IID could face 200 job losses By BRIANNA LUSK, Staff Writer
Tuesday, February 12, 2008 11:46 PM PST
More than 200 positions in the Imperial Irrigation District's energy department are at stake based on a pared-down 2008 budget revealed Tuesday.
Without any capital funds to spare, Chief Financial Officer Bob Vodzack said $20 million in energy payroll is unfunded for the current year.
That amounts to between 200 to 230 employees from engineers to linemen that would have nothing to work on due to budget constraints.
That is an addition to a number of positions throughout the district that will go unfilled.
"This is what happens in delivering a budget with no rate increase," Vodzack said. "Keep the lights on, repair the poles and that's it."
It was the first look at a budget that had been stripped down to its "bare bones" after the IID board refused to adopt a budget based on a 6 percent base rate increase for energy customers. The district has continued to operate without a budget and new projects have been put on hold.
The proposed rate increase would have averaged $70 more a year for the average customer.
Vodzack unveiled a budget that he said was equal to financial trouble for the district, with little to spend on new, critical projects including transmission and a pole replacement program.
Reserves would fall to critical levels and going to in-vestors for financing would be costly, Vodzack said.
Additionally, rising costs in energy are not being passed on to the customers through the Energy Cost Adjustment, leading to a loss of $34 million dollars. The ECA typically pays for fluctuating costs in power and gas commodities.
The rate has been lower than it should be, Vodzack said.
Director Anthony Sanchez said he is willing to see the ECA change.
"I don't know how we're afraid to put rate increases on customers when our costs are going up," Sanchez said.
The ECA could go up 20 percent if it were to truly reflect what IID is spending, Vodzack said.
But by 2009, the avoidance of base rate increases is unlikely, Vodzack warned.
Director James Hanks said a lack of strategic planning has caught up with the district.
"That's what we've been missing," Hanks said.
Hanks added purchase power and contracts that were locked in for extended periods of time that may have cost the district more money than necessary.
He is still waiting for accurate numbers from district staff later this week on that issue, he said.
Director Mike Abatti was concerned with how the budget cuts could affect the district's financial health.
"I think we're cutting too much meat off the bone," Abatti said.
A rate increase isn't out of the question, Hanks said if it is discovered that the rising costs in energy are legitimate.
"Once we do that, I'll vote for a rate increase," Hanks said.
Interim Energy Manager Mario Escalera said he has done all he can to cut costs.
"If you cut any more you are going to affect this department's ability to function," Escalera said.
ALL-AMERICAN SPILLS 50 ACRE-FEET
A dam separating the old All-American Canal from the newly lined portion was breached Monday, sending 50 acre-feet of water down the unfinished corridor.
Much of that water was recovered, Imperial Irrigation District spokesman Kevin Kelley said, and the cause is not believed to be the recent earthquakes in the area.
There was no interruption in service but the district is looking into what happened.
"This was unexpected," Kelley said. "Determining how and why the breach occurred will be really important."
The district has been diligent about accounting for the time, money and water expended as the canal is lined.
The long-term project is an effort to prevent water from seeping into the dirt banks and is part of a larger conservation effort.
Water flowed into the channel of the All-American Canal, which was only partially lined and eroded the southern bank of the canal that was unlined.
The contractors are going to have to rebuild that bank, he said.
The repairs to plug up the compromised section are about 75 feet long.
Kelley said the contractors, Ames Construction of Phoenix and Coffman Specialties of San Diego and Kiewit-Pacific Co. of Vancouver, Wash., may have to pay for the incurred costs that resulted from the breach.
"There's going to have to be some sort of accounting and reconciliation with the contractor," Kelley said.
So far the project has been ahead of schedule, Kelley said.
