Meeting Information 
MINUTES
Special Meeting 
  Friday, January 11, 2002, 1:00 p.m.
  City Hall, Room 263
Interim Chair: Commissioner Ammiano
  Members: Commissioners Ammiano, Gonzalez and McGoldrick
  Clerk: Monica Fish
SPECIAL AGENDA
(There will be public comment on each item)
  Call to Order and Roll Call
 
  The meeting was called to order by Commissioner Ammiano 
    at 1:02 p.m.
  Members Present: Commissioners Ammiano, Gonzalez and McGoldrick
  Members Absent: None
  CLOSED SESSION (Continued from November 16, 2001).
 
  Public Comment
  No Public Comment
  Public Comment Closed
  CONFERENCE WITH LEGAL COUNSEL
  Motion that the San Francisco Local Agency Formation Commission 
    convene in closed session under the provisions of Government Code Section 
    54956.9(a): Winchell Hayward v. San Francisco LAFCo; City and County of San 
    Francisco Case No. 324661, for the purposes of conferring with or receiving 
    advice from legal counsel.
  Question: Shall this Motion be ADOPTED:
  Commissioner Ammiano moved to take the agenda out of order, 
    discuss Agenda Item 3 next, and move this item to the end of the meeting. 
    Commissioner McGoldrick seconded. No objection.
  Approval of Minutes of the Commission Meeting of November 
    16, 2001.
 
  Commissioner McGoldrick moved to approve the Minutes of 
    November 16, 2001; Commissioner Gonzalez seconded. No objection.
  No Public Comment
  Public Comment Closed
  Interview and possible appointment of Public Member. 
    The candidate is Bernard Choden.
 
  Gloria L. Young, Executive Officer stated that the Commission 
    has received one application from Bernard Choden for appointment as a public 
    member.
  Commissioner Ammiano stated that Bernard Choden is the 
    only applicant, and that he prefers that there be a range of applicants for 
    this position. He stated that LAFCo might be embarking on a feasibility study, 
    and that an outreach be done to obtain the necessary expertise. With the compliance 
    of the other Commissioners, he would like to continue this item to the next 
    meeting after an extensive outreach. Mr. Choden would still be in the running 
    after an outreach has been done.
  Bernard Choden stated that organizational feasibility 
    happens to be his professional specialty. It has been the lack of that specialty 
    on the Commission that has been one of the largest problems. What is the best 
    means of delivering energy despite the various conflicts that are basic to 
    the pursuit of energy such as water and energy, tangible needs, public goods 
    that benefit the public as a whole versus specific benefits such as cost, 
    and the environment versus cost? A feasibility specialist has to deal with 
    consequences, probability, and industrial complex analysis. There is nobody 
    in government at this moment that has the scope or integrity that he would 
    bring after further expanding a search that has been going on for two months 
    and would stymie the Commission. If there are personal difficulties, he would 
    bow out. If the Commission is looking for expertise with integrity, then they 
    need somebody on that side of the table now in order to not pursue feasibility 
    studies by consultants who may be prejudiced in pursuit of other contracts. 
    He fully respects that the Supervisors have little time and broad agendas, 
    and he would not continue the agency for the purpose of looking at other aspects 
    of its purview. 
  Public Comment
  Richard Ow stated that he has known Mr. Choden for many 
    years and he is a public-minded person. He works very hard for MUNI, and there 
    is a slight improvement that he should get credit for. Mr. Choden is an early 
    supporter of public power and believes that he has done a lot of work for 
    Propositions F and I. Mr. Ow supports Mr. Choden as the best man for the LAFCo 
    public member vacancy.
  Public Comment closed.
  Commissioner Gonzalez asked about the timeframe that the 
    Commission has to appoint a public member.
  Gloria L. Young, Executive Officer proposed March 1st 
    as the next meeting in order to have an extension of application time to February 
    15th, or it could be later depending upon whether additional outreach 
    is done. 
  Commissioner Ammiano stated he would like to meet sooner.
  Commissioner Gonzalez recommended that the Commission 
    meet in February.
