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HomeMy WebLinkAboutBUDGET & FINANCE AGENDA 02-02-09 Central Contra Costa Sanitary District 5019 Imlloff Place, Maltlnez, CA 94553-4392 (925) 228-9500 . wwwcentlalsan OIg BUDGET AND FINANCE COMMITTEE Chair Lucey Member Nejedly Monday, February 2, 2009 3:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California INFORMA TION FOR THE PUBLIC ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA Anyone wishing to address the Committee on an item listed on the agenda will be heard when the Committee Chair calls for comments from the audience. The Chair may specify the number of minutes each person will be permitted to speak based on the number of persons wishing to speak and the time available. After the public has commented, the item is closed to further public comment and brought to the Committee for discussion. There is no further comment permitted from the audience unless invited by the Committee. ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA In accordance with state law, the Committee is prohibited from discussing items not calendared on the agenda. You may address the Committee on any items not listed on the agenda, and which are within their jurisdiction, under PUBLIC COMMENTS. Matters brought up which are not on the agenda may be referred to staff for action or calendared on a future agenda. AGENDA REPORTS Supporting materials on Committee agenda items are available for public review at the Reception, 5019 Imhoff Place, Martinez. Reports or information relating to agenda items distributed within 72 hours of the meeting to a majority of the Committee are also available for public inspection at the Reception. During the meeting, information and supporting materials are available in the Conference Room. AMERICANS WITH DISABILITIES ACT In accordance with the Americans With Disabilities Act and California Law, it is the policy of the Central Contra Costa Sanitary District to offer its public meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require special accommodations to participate, please contact the Secretary of the District at least 48 hours in advance of the meeting at (925) 229-7303. A ~ it Recycled Paper Budget and Finance Committee February 2, 2009 Page 2 1. CALL MEETING TO ORDER 2. PUBLIC COMMENTS 3. OLD BUSINESS *a. Review Outstanding Questions 4. CLAIMS MANAGEMENT *a. Review Outstanding Claims 5. CONSIDERATION OF BEGINNING INVESTMENT IN THE GASB 45 TRUST 6. REPORTS/ANNOUNCEMENTS a. Natural Gas Prices b. Rates and Charges (Item 7.a.2) in Board Binder) *c. Articles of interest *7. REVIEW PROPOSITION 218 NOTICE 8. REVIEW EXPENDITURES (Item 4.a. in Board Binder) *a. Detail of P-Card expenditures over $2,000 with description "Procurement Purchases" (First Committee Meeting each month) 9. ADJOURNMENT * Attachment 3.(L. Central Contra Costa Sanitary District January 30,2009 FROM: BOARD BUDGET AND FINANCE COMMITTEE RANDALLMUSGRAVES ~~ DEBBIE RATCLIFF OR- TO: SUBJECT: January 12, 2009 FINANCE COMMITTEE MEETING The following questions were outstanding from the prior Board Budget and Finance Committee meeting. The questions and responses are provided below: 1. Page 21, 173719 - Provide information on the procurement purchase of a $678 telephone. This is a heavy duty outdoor phone that resides in a weatherproof box. It also has an armored (metal) cable for protection. The phone is used at the front gate of the plant so that employees can drive up and call the control room to be admitted after hours. 2. Page16, 173693 - National Elevator Company Inc. - What is the monthly maintenance charge? The monthly maintenance charge for the HOB building elevator is $190. For the plant site, it is $580 per month. The plant site cost more because there are three elevators to service; a freight elevator by the machine shop and in the Solids Conditioning Building, and a passenger elevator in the Solids Conditioning Building. 3. Page 44, 31515 - City of Pleasant Hill - What was the $924 charge for? This charge was associated with the Pleasant Hill Sewer Renovation Project. The City charged the District to inspect the work of the video inspection contractor that was being used on the project and to inspect the traffic controls that were in place at the site. m o o C\I en ~ ...... "t:l 2 ,50 ct ~ CU E E ::s U) e ::s :t:: "C C Q) C. >< W I;; II) ~ 0 ro "0 E ; ~ ro 0 Cl Cl i II) II) 0 ro ~ 0 e 0 ... a... Cl .g ... II) J!l .g ro 8 'E 0 ... Q) .g g E Q) J!l 'N l!? II) 'I: :::I 8 .l!l ..c a; I: E ... ~ ;< Q) ~ ~ Q) I: .t:! 