" Everyone raise their hand that thinks the best yeah sure can do to make a point is to name call and try to divert attention away from yuhaman35's argument? I'm not employed by IID. But I do have several friends that do or have worked there. IID has at least 1,000 employees with probably 5,000 extended family members, friends, and don't forget retires and their families and friends. So there are more than just IID employees out here that follow happenings at IID from a more invested and informed perspective. "
Yeah, sure.... wrote on Feb 18, 2008 4:47 PM:
" Okay, everyone raise their hand that thinks yuhaman35 doesn't work for the IID....yeah, thought so....I'm just wondering if he's doing it on district time.... "
yuhaman35 wrote on Feb 18, 2008 1:29 PM:
" Holtville1, I have no problem with how truck farms are managed. Truck farms should be managed like, well, truck farms. My point is that electric utilities that serve over 100K customers should be managed like an electric utility. Admittedly, the IID is currently undercollecting on the ECA charge based on what they are now paying for fuel and energy contracts. The number of customers has been growing adding additional demands to the IID ability to provide reliable energy. Cutting 25%, 200 jobs, from the IID electric department seems to me to move away from wanting to provide reliable service for thousands of us customers and more to satisfy the room full of people at board meetings wanting job cuts, lower rates, lower wages, requiring employees to use their personal vehicles to run errands, and the inability of the IID to negotiate competitive compensation packages that are required to attract qualified professional managers. There is nothing wrong with being efficient. And the qualities you mention about how a truck farm is managed apply can apply to any company. The consequences of failure differ greatly though. If IID can't deliver energy reliably, is there a truck farm ready to step in? "
holtville1 wrote on Feb 17, 2008 9:26 PM:
" yuhaman, You seem to have a real problem with the way 40-acre truck farms are run. Is it that they are efficient because they have to be? The way they watch every penny that comes in and goes out? The way they plan ahead? Maybe we don't want the IID to be thinking on such a small scale, but then we don't want anyone thinking they are working for a big government agency with money to burn either. And I challenge any of the IID employees here to tell me what would be so bad about running things more efficiently so our bills would be lower. Our comparitive rates are the lowest in the region so it's OK to let things go on as they are? "
No way wrote on Feb 17, 2008 5:28 PM:
" It's nice to know that some of the IID personnel can actually spell and put complete sentences together...as evidenced by their writing here. The fact of the matter is that IID is overstaffed and has bloated salaries at ALL levels. Bring their salaries down to the state average rather than comparing them with just the biggest agencies in the state. It's a joke the astronomical salaries that some these high school (or less) graduates make at "our" utility. "
yuhaman35 wrote on Feb 16, 2008 9:24 PM:
" Holtville1, so IID should require employees to provide their own vehicles to drive when conducting IID business? Regardless of the condition or appearance of the employee's vehicle? Or should IID specify that too? You mentioned insurance would not be a problem. Maybe you should run that one by the IID lawyers. They just might have a different opinion on that. Again, managing the IID like a 40 acre truck farm does not give me comfort that my lights and AC will turn on whenever I need them to. IID Board members need to start thinking beyond their next election. Stop pandering and start showing some vision. "
thegarz wrote on Feb 16, 2008 8:57 PM:
" Yeah, the IID CAN be run more efficiently--no one is disputing that. But to be fair, IID rates are MUCH LOWER than let's say CFE (Comision Federal de Electricidad) in Mexicali and SCE (Southern California Edison). Those two outfits are a MAJOR rip-off! I was going to move to Palm Desert a few years back until I found out SCE rates were 40-50% HIGHER THAN IID! La Quinta is right next door and serviced by IID....guess which city had NO rolling blackouts a few years ago? Yep, IID provided better rates and service. "
holtville1 wrote on Feb 16, 2008 8:51 PM:
" wriststrong, This goes back to the efficiency thing. It looks like the IID has more than enough vehicles, they just aren't allocated properly. In private industry, we use our own cars when we need to run an errand. Liability isn't an issue if you're on IID business and get in an accident. I doubt the lawyers will care much whose name is on the pink slip. It's payday for somebody. "
wriststrong wrote on Feb 15, 2008 2:08 PM:
" vzinternet, working here at the iid has given me some insight. I will agree on the "top level positions" part, but not the vehicles. Sometimes we have to wait to run a necessary errand because a co-worker is using the only available vehicle. "
holtville1 wrote on Feb 15, 2008 1:26 PM:
" Wow, with our rates already at supposed record lows I wonder how much cheaper they would get if the IID were run more efficiently. "
cv wrote on Feb 15, 2008 12:49 PM:
" I DARE, NO DOUBLE DARE... NA TRIPPLE DARE THE ivpress TO COMPARE RATES WITH OUR NEIGHBOORING UTILITY COMPANIES, INCLUDING C.F.E. AND WRITE THE RESULTS ON THE FRONT PAGE....
