Eye On Modesto

Thoughts and observations about Modesto and Stanislaus County

Archive for the tag “Modesto California”

22 Jul 2012

Where is Assistant City Attorney Rollie Stevens?

By Emerson Drake

While it doesn’t have the same connotations as asking “Who’s John Galt?” , “Where is Rollie Stevens?” should make people stop and think.  Rollie Stevens was Modesto’s  Attorney negotiating the water contract between the City of Modesto and the Modesto Irrigation District back in 2005.  This contract spells out the fact that Modesto and the Farmers stand first in line for OUR/MID water.  MID has demanded and Mayor Marsh has acquiesced to, Rollie Stevens absence at any talks between MID and Modesto.  Why?  Because MID knows Mr. Stevens is the most knowledgable  individual on the city staff regarding this contract which is vital to Modesto’s long-term BEST interests.

MID is supposed to be owned by the ratepayers but over the years, we ignored the MID Board and allowed the Board to spend/waste Millions of dollars unchecked, and at an ever-increasing rate.  In recent years the public exposed several of their ill-fated ventures.  One was the TANC project that the MID General Manager led, and despite public outcry against it, the proposal was curtailed only when (SMUD), Sacramento Municipal Utilities District came to their senses and pulled out of the monstrosity of overspending  that General Manager Short had helped to create. The cost to MID was approximately $5 million dollars.  The second was the Bio-Mass/ Garbage burner Project of Stephen Endsley.  After discovering how badly they were being duped by Endsley and MID, the MID ratepayers rebelled and finally MID pulled out of the garbage burner business.  The cost to ratepayers was $1.2 Million plus MID Attorney Tim O’Laughlin pocketed a cool $92,000.00 for this project alone.  This was despite being assured by attorney O’Laughlin that MID had no exposure to litigation. It seems it’s all a mater of perspective with O’Laughlin, who lives in Chico,  and doesn’t buy water or electricity from MID.

Now MID is pretending the small sale of 2,240 acre feet isn’t important, but as always the devil is in the details.  And the details here which bear importance are;  if the contract is signed, the San Francisco Public Utilities Commission will be first in line for any MID water for the next fifty years, yes before Modesto and the Farmers, and has first right of refusal over any potential water sales MID might care to make.  The contract also sets a price for future water sales which includes an extremely small price escalator.

Just as important and maybe even more so because of its size is the looming 25,000 acre foot sale.  MID intends on pursuing it immediately after the 2,240 sale, so both sales should be considered at the same time by ratepayers trying to make a decision.  We also need to consider the small sale doesn’t pay for anything. The 2,240 acre feet times the $700.00 per acre foot comes to $1,568,000. yearly.  At this rate it will take 70.79 tears to pay for the $110 Million in infrastructure the MID Board claims we need.  And yes, the much larger sale triggers an EIR or Environmental Impact Report but with the SFPUC  footing the cost and being the lead agency, stopping it at that point is a much harder task than most realize.

Now back to the initial question of  “Where is Rollie Stevens.”  To use a sports metaphor,  it’s like playing a Superbowl and having our coach decide to bench our all-pro quarterback or 2,000 yard running back because the other team doesn’t want to play against him.  Why would we concede to those conditions?

This is the $64,000 question we need to ask Mayor Marsh. 

So Mayor, why are you keeping Rollie Stevens on the sidelines? 

Modesto and the farmers need to stand shoulder to shoulder on the water sale issue.  Agriculture is the economic driving force in the Central Valley and we need to nurture it.  And as we all  know,  if you want to keep something alive in the Central Valley, you need to water it.

We have NO extra water for sale to San Francisco.

Rollie Stevens, we need you.

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20 Jul 2012

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.

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02 Jul 2012
4 Comments

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.

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27 Jun 2012

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
 
Related articles
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20 Jun 2012

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.
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01 Jun 2012

An Interesting Email Exchange Between Garrad Marsh and Dave Thomas

This exchange was Modesto Mayor Garrad Marsh and Dave Thomas President of the Stanislaus Taxpayers Association.

