HomeMy Public PortalAboutResolution 06-44061
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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
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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)
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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)
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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)
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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)
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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.