theSheetNews.com

Will Mammoth businesses pledge air service fraternity?

Mammoth Lakes Tourism Director John Urdi updated the Mammoth Lakes Airport Commission on Tuesday regarding the state of air service. Still looking for ways to cover the $150,000 air service subsidy he maintains is a significant drain on MLT’s marketing ability, Urdi outlined some new ideas for revenue generation, including a possible “Tourism” Business Improvement District.

One of three new ideas is setting up a “pledge” program, not unlike the subsidy guarantees approved by Mono County and others. Essentially, businesses could “pledge” various amounts of support, and if air service covers its obligations, the pledge would be rolled over into next season’s guarantees.

A variation on that is a “pledge/benefit” program, which would be the same, but come with tickets, passes or other perks that could be used to attract customers. That, however, would come with more administration to facilitate the benefits part.

The third concept, a tourism-skewed BID, would be enacted by a simple majority of businesses that would make up a proposed BID, including lodging establishments, restaurants and tourism-related segments of the retail community. The “TBID” would likely seek to implement a 1% surcharge rate, amounting to about $1 on every $100. Urdi acknowledged the challenge is getting the lodging partners to add the surcharge to what he said are significant amounts of Transient Occupancy Tax percentages they already pay.

Also talked about in more detail is the idea of expanding parts of the BID outside Mammoth’s town limits. “We are thinking about going countywide with at least lodging,” Urdi suggested. He pitched a sliding scale of percentages, in which Mammoth would be at 1%, but outlying areas would be in for less and less the further away they are from town. Walker and Coleville, for example, would drop to about .25%. Any increase in the percentage would mean the BID would have to be reissued in whole, and Urdi is sticking with 1%, which he thinks should suffice for a very long time.

“We would need the blessing of the Mono County Board of Supervisors,” he added. Any proposed form of BID, however, might need more than that. With the 2010 passage of Prop 26, if the surcharge is considered a “tax,” “fee” or other sort of levy, it could require 2/3 of Mono voters approval. Under the state’s previous rules, many fees, levies, charges and tax revenue allocations could be enacted by a simple majority vote.

Prop 26 was passed to prevent higher state and local taxes from being labeled as “fees” so they could be passed with a simple majority instead of the two-thirds required by law. In some cases it would also prevent local taxes from being enacted without a public vote.

Urdi said the BID Steering Committee, which is currently being organized is probably going to be fairly large and inclusive. “We want 85% buy in, not just 50% plus one,” he said. Urdi expects talks will start in November, but nothing to be brought forward for implementation before March 2013. Mammoth Mountain Ski Area is expected to be represented on the Steering Committee, and a force in whether the BID goes forward, Urdi said beyond that it wouldn’t have any bigger seat at the table than anyone else. Can the Town raid the BID funds? Urdi says no, since the BID would be administered through the Eastern Sierra Air Alliance, and wouldn’t be part of a line item in the Town’s budget.

“The Digital 395 is the single most important thing done in this county in several decades,” stated Sierra Business Council President Steve Frisch as he presented the findings from SBC’s recent publication “Eastern Sierra Innovation and Prosperity: An Industry Cluster Approach to Economic Sustainability in California’s Inyo and Mono Counties” to the Mono County Board of Supervisors.

Editor’s note: Judging by the report’s title, we hope Frisch gets paid by the word 

While the road out of the recession is still looking slow and painful, according to Frisch, the time to plan for economic development his now. The implementation of D395 should put Inyo and Mono counties in a good position when the economy returns as long as the County has its ducks in a row when it comes to items such as agreements with last mile providers.

“Customer decisions are being driven by online research,” Frisch said of the benefit of better online accessibility in the Eastern Sierra. “People will research items online and then if it’s found locally they will purchase locally.”

In other words, businesses should study online trends to find out what to carry in their stores.

Frisch also pointed out the benefit of social media to create a direct relationship with customers. By interacting with customers through social media, as well as studying what visitors to your website are looking at, businesses can drive people to the specific assets they would be interested in.

Frisch said he also found that there was a high level of discontent with customer service levels in the area.

“With high-speed internet comes access to online training tools,” he pointed out.

Additionally, D395 is expected to open the door to allow more internet-based businesses to come to the area.

