City to Act on Recommendations of Audit Subcommittee

City Council has unanimously accepted its audit subcommittee’s preliminary report examining the handling of the Piedmont Hills undergrounding utility project, which left the city saddled with the bill for approximately $2.3 million in overruns after workers hit bedrock. With its motion Monday, the council directed city staff to prioritize the recommendations contained in the report for how to prevent similar debacles in the future.

"I think the recommendations are very good," said Councilwoman Margaret Fujioka, echoing the sentiments of her council colleagues. "I would like to see some if not all of the recommendations implemented."

Subcommittee member and vice-mayor John Chiang suggested some could be executed quickly. He pointed to the recommendation for an extension of the city's moratorium on undergrounding projects, which is currently set to expire in March 2012, as "low hanging fruit."

"What I would recommend is that we indefinitely suspend any future undergrounding utility districts until we have established a process whereby the city is not put at risk on any construction overruns, etc.," Chiang said.

A resolution to do that will be prepared by staff for a hearing at a future council meeting. Chiang said he would also be willing to jump in to help staff get risk management training, which falls within his professional expertise as a financial executive.

Monday's vote represents the final stage for the preliminary report.

A more comprehensive report may follow once pending litigation between the city and the engineering and design firms accused of mismanaging the Piedmont Hills utility undergrounding project has been resolved.

Councilman Garrett Keating said a final report needed to address staff conduct in the matter too.

Mayor Dean Barbieri said the subcommittee he chaired couldn't get into that in its preliminary report since the roles of the different parties involved is a subject of the litigation.

“For our committee, assessing the relative culpability was not part of the report,” Barbieri said.

The council is undecided regarding who would put together a more thorough final report. It could reconvene the same three-member committee, which included retired Judge Ken Kawaichi along with Chiang and Barbieri, or form a new group.