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HomeMy Public PortalAboutResolution 06-44061 1 RESOLUTION NO. 06 -4406 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY REVISING ADMINISTRATIVE POLICY NO. 3.00 REGARDING EXPENSE REIMBURSEMENT AND USE OF PUBLIC RESOURCES WHEREAS, recently; allot ted Assembly Bill :1234 imposes new restrictions on the reimbursement of expenses for mernbers of local Legislative bodies; and, WHEREAS, it is appropriate for elected and appointed officials of the city to incur expenses when there is a substantial benefit to theCity of Temple City which may include, but are not limited to: (1) the opportunity to discuss the'coromunity's concerns with state and federal officials; (2) participating in regional state and national _organizations whose activities affect the City of Temple City; (3) Attending educational seminars designed to improve officials' skill and information levels; and (4) Promoting public service and morale by recognizing such service; and, WHEREAS, it is the intent of the attached policy to provide guidance to elected and appointed officials on the use and expenditure of City of Temple City resources, as well as the standards against which those expenditures will be measured; and, WHEREAS, this policy would satisfy the requirements of Government Code sections 53232.2 and 53233.2 in the event such requirements could be constitutionally applied to charter cities; and, WHEREAS, this policy supplements the definition of actual and necessary expenses for purposes of applicable State laws relating to permissible uses of public resources and for purposes of federal and state income tax laws; and, WHEREAS, this policy also applies to any charges made to a City credit card, the use of cash advances or other line of credit for the expenses of any public official of the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES HEREBY RESOLVE: SECTION 1. The City Council hereby adopts Administrative Policy No. 3.00 regarding Expense Reimbursement and Use of Public Resources as outlined in Exhibit A attached hereto and made a part of this resolution. SECTION 2. The City Clerk shall certify to the passage and adoption of this resolution. PASSED, APPROVED AND ADOPTED on this 21St day of March, 2006. ATTEST: at_er MAYOR I, City Clerk of the City of Temple City, do hereby certify that the foregoing resolution, Resolution No. 06 -4406, was duly passed, approved and adopted at a regular meeting of the City Council of the City of Temple City held on the 21st day of March, 2006 by the following vote: AYES: Councilmember - Arrighi, Gillanders, Wong, Wilson, Capra NOES: Councilmember -None ABSENT: Councilmember -None ABSTAIN: Councilmember -None 1 1 1 1 1 1 POLICY NO: 3.00 SUBJECT: REIMBURSEMENT OF BUSINESS EXPENSES AND USE OF PUBLIC RESOURCES EFFECTIVE DATE: MARCH 21, 2006 I. POI ICY ORJFCTIVF• To establish standards for the documentation, approval and payment of cash advances and reimbursement of expenses incurred for meals, board, and travel by employees, elected officials and other persons who conduct City business. II AUTHORITY: Section 604 of the City Charter and Article II, Section 2207 of the Temple City Municipal Code and as approved by City Council. III ASSIGNED R SPONSIBI ITY: All department managers. IV APPI ICABII ITY: For the purposes of this policy, "public official" means any elected, appointed, or appointed volunteer working for the interests of the City of Temple City. This definition includes Councilmembers, Commissioners, employees, authorized volunteers, and others such as those who participate in oral boards and who assist the City in its business. V. POI ICY: A. The City will reimburse individuals for all reasonable, ordinary, and necessary expenses incurred while conducting City business subject to the following policies and procedures. B. All expenditures must be reasonable, ordinary and necessary for the specific benefit of the City of Temple City. Administrative Policy No. 3.00 Page 2 Revised March 2006 C. To the extent possible, such expenditures should be pre- approved rather than post- approved. VI. PROCEDURES. A. City Council Approval. Any conferences, conventions, or other meetings requiring overnight accommodations or air travel must be reflected in the current year Adopted Budget. B. Authorized Fxpense City funds, equipment, supplies (including letterhead), titles, and staff time must only be used for authorized business of the City of Temple City. Expenses incurred by public officials in connection with the following types of activities generally constitute authorized expenses, and may be reimbursed by the City as long as the other requirements of this policy are met: 1. Serving the needs of the residents, businesses and visitors of the City of Temple City; 2. Communicating with constituents in compliance with applicable laws; 3. Communicating with representatives of regional, state and national government on City policy positions; 4. Attending educational seminars designed to improve public officials' skill, knowledge, and information levels; 5. Participating in regional, state and national organizations whose activities benefit or affect the City's interests; 6. Recognizing service to the City (for example, thanking a longtime employee with a retirement gift or celebration or award of nominal value and cost); 7. Attending City, community, regional and other events; 8. Gathering facts and information regarding City projects, issues and priorities in other jurisdictions; (revised 3/21/06) 1 1 1 Administrative Policy No. 3.00 Page 3 Revised March 2006 9. Implementing a City- initiated strategy for attracting or retaining businesses to the City; and 10.Attending meetings such as those listed above for which a meeting stipend is expressly authorized under this policy. 