HomeMy WebLinkAbout1979-07-17; City Council; 5923; Revision of Refund Procedures---
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..__. ---~ ... CITY 01~ CARLSBAD
l1GI::NDA BILL NO. S~9'.'-=ri?._3-=---------
Di\TB: JULY 17, 1979
Initial: fl',. Dept.Hd. "/f.1/',
C. Atty.~
C. Mgr.~ DEPAR'l'MENT: CITY Ml\Nl\GER
SUbJect:
REVISION OE' REFUND rROCEDURES
S"l:cltem"i!nt. of the Matter
As i:1dic:ated in the attached repo:r.t, your request to prepare
an amendment to the Municipal Code on refund procedures has
lt>d to a more ,:Jetailed analysis of the method of paying
demancJs as well. 'l'he attached report recommends needed
revii-;ion~ to the Municipa,,l Code and provides for a more
effic:le1"'t way of processing r.efund requests under $500.
Exh:i,bit
Repor~ to City Manager dated July 9, 1979 from Adm. Asst.
Ordi nancc: No. /6 J.,£
City Council Policy No. 26
Recommendation
If the Council cv~.curs, Council's action would be to introduce
Ordinance No. / ;2 /..;C
Approve Council Policy No._2_6_, by' minute motion.
Council ,Action:
7-17-79 Council introduced Ordinance 1215, amending the Munfcipal Code to
revise the procedure for claims 'and demands.
Council continued Council Policy tto. 26.
8-7-79 Council adopted Ordinance 1215.
DATE: JULY 9, 1979
TO: CITY MANAGER
FROM: Administrative Assistant
SUBJECT: REFUND PROCEDURES
Your request to investigate methods of revising refund procedures
has led to an analysis of the City procedures invol'!ed in paying
claims and demands. Chapter 3.32 of the Municipal Code details
procedures for paying claims and demands as well as refunds.
Unfortunately, the current practice and the procedure outlined
in the Code do not correspond.
Ordinance 1005, which established the procedure on claims and
demands, was adopted on November 2, 1954. Since that time, in
an effort to expedite the payment of demands, the procedure has
evolved so that present practices are not consistent with Code
requirements. The requirements written into the Municipal Code
are very detailed and restrictive in light of today's operating
requirements. Although the Code requirements may have served a
good purpose when originally adopted, the Code should be amended
to reflect the realitieo of today's operating needs.
The requirements of Chapter 3.32 are more restrictive and detailed
than required by state law (Government Code Sections 37201-37210)
and reflect local policy requirements. Chapter 3.32 requires
approval of the Auditing Committee (Section 3.32.020(3)), prior to
payment of the demand. This procedure is not always followed and
in practice, demands are approved after the fact. Although this
practice does not conform to the requirements of the Code, such
procedures are allowed under State law (Government Code Section
37208).
In regard to the matter of refunds,code Section 3.32.030 requires
prior approval by the City Council before a refund may be made.
This procedure is even more restrictive than requirements for
paying demands (Auditing Committee approval is required before
payment of demands; the entire Council must approve the payment
of a refund) and does not appear to serve any useful purpose. The
existing procedure requires the person requesting the refund to
make written application and have the refund approved by the City
Council.
REE'UNO PROCEDURES
July 9, 1979
Page 2
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In most cases the amount of refund is small and the applicant is
forced to wait from two to four weeks before a refun1 may be
granted. The following information is a sample of fifteen (15)
Agenda Bill refund requests, submitted to the City Council since
January l, 1978:
Amount of Request Total No. of Refunds % of Total
$ 0 -50 192 83.5
$ 51 -100 13 5.7
$ 101 -500 19 8.3
$ 501 -1060 2 0.8
$1000 -and over 4 1. 7
Total 230 100.0%
The largest refund during this periud was for $8,031 and the
smallest was for $1.05. The average refund was about $63.00
97.5% of the refunds made during this period were for less than
$500.00.
An ordinance amending Chapter 3.32 has been prepared. The amend-
mend provides for the elimination of the Audit Committee, substitutes
the words "Finance Director" for "City Clerk," and modifies the
procedure so that upon proper documentation, the City Manager may
authorize refunds less than $500.00. Warrants drawn in payment
of refunds would be listed on the warrant register like other
warrants and ratified by the City Council at its next meeting.
