MCE board begins institutional makeover

After a week that saw a critical grand jury report and a longtime chief executive depart, MCE has turned to reform. The board of the renewable power agency agreed Thursday to hire a consulting firm, Leading Resources Inc. of Sacramento, to begin a $96,000 governance review. By late September, the firm is expected to propose restructuring MCE’s 34-member board and revising the bylaws. At the same time, the board — composed of elected officials from Marin, Napa, Solano and Contra Costa counties — is preparing to launch a CEO search and respond to a Marin County Civil Grand Jury investigation that “identified serious concerns regarding governance, oversight, transparency, and adherence to internal controls.” The grand jury, which released its report on Tuesday, concluded the board repeatedly failed to govern the $800-million-a-year agency. It said former chief executive Dawn Weisz and senior management expanded their authority, acted unilaterally, encouraged weak oversight, ducked transparency and accountability, and overstated the carbon-free content in electricity plans. MCE announced Thursday that Weisz had left the agency, but provided no other details. Neither Weisz nor board members offered further comment. The grand jury report was not on the MCE board agenda and was not discussed, other than noting the agency had to respond within 90 days. Most discussion concerned the credentials of Leading Resources and the sequencing of the governance review, the grand jury response and the search for a new chief executive officer. The first phase of the consultants’ review will focus on the MCE board. The second phase will focus on implementation and the MCE management. Marin County Supervisor Mary Sackett, a member of the governance subcommittee, said Leading Resources distinguished itself among the 16 firms seeking to lead the governance review. She cited its experience with restructuring the Imperial Irrigation District in Southern California and its long affiliation with the Sacramento Municipal Utility District. “They had dealt with issues that were messy,” she said. “That … was something that none of the other applicants had mentioned, which, given the number of plates that are spinning at the moment, stood out.” Eric Douglas, a partner at the firm, said it doesn’t “have any qualms” about the grand jury report. “It’s very helpful,” he said. “I think it helps, actually, in a way, jump start the process.” Douglas said developing a blueprint to restructure the MCE board and senior executive team is a first step to getting an able chief executive. “A CEO is not going to be very interested in looking for a board where there is a lack of clarity about governance,” he said. “I have worked several times with other public agencies where the very exact same set of circumstances have been in play, and believe me, a CEO will be looking very carefully at this, and the talented ones will not be attracted to an organization that hasn’t gotten a clear roadmap in place.” “Thank you, and I believe that was helpful,” said board chair Shanelle Scales-Preston, a Contra Costa County supervisor. “Stopping right now to pause on the governance assessment does not provide us a path forward.” “I realize it seems chaotic to a certain extent, and it is, but we need to move forward,” said Fairfax Councilmember Barbara Coler. “It’s not a perfect situation, but we’re here.” Belvedere Mayor Sally Wilkinson and Larkspur Mayor Stephanie Andre both said an outside attorney specializing in governance should advise the board. General counsel Catalina Murphy, who reported to Weisz and not the board, said MCE is soliciting proposals and will bring those to the governance panel. During the public comment period at the meeting, several advocates urged the board to put the grand jury report on upcoming agendas. “I would greatly appreciate if that was agendized at the next board meeting so that the public can also participate in not only analyzing the findings but also be part of the solution,” said Alicia Minyen, a former federal securities fraud investigator. Minyen also said MCE had not fully responded to her public records request in October concerning its sale of nearly $3 billion in bonds. “When the prepaid bonds were considered by you, you were told … that would translate to lower rates for customers,” she said. “I don’t see the evidence.” “The civil grand jury did a very good job carrying out a good deal of research,” said Jody Timms of 350Marin, an environmental group. “This report captures most of the frustration many of us climate advocates have been experiencing during our interactions with the board and the staff at MCE over the last few months and even years.”