Eye On Modesto

Thoughts and observations about Modesto and Stanislaus County

Archive for the tag “corrupt business practices”

“What’s On America’s Mind”

Tonight we’re going to discuss Modesto’s Blue Ribbon Commission, MID’s shyster lawyer and his ways, Fracking, Obamacare, and an update on reproductive rights.  The show starts at 7:00PM so don’t be late.  Share it with your friends.

http://www.blogtalkradio.com/centralvalleyhornet/2012/04/05/whats-on-americas-mind-with-emerson-drake 

Modesto Irrigation District Continues to Deceive the Public

By Emerson Drake

There can be no doubt MID General Manager Allen Short and his staff honed their skills at deception.  They’ve progressed from telling out right lies in the past, to passing off partial truths as to be factual.

After MID held their four public meetings they were aghast to find out several people had attended all of them and had taken notes.  These notes displayed the ever changing story that Mr. Short used in an attempt to promote his water “give away” program.   Like some politicians, Mr. Short “adjusts” his rhetoric to his audience. The reason I use the term give away is Mr. Short never publicly takes into account the other uses for the water which would bring in more money to the valley than the selling of water toSan Francisco.  Developers in the Bay area are planning to use the water for a home development to be built on a salt marsh. 

In his letter to Senator Feinstein he makes clear his desire to “make friends” with bay area politicians to secure their support for the central valley in the future. What wasn’t made clear until recently is over 100 of these same politicians have signed a petition against this development.  Oh what a tangled web we weave when first we practice to deceive.

As we’ve said before, MID meetings are never realistically portrayed by the Modesto Bee.  Speaker after speaker gets up and gives MID’s Board of Directors, .metaphorically speaking, “both barrels” against the proposed water sale.  The Farm Bureau has spoken out against the water sale as have many farmers who remind us the water table keeps getting lower and we need to recharge our aquifer if we expect it to last.  Our cities are pumping water out of the ground; the politicians and developers are paving over prime recharge land and now MID is selling the water to the bay area instead of “investing” the water locally.  We have land on the west side of the county that remains fallow because of the lack of water.

When appealing to MID’s ratepayers didn’t work, Mr. Short fell back, regrouped, and decided to go directly to the business community and arranged a discussion with Modesto’s Chamber of Commerce.  Nothing wrong with that except the Chamber decided they didn’t need to hear other points of view and they being men of industry could separate the wheat from the chafe. 

But I ask, how can anyone make an informed decision without hearing all of the facts?

Several truths are known, MID has a recent history of bungling everything it touches.  Take the water plant as an example, MID created a list of 100’s of construction design errors and construction defects.  Who is going to pay the potentially $100’s of Millions to redesign, tear out and rebuild this water plant expansion?  Probably the ratepayers and citizens ofModestowill. Yes there is an ongoing lawsuit against Black and Veatch but the blame could go either way or more likely be apportioned.  Again who cleans up the mess by picking up the bill?  Ratepayers!

Recently a ratepayer was asking questions at a MID Board Meeting Board. President Tom Van Groningen had a citizen escorted out by a hired badge and gun for disagreeing with him. 

We understand the lure Allen Short and staff are facing, a chance to play big wig, get lots of free lunches all paid for by someone else, You and Me.  Until they ”discovered” this new revenue stream no one had made a big deal about these suddenly needed improvements.  After all, paying down the $1.3 Billion in debt three of these Board members (four if you count their leader Allen Short) racked up they decided it wasn’t sexy enough so instead of making our selves financially sound lets spend it!

Did anyone from the Chamber of Commerce ask that question?  Not from what I heard.

Tonight on local cable there will be a discussion of MID’s proposed water sale on the Assyrian Channel (23 on Comcast). It will be available by streaming video at

http://www.betnahrain.org/kbsv/kbsv.htm

Other articles of interest:

https://eyeonmodesto.com/2012/01/28/january-24th-modesto-irrigation-meeting/

MID Attorney O’Laughlin Gets $102,280 for January from Ratepayers

By Emerson Drake

With some people there is no end to greed and it seems Modesto Irrigation District attorney Tim O’Laughlin of O’Laughlin & Paris LLP is no exception.  He went out of his way to troll for business on Tuesday denying a ratepayer the right to discussion during the Consent Items portion of the meeting.

