HomeMy WebLinkAbout11 COP Oversight Committee Agenda Item #
Public Utility District
Workshop
To: Board of Directors
From: Peter Holzmeister
Date: December 1, 2006
Subject: COP Oversight Committee
Why this matter is before the Board: During the Board's discussion of issuance of the
2006 water system Certificates of Participation (COP), the suggestion was offered that an
oversight committee be established. This workshop item is to discuss that suggestion
more fully.
History: Issuance of the 2006 water system COP was preceded by lengthy discussion.
As part of that discussion, there was concern that a portion of the debt was intended to
fund a multi-year pipeline replacement project. The concern was that the District may not
adhere, in a disciplined manner over the five-year timeline of the project, to replacement of
high priority leaking pipelines. The concern was, I believe, that given the long timeline of
the project, there may be a temptation to pursue other high priority projects not originally
intended, that people may lose sight of the original intent of the project and spend the
funds elsewhere. To deal with this possibility the suggestion was made that an oversight
committee be established to monitor the spending and to review the projects to be
constructed.
New information: I have no new information at this time. The purpose of the workshop is
to discuss further the idea of the oversight committee, how it would be established (its
membership) and its function.
Recommendation: This is a workshop item. No formal Board action is being suggested.