In 2016, San Francisco enacted Administrative Code Chapter 12X. Through a multi-year effort led by founder Rich Peterson, Lighthouse guided international engineering leader Jacobs through a complex challenge of this policy.
Chapter 12X had prohibited the City from contracting with companies based in states that passed laws perceived as discriminatory. The law expanded over time to include more than 30 states, severely limiting San Francisco’s pool of potential vendors and contractors. While 12X was not actually successful in influencing the targeted states’ policies, the resultant limits on competitive bidding led to tens of millions of dollars in annual costs.
Lighthouse developed a disciplined, long-term strategy for repealing 12X. Conducting targeted outreach to City leaders – from the Mayor and Board of Supervisors to departmental heads, commissions and community stakeholders – our team educated decision-makers about the policy’s unintended consequences, built alliances with local groups, and navigated concerns from communities central to the City’s social values.
Over four years, the repeal effort moved from political limbo to a legislative priority to a successful vote in the Board of Supervisors. Companies located in all states that meet San Francisco's contracting standards may now do business with the City, increasing vendor competition and realizing annual savings that are helping reduce its significant budget challenges.
“Rich was dogged in his efforts to repeal Charter Code 12x, a well-intentioned, yet misguided law, which restricted our firm – and countless others – from doing business with the City & County of San Francisco. He helped us navigate the sensitive political landscape around this issue, working with City leaders, San Francisco’s many diverse communities, and businesses like ours that are thrilled to once again be able to compete for San Francisco’s business”
