Eye On Modesto

Thoughts and observations about Modesto and Stanislaus County

Archive for the tag “corrupt business practices”

Here are the Letters Between MID and the City of Modesto

By Emerson Drake

You’ve heard about them and here they are the written  exchanges between Modesto and MID.

MID-CityLetters

Also, here is a little teaser.  You know the MID has been using Martino Graphic Design INC to funnel money to political consultant and lobbyist  Mike Lynch.  But were you aware of the potential amount in their contract?  Under purchase order 54981 from July 23, 2010 thru December 31, 2011:

This contract is issued to provide professional services to Refocus and Enhance Public Education and Information per Board Resolution No. 2010-35.

Not-to-exceed $450,000.00 plus cost and expenses.

$450,000.00 for Lobbying?  Now you know why your rates are so high.  They been giving contracts like these to friends to stay in power.

“On Watch” Cable TV Comcast 15, Streaming Video and 89.5FM

Emerson Drake
I’m guest hosting Athens Abell’s cable TV show “On Watch” at 6PM tonight Monday July 16th. Supervisor Terry Withrow will be there to discuss farmland mitigation. I’m doing a segment on Modesto’s negotiating with MID and Modesto City Councilman Dave Geer will be my guest. And if time permits a segment on the County Fair. It’s all on Comcast channel 15 the Assyrian Channel and online via streaming video and KBSV-89.5 FM 

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

More Corruption at MID

From Dave Thomas,

In  one of the most egregious in-your-face deals imaginable, Allen Short has made a deal with MID union employees to increase their already bloated salaries by 4%.  That is correct, “The contract was drafted with the help of an outside negotiator.  Two of the three bargainin  units have accepted it, MID General Manager Allen Short said.” (The Modesto BEE, page A-1, July 16y, 2012)

        If we did not understand how out of control MID management is, this should be the final teachable moment.  Remember, that $100,000 a year meter reader gets another $40,000 in benefits, partly because he pays NOTHING into his pension.  Short’s pay will likely be increased by a lame Board of Directors, meaning a monthly increase of about $10,000.

        This pay raise will also be used to justify the next electricity rate increase. 

        If there was ever evidence that Short must go, this is it.  Also, Glen Wild and Tom VanGronigan will be up for re-election next year.  Remember this when you vote.

        Thank you, Dave

Tonight at 6:00 PM Athens Abell’s “On Watch” MID Water Sales and More

Tonight at 6:00  PM Pacific I will be guest hosting Athens Abell’s cable TV program “On Watch” with guests John Duarte and Troy McComak.

It can be found on the Assyrian Channel KBSV-15 on comcast, KBES 89.5 FM, and http://www.betnahrain.org/KBSV/kbsv.htm streaming video.  Just click on DSL at the top of the page.

First off we’ll be discussing with John Duarte  MID’s proposed water sale and the propaganda and misinformation  that the Modesto Bee and others have  been spreading.

The we’ll bring you some interesting thoughts of Troy McComak a former California 10th District Congressional candidate.

I hope you can take the time to visit with us.

Here is the Email that Forced Supervisor Withrow to Recuse Himself from WestPark Discussions

By Emerson Drake

We’ve attempted to discover the actual sender but to this point were stymied. If anyone can pinpoint the exact sender for this information we’ll all be grateful.

