Bringing Prompt Payment to the City of Los Angeles
Posted by Councilmember Englander on August 04, 2017 at 1:00 PM
This week, I introduced a motion instructing City departments to study the feasibility of a Prompt Payment policy based on similar policies adopted by other entities in our region. Adoption of Prompt Payment will ensure that those who do business with the City of Los Angeles do not have to wait months on end to receive payment for services rendered.
Timely payments are critical to small businesses because of their cash flow requirements. With up to 37 separate City departments, businesses that contract or do business with the City often experience payment delays that are created by having to navigate through varying invoice and payment processes, or not knowing who to communicate with in the appropriate department.
With prompt payment policies already adopted by Los Angeles County and L.A. Metro, the City of Los Angeles has fallen behind our regional counterparts. Adoption of this motion will mark an important step in modernizing and improving the relationship the City has with its local businesses.