Letters To The Editor

WHO’S IN THE POOL?

Editor,

Thursday, March 14, at 1pm, Mendocino County Treasurer, Shari Schapmire, convened a “Roundtable Discussion” of the Mendocino County Treasury Pool.

We met in Conference C at the County Administration Center on Low Gap Road.

The agenda included the following items:

• Introduction of New Investment Adviser — Chandler Asset Management

• Update on the Economy and Financial Markets

• Chandler's Investment Strategy

• County Treasurer's Investment Policy

• Interest Rate Apportionment Rates

• Costs Associated with the Treasury Pool Banking Services

Additional Topics of Interest

Four of the five members of the Mendocino County Board of Supervisors (BOS) were in attendance: Dan Hamburg, John McCowen, John Pinches, and Dan Gjerde. Supervisor Brown was absent.

This was a Brown Act meeting that was properly was noticed. Also attending the meeting were 40-50 members of the public. The meeting was also videotaped for community television.

My takeaways include the following:

• Chandler is doing a good job for a reasonable fee. Chandler earned a 61-basis point return for last quarter on the consolidated portfolio. On a risk-adjusted basis, this is better than our previous money manager (Abalone Cove Advisers). Meanwhile, Chandler only charges the county about $16,200 in annualized fees, which includes Bloomberg and most other services.

• Chandler also diversified the holdings in the treasury pool from approximately 20 holdings to about 80 holdings. Our holdings were expanded to include U.S. Treasury securities and federal agency securities. In diversifying the holdings, the average size per holding went from approximately $5 million to $1-2 million per holding.

• The diversification has resulted in a much more level “interest rate apportionment rate.” More level interest, and less volatility, is a good thing.

• Fitch, the bond rating company, had previously noted that Mendocino County had some performance issues with the treasury pool, hence the switch to Chandler. The County Treasurer's Investment Policy puts its highest priorities as “safety, liquidity, and yield.”

• Chandler staggers the maturities of our county's holdings in a “Ladder” fashion. The average duration is 0.86 years. The average coupon is 0.74%. The Average Purchase Yield to Maturity (YTM) is 0.46 %. The average Market YTM is 0.35%. The Average Final Maturity is 1.0 year. The Average Life is 0.90 years.

The Average S&P/Moody Rating is AA/Aa2. Approximately 10.7 % of the portfolio is only rated A by S&P, and 42.9% of the portfolio is Unrated.

As of 1/13/13, the market value of the treasury pool was $212,906,082, which includes accrued interest of $367,075.

The top issuers in the Treasury pool are: Local Agency Investment Fund (24.7%), Custodial Checking Account (10.25), Government of the United States of America (9.2%), Federal Home Loan Bank (7.0%), Federal National Mortgage Association (6.5%), Federal Home Loan Mortgage Corp. (5.7%), Federal Farm Credit Bank (5.2%), and Bank of Montreal Chicago (4.9%).

Chandler's investment advisory fees represents only a small portion of the total costs for administering the treasury pool. Chandler's annualized fees of $16,200 is dwarfed by $246,000 in annual costs that the County Treasurer's Office charges off to the treasury pool in 2012-2013. Of the $246,000 amount, 65% of the County Treasurer's salary and benefits of $155,200 was charged off to the treasury pool.

Approximately 43.3% off the total staff time at the Treasury Office was spent on treasury pool business.

Other costs included “variable costs” for Bank of America — about $10,026 per quarter — and lesser dollar amounts for Mellon Bank and Savings Bank of Mendocino, for custody and clearing services. After an RFP conducted last year, Bank of America was retained.Total pool costs are about 0.00165 per $100.The County Treasurer emphatically stated that “socially responsibility” is not a factor in making treasury pool investments. Her only criteria were “safety, liquidity, and yield.”

Treasury pool holdings include; 2.33 % of the portfolio in Barclays Bank (responsible for the LIBOR rate manipulation scandal); 0.70 % of the portfolio in Wells Fargo Bank (responsible for “robo foreclosures"); 0.60% of the portfolio in General Electric (a major defense contractor); and 0.47 5 of the portfolio in Wal-Mart Stores (an anti-union shop and the defendant in a gender discrimination class action lawsuit filed in federal court by many of the women who work for Wal-Mart). Members of the public were outraged that the treasury pool included these controversial holdings.

