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27. Expense reimbursement.y CUPERTINO ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 950143255 (408) 777-3220 • FAX (408) 777-3109 SUMMARY Agenda Item No. SUBJECT AND ISSUE Meeting Date: December 18, 2Q07 Adopt a resolution establishing an Expense Reimbursement and Advance Payment Administrative Procedure for City Council members, commissioners, and committee members and adopt a resolution amending the Unrepresented Employees Compensation Program Training and Conferences Policy. BACKGROUND Assembly Bill 1234 now requires that cities, which reimburse elected officials and appointed members of their commissions and committees for actual and necessary expenses incurred in the performance of official duties, must adopt a written policy defining the activities and expenses that are reimbursable. It also states that unless reimbursement rates are established for such expenses, then those expenses would be reimbursed at the Internal Revenue Service per diem rates. Presently, there are travel and expense reimbursement policies for City employees but none specifically for elected officials and appointed commissioners and committee members. When public officials had submitted expenses for reimbursement, staff had applied the employee policy to process the payment. However, governing bodies and associated advisory boards must now follow a somewhat more restrictive and detailed policy than current City guidelines. The policy recommended by staff combines language from current City policy and uses examples from the Institute for Local Government and other cities. Council members and commissioners could receive travel and expense reimbursements or advances for the following activities: • Communicating with representatives of regional, state and national government on City adopted policy positions; • Attending conferences, seminars, and training designed to improve skill and information levels; • Participating in regional, state and national organizations whose activities affect the City; • Attending City events; and 27-1 Expense Reimbursement Policies December l 8, 2007 Page 2 of 3 • Attending functions of other local civic or community organizations where there is a clear nexus between the event and the member's attendance as an official representative of the City. Purely social events, service club dues and meals, and political or charitable contributions or events would be excluded. For purposes of this section, reimbursable fundraisers and events include, but are not limited to, Cupertino Union School District, Fremont Union High School District, Foothill-De Anza Community College District and Cupertino Chamber of Commerce activities. Travel costs include transportation, lodging, meals and other incidental expenses. Depending on the situation, reimbursement or advance payment rates on such costs would be tied to government or group rates, median hotel prices per area,. or mileage and per diem rates as defined by the IRS. At the next regular City Council or commission meeting, Council members and commissioners would need to briefly report on publicly noticed meetings attended at City expense. Other local general law cities such as Los Altos Hills and Daly City have adopted similar policies to be in compliance with the general law effect of AB 1234. • '+S Staff also recommends applying these new guidelines into the unrepresented employee training and conferences policy. FISCAL IMPACT No fiscal impact. Existing budget limits on travel, conferences and meetings still apply. RECOMMENDATION 1) Adopt a resolution establishing an expense reimbursement and advance payment procedure for City Council members, commissioners, and committee members. 2} Adopt a resolution amending the training and conferences policy for unrepresented employees. Submitted by: ~~ David Woo Finance Director Reviewed by: ~~ Carol A. Atwood Director of Administrative Services Approved for submission: i David W. Knapp City Manager z~-z .y Expense Reimbursement Policies December 18, 2007 Page 3 of 3 Attachments: 1} Resolution establishing an expense reimbursement and advance payment administrative procedure 2) Expense Reimbursement and Advance Payment Administrative Procedure Number I- I2 {Attachment "A"} 3) Resolution amending the unrepresented employees compensation program 4) Unrepresented Employees Compensation Program Policy No. 3, Training and Conferences (Attachment "A") 5) Revised Expense Reimbursement Form (Attachment "B") 27-3' RESOLUTION NO.07- A RESOLUTION OF THE CI'T'Y COUNCIL OF THE CITY OF CUPERTINO ESTABLISHING AN EXPENSE REIlVIBURSEMENT AND ADVANCE PAYMENT ADMINISTRATIVE PROCEDURE FOR CITY COUNCILMEMBERS, COMMISSIONERS, AND COMMITTEE MEMBERS WHEREAS, the City of Cupertino takes its stewardship over the use of its limited public