Garrad, et al. it is clear that inquiring minds want to know what is really going on with our water policy.  The message below was sent by an inquisitive person.  Please amend my PRA of this morning to include the questions below.
It should be obvious that any document which is used in negotiating with MID regarding an issue that involves a 218 expense is clearly in the public domain.  Again, I trust that you will send me the “Term Sheet” relating to your negotiations with MID immediately.
This proposed scheme by City to take over Surface Water Treatment Plants MUST be fully disclosed to the Public, and soon.
 


Dave, 
As you can see from item 19, copied below, on the just-released agenda for Tuesday’s meeting, the mayor has already discussed the Prop. 218 process to fix the water plant with the City Council. When did that discussion occur? 

When was the decision made to order staff to start the 218 process? Was this decision reported to the Public?  If this was discussed under potential litigation, a Prop. 218 vote has nothing to do with litigation. 


It’s clear to me they’re in the habit of discussing the public’s business in closed session, and that is a violation of the Brown Act.  Would you check on that?
 
19. 

Consider approving Amendments related to updating the Water Rates and Capacity Charge Study regarding the proposed repairs to correct the design and construction deficiencies of the Modesto Regional Water Treatment Plant Expansion:  (i) Financial Consulting Solutions Group, Inc. in an amount not to exceed $64,148, plus $6,147 for additional services (if needed), for a maximum amount of $313,508; (ii)  Horizon Water and Environmental to perform environmental review work in an amount not to exceed $14,951, plus $1,495 for additional services (if needed), for a maximum amount of $16,446; (iii) Harris & Associates related to the Proposition 218 Process for water rates, in an amount not to exceed $13,495, plus $4,580 for additional services (if needed), for a maximum amount of $64,065; and amending the Fiscal Year 2011-12 Operating Budget in the amount of $100,191 in order to fully fund these Amendments and Agreements necessary to update the Water Rates and Capacity Charges. (Funding Source: Water Fund)

 

 
Thank you very much, Dave
P S      I think it is shameful for the Council to hide a $394,019 dollar water expense in the 19th of 22 agenda items, which will be discussed after most people will be in bed.
  Moreover, we know that that $394,019 will be diverted out of the Water Enterprise fund.  It just never ends, does it?

=

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21 May 2012
1 Comment

Where Have all the Watchdogs Gone

By Emerson Drake

Once upon a time you could expect your local newspaper to keep a close watch on things, but as we’ve all noted in recent years the Bee has vacated their responsibilities in this regard.  Now don’t get me wrong,  they were very forthcoming in the SCAP scandal but everyone had to notice when it came to the NSP2 funds all of a sudden things became quiet. 

The business community led by the Chamber of Commerce and others put pressure on the Bee to rein in their questioning of people with dirty hands like Councilman Muratore.  His taking of the $62,000 was noted, but quickly put aside when he returned the money, while failing to mention taking the money was a felony.

Just like they did with Joe Gibbs, the businessmen who stood to profit from the NSP2 funds, urged the Bee to back off.  Remember with Gibbs was guilty of hit and run in connection with a death,  but Sheriff Christianson violated his own policy and  listened to those he termed good Rotarians and allowed Gibbs to serve his time under house arrest(via an ankle bracelet). 

Now the Bee has recommended the MID proposed water transfer to go through albeit for the 2,200 acre feet.  By reading the contract, the Bee couldn’t have missed the  right of first refusal for San Francisco on any future water deals and their position of being first in line for all water rights (even before Modesto’s) and allocations during droughts.

After these unconscienable  conditions had been negotiated by MID’s General Manager Allen Short and attorney Tim O’Laughlin and approved Tom Van Groningen, Glen Wild, and Paul Warda, the Bee incredibly also added their stamp of approval. 

We the People have had to Become the Watchdogs

If it weren’t for Director Larry Byrd (whom the Bee refused to endorse because of his stance on this issue) and members of the public, this blatant giveaway would have been a done deal weeks ago.

The well-known adage of the Chamber of Commerce  is “if a Modesto businessman can make a buck then it works for us.”  And when their money men got on the phone after one of their backroom meeting, strings start being pulled. 

