Fresno Municipal Code Art. 9 Fiscal Administration

On and after July 1, 1958, the Treasurer of the city shall receive on behalf of the city all moneys collected by the city and retain the same in his custody to the order of said city. The Controller shall be ex-officio treasurer of the city. (Rep. and Added Ord. 6262, 1963, based on former Sec. 2-1224).

The Controller may make such rules and regulations as are not inconsistent with the provisions of this article as may be necessary or desirable to aid in the administration or enforcement of the provisions of this article. (Rep. and Added Ord. 6262, 1963, based on former Sec. 2-1225; Am. Ord. 70-3, 1970).

(a) Claims against the city shall be in writing, verified by the claimant or his or her guardian, conservator, executor or administrator and filed with the Risk/Safety Manager of the city. All claims shall be filed within one year after the accrual of the cause of action, unless a shorter period is provided by applicable law. The Risk/Safety Manager, in consultation with the City Attorney, shall evaluate the sufficiency and form of all such claims and give notices relative to any deficiency thereof to the claimant. No claim may be filed on behalf of a class of persons unless verified by every class member. All claims shall contain the information required by California Government Code section 910. The Risk/Safety Manager shall have all such claims investigated, and shall prepare an investigative report and a recommendation relating to each such claim, in consultation and cooperation with the City Attorney. Claims against the city for money or damages which are excepted by Section 905 from Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of the Government Code, and which are not governed by any other statutes or regulations expressly relating thereto, shall be governed by the claims procedure prescribed in this Article. All claims against the city, including claims under the Revenue and Taxation Code or their statute prescribing procedures for the refund, rebate, exemption, cancellation, amendment, modification or adjustment of a tax, assessment, fee or charge or any portion thereof, or any penalties, costs or charges related thereto; and claims by the State or by a State Department or agency or by another public entity shall be presented and acted upon in accordance with this Article as a prerequisite to suit thereon.

(b) All claims excepted by Government Code Section 905 shall be presented within the time, and in the manner prescribed by Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of the Government Code for the claims to which that part applies, as those provisions now exist or are amended and as provided by this Article.

(c) The Risk/Safety Manager may deny any claim including a claim in litigation amounting to fifty thousand dollars ($50,000.00) or less, or may, with the concurrence of the Controller or his designee, approve for payment any claim or pending litigation amounting to twenty-five thousand dollars ($25,000.00) or less, or compromise for twenty-five thousand dollars ($25,000.00) or less any claim. "Pending litigation," for purposes of this section 7-903, shall mean any action, proceeding, or cause pending in any court of record or before anybody, official, or agency, including (without limitation), any administrative proceeding or special proceeding, provided that pending litigation shall not include a criminal proceeding.

(d) The Risk/Safety Manager shall forward any claim not disposed of pursuant to subsection (c) of this section to the Chief Administrative Officer, and shall include therewith an investigative report and recommendation. The Chief Administrative Officer may, with the concurrence of the City Attorney, deny any claim amounting to five hundred thousand dollars ($500,000.00) or less, approve for payment any claim or payment of pending litigation amounting to fifty thousand dollars ($50,000.00) or less, or compromise any claim or settlement of pending litigation amounting to fifty thousand dollars ($50,000.00) or less. Claims for benefits under the Workers' Compensation statutes are "claims" for purposes of settlement under this subsection. The Chief Administrative Officer or his/her designee, with the concurrence of the City Attorney, shall have authority to settle Workers' Compensation claims where the amount in dispute does not exceed a claimed difference of one hundred thousand dollars ($100,000) between the parties, and where the total amount or value of the settlement does not exceed two hundred fifty thousand dollars ($250,000). The Chief Administrative Officer shall return any claim which has been approved, or compromised or denied by him, together with his and the City Attorney's decisions relative thereto, to the Risk/Safety Manager who shall be responsible for immediately notifying the claimant of such decision and expediting the payment of any claim which has been approved or compromised.

(e) For all claims not disposed of pursuant to subsection (c) or (d) of this section, the City Attorney shall prepare and submit, as soon as possible, a report to the Council either in open session or in closed session, at the City Attorney's election, together with a recommendation that such claim be approved, compromised, or denied. The City Attorney shall, following the decision of Council, return the claim file to the Risk/Safety Manager attaching thereto a memorandum indicating the Council's decision in the matter. The Risk/Safety Manager shall thereupon notify the claimant, in writing, of the decision and expedite payment of any claim which has been approved or compromised.