resources seriously; and WHEREAS, public resourrces should only be used when there is a substantial benef t to the City; and WHEREAS, such benefits include: 1. Communicating with representatives of regional, state, and national government on City adopted policy positions; 2. Attending conferences, seminars, and training designed to improve skill and information levels; 3. Participating in regional, state and national organizations whose activities affect the City's interests; 4. Attending City events; and 5. Attending functions of other local civic or community organizations where there is a clear nexus between the event and the member's attendance as an official representative of the City. Purely social events, service club dues and meals, and political or charitable contributions or events would be excluded. For purposes of this section, reimbursable fundraisers and events include, but are not limited to, Cupertino Union School District, Fremont Union High School District, Foothill-De Anza Community College District and Cupertino Chamber of Commerce activities; and WHEREAS, this procedure provides guidance to such elected and appointed officials on the use and expenditure of City resources, as well as the standards against which those expenditures will be measured; and WHEREAS, this procedure satisfies the requirements of California Government Code sections 53232.2 and 53233.3; and WHEREAS, this procedure supplements the definition of actual and necessary expenses for purposes of state laws relating to permissible uses of public resources. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby establishes an expense reimbursement and advance payment 27-4 administrative procedure for City Council members, commissioners, and committee members by incorporating in this resolution Attachment "A", the City of Cupertino Administrative Procedure Number I-12. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this day of 2007, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk APPROVED: Mayor, City of Cupertino 27-5 Number I-12 . Expense Reimbursement and Advance Payment I. PURPOSE City of Cupertino Administrative Procedures Attachment "A" Effective Date: 12/18/07 New Describe the policy for reimbursement or direct advance of actual and necessary expenses incurred by elected or appointed officials. II. POLICY It is City of Cupertino policy that members of the City Council, Redevelopment Agency Board, and the Council's commissions and committees, shall be reimbursed or receive a direct advance according to the schedules, terms and conditions as set forth herein for the expenses authorized below. This policy is established in accordance with California Government Code Sections 53232.2 and 53232.3. III. AUTHORIZED EXPENSES The City Council and their commission and committee members can receive reimbursements or advances toward actual and necessary 'ex)enses incurred by participating in the following activities or events: 1. Communicating with representatives of regional, state and national government. on City adopted policy positions; 2. Attending seminars, conferences, and training to improve skill and information levels; 3. Participating in regional, state and national organizations whose activities affect the City's interests (such as the League of California Cities); 4. Attending City events; 5. Attending functions of other local civic or community organizations where there is a clear nexus between the event and the member's attendance as an official representative of the City. Purely social events, service club dues and meals, and political or charitable contributions or events would be excluded. For purposes of this section, reimbursable fundraisers and events include, but are not limited to, Cupertino Union School District, Fremont Union High School District, Foothill-De Anza Community College District and Cupertino Chamber of Commerce activities. The City will not reimburse or advance payment toward expenses including, but not limited to: 1. The personal portion of any trip; 2. Family expenses, including those of a partner when accompanying Council or commission member on City-related business, as well as child orpet-related expenses; 3. Entertainment expenses, including theatre, shows, movies, sporting events, golf, spa treatments, etc. 4. Meals and entertainment paid on behalf of third parties outside of the City; 5. Gifts of any kind fox any purpose; 6. Alcoholic beverages; Page 1 of 4 2~ - s Attachment "A" Number I-12 City of Cupertino Effective Date:- 12/28/07 Expense Reimbursement Administrative Procedures New and Advance Payment 7. Non-mileage personal automobile expenses including repairs, insurance, gasoline, traffic citations; and 8. Personal losses incurred while on City business. All other expenditures or exceptions require prior approval by the