Wednesday, February 23, 2011
WHY WON'T TRIMET UPHOLD IT'S RESPONSIBILITIES AND ALLOW THE PUBLIC TO SEE WHAT GOES ON?
It's pretty sad when a minor blogger like me has to provide the public with a way to watch the Trimet board proceedings. This is a responsibility of Trimet!
SEATTLE can do it, why can't Portland?
SEATTLE can do it, why can't Portland?
Some of the trickery going on here at Trimet capital projects
b) 1997 and 1998 Lease transactions
During fiscal years 1997 and 1998, the District entered into sale-leaseback transactions for 31 light rail vehicles with
a foreign investor. Additionally, in fiscal years 1997 and 1998, the District entered into a series of lease-leaseback
transactions with domestic investors for the same 31 light rail vehicles, plus an additional 41 light rail vehicles and
two rail maintenance facilities.
Equipment sales to the foreign investor resulted in original proceeds to the District of $80,600. The investor leased
all assets back to the District for a period of 18 years. The leases qualify for accounting treatment as operating
leases. Using the proceeds of the sales, the District fully funded payment agreements with American International
Group, Inc. (AIG) totaling $65,849. Under the payment agreements, AIG is obligated to make all required lease
payments. The prepayments by the District to AIG are recorded as prepaid lease expense in the accompanying
balance sheets and are expensed over the term of the lease. The payment agreements do not constitute legal
defeasance. Thus, if AIG fails to fulfill its contractual obligation to make future lease payments, the District will be
required to meet all financial obligations required under the lease transaction.
Under the foreign sale-leaseback agreement, the foreign investor has a put option which requires the District to buy
back the leased equipment if exercised. If the investor does not exercise the put option, the District may offer to
buy the equipment pursuant to the terms of the lease agreement and the lessor shall accept such offer. The District
also deposited $11,995 with AIG, which represents the present value of the options at the buy back dates. These
deposits earn interest at rates ranging from 5.3 percent to 5.9 percent and are recorded as long-term restricted
lease deposits on the District’s balance sheets. The interest earned on the restricted deposits is recorded as a
component of net leveraged lease expense on the statements of revenues, expenses and changes in net assets.
The arrangement discussed in this paragraph does not constitute legal defeasance. Thus, if AIG fails to fulfill its
contractual obligation to fund TriMet’s buy back of the vehicles, the District will be required to complete the buy
back with other funds.
In simultaneous transactions, the District leased its leasehold interest (the Head Leases) in the equipment to
domestic third party investors (the Leasehold Investors) under the 1998 and 1997 leasehold agreements for a
period of 36 and 30 years, respectively. The Head Leases qualify for accounting treatment as operating leases.
The Leasehold Investors prepaid all required lease payments totaling $175,849, which have been recorded as
unearned lease revenue on the accompanying balance sheets. The unearned revenue is recognized over the
terms of the leases.
The 1998 and 1997 Leasehold Investors sublet all assets back to the District for a period of 18 and 15 years,
respectively. The subleases also qualify as operating leases. TriMet used the proceeds of the lease transactions
to fully fund payment agreements with AIG totaling $130,562. Under the terms of the payment agreements, AIG is
required to make all sublease payments. The prepayments are recorded as prepaid lease expenses in the
accompanying balance sheets and are expensed over the terms of the leases.
In addition, the District deposited the present value of the Head Lease purchase options with AIG. The deposits
accrete interest at rates ranging from 5.8 percent to 7.1 percent and are recorded as restricted lease deposits on
the District’s balance sheets. The payment agreements and the funding of the purchase option price do not
constitute legal defeasance. Thus, if AIG fails to fulfill its contractual obligation to make future payments, the
District will be required to meet all financial obligations required under the lease transaction.
The operative documents of the 1997 and 1998 transactions were reviewed and approved by the U.S. Department
of Transportation acting through the Federal Transit Administration. In exchange for its participation in the
transactions discussed above, the District received net cash proceeds of $15,953, which were recorded as
unearned revenue and are amortized over the lease terms.
In the event AIG’s ratings are downgraded by Standard & Poors below “AA” or by Moody’s below “Aa3”, AIG is
required to pledge collateral equal to the present value of AIG’s future obligations under those agreements. In
September 2008, AIG was downgraded to A- by Standard & Poors and A2 by Moody’s, thus triggering the collateral
requirement. By November 2008, AIG had met all collateralization requirements. As of June 30, 2010 and 2009, a
third party custodian is holding securities with a market value of $40,278 and $37,411, respectively, in satisfaction
of AIG’s collateralization requirements. In addition, TriMet was required to replace three standby letters of credit
issued by AIG. In lieu of replacing the letters of credit, and with consent of the equity investors, TriMet pledged
supplemental collateral held by a third party totaling $600, which is recorded as a restricted investment on the
Balance Sheet.
As of June 30, 2010, TriMet is not aware of any default, event of default or event of loss under any of the operative
documents.
In February 2009, TriMet negotiated an early termination of four of the United States lease-leaseback transactions.