IF YOU SMART ENOUGH AND HAVE ENOUGH RESOURCES INCLUDE OTHER COST OF LIVING FACTORS IN THE EQUATION... "
yuhaman35 wrote on Feb 15, 2008 6:29 AM:
" Laying off 200 employees so that my electric company can be managed like some 40 acre truck farm (no offense intended)does not give me comfort. "
yuhaman35 wrote on Feb 15, 2008 6:25 AM:
" holtville1, I'm not employed by IID. But I do have several friends that do or have worked there. IID has at least 1,000 employees with probably 5,000 extended family members, friends, and don't forget retires and their families and friends. So there are more than just IID employees out here that follow happenings at IID from a more invested perspective. I apologize for inferring that you are on the dole. I was trying to address your suggestion that, because there are poor IID customers, those customers that aren't poor should somehow feel the poor customer's pain regarding high electric bills. My point was that IID rates are low. Bills may seem high because we use alot or because we don't have the money to afford the electricity we use. Sure there are inefficiencies in every business, including IID. The gas hedging losses aren't the first time IID has lost money on a business decision and it won't be the last. But I like paying low rates for electricity but I really like it even more when my AC and refrigerator and lights work when I need them to. "
me2 wrote on Feb 14, 2008 8:21 PM:
" holtville1, change will happen and if people become involved it is closer than you think. Unfortunately, no matter what there is always be unhappy individuals. When the IID started the power department in 1936, it was done for the public benefit. I would like to see them honor that vow again. "
me2 wrote on Feb 14, 2008 7:56 PM:
" homeboy, either too poor to move or too rich, because I don't see the millionaire ranchers going anywhere. "
holtville1 wrote on Feb 14, 2008 7:40 PM:
" yuhaman35, I work hard for my check. And it really burns my butt paying so much of it to the IID when I see the level of incompetence and amount of waste there. If you are an IID employee, do you deny that? "
yuhaman35 wrote on Feb 14, 2008 7:15 PM:
" Holtville1, no offense intended but the point, if you would check, is that rates, to my knowledge, have not gone up since August. I believe the IID Board dropped the ECA a cent. So if cinorea's average bill has gone up $684 a year and rates ahve not increased, he (or she) must be using more electricity. No offense, but IID rates are lower than SCE and SDG&E and are based on cost not the customer's ability to pay. And, no offense intended, but those of you with Imperial County Social Services or State welfare logos at the top of your paychecks need to be more considerate of those who are forced to transfer their hard earned wealth to you. You receive your benefits from the productive people of this county. Yes, we have high poverty level here but, and you can look this up, most ratepayers are not high poverty level. They, like most people, struggle to keep their bills down and to pay the ones they get. Keep that in mind tomorrow morning on your way to cash your check. "
homeboy wrote on Feb 14, 2008 5:16 PM:
" A wise old farmer once told me along time ago, "The only people who stay in Imperial Valley are the ones who are too broke to move" "
me2 wrote on Feb 14, 2008 10:14 AM:
" rvidrio-thank you for making the comparisons, hopefully this will give the readers some prespective.
holababy-I must admit that I never agree with any of your comments, but you are actually making sense now...thank you for your comments.
homeboy-what can I say...California is a tough state, especially for businesses. If you are not happy go live at Wenatchee, WA.
cinoreah-It doesn't matter where we work...some of us actually do some research before typing.
yuhaman-Thank you.