Members of the public respectfully suggested to the County Treasurer that a county bank, if approved by the BOS, would be a good way to make socially responsible investments in the treasury pool. A county bank could also earn the administrative fees of approximately a quarter million dollars that currently charged off to the County Treasurer's Office. This could help fund the operation of a county bank.

Public banking is already working in the United States (the State of North Dakota) , and 20 states are currently considering some form of public banking legislation. A county-owned, county-operated bank would be a public bank.

The Public banking Conference, “Funding The New Economy,” will take place on June 2-4, in San Rafael, at Dominican University. The event is hosted by the Public Banking Institute, the Pennsylvania Public Bank Project, New Montana, Dominican University's Green MBA, the Vermont Partnership Bank, and the Washington Investment Trust.

Respectfully submitted,

John Sakowicz

Ukiah

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WHAT A GAS!

It is of little solace to me that a one-year subscription to the AVA now costs the same as a tank of gas at the station. Alas! The AVA is clearly of a higher quality than gasoline.

Luke Hiken

Berkeley

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KEEP THE CO-OP CO-OP

Letters to the other,

It's election time at the Co-op. Once again I am concerned about the proliferation of GMOs at the Co-op. For example, even the textured soy protein isn't organic (no green label) as up to 90% of soy isn't organic, chances are it probably isn't. You would be hard pressed to find, for example, vitamin E that doesn't have nonorganic soy in it. (Now has Sun-E 400 non-GMO soy free).

Our election literature talks about new bylaws needed to raise fair share payments “from time to time,” to determine patronage payments to owners based on the needs of the Co-op, one of which is possibly a new store. So I think the perennial proliferation of GMOs issue must be resolved before that event.

Are we going to move all the GMOs with us to a new store? Do we need a new store if we remove GMOs?

I was told when I first raised this issue about a decade ago (along with others) by one board member that we needed GMOs, otherwise our shelves would be empty. By a staff member that we needed to compete with the big supermarkets. I felt disoriented in an alternate universe — the corporate one. (The Co-op is a for-profit.) Serving on the survey committee I was told asking the members what to do was unprofessional. We couldn't ask members directly if they wanted to label GMOs, refuse to have GMOs in the store or — other. What was asked was: Was there anything the Co-op shouldn't sell? In every category of customer the answer was GMOs, and most were in the 90% bracket. There was I think an 88% in one category.

Later, I was told a one time [illegible] was sufficient. That we couldn't afford to hire someone to consistently monitor and check inventory. (I believe we had General Mills at the time in the back.)

Years later, that the distribution centers make it impossible to obtain information necessary to police our inventory.

I am also concerned about the election process itself this time. (There was a bylaw change that took election standards out and replaced it with a board of directors construct. (Board members change every year.)

So this election a friend called to say the ballot was generic and had no identifiable numbers or way to track members' votes. (Anonymously or otherwise.) He took his ballot to the parking lot to vote and said he could have made as many copies as he wanted and discreetly deposite them over the course of this election.

I personally don't have time to do more. I am even conflicted about spending this time to write this letter. I have a gravely sick dog, a hole in my mouth from a pulled tooth, moving to pack for, paperwork everywhere, ditto housework, etc. etc. etc.

I hope the members of the Co-op care enough to care. And I do want to say I love the co-op side of the Co-op. All the wonderful workers who have helped me so much over the years at the Co-op.

Being number 124, I remember the beginnings of our Co-op — like a family. The workers maintain that wonderful feeling. Thank you workers.

Susan Wertheimer

Ukiah

PS. Elections are through the month of March.

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HMO OR SFO?

Editor,

Some Frisco chums tell me that the attempt to change SFO to HMO in honor of Harvey Milk was the biggest trial balloon since the Hindenburg. The public would think it was a medical clinic.

Now the changelings are going after Frisco's premier cultural event — Bay To Breakers — demanding that it be renamed the “Harvey Milk Run.”

On a serious note, while it's sad that Boontling is near extinction, we can be comforted to know that it will be replaced by “Cybling,” the esoteric lingo of techie digerati.

Spare change, anyone?

Bottoms up!

Joe Don Mooney

Hopland

PS. Oliver Stone's latest flick, “Savages” (2012) is a nitty-gritty inside view of the ultra-vi drug scene and the mellow marijuana industry, with vague references to drug cartel ranches in Humboldt County. Filmed on location primarily in Southern California and Mexico, it features an all-star cast of young actors and some old pros including Selma Hayek as a drug queenpin and John Travolta as a corrupt DEA agent and the great actor, Benecio Del Toro, as a drug cartel enforcer. Recommended viewing for all Emerald Pentanglers.

