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HomeMy WebLinkAboutItem No. 06 Revision CC Policy No. 300-3 Credit Cards, Meal, MeetingsCity of Lake Elsinore 130 South Main Street __ Lake Elsinore, CA 92530 II www.lake - elsinore.org VV °— IKikr- ' City Council Agenda Report File Number: ID# 19 -620 Agenda Date: 6/23/2020 Version: 1 Status: Approval Final In Control: City Council / Successor Aqency File Type: Council Consent Calendar Agenda Number: 6) Revision to Citv Council Policv No. 300 -3. Citv Credit Cards. Meals. Meetinas. and Travel Expenses Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING REVISION TO COUNCIL POLICY NO. 300 -3, CITY CREDIT CARDS, MEALS, MEETINGS, AND TRAVEL EXPENSES. City of Lake Elsinore Page 1 Printed on 611812020 CITY OF_., LAKE LS I I`�OI�E ` DREAM EXTREME, To: From: Prepared by: Date: Subject: Recommendation REPORT TO CITY COUNCIL Honorable Mayor and Members of the City Council Grant Yates, City Manager Jason Simpson, Assistant City Manager June 23, 2020 Revision to City Council Policy No. 300 -3, City Credit Cards, Meals, Meetings, and Travel Expenses Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING REVISION TO COUNCIL POLICY NO. 300 -3, CITY CREDIT CARDS, MEALS, MEETINGS, AND TRAVEL EXPENSES. Background and Discussion For best practices, the Government Finance Officers Association (GFOA) recommends that governments formally adopt financial policies that provide guidelines with strategic intent for financial stewardship. Financial policies should define boundaries, manage risk, clarify intent, promote governance accountability, and define shared understanding. Additionally, Assembly Bill No. 1234 (AB 1234) requires the legislative body to adopt a written policy concerning reimbursement of expenses for travel, meals, and lodging. As a means to develop guidelines that assist in the management of the City's resources, the City established the City Council Policy No. 300 -3 in 2006. This policy guides the use of City- issued credit cards, as well as costs for meals, meetings, and travel. The policy incorporates AB 1234, which requires officials to submit expense reports immediately after the expense incurred; that the expense should incur at the lowest reasonable cost to the City; and that the official is required to provide a brief report at the next regular Council meeting. In line with GFOAs best practices, as new issues may arise and new experiences gained, policies should be reviewed and revised as needed. The Finance Department researched California's Government Code and the Government Finance Officers Association (GFOA) best practice policy recommendations. In 2012, California's Assembly Bill No. 23 (AB 23) went into effect. AB 23 amended the state's open meeting law by adding Section §54952.3 to the California Government Code. This provision City Council Policy No. 300 -3 June 23, 2020 Page 2 is related to the legislative body's compensation and stipend, which stipulates that actual costs for travel, meals, or lodging are not considered compensation or stipend while payments based on per diem rates are. Thus, the presented revision incorporates the addition to AB 23 by removing payments based on per diem rates and providing reimbursements or payments based on actual costs related to travel and meetings while conducting official City business. Additionally, the policy incorporates revision related to procedures that promote improved internal controls and fiscal responsibility. Fiscal Impact Fiscal impact resulting from the adoption of the revised Policy No. 300 -3 is possible savings in the use of general fund monies because reimbursement is based on actual costs rather than per diem rates. Exhibits A - Resolution B — Policy C — Expense Report Form RESOLUTION NO. 2020- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING REVISION TO COUNCIL POLICY NO. 300 -3, CITY CREDIT CARDS, MEALS, MEETINGS, AND TRAVEL EXPENSES Whereas, Government Finance Officers Association recommends governments formally adopt financial policies that define boundaries, manage risk, clarify intent, promote governance accountability, and define shared understanding; and, Whereas, the City Council adopted the City Council Policy No. 300 -3 in 2006 that provides guidance in use of City issued credit cards, costs of meals, meetings, and travels; and, Whereas, Assembly Bill 1234 requires the legislative body to adopt a written policy concerning the official's costs for travel, meals, and lodging; and, Whereas, Assembly Bill 1234 requires officials to submit expense reports immediately after expense incurred; and, Whereas, Assembly Bill 1234 requires officials incur travel expenses at the lowest reasonable cost to the City; and, Whereas, Assembly Bill 1234 requires officials to provide a brief report at the next regular Council meeting; and, Whereas, California Government Code §54952.3 establishes that the legislative body's compensation and stipend does not include actual costs for travel, meals, or lodging; and, Whereas, Revision of Council Policy 300 -3 incorporates new understanding from California Government Code §54952.3 and removes allowance of reimbursement based on per diem rates. Whereas, the City Council has determined revision of the City of Lake Elsinore City Council