CC Resolution 2006-129 Travel & Expense Policy, Council, Members of Legislative Bodies, & EmployeesRESOLUTION NO. 2006-129
A RESOLUTION OF THE CITY COUNCIL OF'THE CITY OF
LA QUINTA APPROVING AND SETTING FORTH THE
TRAVEL AND EXPENSE POLICY FOR CITY COUNCIL
MEMBERS, MEMBERS, OF CITY LEGISLATIVE BODIES
AND CITY EMPLOYEES, AND SUPERCEDING ALL
PREVIOUS RESOLUTIONS WHICH ARE INCONSISTENT
HEREWITH
WHEREAS, in the course of their service to the City, City Council members
routinely incur substantial job related expenses, including increased cellular phone
use charges, automobile depreciation, gasoline expenses and insurance; and City
Council members, members of City legislative bodies and City employees incur
other incidental costs relating to meals, parking, entertainment, phone and related
miscellaneous charges; and
WHEREAS, the City Council of the City of La Quinta takes its stewardship
over the use of its limited public resources very seriously; and
WHEREAS, public resources should only be used when there is a substantial
benefit to the City Council and the City of La Quinta; and
WHEREAS, such benefits include: (1) the opportunity to discuss the City's
concerns with state and federal officials, (2) participation 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; and
WHEREAS, (1) legislative and other regional,,state and federal City business
is frequently conducted over meals, (2) 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, and (3) each
meal expenditure must comply with the limits and reporting requirements of local,
state and federal law; and
WHEREAS, the City of La Quinta Travel and Expense Policy attached hereto
as Exhibit A has been established to provide guidance to the Council on the use
and expenditure of City resources, as well as the standards against which those
expenditures will be measured; and
Resolution No. 2006-129
Travel and Expense Policy
Adopted: December 19, 2006)
Page 2
WHEREAS, this policy satisfies the requirements of Government Code
Sections 53232.2 and 53232.3 in the even that such requirements could be
constitutionally applied to charter cities; and
WHEREAS, this policy supplements the definition of actual and necessary
expenses for purposes of state laws relating to permissible uses of public
resources; and
WHEREAS, this policy supplements the definition of necessary and
reasonable expenses for purposes of federal and state income tax laws; and
WHEREAS, this policy also applies to any charges made to a City credit card
used by Council members and advances provided to Council members, members of
City boards and commissions and City employees.
NOW THEREFORE, the City Council of the City of La Quinta DOES HEREBY
RESOLVE:
Section 1: The recitals above are true and correct and incorporated herein.
Section 2: The City of La Quinta Travel and Expense Policy, a copy of which
is attached hereto as Exhibit A, is hereby approved and adopted. All prior
resolutions adopting prior travel and expense policies and all prior travel and
expense policies are hereby superseded by the revised City of La Quinta Travel and
Expense Policy attached hereto as Exhibit A.
Section 4: The City of La Quinta Travel and Expense Policy complies with
the requirements of Government Code Sections 53232.2 and 53232.3, in the
event that these requirements can constitutionally be applied to charter cities.
Section 5: This resolution shall take effect from and after its,adoption.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta
City Council held on this 19' day of December, 2006, by the following vote to wit:
AYES: Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph
NOES None
ABSENT: None
ABSTAIN: None
Resolution No. 2006-129
Travel and Expense Policy
Adopted: December 19, 2006)
Page 3
DON AD PH, 4yor
City of La Quinta, California
ATTEST:
VERONICA J ONTECINO, CMC, City Clerk
City of La Quinta, California
(City Sea[)
APPROVED AS TO FORM:
M. AT RINE JE ON, City Attorney
City of'La Quinta, California
Resolution No. 2006-129
Travel and Expense Policy
Adopted: December 19, 2006)
Page 4
Exhibit A
CITY OF LA QUINTA
TRAVEL AND EXPENSE POLICY
I"9 0T.1 X
To establish uniform guidelines for City Council members, members of City legislative bodies,
and City employees to follow with regard to travel and expense reporting that arises in the course
of conducting City business.
