Public Utilities Revenue Bond Oversight Committee

MINUTES

Monday, December 10, 2007
9:30 a.m. – 11:30 a.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 9:40 a.m. and roll call was taken. Present: Aimee Brown, Patrick Sweetland, Stan Jones, Kyle Rhorer, David Sutter and Brian Browne. Lisbet Sunshine was not present.

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 public comment.

At the request of Ms. Brown, Item 4 was taken was out of order

4. Discussion and possible action relating to Committee By-laws

Ms. Brown reviewed the suggested amendments to the RBOC Bylaws, specifically relating to Article I, Section 6 and Article V, Section 1. Ms. Brown stated that the bylaws were being amended to clarify the protocol as it hasn’t always been known in the past. Ms. Brown asked Committee members for feedback before possible adoption of the amendments. Mr. Browne stated that he would oppose a vote to adopt as he feels that the Mayor, Board of Supervisors or appointing body are aware of Committee member absences and should act accordingly. He stated that this responsibility to remove a Committee member at any time should not go to the RBOC Chair, as the Committee serves as a democracy. Mr. Browne stated that the appointing bodies should read the meeting minutes to track absences then, if they see fit, remove a Committee member. Mr. Ken Roux, Deputy City Attorney, explained that the amended Bylaws can only bind RBOC but cannot bind the Mayor, Board of Supervisors or another body. Mr. Sweetland clarified that he saw this amendment as addressing instances where a member has three unexcused or non-notified absences and gives the Chair protocol to follow. Ms. Brown noted that the intention behind the amendment is informational in that it states that the Chair can inform the appointing body and not act independently.
Moved by Mr. Sweetland, seconded by Mr. Jones to adopt the amendment Article 1 Section 6 to the RBOC bylaws; passed (Rhorer, Brown, Jones, and Sweetland). Opposed by Mr. Sutter and Mr. Browne. 

Ms. Brown explained that the amendment for Article V Section 1 addressed when and how Committee members are assigned to Subcommittees. Mr. Browne stated that the language indicates that the Chair can remove members if she feels they should be removed. Mr. Browne asked that the term “any time” be excised from the amendment. Ms Brown clarified that “at any time” refers to forming a subcommittee. Mr. Browne responded that he believes the phrase “at any time” carries over to the language to remove someone at any time as well. Mr. Browne stated that his understanding is that a Subcommittee can be refreshed every year, but it is not good policy to use the phrase “at any time” and suggested that the amendment be changed to read “every year”. He added that he believes that there is mal intent behind the amendment that he cannot prove.

Mr. Jones stated that if he was Chair he would like the authority to remove or appoint members of the subcommittee based on the needs of the subcommittee as he sees fit. In response to a question asked by Mr. Jones, Mr. Roux stated that it is normal procedure for a Chair to be given the authority to appoint or remove subcommittee members.

Mr. Browne moved to vote and then removed his motion. Mr. Jones moved, Mr. Rhorer seconded.

Mr. Sutter suggested that an additional amendment be added to ensure a more democratic process. He suggested that the Chair appoint a subcommittee chair and give the subcommittee chair the authority to appoint subcommittee members.

Mr. Browne stated that his objection is to the verbiage “the Chair may remove at any time a member from a subcommittee and appoint a replacement”.

Ms. Brown explained that the verbiage makes it explicitly clear that the Subcommittee appointments will be looked at on a yearly basis. In response to Ms. Brown’s explanation, Mr. Browne stated that in his opinion this amendment says that if he is out of town, the Chair can take him off the Subcommittee. He stated that he has lost respect for this Committee (Group).

Article II Section V; passed (Brown, Sweetland, Rhorer, Jones). Opposed by Mr. Sutter and Mr. Browne.
Mr. Sutter clarified that he felt his suggested amendment was not considered.

3. Report from Contracting Working Group subcommittee regarding recommendations for future work scope engagements.

Mr. Sweetland reported that Mr. Jones gathered information regarding overhead calculations from four San Francisco agencies: MTA, DPW MUNI, Recreation & Parks as well as EBMUD. He stated that Mr. Browne will gather the same type of information from San Diego, Orange County and the Urban Water Management Institute. Mr. Sweetland stated that the Subcommittee is waiting for confirmation from PUC staff on whether or not Parsons previously ran an overhead analysis. He clarified that because new bonds will not be refreshed until summer/fall ’08 the Committee must be mindful of budget for outside consultants. He indicated that although they have not identified an expected completion date of the report, they have determined that the work scope will be focused on FY 06-07.  Mr. Sweetland asked the Committee whether they should pursue a third contract knowing that there is approximately $75K left in their budget, and they subsequently decided to pursue a third contract regarding overhead, indirect costs calculations and financial risk analyses. Mr. Sweetland clarified that this analysis would run from the inception of WSIP to date, which he feels should take up no more than $20K of their current remaining budget. He concluded that the work scopes main intention would be to determine that the PUC’s procedures and guidelines for indirect costs are appropriate.

5.  Discussion and possible action relating to the Draft Annual Report

Ms. Brown asked Mr. Sweetland, as the Chair of the Working Contracting Group Subcommittee, to write up a paragraph regarding the Subcommittees activities for the Annual Report. She also asked Mr. Sutter to provide revisions relating to the Wastewater Working Group Subcommittee activities.

Mr. Sweetland suggested that meetings held with PUC executive management be added to the Annual Report.

The Committee discussed the logistics of getting the report out by the due date. It was decided that a more substantiated draft would be sent to staff. Staff will add remaining RBOC budget numbers and comments and send back to committee members along with the next meetings agenda package. Ms. Brown confirmed that she would like to have this available to vote on by the next meeting.

6. Discussion and possible action relating to 2008 RBOC meeting dates

Staff provided a list of 2008 meeting dates. Committee approved and staff will post for public viewing.
 
7. Discussion and possible action relating to local WSIP project site visit dates

Moved by Mr. Sweetland, seconded by Mr. Rhorer the project site visit date of February 15, 2008 was approved unanimously.

8. Discussion and possible action to approve the minutes of the meeting held on November 19, 2007

Moved by Mr. Sweetland, seconded by Mr. Rhorer to adopt the November 19, 2007 regular meeting minutes; passed (Brown, Sweetland, Rhorer, Jones, Sutter). Opposed by Mr. Browne

9. Discussion and possible action relating to RBOC members requests for information from SFPUC staff

Mr. Browne told staff that he had a question regarding Commercial Paper Program, stating that he would write the question out and send it to staff.

Ms. Brown asked staff about projects in R&R and what was spent to date.

Mr. Jones noted that he feels that the non responsiveness to his ongoing request for information from staff is ridiculous and left him extremely frustrated.

10. Discussion and possible action for future agenda items

Contracting report; election of officers; possible presentation by Carlos Jacobo or Finance staff; possible general WSIP overview presentation.

11. Adjournment
Ms. Brown adjourned the meeting at 10:50 a.m.