But sometimes, just sometimes, things start to go in Joe and Josephine Average’s favor.  In this case it was average citizens like John Duarte, Reed Smith, myself and a whole host of others who have been stridently against this water transfer/giveaway since June of last year.  The many people who have been speaking out at the MID meetings, County Board of Supervisor and City Council meetings were sighting statistics and gathering data and waking up the public to the injustice being done to the citizens of the central valley by this so-called water transfer.

Every thinking person has to question the integrity of any MID Board members who champions this flight of fancy of Allen Shorts. Not do so would be naive.  Now Short and Van Groningen are waffling. Their failure to safeguard citizens is obvious and  they are now saying the contract could be changed.  Why now?  Because their duplicity has been exposed?   Is it concern about the best interests of the community they serve, or because friends and neighbors are questioning their unfathomable thinking process and  motivations for endorsing the  “special arrangements” favoring San Francisco which are found in the contract?

It was gratifying to see the Modesto City Council stand up to MID and threaten a lawsuit to stop the misguided water transfer. Fortunately many had gone to  Council meetings to protest the giveaway of Modesto’s water rights. The letter to MID from Modesto can be found on this site in an earlier article and until now it was the only place it could be found. All of us thank the Modesto City Council for preventing this fiasco.

Make no mistake, we aren’t out of the woods yet.  Given a chance VanGroningen, Wild and Warda would vote for Shorts version in a heartbeat. Nick Blom seems to be sitting on the fence, but if one believes his campaign promises he’ll vote against the transfers. One thing for sure, we’ll find out if Director Blom is a man of his word or just another politician who’ll say anything to get elected and then kowtow to the local power brokers after they get in office like Councilman Dave Lopez did over the NSP2 deadwood ie:Councilman Joe Muratore.

Vigilance is the price of freedom. And vigilance is what we need to ensure the MID Board is making good decisions because for years now, by following Allen Short’s leadership, they’ve come down on the wrong side of almost every major decision. From the Geothermal project to Mountain House to the Four Cities to TANC they haven’t gotten it right yet and I see no signs, that without strident guidance from the public,  they’ll ever improve.

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17 May 2012
2 Comments

MID is Back to its Old Tricks Obfuscating the TRUTH

By Emerson Drake

MID attorney Tim O’Laughlin manages to drum up business for himself while building walls between MID at its ratepaying owners also known as the public. The following is a copy of, what has become a typical response from O’laughlin to a Public Information Request made by Reed Smith.

Linda Fischer, Paralegal

Modesto Irrigation District
Legal Department
(209) 526-7388

 

I am in receipt of your e-mail dated May 11, 2012 relative the attached response from MID General Counsel Tim O’Laughlin.

 

Mr. O’Laughlin’s letter dated May 11, 2012, does not comply with the District’s obligations under the Public Records Act.  Specifically, the requested records must be produced within ten days.  The District “head” has not provided notice that “unusual circumstances” exist which would result in an extension of the deadline by fourteen days.  Govt. Code 6253(c).

 

I am writing to confirm my understanding of your statements to me when I came into MID yesterday afternoon, May 14, 2012, at 2:30 PM regarding availability of the documents I requested to INSPECT.  General Counsel, Tim O’Laughlin, has by the attached letter, refused to produce any of the documents to date.

 

To restate what I heard you say yesterday afternoon:

 

1)         There are 13 file volumes involved within my request.  [ You did not mention digital files and maps  that have been requested ]

 

2)         When I met with you on April 30, 2012 regarding a very similar PRR, you informed me that AGM Walt Ward was responsible for accumulating the files, and that I conclude from your narrative that the records have been aggregated in a single location at 1231 11th Street, Modesto, CA 95354.

 

3)         GC Tim O’Laughlin says the documents must be reviewed to identify CONFIDENTIAL material within the 13 volumes, prior to release for IMMEDIATE INSPECTION.  To date, the District has not informed me that any of the requested documents are subject to “exemption” from disclosure.  Such a determination was required within ten days from the date of my request.  Govt. Code 6253(c).