  Gloria L. Young recommended Friday, February 15th. 
    The deadline for the applications could be set for February 6 or 8.
  Commissioner McGoldrick stated that he could not attend 
    the February 15th meeting.
  Gloria L. Young recommended Friday, February 8th 
    and asked the Clerk if the deadline stated on the advertising of applications 
    to be received could be February 1.
  Monica Fish, LAFCo Commission Clerk concurred.
  Commissioner Gonzalez asked the Executive Officer what 
    qualifications she thinks the Commission should be looking for.
  Gloria L. Young stated that the requirements are identified 
    in the Cortese-Knox-Hertzberg Act. She believes the Commission needs an individual 
    who is interested in participating, available, and has the discretion and 
    discernment in assisting the existing Commissioners in the decisions that 
    the Commission has to make in the next couple of months with respect to what 
    we are going to do with the "Shadow MUD," scoping of issues, and 
    looking at the feasibility of providing energy. Their ability in having strong 
    utility experience and knowledge is critical. The Commissioners need to determine 
    what area is missing from their collective knowledge and determine what to 
    add in order to complete the Commission. 
  Commissioner Gonzalez stated that the Commission needs 
    a fourth member of the Board.
  Gloria L. Young stated that Supervisor Hall has indicated 
    that he may be interested. A meeting will be set up for further discussion.
  The Commission agreed to establish February 8th 
    as the next meeting of the SFLAFCo.
  Commissioner Ammiano moved to continue this item to the 
    February 8, 2002 meeting and interview whoever else may apply. No objection. 
    
  No Public Comment.
  Public Comment Closed.
  Election of 2001-2002 Officers for the San Francisco 
    Local Agency Formation Commission (SF LAFCo). (Continued from the November 
    16, 2001 Commission Meeting.)
  Commissioner Ammiano stated that because of the lack of 
    applicants for a public member, this item should be continued to February 
    8.
  Commissioner McGoldrick asked if the Commission is allowed 
    to proceed without appointed officers according to the LAFCo rules.
  Nancy Miller, Esquire stated it is legal to proceed with 
    an interim Chair.
  No Public Comment
  Public Comment Closed
  Resolution regarding SF LAFCo Budget/Revenue Understanding 
    with the San Francisco City and County (Continued from the November 16, 2001 
    Commission Meeting)
 
  Nancy Miller, Esquire stated that this Resolution is attempting 
    to define the process from which funds are released from the Board of Supervisors. 
    There has been discussion between the Executive Officer and staff regarding 
    a procedure. This is unusual because you are a consolidated City and County. 
    Normally the funds are directed to LAFCo. Here there is a process that is 
    desired to be put in place by LAFCo and the Board of Supervisors where there 
    is an approval process. We put in the request, the Board of Supervisors sees 
    it, approves the request, and the money is released. The second need for the 
    Resolution allows the Executive Officer to move money within budget items 
    in the event of a shortfall in one item to transfer to another item with full 
    disclosure in reporting to your Commission prior to doing so.
  Commissioner Gonzalez stated that he understands that 
    if the LAFCo as a state agency makes appropriation decisions, that the City 
    and County is essentially liable for those decisions.
  Nancy Miller, Esquire stated that was true. LAFCo has 
    a budget and cities, counties, and special districts put money into the budget 
    that becomes the LAFCo budget to do what it deems necessary in accordance 
    with its adopted budget.
  Commissioner Gonzalez asked what would happen if this 
    state Commission would spend money in excess of its budgeted amount.
  Nancy Miller, Esquire stated that the LAFCo would then 
    be in a deficit which would have to be rolled over into the next budgetary 
    year. The Commission has no ability to assess additional funds. The Commission 
    could hold another hearing with the City and County and request additional 
    funds, but would have no ability to demand it. There are emergency provisions 
    that are available in case of issues such as lawsuits. 
  Commissioner Gonzalez asked if legal counsel could state 
    the rules for the Executive Officer.
