Budget committee rejects two-year LAFCO MOU extension tied to Clean Power SF

The San Francisco Board of Supervisors’ Budget and Finance Committee on Tuesday declined to forward a two-year extension of an existing memorandum of understanding (MOU) between the Public Utilities Commission and the San Francisco Local Agency Formation Commission, a move that will leave the agreement to lapse unless the full board acts.

Chair Malia Cohen and Supervisors Katie Tang and Sheehy voted against the motion, while Supervisors Yi and Kim voted in favor. Supervisor Yi’s motion to recommend the MOU to the full board failed on a 2–3 roll call.

The failed resolution would have authorized the SFPUC general manager to execute a third amendment to an MOU with LAFCO that staff said would extend the agreement by two years without increasing a previously established not‑to‑exceed amount of $2,100,000. Michael Himes, director of the Clean Power SF program at the SFPUC, told the committee that Clean Power SF launched in May 2016 and has completed an initial enrollment phase, reaching roughly 76,000 accounts — about 20 percent of the city’s eligible accounts — and has about 300,000 accounts left to enroll. Himes said the PUC has a goal to complete citywide enrollment by July 2019 if it secures the required renewable energy supplies.

Jason Fried, executive officer for LAFCO, told the committee the MOU primarily funds staff time and related legal support to carry out outreach, stakeholder education and monitoring work on behalf of Clean Power SF. He said the MOU reduces the LAFCO general‑fund request and estimated it saves about $100,000 in next year’s general fund ask by charging CCA‑related staff time and counsel to the MOU arrangement.

Public commenter Jed Holtzman, a policy analyst with 350 Bay Area, urged supervisors to approve the extension, arguing LAFCO provides an independent public voice and specialized studies that complement SFPUC implementation. “It’s unfathomable to me why supervisors would have any reason to hold up an MOU like this,” he said.

But several supervisors questioned whether the SFPUC could continue implementing enrollment without LAFCO’s monitoring role once the city nears full enrollment, and whether LAFCO’s other studies and initiatives outside CCA work justified the continued MOU. Supervisor Tang said the program has progressed and that the PUC staff might be able to handle remaining programmatic tasks without the MOU’s support.

With the motion’s failure in committee, the resolution will not advance with a committee recommendation; the chair stated the item "dies in committee" unless separately scheduled or reconsidered by the full board.