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THE LAST ONE

Ye Ed,

Egad, the dread red stamp time and again. Oh well, it's legit: the only way to stay sane. Ergo, find check enclosed.

I agree with the expressions of other readers regarding an online version only. Faugh! Well, I'm not online and have no plans to be so that would be farewell and talk about Faugh!

A rate increase? What the hell? I've got a lot less money than most, but then rates increase anyway and I really like to read the paper and this is the only one left. Tell you this, daddy-o, you raise the rates and it won't be farewell. The very best to all.

Carol Pankovits

Fort Bragg

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HOLD ON TO THE PAPER

Hello AVA crew-

Please renew my subscription for another year and add my voice to the chorus to keep the print edition. I tried the online subscription at first (okay, I'm cheap), but I prefer holding the paper in my hands.

Thanks,

Tim Cooper

Sevastopol

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OFFENSIVE POSTERS

Dear Editor,

I agree with Todd Walton's letter. Let's be kind to those who are having a hard time. Is it that painful to give a homeless person some change or a dollar or two? I find the posters offensive along with the people who think cutting down the berry bushes is a good thing to do.

Just saying,

Diane Woertnik

Willits

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A DRONE DARK SKY

Dear Editor,

Did you know that drones under 55 pounds are to be authorized this year — and without Congressional debate? The Senate Armed Services Committee demanded that drone deployment be expedited and given the freedom to operate freely and routinely in our airspace. The goal is to to have 30,000 zipping through airspace by 2020.

The Federal Aeronautics Administration Modernization Act signed by President Obama 2/14/12 allows Unmanned Aeronautic Vehicles (AUV) to enter airspace by 9/15/2015. Prior to this law the FAA had to approve any license cautiously. Pilots and Agency officials worry that those unregulated pilotless gnats won’t be seen and can't be avoided by planes loaded with passengers.

Supporters are composed of 60 members of the Drone Caucus led by Rep.Howard McKeon of Santa Clara, California who is also chair of the Senate Armed Services Com. Opponents are Representative Ed Markey (Massachusetts), Senator Rand Paul and Fox commentator Charles Krauthammer who said "I don't want restrictions; I want a ban on Drones." They violate the Fourth Amendment. Protest groups could be labeled terrorists and be targeted for killing with no due process of law. If this is untennable to you, do write or call your Congress persons.

Act now,

Agnes Woolsey

Mendocino

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HOSPITAL HAZARDS

Editor,

I’m mad as hell & not going to take it anymore.

Mendocino Coast District Hospital is a dangerous place to be a patient: My elderly neighbor recently had surgery there; he was over-medicated with morphine during surgery. Later that day he was again over-medicated by nurses, who later claimed they were just following instructions. When visiting my friend, he was in a psychotic episode thanks to these morphine overdoses. During my visit, the nursing staff was and angry with his behavior. Most unfortunately this same person had another surgery two weeks later, with the same reaction to morphine. The anesthesiologist was Dr. John Kermen, now Chief of Staff at MCDH! Luckily my friend was able to have these disasters documented by two physicians and other staff members (not attending nurses).

Another of my neighbors, an elderly fellow who is delaying much needed surgery is very afraid to go to MCDH. I understand why, based on several other former patients telling me about similar instances.

My experience in the ER: a nurse taking blood without wearing gloves — my blood got on her hand. Also, dirty, used bandages were on the ER floor and a nearby trash can overflowed. Good sanitary conditions are woefully lacking.

My trust with MCDH is now nonexistent. Some physicians in our community are the very best: how they deliver their excellent services in such a dysfunctional environment speaks to their Hippocratic Oath and professionalism, not to our local hospital.

Name Withheld

Caspar

(I'm concerned to use my real name. I may have to be a patient there again and don't want any repercussions from the staff. I experienced all the above and dread any repeats. Thanks.)

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THE GOLDEN SKILLET AWARD

Editor,

We've been enjoying delicious meals at “The Restaurant” on Main Street in Fort Bragg over the last 35 years; we decided that it was about time the proprietors Jim & Susan Larson received an award. So here's a picture of the one we made for them, taken just before we presented it recently. The wood back is a piece from an ancient sinker log pulled out of Big River a few years ago which Elmer hoarded for a special occasion. I found the miniature bronze skillet at The Ark and bought it not knowing if it would ever be useful for anything.