Director Byrd had asked questions regarding Consent Item #1, a motion to approve Warrants in the amount of $970,523.55. He had question relating to the details behind the costs regarding several items.  Some of these were answered completely by staff and others vaguely with the caveat they would provide further detail at a later date. 

While the individual items were under discussion it was thrown open to public questions.  When a ratepayer asked for information regarding two items on the warrant list they were told by Tim O’Laughlin that they would receive their answer via Public Records Act or (PRA).  What many aren’t aware of is attorney O’Laughlin’s company gets paid extra to process these very requests.

Now MID’s own guidelines say that discussion will only take place if an item is pulled.  The question should have been answered immediately but O’Laughlin decided to create some work for his own company and denied the ratepayer the answer. During the meeting it was pointed out to the Board, that when addressing theCountyBoardof Supervisors or the Modesto City Council regarding Consent items, the answers are forth coming immediately.

A conversation with MID Board President Tom Van Groningen after the meeting suggested the questions should have been answered at the time of the query and the situation would be rectified by the next meeting.  On that we’ll have to wait and see. Not that we doubt Director Van Groningen’s word but in the not to recent past Dave Thomas of the Stanislaus Taxpayers Association had worked out an arrangement with MID General Manager Allen Short, only to find out at the next meeting that Mr. Short tossed the agreement aside and continued on as he had previously. It was suggested attorney O’Laughlin had something to do with the change of heart. So until we see if O’Laughlin is allowed to continue to drum up business for his own firm, the only position we can take is to bide our time until the next meeting.

The larger question remains as to why MID’s own attorney is allowed to generate unnecessary work for his company.

The answer to one of the questions, the Chamber of Commerce is celebrating their 100th anniversary this year and MID decided to spend $1,000 of ratepayers money to buy a page in their “special” anniversary issue.

You can decide for yourselves if you believe this is a judicious way to spend your hard earned money.

By the way, the Chamber of Commerce will be receiving a private presentation of the   MID water sale propaganda before the rate paying citizens do.  When queried, Cecil Russell, the Chambers CEO, wasn’t concerned that they wouldn’t hear both side of the discussion.  He believes these “Businessmen” can discern what needs to be done without all of the facts.

We believe, just as in a political debate, both side of a discussion should have the opportunity to present their points of view.

No offense to anyone but maybe the ratepayers who have spoken up against the water sale should have bought a page in their anniversary issue too.

For February 27th on Athens Abell’s ‘On Watch’ cable television show proponents for the sale of water have been invited, Josh Vanderveen and a representative for the Latino Roundtable either Armando Flores or Ruben Villalobos have been invited as they have been outspoken at MID meetings.   Two individuals who have spoken out against the sale, John Duarte and Todd Sill have been asked to come and represent the anti-sale side of the discussion. Final details have yet to be worked out.

January 24th Modesto Irrigation Meeting

Let the War for our MID Begin

By Emerson Drake

It was nice to see one of our newest Board members asking question regarding expenditures.   In the distant past that was a mainstay of Cecil Hensley, requesting information and challenging what he considered frivolous spending on the part of staff.  Larry Byrd was just seeking background of the Warrants or ‘bills’ MID was paying this month.

We were forced to endure a 50 minute workshop by Carol Whiteside regarding Board members Roles and Responsibility or Board Theory 101.  Unfortunately it didn’t cover the topic everyone believed was going to be covered, the reason for November 22, 11 meeting, A Resolution approving Modesto Irrigation District Board Policies regarding Board Governance Process and Board –Staff Linkage.

