San Diego Environment Committee Reviews Gas & Electric Franchise ITB Process - March 4, 2021
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
San Diego Environment Committee Meeting: Gas & Electric Franchise ITB Update
On March 4, 2021, the City of San Diego Environment Committee convened virtually via Zoom webinar to receive an update on the City of San Diego Gas and Electric Franchises Invitation to Bid (ITB) process. Chair Sean Elo-Rivera presided, with Vice Chair Marnie von Wilpert and Councilmembers Chris Kate and Joe LaCava in attendance. The meeting featured a presentation from Mayor Todd Gloria's policy team, extensive public testimony (43 speakers on the main item), and committee member discussion of priorities for the upcoming franchise agreement. The current franchise agreement is set to expire on June 1, 2021.
Consent Calendar
- The committee unanimously approved the committee actions from the February 25, 2021 meeting with four yes votes (von Wilpert, LaCava, Kate, and Elo-Rivera).
Public Comments & Testimony
Non-Agenda Public Comment:
- John Stump requested the committee schedule a future review of how public notices for permits could be made more informative, noting paper and electronic notices lack maps, applicant descriptions, and project details.
- Dr. Veerabhadran Ramanathan, a climate scientist with 50 years of experience who previously briefed Pope Francis, expressed excitement about the city's move toward fossil-free electricity, calling it a major first step while noting climate warming will amplify by another 50% in less than 10 years.
- Joy Sanyata (District 3) thanked committee staff for improving public access and shared practical advice about the lag time between watching City TV and calling in.
Public Comment on Item One (Franchise ITB Update):
Speakers in support of SDGE included:
- Haney Hong (President/CEO, San Diego County Taxpayers Association) stated fire prevention should be prioritized and that longer contracts create certainty for lower-cost financing and rates; he cautioned that municipalization would put taxpayers on the hook for investments and liabilities.
- Jim Herrick (SDSU employee, 35 years) noted SDGE has philanthropically donated more than $1.2 million to SDSU over the last 10 years, with more than 400 SDSU alumni working at SDGE.
- Leanne Kim (District 6 resident, founder of Pacific Arts Movement) cited SDGE's support of 500+ nonprofits and its employment of 4,400 people.
- Arnulfo Manriquez (President/CEO, MAC) described SDGE's pilot program installing EV charging stations, with 40+ stations set aside for low-income communities.
- Karen Begin (San Diego Habitat for Humanity) highlighted SDGE's partnership, including energy efficiency evaluations and EV chargers in Logan Heights homes.
- Inez Gonzalez Perez Chica (Executive Director, Mana de San Diego) cited SDGE as a 25-year community partner.
- Michael Taylor (NWB Environmental Services, black-owned disabled veteran-owned business) said his company's business grew threefold with SDGE.
- Brent Wakefield (President/CEO, Meals on Wheels San Diego County) praised SDGE's individualized support for seniors.
- Joan Jones (Executive Director, San Diego Regional Fire Foundation) credited SDGE as a key partner for firefighter equipment and questioned whether a municipal utility could match SDGE's service.
- Daniel Zaragoza (45 years in power utility business) said SDGE has successfully managed the grid for over 100 years.
- Maurice Wilson (San Diego Veterans Coalition) said SDGE's support helped serve 25,000 veterans over 10 years.
- Jay Delosa (15-year SDGE employee) cited SDGE's resources and wildfire safety track record.
- Jolin Parker (San Diego Oasis) and Eugenia Welch (Alzheimer's San Diego, citing $500K+ in donations) praised SDGE's community support.
- Amy Rowland (Pandia Biological) noted SDGE's support enabled contracting with 40% diverse businesses.
- Wendy Urashima Khan (Epilepsy Foundation) and David J (National Conflict Resolution Center) praised SDGE's nonprofit engagement.
- Dick Ren Arnold (Worldwide Technology) supported SDGE as an IT partner.
- Steve Garcia (Patriot General Engineering, disabled veteran-owned) credited SDGE with elevating his business.
- Rebecca Ribzik (Downtown San Diego Partnership) encouraged continued partnership.
- David Seed (House of China) endorsed SDGE as an exemplary corporate citizen.
- Morgan Justice Black (SDGE employee) highlighted SDGE's environmental champions program and volunteer work.
- Nate Fairman (IBEW Local 465) stated the labor council supports a renewed franchise agreement with SDGE of at least 20 years, protecting union jobs and ensuring card check neutrality.
- Bill Roper (local businessman, unaffiliated with SDGE) urged the committee not to respond to what he called misinformation and noted SDGE has been transitioning to renewables for decades.
Speakers critical of SDGE or supportive of public power included:
- Amanda Reeton (San Diego 350, District 2) said SDGE has continually undermined the city's clean energy goals; she called for agreements lasting no longer than three years with community and equity provisions and worker protections.