Return-path: <billlyons82@hotmail.com>
Received: from snt0-omc2-s20.snt0.hotmail.com ([65.55.90.95])
 by mail.stancounty.com with ESMTP; Tue, 19 Jun 2012 08:49:57 -0700
X-CheckPoint: {4FE09FA4-2F-5264C83F-FFFF}
Received: from SNT136-W54 ([65.55.90.73]) by snt0-omc2-s20.snt0.hotmail.com with Microsoft SMTPSVC(6.0.3790.4675);
  Tue, 19 Jun 2012 08:49:56 -0700
Message-ID: <SNT136-W549F334BE6452C7901A66BA9FF0@phx.gbl>
Return-Path: billlyons82@hotmail.com
Content-Type: multipart/alternative;
 boundary=”_4fe5a1d5-b6da-4d55-a837-b96e8e82a8eb_”
X-Originating-IP: [174.254.228.224]
From: bill lyons billlyons82@hotmail.com>
To: <gstapley@modbee.com>, <boggsk@stancounty.com>, <obrienw@stancounty.com>
Subject: West Park
Date: Tue, 19 Jun 2012 08:49:56 -0700
Importance: Normal
MIME-Version: 1.0
X-OriginalArrivalTime: 19 Jun 2012 15:49:56.0849 (UTC) FILETIME=[2CF9F610:01CD4E33]
 
–_4fe5a1d5-b6da-4d55-a837-b96e8e82a8eb_
Content-Type: text/plain; charset=”iso-8859-1″
Content-Transfer-Encoding: quoted-printable
 
I think an interesting story would be why supervisor Terry is able to vote =
on a project where his family and their partners own surrounding land. Del =
Mar and Maring and their affiliates own land around and near the naval base=
. In Terry’s own words “his is an accountant and can work figures”=2C I thi=
nk anyone that can do basic math can figure when surrounding properties are=
 developed=2C the undeveloped values increase significantly.
            =
 
–_4fe5a1d5-b6da-4d55-a837-b96e8e82a8eb_
Content-Type: text/html; charset=”iso-8859-1″
Content-Transfer-Encoding: quoted-printable
 
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<head>
<style><!–
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<body’hmmessage’><div dir=3D’ltr’><br>I think an interesting story=
 would be why supervisor Terry is able to vote on a project where his famil=
y and their partners own surrounding land. Del Mar and Maring and their aff=
iliates own land around and near the naval base. In Terry’=3Bs own words=
 “=3Bhis is an accountant and can work figures”=3B=2C I think anyon=
e that can do basic math can figure when surrounding properties are develop=
ed=2C the undeveloped values increase significantly.<br>            </div><=
/body>
</html>=
 
–_4fe5a1d5-b6da-4d55-a837-b96e8e82a8eb_–

Muratore Stabs Constituents in the Back

 By Emerson Drake

When MID’s General Manager Allen Short and attorney Tim O’Laughlin made their water presentation to the Modesto City Council, they deliberately misled them regarding the reliability of Modesto’s water supply from MID.  This was acknowledged by the Council when they finally had the opportunity to read the proposed contract with the San Francisco Public Utility Commission , also know as the SFPUC.  O’laughlin had the audacity to stand  in front of the Council and claim the contract would protect Modesto and keep Modesto first when it came time to divvy up available water.

Obviously that was just a lie.

When the council first voted in closed session it was 5-2 for exploring a lawsuit against MID for violating a  2005 contract. But before it became public the Council took another vote which made it a unanimous 7-0 vote.  Councilman Lopez spoke about this in open session. The two votes against were Mayor Marsh and Councilman Lopez.

 Councilman Muratore Betrays Modesto and Changes His Mind

Unfortunately MID Director Tom Van Groningen has since somehow  “persuaded” Muratore to change his mind and suddenly Muratore loves the proposed water sale.  What arguments did Van Groningen use?  Did he magically make more water appear in Don Pedro? No. Was he able to convince the SFPUC to take a back seat to Modesto and the farmers?  No.  So what did he dangle in front of Muratore to change his mind?

Well we do know from past experience with Councilman Muratore that money talks.  Maybe VanGroningen apologized for not passing a special exemption when Muratore, Swehla, Endsley and Hawn brought a solar project to the MID board.  Unfortunately that time Swehla screwed the pooch and failed to meet a paperwork cut-off and the project wasn’t eligible for the increased financial inducement which would have made the project viable, costing their fledgling company any chance of remaining in business.  And of course we remember Van Groningen supported Endsley’s biomass/garbage burner plant which cost ratepayers $1.292Million dollars. The $92,000 went to MID attorney O’Laughlin’s firm, but hey, who’s  counting?

