HomeMy WebLinkAbout1991-06-25 - AGENDA REPORTS - CHECKREG DEMAND RESO 91 99 (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
BACKGROUND
AGENDA REPORT
City Manager -Approval
* 11
Item to be presented by:
Andrea Daroca
June 25 1991
Resolution No. 91-99
Amendment of the check register (demand warrant) procedures
including co rsion from Biweekly to Weekly.cycle.
Finance RuT
Under our current Biweekly check register cycle there is often a five week
delay before vendors receive payment. This timeframe may be extended if an
invoice misses the cut-off date. These delays give the City a less than
desirable image when vendors receive the impression that we are not prompt in
meeting our obligations. Furthermore, these delays are costly and
inefficient. Often; we lose the opportunity to take advantage of vendor
discounts which would save the City money. Also, manual hand written checks
need to be prepared to accommodate urgent matters. The staff time associated
with the preparation of hand written .checks is much higher than regular checks
which results in an inefficient use of time.
Fifteen cities comparable to Santa Clarita were surveyed to find out how their
check register process works. Nine of those fifteen cities had at least one
check register cycle per week. When the cities were questioned about the
approval for hand write checks, only one of the fifteen cities surveyed
required the approval of the City Manager to issue hand checks..' By
authorizing the Director of Finance to approve hand write checks, it would
speed up.the hand check process thus keeping consistent with .the objective of
speed and efficiency.
Based on discussions which took place at seminars on team building and
customer service, and on surveys comparing our practices to those of
comparable cities, it would be advisable to amend our check register
procedures in order to save money, gain efficiency, and establish improved
relationships with our vendors.
Adopted:.,
Agenda Item:
page 2
RECOMMENDATION
To approve and adopt Resolution Number 91-99 attached which includes the
following changes:
1) Conversion from a Biweekly to a Weekly Payment Cycle
2) Mailing of checks subject to City Manager (as opposed to City
Council) review
3) Authorization for Hand Checks.to be obtained from the Director of
Finance rather than the City Manager.
ATTACHMENTS
Resolution Number 91-99
RESOLUTION NO. 91-99
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA
CALIFORNIA, REVISING THE CHECK REGISTER PROCESS
WHEREAS, present check register processing is tedious and inefficient
causing unnecessary delays in payment to venders, resulting in lost discounts
and possible blemished City rapport.
WHEREAS, the City will revise current check register processing,
issuance of hand written checks, and the current payment cycle..
WHEREAS, pursuant to Government Code Section 3708, Subsection B,
"Warrants or checks drawn in payment of demands certified or approved by the
city clerk as conforming to a budget approved 'by•ordinance or resolution of
the legislative body need not be audited by the legislative body prior to
payment."
NOW, THEREFORE, the City Council of the City of Santa Clarita,
California does resolve, declare, determine and order as follows:
Section 1. Is revised that the current check register process by
authorizing the option of obtaining hand checks from either the City Manager
or the Director of Finance.
Section 2. That the current payment process be converted from a
Biweekly to a Weekly payment.cycle.
Section 3. That, pursuant to Government Code Section 37208, the City
Manager is authorized to prepay demands prior to City Council review.
Section 4. The City Clerk shall certify to the passage of this
Resolution.
PASSED, APPROVED AND ADOPTED THIS day of
19
MAYOR
ATTEST:
CITY CLERK
Resolution No. 91-99�
Page 2 -
I, Donna M. Grindev hereby certify that the foregoing Resolution was
duly adopted by the City Council of the City of Santa Clarita at a regular
meeting thereof, held on the day of 19
by the following vote of the Council:
AYES: COUNCILMEMBERS:
NOES:
ABSENT: COUNCILMEMBERS:
CITY CLERK