Chapter 12

Financial Provisions

ARTICLE A - Office Of Internal Audit

1-12A-1: Created

There is hereby created a financial administrative unit of the City to be known as Office of Internal Audit. The head of this unit shall be designated as the Director of Internal Audit (Director). The Director and staff shall be independent of the other departments of the City and shall only be directly accountable to the public and the City Council for work performed. (1952 Code § 1-09-01)

1-12A-2: Appointment And Removal

A. Appointment Of Director: The Director shall be appointed by a majority vote of the full City Council after input from the Mayor.

B. Removal Of Director: The Director may not be removed from office except for misconduct, inefficiency, incompetence, inability or failure to perform the duties of such office or negligence in the performance of such duties. In such cases that warrant removal from office, said removal shall be accomplished only by a resolution adopted in public hearing by a vote of no less than five (5) members of the full City Council; nothing contained herein shall prevent the Council from eliminating the Office of the Director by the normal ordinance process, which action shall not be considered a removal for cause, but simply a change in policy by the City.

C. Auditors; Appeal Of Removal: Staff auditors shall be hired by the Director. An auditor may only be removed from office for misconduct, inefficiency, incompetence, inability or failure to perform the duties of such office or negligence in the performance of such duties as determined by the Director. A decision by the Director to remove an auditor may be appealed to the City Council within three (3) business days. A vote of no less than five (5) members of the full City Council is required on appeal to remove an auditor. (Ord. 35-14, 9-16-2014)

1-12A-3: Duties And Responsibilities

A. Compliance: It shall be the duty and responsibility of the Director to review City financial transactions, policies and practices for compliance with the Idaho Code, this Code and applicable City policies.

B. Annual Work Plan: The Director shall formulate and present to the Council and Mayor an annual work plan of tasks and projects for review and adoption.

C. Job Description: The Director shall carry out the duties as defined by the job description.

D. Other Assigned Duties: The Director shall carry out any other duties as assigned by the City Council.

E. Findings, Reports: The Director shall communicate findings and reports to the appropriate departments for their input.

F. Fiduciary Responsibility: The Director and audit staff shall have a fiduciary responsibility to the citizens of the City and will, at all times, exercise their duties with complete impartiality, fairness and objectivity.

G. Deception Prohibited: It shall be unlawful for the Director or any audit staff member to deceive the public or the City Council, in any manner, or to obstruct or manipulate the audit process, or conspire with others to do the same.

H. Coercion: It shall be unlawful for the Director or any staff member to coerce, threaten, harass, intimidate, influence or obstruct in any manner another person in the discharge of their responsibilities. (1952 Code § 1-09-03)

1-12A-4: Independence And Accountability

A. Independence: The Director shall, at all times, be totally independent from any other department of the City. Any audits, investigations, findings, recommendations and requests made by the Office of Internal Audit shall reflect the views of the Director alone.

B. Influencing: No person shall attempt to unduly influence or undermine the independence of the Director or staff in the performance of the duties and responsibilities set forth in this article. (1952 Code § 1-09-04)

1-12A-5: Cooperation And Assistance

A. Employee Cooperation: All City employees shall be required as a condition of their employment to cooperate fully and truthfully with the Office of Internal Audit operating within the course and scope of this article, by providing the Director or staff any information, evidence, interviews or other material as requested.

B. Access: The Director and staff shall have complete access to any and all records maintained and retained by the City necessary to carry out the duties and functions of the position. This access includes all electronic data or information maintained by the City and allowed by law.

C. Intimidation: It shall be unlawful for any person to directly or indirectly force, or by any threats to person or property, or in any manner wilfully intimidate, influence, impede, deter, threaten, harass, obstruct or prevent another person from freely, fully and truthfully cooperating with the Office of the Director. (1952 Code § 1-9-05)

D. Privileges, Confidentiality: Nothing contained herein is intended to waive any privileges or confidentiality that may exist for the protection of the City. (1952 Code § 1-09-05; amd. 2019 Code)

1-12A-6: Reporting To Council And Public

A. Required: The Director shall report to the Council and Mayor all finding and reports upon the completion of all assignments.

B. Quarterly Summary To City Council: The Director shall provide a quarterly summary to the City Council of all activities conducted by the auditor or his office.

C. Report Of Activities: The Director shall report any or all activities conducted by the auditor or his office upon the request of the City Council at any time.

D. Quarterly Report To Public: The Director shall report quarterly to the public all activities, as allowed by law, conducted by the auditor or his office. (1952 Code § 1-09-06)

ARTICLE B - Purchasing

1-12B-1: General Provisions

The City takes seriously its authority to spend taxpayer funds to purchase public works construction, goods and services required for the orderly and efficient operation of the City.

