(a) Notwithstanding and not exclusive or preclusive of any other administrative or legal action taken by the City, a Contractor may be assessed monetary penalties for submitting false claims. The Department Head responsible for the Public Work or Improvement may withhold such penalties from amounts due or retained under the Contract. Notwithstanding and not exclusive or preclusive of any administrative or other legal action, the City Attorney may investigate and prosecute in a civil action any submission of a false claim.
(b) The submission of a false claim occurs when a Contractor, subcontractor, supplier, consultant or subconsultant commits any of the following acts enumerated below:
(1) Knowingly presents or causes to be presented to an officer or employee of the City a false claim or request for payment or approval;
(2) Knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the City;
(3) Conspires to defraud the City by getting a false claim allowed or paid by the City;
(4) Knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the City;
(5) Is a beneficiary of an inadvertent submission of a false claim to the City, subsequently discovers the falsity of the claim, and fails to disclose the false claim to the City within a reasonable time after discovery of the false claim.
(c) In such event, the Contractor, subcontractor, supplier consultant or subconsultant shall be liable to the City for: (1) three times the amount of damages which the City sustains because of the act(s) of that Contractor, subcontractor, supplier, consultant or subconsultant; and (2) the costs, including attorney's fees of a civil action brought to recover any of those penalties or damages. Such Contractor, subcontractor, supplier, consultant or subconsultant may also be liable to the City for a civil penalty of up to $10,000 for each false claim. Liability under this Section 6.83 shall be joint and several for any act committed by two or more persons.
(d) For purposes of this Section, "claim" includes any request or demand for money, property or services made to any employee, officer, or agent of the City, or to any Contractor, subcontractor, grantee or other recipient, whether under contract or not, if any portion of the money, property, or services requested or demanded issued from, or was provided by, the City.
(e) For purposes of this Section, "knowingly" means that a Contractor, subcontractor, supplier, consultant or subconsultant with respect to information does any of the following: (1) has actual knowledge of the information; (2) acts in deliberate ignorance of the truth or falsity of the information; or (3) acts in reckless disregard of the truth or falsity of the information. Proof of specific intent is not required and reliance on the claim by the City is also not required.
(Added by Ord. 286-99, File No. 991645, App. 11/5/99; amended by Ord. , File No. 150175, App. 7/2/2015, Eff. 8/1/2015)