These early terminations resulted in liquidation of $20,691 in prepaid lease expenses, $32,114 in long term lease
deposits, and $58,732 in unearned lease revenue. Net of transaction expenses, the 2009 early terminations
created $5,374 in gains recorded as special items within the Statement of Revenues, Expenses and Changes in
Net Assets.
During fiscal years 1997 and 1998, the District entered into sale-leaseback transactions for 31 light rail vehicles with
a foreign investor. Additionally, in fiscal years 1997 and 1998, the District entered into a series of lease-leaseback
transactions with domestic investors for the same 31 light rail vehicles, plus an additional 41 light rail vehicles and
two rail maintenance facilities.
Equipment sales to the foreign investor resulted in original proceeds to the District of $80,600. The investor leased
all assets back to the District for a period of 18 years. The leases qualify for accounting treatment as operating
leases. Using the proceeds of the sales, the District fully funded payment agreements with American International
Group, Inc. (AIG) totaling $65,849. Under the payment agreements, AIG is obligated to make all required lease
payments. The prepayments by the District to AIG are recorded as prepaid lease expense in the accompanying
balance sheets and are expensed over the term of the lease. The payment agreements do not constitute legal
defeasance. Thus, if AIG fails to fulfill its contractual obligation to make future lease payments, the District will be
required to meet all financial obligations required under the lease transaction.
Under the foreign sale-leaseback agreement, the foreign investor has a put option which requires the District to buy
back the leased equipment if exercised. If the investor does not exercise the put option, the District may offer to
buy the equipment pursuant to the terms of the lease agreement and the lessor shall accept such offer. The District
also deposited $11,995 with AIG, which represents the present value of the options at the buy back dates. These
deposits earn interest at rates ranging from 5.3 percent to 5.9 percent and are recorded as long-term restricted
lease deposits on the District’s balance sheets. The interest earned on the restricted deposits is recorded as a
component of net leveraged lease expense on the statements of revenues, expenses and changes in net assets.
The arrangement discussed in this paragraph does not constitute legal defeasance. Thus, if AIG fails to fulfill its
contractual obligation to fund TriMet’s buy back of the vehicles, the District will be required to complete the buy
back with other funds.
In simultaneous transactions, the District leased its leasehold interest (the Head Leases) in the equipment to
domestic third party investors (the Leasehold Investors) under the 1998 and 1997 leasehold agreements for a
period of 36 and 30 years, respectively. The Head Leases qualify for accounting treatment as operating leases.
The Leasehold Investors prepaid all required lease payments totaling $175,849, which have been recorded as
unearned lease revenue on the accompanying balance sheets. The unearned revenue is recognized over the
terms of the leases.
The 1998 and 1997 Leasehold Investors sublet all assets back to the District for a period of 18 and 15 years,
respectively. The subleases also qualify as operating leases. TriMet used the proceeds of the lease transactions
to fully fund payment agreements with AIG totaling $130,562. Under the terms of the payment agreements, AIG is
required to make all sublease payments. The prepayments are recorded as prepaid lease expenses in the
accompanying balance sheets and are expensed over the terms of the leases.
In addition, the District deposited the present value of the Head Lease purchase options with AIG. The deposits
accrete interest at rates ranging from 5.8 percent to 7.1 percent and are recorded as restricted lease deposits on
the District’s balance sheets. The payment agreements and the funding of the purchase option price do not
constitute legal defeasance. Thus, if AIG fails to fulfill its contractual obligation to make future payments, the
District will be required to meet all financial obligations required under the lease transaction.
The operative documents of the 1997 and 1998 transactions were reviewed and approved by the U.S. Department
of Transportation acting through the Federal Transit Administration. In exchange for its participation in the
transactions discussed above, the District received net cash proceeds of $15,953, which were recorded as
unearned revenue and are amortized over the lease terms.
In the event AIG’s ratings are downgraded by Standard & Poors below “AA” or by Moody’s below “Aa3”, AIG is
required to pledge collateral equal to the present value of AIG’s future obligations under those agreements. In
September 2008, AIG was downgraded to A- by Standard & Poors and A2 by Moody’s, thus triggering the collateral
requirement. By November 2008, AIG had met all collateralization requirements. As of June 30, 2010 and 2009, a
third party custodian is holding securities with a market value of $40,278 and $37,411, respectively, in satisfaction
of AIG’s collateralization requirements. In addition, TriMet was required to replace three standby letters of credit
issued by AIG. In lieu of replacing the letters of credit, and with consent of the equity investors, TriMet pledged
supplemental collateral held by a third party totaling $600, which is recorded as a restricted investment on the
Balance Sheet.
As of June 30, 2010, TriMet is not aware of any default, event of default or event of loss under any of the operative
documents.
In February 2009, TriMet negotiated an early termination of four of the United States lease-leaseback transactions.
These early terminations resulted in liquidation of $20,691 in prepaid lease expenses, $32,114 in long term lease
deposits, and $58,732 in unearned lease revenue. Net of transaction expenses, the 2009 early terminations
created $5,374 in gains recorded as special items within the Statement of Revenues, Expenses and Changes in
Net Assets.