11. Keeping and using a personal automobile to undertake the above - referenced activities and to observe the City to determine traffic patterns, the condition of streets and property and to generally remain aware of the state of the City. The reimbursement of an expense in excess of $50 for any other purpose shall require prior approval by the City Manager. Payments for international travel require prior City Council approval. Examples of personal expenses that the City will not reimburse include, but are not limited to: 1. The personal portion of any trip; 2. Political or charitable contributions; 3. Family expenses, including partner's expenses when accompanying official on agency - related business, as well as children- or pet - related expenses; 4. Entertainment expenses, including theater, movies (either in -room or at the theater), recreational events not related to City business (including gym or massage expenses), cultural events not related to City business; 5. Non - mileage personal automobile expenses, including repairs, traffic citations, insurance or gasoline; 6. Personal losses incurred while on City business; and 7. Personal alcohol or bar expenses. Any questions regarding the propriety of a particular type of expense should be resolved by the approving authority before the expense is incurred. C Cost Control (revised 3/21/06) Administrative Policy No. 3.00 Page 4 Revised March 2006 To conserve City resources and keep expenses within community standards for public officials, expenditures should adhere to the following guidelines. In the event that expenses are incurred which exceed these guidelines, the cost borne or reimbursed by the City will be limited to the costs that fall within the guidelines, unless such excess amounts have been approved in advance by the appropriate authority. D. Transportation The most economical mode and class of transportation reasonably consistent with scheduling needs, the public official's time constraints, and cargo space requirements must be used, using the most direct and time - efficient route. Charges for rental vehicles may be reimbursed under this provision if more than one City official is attending an out of town conference, and it is determined that sharing a rental vehicle is more economical than other forms of transportation. In making such determination, the cost of the rental vehicle, parking and gasoline will be compared to the combined cost of such other forms of transportation. Government and group rates must be used when available. The City Council recognizes and acknowledges that some public officials are part-time volunteers, and that personal, employment and other commitments may impact the economy of available travel arrangements. 1 Airfare Airfares that are equal or less than those available through the Enhanced Local Government Airfare Program offered through the League of California Cities (www.cacities.org /travel), the California State Association of Counties (http: / /www.csac. counties .org /default.asp ?id =635) and the State of California shall be, in most normal circumstances, presumed to be the most economical and reasonable for purposes of reimbursement under this policy. The City Council recognizes and acknowledges that such airfares are not always practicable or available in certain limited circumstances, and finds that higher airfares may be appropriate in individual cases. 2 Automobile Automobile mileage is reimbursed at Internal Revenue Service rates presently in effect (see www.irs.gov). For 2006, the rate is 44.5 cents per mile. The Internal Revenue Service rates will not be paid for rental vehicles; only receipted fuel expenses will be reimbursed. The mileage rates do not include bridge and road tolls, which are also reimbursable. Those employees who receive a car allowance are eligible for reimbursement only when the travel is outside the local area. (revised 3/21/06) 1 1 Administrative Policy No. 3.00 Page 5 Revised March 2006 3. Car Rental Rental rates that are equal or less than those available through the State of California's website ( http: / /www.catravelsmart.com /default.htm) shall be considered the most economical and reasonable for purposes of reimbursement under this policy. 