BACKGROUND:
The City recognizes that attendance at meetings and conferences serves a vital forum for the
exchange of ideas in all areas of municipal administration, presenting and receiving information,
and advocating legislation of benefit to the City. The governing factor in authorizing attendance
at these functions is the tangible benefit accruing to the City because of such attendance in
relation to the overall expense to the City.
In the course of serving the City, City Council members routinely incur substantial job related
expenses, including increased cellular phone use charges, automobile depreciation, gasoline
expenses and insurance; and City Council members, members of City legislative bodies, and
City employee incur other incidental costs relating to meals, parking, entertainment, phone and
related miscellaneous charges.
To that end, City Council members, members of City legislative bodies, and City employees are
occasionally required to expend City funds. This is accomplished either by requesting City
funds in advance, using City issued credit cards, or by spending one's own funds and requesting
reimbursement from the City.
Government Code Sections 36514.5, 53232.2 and 53232.3 authorizes reimbursement for. actual
and necessary expenses incurred in the performance of official duties. The following policies are
intended to cover what should be reasonable expenses of business meetings and travel and the
reporting thereof and may not be all-inclusive. The reasonableness of any unforeseen situations
will be decided upon by the City Manager for employee expenditures and by the City Council for
elected and appointed officials' expenditures. .
Resolutlon No. 2006-129
Travel and Expense Polley
Adopted: December 19, 2006)
Page 5
POLICY:
1. AUTHORIZED EXPENSES
City funds, equipment, supplies (including letterhead) and, employee time must only be used for
authorized City business. The following types of expenses generally constitute authorized
expenses, provided that other requirements of the policy are met:
A. Communicating with representatives of regional, state and national government
on City -adopted policy positions;
B. Attending educational seminars designed to improve officials' skill and
information levels; "
C. Participating in regional, state, and national organizations whose activities affect
the City's interest;
D. Recognizing service to the City (for example, thanking a longtime official or
employee with a retirement gift or celebration of nominal value or cost);
E. Attending City events;
F. Implementing a City -approved strategy for attracting or retaining business to the
City of La Quinta, this will typically involve at least one staff member;
G. City Council, stipends for automobile and cellular .use, as provided by City
Municipal Code section 2.04.050, which stipends constitute a best estimate of
actual and necessary expenses, based on increased cellular phone use charges,
automobile depreciation, gasoline expenses, and insurance.
2. RESPONSIBILITY
All persons subject to this policy have the responsibility to determine the reasonableness of
travel costs, as justified by the nature of travel. The intent is to account for actual and necessary
reimbursable expenses while each City Council member, member of a City legislative body or
employee accomplishes City goals as reasonably as possible. This policy is not intended to
address every issue, exception or contingency that may arise in the course of City travel or
attendance at meetings. Accordingly, the basic standard that should prevail is to use good
judgment in the use and stewardship of City funds. Any deviations from this policy should be
approved by the City Council.
The City Manager shall administer and be the approving authority for the expenditure of travel
and expense funds in accordance with appropriations made by the City Council in the annual
adopted budget for all City employees and City legislative bodies, with the exception of the
appropriations made for City Council members travel.
Personal and City travel must not be commingled in such a manner as to increase allowable
expense or otherwise affect adversely the interest of the City.
Resolution No. 2006-129
Travel and (Expense Policy
Adopted: December 19, 2006)
Page 6
3. TRAVEL AUTHORIZATION
Official travel by persons covered by this policy requires prior written authorization by the
appropriate approving authority. The City form, "Travel Request and/or Advance," shall be used
to document authorization (Attachment 1).
Travel trips of one -day or less shall not require a pre -approved "Travel Request and/or Advance"
if no advance is requested, but the second part of the form covering conference update reporting
must be 'completed, if applicable, upon return.