 

4)         GC Tim O’Laughlin, has created a scenario where he claims he is the only person that can review the documents to remove CONFIDENTIAL material within the 13 volumes, prior to release for INSPECTION. 

 

5)         There is no definition of CONFIDENTIAL within the PRA.  The PRA requires the District to respond to my request within ten days, May 20, 2012, with either the records or a determination that an “exemption” in the PRA applies to specific records.  

 

6)         You stated that GC O’Laughlin is only in Modesto three (3) days PER MONTH.  This is not an “unusual circumstance” as defined in Govt. Code 6253. 

 

7)         You offered no time estimate for MID’s production of the documents. 

 

I responded to you yesterday that, based upon my understanding of the California Public Records Act intent, this lack of a time-line for production is unacceptable and fails to comply with the PRA.

 

Please let me know if I have misunderstood your communication of yesterday.

 

Self-appointed MID Board President, Tom Van Groningen, promised on January 10, 2012, to conduct business in an open and transparent manner.

 

I now request that the documents be made available by Monday, May 21, at 9 AM, or I intend to seek legal relief to insure that MID complies with the Act.  As a public entity, MID has a fiduciary duty to comply with California law.


Sincerely,

 

Reed Smith

 

From: Linda Fischer <lindaf@mid.org>
Date: Fri, 11 May 2012 16:06:38 -0700
To: Reed Smith <reedsmith@charter.net>
Cc: Tim O’Laughlin towater@olaughlinparis.com>, Allen Short <ALLENS@MID.ORG>, Linda Fischer <lindaf@mid.org>, Angela Cartisano AngelaC@mid.org>, Pat Caldwell-Mills <PATC@MID.ORG>, Colleen Rangel <COLLEENR@MID.ORG>, Walt Ward <WalterW@MID.ORG>
Subject: FW: Message from legal – Written Response to Reed Smith re: inspection on May 14, 2012
 
 Dear Mr. Smith,
 
Attached please find Modesto Irrigation District’s written response to your Public Records Act Request of May 10, 2012 regarding the inspection of the annexation files/documents.  Thank you.
 
Linda Fischer, Paralegal
Modesto Irrigation District
Legal Department
(209) 526-7388
 
From: legal-copier1@mid.local [mailto:legal-copier1@mid.local]
Sent: Friday, May 11, 2012 4:07 PM
To: Linda Fischer
Subject: Message from legal – Written Response to Reed Smith re: inspection on May 14, 2012
 
 
Now you find the pdf sent from MID’s overpaid attorney Tim O’Laughlin.
 
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16 May 2012

Tonight on “What’s on America’s Mind”

Wednesday night at 7:00PM pacific 9:00 Central time

MID’s Lawyer Tim O’Laughlin says NO to timely public information requests by Reed Smith. The buying of a political endorsement from the Latino Community Roundtable,  Modesto’s budget workshops and of course an update on issues that concern all of us especially women.

http://www.blogtalkradio.com/centralvalleyhornet/2012/05/17/whats-on-americas-mind-with-emerson-drake

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23 Apr 2012

Kristin Olsen, the Assemblywoman is a Detriment to the Central Valley

Seal of the California State Assembly

Seal of the California State Assembly (Photo credit: Wikipedia)

By Emerson Drake

Once again the grandstanding of Assemblywoman Kristin Olsen has wasted our time and money.  Her latest foray into bill writing has been pushed to the wayside. Her feeble, poorly written bill AB1861 which makes a felony for any teacher to have a romantic relationship with a student even if the student were over 18.  While this feel good measure might appeal to some, it mostly seems to be  geared to throwing meat to her base using a newly found popular cause.

She dutifully ignores any and all other occupations where a minor might fall prey to a person in power. Taking away ones retirement might seem to be just but why not apply it across the board.

We believe teachers shouldn’t be singled out when so many professions  come into contact with minors.

If  Ms. Olsen would ever truly apply herself to improving the economy, or any effective  goal other than  the pointless self-serving one she has chosen we could at least consider her for Assembly District 12, but with her track record we would be better off retiring her from public office.

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