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The executive, Christian Milton of Wynnewood, Pa., was sentenced by Judge Christopher F. Droney of Fed~ era! District Court in Hart. ford. lie was. also. fined $200,000. Mr. Milton declined to speak during the hearing but his lawyers said they were preparing an appeal. He was ordered to report to the federal Bureau of P~ on March 25. . Mr. Milton, 61, A.I.G.'s vice president for. reins~ from 1982 to 2005, was con- victed'1ast Year of conspiracy'; securities..fraud". man fraud and maldna false statements to the Securities and Ex- c::MlIGlllWlil( AS$OCl.\'IID PIlE5S Christian Milton, 61" ar- rived a( coutt on Tueacfay. chanae Commission. The investiption also led to ~eonvieti~s of f()ut euc\Jlo tiveSOf~r1eral'~_yeat for theirroles in manipulating A.I.Go's financial statements. rJt~ fz f/oi roo C. Al\J salO to pay mll1lOns to keep derivatives staff I Chronicle I Chron.com - Houston Chro... Page 1 of2 -r:rchron.com I Where Houston lives AIG said to pay millions to keep derivatives staff By HUGH SON Blomberg News Jan. 27. 2009. 3:15PM American International Group Inc., the insurer that nearly collapsed because of losses on credit- default swaps, offered about $450 million in retention pay to employees of the unit that sold the derivatives, according to two people familiar with the situation. About 400 workers at the financial products unit may get the money in two installments, said the people, who declined to be named because the payments were confidential. The business was responsible for about $34 billion in writedowns since 2007 as the market value of swaps AIG sold to banks plunged amid the subprime mortgage market collapse. The payments bring to more than $1 billion the amount AIG has committed to keep its employees from leaving. The New York-based insurer took a federal bailout in September to avoid bankruptcy and is selling units to repay the government. AIG disclosed the existence of the unit's retention program in regulatory filings, including a quarterly report in August. "We adopted and disclosed this contractual retention program months before the government provided support to AIG, " said Christina Pretto, a spokeswoman for the insurer. "It was clear, given the market environment, that Advertisement we would need to retain employees to manage the complex issues arising in our financial products business, which we are now unwinding." Chief Executive Officer Edward Liddy has been providing data on employee compensation to Congress, saying retention programs are needed to keep the value of the units from eroding as AIG seeks buyers. The payments have drawn criticism from legislators including Representative Elijah Cummings, the Maryland Democrat who said that the awards are unnecessary while employment markets are weak. The U.S. lost almost 2.6 million jobs in 2008. "I was extremely disappointed - but not surprised - to learn that AIG will be awarding bonuses to the very division that drove the company into the ground," said Cummings, a member of the House Committee on Oversight and Government Reform, in an e-mail. AIG shouldn't be awarding "millions of unmerited dollars to employees while at the same time begging the U.S. government for financial life support. " The insurer started the retention plan for the financial products unit in the first quarter of 2008, AIG said in a filing. The program guarantees a minimum level of pay through 2009 for employees, who had $563 million wiped out from existing compensation plans in the third quarter of 2008, AIG said. Pretto said AIG cut almost $800 million of deferred compensation to the unit's employees and that the most senior workers will get less o Print Powered By ~ Dynarnics http://www.chron.com/disp/story.mpl/business/6233119.html 1/29/2009 AIG said to pay millions to keep derivatives staff I Chronicle I Chron.com - Houston Chro... Page 2 of2 *chron.com I Where Houston lives than half their usual compensation. competitors since September, according to data compiled by Bloomberg. Zurich Financial Services AG, Switzerland's largest insurer, has announced at least six hires. Joseph Cassano headed the financial products unit until stepping down in March after his operations