First of all, I would like to congratulate MID on their press coverage in the McClatchy BEE this past weekend.. As I have been noticing in the previous two weeks, and again this past weekend, you must have a dream team getting your information in the newspaper.
I especially love the way it is displayed on the front page. The reaction of the public on the proposed rate increases, your empathy, and the articles right next to it saying MID is being watched or has lowered financial ratings. It is quite a show.
Those articles conveniently placed side by side might sway some, that the increases are the only solution and MID has been forthcoming and diligent in looking at other solutions. However, I have concluded after reading the articles, that MID is planning to raise our rates regardless of the publics input.http://www.modbee.com/local/story/1020937.htmlhttp://www.modbee.com/local/story/1020941.html
Secondly, when the subject of Mountain House came up at the last meeting no one from MID could give the numbers on the revenue or expenses because MID does not keep track for that community separate from other operations. Please do tell me, how MID can run efficiently if they do not know which communities are profitable and which ones are bankrupting MID?
Common business sense dictates, MID should look at individual communities to separate those that are profitable and which ones we should possibly pull out of? After being pressed, the Sunday news article stated, MID projected Mountain House costs will exceed income by $8.8 million until 2015. Over the next decade, as the community expands, income will surpass costs by $20 million. If we did the numbers based on the 8.8 million per year, for the next five years, there would be an additional loss of 44 million.
This does not include the losses for the past eight years; I will venture a guess that those numbers are substantially higher. In addition to this loss, how accurate can these numbers be since they are dependant on the community growing at the rate your numbers are projecting? When we entered into Mountain House were the numbers not significantly higher?http://www..modbee.com/local/story/1020937.html
Thirdly, as per MID’s website which states, no COLA since 2007. Before you raise our rates, we have the right to know how many employees are getting the 3.5% merit raises and what this means in dollars and cents. Until 2007, COLA was at 3% and merit raises were at 3.5% for a total of 6.5% possible yearly increase.
What I find extremely offensive is the information the Modesto Bee provided that merit raises are given, however, most employees do not get them because they have reached their top salary. How lucky they are to be an MID employee. As per MID’s website (and documents provided at this meeting) there are 46 unfilled positions with a savings of 2.8 million. 2.8 million divided by 46, would mean the average salary is $60,869.
It goes on to further state, 1 furlough day per month, savings would be 1.8 million. 422 multiplied by 12 is 5,064. 1.8 million divided by 5,064 is an average of $355.45 per day per employee. $355.45 per day, divided by 8 hours is an average of $44.43 per hour. How can you justify rate increases when there is this much personnel overhead? http://www.mid.org/board/agenda/att09.pdf
Finally, I would like to address the cost and the efficiency of the solar farm. MID has recently extended an existing 25 megawatt and expanded a Power Purchase Agreement with Iberdrola Renewables to June 30, 2015. MID will be expanding the PPA to 50 MW from July 1, 2015, to June 30, 2028, MID has a goal of getting 20 percent of its energy from renewable sources by 2017.
The power from the contract comes from the High Wind Energy Center located in Solano County, California. Per Allen Short, MID’s General Manager. “With this expanded PPA, MID now gets 19 percent of its portfolio from renewables.”
If this is the case, why do we need to rush into this solar project now? As we all know, from year to year, advances are being made on the technology and lowering costs of solar power. Would it not make more sense to wait another two years to acquire solar renewable energy? Does it not make sense to put this project off for a couple of years when MID is more solvent? http://finance.abc30.com/abclocal.kfsn/?GUID=11236911&Page=MediaViewer&ChannelID=3191
I would like to leave you with one final note, per the Bee, MID reported a 40 percent increase in late bill payments last year over 2008, along with a 15 percent jump in service disconnections. What do you suppose those numbers will be for 2010 after you raise our rates again? http://www.modbee.com/local/story/1020937.html
Sincerely, Jolynn Wilder
This letter was read into the minutes of the Modesto Irrigation Board at the last meeting by its author where it received an ovation from the audience upon completion.
