SYSTEM:
Please welcome Carl who just joined the chat.
Carl:
Good morning
SYSTEM:
Please welcome solutions who just joined the chat.
SYSTEM:
Please welcome ProducerBadBob who just joined the chat.
solutions:
the CITIZENS own REU... shouldn't they be cutting rates !!!
solutions:
what is the condition of their pensions...
solutions:
aren't they asking to RAISE rates ?
SYSTEM:
Please welcome onion_grower who just joined the chat.
solutions:
REU is about to get 6 million back from the court case...they wanted to spend it before it was put back in the fund
SYSTEM:
Please welcome Sungold who just joined the chat.
Sungold:
Good Morning
solutions:
its a big guess.... the largest issue is the lack of adjustment in the discount rate and their continual projection of 7.5% which is most years is unattainable
onion_grower:
Redding's ace in the hole is that it can sell the natural gas power plant too PGE. There is no reason redding should be in the business of making electricity any more than making guitars or motorcycles.
Sungold:
Paper never reported a big high speed chase down Alta Mesa early Sunday am. Involved RPD (lots of them) Sheriff, CHP and helicopter. Perp crashed at corner of Alta Mesa and Hartnell and got away, even with all those resources.
solutions:
no reason to keep these salary and pension levels going at these levels... make the adjustments required
Sungold:
Cal Pers still up and running
onion_grower:
Redding already buys most of its power, like from Bureau of Reclammation. Lot of the unfunded pension liability is from the natural gas power plant. It employs futures traders which we don't need. PGE can trade futures contracts. It doesn't cost more to trade 12 contracts than 10.
onion_grower:
The engineers who operate the power plant would still live in town and shop here. It is only a few jobs which would be lost. and it would hugely benefit the long term finances of the city.
solutions:
don't be leaving yourself a back door...."if I run the Spartan".....
onion_grower:
Futures trading is a zero sum game. Ask Curt Largent who worked as a trader in chicago board of trade. You can make ten sucessful trades then lose it all on the eleventh.
solutions:
selling REU just to pay unfunded pension issues may not be our best answer.. it is a revnue source that would be lost....the bigger issue is the unsustainable cost that must be cut from the inflated salary levels and pensions
onion_grower:
Not selll REU. Sell power plant. Keep the distribution business. REU, though does not have lobbyists in Sac like PG&E, so it is at a disadvantage like SMUD
SYSTEM:
Please welcome Joe who just joined the chat.
onion_grower:
When Redding has to sell the natural gas plant in bankruptcy, it will get a lousy price. Sellers in bankruptcy get pennies on the dollar.
Joe:
If the city has the funds for the new REU building and engineering, why not use those funds to solve our police crisis without needing a tax increase?
Joe:
Or use the funds to build a jail to help solve that problem?
onion_grower:
The natural gas plant is Redding's only liquid asset for the bankruptcy court to liquidate.
solutions:
very unlikely this will lead to bankruptcy
solutions:
as much as that would be a solution that would sens a strong message...it wouldn't help us with the unfunded pensions needs...courts have already ruled and citizens would be unlikely to go for that
solutions:
send
onion_grower:
Two good articles from Flash report on unfunded pensions, with lots of graphs
onion_grower:
http://www.nytimes.com/2016/09/18/business/dealbook/a-sour-surprise-for-public-pensions-two-sets-of-books.html?_r=0
onion_grower:
http://www.latimes.com/projects/la-me-pension-crisis-davis-deal/#nt=oft09a-9gp1
solutions:
5 million of taxpayer money ...was this part of the original plan ? did they tell the taxpayers this when the move was discussed ?
solutions:
Eric is a celebrity... in many ways on many websites most of which can not be listed on this site but he is celebrated in some circles...
solutions:
this gal needs to be tested...fill the cup young lady...
onion_grower:
It is not a matter of If we sell the natural gas power plant. It is a matter of when. Waiting until bankruptcy will get the worst price.
solutions:
do we earn a net profit at the end of the year ? from REU
onion_grower:
The profit would probably be about the same. Most profit comes from buying electricity from other producers and selling it to customers.
onion_grower:
The unfunded pensions from the natural gas power plants is a big negative long term for Redding. We need long term thinking on city council and city staff. Of course, they can move away when things get too bad in Redding.
solutions:
that isn't what the books are showing...REU seems to be a profitable business without futures trading... maybe they have been trying to be more than what they were intended to be
ProducerBadBob:
The power plant gets a pension?
solutions:
it seems like if they cut the extra, they could cut local rates and still make a profit for the citizen owners
solutions:
cutting our REU rates would be a draw for some businesses considering Redding for relocation
solutions:
we need to use REU more as an asset to attract business
solutions:
alright guys...you are enablers....she is obviously under the influence and you just keep her going...