Out-of-state travel, round trips over 300 miles, or trips involving overnight stay must be
approved by the City Council. If time does not permit City Council approval, the City Manager
may authorize the travel request. The City Manager shall notify the City Council of the
authorized travel and the circumstances which prevented City Council review/approval. Upon
return, the "Conference Update Report' section of the "Travel Request" form must be completed.
4. TRAVEL EXPENSES
Persons covered by this policy may provide their own funding and file claims for reimbursement,
or may apply for an advance of public funds by utilizing the "Travel Request and/or Advance"
form. All requests for advance of travel funds are to be submitted through the approving
authority to the Finance Department at least five (5) working days before the intended date of
departure. All advances must be properly accounted for based on actual and necessary expense
incurred, upon termination of travel for which the advance was made. Advance payments do not
constitute approval to spend the entire amount advanced. Only actual and necessary expenses, as
further limited by the specific provisions of this policy, will be paid from City funds.
5. ADVANCE RESERVATIONS —CANCELLATION
Persons covered by this policy are encouraged to make reservations for any meeting, convention,
or dinner for which the City would bear the cost, which he or she is planning to attend, in
sufficient time to allow for lower airfare or reservations costs to be obtained.
Cancellations that result in expenditure of City funds will be reviewed on a case -by -case basis by
the City Manager to determine whether the employee may be held responsible for the cost. The
full City Council will make that determination for any canceled.public official travel.
6. TRANSPORTATION
Individuals requesting official, travel should attempt to travel by the means most economical to
the City consistent with scheduling needs and cargo space. In selecting a particular method of
transportation, consideration shall be given for the total cost to the City which will result;
including overtime, lost work, and actual transportation costs. In the event that a more expensive
transportation form is used, the cost borne by the City will be limited to the cost of the most
Resolution No. 2006-129
Travel and Expense Policy
Adopted: December 19, 2006)
Page 7
economical, direct, efficient and reasonable transportation form unless otherwise approved by
the City Council. Government and group rates must be used when available.
A. Automobile Travel
Transportation by car may be done either with a personal vehicle or City vehicle. For persons
other than those receiving a monthly auto allowance, if a personal vehicle is used, net mileage
will be reimbursed at the current Internal Revenue Service Rates (see www.irs.gov). Net
mileage equals roundtrip mileage minus any commute miles.
Those persons rising their own vehicle and receiving a monthly auto allowance will be
reimbursed only for the net mileage in excess of 60 miles. City Council members receive a
stipend for automobile use, as provided by City Municipal Code section 2.04.050, which stipend
constitutes a best estimate of actual and necessary expenses, based on increased cellular phone
use charges, automobile depreciation, gasoline expenses and insurance. In any case, mileage
will not be reimbursed for portions of the trip made for non -business related matters.
When the use of public air carrier transportation is approved, private automobile use to and from
the airport shall be reimbursed for all allowable miles at the current Internal Revenue Service
Rates (see www.irs.gov) or commercial auto rental will be allowed if necessary and alternative
personal or public transportation is unavailable or unreasonable.
B. Air Travel and Automobile Rental
(1) Coach Class Air Travel. Reimbursement shall be made for coach air travel if
the cost of such air travel is competitive with other passenger airlines' coach
airfares.
(2) Rail Travel. Reimbursement shall be made for coach rail travel if the cost of
such rail travel is competitive with other coach rail travel fares.
(3) Taxi Service. Charges for taxi service are reimbursable if such transportation
is the most economical, practicable and efficient mode of transportation available
under the circumstances. Portions of taxi charges that are related to excessive tips
(i.e., in excess of 15%) will not be reimbursed.
(4) Shuttle Service. Charges for shuttle service are reimbursable if such
transportation is the most economical, practicable and efficient mode of
transportation available under the circumstances.
(5) Bus Fare. Charges for bus service are reimbursable if such transportation is the
most economical, practicable and efficient mode of transportation available under
the circumstances.
