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Council discusses corporate account, signatories and updating credit-card policy for city purchases
Summary
Eureka councilors reviewed a request from America First Credit Union to add a city signatory, weighed options for a corporate credit or debit account, and instructed staff to update the city's procurement and credit-card policies before returning the item to the regular agenda for formal action.
EUREKA — Council members discussed adding signatories at America First Credit Union, issuing a corporate purchasing card for employees, and updating procurement and credit-card policies to provide better controls and auditability.
Patricia told the council America First Credit Union required minutes to show that the council had authorized adding Tony Deaver (and others) as check signers. The council discussed whether elected council members should be signatories and whether a city employee should hold a purchasing card. "I really do not care to get involved with this right now. And so I'm suggesting that one or both of you be put on there so that you can sign checks for the city," a council member said when discussing who should be authorized signers.
The group weighed three options: a debit card tied directly to a bank checking account, a corporate credit card (Mastercard/Visa) that posts monthly, or a procurement/purchase card (p-card) that can restrict vendors and spending categories. Several speakers favored a credit or purchase-card solution over a debit card tied directly to the checking account because card programs can offer vendor controls, monthly reconciliation and potential reward programs. "You can set your own limit on there. You can restrict the vendors that they're able to purchase from... there's more control with a p-card," one council member said.
Council members noted the city's written policies are not consistent: the employee manual references credit cards under "employee code of conduct" and limits incidental card usage to $100 without prior council authorization; the procurement policy requires competitive bidding for purchases over $1,000. A council member who reviewed the manual said the $100 card limit would sharply reduce the utility of a card program and recommended updating policy text and thresholds before finalizing any bank accounts. "It has a hundred dollar limit, on that without prior authorization from the council," the reviewer said.
Brad advised the council to direct staff to prepare an updated procurement and credit-card policy and to place the revised policy and the America First account-signature request on the next regular meeting agenda so the council can act after appropriate public notice. "My recommendation, just so we're complying with open public meeting act, is that we just get direction from you to put this on the next agenda with an updated policy... you can direct us now on what you want that number to be," Brad said, naming possible thresholds between $2,500 and $5,000 as examples.
Council members also emphasized internal controls: require receipts and monthly reconciliation, limit who can sign on which accounts, and avoid granting broad signing authority for all accounts to public-works staff. Patricia was asked to obtain the bank's form agreement for review and to ensure Joe (public works) understands the council's intent: provide a named card for the employee but not blanket signing authority over all city accounts.
Ending: The council did not take a final vote at the work meeting. Members directed staff to prepare a revised procurement/credit-card policy for auditor review, obtain the bank form agreement, and place the signatory and policy items on the next regular meeting agenda for formal action.