Frisch warned, however, that the County needs to have its zoning ordinances and policies in place for whatever strategies it plans to pursue, which means that if it wants D395 to be a useful tool, it needs to nail down its expectations for last mile providers completing the D395 infrastructure.

Giving the last mile providers details on exactly what is expected in the connection process will help move the D395 implementation along and make the best use of D395.

D395 Project Manager Nate Greenberg is currently working on getting these expectations nailed down, so that when the time comes Mono County can provide the best service possible to the largest number of constituents.

“The providers are not clear on the County’s intentions,” Greenberg explained of the situation at this time.

The providers are those companies that will need to make the connection between the D395 backbone to the customer’s home. As Greenberg described it, they are “like the off-ramp from the freeway.”

What the County needs to develop in the near future is a common operating picture for development, implementation, and management of broadband; consistent set of standards that can be applied to broadband, and an agreed upon set of long-term goals with short-term process to achieve them.

Providers may need some incentive to connect underserved communities such as Twin Lakes, in addition to the well-served and high valued communities such as Mammoth.

One bargaining chip that Greenberg believes the Board should leave on the table is the possibility to connect via overhead cable versus underground.

“Requiring some communities to go underground would take them off the list [of service],” Greenberg explained. “It’s an issue of cost versus the value of the community being served for the last mile providers.”

In an area such as Mammoth where the provider can expect to have many customers, the costs of the installation would be returned quickly, whereas other more remote communities would cost a lot to connect and may not see a return on investment for some time.

The cost of overhead cables is much lower than underground and that process could utilize existing utility poles.

The Board of Supervisors, however, would still like to see the priority placed on underground cables to preserve the scenic qualities of the county.

“Applicants should be asked to justify why they would need to go overhead or use wire instead of fiber optic,” said Supervisor Hap Hazard. “We can’t let providers come in and cherry pick an area. They have to help the entire county.”

Business Improvement District to fund air service still being mulled

The concept of creating a Business Improvement District to help sustain air service subsidies isn’t a new one. This paper reported on the idea when Mammoth’s Airport Commission previously batted it around in December 2011. “ESAA [Eastern Sierra Air Alliance] hopes to bring the local business and homeowner community into the air subsidy mix. It will ask the community to support air service along with Mammoth Mountain [Ski Area], [Town of Mammoth Lakes] and Mono County. The idea has been thrown around in the past but has never been organized,” we wrote.

Given the Town’s rock-and-a-hard place financial situation, Mammoth Lakes Tourism Director John Urdi has revived the idea, though it’s still just an idea at this point. If a BID is ever formed, it would encompass a defined section of the town’s lodging and businesses community, adding a surcharge (i.e. 0.5% or some other amount) on a variety of transactions, including food and retail, that would be put toward air service, and ideally end Urdi’s need to scrounge for subsidy funding from a cash-strapped Town and a tight-fisted Mono County.

After weeks of lobbying for commitments, he was happy to get $85,000 of a $100,000 ask from the county’s Board of Supervisors, but is admittedly exhausted at the energy and time poured into the effort. “After it was over, I thought, ‘I really hope I never have to go through that again,” he recollected.

Don’t look for a charge of that kind appearing on receipts anytime soon, though. At the moment, Urdi said MLT’s legal representation has sent a draft proposal to the MLT Board of Directors for input and comments. One topic is whether a BID should have a steering committee formed to help organize it, one that would include representation from MMSA, and the lodging and business communities, which would be directly affected by implementation of a BID.

A clear BID benefit is what could be a sustained commitment to air service, derived from the roughly $1.2 million the BID might be capable of generating annually. Any remainder would likely be applied to marketing, though it might also be put aside for “rainy day” applications in the case of low snow years or other economic slow times. “We need sustainability, but also consistency in the funding structure, which we’ve never really had when it comes to air service,” Urdi pointed out.

On the other hand, what if any impact it would have on businesses is also a consideration. Creating a BID takes a simple majority of businesses that collectively generate at least 50 plus one percent of the community’s revenue. Obnviously, the bigger the businesses on board, the faster one gets to that figure. Once enough support has been mustered to create one, however, typically BIDs do not afford dissenting businesses a way to opt out. Any surcharge adopted would be mandatory across the board within the BID’s borders.

