SFPUC
Social Impact Partnership (SIP) Program
October 24, 2022
SFPUC Guiding Polices
2 SIP Program Overview
The SFPUC invites firms through the contracting process to make meaningful, positive impacts in local communities.
Under the Social Impact Partnership (SIP) program, firms voluntarily make commitments that they deliver during the term of their contract.
3 SIP Program Overview (cont.)
The SIP program began in 2011 and has been in place for over a decade.
Over 90 contracts (including professional services, alternative delivery construction, and power procurement) have included SIP.
SIP commitments have been delivered where SFPUC has
projects, contracts and operations: from Bayview/Hunter’s Point to Tuolumne County, from the Mission to East Palo Alto. 4 SIP Program Areas
5 Education:
• Supports and benefits public schools and education programs from elementary schools through college.
Environmental and Community Health:
• Supports initiatives that address environmental justice and health inequities.
Job Exposure, Awareness, and Internships:
• Supports opportunities through internships, job exposure and awareness, and removing barriers to employment.
Small Businesses:
• Supports local small businesses through a variety of services that lead to sustainability, growth, job creation, and the promotion of neighborhood economic health and wealth.
A Decade of Social Impact
6 Paid internships for young people in the
STEM fields and on our utility projects
SFUSD Teacher
Externships, to support the
incorporation of real-life
STEM concepts in the
classroom
Support for emerging
local businesses
Supporting the
next generation of
environmental
stewards
SIP Program Upgrades
In the last year, the SFPUC has:
• Implemented administrative and systems improvements
• Launched a public, interactive dashboard on website
• Began building a public registry for any interested
organization or public school to sign up
• Drafted Rules and Regulations for the program
7 SIP Program Authorization
Authorization will further ensure the delivery of commitments directly to the community through enforcement mechanisms, and outline parameters to guide the program, including:
• Contract types and thresholds
• Legal remedies for accountability
• Tools and processes to maximize transparency
Authorization by the Board of Supervisors
8 Thank you!
9 DEPARTMENT External Affairs AGENDA NO. 12
MEETING DATE October 24, 2022
APPROVAL:
COMMISSION
SECRETARY Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Social Impact Partnership Program Authorization: Regular Calendar Project Manager: Ronnie Versher
Summary of
Proposed
Commission
Action:
Authorize the SFPUC’s Social Impact Partnership (SIP) program, and request that the General Manager (a) seek formal authorization of the SIP program from the Board of Supervisors by ordinance with the proposed program parameters in Attachment A; (b) develop formal rules and regulations for the SIP program to ensure the transparent and accountable implementation and enforcement of the SIP program; and (c) staff the SIP program to effectively implement the Program.
Background: Alignment with Existing Policies:
On October 13, 2009, by Resolution No. 09- 0170, this Commission adopted an Environmental Justice Policy to affirm and commit to the goals of environmental justice to prevent, mitigate, and lessen disproportionate environmental impacts of our activities on communities in all SFPUC service areas and to ensure that public benefits are shared across all communities . The Environmental Justice Policy directs the SFPUC to work with stakeholders to identify and partner with organizations to prioritize, establish , and fund appropriate activities to improve environmental justice performance in communities already affected by disproportionate environmental impacts of SFPUC activities.
This includes San Francisco’s Southeast neighborhoods, which have historically been disproportionately affected by the environmental impacts of SFPUC activities, as recognized by the San Francisco Board of Supervisors and the State Water Resources Control Board in 1975 and 1976 during the approval process for the expansion of the Southeast Treatment Plant.
On January 11, 2011, by Resolution No. 11- 0008, this Commission adopted a Community Benefits Policy with the stated goal of developing an inclusive and comprehensive community benefits program to better serve and foster partnership with communities in all SFPUC service areas and to ensure that benefi ts are shared across all communities .
In the
Community Benefits Policy, the SFPUC committed to develop a Authorize the SFPUC’s Social Impact Partnership Program Commission Meeting Date: October 24, 2022
community benefits program that is intentional in its participation in and support of programs and projects that are designed to benefit the community, is centrally coordinated within the SFPUC, applies to all of SFPUC's operations and its activities in all SFPUC service areas, and which is sustainable, transparent, measurable, and accessible by stakeholders and SFPUC staff . SFPUC’s Community Benefits Policy defines community benefits as those positive effects on a community that result from the SFPUC's operation and improvement of its water, wastewater, and power services.
On July 14, 2020, by Resolution No. 20- 0149, this Commission adopted a Racial Justice Policy to promote equity and inclusion through, among other things, SFPUC contracting practices.
