A.I. NUMBER: 605
SUBJECT: Purchasing and Accounts Payable Procedures
REFERENCE: Municipal Code 3.6.04(e); Governmental Accounting, Auditing and Financial Reporting; California Uniform Public Construction Cost Accounting Commission; Federal Uniform Guidance
SUPERSEDES: AI 106 (dated January 12, 1988); AI 402 (dated June 26, 1989); AI 104 (dated January 22, 1990); AI 605 (dated November 1, 1991); AI 605 (dated October 25, 2016); AI 605 (dated September 19, 2019); AI 605 (dated September 3, 2024); AI 605 (dated February 25, 2025)
DATE: May 6, 2025
TABLE OF CONTENTS
1. Purpose .................................................................................................................... 3
2. Ethics........................................................................................................................ 3
3. Policy ........................................................................................................................ 4
3.1 Purchasing Authority....................................................................................... 4
3.2 Approval Authority........................................................................................... 4
3.3 Monitoring Expenditures / Change Order Requests........................................ 5
3.4 Categories Requiring Purchase Orders .......................................................... 5
3.5 Contracts and Professional Services Contracts.............................................. 5
3.6 Change Orders ............................................................................................... 5
3.7 Purchases NOT Requiring Purchase Orders .................................................. 6
3.8 Grant Funded Expenditures............................................................................ 6
4. Procurement Process ............................................................................................... 6
4.1 When Formal Bidding Is Required .................................................................. 6
4.1.1 Public Projects and Maintenance............................................................... 6
4.1.2 Consultant / Professional Services (Excluding Legal) and Other General Purchases ................................................................................................................ 7
4.2 Procedures for Formally Advertising Bids ....................................................... 8
4.3 Sole Source Justification............................................................................... 10
5. Purchase Order Procedures ................................................................................... 11
5.1 Responsibility................................................................................................ 11
5.2 Submission Guidelines ................................................................................. 11 Docusign Envelope ID: B7C589DE-FEAF-4CBB-98C9-C2F0A822966C 279
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
May 6, 2025
5.3 Emergency Purchase Orders........................................................................ 12
5.4 Finance Department Purchase Order Process ............................................. 12
6. Claim Voucher Processing ..................................................................................... 13
6.1 Preparation of Claim Vouchers ..................................................................... 13
6.2 Timetable for Submitting and Processing Claim Vouchers ........................... 14
7. Petty Cash Processing ........................................................................................... 14
7.1 Reimbursements........................................................................................... 15
7.2 Reconciliation and Replenishment................................................................ 15
8. Cal-Card Purchases ............................................................................................... 15
9. Attachments............................................................................................................ 16 Docusign Envelope ID: B7C589DE-FEAF-4CBB-98C9-C2F0A822966C 280
Administrative Instruction No. 605
Purchasing & Accounts Payable Procedures
May 6, 2025
1. PURPOSE
The purpose of this Administrative Instruction is to provide the City of Emeryville a means of assuring continuity and uniformity in its purchasing operation, to establish policy guidelines for the cost effective and efficient purchase of services, supplies, materials, and equipment, to define the responsibilities for such purchases, and to implement the City’s Purchasing Ordinance, Chapter 6 of Title 3 of the Emeryville Municipal Code.
These guidelines are designed to provide financial oversight of the acquisition of goods and services, and monitoring vendors with whom the City conducts business. They are not intended to address every issue, exception, or contingency that may arise in the course of purchasing activities. The basic standard that should always prevail is to exercise good judgment in the use and stewardship of City resources, including keeping within the budget authorized by the City Council. This Administrative Instruction also establishes purchasing guidelines for competitive bidding of goods and services.
2. ETHICS
The purpose of this section is to provide a general code of conduct for all personnel who may be engaged in the City’s purchasing function. It is essential that all personnel involved in the procurement process conduct themselves in a manner that maintains impartiality and complete objectivity, to meet the continuing scrutiny of suppliers and the public. In dealings with the business community, it is necessary to exercise a strict rule of personal conduct to ensure that business relations are not compromised or even have the appearance of being compromised. The City’s reputation for fairness and integrity in dealing with suppliers and others must always be maintained.
The following are the City’s standards in ethics for purchasing:
A. To buy on the basis of value, recognizing that value represents a combination of quality, service and price which assures the greatest economy to the City.
B. To recognize that permanent business relationships should be established on the basis of honesty and fair dealings.
C. To be courteous and considerate in all City dealings.
D. To avoid statements that might injure or discredit legitimate suppliers and to avoid disclosure of confidential information that might give an unfair advantage in a competitive business transaction.
E. To adjust claims and settle disputes on the basis of facts and fairness.
No City employee shall participate in a purchase if the purchase involves purchasing goods, services or equipment from the City employee or the City employee’s spouse, partner, or family member.
