Chapter 21F — SAN FRANCISCO PUBLIC UTILITIES COMMISSION SOCIAL IMPACT PARTNERSHIP PROGRAM.

Sec. 21F.1. Findings, Purpose, and Applicability.

Sec. 21F.2. Definitions.

Sec. 21F.3. Rules and Regulations; Conduct.

Sec. 21F.4. Contracting Process.

Sec. 21F.5. Contract Requirements.

Sec. 21F.6. Monitoring and Enforcement.

Sec. 21F.7. Preemption.

Sec. 21F.8. Undertaking for the General Welfare.

Sec. 21F.9. Severability.

(a) Findings. The City has a strong interest in protecting and promoting the local economy and natural environment, and the health and well-being of persons in the City. The City seeks to be a good neighbor to those impacted by the City’s operations and projects, and desires that its contractors likewise be good neighbors to the communities on whose behalf they are working and/or in the neighborhoods impacted by their work for the City.

(b) Purpose. The purpose of this Chapter 21F is to encourage private contractors working under certain contracts with the San Francisco Public Utilities Commission (“SFPUC”) to engage in corporate social responsibility with a focus on delivering specific community outcomes aligned with

demonstrated community needs related to the work they are performing for the SFPUC. By evaluating prospective contractors for these contracts based on their willingness to give back to communities affected by the SFPUC’s contracts, projects, and operations, the SFPUC can harness corporate resources for the benefit of local residents and neighborhoods.

(c) Applicability.

(1) As set forth in Ordinance No. 261-22, the requirements of this Chapter 21F apply to Covered Contracts first solicited on or after the operative date of that ordinance, which was April 22, 2023.

(2) The requirements of Section 21F.5(b)(1) (Contract Amendments or Modifications) apply to any Covered Contract amended or modified, regardless of the date of solicitation, provided such contract includes a Social Impact Commitment. For such Covered Contracts solicited before April 22, 2023, Section 21F.5(b)(1) applies to any amendment or modification approved on or after the effective date of the ordinance in Board of Supervisors File No.240808, enacting this subsection 21F.1(c)(2).

(Added by Ord. 261-22, File No. 221126, App. 12/22/2022, Eff. 1/22/2023, Oper. 4/22/2023; amended by Ord. 242-24, File No. 240808, App. 10/18/2024, Eff. 11/18/2024)

(Former Sec. 21F.1 added by Ord. 121-99, File No. 990405, App. 5/21/99; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)

For purposes of this Chapter 21F, the following terms have the following meanings:

“Beneficiary” means an organization that is eligible to receive a Social Impact Commitment. A Beneficiary may be: (1) a nonprofit corporation that has established and maintains valid nonprofit status under Internal Revenue Code Section 501(c)(3), as amended, and all rules and regulations promulgated under that section; (2) an organization that has a fiscal agent that is a nonprofit corporation that has established and maintains valid nonprofit status under Internal Revenue Code section 501(c)(3), as amended, and all rules and regulations promulgated under said section and which provides that organization with fiduciary oversight, financial management, and administrative services related to its operation; or (3) a public school, which may include a public school district, County Office of Education, and/or a public college or university. The following are not eligible Beneficiaries: any (1) City department, office, board, commission, or other entity, or (2) City official or employee or Relative of a City official or employee, unless the resulting benefit is incidental to and not unique to the City official or employee or Relative, but rather benefits the general public or a particular community that is the focus or target of the Social Impact Commitment.

“Bonus” means a downward adjustment of the total bid price or upward adjustment of the total rating score of a proposal, as applicable to the competitive process.

“City” means the City and County of San Francisco.

“Contractor” means any private person or entity that enters into a direct contract with the SFPUC for a Covered Contract. Public entities shall not be considered Contractors.

“Covered Contract” means one or more of the following types of contracts: (1) professional services contracts, procured under Chapters 6 and 21 of the Administrative Code, with an award value of $5 million or greater; (2) power procurement contracts, procured under Chapter 21 of the Administrative Code, with an award value of $5 million or greater, which includes (a) purchases from projects constructed in San Francisco or on

property owned by the City, (b) new projects where the Contractor identifies an intent to construct a project, or add construction to an existing project, to supply the product purchased under the contract, or (c) existing projects located in California where the contract identifies a specific project that will supply the product being purchased and the purchase does not support construction of a new project; and (3) public work or improvement contracts procured under Chapter 6 of the Administrative Code with an award value of $25 million or greater, including but not limited to competitively bid (§ 6.20), design-build (§ 6.61), construction manager/general contractor (§ 6.68), and best value (§6.74) procurements.

