EID board majority cut costs


Alan Day wrote strongly recently about his objections to an EID board action, accepting updates to EID’s agreement with its employees. What he didn’t say is that the updates decrease EID’s costs and did not involve merit raises. He argued that existence of merit raises was a reason to avoid the cost-cutting actions that were supported by EID’s staff (77 percent of employees) the four other directors. On this agenda item, Director Day voted against cutting costs.

The measure before the EID board was to adopt updates to the agreement with employees, already negotiated with employee representatives and approved by 77 percent of employees. These were mainly to implement provisions of 2012 Assembly Bill 340, the Public Employee Pension Reform Act in order to accelerate corresponding cost reductions. Those changes are independent of the reason Director Day cited for opposition.

Here’s a simplified summary of what the measure adopted by the board actually did: (1) Reduce future pension liability by shifting retirement age from 55 to 62; (2) Accelerate adoption of a PEPRA year-2018 standard for 50/50 pension cost sharing between employees and public agencies; (3) Change employee and retiree cost sharing of health benefits, to reduce employer-paid costs; (4) replace a fixed 1 percent annual increase with a variable COLA, limited to 0 percent to 2 percent; (5) Extend theagreement between EID and its employees to 2016. The prior agreement was due to expire at the end of this year.

EID staff estimated this set of changes will save $325,000 in 2013, then $700,000 in each following year through 2016. Director Day said his own estimate was “only” $274,000 per year in cost reductions. Either way, it’s a substantial cost cut.

Director Day’s complaint is merit raises. If he’d  like to discuss merit raise policy, let’s have that discussion, but it wasn’t the board’s business on Feb. 25. Let’s be perfectly clear about that case: It was EID staff and the four other directors who planned, negotiated and adopted a very substantial cost cut. They acted in our best interests Alan Day opposed our interests by voting to keep costs higher.

Paul Raveling
El Dorado Hills

This story falls on page "5"
Posted by on Mar 24 2013.
Last Login:
Filed under Letters to the Editor. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

7 Comments for “EID board majority cut costs”

DAILYREPUBLIC.com does not necessarily condone the comments here, nor does it review every post. Read our full policy.

  1. Paul Raveling mindlessly parrots all EID’s claims of cost savings (which now cumulatively exceed $25 million since 2009 according to GM Jim Abercrombie’s imaginative self- accounting). Yet Raveling somehow doesn’t believe the reality of his EID water bills, rates for which have surged 18%, 15%, 15% and 11% in 2010, 2011, 2012 and 2013. And with next year’s already-Board approved 11% rate hike Raveling undoubtedly again will tell us how EID saved another chunk of money. In November, two EID Director incumbents (along with Raveling) best get ready for a rude awakening as to how EID ratepayer voters are keeping score.

  2. Baloney.

    My response was slow because I check facts instead of substituting fantasies. I’ll back up some of these details within a few days by posting a few new graphs on sierrafoot.org, plus the Excel spreadsheets summarizing my utility bills. EID is my cheapest utility, accounting for about 19% of my total utility cost. Water, Fixeid’s current favorite for cherry-picking rates, is the cheapest component — about 8% of my utility costs.

    Mr. Prada especially should recognize that I don’t obsess over EID as he seems to. Expect whatever I write to be slow to appear but we’ll researched

  3. What is this guy Raveling babbling about? Who cares what his utility bills are?

  4. P.S. about Greg Prada’s comment:

    I posted my utility bill data because it IS reality: This is what my household actually paid. Look to Cameron Park if you’d like to see fabrications.

  5. Fly on the Wall

    I guess the EID board is blissfully unaware of how angry – and broke – ratepayers are. When bills have doubled in the last three years and more rate increases are on their way, it’s difficult to believe that the board has done ratepayers any favors. Perhaps they will wake up when the abused ratepayers vote in November to replace the two incumbents.

  6. Fly on the Wall

    PS No wonder EID has PR people on staff.
    PSS The PR people are doing a horrible job.
    PPSS The ratepayers are paying for the PR people, who are doing a horrible job, to tell the ratepayers what a great job the EID is doing.
    PPSSS I vote to relieve the PR people of their responsibilities and save the ratepayers some money. Now THAT would be some good PR.

Comments are closed

Recently Commented

  • Diane Orciuoli: Well written Ann, Thank you for speaking up! I agree with you 100%.
  • James Scott: This article was the first I’d heard about this and it boggled my mind that there was actually a...
  • Veronica Spires: We love the Blue Oak Montessori program! I am a teacher by profession (not at Blue Oak since I have...
  • Ian Wyatt: We met with the David and Jackie and we are informed that Blue Oak is not over-crowded and that the...
  • yvonne morris: I’ve seen many local kids using this trail for their bikes. They’ve always been nice and...