Policy No. 300 -3 allows reimbursement or payments for travel expenses based on actual costs and is in the best interest of the City and the community; and, Whereas, the City Council desires to adopt the revision of the City of Lake Elsinore's Council Policy 300 -3 "City Credit Cards, Meals, Meetings, and Travel Expenses." NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The attached Exhibit B, City of Lake Elsinore Revised City Council Policy 300 -3, is hereby adopted and made a part of this resolution. Section 2. This Resolution shall take effect from and after the date of its passage and adoption Passed and Adopted on this 23rd day of June, 2020. Brian Tisdale, Mayor City Council Resolution No. 2020 - Page 2 of 2 Attest: Candice Alvarez City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Candice Alvarez, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2020- was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of June 23rd, 2020, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Candice Alvarez City Clerk CITY OF LAKE ELSINORE, CALIFORNIA COUNCIL POLICY MANUAL SUBJECT: City Credit Cards, Meals, Meetings Policy No. 300 -3 And Travel Expenses Effective Date: 09/12/06 Revised: 06/22/08 Revised Page No. 1 of 7 PURPOSE To set forth the policy for official City travel and use of City credit cards and to establish procedures for reimbursement of expenses incurred by City Council members, appointed officials, members of special boards, commissions, and committees ( "Officials "). POLICY General The City of Lake Elsinore appreciates the value of having City Officials participate in and educate themselves at professional conferences, seminars, meetings, and other training events as they relate to City business. To foster and encourage participation in such events under state law, particularly Government Code, Sections §53232 et seq., the City has promulgated the this policy for reimbursement of various travel and related expenses incurred while attending approved events or training. AB 1234 Requirement • The legislative body must adopt a written policy concerning reimbursement of expenses for travel, meals, lodging and other actual and necessary expenses incurred in the performance of the Official's duties. The policy establishes guidelines, which shall be complied when an Official is arranging and participating in travel, lodging, and other approved expenses. • Reimbursement is available for actual costs that are reasonable and necessary out -of- pocket expenses incurred in the performance of an Officials duties as provided herein. • When seeking reimbursement, an Official is required to submit an expense report immediately after incurring the expense. All detailed receipts documenting each expense shall accompany the report. • An Official is required to provide a brief report on meetings or training attended at the expense of the City at the next regular Council Meeting. • When travel and related expenses are necessary, it is the responsibility of each Official to incur these expenses at the lowest reasonable cost to the City commensurate with schedules, work, and time constraints. • Review of all credit charges and expense reimbursements shall be part of the annual audit process, and the auditors may report any improper charges to the City Manager /City Council. CITY OF LAKE ELSINORE, CALIFORNIA COUNCIL POLICY MANUAL SUBJECT: City Credit Cards, Meals, Meetings Policy No. 300 -3 And Travel Expenses Effective Date: 09/12/06 Revised: 06/22/08 Revised Page No. 2 of 7 AB 23 Requirement Government Code, Section §54952.3 (b), (AB 23), provides that compensation and stipend shall not include amounts reimbursed for actual and necessary expenses incurred by an Official in the performance of City business. To prevent receiving additional unapproved compensation, an Official's allowable related travel expenses or reimbursements are on actual cost. Expenses Not to Exceed Federal Per Diem Rates An Official may claim reimbursement for actual costs of, but not limited to, personal meals, incidentals, transportation, and lodging, provided that such reimbursements shall not exceed the U.S. Government's Domestic Per Diem Rates in effect for their travel destination. The Domestic Per Diem Rates found on the U.S. General Services Administration's website at www.gsa.gov is by the Administrative Services Department to verify and monitor all travel expenses. Credit Cards Before an Official is assigned a City credit card, he or she must agree to the terms and conditions contained in the City's credit card agreement and the debt limit on such credit cards shall not exceed $2,500. The City Council reserves the right to request that an Official immediately surrender a credit card assigned by the City for any reason. Assigned credit cards will be held with the Administrative Services Department, Finance Division, and can be checked out as needed for training or travel purposes related to City business. The credit card is for actual and necessary expenses incurred in the performance of an Official's duties. An Official may not use a City- issued credit card for personal charges. Any improper use of a credit card assigned to an Official, including but not limited to improperly making personal charges, and charges for