  Nancy Miller, Esquire stated that the first rule is that 
    the Executive Officer will request funds from the City and County of San Francisco 
    in amounts not to exceed the adopted budget . The second rule is that the 
    Executive Officer will then request concurrence by the Board of Supervisors 
    for such funds and their concurrence may not be unreasonably withheld. Upon 
    concurrence the funds are transferred. The third rule would be that the Executive 
    Officer may reallocate funds received in the event of an increase and decrease 
    in certain budgeted items, and in no event shall the overall budget amount 
    be exceeded without prior amendment by both this LAFCo and concurrence by 
    the Board of Supervisors.
  Gloria L. Young stated that the LAFCo was formed in 2000 
    and the $754,250 that was approved by the Board of Supervisors was set in 
    a separate sub-account. What has occurred over the last two years is that 
    that account has remained the same and has been reduced by the expenditures 
    that this Commission has incurred over the last two years. That budget has 
    not been replenished. Currently, there is $364,000 still in reserve, and the 
    existing operating budget balance is approximately $125,000. Depending upon 
    the longevity of LAFCo, there is a legal requirement that by June of this 
    year LAFCo hold a public hearing to adopt a budget. That process was held 
    last year but was not reflected in the budget adopted by the Board. One change 
    was included with respect to the stipend that the Commissioners received.
  Commissioner Gonzalez asked if LAFCo would be bound by 
    this Resolution if adopted. He stated It would seem that as a state entity, 
    to the extent that the City and County makes an appropriation of a LAFCo, 
    the Commission can spend the money. There may be natural constraints related 
    to having to go back for a supplemental appropriation or to keep the Finance 
    Committee informed of what is going on. Having been a member of the Finance 
    Committee, it does not make sense that a Commission that is going to include 
    four members of the Board has to go get approval from three members of the 
    Board.
  Gloria L. Young stated that this response was made because 
    of a direct request by the Finance Committee to the SFLAFCo Executive Officer. 
    At the time, we brought before the Finance Committee a requirement to get 
    some funds from the reserves to pay for the services of the City Attorney's 
    Office, outside counsel, and the consulting contract. The Finance Committee 
    requested that the Executive Officer provide a formal relationship between 
    the Board of Supervisors and LAFCo. This was directed and approved by the 
    Finance Committee, and subsequently, the proposal allows an opportunity for 
    the Commission to either adopt the process or not.
  Commissioner Gonzalez stated that the discussion that 
    took place at the Finance Committee was prior to the discussion that took 
    place at the full Board where the City Attorney, Mr. Delventhal, explained 
    and made clear that this idea that the LAFCo is going to be treated like a 
    City department that is asking for a release of funds that have been put on 
    reserve is not really the dynamic that is going on between a State Commission 
    and the Board of Supervisors. He found that advice to be compelling. The rules 
    that should be put in place should be about informing the Finance Committee 
    or other colleagues of the Board of Supervisors when action is taken in either 
    changes in the LAFCo budget or in the appropriation of certain dollars. A 
    scenario of the formal requirement that we go to the Finance Committee before 
    releasing money would slow down the Commission's ability to take action. The 
    Finance Committee is trying to put together rules with City Departments whereby 
    they don't spend money and then ask that money be released. He stated that 
    the state Commission be given different consideration because of the nature 
    of who is on the Commission and the nature of the Commission as a state agency.
  Gloria L. Young stated that she concurred with Commissioner 
    Gonzalez. Deputy City Attorney Delventhal agreed that if the Commission and 
    the Board chose to have a resolution that represented their relationship, 
    that was between the Board and the Commission. 
  Public Comment
  Bruce Brugman, Bay Guardian stated that it is critical 
    that the Commission not take any action that precludes paying for a consultant 
    and a proper feasibility report. 
  The report that R. W. Beck is doing for East Bay MUD costs 
    $400,000, is due at the end of this month, and is a nine- or ten-month project. 
    To have a feasibility study done and to have a consultant in place to defend 
    and explain it considering it will be on the ballot again in the Fall, does 
    not present a large window of opportunity. He urges the Commission in going 
    through these procedures to do everything they can to move the process along 
    expeditiously with adequate funds.