holtville1-The IID has assistance programs for low income households. Those who qualify get up to 30% bill reduction. Who do you think gets stuck with the unpaid balance? "
holtville1 wrote on Feb 14, 2008 9:33 AM:
" And those of you with IID logos at the top of your paychecks need to be more considerate of those who don't. You receive your salary and benefits from the poorest of the poor in this county. Yes, we have some big companies and some well-to-do residents. But most ratepayers are just average workers and many are unemployed or on Social Security. They really suffer to keep their bills down and struggle to pay the ones they get. Keep that in mind tomorrow morning on your way to work. "
holtville1 wrote on Feb 14, 2008 9:29 AM:
" yuhaman35, That comment about everyone paying the same rate so use less is offensive. I think the point there was that the rate shouldn't be so high. The real problem is that there are too many chiefs and not enough workers. The solution the IID chiefs come up with: lay off some of the workers. I remember seeing the IID working on a bridge on Thiesen Road north of Holtville several years ago. One guy down in the canal with a shovel, a half dozen up on the bank watching. Before they built the new apartments on the north end of town, IID had to move some poles. A couple of crews in big trucks pulled up across the street and waited. For what? I don't know. Either start managing and working efficiently or I want a refund. "
yuhaman35 wrote on Feb 13, 2008 8:24 PM:
" Cut the top positions and the strategic planners because they made the mistakes on the hedging? They are all gone already. Those spots still need to be replaced or should the workers manage and do the planning themselves? What this company needs is leadership from the Board not endless finger pointing. "
yuhaman35 wrote on Feb 13, 2008 8:15 PM:
" Everyone has the right to make a living, cinorea. Even IID employees. Working for the electric company doesn't take away any of their credibility. Your bill is based on how much you use. So use less. We all pay the same rate, we all use different amounts. You have control over how much electricity you use. Use less. "
holababy wrote on Feb 13, 2008 5:38 PM:
"
cinoreah ?
i liked it when the person said to you
"stop being such an ignorant! "
they hit the nail on the head.
i dont work for the IID, but i do admire some of the people that work there. "
holababy wrote on Feb 13, 2008 5:32 PM:
" homeboy. what does the price of gas in yuma got to do with anything ?
arizona does not have sale tax on gas. arizona does not have sale tax on federal gas excise taxes.
that adds about 24 cents per gallon to california gas.
arizona gas, if sold in california is a crime.
you thing the local supplier wants jail time to make you happy ?
"
cinoreah wrote on Feb 13, 2008 5:19 PM:
" Wow...some sure do seem to think they know what kind of house I live in and the age of my appliances. Well, just to clear that up: my house is 10 years old, AC 2 yrs old, fridge 2.5 yrs old, hot water heater 3 yrs old, washer and dryer 4 yrs old...and no old refrigerator hanging around the garage. Do I need to buy new appliances to satisfy those who ragged on my comment? Oh and its obvious some who posted work for the IID. "
homeboy wrote on Feb 13, 2008 5:12 PM:
" Residents of Southern California are being fleeced for energy such as power and gas PERIOD. I bought gas in yuma the other day for $2.60 a gallon. Power rates in Wenatchee Wa. are only 0.02999 PER KWH HOUR!!!
There are so many vacant forclosed houses in Calif. they can't count them all. Southern Calif. has priced it's self out of reason and people are finding cheaper places to live out of state. I don't think the IID is short on cash, but they're definetly SHORT ON RATEPAYERS...... "
holababy wrote on Feb 13, 2008 4:12 PM:
" the IID needs people that understand energy hedging. Purchasing power and locking in long term rates for future use is a common practice.
NOT covering the "risk" that future market price would be lower than the contracted price is bad "risk" management.
The IID is one of the best organizations to work for in the Valley.
They just need to hire some people that have been to"energy risk management" school.
"
rvidrio wrote on Feb 13, 2008 3:43 PM:
" As mentioned before, La Quinta residents are happy, quiet, regarding their electric bills.
They move to a city nearby to the west, north west, and their bills skyrocket, plus have no say to the powerful private investor-own-and-want-profit SCE. Their profit comes from each customer bill they charge.
The IID bill does not includes the profit for anyone.
We had a "lack of strategic planning" snuffo that is reported to be affecting the district's finances. Have anyone thought that these may be criminal charges against certain people? Cover-up by top authorities to protect "buddies"? Well, denounce, request an investigation from an external entity, FBI, state whatever, United Nations...
My point is, stop complaining and do something.
Go to Board Meetings, listen, question, demand.
How many readers are registered voters?
How many readers cast a vote for Board Members?
You have? great!
You did not vote while been able? Was "Star Dance", the game on TV or outside was too windy, too cold, too hot, too good, too bad that you did not vote?
Did you vote and saw other that can vote not going? Did you respected their "privacy" or exercise your freedom of speak?
And do not forget the media, they tend to exagerate many times. "
rvidrio wrote on Feb 13, 2008 3:31 PM:
" everyone, it is no secret that any organization, private or public, has innefficiencies. the larger the organization, the larger the problems. See the car industry for example.
we are all eager to complain, complain and point fingers. What about solution, alternatives, recommendations?
