Policy 2.5
Reference: Government Code §§ 53232–53232.4 (AB 1234);
Resolution No. 26-XX
Section 1. Purpose and Findings
1.1 Purpose.
This Travel and Expense Reimbursement Policy ("Policy") establishes the types of occurrences that qualify identified City Officials (as defined below) to receive reimbursement of expenses relating to travel, meals, lodging, and other actual and necessary expenses incurred in the performance of official duties, and the rates, approvals, and documentation that apply to those expenses. Nothing in this Policy authorizes an expenditure prohibited by law, and no provision of this Policy supersedes Government Code sections 53232 through 53232.4 or any other law establishing reimbursement rates or limits applicable to the City.
1.2 Findings.
The City Council of the City of Laguna Beach ("City") finds that the City holds its limited public resources in trust for the community, and that public funds may be expended only where the expenditure serves a direct and identifiable public purpose of the City. The City Council further finds that the participation of City Officials in conferences, training, professional organizations, and intergovernmental and community activities improves the quality of governance and service delivery in Laguna Beach, and that reimbursement of the reasonable costs of that participation is an appropriate use of public funds when it is authorized, documented, and disclosed in accordance with this Policy.
Section 2. Definitions
For purposes of this Policy, the following definitions shall apply:
2.1 "City Official": A member of the City Council, the elected City Clerk, the elected City Treasurer, and a member of any City board, commission, or committee of the City that is a "legislative body" within the meaning of Government Code section 54952, including without limitation the Planning Commission, the Arts Commission, the Design Review Board, and the City's advisory and ad hoc committees. For the avoidance of doubt, the term does not include City employees, who are subject to separate administrative policies, rules, and documents governing travel and expense reimbursement.
City Council Policy/Procedure
Travel and Expense Reimbursement Policy
Policy 2.5
2 2.2 "Finance Director": The Director of Finance, or such other City employee as the City Manager designates as responsible for the City's finance function.
2.3 "GSA rates": The per diem rates for lodging and for meals and incidental expenses published by the United States General Services Administration for the continental United States, and the corresponding rates published by the Department of Defense and the Department of State for non-foreign and foreign locations outside the continental United States.
2.4 "Local travel": Travel to a destination within fifty (50) miles of Laguna Beach City Hall.
All other travel is "non-local travel."
2.5 "Mileage rate": The standard mileage rate for business use of an automobile published by the Internal Revenue Service and in effect on the date the travel occurs.
2.6 "Overnight travel": Travel that reasonably requires lodging away from the traveler's residence.
Section 3. General Principles
3.1 Public purpose required.
The City reimburses only actual and necessary expenses incurred in the performance of official duties. An expense that primarily serves a personal, political, or private interest is not reimbursable, regardless of the setting in which it was incurred.
3.2 Budget authority required.
No expense is reimbursable unless funds for the expense have been appropriated and remain available in the applicable departmental or City Council budget. A person seeking reimbursement should confirm that the proposed expense is both reimbursable and budgeted before incurring it.
If a budget includes an education, training, travel, or similar line item, that budgeted amount shall be available proportionately to each member of the legislative body; provided, however, that the Mayor shall be able to use all available education, training, travel or similarly budgeted funds in the City Council budget, when necessary to perform the duties of Mayor.
3.3 Most economically reasonable option.
A traveler must select the most economical mode, class, and provider of travel, lodging, and related services that is reasonably consistent with the purpose and schedule of the trip and with the traveler's documented accessibility needs. Government, group, and conference rates offered by a provider of transportation or lodging services must be used when they are available, as required by Government Code section 53232.2(e). Consistent with Government Code section 53232.2(g), a City Official who chooses to incur costs above the rates established by this Policy, and who has not obtained advance approval for those costs under Section 4.2, may do so at his or her own expense. The City will reimburse only the amount authorized by this Policy, and the City Official bears the difference.
