REPORT TO COUNCIL
SUBJECT
Title
Action on Bills and Claims Report (CC, HA, SA) for the period June 12th, 2021 - August 27th, 2021
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
Disbursements made by the City are based on invoices submitted for payment. Prior to payment, staff reviews all disbursement documents to ensure they are reflective of the goods or services provided. Invoices are usually paid within 30 days of receipt of an accurate invoice. As the final step, the City Auditor, or her designee verifies all documents before payment is issued. Payments are issued through accounts payable checks and wire transfers. It’s important to note that items that pertain to the Stadium Authority are billed to the Stadium Manager (ManCo) to pay on behalf of the Stadium Authority for Non-NFL events and the 49ers for NFL events.
This report covers a longer period than usual. Ordinarily, the Auditor’s office presents a monthly report to Council for consideration. The reason for the delay was for the Auditor’s office and IT to work together to improve the presentation of the report and simplify the payment reconciliation process for staff.
The Bills and Claims Report represents the cash disbursements required for operations of the City during the period. The report reflects the payment date, invoice number, description of the payment, funding source, and payment amount for all invoices. The budget control is set by the City Council through the budget adoption process.
DISCUSSION
Significant expenditures in this period include:
• Payment to CalPERS in the amount of $45,442,912 for Fiscal Year 2021/22 pre-paid unfunded pension liability.
• Payment to Northern California Power Agency in the amount of $29,440,822 for July and August 2021 all resources bill and Western Restoration Fund.
• Payment to Bank of New York Mellon in the amount of $14,661,948 for principal and interest payments of the Electric Revenue bonds.
• Payment to MSR Public Power Agency/Energy Authority in the amount of $11,848,055 for May through August 2021 energy purchases.
• Payment to City of San Jose in the amount of $10,172,310 for San Jose-Santa Clara Regional Wastewater Facility (RWF) for first quarter of Fiscal Year 2021/22 O&M billing and purchase of recycled water and various utility payments for April through June 2021.
• Payment to California Environment Protection in the amount of $6,508,934 for bid guarantee for the August 2021 Joint Auction to allow the City to potentially procure up to 267,000 carbon allowances for quarter ended June 30,2021.
Payments to ManCo are not included in the City’s Bills and Claims report as they are reported through a separate Stadium Authority Bills and Claims report. Stadium Authority related payments in the City’s Bills and Claims report include general administrative, materials, and supplies expenses of approximately $149,355. Included in this amount is $138,928 to Alliant Insurance Services Inc., for FY2021-22 Accidental Death and Dismemberment Policy for the “Double-Badgers” employed by the Police Department from other public safety agencies to provide public safety for special events at the Stadium. These costs are budgeted in General Fund and reimbursable by 49ers/Manco. A separate Stadium Authority Board action is being prepared for full disclosure and transparency of these expenditures.
Certain information such as names of law firms and recipients of workers’ compensation have been redacted from the Bills and Claims report. The Supreme Court of California in Los Angeles County Board of Supervisors v. Superior Court, (2016) 2 Cal.5th 282, held that invoices specifying the amounts billed by a law firm to a client fall within the scope of attorney-client privilege while the matters are active. In accordance with the Supreme Court’s ruling, the names of law firms retained by the City have been redacted from the public report to maintain confidentiality of billing records for legal services. In addition, individually identifiable information about recipients of workers’ compensation has been redacted from the report based on California Labor Code section 138.7.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
The expenditures of $208,341,341 were appropriated to various funds with the adoption of the Fiscal Year 2020/21 and 2021/22 Budget, as amended.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
Approve the list of Bills and Claims for June 12, 2021 - August 27, 2021.
Staff
Reviewed by: David Noce, Audit Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bills and Claims Approved for Payment Report June 12, 2021 - June 30, 2021
2. Bills and Claims Approved for Payment Report July 1, 2021 - July 31, 2021
3. Bills and Claims Approved for Payment Report August 1, 2021 - August 27, 2021