San Francisco County Municipal Code Ch. 21 Acquisition of Commodities and Services

Sec. 21.01. Scope of Chapter. Sec. 21.02. Definitions. Sec. 21.03. General Authority of the Purchaser of Supplies. Sec. 21.04. Direct Purchasing Authority of Departments. Sec. 21.05. Powers of Departments. Sec. 21.06. Electronic Transactions. Sec. 21.07. Acquisition of Surveillance Technology. Sec. 21.1. Competitive Solicitation Required. Sec. 21.2. Advertising Solicitations. Sec. 21.3. Competitive Sealed Bidding. Sec. 21.4. Invitations for Competitive Proposals or Qualifications. Sec. 21.5. Other Purchases. Sec. 21.6. When No Valid Offers Are Received; Multiple Low Offers. Sec. 21.7. Rejection and Readvertising for Proposals. Sec. 21.8. Multiple Award Contracts. Sec. 21.9. Multiple Year Contracts; Options to Extend or Renew. Sec. 21.10. Bond May Be Required. Sec. 21.11. Bid Security. Sec. 21.12. Approval of Sureties. Sec. 21.13. Procedure upon Failure to File Required Bond. Sec. 21.14. Contractors Required to Obtain Business Tax Registration Certificate. Sec. 21.15. Emergency Procurement Procedures. Sec. 21.16. Use of Cooperative Purchasing Agreements and Procurements Conducted by or for the Benefit of Other Public Entities; Solicitations for Multiple Departments. Sec. 21.17. Contracts to Be in Writing. Sec. 21.18. Contracts to Be in Triplicate; Disposition of Contracts. Sec. 21.19. Contract Terms – Guaranteed Maximum Costs. Sec. 21.20. Contract Terms – Insurance. Sec. 21.21. Contract Terms – Infringement Indemnity. Sec. 21.22. Contract Terms – Assignment. Sec. 21.23. Contract Terms – Incidental Damage Waivers; Liability Caps. Sec. 21.25. Government Entity Agreements. Sec. 21.25-1. Accelerated Procurement of Fire Apparatus. Sec. 21.26. Contract Terms – In-Home Supportive Service Requirements. Sec. 21.27. Contract Terms – Quantities. Sec. 21.28. Contract Terms – Upgraded Products. Sec. 21.29. Contract Terms – Pricing. Sec. 21.30. Agreements for Software Licensing, Support, Escrow, Finance, Equipment Maintenance, and Content and Data Subscription. Sec. 21.31. Articles Not to Be Prison Made; Exception. Sec. 21.32. Price Adjustment for Anticipated Local Tax Revenue. Sec. 21.33. Procedure upon Contractor's Failure to Deliver. Sec. 21.34. Audit of Contractor's Records. Sec. 21.35. Submitting False Claims; Monetary Penalties.

Sec. 21.36. Contract Dispute Resolution. Sec. 21.37. Disqualification of Irresponsible Contractors. Sec. 21.38. Effect of Disqualification of Irresponsible Contractors. Sec. 21.39. Collusion in Contracting. Sec. 21.40. Construction Against Implicit Repealer. Sec. 21.41. Severability. Sec. 21.42. Professional Services Contracts for Health and Behavioral Health Services and Support. Sec. 21.43. Purchase and Sale of Certain Electricity and Related Products by the Public Utilities Commission.

Chapter 21 governs the acquisition of Commodities and Services. Chapter 21 shall not apply to contracts for public works or improvements or to contracts for the purchase, sale or lease of any interest in real property. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

As used in this Chapter 21, the following words shall have the following meanings: "Bid" shall mean a bid, quotation, or other offer, other than a Proposal, from a person or entity to sell a Commodity or Service to the City at a specified price. "Bidder" shall mean any person or entity which submits a Bid. "City" shall mean the City and County of San Francisco. "Code" or "this Code" shall mean the most current version of the San Francisco Charter and the San Francisco Municipal Code. "Commodity" shall mean products, including materials, equipment and supplies, purchased by the City. "Commodity" shall specifically exclude legal and litigation related contracts or contracts entered into pursuant to settlement of legal proceedings, and employee benefits, including, without limitation, health plans, retirement or deferred compensation benefits, insurance and flexible accounts, provided by or through the City's Human Resources Department or the Retirement Board. "Contractor" shall mean any corporation, partnership, individual, sole proprietorship, joint venture or other legal entity which enters into a contract to sell Commodities or Services to the City. "Contracting Officer" shall mean the City employee who is authorized to execute a contract, which may be either the Department head or a person designated in writing by the Department head, board or commission as having the authority to sign contracts for the Department. A designation of authority to sign contracts on behalf of a Department may specify authority to sign a single contract, specified classes of contracts, or all contracts entered into by a Department. “Delegated Purchasing Amount” shall mean the amount established by the Purchaser pursuant to Section 21.03(a) of the Administrative Code, below which the Purchaser has delegated signature and approval authority to departments to purchase Commodities and General Services. The Delegated Purchasing Amount as of July 1, 2024 is $20,000. "Electronic" shall mean electrical, digital, magnetic, optical, electromagnetic or other similar technology for conveying documents or authorizations, excluding facsimile. “Fire Apparatus” shall mean a vehicle that has been altered or designed for the purpose of firefighting. "General Services" shall mean those services that are not Professional Services. General Services include, but are not limited to, janitorial, security guard, pest control, parking lot management, and landscaping services. “Government Entity” has the meaning set forth in Administrative Code Section 1.25(d), as may be amended from time to time. “Minimum Competitive Amount” shall mean (i) for the procurement of Commodities and Professional Services, the “Minimum Competitive Amount” as defined in Section 6.40(a) of the Administrative Code, which shall be $230,000 and (ii) for the procurement of General Services, an amount equivalent to the “Threshold Amount” as defined in Section 6.1 of the Administrative Code, which shall be $1,170,000, provided that beginning on July 1, 2030, the Controller shall adjust the Minimum Competitive Amount (and the Threshold Amount from which the Minimum Competitive Amount for General Services is calculated) to reflect any increase in the relevant

consumer price index, as determined by the Controller, since July 1, 2025. The Controller shall perform a consumer price index adjustment of the Minimum Competitive Amount every five years thereafter for the preceding five-year period. The Minimum Competitive Amount as recalculated by the Controller shall be rounded to the nearest $10,000 and shall take effect by operation of law on July 1, 2030, and on July 1 every five years thereafter. "Offer" shall mean a Bid or Proposal submitted to the City in response to an invitation for Bids or a Request for Proposals. "Offer" may include a response to a request for qualifications if no further ranking prior to Contractor selection is contemplated by the procurement process. "Offeror" shall mean a person or entity that submits an Offer to the City to provide Commodities or Services. "Professional Services" shall mean those services which require extended analysis, the exercise of discretion and independent judgment in their performance, and/or the application of an advanced, specialized type of knowledge, expertise, or training customarily acquired either by a prolonged course of study or equivalent experience in the field. Professional service providers include, but are not limited to, licensed professionals such as architects, engineers, and accountants, and non-licensed professionals such as software developers and financial consultants. "Proposal" shall mean a response to a request for Proposals issued by the City for Commodities or Services, or a response to a request for qualifications if no further ranking prior to Contractor selection is contemplated by the procurement process. "Proposer" shall mean a person or entity that submits a Proposal in response to a request for Proposals issued by the City. "Purchase Order" shall mean an authorization document designated as such by the Purchaser for the procurement of Commodities or Services, whether issued in a paper or electronic format, including blanket purchase orders for purchases involving multiple payments. "Purchaser" shall mean the Purchaser of Commodities or Services of the City and County of San Francisco, or his or her designee(s). "Quotation" shall mean an Offer to supply Commodities or Services to the City for a specified price (and possibly subject to other terms and conditions) which is acquired without the use of advertising to solicit Bids. "Services" shall mean Professional Services and General Services. "Services" shall specifically exclude grants to a nonprofit entity to provide services to the community, which may include incidental purchases of commodities; legal and litigation related services or contracts entered into pursuant to settlement of legal proceedings; and services related to employee benefits, including, without limitation, health plans, retirement or deferred compensation benefits, insurance and flexible accounts, provided by or through the San Francisco Health Service System, the Retirement Board or the Retiree Health Care Trust Fund. "Solicitation" shall mean an invitation for Bids, request for Quotations, request for qualifications, or request for Proposals issued by the City for the purpose of soliciting Bids, Quotations, or Proposals to perform a City contract. “Technology Marketplace” shall mean the citywide contracts and lists of prequalified contractors, including any successor contracts and prequalified lists, administered by the Purchaser for the procurement of technology Commodities and Services, including but not limited to hardware, software, peripherals, technology maintenance, training, and support. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; amended by Ord. 9-11, File No. 101007, App. 1/7/2011; Ord. 3-12, File No. 111246, App. 1/12/2012, Eff. 2/11/2012; Ord. 46-15 , File No. 131122, App. 4/17/2015, Eff. 5/17/2015; Ord. 108-15 , File No. 150175, App. 7/2/2015, Eff. 8/1/2015; Ord. 203-21, File No. 210835, App. 11/12/2021, Eff. 12/13/2021, Oper. 7/1/2022; Ord. 167-23, File No. 230649, App. 7/28/2023, Eff. 8/28/2023, Oper. 7/1/2023; Ord. 107-24, File No. 240301, App. 5/24/2024, Eff. 6/24/2024; Ord. 79-25, File No. 250389, App. 6/6/2025, Eff. 7/7/2025; Ord. 123-25, File No. 250508, App. 8/1/2025, Eff. 9/1/2025)

(a) Approval of Purchases. The Purchaser shall purchase all Commodities or Services required by City departments and offices of the City, except as otherwise provided in this Code. The Purchaser shall, by regulation, designate and authorize appropriate department personnel to exercise the Purchaser's approval authority for contracts approved as provided in this section. (b) Purchases to be Made on Requisitions; Exception for Large Quantities or Common Use. All purchases made by the Purchaser shall be made on the basis of requisitions of ordering departments; except that Commodities and Services in common use by more than one department, or used in large quantities by a department may be purchased on the basis of the total of such requisitions or estimates previously filed from the various departments. The Purchaser is authorized to enter into City-wide requirements contracts for the purchase of indefinite quantities of Commodities or Services for the period of time and at prices set forth in the contract, under which any department may elect to order such Commodities or Services. (c) Standardization of Purchases. The Purchaser may establish specifications, terms and conditions, and product tests to cover all Commodities and Services purchases of (i) large quantities, or (ii) recurring purchases, or (iii) Commodities or Services in common use by more than one department. The Purchaser may, as far as is practicable, standardize Commodities according to the use to which they are to be put, when two or more types, brands or kinds are specified or requested by individual departments. (d) Purchases of Commodities. Purchases of Commodities shall be made in accordance with selection criteria or specifications furnished by the department requiring such Commodities whenever the need for particular selection criteria or specifications is peculiar to such department. For patented or proprietary Commodities sold by brand name, the Purchaser may require each department requisitioning same by such brand name to furnish specifications of the Commodity requisitioned, and may advertise for Offers on the basis of such specifications, under conditions permitting manufacturers of, or dealers in other products made and sold for the same

purpose, to make Offers on such specifications or on the specifications of their own product. If the Purchaser recommends the acceptance of the lowest or best Offer, stating the Purchaser's reasons in writing therefor, and if the department head concerned recommends the acceptance of any other Offer on such proprietary Commodities, stating the department's reasons in writing therefor, the award shall be determined by the Controller. (e) Procurement of Vehicles for Use of City Officials And Employees. (1) When purchasing, leasing, or otherwise procuring passenger vehicles, including passenger cars, passenger vans, sport utility vehicles, cargo vans and pickup trucks up to and including one ton in payload, departments shall request vehicles of the same functional type and passenger capacity approved by the Board of Supervisors in the budget. (2) In evaluating vehicle purchase requests, the Purchaser is authorized to consider the price, durability, fuel efficiency, resale value, expected repair and maintenance cost, and all other factors, including options and accessories that may among other considerations enhance the safety and resale value of the vehicle and that bear directly on the total cost to the City of the vehicle in relationship to the service it will render. (3) The Purchaser may develop sets of general specifications, including optional equipment, for purchases of compact, mid-size and full-size passenger cars or may specify vehicles by proprietary brand name when purchasing additional vehicles for an existing fleet. The specifications shall note the major items of standard equipment of such vehicles and may include, in the Purchaser's discretion, optional equipment which the Purchaser has determined should be ordered on City passenger cars. When procuring passenger cars, the purchaser shall include this group of options, to the extent possible, even if the department which will use the car does not request them. If a department requests optional equipment that is not part of the Purchaser's group of options and which would cost in excess of a dollar limit to be set by the Purchaser in regulations, the department must either: (A) Itemize the equipment in the description of the vehicle itself, when the vehicle purchase is reviewed as part of the City's annual budget process, and obtain the Board's approval of the vehicle as equipped; or (B) Obtain the approval of the Mayor's Budget Office before submitting a requisition to the Purchaser. (4) If a department desires to procure a passenger vehicle that is upgraded in terms of the functional type or capacity from what was approved in the budget, then the department must first obtain the approval of the Mayor's Budget Office before submitting a requisition to the Purchaser. (5) This section shall not apply to the procurement of mass transit vehicles over one ton or other specialized vehicles as defined in the Purchaser's regulations. (f) Payment procedures. The Purchaser and Controller shall establish procedures to approve all bills and vouchers for Commodities and Services. All approvals required pursuant to such procedures must be obtained before the Controller shall draw and approve warrants therefor. (g) Storerooms and Garages. The Purchaser shall have charge of a garage and shop for the repair of City equipment, and of the Purchaser's storerooms and warehouses for the City and the personnel assigned thereto. (h) Leasing Of Equipment From Non-profit Corporations Without Competitive Bidding. Notwithstanding any other provisions of this Code, the Purchaser is authorized to award a Contract, without issuing Solicitations, to a non-profit corporation for the leasing of equipment; provided, that the non-profit corporation has been formed for the purpose of aiding and assisting the City, and the formation of the non-profit corporation has been approved by resolution of the Board of Supervisors. (i) Disposal of Surplus. Commodities which have been determined to be surplus to City needs shall be disposed of in a manner which will best serve the interests of the City. For the purposes of this section, the interests of the City shall include the City's ability to maximize the City's economic return on surplus Commodities, the City's interest in maximizing the re-use of surplus Commodities by public entities, non-profit organizations and schools, and the City's interest in avoiding any unnecessary additions to the waste stream by maximizing the re-use and recycling of surplus Commodities. Disposal of surplus Commodities may include sales to, exchanges with, or donation to public entities, non-profit organizations, and private organizations for a public purpose, or donation to private entities for recycling of parts or materials. The Purchaser may maintain lists of all known local resources for transfer of surplus Commodities to public entities, non-profit organizations, and private organizations for a public purpose, and for the recycling of parts. The Purchaser shall have the authority to require the transfer of surplus property in any department to the Purchaser's stores or to other departments. (1) The Purchaser shall have the authority to exchange used Commodities to the advantage of the City, to advertise for Bids, and to sell Commodities belonging to the City on the recommendation of a department head that such Commodities are surplus to the needs of the department. (2) The Purchaser shall have the authority to donate obsolete, used or surplus Commodities if a department head states in writing that such Commodities are surplus to the needs of the department. The Purchaser shall document in writing each donation. (A) Donations of Commodities meeting the criteria listed above may be offered to public entities, non-profit organizations, or private organizations serving the public. The order of priority for donations

d or surplus Commodities if a department head states in writing that such Commodities are surplus to the needs of the department. The Purchaser shall document in writing each donation. (A) Donations of Commodities meeting the criteria listed above may be offered to public entities, non-profit organizations, or private organizations serving the public. The order of priority for donations shall be to entities or organizations: (i) Engaged in distributing the surplus Commodities offered at no cost or for a nominal fee to non-profit organizations, schools, or low-income individuals or families that are physically located in San Francisco; (ii) Engaged in distributing the surplus Commodities offered at no cost or for a nominal fee to non-profit organizations, schools, or low-income individuals or families that are physically located in the Bay Area;

(iii) Engaged in distributing the surplus Commodities offered at no cost or for a nominal fee to non-profit organizations, schools, or low-income individuals or families that are physically located in the United States; (iv) Engaged in distributing the surplus Commodities offered at no cost or for a nominal fee to non-profit organizations, schools, or low-income individuals or families that are physically located in foreign countries; (v) Engaged in recycling the surplus Commodities, including parts or materials. (B) Surplus medical supplies that are no longer in compliance with Federal Drug Administration regulations may be offered to entities and organizations which are engaged in distributing or administering the surplus medical supplies at no cost or for a nominal fee to low-income individuals or families in foreign countries. (C) To the extent that more than one organization meets the criteria in a category listed above, surplus Commodities shall be made available on a rotational basis to entities and organizations in the same category. If there is a need to dispose of surplus Commodities and no entity or organization meeting the criteria noted in Section 21.03(i)(2)(A) can be located to receive a donation, the Purchaser is authorized to utilize other means that may be available to dispose of such Commodities in a manner that will best serve the interests of the City. (j) Information Technology Purchases. All contracts for the acquisition of information technology Commodities or Services shall be made by the Purchaser. (k) Ancillary Installation Services for Commodities. The Purchaser is authorized to purchase installation Services ancillary to the purchase of Commodities, including installation Services that must be performed by a licensed contractor and may otherwise be procured pursuant to Chapter 6 of the Administrative Code. (l) Rules And Regulations. The Purchaser, with the approval of the Director of Administrative Services and the Controller, shall establish rules and regulations for the purpose of implementing the provisions of this Chapter 21. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; Ord. 9-11, File No. 101007, App. 1/7/2011; amended by Ord. 78-22, File No. 220392, App. 5/20/2022, Eff. 6/20/2022; Ord. 161-24, File No. 240366, App. 7/3/2024, Eff. 8/3/2024) Editor’s Note: Former subsection 21.03(l) (“Adjusting Scope and Compensation”) expired on 7/1/2023 per the terms of its sunset clause.