“Financial Interest” has the meaning set forth in the California Political Reform Act, California Government Code Section 87103, and its implementing regulations.

“Relative” has the meaning set forth in Campaign and Governmental Conduct Code Section 3.610, as amended from time to time.

“Social Impact Commitment” means a Contractor’s commitment, as proposed by the Contractor in response to a solicitation for a Covered Contract, to provide either volunteer hours or direct financial contributions to one or more Beneficiaries during the term of the Covered Contract. For the purposes of this Chapter 21F, a direct financial contribution is a monetary payment made to a Beneficiary and to no other person or entity. An in-kind donation with potential monetary value, other than volunteer hours, is not eligible as a Social Impact Commitment for any Covered Contract awarded after the enactment of this Chapter 21F.

(Added by Ord. 261-22, File No. 221126, App. 12/22/2022, Eff. 1/22/2023, Oper. 4/22/2023)

(Former Sec. 21F.2 added by Ord. 121-99, File No. 990405, App. 5/21/99; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)

(a) The SFPUC shall adopt Rules and Regulations for the implementation of the Social Impact Partnership Program in conformance with the requirements of Charter Section 4.104, which Rules and Regulations shall be consistent with this Chapter 21F and which may include procedures for exemptions and waivers. The Rules and Regulations shall provide guidance to administering staff, Contractors, and Beneficiaries for implementation and compliance with the Social Impact Partnership Program.

(b) No City department, officer, or employee, including but not limited to the SFPUC, its Commissioners, officers, and employees, shall direct or require any Contractor to donate time and/or money to any particular individual or entity. This prohibition applies from the time a solicitation for a Covered Contract is published until final payment under a Covered Contract is issued. Publicly available SFPUC solicitation instructions for identifying potential Beneficiaries, information available to all participants in a competitive process for a Covered Contract, or guidelines under the SFPUC Social Impact Partnership Program Rules and Regulations shall not be considered a violation of this prohibition.

(Added by Ord. 261-22, File No. 221126, App. 12/22/2022, Eff. 1/22/2023, Oper. 4/22/2023)

(Former Sec. 21F.3 added by Ord. 121-99, File No. 990405, App. 5/21/99; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)

(a) Minimum Requirements for Social Impact Commitments.

(1) The Contractor that receives a Covered Contract must fulfill the entirety of its Social Impact Commitment in the value originally proposed by the Contractor in its response to the Covered Contract solicitation by the Contractor in its response to the Covered Contract solicitation or as modified under Section 21F.5 below.

(2) The Contractor shall perform its Social Impact Commitment at no cost to the City. The Contractor may not charge the City, directly or indirectly, for any costs incurred in fulfilling or implementing its Social Impact Commitment.

(3) The Contractor’s funding or performance of its Social Impact Commitment may not be conditioned upon, tied to, or dependent on funds or sources of funding receivable from the SFPUC for the Covered Contract, including amounts held by the City in retention.

(4) The Contractor’s obligation to provide a Social Impact Commitment is separate from, and in addition to, any other regulatory or legal requirements under the Covered Contract, including but not limited to, the requirements of Chapters 14B, 82, and 83 of the Administrative Code.

(5) The Contractor is solely responsible to fulfill its Social Impact Commitment. A Contractor may not require a subcontractor, subconsultant, supplier, or anyone else to perform its Social Impact Commitment. The Contractor may retain entities or individuals to assist the Contractor in implementing its Social Impact Commitment so long as any cost incurred to pay those entities or individuals is not charged or otherwise passed through to the SFPUC in accordance with subsection (a)(2) above.

(6) The Contractor’s Social Impact Commitment must be fulfilled during the term of the Covered Contract. Actions taken by the Contractor before the term of the Covered Contract begins or after it ends may not count towards the fulfillment of the Social Impact Commitment for that contract, except as may be permitted under SFPUC Social Impact Partnership Program Rules and Regulations.