Currently, Urdi said there is no fixed surcharge rate and no particular delineation of boundaries, or even what types of businesses would be involved. “Our take on it right now is, ‘Don’t speculate on what it’s going to look like until we know what it’s going to look like,’” he advised the public. “It’s still in discovery mode, and there are lots of questions, lots of ideas to go through, including many we haven’t even though of yet.” He stressed that the business community and related stakeholder also haven’t yet had their say.

Mammoth Lakes Chamber of Commerce President Brent Truax said he thinks the business community would be “cautions when it comes to looking at any type of BID proposal.” Truax added that a lot depends on the mediation [and MLLA settlement agreement] and how the result will play into a BID and impact the business community.

“Parts of the business community already contribute a lot of tax revenue, and if we are to consider a BID, we would want to make sure it’s equitable for everyone,” he said, pointing out that Mammoth is already one of the heaviest taxed municipalties in the state. Truax also expressed concerns as to how BID surcharges might affect visitors, and whether it would be the best idea to use a BID to make up for revenue that could be found elsewhere.

Urdi is expected to mention the BID during a presentation to the Airport Commission on Sept. 25, though he’s uncertain whether or not he’ll have new or updated information.

Rudder won’t bid
By Lunch 

In response to the story on page six regarding a proposed Business Improvement District (BID) to help subsidize commercial air service, I called Mall magnate Paul Rudder and asked him what he thought about the idea.

“That’s a terrific idea, Ted,” he said. “I’m sure the entire local business community will be very supportive.”

There was a pause on the line. I know Paul well enough so as to listen for the other shoe.

Drop.

I paraphrase the following, because Paul got a little amped up and started speaking more quickly. It went something like this. Ted, who in their right mind in this town would vote to tax themselves again, knowing that there is absolutely no guarantee, and in fact ample case history to suggest the money won’t be spent on what the Town promises it’s supposed to be used for. Any further tax increase proposed by this town is D.O.A.

A business owner along Old Mammoth Road who wished not to be identified said, and again I paraphrase: Why would I be in favor of taxing myself to support air service when 90% of that business will go to the Mountain and the Village? I’d rather spend my money trying to animate Old Mammoth Road … the ski and snowboard industry has been contracting for the past decade. One of the biggest ski and snowboard markets around is Southern California. Let’s allocate our resources marketing to/shoring up our base rather than wasting money chasing the elusive customers every other resort is chasing.

The last cut is the deepest

By Rick Phelps

“It’s not personal. It’s strictly business.” -Michael Corleone, “The Godfather,” 1972

The title of this article was running through my head as I hung up the phone after being told by the Town of Mammoth Lakes that the Town would not renew the annual contract with the High Sierra Energy Foundation that had been in place since 2005 – for about $15,000.

It was not a shock and we had already assumed no support from the Town for the coming year; and the funding is less than 10% of our budget. It was also consistent with what happened last year when we took a 40% hit while other nonprofits were taking 15%. Why not follow with 100%?

The funny thing is I agree with this decision. The Town is facing a crisis of crippling proportions. There will be pain on everyone’s part and the well-meaning, but perhaps not well-thought-out, delays of the last year only added to that pain.

We face a financial crisis and we must confront it by reducing costs so we can restore some economic health to our community and government — work out a payment plan and move on — quickly.

And I really wish the funding cut were personal and the Town Council didn’t like my Aloha shirts, my speech mannerisms or the articles I write.

Instead, I ask: Was an analysis done of all the recipients comparing their respective costs and benefits? It would seem that would be a first step in making any business decision. Or instead, the $15,000 to the High Sierra Energy Foundation, or $25,000 before last year’s cuts, is a pretty small amount and the Town Council might justly consider whether it’s worth the trouble to fund and administer; the Foundation has a small political base, its work is not visible and is certainly not critical for the survival of the Town.

But, if the decision were “strictly business,” I can’t help but wonder how the Council values our work over just the last 24 months, including:

• Participating with Southern California Edison in the Small Business Direct Install Program, which is saving 234 Mammoth Lakes businesses about $82,000 annually — the equivalent of about 50 solar homes in town

•  Working, and data sharing with the Mammoth View development on Alpine Circle, that helped lead to the first entitled development in Mammoth Lakes that will be heated by geothermal fluids. The Foundation introduced the developer to the consultant that conducted the initial feasibility study and we also provided access to our geothermal database, but received no compensation.

•  Facilitating and sponsoring with Mono County and Southern California Edison workshops on the California Green Building Code and California Title 24 Building Energy Efficiency Standards

•  Completing the sixth year of the LivingWise© program for 6th grade earth science students at Mammoth Middle School – co-sponsored by Mammoth Community Water District.

These accomplishments directly support the Town’s endorsement of the “U.S. Mayors Climate Control Agreement” (2007), a Council Resolution endorsing a “Renewable Energy Policy” (2004), as well as many energy references in the General Plan (2007).

In the absence of the High Sierra Energy Foundation, the Town, frankly, would have no energy-related achievements.

Despite the funding cut, Town government and the residents and businesses of Mammoth Lakes will still receive the benefit of our efforts and Southern California Edison will likely remain an enthusiastic partner. However, the question the Town Council will have to answer is that if this cut is “strictly business,” it doesn’t seem like very good business.

But then isn’t that how we got into this position to begin with?

Rick Phelps is Executive Director of the High Sierra Energy Foundation.  The views expressed in this column are those of the author and not necessarily those of his employer.

Mountain Living owner Vereuck reinvents “bath & kitchen” business

If you’re looking for Elegant Bath & Kitchen, you can stop. There’s no such thing in Mammoth anymore. However, if you’re looking for all the same great design and bath, kitchen and home space accoutrements and accessories, then you’ll be pleased to know that owner Dawn Vereuck has transformed that old business into the new and improved Mountain Living.

Complete with a new space in the Plaza complex on Old Mammoth Road, Vereuck said that when her lease came up for renewal at her old location earlier this year, she decided it was time for a change. “New space, new lease … new lease on life,” she quipped.

So Vereuck reinvented her business, which had its grand opening on July 3. Starting over gave her a chance to put more focus on the design component of Mountain Living. The new space, she added, is also more open and industrial. “After 10 years in the old space, I didn’t realize how dark it was.”

The move around the corner has given way to more lighting, more showroom space and more wall displays. “There’s actually less square footage, but for what I need, it’s a much better use of space.”

The name change was part of the plan. “It wasn’t an afterthought. ‘Elegant’ in these times isn’t a good choice of word. But with Mountain Living, there’s no stigma. We can be all things to all people. Living can be decor, kitchen, flooring, lighting.”

Not everything changed with the new concept. Vereuck is proud to point out what she’s retained her full-service, one-stop approach and quality product lines.

“We work with a lot of great local contractors, we do remodels, basically we’re trying to be as much of a one-stop experience for the clients. They can interface with us and we can help keep things simpler and more straightforward.”

She also emphasized Mountain Living’s access to the latest in sustainable materials and green product lines. “Every manufacturer these days has certifications for water or power or design or whatever that they want to push,” she said. “It’s not hard to find them, you just have to do some homework to find the best ones.”

Price drives a lot of purchase decisions, including aesthetics. “If you have to change a toilet or a faucet, for example, a lot of it is what it looks like. I encourage customers to spend a couple of extra bucks on the more efficient models, because you’ll recoup it down the line, and you’re saving water, which is important.”

Bottom line, Mountain Living can provide as much sustainability as people want or can afford.

Allison McDonell Page has played a lot of roles before and since moving to Mammoth Lakes. She’s a professional actress, ski instructor, theatre director, as well as a mom!

Recently the “renaissance woman” added another credit to her resume: realtor, having recently joined Snowcreek Property Co.’s real estate organization.

Originally from New York City’s upper west side, McDonell Page graduated from Harvard with a BA in Anthropology. “I spent the next 15 years as a professional actress in NYC, LA and theaters across the country,” she said. “I’ve worked in film and theater production, in casting for LA’s Geffen Playhouse, and as an editorial assistant on ‘The Advice Goddess” syndicated column. Four years ago, I moved to Mammoth Lakes with my husband, who’s a journalist and award-winning guidebook author, and our two boys.”

Allison’s also a certified Life Coach and part-time ski instructor at Canyon Lodge, and keeps herself active in local affairs by serving on the boards of the local Parent Teacher Organization and Sierra Classic Theatre Company. “I directed Shakespeare’s ‘The Merry Wives of Windsor’ at Sam’s Wood Site this summer and will direct again next year.”

It’s a diverse background she plans to use in her new career move with Snowcreek. “As a Snowcreek agent, I not only have immediate access to an ever-growing inventory of truly extraordinary homes, but I have the support of a peer group of truly extraordinary agents,” she said. “I have developed a wealth of knowledge and a great attention to detail. I believe in honest dealing and in providing my clients with the hard work and attention they deserve.”

With her background, how could Allison consider herself anything but a people person? “I strive to make the real estate process both fun, and ultimately rewarding. If you are looking to buy or sell, or even just talk about the real estate market, do not hesitate to call me.”

“We are very excited to have Allison onboard,” commented Snowcreek Property Broker Julie Wright. “Allison is honest, hardworking, smart and enthusiastic. She would be an asset to any office and we feel fortunate that she has decided to join our Snowcreek Property Company team.

Contact Allison McDonell Page on her cell at 323.646.5055, or via the Snowcreek Property offices at 760.934.3334. -Geisel/Press Release

There’s a new Ally Bank ad on television which shows a man in a suit operating an ice cream stand.

A little red-haired kid sitting nearby asks the man, “Can I have some ice cream, please?”

“No, it’s just for new people,” says the suit.

Another kid comes bounding into the picture and the suit immediately gives him a chocolate ice cream cone.

“Yeah, but I’m new, too,” says the red-haired boy who didn’t get any.

“He’s new … er,” replies the suit.

Locally, there are a lot of propane customers who’ve been feeling like the little redhead kid, lately.

A reader sent me the following email this week:

“I am currently a Turner Propane customer and pay $3.29 per gallon at this moment, versus the midwinter price of $4.05 per gallon I paid last winter. Of course, if you have the means, you can pre-buy 1,000 gallons right now for $3.10/gallon cash or check or $3.15 with a credit card.

I decided to call Amerigas to see what they would offer a potential customer and found out that their startup plan would be to waive the tank fee of $75 per year for the first year. In addition, the first 100 gallons are free, the next month is priced at $1.99/gallon and the next year at $2.99/gallon. As an established customer of Amerigas, you would pay your $75 tank fee and could do a pre-buy of any amount at $2.99, but I’m not yet sure of the regular price.

This then prompted me to have my neighbor call Turner as a potential new customer to see what their offer would be and they said they would waive the $78 tank fee for the first year and charge $2.79 a gallon per year.”

*As a point of reference, I live in Swall Meadows and am an Eastern Sierra Propane customer. My current price is $2.69/gallon. The winter pre-buy price is $2.99/gallon.

Withholding my reader’s name, I then approached both Turner Propane and Amerigas looking for comment. This is what I got.

Turner Propane District Manager Jim Miller emphasized his company’s commitment to safety and service.

One of those services, for example, is digging out snow-covered tanks. Though this is technically the customer’s responsibility (for those who have their own individual tanks), Turner has never charged to do it. AmeriGas charges $15.

Miller also noted that Turner has spent $600,000 over the past few years automating its meters so customers will be billed based upon real reads as opposed to estimates.

Turner’s service, which Miller said includes more personnel on the ground in Mammoth, faster response times and thorough safety checks, is reflected in its prices, which he acknowledged as being slightly higher than AmeriGas.

AmeriGas’s local Sales and Service Manager Jeff Pahlow said AmeriGas requires no pre-buy minimum (Turner requires a 1,000 gallon minimum).

His regular customers are currently paying $2.90/gallon right now.

The deal for new customers outlined in the letter quoted above is still valid.

Pahlow acknowledged that the new customer incentives tend to create a game of  “musical tanks.”

Sheet: Say someone left to get Turner’s new customer deal this year. Would you give them the new customer deal if they decided to return to AmeriGas next year?

Pahlow: Yes, provided their account was in good standing when they left.

“It’s a game [slashing prices to battle for the new customer] that gets ridiculous,” said Miller. “You don’t want a new customer bouncing back and forth every year,” he added. It creates a lot of busywork.