I know that’s a mouthful but its the Resolution Allen Short attempted to push through for MID Board approval after the election but before the new Directors could be seated and vote on the subject.  Both of the new Board members requested it be delayed until they could discuss and provide input on the subject.

When the embattled long timers on the Board have no idea of which way to turn, they fall back and punt.

Watching Board President Tom Van Groningen crawl sideways in response to a question from a ratepayer and claim in today’s meeting that these were just guidelines and not cast in stone, had to be seen to be believed.  There’s no nice way to say it because he was literally lying through his teeth. Originally the plan was to pass this resolution word for word.

Many people spoke out during the input for the good of the district portion of the meeting but fireworks erupted when Dave Thomas of the Stanislaus Taxpayers Association spoke.  Dave has been instrumental in trying to get information out of MID through Public Information Act Requests.

As many are aware MID hasn’t been forth coming with these requests.  We’ve had to go so far as to have a Letter to the Editor Published in the Bee to hold MID’s feet to the fire.

It’s felt that MID General Manager Allen Short over stepped his authority when he went to Washington and talked with Senator Diane Feinstein regarding the sale of water to the City and County of San  Francisco.  When he pressed former Board President Director Paul Warda if he had made a special request of Allen Short, Director Warda stated he had not.

At this point Tom Van Groningen became combative with Mr. Thomas and used about a minute and a half (no I didn’t time it)  of Dave’s alloted time and when the buzzer went off indicating Dave was out of time, Tom Van Groningen became aggressive pounding his gavel repeatedly unwilling to allow Dave to finish his statement despite the fact Van Groningen had “stolen” time  from him against past MID Board policy. Director Van Groningen became so incensed his face turned beet red and spittle flew from his mouth as he repeatedly slammed the gavel down.  Van Groningen was so rattled he then declared the meeting in recess and had an armed security guard remove Dave from the meeting.  Dave being the gentleman that he is left without further incident.

 Dave had written a records request and he read it into the record. The following is Dave Thomas statement to the board in its entirety in its original letter format.

. To:   Chairman of the Modesto Irrigation District Board of Directors, Tom VanGronigan

Tom, my good friend, we have served on several committees and boards since the early 1990’s.  We pretty much know each other.  I meant to write this request Tuesday afternoon, but just could not get to it.  I am pretty sure that we are quite busy, and you understand that this request is less timely than I want. 
In any case, I, and the Association are in need of information regarding Allen Short’s October visit to  Washington D. C. to visit Senator Diane Feinstein, Congressman Jeff Denham’s assistant, Nancy Pelosi’s Policy Advisor and two FERC officials.  This means that I am required to make a request under the tenets of the California Public Records Act, we request the following information:
    1.  MID counsel O’Laughlin responded to my PRA request by sending me a letter signed by Allen Short and addressed to Senator Feinstein, the first sentence of which thanks the Senator for meeting “…with the group from Modesto Irrigation District and City and County of San Francisco.” regarding Allen’s “deal points” for a 27,200 acre foot water transfer of MID water to San Francisco. 
        During the Jan 24th MID meeting, you refused to identify the “group” of people from MID and CCSF who met with the Senator.  This refusal requires me to make a PRA request to tell us exactly who visited the Senator with Allen.  Please tell us the name and title of every person who visited with Allen and the Senator.
    2.  Please tell us if you were one of the people who were in the group mentioned in #1, above.  Moreover, identify any other MID AGM’s, managers, any MID employee, spouse, relative or friend that accompanied the MID entourage whether they paid for their expenses or their expenses were paid by MID
    3.  Please tell us the dates, locations and reasons for the visits, of every meeting you have had with Allen Short and/or Tim O’Laughlin, from July 1, 2011, to Jan 23, 2012.  This includes every non-scheduled MID Board meeting, whether just you and Allen, or you and Tim, or both Allen and Tim and others.
    4.  Please tell us what expenses MID has paid for your travel, entertainment, any auto expenses, any other payments or reimbursements whether cash or credit card, from July 1, 2011 to Jan 23, 2012.
    5.  Finally, during Tuesday’s meeting, last year’s Board Chairman, Paul Warda, admitted that Allen’s trip to Washington D. C., as described in #1 above, was not authorized by the BoD.  Please confirm, as current Chair, that this trip was outside the authority vested in Allen.  Or, if you know that Allen’s trip was appropriate under Resolution 95-66,or any other Board sanction, please tell us.