Resolution No. 2006-129
Travel and Expense Policy
Adopted: December 19, 2006)
Page 8
(6) Vehicle Rental. Charges for vehicle rental are reimbursable if such
transportation is the most economical, practicable and efficient mode of
transportation available under the circumstances. When determining the type of
rental car to be used, consideration should be given to the economic standards set
forth in this policy and the appropriate use and stewardship of City funds.
(7) Out of Pocket Expenses Related to Use of City Owned Vehicles.
Reimbursement for fuel and other out-of-pocket expenses incurred as a result of
the use of a City owned vehicle is permissible provided that use of the City owned
vehicle is the most economical, practicable and efficient mode of transportation
available under the circumstances.
(8) Chartered Travel. Use of chartered travel shall be reimbursable if such
transportation is the most economical, practicable and efficient mode of
transportation available under the circumstances.
(9) Airport parking may be used during travel on official City business and is
reimbursable with receipts.
7. LODGING
Lodging expenses will be reimbursed or paid when travel on official City business reasonably
requires an overnight stay. Lodging shall be obtained at the most economical rate available for
safe, clean, convenient, and quality accommodations. Factors such as proximity to destination
and prevailing rates should be considered for reasonableness., 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. Travelers
must request government rates, when available. If the group rate or government rate is not
available, lodging rates that do not exceed the median retail price for lodging for that area listed
on websites similar to www.priceline.com or www1ravelocity.com or an equivalent service shall
be considered reasonable and hence reimbursable.
A. Advance Booking and Time Period
An employee is expected to make reservations well in advance whenever possible and to take
other actions to ensure that lodging is secured at moderate rates,, Lodging shall, be limited to the
maximum number of nights required to conduct the assigned City business. If a person subject
to this policy chooses to arrive earlier or stay later than the length of City business, the additional
lodging and other expenses related to this decision are the individual's personal expenses and
will not be reimbursed or paid by the City.
B. Family Member Accompaniment
There is no objection to a spouse and/or other family member(s) accompanying a person subject
to this policy on a City business trip, if their presence does not, detract from the performance of
Resolution No. 2006.129
Travel and Expense Policy
Adopted: December 19, 2006)
Page 9
City duties. The attendance at the meetings and conferences by such family members of City
employees and officials is to be considered the sole expense of the individual employee and/or
official, and all differences in costs brought about by the attendance and/or accompanying travel
of a family member shall not be borne, paid or reimbursed by the City.
8. MEALS
Meals, except for those included in the cost of the registration, are allowable at actual costs
including reasonable tips and room service charges not to exceed $75 per day. Expense claims
for meals including people other than the claimant shall include the following information:
1. Date expense incurred
2. Parties participating
3. Purpose of the meeting
9. OTHER ALLOWABLE EXPENSES
The following expenses shall be permissible, subject to other provisions of this policy to
the extent that they are actual and necessary:
A. Incidental transportation expenses, such as ferry fares; bridge, toll road and
vehicle parking fees;
B. Telephone and facsimile charges for official business;
C. Personal telephone calls are allowable, not to exceed $25 per day;
D. Reasonable fees and tips paid to waiters, porters, baggage handlers, bellhops,
hotel maids, and other service personnel; and
E. Business related entertainment functions that are attended to promote City related
business objectives are allowable, as long as detail is provided stating who
attended and what subjects were discussed.
10. NON -ALLOWABLE EXPENSES.
Personal expenses are not allowable. These may include, but are not limited to:
A. Barber and/or beauty shop charges
B. Fines for traffic violations
C. Private automobile repairs
D. Expenses of any persons accompanying the person subject to this policy on the
trip (except as noted in Section 8(E))
E. Personal telephone calls (except as allowed in Section 8(c))
F. Purchase of personal items
G. Fitness/Health Facilities or Massages
H. Political contributions
Resolution No. 2006-129
Travel and Expense Policy
Adopted: December 19, 2006)
Page 10
Expenses that are not otherwise listed or identified in this policy shall require prior
approval at a public hearing of the City Council pursuant to Government Code
section 53232.2(f).