A. Adoption Of Idaho Code Purchasing Laws: In order to promote uniformity and consistency in the City procurement of public works construction, services and goods, the City adheres to the purchasing by political subdivision laws in Idaho Code as established by the Idaho legislature.

B. Business Operations Manual: The procedures for the implementation of the purchasing laws shall be described in the Business Operations Manual of the City, as it now exists or as it may from time to time be amended in the future. (1952 Code § 1-11-01)

1-12B-2: Reporting Of Anticompetitive Practices

When for any reason, collusion or other anticompetitive practices (any act by 1 or more parties seeking or endeavoring to limit or restrict competitive bid policies) are suspected among any bidders, offerors or proposers, the procuring department shall transmit the relevant facts to the Purchasing Agent and the City Attorney. (1952 Code § 1-11-02)

1-12B-3: Remedies

A. Authority To Resolve Protested Solicitations And Awards:

1. Right To Protest: In the event a formal level contract is awarded to a bidder/proposer other than the lowest responsive bidder/highest ranking proposer, any participating bidder/proposer may protest to the City Council through the Purchasing Agent. The protest shall be submitted in writing, specifying the reason or reasons the proposed award is in error within seven (7) calendar days after transmittal of the notice of intent to award letter.

2. Authority To Resolve Protests: The Purchasing Agent, with concurrence of the department head, or a designee, shall have the authority, prior to the commencement of an action in court concerning the controversy, to settle and resolve a protest of an aggrieved bidder/proposer, offeror or contractor, actual or prospective, concerning the solicitation or award of a contract, unless the settlement entails the payment of City funds in excess of ten thousand dollars ($10,000.00) or more, in which case it must be approved by the Mayor and City Council.

3. Decision: Unless a protest is withdrawn, the City Council shall either affirm its prior award, modify the award, reject all bids/proposals, or direct staff to proceed as it directs.

4. Notice Of Decision: A copy of the decision under subsection A3 of this section shall be mailed by certified letter or otherwise furnished immediately to the protestant and any other party intervening.

5. Finality Of Decision: A decision under subsection A3 of this section shall be final and conclusive.

6. Stay Of Procurement During Protests: In the event of a timely protest under subsection A1 of this section, the City shall not proceed further with the solicitation or with the award of the contract until the City Council considers the contentions raised or the protest is withdrawn.

B. Authority To Debar Or Suspend:

1. Authority: After reasonable notice to the person involved and reasonable opportunity for that person to be heard, the Purchasing Agent, after consultation with the department head of the using agency and the City Attorney, shall have the authority to debar a person or firm for cause from consideration for award of contracts. The debarment shall not be for a period of more than three (3) years. The same officer, after consultation with the department head of the using agency, shall have the authority to suspend a person from consideration for award of contracts if there is probable cause for debarment. The suspension shall be for a period not exceeding three (3) months.

2. Causes For Debarment Or Suspension: The causes for debarment or suspension include the following:

a. Conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of such contract or subcontract.

b. Conviction under City, State or Federal Statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty which currently, seriously and directly affects responsibility as a City contractor.

c. Conviction under City, State or Federal antitrust statutes arising out of the submission of bids or proposals.

d. Violation of contract provisions, as set forth below, of a character which is regarded by the Purchasing Agent to be so serious as to justify debarment action:

(1) Failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract; or

(2) A recent record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more contracts; provided, that failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor shall not be considered to be a basis for debarment.

e. Any other cause the Purchasing Agent determines to be so serious and compelling as to affect responsibility as a City contractor, including debarment by another governmental entity.

3. Decision: The Purchasing Agent shall issue a written decision to debar or suspend. The decision shall:

a. State the reasons for the action taken; and

b. Inform the debarred or suspended person involved of its rights to administrative review of the City Council.

4. Finality Of Decision: A copy of the decision under subsection B3 of this section shall be final and conclusive. The debarred or suspended person may appeal to the City Council within fourteen (14) days of notification of the decision by filing a notice of appeal with the City Clerk.

C. Authority To Resolve Contract And Breach Of Contract Controversies:

1. Applicability: This subsection applies to controversies between the City and a contractor and which arise under, or by virtue of, a contract between them. This includes, without limitation, controversies based upon breach of contract, mistake, misrepresentation or other cause for contract modification or rescission.

