Coalicion de pago justo de San Francisco

Minimum Compensation Ordinance

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      CHAPTER 12P: MINIMUM COMPENSATION

 

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    Sec. 12P.1. Title.

 

    Sec. 12P.2. Definitions.

 

    Sec. 12P.3. Minimum Compensation Components.

 

    Sec. 12P.4. San Francisco International Airport.

 

    Sec. 12P.5. Contract Requirements.

 

    Sec. 12P.5.1. Additional Contract Requirements.

 

    Sec. 12P.6. Administration and Enforcement.

 

    Sec. 12P.7. Waivers by the Agency.

 

    Sec. 12P.8. Additional Waivers by the Agency? Nonprofit Corporations.

 

    Sec. 12P.9. Special Waiver by the Public Utilities Commission.

 

    Sec. 12P.10. Waiver Through Collective Bargaining.

 

    Sec. 12P.11. City Departments to Cooperate with Agency.

 

    Sec. 12P.12. Relationship to Other Requirements.

 

    Sec. 12P.13. Report by Airport Director.

 

    Sec. 12P.14. Preemption.

 

    Sec. 12P.15. Effective Date.

 

    Sec. 12P.16. Severability.

 

    *SEC. 12P.1. TITLE.*

 

    This Chapter shall be known as the "Minimum Compensation Ordinance."

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000)

 

    *SEC. 12P.2. DEFINITIONS.*

 

    As used in this Chapter the following capitalized terms shall have

    the following meanings:

 

    (a) "Agency" shall mean the Office of Labor Standards Enforcement.

 

    (b) "City" shall mean the City and County of San Francisco.

 

    (c) "Consumer Price Index" or "CPI" shall mean the Consumer Price

    Index for urban wage earners and clerical workers for the San

    Francisco-Oakland-San Jose metropolitan statistical area.

 

    (d) "Contract" shall mean an agreement or portion of an agreement

    that provides for services to be purchased at the expense of the

    City or out of trust funds established by Charter, ordinance or

    Memorandum of Understanding ("MOU"). The term "Contract" shall

    include, without limitation, Included Subcontracts and agreements

    such as grant agreements, pursuant to which agreements the City

    grants funds to a Contractor for services (including, without

    limitation, cultural activities, performances or exhibitions) to be

    rendered to all or any portion of the public rather than to City

    government.

 

    (e) Notwithstanding the foregoing, the term "Contract" shall exclude:

 

    (1) Excluded Subcontracts;

 

    (2)(A) Any agreement with a Contractor that, together with the

    Employees of any Included Subcontractor and of any entity that is

    owned or controlled by the Contractor or which owns or controls the

    Contractor, would have twenty (20) or fewer Employees;

 

    (B) Notwithstanding subsection (e)(2)(A), for every Contract and

    Contract Amendment entered into on or after the Effective Date of

    the Amendment, the term "Contract" shall exclude any agreement with

    a Contractor that, together with the Employees of any Included

    Subcontractor and of any entity that is owned or controlled by the

    Contractor or which owns or controls the Contractor, would have five

    (5) or fewer Employees;

 

    (3) Agreements for the purchase or lease of goods or for guarantees,

    warranties, shipping, delivery or initial installation of such goods;

 

    (4) Agreements entered into pursuant to settlement of legal

    proceedings;

 

    (5) Agreements for urgent or specialized litigation requirements

    where the City Attorney's Office finds that it would be in the best

    interests of the City not to include the requirements of this Chapter;

 

    (6)(A) Agreements with any person or entity in which the cumulative

    amount of compensation payable to such person or entity under all

    agreements with a Contracting Department is less than twenty-five

    thousand dollars ($25,000.00), or fifty thousand dollars

    ($50,000.00) in the case of Nonprofit Corporations, in any fiscal

    year, provided that the agreement in question shall be deemed a

    Contract on and after the effective date of any instrument which

    causes such cumulative compensation under all agreements with a

    Contracting Department to exceed twenty-five thousand dollars

    ($25,000), or fifty thousand dollars ($50,000.00) in the case of

    Nonprofit Corporations;

 

    (B) Notwithstanding the provisions of subsection (e)(6)(A) for every

    Contract and Contract Amendment entered into on or after the

    Effective Date of the Amendment, the term "Contract" shall exclude

    Agreements with any person or entity in which the cumulative amount

    of compensation payable to such person or entity under all

    agreements with a Contracting Department is less than twenty-five

    thousand dollars ($25,000) in any fiscal year, provided that the

    agreement in question shall be deemed a Contract on and after the

    effective date of any instrument which causes such cumulative

    compensation under all agreements with a Contracting Department to

    exceed twenty-five thousand dollars ($25,000);

 

    (7) Agreements for the investment, management or use of trust assets

    where compliance with this Chapter would violate the fiduciary

    duties of the trustee;

 

    (8) Agreements entered into prior to the Effective Date (unless and

    until a Contract Amendment is entered into);

 

    (9) Agreements entered into after the Effective Date (unless and

    until a Contract Amendment is entered into) pursuant to, and within

    the scope of, bid packages or requests for proposals advertised and

    made available to the public prior to the Effective Date, which bid

    packages or requests for proposals were not amended on or after the

    Effective Date;

 

    (10) Agreements involving the expenditure by the City of grant or

    special funds (A) to the extent the application of this Chapter

    would violate or be inconsistent with the terms or conditions of the

    applicable grant agreement, or with the rules, regulations or

    instructions of the public agency administering such grant

    agreement, which terms or conditions or rules, regulations or

    instructions provide for compensation lower than the Minimum

    Compensation, provided, however, that this subsection (A) shall not

    apply to terms or conditions of a grant agreement from the State of

    California that violates or is inconsistent with California Labor

    Code Section 1205(c), and/or (B) to the extent that application of

    this Chapter would require the City to use General Fund monies to

    supplement the grants, special funds or other non-General Fund

    revenues to maintain the current level of services;

 

    (11) Agreements with a Contractor that is a public entity whose

    jurisdictional boundaries are not coterminous with those of the City;

 

    (12) Agreements for employee benefits to be provided to City

    employees, where the Director of Human Resources finds that no

    entity is willing to comply with this Chapter and is capable of

    providing the required employee benefits;

 

    (13) Agreements that require the Contractor to pay no less than the

    "prevailing rate of wage" in accordance with Section A7.204 of

    Appendix A to the City's Charter or any provision of the San

    Francisco Administrative Code, but only to the extent (A) each

    Covered Employee is covered by such requirement, and (B) such

    prevailing rate of wage is not less than the gross hourly

    compensation required under Section 12P.3(a)(i) of this Chapter;

 

    (14) Agreements for the investment of City monies where the

    Treasurer finds that requiring compliance with this Chapter will

    violate the Treasurer's fiduciary duties and for the investment of

    retirement, health or other funds held in trust pursuant to Charter,

    statute, ordinance or MOU where the official or officials

    responsible for investing or managing such funds finds that

    requiring compliance with this Chapter will violate their fiduciary

    duties;

 

    (15) Agreements made in connection with loans or grants under which

    the City, as creditor or grantor, is providing funds to be used by

    the debtor or grantee to:

 

    (A) Acquire an interest in real property on which residential

    improvements for low- or moderate-income households will be

    constructed;

 

    (B) Construct improvements owned or leased by the debtor or grantee,

    on condition that residents of the improvements qualify as low- or

    moderate-income households; or

 

    (C) Rehabilitate improvements owned or leased by the debtor or

    grantee; and

 

    (16) Agreements (including, without limitation, any lease,

    concession, franchise or easement agreement) for the exclusive use

    of real property owned by the City or of which the City has

    exclusive use, other than agreements for the use of airport property

    as set forth in Section 12P.4.