11. SETTLEMENT OF EXPENSES
All covered persons are responsible for the accurate preparation of their claims, and the
responsibility of omission or commission cannot be shifted to another individual. A Travel
Expense Report" (Attachment 2) substantiated by receipts which verifies the claimed
expenditures as being an actual expense, must be submitted to the City Manager within ten (10)
days of the expense being incurred or the end of the trip, whichever is later. Inability to provide
such documentation in a timely fashion may result in the expense being borne by the individual.
All expenses are subject to verification that they comply with this policy.
Pursuant to state law, Travel Expense Reports are public records.
If a person subject to this policy has drawn expense money in advance, a settlement must be
made based on actual expenses that are substantiated by receipts. If actual expenses exceed the
advance, upon approval by the City Manager, said expenses will be reimbursed to the traveler by
the Finance Department. If actual expenses do not exceed the expense advance, received, said
traveler shall return all unused portions of the expense advance to the Finance Department.
To be reimbursed for expenditures, an employee or official must sign and submit a "Travel
Expense Report" form or, if applicable, the "Conference Update Report" section of the "Travel
Request" form. No reimbursement shall be made until the "Travel Expense Report" form or, if
applicable, the "Update Report" section of the "Travel Request" form has been properly
executed and approved by the City Manager, with the exception of City Council members.
Elected and appointed officials' travel expenditures will be reimbursed if they are within
budgetary constraints, all proper forms have been completed and signed, and receipts are
attached.
The decision of the City Manager shall be final in all cases where conflicts of opinions on
reimbursement or allowable expenses exist. For City Council members and appointed officials,
the decision of the Council shall be final.
REPORTS BY CITY COUNCIL, BOARD OR COMMISSION
In accordance with state law, Council members and members"of Boards and Commissions shall
provide a brief report in either verbal or written form, on meetings attended at City expense at
the next meeting of the City Council.
Resolution No. 2006-129
Travel and Expense Policy
Adopted: December 19, 2006)
Page 11
PROCEDURES:
There are two forms to be utilized for travel and expense reporting. The first form is the
"Request for Travel and/or Advance" form. This form is comprised of two basic parts: Part 1
covers the authorization for travel and/or an advance, and Part 2 provides follow-up information
on the event attended. The second form is the "Travel Expense Report' which is needed in order
to create the proper audit trail necessary for recording the expenditure of City funds.
1. "Request for Travel and/or Advance" form:
Out of state travel, trips in excess of 300 miles, or trips that involve overnight stay must be
approved by the City Council.
Trips or conferences that do not fall into the above category may be approved by the appropriate
department head, or by the City Manager in the case of department head or non -elected officials'
requests. The City Manager authorizes his own travel or conferences when they do not fall into
the City Council approval category mentioned -in the first paragraph.
Part 1 of this form, "Authorization," must be completed prior to the trip or conference.
Requests for cash advances are included in this part of the form. If no advances are requested
and City Council approval is not needed, this part of the form may be filled out upon completion
of the trip or conference if the appropriate verbal authorization has been granted.
All approved advance requests are to be submitted to Finance at least five (5) working
days before being needed. A second copy of this form will remain with Finance as payment
backup documentation. The traveler will retain the original until Part 2 is completed and
submitted with the Expense Report. Advances and all other expenses must be reconciled and
approved on the "Travel Expense Report" and submitted to Finance within five (5) working days
after completion of the trip or conference.
Part 2 of this form, "Conference Update Report," is to be completed with a short
narrative highlighting the subject of the conference and its relevance to City operations. This
section must be completed when any conference expenses are incurred in the time period
required by this policy.
The original "Request for Travel and/or Advance" form must be attached to the "Travel
Expense Report" when that form is submitted.