3.4 Advance resolution for reimbursements.
Any question about whether a particular expense is reimbursable must be resolved before the expense is incurred. Members of a board, commission, or committee shall direct such questions to Policy 2.5
3 the staff liaison for the board, commission, or committee, who shall thereafter consult with the Finance Director. Members of the City Council, the City Clerk, and the City Treasurer direct such questions to the City Manager and/or the City Attorney. If the question cannot be resolved under this Policy, the expense must be presented to the City Council for approval in advance in a public meeting under Section 4.2. For the avoidance of doubt, an expense that is paid directly by the City, paid by a City payment card, covered by a registration fee, or reimbursed or provided by another agency, organization, or person is not separately reimbursable to the traveler.
Section 4. Authorized Activities
4.1 Occurrences qualifying for reimbursement.
Consistent with Government Code section 53232.2(b), the following occurrences constitute the performance of official duties for which a City Official may be reimbursed for actual and necessary expenses, when authorized in advance and when funds are budgeted and available:
4.1.1 Attendance at and participation in:
a. conferences, meetings, and activities of regional, state, and national organizations whose activities affect the City's interests, including the League of California Cities, the National League of Cities, the Association of California Cities - Orange County, and similar organizations;
b. conferences, workshops, seminars, and training and educational programs designed to improve the skill, competence, or information level of the attendee in the performance of official duties or to otherwise satisfy legally required trainings; or c. conferences, meetings, or events at the direction or request of the City Council;
4.1.2 Attendance at meetings, activities, or events of:
a. another public agency, a joint powers authority, or a multi-jurisdictional body on which the attendee serves as the City's representative or alternate; or b. community organizations whose activities involve or affect the City's interests, when the City Official is (i) a scheduled speaker or presenter on behalf of the City, or (ii) attending at the direction of the City Council; provided, however, that the Mayor does not need such direction and may designate alternative City Councilmembers to attend in his or her place;
4.1.3 Attendance in an official capacity at events that (i) recognize service to or by the City, its employees, or the community; and (ii) are within the subject matter jurisdiction of the City Official’s duties;
4.1.4 Attendance in an official capacity with representatives of regional, state, federal, international, or tribal government, or representatives of business or community interests at the local, regional, state, or national level, concerning policy positions adopted by the City Council; for a City Official who is not a member of the City Council, such attendance must be authorized by the City Council; and
Policy 2.5
4 4.1.5 Meetings for which a stipend or compensation is expressly authorized by this Policy, by City Council resolution or ordinance, or by State law.
4.2 Expenses outside this Policy.
Consistent with Government Code section 53232.2(f), any expense of a City Official that does not fall within this Policy, or that exceeds the rates established by this Policy or by the applicable federal schedules, must be approved by the City Council in a public meeting before the expense is incurred.
Section 5. Non-reimbursable Expenses
5.1 Expenses that will not be reimbursed.
The following expenses are not reimbursable, are not payable by a City payment card, and may not be paid directly by the City. This list is illustrative and not exhaustive:
5.1.1 Any expense not incurred in the performance of official duties;
5.1.2 A personal portion of any trip, including additional travel days, side trips, and any incremental cost attributable to a personal extension of a business trip;
5.1.3 Expenses of a spouse, domestic partner, family member, guest, or other companion accompanying the traveler, including their transportation, lodging differential, meals, and registration;
5.1.4 Childcare, elder care, pet care, and kenneling costs;
5.1.5 Political contributions and expenses related to attendance at or participation in political or campaign events, and charitable contributions;
5.1.6 Alcoholic beverages;
5.1.7 Entertainment and recreation, including theater, concerts, sporting events, in-room or theater movies, tours, golf, gym and spa charges, and similar activities, whether or not other attendees are present;
5.1.8 Personal services and sundries;
5.1.9 Non-mileage costs of operating a personal vehicle, including fuel, repairs, maintenance, insurance, and roadside assistance, which are compensated by the mileage rate;
5.1.10 Traffic, parking, and other citations and fines, and any late fee or interest charge;
5.1.11 Airline seat upgrades, premium or extra-legroom seating, priority boarding, lounge access, memberships, and trip or baggage insurance;
5.1.12 Personal losses, including lost, stolen, or damaged personal property;
5.1.13 Cancellation, change, and no-show charges resulting from the traveler's failure to cancel or change a reservation in a timely manner, except where the change or cancellation is caused by City business, illness, or another circumstance beyond the traveler's control; Policy 2.5
5 5.1.14 Expenses incurred by any person other than the traveler, except as expressly authorized under this Policy;