2. Authority: The Purchasing Agent, with the concurrence of the department head or designee, is authorized, prior to commencement of an action in court concerning the controversy, to settle and resolve a controversy described in subsection C1 of this section, unless the settlement entails the payment of City funds of ten thousand dollars ($10,000.00) or more, in which case it must be approved by the Mayor and City Council.

3. Decision: If such a controversy is not resolved by mutual agreement, the Purchasing Agent shall promptly issue a decision in writing. The decision shall:

a. State the reasons for the action taken; and

b. Inform the contractor of its right to administrative review by the City Council.

4. Notice Of Decision: A copy of the decision under subsection C3 of this section shall be mailed or otherwise furnished immediately to the contractor.

5. Finality Of Decision: The decision under subsection C3 of this section shall be final and conclusive. The contractor may submit a written appeal to the City Council within seven (7) working days of notification of the decision by filing a notice of appeal with the City Clerk.

6. Failure To Render Timely Decision: If the Purchasing Agent does not issue the written decision required under subsection C3 of this section within one hundred twenty (120) calendar days after written request for a final decision, or within such longer period as may be agreed upon by the parties, then the contractor may proceed as if an adverse decision had been received.

D. Remedies Prior To An Award: If prior to award it is determined that a solicitation or proposed award of a contract is in violation of law, then the solicitation or proposed award shall be:

1. Canceled; or

2. Revised to comply with the law.

E. Remedies After An Award: If after an award it is determined that a solicitation or award of a contract is in violation of law, then:

1. If the person awarded the contract has not acted fraudulently nor in bad faith nor been party to the illegality:

a. The contract may be ratified and affirmed, provided it is determined by City Attorney and the Purchasing Agent that doing so is in the best interest of the City; or

b. The contract may be terminated and the person awarded the contract shall be compensated for the actual expenses reasonably incurred under the contract prior to termination.

2. If the person awarded the contract has acted fraudulently or in bad faith:

a. The contract may be declared null and void; or

b. The contract may be ratified and affirmed if it is determined by the Purchasing Agent such action is in the best interests of the City, without prejudice to the City rights to such damages as may be appropriate. (1952 Code § 1-11-03)

ARTICLE C - Claims; Warrants

1-12C-1: Filing Claims

Any party having claims or accounts against the City, except refund payments or accounts from funds or monies held in trust for performance guarantee purposes only, shall file the same with the Clerk at least three (3) business days before the regular meeting of the Council; said claims or accounts shall be in the form of a bill of particulars, stating the item in detail and for what and when the same accrued. When on account or claim, or any item thereof, has once been disallowed, in whole or part, by the Council, the same shall not be again presented to the Council, and in no case shall such account be presented to any Council other than the one that has passed on the same; and every claim or account when presented shall contain all items of accounts and demands which the party claims against the City, up to the time of filing the same. (1952 Code § 1-12-01)

1-12C-2: Payment Of Claims By Warrant

All claims and accounts allowed against the City shall be paid by a warrant upon the Treasurer, to be drawn by the Mayor and countersigned by the Clerk, or on a check signed by the Mayor and Treasurer. (1952 Code § 1-12-02)

ARTICLE D - City Treasury

1-12D-1: Daily Deposits

Every officer of the City receiving money in his official capacity for, or on behalf of, the City, shall pay each day over to the Treasurer, or designated depository, the amount received by him during the day, except where the public monies of a depositing unit at any one time are less than one thousand dollars ($1,000.00) and in no event less often than once per week; and every officer so depositing money, or any person depositing money, with the Treasurer to the credit of the City, shall be responsible for assuring that monies are allocated to the correct revenue account and that the documentation accompanying the deposit is accurate. (1952 Code § 1-14-01)

ARTICLE E - Surety Bonds

1-12E-1: Guarantee In Lieu Of Surety Bonds

Whenever any chapter, section or provision of this Code, and as hereafter amended, or any rule, regulations or ordinance printed and contained in a book in Code form now ratified, adopted and in force, and as hereafter amended, requires a surety bond as a condition: a) of acceptance of a plat; b) for the approval of a grant for a permit or license; or c) for the permission to do any thing, act or work, the Council may, in lieu of a surety bond, require another type of guarantee sufficient to secure the actual and faithful observance and performance of: a) all conditions and requirements therein imposed by said plat, permit, license or contract, or thing, act or work approved; b) all ordinances of the City; and c) the duties required by ordinances, rules or regulations now in force or as hereinafter enacted, ratified or adopted and otherwise do, perform and observe all provisions and conditions of any approval, permit, license or contract. (1952 Code § 1-19-01)

1-12E-2: Security Of Thing, Act Or Work Approved

The guarantee in lieu of a surety bond acceptable to secure the actual performance and observance of the plat, permit, license or contract, or thing, act or work approved by the Council may be the following: (1952 Code § 1-19-02)

A. A general undertaking in a form similar to that required by Idaho Code section 12-613, and acknowledged by and before an officer authorized by law to take acknowledgements in order for such undertaking to be recorded. (1952 Code § 1-19-02; amd. 2019 Code)

B. The assignment or pledge of savings passbooks, time certificates or certificates of deposit of a bank or savings and loan association authorized to do business in the State.

