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CC - 2009-66 - Adopting an Expense and use of Public Resource PolicyRESOLUTION: 2009-66 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ADOPTING AN EXPENSE AND USE OF PUBLIC RESOURCES POLICY THE CITY COUNCIL OF THE CITY OF ROSEMEAD HEREBY FINDS, DETERMINES AND RESOLVES AS FOLLOWS: WHEREAS, the State of California has enacted AB1234 requiring local agencies to enact expense reimbursement policies consistent therewith; and WHEREAS, the City of Rosemead takes its stewardship over the use of its limited public resources seriously; and WHEREAS, public resources should only be used when there is a substantial benefit to the City; and WHEREAS, 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; Attending educational seminars designed to improve officials' skill and information levels; and 4. Promoting public service and morale by recognizing such service. WHEREAS, 1) legislative and other regional, state and federal agency business is frequently conducted over meals; 2) 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 3) each meal expenditure must comply with the limits and reporting requirements of local, state and federal law; and WHEREAS, this policy provides guidance to elected and appointed officials on the use and expenditure of City resources, as well as the standard against which those expenditures will be measured; and WHEREAS, this policy supplements the definition of actual and necessary expenses for purposes of state laws relating to permissible uses of public resources, and supplements the definition of necessary and reasonable expenses for purposes of federal and state income tax laws; and WHEREAS, this policy also applies to any charges made to a city credit card, cash advances or other lines of credit. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD HEREBY RESOLVES AS FOLLOWS: SECTION 1. Any previous resolution that may conflict with the policies adopted in the Policy is hereby repealed. This Resolution is not intended to impair or effect any existing contracts with employees of employee organizations and does not apply to employees covered by such agreements. SECTION 2. The attached Expense and Use of Public Resources Policy is hereby adopted, effective immediately upon the approval of this Resolution. PASSED, APPROVED AND ADOPTED this 8th day of December 2009. M garet Clark Mayor ATTEST: Gloria Molleda City Clerk APPROVE AS TO FORM: J ep M. Monte City Attorney CITY OF ROSEMEAD Administrative Policy Manual Policy Number: 50-02 Date Established: December 27, 2005 Date Revised: December 08, 2009 City Manager Approval: SUBJECT: TRAVEL & MEETING EXEPENSE POLICY PURPOSE: The purpose of this policy is to define the City's expectations of its employees (hereinafter, employees includes elected and appointed officials, employees, and volunteers) who are required to travel in connection with their work responsibilities and to clarify which expenses the City will fund and which expenses are considered the personal responsibility of the traveler. Business travel is defined as authorized attendance at conferences, meetings, and seminars or authorized travel for any other purpose in connection with official City responsibilities. Business travel includes day trips and trips requiring one or more overnight stays. (Approved by the City Council on December 8, 20092; ,-24)~ - Resolution 2009-662005-47) General Policy: This policy assumes a mutual trust between the City and its employees. The City expects to pay all reasonable costs incurred by employees when traveling on City business, and employees are expected to use good judgment in their expenditure of public funds. Each department head shall be responsible and accountable for establishing procedures within his or her department, which ensure compliance with this policy. This policy does not claim to have addressed all contingencies and conditions. The City will pay expenses not specifically addressed in this policy, provided that the department head determines that the expenses are reasonable and necessary. Provisions: A. AUTHORIZED EXPENSES 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. A conference or organized educational activity conducted in compliance with subdivision (c) of Section 54952.2, including, but not limited to, ethics training required by Article 2.4 (commencing with Section 53234). Travel & Meeting Expense Policy Page 2 of 6 4. Participating in regional, state and national organizations whose activities affect the City; 5. Recognizing service to the City (for example, thanking a longtime employee with a retirement gift or celebration of nominal value and cost); 6. Attending City events; 7. Implementing a City-approved strategy for attracting or retaining businesses to the City, which will typically involve at least one staff member; and All other expenditures require prior approval by the City Council. The following expenses also require prior Council's approval: 1. International and out-of-state travel except to an adjacent state; 2. Expenses which exceed the annual limits established for each office holder; and 3. Expenses exceeding two thousand five hundred dollars ($2,500.00) per trip. 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 City-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. Non-mileage 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 approving authority before the expense is incurred. Travel & Meeting Expense Policy Page 3 of 6 B. COST CONTROL 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: C. 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. 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 utilizing other forms of transportation. In making such determination, the cost of the rental vehicle, parking and gasoline shall be compared to the combined cost of such other forms of transportation. Automobile. Automobile mileage is reimbursable at Internal Revenue Service rates presently in effect (see www.irs.gov). For 2008, the rate is 50.5 cents per mile. These rates are 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 IRS rates shall not be paid for rental vehicles; only receipted fuel expenses will be reimbursed. No more than $250.00 will be reimbursed for local automobile travel by one person for any month. Airfare. Airfares that are equal to 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 (www.csac.counties.org default.asp?id=635) and the State of California are presumed to be the most economical and reasonable for purposes of reimbursement under this policy. Car Rental. Rental rates that are equal to 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. Taxis/Shuttles. Taxis or shuttles fares may be reimbursed, including a 15 percent gratuity per fare, when the cost of such fares is equal to or less than the cost of car rentals, gasoline and parking combined, or when such transportation is