5.1.15 Personal telephone, data, and streaming charges; and
5.1.16 Any expense for which the traveler cannot produce the documentation required by this Policy.
Section 6. Authorization and Approval
6.1 Verification and approval authority.
Travel requests and reimbursement requests or inquiries are reviewed and approved as follows:
6.1.1 City Councilmember, City Clerk, or City Treasurer:
a. local, non-local, and overnight travel and expenses within this Policy must be reviewed by the City Manager to confirm budget availability and Policy compliance, in consultation with the City Attorney; and
b. out-of-state or international travel, or any expense outside this Policy must be approved by the City Council in a public meeting before the expense is incurred; except that the Mayor, or Mayor’s designee, may seek reimbursement for out-of-state travel for Mayor-related duties without such prior approval and otherwise consistent with this Policy.
6.1.2 Member of a board, commission, or committee: approved by the City Manager upon the recommendation of the City staff member who serves as liaison to the body; out-of-state or international travel is not permitted.
6.1.3 No person may approve his or her own travel request or inquiry or expense report.
All requests or inquiries pursuant to this Section must be submitted in writing and verified or approved before any expense for non-local travel, overnight travel, or air travel is incurred. The travel request or inquiry must state the purpose of the travel and its relationship to City business, the destination and dates, the estimated cost by category, and the budget account to be charged.
6.2 Coordination of arrangements.
The City Manager’s Office, or such other department as the City Manager designates, shall coordinate travel arrangements for members of the City Council and for members of boards, commissions, and committees. Wherever practicable, registration fees and lodging are paid directly by the City rather than reimbursed, and expenses paid directly by the City are not included in any daily reimbursement limitation applicable to the traveler.
Section 7. Reimbursement Rates
7.1 General rule.
Except where this Policy establishes a different rate or limit, reimbursement rates under this Policy are the rates established by the following federal schedules, as they exist on the date the expense is incurred: lodging and meals and incidental expenses are reimbursed at the GSA rates for the travel destination, and use of a personal vehicle is reimbursed at the mileage rate. This provision Policy 2.5
6 is adopted under Government Code section 53232.2(c), which permits the City to specify reasonable reimbursement rates and otherwise applies Internal Revenue Service rates.
7.2 Automatic adjustment.
Because this Policy ties reimbursement rates to published federal schedules rather than to fixed dollar amounts, the rates adjust automatically when those schedules are revised. No further City Council action is required to give effect to a rate as referenced herein. The Finance Director will make the current applicable rates available to City Officials, if requested.
7.3 Group rates.
7.3.1 Conference Group Rates. Consistent with Government Code section 53232.2(d), when lodging is in connection with a conference or organized educational activity, the reimbursable lodging cost may not exceed the maximum group rate published by the conference or activity sponsor, provided that lodging at the group rate is available to the traveler at the time of booking. If the conference group rate is not available at the time of booking, the traveler must obtain comparable lodging at a similar rate, or the lowest rate available, and must document on the expense report that the conference group rate was unavailable.
7.3.2 Government and Group Rates. Consistent with Government Code section 53232.2(e), travelers must request and use government and group rates offered by providers of transportation and lodging services whenever those rates are available. A traveler who is unable to obtain such a rate must note that fact on the expense report.
Section 8. Transportation
8.1 General.
Travelers must use the most economical mode and class of transportation that is reasonably consistent with scheduling needs, accessibility needs, cargo requirements, and the purpose of the trip, and must travel by the most direct and time-efficient route consistent with those needs.
8.2 Air travel.
Air travel is reimbursed at coach or economy class only, and only on commercial airlines.
Exceptions require advance approval, and will be granted only for a documented medical or accessibility need, as determined by the City Manager or designee. Tickets should be purchased as far in advance as practicable, and ordinarily not less than fourteen (14) days before departure, to obtain the lowest reasonable fare. Government and group fares must be used when available.
Reasonable checked-baggage fees for the number of bags necessary for the trip are reimbursable.
If City business causes a traveler to reschedule a flight, any resulting fare difference and associated airline fees are reimbursable.