(a) Department heads may purchase Commodities or Services directly and without the approval of purchasing, as provided in the Charter or Municipal Code, or in the following circumstances: (1) Departments may directly enter into contracts when such purchase is recommended by a department head and is approved by the Purchaser. The Purchaser’s approval of direct department purchases may be for individual contracts or for classes of contracts anticipated to be required by the department. (2) Departments may directly enter into contracts with Government Entities for the purpose of fulfilling their governmental functions, which may include the provision or exchange of Commodities or Services. (3) Departments may directly enter into contracts for the investment of trust moneys and agreements relating to the management of trust assets. (4) Departments may directly enter into contracts to purchase works of art or artifacts for museums or to display in public areas; and may directly enter into contracts for specialized art restoration, insuring, transport, storage, curation, and conservation services. (5) The Risk Manager may directly purchase insurance and expert services. (6) The General Manager of the Public Utilities Commission may directly purchase water, power, or natural gas, the conveyance or transmission of same, or ancillary services such as spinning reserve, voltage control, or load scheduling, as required for assuring reliable services in accordance with good utility practice, to or on behalf of the San Francisco Public Utilities Commission. (7) Departments may contract directly for the provision of services related to travel required for official City business, subject to compliance with rules and regulations established by the approving department and the Controller for reimbursement of such expenses. (8) The Director of Health may contract directly for purchases under the authority of Chapter 21A of this Code. (9) The Chief of the Fire Department may directly enter into contracts to purchase Fire Apparatus under the authority of Section 21.25-1. This subsection 21.04(a)(9) shall expire by operation of law on July 1, 2030. After its expiration, the City Attorney shall be authorized to cause this subsection 21.04(a)(9) to be removed from the Administrative Code. (10) Departments may contract directly for purchases in emergency situations under the authority of Section 21.15 of this Code. (b) The Purchaser shall determine the scope of direct purchasing authority granted under subsection (a) in the event of ambiguity. (c) Nothing in this Section 21.04 is intended to affect the authorities granted to departments elsewhere in this Code or in the Charter.

(Added by Ord. 156-99, File No. 990743, App. 6/2/99; amended by Ord. 33-20, File No. 191237, App. 2/21/2020, Eff. 3/23/2020; Ord. 107-24, File No. 240301, App. 5/24/2024, Eff. 6/24/2024; Ord. 79-25, File No. 250389, App. 6/6/2025, Eff. 7/7/2025; Ord. 147-25, File No. 250509, App. 8/5/2025, Eff. 9/5/2025)

(a) Estimates of Requirements. All departments shall file estimates of required Commodities and services at such time and in such manner as shall be determined by the Purchaser. (b) Procurement of Professional Services. Departments shall be responsible for defining the scope of a project for contracting purposes, establishing fair evaluation criteria and selection processes for Solicitations, and for the negotiation and award of contracts for Professional Services, with the assistance of the Purchaser and the City Attorney, provided, however, that: (1) If a proposed contract for Professional Services includes the procurement of Commodities, then the department shall seek prior Purchasing approval of the Solicitation document; and (2) The Director of Purchasing shall be the Contracting Officer for Professional Service contracts unless a Contracting Officer other than the Purchaser is authorized to enter into the contract directly. (c) Cancellation of Purchase Contracts. The Contracting Officer shall be the only person authorized to terminate a contract for cause or convenience. (d) Inspection of Purchases. Departments shall make adequate inspection of all purchases. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

(a) Electronic Notification. For purposes of this Chapter, if a requirement exists that a City official notify another City official of an event, or send a report to another City official, the official with that responsibility may use Electronic notification, rather than a physical document, to effect the notice. (b) Electronic Filing. For purposes of this Charter, if a requirement exists that a City official keep a copy of a form or a document, the official may keep an Electronic record rather than a physical document, provided that the electronic record contains at least as much information as the physical form or document would have contained. Any departmental record retention policies applicable to physical records also apply to the corresponding Electronic records. (c) Other Electronic Transactions. Where the Purchaser, in consultation with the Department of Telecommunications and Information Services and COIT, determines that the technology exists to provide assurance of authentication, message integrity, and nonrepudiation through secure and reliable Electronic transactions, the Purchaser may establish regulations for the use of Electronic transactions under this Chapter, including authorization, approval or execution of documents, placing orders with Contractors, receiving Offers, making determinations, or providing notice. Such regulations shall include appropriate security to prevent unauthorized access to the Solicitation, Offer, approval and award processes, and accurate retrieval and/or conversion of Electronic forms of such information into a medium that permits inspection and copying. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

(a) For purposes of this Section 21.07, “Department,” “Surveillance Technology,” and “Surveillance Technology Policy” have the meanings set forth in Section 19B.1 of the Administrative Code. (b) Notwithstanding any authority set forth in this Chapter 21, neither the Purchaser nor any Contracting Officer may acquire any Surveillance Technology unless the Board of Supervisors has appropriated funds for such acquisition in accordance with the requirements of Chapter 19B of the Administrative Code. (Added by Ord. 103-19, File No. 190110, App. 5/31/2019, Eff. 7/1/2019; Ord. 107-19, File No. 190568, App. 6/14/2019, Eff. 7/15/2019)

All City contracts for Commodities and/or Services shall be procured through competitive solicitation, except as otherwise authorized in this Code. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

Notices inviting Offers under the provisions of Sections 21.3 and 21.4 of this Chapter must be published in accordance with the Charter and Municipal Code of San Francisco. At least five calendar days must intervene between the date of last publication and the time for filing such sealed Offers. The published notice must contain a general description of the Commodity or Service, the due date for Offers, and a City contact phone number. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

(a) Invitation for Bids. Except as otherwise authorized in this Code, for any Commodity or General Services purchase estimated to cost in excess of the Minimum Competitive Amount, an invitation for Bids shall be issued to solicit Bids and shall include a purchase description and all contractual terms and conditions applicable to the procurement, including a reservation of the City's right to reject all Offers. (b) Bid Opening. Bids shall be opened publicly by the Contracting Officer at the time and place designated in the Invitation for Bids in the presence of all Bidders who attend. Relevant information as the Purchaser may specify by regulation shall be recorded. Except for materials protected from disclosure pursuant to Administrative Code Section 67.24, the record and each Bid shall be open to public inspection following Bid opening. (c) Bid Evaluation. Bids shall be evaluated based on the requirements and specifications set forth in the Invitation for Bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the Bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs, conversion costs and total or life cycle costs. (d) Correction, Withdrawal, or Rejection of Bids; Cancellation of Awards. Correction or withdrawal of inadvertently erroneous Bids before or after award, or cancellation of awards or contracts based on such Bid mistakes, shall be permitted in accordance with regulations promulgated by the Purchaser. After Bid opening, no changes in Bid prices or other provisions of Bids prejudicial to the interest of the City or fair competition shall be permitted. Except as otherwise provided by regulation, all decisions to permit the correction or withdrawal of Bids, or to cancel awards or Contracts based on Bid mistakes, shall be supported by a written determination made by the Purchaser. The Purchaser may reject all Bids at any time prior to award. (e) Award. Except for a showing of good cause, a Contract shall be awarded not less than five (5)-working days after Bid opening by written notice to the lowest responsible and responsive Bidder whose Bid meets the requirements and criteria set forth in the Invitation for Bids. In the event that all Bids exceed available funds and the lowest responsible and responsive Bidder does not exceed such funds by more than ten percent (10%), the Purchaser is authorized in situations where time and economic considerations preclude resolicitation of work of a reduced scope to negotiate an adjustment of the Bid price, including changes in the Bid requirements, with the low responsive and responsible Bidder, in order to bring the Bid within the amount of available funds. (f) Awards in the Public Interest. If the Purchaser finds that the public interest would be best served by accepting other than the lowest total or unit price the Purchaser is authorized to accept the Bid(s) that in the Purchaser's opinion will best serve the public interest, to make the awards and to enter into the necessary contracts. Prior to making an award to a Bidder other than the lowest Bidder(s), the Purchaser shall submit a written statement of the basis for the finding to the Director of Administrative Services. (g) Additional Purchases. (1) Where the quantity of Commodities or General Services to be provided under a contract is inadequate, the Contracting Officer may, subject to the Contractor’s consent, purchase additional quantities of the specific Commodities or General Services for which award was made at the current contract price or a comparable price, in accordance with the Purchaser’s regulations. (2) If the Commodities or General Services to be provided under a contract are unavailable, obsolete, or discontinued, the Contracting Officer may, subject to the Contractor’s consent, purchase replacements for the unavailable, obsolete, and/or discontinued Commodities or General Services for which the award was made, in accordance with the Purchaser’s regulations. (h) Substantially Related Purchases. The Contracting Officer may, subject to the Contractor’s consent, purchase Commodities or General Services that were not specifically itemized in the original bid, but that are substantially related in nature and limited in scope in accordance with the Purchaser’s regulations. (i) Multi-step Bidding. A Contracting Officer may prequalify Bidders prior to issuing an Invitation for Bids based on

prequalification criteria set forth in a Solicitation. (j) Bid Protests. The procedure for resolving Bid protests shall be established by regulations adopted by the Purchaser. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; Ord. 9-11, File No. 101007, App. 1/7/2011; amended by Ord. 147-25, File No. 250509, App. 8/5/2025, Eff. 9/5/2025)

