Chapter 1.27
CLAIMS AND DEMANDS FOR PAYMENTS, CHECKS, WARRANTS, OTHER FINANCIAL DOCUMENTS AND PAYROLL ACCOUNT
Sections:
1.27.005 Ordinary claims for payment.
1.27.010 Claims and demands for payment.
1.27.020 Claims and demands—Procedure for payment.
1.27.040 Signatories on payroll warrants and special checks.
1.27.050 Financial documents—Confidentiality.
1.27.060 Banking transactions—Withholding of signature.
1.27.070 Alternative claim payment procedure.
1.27.005 Ordinary claims for payment.
This chapter shall relate only to the authority of the director of finance, the city council and other officers to process and pay, in the ordinary course of business, the just obligations of the city, principal and interest on bonds, payments for purchases and other like expenditures in connection with which there is no dispute as to the obligation and amount being payable.
(Ord. 2124 § 2 (part), 12-23-02)
1.27.010 Claims and demands for payment.
All claims or demands for payment against city shall be made in writing and shall set forth in detail for what the claim or demand is presented, the fund and account to which it is to be charged, and shall be authorized for payment by the department head or other authorized employee ordering the expenditure.
(Ord. 2028 § 7 (part), 11-25-97)
1.27.020 Claims and demands—Procedure for payment.
A. All claims or demands for payment against the city shall be filed with the director of finance and shall be promptly presented by him/her to the city council at a regular or adjourned regular meeting thereof after the filing of such claims or demands.
B. All claims and demands for payment against the city, before final action thereon by the city council, shall be examined by the city council auditor as set forth in Section 1.04.170 of this code.
C. When any claim or demand for payment is allowed by the city council and ordered paid pursuant to city ordinance or resolution, the mayor, or in case of his/her absence or inability to act, then the vice mayor, shall draw a warrant upon the city treasurer for the same as allowed pursuant to city ordinance or resolution. Such warrant shall be processed in accordance with the city ordinances or resolutions then in effect.
D. Upon the presentation of said warrant, when properly executed and endorsed, the city treasurer shall pay the same out of the funds of the city’s treasury.
(Ord. 2028 § 7 (part), 11-25-97)
1.27.030 Payroll account.
A. An account shall be established in the records of the general fund, known and designated as the "payroll account."
B. Upon notification by the finance department of the gross amount of each bi-weekly payroll, the city treasurer or his/her authorized representative, shall transfer to the city’s payroll account, from the city’s general account, the gross amount of the above payroll.
C. At the first regular or adjourned regular meeting of the city council after delivery of the payroll warrants said warrants shall be presented to the city council for ratification and approval.
(Ord. 2028 § 7 (part), 11-25-97)
1.27.040 Signatories on payroll warrants and special checks.
The city requires that each special trust fund and payroll check or payroll warrant bear two signatures as follows:
A. The director of finance or his/her authorized representative; and
B. The city treasurer or his/her authorized representative.
A facsimile signature of either or both of the above signatories is acceptable.
(Ord. 2028 § 7 (part), 11-25-97)
1.27.050 Financial documents—Confidentiality.
A. Any and all supporting documentation provided to the payroll division of the finance department to substantiate payroll disbursements, garnishments and other personal withholding, including documentation of the reason for such action whether it be for wage garnishment, child support, alimony or other basis (collectively "payroll deductions"), shall be treated as confidential documentation and may not be provided to any signatory of checks or warrants to authenticate or invalidate any such check or warrant. It is the responsibility of the payroll division and the director of finance to verify and substantiate the validity and accuracy of any payroll deduction.
B. Any and all supporting documentation provided to the finance department to substantiate a disbursement which has been determined by the city manager or city attorney to be of a personal, restricted, private or classified nature (i.e., attorney billing statements, telephone bills, cellular telephone bills, etc.), shall be treated as confidential documentation and may not be provided to any signatory of checks or warrants to authenticate or invalidate any such check or warrant. It is the responsibility of the city council auditor to verify and substantiate the validity and accuracy of any such check or warrant.
C. Penalty. Any city official or employee who discloses such confidential documentation shall be guilty of a misdemeanor punishable subject to Section 1.56.010 of this code.
(Ord. 2028 § 7 (part), 11-25-97)
1.27.060 Banking transactions—Withholding of signature.
A. Each check, warrant, wiring transaction, or other related transaction which represents the city’s financial obligations (collectively "banking transactions") that is placed before any signatory so designated by resolution or ordinance of the city or special agency shall be signed by that signatory provided that the banking transaction has been properly approved according to the procedures established pursuant to city ordinance or resolution.
B. Forty-Eight Hour—Special Review Period.
1. Notwithstanding the above, in the event a signatory has a reasonable belief that a banking transaction was procured, proffered or based upon fraudulent or other criminal justification or that said banking transaction was issued for a nonpublic purpose, the signatory may flag the banking transaction for a period not to exceed forty-eight hours from receipt of the request for signature; but shall in no event withhold the banking transaction. Said flag shall serve to notify staff that this item will be specially reviewed by the city council auditor.
2. During said forty-eight-hour period, the signatory shall present written documentation to the city council auditor stating the reasons justifying such flagging. If the signatory fails to present such written documentation to the city council auditor, then the flag shall be removed from the banking transaction and the banking transaction shall continue to be processed pursuant to city ordinance or resolution.
C. Unless the exception provided for in subsection D of this section was found to exist, and if the signatory presents documentation supporting the signatory’s belief regarding the improper basis of the banking transaction pursuant to subsection B of this section, the city council auditor shall review such banking transaction and determine whether the banking transaction shall be (i) submitted to an alternate signatory for signature and further processing or (ii) withheld for further review.
D. Exception. In the event the city manager determines that withholding a banking transaction for a forty-eight-hour period would present a detriment to the city’s business operations, the city manager, in his or her sole discretion, may process a flagged banking transaction prior to the elapsing of the forty-eight-hour period. The city manager, simultaneously with the processing of the banking transaction, shall also provide an explanation to the city council auditor explaining the reason or reasons why the banking transaction could not be withheld for a forty-eight-hour period.
(Ord. 2028 § 7 (part), 11-25-97)
1.27.070 Alternate claim payment procedure.
Pursuant to Article 11, Chapter 4, Part 1 of Division 2 of the California Government Code, commencing with Section 53910 thereof, notwithstanding other provisions of this chapter, the city council may, by resolution, authorize such practices with respect to the form, issuance, delivery, endorsement and payment of warrants of the city as it deems convenient, efficient and in the public interest. In addition to other practices the city council may determine, with respect to use of check-warrant forms, approval of claims for payment as authority for payment by check or wire transfer, and direction to the city depository with respect to payment of warrants, such authorization shall conform substantially to those practices specified in Article 11.
(Ord. 2124 § 2 (part), 12-23-02)