Business

City Must Pay Contractors, Businesses, Non-Profits Promptly

By restoring the Prompt Payment Ordinance, local organizations working for Oaklanders will be compensated in a timely manner and can do more work for Oakland as a result.

Published

4 years ago

October 15, 2021

Christy Price

Sheng Thao

I have introduced legislation to restore the City of Oakland’s Prompt Payment Ordinance and it will be heard at 1:30 p.m. by the City Council on October 19 because local contractors and local businesses need to be compensated in a timely manner for work they do on behalf of the City.

It’s unacceptable that the city is using the COVID-19 pandemic to delay payment to these local non-profit organizations. By restoring the Prompt Payment Ordinance, local organizations working for Oaklanders will be compensated in a timely manner and can do more work for Oakland as a result.

In March 2020, at the beginning of the COVID-19 pandemic, then-Interim City Administrator, Steven Falk issued an Emergency Order suspending parts of the City’s codes to give the City the flexibility to navigate the uncertain times. Few would have guessed then that the world would still be navigating the COVID-19 Pandemic nearly 18 months later. One of the ordinances suspended by the Emergency Order was the Prompt Payment Ordinance.

Oakland’s Prompt Payment Ordinance requires the City to compensate local businesses and contractors executing City grants or contracts within 20 days of receiving an invoice. This allows local organizations providing services on behalf of the City of Oakland to be compensated in a timely manner and builds trust between these organizations and the city. Local contractors and businesses provide a diverse set of services to the City, covering areas ranging from trash removal and paving to public safety.

Almost 18 months since the beginning of the COVID-19 pandemic, Oakland’s Prompt Payment Ordinance is still suspended. Even as City staff have adjusted to working remotely and the City has adjusted to operating during the pandemic, there is no requirement that the City compensate its contractors or local businesses in a timely manner.

Oaklanders can comment at the meeting by joining the Zoom meeting via this link https://us02web.zoom.us/j/88527652491 or calling 1-669-900-6833 and using the Meeting ID 885 2765 2491 and raising their hand during the public comment period at the beginning of the Council meeting.

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