(a) Authorization; Evaluation Criteria. A Contracting Officer may issue a request for Proposals, or request for qualifications, for the selection of Professional Service Contractors following consideration of the evaluation factors set forth in the request for Proposals, which may include cost, except as prohibited by law. If a department determines that it would be in the best interests of the City to acquire combined Commodities and Services or General Services by means of a request for Proposals or qualifications, rather than an invitation for Bids, such request for Proposals or qualifications shall be issued by the Purchaser. A request for Proposals or qualifications for Professional Services may be issued directly by the department. (b) Negotiation. The Contracting Officer is authorized to negotiate terms and conditions, including price, with the highest ranked Proposer. If the Contracting Officer cannot conclude a contract that, in the opinion of the Contracting Officer is in the City’s best interest, the Contracting Officer may terminate negotiations with the highest ranked Proposer. In the event that the Contracting Officer cannot conclude negotiations with the next highest ranked Proposer on terms acceptable to the City, then the Contracting Officer may negotiate with each successively ranked Proposer. (c) Requests for Qualifications. The Purchaser may issue a request for qualifications ("RFQ") to determine the qualifications of prospective Contractors for particular types of Commodities and/or Services to the City. A department may issue a RFQ to determine the qualifications of prospective Contractors for Professional Services to be provided to that department. (d) Prequalified Lists. The Purchaser may maintain City-wide lists of prequalified contractors for Commodities and Services as follows: (1) Except as provided in subsection (2) below, prequalification may be for the following purposes: (A) maintaining a list of prequalified entities from which Contracting Officers may issue a further Solicitation for future contracts as needed by the City, or (B) the selection of the highest available ranked Contractor(s) based on ranking of responses to an RFQ. (2) For Contracts less than or equal to the Minimum Competitive Amount, selection of a Contractor(s) for a particular contract may be made without the use of a further Solicitation provided that the department selecting from the prequalified list shall notify other prequalified list members for that contract and document the selection process. At a minimum, the written documentation shall address the following: (A) The Commodities and/or Services required to meet the department’s needs; (B) The proposed Contractor’s unique qualifications or experience to provide the Commodities and/or perform the Services, or why the nature of the Commodities and/or Services requires use of the Contractor; and (C) The anticipated cost to the City and the department’s determination that such cost will be in the best financial interest of the City. The department shall maintain the selection documentation for at least three years after termination or expiration of the contract. The Controller shall periodically audit the procurement of these prequalified list contracts as provided in Charter Section F1.106. (3) Except as provided below, prequalification shall be valid for not more than two years following the date of initial prequalification. Prequalification may be valid for not more than four years so long as both the following two conditions are met: (A) The City re-opens the list by reissuing the same RFQ within two years of the original RFQ; and, (B) The City uses the same panel of evaluators to score the responses to the RFQ. Entities included on the list of prequalified entities pursuant to the original RFQ shall not be required to re-qualify under the re- issued RFQ, but may choose to submit updated information regarding their qualifications when the RFQ is re-issued. A list of prequalified entities may only be extended once under this subsection (d)(3) and may not be used for more than four years from the issuance of the original RFQ. (e) Content of Requests for Proposals. A request for Proposals shall specify evaluation criteria for selection, and shall reserve the right to reject or cancel the request for Proposals in whole or in part. (f) Mass-transit Vehicles. Notwithstanding any other provision of the charter or laws of the City, the Public Transportation Department, through its department head and through the Purchaser is authorized to include among its purchasing specifications the use of negotiated procurement procedures for the purchase of mass-transit vehicles. (g) Purchases of Services or Commodities Substantially Related to the Request for Proposals or Qualifications. The Contracting Officer may, subject to the Contractor’s consent, purchase Services and Commodities not within the original scope

advertised in the Request for Proposals or Qualifications, but that are substantially related in nature. Such additional purchases shall be limited in scope in accordance with the Purchaser’s regulations. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; amended by Ord. 142-16 , File No. 160667, App. 7/29/2016, Eff. 8/28/2016; Ord. 255-20, File No. 200787, App. 12/18/2020, Eff. 1/18/2021, Oper. 1/18/2021; Ord. 147-25, File No. 250509, App. 8/5/2025, Eff. 9/5/2025)

Notwithstanding any other provision of this Code, procurement of the following shall be made in accordance with the Purchaser's regulations: (a) Commodities or services where the total amount of the purchase does not exceed the Minimum Competitive Amount or the Delegated Purchasing Amount. It shall constitute official misconduct to divide any proposed procurement in excess of the Minimum Competitive Amount or the Delegated Purchasing Amount into two or more units for the purpose of evading this Code’s competitive solicitation requirements. (b) Commodities or services available only from a sole source. (c) Perishable foods. (d) Proprietary articles. (e) Contracts involving a pilot project with a term not to exceed two years; provided, however, that any further procurement beyond the pilot project phase shall be subject to all applicable competitive procurement requirements. (f) Contracts set aside for competitive award to Micro-LBEs in accordance with Chapter 14B.7(K) of the Administrative Code. (g) Commodities or Services purchased with federal grant funds when an informal solicitation is consistent with Federal contracting requirements. Federal grant funds include federal monies awarded to the City through the state or other governmental entities. This subsection does not cover Commodities or Services identified by the grant as an administrative or management cost or expense. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; Ord. 296-04, File No. 041450, App. 12/24/2004; Ord. 17-10, File No. 091162, App. 2/10/2010; Ord. 35-10, File No. 091231, App. 2/18/2010; Ord. 9-11, File No. 101007, App. 1/7/2011; Ord. 123-25, File No. 250508, App. 8/1/2025, Eff. 9/1/2025)

When a Contracting Officer issues a Solicitation for Commodities and/or Services and no responsive and responsible Offers are received, the Contracting Officer shall review the Solicitation to determine whether the Solicitation could be altered and reissued in a manner that would be likely to attract responsive offers. If the Contracting Officer determines that the lack of responsive Offers is not due to the content of the Solicitation, the Contracting Officer may purchase the Commodities or Services called for from any source. If two or more Bids received are for the same amount or unit price and Such Bids are the lowest Bids from responsive and responsible Bidders, then the Contracting Officer may award a contract to either of the lowest responsive and responsible Bidders in accordance with the Purchaser's regulations. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

The Contracting Officer, in his or her sole discretion, is authorized to cancel any Solicitation or reject any and all Offers, in whole or in part, prior to award, and may readvertise under such terms as the Contracting Officer deems to be in the City's best interests. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

(a) Generally. A Contracting Officer may award contracts to more than one Offeror if the Contracting Officer determines that it is in the City’s best interest to have more than one Contractor provide one or more similar Commodities and/or Services and the Solicitation states that the contract may be subject to multiple award. The Contracting Officer may either require all multiple award contractors to do

business with the City under a single set of terms and conditions, or if the Solicitation is made by means of a request for Proposals, may negotiate separate terms and conditions with each Offeror for specified Commodities and/or Services. Following multiple award and in the administration of multiple award contracts, the Contracting Officer shall use best efforts to fulfill the policies of Chapter 14B of this Code. (b) Technology Marketplace. Any department ordering Commodities or Services through the Technology Marketplace may be required to pay an administrative fee as determined by the Purchaser..1 (Added by Ord. 156-99, File No. 990743, App. 6/2/99; Ord. 9-11, File No. 101007, App. 1/7/2011; amended by Ord. 167-23, File No. 230649, App. 7/28/2023, Eff. 8/28/2023, Oper. 7/1/2023) CODIFICATION NOTE

1. So in Ord. 167-23.

(a) A contract for multiple years or with options to extend the term or renew the contract may be used when: (1) The City anticipates that the need for acquisition of the Commodities or Services that are the subject of the contract will extend beyond a single fiscal year in the case of multiple year contracts, or beyond the initial contract period in the case of renewals or extensions of contracts; and (2) The initial term of the contract and conditions for renewal or extension are included in the Solicitation, which Solicitation shall not provide for renewals or extensions of the contract for a period in excess of 10 years from the date of the initial contract; and (3) Funds are available for the first fiscal year at the time of contracting; and (4) Payment and performance obligations for succeeding fiscal years are made subject to the appropriation of funds for the contract. (b) Departments are prohibited from entering into contracts involving expenditure of City funds with provisions that would automatically renew the contract term without further action by the City. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

Prior to the initiation of performance, the Contracting Officer may require labor, materials or fidelity bonds, or a corporate surety bond conditioned for the faithful performance of any contract for the purchase of Commodities or services. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

If required by the Contracting Officer in the Solicitation, an Offer shall be accompanied by a deposit in the form of a certified or cashier's check on a solvent bank, or money order, or bid bond, payable on sight to the City in the amount fixed in the Solicitation, which amount shall not exceed 10 percent of the estimated cost of the Commodities or Services to be furnished. However, any regular or continual offeror may, in lieu of the deposit above mentioned, file a corporate surety bond in an amount to be fixed by the Controller to serve as security for a period of at least one year that the Offeror will enter into the contract, and during the contract period, furnish any required performance bond for any and all contracts awarded to that Offeror, with provision for forfeiture under the surety bond in any case of failure, neglect, or refusal to do so. The Controller may delegate to the Risk Manager the authority to fix the amount of corporate surety bonds for such types of Commodities or Services contracts and in such amounts as the Controller deems appropriate. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; amended by Ord. 165-13, File No. 130540, App. 8/2/2013, Eff. 9/1/2013)

The Controller shall approve the sufficiency of assets and qualifications of all sureties submitting any bond or security which is required under the provisions of Section 21.10 and 21.11 of this Chapter. The Controller may delegate to the Risk Manager the authority

to approve the sufficiency of assets and qualifications of sureties for such types or classes of agreements requiring surety or security bonds and in such amounts as the Controller deems appropriate. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; amended by Ord. 165-13, File No. 130540, App. 8/2/2013, Eff. 9/1/2013)

If any Offeror to whom a contract is awarded under the provisions of this Charter shall fail to file any required bond within 10 working days after receiving notice to file such bond, the Purchaser may deposit any security required to be filed under the provisions of Section 21.11 of this Chapter in the treasury for collection. The amount thereof shall be retained by the City as liquidated damages for failure of the Offeror to file such bond. Neither the deposit nor the proceeds thereof shall be returned to such defaulting Offeror; provided, however, that upon the recommendation of the department utilizing the Commodities or Services to be provided under the contract, the Purchaser may approve the return of the amount of the Bid security to excuse a forfeiture under such Bid security. Demand upon an Offeror to file a bond, as hereinbefore set forth, may, at the option of the Purchaser, be made by mail or by facsimile, addressed to the Offeror on whom it is to be served, at his or her mailing address or facsimile number, as set forth by the Offeror in the Offer. The service is complete at the time of deposit in the mail or machine confirmation of the facsimile, and the 10-day period shall commence on the first day following such deposit in the mail. The Purchaser shall have the authority to extend the period for the deposit of any required bond, except a Bid bond, whenever in the Purchaser's judgment, circumstances warrant an extension. In all cases of forfeiture hereunder, the amount of the forfeiture after collection by the City shall be entered as a credit to the General Fund. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

If on Offeror must possess a Business Tax Registration Certificate issued by the Tax Collector, but has failed to obtain one, the Contracting Officer shall not execute the contract, except in case of emergency as defined in Section 21.15 of this Chapter. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

(a) Scope. An emergency shall exist: (1) When a sudden, unforeseeable, and unexpected event necessitates immediate action to prevent or remedy harm or avert imminent danger to the lives or property of the citizens or the property of the City or to maintain public health or welfare; (2) When necessary Commodities or Services are in scarce supply due to local, national or global shortages in material or labor; (3) When the City’s ability to ensure continuity of its operations are adversely impacted by an extraordinary condition, including, but not limited to, severe acts of nature or weather events including floods, fires, earthquakes, hurricanes, or explosions; war, acts of terrorism, and epidemics; expropriation or condemnation by governmental authorities; and inflationary surges or other disruptions to market conditions; or (4) When an emergency has been formally declared by the Mayor pursuant to Section 3.100(14) of the Charter. (b) New Agreements. (1) Commodities or Services procured pursuant to subsection 21.15(a) may be purchased by the Purchaser or department head in the most expeditious manner necessary to meet the circumstances of the emergency and shall be confirmed by a written contract or purchase order as soon as feasible. (2) Emergency contracts shall be limited to a length of time deemed reasonable and appropriate by the Purchaser or department head to respond to the emergency. (3) Emergency contracts shall be exempt from the City’s solicitation requirements and are not subject to the provisions of the Municipal Code, including but not limited to the Administrative, Labor and Employment, Environment, or Police Codes, imposing obligations or other restrictions on contractors, except that the Purchaser or department shall attempt to obtain three Quotations for

emergency purchases. Notwithstanding the foregoing sentence, emergency contracts are subject to Chapters 12G and 12M of the Administrative Code and relevant provisions of the Campaign and Governmental Conduct Code. (4) When a department head contracts directly for Commodities or Services necessary to respond to an emergency, the department head, if the emergency permits, shall secure the written approval of the president of the board or commission concerned, or from the Mayor or the Mayor’s designee for any department under the Mayor’s jurisdiction, provided that the Mayor’s designee is not also the department head of the department concerned; and for any contract in excess of the Minimum Competitive Amount the department head must obtain the approval of the Board of Supervisors as soon as feasible. (c) Modification of Existing Agreements. During an emergency as defined by subsection 21.15(a), the Purchaser or department head is authorized to renegotiate existing Commodities and Services contracts to modify commercial terms and conditions, including without limitation scope, duration, price, quantity, and not-to-exceed amount, regardless of originally advertised terms, so as to ensure continuity of operations, including timely delivery or performance of the Commodities and Services purchased. Contract modifications pursuant to this subsection 21.15(c) shall be limited to a length of time deemed reasonable and appropriate by the Purchaser or department head to respond to the emergency. The Purchaser or department head shall enter into a new contract for the Commodities or Services or revert to the original terms of the contract as soon as feasible. (d) Extensions for Continuity of Operations. When necessitated by the events described in subsection 21.15(a), the Purchaser and departments may extend any existing contract when no other purchasing authority exists, provided such extension is critical to maintaining the continuity of the City’s mission-critical operations and the Purchaser or department, despite diligent efforts, lacks sufficient time or resources to execute a new contract due to the impact of the emergency. Extensions completed pursuant to this subsection 21.15(d) shall be limited to a length of time deemed reasonable and appropriate by the Purchaser or department head to respond to the emergency. The Purchaser or department head shall enter into a new contract for the Commodities or Services as soon as feasible. (e) Reporting. By July 31 of every fiscal year, each City department shall provide to the Board of Supervisors a list of all contracts and purchase orders issued or amended by the Purchaser or department under subsections 21.15(b), (c), and (d) during the past fiscal year. (f) Rules and Regulations. The Purchaser shall develop regulations regarding subsections 21.15(c) and (d) within 60 days of enactment of this ordinance to give guidance on ensuring price controls in modifications. This subsection 21.15(f) shall expire by operation of law one year after the effective date of this ordinance. After the expiration, the City Attorney is authorized to cause this Section to be removed from the Administrative Code. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; amended by Ord. 220-20, File No. 200949, App. 11/6/2020, Eff. 12/7/2020; Ord. 147-25, File No. 250509, App. 8/5/2025, Eff. 9/5/2025)

CONDUCTED BY OR FOR THE BENEFIT OF OTHER PUBLIC ENTITIES; SOLICITATIONS FOR MULTIPLE DEPARTMENTS. (a) Notwithstanding any other provisions of the Municipal Code, in cases where the Purchaser deems that it is in the City’s best interests to do so, the Purchaser is authorized, subject to the Board of Supervisors’ approval by Resolution, to sell to, acquire from, participate in, sponsor, conduct, or administer cooperative purchasing agreements for the benefit of public agencies in California or elsewhere, and may enter into reciprocal agreements for the cooperative use of Commodities or Services or the common use or lease of facilities, under the terms agreed upon between the parties. (b) Notwithstanding any other provisions of the Municipal Code, the Purchaser may utilize competitive procurements conducted by or for the benefit of other public agencies to make purchases of Commodities or Services for the use of the City, under the terms established in those procurements, upon making a determination that (i) the other procurement was competitive or the result of a sole source award, and (ii) the use of the other procurement would be in the City’s best interests. (c) Departments may utilize the results of competitive Solicitation by other City departments if such potential use by other City departments is specified in the Solicitation. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; amended by Ord. 115-05, File No. 050595, App. 6/17/2005; Ord. 161-24, File No. 240366, App. 7/3/2024, Eff. 8/3/2024)

All purchases in excess of $2,500 shall be by written contract or other instrument. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

At a minimum, all Purchasing contracts, excluding Purchase Orders and contracts executed electronically, shall be executed in triplicate. One original shall be retained by the ordering department, one original shall be retained by the Purchaser, and one original shall be provided to the contractor. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

All contracts entered into on behalf of the City for Commodities or Services to be purchased at the expense of the City shall contain a paragraph stating all of the following: (a) The City's obligation hereunder shall not at any time exceed the amount certified by the Controller for the purpose and period stated in such certification. (b) Except as may be provided by laws governing emergency procedures, officers and employees of the City are not authorized to request, and the City is not required to reimburse the Contractor for, Commodities or Services beyond the agreed upon contract scope unless the changed scope is authorized by amendment and approved as required by law. (c) Officers and employees of the City are not authorized to offer or promise, nor is the City required to honor, any offered or promised additional funding in excess of the maximum amount of funding for which the contract is certified without certification of the additional amount by the Controller. (d) The Controller is not authorized to make payments on any contract for which funds have not been certified as available in the budget or by supplemental appropriation. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

All City contracts subject to this Chapter must conform to the insurance requirements established by the Risk Manager. The Risk Manager shall develop uniform insurance requirements for City contracts subject to this Chapter 21. The Risk Manager shall review and update such insurance requirements as necessary to protect the City’s interests. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; amended by Ord. 164-23, File No. 230647, App. 7/28/2023, Eff. 8/28/2023)

Each Contractor entering into a contract with the City that could involve the Contractor's provision of intellectual property to the City must save, keep, hold harmless and fully indemnify the City and any of its officers or agents from all damages, or claims for damages, costs or expenses in law or equity that may at any time arise or be set up for infringement of the patent rights, copyright, trademark or other intellectual property claims of any person in consequence of the use by the City, or any of its officers or agents, of articles to be supplied under such contract and of which the contractor is not the patentee or assignee or has not the lawful right to sell the same. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

No contract shall be assigned, except by written instrument executed and approved in the same manner as the original contract, which instrument shall include the signature of the assignee. The Contracting Officer shall notify the Controller in writing of such assignments. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

In any contract for Commodities or Services, the Contracting Officer is hereby authorized, with the approval of the City Attorney, to waive future City rights to incidental and consequential damages arising from the performance of the contract, or to agree to limit damages caused by the contractor's negligence to a specified amount. The factors to be evaluated in determining whether damages should be waived or capped in a particular case shall include but are not limited to: (a) Whether, in light of insurance and bond requirements, the performance of the contract is likely to create undue risk of damages to the City; (b) Whether the language proposed in the contract waiving future claims to incidental and consequential damages or limiting the contractor's liability for damages caused by the contractors negligence is standard in the industry to which the contract relates; (c) The best interests of the City. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

(Added by Ord. 78-22, File No. 220392, App. 5/20/2022, Eff. 6/20/2022; expired 7/1/2023) (Former Sec. 21.24 added by Ord. 156-99, File No. 990743, App. 6/2/99; Repealed by Ord. 9-11, File No. 101007, App. 1/7/2011) Editor’s Note: Former Sec. 21.24 (“Short-Term Contract Extensions”) expired on 7/1/2023 per the terms of its sunset clause and was removed from the Code at the direction of the Office of the City Attorney.

In the case of any contract for homemaker and chore Services to be awarded pursuant to California Welfare and Institutions Code Sections 12300 et seq., the Purchaser, on the recommendation of the department head concerned and the approval of the board or commission in charge of such department, upon the ground that the public interest would be best served by requiring the inclusion of such provisions in the contract, shall require that each Offeror, as part of its Offer, submit a certified semi-annual audit, and further shall require each offeror to give preference to those homemakers employed under the previous contract to ensure continuity of wages, fringe benefits and seniority rights. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

(a) Quantities. Contracts may be made for definite or indefinite quantities of Commodities or Services. (b) Record Keeping. Any requirements contract shall include a mechanism for maintaining records of all City orders made pursuant to the contract, including inventories of any Commodity subject to a maintenance service agreement. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

Whenever a contract for the acquisition of Commodities specifies a particular product, the contract shall allow acquisition of any upgraded comparable equivalent product at an equal or lesser price in lieu of the specified product. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

(a) Pricing specifications during the term of a contract for Commodities may require fixed pricing, unspecified pricing, or may combine fixed prices for some Commodities and unspecified pricing for others, as is determined to be in the best interests of the City by the Contracting Officer. (b) If fixed prices are required by the Solicitation, such fixed prices shall represent the maximum price that the contractor may charge for the Commodities specified in the contract, and the Solicitation shall specify that the contractor must provide for price reductions as a Commodity becomes less expensive and the contractor's costs for that Commodity are reduced. (c) Contracting Officers are encouraged to include price warranties or "most-favored customer" clauses in contracts, as appropriate, to give the City consistent access to the contractor's lowest prices. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

EQUIPMENT MAINTENANCE, AND CONTENT AND DATA SUBSCRIPTION. (a) The Board of Supervisors (“BOS”) hereby approves the execution of perpetual, nonexclusive software licensing agreements which warrant performance of the software according to specifications and which are for an amount of less than $10 million, including any associated escrow agreement for source code or finance agreement, without further BOS approval. (b) Software licensing procurements are not subject to the contracting requirements of the Administrative, Labor and Employment, or Environment Codes, but shall be subject to the requirements established by subsection 21.03(j) and Chapter 67 of the Administrative Code. For the purpose of this Section 21.30, software licensing procurements shall be deemed to include both the licensed software product, any escrow agreement for source code, finance agreements, and support services for such product where support for that product is available only from the licensor. (c) Agreements for the development of software shall include acceptance testing of the software and/or performance criteria, and shall condition payments on successful completion of the acceptance test or satisfaction of the performance criteria specified in the contract. (d) Where a vendor has proprietary rights to software or where maintenance of equipment by a particular vendor is required to preserve a warranty, software support and equipment maintenance agreements entered into with that vendor shall be treated as a sole source for the purposes of any contract requirements included in the Municipal Code. (e) A Contracting Officer is authorized to make payment for software license fees and software support, equipment maintenance, associated escrow and finance fees, and content and data subscriptions, in advance of receiving services under a contract. (f) Content and data subscription procurements and resulting contracts are not subject to provisions of the Municipal Code, including but not limited to the Administrative, Labor and Employment, Environment, or Police Codes imposing obligations or other restrictions on contractors, with the exception of the Campaign and Governmental Conduct Code. Content and data subscription procurements are exempt from the solicitation requirements of Chapters 21 and 14B. For the purposes of this subsection (f), content and data subscription procurements shall include procurements where the City is seeking to purchase usage rights to review, download, or republish proprietary content, including but not limited to digital content, digital databases, digital media libraries, or print media. Content and data subscription procurements shall not include contracts where public funds are expended in violation of Administrative Code Chapter 12G or where personal information is disclosed in violation of Administrative Code Chapter 12M. (g) Contracts resulting from software licensing procurements and content and data subscription procurements may only be altered or modified through a contract amendment executed in the same manner as the original contract. Any contract clause or click-to-accept terms appearing to product users that purport to bind the City to new, updated, or dynamic terms that materially alter the obligations stated in the agreement shall be null and void. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; amended by Ord. 115-05, File No. 050595, App. 6/17/2005; Ord. 63-25, File No. 250209, App. 5/2/2025, Eff. 6/2/2025)

No Commodity furnished under any contract made under the provisions of this chapter shall have been made in a prison or by convict labor, except for Commodities made in a prison or by convicts under the supervision and control of the California Department of Corrections and limited to Commodities for use by the City's detention facilities. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

(a) Local Bidder Defined. For the purposes of determining eligibility for the price adjustment set forth in this Section 21.32 only, "Local Bidder" shall mean a business that is physically located at, and registered with the Office of the Treasurer & Tax Collector's Business Registration records as at, an address located within the geographic limits of the City. (b) Bids for the purchase of Commodities with an estimated value in excess of $1,000 submitted by Local Bidders shall be reduced by an amount equal to 1.25% of the Bid amount for the purpose of determining the lowest responsible Bidder. (c) For Bids from Local Bidders for purchase of Commodities of an indefinite quantity, the Purchaser shall select a fixed quantity of the identified Commodity based on the minimum amount of the Commodity the Purchaser estimates, in his or her sole discretion, the City will purchase over the term of the contract, and apply the 1.25% price adjustment required by Paragraph (b) to Bids from Local

Bidders to that same fixed quantity for the purpose of comparing prices offered. (d) For Bids from Local Bidders for General or Professional Services which include the purchase of Commodities with an estimated value of Commodities in excess of $1,000, the Purchaser shall reduce the Bid price of the included Commodities only by 1.25% for the purpose of determining the lowest responsible bidder. No bid adjustment shall be made for Services Contracts that will be awarded according to criteria other than lowest price. (e) The Bid adjustment required by Paragraph (b) shall be in addition to any other discounts, preferences, or adjustments required by City law. (f) Exception. The following Commodities purchases shall not be subject to the 1.25% price adjustment: (1) purchases paid for with City Retirement or Health Services System trust funds; (2) purchases where the City is entering into a cooperative procurement with one or more other jurisdiction; and (3) purchases where the price adjustment would conflict with conditions contained in federal or state grants or violate preemptive federal or state law or the City Charter. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; Ord. 9-11, File No. 101007, App. 1/7/2011) Cross reference Duties of the Sealer of Weights and Measures assumed by the Director of the Department of Consumer Assurance, Regulatory Compliance and Agricultural Standards, see Administrative Code Section 16.3-7.5.