(7) The Contractor’s Social Impact Commitment must be performed in the geographic area(s) specified in the solicitation for the Covered Contract. The SFPUC may provide further guidance or limitation on location in its Rules and Regulations and/or individual solicitations.

(b) Social Impact Partnership Program Solicitation Requirements. In its solicitations for Covered Contracts, whether by advertisement for bids or proposals, the SFPUC is authorized to include the Social Impact Partnership program. In any such solicitation, SFPUC shall include the description and requirements for the program.

(c) Evaluation and Scoring of Proposed Social Impact Commitments. The SFPUC Social Impact Partnership Program Rules and Regulations shall establish procedures for evaluation and scoring of proposed Social Impact Commitments. Solicitations for Covered Contracts shall include evaluation criteria for Social Impact Commitment proposals and the procedure for evaluation and scoring as appropriate to the specific Covered Contract. A Social Impact Commitment proposal score shall be applied as a Bonus to the total bid price or score to determine the apparent low bidder or highest-ranked proposer as appropriate to the Covered Contract.

(Added by Ord. 261-22, File No. 221126, App. 12/22/2022, Eff. 1/22/2023, Oper. 4/22/2023)

(Former Sec. 21F.4 added by Ord. 121-99, File No. 990405, App. 5/21/99; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)

(a) Contract Requirements. Every Covered Contract that includes a Social Impact Commitment shall include provisions consistent with the following:

(1) The Contractor must save, keep, hold harmless, and fully indemnify the City and any of its officers or employees from all damages, costs, or expenses in law or equity, or claims for same, that may at any time arise from performance of Social Impact Commitments. The Contractor shall bear sole responsibility and liability, if any, for any breach of the Social Impact Partnership Program provisions of its Covered Contract or this Chapter 21F.

(2) Failure to comply with the requirements of this Chapter 21F shall constitute a material breach by the Contractor of the terms of the Covered Contract. The SFPUC in its sole discretion shall determine such failure.

(3) The SFPUC shall specify by Rule and Regulation and/or contract provision as appropriate, procedures and remedies for non-compliance with the Social Impact Partnership Program and for enforcement. Remedies may include but need not be limited to (A) revoke non-compliant Contractor’s eligibility for Social Impact Commitment Bonus on future Covered Contracts; (B) assess liquidated damages; (C) withhold progress payments; (D) withhold release of retention; and/or (E) suspend or terminate the Covered Contract.

(b) Modifications. The SFPUC Social Impact Partnership Program Rules and Regulations shall provide procedures and requirements for modifications of Social Impact Commitments within the following guidelines:

(1) Contract Amendments or Modifications. When the SFPUC modifies or amends a Covered Contract that includes a Social Impact Commitment that will result in an increase of the total value of the Covered Contract, the SFPUC shall require that the Contractor propose an increase to its Social Impact Commitment for the Covered Contract. Such increase shall (A) be proportional to the increase in contract value under the amendment or modification and (B) consistent with Section 21F.4, not increase the costs to the SFPUC.

(2) Modifications to Social Impact Commitments. In the event that fulfillment of Social Impact Commitments as provided in the Covered Contract becomes impossible or impracticable, the Contractor may request a modification to its Social Impact Commitments by documenting the impossibility or impracticability of proceeding with its existing Social Impact Commitments and proposing one or more alternatives subject to review and approval by the SFPUC as provided in the Covered Contract.

(Added by Ord. 261-22, File No. 221126, App. 12/22/2022, Eff. 1/22/2023, Oper. 4/22/2023; amended by Ord. 242-24, File No. 240808, App. 10/18/2024, Eff. 11/18/2024)

(Former Sec. 21F.5 added by Ord. 121-99, File No. 990405, App. 5/21/99; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)

(a) Reporting.

(1) The SFPUC shall establish regular reporting procedures for Contractors to follow for the purpose of monitoring compliance with this Chapter 21F. All records submitted by the Contractor for this purpose shall be accompanied by a statement of compliance signed by an authorized representative of the Contractor indicating that the records are correct and complete.

(2) The SFPUC shall publish and maintain a publicly available website dashboard reporting information about Covered Contracts and the performance of associated Social Impact Commitments.