In 2011, to implement the Community Benefits Policy, informed by the Environmental Justice Policy, and following a robust communit y engagement process, SFPUC started the SIP program for participating SFPUC contractors to support communities impacted by SFPUC’s utility operations, projects, and contracts.
The SIP program invites private contractors participating in competitive processes for SFPUC eligible contracts to propose, and if awarded a contract, to commit to donations of time and/or money to 501(c)(3) nonprofits and public schools . Contractors’ SIP proposals are evaluated and scored as part of SFPUC’s contract selection process.
The SIP program has resulted in valuable contractor contributions of volunteer time and money to nonprofits and public schools . Currently, there are over 90 contracts with contractors
that have voluntarily
committed to deliver volunteer hours and financial contributions directly to communities impacted by SFPUC operations, projects, and contracts.
The SIP program is subject to formal approval by this Commission and the Board of Supervisors by ordinance.
SFPUC staff has prepared the pr oposed parameters for the SIP program in Attachment A.
Proposed Commission Action
The proposed resolution memorializes that the SFPUC’s SIP program is in alignment with and supports the implementation of the SFPUC’s Environmental Justice and Community Benefits Policies, and SFPUC’s Racial Justice Resolution . The proposed resolution formally authorizes the SIP program and its implementation . Th
e proposed Commission
action authorizes and approves the proposed SIP program parameters attached to this agenda item (Attachment A).
Authorize the SFPUC’s Social Impact Partnership Program Commission Meeting Date: October 24, 2022
The proposed resolution requests that the General Manager proceed to obtain Board of Supervisors’ approval by ordinance of the SIP program or a similar program as presented in Attachment A.
The proposed resolution also requests Staff to develop formal rules and regulations for t he SIP program to ensure the transparent, fair, and accountable implementation and enforcement of the SIP program, and update them as necessary over time.
Finally, the proposed resolution requests that the General Manager adequately staff the SIP program to effectively implement the Program.
Fiscal Impact: The SIP program requires that contractors do not bill SFPUC for delivery of their SIP commitments.
Results of
Inaction:
A delay or denial in approving this agenda item would negatively impact the SFPUC’s ability to continue to include the SIP program in new contracts after January 31, 2023.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.:
WHEREAS, The San Francisco Public Utilities Commission (SFPUC), consistent with its established policies, mission, and values seeks to have positive impacts in all communities where SFPUC has water, wastewater, and power operations, projects, and activities; and
WHEREAS, The SFPUC acknowledges that its utility operations, capital projects, contracts, and other activities, while supporting SFPUC utility systems and the health and safety of our ratepayers, also have impacts on persons, businesses, neighborhoods, and the environment; and
WHEREAS, On October 13, 2009, by Resolution No. 09- 0170, this Commission adopted an Environmental Justice Policy to affirm and commit to the goals of environmental justice to prevent, mitigate, and lessen disproportionate environmental impacts of our activities on communities in all SFPUC service areas and to ensure that public benefits are shared across all communities; and
WHEREAS, The Environmental Justice Policy directs the SFPUC to work with stakeholders to identify and partner with organizations in order to prioritize, establish and fund appropriate activities to improve environmental justice performance in communities already affected by disproportionate environmental impacts of SFPUC activities. This includes San Francisco’s Southeast neighborhoods, which have historically been disproportionately affected by the environmental impacts of SFPUC activities, as recognized by the San Francisco Board of Supervisors and the State Water Resources Control Board in 1975 and 1976 during the approval process for the expansion of the Southeast Treatment Plant; and
WHEREAS, On January 11, 2011, by Resolution No. 11- 0008, this Commission adopted a Community Benefits Policy with the stated goal of developing an inclusive and comprehensive community benefits program to better serve and foster partnership with communities in all SFPUC service areas and to ensure that benefits are shared across all communities; and
WHEREAS, In the Community Benefits Policy, the SFPUC committed to develop a community benefits program that is intentional in its participation in and support of programs and projects that are designed to benefit the community, is centrally coordinated within the SFPUC, applies to all of SFPUC's operations and its activities in all SFPUC service areas, and which is sustainable, transparent, measurable, and accessible by stakeholders and SFPUC staff; and
WHEREAS, In the Community Benefits Policy, the SFPUC defined community benefits as those positive effects on a community that result from the SFPUC's operation and improvement of its water, wastewater and power services; and
WHEREAS, On July 14, 2020, by Resolution No. 20- 0149, this Commission adopted a Racial Justice Policy to promote equity and inclusion through, among other things, SFPUC contracting practices; and