Both Pahlow and Miller say it’s worth a customer’s time to consult with his/her existing provider first before making a switch. “If we find our pricing’s out of line, we’ll match [what’s out there],” said Pahlow.

Switching providers may also subject one to “restock” fees. What this essentially means is that your existing company may charge you to pump the gas out of the tank you are removing.

Regarding the purge

Sitting through Wednesday’s Council meeting was painfully uncomfortable. Town Manager Rob Clark and Assistant Manager Karen Johnston were sitting next to each other at the Staff table, but Clark’s chair was turned to the right facing the Council dais and he had his left hand to the side of his head to block his peripheral view.

Johnston’s chair faced straight ahead. Her face was blank.

There was no one in the chair next to hers. Finance Director Brad Koehn had already stormed out of the room upon learning his position had been eliminated.

None of them could quite believe it had come to this. None could quite believe that a Council has finally emerged which is willing to deliver some unpleasant news.

One can only wonder how long Clark will last. A Town Manager evaluation is reportedly scheduled for Wednesday, Sept. 8. The date is significant  because it falls 92 days from the date of the last election. Why is that important? Because Council is prohibited from removing a Town Manager until 90 days after an election.

To the very end, there was an air of disbelief surrounding the staff cuts. “Can they [Council] really do this?” The agenda bill submitted by Koehn and Clark reflected a lack of comprehension of the gravity of their respective situations. It was yet another case of Staff concocting a slew of mathematical band-aids all designed to jigger the numbers and convince Council to let the status quo remain in place for another year.

Time’s up. The misdirection’s up. The abacus needs to make way for Quickbooks.

Staff had a chance to accept another year of furlough days in May. It declined. When the positions on the chopping block were made known to Staff, those not on the chopping block had no incentive to revisit the furlough issue. The unions refused to compromise. So much for solidarity.

Jean and Roger Fausnaught of Bishop cut their utility bills by almost $400/month when they installed solar panels at their home. (Photo: Fredericksen)

Considering propane prices and high electric bills, “free energy” sounds enticing, but it’s probably too good to be true, right? Correct. However, local solar power contractors are labeling sunshine “free energy” to advertise their businesses to Owens Valley residents. While in theory, owners of solar panels can tap the sun’s rays free of charge, installation costs are often too high to make solar energy seem worth the expense.
That being said, new federal tax credits and rebate offers have made investing in solar power cheaper than ever. Although for some home and business owners, installation costs are still daunting, solar contractors argue the technology will eventually pay for itself.
To generate local interest in solar energy, the Owens Valley Contractors & Vendors Association (OVCVA) partnered with the Eastern California Museum to host a public solar power conference in Bishop Tuesday, Oct. 20. The public turnout was impressive, totaling more than 100 people. The main objective: to connect local contractors to residents interested in solar energy solutions.
Debbie Kruse, vice president of OVCVA, said she hadn’t expected the event to be such a success, and the public interest may be a result of the recession.
“In these economic times, we’re paying attention to where all of our dollars are going,” Kruse said. “I think the economy is just making people more aware. I think money talks. It’s good to ‘go green,’ but it has to make economic sense too.”
Never before has solar panel installation been more affordable. The combination of the California Solar Initiative (CSI) rebate and the 30% Federal Tax Credit on the net cost of a system after rebate may cover about 45% of the average installation fee.
Dr. James M. Stroh, a former professor at the Evergreen State College in Washington State, was among the speakers at the conference. He said the majority of the state of California is a “geographical goldmine” for solar power.
In order to take full advantage of this, however, homeowners should schedule an energy audit on their house to analyze what their energy consumption is, said Scott Smith, consultant for Highpoint Solar. Based on that information, Smith said, owners can determine the best ways to become more energy efficient before installing a solar system.
Insulating and weatherizing houses before installation will save both energy and money, said Ron Saenz, co-consultant for Solar Energy Designers in Bishop. It makes more sense to install solar panels in an energy-efficient house. Otherwise, solar energy is just wasted energy, Saenz said. Home improvements like insulating walls, caulking window and door frames, and replacing single-pane with double pane windows, will inevitably lower energy bills.
Paying for home improvements is worth the expense. “You want to buy the smallest sized system possible, because solar is expensive,” Smith said.
After revamping a house, the owner may then schedule a consultation with a solar contractor. These consultations are usually free, and the contractor will do a site survey, check the roof pitch and shaded areas, and give estimates on how much the installation will cost, before and after rebates and tax incentives.
Roger Fausnaught, a homeowner in Bishop, said during the summer last year he was paying $400-500 per month in utility bills. But after installing solar, his utility bills averaged about $60-70 per month. He said Sierra Solar installed his system quickly and efficiently, and he’s pleased that the only maintenance work he has to do is hosing dirt off the panels every so often.
Currently, surplus solar energy is pumped back into the utility grid. But after Governor Schwarzenegger signed the bill AB 920, utility companies will soon start paying their home and business owners for excess generated solar energy. AB 920 will require utility companies to compensate customers annually when their solar systems produce more energy than they use in a given year.
Investing in solar will also increase a home’s resale value. National solar expert and economist Andy Black estimates that for every thousand dollars per year of utility bill that you eliminate with renewable energy, you add $20,000 dollars of value to your home.
“If you’re living in a sunny area like this, there are very few reasons why you shouldn’t invest,” Fausnaught said.
Smith said that there is no better time to invest in solar energy. If a person is considering solar for his/her home it’s best not to wait. With the current California tiered rebate system, purchasing a solar system sooner will guarantee a higher rebate.