City Council. Expenses for international travel also require prior City Council approval. IV. BUDGETARY LIMT'I'AT1ONS .. Reimbursement or advancement of expenses shall not exceed budgetary limitations. Changes in appropriations will be done through the budget process. V. REIlVIBURSEMENT AND ADVANCE SCHEDULE A. Intent This schedule is written with the intent'~that the City Councilmember, commissioner, or committee member will make every effort to find the lowest possible cost to the City for traveling on City business. For example, if paying for pazking at the airport is less expensive that paying for a taxi or airport shuttle, then the official should drive their car and park at the airport; or if renting a car is lower than taking taxis at the out-of--town location, then a car should be rented; or air reservations should be booked in advance to obtain discounted fares. The following procedures apply whether the expense is being paid through a reimbursement or a direct advance. B. Local Area The local area is defined to be within Santa Clara and San Mateo Counties and within a 40 mile distance from Cupertino when traveling to Alameda County. C. Registration The City will pay the registration fee for authorized attendance at a convention, conference, seminar or meeting. D. Transportation The City will pay transportation costs on the basis of the lowest cost intent stated in paragraph A. Eligible transportation costs include airfare (with coach fare being the maximum), van or taxi service to and from the attendee's home and airport, destination or airport parking charges, taxi and shuttle services at the out-of--town location, trains, tolls, or rental cars. Use of a personal automobile for City business shall be reimbursed or advanced at the rate per mile in effect for such use, except in no case shall it exceed air coach fare if the vehicle is being used for getting to the destination. Government or group rates offered by a provider of transportation must be used when available. Page 2 of 4 27 ' ~ Nnmber I-12 Expense Reimbursement and Advance Payment E. Lodging City of Cnpertuno Administrative Procedures Attachment "A" Effective Date: 12/18/07 New Hotel or lodging expenses of the City official resulting from the authorized event or activity defined in this policy will be reimbursed or advanced if the lodging and event occurs outside of the local area. Not covered will be lodging expenses related to person(s) who are accompanying the City member, but who themselves are not on City business. In this instance, for example, the difference between single and multiple occupancy rates for a room will not be reimbursed. Where the lodging is in connection with a conference or other organized educational activity, City-paid lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor, providing that lodging at the group rate is available at the time of booking. If the group rate at the conference hotel is not available, then the non-conference lodging policy described in the next paragraph should be followed to find another comparable hotel. Where lodging is necessary for an activity that is not xelated to a conference or other organized educational activity, reimbursement or advances shall be limited to the actual cost of the room at a group or government rate. In the event that4a group or government rate is not available, lodging rates that do not exceed the median price for lodging for that area and time period listed on travel websites like www.hotels.com, www.expedia.com or an equivalent service shall be eligible for reimbursement or advancement. F. Meals 1. With No Conference Payments toward or reimbursement of meals related to authorized activities or events shall be at the Internal Revenue Service per diem rate for meals and incidental expenses for a given location, as stated by IRS publications 463 and 1542 and by the U.S. General Services Administration. The per diem shall be split among meals as reasonably desired and reduced accordingly for Less than full travel days. If per diem is claimed, no receipts are necessary. Alternatively, the actual cost of a meal can be claimed, within a standard of reasonableness, but receipts must be kept and submitted for the expense incurred. 