4 Taxis /Shuttles Taxis or shuttles fares may be reimbursed, including a 15 percent gratuity per fare, when the cost of such fares is equal or less than the cost of car rentals, gasoline and parking combined, or when such transportation is necessary for time - efficiency. E. Lodging Lodging expenses will be reimbursed or paid for when travel on official City business reasonably requires an overnight stay. 1 Conferences /Meetings If such lodging is in connection with a conference, lodging expenses must not exceed the group rate published by the conference sponsor for the meeting in question if such rates are available at the time of booking. If the group rate is not available, see next section. 2 Other Lodging Travelers must request government lodging rates, when available. A listing of hotels offering government rates in different areas is available at http:// www. catravelsmart.com /lodguideframes.htm. Lodging rates that are equal or less to government rates are presumed to be reasonable and hence reimbursable for purposes of this policy. In the event that government rates are not available at a given time or in a given area, lodging rates that do not exceed the median retail price for lodging for that area listed on websites like www_hotels.com, www.expedia.com or an equivalent service shall be considered reasonable and hence reimbursable if, given the circumstances of the travel, such comparable rates can be found. In unique circumstances, the City Manager may approve the reimbursement of reasonable lodging costs that exceed the two standards above, if necessary under the particular circumstances. F. Meals Public officials shall, when available, take meals that are provided as part of a seminar or conference registration fee. Cost for meals not covered as part of seminars or conferences shall be advanced /reimbursed at the annual rates set by the Internal Revenue Service for Domestic Per Diem. Such amounts will be annually adjusted without further action by the City Council. The City will not (revised 3/21106) Administrative Policy No. 3.00 Page 6 Revised March 2006 reimburse personal alcohol or bar expenses. City funds may not be expended to reimburse City Councilmembers for expenses incurred to purchase meals for third parties, such as constituents, consultants, legislators and private business owners, hereafter known as "third parties." The City Manager and his designees may be reimbursed for the cost of providing meals to third parties involving activities benefiting the City, such as oral boards or meetings held to discuss legislation, or business opportunism in the City; or other matters of benefit to the City, whether or not the activity is attended by Councilmembers. Councilmembers are prohibited from using City issued credit cards to pay for expenses incurred to purchase meals for third parties. In no case shall expenses be reimbursed to a non - employee other than a consultant or other person working for the City under contract; or to or for a family member of a City employee unless the family member is also an employee. G. Telephone /Fax/Cellular Officials will be reimbursed for all actual telephone and fax expenses incurred on City business. Telephone bills should identify which calls were made on City business. H. Internet On out -of -town trips, public officials will be reimbursed for Internet access connection and /or usage fees away from home, not to exceed $15.00 per day, if Internet access is necessary for City - related business. I. Airport and Other Parking Charge The City will reimburse parking costs based on actual costs or the equivalent of Tong -term parking rates used for travel exceeding 24- hours. J Other Baggage handling fees and reasonable gratuities will be reimbursed. Expenses for which City officials receive reimbursement from another agency are not reimbursable. K. Advances Advances will be made for mileage, hotel and meals (subsistence) associated with approved travel. The City will pay directly for airfare and conference registration in (revised 3/21/06) 1 1 1 Administrative Policy No. 3.00 Page 7 Revised March 2006 advance for approved travel. 1. Requests for transportation or conference registration expenses should be given to the Financial Services Department in sufficient time to be processed on a regularly scheduled warrant register. 2. Conference registration and airfare will be paid directly to vendors by the City. Any city official or employee attending any convention, conference or meeting may secure an advance for mileage, meals and hotel. 3. The advance payment will be processed and available several days prior to departure. L Business Meetings: 1. Partial -Day Meetings - Meal reimbursement for partial -day meetings, workshops, etc., shall be based on the actual charge established for each meal by the particular meeting or conference. If no set amount is established, reimbursement shall be made for reasonable expenses, and itemized receipts are required. 