Eye On Modesto

Thoughts and observations about Modesto and Stanislaus County

Archive for the tag “larry byrd”

MID: The Water Wars Continue

By Emerson Drake

We thought the water wars were over but in fact we’re in the middle of another one. As always in an organization as large and important as the MID or Modesto Irrigation District is, there is lots of room for shenanigans. And if you throw the OID or Oakdale Irrigation District in, well then things get much more interesting.

In both organizations we have three Directors that want to sell water outside of the Stanislaus Basin and two that don’t. In MID and OID memories of the water wars of 10 or so years ago are still fresh. The public uproar to the attempted sales burned them so in their opinion it’s vital that everything go smoothly. Remember how the drought brought the Dom Pedro Reservoir down to the size of a creek? Last year our rainfall was half of normal. And the water levels have been falling throughout the OID and farmers have needed to drill deeper to ensure their water supply.

OID wants to sell water to Brisbane instead of re-charging the aquifer and they need MID’s canals to do it. Everybody sees the Merced Irrigation District ready to sell water for $300 per acre foot and the salivating starts. OID’s past Brisbane water conversations have been centering around a 50 year agreement followed by a 25 year agreement at $500 an acre foot. OID attorney Tim O’laughlin was MID’s attorney for the attempted water sales to San Francisco, and is now the OID attorney and also represents Mahi Pono in Hawaii. Most will remember them as Trinitas before they were sold and expanded. O’Laughlin has a history of promoting water sales for Districts where the resident owners (both MID and OID are publicly owned utilities) haven’t always agreed with the sales. Hence the obvious need to control the Boards majorities.

OID has subsidized its farmers by selling water in the past but the falling water tables from 55 to 90 feet have opened many eyes. Some of the farmers we’ve talked with within the OID service area are willing to pay more to keep the water local. The water underground is like a savings account for everyone but OID seems to be willing to gamble everyone’s future for what could end up being pocket change today. It makes it easier to get reelected.

MID uses the electric side to subsidize their water to farmers but they also use residential electric customers to subsidize the cost of electricity for big companies like Gallo and those south of Yosemite. But they have a power broker/farmer/developer in Bill Lyons, who for years called the tune for MID’s Directors to dance to. After Directors Blom and Byrd and later Jake Winger were elected, that stopped. After Stu Gilman was elected and then turned his back on his constituents everything started to go back in the power broker/developer Bill Lyons favor. To my knowledge Bill Lyons is the only one who pays for two lobbyist/lawyers Stacy Henderson and Bob Fores to sit in the gallery meeting after meeting, or more recently on zoom to manipulate the outcomes, many for his advantage.

At the September 22nd meeting John Mensinger, Stu Gilman, and Paul Campbell were waiting to attack Larry Byrd with the help of Lyons lobbyist/lawyers hired minions, Stacy Henderson and Bob Fores.

The Board’s attorney, Wes Miliband and Interim General Manager Ed Franciosa, needed to get together to put on the last minute addition so the Brown Act presentation wasn’t officially on the agenda. The attorney said it was the first time he’d made a public Brown Act presentation in the 10 years he’s been with the MID. They were setting the table for the plotted ambush.

As soon as the non-agendized Brown Act presentation was completed Director Byrd made a short statement and then Stu Gilman jumped in. Then John Mensinger interrupted Board President Campbell to sic Stacy Henderson, followed immediately by Bob Fores, on Director Byrd.

Now the Brown Act says one Director may talk with another but the majority, in this case three, Directors can’t discuss the same topic in private. I encourage everyone to watch the video of this session and decide for themselves if these three were, well let’s be nice, and call it on the same page. Of course the outside lawyer for MID and the General Manager needed to know what was going on especially with this the presentation not originally act being on the agenda. Public Record Requests have been made but MID’s lawyer insisted on an extension which will have the requested documents arriving after the next scheduled meeting. Surprised?

The strange thing is these, should we say possible conspirators, were preparing to say that Director Byrd might have allowed someone to be present in his truck during closed session, in itself a potential Brown Act violation. Director Byrd completely denied the allegation.

At about 2:12 into the meeting Director Mensinger starts raising his voice demanding that this be brought to the next open meeting. When Director Mensinger said “we want to agendize this for discussion and action“, who is we? Was it John Mensinger, Stu Gilman, and Paul Campbell? Were the three Board members acting in collusion?