WHEREAS, In 2011, to implement the Community Benefi ts Policy, informed by the Environmental Justice Policy , SFPUC started the Social Impact Partnership (SIP) p rogram for participating SFPUC contractors to support SFPUC service area communities; and
WHEREAS, Under the SIP program, the SFPUC invites private contractors participating in competitive processes for SFPUC eligible contracts to propose, and if awarded a contract, to commit to donations of time and/or money to 501(c)(3) nonprofits and public schools; and
WHEREAS, The SIP program has resulted in valuable contractor contributions of volunteer time and money to nonprofits and public schools; and
WHEREAS, While the SFPUC has operated the SIP program for over 10 years, the SIP program is subject to formal approval by this Commission and the Board of Supervisors by ordinance; and
WHEREAS, Staff has prepared the proposed parameters for the program set forth in the attachment to this Resolution; now, therefore, be it
RESOLVED, That this Commission hereby adopts and authorizes the SIP program as set forth in the attachment to this Resolution and its implementation; and, be it
FURTHER RESOLVED, That this Commission hereby requests that the General Manager proceed to obtain Board of Supervisors’ approval by ordinance of the SIP program as presented in the attachment to this Resolution or a similar program to encourage SFPUC contractors’ support of 501(c)(3) nonprofits and public schools in locations impacted by SFPUC’s operations, projects, contracts, and activities; and, be it
FURTHER RESOLVED, That this Commission hereby requests that the General Manager develop formal rules and regulations for the SIP program to ensure the transparent, fair, and accountable implementation and enforcement of the SIP program, and update them as necessary over time; and, be it
FURTHER RESOLVED, That this Commission hereby requests that the General Manager adequately staff the SIP program to effectively implement the Program.
I hereby certify that the foregoing was adopted by the Public Utilities Commission at its meeting of October 24, 2022.
Secretary, Public Utilities Commission
Attachment A
Social Impact Partnership Program Parameters
The Social Impact Partnership (SIP) program shall be included in solicitations for professional services contracts, power procurements and construction contracts.
The SIP program shall be included in professional services contracts, procured under Chapters 6 and 21 of the San Francisco Administrative Code, with an award value of $5 million or greater.
The SIP program shall be included in the following power procurement contracts, procured under Chapter 21 of the San Francisco Administrative Code, with an award value of $5 million or greater:
• Product purchases from projects constructed in San Francisco or on property owned by the City and County of San Francisco;
• New projects where the contractor identifies an intent to construct a project, or add construction to an existing project, to produce the product purchased under the contract; and • Existing, specified projects located in California where the contract identifies the project the product is to be delivered from and the purchase does not support construction of a new project.
The SIP program shall be included in all public works or improvement contracts procured under Chapter 6 of the San Francisco Administrative Code , including, but not limite d to low -bid construction procurements, design-build ( §6.61), construction manager/general contractor ( §6.68) and best value procurement (§6.74), with an award value of $25 million or greater.
Contractors may include commitments of volunteer time and/or d irect financial contributions as part of their bids or proposals on the above contracts.
SFPUC shall evaluate each contractor’s SIP proposal during the selection process and apply adjustments in rating of a proposal or price in determining the apparent highest ranked proposal or lowest bid der, as applicable.
Contractors that receive contract awards in the above types and thresholds are required by contract agreement to fulfill the entirety of the SIP commitments by type and value originally proposed.
All SIP commitments proposed by a contractor must benefit the communities, neighborhoods, and/or residents served or impacted by the SFPUC.
If a contractor fails to deliver its SIP commitments congruent with the project’s underlying schedule it shall constitute a material breach of the terms of the c ontract. SFPUC staff shall in its sole discretion determine such failure. If SFPUC staff determines that such failure occurs, the SFPUC shall have the right to pursue available rights and remedies, including, but not limited to:
• Revoking eligibility for the award of positive SIP adjustments in points or price for future procurements in which the contractor participates;
• Assessing liquidated damages;
• Withholding progress payments;
• Withholding the release of retention; and/or
• Suspending or terminating the contract.
For contracts that include the SIP program, contractors awarded contract amendments with a dollar value increase of 10% or greater of their original award amount shall proportionally increase their SIP commitments and agree to such proportionally -increased SIP commitments in their amended agreements.
SIP commitments performed by contractors shall not be charged to the SFPUC.
SFPUC will launch a publicly available SIP registry so that any non -profit organization or public school interested in participating in the SIP program can identify itself as a potential SIP recipient and so that a potential contractor can independently and publicly identify partners for SIP program proposals.