  Public Comment Closed
  Commissioner Gonzalez stated that in a given year, the 
    Commission is not going to meet that many times. When making a decision about 
    the appropriation of money either to hire counsel or to engage consultants, 
    the Commission does not want to be put in a position to have to send an item 
    to Finance. The Finance Committee may want to continue the item to get up 
    to speed with the specific issues that the Commission is dealing with and 
    would have to give approval before the Commission can move. He has no problem 
    adopting rules that require the Commission to remain within the budget that 
    is allocated by the Board of Supervisors that requires our Executive Officer 
    to inform all of our colleagues including the Chair of the Finance Committee 
    of any action that the Commission is taking. 
  Commissioner Ammiano concurred. 
  Commissioner McGoldrick stated that this Commission has 
    the authority to expend funds, and that the City and County of San Francisco 
    would be in the position to pay for those funds.
  Nancy Miller, Esquire stated that the Commission does 
    not need to seek concurrence from the Board of Supervisors. She stated that 
    by deleting Number 2 of the Resolution, the Commission would accomplish their 
    intent.
  Commissioner Gonzalez asked if Number 2 could be moved 
    to the bottom and that way we give notice of transfer of funds or reallocation 
    of funds, and that the notice should go to all the members of the Board and 
    the Clerk of the Finance Committee.
  Nancy Miller, Esquire stated that number three, the third 
    line of the Resolution would read "shall report such transfer or reallocations 
    of funds to SF LAFCo, the San Francisco Board of Supervisors, and the Clerk 
    of the Finance Committee."
  Commissioner McGoldrick asked if the Commissioners should 
    take those actions rather than the Executive Officer.
  Gloria L. Young stated that her concern is that we are 
    paying two outside consultants with a small budget. Depending on the activities 
    that LAFCo has, there may be a need to transfer funds within our existing 
    available balance in order to make sure we can pay them in a timely manner. 
    Right now, the Commission is operating under the $125,000 that is in our available 
    balance, and our reserve would have to go back to the Board and the Commission 
    for approval to have any other transfers and then to the Board to have those 
    funds released. We have performed a good job in maintaining the funds for 
    two years within a small limited budget, and any changes would be brought 
    to the full Commission unless otherwise authorized. 
  Gloria L. Young stated that the $364,000 is out of the 
    total budget of $754,000 which the Commission has been operating out of for 
    the last two years. The Commissioners will get an expenditure report as to 
    what those costs have been charged to. We do have some obligations under that 
    $125,000 for temporary services, fringe benefits, and materials and supplies. 
    Depending upon the urgency to pay our legal counsel or start a process in 
    terms of advertising or publishing whether it's RFQ's etc., it is necessary 
    that we have flexibility to move those dollars until we can come back and 
    ask for a release of reserves.
  Commissioner McGoldrick asked why the full amount is not 
    available and why part of it is called reserve.
  Gloria L. Young stated that when the LAFCo first came 
    into existence in 2000, the Board of Supervisors provided for a modest budget 
    to begin the operation and to look at a scope of services study with respect 
    to the MUD. So they released $254,000 and kept approximately $500,000 in reserve. 
    About five months ago, she went before the Finance Committee after coming 
    to the Commission for approval and requested additional funds from the reserve 
    to pay an outside consultant and to hire legal counsel. It is an action that 
    has to go back to the Board because the Board put those funds in reserve.
  Commissioner McGoldrick stated that it is money that is 
    appropriated, but not allocated.
  Gloria L. Young stated that was correct.
  Resolution adopted as amended. No objection.
  Discussion and action regarding direction to the Executive 
    Officer to reallocate the existing budget to provide for appropriations for 
    consultant services and additional temporary staff support (Continued from 
    the November 16, 2001 Meeting).
 
  Commissioner Ammiano stated that the Commission should 
    defer any large expenditures because they want to retain as much as possible 
    for the potential costs of a professional feasibility study.