Although the proposed procedure for payment of demands varies
significantly from that required under existing Chapter 3.32,
the amendment to Chapter 3.32 would conform to actual practice.
The recommended Code Section 3.32 complies with the requirements
of state law, provides good internal control, and provides adequate
documentation for auditing purposes.
It is further recommended that existing Section 3.32.020(f) be
deleted from Section 3.32.020 and amended into Section 2.20.060(6).
Section 2.20.060 establishes the powers and duties of the Finance
Director. Sub-paragraph (6) of Section 2.20.060 provides that
the Finance Director shall supervise the keeping of current
inventories of all property of the City. The time and scope of
inventory requir:ed under Section 3. 32. 020 (f) can be amended into
Section 2.20.060(6) where it more appropriately belongs.
In addition to amendments to the Municipal Code,City Council
Policy No. 26 , refund of recreation fees has also been prepared.
The policy provides more detailed guidance on the refund of
recreation fees and provides for the issuance of a credit memo
in lieu of a refund under certain circumstances.
?YYt
FRANK N. MANNEN
Assistant
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C!TY OF CARLSBAD
COUNCIL POLICY STATEMENT
General Subject: PARKS AND RECRF.ATION
Specific Subject: Refund o·f Recreation Fees
rol:i.cy No. 26 (Page 1 of 1)
Date Issued 7-18-79 ·-----i
Effective Date 7-18-79
Cancellation Date_
Supersedes No.
Copies to: City Council, City Manager, City Attorney, Department and
Division Heads, Employee Bulletin Boards, Press, File
PURPOSE:
To establish a policy to goverr. the refund of fees collected by the Parks
and Recreation Department for fee supported programs.
Di\CKGROUND:
The Parks and Recreation Department conducts numerous fee supported pro-
giams. In order to generate sufficient funds to support such programs,
fees are collected to cover the cost of conducting the program. A mini-
mum number of particip,r1ts is also required if the program is to be self-
supporting. From time to· time fee supported programs are cancelled or
program participants decide not to participate, either before or after
the progr&m begins. The Carlsbad Municipal Code deals generally wit:h the
issue of: refund·s, however, there is no specific policy statement on
refund of fees collected for Parks and Recreation programs.
POLICY:
l. When the City cancels a fee supported Parks and Recreation program,
registered program participants shall be eligible for a refund as
authorized in the Carlsbad Municipal Code. Registered participants,
in lieu of a refund, may request a credit for the fees paid against
future fee supported programs.
2. If a registered participant withdraws prior to the beginniflg of a
fee supported program, the registrant shall not be eligible for
a refund but may receive a credit to be applied to another fee
suppol~ted program.
3. If a registrant withdraws or fails to attend a program after it
begins, the registrant is not entitled to a refund or a ci·edit.
4. Credits must be used within 6 months after issue. Credits will
not be refunded.
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ORDINANCE NO. 1215 -----
AN ORDINAt'lC)~ OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, AMENDI~G
'1'1.TLE 2, CHAPTER 2. 20 or THE CARLSBAD
MUNICIPAL CODE BY THE AMENDHEN'l' OF
SECTION 2.20.060 AND BY THE AVJ.ENDMENT
OF CHAPTER 3. 32 TO REVISE THE PROCEDURE
FOR CLAIHS AND DEMANDS.
The City Council of the City of Carlsbad, California, does
7 ordain as follows:
8 SECTION 1: 'J!hat Title 2, Chapter 2.20, Section 2.20.060 of
g the Carlsbad Municipal Code is amended by the amendment of
10 Stu½section ( 6) to read as follows:
11 "(6) Property Inventory. He shall supervise the keeping of
current inventories 0£ all property of the City by all city
12 departments, offices and agencies. At least once in each fiscal
yeac, and at sucn other -c.i.mt::;:, u.:: =::.• roc;oJ.ution the Council may
13 direct, an inventory shall be made of such personal property
and equipment belonging to tP~ City as is of a permanent nature
14 and classified as capital investment."