2. Incidental expenses incurred during partial -day meetings will be reimbursed at actual costs, and applicable receipts shall be attached. Examples of incidental expenses are: registration fees, tips, parking fees, business phone calls, and other justifiable incidental expenses. M Memberships: Dues and related expenses for individual memberships in organizations are reimbursable only when such memberships provide a specific benefit to the City and are in the current year Adopted Budget. N Other Any other expenses must be of a benefit to the City. The expenses must be itemized for each specific event, function, or meeting. Reimbursement of expenses for spouses is not authorized. Current procedures also require that not more than two (2) members of the Council or any two (2) members of a Commission may fly on the same aircraft at any one time. 0 Filing Fxpense Reports: (revised 3/21/06) Administrative Policy No. 3.00 Page 8 Revised March 2006 All cash advance expenditures, credit card expenditures and expense reimbursement requests must be submitted on an expense report form provided by the City. This form shall include the following advisory: All expenses reported on this form must comply with the City's policies relating to expenses and use of public resources. The information submitted on this form is a public record. Penalties for misusing public resources and violating the City's policies may include loss of reimbursement privileges, restitution, civil and criminal penalties as well as additional income tax liability. Expense reports must document that the expense in question met the requirements of this policy. 1. A completed Travel Expense Report including all advances must be submitted to the Financial Services Director within ten days of returning from a conference or workshop. A revised report form is attached (Attachment A). 2. All supporting receipts must be documented to identify the amount, place, purpose, and participants and must be attached to the completed expense report. Absent of a receipt, a complete explanation must be attached to the expense report of such undocumented expenses. 3. A completed reconciliation of any prepaid and advanced funds must be provided, together with a repayment to the City of any unused advance funds for lodging. Before a cash advance is allowed, any previous cash advance must be accounted for, either with cash or receipts totaling said cash advance. 4. It is necessary for all City Councilmembers, City employees and officers, and City Commission members to submit a Travel Expense Report in order to avoid reporting the advance funds as income for tax purposes. 5. All expenses are subject to verification that they comply with this policy. The City Council and /or the Financial Services Manager or his /her designee may request additional documentation or explanation of individual expenditures for which reimbursement is requested by a public official. P Reports To the Public,, (revised 3/21/06) 1 1 1 Administrative Policy No. 3.00 Page 9 Revised March 2006 At a subsequent City Council meeting, each public official shall briefly report, orally or in writing, on meetings attended at City expense. If multiple officials attended an event, a joint report or individual report on behalf of all attendees may be made. Q Compliance With Laws City officials should keep in mind that some expenditures could be subject to reporting under the Political Reform Act and other laws. Records of all City expenditures and documentation regarding expense reimbursements are public records subject to disclosure under the Public Records Act. R Violation Of This Policy Use of public resources or falsifying expense reports in violation of this policy may result in any or all of the following: 1) loss of reimbursement privileges, 2) a demand for restitution to the City, 3) the agency's reporting the expenses as income to the elected official to state and federal tax authorities, 4) civil penalties of up to $1,000 per day and three times the value of the resources used, and 5) prosecution for misuse of public resources. S. ►I•• - 11 •I .II 1 - - • '• - -11 U Any of the above policies may be clarified, modified, or waived if approved by the City Council. T Prudent Person Riffle: In utilizing finances of other than one's own, the "Reasonable and Prudent Person" approach should apply. Expending public funds should be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and reasonable knowledge exercise in the management of their own finances. Charles Martin, ity anager (revised 3/21/06) T�0 MEMORANDUM Name: Purpose: TRAVEL EXPENSE REPORT Position: Location: Date(s): Account: SECTION A — RECORDED EXPENSES BY ATTENDEE trati enses TOTAL CONFERENCE EXPENSE SECTION B - ADVANCES MADE BY CITY Registration Transportation Hotel Per Diem Other TOTAL ADVANCES $ $ $ SECTION C - DIFFERENCE Amount due to Attendee (Section A — Section B) Amount due to City (Section B — Section A) $ $ As a reminder: Receipts must be attached for registration, transportation, and hotel. Mileage reimbursement requires number of miles driven. All expenses reported on this form must comply with the City's policies relating to expenses and use of public resources. The information submitted on this form is a public record. Penalties for misusing public resources and violating the City's policies may include loss of reimbursement privileges, restitution, civil and criminal penalties as well as additional income tax liability.