Household Energy-Saving Ideas:

If small improvements to household energy-efficiency are made, owners can save on energy bills.
Replace appliances with ENERGY STAR qualified models
Invest in high performance windows to increase comfort and save energy
Install R-13 or higher thermal resistance insulation in walls and R-30 or higher insulation in ceilings.
To reduce use of air conditioning, consider installing an evaporative cooler
Install compact or linear fluorescent lighting fixtures to replace incandescent lighting fixtures
Replace torchiere lighting fixtures containing halogen lamps with more efficient fluorescent torchieres
Caulk around doors and windows to reduce leaks
Invest in a pool or spa cover to minimize heat loss from evaporation
Install an energy-efficient pool pump motor

Local insurance brokers talk about their business as well as Obama’s business … and how it relates to them

Insurance. It reminds me that I’m not as carefree as I once was. As Bob Dylan sang in “Like A Rolling Stone,” “If you ain’t got nothin’ you got nothin’ to lose.”
And that generally described my financial position until The Sheet made me a multi-millionaire.
Hah!
Having published all sorts of letters and op/eds (including more this week) from folks who have their opinion on the issue (and speculate as to what kind of effect health care reform will have on everyone’s wallets), we decided to interview local insurance brokers about their businesses, and about the potential impact of Obamacare.

The man who came back

Brian Jaegers may be the newest kid on the block amongst local insurance brokers — or at least the youngest — but he does have one thing the others don’t: an advanced degree in financial planning.
Jaegers is a graduate of both Bishop High School and Chico State University, from which he graduated in 2003 with a dual major in finance and accounting. He later obtained his ChFC (Chartered Financial Consultant).
Upon graduation, Jaegers began an internship with Northwestern Mutual (investments and life insurance), eventually parlaying the internship into a job.
His wife Lisa is from the Bay Area and works for Cindy Butner.
Jaegers moved back to Mammoth Lakes in 2006 and started his Inyo Mono Insurance business in Oct. 2008.
He recently cemented a deal to sell Traveler’s Insurance products and services. It’s not an exclusive He maintains his independence as a broker. But Traveler’s, says Jaegers, does have strengths in home/auto insurance as well as small business markets (particularly commercial buildings) Traveler’s was recently added as a Dow Jones Industrial Average (DJIA) component, which Jaegers says is a sign of the company’s strength.
In regard to the insurance business, Jaegers had some interesting insights into the human mindset.
“There’s nothing harder, in a lot of ways, than selling life insurance,” said Jaegers. “It’s hard to conceive of one’s own mortality. No one wants to pay for it. No one wants to talk about it …
… As opposed to homeowner’s insurance. And yet, you’ve got far greater odds of dying than your home burning down, but still …”
When it comes to healthcare reform, Jaegers said it wouldn’t have a large effect on his business because not much of his revenue comes from health insurance. That said, he would support healthcare reform. “I think it’s important … I just haven’t seen anything yet that makes me excited about it. You see a lot of buzzwords without the meat of the solutions.”
One thing Jaegers recommends for those with high medical deductibles is a health savings account (HSA). HSA’s allow you to reduce your taxable income while setting money aside for items such as eyes and teeth, which may not be covered by your regular insurance.

