Loading...
HomeMy WebLinkAbout1997-047 Use and control of credit cards yy • ORDINANCE NO. 97 AN ORDINANCE adopting a system for the issuance, use and control of credit cards by City officials and employees; and directing the Department of Finance and Budget to adopt rules and procedures to implement such system. • WHEREAS, the City Council, upon the recommendation of the City's Department of Finance and Budget, finds the use of credit cards to be an appropriate and useful means of making payment for a variety of types of purchases, including emergency purchases, purchases of small items, one -time purchases from vendors, and travel expenses; and WHEREAS, the City has obtained and authorized the use of credit cards in accordance with RCW 42.24.115 relating to charge cards used for officers' and employees' travel expenses. WHEREAS, the State legislature finds that the use of credit cards is a customary and economical business practice to improve cash management, reduce costs, and increase efficiency; and 0, WHEREAS, RCW 43.09.2855 provides that any city which contracts for the issuance and use of credit cards must Y a adopt system for the distribution, authorization, credit limits, payment and control of such credit cards; NOW THEREFORE, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Definitions. As used in this ordinance, "credit card" means a card or device issued under an arrangement pursuant to which the issuer gives a cardholder, the privilege of obtaining.credit from the issuer. , Section 2. Issuance, use and control of credit cards. The City Council hereby adopts the following system for the issuance, use and control of credit cards by City officials and employees: A. The Department of Finance and Budget shall implement the following system for the distribution, authorization and control, credit limits and payment of bills related to the use of credit cards by City officials and employees: 1. Distribution. The Department of Finance and Budget will establish and maintain credit card accounts and procedures relating to credit card distribution. 2. Authorization and control. The Department of Finance and Budget shall develop the implementation guidelines and accounting controls to ensure the proper usage of credit cards. ORDI 3. Credit limits. The of Finance and Budget shall set credit limits on each credit card issued. The credit limit shall not exceed $5,000.00 without written approval of the City Manager. 4. Payment of bills. The Department of Finance and Budget shall establish and implement a written procedure for the payment of all credit card bills. 5. Unauthorized charges. No employee shall use the City- issued credit card for non -City business use. Any employee using a City- issued credit card for non -City business shall be billed for all unauthorized charges on the credit card. If charges are not reimbursed within five (5) days from notification, the City Manager or his/her designee is directed and authorized to make payroll deductions to recover any unauthorized charges, together with interest and all other charges made by the credit card company pertaining to the unauthorized use. 6. Cash advances. Cash advances on credit cards are prohibited. B. The Department of Finance and Budget is authorized to adopt any additional policies necessary to implement the provisions of this section. Section 3. Severability. Should any section, paragraph, sentence, clause or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reasons, or should any portion of this Ordinance be preempted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this ordinance or its application to other persons or circumstances. Section 4. Effective date and publication. This ordinance shall be in full force and effect thirty days after its final passage, approval and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this /s day of July, 1997. Lynn K. Buchanan, Mayor ATTEST: • City Clerk • - p -q Publication Date 7 �4 I Effective Date -/7 - 17 ORDI '- • . BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT .t / Item No. ` l • For Meeting Of--711 • ITEM TITLE: An ordinance adopting a system for the issuance, use and control of credit cards by City officials and employees; and directing the Finance Department to adopt rules and proce re to implement such a system. SUBMITTED BY: Department of Finance & Budget I CONTACT PERSON/TELEPHONE: Cindy Eppers• , ccountant / 576 -6644 SUMMARY EXPLANATION: Several years ago, the City used gasoline credit cards for use in emergency vehicles and for travel. This contract became difficult to administer, and the City obtained VISA credit cards to be used for authorized travel expenses. At that time, State law allowed credit card use only for travel- related expenses. In 1995, State law expanded the use of credit cards for a variety of purchases. This law also created a new requirement for the legislative body to adopt a system to account for and control credit card use. To date, City credit cards, which were being used before the change in State law, have only been used for travel - related expenses. This legislation authorizes the expansion of their use to other purchases, and provides for the Department of Finance and Budget to provide the authorization and the control features to monitor and ensure proper usage of the cards. It is unlikely that the cards will be used for purposes other than travel; however, there may be certain instances where one -time or special conditions warrant credit card use. For that reason, the legislation provides for all the broadest uses permitted under State statute. Resolution _ Ordinance X Contract _ Other (Specify) Funding Source /, APPROVED FOR SUBMITTAL: ket City Manager STAFF RECOMMENDATION: Read Ordinance by title only at the July 1, 1997 meeting; pass Ordinance following the second reading at the July 15, 1997 meeting. BOARD /COMMISSION RECOMMENDATION: COUNCIL ACTION: First reading on 7/1/97 Legal /Bd Agenda/Credit Cards