Maybe a Forensic Auditor should be brought in to examine MID’s books given the revelation MID’s General Manager made when he admitted he had funneled money to political consultant Mike Lynch through Martino Graphic Design,INC. Has he done this before?  Have they paid a political consultant through a graphic design company or another company unrelated to political consulting to disguise their intent?  Couldn’t this sleight of hand be considered illegal, especially if there is evidence of this not being the first time?  Lynch has been making the rounds whispering in the ear of political wannabes like Councilman Lopez’s stepson Josh Vanderveen, who has been speaking out for the sale regularly since this issue came to light. Up to this point there hasn’t been enough known inducement for Lynch to be making promises to so many political candidates.  And of course it can’t hurt that Councilman Lopez has been making discrete inquiries about running for Supervisor Dick Monteith’s job when the supervisors term expires.

Whatever VanGroningen whispered into Muratore’s ear worked and as a result the potential vote is now 4-3 regardless of anything you’ve heard.  Now all eyes are on Councilman Cogdill to see if he’s as honorable as we hope.

Above all we need Council members to watch out for the Citizens of Modesto’s best interests and not their political careers or their wallets.

Important MID Up Date Here’s the Latest Information about the Water Sale

From Reed Smith

Concerned water users:
 
Director Larry Byrd stated today that MID has four (4) votes IN FAVOR OF SIGNING THE CONTRACT.  Any utterances by Nick Blom, Jr. or Paul Warda to the contrary are not true.  Blom and Warda are so strongly in support of the sale that Byrd fought for an hour and a half today just to prevent MID Board from voting on this contract on July 10.  His successful result is that they will vote on July 24, 2012 to approve the sale.  We gained 2 additional weeks to prepare, thanks to Larry.
 
 
 
You will see that there are no substantive changes from the Draft stating that is was entered into January 24, 2012.
 
 
Our < stopMIDinsanity.com > efforts already include:
 
• Supporting City of Modesto Councilpersons in suing MID as first-parties to a breach of contract.
 
• CEQA compliance litigation preparation.
 
• 3rd-party lawsuit against MID for breach of contract.
 
• Referendum
 
• Recall of Board President Tom Van Groningen and Nick Blom, Jr.
 
• Possible recall of City Council members who support the sale by voting to restrict the City of Modesto from defending it’s contractual water delivery agreements through litigation.  We feel this is the first line of defense.
 
• Economic analysis for litigation support
 
• Hydrology technical assessment and support
 
We will keep you apprised of developments as they evolve.
 
Fundraising is now a critical component to our success, so any referrals to potential supporters will be important.  We have a goal of $250,000 in the next 60 days.
 
Regards, Reed
 

More Water Sale Information You Need to Know

By Reed Smith

Right now, MID has overcommitted it water resource by 71,804 acre feet, with no drought and no sale to SF.  With the sale to SF, that increases to 99,044 AF (and still no drought) of water MID does not posses.
 
This irrigation season, MID farmers are getting their full 42 acre inches of surface water deliveries.  Based upon rainfall, MID should have drasticaly cut water deliveries like Turlock Irrigation District did by cutting 50%. They politically could not document the drought with delivery reductions.  The MID Board, motivated by unknown incentives, is going to sell ALL of our water to SF.  I say ALL based upon the fact they are already breaching a written signed contract with the City of Modesto.  If this Board is willing to breach a written contract with their primary customers, and voters who elected them, they will do anything.
 
 
The MID proposed contract gives SF first right of refusal for all future sales.  Let’s connect the dots.  MID sells water they do not have, directly taking it from a populace that has a written contract, in order to provide it to the SFPUC and the Cargill development.  How is Modesto to protect any of it’s water with Nick Blom, Jr., Glen Wild, Paul Warda, and Tom Van Groningen sitting as Directors?  We can’t.
 