2. As Part of a Conference When City officials are attending a conference or other organized educational activity, they shall be reimbursed or advanced for meals not provided by the activity, on a per diem or actual cost basis. The per diem and actual cost rate shall follow the rules described in the meals with no conference paragraph. G. Other Expenses Payments toward or reimbursement of other expenses related to authorized activities or events shall be limited to the actual costs consistent with the application of reasonable standards. Receipts must be kept and submitted for all expenses. Page3of4 27-8 Attachment "A" Number Y-12 City of Cupertino Effective Date: I2/18/07 Expense Reimbursement Administrative Procedures 'New and Advance Payment VI. DIRECT CASH ADVANCE POLICY From time to time, it may be necessary for a City official to request a direct 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 or Department Head no less than seven days prior to the need for the advance with the following information: 1} Purpose of the expenditure; 2} The anticipated amount of the expenditure (for example, hotel rates, meal costs, and transportation expenses); and 3) The dates of the expenditure. An accounting of expenses and return of any unused advance must be reported to the City within 30 calendar days of the official's return on the expense report described in Section VII. VII. EXPENSE REPORT REQUIIZEMENTS All expense reimbursement requests or final accounting of advances received must be approved by the City Manager or Department Head, on forms determined by the Finance Department, within 30 calendar days of an expense incurred, accompanied by a business purpose for all expenditures and a receipt for each non-per diem item. The report will be a public record subject to disclosure under the Public Records Act. VIII. REPORTS TO CITY COUNCIL OR COMMISSIONS At the next regular City Council or commission meeting, each councihnember or commissioner shall briefly report on publicly noticed meetings attended at City expense. If multiple members attended the meeting, a joint report may be made. . IX. POLICY VIOLATIONS Violations of this policy including falsifying expense reports may result in any or all of the following: (1) loss of reimbursement privileges, (2) demand for restitution to the City, (3) civil penalties of up to $1,000 per day and three times the value of the resources used, and 4) prosecution for misuse of public resources. X. RESPONSIBILITY The Finance Department shall administer this policy. Approved: David W. Knapp City Manager Page 4 of 4 2~ - s RESOLUTION NO.07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING RESOLUTION NO.07-176, THE UNREPRESENTED EMPLOYEES' COMPENSATION PROGRAM REGARDING TRAINING AND CONFERENCES POLICY WHEREAS, the City of Cupertino 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 attending conferences, seminars, and training designed to improve skill and information Levels or to implement a City approved strategy for attracting and retaining businesses in the City; and WHEREAS, the Unrepresented Employees' Compensation Program, Policy No. 3, Training and Conferences, provides; guidance to City employees on the use and expenditure of City resources, as well as the standards against which those expenditures will be measured. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby amends the Unrepresented Employees Compensation Program, Policy No. 3, Training and Conferences, as shown in Attachment "A" which is incorporated in this resolution by this reference. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this day of 2007, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk APPROVED: Mayor, City of Cupertino z~-~o .~ Attachment "A" Amendments shown in ~1~~ and italics City of Cupertino UNREPRESENTED EMPLOYEES'COMPENSATION PROGRAM Policy No. 3 TRAINING AND CONFERENCES I. POLICY A. Management Personnel It is City of Cupertino policy that eligible persons, ,under this Compensation Program shall be reimbursed or receive advances in accordance with the schedules, terms and conditions as set forth herein for attendance at conferences, meetings and training sessions as defined below for each. It is the intent of this policy to encourage the continuing education and awareness of said persons in the technical improvements and innovations in their fields of endeavor as they apply to the City or to implement a City approved strategy for attracting and retaining businesses in the City. One means of implementing this encouragement is thrQUgh a formal reimbursement and advance schedule for authorized attendance at such conferences, meetings and training sessions. B. Non-Management Personnel When authorized by ~~~Iead their supervisor, anon-management person may attend a conference, meeting or training session subject to the stated terms and conditions included herein for each with payment toward or reimbursement of certain expenses incurred as defined below for each II DEFINITIONS ~A. Conferences A conference is an annual meeting of a work related organization the membership of which maybe held in the name of the City of or the individual. GB. Local Area The local area is def ned to be within Santa Clara and San Mateo Counties and within a 40 mile distance from Cupertino when traveling to Alameda County. 