8.3 Vehicles.
8.3.1 Use of a personal vehicle. Use of a personal vehicle for City business is reimbursed at the mileage rate, which compensates the traveler for fuel, insurance, maintenance, depreciation, and all other costs of operating the vehicle. Bridge and road tolls and parking fees are reimbursed separately, supported by receipts. Mileage is computed from the traveler's regular work location or residence, whichever produces the lesser distance, to the destination and return. A traveler who Policy 2.5
7 uses a personal vehicle must hold a valid driver's license and the minimum automobile liability insurance required by law.
8.3.2 Use of a rental vehicle. A rental vehicle is reimbursable only where the travel circumstances require it and where its cost, including rental, fuel, and parking, is reasonable in comparison to airfare (where applicable), taxis, rideshare, shuttles, and public transportation.
Standard, compact, or intermediate class vehicles must be used where available and adequate; luxury vehicles and chauffeured services (not inclusive of rideshare) are not reimbursable.
Advance reservations should be made to secure the most economical class of vehicle, and government and group rates must be used when available. The vehicle must be refueled before return where practicable, and prepaid fuel options are not reimbursable. Fuel, charging, parking, and tolls related to an authorized rental vehicle are reimbursable with receipts.
8.3.3 Taxis, rideshares, shuttles, and public transportation. Expenses for taxis, rideshare services, shuttles, and public transportation required for City business are reimbursed with receipts, including a reasonable gratuity, in accordance with this Policy. Required travel includes travel to and from airports and to and from other locations required for City business. Travelers are encouraged to use complimentary hotel or conference shuttles and other economical options when available.
8.3.4 Airport parking. Parking a vehicle at an airport is reimbursable with receipts. Where the trip requires parking for more than twenty-four (24) hours, reimbursement is limited to the long-term or economy parking rate at that airport. Where ground transportation to and from the airport would cost less than parking for the duration of the trip, travelers are encouraged to use ground transportation.
Section 9. Lodging
Lodging is reimbursable at actual cost, including taxes and mandatory fees, for single occupancy, when overnight travel is reasonably necessary to conduct City business, and is limited to the minimum number of nights required. Lodging the night before an event is reimbursable where the event begins before 9:00 a.m. and the travel time from Laguna Beach would require departure before 6:00 a.m. Lodging for local travel is not reimbursable. Lodging rates are governed by Section 7. Lodging expenses must be documented by an itemized hotel folio showing the nightly rate, taxes, and any additional charges.
Section 10. Meals and Incidental Expenses
10.1 Non-local overnight travel: per diem.
10.1.1 For non-local overnight travel, meals and incidental expenses are reimbursed on a per diem basis at the GSA meals and incidental expenses rate for the destination. Receipts are not required for per diem reimbursement. On the first and last day of travel, the per diem is seventyfive percent (75%) of the full daily rate, consistent with federal practice. Per diem is payable only Policy 2.5
8 for days actually spent on City business, for programmed days of a conference or meeting, and for days spent in travel.
10.1.2 Where a meal is included in a conference or event registration fee, or is otherwise provided at no cost to the traveler, the corresponding meal allowance is deducted from the per diem. The deduction does not apply where the traveler was unable to attend the portion of the event at which the meal was provided because of City business or a documented dietary or medical need that the event could not accommodate.
10.2 Non-overnight and local travel: actual cost.
For travel that does not include an overnight stay, meals are reimbursed at the actual, reasonable cost with an itemized receipt, and may not exceed the applicable GSA meal rate for the location.
Per diem is not paid for non-overnight travel.
10.3 Gratuities.
Meal gratuities of up to twenty percent (20%) of the amount paid, as otherwise consistent with this Policy, are reimbursable. Gratuities for ground transportation are limited to fifteen percent (15%).
Gratuities for baggage handling and housekeeping are covered by the incidental expenses component of the per diem and are not separately reimbursable during per diem travel.
Section 11. Registration, Training, and Other Expenses
11.1 Registration fees.
Registration fees for authorized conferences, workshops, seminars, and training, including virtual and online programs, are reimbursable, and should be paid directly by the City whenever practicable. Early registration discounts should be used when available. Optional social, recreational, and guest activities offered in connection with a conference are not reimbursable unless the City Official documents that attendance served a City business purpose and the activity was approved in advance.
