Meeting Information
SAN FRANCISCO LOCAL AGENCY FORMATION COMMISSION (LAFCo)
M I N U T E S
Special Meeting
Tuesday, November 28, 2000, 3:00 p.m.
City Hall, Room 263
Chairperson: Commissioner Eisenberg
Members: Commissioners Ammiano, Bierman, Yaki, Choden
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 Chairperson Eisenberg at 3:02 p.m.
Commissioners Ammiano, Bierman, Eisenberg and Choden were present. Commissoiner Kaufman was present as the alternate for Commissioner Yaki, who was not present.
1. Adoption of Policies and Guidelines for Processing Petitions for the Formation of Special Districts (G. C. Section 56301)
Angela Alioto Esq., Attorney for SF CLUB’s Proposed Rules Pertaining to the Formation of a Municipal Utility District
Ms. Alioto stated that the request of her clients is that LAFCo follow the rules set out in the Municipal Utility District Act Chapters 1 and 2 as outlined in her letter dated November 16. 2000. The most important is Number 3 which states: In the event of receipt of a petition to form a MUD, the executive director of the LAFCo shall forward the petition to the applicable of Supervisors with instructions to immediately follow the procedures set forth in Chapter 1 and 2 of the Municipal Utility District Act. She further stated that the Commission should adopt the rules mentioned in her letter.
Chairperson Eisenberg opened the item for public comment.
There was no public comment on this item.
Chairperson Eisenberg closed the public comment
Commissioner Kaufman stated she was troubled by the proposal to bypass the application process and review that’s required by LAFCo. Looking at the decision in the Superior Court lawsuit, the petition to do this was denied. Commissioner Kaufman stated that the Cortese-Knox Act governs the formation of all Local Agency Formation Commissions to approve or disapprove the formation of a MUD. There are no provisions of the MUD Act that exempts the formation of a utility district from the operation of the Cortese-Knox Act. So to try and bypass this seems to totalling inapproriate and not legal. The trial court said you cannot do it this way.
Chairperson Eisenberg stated that the court decision that Commissioner Kaufman referred to was not agreed to by all members of the Board of Supervisors. There were Supervisors who in fact disagreed with it. That decision is now on appeal. Most important was that LAFCo was not a party to the lawsuit and the Chairperson does not believe LAFCo is bound by the Court’s decision.
Chairperson Eisenberg moved to adopt the proposed rules as submitted by Ms. Alioto. The motion was seconded by Commisioner Ammiano.
Before the Commission acted on the motion, Commissioner Choden stated that the first stage involves MUD which is basically a shell with permission to provide an application. That application is not here. Commissioner Choden stated that formation of a MUD is urgent and must provide options for low cost power and increased availability of power.
Commissioner Kaufman stated that the Finance Committee has before it a request for $754,000 and the money is to be used for the environmental and other reviews related to the MUD petition, but that no process for reviewing the MUD has be set up. Asking for $754,000 for a LAFCo review, which the Commission is being asked to bypass, is improper and the MUD proponents cannot have it both ways.
Chairperson Eisenberg requested that the Commission return to the motion to adopt the proposed rules as submitted by Angela Alioto. The prposed rules set forth in Ms. Alioto’s letter dated November 16, 2000, were stated as follows: (1) The general provisions of Cortese-Know pertaining to district formation do not apply to the formation of a MUD because the law deling with MUD’s contains it’s own more specific procedures: a routine formation procedure pursuant to Chapter 2, Public Utilities Code 11561 et. Seq. (2) Cortese-Knox co-exists with the statutory scheme for MUD’s, which specifically addresses the formation of municipal utilities district. (3) In the event of receipt of a petition to form a MUD, the executive director of the LAFCo shall forward the petition to the applicable Board of Supervisors with instructions to immediately follow the procedures set forth in Chapters 1 and 2 of the Municipal Utility District Act.
Chairperson Eisenberg requested a roll call vote.
Commissioners Choden, Bierman, Ammiano and Eisenberg voted aye.
Commissioner Kaufman voted no.
The motion was adopted.
Chairperson Eisenberg instructed the Executive Officer, Gloria L. Young, that the ruling of Commission at this time is to transmit the motion to the Board of Supervisors tomorrow.
Gloria L. Young, Executive Officer stated that she would not here tomorrow and that Commission Clerk Gregoire Hobson would submit the motion to the Board of Supervisors.
Gloria L. Young, Executive Officer stated that it was her understanding that by adopting the proposed rules by Ms. Alioto, that her policies and guidelines placed before the Commission are not the ones the Commission plans to adopt.
Chairperson Eisenberg responded that he thinks the matter should be opened for discussion by the Commission, but that it was his understanding that those rules could be revised to be in sync with the motion just passed and doesn’t think it was the intention of the Commission to reject those rules. The passage of the first rule might require some revision to make them compatible and doesn’t believe the rules the Executive Officer proposed were rejected.
Gloria L. Young stated she believes that Ms. Alioto’s recommendation that the Commission approved, in effect, moves the MUD petition to the Board of Supervisors. The proposal she placed before the Commission was in concert with what occurs in other LAFCos around the state. There is a process, and that the petition in effect substitutes for the resolution of the legislative body. Should the proceedures and guidelines she submitted go on parallel track?
Chairperson Eisenberg responded that the Executive Officer’s proposed procedures and guidelines may be applicable to the formation of some districts, but may not be applicable to other districts. It was the intention of the Chair that this Commission create a Committee to discuss the Executive Officer’s rules and report back at the next meeting as to how to harmonize the proposed rules with the Commission’s adoption of the rules submitted by Angela Alioto. Chairperson Eisenberg thinks the Executive Officer has done a wonderful job in preparing the rules. Ms. Alioto rules only spoke to MUD and the Executive Officer’s rules spoke to all districts.
Gloria L. Young stated she was willing to work on whatever proposal was put forward. She also informed the Commission that the December 5th meeting is not possible because at the end of the meeting last week there were not enough days, to publish notice for a December 5th meeting. The next meeting of LAFCo would be December 12th. Should you appoint a subcommittee they could meet before December 12th.
Chairperson Eisenberg moved to not adopt the procedures and guideline submitted by the Executive Officer, but to create a subcommittee to review them and return recommendations to the Commission on December 12th. The motion was seconded by Commissioner Bierman.
Before the Commission acted on the motion, Ms. Alioto inquired whether the rule she submitted that was just adopted by the Commission meant that the MUD petition will move forwarded today and not be held up by any subcommittee that’s discussing the rules submitted by the Executive Officer.
Chairperson Eisenberg stated that the motion was for the rules proposed by the Executive Officer to be continued to the next regular meeting and the Chair will appoint a subcommittee to harmonize the rules submitted by the Executive Officer and the rules particular to the MUD.
Commissioner Choden stated he would be willing to be on the on the committee.
Chairperson Eisenberg stated he will also be on the committee, and that the committee would report at the next regular meeting. The motion, as restated by the Chairperson, was seconded by Commissioner Bierman. The motion was adopted without objection.
2. Public Hearing for review, discussion and action on the disposition of the petitions in support of the formation of a Municipal Utility District with the same exterior boundaries as the City and County of San Francisco and the City of Brisbane
Chairperson Neil Eisenberg - Resolution regarding LAFCo and MUD
Chairperson Eisenberg stated he has a substitute motion after further review of the resolution and discussion with City Attorney. It appears that the resolution is really a request for administrative action which would normally be taken by staff pursuant to the Commission’s statutory authority. He stated that the item will be opened for public comment, but informed the public that it is the intention of the Chair to withdraw the resolution and direct staff to take administrative action as follows: The Commission, through the Chair, directs the Executive Officer to prepare a proposed scope of work and draft budget for a Sphere of Influence Study for the provision of electric power. The sphere study should address alternatives for power generation, supply and transmission options for institutional and regulatory forms of controlling these assets including public ownership and any other issue relevant to abating the high electric rates currently paid by San Francisco ratepayers and avoiding future rate increases.
