MID Board of Directors

Modesto Irrigation District (MID) Board Meeting of Tuesday, July 22, 2008
Media contact: MID Public Affairs Department, Melissa Williams, 209 526-7390
The next MID Board meetings will be August 12 and 26, September 9 and 23.

Staff reports

Water Report

Walt Ward, Assistant General Manager of Water Operations, reported that the Tuolumne River flows are at 95 cubic feet per second (cfs).  MID, together with TID, continues to monitor the flows and adjusts to about 115 cfs on days when temperatures reach triple digits.  Results of these flow adjustments have been good for the fishery thus far this summer.

The MID irrigation system will be running at its peak for the next two to three weeks.  Operations will start winding down in mid-August.

Don Pedro Board of Control Report

Director Cecil Hensley reported that year to date resort revenue is at approximately $809,000 and year to date expenditures are at $847,000.  Also, despite a better turnout for the July 4th fireworks show than last year, revenue was down nine percent over the holiday weekend.

Electric Resources Semi-Annual Operations Review

Assistant General Manager of Electric Resources Roger VanHoy reported that the dry year, natural gas prices, shifts within TANC’s new transmission program and a decrease in wholesale sales have impacted the Electric Resources budget. Expenses are approximately $11 million over budget and wholesale revenue is approximately $3 million over budget. 

Staff is reviewing a variety of renewable energy proposals including solar thermal, solar photovoltaic, wind, geothermal, biomass and methane digester projects.

Second Quarter Financial Reports

Controller Jake Sonke and Assistant Treasurer Don Dermond presented the second quarter financials.  Key points included:

• Operating revenue is down $7.3 million and operating expenses are down $4.3 million.
• Retail consumption is up approximately 1.2 percent over last year.
• As of June, investment activity for MID and MID trusts had a market value of $231.6 million.  The $124.4 million investment portfolio for MID is allocated 67.6 percent Federal Agency Issues, 23.7 percent Corporate Medium Term Notes and 8.7 percent Managed Pool Accounts (LAIF).

The complete financial reports (PDF) can be found online.

Mid-Year Budget and Finance Review Workshop

The MID Finance team led a workshop discussion covering a review of 2008 cash flow projections, the state of natural gas prices and hedging, exploration of various rate options for 2009 and recommendation to expand pay-as-you-go financing.

Approved by unanimous vote

• A resolution to reject all bids for the Modesto Regional Water Treatment Plant EIFS Repair and Roof Replacement Project and to direct staff to initiate the re-bidding process.
  
• A resolution authorizing the General Manager to take the actions necessary and appropriate to acquire, install and maintain system continuity for Sun-Net’s Transmission Outage Application Outage Management System Software.
  
• A resolution approving the Retirement Committee’s recommendation for a new Investment Consultant and approving the General Manager, Treasurer and Assistant Treasurer to execute an Investment Consulting Agreement between MID and Diepenbrock Group of Citi Institutional Consulting and authorizing specific District employees to open tracking accounts for MID Retirement System plans.

Approved by majority vote

• Placing discussion and possible action of televising the MID Board meetings on a future Board meeting agenda.
  
• Placing discussion and possible action regarding violations of District Rules and Regulations by Director Serpa on a future Board meeting agenda.