necessary for time-efficiency. D. LODGING Lodging expenses will be reimbursed or paid for when travel on official City business reasonably requires an overnight stay. If such lodging is in connection with a conference, lodging expenses should not exceed the group rate published by the conference sponsor for the meeting in question. If group rates are unavailable, reimbursement shall not exceed available government rates. If government rates are not available to City officials, reimbursement shall not exceed the Internal Revenue Service per diem limits. See www.irs.gov or www.policyworks.gov/perdiem Travel & Meeting Expense Policy Page 4 of 6 E. MEALS Meal and incidental expenses shall not exceed the following amounts: 2006 2007 2008 2009 Breakfast $12 $12.52 $12.93 $13.82 Lunch $18 $18.77 $19.39 $20.07 Dinner $35 $36.51 $37.71 $39.03 Such amounts shall be annually adjusted to reflect changes in the cost of living in accordance with statistics published by the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index, all urban consumers for the Los Angeles-Anaheim-Riverside Metropolitan Area. (The annual adjustment shall be made based on said area whether such travel is within that area or not.) The City will not pay for alcohol/personal bar expenses. F. ENROLLMENT FEES Enrollment fees charged by providers of conferences, organized educational activities and other National, State or Regional organizations whose activities affect the City will be reimbursed at the lowest rates available to the official (i.e., member rate if the City or Official is a member). G. TELEPHONE/FAX/INTERNET/CELLULAR Officials will be reimbursed for actual telephone and fax expenses incurred on City business. Telephone bills should identify which calls 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. 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. H. AIRPORT PARKING Long-term parking should be used for travel exceeding 24-hours. 1. OTHER Baggage handling fees of up to $1 per bag and gratuities of up to 15 percent will be reimbursed. Expenses for which City officials receive reimbursement from another agency are not reimbursable. Travel & Meeting Expense Policy Page 5 of 6 J. CASH ADVANCE POLICY 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 Chief Financial Officer seven (7) days prior to the need for the advance with the following information: The purpose of the expenditure(s); and The benefits of such expenditure to the residents of the City; and The anticipated amount of the expenditure(s) (for example, hotel rates, meal costs, and transportation expenses); and The dates of the expenditure(s). Any unused advance must be returned to the City treasury within ten business days of the official's return, along with an expense report and receipts documenting how the advance was used in compliance with this expense policy. In the event the Chief Financial Officer is uncertain as to whether a request complies with this policy, such individual must seek resolution from the City Council. K. CREDIT CARD USE POLICY The City does not issue credit cards to individual office holders but does have an agency credit card for selected City expenses. City office holders and staff as authorized by the Chief Administrative Officer may use the City's credit card for such purposes as airline tickets and hotel reservations by following the same procedures for cash advances. Receipts documenting expenses incurred on the City credit card and compliance with this policy must be submitted within five business days of use. City credit cards may not be used for personal expenses, even if the official subsequently reimburses the City. L. EXPENSE REPORT CONTENT AND SUBMISSION DEADLINE 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'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 include loss of reimbursement privileges, restitution, civil and criminal penalties as well as additional income tax liability. Travel & Meeting Expense Policy Page 6 of 6 Expense reports must document that the expense in question met the requirements of the policy. For example, if the meeting is with a legislator, the City official should explain whose meals were purchased, what issues were discussed and how those relate to the City's adopted legislative positions and priorities. Officials must submit their expense reports within 30 days of an expense being incurred, accompanied by receipts documenting each expense. Restaurant receipts, in addition to any credit card receipts, are part of the necessary documentation. Inability to provide such documentation in a timely fashion may result in the expense being borne by the official. M. AUDITS OF EXPENSE REPORTS All expenses are subject to verification that they comply with this policy. N. REPORTS TO GOVERNING BOARD A written report regarding meetings attended at City expense must be submitted to the City Clerk within 10 days. t the fGlIGWiR9 Git C 'I eetiR aGh effi Gi l shall briefly FePG t ^ieetiRgs atte^aed at City exile^°° If multiple officials attended, a joint report may be made. 0. COMPLIANCE WITH LAWS 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. P. 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. STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF ROSEMEAD ) I, Gloria Molleda, City Clerk of the City of Rosemead, do hereby certify that the foregoing Resolution No. 2009-66 being: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ADOPTING AN EXPENSE AND USE OF PUBLIC RESOURCES POLICY was duly and regularly approved and adopted by the Rosemead City Council on the 8th of December, 2009, by the following vote to wit: Yes: Armenta, Clark, Low, Ly, Taylor No: None Abstain: None Absent: None ~ :~CttlbLtG+ Iv`dYX-eft Gloria Molleda City Clerk ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CIT COUNCIL FROM: JEFF ALLRED, CITY MANAGERL DATE: DECEMBER 8, 2009 SUBJECT: RESOLUTION AMENDING THE REPORTING REQUIREMENTS OF THE TRAVEL POLICY SUMMARY The City Council previously adopted resolution 2005-47 on December 27, 2005 implementing an expense and use policy in regards to travel and meetings to ensure compliance with AB1234. Since the original adoption of the City's Resolution, it has been determined that verbal reports regarding meetings or conferences attended are not required under AB1234. As a result, staff has prepared a new resolution and amended policy which changes the City's reporting requirements for elected and appointed officials to filing a brief written report with the City Clerk. The City Attorney has reviewed AB1234 and concurs that this amendment will keep the City in compliance with the law. Staff Recommendation That the City Council adopt Resolution 2009-66 amending the City's Expense and Use of Public Resources Policy. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: Matthew E. Hawkesworth Assistant City Manager ITEM NO. E- APPROVED FOR CITY COUNCIL AGENDA: