(a) Whenever used in this section, the following words and phrases shall have the following meanings:
"Contract" means any agreement or transaction pursuant to which the contracting party receives city funds in consideration for services, work or goods provided or rendered.
"Debt" means a specified sum of money owed to the city for which the period granted for payment has expired.
(b) Every city contract shall contain a provision that entitles the city to set off a portion of the contract price equal to the amount of any debt owed by the contracting party to the city.
(c) Notwithstanding the provisions of subsection (b) herein, no such debt shall be offset from the contract price if one or more of the following conditions are met:
(1) The contracting party has entered into an agreement with the department of finance, or other appropriate city department, for the payment of all debts owed to the city and the contracting party is in compliance with the agreement; or
(2) The contracting party is contesting liability for or the amount of the debt in a pending administrative or judicial proceeding; or
(3) The contracting party has filed a petition in bankruptcy and the debts owed the city are dischargeable in bankruptcy.
(Prior code § 26-27.2; Added Coun. J. 6-7-90, p. 17027; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 2; Amend Coun. J. 10-28-15, p. 11951, Art. I, § 1)