4 2~-~~ Attachment "A" Amendments shown in ~l~~l~eag}~s and italics I3C. Meetings A "meeting" shall mean a convention, conference, seminar, workshop, meal, or like assembly having to do with municipal government operations. An, employee serving on a panel For interviews of job applicants shall not come under this definition. IND. Training Session A training session is any type of seminar or workshop the attendance at which is for the purpose of obtaining information ~f a work related nature to benefit the City's operations or to enhance the attendee's capabilities in the discharge of assigned duties and responsibilities. III REIMBURSEMENT AND ADVANCE PAYMENT SCHEDULE A. Intent This schedule is written with the intent that the employee will make every effort to find the lowest possible cost to the City for traveling on City business. For example, if paying for parking at the airport is less expensive that paying for a taxi or airport shuttle, then the employee should drive their car and park at the airport;. or if renting a car is lower than taking taxis at the out-of-town location, then a car should be rented; or air reservations should be booked in advance to obtain discounted fares. The following procedures apply whether the expense is being paid through a reimbursement or a direct advance. A B. Registration Registration fees for authorized attendance at a meeting or training session will be paid by the City. I3C. Transportation SxT4,on nn ~x nnnr~ifi~r~ „+t,,, ~~ ~.. eT;~1.7 ~ °'"' + +1, f~'+, 'T ~ v r ~ ~ ,.~ ix iiicv ~a7 7 ~ ~ ~ ~''rt$~~L~~61~}~~&lrttte~CA a,a;~y^,+n +n o +.. r~-~ ,Y, +~n n+ ^ irEl, ~ ~-o T n«n..Ai~$~6i~68'~ +e..rleu~n 1-... ..,a +1... ....a F ....4 o V YV tT`l~lA~ ~'lU n;.. TTno ~~n ..o .~.n~ m,+n,w~~l.:~o ~ r r~+ ~ 'r~nnn 1. ~~ T. T.,, nna + + 1 ~ ~,.,.. /r. Y u 1~A +Y1~M ~ pTTpA+ T^ ~ Y3+ ' ' V MU /. ~ ~~ '+ ~ ~ } The City will pay transportation costs on the basis of the lowest cost intent stated in paragraph A. Eligible transportation costs include airfare (with coach fare being the maximum), van or taxi service to and from the attendee's home and airport, destination or airport parking charges, taxi and shuttle services at the out-of-town location, trains, tolls, or rental cars. Use of a personal automobile for City business shall be reimbursed or advanced at the rate per mile in effect for such use, except in no case shall it exceed air coach fare if 5 z~-~z Attachment "A" Amendments shown in st~et~e~s and italics the vehicle is being used for getting to the destination. Government or group rates offered by a provider of transportation must be used when available. Reimbursement or advances for use of a personal automobile on City business within a local area will not be made so as to supplement that akeady being paid to those persons receiving a monthly mileage allowance. 6D. ~ete~Lod i~nQ . Hotel or lodging expenses of the employee resulting from the authorized event or activity defined in this policy will be reimbursed or advanced if the lodging and event occurs outside of the local area. Not covered wild be lodging expenses related to person(s) who are accompanying the City member, but who themselves are not on City business. In this instance, for example, the difference between single and multiple occupancy rates for a room will not be reimbursed. Where the lodging is in connection with a conference or other organized educational activity, City paid lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor, providing that lodging at the group rate is available at the time of booking. If the group rate at the conference hotel is not available, then the non- conference lodging policy described in the next paragraph should be followed to find another comparable hotel. Where lodging is necessary for an activity that is not related to a conference or other organized educational activity, reimbursement or advances shall be. limited to the actual cost of the room at a group or government rate. In the event that a group or government rate is not available, lodging rates that do not exceed the median price for lodging for that area and time period listed on travel websites like www.hotels.com, www.expedia.com or an equivalent service shall be eligible for reimbursement or advancement. E. Meals 1. With No Conference Payments toward or reimbursement of meals related to authorized activities or events shall be at the Internal Revenue Service per diem rate for meals and incidental expenses 6 27-13 Attachment "A" Amendments shown in s#~a~s and italics for a given location, as stated by IRS publications 4b3 and 1542 and by the U.S. General Services Administration. The per diem shall be split among meals as reasonably desired and reduced accordingly for less than full travel days. If per diem is claimed, no receipts are necessary. Alternatively, the actual cost of a meal can be claimed, within a standard of reasonableness, but receipts must be kept and submitted for the expense incurred. 