Wouldn’t that act itself be a Brown Act violation?

MID Staffer Caught ‘Fudging’ The Numbers

By Emerson Drake 

At the 1/22/19 meeting AGM Finance/Treasurer Scott Van Vuren delivered a report that was supposed to layout our in-house and outside legal costs to allow the Board to make an educated decision regarding whether to hire a replacement in-house attorney or to hire an outside law firm to function as MID Counsel.  He made his presentation but both some members of the Board and the public had questions.  When we tried to get Van Vuren to total the two  pages, the first for $1.8 M  and the second for $1.8M each total is give or take $100,000, he was hesitant to respond, in fact he refused to respond to repeated inquiries.

We helped him with his math offering that it added up to approximately $3.6M but we couldn’t get him to say the words.  Finally he was forthcoming enough to state that there were additional legal costs he hadn’t included in the report. Most notably these were outside legal costs. When asked to place a number on these he said he’d have to get back to us and the Board.  Scott repeatedly said the missing numbers would be skewed by settlements. So some of the Board started following up with questions.  Scott kept using Turlock Irrigation District (TID) as his comparison.  But when asked to produce TID’s  numbers so we could compare apples to apples he claimed he’d need to get TID’s permission. Obviously Scott was stalling since these numbers are public domain.

Scott had been saying all along that we paid more then TID for legal costs but had nothing to back up his statements.  Questions were finally asked why he hadn’t checked with other districts for comparison. Obviously it didn’t suit his and Director John Mensinger’s preconceived position that outside services would be better.

John Mensinger kept trying to interrupt the questioning saying he’d heard enough but even Director Stu Gilman was getting curious now.  What they didn’t mention and since public comment is only 5 minutes so we didn’t get a chance to ask, was about the comparison.  TID’s budget is less that half of MID’s. ($164M vs $429M) and it’s safe to say that MID’s 122,000 electric customers are several times more than TID’s.  So why use them as a comparison?  So they can  get the predetermined outcome the ruling cabal desires.

And since we’re just trying to be helpful we have made a Public Record Request from TID for their legal costs for the last three years.  Scott seems to produce more reliable numbers when someone is looking over his shoulder.  The public needs to look out for themselves now since our compadres in this fight on the Board are out numbered.

It’s starting to sound like 2011 all over again.  And that bodes ill for the ratepayers.

For the follow-up see MID’s Missing Legal Costs

 

The House Modesto Gets Flimflammed at MID

By Emerson Drake  

On October 1, 2017 Pastor Glenn Berteau took a few minutes from Sunday’s service to introduce  lay pastor Stu Gilman and to ask for the congregations’ support and vote for Stu Gilman.  Pastor Berteau reminded the congregation that Stu is a personal friend of his and a friend of The House along with being a board member of The House.  Stu made a promise to the congregation that day. He said for years they had been overpaying for electricity and he would get them a rebate based on how much money they had spent on electricity.

Stu was subsequently elected to the Modesto Irrigation District Board and MID was facing a law suit from ratepayers.  He and the rest of the MID Board decided to commission a Cost of Service Study from Bartle Wells Associates and MRW & Associates to defend against the pending lawsuit.

Now to the meat and potatoes. The ‘report’ basically said apples were oranges and up is down.  It’s an agreed upon fact the water delivery side was facing a $17 Million shortfall every year.  And the electric ratepayers have been overcharged to pay for steeply discounted electric rates to large companies (read below cost in some cases), to pay for the water losses and to buy a percentage in the natural gas powered Lodi plant.  The Lodi plant is where their profits come from and are called ‘discretionary funds’ by the report.   The report states if MID’s Board has a policy they can point to that allows them to spend the discretionary funds as they see fit, that could include cars, boats. subsidizing farmers and large businesses including Gallo.

Stu Gilman and the rest of the Board voted to support the report and if it holds up in court it removes any possibility for the congregation and quite honestly the rest of us ratepayers to not only get a rebate but to get an even break in MID’s repressive rate structure.  So when the rubber met the road Stu supported MID and abandoned his congregation and the rest of the ratepayers.  Stu had his chance to stand up and keep his word to us but he showed his true colors and instead became just another one of them.  We had hope and gave him rope, and look what he did with it.