15 SECTION 2: That Title 3, of the Carlsbad Municipal Code
16 is amended by the amend1nent cf 3.32 to read as follows:
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19 Sections:
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3.32.010
3.32.020
3.32.030
3.32.040
"ChaEter 3.32
CLAIMS AND DEMANDS
Payment of Demands
Ratification of Payment
Refunds
Claims for Damage
3.32.010 Payment of Demands Demands, before payment, shall
23 be processed in accordance with the following procedure:,
24 (1) Demands other than payroll demands shall, before
payment, be duly certified:
25 (a) By the department head for whom the work was performed.
(b) By the Fin<-1.nce Director that such demands conform to
26 the budgetary allowances set forth by the City Council.
27 (2) Payroll demands shall, before payment, be duly certified
as follows:
2H (a) 1.rhe Department heads shall certify or approve depart-
mental attendance or payroll records for employees
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in their departments. The Finance Director shall
certify attendance or payroll records for other
officers and employees.
(3) After demands have been certified in accordance with
the for.egoing, the Finance Director shall prepare warrants upon
funds of the City as authorized by the City Council in appr.opriate
budgetary and salary resolutions. For other than payroll warrants,
the Finance Director shall indicate on each warrant the fund
from which such demands are to be paid and the purpose for which
such warrant is issued. The Finance Director shall then transmit
the prepared war.rants to the City Treasurer anu the Mayor for.
signature. The signature of the Mayor may be affixed by a
stamped facsimile of his signature.
3. 32. 020 Ratification of Payment of Demands 'I'he Finance
Director shall prepare for presentation at each regular City
Council meeting a register of demands, which shall represent
all financial demands made upon the City from and after the date
of the last register so prepared, for ratification by the City
Council. Payroll demands shall be included in a separate portion
of the register of demands. The Finance Director shall attach
thereto an affidavit certifying the accuracy of the demands and
the availability of the funds for payment thereof.
3. 32. 030 Refunds. (a) When not otherwise prohibited
by law the City Manager may authorize a refund in an amount
not to e~ceed $500 and the City Council may authorize a refund
for an amount in excess of $500 of all or ~art of any fee
collected pursuant to the Carlsbad Municipal Code in accordance
with the procedures of this section.
(b) A written request for refund, signed by the person
paying the fee or by the department head of the requesting de-
partment, shall be filed with the Finance Director setting
forth the facts and reasons which justify the request.
(c) The Finance Director shall investigate the request
and forward the request and his recommendation to the City
Manager.
(d) The City Hanager, in an amount not to exceed $500,
or the City Council, for an amount in·excess of $500, may
grant the request in whole or in part if they find that:
(1) The fee was paid under a mistake of law or
fact; or
(2) 'rhe consideration for which the fee was paid
has not been received and the City has no moral claim to the
money; or
(3) It is inappropriate and inequitable to retain
the fee, which in good conscience, equity and justice sqould
be returned; or
(4) A refund is necessary to prevent an extreme
hardship upon the person paying the fee for which such person
is not responsible.
(e) Upon receipt of proper authorization, the City Treasurer
shall make the refund."
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l. 3. 32. 04 0 Claims for Damage. No claim for damages against
the City shall ever be a.tJ.owed or paid unless there has been first
2 ~iled with the City Clerk and presented to the Council a claim
therefor within six months after the occurrence from which the
3 damages arose. All such claims for damages shall be first
verified by the claimant before an officer authorized to
4 administer oaths.
5 EFFECTIVE DATE: This ordinance shall be effective thirty
6 days after its adoption, and the City Clerk shall certify to
7 the adoption of this ordinance and cause it to be published
8 at least once in the Carlsbad Journal within fifteen days after
9 its adoption.
10 INTRODUCED AND FIRST READ at a regular meeting of the
11 Carlsbad City Council held on the 17th day of July , 1979 _ ___,,__ __
12 and thereafter
13 PASSED AND ADOPTED at a regula:r. meeting of said City Council
14 held on the 7th day of August , 1979 by the following
15 vote, to wit:
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AYES: Councilmen Packard, Skotnicki, Anear, Lewis and
Councilwoman Casler
NOES: None
ABSENT: None
20 RONALD c. PACKARD, Mayor
21 ATTEST:
22 _/
23 .f2ktj_4 O t@ldz::.,4~
ALE'l'HA L. RAUTENKRANZ, City C~k
24 (SEAL)
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