Public Utilities Revenue Bond Oversight Committee

MINUTES

Monday, May 1, 2006
9:30 am – 11:30 am
1155 Market Street (between 7 & 8th Streets) 4th Floor

Committee Members
Lisbet Sunshine, Chair
Aimee Brown, Vice-Chair
Brian Browne
Severin Campbell
David Sutter
Patrick Sweetland

1. Call to Order and Roll Call

   Chair Lisbet Sunshine called the meeting to order at 9:38 a.m. and roll call was taken.  RBOC members present were Aimee Brown, Brian Browne, Severin Campbell, Lisbet Sunshine. David Sutter and Patrick Sweetland

2. Public Comment - Members of the public may address the RBOC on matters that are within the RBOC’s jurisdiction and are not on today’s agenda

   No members of the public were present at that time.

3. Report from the Chair
   a. Update on RBOC position to be appointed by Controller

   Ms. Sunshine said that she spoke with Ed Harrington, Controller, and impressed upon him the importance of making an appointment to RBOC before the next regularly scheduled meeting.  Ms. Sunshine urged RBOC and staff to suggest candidates to Mr. Harrington.

4. Discussion and possible action to consider holding a RBOC public hearing.  This item was continued from the March 6, 2006 meeting.

   After some discussion, Ms. Brown made a motion to continue this item to a future meeting and Mr. Sutter seconded the motion.  All members voted in favor.

5. Discussion and possible action to approve the minutes of the January 30, 2006 meeting.  This item was continued from the March 6, 2006 meeting.

   Mr. Sweetland moved to approve the minutes of the January 30, 2006 meeting and Ms. Brown seconded the motion.  Ms. Sunshine, Ms. Brown, Ms. Campbell, Mr. Sutter and Mr. Sweetland voted in favor of the motion.  Mr. Browne abstained.

6. Discussion and possible action to approve the minutes of the March 6, 2006 meeting.

   Mr. Sweetland moved to approve the minutes of the March 6, 2006 meeting and Ms. Brown seconded the motion.  Ms. Sunshine, Ms. Brown, Mr. Sutter and Mr. Sweetland voted in favor of the motion.  Ms. Campbell and Mr. Browne abstained.

7. Discussion and possible action concerning presentation by Bob Kuo and Larry Doyle (“Financial Consultants”) regarding draft of their final report entitled “Review of Water System Improvement Program Expenditures Under PUC’s Commercial Paper Program”

   Mr. Kuo summarized the report in a power point presentation.  The full report dated as of April 25, 2006 and the power point presentation are attached and incorporated into these minutes. 

   Members asked Mr. Kuo for certain follow up information, including relating to:  the comparative cost of the commercial paper program; overhead expenses; charges by other departments to WSIP projects; timing for release of WSIP change control procedures.  It was agreed that members would forward their comments on the draft report to Ms. Ostberg no later than May 12, 2006 and that Mr. Kuo would produce another draft by the end of May to be considered at the Special Meeting scheduled by RBOC for June 12, 2006.

   This item was continued to the Special Meeting on June 12, 2006.

   Mr. Sweetland made a motion to approve the change in scope on Mr. Kuo’s contract to include analysis of commercial paper costs for not to exceed 15 hours of work and $2,850.  Mr. Browne seconded the motion and it passed unanimously.

8. Discussion and possible action about alternatives for contracting with a financial consultant to audit the PUC’s revenue bond and related expenditures upon expiration of existing contract on June 30, 2006 with Bob Kuo and Larry Doyle.

   This item was continued to a future meeting.

9. Discussion and possible action regarding RBOC information request policies and instituting a standing agenda item for consideration of questions and requests for information by RBOC members.  This item was continued from the March 6, 2006 meeting.

   This item was continued to a future meeting.

10. Discussion and possible action regarding proposed agenda(s) for next meeting(s)

    Members asked that the agenda for the Special Meeting on June 12, 2006 include the items continued from this meeting (items 7., 8., and 9.).  Ms. Sunshine asked for public comment.  Mr. Kalman expressed concern that WSIP costs were rising and wondered if the Board of Supervisors was properly monitoring costs.  Ms. Girardot asked (1) what the definition of project was in relation to the PEIR planning process, and added that she was concerned that Mr. Irons assumed that all repair projects would be exempted, and (2) how the reimbursement from wholesale customers for capital related costs worked.
     
    

11. Adjournment

    Mr. Sweetland moved to ajourn the meeting.  Ms. Brown seconded the motion.  All members were in favor.  Ms. Sunshine adjourned the meeting at 12:10 pm.