  Gloria L. Young stated that this action is associated 
    with if the Commission wanted to go ahead with the scoping and the RFQ for 
    services to assist with providing the Commission with public power. Given 
    our existing budget, we have the ability to reallocate those funds if we have 
    support for that effort. We also made a request to get a release of reserves 
    depending upon what our financial situation is. Currently the Commission's 
    budget calls for a half-time temporary position. What we did is have the Committee 
    Clerk work a full time schedule over the last year because of the amount of 
    effort towards the SF LAFCo MUD issue that was placed before the voters. We 
    have expended those funds allocated for the temporary position for the half-time 
    position, so we need to reallocate if the SF LAFCo plans to continue and if 
    there is a need to have ongoing support in that area. 
  No Public Comment
  Public Comment Closed
  Commissioner Ammiano moved to approved this item; Commissioner 
    McGoldrick seconded. No objection.
  Recommendation and action regarding the SF LAFCo Subcommittee 
    recommendations on scoping of issues for a Request for Qualification (RFQ) 
    to provide data and information to the Commission on public power options, 
    including scheduling possible hearings at the SF LAFCo on public power options 
    (Continued from the November 16, 2001 Commission meeting).
  Recommendation and action regarding direction to the 
    Executive Officer on the selection of a consultant(s) to assist on scoping 
    of issues and providing data to the Commission on public power options including 
    participating in possible hearings at SF LAFCo on public power options (Continued 
    from the November 16, 2001 Commission meeting).
  (Both items will be heard together.)
  Commissioner Ammiano stated that there has been talk of 
    an RFQ process in order to get qualifications from energy consultants. A public 
    meeting would be scheduled in which experts would advise the Commission as 
    to what the scope of services should be. That is fine, but to allow for the 
    time for a report to be completed by June, a public meeting to discuss scoping 
    should occur in February. The Commission should then be prepared to direct 
    the Executive Officer to issue a Request for Qualifications at that February 
    meeting. His office has been in touch with Mr. Smeloff and the PUC, and he 
    has agreed to review the scope of services as it stands now, to take into 
    account the energy plan which is under development to comply with Supervisor 
    Maxwell's ordinance, and to propose a scope of service for an independent 
    consultant. He would like to ask that the Commission direct the Executive 
    Officer to work with the PUC and the Department of Environment staff to develop 
    a proposed scope of work for a Request for Qualifications, develop other documents 
    required to issue the RFQ, develop a mailing list of qualified consultants, 
    and to research other public notice requirements to report to the Commission 
    at the February 8 meeting. In addition, in consultation with the attorneys, 
    develop a draft bid package for LAFCo review at the February 8 meeting.
  Public Comment
  Ross Mirkarimi stated that he supports Commissioner Ammiano's 
    sentiments with the resurgence of purpose for LAFCo in expediting an RFQ towards 
    the implementation of a feasibility study so that the many of the supporters 
    of public power are enabled to re-aim their focus and bring back to the voters 
    in the near future the opportunity to decide for San Francisco's conversion 
    for a municipal power. He supports this body and the Board of Supervisor's 
    instincts in effectuating a feasibility study post-haste, so that it concurrently 
    runs with overwhelming and important decisions that we witness in the Chronicle 
    and the media about PG&E's existence as it stands today. As our campaign 
    had projected and much of which is coming to fruition, we are seeing PG&E 
    trying to broker its particular status so it circumvents state regulatory 
    control by negotiating a deal out of bankruptcy so that an out of state unregulated 
    utility company becomes the supplier and servicer to San Francisco City government. 
    He thinks a feasibility study, once implemented, would affirm the protection 
    of San Francisco consumers while PG&E's fate remains to be decided by 
    both state and federal entities. He looks forward to supporting the Commission 
    from a number of community advocate positions and looks forward to working 
    with the Commission to make sure the feasibility study, public policy, and 
    civic minded interests of San Francisco come to support the fruition of public 
    power.
  Bruce Brugman, Bay Guardian stated that he wanted to affirm 
    what Ross Mirkarimi stated. He provided the Commission with the actual press 
    release that came from the Attorney General's office because it raises a lot 
    of issues as to whether the City and County of San Francisco should join in, 
    when and how. The issues may not fall in LAFCo's jurisdiction, but is part 
    of the context and background for the feasibility study. This is an extremely 
    important and complicated study. As was found out in the last campaign, a 
    good independent study to go up against the PG&E onslaught was needed. 