11.2 Other business expenses.
Other expenses directly related to City business are reimbursable when approved in advance, including the cost of rental of audio-visual or meeting equipment, printing and duplication of City materials, and shipping of City materials to and from an event, when necessary for the purpose of the travel.
Section 12. Direct Payment by the City; Expense Reports and Documentation
12.1 Direct payment by the City.
Where the City pays a registration fee, lodging deposit, or airfare directly, the traveler must still submit a travel request or inquiry under Section 6.1 and must submit the supporting documentation with the post-travel expense report.
12.2 Expense Report.
12.2.1 Required Form. As required by Government Code section 53232.3(a), the City provides expense report forms to be used for all reimbursement requests. A request for Policy 2.5
9 reimbursement of an out-of-pocket expense must be submitted on the City's expense report form, and must be signed or electronically certified by the person requesting reimbursement.
12.2.2 Required Content. Each expense report must include: the business purpose of each expense and its relationship to City business; the dates, destination, and activity; the budget account to be charged; original itemized receipts for each expense for which reimbursement is sought; for meals reimbursed at actual cost, a list of all persons present with their organizations and titles; for conference travel, a copy of the conference agenda or program; and any comparison or documentation as required by this Policy.
12.2.3 Receipts. An itemized receipt showing the goods or services purchased is required.
Where a receipt includes both reimbursable and non-reimbursable items, the reimbursable items must be clearly identified by highlighting, circling, or a written itemization attached to the receipt.
Where a receipt has been lost, the traveler must submit a signed statement describing the expense and explaining why the receipt is unavailable; repeated use of such statements is not permitted.
12.2.4 Submission deadline. Expense reports must be submitted within thirty (30) calendar days after the expense is incurred or, for travel, after the return date, and in no event later than sixty (60) calendar days. Sixty (60) calendar days is established as the "reasonable time" for submission required by Government Code section 53232.3(c). A reimbursement request submitted more than sixty (60) calendar days after the expense is incurred may be denied, and any amount nonetheless reimbursed may be reported by the City as taxable income to the recipient consistent with Internal Revenue Service accountable plan rules.
12.2.5 Review. Every expense report is reviewed for compliance with this Policy by the Finance Director, or designee, before payment. An expense that is unreasonable in amount, is not supported by the required documentation, or is not authorized by this Policy may be reduced or denied, and any amount already paid must be repaid to the City.
Section 13. Reports to the City Council and Appointing Body; Public Records; Political Reform Act Reporting
13.1 Report requirement.
13.1.1 Required reporting. As required by Government Code section 53232.3(d), a member of the City Council who attends a meeting at City expense must provide a brief report on the meeting at the next regular meeting of the City Council. A member of a board, commission, or committee who attends a meeting at City expense must provide a brief report at the next regular meeting of that body, and the report is transmitted to the City Council with that body's minutes.
13.1.2 Form of report. The report may be given orally at the meeting or submitted in writing. A written report is filed with the City Clerk and included in the agenda packet or the record of the meeting. Where more than one member attended the same meeting, a single joint report may be given.
13.2 Public records.
As provided in Government Code section 53232.3(e), all travel requests, expense reports, receipts, and other documents related to reimbursable City expenditures are public records subject to Policy 2.5
10 disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
13.3 Political Reform Act and related reporting.
City Officials remain responsible for any reporting required by the Political Reform Act, including the reporting of travel payments and gifts from sources other than the City on Statements of Economic Interests (FPPC Form 700), and for compliance with the gift and honoraria limits of Government Code sections 89503 and 89502. Payments made by the City under this Policy are not gifts to the recipient, but payments made by third parties are not covered by this Policy and may be reportable. Questions should be directed to the City Clerk or the City Attorney.
Section 14. Miscellaneous
14.1 Severability.
If any provision of this Policy is held invalid, the remaining provisions remain in full force and effect.
14.2 Effect on prior policy.
This Policy supersedes all prior City travel and expense reimbursement policies applicable to the persons covered by Section 2.1, to the extent of any conflict.
Adopted: [CC adoption date]
Amended: [date of amendment(s)]