The City Council has the most direct power to stop this sale by enforcing, by litigation, the written contract it has with MID:  Appendix E: Water Treatment and Delivery Agreement.   This document is enforceable, and will prevent the sale.  THE PROBLEM:  Rubin Villalobos along with a handful or others are trying desperately to “flip” the 7 to zero City Council vote to sue MID to a 4 to 3 against suing MID.  Villalobos’s letter of May 4, says explicitly his purpose:  to stop the vote to sue MID.  Why would he do that?  He is being paid to do that, claiming he represents MCS, when MCS’s write he does not, all the while he is representing another paying client.  Villalobos profits from claiming to represent MCS, to the detriment of MCS.  We do not know the name of the real client.
 
Let me run through the math:  It takes 42 acre inches to grow an almond crop EVERY YEAR.  A farmer cannot skip an irrigation year because he did not get water.  The tree dies.
 
If MID sells to 27,240 AF of our water to SF, the resulting –99,044 AF from the over-obligation table can only come from one place, agriculture.  Ag gets, on average, 191,000 AF.  Subtract 99,044 AF from that and you have a 54.7% acreage loss to ag.  That means that permanent-crop farmers will have to fallow 54.7% of 58,000 acres, or saying it another way, turn 31,726 acres into desert, right in our midst.  Each acre, if growing almonds, the farmer generates $5,700 worth of almonds at the farm gate [3,000 lb. almond yield (non-pereil + pollinator) x $1.90/lb = $5,700 /Acre].  That money is, in turn, circulated throughout the Modesto community seven (7) times, as per Cecil Russell, Modesto Chamber of Commerce Exec Dir.  So, we take a loss of 31,726 acres x $5,700 farm gate value per acre x 7 times economic multiplication factor = $1,265,967,400 ANNUAL LOSS to MODESTO.
 
Stanislaus County will be an economic desert by 2018.  We have approximately 20% unemployment in our county now.  WHAT WILL IT BE LIKE LOSING $1.26 Billion from our Stanislaus economy?  AND, WHAT WILL CRIME BE?
 
MID does not have any water to sell.  The sale is fraud and grand theft.

Reed Smith’s Response to Tom Van Groningen and MID

When the FACTS fail MID Director Tom Van Groningen, all he has left is opinion.

 

Let me start by commenting that Tom Van Groningen (TVG) is only President of the MID Board, because heappointed himself President.  There was no vote for him to dominate the conversation at MID.  He claims to be the only one in the room in command of the “FAQ’s” (made-up false statements).  That is distinctly different than “FACTS.”

TVG states “the dialogue has generated some misinformation and I’d like to set the record straight.  The water transfer under discussion doesn’t include the sale of water rights”.  I guess TVG’s FAQs do not match up with the FACTS presented by the Chief of Water Rights for the CA State Water Board, who told us a 50-year water sale contract is absolutely a waiver of water rights.  MID will never get the water back.

TVG has been staging this SCAM since at least 2008, yet his ploy of the week is to scare you into the FAQ that the deal is NOW “urgent”.  The only thing that is urgent is the cash that will be skimmed off this deal.

TVG states: “The necessary infrastructure improvements are many, . . . These improvements will enhancewater use efficiency, increase the system’s flexibility and ensure reliablewater for our customers.”  This statement baffles me, as his staff and consultants were asked for the specific assessment reporting on the flume.  There are none.  No analysis has been done.  How can he state it is crumbling when he has not even looked?  Where is the X-Ray analysis of the structure?  His senior water engineer said in a MID Board meeting this year that if the flume started to leak because of an earthquake, it could be repaired within 5 days for approximately $55,000.  That made TVG furious (great video), and in the name of “civility” he called his own senior water engineer, with 35 years of MID experience, a LIAR during a MID Board meeting.  Wow.  I guess I missed the engineering degree on TVG’s resume.

