CC RES 2007-024 RESOLUTION NO. 2007-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES
AMENDING AND RESTATING ITS EXPENSE REIMBURSEMENT AND USE OF PUBLIC
RESOURCES POLICY.
A. The City Council of the City of Rancho Palos Verdes takes its stewardship over the
use of its limited public resources seriously. Periodically, the City Council has adopted policies
relating to expenses actually and necessarily incurred by public officials in connection with their
official duties on City business. Most recently, in 2004, the City Council amended City Council
Policy No. 16, which is the City policy regarding the reimbursement of City Council Members and
members of City commissions and committees for expenditures incurred for travel and meetings and
guidelines regarding reimbursement for expenses incurred in connection with City business. Most, if
not all of the policies, practices and procedures contained in this Resolution already are set forth in
City Council Policy No. 16. This Resolution is intended to clarify and augment that City Council
Policy.
B. The City of Rancho Palos Verdes has a history and practice of limiting expenses that
may be incurred by City Council Members, members of City commissions and committees, and
employees for travel and related conference expenses. In addition, the City always has required
such expenses to be reasonably incurred in the conduct of the City's business, in accordance with
the requirements of previously existing law.
C. State law recently was amended to mandate that cities adopt written expense
reimbursement policies that apply to members of the City Council and members of other City
commissions and committees.
D. The City Council finds that there are benefits to the City if the City reimburses City
Councilmembers and members of other City commissions and committees for their actual and
necessary expenses incurred in connection with the City's business. Those 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.
E. 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. Each meal expenditure must comply with the limits and reporting requirements of this
policy and applicable local, state and federal law.
F. This policy provides guidance to the City's elected and appointed officials on the use
and expenditure of City resources, as well as the standards against which expenditures will be
measured. This policy satisfies the requirements of Gov't Code §§ 53232.2 and 53233.3,
supplements the definition of actual and necessary expenses for purposes of state law 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. The policy also applies to any charges
made to a City credit card.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES
HEREBY FINDS, RESOLVES AND ORDERS:
Section 1. Statement of Policy. This policy shall apply to the use of City funds and the
reimbursement of expenditures incurred by the members of the City Council and the members of
other City commissions and committees (sometimes referred to hereinafter as "public officials.")
This policy does not apply to other public officials and employees of the City who are not members
of legislative bodies of the City and are governed by the City's personnel rules.
Section 2. Annual Budget. The City Council shall approve an annual budget, prepared by the
City Manager, for overnight travel and meeting attendance by City officials. All other expenses for
overnight trips, conferences and events that exceed or are not approved as part of the standard
travel budget shall only be funded upon prior approval by a majority of the City Council at a duly
noticed City Council meeting.
Section 3. Authorized Expenses. City funds, equipment, supplies and staff time must only be
used for authorized business of the City. Expenses incurred by public officials in connection with the
following types of activities 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.
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, 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.
9. Implementing a City-initiated strategy for attracting or retaining businesses to the
City.
10. Attending meetings for which a meeting stipend is expressly authorized under
this policy.
Section 4. Council approval required. The reimbursement of an expense in excess of the
amounts authorized in this policy or in the City's annual budget, incurred in connection with
international or out-of-state travel, or in excess of the annual limits established for each office holder
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shall require prior approval by a majority of the City Council at a duly noticed City Council meeting.
Section 5. Non-reimbursable expenses. Examples of personal expenses that the City will not
reimburse include:
1. The personal portion of any trip.
2. Political or charitable contributions.
3. Family expenses, including a spouse or partner's expenses when accompanying
a City official on City-related business, as well as expenses related to children or pets.
4. Entertainment expenses (e.g. theater, movies, recreation, gym fees and massage
expenses, or 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.
Section 6. Use of Accounting Procedures. City shall follow established accounting procedures
of the City for payment and/or reimbursement of expenses related to travel and meeting attendance.
City Council members shall submit reservation requests or receipts to the City Manager's Office,
which will prepare the warrant request for payment or reimbursement relating to City Council travel
and meeting attendance. Travel and meeting expenses reimbursed by other agencies are not
subject to reimbursement by the City. Any questions regarding the propriety of a particular type of
expense shall be submitted to the City Council for determination before the expense is incurred.
Section 7. Cost Control. To conserve City resources and keep expenses within community
standards for public officials, expenditures should adhere to the following guidelines. Any expenses
incurred that exceed these guidelines must be approved in advance by a majority of the City Council
at a duly noticed City Council meeting.
1. Transportation.The City will use the most economical mode and class of
transportation reasonably consistent with the City official's scheduling needs, time constraints, and
cargo space requirements, using the most direct and time-efficient route. Government and group
rates will be used when available. The City Council recognizes that certain public officials are part-
time volunteers, and that other commitments may impact the economy of available travel
arrangements.
a. 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), 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.
b. Automobile. The City Council finds that the use of an automobile is essential
to the performance of the functions of a member of the City Council and the Planning Commission in
the City of Rancho Palos Verdes. In order to ensure that members of the City Council and Planning
Commission maintain an automobile, and pursuant to Government Code Section 1223, the City shall
reimburse Councilmembers and Planning Commissioner's on a monthly basis, upon submittal of
such a request on the official's monthly reimbursement form, a flat amount to cover the expenses of
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maintaining a vehicle and driving that vehicle within the City and fifty miles of the City to both City
meetings and functions and to meetings of organizations to which the City is a member. The flat
rate for the Mayor established pursuant to this policy is $350 per month. The flat rate for other
Members of the City Council is $200 per month, and the flat rate for Members of the Planning
Commission for conducting site visits within the City is $50 per month. These amounts are
determined to be the reasonable estimate of monthly mileage amounts incurred by the Mayor, City
Councilmembers and Planning Commissioners in performing their official duties within the City, and
in the case of the Mayor and Councilmembers, within fifty miles of the City. Personal automobile
travel for City Councilmembers more than fifty miles from the City shall be reimbursed based on the
number of miles traveled and at Internal Revenue Service rates presently in effect(see
www.irs.gov). 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 Internal Revenue Service rates will
not be paid for local rental vehicles; only receipted fuel expenses will be reimbursed.
c. Car Rental. Charges for rental vehicles (e.g. rental rate, applicable taxes and
insurance, receipted fuel expenses) may be reimbursed for out of town travel, if renting 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. 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, but higher rates may
be appropriate.Where feasible, City officials shall share a rental car.
d. Taxis/Shuttles. Taxis/shuttles fares may be reimbursed, including a 15
percent tip, where the fare is equal to or less than the cost of car rentals, gasoline and parking
combined or such transportation is necessary for time-efficiency.
2. Lodging. Lodging expenses will be reimbursed or paid for when travel
on official City business reasonably requires an overnight stay.
a. 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.
b. 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 to or less than
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 or 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 circumstances.
3. Meals. City officials shall take, when available, meals provided as part of a
conference registration fee. Reimbursable meal expenses and associated gratuities shall not
exceed $80 per day. Such amount will be annually adjusted without further action by the Council to
reflect changes in the cost of living in accordance with statistics published by the U. S. Department
of Labor, Bureau of Labor Statistics Consumer Price Index, all urban consumers for the Los Angeles
Metropolitan Area.
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4. Telephone/Fax/Cellular. Officials will be reimbursed for all actual
telephone and fax expenses incurred on City business. For cellular calls when the official has a
particular number of minutes included in the official's plan, the official should identify the percentage
of calls made on public business and will be reimbursed for that percentage of applicable charges.
The City may provide cellular telephones at the City's cost for the use of public officials for City
business.
5. Internet. City 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. Public officials may be reimbursed the actual cost of Internet connection
fees for home use, if such connection is reasonably necessary for the public official to carry out his
or her duties.
6. Airport Parking and Other Charges. The City will reimburse: parking costs
based on actual costs or the equivalent of long-term parking rates used for travel exceeding 24-
hours; baggage handling fees; and reasonable gratuities.
Section 8. Cash Advance Policy. It may be necessary for an official to request a cash advance
to cover anticipated expenses and per diem expenses while traveling or doing business on the City's
behalf. Any request for an advance should be submitted to the Finance Department not less than 5
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 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).
Any unused advance must be returned to the City treasury within 5 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. For employees, the City Manager shall make the final
decision regarding compliance with this policy. For the City Manager and elected and appointed City
officials, the City Council shall make such decisions, if necessary.
Section 9. Credit Card Use Policy. City officials may use the City's credit card for such
purposes as airline tickets, meals 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 ten days of the end of use. City credit cards may not be used at
any time for personal expenses, even if the official subsequently reimburses the City.
Section 10. Expense Report Content and Submission Deadline. All cash advance
expenditures, credit card expenditures and expense reimbursement requests must be submitted on
an expense report form provided by the City. Expense reports must document that the expense in
question met the requirements of this policy. The 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
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income tax liability.
Except as required sooner by this policy, officials must submit their expense reports within 30
calendar days of an expense being incurred, accompanied by receipts documenting each expense.
Restaurant receipts, in addition to any credit card receipts, must be submitted. The inability to
provide such documentation in a timely fashion may result in the expense being borne by the official.
Section 11. Verification of Expense Reports. All expenses are subject to verification that they
comply with this policy. The City Manager and/or the Director of Finance or his/her designee may
request additional documentation or explanation of individual expenditures for which reimbursement
is requested by a public official.
Section 12. Reports to the Public. 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.
Section 13. Compliance With Laws. Some expenditures may 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.
Section 14. The City Clerk shall certify to the passage and adoption of this resolution.
PASSED AND ADOPTED this 6th day of March 2007.
/
Mayor
Attest:
City -k
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I, Carolynn Petru, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above
Resolution No. 2007-24 was duly and regularly passed and adopted by the said City Council at a
regular meeting thereof held on March 6, 2007.
Cit lerk
Resolution No. 2007-24
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