Modesto Municipal Code Art. 4 Policy for Expense Reimbursement of the City Council and Council-Appointed…

* Prior history: Former Art. 4, Reimbursement of Official Expenses, was added by Ord. 224-C.S. and amended in its entirety by Ord. 3406-C.S.

(a) Assembly Bill 1234 imposes new restrictions on compensation and the reimbursement of expenses for members of local legislative bodies.

(b) Government Code Section 54950 et seq., also known as the Ralph M. Brown Act, defines "members of a legislative body" to include the City Council and members of any Commissions or advisory bodies created by the Council.

(c) The City has twenty (20) standing Boards, Commissions, and advisory bodies including the City Council, Airport Advisory Committee, Board of Building Appeals, Board of Zoning Adjustment, Charter Review Committee, Citizens Advisory Committee on Recycling, Citizens Housing and Community Development Committee, Citizens Redevelopment Advisory Committee, Community Qualities Forum, Culture Commission, Disabled Access Appeals Board, Downtown Improvement District Advisory Board, Equal Opportunity/Disability Committee, Golf Courses Advisory Committee, Housing Rehabilitation Loan Committee, Human Relations Commission, Landmark Preservation Commission, Local Cable Programming Committee, Planning Commission, and Tuolumne River Regional Park Citizens Advisory Committee.

(d) Assembly Bill 1234 requires cities, towns, and other public agencies to adopt a written policy, in a public meeting, that lists the types of occurrences that qualify a member of a legislative body to receive reimbursements for expenses relating to travel, meals, lodging, and other expenses.

(e) Members of the City's legislative bodies are currently reimbursed according to the City's expense policy for members of the City Council as adopted from time to time by resolution.

(f) Assembly Bill 1234 requires the adoption of a more restrictive reimbursement policy with respect to members of the City's legislative bodies.

(g) Assembly Bill 1234 takes effect on January 1, 2006.

All officers and employees of the City shall be entitled to reimbursement for expenses incurred for transportation, meals, lodging and incidentals necessarily incurred in the performance of their official duties in addition to such compensation as is otherwise provided. In case of any doubt as to the necessity for the incurring of any expense, the City Manager shall determine whether such necessity existed and may allow, reject or modify any claim or item or items thereof.

(Ord. 3406-C.S., effective 5-4-06)

(a) The City takes its stewardship over the use of its limited public resources seriously.

(b) Public resources should only be used when there is a substantial benefit to the City.

(c) Such benefits include:

(1) The opportunity to discuss the community's concerns with state and federal officials;

(2) Participating in regional, state and national organizations whose activities affect the City; (3) Attending educational seminars designed to improve officials' skill and information levels; and

(4) Promoting public service and morale by recognizing such service.

(d) Legislative and other regional, state and federal agency business is frequently conducted over meals; sharing a meal with regional, state and federal officials is frequently the best opportunity for a more extensive, focused and uninterrupted communication about the City's policy concerns; and each meal expenditure must comply with the limits and reporting requirements of local, state and federal law.

(e) In accordance with the requirements of Government Code Sections 53232.2 and 53233.3 (Assembly Bill 1234), this policy provides guidance to elected and appointed officials on the use and expenditure of City resources, as well as the standards against which those expenditures will be measured.

(f) This policy supplements the definition of actual and necessary expenses for purposes of state laws relating to permissible uses of public resources.

(g) This policy also supplements the definition of necessary and reasonable expenses for purposes of federal and state income tax laws.

(h) This policy also applies to any charges made to a City credit card or cash advance.

(Ord. 3406-C.S., effective 5-4-06)

(a) City funds, equipment, supplies including letterhead, titles, and staff time must only be used for authorized City business. Expenses incurred in connection with the following types of activities generally constitute authorized expenses, as long as the other requirements of this policy are met:

(1) Communicating with representatives of regional, state and national government on City-adopted policy positions;

(2) Attending educational seminars designed to improve officials' skill and information levels;

(3) Participating in regional, state and national organizations whose activities affect the City's interests;

(4) Recognizing service to the City (for example, thanking a longtime employee with a retirement gift or celebration of nominal value and cost);

(5) Attending City events; and

(6) Implementing a City-approved strategy for attracting or retaining businesses to the City, which will typically involve at least one (1) staff member.

