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May 03, 2001

Meeting Information

MINUTES

Subcommittee Meeting
Thursday, May 3, 2001 at 10:00 A.M.
City Hall, Room 263

Chairperson: Commissioner Eisenberg
Members: Commissioner McGoldrick

Clerk: Gregoire Hobson

SPECIAL AGENDA

(There will be public comment on each item)

1. Call to Order and Roll Call

The meeting was called to order by Chair Eisenberg at 10:10 a.m.

Members Present: Commissioners Eisenberg and McGoldrick

2. Discussion and adoption of the proposed scope of work for the Sphere of Influence Study and analysis associated with providing public power in the City and County of San Francisco, including the creation and maintenance of a Municipal Utility District for San Francisco and San Francisco-Brisbane

Gloria L. Young, Executive Officer, introduced the scope of work for the Sphere of Influence Study that is before the Subcommittee. At the last LAFCo meeting, the Subcommittee indicated that they wanted to review the scope of work and recommend any changes, modifications, and/or the approval of the document to SF LAFCo at its meeting of May 18. This is an informal setting for the Subcommittee to ask questions and for the Executive Officer to respond and also to get public comment on the actual scope of work.

Public Comment

Dana Dilworth, Resident of Brisbane, stated that the City of Brisbane has done a study with the intention of understanding what MUD will produce, but what was presented to the people was basically a civic lesson in public power. One of the series of facts that they used was reports from 1997-1998, which today would seem inaccurate because of the PG&E bankruptcy. Unless it is the desire of this LAFCo to have an understanding of all public power possibilities before us, it seems just the study of the Municipal Utility District should be done. Secondly, somebody with financial expertise should figure in how a bankruptcy fits into the information. She personally supports anybody who has been approved by APPA.

Bernie Choden, previous Commissioner, has comments that he read to LAFCo on his first reading of the proposed scope of work. He thinks the Sphere of influence can include other entities such as Brisbane, Alameda, and Berkeley and it should be less San Francisco centered when you address a study. His recommendation is to change the study’s title to include Brisbane and to possibly include Alameda and Berkeley, as other entities may be interested in joining. This is much too brief an outline. The consultants should have a more detailed scope of work.

Commissioner Eisenberg asked for the City Attorney’s input.

Dorji Roberts, City Attorney, stated that the scope of work for the Sphere of Influence Study does include Brisbane as stated on the last page, Item B1. The responses that the Commission receives from the potential consultants should address the possibility of Brisbane and San Francisco. Whether the scope should be broadened to include other entities such as Alameda and Berkeley is a policy decision for the Commission.

Bernie Choden, previous Commissioner, handed in a revised scope of work document for the Sphere of Influence Study outlining his comments and suggestions.

Commissioner Eisenberg asked the Executive Director to make changes to the title to say "LAFCo Sphere of Influence Analysis of San Francisco/Brisbane."

Gloria L. Young, Executive Officer, indicated that she did run the broad-brush of the scope of services past the APPA at the time staff drafted this scope of work. The scope of work responds to the Motion that was adopted by LAFCo in November, where it was specific to San Francisco. It includes the Municipal Utility District, including the Brisbane area. It includes some of the information that Mr. Choden spoke about. In addition, on April 23 and 24, the Executive Officer attended a two-day conference sponsored by APPA in San Francisco. The Executive Officer went through the study with the City Attorney’s Office and made sure that our broad-brush effort did in fact include an engineering and feasibility study that addresses some of the legal aspects associated with a Sphere of Influence Study that is looking at public power. LAFCo can amend the scope of work to include Mr. Choden’s comments.

Commissioner Eisenberg stated that he would send along Mr. Choden’s comments to the full Committee, but does not intend to change anything at this time.

Gloria L. Young, Executive Officer, advised that the Subcommittee will be issued a retyped copy with the changes italicized so they have it in advance of the next LAFCo meeting.

No further comments were made on the Sphere of Influence Study.

Public Hearing closed.