I would sure like to see the breakdown on this
About stimulus funds
TriMet was awarded $53.7 million in federal stimulus funds to be used to fix failing infrastructure, make the transit system more robust and put Oregonians to work. It’s estimated that federal stimulus dollars funded approximately 181,895 job hours with a payroll of $9.85 million as of January 31, 2011.ANOTHER NON-EVENT
Light Rain Snow Fog/Mist
Wind : Northwest at 8.1 MPH (7 KT)
Humidity : 93 %
Pressure : 1012.3 mb
Weather Forecast
Wednesday, February 23rd- 4:30pm
So we are all playing the waiting game. Waiting for the cold air and snow to reach the valley floor. Most of the day has been a mix of rain, snow and sun breaks. Later tonight that will change as colder air arrives across the region. Once the cold air arrives the rain snow mix will turn to all snow.
I think the cold air arrives between 10pm and midnight. I have down graded the amount of snow we're going to be to between 1" to 2" on the valley floor and up to 3" in the higher elevations. Snow showers will decrease late Thursday.Even though the snow tapers off the cold air will be sticking around.This weekend overnight lows will plunge into the teens. New records can be expected Friday night and Saturday.
Tonight's low 32
Thursday's high 36
Wind : Northwest at 8.1 MPH (7 KT)
Humidity : 93 %
Pressure : 1012.3 mb
Weather Forecast
Wednesday, February 23rd- 4:30pm
So we are all playing the waiting game. Waiting for the cold air and snow to reach the valley floor. Most of the day has been a mix of rain, snow and sun breaks. Later tonight that will change as colder air arrives across the region. Once the cold air arrives the rain snow mix will turn to all snow.
I think the cold air arrives between 10pm and midnight. I have down graded the amount of snow we're going to be to between 1" to 2" on the valley floor and up to 3" in the higher elevations. Snow showers will decrease late Thursday.Even though the snow tapers off the cold air will be sticking around.This weekend overnight lows will plunge into the teens. New records can be expected Friday night and Saturday.
Tonight's low 32
Thursday's high 36
NO DISCOURAGING DAVID SALE OR DARLA STURDY
I think they should have made David Sale the new safety director!
Democracy in action
German federal election, March 1933
The moral of the story-people can be easily fooled to vote against themselves.
I MISSED TODAY'S BOARD MEETING
I was planning on attending today’s board meeting and speaking myself but unfortunately I was not feeling very well.
I also will be arranging a meeting with Trimet’s current Director of Transportation to discuss my disciplinary letter in an open and free atmosphere so I want to see how that turns out before I take any further action on this issue.
I’m hoping of course that I can convince Hayden of my arguments against the wording of the letter and have a change made to official policy before I am to be warned in cases such as this.
I have never said that management does not have the right to regulate my behavior, but I have to know the rules of the game and those rules have to be clear and concise, not vague and broad.
REGARDING THAT WOMAN WHO HAS SOME MENTAL ISSUES AND WRITES A SLANDER BLOG ABOUT ME
From her Jim Stenger copy cat slander blog:
If I hadn't gone to the meeting then I would have never known
that my name and activites were a central part of Ellen's case
against Khris Alexander.
YOUR DAMN RIGHT I PUBLISHED THEM, AND WOULD DO IT AGAIN.
At the request of President Hunt, I removed them.
But to this day one of the main problems I have with our union is if
you don't go to the meeting you do not get to know anything that went on.
And that includes your own name being dragged through the mud!
The names of those that signed his petition were given to him and he did retaliate against as many members as he could (including me) until he got caught. All of the paperwork was at the Union meeting. IT WAS ANNOUNCED THE DOCUMENTS WERE PRIVATE AND TO STAY IN THE MEETING. Our co-worker (Ranting's) took everything home with him, published it on his site and then created and published fourteen (14) inflammatory, slanderous You Tubes about me because he saw my name on the re-call petition. Cyber Bully/Stalker's try to CONTROL one's activities by acting out online.
Most of that statement is bullshit of course, cause she writes and thinks bullshit. However, when I showed up at MY VERY FIRST UNION MEETING, it was in the case of Khris Alexander. I had never been to a union meeting before that time.
And when I reviewed the documents against Khris, to my shock
I found MY NAME ALL OVER THEM!
Nobody had bothered to tell me before hand that my name was
in a prominent position in this case.
I found MY NAME ALL OVER THEM!
Nobody had bothered to tell me before hand that my name was
in a prominent position in this case.
If I hadn't gone to the meeting then I would have never known
that my name and activites were a central part of Ellen's case
against Khris Alexander.
YOUR DAMN RIGHT I PUBLISHED THEM, AND WOULD DO IT AGAIN.
At the request of President Hunt, I removed them.
But to this day one of the main problems I have with our union is if
you don't go to the meeting you do not get to know anything that went on.
And that includes your own name being dragged through the mud!
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