When a contractor fails to deliver a Commodity or Service of the quality, in the quantity, or in the manner specified in the contract within the time specified in the contract, the Contracting Officer may terminate the contract and/or purchase such Commodity or Service from any source; and if a greater price than that named in the contract be paid for such Commodity or Service, the excess price will be charged to and collected from the Contractor or the sureties on the Contractor's bond(s). All items supplied shall be subject to inspection or rejection by the Purchaser, by the County Agricultural Commissioner-Sealer of Weights and Measures upon the Purchaser's request, or by the department receiving the Commodity or Service. The Purchaser's authority to procure Commodities or services from other sources as herein specified shall not preclude the City's exercise of any other remedies, including termination of the contract. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; amended by Ord. 187-04, File No. 040759, App. 7/22/2004)

The City may, at reasonable places and times, audit the books and records of a City contractor under any contract to the extent that such books and records relate to the performance of such contract. Such books and records shall be maintained by the contractor for three years from the date of final payment under the contract, unless a shorter period is otherwise authorized in writing. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

(a) The covenant of good faith and fair dealing is contained in every City Commodities or Services Contract, and Contractors and subcontractors shall at all times deal in good faith with the City and shall submit claims, requests for equitable adjustments, requests for change orders, requests for contract modifications or requests of any kind seeking increased compensation on a City contract only upon a good-faith, honest evaluation of the underlying circumstances and a good-faith, honest calculation of the amount sought. Any Contractor, subcontractor, or consultant who commits any of the following acts shall be liable to the City for three times the amount of damages which the City sustains because of the act of that Contractor, subcontractor or consultant. A Contractor, subcontractor or consultant who commits any of the following acts shall also be liable to the City for the costs, including attorney's fees, of a civil action brought to recover any of those penalties or damages, and may be liable to the City for a civil penalty of up to $10,000 for each false claim: (1) Knowingly presents or causes to be presented to an officer or employee of the City a false claim or request for payment or approval; (2) Knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the City; (3) Conspires to defraud the City by getting a false claim allowed or paid by the City;

(4) Knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the City; (5) Is a beneficiary of an inadvertent submission of a false claim to the City, subsequently discovers the falsity of the claim, and fails to disclose the false claim to the City within a reasonable time after discovery of the false claim. (b) This Section does not apply to any controversy involving an amount of less than $500 in value. For purposes of this Section, "controversy" means any one or more false claims submitted by the same Contractor, subcontractor, or consultant in violation of this Section. (c) Every Contractor for Commodities or Services performed at the expense of the City or the cost of which is paid for out of monies deposited in the treasury of City, whether directly awarded or indirectly by or under subcontract, subpartnership, day labor, station work, piece work, or any other arrangement whatsoever, is subject to the requirements of Subdivision (a). (d) Liability under this Section shall be joint and several for any act committed by two or more persons. (e) For purposes of this Section, the terms "Contractor" and "subcontractor" shall have the same definitions as found in Section 14B of the San Francisco Administrative Code. The term "consultant" shall be broadly defined to include any person or entity that provides services to the City. (f) For purposes of this Section, "claim" includes any request or demand for money, property, or services made to any employee, officer, or agent of the City, or to any Contractor, subcontractor, grantee, or other recipient, whether under contract or not, if any portion of the money, property, or services requested or demanded issued from, or was provided by the City. (g) For purposes of this Section, "knowingly" means that a Contractor, subcontractor, or consultant, with respect to information, does any of the following: (1) Has actual knowledge of the information; (2) Acts in deliberate ignorance of the truth or falsity of the information; (3) Acts in reckless disregard of the truth or falsity of the information. Proof of specific intent is not required and reliance on the claim by the City is also not required. (Added by Ord. 156-99, File No. 990743, App. 6/2/99; Ord. 23-10, File No. 091233, App. 2/11/2010; Ord. 9-11, File No. 101007, App. 1/7/2011)

With respect to any dispute which arises under or by virtue of a contract between the City and a contractor, including disputes based on breach of contract, mistake, misrepresentation, or other cause for contract modification or revision, the Contractor may submit to the Contracting Officer a written request for administrative review and documentation of the contractor's claims. Upon such request, the Contracting Officer shall promptly issue an administrative decision in writing, stating the reasons for the action taken and informing the Contractor of its right to judicial review. A copy of the Contracting Officer's decision shall be mailed or otherwise promptly delivered to the Contractor. The Contracting Officer's decision shall be final unless appealed to a court of competent jurisdiction by the Contractor. if the Contracting Officer does not issue a written decision within 120 days after written request for a final decision, or within such longer period as may be agreed upon by the parties, then the contractor may proceed as if an adverse decision had been received. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

When charges are brought for violation of Sections 21.35 or 21.38 of this Chapter, the Contractor or subcontractor shall be given notice of the charges and of all evidence supporting such charges. The Contractor or subcontractor or its attorney shall be entitled to offer rebuttal evidence and any other evidence in support of its position. The Purchaser and the Controller shall conduct a hearing, where the charges and all evidence shall be presented. In the alternative, the Purchaser and the Controller may appoint a hearing officer to conduct such a hearing and make written findings of fact to be submitted to them to render the final decision. Violation of Sections 21.35 or 21.38 by a Contractor may serve as the basis for finding that Contractor or subcontractor irresponsible and subject to the penalties fisted in those sections. Following any decision finding a Contractor or subcontractor irresponsible, the Purchaser and the Controller shall retain authority to modify the decision. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

Any Contractor who fails to comply with the terms of its contract with the City may be declared an irresponsible Contractor through the procedures listed in Section 21.37. Upon such determination, the Contractor shall not be permitted to act as a Contractor or subcontractor on any City contract for a period of up to five years as determined by the Purchaser and the Controller. The contract of any such person may, at the option of the Purchaser and the Controller, be canceled and in the event of such cancellation, no recovery shall be had thereon by the contractor. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

If any party or parties to whom a contract has been awarded participates in collusion with any representative of the City or any other party or parties in the submission of any Offer or for the purpose of preventing an offer from being made, or in knowingly receiving preferential treatment by any officer or employee of the City, then any contract so awarded, if not completed, may be declared null and void by the Board of Supervisors on the recommendation of the Contracting Officer, and the Contracting Officer shall thereupon reissue a Solicitation for the uncompleted portion of such contract. If the work under such contract shall have been completed, the matter shall be referred to the City Attorney for such action as may be necessary. Any party or parties determined to have participated in such collusion shall be deemed an irresponsible Contractor. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

No part of this Chapter shall be deemed to be impliedly repealed by subsequent legislation if such construction of the subsequent legislation can be reasonably avoided. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

If any provisions of this Chapter or any application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or application of this Chapter which can be given effect without the invalid provision or application, and to this end the provisions of this Chapter are declared to be severable. (Added by Ord. 156-99, File No. 990743, App. 6/2/99)

SERVICES AND SUPPORT. (a) The Board of Supervisors hereby authorizes the San Francisco Health Commission to designate as sole source, professional services contracts for health and behavioral health services and support, where such services are provided by non-profit organizations and a sole source designation is recommended by the San Francisco Department of Public Health. (b) Prior to the expiration of an existing contract, the Director of the Department of Public Health will survey the availability of providers for the health and behavioral health services and support services required by the Department of Public Health where such services are (1) unique to the Department of Public Health, (2) consistent with the its mission and goals, and (3) require specialized knowledge, training, personnel, facilities or other resources that are known to be provided by a limited number of non-profit contractors. Based upon the results of such surveys, the Director of the Department of Public Health may recommend a sole source designation to the San Francisco Health Commission for those services. (c) Nothing herein limits the ability of the Department of Public Health to engage in a competitive process for services provided by non-profit providers. (d) The Board of Supervisors authorizes the Department of Public Health to contract for behavioral health services to children in the foster care system under the jurisdiction of the City and County of San Francisco and located outside of San Francisco utilizing

contracting language and forms mandated by the State of California under California Welfare and Institutions Code section 5777.7. (Added by Ord. 309-06, File No. 061569, App. 12/18/2006; Ord. 243-10, File No. 100922, App. 10/6/2010)