C. The pledge, assignment or other act of rendering custody to the City in and to securities, bills or notes of the United States of America, or the bonds of the State, Municipal corporations or local improvement districts. (1952 Code § 1-19-02)

ARTICLE F - Percent For Public Art

1-12F-1: Statement Of Purpose

In order to beautify public areas, enhance the quality of life for City citizens, attract tourism, promote City services and the purposes of participating departments through the use of public art, provide a mechanism to meaningfully involve citizens in the design of their environment, educate the public about City departments and public art, and encourage businesses to locate within the City, thus expanding the City economic base, it is the policy of the City to dedicate one percent (1%) of the total cost of all eligible capital improvement projects to fund art in public places in the City. Associated project management, maintenance and education costs will be funded through the regular City budget process, not to exceed four tenths of a percent (0.4%) of the total cost of all eligible capital improvement projects. (1952 Code § 1-25-01)

1-12F-2: Eligible Capital Improvement Projects Defined

A. Eligible Projects; Exclusions: Eligible capital improvement projects include all City projects or portions of projects, including construction, renovation or remodeling expenses that are not specifically excluded. Costs excluded as ineligible for the program are:

1. Engineering, architect and other design and planning costs for capital projects, permits paid to another entity, building demolition costs, relocation costs of tenants, environmental testing or "indirect" cost charges, such as interest during construction, advertising and legal fees;

2. Project costs for which art is not eligible by statute, law or regulation;

3. Major repair, renovation and maintenance projects that would not be capitalized under the City fixed asset policy definition;

4. Any projects or project cost components specifically excluded by the City Council.

B. Capital Improvement Projects By Other Entities: Eligible capital projects include capital improvement projects that are developed by other entities and leased back to the City.

C. Development Cooperatively With Other Entities: Capital projects that are developed and implemented cooperatively with other public or private entities are eligible projects. The City will encourage public art funding partnerships between the City and other public and private entities with which the City cooperatively develops capital projects. The City shall provide funding for public art equivalent to one percent (1%) of the City funding of the eligible project budget. The entity partners will be encouraged to provide one percent (1%) public arts funding for the portion of the eligible capital costs for which they are responsible. If the entity partner chooses not to fund the public art associated with their portion of the project funding, the City Council may choose to contribute the funding to achieve one percent (1%) of the total eligible project costs.

D. Ownership: All completed artworks commissioned or purchased through this program will be owned, insured and maintained by the City.

E. Other Sources: The "Percent for Public Art" Program does not preclude funding or the acquisition or commission of other public art for Municipal property through other sources or mechanisms, including contributions, donations or grants. (1952 Code § 1-25-02)

1-12F-3: Project Management, Planning, Maintenance And Education

A. Project Management:

1. The Department of Arts and History (the "department") shall designate a person or persons to be responsible, in consultation with the respective City departments, for the artist selection process, accessioning, deaccessioning, maintenance and conservation for all works of art in the Public Art Program under the direction of the department, the Mayor and the City Council. The staff person may be a full time City employee or a temporary contract employee.

2. Associated project management costs include, but are not limited to, the selection process, printing, postage, artist proposal fees, meetings, office supplies, overhead, transportation and personnel.

B. Planning:

1. The department shall prepare an annual report and plan of all upcoming and in-progress art projects in cooperation with City department heads and shall submit it to the City Council. The plan will be coordinated with the budget planning process. Capital project eligibility will be evaluated and resolved in the budgeting and planning process.

2. All General Fund percent for art allocations shall be pooled and the department shall prioritize project opportunities based on criteria approved by City Council and incorporated into the administrative guidelines. The City Council shall approve project opportunities prior to implementation.

3. All enterprise funded percent for art allocations will be pooled within the fund and in the department that generated them (Public Works or Airport) and project opportunities will be prioritized by the relevant department and the Department of Arts and History based on the priorities agreed upon between the two. The City Council will approve project opportunities prior to implementation.

4. The Percent for Public Art Program shall be consistent with the City Strategic Plan, Comprehensive Plan, goals and purposes, zoning and subdivision ordinances, and allowed land uses.