All other expenditures require prior approval by the City governing body. In addition, expenses for international travel requires prior governing body approval.

(b) 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 or events;

(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), sporting events (including gym, massage and/or golf-related expenses), or other cultural events;

(5) Nonmileage personal automobile expenses, including repairs, traffic citations, insurance or gasoline; and

(6) Personal losses incurred while on City business.

Any questions regarding the propriety of a particular type of expense should be resolved by the City Manager before the expense is incurred.

(Ord. 3406-C.S., effective 5-4-06)

(a) In accordance with Health and Safety Code Section 33114, each of the City's Redevelopment Agency Board shall receive compensation ("meeting stipend") in the amount of thirty dollars ($30.00) per member for each meeting of the agency attended. No member shall receive compensation for attending more than four (4) meetings of the agency during any calendar month. Such compensation is in addition to any reimbursement for actual and necessary expenses incurred in the discharge of their duties, including meals, lodging, travel and expenses consistent with this article.

(b) To be entitled to a meeting stipend under this policy, the event in question must constitute one of the following:

(1) A meeting of the Agency within the meaning of Government Code Section 54952.2(a);

(2) A meeting of a district committee within the meaning of Government Code Section 54952(b);

(3) An advisory body meeting within the meaning of Government Code Section 54952(b);

(4) A conference or organized educational activity conducted in compliance with Government Code Section 54952.2(c), including ethics training required by Government Code Section 53234 and following;

(5) A meeting of any multi-jurisdictional governmental body on which the district director serves as the district's designated representative;

(6) Any meeting attended or service provided on a given day at the formal request of the Agency and for which the Agency approves payment of a meeting stipend.

(c) The number of days for which an Agency board member receives a meeting stipend will not exceed the aggregate limits established by state law.

(Ord. 3406-C.S., effective 5-4-06)

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.

No charges will be reimbursed without a receipt.

(a) Transportation. The most economical mode and class of transportation reasonably consistent with scheduling needs and cargo space requirements must be used, using the most direct and time-efficient route. Government and group rates must be used when available.

(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) and the State of California are presumed to be the most economical and reasonable for purposes of reimbursement under this policy.

(2) Automobile. Automobile mileage is reimbursed at the Internal Revenue Service rate in effect at the time of travel (http://www.irs.gov/publications/p463/ch04.html#d0e3119). The reimbursement rate at the time of the adoption of the ordinance codified in this article is forty-four and five-tenths (44.5) cents per mile. The reimbursement rate is designed to compensate the driver for gasoline, insurance, maintenance, and other expenses associated with operating the vehicle. This amount does not include bridge and road tolls, which are also reimbursable.

The City does not provide any insurance for private automobiles used on City business. The owner of an automobile is responsible for the personal liability and property damage insurance when the vehicle is used on City business. Officials using their own vehicle to conduct City business are encouraged to discuss the liability issues with their insurance carrier.

(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. When the rental of an automobile is authorized, insurance covering physical damage to the vehicle shall not be purchased.

(4) Taxis/Shuttles. Taxis or shuttles fares may be reimbursed, including a fifteen (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.

(b) 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 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 than government rates are presumed to be reasonable and hence reimbursable for purposes of this policy.

If lodging rates exceed the government rate for the area, actual lodging costs may be reimbursed conditioned upon performance of a good faith effort evidenced by documentation (e.g., internet search or phone calls) that demonstrate an attempt to find median-priced lodging.

(c) Meals. Meal expenses and associated gratuities will be reimbursed up to the regular federal IRS approved maximum meals and incidental expenses (M&IE) per diem rate established for the area of travel and in effect at the time said expenses are incurred with seventy-five (75) percent of the M&IE paid for the first and last days of travel.

Reimbursement rate information by location may be found on the U.S. General Services Administration website at http://www.gsa.gov and clicking on the per diem link. If a location is not published, the M&IE reimbursement shall not exceed the standard continental United States (CONUS) rate approved by the IRS.

The City will not pay for alcohol/personal bar expenses or for meal expenses for third parties.

The City shall pay for dinners provided to City Council members prior to City Council meetings.

