Council Adopts Rules to Quickly Pay City Vendors

The City Council has adopted a set of rules to ensure that city vendors are paid in a timely manner.

Councilwoman Laura Chick--who pushed for the measure--said she had heard stories from vendors who waited months to receive payment for goods and services.

“I don’t see how the city of Los Angeles can tout that it is business-friendly unless it pays its vendors and its contractors in an expedient way,” Chick said. “We encourage businesses to apply for city contracts and then we turn around and push them to the brink of bankruptcy by not paying them in a timely manner. I’ve heard horror stories from such businesses.”

Under Chick’s plan--approved unanimously by the council Tuesday--the city will implement a series of safeguards, including setting up a special liaison to work with vendors. Officials also are asking the city controller to report back regularly to the mayor and council members on the progress of the reforms.