C. Maintenance: All works commissioned and purchased as part of the Percent for Public Art Program shall be maintained in perpetuity, unless deaccessioned from the collection. This includes regular care, such as, but not limited to, cleaning, resurfacing and replacement of parts, as well as care in response to vandalism. The City will insure all works. The department is responsible for the maintenance of the public art collection. Other City departments may assist in the maintenance for public art located in facilities under their direction, such as the Boise Airport and Parks and Recreation.

D. Education: Activities and collateral that support public awareness and understanding of the City public art collection include, but are not limited to, walking tours, printed materials, lectures, website development and website maintenance. (1952 Code § 1-25-03)

1-12F-4: General Requirements For Art

A. Location: All works of public art will be located in a public place with public visibility and impact.

B. Professional Artist: A professional artist will be selected through a public selection process to consult, conceptualize and/or design and fabricate an art component for the identified capital project.

C. Standards And Guidelines: The department shall adopt standards and guidelines for the development and selection of artists and projects. City departments and relevant boards will be involved in the selection process. Boards and department heads will approve selection panel recommendations of proposed artist or artwork before presentation to the City Council.

D. Existing Or Newly Commission Artwork: Works purchased through the Percent for Public Art Program may be existing artwork or newly commissioned artwork.

E. Types: Works of art may be an integral part of a structure, attached to a structure or detached from a structure within or outside of it.

F. Professional Facilities: If deemed appropriate by the department and the germane City department, Percent for Public Art Funds for a capital improvement project may be used to create professional facilities for the exhibition of public art and the associated costs of changing exhibitions, facilities maintenance, professional curatorial, technical and preparator staff. If this option were utilized, the selection of a professional artist through a public selection process as set forth in subsection B of this section would not be required. Instead, the department, in consultation with the germane City department, would recommend an appropriate selection or bidding process for the facility design/fabrication, the method or choice of professional arts management of the changing exhibitions, and artist selection process. The City Council shall approve this option through review of the annual report/plan. (1952 Code § 1-25-04)

1-12F-5: Source Of Funds

A. Public Art Component Budget: During budget development or during interim budget processes related to individual capital projects, the public art budget for each City capital improvement project shall be identified and transmitted to the City Council. Funds for the public art component will be appropriated from the fund within which the capital improvement project is budgeted.

B. Calculation: The public art component budget for each capital improvement project shall be calculated by multiplying one percent (1%) times the project's eligible costs. The budget for the public art component shall be calculated for the budgeted eligible capital improvement project costs at the time of project approval by the City Council. The City Council may modify the public art component budget if during planning or implementation of the project, the eligible capital project costs significantly vary from the budgeted costs at time of approval.

C. Consideration During Review, Approval Process: The public art component budget for each project shall be considered during the review and approval process for capital projects. The public art component calculated in this section shall be included in the approved City capital improvement project budget, unless the City Council chooses to modify the amount. Approval of the Capital Improvement Project budget or of the Capital Improvement Program by the City Council shall, by policy, include and entail approval of the public art component associated with the capital improvement project or Capital Improvement Program, unless specifically modified by the City Council. As capital projects may require more than one year to implement, all unexpended project funds will be eligible to be rebudgeted each year, until project completion.

D. Associated Project Management, Maintenance And Other Costs:

1. For each eligible capital improvement project, an additional amount to fund projected project management, maintenance and other associated implementation and operating costs ("associated costs") of the public art component, as defined in section 1-12F-3 of this article, shall be identified during the City budget development or interim budget processes. The total project management and other costs for each project shall not exceed four tenths of a percent (0.4%) of the total cost of the eligible capital improvement project.

2. The department shall prepare a budget request for submission for consideration by the City Council within the two (2) year budget process to appropriately address the maintenance needs of the City public art collection. Ongoing maintenance costs for public art, beyond that provided by the "associated costs" for new projects, shall be considered for funding within the two (2) year budget as a base municipal cost. The "associated costs" approved for public art projects during a budget year shall not exceed the public arts project's budget for that budget period which is approved by City Council within the City two (2) year operating and capital budget. The City Council may amend the associated project management, maintenance and other costs for public arts projects through the City interim budget process.

a. The "associated costs" shall be used for project management to plan and implement the project, for annually required maintenance of City owned art, and for general administration costs related to arts projects, including, but not limited to, costs related to the selection of art, siting, maintenance, deaccessioning and community education as specified in section 1-12F-3 of this article.

b. The "associated costs" for all proposed public art component project budgets will be identified and reviewed within the City budget development process and will compete for funding with other budget requests and priorities. (1952 Code § 1-25-05)