(b) Monitoring. The SFPUC shall monitor the Contractor’s compliance with fulfilling its Social Impact Commitment.

(1) The SFPUC shall establish by Rules and Regulations an administrative procedure to monitor compliance with this Chapter 21F and to address allegations of noncompliance. All Contractors shall cooperate fully with the SFPUC in monitoring and compliance activities regarding the Covered Contract.

(2) SFPUC shall issue a report for each Covered Contract before final payment is issued to confirm compliance with the Social Impact Commitment contract requirements.

(c) Enforcement. The SFPUC shall establish by Rules and Regulations the procedures for enforcement of Covered Contract Social Impact Commitments requirements, including informal resolution and formal notice and action.

(d) Appeals. The Contractor may seek administrative appeal from the SFPUC’s imposition of a remedy for violation of the Social Impact Commitment. The SFPUC Rules and Regulations shall provide for the administrative procedures for such appeals, with a final determination to be made by a hearing officer appointed by the SFPUC General Manager who has not been involved in the solicitation, award, administration, or management of the Covered Contract.

(e) No Third Party Beneficiaries. Only the City may enforce a Covered Contract and the Social Impact Partnership Program requirements. A Beneficiary shall not be considered a third party beneficiary under any Covered Contract; no party shall have a private right of action against the City under this Chapter 21F.

(f) Distribution of Damages. If the SFPUC imposes actual or liquidated damages as a remedy against a Contractor for non-compliance, the Controller shall withhold the damages assessed until such time as either the Contractor has conceded to or acquiesced in the assessment or, in the event of an appeal, there is a determination no longer subject to judicial review. The Controller shall then deposit the amount withheld into a special account which shall be created for the sole purpose of receiving such funds. The funds deposited into this account shall be distributed by the Controller in accordance with the original Social Impact Commitments and by the process set forth in the SFPUC Social Impact Partnership Rules and Regulations.

(Added by Ord. 261-22, File No. 221126, App. 12/22/2022, Eff. 1/22/2023, Oper. 4/22/2023)

(Former Sec. 21F.6 added by Ord. 121-99, File No. 990405, App. 5/21/99; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)

Nothing in this Chapter 21F shall be interpreted or applied so as to create any requirement, power, or duty in conflict with any federal or state law. In Covered Contracts that involve the use of any funds furnished, given, or loaned by the United States or the State of California, all laws, rules, and regulations of the United States or California or of any federal or State agencies relative to the use of funds, and the conditions of any such grant, gift, or loan, or other furnishing of funds, shall prevail over the requirements of this Chapter if such laws, rules, regulations, or conditions are in conflict with this Chapter.

(Added by Ord. 261-22, File No. 221126, App. 12/22/2022, Eff. 1/22/2023, Oper. 4/22/2023)

(Former Sec. 21F.7 added by Ord. 121-99, File No. 990405, App. 5/21/99; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)

In enacting and implementing this Chapter 21F, the City is assuming an undertaking only to promote the general welfare. It is not assuming, nor is it imposing on its officers and employees, an obligation for breach of which it is liable in money damages to any person who claims that such breach proximately caused injury. In no event shall any person or entity have the right to bring an action against the City based on any alleged failure to enforce or negligent enforcement of the requirements of this Chapter.

(Added by Ord. 261-22, File No. 221126, App. 12/22/2022, Eff. 1/22/2023, Oper. 4/22/2023)

(Former Sec. 21F.8 added by Ord. 121-99, File No. 990405, App. 5/21/99; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)

If any section, subsection, sentence, clause, phrase, or word of this Chapter 21F, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of the Chapter. The Board of Supervisors hereby declares that it would have passed this Chapter and each and every section, subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this Chapter or application thereof would be subsequently declared invalid or unconstitutional.

(Added by Ord. 261-22, File No. 221126, App. 12/22/2022, Eff. 1/22/2023, Oper. 4/22/2023)

(Former Sec. 21F.9 added by Ord. 121-99, File No. 990405, App. 5/21/99; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)

(Added by Ord. 121-99, File No. 990405, App. 5/21/99; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)

(Added by Ord. 121-99, File No. 990405, App. 5/21/99; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)