Despite how crazy they may sound, these ideas/suggestions may spark a real solution with someone and really improve things.
Let me remind everyone that IID belongs to all the ratepayers.
You can see the organization chart at the Board Room in El Centro where the directors meet.
Somehow, we all have a voice, something to say, something that may be clarified. Yes, one man working on a pole while two are on the ground may see expensive, inefficient. Has anyone asked if this is a federal regulation requirement?
Finally, remember that our high bills are not because the unit of electricity is very expensive, it is due to the amount of electricity we use.
Do the homework: IID rates are about 10 to 11 cents per kwh, SDGE rate are 15 cents at least, SCE (Palm Springs) charges from 17 cents (during everyone is sleeping) to 33 cents per kwh (around noon, when demand is high). Do the math "
ewurocks wrote on Feb 13, 2008 1:11 PM:
" I was going to write that me2, but you seem to have covered it. What cenoreah wrote p*ssed me off as well. While I am impressed that a senior citizen is able to use a computer to b*tch about power bills and dune buggies, I wish cinoreah would just read the paper copy and play bingo. Your bills are high because your house is probably old with outdated appliances. I know you remember when a candy bar cost a nickel, but a barrel of oil now costs $90+ and a gallon of gas is $3+. Not to mention the food inflation thanks to the government wanting to make corn into ethanol. It would be a tragedy if another utility took over IID service territory and everyone had to pay much higher rates. PG&E isn't a non-profit organization, they will be sure to collect enough money to make up for all their costs. "
me2 wrote on Feb 13, 2008 12:39 PM:
" cinoreah, The IID employees are rate payers too, what do you think they are CFE employees? Secondly, the linemen are not the problem, I would like to see you climb an energized pole. Linemen and troubleshooter are the one doing the hard work. Hanks mentioned that the IID is in this mess because of "lack of strategic planning", so I believe that the "strategic planners" should be hanged first for not doing their jobs. Where do you get off talking about the employee benefits! They pay medical bills and high deductibles just like anyone else so please, if you don't know don't write about it. There are many things that the IID is doing in order to produce more energy, a turbine generator is being built in Niland with excellent project management and under budget, how come the paper doesn't write about that. As an added note, genius, there is inflation and fuel costs are going up, that means the energy operating costs will go up as well. The IID has nothing to do with that part, stop being such an ignorant! "
vzinternet wrote on Feb 13, 2008 12:11 PM:
" Darn! Never mind cutting the linemen and actual workers. Cut the top level positions drawing the big salaries for lousing up things. The "Buck" should stop there!
It hurts when they lost $43 million dollars doesn't it? Might as well reduce the number of vehicles, trucks and cars they have setting around in their parking lots too. "
kayro14 wrote on Feb 13, 2008 6:41 AM:
" Cinoreah: You may want to have your house checked for ways to conserve energy. Single pane windows, old water heater, an old, extra refrigerator in your garage and energy inefficient appliances are possible culprits. $249 on level pay is double what I pay. Like you, I have two people living in my household with the winter thermostat at 66 and the summer at 78. If your bill has jumped that much, it can't be entirely due to rate increases. "
cinoreah wrote on Feb 13, 2008 12:40 AM:
" "I don't know how we're afraid to put rate increases on customers when our costs are going up," Sanchez said." Afraid? Geezus.
We are already paying for a 50 million screw-up by the district and now they want to raise our rates. Just how much more do the directors think customers can cough up? My level pay plan has jumped from what it was in Aug at $192 a month year 'round to currently $249 a month..an increase of $684 for one year. This for a household of two people with the thermostat set at 80 degrees.
I say lay off all those crews they have never needed...the 4 or 5 who stand around and watch 1 or 2 work and cut back on all their lofty benefits. They can start off by eliminating the birthday off with pay. Never heard of any place else where you get your birthday off with pay. (Do they still do that?) Make employees pay a higher preminum for health insurance like everybody else does. Eliminate the obscene severance pay packages when they fire somebody.
The district has been run so poorly for so many years, we are now going to pay mightily, "
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yuhaman35 wrote on Feb 18, 2008 9:22 PM: