POLICY AND PROCEDURE
Subject: Legislative Body
Reimbursement
Index: Finance
Number: 1201-8
Effective
Date:
April 4, 2023 Prepared By: Finance and
Administrative Services
Supersedes: May 15, 2008 Approved
By:
1.0 PURPOSE:
Expense reimbursement policies and procedures for members of the legislative body are hereby established to provide a common understanding of the circumstances in which such persons are entitled to reimbursement for travel outside the local area; to provide for the reimbursement of expenses incurred while members of the legislative body are conducting City business; and to ensure that all requests for reimbursement are in accordance with AB 1234, Government Code Section 53232 and existing City policies and generally accepted accounting practices.
2.0 ORGANIZATIONS AFFECTED:
Elected City Council Members
Appointed Members of City Commissions and Committees
Any other “Brown Act” Legislative Bodies
3.0 REFERENCES:
Government Code Section 53232
AB 1234
4.0 POLICY:
4.1 Reimbursement – Members of the legislative body will be reimbursed for all business expenses incurred while conducting City business provided that all required documentation is presented to substantiate the expenses.
Reimbursements will be made for:
1. Communicating with representatives of regional, state and national government on City adopted policy positions.
2. Attending educational seminars designed to improve skills and knowledge. Miscellaneous expenses for registration, tuition, parking, and phone are reimbursable for City authorized business.
Miscellaneous expenses must be supported with original itemized receipts.
3. Participating in regional, state and national organizations whose activities affect the City’s interests.
4. Any costs associated with attending City events.
5. Implementing a City-approved strategy for attracting or retaining businesses to the City which will typically involve at least one staff member.
Reimbursement is limited to lodging, telephone charges, transportation, registration fees, meals, parking, airport or train station to hotel transportation, tips and laundry/dry cleaning.
4.1.1 Lodging reimbursement is limited to the minimum number of nights required to conduct the assigned City business. If a member of the legislative body chooses to arrive earlier, stay later or upgrade the room, the additional expenses will not be reimbursed by the City.
4.1.2 If Lodging is in connection with a conference or organized educational activity conducted in compliance with subdivision (c) of section 54952.2, included but not limited to, ethics training required by Article 2.4, lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor, provided that lodging at the group rate is available to the member of a legislative body at the time of booking. (53232.2 (d))
4.1.3 If the group rate is not available, the member of a legislative body shall use comparable lodging that is consistent with the Internal Revenue Service rates for reimbursement of travel and use government and group rates offered by a provider of lodging services when available. Nonreimbursable lodging-related expenses include, but are not limited to, costs for an extra person staying in the room, costs related to late check out or un-cancelled reservations, in-room pay-per-view movie rentals, and non-City business related phone calls. Original itemized receipts must accompany claims for lodging
reimbursements.
4.1.4 Local and long distance telephone charges will be reimbursed only when such calls are made while conducting City business.
4.1.5 Councilmembers are expected to conduct City business within Orange County through attendance at meetings of Boards and Commissions, as appointed by the City Council, as well as meetings with City staff, constituents, attendance at events, etc., during various hours of the day or night. It is determined by the City Council that their effectiveness in representing the City is dependent on frequent and availability of adequate and reliable vehicles. Therefore, the City Council is eligible to use vehicles purchased and maintained by the City when appropriate.
4.1.6 Laundry/dry cleaning expenses will be reimbursed only for members attending a seminar or school for more than one week in length.
4.1.7 Reasonable actual costs of meals or refreshments provided while conducting City business will be reimbursed. Identification of the elected and appointed officials and the nature of the business must be documented. As an alternative to actual costs a “per diem” reimbursement may be selected for reimbursement.
4.1.7.1 Expenses for liquor, spouses, guests or other persons not authorized to receive reimbursement will not be allowed.
4.1.8 Costs incurred, as part of travel, but not identified as allowable for reimbursement as part of this policy are considered the individuals responsibility.
4.2 Per Diem Allowance – A daily or "per diem" allowance for meals, including the meal tip, has been established at the following rates:
Breakfast $9
Lunch $12
Dinner $25
4.2.1 A "per diem" allowance will not be reimbursed for meals included in the conference or seminar cost. A copy of the conference registration (brochure) and whether meals are included should be attached to the Travel Expense Report.
4.2.2 A “per diem” allowance will not be allowed if the meal is provided as part of the hotel stay.
4.2.3 Meal expenses and associated gratuities should be moderate, considering community standards and the prevailing restaurant costs of the area. The City will not pay for or reimburse for alcohol/personal bar expenses. The City will use the IRS per diem rates as a guide for reimbursement.
4.3 Transportation –
4.3.1 The City of San Clemente will not reimburse Councilmembers for personal travel (or the personal portion of any travel); political or charitable contributions or events; family expenses including partner, children or pet expenses when accompanying a member on City business; 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; personal automobile expenses, including repairs, traffic citations, insurance or gasoline; and personal losses incurred while on City business.
4.3.2 When traveling, Councilmembers will use the most economical mode and class of transportation reasonably consistent with scheduling needs and space requirements. This includes the use of the most direct and time efficient route. In the event that a more expensive transportation form or route is used, the cost borne by City will be limited to the cost of the most economical, direct, efficient, and reasonable transportation form. Government and group rates must be used when available.
4.3.3 Reasonable and necessary charges for public transportation, taxi, or shuttle service are reimbursable at actual cost with receipts. Car rental is allowed when it is determined it is the most economical and reasonable mode of transportation during travel. Itemized original receipts must be submitted with vehicle rental reimbursement claims.
4.3.4 Airfares that are equal to 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 (http://www.csac.counties.org) and the State of California are presumed to be the most economical and reasonable for purposes of reimbursement under this policy. When reimbursement for parking is requested, any airport parking more than 24 hours must be in long term parking or private economy lots. Reasonable and standard baggage handling fees will be
reimbursed. If a Councilmember uses a personal car for travel, the Councilmember can seek reimbursement for mileage at the Internal Revenue Service (IRS) rates presently in effect.
4.4 Travel Advance – Individuals are encouraged to prepay all transportation, lodging and registration costs. The City may provide an advance of City funds if requested.
4.5 Mileage Reimbursement – Mileage for personal vehicles may be reimbursed only when the cost is lowest when compared to other means of transportation. If a personal vehicle is authorized for use, a mileage reimbursement will be made at the standard mileage rate published by the Internal Revenue Service. The mileage reimbursement is intended to pay for gas, wear and tear and liability insurance for the personal vehicle.
4.6 City Manager Credit Card – A credit card has been made available to the City Manager to pay for business conducted on behalf of the City. The cardholder is responsible for the security and use of all purchases made with the credit card.
5.0 DEFINITIONS:
Not Applicable.
6.0 PROCEDURE:
6.1 The City of San Clemente travel and expense policy is intended to be consistent with all provisions of State law. Where and if discrepancies between State law and these policies exist, the provisions of State law will prevail. All Councilmember travel expenditures in excess of $250 require prior approval by the City Council. The estimated travel expenses will be placed on the consent agenda of a City Council meeting prior to travel whenever possible. If travel is more urgent and justified, the travel expenses will be placed on the consent agenda of a City Council meeting immediately following the travel.
6.2 Legislative Reporting - Members of the legislative body shall provide brief reports on meetings attended at the expense of the City at the next regular meeting of the legislative body. (53232.3(d))
6.3 Travel Expense Report - Requests for reimbursement of authorized expenses must be made on a Travel Expense Report. All requests must be submitted within 60 days of the original transaction or the completion of travel to be reimbursed. Documentation of all original receipts or bank card charge slips detailing the amount paid, the items/services received and the date must be submitted with the Travel Expense Report. Requests for reimbursement will be processed within the normal Accounts Payable schedule. Travel expense reports are located in Microsoft Word under the general templates, and general tab. The time calculations for per diem starts when the Councilmember begins travel. Receipts are not required to claim the meal and incidental expenses per diem. However, a travel expense report indicating time, date, place, and business purpose must be completed upon return.
6.4 Travel Advance Requests - Requests for Travel Advances must be made on a Travel Expense Report. Upon completion of travel, a second Travel Expense Report must be submitted with the proper documentation of expenses for Finance Department reconciliation. In the event that the actual expenses were less than the amount advanced, a refund of the unspent portion of the advance must be turned in with the expense report.
If the expenses were greater than the amount advanced, reimbursement will be processed within the normal Accounts Payable schedule.
6.5 Credit Card Repayment – The credit card statement is to be provided with copies of the supporting documents/receipts and list the purpose for all purchases made with the credit card. The expenditure account number for each of the purchases is to be properly listed on the payment request. This information is to be submitted to the City Treasurer for approval. Once approved, the expenses will be submitted to Finance to be processed within the normal accounts payable schedule.
6.6 Approvals – Travel expenses and travel reimbursements must be first approved by the City Manager before reports are sent to the Finance Department for the processing of payment. In the event the City Manager is uncertain whether use of a credit card or a request for cash advancement complies with this Policy, the City Manager will ask the Councilmember to seek authorization from the City Council.