    One of the reasons the measure was beat was because a feasibility study was 
    not in place. He has been told by the public power people that have done these 
    studies within the country that there are only a couple of firms that are 
    really strong and qualified enough to take on this type of study and the fact 
    that they will be facing a massive onslaught by PG&E. It is a firm that 
    has done a lot of public power work that is on the web and is doing a study 
    in Berkeley. At one time, it was the public power consultant to the PUC in 
    San Francisco, who has credentials and previous history here. He urges the 
    Commission to move expeditiously with the process. This is the key element 
    of the oncoming battle to have a strong feasibility study with consultants 
    who can stand by and defend their study here and in court.
  Commissioner Gonzalez asked legal counsel to address this 
    issue. He wants to make sure he understands the RFQ process and whether or 
    not the process of doing this study should be a public process or a matter 
    of turning it over to someone to bring the Commission a finished product.
  Don Maynor, Esquire stated that he thought the Commission 
    was going to conduct a series of hearings and at the same time hire a consultant 
    who would take the benefit of those public hearings, as well as use their 
    own expertise in producing the feasibility study. He thinks there would be 
    a great advantage to the City and County to conduct a series of hearings. 
    You could begin the process right away without selecting a consultant in advance. 
    
  Commissioner Gonzalez stated that he would be interested 
    in hearing what legal counsel would have to say about the manner in which 
    the public hearings would be set up. If those public hearings are going to 
    be incorporated in the essential records of what our expert has taken into 
    account in terms of a sphere of influence, shouldn't those hearings begin 
    once that expert has been hired?
  Donald Maynor, Esquire stated that he has contacted some 
    people who might participate in these hearings, and they would like a couple 
    of months notice just for planning purposes. If the Commission wants to conduct 
    meetings a couple of months from now, he assumes that would be adequate time 
    to retain your consultant. By the time your hearings are ready to go, your 
    consultant would be on board. You would want to get a thorough investigation 
    from experts in public power as to what the advantages are. You would want 
    to get PG&E and PUC to come in and explain what the alternatives are, 
    to have an opportunity to look at special issues, and to hear from the public 
    as well. At the end of that process, you would have a good record and then 
    issues and questions would come up where you would want further information 
    and studies done. That is when a consultant would be of great assistance to 
    you. 
  Commissioner Gonzalez asked if the Commission could adequately 
    conduct those hearings with the budget that we have for the LAFCo.
  Donald Maynor, Esquire stated that the people he spoke 
    to were not asking for fees. The main thing he heard is advance notice so 
    they can plan their schedules.
  Gloria L. Young stated that she concurred with legal counsel. 
    She contacted several people in the Bay Area (such as APPA in Sacramento and 
    other cities) who are willing to participate and have not asked for stipends 
    or any other funds. She does believe the public hearing is crucial, and that 
    the arena be set up so that we get a full record of the information that is 
    transmitted from those experts that are invited to participate.
  Commissioner Gonzalez asked Mr. Maynor to address the 
    question as to whether the consultant should be hired prior to the public 
    hearing.
  Donald Maynor, Esquire stated that it would be advantageous 
    but not essential to hire the consultant first. You have a lot of expertise 
    in the City already. In addition to inviting speakers, the Commission could 
    hand them a series of questions and encourage them to prepare written information 
    as well as oral comments. Using the expertise of your in-house people, they 
    could ask the appropriate questions. 
  Commissioner Gonzalez asked if Mr. Maynor has seen this 
    kind of public hearing done with this kind of scoping.