2. "Travel Expense Report" form:
The "Travel / Expense Report" (referred to as the "expense report") is required to track all travel
and expenditures of the City. A proper audit trail, which includes supporting receipts, is
necessary to comply with travel and expenses reporting requirements.
Resolution !No. 2006-129
Travel and'Expense Policy
Adopted: December 19, 20061
Page 12
The expense report which must be filled out is designed to be a logically grouped over -view of
the total expenditures incurred while traveling. Detail and supporting documentation, including
receipts ,and the "Request for Travel and/or Advance" form, must be attached as backup to this
expense report. There is some space provided on the form itself for detailed explanation of any
circumstances or situations that may need to be addressed.
Meal and business entertainment receipts must identify names of who attended and .what
business matters were discussed. Itemized hotel bills are needed rather than, or in addition to,
lump sum receipts. Monthly credit card bills are not to be used in lieu of the actual charge
receipts, Expense items for which no receipts are available will not be reimbursed.
The expense report is divided into three columns to cover whatever spending situations may
occur.
Column 1 is to contain allowable business expenses that the claimant has paid for
personally, whether by personal credit card, check or cash. Cash advances become personal cash
as soon as they are received from the City. Therefore, column i should be used when spending
cash even if it was received from a City advance. The advance in such cases will also be listed
in column 3 as a non -business expense of the City. When columns 1 and 3 are netted together,
the refund amount will be determined.
The Expense Report should also be used for,all mileage "reimbursement claims whether
conference related or not. Column 1 of the form shall" be completed with appropriate detail.
Column 2 is to contain all City paid expenses. - These will primarily be City credit card
expenses but may also include any checks or cash that were paid directly to the provider and
were not received by the as an advance. Such checks or cash paid directly may not always be
readily determined, but the claimant needs to include these amounts to reflect the total cost to the
City.
Totals from columns 1 and 2 should be added and the result placed.in the "Total Trip
Expense" box.
Column 3 is to contain the amounts which were paid by the City on either check, cash, or
credit card for items which are not reimbursable expenses. ,"All efforts should be made not to use
City funds for unallowable expenditures.
Any advances that the claimant receives, whether check or cash, must be picked up in
this column. Advances are considered non -business expenditures by the City and are the
property of the recipient. Allowable expenditures that occur in such cases are listed separately in
column 1.
The total from column 1 is subtracted from the total of column 3 and the balance is due
the City. If that result is a negative balance, it is a balance due the claimant.
Resolution No. 2006-129
Travel and Expense Policy
Adopted: December 19, 20061
Page 13
I
The claimant must sign the expense report certifying its correctness. Council member reports
need only Council member signature. All other reports require City Manager and the appropriate
department head signature approval.
All expense reports will be kept in a segregated payable file whether money is due the claimant
or not. Finance will verify credit card receipts with the expense report and then attach the
receipts to the credit card billing as backup documentation. Any credit card billing received
without receipts is not a reimbursable expense. Any personal charges incurred, or advances not
reconciled, are considered a receivable to the City and may be deducted from any checks issued
by the City to that individual after the five (5) day report filing deadline has expired.
Because these items are public records, staff is instructed to redact private financial, information
(i.e., credit card numbers or account numbers) to protect the privacy of those submitting receipts.
COMPLIANCE WITH STATE LAW / VIOLATIONS
City officials should keep in mind that some expenditures may be subject to reporting under the
Political Reform Act and other laws. All agency expenditures are public records subject to
disclosure under the Public Records Act and other applicable laws. Use of public resources or
falsifying expense reports in violation of this policy may result in any of the following:
1. Loss of reimbursement privileges;
2. A demand for restitution to the City;
3. The City's reporting the expenses as income to the person to state and federal
taxing authorities;
4. Civil penalties of up to $1,000 per day and three times the value of the resources
used;
5. Prosecution for the misuse of public resources.
Attachments: 1. Request for Travel and/or Advance Form ,
2. Travel Expense Report Form