Commissioner Eisenberg reiterated that Gloria L. Young, Executive Officer, stated that this Sphere of Influence is a procedural guideline to a consultant. He has had input from other people stating their concerns as to what they think is going on. He has been told that the energy crisis could be solved if every home in the State of California were insulated. He believes that the Sphere of Influence does not specifically address residential or conservation measures.

Gloria L. Young, Executive Officer, stated that Item B1 addresses conservation efforts and that Supervisor Newsom introduced a resolution that requested that LAFCo include energy conservation efforts in its scope of work for the Sphere of Influence Study. The Executive Officer responded that conservation was included in the scope of work for the Sphere of Influence Study it was included.

Commissioner Eisenberg would like to add to Item B1 the words "and residential conservation measures." He stated that an intern from USF, who had done a survey of non-profits, found that the impact of increasing energy costs on non-profits was significant. Chair Eisenberg went to the University of Oregon in Eugene. He spoke on deregulation and had an opportunity to talk to the head of the Municipal Utility District in Eugene. Eugene and a lot of Oregon have public power, and they love it. But the head of the Eugene Municipal Utility District said that they were doing a survey of schools and found that one of the impacts on schools is that they are laying-off employees because of their electric bills. He doesn’t know where in the scope of work the impact on public and social services is specified.

Gloria L. Young, Executive Officer, stated that she was not sure if this issue was specifically outlined in the scope of work.

Commissioner Eisenberg stated that he would like to add this issue to wherever the Executive Officer thinks it is appropriate. He would like the consultant to specifically look into specifically the impact of public power options on public, educational, and non-profit social services.

Public Comment Reopened.

Bernie Choden, previous Commissioner, stated that the City does have an official Conservation Policy produced by Lois Scott about twenty years ago. It has been adopted and ignored. It has analysis regarding insulation, conservation, and what should be done that hasn’t been done. There is also a Women’s Energy Association, headed by Barbara Barkovich, an advisor on energy to United Kingdom and France.

Public Comment Closed.

Commissioner McGoldrick stated that we should look into the collateral consequences of public power options. We should understand what is going on now and what we hope will happen if we embark upon the public purchase of PG&E. He thinks we are covered under Roman Numeral II that lists the seven important aspects that should be addressed by the study. He is satisfied and wants to make sure we include the anecdotal situations and quantify them. What effect will all this have on the local economy, people, and the City? He hopes that potential consultants would look at these issues. He would be happy to do a more detailed scope that looks at detailed socioeconomic factors.

Commissioner Eisenberg stated that we should add a next number and a next Roman Numeral that the consultant analyzes the effect of the PG&E bankruptcy. We need to look at their failure to pay $3,000,000 in property tax. That should be part of the Sphere of Influence Study. The second item should look at both the franchise agreement and the Wheeling Agreement and their present status in the PG&E bankruptcy. The third item should be that the study should also review the status of the Raker Act. The fourth item should be the City is now losing $20,000,000 a year because of the Turlock and Modesto contracts. He wants to make sure these areas are covered specifically and asks that the consultant specifically address these areas.

Chair Eisenberg Moved that the scope of work for the Sphere of Influence Analysis as provided to LAFCo by the Executive Officer, and amended as previously stated, shall be forwarded with a PASS recommendation to the Commission. Commissioner McGoldrick Seconded.

Vote:

Commissioner Goldrick: AYE

Commissioner Eisenberg AYE

Motion: Passed to the Commission

3. Discussion and approval of the process for selecting and contracting with the consultant(s) for the Sphere of Influence Study.

Gloria L. Young, Executive Officer, read the recommendations for selecting and contracting with the Consultant for the Sphere of Influence Study. She indicated that consultants in the area have contacted our office and attached to her memorandum is a list of potential consultants. We would notify the public by advertising in the newspaper, posting on our web site, and outreach advertising. In addition, we would post in Brisbane to make sure we have an inclusive list of consultants, should the Commission decide to approve this process. At this time, It is before the Subcommittee for consideration.

Commissioner Eisenberg asked if this recommendation was drafted with the City Attorney’s cooperation and participation.

Gloria L. Young, Executive Officer, stated that she drafted the proposal and that Paula Jesson, Deputy City Attorney, did review it.