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Administrative Instruction No. 605
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May 6, 2025
3. POLICY
These policies primarily cover items that require a Purchase Order (P.O.) and involve the use of Claim Vouchers. Purchase orders provide a mechanism for encumbering budgeted funds and ensure that the purchase of goods is approved by the appropriate department manager or his/her designee.
3.1 Purchasing Authority
The City Manager is the official Purchasing Officer for the City of Emeryville and for the City of Emeryville as Successor Agency for the Emeryville Redevelopment Agency (RDA), the Emeryville Public Financing Authority, the Management of Emeryville Services Authority, and the Emeryville Community Development Commission (collectively, “the City”). The City Manager may delegate purchasing authority to a Department Head.
Department Heads are responsible for reviewing, planning, and authorizing department needs, subject to the City Manager’s review and approval.
Officers or employees of the City are prohibited from contracting for goods and/or services, supplies, materials, equipment contrary to the provisions of Chapter 3-6.09 of the City of Emeryville’s Municipal Code. Such purchase orders or contracts shall be void.
3.2 Approval Authority
A. Purchase Order Requisitions (Exhibit B) must be signed by the Department Head or designee regardless of the purchase level. Following are authority levels and dollar thresholds:
Department Head or Designee per vendor per fiscal year $0 - $25,000 City Manager per vendor per fiscal year
(approves all Purchase Orders over $25,000)
$25,000 - $75,000
City Council / Agency Body Resolution Over $75,000
B. The practice of stringing or splitting of P.O.’s to circumvent the approval levels and dollar thresholds is prohibited.
C. Designees are recognized once an Authorized Designee memo is received by the Finance Department (Exhibit C). This memo is completed by the Department Head to authorize the designee, provide a sample signature of designee and a list of what the designee may approve.
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D. P.O.’s that are split between departments, or if the ordering department and the department being charged are different, the P.O. shall be signed and approved by both Department Heads.
E. Capital outlay items which have a capitalization dollar threshold of $25,000 will by default require City Manager approval.
F. Computer-related and telecommunication equipment and license purchases shall also be approved by the Information Technology Manager or their designee.
G. All cost recovery account, retention and deposit refunds must be approved by a finance manager/designee.
3.3 Monitoring Expenditures / Change Order Requests
Departments are responsible for tracking charges against a purchase order. If the funding is exhausted, or the scope of the service changes, the department must prepare and submit a Change Order request (Exhibit D). Please note that change in the scope of services may necessitate an amendment to the PSC or other original contract, and such amendment is separate and distinct from a Change Order.
The Change Order request shall be prepared as soon as the department is aware that the funds are exhausted or the scope of the service has changed. The department should act in an expeditious manner so that payment to the vendor is not delayed. Refer to the City’s Purchasing Procedures below for detailed instructions on the preparation of Change Orders.
3.4 Categories Requiring Purchase Orders
A. Supplies and services over $25,000
B. All contracts and Professional Service Contracts (PSC’s) C. All capital outlay purchases (equipment costing $25,000 or more)
3.5 Contracts and Professional Services Contracts
After the contract has been approved and signed by both the City Attorney and the vendor, the P.O. Requisition should be prepared and presented to the City Manager along with the contract for final approval. A copy of the signed contract or agreement (along with the P.O. requisition, insurance certificate plus endorsement, W-9, business license, and resolution if applicable) must be submitted to Finance for P.O. processing.
3.6 Change Orders
P.O. Change Orders require the same documentation as P.O. Requisitions, except Change Orders are prepared using a manual form (per Exhibit D). The P.O. number shall remain the same and should be noted on the manual form. This is submitted to Finance for processing.
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May 6, 2025
3.7 Purchases NOT Requiring Purchase Orders
1. Office supplies under $25,000
2. Professional membership dues and subscriptions
3. Conferences and meetings
4. Training expenditures
5. Travel costs, reimbursements, refunds
6. Utility bills (electricity, gas, water, garbage, fuel, telephone, etc.)
7. Rental payments (building rents, equipment rentals, etc.)
8. Real estate transactions and escrow transactions – approved by the City Council and/or Successor Agency. This includes First Time Homebuyers or other similar programs.
9. General administrative expenses such as taxes, insurance, fees, and legal bills.
10. Contracts for Community Services Classes with recreational class instructors who are paid based on a percentage of class revenue, or a fixed compensation based upon the rate per class.
11. Professional Services Contracts (PSC’s) that contain one-time purchases under $25,000 can be submitted with a Claim Voucher in lieu of a Purchase Order.
3.8 Grant Funded Expenditures
Any purchases made with federal, state or other grantor funds must be made in compliance with the funding agency’s procurement policies as documented in the Grant Management Policy & Procedures A.I. 115 dated November 29, 2011 (or the revised A.I.).