I would like to point out that the Roman Empire’s first aqueduct was constructed in 312 BC, and much of these were constructed with concrete, the same as the Geer Road flume.  Many are still in use today.  Pretty scary being just 95 years old, when heritage aqueducts are over 2,000 years old.  Yes, certainly urgent, yup, yup, yup.

If the funds from the water sale are for infrastructure, why did MID General Manager, Allen Short, tell MID water users in October, no less than eight (8) times that the income from water sales would ONLY GO TO “CURRENT OBLIGATIONS, not infrastructure”. Why? Please read MID’s Proposed contract for this sale on their website foryourself.  That would be a FACT TVG.  Exhibit D says: “POTENTIAL USES OF REVENUE – Water sales revenue will be used for water related costs including BUT NOT LIMITED TO: • Debt retirement, • Rate stabilization, • Improvement district repairs/updates, • Enhanced canal security, • Pressurized systems, • Infrastructure improvements, • FERC relicensing and related obligations, • Water conservation programs.”  I do not read any commitment to infrastructure here.

The only honorable and truthful MID Director, Larry Byrd, set the stage to document what the otherfour have been up to: they already voted for this water sale once on January 10, 2012.

This only reminds me of the semantic concept of “to rationalize” when broken down onto its component parts is a “rational lie”.  When FAQS from the MID GM, MID Gen. Counsel, and the other four Directors are demonstrably all “rational lies”, who can doubt they WILL VOTE FOR THE SALE on June 26.

A Message To All of Modesto From Dave Thomas

Good afternoon, I hope you have time to read the attached.  It pretty clearly outlines my personal thinking and is generally supported by the STA.  Some of you might find some of my comments controversial.  Well, that is me, I am willing to step up and say what I believe is the truth.  I am far more interested in saying and writing what I believe is the truth, than sparing someone discomfort over their own actual public actions. 

        If you think something I say in the attached .pdf is wrong, please message or phone me and I will provide you the document(s) or other material that will tell you why I said it.  You might not want to believe some things that governments do to you, but there is plenty of documentation that is readily available in the BEE and on line.

        If you just do not like what I say, tell me why.

        If you think this information is worth sharing, please send it on to your friends.

        Thank you very much, Dave

My dear friends:

After reading this morning’s BEE, I am disheartened. Our

governments are no longer even remotely responsive nor responsible

to you and me. What is it that makes good friends and neighbors

mindless rubber stampers who grovel in front of a government staff.

Why do most elected officials become zombies after being elected?

Their peers vilify the ones who continue to think after being elected

when they try to inject common sense into an issue.

Today’s BEE challenges even the most cynical amounst us with

3 stories. The first page tells us that now, the City government is

going to regulate camping out. That is not restricted to illegal

camping out, or squatting, but even your children’s back yard fun. I

can understand vagrants who invade and ruin public property. But,

no, the City “leaders” had to make your children felons if they leave a

tent up in your back yard for more than 5 days. Apparently, your

kids cannot camp in your backyard unless the property owner goes to

the cops and gets a permit to erect a tent for no more than 5 days.

Councilman Dave Lopez told us that we desperately need a law

to “safeguard the public” against “illegal camping”. Well, Dave, if it is

already illegal, did what you voted for last night make it even MORE

ILLEGAL?

Councilman Joe Muratore told us, “We are not creating a police

state.” Really? When you support a new law that allows the cops to

come into your backyard and arrest your children for having a family

Tee-Pee in it?

Councilman Dave Geer promised us that he “…trusted police

officers to enforce the ordinance with common sense…” Really.

REALLY? If illegal camping is already illegal, and the cops are not

enforcing those laws, why would he trust the cops to enforce this law

with common sense? The BEE says, “These campsites are often

strewn with trash, are a health and safety nuisance, and are occupied

by parole violators and others with criminal records..” Well, do the

cops not have a reason to arrest parole violators, other criminals, and

address health and safety violations ALREADY??

