancy in the position of the Executive Director by appointment, subject to confirmation by the Council and Mayor. The Mayor may appoint a temporary Executive Director to serve until the vacancy is filled, subject to confirmation by the Council, provided however that no temporary Executive Director shall serve for longer than six months without the approval of the citizens committee.
(c) The Executive Director shall (1) report directly to, but shall not be instructed by, the board; (2) have full charge and control of all work of the OPA; (3) be responsible for the proper administration of its affairs; (4) appoint, discharge, suspend, or transfer all of its employees, subject to the civil service provisions of the Charter; (5) issue instructions to OPA employees in the line of their duties, subject to the civil service provisions of the Charter; (6) prior to the beginning of each fiscal year and in accordance with a schedule prescribed by ordinance, submit to the City Administrative Officer a proposed annual budget covering the anticipated expenditures of the OPA; (7) expend the funds of the OPA (including, without limitation, awarding contracts) in accordance with the provisions of the budget appropriations or of appropriations made after adoption of the budget; and (8) perform such other duties as may be prescribed by ordinance.
(d) The City Council shall by ordinance establish provisions for the administration and operation of the OPA, which provisions shall include at a minimum: (1) reporting requirements and schedules and (2) consumer protection and complaint procedures.
(e) The OPA shall have access to information to fulfill its responsibilities.
(f) The employees of the OPA shall include a Ratepayer Advocate and additional positions as prescribed by ordinance. The OPA shall periodically issue public reports.
(g) The department shall include a budget for the OPA as shall be set by ordinance at a level not less than 0.025 percent of department annual revenues from the sale of water and electric energy for the previous fiscal year.
(h) Nothing contained in this section shall reduce or otherwise affect the authority of the City Controller to conduct fiscal and performance audits of the department.
(i) This Section shall be operative on July 1, 2011.
SECTION HISTORY
Added by Charter Amendment I § 1, approved March 8, 2011, effective April 8, 2011; Subsec. (b), Charter Amendment HH, approved November 5, 2024, effective January 8, 2025.
Los Angeles City Charter § 684 Submission of Budget to the City Council for Informational Purposes.
Sec. 684. Submission of Budget to the City Council for Informational Purposes.
The Board of Water and Power Commissioners shall submit a preliminary budget for the upcoming fiscal year to the City Council for informational purposes by no later than March 31 of each year and shall by May 31 of that year update the preliminary budget based on additional information received after March 31, including without limitation, additional information about revenue and expense projections. This Section shall be operative on July 1, 2011.
SECTION HISTORY
Added by Charter Amendment J § 1, approved March 8, 2011, effective April 8, 2011.
Source: City of Los Angeles, Charter and Codes (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/los_angeles/latest/laac/0-0-0-3312Fetched: 10/24/2026