Federal procurement is controlled both by the funding agency procurement policy as well as federal policy as expressed in 2 CFR Part 200 regarding Cost Principles. Please refer to Exhibit A regarding Uniform Guidance Procurement Standards. Any requirements in an executed grant agreement supersede any preferences or policies listed within this A.I.
4. PROCUREMENT PROCESS
Departments are encouraged to solicit bids or proposals for all purchases to ensure the City is obtaining competitive rates for its supplies, services, and equipment, as set forth herein.
4.1 When Formal Bidding Is Required
4.1.1 Public Projects and Maintenance
The City is subject to the “Uniform Public Construction Cost Accounting Act” (PCC § 22000 et seq.) (“UPCCAA”). (See Resolution No. 03-46.) Under UPCCAA, a “public project” is defined to mean any of the following: (1) construction, reconstruction, erection, alteration, renovation, improvement, demolition, installation, and repair work involving any Docusign Envelope ID: B7C589DE-FEAF-4CBB-98C9-C2F0A822966C 284
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publicly owned, leased, or operated facility; (2) painting or repainting of any publicly owned, leased, or operated facility; (3) [omitted] (“public project”). (PCC § 22002(c).) A public project does not include maintenance work. Maintenance work includes all of the following: “(1) routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; (2) minor repainting; (3) resurfacing of streets and highways at less than one inch; (4) landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; (5) [omitted].” (PCC § 22002(d).) Under PCC § 22032(a), public projects of $75,000 or less may be procured with the following options:
1. The public project may be performed by City employees by force account; or
2. The City may negotiate a contract for the project.
Under PCC § 22032(b), public projects of $220,000 or less may be procured by following the informal bidding procedures as outlined in Chapter 9 of Title 7 of the Emeryville Municipal Code.
Under PCC § 22032(c), public projects of more than $220,000 must, except as otherwise specified in UPCCAA, be let to contract by formal bidding procedure, as set forth herein and in UPCCAA.
Maintenance work (as defined in PCC § 22002(d)) is exempt from bidding requirements.
4.1.2 Consultant / Professional Services (Excluding Legal) and Other General Purchases
A. The following requirements apply to general purchases such as supplies, equipment and leases, and consultant/professional services (excluding legal), except for “architectural and engineering services” as defined in B., below:
1) For purchases up to $5,000 (cumulative amount of contract), there are no specific bidding requirements, but competitive bidding should be used when practical. Departments may award the contract for purchase. For purchases greater than $5,000, and up to $75,000 (cumulative amount of contract), the Department must solicit three written quotations (“Informal Bidding Procedures”) and submit an Addendum for Purchasing Supplies, Services and Equipment Form to the City Manager, with a recommendation for the award of the contract.
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2) For purchases above $75,000, the Department formally advertises for sealed bids, in accordance with Chapter 6 of Title 3 of the Emeryville Municipal Code, if procuring supplies, materials, or equipment, or issues a Request for Qualifications or Proposals1if procuring consultant or professional services. The Department submits the results to the City Manager for assessment. If the contract exceeds $75,000, the City Manager makes the recommendation for the award of the contract and submits to the City Council for approval. If it is anticipated that the same vendor will be providing the same services for several years, the project manager should consider entering into a multi-year contract. If the multiyear contract would exceed the City Manager’s $75,000 threshold in authority to contract, then the Council must approve the multi-year contract.
Contracts should not be limited to one year terms for the sole purpose of satisfying the City Manager’s contracting authority.
B. All contracts for “architectural and engineering services,” which is defined in Government Code § 4529.10 to include all architectural, landscape architectural, environmental, engineering, land surveying, and construction project management services, must be procured pursuant to a fair, competitive selection process as specified in Government Code § 4529.12, using either a Request for Qualifications or Proposals or a similar fair, competitive selection process approved by the City Attorney.
Contracts with an on-going nature, or which provide services on an as-needed basis should be procured at least every five years.
4.2 Procedures for Formally Advertising Bids
When contracts for public works projects are required to be formally bid as set forth in this policy, the advertising of the bid shall adhere to the procedures set forth in this administrative policy in addition to the requirements imposed by State law.
1. The City Clerk shall publish the legal notice inviting bids twice, the first publication at least fourteen (14) days before the date of bid opening. Prior City Council authorization is not required. Notice shall be published in newspaper of general circulation.
a. The notice inviting bids shall distinctly describe the project, specify the place where bid blanks and specifications may be secured, and state the time and place for receiving and opening sealed bids.
b. The Department Head shall approve all formal bid notices and bid forms prior to distribution.