    Thank you, Tom, I appreciate your candid, transparent and complete response to our request.  I know you are committed to total transparency in all your efforts to protect the MID customers.
    Dave

I have made similar Public Information Requests since the meeting and will be following them up.

More MID Deceit…A Look at MID Rate Increases

By Dave Thomas

Good morning.

There have been 13 rate increases since 2001, or in the last 11 years, and this next one will be the 14thincrease to the rate payers in the same 11 years.

 

                   I have to tell you, though, John, that sometimes I fear that the true harmful economic impact of these insidiously “modest” cost increases is not appreciated.  Today’s story quoted a ratepayer as complaining that we have had rate increases of “86.25% in 10 years”.  I think I am being kind when I say, “That is not quite accurate”.

 

                   You can see by the attached MID rate increase summary, that the actual cost of electricity billed to ratepayers is substantially more than 86%.  We went to our tax records and pulled out every bill we paid in years 1998 through 2004, and recorded the starting rate, each rate increase, then compared those rates to our October bill.  If you look closely at the lowest rate actually charged, it is the Winter Rate of 1998, and the rate was $.0602, or 6.02 cents per Kilowatt hour.  The current rate actually charged occurred on the Summer Rate of 2011.  That rate is $.1808, or 18.08 cents per Kilowatt hour.  This 18 cents is, however, not the whole story, because MID, in its wisdom also added a flat rate of $12.50, thus increasing the costs by another $150 per year to every rate payer.  Moreover, the City of Modesto’s 6% Utility Tax was imposed on every rate increase, and last month MID sent over $1 Million dollars in Utility Tax to the City.

 

                   Let’s do the rest of the math.  If a ratepayer paid $100 a month electricity bill in 2001, the total COST of electricity would now be $264.54 (including the tax).  If that same ratepayer’s monthly summer cost was $200 in 2001, the rate increases published in today’s story would increase his monthly cost to $502.37.  AND the City would charge him another $30.14; the total monthly bill would be $532.51.

 

                   Thank you very much, Dave

MID ELECTRICAL RATES, 1998 THROUGH 2011

                                                SUMMER RATES                              WINTER RATES

1998                1ST 500 KWH             .0727                                                   .0602

                        OVER 500 KWH        .0797                                                   .0661

1999                SAME RATES AS 1998

2000                RATES NOT DISCLOSED

2001                RATES NOT DISCLOSED

2002                FLAT RATE INTRODUCED AT $12.50

                        1ST 5OO KWH           .0784                                                   .0649

                                                            .0860                                                   .0713

2003                FLAT RATE $12.50

                        1ST 500 KWH             .0879                                                   .0728

                        OVER 500 KWH        .0964                                                   .0799

2004                FLAT RATE $12.50

                        1ST 500 KWH             .0962                                                   .0797

                        OVER 500 KWH        .1055                                                   .0874

2011                FLAT RATE $12.50

                        1ST 500 KWH             .1649                                                   .1367

                        OVER 500 KWH        .1808                                                   .1498

______________________________________________________________________________

IN THE 6 YEARSFROM 1998 AND 2003, THE RATES INCREASED BY

                        1ST 500 KWH             .0152                                                   .0126

                        OVER 599 KWH        .0237                                                   .0138

IN THE 8 YEARSFROM 2003 AND 2011, THE RATES INCREASED BY

                        1ST 500 KWH             .0770                                                   .0639

                        OVER 500 KWH        .0841                                                   .0699

When I look at these numbers, I have to ask, just when did Allen Shortbecome the boss at MID?

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