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Rules committee backs change allowing SFPUC to contract directly with developers for electric infrastructure
Summary
The Rules Committee voted to send an ordinance to the full Board of Supervisors that would let the San Francisco Public Utilities Commission contract with developers to install electric facilities (rather than the PUC doing the work), while preserving worker protections and cost-comparison safeguards.
The San Francisco Board of Supervisors Rules Committee voted unanimously April 12 to forward an ordinance that would allow the San Francisco Public Utilities Commission to contract directly with developers installing infrastructure under city development agreements to build electric equipment the PUC would otherwise install.
Manuel Ramirez, manager of redevelopment projects for the SFPUC Power Enterprise, told the committee the change closes “a little gap” in current rules. Under chapter 99.2 of the Administrative Code, developers typically pay for substructure (conduits and trenches) while the PUC installs electric facilities; PUC rules last amended in 2017 already allow developers to install certain electric facilities but do not provide a direct reimbursement mechanism. The ordinance would waive city competitive-bidding requirements for these limited contracts, enabling direct agreements with developers while requiring cost estimates and a comparison to what SFPUC would pay to complete the same work.
Ramirez said the ordinance keeps protections for workers: the PUC could reimburse only entities in a development agreement that (1) require the developer to complete the infrastructure and (2) include a workforce and job-creation program that mandates nondiscrimination and payment of prevailing wages. Ramirez added the primary rationale is schedule: allowing a developer who is already on site to install facilities can keep construction on time.
Supervisor Percy Burch, who said the change would help revitalize public housing in District 10, urged the committee to proceed. Vice Chair Rafael Mandelman described the ordinance as consistent with longstanding city policy to encourage clean, municipal power in new development.
During discussion, Supervisor Connie Chan asked what level of contractor expertise the work would demand; Ramirez answered that many contractors perform medium- to high-voltage work and that SFPUCutility field services can also perform that work. He confirmed the reimbursement basis would be the same whether the PUC or a developer installs the facilities.
After reopening public comment later in the meeting to allow additional callers, a representative from Bayview Hunters Point urged clearer outreach, saying constituents had not been meaningfully contacted about electric conversions and related development plans. The committee then voted to send the ordinance to the full Board of Supervisors with a positive recommendation; the roll calls recorded Supervisors Mandelman, Chan and Chair Aaron Peskin voting "aye" with no objections.
The Rules Committeeforwarded the ordinance for consideration by the full Board of Supervisors. If enacted, the city will be able to enter limited direct contracts with developers to install electric facilities in specified development projects, subject to workforce and cost controls described by SFPUC staff.