1 The City Clerk’s Office maintains a template that may be used for a Request for Qualifications or Proposals.
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2. The department shall solicit bids from all responsible prospective contractors whose names are on the bidder’s list when such a list is available.
3. The notice inviting formal bids shall also be sent electronically, if available, by either fax or email and mailed to all construction trade journals specified in Public Contract Code § 22036. The notice shall be sent at least fifteen (15) calendar days before the date of opening the bids.
4. The solicitation of bids shall be posted on the City’s website at least ten (10) days before the date of bid submittal.
5. All bids must be submitted to the City Clerk’s office by the time established for submittal. Bids must be sealed and enclosed in an envelope marked “Bid Enclosed”.
6. The report to Council on bid award should include the tabulation of bids with a recommendation for the award of the contract. If the award is $75,000 or less in value, the City Manager may award the contract.
7. The awarding authority shall award the contract within sixty (60) days from bid submittal or as specified in the bid documents.
8. In accordance with the general laws of the State, the awarding authority may, at its discretion, reject any bids presented and re-advertise for bids, abandon the project, or have the work performed by City employees. (See PCC § 22038.)
9. If two (2) or more bids received are the same and the lowest, the Council may accept the one it chooses.
10. Bidder’s security is required:
a. Bidders shall be entitled to the return of bid security after award of contract.
The City Clerk’s office shall be responsible for retaining the bid security and returning it to the appropriate bidders.
b. A successful bidder shall forfeit its bid security, however, upon refusal or failure to execute the contract within ten (10) days after notice of the award of the contract has been mailed.
c. The Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. d. If the Council awards the contract to the next lowest responsible bidder, the amount of the lowest responsible bidder’s security shall be applied by the City to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
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11. A payment bond in the amount of 100% of the contract price is required if the contract exceeds $25,000. The City Manager shall have the authority to require a performance bond in such amount as determined necessary for the best interests of the City. The successful bidder must provide the required bond(s) before entering a contract. The form of required bonds shall be determined by the City Manager.
12. A file of formal bids shall be maintained in the City Clerk’s office for a period of two years and be open for public inspection.
13. The department shall notify the successful bidder by forwarding a purchase order or other official notice.
14. In its discretion, the awarding authority may waive any immaterial informalities or irregularities in the bids.
15. If it is necessary to make changes in the notice to bidders or changes in specifications, an amendment, or addendum to the bid specifications shall be issued by the Department Head to all prospective bidders setting forth the changes.
4.3 Sole Source Justification
Exceptions to the bidding requirements as outlined above include:
1. The purchase is made through the Department of General Services of the State.
2. The purchase is combined with that of another public agency, provided such public agency followed the competitive bidding practices which comply with the legal requirements applicable to such agency.
3. The supplies, materials and equipment are only available from a single source.
4. For services, as waived by the awarding authority2for good cause.
5. An emergency.
6. Maintenance work as defined in Public Contract Code § 22002(d).
Compliance with this AI would defeat the purpose of this AI and Emeryville Municipal Code section 3-6.01 and result in procurement of services, supplies, materials, or equipment at a higher cost that was not commensurate with the quality needed.
If a sole source contract is being recommended, complete an Addendum for Purchasing Supplies, Services and Equipment Form explaining why the City requires the goods and/or services from the selected vendor. The Purchase Order Requisition shall be attached to the memo. Approval authority for purchases is as outlined in Section 4.2.
2 In applying this policy to a specific contract, as used herein, awarding authority refers to either the City Council or the City Manager, depending upon who awards the contract at issue.
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Administrative Instruction No. 605
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May 6, 2025
5. PURCHASE ORDER PROCEDURES
5.1 Responsibility
Purchase Order Requisitions are prepared by the department initiating the purchase. The department must ensure that all of the proper approvals and signatures relating to the purchase, required forms, and supporting documentation have been secured. As noted in Section 4.2, the practice of stringing or splitting of purchase requisitions to circumvent this Administrative Instruction is prohibited. The requisitioning department is responsible for submitting the necessary forms and supporting documentation to Finance in a timely manner to avoid delays in vendor payments. Following are submission guidelines, and the required forms.
