Rockwell Move From Anaheim Is Threatened : Industry: Official says company could be forced out if ballot measure brings higher utility rates. At stake are 4,000 jobs.

An executive with Rockwell International, one of the city’s largest employers, said Tuesday night that the company may move its 4,000 jobs to another state if a proposed ballot measure results in higher utility rates.

Reading from a prepared statement, Richard B. Clark, the company’s manager of facility design, warned the City Council that the company’s entire operation could move to join its other plants in Georgia, Iowa or Texas, where electricity costs are now lower than in Anaheim.

Clark’s comments came as the council voted to place a series of ballot issues before the voters in November, including an initiative that would allow the transfer of an additional $9 million from the city’s Utility Department to its depleted general fund.

With the support of many in the business community, Clark predicted that such a transfer could raise electric and water rates by up to 4%.

In what amounts to an early warning to the city, the Rockwell statement also serves to bolster what has been a growing sentiment among Southern California business leaders that it has become too expensive to maintain their operations in the state.

“Today’s business climate for Rockwell . . . is very tough,” Clark said. “Where we used to have mostly a U.S. government customer base, we now have to compete worldwide with many companies who have lower costs than ours.”

The executive said local electricity and water costs now represent about 25% of the company’s operating costs.

“Our plants in Georgia, Iowa and Texas all have lower electricity costs than Anaheim, and most of our manufacturing is already done there,” he said. “Do not force us to take our engineering and marketing there too.”

With its more than 4,000 jobs, Rockwell has long ranked second only to Disneyland among Anaheim employers.

Councilman William D. Ehrle said he disagreed that a transfer of utility revenues would be accompanied by a rate increase.

“There is no guarantee that the council would increase rates at all,” Ehrle said. “To say that we’re going to increase rates by 4% is misleading the public. I won’t do that.”

Clark was followed to the podium by Anaheim Chamber of Commerce President Ray Torres, who said a recent poll of the chamber’s leadership found that 67% opposed the fund-transfer ballot measure. Of those polled, he said, most feared that a rate increase would follow if voters approved the ballot measure.

Torres said the transfer of $9 million would leave officials with little choice but to to ask ratepayers to make up for lost revenue.

Following the meeting, Mayor Fred Hunter joined Ehrle in stating that a transfer would not necessarily be followed by a rate increase. He also offered a stinging criticism of the chamber.

“I’m one of the biggest backers of business and business retention in this city,” Hunter said. “I’ll start listening to the chamber when they start doing as much to retain business in this city as I do. It’s nothing but a social club.”

Times staff writer Terry Spencer contributed to this story.