Chair Eisenberg asked if this procedure is consistent with state law and permissible?

Dorji Roberts, City Attorney, stated that he has no knowledge that it is improper and stated that if there had been a problem, Paula Jesson, Deputy City Attorney, would have brought it to the Executive Officer’s attention at that time. He has no problem with the procedure.

Chair Eisenberg asked if there are City or State provisions that the consultant will have to comply with.

Dorji Roberts, City Attorney stated that he does not believe so, but there may be disclosures required under the Conflict of Interest laws.

Chair Eisenberg asked for the process of selection of a consultant.

Dorji Roberts, City Attorney, stated that it would be the action of the full Commission to decide which consultant to select.

Chair Eisenberg asked whether it would be unusual for the full Commission to interview people as opposed to the Subcommittee?

Dorji Roberts, City Attorney, stated that selection could be done in a number of ways. Sometimes it is done through the Subcommittee, through a separate selection or evaluation panel, or an individual member that is appointed to work with the Executive Officer to review the proposals. The Commission has broad discretion as to how they wish to handle the evaluation process.

Chair Eisenberg asked whether it is the Executive Officer’s job to recommend someone to LAFCo?

Dorji Roberts, City Attorney stated that the Commission could ask the Executive Officer to do so. The Commission has the discretion to set up a different process.

Chair Eisenberg stated that he prefers that the Executive Officer provide LAFCo with a list of the potential consultants and that the Subcommittee make the recommendation instead of the Executive Officer.

Supervisor McGoldrick stated the procedure he has most commonly seen throughout the City of San Francisco has been that the staff would provide recommendations. We could ask the staff to provide one, two or three recommendations and the Subcommittee would then provide input that would be forwarded to the full Commission in the form of a recommendation that might narrow down the multiple recommendations to one or more.

Chair Eisenberg asked the Executive Officer to provide LAFCo with evaluations as to whether the consultant complies with the various criteria, and the recommendation will come from the Subcommittee.

Gloria L. Young, Executive Officer, concurred.

Commissioner McGoldrick asked if the criteria for choosing from a list of potential consultants would include an evaluation of their depth of experience or is there a qualification process?

Gloria L. Young, Executive Officer, stated she would have all of the consultants that submitted an RFP or an informal proposal for this project provide a checklist of consistencies with not only the scope of study, but the amount (price) they recommend, and if that meets our needs.

Public Comment:

No public comment.

Commissioner Eisenberg moved that the proposal set forth as Item 3 and the procedures set forth in the Executive Officer’s proposal be recommended to the Commission for passage, with the exception that it should be reworded to show that the procedure will be that the Executive Director shall evaluate the consultants in compliance with APPA and other relevant criteria. The Executive Officer will present that evaluation to the Subcommittee, which will make its recommendation for final decision by the Commission.

Commissioner McGoldrick Seconded.

Vote:

Commissioner McGoldrick: AYE

Commissioner Eisenberg: AYE

PASSED

4. Future Agenda Items

Gloria L. Young, Executive Officer, stated that unless the Subcommittee wishes to meet again, there are no other agenda items before the Subcommittee until after the Commission approves the scope of study and then another Subcommittee Meeting will be set up at that time.

Public Comment

No Public Comment.

5. Public Comment on Items not on the Agenda

Chair Eisenberg stated that the chair of this Commission next Wednesday is going to announce his candidacy for the position of City Attorney. It is his present opinion that there is no conflict of interest if he remains the Chair of LAFCo. He also believes that there are consistent opinions from the City Attorney’s Office that there is no conflict of interest for a Chair of a Commission to run for public office consistent with first amendment rights and other considerations. He would ask if well before May 18, that the City Attorney’s Office provide him with an opinion if there is a conflict of interest. If the City Attorney is of the opinion that there is a conflict of interest or appearance of impropriety, he will resign.

Dorji Roberts, City Attorney, stated that he would ask the City Attorney’s Ethics experts to look into this matter and will reply to Chairman Eisenberg.

6. Adjournment: Time 11:00 a.m.


Last updated: 8/18/2009 1:54:51 PM