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LADWP Response to ARRA Grant Funds Audit by City Controller Wendy Greuel

LADWP Response to ARRA Grant Funds Audit by City Controller Wendy Greuel


We worked closely with the Controller on this review and found it helpful in establishing new procedures for handling the federal ARRA grant funds. We have also improved other existing protocols and procedures for handling federally-funded contracts as a result. We have corrected the deficiencies noted in the audit and we have made significant progress since the review period in spending additional funds.

Specifically, since the audit review period a total of $39 million has been spent by LADWP on ARRA grant funded projects, including:

  • LADWP has spent $20 million more on the water quality improvement projects provided for under the $35 million ARRA grant award and expects to bill for this amount in the next 60 days. It should be noted that the $35 million in federal ARRA grant funds for these projects have been fully-contracted for work that is already underway on City Trunk Line 2, River Supply Conduit 3 and Santa Ynez Reservoir. We were awarded grant of $60 million, which LADWP will match, for a $120 million Smart Grid Demonstration Program. As of Dec. 31, 2010, we have spent $3.4 million and received reimbursement for $1.7 million. The spending schedule is from January 2010 through June 2015.
  •  LADWP has launched the Energy Efficiency Retrofits for Non-Profits ($2 million), Outreach Grants for Non-Profits ($1.5 Million total) and Enhanced Utility Rebates and Customer Incentive programs (nearly $3.5 million), which are three of the five programs funded through the Energy Efficiency Conservation Block Grant. We are working with our partners to accelerate our spending on these programs between now and June to meet grant milestones. We expect to launch the remaining two EECGB programs, which will study on-bill financing ($165,000) and fund additional Single Family Household Energy Retrofits ($925,000) in the next 60 days. Altogether, these projects total $8 million in ARRA grant funding. It should be noted that two of the five EECGB programs were transferred to LADWP from the Community Development Department in June 2010 due cutbacks in the city.
  • We were awarded grant of $60 million, which LADWP will match, for a $120 million Smart Grid Demonstration Program. As of Dec. 31, 2010, we have spent $3.4 million and received reimbursement for $1.7 million. The spending schedule is from January 2010 through June 2015.