One of the issues is the essence of religion is submission to authority and for supporting Stu Gilman, Pastor Glenn must accept some responsibility for the outcome.  People expect their Pastors, Ministers, Priests, and Spiritual Advisers to look out for their best interests when they demonstrate their support for candidates or ballot measures from the pulpit.  As happens often in life the people that need the breaks the most get screwed but when it happens to you, by the leaders of your church, you should be asking questions.  Lots of questions.

And your belief in their answers is discretionary.

MID’s Tom Van Groningen’s $110,000 Financial Conflict of Interest

By Emerson Drake

Modesto Irrigation District has been generous in giving away ratepayers money for many years.   Director Tom Van Groningen has voted to

Money

Money (Photo credit: 401(K) 2013)

give  the Stanislaus Economic Development and Workforce Alliance $110,000 dollars.  Starting suddenly  in 2008, they donated $20,000 a year for five consecutive years, and only cut back this year  (2013)  after the community and Director’s Larry Byrd, Nick Blom and Paul Warda fought back. We spoke to the Board several times prior to the last donation, pointing out the Alliance is a 501 C (6) which means they’re allowed to lobby and give their investors an IRS business deduction.  We also pointed out that the Alliance’s CEO Bill Bassett had blatantly lied to the Board to receive a larger donation.  I always wondered why Director Tom Van Groningen fought so hard to give away  MID’s money, well actually the ratepayer’s  money, that’s right, your money and mine,  to a private company who specializes in lobbying efforts.  Maybe  now we have the answer.

Here is the Public Records Request response which has the donations listed   Slegal13051013420 (1)

It appears Director Tom Van Groningen is not only on the Alliance’s Board of Directors, http://stanalliance.com/index-abt-brd.php his company, TVG Consulting which he’s the sole owner of, according to his linkedin page, is a member of and an investor in the Alliance.  http://www.linkedin.com/pub/tom-van-groningen/11/929/809  are investors  http://stanalliance.com/index-abt-invest.php

The problem as I see it is Alliance CEO  Bill Bassett has always said “the investors EXPECT a return on their investments” and the more investments the larger the return.  So if  Director Van Groningen donates MID’s Money he’s likely to see a larger return for HIMSELF and his company along with playing the big man to his buddies on the Alliance. Who knows, maybe that’s how he made the Board in the first place.

A conflict of interest…. It’s well know by now that Judy Sly protects, defends, and supports  MID Director Tom Van Groningen and MID’s secret lobbyist Mike Lynch, but why is she keeping this conflict of interest from the public?  Why did MID’s attorney Tim O’Laughlin allow the conflict to continue since 2008? Didn’t Tom file this investment (financial disclosure) in the Alliance with the state?

Are you as tired as we are of the Bee’s  Editorial Staff  hiding the facts from the public in order to protect their friends?  Could one of the reasons be because the Modesto Bee has donated $100,000 to the Alliance too?  Are you starting to understand why Judy Sly has kept her personal connection with MID’s secret lobbyists Mike Lynch, Mark Looker, Janice Keating, and Carol Whiteside  on the down low? Remember these four lobbyists received $125,500 from MID ratepayer funds while only invoicing them for $1,500 in 2012 all thanks to Director Tom Van Groningen.

MID Watches, Ball Four Called on Water Rate Increase

English: A picture of two dual-circuit power l...

By Emerson Drake

We’ve attended some very strange MID meetings but the wrangling of today’s meeting ranks right at the top.  The discussion topic was the water rate increase of 10% max. and the farmers’ water allotment of 36 inches for this year.  Extensive discussion had taken place in prior meetings and most MID watchers believed this vote was a no-brainer slam dunk.

But as usual just when you think you have a hand on the  issue, reality smack you in the face. First Glen Wild mistakenly put forth the idea the Citizens Water Committee, which has been looking into potential system upgrades believed necessary to our canal system, was going to make rate recommendations too.  Board President Nick Blom pointed out the Committee wasn’t there to make current rate increase suggestions. Director Paul Warda, a walnut grower,  made a motion to support both staff recommendations as is. But surprisingly, this was met with silence.  The recalcitrant coalition of Directors Tom Van Groningen and Glen Wild, who have been consistent  in their opposition to anything the majority of the directors try to accomplish, were doing a silent version of whistling and looking around while the President was waiting for a second. Another  example of their ongoing attitude came later when Paul Warda made a motion to pass the small consent calender.  He was again met with silence prompting him to ask if he had “pissed someone off.”