(f) Notwithstanding the above, the Risk/Safety Manager shall notify and send copies of all claims which are determined to be covered by insurance to the insurance carrier which provides coverage to the city, and shall be the city's liaison with such carriers for the purpose of any claim involvement.

(g) The Chief Administrative Officer and Controller may delegate their respective responsibilities set forth in Section 7-903 and Section 7-910 to any staff member of their respective offices or to the Risk/Safety Manager. The City Attorney may delegate the responsibilities set forth in this article to an attorney in the City Attorney's Office.

(h) The procedure prescribed and the regulations and rules established by or under this Article do not require a shorter time for the presentation of any claim than the time provided in Government Code Section 911.2. The procedure prescribed under this Article or any rules promulgated thereunder do not require a longer time for the taking of action upon any claim than the time provided in Government Code Section 912.4.

(i) It is the intent of the Council in adopting this ordinance to extend as broadly as possible under the law the requirement that a claim be presented to the city as a pre-requisite to the bringing of any action against the city, including, but not limited to, actions arising out of or relating to contracts. As authorized under California Government Code Section 935, it is the intent of the Council that all claims for money or damages which are otherwise excepted by Section 905 of the California Government Code be filed with the city's Risk/Safety Manager prior to the bringing of any suit.

(j) The Chief Administrative Officer may adopt any and all regulations (and prescribe the form of any required claims and notices, to the extent allowed by the Government Claims Act) necessary or desirable to implement the provisions of this section.

(k) The procedures called for by this section or any enabling regulations shall apply retroactively to previously accrued claims.

(Rep. and Added Ord. 6262, 1963, based on former Sec. 2-1515.1; Am. Ord. 70-95, 1971; Am. Ord. 72-36, 1972; Am. Ord. 75-94, § 1, eff. 10-5-75; Am. Ord. 77-106, § 1, eff. 10-14-77; Am. Ord. 89-121, § 1, eff. 11-10-89; Am. Ord. 92-8, §§ 1, 2, eff. 3-6-92; Am. Ord. 2000-13, § 1, eff. 3-3-00; Am. Ord. 2004-137, § 1, eff. 1-25-05; Am. Ord. 2014-9, §§ 1, 2, eff. 3-22-14).

(a) There is hereby created a revolving fund for the city to be known as the Petty Cash Fund.

(b) From the moneys appropriated to this fund, the Controller shall distribute such amounts as he deems necessary or convenient to various departments within the city to be used for the following purposes, and no other: making petty cash expenditures, making change, making properly authorized refunds, redeeming returned checks, and advancing travel and subsistence costs.

(c) All expenditures from this fund shall be repaid from regularly budgeted accounts in accordance with established procedures.

(Rep. and Added Ord. 6262, 1963, based on former Sec. 2-1210.1; Am. Ord. 6329, 1963).

Whenever any money is received by the city and no provision is made by any resolution, ordinance, or statute for the claiming or allowing of any refund thereof, such money may be refunded in whole or in part as provided in this article and not otherwise.

(Added Ord. 6566, 1965).

Refunds may be allowed according to the following conditions:

(a) Security Deposits. Deposits and money paid to the city to secure a promise of the payor may be returned directly to the payor, or his agent, upon proof of the fulfillment of the purpose of the deposit or the promise secured. A receipt explaining the transaction, on a form approved by the City Attorney, shall be obtained from and signed by the payor or his agent.

(b) Mistake of Law. When the money was either paid by the demandant or received by the city through mistake as to the legal necessity for making the payment, refund thereof may be made upon a demand for refund, on a form prescribed by the Controller, made within one year from the date of receipt by the city of the money to be refunded. The demand shall be promptly transmitted to the head of the department involved for his recommendation and his statement of the facts upon which the recommendation is based. The demand and recommendation shall be presented to the City Attorney for his decision thereon.