(d) Telephone/Fax/Cellular. Officials will be reimbursed for actual telephone and fax expenses incurred on City business. Telephone bills should identify which call minutes were made on City business. For cellular calls when the official has a particular number of minutes included in the official's plan, the official can identify the percentage of calls made on public business.

(e) Internet. Officials will be reimbursed up to forty-five dollars ($45.00) per calendar month, with appropriate documentation, for Internet service provider charges in order to enable e-mail and Internet communication from their home residence or via PDA for official City-related business. When an official is outside the City boundaries and outside of range for PDA and it is necessary for the official to access e-mail and Internet communication for official City-related business, the official will be reimbursed up to fifteen dollars ($15.00) per day, with appropriate documentation. Internet usage, which is eligible for City reimbursement, must comply with the City's policy on Internet usage.

(f) Airport Parking. Long-term parking must be used for travel exceeding twenty-four (24) hours.

(g) Other. Baggage handling fees of up to one dollar ($1.00) per bag and gratuities of up to fifteen (15) percent will be reimbursed. Expenses for which City officials receive reimbursement from another agency are not reimbursable.

(Ord. 3406-C.S., effective 5-4-06)

(a) From time to time, it may be necessary for an official to request a cash advance to cover anticipated expenses while traveling or doing business on the City's behalf. Such request for an advance should be submitted to the City Manager ten (10) days prior to the need for the advance with the following information:

(1) The purpose of the expenditure(s);

(2) The benefits of such expenditure to the residents of the City;

(3) The anticipated amount of the expenditure(s) (for example, hotel rates, meal costs, and transportation expenses); and

(4) The dates of the expenditure(s).

(b) Any unused advance must be returned to the City treasury within seven (7) days of the official's return, along with a City expense report and receipts documenting how the advance was used in compliance with this expense policy.

(c) In the event the City Manager is uncertain as to whether a request complies with this policy, such individual must seek resolution from the City's governing board.

(Ord. 3406-C.S., effective 5-4-06)

(a) The City may issue credit cards to individual office holders. The policies and procedures governing the use of City credit cards, which are covered under a separate City policy, shall be followed.

(b) City credit cards may not be used for personal expenses, even if the official subsequently reimburses the City.

(c) Receipts documenting expenses incurred on City credit cards and compliance with said policy must be submitted within five (5) business days.

(Ord. 3406-C.S., effective 5-4-06)

(a) All cash advance expenditures, credit card expenses 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 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 include loss of reimbursement privileges, restitution, civil and criminal penalties as well as additional income tax liability.

(b) Expense reports must document that the expense in question met the requirements of this policy. For example, if the meeting is with a legislator, the local agency official should explain what expenses were incurred, what issues were discussed and how those relate to the City's adopted legislative positions and priorities.

(c) Officials must submit their expense reports within thirty (30) days of an expense being incurred, accompanied by receipts documenting each expense. Restaurant receipts, in addition to any credit card receipts, are also part of the necessary documentation.

(d) Inability to provide such documentation in a timely fashion may result in the expense being borne by the official.

(Ord. 3406-C.S., effective 5-4-06)

All expenses are subject to verification that they comply with this policy.

(Ord. 3406-C.S., effective 5-4-06)

At the following City governing body meeting, each official shall briefly report orally or in writing on meetings attended at City expense. If multiple officials attended, a joint report may be made.

(Ord. 3406-C.S., effective 5-4-06)

City officials should keep in mind that some expenditures may be subject to reporting under the Political Reform Act and other laws. All agency expenditures are public records subject to disclosure under the Public Records Act.

(Ord. 3406-C.S., effective 5-4-06)

Use of public resources or falsifying expense reports in violation of this policy may result in any or all of the following: (a) loss of reimbursement privileges; (b) a demand for restitution to the City; (c) the City's reporting the expenses as income to the elected official to state and federal tax authorities; (d) civil penalties of up to one thousand dollars ($1,000.00) per day and three (3) times the value of the resources used; and (e) prosecution for misuse of public resources.

(Ord. 3406-C.S., effective 5-4-06)

If any part of this article or the application thereof to any person is held invalid, the remainder of the article and the application of such provisions to other persons shall not be affected thereby.

(Ord. 3406-C.S., effective 5-4-06)