Betty Lou & Elmer Whaley

Fort Bragg

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NEED FOR CASH

Editor,

As you will see from the schedule for Hwy 128 and Hwy 253, both roads will be closed partially or wholly in some areas during some times the first two weeks of April. Helicopters filming with low overflights along some road corridors will take place. Helicopters may fly as low as 500 feet.

On April 2nd, Hwy. 128 will be subject to intermittent closure with up to 20 minute delays, around the Flynn Creek Rd. intersection, and from Handley Cellars to Greenwood Rd, then from east of Boonville to near the CDF fire station. On April 11th and 12th there will be an extended traffic control from the Coast to the Demonstration Forest/Masonite Road Area, with a pilot car. The area around the Hwy 128 intersection with Flynn Creek Rd, for the first mile of Flynn Creek Rd. will be subject to temporary closure from 5:00 am to 9:00 pm. Traffic via Masonite Road through Rancho Navarro to Comptche may be possible.

Hwy 253 will be closed Saturday and Sunday, April 6th and 7th from 6am to 3pm. Through traffic is directed to find an alternate route to Hwy 101. On April 9 — April 10 Hwy 253 will be subject to intermittent closures with traffic control and 20 minute delays.

Film location managers and a CalTrans representative spoke Wednesday to a group of about 60 residents at the fairgrounds to answer questions (which were many: why was there no community input solicited or allowed prior to decision; is this a done deal?; what does the Anderson Valley get out of this disruption; what do individuals whose lives are being disrupted get out of it, who selected the much travelled and critical life-line roads, etc.).

The answers are, this is a done deal. While final permits have not been issued from all the various permitting agencies (pending the just-decided movie makers final schedule) they are either approved (County of Mendocino, FAA, State Parks) or approved in concept. The CHP whose presence will be required will provide off-duty officers in large number at no cost to the Agency, but does not have to issue permits. That is done as a part of the CalTrans permitting.

With the exception of the County of Mendocino permit, all the other are issued by out of area Agencies, the main one out of CalTrans district seven (LA) through a special office for film permits. The County of Mendocino “permit” was not issued as such. Supervisors abdicated responsibility to the Coastal Commission (part of the filming will be done on the Coast near Point Arena).

Our Supervisor Dan Hamburg said any lack of local contact should be blamed on him, soliciting Mendocino filming was a County policy and an important revenue generator for the County, if residents did not like it they should tell the Board.

Although county roads will be closed where they intersect highways, and county Department of Transportation permits have been issued, no public notice was available by yesterday.

What do we get out of it? So far it appears that the selection of the Fairgrounds to be used for a month as a base for filming operations may result in payment in the range of $50,000-$60,000, possibly enough to keep the near bankrupt facility afloat for one more year. This contract is not yet final.

Otherwise there was lots of talk from the Mendocino County film commissioner (not a county employee, works under the aegis of the Coast Chamber of Commerce) about how the 150 people associated with the filming will be spending big bucks in the local economy. And there were two anxious speakers who wanted to know how to apply for work as extras.

Mark your calendars, or leave the area.

Cheers,

Gene Herr

Philo

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FIASCO UPON FIASCO

Editor,

Everything good or bad is caused by government. They make the laws and everyone has to work within those laws. We hear about China’s corruption. Every country has corruption, but China must be small, as no country is a leader when corruption runs wild. It’s not only that, China and other Asian nations have cheap labor which they have. But it’s efficient labor, people who are willing to work. They are able to manufacture the goods and have the ability to assemble and deliver huge amounts safely on time and inexpensively.

This was us 30 years ago. All these laws, taxes, fees and regulations are strangling us and we are almost powerless to keep them from growing, let alone stopping them. The two elements, competition and accountability, that are in the private sector, are being torn apart by campaign contributions. Corporations, unions, individuals, pension funds, etc. all want something for the money they contribute.

My solution as I continually say, is $50 only from any person or any organization of any kind.

One of the consequences of what’s happen and a prime example is the new approach to the Bay Bridge which is now in its eleventh year of construction and costing by the last estimate $6 billion. The whole bridge was built in 1933 to 1936 for some $77 million, and ahead of time. $5 then is worth about $100 in today’s dollars. So that $77 million figured in today’s cost would be a little over $1 billion. One third of that Bridge is costing us four times as much.