You know, it just occurred to me; this deal may be just like

Kristin Olsen’s sophomoric demand for a dumpster diving law – which

I understand has never been charged against anyone. Could it be

just another payoff to some complaining friend of a Councilperson?

Could it be a way for a Council crony to get even with a neighbor for

noisy kids in a nearby back yard? Hummmmmmm.

Well then, if that does not make your day, read the story on

the first page of Section B, “Council votes to raise rates.” Now HERE

is a remarkable story about your neighbors spending $400,000 on

something that may never happen. The deal is to double or triple

your water rates so the City can fix the MID’s water treatment plant.

You read that right, the MID build a water treatment plant, owns the

water treatment plant and screwed up the water treatment plant. It

does not work; it is a pile of useless concrete and steel junk. It must

be torn down. The City has no rights to that plant, and absolutely no

authority to trespass on it or fix it. The City has no rights to do

invasive testing of materials, or any other diagnostic work.

Does it matter that no one alive today knows how much it will

cost to fix? Several people have told me that it will cost more than

$40 MILLION dollars and as much as $65 MILLION. It is not a

remodel; it is not wallboard and bathroom fixtures. It is CONCRETE

and STEEL that does not work!! MID engineers have already found

over 100 “deficiencies” in this plant, and they are not known for

being thorough. There could well be 300 deficiencies that will be

found only after the fix gets started. MID General Manager Allen

Short promised me with his very own lips that this plant would come

in for less than $30 MILLION dollars. It has cost us about $85

MILLION to build so far, and no one knows HOW to fix it, let alone

how much it will COST to fix it.

The final act of insanity is that the CITY has sent MID a

demand letter to give the City permission to fix the plant, take over

all the legal battles that will go on for 3 to 5 years, and when the

plant is fixed – at an unknown date or cost – they want MID to simply

“hand over” the property ownership to the City…for free. And this

Council (except for Council Woman Burnside, who actually gets the

insanity of this all) is charging over the cliff as if MID has already

agreed to the Mayor’s demand.

The catch is, MID has not even read the demand. The City told

me it is not a public document, and refuses to release it to the

Taxpayers Association. The MID will not even begin to discuss this

ridiculous demand for 2 weeks, if then. Please tell me, what would

make the MID want to give away profit-making assets for nothing?

They make a huge profit (relatively speaking – ask me for details)

selling water to the City. They support plant employees with HUGE

salaries and benefits. They control the water and they control the

price of water. MID is broke, wallowing in debt and it NEEDS those

profits. What are the odds that they are going to bend over and give

away these assets?

Finally, read the Op/Ed piece by Tom VanGronigan on page A-

13. Full disclosure requires me to tell you that Tom and I have

served on several Boards and committees since the early 1990’s. We

know each other. I rarely agree with Tom. His politics and ideas are

not similar to mine. Nonetheless, we have remained cordial if not

friendly for a long time.

The comments contained in Tom’s piece simply are not

germane to the discussion of selling our precious water. Remember,

there are reasons to do things, and there are ways to do things.

Tom, in my opinion, confuses the two issues. Tom’s comments all

relate to the fact that MID is broke. It needs money, and it needs it

ASAP. OK, MID really IS broke, and that is a REASON to fix the being

broke part. But the WAY to fix the broke part is NOT to sell the most

important, precious asset we have, our water and attendant rights.

The WAY to fix the being broke problem is to get real with the

unions. MID cannot continue to pay average employees $140,000,

with bloated benefits. MID overhead consumes most of its massive

profits from electricity, and its enormous debt service eats the rest.

MID must renegotiate with the unions, get salaries in line with

reality, get its huge law suit problem solved, raise irrigation rates

from $10 per Acre Foot to at least $25 per Acre Foot, fix the water

plant and sell the water it has already contracted with the City to the

City. Selling the water will not fix the real problem, which is very bad

management.

Thank you for your attention. If you think this is worthwhile

information, let me know, and send it on to your friends.

Dave Thomas

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