Committee adopts amendment requiring Sequoia to demonstrate Ranked‑Choice capability before full payment

The Budget & Finance Committee on Nov. 14 considered a proposed four‑year contract (about $12.66 million) with Sequoia Voting Systems to replace the existing vendor and provide an optical‑scan, paper‑based voting system and touchscreen devices to support accessibility at polling places. John Arntz, Director of Elections, described contract provisions that require Sequoia to support Ranked Choice Voting (RCV) and include liquidated damages and performance bonds to protect the city if equipment or milestones are not met.

Arntz said the contract would preserve a paper ballot system with optical‑scan tabulators while providing one accessible touchscreen at each polling place. He said Sequoia had applied to the federal Elections Assistance Commission for RCV capability and that the vendor has contractual obligations to develop an alternate counting plan — and to pay associated costs — if the RCV functionality is not federally or state certified in time.

Representatives of Sequoia said operational demands (upcoming local elections) limit Sequoia’s ability to perform a full demonstration before the early December Board meeting; Sequoia offered two options including a public demonstration in February and asked the committee to withhold the $650,000 RCV payment until Sequoia demonstrates RCV capability. Steven Bennett of Sequoia told the committee the estimated cost of RCV work was $650,000 and the company would accept withholding that amount until a successful public demonstration.

Public commenters and advocates pressed for full public disclosure of source code, stronger independent review and transparency, or alternatives such as hand counting. Academic and civic speakers cited prior technical reviews and urged San Francisco to insist on open‑source or fully disclosed systems to build confidence. Others — including Elections Commission members and officials — urged the city to move quickly to replace the current equipment to avoid gaps in future elections.

Deputy City Attorney Anne O'Leary and counsel drafted an amendment to the resolution requiring Sequoia to publicly and fully demonstrate its RCV capability by Feb. 12, 2008; if Sequoia fails to do so, the city may withhold the $650,000 RCV payment until the demonstration has been conducted. The amendment also added contractual protections including liquidated damages for equipment malfunction, a third‑party source‑code review paid by the city with Sequoia required to remediate material security deficiencies, and a performance bond.

The committee adopted the amendment of the whole as orally amended and continued the item to the December committee meeting so the department, budget analysts and counsel can finalize the revised contract language and demonstration timetable. The department and Sequoia agreed to withhold the RCV payment pending a successful public demonstration.

Next steps include a full demonstration for the Board and completion of updated Budget Analyst reports; the Board will consider the amended contract at a subsequent meeting.