Chapter 2.8 City Finance and Accounting
2.8.10 Purpose of this Chapter
This Chapter establishes general procedures regarding City finance and accounting.
2.8.20 Payment and Method of Approval
Each demand shall be presented to the City Manager for written approval. All demands, whether approved or not, shall be forwarded by the City Manager to the City Council for review except as otherwise provided for in this Chapter.
2.8.30 Register of Demands
The following procedures apply to demands:
A. Warrant Register. A register of all demands shall be submitted to the City Council prior to payment except as authorized by this Chapter. The warrant register shall specify for what purpose the demand is drawn and the fund from which it is to be paid.
B. Payroll and Budgeted Demands. Payroll and budgeted demand warrants whose compensation has been previously fixed by the City Council need not be reviewed by the City Council prior to payment. Payrolls shall be presented to the City Council for ratification and approval at its first meeting after payment of the payroll warrants. Warrants of demands certified or approved by the City Manager as conforming to a budget approved by ordinance or resolution of the City Council, need not be reviewed by the City Council prior to payment. Budgeted demands paid prior to review by the City Council shall be stated on the register of demands separately from unpaid demands, and shall be presented to the City Council for ratification and approval at its first meeting after delivery of the warrants.
C. Disposition of Warrant. If the City Council finds that any claim or demand is not a proper charge against the City, it shall be rejected. If any demand is determined to be a proper charge against the City, the same shall be allowed setting forth as to each demand, the name of the claimant, a brief statement of the demand, and the amount claimed. Any demand may be allowed in part and rejected in part by the City Council.
D. Approved and Allowed. For any demand approved and allowed by the City Council, the Mayor or other authorized person shall sign the warrant upon the City Treasury for the claim that shall be countersigned by the City Manager. The warrant shall specify the purpose of the payment and from what fund the claim is to be paid. Warrants and checks drawn upon the City funds may be combined in one instrument.
E. Check Authorization. For any demand approved and allowed by the City Council, the Mayor or other authorized person shall sign the check for the demand. The check shall be countersigned by the City Manager.
F. Payroll Checks. The City Treasurer shall establish a separate payroll account on which all payroll checks shall be drawn. The payroll account shall be designated the "Payroll Revolving Fund" and shall be maintained and replenished out of the General Fund. All monies in this fund shall be expended exclusively for payroll purposes. Payroll checks shall only require the signature of the City Treasurer or City Manager. Before such payroll checks are issued, the Director of Finance shall certify, in writing, that the payroll is correct.
G. Sufficient Money in Treasury. Except as otherwise provided, no warrant shall be paid until there is sufficient money in the City treasury legally applicable to the payment of the demand.
2.8.40 Claims
The following procedures must be followed in the consideration and payment of claims:
A. Person to Present Claim. No City officer shall, except for his own service, present any claim against the City, or in any way, except in the discharge of his official duty, and advocate for the relief asked for in the claim made by any other person. Any person may appear before the City Council and oppose the allowance of any claim made against the City.
B. Itemization Necessary. The City Council shall not hear, consider, allow, or approve any claim against the City unless such claim is itemized.
C. Claims Against the City. The subsection is enacted pursuant to the California Government Code.
1. All claims against the City for money or damages not otherwise governed by the Tort Claims Act, California Government Code Section 900 et seq., or another state law (hereinafter in this Chapter, "claims") shall be presented within the time, and in the manner, prescribed by Part 3 of Division 3.6 of Title 1 of the California Government Code (commencing with Section 900 thereof) for the claims to which that Part applies by its own terms, as those provisions now exist or shall hereafter be amended, and as further provided by this Section.
2. All claims shall be made in writing and verified by the claimant or by his or her guardian, conservator, executor or administrator. No claim may be filed on behalf of a class of persons unless verified by every member of that class as required by this Section. In addition, all claims shall contain the information required by California Government Code Section 910.
3. In accordance with California Government Code Sections 935(b) and 945.5, all claims shall be presented as provided in this section and acted upon by the City Council prior to the filing of any action on such claims and no such action may be maintained by a person who has not complied with the requirements of Subsection (C)(1) of this Section.
4. Any action brought against the City upon any claim or demand shall conform to the requirements of Sections 940-949 of the California Government Code. Any action brought against any employee of the City shall conform to the requirements of Section 950-951 of the California Government Code.
2.8.50 Purchasing Policy
It shall be the policy of the City to obtain supplies and equipment of the highest quality for the lowest cost. (Ord. 2007-04 § 2)
2.8.60 Bidding Procedures
The following procedures apply to all bidding:
A. Bid Notice Requirements. Purchases of or leases for supplies and equipment of an estimated value of greater than ten thousand ($10,000.00) dollars shall be by written contract with the lowest responsible bidder after notice. Such notice shall invite bids and include a general description of the supplies or equipment to be purchased or leased, where bid forms and specifications may be obtained, and the time and place for the submittal of bids.
B. Publication of Bid Notice. Such notice shall be published in a newspaper of general circulation and/or by posting the bid notice. The City Manager shall also mail a copy of such notice to anyone who has requested to be so notified. All notices shall be published, posted, or mailed not less than ten (10) days prior to the date specified for the submittal of bids.
C. Security of Bidder. When deemed necessary by the City Manager, bidder security may be prescribed in public notices inviting bids. Bidders shall be entitled to the return of bid security; provided, that a successful bidder shall forfeit its bid security upon refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless the City is responsible for the delay. The City Manager may, upon refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Manager awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied to the difference between the low bid and the next lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
D. Bid Submittal. Bids shall be submitted to the City Manager and opened at the time specified by the City Manager. Bids received by the City shall be retained for public inspection during regular business hours for not less than the period specified in the City’s document retention policy.
E. Bid Rejection. The City Council may reject any and all bids, waive any irregularity in any bid and readvertise for bids.
F. Awards to Lowest Bid. In the event that the City Council decides to award the contract, the contract shall be awarded to the lowest responsible bidder except as otherwise provided herein based on a detailed analysis of the bid package which may consider the full life cycle analysis of the bid proposal.
G. Performance Bond Requirement. The City Manager shall have authority to require a performance bond in an amount necessary to protect the best interests of the City before entering into a contract. If the City Manager requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. (Ord. 2007-04 § 2)
2.8.70 Purchases on the Open Market
Purchases of supplies and equipment of an estimated value of ten thousand ($10,000.00) dollars or less may be made by the City Manager on the open market after solicitations of written proposals from prospective sellers. Such solicitation may be made in writing, by telephone or otherwise, and shall be made to sufficient numbers of prospective sellers as may be deemed by the City Manager to be consistent with the policy of the City Council. Written proposals shall be submitted to the City Manager who shall keep a record of all proposals for the period corresponding to the City’s document retention policy. Such records shall be made available for public inspection (vendor proprietary data shall not be open to public inspection). (Ord. 2008-09 § 1; Ord. 2007-04 § 2)
2.8.80 Exceptions to Bidding and Open Market Purchasing Procedures
The bidding and proposal requirements of Sections 2.8.60 and 2.8.70 shall not apply to purchases of supplies and equipment in one or more of the following circumstances:
A. Such supplies or equipment have an estimated value of less than five thousand ($5,000.00) dollars;
B. Such supplies or equipment are unique because of their quality, durability, availability, or fitness for a particular use;
C. Such supplies or equipment are available from only one source;
D. The City Manager has determined that exigent circumstances require the immediate purchase of such supplies or equipment;
E. Such supplies or equipment are provided by an independent contractor pursuant to an agreement with the City for the furnishing of labor and materials for other than the construction of a public works project;
F. Where it is advantageous to combine purchase of such supplies or equipment with another governmental entity, and the governmental entity employs purchasing procedures adequate to ensure effective competition among responsible vendors;
G. Whenever feasible and beneficial to the City, the City Manager may authorize the purchase of such supplies or equipment from vendors who have cooperative-type contracts with another governmental entity; or
H. Such supplies or equipment are purchased through a public or private auction, to the extent that the City Manager has determined that such purchases are in the best interest of the City. (Ord. 2008-09 § 5)
2.8.90 Inspection and Testing
The City Manager shall inspect or oversee the inspection of supplies and equipment delivered to the City to determine their conformance with the specifications contained in the order or contract. The City Manager shall have authority to undertake sampling or other testing as necessary to determine the quality of any deliverables and their conformance with applicable specifications. (Ord. 2008-09 § 2. Formerly 2.8.80)
2.8.100 Disposition of Surplus Supplies and Equipment
All departments shall submit to the City Manager, when requested, reports showing all supplies and equipment that are no longer used or which have become obsolete. The City Manager shall have authority to sell, exchange or trade this equipment for new supplies and equipment. Any sale of equipment shall be made by the most effective method that may include formal sealed bids, informal bids, and negotiations. In addition, the City may hold a public auction when selling City supplies and equipment. In the event the supplies and equipment are offered at public auction, any person may make an offer to purchase the supplies and equipment. No City employee shall purchase any supplies or equipment sold by means other than a public auction, nor shall the party conducting the auction purchase any supplies or equipment at the auction. (Ord. 2008-09 § 3. Formerly 2.8.90)
2.8.110 Assessor and Tax Collector
Pursuant to the authority granted by Section 51501 of the Government Code of the State of California, the assessment and tax collection duties performed by the City Assessor and Tax Collector hereby are transferred to the Assessor and Tax Collector to the County of Los Angeles. (Ord. 2008-09 § 4. Formerly 2.8.100)