The dynamic duo of Van Groningen and Wild, who had been in control of the MID Board for all of all of 2012, lost control in January, when Nick Blom became President and Larry Byrd became Vice President with the support of Paul Warda. But recently they’ve become like a teenagers sulking when they don’t get their way and making mischief.

Because of behind the scene maneuvering, Director Byrd remained silent instead of seconding Warda’s motion 0n the water rate increase and allotments.  So NOTHING happened.  Unbelievable but true.  After the meeting none of the Directors wanted to address the issue.

Could Tom Van Groningen and Glen Wild  be attempting to create an issue for anyone running for these two lame duck’s seats?  A straw argument since they refused to even vote for the 10% increase.

Another question that came up was why MID spends ratepayer money to fund publications which run fluff pieces on politicians in Modesto. Can it be the $1,000 contributions given to Van Groningen and Wild are being repaid to the Chamber of Commerce by buying ads in magazines that support candidates of the Chamber’s choice?  In Modesto politics one hand often washes the other.  We have consistently  made  inquires to find out how MID decides to spend our money but so far we are being met with silence.

Some Suggestions to the MID the Bee Finally Got Around to Liking

Two hangman's nooses and gallows behind the co...

By Emerson Drake

I’ve been going to MID meetings for more than six years, writing about them for just short of five and been talking on the radio about them for four years in February.  During that time I’ve consistently made some suggestions hoping they would be implemented. But honestly, they haven’t gained any traction until recently.  Others have joined me in making these requests from time to time, and I’m not trying to claim the ideas were all mine.  During Mike Serpa’s time on the MID Board we had someone who cared, but one person on the Board couldn’t  get anything on the agenda (unless your name was Tom Van Groningen or Allen Short) let alone manage to create real change in the way things were done, no matter how hard they tried.

Even with the addition of Directors Larry Byrd and Nick Blom it took ten months to get to the point of generating and possibly passing some out of the box ideas (for MID) that other public entities have been utilizing for years. MID does place their agendas on-line but they remove them before the next meeting, never to be seen again without a Public Information Request and most of those are drawn out to the legally  mandated limit of 10 working days at best even when the information is readily available. They also seldom place supporting material on-line linked to the agendas like other public agencies do.  See the City of Modesto’s website as an example of doing things the correct way.

The Board’s policy is to destroy the electronic records of the meetings 100 days after the meeting. I’ve never understood this policy especially since they wait until AFTER the records are destroyed to approve the minutes. The October 21, 2012 agenda shows them approving the minutes from 6/23/12, a delay of 120 days.

We’ve asked the Board repeatedly to preserve the records and place them on-line along with streaming the video live. They’ve consistently refused to seriously consider any of these suggestions.

As recently as last week I once again repeated the request for separate email addresses for the Board members that the General Manager wouldn’t be privy to. Why should he or his replacement be monitoring a Board member’s communications?

The MID’s Purchase Orders process needs to be better defined. Here is the part of the resolution staff has been willing to share. Director Van Groningen brought the above to me for one of our private meetings and I don’t know if he shared it with the rest of the Board or not.  A complete copy will be handed out  to the Board on Tuesday at the scheduled meeting.   This is what he/staff  provided, a partial of Resolution 2010-35.

3.Contract Purchase Order 54981 issued July 2010 states that it is effective through December 31, 2011.

This PO is for services to “Refocus and Enhance Public Education and Information Services per Board Resolution 2010-35.”  These services included a variety of consulting activities through subcontractors retained by Martino Graphic Design with MID’s approval.

This Project was undertaken at the direction of the Board in accordance with the referenced resolution, stating as follows:

The Board of Directors of the Modesto Irrigation District does hereby authorize and direct the General Manager to continue implementing legislative and regulatory activities to further the goals and interest of the District in State and Federal jurisdictions, including…7.  Implementing a program to improve the image and credibility of the District with is ratepayers.

As an example Staff currently believes after reading the above  Board Resolution 2010-35

  • Based on the foregoing resolution, the General Manager clearly would have had the authority to make expenditures under this PO, and to extend the time and not-to-exceed value of the PO;

In other words they (Short’s staff)  support the idea the GM can not only indefinitely extend a purchase order time limit but that the not-to-exceed value is meaningless and the GM is given Carte Blanche or an open checkbook, if you will.