2. As Part of a Conference When City personnel are attending a conference or other organized educational activity, they shall be reimbursed or gdvanced for meals not provided by the activity, on a per diem or actual cost basis. The per diem and actual cost rate shall follow the rules described in the meals with no conference paragraph. ~F. Other Expenses Payments toward or reimbursement of expenses at such functions shall be limited to the actual costs consistent with the application of reasonable standards. .. ~,~ Other reasonable expenses related to business purposes shall .be paid consistent with this policy. No payments shall be made unless, where available, receipts are kept and submitted for all expenses incurred. When receipts are not available, qualifying expenditures shall be reimbursed upon signing of an affidavit of expenditure. No payment shall be made for any expenses incurred which are of a personal nature or not within a standard of reasonableness for the situation as may be defined by the Finance Department . G. Non Reimbursable Expenses The City will not reimburse or advance payment toward expenses including, but not limited to: 1. The personal portion of any trip; 2. Political or charitable contributions or events; 3. Family expenses, including those of a partner when accompanying the employee on City- related business, as well as child orpet-related expenses; 4. Entertainment expenses, including theatre, shows, movies, sporting events, golf, spa treatments, etc. 7 27-14 .Y Attachment "A" Amendments shown in st~l~s and italics S. Gifts of any kind for any purpose; 6. Service club meals; 7. Alcoholic beverages; 8. Non-mileage personal automobile expenses including repairs, insurance, gasoline, traffic citations; and 9. Personal losses incurred while on City business. IV ATTENDANCE AUTHORIZATION A. Budgetary Limitations Notwithstanding any attendance authorization contained herein, reimbursement or advances for expenses ' relative to conferences, meeting or training sessions shall not exceed the budgetary limitations. B. Conference Attendance Attendance at conferences or seminars by employees must be approved by their supervisor C. Meetings Any employee, management or non-management, may attend a meeting when authorized by their supervisor ~e~Ie$d. D. Trainin Sessions Any employee, management or non-management, may attend a training session when authorized by their supervisor Dapa~~ead. V. FUNDING A. Appropriation Policy It shall be the policy of the City to appropriate funds subject to availability of resources. B. Training Sessions Payments towazd or reimbursement of expenses incurred in attendance at training sessions, will be appropriated annually through the budget process. g 27-15 r~ Attachment "A" Amendments shown in st~lc~~l~e~tg~;s and italics VI. DIRECT CASHADVANCEPOLICY From time to time, it may be necessary for a City employee to request a direct 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 their supervisor no less than seven days prior to the need for the advance with the following information: 1) Purpose of the expenditure; 2) The anticipated amount of the expenditure (for example, hotel rates, meal costs, and transportation expenses); and 3) The dates of the expenditure. An accounting of expenses and return of any unused advance must be reported to the City within 30 calendar days of the employee's return on the expense report.,described in Section VII: VII. EXPENSE REPORT REQUIREMENTS All expense reimbursement requests or final accounting of advances received must be approved by their supervisor, on forms determined by the Finance Department, within 30 calendar days of an expense incurred, accompanied by a business purpose for all expenditures and a receipt for each non- per diem item. Revised 7/83, 7/85, 7/87, 7/88, 7/91, 7/92,12/07 9 z~-~s Vendor No. Attachment "B" CITY OF CUPERTINO REIMBURSEMENT OF EXPENSES TOE FINANCE DEPARTMENT NAME DEPARTMENT CLAIM PERIOD SCHEDULE A Record of Expenses Claimed Meals Other Daily Date Ex lanation B L D * Hotel Amount Total $ ,. $ $ $ $ $ * CODE for Other Expenses A -Taxi, Bus, Car Fare Total B -Telephone & Telegraph C -Parking Fees D - TrainlPlane Fare (attach receipts} E -Registration Fees (attach receipts} F -Guest Expenses {name & title) G -Miscellaneous (attached receipts) H -Per Diem I certify that this claim is a true record of expenses incurred on official business of the City of Cupertino during the above period. All expenses reported on this form comply with the City's expense reimbursement and direct advance payment policies and procedures. Date Submitted ApprovaE Recommended: TOTAL EXPENSES CLAIMED $ TOTAL MILEAGE EXPENSE CLAIMEQ $ LESS ADVANCE PAID $ TOTAL REIMBURSEMENT $ ACCOUNT DISTRIBUTION Account Number Amount $ Employee