  Donald Maynor, Esquire stated this process was done at 
    the PUC looking at the deregulation of the electric industry that occurred 
    over a two year period. They brought in people from all over the world. The 
    advantages were that you got a good sense of what the issues and risks were 
    such as the risks that you would be facing in the future. It seems like every 
    decade or so there are many critical issues that come about. Utilities, whether 
    municipal or privately owned, have to make critical decisions. There are a 
    lot of changes going on right now–changes in technology and changes in regulatory 
    landscape. The Commission would want to have a good idea what the key issues 
    are and find out what the PUC and PG&E have in mind. If you don't agree 
    with them, you will be in a better position to make decisions. 
  Commissioner Gonzalez asked how many hours in public hearings 
    would be estimated.
  Don Maynor stated that he was anticipating four hearings, 
    possibly one day each (six hours each).
  Commissioner Gonzalez asked how the RFQ could be changed 
    to take into account what legal counsel is suggesting as to how the Commission 
    should proceed in terms of coordinating the public hearing with an independent 
    study.
  Donald Maynor, Esquire stated that he would not change 
    the RFQ.
  Commissioner Gonzalez recommended thinking of a timeframe 
    and setting up a date to have a consultant in place. Is Mr. Maynor talking 
    about four public hearings, probably over a scope of two or three weeks?
  Mr. Maynor suggested a couple of weeks between hearing 
    dates.
  Commissioner Gonzalez stated that we are then looking 
    at a two-month period of hearing dates. Possibly we can look at March, April 
    and May if that is not too soon.
  Commissioner McGoldrick stated that if we do not have 
    to have a consultant in place, a consultant could avail himself or herself 
    around the public record that would develop around these hearings. He would 
    prefer not to tie the Commission to an acceptance of a consultant by the date 
    when we want to start the public hearings.
  Donald Maynor, Esquire asked who the Commission would 
    want to moderate these hearings. Sometimes a consultant could perform that 
    role, but it is not necessary. When the RFQ was originally discussed, it was 
    with the idea that somebody gather information about these hearings, and not 
    in terms of preparing feasibility studies. It may be useful to modify the 
    RFQ to make sure they have experience in preparing feasibility studies.
  Commissioner Gonzalez stated that he understands that 
    counsel can participate as well.
  Gloria L. Young suggests that the Commission conduct the 
    hearings prior to going for the RFQ. She is concerned about the timing and 
    with the RFQ you would be requesting some indication what that type of RFQ 
    would cost from those submitting the proposals. We would also have to go back 
    to the Board if the reserves are not adequate. There is $364,000 in reserve 
    that we have to keep in mind. You may want to think about whether or not it 
    is more crucial to have the hearings and make sure we have the record available 
    to the hired consultant.
  Donald Maynor, Esquire stated that the other possibility 
    is to have two phases. Have the consultant available to assist in the hearing 
    phase (Phase One). After that, have the consultant come back with a proposal 
    to perform a feasibility study (Phase Two). At that time, you would be in 
    a better position to decide what you really need in a feasibility study. If 
    they come back with a successful offer for Phase Two, fine. If they don't, 
    you have that public hearing record, and you could always go back and get 
    another consultant to do the Phase Two work.
  Commissioner Gonzalez stated that he would be interested 
    in making a commitment to meet a sufficient number of times in the next month 
    and a half and may want to consider more frequently to make sure these things 
    move along.
  Commissioner Ammiano stated that was more of a reason 
    to appoint the fourth member and a public member.
  Commissioner McGoldrick stated that the Commission also 
    has an alternate position for appointment, but there is no person in it at 
    this time.
  Commissioner Gonzalez asked if the schedule for LAFCo 
    meetings last year was monthly.
  Commissioner Ammiano stated that the schedule was monthly, 
    but there were sub-meetings that were also held. People dropped off and then 
    joined. 
  Gloria L. Young stated that we could start setting meeting 
    dates and could get preliminary dates from those experts that have been invited 
    to participate.
  Commissioner Gonzalez suggested meeting twice a month 
    for at least the next two or three months. 
  Commissioner Ammiano asked if the Commission has a recourse 
    if there is no quorum.
  Commissioner McGoldrick asked if there would be no quorum 
    if the Chair and the Vice Chair were not present, even if there were three 
    out of five sitting Commissioners.