(c) Mistake of Fact. When the money was either paid by the demandant or received by the city because of a mistake of fact when such payment or receipt would not have been made if such mistake had not been made, then refund thereof may be made upon a demand for refund, on a form prescribed by the Controller, made within one year from the date of receipt by the city of the money to be refunded, provided that if the mistake was wholly or partly the city's and the mistake was induced by an act or statement of the demandant, or if the mistake was wholly the demandant's and the city has made an investigation, inspection or examination, or done any similar work or rendered services, the head of the department, division or bureau may ascertain the value or cost of such and order it deducted from the amount to be refunded. His determination shall be final when approved by the Controller but there shall be added thereto the amount designated for handling charges in the Master Fee Resolution.

(d) Failure to Exercise Permit, No City Services. When the applicant for any license, permit or service has not commenced or engaged in the business or occupation, performed any act for which the license or permit was required, or received any of such service, and where, in the case of any such license or permit,

(1) The city has not made any investigation, inspection or examination, or done any similar work, whether or not required or contemplated by law, on account of the filing of the application, and

(2) The license or permit, except a building, electrical or plumbing permit, has not expired prior to the date on which the demand for refund is made, and in the case of a building, electrical or plumbing permit, one year has not passed since the date of issuance, and any issued license or permit is submitted when the demand for refund is made or, in lieu thereof, there is attached to the demand for refund the declaration of the license or permit holder, under penalty of perjury, that the license or permit has been lost or destroyed, then the money, less the amount designated for handling charges in the Master Fee Resolution, may be refunded upon demand therefor on a form prescribed by the Controller and upon which is entered the approval of the head of the department which was to administer the license, permit or service.

(e) Failure to Exercise Permit, City Services Rendered. When money has been paid under the circumstances described in subsection (d) above but when the city has made an investigation, inspection or examination, or done any similar work or rendered services, the head of the department, division or bureau must ascertain the value or cost of such, and order it deducted from the amount to be refunded. His determination shall be final when approved by the Controller but there shall be added thereto the amount designated for handling charges in the Master Fee Resolution.

(f) Approval of Controller; No Application to Taxes. The calculations of amounts to be refunded or deducted from refunds under this section shall be subject to the approval of the Controller. This section shall not apply to any business tax or other tax imposed by the city.

(Added Ord. 6566, 1965; Am. Ord. 80-115, § 9, eff. 8-8-80).

Whenever revenue received by the city is credited to an account, and it is to be repaid to the payor under applicable refund procedures the Controller shall debit such account by issuing a warrant to such payor for such refund.

(Added Ord. 67-32, 1967).

Whenever a warrant has been issued, based upon a budget appropriation, and a refund of all or any portion thereof is received by the city within the fiscal year of such appropriation, the amount of such refund may be credited by the Controller to the appropriation upon which the warrant was drawn.

(Added Ord. 67-32, 1967).

Whenever revenue is received by the city, or an encumbrance is made upon appropriation, and by mistake the wrong account is either credited or debited, the Controller shall correct such mistake by such debits or credits as are necessary to properly reflect the transaction.

(Added Ord. 67-32, 1967).

Claims of the city against others shall be handled according to the following procedures.

(a) Procedure by Controller.

(1) The Controller is authorized to pursue collection of any claims of the city against others.

(2) The Controller may, in furtherance of such claims collection:

(i) Accept a promissory note to repay the claim over a period of time;

(ii) File a Small Claims Court action to secure a judgment, when the amount of the claim does not exceed the Small Claims Court jurisdictional limit; or

(iii) Assign the claim, promissory note, or judgment to a collection agency.

(3) When the Controller determines it is in the best interest of the city to do so, considering the cost of collection and the merits of the claim, he may:

(i) Accept a compromise settlement and write off the balance of the claim as uncollectible, where the amount of the write-off does not exceed the Small Claims Court jurisdictional limit;

(ii) File an action in Small Claims Court and write off any amount in excess of such court's jurisdiction, where the amount of the write-off does not exceed the Small Claims Court jurisdictional limit; or

(iii) Write off the claim in full where the amount of the write-off does not exceed the Small Claims Court jurisdictional limit.

(4) Any claim which cannot be collected in full or disposed of in accordance with this subsection (a) shall be sent to the city attorney's office for collection.

(b) Procedure by City Attorney.

(1) The City Attorney shall pursue collection and may, in furtherance of such collection:

(i) Accept a promissory note to repay the claim over a period of time;

(ii) File an action in the appropriate court to secure a judgment; or

(iii) Assign the claim, promissory note, or judgment to a collection agency.