PUBLIC UTILITIES COMMISSION. (a) Findings. (1) The Power Enterprise (“Power Enterprise”) of the Public Utilities Commission (“PUC”) operates a municipal utility, Hetch Hetchy Power, and a community choice aggregation (“CCA”) program, CleanPowerSF. Both Hetch Hetchy Power and CleanPowerSF purchase and sell electricity in the wholesale markets to serve their respective retail customers in San Francisco. (2) Hetch Hetchy Power serves its customers primarily with electricity generated by City-owned generation resources; CleanPowerSF serves its customers entirely with electricity purchased through wholesale market transactions. Both Hetch Hetchy Power and CleanPowerSF comply with state law and California Independent System Operator market rules, including requirements to procure renewable energy, Resource Adequacy (RA), and energy storage. In addition, as a CCA, CleanPowerSF is subject to numerous energy procurement requirements under state law and California Public Utilities Commission decisions. Both Hetch Hetchy Power and CleanPowerSF also must meet clean energy policies established by the City. (3) To meet regulatory requirements, secure the best possible prices and terms, keep rates affordable and competitive, and manage procurement risk, the PUC engages in a continual process of procuring power and simultaneously negotiating a mix of short, medium, and long-term contracts for a diverse supply of energy and energy-related products with multiple suppliers, all in an expedited time frame consistent with commercial expectations and regulatory deadlines. The costs expended on procuring energy for Hetch Hetchy Power and CleanPowerSF are recovered by PUC through customer billing. (4) The PUC is in a unique market position because both Hetch Hetchy Power and CleanPowerSF directly compete with PG&E and private power providers for retail electricity customers and with other PG&E and load serving entities for supplies of electricity and electricity-related products in the highly competitive wholesale markets. Hetch Hetchy Power and CleanPowerSF engage in procurement efforts through competitive bidding processes as necessary for agreements for energy and energy-related products. As the PUC manages fluctuations in supply and demand and navigates the constantly changing regulatory requirements of multiple agencies, it also engages in the sale of excess energy. (5) In order to procure energy and energy-related products in California’s highly competitive wholesale market, the PUC relies on industry standard terms and conditions which deviate from the City’s standard contract requirements. The United States Department of Energy also requires pro forma agreements without City standard terms when it sells PUC low cost energy and services. In Ordinance No. 188-23, the Board of Supervisors authorized the PUC to use the Western Area Power Administration (“WAPA”) agreements for power and scheduling coordinator services. In Ordinance Nos. 75-15, 223-15, 08-18, and 11-20 (collectively, the “Procurement Ordinances”), the Board of Supervisors authorized the PUC to use commonly used industry form contracts and PUC pro forma contracts with terms that deviated from the City’s standard contract terms, and authorized modifications to the form agreements so long as such modifications, in the judgment of the General Manager and the City Attorney, did not materially decrease the City’s rights or materially increase its liabilities. These agreements are: (A) Western System Power Pool (“WSPP”) Agreement; (B) Edison Electric Institute (EEI) Master Agreement; (C) PUC Renewable Power Purchase Agreement; (D) PUC Energy Purchase and Sale Master Agreement.;1 (E) PUC Renewable Power and Energy Storage Purchase Agreement; (F) PUC Energy Storage Purchase Agreement; (G) PUC Small Renewable Power Purchase Agreement; (H) California Community Power Buyer Liability Pass Through Agreement; (I) California Community Power Project Participation Share Agreement; (J) California Community Power Coordinated Operations Agreement. (K) United States Department of Energy WAPA Full Load Service Agreement; and (L) United States Department of Energy WAPA Scheduling Coordinator Agreement. (6) In order for CleanPowerSF and Hetch Hetchy Power to meet State law requirements for RA, defined as electricity-related products that ensure sufficient electric generation resources are available to meet unusually high levels of demand, the Renewable Portfolio Standard (RPS), the state’s program for continuously increasing purchases from renewable energy facilities, and meet City clean energy requirements, the PUC transacts for such products from a variety of counterparties. These counterparties are increasingly

requiring binding arbitration in contracts. In Ordinance No. 227-18, the Board of Supervisors authorized binding arbitration provisions in certain limited circumstances and approved three PG&E agreements with binding arbitration provisions. For the ordinance in Board File No. 241070, amending this Section 21.43, the PUC sought approval to allow the inclusion of binding arbitration in contracts with all counterparties, not just investor owned utilities. (b) Approval of Form Agreements. The Board of Supervisors approves the use of the pro forma contracts and substantially similar agreements described in subsection (a)(5) for the purchase and sale of power and related products, including the indemnification and limitation of liability provisions therein, notwithstanding that the terms of those agreements may deviate from the City’s standard contract terms. The list of pro forma agreements in subsection (a)(5) may be modified by Board of Supervisors Resolution. Further, the Board of Supervisors approves hold harmless agreements for the purchase of power and related products. The Board of Supervisors also authorizes modifications to these form agreements so long as such modifications, in the judgment of the General Manager of the PUC, the City’s Risk Manager, and the City Attorney, as required, do not materially decrease the City’s rights or materially increase its liabilities. For the avoidance of doubt, the use of any pro forma agreement included in subsection (a)(5) and any modification approved by the General Manager of the PUC, the City’s Risk Manager, and the City Attorney is deemed to include waivers of contract requirements in subsections (e), (f), and (g). (c) Delegation of Approval Authority under Charter Section 9.118. Pursuant to its authority under Charter Section 9.118, the Board of Supervisors delegates to the General Manager of the PUC authority to enter into purchases of power and related products using contracts with terms in excess of 10 years or requiring expenditures of 10 million dollars or more including amendments to such agreements with an impact of greater than $500,000, so long as the contract term, including any amendments, does not exceed 25 years. The annual expenditure for all agreements entered under this subsection (c) may not exceed 300 million dollars per year. This annual expenditure cap may be increased by Board of Supervisors Resolution. (d) Delegation of Approval Authority under Charter Section 9.118. Pursuant to its authority under Charter Section 9.118, the Board of Supervisors delegates to the General Manager of the PUC authority to enter into contracts for the sale of power and related products having anticipated revenue in excess of one million dollars or more. The annual revenue for all agreements entered under this section (d) may not exceed 300 million dollars per year. This annual revenue cap may be increased by Board of Supervisors Resolution. (e) Delegation of Approval of Binding Arbitration for Agreements. The Board of Supervisors finds it is reasonable and in the public interest to delegate to the General Manager of the PUC the authority to enter into contracts for power and related products and services with binding arbitration provisions on approval of the City Attorney, and hereby delegates said authority to the General Manager of the PUC. (f) Waiver of Certain Procurement-Related Requirements. The Board of Supervisors finds the waivers identified in subsection (g) below to be reasonable and in the public interest, for the entire procurement process for power and related products and services, where the General Manager of the PUC finds and documents in writing that the procurement process represents the best opportunity available to the City to obtain essential services and products in a manner beneficial to the City, and, for waiver of the competitive bidding requirements of Administrative Code Chapter 21 or a transaction otherwise designated as a sole source transaction by the General Manager of the PUC, the procurement process is consistent with industry standards followed by other community choice aggregation providers or other publicly owned utilities. (g) Waiver of Certain Contract-Related Requirements. The Board of Supervisors finds the waivers identified below to be reasonable and in the public interest, for a particular contract whether arising out of the procurement process described in subsection (f) or otherwise designated as a sole source transaction by the General Manager of the PUC, where the General Manager of the PUC finds and documents in writing that it is not feasible to add all standard City contract provisions to the contract and the contract includes language requiring compliance with all applicable federal, state, and local laws: (1) Nondiscrimination in contracts (Lab. and Emp. Code Article 131); (2) MacBride Principles (Admin. Code Chapter 12F); (3) Local business enterprise utilization and non-discrimination in contracting ordinance (Admin. Code Chapter 14B); (4) Consideration of criminal history in hiring (Lab. and Emp. Code Article 142); (5) Consideration of salary history in hiring (Lab. and Emp. Code Article 141); (6) First source hiring (Admin. Code Chapter 83); (7) Competitive bidding requirements (Admin. Code Section 21.1); (8) Tropical hardwood and virgin redwood ban (Environ. Code Chapter 8); (9) Minimum Compensation Ordinance (Lab. and Emp. Code Article 111); (10) Health Care Accountability Ordinance (Lab. and Emp. Code Article 121); (11) Public access to meetings and records of non-profit organizations (Admin. Code Section 12L.2); (12) Sweatfree contracting (Lab. and Emp. Code Section 151.4); and (13) Food service waste reduction (Environ. Code Section 1605). (h) Power and Related Products and Services. For purposes of the delegation, authorizations, and waiv

ance (Lab. and Emp. Code Article 121); (11) Public access to meetings and records of non-profit organizations (Admin. Code Section 12L.2); (12) Sweatfree contracting (Lab. and Emp. Code Section 151.4); and (13) Food service waste reduction (Environ. Code Section 1605). (h) Power and Related Products and Services. For purposes of the delegation, authorizations, and waivers in this Section 21.43,

power and related products and services as required for assuring reliable services in accordance with good utility practices and applicable laws shall include shall include1 power supplies, RA, the conveyance or transmission of same, or ancillary services such as spinning reserve, and voltage control. (i) Reporting. The PUC shall quarterly report to the Board of Supervisors the duration, product purchased, and cost of contracts entered into pursuant to subsection (c). The PUC shall also annually report to the Board the program costs, the rates charged to CleanPowerSF customers to recover those costs, and a comparison of those rates to PG&E rates. (j) Projects on City Property. The delegation, authorizations, and waivers in Section 21.43 shall not apply to projects being constructed on City property. (k) Sunset Date. This Section 21.43 shall expire by operation of law on July 1, 2030. Upon expiration of this Section, the City Attorney is authorized to remove this Section from the Administrative Code. (Added by Ord. 176-22, File No. 220652, App. 8/4/2022, Eff. 9/4/2022; amended by Ord. 95-23, File No. 230281, App. 5/26/2023, Eff. 6/26/2023; Ord. 24-25, File No. 241070, App. 3/14/2025, Eff. 4/14/2025) (Former Sec. 21.43 added as Sec. 15.104 by Ord. 29-97, App. 2/7/97; amended by Ord. 337-99, File No. 992043, App. 12/30/99; redesignated and amended by Ord. 176-14 , File No. 140596, App. 8/7/2014, Eff. 9/6/2014; redesignated as Sec. 21A.2 and amended by Ord. 142-15 , File No. 150567, App. 8/6/2015, Eff. 9/5/2015) CODIFICATION NOTE

1. So in Ord. 24-25.

(Added by Ord. 245-14 , File No. 141097, App. 12/4/2014, Eff. 1/3/2015; redesignated as Sec. 21A.3 and amended by Ord. 151-16 , File No. 160634, App. 8/1/2016, Eff. 8/31/2016)