meals and incidental expenses (including stand -alone beverage charges), or failure to timely submit receipts, is subject to action by the City Council. Such action includes but is not limited to public reproval and/or cancellation of the City assigned credit card. Travel A. Ground Transportation Shuttle service shall be used between an airport or train station and a hotel whenever available. Taxis may be used only when the scheduled shuttle service or other methods of public transportation is not cost - effective, unavailable, or incompatible with the City business mission. CITY OF LAKE ELSINORE, CALIFORNIA COUNCIL POLICY MANUAL SUBJECT: City Credit Cards, Meals, Meetings Policy No. 300 -3 And Travel Expenses Effective Date: 09/12/06 Revised: 06/22/08 Revised Page No. 3 of 7 B. Travel by Vehicle — Rental Car When several Officials are attending the same event, every effort shall be made to coordinate plans and, if possible, share any needed rental car. In selecting and accepting rental cars, an Official shall be sensitive to both cost and appearance and, therefore, should avoid requesting or accepting luxury vehicles. If a rental car is used on a trip combining business and more than minimal personal travel, only that portion of the expense attributable to City business is reimbursed by the City; the Official is responsible for the portion of expense attributable to personal use. Rental car collision insurance (collision damage waiver or CDW for damage to the rental car) should be purchased on the rental contract, but do not purchase the liability (PD/PI, for damage to other cars) insurance. An Official must carry the name of the City insurer and its insurance policy number when renting automobiles. Information concerning the City's insurer and insurance policy number can be obtained by the Administrative Service Department, Risk Management Division. C. Mileage Reimbursement When using a private vehicle for City business activities, an Official may seek reimbursement based on the mileage driven (less the commute to and from the Official's home and City Hall) to attend the event at the reimbursement rate designated by the U.S. Government's Domestic Travel Rates. The City's Administrative Services Department can provide these rates. If an Official receives an auto allowance, mileage reimbursement is not reimbursable. D. Parking Parking fees on City travel are reimbursable. Less expensive, yet safe parking should be used whenever possible. Receipts are required in order for reimbursement. F. Traffic Tickets Officials are responsible for any parking tickets, moving violations, and fines received while using a personal or rental vehicle while on City business. G. Airline Travel Except for reasons of time and/or monetary allocation, transportation for trips of 200 miles or more may be by airline travel. An Official must travel using the lowest available fare arriving or departing within one hour of the desired time provided that such reimbursements shall not exceed the U.S. Government's Domestic Travel Rates. CITY OF LAKE ELSINORE, CALIFORNIA COUNCIL POLICY MANUAL SUBJECT: City Credit Cards, Meals, Meetings Policy No. 300 -3 And Travel Expenses Effective Date: 09/12/06 Revised: 06/22/08 Revised Page No. 4 of 7 Any unauthorized airline travel will be invoiced to the Official and will be subject to action by the City Council. H. City Pool Vehicle The use of a City Pool Vehicle is not available for any Official. Meals and Incidentals A. Meal Expenses for Local Meetings The City will reimburse actual costs of meals for City business meetings within the greater Southern California area as listed below if such reimbursement shall not exceed the U.S. Government's Domestic Travel Rates. Additionally, this applies to the use of the Official's City- issued credit card. • Meals with other officials or representatives of the City, other public or private agencies, associations, businesses or individuals so long as the meal is part of or in furtherance of the performance of the Official's duties, including promotion of good working relationships • Meals that are part of a business program or officially sponsored by business or professional associations related to City business and the performance of the Official's duties • Meals that an Official has while traveling on City business B. Incidental Expenses Incidental expenses are defined as fees and tips given to porters, baggage carriers, and bellhops. C. Tips or Gratuities Reasonable tips in relation to services rendered will be reimbursed. In the case of meals, tipping is not to exceed 15 percent of the total cost of the meal; in the case of taxis, 10 percent of the total fare is deemed acceptable. If necessary, porters and bellhops may be used and tipped from $1 to $2 per bag or box. D. Alcohol The City's Alcohol and Drug Abuse Policy remains in effect while the Official is on City business; therefore, the purchase of alcoholic beverages on a City credit card is prohibited. CITY OF LAKE ELSINORE, CALIFORNIA COUNCIL POLICY MANUAL SUBJECT: City Credit Cards, Meals, Meetings Policy No. 300 -3 And Travel Expenses Effective Date: 09/12/06 Revised: 06/22/08 Revised Page No. 5 of 7 Lodging Lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor if lodging at the group