drove a $5.29 billion quarterly net loss for AIG. The financial products business was founded in 1987 by Cassano and other ex- employees of Drexel Burnham Lambert, the securities firm that helped popularize "junk- bond" investing before it collapsed. www.bloomberg.com Cassano built financial products into a business providing guarantees on more than $500 billion of assets at the end of 2007, including $61.4 billion in securities tied to subprime mortgages. AIG had to seek an $85 billion federal loan in September after downgrades of its credit rating, which the company previously said could force more than $10 billion in collateral calls from the debt investors who bought swaps to protect against losses. The bailout expanded to $150 billion in November, partly to fund an entity designed to retire the swap contracts by purchasing the underlying assets from banks. AIG kept Cassano on as a consultant, paying him $1 million per month until lawmakers lambasted the company on compensation and perks in an Oct. 7 hearing. He earned $280 million since 2000, according to Representative Henry Waxman, former chairman of the House Committee on Oversight and Government Reform, which held the October hearing. There is "no assurance" that the retention programs will work, AIG said in the November filing. At least 30 AIG managers have defected to Advertisement o Print Powered By rj Dynamics http://www.chron.com/disp/story.mpl/business/6233119.html 1/29/2009 7 Central Contra Costa Sanitary District 5019 Imhoff Place, Martinez, CA 94553-4392 (925) 228-9500 . wwwcentlalsan OIg NOTICE OF PROPOSED INCREASE IN ANNUAL SEWER SERVICE CHARGE Dear Property Owner: Central Contra Costa Sanitary District (CCCSD) provides sanitary sewer, household hazardous waste collection, and recycled water services in the central county area. Sanitary sewer service includes building, operating and maintaining public sewer pipelines, the wastewater treatment plant in Martinez, and the pipeline that discharges clean, treated water to Suisun Bay. To pay for these services, CCCSD collects an annual Sewer Service Charge from each property connected to the sewer system. The service charge rates are calculated for each customer group based on the cost to provide service, considering both the quantity of sewage discharged and other sewage characteristics affecting the cost for treatment. For most property owners, this charge is billed as a line item labeled "CCCSD SEWER CHG" on the property tax bill they receive from Contra Costa County. For about 300 properties, particularly government and non-profit facilities, CCCSD bills the property owners directly. FOR RESIDENTIAL CUSTOMERS, each single-family home, mobile home, townhouse, condominium, apartment, and other multi-family home is charged a uniform rate for sewer service. The current residential rate is $311 per year. The Board will be considering an increase of up to $15 per year or $326 for Fiscal Year 2009-2010, effective July 1,2009; and an increase of up to $15 per year or $341 for Fiscal Year 2010-2011, effective July 1,2010. This is an increase of 4.8% the first year and 4.6% the second year. This service charge increase is necessary to pay for increases in costs due to inflation, additional pollution prevention programs to meet National Pollutant Discharge Elimination System (NPDES) permit requirements, collection system improvements to meet new regulations regarding overflow reductions, and needed pipeline and facility improvements. FOR NONRESIDENTIAL CUSTOMERS ONLY, the service charge increases being considered are shown on the reverse side of this notice. NOTICE IS HEREBY GIVEN, that the Board of Directors of the Central Contra Costa Sanitary District will hold a PUBLIC HEARING on this matter in the CCCSD Meeting Room, 5019 Imhoff Place, Martinez, California, on Thursday, June 4,2009, at 2:00 p.m., at which time and place interested persons may appear and be heard. Written comments or protests may be mailed to the Secretary of the District at 5019 Imhoff Place, Martinez, CA 94553, or emailed to ratesCG2centralsan.ora and must be received by 5:00 p.m. on May 28, 2009 to ensure a full review. If you have questions about the proposed Sewer Service Charges, please call CCCSD's Environmental Services Division at (925) 335-7739. Notice mailed prior to April 21,2009. 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