Chairperson Eisenberg opened the item for public comment.
Joel Ventressca, Co-Chair, Coalition for Lower Utility Bills, stated he has no objection to the proposal. Regarding the disposition of the petitions that 24,000 people in San Francisco and Brisbane signed the petition, Mr. Ventresca asked the Commission to please review and approve without change the petition and direct the Board of Supervisors to call an election on this question. Let the people decide.
Don Eichenberg, San Francisco Green Party, stated we need to pay attention to those petition signatures and put it on the ballot.
Willie Radcliff stated that residents in Bayview being harmed by PG&E and has lived in a city that had local power and it works better.
Bruce Brugman, Editor of the Bay Guardian stated the reason involved in this issue is that he does not think democracy can work in City and County of San Francisco, the Bay Area, the State of California, the United States of America if the kind of scandal that is represented here by this issue is allowed to continue.
Richard Ow stated he was afraid of rate increases.
Caroline Nee stated she was representing San Francisco and Brisbane voters against rate increase and urged Commission to put the petition on the ballot.
E.J. Simpson stated deregulation has not worked. San Francisco and Brisbane must form a MUD and look for public power because rates are going up.
Doug Comstock stated he wanted to thank the Commission for the action taken today.
Ernestine Weiss stated the people of this are state tried of paying for beyond what they can afford for power and deregulation has not worked.
Chairperson Eisenberg closed the public comment.
Commissioner Choden stated that we must keep our options open and set up a shell organization which would have the purview of preparing an application to LAFCo. After the application has been received the LAFCo would then again be involved in looking for alternative energy sources.
Commissioner Kaufman inquired from the Deputy City Attorney for clarification on the proposal made by Chairperson Eisenberg. The Commission just adopted a motion asking the Board of Supervisors to put something on the ballot, and she doesn’t know what the current proposal is about.
Dorji Roberts, Deputy City Attorney, stated that direction of Chair to Executive Officer, Gloria L. Young, was to prepare a scope of work so that the Commission could prepare a Sphere of Influence Study. These are plans for services like electricity, water, solid waste and other things and how these services would be provided to a given area. They would look at how services would be provided, how they would be financed and related issues. LAFCo does have authority under the Cortese-Knox to have its staff and hire outside consultants develop a Sphere of Influence Study.
Chairperson Eisenberg asked for unanimous consent on the motion that the Commission, through the Chair, directs the Executive Officer to prepare a proposed scope of work and draft budget for a Sphere of Influence Study for the provision of electric power. The sphere study should address alternatives for power generation supply and transmission options, for institutional and regulatory forms of controlling these assets including public ownership, and any other issues relevant to abating the high electric rates currently paid by San Francisco ratepayers and avoiding future rate increases.
The motion was adopted without objection.
3. Public Comment on Items Not on the Agenda
Gloria L. Young, Executive Officer stated there is a Finance Committee hearing tomorrow morning at 10:00 a.m. in City Hall, Room 263.
Chairperson Eisenberg stated that every agenda until December 29, 2000, should have item stating consideration of all appeals.
Gloria L. Young inquired whether or not the Commissioners wanted the Sunshine Ordinance on the agenda.
Chairperson Eisenberg stated it was sense of Commission to observe the Sunshine Ordinance whether or not the Commission adopts it, and thinks the Commission should put it on the agenda.
Joel Ventressca stated he wanted to urge Commission to follow the Sunshine Ordinance and would like LAFCo to consider waiving attorney-client privledge.
Chairperson Eisenberg closed the public comment.
4. Adjournment
Chairperson Eisenberg adjourned the meeting at 4:13 P.M.