rate is available to an Official at the time of booking. If the group rate is not available, the Official shall use comparable lodging rates for reimbursements but shall not exceed the U.S. Government's Domestic Lodging Rates. Miscellaneous Costs A. Personal Expenses The City will not pay for purely personal expenses, even if incurred while on City business. This includes: • The cost of personal entertainment (books, theater tickets, movies, sporting events, etc.) • The cost of personal care items (toiletries, hair styling, manicures, etc.) • Valet and laundry service is not reimbursable for business trips of fewer than five consecutive days, unless necessary to clean clothing soiled while working • The cost of additional travel insurance accidental injury or death while traveling on City business in excess of such insurance already provided by the City B. Spouse and Significant Other Accompaniment Spouses and significant others may accompany an Official when traveling on business, provided, however, that the cost associated with such accompaniment shall not be reimbursable nor charged on a City- issued credit card. C. Personal Travel Personal travel (e.g., vacations, extended weekends, and so on) combined with business travel is permitted. Any costs (e.g., extra hotel nights, additional stopovers, long- distance calls, and so forth) associated with personal travel shall not be reimbursable nor charged on a City- issued credit card. Procedure for Seeking Reimbursement For the City to reimburse an Official for expenditures incurred for City business, an Official must submit an expense reimbursement form along with detailed documentation to the Administrative Services Department immediately upon return from the travel. It is the Official's responsibility to submit the expense report promptly. CITY OF LAKE ELSINORE, CALIFORNIA COUNCIL POLICY MANUAL SUBJECT: City Credit Cards, Meals, Meetings Policy No. 300 -3 And Travel Expenses Effective Date: 09/12/06 Revised: 06/22/08 Revised Page No. 6 of 7 In addition to providing written documentation of expenses incurred, an Official is to provide a brief report on meetings or conferences that were attended, at the expense of the City, at the next regular meeting of the City Council. All documents related to reimbursable agency expenditures are public records subject to disclosure under the California Public Records Act (Cal. Gov. Code Section §6250 et seq.). Documentation Expense reports must include all original itemized receipts for City credit card expenditures, lodging, cash expenditures, meals, shuttle and taxi services, and parking fees. A minimal exception applies in those rare instances where a receipt cannot be obtained. In such cases where a receipt is not obtainable, a written memo must be supplied. Officials must be as specific as possible in describing each expense. Each expense item should detail the following: • Reason for the expense (for example, League of California Cities' conference) • Type of expense (for example, meal, travel, and hotel) • Persons involved (for example, names of people for whom a meal was purchased, their title, and place of business) • Credit card or cash meal receipts with a detailed listing of purchase Penalties for Violations of Policy As per AB 1234, penalties for misuse of public resources or falsifying expense reports in violation of expense reporting policies may include, but are not limited to, the following: • The loss of reimbursement privileges • The loss of credit card privileges • Restitution to the City • Civil penalties for misuse of public resources under California Government Code Section 8314 • Prosecution for misuse of public resources under California Penal Code Section 424 HISTORY Adopted by Resolution No. 2006 -152 09/12/06 Revised by Resolution No. 2008 -79 07/22/08 CITY OF LAKE ELSINORE, CALIFORNIA COUNCIL POLICY MANUAL SUBJECT: City Credit Cards, Meals, Meetings Policy No. 300 -3 And Travel Expenses Effective Date: 09/12/06 Revised: 06/22/08 Revised Page No. 7 of 7 Revised by Resolution No. 2020- CITY 11 LAEZE LSIh0P�E T " DREAM NAME: CITY OF LAKE ELSINORE Meeting and /or Travel Expense Report City Council Policy No. 300 -3 June 23, 2020 2020 DEPARTMENT: PURPOSE: LOCATION: DURATION: EXPENSE ACCOUNT: Mondav Tuesdav Wednesdav Thursdav Fridav Saturdav Sundav DATE ADJs LINE TOTAL PER DIEM $ REGISTRATION FEES $ GAS & OIL* $ CAR RENTAL* $ TAXI OR BUS FARES* $ PARKING* $ AIRFARE $ HOTEL /ADDITIONAL DAY $ INTERNET ACCESS $ TELEPHONE (Official) $ BREAKFAST* $ LUNCH* $ DINNER* $ TIPS /MISC. $ OTHER (Explain Below): $ $ TOTAL EXPENSES $ $ $ $ $ $ $ $ $ MILEAGE REIMBURSEMENT ** DATE TRAVEL TO / FROM NO. MILES REMARKS TOTAL MILEAGE $ 0.580 /mi $ * Attach original receipts on page two. Copies will not be accepted. ** Miles less daily commute miles = Reimbursable Amount. Attach basis for miles determined. * ** City prepaid expenses = Charges paid by City credit card or check I certify that the foregoing statements are correct: SIGNED: DATE: APPROVED: DEPARTMENT HEAD DATE: APPROVED: DIRECTOR OF ADMINISTRATIVE SERVICES AUDITED BY: $0.545 Standard Mileage Rate for 2018 TOTAL EXPENSES & MILEAGE $ EMPLOYEE TRAVEL ADVANCE * ** CITY PREPAID EXPENSES EMPLOYEE REIMBURSABLE EXPENSES RETURN TO CITY DUE TO EMPLOYEE DATE: 1 of 1