ProducerBadBob:
So the prevailing solution to all of Redding's problems seems to be to throw as many people out of work as possible and force those would otherwise purchase goods and services and raise their families here ... to move... elsewhere??? Not talking about managers...talking about rank and file WORKERS>
solutions:
lol
solutions:
selling one of our only unique assets is not a solution I would want to consider
solutions:
REU could be a unique draw for businesses that want to relocate or expand into the California market
solutions:
Carl has never been in Lassen park because of a long standing restraining order... but we could start movement to have it released...something about a chipmunk and violence
solutions:
I'm sure the chipmunk has moved on or passed away by now
onion_grower:
Selling the natural gas p ower plant to PGE would put the futures traders out of work. The rest of the employees would be PGE and on PGE pension. I wonder if REU is having trouble recruiting because people know it is only a matter of time before the power plants have to be sold, either in bankrupt
Joe:
PG&E has been in bankruptcy for how many years now? And has higher electrical prices than REU
SYSTEM:
Please welcome BigTimber who just joined the chat.
onion_grower:
Selling the power plant does not mean changing REU rates. The natural gas power plants are only a separate businesss. PGE rates are higher because it is rural and those poles are expensive to maintain. REU would stay mostly in the city, mostly underground, much cheaper to maintain.
ProducerBadBob:
http://reason.org/authors/show/pete-constant
ProducerBadBob:
link to Reason Foundation website.
solutions:
Moty tried to say it was like a mortgage also... never understood that likeness... subprime makes sense but there still is no asset attached...seems like credit card debt
Joe:
move to a defined contribution pension system instead of a defined benefit would be a good first step.
solutions:
that additional 49 cents on every dollar is what sets the RPD revenue commitment into the top 10 in the nation
onion_grower:
Waiting until bankruptcy court forces the sale of the power plants for pennies on the dollar is not a good idea. PG&E is a San Francisco company with plenty of lobbyists. It can't lose in the legislature.
solutions:
and REU belongs to the same lobbying groups and commissions that other utilities do... not as big of a player but they take advantage of what PG&E gets approved
ProducerBadBob:
From Wikipedia: PG&E Company (the utility, not the holding company) entered Chapter 11 bankruptcy April 6, 2001. The state of California tried to bail out the utility and provide power to PG&E's 5.1 million customers, under the same rules that required the state to buy electricity at market rate h
ProducerBadBob:
The crisis cost PG&E and the state somewhere between $40 and $45 billion.[57] There is some evidence that this crisis played an important part in the eventual recall of California Governor Gray Davis. PG&E Company, the utility, emerged from bankruptcy in April 2004, after paying $10.2 billion to it
ProducerBadBob:
PG&E Company, the utility, emerged from bankruptcy in April 2004, after paying $10.2 billion to its hundreds of creditors. As part of the reorganization, PG&E's 5.1 million electricity customers will have to pay above-market prices for several years to cancel the debt.
onion_grower:
The state will always bail out PG&E. It won't bail out REU or SMUD.
solutions:
and that 219 million is 2014 numbers... last year available
ProducerBadBob:
If you want to call, best time is 8:30ish
onion_grower:
Don't confusse the natural gas power plants with rates. Selling the natural gas plants and avoiding that part of the unfunded pension liability will help this community.
solutions:
it does not take into consideration the .6 (point 6) return earned this year compared to 7.5% projected
SYSTEM:
Please welcome Russell who just joined the chat.
solutions:
discount rate is a JOKE
Russell:
Privatization is the only way to stop the bleeding. End additional liabilites. And start funding the debt.
solutions:
ask Pete... the board that over sees CalPers...are the Govt workers (NO) but why do they partake in the CALPERS system...seems like a conflict of interest
onion_grower:
We need to think long term. Have a plan for Redding's municipal bankruptcy. It is coming. Selling the natural gas power plant now will get a better deal than waiting for Bankruptcy court to sell it for pennies on the dollar.
solutions:
Russell...you nailed it...only solution I have come up with as well....STOP THE BLEEDING
onion_grower:
The democrat's plan is to pretend the pension liability crisis does not exist. It will blow up in the next recession, likely in the next 2-4 years. Then the feds will bail out CA as a stimulus plan.
Russell:
The legislature has started a state social security fund. Now voluntary. But in the long run it will be mandated on all of the private sector at a contribution rate of 4-6% for the worker.It will be run by ......PERS.
Joe:
until the public employees realize that their pension is in jeopardy this problem will not be resolved. The system will have to have a meltdown before it is fixed. (like Social Security)
solutions:
feds won't be able to bail anyone out.... this is an issue across the nation....estimated at 6 TRILLION dollars...you bail one out you have to bail them all out...one of the largest pensions is currently asking the treasury dept to allow them to cut pensions
solutions:
Russell... I hope everyone reads what you just posted... the new system will be mandated and CALPERS will be leveraging that money as well...they have already failed and now their buddies are going to give them more...would like to read those emails...lol.
Joe:
Will the Wreched Flashlight be reporting on the findings by this guest?
solutions:
lol
solutions:
the DISCOUNT rate used by CALPERS is the most significant culprit in this mess...but they won't talk about it...
solutions:
was that an attempt to give German dishes with a Japanese accent ? wow
solutions:
you don't know how much it is going to be....why does anyone think or say that ....amazing
solutions:
if you hear anyone say that you know what it is going to be....just smile at them as you know they don't know what they are talking about...you don't have to hear anything else
Russell:
Cadd has set the tone of the election . The ladies live in fanstasyland while Cadd is in realityville. Adam needs to line up with Cadd in order to win..
solutions:
they want to get out of office before it blows up.... let the next guy figure it out
solutions:
Julie will be in... way too many Bethel voters...
Joe:
while the City and County are bankrupt, the city is planning a new REU Building and the county is going to consider salary hikes for Sheriffs deputies and the DA Investigators
solutions:
lol...isn't it amazing..
solutions:
Moty is clueless... mortgage payment ? amazing
Joe:
Today 9AM County Board of Supervisors is considering raises (with associated unfunded liabilities)
solutions:
those raises will exacerbate the current problem... no way around that
Joe:
(Note: I think the Sheriffs deputies are underpaid)
solutions:
Joe...I agree with you...
solutions:
maybe we should turn RPD over to the Sheriffs dept... we could save money
Joe:
Change RPD to a private contractor?
solutions:
I know....maybe we should have a STUDY... say 250k will do it...then our city managers will get together and dsregard the study and come up with their own plan...but keep the title of the original plan....sounds familiar
solutions:
defined contribution plan is the ultimate answer
Russell:
The Feds use private security all the time. All costs are up front. Start with the support staff.
solutions:
and one of the reason they use private ...is cost...
solutions:
a decision that Eric still regrets... and loses sleep over
SYSTEM:
Please welcome onion_grower who just joined the chat.
onion_grower:
According to the Sacbee, 20% of Calpers pension checks go to out of state addresses. It is easy to count the 1099s. Calpers and Calstrs employees are smart enough to avoid the trainwreck.
solutions:
BUT the courts are allowing some adjustments to the promise in the levels of commitment
solutions:
and we haven't had a recession in 8 years.... its coming
Russell:
Cadd and Adam need to get together and propose a solution. A plan with details to deal with this mess without raising taxes.
solutions:
we owe it to our city employees to get i9n front of this...many have counted on this during retirement and not doing anything about it...is not the answer
onion_grower:
The democrats believe that the bailouts were a huge success. China will lend the money to the feds and the feds will bailout democrat states like CA.
solutions:
lol
solutions:
Trump will never go for it... he is a take the pain type of guy
onion_grower:
But, the democrats in Sacramento will bail out Eureka, Marysville, Oroville but not Republican voting Redding or REU.
ProducerBadBob:
http://reason.org/