- Joyce Lane (San Diego 350) urged the mayor's office to bring ITB terms to the council before release, adopt three-year agreements, and contract for a detailed public power business plan.
- Shauna McKenna argued SDGE's rates are the highest in the country and called for democratic control of energy through public power.
- Jay Powell stated the council has charter power to set terms and that the ITB should not go out before council review.
- Barbara Jaffe Rose (Tierra Santa) supported a public power utility district, noted the city is in litigation with SDGE over $35 million related to the Pure Water Project, and warned against an "Ash Street debacle times 10."
- Zoe Marinello Cohn (SD 350, District 2) called for franchise agreements reflecting clean energy values with equity provisions and worker protections.
- Adam Aron (UC San Diego professor) urged the city to consider the climate crisis, noting UCSD burns fracked methane producing over 200,000 tons of CO2 annually.
- John Stump said SDGE's rates are the highest nationwide and called the support "ratepayer money," not corporate charity.
- Daria Flores (San Diego 350) asked for quality agreements with climate goals, equity provisions, and public power feasibility studies.
- Penn Deal (Sunrise Movement) called for at least a one-year extension of the current agreement to allow more robust outreach and a public power feasibility study.
- Tara Hammond (Hammond Climate Solutions) said SDGE has undermined rooftop solar and community choice energy; she supported agreements no longer than three years and public power exploration.
- Alex Hahn (Sunrise Movement) argued SDGE's charitable donations are a small fraction of profits that could otherwise fund community needs.
- Shaila A (Hammond Climate Solutions) supported a feasibility study for public power, three-year agreements, and a climate equity fund.
- Heather Hofie (San Carlos) cited that over 300,000 San Diegans are behind on utility bills by almost $145 million and criticized SDGE's costs.
- Matt Vasilakis (Climate Action Campaign) urged short-term agreements with accountability, worker protections, and a public power study.
- Marie Chen (District 6) said the ITB should go before city council before being sent out for bid, noting last year's audit process "bore no teeth."
- Kip Lund asked for a plan to assess the value of SDGE's assets for potential municipalization.
- Karina Gonzalez (Hammond Climate Solutions) urged three-year agreements and a transition off fossil fuels.
- Adam Cooper (UC San Diego PhD student) said there is no path to zero carbon with a company profiting from methane gas; he endorsed public power.
- Andrew Zhao (UC San Diego PhD student) endorsed municipal power, arguing SDGE's shareholders will not stop profiting from fossil fuels.
- Melissa Elder (Sunrise Movement, environmental engineer) asked the committee to seriously consider public power while protecting utility workers with good union jobs.
Discussion Items
Presentation by Mayor's Office (Jessica Lawrence, Director of Policy; Javier Gomez, Senior Advisor of Policy and Council Affairs):
- The outreach process included a citywide survey, 12 community forums hosted by council members, community group engagement, and presentations to the Environment Committee.
- Survey results (1,300+ responses): Current system satisfaction averaged 7/10; 42.4% rated 10 (very satisfied), 12.1% rated 1 (very unsatisfied).
- Top five priorities for the electric provider: fire prevention (47.5%), decreased pollution (45.8%), no service interruptions (44%), a smarter grid (39.6%), and lower cost (38.7%).
- Top five priorities for the gas provider: decreased pollution (58.7%), no interruptions (50.5%), energy efficiency programs (46.9%), excellent customer service (42.9%), and lower cost (41.9%).
- Top considerations for the energy future: decreased pollution (51.1%), local employment (36%), local economic development (28.8%), long-term franchise agreements (27.4%), and expansion of EV charging (24.4%).
- 983 raw written comments will be provided to the council without identifying information.
- 720+ people registered for the 12 forums; common themes included short-term agreements (3-5 years), public power/municipalization, lower rates, climate action goals, equity, and local jobs.
- Environment Committee public comment: 58 callers total — 38 against a new franchise agreement, 14 in favor, 6 neither. Emails: 76 in favor, 19 against.
- Timeline: ITB to be issued mid-March 2021; bids opened in April; first city council reading in early-to-mid May; current franchise expires June 1, 2021.
Committee Member Questions and Priorities:
- Vice Chair von Wilpert asked whether San Diego Community Power would still enable 100% clean energy regardless of the franchise outcome; the mayor's office confirmed yes, and noted the city is transitioning 157 city accounts to the 100% clean energy option starting that week. She asked whether the ITB would return to council before release; the mayor's office said no, that is not in the current timeframe. Her priorities included: a franchise term no longer than five years, strong wildfire prevention language, a minimum bid paid upfront by shareholders (not ratepayers), worker safety protections, card check neutrality, billing transparency, and a better partnership with the city on right-of-way operations and climate goals.
