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SFPUC staff touts solar bill win and advances digester-gas fuel cell contract; commissioners approve several contracts
Summary
Staff reported passage of AB 2573 allowing the city greater flexibility to site and move municipal solar generation and listed AB 2951 as passed by the legislature but awaiting the governor's decision. The commission also approved negotiating a roughly $2.2 million contract for a digester-gas fuel cell and approved several procurement items after questioning sole-bid and residency issues.
Laura Spangen, assistant general manager for external affairs, told the commission staff successfully advanced two bills in Sacramento. AB 2573 (authored by Assemblyman Mark Leno, sponsored by the SFPUC) would remove prior limits that prevented San Francisco from building more than 1 megawatt on a site and would let the city move excess solar output between municipal sites; staff said language referring to the Raker Act was removed to preserve flexibility. Staff also said AB 2951, a capital facilities fee repeal for educational institutions that closes a rebate loophole, passed the legislature but was still awaiting the governor's signature.
On procurement, commissioners removed items B and C from consent for separate consideration and then approved both after questioning the rationale for paying roughly $300,000 more than the low bid to a city-based contractor, confirming that those are city funds. Commissioners discussed concerns about the limited pool of bidders on some projects and asked staff to present contracting reforms at the next meeting.
The commission approved staff negotiating a contract with Alliance Power for a molten carbonate fuel cell facility at the Southeast plant, including operations and maintenance, for approximately $2.2 million; staff said the project would reduce flaring at the treatment plant by using digester gas to generate electricity.
Commissioners also discussed a frequent procurement problem: single bids on apparently straightforward mechanical contracts. Staff said they would present a summary of proposed contracting-process overhauls at the next meeting to address market and procedural issues.