  Nancy Miller, Esquire stated that the procedures could 
    be changed to allow for a quorum if in the event the Chair and Vice Chair 
    aren't there, and the Commission has a total of five Commissioners but only 
    three are in attendance. The item would have to be put on the agenda. She 
    stated that Mr. Maynor and her also discussed putting out an RFQ for qualified 
    consultants that could be available during this hearing process at an hourly 
    rate or whatever rate is negotiated, not necessarily under a contract to perform 
    a study in order to not lose any time.
  Commissioner McGoldrick stated that eventually the Commission 
    would have an alternate so there would be a total of six that could meet together. 
    Any three would comprise a quorum.
  Public Comment
  Richard Ow stated that he heard so much about consultants 
    and the RFQ. He urges the Commission to give the consultants direction. We 
    have lots of poor people, working class people working below the minimum wage, 
    and also pensioners in San Francisco. Electricity is needed by everyone and 
    is not a luxury. 
  Ross Mirkarimi stated that he appreciates the direction 
    that LAFCo is heading, especially with the process of having comprehensive 
    hearings, while considering the RFQ process for consultants to conduct the 
    feasibility study. He wants to highlight an important fact that the feasibility 
    study is a six- to nine month process. This corresponds with late-breaking 
    news what PG&E is experiencing in San Francisco and the state of California 
    and for tactical reasons, that we find greater emphasis to be placed on the 
    completion of a feasibility study. With such eager desire by community leaders 
    and citizens, we can bring this back to the voters in 2002 instead of 2003.
  Public Comment Closed.
  Commissioner McGoldrick asked if we are moving quickly 
    enough to have everything in place for the voters in 2002.
  Commissioner Ammiano stated that that is the Commission's 
    intention.
  Discussion and action regarding recommendations, options, 
    and alternatives for the "Shadow MUD."
  Commissioner Gonzalez stated that this issue was discussed 
    at the last meeting and there was a question as to whether this item should 
    be tabled or be placed on the agenda. He motioned to continue this item to 
    the Call of the Chair, and in the event that we want to discuss the item, 
    it is available to us. He thinks that specific considerations about a MUD 
    would likely come up in the process of the public hearings and or feasibility 
    inquiries. Commissioner Ammiano seconded. No objection.
  No Public Comment
  Future Agenda Items
  Change/modification to procedures to allow three Commissioners 
    to sit in session.
 
  
No Public Comment
  Public Comment for Items not on the Agenda
 
  No Public Comment
  CLOSED SESSION (Continued from November 16, 2001).
 
  (Item 2)
  No Public Comment
  Public Comment Closed
  CONFERENCE WITH LEGAL COUNSEL
  Motion that the San Francisco Local Agency Formation Commission 
    convene in closed session under the provisions of Government Code Section 
    54956.9(a): Winchell Hayward v. San Francisco LAFCo; City and County of San 
    Francisco Case No. 324661, for the purposes of conferring with or receiving 
    advice from legal counsel.
  Public Meeting adjourned at 2:10 p.m.
  Closed Session convened at 2:12 p.m.
  Closed Session adjourned at 2:19 p.m.
  Commissioner Ammiano called to order the meeting of the 
    San Francisco Local Agency Formation Commission at 2:21 p.m. 
  After a closed session, if one occurs, the Chairperson 
    shall (1) request the Legal Counsel to identify the subjects discussed in 
    the closed session, and (2) direct the Clerk to report the vote taken on any 
    motion in the closed session.
  [Elect to Disclose]
  Motion that the SF LAFCo finds it is in the public interest 
    to disclose information discussed in closed session, and directs the Chairperson 
    immediately to disclose that information.
  [Elect Not to Disclose]
  Motion that the SF LAFCo finds that it is in the best 
    interest of the public that the Board elect at this time not to disclose its 
    closed session deliberations concerning the litigation listed above.
  Nancy Miller, Esquire moved that the Commission elect 
    not to disclose the matters discussed in closed session and stated that no 
    action was taken. No objection.
  Adjournment
 
  The meeting of the SF LAFCo Commission adjourned at 2:23 
    p.m.