On top of this fiasco is that we are supposed to have better everything, including knowledge. Regulations upon regulations, rules upon rules. No one can be fired, make the job last as long as possible so it costs billions more than it should. Think of many miles of broken road can be repaired with that money. The fact is everybody suffers.

Then the state Parks fiasco of hiding some $50 million. There is an investigation after so much complaint from the people who raised money to save the Parks. The fact is that the investigation will go on and on until it is just plain forgotten about and no one will be held accountable.

It’s not only the Bay Bridge or the Parks, but everything the government gets involved in is inefficient and costs much more than it should. On top of it all, they are going to have a celebration when the bridge is open. It should be a wake.

Emil Rossi

Boonville

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NEED FOR DEMOCRACY

Editor,

At the “Need For Speed” information meeting last Wednesday afternoon I provided the only emotional outburst. That isn't to say that all others were without passion. Dan Hamburg, our 5th District Supervisor gave vigorous and emotional, sometimes heated, defense of the Board’s approval of the movie without local citizen input based on what he called “County Policy.” Bottom line for him and many others in attendance was the dollars we will get out of allowing the movie to be made in Mendocino County.

I always enjoy the excitement and entertainment when a filmmaker comes to town. The break in routine, the new faces and the anticipation of recognizing some of the places and maybe the people in the finished product is great. It was fun when they made Pig Hunt even though it turned out to have “absolutely no redeeming value.”

But being valueless is different from being harmful. Social Science has shown that we human beans are influenced by and imitative of what we see on the big screen. And no one who has lived the 70 years or so that I have can deny that the shoot-em-up, blow-em-up action that we see on the screen both big and small is also playing itself out in real life. I suspect there is a connection.

Having Googled the “Need For Speed” video game the movie is based on prior to the meeting, I was aware of the fact that it is all about driving as fast as you can on public streets and highways and when the inevitable cops show up there is a grand chase. Criminy, we just had two police pursuits locally in the past month, one of which caused great bodily harm to the pursuing officer.

It was frustration at the disconnect most people have from the power of influence that movies exert and their seeming need to reduce propriety to a monetary sum that caused me to blurt out “What is the price of a human life?” in response to the suggestion that the Fair might receive $40,000 out of the deal. We live in a world of crumbling social order. Money has become the bottom line for all our decisions, not morality or future consequences. We are living with disasters bought and paid for all around.

For sure there are people who think that global warming is a myth so one could surmise that there are those who don't see any connection between the violence in video games and movies and the real life stuff that is happening on our streets, in our schools and in our homes across America. In fact, it would seem that a majority of those in attendance at the meeting were of the disconnect persuasion.

Afterwards, outside Dan Hamburg told me, “David, If we had held a meeting before issuing the permits you guys would have caused the filmmakers to go somewhere else and then we wouldn't have the movie made here.”

So much for democracy.

David Severn

Philo

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AVHA SUPPORT

Dear Editor,

On behalf of Anderson Valley Housing Association (AVHA) I want to express our gratitude to the generous community members who participated in installing a landscape improvement along the frontage of our Ray’s Road Farm Labor Camp at 18150 Ray’s Road, Philo.

I received a phone call last month from Diane Paget letting me know that Ken Montgomery, owner of the Anderson Valley Nursery, was downsizing his business and giving away some plants to local community organizations. His goal was to benefit the community.

Diane also contacted Linda MacElwee, Navarro Watershed Coordinator at Mendocino County Resource Conservation District, who volunteered to help me select appropriate drought tolerant plants.  Next, I contacted Nathan Miller, Goldeneye Winery’s Manager of Viticulture, Anderson Valley,  who had offered a couple of years ago to provide labor for AVHA if we ever had a small project we needed help with. Nathan generously arranged for Remington Martin, Juan Ramon Perez, Arturo Ortega and Oscar Hernandez to prepare the soil for planting, and on Monday March 18th the donated plants were artfully installed at Ray’s Road by Linda and Remington.

I want to say how good it feels to have this kind of broad community support! Thank you Diane, Ken, Linda, Nathan, Remington, Juan, Arturo and Oscar.

AVHA is a 501(c) non-profit organization providing affordable housing in Anderson Valley. Visit our new web site at www.andersonvalleyhousing.org or call our office at 895-3525 for more information.

Sincerely,

Sheila Leighton

Administrative Manager, AVHA