Agenda

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11.

City Council Regular

Meeting Date:

01/28/2025

SUBJECT:

UPDATES TO THE ADMINISTRATIVE POLICIES AND PROCEDURES MANUAL

RECOMMENDATION:

Approve updates to the Administrative Policies and Procedures Manual for the following policies:

Section 4.1 - Capital Assets
Section 4.4 - Fraud in the Workplace
Section 8.8 - Surplus Property

BACKGROUND/ANALYSIS:

Since the initial adoption of the Policy Manual in 1994, it has been standard practice that new policies, policy updates, and policy deletions have been presented to City Council for approval and/or adoption. These periodic updates are needed due to the adoption of new or revised laws, Municipal Codes, Resolutions, and Ordinances, and changes to operational procedures. The following are brief explanations for the updates and additions as applicable:

Section 4.1 - Capital Assets

The capitalization threshold has been increased from $5,000 to $10,000 to align with Section 2 CFR 200.313 of the Code of Federal Regulations.
The estimated useful life of equipment has been adjusted from 3-12 years to 5-20 years to better reflect the actual lifespan of City assets, and leases/Subscription Based Information Technology Arrangements have been added to the intangible assets section with a lifespan of 1-10 years.
Wording has been added to the Impairment section to clarify what constitutes a significant decline in utility, specifically a decrease in value of over $100,000 and/or a reduction of 25% in capacity.
Two sections were added to provide guidelines on Governmental Accounting Standards Board (GASB) requirements -
- A section for Capitalization of Leases - GASB Statement No. 87 which defines a lease as a contract granting control over another entity's nonfinancial asset for a set duration, requires lessees to recognize and amortize it as a capital asset over the shorter of the lease term or the asset's useful life.
- A section for Subscription Based Information Technology (IT) Arrangements - GASB Statement No. 96 which grants control over IT software and potentially tangible assets for a specified period, requiring it to be reported as a right-to-use intangible asset in the financial statements.

Section 4.4 - Fraud in the Workplace

This policy has been completely rewritten to include various definitions and better align with current practices.
Responsibilities have been expanded and more clearly defined.
A section on Fraudulent Actions was added, outlining fraud and providing examples.
A section on Preventing and Detecting Fraud was added.

Section 8.8 - Surplus Property

In the Public Auction section, wording has been added to permit the use of an electronic auction platform.

ENVIRONMENTAL (CEQA) REVIEW:

This proposed action is not subject to review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)).

FISCAL IMPACT:

There is no fiscal impact with this item.

LEVINE ACT DETERMINATION:

This item is NOT subject to the Levine Act.

Attachments
Section 4.1 - Capital Asset Policy - Redline
Section 4.1 - Capital Asset Policy - Final
Section 4.4 - Fraud in the Workplace - Redline
Section 4.4 - Fraud in the Workplace - Final
Section 8.8 - Surplus Property - Redline
Section 8.8 - Surplus Property - Final