Public Utilities Revenue Bond Oversight Committee
Contracting Working Group

MINUTES

SPECIAL MEETING
Friday, September 7, 2007

2:00 p.m. – 3:30 p.m.
1155 Market Street (between 7 & 8th Streets) 4th Floor

1. Call to Order and Roll Call
 
Chair Patrick Sweetland called the meeting to order at 2:06 pm and roll call was taken. Present: Patrick Sweetland, Stan Jones, and Brian Browne.

2. Discussion and Possible Action Relating to RBOC Audit Prepared by Bob Kuo & Associates, Including Completion of Audit and Next Steps

Mr. Sweetland stated that the consultants report show that they have met the task as outlined and the Final Draft is due 9/11/07. Mr. Sweetland stated that there is nothing out of the ordinary in the working draft. The Contracting Working Group agreed that, assuming the report is complete and accepted, a letter transmittal will be created and sent to the Mayor and copy the Board of Supervisors and the Controller’s Office. At that point RBOC would schedule a formal presentation to the Commission. Mr. Jones requested that staff submit a formal response to RBOC before the Committee presents to the Commission or submits documentation to the Mayor, Board of Supervisors or the Controller’s Office. 

3. Discussion and Possible Action Relating to Future Contracting Options and Requirements for RBOC

Chair Sweetland explained that the Committee received information that Esther Reyes from the Controller’s Office will no longer handle RFP’s for Contracts. He asked Ms. Stacy Camillo, SFPUC, to discuss possible contracting options to the Contracting Working Group. Ms. Camillo stated that there is an option to have the SFPC procure an auditor through the usual contracting RFP. She added that appearance wise it’s not the best option to have the PUC pick an auditor directly. She suggested that it might be better if an impartial panel do the selection with the Controller’s Office overseeing the process. Ms. Camillo stated that as a second option is to go through a pool of contractors, which she believes is maintained through the Controller’s Office. Mr. Jones asked whether the decision to remove Esther Reyes from the procurement/contracting process came from Ed Harrington directly. He requested that SFPUC staff confirm whether her removal is a policy issue or a resource issue. Mr. Jones then asked staff to clarify where the pre-qualified pool of contractors list is maintained. To his knowledge DPW and the Airport maintain their own lists it’s of pre-qualified contractors. Mr. Jones would like this matter and the response agendized for the next meeting

Mr. Jones suggested that the SFPUC resource a Master Service Agreement maintained by the State, where pools are established and categorized. These lists include rates for each group level and are available to agencies throughout California. Ms. Camillo added that state approved consultants would still have to meet CCSF requirements.

Mr. Browne asked staff to find out how the taxi Commission facilitates their contracting as the SFPUC may be able to use their model as an option.

4. Discussion and Possible Action Relating to Work Scope of Future Contracts

Mr. Sweetland stated that Mr. Kuo’s first engagement was three projects and the moneys are due to run out by November 2nd. He stated that there are still concerns about projects moving out of WSIP and into R&R. Mr. Browne stated that the consultants looked at the Big 4, and the projects were not on time which he considers an area of risk. He asked if the projects were consistent with the authorizations, and if there were other areas of risk identified. Mr. Jones referenced an email from Steve Lawrence to GM Susan Leal, and asked if the consultants had identified improper expenditures related to overhead; if so, he believes PUC staff should investigate. Mr. Browne asked that the consultants review Art Jensen’s nine priority projects, as they are an issue that may come up in the next year. In conclusion, Mr. Sweetland stated that there needs to be further discussion regarding: WSIP projects moving into R&R, Completion timeframes, Improper expenditures, Rates as an economic resource and Overhead costs.

5. Discussion and Possible Action Relating to RBOC Members Requests for Information from SFPUC Staff

Mr. Browne requested the Systems Reliable Average. Staff notified Mr. Browne that Mary Hannaford is currently working on his historical data request.

Mr. Jones asked staff for clarification on the WSIP engineering resources. Specifically Mr. Jones would like to know if the engineering for WSIP is done in-house, with outside consultants or both, and how the work is being distributed between those resources.

Committee requested dates for project site visits.

6. Discussion and Possible Action Relating to Scheduling of Next Meeting

Mr. Sweetland suggested and the Contracting Working Group agreed that they would schedule the next meeting during or after the upcoming RBOC meeting.

7. Adjournment

With Mr. Jones’ motion and Mr. Browne’s second, Mr. Sweetland adjourned the meeting at 3:08