Signature Supervisor, Department Head, or City Manager .FOR COMPLETION BY FINANCE DEPARTMENT Receipt Number Approval Date Finance Dept Signature 27-17 SCHEDULE B Record of Travel in Privately Owned Automobile Travel Area Number Date From To of Miles Pu ose Total Milea a from a e 1 of su lerment Total Milea a from a e 2 of su lement Total @ $ 27-18 EXHIBITS BEGIN HERE cc ~ 21 «lo~ ~~~ ~~ ~;~t CUPERTINO Agenda Item No. ~~~ SUBJECT AND ISSUE ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 (408) 777-3220 • FAX (408) 777-3109 SUMMARY Meeting Date: December 18, 2007 Adopt a resolution establishing an Expense Reimbursement and Advance Payment Administrative Procedure for City Council members, commissioners, and committee members and adopt a resolution amending the Unrepresented Employees Compensation Program Training and Conferences Policy. BACKGROUND Assembly Bill 1234 now requires that cities which reimburse elected officials and appointed members of their commissions and committees for actual and necessary expenses incurred in the performance of official duties, must adopt a written policy defining the activities and expenses that are reimbursable. T+ ~'~^ ~+°+°~ +,,~* ,•~'°~~ ~2il~G~--'a~-ti2V~-iTite~c`kl--I~CG~zc°,ziii~v°c-i~rC~~aicririzrt~S. It also states that reimbursements require the submission of actual receipts ~ Council members and Commissioners. Presently, there are travel and expense reimbursement policies for City employees but none specifically for elected officials and appointed commissioners and committee members. When public officials had submitted expenses for reimbursement, staff had applied the employee policy to process the payment. However, governing bodies and associated advisory boards must now follow a somewhat more restrictive and detailed policy than current City guidelines. The policy recommended by staff combines language from current City policy and uses examples from the Institute for Local Government and other cities. Council members and commissioners could receive travel and expense reimbursements or advances for the following activities: • Communicating with representatives of regional, state and national government on City adopted policy positions; . • Attending conferences, seminars, and training designed to improve skill and information levels; • Participating in regional, state and national organizations whose activities affect the City; • Attending City events; and ~7- Expense Reimbursement Policies December 18, 2007 Page 2 of 3 Attending functions of other local civic or community organizations where there is a clear nexus between the event and the member's attendance as an official representative of the City. Purely social events, service club dues and meals, and political or charitable contributions or events would be excluded. For purposes of this section, reimbursable fundraisers and events include, but are not limited to, Cupertino Union School District, Fremont Union High School District, Foothill-De Anza Community College District and Cupertino Chamber of Commerce activities. Travel costs include transportation, lodging, meals and other incidental expenses. Depending on the situation, reimbursement or advance payment rates on such costs would be tied to government or group rates, median hotel prices per area, or mileage and per diem rates as defined by the IRS. At the next regular City Council or commission meeting, Council members and commissioners would need to briefly report on publicly noticed meetings attended at City expense. Other local general law cities such as Los Altos Hills and Daly City have adopted similar policies to be in compliance with the general law effect of AB 1234. Staff also recommends applying these new guidelines into the unrepresented employee training and conferences policy. FISCAL IMPACT No fiscal impact. Existing budget limits on travel, conferences and meetings still apply. RECOMMENDATION 1) Adopt a resolution establishing an expense reimbursement and advance payment procedure for City Council members, commissioners, and committee members. 2) Adopt a resolution amending the training and conferences policy for unrepresented employees. Submitted by: Approved for submission: David Woo David W. Knapp Finance Director City Manager Reviewed by: Carol A. Atwood Director of Administrative Services Expense Reimbursement Policies December 18, 2007 Page 3 of 3 Attachments: 1) Resolution establishing an expense reimbursement and advance payment administrative procedure 2) Expense Reimbursement and Advance Payment Administrative Procedure Number I-12 (Attachment "A") 3) Resolution amending the unrepresented employees compensation program 4) Unrepresented Employees Compensation Program Policy No. 3, Training and Conferences (Attachment "A") 5) Revised Expense Reimbursement Form (Attachment "B")