 

    (f) "Contract Amendment" shall mean the modification of a Contract

    in order to: (1) extend the term; (2) modify the total amount of

    payments due from the City under a Contract; (3) modify the scope of

    services to be performed by a Contractor; or (4) expand or relocate

    the premises covered under an airport property contract. The term

    does not include construction change orders.

 

    (g) "Contracting Department" shall mean the City department, office,

    commission or other City entity which enters into the applicable

    Contract on behalf of the City.

 

    (h) "Contractor" shall mean either:

 

    (1) The person or entity that enters into a Services Contract with

    the City; or

 

    (2) In the case of an Included Subcontract, the subcontractor who

    enters into the included Subcontract with the Contractor.

 

    (i) "Covered Employee" shall mean:

 

    (1) An Employee of a Contractor who, during the applicable Pay

    Period, performs at least four (4) hours per week during the Pay

    Period of work funded (in whole or in part) under the applicable

    Contract or on the project funded under the applicable Contract:

 

    (A) Within the geographic boundaries of the City;

 

    (B) On real property owned or controlled by the City, but outside

    the geographic boundaries of the City; or

 

    (C) Elsewhere in the United States, but only if such related work

    performed elsewhere within the United States consists of at least

    ten (10) hours per each work week during the Pay Period in question.

 

    (2) Notwithstanding the provisions of subsection (i)(1), for every

    Contract and Contract Amendment entered into on or after the

    Effective Date of the Amendment the term "Covered Employee" shall

    include an Employee of a Contractor who works elsewhere in the

    United States and who, during the applicable Pay Period, performs at

    least four (4) hours per week of work funded (in whole or in part)

    under the applicable Contract or to on the project funded under the

    applicable Contractor.

 

    (3) Employees of the In-Home Supportive Services Public Authority

    shall be covered employees as designated in Section 70.11 of this Code.

 

    (4) Notwithstanding the foregoing, the term "Covered Employee" shall

    exclude the following Employees of a Contractor that is a Nonprofit

    Corporation:

 

    (A) Any Employee who is under the age of eighteen (18) and is

    claimed as a dependent for federal income tax purposes and is

    employed as an after-school or summer Employee; or employed as a

    trainee in a bona fide training program consistent with Federal law,

    which training program enables the Employee to advance into a

    permanent position; provided, however, these exemptions only apply

    when the Employee does not replace, displace or lower the wage or

    benefits of any existing position or Employee; and,

 

    (B) Any disabled Employee of a Contractor, which disabled Employee:

    is covered by a current sub-minimum wage certificate issued to the

    Contractor by the U.S. Department of Labor; or would be covered by

    such a certificate but for the fact that the Contractor is paying a

    wage equal to or higher than the minimum wage.

 

    (5) For every Contract and Contract Amendment entered into on or

    after the Effective Date of the Amendment, the term "Covered

    Employee" shall include an Employee of a Contractor who also

    participates in the CalWorks Program, or any similar successor

    program, who during the applicable Pay Period performs any

    welfare-to-work activities considered "employment" under the Fair

    Labor Standards Act (29 U.S.C. §§ 201 et. seq.) and any applicable

    United States Department of Labor regulations or guideline, funded

    (in whole or in part) under the applicable Contract or on the

    project funded under the applicable Contract; provided, however,

    that the hourly rate of payment for these Covered Employees shall be

    set by the Executive Director of the Department of Human Services at

    the maximum rate that is in conformance with CalWorks eligibility

    criteria so that these Covered Employees maintain CalWorks

    eligibility. Prior to June 1 of each year, the Executive Director

    shall provide such rate to the Office of Labor Standards Enforcement

    for publication. This amount shall be adjusted yearly, as necessary,

    to reflect any changes in federal or state law governing CalWorks

    eligibility.

 

    (j) "Effective Date" shall mean the applicable effective date

    specified in Section 12P.15 of this Chapter.

 

    (k) "Effective Date of the Amendment" shall mean the date thirty

    (30) days after adoption of the amendment to this Ordinance

    introduced on June 19, 2007.

 

    (l) "Employee" shall mean any person who is employed by a

    Contractor, including part-time and temporary employees.

 

    (m) "Excluded Subcontract" shall mean any agreement or portion of an

    agreement between a Contractor and a person or entity who is not an

    Employee of such Contractor, which agreement or portion of an

    agreement relates to a Contract but is not an Included Subcontract.

    The term "Excluded Contract" shall include, without limitation, an

    agreement pursuant to which a Contractor obtains from such a person

    or entity goods to be used in the fulfillment of the Contractor's

    duties under the applicable Contract. The term shall also include

    agreements (including, without limitation, any lease, concession,

    franchise or easement agreement) for the exclusive use of real

    property owned by the City or of which the City has exclusive use,

    other than agreements for the use of airport property as set forth

    in Section 12P.4.

 

    (n) "Included Subcontract" shall mean an agreement or portion of an

    agreement between a Contractor and a person or entity who is not an

    Employee of such Contractor, pursuant to which such person or

    entity: (1) agrees to assist a Contractor in performing a Contract;

    or (2) agrees to assist a Contractor with a project funded by grant

    monies conveyed to the Contractor under the applicable Contract. An

    agreement to assist a Contractor shall mean an agreement to perform

    all or a portion of a component of the services covered by the

    Contract with the City.

 

    (o) "Minimum Compensation" shall mean each of the components

    required under Section 12P.3. of this Chapter.

 

    (p) "Nonprofit Corporation" shall mean a nonprofit corporation, duly

    organized, validly existing and in good standing under the laws of

    the jurisdiction of its incorporation and (if a foreign corporation)

    in good standing under the laws of the State of California, which

    corporation has established and maintains valid nonprofit status

    under Section 501(c)(3) of the United States Internal Revenue Code

    of 1986, as amended, and all rules and regulations promulgated under

    such Section.

 

    (q) "Pay Period" shall mean the applicable Contractor's regular pay

    period.

 

    (r) "Projected shortfall" shall mean that the Joint Report prepared

    by the Mayor, the Board's Budget Analyst, and the Controller

    pursuant to Section 3.6 of this Code has projected a shortfall for

    the upcoming fiscal year of 1% or more of total General fund uses.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000; Ord. 212-07,

    File No. 070921, App. 9/14/2007)

 

    *SEC. 12P.3. COMPONENTS.*

 

    (a) Minimum Compensation shall consist of each of the following:

 

    (1)

 

    (A)(i) Hourly gross compensation in the amount of nine dollars

    ($9.00) per hour.

 

    (ii) In no less than twelve (12) nor more than eighteen (18) months

    from the Effective Date, the City shall increase the hourly gross

    compensation to ten dollars ($10.00) per hour; provided, however,

    that in the case of Nonprofit Corporations and public entities, this

    adjustment shall only be made if the Joint Report issued by the

    Controller, Mayor's Budget Office, and Budget Analyst, pursuant to

    San Francisco Administrative Code Section 3.6, finds that the City

    has sufficient funds to pay the anticipated costs of the adjustment.

    A finding of "sufficient funds" shall mean that the City will not be

    required to reduce services in order to pay the anticipated costs of

    the adjustment.

 

    (iii) For each of the next three (3) years after the adjustment

    provided in Subsection (a)(ii) is made, at annual intervals, the

    City shall make an additional adjustment of two and one-half (2.5)

    percent.

 

    (B) For Contracts and Contract Amendments with parties other than

    Nonprofit Corporations or public entities entered into on or after

    the Effective Date of the Amendment, hourly gross compensation in

    the amount of ten dollars and seventy-seven cents ($10.77). In order

    to prevent inflation from eroding the value of this rate, on January

    1, 2008, the ten dollars and seventy-seven cent ($10.77) rate shall

    increase by an amount corresponding to the prior year's increase, if

    any, in the CPI. Annually thereafter on the first of January, the

    hourly gross compensation in effect for the prior calendar year

    shall increase by an amount corresponding to any prior year's

    increase in the CPI.

 

    (C)(i) For Contracts and Contract Amendments with Nonprofit

    Corporations and public entities entered into on or after the

    Effective Date of the Amendment, hourly gross compensation in the

    amount of ten dollars and seventy-seven cents ($10.77). It shall be

    the policy of the City to endeavor to maintain the hourly gross

    compensation for Contracts with Nonprofit Corporations and public

    entities equal to the rate that applies to for-profit Contractors.

    As such, this ten dollars and seventy-seven cent ($10.77) rate shall

    increase by an amount corresponding to the prior year's increase, if

    any, in the CPI. These CPI adjustments shall be made on January 1,

    2008 and every January 1 thereafter. Notwithstanding the provisions

    of this Subsection, when the Joint Report shows a projected

    shortfall, there shall be no automatic CPI increase in hourly gross

    compensation for Nonprofit Corporations and public entities as

    otherwise provided in this Subsection and the Mayor and the Board of

    Supervisors shall follow the procedures set forth in Subsections

    (C)(ii) and (iii).

 

    (ii) YEARS WITH PROJECTED BUDGET SHORTFALL. When submitting the

    annual proposed budget to the Board of Supervisors for any upcoming

    fiscal year in which there is a projected shortfall, the Mayor shall

    transmit a written report to the Clerk and to each member of the

    Board of Supervisors stating whether the proposed budget contains

    funding to pay all of the costs of the projected CPI increase for

    Nonprofit Corporations and public entities for the upcoming fiscal

    year, as well as for any prior fiscal years for which the Agency has

    granted a waiver. If the proposed budget does not contain sufficient

    funding for all of such costs, the report shall state the extent to

    which any portion of the CPI increase has been funded in the

    proposed budget and, in addition, shall set forth the basis for the

    Mayor's determination that no alternative funding sources or prudent

    reductions in City expenses were available to enable the City to pay

    the additional costs of the CPI increase for the upcoming fiscal

    year, and for any prior fiscal years for which the Agency has

    granted a waiver, without jeopardizing City operations.

 

    (iii) When the Mayor has transmitted a report to the members of the

    Board providing notice that the proposed budget does not contain

    sufficient funding to pay the additional costs of the CPI increase

    for the upcoming fiscal year for Nonprofit Corporations and public

    entities and for any prior fiscal years for which the Agency has

    granted a waiver, the Budget and Finance Committee of the Board (or

    any successor committee as determined by the President of the Board)

    shall hold a hearing before adoption of the budget to consider the

    report and whether there are alternative funding sources or prudent

    reductions in City expenses available to enable the City to pay the

    additional costs of the CPI increase for the upcoming fiscal year,

    and for any prior fiscal year for which the Agency has granted a

    waiver, without jeopardizing City operations. The Board may amend

    the budget to provide full or partial funding for the CPI increase(s).

 

    (iv) The hourly gross compensation for Nonprofit Corporations and

    public entities for the upcoming calendar year following the

    adoption of the budget shall be the rate required in the current

    calendar year, plus the amount of any CPI increase provided for in

    the budget. This rate shall apply notwithstanding the failure of the

    Mayor to make the report or the Board to conduct the hearing

    required by Subsection (C)(ii) and (iii). The Agency shall provide

    notice of the amount of hourly gross compensation for Nonprofit

    Corporations and public entities on the Agency's website. Except for

    those years in which the budget has sufficient funds to bring the

    rate for Nonprofit Corporations and public entities into parity with

    rate for for-profits, the Agency shall grant a blanket waiver

    applicable to all contracts with Nonprofit Corporations and public

    entities, which waiver shall authorize payment under such contract

    of hourly gross compensation that reflects either no CPI increase or

    only such increase as is covered by the budget. The Controller's

    Office shall provide notice to all City departments of the hourly

    gross compensation for Nonprofit Corporations and public entities as

    determined by the Agency.

 

    (v) Years with no one (1) percent projected budget shortfall. As

    provided in Subsection (a)(1)(C)(i), the hourly gross compensation

    for Nonprofit Corporations and public entities shall be adjusted in

    any year in which there is no projected budget shortfall by an

    amount corresponding to the prior year's increase, if any, in the

    CPI. When submitting the annual proposed budget to the Board of

    Supervisors for any upcoming fiscal year in which there is no

    projected shortfall but there is disparity between the rate for

    for-profit entities and for Nonprofit Corporations and public

    entities, the Mayor shall transmit a written report to the Clerk and

    to each member of the Board of Supervisors stating whether the

    proposed budget contains sufficient funding to bring the hourly

    gross compensation for Nonprofit Corporations and public entities

    into parity with the amount applicable to for-profit entities under

    Section (a)(1)(B).

 

    (vi) When the Mayor has transmitted a report to the members of the

    Board providing notice that the proposed budget does not contain

    sufficient funding to bring the hourly gross compensation for

    Nonprofit Corporations and public entities into parity with the

    amount applicable to for-profit entities, the Budget and Finance

    Committee of the Board (or any successor committee as determined by

    the President of the Board) shall hold a hearing before adoption of

    the budget to consider the report. The Board may amend the budget to

    provide full or partial funding toward such parity. If additional

    funds are provided in the budget to obtain such parity or to bring

    Nonprofit Corporation and public entities closer to such parity, the

    hourly gross compensation for such entities shall increase to the

    extent provided in the budget and the Agency shall provide notice of

    the amount of hourly gross compensation on the Agency's website.

 

    (2) Compensated time off (at the compensation rates specified in

    subsections (a)(1) of this Section) in an hourly amount that, on an

    annualized basis for a full-time employee, equals twelve (12) days

    per year. Such time off shall vest with the Covered Employee at the

    end of the applicable Pay Period and may be used, for sick leave,

    vacation or personal necessity. Notwithstanding the foregoing, if a

    Contractor reasonably determines, in good faith, that the Contractor

    cannot comply with this requirement for compensated time off, the

    Contractor shall provide the Covered Employee with a cash equivalent

    of such compensated time off.

 

    (3) Uncompensated time off in an hourly amount that, on an

    annualized basis for a full-time employee, equals ten (10) days per

    year. Such time off shall vest with the Covered Employee at the end

    of the applicable Pay Period and may be used, at the option of the

    Covered Employee, for sick leave for the illness of the Covered

    Employee or such Covered Employee's spouse, domestic partner, child,

    parent, sibling, grandparent or grandchild.

 

    (b) By December 1 of each year, the Agency shall make available at

    its office and on its website the hourly rates required by this

    Section.

 

    (c) When preparing proposed budgets and requests for supplemental

    appropriations for contract services, City departments that

    regularly enter into agreements for the provision of services by

    nonprofit corporations shall transmit with their proposal a written

    confirmation that the department has considered in its calculations

    the costs that the nonprofit corporations calculate that they will

    incur in complying with the Minimum Compensation Ordinance.

 

    (d) Subject to the budgetary and fiscal provisions of the Charter,

    it shall be the policy of the City to ensure sufficient funding to

    prevent a reduction in the services to the community provided by

    Nonprofit Corporations and public entities.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000; Ord. 212-07,

    File No. 070921, App. 9/14/2007)

 

    *SEC. 12P.4. SAN FRANCISCO INTERNATIONAL AIRPORT.*

 

    The requirements of this Chapter shall apply to a written agreement

    (including, without limitation, any lease, concession, franchise or

    easement agreement) for the exclusive use of real property that is

    owned by the City or of which the City has exclusive use, if such

    property is under the jurisdiction of the San Francisco Airport

    Commission and the term of the agreement exceeds twenty-nine (29)

    days in any calendar year, whether by single or cumulative

    instruments. If cumulative instruments cause the term of the

    agreement to exceed twenty-nine (29) days, the agreement in question

    shall be subject to this Article only on and after the effective

    date of the instrument which causes the term to exceed twenty-nine

    (29) days. The requirements of this Chapter shall also apply to (i)

    any sublease or other agreement allowing other parties the exclusive

    right to occupy or use all or any portion of the property covered by

    the agreement and (ii) any agreement between a tenant or subtenant

    and any other person or entity to perform services on the airport

    property. Contractors who have agreements covered by this Section

    shall comply with the requirements of this Chapter insofar as they

    have "Covered Employees." For purposes of this Section, "Covered

    Employee" shall mean an employee who provides at least ten (10)

    hours of work on the property that is the subject of the agreement

    in a two-week Pay Period, adjusted proportionately if the Pay Period

    is other than two (2) weeks. Notwithstanding the provisions of this

    Section, all exemptions and waivers from the requirements of this

    Chapter that apply to Contracts shall also apply to agreements for

    the use of airport property described in this Section, except that

    the exemption in Section 12P.2(e)(16) does not apply to agreements

    for the use of real property owned by the City or of which the City

    has exclusive use if the property is under the jurisdiction of the

    San Francisco Airport Commission. Except as otherwise specifically

    provided, all requirements of this Chapter, and the monitoring and

    enforcement mechanisms provided in this Chapter, shall apply to

    agreements covered by this Section.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000; Ord. 212-07,

    File No. 070921, App. 9/14/2007)

 

    *SEC. 12P.5. CONTRACT REQUIREMENTS.*

 

    Every Contract or Contract Amendment entered into on or after the

    Effective Date shall provide as follows:

 

    (a) For each hour worked by a Covered Employee during each Pay

    Period during the term of the Contract (as such term may be extended

    from time to time), Contractor shall provide to such Covered

    Employee no less than the Minimum Compensation as required in this

    Chapter.

 

    (b) Failure to comply with the foregoing requirement shall

    constitute a material breach by Contractor of the terms of the

    Contract. Such failure shall be determined by the City in its sole

    discretion.

 

    (c) If, within thirty (30) days after the Contractor receives

    written notice of such a breach, Contractor fails to cure such

    breach or, if such breach cannot reasonably be cured within such

    period of thirty (30) days, Contractor fails to commence efforts to

    cure within such period, or thereafter fails diligently to pursue

    such cure to completion, the City shall have the right to pursue any

    rights or remedies available under the terms of the Contract or

    under applicable law.

 

    (d) The Contractor shall not discharge, reduce in compensation, or

    otherwise discriminate against any Employee for complaining to the

    City with regard to the employer's compliance or anticipated

    compliance with this Chapter, for opposing any practice proscribed

    by this Chapter, for participating in proceedings related to this

    Chapter, or for seeking to assert or enforce any rights under this

    Chapter by any lawful means.

 

    (e) The Contractor represents and warrants that it is not an entity

    that was set up, or is being used, for the purpose of evading the

    intent of this Chapter.

 

    (f) The Contractor shall keep itself informed of the current Minimum

    Compensation, and shall provide prompt written notice to all Covered

    Employees of annual adjustments to the Minimum Compensation, as well

    as any written communications received by the Contractor from the

    City, which communications are marked to indicate that they are to

    be distributed to Covered Employees.

 

    (g) The Contractor shall maintain employee and payroll records in

    compliance with the California Labor Code and Industrial Welfare

    Commission orders. Where a Contractor does not maintain or retain

    such records, or does not allow the Agency reasonable access to such

    records, it shall be presumed that the Contractor paid no more than

    the minimum wage required under State law. The Contractor shall have

    the burden of overcoming the presumption by clear and convincing

    evidence.

 

    (h) The Contractor shall provide reports to the City in accordance

    with any reporting standards promulgated by the Agency.

 

    (i) The Contractor shall provide the City with access to pertinent

    records after receiving a written request to do so and being

    provided at least five (5) business days to respond.

 

    (j) The Agency may conduct random audits of Contractors. Random

    audits shall be (1) noticed in advance in writing; (2) limited to

    ascertaining whether Covered Employees are paid at least the minimum

    compensation required by this Article; (3) accomplished through an

    examination of pertinent records at a mutually agreed upon time and

    location within ten (10) days of the written notice; and (4) limited

    to one (1) audit per Contractor every two (2) years for the duration

    of the Contract. Nothing in this Section shall be deemed to

    interfere with the authority of the Agency to investigate any report

    of an alleged breach of contract as provided in Section 12P.6.

 

    (k) Any Contractor subject to the provisions of this Chapter shall

    promptly notify the Contracting Department of any subcontractors

    performing services covered by this Chapter and shall certify to the

    Contracting Department that it has notified the subcontractors of

    their obligations under this Chapter.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000; Ord. 212-07,

    File No. 070921, App. 9/14/2007)

 

    *SEC. 12P.5.1. ADDITIONAL CONTRACT REQUIREMENTS.*

 

    Every contract and contract amendment entered into on or after the

    effective date of the amendment, shall include the provisions set

    forth below, in addition to those requirements set forth in Section

    12P.5. Where a conflict exists, the provisions of this section

    supersede those of Section 12P.5.

 

    (a) Failure to comply with the requirements of this chapter shall

    constitute a material breach by contractor of the terms of the

    contract. The city in its sole discretion shall determine such failure.

 

    (b) If a contractor fails to comply with the requirements of this

    chapter, the city shall have the right to pursue any rights or

    remedies available under this chapter, under the terms of the

    contract, and under applicable law, consistent with the procedures

    set forth in Section 12P.6.2.

 

    (c) In order to monitor and determine compliance with this chapter,

    employees and agents of the city authorized to assist in the

    administration and enforcement of this chapter, including employees

    and agents of the agency, shall have the right to (1) engage in

    inspections of a contractor's job sites and conduct interviews with

    a contractor's employees and (2) conduct audits of contractors,

    provided that the city gives notice in advance of such audits and

    the audits are accomplished through an examination of pertinent

    records at a mutually agreed upon time and location within ten (10)

    days of the written notice.

 

    (d)(1) Contractor may not interfere with, restrain, or deny the

    exercise of, or the attempt to exercise, any right protected under

    this chapter.

 

    (2) Contractor may not discharge, threaten to discharge, demote,

    suspend, or in any manner discriminate or take adverse action

    against any person in retaliation for exercising rights protected

    under this chapter. Such rights include, but are not limited to, the

    right be paid the minimum compensation; the right to use compensated

    and uncompensated time off pursuant to this chapter; the right to

    file a complaint or inform any person about any alleged violation of

    this chapter; the right to cooperate with the agency in its

    investigations of alleged violations of this chapter; and the right

    to inform any person of his or her potential rights under this chapter.

 

    (3) Contractor may not implement any absence control policy to count

    compensated or uncompensated leave taken under this chapter as an

    absence that may lead to or result in discipline, discharge,

    demotion, suspension, or any other adverse action.

 

    (4) The provisions of this subsection (d) apply to any person who

    mistakenly but in good faith alleges violations of this chapter.

 

    (5) If the contractor takes any adverse action against any person

    within 90 days of the person's doing any of the following, such

    adverse action shall raise a rebuttable presumption that the

    contractor has engaged in retaliation against the person for the

    exercise of one or more of the rights set forth in this Subsection

    (d): filing a complaint with the agency or a court alleging a

    violation of any provision of this chapter, informing any person

    about an employer's alleged violation of this chapter; cooperating

    with the agency or other persons in the investigation or prosecution

    of any alleged violation of this chapter; opposing any policy,

    practice, or act that is unlawful under this chapter; or informing

    any person of his or her rights under this chapter.

 

    (Ord. 212-07, File No. 070921, App. 9/14/2007; Added by Ord. 226-07,

    File No. 071193, App. 10/2/2007)

 

    *SEC. 12P.5.1. ADDITIONAL CONTRACT REQUIREMENTS.*

 

    Every Contract and Contract Amendment entered into on or after the

    Effective Date of the Amendment, shall include the provisions set

    forth below, in addition to those requirements set forth in Section

    12P.5. Where a conflict exists, the provisions of this Section

    supersede those of Section 12P.5.

 

    (a) Failure to comply with the requirements of this Chapter shall

    constitute a material breach by Contractor of the terms of the

    Contract. The City in its sole discretion shall determine such failure.

 

    (b) If a Contractor fails to comply with the requirements of this

    Chapter, the City shall have the right to pursue any rights or

    remedies available under this Chapter, under the terms of the

    Contract, and under applicable law, consistent with the procedures

    set forth in Section 12P.6.2.

 

    (c) In order to monitor and determine compliance with this Chapter,

    employees and agents of the City authorized to assist in the

    administration and enforcement of this Chapter, including employees

    and agents of the Agency, shall have the right to (1) engage in

    inspections of a Contractor's job sites and conduct interviews with

    a Contractor's employees and (2) conduct audits of Contractors,

    provided that the City gives notice in advance of such audits and

    the audits are accomplished through an examination of pertinent

    records at a mutually agreed upon time and location within ten (10)

    days of the written notice.

 

    (Added by Ord. 212-07, File No. 070921, App. 9/14/2007)

 

    *SEC. 12P.6. ADMINISTRATION AND ENFORCEMENT.*

 

    (a) The Agency shall monitor Contractors for compliance with the

    requirements of this Chapter and investigate complaints of

    violations. The Agency shall promulgate guidelines or rules for the

    administration of this Chapter. Such guidelines and rules shall not

    be adopted finally by the Agency until the Agency has held a public

    hearing. The guidelines and rules shall establish procedures for

    monitoring Contractors, receiving and investigating complaints, and

    determining whether a Contractor has breached a Contract based on

    the Minimum Compensation requirements of this Chapter. The

    guidelines and rules shall also establish procedures permitting

    Contractors to provide payroll information in confidence to the City

    for purposes of monitoring compliance under this Chapter and

    authorizing disclosure of the information by the City only when

    necessary for enforcement purposes. Upon the request of a

    Contracting Department, the Agency shall also issue a determination

    as to whether a particular instrument constitutes a Contract or

    agreement is subject to the requirements of this Chapter. The Agency

    shall report annually on compliance with this Chapter to the Board

    of Supervisors. Such report shall include cumulative information

    regarding the number of waivers granted by the Agency pursuant to

    Sections 12P.7 and 12P.8 of this Chapter and statistical data

    regarding such waivers.

 

    (b) If the Agency determines that a Contractor is in breach of any

    term required to be contained in the Contract under this Chapter,

    the Agency shall notify the Contracting Department of its findings

    and of any action that the Agency requests the Contracting

    Department to take with respect to such breach. In order to ensure

    compliance with this Chapter and to enhance the monitoring

    activities of the Agency, the City desires to encourage reporting by

    Covered Employees of any breach. The Agency shall investigate any

    such report, The Agency shall keep confidential, to the maximum

    extent permitted by applicable laws, the Covered Employee's name and

    other identifying information.

 

    (c) In addition to any other rights or remedies available to the

    City under the term of the Contract or under applicable law, the

    City shall have the following rights, in the event of such failure

    by the Contractor:

 

    (1) The right, at the discretion of the Agency, to charge the

    Contractor an amount equal to the difference between the Minimum

    Compensation levels required by this Chapter and any compensation

    actually provided to each Covered Employee who was not paid in

    accordance with the terms of this Chapter, together with simple

    annual interest of ten (10) percent on such amount from the date

    payment was due;

 

    (2) The right, at the discretion of the Agency, to set off all or

    any portion of the amount described in the preceding clause (1) of

    this Subsection against amounts due to Contractor under the Contract;

 

    (3) The right, at the discretion of the Contracting Department, to

    terminate the Contract in whole or in part;

 

    (4) In the event of a breach by Contractor of the covenant referred

    to in Section 12P.5(d), the right, at the discretion of the Agency,

    to require reinstatement of the affected Covered Employee and, if

    necessary, seek a court order for such reinstatement or to obtain

    other appropriate equitable relief and, in addition, to require

    payment of any wages lost because of the Contractor's discriminatory

    or retaliatory action, together with simple annual interest of up to

    ten (10) percent from the date payment should have been made; and

 

    (5) The right, at the discretion of the Agency or the Contracting

    Department, to bar a Contractor from entering into future contracts

    with the City for three (3) years.

 

    (6) The City may bring a civil action against the Contractor to

    pursue the remedies provided by this Chapter and other applicable

    law. The prevailing party shall be entitled to all costs and

    expenses, including reasonable attorneys' fees.

 

    Each of these rights shall be exercisable individually or in

    combination with any other rights or remedies available to the City.

    Any amounts realized by the City pursuant to this subsection shall

    be paid to each applicable Covered Employee.

 

    When this Chapter authorizes the Agency to charge interest, in

    determining the appropriate amount to charge the Agency shall give

    due consideration to the size of the Contractor's business, the

    Contractor's good faith, the gravity of the violation, and the

    history of previous violations.

 

    (d) Each Covered Employee shall be a third-party beneficiary under

    the Contract as set forth in this subsection and in subsection (e)

    of this Section, and may pursue the following remedies in the event

    of a breach by the Contractor of any contractual covenant described

    in Section 12P.5(a) or Section 12P.5(d), but only after the Covered

    Employee has provided the notice and participated in the

    administrative review hearing provided in this subsection. The

    Covered Employee shall give written notice of a breach to the

    Contractor and to the Agency. If the Agency and the Contracting

    Department determine that no breach has occurred, or if the

    Contracting Department fails to obtain the cure of a breach by the

    Contractor within sixty (60) days after receipt of notice by the

    Covered Employee, the Covered Employee may request an administrative

    review hearing. The Covered Employee must request such a hearing

    within ninety (90) days after giving written notice of the breach.

    Unless the Covered Employee withdraws the request for a hearing, the

    Agency shall conduct, or arrange to have conducted, a hearing. The

    Employee shall have the right to attend the hearing personally or

    through a designated representative. The Agency shall notify the

    Contractor of the hearing so that the Contractor may attend and

    present evidence. After the hearing is completed, the person

    conducting the hearing shall determine whether the Contractor has

    breached the Contract. Upon the issuance of a written decision

    finding a breach, and after a waiting period of twenty-one (21)

    days, the Covered Employee may bring an action against the

    Contractor for such breach in the Superior Court of the State of

    California, as appropriate, unless the City has commenced an action

    against the Contractor based on the breach, or obtained compliance,

    within the twenty-one-day waiting period and provided notice to the

    Covered Employee of that action. If the Covered Employee prevails in

    such action, the Covered Employee may be awarded: (1) an amount

    equal to the difference between the Minimum Compensation and any

    compensation actually provided to the Covered Employee, together

    with simple annual interest of ten (10) percent on such amount from

    the date payment was due; and (2) in the event of a breach by

    Contractor of the covenant referred to in Section 12P.5(d), the

    right to seek reinstatement or to obtain other appropriate equitable

    relief.

 

    (e) In the event of any legal action or proceeding between

    Contractor and a Covered Employee arising from this Agreement, the

    unsuccessful party to such action or proceeding shall pay to the

    prevailing party all costs and expenses, including reasonable

    attorneys' fees and disbursements, incurred by such prevailing party

    in such action or proceeding and in any appeal in connection with

    such action or proceeding; provided, however, that a Contractor

    shall be entitled to such costs and expenses only if the court

    determines that the Covered Employee's action or proceeding was

    frivolous, vexatious or otherwise an act of bad faith. If such

    prevailing party recovers a judgment in any such action, proceeding

    or appeal, such costs, expenses and attorneys' fees and

    disbursements shall be included in and as a part of such judgment.

 

    (f) The City shall maintain the confidentiality of payroll

    information obtained in the course of monitoring compliance with

    this Chapter and shall disclose such information only as necessary

    for enforcement purposes.

 

    (g) The Agency shall develop a procedure for obtaining an assurance

    from Contractors when they sign an agreement subject to this Chapter

    that they comply with the requirements of this Chapter, such as the

    signing of an affidavit of compliance.

 

    (h) The Agency may compromise and settle unlitigated claims that

    Contractors have violated the requirements of this Chapter,

    including Contractors that have agreements for real property as set

    forth in Section 12P.4.

 

    (i) All Contractors and Contracting Departments shall cooperate

    fully with the Agency in connection with any investigation of an

    alleged violation of this Chapter or with any inspection conducted

    by the Agency.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000; Ord. 212-07,

    File No. 070921, App. 9/14/2007)

 

    *SEC. 12P.6.1. LIQUIDATED DAMAGES.*

 

    Every Contract and Contract Amendment entered into on or after the

    Effective Date of the Amendment shall contain a provision in which

    the Contractor agrees:

 

    (a) To be liable to the City for liquidated damages as provided in

    this Section;

 

    (b) To be subject to the procedures governing enforcement of a

    breach of the terms of a Contract, which terms are required by this

    Chapter, as set forth in Section 12P.6.2;

 

    (c) That Contractor's commitment to pay the Minimum Compensation as

    required in this Chapter is a material element of the City's

    consideration for the Contract and that the failure of Contractor to

    comply will cause significant and substantial harm to the City and

    the public which is extremely difficult to determine or quantify,

    and that the liquidated damages set forth in this Section are

    reasonable amounts to pay for the harm caused by the Contractor's

    non-compliance;

 

    (d) That for any failure to provide the required Minimum

    Compensation (hourly wage and time off), the Agency may require the

    Contractor to pay the City liquidated damages of up to one hundred

    dollars ($100.00) for each one-week pay period for each employee not

    provided the required compensation. The Agency shall adjust this

    amount proportionately for Contractors that use a pay period other

    than one (1) week;

 

    (e) That for any failure to provide reports to the City or access to

    pertinent records, or any failure to cooperate with any audit,

    inspection or investigation conducted by the Agency, the Agency may

    require the Contractor to pay the City liquidated damages of up to

    one thousand dollars ($1,000.00);

 

    (f) That while liquidated damages in the maximum amounts set forth

    in this Section are a reasonable estimate of the harm caused by the

    Contractor's non-compliance with contractual provisions required by

    this Chapter, the Agency may determine that less than the full

    amount is warranted depending on the circumstances of each case. The

    Agency shall give due consideration to the following factors in

    determining the amount of liquidated damages: the size of the

    Contractor's business, the Contractor's good faith, the gravity of

    the violation, the history of previous violations, the failure to

    comply with record-keeping, reporting, anti-retaliation or other

    non-wage requirements, and the extent to which the imposition of

    liquidated damages would undermine the purpose of this Chapter by

    imposing unreasonable financial burdens on the Contractor, thereby

    restricting its ability to fulfill its obligations under this Chapter.

 

    (Added by Ord. 212-07, File No. 070921, App. 9/14/2007)

 

    *SEC. 12P.6.2. INVESTIGATION AND DETERMINATION OF VIOLATIONS.*

 

    (a) Determination of Violation. Upon determining that a Contractor

    may have violated the terms of a Contract required under this

    Chapter, the Agency shall send written notice to the Contractor of

    the possible violation and of the Contractor's right to respond to

    the Agency's initial determination by submitting pertinent documents

    and other information. The written notice shall also notify the

    Contractor that the Agency is authorized to direct the Controller to

    withhold payment otherwise due to the Contractor pursuant to the

    provisions of subsection (e). If after providing the Contractor with

    a reasonable opportunity to respond to the allegations the Agency

    makes a final determination that a violation has occurred, the

    Agency shall provide a written notice of violation to the Contractor.

 

    (b) Right to Appeal. The Contractor may appeal the Agency's final

    determination. The Contractor must file an appeal with the Agency in

    writing, specifying the basis for contesting the determination, no

    later than fifteen (15) days after the date of the notice of

    determination. Failure to file an appeal in writing with the

    Controller within fifteen (15) days shall cause the Agency's

    determination to be deemed a final administrative decision by the City.

 

    (c) Administrative Hearing.

 

    (1) Within fifteen (15) days after the Agency receives an appeal,

    the Controller shall appoint a hearing officer and shall notify the

    Agency and the Contractor.

 

    (2) The hearing officer shall promptly set a date for a hearing. The

    hearing shall commence within forty-five (45) days of the

    notification of the appointment of the hearing officer and conclude

    within seventy-five (75) days of such notification, unless all

    parties agree to an extended period.

 

    (3) The Agency shall have the burden of producing evidence that the

    Contractor has violated the requirements of this Chapter and the

    burden of proving the violation.

 

    (d) Hearing Officer's Decision.

 

    (1) Within thirty (30) days of the conclusion of the hearing, the

    hearing officer shall issue a written decision consisting of

    findings and a decision affirming, modifying, or vacating the

    Agency's determination. If the hearing officer vacates the Agency's

    determination in its entirety, that decision shall also vacate any

    assessment of liquidated damages. If the hearing officer affirms the

    Agency's determination, the hearing officer shall issue a decision

    upholding the Agency's determination, including the amount of the

    liquidated damages assessed by the Agency. With respect to

    liquidated damages, the hearing officer's jurisdiction to modify the

    Agency's assessment is limited and the following procedures apply.

    If the hearing officer modifies the Agency's determination, the

    hearing officer shall transmit the decision to the Agency, which

    shall within five (5) business days modify the assessment of

    liquidated damages consistent with the hearing officer's decision

    based on the criteria set forth in Section 12P.6.1 and transmit the

    modified assessment to the hearing officer. Upon receiving the

    modified assessment from the Agency, the hearing officer shall

    within three (3) business days issue a final decision which shall

    include the amount of the liquidated damages assessment as modified

    by the Agency.

 

    (2) The decision of the hearing officer shall be final. The

    Contractor may seek review of the hearing officer's decision only by

    filing in the San Francisco Superior Court a petition for a writ of

    mandate under California Code of Civil Procedure, section 1094.5, as

    may be amended from time to time.

 

    (3) The failure of the Controller or hearing officer to comply with

    the time requirements of this Section shall not cause the Controller

    or the hearing officer to lose jurisdiction over an appeal from the

    Agency's determination filed under this Section.

 

    (4) Upon receiving the hearing officer's decision affirming or

    modifying the Agency's determination, the Contractor shall take the

    corrective action, including the payment of liquidated damages, if

    any, within fourteen (14) days of receiving the hearing officer's

    decision. If a Contractor fails to take corrective action within the

    time required by the provisions of this Section, the City may

    immediately pursue all available remedies against the Contractor.

 

    (e) Withholding of Payments by Controller.

 

    (1) When the Agency sends notice to a Contractor under Section

    12P.6.2(a) of its final determination that the Contractor has

    violated the requirements of this Chapter and of the Contractor's

    right of appeal to the Controller, the Agency may direct the

    Contracting Department and the Controller to deduct from the payment

    or payments otherwise due to the Contractor the amounts that the

    Agency has determined the Contractor must pay to Covered Employees

    for violation of this Chapter and to the City for liquidated

    damages. The Controller, in issuing any warrant for any such

    payment, shall deduct the amounts specified by the Agency.

 

    (2) The Controller shall withhold these funds until (A) the hearing

    officer issues a decision finding that the Contractor does not owe

    all or a portion of the amount withheld, in which case the

    Controller shall release funds to the Contractor consistent with the

    hearing officer's decision or (B) the Contractor consents to the use

    of the funds to pay Covered Employees and/or the City the amounts

    that the Agency or hearing officer found due. As to any funds being

    withheld for which neither (A) nor (B) applies, the Controller shall

    retain the funds until the hearing officer's decision is no longer

    subject to judicial review, at which time the Controller shall

    distribute the funds as provided in subsection (e)(3) of this

    Section, provided that this action is consistent with any final

    determination of a court of competent jurisdiction. Notwithstanding

    the provisions of this subsection, the Agency may authorize the

    release of payments withheld from the Contractor under this Section

    if the Agency determines that the continued withholding of funds

    imposes a substantial risk of endangering public health or safety,

    interfering with a service or project that is essential to the City,

    or having an unreasonable adverse financial impact on the City.

 

    (3) The Controller shall distribute amounts withheld from

    Contractors under this Section in the following order:

 

    (A) The Agency shall make its best efforts to distribute any amounts

    that are determined due to the Contractor's Covered Employees to

    those individuals, or may require the Contractor to do so. The

    Controller shall hold the balance of any such amounts for Covered

    Employees whom the Agency and Employer, despite best efforts, cannot

    locate. Funds held for at least two (2) years shall be deposited in

    the City's General Fund.

 

    (B) Sums imposed as liquidated damages shall be deposited in the

    City's General Fund.

 

    (Added by Ord. 212-07, File No. 070921, App. 9/14/2007)

 

    *SEC. 12P.7. WAIVERS BY THE AGENCY.*

 

    The Agency shall waive the requirements of this Chapter where the

    Contracting Department has certified in writing to the Agency, and

    the Agency has found that:

 

    (a) The needed services under the applicable Services Contract are

    available only from a sole source; and the prospective Contractor is

    not currently disqualified from doing business with the City or any

    other governmental agency; or

 

    (b) Pursuant to Chapters 6 and 21 of the Administrative Code, the

    Contract is necessary to respond to an emergency which endangers the

    public health or safety; and no entity that complies with the

    requirements of this Chapter and is capable of responding to the

    emergency is immediately available to perform the required services; or

 

    (c) There are no qualified responsive bidders or prospective vendors

    that comply with the requirements of this Chapter; and the Contract

    is for a service, project, or property that is essential to the City

    or the public; or

 

    (d) The Services to be purchased are available under a bulk

    purchasing arrangement with a federal, state or local governmental

    entity; purchase under such arrangement will substantially reduce

    the City's cost of purchasing such Services; and purchase under such

    an arrangement is in the best interest of the City or the public.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000; Ord. 212-07,

    File No. 070921, App. 9/14/2007)

 

    *SEC. 12P.8. ADDITIONAL WAIVERS BY THE AGENCY? NONPROFIT CORPORATIONS.*

 

    (a) A Nonprofit Corporation may seek a waiver from the requirements

    of Section 12P.3(a)(1) if the highest paid managerial position in

    the organization earns a salary which, when calculated on an hourly

    basis, is not more than six (6) times the lowest wage paid by the

    organization to a Covered Employee. The Nonprofit Corporation shall

    provide to the Contracting Department a written statement, prepared

    and signed by the Nonprofit Corporation, setting forth an

    explanation of the economic hardship to the Nonprofit Corporation or

    the negative impact on services that would result from compliance

    with this Chapter. If the Contracting Department determines that the

    written explanation is adequate to justify the waiver and that

    substantial evidence supports the written explanation, it shall

    recommend the requested waiver to the Agency. The Agency shall grant

    the requested waiver. Each waiver shall be effective for a period of

    up to one (1) year, and subsequent waivers may be requested and

    granted.

 

    (b) If City's budget contains funding for all or a portion of a CPI

    increase for Nonprofit Corporations for the fiscal year, but a

    Nonprofit Corporation does not receive an adequate increase in its

    contract allocation to pay for the CPI increase for the fiscal year,

    the Nonprofit Corporation may seek a one-year waiver from the CPI

    increase or from that portion of the CPI increase that is unfunded.

    The Nonprofit Corporation shall provide to the Contracting

    Department a written statement, prepared and signed by the Nonprofit

    Corporation, demonstrating that it has not received adequate

    funding. The Contracting Department shall report to the Agency

    whether the Nonprofit Corporation received from the Contracting

    Department an increase in its contract allocation to pay for the CPI

    increase and, if it received funding to pay only a portion of the

    CPI increase, what portion of the increase was funded. If the

    Department has not provided adequate funding to the Nonprofit

    Corporation for the full CPI increase, it shall explain the reason

    in its statement to the Agency. If the Department certifies that the

    Nonprofit Corporation did not receive an adequate increase in its

    contract allocation to pay for the CPI increase, the Agency shall

    grant a one-year waiver from the CPI increase or the unfunded

    portion of the increase as reported by the Contracting Department.

    Each waiver shall be effective for a period of up to one (1) year,

    and subsequent waivers may be requested and granted.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000; Ord. 212-07,

    File No. 070921, App. 9/14/2007)

 

    *SEC. 12P.9. SPECIAL WAIVER BY THE PUBLIC UTILITIES COMMISSION.*

 

    The General Manager of the Public Utilities Commission may waive the

    requirements of this Chapter where the Contractor is providing to or

    on behalf of the San Francisco Public Utilities Commission services

    relating to:

 

    (a) The provision, conveyance or transmission of wholesale or bulk

    water, electricity or natural gas; or

 

    (b) Ancillary requirements such as spinning reserve, voltage

    control, or loading scheduling, as required for ensuring reliable

    services in accordance with good utility practice; provided,

    however, that:

 

    (1) The purchase of such services may not practically be

    accomplished through the City's standard competitive bidding

    procedures; and

 

    (2) The Contractor is not providing direct, retail services to end

    users within the geographic boundaries of the City.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000; Ord. 212-07,

    File No. 070921, App. 9/14/2007)

 

    *SEC. 12P.10. WAIVER THROUGH COLLECTIVE BARGAINING.*

 

    All or any portion of the applicable requirements of this Chapter

    may be waived in a bona fide collective bargaining agreement,

    provided that such waiver is explicitly set forth in such agreement

    in clear and unambiguous terms.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000)

 

    *SEC. 12P.11. CITY DEPARTMENTS TO COOPERATE WITH AGENCY.*

 

    All City departments shall cooperate with the Agency by providing

    such information and assistance as the Agency shall request with

    respect to implementation of this Chapter.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000)

 

    *SEC. 12P.12. RELATIONSHIP TO OTHER REQUIREMENTS.*

 

    This Chapter provides a minimum level of compensation and shall not

    be construed to preempt or otherwise affect any other law,

    regulation or requirement providing a higher level of compensation.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000)

 

    *SEC. 12P.13. REPORT BY AIRPORT DIRECTOR.*

 

    One year after the Effective Date, the Airport Director shall

    prepare a written report assessing the impact of this Chapter on

    Airport property contracts, including any economic impact, benefits,

    and recommended changes. The Airport Director shall submit the

    report to the Clerk of the Board, who shall schedule a hearing

    before the appropriate committee to consider the report.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000)

 

    *SEC. 12P.14. PREEMPTION.*

 

    Nothing in this Chapter shall be interpreted or applied so as to

    create any power or duty in conflict with any federal or State law.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000)

 

    *SEC. 12P.15. EFFECTIVE DATE.*

 

    This Chapter shall become effective 30 days after it is adopted.

    This Chapter is intended to have prospective effect only.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000)

 

    *SEC. 12P.16. SEVERABILITY.*

 

    If any part or provision of this Chapter, or the application of this

    Chapter to any person or circumstance, is held invalid, the

    remainder of this Chapter, including the application of such part or

    provisions to other persons or circumstances, shall not be affected

    by such a holding and shall continue in full force and effect. To

    this end, the provisions of this Chapter are severable.

 

    (Added by Ord. 216-00, File No. 001272, App. 8/9/2000)