5.2 Submission Guidelines
The requisitioning department must complete the Purchase Order Requisition form manually or by utilizing the City’s financial software (preferred method). The following information is required to ensure the prompt and efficient processing of the purchase:
1. Vendor name and address (include vendor number if available)
2. Completed W-9 (for new vendors)
3. Item description and quantity
4. Cost for each item, and estimated shipping and taxes
5. Project number (if applicable)
6. Department/division(s) and account(s) to be charged
7. Specify if the purchase is standard or urgent (emergency purchase)
8. Urgent purchase requisitions must have a memo detailing the nature of the emergency
9. Sole source or single source purchases require an Addendum for Purchasing Supplies, Services and Equipment Form signed by the City Manager to justify the sole/single source
10. Copy of signed contract, if required
11. Copy of Council approved resolution, if required
12. Appropriate approvals
13. Bid memo (Addendum for Purchasing Supplies, Services and Equipment Form signed by the City Manager), if required
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May 6, 2025
5.3 Emergency Purchase Orders
Sometimes an emergency occurs which makes it necessary to purchase items without the benefit of competitive bidding. The guidelines outlined herein are intended to define emergency criteria for the purpose of purchasing equipment, goods, and services:
A. To avoid and/or mitigate the immediate danger to life, health, safety, or property, B. In the event of a natural disaster,
C. Facilitate the continued performance of critical City operations or services, D. Immediate action is required to avoid great financial loss.
Unforeseen emergency occurrences that do not provide the City an opportunity to obtain competitive quotes or provide for the encumbrance of the committed funds, shall rely on sound judgment to keep these orders to a minimum.
In the event of an emergency, as defined above, the procedures are as follows:
1. The department shall make every effort to solicit bids from qualified vendors, if time allows and it is feasible to do so.
2. Purchase Order Requisitions must have all the proper approvals and supporting documentation as outlined in this AI. In addition, approval by the City Manager or designee is required for all emergency purchases exceeding $25,000.
3. It is understood that emergencies may occur during non-business hours and/or designated Finance staff may be unavailable. However, it is the responsibility of the requesting department to make every effort to obtain an Emergency Purchase Order Number in advance of the purchase.
4. If the department is making a purchase which may be eligible for reimbursement for funds distributed by the Federal Emergency Management Agency or any other federal funds, emergency purchases may need to comply with 2 CFR Part 200.
Consult with the City Attorney.
5.4 Finance Department Purchase Order Process
1. Completed Purchase Order Requisitions received in Finance by 5:00 p.m. on Tuesday will be assigned a Purchase Order number and processed by the following Wednesday.
2. Incomplete Requisitions will be returned to the department with reason(s) of return.
Common reasons include lack of funds in the account and/or project to be charged, incomplete documentation and/or authorization, and/or missing Council Resolution.
3. Urgent Purchase Order requests follow the procedures outlined in the Emergency Purchase Order section of this AI.
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May 6, 2025
4. Finance staff responsible for Accounts Payable will process the Purchase Order and email an electronic copy (PDF) to the requesting department. The department is responsible for providing a copy to the vendor as appropriate.
5. Funds are encumbered once the Purchase Order has been processed and posted to the general ledger of the City’s financial system.
6. CLAIM VOUCHER PROCESSING
6.1 Preparation of Claim Vouchers
A. Departments are responsible for preparation of claim vouchers (Exhibit E) for payment of invoices. Assuming there are no errors or discrepancies, vouchers should be prepared within five (5) business days of receipt of invoice.
B. Merchandise received by department must be thoroughly checked. Item(s) must be verified against packing slips and Purchase Order to ensure item received is exactly as specified. Invoice and Claim Voucher should NOT be signed off until all merchandise/services have been satisfactorily received.
C. The department is responsible for tracking the charges against a Purchase Order.
If a Purchase Order runs out of money or the scope of service changes, the department must submit a (manual) Change Order request before the vendor can be paid. The Change Order Request should be done as soon as you become aware of a change so as not to delay payments to the vendor. If the service is under contract, the contract will also require amendment and City Manager and/or Council approval.
D. Claim Vouchers should include the following information:
1. Purchase Order Number, if applicable. This number is vital to ensure the invoice is charged against the encumbrance, rather than the budget.
2. Construction vouchers must include a Purchase Order number and an invoice signed by the contractor. The gross amount due less retention, if applicable, should be detailed on the voucher.
3. Vendor number. Please verify this number in the City’s financial software and include it on the claim voucher.
4. Completed W-9 (for new vendors).
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May 6, 2025
5. Fund, department/division and budget account(s) to be charged. Project and account, if applicable. Use correct account coding for purchases whether or not your division has a budget for that line item. For instance, you may code a purchase of books to Books, Maps, & Periodicals to Account #73100 even if your department did not budget for that line item.
The department must be cognizant of the department’s bottom line. If no account number is listed, the voucher will be returned to the Department. If the voucher includes multiple items and account coding is not listed for each item, Accounts Payable will charge the last account listed.
6. Appropriate approvals as described in Section 4.2 (Approval Authority).
6.2 Timetable for Submitting and Processing Claim Vouchers
1. Department must submit completed and approved Claim Vouchers with supporting documents to Finance Department by 5:00 p.m. on Tuesday, to be processed for payment by the following Wednesday.
2. Departments are encouraged to submit Claim Vouchers and invoices any time prior to the cut-off date in order to minimize the volume to be processed.
3. Finance processes the Claim Vouchers and payments weekly and produces the warrants for inclusion on the Council and Successor Agency agendas.
7. PETTY CASH PROCESSING
Petty cash is used for small, incidental expenditures that would be impractical to process through the regular accounts payable process. City-authorized expenditures that are $50 or less may be reimbursed through petty cash. The petty cash fund shall be maintained and safeguarded in a safe with limited access. Three petty cash funds are currently authorized by the Finance Director.
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May 6, 2025
The departments, amounts and administrators (positions, in italics) of the City’s petty cash funds are listed below:
Finance Department
(Cashier / Business License Technician) $450.00
Community Services Department
(Supervisor)
Childcare Center
Senior Center
Emeryville Center of Community Life
$300.00
$300.00
$600.00
Police Department
(Police Services Manager) $350.00
7.1 Reimbursements
To receive a reimbursement, employees should complete an Expense Reimbursement Form (Exhibit F) noting their name, the date, amount requested, a description of the expense, and the division/department and account(s) to be charged. The original receipts should be attached before forwarding it to the appropriate Department Head (depending on department/division being charged) for signature. The approved request should then be presented to the petty cash administrator to receive the funds. Reimbursement for City expenses using personal funds is discouraged, and employees should make every reasonable effort to avoid having to use personal funds to cover City expenses.
7.2 Reconciliation and Replenishment
The petty cash administrator is responsible for reconciling and replenishing the fund as needed. Petty cash vouchers will be summarized and entered onto a Claim Voucher form made payable to the person responsible for the funds. All original petty cash vouchers and receipts should be attached to the claim voucher before submitting to the Department Head for approval. Upon approval, the voucher will be forwarded to Accounts Payable for processing and payment. Periodic audits will be performed by a Finance manager or delegate to ensure compliance with these procedures.
8. CAL-CARD PURCHASES
The State of California’s Department of General Services (DGS) developed a Master Service Agreement with U.S. Bank to provide VISA bank cards to State and local government employees as a payment method for small purchases of goods and services.
This unique government credit card has the employee’s name embossed on it and is identified as a State of California VISA card which is also known as the “CAL-Card”.
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May 6, 2025
The CAL-Card, when used to purchase goods or services, promotes increased supplier/ contractor acceptance, improves the timely delivery of products and services, and reduces certain business-related costs. For example, using this card will centralize invoice processing and provide opportunities for greater efficiencies. This program allows for a 45-day payment cycle, along with rebates for early payments. The CAL-Card program is not intended to and will not be used to circumvent any existing statues or laws, or City purchasing procedures and policies. The use of CAL-Card will be closely managed to ensure the cards are being used efficiently and appropriately. The CAL-Card will only be issued to regular City employees. Cardholders are prohibited from using the CAL-CARD for personal expenses, even if the cardholder intends to reimburse the City for the personal expense.
For additional information on the guidelines, responsibilities and use of the CAL-Card, please refer to the “Cardholder Acceptance Letter and Cardholder Guide” which is required to be signed by all cardholders prior to being issued a card.
APPROVED:
LaTanya Bellow, City Manager
9. ATTACHMENTS
1. Exhibit A: Uniform Guidance Procurement Standards
2. Exhibit B: Purchase Order Requisition Form
3. Exhibit C: Department/Division Authorized Designee(s) Form
4. Exhibit D: Purchase Order Change Order Form
5. Exhibit E: Claim Voucher Form
6. Exhibit F: Expense Reimbursement Form
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CITY OF EMERYVILLE
RESERVE POLICIES
USE OF RESIDUAL PROPERTY TAX REVENUE
(Updated March 4, 2025 by the City Council)
The City believes that maintaining adequate reserves reflects an ability to manage risk as well as provide working capital to meet operational and capital needs. The City has established certain reserve policies, such as an Economic Uncertainty Reserve Fund to provide a reserve for State budget impacts and other fiscal emergencies.
In FY2011-12, due to the dissolution of the Emeryville Redevelopment Agency and the requirements of AB 26 and AB 1484, the City began receiving residual property tax revenue. The City adopted, and amended, this residual property tax reserve policy in June 2016 and again as part of the FY2019-2021 Budget to maintain a reserve committed to the use of residual property tax revenue for capital improvements, affordable housing, economic development, public art and general purposes. The Policy was revised to reflect a 2.5% allocation to support Public Art programs starting in FY2019-20 and an additional 25% allocation to the General Fund effective FY2020-21. The allocation to the General Capital Improvement Fund was reduced to 47.5% in FY2019-20 and to 22.5% effective FY2020-21.