(2) When the City Attorney determines it is in the best interest of the city to do so, considering the cost of collection and the merits of the claim, he or she may:

(i) Authorize the Controller to accept a compromise settlement and write off the balance of the claim as uncollectible, where the amount of the write-off does not exceed fifteen thousand dollars ($15,000.00);

(ii) Authorize the Controller to file an action in Small Claims Court and write off any amount in excess of such court's jurisdiction, where the amount of the write-off does not exceed fifteen thousand dollars ($15,000.00); or

(iii) Authorize the Controller to write off the claim in full where the amount of the write-off does not exceed fifteen thousand dollars ($15,000.00).

(3) For claims in excess of fifteen thousand dollars ($15,000), when the City Attorney determines it is in the best interest of the City to accept a compromise settlement of the claim and write off the balance as uncollectible, or to write off the claim in full as uncollectible, he or she shall:

(i) Submit the matter to the Chief Administrative Officer for approval where the amount of the write-off is up to fifty thousand dollars ($50,000);

(ii) In the case of code enforcement fines, penalties, abatement costs, attorney fees, interest, and liens, in exchange for obtaining a compliance agreement, the City Attorney shall have the authority to write-off up to one hundred thousand dollars ($100,000);

(iii) In the case of third-party subrogation cases relating to workers' compensation claims and/or property reimbursements, submit the matter to the Chief Administrative Officer for approval where the amount of write-off of workers' compensation costs and property damage is up to one hundred fifty thousand dollars ($150.000).

(iv) Submit the matter to the Council for approval where the amount of the write-off, other than as provided in subsections (ii) and (iii) above, exceeds fifty thousand dollars ($50,000.00).

(4) In any instance in which a write-off is authorized under this Section, the authority shall also include entering into Agreements compromising the claim or obligation on terms that are deemed to be in the best interests of the City.

(Added Ord. 67-99, 1967; Am. Ord. 79-66, § 1, eff. 5-25-79; Am. Ord. 92-8, § 3, eff. 3-6-92; Am. Ord. 2014-9, § 3, eff. 3-22-14; Am. Ord. 2017-66, § 1, eff. 1-18-18; Am. Ord. 2019-019, § 3, eff. 9-19-19).

If payment of an amount due the city is tendered by a check or other commercial paper which fails to clear through the banks and is returned to the Finance Department, the service charge designated in the Master Fee Resolution shall be assessed. In addition, the Controller may refuse to receive personal checks from any payor who has previously made payment by a check which was returned because of insufficient funds.

(Added Ord. 70-3, 1970; Am. Ord. 78-83, § 1, eff. 6-9-78; Am. Ord. 80-115, § 10, eff. 8-8-80).

(a) The City Manager or his designee shall ascertain and make available to the Council information with respect to the qualifications and financial status of all applicants seeking city financial assistance or funding for private projects pursuant to the city's economic development program, whether such assistance consists of loans, grants, bond issuance, or otherwise. In order to comply with this requirement, and to safeguard city funds and protect the city's bond rating, the City Manager or his designee shall cause an investigation to be made of the facts stated in each application for city financing. Conviction (including pleas of guilty and nolo contendere) of any felony or misdemeanor involving moral turpitude shall constitute prima facie grounds for denying financial assistance to an applicant, except that such conviction may be disregarded if it is determined that mitigating circumstances exist. For purposes of this section, the term "applicant" includes but is not limited to an individual in a sole proprietorship, all general partners in a partnership, any person holding 10% or more of the voting stock in a corporation, and in cases where the partner or stockholder is other than an individual, the individuals who are the beneficial owners of the stock or partnership interest.

(b) In order to further the objectives set forth in subsection (a) and as authorized by California Penal Code Sections 11105(b) and 13300(b)(10), the City Manager or his designee is hereby authorized to have access to and utilize summary criminal history information on file with the State of California Department of Justice and/or local law enforcement agencies when it is necessary for such records to be utilized to fulfill the certification duties required in this section.

(c) Notwithstanding subsection (a) and (b) of this section and in addition thereto, Council may establish by resolution policies and procedures to implement this section and/or to provide for due diligence and oversight regarding private projects which seek public financing or other public assistance.

(Added Ord. 85-89, § 1, eff. 7-12-85; Am. Ord. 2009-22, § 1, eff. 7-12-09).