 I don’t believe that’s what the true meaning of the resolution is and  I haven’t been able to read the entire resolution due to their foot-dragging response to Public Information Requests. But that is the portion the quote as applicable.  These aren’t the General Manager’s private monies, they are ratepayer supplied funds. We deserve a staff who believes in responsible controls, a staff who won’t create verbage to support the GM’s desires and lacking that,  the Board needs to provide unquestionable guidance and  a promise of a dire consequence when its instructions are flaunted. An area in the past where they’ve fallen woefully short.

GM  Short’s staff may be trying to create an “out” but in my opinion it’s  an inappropriate use of money  that cannot be overlooked or swept under the rug.  How many other occurrences of this type of malfeasance in office have taken place?

The phrase “Not to exceed” on purchase orders means what it says. It doesn’t mean spend however much you want.

We want to thank Directors Byrd, Blom, and Warda for pushing these ideas to the forefront.  Now lets bring them home.

In Sunday’s Bee, Judy Sly finally gets around to agreeing with many of the items we’ve been suggesting for years.  Thanks for getting on the “Band Wagon” Modesto Bee, now help us follow through with the rest of the many, much-needed changes.

Modesto Irrigation District Meeting: The Changing of the Guard

By Emerson Drake

Newly elected MID Directors Larry Byrd and Nick Blom took their respective seats on the dais today.  For the many who have never been to a MID meeting the dais is U shaped with the two end seats facing each other.

While they don’t have officially designated seating, in days gone by they actually sat by the number of the district they represent.  But with the seating of the two new Board members, Glen Wild, Division 1, apparently felt the need to sit next to his mentor/advisor in all things MID, related Tom Van Groningen who has been sitting on the far right.  Van Groningen, Division 3 used to be in the middle but when Paul Warda was elected Board President a year ago, Paul assumed the center seat.

 Hey, Wait a Darn Minute. Is Our Electricity Costing More then Necessary?

The quiet yet controversial discussion revolving around MID’s unusual way of approaching their “green” portfolio is curious.  Currently MID has renewable energy at 27% of our generating needs and that will increase to 29% when the McHenry solar acreage comes on line.  By law we aren’t required to have even 20% until 2013 and 28% until 2016.  While all of us appreciate the head start toward mandated goals, it means we as ratepayers are being required by MID to pay more for our electricity than actually necessary.  To put MID’s energy costs in perspective, hydro electricity is .03 kwh.  Gas turbine generation costs are .06-07kwh. The recently negotiated solar costs are .14-17kwh and escalating as time goes by depending on which numbers you quote

These surpluses do roll over but they only roll for 36 months. These credits are nice but MID didn’t offer information to show how much we actually benefit as these credits get “stale” and fall off,  and are lost.  With our excessive “head start” the extra money MID ratepayers are  now paying will be wasted and lost. 

I have to admit their story sounds nice until you sit back and think about it.  Then “Hey wait a darn minute” comes out of your mouth.

The decision was made to sign a contract with Fayez Sarofim and Company to transfer about $33 million dollars from under G.E. guidance since it was felt that the investments G.E had been overseeing had been underperforming for the past two years.

A squabble over the Don Pedro Recreation Agency’s (DPRC) desire to raise overnight fees on weekends and to almost double the cost of going to the “Fireworks Day display” has been brewing for about four weeks. Former Board member Cecil Hensley had been against the rate increases and Larry Byrd is continuing his stand against raising the rates.

It first appeared it was going to be a 3-2 vote with Byrd and Blom against and Warda, Wild, and Van Groningen in favor.  But at the last minute Van Groningen voted against the increase and requested staff member Bill Ketchner to approach the DPRC and attempt to talk with them again.  This is interesting because Cecil Hensley, who Larry succeeded when Cecil retired, was a voting member and MID’s representative to the Dom Pedro Rec. Agency Board of Control and it was expected Larry would assume the role as MID’s torch bearer.

The two members of the public who spoke were against the rate increase.  One speaker noted that other the members of the  DPRC,  who are  Turlock Irrigation District (TID) and the City and County of San Francisco, don’t seem to have a problem with raising the rates on the weekend campers without exhausting cost cutting efforts first since weekends are usually booked close to capacity.  And that San Francisco was known for their “Tax and Spend” approach to financial problems and hoped MID would stand against taking the easy way out.

In a final bit of business for the year, Tom Van Groningen was elected Board President for the next year and Van Groningen’s sycophant and rubberstamp, Glen Wild, will be the Vice President.

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