Effective March 4, 2025, the City Council adopted a policy to increase the General Fund allocation from 50% to 100% with reductions in allocations to other funds as detailed in the following chart. This change will bring additional funds into the General Fund to support operational needs
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GLOSSARY
The City’s budget contains specialized and technical terminology that is unique to public finance and budgeting. To help the reader understand the terms, a glossary of budgetary terminology has been included in the document.
ACCOUNT – A subdivision within a fund for the purpose of classifying transactions.
ACCRUAL BASIS OF ACCOUNTING – The method of accounting under which revenues are recorded when they are earned (regardless of when cash is received) and expenditures are recorded when goods and services are received (regardless of when disbursements are actually made at the time).
ADOPTED BUDGET – Revenues and appropriations approved by the City Council in June for the following fiscal year.
ALLOCATED COSTS – An expense charged by one department/division to another for services performed or expenditures of a general nature that are charged to one main account and allocated to other departments/divisions by a specified formula.
APPROPRIATION – Legal authorization granted by City Council to make expenditures and incur obligations for a specific purpose within a specific time frame.
APPROPRIATION LIMIT – As defined by Section 8 of Article XIIIB of the California Constitution, enacted by the passage of Proposition 4 at the November 6, 1979 general election, the growth in the level of certain appropriations from tax proceeds are generally limited to the level of the prior year’s appropriation limit as adjusted for changes in cost of living and population. Other adjustments may be made for such reasons as the transfer of services from one government entity to another.
ASSESSED VALUATION – A dollar value placed on real estate or other property by the County as a basis for levying property taxes.
ATTRITION – The unpredictable and uncontrollable, but normal, reduction of work force due to resignations and retirements.
AUDIT – A review of the City’s accounts by an independent auditing firm to substantiate fiscal year-end balances and assure compliance with generally accepted standards for financial accounting and reporting.
BALANCED BUDGET – Where budgeted operating revenues cover or exceed budgeted non-capital operating expenditures, avoiding budgetary procedures that balance current expenditures at the expense of meeting future years’ expenses such as postponing expenditures or accruing future years’ revenues.
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BOND – A municipal bond is a written promise from a local government to repay a sum of money on a specific date at a specified interest rate.
BUDGET – A plan of financial operation, including an estimate of proposed expenditures/expenses for a given period (typically a fiscal year) and the proposed means of financing them (revenue estimates). Upon approval by the City Council, thebudget appropriation resolution is the legal basis for expenditures in the fiscal year.
BUDGET AMENDMENT – A legal procedure utilized by the City Manager to revise a budget appropriation during the year. Adjustments to expenditures within or between department budgets may be accomplished administratively. City Council approval is required for additional appropriations from fund balances or new revenue sources.
BUDGET YEAR – The fiscal year for which the budget is being considered; fiscal year following the current year.
CAPITAL BUDGET – Annual appropriations for capital improvement projects such as street improvements, building construction and various kinds of major facility maintenance. Capital projects are supported by a five-year expenditure plan, which details funding sources and expenditure amounts. They often are multi-year projects,which require funding beyond the one-year period of the annual budget.
CAPITAL IMPROVEMENT PROGRAM (CIP) – A financial plan of authorized expenditures for tangible, long-term construction of, or improvements to, public physical facilities.
CAPITAL OUTLAY – A budget appropriation category which budgets all equipment,land or other fixed assets having a unit cost of more than $5,000 and an estimated useful life of over five years.
CAPITAL PROJECT FUND – A governmental fund used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds.
CARRYOVER OR CARRY FORWARD – Process of carrying a budgeted and encumbered item from the current fiscal year to the next fiscal year.
CASH BASIS OR CASH METHOD – An accounting method that recognizes income and deductions when money is received or paid. The modified accrual method is the preferred method for government organizations.
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) - One of the longest-running programs of the U.S. Department of Housing and Urban Development, funds local community development activities such as affordable housing, anti-poverty programs, and infrastructure development.
CONTINGENCY – An appropriation of funds to cover unforeseen events that occur during the fiscal year.
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COST RECOVERY – The establishment of user fees that is equal to the full cost of providing services including indirect overhead and administrative costs.
DEBT SERVICE – Payment of the principal and interest on an obligation resulting from the issuance of bonds, notes or leasing arrangements.
DEBT SERVICE FUND – A governmental fund used to account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the government is obligated in some manner for the payment.
DEFICIT – An excess of expenditures or expenses over revenues (resources).
DEPARTMENT – An organizational unit comprised of divisions or programs. It is the basic unit of service responsibility that may include a broad mandate of related activities.
ENCUMBRANCE – A contingent liability, contract, purchase order, payroll commitment, tax payable, or legal penalty that is chargeable to an account. It ceases to be an encumbrance when paid-out or when the actual liability amount is determined and recorded as an expense.