- Councilmember LaCava asked about CPUC authority to overturn franchise terms; the mayor's office responded that it depends on what is in the agreement and that a new provider would need a CPUC license. He also asked whether there would be a negotiation period with the preferred bidder; the mayor's office indicated the ITB language is still being drafted. His priorities included local renewable generation, partnership with San Diego Community Power, a five-year term, biennial audits, a minimum bid paid upfront, and a business plan for public power.
- Councilmember Kate said he does not support a five-year term, arguing no company would invest in infrastructure over such a short period, but expressed confidence in the mayor's negotiation and stated he trusts the mayor to bring forward the best deal.
- Chair Elo-Rivera outlined three goals: get the best deal for the city, move to a zero-carbon future, and build trust through transparency and accountability. He highlighted corporate accountability as a key priority, noting SDGE is in litigation with the city over a $35.4 million breach of contract claim (the Pure Water Project) and profited $824 million in 2020. He argued the city should not enter an agreement with any entity with which it has existing litigation, called out the practice of socializing costs while privatizing profits, and stated that $36 million could fund a youth environmental corps 36 times over or pay rent for about 20,000 San Diegans.
Key Outcomes
- The committee took no formal action, as this was an informational item only; no motion was required.
- The mayor's office will issue the ITB in mid-March 2021, with bids opened in April, a first council reading in early-to-mid May, and the current franchise expiring June 1, 2021.
- Councilmembers von Wilpert, LaCava, and Elo-Rivera stated they would provide priority memos to the mayor's office; von Wilpert indicated she would send her memo the following day.
- Vice Chair von Wilpert noted a climate equity fund proposal will be considered by City Council on Tuesday, March 9, 2021.
- The committee adjourned to its next meeting on Thursday, March 18, 2021 at 1:00 PM.
Meeting Transcript
Named on the city's website, and the committee liaison has made arrangements for the public to comment using the Zoom webinar platform. We appreciate the public's cooperation. I will go over the specifics of how to join the webinar and will give details on how the public can offer their public testimony. I will now call the environment committee meeting of March 4, 2021 to order. I will now call the role. Vice Chair Marnie von Wolper. Present. Councilmember Chris Kate. Here. Councilmember Joe Locava. Here. And I am also here. Each committee is attending, each committee member is attending virtually. Also on the virtual meeting are representatives from the office of the independent budget analyst, the office of the mayor, and the city attorney's office. The public may view the meetings on public television on City TV channel 24 for Cox Communication and Time Water Cable or Channel 99 for ATT or view the meeting online by going to the City Council Committee's homepage at Sandiego.gov and selecting the City TV Live Webcast blue button on the right hand side of the page. The committee meetings will be held virtually using the Zoom webinar platform. Members of the public can offer public comment on items by accessing the Zoom webinar online using a desktop computer, laptop, tablet, or smartphone, or by calling into the meeting using a smartphone, cellular phone, or landline. The link to join the committee meeting webinar by computer, tablet, or smartphone is listed on the agenda on how to join by iPhone one tab. To join the Zoom webinar by telephone, you may dial either one 669 254 5252 when prompted. Input Webinar ID 160532 0355 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each item. When I introduce the item that you would like to comment on, you will raise your hand by either tapping the raise your hand button on your computer, tablet, or smartphone, or by pressing star nine on your phone. You will be taken in the order in which you raise your hand. You may only speak once on a particular item. When our committee consultant, Brendan Dentino indicates it is your turn to speak. He will call you by your name as it appears on the Zoom webinar attendee list, or he will read out the last four digits of your phone number if you have called into the meeting. That is how you will know it is your turn to speak. If you have joined the webinar by computer, tablet or smartphone, you will receive a pop-up notice to select to unmute your your device. If you have called, if you've called into the meeting by cell phone or landline, press star six on your phone to unmute yourself. We will review these instructions briefly again when the public comment period on an item is open. Please wait until the item you wish to speak to has been called before raising your hand to speak. If you raise your hand during a non-comment period, your hand will be lowered. When you are announced as the next speaker, please unmute yourself and offer your comments. Also, please mute the volume on your TV or computer before you begin to speak. A quorum is now present. We will now dispense with the approval of the committee actions of February 25, 2021. Do I have a motion to approve the committee actions? I will so move. Thank you. I've got a motion by Vice Chair von Wilpert and a second from Councilmember Lakaba. Uh we will now take council member questions and comments and have each council member register their vote. Please mute yourself once you've commute uh completed your comments. Committee member or excuse me, Vice Chair Von Wilbert. I have no comments or questions other than thank you so much for all the work that you have been doing as a chair of our environment committee to bring this forward, and I vote yes. Thank you, Vice Chair. Councilmember Lakaba. Uh vote yes. Thank you. And Councilmember Kate. Oh, yeah.
openpublica.com