February 16, 2001 Issue

ISSUE NO. 29 FEBRUARY 16, 2001 OUR 79^th YEAR

http://RotaryClubofSantaMonica.org

WILL OUR LIGHTS GO DIM?

WILL POWER BILLS CLIMB?

During an earlier energy crisis, Dan Rather of CBS remarked, “You can fuel some of the people all of the time …” Still true. Friday we’ll hear an analysis of the current crisis from our own Mark A. Olson, Southern California Edison’s region manager (and a ten-year Rotarian).

Edison provides electricity to 4,300,000 customers in California. On February 1^st it defaulted on $740 million in bills it had recently run up by paying $40 million a day for power it was forced to buy on the sky-high spot market. To conserve cash, the company cut hundreds of jobs and stopped paying quarterly dividends.

Santa Monicans have been spared the “rolling blackouts” cast briefly on various parts of the state by Edison and the other giant utility, Pacific Gas & Electric Company. Our power comes from the L.A. Department of Water & Light. But we can’t be sure the shortage won’t widen. An Idaho senator remarked last week, “The brownouts in California could be the brownouts of Idaho, Oregon and Washington next summer.”

Edison’s parent company is active in state politics. Last September it gave $15,000 to Governor Gray Davis’ campaign fund, and $27,000 to fifteen members of the legislature. However, an Edison vice-president said, “We cut off all new campaign contributions in December.” He added that money it gave to lawmakers came from shareholders, not customers – and also that 500,000 of Edison’s low-income customers still enjoy a 15% discount on their monthly bills.

The electricity crisis arose because the legislature voted unanimously in 1996 to deregulate the energy market, believing this would open the business to competition. But few companies entered the market, and the wholesale cost of electricity soared as demand rose. But the utilities are barred from raising consumer rates. Despite help from the state, they are struggling to buy enough electricity.

Earlier this month the governor signed into law a bill that lets the state buy electricity and sell $10 billion in revenue bonds to pay for that power. But nobody knows how much power will be offered and at what price. So the impact on consumer rates is unknown. Likewise, no one can foretell whether the Public Utilities Commission will be allowed to let power companies raise rates to consumers. Probably there’ll be other developments between the time this is written and the day Mark updates us (February 16^th).

Meanwhile Mark, as one of Edison’s leading spokesmen, has been making speeches and answering questions all over southern California. He still lives in Thousand Oaks (where he settled when he was Camarillo manager for the company), and commutes daily to his office here on 22^nd Street. If he should look a bit ruffled by the time he gets to us, we’ll understand why.

At our February 2^nd meeting, it was revealed that a recent news article bestowed high praise on our past president, Dick Lawrence, head of Encino Bank at Wilshire & Lincoln. Phrases like “well connected … great attitude … customer service” were sprinkled through the article. I’ll add my own accolades, “kindness … caring … team effort”. Dick and his staff not only say thanks for new business and wish their customers happy birthdays, but they follow up with signed cards and notes. All together, there were numerous reasons why Dick was fined $125. Another who might have been fined for similar reasons was another of our past presidents, John McIntire, who likewise is a major reason for the bank’s success. Incidentally, isn’t the town of Encino in San Fernando Valley? What is the relationship, if any, between the town and the bank in our town? The Spanish word ‘encino’ means a small isolated hill. Is that the reason for the bank’s name? Anyhow, congratulations to Dick and his team!

When Esther Johnson was hurt by a fall after a recent Rotary meeting, Dr. Dick Rice just naturally took charge. He not only helped Esther after the fall but also made a house call to double-check. Our honor and esteem for him are boundless. Learned men in the club have described him as a Renaissance man. He certainly showed his versatility during the years he was medical director at Santa Monica Hospital. Many of us recall his 1983-84 term as president of our club, when he marshaled our members behind Rotary International’s goal to eradicate polio worldwide, and in 1996 when he led a drive to raise $75,000 for our club’s own Rotary Foundation. Thanks for the $25 fine, Dick.

Paul Leoni was fined $50 for “no activity”. This cannot be. He’s continuously active in service to the community, especially through the YMCA and the Boys’ and Girls’ Club. Our newer members may not know that Paul and Marilyn Leoni have owned and operated Patton’s Pharmacy at Lincoln & Montana for approximately 21 years. People count on friendly and professional service there.

February 23^rd: Will be at Boy Scout Camp Josepho, 2-1/2 miles into Rustic Canyon, as a joint meeting with the Pacific Palisades club. Maps available from Rotary, or follow the signs up Capri from Sunset.

March 2^nd: Jill Stewart of New Times will update us on the big coming changes at Playa Vista.

March 9^th: Jeff Goodman will suggest how to reach “Success on the Far Side of Failure”.

Each month THE ROTARIAN magazine mentions a few of the numerous good works around the world by the Rotary International Foundation. Funded entirely by dividends from $1,000 Paul Harris Fellowship contributed by thousands of members, it pumps about $30 million a year into charitable projects picked by Rotary International officers.

Its youth scholarships alone are one of the biggest enterprises of the kind. Each year it sends about 1,150 young people to study abroad. This is fourteen times as many as go on Rhodes Scholarships. And the total spent by the Foundation to cover their expenses (about $11,300 per student) is four times the total that goes into Rhodes Scholarships.

More than a hundred members of our club have dug deep to become Paul Harris Fellows. Some of these generous Rotarians may feel a bit befogged at talk of local operations by a Rotary Foundation – because here we are part of two different Rotary Foundations.

In 1973 three of our most active members – Aubrey E. Austin Jr., Gerald Jennings and Ralph Kiewit – conceived a big idea. “All the two dozen charitable organizations in Santa Monica are struggling along on slender budgets,” they said. “They can’t afford elaborate fund-raising operations. Our club should set up a fund that can donate specific amounts for specific needs of these organizations.” They determined to raise $50,000 for the club’s February 1972 birthday celebration. They succeeded.

In following decades the original $50,000 grew to almost $500,000 as various members and sympathizers either sent checks or remembered the Foundation in their wills. One memorably substantial gift came from Mrs. Walter D. Newcomb Jr., whose husband was an enthusiastic member of the club until he died in 1954. His son-in-law was Phil Whiting (who served terms as treasurer and vice president, and personally took five Paul Harris Fellowships). Phil occasionally mentioned local Rotary Foundations to Mrs. Newcomb. When she died in 1981 she left $40,000 to the foundation.

The biggest boost of all came in 1996 when Dr. Dick Rice led a drive to add another $75,000 to our foundation’s resources to celebrate the club’s 75^th birthday. More than two-thirds of the club’s members contributed, and the drive attained its goal.

Eight long-time members of the club, mostly past presidents, serve as the Foundation’s board of trustees. Twice yearly they get together to give away about $15,000 – the amount which has piled up in dividends at 6%. Earnings aren’t allowed to accumulate. The trustees use them promptly to help make Santa Monica a better place to live.

“This month, we commemorate a very special anniversary – the birth of Rotary on 23 February 1905, known as World Understanding and Peace Day. During Rotary’s 96 years of existence, we have accomplished milestones in service that even founder Paul Harris could not have envisioned during his lifetime. We have provided educational opportunities for thousands of international scholars, provided health care to tens of thousands of needy people, and made possible the immunization of millions of children against the crippling disease of polio…

“To me, the magic of Rotary is its internationality. The incredible diversity of our organization is its greatest asset, and it is what distinguishes us from other organizations. Through international programs such as Youth Exchange, Group Study Exchange, the Ambassadorial Scholarships program, Matching Grants and World Community Service, we are able to expand our reach of service.”

Rotary Club of Santa Monica

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