EMERGENCY OPERATION CENTER (EOC) – A location from which centralized emergency management can be performed. EOC facilities are established by an agency or jurisdiction to coordinate the overall agency or jurisdictional response and support to an emergency.
EXPENDITURES – Monies spent, including current operating expenses, debt service and capital outlays.
EXPENSE – The actual spending of funds by an enterprise fund set-aside by an appropriation.
FISCAL SUSTAINABILITY - The ability of a government to sustain its current spending, tax and other policies in the long run without threatening government solvency or defaulting on some of its liabilities or promised expenditures.
FISCAL YEAR – The City’s year for accounting and budgeting purposes, which begins on July 1 and ends on June 30.
FORECAST – Estimate of the future impact of current revenue and expenditure policies based on specific assumptions about future conditions such as inflation or population growth. Forecasts are neither predictions about the future nor a statement of policy intentions.
FULL-TIME EQUIVALENT (FTE) – The amount of time a regular full or part-time position has been budgeted for in terms of the amount of time an employee works in a year. The City of Emeryville uses 1,000 hours to calculate the number of seasonal and part-time employees.
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FUND – An independent fiscal and accounting entity used to record all financial transactions related to the specific purpose for which the fund was created.
FUND BALANCE – The amount of financial resources available for use. Generally, this represents the detail of all the annual operating surpluses and deficits since the fund’s inception.
GENERAL FUND – The primary fund used to account for all revenues and expenditures of the City not legally restricted as to use. This fund is used to offset the cost of the City’s general operations. Examples of departments financed by the General Fund include the General Government, Police, Public Works, Recreation, and other departments.
GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) - A professional organization of public officials united to enhance and promote the professional management of governmental financial resources by identifying, developing and advancing fiscal strategies, policies, and practices for the public benefit.
GOVERNANCE – The process of providing community leadership and overall directionfor a City. It involves understanding the community’s desires for its future, focusing those desires into an achievable vision and establishing specific objectives and goals inorder to realize that future vision. It also involves leadership in explaining City policies to the community and gathering support for City programs.
GRANT – Contributions, gifts of cash or other assets from another governmental entity to be used or expended for a specific purpose, activity or facility.
INFRASTRUCTURE – Facilities on which the continuance and growth of a community depend, such as streets and roads, sewers, public building, parks, etc.
INTERFUND TRANSFER IN/OUT- Monies transferred from one fund to another. Such money is transferred to finance the operations of another fund or to reimburse the fund for certain expenditures such as administrative support.
INTERNAL SERVICE FUND – A fund used to account for the services provided by one department to other departments on a cost-reimbursement basis.
MUNICIPAL CODE – A book that contains the City Council-approved ordinances currently in effect. The Code defines City policy. The Code contains the “laws” of the City.
OTHER POST EMPLOYMENT BENEFITS (OPEB) - The benefits that an employee will begin to receive at the start of retirement. This does not include pension benefits paid to the retired employee.
OPERATING BUDGET – Annual appropriation of funds for on-going program cost, including salaries and benefits, services and supplies, debt service and capital outlay.
ORDINANCE – A formal legislative enactment by the City Council. It has the full force and effect of law within City boundaries unless preempted by a higher form of law. An ordinance has higher legal standing than a resolution.
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RECOMMENDED BUDGET – The financial and operating document submitted by the City Manager to the City Council for consideration.
RESERVE – an account used to record a portion of the fund balance as legally segregated for a specific use, usually at a future time.
RESOLUTION – A special order of the City Council, which has a lower legal standing than an ordinance.
REVENUES – Monies received or anticipated by a local government from both tax and non-tax sources during the fiscal year. Revenues include income from user fees, taxes, permits and other sources.
SALARIES AND BENEFITS – A budget category which generally accounts for full-time and part-time employees, overtime expenses and all employee benefits, such as medical, dental and retirement.
SECTION 115 TRUST – Employer assets placed in a trust which is used for the designated purpose of prefunding other post-employment benefits.
SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY – The primary purpose of the Successor Agency is to administer the wind down of the previous Redevelopment Agency’s operations which entails continued payment for financial obligations and fulfillment of contractual obligations entered into the SuccessorAgency prior to the enactment of Assembly Bill 26, which caused the dissolution of all Redevelopment Agencies in California.
TRANSIENT OCCUPANCY TAX (TOT) – This tax is collected from the operators of hotels and motels located within the City. A percentage of this tax is then remitted tothe City.
UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAL) – In regard to Pension, the amortized dollar amount needed to fund past service credit earned (or accrued) for members who are currently receiving retirement benefits, active members, and for members entitled to deferred benefits, as of the valuation date.
USER FEES – Fees charged to users of a particular service provided by the City. 300
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