The woman who arrived

Linda Wright took over State Farm’s Mammoth Lakes branch in March, 2008 after 20 years with the company in Bakersfield.
Wright said State Farm is a one-stop shop. Not only does it sell every type of insurance, but it’s also a virtual bank, offering credit cards, money markets and mutual funds.
“The more people package [meaning the more you carry with State Farm, from homes to cars to medical), the greater the savings.” said Wright.
“What we do best is take care of every insurance and financial need. And we like to grow with our clients. Start with a 16-year old getting his/her first car and go from there.
It makes you feel really old when they come in and they’re 36.”
In addition to offering competitive rates, Wright feels her other advantage is convenience ... and service, with an experienced team of four working out of a local office. Advantage = convenience. And with an office right here, service.
On the differences between doing business in Mammoth as opposed to Bakersfield: “Here, you’re insuring condominium HOAs (homeowner associations) opposed to apartmentbuildings. We’re also more into securities/financial services than Byron Walters was.”
On healthcare reform, Wright is a little leery of big government’s big plans. “I don’t think we have a clear enough picture yet ... but I prefer to have options for myself.”

The man who never left

Eric Olson of Farmer’s Insurance has been in business locally for 20 years, and he’s not going anywhere. After all, Farmer’s home state is California.
Like State Farm, Olson’s is a one-stop shop. “Our strength is that we offer great policies which work together offering cross-discounts. And our fire rates are as good as anyone’s.”
The other strength is Olson, his experience and his longevity. “Most underwriters don’t know the particulars of a region and don’t want to insure for fire. But we’ve got a great fire department and Chief Harper’s got an aggressive fuels reduction program.
“I’m pretty good at convincing people to approve fire insurance and my fire book has been profitable 19 out of 20 years.”
Olson is sensitive to the healthcare reform issue, especially from seeing what happened this year when Anthem pushed through a fairly large rate increase.
“A lot of people rethought their need and dropped their coverage, “ he said. “I’ve never seen that before. My book’s down 10%. Normally, a rate increase pushes my book higher, but I think it’s reaching that tipping point where some people think the coverage doesn’t justify the premium.”
“We’ve got the best healthcare system in the world and the best technology, but we’ve got to pay for it, and right now, the customer keeps paying more and getting less.”

The man who came back. Part II

“I was done. When I left, I thought my days in Mammoth were numbered … Being away allowed me to realize what I needed, what I wanted to do." -Brett Walters

Brett Walters, who spent eight years working for his father Byron at State Farm’s local Mammoth branch office, has returned to town and has opened his own independent insurance agency.
Walters describes his specialty as commercial lines; business insurance, condominium associations, contractors ... anything related to business.
“Dad was a P & C [property and casualty] guy and I am, too,” said Walters. “I started from scratch a little over three months ago with zero clients. Dad also started with zero clients. The business just takes time.”
Walters acknowledges he does have a headstart in that people know him from his days at State Farm.
Sheet: Is the pie big enough in this town to support four insurance brokers?
Walters: Yes. A lot of stuff I’m doing now is being handled by brokers who don’t even live here.
“As an independent broker,” continued Walters, “I can research the market to best meet the needs of my client. I work with underwriters to tailor policies to individual need. But I’m coming back with a different focus. My client base at State Farm isn’t necessarily the market I’m penetrating now.”
Sheet: What’s your take on the health care debate?
Walters: I agree there’s room for improvement, but it requires more debate and assessment … Doctors do need more protection. Malpractice premiums are sky-high.
Philosophically, Walters says he is all about customer service. “Service is the difference between being an order-taker versus examining the situation and appropriately addressing the needs of the client. “And it’s important to review one’s coverage every time it comes up for renewal. One’s risks, exposures and needs change constantly.”