MID Board Report Archive

Modesto Irrigation District (MID) Board Meeting of Tuesday, Oct. 30, 2007
Contact: MID Public Affairs Department, Kate Hora, 209 526-7454.
The remaining MID Board meetings for 2007 will be Nov. 13 and 27 and Dec. 11 and 18.

The MID Board Report is a summary of highlights of meetings of the MID Board of Directors and not a complete or official record of proceedings. Official records of proceedings of the MID Board of Directors are contained in the Minutes of meetings of the Board of Directors. For information about the Minutes, please contact the Office of the Board Secretary, 1231 Eleventh Street, Modesto, CA 95350, telephone 209 526-7360, 8:00 a.m. - 5:00 p.m. Monday - Friday, excluding holidays.

Staff and director reports

Water report

Walt Ward, Assistant General Manager for Water Operations, reported ditchtenders are accommodating the last few water delivery requests of the season before shutting down the canal system tomorrow, beginning at the eastern end. Attention will now shift to winter maintenance activities. In addition to customary trash removal and gunite application, major work this winter will include:

• Lining the Lower Waterford Main Canal with concrete
• Replacing old cast-in-place concrete pipe with plastic or PVC pipe, and
• Building three new overflow weirs.
  

On the upper Tuolumne River, the Hetch Hetchy reservoir system currently has only 58 percent of normal water storage levels. Elevation in Don Pedro Reservoir is 757.14, down 38 feet from this time last year but still right at the long-term average. Given the very poor water conditions of the last months, it is a tribute to skillful management that the reservoir has been maintained at even average levels.

Customer Billing System update

An update on the Customer Billing System (CBS) was provided by Lou Hampel, Assistant General Manager, Finance and Treasurer. Billing accuracy has improved markedly since the system went live two years ago and remains stable at a level of 99.5 percent or better. Future efforts will focus on making the system run faster, making it more user-friendly and incorporating irrigation billing into the system.

Monthly financial report for Sept. 2007

Controller Jake Sonke reported a $6.6 million decrease in reserves at the end of Sept. 2007, with a $10-$11 million decline expected by year’s end. Other significant financial items:

• Cash on hand was $146 million on Sept. 30 with a like amount expected at year-end.
• MID had an overall net loss of $9.4 million on Sept. 30, with a projected year-end loss of $12.5 million.
• The projected loss is due to the bad hydro year and a resulting increase in the cost of power.

Assistant Treasurer Don Dermond reported that the maturity of the investments in the District’s general fund was lengthened in late 2006 to lock in interest rates in anticipation of a rate decline. This resulted in an increase in interest income and a gain of $600,000 in the market value of the portfolio.

Approved by unanimous vote

• Placing a discussion of televising MID Board meetings on a future Board agenda.
• A resolution declaring items as surplus and no longer necessary for District use.
• A resolution approving a multi-year contract with Virchow Krause & Co. for financial audit services.
• A contribution of $25,000 to the Association of California Water Agencies for its public education campaign entitled California’s Water: A Crisis We Can't Ignore.
• An auto-dialer for the Customer Service Department. The auto-dialer will place courtesy calls to electric customers 48 hours prior to disconnection for non-payment, as required by law. At a cost of $35,000, this is more economical and efficient than the current practice of having a temporary agency employee place calls.
• A resolution approving the proposed 2008 Table of Organization, as amended to reflect the Board's approval of the auto-dialer for Customer Service.

The Table reflects a total of 456 regular positions and 18 succession planning positions. MID is adding only one net new permanent position for 2008, an increase of less than one-half of one percent. Total estimated budget impact of all staffing changes is $375,000.

• Summary of staffing changes for 2008:
  Total new positions - 4
  Total succession planning positions - 4
  Total reclassified positions - 2
  Total deleted positions - 3

Approved by a majority vote

A resolution approving a $452.6 million budget for 2008 (see following table).

Notes:

* All dollars in millions.

**  Includes operations & maintenance, plus cost of power supply. Power supply is 49 percent of total  MID budget for 2008, 74 percent of operating budget.

***100% of domestic (drinking) water expenses are reimbursed at cost by the City of Modesto, including all costs related to the Modesto Regional Water Treatment Plant.