Public Utilities Revenue Bond Oversight Committee
Contracting Working Group

MINUTES
SPECIAL MEETING

Tuesday, April 18, 2006
1:30 p.m. – 2:30 p.m.
1155 Market Street (between 7 & 8th Streets) 4th Floor
San Francisco, CA  94103

1. Call To Order and Roll Call
   
   Chair Aimee Brown called the meeting to order at 1:35 p.m. and roll call was taken. Present were Aimee Brown and Patrick Sweetland.  Brian Browne was absent. 
2. 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” 
   
   Ms. Brown expressed concern that the current schedule didn’t permit RBOC’s full membership the opportunity to review the report prior to being asked to approve it.  Mr. Sweetland agreed and suggested that a special meeting be called after the May 1, 2006 meeting with the express purpose of approving the report, and that members be given an opportunity to review and make comments prior to that meeting. 

   Mr. Kuo proceeded to walk through the report (which is included as part of these minutes by reference) chapter by chapter.  At Ms. Brown and Mr. Sweetland’s questions, it was agreed that Mr. Kuo would follow up on certain items, including:  actual CP expenditures, charging other departments work to projects, cost benefit analysis of CP vs bonds, overhead costs, project change control processes, pre-CIP sources of funds, reconciliation between FAMIS and Primavera.

   Ms. Brown invited public comment.  Mr. Steve Lawrence questioned the $201 million for the recycled water project given the relatively small yield of 4.1 mgd it was expected to generate.  He wondered if the RBOC would consider making a recommendation to review this project and/or to stop the sale of bonds.  Mr. Kalman made several criticisms about the way the City and the PUC manage capital projects.  

3. Discussion and Possible Action About Financial Consultant Contract Alternatives Upon Expiration of Existing Contract On June 30, 2006. 
   

   It was generally agreed that this item be continued.

4. General Public Comment.
   
   Ms. Brown invited public comment.  There was none.

5. Adjournment
   
   Ms. Brown adjourned the meeting at 3:15 pm.