Council Committee to Consider Penalties Owed to Nonprofits and Small Businesses

Chase Bank near Oakland City Hall. Photo by Tulio Ospina.

The Oakland City Council’s Finance and Management Committee will hold a discussion of the city’s handling of late payment penalties that are paid to nonprofits and vendors that provide services to the city.

The meeting will be held in Oakland City Hall, Tuesday, May 8, at 9 a.m.

Nonprofits and small vendors that depend on city contracts to their pay employees and their bills are especially adversely affected when the city fails to pay invoices on time, according to representatives of nonprofits who have spoken at previous council committee meeting.

Compounding the negative impact, the penalties the city pays for late payment of invoices are tiny, inadequate to cover expenses and fines incurred by the vendors that are left waiting for money they are owed by the City of Oakland.

In some cases, small vendors and nonprofits have been forced out of business due to the city’s late payments of contracts.

The committee meeting will address the City of Oakland’s extremely low, late payment penalties, which fail to deter the city’s poor treatment of small businesses and nonprofits.


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